Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — Portman Ridge Finance — FY2022 Earnings Presentation
19 slides from Bcp Investment's earnings presentation, Mar 10, 2023
Slide 1: Q4 and Full Year 2022 Earnings Presentation
Q4 and Full Year 2022 Earnings Presentation March 10, 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: Full Year Highlights
Full Year Highlights Full Year 2022 Highlights ▪ Total investment income for the year ended 2022 was $69.6 million, of which $55.8 million was attributable to interest income from the Debt Securities Portfolio. This compares to total investment income of $80.1 million for the year ended 2021, of whi
Slide 4: Financial Highlights
Financial Highlights ($ in thousands) 2020 2021 2022 Core investment income $39,107 $63,442 $64,189 Expenses: Management fees 4,579 7,916 8,349 (1) 4,301 7,075 6,126 Performance-based incentive fees Interest and amortization of debt issuance costs 10,284 13,644 17,701 Professional fees 2,836 3,660 3
Slide 5: Rising Rates
Rising Rates ▪ As of December 31, 2022, approximately 67% of our floating rate assets were on LIBOR contract. ▪ Shown below, those contracts have taken a significant amount of time to reset and still remain below the prevailing 3 month LIBOR rate. Blended Contracted LIBOR at Month End 5.50% 4.97% 5.
Slide 6: Limited Repayment Activity
Limited Repayment Activity ▪ Over the last three years, Portman has experienced an average of $1.5mm in income related to repayment / prepayment activity as compared to the current quarter of $0.3mm. Paydown Income by Quarter ($ in 000s) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 Quarterly Average: $
Slide 7: NII Per Share Bridge
NII Per Share Bridge ▪ The below analysis begins with Q4 2022 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) 2020 2021 2022 Interest Income: Non-controlled/non-affiliated investments 24,335 60,236 51,090 Non-controlled affiliated investments 7,416 4,775 3,150 Total interest income 31,751 65,011 54,240 Payment-in-kind income: Non-controlled/non-affiliated
Slide 9: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in ‘000s) 2020 2021 2022 NAV, Beginning of Period $152,199 $216,264 $280,122 (1) Net realized gains (losses) from investment transactions 7,605 (4,258) (31,185) Net change in unrealized appreciation (depreciation) on investments (1) 6,813 (8,443) (17,915) Net Investmen
Slide 10: Current Portfolio Profile
(1) Current Portfolio Profile Diversified Portfolio of Assets Diversification by Borrower(2) 4.0% Top 5 Borrowers, 3.5% 15.9% 119 Debt + Equity Portfolio Investee Companies 3.1% 2.7% 2.6% $3.3mm / 1% Average Debt Position Size U.S Centric Investments: Nearly 100% US-Based Companies Remainder Next 5-
Slide 11: Portfolio Trends
(1)(2) Portfolio Trends ($ in ‘000s) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 P o rt f o lio S o urc ing ( a t F a ir V a lue ) : B C P artners $ 264,642 $ 303,378 $ 336,689 $ 351,940 $ 367,771 Legacy KCA P $ 78,221 $ 68,378 $ 59,646 $ 53,156 $ 52,847 Legacy OHA I $ 16,163 $ 9,894 $ 10,315 $ 9,447 $
Slide 12: Credit Quality
Credit Quality ▪ As of December 31, 2022, four of the Company’s debt investments were on non-accrual status and represented 0.0% and 0.6% of the Company’s investment portfolio at fair value and amortized cost, respectively ($ in ‘000s) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Investments Credit Quali
Slide 13: Portfolio Composition
(1) Portfolio Composition Investment Portfolio ($ in ‘000s) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Senior Secured Loan $364,701 $395,062 $414,920 $415,819 $418,722 Junior Secured Loan 70,549 60,976 59,147 61,535 56,400 Senior Unsecured Bond 43 43 43 43 43 Equity Securities 22,586 22,633 24,805 24,4
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 ▪ We remain in the process of implementing the same strategy with the acquired and fully redeemed HCAP assets but
Slide 15: Appendix
RIDGE Appendix
Slide 16: Balance Sheet
Balance Sheet (in thousands, except share and per share amounts) December 31, 2022 December 31, 2021 ASSETS Investments at fair value: Non-controlled/non-affiliated investments (amortized cost: 2022 - $518,699; 2021 - $479,153) $ 483,698 $ 452,482 Non-controlled affiliated investments (amortized cos
Slide 17: Income Statement
Income Statement (in thousands, except share and per share amounts) December 31, 2022 December 31, 2021 December 31, 2020 INVESTMENT INCOME Interest income: Non-controlled/non-affiliated investments $ 51,090 $ 60,236 $ 24,335 Non-controlled affiliated investments 3,150 4,775 7,416 Total interest inc
Slide 18: Corporate Leverage & Liquidity
Corporate Leverage & Liquidity Cash and Cash Equivalents ▪ Unrestricted cash and cash equivalents totaled $5.1 million as of December 31, 2022 ▪ Restricted cash of $28.0 million as of December 31, 2022 Debt Summary ▪ As of December 31, 2022, par value of outstanding borrowings was $378.2 million; th
Slide 19: Regular Distribution Information
Regular Distribution Information (1) Date Declared Record Date Payment Date Distribution per Share 3/9/2023 3/20/2023 3/31/2023 $0.68 11/8/2022 11/24/2022 12/13/2022 $0.67 8/9/2022 8/16/2022 9/2/2022 $0.63 5/10/2022 5/24/2022 6/7/2022 $0.63 3/10/2022 3/21/2022 3/30/2022 $0.63 11/3/2021 11/15/2021 11