Crown Capital Announces Deferral of Interest Payment to Debenture Holders

CALGARY, AB, Dec. 22, 2025 /CNW/ - Crown Capital Partners Inc. ("Crown" or the "Corporation") (TSX: CRWN) today announced that it is deferring the scheduled interest payment of $3.2 million due on December 31, 2025 (the "Interest Payment") in respect of the 11% secured subordinated debentures of the Corporation (the "Debentures") for the interest accrued on the Debentures from June 30, 2024 up to, but excluding, December 31, 2025.  There are $20.0 million principal amount of Debentures issued and outstanding and they mature on December 31, 2026. The Debentures trade on the Toronto Stock Exchange under the symbol "CRWN.NT".

Due to current liquidity constraints as well as to constraints imposed by Crown's senior secured credit facility (the "Crown Credit Facility"), in respect of which approximately $17.1 million was outstanding as of December 22, 2025, the Corporation will not be in position to fund the Interest Payment on December 31, 2025. 

The Corporation anticipates funding its payment obligations in respect of the both the Crown Credit Facility and the Interest Payment primarily with proceeds from the disposition of assets.  In light of obligations maturing in the next 12 months, Crown is currently in advanced negotiations with prospective acquirors in respect of the sale of several of its businesses and assets. If completed, these dispositions would provide sufficient liquidity to repay the Crown Credit Facility.

Although action has been taken to accelerate the realization of proceeds from dispositions, there is no assurance that such efforts will be successful, will be achieved on a timely basis, or will raise sufficient funds to satisfy the Corporation's payment obligations in respect of the Crown Credit Facility and the Interest Payment.

The terms of the trust indenture that governs the Debentures provides that non-payment of this interest will not constitute an event of default in respect of the Debentures until 30 days has elapsed beyond the scheduled interest payment date without payment having been made.  While the Corporation is attempting to restore sufficient liquidity to support the funding of the Interest Payment before the applicable cure period ends on January 30, 2025, there is no assurance that such funding will be achieved by this date.   

Effective December 31, 2025, the interest rate on the Debentures will increase from 11% per annum to 12% per annum.

About Crown Capital Partners (TSX:CRWN)

Founded in 2000 within Crown Life Insurance Company, Crown Capital Partners is a capital partner to entrepreneurs and growth businesses mainly operating in the telecommunications infrastructure, distribution services, and distributed power markets. We focus on growth industries that require a specialized capital partner, and we aim to create long-term value by acting as both a direct investor in operating businesses serving these markets and as a manager of investment funds for institutional partners. For additional information, please visit crowncapital.ca.

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 by the use of 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 Corporation's ability to achieve sufficient liquidity to fund repayment of the Crown Credit Facility and interest payments in respect of the Debentures within a specified time frame. 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 most recent annual information form for a detailed discussion of the risk factors affecting Crown. In addition, Crown's dividend policy will be reviewed from time to time in the context of the Corporation's earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the board of directors of the Corporation. 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.

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