Crown Capital Partners invests $10M in Mill Street & Co.

Crown Capital Partners Inc. (TSX: CRWN) has provided a $10 million, 10-year loan to Mill Street & Co. Inc.

Thornhill, Ontario based Mill Street & Co. owns and operates a diverse group of small- to medium-size companies, primarily based in Southern Ontario. Mill Street has ownership positions in nine operating companies in diversified sectors, including construction services, building supply, wholesale & logistics and financial services.

The loan will be funded as a long-term loan on Crown Capital Partners’ balance sheet, not through Crown Capital Fund IV, LP.

The term loan has a floating interest rate based on the five-year Government of Canada Bond yield plus 10% (subject to a minimum of 12%) and includes an equity participation right based on the growth in Mill Street’s equity value per share.

photo credit: Mill Street

News Release

Crown Capital Partners Completes $10 Million Long-Term Loan with Mill Street & Co. Inc.

CALGARY, May 17, 2018 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the closing of a $10 million, 10-year loan (the “Agreement”) with Mill Street & Co. Inc. (“Mill Street”), a Canadian diversified operating company, with small- to medium-size, privately held subsidiaries, primarily based in Southern Ontario.

Mill Street provides successful entrepreneurs with a succession plan and liquidity by acquiring up to 100% of the entrepreneur’s business with the objective of creating value-added growth through a unique performance-based culture. Mill Street has ownership positions in nine operating companies in diversified sectors, including construction services, building supply, wholesale & logistics and financial services.

“Mill Street’s focus on working with entrepreneurs of profitable small- and medium-sized businesses aligns perfectly with our philosophy,” said Chris Johnson, Crown’s President & CEO. “Mill Street has done an excellent job of building a diversified operating platform that generates stable and growing cash flow. We look forward to working with them as they take advantage of the large and growing market need among private businesses for an experienced and reputable succession partner.”

“Crown’s customized, long-term financing solution is well-suited to our needs and will enable us to further capitalize on growth opportunities,” said Noah Murad, President of Mill Street. “We have admired Crown’s established track record and reputation for many years and view the Crown team as an ideal financial partner for our business.”

The Agreement provides for a $10 million, 10-year term loan to Mill Street, which will be funded as a long-term loan on Crown’s balance sheet. The term loan has a floating interest rate based on the five-year Government of Canada Bond yield plus 10% (subject to a minimum of 12%) and includes an equity participation right based on the growth in Mill Street’s equity value per share.

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.


Ted Liu
Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, TechnologyMetals.ca, GoldSilverMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of sophisticated and advanced CPE Media Private Capital Dealbase. Ted is President of CPE Media Inc., Canada's independent, trusted and unbiased data provider tracking Canadian VC/PE, private capital industry and public market.
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