SIR Royalty Income Fund Files a Preliminary Prospectus for Proposed Secondary Offering of Units

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

BURLINGTON, ON, Feb. 21, 2013 /CNW/ - SIR Royalty Income Fund (TSX: SRV.UN) (the "Fund") today announced that it has filed a preliminary short form prospectus in each of the provinces and territories of Canada, other than Québec, in connection with a proposed secondary offering (the "Offering") by SIR Corp. ("SIR") of units of the Fund (the "Offered Units").

The Offering will be conducted by a syndicate of underwriters led by BMO Capital Markets and including CIBC, RBC Capital Markets and Raymond James Ltd.  The size of the Offering and the pricing of the Offered Units will be determined with the final terms of the Offering.

The preliminary short form prospectus contains important information relating to the Offering. It is, however, still subject to completion or amendment. The preliminary short form prospectus is available on the website www.sedar.com and a copy may be obtained from BMO Capital Markets by contacting BMO Capital Markets, Mississauga Distribution Centre C/O The Data Group of Companies, 80 Ambassador Drive,  Mississauga, Ontario, L5T 2Y9 (tel: 905-696-8884 x4222).  This press release does not constitute an offer to sell or the solicitation of an offer to buy the Offered Units.  There will not be any sale or any acceptance of an offer to buy the Offered Units until a receipt for the final prospectus has been issued.

This press release does not constitute an offer to sell or a solicitation of an offer to sell units of the Fund in the United States. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to an exemption therefrom.

About SIR Corp.
SIR is a privately held Canadian corporation that owns and operates a portfolio of 51 restaurants in Canada, 49 of which are included in the pool of restaurants against which SIR pays a 6% royalty to the SIR Royalty Limited Partnership. SIR's Concept brands include: Jack Astor's Bar and Grill®, with 34 locations; Alice Fazooli's®, with four locations; and Canyon Creek Chop House®, with eight locations. SIR also operates one-of-a-kind "Signature" brands in downtown Toronto, which comprise the upscale Reds® Wine Tavern, Far Niente®/FOUR®/Petit Four®, and the Loose Moose Tap & Grill®. All trademarks related to the Concept and Signature brands noted above are used by SIR under a License and Royalty Agreement with SIR Royalty Limited Partnership in consideration for the royalty.

About SIR Royalty Income Fund
The Fund is a trust governed by the laws of the province of Ontario that receives distribution income from its indirect investment in the SIR Royalty Limited Partnership and interest income from its loan to SIR.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements.  The statements that are concerning the Offering are forward-looking statements. The words "may", "will" and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions, including general market conditions at the time of the Offering. The Offering may not be completed or may not be completed on the same terms as previously announced. While the Fund considers these factors and assumptions to be reasonable based on the information currently available, they may prove to be incorrect.



SOURCE: SIR Royalty Income Fund