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, 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 November 3, 2021 was 9,123,275.
TABLE OF CONTENTS
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Page |
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Part I. Financial Information |
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Item 1. |
Consolidated Financial Statements |
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Consolidated Balance Sheets as of September 30, 2021 (unaudited) and December 31, 2020 |
5 |
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6 |
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7 |
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Consolidated Statements of Cash Flows (unaudited) nine months ended September 30, 2021 and 2020 |
8 |
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Consolidated Schedules of Investments (unaudited) as of September 30, 2021 and December 31, 2020 |
9 |
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Consolidated Financial Highlights (unaudited) for the nine months ended September 30, 2021 and 2020 |
38 |
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39 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
80 |
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Item 3. |
105 |
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Item 4. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
106 |
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Item 5. |
106 |
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Item 1. |
107 |
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Item 1A. |
107 |
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Item 2. |
111 |
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Item 3. |
111 |
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Item 4. |
111 |
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Item 5. |
112 |
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Item 6. |
112 |
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114 |
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:
3
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
|
|
September 30, 2021 |
|
|
December 31, |
|
||
|
|
(Unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Investments at fair value: |
|
|
|
|
|
|
||
Debt securities (amortized cost: 2021 - $450,601,744; 2020 - $392,932,411) |
|
$ |
455,079,876 |
|
|
$ |
404,860,855 |
|
CLO Fund Securities managed by non-affiliates (amortized cost: 2021 - $33,964,238; 2020 - $45,727,813) |
|
|
17,173,634 |
|
|
|
19,582,555 |
|
Equity securities (cost: 2021 - $29,041,687; 2020 - $24,593,639) |
|
|
22,298,759 |
|
|
|
13,944,876 |
|
Asset Manager Affiliates (cost: 2021 - $17,791,230; 2020 - $17,791,230) |
|
|
— |
|
|
|
— |
|
Joint Ventures (cost: 2021 - $70,558,377; 2020 - $54,932,458) |
|
|
67,629,114 |
|
|
|
49,349,163 |
|
Total Investments at Fair Value, excluding derivatives (cost: 2021 - $601,957,277; 2020 - $535,977,551) |
|
|
562,181,383 |
|
|
|
487,737,449 |
|
Cash and cash equivalents |
|
|
28,539,989 |
|
|
|
6,990,008 |
|
Restricted cash |
|
|
21,050,857 |
|
|
|
75,913,411 |
|
Interest receivable |
|
|
4,228,748 |
|
|
|
2,972,546 |
|
Receivable for unsettled trades |
|
|
7,070,394 |
|
|
|
25,107,598 |
|
Due from affiliates |
|
|
464,342 |
|
|
|
357,168 |
|
Other assets |
|
|
3,568,698 |
|
|
|
1,100,241 |
|
Total Assets |
|
$ |
627,104,411 |
|
|
$ |
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 - $1,446,983; 2020 - $2,444,512) |
|
|
162,415,715 |
|
|
|
249,418,186 |
|
4.875% Notes Due 2026 (net of discount of: 2021 - $2,266,656; 2020 - $0, net of offering costs of: 2021 - $948,071; 2020 - $0) |
|
|
104,785,273 |
|
|
|
— |
|
Great Lakes Portman Ridge Funding LLC Revolving Credit Facility (net of offering costs of: 2021 - $823,375; 2020 - $1,097,815) |
|
|
68,247,523 |
|
|
|
48,223,083 |
|
Derivative liabilities (cost: 2021 - $30,609; 2020 - $30,609) |
|
|
1,982,091 |
|
|
|
1,108,618 |
|
Payable for unsettled trades |
|
|
4,903,384 |
|
|
|
— |
|
Accounts payable, accrued expenses and other liabilities |
|
|
3,961,666 |
|
|
|
1,788,908 |
|
Accrued interest payable |
|
|
3,345,558 |
|
|
|
1,089,531 |
|
Due to affiliates |
|
|
760,112 |
|
|
|
1,374,739 |
|
Management and incentive fees payable |
|
|
5,654,814 |
|
|
|
5,243,869 |
|
Total Liabilities |
|
|
356,056,136 |
|
|
|
383,914,558 |
|
COMMITMENTS AND CONTINGENCIES (NOTE 8) |
|
|
|
|
|
|
||
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Common stock, par value $0.01 per share, 20,000,000 common shares authorized; 9,291,578 issued, and 9,123,275 outstanding at September 30, 2021, and 7,609,349 issued, and 7,516,423 outstanding at December 31, |
|
|
91,233 |
|
|
|
75,164 |
|
Capital in excess of par value |
|
|
680,451,474 |
|
|
|
639,136,026 |
|
Total distributable (loss) earnings |
|
|
(409,494,432 |
) |
|
|
(422,947,327 |
) |
Total Stockholders' Equity |
|
|
271,048,275 |
|
|
|
216,263,863 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
627,104,411 |
|
|
$ |
600,178,421 |
|
NET ASSET VALUE PER COMMON SHARE (1) |
|
$ |
29.71 |
|
|
$ |
28.77 |
|
(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.
5
PORTMAN RIDGE FINANCE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
|
For the Three Months Ended September 30, |
|
|
For the Nine Months Ended September 30, |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest from investments in debt securities |
|
$ |
17,391,146 |
|
|
$ |
4,517,268 |
|
|
$ |
48,736,532 |
|
|
$ |
13,910,567 |
|
Payment-in-kind investment income |
|
|
1,296,496 |
|
|
|
434,446 |
|
|
|
3,172,910 |
|
|
|
1,125,343 |
|
Interest from cash and time deposits |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
15,279 |
|
Investment income on CLO Fund Securities managed by affiliates |
|
|
- |
|
|
|
587,239 |
|
|
|
- |
|
|
|
2,493,600 |
|
Investment income on CLO Fund Securities managed by non-affiliates |
|
|
748,449 |
|
|
|
42,341 |
|
|
|
2,211,092 |
|
|
|
247,302 |
|
Investment income - Joint Ventures |
|
|
2,442,703 |
|
|
|
2,182,466 |
|
|
|
7,012,167 |
|
|
|
4,760,485 |
|
Capital structuring service fees |
|
|
1,032,346 |
|
|
|
23,602 |
|
|
|
1,628,155 |
|
|
|
302,887 |
|
Total investment income |
|
|
22,911,140 |
|
|
|
7,787,362 |
|
|
|
62,760,856 |
|
|
|
22,855,463 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Management fees |
|
|
2,064,733 |
|
|
|
1,043,645 |
|
|
|
5,771,636 |
|
|
|
3,063,719 |
|
Performance-based incentive fees |
|
|
1,939,170 |
|
|
|
571,846 |
|
|
|
6,332,646 |
|
|
|
1,128,726 |
|
Interest and amortization of debt issuance costs |
|
|
3,408,445 |
|
|
|
2,239,911 |
|
|
|
10,315,528 |
|
|
|
6,984,852 |
|
Professional fees |
|
|
490,284 |
|
|
|
439,503 |
|
|
|
2,680,458 |
|
|
|
1,810,450 |
|
Insurance |
|
|
198,011 |
|
|
|
177,154 |
|
|
|
574,973 |
|
|
|
478,058 |
|
Administrative services expense |
|
|
760,112 |
|
|
|
470,435 |
|
|
|
2,091,769 |
|
|
|
1,361,700 |
|
Other general and administrative expenses |
|
|
332,534 |
|
|
|
147,818 |
|
|
|
1,352,737 |
|
|
|
522,091 |
|
Total expenses |
|
|
9,193,289 |
|
|
|
5,090,312 |
|
|
|
29,119,747 |
|
|
|
15,349,596 |
|
Management and performance-based incentive fees waived |
|
|
— |
|
|
|
|
|
|
|
|
|
(556,880 |
) |
||
Net Expenses |
|
|
9,193,289 |
|
|
|
5,090,312 |
|
|
|
29,119,747 |
|
|
|
14,792,716 |
|
Net Investment Income |
|
|
13,717,851 |
|
|
|
2,697,050 |
|
|
|
33,641,109 |
|
|
|
8,062,747 |
|
Realized And Unrealized Gains (Losses) On Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized (losses) gains from investment transactions |
|
|
(3,931,280 |
) |
|
|
(1,890,090 |
) |
|
|
(11,372,803 |
) |
|
|
(3,819,851 |
) |
Net change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities |
|
|
(4,447,878 |
) |
|
|
4,553,027 |
|
|
|
(7,448,405 |
) |
|
|
(3,945,277 |
) |
Equity securities |
|
|
1,215,013 |
|
|
|
337,258 |
|
|
|
3,905,834 |
|
|
|
411,276 |
|
CLO Fund Securities managed by affiliates |
|
|
— |
|
|
|
1,573,272 |
|
|
|
— |
|
|
|
(12,168,189 |
) |
CLO Fund Securities managed by non-affiliates |
|
|
706,935 |
|
|
|
363,430 |
|
|
|
9,354,655 |
|
|
|
(491,863 |
) |
Joint Venture Investments |
|
|
2,063,261 |
|
|
|
1,146,355 |
|
|
|
2,654,032 |
|
|
|
(4,654,363 |
) |
Derivatives |
|
|
(179,416 |
) |
|
|
(461,629 |
) |
|
|
(873,473 |
) |
|
|
(999,612 |
) |
Total net change in unrealized appreciation (depreciation) |
|
|
(642,085 |
) |
|
|
7,511,713 |
|
|
|
7,592,643 |
|
|
|
(21,848,028 |
) |
Net realized and unrealized appreciation (depreciation) on investments |
|
|
(4,573,365 |
) |
|
|
5,621,623 |
|
|
|
(3,780,160 |
) |
|
|
(25,667,879 |
) |
Realized (losses) gains on extinguishments of Debt |
|
|
— |
|
|
|
— |
|
|
|
(1,834,963 |
) |
|
|
154,571 |
|
Net Increase (Decrease) In Stockholders’ Equity Resulting From Operations |
|
$ |
9,144,486 |
|
|
$ |
8,318,673 |
|
|
$ |
28,025,986 |
|
|
$ |
(17,450,561 |
) |
Net Increase (Decrease) In Stockholders' Equity Resulting from Operations per Common Share (1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic: |
|
$ |
1.00 |
|
|
$ |
1.87 |
|
|
$ |
3.41 |
|
|
$ |
(3.91 |
) |
Diluted: |
|
$ |
1.00 |
|
|
$ |
1.87 |
|
|
$ |
3.41 |
|
|
$ |
(3.91 |
) |
Net Investment Income Per Common Share (1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic: |
|
$ |
1.50 |
|
|
$ |
0.61 |
|
|
$ |
4.10 |
|
|
$ |
1.81 |
|
Diluted: |
|
$ |
1.50 |
|
|
$ |
0.61 |
|
|
$ |
4.10 |
|
|
$ |
1.81 |
|
Weighted Average Shares of Common Stock Outstanding—Basic (1) |
|
|
9,131,456 |
|
|
|
4,441,778 |
|
|
|
8,213,661 |
|
|
|
4,461,650 |
|
Weighted Average Shares of Common Stock Outstanding—Diluted (1) |
|
|
9,131,456 |
|
|
|
4,441,778 |
|
|
|
8,213,661 |
|
|
|
4,461,650 |
|
(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.
6
PORTMAN RIDGE FINANCE CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS(1)
(unaudited)
|
|
For the Nine Months Ended September 30, |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Operations: |
|
|
|
|
|
|
||
Net investment income |
|
$ |
33,641,109 |
|
|
$ |
8,062,747 |
|
Net realized gains (losses) from investment transactions |
|
|
(11,372,803 |
) |
|
|
(3,819,851 |
) |
Realized (losses) gains from extinguishments of debt |
|
|
(1,834,963 |
) |
|
|
154,571 |
|
Net change in unrealized (depreciation) appreciation on investments |
|
|
7,592,643 |
|
|
|
(21,848,028 |
) |
Net increase (decrease) in stockholders’ equity resulting from operations |
|
|
28,025,986 |
|
|
|
(17,450,561 |
) |
|
|
|
|
|
|
|
||
Stockholder distributions: |
|
|
(14,573,092 |
) |
|
|
(8,043,278 |
) |
|
|
|
|
|
|
|
||
Capital share transactions: |
|
|
|
|
|
|
||
Issuance of common stock for: |
|
|
|
|
|
|
||
Dividend reinvestment plan |
|
|
443,778 |
|
|
|
104,238 |
|
Stock repurchases |
|
|
(1,826,545 |
) |
|
|
(862,871 |
) |
Private placement |
|
|
4,019,598 |
|
|
|
— |
|
HCAP purchase (net of offering expenses) |
|
|
38,694,688 |
|
|
|
— |
|
Net increase in net assets resulting from capital share transactions |
|
|
41,331,519 |
|
|
|
(758,633 |
) |
|
|
|
|
|
|
|
||
Net assets at beginning of period |
|
|
216,263,863 |
|
|
|
152,198,570 |
|
Net assets at end of period |
|
$ |
271,048,276 |
|
|
$ |
125,946,098 |
|
Net asset value per common share (2) |
|
$ |
29.71 |
|
|
$ |
28.51 |
|
Common shares outstanding at end of period (2) |
|
|
9,123,275 |
|
|
|
4,416,906 |
|
(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.
7
PORTMAN RIDGE FINANCE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
|
|
For the Nine Months Ended September 30, |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net increase (decrease) in stockholders' equity resulting from operations |
|
$ |
28,025,986 |
|
|
$ |
(17,450,561 |
) |
Adjustments to reconcile net increase (decrease) in stockholders' equity resulting from operations to net cash (used in) provided by in operations: |
|
|
|
|
|
|
||
Net realized (gains) losses on investment transactions |
|
|
11,372,803 |
|
|
|
3,819,851 |
|
Net change in unrealized (depreciation) appreciation from investments |
|
|
(7,592,643 |
) |
|
|
21,848,028 |
|
Purchases of investments |
|
|
(215,215,715 |
) |
|
|
(107,085,081 |
) |
Proceeds from sales and redemptions of investments |
|
|
219,759,649 |
|
|
|
75,298,827 |
|
Net accretion of investments |
|
|
(25,672,805 |
) |
|
|
(4,683,861 |
) |
Amortization of debt issuance costs |
|
|
728,593 |
|
|
|
705,256 |
|
Realized gains on extinguishments of debt |
|
|
1,834,963 |
|
|
|
(154,571 |
) |
Net payment-in-kind interest income |
|
|
(2,430,410 |
) |
|
|
(380,093 |
) |
Cash consideration net of cash acquired from mergers |
|
|
13,581,062 |
|
|
|
— |
|
(Increase) decrease in operating assets: |
|
|
|
|
|
|
||
Receivable for unsettled trades |
|
|
18,037,204 |
|
|
|
22,572,899 |
|
Interest and dividends receivable |
|
|
(1,256,202 |
) |
|
|
(559,702 |
) |
Due from affiliates |
|
|
(107,174 |
) |
|
|
285,756 |
|
Other assets |
|
|
(2,416,671 |
) |
|
|
(396,544 |
) |
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
||
Payable for unsettled trades |
|
|
4,903,384 |
|
|
|
— |
|
Accrued interest payable |
|
|
2,256,027 |
|
|
|
615,784 |
|
Management and incentive fees payable |
|
|
410,945 |
|
|
|
538,512 |
|
Due to affiliates |
|
|
(614,627 |
) |
|
|
(115,533 |
) |
Accounts payable and accrued expenses |
|
|
2,172,758 |
|
|
|
187,857 |
|
Net cash used in operating activities |
|
|
47,777,127 |
|
|
|
(4,953,176 |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Debt issuance costs |
|
|
(997,464 |
) |
|
|
(1,342 |
) |
Private placement |
|
|
4,019,598 |
|
|
|
— |
|
Stock repurchase program |
|
|
(1,826,545 |
) |
|
|
(862,871 |
) |
Distributions to stockholders |
|
|
(14,129,314 |
) |
|
|
(7,939,040 |
) |
Repurchase of 6.125% Notes Due 2022 |
|
|
(76,725,975 |
) |
|
|
(513,383 |
) |
Repayment of 2018-2 Secured Notes |
|
|
(88,000,000 |
) |
|
|
— |
|
Repayment of 6.125% Notes from HCAP acquisition |
|
|
(28,750,000 |
) |
|
|
— |
|
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 |
|
|
— |
|
|
|
(32,500,000 |
) |
Net cash provided by financing activities |
|
|
(81,089,700 |
) |
|
|
5,433,364 |
|
CHANGE IN CASH AND RESTRICTED CASH |
|
|
(33,312,573 |
) |
|
|
480,189 |
|
CASH AND RESTRICTED CASH, BEGINNING OF PERIOD |
|
|
82,903,419 |
|
|
|
5,104,355 |
|
CASH AND RESTRICTED CASH, END OF PERIOD |
|
$ |
49,590,846 |
|
|
$ |
5,584,544 |
|
Amounts per balance sheet: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
28,539,989 |
|
|
$ |
677,438 |
|
Restricted cash |
|
|
21,050,857 |
|
|
|
4,907,105 |
|
Total Cash and Restricted cash |
|
$ |
49,590,846 |
|
|
$ |
5,584,543 |
|
Supplemental Information: |
|
|
|
|
|
|
||
Interest paid during the period |
|
$ |
7,330,908 |
|
|
$ |
5,663,812 |
|
Dividends paid during the period under the dividend reinvestment plan |
|
$ |
443,778 |
|
|
$ |
104,238 |
|
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 September 30, 2021
(unaudited)
Debt Securities Portfolio
Portfolio Company / |
|
Investment |
|
Initial |
|
Principal |
|
|
Amortized |
|
|
Fair Value2 |
|
|||
1A Smart Start LLC |
(8)(14) |
Senior Secured Loan — First Lien Term Loan |
|
10/28/2020 |
|
$ |
2,079,053 |
|
|
$ |
1,852,203 |
|
|
$ |
2,085,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Accordion Partners LLC |
(8)(13)(14)(23) |
Senior Secured Loan — Delayed Draw Term Loan |
|
9/24/2021 |
|
|
- |
|
|
|
(21,000 |
) |
|
|
(21,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Accordion Partners LLC |
(8)(13)(23) |
Senior Secured Loan — Revolver |
|
9/24/2021 |
|
|
- |
|
|
|
(75,000 |
) |
|
|
(75,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Accordion Partners LLC |
(8)(13)(14) |
Senior Secured Loan — Term Loan |
|
9/24/2021 |
|
|
11,200,000 |
|
|
|
11,032,537 |
|
|
|
11,032,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Advantage Capital Holdings LLC |
(8)(13)(14)(21) |
Senior Secured Loan — Delayed Draw Term Loan |
|
2/14/2020 |
|
|
2,968,560 |
|
|
|
2,968,560 |
|
|
|
2,968,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Advantage Capital Holdings LLC |
(8)(13)(14)(21) |
Senior Secured Loan — Term Loan |
|
2/14/2020 |
|
|
2,622,599 |
|
|
|
2,622,599 |
|
|
|
2,622,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
AIS Holdco, LLC |
(8)(13)(14) |
Senior Secured Loan — First Lien Term Loan A |
|
10/28/2020 |
|
|
2,511,300 |
|
|
|
2,094,296 |
|
|
|
2,446,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
AMCP Pet Holdings, Inc. |
(8)(13)(14)(21)(23) |
Senior Secured Loan — Delayed Draw Term Loan |
|
12/9/2020 |
|
|
- |
|
|
|
(17,275 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
AMCP Pet Holdings, Inc. |
(8)(13)(21)(23) |
Senior Secured Loan — Revolving Loan |
|
12/9/2020 |
|
|
475,000 |
|
|
|
457,619 |
|
|
|
475,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
AMCP Pet Holdings, Inc. |
(8)(13)(14)(21) |
Senior Secured Loan — First Lien Term Loan |
|
12/9/2020 |
|
|
4,962,500 |
|
|
|
4,876,779 |
|
|
|
4,962,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Analogic Corporation |
(8)(13)(14)(23) |
Senior Secured Loan — Revolver |
|
10/28/2020 |
|
|
- |
|
|
|
- |
|
|
|
(7,098 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Analogic Corporation |
(8)(13)(14) |
Senior Secured Loan — First Lien Term Loan A |
|
10/28/2020 |
|
|
3,528,873 |
|
|
|
3,176,599 |
|
|
|
3,405,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Ancile Solutions, Inc. |
(8)(13)(14) |
Senior Secured Loan — First Lien Term Loan |
|
6/11/2021 |
|
|
7,011,083 |
|
|
|
6,815,187 |
|
|
|
6,835,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Anthem Sports & Entertainment Inc. |
(8)(13)(14) |
Senior Secured Loan — Term Loan |
|
3/31/2021 |
|
|
812,912 |
|
|
|
724,261 |
|
|
|
786,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Anthem Sports & Entertainment Inc. |
(8)(13)(21)(23) |
Senior Secured Loan — Revolving Loan |
|
9/9/2019 |
|
|
208,333 |
|
|
|
183,812 |
|
|
|
173,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Anthem Sports & Entertainment Inc. |
(8)(13)(14)(21) |
Senior Secured Loan — Term Loan |
|
9/9/2019 |
|
|
3,112,292 |
|
|
|
3,044,915 |
|
|
|
3,012,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
AP Core Holdings II, LLC |
(8)(14) |
Senior Secured Loan — First Lien Term Loan |
|
7/21/2021 |
||||||||||||