Extensions of Existing Loans

RNS Number : 2155R

Infrastructure India plc

19 September 2017

 

19 September 2017

Infrastructure India plc

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

Extensions of Working Capital Loan and Bridging Loan

Infrastructure India plc, an AIM quoted infrastructure fund investing directly into assets in India, announces that it has agreed a further extension of, and increase in, the US$17 million working capital loan facility (the "Existing Loan") provided to the Company in April 2013 by GGIC, Ltd ("GGIC") and an extension of the US$8.0 million unsecured bridging loan facility (the "Bridging Loan") with Cedar Valley Financial ("Cedar Valley"), an affiliate of GGIC.

The extension of the Existing Loan and the Bridging Loan will enable the Company to continue to progress its ongoing financing discussions.

Further to the Company's announcement of 8 August 2017, the Company also announces that it is now in advanced and exclusive negotiations with a third party provider of finance in relation to a potential financing. The new funding would enable the Company to repay the Existing Loan and 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.

Extension of Existing Loan

The Company announces that it has agreed a further extension of the Existing Loan which was previously provided to the Company by GGIC such that a further US$4.5 million has been made available to the Company under the Existing Loan and that the maturity date of the Existing Loan has been extended from 30 September 2017 to 31 December 2017 (the "Loan Extension"). The additional US$4.5 million has been immediately drawn down by the Company and the Existing Loan, now totalling US$21.5 million, is fully drawn down and carries an interest rate of 7.5% per annum.

The interest payment which would have been due under the Existing Loan on 30 September 2017, together with the additional interest accrued from then until 31 December 2017, has been deferred to 31 December 2017.

There are no arrangement or commitment fees payable by the Company in relation to the Loan Extension.

Extension of Bridging Loan

The Company also announces that it has agreed an extension of the Bridging Loan such that the backstop date for the maturity of the Bridging Loan has been extended from 30 September 2017 to 31 December 2017 (the "Bridging Loan Extension"). The Bridging Loan, which carries an interest rate of 8.0% per annum (payable in cash on maturity), is fully drawn down and will now mature, together with interest due under the Bridging Loan at maturity, on the earlier of: (i) on demand by Cedar Valley; and (ii) 31 December 2017.

There are no arrangement or commitment fees payable by the Company in relation to the Bridging Loan Extension.

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"), GGIC and Cedar Valley are, therefore, deemed to be related parties of the Company and the Loan Extension and the Bridging Loan Extension are related party transactions 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 Loan Extension and the Bridging Loan Extension 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        Sonny Lulla	www.iiplc.com Via Cubitt Consulting
Smith & Williamson Corporate Finance Limited Nominated Adviser & Joint Broker Azhic Basirov / Ben Jeynes	[phone]
Nplus1 Singer Advisory LLP Joint Broker James Maxwell - Corporate Finance James Waterlow - Investment Fund Sales	[phone]
Cubitt Consulting Limited Financial Public Relations Simon Brocklebank-Fowler	[phone]

 

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