10-Q 1 ptmn_10-q_q2_22_non-xbrl.htm 10-Q 10-Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 814-00735

Portman Ridge Finance Corporation

(Exact name of Registrant as specified in its charter)

 

 

Delaware

 

20-5951150

(State or other jurisdiction of

Incorporation or organization)

 

(I.R.S. Employer

Identification Number)

650 Madison Avenue, 23rd Floor

New York, New York 10022

(Address of principal executive offices)

(212) 891-2880

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.01 per share

 

PTMN

 

The NASDAQ Global Select Market

 

 

 

 

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No

 

The number of outstanding shares of common stock of the registrant as of August 8, 2022 was 9,599,856.

 

 


 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

 

Part I. Financial Information

 

 

 

 

Item 1.

Consolidated Financial Statements

 

 

 

 

 

Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021

4

 

 

 

 

Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2022 and 2021

5

 

 

 

 

Consolidated Statements of Changes in Net Assets (unaudited) for the six months ended June 30, 2022 and 2021

6

 

 

 

 

Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2022 and 2021

7

 

 

 

 

Consolidated Schedules of Investments (unaudited) as of June 30, 2022 and December 31, 2021

8

 

 

 

 

Consolidated Financial Highlights (unaudited) for the six months ended June 30, 2022 and 2021

20

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

21

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

47

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

60

 

 

 

Item 4.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

61

 

 

 

Item 5.

Controls and Procedures

61

 

 

 

 

Part II. Other Information

 

 

 

 

Item 1.

Legal Proceedings

62

 

 

 

Item 1A.

Risk Factors

62

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

62

 

 

 

Item 3.

Defaults Upon Senior Securities

63

 

 

 

Item 4.

Mine Safety Disclosures

63

 

 

 

Item 5.

Other Information

63

 

 

 

Item 6.

Exhibits

63

 

 

 

Signatures

 

64

 

NOTE ABOUT REFERENCES TO PORTMAN RIDGE FINANCE CORPORATION

In this Quarterly Report on Form 10-Q, the “Company”, “Portman Ridge”, “we”, “us” and “our” refer to Portman Ridge Finance Corporation and its wholly-owned subsidiaries, unless the context otherwise requires.

NOTE ABOUT FORWARD-LOOKING STATEMENTS

The information contained in this item should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report and in conjunction with the financial statements and notes thereto in the Company’s Form 10-K for the year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission (the “Commission” or the “SEC”). In addition, some of the statements in this report constitute forward-looking statements. The matters discussed in this Quarterly Report, as well as in future oral and written statements by management of Portman Ridge Finance Corporation, that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements relate to future events or our future financial performance. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “outlook, ”believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. Important assumptions include our ability to originate new investments, achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Quarterly Report should not be regarded as a representation by us that our plans or objectives will be achieved. These statements are not

 

 

2


 

guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

our future operating results;
our business prospects and the prospects of our existing and prospective portfolio companies;
the return or impact of current and future investments;
our contractual arrangements and other relationships with third parties;
the dependence of our future success on the general economy and its impact on the industries in which we invest;
the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives;
our expected financings and investments;
our ability to operate as a business development company (“BDC”) under the Investment Company Act of 1940 and a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, including the impact of changes in laws or regulations governing our operations or the operations of our portfolio companies;
the adequacy of our available liquidity, cash resources and working capital;
the timing of cash flows, if any, from the operations of our portfolio companies;
the ability of Sierra Crest Investment Management LLC (the “Adviser”) to locate suitable investments for us to monitor and administer our investments;
the ability of the Adviser to attract and retain highly talented professionals;
actual and potential conflicts of interest with the Adviser and its affiliates;
the effect of legal, tax, and regulatory changes on us and our portfolio companies;
the impact of a protracted decline in the liquidity of credit markets on our business;
the impact of fluctuations in interest rates on our business;
the valuation of our investments in portfolio companies, particularly those having no liquid trading market;
our ability to recover unrealized losses;
market conditions and our ability to access additional capital;
the continued duration and effects of the COVID-19 pandemic on us and our portfolio companies;
an economic downturn, including as a result of the impact of the COVID-19 pandemic, could have a material adverse effect on our portfolio companies’ results of operations and financial condition, which could lead to a loss on some or all of our investments in such portfolio companies and have a material adverse effect on our results of operations and financial condition; and
the timing, form and amount of any dividend distributions.

For a more detailed discussion of factors that could cause our actual results to differ from forward-looking statements contained in this Quarterly Report, please see the discussion in Part II, “Item 1A. Risk Factors” of this Quarterly Report, and in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. You should not place undue reliance on these forward-looking statements. The forward-looking statements made in this Quarterly Report relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date this Quarterly Report is filed with the SEC.

 

 

3


 

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

 

 

 

June 30, 2022

 

 

December 31,
2021

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

 

Non-controlled/non-affiliated investments (amortized cost: 2022 - $506,773; 2021 - $479,153)

 

$

485,800

 

 

$

452,482

 

Non-controlled affiliated investments (amortized cost: 2022 - $72,114; 2021 - $74,082)

 

 

70,962

 

 

 

74,142

 

Controlled affiliated investments (cost: 2022 - $58,161; 2021 - $52,130)

 

 

24,719

 

 

 

23,361

 

Total Investments at Fair Value (cost: 2022 - $637,048; 2021 - $605,365)

 

 

581,481

 

 

 

549,985

 

Cash and cash equivalents

 

 

22,039

 

 

 

28,919

 

Restricted cash

 

 

21,991

 

 

 

39,421

 

Interest receivable

 

 

2,829

 

 

 

5,514

 

Receivable for unsettled trades

 

 

4,779

 

 

 

20,193

 

Due from affiliates

 

 

693

 

 

 

507

 

Other assets

 

 

18,997

 

 

 

3,762

 

Total Assets

 

$

652,809

 

 

$

648,301

 

LIABILITIES

 

 

 

 

 

 

2018-2 Secured Notes (net of discount of: 2022 - $1,314; 2021 - $1,403)

 

 

162,549

 

 

 

162,460

 

4.875% Notes Due 2026 (net of discount of: 2022 - $1,933; 2021 - $2,157; net of deferred financing costs of: 2022 - $918; 2021 - $951)

 

 

105,149

 

 

 

104,892

 

Great Lakes Portman Ridge Funding LLC Revolving Credit Facility (net of deferred financing costs of: 2022 - $1,244; 2021 - $732)

 

 

91,827

 

 

 

79,839

 

Derivative liabilities (cost: 2021 - $31)

 

 

-

 

 

 

2,412

 

Payable for unsettled trades

 

 

20,293

 

 

 

5,397

 

Accounts payable, accrued expenses and other liabilities

 

 

4,723

 

 

 

4,819

 

Accrued interest payable

 

 

2,452

 

 

 

2,020

 

Due to affiliates

 

 

891

 

 

 

1,799

 

Management and incentive fees payable

 

 

3,259

 

 

 

4,541

 

Total Liabilities

 

 

391,143

 

 

 

368,179

 

COMMITMENTS AND CONTINGENCIES (NOTE 8)

 

 

 

 

 

 

NET ASSETS

 

 

 

 

 

 

Common stock, par value $0.01 per share, 20,000,000 common shares authorized; 9,897,776 issued, and 9,599,856 outstanding at June 30, 2022, and 9,867,998 issued, and 9,699,695 outstanding at December 31, 2021

 

 

97

 

 

 

97

 

Capital in excess of par value

 

 

731,189

 

 

 

733,095

 

Total distributable (loss) earnings

 

 

(469,620

)

 

 

(453,070

)

Total Net Assets

 

 

261,666

 

 

 

280,122

 

Total Liabilities and Net Assets

 

$

652,809

 

 

$

648,301

 

NET ASSET VALUE PER COMMON SHARE (1)

 

$

27.26

 

 

$

28.88

 

 

(1)
The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, the common shares and net asset value per common share have been adjusted retroactively to reflect the split for all periods presented.

 

 

See accompanying notes to unaudited consolidated financial statements.

 

4


 

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(Unaudited)

 

 

 

Three Months Ended
June 30,

 

 

For the Six Months Ended June 30,

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

INVESTMENT INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled/non-affiliated investments

 

$

10,649

 

 

$

17,443

 

 

$

23,316

 

 

$

31,913

 

 

Non-controlled affiliated investments

 

 

857

 

 

 

662

 

 

 

1,448

 

 

 

895

 

 

Total interest income

 

 

11,506

 

 

 

18,105

 

 

 

24,764

 

 

 

32,808

 

 

Payment-in-kind income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled/non-affiliated investments

 

 

1,199

 

 

 

720

 

 

 

2,325

 

 

 

1,852

 

 

Non-controlled affiliated investments

 

 

73

 

 

 

24

 

 

 

329

 

 

 

24

 

 

Controlled affiliated investments

 

 

20

 

 

 

-

 

 

 

20

 

 

 

-

 

 

Total payment-in-kind income

 

 

1,292

 

 

 

744

 

 

 

2,674

 

 

 

1,876

 

 

Dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled affiliated investments

 

 

1,005

 

 

 

1,114

 

 

 

1,950

 

 

 

1,927

 

 

Controlled affiliated investments

 

 

1,066

 

 

 

1,416

 

 

 

2,229

 

 

 

2,642

 

 

Total dividend income

 

 

2,071

 

 

 

2,530

 

 

 

4,179

 

 

 

4,569

 

 

Fees and other income

 

 

175

 

 

 

166

 

 

 

371

 

 

 

596

 

 

Total investment income

 

 

15,044

 

 

 

21,545

 

 

 

31,988

 

 

 

39,849

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

Management fees

 

 

2,088

 

 

 

1,914

 

 

 

4,223

 

 

 

3,707

 

 

Performance-based incentive fees

 

 

1,169

 

 

 

2,300

 

 

 

2,847

 

 

 

4,393

 

 

Interest and amortization of debt issuance costs

 

 

3,889

 

 

 

3,527

 

 

 

7,233

 

 

 

6,907

 

 

Professional fees

 

 

879

 

 

 

696

 

 

 

1,724

 

 

 

2,190

 

 

Administrative services expense

 

 

822

 

 

 

718

 

 

 

1,669

 

 

 

1,332

 

 

Other general and administrative expenses

 

 

675

 

 

 

680

 

 

 

862

 

 

 

1,397

 

 

Total expenses

 

 

9,522

 

 

 

9,835

 

 

 

18,558

 

 

 

19,926

 

 

NET INVESTMENT INCOME

 

 

5,522

 

 

 

11,710

 

 

 

13,430

 

 

 

19,923

 

 

REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gains (losses) from investment transactions:

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled/non-affiliated investments

 

 

(14,109

)

 

 

(2,028

)

 

 

(17,779

)

 

 

(7,223

)

 

Non-controlled affiliated investments

 

 

118

 

 

 

(328

)

 

 

330

 

 

 

(219

)

 

Derivatives

 

 

-

 

 

 

-

 

 

 

(2,095

)

 

 

-

 

 

Net realized gain (loss) on investments

 

 

(13,991

)

 

 

(2,356

)

 

 

(19,544

)

 

 

(7,442

)

 

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled/non-affiliated investments

 

 

4,870

 

 

 

(1,430

)

 

 

5,699

 

 

 

4,833

 

 

Non-controlled affiliated investments

 

 

(1,329

)

 

 

1,257

 

 

 

(1,212

)

 

 

1,588

 

 

Controlled affiliated investments

 

 

(3,428

)

 

 

1,883

 

 

 

(4,673

)

 

 

2,508

 

 

Derivatives

 

 

-

 

 

 

(220

)

 

 

2,442

 

 

 

(694

)

 

Net unrealized gain (loss) on investments

 

 

113

 

 

 

1,490

 

 

 

2,256

 

 

 

8,235

 

 

Tax (provision) benefit on realized and unrealized gains (losses) on investments

 

 

(77

)

 

 

-

 

 

 

(517

)

 

 

-

 

 

Net realized and unrealized appreciation (depreciation) on investments, net of taxes

 

 

(13,955

)

 

 

(866

)

 

 

(17,805

)

 

 

793

 

 

Realized gains (losses) on extinguishments of debt

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,835

)

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

 

$

(8,433

)

 

$

10,844

 

 

$

(4,375

)

 

$

18,881

 

 

Net Increase (Decrease) In Net Assets Resulting from Operations per Common Share (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted:

 

$

(0.88

)

 

$

1.40

 

 

$

(0.45

)

 

$

2.37

 

 

Net Investment Income Per Common Share (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted:

 

$

0.57

 

 

$

1.51

 

 

$

1.39

 

 

$

2.50

 

 

Weighted Average Shares of Common Stock Outstanding—Basic and Diluted (1)

 

 

9,634,870

 

 

 

7,747,169

 

 

 

9,666,298

 

 

 

7,974,361

 

 

(1)
The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, the weighted average shares outstanding and per share values have been adjusted retroactively to reflect the split for all periods presented.

 

 

See accompanying notes to unaudited consolidated financial statements.

 

5


 

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS(1)

(in thousands, except share and per share amounts)

(Unaudited)

 

 

For the Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

Operations:

 

 

 

 

 

 

 

Net investment income

 

$

13,430

 

 

$

19,923

 

 

Net realized gains (losses) from investment transactions

 

 

(19,544

)

 

 

(7,442

)

 

Realized gains (losses) from extinguishments of debt

 

 

-

 

 

 

(1,835

)

 

Net change in unrealized appreciation (depreciation) on investments

 

 

2,256

 

 

 

8,235

 

 

Tax (provision) benefit on realized and unrealized gains (losses) on investments

 

 

(517

)

 

 

-

 

 

Net increase (decrease) in net assets resulting from operations

 

 

(4,375

)

 

 

18,881

 

 

 

 

 

 

 

 

 

 

Stockholder distributions:

 

 

 

 

 

 

 

Distributions of ordinary income

 

 

(12,175

)

 

 

(9,104

)

 

Net decrease in net assets resulting from stockholder distributions

 

 

(12,175

)

 

 

(9,104

)

 

 

 

 

 

 

 

 

 

Capital share transactions:

 

 

 

 

 

 

 

Issuance of common stock for:

 

 

 

 

 

 

 

Distribution reinvestment plan

 

 

684

 

 

 

229

 

 

Stock repurchases

 

 

(3,004

)

 

 

(380

)

 

Private placement and other

 

 

414

 

 

 

42,714

 

 

Net increase (decrease) in net assets resulting from capital share transactions

 

 

(1,906

)

 

 

42,563

 

 

 

 

 

 

 

 

 

 

Net assets at beginning of period

 

 

280,122

 

 

 

216,264

 

 

Net assets at end of period

 

$

261,666

 

 

$

268,604

 

 

Net asset value per common share (2)

 

$

27.26

 

 

$

29.28

 

 

Common shares outstanding at end of period (2)

 

 

9,599,856

 

 

 

9,174,077

 

 

(1)
Refer to Note 9 "Stockholders' Equity" for additional information on changes in components of Stockholders' Equity
(2)
The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, the common shares and net asset value per common share have been adjusted retroactively to reflect the split for all periods presented.

 

 

See accompanying notes to unaudited consolidated financial statements.

 

6


 

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except share and per share amounts)

(Unaudited)

 

 

For the Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

(4,375

)

 

$

18,881

 

 

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash (used in) provided by in operations:

 

 

 

 

 

 

 

Net realized (gains) losses on investment transactions

 

 

19,544

 

 

 

7,442

 

 

Net change in unrealized (appreciation) depreciation from investments

 

 

(2,256

)

 

 

(8,235

)

 

Purchases of investments

 

 

(127,470

)

 

 

(120,867

)

 

Proceeds from sales and redemptions of investments

 

 

84,862

 

 

 

159,738

 

 

Net accretion of investments

 

 

(5,913

)

 

 

(17,229

)

 

Amortization of debt issuance costs

 

 

609

 

 

 

439

 

 

Realized (gains) losses on extinguishments of debt

 

 

-

 

 

 

1,835

 

 

Net payment-in-kind income

 

 

(2,674

)

 

 

1,381

 

 

Cash consideration net of cash acquired from mergers

 

 

-

 

 

 

13,581

 

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

(Increase) decrease in receivable for unsettled trades

 

 

15,414

 

 

 

17,244

 

 

(Increase) decrease in interest and dividends receivable

 

 

2,685

 

 

 

(1,423

)

 

(Increase) decrease in due from affiliates

 

 

(186

)

 

 

(126

)

 

(Increase) decrease in other assets

 

 

(15,235

)

 

 

(5,385

)

 

Increase (decrease) in payable for unsettled trades

 

 

14,896

 

 

 

1,370

 

 

Increase (decrease) in accrued interest payable

 

 

432

 

 

 

1,057

 

 

Increase (decrease) in management and incentive fees payable

 

 

(1,282

)

 

 

773

 

 

Increase (decrease) in due to affiliates

 

 

(908

)

 

 

552

 

 

Increase (decrease) in accounts payable and accrued expenses

 

 

(96

)

 

 

4,945

 

 

Net cash (used in) provided by operating activities

 

 

(21,953

)

 

 

75,973

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Debt issuance costs

 

 

(776

)

 

 

(962

)

 

Private placement and other

 

 

414

 

 

 

4,020

 

 

Stock repurchase program

 

 

(3,004

)

 

 

(380

)

 

Distributions to stockholders

 

 

(11,491

)

 

 

(8,875

)

 

Repurchase of 6.125% Notes Due 2022

 

 

-

 

 

 

(76,726

)

 

Repayment of 2018-2 Secured Notes

 

 

-

 

 

 

(88,000

)

 

Issuance of 4.875% Notes Due 2026

 

 

-

 

 

 

105,570

 

 

Borrowings from Revolving Credit Facilities

 

 

12,500

 

 

 

19,750

 

 

Net cash (used in) provided by financing activities

 

 

(2,357

)

 

 

(45,603

)

 

CHANGE IN CASH AND RESTRICTED CASH

 

 

(24,310

)

 

 

30,369

 

 

CASH AND RESTRICTED CASH, BEGINNING OF PERIOD

 

 

68,340

 

 

 

82,903

 

 

CASH AND RESTRICTED CASH, END OF PERIOD

 

$

44,030

 

 

$

113,273

 

 

Amounts per balance sheet:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

22,039

 

 

$

65,655

 

 

Restricted cash

 

 

21,991

 

 

 

47,618

 

 

Total Cash and Restricted cash

 

$

44,030

 

 

$

113,273

 

 

Supplemental Information and non-cash activities:

 

 

 

 

 

 

 

Cash paid for interest during the period

 

$

2,848

 

 

$

5,412

 

 

Reinvestment of distributions

 

$

684

 

 

$

229

 

 

 

See accompanying notes to unaudited consolidated financial statements.

 

7


 

PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of June 30, 2022

(in thousands, except share and per share amounts)

(Unaudited)

Debt Securities Portfolio

Portfolio Company14

Investment

Industry

Interest Rate

Reference Rate and Spread1

Floor

Maturity

Initial Acquisition Date

Par/ Shares

 

Cost

 

Fair Value2

 

Footnote Refs

Senior Secured Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accordion Partners LLC

Term Loan

Finance

7.7% Cash

L+5.50%

1.00%

9/24/27

9/24/21

 

9,723

 

 

9,596

 

 

9,687

 

(7)(12)(13)

Accordion Partners LLC

Delayed Draw Term Loan

Finance

1.0% Cash

 

1.00%

9/24/27

9/24/21

 

-

 

 

(18

)

 

(9

)

(7)(12)(13)(20)

Accordion Partners LLC

Revolver

Finance

7.3% Cash

L+5.50%

1.00%

9/24/27

9/24/21

 

2,750

 

 

2,675

 

 

2,732

 

(7)(12)(20)

Accurate Background, LLC

Term Loan

Services: Business

7.0% Cash

L+6.00%

1.00%

3/26/27

10/20/21

 

2,977

 

 

2,764

 

 

2,895

 

(7)(12)(13)

Advantage Capital Holdings LLC

Term Loan

Banking, Finance, Insurance & Real Estate

5.0% Cash + 8.0% PIK

 

 

4/14/27

4/14/22

 

13,347

 

 

13,347

 

 

13,046

 

(7)(12)(13)

AIS Holdco, LLC

First Lien Term Loan A

Banking, Finance, Insurance & Real Estate

6.2% Cash

L+5.00%

 

8/15/25

8/15/18

 

2,339

 

 

2,026

 

 

2,323

 

(7)(12)(13)

AMCP Pet Holdings, Inc.

First Lien Term Loan

Beverage, Food and Tobacco

8.5% Cash

L+6.25%

1.00%

10/6/26

12/9/20

 

4,925

 

 

4,853

 

 

4,827

 

(7)(12)(13)

AMCP Pet Holdings, Inc.

Revolving Loan

Beverage, Food and Tobacco

8.2% Cash

L+6.25%

1.00%

10/6/26

12/9/20

 

975

 

 

960

 

 

955

 

(7)(12)(20)

American Academy Holdings, LLC

First Lien Term Loan

Services: Consumer

7.0% Cash + 6.3% PIK

L+4.75%

1.00%

1/1/25

3/1/22

 

2,929

 

 

2,889

 

 

2,875

 

(7)(12)(13)

American Academy Holdings, LLC

Term Loan Second Lien

Services: Consumer

14.5% PIK

 

 

3/1/28

3/1/22

 

4,769

 

 

4,641

 

 

4,013

 

(7)(12)

American Academy Holdings, LLC

Delayed Draw Term Loan

Services: Consumer

6.0% Cash + 6.3% PIK

L+4.75%

1.00%

1/1/25

3/1/22

 

575

 

 

570

 

 

564

 

(7)(12)(13)

Analogic Corporation

First Lien Term Loan A

Electronics

6.5% Cash

L+5.25%

1.00%

6/22/24

6/22/18

 

3,502

 

 

3,248

 

 

3,323

 

(7)(12)(13)

Analogic Corporation

Revolver

Electronics

6.5% Cash

L+5.25%

1.00%

6/22/23

6/22/18

 

116

 

 

116

 

 

105

 

(7)(12)(13)(20)

Ancile Solutions, Inc.

First Lien Term Loan

High Tech Industries

8.7% Cash + 3.0% PIK

L+7.00%

1.00%

6/11/26

6/11/21

 

6,666

 

 

6,462

 

 

6,599

 

(7)(12)(13)

Anthem Sports & Entertainment Inc.

Term Loan

Media: Broadcasting & Subscription

9.0% Cash + 2.3% PIK

L+6.75%

 

11/15/26

11/15/21

 

11,832