REG - Duke Royalty Limited - New Royalty Agreement

Duke CapitalAnnouncement

31/07/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230731:nRSe6404Ha&default-theme=true

RNS Number : 6404H  Duke Royalty Limited  31 July 2023

31 July 2023

 

Duke Royalty Limited

 

("Duke Royalty" or "Duke")

 

New Royalty Agreement with Full-Service, Custom Glass Provider

Duke Royalty, a provider of alternative capital solutions to a diversified
range of profitable and long-established businesses in Europe and North
America, is pleased to announce that it has entered into an US$11.5 million
royalty financing agreement (the "Financing") with Glasshouse Products, LLC
("Glasshouse"), further diversifying Duke's revenue base.

Highlights:

 

·     Founded in 2002 in Texas, Glasshouse is a long-established provider
of custom glass solutions including the design, fabrication, sale and
installation of glass architectural products

·      Glasshouse has long-standing customer relationships spanning the
high-end residential and commercial real estate end-markets

·     Glasshouse has operated as a division of a public company; with the
support of Duke's financing, a management buyout of Glasshouse from its parent
company has been successfully executed, transitioning equity control of the
business to the current President, Royce King, who is the son of Glasshouse's
founder and has been actively involved with the firm since 2002

·        Glasshouse is Duke's 21(st) royalty partner since inception
and, post buyouts, increases the number of current royalty partners to 15

·        The Financing is on typical Duke terms: 30-year secured
financing, monthly cash payments starting at the typical range, distributions
commencing immediately and to be adjusted annually based on Glasshouse's
year-over-year consolidated revenue performance

 

Neil Johnson, CEO of Duke Royalty, said:

"Glasshouse's long-standing presence and reputation in the Texas market is
rooted in its ability to act as a one-stop-shop for glass solutions to the
real estate markets, offering high-quality products with exceptional customer
service. Given the industry's promising prospects and the region's favourable
tailwinds, we believe the company is well positioned for continued success.
Duke is excited to be partnering with Royce to take ownership of this
successful business originally founded by his father, and to support the
company's long-term growth plans."

Royce King, President of Glasshouse, said:

 

"The long-term, light amortising and flexible nature of Duke's investment
solution, in tandem with its ongoing partnership, is a great fit for
Glasshouse. We are excited about the partnership with Duke and look forward to
embarking on the next stage of our growth."

 

Further information regarding Glasshouse

Glasshouse collaborates closely with contractors, interior designers, and
homeowners, catering to diverse customer end-markets. Glasshouse tailors its
products to precisely match each project's specifications, while ensuring that
a high-quality product is delivered on-time.

Glasshouse offers a vast suite of glass products, which includes outdoor
architectural glazing and glass, staircases, glass walls, shelves, furniture,
shower doors, mirrors and decorative glass. With over 20 years of experience,
Glasshouse is headquartered in Dallas, Texas, and operates predominantly in
the Dallas-Fort Worth and Austin markets, with an additional facility in Round
Rock, Texas serving the Austin market.

About the Financing

 

Duke's investment into Glasshouse facilitates a management buyout of the
business and comprises a US$11.5 million royalty financing investment plus a
minority equity investment representing a 9.9% ownership stake. Duke is
backing the current day-to-day management team led by Royce King, President,
in executing on its next phase of growth.

 

The terms of the Financing are in line with Duke's typical investment
criteria. The Financing is provided through a secured loan whereby Duke will
be entitled to monthly distributions (the "Distribution") beginning in August
2023.

 

In line with Duke's other investments, and reflective of the participating
nature of Duke's business model, the Distribution will be adjusted annually
based on the percentage change in revenue of the Company for the 12 months to
31 December 2023, compared to the prior financial year. The first adjustment
will occur from 1 August 2024. The annual adjustment in the Distribution will
be subject to an agreed collar.

 

The Financing is for a period of 30 years, with the Distribution payable to
Duke throughout the duration of this term, unless Glasshouse utilises an early
buyback option which will trigger an early buyout payment to Duke.

Duke Royalty Portfolio

A full list of Duke's current Royalty Partners is included for reference on
the Partners page of our website: https://www.dukeroyalty.com/partners
(https://www.dukeroyalty.com/partners)

 

 

***ENDS***

 

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

 

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

 Cenkos Securities plc    Stephen Keys / Callum Davidson                      +44 (0) 207 397 8900

 (Nominated Adviser       / Michael Johnson

 and Joint Broker)

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

 (Joint Broker)

 SEC Newgate (PR)         Elisabeth Cowell / Alice Cho / Matthew Elliott      + +44 (0) 20 3757 6882 dukeroyalty@secnewgate.co.uk
                                                                              (mailto:dukeroyalty@secnewgate.co.uk)

 

 

About Duke Royalty

 

Duke Royalty Limited provides alternative capital solutions to a diversified
range of profitable and long-established businesses in Europe and abroad.
Duke Royalty's experienced team provide financing solutions to private
companies that are in need of capital but whose owners wish to maintain equity
control of their business. Duke Royalty's royalty investments are intended to
provide robust, stable, long term returns to its shareholders. Duke Royalty is
listed on the AIM market under the ticker DUKE and is headquartered
in Guernsey.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRURANROAUBOAR