Last checked at 
29 Jul 2020 07:00
Riverstone Credit Opportunities Income Announces 2Q20 Quarterly Portfolio Valuations & Recent Activity
London, UK (29 July 2020) - Riverstone Credit Opportunities Income ("RCOI") announces its quarterly portfolio summary as of 30 June 2020, inclusive of updated quarterly unaudited fair market valuations:
Cumulative Portfolio Summary
Unrealised Portfolio
Project Name | Subsector | Commitment Date |
Committed Capital ($mm) | Invested Capital ($mm) | Gross Realised Capital ($mm)[1] | Gross Unrealised Value ($mm) | Gross Realised Capital & Unrealised Value ($mm) | Gross MOIC2 | |||||||
Yellowstone | Midstream | June 2019 | 5.8 | 5.8 | 0.3 | 6.7 | 7.0 | 1.20x | |||||||
Alp | E&P | June 2019 | 13.3 | 13.3 | 1.1 | 13.2 | 14.3 | 1.08x | |||||||
Mariners | Services | July 2019 | 13.2 | 12.5 | 2.4 | 11.3 | 13.7 | 1.10x | |||||||
Chase | E&P | July 2019 | 12.3 | 10.1 | 0.9 | 10.2 | 11.1 | 1.11x | |||||||
Remington | Midstream | August 2019 | 3.4 | 3.4 | 0.3 | 3.5 | 3.7 | 1.10x | |||||||
Knox | Midstream | December 2019 | 14.8 | 5.7 | 0.6 | 5.5 | 6.1 | 1.07x | |||||||
Sierra | Midstream | March 2020 | 13.7 | 13.7 | 0.6 | 13.7 | 14.3 | 1.04x | |||||||
|
|
| $76.5 | $64.5 | $6.2 | $64.1 | $70.2 | 1.09x | |||||||
Realised Portfolio
Project Name | Subsector | Commitment Date | Committed Capital ($mm) | Invested Capital ($mm) | Gross Realised Capital ($mm)1 | Gross Unrealised Value ($mm) | Gross Realised Capital & Unrealised Value ($mm) | Gross MOIC2 |
Shiner | E&P | June 2019 | 6.0 | 4.3 | 4.9 | - | 4.9 | 1.15x |
Ducks | E&P | November 2019 | 13.8 | 6.8 | 7.7 | - | 7.7 | 1.13x |
Beach II | Services | January 2020 | 8.7 | 8.7 | 8.9 | - | 8.9 | 1.02x |
|
|
| $28.5 | $19.8 | $21.5 | - | $21.5 | 1.09x |
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 on the investment.
Consolidated Portfolio Key Stats at Entry As of 30 June 20202 | |
Weighted Avg. Entry Basis | 97.2% |
Weighted Avg. All-in Coupon at Entry | 9.9% p.a. |
Weighted Avg. Undrawn Spread at Entry | 3.2% p.a. |
Weighted Avg. Tenor at Entry | 2.8 years |
Weighted Avg. Call Premium at Entry | 105.3 |
Security | 100% Secured |
Coupon Type | 100% Floating Rate |
Subsequent Events
The investment opportunity for RCOI remains robust with several actionable opportunities within the pipeline, including some market-based activities that meet our risk adjusted return thresholds. In terms of existing deal activity, Project Knox made a sizable draw in July with the remainder expected to be drawn in Q4. Project Chase is expected to make its final draw in Q3 and Project Mariners will likely draw on the revolver periodically throughout Q3 and Q4.
Manager Outlook
§ The Investment Manager's focus on asset-based lending with structural protections and conservative loan-to-value ratios has resulted in relatively strong fundamental performance during very challenging market conditions. Despite the large number of investment opportunities that have been reviewed, the Investment Manager has remained very disciplined in deploying capital.
§ The current macro environment for energy continues to face a significant amount of volatility as the coronavirus pandemic continues to persist globally. While spot prices for oil have modestly improved, the uncertainty around global demand remains and continues to impact the broader energy market. In light of the current market dynamic, many companies will need access to capital and have limited options for financing. In addition to providing support to existing portfolio companies, the Investment Manager expects to take advantage of opportunities that arise from market dislocations and the limited capital available for energy companies.
Christopher Abbate and Jamie Brodsky, Co-Founders of Riverstone Credit, added:
"The market for energy continues to be difficult, and valuations across public markets have been impacted significantly by the coronavirus pandemic. The RCOI portfolio has been resilient on a relative basis and remains profitable despite challenges in the broader market. We believe that the investment strategy's differentiated attributes of providing short duration loans with conservative loan-to-value ratios and protective features have been highly advantageous and will support our ability to generate attractive returns for our shareholders longer term."
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. 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 an initial focus on North America. RCOI intends to create a diversified portfolio across basins, commodities, and end-markets to provide natural synergies and hedges that could enhance the overall stability of the portfolio.
For further details, see 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:
Daniel Lim
+1 212 271 6266
[1] Gross realised capital is total gross income realised on invested capital.
[2] Metrics based on the current portfolio.