2Q21 Portfolio Valuations & Recent Activity

RNS Number : 1930G

Riverstone Credit Opps. Inc PLC

23 July 2021

 

Riverstone Credit Opportunities Income Announces 2Q21 Quarterly Portfolio Valuations & Recent Activity

London, UK (23 July 2021) - Riverstone Credit Opportunities Income ("RCOI") announces its quarterly portfolio summary as of 30 June 2021, inclusive of updated quarterly unaudited fair market valuations:

As of 30 June 2021, the unaudited net asset value per Ordinary Share, including net revenue for the quarter ended 30 June, was $1.03.

Business Update

In June 2021, RCOI launched a new webcast, called "Energy Expansion", that will be focused on important themes within our sector and include interviews with executives and thought leaders in the industry. Two interviews, one with a community solar CEO and one with counsel discussing sustainable finance, have been completed to date with others expected in the near future. You can find the interviews here: https://www.riverstonecoi.com/market/energy-expansion-webcast  

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 20212	Gross MOIC
Project Mariners	Infrastructure Services	Jul-19	13.2	13.2	6.4	10.5	16.9	107.43%	1.25 x
Caliber Midstream	Midstream	Aug-19	3.4	3.4	0.4	2.0	2.4	49.07%	0.71 x
Caliber Midstream Revolver	Midstream	Apr-21	0.6	0.6	0.0	0.6	0.6	91.75%	1.01 x
Epic Propane Pipeline	Midstream	Dec-19	14.8	14.8	1.9	15.4	17.3	101.33%	1.17 x
FS Crude	Midstream	Mar-20	13.7	13.7	9.1	6.7	15.8	98.89%	1.15 x
Hoover Circular Solutions	Infrastructure Services	Oct-20	7.4	7.4	4.0	4.0	8.0	100.64%	1.08 x
Aspen Power Partners	Energy Transition	Dec-20	6.9	3.4	0.3	3.6	3.9	103.03%	1.16 x
U.S. Shipping	Midstream	Feb-21	6.5	6.5	0.4	6.5	6.9	100.35%	1.07 x
Roaring Fork Midstream	Midstream	Mar-21	5.9	2.7	0.2	2.8	3.0	99.81%	1.11 x
Imperium3NY LLC	Energy Transition	Apr-21	6.8	5.4	1.3	4.8	6.1	109.90%	1.14 x
Blackbuck Resources LLC	Infrastructure Services	Jun-21	9.9	8.9	0.2	8.9	9.0	98.50%	1.02 x
			$89.0	$79.8	$24.2	$65.7	$89.9		1.12 x

Realised Portfolio

Investment Name	Subsector	Commitment Date	Realisation Date	Cumulative Committed Capital ($mm)	Cumulative Invested Capital ($mm)	Gross Realised Capital ($mm)1	Gross MOIC2
Rocky Creek Resources	Exploration & Production	Jun-19	Dec-19	6.0	4.3	4.9	1.15 x
CIG Logistics	Infrastructure 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
Ascent Energy	Exploration & Production	Jun-19	Jun-21	13.3	13.3	16.1	1.21 x
Pursuit Oil & Gas	Exploration & Production	Jul-19	Jun-21	12.3	12.3	15.0	1.22 x
				$73.4	$64.6	$73.4	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 30 June 2021 4
Weighted Avg. Entry Basis	97.1%
Weighted Avg. All-in Coupon at Entry	9.34 p.a.
Weighted Avg. Undrawn Spread at Entry	4.4% p.a.
Weighted Avg. Tenor at Entry	3.0 years
Weighted Avg. Call Premium at Entry	108.5
Security	100% Secured
Coupon Type	100% Floating Rate

Manager Outlook

§ The second quarter continued to see an uptick in oil prices and strengething in supply and demand fundamentals in the market. The portfolio has continued to show resiliency throughout the past year and RCOI is well positioned to capitalise on the increasing market fundamentals through an opportunistic investment strategy and diversified portfolio.

  The Investment Manager believes the focus on infrastructure, infrastructure services and energy transition investment opportunities will provide downside protection and allow the portfolio to continue to generate positive returns and income for shareholders. 

Reuben Jeffery III, Chairman of RCOI, commented:

"Given the vastly improving commodity sector and strong realisations in the first half of 2021, we remain optimistic about RCOI's ability to generate value for shareholders. The Company currently has a net asset value per share of $1.03 and has returned over 17 cents per share to investors since the IPO".

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

"Following the Q2 2021 realisations in Ascent Energy and Pursuit Oil & Gas, we are very pleased with our overall performance in the upstream sector, as well as the fact there is no upstream exposure today. We believe there remains a very attractive pipeline of investment opportunities within the infrastructure, infrastructure services and energy transition sectors, which will allow us continued consistency of yield and principal preservation across our portfolio.  

Although RCOI's position in the Caliber Midstream Term Loan was marked down in Q2 2021 as a result of their largest customer declaring bankruptcy in March of 2021, Riverstone remains active in its conversations with the Company, remain confident in our investment and believe an improving macro environment will strengthen the financial health of Caliber in 2H 2021."

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, which span conventional energy as well as low carbon and renewable sources. 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 a primary focus on infrastructure businesses and going forward those with de-carbonization strategies in North America. RCOI intends to create a diversified portfolio across basins, commodities, technologies 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 fromhyperlinkson the websites (or any other website) is incorporated into, or forms partof, this announcement.

Media Contacts

 

For   Riverstone Credit Opportunities Income   Plc:

Jingcai Zhu

[phone]

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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.

 

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