Increase of Bridging Loan

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        Sonny Lulla	www.iiplc.com
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]
Novella	[phone]
Financial PR
Tim Robertson / Toby Andrews

 

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