TIDMDUKE
RNS Number : 6404H
Duke Royalty Limited
31 July 2023
31 July 2023
Duke Royalty Limited
("Duke Royalty" or "Duke")
New Royalty Agreement with Full-Service, Custom Glass
Provider
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$11.5 million royalty financing agreement (the
"Financing") with Glasshouse Products, LLC ("Glasshouse"), further
diversifying Duke's revenue base.
Highlights:
-- Founded in 2002 in Texas, Glasshouse is a long-established
provider of custom glass solutions including the design,
fabrication, sale and installation of glass architectural
products
-- Glasshouse has long-standing customer relationships spanning
the high-end residential and commercial real estate end-markets
-- Glasshouse has operated as a division of a public company;
with the support of Duke's financing, a management buyout of
Glasshouse from its parent company has been successfully executed,
transitioning equity control of the business to the current
President, Royce King, who is the son of Glasshouse's founder and
has been actively involved with the firm since 2002
-- Glasshouse is Duke's 21(st) royalty partner since inception
and, post buyouts, increases the number of current royalty partners
to 15
-- The Financing 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 Glasshouse's year-over-year consolidated revenue
performance
Neil Johnson, CEO of Duke Royalty, said:
"Glasshouse's long-standing presence and reputation in the Texas
market is rooted in its ability to act as a one-stop-shop for glass
solutions to the real estate markets, offering high-quality
products with exceptional customer service. Given the industry's
promising prospects and the region's favourable tailwinds, we
believe the company is well positioned for continued success. Duke
is excited to be partnering with Royce to take ownership of this
successful business originally founded by his father, and to
support the company's long-term growth plans."
Royce King, President of Glasshouse, said:
"The long-term, light amortising and flexible nature of Duke's
investment solution, in tandem with its ongoing partnership, is a
great fit for Glasshouse. We are excited about the partnership with
Duke and look forward to embarking on the next stage of our
growth."
Further information regarding Glasshouse
Glasshouse collaborates closely with contractors, interior
designers, and homeowners, catering to diverse customer
end-markets. Glasshouse tailors its products to precisely match
each project's specifications, while ensuring that a high-quality
product is delivered on-time.
Glasshouse offers a vast suite of glass products, which includes
outdoor architectural glazing and glass, staircases, glass walls,
shelves, furniture, shower doors, mirrors and decorative glass.
With over 20 years of experience, Glasshouse is headquartered in
Dallas, Texas, and operates predominantly in the Dallas-Fort Worth
and Austin markets, with an additional facility in Round Rock,
Texas serving the Austin market.
About the Financing
Duke's investment into Glasshouse facilitates a management
buyout of the business and comprises a US$11.5 million royalty
financing investment plus a minority equity investment representing
a 9.9% ownership stake. Duke is backing the current day-to-day
management team led by Royce King, 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 August 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 December 2023, compared to
the prior financial year. The first adjustment will occur from 1
August 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
Glasshouse 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:
https://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 231 816
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 / Alice + +44 (0) 20 3757 6882
Cho / Matthew 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 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
AGRURANROAUBOAR
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