Riverstone Credit Opps. Inc PLC 1Q21 Portfolio Valuations & Recent Activity (3620W)

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RNS Number : 3620W

Riverstone Credit Opps. Inc PLC

23 April 2021

Riverstone Credit Opportunities Income Announces 1Q21 Quarterly Portfolio Valuations & Recent Activity

London, UK (23 April 2021) - Riverstone Credit Opportunities Income ("RCOI") announces its quarterly portfolio summary as of 31 March 2021, inclusive of updated quarterly unaudited fair market valuations:

As of 31 March 2021, the unaudited net asset value per Ordinary Share, including net revenue for the quarter ended 31 March, was $1.04.

Cumulative Portfolio Summary

Unrealised Portfolio [1]

 
 Investment       Subsector      Commitment    Cumulative   Cumulative    Gross       Gross        Gross       % of     Gross 
    Name                            Date       Committed     Invested    Realised   Unrealised    Realised    Par as     MOIC 
                                                Capital      Capital     Capital      Value      Capital &     of 31 
                                                 ($mm)        ($mm)      ($mm)(1)     ($mm)      Unrealised    March 
                                                                                                   Value      2021(2) 
                                                                                                   ($mm) 
   Ascent       Exploration & 
    Energy        Production       Jun-19         13.3         13.3        7.3         8.5          15.8      101.6%    1.19 x 
 Pursuit Oil    Exploration & 
    & Gas         Production       Jul-19         12.3         12.3        2.1         12.6         14.7      102.1%    1.19 x 
   Project     Infrastructure 
   Mariners        Services        Jul-19         13.2         13.2        6.1         10.3         16.4      105.4%    1.22 x 
   Caliber 
  Midstream       Midstream        Aug-19         3.4          3.4         0.4         3.7          4.1        95.2%    1.20 x 
    Epic 
   Propane 
   Pipeline       Midstream        Dec-19         14.8         14.8        1.6         15.2         16.7       99.7%    1.13 x 
  FS Crude        Midstream        Mar-20         13.7         13.7        9.0         6.6          15.7       98.5%    1.14 x 
   Hoover 
   Circular    Infrastructure 
  Solutions        Services        Oct-20         7.4          7.4         3.8         4.0          7.8        99.6%    1.06 x 
 Aspen Power       Energy 
   Partners       Transition       Dec-20         6.9          3.4         0.2         3.5          3.7       100.2%    1.10 x 
   Roaring 
     Fork 
  Midstream       Midstream        Feb-21         5.9          1.6         0.1         1.7          1.8        99.5%    1.11 x 
    U.S. 
   Shipping       Midstream        Mar-21         6.5          6.5         0.3         6.5          6.8       100.1%    1.04 x 
                                              -----------  -----------  ---------  -----------  -----------  --------  ------- 
                                                 $97.4        $89.6       $31.0       $72.4        $103.4               1.15 x 
 

Realised Portfolio

 
  Investment       Subsector       Commitment      Realisation    Cumulative    Cumulative       Gross      Gross MOIC 
     Name                             Date            Date         Committed     Invested      Realised 
                                                                    Capital       Capital       Capital 
                                                                     ($mm)         ($mm)       ($mm)(1) 
 Rocky Creek     Exploration & 
   Resources       Production        Jun-19          Dec-19           6.0           4.3           4.9         1.15 x 
   Mallard       Exploration & 
  Exploration      Production        Nov-19          Apr-20          13.8           6.8           7.7         1.13 x 
     CIG        Infrastructure 
   Logistics        Services         Jan-20          Jan-20           8.7           8.7           8.9         1.02 x 
 Market Based      Multiple          Aug-20          Nov-20          13.4          13.4          13.6         1.01 x 
   Project 
  Yellowstone      Midstream         Jun-19          Mar-21           5.8           5.8           7.2         1.23 x 
                                                                 ------------  ------------  ------------  ----------- 
                                                                     $47.8         $39.0         $42.3        1.08 x 
 

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.

 
  Direct Lending Consolidated Portfolio Key Stats at Entry As of 31 March 
                                  2021 (4) 
 Weighted Avg. Entry Basis                          97.3% 
                                                   ------------------------ 
 Weighted Avg. All-in Coupon at Entry               9.5% p.a. 
                                                   ------------------------ 
 Weighted Avg. Undrawn Spread at Entry              4.3% p.a. 
                                                   ------------------------ 
 Weighted Avg. Tenor at Entry                       2.8 years 
                                                   ------------------------ 
 Weighted Avg. Call Premium at Entry                104.9 
                                                   ------------------------ 
 Security                                           100% Secured 
                                                   ------------------------ 
 Coupon Type                                        100% Floating Rate 
                                                   ------------------------ 
 

Manager Outlook

-- The macro environment has been volatile for over a year, since the COVID-19 pandemic caused turmoil starting in March of last year. Despite this, the portfolio has remained relatively resilient and has continued to deliver both income generation and capital appreciation to investors.

-- After experiencing a tremendous downturn for most of 2020, oil prices improved towards the end of last year and the first quarter of this year. With COVID-19 vaccinations continuing to rollout, demand is expected to recover this year, though the magnitude of the recovery remains uncertain. A more stable market environment will help facilitate refinancings and exits for the RCOI portfolio. Meanwhile, the Investment Manager continues to identify attractive opportunities, including within infrastructure, infrastructure services and energy transition, its key areas of focus going forward.

Reuben Jeffery III, Chairman of RCOI, commented:

"As we pass the first anniversary of COVID-19, the RCOI portfolio has continued to generate value for shareholders in spite of a historically challenging market backdrop. The unrealised portfolio is marked at a 1.15x, reflecting a net asset value of $1.04 per Ordinary Share. The portfolio has returned 16 cents per share to investors since IPO."

Christopher Abbate and Jamie Brodsky, Co-Founders of Riverstone Credit, added:

"While we certainly did not predict a prolonged global pandemic would occur, the relative performance of RCOI has demonstrated the key competitive advantages of our strategy. Our focus on downside protection has not only protected principal but also yielded steady returns to investors. As we look forward, we seek to further increase the portfolio's exposure to sectors that we expect to see secular tailwinds and have limited correlation to broader commodity prices, including infrastructure, infrastructure services and energy transition."

   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, which span conventional energy as well as low carbon and renewable sources. 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 a primary focus on infrastructure businesses and going forward those with de-carbonization strategies in North America. RCOI intends to create a diversified portfolio across basins, commodities, technologies and end-markets to provide natural synergies and hedges that could enhance the overall stability of the portfolio.

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. 

Media Contacts

   For   Riverstone Credit Opportunities Income   Plc: 

Kylie Richards

[phone]

   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.

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April 23, 2021 02:00 ET (06:00 GMT)