ptmn-10q_20210630.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, 2021

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 4, 2021 was 91,257,044.

 

 

 

 


 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

 

Part I. Financial Information

 

 

 

 

Item 1.

Consolidated Financial Statements

 

 

 

 

 

Consolidated Balance Sheets as of June 30, 2021 (unaudited) and December 31, 2020

5

 

 

 

 

Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2021 and 2020

6

 

 

 

 

Consolidated Statements of Changes in Net Assets (unaudited) for the six months ended June 30, 2021 and 2020

7

 

 

 

 

Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2021 and 2020

8

 

 

 

 

Consolidated Schedules of Investments as of June 30, 2021 (unaudited) and December 31, 2020

9

 

 

 

 

Consolidated Financial Highlights (unaudited) for the six months ended June 30, 2021 and 2020

41

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

42

 

 

 

Item 2.

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

84

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

108

 

 

 

Item 4.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

109

 

 

 

Item 5.

Controls and Procedures

109

 

 

 

 

Part II. Other Information

 

 

 

 

Item 1.

Legal Proceedings

110

 

 

 

Item 1A.

Risk Factors

110

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

114

 

 

 

Item 3.

Defaults Upon Senior Securities

114

 

 

 

Item 4.

Mine Safety Disclosures

114

 

 

 

Item 5.

Other Information

115

 

 

 

Item 6.

Exhibits

115

 

 

 

Signatures

 

117

 

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, Garrison Funding 2018-2 Ltd. (“GF CLO 2018-2”), 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 KCAP Senior Funding I Holdings, LLC, Harvest Equity Holdings, LLC and HCAP ICC, 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, 2020, 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 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;

3


 

 

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, 2020. 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,

2021

 

 

December 31,

2020

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

 

 

 

Debt securities (amortized cost: 2021 - $410,719,636; 2020 - $392,932,411)

 

$

419,647,553

 

 

$

404,860,855

 

CLO Fund Securities managed by non-affiliates (amortized cost: 2021 - $34,561,828; 2020 - $45,727,813)

 

 

17,064,290

 

 

 

19,582,555

 

Equity securities (cost: 2021 - $30,344,541; 2020 - $24,593,639)

 

 

22,386,600

 

 

 

13,944,876

 

Asset Manager Affiliates (cost: 2021 - $17,791,230; 2020 - $17,791,230)

 

 

 

 

 

 

Joint Ventures (cost: 2021 - $66,062,400; 2020 - $54,932,458)

 

 

61,069,876

 

 

 

49,349,163

 

Total Investments at Fair Value, excluding derivatives (cost: 2021 - $559,479,635; 2020 - $535,977,551)

 

 

520,168,319

 

 

 

487,737,449

 

Cash and cash equivalents

 

 

65,655,197

 

 

 

6,990,008

 

Restricted cash

 

 

47,617,658

 

 

 

75,913,411

 

Interest receivable

 

 

3,964,058

 

 

 

2,972,546

 

Receivable for unsettled trades

 

 

7,863,142

 

 

 

25,107,598

 

Due from affiliates

 

 

483,220

 

 

 

357,168

 

Other assets

 

 

3,761,436

 

 

 

1,100,241

 

Total Assets

 

$

649,513,030

 

 

$

600,178,421

 

LIABILITIES

 

 

 

 

 

 

 

 

6.125% Notes Due 2022 (net of offering costs of: 2020 - $1,058,351)

 

$

-

 

 

$

75,667,624

 

2018-2 Secured Notes (net of discount of: 2021-$1,491,277; 2020 - $2,444,512)

 

 

162,371,420

 

 

$

249,418,186

 

4.875% Notes Due 2026 (net of discount of: 2021-$2,374,942; 2020 - $0, net of offering costs of: 2021-$945,249; 2020 - $0)

 

 

104,679,809

 

 

 

 

Great Lakes Portman Ridge Funding LLC Revolving Credit Facility (net of offering costs of: 2021-$914,855; 2020 - $1,097,815)

 

 

68,156,043

 

 

 

48,223,083

 

6.125% Notes Due 2022

 

 

28,750,000

 

 

 

 

Derivative liabilities, net (cost: 2021 - $30,609; 2020 - $30,609)

 

 

1,802,675

 

 

 

1,108,618

 

Payable for unsettled trades

 

 

1,369,754

 

 

 

 

Accounts payable, accrued expenses and other liabilities

 

 

3,689,638

 

 

 

1,788,908

 

Accrued interest payable

 

 

2,146,231

 

 

 

1,089,531

 

Due to affiliates

 

 

1,926,429

 

 

 

1,374,739

 

Management and incentive fees payable

 

 

6,016,720

 

 

 

5,243,869

 

Total Liabilities

 

 

380,908,719

 

 

 

383,914,558

 

COMMITMENTS AND CONTINGENCIES (NOTE 8)

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share, 100,000,000 common shares authorized; 92,670,027 issued, and 91,740,765 outstanding at June 30, 2021, and 76,093,492 issued, and 75,164,230 outstanding at December 31, 2020

 

 

917,408

 

 

 

751,642

 

Capital in excess of par value

 

 

680,857,172

 

 

 

638,459,548

 

Total distributable (loss) earnings

 

 

(413,170,269

)

 

 

(422,947,327

)

Total Stockholders' Equity

 

 

268,604,311

 

 

 

216,263,863

 

Total Liabilities and Stockholders' Equity

 

$

649,513,030

 

 

$

600,178,421

 

NET ASSET VALUE PER COMMON SHARE

 

$

2.93

 

 

$

2.88

 

 

See accompanying notes to unaudited 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,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

Investment Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest from investments in debt securities

 

$

17,258,911

 

 

$

4,813,517

 

 

$

31,345,386

 

 

$

9,393,299

 

 

Payment-in-kind investment income

 

 

744,815

 

 

 

381,528

 

 

 

1,876,413

 

 

 

690,897

 

 

Interest from short-term investments

 

 

 

 

 

-

 

 

 

-

 

 

 

15,279

 

 

Investment income on CLO Fund Securities managed by affiliates

 

 

 

 

 

832,867

 

 

 

-

 

 

 

1,906,361

 

 

Investment income on CLO Fund Securities managed by non-affiliates

 

 

845,387

 

 

 

87,718

 

 

 

1,462,643

 

 

 

204,961

 

 

Investment income - Joint Ventures

 

 

2,530,198

 

 

 

1,000,883

 

 

 

4,569,464

 

 

 

2,578,019

 

 

Capital structuring service fees

 

 

165,841

 

 

 

197,381

 

 

 

595,808

 

 

 

279,285

 

 

Total investment income

 

 

21,545,152

 

 

 

7,313,894

 

 

 

39,849,714

 

 

 

15,068,101

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management fees

 

 

1,914,338

 

 

 

1,008,384

 

 

 

3,706,902

 

 

 

2,020,074

 

 

Performance-based incentive fees

 

 

2,299,858

 

 

 

454,874

 

 

 

4,393,477

 

 

 

556,880

 

 

Interest and amortization of debt issuance costs

 

 

3,526,586

 

 

 

2,394,870

 

 

 

6,907,083

 

 

 

4,744,941

 

 

Professional fees

 

 

695,745

 

 

 

527,317

 

 

 

2,190,173

 

 

 

1,370,946

 

 

Insurance

 

 

199,808

 

 

 

177,154

 

 

 

376,962

 

 

 

300,904

 

 

Administrative services expense

 

 

718,285

 

 

 

430,265

 

 

 

1,331,657

 

 

 

891,265

 

 

Other general and administrative expenses

 

 

479,790

 

 

 

175,998

 

 

 

1,020,203

 

 

 

374,273

 

 

Total expenses

 

 

9,834,410

 

 

 

5,168,862

 

 

 

19,926,457

 

 

 

10,259,283

 

 

Management and performance-based incentive fees waived

 

 

 

 

 

(454,874

)

 

 

 

 

 

(556,880

)

 

Net Expenses

 

 

9,834,410

 

 

 

4,713,988

 

 

 

19,926,457

 

 

 

9,702,403

 

 

Net Investment Income

 

 

11,710,742

 

 

 

2,599,906

 

 

 

19,923,257

 

 

 

5,365,698

 

 

Realized And Unrealized Gains (Losses) On Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized (losses) gains from investment transactions

 

 

(2,355,735

)

 

 

(881,615

)

 

 

(7,441,523

)

 

 

(1,929,762

)

 

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

 

(760,741

)

 

 

2,279,932

 

 

 

(3,000,527

)

 

 

(8,498,305

)

 

Equity securities

 

 

1,341,777

 

 

 

351,925

 

 

 

2,690,821

 

 

 

74,018

 

 

CLO Fund Securities managed by affiliates

 

 

 

 

 

(2,579,187

)

 

 

-

 

 

 

(13,741,461

)

 

CLO Fund Securities managed by non-affiliates

 

 

1,745,569

 

 

 

(283,864

)

 

 

8,647,720

 

 

 

(855,293

)

 

Joint Venture Investments

 

 

(617,515

)

 

 

2,308,479

 

 

 

590,770

 

 

 

(5,800,718

)

 

Derivatives

 

 

(219,712

)

 

 

(512,346

)

 

 

(694,057

)

 

 

(537,983

)

 

Total net change in unrealized appreciation (depreciation)

 

 

1,489,378

 

 

 

1,564,939

 

 

 

8,234,727

 

 

 

(29,359,742

)

 

Net realized and unrealized appreciation (depreciation) on investments

 

 

(866,357

)

 

 

683,324

 

 

 

793,204

 

 

 

(31,289,504

)

 

Realized (losses) gains on extinguishments of Debt

 

 

 

 

 

464

 

 

 

(1,834,963

)

 

 

154,571

 

 

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

 

$

10,844,385

 

 

$

3,283,694

 

 

$

18,881,498

 

 

$

(25,769,235

)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

0.14

 

 

$

0.07

 

 

$

0.24

 

 

$

(0.58

)

 

Diluted:

 

$

0.14

 

 

$

0.07

 

 

$

0.24

 

 

$

(0.58

)

 

Net Investment Income Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

0.15

 

 

$

0.06

 

 

$

0.25

 

 

$

0.12

 

 

Diluted:

 

$

0.15

 

 

$

0.06

 

 

$

0.25

 

 

$

0.12

 

 

Weighted Average Shares of Common Stock Outstanding—Basic

 

 

77,471,692

 

 

 

44,610,714

 

 

 

79,743,607

 

 

 

44,716,953

 

 

Weighted Average Shares of Common Stock Outstanding—Diluted

 

 

77,471,692

 

 

 

44,610,714

 

 

 

79,743,607

 

 

 

44,716,953

 

 

 

See accompanying notes to unaudited consolidated financial statements.

6


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS(1)

(unaudited)

 

 

 

For the Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

Operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

19,923,257

 

 

$

5,365,698

 

Net realized gains (losses) from investment transactions

 

 

(7,441,523

)

 

 

(1,929,762

)

Realized (losses) gains from extinguishments of debt

 

 

(1,834,963

)

 

 

154,571

 

Net change in unrealized (depreciation) appreciation on investments

 

 

8,234,727

 

 

 

(29,359,742

)

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

 

 

18,881,498

 

 

 

(25,769,235

)

 

 

 

 

 

 

 

 

 

Stockholder distributions:

 

 

(9,104,441

)

 

 

(5,373,565

)

 

 

 

 

 

 

 

 

 

Capital share transactions:

 

 

 

 

 

 

 

 

Issuance of common stock for:

 

 

 

 

 

 

 

 

Dividend reinvestment plan

 

 

229,008

 

 

 

65,210

 

Stock repurchases

 

 

(379,904

)

 

 

(407,325

)

Private placement

 

 

4,019,598

 

 

 

 

HCAP purchase (net of offering expenses)

 

 

38,694,689

 

 

 

 

Net increase in net assets resulting from capital share transactions

 

 

42,563,391

 

 

 

(342,115

)

 

 

 

 

 

 

 

 

 

Net assets at beginning of period

 

 

216,263,863

 

 

 

152,198,570

 

Net assets at end of period

 

$

268,604,311

 

 

$

120,713,655

 

Net asset value per common share

 

$

2.93

 

 

$

2.71

 

Common shares outstanding at end of period

 

 

91,740,765

 

 

 

44,495,221

 

 

(1)

Refer to note 9 "Stockholders' Equity" for additional information on changes in components of Stockholders' Equity

See accompanying notes to unaudited consolidated financial statements.

7


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

 

For the Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

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

 

$

18,881,498

 

 

$

(25,769,235

)

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

 

 

 

 

 

 

 

 

Net realized (gains) losses on investment transactions

 

 

7,441,523

 

 

 

1,929,762

 

Net change in unrealized (depreciation) appreciation from investments

 

 

(8,234,727

)

 

 

29,359,742

 

Purchases of investments

 

 

(120,866,659

)

 

 

(85,231,291

)

Proceeds from sales and redemptions of investments

 

 

159,737,677

 

 

 

54,700,182

 

Net accretion of investments

 

 

(17,228,898

)

 

 

(3,391,343

)

Amortization of debt issuance costs

 

 

438,869

 

 

 

467,162

 

Realized gains on extinguishments of debt

 

 

1,834,963

 

 

 

(154,571

)

Net payment-in-kind interest income

 

 

1,381,413

 

 

 

(193,147

)

Cash consideration net of cash acquired from mergers

 

 

13,581,062

 

 

 

 

(Increase) decrease in operating assets:

 

 

 

 

 

 

 

 

Receivable for unsettled trades

 

 

17,244,456

 

 

 

14,917,045

 

Interest and dividends receivable

 

 

(1,422,966

)

 

 

(541,677

)

Due from affiliates

 

 

(126,052

)

 

 

302,787

 

Other assets

 

 

(5,385,102

)

 

 

(529,310

)

Increase (decrease) in operating liabilities:

 

 

 

 

 

 

 

 

Payable for unsettled trades

 

 

1,369,754

 

 

 

7,366,263

 

Accrued interest payable

 

 

1,056,700

 

 

 

795,513

 

Management and incentive fees payable

 

 

772,851

 

 

 

(68,596

)

Due to affiliates

 

 

551,690

 

 

 

(370,252

)

Accounts payable and accrued expenses

 

 

4,945,330

 

 

 

599,525

 

Net cash used in operating activities

 

 

75,973,382

 

 

 

(5,811,441

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Debt issuance costs

 

 

(962,232

)

 

 

(1,342

)

Private placement

 

 

4,019,598

 

 

 

 

Stock repurchase program

 

 

(379,904

)

 

 

(407,325

)

Distributions to stockholders

 

 

(8,875,433

)

 

 

(5,308,355

)

Repurchase of 6.125% Notes Due 2022

 

 

(76,725,975

)

 

 

(513,382

)

Repayment of 2018-2 Secured Notes

 

 

(88,000,000

)

 

 

 

Issuance of 4.875% Notes Due 2026

 

 

105,570,000

 

 

 

 

Borrowings from Revolving Credit Facilities

 

 

19,750,000

 

 

 

47,250,000

 

Repayment of Revolving Credit Facilities

 

 

 

 

 

(28,500,000

)

Net cash provided by financing activities

 

 

(45,603,946

)

 

 

12,519,595

 

CHANGE IN CASH AND RESTRICTED CASH

 

 

30,369,436

 

 

 

6,708,154

 

CASH AND RESTRICTED CASH, BEGINNING OF PERIOD

 

 

82,903,419

 

 

 

5,104,355

 

CASH AND RESTRICTED CASH, END OF PERIOD

 

$

113,272,855

 

 

$

11,812,509

 

Amounts per balance sheet:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

65,655,197

 

 

$

414,159

 

Restricted cash

 

 

47,617,658

 

 

 

11,398,350

 

Total Cash and Restricted cash

 

$

113,272,855

 

 

$

11,812,509

 

Supplemental Information:

 

 

 

 

 

 

 

 

Interest paid during the period

 

$

5,411,514

 

 

$

3,471,476

 

Dividends paid during the period under the dividend reinvestment plan

 

$

229,008

 

 

$

65,210

 

Supplemental non-cash information:

 

 

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

 

 

Non-cash assets acquired

 

 

 

 

 

 

 

 

Investments, at cost

 

$

53,811,838

 

 

$

 

Interest receivable

 

 

431,454

 

 

 

-

 

Other assets

 

 

2,664,932

 

 

 

-

 

Total non-cash assets purchased

 

$

56,908,224

 

 

$

 

Liabilities assumed

 

 

 

 

 

 

 

 

Debt

 

 

28,750,000

 

 

$

 

Accounts payable and accrued expenses

 

 

1,644,600

 

 

 

-

 

Total liabilities assumed

 

$

30,394,600

 

 

$

 

Issuance of common stock

 

 

37,063,461

 

 

$

 

Deemed capital contribution from affiliates

 

$

2,150,000

 

 

$

 

Transaction costs

 

 

881,226

 

 

$

 

 

See accompanying notes to unaudited consolidated financial statements.

8


PORTMAN RIDGE FINANCE CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

As of June 30, 2021

(unaudited)

Debt Securities Portfolio

 

Portfolio Company /

Principal Business

 

Investment

Interest Rate¹ / Maturity15

 

Initial

Acquisition

Date

 

Principal

 

 

Amortized

Cost

 

 

Fair Value2

 

1A Smart Start LLC

     Consumer goods: Non-durable

(8)(14)

Senior Secured Loan — First Lien Term Loan

5.8% Cash, 3 Month Libor (1.00%) + 4.75%; Libor Floor 1.00% , Due 8/27

 

10/28/2020

 

$

2,084,276

 

 

$

1,847,113

 

 

$

2,089,487

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Capital Holdings LLC

     Banking, Finance, Insurance & Real Estate

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

Senior Secured Loan — Delayed Draw Term Loan

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

 

2/14/2020

 

 

2,852,556

 

 

 

2,852,556

 

 

 

2,885,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advantage Capital Holdings LLC

     Banking, Finance, Insurance & Real Estate

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

Senior Secured Loan — Term Loan

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

 

2/14/2020

 

 

2,520,115

 

 

 

2,520,115

 

 

 

2,549,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AIS Holdco, LLC

     Banking, Finance, Insurance & Real Estate

(8)(13)(14)

Senior Secured Loan — First Lien Term Loan A

5.2% Cash, 3 Month Libor (0.19%) + 5.00% , Due 8/25

 

10/28/2020

 

 

2,528,268

 

 

 

2,081,132

 

 

 

2,468,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMCP Pet Holdings, Inc.

     Beverage, Food and Tobacco

(8)(13)(14)(21)(23)

Senior Secured Loan — Delayed Draw Term Loan

1.0% Cash, Due 10/26

 

12/9/2020

 

 

-

 

 

 

(18,142

)

 

 

(5,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMCP Pet Holdings, Inc.

     Beverage, Food and Tobacco

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

Senior Secured Loan — First Lien Term Loan

7.3% Cash, 6 Month Libor (1.00%) + 6.25%; Libor Floor 1.00% , Due 10/26

 

12/9/2020

 

 

4,975,000

 

 

 

4,884,746

 

 

 

4,950,125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMCP Pet Holdings, Inc.

     Beverage, Food and Tobacco

(8)(13)(21)(23)

Senior Secured Loan — Revolving Loan

7.3% Cash, Due 10/26

 

12/9/2020

 

 

250,000

 

 

 

231,746

 

 

 

245,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Analogic Corporation

     Electronics

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

Senior Secured Loan — Revolver

0.5% Cash, Due 6/23

 

10/28/2020

 

 

-

 

 

 

-

 

 

 

(7,078

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Analogic Corporation

     Electronics

(8)(13)(14)

Senior Secured Loan — First Lien Term Loan A

6.3% Cash, 1 Month Libor (1.00%) + 5.25%; Libor Floor 1.00% , Due 6/24

 

10/28/2020

 

 

3,537,852

 

 

 

3,152,028

 

 

 

3,414,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ancile Solutions, INC.

     High Tech Industries

(8)(13)(14)

Senior Secured Loan — First Lien Term Loan

8.0% Cash, 3.0% PIK, 3 Month Libor (1.00%) + 7.00%; Libor Floor 1.00% , Due 6/26

 

6/11/2021

 

 

7,000,000

 

 

 

6,792,300

 

 

 

6,790,000

 

 

9


 

 

Portfolio Company /

Principal Business

 

Investment

Interest Rate¹ / Maturity15

 

Initial

Acquisition

Date

 

Principal

 

 

Amortized

Cost

 

 

Fair Value2

 

Anthem Sports & Entertainment Inc.

     Media: Broadcasting & Subscription

(8)(13)(14)

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

 

3/31/2021

 

 

857,613

 

 

 

756,720

 

 

 

827,682

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anthem Sports & Entertainment Inc.

     Media: Broadcasting & Subscription

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

Senior Secured Loan — Term Loan

10.5% Cash, 3 Month Libor (1.00%) + 9.50%; Libor Floor 1.00% , Due 9/24

 

9/9/2019

 

 

3,299,408

 

 

 

3,221,862

 

 

 

3,184,259

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anthem Sports & Entertainment Inc.

     Media: Broadcasting & Subscription

(8)(13)(21)(23)

Senior Secured Loan — Revolving Loan

10.5% Cash, 3 Month Libor (1.00%) + 9.50%; Libor Floor 1.00% , Due 9/24

 

9/9/2019

 

 

208,333

 

 

 

181,711

 

 

 

170,525