CALGARY, October 2, 2020 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced it has received proceeds from two loans:
- Crown received full repayment by CCI Wireless (“CCI”) of a $5.5 million term loan from Crown Partners Fund, following the recent acquisition of CCI by Xplornet Communications. CCI prepaid this loan in full, including principal, interest, fees and other payments. The CCI loan was held by Crown Partners Fund, an investment fund managed by Crown and in which Crown holds an effective interest of 39%. The realized Gross IRR on Crown Partners Fund’s aggregate investment in CCI was 17.2%.
- Crown also received $7.0 million from Mill Street & Co. Inc. (“Mill Street”). In May 2018, Crown completed a $10 million, 10-year loan with Mill Street through Crown Private Credit Fund, a wholly owned subsidiary of Crown. As previously disclosed, Crown issued a formal demand for payment in the first quarter of 2020. Crown expects to realize further proceeds from Mill Street in late 2020 and early 2021.
“We congratulate the CCI team on this transaction and wish them continued success. While it was a short-term loan, this was another successful investment for the investors in Crown Partners Fund,” said Chris Johnson, President and CEO of Crown. “Consistent with our plan, the proceeds from these two realizations will be used to pursue strategic opportunities and rationalize our capital structure.”
About Crown Capital Partners (TSX:CRWN)
Founded in 2000, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co-invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.
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 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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