CALGARY, Feb. 28, 2017 /CNW/ - Crown Capital Partners Inc.
("Crown" or the "Corporation") (TSX: CRN), which provides growth capital to successful mid-market
companies, today announced the repayment by Corrosion Service Company Limited ("Corrosion") of a special situations loan
managed by Crown.
Established in 1950, Corrosion is the second-largest corrosion engineering firm in Canada
focused mainly on corrosion mitigation for the midstream energy industry. Crown arranged a $4.0
million, five-year loan to Corrosion in April 2015 to support a management buyout. Corrosion
has prepaid this loan in full, including principal, interest and fees.
"Corrosion has been an ideal client and performed well over the term of the relationship," said Chris
Johnson, President and CEO of Crown. "We were proud to be part of this chapter for Corrosion and wish them continued
success."
"Crown was an excellent capital provider for Corrosion," said Dean Rookes, President of
Corrosion. "They really understood our company and its specific requirements and were supportive partners in our business,
allowing us to execute on our plans without diluting capital."
The Corrosion loan was held by special situations funds managed by Crown in which Crown holds an ownership interest of
approximately 54%. Crown has no further participation in Corrosion and the realized IRR on the loan was approximately 25%.
ABOUT CROWN
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.
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 in this news release include, but are not limited to, statements,
management's beliefs, expectations or intentions regarding the alternative financial market and the general economy, transaction
pipeline, Crown's business plans and strategy, including anticipated capital deployments, and Crown's future cash flow and
shareholder value. 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 the AIF for a detailed
discussion of the risk factors affecting Crown. In addition, Crown's dividend policy will be reviewed from time to time in the
context of the Corporation's earnings, financial requirements for its operations, and other relevant factors and the declaration
of a dividend will always be at the discretion of the board of directors of the Corporation. 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.
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