REG - Riverstone Credit - EPIC Propane Investment Extended

Riverstone Credit Opportunities IncomeAnnouncement

13/10/2022 07:00

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RNS Number : 6940C  Riverstone Credit Opps. Inc PLC  13 October 2022

 

13 October 2022

Riverstone Credit Opportunities Income Plc

EPIC Propane Investment Extended, Restructured as a Sustainability-Linked Loan

c. $1m in Realised Profits From Extension

Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the
LSE-listed energy infrastructure and energy-transition credit investor, is
pleased to announce the successful amendment and extension of its investment
in EPIC Propane, a sponsor-backed infrastructure company that provides propane
purity offtake transportation to the Gulf Coast export market.  EPIC Propane
is part of the broader EPIC Midstream system that includes over 1,695 miles of
crude oil and natural gas liquids pipelines, collectively referred to as
"EPIC".

The loan's maturity was extended to September 2026 and the optional prepayment
feature was amended to add a two-year make-whole provision. RCOI has realised
c. $1m profits from the extension. All other material economic terms remain
the same. As part of the amendment, the loan was converted to a sustainability
linked loan and all of the economics associated with the original transaction
were realised, including the exit premium. Additionally, as part of the
amendment, RCOI's allocation to the loan was reduced from $14.8m to $13.9m in
order to comply with the Company's diversification policies.

The newly amended term loan will receive a Secondary Party Opinion from
Sustainable Fitch to confirm the terms of the loan are aligned with the
Sustainability-Linked Loan Principles.  EPIC's sustainability strategy places
a large focus on leak detection and reduction, supported by 1,695 miles of
leak detection fibre installed along its pipelines, which collects real-time
data from the pipeline 24 hours per day. The sustainability performance target
for the transaction is the reduction of reportable releases from its
pipelines, including both natural gas liquids and crude oil.

 

Christopher Abbate, Co-Head of Riverstone Credit, the Company's Investment
Manager said:

"Since our initial investment in EPIC Propane, the borrower has been a steady
and strong performer, completing construction of a mission-critical piece of
energy infrastructure during the tumultuous COVID pandemic. We were pleased to
extend this investment which we see as a win for both the borrower and the
Company.

"We have now achieved over 10 deal realisations since March 2020 with a
blended IRR of 17% over that time period and remain very pleased with
portfolio performance as a whole. With the existing portfolio now re-balanced
towards green and sustainability linked loans and a robust pipeline of similar
investment opportunities, we believe the Company represents a compelling
opportunity for investor value creation."

For Riverstone Credit Opportunities Income Plc:

Adam
Weiss
                +1 212 271 2953

Media Contacts:
 Buchanan
 Helen Tarbet    Tel: +44 (0) 20 7466 5109
 Henry Wilson    Tel: +44 (0) 20 7466 5111
 Jon Krinks      Tel: +44 (0) 20 7466 5199
 Verity Parker   Tel: +44 (0) 20 7466 5197
                 Email:
                 rcoi@buchanan.uk.com (mailto: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/
(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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