Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — Portman Ridge Finance — Q3 2023 Earnings Presentation
19 slides from Bcp Investment's earnings presentation, Nov 9, 2023
Slide 1: 2023 Q3 Earnings Presentation
2023 Q3 Earnings Presentation November 9, 2023
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: Q3'23 Highlights
Q3’23 Highlights Third Quarter 2023 Highlights ▪ Total investment income for the third quarter of 2023 was $18.6 million, a decrease of $0.4 million as compared to $19.0 million for the third quarter of 2022 and a decrease of $1.0 million as compared to $19.6 million for the second quarter of 2023.
Slide 4: Financial Highlights
Financial Highlights ($ in thousands) Q1 2023 Q2 2023 Q3 2023 Interest from investments in debt excluding accretion $14,105 $14,156 $13,174 Purchase discount accounting 1042 427 238 PIK Investment Income 1,600 966 2,421 CLO Income 548 829 502 JV Income 2,459 2,329 2,073 Service Fees 573 919 166 Inve
Slide 5: Rising Rates
Rising Rates ▪ As of September 30, 2023, approximately 98% of our floating rate assets were on SOFR contract. ▪ If all floating rate assets as of 9/30 were reset to current 3 month benchmark rates (5.64% for LIBOR and 5.38% for SOFR), we would expect to generate an incremental ~$75k of quarterly inc
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 $0.4 million. Paydown Income by Quarter ($ 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 Q3 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) Q1 2023 Q2 2023 Q3 2023 Interest Income: Non-controlled/non-affiliated investments 14,846 14,786 13,283 Non-controlled affiliated investments 849 626 631 Total interest income 15,695 15,412 13,914 Payment-in-kind income: Non-controlled/non-affiliat
Slide 9: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in ‘000s) Q1 2023 Q2 2023 Q3 2023 NAV, Beginning of Period $232,123 $225,106 $215,013 Net Investment Income 8,529 7,915 7,166 Net realized gains (losses) from investment transactions (3,085) (6,471) (1,636) Net change in unrealized appreciation (depreciation) on invest
Slide 10: Current Portfolio Profile
(1) Current Portfolio Profile Diversified Portfolio of Assets Diversification by Borrower(2) 5.1% Top 5 Borrowers, 4.2% 18.5% 101 Debt + Equity Portfolio Investee Companies 3.4% 2.9% $3.3mm / 1% Average Debt Position Size 2.9% Remainder U.S Centric Investments: Nearly 100% US-Based Companies 42.1% N
Slide 11: Portfolio Trends
(1)(2) Portfolio Trends ($ in ‘000s) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 P o rt f o lio S o urc ing ( a t F a ir V a lue ) : B C P artners $ 351,940 $ 367,771 $ 360,061 $ 357,971 $ 366,509 Legacy KCA P $ 53,156 $ 52,847 $ 44,061 $ 30,718 $ 24,719 Legacy OHA I $ 9,447 $ 9,179 $ 6,943 $ 6,715 $ 6,
Slide 12: Credit Quality
Credit Quality ▪ As of September 30, 2023, eight of the Company’s debt investments were on non-accrual status and represented 1.6% and 3.6% of the Company’s investment portfolio at fair value and amortized cost, respectively ($ in ‘000s) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Investments Credit Qua
Slide 13: Portfolio Composition
(1) Portfolio Composition Investment Portfolio ($ in ‘000s) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Senior Secured Loan $415,819 $418,722 $392,022 $376,539 $360,994 Junior Secured Loan 61,535 56,400 50,795 37,962 47,537 Senior Unsecured Bond 43 43 43 43 43 Equity Securities 24,487 21,905 15,320 20,0
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 $66,297 $325,607 $316,452 $60,550 75% of $57,827 83% of $55,490 Portfolio Portfolio FMV at FMV at 9
Slide 15: Appendix
RIDGE Appendix
Slide 16: Balance Sheet
Balance Sheet September 30, 2023 December 31, (Unaudited) 2022 (in thousands, except share and per share amounts) ASSETS Investments at fair value: Non-controlled/non-affiliated investments (amortized cost: 2023 - $454,095; 2022 - $518,699) $ 414,778 $ 483,698 Non-controlled affiliated investments (
Slide 17: Income Statement
Income Statement (in thousands, except share and per share amounts) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 INVESTMENT INCOME Interest income: Non-controlled/non-affiliated investments $ 13,283 $ 13,727 $ 42,915 $ 37,043 Non-controlled aff
Slide 18: Corporate Leverage & Liquidity
Corporate Leverage & Liquidity Cash and Cash Equivalents ▪ Unrestricted cash and cash equivalents totaled $14.9 million as of September 30, 2023 ▪ Restricted cash of $18.8 million as of September 30, 2023 Debt Summary ▪ As of September 30, 2023, par value of outstanding borrowings was $321.5 million
Slide 19: Regular Distribution Information
Regular Distribution Information (1) Date Declared Record Date Payment Date Distribution per Share 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 12/13/2022 $0.67 8/10/2022 8/16/2022
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