REG - Duke Capital - Follow-On Investment into Step Investments Limited

Duke CapitalAnnouncement

22/07/2024 07:00

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RNS Number : 1663X  Duke Capital Limited  22 July 2024

22 July 2024

 

Duke Capital Limited

 

("Duke Capital", "Duke" or the "Company")

 

Follow-On Investment into Step Investments Limited

Duke Capital Limited (AIM: DUKE), a leading provider of hybrid capital
solutions for SME business owners in Europe and North America, is pleased to
announce a follow-on investment of £2.9 million into its existing capital
partner, Step Investments Limited ("Step"). This investment will enable Step
to acquire existing loan notes and increase its equity shareholding in Bay
Broadcasting Limited ("Bay") through the buyout of certain minority investors.

Step is a diversified investment group, with core interests in the education,
cinema advertising, outdoor digital advertising and radio station sectors
across the UK and Ireland. The Step group includes Pearl and Dean Cinemas
Limited ("P&D UK"), Pearl and Dean Ireland ("P&D Ireland"), Wide Eye
Media ("WEM"), City Education & Learning Group Limited ("City Colleges")
and Adtower Limited ("Adtower").

 

Highlights:

 

·       Duke's funds have been used by Step to increase Step's
shareholding from 34% to a 75% controlling stake in the Dublin-based Group,
Bay, which operates three longstanding and profitable radio stations.

·       Additionally, Step will refinance loan notes at Bay on
favourable terms, enhancing Step's security package.

·       The financing increases Duke's total investment in Step to
£11.5 million. The investment terms are in line Duke's typical cost of
capital, including the +/- 6% annual revenue adjustment factor in respect of
payments due.

·       Duke has supported Step for over six years with various forms
of follow-on capital and the enlarged group now has substantial operations
across the UK and Ireland with more than 400 employees.

 

About Bay Broadcasting Limited

 

Bay is a Holding Company with interests in three profitable, popular Irish
radio stations, namely Choice Broadcasting T/A Irelands Classic Hits, Classic
Rock Broadcasting T/A Radio Nova ("Radio Nova") and Star Broadcasting T/A
Sunshine 106.8 ("Sunshine 106.8"). Sunshine 106.8 and Radio Nova are ranked as
the 2(nd) and 3(rd) most popular radio stations in Dublin, respectively. The
radio stations offer a wide mix of music with growing levels of listenership
across each station.

 

Neil Johnson, Duke Capital CEO said:

 

"We are pleased to continue our longstanding partnership with Step through
this strategic transaction which adds additional, stable profitability to the
group, and enhances Duke's senior security position. Since 2018, Step has
continued to diversify its operations while adding profitable companies to the
group, which is a typical use of proceeds for Duke's long term patient
capital."

 

 

Mike Ormonde, Step CEO said:

 

"Duke's long-term investment solution continues to be a great fit for Step,
and we are grateful for their support over the past six years. Their capital
has been instrumental in facilitating multiple opportunistic transactions and
has allowed us to grow our platform while removing refinancing risk."

Duke Capital Portfolio

A full list of Duke's current partners is included for reference on the
Partners page of the Company's website: www.dukecapital.com/partners
(http://www.dukecapital.com/partners) .

 

 

***ENDS***

 

For further information, please visit www.dukecapital.com
(http://www.dukecapital.com) or contact:

 

 Duke Capital Limited                                                    Neil Johnson / Charles Cannon Brookes / Hugo Evans  +44 (0) 1481 231 816

 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)  Stephen Keys / Callum Davidson / Michael Johnson    +44 (0) 207 220 0500

 Canaccord Genuity Limited                                               Adam James / Harry Rees                             +44 (0) 207 523 8000

 (Joint Broker)

 SEC Newgate (Financial Communications)                                  Elisabeth Cowell / Alice Cho / Matthew Elliott      + +44 (0) 20 3757 6882 dukecapital@secnewgate.co.uk

 

About Duke Capital

 

Duke is a leading provider of hybrid capital solutions for SME business owners
in Europe and North America, combining the best features of both equity and
debt.

 

Since 2017, Duke has provided unique long-term financing which eliminates
re-financing risk and necessity for a short-term exit by providing a unique
'corporate mortgage' while also aligning its returns to grow with the success
of the business.

 

Duke is focused on generating attractive risk-adjusted returns for
shareholders and has a track record of achieving this across market cycles.
Its three investment pillars are capital preservation, attractive dividend
yield, and to provide upside upon exits. Duke is listed on the AIM market
under the ticker DUKE and is headquartered in Guernsey.

 

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