ptmn-10q_20200630.htm

 

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, 2020

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

6.125% Notes due 2022

 

KCAPL

 

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 13(a) 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 3, 2020 was 44,495,221.

 

 

 

 


TABLE OF CONTENTS

 

 

 

Page

 

 

 

 

Part I. Financial Information

 

 

 

 

Item 1.

Consolidated Financial Statements

 

 

 

 

 

Consolidated Balance Sheets as of June 30, 2020 (unaudited) and December 31, 2019

5

 

 

 

 

Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2020 and 2019

6

 

 

 

 

Consolidated Statements of Changes in Net Assets (unaudited) for the six months ended June 30, 2020 and 2019

7

 

 

 

 

Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2020 and 2019

8

 

 

 

 

Consolidated Schedules of Investments as of June 30, 2020 (unaudited) and December 31, 2019

9

 

 

 

 

Consolidated Financial Highlights (unaudited) for the six months ended June 30, 2020 and 2019

28

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

29

 

 

 

Item 2.

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

66

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

90

 

 

 

Item 4.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

92

 

 

 

Item 5.

Controls and Procedures

92

 

 

 

 

Part II. Other Information

 

 

 

 

Item 1.

Legal Proceedings

93

 

 

 

Item 1A.

Risk Factors

93

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

94

 

 

 

Item 3.

Defaults Upon Senior Securities

95

 

 

 

Item 4.

Mine Safety Disclosures

95

 

 

 

Item 5.

Other Information

95

 

 

 

Item 6.

Exhibits

95

 

 

 

Signatures

 

97

 

2


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, Great Lakes KCAP Funding I LLC, Great Lakes Portman Ridge Funding, LLC, OHA Investment Sub, LLC, OHA Asset Holdings II, LP, Kohlberg Capital Funding I LLC, KCAP Senior Funding I, LLC and KCAP Senior Funding I Holdings, LLC, 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, 2019, 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 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;

 

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;

3


 

our ability to recover unrealized losses;

 

market conditions and our ability to access additional capital;

 

the 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, 2019. 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.

4


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED BALANCE SHEETS

 

 

 

June 30,

2020

 

 

December 31,

2019

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

 

 

 

Short-term investments (cost: 2020 - $2,067,817; 2019 - $4,207,107)

 

$

2,067,817

 

 

$

4,207,107

 

Debt securities (amortized cost: 2020 - $225,253,456; 2019 - $194,686,364)

 

 

208,871,696

 

 

 

186,802,908

 

CLO Fund Securities managed by affiliates (amortized cost: 2020 - $44,659,024; 2019 - $45,099,076)

 

 

15,802,533

 

 

 

29,984,047

 

CLO Fund Securities managed by non-affiliates (amortized cost: 2020 - $1,479,854; 2019 - $1,519,641)

 

 

1,089,075

 

 

 

1,984,155

 

Equity securities (cost: 2020 - $21,760,483; 2019 - $22,160,993)

 

 

9,537,926

 

 

 

9,864,419

 

Asset Manager Affiliates (cost: 2020 - $17,791,230; 2019 - $17,791,230)

 

 

 

 

 

 

Joint Ventures (cost: 2020 - $53,232,923; 2019 - $48,594,539)

 

 

43,925,633

 

 

 

45,087,967

 

Derivatives (cost: 2020 - $30,609; 2019 - $30,609)

 

 

(571,419

)

 

 

(33,437

)

Total Investments at Fair Value (cost: 2020 - $366,275,396; 2019 - $334,089,559)

 

 

280,723,261

 

 

 

277,897,166

 

Cash

 

 

414,159

 

 

 

136,864

 

Restricted cash

 

 

11,398,350

 

 

 

4,967,491

 

Interest receivable

 

 

1,909,124

 

 

 

1,367,447

 

Receivable for unsettled trades

 

 

9,503,000

 

 

 

24,420,045

 

Due from affiliates

 

 

170,313

 

 

 

473,100

 

Other assets

 

 

1,641,460

 

 

 

1,112,150

 

Total Assets

 

$

305,759,667

 

 

$

310,374,263

 

LIABILITIES

 

 

 

 

 

 

 

 

6.125% Notes Due 2022 (net of offering costs of: 2020-$1,354,444; 2019 - $1,651,946)

 

$

75,371,531

 

 

$

75,755,253

 

Great Lakes Portman Ridge Funding LLC Revolving Credit Facility (net of offering costs of: 2020-$1,280,775; 2019 - $1,462,364)

 

 

97,040,123

 

 

 

78,108,535

 

Payable for unsettled trades

 

 

7,366,263

 

 

 

 

Accounts payable and accrued expenses

 

 

1,986,506

 

 

 

1,386,981

 

Accrued interest payable

 

 

931,999

 

 

 

136,486

 

Due to affiliates

 

 

1,341,541

 

 

 

1,711,793

 

Management and incentive fees payable

 

 

1,008,049

 

 

 

1,076,645

 

Total Liabilities

 

 

185,046,012

 

 

 

158,175,693

 

COMMITMENTS AND CONTINGENCIES (NOTE 9)

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share, 100,000,000 common shares authorized; 45,065,524 issued, and 44,495,221 outstanding at June 30, 2020, and 45,024,535 issued, and 44,829,676 outstanding at December 31, 2019

 

 

444,952

 

 

 

448,297

 

Capital in excess of par value

 

 

451,014,609

 

 

 

451,353,379

 

Total distributable (loss) earnings

 

 

(330,745,906

)

 

 

(299,603,106

)

Total Stockholders' Equity

 

 

120,713,655

 

 

 

152,198,570

 

Total Liabilities and Stockholders' Equity

 

$

305,759,667

 

 

$

310,374,263

 

NET ASSET VALUE PER COMMON SHARE

 

$

2.71

 

 

$

3.40

 

 

See accompanying notes to consolidated financial statements.

5


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

For the Three Months

Ended June 30,

 

 

For the Six Months

Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Investment Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest from investments in debt securities

 

$

4,813,517

 

 

$

3,831,861

 

 

$

9,393,299

 

 

$

6,768,657

 

Payment-in-kind investment income

 

 

381,528

 

 

 

11,520

 

 

 

690,897

 

 

 

13,542

 

Interest from short-term investments

 

 

 

 

 

16,444

 

 

 

15,279

 

 

 

52,113

 

Investment income on CLO Fund Securities managed by affiliates

 

 

832,867

 

 

 

1,607,308

 

 

 

1,906,361

 

 

 

1,739,754

 

Investment income on CLO Fund Securities managed by non-affiliates

 

 

87,718

 

 

 

105,574

 

 

 

204,961

 

 

 

1,786,848

 

Dividends from Asset Manager Affiliates

 

 

 

 

 

 

 

 

 

 

 

 

Investment income - Joint Ventures

 

 

1,000,883

 

 

 

1,291,667

 

 

 

2,578,019

 

 

 

2,241,667

 

Capital structuring service fees

 

 

197,381

 

 

 

49,795

 

 

 

279,285

 

 

 

110,998

 

Total investment income

 

 

7,313,894

 

 

 

6,914,169

 

 

 

15,068,101

 

 

 

12,713,579

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management fees

 

 

1,008,384

 

 

 

1,026,100

 

 

 

2,020,074

 

 

 

1,026,100

 

Performance-based incentive fees

 

 

454,874

 

 

 

 

 

 

556,880

 

 

 

 

Interest and amortization of debt issuance costs

 

 

2,394,870

 

 

 

1,982,431

 

 

 

4,744,941

 

 

 

3,783,357

 

Compensation

 

 

 

 

 

 

 

 

 

 

 

3,688,578

 

Professional fees

 

 

527,317

 

 

 

514,523

 

 

 

1,370,946

 

 

 

2,182,645

 

Insurance

 

 

177,154

 

 

 

359,449

 

 

 

300,904

 

 

 

448,099

 

Administrative services expense

 

 

430,265

 

 

 

409,600

 

 

 

891,265

 

 

 

409,600

 

Other general and administrative expenses

 

 

175,998

 

 

 

311,296

 

 

 

374,273

 

 

 

1,059,615

 

Lease termination costs

 

 

 

 

 

1,431,030

 

 

 

 

 

 

1,431,030

 

Total expenses

 

 

5,168,862

 

 

 

6,034,429

 

 

 

10,259,283

 

 

 

14,029,024

 

Management and performance-based incentive fees waived

 

 

(454,874

)

 

 

 

 

 

(556,880

)

 

 

 

Net Expenses

 

 

4,713,988

 

 

 

6,034,429

 

 

 

9,702,403

 

 

 

14,029,024

 

Net Investment Income (Loss)

 

 

2,599,906

 

 

 

879,740

 

 

 

5,365,698

 

 

 

(1,315,445

)

Realized And Unrealized (Losses) Gains On Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized (losses) gains from investment transactions

 

 

(881,615

)

 

 

(2,270,962

)

 

 

(1,929,762

)

 

 

(15,620,391

)

Net change in unrealized (depreciation) appreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

 

2,279,932

 

 

 

2,305,906

 

 

 

(8,498,305

)

 

 

4,205,770

 

Equity securities

 

 

351,925

 

 

 

151,619

 

 

 

74,018

 

 

 

(4,899,412

)

CLO Fund Securities managed by affiliates

 

 

(2,579,187

)

 

 

(532,566

)

 

 

(13,741,461

)

 

 

(615,135

)

CLO Fund Securities managed by non-affiliates

 

 

(283,864

)

 

 

(66,680

)

 

 

(855,293

)

 

 

2,476,572

 

Asset Manager Affiliates investments

 

 

 

 

 

 

 

 

 

 

 

-

 

Joint Venture Investments

 

 

2,308,479

 

 

 

(1,315,379

)

 

 

(5,800,718

)

 

 

4,002,150

 

Derivatives

 

 

(512,346

)

 

 

 

 

 

(537,983

)

 

 

 

Total net change in unrealized appreciation (depreciation)

 

 

1,564,939

 

 

 

542,900

 

 

 

(29,359,742

)

 

 

5,169,945

 

Net realized and unrealized (depreciation) on investments

 

 

683,324

 

 

 

(1,728,062

)

 

 

(31,289,504

)

 

 

(10,450,446

)

Realized gains on extinguishments of Debt

 

 

464

 

 

 

 

 

 

154,571

 

 

 

 

Net (Decrease) Increase In Stockholders’ Equity Resulting From Operations

 

$

3,283,694

 

 

$

(848,322

)

 

$

(25,769,235

)

 

$

(11,765,891

)

Net (Decrease) Increase In Stockholders' Equity Resulting from Operations per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

0.07

 

 

$

(0.02

)

 

$

(0.58

)

 

$

(0.32

)

Diluted:

 

$

0.07

 

 

$

(0.02

)

 

$

(0.58

)

 

$

(0.32

)

Net Investment (Loss) Income Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

0.06

 

 

$

0.02

 

 

$

0.12

 

 

$

(0.04

)

Diluted:

 

$

0.06

 

 

$

0.02

 

 

$

0.12

 

 

$

(0.04

)

Weighted Average Shares of Common Stock Outstanding—Basic

 

 

44,610,714

 

 

 

37,349,371

 

 

 

44,716,953

 

 

 

37,342,272

 

Weighted Average Shares of Common Stock Outstanding—Diluted

 

 

44,610,714

 

 

 

37,349,371

 

 

 

44,716,953

 

 

 

37,342,272

 

 

See accompanying notes to consolidated financial statements.

6


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS(1)

(unaudited)

 

 

 

For the Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

Operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

5,365,698

 

 

$

(1,315,445

)

Net realized (losses) gains from investment transactions

 

 

(1,929,762

)

 

 

(15,620,391

)

Realized gains from extinguishments of debt

 

 

154,571

 

 

 

 

Net change in unrealized (depreciation) appreciation on investments

 

 

(29,359,742

)

 

 

5,169,945

 

Net (decrease) increase in stockholders’ equity resulting from operations

 

 

(25,769,235

)

 

 

(11,765,891

)

 

 

 

 

 

 

 

 

 

Stockholder distributions:

 

 

(5,373,565

)

 

 

(7,466,254

)

 

 

 

 

 

 

 

 

 

Capital share transactions:

 

 

 

 

 

 

 

 

Issuance of common stock for:

 

 

 

 

 

 

 

 

Dividend reinvestment plan

 

 

65,210

 

 

 

129,789

 

Stock repurchase

 

 

(407,325

)

 

 

 

Stock based compensation

 

 

 

 

 

258,936

 

Net increase in net assets resulting from capital share transactions

 

 

(342,115

)

 

 

388,725

 

Net assets at beginning of period

 

 

152,198,570

 

 

 

158,021,011

 

Net assets at end of period

 

$

120,713,655

 

 

$

139,177,591

 

Net asset value per common share

 

$

2.71

 

 

$

3.73

 

Common shares outstanding at end of period

 

 

44,495,221

 

 

 

37,356,061

 

 

(1)

Refer to note 10 "Stockholders' Equity" for additional information on changes in components of Stockholders' Equity

See accompanying notes to consolidated financial statements.

7


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

 

For the Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net (decrease) increase in stockholders' equity resulting from operations

 

$

(25,769,235

)

 

$

(11,765,891

)

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

 

 

 

 

 

 

 

 

Net realized losses on investment transactions

 

 

1,929,762

 

 

 

15,620,391

 

Net change in (depreciation) unrealized appreciation from investments

 

 

29,359,742

 

 

 

(5,169,945

)

Purchases of investments

 

 

(85,231,291

)

 

 

(59,016,697

)

Proceeds from sales and redemptions of investments

 

 

54,700,182

 

 

 

35,658,265

 

Net accretion of investments

 

 

(3,391,343

)

 

 

(3,392,422

)

Amortization of original issue discount on indebtedness

 

 

 

 

 

 

Amortization of debt issuance costs

 

 

467,162

 

 

 

475,507

 

Realized gains on extinguishments of debt

 

 

(154,571

)

 

 

 

Net amortization of operating lease

 

 

 

 

 

55,174

 

Operating lease impairment

 

 

 

 

 

1,431,030

 

Payment-in-kind interest income

 

 

(193,147

)

 

 

(13,542

)

Stock-based compensation

 

 

 

 

 

258,936

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Increase (decrease) in payable for unsettled trades

 

 

7,366,263

 

 

 

14,826,295

 

(Increase) decrease in receivable for unsettled trades

 

 

14,917,045

 

 

 

(10,457,443

)

Decrease (increase) in interest and dividends receivable

 

 

(541,677

)

 

 

467,574

 

Increase (decrease) in accrued interest payable

 

 

795,513

 

 

 

1,255,066

 

(Increase) decrease in other assets

 

 

(529,310

)

 

 

(587,311

)

Decrease (increase) in due from affiliates

 

 

302,787

 

 

 

311,863

 

Increase (decrease) in management and incentive fees payable

 

 

(68,596

)

 

 

672,951

 

(Decrease) increase in due to affiliates

 

 

(370,252

)

 

 

1,026,100

 

Increase (decrease) in accounts payable and accrued expenses

 

 

599,525

 

 

 

1,429,687

 

Net cash used in operating activities

 

 

(5,811,441

)

 

 

(16,914,412

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Debt issuance costs

 

 

(1,342

)

 

 

(372,150

)

Stock repurchase program

 

 

(407,325

)

 

 

 

Distributions to stockholders

 

 

(5,308,355

)

 

 

(7,336,465

)

Repurchase of 6.125% Notes Due 2022

 

 

(513,383

)

 

 

 

Borrowings from Revolving Credit Facilities

 

 

47,250,000

 

 

 

45,000,000

 

Repayment of  Revolving Credit Facilities

 

 

(28,500,000

)

 

 

(25,997,274

)

Net cash provided by financing activities

 

 

12,519,595

 

 

 

11,294,111

 

CHANGE IN CASH AND RESTRICTED CASH

 

 

6,708,154

 

 

 

(5,620,300

)

CASH AND RESTRICTED CASH, BEGINNING OF PERIOD

 

 

5,104,355

 

 

 

9,324,466

 

CASH AND RESTRICTED CASH, END OF PERIOD

 

$

11,812,509

 

 

$

3,704,166

 

Amounts per balance sheet:

 

 

 

 

 

 

 

 

Cash

 

$

414,159

 

 

$

236,828

 

Restricted cash

 

 

11,398,350

 

 

 

3,467,338

 

Total Cash and Restricted cash

 

$

11,812,509

 

 

$

3,704,166

 

Supplemental Information:

 

 

 

 

 

 

 

 

Interest paid during the period

 

$

3,471,476

 

 

$

1,570,418

 

Dividends paid during the period under the dividend reinvestment plan

 

$

65,210

 

 

$

129,789

 

 

See accompanying notes to consolidated financial statements.

8


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of June 30, 2020

(unaudited)

Debt Securities Portfolio

 

Portfolio Company /

Principal Business

 

Investment

Interest Rate¹ / Maturity15

 

Initial

Acquisition

Date

 

Principal

 

 

Amortized

Cost

 

 

Fair Value2

 

Advanced Lighting Technologies, Inc.

     Consumer goods: Durable

(5)(8)(13)

Junior Secured Loan — Second Lien Notes

8.0% Cash, 10.0% PIK, 3 Month  LIBOR(1.00%) + 7.00%; LIBOR Floor 1.00% , Due 10/23

 

6/13/2012

 

$

1,338,361

 

 

$

951,271

 

 

$

2,811

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Capital Holdings LLC

     Banking, Finance, Insurance & Real Estate

(8)(13)(14)(23)

Senior Secured Loan — Delayed Draw Term Loan

5.0% Cash, 8.0% PIK, Due 1/25

 

2/14/2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Capital Holdings LLC

     Banking, Finance, Insurance & Real Estate

(8)(13)(14)(23)

Senior Secured Loan — Term Loan

5.0% Cash, 8.0% PIK, Due 1/25

 

2/14/2020

 

 

2,327,500

 

 

 

2,327,500

 

 

 

2,327,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Akumin Corp.

     Healthcare & Pharmaceuticals

(8)(13)(14)

Senior Secured Loan — Initial Term B Loan

7.0% Cash, 1 Month  LIBOR(1.00%) + 6.00%; LIBOR Floor 1.00% , Due 5/24

 

5/31/2019

 

 

2,227,500

 

 

 

2,192,652

 

 

 

2,118,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allied Universal Holdco LLC (f/k/a USAGM Holdco, LLC)

     Services: Business

(8)(14)(23)

Senior Secured Loan — Initial Term Loan

4.4% Cash, 1 Month  LIBOR(0.18%) + 4.25% , Due 7/26

 

3/23/2020

 

 

5,182,561

 

 

 

4,268,606

 

 

 

5,045,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anthem Sports & Entertainment Inc.

     Media: Broadcasting & Subscription

(8)(13)(14)(23)

Senior Secured Loan — Revolving Loan

7.8% Cash, 2.8% PIK, 3 Month  LIBOR(1.00%) + 6.75%; LIBOR Floor 1.00% , Due 9/24

 

9/9/2019

 

 

416,667

 

 

 

381,712

 

 

 

362,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anthem Sports & Entertainment Inc.

     Media: Broadcasting & Subscription

(8)(13)(14)(23)

Senior Secured Loan — Term Loan

7.8% Cash, 2.8% PIK, 3 Month  LIBOR(1.00%) + 6.75%; LIBOR Floor 1.00% , Due 9/24

 

9/9/2019

 

 

4,024,614

 

 

 

3,897,706

 

 

 

3,823,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BMC Acquisition, Inc. (aka BenefitMall)

     Banking, Finance, Insurance & Real Estate

(8)(13)(14)

Senior Secured Loan — Initial Term Loan

6.3% Cash, 6 Month  LIBOR(1.00%) + 5.25%; LIBOR Floor 1.00% , Due 12/24

 

1/2/2018

 

 

2,925,000

 

 

 

2,923,894

 

 

 

2,770,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C.P. Converters Acquisition, Inc.

     Chemicals, Plastics & Rubber

(8)(13)(14)

Senior Secured Loan — Seventh Amendment Acquisition Loan

7.5% Cash, 3 Month  LIBOR(1.00%) + 6.50%; LIBOR Floor 1.00% , Due 6/23

 

6/26/2020

 

 

3,000,000

 

 

 

2,925,345

 

 

 

2,925,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Care Hospice Acquisition, Inc.

     Healthcare & Pharmaceuticals

(8)(13)(14)

Senior Secured Loan — Term Loan

5.5% Cash, 3 Month  LIBOR(1.00%) + 4.50%; LIBOR Floor 1.00% , Due 4/22

 

4/17/2020

 

 

4,987,437

 

 

 

4,942,723

 

 

 

4,937,563

 

 

9


 

Portfolio Company /

Principal Business

 

Investment

Interest Rate¹ / Maturity15

 

Initial

Acquisition

Date

 

Principal

 

 

Amortized

Cost

 

 

Fair Value2

 

Carestream Health, Inc.

     Healthcare & Pharmaceuticals

(8)(13)(14)

Junior Secured Loan — 2023 Extended Term Loan (Second Lien)

5.6% Cash, 8.0% PIK, 6 Month  LIBOR(1.07%) + 4.50%; LIBOR Floor 1.00% , Due 8/23

 

5/8/2020

 

 

1,567,317

 

 

 

1,358,170

 

 

 

1,273,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charter Communications Operating, LLC

     Telecommunication

(14)(23)

Senior Secured Bond — 3.70% - 4/1/2051

3.7% Cash, Due 4/51

 

4/14/2020

 

 

254,000

 

 

 

252,025

 

 

 

250,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Child Development Schools, Inc.

     Services: Consumer

(8)(13)(14)

Senior Secured Loan — Term Loan

5.3% Cash, 3 Month  LIBOR(1.00%) + 4.25%; LIBOR Floor 1.00% , Due 5/23

 

6/6/2018

 

 

4,383,212

 

 

 

4,376,836

 

 

 

4,169,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coinamatic Canada Inc. (fka 8433143 Canada Limited )

     Consumer goods: Durable

(3)(13)(14)

Junior Secured Loan — Initial Canadian Term Loan (Second Lien)

8.0% Cash, 1 Month  LIBOR(1.00%) + 7.00%; LIBOR Floor 1.00% , Due 5/23

 

12/18/2019

 

 

521,646

 

 

 

455,413

 

 

 

477,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colibri Group, LLC

     Services: Business

(8)(13)(14)(20)(23)

Senior Secured Loan — Last out DDTL

6.8% Cash, 3 Month  LIBOR(1.00%) + 5.75%; LIBOR Floor 1.00% , Due 5/25

 

3/31/2020

 

 

932,983

 

 

 

926,329

 

 

 

928,318

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colibri Group, LLC

     Services: Business

(8)(13)(14)(20)(23)

Senior Secured Loan — Last Out Term Loan

6.8% Cash, 3 Month  LIBOR(1.00%) + 5.75%; LIBOR Floor 1.00% , Due 5/25

 

3/31/2020

 

 

6,033,990

 

 

 

5,990,954

 

 

 

6,003,820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colibri Group, LLC

     Services: Business

(8)(13)(14)(20)(23)

Senior Secured Loan — Last Out Second Amendment TL

6.8% Cash, 3 Month  LIBOR(1.00%) + 5.75%; LIBOR Floor 1.00% , Due 5/25

 

3/31/2020

 

 

690,407

 

 

 

685,483

 

 

 

686,955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CSM Bakery Solutions Limited (fka CSM Bakery Supplies Limited)

     Beverage, Food and Tobacco

(8)(14)

Senior Secured Loan — Term Loan (First Lien)

7.3% Cash, 3 Month  LIBOR(1.00%) + 6.25%; LIBOR Floor 1.00% , Due 1/22

 

6/11/2020

 

 

1,265,625

 

 

 

1,241,499