Crown Capital Partners Completes $10 Million Long-Term Loan with WireIE

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Crown Capital Partners Completes $10 Million Long-Term Loan with WireIE

Canada NewsWire

CALGARY, May 23, 2018 /CNW/ - Crown Capital Partners Inc. ("Crown") (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the closing of a $10 million long-term loan (the "Agreement") to WireIE (Canada) Inc. ("WireIE"), an Ontario-based Canadian network operator that specializes in the deployment and management of carrier-grade data networks across Canada and internationally to under-served communities in rural and remote areas. WireIE builds, owns, and operates the data networks for its blue-chip customers in the telecom carrier, oil and gas, utility, and government industries.

Founded in 2007, WireIE's core value proposition is to provide large telecom carriers with the ability to deliver high quality network services to their commercial customers in rural or remote areas without having to build and manage circuits. WireIE has partnerships with Canada's leading national carriers. The company's services address a large and growing market, with recent US and Canadian government legislation mandating high-speed broadband as an essential service. The new minimum service standards recently defined by the Canadian Radio-television and Telecommunications authority result in greater than 20% of the population falling below the minimum requirements.

"We're pleased to support WireIE as they build out their network to capitalize on the opportunity created by increasing customer demand and the new minimum service standards implemented by the CRTC," said Chris Johnson, Crown's President & CEO. "WireIE has established strong relationships with blue-chip national customers, providing high-quality cash flow and significant revenue visibility, which created an attractive and unique opportunity to structure this transaction as an income streaming facility."

"Crown customized a financing solution that provides us with the flexibility to accelerate our expansion, and we look forward to working with their team as we continue to build our base of recurring revenue," said Rob Barlow, CEO of WireIE. "The market need for our services is expanding and our pipeline of new opportunities is robust."

The Agreement, which is structured as an income streaming facility, provides for  an investment of up to $10 million, which will be funded as a long-term loan on Crown's balance sheet. The term loan bears a fixed interest rate, matures in 10 years, and includes the issue of warrants to Crown.

ABOUT CROWN

Crown (TSX: CRWN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies. 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 using 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 outlook and future performance of WireIE. 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 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.

View original content: http://www.newswire.ca/en/releases/archive/May2018/23/c4147.html

Copyright CNW Group 2018

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