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.
ABOUT US
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