CALGARY, May 17, 2018 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the closing of a $10 million, 10-year loan (the “Agreement”) with Mill Street & Co. Inc. (“Mill Street”), a Canadian diversified operating company, with small- to medium-size, privately held subsidiaries, primarily based in Southern Ontario.
Mill Street provides successful entrepreneurs with a succession plan and liquidity by acquiring up to 100% of the entrepreneur’s business with the objective of creating value-added growth through a unique performance-based culture. Mill Street has ownership positions in nine operating companies in diversified sectors, including construction services, building supply, wholesale & logistics and financial services.
“Mill Street’s focus on working with entrepreneurs of profitable small- and medium-sized businesses aligns perfectly with our philosophy,” said Chris Johnson, Crown’s President & CEO. “Mill Street has done an excellent job of building a diversified operating platform that generates stable and growing cash flow. We look forward to working with them as they take advantage of the large and growing market need among private businesses for an experienced and reputable succession partner.”
“Crown’s customized, long-term financing solution is well-suited to our needs and will enable us to further capitalize on growth opportunities,” said Noah Murad, President of Mill Street. “We have admired Crown’s established track record and reputation for many years and view the Crown team as an ideal financial partner for our business.”
The Agreement provides for a $10 million, 10-year term loan to Mill Street, which will be funded as a long-term loan on Crown’s balance sheet. The term loan has a floating interest rate based on the five-year Government of Canada Bond yield plus 10% (subject to a minimum of 12%) and includes an equity participation right based on the growth in Mill Street’s equity value per share.
Crown (TSX: CRWN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies. 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 Mill Street. 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.