Alaris Royalty Corp. Announces Closing of $100 Million Bought Deal Convertible Debenture Financing

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

[{"type":"text","content":"\n\n\n\nAlaris Royalty Corp. Announces Closing of $100 Million Bought Deal Convertible Debenture Financing\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\nCanada NewsWire\nCALGARY, June 11, 2019\n\n\n\n/NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW./\n CALGARY, June 11, 2019 /CNW/ - Alaris Royalty Corp. (\"Alaris\" or the \"Corporation\") (TSX:AD) is pleased to announce that it has closed its previously announced offering of $100,000,000 aggregate principal amount of convertible unsecured subordinated debentures (\"Debentures\") at a price of $1,000 per Debenture and an interest rate of 5.50% per annum, payable semi-annually on the last business day of June and December commencing December 31, 2019 (the \"Offering\"). A syndicate of underwriters co-led by CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets and Scotiabank and including Acumen Capital Finance Partners Limited, Desjardins Securities Inc., GMP Securities L.P. and Cormark Securities Inc. acted as underwriters for the Offering.\nAlaris plans to use the net proceeds (the \"Net Proceeds\") of the Offering to repay existing indebtedness under its senior credit facility (the \"Credit Facility\"). Once the Credit Facility is paid down with the Net Proceeds, Alaris will have approximately $120 million drawn on its Credit Facility. The indebtedness of Alaris under the Debentures is not included for the purposes of calculating Alaris' Funded Debt (as defined under the Credit Facility) and as a result, Alaris' senior debt to trailing twelve months EBITDA will be approximately 1.2x following closing of the Offering.  Alaris will then have undrawn funds of $180 million on the Credit Facility plus an additional $50 million on the accordion feature. The Debentures also lock in an attractive interest rate for Alaris for the next five years.\nThe Debentures are convertible at the holder's option at any time prior to the close of business on the earlier...

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