Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — Portman Ridge Finance — Q1 2023 Earnings Presentation
19 slides from Bcp Investment's earnings presentation, May 11, 2023
Slide 1: 2023 Q1 Earnings Presentation
2023 Q1 Earnings Presentation May 11, 2023
Slide 2: Important Information
Important Information Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements. The matters discussed in this presentation, as well as in future oral and written statements by management of Portman Ridge Finance Corporation (“PTMN”, “Portman Rid
Slide 3: Q1'23 Highlights
Q1’23 Highlights First Quarter 2023 Highlights ▪ Total investment income for the first quarter of 2023 was $20.3 million, an increase of $1.7 million as compared to $18.6 million for the fourth quarter of 2022 and an increase of $3.4 million as compared to $16.9 million for the first quarter of 2022
Slide 4: Financial Highlights
Financial Highlights ($ in thousands) Q1 2023 Core investment income $19,285 Expenses: Management fees 1,953 Performance-based incentive fees 1,808 Interest and amortization of debt issuance costs 6,332 Professional fees 603 Administrative services expense 671 Other general and administrative expens
Slide 5: Rising Rates
Rising Rates ▪ As of March 31, 2023, approximately 52% of our floating rate assets were on LIBOR contract. ▪ If all floating rate assets as of 12/31 were reset to current 3 month benchmark rates (5.364% for LIBOR and 5.079% for SOFR), we would expect to generate an incremental ~$690k of quarterly in
Slide 6: Limited Repayment Activity
Limited Repayment Activity ▪ Over the last three years, Portman has experienced an average of $1.4 million in income related to repayment / prepayment activity as compared to the current quarter of $0.85 million. Paydown Income by Quarter ($ in 000s) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 Quarter
Slide 7: NII Per Share Bridge
NII Per Share Bridge ▪ The below analysis begins with Q1 2023 net investment income and assumes no other changes to the portfolio (including accrual status of each portfolio company), investment income, professional expenses or administrative expenses other than the following: ▪ Current benchmarks a
Slide 8: Core Earning Analysis
Core Earning Analysis ($ in ‘000s except per share) Q1 2023 Interest Income: Non-controlled/non-affiliated investments 14,846 Non-controlled affiliated investments 849 Total interest income 15,695 Payment-in-kind income: Non-controlled/non-affiliated investments 1,527 Non-controlled affiliated inves
Slide 9: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in ‘000s) Q1 2023 NAV, Beginning of Period $232,123 Net realized gains (losses) from investment transactions (3,085) Net change in unrealized appreciation (depreciation) on investments (5,960) Net Investment Income 8,529 Net decrease in net assets resulting from stockh
Slide 10: Current Portfolio Profile
(1) Current Portfolio Profile Diversified Portfolio of Assets Diversification by Borrower(2) 4.4% Top 5 Borrowers, 3.9% 17.4% 106 Debt + Equity Portfolio Investee Companies 3.3% 3.0% $3.3mm / 1% Average Debt Position Size 2.8% Remainder 43.3% U.S Centric Investments: Nearly 100% US-Based Companies N
Slide 11: Portfolio Trends
(1)(2) Portfolio Trends ($ in ‘000s) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 P o rt f o lio S o urc ing ( a t F a ir V a lue ) : B C P artners $ 303,378 $ 336,689 $ 351,940 $ 367,771 $ 360,061 Legacy KCA P $ 68,378 $ 59,646 $ 53,156 $ 52,847 $ 44,061 Legacy OHA I $ 9,894 $ 10,315 $ 9,447 $ 9,179 $ 6
Slide 12: Credit Quality
Credit Quality ▪ As of March 31, 2023, five of the Company’s debt investments were on non-accrual status and represented 0.3% and 1.5% of the Company’s investment portfolio at fair value and amortized cost, respectively ($ in ‘000s) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Investments Credit Quality
Slide 13: Portfolio Composition
(1) Portfolio Composition Investment Portfolio ($ in ‘000s) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Senior Secured Loan $395,062 $414,920 $415,819 $418,722 $392,022 Junior Secured Loan 60,976 59,147 61,535 56,400 50,795 Senior Unsecured Bond 43 43 43 43 43 Equity Securities 22,633 24,805 24,487 21,9
Slide 14: M&A Value Realization
M&A Value Realization ▪ Our track record demonstrates BC Partners’ ability to efficiently realize the value of legacy portfolios acquired while rotating into BC Partners’ sourced assets ▪ We remain in the process of implementing the same strategy with the acquired and fully redeemed HCAP assets but
Slide 15: Appendix
RIDGE Appendix
Slide 16: Balance Sheet
Balance Sheet (in thousands, except share and per share amounts) March 31, 2023 December 31, 2022 (Unaudited) ASSETS Investments at fair value: Non-controlled/non-affiliated investments (amortized cost: 2023 - $485,106; 2022 - $518,699) $ 447,048 $ 483,698 Non-controlled affiliated investments (amor
Slide 17: Income Statement
Income Statement (in thousands, except share and per share amounts) For the Three Months Ended March 31, 2023 2022 INVESTMENT INCOME Interest income: Non-controlled/non-affiliated investments $ 14,846 $ 12,667 Non-controlled affiliated investments 849 591 Total interest income $ 15,695 $ 13,258 Paym
Slide 18: Corporate Leverage & Liquidity
Corporate Leverage & Liquidity Cash and Cash Equivalents ▪ Unrestricted cash and cash equivalents totaled $11.9 million as of March 31, 2023 ▪ Restricted cash of $34.2 million as of March 31, 2023 Debt Summary ▪ As of March 31, 2023, par value of outstanding borrowings was $358.3 million; there was
Slide 19: Regular Distribution Information
Regular Distribution Information (1) Date Declared Record Date Payment Date Distribution per Share 5/10/2023 5/22/2023 5/31/2023 $0.69 3/9/2023 3/20/2023 3/31/2023 $0.68 11/8/2022 11/24/2022 12/13/2022 $0.67 8/9/2022 8/16/2022 9/2/2022 $0.63 5/10/2022 5/24/2022 6/7/2022 $0.63 3/10/2022 3/21/2022 3/3
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