Alaris Equity Partners Income 6 25 Senior Unsecured Debentures T.AD.DB.A

Big transaction in partnership with Brookfield!!!

[CanSiamCyp]

https://money.tmx.com/en/quote/AD.UN/news/5776645526472140/Alaris_Equity_Partners_Announces_US546_Million_Strategic_Investment_With_Brookfield_in_Body_Contour_Centers_LLC

[sergio2go]

A bit disapointed regarding the market's reaction with such news. Volume is average and so is the gain on the SP. Hoping that market will figure out the true value of this parternership.

[Capharnaum]

I think long term it will drive a better return for shareholders. However, short term, it reduces the cash flow they get from BCC since the prefs have a lower payment and yearly reset is only 1%.

[HermannHaller]

But they are receiving US$20.3 million to compensate for this, if I understand it right. The whole thing is very complicated, which is probably not helping the stock today. It may get another boost tomorrow when analysts write notes on the deal (and explain it all to dummies like me).

[Capharnaum]

I'm not saying it's not a good deal. From how it reads, they would have done a redemption otherwise. If you look at numbers, AD would have received close to $21M in 2023, which could have gone up to $24M in 5 years, with a redemption value of about $185M (up from current $160M). Now, prior to the extra revenue they can earn, they'll get $12M plus a management fee (I'm not

[HermannHaller]

Analysts seem positive on the deal, despite small drop in cash flow on new BCC preferreds. National Bk described it as 'short term pain for long term gain.' CIBC praises the vaildation of having Brookfield on board. CIBC raised their target to $22 from $20.