Last checked at 
13 Oct 2022 07:00
13 October 2022
Riverstone Credit Opportunities Income Plc
EPIC Propane Investment Extended, Restructured as a Sustainability-Linked Loan
c. $1m in Realised Profits From Extension
Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the LSE-listed energy infrastructure and energy-transition credit investor, is pleased to announce the successful amendment and extension of its investment in EPIC Propane, a sponsor-backed infrastructure company that provides propane purity offtake transportation to the Gulf Coast export market. EPIC Propane is part of the broader EPIC Midstream system that includes over 1,695 miles of crude oil and natural gas liquids pipelines, collectively referred to as "EPIC".
The loan's maturity was extended to September 2026 and the optional prepayment feature was amended to add a two-year make-whole provision. RCOI has realised c. $1m profits from the extension. All other material economic terms remain the same. As part of the amendment, the loan was converted to a sustainability linked loan and all of the economics associated with the original transaction were realised, including the exit premium. Additionally, as part of the amendment, RCOI's allocation to the loan was reduced from $14.8m to $13.9m in order to comply with the Company's diversification policies.
The newly amended term loan will receive a Secondary Party Opinion from Sustainable Fitch to confirm the terms of the loan are aligned with the Sustainability-Linked Loan Principles. EPIC's sustainability strategy places a large focus on leak detection and reduction, supported by 1,695 miles of leak detection fibre installed along its pipelines, which collects real-time data from the pipeline 24 hours per day. The sustainability performance target for the transaction is the reduction of reportable releases from its pipelines, including both natural gas liquids and crude oil.
Christopher Abbate, Co-Head of Riverstone Credit, the Company's Investment Manager said:
"Since our initial investment in EPIC Propane, the borrower has been a steady and strong performer, completing construction of a mission-critical piece of energy infrastructure during the tumultuous COVID pandemic. We were pleased to extend this investment which we see as a win for both the borrower and the Company.
"We have now achieved over 10 deal realisations since March 2020 with a blended IRR of 17% over that time period and remain very pleased with portfolio performance as a whole. With the existing portfolio now re-balanced towards green and sustainability linked loans and a robust pipeline of similar investment opportunities, we believe the Company represents a compelling opportunity for investor value creation."
For Riverstone Credit Opportunities Income Plc:
Adam Weiss +1 212 271 2953
Media Contacts:
Buchanan |
|
Helen Tarbet Henry Wilson Jon Krinks Verity Parker | Tel: +44 (0) 20 7466 5109 Tel: +44 (0) 20 7466 5111 Tel: +44 (0) 20 7466 5199 Tel: +44 (0) 20 7466 5197 Email: rcoi@buchanan.uk.com |
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.