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

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

Financial Services Asset Management

Alaris Equity Partners Income Trust (the Trust) is a Canada-based trust. The Trust’s operations consist of investments in private operating entities, typically in the form of preferred or common limited partnership interests, preferred or common interest in limited liability corporations in the United States, and loans receivable. The Trust’s Canadian investments are made through a wholly owned Canadian corporation, Alaris Equity Partners Inc. and its American investments are made through two Delaware corporations, Alaris Equity Partners USA Inc., Salaris USA Royalty Inc., and their subsidiaries.

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Alaris Equity Partners Income 6 25 Senior Unsecured 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.