REG - Riverstone Credit - 2Q21 Portfolio Valuations & Recent Activity

Riverstone Credit Opportunities IncomeAnnouncement

23/07/2021 07:05

RNS Number : 1930G
  
Riverstone Credit Opps. Inc PLC
  
23 July 2021
  
 

Riverstone Credit Opportunities Income Announces 2Q21 Quarterly Portfolio Valuations & Recent Activity
London, UK (23 July 2021) - Riverstone Credit Opportunities Income ("RCOI") announces its quarterly portfolio summary as of 30 June 2021, inclusive of updated quarterly unaudited fair market valuations:
 
As of 30 June 2021, the unaudited net asset value per Ordinary Share, including net revenue for the quarter ended 30 June, was $1.03.
 
Business Update
In June 2021, RCOI launched a new webcast, called "Energy Expansion", that will be focused on important themes within our sector and include interviews with executives and thought leaders in the industry. Two interviews, one with a community solar CEO and one with counsel discussing sustainable finance, have been completed to date with others expected in the near future. You can find the interviews here: https://www.riverstonecoi.com/market/energy-expansion-webcast 
 
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 June 20212


Gross MOIC




Project Mariners


Infrastructure Services


Jul-19


13.2


13.2


6.4


10.5


16.9


107.43%


1.25 x




Caliber Midstream


Midstream


Aug-19


3.4


3.4


0.4


2.0


2.4


49.07%


0.71 x




Caliber Midstream Revolver


Midstream


Apr-21


0.6


0.6


0.0


0.6


0.6


91.75%


1.01 x




Epic Propane Pipeline


Midstream


Dec-19


14.8


14.8


1.9


15.4


17.3


101.33%


1.17 x




FS Crude


Midstream


Mar-20


13.7


13.7


9.1


6.7


15.8


98.89%


1.15 x




Hoover Circular Solutions


Infrastructure Services


Oct-20


7.4


7.4


4.0


4.0


8.0


100.64%


1.08 x




Aspen Power Partners


Energy Transition


Dec-20


6.9


3.4


0.3


3.6


3.9


103.03%


1.16 x




U.S. Shipping


Midstream


Feb-21


6.5


6.5


0.4


6.5


6.9


100.35%


1.07 x




Roaring Fork Midstream


Midstream


Mar-21


5.9


2.7


0.2


2.8


3.0


99.81%


1.11 x




Imperium3NY LLC


Energy Transition


Apr-21


6.8


5.4


1.3


4.8


6.1


109.90%


1.14 x




Blackbuck Resources LLC


Infrastructure Services


Jun-21


9.9


8.9


0.2


8.9


9.0


98.50%


1.02 x
















$89.0 


$79.8 


$24.2 


$65.7 


$89.9 






1.12 x







 
Realised Portfolio



Investment Name


Subsector


Commitment Date


Realisation Date


Cumulative Committed Capital ($mm)


Cumulative Invested Capital ($mm)


Gross Realised Capital ($mm)1


Gross MOIC2




Rocky Creek Resources


Exploration & Production


Jun-19


Dec-19


6.0


4.3


4.9


1.15 x




CIG Logistics


Infrastructure Services


Jan-20


Jan-20


8.7


8.7


8.9


1.02 x




Mallard Exploration


Exploration & Production


Nov-19


Apr-20


13.8


6.8


7.7


1.13 x




Market Based


Multiple


Aug-20


Nov-20


13.4


13.4


13.6


1.01 x




Project Yellowstone


Midstream


Jun-19


Mar-21


5.8


5.8


7.2


1.23 x




Ascent Energy


Exploration & Production


Jun-19


Jun-21


13.3


13.3


16.1


1.21 x




Pursuit Oil & Gas


Exploration & Production


Jul-19


Jun-21


12.3


12.3


15.0


1.22 x




















$73.4 


$64.6 


$73.4 


1.14 x



 
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.
 



Direct Lending Consolidated Portfolio Key Stats at Entry As of 30 June 20214




Weighted Avg. Entry Basis 


97.1% 




Weighted Avg. All-in Coupon at Entry 


9.34 p.a.




Weighted Avg. Undrawn Spread at Entry 


4.4% p.a.




Weighted Avg. Tenor at Entry 


3.0 years 




Weighted Avg. Call Premium at Entry 


108.5




Security 


100% Secured 




Coupon Type 


100% Floating Rate 



 
Manager Outlook
§  The second quarter continued to see an uptick in oil prices and strengething in supply and demand fundamentals in the market. The portfolio has continued to show resiliency throughout the past year and RCOI is well positioned to capitalise on the increasing market fundamentals through an opportunistic investment strategy and diversified portfolio.
 §  The Investment Manager believes the focus on infrastructure, infrastructure services and energy transition investment opportunities will provide downside protection and allow the portfolio to continue to generate positive returns and income for shareholders. 
 




 
Reuben Jeffery III, Chairman of RCOI, commented:
"Given the vastly improving commodity sector and strong realisations in the first half of 2021, we remain optimistic about RCOI's ability to generate value for shareholders. The Company currently has a net asset value per share of $1.03 and has returned over 17 cents per share to investors since the IPO".
Christopher Abbate and Jamie Brodsky, Co-Founders of Riverstone Credit, added:
"Following the Q2 2021 realisations in Ascent Energy and Pursuit Oil & Gas, we are very pleased with our overall performance in the upstream sector, as well as the fact there is no upstream exposure today. We believe there remains a very attractive pipeline of investment opportunities within the infrastructure, infrastructure services and energy transition sectors, which will allow us continued consistency of yield and principal preservation across our portfolio. 
Although RCOI's position in the Caliber Midstream Term Loan was marked down in Q2 2021 as a result of their largest customer declaring bankruptcy in March of 2021, Riverstone remains active in its conversations with the Company, remain confident in our investment and believe an improving macro environment will strengthen the financial health of Caliber in 2H 2021."
About Riverstone Credit Opportunities Income Plc:
 
RCOI seeks to generate consistent Shareholder returns predominantly in the form of income distributions, principally by making senior secured loans to small and middle-market energy companies, which span conventional energy as well as low carbon and renewable sources. The investment strategy is predicated on asset-based lending, with conservative loan-to-value ratios and structural protective features to mitigate risk. The Company will invest broadly across energy subsectors globally, with a primary focus on infrastructure businesses and going forward those with de-carbonization strategies in North America. RCOI intends to create a diversified portfolio across basins, commodities, technologies and end-markets to provide natural synergies and hedges that could enhance the overall stability of the portfolio.
For further details, see 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.
 
Media Contacts
 
For Riverstone Credit Opportunities Income Plc:
 
Jingcai Zhu
+1 212 271 6261





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.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
  END
 
 
PFURTMATMTTTBTB