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Dri Healthcare Trust T.DHT.UN

Alternate Symbol(s):  DHTRF

DRI Healthcare Trust is an open-ended trust that provides unitholders with differentiated exposure to the anticipated growth in the global pharmaceuticals and biotechnology markets. Its business model is focused on managing and growing a diversified portfolio of pharmaceutical royalties to deliver attractive growth in cash royalty receipts over the long term. Geographically, it has a presence in the United States; European Union; Japan, and Rest of the world.


TSX:DHT.UN - Post by User

Comment by HermannHalleron Feb 08, 2023 10:40am
175 Views
Post# 35274326

RE:New Financing

RE:New FinancingI think you should look at it like a 5-yr bond issue. The idea is that it would be refinanced, as most companies (that plan to continue in operation) continue to refinance and repay debt on an ongoing basis. Unless of course the company is acquired.

Remember that there is plenty of insider ownership, they had no obligation to do this, they must see it as a positive move. Clearly they believe the growth opportunity out-weighs the refinancing risk. 

mjh9413 wrote:

 Am I understanding this??!
From NR:
"...will not be redeemable by the Trust prior to December 27, 2027, except in the event of a change of control of the Trust, in which case the Preferred Securities will be subject to a mandatory redemption.

The interest rate on the Series A Preferred Securities will increase to 10% per annum if any of the Series A Preferred Securities are outstanding on January 1, 2028..."
So, they have to pay  $6,6MM cash interest each year til 2027 and if any prefs remaining after effectively 12/31/2027 they increase int rate to 10% and ,of course, it might all be outstanding on that date given that is when repayment can first be made. To avoid outstanding they need to accrue $95MM by that date (making it unnvestaable money) or else get new financing. In addition to all this negative, my biggest beef about this deal is that we know the money is not deployed immediately so it is all cost and no income (for how long?) on every dollar not deployed.
I must havee it wrong.



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