2Q22 Portfolio Valuations & Recent Activity

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 return⁵ since IPO in May 2019

· 18.6 cents in dividends paid since inception⁶

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 return⁵ of 23.4% including 18.6 cents per share in dividend distributions⁶. 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 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 20222	Gross MOIC
Caliber Midstream3	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 Solutions	Infrastructure Services	Oct-20	7.4	7.4	4.4	3.9	8.3	99.89%	1.13x
Imperium3NY LLC	Energy Transition	Apr-21	6.8	5.4	6.7	1.2	8.0	1.244	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 Inc.	Infrastructure Services	Nov-21	13.8	6.8	0.4	6.9	7.3	98.69%	1.07x
Harland & Wolff Group Holdings PLC	Infrastructure 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 Name	Subsector	Commitment Date	Realisation Date	Cumulative Committed Capital ($mm)	Cumulative Invested Capital ($mm)	Gross Realised Capital ($mm)1	Gross MOIC
Rocky Creek Resources	Exploration & Production	Jun-19	Dec-19	6	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	Infrastructure	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	1.22 x
U.S. Shipping	Infrastructure 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 Mariners	Infrastructure 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

[phone]

J.P. Morgan Cazenove (Corporate Broker)	[phone]
William Simmonds
Jérémie Birnbaum
James Bouverat (Sales)

 

 

Media Contacts

Helen Tarbet Henry Wilson Jon Krinks Verity Parker

Tel: [phone] Tel: [phone] Tel: [phone] Tel: [phone] Email:   [e-mail]

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, seehttps://www.riverstonecoi.com/.

Neither the contents of RCOI's website nor the contents of anywebsite accessible fromhyperlinkson the websites(oranyotherwebsite) is incorporated into, or forms partof, this announcement.

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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.

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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