- Alaris Equity Partners Income Trust (AD.UN) has announced a US$546 million investment with Brookfield in Body Contour Centre
- The company executed this transaction through its wholly-owned subsidiary, Alaris Equity Partners USA, Inc
- Included in the transaction is Alaris exchanging US$145 million of its existing preferred units in BCC for newly issued convertible preferred units in the company
- Alaris Equity Partners Income Trust is an open-ended trust.
- Alaris Equity Partners Income Trust was up 1.964 per cent, trading at C$18.69 per share at 1:18 PM ET
Alaris Equity Partners Income Trust (AD.UN) has announced a US$546 million investment with Brookfield in Body Contour Centre.
The company executed this transaction through its wholly-owned subsidiary, Alaris Equity Partners USA, Inc.
The transaction involved Body Contour Centres LLC, dba Sono Bello, and Brookfield Special Investments, a fund managed by Brookfield through its Special Investments program.
Included in the transaction is Alaris exchanging US$145 million of its existing preferred units in BCC for newly issued convertible preferred units in the company; Brookfield investing approximately US$400 million in exchange for newly created convertible preferred units in the company; and Alaris receiving cash proceeds of US$20.3 million for the redemption of its remaining existing preferred units.
The convertible preferred units are entitled to receive a preferred distribution of 8.5 per cent per annum, payable quarterly and participate in the as-converted value of BCC.
Alaris will also receive (i) an over-allocation of profits relative to the other convertible preferred units not held by Alaris if certain return-based performance thresholds are met and (ii) an annual transaction fee in connection with the transaction.
Alaris’ initial cost on the existing preferred units is US$156.3 million. Therefore, Alaris realized a premium of US$9.3 million on the redemption of its existing preferred units.
The convertible preferred units are convertible at the option of the holder, for a period of up to five years, into common equity of BCC at a predetermined valuation.
Alaris Equity Partners Income Trust is an open-ended trust.
BCC is a national leader in private plastic surgery practice throughout the United States, with over 70 locations.
Alaris Equity Partners Income Trust (AD.UN) was up 1.964 per cent, trading at C$18.69 per share at 1:18 PM ET.
