RE:RE:RE:Alaris Royalty Corp. Announces Sandbox SaleCan you back up your numbers for $80M invested ?
I have the number at $60.8 M total invested and drawn by Sandbox. From MD&A - Q3 2019: In March 2016, the Corporation purchased preferred units in Sandbox for an aggregate acquisition cost of
US$22.0 million.
The Corporation contributed an
additional US$6.0 million in September 2017 to finance an acquisition and a
further US$7.0 million in December 2017 to fund a performance earn out. The Sandbox distribution resets annually +/-6% based on net revenue.
In October 2018, the Corporation assumed the outstanding senior debt in Sandbox
consisting of US$6.6 million of amortizing term debt and
US$7.4 million of an asset backed lending facility. The purchase of the senior debt provides the Corporation with additional control over the distribution of the free cash flow generated by Sandbox providing more certainty over future distributions. The term debt has annual repayments of US$1.6 million and both the term debt and revolver have LIBOR linked interest rates, accrued monthly. The senior debt also provides additional rights and remedies in addition to the Corporation’s preferred equity rights.
On February 22, 2019, the Corporation contributed an
additional US$5.0 million in exchange for annualized distributions of US$0.8 million. The new preferred units have a minimum repurchase premium of US$1.0 million and may include a percentage of common equity upon redemption. The proceeds were used to fund working capital.
On June 27, 2019, the Corporation contributed an additional US$3.0 million on Sandbox outstanding senior revolving credit facility outstanding with the Corporation. The terms were consistent with those in place. The proceeds were used to fund working capital.
In the three months ended September 30, 2019, Sandbox drew an additional US$3.8 million on the senior revolving credit facility which is outstanding with the Corporation.
borne2run wrote: Never good news when a company issues a press release a few hours afetr a Friday market close.
The total investment in Sandbox was approx $80 million.
Q1 will likely have a $50+ millon write down, partially offset by the gain on the SBI redemption.
Could be in the $1.25 per share.range.
Ouch !.
Those on the sidelines may want to wait for the earnings call.