Alaris Equity Partners Income 5 50 convertible unsecured subordinated Debentures T.AD.DB

Alternate Symbol(s): T.AD.DB.A | T.AD.UN | ADLRF

Financial Services Asset Management

Alaris Equity Partners Income Trust (the Trust) is a Canada-based private equity company. The Trust, through its subsidiaries, provides alternative financing to private companies. The Trust’s operations consist primarily of investments in private operating entities. The principal objective of the Trust is to generate stable and predictable cash flows for payment of distributions to unitholders of the Trust. The Trust offers a range of services, which include services, healthcare services, industrial services, professional services, information technology services, and construction-related services. The Company’s investments are made through a wholly owned Canadian corporation, Alaris Equity Partners Inc., and its American investments are made through, Alaris Equity Partners USA Inc. (Alaris USA) and Salaris USA Royalty Inc. (Salaris USA). The Trust also has a wholly owned subsidiary in the Netherlands, Alaris Cooperatief U.A. (Alaris Cooperatief).

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Alaris Equity Partners Income 5 50 convertible unsecured subordinated Debentures

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Post by retiredcfon Apr 17, 2024 8:57am

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Post# 35993367

RBC

April 16, 2024

Alaris Equity Partners Income Trust
Announces redemption of Brown & Settle investment

TSX: AD-U | CAD 15.83 | Sector Perform | Price Target CAD 18.00

Sentiment: Neutral

Summary: Alaris announced the redemption of its interest in Brown & Settle (closed April 12, 2024) generating gross proceeds of US$71.5MM (C$97.8MM). Alaris indicated the total return was US$30.8MM (C$42.2MM) resulting in an unlevered IRR of 15% and a multiple of invested capital (MOIC) of 1.5x. Following the redemption, Alaris will have a proforma total senior debt-to-EBITDA ratio of ~1.14x. Additionally, Alaris estimates its Run Rate Payout Ratio to be in the 65-70% range post-redemption.

Our view: The Brown & Settle redemption represents another positive investment by Alaris and the proceeds give the company greater financial flexibility to manage how to handle its upcoming convertible debenture maturity and potential new investment opportunities.