TIDMRCOI
RNS Number : 7498N
Riverstone Credit Opps. Inc PLC
25 January 2023
25 January 2023
Riverstone Credit Opportunities Income
Quarterly Update
Full Deployment Reached Despite Continued Successful
Realisations
Riverstone Credit Opportunities Income ("RCOI" or the
"Company"), the LSE-listed energy infrastructure and
energy-transition credit investor, is pleased to announce its
quarterly portfolio summary as of 31 December 2022, inclusive of
updated quarterly unaudited fair market valuations.
Unaudited Net Asset Value
As of 31 December 2022, the unaudited net asset value per
Ordinary Share, including net revenue for the quarter ended 31
December, was $1.08 ($1.10: 30 September 2022). This reduction was
principally due to a movement in the valuation of an equity
position.
Period Highlights
-- Established track record of attractive realisations continues:
o Circulus Solutions realised on 6 October 2022 at 16.6 percent
gross IRR and a 10.8 percent
net IRR and 1.14x gross MOIC and a 1.09x net MOIC
o Hoover Circular Solutions initial investment realised on 30
November 2022 at 15.0 percent
gross IRR and a 7.8 percent net IRR and a 1.10x gross MOIC and a
1.05x net MOIC; in
addition, loan amended and extended to 30 November 2026
-- Continues to invest capital in active pipeline of
infrastructure, infrastructure services and energy transition
opportunities to keep the fund substantially committed.
o On 30 November 2022, closed a new sustainability-linked first
lien term loan to Hoover
Circular Solutions, which refinanced the prior position.
o On 22 December 2022, closed a sustainability-linked first lien
term loan to Clean Energy
Fuels Corp. ("Clean Energy Fuels" or "CLNE"). At close on 22
December 2022, RCOI
committed $13.9 million.
o On 30 December 2022, closed a $28.6 million
sustainability-linked, first lien term loan to
a subsidiary of Max Midstream. At close on 30 December 2022,
RCOI committed $5.0
million.
o Throughout Q4 2022, committed an additional $2.1 million of
capital as part of an upsize
for Harland & Wolff Group Holdings PLC
-- Successfully closed a $15.0 million senior secured revolving
credit facility on 7 December 2022 aiming to further enhance
returns.
Portfolio Summary / Lifetime Key Performance Indicators
-- Portfolio of 100% floating rate, short duration, senior
secured loans supporting RCOI's ambition to deliver annual returns
to shareholders of 8-10%
-- 33.7% NAV total return(5) since IPO in May 2019 (14.5% annual return for 2022)
-- 22.6 cents in dividends paid since inception(6)
Market Update
-- With the strong backdrop of energy market performance, the
important global priority of de-carbonisation and the Company's
unique focus on short duration lending - the re-balancing of the
portfolio to energy-transition focused investments is now
complete.
-- There was a slight reduction in our NAV per share in Q4 2022
versus Q3 2022 ($1.10 to $1.08), due mainly to a reduction in the
mark on the common equity investment in Seawolf Water Resources.
While the business remains fundamentally healthy as it continues to
expand into new markets, the near-term outlook for its core
business of brackish water supply was modestly reduced, resulting
in a decrease in valuation.
-- Based on the current portfolio commitments, as well as the
addition of the revolving credit facility, we believe the ability
to maintain near full deployment is achievable.
Reuben Jeffery III, Chairman of RCOI, commented:
"Q4 2022 was very encouraging for RCOI given further profitable
realisations as well as new commitments in our target sectors. I
believe the Company is well-positioned to continue to provide
attractive returns from its portfolio as well as through new senior
secured investments from the considerable pipeline of opportunities
progressing through due diligence. Underlying rates are as high as
they've been in our history, and now with the Company's capital
fully deployed, we expect our shareholders to benefit from the
increased earnings power of the portfolio.
Since launch in May 2019, a period that has included challenging
conditions for equity investors, we are pleased that the Company
has delivered a total NAV return(5) of 33.7% (14.5% annual return
for 2022) including 22.6 cents per share in dividend
distributions(6) ."
Christopher Abbate and Jamie Brodsky, Co-Founders of Riverstone
Credit, the investment adviser, added:
" We achieved two key milestones in the fourth quarter. First,
as of year-end, RCOI's portfolio is now comprised almost
exclusively of Green and Sustainability-Linked loans, representing
approximately 95% of NAV. Second, with the closing of our revolving
credit facility in December, the Company is now able to better
manage its liquidity needs, allowing for higher deployment of
capital. With the Max Midstream deal completed on the last business
day of the year, RCOI is now 102% committed and approaching 100%
invested.
"In an active fourth quarter, RCOI had $23.9 million of
realisations and committed $34.6 million of new capital in four
investments, a refinancing of Hoover Circular Solutions, an upsize
to Harland & Wolff Group Holdings PLC, Clean Energy Fuels
Corp., and Max Midstream. We are pleased to have completed over 10
deal realisations since the start of COVID, all with a blended
gross IRR of 17% (net IRR of 13%), demonstrating the resilience of
our investment strategy. We look forward to a productive 2023."
Cumulative Portfolio Summary
Unrealised Portfolio [1]
Investment Subsector Commitment Cumulative Cumulative Gross Gross Gross % of % of 31 31
Name Date Committed Invested Realised Unrealised Realised Par Par Dec Dec
Capital Capital Capital Value Capital as of as of 2022 2022
($mm) ($mm) ($mm)(1) ($mm) & 31 Dec 30 Sept Gross Net
Unrealised 2022(2) 2022(2) MOIC MOIC
Value
($mm)
Caliber
Midstream(3) Infrastructure Aug-19 4.0 4.0 0.5 0.5 1.0 40.72% 40.71% 0.25x 0.20x
Imperium3NY Energy 2.70 2.49
LLC Transition Apr-21 6.8 5.4 6.7 2.7 9.4 (4) (4) 1.75x 1.70x
Blackbuck
Resources
LLC Infrastructure Jun-21 11.5 11.0 2.3 10.8 13.1 100.83% 100.44% 1.18x 1.13x
Streamline
Innovations Infrastructure
Inc. Services Nov-21 13.8 6.8 1.0 7.1 8.0 99.57% 99.12% 1.17x 1.12x
Harland
& Wolff
Group Holdings Infrastructure
PLC Services Mar-22 14.6 14.6 1.2 15.7 16.8 102.49% 96.98% 1.15x 1.10x
Seawolf 13.02 14.29
Water Resources Services Sept-22 9.0 9.0 0.1 13.0 13.1 (4) (4) 1.46x 1.41x
EPIC Propane
Pipeline,
LP Infrastructure Sept-22 13.9 13.9 0.5 13.9 14.4 99.08% 99.00% 1.04x 0.99x
Hoover
Circular Infrastructure
Solutions Services Nov-22 13.7 13.7 0.1 13.9 14.0 98.05% NA 1.02x 0.97x
Clean
Energy Energy
Fuels Corp Transition Dec-22 13.9 13.9 0.1 13.9 14.0 99.00% NA 1.01x 0.96x
Max Midstream Infrastructure Dec-22 5.0 5.0 0.1 5.0 5.1 100.00% NA 1.01x 0.96x
----------- ----------- --------- ----------- ----------- -------- -------- ------ ------
$106.2 $97.3 $12.6 $96.4 $109.0 1.12x 1.07x
Direct Lending Consolidated Portfolio Key Stats at Entry As of 31 December
2022
Weighted Avg. Entry Basis 97.5%
---------------------------------------------------------------
Weighted Avg. All-in Coupon at Entry 9.64 p.a.
---------------------------------------------------------------
Weighted Avg. Undrawn Spread at Entry 4.0 p.a.
---------------------------------------------------------------
Weighted Avg. Tenor at Entry 3.1 years
---------------------------------------------------------------
Weighted Avg. Call Premium at Entry 102.8
---------------------------------------------------------------
Security 100% Secured
---------------------------------------------------------------
Realised Portfolio
Investment Subsector Commitment Realisation Cumulative Cumulative Gross 31 Dec 31
Name Date Date Committed Invested Realised 2022 Dec
Capital Capital Capital Gross 2022
($mm) ($mm) ($mm)(1) MOIC Net
MOIC
Rocky Creek Exploration 1.15 1.10
Resources & Production Jun-19 Dec-19 6.0 4.3 4.9 x x
Infrastructure 1.02 0.97
CIG Logistics Services Jan-20 Jan-20 8.7 8.7 8.9 x x
Mallard Exploration 1.13 1.08
Exploration & Production Nov-19 Apr-20 13.8 6.8 7.7 x x
Market 1.01 0.96
Based Multiple Aug-20 Nov-20 13.4 13.4 13.6 x x
Project 1.23 1.18
Yellowstone Infrastructure Jun-19 Mar-21 5.8 5.8 7.2 x x
Ascent Exploration 1.21 1.16
Energy & Production Jun-19 Jun-21 13.3 13.3 16.1 x x
Pursuit Exploration 1.22 1.16
Oil & Gas & Production Jul-19 Jun-21 12.3 12.3 15 x x
Infrastructure 1.13 1.07
U.S. Shipping Services Feb-21 Aug-21 6.5 6.5 7.3 x x
Aspen Power 1.27 1.22
Partners Infrastructure Dec-20 Oct-21 6.9 3.4 4.3 x x
Project Infrastructure 1.28
Mariners Services Jul-19 Apr-22 13.2 13.2 17.6 1.33x x
Roaring 1.11
Fork Midstream Infrastructure Mar-21 Jun-22 5.9 5.9 6.9 1.16x x
FS Crude, 1.18
LLC Infrastructure Mar-20 Sept-22 13.7 13.7 16.9 1.23x x
EPIC Propane
Pipeline, 1.27
LP Infrastructure Dec-19 Sept-22 14.8 14.8 19.6 1.32x x
Circulus
Holdings, 1.09
PBLLC Infrastructure Aug-21 Oct-22 12.3 12.3 14.0 1.14x x
Hoover
Circular Infrastructure 1.05
Solutions Services Oct-20 Nov-22 15.4 15.4 17.0 1.10x x
$162.1 $149.8 $176.8 1.18x 1.13x
The Gross Realised Capital column includes interest, fee income,
and principal received. The Gross Unrealised Value column includes
the amortization of OID, accrued interest, fees and any unrealised
change in the value of the investment.
For Riverstone Credit Opportunities Income Plc:
Adam Weiss
+1 212 271 2953
J.P. Morgan Cazenove (Corporate
Broker) +44 (0)20 7742 4000
William Simmonds
Jérémie Birnbaum
James Bouverat (Sales)
Media Contacts:
Buchanan
Helen Tarbet Henry Tel: +44 (0) 20 7466 5109 Tel:
Wilson Jon Krinks +44 (0) 20 7466 5111 Tel: +44
Verity Parker (0) 20 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 also lends to
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.
1 Gross realised capital is total gross income realised on
invested capital.
(2) Includes fair market value of equity and rights where
applicable as a percentage of par.
(3) Includes Caliber HoldCo Escrow, Caliber MFC LLC equity,
Caliber Midstream Revolver & Priming Facility.
(4) Reflects the total fair market value in millions.
(5) NAV total return equals cumulative paid dividend cents per
share and NAV per share as of 31 December 2022 divided by the
opening capital net of share issuance costs as of 28 May 2019.
(6) Reflects cumulative dividend cents per share declared as of
30 September 2022 and paid as of 31 December 2022.
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END
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