TIDMRCOI

RNS Number : 1603Z

Riverstone Credit Opps. Inc PLC

21 January 2022

Riverstone Credit Opportunities Income Announces 4Q21 Quarterly Portfolio Valuations & Recent Activity

London, UK (21 January 2022) - Riverstone Credit Opportunities Income ("RCOI") announces its quarterly portfolio summary as of 31 December 2021, inclusive of updated quarterly unaudited fair market valuations:

As of 31 December 2021, the unaudited net asset value per Ordinary Share, including net revenue for the quarter ended 31 December, was $1.02.

Cumulative Portfolio Summary

Unrealised Portfolio [1]

 
  Investment        Subsector      Commitment    Cumulative   Cumulative    Gross       Gross        Gross       % of     Gross 
      Name                             Date       Committed    Invested    Realised   Unrealised    Realised      Par      MOIC 
                                                   Capital      Capital    Capital      Value       Capital      as of 
                                                    ($mm)        ($mm)     ($mm)(1)     ($mm)          &        31 Dec 
                                                                                                   Unrealised   2021(2) 
                                                                                                     Value 
                                                                                                     ($mm) 
    Project      Infrastructure                                                                                           1.31 
    Mariners         Services        Jul-19         13.2         13.2        7.1         10.6         17.7      110.00%     x 
    Caliber                                                                                                               0.17 
  Midstream(3)      Midstream        Aug-19         3.9          3.9         0.4         0.3          0.7        6.77%      x 
 Epic Propane                                                                                                             1.22 
    Pipeline        Midstream        Dec-19         14.8         14.8        2.7         15.4         18.1      101.60%     x 
                                                                                                                          1.18 
   FS Crude         Midstream        Mar-20         13.7         13.7        9.4         6.8          16.2      100.27%     x 
    Hoover 
    Circular     Infrastructure                                                                                           1.11 
   Solutions         Services        Oct-20         7.4          7.4         4.2         4.0          8.2       100.61%     x 
 Roaring Fork                                                                                                             1.13 
   Midstream        Midstream        Mar-21         5.9          4.2         0.4         4.3          4.7       99.88%      x 
  Imperium3NY        Energy                                                                                               1.35 
      LLC           Transition       Apr-21         6.8          5.4         1.5         5.8          7.3       128.74%     x 
   Blackbuck 
   Resources     Infrastructure                                                                                           1.07 
      LLC            Services        Jun-21         9.9          8.9         1.1         8.4          9.5       99.27%      x 
   Circulus 
   Holdings,     Infrastructure                                                                                           1.04 
     PBLLC           Services        Aug-21         12.3         12.3        3.6         9.2          12.7      97.79%      x 
  Streamline 
  Innovations        Energy                                                                                               1.08 
      Inc.          Transition       Nov-21         6.9          1.7         0.1         1.7          1.8       98.72%      x 
                                                                                                                         ------ 
                                                                                                                          1.13 
                                                   $94.8        $85.4       $30.4       $66.5        $96.9                  x 
 

Realised Portfolio

 
   Investment        Subsector      Commitment    Realisation    Cumulative   Cumulative   Gross Realised   Gross MOIC 
      Name                              Date          Date        Committed    Invested        Capital 
                                                                   Capital      Capital       ($mm)(1) 
                                                                    ($mm)        ($mm) 
  Rocky Creek       Exploration 
    Resources       & Production      Jun-19         Dec-19         6.0          4.3            4.9           1.15 x 
                  Infrastructure 
 CIG Logistics        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 
                    Exploration 
 Ascent Energy      & Production      Jun-19         Jun-21         13.3         13.3           16.1          1.21 x 
  Pursuit Oil       Exploration 
      & Gas         & Production      Jul-19         Jun-21         12.3         12.3           15.0          1.22 x 
 U.S. Shipping       Midstream        Feb-21         Aug-21         6.5          6.5            7.3           1.13 x 
  Aspen Power         Energy 
    Partners         Transition       Dec-20         Oct-21         6.9          3.4            4.3           1.27 x 
                                                                                          ---------------  ----------- 
                                                                   $86.8        $74.5          $85.0          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 31 December 
                                      2021 
 Weighted Avg. Entry Basis                                  96.8% 
                                                           ------------------- 
 Weighted Avg. All-in Coupon at Entry                       9.32 p.a. 
                                                           ------------------- 
 Weighted Avg. Undrawn Spread at Entry                      4.4% p.a. 
                                                           ------------------- 
 Weighted Avg. Tenor at Entry                               3.2 years 
                                                           ------------------- 
 Weighted Avg. Call Premium at Entry                        108.7 
                                                           ------------------- 
 Security                                                   100% Secured 
                                                           ------------------- 
 

Manager Outlook

-- Despite the recent concerns regarding the omicron variant, energy markets remained resilient throughout the end of 2021 with commodity prices remaining near the highs seen in Q3 2021. In addition, the Investment Manager's on-going shift to energy infrastructure & infrastructure services and energy transition assets, continues to further diversify and insulate the portfolio from commodity price or other macro volatility. Continued optimism remains across the RCOI portfolio, as the aggregate unrealized portfolio valuations were up QoQ in Q4 2021.

-- Imperium3, a $6.8 million RCOI commitment in April 2021 to a lithium-ion battery manufacturer, saw the largest increase in value in Q4 2021. This was due to a material increase in the value of equity raised in the second half of 2021 versus the value ascribed at closing.

-- Based on the current unfunded commitments, expected new deal activity and potential upsizes of existing investments, the Investment Manager believes that RCOI will be close to fully committed and materially invested by the end of Q1 2022.

-- In addition to providing support to the current portfolio companies, the Investment Manager expects to have ample opportunities throughout 2022 to deploy capital to target infrastructure, infrastructure services and energy transition investment. The portfolio is expected to continue to provide steady income and offer attractive returns for our shareholders.

Reuben Jeffery III, Chairman of RCOI, commented:

"Set against an encouraging energy market backdrop and strong fundamentals into the beginning of 2022, we remain very pleased with the performance of the RCOI vehicle. The Company currently has a net asset value per share of $1.02 and has returned over 20 cents per share to investors since the IPO."

Christopher Abbate and Jamie Brodsky, Co-Founders of Riverstone Credit, added:

"Q4 2021 was the second quarter without any upstream exposure in the RCOI portfolio or any expected in the foreseeable future. We do believe there remains a very attractive pipeline of investment opportunities within the energy infrastructure & infrastructure services and energy transition sectors. In Q4 2021, RCOI was able to fully realise one investment and execute one new sustainability-linked loan. The realisation of Aspen Power Partners, a first-lien green loan to a community solar developer, occurred in October 2021, resulting in a 36.0% IRR and 1.27x MOIC. In addition, in November 2021, RCOI provided a first lien term sustainability-linked loan to Streamline Innovations, a sponsor-backed leader in environmentally advanced treatment solutions and equipment for hydrogen sulfide (H(2) S) in energy, renewable fuels, wastewater, landfill gas, biogas, and industrial processes. We remain very optimistic about the opportunity set available for our target sector and remain focused on steady capital deployment and consistency of yield."

   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. 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 an initial focus on North America. RCOI intends to create a diversified portfolio across basins, commodities, 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: 

Adam Weiss

+1 212 271 2953

   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 Midstream Equity, Term Loan, and Revolver

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