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Riverstone Credit Opportunities Income (RCOI) announced its quarterly portfolio summary and unaudited fair market valuations as of 31 December 2021, reporting an unaudited net asset value per Ordinary Share of $1.02. As of that date, the unrealised portfolio had $94.8 million in committed capital and $85.4 million invested, while the realised portfolio showed $86.8 million committed and $74.5 million invested, yielding $85.0 million in gross realised capital. In Q4 2021, RCOI fully realised Aspen Power Partners in October 2021 with a 1.27x MOIC and provided a new sustainability-linked loan to Streamline Innovations in November 2021.
| Date | 21 Jan 2022 |
| Time | 07:00:16 |
| Category | Corporate updates |
| ID | 1603Z |
Riverstone Credit Opportunities Income Announces 4Q21 Quarterly Portfolio Valuations & Recent Activity
London, UK (21 January 2022) - Riverstone Credit Opportunities Income ("RCOI") announces its quarterly portfolio summary as of 31 December 2021, inclusive of updated quarterly unaudited fair market valuations:
As of 31 December 2021, the unaudited net asset value per Ordinary Share, including net revenue for the quarter ended 31 December, was $1.02.
Cumulative Portfolio Summary
Unrealised Portfolio[1]
|
Investment Name |
Subsector |
Commitment Date |
Cumulative Committed Capital ($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 Dec 20212 |
Gross MOIC |
|
Project Mariners |
Infrastructure Services |
Jul-19 |
13.2 |
13.2 |
7.1 |
10.6 |
17.7 |
110.00% |
1.31 x |
|
Caliber Midstream3 |
Midstream |
Aug-19 |
3.9 |
3.9 |
0.4 |
0.3 |
0.7 |
6.77% |
0.17 x |
|
Epic Propane Pipeline |
Midstream |
Dec-19 |
14.8 |
14.8 |
2.7 |
15.4 |
18.1 |
101.60% |
1.22 x |
|
FS Crude |
Midstream |
Mar-20 |
13.7 |
13.7 |
9.4 |
6.8 |
16.2 |
100.27% |
1.18 x |
|
Hoover Circular Solutions |
Infrastructure Services |
Oct-20 |
7.4 |
7.4 |
4.2 |
4.0 |
8.2 |
100.61% |
1.11 x |
|
Roaring Fork Midstream |
Midstream |
Mar-21 |
5.9 |
4.2 |
0.4 |
4.3 |
4.7 |
99.88% |
1.13 x |
|
Imperium3NY LLC |
Energy Transition |
Apr-21 |
6.8 |
5.4 |
1.5 |
5.8 |
7.3 |
128.74% |
1.35 x |
|
Blackbuck Resources LLC |
Infrastructure Services |
Jun-21 |
9.9 |
8.9 |
1.1 |
8.4 |
9.5 |
99.27% |
1.07 x |
|
Circulus Holdings, PBLLC |
Infrastructure Services |
Aug-21 |
12.3 |
12.3 |
3.6 |
9.2 |
12.7 |
97.79% |
1.04 x |
|
Streamline Innovations Inc. |
Energy Transition |
Nov-21 |
6.9 |
1.7 |
0.1 |
1.7 |
1.8 |
98.72% |
1.08 x |
|
|
|
|
$94.8 |
$85.4 |
$30.4 |
$66.5 |
$96.9 |
|
1.13 x |
Realised Portfolio
|
Investment Name |
Subsector |
Commitment Date |
Realisation Date |
Cumulative Committed Capital ($mm) |
Cumulative Invested Capital ($mm) |
Gross Realised Capital ($mm)1 |
Gross MOIC |
|
Rocky Creek Resources |
Exploration & Production |
Jun-19 |
Dec-19 |
6.0 |
4.3 |
4.9 |
1.15 x |
|
CIG Logistics |
Infrastructure Services |
Jan-20 |
Jan-20 |
8.7 |
8.7 |
8.9 |
1.02 x |
|
Mallard Exploration |
Exploration & Production |
Nov-19 |
Apr-20 |
13.8 |
6.8 |
7.7 |
1.13 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 |
|
Ascent Energy |
Exploration & Production |
Jun-19 |
Jun-21 |
13.3 |
13.3 |
16.1 |
1.21 x |
|
Pursuit Oil & Gas |
Exploration & Production |
Jul-19 |
Jun-21 |
12.3 |
12.3 |
15.0 |
1.22 x |
|
U.S. Shipping |
Midstream |
Feb-21 |
Aug-21 |
6.5 |
6.5 |
7.3 |
1.13 x |
|
Aspen Power Partners |
Energy Transition |
Dec-20 |
Oct-21 |
6.9 |
3.4 |
4.3 |
1.27 x |
|
|
|
|
|
$86.8 |
$74.5 |
$85.0 |
1.14 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 December 2021 |
|
|
Weighted Avg. Entry Basis |
96.8% |
|
Weighted Avg. All-in Coupon at Entry |
9.32 p.a. |
|
Weighted Avg. Undrawn Spread at Entry |
4.4% p.a. |
|
Weighted Avg. Tenor at Entry |
3.2 years |
|
Weighted Avg. Call Premium at Entry |
108.7 |
|
Security |
100% Secured |
Manager Outlook
§ Despite the recent concerns regarding the omicron variant, energy markets remained resilient throughout the end of 2021 with commodity prices remaining near the highs seen in Q3 2021. In addition, the Investment Manager's on-going shift to energy infrastructure & infrastructure services and energy transition assets, continues to further diversify and insulate the portfolio from commodity price or other macro volatility. Continued optimism remains across the RCOI portfolio, as the aggregate unrealized portfolio valuations were up QoQ in Q4 2021.
§ Imperium3, a $6.8 million RCOI commitment in April 2021 to a lithium-ion battery manufacturer, saw the largest increase in value in Q4 2021. This was due to a material increase in the value of equity raised in the second half of 2021 versus the value ascribed at closing.
§ Based on the current unfunded commitments, expected new deal activity and potential upsizes of existing investments, the Investment Manager believes that RCOI will be close to fully committed and materially invested by the end of Q1 2022.
§ In addition to providing support to the current portfolio companies, the Investment Manager expects to have ample opportunities throughout 2022 to deploy capital to target infrastructure, infrastructure services and energy transition investment. The portfolio is expected to continue to provide steady income and offer attractive returns for our shareholders.
Reuben Jeffery III, Chairman of RCOI, commented:
"Set against an encouraging energy market backdrop and strong fundamentals into the beginning of 2022, we remain very pleased with the performance of the RCOI vehicle. The Company currently has a net asset value per share of $1.02 and has returned over 20 cents per share to investors since the IPO."
Christopher Abbate and Jamie Brodsky, Co-Founders of Riverstone Credit, added:
"Q4 2021 was the second quarter without any upstream exposure in the RCOI portfolio or any expected in the foreseeable future. We do believe there remains a very attractive pipeline of investment opportunities within the energy infrastructure & infrastructure services and energy transition sectors. In Q4 2021, RCOI was able to fully realise one investment and execute one new sustainability-linked loan. The realisation of Aspen Power Partners, a first-lien green loan to a community solar developer, occurred in October 2021, resulting in a 36.0% IRR and 1.27x MOIC. In addition, in November 2021, RCOI provided a first lien term sustainability-linked loan to Streamline Innovations, a sponsor-backed leader in environmentally advanced treatment solutions and equipment for hydrogen sulfide (H2S) in energy, renewable fuels, wastewater, landfill gas, biogas, and industrial processes. We remain very optimistic about the opportunity set available for our target sector and remain focused on steady capital deployment and consistency of yield."
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 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.
For Riverstone Credit Opportunities Income Plc:
Adam Weiss
+1 212 271 2953