Infrastructure India plc Extension of Existing Loans (5259X)
November 27 2017 - 1:00AM
UK Regulatory
TIDMIIP TIDMTTM
RNS Number : 5259X
Infrastructure India plc
27 November 2017
27 November 2017
Infrastructure India plc
("IIP", the "Company" and together with its subsidiaries the
"Group")
Extensions of Bridging Loan and Working Capital 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$8.0 million
unsecured bridging loan facility (the "Bridging Loan") provided to
the Company in June 2017 by Cedar Valley Financial ("Cedar
Valley"); and (ii) an extension of an existing US$21.5 million
working capital loan facility (the "Working Capital Loan") with
GGIC, Ltd ("GGIC").
The extension of the Bridging Loan and the Working Capital Loan
will enable the Company to continue to progress its ongoing
financing discussions.
The Company continues to be in advanced negotiations with a
third party in relation to a potential financing. Whilst
negotiations have taken longer than had been anticipated, these
discussions continue to progress. The new funding would enable the
Company to repay the Bridging Loan and the Working Capital 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 Bridging Loan
The Company announces that it has agreed a further extension of
the Bridging Loan which was previously provided to the Company by
Cedar Valley such that a further US$10.0 million has been made
available to the Company under the Bridging Loan (the "Additional
Funds") and that the maturity date of the Bridging Loan has been
extended from on the earlier of: (i) on demand by Cedar Valley; and
(ii) 31 December 2017 to the earlier of (i) fifteen days after the
completion of the potential financing currently under negotiations;
and (ii) 29 June 2018 (the "Bridging Loan Extension").
The additional US$10.0 million has been immediately drawn down
by the Company and the Bridging Loan, now totalling US$18.0
million, is fully drawn down.
The Company has paid Cedar Valley a fee of 1.0% of the
Additional Funds in connection with the Bridging Loan Extension and
the interest rate on the Bridging Loan has increased from 8.0% per
annum to 12.0% per annum.
The interest payment which would have been due under the
Bridging Loan on 31 December 2017, together with the additional
interest accrued from then until maturity of the Bridging Loan has
been deferred until repayment of the Bridging Loan in accordance
with the revised maturity.
Extension of Working Capital Loan
The Company also announces that it has agreed an extension of
the Working Capital Loan such that the maturity of the Working
Capital Loan has been extended from 31 December 2017 to 15 July
2018 (the "Working Capital Loan Extension"). The Working Capital
Loan, which carries an interest rate of 7.5% per annum (payable in
cash on maturity), is fully drawn down and will now mature on 15
July 2017.
There are no arrangement or commitment fees payable by the
Company in relation to 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 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
Smith & Williamson Corporate Finance Limited in its capacity as
the Company's nominated adviser, that the terms of the Bridging
Loan Extension and the Working 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 Via Cubitt Consulting
Smith & Williamson Corporate Finance Limited
Nominated Adviser & Joint Broker
Azhic Basirov / Ben Jeynes +44 (0) 20 7131 4000
Nplus1 Singer Advisory LLP
Joint Broker
James Maxwell - Corporate Finance
James Waterlow - Investment Fund Sales +44 (0) 20 7496 3000
Cubitt Consulting Limited
Financial Public Relations
Simon Brocklebank-Fowler +44 (0) 20 7367 5100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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