Duke Capital Limited (LON:DUKE), a leading provider of hybrid capital solutions for SME business owners in Europe and North America, has announced a follow-on investment of £2.9 million into its existing capital partner, Step Investments Limited. This investment will enable Step to acquire existing loan notes and increase its equity shareholding in Bay Broadcasting Limited through the buyout of certain minority investors.
Step is a diversified investment group, with core interests in the education, cinema advertising, outdoor digital advertising and radio station sectors across the UK and Ireland. The Step group includes Pearl and Dean Cinemas Limited (P&D UK), Pearl and Dean Ireland (P&D Ireland), Wide Eye Media (WEM), City Education & Learning Group Limited (City Colleges) and Adtower Limited (Adtower).
Highlights:
· Duke’s funds have been used by Step to increase Step’s shareholding from 34% to a 75% controlling stake in the Dublin-based Group, Bay, which operates three longstanding and profitable radio stations.
· Additionally, Step will refinance loan notes at Bay on favourable terms, enhancing Step’s security package.
· The financing increases Duke’s total investment in Step to £11.5 million. The investment terms are in line Duke’s typical cost of capital, including the +/- 6% annual revenue adjustment factor in respect of payments due.
· Duke has supported Step for over six years with various forms of follow-on capital and the enlarged group now has substantial operations across the UK and Ireland with more than 400 employees.
About Bay Broadcasting Limited
Bay is a Holding Company with interests in three profitable, popular Irish radio stations, namely Choice Broadcasting T/A Irelands Classic Hits, Classic Rock Broadcasting T/A Radio Nova (“Radio Nova”) and Star Broadcasting T/A Sunshine 106.8 (“Sunshine 106.8”). Sunshine 106.8 and Radio Nova are ranked as the 2nd and 3rd most popular radio stations in Dublin, respectively. The radio stations offer a wide mix of music with growing levels of listenership across each station.
Neil Johnson, Duke Capital CEO said:
“We are pleased to continue our longstanding partnership with Step through this strategic transaction which adds additional, stable profitability to the group, and enhances Duke’s senior security position. Since 2018, Step has continued to diversify its operations while adding profitable companies to the group, which is a typical use of proceeds for Duke’s long term patient capital.”
Mike Ormonde, Step CEO said:
“Duke’s long-term investment solution continues to be a great fit for Step, and we are grateful for their support over the past six years. Their capital has been instrumental in facilitating multiple opportunistic transactions and has allowed us to grow our platform while removing refinancing risk.”
Duke Capital Portfolio
A full list of Duke’s current partners is included for reference on the Partners page of the Company’s website: www.dukecapital.com/partners.
