REG - Riverstone Credit - Investment and Quarterly Update

Riverstone Credit Opportunities IncomeAnnouncement

22/04/2025 07:00

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RNS Number : 6369F  Riverstone Credit Opps. Inc PLC  22 April 2025

22 April 2025

LEI: 213800KSL6C11YUB3H11

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Riverstone Credit Opportunities Income

Investment and Quarterly Update

Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the
LSE-listed energy infrastructure and energy-transition credit investor,
announces its portfolio performance for the quarter ended 31 March 2025.

 

Portfolio Highlights & Expected Capital Return

NAV/share was $0.88 on 31 March 2025, a decline of $0.04/share over the
quarter. This change was largely driven by the Company's investments in
Harland & Wolff, Seawolf and Max Midstream.

The Harland & Wolff administration continues to move forward with an
expected distribution of an additional $3.1 million by the end of April.
 While the amount being distributed is slightly higher than expected, the
total amounts available to the Company on 31 March 2025 are slightly lower
than expected as of 31 December 2024. The total reduction in the value of this
investment was $1.4 million, or approximately $0.02/share. The key components
of the adjustment include the write-off of interest accrued (which is a
non-cash adjustment), additional accrued interest for the super-priority
facility, and an increased reserve retained to support the development of the
Islandmagee project. These were partially offset by favorable foreign exchange
movements.  The Company is expecting one final distribution from the
Administration in the amount of $1.1million (based on exchange rates as of 31
March 2025).

Seawolf's business remains strong, albeit facing uncertainty given recent
market disruptions. Trailing earnings for the first quarter were lower,
however, leading to a modest reduction in the value of the equity portion of
the investment. The total reduction in the value of this investment was $0.4
million, or $0.01/share.

Max Midstream is working through a number of different refinancing options and
requested more time from the administrative agent, on behalf of the Company
and other RCP lenders, to execute these plans. Accordingly, the lenders agreed
to extend the loan to Max Midstream until the end of June 2025. In connection
with the extension, a 2% per month extension fee was assessed and certain
provisions within the loan agreement strengthened. Because the extension was
pending on 31 March 2025, the loan was initially marked down from its
valuation as of 31 December 2024. The total reduction in the value of this
investment was $0.2 million or less than $0.01/share. The payment of the
extension fee to the Company (equal in aggregate to $0.3 million) subsequent
to the quarter end is expected to offset this mark down. The Company remains
confident the loan will be repaid in full, albeit over a longer timeframe than
previously anticipated.

Due to higher than normal expenses in the quarter ending 31 March 2025, it is
anticipated that the Company will only be able to pay a nominal dividend for
this quarter.

However, once the Company has received its expected cash payment from Harland
& Wolff, it anticipates returning cash to Shareholders equal to
approximately $16.0-17.0 million via a mandatory Share redemption. The
Company will make a further announcement in due course.

Portfolio Summary and Key Performance Indicators

 

·    Portfolio of 100% floating rate, short duration, senior secured
loans, from investing in companies engaged in driving forward the energy
transition

·    29.5% NAV total return(5) achieved since IPO in May 2019

·    38.8 cents in dividends paid since inception(6)

 

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 31 Mar 2025(2)  % of Par as of 31 Dec 2024(2)  31 Mar 2025 Gross MOIC  31 Mar 2025 Net MOIC
 Caliber Midstream(3)                    Infrastructure           Aug-19           4.0                                 4.0                                0.6                              0.5                           1.1                                                  0.51(4)                        0.51(4)                        0.28x                   0.05x
 Imperium3NY LLC                         Energy Transition        Apr-21           6.8                                 5.4                                6.7                              0.0                           6.7                                                  0.01(4)                        0.01(4)                        1.25x                   1.08x

 Harland & Wolff Group Holdings PLC      Infrastructure Services  Mar-22           14.6                                14.6                               2.1                              8.5                           10.6                                                 8.49(4)                        8.92(4)                        0.73x                   0.60x
 Seawolf Water Resources                 Services                 Sept-22          9.0                                 9.0                                2.3                              10.9                          13.2                                                 10.90(4)                       11.32(4)                       1.47x                   1.36x

 Hoover Circular Solutions               Infrastructure Services  Nov-22           13.7                                13.7                               3.8                              14.4                          18.2                                                 99.88%                         99.81%                         1.33x                   1.23x
 Max Midstream                           Infrastructure           Dec-22           5.0                                 5.0                                1.6                              5.0                           6.6                                                  99.78%                         104.30%                        1.32x                   1.22x
 Streamline Innovations Inc.             Infrastructure Services  Jun-23           9.9                                 5.4                                1.5                              5.5                           7.0                                                  100.67%                        100.64%                        1.30x                   1.23x
                                                                                   $63.0                               $57.1                              $18.7                            $44.8                         $63.5                                                                                                              1.11x                   0.99x

Realised Portfolio

 Investment Name              Subsector                     Commitment Date  Realisation Date  Cumulative Committed Capital ($mm)  Cumulative Invested Capital ($mm)  Gross Realised Capital ($mm)(1)  31 Mar 2025 Gross MOIC  31 Mar 2025Net MOIC
 Rocky Creek Resources        Exploration & Production      Jun-19           Dec-19            6.0                                 4.3                                4.9                              1.15 x                  1.13 x
 CIG Logistics                Infrastructure Services       Jan-20           Jan-20            8.7                                 8.7                                8.9                              1.02 x                  1.02 x
 Mallard Exploration          Exploration & Production      Nov-19           Apr-20            13.8                                6.8                                7.7                              1.13 x                  1.12 x
 Market Based                 Multiple                      Aug-20           Nov-20            13.4                                13.4                               13.6                             1.01 x                  1.00 x
 Project Yellowstone          Infrastructure                Jun-19           Mar-21            5.8                                 5.8                                7.2                              1.23 x                  1.16 x
 Ascent Energy                Exploration & Production      Jun-19           Jun-21            13.3                                13.3                               16.1                             1.21 x                  1.13 x
 Pursuit Oil & Gas            Exploration & Production      Jul-19           Jun-21            12.3                                12.3                               15                               1.22 x                  1.13 x
 U.S. Shipping                Infrastructure Services       Feb-21           Aug-21            6.5                                 6.5                                7.3                              1.13 x                  1.10 x
 Aspen Power Partners         Infrastructure                Dec-20           Oct-21            6.9                                 3.4                                4.3                              1.27 x                  1.24 x
 Project Mariners             Infrastructure Services       Jul-19           Apr-22            13.2                                13.2                               17.6                             1.33 x                  1.21 x
 Roaring Fork Midstream       Infrastructure                Mar-21           Jun-22            5.9                                 5.9                                6.9                              1.16 x                  1.10 x
 FS Crude, LLC                Infrastructure                Mar-20           Sept-22           13.7                                13.7                               16.9                             1.23 x                  1.1 2 x
 EPIC Propane Pipeline, LP    Infrastructure                Dec-19           Sept-22           14.8                                14.8                               19.6                             1.32 x                  1.20 x
 Circulus Holdings, PBLLC     Infrastructure                Aug-21           Oct-22            12.3                                12.3                               14.0                             1.14 x                   1.09 x
 Hoover Circular Solutions    Infrastructure Services       Oct-20           Nov-22            15.4                                15.4                               17.0                             1.10 x                  1.01 x
 Streamline Innovations Inc.  Infrastructure Services       Nov-21           Jun-23            13.8                                6.9                                8.9                              1.29 x                  1.22 x
 Clean Energy Fuels Corp      Energy Transition             Dec-22           Dec-23            13.9                                13.9                               15.7                             1.14 x                  1.09 x
 EPIC Propane Pipeline, LP    Infrastructure                Sept -22         Apr-24            13.9                                13.9                               17.2                             1.24x                   1.18x
 Blackbuck Resources LLC      Infrastructure                Jun-21           Sept - 24         11.5                                11.0                               16.1                             1.46x                   1.32x
                                                                                               $215.2                              $195.5                             $234.8                           1.20x                   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
 Jérémie Birnbaum
 James Bouverat (Sales)

 
Media Contacts:
Burson Buchanan
 Helen Tarbet    Tel: +44 (0) 20 7466 5109
 Henry Wilson    Tel: +44 (0) 20 7466 5111
 Verity Parker   Tel: +44 (0) 20 7466 5197
                 Email:
                 rcoi@buchanan.uk.com (mailto: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.

 

As previously announced, on January 2, Riverstone Holdings LLC, and their
affiliate Riverstone Investment Group (collectively, "Riverstone") entered
into a sub management agreement for RCOI with Breakwall Capital LP.
Breakwall is an independent asset manager regulated by the SEC as a Registered
Investment Advisor. It is owned and operated by the former members of the
Riverstone Credit Partners team.

 

For further details, see https://www.riverstonecoi.com/
(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.

 

(#_ednref1) 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 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 31 March 2025 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 31 March 2025
and paid as of 31 March 2025.

( )

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