Alaris Equity Partners Announces the Redemption of Brown & Settle

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CALGARY, Alberta, April 16, 2024 (GLOBE NEWSWIRE) -- Alaris Equity Partners Income Trust (the "Trust" and, collectively with its subsidiaries, "Alaris") (TSX: AD.UN) is pleased to announce the redemption of Alaris' interest in Brown & Settle Investments, LLC ("B&S"), which closed on April 12, 2024, and resulted in gross proceeds to Alaris of US$71.5 million (CAD$97.8 million) (the "B&S Proceeds"). Alaris' total return on our B&S investment is US$30.8 million (CAD $42.2 million) delivering an unlevered IRR⁽³⁾ of 15% and a MOIC⁽⁴⁾ of 1.5x.

After today’s announcement, Alaris will have approximately CA$166.0 million drawn on its senior credit facility and CA$334 million available for investment purposes based on our credit agreement that provides for up to $500 million of indebtedness. Alaris' total senior debt-to-EBITDA⁽²⁾ on a proforma basis is approximately 1.14x. Alaris estimates its Run Rate Payout Ratio⁽¹⁾ to be between 65% and 70% following the B&S redemption.

"Today’s exit from B&S crystalizes another successful investment for Alaris. With future deployments into new and existing partners on the horizon as well as the expiration of our convertible debentures in June, these proceeds allow for us to keep a very healthy balance sheet without needing to go to the market. I’d like to thank the management of B&S, who went through some early challenges during our partnership but worked tirelessly to create an excellent outcome", said Steve King, Chief Executive Officer, Alaris.

ABOUT ALARIS:

Alaris, through its subsidiaries, provides alternative financing to private companies ("partners") in exchange for distributions, dividends and interest (collectively, "distributions") with the principal objective of generating stable and predictable cash flows for dividend payments to its unitholders. Distributions from the partners are adjusted each year based on the percentage change of a "top line" financial performance measure such as gross margin and same-store sales and rank in priority to the owners' common equity position.