REG - Riverstone Credit - Q1 2023 Portfolio Update & Recent Activity

Riverstone Credit Opportunities IncomeAnnouncement

20/04/2023 07:00

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RNS Number : 8222W  Riverstone Credit Opps. Inc PLC  20 April 2023

20 April 2023

Riverstone Credit Opportunities Income

Quarterly Update

Full Deployment Sustained Resulting In Robust Q1 Performance

Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the
LSE-listed energy infrastructure and energy-transition credit investor, is
pleased to announce a strong portfolio performance for the quarter from 1
January to 31 March 2023, inclusive of updated quarterly unaudited fair market
valuations.

 

Unaudited Net Asset Value

 

As of 31 March 2023, the unaudited net asset value per Ordinary Share,
including net revenue for the quarter ended 31 March, was broadly stable
at $1.06 ($1.08: 31 December 2022). This slight reduction was principally due
to a movement in the valuation of the warrants related to a loan that was
previously repaid.

 

Portfolio Summary and 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%
whilst supporting companies engaged in supporting the energy transition

·    34.3% NAV total return(5) since IPO in May 2019 (33.7% at 31 December
2022)

·    25.6 cents in dividends paid since inception(6)

Portfolio Update

·    Against a backdrop of strong energy market performance, the global
focus on de-carbonisation and the Company's unique focus on short duration
lending, the Company remains extremely well positioned in the current
environment. Further the re-balancing of the portfolio to accredited
energy-transition focused investments through green or sustainability linked
structures is now complete.

·    Based on the current portfolio commitments, as well as the addition
of the revolving credit facility in Q4 2022, the Company is nearly fully
invested today.

Reuben Jeffery III, Chairman of RCOI, commented:

"The RCOI portfolio performed robustly in Q1 2023, and I believe the Company
is well-positioned to continue to provide shareholders with attractive returns
from its portfolio as well as through new senior secured investments from the
considerable pipeline of opportunities currently progressing through due
diligence. Underlying rates are as high as they've been in our history, and
now with the Company's capital fully deployed, we expect our shareholders to
benefit from the increased earnings power of the portfolio in this attractive
environment.

Since launch in May 2019, a period that has included volatile conditions for
equity investors and the energy sector, we are pleased that the Company has
delivered a total NAV return(5) of 34.3% (33.7% at 31 December 2022) including
25.6 cents per share in dividend distributions(6)."

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

"RCOI's portfolio comprises Green and Sustainability-Linked loans with stable
cash income and quality assets. The increase in rates over the end of 2023
continues to result in higher coupons for our portfolio, which consists of
over 95% floating rate investments. We are pleased to have maintained near
full deployment and we are actively exploring an attractive and diverse
pipeline of opportunities for refinancing events."

 

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 Mar 2023(2)  % of Par as of 31 Dec 2022(2)  31 Mar 2023 Gross MOIC  31 Mar 2023 Net MOIC
 Caliber Midstream(3)                        Infrastructure           Aug-19           4.0                                 4.0                                0.5                              0.6                           1.1                                                  44.71%                         40.72%                         0.27x                   0.21x
 Imperium3NY LLC                             Energy Transition        Apr-21           6.8                                 5.4                                6.7                              1.1                           7.8                                                  1.06(4)                        2.70(4)                        1.45x                   1.39x
 Blackbuck Resources LLC                     Infrastructure           Jun-21           11.5                                11.0                               2.6                              10.9                          13.5                                                 101.72%                        100.83%                        1.23x                   1.17x
 Streamline Innovations Inc.                 Infrastructure Services  Nov-21           13.8                                6.8                                1.2                              7.1                           8.4                                                  100.02%                        99.57%                         1.23x                   1.17x
 Harland & Wolff Group Holdings PLC          Infrastructure Services  Mar-22           14.6                                14.6                               1.4                              16.1                          17.5                                                 103.29%                        102.49%                        1.20x                   1.14x
 Seawolf Water Resources                     Services                 Sept-22          9.0                                 9.0                                0.3                              12.9                          13.2                                                 12.90(4)                       13.02(4)                       1.46x                   1.41x
 EPIC Propane Pipeline, LP                   Infrastructure           Sept-22          13.9                                13.9                               1.0                              13.9                          14.9                                                 99.16%                         99.08%                         1.07x                   1.01x
 Hoover Circular Solutions                   Infrastructure Services  Nov-22           13.7                                13.7                               0.6                              13.9                          14.4                                                 98.05%                         98.05%                         1.05x                   0.99x
 Clean Energy Fuels Corp                     Energy Transition        Dec-22           13.9                                13.9                               0.5                              13.9                          14.4                                                 99.08%                         99.00%                         1.04x                   0.98x
 Max Midstream                               Infrastructure           Dec-22           5.0                                 5.0                                0.1                              5.2                           5.2                                                  100.44%                        100.00%                        1.05x                   0.99x
                                                                                       $106.2                              $97.3                              $14.9                            $95.5                         $110.4                                                                                                             1.13x                   1.08x

                       Direct Lending Consolidated Portfolio Key Stats at Entry As of 31 March 2023
                       Weighted Avg. Entry Basis                                                                                                              97.5%
                       Weighted Avg. All-In Benchmark Rate at Entry                                                                                           4.6 p.a.
                       Weighted Avg. Floating Rate Spread at Entry                                                                                            7.1 p.a.
                       Weighted Avg. All-in Coupon at Entry                                                                                                   11.7 p.a.
                       Weighted Avg. Undrawn Spread at Entry                                                                                                  4.0 p.a.
                       Weighted Avg. Tenor at Entry                                                                                                           3.4 years
                       Weighted Avg. Call Premium at Entry                                                                                                    102.6
                       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)  31 Mar 2023 Gross MOIC  31 Mar 2023 Net MOIC
 Rocky Creek Resources      Exploration & Production      Jun-19           Dec-19            6.0                                 4.3                                4.9                              1.15 x                  1.10 x
 CIG Logistics              Infrastructure Services       Jan-20           Jan-20            8.7                                 8.7                                8.9                              1.02 x                  0.97 x
 Mallard Exploration        Exploration & Production      Nov-19           Apr-20            13.8                                6.8                                7.7                              1.13 x                  1.08 x
 Market Based               Multiple                      Aug-20           Nov-20            13.4                                13.4                               13.6                             1.01 x                  0.96 x
 Project Yellowstone        Infrastructure                Jun-19           Mar-21            5.8                                 5.8                                7.2                              1.23 x                  1.18 x
 Ascent Energy              Exploration & Production      Jun-19           Jun-21            13.3                                13.3                               16.1                             1.21 x                  1.16 x
 Pursuit Oil & Gas          Exploration & Production      Jul-19           Jun-21            12.3                                12.3                               15                               1.22 x                  1.16 x
 U.S. Shipping              Infrastructure Services       Feb-21           Aug-21            6.5                                 6.5                                7.3                              1.13 x                  1.07 x
 Aspen Power Partners       Infrastructure                Dec-20           Oct-21            6.9                                 3.4                                4.3                              1.27 x                  1.22 x
 Project Mariners           Infrastructure Services       Jul-19           Apr-22            13.2                                13.2                               17.6                             1.33x                   1.28 x
 Roaring Fork Midstream     Infrastructure                Mar-21           Jun-22            5.9                                 5.9                                6.9                              1.16x                   1.11 x
 FS Crude, LLC              Infrastructure                Mar-20           Sept-22           13.7                                13.7                               16.9                             1.23x                   1.18 x
 EPIC Propane Pipeline, LP  Infrastructure                Dec-19           Sept-22           14.8                                14.8                               19.6                             1.32x                   1.27 x
 Circulus Holdings, PBLLC   Infrastructure                Aug-21           Oct-22            12.3                                12.3                               14.0                             1.14x                   1.09 x
 Hoover Circular Solutions  Infrastructure Services       Oct-20           Nov-22            15.4                                15.4                               17.0                             1.10x                   1.05 x
                                                                                             $162.1                              $149.8                             $176.8                           1.18x                   1.13x

 

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
 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 31 March 2023 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 31 December
2022 and paid as of 31 March 2023.

 

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