Diversified Royalty Corp T.DIV

Alternate Symbol(s): BEVFF | T.DIV.DB.A

Consumer Cyclical Auto & Truck Dealerships

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in acquiring royalties from multi-location businesses and franchisors in North America. It owns Mr. Lube + Tires, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademarks. Mr. Lube + Tires is the quick lube service business in Canada, with locations across Canada. AIR MILES is a coalition loyalty program. Sutton is a residential real estate brokerage franchisor business in Canada. Mr. Mikes operates casual steakhouse restaurants in western Canadian communities. Nurse Next Door is a home care provider. Oxford Learning Centres is a franchisee supplemental education service. Stratus Building Solutions is a commercial cleaning service franchise company providing comprehensive environmentally friendly janitorial, building cleaning, and office cleaning services in the United States. BarBurrito is a quick-service Mexican restaurant food chain.

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Diversified Royalty Corp

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Comment by Mining_Dudeon Aug 25, 2017 5:27pm

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Post# 26623528

RE:RE:Airmiles. Wow.

Yea this just hit our desk. initial reaction:
1) sizing is a tad small, expected $100m (25% debt financed). Though they hinted that there may be another deal post credit line after this one and their conference call deck confirms this
2) implied cash yield is above expectations. We expected 12% implied cash yield on the deal, this one seems to be clocking in at ~15%
3) Recognizable brand is excellent. Only negative is BMO will need to renew its airmiles deal next year to maintain proforma outlook..

Conference call on this is at 3pm Pacifric. Will probably get more color there.

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