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LONDON (Alliance News) - Infrastructure India PLC Thursday said that Distribution Logistics Infrastructure Ltd (DLI), formerly known as Vikram Logistic and Maritime Services Ltd, entered into a restructuring agreement with the banks that make up its two lending consortia.
According to Infrastructure India's results for the year ended March 31, published last month, the company formerly known as Vikram was the largest holding in its portfolio.
The agreement follows Infrastructure India's USD102 million equity placing in August and provides a moratorium on principal payments until January 2016, reducing the overall combined interest rate to 12%. Those payments were previously more than 15.5%. It also extends the tenor.
The final repayment is now scheduled in 2027, providing a seven year extension over the previous final payment date. During the moratorium period interest payable will be converted into a funded interest term loan arranged by the lenders, Infrastructure India said.
The amount outstanding under the loan agreements in now INR5.02 million, about GBP51 million, with INR785 million, which is about GBP8.0 million, remaining undisbursed.
Under the deal, DLI will be refunded all principal and interest payments made after an agreed cut off date of February 1. The refunds amount to INR680 million, about GBP6.9 million.
The agreement provides DLI with an additional working capital facility of INR187 million, about GBP1.9 million, over a rolling 12-month period, Infrastructure India said.
The working capital facility currently carries an interest rate, calculated at a rate of 1.75% over a floating base rate, of 12%.
"The improved borrowing terms available to DLI under the agreement, together with the refund of interest and principal from the cut off date will provide DLI with additional flexibility in responding to customer demand by accelerating the implementation of private freight terminals, liquid storage and bulk handling facilities," Infrastructure India said in a statement.
Infrastructure India shares were untraded Thursday. The stock last traded at at 11.375 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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