CALGARY, Jan. 18, 2017 /CNW/ - Crown Capital Partners Inc. ("Crown" or "the Corporation") (TSX: CRN), which provides growth capital to successful mid-market companies, today announced it has completed a $50 million closing for Crown Capital Fund IV, LP. ("Crown IV LP" or the "Fund"), bringing the current total capital committed to the Fund to $175 million. To date, $110 million has been invested by the Fund in six transactions.
"This upsizing deepens our relationships with our institutional limited partners and is a clear testament to the quality of our growing portfolio," said Chris Johnson, Crown's President & CEO. "We continue to deliver on our key milestones. We have completed three transactions since November 2016, adding $60 million of new investments into Crown IV LP. With this additional capital and our recently-completed $35 million credit facility, we have significantly increased Crown's funding capacity, which we will use to capitalize on the demand for customized financing solutions in Canada's middle market."
Crown IV LP invests in Special Situations Financing transactions originated and managed by Crown. These consist of senior and subordinated loans with terms ranging from six months to five years, and are structured to limit ownership dilution and provide the borrower client with the ability to focus on growing their business. Crown IV LP has a maximum size of $300 million, with additional closings expected up until September 2018 as financing opportunities are identified. Crown, through its wholly-owned subsidiary Crown Capital Funding Corporation, increased its capital commitment to the Fund by $11.25 million to $61.25 million. Crown's increased commitment to CCF IV LP will be funded, in part, by its recently completed $35 million credit facility. After this closing, Crown holds a 35% interest in the Fund.
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 future growth of the portfolio and market demand for Crown's solutions. 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.
SOURCE Crown Capital Partners Inc.
For further information: Craig Armitage, Investor Relations, [email protected], (416) 347-8954