For Immediate Release Toronto Stock Exchange: BPF.UN
BOSTON
PIZZA ROYALTIES INCOME FUND ANNOUNCES
INTENTION TO MAKE NORMAL COURSE ISSUER BID
VANCOUVER, B.C., September
12, 2013 - 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 September 16, 2013 to no
later than September 15, 2014. The
Normal Course Issuer Bid will permit the Fund to repurchase for cancellation up
to 1,393,078 units, being approximately 9.3% of the Fund’s issued and
outstanding units (as at September 6, 2013) and approximately 10.0% of its
public float, currently comprised of 13,930,780 units. The Fund has 15,029,544 units issued and
outstanding as at September 6, 2013.
The average daily trading volume of the Fund's units for the period between
March 1, 2013 and August 31, 2013 was 16,680 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
4,170 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 Fund’s $56 million 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 credit facilities, a copy of which is
available on www.sedar.com.
The Fund previously
established Normal Course Issuer Bids in 2008, 2009 and 2012, pursuant to which
it was permitted to repurchase for cancellation up to approximately 3.0 million
units through the facilities of the TSX.
Under the Normal Course Issuer Bid established by the Fund in 2012 and
that expired on August 31, 2013, the Fund acquired 541,100 units at an
average price of $22.74 per unit. Under all
three prior Normal Course Issuer Bids established by the Fund, the Fund
acquired approximately 3.0 million units at an average price of $12.37 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. 2013