Last checked at 
1 Dec 2022 07:00
1 December 2022
Riverstone Credit Opportunities Income Plc
Successful Refinancing & Upsizing of Hoover CS Investment
Realisation of Existing RCOI Hoover CS Loan with $1.6 Million Gross Profit
Riverstone Credit Opportunities Income ("RCOI"), the LSE-listed energy infrastructure and energy-transition credit investor, is pleased to announce a successful realization of the Company's investment in Hoover CS (the "Borrower" or the "Company") as well as an upsized investment in a new sustainability-linked first lien term loan (the "Term Loan") for the Borrower. With this upsize, RCOI is now nearly fully invested, with the portfolio almost exclusively green loans and sustainability-linked loans.
Hoover CS, a leading provider of sustainable packaging and fleet management solutions, is paving the way for customers across the chemical, refining and general industrial-end markets to move away from single-use containers. Through its large rental fleet of reusable liquid and dry intermediate bulk containers and ISO tanks, combined with integrity management and fleet management services, Hoover CS's sustainable packaging solutions facilitate circularity across the supply chain, yielding an optimized environmental footprint through reduced plastic, water conservation, and lower greenhouse gas emissions.
In October 2020, RCOI committed $7.4 million to the Borrower's previous $225 million first lien term loan as part of a comprehensive recapitalization of the business also involving a $35 million second lien term loan and over $90 million of additional private equity investment. Post-closing, RCOI received repayments totaling $3.6 million throughout 2021 and 2022 bringing RCOI's commitment down to $3.8 million. On 1 September 2022, RCOI was able to opportunistically purchase $8.0 million of incremental first lien term loan bringing RCOI's previous commitment up to $11.7 million. On 30 November 2022, all of the Borrower's outstanding debt was refinanced by the new $160 million sustainability-linked, first lien term loan due November 2026. As part of the new deal allocations, RCOI's commitment was further upsized to $13.7 million and the expected returns are in line with the initial investment.
As part of the closing, the new sustainability-linked, first lien term loan received a secondary party opinion ("SPO") from Sustainable Fitch to confirm that the terms are structured in accordance with the LSTA Sustainability-Linked Loan ("SLL") Principles and aligned with all five pillars. The new credit facility successfully links three key performance indicators ("KPIs") to potential loan price increases for non-compliance. The three KPIs are linked to 1) the percent of electricity the Borrower sources from non-fossil fuel energy sources, 2) a reduction of waste water disposal, and 3) the precent of bulk chemicals purchased by Hoover CS that is shipped in sustainable packaging.
Danny Flannery, Managing Director of Riverstone Credit, the Company's Investment Manager said:
"Hoover CS has a demonstrated track record of helping its customers across multiple end markets improve environmental performance and the circularity of their supply chains, and we are pleased to partner with them on their next phase of growth. This investment is in-line with our stated yield target and focus on sustainability-linked loans. It also means that RCOI is now almost fully invested."
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.