4Q21 Portfolio Valuations & Recent Activity

RNS Number : 1603Z

Riverstone Credit Opps. Inc PLC

21 January 2022

 

Riverstone Credit Opportunities Income Announces 4Q21 Quarterly Portfolio Valuations & Recent Activity

London, UK (21 January 2022) - Riverstone Credit Opportunities Income ("RCOI") announces its quarterly portfolio summary as of 31 December 2021, inclusive of updated quarterly unaudited fair market valuations:

As of 31 December 2021, the unaudited net asset value per Ordinary Share, including net revenue for the quarter ended 31 December, was $1.02.

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 Dec 20212	Gross MOIC
Project Mariners	Infrastructure Services	Jul-19	13.2	13.2	7.1	10.6	17.7	110.00%	1.31 x
Caliber Midstream3	Midstream	Aug-19	3.9	3.9	0.4	0.3	0.7	6.77%	0.17 x
Epic Propane Pipeline	Midstream	Dec-19	14.8	14.8	2.7	15.4	18.1	101.60%	1.22 x
FS Crude	Midstream	Mar-20	13.7	13.7	9.4	6.8	16.2	100.27%	1.18 x
Hoover Circular Solutions	Infrastructure Services	Oct-20	7.4	7.4	4.2	4.0	8.2	100.61%	1.11 x
Roaring Fork Midstream	Midstream	Mar-21	5.9	4.2	0.4	4.3	4.7	99.88%	1.13 x
Imperium3NY LLC	Energy Transition	Apr-21	6.8	5.4	1.5	5.8	7.3	128.74%	1.35 x
Blackbuck Resources LLC	Infrastructure Services	Jun-21	9.9	8.9	1.1	8.4	9.5	99.27%	1.07 x
Circulus Holdings, PBLLC	Infrastructure Services	Aug-21	12.3	12.3	3.6	9.2	12.7	97.79%	1.04 x
Streamline Innovations Inc.	Energy Transition	Nov-21	6.9	1.7	0.1	1.7	1.8	98.72%	1.08 x
			$94.8	$85.4	$30.4	$66.5	$96.9		1.13 x

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	6.0	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
U.S. Shipping	Midstream	Feb-21	Aug-21	6.5	6.5	7.3	1.13 x
Aspen Power Partners	Energy Transition	Dec-20	Oct-21	6.9	3.4	4.3	1.27 x
				$86.8	$74.5	$85.0	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 31 December 2021
Weighted Avg. Entry Basis	96.8%
Weighted Avg. All-in Coupon at Entry	9.32 p.a.
Weighted Avg. Undrawn Spread at Entry	4.4% p.a.
Weighted Avg. Tenor at Entry	3.2 years
Weighted Avg. Call Premium at Entry	108.7
Security	100% Secured

Manager Outlook

§ Despite the recent concerns regarding the omicron variant, energy markets remained resilient throughout the end of 2021 with commodity prices remaining near the highs seen in Q3 2021. In addition, the Investment Manager's on-going shift to energy infrastructure & infrastructure services and energy transition assets, continues to further diversify and insulate the portfolio from commodity price or other macro volatility. Continued optimism remains across the RCOI portfolio, as the aggregate unrealized portfolio valuations were up QoQ in Q4 2021. 

§ Imperium3, a $6.8 million RCOI commitment in April 2021 to a lithium-ion battery manufacturer, saw the largest increase in value in Q4 2021. This was due to a material increase in the value of equity raised in the second half of 2021 versus the value ascribed at closing.

§ Based on the current unfunded commitments, expected new deal activity and potential upsizes of existing investments, the Investment Manager believes that RCOI will be close to fully committed and materially invested by the end of Q1 2022.

§ In addition to providing support to the current portfolio companies, the Investment Manager expects to have ample opportunities throughout 2022 to deploy capital to target infrastructure, infrastructure services and energy transition investment. The portfolio is expected to continue to provide steady income and offer attractive returns for our shareholders.

Reuben Jeffery III, Chairman of RCOI, commented:

"Set against an encouraging energy market backdrop and strong fundamentals into the beginning of 2022, we remain very pleased with the performance of the RCOI vehicle. The Company currently has a net asset value per share of $1.02 and has returned over 20 cents per share to investors since the IPO."

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

"Q4 2021 was the second quarter without any upstream exposure in the RCOI portfolio or any expected in the foreseeable future. We do believe there remains a very attractive pipeline of investment opportunities within the energy infrastructure & infrastructure services and energy transition sectors. In Q4 2021, RCOI was able to fully realise one investment and execute one new sustainability-linked loan. The realisation of Aspen Power Partners, a first-lien green loan to a community solar developer, occurred in October 2021, resulting in a 36.0% IRR and 1.27x MOIC. In addition, in November 2021, RCOI provided a first lien term sustainability-linked loan to Streamline Innovations, a sponsor-backed leader in environmentally advanced treatment solutions and equipment for hydrogen sulfide (H₂S) in energy, renewable fuels, wastewater, landfill gas, biogas, and industrial processes. We remain very optimistic about the opportunity set available for our target sector and remain focused on steady capital deployment and consistency of yield."

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. 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 an initial focus on North America. RCOI intends to create a diversified portfolio across basins, commodities, 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:

Adam Weiss

[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.

³ Includes Caliber Midstream Equity, Term Loan, and Revolver

 

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