Mr. David Levine reports

DRI HEALTHCARE TRUST ANNOUNCES REFINANCING OF PREFERRED SECURITIES

DRI Healthcare Trust has refinanced its $114.76-million (U.S.) aggregate principal amount of Series A and Series B preferred securities and 6,369,180 in-the-money warrants.

As a result of the refinancing, holders of the existing securities will receive $135,202,000 (U.S.) of new Series C preferred securities and 1,749,996 new warrants having an exercise price representing a 20-per-cent premium to the five-day volume-weighted average price of the trust's units. The existing securities will be cancelled upon completion of the refinancing, with holders entitled to receive accrued and unpaid interest on the Series A and Series B preferred securities up to and excluding such date.

The reduction in the number of warrants outstanding will reduce the trust's potential unit dilution upon exercise by 4.6 million units, or 8.2 per cent of current units outstanding.

Financial terms

The Series C preferred securities will be unsecured, subordinated debt securities of the trust and have a principal amount of $135,202,000 (U.S.). The Series C preferred securities will have substantially the same terms as the Series A preferred securities, but will mature in April, 2074. The Series C preferred securities will initially pay cash interest at a rate of 7.50 per cent per annum on the principal amount of the Series C preferred securities outstanding, payable semi-annually on April 30 and Oct. 31 of each year. The Series C preferred securities will not be redeemable by the trust prior to April 30, 2029, except in the event of a change of control of the trust.

The interest rate on the Series C preferred securities will increase to 10 per cent per annum if any of the Series C preferred securities are outstanding on April 30, 2029, and will be subject to an annual increase of 1.5 per cent per annum if outstanding on each one-year anniversary of such date, up to a specified cap.

The new warrants will entitle the holders thereof to acquire one trust unit for an exercise price of $15.00 (U.S.) at any time until the expiry of the warrants five years from date of issue. The warrant exercise price represents a 20-per-cent premium to the volume-weighted average price of the trust's units for the five trading days ending April 12, 2024.

The refinancing of the securities is conditional upon consent of the holders of the existing securities and other customary conditions, including the approval of the Toronto Stock Exchange for the issuance of the new warrants.

The refinancing is expected to be completed in April, 2024.

About DRI Healthcare Trust

DRI Healthcare Trust is managed by DRI Capital Inc., the pioneer in global pharmaceutical royalty monetization with a more than 35-year history of accelerating innovation by providing capital to inventors, academic institutions and biopharma companies. Since its founding in 1989, DRI Capital has deployed more than $3.0-billion (U.S.), acquiring more than 70 royalties on 45-plus drugs, including Eylea, Keytruda, Orserdu, Spinraza, Stelara, Vonjo, Zejula and Zytiga. DRI Healthcare Trust's units are listed and traded on the Toronto Stock Exchange in Canadian dollars under the symbol DHT.UN and in U.S. dollars under the symbol DHT.U.