09:12 AM EDT, 04/15/2024 (MT Newswires) -- DRI Healthcare Trust (DHT-U.TO) said Monday that it refinanced about US$114.8 million ($157.8 million) of Series A and Series B preferred securities and about 6.4 million in-the-money warrants.

As part of the refinancing, holders of the existing securities will receive about US$135.2 million of new Series C preferred securities and about 1.7 million new warrants.

The existing securities will be canceled upon completion of the refinancing with holders entitled to receive accrued and unpaid interest.

The reduction in the number of warrants outstanding will reduce DRI's potential unit dilution upon exercise by 4.6 million units, or 8.2% of current units outstanding.

The Series C preferred securities will have similar terms as the Series A preferred securities but will mature in April 2074. The Series C preferred securities will initially pay 7.5% interest, payable semi-annually on April 30 and Oct. 31. The securities will not be redeemable by DRI before April 30, 2029, except in the event of a change of control of the company.

The interest rate on the Series C preferred securities will increase to 10% per year if any of the Series C preferred securities are outstanding on April 30, 2029. The rate will increase yearly by 1.5 percentage points, up to a specified cap, if the securities are outstanding on each anniversary.

The new warrants let the holders buy one DRI unit for an exercise price of US$15 at any time until the expiry of the warrants five years from the date of issue.

The refinancing is expected to be completed in April.