CPE Media News – pcJournal (9/4/2018) – Crown Capital Partners Inc. (TSX: CRWN) has provided a $15 million term loan to Triple Five Intercontinental Group Ltd., a Calgary based company engaged in the exploration, development and production of petroleum and natural gas.
The $15 million first-lien term loan was made by Crown Capital Partner Funding, LP, an investment fund managed by Crown Capital Partners and in which Crown Capital Partners holds a 37.1% interest. The term loan bears a fixed interest rate of 10.5% per annum, matures in 36 months, and includes a royalty to Crown Partners Fund based on Triple Five’s gross sales.
Founded in 2014, Triple Five’s assets are located in west central Alberta, where the company has a 100% working interest in 20 contiguous sections of land (approximately 12,800 net acres) in the Spirit River zone. Triple Five is currently producing approximately 3,800 barrels of oil equivalent production per day from six wells, of which approximately 85% is natural gas and 15% is natural gas liquids.
New funds will be used to refinance Triple Five’s senior debt facility and provide capital to drill additional wells, which are expected to materially increase the company’s production.
In October 2017, Triple Five Intercontinental Group raised $15 million in debt financing from Tallinn Capital Energy Corp. and Tallinn Capital Mezzanine LP.
photo credit: anita_starzycka via pixabay
News Release
Crown Capital Partners Completes $15 Million Term Loan with Triple Five Intercontinental Group Ltd.
CALGARY, September 4, 2018 – Crown Capital Partners Inc. (“Crown”) (TSX: CRWN), which provides growth capital to successful mid-market companies, today announced the closing of a $15 million term loan (the “Agreement”) to Triple Five Intercontinental Group Ltd. (“Triple Five”), a privately held, Calgary-based company engaged in the exploration, development and production of petroleum and natural gas.
Founded in 2014, Triple Five’s assets are located in west central Alberta, where the company has a 100% working interest in 20 contiguous sections of land (approximately 12,800 net acres) in the Spirit River zone. Triple Five is currently producing approximately 3,800 barrels of oil equivalent production per day from six wells, of which approximately 85% is natural gas and 15% is natural gas liquids. Crown’s funds will be used to refinance Triple Five’s senior debt facility and provide capital to drill additional wells, which are expected to materially increase the company’s production.
“Triple Five has accumulated a highly attractive portfolio of assets in a proven and prolific natural gas region,” said Chris Johnson, Crown’s President & CEO. “The company has established a solid track record of low-cost production, which has resulted in significant cash flow even in a challenging pricing environment. With additional wells coming on stream, the business is positioned to deliver material increases in production and profitability going forward. We look forward to working with the Triple Five team to support their expansion.”
“With a strong background in our industry, Crown was able to provide a customized, non-dilutive lending solution in a timely manner that will enable us to implement our near-term plans to increase production,” said Ryan Martin, President of Triple Five.
The Agreement provides for a $15 million first-lien term loan to Triple Five by Crown Capital Partner Funding, LP (“Crown Partners Fund”), an investment fund managed by Crown and in which Crown holds a 37.1% interest. The term loan bears a fixed interest rate of 10.5% per annum, matures in 36 months, and includes a royalty to Crown Partners Fund based on Triple Five’s gross sales.
About Crown Capital Partners
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.