Alaris Equity Partners has made a $65 million follow-on investment in Sono Bello, a Kirkland, Washington-based plastic surgery practice. The deal’s proceeds were used by the company to acquire a Sono Bello brand licensee. Based in Calgary, Alaris is a provider of alternative equity to private businesses.
CALGARY, Alberta, March 11, 2022 (GLOBE NEWSWIRE) — Alaris Equity Partners Income Trust (“Alaris” or the “Trust”) (TSX: AD.UN) is pleased to announce a follow-on investment of US$65.0 million (the “BCC Contribution”) into Body Contour Centers LLC (“BCC”), doing business as Sono Bello. Following the BCC Contribution, Alaris has invested US$156.0 million and is collecting US$21.2 million in annualized distributions from BCC.
The US$65.0 million BCC Contribution was made in exchange for preferred equity carrying an initial annualized distribution of US$8.5 million, with the first reset to occur on January 1, 2023. Proceeds from the BCC Contribution were used by BCC to acquire the only licensee of the Sono Bello brand with 12 locations throughout the eastern United States and Texas.
Subsequent to the BCC Contribution and based on proforma capital structure, the Earnings Coverage Ratio(1) remains in excess of 2.0x. The Run Rate Payout Ratio(2) remains in the range of 60% to 65%.
Alaris, through its subsidiaries, provides alternative financing to private companies (“Partners”) in exchange for distributions, dividends and interest (“Distributions”) 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.