Riverstone Credit Opportunities Income has been repaid the loan that it made to Hoover CS and has reinvested the proceeds and more into a new sustainability-linked first lien term loan for Hoover CS. Riverstone Credit is now nearly fully invested, with the portfolio almost exclusively green loans and sustainability-linked loans.
Hoover CS is a leading provider of sustainable packaging and fleet management solutions. It is helping customers across the chemical, refining and general industrial-end markets to move away from single-use containers. Through its large rental fleet of reusable liquid and dry intermediate bulk containers and ISO tanks, integrity management, and fleet management services, Hoover CS’s sustainable packaging solutions facilitate circularity across the supply chain, reducing plastic, water conservation, and lower greenhouse gas emissions.
In October 2020, Riverstone Credit committed $7.4m to $225m first lien term loan as part of a comprehensive recapitalisation of Hoover CS’s business also involving a $35m second lien term loan and over $90m of additional private equity investment. The amount outstanding to Riverstone Credit was reduced through repayments totalling $3.6m throughout 2021 and 2022 bringing its commitment down to $3.8m, but on 1 September 2022, it was able to opportunistically purchase $8.0m of the first lien term loan bringing the outstanding commitment up to $11.7m. On 30 November 2022, all of the outstanding debt was refinanced by a new $160m sustainability-linked, first lien term loan due November 2026. As part of the new deal allocations, Riverstone Credit’s commitment was incresaed to $13.7m. The expected returns are in line with those of the initial investment.
RCOI : Riverstone Credit transition to green/sustainable loans complete