REG - Infrastructure India - Update on Debt Facility and Disposal

Infrastructure IndiaAnnouncement

29/02/2024 13:00

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RNS Number : 0101F  Infrastructure India plc  29 February 2024

29 February 2024

 

Infrastructure India plc

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

 

 DLI Disposal and Debt Facilities Update

Infrastructure India plc, an AIM quoted infrastructure fund investing directly
into assets in India, provides updates in respect of the potential disposal of
the Group's interest in 99.99% of Distribution Logistics Infrastructure
Private Limited ("DLI") and its Debt Facilities (as defined below) .

 

Potential DLI Disposal Update

 

Further to the announcement on 15 February 2024, the Company is in early
discussions with a third party with regard to the proposed sale of DLI and is
evaluating the potential transaction and related timelines, although there can
be no guarantee that discussions will lead to definitive agreements for the
sale of DLI. Further announcements will be made in due course.

 

Debt Facilities Update

 

On 15 January 2024, IIP notified the extension of the maturity date for the
Debt Facilities to 29 February 2024. Recent maturity date extensions agreed
with the Debt Facilities lenders ("Lenders") had been related to the expected
timetable for the completion of the disposal of DLI, which was terminated on
15 February 2024.

 

IIP is in discussions with the Lenders with regard to a further extension to
the maturity date of the Debt Facilities and the principal lender has agreed
to an extension until 15 May 2024, with documentation expected to be finalised
shortly. The Company's expectation of timelines in respect of the potential
DLI transaction is relevant to these discussions.

 

A further announcement will be made in due course.

 

Information on the 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").

 

The Term Loan is 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$95million.

 

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$31 million.

 

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$63 million.

 

 

 

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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