SIR Royalty Income Fund Announces Filing of Amendment and Extension to SIR Corp. Credit Agreement. with its primary lender

BURLINGTON, ON, June 16, 2022 /CNW/ – SIR Royalty Income Fund (TSX: SRV.UN) (the “Fund”) announced today that SIR Corp. (“REC” or the “Company”), the operating entity from which the Fund’s equity income is ultimately derived, has entered into a ninth amending agreement (the “Ninth Amending Agreement”) to its credit agreement with its lender Principal (the “Lender”). The Ninth Amending Agreement, among other things, extends the maturity date of the Credit Agreement by July 6, 2022 at July 6, 2023without a change in price, and the financial clauses linked to the credit agreement revert to the initial financial clauses before the pandemic.

The following is a current summary of SIR’s credit facilities under the Ninth Amending Agreement:

  • Credit facility 1 – a $20.0 million renewable, bearing interest at the prime rate plus 3.25% or at the bankers’ acceptance rate plus 4.25%, the principal to be repaid on July 6, 2023. Facility 1 is currently unused.

  • Credit facility 2 – a $15.3 million term facility bearing interest at prime rate plus 3.25% or bankers’ acceptance rate plus 4.25%. Each advance under Credit Facility 2 is repayable in equal quarterly installments on a seven-year amortization basis. Facility 2 is currently fully depleted.

  • A $6.25 million Export Development Canada Guaranteed Facility (the “EDC Guaranteed Facility”), bearing interest at prime plus 3.5%. The facility secured by EDC is a 364 day revolving term facility which may be extended annually at the sole discretion of the lender. EDC’s secured facility is currently fully drawn.

  • A $6.13 million secured facility with the Business Development Bank of Canada (the “BDC Guaranteed Facility”), bearing interest at a fixed rate of 4%. The BDC Secured Facility is a 10-year revolving credit facility. BDC’s secured facility is currently fully utilized.

In connection with the Ninth Amending Agreement, the Fund and SIR Royalty Limited Partnership (the “Partnership”) have also entered into a recognition agreement (the “Recognition Agreement”) with the acknowledging lender, among other things:

  • receipt of a copy of the Ninth Amending Agreement, and

  • that none of the following: entering into the agreement, borrowing under the agreement, or performing any of the obligations under the agreement violates any of the terms or constitutes a event of default under any of the Fund’s or Partnership’s existing agreements with the Company.

Efficient September 15, 2021, having satisfied the conditions stipulated by SIR’s principal lender under the eighth amending agreement to its credit facilities, SIR has begun its repayment of deferred royalties to the limited partnership and deferred interest on the SIR loan to the Fund. Efficient June 15, 2022SIR has completed payment of deferred royalties due to the Partnership and deferred interest on the SIR loan due to the Fund.

The Ninth Amending Agreement and the Recognition Agreement are available through the Fund’s profile on the SEDAR website at

About SIR Corp.
SIR Corp. (“SIR”) is a privately held Canadian company that owns a portfolio of 52 restaurants in Canada. SIR’s Concept brands include: at Jack Astor Bar and Grill®, with 37 locations; and Scaddabush Italian Kitchen & Bar® with nine locations. SIR also operates one-of-a-kind “Signature” brands including Reds® Wine Tavern, Reds® Square One, Reds® Kitchen + Wine Bar Fallsview and The Loose Moose®. All trademarks related to the Concept and Signature marks mentioned above are used by SIR under a license and royalty agreement with SIR Royalty Limited Partnership. SIR also has a downtown Duke’s Refresher® & Bar location Toronto, and a seasonal Signature Restaurant, Abbey’s Bakehouse®, which are not currently considered part of the royalty pool. For more information on SIR Corp. or the SIR Royalty Income Fund, please visit

About SIR Royalty Income Fund
The Fund is a trust governed by the laws of the Province of Ontario which receives distribution income from its investment in SIR Royalty Limited Partnership and interest income from the SIR loan. The Fund intends to pay monthly distributions to Unitholders.

Caution Regarding Forward-Looking Statements
Certain statements contained in this report, or incorporated herein by reference, including information presented regarding the future financial or operational performance of the Fund or the SIR, which are not current or historical statements of fact, may constitute forward-looking information meaning of applicable securities laws (“forward-looking statements”). Statements regarding the objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and the activities, operations, financial performance and condition of the Fund, SIR Holdings Trust (the “Trust”), the Partnership, SIR, SIR Restaurants or industry results, are forward-looking statements. The words “may”, “will”, “should”, “would”, “could”, “expect”, “believe”, “plan”, “anticipate”, “intend”, ” believes” and other similar terms and the negative of these 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 which could cause the actual results, performance or achievements of the Fund, the Trust, the Limited Partnership, SIR, SIR restaurants or industry results to differ materially from the results, performance, achievements or anticipated developments expressed or implied by these 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 on such information. ion at any other date. Risks relating to forward-looking statements include, among others, challenges presented by a number of factors, including: the impact of the COVID-19 pandemic; market conditions at the time of such filing; competition; changes in demographic trends; Weather report; changing consumer preferences and discretionary spending habits; changes in consumer confidence; changes in national and local business and economic conditions; pandemics or other major disease outbreaks or safety issues affecting humans or animals or food products; the ability to maintain staffing levels; the impact of inflation, including on input prices and wages; the impact of the crisis on the Ukraine; changes in tariffs and international trade; changes in exchange rates and interest rates; changes in the availability of credit; legal proceedings and intellectual property rights challenges; the dependence of the Fund on the financial situation of the SIR; government laws and regulations, including the cost and/or availability of labor with respect to changes in minimum wage rates or other changes in labor laws and forced or other closures limits on restaurants and bars; laws affecting the sale and consumption of alcohol (including availability and enforcement); changes in cannabis laws; changes in environmental laws; confidentiality issues; accounting policies and practices; changes in tax laws; and the results of operations and financial condition of SIR. The foregoing list of factors is not exhaustive. Many of these issues may affect the actual results of the Fund or SIR 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. There can be no assurance that SIR will in the future meet all of its financial covenants under the credit agreement and imposed by the lender. 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 disclose or 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 undertake no obligation to update forward-looking statements if assumptions relating to such plans, estimates, projections, beliefs and opinions change. , except as expressly required by applicable securities laws.

In making the forward-looking statements contained herein, SIR’s management has assumed that it will successfully weather the effects of the COVID-19 pandemic and that business and economic conditions affecting SIR’s restaurants and the Fund will return to the normal in the medium term. .

Any forward-looking statements made herein are qualified by such cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that actual results or developments will materialize or, even if substantially , that they will have the expected consequences or effects on the Fund or the SIR.

For further information regarding the risks and uncertainties of the Fund, please refer to the March 22, 2022 Annual information form, for the period ended December 31, 2021and the Fund’s MD&A for the first quarter of 2022, which are available under the Fund’s profile at

SOURCE SIR Royalty Revenue Fund


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