New Sustainability-Linked Renewable Gas Financing
4 January 2023
Riverstone Credit Opportunities Income Plc
New Sustainability-Linked Renewable Natural Gas Financing
Riverstone Credit Opportunities Income ("RCOI"), the LSE-listed energy infrastructure and energy-transition credit investor, is pleased to announce that Riverstone Credit, the Company's investment manager has executed a new four-year $150 million sustainability-linked first lien term loan (the "Term Loan") to Clean Energy Fuels Corp. ("Clean Energy Fuels" or "CLNE"). At close on 22 December 2022, RCOI committed $13.9 million. With this investment, RCOI remains nearly fully invested, with the revolving credit facility utilized and the portfolio almost exclusively comprised of green loans and sustainability-linked loans.
This financing provides Clean Energy Fuels, a NASDAQ listed public company under the ticker CLNE, with additional growth capital to execute its renewable natural gas ("RNG") growth strategy as demand for RNG fuel rapidly rises. CLNE's growth strategy includes the development of negative carbon intensity RNG projects and construction of new RNG fueling stations for the North American transportation sector. Proceeds from the term loan will be used, in part, to help fund CLNE's rapid expansion of RNG projects at dairies, which capture fugitive methane and turn it into a fuel made entirely from organic waste and reduces carbon emissions by an average of 300% versus diesel. Demand for the green fuel continues to grow as customers like Republic Services, WM, UPS, LA Metro and New York City MTA continue to expand their RNG fleets.
The first lien floating rate term loan has a maturity of 22 December 2026 with an all-in yield to maturity of c.12 percent for RCOI on a fully drawn basis. CLNE obtained a second party opinion from Sustainable Fitch that considered the transaction to be aligned with the five pillars of the Loan Syndications and Trading Association's Sustainability-Linked Loan Principles.
Danny Flannery, Managing Director of Riverstone Credit, the Company's Investment Manager said:
"Clean Energy Fuels pioneered RNG as a vehicle fuel and continues to be the largest provider of RNG for the transportation industry throughout North America. We are thrilled to partner with them on their quest to deliver fully zero-carbon RNG by 2025. RCOI is now nearly fully deployed in an attractive and diversified portfolio of independently accredited green and sustainability-linked loans that support the Company's target annual dividend yield of 8%, paid through quarterly distributions."
For Riverstone Credit Opportunities Income Plc:
Adam Weiss +1 212 271 2953
J.P. Morgan Cazenove (Corporate Broker):
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Jérémie Birnbaum (Corporate Finance) +44 0 (207) 742 4000 |
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James Bouverat / Liam MacDonald-Raggett (Sales) |
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Media Contacts:
Buchanan |
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Helen TarbetHenry WilsonJon KrinksVerity Parker |
Tel: +44 (0) 20 7466 5109Tel: +44 (0) 20 7466 5111Tel: +44 (0) 20 7466 5199Tel: +44 (0) 20 7466 5197Email: 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/ .
About Clean Energy
Clean Energy Fuels Corp. is America's largest provider of the cleanest fuel for the transportation market. The Company's mission is to decarbonize transportation through the development and delivery of renewable natural gas ("RNG"), a sustainable fuel derived from organic waste. Clean Energy allows thousands of vehicles, from airport shuttles to city buses to waste and heavy-duty trucks, to reduce their amount of climate-harming greenhouse gas. It operates a vast network of fueling stations across the U.S. and Canada. Visit www.cleanenergyfuels.com and follow @ce_renewables on Twitter.
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