New Issue: Alaris prices C$100 million five-year convertibles to yield 5.5%

By Abigail W. Adams

Portland, Me., June 11 – Alaris Royalty Corp. closed its offering of C$100 million five-year convertible debentures on Tuesday, which priced at par to yield 5.5% with an initial conversion price of C$24.25, according to a company news release.

CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets, Scotiabank, Acumen Capital Finance Partners Ltd., Desjardins Securities Inc., GMP Securities LP and Cormark Securities Inc. were bookrunners for the offering.

The debentures are non-callable prior to June 30, 2022, are callable until June 30, 2023 subject to a 125% hurdle and are then freely callable.

Proceeds will be used to repay debt under its senior credit facility reducing the amount drawn to C$120 million.

Alaris Royalty is a Calgary, Alta.-based alternative financing company.

Issuer:	Alaris Royalty Corp.
Securities:	Convertible debentures
Amount:	C$100 million
Maturity:	June 30, 2024
Bookrunners:	CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets, Scotiabank, Acumen Capital Finance Partners Ltd., Desjardins Securities Inc., GMP Securities LP and Cormark Securities Inc.
Coupon:	5.5%
Price:	Par
Yield:	5.5%
Conversion price:	C$24.25
Conversion rate:	41.2371
Call options:	Non-callable until June 30, 2022, callable until June 30, 2023 subject to a 125% hurdle and are then freely callable
Settlement date:	June 11
Distribution:	Off shelf
Stock symbol:	TSX: AD
Stock price:	C$18.60 at market close June 10
Market capitalization:	C$677.01 million

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