Business
Refinance and Upsize of Credit Facility
Refinance and Upsize of Credit Facility.
About this update from Duke Capital Limited
[{"type":"text","content":"\n \n \n 12 December 2022\n \n \n \n \n \n \n Duke Royalty Limited\n \n \n \n \n \n \n \n \n (\"Duke Royalty\", \"Duke\" or the \"Company\")\n \n \n \n \n \n \n Refinance and Upsize of Credit Facility to £100 million on\nImproved Terms with Fairfax Financial\n \n \n \n \n \n \n \n \n Duke Royalty, a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and North America\n , is pleased to announce that it has entered into a new £100 million credit facility agreement (the \"New Credit Facility\") with Fairfax Financial Holdings Limited and certain of its subsidiaries (\"Fairfax\").\n \n \n \n \n \n The material terms of the New Credit Facility are as follows:\n \n \n \n \n \n · \n Term facility of up to £100 million to replace Duke's existing £55 million term and revolving facilities\n \n \n · \n Five-year term, expiring in January 2028 with a bullet repayment on expiry and no amortisation payments during the five-year term\n \n \n · \n Interest rate equal to SONIA plus 5.00% per annum, which represents an improvement of 225bps on Duke's existing rate of SONIA plus 7.25%\n \n \n · \n As part of the deal, Duke will issue 41,615,134 warrants to Fairfax with a five-year maturity and strike price of 45 pence reflecting the strategic nature of the deal\n \n \n ·\n Initial drawdown of the New Credit Facility expected to occur in mid/late January 2023 coinciding with the expiry of the non-call period enshrined in Duke's existing credit facilities\n \n \n \n \n \n The New Credit Facility will provide Duke with a significant amount of additional liquidity and will push out the Company's requirement for additional equity capital. Furthermore, the New Credit Facility comes at a lower cost to the Company's existing credit facility thereby having an immediate and material impact on the free cash flow of the Company.\n \n \n \n \n \n \n Neil Johnson, CEO of Duke Royalty, said:\n \n \n \n \n \n \n \"I am delighted to announce this upsized credit facility with Fairfax on improved terms for Duke shareholders. Fairfax is an internationally recognised and well respected company. Both Duke and Fairfax have similar philosophies of investing...