NOT FOR DISTRIBUTION IN THE UNITED STATES.
FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW
CALGARY, Alberta, Jan. 17, 2022 (GLOBE NEWSWIRE) -- Alaris Equity Partners Income Trust (“Alaris” or the “Trust”) (TSX: AD.UN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the “Underwriters”) led by CIBC Capital Markets, National Bank Financial and RBC Capital Markets pursuant to which the underwriters have agreed to purchase $65 million aggregate principal amount of listed senior unsecured debentures due March 31, 2027 (the “Debentures”) at a price of $1,000 per Debenture (the “Offering”). The Trust has also granted the Underwriters an option to purchase up to an additional $9.75 million aggregate principal amount of Debentures, on the same terms and conditions, exercisable in whole or in part, up to 30 days following closing of the Offering. The Offering is expected to close on or about February 4, 2022 (the “Closing Date”). Unless otherwise stated, all numbers in this press release are presented in Canadian dollars.
The Trust intends to use the net proceeds of the Offering to partially repay outstanding indebtedness under Alaris' subsidiary’s senior debt facility (the “Senior Debt Facility”) which may be subsequently redrawn and used to fund future investments in new Partner (as defined below) investments or general trust purposes.
The Debentures will bear interest at a rate of 6.25% per annum, payable semi-annually in arrears on the last business day of March and September of each year commencing on March 31, 2022. The first payment will include accrued and unpaid interest for the period from the Closing Date to, but excluding, March 31, 2022. The Debentures will mature on March 31, 2027 (the “Maturity Date”).
The Debentures will not be redeemable by the Trust before March 31, 2025 (the “First Call Date”). On and after the First Call Date and prior to March 31, 2026, the Debentures will be redeemable, in whole or in part, from time to time at the Trust’s option at a redemption price equal to 103.125% of the principal amount of the Debentures redeemed plus accrued and unpaid interest, if any, up to but excluding the date set for redemption. On and after March 31, 2026 and prior to the Maturity Date, the Debentures will be redeemable, in whole or in part, from time to time at the Trust’s option at par plus accrued and unpaid interest, if any, up to but excluding the date set for redemption. The Trust shall provide not more than 60 nor less than 30 days’ prior notice of redemption of the Debentures. The Trust has the option to satisfy its obligations to repay the principal amount of and premium (if any) on the Debentures due at redemption or on maturity of the Debentures by issuing and delivering that number of freely tradeable trust units of the Trust to Debenture holders in accordance with the terms of the Indenture.
A preliminary short form prospectus will be filed with securities regulatory authorities in all provinces of Canada, other than the province of Qubec. The Offering is subject to customary regulatory approvals, including the approval of the Toronto Stock Exchange and the approval of the lenders under the Senior Debt Facility.
This new release is not an offer of securities of Alaris for sale in the United States. The Debentures have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and the Debentures may not be offered or sold in the United States except pursuant to an applicable exemption from such registration. No public offering of securities is being made in the United States. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
ABOUT ALARIS
Alaris, through its subsidiaries, provides alternative financing to private companies ("Partners") in exchange for distributions, dividends and interest (“Distributions”) with the principal objective of generating stable and predictable cash flows for dividend payments to its unitholders. Distributions from the Partners are adjusted each year based on the percentage change of a "top line" financial performance measure such as gross margin and same-store sales and rank in priority to the owners' common equity position.
www.alarisequitypartners.com
https://www.globenewswire.com/en/news-release/2022/01/17/2367853/0/en/Alaris-Equity-Partners-Announces-65-Million-Bought-Deal-Offering-of-6-25-Senior-Unsecured-Debentures.html