Royal Systems Announces the Milost Global Term Sheet
September 13 2017 - 07:09PM
Royal Systems & Services Limited, a Ghana based group of
companies, announced today that it has signed a financing term
sheet of USD$80 million with Milost Global Inc, a New York based
Private Equity Firm. This is a working capital and development
facility for the company which is being provided as a combo of Debt
and Equity, of which $50 million will be an equity facility and $30
million will be debt facility. Both the company and the investor
are expected to sign a commitment letter by September 18th 2017. An
estimated amount of $21 million is provided for Royal to focus on
the completion of its current Takoradi Student Accommodation which
being developed in partnership with Takoradi Technical University
in Ghana. Then the balance of $59 million will be used for working
capital at a group level and other projects.
The Chief Executive Officer of Royal Systems & Services
Limited, Samuel Quadjie, stated “This is very important milestone
in the life of the company and we believe the impact it will make
on our growth strategy is expected to be phenomenal. Opportunities
which were hitherto not available to us in certain sectors of the
economy have become a possibility with the capacity this
partnership provides. Most capital sources in our country have been
difficult to obtain due to the high interest regime. This
partnership gives us the flexibility to initiate and roll out
potential projects with a calculated approach. We appreciate the
new path we are treading and are confident it will generate the
necessary returns to make our investors happy while providing much
needed boost in economic activity.”
The Managing Partner & CEO of Milost Global, Mandla J.
Gwadiso, stated “This is a very nice and profitable company that is
well managed by visionaries with a growth perspective beyond West
Africa. We are glad to have partnered such great talent.”
President and COO of Milost Global Inc., Mr. Bernard Yaw, added
“We believe in financing the education market as every developing
country will need an enormous pool of talented and educated workers
to move the country from a low-based agricultural to a high paying
industrial economy. The Company’s entrance into the sustainable and
high demand student housing market that will provide strong and
steady cash flow to the Company, auger well for our investment into
Royal Systems & Services Limited and for the country of
Ghana.”
About THE PROJECT
On August 1 2017, Royal Systems signed a 23-year
“BOOT”- Build, Own, Operate, and Transfer- agreement with Takoradi
Technical University (TTU), located in Takoradi, the Western Region
of Ghana, to construct a student hostel. The Takoradi Technical
University Hostel is a ~3000-bed student hostel project designed to
support the university house a section of its student population to
be admitted to a new satellite campus under construction.
The facility is designed to be an ultra-modern
state of the art structure using advanced building technology and
will be located on a 8.0-acre land within the school campus.
Construction works began in January 2017 and the
first phase, a 1000-bed block is expected to be complete in August
2018 before the beginning of the first academic year on the new
campus.
The project is estimated to cost ~USD
24,000,000.00
The completed project, which will help immensely
to plug the perennial accommodation deficit facing the school, also
provides the unique opportunity for Royal Systems to expand its
existing operations into the student hostel real estate subsector,
a very profitable market in Ghana. As Ghana’s tertiary population
keeps growing, we are confident that this project will generate
sustained real return into the future to satisfy our investors. We
are also conscious of the relief it provides to improve the welfare
of the student population of the university.
About Royal Systems & Services Limited
ROYAL SYSTEMS & SERVICES LIMITED, is a
wholly Ghanaian owned company existing under the laws of Ghana
having its registered office at #6 off Filbert Street, Near St.
Martin De-Pores School Dansoman Accra, P.O.Box 12802 Accra-North.
The company predominantly deals in providing telecommunication
infrastructure and civil engineering and consultancy and building
and construction.
RSSL is also registered as a class D1K1
contractor with the Ministry of Water Resources, Works and Housing
with REG CERT NO. MWRWH/CERT NO 31670A.
The company has three directors and experienced
staff strength of about 60 individuals with varied background and
skills in civil engineering, project management, finance,
accounting and telecommunication. In addition to its personnel, the
company hires additional staff on contract basis when it has excess
work load or need a specific expertise it lacks.
RSSL is an OHSAS 18001 and an ISO 9001:2015
Certified Company and is highly committed to working to meet
internationally acclaimed standards. RSSL is driven by the core
values of Responsiveness, Reliability, Integrity, Speed and
Quality.
WHAT WE DO
General Civil Construction &
Design
We have a team of Civil Engineers and Certified
Building Technologists that deploy state of the art:
- Building Designs and Construction (including Structural Design,
Draftsmanship, Quantity Surveying, Actual Construction and
Supervision works)
- General Estate/Facility Management and Maintenance (including
civils, electrical, electro-mechanical, carpentry, plumbing and all
other related building construction works)
- Office Fit-outs and General Furniture Supplies
Turnkey Telecommunications
Services
- Site Acquisition
- Site Design Works (Technical Site Surveys, Design Packs,
As-built and Engineering Services)
- Civil Works (Including Tower Foundation, Site Refurbishment
Works, Co-location Works)
- Tower Erection (Including Foundation Modification, Tower
Strengthening, Tower Refurbishments)
- Power and Electrical Works (Including Generator & Solar
Power Installations, Maintenance and Services)
- Telecom Installations (BTS, TX, Data Centers, Security
Systems)
- Fiber Laying and Terminations (Including Security
Fixtures)
- Transportation and Haulage Services
Material Supplies
- Telecom Material Supplies (Power Cabinets, Tower Accessories,
Installation materials, man hole covers, Fiber Optics
Materials)
- Electrical materials (cables, breakers, earthing materials
etc.)
OUR GROWTH
We have grown turnover from GHS 563,000 (2011)
to GHS 14,994,343(2016).
www.royalsystems.com.gh
About MILOST GLOBAL, INC.
Milost Global, Inc. is an American Private Equity firm that is
headquartered in New York City. With more than $25 billion in
committed capital, Milost is at the intersection of creative
investing and value creation. Milost is also a provider of
alternative capital, mezzanine finance and alternative lending to a
broad range of industries across the globe including Technology,
Transport, Cannabis, Education, Distribution, Mining, Oil &
Gas, Financial Services, Healthcare, Pharmaceuticals, Real Estate,
Alternative Energy and Infrastructure
Development. www.milostglobal.com
For more information
Samuel Quadjie
info@royalsystems.com.gh