Crown Capital Partners Inc. Announces Closing of a Subordinated Debt Agreement with Petrowest Corporation

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CALGARY, Sept. 29, 2015 /CNW/ - Crown Capital Partners Inc. ("Crown") (TSX: CRN) today announced the closing of a subordinated debt agreement (the "Agreement") with Petrowest Corporation ("Petrowest") (TSX: PRW).

The Agreement provides for a $15 million term loan to Petrowest by Crown Capital Fund IV, LP ("Crown 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 11% per annum, compounded and payable monthly, and matures in 36 months. Petrowest has the option to prepay certain amounts within certain periods of time with or without a penalty.

Under the terms of the Agreement, Petrowest has granted to Crown IV LP 4,300,000 warrants. Each warrant entitles Crown IV LP to purchase one class A common share in the capital of Petrowest at an exercise price of $0.40 for a period of five years.

Petrowest is an Alberta corporation involved in both industrial and civil infrastructure projects, as well as pre-drilling and post-completion energy services, gravel crushing and hauling for non-energy sector customers. Petrowest's primary operations are based in northwestern Alberta and northeastern British Columbia.

"Crown is pleased to provide Petrowest with additional financial flexibility at a time when Petrowest is poised to take advantage of increased development activity in British Columbia. Based on past experience working with Petrowest, we have great respect for Petrowest's management and are confident in their ability to continue to grow the company" says Chris Johnson, President and CEO of Crown.

"Petrowest is excited to have completed this transaction. Crown is a proven business partner with a strong understanding of our business and the opportunities quickly approaching" says Rick Quigley, Petrowest's Chief Executive Officer.

ABOUT CROWN

Crown is a specialty finance company focused primarily on providing capital to successful Canadian companies, and to 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 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 (TSX: CRN) please visit our website www.crowncapital.ca.

SOURCE Crown Capital Partners Inc.

For further information: Christopher Johnson, President & CEO, chris.johnson@crowncapital.ca, (416) 640-6715


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