Sir Royalty Income Fund SIRZF

Primary Symbol: T.SRV.UN

Consumer Cyclical Restaurants

SIR Royalty Income Fund (the Fund) holds investment in SIR Corp (SIR). The Funds' investment, SIR is engaged in the business of owning and operating full-service restaurants in Canada. SIR has concept restaurant brands, including Jack Astor’s Bar and Grill, Scaddabush Italian Kitchen & Bar, and Canyon Creek Chop House, signature restaurant brands, such as Reds Wine Tavern, Reds Midtown Tavern, Reds Square One, and The Loose Moose, which are used by SIR under a license agreement with SIR Royalty Limited Partnership (the Partnership. The Fund receives distribution income from its investment in the Partnership and interest income from the SIR Loan. The Fund indirectly participates in the revenues generated under the License and Royalty Agreement through its Investment in the Partnership.

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Sir Royalty Income Fund > Opco Debt Levels

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Comment by BlueJay2020on Jul 19, 2021 7:10pm

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Post# 33573288

RE:RE:RE:Opco Debt Levels

Yep, you're right. For some reason they decided to bury the new debt in other long-term liabilities, even though they include some of it in the bank credit facilities in the discussion.

Still, I'd argue that in a period when revenue was down something like 70 per cent, to be about $7M higher is not the end of the world.

Wordless1 wrote: My bad there debt appears to be close to $37M.

$24.3M + EDC $6.25M + BDC $6.25M = $36.8M

They basically took advantage of the government back programs to pay down their bank. Debt hasn't decrease at all.

The Company received the $6,250,000 BDC-Guaranteed Facility under the seventh amendment effective March 31, 2021. SIR and the Lender have also entered into a purchase card agreement providing credit of up to an additional $1,500,000.

As at May 9, 2021, the Company has drawn $24,279,000 on Credit Facility 1 and Credit Facility 2, net of cash

The BDC-Guaranteed Facility bears interest at a fixed rate of 4%. The BDC-Guaranteed Facility is a 10 year revolving-term credit facility, with a one year principal payment moratorium and can be extended at the Lender’s sole discretion by a further 12 months. For the 36-week period ended May 9, 2021, SIR has drawn $6,250,000 million on this facility.