Pizza Pizza Royalty Corp Announces Significant Savings on Renewed Credit Facility and Timing of First Quarter Results

TORONTO, ONTARIO--(Marketwired - April 28, 2015) - Pizza Pizza Royalty Corp. (the "Company") (TSX:PZA) announced today that its subsidiary, Pizza Pizza Royalty Limited Partnership (the "Partnership"), has entered into an agreement with its existing syndicate of lenders to significantly improve its credit facility terms.

The previous facility was to mature on December 6, 2016 and had a fixed interest rate of 4.12%. The amended term of the facility will be for five years maturing April 24, 2020, with an effective interest rate of 2.75% based on the current Debt-to-EBITDA covenant calculation.

The lower interest rate on the $47 million facility will result in savings of approximately $640,000 annually.

The 2.75% interest rate is comprised of a fixed swap rate of 1.875% and a credit spread of 0.875%. The initial credit spread is based on the current Debt-to-EBITDA ratio calculation being less than 1.5:1.

"We are very pleased with our strong banking relationships and the savings that the renewed credit facility will provide to the Company over the next five years. The lower effective interest rate and resulting increase in distributable cash are significant. The terms of the renewal will minimize cash flow variations and guard against future interest rate uncertainty," said Curt Feltner, Chief Financial Officer of the Company.

The Company also announced that its financial results for the first quarter ended March 31, 2015 will be issued after the close of market on May 7, 2015.

The Company invites analysts and portfolio managers to participate in a conference call with Paul Goddard, Chief Executive Officer and Curt Feltner, Chief Financial Officer. The call will take place on Thursday, May 7, 2015 at 5:00 p.m. Shareholders and media are also invited to listen to the call.

Details of the Conference Call:

Forward Looking Statements:

Certain statements in this report, including statements as to expected reductions to interest rate expense and resulting impacts to the Company, may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this report, such statements include such words as "may", "will", "expect", "believe", "plan", and other similar terminology. These statements reflect management's current expectations regarding future events and speak only as of the date of this report. These forward-looking statements involve a number of risks and uncertainties, including those described in the Company's annual information form. The Company assumes no obligation to update these forward looking statements, except as required by applicable securities laws.