(Alliance News) - Duke Royalty Ltd on Tuesday said it has secured a new five-year GBP30 million revolving loan from existing lender Honeycomb Investment Trust PLC on improved terms.
The company, which provides financing to private companies, said the new loan replaces the previous GBP15 million facility agreement, assumed by Duke as part of its acquisition of Capital Step announced in February.
The increased facility, which is due in September 2024, will support Duke in delivering its growth strategy by providing access to additional capital, at a reasonable cost, without relying solely on equity markets, the company said.
The loan bears an interest rate equal to LIBOR plus 7.25% per annum, which represents an improvement of 225 basis points on the previous rate of 9.5%. The loan also has option to increase the lending amount to up to GBP50 million.
Shares in Duke Royalty were trading 0.4% lower at 47.00 pence each on Tuesday.