REG - Riverstone Credit - Refinancing & Upsizing of Streamline Innovations

Riverstone Credit Opportunities IncomeAnnouncement

13/07/2023 13:30

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RNS Number : 9649F  Riverstone Credit Opps. Inc PLC  13 July 2023

 

13 July 2023

Riverstone Credit Opportunities Income Plc

Successful Refinancing & Upsizing of Streamline Innovations

Realisation of Existing RCOI Streamline Innovations Loan with $2.0 Million
Gross Profit

Refinancing Realized 24% Gross IRR

Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the
LSE-listed energy infrastructure and energy-transition credit investor, is
pleased to announce a successful amendment and extension of the Company's
investment in Streamline Innovations (the "Borrower"), a leader in
environmentally-advanced treatment solutions for the removal of hydrogen
sulfide (H2S) from energy, renewable fuels, wastewater, and industrial
processes.

RCOI realized 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. With this upsize, RCOI remains nearly fully invested, with the
portfolio comprising almost exclusively green loans and sustainability-linked
loans.

In November 2021, RCOI participated in a $20.0 million first lien delayed-draw
term loan, of which $6.9 million was committed by RCOI. In May 2022, RCOI
participated in a $25.0 million upsize for a $45.0 million first lien
delayed-draw term loan, bringing RCOI's total commitment to $13.8 million. The
facility was structured as a green loan with Sustainable Fitch providing a
Second Party Opinion ("SPO"). The SPO verifies the facility's alignment to the
LSTA Green Loan Principles with the transaction being compliant with the four
pillars of the LSTA Green Loan Principles and aligned with the LSTA category
of pollution and prevention.

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.
 Additionally, as part of the amendment, RCOI's allocation to the loan was
reduced from $13.8 million to $9.9 million as the result of the investment
manger's allocation policy which aims to allocate each deal based on the
available capital in each fund being invested.

Christopher Abbate, Co-Head of Riverstone Credit, the Company's Investment
Manager said:

"We are pleased to extend this investment and assist the borrower with
additional capital for continued growth to deliver environmental
sustainability benefits to their customers. Since our initial investment in
Streamline, the borrower has performed well and achieved substantial growth
with over 40 H2S treating units deployed today. Streamline's green solutions
allowed its customers to avoid over 33 million pounds of sulfur dioxide
emissions in 2022, representing a more than 40% increase over 2021.

"RCOI is now nearly fully deployed in an attractive and diversified portfolio
of independently accredited green and sustainability-linked loans that support
the Company's target annual dividend yield of 8%, paid through quarterly
distributions. In a challenging capital markets environment, we believe that
this level of income is very attractive to investors who want a lower risk
exposure to the energy transition."

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
 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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