Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — Portman Ridge Finance — Q3 2024 Earnings Presentation
18 slides from Bcp Investment's earnings presentation, Nov 12, 2024
Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation November 12, 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: Third Quarter Highlights
Third Quarter Highlights Third Quarter 2024 Highlights ▪ Total investment income for the quarter ended September 30, 2024, was $15.2 million, of which $12.7 million was attributable to interest income, inclusive of payment-in-kind income, from the Debt Securities Portfolio. This compares to total in
Slide 4: Financial Highlights
Financial Highlights ($ in thousands, except per share amounts) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Interest from investments in debt excluding accretion $13,174 $13,196 $12,088 $11,589 $11,434 Purchase discount accounting 238 67 73 112 25 PIK Investment Income 2,421 2,081 2,006 2,201 1,552 CLO
Slide 5: Rising Rates
Rising Rates ▪ As of September 30, 2024, substantially all of our floating rate assets were on SOFR contract. ▪ If all floating rate assets as of 9/30/24 were reset to current 3-month benchmark rates 4.55%, we would expect to experience an incremental reduction in quarterly income of ~$164k. (1) (1)
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 $0.1 million. 6
Slide 7: Core Earning Analysis
Core Earning Analysis ($ in ‘000s except per share) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Interest Income: Non-controlled/non-affiliated investments 13,283 12,760 12,621 11,913 11,357 Non-controlled affiliated investments 631 622 95 312 356 Total interest income 13,914 13,382 12,716 12,225 11,713
Slide 8: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in ‘000s) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 NAV, Beginning of Period $215,013 $214,755 $213,518 $210,607 $196,429 (1) Net realized gains (losses) from investment transactions (1,636) (15,574) (2,057) (6,922) (11,419) (1) Net change in unrealized appreciation (dep
Slide 9: Current Portfolio Profile
(1) Current Portfolio Profile Diversified Portfolio of Assets Diversification by Borrower(2) 6.0% Top 5 Borrowers, 5.1% 21.4% 85 Debt + Equity Portfolio Investee Companies 3.5% 3.4% $2.7mm / 1% Average Debt Position Size 3.4% Remainder U.S Centric Investments: Nearly 100% US-Based Companies 36.0% Fo
Slide 10: Portfolio Trends
(1)(2) Portfolio Trends ($ in ‘000s) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 P o rt f o lio S o urc ing ( a t F a ir V a lue ) : B C P artners $ 366,509 $ 357,645 $ 365,041 $ 348,856 $ 339,747 Legacy KCA P $ 24,719 $ 26,274 $ 23,865 $ 23,333 $ 20,788 Legacy OHA I $ 6,289 $ 1,188 $0 $0 $0 Legacy GA R
Slide 11: Credit Quality
Credit Quality ▪ As of September 30, 2024, nine of the Company’s debt investments were on non-accrual status and represented 1.6% and 4.5% of the Company’s investment portfolio at fair value and amortized cost, respectively ($ in ‘000s) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Investments Credit Qual
Slide 12: Portfolio Composition
(1) Portfolio Composition Investment Portfolio ($ in ‘000s) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 First Lien Debt $357,451 $336,599 $345,978 $320,815 $316,444 Second Lien Debt 49,825 41,254 38,925 36,386 28,885 Subordinated Debt 1298 1,224 1211 1,693 1,696 Equity Securities 19,189 20,533 23,428 23
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 September 30, 2024 December 31, 2023 (Unaudited) (in thousands, except share and per share amounts) ASSETS Investments at fair value: Non-controlled/non-affiliated investments (amortized cost of $391,156 and $426,630, respectively) $ 357,459 $ 398,325 Non-controlled affiliated investme
Slide 16: Income Statement
Income Statement (in thousands, e xce pt share and pe r share amounts) For the Thre e Months Ende d Se pte mbe r 30, For the Nine Months Ende d Se pte mbe r 30, 2024 2023 2024 2023 INVESTMENT INC O ME Interest income: Non-controlled/non-affiliated investments $ 11,357 $ 13,283 $ 35,891 $ 42,915 Non-
Slide 17: Corporate Leverage & Liquidity
Corporate Leverage & Liquidity Cash and Cash Equivalents ▪ Unrestricted cash and cash equivalents totaled $13.7 million as of September 30, 2024 ▪ Restricted cash of $13.0 million as of September 30, 2024 Debt Summary ▪ As of September 30, 2024, par value of outstanding borrowings was $267.5 million
Slide 18: Regular Distribution Information
Regular Distribution Information (1) Date Declared Record Date Payment Date Distribution per Share 11/7/2024 11/19/2024 11/29/2024 $0.69 8/8/2024 8/22/2024 8/30/2024 $0.69 5/8/2024 5/21/2024 5/31/2024 $0.69 3/11/2024 3/20/2024 3/31/2024 $0.69 11/9/2023 11/22/2023 11/31/2023 $0.69 8/9/2023 8/22/2023
Portman Ridge Finance — Q3 2024 Earnings Presentation on 6ix