ptmn-10q_20200930.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 September 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 November 5, 2020 was 44,169,060.

 

 

 

 


TABLE OF CONTENTS

 

 

 

Page

 

 

 

 

Part I. Financial Information

 

 

 

 

Item 1.

Consolidated Financial Statements

 

 

 

 

 

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

5

 

 

 

 

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

6

 

 

 

 

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

7

 

 

 

 

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

8

 

 

 

 

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

9

 

 

 

 

Consolidated Financial Highlights (unaudited) for the nine months ended September 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

67

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

93

 

 

 

Item 4.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

95

 

 

 

Item 5.

Controls and Procedures

95

 

 

 

 

Part II. Other Information

 

 

 

 

Item 1.

Legal Proceedings

96

 

 

 

Item 1A.

Risk Factors

96

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

99

 

 

 

Item 3.

Defaults Upon Senior Securities

99

 

 

 

Item 4.

Mine Safety Disclosures

99

 

 

 

Item 5.

Other Information

99

 

 

 

Item 6.

Exhibits

99

 

 

 

Signatures

 

101

 

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

 

 

 

September 30,

2020

 

 

December 31,

2019

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

 

 

 

Short-term investments (cost: 2020 - $10,219,782; 2019 - $4,207,107)

 

$

10,219,782

 

 

$

4,207,107

 

Debt securities (amortized cost: 2020 - $216,394,990; 2019 - $194,686,364)

 

 

204,566,258

 

 

 

186,802,908

 

CLO Fund Securities managed by affiliates (amortized cost: 2020 - $44,741,934; 2019 - $45,099,076)

 

 

17,458,715

 

 

 

29,984,047

 

CLO Fund Securities managed by non-affiliates (amortized cost: 2020 - $1,360,499; 2019 - $1,519,641)

 

 

1,333,150

 

 

 

1,984,155

 

Equity securities (cost: 2020 - $21,588,325; 2019 - $22,160,993)

 

 

9,703,027

 

 

 

9,864,419

 

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

 

 

 

 

 

 

Joint Ventures (cost: 2020 - $54,992,546; 2019 - $48,594,539)

 

 

46,831,611

 

 

 

45,087,967

 

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

 

 

(1,033,048

)

 

 

(33,437

)

Total Investments at Fair Value (cost: 2020 - $367,119,915; 2019 - $334,089,559)

 

 

289,079,495

 

 

 

277,897,166

 

Cash

 

 

677,438

 

 

 

136,864

 

Restricted cash

 

 

4,907,105

 

 

 

4,967,491

 

Interest receivable

 

 

1,927,149

 

 

 

1,367,447

 

Receivable for unsettled trades

 

 

1,847,146

 

 

 

24,420,045

 

Due from affiliates

 

 

187,344

 

 

 

473,100

 

Other assets

 

 

1,508,694

 

 

 

1,112,150

 

Total Assets

 

$

300,134,371

 

 

$

310,374,263

 

LIABILITIES

 

 

 

 

 

 

 

 

6.125% Notes Due 2022 (net of offering costs of: 2020-$1,207,830; 2019 - $1,651,946)

 

$

75,518,145

 

 

$

75,755,253

 

Great Lakes Portman Ridge Funding LLC Revolving Credit Facility  (net of offering costs of: 2020-$1,189,295; 2019 - $1,462,364)

 

 

93,131,603

 

 

 

78,108,535

 

Payable for unsettled trades

 

 

 

 

 

 

Accounts payable and accrued expenses

 

 

1,574,838

 

 

 

1,386,981

 

Accrued interest payable

 

 

752,270

 

 

 

136,486

 

Due to affiliates

 

 

1,596,260

 

 

 

1,711,793

 

Management and incentive fees payable

 

 

1,615,157

 

 

 

1,076,645

 

Total Liabilities

 

 

174,188,273

 

 

 

158,175,693

 

COMMITMENTS AND CONTINGENCIES (NOTE 9)

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share, 100,000,000 common shares authorized; 45,098,322 issued, and 44,169,060 outstanding at September 30, 2020, and 45,024,535 issued, and 44,829,676 outstanding at December 31, 2019

 

 

441,691

 

 

 

448,297

 

Capital in excess of par value

 

 

450,601,352

 

 

 

451,353,379

 

Total distributable (loss) earnings

 

 

(325,096,945

)

 

 

(299,603,106

)

Total Stockholders' Equity

 

 

125,946,098

 

 

 

152,198,570

 

Total Liabilities and Stockholders' Equity

 

$

300,134,371

 

 

$

310,374,263

 

NET ASSET VALUE PER COMMON SHARE

 

$

2.85

 

 

$

3.40

 

 

See accompanying notes to consolidated financial statements.

5


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

For the Three Months

Ended September 30,

 

 

For the Nine Months

Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Investment Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest from investments in debt securities

 

$

4,517,268

 

 

$

3,882,096

 

 

$

13,910,567

 

 

$

10,650,753

 

Payment-in-kind investment income

 

 

434,446

 

 

 

311,936

 

 

 

1,125,343

 

 

 

325,478

 

Interest from short-term investments

 

 

 

 

 

13,952

 

 

 

15,279

 

 

 

66,065

 

Investment income on CLO Fund Securities managed by affiliates

 

 

587,239

 

 

 

1,454,086

 

 

 

2,493,600

 

 

 

3,193,840

 

Investment income on CLO Fund Securities managed by non-affiliates

 

 

42,341

 

 

 

107,889

 

 

 

247,302

 

 

 

1,894,737

 

Investment income - Joint Ventures

 

 

2,182,466

 

 

 

1,300,590

 

 

 

4,760,485

 

 

 

3,542,257

 

Capital structuring service fees

 

 

23,602

 

 

 

5,647

 

 

 

302,887

 

 

 

116,645

 

Total investment income

 

 

7,787,362

 

 

 

7,076,196

 

 

 

22,855,463

 

 

 

19,789,775

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management fees

 

 

1,043,645

 

 

 

1,026,000

 

 

 

3,063,719

 

 

 

2,052,100

 

Performance-based incentive fees

 

 

571,846

 

 

 

 

 

 

1,128,726

 

 

 

 

Interest and amortization of debt issuance costs

 

 

2,239,911

 

 

 

2,280,627

 

 

 

6,984,852

 

 

 

6,063,984

 

Compensation

 

 

 

 

 

 

 

 

 

 

 

3,688,578

 

Professional fees

 

 

439,503

 

 

 

644,485

 

 

 

1,810,450

 

 

 

2,827,131

 

Insurance

 

 

177,154

 

 

 

129,157

 

 

 

478,058

 

 

 

577,257

 

Administrative services expense

 

 

470,435

 

 

 

438,502

 

 

 

1,361,700

 

 

 

848,102

 

Other general and administrative expenses

 

 

147,818

 

 

 

314,992

 

 

 

522,091

 

 

 

1,374,606

 

Lease termination costs

 

 

 

 

 

 

 

 

 

 

 

1,431,030

 

Total expenses

 

 

5,090,312

 

 

 

4,833,763

 

 

 

15,349,596

 

 

 

18,862,788

 

Management and performance-based incentive fees waived

 

 

 

 

 

 

 

 

(556,880

)

 

 

 

Net Expenses

 

 

5,090,312

 

 

 

4,833,763

 

 

 

14,792,716

 

 

 

18,862,788

 

Net Investment Income (Loss)

 

 

2,697,050

 

 

 

2,242,433

 

 

 

8,062,747

 

 

 

926,987

 

Realized And Unrealized Gains (Losses) On Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized (losses) gains from investment transactions

 

 

(1,890,090

)

 

 

(1,176,073

)

 

 

(3,819,851

)

 

 

(16,796,465

)

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

 

4,553,027

 

 

 

(621,192

)

 

 

(3,945,277

)

 

 

3,584,578

 

Equity securities

 

 

337,258

 

 

 

(909,990

)

 

 

411,276

 

 

 

(5,809,402

)

CLO Fund Securities managed by affiliates

 

 

1,573,272

 

 

 

(2,715,673

)

 

 

(12,168,189

)

 

 

(3,330,808

)

CLO Fund Securities managed by non-affiliates

 

 

363,430

 

 

 

55,174

 

 

 

(491,863

)

 

 

2,531,746

 

Joint Venture Investments

 

 

1,146,355

 

 

 

(1,104,502

)

 

 

(4,654,363

)

 

 

2,897,649

 

Derivatives

 

 

(461,629

)

 

 

(20,959

)

 

 

(999,612

)

 

 

(20,959

)

Total net change in unrealized appreciation (depreciation)

 

 

7,511,713

 

 

 

(5,317,142

)

 

 

(21,848,028

)

 

 

(147,196

)

Net realized and unrealized appreciation (depreciation) on investments

 

 

5,621,623

 

 

 

(6,493,215

)

 

 

(25,667,879

)

 

 

(16,943,661

)

Realized gains on extinguishments of Debt

 

 

 

 

 

 

 

 

154,571

 

 

 

 

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

 

$

8,318,673

 

 

$

(4,250,782

)

 

$

(17,450,561

)

 

$

(16,016,674

)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

0.19

 

 

$

(0.11

)

 

$

(0.39

)

 

$

(0.43

)

Diluted:

 

$

0.19

 

 

$

(0.11

)

 

$

(0.39

)

 

$

(0.43

)

Net Investment Income Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

0.06

 

 

$

0.06

 

 

$

0.18

 

 

$

0.02

 

Diluted:

 

$

0.06

 

 

$

0.06

 

 

$

0.18

 

 

$

0.02

 

Weighted Average Shares of Common Stock Outstanding—Basic

 

 

44,417,783

 

 

 

37,361,746

 

 

 

44,616,502

 

 

 

37,348,835

 

Weighted Average Shares of Common Stock Outstanding—Diluted

 

 

44,417,783

 

 

 

37,361,746

 

 

 

44,616,502

 

 

 

37,348,835

 

 

See accompanying notes to consolidated financial statements.

6


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS(1)

(unaudited)

 

 

 

For the Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

Operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

8,062,747

 

 

$

926,987

 

Net realized (losses) gains from investment transactions

 

 

(3,819,851

)

 

 

(16,796,465

)

Realized gains from extinguishments of debt

 

 

154,571

 

 

 

 

Net change in unrealized (depreciation) appreciation on investments

 

 

(21,848,028

)

 

 

(147,196

)

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

 

 

(17,450,561

)

 

 

(16,016,674

)

 

 

 

 

 

 

 

 

 

Stockholder distributions:

 

 

(8,043,278

)

 

 

(9,707,773

)

 

 

 

 

 

 

 

 

 

Capital share transactions:

 

 

 

 

 

 

 

 

Issuance of common stock for:

 

 

 

 

 

 

 

 

Dividend reinvestment plan

 

 

104,238

 

 

 

167,512

 

Stock repurchase

 

 

(862,871

)

 

 

 

Stock based compensation

 

 

 

 

 

258,936

 

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

 

 

(758,633

)

 

 

426,448

 

Net assets at beginning of period

 

 

152,198,570

 

 

 

158,021,011

 

Net assets at end of period

 

$

125,946,098

 

 

$

132,723,012

 

Net asset value per common share

 

$

2.85

 

 

$

3.55

 

Common shares outstanding at end of period

 

 

44,169,060

 

 

 

37,371,912

 

 

(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 Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

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

 

$

(17,450,561

)

 

$

(16,016,674

)

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

 

 

3,819,851

 

 

 

16,796,465

 

Net change in unrealized appreciation (depreciation) from investments

 

 

21,848,028

 

 

 

147,196

 

Purchases of investments

 

 

(107,085,081

)

 

 

(106,626,968

)

Proceeds from sales and redemptions of investments

 

 

75,298,827

 

 

 

80,926,508

 

Net accretion of investments

 

 

(4,683,861

)

 

 

(5,001,145

)

Amortization of debt issuance costs

 

 

705,256

 

 

 

787,011

 

Realized gains on extinguishments of debt

 

 

(154,571

)

 

 

 

Net amortization of operating lease

 

 

 

 

 

(143,016

)

Operating lease impairment

 

 

 

 

 

1,431,030

 

Net payment-in-kind interest income

 

 

(380,093

)

 

 

(325,478

)

Stock-based compensation

 

 

 

 

 

258,936

 

(Increase) decrease in operating assets:

 

 

 

 

 

 

 

 

Receivable for unsettled trades

 

 

22,572,899

 

 

 

-

 

Interest and dividends receivable

 

 

(559,702

)

 

 

94,598

 

Due from affiliates

 

 

285,756

 

 

 

336,685

 

Other assets

 

 

(396,544

)

 

 

(419,565

)

Increase (decrease) in operating liabilities:

 

 

 

 

 

 

 

 

Payable for unsettled trades

 

 

 

 

 

8,284,443

 

Accrued interest payable

 

 

615,784

 

 

 

131,782

 

Management and incentive fees payable

 

 

538,512

 

 

 

1,026,000

 

Due to affiliates

 

 

(115,533

)

 

 

365,338

 

Accounts payable and accrued expenses

 

 

187,857

 

 

 

(1,777,859

)

Net cash used in operating activities

 

 

(4,953,176

)

 

 

(19,724,713

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Debt issuance costs

 

 

(1,342

)

 

 

(372,150

)

Stock repurchase program

 

 

(862,871

)

 

 

 

Distributions to stockholders

 

 

(7,939,040

)

 

 

(9,540,261

)

Repurchase of 6.125% Notes Due 2022

 

 

(513,383

)

 

 

 

Borrowings from Revolving Credit Facilities

 

 

47,250,000

 

 

 

85,000,000

 

Repayment of  Revolving Credit Facilities

 

 

(32,500,000

)

 

 

(63,335,599

)

Net cash provided by financing activities

 

 

5,433,364

 

 

 

11,751,990

 

CHANGE IN CASH AND RESTRICTED CASH

 

 

480,188

 

 

 

(7,972,722

)

CASH AND RESTRICTED CASH, BEGINNING OF PERIOD

 

 

5,104,355

 

 

 

9,324,466

 

CASH AND RESTRICTED CASH, END OF PERIOD

 

$

5,584,543

 

 

$

1,351,744

 

Amounts per balance sheet:

 

 

 

 

 

 

 

 

Cash

 

$

677,438

 

 

$

341,166

 

Restricted cash

 

 

4,907,105

 

 

 

1,010,578

 

Total Cash and Restricted cash

 

$

5,584,543

 

 

$

1,351,744

 

Supplemental Information:

 

 

 

 

 

 

 

 

Interest paid during the period

 

$

5,663,812

 

 

$

4,772,071

 

Dividends paid during the period under the dividend reinvestment plan

 

$

104,238

 

 

$

167,512

 

 

See accompanying notes to consolidated financial statements.

8


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of September 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.

                    7905 Cochran Road Suite 300 Glenwillow, OH 44139     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

 

$

1,400,030

 

 

$

951,271

 

 

$

2,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Capital Holdings LLC

     415 Bedford Road - Suite 102 Pleasantville NY, 10570     Banking, Finance, Insurance & Real Estate

(8)(13)(14)(22)

Senior Secured Loan — Delayed Draw Term Loan

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

 

2/14/2020

 

 

-

 

 

 

-

 

 

 

2,395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Capital Holdings LLC

     415 Bedford Road - Suite 102 Pleasantville NY, 10570          Banking, Finance, Insurance & Real Estate

(8)(13)(14)(22)

Senior Secured Loan — Term Loan

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

 

2/14/2020

 

 

2,422,152

 

 

 

2,422,152

 

 

 

2,425,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Capital Holdings LLC

      415 Bedford Road - Suite 102 Pleasantville NY, 10570     Banking, Finance, Insurance & Real Estate

(8)(13)(14)(22)

Senior Secured Loan — Delayed Draw Term Loan

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

 

2/14/2020

 

 

934,610

 

 

 

934,610

 

 

 

935,825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Akumin Corp.

      8300 W. Sunrise Boulevard Plantation, FL, 33322     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

 

 

2,236,734

 

 

 

2,197,355

 

 

 

2,141,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allied Universal Holdco LLC

      161 Washington St, Suite 600, Conshohocken, PA 19428     Services: Business

(8)(14)(22)

Senior Secured Loan — Initial Term Loan

4.4% Cash, 1 Month Libor (0.15%) + 4.25% , Due 7/26

 

3/23/2020

 

 

5,169,539

 

 

 

4,296,005

 

 

 

5,123,841

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anthem Sports & Entertainment Inc.

      8269 E. 23rd Ave Denver, CO 80238

     Media: Broadcasting & Subscription

(8)(13)(14)(22)

Senior Secured Loan — Revolving Loan

4.3% Cash, 2.8% PIK, 3 Month Libor (1.00%) + 3.35%; Libor Floor 1.00% , Due 9/24

 

9/9/2019

 

 

416,667

 

 

 

383,812

 

 

 

376,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anthem Sports & Entertainment Inc.

      8269 E. 23rd Ave Denver, CO 80238

     Media: Broadcasting & Subscription

(8)(13)(14)(22)

Senior Secured Loan — Term Loan

9.1% Cash, 2.8% PIK, 3 Month Libor (1.00%) + 8.15%; Libor Floor 1.00% , Due 9/24

 

9/9/2019

 

 

3,820,769

 

 

 

3,708,349

 

 

 

3,679,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BMC Acquisition, Inc. (aka BenefitMall)

      12404 Park Central Drive, Suite 400S Dallas, TX, 75251

      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

 

 

2,917,500

 

 

 

2,916,459

 

 

 

2,815,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C.P. Converters Acquisition, Inc.

      15 Grumbacher Rd, York, PA 17406     Chemicals, Plastics & Rubber

(8)(13)(14)

Senior Secured Loan — Seventh Amendment Acquisition Loan

8.8% Cash, Prime (3.25%) + 5.50%; Libor Floor 1.00% , Due 6/23

 

6/26/2020

 

 

2,962,500

 

 

 

2,895,047

 

 

 

2,935,838

 

 

9


 

Portfolio Company /

Principal Business

 

Investment

Interest Rate¹ / Maturity15

 

Initial

Acquisition

Date

 

Principal

 

 

Amortized

Cost

 

 

Fair Value2

 

Care Hospice Acquisition, Inc.

     500 Faulconer Drive, Suite 200 Charlottesville, VA 22903

      Healthcare & Pharmaceuticals

(8)(13) (14)

Senior Secured Loan — Term Loan

6.3% Cash, 1 Month Libor (1.00%) + 5.25%; Libor Floor 1.00% , Due 4/22

 

4/17/2020

 

 

4,974,969

 

 

 

4,936,679

 

 

 

4,981,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carestream Health, Inc.

     150 Verona Street, Rochester, NY 14608     Healthcare & Pharmaceuticals

(8)(13) (14)

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

5.5% Cash, 8.0% PIK, 6 Month Libor (1.00%) + 4.50%; Libor Floor 1.00% , Due 8/23

 

5/8/2020

 

 

1,596,869

 

 

 

1,405,008

 

 

 

1,328,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Child Development Schools, Inc.

     6053 Veterans Pkwy, Bldg 300, Columbus, GA 31909     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

 

 

4,314,719

 

 

 

4,308,990

 

 

 

4,193,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coinamatic Canada Inc. (fka 8433143 Canada Limited )

     301 Matheson Blvd West, Mississauga, ON, L5R 3G3, Canada

      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

 

 

 

461,244

 

 

 

452,528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colibri Group, LLC

     McKissock, LLC 218 Liberty Street, Warren, PA 16365     Services: Business

(8)(13)(14)(20)(22)

Senior Secured Loan — Last out DDTL

9.1% Cash, 3 Month Libor (1.00%) + 8.05%; Libor Floor 1.00% , Due 5/25

 

3/31/2020

 

 

932,983

 

 

 

926,675

 

 

 

923,933

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colibri Group, LLC

     McKissock, LLC 218 Liberty Street, Warren, PA 16365     Services: Business

(8)(13)(14)(20)(21)

Senior Secured Loan — Last Out Term Loan

9.1% Cash, 3 Month Libor (1.00%) + 8.05%; Libor Floor 1.00% , Due 5/25

 

3/31/2020

 

 

6,033,990

 

 

 

5,993,197

 

 

 

5,975,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colibri Group, LLC

     McKissock, LLC 218 Liberty Street, Warren, PA 16365     Services: Business

(8)(13)(14)(20)(22)

Senior Secured Loan — Last Out Second Amendment TL

9.1% Cash, 3 Month Libor (1.00%) + 8.05%; Libor Floor 1.00% , Due 5/25

 

3/31/2020

 

 

690,407

 

 

 

685,740

 

 

 

683,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CSM Bakery Solutions Limited (fka CSM Bakery Supplies Limited)

     2711 Centerville Road, Suite 400, Wilmington, DE 19808     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

 

 

 

1,245,521

 

 

 

1,182,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CSM Bakery Solutions Limited (fka CSM Bakery Supplies Limited)

     2711 Centerville Road, Suite 400, Wilmington, DE 19808     Beverage, Food and Tobacco

(8)(14)

Junior Secured Loan — Term Loan (Second Lien)

11.0% Cash, 3 Month Libor (1.00%) + 10.00%; Libor Floor 1.00% , Due 2/22