Monthly Archives: November 2016

Crown Capital Partners Completes $60.0 Million Term Loan with Medicure Inc.

CALGARY, November 18, 2016 – Crown Capital Partners Inc. (“Crown”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced the closing of a $60.0 million term loan (the “Agreement”) with Medicure Inc. (“Medicure”) (TSXV: MPH), a specialty pharmaceutical company focused on the development and commercialization of cardiac therapeutics for the U.S. hospital market.

Headquartered in Winnipeg, Medicure’s lead product is Aggrastat®, which is marketed in the U.S. for non-ST elevation acute coronary syndrome. Medicure reports that sales of Aggrastat have been growing rapidly over the past several years, and the product now accounts for approximately 40% of the patient share of the market for this class of drugs in the U.S., compared with only 3% share in 2012. Medicure’s revenue and EBITDA has grown significantly as the company’s market share has increased.

Medicure also owns a minority interest in Apicore US, a fast-growing Active Pharmaceutical Ingredient manufacturing service provider and developer of generic products for pharmaceutical companies. Medicure will use the proceeds of the term loan to purchase an additional 60% of the outstanding shares of Apicore.

“Medicure is a well-managed, profitable and growing company that has demonstrated consistent revenue and EBITDA growth over the past several years,” said Chris Johnson, Crown’s President & CEO. “Building off this strong base business, they are acquiring a controlling interest in a highly attractive business, and we’re pleased to support them in executing this major transaction.”

The Agreement provides for a $60.0 million term loan to Medicure, of which Crown Capital Fund IV, LP (“Crown IV LP”), an investment fund managed by Crown in which Crown holds a 40% interest, will advance $30 million. On closing of the Agreement, Crown syndicated $30.0 million of the loan to Ontario Pension Board (“OPB”), a limited partner in Crown’s funds.

Mr. Johnson added: “We are delighted with OPB’s participation in this transaction. They have been a supportive limited partner for many years and their co-investment in Medicure demonstrates the strength of our limited partner relationships.”

The term loan bears a fixed interest rate of 9.5% per annum, compounded and payable monthly, and matures in 48 months. In addition, the Agreement includes warrants to acquire 450,000 common shares of Medicure for each of Crown and OPB, exercisable at $6.50 per share.

“Medicure has a long-standing relationship with Apicore and we are excited to increase our ownership,” stated Dr. Albert Friesen, President, CEO and Chairman of Medicure. “The Crown team has been a valuable contributor in the acquisition of Apicore and we look forward to working with them as we continue to grow our business.”

ABOUT CROWN

Crown (TSX: CRN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds. Crown also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term financing solutions to a diversified group of private and public mid-market companies in the form of loans, royalties and other structures with minimal or no ownership dilution.

ABOUT ONTARIO PENSION BOARD

Ontario Pension Board administers Ontario’s Public Service Pension Plan, a defined benefit pension plan serving more than 42,000 members and their employers as well as more than 42,000 retired members and deferred members. With more than $23 billion in assets, it is one of Canada’s largest pension plans. It’s also one of Canada’s oldest pension plans, successfully delivering the pension promise since the early 1920s. To learn more about OPB, visit www.opb.ca.

FORWARD-LOOKING STATEMENTS

This news release contains certain “forward looking statements” and certain “forward looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding the future growth and performance of Medicure and Apicore. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Crown’s periodic filings with Canadian securities regulators. See Crown’s most recent Annual Information Form for a detailed discussion of the risk factors affecting Crown. Crown undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

 

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Crown Capital Partners Completes $60.0 Million Term Loan with Medicure Inc.2020-05-12T18:06:44+00:00

Crown Capital Partners Announces Q3 2016 Financial Results

CALGARY, November 9, 2016 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced its financial results for the three and nine months ended September 30, 2016. Crown’s complete financial statements and management’s discussion and analysis for the third quarter of 2016 are available on SEDAR at www.sedar.com.

Q3 2016 Financial & Operating Highlights

  • Revenue of $2.9 million, including interest revenue of $3.0 million, fees and other income of $0.2 million, and net change in unrealized gains in fair value of investments of ($0.3) million.
  • Adjusted EBIT1 of $1.5 million.
  • Total comprehensive income, net of non-controlling interest, of $0.8 million, or $0.09 per common share (basic).
  • Total equity per common share (basic) of $10.65 at September 30, 2016.
  • Total assets of $151.6 million at September 30, 2016, up from $130.1 million at December 31, 2015.
  • Cash and cash equivalents of $46.5 million, compared with $43.6 million at December 31, 2015.
  • On September 9, 2016, paid a third quarterly dividend of $0.11 per common share.
  • On July 15, 2016, completed a $25 million closing for Crown Capital Fund IV LP (“CCF IV LP”), bringing the current total capital committed to the Fund to $125 million.
  • On November 8, 2016, Crown announced the signing in escrow by CCF IV LP of a $15.0 million term loan (the “Agreement”) with Touchstone Exploration Inc., a Calgary-based publicly-traded company engaged in acquiring interests in petroleum and natural gas rights, and the exploration, development, production and sale of petroleum and natural gas, with its primary focus in the Republic of Trinidad.

“Our current investments continue to perform well overall, which was validated by the new limited partners we added to CCF IV LP during the quarter,” said Chris Johnson, President and CEO of Crown. “Our financial results for the quarter reflect the higher-than-planned cash balance carried during the period. We completed one special situations transaction subsequent to quarter end and expect to deploy additional capital before year end. We continue to see strong demand for our financing solutions from successful companies in the mid-market. In addition to building the investment portfolio, we expect to finalize a credit facility in the near term, providing new leverage to drive higher returns on equity.”

 

  1. Adjusted EBIT is not a measure of financial performance (nor does it have a standardized meaning) under IFRS. In evaluating this measure, investors should consider that the methodology applied in calculating this measure may differ among companies and analysts. Adjusted EBIT is calculated by Crown as earnings before non-cash share-based compensation, finance costs and income taxes less net income and comprehensive income attributable to non-controlling interests. The Corporation has provided a reconciliation of earnings before income taxes to Adjusted EBIT in this news release. The Corporation believes Adjusted EBIT is a useful supplemental measure that may assist investors in assessing the financial performance and the cash anticipated to be generated by Crown’s business. Adjusted EBIT should not be considered as the sole measure of Crown’s performance and should not be considered in isolation from, or as a substitute for, analysis of the Corporation’s financial statements.

Conference Call & Webcast

Crown will host a conference call to discuss its Q3 2016 financial results at 8:30 a.m. EDT on November 9, 2016. The call will be hosted by Chris Johnson, President & CEO, and Lyle Bolen, CFO. To participate in the call, dial 647-427-7450 or 1-888-231-8191 using the conference ID 3945204. The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or at http://bit.ly/2eqoAWi. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected.

ABOUT CROWN

Crown (TSX: CRN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds. Crown also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term financing solutions to a diversified group of private and public mid-market companies in the form of loans, royalties and other structures with minimal or no ownership dilution.

FORWARD-LOOKING STATEMENTS

This news release contains certain “forward looking statements” and certain “forward looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding the alternative financial market and the general economy, transaction pipeline, Crown’s business plans and strategy, including anticipated capital deployments and the timing thereof, and Crown’s future cash flow and shareholder value. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Crown’s periodic filings with Canadian securities regulators. See Crown’s most recent annual information form for a detailed discussion of the risk factors affecting Crown. In addition, Crown’s dividend policy will be reviewed from time to time in the context of the Corporation’s earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the board of directors of the Corporation. Crown undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

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Crown Capital Partners Announces Q3 2016 Financial Results2020-05-12T18:06:44+00:00

Crown Capital Signs $15.0 Million Term Loan with Touchstone Exploration

CALGARY, November 8, 2016 – Crown Capital Partners Inc. (“Crown”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced the signing in escrow of a $15.0 million term loan (the “Agreement”) with Touchstone Exploration Inc. (“Touchstone”) (TSX: TXP), a Calgary-based company engaged in acquiring interests in petroleum and natural gas rights, and the exploration, development, production and sale of petroleum and natural gas, with its primary focus in the Republic of Trinidad and Tobago.

Touchstone is one of the largest independent onshore oil producers in Trinidad, with assets in several large, high-quality reservoirs that have significant total petroleum initially-in-place and an extensive inventory of low-risk development opportunities. In total, the company currently has interests in over 84,000 gross acres of exploration and development rights. Touchstone’s assets include 21 onshore blocks, 11 of which are currently producing. Total petroleum initially-in-place is estimated to be 1 billion barrels, based on the company’s five key producing blocks.  Touchstone also has rights to 208 potential drilling locations representing an estimated 10 years of drilling inventory. For the first six months of 2016, Touchstone’s average production was 1,342 barrels of crude oil per day.

“We are pleased to support Touchstone in its strategy of executing a low-risk, repeatable development program in proven regions of Trinidad,” said Chris Johnson, Crown’s President & CEO. “Touchstone is a low-cost producer with minimal production risk and large oil reserves in place. During this period of low oil prices, the company has successfully focused on operational initiatives to ensure sustainability and future profitability through all commodity price cycles. Looking ahead, given its low production costs, quality of assets and proven model, Touchstone is well positioned to benefit from improvements in the pricing environment.”

Paul Baay, President and Chief Executive Officer of Touchstone, said: “The Crown Capital financing provides us the financial flexibility to focus on the development of our onshore Trinidad assets and to immediately commence a revitalized capital program. It will also enable us to evaluate a number of acquisition opportunities.”

The Agreement provides for a $15.0 million term loan to Touchstone by Crown Capital Fund IV, LP (“Crown IV LP”), an investment fund managed by Crown in which Crown holds a 40% interest. The term loan bears a fixed interest rate of 8.0% per annum, compounded and payable quarterly, and matures in 60 months. In addition, the Agreement calls for Crown IV LP to receive a 1% royalty on Touchstone’s petroleum revenue for 60 months, which will be calculated and paid quarterly. The Agreement will be released from escrow and the loan will be advanced to Touchstone upon satisfaction of conditions precedent, including security registrations in Trinidad in favour of Crown IV LP.

The term loan will replace Touchstone’s existing credit facility. The proceeds will be used to cash collateralize Touchstone’s US$6 million letter of credit relating to its East Brighton property and for general corporate purposes.

ABOUT CROWN

Crown (TSX: CRN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds. Crown also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term financing solutions to a diversified group of private and public mid-market companies in the form of loans, royalties and other structures with minimal or no ownership dilution.

FORWARD-LOOKING STATEMENTS

This news release contains certain “forward looking statements” and certain “forward looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding the future growth and performance of Touchstone. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Crown’s periodic filings with Canadian securities regulators. See Crown’s most recent Annual Information Form for a detailed discussion of the risk factors affecting Crown. Crown undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

 

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Crown Capital Signs $15.0 Million Term Loan with Touchstone Exploration2020-05-12T18:06:44+00:00

Crown Capital Declares Quarterly Dividend

CALGARY, November 8, 2016 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced that its Board of Directors has declared a dividend of $0.11 per common share, payable on December 2, 2016 to all shareholders of record as of the close of business on November 17, 2016.

This dividend is designated by the Company to be an “eligible dividend” pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial or territorial legislation pertaining to eligible dividends. Shareholders with questions regarding the tax treatment of dividends should consult with their own tax advisors.

ABOUT CROWN

Crown (TSX: CRN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds. Crown also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term financing solutions to a diversified group of private and public mid-market companies in the form of loans, royalties and other structures with minimal or no ownership dilution.

FORWARD-LOOKING STATEMENTS

This news release contains certain “forward looking statements” and certain “forward looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding the alternative financial market and the general economy, transaction pipeline, Crown’s business plans and strategy, including anticipated capital deployments, and Crown’s future cash flow and shareholder value. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Crown’s periodic filings with Canadian securities regulators. See the AIF for a detailed discussion of the risk factors affecting Crown. In addition, Crown’s dividend policy will be reviewed from time to time in the context of the Corporation’s earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the board of directors of the Corporation. Crown undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

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Crown Capital Declares Quarterly Dividend2020-05-12T18:06:44+00:00