Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — Portman Ridge Finance — Q4 2020 Earnings Presentation
20 slides from Bcp Investment's earnings presentation, Mar 12, 2021
Slide 1: 2020 Q4 Earnings Presentation
2020 Q4 Earnings Presentation March 12, 2021
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: Quarterly Highlights
Quarterly Highlights Quarter Ended December 31, 2020 M&A ▪ On October 28, we closed the previously announced merger with Garrison Capital Inc. (“GARS” or “Garrison”). Through 12/31/2020, we sold $92.4 million of assets acquired via Garrison (inclusive of a $0.6 million increase relative to fair valu
Slide 4: Merger with Harvest Credit
Merger with Harvest Credit ▪ On December 23, 2020, the Company entered into a merger agreement with Harvest Credit Capital Corporation (“Harvest” or “HCAP”)(NASDAQ: HCAP) for a cash and stock transaction (the “HCAP Merger Agreement”). ▪ Consideration will be paid on a NAV-for-NAV basis. Harvest stoc
Slide 5: M&A Value Realization
M&A Value Realization Our track record demonstrates BC Partners’ ability to efficiently realize its value while rotating into BC Partners’ sourced assets OHAI GARS $316,452 $316,757 $60,550 $61,439 34% of Portfolio FMV at $107,048 62% of Portfolio FMV transaction at $37,926 has been transaction real
Slide 6: Current Portfolio Profile
(1) Current Portfolio Profile (2) Diversified Portfolio of Assets Diversification by Borrower Top 5 1.9% Borrowers, Next 5 -10 109 Debt Portfolio Companies and 143 Separate Securities 1.9% Investments, 10.9% 2.0% 8.9% 2.5% $2.8mm / 1.0% Average Debt Position Size 2.6% Next 11 -25 Investments, 23.6%
Slide 7: Financial Highlights
Financial Highlights ($ in ‘000s) Q4 2019* Q1 2020 Q2 2020 Q3 2020 Q4 2020* Total investment income $6,705 $7,754 $7,314 $7,787 $19,909 Expenses: Management fees 1,077 1,012 1,008 1,044 1,515 Performance-based incentive fees (1) -- 102 455 572 3,729 Interest and amortization of debt issuance costs 2
Slide 8: Financial Highlights (cont’d)
Financial Highlights (cont’d) Per Share Q4 2019* Q1 2020 Q2 2020 Q3 2020 Q4 2020* Net Investment Income $0.06 $0.06 $0.06 $0.06 $0.14 Less: GARS purchase accounting impact -- -- -- -- $(0.06) Adjusted net investment income (1) $0.06 $0.06 $0.06 $0.06 $0.08 Net Realized and Unrealized Gain / (Loss) $
Slide 9: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in ‘000s) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 NAV, Beginning of Period $132,723 $152,199 $120,370 $120,714 $125,946 (1) Realized Gains (Losses) from Investments (1,326) (1,048) (882) (1,890) (131)(1) (1) Unrealized Gains (Losses) (2,649) (30,924) 1,565 7,512 (206)(
Slide 10: Portfolio Composition
(1) Portfolio Composition Investment Portfolio ($ in ‘000s) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 First Lien Debt $87,522 $105,379 $117,265 $114,022 $311,445 Second Lien Debt 95,188 83,926 78,366 79,851 75,807 First Lien Last Out 500 8,050 7,619 7,583 17,401 Equity Securities 9,864 8,046 9,538 9,7
Slide 11: Portfolio Trends
(1) Portfolio Trends ($ in ‘000s) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Portfolio Sourcing (at Fair Value): Sierra Crest Investment Management 104,223 133,315 149,246 148,289 151,522 Legacy GARS n/a n/a n/a n/a 209,710 Legacy KCAP 133,686 106,241 100,653 104,023 102,993 Legacy OHAI 35,781 30,303 2
Slide 12: Credit Quality
Credit Quality ($ in ‘000s) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Investments Credit Quality – Internal Rating (1) Performing 91.8% 91.6% 91.8% 95.8% 94.5% Underperforming 8.2% 8.4% 8.2% 4.2% 5.5% Investments on Non-Accrual Status Number of Non-Accrual Investments 7 9 9 8 8 Non-Accrual Investments
Slide 13: Corporate Leverage & Liquidity
Corporate Leverage & Liquidity Cash and Cash Equivalents ▪ Unrestricted cash and cash equivalents totaled $7.0 million at December 31, 2020 ▪ Restricted cash of $75.9 million at December 31, 2020 represents cash held to repay borrowings. Debt Summary ▪ Assumed 2018-2 Secured Notes due 2029 as part o
Slide 14: Joint Venture – F3C JV
Joint Venture – F3C JV Joint Venture with Freedom 3 Capital (“KCAP Freedom 3 JV”) Asset Mix and Diversification (1) Top Primarily invests in senior loans of middle-market companies Revolver Remaing Borrower 0.1% Borrowers 20.8% 2.6% Second Lien TL 2.9% Borrower #2 Equity ownership: 60% PTMN - #5 7.9
Slide 15: Joint Venture – Great Lakes
Joint Venture – Great Lakes BCP Great Lakes Holdings LP Joint Venture (“Great Lakes JV”) Asset Mix and Diversification (1) Co-investment vehicle that primarily invests in Borrower #10, Borrower #11, Borrower #12, 3.8% 3.2% first lien unitranche loans 4.3% Borrower #9, 4.8% Borrower #1, 21.3% Equity
Slide 16: Appendix
RIDGE Appendix
Slide 17: Income Statement
Income Statement ($ in '000s, except per share data) 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 INVESTMENT INCOME Interest from investments in debt securities 3,727 4,580 4,814 4,517 14,300 Payment-in-kind investment income 281 309 382 434 2,092 Interest from short-term investments 13 15 - - - Investme
Slide 18: Balance Sheet
Balance Sheet ($ in '000s, except per share data) 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 ASSETS Total Investments at Fair Value 277,931 272,484 281,295 290,113 487,737 Cash 137 403 414 677 6,990 Restricted Cash 4,967 4,728 11,398 4,907 75,913 Interest Receivable 1,367 921 1,909 1,927 2,973 Receivab
Slide 19: Regular Distribution Information
Regular Distribution Information Date Declared Record Date Payment Date Distribution per Share 2/12/2021 2/22/2021 3/2/2021 $0.06 10/16/2020 10/26/2020 11/27/2020 $0.06 8/5/2020 8/17/2020 8/28/2020 $0.06 3/17/2020 5/7/2020 5/27/2020 $0.06 2/5/2020 2/18/2020 2/28/2020 $0.06 11/5/2019 11/15/2019 11/29
Slide 20: BC Partners Credit Platform
BC Partners Credit Platform BC PARTNERS CREDIT: A FULL CREDIT CYCLE INVESTMENT PLATFORM 2017 18 17 c. $4.2bn1 FOUNDED PLATFORM INVESTMENT PROFESSIONALS AVG. YEARS OF EXPERIENCE OF IN AUM ACROSS SENIOR INVESTMENT TEAM CREDIT PLATFORM Yield: $3.3bn in AUM Opportunistic: $950m in AUM ▪ Direct lending f
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