Last checked at 
25 Oct 2023 07:00
25 October 2023
Riverstone Credit Opportunities Income
Quarterly Update
Full Deployment Sustained Resulting in Robust Q3 Performance
Targeted annual dividend returns of 8-10% on subscribed capital
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 30 September 2023, in which full deployment in energy transition investments now means that shareholders will benefit from the portfolio's high earnings power and targeted annual dividend returns of 8-10% on subscribed capital.
Unaudited Net Asset Value
As at 30 September 2023, the unaudited net asset value per Ordinary Share, including net revenue for the quarter ended 30 September, stayed stable at $1.07 ($1.07: 30 June 2023). The stability was due to continued strong performance by the unrealised portfolio.
Portfolio Summary and Key Performance Indicators
· Portfolio of 100% floating rate, short duration, senior secured loans supporting RCOI's ambition to deliver annual returns to shareholders of 8-10% whilst investing in companies engaged in the energy transition
· 39.8% NAV total return5 since IPO in May 2019 (33.7% at 31 December 2022)
· 29.6 cents in dividends paid since inception6
Portfolio Update
· Against a backdrop of strong energy market performance, the global focus on decarbonisation and the Company's unique focus on short duration lending, the Company remains extremely well positioned in the current environment with a portfolio of accredited energy-transition focused investments entirely through green or sustainability-linked structured loans.
· Based on current portfolio commitments, as well as the addition of the revolving credit facility in Q4 2022, the Company is nearly fully invested as of 30 September 2023.
Reuben Jeffery III, Chairman of RCOI, commented:
"The RCOI portfolio performed strongly in Q3 2023. 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 the elevated value for our shareholders in the rapidly changing macro environment.
Since launch in May 2019, the Company has now delivered a total NAV return5 of 39.8% (33.7% at 31 December 2022) including 29.6 cents per share in dividend distributions6."
Christopher Abbate and Jamie Brodsky, Co-Founders of Riverstone Credit, the investment adviser, added:
"We continue to be encouraged by the Company's strong performance and its advantageous positioning in the current environment. In addition to the attractive financial returns delivered, we would also highlight that the portfolio consists entirely of Green and Sustainability-Linked loans that contribute positively towards the energy transition across a wide variety of applications. The Company's near complete deployment in such investments means that shareholders will benefit from full exposure to the high earnings power of the portfolio's energy transition investments, which should further supplement available income 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 30 Sep 20232 | % of Par as of 30 June 20232 | 30 Sep 2023 Gross MOIC | 30 Sep 2023 Net MOIC | |
Caliber Midstream3 | Infrastructure | Aug-19 | 4.0 | 4.0 | 0.5 | 0.5 | 1.0 | 36.12% | 38.44% | 0.24x | 0.17x | |
Imperium3NY LLC | Energy Transition | Apr-21 | 6.8 | 5.4 | 6.7 | 0.9 | 7.6 | 0.914 | 0.914 | 1.42x | 1.34x | |
Blackbuck Resources LLC | Infrastructure | Jun-21 | 11.5 | 11.0 | 4.1 | 10.3 | 14.4 | 103.19% | 102.57% | 1.31x | 1.23x | |
Harland & Wolff Group Holdings PLC | Infrastructure Services | Mar-22 | 14.6 | 14.6 | 1.2 | 17.9 | 19.1 | 106.92% | 106.11% | 1.31x | 1.24x | |
Seawolf Water Resources | Services | Sept-22 | 9.0 | 9.0 | 0.6 | 13.1 | 13.6 | 13.064 | 12.994 | 1.51x | 1.44x | |
EPIC Propane Pipeline, LP | Infrastructure | Sept-22 | 13.9 | 13.9 | 1.9 | 13.9 | 15.8 | 99.33% | 99.24% | 1.14x | 1.06x | |
Hoover Circular Solutions | Infrastructure Services | Nov-22 | 13.7 | 13.7 | 1.1 | 14.2 | 15.4 | 98.32% | 98.18% | 1.12x | 1.04x | |
Clean Energy Fuels Corp | Energy Transition | Dec-22 | 13.9 | 13.9 | 1.4 | 13.9 | 15.3 | 99.39% | 99.47% | 1.11x | 1.03x | |
Max Midstream | Infrastructure | Dec-22 | 5.0 | 5.0 | 0.4 | 5.2 | 5.6 | 101.38% | 100.84% | 1.13x | 1.05x | |
Streamline Innovations Inc. | Infrastructure Services | Jun-23 | 9.9 | 3.5 | 0.3 | 3.6 | 3.8 | 99.20% | 99.13% | 1.08x | 1.06x | |
$102.3 | $94.0 | $18.2 | $93.5 | $111.7 |
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| 1.19x | 1.11x | ||||
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| Direct Lending Consolidated Portfolio Key Stats at Entry As of 30 September 2023 |
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| Weighted Avg. Entry Basis | 97.5% |
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| Weighted Avg. All-In Benchmark Rate at Entry | 4.6 p.a. |
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| Weighted Avg. Floating Rate Spread at Entry | 7.1 p.a. |
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| Weighted Avg. All-in Coupon at Entry | 11.7 p.a. |
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| Weighted Avg. Undrawn Spread at Entry | 4.0 p.a. |
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| Weighted Avg. Tenor at Entry | 3.4 years |
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| Weighted Avg. Call Premium at Entry | 102.6 |
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| Security | 100% Secured |
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Realised Portfolio
Investment Name | Subsector | Commitment Date | Realisation Date | Cumulative Committed Capital ($mm) | Cumulative Invested Capital ($mm) | Gross Realised Capital ($mm)1 | 30 Sep 2023 Gross MOIC | 30 Sep 2023 Net MOIC |
Rocky Creek Resources | Exploration & Production | Jun-19 | Dec-19 | 6.0 | 4.3 | 4.9 | 1.15 x | 1.10 x |
CIG Logistics | Infrastructure Services | Jan-20 | Jan-20 | 8.7 | 8.7 | 8.9 | 1.02 x | 0.97 x |
Mallard Exploration | Exploration & Production | Nov-19 | Apr-20 | 13.8 | 6.8 | 7.7 | 1.13 x | 1.08 x |
Market Based | Multiple | Aug-20 | Nov-20 | 13.4 | 13.4 | 13.6 | 1.01 x | 0.96 x |
Project Yellowstone | Infrastructure | Jun-19 | Mar-21 | 5.8 | 5.8 | 7.2 | 1.23 x | 1.18 x |
Ascent Energy | Exploration & Production | Jun-19 | Jun-21 | 13.3 | 13.3 | 16.1 | 1.21 x | 1.16 x |
Pursuit Oil & Gas | Exploration & Production | Jul-19 | Jun-21 | 12.3 | 12.3 | 15 | 1.22 x | 1.16 x |
U.S. Shipping | Infrastructure Services | Feb-21 | Aug-21 | 6.5 | 6.5 | 7.3 | 1.13 x | 1.07 x |
Aspen Power Partners | Infrastructure | Dec-20 | Oct-21 | 6.9 | 3.4 | 4.3 | 1.27 x | 1.22 x |
Project Mariners | Infrastructure Services | Jul-19 | Apr-22 | 13.2 | 13.2 | 17.6 | 1.33x | 1.28 x |
Roaring Fork Midstream | Infrastructure | Mar-21 | Jun-22 | 5.9 | 5.9 | 6.9 | 1.16x | 1.11 x |
FS Crude, LLC | Infrastructure | Mar-20 | Sept-22 | 13.7 | 13.7 | 16.9 | 1.23x | 1.18 x |
EPIC Propane Pipeline, LP | Infrastructure | Dec-19 | Sept-22 | 14.8 | 14.8 | 19.6 | 1.32x | 1.27 x |
Circulus Holdings, PBLLC | Infrastructure | Aug-21 | Oct-22 | 12.3 | 12.3 | 14.0 | 1.14x | 1.09 x |
Hoover Circular Solutions | Infrastructure Services | Oct-20 | Nov-22 | 15.4 | 15.4 | 17.0 | 1.10x | 1.05 x |
Streamline Innovations Inc. | Infrastructure Services | Nov-21 | Jun-23 | 13.8 | 6.9 | 8.9 | 1.29x | 1.23x |
$175.9 | $156.7 | $185.7 | 1.18x | 1.13x |
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 |
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Jérémie Birnbaum |
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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 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 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.
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.
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.
3 Includes Caliber HoldCo Escrow, Caliber MFC LLC equity, Caliber Midstream Term Loan & Priming Facility.
4 Reflects the total fair market value in millions.
5 NAV total return equals cumulative paid dividend cents per share and NAV per share as of 30 September 2023 divided by the opening capital net of share issuance costs as of 28 May 2019.
6 Reflects cumulative dividend cents per share declared as of 30 June 2023 and paid as of 30 September 2023.