REG - Riverstone Credit - Q3 2023 Portfolio Valuations & Recent Activity

Riverstone Credit Opportunities IncomeAnnouncement

25/10/2023 07:15

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RNS Number : 1765R  Riverstone Credit Opps. Inc PLC  25 October 2023

25 October 2023

Riverstone Credit Opportunities Income

Quarterly Update

Full Deployment Sustained Resulting in Robust Q3 Performance

Targeted annual dividend returns of 8-10% on subscribed capital

 

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 30
September 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 dividend returns of 8-10% on subscribed capital.

 

Unaudited Net Asset Value

 

As at 30 September 2023, the unaudited net asset value per Ordinary Share,
including net revenue for the quarter ended 30 September, stayed stable
at $1.07 ($1.07: 30 June 2023). The stability was due to continued strong
performance by the unrealised portfolio.

 

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

·    39.8% NAV total return(5) since IPO in May 2019 (33.7% at 31 December
2022)

·    29.6 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 with a portfolio of accredited energy-transition focused
investments entirely through green or sustainability-linked structured loans.

·    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 September 2023.

Reuben Jeffery III, Chairman of RCOI, commented:

"The RCOI portfolio performed strongly in Q3 2023. 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 39.8% (33.7% at 31 December 2022) including 29.6 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 would also highlight that the
portfolio 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 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 30 Sep 2023(2)  % of Par as of 30 June 2023(2)  30 Sep 2023 Gross MOIC  30 Sep 2023 Net MOIC
 Caliber Midstream(3)                        Infrastructure           Aug-19           4.0                                 4.0                                0.5                              0.5                           1.0                                                  36.12%                         38.44%                          0.24x                   0.17x
 Imperium3NY LLC                             Energy Transition        Apr-21           6.8                                 5.4                                6.7                              0.9                           7.6                                                  0.91(4)                        0.91(4)                         1.42x                   1.34x
 Blackbuck Resources LLC                     Infrastructure           Jun-21           11.5                                11.0                               4.1                              10.3                          14.4                                                 103.19%                        102.57%                         1.31x                   1.23x
 Harland & Wolff Group Holdings PLC          Infrastructure Services  Mar-22           14.6                                14.6                               1.2                              17.9                          19.1                                                 106.92%                        106.11%                         1.31x                   1.24x
 Seawolf Water Resources                     Services                 Sept-22          9.0                                 9.0                                0.6                              13.1                          13.6                                                 13.06(4)                       12.99(4)                        1.51x                   1.44x
 EPIC Propane Pipeline, LP                   Infrastructure           Sept-22          13.9                                13.9                               1.9                              13.9                          15.8                                                 99.33%                         99.24%                          1.14x                   1.06x
 Hoover Circular Solutions                   Infrastructure Services  Nov-22           13.7                                13.7                               1.1                              14.2                          15.4                                                 98.32%                         98.18%                          1.12x                   1.04x
 Clean Energy Fuels Corp                     Energy Transition        Dec-22           13.9                                13.9                               1.4                              13.9                          15.3                                                 99.39%                         99.47%                          1.11x                   1.03x
 Max Midstream                               Infrastructure           Dec-22           5.0                                 5.0                                0.4                              5.2                           5.6                                                  101.38%                        100.84%                         1.13x                   1.05x
 Streamline Innovations Inc.                 Infrastructure Services  Jun-23           9.9                                 3.5                                0.3                              3.6                           3.8                                                  99.20%                         99.13%                          1.08x                   1.06x
                                                                                       $102.3                              $94.0                              $18.2                            $93.5                         $111.7                                                                                                              1.19x                   1.11x

                       Direct Lending Consolidated Portfolio Key Stats at Entry As of 30 September
                       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 Sep 2023 Gross MOIC  30 Sep 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 September 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 30 June 2023
and paid as of 30 September 2023.

 

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