TIDMDUKE
RNS Number : 5682H
Duke Royalty Limited
25 November 2022
25 November 2022
Duke Royalty Limited
("Duke Royalty" or "Duke")
New Royalty Agreement with Fire and Security Services
Business
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 a GBP5.0 million royalty financing agreement (the
"Financing") with New Path Fire and Security Limited ("New Path"),
further diversifying Duke's revenue base.
New Path has to date executed a buy and build strategy of
synergistic companies within the fire and security services sector
in the United Kingdom.
Highlights:
-- New Path has completed seven acquisitions of long-standing,
profitable companies which have operated an average of 20 years,
geographically spread across southern England
-- New Path's underlying businesses have good visibility of
revenue, with a significant recurring portion and highly
predictable maintenance income across a very broad customer
base
-- Duke's initial GBP5.0 million royalty financing will be used
to acquire two complementary businesses under exclusivity and
refinance the existing senior debt in the business, with attractive
pro forma credit metrics
-- Duke has agreed a total funding commitment of up to GBP20
million to support New Path's buy-and-build strategy to acquire
profitable fire and securities services businesses across the
UK
-- Agreement on typical Duke terms: 30-year secured financing,
monthly cash payments starting in typical range, distributions
commence immediately and to be adjusted annually to reflect New
Path's consolidated revenue growth
-- Duke will also become a 15% equity shareholder in New Path,
building strong alignment with our Royalty Partner
Neil Johnson, CEO of Duke Royalty, said:
"Duke is excited to be partnering with New Path Fire and
Security to support their buy and build strategy. The fire and
security sector is both admirable in its principal cause to protect
assets and lives, as well as highly attractive with regards to its
antirecessionary attributes. New Path has acquired a group of
quality operating businesses and we look forward to helping them to
continue consolidating a mission-critical sector."
Andrew Hill, CEO of New Path Fire and Security, said:
"Duke is an ideal partner and shareholder for us at this point
in our life cycle. Their capital will allow us to assert ourselves
in a sector that we understand well and to gain scale via
acquisition. We are excited about the opportunities that lie ahead
and to work with the Duke team to achieve our strategic
objectives."
Further information regarding New Path Fire and Security
New Path Fire and Security is a growing and acquisitive
platform, buying independent regional fire safety and security
companies throughout southern England. New Path predominantly
serves business customers, helping them to protect their premises,
assets, and most importantly their people.
New Path group companies cover all aspects of fire safety,
including the installation, maintenance, and servicing of fire
alarms, extinguishers, and emergency lighting and their security
services extend to CCTV, access control, intruder alarms, door
entry systems and beyond. New Path's growing raft of competencies
also allows it to undertake ancillary electrical works required,
giving customers a hassle-free single point of contact.
About the Financing
Duke has committed GBP5.5 million of total capital (GBP5.0
million of royalty financing and GBP0.5 million of equity capital)
to enable New Path's acquisition of two new targets and the
refinancing of the company's existing senior debt. Duke and New
Path have agreed in principle to increase Duke's investment in
future tranches of capital up to GBP20 million and New Path's
stated acquisition criteria align extremely closely with Duke's
own.
The terms of the Financing are in line with Duke's typical
investment criteria. The Financing is provided through a
combination of a secured loan and preference shares and Duke will
be entitled to monthly distributions (the "Distribution") beginning
in December 2022.
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 total
combined gross revenues of the Group for the 12 months to 31
December 2023, compared to the prior financial (calendar) year. The
first adjustment will occur from December 2023. 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 New
Path 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:
www.dukeroyalty.com/partners
***ENDS***
For further information, please visit www.dukeroyalty.com or
contact:
Neil Johnson / Charles
Cannon Brookes / Hugo
Duke Royalty Limited Evans +44 (0) 1481 730 613
Cenkos Securities Stephen Keys / Callum
plc Davidson
(Nominated Adviser Julian Morse / Michael
and Joint Broker) Johnson +44 (0) 207 397 8900
Canaccord Genuity
(Joint Broker) Adam James / Harry Rees +44 (0) 207 523 8000
SEC Newgate (PR) Elisabeth Cowell / + +44 (0) 20 3757 6880
Axaule Shukanayeva 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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END
AGRUSOURUAUAUUA
(END) Dow Jones Newswires
November 25, 2022 02:00 ET (07:00 GMT)
Duke Capital (AQSE:DUKE.GB)
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から 3 2025 まで 4 2025
Duke Capital (AQSE:DUKE.GB)
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