Monthly Archives: May 2017

CALGARY, May 31, 2017 – Crown Capital Partners Inc. (“Crown” or “the Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the closing of a $30 million special situations term loan (the “Agreement”) with Marquee Energy Ltd. (“Marquee”) (TSXV: MQX).

Marquee is a Calgary-based company engaged in the acquisition, exploration, development and production of petroleum and natural gas reserves focused in western Canada. Marquee’s primary assets are located in the Michichi area of southern Alberta. The company has current production of approximately 2,800 barrels of oil equivalent production per day (“boepd”), of which approximately 57% is natural gas and 43% is oil and natural gas liquids. The company’s land base includes approximately 386,000 net acres of total land, with 172,000 net acres of undeveloped land. Marquee is focused on growing through exploitation of existing opportunities and continued consolidation within its core area. Crown’s capital will be used to repay the existing senior debt facility and to fund Marquee’s capital program.

“We are pleased to support Marquee as it executes on a low-risk development plan in a proven region,” said Chris Johnson, Crown’s President & CEO. “Marquee has a significant asset base and is led by a highly experienced team. This additional capital will enable them to increase production, cash flow and create substantial value.”

“Closing the Crown facility is another significant milestone for Marquee.  The additional funds will enable us to accelerate our drilling program in the highly attractive Michichi area and unlock tremendous value for our shareholders.  Crown’s growth-orientated loan structure is an ideal capital solution for Marquee in the current financial environment,” said Richard Thompson, President & CEO of Marquee.

The Agreement provides for a $30 million term loan to Marquee 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 10% per annum, matures in 60 months, and includes warrants to acquire 37.5 million common shares of Marquee, exercisable at $0.11 per share.

ABOUT CROWN

Crown (TSX: CRWN) 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 outlook for Petrowest. 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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CALGARY, May 26, 2017 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the repayment by Distinct Infrastructure Group Inc. (“Distinct”) of a special situations loan managed by Crown.

Headquartered in Toronto, Distinct is a turnkey solutions firm providing design, engineering, construction and maintenance services to telecommunication firms, utilities and government bodies. Crown arranged a $20.0 million, five-year term loan to Distinct in November 2015 to support the company’s growth.

“Distinct has done an excellent job of growing its business and creating value, by capitalizing on the growing market demand for high-speed fiber installation capabilities,” said Chris Johnson, President and CEO of Crown. “This performance enabled Distinct to secure an expanded facility with their existing senior lender, and we wish the team continued success.”

“Crown has been an important financial partner to Distinct and their capital was instrumental in allowing us to successfully execute on our growth plan,” said Alex Agius, Co-Chief Executive Officer of Distinct.

Distinct has prepaid this loan in full, including principal, interest and fees. The Distinct loan was held by Crown Capital Fund IV, LP (“CCF IV LP”), an investment fund managed by Crown and in which Crown holds a 35% interest. CCF IV LP continues to own common shares of Distinct.

ABOUT CROWN

Crown (TSX: CRWN) 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 outlook for Petrowest. 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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CALGARY, May 23, 2017 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced that Crown Capital Fund IV, LP (“Crown IV LP”), an investment fund managed by Crown in which Crown holds a 35% interest, has amended its $15.0 million term loan agreement with Petrowest Corporation (“Petrowest”) (TSX: PRW) and completed a new $12.0 million bridge loan with the company.

The amended $15.0 million term loan bears a fixed interest rate of 12% per annum, compounded and payable monthly, and matures in 36 months. In addition, Crown IV LP will provide a $12.0 million bridge loan, which gives Petrowest additional financial flexibility while it pursues its previously announced non-core asset disposition program. The bridge loan bears interest at 12% per annum and matures on November 30, 2017. On closing of the bridge loan, Crown syndicated $2.0 million of the loan to one of the limited partners in Crown IV LP.

“We commend Petrowest for taking the difficult but necessary steps to sell non-core assets, reduce debt, and focus on increasing profitability in its core markets,” said Chris Johnson, President and CEO of Crown. “We are pleased to continue to support Petrowest through this transition period as their core business is profitable and well positioned for long-term success.”

As part of the amended term loan, the 4.3 million warrants previously issued to Crown IV LP were cancelled, and 4.3 million common shares of Petrowest were issued to Crown IV LP at nominal cost. The bridge loan agreement also included the issuance of 3 million common shares of Petrowest. In total, Crown IV LP now owns 7.7 million common shares of Petrowest.

ABOUT CROWN

Crown (TSX: CRWN) 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 outlook for Petrowest. 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 also announces appointment of Michael Overvelde as Chief Financial Officer

CALGARY, May 9, 2017 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced its financial results for the first quarter ended March 31, 2017. Crown’s complete financial statements and management’s discussion and analysis for the three-month period ended March 31, 2017 are available on SEDAR at www.sedar.com.

Q1 2017 Financial & Operating Highlights

• Revenue increased to $6.8 million (2016 – $5.1 million), including interest revenue of $4.4 million, fees and other income of $0.5 million, and net change in unrealized gains in fair value of investments of $1.8 million;
• Net income, net of non-controlling interests, of $1.7 million (2016 – $1.6 million), or $0.18 per common share (basic) (2016 – $0.17);
• Adjusted EBIT¹ of $3.0 million (2016 – $2.7 million);
• Total equity per common share (basic) of $10.75 at March 31, 2017;
• Total assets of $199.0 million at March 31, 2017, up from $182.4 million at December 31, 2016;
• Cash and cash equivalents of $22.2 million, compared with $19.3 million at December 31, 2016,
• On March 2, 2017, paid a quarterly dividend of $0.12 per common share to shareholders of record on February 14, 2017, a 9% increase over quarterly dividends paid previously;
• Crown Capital Fund IV, LP (“CCF IV LP”) received subscriptions for an additional $50.0 million, bringing the total capital committed in CCF IV LP to $175.0 million;
• CCF IV LP provided a $15.0 million, 36-month loan to Solo Liquor Holdings Limited; and
• The NCOF Funds received full repayment of the $4.0 million loan to Corrosion Service Company Limited, realizing a Gross IRR of approximately 25%.

“Our first quarter results were highlighted by a strong increase in total revenue, driven by interest revenue which almost doubled over the first quarter of last year,” said Chris Johnson, President and CEO of Crown. “This underscores our success in building and diversifying the loan portfolio over the past several quarters, and gave us the ability to implement our first dividend increase in the quarter. The market conditions continue to be favorable for Crown. With the $50 million upsizing in CCF IV LP, cash on hand, and our credit facility, we are in a good position to capitalize on an active business development pipeline to deliver growing revenue, cash flow and return on equity in 2017.”

CFO Appointment

Crown also announced the appointment of Michael Overvelde, CPA, CA, CFA to the position of Senior Vice President, Finance and Chief Financial Officer effective May 10, 2017. Mr. Overvelde, who has more than 25 years of experience in capital markets and accounting, joined the Crown team in March, 2017. Lyle Bolen will remain with the Corporation in a consulting capacity to ensure a smooth transition of responsibilities.

Mr. Johnson said: “Lyle has been a tremendous colleague and contributor since the early days of Crown and was instrumental in our transition to a public company. On behalf of the entire Crown team and Board, we wish Lyle all the best in his retirement. We look forward to Michael taking on an expanded role, leading the financial function and helping us expand and manage our relationships in the capital markets.”

Conference Call & Webcast

Crown will host a conference call to discuss its Q1 2017 financial results at 2:00 p.m. EDT on May 9, 2017. 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 13498625. The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or at http://bit.ly/2ptmkXW. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected.

ABOUT CROWN

Crown (TSX: CRWN) 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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