Riverstone Credit Partners, the credit unit of the eponymous energy-focused private equity firm, has expanded a sustainability-linked term loan to portfolio company Blackbuck Resources. The facility was originally put in place, along with ESG KPIs, in 2021. The borrower provides water infrastructure and services for the oil and gas industry and operates in the Midland and Delaware Basins in the US state of Texas.
“The facility’s pricing will be adjusted based upon Blackbuck’s adherence to certain sustainability performance targets, which are defined by key performance indicators set internally by Blackbuck,” the firm said. “Blackbuck obtained a second party opinion from Sustainable Fitch that considered the transaction to be aligned with the five pillars of the LSTA Sustainability-Linked Loan Principles.”
The press release does not detail the areas covered by the KPIs, nor does it disclose the range by which the interest rate can move. Riverstone declined to comment further.
It is not Riverstone’s first foray into sustainability-linked loans: in March it closed a term loan for UK-based maritime engineering company Harland & Wolff. The sustainability-linked element incentivises the borrower to “upscale its group-wide apprenticeship programme aimed at the local communities in which Harland & Wolff operates”, a statement said.
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