CALGARY, Alberta, Dec. 01, 2025 (GLOBE NEWSWIRE) -- (all numbers in this release are in Canadian dollars (CAN$) unless otherwise noted)
Alaris Equity Partners (TSX:AD) ("Alaris" or the "Trust") is pleased to announce a $75 million bought deal offering of 6.25% convertible unsecured senior debentures and the completion of a US$30 million investment into a new Partner, Renovo Medical Group, LLC, operating as Renew Medical Group.
The Offering
Alaris is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the "Underwriters") led by National Bank Financial Inc. and CIBC World Markets Inc. pursuant to which the Underwriters have agreed to purchase $75 million aggregate principal amount of convertible unsecured senior debentures due December 31, 2030 (the "Debentures") at a price of $1,000 per Debenture (the "Offering"). The Trust has also granted the Underwriters an option to purchase up to an additional $11.25 million aggregate principal amount of Debentures, on the same terms and conditions, exercisable in whole or in part, up to 30 days following closing of the Offering. The Offering is expected to close on or about December 17, 2025 (the "Closing Date"). Unless otherwise stated, all numbers in this press release are presented in Canadian dollars.
The Trust intends to use the net proceeds of the Offering to partially repay outstanding indebtedness under its senior credit facility (the "Senior Credit Facility") which may be subsequently redrawn and used to fund future investments in new Partner (as defined below) investments and for general trust purposes.
The Debentures will bear interest at a rate of 6.25% per annum, payable semi-annually in arrears on the last business day of June and December of each year commencing on June 30, 2026. The first payment will include accrued and unpaid interest for the period from the Closing Date to, but excluding, June 30, 2026. The Debentures will mature on December 31, 2030 (the "Maturity Date").
The Debentures will be direct senior unsecured obligations of the Trust and will rank subordinate to all existing and future senior secured indebtedness of the Trust and any of its subsidiaries, including pursuant to the Senior Credit Facility, and pari passu with each debenture issued under the debenture indenture dated June 2, 2025 between the Trust and Computershare Trust Company of Canada, as supplemented by the supplemental indenture to be entered into in connection with the Offering, in each case governing the Debentures (the "Trust Indenture") and with all other present and future unsubordinated indebtedness of the Trust, including the Trust's senior unsecured debentures due March 31, 2027 and the Trust's senior unsecured convertible debentures due June 30, 2030, as further detailed in the Trust Indenture. The payment of principal and premium, if any, of, and interest on, the Debentures will be subordinated in right of payment to all senior secured indebtedness. The Trust Indenture will not restrict the Trust or its subsidiaries from incurring additional indebtedness or from mortgaging, pledging or charging its properties to secure any indebtedness or liabilities. None of the Trust's subsidiaries will guarantee the Debentures.
The Debentures will be convertible at the holder's option into units of the Trust ("Units") at any time prior to the earlier of the close of business on the business day immediately preceding: (i) the Maturity Date; and (ii) if called for redemption, the business day immediately preceding the date fixed for redemption of the Debentures at a conversion price of $27.00 per Unit, being a ratio of 37.0370 per $1,000 principal amount of Debentures, subject to adjustment in certain events. The Debentures are not redeemable by Alaris before December 31, 2028. On and after December 31, 2028 and prior to December 31, 2029, the Debentures may be redeemed in whole or in part from time to time at ...
