KEG Royalties Income Fund T.KEG.UN

Alternate Symbol(s): KRIUF

Consumer Cyclical Restaurants

The Keg Royalties Income Fund (the Fund) is a limited-purpose open-ended trust. The Fund’s objective is to provide consistent monthly distributions to unitholders at the highest sustainable level. The Fund, through its subsidiary The Keg Rights Limited Partnership (the Partnership), purchased The Keg trademarks and other related intellectual property (the Keg Rights) from Keg Restaurants Ltd. (KRL). The business of the Partnership is the ownership of the Keg Rights and, through a License and Royalty Agreement with KRL to exploit the use of the Keg Rights and the collection of the royalty payable under the License and Royalty Agreement equal to 4% of gross sales of Keg restaurants included in a specific pool (the Royalty Pool). KRL’s principal activity is the operation and franchising of Keg steakhouse and bar restaurants in Canada and the United States. The Keg GP Ltd. is the general partner of the partnership and administrator of the Fund.

TSX:KEG.UN - Post by User

KEG Royalties Income Fund > two things to note

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Comment by Robsopinionon Sep 18, 2023 12:30pm

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Post# 35641570

RE:RE:two things to note

The fund has an outstanding loan to keg restaurants for 57 million dollars paying 7.5% interest. Effectivley the fund loans the money to build out the new restaurants in return for the royalty stream. this is also the case with SRV. The distributable cash to unit holders comes from both the royalty stream and the loan repayment/interest.
$18 would be too low for me, I would fight for more.

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