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Press release from CNW Group


Friday, February 04, 2011

IBI GROUP INC. ANNOUNCES CLOSING OF OVER-ALLOTMENT OF CONVERTIBLE DEBENTURES08:25 EST Friday, February 04, 2011/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./TORONTO, Feb. 4 /CNW/ - IBI Group Inc. (TSX: IBG) ("IBI"), announced today it has closed the issuance of an additional $7,500,000 principal amount of convertible unsecured subordinated debentures pursuant to the exercise of the over-allotment option granted to a syndicate of underwriters led by CIBC World Markets Inc., TD Securities Inc. and National Bank Financial Inc. The gross proceeds from the offering, including the gross proceeds from the exercise of the over-allotment option, will be $57,500,000.The maturity date of the debentures is June 30, 2018. The debentures have a coupon of 6.00% per annum and will pay interest semi-annually in arrears on June 30 and December 31 in each year commencing on June 30, 2011. Each $1,000 principal amount of debenture is convertible into approximately 47.6190 common shares of IBI, at any time, at the option of the holder, representing a conversion price of $21.00 per common share.IBI intends to use the net proceeds from the financing for debt repayment and general corporate purposes.About IBI Group Inc.IBI Group Inc. holds an indirect 72% interest in IBI Group, a partnership which, directly and through subsidiary entities, 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 is owned by IBI Group Management Partnership. On a partially diluted basis, assuming the exchange of its units of IBI Group for common shares of IBI Group Inc., IBI Group Management Partnership together with IBI Group Investment Partnership holds a 46% interest in IBI Group Inc.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 debentures 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 common shares of IBI 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.For further information: Allan J. Kamerman, IBI Group Inc., 230 Richmond Street West, 5th Floor, Toronto, ON, M5V 1V6, Tel: (416) 596-1930, Fax: (416) 596-8024