20 April 2023
Riverstone Credit Opportunities Income
Quarterly Update
Full Deployment Sustained Resulting In Robust Q1 Performance
Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the LSE-listed energy infrastructure and energy-transition credit investor, is pleased to announce a strong portfolio performance for the quarter from 1 January to 31 March 2023, inclusive of updated quarterly unaudited fair market valuations.
Unaudited Net Asset Value
As of 31 March 2023, the unaudited net asset value per Ordinary Share, including net revenue for the quarter ended 31 March, was broadly stable at $1.06 ($1.08: 31 December 2022). This slight reduction was principally due to a movement in the valuation of the warrants related to a loan that was previously repaid.
Portfolio Summary and 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% whilst supporting companies engaged in supporting the energy transition
· 34.3% NAV total return5 since IPO in May 2019 (33.7% at 31 December 2022)
· 25.6 cents in dividends paid since inception6
Portfolio Update
· Against a backdrop of strong energy market performance, the global focus on de-carbonisation and the Company's unique focus on short duration lending, the Company remains extremely well positioned in the current environment. Further the re-balancing of the portfolio to accredited energy-transition focused investments through green or sustainability linked structures is now complete.
· Based on the current portfolio commitments, as well as the addition of the revolving credit facility in Q4 2022, the Company is nearly fully invested today.
Reuben Jeffery III, Chairman of RCOI, commented:
"The RCOI portfolio performed robustly in Q1 2023, and I believe the Company is well-positioned to continue to provide shareholders with attractive returns from its portfolio as well as through new senior secured investments from the considerable pipeline of opportunities currently progressing through due diligence. Underlying rates are as high as they've been in our history, and now with the Company's capital fully deployed, we expect our shareholders to benefit from the increased earnings power of the portfolio in this attractive environment.
Since launch in May 2019, a period that has included volatile conditions for equity investors and the energy sector, we are pleased that the Company has delivered a total NAV return5 of 34.3% (33.7% at 31 December 2022) including 25.6 cents per share in dividend distributions6."
Christopher Abbate and Jamie Brodsky, Co-Founders of Riverstone Credit, the investment adviser, added:
"RCOI's portfolio comprises Green and Sustainability-Linked loans with stable cash income and quality assets. The increase in rates over the end of 2023 continues to result in higher coupons for our portfolio, which consists of over 95% floating rate investments. We are pleased to have maintained near full deployment and we are actively exploring an attractive and diverse pipeline of opportunities for refinancing events."
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 20232 | % of Par as of 31 Dec 20222 | 31 Mar 2023 Gross MOIC | 31 Mar 2023 Net MOIC | |
| Caliber Midstream3 | Infrastructure | Aug-19 | 4.0 | 4.0 | 0.5 | 0.6 | 1.1 | 44.71% | 40.72% | 0.27x | 0.21x | |
| Imperium3NY LLC | Energy Transition | Apr-21 | 6.8 | 5.4 | 6.7 | 1.1 | 7.8 | 1.064 | 2.704 | 1.45x | 1.39x | |
| Blackbuck Resources LLC | Infrastructure | Jun-21 | 11.5 | 11.0 | 2.6 | 10.9 | 13.5 | 101.72% | 100.83% | 1.23x | 1.17x | |
| Streamline Innovations Inc. | Infrastructure Services | Nov-21 | 13.8 | 6.8 | 1.2 | 7.1 | 8.4 | 100.02% | 99.57% | 1.23x | 1.17x | |
| Harland & Wolff Group Holdings PLC | Infrastructure Services | Mar-22 | 14.6 | 14.6 | 1.4 | 16.1 | 17.5 | 103.29% | 102.49% | 1.20x | 1.14x | |
| Seawolf Water Resources | Services | Sept-22 | 9.0 | 9.0 | 0.3 | 12.9 | 13.2 | 12.904 | 13.024 | 1.46x | 1.41x | |
| EPIC Propane Pipeline, LP | Infrastructure | Sept-22 | 13.9 | 13.9 | 1.0 | 13.9 | 14.9 | 99.16% | 99.08% | 1.07x | 1.01x | |
| Hoover Circular Solutions | Infrastructure Services | Nov-22 | 13.7 | 13.7 | 0.6 | 13.9 | 14.4 | 98.05% | 98.05% | 1.05x | 0.99x | |
| Clean Energy Fuels Corp | Energy Transition | Dec-22 | 13.9 | 13.9 | 0.5 | 13.9 | 14.4 | 99.08% | 99.00% | 1.04x | 0.98x | |
| Max Midstream | Infrastructure | Dec-22 | 5.0 | 5.0 | 0.1 | 5.2 | 5.2 | 100.44% | 100.00% | 1.05x | 0.99x | |
| | | | $106.2 | $97.3 | $14.9 | $95.5 | $110.4 |
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| 1.13x | 1.08x | |
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| | | | | | | | | | | | |
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| Direct Lending Consolidated Portfolio Key Stats at Entry As of 31 March 2023 |
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| Weighted Avg. Entry Basis | 97.5% |
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| Weighted Avg. All-In Benchmark Rate at Entry | 4.6 p.a. |
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| Weighted Avg. Floating Rate Spread at Entry | 7.1 p.a. |
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| Weighted Avg. All-in Coupon at Entry | 11.7 p.a. |
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| Weighted Avg. Undrawn Spread at Entry | 4.0 p.a. |
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| Weighted Avg. Tenor at Entry | 3.4 years |
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| Weighted Avg. Call Premium at Entry | 102.6 |
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| Security | 100% Secured |
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Realised Portfolio
| Investment Name | Subsector | Commitment Date | Realisation Date | Cumulative Committed Capital ($mm) | Cumulative Invested Capital ($mm) | Gross Realised Capital ($mm)1 | 31 Mar 2023 Gross MOIC | 31 Mar 2023 Net MOIC |
| Rocky Creek Resources | Exploration & Production | Jun-19 | Dec-19 | 6.0 | 4.3 | 4.9 | 1.15 x | 1.10 x |
| CIG Logistics | Infrastructure Services | Jan-20 | Jan-20 | 8.7 | 8.7 | 8.9 | 1.02 x | 0.97 x |
| Mallard Exploration | Exploration & Production | Nov-19 | Apr-20 | 13.8 | 6.8 | 7.7 | 1.13 x | 1.08 x |
| Market Based | Multiple | Aug-20 | Nov-20 | 13.4 | 13.4 | 13.6 | 1.01 x | 0.96 x |
| Project Yellowstone | Infrastructure | Jun-19 | Mar-21 | 5.8 | 5.8 | 7.2 | 1.23 x | 1.18 x |
| Ascent Energy | Exploration & Production | Jun-19 | Jun-21 | 13.3 | 13.3 | 16.1 | 1.21 x | 1.16 x |
| Pursuit Oil & Gas | Exploration & Production | Jul-19 | Jun-21 | 12.3 | 12.3 | 15 | 1.22 x | 1.16 x |
| U.S. Shipping | Infrastructure Services | Feb-21 | Aug-21 | 6.5 | 6.5 | 7.3 | 1.13 x | 1.07 x |
| Aspen Power Partners | Infrastructure | Dec-20 | Oct-21 | 6.9 | 3.4 | 4.3 | 1.27 x | 1.22 x |
| Project Mariners | Infrastructure Services | Jul-19 | Apr-22 | 13.2 | 13.2 | 17.6 | 1.33x | 1.28 x |
| Roaring Fork Midstream | Infrastructure | Mar-21 | Jun-22 | 5.9 | 5.9 | 6.9 | 1.16x | 1.11 x |
| FS Crude, LLC | Infrastructure | Mar-20 | Sept-22 | 13.7 | 13.7 | 16.9 | 1.23x | 1.18 x |
| EPIC Propane Pipeline, LP | Infrastructure | Dec-19 | Sept-22 | 14.8 | 14.8 | 19.6 | 1.32x | 1.27 x |
| Circulus Holdings, PBLLC | Infrastructure | Aug-21 | Oct-22 | 12.3 | 12.3 | 14.0 | 1.14x | 1.09 x |
| Hoover Circular Solutions | Infrastructure Services | Oct-20 | Nov-22 | 15.4 | 15.4 | 17.0 | 1.10x | 1.05 x |
| | | | | $162.1 | $149.8 | $176.8 | 1.18x | 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 |
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| Jérémie Birnbaum |
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| James Bouverat (Sales) | |
Media Contacts:
Buchanan
Helen TarbetHenry WilsonVerity Parker | Tel: +44 (0) 20 7466 5109Tel: +44 (0) 20 7466 5111Tel: +44 (0) 20 7466 5197Email: 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.
5 NAV total return equals cumulative paid dividend cents per share and NAV per share as of 31 March 2023 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 December 2022 and paid as of 31 March 2023.
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