Duke Royalty Announces New Royalty Agreement with Glass Provider

31 July 2023

Duke Royalty Limited

("Duke Royalty" or "Duke")

New Royalty Agreement with Full-Service, Custom Glass Provider

Duke Royalty, a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and North America, is pleased to announce that it has entered into an US$11.5 million royalty financing agreement (the "Financing") with Glasshouse Products, LLC ("Glasshouse"), further diversifying Duke's revenue base.

Highlights:

·     Founded in 2002 in Texas, Glasshouse is a long-established provider of custom glass solutions including the design, fabrication, sale and installation of glass architectural products

·      Glasshouse has long-standing customer relationships spanning the high-end residential and commercial real estate end-markets

·     Glasshouse has operated as a division of a public company; with the support of Duke's financing, a management buyout of Glasshouse from its parent company has been successfully executed, transitioning equity control of the business to the current President, Royce King, who is the son of Glasshouse's founder and has been actively involved with the firm since 2002

·        Glasshouse is Duke's 21^st royalty partner since inception and, post buyouts, increases the number of current royalty partners to 15

·        The Financing is on typical Duke terms: 30-year secured financing, monthly cash payments starting at the typical range, distributions commencing immediately and to be adjusted annually based on Glasshouse's year-over-year consolidated revenue performance

Neil Johnson, CEO of Duke Royalty, said:

"Glasshouse's long-standing presence and reputation in the Texas market is rooted in its ability to act as a one-stop-shop for glass solutions to the real estate markets, offering high-quality products with exceptional customer service. Given the industry's promising prospects and the region's favourable tailwinds, we believe the company is well positioned for continued success. Duke is excited to be partnering with Royce to take ownership of this successful business originally founded by his father, and to support the company's long-term growth plans."

Royce King, President of Glasshouse, said:

"The long-term, light amortising and flexible nature of Duke's investment solution, in tandem with its ongoing partnership, is a great fit for Glasshouse. We are excited about the partnership with Duke and look forward to embarking on the next stage of our growth."

Further information regarding Glasshouse           

Glasshouse collaborates closely with contractors, interior designers, and homeowners, catering to diverse customer end-markets. Glasshouse tailors its products to precisely match each project's specifications, while ensuring that a high-quality product is delivered on-time.

Glasshouse offers a vast suite of glass products, which includes outdoor architectural glazing and glass, staircases, glass walls, shelves, furniture, shower doors, mirrors and decorative glass. With over 20 years of experience, Glasshouse is headquartered in Dallas, Texas, and operates predominantly in the Dallas-Fort Worth and Austin markets, with an additional facility in Round Rock, Texas serving the Austin market.

About the Financing

Duke's investment into Glasshouse facilitates a management buyout of the business and comprises a US$11.5 million royalty financing investment plus a minority equity investment representing a 9.9% ownership stake. Duke is backing the current day-to-day management team led by Royce King, President, in executing on its next phase of growth.

The terms of the Financing are in line with Duke's typical investment criteria. The Financing is provided through a secured loan whereby Duke will be entitled to monthly distributions (the "Distribution") beginning in August 2023.

In line with Duke's other investments, and reflective of the participating nature of Duke's business model, the Distribution will be adjusted annually based on the percentage change in revenue of the Company for the 12 months to 31 December 2023, compared to the prior financial year. The first adjustment will occur from 1 August 2024. The annual adjustment in the Distribution will be subject to an agreed collar.

The Financing is for a period of 30 years, with the Distribution payable to Duke throughout the duration of this term, unless Glasshouse utilises an early buyback option which will trigger an early buyout payment to Duke.

Duke Royalty Portfolio

A full list of Duke's current Royalty Partners is included for reference on the Partners page of our website: https://www.dukeroyalty.com/partners

***ENDS***

For further information, please visit www.dukeroyalty.com or contact:

About Duke Royalty

Duke Royalty Limited provides alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad. Duke Royalty's experienced team provide financing solutions to private companies that are in need of capital but whose owners wish to maintain equity control of their business. Duke Royalty's royalty investments are intended to provide robust, stable, long term returns to its shareholders. Duke Royalty is listed on the AIM market under the ticker DUKE and is headquartered in Guernsey.

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