Monthly Archives: February 2017

Crown Capital Announces Repayment of Loan by Corrosion Service Company Limited

CALGARY, February 28, 2017 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced the repayment by Corrosion Service Company Limited (“Corrosion”) of a special situations loan managed by Crown.

Established in 1950, Corrosion is the second-largest corrosion engineering firm in Canada focused mainly on corrosion mitigation for the midstream energy industry. Crown arranged a $4.0 million, five-year loan to Corrosion in April 2015 to support a management buyout. Corrosion has prepaid this loan in full, including principal, interest and fees.

“Corrosion has been an ideal client and performed well over the term of the relationship,” said Chris Johnson, President and CEO of Crown. “We were proud to be part of this chapter for Corrosion and wish them continued success.”

“Crown was an excellent capital provider for Corrosion,” said Dean Rookes, President of Corrosion. “They really understood our company and its specific requirements and were supportive partners in our business, allowing us to execute on our plans without diluting capital.”

The Corrosion loan was held by special situations funds managed by Crown in which Crown holds an ownership interest of approximately 54%. Crown has no further participation in Corrosion and the realized IRR on the loan was approximately 25%.

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 Announces Repayment of Loan by Corrosion Service Company Limited2020-05-12T18:05:28+00:00

Crown Capital Partners Announces $15.0 Million Term Loan with Solo Liquor

CALGARY, February 27, 2017 – Crown Capital Partners Inc. (“Crown” or “the Corporation”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced the closing of a $15.0 million special situations term loan (the “Agreement”) with Solo Liquor Holdings Ltd. (“Solo”), the second largest liquor retailer in Alberta and largest private liquor retailer in the province.

Headquartered in Calgary, Solo currently operates 41 retail liquor stores in high-traffic locations in Alberta, including 19 stores in Calgary, 13 in Edmonton and the remaining 9 in other communities across Alberta. Founded in 1996, the company is 100% owned by senior management. Solo will use Crown’s capital to expand its store network over the next several years.

“Solo has built an attractive long-term growth profile using a simple strategy: open stores in high-traffic residential areas, offer a wide range of products, operate with extended hours and maintain everyday low prices,” said Chris Johnson, Crown’s President & CEO. “Solo has a low-cost, scalable and repeatable model, and we believe they can generate significant value in the coming years through a low-risk store expansion plan. We are pleased to partner with them as they embark on this next phase of growth.”

“We were attracted to Crown because they offered a non-dilutive financing alternative and have a history supporting growth businesses like ours,” said Pali Bedi, Solo’s CEO. “We look forward to working with them as we build out our network.”

The Agreement provides for a $15 million term loan to Solo by Crown Capital Fund IV, LP, an investment fund managed by Crown and in which Crown holds a 35% interest. The term loan bears a fixed interest rate of 12% per annum, matures in 36 months, and includes a bonus feature based on the growth in Solo’s enterprise value.

ATB M&A Advisory Services acted as exclusive financial advisor to Solo.

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 Solo. 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 Announces $15.0 Million Term Loan with Solo Liquor2020-05-12T18:05:29+00:00

Crown Capital Increases Quarterly Dividend to $0.12 Per Share

CALGARY, February 2, 2017 – 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 $0.12 per common share, payable on March 2, 2017 to all shareholders of record as of the close of business on February 14, 2017. This dividend represents a 9% increase over Crown’s previous quarterly dividend of $0.11 per share.

“The increased dividend reflects our success in building the portfolio over the past several quarters,” said Chris Johnson, President and CEO of Crown. “As we continue to execute on our growth plan, we expect to generate increasing earnings and cash flow and plan further dividend increases as the business develops.”

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 Increases Quarterly Dividend to $0.12 Per Share2020-05-12T18:05:30+00:00