REG - Infrastructure India - Debt Facilities Update

Infrastructure IndiaAnnouncement

07/05/2024 07:15

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RNS Number : 3329N  Infrastructure India plc  07 May 2024

7 May 2024

 

Infrastructure India plc

("IIP" or the "Company" or, together with its subsidiaries, the "Group")

 

 Debt Facilities Update

 

Infrastructure India plc, an AIM quoted infrastructure fund investing directly
into assets in India, announces that it has agreed an extension to the
maturity dates of all its debt facilities, being the term loan provided by IIP
Bridge Facility LLC (the "Term Loan"), the working capital loan provided by
GGIC, Ltd. (the "Working Capital Loan") and the bridging loan provided by
Cedar Valley Financial (the "Bridging Loan"). The Term Loan has also been
increased by a further US$2.5 million for general working capital purposes and
funding of its underlying assets.

 

Each of IIP's lenders has agreed to extend the maturity date of the respective
loans to 15 July 2024 to accommodate the revised expected timeline to closing
a transaction for the sale of DLI. In addition, IIP has reached agreement with
IIP Bridge Facility LLC to increase its term loan by a further US$2.5 million,
taking the principal to US$121.5 million, for general working capital purposes
and funding of its underlying assets.

 

The Term Loan is currently a US$119 million principal secured facility
provided to IIP's wholly owned Mauritian subsidiary, Infrastructure India
Holdco, originally announced in April 2019. The loan carries an interest rate
of 15% per annum, calculated in a manner that yields a 15% IRR for the lender
and is secured on all assets of Infrastructure India Holdco, including 100% of
the issued share capital of Distribution Logistics Infrastructure India, DLI's
parent company. The current amount of interest accrued is approximately US$100
million. The maturity date of 15 May 2024 has been extended to 15 July 2024
(the "Maturity Extensions" applying collectively to all loan maturity
extensions set out in this announcement).

 

The unsecured Working Capital Loan was originally provided to the Group in
April 2013 by GGIC, Ltd. in an amount of US$17 million and increased
to US$21.5 million in September 2017. The Working Capital Loan carried an
interest rate of 7.5% per annum on its principal amount. The Group and GGIC,
Ltd. agreed to increase its interest rate to 15% per annum from 1 April
2019. The current amount of interest accrued is approximately US$32 million.
The maturity date of 15 May 2024 has been extended to 15 July 2024 (a
"Maturity Extension").

 

The unsecured Bridging Loan was originally provided to the Group in June 2017
by Cedar Valley Financial and was subsequently increased in multiple tranches
to US$64.1 million in March 2019.  The Bridging Loan carried an interest
rate of 12.0% per annum on its principal amount. The Group and Cedar Valley
Financial previously agreed to increase its interest rate to 15% per annum
from 1 April 2019. The current amount of interest accrued is approximately
US$66 million. The maturity date of 15 May 2024 has been extended to 15 July
2024 (a "Maturity Extension").

 

The Company will make a further announcement in due course.

 

Related Party Transaction

 

IIP Bridge Facility LLC and Cedar Valley Financial are affiliates of GGIC,
Ltd., which is, directly and indirectly, interested in 75.4% of the Company's
issued share capital. Under the AIM Rules for Companies (the "AIM Rules"), IIP
Bridge Facility LLC, Cedar Valley Financial and GGIC, Ltd. are each,
therefore, deemed to be related parties of the Company, and the Term Loan
increase and the Maturity Extensions are related party transactions pursuant
to Rule 13 of the AIM Rules.

 

The independent directors of IIP, being M.S. Ramachandran and Graham Smith,
consider, having consulted with Strand Hanson Limited in its capacity as the
Company's nominated adviser, that the  increase in the Term Loan and the
Maturity Extensions are fair and reasonable insofar as the shareholders of IIP
are concerned.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended.

 

 

- Ends -

 

Enquiries:

 Infrastructure India plc                 www.iiplc.com (http://www.iiplc.com/)

 Sonny Lulla                              Via Novella

 Strand Hanson Limited                    +44 (0) 20 7409 3494

 Nominated Adviser

 James Dance / Richard Johnson

 Singer Capital Markets                   +44 (0) 20 7496 3000

 Broker

 James Maxwell - Corporate Finance

 James Waterlow - Investment Fund Sales

 Novella                                  +44 (0) 20 3151 7008

 Financial PR

 Tim Robertson / Safia Colebrook

 

 

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