Infrastructure India plc Loan Extensions (4344M)
January 08 2019 - 2:00AM
UK Regulatory
TIDMIIP TIDMTTM
RNS Number : 4344M
Infrastructure India plc
08 January 2019
8 January 2019
Infrastructure India plc
("IIP", the "Company" and together with its subsidiaries the
"Group")
Loan Extensions
Infrastructure India plc, an AIM quoted infrastructure fund
investing directly into assets in India, announces that it has
agreed the extensions to the maturity of: (i) an existing US$48.4
million unsecured bridging loan facility (the "Bridging Loan")
originally provided to the Company in June 2017 by Cedar Valley
Financial ("Cedar Valley"); and (ii) an existing US$21.5 million
working capital loan (the "Working Capital Loan") originally
provided to the Company in April 2013 by GGIC, Ltd ("GGIC").
IIP announced on 31 July 2018, that it had entered into
conditional proposed financing agreements for up to US$125 million
with PSA International, a global port group, and Gateway Partners
(the "Proposed Financing"). The transaction includes the issue of
convertible preference shares in Distribution Logistics
Infrastructure India, Distribution Logistics Infrastructure
Limited's ("DLI") parent company, for a consideration of US$75
million and the sale of 24% of DLI by the Group for a consideration
of US$50 million (the "Proposed Financing").
Following IIP shareholder approval of the Proposed Financing at
an extraordinary general meeting on 24 August 2018, the parties
continue to progress towards completion of that transaction, with
several conditions precedent to the closing having been met and the
remainder, including key governmental approvals, expected to be met
in the coming weeks.
Ahead of completion of the Proposed Financing, IIP has agreed an
extension to the maturity date of the Bridging Loan (the "Bridging
Loan Extension") and an extension to the maturity date of the
Working Capital Loan (the "Working Capital Loan Extension") to 21
January 2019.
The Company remains in discussions with Cedar Valley and GGIC in
relation to the possible partial repayment of the Bridging Loan
and/or the Working Capital Loan following the completion of the
Proposed Financing and with a view to further extending the
maturity of both the Bridging Loan and the Working Capital
Loan.
As a result of the continued delays in completion of the
Proposed Financing and IIP's current inability to commit additional
funding to DLI (IIP's unaudited cash balances as at 31 December
2018 were approximately GBP0.25m), DLI has recently entered into
short term borrowing facilities in India and, in part, has begun to
divert cash from operations in order to service DLI debt
facilities. This latter action could affect DLI's operational
performance in the short term.
Bridging Loan Extension
The Bridging Loan was originally provided to the Company in June
2017 by Cedar Valley in an amount of US$8.0 million and was
subsequently increased in multiple tranches, most recently to
US$48.4 million in October 2018.
The Bridging Loan currently carries an interest rate of 12.0%
per annum on its fully drawn US$48.4 million principal and had been
due for repayment by the Company on the earlier of: (i) 15 days
following the completion of the Proposed Financing; or (ii) 7
January 2019.
Pursuant to the Bridging Loan Extension, the Company and Cedar
Valley have agreed to extend the maturity of the Bridging Loan such
that the Bridging Loan will now mature on the earlier of: (i) 15
days following the completion of the Proposed Financing; or (ii) 21
January 2019. The other terms of the Bridging Loan remain
unchanged.
Working Capital Loan Extension
The Working Capital Loan was originally provided to the Company
in April 2013 by GGIC in an amount of US$17 million in April 2013
and increased to US$21.5 million in September 2017.
The Working Capital Loan currently carries an interest rate of
7.5% per annum on its fully drawn down US$21.5 million principal
and had been due for repayment by the Company on 7 January
2019.
Pursuant to the Working Capital Loan Extension, the Company and
GGIC have agreed to extend the maturity of the Working Capital Loan
such that the Working Capital Loan will now mature on 21 January
2019. The other terms of the Working Capital Loan remain
unchanged.
There are no arrangement or commitment fees payable by IIP in
connection with the Bridging Loan Extension or the Working Capital
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 a related parties of the
Company and the Bridging Loan Extension and the Working Capital
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
Cenkos Securities plc in its capacity as the Company's nominated
adviser, that the terms of the Bridging Loan Extension and the
Working Capital 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 www.iiplc.com
Sonny Lulla
Cenkos Securities plc
Nominated Adviser & Joint Broker
Azhic Basirov / Ben Jeynes +44 (0) 20 7397 8900
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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