Alaris Royalty to use new issue proceeds to pay down credit facility

By Angela McDaniels

Tacoma, Wash., June 11 – Alaris Royalty Corp. said it plans to repay existing debt under its senior credit facility.

Once the paydown is completed, Alaris will have about C$120 million drawn on its credit facility, C$180 million of undrawn funds on the credit facility and an additional C$50 million on the accordion feature, according to a company news release.

The company will fund the paydown with the proceeds of C$100 million of 5.5% convertible subordinated debentures due June 30, 2024.

The company said the convertibles are not included for the purposes of calculating its funded debt. As a result, its ratio of senior debt to trailing-12-months EBITDA will be about 1.2x following closing of the offering.

Alaris is based in Calgary, Alta., and provides alternative financing for a group of private businesses in exchange for royalties or distributions from the private company partners.

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