Portman Ridge Finance Corporation Announces First Quarter 2022 Financial Results

Properly Positioned to Additional Enhance Portfolio Efficiency and Enhance Funding Earnings in 2022;
Refinances JPMorgan Chase Financial institution (“JPM”) Credit score Facility and Reduces Price of Capital

Declares Quarterly Distribution of $0.63 Per Share

NEW YORK, Might 10, 2022 (GLOBE NEWSWIRE) — Portman Ridge Finance Company (Nasdaq: PTMN) (the “Firm” or “Portman Ridge”) introduced at the moment its monetary outcomes for the primary quarter ended March 31, 2022.

First Quarter 2022 Highlights

• Internet asset worth (“NAV”) for the primary quarter of 2022 remained comparatively flat at $278.3 million ($28.76 per share¹) as in comparison with $280.1 million ($28.88 per share) within the fourth quarter of 2021, regardless of pervasive market volatility and different macro-economic and political elements.

• Complete funding earnings the primary quarter of 2022 was $16.9 million, of which $13.0 million was attributable to curiosity earnings from the debt securities portfolio.

• Excluding the impression of buy value accounting, core funding earnings² for the primary quarter of 2022 was $15.1 million.

• Internet funding earnings (“NII”) for the primary quarter of 2022 was $7.9 million ($0.82 per share).

• Complete investments at honest worth as of March 31, 2022 was $568.0 million; when excluding CLO Funds, Joint Ventures and short-term investments, these investments are unfold throughout 30 completely different industries and 116 entities with a mean par stability per entity of roughly $3.3 million.

• As of March 31, 2022, six of the Firm’s debt investments have been on non-accrual standing in comparison with seven as of December 31, 2021.

• As of March 31, 2022, par worth of excellent borrowings was $352.4 million with an asset protection ratio of complete belongings to complete borrowings of 180%. On a web foundation, leverage as of March 31, 2022 was 0.97x.³

• In the course of the quarter, the Firm restructured its inventory buybacks and repurchased 22,990 of shares beneath its Renewed Inventory Repurchase program at an combination price of roughly $545 thousand.

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¹ NAV per share as decided in accordance with U.S. usually accepted accounting ideas, or U.S. GAAP, was decreased 5 cents per share because of the impression of a one-time quarterly tax provision.
² Core funding earnings represents reported complete funding earnings as decided in accordance with U.S. usually accepted accounting ideas, or U.S. GAAP, much less the impression of buy value low cost accounting in reference to the Garrison Capital Inc. (“GARS”) and Harvest Capital Credit score Company (“HCAP”) mergers. Portman Ridge believes presenting core funding earnings and the associated per share quantity is beneficial and applicable supplemental disclosure for analyzing its monetary efficiency because of the distinctive circumstance giving rise to the acquisition accounting adjustment. Nonetheless, core funding earnings is a non-U.S. GAAP measure and shouldn’t be thought-about as a alternative for complete funding earnings and different earnings measures offered in accordance with U.S. GAAP. As an alternative, core funding earnings must be reviewed solely in reference to such U.S. GAAP measures in analyzing Portman Ridge’s monetary efficiency.
³ Internet leverage is calculated because the ratio between (A) debt, excluding unamortized debt issuance prices, much less obtainable money and money equivalents, and restricted money and (B) NAV. Portman Ridge believes presenting a web leverage ratio is beneficial and applicable supplemental disclosure as a result of it displays the Firm’s monetary situation web of $83.6 million of money and money equivalents. Nonetheless, the online leverage ratio is a non-U.S. GAAP measure and shouldn’t be thought-about as a alternative for the regulatory asset protection ratio and different comparable data offered in accordance with U.S. GAAP. As an alternative, the online leverage ratio must be reviewed solely in reference to such U.S. GAAP measures in analyzing Portman Ridge’s monetary situation.

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Subsequent Occasions

• Declared a stockholder distribution of $0.63 per share for the second quarter of 2022, payable on June 7, 2022 to stockholders of document on the shut of enterprise on Might 24, 2022.

• On April 29, 2022, the Firm refinanced its Revolving Credit score Facility with JPMorgan Chase Financial institution as administrative agent. The amended settlement locations three-month SOFR because the benchmark rate of interest and reduces the relevant margin to 2.80% every year from 2.85% every year. Different amendments embody the extension of the reinvestment interval and scheduled termination date to April 29, 2025 and April 29, 2026, respectively.

Administration Commentary
Ted Goldthorpe, Chief Govt Officer of Portman Ridge, acknowledged, “Regardless of working in an atmosphere with rising rates of interest, market volatility, and the battle within the Ukraine, we reported a comparatively unchanged NAV per share for the primary quarter, diminished our non-accruals, and maintained our dividend of $0.63 per share. Whereas lots of our friends have seen raised rates of interest on their strains of credit score and excellent debt, now we have been capable of restructure our settlement with JPMorgan Chase and decrease the rate of interest, shift from LIBOR to SOFR, and prolong the maturity date by 2 ½ years. Though funding exercise and originations have been decrease within the first quarter of 2022 as in comparison with the second half of 2021, a sector-wide development, subsequent to quarter finish now we have deployed roughly $35 million of our obtainable money in new investments and have a pipeline of an extra $20 million to $30 million we count on to deploy earlier than the top of the second quarter. We’re additionally happy to announce that now we have added two new seasoned members to our board. General, we imagine that we’re well-positioned to additional enhance our portfolio efficiency and improve funding earnings in 2022.”

Choose Monetary Highlights

⁴ The Firm accomplished a Reverse Inventory Break up of 10 to 1 efficient August 26, 2021. Because of this, the share and per share quantities have been adjusted retroactively to replicate the break up for all durations previous to August 26, 2021.

Complete funding earnings for the three months ended March 31, 2022 and March 31, 2021 was $16.9 million and $18.3 million, respectively. Complete bills for the three months ended March 31, 2022 and March 31, 2021 have been $9.0 million and $10.1 million, respectively.

At each March 31, 2022 and December 31, 2021, the weighted common contractual rate of interest on our curiosity incomes debt securities portfolio was roughly 8.1%.

Funding Portfolio Exercise
The composition of our funding portfolio as of March 31, 2022 and December 31, 2021 at price and honest worth was as follows:

⁵Represents share of complete portfolio at honest worth.
⁶Represents the fairness funding within the Asset Supervisor Associates.

As of March 31, 2022, six of the Firm’s debt investments have been on non-accrual standing in comparison with seven investments on a non-accrual standing as of December 31, 2021. Investments on non-accrual standing as of March 31, 2022 decreased to 0.2% and 1.9% of the Firm’s funding portfolio at honest worth and amortized price, respectively, in comparison with 0.5% and a couple of.8% as of December 31, 2021.

Liquidity and Capital Assets
As of March 31, 2022, we had $352.4 million (par worth) of borrowings excellent with a weighted common rate of interest of three.2%, of which $108.0 million par worth had a set price and $244.4 million par worth had a floating price. Portman Ridge expects future portfolio investments to predominately be floating price investments.

As of March 31, 2022, the Firm had unrestricted money of $20.5 million and restricted money of $63.1 million. This compares to unrestricted money of $28.9 million and restricted money of $39.4 million as of December 31, 2021. As of March 31, 2022, we had $34.4 million of accessible borrowing capability beneath the Senior Secured Revolving Credit score Facility, and $25.0 million of borrowing capability beneath the 2018-2 Revolving Credit score Facility.

Complete belongings and shareholder’s fairness as of March 31, 2022 have been $660.9 million and $278.3 million respectively, as in comparison with $648.3 million and $280.1 million, respectively as of December 31, 2021.

As of March 31, 2022 and December 31, 2021, the honest worth of investments and money have been as follows:

Curiosity Fee Volatility
The Firm’s funding earnings is affected by fluctuations in numerous rates of interest, together with LIBOR and prime charges.

As of March 31, 2022, roughly 87% of the Firm’s debt securities portfolio have been both floating price with a selection to an rate of interest index comparable to LIBOR or the prime price. 76.6% of those floating price loans include LIBOR flooring ranging between 0.50% and a couple of.00%.

In durations of rising or reducing rates of interest, the price of the portion of debt related to the 4.875% Notes Due 2026 would stay the identical, on condition that this debt is at a set price, whereas the rate of interest on borrowings beneath the Revolving Credit score Facility would fluctuate with modifications in rates of interest.

Typically, a rise within the base price index for floating price funding belongings would improve gross funding earnings and a lower within the base price index for such belongings would lower gross funding earnings (in both case, such improve/lower could also be restricted by rate of interest flooring/minimums for sure funding belongings).

Internet funding earnings assuming a 1% improve in rates of interest would improve by roughly $1.5 million on an annualized foundation. If the rise in charges was extra vital, comparable to 2% or 3%, the online impact on web funding earnings could be a rise of roughly $3.2 million and $4.8 million, respectively.

On an annualized foundation, a lower in rates of interest of 1%, 2% or 3% would end in a rise in web funding earnings of roughly $746 thousand. The impact on web funding earnings from declines in rates of interest is impacted by rate of interest flooring on sure of our floating price investments, as there isn’t any ground on our floating price debt facility and the 2018-2 Secured Notes.

Convention Name and Webcast
We are going to maintain a convention name on Wednesday, Might 11, 2022 at 9:00 am Japanese Time to debate our first quarter 2022 monetary outcomes. To entry the decision, stockholders, potential stockholders and analysts ought to dial (866) 757-5630 roughly 10 minutes previous to the beginning of the convention name and use the convention ID 5981065.

A replay of this convention name will likely be obtainable from roughly 12:00 p.m. ET on Might 11 by Might 18. The dial in quantity for the replay is (855) 859-2056 and the convention ID is 5981065.

A reside audio webcast of the convention name could be accessed through the Web, on a listen-only foundation on the Firm’s web site www.portmanridge.com within the Investor Relations part beneath Occasions and Displays. The webcast may also be accessed by clicking the next hyperlink: Portman Ridge First Quarter 2022 Convention Name. The web archive of the webcast will likely be obtainable on the Firm’s web site shortly after the decision.

About Portman Ridge Finance Company
Portman Ridge Finance Company (Nasdaq: PTMN) is a publicly traded, externally managed funding firm that has elected to be regulated as a enterprise growth firm beneath the Funding Firm Act of 1940. Portman Ridge’s center market funding enterprise originates, constructions, funds and manages a portfolio of time period loans, mezzanine investments and chosen fairness securities in center market firms. Portman Ridge’s funding actions are managed by its funding adviser, Sierra Crest Funding Administration LLC, an affiliate of BC Companions Advisors, LP.

Portman Ridge’s filings with the Securities and Change Fee (the “SEC”), earnings releases, press releases and different monetary, operational and governance data can be found on the Firm’s web site at www.portmanridge.com.

About BC Companions Advisors L.P. and BC Companions Credit score
BC Companions is a number one worldwide funding agency with over $40 billion of belongings beneath administration in personal fairness, personal credit score and actual property methods. Established in 1986, BC Companions has performed an energetic position in creating the European buyout marketplace for three many years. At present, BC Companions executives function throughout markets as an built-in workforce by the agency’s places of work in North America and Europe. Since inception, BC Companions has accomplished 117 personal fairness investments in firms with a complete enterprise worth of €149 billion and is at the moment investing its eleventh personal fairness fund. For extra data, please go to www.bcpartners.com.

BC Companions Credit score was launched in February 2017 and has pursued a method targeted on figuring out enticing credit score alternatives in any market atmosphere and throughout sectors, leveraging the deal sourcing and infrastructure made obtainable from BC Companions.

Cautionary Assertion Concerning Ahead-Trying Statements
This press launch accommodates forward-looking statements. The issues mentioned on this press launch, in addition to in future oral and written statements by administration of Portman Ridge Finance Company, which are forward-looking statements are based mostly on present administration expectations that contain substantial dangers and uncertainties which might trigger precise outcomes to vary materially from the outcomes expressed in, or implied by, these forward-looking statements.

Ahead-looking statements relate to future occasions or our future monetary efficiency and embody, however usually are not restricted to, projected monetary efficiency, anticipated growth of the enterprise, plans and expectations about future investments and the longer term liquidity of the Firm. We usually establish forward-looking statements by terminology comparable to “could,” “will,” “ought to,” “expects,” “plans,” “anticipates,” “might,” “intends,” “goal,” “tasks,” “outlook”, “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “proceed” or the adverse of those phrases or different comparable phrases. Ahead-looking statements are based mostly upon present plans, estimates and expectations which are topic to dangers, uncertainties and assumptions. Ought to a number of of those dangers or uncertainties materialize, or ought to underlying assumptions show to be incorrect, precise outcomes could fluctuate materially from these indicated or anticipated by such forward-looking statements.

Necessary assumptions embody our means to originate new investments, and obtain sure margins and ranges of profitability, the supply of extra capital, and the flexibility to keep up sure debt to asset ratios. In mild of those and different uncertainties, the inclusion of a projection or forward-looking assertion on this press launch shouldn’t be thought to be a illustration that such plans, estimates, expectations or goals will likely be achieved. Necessary elements that would trigger precise outcomes to vary materially from such plans, estimates or expectations embody, amongst others, (1) uncertainty of the anticipated monetary efficiency of the Firm; (2) anticipated synergies and financial savings related to merger transactions effectuated by the Firm; (3) the flexibility of the Firm and/or its adviser to implement its enterprise technique; (4) evolving authorized, regulatory and tax regimes; (5) modifications generally financial and/or business particular circumstances; (6) the impression of elevated competitors; (7) enterprise prospects and the prospects of the Firm’s portfolio firms; (8) contractual preparations with third events; (9) any future financings by the Firm; (10) the flexibility of Sierra Crest Funding Administration LLC to draw and retain extremely gifted professionals; (11) the Firm’s means to fund any unfunded commitments; (12) any future distributions by the Firm; (13) modifications in regional or nationwide financial circumstances, together with however not restricted to the impression of the COVID-19 pandemic, and their impression on the industries through which we make investments; and (14) different modifications within the circumstances of the industries through which we make investments and different elements enumerated in our filings with the SEC. The forward-looking statements must be learn along with the dangers and uncertainties mentioned within the Firm’s filings with the SEC, together with the Firm’s most up-to-date Type 10-Ok and different SEC filings. We don’t undertake to publicly replace or revise any forward-looking statements, whether or not because of new data, future occasions or in any other case, besides as required to be reported beneath the foundations and laws of the SEC.

Contacts:
Portman Ridge Finance Company
650 Madison Avenue, twenty third ground
New York, NY 10022
information@portmanridge.com

Jason Roos
Chief Monetary Officer
Jason.Roos@bcpartners.com
(212) 891-2880

Lena Cati
The Fairness Group Inc.
lcati@equityny.com
(212) 836-9611

Serena Liegey
The Fairness Group Inc.
sliegey@equityny.com
(212) 836-9630

PORTMAN RIDGE FINANCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(in 1000’s, besides share and per share quantities)

(4) The Firm accomplished a Reverse Inventory Break up of 10 to 1 efficient August 26, 2021, the widespread shares and web asset worth per widespread share have been adjusted retroactively to replicate the break up for all durations offered.

PORTMAN RIDGE FINANCE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in 1000’s, besides share and per share quantities)
(Unaudited)

(4) The Firm accomplished a Reverse Inventory Break up of 10 to 1 efficient August 26, 2021, the widespread shares and web asset worth per widespread share have been adjusted retroactively to replicate the break up for all durations offered.