Infrastructure India plc announces that it has agreed an extension of the US$17 million working capital loan facility provided to the Company in April 2013 such that the maturity date of the Loan has been extended to 9 June 2017. The Company does not currently have sufficient cash resources to repay the Loan.
The Loan, which is fully drawn down and was first announced by the Company on 9 April 2013, was provided to the Company by GGIC, Ltd (“GGIC”), carries an interest rate of 7.5% per annum and was originally due to be repaid by the Company on 10 April 2017. Under the Loan Extension, the maturity date of the Loan has been extended to 9 June 2017 and the interest payment which would have been due under the Loan on 10 April 2017 has been deferred to 9 June 2017. The other terms of the Loan are unchanged.
The Loan Extension will enable the Company to continue its discussions with GGIC in relation to refinancing the Loan and with respect to the Company’s other capital needs.
Related Party Transaction
GGIC is, directly and indirectly, interested in 75.4% of the Company’s issued share capital. Under the AIM Rules for Companies (“AIM Rules”), GGIC is, therefore, deemed to be related party of the Company and the Loan Extension 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 Loan Extension are fair and reasonable insofar as the shareholders of IIP are concerned.
A further announcement will be made, as appropriate, in due course
Update 30 June 2017
Infrastructure India has agreed a further extension of the US$17 million working capital loan facility and has agreed a US$8.0 million unsecured bridging loan facility with Cedar Valley Financial, an affiliate of GGIC.
The extension of the Existing Loan and the Bridging Loan will enable the Company to continue to progress its ongoing discussions with GGIC and its affiliates in relation to the provision of new funding which would enable the Company to repay the Existing Loan and the Bridging Loan, provide additional working capital and construction capital to Distribution Logistics Infrastructure Limited, a key subsidiary of the Company, and to meet the group’s general working capital needs.
Extension of Existing Loan
The maturity date of the Existing Loan has been extended from 10 July 2017 to 30 September 2017. The Existing Loan is fully drawn down and carries an interest rate of 7.5% per annum. The interest payment which would have been due under the Existing Loan on 10 July 2017, together with the additional interest accrued from then until 30 September 2017, has been deferred to 30 September 2017. There are no arrangement or commitment fees payable by the Company in relation to the Loan Extension.
Bridging Loan
The company has entered into an US$8.0 million unsecured bridging loan facility with Cedar Valley. The Bridging Loan, which carries an interest rate of 8.0% per annum (payable in cash on maturity), is available to the Company in a single draw down on 30 June 2017 and will be used to provide additional working capital to the Group. The Bridging Loan matures on the earlier of: (i) any time after 45 days from the date of the Bridging Loan agreement, on demand by Cedar Valley; and (ii) 30 September 2017. There are no arrangement or commitment fees payable by the Company in relation to the Bridging Loan.
IIP : Infrastructure India can’t pay back working capital loan