Interim Management Statement & Q3 2021 Valuation

RNS Number : 4936Q

Riverstone Credit Opps. Inc PLC

28 October 2021

 

Riverstone Credit Opportunities Income

Interim Management Statement

London, UK 28 October 2021: Riverstone Credit Opportunities   Income Plc ("RCOI" or the "Company") is issuing this Interim Management Statement ("IMS") for the periodfrom 01 January 2021 to 30 September 2021 (the "Period").

 

Summary Performance

30  September 2021

Key Financials

NAV	$93.32 million
NAV per share	$1.02
Market capitalization	$78.73 million
Share Price	$0.86
Total comprehensive income for the period	$2.82 million

§ As of 30 September 2021, RCOI had a NAV per share of $1.02.

Quarterly Distribution

§ Riverstone Credit Opportunities Income Plc ("RCOI" or the "Company") is pleased to announce that the distribution for the period ending 30 September 2021 of 1.8 cents per share, has been declared by the Directors, payable on 26 November 2021 to holders of ordinary shares on the register at the close of business on 5 November 2021 (ex-distribution date is 4 November 2021).

§ The Company's quarterly factsheet will be located on the Company's website, www.RiverstoneCOI.com.

§ RCOI'sProspectus is available to view at:www.RiverstoneCOI.com.

Riverstone Credit Opportunities Income ("RCOI") announces its quarterly portfolio summary as of 30 September 2021, inclusive of updated quarterly unaudited fair market valuations:

Cumulative Portfolio Summary

Unrealised Portfolio

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 Sep 20212	Gross MOIC
Project Mariners	Infrastructure Services	Jul-19	13.2	13.2	6.7	11.0	17.6	108.21%	1.27 x
Caliber Midstream	Midstream	Aug-19	3.4	3.4	0.4	0.2	0.6	5.96%	0.18 x
Epic Propane Pipeline	Midstream	Dec-19	14.8	14.8	2.3	15.5	17.8	101.94%	1.20 x
FS Crude	Midstream	Mar-20	13.7	13.7	9.3	6.8	16.0	99.96%	1.17 x
Hoover Circular Solutions	Infrastructure Services	Oct-20	7.4	7.4	4.1	4.0	8.1	100.84%	1.10 x
Aspen Power Partners	Energy Transition	Dec-20	6.9	3.4	0.4	3.8	4.2	108.61%	1.24 x
Roaring Fork Midstream	Midstream	Mar-21	5.9	3.5	0.3	3.6	3.9	99.74%	1.12 x
Imperium3NY LLC	Energy Transition	Apr-21	6.8	5.4	1.4	5.2	6.6	116.91%	1.23 x
Caliber Midstream Revolver	Midstream	Apr-21	0.6	0.6	0.0	0.3	0.3	50.00%	0.57 x
Blackbuck Resources LLC	Infrastructure Services	Jun-21	9.9	8.9	0.4	8.9	9.3	99.18%	1.05 x
Project Sphere	Infrastructure Services	Aug-21	12.3	12.3	0.2	12.3	12.5	98.32%	1.02 x
			$94.8	$86.3	$25.3	$71.6	$96.9		1.11 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
				$79.9	$71.1	$80.7	1.13 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 September 2021
Weighted Avg. Entry Basis	97.4%
Weighted Avg. All-in Coupon at Entry	9.37 p.a.
Weighted Avg. Undrawn Spread at Entry	5.1% p.a.
Weighted Avg. Tenor at Entry	3.0 years
Weighted Avg. Call Premium at Entry	107.8
Security	100% Secured
Coupon Type	100% Floating Rate

Manager Outlook

§ Investor sentiment for the energy sector in the third quarter reached its highest level since the IPO. Supply and demand fundamentals continue to improve, with many expecting these trends to continue throughout the rest of 2021. RCOI remains well positioned to capitalise on the increasing market fundamentals through an opportunistic investment approach, made up of a diversified portfolio of short duration loans.

§ Throughout the quarter, RCOI successfully realised its U.S. Shipping Loan which resulted in a 27.7% IRR and 1.13x MOIC. In addition, RCOI capitalized on the market momentum to put in place two new loans for Project Sphere and Blackbuck resources.

§ Despite the strong market environment, the Investment Manager has taken a meaningful write-down with respect to its investment in Caliber Midstream ("Caliber"). The bankruptcy of one of Caliber's key customers has led to a significant reduction in revenue which has resulted in the conversion of the investment from debt to equity.  While Caliber represents the smallest position of RCOI's holdings at ~4%, the investment remains significant across all the pools of capital managed by the Investment Manager, who remains focused on maximizing recovery for investors. 

§ The Investment Manager continues to target infrastructure, infrastructure services and energy transition investment opportunities which will allow for steady income and positive returns for shareholders.

Reuben Jeffery III, Chairman of RCOI, commented:

"With the trend of improving market fundamentals continuing throughout Q3 2021, we are pleased with the performance of the RCOI vehicle. The Company currently has a net asset value per share of $1.02 and has returned approximately 19 cents per share to investors since the IPO.  While the situation at Caliber is disappointing, given the small size of the investment, the overall impact to the portfolio is minimal."

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

"Even with the ongoing challenging circumstances at Caliber, RCOI had another strong quarter.  The portfolio saw another realised investment with a strong return within the targeted market sector, with U.S. Shipping being refinanced in August 2021. In addition, the two new investments for Q3 represented a green loan and a sustainability-linked loan through Project Sphere and Blackbuck Resources, respectively. A green loan has the use of proceeds tied to specific green initiatives while a sustainability-linked loan encourages sustainable behavior by having loan pricing step up if certain targets are not achieved. Our pipeline continues to offer a wide range of similar investments, across infrastructure and infrastructure service-focused companies across conventional and low-carbon/renewable energy sources. We remain focused on continuing to deploy capital across this pipeline as realisations occur."

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:

Adam Weiss

[phone]

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.

 

END

 

 

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