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23 Apr 2021 07:00
Riverstone Credit Opportunities Income Announces 1Q21 Quarterly Portfolio Valuations & Recent Activity
London, UK (23 April 2021) - Riverstone Credit Opportunities Income ("RCOI") announces its quarterly portfolio summary as of 31 March 2021, inclusive of updated quarterly unaudited fair market valuations:
As of 31 March 2021, the unaudited net asset value per Ordinary Share, including net revenue for the quarter ended 31 March, was $1.04.
Cumulative Portfolio Summary
Unrealised Portfolio[1]
Investment Name | Subsector | Commitment Date | Cumulative Committed Capital ($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 March 20212 | Gross MOIC |
Ascent Energy | Exploration & Production | Jun-19 | 13.3 | 13.3 | 7.3 | 8.5 | 15.8 | 101.6% | 1.19 x |
Pursuit Oil & Gas | Exploration & Production | Jul-19 | 12.3 | 12.3 | 2.1 | 12.6 | 14.7 | 102.1% | 1.19 x |
Project Mariners | Infrastructure Services | Jul-19 | 13.2 | 13.2 | 6.1 | 10.3 | 16.4 | 105.4% | 1.22 x |
Caliber Midstream | Midstream | Aug-19 | 3.4 | 3.4 | 0.4 | 3.7 | 4.1 | 95.2% | 1.20 x |
Epic Propane Pipeline | Midstream | Dec-19 | 14.8 | 14.8 | 1.6 | 15.2 | 16.7 | 99.7% | 1.13 x |
FS Crude | Midstream | Mar-20 | 13.7 | 13.7 | 9.0 | 6.6 | 15.7 | 98.5% | 1.14 x |
Hoover Circular Solutions | Infrastructure Services | Oct-20 | 7.4 | 7.4 | 3.8 | 4.0 | 7.8 | 99.6% | 1.06 x |
Aspen Power Partners | Energy Transition | Dec-20 | 6.9 | 3.4 | 0.2 | 3.5 | 3.7 | 100.2% | 1.10 x |
Roaring Fork Midstream | Midstream | Feb-21 | 5.9 | 1.6 | 0.1 | 1.7 | 1.8 | 99.5% | 1.11 x |
U.S. Shipping | Midstream | Mar-21 | 6.5 | 6.5 | 0.3 | 6.5 | 6.8 | 100.1% | 1.04 x |
|
|
| $97.4 | $89.6 | $31.0 | $72.4 | $103.4 |
| 1.15 x |
Realised Portfolio
Investment Name | Subsector | Commitment Date | Realisation Date | Cumulative Committed Capital ($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 |
Mallard Exploration | Exploration & Production | Nov-19 | Apr-20 | 13.8 | 6.8 | 7.7 | 1.13 x |
CIG Logistics | Infrastructure Services | Jan-20 | Jan-20 | 8.7 | 8.7 | 8.9 | 1.02 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 |
|
|
|
| $47.8 | $39.0 | $42.3 | 1.08 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 31 March 20214 | |
Weighted Avg. Entry Basis | 97.3% |
Weighted Avg. All-in Coupon at Entry | 9.5% p.a. |
Weighted Avg. Undrawn Spread at Entry | 4.3% p.a. |
Weighted Avg. Tenor at Entry | 2.8 years |
Weighted Avg. Call Premium at Entry | 104.9 |
Security | 100% Secured |
Coupon Type | 100% Floating Rate |
Manager Outlook
§ The macro environment has been volatile for over a year, since the COVID-19 pandemic caused turmoil starting in March of last year. Despite this, the portfolio has remained relatively resilient and has continued to deliver both income generation and capital appreciation to investors.
§ After experiencing a tremendous downturn for most of 2020, oil prices improved towards the end of last year and the first quarter of this year. With COVID-19 vaccinations continuing to rollout, demand is expected to recover this year, though the magnitude of the recovery remains uncertain. A more stable market environment will help facilitate refinancings and exits for the RCOI portfolio. Meanwhile, the Investment Manager continues to identify attractive opportunities, including within infrastructure, infrastructure services and energy transition, its key areas of focus going forward.
Reuben Jeffery III, Chairman of RCOI, commented:
"As we pass the first anniversary of COVID-19, the RCOI portfolio has continued to generate value for shareholders in spite of a historically challenging market backdrop. The unrealised portfolio is marked at a 1.15x, reflecting a net asset value of $1.04 per Ordinary Share. The portfolio has returned 16 cents per share to investors since IPO."
Christopher Abbate and Jamie Brodsky, Co-Founders of Riverstone Credit, added:
"While we certainly did not predict a prolonged global pandemic would occur, the relative performance of RCOI has demonstrated the key competitive advantages of our strategy. Our focus on downside protection has not only protected principal but also yielded steady returns to investors. As we look forward, we seek to further increase the portfolio's exposure to sectors that we expect to see secular tailwinds and have limited correlation to broader commodity prices, including infrastructure, infrastructure services and energy transition."
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 from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.
Media Contacts
For Riverstone Credit Opportunities Income Plc:
Kylie Richards
+1 212-271-2946
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.
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