22 July 2024
Duke Capital
Limited
("Duke
Capital", "Duke" or the "Company")
Follow-On Investment into
Step Investments Limited
Duke Capital Limited (AIM: DUKE), a
leading provider of hybrid capital solutions for SME business
owners in Europe and North America, is pleased to
announce a follow-on investment of £2.9
million into its existing capital partner, Step Investments Limited
("Step"). This investment will enable Step to acquire existing loan
notes and increase its equity shareholding in Bay
Broadcasting Limited ("Bay") through the buyout of certain minority
investors.
Step is a diversified investment
group, with core interests in the education, cinema advertising,
outdoor digital advertising and radio station sectors across the UK
and Ireland. The Step group includes Pearl
and Dean Cinemas Limited ("P&D UK"), Pearl and Dean Ireland
("P&D Ireland"), Wide Eye Media ("WEM"), City Education &
Learning Group Limited ("City Colleges") and Adtower Limited
("Adtower").
Highlights:
· Duke's funds have been used by Step to increase Step's
shareholding from 34% to a 75% controlling
stake in the Dublin-based Group, Bay, which
operates three longstanding and profitable radio
stations.
· Additionally, Step will refinance loan notes at Bay on
favourable terms, enhancing Step's security package.
· The financing increases Duke's total investment in Step to
£11.5 million. The investment terms are in line Duke's typical cost
of capital, including the +/- 6% annual revenue adjustment factor
in respect of payments due.
· Duke has supported Step for over six years with various forms
of follow-on capital and the enlarged group now has substantial
operations across the UK and Ireland with more than 400
employees.
About Bay Broadcasting Limited
Bay is a Holding Company with
interests in three profitable, popular Irish radio stations, namely
Choice Broadcasting T/A Irelands Classic Hits, Classic Rock
Broadcasting T/A Radio Nova ("Radio Nova") and Star Broadcasting
T/A Sunshine 106.8 ("Sunshine 106.8"). Sunshine 106.8 and Radio
Nova are ranked as the 2nd and 3rd most
popular radio stations in Dublin, respectively. The radio stations
offer a wide mix of music with growing levels of listenership
across each station.
Neil Johnson, Duke Capital CEO said:
"We are pleased to continue our
longstanding partnership with Step through this strategic
transaction which adds additional, stable profitability to the
group, and enhances Duke's senior security position. Since 2018,
Step has continued to diversify its operations while adding
profitable companies to the group, which is a typical use of
proceeds for Duke's long term patient capital."
Mike Ormonde, Step CEO said:
"Duke's long-term investment
solution continues to be a great fit for Step, and we are grateful
for their support over the past six years. Their capital has been
instrumental in facilitating multiple opportunistic transactions
and has allowed us to grow our platform while removing refinancing
risk."
Duke Capital Portfolio
A full list of Duke's current
partners is included for reference on the Partners page of the
Company's website: www.dukecapital.com/partners.
***ENDS***
For
further information, please visit www.dukecapital.com
or
contact:
Duke Capital Limited
|
Neil Johnson / Charles Cannon
Brookes / Hugo Evans
|
+44 (0)
1481 231 816
|
Cavendish Capital Markets Limited
(Nominated Adviser and Joint Broker)
|
Stephen Keys / Callum Davidson /
Michael Johnson
|
+44 (0)
207 220 0500
|
|
|
|
Canaccord Genuity Limited
(Joint Broker)
|
Adam James / Harry Rees
|
+44 (0)
207 523 8000
|
SEC Newgate (Financial
Communications)
|
Elisabeth Cowell / Alice Cho /
Matthew Elliott
|
+ +44 (0)
20 3757 6882 dukecapital@secnewgate.co.uk
|
About Duke Capital
Duke is a leading provider of hybrid
capital solutions for SME business owners in Europe and North
America, combining the best features of both equity and
debt.
Since 2017, Duke has provided unique
long-term financing which eliminates re-financing risk and
necessity for a short-term exit by providing a unique 'corporate
mortgage' while also aligning its returns to grow with the success
of the business.
Duke is focused on generating
attractive risk-adjusted returns for shareholders and has a track
record of achieving this across market cycles. Its three investment
pillars are capital preservation, attractive dividend yield, and to
provide upside upon exits. Duke is listed on the AIM market under
the ticker DUKE and is headquartered in Guernsey.