Boston Pizza Royalties Income Fund

Boston Pizza Royalties Income Fund
Boston Pizza International Inc.

Boston Pizza International Inc.

March 04, 2014 08:30 ET

Boston Pizza International Inc. Announces Bought Deal

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 4, 2014) - Boston Pizza International Inc. ("BPI") announced today that BPI, together with persons controlled by BPI's chairmen and owners, Walter James (Jim) Treliving and George C. Melville (the "Chairmen"), have entered into an agreement with TD Securities Inc. to complete a secondary offering of units (the "Units") of Boston Pizza Royalties Income Fund (the "Fund").

Under the agreement, a syndicate of investment dealers led by TD Securities Inc. has agreed to purchase 1,677,506 Units at a purchase price of $21.10 per Unit for gross proceeds of $35.4 million (the "Transaction"). The Transaction is expected to close on or about March 10, 2014.

BPI currently holds 6,819,532 Class B general partner units of Boston Pizza Royalties Limited Partnership ("Class B Units"), which are exchangeable for 2,645,931 Units. As part of the Transaction, BPI will exchange 2,036,135 Class B Units for 790,006 Units and will sell those Units to the syndicate of investment dealers. The other 887,500 Units are currently held by persons controlled by the Chairmen and will be sold by those persons to the syndicate of investment dealers.

The Class B Units held by BPI, together with all Units controlled by the Chairmen, represent the equivalent of 3,535,031 Units or a 19.9% interest in Boston Pizza Royalties Income Fund (the "Fund") on a fully-diluted basis. Following the closing of the Transaction, the Class B Units then held by BPI, together with all Units then controlled by the Chairmen, will represent the equivalent of 1,857,525 Units or a 10.5% interest in the Fund on a fully-diluted basis. The Fund will not receive any proceeds from the Transaction.

Contact Information