Portman Ridge Finance Corporation Announces Second Quarter 2025 Financial Results
Portman Ridge Finance Corporation (Nasdaq: PTMN) reported its Q2 2025 financial results and announced a transformational merger with Logan Ridge Finance Corporation. The company achieved net investment income of $4.6 million ($0.50 per share), up from $4.3 million in Q1 2025. Total investment income reached $12.6 million, with a portfolio fair value of $395.1 million across 96 companies.
Key developments include the completed merger with Logan Ridge, creating a combined entity with over $600 million in total assets. The company will rebrand as BCP Investment Corporation (BCIC) and declared a Q3 2025 distribution of $0.47 per share plus $0.02 supplemental. The NAV stood at $164.7 million ($17.89 per share) as of June 30, 2025, compared to $173.5 million in Q1.
The investment portfolio maintained a weighted average yield of 10.7%, with leverage at 1.4x and an asset coverage ratio of 165%. The company reported six investments on non-accrual, representing 2.1% of the portfolio at fair value.
Portman Ridge Finance Corporation (Nasdaq: PTMN) ha comunicato i risultati finanziari del secondo trimestre 2025 e ha annunciato una fusione trasformativa con Logan Ridge Finance Corporation. La società ha registrato un reddito netto da investimenti di 4,6 milioni di dollari (0,50 dollari per azione), in aumento rispetto ai 4,3 milioni del primo trimestre 2025. Il reddito totale da investimenti ha raggiunto 12,6 milioni di dollari, con un valore equo del portafoglio pari a 395,1 milioni di dollari distribuito su 96 società.
Tra gli sviluppi principali si segnala la fusione completata con Logan Ridge, che ha dato vita a un'entità combinata con oltre 600 milioni di dollari di attività totali. La società adotterà il nuovo nome BCP Investment Corporation (BCIC) e ha dichiarato una distribuzione per il terzo trimestre 2025 di 0,47 dollari per azione più un supplemento di 0,02 dollari. Il NAV al 30 giugno 2025 era pari a 164,7 milioni di dollari (17,89 dollari per azione), rispetto a 173,5 milioni nel primo trimestre.
Il portafoglio di investimenti ha mantenuto un rendimento medio ponderato del 10,7%, con una leva finanziaria di 1,4x e un rapporto di copertura degli attivi del 165%. La società ha segnalato sei investimenti in stato di non accantonamento, rappresentando il 2,1% del portafoglio a valore equo.
Portman Ridge Finance Corporation (Nasdaq: PTMN) informó sus resultados financieros del segundo trimestre de 2025 y anunció una fusión transformadora con Logan Ridge Finance Corporation. La compañía alcanzó un ingreso neto por inversiones de 4,6 millones de dólares (0,50 dólares por acción), superior a los 4,3 millones del primer trimestre de 2025. El ingreso total por inversiones fue de 12,6 millones de dólares, con un valor justo del portafolio de 395,1 millones de dólares distribuido en 96 empresas.
Entre los desarrollos clave se destaca la fusión completada con Logan Ridge, creando una entidad combinada con más de 600 millones de dólares en activos totales. La compañía se renombrará como BCP Investment Corporation (BCIC) y declaró una distribución para el tercer trimestre de 2025 de 0,47 dólares por acción más un suplemento de 0,02 dólares. El NAV al 30 de junio de 2025 fue de 164,7 millones de dólares (17,89 dólares por acción), en comparación con 173,5 millones en el primer trimestre.
El portafolio de inversiones mantuvo un rendimiento promedio ponderado del 10,7%, con un apalancamiento de 1,4x y una ratio de cobertura de activos del 165%. La compañía reportó seis inversiones en estado de no acumulación, representando el 2,1% del portafolio a valor justo.
Portman Ridge Finance Corporation (나스닥: PTMN)은 2025년 2분기 재무 실적을 발표하고 Logan Ridge Finance Corporation과의 변혁적 합병을 발표했습니다. 회사는 순투자수익 460만 달러(주당 0.50달러)를 기록했으며, 이는 2025년 1분기의 430만 달러에서 증가한 수치입니다. 총 투자수익은 1,260만 달러에 달했으며, 96개 기업에 걸쳐 공정가치 기준 3억 9,510만 달러의 포트폴리오를 보유하고 있습니다.
주요 발전 사항으로는 Logan Ridge와의 합병 완료로, 총 자산 6억 달러 이상의 통합 법인이 탄생했습니다. 회사는 BCP Investment Corporation (BCIC)으로 브랜드명을 변경하고, 2025년 3분기 배당금 주당 0.47달러와 추가 0.02달러를 선언했습니다. 2025년 6월 30일 기준 순자산가치는 1억 6,470만 달러(주당 17.89달러)로 1분기 1억 7,350만 달러에 비해 감소했습니다.
투자 포트폴리오는 가중평균 수익률 10.7%을 유지했으며, 레버리지는 1.4배, 자산 커버리지 비율은 165%였습니다. 회사는 공정가치 기준 포트폴리오의 2.1%에 해당하는 6건의 비수익 투자 건을 보고했습니다.
Portman Ridge Finance Corporation (Nasdaq : PTMN) a publié ses résultats financiers du deuxième trimestre 2025 et annoncé une fusion transformationnelle avec Logan Ridge Finance Corporation. La société a réalisé un revenu net d'investissement de 4,6 millions de dollars (0,50 dollar par action), en hausse par rapport à 4,3 millions au premier trimestre 2025. Le revenu total d'investissement a atteint 12,6 millions de dollars, avec une valeur de portefeuille de 395,1 millions de dollars répartie sur 96 entreprises.
Les développements clés incluent la fusion achevée avec Logan Ridge, créant une entité combinée avec plus de 600 millions de dollars d'actifs totaux. La société sera renommée BCP Investment Corporation (BCIC) et a déclaré une distribution pour le troisième trimestre 2025 de 0,47 dollar par action plus un supplément de 0,02 dollar. La valeur liquidative s'élevait à 164,7 millions de dollars (17,89 dollars par action) au 30 juin 2025, contre 173,5 millions au premier trimestre.
Le portefeuille d'investissements a maintenu un rendement moyen pondéré de 10,7%, avec un levier de 1,4x et un ratio de couverture des actifs de 165%. La société a signalé six investissements en non-accrual, représentant 2,1% du portefeuille à la juste valeur.
Portman Ridge Finance Corporation (Nasdaq: PTMN) veröffentlichte die Finanzergebnisse für das zweite Quartal 2025 und kündigte eine transformative Fusion mit Logan Ridge Finance Corporation an. Das Unternehmen erzielte einen Nettoanlageertrag von 4,6 Millionen USD (0,50 USD pro Aktie), gegenüber 4,3 Millionen USD im ersten Quartal 2025. Das gesamte Anlageergebnis betrug 12,6 Millionen USD, mit einem Portfoliobuchwert von 395,1 Millionen USD, verteilt auf 96 Unternehmen.
Wesentliche Entwicklungen umfassen die abgeschlossene Fusion mit Logan Ridge, die eine kombinierte Einheit mit über 600 Millionen USD an Gesamtvermögen schafft. Das Unternehmen wird sich in BCP Investment Corporation (BCIC) umbenennen und eine Dividende für das dritte Quartal 2025 von 0,47 USD pro Aktie plus 0,02 USD als Zusatzdividende ausrufen. Das NAV lag zum 30. Juni 2025 bei 164,7 Millionen USD (17,89 USD pro Aktie), verglichen mit 173,5 Millionen im ersten Quartal.
Das Investmentportfolio hielt eine gewichtete Durchschnittsrendite von 10,7%, mit einem Hebel von 1,4x und einer Asset-Coverage-Quote von 165%. Das Unternehmen meldete sechs notleidende Investments, die 2,1% des Portfolios zum Fair Value ausmachen.
- Merger with Logan Ridge creates enhanced scale with over $600M in total assets
- Net investment income increased to $0.50 per share from $0.47 in Q1 2025
- Total investment income grew to $12.6M from $12.1M in Q1 2025
- Declared $0.47 base distribution plus $0.02 supplemental for Q3 2025
- Strong weighted average yield of 10.7% on investment portfolio
- Low non-accrual rate of 2.1% of portfolio at fair value
- NAV declined to $17.89 per share from $18.85 in Q1 2025
- Net realized loss on investments of $15.8M in Q2 2025
- Leverage increased to 1.4x from 1.3x in Q1 2025
- Total investment portfolio decreased to $395.1M from $406.4M in Q1 2025
Insights
PTMN completed Logan Ridge merger, reported $0.50 NII per share, and declared $0.49 total distribution amid portfolio quality concerns.
Portman Ridge has just closed its merger with Logan Ridge Finance Corporation, creating a scaled BDC platform with over
Q2 results show net investment income of
The dividend announcement includes a
NAV declined to
Completed Merger with Logan Ridge Finance Corporation
Reports Net Investment Income of
Announces Third Quarter 2025 Quarterly Base Distribution of
NEW YORK, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Portman Ridge Finance Corporation (Nasdaq: PTMN) (the “Company” or “Portman Ridge”) announced today its financial results for the second quarter ended June 30, 2025.
Transformational Milestone
- On July 15, 2025, Portman Ridge closed the previously announced merger of Logan Ridge Finance Corporation (“Logan Ridge”) with and into Portman Ridge, with Portman Ridge remaining as the surviving company.
- We believe the combined company’s enhanced scale with total assets in excess of
$600 million (as of July 11, 2025), its further diversified portfolio, cost savings due to lower overall operating expenses, and improved stock trading liquidity will deliver compelling risk-adjusted returns for our shareholders. - In the following weeks, Portman Ridge will rebrand and begin operating under the name BCP Investment Corporation. In connection with the rebranding, the Company will continue to trade on the Nasdaq under the new ticker symbol “BCIC”.
Second Quarter 2025 Highlights
- Total investment income for the second quarter of 2025 was
$12.6 million , up from$12.1 million in the first quarter of 2025. - Core investment income1, excluding the impact of purchase price accounting, for the second quarter of 2025 was
$12.6 million , as compared to$12.1 million for the first quarter of 2025. - Net investment income (“NII”) for the second quarter of 2025 was
$4.6 million ($0.50 per share), as compared to$4.3 million ($0.47 per share) in the first quarter of 2025. - Net asset value (“NAV”), as of June 30, 2025, was
$164.7 million ($17.89 per share), as compared to NAV of$173.5 million ($18.85 per share) as of March 31, 2025. - Deployments of approximately
$10.9 million and sales and repayments of approximately$17.0 million , resulting in net repayments and sales of approximately$6.1 million .
Subsequent Events
- On August 7, 2025, the Company declared a regular quarterly base distribution of
$0.47 per share of common stock and a supplemental cash distribution of$0.02 per share of common stock. The distribution is payable on August 29, 2025 to stockholders of record at the close of business on August 18, 2025. - On July 15, 2025, the Company announced the completion of its acquisition of Logan Ridge Finance Corporation, a Maryland corporation (“LRFC”, and such transaction, the “LRFC Acquisition”), pursuant to the terms of the merger agreement, dated January 29, 2025 (the “LRFC Merger Agreement”). To effect the acquisition, a wholly owned merger subsidiary of the Company merged with and into LRFC, with LRFC surviving the merger as the Company’s wholly owned subsidiary. Immediately thereafter and as a single integrated transaction, LRFC consummated a second merger, whereby LRFC merged with and into the Company, with the Company surviving the merger. Based on July 11, 2025 financial data, the combined company had total assets in excess of
$600 million . Under the terms of the LRFC Merger Agreement, each share of LRFC common stock issued and outstanding was converted into the right to receive 1.500 newly-issued shares of common stock of the Company with cash to be paid (without interest) in lieu of fractional shares. As additional consideration funded by LRFC’s investment adviser, LRFC shareholders of record as of May 6, 2025 received a cash payment of$0.47 per share. In addition, LRFC shareholders of record as of July 14, 2025 received a tax distribution of$0.38 per share from LRFC. The Company will seek to leverage the combined company’s enhanced scale, further diversified portfolio, cost savings due to lower overall operating expenses, and improved stock trading liquidity to deliver compelling risk-adjusted returns for its shareholders. Please see the Company’s Current Report on Form 8-K filed on July 16, 2025 for more information.
Management Commentary
Ted Goldthorpe, Chief Executive Officer of Portman Ridge, stated, “We continued to advance our strategic priorities in the second quarter, generating net investment income of
The recent completion of our merger with Logan Ridge marks a transformational milestone for the Company. We’re proud to have successfully closed this transaction and expect it to provide increased scale, broader portfolio diversification, enhanced financial flexibility, and earnings accretion generated by cost synergies under the Company’s new name and ticker. We believe the combined platform will support stronger operating efficiency and improved shareholder outcomes over time.
To reflect this next chapter and the strength of our adviser, we will be changing our corporate name to BCP Investment Corporation (Nasdaq: BCIC) in the following weeks. The new name highlights our alignment with BC Partners, a global alternative investment platform with deep credit expertise, and reinforces our commitment to building a leading Business Development Company.
As we move forward, we remain committed to disciplined investment execution, active portfolio management, and thoughtful capital allocation, all with the goal of generating attractive, long-term returns for our shareholders.”
Selected Financial Highlights
- Total investment income for the quarter ended June 30, 2025, was
$12.6 million , of which$10.9 million was attributable to interest income, inclusive of payment-in-kind income, from the Debt Securities Portfolio. This compares to total investment income of$16.3 million for the quarter ended June 30, 2024, of which$13.9 million was attributable to interest income, inclusive of payment-in-kind income, from the Debt Securities Portfolio. - Core investment income for the quarter ended June 30, 2025, excluding the impact of purchase discount accretion, was
$12.6 million , as compared to core investment income of$16.2 million for the quarter ended June 30, 2024. - Net investment income (“NII”) for the quarter ended June 30, 2025, was
$4.6 million ($0.50 per share) as compared to$6.5 million ($0.70 per share) for the quarter ended June 30, 2024. - Net asset value (“NAV”) as of June 30, 2025, was
$164.7 million ($17.89 per share), as compared to$173.5 million ($18.85 per share) for the first quarter of 2025. - Investment portfolio at fair value as of June 30, 2025, was
$395.1 million , comprised of 96 different portfolio companies. Our debt investment portfolio, excluding our investments in the CLO Funds, equities and Joint Ventures, totaled$323.1 million at fair value as of June 30, 2025, and was spread across 25 different industries comprised of 69 different portfolio companies with an average par balance per entity of approximately$2.6 million . This compares to a total investment portfolio at fair value as of March 31, 2025, of$406.4 million , comprised of 93 different portfolio companies. Our debt investment portfolio, excluding our investments in the CLO Funds, equities and Joint Ventures, totaled$324.8 million at fair value as of March 31, 2025, spread across 24 different industries and comprised of 72 different portfolio companies, with an average par balance per entity of approximately$2.6 million . - Debt investments on non-accrual, as of June 30, 2025, were six, representing
2.1% and4.8% of the Company’s investment portfolio at fair value and amortized cost, respectively. This compares to six debt investments representing2.6% and4.7% of the Company’s investment portfolio at fair value and amortized cost, respectively, as of March 31, 2025. - Weighted average annualized yield was approximately
10.7% (excluding income from non-accruals and collateralized loan obligations) as of June 30, 2025. - Par value of outstanding borrowings, as of June 30, 2025, was
$255.4 million , which remained unchanged from March 31, 2025, with an asset coverage ratio of total assets to total borrowings of165% as compared to168% as of March 31, 2025. On a net basis, leverage as of June 30, 2025, was 1.4x2 compared to 1.3x2 as of March 31, 2025.
Results of Operations
Operating results for the three and six months ended June 30, 2025, and June 30, 2024, were as follows:
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||
| ($ in thousands, except share and per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||
| Total investment income | ||||||||
| Total expenses | 8,073 | 9,860 | 15,851 | 20,161 | ||||
| Net Investment Income | 4,557 | 6,477 | 8,897 | 12,702 | ||||
| Net realized gain (loss) on investments | (15,840) | (6,922) | (16,013) | (8,979) | ||||
| Net change in unrealized gain (loss) on investments | 6,628 | (5,966) | 2,725 | (5,895) | ||||
| Tax (provision) benefit on realized and unrealized gains (losses) on investments | 137 | 78 | (209) | 537 | ||||
| Net realized and unrealized appreciation (depreciation) on investments, net of taxes | (9,075) | (12,810) | (13,497) | (14,337) | ||||
| Net realized gain (loss) on extinguishment of debt | — | (39) | — | (252) | ||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | (4,518) | (6,372) | (4,600) | (1,887) | ||||
| Net Increase (Decrease) In Net Assets Resulting from Operations per Common Share: | ||||||||
| Basic and Diluted: | ||||||||
| Net Investment Income Per Common Share: | ||||||||
| Basic and Diluted: | ||||||||
| Weighted Average Shares of Common Stock Outstanding — Basic and Diluted | 9,204,657 | 9,293,687 | 9,201,451 | 9,319,272 | ||||
Investment Income
The composition of our investment income for the three and six months ended June 30, 2025, and June 30, 2024, was as follows:
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| ($ in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Interest income, excluding CLO income and purchase discount accretion | $ | 8,573 | $ | 11,589 | $ | 16,095 | $ | 23,675 | ||||||||
| Purchase discount accretion | — | 112 | 16 | 185 | ||||||||||||
| PIK income | 2,449 | 2,201 | 5,510 | 4,207 | ||||||||||||
| CLO income | 214 | 524 | 292 | 1,081 | ||||||||||||
| JV income | 1,213 | 1,800 | 2,630 | 3,453 | ||||||||||||
| Fees and other income | 181 | 111 | 205 | 262 | ||||||||||||
| Investment Income | $ | 12,630 | $ | 16,337 | $ | 24,748 | $ | 32,863 | ||||||||
| Less: Purchase discount accretion | $ | — | $ | (112 | ) | $ | (16 | ) | $ | (185 | ) | |||||
| Core Investment Income | $ | 12,630 | $ | 16,225 | $ | 24,732 | $ | 32,678 | ||||||||
Fair Value of Investments
The composition of our investment portfolio as of June 30, 2025, and December 31, 2024, at cost and fair value was as follows:
| ($ in thousands) | June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Security Type | Cost/Amortized Cost | Fair Value | Fair Value Percentage of Total Portfolio | Cost/Amortized Cost | Fair Value | Fair Value Percentage of Total Portfolio | ||||||||||||||||||
| First Lien Debt | $ | 312,114 | $ | 291,071 | 73.7 | % | $ | 311,673 | $ | 289,957 | 71.6 | % | ||||||||||||
| Second Lien Debt | 35,576 | 30,276 | 7.7 | % | 34,892 | 28,996 | 7.2 | % | ||||||||||||||||
| Subordinated Debt | 6,103 | 1,750 | 0.4 | % | 8,059 | 1,740 | 0.4 | % | ||||||||||||||||
| Collateralized Loan Obligations | 2,527 | 3,263 | 0.8 | % | 5,318 | 5,193 | 1.3 | % | ||||||||||||||||
| Joint Ventures | 60,709 | 44,634 | 11.3 | % | 66,747 | 54,153 | 13.4 | % | ||||||||||||||||
| Equity | 28,944 | 23,919 | 6.1 | % | 31,921 | 24,762 | 6.1 | % | ||||||||||||||||
| Asset Manager Affiliates(1) | 17,791 | — | — | 17,791 | — | — | ||||||||||||||||||
| Derivatives | 31 | 196 | 0.0 | % | 31 | 220 | — | |||||||||||||||||
| Total | $ | 463,795 | $ | 395,109 | 100.0 | % | $ | 476,432 | $ | 405,021 | 100.0 | % | ||||||||||||
(1) Represents the equity investment in the Asset Manager Affiliates.
Liquidity and Capital Resources
As of June 30, 2025, the Company had approximately
As of June 30, 2025, and December 31, 2024, the fair value of investments and cash were as follows:
| ($ in thousands) | ||||||||
| Security Type | June 30, 2025 | December 31, 2024 | ||||||
| Cash and Cash Equivalents | $ | 11,222 | $ | 17,532 | ||||
| Restricted Cash | 13,357 | 22,421 | ||||||
| First Lien Debt | 291,071 | 289,957 | ||||||
| Second Lien Debt | 30,276 | 28,996 | ||||||
| Subordinated Debt | 1,750 | 1,740 | ||||||
| Equity | 23,919 | 24,762 | ||||||
| Collateralized Loan Obligations | 3,263 | 5,193 | ||||||
| Asset Manager Affiliates | — | — | ||||||
| Joint Ventures | 44,634 | 54,153 | ||||||
| Derivatives | 196 | 220 | ||||||
| Total | $ | 419,688 | $ | 444,974 | ||||
As of June 30, 2025, the Company had unrestricted cash of
Interest Rate Risk
The Company’s investment income is affected by fluctuations in various interest rates, including SOFR and prime rates.
As of June 30, 2025, approximately
In periods of rising or lowering interest rates, the cost of the portion of debt associated with the
Generally, the Company would expect that an increase in the base rate index for floating rate investment assets would increase gross investment income and a decrease in the base rate index for such assets would decrease gross investment income (in either case, such increase/decrease may be limited by interest rate floors/minimums for certain investment assets).
| Impact on net investment income from a change in interest rates at: | ||||||||||||
| ($ in thousands) | 1% | 2% | 3% | |||||||||
| Increase in interest rate | $ | 1,477 | $ | 2,955 | $ | 4,432 | ||||||
| Decrease in interest rate | $ | (1,477 | ) | $ | (2,912 | ) | $ | (4,105 | ) | |||
Conference Call and Webcast
We will hold a conference call on Friday, August 8, 2025, at 10:00 am Eastern Time to discuss our second quarter 2025 financial results. To access the call, stockholders, prospective stockholders and analysts should dial (646) 307-1963 approximately 10 minutes prior to the start of the conference call and use the conference ID 1430967.
A replay of this conference call will be available shortly after the live call through August 15, 2025.
A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis on the Company’s website www.portmanridge.com in the Investor Relations section under Events and Presentations. The webcast can also be accessed by clicking the following link: https://edge.media-server.com/mmc/p/aty7k6qp. The online archive of the webcast will be available on the Company’s website shortly after the call.
About Portman Ridge Finance Corporation
Portman Ridge Finance Corporation (Nasdaq: PTMN) is a publicly traded, externally managed investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Portman Ridge’s middle market investment business originates, structures, finances and manages a portfolio of term loans, mezzanine investments and selected equity securities in middle market companies. Portman Ridge’s investment activities are managed by its investment adviser, Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors L.P.
Portman Ridge’s filings with the Securities and Exchange Commission (the “SEC”), earnings releases, press releases and other financial, operational and governance information are available on the Company’s website at www.portmanridge.com.
About BC Partners Advisors L.P. and BC Partners Credit
BC Partners is a leading international investment firm in private equity, private credit and real estate strategies. Established in 1986, BC Partners has played an active role in developing the European buyout market for three decades.
Today, BC Partners executives operate across markets as an integrated team through the firm’s offices in North America and Europe. For more information, please visit https://www.bcpartners.com/.
BC Partners Credit was launched in February 2017 and has pursued a strategy focused on identifying attractive credit opportunities in any market environment and across sectors, leveraging the deal sourcing and infrastructure made available from BC Partners.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. The matters discussed in this press release, as well as in future oral and written statements by management of Portman Ridge Finance Corporation, that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements relate to future events or our future financial performance and include, but are not limited to, projected financial performance, expected development of the business, plans and expectations about future investments and the future liquidity of the Company. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “outlook”, “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements.
Important assumptions include our ability to originate new investments, and achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this press release should not be regarded as a representation that such plans, estimates, expectations or objectives will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) uncertainty of the expected financial performance of the Company; (2) expected synergies and savings associated with merger transactions effectuated by the Company; (3) the ability of the Company and/or its adviser to implement its business strategy; (4) evolving legal, regulatory and tax regimes; (5) changes in general economic and/or industry specific conditions, including but not limited to the impact of inflation; (6) the impact of increased competition; (7) business prospects and the prospects of the Company’s portfolio companies; (8) contractual arrangements with third parties; (9) any future financings by the Company; (10) the ability of Sierra Crest Investment Management LLC to attract and retain highly talented professionals; (11) the Company’s ability to fund any unfunded commitments; (12) any future distributions by the Company; (13) changes in regional or national economic conditions and their impact on the industries in which we invest; and (14) other changes in the conditions of the industries in which we invest and other factors enumerated in our filings with the SEC. The forward-looking statements should be read in conjunction with the risks and uncertainties discussed in the Company’s filings with the SEC, including the Company’s most recent Form 10-K and other SEC filings. We do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required to be reported under the rules and regulations of the SEC. Although the Company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that the Company in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Contacts:
Portman Ridge Finance Corporation
650 Madison Avenue, 3rd floor
New York, NY 10022
info@portmanridge.com
Brandon Satoren
Chief Financial Officer
Brandon.Satoren@bcpartners.com
(212) 891-2880
The Equity Group Inc.
Lena Cati
lcati@equityny.com
(212) 836-9611
Val Ferraro
vferraro@equityny.com
(212) 836-9633
PORTMAN RIDGE FINANCE CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share and per share amounts) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Investments at fair value: | ||||||||
| Non-controlled/non-affiliated investments (amortized cost of | $ | 329,911 | $ | 327,622 | ||||
| Non-controlled affiliated investments (amortized cost of | 53,916 | 64,384 | ||||||
| Controlled affiliated investments (amortized cost of | 11,282 | 13,015 | ||||||
| Total Investments at fair value (amortized cost of | $ | 395,109 | $ | 405,021 | ||||
| Cash and cash equivalents | 11,222 | 17,532 | ||||||
| Restricted cash | 13,357 | 22,421 | ||||||
| Interest receivable | 4,429 | 6,088 | ||||||
| Dividend receivable | 895 | 1,367 | ||||||
| Other assets | 2,983 | 1,205 | ||||||
| Total Assets | $ | 427,995 | $ | 453,634 | ||||
| LIABILITIES | ||||||||
| $ | 107,356 | $ | 106,983 | |||||
| Great Lakes Portman Ridge Funding LLC Revolving Credit Facility (net of deferred financing costs of | 146,306 | 158,157 | ||||||
| Accounts payable, accrued expenses and other liabilities | 3,871 | 3,007 | ||||||
| Accrued interest payable | 3,321 | 3,646 | ||||||
| Due to affiliates | — | 635 | ||||||
| Management and incentive fees payable | 2,412 | 2,713 | ||||||
| Total Liabilities | $ | 263,266 | $ | 275,141 | ||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| NET ASSETS | ||||||||
| Common stock, par value | $ | 92 | $ | 92 | ||||
| Capital in excess of par value | 714,459 | 714,331 | ||||||
| Total distributable (loss) earnings | (549,822 | ) | (535,930 | ) | ||||
| Total Net Assets | $ | 164,729 | $ | 178,493 | ||||
| Total Liabilities and Net Assets | $ | 427,995 | $ | 453,634 | ||||
| Net Asset Value Per Common Share | $ | 17.89 | $ | 19.41 | ||||
| PORTMAN RIDGE FINANCE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| INVESTMENT INCOME | ||||||||||||||||
| Interest income: | ||||||||||||||||
| Non-controlled/non-affiliated investments | $ | 8,463 | $ | 11,913 | $ | 15,763 | $ | 24,534 | ||||||||
| Non-controlled affiliated investments | 324 | 312 | 640 | 407 | ||||||||||||
| Total interest income | 8,787 | 12,225 | 16,403 | 24,941 | ||||||||||||
| Payment-in-kind income: | ||||||||||||||||
| Non-controlled/non-affiliated investments(1) | 2,354 | 2,018 | 5,207 | 3,912 | ||||||||||||
| Non-controlled affiliated investments | 95 | 183 | 303 | 295 | ||||||||||||
| Total payment-in-kind income | 2,449 | 2,201 | 5,510 | 4,207 | ||||||||||||
| Dividend income: | ||||||||||||||||
| Non-controlled affiliated investments | 1,213 | 1,800 | 2,630 | 3,453 | ||||||||||||
| Total dividend income | 1,213 | 1,800 | 2,630 | 3,453 | ||||||||||||
| Fees and other income: | ||||||||||||||||
| Non-controlled/non-affiliated investments | 98 | 111 | 122 | 262 | ||||||||||||
| Non-controlled affiliated investments | 83 | — | 83 | — | ||||||||||||
| Total fees and other income | 181 | 111 | 205 | 262 | ||||||||||||
| Total investment income | 12,630 | 16,337 | 24,748 | 32,863 | ||||||||||||
| EXPENSES | ||||||||||||||||
| Management fees | 1,445 | 1,680 | 2,911 | 3,409 | ||||||||||||
| Performance-based incentive fees | 967 | 1,374 | 1,887 | 2,608 | ||||||||||||
| Interest and amortization of debt issuance costs | 4,230 | 5,365 | 8,528 | 11,091 | ||||||||||||
| Professional fees | 403 | 469 | 855 | 1,074 | ||||||||||||
| Administrative services expense | 450 | 361 | 861 | 717 | ||||||||||||
| Directors' expense | 142 | 162 | 286 | 323 | ||||||||||||
| Other general and administrative expenses | 436 | 449 | 523 | 939 | ||||||||||||
| Total expenses | 8,073 | 9,860 | 15,851 | 20,161 | ||||||||||||
| NET INVESTMENT INCOME | 4,557 | 6,477 | 8,897 | 12,702 | ||||||||||||
| REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS | ||||||||||||||||
| Net realized gains (losses) from investment transactions: | ||||||||||||||||
| Non-controlled/non-affiliated investments | (9,648 | ) | (694 | ) | (9,729 | ) | (2,335 | ) | ||||||||
| Non-controlled affiliated investments | — | — | (92 | ) | — | |||||||||||
| Controlled affiliated investments | (6,192 | ) | (6,228 | ) | (6,192 | ) | (6,644 | ) | ||||||||
| Net realized gain (loss) on investments | (15,840 | ) | (6,922 | ) | (16,013 | ) | (8,979 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Non-controlled/non-affiliated investments | 3,390 | (10,163 | ) | 1,889 | (10,822 | ) | ||||||||||
| Non-controlled affiliated investments | (3,014 | ) | (2,055 | ) | (4,154 | ) | (1,915 | ) | ||||||||
| Controlled affiliated investments | 6,287 | 6,252 | 5,013 | 6,842 | ||||||||||||
| Derivatives | (35 | ) | — | (23 | ) | — | ||||||||||
| Net change in unrealized appreciation (depreciation) on investments | 6,628 | (5,966 | ) | 2,725 | (5,895 | ) | ||||||||||
| Tax (provision) benefit on realized and unrealized gains (losses) on investments | 137 | 78 | (209 | ) | 537 | |||||||||||
| Net realized and unrealized appreciation (depreciation) on investments, net of taxes | (9,075 | ) | (12,810 | ) | (13,497 | ) | (14,337 | ) | ||||||||
| Net realized gain (loss) on extinguishment of debt | — | (39 | ) | — | (252 | ) | ||||||||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (4,518 | ) | $ | (6,372 | ) | $ | (4,600 | ) | $ | (1,887 | ) | ||||
| Net Increase (Decrease) In Net Assets Resulting from Operations per Common Share: | ||||||||||||||||
| Basic and Diluted: | $ | (0.49 | ) | $ | (0.69 | ) | $ | (0.50 | ) | $ | (0.20 | ) | ||||
| Net Investment Income Per Common Share: | ||||||||||||||||
| Basic and Diluted: | $ | 0.50 | $ | 0.70 | $ | 0.97 | $ | 1.36 | ||||||||
| Weighted Average Shares of Common Stock Outstanding — Basic and Diluted | 9,204,657 | 9,293,687 | 9,201,451 | 9,319,272 | ||||||||||||
| ________________________________ (1) During the three months ended June 30, 2025 and 2024, the Company received | ||||||||||||||||
________________________________
1 Core investment income represents reported total investment income as determined in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, less the impact of purchase discount accretion in connection with the Garrison Capital Inc. (“GARS”) and Harvest Capital Credit Corporation (“HCAP”) mergers. Portman Ridge believes presenting core investment income and the related per share amount is useful and appropriate supplemental disclosure for analyzing its financial performance due to the unique circumstance giving rise to the purchase accounting adjustment. However, core investment income is a non-U.S. GAAP measure and should not be considered as a replacement for total investment income and other earnings measures presented in accordance with U.S. GAAP. Instead, core investment income should be reviewed only in connection with such U.S. GAAP measures in analyzing Portman Ridge’s financial performance.
2 Net leverage is calculated as the ratio between (A) debt, excluding unamortized debt issuance costs, less available cash and cash equivalents, and restricted cash and (B) NAV. Portman Ridge believes presenting a net leverage ratio is useful and appropriate supplemental disclosure because it reflects the Company’s financial condition net of
FAQ
What were Portman Ridge's (PTMN) key financial results for Q2 2025?
What are the details of Portman Ridge's merger with Logan Ridge?
What is Portman Ridge's Q3 2025 dividend distribution?
How is Portman Ridge's investment portfolio performing as of Q2 2025?
What changes are coming to Portman Ridge's corporate identity?
