VANCOUVER, British Columbia -- Boston Pizza Royalties Income Fund has priced its initial public offering of 7,690,000 units at CAN $10 a unit (U.S. $6.50), for total proceeds of C$76.9 million (U.S. $50 million).
According to a company release, the IPO will be underwritten by a syndicate of brokers led by Scotia Capital, Inc.
Net proceeds of the offering, together with funds drawn under a new creditor, will be used to purchase certain trademarks and trade names used by Boston Pizza International Inc. (BPI) in its Boston Pizza restaurants in Canada.
The trademarks will be licensed to BPI for 99 years and BPI will pay the fund 4 percent of franchise revenues of its 154 Boston Pizza restaurants in Canada (as of April 30, 2002). BPI will retain a 20 percent interest in the fund upon closing of the offering, scheduled for July 17.
The Toronto Stock Exchange has conditionally approved the listing of the trust units under the symbol BPF.UN, subject to the requirements of the exchange.
The Boston Pizza Royalties Income Fund will only draw on revenues produced by the company's restaurants in Canada. Its stock will not be listed in the United States, where the company currently has about a half dozen franchised restaurants.