Alaris Equity Partners Announces a $75 Million Bought Deal Offering of 6.25% Convertible Unsecured Senior Debentures and a US$30 Million Investment Into a New Partner

Core Viewpoint - Alaris Equity Partners announces a $75 million offering of convertible unsecured senior debentures and a $30 million investment in Renovo Medical Group, enhancing its portfolio and financial position. Offering Details - Alaris has entered into an agreement with underwriters to purchase $75 million of convertible unsecured senior debentures due December 31, 2030, at a price of $1,000 per debenture [2] - An additional option for underwriters to purchase up to $11.25 million of debentures is available within 30 days following the offering's closing [2] - The offering is expected to close around December 17, 2025 [2] Use of Proceeds - The net proceeds from the offering will be used to partially repay outstanding debt under the senior credit facility and to fund future investments [3] Debenture Terms - The debentures will carry an interest rate of 6.25% per annum, payable semi-annually starting June 30, 2026 [4] - They will mature on December 31, 2030, and will be convertible into units of the Trust at a conversion price of $27.00 per unit [6] Investment in Renew Medical Group - Alaris has completed a $30 million investment in Renovo Medical Group, which provides outsourced physician services to hospitals and surgical centers in the U.S. [10] - The investment consists of $26.5 million in preferred equity and $3.5 million in common equity, yielding an initial annualized distribution of $3.71 million, equating to a pre-tax annualized yield of 14% [12] - This investment aligns with Alaris' strategy of targeting strong, profitable private businesses to enhance its cash flow base [13] Financial Performance - With the closing of the Renew investment, Alaris has deployed approximately $385 million in capital year-to-date, marking a record for the Trust [13] - The investment in Renew is expected to contribute positively to Alaris' financial performance through stable distributions and potential capital appreciation [14]