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Duke Royalty signs letter of intent for its fifth loan – Duke Royalty (DUKE) has signed a letter of intent with a US provider / publisher of legal information for US$ 3.5m.
Royalty financing is an alternative to regular debt financing (loans and trade credit) and equity financing (venture capital and stock sales). Duke Royalty provides alternative financing to a diversified range of profitable, well-managed businesses. The company’s objective is to generate predictable, stable cash flows from the company partners to allow the Duke to provide an attractive, yet stable, yield as well as liquidity to shareholders.
The publishing company is referred to by Duke as “PartnerCo” in its announcement. PartnerCo’s publications include enforcement manuals, code books and field guides that highlight legislative changes and guidelines. Its mission is to help the law enforcement community be more efficient by providing them easy access to the latest laws, rules, and regulations and by equipping them with the tools to educate and train officers, management, the courts and the citizens.
The investment opportunity meets all of Duke’s stated criteria:
This investment opportunity is well advanced but still subject to final due diligence and definitive documentation.
The letter of intent also includes the terms to scale up Duke’s investment up to US$7.0m. PartnerCo has additional acquisition targets which Duke has agreed to finance through subsequent tranches on the same terms, subject to PartnerCo maintaining Duke’s investment criteria post-acquisition.
Duke has secured a loan of £3.5m from a non-related third party to cover the loan to the PartnerCo. The summary terms of this loan are:
DUKE : Duke Royalty signs letter of intent for its fifth loan
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