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Press release from CNW Group

IBI Income Fund announces closing of previously disclosed public offering of convertible debentures

Wednesday, April 28, 2010

IBI Income Fund announces closing of previously disclosed public offering of convertible debentures08:18 EDT Wednesday, April 28, 2010/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/TORONTO, April 28 /CNW/ - IBI Income Fund (TSX: IBG.UN) ("IBI"), announced today it has closed the previously announced issuance of convertible unsecured subordinated debentures on a bought deal basis to a syndicate of underwriters led by TD Securities Inc and CIBC World Markets Inc. The total gross proceeds of the offering were $20,000,000. IBI has granted the underwriters an over-allotment option ("Over-allotment Option"), exercisable in whole or in part at any time up to 30 days after closing, to purchase up to an additional $2,000,000 of Debentures at the same offering price.The Debentures have a maturity date of June 30, 2017. The Debentures have a coupon of 5.75% per annum and will pay interest semi-annually in arrears on June 30 and December 31 in each year commencing December 31, 2010. Each $1,000 principal amount of Debenture is convertible into approximately 48.7329 units of IBI, at any time, at the option of the holder, representing a conversion price of $20.52 per unit.IBI intends to use the net proceeds from the Financing for general purposes of the Fund, including contemplated acquisitions, working capital purposes and to reduce outstanding bank indebtedness of IBI Group.About IBI Income FundThe Fund holds an indirect 72% interest in IBI Group, a partnership which provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. The remaining 28% of IBI Group, represented by Class B Units, is owned by IBI Group Management Partnership. On a partially diluted basis, assuming the exchange of the Class B units for units of the Fund, IBI Group Management Partnership and IBI Group Investment Partnership have a 46% interest in the Fund.This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of IBI Income Fund have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.%SEDAR: 00021044EFor further information: Allan J. Kamerman, IBI Income Fund, 230 Richmond Street West, 5th Floor, Toronto, ON, M5V 1V6, Tel: (416) 596-1930, Fax: (416) 596-8024