Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — Portman Ridge Finance — Q4 2023 Earnings Presentation
19 slides from Bcp Investment's earnings presentation, Mar 14, 2024
Slide 1: Q4 and Full Year 2023 Earnings Presentation
Q4 and Full Year 2023 Earnings Presentation March 14, 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: Full year Highlights
Full year Highlights Full year 2023 Highlights ▪ Total investment income for the year ended 2023 was $76.3 million, of which $63.5 million was attributable to interest income from the Debt Securities Portfolio. This compares to total investment income of $69.6 million for the year ended 2022, of whi
Slide 4: Financial Highlights
Financial Highlights ($ in thousands) 2021 2022 2023 Interes t from i nves tments i n debt excl udi ng a ccretion $42,787 $44,771 $54,631 Purcha s e di s count a ccounting 16,644 5,425 1,774 PIK Inves tment Income 4,345 5,608 7,068 CLO Income 4,754 4,044 1,998 JV Income 9,178 8,591 8,948 Servi ce Fe
Slide 5: Rising Rates
Rising Rates ▪ As of December 31, 2023, all of our floating rate assets were on SOFR contract. ▪ If all floating rate assets as of 12/31 were reset to current 3 month benchmark rates (5.32%), we would expect to generate an incremental ~$86k 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 $1.3 million in income related to repayment / prepayment activity as compared to the current quarter of $0.5 million. Paydown Income by Quarter ($ in 000s) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 Quarterl
Slide 7: NII Per Share Bridge
NII Per Share Bridge ▪ The below analysis begins with Q4 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) 2021 2022 2023 Interest Income: Non-controlled/non-affiliated investments 60,236 51,090 55,675 Non-controlled affiliated investments 4,775 3,150 2,728 Total interest income 65,011 54,240 58,403 Payment-in-kind income: Non-controlled/non-affiliated
Slide 9: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in ‘000s) 2021 2022 2023 NAV, Beginning of Period $216,264 $280,122 $232,123 Net realized gains (losses) from investment transactions (1) (4,258) (31,185) (26,766) (1) Net change in unrealized appreciation (depreciation) on investments (8,443) (17,915) 3,322 Net Invest
Slide 10: Current Portfolio Profile
(1) Current Portfolio Profile Diversified Portfolio of Assets Diversification by Borrower(2) 4.9% Top 5 Borrowers, 4.4% 18.6% 100 Debt + Equity Portfolio Investee Companies 3.1% 3.1% $3.1mm / 1% Average Debt Position Size 3.1% Remainder 39.4% U.S Centric Investments: Nearly 100% US-Based Companies F
Slide 11: Portfolio Trends
(1)(2) Portfolio Trends ($ in ‘000s) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 P o rt f o lio S o urc ing ( a t F a ir V a lue ) : B C P artners $ 367,771 $ 360,061 $ 357,971 $ 366,509 $ 357,645 Legacy KCA P $ 52,847 $ 44,061 $ 30,718 $ 24,719 $ 26,274 Legacy OHA I $ 9,179 $ 6,943 $ 6,715 $ 6,289 $ 1,
Slide 12: Credit Quality
Credit Quality ▪ As of December 31, 2023, seven of the Company’s debt investments were on non-accrual status and represented 1.3% and 3.2% of the Company’s investment portfolio at fair value and amortized cost, respectively ($ in ‘000s) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Investments Credit Qual
Slide 13: Portfolio Composition
(1) Portfolio Composition Investment Portfolio ($ in ‘000s) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Senior Secured Loan $418,722 $392,022 $376,539 $360,994 $340,159 Junior Secured Loan 56,400 50,795 37,962 47,537 38,875 Senior Unsecured Bond 43 43 43 43 43 Equity Securities 21,905 15,320 20,013 19,1
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 OHAI GARS HCAP $66,339 $316,452 $322,807 $60,550 78% of $57,827 83% of $55,409 Portfolio Portfolio FMV at FMV at 9
Slide 15: Appendix
RIDGE Appendix
Slide 16: Balance Sheet
Balance Sheet (in thousands, except share and per share amounts) December 31, 2023 December 31, 2022 ASSETS Investments at fair value: Non-controlled/non-affiliated investments (amortized cost: 2023 - $5426,630; 2022 - $518,699) $ 398,325 $ 483,698 Non-controlled affiliated investments (amortized co
Slide 17: Income Statement
Income Statement (in thousands, except share and per share amounts) December 31, 2023 December 31, 2022 December 31, 2021 INVESTMENT INCOME Interest income: Non-controlled/non-affiliated investments $ 55,675 $ 51,090 $ 60,236 Non-controlled affiliated investments 2,728 3,150 4,775 Total interest inc
Slide 18: Corporate Leverage & Liquidity
Corporate Leverage & Liquidity Cash and Cash Equivalents ▪ Unrestricted cash and cash equivalents totaled $26.9 million as of December 31, 2023 ▪ Restricted cash of $44.7 million as of December 31, 2023 Debt Summary ▪ As of December 31, 2023, par value of outstanding borrowings was $325.7 million; t
Slide 19: Regular Distribution Information
Regular Distribution Information (1) Date Declared Record Date Payment Date Distribution per Share 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 3/31/2023 $0.68 11/8/2022 11/24/2022 1
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