REG - Infrastructure India - Suspension and Board & Debt Facilities Updates

Infrastructure IndiaAnnouncement

16/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240716:nRSP4941Wa&default-theme=true

RNS Number : 4941W  Infrastructure India plc  16 July 2024

16 July 2024

 

Infrastructure India plc

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

 

Suspension and Board & Debt Facilities Updates

Infrastructure India plc, an AIM quoted infrastructure fund investing directly
into assets in India, notifies that following the director resignation
announced on 12 July 2024, the Board, which comprises two directors, is no
longer quorate under the Company's articles of association ("Articles") and is
therefore not able to operate effectively under the Articles, with the powers
of the directors limited to the appointment of additional directors or the
convening of a general meeting for the purpose of making such appointment. The
Company is exploring the Board composition and a further announcements will be
made, as appropriate, in due course.

 

Accordingly, the Company has requested that trading in the Company's shares on
AIM be suspended with effect from 07.30 a.m. today, 16 July 2024 pending,
inter alia, the appointment of at least one additional director.

 

Notwithstanding the suspension of trading in the Company's shares, the Company
will continue to make notifications as and when there are matters requiring
disclosure in accordance with the Company's obligations under the AIM Rules
for Companies and/or the UK Market Abuse Regulation.

 

Debt Facilities

 

The Debt Facilities include 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" and, together with the Term Loan and the
Working Capital Loan, the "Debt Facilities").

 

All of the Group's lenders have agreed to a maturity extension, however, due
to the limitations on the powers of the Board, as set out above, IIP is unable
to enter into agreements with the lenders. Consequently, all parties have
agreed to remain in discussion regarding the path forward, whilst IIP reviews
its board composition.

 

The Term Loan is a US$121.5 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$107
million. The maturity date was 15 July 2024.

 

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$33 million.
The maturity date was 15 July 2024.

 

The unsecured Bridging Loan was originally provided to the Group in June 2017
by Cedar Valley Financial ("Cedar Valley") 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$70 million. The maturity date was 15 July 2024.

 

Disposal Updates

 

Further to the announcement on 7 May 2024, the Company is in advanced
discussions with a third party with regard to the proposed sale of
Distribution Logistics Infrastructure Private Limited ("DLI"), and, further to
the announcement on 28 May 2024, the Company is in discussions with a third
party with regard to the proposed sale of IEL. However, there can be no
guarantee that either discussions will lead to definitive agreements for the
sale of DLI or IEL. Further announcements will be made in due course.

 

 

 

 

 

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

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCDBGDRCDBDGSU