Duke Royalty: Raises £32m

31st March 2021

Further to the announcement of 31 March 2021 regarding the proposed placing via accelerated bookbuild (the “Placing Announcement”), the Company is pleased to announce that it has successfully raised £32 million (before expenses) under the Placing, which was significantly oversubscribed.

The net proceeds from the Fundraising are intended to be used together with funds available under the New Credit Facility:

  • to fund investments into two new Royalty Partners we have identified currently in due diligence process;
  • to provide follow on investment into an existing royalty partner for a business acquisition in due diligence process; and
  • to fund the longer-term pipeline of future royalty investments.

Neil Johnson, CEO of Duke Royalty, said:

“We are delighted with the strong institutional support we have received for our plans to increase our cash revenue from new and existing investors, which will position us to build on our expanding pipeline we are experiencing in the first quarter of calendar 2021.

“Over recent months, we have been focused on executing on the exciting growth opportunity presented to us by the pandemic, undertaking due diligence on a significant number of businesses which have enquired about our capital solution as part of their search for more flexible, long-term sources of capital. We have already identified two new potential royalty partners, both of which have resilient, long-standing, profitable operations with buy-and-build strategies. The Fundraising means that we can execute on these opportunities, while also building our pipeline, in the short term. We will also continue our role as a supportive partner to our existing royalty partners, by way of an identified near term follow-on investment.

” Total cash revenue for FY2021 is expected to see an increase year-on-year despite the Covid downturn and the board remains confident that trading for the full year ending 31 March 2021 was in line with market guidance. T his fundraise is intended to fuel further growth and diversification, adding to the high yielding dividend we already provide our investors with exposure to. With this in mind, we are delighted to invite other investors to participate alongside institutions through the PrimaryBid Offer. We look forward to the months ahead where we can outline our deal flow more firmly to the market.”

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