Imvescor Restaurant Group Inc. announces completion of refinancing transaction

MONCTON, N.B., Aug. 31, 2012 /CNW/ - Imvescor Restaurant Group Inc. ("IRG" or the "Company") (TSX: IRG) announced today the completion of a refinancing of its senior credit facility with GE Capital, Canada ("GE Capital"). IRG's new credit facility from GE Capital consists of a $37.1 million term loan, maturing in August 2015.

The proceeds of the new credit facility have been applied to fully repay the Company's existing fixed rate senior debt facilities and two third-party loans, totalling $37.1 million. The new credit facility provides for a BA floating rate structure with an option to convert to a fixed rate. Subject to any fluctuations in the BA rate, this new facility should materially reduce the Company's overall borrowing cost, representing significant interest expense savings over the term of the loan.

The new credit facility also provides the Company with additional flexibility to pay down its existing outstanding subordinated debentures.

"We are very pleased to announce a renewed relationship with GE Capital, following a rigorous market canvass. Our new credit facility not only lowers our financing costs and improves our overall capital structure, but more importantly it marks a turning point for the Company in that we are now in a position to concentrate all of our energies towards the execution of our strategic initiatives", said Denis Richard, President and Chief Executive Officer of IRG. "We believe that our continued focus on de-leveraging the Company over the next few years combined with ongoing strategic operating initiatives will create a solid foundation for shareholder value creation" added Mr. Richard.

In addition, on July 19, 2012, the Company entered into a First Supplemental Indenture to the Warrant Indenture dated December 29, 2011 (the "Indenture"), thereby removing the cashless exercise option which was previously granted in favor the warrant holders under the Indenture. Such removal of the cashless exercise option eliminates the non-cash financial impact from measuring the warrants at fair value under International Financial Reporting Standards at each reporting period.

About Imvescor Restaurant Group Inc.
Headquartered in Moncton, New Brunswick, Imvescor Restaurant Group Inc. owns franchised and corporate restaurants throughout Canada under four brands: Pizza Delight®, operating primarily in Atlantic Canada, where it dominates the family/mid-scale segment, Mikes® and Scores®, operating primarily in Quebec in the family and casual dining segments and the take-out and delivery segments, and Bâton Rouge®, operating in Quebec, Ontario, and Nova Scotia in the casual dining segment.

Cautionary Note Regarding Forward-Looking Statements
Certain information in this press release regarding the Company, including, but not limited to, the Company's business objectives, strategies and priorities, the generation of cash flows, the growth of the same store sales, and other statements that are not historical facts, are "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements can generally be identified by words such as "may", "should", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "outlook" and similar expressions. All such forward-looking statements are made pursuant to the "safe harbour" provisions of applicable securities laws. These statements are based on information currently available to the Company's management and on the current assumptions, intentions, plans, expectations and estimates of the management regarding the Company's future growth, results of operations, performance and opportunities as well as the economic environment in which it operates. Forward-looking statements involve known and unknown risks, uncertainties and other factors outside the Company's control. A number of factors could cause actual results of the Company to differ materially from the results discussed in the forward-looking statements, including, but not limited to: market conditions for financing; competitive conditions, whether related to new competitors or current competitors; change in the Company's or its competitors current pricing strategies; changes in demographic trends; changes in consumer preferences and discretionary spending patterns; changes in national and local business and economic conditions; risks associated with the closure of restaurants; costs associated with strategically exiting locations; the ability of the Company to pay dividends; the Company successfully offering new and innovative products and executing its strategies as planned; legislation and governmental regulation; changes in accounting policies, practices and standards; and the results of operations and financial condition of the Company and other factors referenced in the Company's continuous disclosure filings which are available on SEDAR at www.sedar.com. Although the forward-looking statements contained herein are based upon what the Company believes to be reasonable assumptions on the date of this press release, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. Certain assumptions underlying the forward-looking statements contained herein include assumptions related to the Company's ability to obtain financing on conditions favorable to the Company, future cash flows, market conditions, sales estimates, and estimates relating to the Company's ability to settle and exit leases. Readers should not place undue reliance on these forward-looking statements. These forward-looking statements are made as of the date of this press release and, accordingly, are subject to change after such date. Forward-looking statements are provided herein for the purpose of giving information about the Company's current strategic priorities, expectations and plans, allowing investors and others to get a better understanding of the Company's business outlook and operating environment. Readers are cautioned, however, that such information may not be appropriate for other purposes. The Company assumes no obligation to update such forward-looking statements to reflect new information, future events or otherwise, except as required by applicable securities laws. Except as otherwise indicated, forward-looking statements do not reflect the potential impact of any non-recurring or other special items or of any transactions that may be announced or that may occur after the date of this press release. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them. The Company therefore cannot describe the expected impact in a meaningful way or in the same way it presents known risks affecting the business. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

SOURCE: IMVESCOR RESTAURANT GROUP

Denis Richard
President & CEO
Imvescor Restaurant Group Inc.
http://www.imvescor.ca
514-341-5544 

For more information about our brands:
Pizza Delight^®:  http://www.pizzadelight.com
Mikes^®:  http://www.mikes.ca
Scores^®:  http://www.scores.ca
Bâton Rouge^®:  http://www.batonrougerestaurants.com