CALGARY, February 27, 2017 – Crown Capital Partners Inc. (“Crown” or “the Corporation”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced the closing of a $15.0 million special situations term loan (the “Agreement”) with Solo Liquor Holdings Ltd. (“Solo”), the second largest liquor retailer in Alberta and largest private liquor retailer in the province.
Headquartered in Calgary, Solo currently operates 41 retail liquor stores in high-traffic locations in Alberta, including 19 stores in Calgary, 13 in Edmonton and the remaining 9 in other communities across Alberta. Founded in 1996, the company is 100% owned by senior management. Solo will use Crown’s capital to expand its store network over the next several years.
“Solo has built an attractive long-term growth profile using a simple strategy: open stores in high-traffic residential areas, offer a wide range of products, operate with extended hours and maintain everyday low prices,” said Chris Johnson, Crown’s President & CEO. “Solo has a low-cost, scalable and repeatable model, and we believe they can generate significant value in the coming years through a low-risk store expansion plan. We are pleased to partner with them as they embark on this next phase of growth.”
“We were attracted to Crown because they offered a non-dilutive financing alternative and have a history supporting growth businesses like ours,” said Pali Bedi, Solo’s CEO. “We look forward to working with them as we build out our network.”
The Agreement provides for a $15 million term loan to Solo 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 12% per annum, matures in 36 months, and includes a bonus feature based on the growth in Solo’s enterprise value.
ATB M&A Advisory Services acted as exclusive financial advisor to Solo.
Crown (TSX: CRN) 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 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 future growth and performance of Solo. 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. 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.