Infrastructure India plc Increase of Bridging Loan (9239R)
20 June 2018 - 4:00PM
UK Regulatory
TIDMIIP TIDMTTM
RNS Number : 9239R
Infrastructure India plc
20 June 2018
20 June 2018
Infrastructure India plc
("IIP", the "Company" and together with its subsidiaries the
"Group")
Increase of Bridging Loan
Infrastructure India plc, an AIM quoted infrastructure fund
investing directly into assets in India, announces that it has
agreed a US$6.0 million increase of the existing US$34.0 million
unsecured bridging loan facility (the "Bridging Loan").
The enlargement of the Bridging Loan will provide the Group with
additional capital whilst it continues to progress its ongoing
financing discussions.
Whilst negotiations have taken longer than originally
anticipated, the Company continues to be in advanced negotiations
with a third party in relation to a potential financing and these
discussions continue to progress. The new funding would enable the
Company to repay the Bridging Loan as well as provide additional
working capital and construction capital to Distribution Logistics
Infrastructure Limited, a key subsidiary of the Company, and
provide for the Group's general working capital needs.
Enlargement of Bridging Loan
The Company announces that it has agreed a further increase to
the Bridging Loan which was previously provided to the Company by
Cedar Valley such that a further US$6.0 million (the "Additional
Funds") has been made available to the Company under the Bridging
Loan (the "Bridging Loan Enlargement").
The Bridging Loan was originally provided to the Company in June
2017 by Cedar Valley Financial ("Cedar Valley") in an amount of
US$8.0 million and was subsequently increased to US$18.0 million in
November 2017, to US$21.0 million in January 2018, to US$23.0
million in February 2018, to US$26.0 million in March 2018, to
US$28.0 million in April 2018 and to US$34 million during May
2018.
The Company intends to draw down the Additional Funds
immediately. On draw down of the Additional Funds the Bridging
Loan, now totalling US$40.0 million, will be fully drawn down.
No arrangement fees are payable by the Company in connection
with the Additional Funds being made available to the Company under
the Bridging Loan Enlargement.
The other terms of the Bridging Loan, which carries an interest
rate of 12.0% per annum and is due for repayment on the earlier of:
(i) 15 days following the completion of a specific significant
financing of IIP currently under negotiation; and (ii) 29 June
2018.
The Company is currently in discussions with Cedar Valley with a
view to seeking an extension of the maturity of the Bridging
Loan.
Further announcements will be made, as appropriate, in due
course.
Related Party Transactions
GGIC is, directly and indirectly, interested in 75.4% of the
Company's issued share capital and Cedar Valley is an affiliate of
GGIC. Under the AIM Rules for Companies ("AIM Rules") Cedar Valley
is, therefore, deemed to be a related party of the Company and the
Bridging Loan Enlargement is a related party transaction pursuant
to Rule 13 of the AIM Rules. The independent directors of IIP, M.S.
Ramachandran and Timothy Walker, consider, having consulted with
Smith & Williamson Corporate Finance Limited in its capacity as
the Company's nominated adviser, that the terms of the Bridging
Loan Enlargement are fair and reasonable insofar as the
shareholders of IIP are concerned.
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
Enquiries:
Infrastructure India plc www.iiplc.com
Sonny Lulla
Smith & Williamson Corporate Finance Limited
Nominated Adviser & Joint Broker
Azhic Basirov / Ben Jeynes +44 (0) 20 7131 4000
Nplus1 Singer Advisory LLP
Joint Broker
James Maxwell - Corporate Finance
James Waterlow - Investment Fund Sales +44 (0) 20 7496 3000
Novella +44 (0) 20 3151 7008
Financial PR
Tim Robertson / Toby Andrews
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END
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