Riverstone Credit Partners, the credit unit of the eponymous energy-focused private equity firm, has provided a $160 million sustainability-linked senior secured term loan to packaging and fleet management business Hoover CS. The transaction has been structured “in accordance with the LSTA Sustainability-Linked Loan (SLL) Principles,” a spokesperson told New Private Markets.
It has linked certain KPIs and sustainability performance targets to “material coupon variations” and has committed to reporting on these accordingly. “The KPIs cover the most significant environmental risks from the company’s business activities: water use, material waste and carbon emissions,” the spokesperson said, adding that a third party will verify the performance. This is not Riverstones’ first SLL.
- Further reading: Private debt managers’ embrace of ESG-linked loans