BURLINGTON, ON, Aug. 28, 2013 /CNW/ - SIR Corp. ("SIR"), which has a
number of agreements and interests related to SIR Royalty Income Fund
(the "Fund") (TSX: SRV.UN), announced today that it has entered into a
Second Amended and Restated Loan Agreement (Loan Agreement) with its
existing senior lender GE Capital to add a new $4.0 million Tranche B
Development Loan to the existing $12.0 million Tranche A Development
Loan and the existing $26.0 million Term Loan. Under the terms of the
Loan Agreement, the term of the Tranche B Development Loan will be
coterminous with the existing facilities (November 14, 2016).
Additionally, under the terms of the Loan Agreement, Tranche B is
intended to be drawn by October 10, 2013. Such date can be extended
until April 10, 2014, at the sole discretion of GE Capital. A copy of
the Amendment will be filed on SEDAR.
The Tranche B Development Loan is available to enable SIR to finance:
(a) costs incurred in connection with the acquisition of furniture,
fixtures, equipment and leasehold improvements relating to new
locations, and (b) renovations and capital expenditure costs relating
to existing locations.
Peter Fowler, President and CEO of SIR Corp., stated: "This additional
senior debt with GE Capital further enhances our flexibility to finance
prudent growth through the development of new corporately owned
restaurants, as well as renovation programs for our existing
restaurants. We expect that new restaurant growth and renovations of
existing restaurants, as market conditions permit, will benefit both
SIR Corp. and, ultimately, the unitholders of the Fund."
The financial covenants applicable to SIR, including a minimum fixed
charge coverage ratio and senior debt leverage ratio, remain the same.
The loan is secured by substantially all of the assets of SIR and most
of its subsidiaries, which are also guarantors. The SIR Royalty Limited
Partnership (the "Partnership") and the Fund have not guaranteed the
loan, but have, as contemplated in existing agreements, agreed to
continue to subordinate and postpone their claims against SIR to the
claims of GE Capital.
About SIR Corp.
SIR Corp. (SIR) is a privately held Canadian corporation that owns and
operates a portfolio of 54 restaurants in Canada. SIR's Concept brands
include: Jack Astor's Bar and Grill®, with 37 locations; Alice
Fazooli's®, together with Scaddabush™, for a total of four locations;
and Canyon Creek Chop House®, with eight locations. SIR also operates
one-of-a-kind "Signature" brands in downtown Toronto, which comprise
the upscale Reds® Wine Tavern, Far Niente®/FOUR®/Petit Four®, and the
Loose Moose Tap & Grill®. All trademarks related to the Concept and
Signature brands noted above are used by SIR under a License and
Royalty Agreement with SIR Royalty Limited Partnership in consideration
for a Royalty, payable by SIR to the Partnership, equal to six percent
of the revenue of the 49 restaurants currently included in the Royalty
pool. SIR also owns and operates two seasonal Signature restaurants:
Abbey's Bakehouse™ and Duke's Refresher™. These two restaurants are not
currently part of Royalty Pooled Restaurants. For more information on
SIR or the SIR Royalty Income Fund, please visit www.sircorp.com.
About SIR Royalty Income Fund
The Fund is a trust governed by the laws of the province of Ontario that
receives distribution income from its investment in the SIR Royalty
Limited Partnership and interest income from the SIR Loan. The Fund
intends to pay distributions to unitholders on a monthly basis.
Caution concerning forward-looking statements
Certain statements contained in this report, or incorporated herein by
reference, including the information set forth as to the future
financial or operating performance of the Fund or SIR, that are not
current or historical factual statements may constitute forward-looking
information within the meaning of applicable securities laws
("forward-looking statements"). Statements concerning the objectives,
goals, strategies, intentions, plans, beliefs, expectations and
estimates, and the business, operations, financial performance and
condition of the Fund, the SIR Holdings Trust (the "Trust"), the
Partnership, SIR, the SIR Restaurants or industry results, are
forward-looking statements. The words "may", "will", "would", "expect",
"believe", "plan", "anticipate", "intend", "estimate" and other similar
terminology and the negative of such expressions are intended to
identify forward-looking statements, although not all forward-looking
statements contain these identifying words. Forward-looking statements
involve known and unknown risks, uncertainties and other factors that
may cause the actual results, performance or achievements of Fund, the
Trust, the Partnership, SIR, the SIR Restaurants or industry results,
to differ materially from the anticipated results, performance,
achievements or developments expressed or implied by such
forward-looking statements. These statements reflect Management's
current expectations, estimates and projections regarding future events
and operating performance and speak only as of the date of this
document. Readers should not place undue importance on forward-looking
statements and should not rely upon this information as of any other
date. Risks related to forward-looking statements include, among other
things, challenges presented by a number of factors, including:
competition; changes in demographic trends; changing consumer
preferences and discretionary spending patterns; changes in consumer
confidence; changes in national and local business and economic
conditions; changes in availability of credit; legal proceedings and
challenges to intellectual property rights; dependence of the Fund on
the financial condition of SIR; legislation and governmental
regulation; accounting policies and practices; and the results of
operations and financial condition of SIR. The foregoing list of
factors is not exhaustive. Many of these issues can affect the Fund's
or SIR's actual results and could cause their actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, the Fund or SIR. Given these
uncertainties, readers are cautioned that forward-looking statements
are not guarantees of future performance, and should not place undue
reliance on them. The Fund and SIR expressly disclaim any obligation or
undertaking to publicly release any updates or revisions to any forward
looking statements. Forward-looking statements are based on
Management's current plans, estimates, projections, beliefs and
opinions, and the Fund and SIR do not undertake any obligation to
update forward-looking statements should assumptions related to these
plans, estimates, projections, beliefs and opinions change, except as
expressly required by applicable securities laws.
In formulating the forward-looking statements contained herein,
Management has assumed that business and economic conditions affecting
SIR's restaurants and the Fund will continue substantially in the
ordinary course, including without limitation with respect to general
industry conditions, competition, general levels of economic activity
(including in downtown Toronto), regulations (including those regarding
employees, food safety, tobacco and alcohol), weather, taxes, foreign
exchange rates and interest rates, that there will be no pandemics or
other material outbreaks of disease or safety issues affecting humans
or animals or food products, and that there will be no unplanned
material changes in its facilities, equipment, customer and employee
relations, or credit arrangements. These assumptions, although
considered reasonable by Management at the time of preparation, may
prove to be incorrect. In particular, Management has assumed that the
tax effects on distributions will remain consistent with current
regulations or pronouncements, and also in estimating the revenue for
new restaurants, Management has assumed that they will operate
consistent with other similar SIR restaurants. For more information
concerning the Fund's risks and uncertainties, please refer to the
March 28, 2013 Annual Information Form, for the period ended December
31, 2012, which is available under the Fund's profile at www.sedar.com.
All of the forward-looking statements made in this report are qualified
by these cautionary statements and other cautionary statements or
factors contained herein, and there can be no assurance that the actual
results or developments will be realized or, even if substantially
realized, that they will have the expected consequences to, or effects
on, the Fund or SIR.
This document is being placed on www.sedar.com by SIR Corp. on a voluntary basis. It is not being placed by, or with
the approval of, or on behalf of the SIR Royalty Income Fund, or any of
its trustees or officers, or by SIR GP Inc., or SIR Holdings Trust, or
their respective trustees, managing general partners, directors or
officers, has not been approved by any of them, and is not to be
regarded as a document placed, filed, furnished or submitted by, or on
behalf of any of them, or by anyone with actual, implied or apparent
authority to act on behalf of any of them. None of them has approved,
authorized, permitted or acquiesced to the contents of this document.
SOURCE SIR Royalty Income Fund
