Infrastructure India plc Increase of Bridging Loan (8221E)

TIDMIIP TIDMTTM

RNS Number : 8221E

Infrastructure India plc

23 October 2018

23 October 2018

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$1 million increase of the existing US$45.4 million unsecured bridging loan facility previously provided to the Company by Cedar Valley Financial (the "Bridging Loan").

The enlargement of the Bridging Loan will provide the Group with additional capital ahead of completion the conditional proposed financing with PSA International and Gateway Partners as detailed in the Company's announcement dated 31 July 2018 (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.

The Proposed Financing will enable the Company to partially repay the Bridging 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.

The Company remains in discussions with Cedar Valley Financial ("Cedar Valley") and GGIC, Ltd ("GGIC") in relation to the possible partial repayment of the Bridging Loan and the existing US$21.5 million working capital loan provided to the Company by GGIC 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.

Enlargement of Bridging Loan

The Company announces that it has agreed a further increase to the Bridging Loan which was previously provided to the Company by Cedar Valley such that a further US$1 million (the "Additional Funds") has been made available to the Company under the Bridging Loan (the "Bridging Loan Enlargement").

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 a number of tranches, most recently to US$45.4 million in September 2018.

The Company intends to draw down the Additional Funds immediately. On draw down of the Additional Funds the Bridging Loan, now totalling US$46.4 million, will be fully drawn down.

Under the Bridging Loan Enlargement the Company will pay to Cedar Valley a fee of 1 per cent. of the Additional Funds provided to the Company.

The other terms of the Bridging Loan, which carries an interest rate of 12.0% per annum and is due for repayment on the earlier of: (i) 15 days following the completion of the Proposed Financing; and (ii) 18 November 2018.

Further announcements will be made, as appropriate, in due course.

Related Party Transaction

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") Cedar Valley is, therefore, deemed to be a related party of the Company and the Bridging Loan Enlargement 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 Smith & Williamson Corporate Finance Limited in its capacity as the Company's nominated adviser, that the terms of the Bridging Loan Enlargement 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 
 
 
  Smith & Williamson Corporate Finance Limited 
   Nominated Adviser & Joint Broker 
   Azhic Basirov / Ben Jeynes                      [phone] 
 
 
  Nplus1 Singer Advisory LLP 
   Joint Broker 
   James Maxwell - Corporate Finance 
   James Waterlow - Investment Fund Sales          [phone] 
  Novella                                          [phone] 
  Financial PR 
  Tim Robertson / Toby Andrews 
 
 
 
 

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October 23, 2018 02:00 ET (06:00 GMT)