IBI Group Inc. Announces Debentureholder Approval of Debenture Amendments

TORONTO, July 16, 2014 /CNW/ - IBI Group Inc. ("IBI" or the "Company") (TSX: IBG) is pleased to announce that the holders of its 7.0% convertible unsecured subordinated debentures (the "Debentures") have approved the proposed amendments to the Debentures (the "Debenture Amendments") at the special meeting of debentureholders held today. As a result, the maturity date of the Debentures will be extended from December 31, 2014 to June 30, 2019 for all Debentureholders. Approximately 71.2% of the aggregate principal amount of the Debentures were represented at the meeting in person or by proxy.

"The successful passage of the Debenture Amendments marks an important milestone in IBI Group's recapitalization plan and we thank debentureholders for their support. The extension will allow IBI Group the time we need to continue executing our strategic initiatives," said Scott Stewart, Chief Executive Officer of IBI Group. "We are pleased that our efforts to-date have produced operational improvements, growth in committed work for 2014 and beyond, and a renewed and refocused company. The Board and management of the Company intend to continue pursuing a strategy focused on long-term value creation for the benefit of all security holders."

Debentureholders who delivered and did not withdraw a valid proxy voting for the Debenture Amendments prior to the proxy deadline will receive, based on their election, either:

  • Option A - Promissory Note:  A consent fee, consisting of an unsecured, non-convertible promissory note equal to $195.65 per $1,000 principal amount of Debentures, payable December 31, 2016 and bearing interest at the rate of 7.0% per annum and payable on maturity; or

  • Option B - Promissory Note + Reduced Conversion Price: (i) A consent fee, consisting of an unsecured, non-convertible promissory note equal to $86.96 per $1,000 principal amount of Debentures, payable December 31, 2016 and bearing interest at the rate of 7.0% per annum and payable on maturity and (ii) the reduction of the conversion price for the Debentures to $5.00 per common share from $19.17 per common share.

Debentureholders who did not deposit a proxy, abstained from voting on the Debenture Amendments or voted against the Debenture Amendments, will receive the benefit of the reduction of the conversion price to $5.00 per share from $19.17 per share.

The consent fee will be issued to eligible Debentureholders as soon as practicable following confirmation of their entitlements.

About IBI Group Inc.:

The Company is a TSX listed corporation and its common shares trade under the symbol "IBG".

IBI Group is a globally integrated architecture, planning, engineering, and technology firm with over 2,600 professionals around the world. For more than 40 years, our dedicated professionals have helped clients create livable, sustainable, and advanced urban environments. We are one of the largest architecture firms in the world, and more than 300 of our staff architects, planners, designers and engineers are LEED accredited.

From high-rises to industrial buildings, schools to state-of-the-art hospitals, transit stations to highways, airports to toll systems, bike lanes to parks, we design every aspect of a truly integrated city for people to live, work, and play.

We organize our expertise into three areas:

  1. Intelligence: systems designer, software development.
  2. Buildings: building architecture, building engineering (mechanical, structural, electrical).
  3. Infrastructure: planning, urban design, landscape architecture, transportation, and engineering.

Our collaborative and combined approach focuses not only on creating the best solutions today, but also creating the right solutions for tomorrow.

We believe cities must be designed with intelligent systems, sustainable buildings, efficient infrastructure, and a human touch.

At IBI, we're defining the cities of tomorrow.

SOURCE: IBI Group Inc.

For further information:

Stephen Taylor  
IBI Group Inc. 
230 Richmond Street West, 5th Floor 
Toronto, ON M5V 1V6  
Tel: 416-596-1930, Fax: 416-596-8024

Security holders:

CST Phoenix Advisors 
North American Toll Free: 1-800-332-6179 
Banks, Brokers, and Collect Calls: 201-806-2222 
Toll Free Facsimile: 1-888-509-5907 
Email: inquiries@phoenixadvisorscst.com


Riyaz Lalani
Bayfield Strategy, Inc.

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IBI Group Inc.

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