Stone Investment Group Limited

Stone Investment Group Limited

August 11, 2011 17:16 ET

Debentureholders and Warrantholders of Stone Investment Group Limited Approve Amendments to Debenture Indenture and Warrant Indenture

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Stone Investment Group Limited ("SIG" or the "Corporation") is pleased to announce it has obtained approval from holders of its 9% senior secured debentures (the "Debentures") due December 28, 2011 and holders of purchase warrants exercisable for common shares in the capital of the Corporation (the "Warrants") to amend the terms of the Debentures and Warrants, respectively.

As of August 9, 2011, the Debenture Amendments result in the following:

  1. Changing the calculation and payment of interest after August 9, 2011 from being calculated and payable quarterly at the rate of 11% per annum to: (i) being calculated and payable quarterly at the rate of 7.5% per annum (the "Quarterly Interest"); and (ii) additional interest calculated and payable on December 16, 2016 at the rate of 3.5% per annum (the "Additional Interest");

  2. The interest coverage ratio will be calculated using Quarterly Interest;

  3. Extending the maturity date of the Debentures by five years from December 28, 2011 to December 16, 2016; and

  4. Granting the Trustee the ability to execute agreements and documentation to give effect to an issuance of up to an additional $16 million of debentures of the Corporation on terms and conditions no more favourable than the Debentures.

As of August 9, 2011, the Warrant Amendments result in the following:

  1. Increasing the number of Warrants that can be issued under the warrant indenture related to the Warrants from 7,200,000 to 16,800,000;

  2. Correcting certain technical deficiencies in the terms of the Warrants with respect to the redemption price to match the terms set forth in the prospectus of the Corporation dated December 20, 2006;

  3. Granting to the Corporation the right to repurchase the issued and outstanding Warrants in tranches commencing on January 1, 2012;

  4. Extending the Warrant Detachment Date (as defined in the warrant indenture relating to the Warrants) from December 28, 2011 to December 28, 2016, absent an earlier detachment upon the repayment of the principal amount of the Debentures; and

  5. Amending the termination date of the warrants to be 30 days following the Warrant Detachment Date.

Debentureholders will be entitled to the interest payments calculated and payable as follows:

  1. For the period from July 1, 2011 to, but excluding, August 9, 2011, interest at a rate of 11%; and

  2. For the period from August 9, 2011 to September 30, 2011, at an annual interest rate of 7.5%, payable on October 15, 2011.

Thereafter, Debentureholders will receive the Quarterly Interest and Additional Interest as described above and in the Corporation's management information circular dated July 7, 2011.

About Stone Investment Group Limited

Stone Investment Group Limited is an independent wealth management company. Stone Investment Group Limited, through its wholly-owned subsidiaries, Stone & Co. Limited and Stone Asset Management Limited, structures and manages high quality investment products for Canadian investors.

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