GMR Infra refinances $737 million bridge loan ahead of sale of InterGen

Bangalore-based infrastructure firm GMR Infra today re-financed its bridge loan of $737 million, which it had raised to acquire a stake in InterGen and was due for repayment in October this year.

This refinancing well ahead of the repayment due date, could possibly be linked to GMR's reported plan of selling its InterGen stake.

The debt, which will now be due for repayment after five years, was refinanced by the company through a combination of senior and mezzanine debt from a consortium of banks led by Axis Bank and ICICI Bank, as well as Bank of India, Bank of Baroda, Canara Bank, Exim Bank, Indian Bank, Indian Overseas Bank and Syndicate Bank.

"Despite increasing spreads in the foreign currency markets, the pricing was achieved on competitive terms for a longer tenor of five years," said GMR in a statement.

In 2008, GMR Infrastructure acquired a 50-per cent stake in the Netherlands-based power generation company InterGen N V for $954 million from AIG Highstar Capital II, L P, a private equity fund sponsored by AIG Global Investment Group, an indirect subsidiary of the stricken American International Group, Inc. (See: GMR acquires 50-per cent stake in InterGen for $954 million)

GMR had funded the acquisition through a short-term bridge loan for two years from Axis Bank, ICICI Bank, Bank of India, Canara Bank, Bank of Baroda and Indian Bank.
Late last month, The Wall Street Journal reported citing people familiar with the matter that GMR Infrastructure is planning to sell its stake in InterGen and is seeking buyers who are willing to pay around $1 billion. (See: GMR Infrastructure mulls selling stake in InterGen NV: report)