REG - Riverstone Credit - 4Q21 Portfolio Valuations & Recent Activity

Riverstone Credit Opportunities IncomeAnnouncement

21/01/2022 07:05

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RNS Number : 1603Z  Riverstone Credit Opps. Inc PLC  21 January 2022

Riverstone Credit Opportunities Income Announces 4Q21 Quarterly Portfolio
Valuations & Recent Activity

London, UK (21 January 2022) - Riverstone Credit Opportunities Income ("RCOI")
announces its quarterly portfolio summary as of 31 December 2021, inclusive of
updated quarterly unaudited fair market valuations:

 

As of 31 December 2021, the unaudited net asset value per Ordinary Share,
including net revenue for the quarter ended 31 December, was $1.02.

 

Cumulative Portfolio Summary

Unrealised Portfolio 1  (#_edn1)

 

 Investment Name              Subsector                Commitment Date  Cumulative Committed Capital ($mm)  Cumulative Invested Capital ($mm)  Gross Realised Capital ($mm)(1)  Gross Unrealised Value ($mm)  Gross Realised Capital & Unrealised Value ($mm)      % of Par as of 31 Dec 2021(2)  Gross MOIC
 Project Mariners             Infrastructure Services  Jul-19           13.2                                13.2                               7.1                              10.6                          17.7                                                 110.00%                        1.31 x
 Caliber Midstream(3)         Midstream                Aug-19           3.9                                 3.9                                0.4                              0.3                           0.7                                                  6.77%                          0.17 x
 Epic Propane Pipeline        Midstream                Dec-19           14.8                                14.8                               2.7                              15.4                          18.1                                                 101.60%                        1.22 x
 FS Crude                     Midstream                Mar-20           13.7                                13.7                               9.4                              6.8                           16.2                                                 100.27%                        1.18 x
 Hoover Circular Solutions    Infrastructure Services  Oct-20           7.4                                 7.4                                4.2                              4.0                           8.2                                                  100.61%                        1.11 x
 Roaring Fork Midstream       Midstream                Mar-21           5.9                                 4.2                                0.4                              4.3                           4.7                                                  99.88%                         1.13 x
 Imperium3NY LLC              Energy Transition        Apr-21           6.8                                 5.4                                1.5                              5.8                           7.3                                                  128.74%                        1.35 x
 Blackbuck Resources LLC      Infrastructure Services  Jun-21           9.9                                 8.9                                1.1                              8.4                           9.5                                                  99.27%                         1.07 x
 Circulus Holdings, PBLLC     Infrastructure Services  Aug-21           12.3                                12.3                               3.6                              9.2                           12.7                                                 97.79%                         1.04 x
 Streamline Innovations Inc.  Energy Transition        Nov-21           6.9                                 1.7                                0.1                              1.7                           1.8                                                  98.72%                         1.08 x
                                                                        $94.8                               $85.4                              $30.4                            $66.5                         $96.9                                                                               1.13 x

 

 

Realised Portfolio

 Investment Name        Subsector                     Commitment Date  Realisation Date  Cumulative Committed Capital ($mm)  Cumulative Invested Capital ($mm)  Gross Realised Capital ($mm)(1)  Gross MOIC
 Rocky Creek Resources  Exploration & Production      Jun-19           Dec-19            6.0                                 4.3                                4.9                              1.15 x
 CIG Logistics          Infrastructure Services       Jan-20           Jan-20            8.7                                 8.7                                8.9                              1.02 x
 Mallard Exploration    Exploration & Production      Nov-19           Apr-20            13.8                                6.8                                7.7                              1.13 x
 Market Based           Multiple                      Aug-20           Nov-20            13.4                                13.4                               13.6                             1.01 x
 Project Yellowstone    Midstream                     Jun-19           Mar-21            5.8                                 5.8                                7.2                              1.23 x
 Ascent Energy          Exploration & Production      Jun-19           Jun-21            13.3                                13.3                               16.1                             1.21 x
 Pursuit Oil & Gas      Exploration & Production      Jul-19           Jun-21            12.3                                12.3                               15.0                             1.22 x
 U.S. Shipping          Midstream                     Feb-21           Aug-21            6.5                                 6.5                                7.3                              1.13 x
 Aspen Power Partners   Energy Transition             Dec-20           Oct-21            6.9                                 3.4                                4.3                              1.27 x
                                                                                         $86.8                               $74.5                              $85.0                            1.14 x

 

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.

 Direct Lending Consolidated Portfolio Key Stats at Entry As of 31 December
 2021
 Weighted Avg. Entry Basis              96.8%
 Weighted Avg. All-in Coupon at Entry   9.32 p.a.
 Weighted Avg. Undrawn Spread at Entry  4.4% p.a.
 Weighted Avg. Tenor at Entry           3.2 years
 Weighted Avg. Call Premium at Entry    108.7
 Security                               100% Secured

 

 

Manager Outlook

§  Despite the recent concerns regarding the omicron variant, energy markets
remained resilient throughout the end of 2021 with commodity prices remaining
near the highs seen in Q3 2021. In addition, the Investment Manager's on-going
shift to energy infrastructure & infrastructure services and energy
transition assets, continues to further diversify and insulate the portfolio
from commodity price or other macro volatility. Continued optimism remains
across the RCOI portfolio, as the aggregate unrealized portfolio valuations
were up QoQ in Q4 2021.

§  Imperium3, a $6.8 million RCOI commitment in April 2021 to a lithium-ion
battery manufacturer, saw the largest increase in value in Q4 2021. This was
due to a material increase in the value of equity raised in the second half of
2021 versus the value ascribed at closing.

§  Based on the current unfunded commitments, expected new deal activity and
potential upsizes of existing investments, the Investment Manager believes
that RCOI will be close to fully committed and materially invested by the end
of Q1 2022.

§  In addition to providing support to the current portfolio companies, the
Investment Manager expects to have ample opportunities throughout 2022 to
deploy capital to target infrastructure, infrastructure services and energy
transition investment. The portfolio is expected to continue to provide steady
income and offer attractive returns for our shareholders.

Reuben Jeffery III, Chairman of RCOI, commented:

"Set against an encouraging energy market backdrop and strong fundamentals
into the beginning of 2022, we remain very pleased with the performance of the
RCOI vehicle. The Company currently has a net asset value per share of $1.02
and has returned over 20 cents per share to investors since the IPO."

Christopher Abbate and Jamie Brodsky, Co-Founders of Riverstone Credit, added:

"Q4 2021 was the second quarter without any upstream exposure in the RCOI
portfolio or any expected in the foreseeable future. We do believe there
remains a very attractive pipeline of investment opportunities within the
energy infrastructure & infrastructure services and energy transition
sectors. In Q4 2021, RCOI was able to fully realise one investment and execute
one new sustainability-linked loan. The realisation of Aspen Power Partners, a
first-lien green loan to a community solar developer, occurred in October
2021, resulting in a 36.0% IRR and 1.27x MOIC. In addition, in November 2021,
RCOI provided a first lien term sustainability-linked loan to Streamline
Innovations, a sponsor-backed leader in environmentally advanced treatment
solutions and equipment for hydrogen sulfide (H(2)S) in energy, renewable
fuels, wastewater, landfill gas, biogas, and industrial processes. We remain
very optimistic about the opportunity set available for our target sector and
remain focused on steady capital deployment and consistency of yield."

 

About Riverstone Credit Opportunities Income Plc:

 

RCOI seeks to generate consistent Shareholder returns predominantly in the
form of income distributions, principally by making senior secured loans to
small and middle-market energy companies. The investment strategy is
predicated on asset-based lending, with conservative loan-to-value ratios and
structural protective features to mitigate risk. The Company will invest
broadly across energy subsectors globally, with an initial focus on North
America. RCOI intends to create a diversified portfolio across basins,
commodities, and end-markets to provide natural synergies and hedges that
could enhance the overall stability of the portfolio

For further details, see https://www.riverstonecoi.com/
(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.

 

Media Contacts
 

For Riverstone Credit Opportunities Income Plc:

 

Adam Weiss

+1 212 271 2953

(#_ednref1) 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 Midstream Equity, Term Loan, and Revolver

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