Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — Portman Ridge Finance — Q1 2024 Earnings Presentation
18 slides from Bcp Investment's earnings presentation, May 9, 2024
Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation May 9, 2024
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: First Quarter Highlights
First Quarter Highlights First Quarter 2024 Highlights ▪ Total investment income for the quarter ended March 31, 2024, was $16.5 million, of which 14.2 million was attributable to interest income from the Debt Securities Portfolio. This compares to total investment income of $20.3 million for the qu
Slide 4: Financial Highlights
Financial Highlights ($ in thousands) Q1 2024 Interes t from i nves tments i n debt excl udi ng a ccretion $12,088 Purcha s e di s count a ccounting 73 PIK Inves tment Income 2,006 CLO Income 555 JV Income 1,653 Servi ce Fees 151 Investment Income $16,526 Les s : Purcha s e di s count a ccounting ($
Slide 5: Rising Rates
Rising Rates ▪ As of March 31, 2024, all of our floating rate assets were on SOFR contract. ▪ If all floating rate assets as of 3/31/24 were reset to current 3-month benchmark rates (5.33%), we would expect to generate an incremental ~$48k of quarterly income. Blended Contracted SOFR at Month End 6.
Slide 6: Limited Repayment Activity
Limited Repayment Activity ▪ Over the last three years, Portman has experienced an average of $1.2 million in income related to repayment / prepayment activity as compared to the current quarter of $0.1 million. Paydown Income by Quarter ($ in 000s) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 Qu
Slide 7: Core Earning Analysis
Core Earning Analysis ($ in ‘000s except per share) Q1 2024 Interest Income: Non-controlled/non-affiliated investments 12,621 Non-controlled affiliated investments 95 Total interest income 12,716 Payment-in-kind income: Non-controlled/non-affiliated investments 1,894 Non-controlled affiliated invest
Slide 8: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in ‘000s) Q1 2024 NAV, Beginning of Period $213,518 Net realized gains (losses) from investment transactions (1) (2,057) (1) Net change in unrealized appreciation (depreciation) on investments 71 Net Investment Income 6,226 Net decrease in net assets resulting from sto
Slide 9: Current Portfolio Profile
(1) Current Portfolio Profile Diversified Portfolio of Assets Diversification by Borrower(2) 4.9% Top 5 Borrowers, 4.6% 18.7% 103 Debt + Equity Portfolio Investee Companies 3.1% 3.1% $3.1mm / 1% Average Debt Position Size 3.0% Remainder U.S Centric Investments: Nearly 100% US-Based Companies 41.1% N
Slide 10: Portfolio Trends
(1)(2) Portfolio Trends ($ in ‘000s) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 P o rt f o lio S o urc ing ( a t F a ir V a lue ) : B C P artners $ 360,061 $ 357,971 $ 366,509 $ 357,645 $ 365,041 Legacy KCA P $ 44,061 $ 30,718 $ 24,719 $ 26,274 $ 23,865 Legacy OHA I $ 6,943 $ 6,715 $ 6,289 $ 1,188 $0 L
Slide 11: Credit Quality
Credit Quality ▪ As of March 31, 2024, seven of the Company’s debt investments were on non-accrual status and represented 0.5% and 3.2% of the Company’s investment portfolio at fair value and amortized cost, respectively ($ in ‘000s) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Investments Credit Quality
Slide 12: Portfolio Composition
(1) Portfolio Composition Investment Portfolio ($ in ‘000s) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Senior Secured Loan $392,022 $376,539 $360,994 $340,159 $349,844 Junior Secured Loan 50,795 37,962 47,537 38,875 36,270 Senior Unsecured Bond 43 43 43 43 – Equity Securities 15,320 20,013 19,189 20,53
Slide 13: M&A Value Realization
M&A Value Realization ▪ BC Partners Advisors L.P. (“BCPAL”) is an affiliate of Portman’s investment advisor, Sierra Crest Investment Management (“Sierra Crest”), and employees of BCPAL operate Sierra Crest pursuant to a servicing agreement between the entities. Portman’s track record demonstrates BC
Slide 14: Appendix
RIDGE Appendix
Slide 15: Balance Sheet
Balance Sheet (in thousands, except share and per share amounts) 15
Slide 16: Income Statement
Income Statement (in thousands, except share and per share amounts) 16
Slide 17: Corporate Leverage & Liquidity
Corporate Leverage & Liquidity Cash and Cash Equivalents ▪ Unrestricted cash and cash equivalents totaled $20.8 million as of March 31, 2024 ▪ Restricted cash of $18.8 million as of March 31, 2024 Debt Summary ▪ As of March 31, 2024, par value of outstanding borrowings was $291.7 million; there was
Slide 18: Regular Distribution Information
Regular Distribution Information (1) Date Declared Record Date Payment Date Distribution per Share 5/8/2024 5/21/2024 5/31/2024 $0.69 3/13/2024 3/25/2024 4/2/2024 $0.69 11/8/2023 11/20/2023 11/30/2023 $0.69 8/9/2023 8/22/2023 8/31/2023 $0.69 5/10/2023 5/22/2023 5/31/2023 $0.69 3/9/2023 3/20/2023 3/3
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