RCS - Riverstone Credit - Edison issues update on Riverstone Credit Opp. Inc

Riverstone Credit Opportunities IncomeAnnouncement

07/09/2023 09:00

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RNS Number : 7106L  Riverstone Credit Opps. Inc PLC  07 September 2023

London, UK, 7 September 2023

 

Edison issues update on Riverstone Credit Opportunities Income (RCOI)

Riverstone Credit Opportunities Income (RCOI) reported an H123 NAV total
return (TR) of 4.1%, with all loan investments in its portfolio performing to
plan (also with respect to key sustainability performance indicators embedded
in the loan terms). In June 2023, RCOI participated in the refinancing of the
Streamline Innovations loan, which allowed it to realise a gross internal rate
of return (IRR) of 23.6% and multiple on invested capital (MOIC) of 1.29x on
the original US$13.8m loan (after a holding period of 13 months). RCOI
reinvested US$9.9m into a new loan to Streamline Innovations, with an
estimated all-in yield to maturity of 13%. It declared a quarterly dividend of
2.0 US cents per share (in line with the previous quarter). At the current c
17% discount to NAV (including income), the last 12-month (LTM) payment now
implies a c 10% dividend yield.

 

RCOI's targeted dividend yield of 8-10% on its IPO price of US$1.00 looks well
covered (assuming no portfolio defaults). This is underpinned by the
normalisation in the interest rate environment (current Secured Overnight
Financing Rate, SOFR, of c 5.30%), confidence that RCOI will stay close to
fully invested, as well as key portfolio metrics. These metrics include (on a
weighted average basis as at end-June 2023): 1) a floating rate spread of
710bp, 2) a call premium at entry of 102.6%, 3) a structuring fee and/or
original issue discount of 97.5% par and 4) a moderate loan to value ratio of
40%.

 

Click here
(https://www.edisongroup.com/research/riverstone-credit-opportunities-income-continues-to-benefit-from-healthy-yields/32636/)
to view the full report.

 

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