Edison issues update on Riverstone Credit Opportunities Income (RCOI): Continues to deliver an 8–10% dividend yield

London, UK, 30 January 2024

Edison issues update on Riverstone Credit Opportunities Income (RCOI): Continues to deliver an 8–10% dividend yield

Riverstone Credit Opportunities Income (RCOI) reported an FY23 NAV total return (TR) of 6.0%, with continued steady income from its fully invested portfolio, though with some headwinds from the valuation of warrants. RCOI paid three quarterly dividends of 2.0 US cents per share for 9M23, and is therefore on track to deliver at least the lower bound of its targeted dividend yield of 8–10% on its IPO price of US$1.00. At the current 18.2% discount to NAV, RCOI’s last 12-month dividend translates into an annualised dividend yield of c 10%.

RCOI highlighted that, based on existing portfolio commitments, the company was nearly fully invested as at end-September 2023. In December, RCOI announced the successful realisation of the Clean Energy Fuels loan, achieving a 14.9% gross internal rate of return (IRR) and a 1.14x gross multiple on invested capital (MOIC). A successful redeployment of the proceeds would facilitate RCOI’s sustained income generation potential. We also note that in December 2023, RCOI announced the amendment and extension of the Blackbuck loan, with its economic terms adjusted for an all-in yield to maturity (YTM) of 17%. RCOI’s total portfolio was held at a 1.22x MOIC at end-December 2023, slightly above the 1.18x MOIC on its realised investments since inception.

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