Refinancing & Upsizing of Streamline Innovations

Riverstone Credit Opps. Inc PLC

13 July 2023

 

 

13 July 2023

Riverstone Credit Opportunities Income Plc

Successful Refinancing & Upsizing of Streamline Innovations

Realisation of Existing RCOI Streamline Innovations Loan with $2.0 Million Gross Profit

Refinancing Realized 24% Gross IRR

Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the LSE-listed energy infrastructure and energy-transition credit investor, is pleased to announce a successful amendment and extension of the Company's investment in Streamline Innovations (the "Borrower"), a leader in environmentally-advanced treatment solutions for the removal of hydrogen sulfide (H2S) from energy, renewable fuels, wastewater, and industrial processes.

RCOI realized c. $2.0 million of profits at closing of the amendment and extension resulting in a 24 percent gross IRR (19 percent net IRR) and a 1.3x gross MOIC (1.2x net MOIC) of the initial investment in Streamline Innovations. With this upsize, RCOI remains nearly fully invested, with the portfolio comprising almost exclusively green loans and sustainability-linked loans.

In November 2021, RCOI participated in a $20.0 million first lien delayed-draw term loan, of which $6.9 million was committed by RCOI. In May 2022, RCOI participated in a $25.0 million upsize for a $45.0 million first lien delayed-draw term loan, bringing RCOI's total commitment to $13.8 million. The facility was structured as a green loan with Sustainable Fitch providing a Second Party Opinion ("SPO"). The SPO verifies the facility'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.

As part of this amendment and extension closing, the facility was upsized to $55.0 million, the maturity was extended to December 2026, and economic terms were adjusted for an estimated all-in yield to maturity of 13 percent to RCOI.  Additionally, as part of the amendment, RCOI's allocation to the loan was reduced from $13.8 million to $9.9 million as the result of the investment manger's allocation policy which aims to allocate each deal based on the available capital in each fund being invested.

Christopher Abbate, Co-Head of Riverstone Credit, the Company's Investment Manager said:

"We are pleased to extend this investment and assist the borrower with additional capital for continued growth to deliver environmental sustainability benefits to their customers. Since our initial investment in Streamline, the borrower has performed well and achieved substantial growth with over 40 H2S treating units deployed today. Streamline's green solutions allowed its customers to avoid over 33 million pounds of sulfur dioxide emissions in 2022, representing a more than 40% increase over 2021.

"RCOI is now nearly fully deployed in an attractive and diversified portfolio of independently accredited green and sustainability-linked loans that support the Company's target annual dividend yield of 8%, paid through quarterly distributions. In a challenging capital markets environment, we believe that this level of income is very attractive to investors who want a lower risk exposure to the energy transition."

For Riverstone Credit Opportunities Income Plc:

Adam Weiss                                                    [phone]

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 is strategically repositioning towards 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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