19 April
2024
Riverstone Credit
Opportunities Income
Quarterly
Update
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
March 2024.
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
·
43.2% NAV total return5 achieved since
IPO in May 2019 (34.3% at 31 March 2023)
·
34.1 cents in dividends paid since
inception6
Portfolio Update
·
Against a backdrop of strong energy market
performance, the global drive towards decarbonisation and the
Company's unique focus on short duration lending, RCOI remains
extremely well positioned in the current environment. Further, the
re-balancing of the portfolio to accredited energy-transition
focused investments through Green or Sustainability-Linked
structures is now complete.
·
On 4 April 2024, the Company successfully realised
its Sustainability-Linked first lien term loan with EPIC Propane at
a 16.9 percent gross IRR and a 12.8 percent net IRR and 1.24x gross
MOIC and a 1.18x net MOIC.
Unaudited Net Asset Value
As at 31 March 2024, the unaudited
net asset value per Ordinary Share, including net revenue for the
quarter, remained stable at $1.06 ($1.06: 31 December 2023),
reflecting continued strong performance by the unrealised
portfolio.
Reuben Jeffery III, Chairman of RCOI,
commented:
"The RCOI portfolio once again
performed strongly in Q1 2024. The Company continues to be a
beneficiary of the current interest rate environment with a
strategy focused on floating rate, short duration loans that are
designed to capture elevated value for our shareholders in the
current macro environment.
"Since launch in May 2019, the
Company has delivered a NAV total return5 of 43.2%
(34.3% at 31 March 2023) including 34.1 cents per share in dividend
distributions6.
"The Board is pleased with the seamless transition to
Breakwall Capital as sub-manager and note that the portfolio
management team is continuing to perform to the same high standard
as they have always done since RCOI's listing.
"The Board remains focused on the upcoming AGM in May 2024,
and we are engaging with shareholders to understand their views
regarding the future of the Company. Our priority remains
optimising the portfolio to ensure long-term value creation for our
shareholders and will provide further details in due
course."
Christopher Abbate and Jamie Brodsky, Co-Founders of Breakwall
Capital, the Company's sub-manager, added:
"We
continue to be encouraged by the Company's strong performance and
its highly advantageous positioning in the current environment. In
addition to the attractive financial returns delivered, we are
pleased that the portfolio now consists entirely of Green and
Sustainability-Linked loans that contribute positively towards the
energy transition across a wide range of applications. The Company
is focused, as ever, on providing strong returns and dividends to
investors in order to deliver the targeted annual dividend returns
of 8-10% on subscribed capital."
Cumulative Portfolio Summary
Unrealised Portfolio[1]
Investment
Name
|
Subsector
|
Commitment
Date
|
Cumulative Committed Capital
($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 Mar
20242
|
% of Par as of 31 Dec
20232
|
31 Mar 2024 Gross
MOIC
|
31 Mar 2024 Net
MOIC
|
Caliber
Midstream3
|
Infrastructure
|
Aug-19
|
4.0
|
4.0
|
0.6
|
0.4
|
1.0
|
33.52%
|
35.78%
|
0.25x
|
0.07x
|
Imperium3NY
LLC
|
Energy
Transition
|
Apr-21
|
6.8
|
5.4
|
6.7
|
0.0
|
6.7
|
0.014
|
0.014
|
1.25x
|
1.13x
|
Blackbuck Resources
LLC
|
Infrastructure
|
Jun-21
|
11.5
|
11.0
|
6.1
|
9.2
|
15.3
|
98.87%
|
98.19%
|
1.39x
|
1.27x
|
Harland & Wolff Group
Holdings PLC
|
Infrastructure Services
|
Mar-22
|
14.6
|
14.6
|
2.0
|
18.9
|
20.9
|
18.604
|
18.104
|
1.44x
|
1.35x
|
Seawolf Water
Resources
|
Services
|
Sept-22
|
9.0
|
9.0
|
1.2
|
12.1
|
13.3
|
12.094
|
12.124
|
1.47x
|
1.41x
|
EPIC Propane Pipeline,
LP
|
Infrastructure
|
Sept-22
|
13.9
|
13.9
|
2.8
|
14.4
|
17.2
|
103.00%
|
99.52%
|
1.24x
|
1.18x
|
Hoover Circular
Solutions
|
Infrastructure Services
|
Nov-22
|
13.7
|
13.7
|
2.1
|
14.2
|
16.3
|
98.59%
|
98.45%
|
1.19x
|
1.13x
|
Max
Midstream
|
Infrastructure
|
Dec-22
|
5.0
|
5.0
|
0.9
|
5.1
|
6.1
|
102.09%
|
101.61%
|
1.21x
|
1.16x
|
Streamline Innovations
Inc.
|
Infrastructure Services
|
Jun-23
|
9.9
|
5.4
|
0.6
|
5.4
|
6.0
|
99.29%
|
99.24%
|
1.12x
|
1.09x
|
|
|
|
$88.4
|
$82.0
|
$23.0
|
$79.8
|
$102.8
|
|
|
1.25x
|
1.18x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Lending Consolidated
Portfolio Key Stats at Entry As of 31 March 2024
|
|
|
Weighted Avg. Entry Basis
|
97.5%
|
|
|
Weighted Avg. All-In Benchmark Rate at Entry
|
5.3
p.a.
|
|
|
Weighted Avg. Floating Rate Spread at Entry
|
7.0
p.a.
|
|
|
Weighted Avg. All-in Coupon at Entry
|
12.3 p.a.
|
|
|
Weighted Avg. Undrawn Spread at Entry
|
4.0
p.a.
|
|
|
Weighted Avg. Tenor at Entry
|
3.4
years
|
|
|
Weighted Avg. Call Premium at Entry
|
102.4
|
|
|
Security
|
100% Secured
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realised Portfolio
Investment
Name
|
Subsector
|
Commitment
Date
|
Realisation
Date
|
Cumulative Committed Capital
($mm)
|
Cumulative Invested Capital
($mm)
|
Gross Realised Capital
($mm)1
|
31 Mar 2024 Gross
MOIC
|
31 Mar 2024 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
|
1.22
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
|
1.13
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 LLC.
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.