Crown Capital Partners, which provides growth capital to mid-market companies, closed a $30 million special situations term loan with Marquee Energy.
Marquee is a Calgary, AB-based company engaged in the acquisition, exploration, development and production of petroleum and natural gas reserves focused in western Canada.
Crown’s capital will be used to repay an existing senior debt facility and to fund Marquee’s capital program.
“We are pleased to support Marquee as it executes on a low-risk development plan in a proven region,” said Chris Johnson, Crown’s president and CEO. “Marquee has a significant asset base and is led by a highly experienced team. This additional capital will enable them to increase production, cash flow and create substantial value.”
The agreement provides for a $30 million term loan to Marquee by Crown Capital Fund IV, an investment fund managed by Crown and in which Crown holds a 35% interest. The term loan bears a fixed interest rate of 10% per annum, matures in 60 months, and includes warrants to acquire 37.5 million common shares of Marquee, exercisable at $0.11 per share.
Crown is a specialty finance company focused on providing capital to Canadian and select U.S. companies that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds.