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

Unit Price Up First Please-Then Divy Increase-Scotia Analysi

[SunsetGrill]

Scotia Analysis below - I think the mrk spoke loud and clear over the years - they will not pay up for the units with a payout ratio @ or above 80%. 

I have held this basically since it became a public company. I believe Mr King is now shifted gears somewhat and is now targeting a long term payout ratio of no more than 60%.(which he has stated several times on the c. calls) Prior, if any company came into trouble AD.UN always had vultures circling saying the divy was in trouble. Bascially the high payout ratio kind of tied their hands into bailing AD out of difficult situations (hammering the share price) and provided little room for growth.

While I would like a divy increase as much as the next guy - I hope not as share apprciation is much more valuable to me. With the divy at roughly 8% there is absolutly no need to bump it up.

Solid mgmt in Mr King and his team - he may bump the divy but it wont be a big one - and as i stated it has not even been a year since the cut and yeilding 8% now is not the time.
 
Alaris Equity Partners Income Trust Positive Start to the Year with a Couple of Deals and Resumption of Planet Fitness Distribution OUR TAKE: Positive. Alaris issued a press release, announcing (1) US$74M of deals in two new investments, and (2) partial resumption of the PFGP distribution through the first half of the year, followed by the full resumption in the second half. With the resumption of the PFGP distribution, we believe management appears to have addressed a key investor concern for the stock given the uncertainty around the distribution amid the COVID-19 pandemic. While the first half of the year will only see roughly 40% of the distribution collected, prior to the full resumption in the second half, management still expects to make up the deferred distributions over time. Despite a challenging 2020, Alaris was still able to find attractive investment opportunities, having deployed ~C$171M of gross capital last year (above its five-year average) given the Edgewater deal was completed prior to year-end. Including the FNC Investment, Alaris has now deployed over C$222M over the LTM, with management maintaining its deal pipeline remains active with a number of mandates under review. Increasing target price to $17.00 (was $16.00), but maintaining our SP rating. KEY POINTS Alaris made a US$34M investment in Edgewater Technical Associates – a professional and technical services firm primarily supporting the U.S. Department of Energy and the U.S., U.K., and Canadian Commercial Nuclear industry to go along with additional private sector offerings. The deal comprises a $30.6M investment of preferred equity (14% yield) and a $3.4M minority common equity stake. Management believes Edgewater would have an ECR between 1.2x and 1.5x. The Falcon Master Holdings (FNC) investment comprises a $32.2M preferred equity investment (14% yield) and a $7.85M minority ownership of common equity. Founded in 2007, FNC is a full-service title and settlement company, which specializes in reverse mortgages and operates in 49 states in the U.S. with ~80 employees. Alaris believes FNC would have an ECR above 2.0x. AD now has ~C$296M drawn on its credit facility and $53M available for investment purposes. Given its senior debt to EBITDA covenant now sits at 2.7x on a pro-forma basis, management expects to lower its debt levels from proceeds from potential redemptions in the coming months