Riverstone Credit Opps. Inc PLC Refinancing & Upsizing of Hoover CS Investment (1718I)
01 December 2022 - 6:00PM
UK Regulatory
TIDMRCOI
RNS Number : 1718I
Riverstone Credit Opps. Inc PLC
01 December 2022
1 December 2022
Riverstone Credit Opportunities Income Plc
Successful Refinancing & Upsizing of Hoover CS
Investment
Realisation of Existing RCOI Hoover CS Loan with $1.6 Million
Gross Profit
Riverstone Credit Opportunities Income ("RCOI"), the LSE-listed
energy infrastructure and energy-transition credit investor, is
pleased to announce a successful realization of the Company's
investment in Hoover CS (the "Borrower" or the "Company") as well
as an upsized investment in a new sustainability-linked first lien
term loan (the "Term Loan") for the Borrower. With this upsize,
RCOI is now nearly fully invested, with the portfolio almost
exclusively green loans and sustainability-linked loans.
Hoover CS, a leading provider of sustainable packaging and fleet
management solutions, is paving the way for customers across the
chemical, refining and general industrial-end markets to move away
from single-use containers. Through its large rental fleet of
reusable liquid and dry intermediate bulk containers and ISO tanks,
combined with integrity management and fleet management services,
Hoover CS's sustainable packaging solutions facilitate circularity
across the supply chain, yielding an optimized environmental
footprint through reduced plastic, water conservation, and lower
greenhouse gas emissions.
In October 2020, RCOI committed $7.4 million to the Borrower's
previous $225 million first lien term loan as part of a
comprehensive recapitalization of the business also involving a $35
million second lien term loan and over $90 million of additional
private equity investment. Post-closing, RCOI received repayments
totaling $3.6 million throughout 2021 and 2022 bringing RCOI's
commitment down to $3.8 million. On 1 September 2022, RCOI was able
to opportunistically purchase $8.0 million of incremental first
lien term loan bringing RCOI's previous commitment up to $11.7
million. On 30 November 2022, all of the Borrower's outstanding
debt was refinanced by the new $160 million sustainability-linked,
first lien term loan due November 2026. As part of the new deal
allocations, RCOI's commitment was further upsized to $13.7 million
and the expected returns are in line with the initial
investment.
As part of the closing, the new sustainability-linked, first
lien term loan received a secondary party opinion ("SPO") from
Sustainable Fitch to confirm that the terms are structured in
accordance with the LSTA Sustainability-Linked Loan ("SLL")
Principles and aligned with all five pillars. The new credit
facility successfully links three key performance indicators
("KPIs") to potential loan price increases for non-compliance. The
three KPIs are linked to 1) the percent of electricity the Borrower
sources from non-fossil fuel energy sources, 2) a reduction of
waste water disposal, and 3) the precent of bulk chemicals
purchased by Hoover CS that is shipped in sustainable
packaging.
Danny Flannery, Managing Director of Riverstone Credit, the
Company's Investment Manager said:
"Hoover CS has a demonstrated track record of helping its
customers across multiple end markets improve environmental
performance and the circularity of their supply chains, and we are
pleased to partner with them on their next phase of growth. This
investment is in-line with our stated yield target and focus on
sustainability-linked loans. It also means that RCOI is now almost
fully invested."
For Riverstone Credit Opportunities Income Plc:
Adam Weiss +1 212 271 2953
Media Contacts:
Buchanan
Helen Tarbet Henry Tel: +44 (0) 20 7466 5109 Tel: +44
Wilson Jon Krinks Verity (0) 20 7466 5111 Tel: +44 (0) 20
Parker 7466 5199 Tel: +44 (0) 20 7466 5197
Email: rcoi@buchanan.uk.com
About Riverstone Credit Opportunities Income Plc :
RCOI lends to companies that build and operate the
infrastructure used to generate, transport, store and distribute
both renewable and conventional sources of energy, and companies
that provide services to that infrastructure. RCOI is strategically
repositioning towards companies seeking to facilitate the energy
transition by decarbonizing the energy, industrial and agricultural
sectors, building sustainable infrastructure and reducing or
sequestering carbon emissions. The Company seeks to ensure that its
investments are having a positive impact on climate change by
structuring each deal as either a green loan or a
sustainability-linked loan, documented using industry best
practices.
For further details, see https://www.riverstonecoi.com/ .
Neither the contents of RCOI's website nor the contents of any
website accessible from hyperlinks on the websites (or any other
website) is incorporated into, or forms part of, this
announcement.
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