RNS Number : 7247G
Riverstone Credit Opps. Inc PLC
21 July 2023
 

21 July 2023

Riverstone Credit Opportunities Income

Quarterly Update

Full Deployment Sustained Resulting In Robust Q2 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 ended 30 June 2023, in which full deployment in energy transition investments now means that shareholders will benefit from the portfolio's high earnings power and targeted annual returns of 8-10%, with current annual dividend yield7 of 10%.

 

Unaudited Net Asset Value

 

The unaudited net asset value per Ordinary Share, including net revenue, for the quarter ended 30 June 2023, increased by 1.4% to $1.07 ($1.06: 31 March 2023). This increase was principally due to continued strong performance by the unrealised portfolio and the successful refinancing and amendment of the Company's investment in Streamline Innovations Inc.

 

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 investing in companies engaged in the energy transition

·    37.8% NAV total return5 since IPO in May 2019 (33.7% at 31 December 2022)

·    27.6 cents in dividends paid since inception6

Portfolio Update

·    Against a backdrop of strong energy market performance, the global focus on decarbonisation and the Company's unique focus on short duration lending, the Company remains extremely well positioned in the current environment. Further, the rebalancing of the portfolio to accredited energy-transition focused investments through green or sustainability linked structures is now complete with the portfolio now consisting entirely of such loans.

·    During Q2 2023, the Company amended and extended its investment in Streamline Innovations and realised c. $2.0 million of profits at closing of the amendment and extension resulting in a 24 percent gross IRR (19 percent net IRR) and a 1.3x gross MOIC (1.2x net MOIC) of the initial investment in Streamline Innovations. As part of this amendment and extension closing, the facility was upsized to $55.0 million, the maturity was extended to December 2026, and economic terms were adjusted for an estimated all-in yield to maturity of 13 percent to RCOI.  RCOI's allocation to the loan was $9.9 million.

·    Based on current portfolio commitments, as well as the addition of the revolving credit facility in Q4 2022, the Company is nearly fully invested as of 30 June 2023.  

Reuben Jeffery III, Chairman of RCOI, commented:

"The RCOI portfolio performed strongly in Q2 2023, with the successful refinancing and upsizing of the Company's investment in Streamline Innovations Inc.. The Company continues to be a beneficiary of the current interest rate environment with a strategy focused on floating rate, short duration loans that are designed to capture the elevated value for our shareholders in the rapidly changing macro environment.

Since launch in May 2019, the Company has now delivered a total NAV return5 of 37.8% (33.7% at 31 December 2022) including 27.6 cents per share in dividend distributions6."

 

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

"We continue to be encouraged by the Company's strong performance and its advantageous positioning in the current environment. In addition to the attractive financial returns delivered, we also note that the portfolio now consists entirely of Green and Sustainability-Linked loans that contribute positively towards the energy transition across a wide variety of applications. The Company's near complete deployment in such investments means that shareholders will benefit from full exposure to the high earnings power of the portfolio's energy transition investments, which should further supplement available income to deliver the targeted annual returns of 8-10%, with current annual dividend yield7 of 10%."

 

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 20232

% of Par as of 31 Mar 20232

30 June 2023 Net MOIC

Caliber Midstream3

Infrastructure

Aug-19

4.0

4.0

0.5

0.5

1.0

38.44%

44.71%

0.25x

0.18x

Imperium3NY LLC

Energy Transition

Apr-21

6.8

5.4

6.7

0.9

7.6

0.914

1.064

1.42x

1.36x

Blackbuck Resources LLC

Infrastructure

Jun-21

11.5

11.0

3.0

11.0

14.0

102.57%

101.72%

1.27x

1.20x

Harland & Wolff Group Holdings PLC

Infrastructure Services

Mar-22

14.6

14.6

1.2

17.3

18.5

106.11%

103.29%

1.27x

1.21x

Seawolf Water Resources

Services

Sept-22

9.0

9.0

0.4

13.0

13.4

12.994

12.904

1.49x

1.43x

EPIC Propane Pipeline, LP

Infrastructure

Sept-22

13.9

13.9

1.4

13.9

15.3

99.24%

99.16%

1.10x

1.04x

Hoover Circular Solutions

Infrastructure Services

Nov-22

13.7

13.7

0.7

14.2

14.9

98.18%

98.05%

1.08x

1.02x

Clean Energy Fuels Corp

Energy Transition

Dec-22

13.9

13.9

1.0

13.9

14.9

99.47%

99.08%

1.08x

1.01x

Max Midstream

Infrastructure

Dec-22

5.0

5.0

0.2

5.2

5.4

100.84%

100.44%

1.09x

1.02x

Streamline Innovations Inc.

Infrastructure Services

Jun-23

9.9

3.5

0.1

3.6

3.6

99.13%

99.13%

1.03x

1.02x




$102.3

$94.0

$15.3

$93.4

$108.7

 

 

1.16x

1.09x

 

 

 












 

Direct Lending Consolidated Portfolio Key Stats at Entry As of 30 June 2023

 

 

Weighted Avg. Entry Basis

97.5%

 

 

Weighted Avg. All-In Benchmark Rate at Entry

4.6 p.a.

 

 

Weighted Avg. Floating Rate Spread at Entry

7.1 p.a.

 

 

Weighted Avg. All-in Coupon at Entry

11.7 p.a.

 

 

Weighted Avg. Undrawn Spread at Entry

4.0 p.a.

 

 

Weighted Avg. Tenor at Entry

3.4 years

 

 

Weighted Avg. Call Premium at Entry

102.6

 

 

Security

100% Secured

 

 

Realised Portfolio

Investment Name

Subsector

Commitment Date

Realisation Date

Cumulative Committed Capital ($mm)

Cumulative Invested Capital ($mm)

Gross Realised Capital ($mm)1

30 June 2023 Gross MOIC

30 June 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

Streamline Innovations Inc.

Infrastructure Services

Nov-21

Jun-23

13.8

6.9

8.9

1.29x

1.23x





$175.9

$156.7

$185.7

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

 

Jérémie Birnbaum

 

James Bouverat (Sales)


 

Media Contacts:

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.

 

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.

 

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