Mr. Steve King reports

ALARIS EQUITY PARTNERS ANNOUNCES THE REDEMPTION OF BROWN & SETTLE

Alaris Equity Partners Income Trust has redeemed Alaris's interest in Brown & Settle Investments LLC (B&S), which closed on April 12, 2024, and resulted in gross proceeds to Alaris of $71.5-million (U.S.) ($97.8-million). Alaris's total return on its B&S investment is $30.8-million (U.S.) ($42.2-million) delivering an unlevered IRR (internal rate of return) of 15 per cent and an MOIC (multiple on invested capital) of 1.5 times.

After today's announcement, Alaris will have approximately $166.0-million drawn on its senior credit facility and $334-million available for investment purposes based on our credit agreement that provides for up to $500-million of indebtedness. Alaris's total senior debt to EBITDA (earnings before interest, taxes, depreciation and amortization) on a pro forma basis is approximately 1.14 times. Alaris estimates its run rate payout ratio to be between 65 per cent and 70 per cent 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 Equity Partners Income Trust

Alaris, through its subsidiaries, provides alternative financing to private companies in exchange for distributions, dividends and interest 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.

We seek Safe Harbor.