TIDMDUKE
RNS Number : 0532S
Duke Royalty Limited
07 March 2023
7 March 2023
Duke Royalty Limited
("Duke Royalty" or "Duke")
New Royalty Agreement with Data Centre Infrastructure
Installation 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 an US$8.75 million royalty financing agreement (the
"Financing") with Instor Solutions, Inc. ("Instor" or the
"Company"), further diversifying Duke's revenue base.
Highlights:
-- Founded in 1996 in California, Instor is a long established,
profitable product reseller and service provider for work related
to the build-out and migration of data centres
-- Instor has a diverse and long-standing customer base,
including large technology companies, real estate investment trusts
and other large enterprises
-- Duke's financing will support a shareholder buyout which
transitions equity control of the business to the current executive
management team, led by the CEO who joined Instor in 2014
-- Instor is Duke's 20(th) royalty partner since inception and,
post buyouts, increases the number of current royalty partners to
15
-- Agreement 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 Instor's year-over-year consolidated revenue
performance
Neil Johnson, CEO of Duke Royalty, said:
"Instor has built a strong reputation in the market for its
ability to partner with clients to deliver consistently high
quality work. We feel that the Company is well positioned in an
industry which is experiencing strong tailwinds. Duke is excited to
be partnering with Instor in facilitating the transition of the
ownership of the business to the current executive management team
and in supporting their next phase of growth.
"For our shareholders, we are excited to announce our 20(th)
royalty partner which will, like all our deployments of capital,
immediately result in an increase to Duke's monthly recurring cash
revenues."
Jack Vonich, CEO of Instor, said:
"The partnership approach and flexibility of Duke's investment
solution is a great fit for Instor. While providing liquidity for
the exiting shareholders, Duke's capital provides us with a secure
platform for continued growth. We are excited about our long-term
partnership with Duke which allows the management team to focus on
executing our business plan and longer-term strategic
initiatives."
Further information regarding Instor
Instor collaborates with a diverse range of customers and
provides customised infrastructure solutions that meet the needs of
individual data centres. Instor builds out wholesale colocation,
lab, and data centre spaces from whitespace to operation ready.
Instor's specialised data centre fit up service reduces overall
build time and project costs.
Instor is an industry leader in data centre design, structured
cabling, power infrastructure, and specialised containment and
cooling solutions. With over 25 years of experience, Instor is
headquartered in the San Francisco Bay Area. Instor has complete
North American coverage with regional hubs and capabilities
extending to Europe with a European headquarters based in Dublin,
Ireland.
About the Financing
Duke has invested US$8.75 million into Instor to facilitate a
shareholder buyout of the majority shareholders of the business.
Duke is backing the current day-to-day management team led by Jack
Vonich, CEO, and Sam Prudhomme, 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 March 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 March 2024, compared to the
prior financial year. The first adjustment will occur from 1 April
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 Instor
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
plc Stephen Keys / Callum
(Nominated Adviser Davidson
and Joint Broker) / Michael Johnson +44 (0) 207 397 8900
Canaccord Genuity
(Joint Broker) Adam James / Harry Rees +44 (0) 207 523 8000
SEC Newgate (PR) Elisabeth Cowell / Matthew + +44 (0) 20 3757 6880
Elliott 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 provides
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
AGRSSWFMMEDSEFD
(END) Dow Jones Newswires
March 07, 2023 02:00 ET (07:00 GMT)
Duke Capital (AQSE:DUKE.GB)
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