Canadian specialty finance firm Crown Capital Partners has provided a $25 million term loan to Ferus Inc, a Calgary supplier of energized fluids (liquid nitrogen and liquid carbon dioxide) and related logistical and operational services to the oil and gas industry. Founded in 2002, Ferus operates six production plants and maintains a logistics fleet as well as wellsite storage units to facilitate delivery of fracturing inputs. The company will use the funds raised to repay an existing senior credit facility and support growth. Earlier in 2017, Crown provided $30 million in funding to Marquee Energy Ltd and $15 million to Solo Liquor Holdings Ltd.
Crown Capital Partners Announces $25 Million Term Loan with Ferus Inc.
CALGARY, June 27, 2017 /CNW/ – Crown Capital Partners Inc. (“Crown” or “the Corporation”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the closing of a $25 million term loan (the “Agreement”) with Ferus Inc. (“Ferus”).
Headquartered in Calgary, Ferus provides a dedicated supply of energized fluids (liquid nitrogen and liquid carbon dioxide), as well as the related logistical and operational services to deliver those products and frac sand to customers in the energy industry. The company is the leading provider of industrial gases to the Canadian energy market where its products are integral to the energized hydraulic fracturing process. Ferus has the strategic advantage of owning and operating the complete supply chain, from gas production through to last-mile delivery. The company has six strategically located production plants and maintains a logistics fleet as well as network of specialty wellsite storage units to facilitate the efficient delivery of essential fracturing inputs. Crown’s term loan will be used to repay Ferus’ existing senior credit facility and to support Ferus’ growth objectives.
“Ferus is a leader in its field with a blue-chip client base and key assets throughout the Western Canadian Sedimentary Basin,” said Chris Johnson, Crown’s President & CEO. “While the oil and gas industry has been faced with challenges through this cyclical downturn, the company is poised to capitalize on a sector recovery and the continued trend of longer horizontal wells with additional frac stages, which is expected to drive increased demand for Ferus’ integrated product offering in the coming years.”
“We look forward to working with Crown as we capitalize on the shift to higher intensity fracs and ‘last-mile’ logistics for hydraulic fracturing. With a Calgary base and other investments in the sector, Crown is an ideal partner to support Ferus at this stage of our business,” said Dick Brown, President & CEO of Ferus.
The Agreement provides for a $25 million term loan to Ferus by Crown Capital Fund IV, LP, an investment fund managed by Crown and in which Crown holds a 35% interest.
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, email@example.com, (416) 347-8954
Photo courtesy of Ferus Inc