Alaris Royalty Corporation has announced its commitment of an additional C$9 million to Killick LP, managed by Atlantic Canadian private equity firm Killick Capital. To date, Alaris has contributed a total of C$36.5 million to the partnership, the proceeds of which will be invested in businesses of interest to Killick, which include global aerospace companies. Killick owns Dallas, Texas-based Killick Aerospace, which has acquired several major aviation and aerospace companies.
Alaris Royalty Corp Announces Additional $9 Million Contribution to Existing Partner
CALGARY, ALBERTA (Dec. 27, 2012)
Alaris Royalty Corp. (“Alaris” or the “Corporation”) (TSX:AD) is pleased to announce that it has contributed an additional $9,000,000 (the “Contribution”) to Killick Limited Partnership (“Killick”). In exchange for the Contribution, Alaris will receive an additional $1,333,333 of annual preferred distributions (the “Distribution”) for the first full year after the Contribution. Alaris has now contributed an aggregate of $36,500,000 to Killick and will now receive a total of $5,771,000 of preferred distributions from Killick on an annualized basis. The Contribution was funded with funds drawn on the Corporation’s credit facility. Killick will use the proceeds from Alaris to partially fund an acquisition in the industry it operates in.
Killick Limited Partnership is a world class leader in the global aircraft maintenance, repair and overhaul (“MRO”) industry. Through its three wholly owned subsidiaries, (Prime Turbines; www.primeturbines.com, CT Aerospace; www.ctaerospace.com, and Kansas Aviation; www.kansasaviation.com) Killick offers MRO services to owners of small aircraft operating turboprop engines, as well as inventory management services to MRO shops which service commercial aircraft jet engines. Killick LP also does business as Killick Aerospace. Killick Aerospace is a global leader in the commercial aviation industry, Killick Aerospace specializes in large jet aircraft engines, engine parts and airframe components. Killick Aerospace also provides innovative asset management and advisory services to its clients. Based in Carrollton, Texas, USA, Killick LP has operations in Hyannis, MS; Pittsburgh, PA; Independence, Kansas; Europe; Dublin and Singapore. The Partnership is a Canadian partnership with all amounts for the contribution and preferred distribution denominated in Canadian dollars.
The Corporation provides alternative financing to a diversified group of private businesses (“Private Company Partners”) in exchange for royalties or distributions from the Private Company Partners, with the principal objective of generating stable and predictable cash flows for dividend payments to its shareholders. Royalties or distributions to Alaris from the Private Company Partners are structured as a percentage of a “top line” financial performance measure such as gross margin, same clinic sales, gross revenues and same-store sales and rank in priority to the owners’ common equity position.
Alaris Royalty Corp.
Manager of Investor Relations, Analyst
Photo courtesy of Shutterstock.
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