CALGARY, February 8, 2023 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced that it has entered an agreement for a new senior secured corporate credit facility of up to $43.5 million (“Credit Facility”) with Canadian Western Bank. This Credit Facility replaces Crown’s previous $23.5 million corporate credit facility.
The Credit Facility includes an amortizing term loan of $30.0 million, an operating loan of up to $10.0 million with availability subject to margin condition restrictions, and a letter of credit facility of $3.5 million. The term loan matures in five years and is comprised of an initial advance of $25 million plus $5 million to be advanced upon request by Crown prior to June 30, 2023. The Credit Facility provides financing at variable interest rates based on Prime Rate plus an applicable margin and includes customary covenants for an agreement of this nature.
“We’re pleased to finalize a new credit facility with Canadian Western Bank, a long-time financial partner to Crown,” said Chris Johnson, Crown’s President & CEO. “This new facility provides us with the necessary additional funding and flexibility to support the planned growth of our various operating businesses, including initiatives underway in our Network Services and Distribution Services operations.”
The Credit Facility will be used primarily to refinance existing senior debt and letters of credit, support the working capital and growth capital requirements of Crown and its operating businesses, and to fund Crown’s remaining capital commitment in respect of Crown Capital Power Limited Partnership.
About Crown Capital Partners (TSX:CRWN)
Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a capital partner to entrepreneurs and growth businesses mainly operating in the telecommunications infrastructure, distribution services, and distributed power markets. We focus on growth industries that require a specialized capital partner, and we aim to create long-term value by acting as both a direct investor in operating businesses serving these markets and as a manager of investment funds for institutional partners. For additional information, please visit crowncapital.ca.
For further information, please contact:
Craig Armitage
Investor Relations
craig.armitage@crowncapital.ca
(416) 347-8954