Boston Pizza International Inc.



Boston Pizza International Inc.

March 10, 2014 13:47 ET

Boston Pizza International Inc. Announces Closing of Bought Deal

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 10, 2014) - Boston Pizza International Inc. ("BPI") announced today the completion of the previously announced secondary offering of 1,677,506 units (the "Units") of Boston Pizza Royalties Income Fund (the "Fund"). The Units were sold by BPI and persons controlled by BPI's chairmen and owners, Walter James (Jim) Treliving and George C. Melville (the "Chairmen").

A syndicate of investment dealers led by TD Securities Inc. (collectively, the "Underwriters") purchased the Units at a purchase price of $21.10 per Unit for gross proceeds of $35.4 million (the "Transaction"). The Fund did not receive any proceeds from the Transaction.

As part of the Transaction, BPI exchanged 2,036,135 Class B general partner units of Boston Pizza Royalties Limited Partnership ("Class B Units") for 790,006 Units. The Units issued to BPI, upon the exchange of the Class B Units, were sold under the Transaction, along with 887,500 Units that were held by persons controlled by the Chairmen. The Underwriters sold the 1,677,506 Units through the facilities of the Toronto Stock Exchange.

Following the completion of the Transaction, the Class B Units held by BPI, together with all Units controlled by the Chairmen, represent the equivalent of 1,857,525 Units or a 10.5% interest in the Fund on a fully-diluted basis.

The Transaction results from internal financial planning by BPI and the Chairmen and should not be viewed in any way as a reflection of their view of, or outlook for, the Fund. Under the structure of the Fund, BPI's entitlement to receive Units is increased periodically to reflect the addition of new restaurants to the royalty pool. Depending on market conditions and internal considerations, BPI and the Chairmen may acquire or dispose of additional securities of the Fund in the future.

FOR FURTHER INFORMATION OR TO OBTAIN A COPY OF THE RELATED EARLY WARNING REPORT, PLEASE SEE CONTACT INFORMATION BELOW.

® 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

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