REG - Riverstone Credit - Quarterly Update and Notice of Results
25/01/2024 07:00
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RNS Number : 8159A Riverstone Credit Opps. Inc PLC 25 January 2024
25 January 2024
Riverstone Credit Opportunities Income
Quarterly Update and Notice of Results
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
December 2023, which saw deployment in energy transition investments and
attractive realisations.
Unaudited Net Asset Value
As at 31 December 2023, the unaudited net asset value per Ordinary Share,
including net revenue for the quarter, decreased 1.6% to $1.06 ($1.07: 30
September 2023). 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, enabling RCOI to deliver annual returns to shareholders of 8-10% from
investing in companies engaged in the energy transition
· 40.1% NAV total return(5) achieved since IPO in May 2019 (33.7% at 31
December 2022)
· 31.6 cents in dividends paid since inception(6)
Portfolio Update
· Successfully realised the Company's sustainability-linked first lien
term loan with Clean Energy Fuels Corp. at a 14.9 percent gross IRR and a 10.8
percent net IRR and 1.14x gross MOIC and a 1.10x net MOIC.
· Successfully amended and extended the Company's investment in
Blackbuck Resources. The maturity was extended to 31 December 2024, and
economic terms were adjusted for an estimated all-in yield to maturity of 17
percent to RCOI. This resulted in c. $0.6 million in profits being
distributed.
Notice of Full Year Results
The Company will announce its full year results for the year ended 31 December
2023 on Wednesday, 21 February 2024.
A virtual call for analysts will be held at 2pm UK time on the afternoon of
the announcement. A Q&A facility will also be made available. The
presentation will be hosted by Christopher Abbate and Jamie Brodsky,
Co-Founders of Breakwall Capital, the Company's sub-manager.
If you would like to attend, please contact Buchanan on +44 20 7466 5000 /
rcoi@buchanan.uk.com.
Reuben Jeffery III, Chairman of RCOI, commented:
"The RCOI portfolio once again performed strongly in Q4 2023. The Company
successfully realised one investment and closed an amendment for another,
resulting in sizeable returns to be distributed to investors. 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 NAV total return(5)
of 40.1% (33.7% at 31 December 2022) including 31.6 cents per share in
dividend distributions(6).
"The Board is pleased with the seamless transition to Breakwall Capital as
sub-manager and trust that the team will continue to perform the same
excellent portfolio management duties that they have executed so successfully
since listing. In light of the end of the investment period for Riverstone
Credit Partners II in December 2023 and the upcoming realisation election for
the Company on or around the date of its annual general meeting, the Board
will communicate next steps 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
advantageous positioning in the current environment. In addition to the
attractive financial returns delivered, we are proud of the fact that the
portfolio 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 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 Dec 2023(2) % of Par as of 30 Sep 2023(2) 31 Dec 2023 Gross MOIC 31 Dec 2023 Net MOIC
Caliber Midstream(3) Infrastructure Aug-19 4.0 4.0 0.6 0.4 1.0 35.78% 36.12% 0.25x 0.08x
Imperium3NY LLC Energy Transition Apr-21 6.8 5.4 6.7 0.0 6.7 0.01(4) 0.91(4) 1.25x 1.14x
Blackbuck Resources LLC Infrastructure Jun-21 11.5 11.0 5.2 9.7 14.9 98.19% 103.19% 1.35x 1.25x
Harland & Wolff Group Holdings PLC Infrastructure Services Mar-22 14.6 14.6 2.0 18.2 20.2 109.50% 106.92% 1.39x 1.31x
Seawolf Water Resources Services Sept-22 9.0 9.0 0.7 12.1 12.8 12.12(4) 13.06(4) 1.43x 1.38x
EPIC Propane Pipeline, LP Infrastructure Sept-22 13.9 13.9 2.3 13.9 16.3 99.52% 99.33% 1.17x 1.12x
Hoover Circular Solutions Infrastructure Services Nov-22 13.7 13.7 1.6 14.2 15.8 98.45% 98.32% 1.15x 1.11x
Max Midstream Infrastructure Dec-22 5.0 5.0 0.8 5.1 5.8 101.61% 101.38% 1.17x 1.13x
Streamline Innovations Inc. Infrastructure Services Jun-23 9.9 3.5 0.5 3.6 4.0 99.24% 99.20% 1.13x 1.11x
$88.4 $80.1 $20.4 $77.2 $97.6 1.22x 1.15x
Direct Lending Consolidated Portfolio Key Stats at Entry As of 31 December
2023
Weighted Avg. Entry Basis 97.5%
Weighted Avg. All-In Benchmark Rate at Entry 5.3 p.a.
Weighted Avg. Floating Rate Spread at Entry 7.0 p.a.
Weighted Avg. All-in Coupon at Entry 12.3 p.a.
Weighted Avg. Undrawn Spread at Entry 4.0 p.a.
Weighted Avg. Tenor at Entry 3.4 years
Weighted Avg. Call Premium at Entry 102.4
Security 100% Secured
Realised Portfolio
Investment Name Subsector Commitment Date Realisation Date Cumulative Committed Capital ($mm) Cumulative Invested Capital ($mm) Gross Realised Capital ($mm)(1) 31 Dec 2023 Gross MOIC 31 Dec 2023 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 1.21 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 1.12 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 LP.
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 December 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 September
2023 and paid as of 31 December 2023.
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