15 Aug 2019 07:00
Riverstone Credit Opportunities Income Plc
Final results for the half year ended 30 June 2019
London, UK 15 August 2019: Riverstone Credit Opportunities Income Plc ("RCOI" or the "Company") announces its Half Year Results for the period (the "Period") from 28 May 2019 to 30 June 2019.
Highlights
§ As of 30 June 2019, RCOI had a NAV per share of $0.985.
§ Of the $100 million of cash raised in the IPO, in the 34 days to Period end, $6.0 million has been invested with a total of $25.2 million committed to investments.[1] RCOI finished the Period with a cash balance of $93.2 million (including cash held at the SPVs) and no debt.
Summary Performance
30 June 2019
NAV | $98.48 million |
NAV per share | $0.985 |
Market capitalisation | $100.00 million |
Share Price | $1.00 |
Total comprehensive income for the period | $0.48 million |
Commitments and Investments
During the Period, the Company made the following commitments:
§ Committed $5.9 million to Project Yellowstone
§ Committed $6.0 million to Project Shiner
§ Committed $13.3 million to Project Alp
Subsequent Events
Subsequent to the Period end, the Company committed an additional $30.6 million as follows:
§ Committed $14.9 million to Project Mariners
§ Committed $12.3 million to Project Chase
§ Committed $3.4 million to Project Remington
As of 14 August 2019, the Company was 24 per cent. invested and 56 per cent. committed. The portfolio highlights pro forma for the six investments today are summarised below based on committed capital.
Consolidated Portfolio Key Stats at Entry As of 14 August 2019 | ||||
|
|
|
|
|
Weighted Average Structuring Fee/OID |
| 97.5 |
|
|
Weighted Average Drawn Coupon at Entry |
| 10.6% |
|
|
Weighted Average Undrawn Spread at Entry |
| 4.3% |
|
|
Weighted Average Tenor at Entry |
| 2.6 Years |
|
|
Weighted Average Call Premium at Maturity |
| 105.2 |
|
|
Security |
| 100% Secured |
|
|
Coupon Type |
| 100% Floating Rate |
|
|
Manager Outlook
§ The investment opportunity for RCOI remains robust with several actionable investments in various stages of review and negotiation. The Company continues to actively evaluate new investment opportunities and expects to be substantially committed by the end of the year.
§ The Investment Manager believes the lack of financing available to energy companies in the public markets has created a wide investment universe for RCOI to capitalise on.
§ 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.
Reuben Jeffery III, Chairman of RCOI, commented:
"We are pleased with the successful IPO and establishment of RCOI. Supported by one of the largest energy investment platforms globally, the investment team is well-positioned to invest the portfolio in attractive opportunities and generate a consistent dividend for shareholders"
David M. Leuschen and Pierre F. Lapeyre Jr., Co-Founders of Riverstone, added:
"The market opportunity for energy credit continues to be very strong. Despite challenges in the macro environment, there remains a growing need for capital as the demand for energy is expected to continue increasing over the long-term. With its debt focused strategy, RCOI is well-positioned to take advantage of the current market dynamic to produce strong returns with downside protection."
[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 coupon.
- 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:
Brian Potskowski Fraser Johnston-Donne
+44 20 3206 6300
Riverstone Cred (RCOI)