REG - Riverstone Credit - New Water Infrastructure Services Investment

Riverstone Credit Opportunities IncomeAnnouncement

04/10/2022 07:00

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RNS Number : 6325B  Riverstone Credit Opps. Inc PLC  04 October 2022

 

4 October 2022

Riverstone Credit Opportunities Income Plc

New Water Infrastructure Services Investment

Attractive Yield with Significant Long-term Upside Potential

Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the
LSE-listed energy infrastructure and energy-transition credit investor, is
pleased to announce a secondary investment in a stapled bundle of private
securities in Seawolf Water Resources ("Seawolf") that includes a first lien
term loan along with preferred stock and common equity, collectively at a
significant discount to market value.

The investment by RCOI was completed on 26 September 2022. The term loan has a
maturity of March 31, 2026 and an estimated all-in yield to maturity on the
loan of 10.6 percent to RCOI. The preferred stock and common equity are
perpetual in nature but benefit from excess cash returned to the shareholders
from time to time. Across the term loan, preferred stock and common equity,
RCOI has committed a total of $9.0 million. With this investment, the RCOI
portfolio is nearly 90% committed.

Background

In September 2018, Riverstone Credit led the syndication of a $300.0 million
first lien term loan to a water infrastructure services company with
operations primarily in Loving County, TX and southern New Mexico. In March
2021, this loan was restructured into a smaller first lien loan, preferred
stock and common equity with the former lenders now controlling the company.
Recently one of the non-Riverstone Credit syndicate members sought a buyer for
their position and Riverstone Credit came to terms to purchase it at an
attractive price. In addition, the borrower has agreed to amend the loan to be
a sustainability linked loan with a sustainability performance target to be
finalized in the near future. Despite the stress experienced during the
COVID-19 pandemic, Seawolf today is experiencing some of its best operating
and financial results of the past four years.

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

"We are pleased to announce this attractive investment opportunity in the
water infrastructure services sector with a counterparty that the Company has
followed closely for many years. We therefore view the current opportunity to
participate in a term loan, preferred stock and common equity investment at a
significant discount to market value as an extremely compelling proposition
for our shareholders with considerable upside potential."

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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