Boston Pizza Royalties Income Fund
TSX : BPF.UN

Boston Pizza Royalties Income Fund

February 24, 2009 04:30 ET

Boston Pizza Royalties Income Fund Announces Completion of Its Normal Course Issuer Bid

Fund reaches the maximum repurchase limit of 1.3 million units under its normal course issuer bid launched on October 1, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2009) - Boston Pizza Royalties Income Fund (the "Fund") (TSX:BPF.UN) announced today that the Fund has completed its normal course issuer bid (the "NCIB") effective February 23, 2009 with the repurchase and cancellation of 1,336,154 units of the Fund ("Units"), the maximum allowed under its current NCIB, at an average price of $8.54 per Unit.

On September 22, 2008 the Fund announced that it had received Toronto Stock Exchange ("TSX") approval of the NCIB which permitted the Fund to repurchase for cancellation up to 1,336,154 units, being approximately 8.5% of the Fund's issued and outstanding units (as at September 19, 2008) and approximately 10.0% of its public float, then comprised of 13,361,545 units. Purchases under the NCIB commenced on October 1, 2008. The Fund paid the market price at the time of acquisition for any Units purchased through the facilities of the TSX and all Units acquired under the NCIB have been cancelled. As of February 23, 2009 there are 17,689,120 Units outstanding on a fully diluted basis.

The board of trustees of the Fund believes that the NCIB has enhanced unitholder value by reducing overall monthly cash distributions payable. This savings is partially offset by interest expense and the administrative costs of establishing the NCIB.

To fund purchases under the NCIB, the Fund's subsidiary, Boston Pizza Royalties Limited Partnership (the "Partnership"), entered into an agreement with a Canadian Chartered Bank whereby the bank provides a credit facility in the amount of up to $20 million available in loans at variable and fixed interest rates (the "NCIB Credit Facility"), as selected by the Partnership. The NCIB Credit Facility is secured by a first charge over the assets of the Partnership, has a four year term and has no scheduled repayment terms. The amounts drawn down by the Partnership on the NCIB Credit Facility were advanced to the Fund by the Partnership through the other subsidiary entities of the Fund as a return of capital and repayment of existing indebtedness. After all the purchases under the NCIB have settled, the Partnership will have drawn down the NCIB Credit Facility by $11.4 million.

The Fund is a limited purpose, open-ended trust established under the laws of British Columbia to acquire indirectly certain trade-marks and trade names used by BPI in its Boston Pizza restaurants in Canada. The trade-marks are licensed to BPI for 99 years for which BPI pays the Fund 4% of franchise revenues of royalty pooled restaurants.

The Trustees of the Fund have approved the contents of this news release.

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