Riverstone Credit - Investment and Quarterly Update

Riverstone Credit Opportunities Income

22/04/2025 07:00

RNS Number : 6369F

Riverstone Credit Opps. Inc PLC

22 April 2025

 

22 April 2025

LEI: 213800KSL6C11YUB3H11

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

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 31 March 2025.

 

Portfolio Highlights & Expected Capital Return

NAV/share was $0.88 on 31 March 2025, a decline of $0.04/share over the quarter. This change was largely driven by the Company's investments in Harland & Wolff, Seawolf and Max Midstream. 

The Harland & Wolff administration continues to move forward with an expected distribution of an additional $3.1 million by the end of April.  While the amount being distributed is slightly higher than expected, the total amounts available to the Company on 31 March 2025 are slightly lower than expected as of 31 December 2024. The total reduction in the value of this investment was $1.4 million, or approximately $0.02/share. The key components of the adjustment include the write-off of interest accrued (which is a non-cash adjustment), additional accrued interest for the super-priority facility, and an increased reserve retained to support the development of the Islandmagee project. These were partially offset by favorable foreign exchange movements.  The Company is expecting one final distribution from the Administration in the amount of $1.1million (based on exchange rates as of 31 March 2025).

Seawolf's business remains strong, albeit facing uncertainty given recent market disruptions. Trailing earnings for the first quarter were lower, however, leading to a modest reduction in the value of the equity portion of the investment. The total reduction in the value of this investment was $0.4 million, or $0.01/share.

Max Midstream is working through a number of different refinancing options and requested more time from the administrative agent, on behalf of the Company and other RCP lenders, to execute these plans. Accordingly, the lenders agreed to extend the loan to Max Midstream until the end of June 2025. In connection with the extension, a 2% per month extension fee was assessed and certain provisions within the loan agreement strengthened. Because the extension was pending on 31 March 2025, the loan was initially marked down from its valuation as of 31 December 2024. The total reduction in the value of this investment was $0.2 million or less than $0.01/share. The payment of the extension fee to the Company (equal in aggregate to $0.3 million) subsequent to the quarter end is expected to offset this mark down. The Company remains confident the loan will be repaid in full, albeit over a longer timeframe than previously anticipated.

Due to higher than normal expenses in the quarter ending 31 March 2025, it is anticipated that the Company will only be able to pay a nominal dividend for this quarter.

However, once the Company has received its expected cash payment from Harland & Wolff, it anticipates returning cash to Shareholders equal to approximately $16.0-17.0 million via a mandatory Share redemption. The Company will make a further announcement in due course.

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

·    29.5% NAV total return5 achieved since IPO in May 2019

·    38.8 cents in dividends paid since inception6

 

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 31 Mar 20252
% of Par as of 31 Dec 20242
31 Mar 2025 Gross MOIC
31 Mar 2025 Net MOIC
Caliber Midstream3
Infrastructure
Aug-19
4.0
4.0
0.6
0.5
1.1
0.514
0.514
0.28x
0.05x
Imperium3NY LLC
Energy Transition
Apr-21
6.8
5.4
6.7
0.0
6.7
0.014
0.014
1.25x
1.08x
Harland & Wolff Group Holdings PLC
Infrastructure Services
Mar-22
14.6
14.6
2.1
8.5
10.6
8.494
8.924
0.73x
0.60x
Seawolf Water Resources
Services
Sept-22
9.0
9.0
2.3
10.9
13.2
10.904
11.324
1.47x
1.36x
Hoover Circular Solutions
Infrastructure Services
Nov-22
13.7
13.7
3.8
14.4
18.2
99.88%
99.81%
1.33x
1.23x
Max Midstream
Infrastructure
Dec-22
5.0
5.0
1.6
5.0
6.6
99.78%
104.30%
1.32x
1.22x
Streamline Innovations Inc.
Infrastructure Services
Jun-23
9.9
5.4
1.5
5.5
7.0
100.67%
100.64%
1.30x
1.23x
$63.0
$57.1
$18.7
$44.8
$63.5
1.11x
0.99x

Realised Portfolio

Investment Name
Subsector
Commitment Date
Realisation Date
Cumulative Committed Capital ($mm)
Cumulative Invested Capital ($mm)
Gross Realised Capital ($mm)1
31 Mar 2025 Gross MOIC
31 Mar 2025Net 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
1.13 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
1.09 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:

Burson Buchanan

Helen Tarbet
Henry Wilson
Verity Parker
Tel: +44 (0) 20 7466 5109
Tel: +44 (0) 20 7466 5111
Tel: +44 (0) 20 7466 5197
Email: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/.

 

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.

 

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 31 March 2025 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 31 March 2025 and paid as of 31 March 2025.

 

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