Energy-focused Riverstone Credit Opportunities Income reports early results – Riverstone Credit Opportunities Income (RCOI) is one of the newest companies in the listed investment sector (click here to read more about the company); the company has this morning reported half-year results to end-June 2019, though the actual period covered is from 28 May 2019 onwards
Of the $100m of cash raised in the IPO, in the 34 days to period end, $6m has been invested with a total of $25.2m committed to investments. RCOI finished the period with a cash balance of $93.2m (including cash held at the SPVs) and no debt. The NAV and income figures released are shown below:
- NAV: $98.48m;
- NAV per share: $0.985;
- Market capitalisation: $100m;
- Total comprehensive income for the period: $0.48m.
Financing vacuum opportunity
RCOI says that the investment opportunity remains robust with several actionable investments in various stages of review and negotiation. The company expects to be substantially committed by year-end. RCOI’s manager believes that the lack of financing available to energy companies in the public markets has created a wide investment universe for RCOI to go after.
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.”
RCOI seeks to generate 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 sub-sectors 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.
RCOI: Energy-focused Riverstone Credit Opportunities Income reports early results
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