Infrastructure India plc Increase of Bridging Loan (8001Q)
February 21 2019 - 11:44AM
UK Regulatory
TIDMIIP TIDMTTM
RNS Number : 8001Q
Infrastructure India plc
21 February 2019
21 February 2019
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$3.2 million increase to the existing US$53.4 million
unsecured bridging loan facility (the "Bridging Loan") originally
provided to the Company in June 2017 by Cedar Valley Financial (the
"Bridging Loan Increase").
Following the lapsing of the Company's previously announced
proposed financing on 30 January 2019, the Board of IIP is
continues to examine the Company's funding alternatives, including
re-engaging with PSA International and Gateway Partners. The
Bridging Loan Increase will provide the Group with additional
short-term capital for working capital purposes.
As at 31 January 2019, IIP had unaudited cash balances of
approximately GBP1.3 million. Both the Bridging Loan and the
US$21.5 million working capital loan originally provided to the
Company in April 2013 by GGIC, Ltd ("GGIC") mature on 1 April 2019.
IIP is expected to require access to additional funding prior to 1
April 2019.
Bridging Loan Increase
The Bridging Loan was originally provided to the Company in June
2017 by Cedar Valley in an amount of US$8.0 million and has been
subsequently increased in multiple tranches. The Bridging Loan
currently carries an interest rate of 12.0% per annum and is due
for repayment by the Company on the earlier of: (i) 15 days
following the completion of a financing; or (ii) 1 April 2019.
Pursuant to the Bridging Loan Increase, a further US$3.2 million
(the "Additional Funds") has been made available to the Company.
The Company intends to draw down the Additional Funds immediately.
On draw down of the Additional Funds, the Bridging Loan, now
totaling US$56.6 million, will be fully drawn down.
A fee equal to 1% of the Additional Funds drawn down is payable
by IIP to Cedar Valley Financial on drawn down.
The other terms of the Bridging Loan remain unchanged.
Related Party Transaction
GGIC is, directly and indirectly, interested in 75.4% of the
Company's issued share capital and Cedar Valley Financial is an
affiliate of GGIC. Under the AIM Rules for Companies ("AIM Rules")
Cedar Valley Financial is, therefore, deemed to be a related party
of the Company and the Bridging Loan Increase 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 Cenkos Securities plc in its capacity as the
Company's nominated adviser, that the terms of the Bridging Loan
Increase 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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