IBI Group Inc. Announces Successful Refinancing of Senior Lending Facilities
Tuesday, October 6, 2015
- Successful refinancing of banking agreement with senior lenders a significant milestone
- IBI Group named Turnaround of the Year: International Company
TORONTO – IBI Group Inc. (“IBI” or the “Company”) (TSX: IBG) today announced that the Company has entered into an agreement with its senior lenders to refinance the amended and restated credit facilities originally set to mature on March 31, 2016.
The new senior credit facility has total availability of $90.0 million and matures June 30th, 2018. The negotiated terms of the new credit facility represent an improvement over the prior arrangement, including lower interest rate that reflects IBI’s improved financial condition and risk profile. The new senior credit facility will allow IBI to continue to execute its strategic plan, pursue growth opportunities and address stakeholder interests. This new credit facility, is led by Toronto-Dominion Bank, with whom IBI has had a long-standing relationship, spanning over 40-years.
“We are grateful for the support of our lenders, security holders and the board of IBI. The agreement with our senior lenders is a major accomplishment in the restructuring of IBI, providing a basis to grow the firm and execute on our plan. Needless to say, we are very pleased with the outcome and look forward to a long relationship with the banking syndicate” said Scott Stewart, IBI’s Chief Executive Officer.
“We have made substantial progress over the past 2 years; our EBITDA margins now track at or above our peer group, our staff are enthusiastic and motivated by the changes, our new organizational structure provides better oversight and a clear path for staff to grow, our new systems and procedures provide better administrative oversight and project management, and our backlog is very strong and growing,” continued Mr. Stewart.
As testament to its progress, IBI was recognized for its transformative accomplishments and named International Turnaround of the Year by The Turnaround Management Association (“TMA”). The award reflects IBI’s disciplined approach to strengthening its balance sheet while continuing to deliver outstanding solutions and services to clients around the world.
“IBI’s management team, led by Scott Stewart, David Thom, and Stephen Taylor have shown extraordinary leadership, commitment and tenacity in their efforts to restructure and reposition IBI. The agreement with IBI’s senior lenders, coupled with the growing volume of work and improved performance is a reflection of their efforts. The recognition by the TMA of IBI’s transformation is further validation of the accomplishments of the past two years,” said Dale E. Richmond, Chairman of the Board.
Caution Regarding Forward-Looking Information
Statements in this news release that describe the Company’s or management’s expectations, forecasts, guidance or estimates may constitute “forward-looking” statements, and such statements use words such as “may”, “will”, “expect”, “believe”, “plan” and other similar terminology. Forward-looking statements also include statements that are not historical facts. Forward-looking statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, IBI Group, or the industry in which they operate, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including those related to: (i) IBI’s ability to maintain profitability and manage its growth; (ii) IBI’s reliance on its key professionals; (iii) competition in the industry in which IBI operates; (iv) timely completion by IBI of projects and performance by IBI of its obligations; (v) fixed-price contracts; (vi) the general state of the economy; (vii) acquisitions by IBI; (viii) risk of future legal proceedings against IBI; (ix) the international operations of IBI; (x) reduction in IBI’s backlog; (xi) fluctuations in interest rates; (xii) fluctuations in currency exchange rates; (xiii) potential undisclosed liabilities associated with acquisitions; (xiv) upfront risk for time invested in participating in consortiums bidding on large projects; (xv) limits under IBI’s insurance policies; (xvi) the Company’s reliance on distributions from IBI Group LP and IBI Group and, as a result, its susceptibility to fluctuations in IBI’s performance; (xvii) unpredictability and volatility of the price of the Company’s shares; (xviii) the degree to which IBI is leveraged; (xix) the possibility that the Company may issue additional shares diluting existing shareholders’ interests; and (xx) income tax matters. See “Risk Factors” discussed in the Company’s Annual Information Form filed with the Canadian securities regulatory authorities. New risk factors may arise from time to time and it is not possible for management of the Company to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance or achievements of the Company to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Although the forward-looking statements contained in this annual information form are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release.
About IBI Group Inc.
IBI Group (TSX:IBG) is a globally integrated architecture, planning, engineering, and technology firm with over 2,200 professionals around the world. For more than 40 years, its dedicated professionals have helped clients create livable, sustainable, and advanced urban environments. IBI Group believes that cities must be designed with intelligent systems, sustainable buildings, efficient infrastructure, and a human touch.
SOURCE: IBI Group Inc.
For further information:
Stephen Taylor, CFO
IBI Group Inc.
55 St. Clair West, 7th Floor
Toronto, ON M4V 2Y7
Bayfield Strategy, Inc.