REG - Riverstone Credit - Successful Sale of Harland & Wolff

Riverstone Credit Opportunities IncomeAnnouncement

28/01/2025 08:30

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RNS Number : 9426U  Riverstone Credit Opps. Inc PLC  28 January 2025

 

 

28 January 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Riverstone Credit Opportunities Income

Successful Sale of Harland & Wolff

Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the
LSE-listed energy infrastructure and energy-transition credit investor,
announces that following an extensive marketing process run by Rothschild
& Co, the business and assets of the Harland & Wolff Group, including
all 4 operating yards in Belfast, Appledore, Methil and Arnish, have been sold
via a pre-pack administration to its largest customer, Navantia UK. We are
very pleased to note that more than 1,000 jobs were secured as a result of
this sale.

The assets have been sold for a cash consideration of £69.9m, as well as the
waiving of the debt of  £20m  by Navantia UK. Exclusivity was agreed in
October 2024, and benefited from an agreement to share pari passu proceeds
from a sale on a 50/50 basis to recover that debt funding. As part of the
transaction, those rights were waived.

Purchase price consideration along with cash left in the business, after
administrative and deal related expenses, will result in net proceeds of c.
 £70m  to Riverstone Credit Partners ("RCP") and affiliated funds, including
RCOI. The Administrators intend on making an initial distribution to RCP of
c. £44m  in the coming days and have estimated future distributions that will
total c. £ 26 m over the coming months.

In parallel to the process to sell the operating yards, Rothschild & Co
has also run a process to solicit interest in acquiring Harland & Wolff's
Islandmagee Gas Storage project. Once constructed and operational, Islandmagee
salt dome caverns will have the capacity to hold around 500 million cubic
meters of low carbon gas and/or hydrogen, increasing UK gas storage capacity
by c. 33%. Given the shortfall on amounts owed and security held over the
entirety of Harland & Wolff, RCP and affiliated funds are the equitable
owner of Islandmagee. Over the coming days and weeks, RCP will work with its
advisors to assess the optimum strategy and likely timing to maximise the
value of this highly strategic asset.

Taking into account the proceeds from the Harland & Wolff sale, existing
cash balances and the latest estimated valuation of Islandmagee, RCOI confirms
a modest reduction on the 30 September independent valuation of its investment
of c. 4%. We will update shareholders with additional information regarding
distributions and other material developments in the coming weeks.

The transaction was supported by independent advisors: Teneo, who assisted
with restructuring advisory and government relations, Rothschild & Co,
Bracewell LLP, and Stephenson Harwood LLP.

 

 

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, Riverstone Investment Group LLC, the SEC registered
investment advisor to RCOI, entered into a sub-advisory agreement with
Breakwall Investment Advisor LLC (an SEC registered investment advisor), as
sub-advisor, to provide investment related services to RCOI on January 1,
2024.  Breakwall Capital LP is an independent asset manager that is owned and
operated by certain 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.

 

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