LONDON (ShareCast) - (Sharecast News) - Duke Royalty announced an $8.75m royalty financing agreement with Instor Solutions on Tuesday, to support a shareholder buyout intended to transition equity control to the current executive management team, led by the CEO.
The AIM-traded company said Instor, founded in California in 1996, is a long-established and profitable product reseller and service provider for data centre build-outs and migrations.

With a "diverse and long-standing" customer base, including large technology companies, real estate investment trusts, and other large enterprises, the firm was Duke's 20th royalty partner since inception.

This financing agreement was on typical Duke terms, being a 30-year secured financing with monthly cash payments starting at the typical range.

Distributions would start immediately, and would be adjusted annually based on Instor's year-over-year consolidated revenue performance.

"Instor has built a strong reputation in the market for its ability to partner with clients to deliver consistently high quality work," said Duke chief executive officer Neil Johnson.

"We feel that the company is well positioned in an industry which is experiencing strong tailwinds.

"Duke is excited to be partnering with Instor in facilitating the transition of the ownership of the business to the current executive management team and in supporting their next phase of growth."

At 1620 GMT, shares in Duke Royalty were down 0.18% at 33.19p.

Reporting by Josh White for Sharecast.com.

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