The Keg Royalties Income Fund

The Keg Royalties Income Fund

March 18, 2010 08:01 ET

The Keg Royalties Income Fund and Keg Restaurants Ltd. Announce Bought Deal Offering of Units

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2010) -


The Keg Royalties Income Fund (the "Fund") (TSX:KEG.UN) and Keg Restaurants Ltd. ("KRL") announce that KRL has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. and including CIBC World Markets Inc. (collectively the "Underwriters") to complete a secondary offering of units of the Fund. Under the agreement, the Underwriters have has agreed to purchase 900,000 units of the Fund ("Units") at a purchase price of $12.15 per Unit for gross proceeds of $10,935,000. The Units are being sold by KRL. The offering will be made pursuant to a short form prospectus to be filed with securities regulators in each of the Provinces of Canada other than the Province of Quebec. The offering is expected to close on or about April 9, 2010. Closing is subject to a number of customary conditions, including receipt of all necessary regulatory approvals.

KRL currently holds 905,944 Class A units, 1,826,700 Class B units and 1,548,247 Class D units of The Keg Rights Limited Partnership (together the "Exchangeable Units"), which are exchangeable for an aggregate of 4,280,891 Units of the Fund, representing a 30.61% indirect interest in the Fund. Prior to closing of the offering, KRL will exchange only the number of Exchangeable Units needed for the number of Units to be sold pursuant to the offering. Following the closing of the offering, KRL will beneficially own an aggregate of 3,380,891 Exchangeable Units, representing an equivalent beneficial ownership of 3,380,891 Units, or approximately a 24.18% indirect interest in the Fund. The Fund will not receive any proceeds from the offering.

Certain information in this press release may constitute "forward-looking" information that involves known and unknown risks, uncertainties, future expectations and other factors which may cause the actual results, performance, achievements or transactions of the Fund, the Keg Rights Limited Partnership, KRL, to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking information. When used in this press release, such information uses words including "anticipate", "estimate", "may", "will", "expect", "believe", "plan" and other similar terminology. This information reflects current expectations regarding future events and operating performance and speak only as of the date of this press release. Such forward-looking information involves a number of risks, uncertainties and future expectations including, but not limited to the risks and uncertainties set out in the Fund's management's discussion and analysis for the year ended December 31, 2009 filed on SEDAR at Forward-looking information is made as of the date hereof and, except as required by law, we assume no obligation to update or revise forward-looking information to reflect new events or circumstances.

The trustees of the Fund have approved the contents of this press release.

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