Priszm Income Fund QSR.UN-T

, the fund behind most of Canada’s KFC chicken restaurants and Pizza Hut and Taco Bell fast-food outlets, says it has obtained a waiver on some of its financial covenants and an amendment to its long-term debt and operating loans for the fourth quarter.

The Toronto-based company said late Wednesday it expects to complete further financing talks with its lenders in the first quarter of 2010. The talks will reflect Priszm’s capital commitments agreed to under its franchise agreements with Yum! Restaurants International (Canada), as well as the Christmas Eve sale of its food processing plant in Toronto for $11.5-million.

Priszm owns about 60 per cent of Priszm LP, which owns and operates more than 400 quick-service restaurants in seven provinces under the KFC, Taco Bell and Pizza Hut brands.

The restaurant chains employ 7,400 people.

Last week, Priszm sold its Sequel Foods plant in Toronto that supplied its outlets and other customers with salads.

Funds from the sale will be used to upgrade 75 of Priszm’s KFC restaurants.

Priszm receives payments for the use of the KFC, Taco Bell and Pizza Hut restaurant brands.

It expects to have more than 150 restaurants under long-term franchise agreements in place by the end of next year.