REG - Riverstone Credit - Q1 2024 Portfolio Update & Recent Activity

Riverstone Credit Opportunities IncomeAnnouncement

19/04/2024 07:00

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RNS Number : 2445L  Riverstone Credit Opps. Inc PLC  19 April 2024

19 April 2024

Riverstone Credit Opportunities Income

Quarterly Update

Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the
LSE-listed energy infrastructure and energy-transition credit investor, is
pleased to announce a robust portfolio performance for the quarter ended 31
March 2024.

 

Portfolio Summary and Key Performance Indicators

 

·    Portfolio of 100% floating rate, short duration, senior secured
loans, enabling RCOI to deliver annual returns to shareholders of 8-10% from
investing in companies engaged in the energy transition

·    43.2% NAV total return(5) achieved since IPO in May 2019 (34.3% at 31
March 2023)

·    34.1 cents in dividends paid since inception(6)

Portfolio Update

·    Against a backdrop of strong energy market performance, the global
drive towards decarbonisation and the Company's unique focus on short duration
lending, RCOI 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.

 

·    On 4 April 2024, the Company successfully realised its
Sustainability-Linked first lien term loan with EPIC Propane at a 16.9 percent
gross IRR and a 12.8 percent net IRR and 1.24x gross MOIC and a 1.18x net
MOIC.

 

Unaudited Net Asset Value

 

As at 31 March 2024, the unaudited net asset value per Ordinary Share,
including net revenue for the quarter, remained stable at $1.06 ($1.06: 31
December 2023), reflecting continued strong performance by the unrealised
portfolio.

 

Reuben Jeffery III, Chairman of RCOI, commented:

"The RCOI portfolio once again performed strongly in Q1 2024. The Company
continues to be a beneficiary of the current interest rate environment with a
strategy focused on floating rate, short duration loans that are designed to
capture elevated value for our shareholders in the current macro environment.

"Since launch in May 2019, the Company has delivered a NAV total return(5) of
43.2% (34.3% at 31 March 2023) including 34.1 cents per share in dividend
distributions(6).

"The Board is pleased with the seamless transition to Breakwall Capital as
sub-manager and note that the portfolio management team is continuing to
perform to the same high standard as they have always done since RCOI's
listing.

"The Board remains focused on the upcoming AGM in May 2024, and we are
engaging with shareholders to understand their views regarding the future of
the Company. Our priority remains optimising the portfolio to ensure long-term
value creation for our shareholders and will provide further details in due
course."

 

 

Christopher Abbate and Jamie Brodsky, Co-Founders of Breakwall Capital, the
Company's sub-manager, added:

"We continue to be encouraged by the Company's strong performance and its
highly advantageous positioning in the current environment. In addition to the
attractive financial returns delivered, we are pleased that the portfolio now
consists entirely of Green and Sustainability-Linked loans that contribute
positively towards the energy transition across a wide range of applications.
The Company is focused, as ever, on providing strong returns and dividends to
investors in order to deliver the targeted annual dividend returns of 8-10% on
subscribed capital."

 

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 31 Mar 2024(2)  % of Par as of 31 Dec 2023(2)  31 Mar 2024 Gross MOIC  31 Mar 2024 Net MOIC
 Caliber Midstream(3)                        Infrastructure           Aug-19           4.0                                 4.0                                0.6                              0.4                           1.0                                                  33.52%                         35.78%                         0.25x                   0.07x
 Imperium3NY LLC                             Energy Transition        Apr-21           6.8                                 5.4                                6.7                              0.0                           6.7                                                  0.01(4)                        0.01(4)                        1.25x                   1.13x
 Blackbuck Resources LLC                     Infrastructure           Jun-21           11.5                                11.0                               6.1                              9.2                           15.3                                                 98.87%                         98.19%                         1.39x                   1.27x
 Harland & Wolff Group Holdings PLC          Infrastructure Services  Mar-22           14.6                                14.6                               2.0                              18.9                          20.9                                                 18.60(4)                       18.10(4)                       1.44x                   1.35x
 Seawolf Water Resources                     Services                 Sept-22          9.0                                 9.0                                1.2                              12.1                          13.3                                                 12.09(4)                       12.12(4)                       1.47x                   1.41x
 EPIC Propane Pipeline, LP                   Infrastructure           Sept-22          13.9                                13.9                               2.8                              14.4                          17.2                                                 103.00%                        99.52%                         1.24x                   1.18x
 Hoover Circular Solutions                   Infrastructure Services  Nov-22           13.7                                13.7                               2.1                              14.2                          16.3                                                 98.59%                         98.45%                         1.19x                   1.13x
 Max Midstream                               Infrastructure           Dec-22           5.0                                 5.0                                0.9                              5.1                           6.1                                                  102.09%                        101.61%                        1.21x                   1.16x
 Streamline Innovations Inc.                 Infrastructure Services  Jun-23           9.9                                 5.4                                0.6                              5.4                           6.0                                                  99.29%                         99.24%                         1.12x                   1.09x
                                                                                       $88.4                               $82.0                              $23.0                            $79.8                         $102.8                                                                                                             1.25x                   1.18x

                       Direct Lending Consolidated Portfolio Key Stats at Entry As of 31 March 2024
                       Weighted Avg. Entry Basis                                                                                                              97.5%
                       Weighted Avg. All-In Benchmark Rate at Entry                                                                                           5.3 p.a.
                       Weighted Avg. Floating Rate Spread at Entry                                                                                            7.0 p.a.
                       Weighted Avg. All-in Coupon at Entry                                                                                                   12.3 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                                                                                                    102.4
                       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 2024 Gross MOIC  31 Mar 2024 Net MOIC
 Rocky Creek Resources        Exploration & Production      Jun-19           Dec-19            6.0                                 4.3                                4.9                              1.15 x                  1.13 x
 CIG Logistics                Infrastructure Services       Jan-20           Jan-20            8.7                                 8.7                                8.9                              1.02 x                  1.02 x
 Mallard Exploration          Exploration & Production      Nov-19           Apr-20            13.8                                6.8                                7.7                              1.13 x                  1.12 x
 Market Based                 Multiple                      Aug-20           Nov-20            13.4                                13.4                               13.6                             1.01 x                  1.00 x
 Project Yellowstone          Infrastructure                Jun-19           Mar-21            5.8                                 5.8                                7.2                              1.23 x                  1.16 x
 Ascent Energy                Exploration & Production      Jun-19           Jun-21            13.3                                13.3                               16.1                             1.21 x                  1.13 x
 Pursuit Oil & Gas            Exploration & Production      Jul-19           Jun-21            12.3                                12.3                               15                               1.22 x                  1.14 x
 U.S. Shipping                Infrastructure Services       Feb-21           Aug-21            6.5                                 6.5                                7.3                              1.13 x                  1.11 x
 Aspen Power Partners         Infrastructure                Dec-20           Oct-21            6.9                                 3.4                                4.3                              1.27 x                  1.24 x
 Project Mariners             Infrastructure Services       Jul-19           Apr-22            13.2                                13.2                               17.6                             1.33 x                  1.22 x
 Roaring Fork Midstream       Infrastructure                Mar-21           Jun-22            5.9                                 5.9                                6.9                              1.16 x                  1.11 x
 FS Crude, LLC                Infrastructure                Mar-20           Sept-22           13.7                                13.7                               16.9                             1.23 x                  1.13 x
 EPIC Propane Pipeline, LP    Infrastructure                Dec-19           Sept-22           14.8                                14.8                               19.6                             1.32 x                  1.21 x
 Circulus Holdings, PBLLC     Infrastructure                Aug-21           Oct-22            12.3                                12.3                               14.0                             1.14 x                  1.10 x
 Hoover Circular Solutions    Infrastructure Services       Oct-20           Nov-22            15.4                                15.4                               17.0                             1.10 x                  1.01 x
 Streamline Innovations Inc.  Infrastructure Services       Nov-21           Jun-23            13.8                                6.9                                8.9                              1.29 x                  1.22 x
 Clean Energy Fuels Corp      Energy Transition             Dec-22           Dec-23            13.9                                13.9                               15.7                             1.14 x                  1.10 x
                                                                                               $189.8                              $170.6                             $201.4                           1.18x                   1.12x

 

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.

 

As previously announced, on January 2, Riverstone Holdings LLC, and their
affiliate Riverstone Investment Group (collectively, "Riverstone") entered
into a sub management agreement for RCOI with Breakwall Capital LLC.
Breakwall is an independent asset manager regulated by the SEC as a Registered
Investment Advisor. It is owned and operated by the former members of the
Riverstone Credit Partners team.

 

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 MFC LLC equity, Caliber Midstream Term Loan & 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 2024 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
2023 and paid as of 31 March 2024.

 

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