Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — Portman Ridge Finance — Q3 2020 Earnings Presentation
13 slides from Bcp Investment's earnings presentation, Nov 10, 2020
Slide 1: 2020 Q3 Earnings Presentation
2020 Q3 Earnings Presentation November 10, 2020
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: Executive Summary
Executive Summary Current Market Conditions As near-term visibility improved, companies appeared to have a better sense of future business prospects and exhibited more optimism We saw M&A and refinance activity begin to pick up, particularly toward the end of the quarter, which we believe could
Slide 4: Current Portfolio Profile
(1) Current Portfolio Profile Diversified Portfolio of Assets Diversification by Borrower(2) Top 5 5.3% 65 Debt Portfolio Companies and 102 Separate Securities 3.6% Borrowers, 3.6% 19.5% 3.5% $2.1mm / 1.0% Average Position Size 3.5% Remaining Investments, 32.0% U.S Centric Investments: ~99% US-Based
Slide 5: Merger with Garrison Capital Inc.
Merger with Garrison Capital Inc. On June 24, 2020, the Company entered into a merger agreement with Garrison Capital (“Garrison”) for a cash and stock transaction (the “Merger”) The Merger closed on October 28, 2020 with strong support from both stockholder bases; post closing, Portman Ridge an
Slide 6: Financial Highlights
Financial Highlights ($ in ‘000s) Q3 2019* Q4 2019 Q1 2020 Q2 2020 Q3 2020* Total investment income $7,076 $6,705 $7,754 $7,314 $7,787 Management fees 1,026 1,077 1,012 1,008 1,044 Performance-based incentive fees -- -- 102 455 572 Interest and amortization of debt issuance costs 2,281 2,197 2,350 2
Slide 7: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in ‘000s) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 NAV, Beginning of Period $139,178 $132,723 $152,199 $120,370 $120,714 (1) Realized Gains (Losses) from Investments (1,176) (1,326) (1,048) (882) (1,890) (1) Unrealized Gains (Losses) (5,317) (2,649) (30,924) 1,565 7,512
Slide 8: Portfolio Composition
(1) Portfolio Composition Investment Portfolio ($ in ‘000s) Q4 2019 Q1 2020 Q2 2020 Q3 2020 First Lien Debt $87,522 $105,379 $117,265 $114,022 Second Lien Debt 95,188 83,926 78,366 79,851 First Lien Last Out 500 8,050 7,619 7,583 Equity Securities 9,864 8,046 9,538 9,703 CLO Fund Securities 31,968 1
Slide 9: Portfolio Trends
(1) Portfolio Trends ($ in ‘000s) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Portfolio Sourcing (at Fair Value): Sierra Crest Investment Management 104,223 133,315 149,246 148,289 Legacy KCAP 133,686 106,241 100,653 104,023 Legacy OHAI 35,781 30,303 28,757 26,547 Portfolio Summary: Total portfolio, at fair val
Slide 10: Credit Quality
Credit Quality As shown below, the percentage of non-accrual assets (both on a cost and fair value basis) as a percentage of total has been decreasing on a quarter over quarter basis ($ in ‘000s) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Investments on Non-Accrual Status Number of Non-Accrual Investments 7 9
Slide 11: Corporate Leverage & Liquidity
Corporate Leverage & Liquidity Cash and Short-term Investments Unrestricted cash and short-term investments totaled $10.9 million at September 30, 2020 Restricted cash of $4.9 million at September 30, 2020 represents cash held in our revolving credit facility Debt Summary Balanced mix between
Slide 12: Appendix
RIDGE Appendix
Slide 13: 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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