Crown Capital Partners Completes $25 Million Term Loan with Rokstad Holdings Corporation
Apr 29, 2019, 16:00 ET
CALGARY, April 29, 2019 /CNW/ - Crown Capital Partners Inc. ("Crown" or the "Corporation") (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced the closing of a $25 million term loan (the "Agreement") to Rokstad Holdings Corporation ("Rokstad"), a privately held company headquartered in Coquitlam, British Columbia, that provides power line construction and maintenance services to customers across North America.
Founded in 2008, Rokstad offers a full suite of power line services, including emergency and storm response, transmission and distribution line construction and maintenance and underground cable services. Rokstad is also a specialist in live line construction methods for distribution and transmission line projects. With operations throughout Canada and the United States, Rokstad has successfully grown from a mid-size contractor to one of the largest power line contractors in North America. The company's largest markets are British Columbia, California and Arizona.
"Rokstad is a well-established business with a diversified base of large, long-standing utility customers," said Chris Johnson, Crown's President & CEO. "The company has experienced very strong growth over the past several years as spending has increased significantly in its sector, driven by the aging transmission and distribution infrastructure, new technology and regulatory drivers. We are pleased to support the Rokstad team as they continue to capitalize on these trends and expand their business."
"Since the re-acquisition of the business from our former partners, we have experienced a growing pipeline of new projects and opportunities, and this new funding from Crown Capital provides additional financial strength and flexibility to support this growth," said Aaron Rokstad, CEO.
The Agreement provides for a term loan of up to $25.0 million to Rokstad by Crown Capital Partner Funding, LP ("Crown Partners Fund"), an investment fund managed by Crown and in which Crown holds a 37% interest. The term loan matures in 60 months and includes a bonus feature based on the growth in Rokstad's equity value.
About Crown Capital Partners (TSX:CRWN)
Founded in 2000, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co- invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.
FORWARD-LOOKING STATEMENTS
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 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