(Alliance News) - Duke Royalty Ltd on Monday said it has paid down the entire outstanding balance of a revolving credit facility following a fundraising.
The royalty financing firm said it has paid the remaining GBP11.7 million, which it added was a key commitment of its recent fundraising strategy.
On Wednesday, Duke said it has raised total gross proceeds of GBP17.5 million, after securing an additional GBP892,287 via share open offer. The company previously had outlined plans to raise GBP20 million through a placing, retail offer, and open offer of shares priced at 44.00 pence each.
Duke Royalty share were 0.5% higher at 44.20 pence each in London on Monday morning.
Duke added: "The company's new credit facility of GBP30 million, provided by Honeycomb Investment Trust PLC, enables Duke to benefit from material annual interest savings."
It said the new interest rate will be one-month UK LIBOR plus 7.25 percentage points, previously 9.5 points.
"When utilising the accordion provision, the new credit facility provides the company with material additional headroom of a further GBP20 million, enabling access to total capital of up to GBP50 million under the facility, subject to loan thresholds," Duke said.
By Eric Cunha; ericcunha@alliancenews.com
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Duke Capital (DUKE)