Sir Royalty Income Fund T.SRV.UN

Alternate Symbol(s): SIRZF

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.

TSX:SRV.UN - Post by User

Sir Royalty Income Fund > money coming in April

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Comment by BlueJay2020on Apr 01, 2021 9:21am

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Post# 32921603

RE:RE:money coming in April

Yes, I think this is very significant. The senior lender thinks there is enough cash to give $1M to SRV. Don't forget that SRV has likely incurred a chunk of consulting fees in relation to the strategic review, as well as ongoing costs (including additional taxes) - the bank probably put a restriction on the use of the funds so that they could not be distributed. I am OK with that.

In overall terms, there is a lot that is on the positive side - liquidity doesn't seem to be an issue. It's really unfortunate that we now have a 28-day lockdown in Ontario and one would think that is going to at least keep the SP where it is and it could easily go lower to below Janes' last offer.

However, this is just more short-term noise and we just have to be patient until we get to the second half of the year. Hopefully we can at least get outdoor dining back at the start of May when the temperatures are better.

flamingogold wrote: There is one more sentence that follows the line below.
"The Fund expects to use this payment to fund operations and for general corporate purposes."

The $1,000,000 payment is a positive surprise but I don't expect to receive a dividend before all indoor dining is fully re-opened across all regions, which imo is coming in the 2H of the year. Confirmation of the 7th waiver extension is proof chance of default is low. Other than Ford shutting the province down, the release did finish off in an opitmistic tone .

"We are encouraged that COVID-19 vaccinations are now ramping up across Canada and we look forward to the potential easing of restrictions on our operations as the year progresses." "We continue our efforts to position SIR for long-term success and eventually enable the resumption of unitholder distributions."

jcw604 wrote: The following is in the NR:
Further the senior lender consented to SIR making a distribution to the Partnership and/or the Fund in an amount up to $1,000,000 for previously deferred royalty payments and/or payments of interest on the SIR Loan. This amount is expected to be paid in April 2021 .