Altus Group Limited
TSX : AIF

Altus Group Limited

June 23, 2014 08:30 ET

Altus Group Announces Early Redemption of 5.75% Convertible Debentures

TORONTO, ONTARIO--(Marketwired - June 23, 2014) - Altus Group Limited (╩║Altus Group╩║ or "the Company") (TSX:AIF) announced today that it plans to redeem all of its outstanding 5.75% Convertible Debentures (the "Debentures"). The Debentures, which have a maturity date of December 31, 2017, will be redeemed by the Company early on July 28, 2014 (the "Redemption Date") in accordance with the terms of the Debenture trust indenture. The Debentures are listed on the Toronto Stock Exchange under the symbol "AIF.DB".

The aggregate principal amount of the Debentures is $50 million. On the Redemption Date, Altus Group will pay the holders of the redeemed Debentures a redemption price equal to $1,000 for each $1,000 principal amount of Debentures and all accrued and unpaid interest up to but excluding the Redemption Date. Altus Group intends to use cash on hand or available to be drawn on its credit facilities to pay the redemption price.

Formal notice of redemption is being delivered to the Debenture holders through the Debenture Trustee, BNY Trust Company of Canada, in accordance with the trust indenture. Beneficial holders of the Debentures are encouraged to contact their investment dealer to coordinate the surrender of their Debentures or if they have any questions about the redemption.

Holders of the Debentures have the right to convert their Debentures into Altus Group common shares at a conversion price of $18.60 per share, representing a conversion rate of 53.7634 Altus Group common shares per $1,000 principal amount of Debentures. Assuming that all Debentures holders exercise their right to convert, approximately 2.7 million common shares will be issued from Treasury. No action is required to be taken by holders of the Debentures if they wish to have their Debentures redeemed in cash.

"The strong performance of our share price allows us to redeem the 5.75% Debentures well in advance of their maturity in 2017," said Angelo Bartolini, Chief Financial Officer. "The early conversion of the Debentures has economic benefits for the Company by lowering net cash distributions, while reducing the debt on our balance sheet and increasing the market liquidity of our shares."

About Altus Group Limited

Altus Group is a leading provider of independent commercial real estate consulting and advisory services, software and data solutions. We operate five interrelated Business Units, bringing together years of experience and a broad range of expertise into one comprehensive platform: Research, Valuation and Advisory; ARGUS Software; Property Tax Consulting; Cost Consulting and Project Management and Geomatics. Our suite of services and software enables clients to analyze, gain insight and recognize value on their real estate investments.

Altus Group has over 1,900 employees in multiple offices around the world, including Canada, the United States, the United Kingdom, Australia and Asia Pacific. Altus Group's clients include financial institutions, private and public investment funds, insurance companies, accounting firms, public real estate organizations, real estate investment trusts, healthcare institutions, industrial companies, foreign and domestic private investors, real estate developers, governmental institutions and firms in the oil and gas sector.

Forward-Looking Information

Certain information in this press release may constitute "forward-looking information" within the meaning of applicable securities legislation. All information contained in this press release, other than statements of current and historical fact, is forward-looking information. Forward-looking information includes information that relates to, among other things, objectives, strategies and intentions, and future financial and operating performance and prospects. Generally, forward-looking information can be identified by use of words such as "may", "will", "expect", "believe", "plan", "would", "could" and other similar terminology. All of the forward-looking information in this press release is qualified by this cautionary statement. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Altus Group at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results, performance or achievements, industry results or events to be materially different from those expressed or implied by the forward-looking information. Please consult Altus Group's most recent regulatory filings on SEDAR for more information on the Company's forward-looking statements.

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