Aleksandar

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.

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 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.

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CALGARY, January 9, 2018 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced that Chris Johnson, Crown’s President & CEO, will present at the AltaCorp Capital / ATB Corporate Financial Services 6th Annual Institutional Investor Conference in Toronto.

Crown’s fireside chat is scheduled for January 11, 2018 at 2:50 p.m. EST and will also be webcast live at www.meetview.com/AltaCorp-ATB2018.

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.

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CALGARY, December 29, 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 $8.0 million term loan (the “Agreement”) with Canadian Helicopters Limited (“Canadian Helicopters”), which is part of the HNZ Group of Companies (“HNZ”) (TSX: HNZ), an international provider of helicopter transportation and related support services.

Canadian Helicopters is the largest helicopter transportation services company in Canada with a network of 11 strategically located fixed bases to support operations throughout the country. Canadian Helicopters owns and operates 91 light, medium, and heavy lift helicopters. In addition to charter services, Canadian Helicopters provides flight training and helicopter repair and maintenance services. Its customers include the US Department of Defense (North Warning System), Canadian Department of National Defense, Federal Government of Canada, Nova Scotia Department of Health and Bell Helicopter.

On October 31, 2017, HNZ and PHI, Inc. (“PHI”) announced they have entered into an arrangement agreement pursuant to which Don Wall, HNZ’s President and CEO, will acquire all the issued and outstanding shares of HNZ. As part of the arrangement, PHI will acquire the portion of HNZ’s offshore business conducted in New Zealand, Australia, the Philippines and Papua New Guinea, and Don Wall will retain Canadian Helicopters (the onshore operations). Total onshore revenues for the three- and nine-month periods ended September 30, 2017 were $29.2 million and $57.4 million, respectively.

“We’re pleased to support Don and his team in the acquisition of Canadian Helicopters,” said Chris Johnson, Crown’s President & CEO. “This is a very well-established operation with a solid reputation for safety and quality of service. The business is underpinned by multi-year contracts with blue-chip clients and a large fleet of owned helicopters. Going forward, the company is well positioned to benefit from improving commodity markets and an increase in the usage of helicopters for disaster relief efforts.”

“Crown’s financing solution was the ideal complement to our senior facility,” said Don Wall, President & CEO of Canadian Helicopters. “The Crown team understood our business quickly and was able to get us a commitment in less than two weeks.”

The Agreement provides for a $8.0 million term loan to Canadian Helicopters by Crown Capital Fund IV, LP, an investment fund managed by Crown and in which Crown holds a 36.5% interest. The term loan bears a fixed interest rate of 10% per annum, matures in 60 months, and includes a bonus feature based on the growth in Canadian Helicopters’ enterprise value. Canadian Helicopters has also arranged for a $75.0 million, 3-year senior credit facility led by Canadian Western Bank.

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 Canadian Helicopters and the demand for its services. 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. 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, December 21, 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 $7.0 million term loan (the “Agreement”) with Active Exhaust Corp. (“Active”).

Active manufactures complete exhaust systems and components for major global original equipment manufacturers (“OEMs”) operating in the off-road equipment sector, primarily in the agricultural, construction and turf care markets. Active is headquartered in Toronto and has manufacturing operations in Toronto, as well as China and India through majority-owned joint ventures. Active has a diverse group of blue-chip OEM customers, including four of the largest equipment manufacturers in the world. Crown’s term loan will be used to support a management buyout of the minority shareholders.

“Active has a 50-year track record in the off-road equipment sector and strong fundamentals, including long-term production agreements with leading OEMs and a highly experienced and tenured management team,” said Chris Johnson, Crown’s President & CEO. “The company has experienced rapid growth in recent years and is well positioned to benefit from continued growth with their major customers, as well as increasing environmental regulations in the off-road vehicle industry. Active has invested heavily in R&D and is considered a leader in catalyzed and integrated solutions to OEMs in meeting higher emission standards.”

“Crown’s tailored solution was the optimal alternative to enable this transaction,” said Peter Hampton, President & CEO of Active Exhaust. “We were also attracted to their team’s experience supporting growth businesses like ours.”

The Agreement provides for a $7.0 million, 66-month term loan to Active by Crown Capital Fund IV, LP, an investment fund managed by Crown and in which Crown holds a 36.5% interest. In addition to the fixed interest rate, the Agreement includes a bonus feature based on the growth in Active’s enterprise value.

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 Active Exhaust. 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. 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, November 17, 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 Medicure Inc. (“Medicure”) (TSXV: MPH) of a special situations loan managed by Crown.

Medicure is a pharmaceutical company focused on the development and commercialization of therapeutics for the U.S. cardiovascular market.  Crown arranged a $60.0 million, four-year term loan to Medicure in November 2016, of which Crown Capital Fund IV, LP (“Crown IV LP”), an investment fund managed by Crown in which Crown holds a 36.5% interest, advanced $30 million, with the remaining $30 million syndicated to a limited partner in Crown’s funds. Medicure used the proceeds to purchase additional shares of Apicore, a developer and manufacturer of specialty Active Pharmaceutical Ingredients and pharmaceuticals. In October 2017, Medicure announced that it sold its interests in Apicore.

“The Apicore acquisition was a tremendous value-creating transaction for Medicure and we wish the team continued success as they advance their growth plans,” said Chris Johnson, President and CEO of Crown. “This loan generated strong returns for Crown and its investors.”

“Crown has been an excellent financial partner to Medicure, and their financing solution and speed of execution were instrumental in allowing us to execute on this very successful acquisition while minimizing dilution,” said Dr. Albert D. Friesen, Medicure’s President and Chief Executive Officer.

Medicure has prepaid this loan in full, including principal, interest and fees. Crown IV LP continues to own warrants to acquire 450,000 common shares of Medicure, exercisable at $6.50 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 Crown’s dividend and future increases to the dividend. 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. 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 Financial Results for Q3 2017

CALGARY, November 8, 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 third quarter ended September 30, 2017. Crown’s complete financial statements and management’s discussion and analysis for the three- and nine-month periods ended September 30, 2017 are available on SEDAR at www.sedar.com.

Q3 2017 Financial & Operating Highlights

• Total revenue increased to $5.6 million (2016 – $2.9 million) in Q3 and $20.1 million (2016 – $12.9 million) for the fiscal year to date.
  • Q3 2017 results included interest revenue of $4.8 million, fees and other income of $0.1 million, a net realized loss from investments of $(1.1) million, and a net change in unrealized gains in fair value of investments of $1.7 million.
• Net income, net of non-controlling interests, of $1.1 million (2016 – $0.8 million), or $0.12 per common share (basic) (2016 – $0.09).
• Adjusted EBIT¹ of $2.0 million in Q3 (2016 – $1.5 million).
• Total equity per common share (basic) of $10.85 at September 30, 2017.
• Total assets of $216.3 million at September 30, 2017, up from $182.4 million at December 31, 2016.
• Cash and cash equivalents of $15.7 million, compared with $19.3 million at December 31, 2016.
• On August 8, 2017, declared a quarterly dividend of $0.13 per share, an increase of 8% over the previous quarterly dividend of $0.12 per share, representing the second increase since the dividend was initiated in January 2016.
• Completed a $50 million closing for Crown Capital Fund IV, LP (CCF IV LP), bringing the current total capital committed to the fund to $225 million.
• On November 3, 2017, the Court of Queen’s Bench of Alberta approved the sale of Petrowest’s Civil division to RBee Aggregate Consulting Ltd. (“RBee”), a newly established company in which CCF IV LP holds an approximate 46% interest, for total consideration of $29.0 million. The acquisition will be partially funded with the assumption of approximately $17 million of Petrowest loans, subject to closing adjustments, held by CCF IV LP and its syndicate partner, which will hold a 50% equity interest in RBee with a cost base of $5 million (CCF IV LP interest – $4.6 million) and an interest-bearing, second-lien loan to RBee of approximately $12 million (CCF IV LP interest – approximately $11 million).
• On November 7, 2017, Crown announced a quarterly dividend of $0.13 per share to shareholders of record on November 17, 2017.

“After a highly active second quarter for new transactions, as well as two successful repayments, we experienced a slow quarter in terms of new loan origination, but we have experienced an uptick in activity in recent months, which we believe puts us on track to meet our annual deployment target,” said Chris Johnson, President and CEO of Crown. “In addition, we continued to focus on our other strategic priorities such as capital development. The third quarter saw us complete another upsizing of $50 million in Crown IV LP, further underscoring the quality of our portfolio and the strong demand from institutional limited partners. The committed capital in the fund, combined with cash on hand and our credit facility, gives us substantial resources to continue growing and diversifying our investments in the coming quarters and capitalize on the strong demand we see in the mid-market for our customized, non-dilutive solutions.”

Conference Call & Webcast

Crown will host a conference call to discuss its Q3 2017 financial results at 8:30 a.m. EDT on November 8, 2017. The call will be hosted by Chris Johnson, President & CEO, and Michael Overvelde, CFO. To participate in the call, dial 647-427-7450 or 1-888-231-8191 using the conference ID 8497077. The audio webcast can be accessed at www.crowncapital.ca under Investor Relations or at http://bit.ly/2x5yxT1. 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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CALGARY, November 7, 2017 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced that its Board of Directors has declared a dividend of $0.13 per common share, payable on December 1, 2017 to all shareholders of record as of the close of business on November 17, 2017.

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: 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 Crown’s dividend and future increases to the dividend. 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. 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, November 3, 2017 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today provided an update on the restructuring of Petrowest Corporation (“Petrowest”) (TSX:PRW). Crown Capital Fund IV, LP (“Crown IV LP”) and a syndicate partner have a total of $27 million of loans outstanding to Petrowest, $25 million of which is due to Crown IV LP. Crown has an effective interest of approximately 36.5% in Crown IV LP.

Since the application for receivership on August 15, 2017 and appointment of Ernst & Young Inc. (“EY”) as court-appointed receiver, substantially all the assets of Petrowest have been prepared for sale or monetized. In relation to the sale and/or sale process, the Court of Queen’s Bench of Alberta approved the following:

• RBee Aggregate Consulting Ltd. (“RBee”), a newly established company owned by Crown IV LP and management of the operations of RBee Crushing, will acquire Petrowest’s Civil division as a going concern. The total consideration offered is $29.0 million, which includes the assumption of approximately $17.3 million of Crown IV LP’s loans to Petrowest, subject to closing adjustments. The balance of the consideration will be funded with third-party bank debt. The collective investment of Crown IV LP and its syndicate partner in RBee will comprise a combination of a 50% equity interest in RBee with a cost base of $5 million and a $12.3 million interest-bearing, second-lien loan;
• RBee has made a bid to acquire Petrowest’s Rental division as a going concern. The total consideration offered is $3.6 million, which includes the assumption of $2.2 million of Crown IV LP and its syndicate partner’s loans to Petrowest. The balance of the consideration will be funded with third-party bank debt;
• Timber Pro Logging Ltd. will acquire Petrowest’s Cutbank transportation division as a going concern for an undisclosed price; and
• Century Services Corp. has made a bid for substantially all Petrowest’s equipment from discontinued operations. The cash consideration offered is $18.8 million.

Proceeds from the above transactions, combined with the collection of general accounts receivable and sale of smaller assets, is expected to generate net proceeds in the range of $60 million to $70 million, of which approximately 90% of the low end of the range has been confirmed by completed sales and/or guaranteed bids.  Using the low end of the range, net of professional fees, priority payables and payments to the senior bank syndicate, Crown IV LP expects to recover, through its ownership interest in and loans to RBee and from other cash proceeds on the sale of Petrowest’s assets, the full amount of its outstanding loans to Petrowest.

“We’re delighted to be proceeding with the acquisition of the Civil division in partnership with RBee management. RBee is a well-run operation with a long history of profitability,” said Chris Johnson, President and CEO of Crown. “We are hopeful RBee’s bid for the Rental division is also successful.”

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 Crown’s ability to recover its investment in Petrowest or to acquire the Petrowest Civil and Rental divisions. 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.

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