Infrastructure India increases loan by $3.2 million to $56.6 million

By Devika Patel

Knoxville, Tenn., Feb. 21 – Infrastructure India plc increased its unsecured bridging loan facility with Cedar Valley Financial by $3.2 million to $56.6 million from $53.4 million.

Once the company draws down the additional $3.2 million, the facility will be fully drawn.

As previously reported on Feb. 19, the company extended the maturity of the facility and a $21.5 million working capital loan.

Following the lapsing of the company’s proposed financing on Jan. 30, the board continues to examine the company’s funding alternatives, including re-engaging with PSA International and Gateway Partners.

As of Jan. 31, the company had about £1.3 million of unaudited cash balances.

The bridging loan was originally provided to the company in June 2017 by Cedar Valley in an amount of $8 million and was subsequently increased in multiple tranches, most recently to $53.4 million in January.

The bridging loan currently carries an interest rate of 12% and had been due for repayment on the earlier of 15 days following the completion of the proposed financing and Feb. 18, 2019.

The company and Cedar Valley agreed to extend the maturity of the bridging loan to the earlier of 15 days following the completion of the proposed financing and April 1, 2019.

The working capital loan was originally provided to the company in April 2013 by GGIC in an amount of $17 million and increased to $21.5 million in September 2017.

The working capital loan currently carries an interest rate of 7½% and had been due for repayment on Feb. 18, 2019.

The company and GGIC agreed to extend the maturity of the working capital loan to April 1, 2019.

The company did not pay any arrangement or commitment fees in connection with the extensions.

In September, the maturity of the bridging loan was extended to the earlier of 15 days following the completion of the proposed financing and Oct. 18, 2018, and the maturity of the working capital loan was extended to Oct. 18, 2018 from Sept. 17, 2018.

The bridging loan had previously been due for repayment on the earlier of 15 days following the completion of the proposed financing and Sept. 17, 2018.

The company previously announced that it had entered into conditional proposed financing agreements for up to $125 million with PSA International and Gateway Partners. The transaction includes the issue of convertible preference shares in Distribution Logistics Infrastructure India for a consideration of $75 million and the sale of 24% of Distribution Logistics Infrastructure Ltd. by the group for a consideration of $50 million.

The Isle of Man-based closed-end investment company invests directly into assets in India.

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