Q3 2023 Portfolio Valuations & Recent Activity

Riverstone Credit Opps. Inc PLC

25 October 2023

 

25 October 2023

Riverstone Credit Opportunities Income

Quarterly Update

Full Deployment Sustained Resulting in Robust Q3 Performance

Targeted annual dividend returns of 8-10% on subscribed capital

Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the LSE-listed energy infrastructure and energy-transition credit investor, is pleased to announce a robust portfolio performance for the quarter ended 30 September 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 dividend returns of 8-10% on subscribed capital.

Unaudited Net Asset Value

As at 30 September 2023, the unaudited net asset value per Ordinary Share, including net revenue for the quarter ended 30 September, stayed stable at $1.07 ($1.07: 30 June 2023). The stability was due to continued strong performance by the unrealised portfolio.

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

·    39.8% NAV total return⁵ since IPO in May 2019 (33.7% at 31 December 2022)

·    29.6 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 with a portfolio of accredited energy-transition focused investments entirely through green or sustainability-linked structured loans.

·    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 September 2023.  

Reuben Jeffery III, Chairman of RCOI, commented:

"The RCOI portfolio performed strongly in Q3 2023. 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 39.8% (33.7% at 31 December 2022) including 29.6 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 would also highlight that the portfolio 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 dividend returns of 8-10% on subscribed capital."

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 Sep 20232	% of Par as of 30 June 20232	30 Sep 2023 Gross MOIC	30 Sep 2023 Net MOIC
Caliber Midstream3		Infrastructure	Aug-19	4.0	4.0	0.5	0.5	1.0	36.12%	38.44%	0.24x	0.17x
Imperium3NY LLC		Energy Transition	Apr-21	6.8	5.4	6.7	0.9	7.6	0.914	0.914	1.42x	1.34x
Blackbuck Resources LLC		Infrastructure	Jun-21	11.5	11.0	4.1	10.3	14.4	103.19%	102.57%	1.31x	1.23x
Harland & Wolff Group Holdings PLC		Infrastructure Services	Mar-22	14.6	14.6	1.2	17.9	19.1	106.92%	106.11%	1.31x	1.24x
Seawolf Water Resources		Services	Sept-22	9.0	9.0	0.6	13.1	13.6	13.064	12.994	1.51x	1.44x
EPIC Propane Pipeline, LP		Infrastructure	Sept-22	13.9	13.9	1.9	13.9	15.8	99.33%	99.24%	1.14x	1.06x
Hoover Circular Solutions		Infrastructure Services	Nov-22	13.7	13.7	1.1	14.2	15.4	98.32%	98.18%	1.12x	1.04x
Clean Energy Fuels Corp		Energy Transition	Dec-22	13.9	13.9	1.4	13.9	15.3	99.39%	99.47%	1.11x	1.03x
Max Midstream		Infrastructure	Dec-22	5.0	5.0	0.4	5.2	5.6	101.38%	100.84%	1.13x	1.05x
Streamline Innovations Inc.		Infrastructure Services	Jun-23	9.9	3.5	0.3	3.6	3.8	99.20%	99.13%	1.08x	1.06x
				$102.3	$94.0	$18.2	$93.5	$111.7			1.19x	1.11x
	Direct Lending Consolidated Portfolio Key Stats at Entry As of 30 September 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 Sep 2023 Gross MOIC	30 Sep 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

[phone]

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

 

Media Contacts:

Buchanan

Helen Tarbet Henry Wilson Verity Parker

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, 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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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 Term Loan & Priming Facility.

⁴ Reflects the total fair market value in millions.

⁵ NAV total return equals cumulative paid dividend cents per share and NAV per share as of 30 September 2023 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 30 June 2023 and paid as of 30 September 2023.

 

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