Crown Capital Partners lends $12M additional funding to Petrowest

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By Ted Liu

Crown Capital Partners Inc. (TSX: CRWN) through Crown Capital Fund IV, LP, an investment fund managed by Crown in which Crown holds a 35% interest, has amended its $15.0 million term loan agreement with Petrowest Corporation (TSX: PRW) and completed a new $12.0 million bridge loan with the company.

The amended $15.0 million term loan bears a fixed interest rate of 12% per annum, compounded and payable monthly, and matures in 36 months. In addition, Crown IV LP will provide a $12.0 million bridge loan, which gives Petrowest additional financial flexibility while it pursues its previously announced non-core asset disposition program. The bridge loan bears interest at 12% per annum and matures on November 30, 2017.

On closing of the bridge loan, Crown syndicated $2.0 million of the loan to one of the limited partners in Crown IV LP.

“We commend Petrowest for taking the difficult but necessary steps to sell non-core assets, reduce debt, and focus on increasing profitability in its core markets,” said Chris Johnson, President and CEO of Crown. “We are pleased to continue to support Petrowest through this transition period as their core business is profitable and well positioned for long-term success.”

As part of the amended term loan, the 4.3 million warrants previously issued to Crown IV LP were cancelled, and 4.3 million common shares of Petrowest were issued to Crown IV LP at nominal cost. The bridge loan agreement also included the issuance of 3 million common shares of Petrowest. In total, Crown IV LP now owns 7.7 million common shares of Petrowest.

Calgary based Petrowest is an Alberta corporation involved in both industrial and civil infrastructure projects, as well as predrilling and post-completion energy services, gravel crushing and hauling for non-energy sector customers. Petrowest’s primary operations are based in northwestern Alberta and northeastern British Columbia.

photo credit: Petrowest Corporation