Harland & Wolff shipyards sold to Navantia UK for £69.9m

LONDON - Riverstone (LON:RSER) Credit Opportunities Income (LSE:RCOI) has announced the successful sale of the Harland & Wolff Group, a historic shipbuilding and offshore construction company, to Navantia UK. The transaction includes all four of Harland & Wolff's operating yards located in Belfast, Appledore, Methil, and Arnish.

After an extensive marketing process led by Rothschild & Co, the business and assets were sold through a pre-pack administration for a cash consideration of £69.9 million. Additionally, Navantia UK agreed to waive £20 million of debt. The deal, which was initially agreed upon with exclusivity in October 2024, secures over 1,000 jobs.

The sale's net proceeds, following administrative and deal-related expenses, are expected to reach approximately £70 million for Riverstone Credit Partners (RCP) and affiliated funds, including RCOI. An initial distribution of around £44 million is anticipated shortly, with estimated future distributions totaling approximately £26 million over the coming months.

In conjunction with the sale of the shipyards, Rothschild & Co has also sought interest in Harland & Wolff's Islandmagee Gas Storage project, which is expected to significantly increase the UK's gas storage capacity by about 33% once operational. RCP, as the equitable owner of the project due to the shortfall on amounts owed, is evaluating the best strategy to maximize the asset's value.

Considering the proceeds from the Harland & Wolff sale and the latest valuation of the Islandmagee project, RCOI has reported a modest reduction of about 4% on the independent valuation of its investment as of September 30, 2024. The company plans to provide shareholders with updates on distributions and other significant developments in the weeks to come.

The transaction involved the assistance of independent advisors, including Teneo for restructuring advisory and government relations, Bracewell LLP, and Stephenson Harwood LLP.

This sale marks a strategic shift for RCOI, which specializes in lending to companies involved in energy infrastructure and transition, including efforts to decarbonize energy, industrial, and agricultural sectors.

The information in this article is based on a press release statement from Riverstone Credit Opportunities Income.

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