IBI Income Fund

IBI Income Fund

December 04, 2007 16:27 ET

IBI Income Fund Announces $37.5 Million Offering of Units

TORONTO, ONTARIO--(Marketwire - Dec. 4, 2007) -


IBI Income Fund (TSX:IBG.UN) ("IBI") announced that today it has entered into an agreement to sell to a syndicate of underwriters led by CIBC World Markets Inc., on a bought deal basis, 1,250,000 trust units ("Units") at a price of $24.00 per Unit for gross proceeds to IBI of approximately $30 million (the "Financing"). Concurrent with the Financing, the IBI Management Partnership will purchase approximately $7.5 million in Units of the Fund ($8.625 million if the Over-allotment Option is exercised in full), which will result in the Partnership's ownership interest being approximately 47.5%, before giving effect to the Over-allotment Option. IBI has granted the underwriters an over-allotment option ("Over-allotment Option"), exercisable in whole or in part at any time up to 30 days after closing, to purchase up to an additional 187,500 Units at the same offering price. Should the Over-allotment Option be exercised in full, the total gross proceeds of the offering would be approximately $43 million. The Units will be offered by way of short form prospectus in each of the provinces and territories of Canada, as well as in the United States under applicable private placement exemptions. The Financing is expected to close on or about December 20, 2007 and is subject to regulatory approval.

IBI intends to use the net proceeds from the Financing and the Management Partnership investment for general corporate purposes, including repayment of debt.

About IBI Income Fund

The Fund is a TSX listed income trust, which pays monthly distributions and trades under the symbol "IBG.UN". The Fund holds an indirect 63% interest in IBI Group, a partnership which, directly and through its subsidiary entities, provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. The remaining 37% of IBI Group is owned by IBI Group Management Partnership.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of IBI Income Fund have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.

Contact Information

  • IBI Income Fund
    Philip H. Beinhaker
    (416) 596-1930