Business
Modification of Partners' Agreements - Amendment
Modification of Partners' Agreements - Amendment.
About this update from Duke Capital Limited
[{"type":"text","content":"\n \nRNS Number : 9960Y Duke Royalty Limited 14 May 2019 \n\n \n \nThe following amendments have been made to RNS number 8869Y, entitled 'Modification of Terms with Recently Acquired Royalty Partners', which was released at 7.00 a.m. on 14 May 2019.\n \nThe date for the deferred consideration to be paid to Capital Step, subject to the achievement of 'performance related milestones', is 31 March 2020. All other details remain the same. The full amended text is shown below.\n \n14 May 2019\n \nDuke Royalty Limited\n(\"Duke Royalty\", \"Duke\" or the \"Company\")\nModification of Terms with Recently Acquired Royalty Partners\n \nDuke 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 modifications to the terms of the following agreements which will increase near term revenues for the Company.\n \nThe Company has reached agreements with royalty partners Welltel (Ireland) Limited (\"Welltel\"), a telecommunications services company, media company Pearl & Dean Cinemas Limited (\"the Pearl & Dean Group\"), and Xtremepush Limited (\"Xtremepush\"), a technology solutions company, all of which were acquired via the recent Capital Step acquisition, to modify the terms of existing agreements. This is expected to increase gross revenues to Duke by at least £3.7 million in aggregate over the next five years.\n \nCapital Step was acquired by Duke Royalty in February 2019, prior to which it offered a 'unitranche' solution, which is a perpetual royalty paired with a senior secured loan, which amortises over a three to five year term. Pursuant to the existing arrangements with these three royalty partners, a total of £5.5 million of capital deployed amongst them was due to begin repayments in various instalments starting from December 2018, with the entire £5.5 million of capital expected to be repaid by 31 March 2022.\n \nModifications of terms have now been agreed; for Welltel and Xtremepush, the maturity dates of the senior loan facilities have been extended until 30 April 2024, when the full repayment of principal will be due. For the Pearl and Dean Group, the original agreement saw half of the royalty amortising over three years, and the ...