- Successful refinancing of banking agreement with senior
lenders a significant milestone
- IBI named Turnaround of the Year: International Company by
Turnaround Management Association
TORONTO, Oct. 6, 2015 /CNW/ - 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; * 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.