Proceeds used to finance acquisition of Advantech Wireless Inc.’s RF and Microwave Divisions
CALGARY, January 17, 2018 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the closing of a $33.0 million term loan (the “Agreement”) to Baylin Technologies Inc. (“Baylin”) (TSX: BYL), a global provider of innovative wireless antenna solutions with over 39 years of experience in designing, manufacturing and supplying antennas for the wireless infrastructure, networking and mobile markets.
Headquartered in Toronto, Baylin maintains world-class R&D and engineering capabilities in Arizona, USA and Ottawa, Canada. Baylin is one of a few antenna manufacturers with design capabilities in indoor and outdoor cellular antenna systems, small cells, set-top boxes and mobile phones. To date, Baylin has produced more than one billion antennas and designed over 2,000 unique custom antennas. The company has production capacity of 250 million antennas per year across three manufacturing facilities in China, South Korea, and Vietnam.
Baylin has used the proceeds of the term loan to acquire the radio frequency, terrestrial microwave and antenna equipment divisions of Advantech Wireless Inc. and its affiliates (collectively, “Advantech”). Advantech is a provider of wireless broadband communications solutions, whose innovative solutions have, for more than 25 years, enhanced the capabilities of government and commercial clients in over 150 countries. Advantech is headquartered in Montreal and has offices across North America, South America, and Europe.
“We’re pleased to support Baylin in executing this transformative acquisition,” said Chris Johnson, Crown’s President & CEO. “Baylin has the characteristics of the successful companies we target, including a long-standing, blue-chip customer base, very positive industry trends, and robust revenue and EBITDA growth. Building off its strong core business, the acquisition of Advantech’s RF and Microwave business significantly expands Baylin’s presence in the wireless infrastructure market, which is projected to grow strongly in the coming years based on the rapid rise in mobile data traffic and expectations for network connectivity anytime, anywhere.”
“The Crown team has been a valuable contributor in the acquisition of Advantech’s RF and Microwave business and we look forward to working with them as we continue to grow our business,” said Randy Dewey, President and CEO of Baylin.
The Agreement provides for a $33.0 million term loan to Baylin, of which Crown Capital Fund IV, LP (“Crown IV LP”), an investment fund managed by Crown in which Crown holds a 36.5% interest, has advanced $30.0 million. Crown syndicated $3.0 million of the loan to two of Crown Fund IV’s institutional limited partners, Portland Private Income LP and Nicola Wealth Management’s Private Debt Fund. The term loan bears a fixed interest rate of 9.0% per annum and matures in 60 months. In addition, a total of 682,500 warrants of Baylin were issued to Crown IV LP and its syndicate partners.
Raymond James acted as exclusive placement agent to Baylin with respect to the term loan and acted as exclusive financial advisor to Baylin on the acquisition of Advantech.
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.
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 using 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 and future performance of Baylin. 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 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.