REG - Riverstone Credit - Material 7% NAV Growth & Successful Realisations

Riverstone Credit Opportunities IncomeAnnouncement

20/10/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221020:nRST4715Da&default-theme=true

RNS Number : 4715D  Riverstone Credit Opps. Inc PLC  20 October 2022

20 October 2022

Riverstone Credit Opportunities Income

Quarterly Update

Material 7% NAV Growth & Further 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 30 September 2022,
inclusive of updated quarterly unaudited fair market valuations.

 

Unaudited Net Asset Value

 

As of 30 September 2022, the unaudited net asset value per Ordinary Share,
including net revenue for the quarter ended 30 September, was $1.10 ($1.02:
30 June 2022) an uplift of 7%.

 

Period Highlights

 

·    Material increase in NAV from $1.02 on 30 June 2022 to $1.10 on 30
September 2022. The majority of the increase due to the investment in Seawolf
Water Resources at an attractive discount.

·    Established track record of attractive realisations continues:

o FS Crude LLC realised on 16 September 2022 at 14.8 percent gross IRR and
1.23x gross MOIC

o Circulus Holdings realised on 6 October 2022 at 16.6 percent gross IRR and
1.14x gross MOIC

o Epic Propane initial investment realised on 30 September 2022 with nearly $1
million of gains received; in addition, loan amended and extended to 30
September 2026 at attractive economics and converted to sustainability linked
loan with Sustainable Fitch providing an SPO

·    Continue to invest capital across infrastructure, infrastructure
services and energy transition pipeline to keep the fund committed and
dividend stable

o On 1 September 2022, upsize of investment in Hoover Circular Solutions

o On 26 September 2022, secondary investment in a stapled bundle of private
securities in Seawolf Water Resources including a first lien term loan along
with preferred stock and common equity

 

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%

·    33.0% NAV total return(5) since IPO in May 2019

·    20.6 cents in dividends paid since inception(6)

 

 

 

 

 

Market Update

·    Q3 2022 saw volatility increase due to a slowdown in global growth
expectations and oil prices dropping by over 10%. Despite this, the Company
believes the current energy market environment remains constructive for RCOI's
borrowers. By continuing to focus the RCOI portfolio on energy infrastructure
and infrastructure services, swings in the commodity markets will have less of
a direct impact on the current portfolio and future investments. This was
illustrated by the Company's Q3 2022 performance, where RCOI experienced a
significant increase in NAV per share in the face of significant volatility.
 

·    Based on the current unfunded commitments, recent deal activity and
potential new investment opportunities, the Investment Manager believes RCOI
will remain close to fully committed throughout 2022.

Reuben Jeffery III, Chairman of RCOI, commented:

"Q3 2022 was very encouraging for RCOI given further profitable realisations
as well as new commitments in our target sectors. In addition, a significant
quarterly increase in NAV was principally attributable to the attractive
investment opportunity secured in Seawolf Resources. 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.

Since launch in May 2019 the Company we are pleased that the Company has
delivered a total NAV return(5) of 33.0% including 20.6 cents per share in
dividend distributions(6)."

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

"We are pleased that RCOI's existing portfolio is now majority green and
sustainability linked loans across our target sectors, an important milestone.
In an active third quarter of 2022, RCOI had $24.8 million of realisations and
committed $31.6 million of new capital in three investments, an upsize to
Hoover Circular Solutions, the amended EPIC Propane investment and Seawolf
Resources. We are pleased to have completed over 10 deal realisations since
the start of COVID, all with a blended IRR of 17% over that time period,
demonstrating the resilience of our investment strategy.

Hoover Circular Solutions is a company with which we have a long history and
intricate familiarity, and which provides essential infrastructure and
services to the petrochemicals sector. We believe this upsizing represents a
compelling opportunity for RCOI to increase exposure to a short duration
investment with a highly attractive yield. 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. Finally, despite the
stress experienced during the COVID pandemic, Seawolf today is experiencing
some of its best operating and financial results of the past four years.

 

Based on the growing track record of attractive realisation multiples, strong
portfolio cash flow and the high level of current investment we believe that
going forward our portfolio income will be sufficient to grow the Company in
addition to delivering on our dividend target yield of 8-10% per annum and
preserving principal."

 

Cumulative Portfolio Summary

Unrealised Portfolio 1 

 

 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 30 September 2022(2)  Gross MOIC
 Caliber Midstream(3)                    Infrastructure           Aug-19           4.0                                 4.0                                0.5                              0.5                           1.0                                                  40.71%                               0.24x
 Hoover Circular Solutions               Infrastructure Services  Oct-20           15.4                                15.4                               4.6                              12.0                          16.6                                                 100.74%                              1.08x
 Imperium3NY LLC                         Energy Transition        Apr-21           6.8                                 5.4                                6.7                              2.5                           9.2                                                  2.49(4)                              1.71x
 Blackbuck Resources LLC                 Infrastructure           Jun-21           11.5                                10.2                               1.9                              9.9                           11.8                                                 100.44%                              1.16x
 Circulus Holdings, PBLLC                Infrastructure           Aug-21           12.3                                12.3                               4.3                              9.7                           14.0                                                 103.00%                              1.14x
 Streamline Innovations Inc.             Infrastructure Services  Nov-21           13.8                                6.8                                0.7                              6.9                           7.6                                                  99.12%                               1.12x
 Harland & Wolff Group Holdings PLC      Infrastructure Services  Mar-22           12.5                                12.5                               0.7                              12.5                          13.2                                                 96.98%                               1.05x
 Seawolf Water Resources                 Services                 Sept-22          9.0                                 9.0                                0.0                              14.3                          14.3                                                 14.29(4)                             1.59x
 EPIC Propane Pipeline, LP               Infrastructure           Sept-22          13.9                                13.9                               0.1                              13.9                          14.0                                                 99.00%                               1.01x
                                                                                   $99.2                               $89.4                              $19.6                            $82.1                         $101.7                                                                                    1.14x

 

 Direct Lending Consolidated Portfolio Key Stats at Entry As of 30 September
 2022
 Weighted Avg. Entry Basis              97.1%
 Weighted Avg. All-in Coupon at Entry   8.96 p.a.
 Weighted Avg. Undrawn Spread at Entry  4.1 p.a.
 Weighted Avg. Tenor at Entry           3.1 years
 Weighted Avg. Call Premium at Entry    102.8
 Security                               100% Secured

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        Infrastructure                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                               1.22 x
 U.S. Shipping              Infrastructure Services       Feb-21           Aug-21            6.5                                 6.5                                7.3                              1.13 x
 Aspen Power Partners       Infrastructure                Dec-20           Oct-21            6.9                                 3.4                                4.3                              1.27 x
 Project Mariners           Infrastructure Services       Jul-19           Apr-22            13.2                                13.2                               17.6                             1.33x
 Roaring Fork Midstream     Infrastructure                Mar-21           Jun-22            5.9                                 5.9                                6.9                              1.16x
 FS Crude, LLC              Infrastructure                Mar-20           Sept-22           13.7                                13.7                               16.9                             1.23x
 EPIC Propane Pipeline, LP  Infrastructure                Dec-19           Sept-22           14.8                                14.8                               19.6                             1.32x
                                                                                             $134.4                              $122.2                             $145.9                           1.19x

 

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    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 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/
(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.

 

(#_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 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 30 September 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 June 2022
and paid as of 30 September 2022.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  PFUQKLFFLBLEFBF