Portman Ridge Finance Q2 Earnings Call Highlights

Key Points

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• Net plus worth declined to $14.49 per stock from $15.60, mostly owed to unrealized markdowns tied to software-sector valuation pressure. Management said the markdowns mostly did not bespeak cardinal recognition deterioration.

• The institution continued to delever its equilibrium sheet: borrowings fell to $286.1 million, gross leverage improved to 1.6 times, and plus sum roseate to 162%. After quarter-end, it expanded and amended its KeyBank installation to $150 cardinal and utilized it to terminate the JPMorgan Great Lakes facility.

• Portfolio recognition prime improved, with non-accrual investments falling to 5.7% of amortized outgo from 6.2%. Investment enactment remained selective, with $20.9 cardinal of originations versus $34.9 cardinal of repayments and sales, leaving the institution successful a net-repayment position.

BCP Investment Corporation reported second-quarter results marked by little nett plus value, continued deleveraging and an betterment successful its non-accrual portfolio. Management besides elaborate a post-quarter-end amendment and enlargement of its KeyBank recognition facility, which was utilized to repay and terminate the company's Great Lakes revolving recognition installation with JPMorgan.

Chief Executive Officer Ted Goldthorpe said the institution continued to fortify its equilibrium sheet, reposition its portfolio and amended plus sum during the quarter. Total concern income was $15.2 million, portion nett concern income was $5.5 million, oregon $0.45 per share. Core nett concern income totaled $3.3 million, oregon $0.27 per share.

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The institution paid full distributions of $0.30 per stock during the quarter, consisting of a $0.27 basal organisation and a $0.03 supplemental distribution. It is paying monthly basal distributions of $0.09 per stock for July done September, and its committee approved a fourth-quarter basal organisation of $0.27 per share, payable successful monthly $0.09 installments during October, November and December.

Net Asset Value Declines connected Unrealized Marks

Net plus worth fell to $179.5 million, oregon $14.49 per share, arsenic of June 30, from $193 million, oregon $15.60 per share, astatine the extremity of the archetypal quarter. Goldthorpe said the diminution was predominantly driven by unrealized mark-to-market movements crossed the portfolio.

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Software investments represented astir 34% of unrealized markdowns during the quarter, oregon astir 47% erstwhile including software-exposed companies. Goldthorpe said absorption believed astir of the markdowns reflected sector-specific valuation unit and broader marketplace dislocation alternatively than cardinal recognition deterioration.