Toronto Stock Exchange: BPF.UN
VANCOUVER, Nov. 26, 2018 /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 November 28, 2018 to no later than November 27, 2019. The Normal Course Issuer Bid will permit the Fund to repurchase for cancellation up to 115,000 units of the Fund (the "Units"), being approximately 0.5% of the Fund's issued and outstanding Units (as at November 26, 2018). The Fund has 21,886,063 Units issued and outstanding as at November 26, 2018. The average daily trading volume of the Units for the period between May 1, 2018 and October 31, 2018 was 32,659 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 8,164 Units, subject to the block purchase exception.
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 remaining balance of the Fund's credit facilities established on May 5, 2015 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 date on which the Normal Course Issuer Bid automatically terminates in accordance with the plan, (c) 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 (d) November 27, 2019. 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 October 2018 distribution which is payable on November 30, 2018, the Fund has delivered 18 distribution increases and 196 consecutive monthly distributions totaling $301.8 million or $20.41 per Unit. The Fund earns revenue based on the franchise system sales of the 391 Boston Pizza restaurants included in the Fund's royalty pool.
BPI is Canada's number one casual dining brand with annual gross sales of $1.1 billion serving more than 50 million guests through over 390 mainly franchisee operated restaurants. The Boston Pizza brand has successfully existed for over 50 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 seven consecutive years.
The trustees of the Fund have approved the contents of this news release.
SOURCE Boston Pizza Royalties Income Fund
For further information: Wes Bews, Chief Financial Officer, Tel: 604-270-1108, E-mail: [email protected], www.bpincomefund.com