Alaris Equity Partners’ C$75 Million Bought Deal Financing

Torys LLP represented the syndicate of underwriters.On February 9, 2021, Alaris Equity Partners Income Trust announced that it entered into an agreement with a syndicate of underwriters to purchase, on a bought deal basis, 4,687,500 trust units at a price of C$16.00 per unit for aggregate gross proceeds of C$75 million.

The size of the financing was increased on February 10, 2021 to 5,312,500 trust units for gross proceeds of C$85 million.

On March 9, 2021, it was announced that the underwriters concluded the partial exercise of their over-allotment option to purchase an additional 596,875 trust units at the offering price for additional gross proceeds of C$9,550,000. With the partial exercise of the over-allotment option, Alaris issued an aggregate of 5,909,375 trust units pursuant to the offering for aggregate gross proceeds of C$94,550,000.

The offering is being co-led by Acumen Capital Finance Partners Limited, Cormark Securities Inc., CIBC Capital Markets, National Bank Financial Inc. and RBC Capital Markets and including Desjardins Securities Inc. and Scotia Capital Inc. The Trust has granted the underwriters an option, exercisable for up to 30 days from of the closing of the offering, to purchase up to an additional 15% of the trust units issued under the offering at the same price as the offering to cover over-allotments and for market stabilization purposes. The aggregate gross proceeds of the offering and over-allotment option (if exercised in full) would be C$97.8 million.

The offering is expected to close on or about March 3, 2021, subject to customary closing conditions.

The Trust will use the net proceeds of the offering (and over-allotment option, if any) to reduce debt outstanding under its C$373 million credit facility.

Alaris Equity Partners Income Trust, through its subsidiaries, indirectly provides alternative financing to private companies in exchange for distributions with the principal objective of generating stable and predictable cash flows for payment of distributions to unitholders of the Trust.

The Torys team included Scott Cochlan (Picture), Jennifer Baugh and Michael Despres (corporate/securities).

Involved fees earner: Jennifer Baugh – Torys LLP; Scott Cochlan – Torys LLP; Michael Despres – Torys LLP;

Law Firms: Torys LLP;

Clients: Acumen Capital Finance Partners Limited; CIBC Capital Markets; Cormark Securities Inc.; National Bank Financial Inc.; RBC Capital Markets;

Martina Bellini

Author: Martina Bellini