Riverstone Credit Opps. Inc PLC New Water Infrastructure Services Investment (6325B)
October 04 2022 - 1:00AM
UK Regulatory
TIDMRCOI
RNS Number : 6325B
Riverstone Credit Opps. Inc PLC
04 October 2022
4 October 2022
Riverstone Credit Opportunities Income Plc
New Water Infrastructure Services Investment
Attractive Yield with Significant Long-term Upside Potential
Riverstone Credit Opportunities Income ("RCOI" or the
"Company"), the LSE-listed energy infrastructure and
energy-transition credit investor, is pleased to announce a
secondary investment in a stapled bundle of private securities in
Seawolf Water Resources ("Seawolf") that includes a first lien term
loan along with preferred stock and common equity, collectively at
a significant discount to market value .
The investment by RCOI was completed on 26 September 2022. The
term loan has a maturity of March 31, 2026 and an estimated all-in
yield to maturity on the loan of 10.6 percent to RCOI. The
preferred stock and common equity are perpetual in nature but
benefit from excess cash returned to the shareholders from time to
time. Across the term loan, preferred stock and common equity, RCOI
has committed a total of $9.0 million. With this investment, the
RCOI portfolio is nearly 90% committed.
Background
In September 2018, Riverstone Credit led the syndication of a
$300.0 million first lien term loan to a water infrastructure
services company with operations primarily in Loving County, TX and
southern New Mexico. In March 2021, this loan was restructured into
a smaller first lien loan, preferred stock and common equity with
the former lenders now controlling the company. Recently one of the
non-Riverstone Credit syndicate members sought a buyer for their
position and Riverstone Credit came to terms to purchase it at an
attractive price. In addition, the borrower has agreed to amend the
loan to be a sustainability linked loan with a sustainability
performance target to be finalized in the near future. Despite the
stress experienced during the COVID-19 pandemic, Seawolf today is
experiencing some of its best operating and financial results of
the past four years.
Christopher Abbate, Co-Head of Riverstone Credit, the Company's
Investment Manager said:
"We are pleased to announce this attractive investment
opportunity in the water infrastructure services sector with a
counterparty that the Company has followed closely for many years.
We therefore view the current opportunity to participate in a term
loan, preferred stock and common equity investment at a significant
discount to market value as an extremely compelling proposition for
our shareholders with considerable upside potential."
For Riverstone Credit Opportunities Income Plc:
Adam Weiss +1 212 271 2953
Media Contacts:
Buchanan
Helen Tarbet Henry Tel: +44 (0) 20 7466 5109 Tel: +44
Wilson Jon Krinks Verity (0) 20 7466 5111 Tel: +44 (0) 20
Parker 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.
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