Canadian specialty finance firm Crown Capital Partners has amended its $15 million term loan agreement with Petrowest Corp (TSX: PRW), a Calgary infrastructure company. Additionally, Crown said it will provide Petrowest with a new $12 million bridge loan to enhance its financial flexibility while the company pursues a non-core asset disposition program. The two deals increased Crown’s equity ownership. Founded in 2006, Petrowest is focused on industrial and civil infrastructure projects, gravel crushing and hauling, as well as pre-drilling and post-completion energy services.
Crown Capital Partners Announces Amended Debt Agreement and New Bridge Loan Financing with Petrowest Corporation
CALGARY, May 23, 2017 /CNW/ – Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced that Crown Capital Fund IV, LP (“Crown IV LP”), an investment fund managed by Crown in which Crown holds a 35% interest, has amended its $15.0 million term loan agreement with Petrowest Corporation (“Petrowest”) (TSX: PRW) and completed a new $12.0 million bridge loan with the company.
The amended $15.0 million term loan bears a fixed interest rate of 12% per annum, compounded and payable monthly, and matures in 36 months. In addition, Crown IV LP will provide a $12.0 million bridge loan, which gives Petrowest additional financial flexibility while it pursues its previously announced non-core asset disposition program. The bridge loan bears interest at 12% per annum and matures on November 30, 2017. On closing of the bridge loan, Crown syndicated $2.0 million of the loan to one of the limited partners in Crown IV LP.
“We commend Petrowest for taking the difficult but necessary steps to sell non-core assets, reduce debt, and focus on increasing profitability in its core markets,” said Chris Johnson, President and CEO of Crown. “We are pleased to continue to support Petrowest through this transition period as their core business is profitable and well positioned for long-term success.”
As part of the amended term loan, the 4.3 million warrants previously issued to Crown IV LP were cancelled, and 4.3 million common shares of Petrowest were issued to Crown IV LP at nominal cost. The bridge loan agreement also included the issuance of 3 million common shares of Petrowest. In total, Crown IV LP now owns 7.7 million common shares of Petrowest.
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.
For further information: Craig Armitage, Investor Relations, firstname.lastname@example.org, (416) 347-8954
Photo courtesy of Petrowest Corp