Crown Capital provides $25 mln in funding to PenEquity Realty

Canadian specialty finance firm Crown Capital Partners has provided a $25 million, 10-year term loan to PenEquity Realty Corp, a full-service real estate company focused on commercial shopping centres in Ontario. Toronto-based PenEquity, which specializes in large-scale destination retail-entertainment centres, as well as commercial and residential land development, currently has seven projects underway. Funding provided by Crown will be used to support its growth. PenEquity’s loan is the first transaction completed under Crown’s new long-term financing strategy. The strategy was a key part of the firm’s initial public offering and fundraising activity earlier this year.

PRESS RELEASE

Crown Capital Completes $25 Million Term Loan with PenEquity Realty Corporation

Represents Crown’s first Long-Term Financing Transaction

CALGARY, Dec. 16, 2015 /CNW/ – Crown Capital Partners Inc. (“Crown” or “the Company”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced the closing of a $25 million, 10-year term loan (the “Agreement”) with PenEquity Realty Corporation (“PenEquity”), a privately owned, full-service real estate company focused on commercial shopping centres in Ontario. This Agreement will be funded from Crown’s cash resources and represents the first loan under Crown’s Long-term Financing solutions line of business.

Founded in 1984, PenEquity has a strong track record of delivering successful retail sites across Ontario, having completed numerous projects representing more than 4.2 million square feet. Specializing in large-scale destination retail/entertainment centres as well as commercial and residential land development, PenEquity has developed a stable of key relationships with leading retailers and partners, including Choice Properties REIT, Longo’s and EPR Properties. In addition to the development of real estate assets on behalf of clients, PenEquity provides property, advisory and asset management services. PenEquity currently has seven projects underway (representing approximately two million square feet of development), two of which have commenced with others expected to begin in the next 12 months.

“We’re delighted to begin a relationship with PenEquity and support their growth plans,” said Chris Johnson, Crown’s President & CEO. “The company has a highly successful track record spanning more than 30 years and is led by a seasoned team of professionals. As their new projects are completed, they are well positioned to generate significant value from multiple revenue streams.”

Mr. Johnson added: “We see significant opportunity in the Canadian market to provide long-term financing to successful businesses like PenEquity. Our solutions offer business owners the capital to grow their company independently and without equity dilution, while providing Crown with attractive recurring cash flow.”

“The team at Crown clearly understands the needs of entrepreneurial-minded growth businesses like ours, and we’re pleased to partner with them as we bring multiple new projects on stream and build on our long history of delivering quality results for our clients, partners and tenants,” said David Johnston, President & CEO of PenEquity.

The specific financial terms of the Agreement have not been disclosed for confidentiality reasons, but are consistent with Crown’s stated return objectives for long-term transactions.

ABOUT CROWN

Crown (TSX: CRN) is a specialty finance company focused primarily on providing capital to successful Canadian and select U.S. companies which 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 transitory and permanent 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. To find out more about Crown, please visit www.crowncapital.ca.

FORWARD-LOOKING STATEMENTS

This 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 with respect to PenEquity’s expansion and growth plans; and the Corporation’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. 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: For Crown Capital: Craig Armitage, Investor Relations, craig.armitage@crowncapital.ca, (416) 347-8954

Photo courtesy of PenEquity Realty Corp