IBI Group Inc. announces debentureholder approval of debenture amendments

TORONTO – IBI Group Inc. 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,...

Date

July 16, 2014

TORONTO – IBI Group Inc. 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,” said Scott Stewart, Chief Executive Officer of IBI Group. “The extension will allow IBI Group the time we need to continue executing our strategic initiatives. 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 Amendment prior to the proxy deadline will receive, based on their election:

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 practical following confirmation of their entitlements.

About IBI Group Inc.
IBI Group is a TSX-listed corporation and its common shares trade under the symbol “IBG”. We are a globally integrated architecture, planning, engineering, and technology firm with over 2,600 professionals around the world.

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.

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

Media:

Riyaz Lalani
Bayfield Strategy, Inc.
416-907-9365
rlalani@bayfieldstrategy.com

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