– Refinancing extends maturity profile of existing debt by up to two years –
TORONTO, March 2, 2026 /CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) ("DRI Healthcare") is pleased to announce that it has entered into subscription agreements with EdgePoint Wealth Management Inc., and Alberta Investment Management Corporation (AIMCo), the holders of its outstanding 7.50% Series C preferred securities (the "PreferredSecurities"), pursuant to which DRI Healthcare has agreed to issue C$108,723,000 aggregate principal amount of convertible unsecured subordinated debentures (the "Debentures") to the holders. The purchase price for the Debentures will be exclusively satisfied by the holders exchanging their existing Preferred Securities with a currency adjusted principal amount equal to the principal amount of Debentures being subscribed for.
No cash consideration will be paid by the holders of the Preferred Securities.
"The refinancing being announced today meaningfully extends the maturity profile of our existing debt and lowers interest rate costs, thereby enhancing our financial flexibility to support the execution of our growth strategy" said Ali Hedayat, Chief Executive Officer of DRI Healthcare.
Upon closing of the transaction, an aggregate principal amount of US$35,580,000 of the Preferred Securities will remain issued and outstanding.
Financial Terms
The Debentures will mature on February 28, 2031, and will bear interest at a rate of 5.75% per annum, payable semi-annually in arrears. The Debentures will be convertible at the option of the holder into units of DRI Healthcare (the "Units") at a conversion price of C$21.99 per Unit (the "Conversion Price"), representing a premium of 30% to the reference market price of the Units.
The Debentures will not be redeemable on or before February 28, 2029. After February 28, 2029 and prior to February 28, 2030, the Debentures may be redeemed in whole or in part from time to time at DRI Healthcare's option, provided that the volume weighted average trading price of the Units on the Toronto Stock Exchange (the "TSX") during the 20 consecutive trading days ending on the fifth trading day preceding the date on which the notice of the redemption is given is not less than 125% of the Conversion Price. On or after February 28, 2030, and prior to the maturity date, DRI Healthcare may, at its option, redeem the Debentures, in whole or in part, from time to time at par plus accrued and unpaid interest.
The Debentures will be issued on a private placement basis and will be subject to a hold period of four months and one day from the date of issuance in accordance with applicable Canadian securities laws.
Closing of the transaction is expected to occur on or about March 19, 2026, and is subject to approval of the TSX and other customary closing conditions.
Scotia Capital Inc. acted as exclusive placement agent of the Debentures for the Trust.
About DRI Healthcare
DRI Healthcare is a pioneer in global pharmaceutical royalty monetization. Since our founding in 1989, we have deployed more than $3.0 billion, acquiring more than 75 royalties on 50-plus drugs, including Ekterly, Eylea, Keytruda, Orserdu, Remicade, Spinraza, Stelara, Vonjo and Zytiga. The Units are listed and trade on the TSX in Canadian dollars under the symbol "DHT.UN" and in U.S. dollars under the symbol "DHT.U". To learn more, visit drihealthcare.com or follow us on LinkedIn.
Caution concerning forward-looking statements
This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information can generally be identified by the use of words such as "expect", "continue", "anticipate", "intend", "aim", "plan", "believe", "budget", "estimate", "forecast", "foresee", "close to", "target" or negative versions thereof and similar expressions. Some of the specific forward-looking information in this news release may include, among other things, statements with respect to the Debentures, closing of the transaction and the receipt of all approvals of the TSX in connection therewith. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond DRI Healthcare's control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties are disclosed in DRI Healthcare's most recent annual information form and under "Risk Factors" in DRI Healthcare's Management's Discussion and Analysis. You should not put undue reliance on forward-looking statements. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do occur, the actual results, performance or achievements of DRI Healthcare could differ materially from the results expressed in, or implied by, any forward-looking statements. All forward-looking information in this news release speaks as of the date of this news release. DRI Healthcare does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in DRI Healthcare's filings with securities regulators, including its latest annual information form and Management's Discussion and Analysis. These filings are also available at DRI Healthcare's website at drihealthcare.com/investors.
For further information, please contact:
Bill Zhang
Head of Investor Relations
ir@drihealthcare.com
SOURCE DRI Healthcare Trust
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