For Immediate Release Toronto Stock Exchange: BPF.UN
BOSTON
PIZZA ROYALTIES INCOME FUND ANNOUNCES
INTENTION TO MAKE NORMAL COURSE ISSUER BID
VANCOUVER, B.C., August 22,
2012 - 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 from September 4, 2012 to no later than August 31, 2013. The Normal Course Issuer Bid will permit the
Fund to repurchase for cancellation up to 1,442,522 units, being approximately 9.9%
of the Fund’s issued and outstanding units (as at August 17, 2012) and
approximately 10.0% of its public float, currently comprised of 14,452,221
units. The Fund has 14,570,644 units
issued and outstanding as at August 17, 2012. The average daily trading volume of the
Fund's units for the period between February 1, 2012 and July 31, 2012
was 28,699 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 7,174 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 $26 million available debt capacity that was included as part of the
Fund’s $56 million credit facilities (the “New Credit Facilities”) established on July 19, 2012 by a
subsidiary of the Fund, Boston Pizza Royalties Limited Partnership, with a
Canadian Chartered Bank. Full particulars of the Fund’s credit facilities,
including applicable interest rates, security, guarantees and other terms and
conditions are contained within the amended and restated credit agreement
governing the New Credit Facilities, a copy of which is available on www.sedar.com. See also our press release dated July 23, 2012.
The Fund previously
established Normal Course Issuer Bids in 2008 and 2009 (the “Prior NCIBs”), pursuant to which it was permitted to repurchase for
cancellation up to approximately 2.5 million units through the facilities of
the TSX. Under the Prior NCIBs the Fund
acquired approximately 2.5 million units at an average price of $10.10 per unit. The Fund paid the market price at the time of
acquisition for units purchased through the facilities of the TSX and all units
acquired under the Prior NCIBs were cancelled.
The
trustees of the Fund approved the contents of this news release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Boston Pizza Royalties Income Fund
Jordan Holm - Vice President of Investor Relations
Tel: 604-303-6083
investorrelations(at)bostonpizza.com
www.bpincomefund.com
® Boston Pizza Royalties Limited Partnership. All Boston Pizza registered Canadian trade-marks and unregistered Canadian trade-marks containing the words "Boston", "BP", and/or "Pizza" are trade-marks owned by the Boston Pizza Royalties Limited Partnership and licensed by the Boston Pizza Royalties Limited Partnership to Boston Pizza International Inc.
© Boston Pizza International Inc. 2012