Last checked at 18 Feb 2019 15:15
18 February 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$53.4 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"), to 1 April 2019.
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.
As at 31 January 2019, IIP had unaudited cash balances of approximately £1.3 million. IIP is expected to require access to additional funding prior to 1 April 2019.
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$53.4 million in January 2019.
The Bridging Loan currently carries an interest rate of 12.0% per annum on its fully drawn US$53.4 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) 18 February 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) 1 April 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 18 February 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 1 April 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 Sonny Lulla
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www.iiplc.com
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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 | |