REG - Duke Royalty Limited - Increased £35 Million Revolving Credit Facility

Duke CapitalAnnouncement

15/03/2021 07:05

RNS Number : 1809S
  
Duke Royalty Limited
  
15 March 2021
  
 

15 March 2021
 
Duke Royalty Limited
 
("Duke Royalty", "Duke" or the "Company")
 
Increased £35 Million Revolving Credit Facility
 
Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad, is pleased to announce that it has increased and extended its revolving facility agreement with Honeycomb Investment Trust PLC ("Honeycomb" and the facility "New Credit Facility"), a credit fund with Pollen Street Capital as Investment Manager.
The New Credit Facility enables the Company to capitalise on the significant opportunity available to add new royalty partners looking for long-term, flexible alternative capital since the start of the pandemic. The material changes in terms relating to the New Credit Facility are as follows:
·    Increased revolving credit facility of £35 million, from the current level of £30 million, to support Duke's growing pipeline of new deployments
·    Extended five-year term, expiring in February 2026, from the current maturity of September 2024
·    Interest rate remains at one-month LIBOR plus 7.25% per annum
·    Uncommitted accordion facility - subject to maintenance of a loan to value threshold, the New Credit Facility could increase to £55 million
 
The net debt position of the Company is currently £15.3 million 
 
Neil Johnson, CEO of Duke Royalty, said:
 
"We are pleased that Honeycomb has given their further support to Duke's team and our business model with the New Credit Facility. Through a turbulent 2020, Honeycomb were supportive of Duke and, by extension, our royalty partners. We look forward to diversifying our portfolio through new deployments and the increased facility gives Duke the extended runway to build revenue and cash flow per share.
 
"We have proven ourselves to be a resilient, flexible provider of capital to businesses with long term growth prospects and we look forward to keeping the market updated as the range of deployment discussions currently underway with new and existing partners come to fruition."
 
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For further information, please visit www.dukeroyalty.com or contact:
 



Duke Royalty Limited


Neil Johnson / Charlie Cannon Brookes / Hugo Evans
 
 


+44 (0) 1481 741 240




Cenkos Securities plc 
(Nominated Adviser 
and Joint Broker)
 


Stephen Keys / Callum Davidson / Julian Morse / Michael Johnson
 


+44 (0) 207 397 8900
 


















Canaccord Genuity
(Joint Broker)
 


Adam James / Georgina McCooke


+44 (0) 207 523 8000




SEC Newgate (PR)


Elisabeth Cowell/ Tom Carnegie/ Megan Kovach


+ +44 (0) 20 3757 6880 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.
 
 

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