Alaris Equity closes $115-million debenture offering

Executive Summary

• Alaris Equity Partners Income Trust has closed a $115 million bought deal offering of 6.25% convertible unsecured senior debentures.
• The offering was led by National Bank Capital Markets and CIBC Capital Markets, including the full exercise of a $15 million overallotment option.
• Net proceeds will be used to partially repay outstanding indebtedness under a subsidiary's senior credit facility, with the facility potentially being redrawn for future investments.

Key Details

• Transaction Size: $115 million aggregate principal amount of debentures issued.
• Price: $1,000 per debenture.
• Overallotment: The $15 million overallotment option granted to underwriters was fully exercised.
• Interest Rate: 6.25% per annum, payable semi-annually in arrears on June 30 and December 31.
• First Payment Date: June 30, 2026 (includes accrued interest from closing date).
• Maturity Date: December 31, 2030.
• Trading Symbol: AD.DB.C on the Toronto Stock Exchange.
• Use of Proceeds: Partial repayment of outstanding indebtedness under Alaris's subsidiary's senior credit facility; remaining capacity may be redrawn for future partner investments or general trust purposes.
• Underwriters: National Bank Capital Markets, CIBC Capital Markets, Desjardins Capital Markets, Acumen Capital Finance Partners Ltd., Raymond James Ltd., RBC Capital Markets, Scotiabank, and Cormark Securities Inc.