Duke Royalty boosts near-term revenue – Duke Royalty has secured changes to the terms of three agreements which will increase near term revenues for the company. Royalties from Welltel (Ireland) Limited, a telecommunications services company, media company Pearl & Dean Cinemas Limited, and Xtremepush, a technology solutions company, were all acquired via Duke’s recent Capital Step acquisition. The changes are expected to increase Duke’s gross revenue by at least GBP3.7 million in aggregate over the next five years.
Under the original deal, Duke would have received its capital in instalments, starting from December 2018, with the entire GBP5.5 million of capital expected to be repaid by 31 March 2022.
For Welltel and Xtremepush, the maturity dates of the senior loan facilities have been extended until 30 April 2024, when the full repayment of principal will be due. For the Pearl and Dean Group, the original agreement saw half of the royalty amortising over three years, and the other half as a perpetual term. The parties have agreed to make the entire amount a perpetual royalty, with the return calculated as a fixed percentage of gross revenues, subject to a floor and a cap. All other terms of the agreements remain the same.
By extending the royalty agreement in perpetuity, the actual revenue could exceed £3.7m, depending on future revenue growth of the Pearl & Dean Group.
DUKE : Duke Royalty boosts near-term revenue