CALGARY,
AB, Dec. 18, 2024 /CNW/ - Crown Capital
Partners Inc. ("Crown" or the "Corporation") (TSX: CRWN) today
announced that it has entered an agreement for a new senior secured
corporate credit facility of $15.0
million ("Credit Facility") with Sandton Capital Solutions
Master Fund VI, LP ("Sandton"), an investment fund managed by
Sandton Capital Partners. This Credit Facility replaces
Crown's previous corporate credit facility with Canadian Western
Bank.
The Credit Facility is comprised of a non-amortizing term loan
of C$15.0 million which is being
advanced in full today, and from which proceeds are being used
primarily to fully repay Crown's existing senior debt. The
terms of the Credit Facility include a maturity date of
December 18, 2026, monthly interest
that is based on a fixed interest rate of 15.5% per annum and that
is payable by capitalization to the principal amount of the debt, a
requirement to repay at least C$10.0
million of principal by March 31,
2026, and customary covenants for an agreement of this
nature.
"We are pleased to finalize this new credit facility with
Sandton and to fully normalize our credit arrangements", said
Chris Johnson, Crown's President
& CEO. "With this new two-year term facility in place, and with
the maturity date of our publicly traded debentures also recently
extended to December 2026, we will
now be able to better focus on the growth of our core businesses
while continuing to deleverage our balance sheet in an orderly
manner through the monetization of non-core assets and other
measures".
Deferred Debenture Interest Payment Update
Crown today also announced that as a result of not having made
the interest payment due on June 30,
2024 (the "Deferred Interest Payment") in respect of its 11%
unsecured subordinated debentures due December 31, 2026 (the "Debentures") on or before
December 17, 2024, it is in default
of the second amended and restated trust indenture dated
October 25, 2024 (the "Indenture")
that governs the Debentures.
At a special meeting of the holders of the Debentures (the
"Debentureholders") held on October 18,
2024, the Debentureholders approved an extraordinary
resolution that, among other things, waived the default by the
Corporation under the Indenture for the failure to make the
Deferred Interest Payment (the "Default Waiver"), subject to the
requirement that the Corporation make the Deferred Interest Payment
to Debentureholders within 60 days of the approval of the
extraordinary resolution of the Debentureholders (the "Deferred
Interest Payment Deadline"). As the Deferred Interest Payment was
not made by the Deferred Interest Payment Deadline, the Default
Waiver is of no further force or effect.
Notwithstanding the foregoing, with the Corporation's new Credit
Facility now in effect, the Deferred Interest Payment is expected
to be made to Debentureholders holding Debentures as of a record
date to be set and announced by the Corporation in the coming
days.
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.
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 in this news
release include, but are not limited to, statements, management's
beliefs, expectations or intentions regarding the growth and
deleveraging of Crown and its subsidiaries, the monetization of
non-core assets, the payment of the Deferred Interest Payment and
the record date for the Deferred Interest Payment. 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.
SOURCE Crown Capital Partners Inc.
