2 August
2024
Riverstone Credit Opportunities Income Plc
Harland
& Wolff Update
Riverstone Credit Opportunities
Income ("RCOI" or the "Company"), the LSE-listed energy
infrastructure and energy-transition credit investor, notes the
announcement published 1 August 2024 by Harland & Wolff Group
Holdings Plc ("Harland & Wolff"), the UK quoted company focused
on strategic infrastructure projects and physical asset lifecycle
management.
The Company and other funds managed
by RCOI's investment manager, Riverstone Investment Group LLC,
(together with its affiliates "Riverstone") are co-invested in a
$115 million loan (the "Existing Facility") to Harland &Wolff,
of which RCOI's contribution is $14.6 million.
In August 2024, credit funds managed
by Riverstone provided a $25 million capital investment in a super
priority position (the "Super Priority Facility") to the existing
facility of which the Company is a lender bringing the total
commitments to $140 million. As a condition precedent to injecting
the new capital, the $15 million upsize of the facility completed
in February 2024 (in which RCOI did not participate), was
recharacterised as part of the new Super Priority Facility. The
Super Priority Facility accrues interest at SOFR plus 900 bps (100%
paid-in-kind), which is the same interest rate as the Existing
Facility, and is subject to a 25% repayment premium. In addition,
the Existing Facility repayment premium was amended to
30%.
The new financing is part of a
larger effort to stabilise the liquidity of Harland & Wolff and
help facilitate a long-term capital solution. Furthermore, as
announced by Harland & Wolff, it has formally engaged
Rothschild & Co as financial adviser to assess strategic
options and instituted changes to senior management and the board
of directors.
As previously noted, RCOI did not
participate in the Super Priority Facility as it has now entered
into managed wind-down (and had previously already reached its
concentration limit in H&W).
The Board is
working to expedite the return of cash as soon as practicable given
the ongoing uncertainty. In the meantime, the
Company's cash balances are invested in a money market and are
yielding a healthy risk-free return.
The Board is evaluating the
appropriate level of dividend to pay for the second quarter and
will provide further information in due course.
For Riverstone Credit
Opportunities Income Plc:
Adam
Weiss
+1 212 271 2953
Media Contacts:
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Buchanan
|
|
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Helen Tarbet
Henry Wilson
Verity Parker
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Tel: +44 (0) 20 7466 5109
Tel: +44 (0) 20 7466 5111
Tel: +44 (0) 20 7466 5197
Email: 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
also lends to 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.
As previously announced, on January
2, Riverstone Holdings LLC, and their affiliate Riverstone
Investment Group (collectively, "Riverstone") entered into a sub
management agreement for RCOI with Breakwall Capital LP.
Breakwall is an independent asset manager regulated by the SEC as a
Registered Investment Advisor. It is owned and operated by the
former members of the Riverstone Credit Partners team.
For further details, see
https://www.riverstonecoi.com/.
Neither the contents of RCOI's
website nor the contents of any website accessible from hyperlinks
on the websites (or any other website) is incorporated into, or
forms part of, this announcement.
