Riverstone Credit Opportunities Income has announced a successful amendment and extension of its investment in Streamline Innovations, a leader in environmentally-advanced treatment solutions for the removal of hydrogen sulfide (H2S) from energy, renewable fuels, wastewater, and industrial processes.
The company realised about $2.0m of profits at closing of the amendment and extension resulting in a 24% gross IRR (19% net IRR) and a 1.3x gross MOIC (1.2x net MOIC) of the initial investment in Streamline Innovations. With this upsize, Riverstone Credit remains nearly fully invested, with the portfolio comprising almost exclusively green loans and sustainability-linked loans.
In November 2021, Riverstone Credit participated in a $20.0m first lien delayed-draw term loan, of which $6.9m was committed by Riverstone Credit. In May 2022, Riverstone Credit participated in a $25.0m upsize for a $45.0m first lien delayed-draw term loan, bringing RCOI’s total commitment to $13.8m. The facility was structured as a green loan with Sustainable Fitch providing a second party opinion. The second party opinion verifies the facility’s alignment to the LSTA Green Loan Principles with the transaction being compliant with the four pillars of the LSTA Green Loan Principles and aligned with the LSTA category of pollution and prevention.
As part of this amendment and extension closing, the facility was upsized to $55.0 million, the maturity was extended to December 2026, and economic terms were adjusted for an estimated all-in yield to maturity of 13% to Riverstone Credit. Additionally, as part of the amendment, Riverstone Credit’s allocation to the loan was reduced from $13.8m to $9.9m as the result of the investment manger’s allocation policy which aims to allocate each deal based on the available capital in each fund being invested.
RCOI : Riverstone Credit benefits from Streamline Innovations refi