CALGARY, June 26, 2017 – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the repayment by CRH Medical Corporation (“CRH”) of a special situations loan managed by Crown.
Based in Vancouver, CRH is a North American company focused on providing gastroenterologists throughout the United States with innovative services and products for the treatment of gastrointestinal diseases. Crown arranged a $22.5 million, 42-month term loan to CRH Medical in December 2014 to support the company’s acquisition of Gastroenterology Anesthesia Associates, LLC.
“CRH has been an outstanding client and performer, increasing both its EBITDA and market cap by more than 10 times since the start of our relationship,” said Chris Johnson, President and CEO of Crown. “Our capital enabled their first anesthesia services acquisition, and the team has executed a consolidation strategy to create tremendous value for shareholders. Concurrently, they have expanded their access to credit through an increased senior facility. We wish the company continued success.”
Edward Wright, Chief Executive Officer of CRH, commented, “Crown has been a very important and supportive partner in our business over the past several years, and their financing solution was the ideal one for CRH at the time, allowing us to execute on a transformational acquisition while minimizing dilution.”
CRH has prepaid this loan in full, including principal, interest and fees. The CRH loan was held by Norrep Credit Opportunities Fund II, LP and Norrep Credit Opportunities Fund II (Parallel), LP (collectively, the “NCOF Funds”), investment funds managed by Crown and in which Crown holds a 53.6% interest in aggregate. Crown has no further participation in CRH and the realized gross IRR on the loan was approximately 43%.
Crown (TSX: CRWN) 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 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 informationDownload (pdf) 157.48 KB