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Crown Capital Announces New Credit Facility for Crown Partners Fund

CALGARY, February 7, 2019 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced that Crown Capital Partner Funding, LP (“Crown Partners Fund” or the “Fund”) has entered into an agreement for a $25.0 million senior secured revolving credit facility (“Credit Facility”) with Alberta Treasury Branches (“ATB”).  Crown Partners Fund is the primary vehicle through which Crown provides event-driven financing solutions to mid-market businesses.  The Fund currently has 13 loans outstanding totaling approximately $201 million.

“This new credit facility represents another important capital development milestone for Crown, giving us additional capacity to support the growth of this special situations portfolio while managing fund flows more efficiently,” said Chris Johnson, Crown’s President & CEO. “We appreciate the continued support of ATB and are pleased to broaden our relationship with them. We anticipate increasing this credit facility over time as we continue to build the investment portfolio.”

In 2018, Crown announced several amendments to Crown Partners Fund, including the extension of the investment period to the end of 2019, with provisions to further extend the investment period with the approval of limited partners, and an increase in the maximum size of the Fund to $500 million, from $300 million previously.

The Credit Facility provides financing at a variable interest rate based on the Bankers’ Acceptance rate plus 225 bps to 325 bps and has a customary set of covenants. The Credit Facility matures in May 31, 2022 and is subject to extension annually.

Crown also announced that it has extended the maturity of its existing $35.0 million senior secured revolving corporate credit facility, to May 31, 2021.

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.

 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 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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