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Boston Pizza Royalties Income Fund Announces Renewal of Credit Facility

July 23, 2012

For Immediate Release                                                                           Toronto Stock Exchange: BPF.UN

BOSTON PIZZA ROYALTIES INCOME FUND ANNOUNCES RENEWAL OF CREDIT FACILITY


VANCOUVER, BC, July 23, 2012 - Boston Pizza Royalties Income Fund (the “Fund”) (TSX: BPF.UN) announced today that its subsidiary, Boston Pizza Royalties Limited Partnership (the “Partnership”) has entered into an agreement with a Canadian Chartered Bank (the “Lender”) pursuant to which the Lender has provided the Partnership with up to $56.0 million of credit facilities (the “New Credit Facilities”) having a five year term expiring on July 19, 2017 to supersede and replace the Partnership’s previous credit facilities.  The Partnership had $30 million of indebtedness drawn on its previous credit facilities.  At today’s interest rates, the New Credit Facilities, assuming existing debt to EBITDA levels are maintained, provide an improvement of 92 basis points over the Partnership’s previous credit facilities.  In connection with the New Credit Facilities, the Partnership has concurrently entered into an interest rate swap under the International Swap Dealers Association Master Agreement previously entered into between the Partnership and the Lender (a copy of which is available on www.sedar.com), to fix the interest rate at 2.69% per annum (assuming existing debt to EBITDA levels are maintained) for a term of five years for the Partnership’s existing $30 million of debt (the “Swap Agreement”).

“We are very pleased that this new credit agreement provides the Fund with both lower effective interest rates and $25 million of additional borrowing capacity,” said Wes Bews, Chief Financial Officer of BPI and the Fund. “In addition, given the current low interest rate environment, we’ve elected to lock in the lower rates via an interest rate swap to provide certainty and protection against future interest rate increases.  This will minimize cash flow variances and ensure an accretive benefit to Fund unitholders over the next five years”.

The New Credit Facilities are comprised of: (a) a $1 million operating facility to replace the Partnership’s previous $1 million operating facility that was scheduled to expire on September 22, 2012; (b) a $30 million revolving credit facility to replace the Partnership’s previous $5 million term loan, $20 million non-revolving normal course issuer bid credit facility and $5 million non-revolving supplementary normal course issuer bid credit facility, all of which were fully drawn and were scheduled to expire on September 22, 2012; and (c) a new $25 million revolving credit facility to facilitate the Fund repurchasing and canceling additional units of the Fund should it choose to do so in the future.  There are no plans at this time for the Fund to use the additional debt capacity provided by the New Credit Facilities.  After entering into the Swap Agreement, the $30 million of debt currently drawn on the New Credit Facilities bears interest at a fixed rate of 1.44% plus between 1.00% and 1.50%, depending upon the amount drawn on the New Credit Facilities. The remaining $26 million of available debt capacity will, if drawn, bear interest at fixed or variable interest rates, as selected by the Partnership, comprised of either or a combination of the Lender’s bankers’ acceptance rates plus between 1.00% and 1.50%, depending upon the amount drawn on the New Credit Facilities, or prime rate plus between 0.00% and 0.50%, depending upon the amount drawn on the New Credit Facilities.

The Partnership's obligations under the New Credit Facilities are secured by a first charge over the assets of the Partnership, similar to the security previously granted by the Partnership to secure performance of its previous credit facilities.  The material covenants of the Partnership in respect of the New Credit Facilities are substantially similar to the Partnership’s previous credit facilities except that the Partnership’s debt to EBITDA covenant has changed from 1.25 to 1 under the previous credit facilities to 2.00 to 1 under the New Credit Facilities.  The New Credit Facilities are guaranteed by the Fund and its other subsidiaries, some of whom have granted security for their obligations under those guarantees, again in a manner similar to the guarantees and security previously granted by the Fund and its other subsidiaries to support the Partnership’s previous credit facilities.

Full particulars of the New 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.

The trustees of the Fund have 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

www.bpincomefund.com

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