VANCOUVER, Feb. 14, 2013 /CNW/ - A&W Food Services of Canada Inc. (A&W
Food Services) announced today that it has sold 880,000 units of A&W
Revenue Royalties Income Fund (TSX: AW.UN) (the Fund) at a price of
$21.90 per unit. Following the sale of these units, A&W Food Services
will own approximately 10.0% of the units of the Fund on a
fully-diluted basis. A&W Food Services intends to continue to hold a
minimum of a 10% indirect interest in the Fund to ensure that interests
of Food Services are closely aligned with interests of unitholders of
the Fund. The Fund did not receive any proceeds of the sale of units.
Prior to the sale of these units, A&W Food Services owned securities
exchangeable for 2,228,854 units of the Fund, representing
approximately a 16.5% indirect interest in the Fund. Following the
exchange of securities for 880,000 units of the Fund and the sale of
these units, A&W Food Services will own securities exchangeable for
1,348,854 units of the Fund, or approximately a 10.0% indirect interest
in the Fund.
A&W Food Services intends to declare dividends in the amount of $17
million to its shareholders of record on February 22, 2013.
A&W Food Services is a privately held company and is Canada's second
largest quick service hamburger restaurant chain with over 770
locations coast-to-coast. A&W restaurants feature famous trade-marked
menu items such as The Burger Family®, Chubby Chicken®, and A&W Root Beer®. The Fund is a limited purpose trust established to acquire indirectly
the A&W trade-marks used by A&W Food Services in its restaurant
business in Canada. The trade-marks are licensed to A&W Food Services
for which A&W Food Services pays the Fund royalties equal to 3% of the
sales of A&W restaurants in the royalty pool.
The units were sold by way of a designated trade to a syndicate of
underwriters led by TD Securities Inc. A&W Food Services disposed of
ownership and control of the units to realize upon its investment. A&W
Food Services will continue to acquire on a yearly basis additional
securities indirectly exchangeable for units of the Fund to reflect the
annual adjustment in respect of the royalty pool. The sale of the
units was conducted through the Pure Trading exchange. The trade will
settle on February 22, 2013.
Certain statements in this press release may contain forward-looking
information within the meaning of applicable securities laws in Canada
(forward-looking information). The words "anticipates", "believes",
"budgets", "could", "estimates", "expects", "forecasts", "intends",
"may", "might", "plans", "projects", "schedule", "should", "will",
"would" and similar expressions are often intended to identify
forward-looking information, although not all forward-looking
information contains these identifying words. The forward-looking
information is based on assumptions that management considered
reasonable at the time it was prepared. The forward-looking
information is subject to risks, uncertainties and other factors that
could cause actual results to differ materially from the results
anticipated by the forward-looking information.
SOURCE: A&W Food Services of Canada Inc.
For further information:
Chief Financial Officer
A&W Food Services of Canada Inc.
#300 - 171 West Esplanade North Vancouver, BC V7M 3K9