Alaris Equity Partners Announces a $75 Million Bought Deal Offering of 6.25% Convertible Unsecured Senior Debentures and a US$30 Million Investment Into a New Partner

Executive Summary

• Alaris Equity Partners announced a $75 million bought‑deal offering of 6.25% convertible unsecured senior debentures due 2030, with an underwriter option for an additional $11.25 million.
• The Trust completed a US$30 million investment in Renovo Medical Group, LLC (operating as Renew Medical Group), comprising US$26.5 million of preferred equity and US$3.5 million of common equity.
• Proceeds from the debenture offering will be used to partially repay senior credit facility indebtedness and fund future partner investments; the Renew investment brings Alaris’s year‑to‑date capital deployment to a record $385 million.

Key Details

• Debenture Offering:
• Aggregate principal amount: $75 million (CAD).
• Interest rate: 6.25% per annum, semi‑annual payments.
• Maturity: December 31, 2030.
• Price: $1,000 per debenture; underwriters have an option for up to $11.25 million additional principal, exercisable within 30 days post‑closing.
• Closing expected ≈ December 17, 2025.
• Conversion price: $27.00 per Unit, ratio 37.0370 Units per $1,000 of principal; convertible at holder’s option prior to the earlier of the business day before maturity or redemption notice.

• Redemption rights: Not redeemable before December 31, 2028; optional redemption thereafter subject to unit price thresholds (≥125% of conversion price for 2028‑2029 window).

• Use of Proceeds:

• Partial repayment of outstanding senior credit facility indebtedness.

• Potential redrawing of the facility to fund future partner investments and general trust purposes.

• Renew Investment Details:

• Total investment: US$30 million (US$26.5 M preferred equity + US$3.5 M common equity).
• Preferred equity provides an initial annualized distribution of US$3.71 million, yielding a pre‑tax annualized return of 14%, with adjustments tied to Renew’s revenue changes within a ±7% collar.

• Investment used for a minority recapitalization of Renew Medical Group, a provider of outsourced physician services across U.S. hospitals and surgical centers.

• Strategic Impact:

• Renew becomes Alaris’s 23rd partner and 17th common‑equity partner.
• Capital deployed YTD reaches ≈$385 million, a record for the Trust.

Notable Quotes

“We’re very excited to add Renew Medical as our 23rd partner and our 17th common‑equity partner,” said Steve King, President and CEO of Alaris.
“Renew’s strong growth, free cash flow generation and debt‑free balance sheet is the ideal partner for Alaris and our unit holders.”