25 January
2024
Riverstone Credit
Opportunities Income
Quarterly Update and Notice
of Results
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 31
December 2023, which saw deployment in energy transition
investments and attractive realisations.
Unaudited Net Asset Value
As at 31 December 2023, the
unaudited net asset value per Ordinary Share, including net revenue
for the quarter, decreased 1.6% to $1.06 ($1.07: 30 September
2023). This slight reduction was principally due to a movement in
the valuation of the warrants related to a loan that was previously
repaid.
Portfolio Summary and Key Performance
Indicators
·
Portfolio of 100% floating rate, short duration,
senior secured loans, enabling RCOI to deliver annual returns to
shareholders of 8-10% from investing in companies engaged in the
energy transition
·
40.1% NAV total return5 achieved since
IPO in May 2019 (33.7% at 31 December 2022)
·
31.6 cents in dividends paid since
inception6
Portfolio Update
·
Successfully realised the Company's sustainability-linked first
lien term loan with Clean Energy Fuels Corp. at a 14.9 percent
gross IRR and a 10.8 percent net IRR and 1.14x gross MOIC and a
1.10x net MOIC.
·
Successfully amended and extended the Company's investment in
Blackbuck Resources. The maturity was extended to 31 December 2024,
and economic terms were adjusted for an estimated all-in yield to
maturity of 17 percent to RCOI. This resulted in c. $0.6 million in
profits being distributed.
Notice of Full Year Results
The Company will announce its full
year results for the year ended 31 December 2023 on Wednesday, 21
February 2024.
A virtual call for analysts will be
held at 2pm UK time on the afternoon of the announcement. A Q&A
facility will also be made available. The presentation will be
hosted by Christopher Abbate and Jamie Brodsky, Co-Founders of
Breakwall Capital, the Company's sub-manager.
If you would like to attend, please
contact Buchanan on +44 20 7466 5000 /
rcoi@buchanan.uk.com.
Reuben Jeffery III, Chairman of RCOI,
commented:
"The RCOI portfolio once again
performed strongly in Q4 2023. The Company successfully realised
one investment and closed an amendment for another, resulting in
sizeable returns to be distributed to investors. 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 NAV total return5 of 40.1%
(33.7% at 31 December 2022) including 31.6 cents per share in
dividend distributions6.
"The Board is pleased with the seamless transition to
Breakwall Capital as sub-manager and trust that the team will
continue to perform the same excellent portfolio management duties
that they have executed so successfully since
listing. In light of the end of the
investment period for Riverstone Credit Partners II in December
2023 and the upcoming realisation election for the Company on or
around the date of its annual general meeting, the Board will
communicate next steps in due course."
Christopher Abbate and Jamie Brodsky, Co-Founders of Breakwall
Capital, the Company's sub-manager, 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 are
proud of the fact that the portfolio consists entirely of Green and
Sustainability-Linked loans that contribute positively towards the
energy transition across a wide range of applications. The Company
is focused on providing strong returns and dividends to investors
in order 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 31 Dec
20232
|
% of Par as of 30 Sep
20232
|
31 Dec 2023 Gross
MOIC
|
31 Dec 2023 Net
MOIC
|
Caliber
Midstream3
|
Infrastructure
|
Aug-19
|
4.0
|
4.0
|
0.6
|
0.4
|
1.0
|
35.78%
|
36.12%
|
0.25x
|
0.08x
|
Imperium3NY
LLC
|
Energy
Transition
|
Apr-21
|
6.8
|
5.4
|
6.7
|
0.0
|
6.7
|
0.014
|
0.914
|
1.25x
|
1.14x
|
Blackbuck Resources
LLC
|
Infrastructure
|
Jun-21
|
11.5
|
11.0
|
5.2
|
9.7
|
14.9
|
98.19%
|
103.19%
|
1.35x
|
1.25x
|
Harland & Wolff Group
Holdings PLC
|
Infrastructure Services
|
Mar-22
|
14.6
|
14.6
|
2.0
|
18.2
|
20.2
|
109.50%
|
106.92%
|
1.39x
|
1.31x
|
Seawolf Water
Resources
|
Services
|
Sept-22
|
9.0
|
9.0
|
0.7
|
12.1
|
12.8
|
12.124
|
13.064
|
1.43x
|
1.38x
|
EPIC Propane Pipeline,
LP
|
Infrastructure
|
Sept-22
|
13.9
|
13.9
|
2.3
|
13.9
|
16.3
|
99.52%
|
99.33%
|
1.17x
|
1.12x
|
Hoover Circular
Solutions
|
Infrastructure Services
|
Nov-22
|
13.7
|
13.7
|
1.6
|
14.2
|
15.8
|
98.45%
|
98.32%
|
1.15x
|
1.11x
|
Max
Midstream
|
Infrastructure
|
Dec-22
|
5.0
|
5.0
|
0.8
|
5.1
|
5.8
|
101.61%
|
101.38%
|
1.17x
|
1.13x
|
Streamline Innovations
Inc.
|
Infrastructure Services
|
Jun-23
|
9.9
|
3.5
|
0.5
|
3.6
|
4.0
|
99.24%
|
99.20%
|
1.13x
|
1.11x
|
|
|
|
$88.4
|
$80.1
|
$20.4
|
$77.2
|
$97.6
|
|
|
1.22x
|
1.15x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Lending Consolidated
Portfolio Key Stats at Entry As of 31 December
2023
|
|
|
Weighted Avg. Entry Basis
|
97.5%
|
|
|
Weighted Avg. All-In Benchmark Rate at Entry
|
5.3
p.a.
|
|
|
Weighted Avg. Floating Rate Spread at Entry
|
7.0
p.a.
|
|
|
Weighted Avg. All-in Coupon at Entry
|
12.3 p.a.
|
|
|
Weighted Avg. Undrawn Spread at Entry
|
4.0
p.a.
|
|
|
Weighted Avg. Tenor at Entry
|
3.4
years
|
|
|
Weighted Avg. Call Premium at Entry
|
102.4
|
|
|
Security
|
100% Secured
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Realised Portfolio
Investment
Name
|
Subsector
|
Commitment
Date
|
Realisation
Date
|
Cumulative Committed Capital
($mm)
|
Cumulative Invested Capital
($mm)
|
Gross Realised Capital
($mm)1
|
31 Dec 2023 Gross
MOIC
|
31 Dec 2023 Net
MOIC
|
Rocky Creek
Resources
|
Exploration & Production
|
Jun-19
|
Dec-19
|
6.0
|
4.3
|
4.9
|
1.15
x
|
1.13
x
|
CIG
Logistics
|
Infrastructure Services
|
Jan-20
|
Jan-20
|
8.7
|
8.7
|
8.9
|
1.02
x
|
1.02
x
|
Mallard
Exploration
|
Exploration & Production
|
Nov-19
|
Apr-20
|
13.8
|
6.8
|
7.7
|
1.13
x
|
1.12
x
|
Market
Based
|
Multiple
|
Aug-20
|
Nov-20
|
13.4
|
13.4
|
13.6
|
1.01
x
|
1.00
x
|
Project
Yellowstone
|
Infrastructure
|
Jun-19
|
Mar-21
|
5.8
|
5.8
|
7.2
|
1.23
x
|
1.16
x
|
Ascent
Energy
|
Exploration & Production
|
Jun-19
|
Jun-21
|
13.3
|
13.3
|
16.1
|
1.21
x
|
1.13
x
|
Pursuit Oil &
Gas
|
Exploration & Production
|
Jul-19
|
Jun-21
|
12.3
|
12.3
|
15
|
1.22
x
|
1.14
x
|
U.S.
Shipping
|
Infrastructure Services
|
Feb-21
|
Aug-21
|
6.5
|
6.5
|
7.3
|
1.13
x
|
1.11
x
|
Aspen Power
Partners
|
Infrastructure
|
Dec-20
|
Oct-21
|
6.9
|
3.4
|
4.3
|
1.27
x
|
1.24
x
|
Project
Mariners
|
Infrastructure Services
|
Jul-19
|
Apr-22
|
13.2
|
13.2
|
17.6
|
1.33
x
|
1.21
x
|
Roaring Fork
Midstream
|
Infrastructure
|
Mar-21
|
Jun-22
|
5.9
|
5.9
|
6.9
|
1.16
x
|
1.11
x
|
FS Crude,
LLC
|
Infrastructure
|
Mar-20
|
Sept-22
|
13.7
|
13.7
|
16.9
|
1.23
x
|
1.12
x
|
EPIC Propane Pipeline,
LP
|
Infrastructure
|
Dec-19
|
Sept-22
|
14.8
|
14.8
|
19.6
|
1.32
x
|
1.21
x
|
Circulus Holdings,
PBLLC
|
Infrastructure
|
Aug-21
|
Oct-22
|
12.3
|
12.3
|
14.0
|
1.14
x
|
1.10
x
|
Hoover Circular
Solutions
|
Infrastructure Services
|
Oct-20
|
Nov-22
|
15.4
|
15.4
|
17.0
|
1.10
x
|
1.01
x
|
Streamline Innovations
Inc.
|
Infrastructure Services
|
Nov-21
|
Jun-23
|
13.8
|
6.9
|
8.9
|
1.29
x
|
1.22
x
|
Clean Energy Fuels
Corp
|
Energy
Transition
|
Dec-22
|
Dec-23
|
13.9
|
13.9
|
15.7
|
1.14
x
|
1.10
x
|
|
|
|
|
$189.8
|
$170.6
|
$201.4
|
1.18x
|
1.12x
|
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
+1 212 271 2953
J.P. Morgan Cazenove (Corporate
Broker)
|
+44
(0)20 7742 4000
|
William Simmonds
|
|
Jérémie Birnbaum
|
|
James Bouverat (Sales)
|
|
Media Contacts:
Buchanan
Helen Tarbet
Henry Wilson
Verity Parker
|
Tel: +44 (0) 20 7466
5109
Tel: +44 (0) 20 7466
5111
Tel: +44 (0) 20 7466
5197
|
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.
As previously announced, on January
2, Riverstone Holdings LLC, and their affiliate Riverstone
Investment Group (collectively, "Riverstone") entered into a sub
management agreement for RCOI with Breakwall Capital LP.
Breakwall is an independent asset manager regulated by the SEC as a
Registered Investment Advisor. It is owned and operated by the
former members of the Riverstone Credit Partners team.
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.