Priszm Income Fund announces $30 million financing


    TORONTO, June 4 /CNW/ - Priszm Income Fund (TSX: QSR.UN) ("Priszm") today
announced that it has entered into an agreement to sell an aggregate principal
amount of $30 million in 6.5 per cent convertible unsecured subordinated
debentures due June 30, 2012 (the "Debentures"). The offering is being
underwritten by a syndicate of underwriters co-led by TD Securities Inc. and
RBC Capital Markets on a bought deal basis.
    The Debentures will pay interest semi-annually in arrears on December 31
and June 30, with the initial interest payment on December 31, 2007. Priszm
shall have the option to pay such interest either in cash or units of Priszm
(the "Units"), subject to regulatory approval.
    The Debentures will be convertible at a conversion price of $12.28 at the
holders' option into fully paid and non-assessable Units at any time prior to
the close of business on the earlier of June 30, 2012 and the business day
immediately preceding the date fixed for redemption. The conversion price of
$12.28 per Unit is equivalent to a ratio of approximately 81.4332 Units per
$1,000 principal amount of Debentures.
    "We are pleased with this new financing arrangement and our focus is to
continue to grow the brands under the Priszm umbrella," said John Bitove,
Chief Executive Officer of Priszm. "As one of the world's leaders in
multi-branded locations, we are taking on additional financing to complete 30
to 40 new projects in the next 24 months."
    The offering is expected to close on or about June 22, 2007.
    The securities offered will not be registered under the U.S. Securities
Act of 1933, as amended (the "Securities Act") and may not be offered or sold
within the United States or to, or for the account or benefit of, U.S. persons
absent registration or an applicable exemption from the registration
requirements of the Securities Act.

    About Priszm Income Fund

    Priszm Income Fund (TSX: QSR.UN) has a 60.2 per cent interest in Priszm
LP and its general partner, Priszm Inc., which owns and operates 483 quick
service restaurants in seven provinces across Canada. The KFC, Taco Bell,
Pizza Hut and Long John Silver's restaurants under Priszm, which generated
annual revenues in excess of $500 million in 2006, serve 1.5 million customers
a week and employ more than 9,000 people. Currently, 94 locations are
multi-branded, combining two or more of the Fund's restaurant concepts. To
find out more about Priszm Income Fund (TSX: QSR.UN), visit our website at

    Forward-Looking Statements

    Any forward-looking statements in this document are based on current
expectations that are subject to significant risks and uncertainties that are
difficult to predict. Actual results might differ materially from projections
suggested in any forward-looking statements due to factors such as the
competitive nature of the quick service restaurant industry, the ability of
Priszm and Priszm LP to execute a growth and development strategy, the
reliance of Priszm and Priszm LP on key personnel, the terms and conditions of
Priszm LP's franchise arrangements, and risk associated with the structure of
income trusts. Priszm and Priszm LP assume no obligation to update the
forward-looking statements, or to update the reasons why actual results could
differ from those reflected in the forward-looking statements. Additional
information identifying risks and uncertainties is contained in Priszm's
filings with the Canadian securities regulators, available at

    %SEDAR: 00019884E

For further information:

For further information: Investors: Trish Moran, (416) 624-5133,; Media: Wilcox Group, (416) 203-6666,

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