REG - Riverstone Credit - Q2 2023 Portfolio Valuations & Recent Activity

Riverstone Credit Opportunities IncomeAnnouncement

21/07/2023 07:00

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RNS Number : 7247G  Riverstone Credit Opps. Inc PLC  21 July 2023

21 July 2023

Riverstone Credit Opportunities Income

Quarterly Update

Full Deployment Sustained Resulting In Robust Q2 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 ended 30
June 2023, in which full deployment in energy transition investments now means
that shareholders will benefit from the portfolio's high earnings power and
targeted annual returns of 8-10%, with current annual dividend yield(7) of
10%.

 

Unaudited Net Asset Value

 

The unaudited net asset value per Ordinary Share, including net revenue, for
the quarter ended 30 June 2023, increased by 1.4% to $1.07 ($1.06: 31 March
2023). This increase was principally due to continued strong performance by
the unrealised portfolio and the successful refinancing and amendment of the
Company's investment in Streamline Innovations Inc.

 

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 investing in companies engaged in the energy transition

·    37.8% NAV total return(5) since IPO in May 2019 (33.7% at 31 December
2022)

·    27.6 cents in dividends paid since inception(6)

Portfolio Update

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

·    During Q2 2023, the Company amended and extended its investment in
Streamline Innovations and realised c. $2.0 million of profits at closing of
the amendment and extension resulting in a 24 percent gross IRR (19 percent
net IRR) and a 1.3x gross MOIC (1.2x net MOIC) of the initial investment in
Streamline Innovations. As part of this amendment and extension closing, the
facility was upsized to $55.0 million, the maturity was extended to December
2026, and economic terms were adjusted for an estimated all-in yield to
maturity of 13 percent to RCOI.  RCOI's allocation to the loan was $9.9
million.

·    Based on current portfolio commitments, as well as the addition of
the revolving credit facility in Q4 2022, the Company is nearly fully invested
as of 30 June 2023.

Reuben Jeffery III, Chairman of RCOI, commented:

"The RCOI portfolio performed strongly in Q2 2023, with the successful
refinancing and upsizing of the Company's investment in Streamline Innovations
Inc.. 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 the elevated value for our shareholders in the
rapidly changing macro environment.

Since launch in May 2019, the Company has now delivered a total NAV return(5)
of 37.8% (33.7% at 31 December 2022) including 27.6 cents per share in
dividend distributions(6)."

 

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

"We continue to be encouraged by the Company's strong performance and its
advantageous positioning in the current environment. In addition to the
attractive financial returns delivered, we also note that the portfolio now
consists entirely of Green and Sustainability-Linked loans that contribute
positively towards the energy transition across a wide variety of
applications. The Company's near complete deployment in such investments means
that shareholders will benefit from full exposure to the high earnings power
of the portfolio's energy transition investments, which should further
supplement available income to deliver the targeted annual returns of 8-10%,
with current annual dividend yield(7) of 10%."

 

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 June 2023(2)  % of Par as of 31 Mar 2023(2)  30 June 2023 Gross MOIC  30 June 2023 Net MOIC
 Caliber Midstream(3)                        Infrastructure           Aug-19           4.0                                 4.0                                0.5                              0.5                           1.0                                                  38.44%                          44.71%                         0.25x                    0.18x
 Imperium3NY LLC                             Energy Transition        Apr-21           6.8                                 5.4                                6.7                              0.9                           7.6                                                  0.91(4)                         1.06(4)                        1.42x                    1.36x
 Blackbuck Resources LLC                     Infrastructure           Jun-21           11.5                                11.0                               3.0                              11.0                          14.0                                                 102.57%                         101.72%                        1.27x                    1.20x
 Harland & Wolff Group Holdings PLC          Infrastructure Services  Mar-22           14.6                                14.6                               1.2                              17.3                          18.5                                                 106.11%                         103.29%                        1.27x                    1.21x
 Seawolf Water Resources                     Services                 Sept-22          9.0                                 9.0                                0.4                              13.0                          13.4                                                 12.99(4)                        12.90(4)                       1.49x                    1.43x
 EPIC Propane Pipeline, LP                   Infrastructure           Sept-22          13.9                                13.9                               1.4                              13.9                          15.3                                                 99.24%                          99.16%                         1.10x                    1.04x
 Hoover Circular Solutions                   Infrastructure Services  Nov-22           13.7                                13.7                               0.7                              14.2                          14.9                                                 98.18%                          98.05%                         1.08x                    1.02x
 Clean Energy Fuels Corp                     Energy Transition        Dec-22           13.9                                13.9                               1.0                              13.9                          14.9                                                 99.47%                          99.08%                         1.08x                    1.01x
 Max Midstream                               Infrastructure           Dec-22           5.0                                 5.0                                0.2                              5.2                           5.4                                                  100.84%                         100.44%                        1.09x                    1.02x
 Streamline Innovations Inc.                 Infrastructure Services  Jun-23           9.9                                 3.5                                0.1                              3.6                           3.6                                                  99.13%                          99.13%                         1.03x                    1.02x
                                                                                       $102.3                              $94.0                              $15.3                            $93.4                         $108.7                                                                                                              1.16x                    1.09x

                       Direct Lending Consolidated Portfolio Key Stats at Entry As of 30 June 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)  30 June 2023 Gross MOIC  30 June 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
 Streamline Innovations Inc.  Infrastructure Services       Nov-21           Jun-23            13.8                                6.9                                8.9                              1.29x                    1.23x
                                                                                               $175.9                              $156.7                             $185.7                           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
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 30 June 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 March 2023
and paid as of 30 June 2023.

(7) Reflects dividends paid in the fiscal year from 30 June 2022 to 30 June
2023.

 

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