TIDMRCOI
RNS Number : 7386T
Riverstone Credit Opps. Inc PLC
26 July 2022
26 July 2022
Riverstone Credit Opportunities Income
Quarterly Update
Strong Track Record of Attractive Realisations Continues
Share Buyback Programme Continues to Further Enhance Shareholder
Value
Riverstone Credit Opportunities Income ("RCOI" or the
"Company"), the LSE-listed energy infrastructure and
energy-transition credit investor, is pleased to announce its
quarterly portfolio summary as of 30 June 2022, inclusive of
updated quarterly unaudited fair market valuations.
Unaudited Net Asset Value
As of 30 June 2022, the unaudited net asset value per Ordinary
Share, including net revenue for the quarter ended 30 June, was
$1.02 ($1.03: 31 March 2022). The reduction in NAV quarter over
quarter is due to the larger distribution paid out in quarter end
30 June 2022 for the period ending 31 March 2022.
Period Highlights
-- NAV remains stable with all loans performing in line with
expectations and delivering income as anticipated
-- Growing record of attractive realisations continues:
o Imperium3NY LLC investment realised delivering 32.5% IRR and
1.25x MOIC; also retain non dilutable equity warrants with
meaningful upside
o Roaring Fork investment realised delivering 21.3% IRR and
1.16x MOIC
o Project Mariners investment realised delivering 14.5% IRR and
1.33x MOIC
-- Successful upsize of RCOI's existing investment in Streamline
Innovations, bringing total capital committed by RCOI to $13.8m
with Sustainable Fitch providing an SPO on the green loan
-- RCOI initiated a share buyback programme to underline the
Board's confidence of the strategy's high performing and
differentiated approach and to enhance shareholder value
-- Growing pipeline of attractive investment opportunities
across the infrastructure, infrastructure services and energy
transition sectors
Portfolio Summary / Lifetime Key Performance Indicators
-- Portfolio of 100% floating rate, short duration, senior
secured loans supporting RCOI's ambition to deliver annual returns
to shareholders of 8-10%
-- 23.4% NAV total return(5) since IPO in May 2019
-- 18.6 cents in dividends paid since inception(6)
Market Update
-- The backdrop for the broader energy sector remained strong in
Q2 2022, continuing the trend seen in the beginning of 2022. Given
our focus on energy infrastructure, infrastructure services and
energy transition assets, RCOI is well-diversified and poised to
take advantage of the investment opportunity brought about by the
convergence of two market phenomena, namely the consistent growing
demand for sources of energy and the concurrent need to meet global
"net-zero" targets. Similar to Q1 2022, Q2 2022 saw a slight
increase in the unrealised values across the loan portfolio. We
will continue to target similar investment opportunities through
our green loans and sustainability linked loans with sustainability
performance targets.
-- Based on the current unfunded commitments, recent deal
activity and potential new investment opportunities, the Investment
Manager believes RCOI will remain close to fully committed
throughout 2022.
Reuben Jeffery III, Chairman of RCOI, commented:
"Q2 2022 was a very strong quarter producing the third loan
realisation of 2022, all of which have achieved strong returns and
delivered an average Gross MOIC of 1.27x. In addition, energy
market fundamentals, with strong commodity pricing, remain
encouraging for RCOI's strategy. Reflecting this supportive
backdrop, the Company is poised to continue to provide attractive
returns from its existing portfolio as well as through new senior
secured investments from Riverstone Credit's extensive
pipeline.
Since launch the Company has delivered a total NAV return(5) of
23.4% including 18.6 cents per share in dividend distributions(6) .
In addition, while short duration, the portfolio's 100% floating
rate exposure should be expected to form a tailwind in enhancing
portfolio income in a higher interest rate environment."
Christopher Abbate and Jamie Brodsky, Co-Founders of Riverstone
Credit, the investment adviser, added:
"The RCOI existing portfolio and pipeline remains focused on the
three key sectors for the strategy, infrastructure, infrastructure
services and energy transition. In the second quarter of 2022, RCOI
realised its investments in Imperium3 NY, Roaring Fork and Project
Mariners resulting in IRRs of 32.5%, 21.3% and 14.5%
respectively.
Based on the growing track record of attractive realisation
multiples, we believe that going forward our portfolio income will
be sufficient to grow RCOI while preserving principal and in
addition to delivering on our dividend target.
We also are pleased to report two of our existing loans that
were successfully upsized, Streamline and post-period end,
Blackbuck Resources. Further, these loans were awarded Second Party
Opinions ("SPO") by Sustainable Fitch, Sustainable Fitch, a
division of Fitch Group focused on ESG. For Blackbuck, the SPO
considers the loans to be aligned with the five pillars of the LSTA
Sustainability-Linked Loan Principles. For Streamline, the SPO
verifies the Term Loan's alignment to the LSTA Green Loan
Principles with the transaction being compliant with the four
pillars of the LSTA Green Loan Principles and aligned with the LSTA
category of pollution and prevention. We are delighted to receive
this endorsement of the sustainability credentials of these energy
transition loans, a growing aspect of the Company's portfolio and
future pipeline."
Cumulative Portfolio Summary
Unrealised Portfolio[1]
Investment Subsector Commitment Cumulative Cumulative Gross Gross Gross % of Gross
Name Date Committed Invested Realised Unrealised Realised Par as MOIC
Capital Capital Capital Value Capital of 30
($mm) ($mm) ($mm)(1) ($mm) & June
Unrealised 2022(2)
Value
($mm)
Caliber
Midstream(3) Infrastructure Aug-19 4.0 4.0 0.5 0.6 1.1 56.35% 0.27x
Epic
Propane
Pipeline Infrastructure Dec-19 14.8 14.8 3.4 15.4 18.8 101.50% 1.27x
FS Crude Infrastructure Mar-20 13.7 13.7 9.7 6.8 16.5 100.07% 1.20x
Hoover
Circular Infrastructure
Solutions Services Oct-20 7.4 7.4 4.4 3.9 8.3 99.89% 1.13x
Imperium3NY Energy
LLC Transition Apr-21 6.8 5.4 6.7 1.2 8.0 1.24 (4) 1.48x
Blackbuck
Resources
LLC Infrastructure Jun-21 11.5 10.2 1.7 9.8 11.5 99.58% 1.12x
Circulus
Holdings,
PBLLC Infrastructure Aug-21 12.3 12.3 4.0 9.3 13.4 99.63% 1.09x
Streamline
Innovations Infrastructure
Inc. Services Nov-21 13.8 6.8 0.4 6.9 7.3 98.69% 1.07x
Harland
& Wolff
Group
Holdings Infrastructure
PLC Services Mar-22 11.8 10.1 0.4 10.1 10.6 98.24% 1.05x
$96.2 $84.6 $31.2 $64.2 $95.4 1.13x
Direct Lending Consolidated Portfolio Key Stats at Entry As of 30 June
2022
Weighted Avg. Entry Basis 96.9%
------------------
Weighted Avg. All-in Coupon at Entry 9.52 p.a.
------------------
Weighted Avg. Undrawn Spread at Entry 4.3 p.a.
------------------
Weighted Avg. Tenor at Entry 2.9 years
------------------
Weighted Avg. Call Premium at Entry 103.2
------------------
Security 100% Secured
------------------
Realised Portfolio
Investment Subsector Commitment Realisation Cumulative Cumulative Gross Gross
Name Date Date Committed Invested Realised MOIC
Capital Capital Capital
($mm) ($mm) ($mm)(1)
Rocky Exploration
Creek Resources & Production Jun-19 Dec-19 6 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 Infrastructure Jun-19 Mar-21 5.8 5.8 7.2 1.23 x
Ascent Exploration
Energy & Production Jun-19 Jun-21 13.3 13.3 16.1 1.21 x
Pursuit Exploration
Oil & Gas & Production Jul-19 Jun-21 12.3 12.3 15 1.22 x
Infrastructure
U.S. Shipping Services Feb-21 Aug-21 6.5 6.5 7.3 1.13 x
Aspen
Power Partners Infrastructure Dec-20 Oct-21 6.9 3.4 4.3 1.27 x
Project Infrastructure
Mariners Services Jul-19 Apr-22 13.2 13.2 17.6 1.33x
Roaring
Fork Midstream Infrastructure Mar-21 Jun-22 5.9 5.9 6.9 1.16x
$105.9 $93.6 $109.4 1.17x
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
Helen Tarbet Henry Tel: +44 (0) 20 7466 5109 Tel:
Wilson Jon Krinks +44 (0) 20 7466 5111 Tel: +44
Verity Parker (0) 20 7466 5199 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.
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 HoldCo Escrow, Caliber MFC LLC equity,
Caliber Midstream Revolver & Priming Facility.
(4) Reflects the total fair market value in millions of iM3NY
common equity and C4V common equity. The term loan was realized in
April 2022.
(5) NAV total return equals cumulative paid dividend cents per
share and NAV per share as of 30 June 2022 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 2022 and paid as of 30 June 2022.
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END
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