REG - Riverstone Credit - Replacement RNS: Investment and Quarterly Update

Riverstone Credit Opportunities IncomeAnnouncement

21/10/2024 07:00

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RNS Number : 8579I  Riverstone Credit Opps. Inc PLC  21 October 2024

21 October 2024

REPLACEMENT RNS: INVESTMENT AND QUARTERLY UPDATE

The following amendment has been made to the "Investment and Quarterly Update"
announcement released at 07:00:05 on 18 October 2024 under RNS No 6820I:

The reference to a 20% repayment penalty borne on the aggregate additional $40
million super-priority loan tranche made by Riverstone Capital Partners to
Harland & Wolff has been corrected to refer to a repayment penalty of 25%.

 

All other details remain unchanged.

The full amended text is shown below.

 

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Riverstone Credit Opportunities Income

Investment and Quarterly Update

Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the
LSE-listed energy infrastructure and energy-transition credit investor,
announces its portfolio performance for the quarter ended 30 September 2024.

 

 Unaudited Net Asset Value

 

As at 30 September 2024, the unaudited net asset value per Ordinary Share,
including net revenue for the quarter, was $0.93 ($1.01: 30 June 2024).

 

Portfolio Summary and Key Performance Indicators

 

·    Portfolio of 100% floating rate, short duration, senior secured
loans, from investing in companies engaged in driving forward the energy
transition

·    32.5% NAV total return(5) achieved since IPO in May 2019

·    36.8 cents in dividends paid since inception(6)

 

 Portfolio Update

·    The movement in the Company's NAV was driven primarily by a reduction
in the value of its position in a loan made to Harland & Wolff
("H&W").  As announced on 19 July 2024,  Riverstone Credit Partners
funded an additional $25 million in a super-priority term loan to provide
H&W with adequate liquidity to run its strategic alternatives process.
This new tranche of debt was combined with $15 million of the previously
funded original loan to form a $40 million super-priority tranche, which bears
a repayment penalty of 25%.  While Riverstone's view of the fundamental value
of H&W has not changed materially since 30 June 2024, it is likely that
the super-priority tranche will be fully utilised prior to the culmination of
the strategic alternatives process and therefore the value of RCOI's original
loan (now a $100 million junior facility) has been subsequently marked
downward.  Riverstone expects the strategic alternatives process to conclude
in the fourth quarter of 2024 and will provide a further update to
shareholders in due course.

·    On 19 September 2024, the Company successfully realised its
Sustainability-Linked first lien term loan with Blackbuck Resources at a 17.3
percent gross IRR, a 13.2 percent net IRR, 1.46x gross MOIC and a 1.33x net
MOIC.

·    As announced on 10 September 2024, the Company also completed a
Compulsory Redemption of Ordinary Shares during the period equal to
approximately 25 per cent of the Company's Ordinary Shares in issue,
representing material positive progress in the Company's recently adopted
managed wind-down strategy.

 

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 Sept 2024(2)  % of Par as of 30 June 2024(2)  30 Sept 2024 Gross MOIC  30 Sept 2024 Net MOIC
 Caliber Midstream(3)                    Infrastructure           Aug-19           4.0                                 4.0                                0.6                              0.5                           1.1                                                  0.47(4)                         0.43(4)                         0.27x                    0.06x
 Imperium3NY LLC                         Energy Transition        Apr-21           6.8                                 5.4                                6.7                              0.0                           6.7                                                  0.01(4)                         0.01(4)                         1.25x                    1.11x

 Harland & Wolff Group Holdings PLC      Infrastructure Services  Mar-22           14.6                                14.6                               2.0                              10.1                          12.1                                                 9.28(4)                         15.53(4)                        0.83x                    0.72x
 Seawolf Water Resources                 Services                 Sept-22          9.0                                 9.0                                2.1                              11.6                          13.6                                                 11.58(4)                        11.85(4)                        1.51x                    1.43x

 Hoover Circular Solutions               Infrastructure Services  Nov-22           13.7                                13.7                               3.0                              14.4                          17.4                                                 99.74%                          100.17%                         1.27x                    1.19x
 Max Midstream                           Infrastructure           Dec-22           5.0                                 5.0                                1.3                              5.2                           6.5                                                  103.19%                         102.60%                         1.29x                    1.22x
 Streamline Innovations Inc.             Infrastructure Services  Jun-23           9.9                                 5.4                                1.1                              5.5                           6.6                                                  100.45%                         100.54%                         1.24x                    1.18x
                                                                                   $63.0                               $57.1                              $16.8                            $47.2                         $64.0                                                                                                                1.12x                    1.02x

Realised Portfolio

 Investment Name              Subsector                     Commitment Date  Realisation Date  Cumulative Committed Capital ($mm)  Cumulative Invested Capital ($mm)  Gross Realised Capital ($mm)(1)  30 Sept 2024 Gross MOIC  30 Sept 2024 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                   1.10 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                   1.10 x
 FS Crude, LLC                Infrastructure                Mar-20           Sept-22           13.7                                13.7                               16.9                             1.23 x                   1.1 2 x
 EPIC Propane Pipeline, LP    Infrastructure                Dec-19           Sept-22           14.8                                14.8                               19.6                             1.32 x                   1.20 x
 Circulus Holdings, PBLLC     Infrastructure                Aug-21           Oct-22            12.3                                12.3                               14.0                             1.14 x                    1.09 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
 EPIC Propane Pipeline, LP    Infrastructure                Sept -22         Apr-24            13.9                                13.9                               17.2                             1.24x                    1.18x
 Blackbuck Resources LLC      Infrastructure                Jun-21           Sept - 24         11.5                                11.0                               16.1                             1.46x                    1.32x
                                                                                               $215.2                              $195.5                             $234.8                           1.20x                    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.

 

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 30 September 2024 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 2024
and paid as of 30 September 2024.

( )

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