New Water Infrastructure Services Investment
4 October 2022
Riverstone Credit Opportunities Income Plc
New Water Infrastructure Services Investment
Attractive Yield with Significant Long-term Upside Potential
Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the LSE-listed energy infrastructure and energy-transition credit investor, is pleased to announce a secondary investment in a stapled bundle of private securities in Seawolf Water Resources ("Seawolf") that includes a first lien term loan along with preferred stock and common equity, collectively at a significant discount to market value .
The investment by RCOI was completed on 26 September 2022. The term loan has a maturity of March 31, 2026 and an estimated all-in yield to maturity on the loan of 10.6 percent to RCOI. The preferred stock and common equity are perpetual in nature but benefit from excess cash returned to the shareholders from time to time. Across the term loan, preferred stock and common equity, RCOI has committed a total of $9.0 million. With this investment, the RCOI portfolio is nearly 90% committed.
Background
In September 2018, Riverstone Credit led the syndication of a $300.0 million first lien term loan to a water infrastructure services company with operations primarily in Loving County, TX and southern New Mexico. In March 2021, this loan was restructured into a smaller first lien loan, preferred stock and common equity with the former lenders now controlling the company. Recently one of the non-Riverstone Credit syndicate members sought a buyer for their position and Riverstone Credit came to terms to purchase it at an attractive price. In addition, the borrower has agreed to amend the loan to be a sustainability linked loan with a sustainability performance target to be finalized in the near future. Despite the stress experienced during the COVID-19 pandemic, Seawolf today is experiencing some of its best operating and financial results of the past four years.
Christopher Abbate, Co-Head of Riverstone Credit, the Company's Investment Manager said:
"We are pleased to announce this attractive investment opportunity in the water infrastructure services sector with a counterparty that the Company has followed closely for many years. We therefore view the current opportunity to participate in a term loan, preferred stock and common equity investment at a significant discount to market value as an extremely compelling proposition for our shareholders with considerable upside potential."
For Riverstone Credit Opportunities Income Plc:
Adam Weiss +1 212 271 2953
Media Contacts:
Buchanan |
|
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/ .
Neither the contents of RCOI's website nor the contents of anywebsite accessible fromhyperlinkson the websites(oranyotherwebsite) is incorporated into, or forms partof, this announcement.
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