Canadian specialty finance firm Crown Capital Partners has closed a $15 million, five-year term loan agreement with Bill Gosling Outsourcing Holding Corp (BGO), a Newmarket, Ont.-based supplier of accounts receivable management services and call centre solutions to global customers. Crown Capital President and CEO Chris Johnson said the debt funding will support the company’s continued growth, which is benefiting from “the ongoing shift to business process outsourcing.” Founded in 1955, BGO was formerly known as Allied Global Holdings Inc. It has been a portfolio investment of Canadian private equity firm Fulcrum Capital Partners since January 2007.
Crown Capital Completes $15 Million Term Loan with Bill Gosling Outsourcing
CALGARY, May 25, 2016 /CNW/ – Crown Capital Partners Inc. (“Crown”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced the closing of a $15 million, five-year term loan agreement (the “Agreement”) with Bill Gosling Outsourcing Holding Corp. (“BGO”), formerly Allied Global Holdings Inc., a global provider of call center solutions to blue-chip clients.
Headquartered in Newmarket, Ontario, BGO offers a full suite of customer contact solution services, including accounts receivable management, customer care, and customer sales & acquisition, and operates nine call centers in Canada, the U.S., the U.K. and Philippines. Founded in 1955, BGO’s key customers include Fortune 100 and Fortune 1000 companies in the financial, communications, utility and government sectors. BGO maintains strong relationships with its customers, with average tenure of more than 10 years for its top 10 customers.
“Bill Gosling Outsourcing is a successful, well-managed company and is a leader in its niche,” said Chris Johnson, Crown’s President & CEO. “Building on its successes, BGO will continue to benefit from the ongoing shift to business process outsourcing. Driven by growth from key customers and its Philippines expansion, BGO expects to increase revenue and EBITDA significantly over the next three years. We are pleased to partner with them as they continue to grow the business.”
“The Crown team clearly understands how to work with entrepreneurs and growth companies, and they provided a financial solution that is aligned with our business requirements and plans,” said Dave Rae, CEO of BGO.
The Agreement provides for a $15 million term loan to BGO by Crown Capital Fund IV, LP, an investment fund managed by Crown and in which Crown holds a 50% interest. The term loan bears a fixed interest rate of 12% per annum, compounded and payable monthly, and matures in 60 months.
Crown (TSX: CRN) 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 in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding the business process outsourcing industry; BGO’s expansion and growth plans; and Crown’s business plans and strategy. 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. 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.
For further information: Craig Armitage, Investor Relations, email@example.com, (416) 347-8954
Photo courtesy of Bill Gosling Outsourcing Holding Corp