Alaris Equity Partners Expands Convertible Debenture Financing
Alaris Equity Partners Expands Convertible Debenture Financing
CALGARY, Alberta — Alaris Equity Partners Income Trust (“Alaris” or the “Trust”) (TSX: AD.UN) is thrilled to share exciting news regarding its recent financing initiative. Due to strong interest from investors, Alaris has partnered with a group of underwriters led by National Bank Financial Inc., CIBC Capital Markets, and Desjardins Capital Markets to increase the scale of its previously announced convertible unsecured senior debentures. This decision comes in response to overwhelming demand for their offering.
As part of this new agreement, Alaris will issue 80,000 convertible unsecured senior debentures, which are set to mature on June 30, 2030. Each debenture will carry a price tag of $1,000, resulting in total expected gross proceeds of $80 million. Additionally, the underwriters have the option to acquire up to $12 million more in debentures over the next 30 days. This strategy not only reflects the confidence in Alaris’ business model but also aims to ensure the Trust is well-equipped to meet its investment ambitions moving forward.
Investment Strategy and Goals
The investment approach undertaken by Alaris, via its subsidiaries, is centered around structured equity investments in a diverse range of private companies, referred to as “Partners.” By focusing on structured equity, Alaris strives to provide stability and reliability to its unitholders through consistent cash distributions and capital growth. This strategic focus on common equity positions enables the Trust to align its interests with the founders of these Partner businesses.
Closing Date and Regulatory Approvals
The company anticipates that the offering will close around June 2, 2025, although this timeline is contingent upon receiving all necessary regulatory approvals, including from the Toronto Stock Exchange. In line with transparency requirements, a preliminary short form prospectus will be filed with securities regulators across all provinces of Canada, excluding Québec.
Understanding Risks and Assumptions
As with any offering, investors should be mindful of the inherent risks and uncertainties. Forward-looking statements regarding the expected closing date, intended use of proceeds, and performance of the Partners are accompanied by various assumptions. These include expectations regarding the timeliness of obtaining regulatory approvals and the performance of both existing and new Partners within Alaris’ portfolio.
Factors Affecting Future Performance
The ability of Alaris to meet financial goals in the coming years depends significantly on its operational performance, market conditions, and where financial markets are headed. It is essential to understand that various factors, such as economic conditions in Canada and worldwide, can substantially impact the results anticipated by the Trust and its Partner companies. Alaris remains committed to maintaining robust communication with its stakeholders regarding these factors.
Long-term Vision and Strategy
Alaris continuously seeks to expand its reach in the investment landscape. By recognizing shifts in market demands and adapting its strategy accordingly, the Trust aims to position itself as a reliable source of capital for private businesses seeking alternative financing options. The goal is not just to grow in size but to enhance the overall performance of the Trust while delivering attractive returns to unitholders.
Contact Information
For more information about Alaris Equity Partners and the recent financing announcement, feel free to reach out to the company directly. Contact details are provided below:
Email: ir@alarisequity.com
Phone: (403) 260-1457
Address: Alaris Equity Partners Income Trust
Suite 250, 333 24th Avenue S.W.,
Calgary, Alberta T2S 3E6
Website: www.alarisequitypartners.com
Frequently Asked Questions
What is the purpose of the recent offering by Alaris?
The recent offering is intended to raise capital through the sale of convertible unsecured senior debentures due June 30, 2030, to enhance the company’s financing capabilities.
How much will Alaris raise through the debenture offering?
Alaris expects to raise a total of $80 million through the sale of 80,000 debentures, with potential additional proceeds of up to $12 million.
When is the expected closing date for the offering?
The expected closing date is around June 2, 2025, but is subject to regulatory approvals.
What are the investment strategies of Alaris?
Alaris primarily invests in structured equity across a diverse range of private businesses, aiming to deliver stable returns to its unitholders.
Who can I contact for more information about Alaris Equity Partners?
You can reach out to them at ir@alarisequity.com or call (403) 260-1457 for any inquiries.
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