Priszm IPO brings in $150-million

…will make initial payouts of 12 per cent a year. The company had sales of $482-million last year, and earnings before interest, taxes, depreciation and amortization of $46.7-million. The company will use $25-million from the IPO proceeds to develop multibrand restaurants, the sale documents say.

The Globe and Mail
November 4, 2003

Priszm IPO brings in $150-million

TORONTO — Priszm Brandz LP, operator of KFC, Pizza Hut and Taco Bell restaurants in Canada, has raised $150-million in an initial public offering.

Priszm Brandz, owned by Toronto businessman John Bitove Jr., sold 15 million income trust units at $10 each, the company said in a statement released by Canada NewsWire. The company may raise another $15-million to meet demand 30 days after the sale is completed next week and will make initial payouts of 12 per cent a year.

The Priszm Canadian Income Fund will own 63.9 per cent of a partnership that operates 466 KFC restaurants in seven provinces, including 52 locations that also offer Taco Bell or Pizza Hut.

The Canadian affiliate of Louisville, Ky.-based Yum Brands Inc. owns 50 per cent of Priszm. Mr. Bitove's Scott's Restaurants Inc. owns the other half.

The company had sales of $482-million last year, and earnings before interest, taxes, depreciation and amortization of $46.7-million. The company will use $25-million from the IPO proceeds to develop multibrand restaurants, the sale documents say.


Risks: Multi-tradename franchisors are often the most ruthless, Income trusts, Canada, 20031104 Priszm IPO

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