Alaris Equity Partners Announces a US$55 Million Follow-On Investment

About this update from Alaris Equity Partners Income Trust Trust Units Reg S 3c7

[{"type":"text","content":"AlarisEqu-Investement\n \n \n \n Alaris Equity Partners Announces a US$55 Million Follow-On Investment\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n CALGARY, AB, Oct. 8, 2020\n \n \n \n \n \n \n \n \n /NOT FOR DISTRIBUTION IN THE UNITED STATES.  FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF\n \n UNITED STATES\n \n SECURITIES LAW./\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n Oct. 8, 2020\n \n /CNW/ - Alaris Equity Partners Income Trust (\n \n \"Alaris\"\n \n or the\n \n \"Trust\"\n \n ) (TSX: AD.UN) is pleased to announce that it has made a follow-on investment of\n \n US$55.0 million\n \n (the\n \n \"GWM Contribution\"\n \n ) in to GWM Holdings, Inc. (\n \n \"GWM\"\n \n ) and a subsidiary thereof.  The GWM Contribution results in an expected annual increase of approximately\n \n CDN$0.25\n \n (a 9% increase) and\n \n CDN$0.13\n \n (an 8% increase) of revenue and net cash from operations per unit respectively.  It is estimated that the GWM Contribution and associated cash flows from it will decrease Alaris' Run Rate Payout Ratio by over 5% to below 75%.\n \n \n \n \n \n \n \n \n \n Pursuant to the agreements (the\n \n \"GWM Agreements\"\n \n ) among Alaris, Alaris\n \n USA\n \n and GWM, Alaris and Alaris\n \n USA\n \n collectively made the GWM Contribution in exchange for an aggregate annualized distribution of\n \n US$6.6 million\n \n (the\n \n \"GWM Distribution\"\n \n ).  Due to the structure used for the GWM Contribution, the after-tax yield on the GWM Distribution is expected to be equivalent to that of a deal done at a first-year pre-tax yield of approximately 13%.  Commencing on\n \n January 1, 2022\n \n , the GWM Distribution will be adjusted annually based on the percentage change in gross revenue over the most recently completed 12-month period versus the prior 12-month period, subject to a collar of 8%.  A small portion of the GWM Distribution can be paid in kind (\"PIK\").  GWM used the proceeds from the GWM Contribution for liquidity....

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