New Asset Backed Debt Facility

RNS Number : 4113C

Infrastrata PLC

10 February 2020

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

10 February 2020

InfraStrata plc

("InfraStrata" or the "Company")

NEW ASSET BACKED DEBT FACILITY FOR HARLAND AND WOLFF AND

RESTRUCTURING OF CURRENT LOAN FACILITY

InfraStrata (AIM: INFA), the UK quoted company focused on strategic infrastructure projects and physical asset life-cycle management, is pleased to announce that its subsidiary, Harland and Wolff (Belfast) Limited ("Harland"), has secured a £2 million asset backed term debt facility (the "Facility").

Under the terms of the Facility, Harland will drawdown the sum of £2 million immediately and the proceeds will be utilised for working capital purposes. The Facility is for a term of 24 months with the principal amount repayable as a bullet payment at the end of 24 months from the date of first drawdown. The Facility carries a coupon of 13.2% per annum, payable in equal monthly instalments in arrears. The Lender of the Facility has a first charge over all the assets of Harland. At the end of the 24-month tenure of the Facility, there will be an exit fee of 4% payable to the lender. Belfast-based Whiterock Capital Partners LLP advised Harland on the structuring of this Facility.

In addition, the Company is pleased to announce the restructuring of the sum of £555,555.58 that remains outstanding, and was drawn down as the second tranche, of the £2.2 million loan facility with Riverfort Global Opportunities PCC Limited and YA II PN Limited (the "Investors") (the "Loan"). Details of this second drawdown under the Loan were announced on 14 November 2019. Under the restructuring, the Company will no longer be required to make a bullet repayment of £555,555.58 on 14 February 2020. Instead, a sum of £55,555.58 of the principal plus fees and accrued interest to date of, in aggregate, £110,624.98 will be paid to the Investors immediately, and the remaining £500,000 of principal ("Remaining Loan") will be amortised over a period of 10 months commencing 31 March 2020 and ending on 31 December 2020. The amortised payment schedule will carry an interest rate of 12% per annum from 14 February 2020, payable monthly in arrears. The Remaining Loan is not convertible into shares, save in the event of default.

Further, the final exercise dates for warrants issued to the Investors pursuant to the terms of the Loan, as announced on 1 October 2019 and 14 November 2019, have been extended to 1 October 2023 and 14 November 2023 respectively.

Save for the above, all other terms of the Loan remain the same.

John Wood, Interim Chairman and CEO of InfraStrata, said:  

"We are pleased to have now put in place a debt facility for Harland and restructured the second tranche of the loan facility that we drew down in order to fund part of the costs of the Harland acquisition. The introduction of this asset-backed debt facility validates our thesis of leveraging physical assets and creating cashflow sources. This has been possible due to the acquisition of Harland's physical assets, something that we would not have been able to achieve with the Company's portfolio of intangible assets."

**ENDS**

For further information, please visit www.infrastrataplc.com or contact:

InfraStrata plc John Wood, Chief Executive & Interim Chairman	c/o Newgate Communications [phone]
Allenby Capital Limited (AIM Nominated Adviser & Broker) Jeremy Porter / Liz Kirchner	[phone]
Arden Partners plc (Joint Broker) Paul Shackleton / Dan Gee-Summons (Corporate Finance) Simon Johnson (Corporate Broking)	[phone]
Newgate Communications (PR) Elisabeth Cowell/ Ian Silvera	[phone]

Notes to editors:

InfraStrata is a London Stock Exchange-quoted group focused on strategic infrastructure projects.

The rapid development of the 100% owned Islandmagee Gas Storage Project is a core workstream for InfraStrata. It is expected to provide 25% of the UK's natural gas storage capacity and to benefit the Northern Ireland economy as a whole when complete. Given that the Committee on Climate Change has advised that the UK will still need a significant quantity of natural gas by 2050 - about 70% of today's consumption - the market opportunity for this project is compelling.

The Company also owns and operates the assets of Harland & Wolff in Belfast, where it will undertake the fabrication work for the Islandmagee project, as well as establish secondary revenue streams through the provision of services to the energy, maritime and defence sectors should such opportunities arise in future.

Mindful of the fact that safe, secure and flexible sources of energy are needed for a sustainable future, InfraStrata is focused on providing investors with exposure to a growing portfolio of UK, European and international energy infrastructure projects. With this in mind, the Company's highly experienced team is focused on acquiring, developing and commercialising innovative infrastructure projects around the world. 

The Front-End Engineering & Design (FEED) and Insitu Downhole Testing programme for the Islandmagee Gas Storage Project is co-financed by the European Union's Connecting Europe Facility.

Disclaimer releasing the European Union from any liability in terms of the content of the dissemination materials:

"The sole responsibility of this publication lies with the author. The European Union is not responsible for any use that may be made of the information contained therein."

 

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