Toronto Stock Exchange: BPF.UN
VANCOUVER, Feb. 13, 2020 /CNW/ - Boston Pizza Royalties Income Fund (the "Fund") (TSX: BPF.UN) announced today that it has received Toronto Stock Exchange ("TSX") approval of a Notice of Intention to Make a Normal Course Issuer Bid through the facilities of the TSX and other Canadian marketplaces from February 19, 2020 to no later than February 18, 2021. The Normal Course Issuer Bid will permit the Fund to repurchase for cancellation up to 550,000 units of the Fund (the "Units"), being approximately 2.52% of the Fund's issued and outstanding Units (as at February 13, 2020). The Fund has 21,787,763 Units issued and outstanding as at February 13, 2020. The average daily trading volume of the Units for the period between August 1, 2019 and January 31, 2020 was 67,681 Units. In accordance with the rules of the TSX, the maximum number of Units that can be purchased on a daily basis by the Fund is 16,920 Units, subject to the block purchase exception.
"We are implementing a Normal Course Issuer Bid to take advantage of the buying opportunity that may arise as a result of the Fund's recent distribution reduction," said Jordan Holm, President of BPI. "Despite recent challenging conditions across the Canadian full-service restaurant industry that have impacted our sales, Boston Pizza remains well-positioned for the long term. We will continue to pursue strategies that further strengthen our business and drive increased Unitholder value."
The board of trustees of the Fund believes that, from time to time, market conditions provide opportunities for the Fund to acquire Units at attractive prices and that the purchases are an appropriate use of funds that will enhance Unitholder value.
The Fund intends to finance purchases under the Normal Course Issuer Bid by drawing on the Fund's credit facilities that were amended and extended on January 24, 2020 by subsidiaries of the Fund, Boston Pizza Royalties Limited Partnership and Boston Pizza Holdings Limited Partnership, with a Canadian Chartered Bank, or using other future sources of financing. Full particulars of the Fund's credit facilities, including applicable interest rates, security, guarantees and other terms and conditions are contained within the credit agreement governing the credit facilities, a copy of which is available on www.sedar.com.
The Fund has established an automatic securities purchase plan with its broker, BMO Nesbitt Burns Inc., to allow for the repurchase of Units under the Normal Course Issuer Bid at any time, including when it ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. The plan will terminate on the earliest of: (a) the date on which the purchase limits specified in the plan have been attained, (b) the Fund terminates the plan in accordance with the terms of the plan, in which case the Fund will issue a press release announcing such termination, and (c) February 18, 2021. All purchases will be made on the open market through the facilities of the TSX in accordance with the requirements of the TSX or other Canadian marketplaces by registered investment dealers.
The Fund is a limited purpose open ended trust with an excellent track record for investors since its IPO in 2002. Including the January 2020 distribution which is payable on February 28, 2020, the Fund has delivered 18 distribution increases and 211 consecutive monthly distributions totaling $339.1 million or $22.12 per Unit. The Fund earns revenue based on the franchise system sales of the 395 Boston Pizza restaurants in the Fund's royalty pool.
BPI is Canada's number one casual dining brand with annual gross sales of over $1.1 billion serving more than 50 million guests through 395 mainly franchisee operated restaurants. The Boston Pizza brand has successfully existed for over 55 years since opening its first restaurant in Edmonton, Alberta in 1964. BPI has been recognized as a Platinum Member of Canada's 50 Best Managed Companies and has been a Franchisees' Choice Designation winner for eight consecutive years.
The trustees of the Fund approved the contents of this press release.
SOURCE Boston Pizza Royalties Income Fund
For further information: Michael Harbinson, Chief Financial Officer, Tel: 905-848-2700, E-mail: [email protected], www.bpincomefund.com