Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — Portman Ridge Finance — Q2 2024 Earnings Presentation
18 slides from Bcp Investment's earnings presentation, Aug 9, 2024
Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation August 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: Second Quarter 2024 Highlights
First Quarter Highlights Second Quarter 2024 Highlights ▪ Total investment income for the quarter ended June 30, 2024, was $16.3 million, of which 13.9 million was attributable to interest income, inclusive of payment-in-kind income, from the Debt Securities Portfolio. This compares to total investm
Slide 4: Financial Highlights
Financial Highlights ($ in thousands) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Interest from investments in debt excluding accretion $14,156 $13,174 $13,196 $12,088 $11,589 Purchase discount accounting 427 238 67 73 112 PIK Investment Income 966 2,421 2,081 2,006 2,201 CLO Income 829 502 119 555 524
Slide 5: Rising Rates
Rising Rates ▪ As of June 30, 2024, substantially all of our floating rate assets were on SOFR contract. ▪ If all floating rate assets as of 6/30/24 were reset to current 3-month benchmark rates (5.28%), we would expect to generate an incremental ~$103k of quarterly income. Blended Contracted SOFR a
Slide 6: Limited Repayment Activity
Limited Repayment Activity ▪ Over the last three years, Portman has experienced an average of $1.1 million in income related to repayment / prepayment activity as compared to the current quarter of $0.3 million. Paydown Income by Quarter ($ 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) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Interest Income: Non-controlled/non-affiliated investments 14,786 13,283 12,760 12,621 11,913 Non-controlled affiliated investments 626 631 622 95 312 Total interest income 15,412 13,914 13,382 12,716 12,225
Slide 8: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in ‘000s) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 NAV, Beginning of Period $225,106 $215,013 $214,755 $213,518 $210,607 Net realized gains (losses) from investment transactions (1) (6,471) (1,636) (15,574) (2,057) (6,922) (1) Net change in unrealized appreciation (depr
Slide 9: Current Portfolio Profile
(1) Current Portfolio Profile Diversified Portfolio of Assets Diversification by Borrower(2) 5.8% Top 5 Borrowers, 4.9% 18.7% 75 Debt + Equity Portfolio Investee Companies 3.4% 3.3% $2.6mm / 1% Average Debt Position Size Remainder 3.1% 38.2% U.S Centric Investments: Nearly 100% US-Based Companies Fo
Slide 10: Portfolio Trends
(1)(2) Portfolio Trends ($ in ‘000s) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Portfolio Sourcing (at Fair Value): BC Pa rtners $357,971 $366,509 $357,645 $365,041 $348,856 Lega cy KCAP $30,718 $24,719 $26,274 $23,865 $23,333 Lega cy OHAI $6,715 $6,289 $1,188 $0 $0 Lega cy GARS $91,842 $82,738 $69,488
Slide 11: Credit Quality
Credit Quality ▪ As of June 30, 2024, nine of the Company’s debt investments were on non-accrual status and represented 0.5% and 4.5% of the Company’s investment portfolio at fair value and amortized cost, respectively ($ in ‘000s) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Investments Credit Quality –
Slide 12: Portfolio Composition
(1) Portfolio Composition Investment Portfolio ($ in ‘000s) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 First Lien Debt $368,186 $357,451 $336,599 $345,978 $320,815 Second Lien Debt 44,863 49,825 41,254 38,925 36,386 Subordinated Debt 1,495 1,298 1,224 1,211 1,693 Equity Securities 20,013 19,189 20,533
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) June 30, 2024 December 31, 2023 (Unaudited) ASSETS Investments at fair value: Non-controlled/non-affiliated investments (amortized cost: 2024 - $409,486; 2023 - $426,630) $ 370,359 $ 398,325 Non-controlled affiliated investments (amort
Slide 16: Income Statement
Income Statement For the Six Months Ended (in thousands, except share and per share amounts) For the Three Months Ended June 30, June 30, 2024 2023 2024 2023 INVESTMENT INCOME Interest income: Non-controlled/non-affiliated investments $ 11,913 $ 14,786 $ 24,534 $ 29,632 Non-controlled affiliated inv
Slide 17: Corporate Leverage & Liquidity
Corporate Leverage & Liquidity Cash and Cash Equivalents ▪ Unrestricted cash and cash equivalents totaled $9.8 million as of June 30, 2024 ▪ Restricted cash of $26.8 million as of June 30, 2024 Debt Summary ▪ As of June 30, 2024, par value of outstanding borrowings was $285.1 million; there was $23.
Slide 18: Regular Distribution Information
Regular Distribution Information (1) (1) The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, the distribution per share amounts have been adjusted retroactively to reflect the split for all periods presented. 18
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