Crown Capital Announces New C$15.0 Million Credit Facility

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.