Alaris Royalty Corp. Contributes US$15 Million to a New Partner and an Additional US$3 Million to Accscient

NOT FOR DISTRIBUTION IN THE UNITED STATES. 

FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

CALGARY, Alberta, June 18, 2018 (GLOBE NEWSWIRE) -- Alaris Royalty Corp. ("Alaris" or the "Corporation") (TSX:AD) is pleased to announce that it has contributed US$15.0 million (approximately CAD$19.5 million) (the “Fleet Contribution”) to Fleet Advantage, LLC (“Fleet”), which will entitle Alaris to an annual distribution of US$2.1 million (approximately CAD$2.7 million) (the “Fleet Distribution”). The Corporation is also pleased to announce it has contributed an additional US$3.0 million (CAD$3.9 million) to Accscient, LLC (the “Accscient Contribution”) in exchange for an additional US$0.4 million (CAD$0.6 million) of distributions from Accscient.  The Fleet Distribution accounts for approximately 4% of Alaris’ annualized revenue and both deals above are accretive to cash flow adding over $0.04 cents per share to Alaris’ net cash from operations (after tax).  Alaris has approximately $150.0 million of undrawn capacity on its credit facility following today’s announcement.

New Partner – Fleet Advantage, LLC

Alaris entered into subscription and operating agreements with Fleet, pursuant to which Alaris made the US$15.0 million Fleet Contribution in exchange for preferred units in Fleet (the “Fleet Units”), which entitle Alaris to the US$2.1 million Fleet Distribution for the first full year following the transaction. Fleet has the option to pay a portion of the Fleet Distribution, subject to a maximum of 2% (US$0.3 million in the first year) of the annualized yield in any given year as payment-in-kind (“PIK”) provided that any amounts subject to the PIK must be paid every three years.  US$7.5 million of the Fleet Units are redeemable at par at any time.  The Fleet Distribution will be adjusted annually (commencing January 1, 2020) based on the change in net revenues, subject to a 6% collar.  The Fleet Contribution was used to fund continued growth and provide partial liquidity to existing shareholders.

“Alaris is excited to partner with a best in class business and best in class management team and we look forward to our partnership with Fleet over the coming years,” said Gregg Delcourt, Alaris Senior Vice President, Small Cap Investments.

Fleet serves America’s top truck fleets and guarantees the absolute lowest cost of operation by providing truck leasing and matching proprietary data driven IT processes with fleet analytics using the latest eco-efficient clean diesel technology to achieve optimum vehicle productivity, while reducing operating costs. Fleet Advantage is ranked as one of the fastest-growing privately held companies in the state of Florida and the fastest growing independent truck lessor in the U.S.  In 2018, Fleet Advantage was ranked the 9th Top Private Independent from Monitor Daily; and in 2015 and 2013, the company was named to Inc. magazines’ 500|5000 list of fastest growing companies in the nation.  In 2011, CEO John Flynn received the Ernst & Young Entrepreneur of the Year® 2011 Florida - Emerging Category award.