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25 Oct 2019 07:00
Riverstone Credit Opportunities Income Plc
Interim Management Statement
London, UK 25 October 2019: Riverstone Credit Opportunities Income Plc ("RCOI" or the "Company") is issuing this Interim Management Statement ("IMS") for the period from 30 June 2019 to 30 September 2019 (the "period").
Highlights
·; Key Financials (unaudited)
o NAV as at 30 September 2019 | $99.78 million |
o NAV per share as at 30 September 2019 | $0.998 |
o Market capitalisation at 30 September 2019 | $97.5 million |
o Share Price at 30 September 2019 | $0.975 |
o Profit/(loss) during period | $1.8 million |
§ As of 30 September 2019, RCOI had a NAV per share of $0.998.
§ Of the $100.0 million of cash raised in the IPO, a total of $55.7 million has been committed to investments of which $29.0 million has been invested. RCOI finished the Period with a cash balance of $70.2 million (including cash held at the SPVs) and no debt.
§ During the Period, the Company made commitments to Project Mariners ($14.9 million), Project Chase ($12.3 million) and Project Remington ($3.4 million).
Commitments and Investments
As of 25 October 2019, the Company was 56 per cent. committed and 29 per cent. invested. The portfolio highlights for the 6 investments are summarized below.
Project Name | Subsector | Commitment Date | Commitment Amount | Invested Amount |
Yellowstone | Midstream | 6/13/2019 | 5.8 | 5.8 |
Shiner | Exploration & Production | 6/13/2019 | 6.0 | 3.1 |
Alp | Exploration & Production | 6/18/2019 | 13.3 | 2.7 |
Mariners | Services | 7/11/2019 | 14.9 | 13.9 |
Chase | Exploration & Production | 7/23/2019 | 12.3 | - |
Remington | Midstream | 8/1/2019 | 3.4 | 3.4 |
55.7 | 29.0 |
Consolidated Portfolio Key Stats at Entry As of 24 October 2019 | |
Weighted Avg. Structuring Fee/OID | 97.5% |
Weighted Avg. All-in Coupon at Entry | 10.4% |
Weighted Avg. Undrawn Spread at Entry | 4.3% |
Weighted Avg. Tenor at Entry | 2.6 years |
Weighted Avg. Call Premium at Entry | 105.2 |
Security | 100% Secured |
Coupon Type | 100% Floating Rate |
Manager Outlook
§ The Investment Manager continues to focus on originating and underwriting transactions with strong risk-adjusted returns and has committed over half the proceeds raised in the IPO.
§ The current investment environment is highly attractive for deal origination, as the capital markets and bank market have been largely inaccessible for energy companies, especially those that are in the small to middle market.
§ Despite the large number of investment opportunities that have been reviewed, the Investment Manager has remained very disciplined in deploying capital. The focus on asset-based lending with structural protections and conservative loan-to-value ratios provides the portfolio with resilience through commodity and economic cycles.
§ While RCOI is 56 per cent. committed at the end of Q3, the Investment Manager still expects to pay a minimum dividend of 2.2 cents.
Reuben Jeffery III, Chairman of RCOI, commented:
"We are pleased with the progress that RCOI has made in its first four months of operations, having committed over half of the fund to transactions. With a robust deal pipeline, we expect that the portfolio will be substantially committed by the end of 2019. Consistent with what we promised investors, we expect that RCOI will be able to announce its first dividend in February of 2020."
David M. Leuschen and Pierre F. Lapeyre Jr., Co-Founders of Riverstone, added:
"The current environment for energy companies, especially within E&P, continues to be challenging, as commodity prices and energy equities exhibit significant volatility. However, our credit investments have proven to be able to generate attractive risk-adjusted returns consistently while protecting against the downside during this prolonged industry downturn."
¹ Loans that are committed are loans with signed definitive documentation where a structuring fee and/or original issue discount have been earned and the Company earns an undrawn spread. Loans that are invested are loans with signed definitive documentation where a structuring fee and/or original issue discount have been earned, the Company has funded the loan to the borrower and the Company is earning a drawn spread.
- Ends -
RCOI's Prospectus is available to view at: www.RiverstoneCOI.com
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
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