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Riverstone Credit updates on deals

Riverstone Credit updates on deals – Riverstone Credit Opportunities Income has originated one new investment and realised some or all of a number of existing investments.

New Deal Activity

§ Project Mirror – RCOI participated in a $20.0 million first lien delayed-draw term loan to a community solar development company. Led by operating partners of a private equity sponsor, the company acquires, constructs and manages community solar portfolios across the United States for eventual sale to third parties. At closing 28 December 2020, $6.9m was committed by RCOI, of which $3.4m is currently invested. The first lien term loan has a maturity of December 2021 and an expected all-in yield to maturity of 13.3% on a fully-drawn basis. They say that this deal marks the first in a rapidly growing pipeline of de-carbonisation investments, which reflects the changing nature of the energy market.

Realisations

§ Project Boulder II partial realisation – RCOI originally participated in a recapitalisation of a sponsor-backed company that is the leading specialty rental provider of containers and mobile asset management solutions across the energy, industrial, refining, and petrochemical industries. At closing on 1 October 2020, $7.4m was committed. Following the sale of the borrower’s offshore business, 43% of the outstanding principal was repaid on 3 December 2020, with the residual investment remaining in a first lien senior-secured position with sub 3x leverage.

§ Project Alp partial realisation – RCOI originally participated in a $55m first lien term loan for a sponsor-backed exploration & production company that is focused on development in the Northern Delaware with acreage in Lea and Eddy counties. At closing on 18 June 2019, $13.3m was committed by RCOI. On 23 December 2020, RCP sold $20m of the first lien term loan to an affiliate of the borrower at a price of 100.5. This sale settled in early January 2021, and RCOI’s remaining commitment is $8.2m.

§ Project Sierra partial realisation – RCOI originally participated in a $75m first lien delayed-draw term loan for a sponsor-backed midstream company that provides crude gathering, storage and blending services to a diversified footprint of producers in the core of the Delaware Basin. At closing on 6 March 2020, $13.7m was committed. The borrower paid down $40m of principal as well as interest and fees on 28 December 2020. The remaining $35m remains in a first lien senior-secured position, of which RCOI’s commitment is $6.4m.

§ Secondary realisation – RCOI opportunistically purchased two loans in the secondary market during Q3 2020, most of which settled in Q4 2020. As new private investment opportunities arose, such as Project Boulder II and Project Mirror, it fully exited these loans during Q4 2020. In total, RCOI invested $13m and realised $13.5m, which, with interest payments, represented a 10.5 per cent. IRR and 1.01x MOIC.

§ In addition, Project Chase drew down $9m at end of December 2020 and is now fully funded. At closing 3 July 2019, RCOI committed $12.3m.

Taking all of this into account, the company is 78% committed and 74% invested. It has $20.7m of capital available for investments.

RCOI : Riverstone Credit updates on deals

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