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 22,
2014 - 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 25, 2014 to no
later than September 24, 2015. The
Normal Course Issuer Bid will permit the Fund to repurchase for cancellation up
to 1,385,023 units, being approximately 8.9% of the Fund’s issued and
outstanding units (as at September 19, 2014) and approximately 10.0% of
its public float, currently comprised of 13,850,231 units. The Fund has 15,582,450 units issued and
outstanding as at September 19, 2014.
The average daily trading volume of the Fund's units for the period
between March 1, 2014 and August 31, 2014 was 23,978 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 5,995 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
July 19, 2012 by a subsidiary of the Fund, Boston Pizza Royalties 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 amended and
restated 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 Fund 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 terminates, (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) September 24,
2015. 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.
Under the Normal
Course Issuer Bid established by the Fund in 2013 and that expired on September 15,
2014, the Fund was permitted to repurchase for cancellation up to approximately
1.4 million units and actually acquired 237,100 units at
an average price of $20.33 per unit.
The Fund paid the market price at the time of acquisition for units
purchased through the facilities of the TSX or other Canadian marketplaces and
all units acquired under that Normal Course Issuer Bid 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. 2014