CALGARY,
AB, June 28, 2024 /CNW/ - Crown Capital
Partners Inc. ("Crown" or the "Corporation") (TSX: CRWN) today
announced that it is deferring the scheduled interest payment of
$1.0 million due on June 30, 2024 in respect of the 10% unsecured
subordinated debentures of the Corporation (the
"Debentures"). There are $20.0
million principal amount of Debentures issued and
outstanding and they mature on December 31,
2024. The Debentures trade on the Toronto Stock Exchange
under the symbol "CRWN.NT".
As previously announced, Crown is currently in default of its
senior secured credit facility (the "Crown Credit Facility"), in
respect of which approximately $26.2
million had been advanced as of June
28, 2024. The Crown Credit Facility is subject to
covenant clauses, whereby the Corporation is required to meet
certain key financial ratios. Since September 30, 2023, the Corporation has not
fulfilled the Net Total Debt to Trailing Twelve Month Earnings
before Interest, Taxes, Depreciation and Amortization and Fixed
Charge Coverage Ratio requirements of the Crown Credit
Facility.
Due to current liquidity constraints as well as to constraints
imposed by the Crown Credit Facility, the Corporation will not be
in position to fund the interest payment due on June 30, 2024 in respect of the Debentures.
The terms of the trust indenture that governs the Debentures
provides that non-payment of this interest will not constitute an
event of default in respect of the Debentures until 30 days has
elapsed beyond the scheduled interest payment date without payment
having been made. While the Corporation is attempting to
restore sufficient liquidity to support the funding of this
interest payment before the applicable cure period ends on
July 30, 2024, there is no assurance
that such funding will be achieved by this date.
About Crown Capital Partners (TSX:CRWN)
Founded in 2000 within Crown Life Insurance Company, Crown
Capital Partners is a capital partner to entrepreneurs and growth
businesses mainly operating in the telecommunications
infrastructure, distribution services, and distributed power
markets. We focus on growth industries that require a specialized
capital partner, and we aim to create long-term value by acting as
both a direct investor in operating businesses serving these
markets and as a manager of investment funds for institutional
partners. For additional information, please visit
crowncapital.ca.
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 Corporation's
ability to achieve sufficient liquidity to fund interest payments
in respect of the Debentures within a specified time frame.
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. 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.