Alaris Royalty Corp. Contributes US$46 Million to a New Partner and Increases Dividend - Alaris Equity Partners
Summary
Given the growth profile of GWM, the 8% collar and an 8.57x predetermined exit multiple, Alaris is expecting returns equal to or greater than prior deals that had higher first year pre-tax yields. For Alaris, the company has not only shown excellent growth, they are a true cash conversion business with low levels of debt or required capital expenditures. Combine that with a high free cash flow cushion and we are confident that weve added another very strong partner, said Steve King, President and Chief Executive Officer, Alaris.Based on Alaris review of GWMs internal pro forma results for the most recent trailing twelve month period in 2018, management of Alaris believes that GWM would have an earnings coverage ratio in a range of 1.5x to 2.0x, after giving effect to the GWM Contribution, other changes to GWMs capital structure and the GWM Distribution payable to Alaris.The Board of Directors of the Corporation has declared a dividend of $0.1375 per common share for the month of November 2018, representing $1.65 per share on an annualized basis. Additional risks that may cause actual results to vary from those indicated are discussed under the heading Risk Factors and Forward Looking Statements in the Corporations Management Discussion and Analysis for the year ended December 31, 2017, which is filed under the Corporations profile at www.sedar.com and on its website at www.alarisroyalty.com.Accordingly, readers are cautioned not to place undue reliance on any forward-looking information contained in this news release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. The forward-looking statements included in this news release are made as of the date of this news release and Alaris does not undertake or assume any obligation to update or revise such statements to reflect new events or circumstances except as expressly required by applicable securities legislation.Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.For further information please contact: