Extension of Loan Facility

RNS Number : 5651K

Infrastructure India plc

26 June 2014

 



26 June 2014

Infrastructure India plc

("IIP" or the "Company" or, together with its subsidiaries, the "IIP Group")

Extension of Loan Facility

Infrastructure India plc, the infrastructure fund investing directly into assets in India, is pleased to announce that, on 25 June 2014, it entered into an agreement to amend its US$8.1 million unsecured loan facility with Cedar Valley Financial, Ltd. ("Cedar Valley") announced on 7 May 2014 (the "Original Facility").

Cedar Valley has agreed to provide the Company with an additional US$8.1 million loan facility on the same terms as the Original Facility (the "New Facility" and together with the Original Facility the "Enlarged Facility").

Under the New Facility the Company may request one or more loans (each a "Loan" and together the "Loans") in a number of advances of no less than US$1 million each. The Enlarged Facility, with an aggregate principal of US$16.2 million, has a final maturity date of 3 November 2014 (the "Maturity Date") and attracts an interest rate of 15% per annum, payable on the Maturity Date. An arrangement fee of US$81,000 is payable in respect of the New Facility.

The Company intends to use the majority of the proceeds from the New Facility for investment into its subsidiary Vikram Logistic and Maritime Services Private Limited ("VLMS") to meet the immediate financial and working capital needs of VLMS. The Company is actively exploring various avenues of funding for IIP and VLMS and will update shareholders, as appropriate, in due course. The Company is required to repay the New Facility from the proceeds of any capital raising of the Company or its subsidiaries, and intends to repay the Enlarged Facility from the proceeds of any permanent financing it may be able to obtain for VLMS.

Related Party Transaction

Cedar Valley is an affiliate of GGIC, Ltd ("GGIC"). GGIC is, directly and indirectly, interested in 51.17% of the Company's issued share capital.  Under the AIM Rules for Companies ("AIM Rules"), Cedar Valley is, therefore, deemed to be related party of the Company and the New Facility is a related party transaction pursuant to Rule 13 of the AIM Rules. The independent directors of IIP (being the directors of IIP excluding Tom Tribone, Sonny Lulla and Rob Venerus) consider, having consulted with Smith & Williamson Corporate Finance Limited in its capacity as the Company's nominated adviser, that the terms of the New Facility are fair and reasonable insofar as the shareholders of IIP are concerned.

Enquiries:

Infrastructure India plc	www.iiplc.com
Sonny Lulla	Via Instinctif Partners
Smith & Williamson Corporate Finance Limited	[phone]
Nominated Adviser & Joint Broker
Azhic Basirov / Ben Jeynes
Nplus1 Singer Advisory LLP	[phone]
Joint Broker
Gillian Martin - Corporate Finance James Waterlow - Investment Fund Sales
Peat & Co.	[phone]
Joint Broker
Charlie Peat / John Beaumont
Instinctif Partners	[phone]
Financial Public Relations
Toby Bates/Tom Drummond

 

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