DRI Healthcare announces US$95M private placement of preferred securities

DRI Healthcare Trust (“DRI”) announced on February 8, 2023 that it completed a private placement of preferred securities (for gross proceeds of US$95 million) to an investor group that includes funds managed by EdgePoint Wealth Management Inc., Alberta Investment Management Corporation and FAX Capital Corp., or their affiliates or related parties.

The private placement involved the sale of US$95,000,000 principal amount of preferred securities, Series A and US$19,760,000 principal amount of preferred securities, Series B, which are unsecured, subordinated debt securities of DRI. A total of 6,369,180 warrants to purchase units of DRI were also issued pursuant to the private placement. The preferred securities initially pay cash interest at a rate of 7.04% per annum on the principal amount of the preferred securities, payable semi-annually on June 30 and December 31 of each year.

EdgePoint Wealth Management Inc. is a Toronto, Ontario based company  which operates as an investment management firm.

DRI Healthcare Trust, based in Toronto, Ontario, is an investment management company focused on the global pharmaceutical royalty monetization.

McCarthy Tétrault advised EdgePoint Wealth Management Inc. with a team led by Robert O. Hansen (Business) and Patrick McCay (Tax).