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Duke Royalty enters into £9m royalty financing agreement with Trimite Global Coatings

By BFN News | 09:42 AM | Monday 05 March, 2018

Duke Royalty said Monday that it has entered into a £9m royalty financing agreement with Trimite Global Coatings Limited. The injection of financing will provide Trimite with the necessary funds to buy-out a minority shareholder, to fund a small bolt-on acquisition and to provide the additional working capital required to fund its anticipated future organic sales growth. The financing was provided through a secured loan and preference shares and Duke will be entitled to monthly distributions beginning in March 2018. On an annual basis, the initial distribution is expected to total approximately £1.2m, equating to a cash-on-cash yield of over 13%. Trimite is a key supplier of industrial coatings to several global brands and organisations in sectors including defence and aerospace, agricultural and construction equipment, and automotive. Duke Royalty also announced that it has entered into non-binding terms with a fourth Royalty Partner, a UK-based glass processing business. The terms of the deal includes senior security, an over 13% initial cash-on-cash yield, an annual adjustment factor based on revenue performance, and a 30-year term. Neil Johnson, CEO of Duke Royalty, said: 'We have been working closely with Trimite for some time to execute this Financing. With a solid sales pipeline and a high-quality management team who are also investing their capital in the business, we feel that Trimite represents a textbook deal for Duke.' 'In addition, we are pleased with the progress we are experiencing in terms of our future pipeline of deal opportunities and are confident that royalty financing will become increasingly understood as a highly competitive form of growth capital across our preferred sectors.' Story provided by

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