REG - Riverstone Credit - Refinancing & Upsizing of Hoover CS Investment

Riverstone Credit Opportunities IncomeAnnouncement

01/12/2022 07:00

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RNS Number : 1718I  Riverstone Credit Opps. Inc PLC  01 December 2022

 

1 December 2022

Riverstone Credit Opportunities Income Plc

Successful Refinancing & Upsizing of Hoover CS Investment

Realisation of Existing RCOI Hoover CS Loan with $1.6 Million Gross Profit

Riverstone Credit Opportunities Income ("RCOI"), the LSE-listed energy
infrastructure and energy-transition credit investor, is pleased to announce a
successful realization of the Company's investment in Hoover CS (the
"Borrower" or the "Company") as well as an upsized investment in a new
sustainability-linked first lien term loan (the "Term Loan") for the Borrower.
With this upsize, RCOI is now nearly fully invested, with the portfolio almost
exclusively green loans and sustainability-linked loans.

Hoover CS, a leading provider of sustainable packaging and fleet management
solutions, is paving the way for customers across the chemical, refining and
general industrial-end markets to move away from single-use containers.
Through its large rental fleet of reusable liquid and dry intermediate bulk
containers and ISO tanks, combined with integrity management and fleet
management services, Hoover CS's sustainable packaging solutions facilitate
circularity across the supply chain, yielding an optimized environmental
footprint through reduced plastic, water conservation, and lower greenhouse
gas emissions.

In October 2020, RCOI committed $7.4 million to the Borrower's previous $225
million first lien term loan as part of a comprehensive recapitalization of
the business also involving a $35 million second lien term loan and over $90
million of additional private equity investment. Post-closing, RCOI received
repayments totaling $3.6 million throughout 2021 and 2022 bringing RCOI's
commitment down to $3.8 million. On 1 September 2022, RCOI was able to
opportunistically purchase $8.0 million of incremental first lien term loan
bringing RCOI's previous commitment up to $11.7 million. On 30 November 2022,
all of the Borrower's outstanding debt was refinanced by the new $160 million
sustainability-linked, first lien term loan due November 2026. As part of the
new deal allocations, RCOI's commitment was further upsized to $13.7 million
and the expected returns are in line with the initial investment.

As part of the closing, the new sustainability-linked, first lien term loan
received a secondary party opinion ("SPO") from Sustainable Fitch to confirm
that the terms are structured in accordance with the LSTA
Sustainability-Linked Loan ("SLL") Principles and aligned with all five
pillars. The new credit facility successfully links three key performance
indicators ("KPIs") to potential loan price increases for non-compliance. The
three KPIs are linked to 1) the percent of electricity the Borrower sources
from non-fossil fuel energy sources, 2) a reduction of waste water disposal,
and 3) the precent of bulk chemicals purchased by Hoover CS that is shipped in
sustainable packaging.

Danny Flannery, Managing Director of Riverstone Credit, the Company's
Investment Manager said:

"Hoover CS has a demonstrated track record of helping its customers across
multiple end markets improve environmental performance and the circularity of
their supply chains, and we are pleased to partner with them on their next
phase of growth. This investment is in-line with our stated yield target and
focus on sustainability-linked loans.  It also means that RCOI is now almost
fully invested."

For Riverstone Credit Opportunities Income Plc:

Adam
Weiss
                +1 212 271 2953

Media Contacts:
 Buchanan
 Helen Tarbet    Tel: +44 (0) 20 7466 5109
 Henry Wilson    Tel: +44 (0) 20 7466 5111
 Jon Krinks      Tel: +44 (0) 20 7466 5199
 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 is strategically repositioning towards 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.

 

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