Q1 2025 Earnings Presentation LRFCTM May 9, 2025 Important Information Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements. The matters discussed in this presentation, as well as in future oral and written statements by management of Logan Ridge Finance Corporation ("LRFC", "Logan Ridge" or the "Company"), that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could ca ...

First Quarter 2025 Financial Results [Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) Logan Ridge reported Q1 2025 NII of $0.35 per share and NAV of $29.66 per share, with total investment income decreasing and NAV declining due to unrealized losses Q1 2025 Key Financial Metrics (in millions) | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total Investment Income | $4.6 | $5.4 | | Net Investment Income (NII) | $0.9 | $1.5 | | NII per Share | $0.35 | $0.56 | | Net Asset Value (NAV) per Share | $29.66 | $32.04 | Year-over-Year Comparison (Q1 2025 vs Q1 2024) (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Investment Income | $4.6 | $5.0 | | Total Operating Expenses | $3.7 | $4.1 | | Net Investment Income (NII) | $0.9 | $0.9 | | NII per Share | $0.35 | $0.35 | - The company experienced a net decrease in net assets from operations of **$5.4 million** in Q1 2025, a sharp contrast to the net increase of **$1.9 million** in Q1 2024, driven by a significant net change in unrealized depreciation on investments of **($8.8 million)**[11](index=11&type=chunk) [Management Commentary and Strategy](index=1&type=section&id=Management%20Commentary%20and%20Strategy) Management highlighted strategic rotation from legacy equity, net portfolio deployment, and urged shareholders to vote for the proposed merger with Portman Ridge for enhanced value - Successfully exited the equity investment in GA Communications, Inc., its second-largest non-yielding equity investment[3](index=3&type=chunk)[6](index=6&type=chunk) - The legacy equity portfolio has been reduced to **10.8%** of the total portfolio at fair value as of March 31, 2025, down from **13.8%** in the prior quarter and **18.2%** in Q1 2024[6](index=6&type=chunk) - Management strongly encourages shareholders to vote FOR the proposed merger with Portman Ridge (PTMN), citing benefits of increased scale, improved liquidity, and enhanced operational efficiencies[3](index=3&type=chunk)[8](index=8&type=chunk) [Investment Portfolio Analysis](index=2&type=section&id=Investment%20Portfolio%20Analysis) The investment portfolio decreased slightly to $169.6 million, with debt investments increasing to 86.6% of fair value and non-accrual investments decreasing as a percentage - During Q1 2025, the company made **$15.1 million** in investments and had **$12.4 million** in repayments and sales, resulting in a net deployment of approximately **$2.7 million**[7](index=7&type=chunk)[10](index=10&type=chunk) Portfolio Composition by Fair Value | Investment Type | % of Portfolio (Mar 31, 2025) | % of Portfolio (Dec 31, 2024) | | :--- | :--- | :--- | | First Lien Debt | 67.6% | 64.7% | | Second Lien Debt | 5.4% | 5.3% | | Subordinated Debt | 13.6% | 13.3% | | Equity | 10.8% | 13.8% | | Other | 2.6% | 2.9% | - As of March 31, 2025, debt investments in three portfolio companies were on non-accrual status, representing **2.2%** of the investment portfolio's fair value, down from **4.6%** as of December 31, 2024[10](index=10&type=chunk) - The weighted average annualized yield on the debt investment portfolio was **10.7%** as of March 31, 2025, unchanged from the prior quarter[10](index=10&type=chunk) [Corporate Developments and Outlook](index=1&type=section&id=Corporate%20Developments%20and%20Outlook) The Board declared a $0.36 per share distribution, and management expressed optimism about the proposed merger with Portman Ridge and future growth positioning - On May 7, 2025, the Board of Directors approved a second quarter distribution of **$0.36 per share**, payable on May 29, 2025[5](index=5&type=chunk) - Management believes the company is well-positioned to grow earnings and increase long-term shareholder value by continuing to monetize its legacy equity portfolio[7](index=7&type=chunk) - The proposed merger with Portman Ridge is presented as a marquee transaction for the BDC franchise and a significant milestone for the BC Partners Credit Platform[8](index=8&type=chunk) Detailed Financial Statements [Consolidated Statements of Assets and Liabilities](index=7&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Logan Ridge's total assets and liabilities decreased, resulting in a decline in total net assets and net asset value per share Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total investments at fair value | $169,613 | $172,290 | | Cash and cash equivalents | $5,073 | $15,015 | | **Total assets** | **$180,662** | **$192,669** | | **Total liabilities** | **$101,887** | **$107,570** | | **Total net assets** | **$78,775** | **$85,099** | | **Net asset value per share** | **$29.66** | **$32.04** | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 operations resulted in net investment income, but significant unrealized depreciation on investments led to a net decrease in net assets Statement of Operations Summary (in thousands) | Line Item | For the Three Months Ended March 31, 2025 | | :--- | :--- | | Total investment income | $4,631 | | Total expenses | $3,703 | | **Net investment income** | **$928** | | Net realized gain on investments | $2,603 | | Net change in unrealized depreciation on investments | ($8,755) | | **Net decrease in net assets from operations** | **($5,370)** | | **Net decrease in net assets per share** | **($2.02)** | Other Information [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) A conference call and webcast to discuss Q1 2025 financial results are scheduled for May 9, 2025, at 11:00 a.m. Eastern Time - A conference call is scheduled for Friday, May 9, 2025, at **11:00 a.m. Eastern Time**[15](index=15&type=chunk) - A live audio webcast will be available on the company's website, and a replay will be available through May 16, 2025[17](index=17&type=chunk)[18](index=18&type=chunk) [Forward-Looking Statements and Merger Information](index=5&type=section&id=Forward-Looking%20Statements%20and%20Merger%20Information) This report contains forward-looking statements regarding the proposed Portman Ridge merger, urging shareholders to review SEC filings for complete information and clarifying it is not an offer to sell securities - The report includes forward-looking statements involving risks and uncertainties, particularly related to the consummation and potential benefits of the proposed merger with PTMN[23](index=23&type=chunk) - Shareholders of both LRFC and PTMN are urged to read the Registration Statement (No. 333-285230) and the Joint Proxy Statement for important details regarding the proposed merger[24](index=24&type=chunk) - The document explicitly states it is not a solicitation or an offer to sell securities[27](index=27&type=chunk)

Reports Solid First Quarter Results with Net Investment Income of $0.35 Per Share and a Net Asset Value of $29.66 Per Share Declared a Distribution of $0.36 Per Share for the Second Quarter of 2025 Successfully Exited its Equity Investment in GA Communications, Inc., Further Reducing the Company’s Non-Yielding Equity Portfolio Investors are Encouraged to Vote FOR the Merger with Portman Ridge Finance Corporation (“PTMN”) NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) -- Logan Ridge Finance Corporation (“Logan Ri ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 ¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 814-01022 Logan Ridge Finance Corporation (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Maryland 90-0945675 (I.R.S. Employer Identificatio ...

Call Scheduled for 11:00 am ET on Friday, May 9, 2025NEW YORK, April 03, 2025 (GLOBE NEWSWIRE) -- Logan Ridge Finance Corporation (Nasdaq: LRFC) (“LRFC,” “Logan Ridge” or the “Company”) to release its financial results for the first quarter ended March 31, 2025, on Thursday, May 8, 2025, after market close. The Company will host a conference call on Friday, May 9, 2025, at 11:00 a.m. ET to discuss these results. By Phone: To access the call, please dial (646) 307-1963 approximately 10 minutes prior to the s ...

Logan Ridge Finance Corporation (NASDAQ:LRFC) Q4 2024 Earnings Conference Call March 14, 2025 11:30 AM ET Company Participants Ted Goldthorpe - Chief Executive Officer, President and Director Brandon Satoren - Chief Financial Officer Patrick Schafer - Chief Investment Officer Conference Call Participants Christopher Nolan - Ladenburg Thalmann Operator Good morning, and welcome to Logan Ridge Finance Corporation's fourth quarter and full year ended December 31, 2024, earnings conference call. An earnings pre ...

Financial Data and Key Metrics Changes - In 2024, Logan Ridge achieved the highest total investment income and net investment income in its history, amounting to $20.9 million and $4.2 million respectively, with a net investment income per share of $1.56 [6] - For Q4 2024, the company generated $5.4 million in investment income, an increase of $0.3 million from Q3 2024 [18] - Net investment income for Q4 was $1.5 million or $0.56 per share, up by $0.5 million or $0.19 per share from the previous quarter [20] - The net asset value as of December 31, 2024, was $85.1 million, a decrease of $1.2 million or 1.4% from the prior quarter [20] Business Line Data and Key Metrics Changes - The fair value of Logan's portfolio as of December 31, 2024, was approximately $172.3 million, with exposure to 59 portfolio companies, compared to $75.6 million with the same number of companies in the prior quarter [13] - The debt investment portfolio represented 83.3% of the total portfolio at fair value, with a weighted average annualized yield of approximately 10.7% [15] - The equity portfolio accounted for 13.4% and 13.8% of the portfolio on a cost and fair value basis respectively [16] Market Data and Key Metrics Changes - The company ended 2024 with no new non-accruals during Q4, maintaining stability in its investment portfolio [8] - As of December 31, 2024, four debt investments across three portfolio companies were on non-accrual status, with an aggregate amortized cost of $17.2 million and fair value of $7.9 million [16] Company Strategy and Development Direction - The company is focused on rotating out of its legacy equity portfolio, which has been a central part of its turnaround strategy [7] - The merger with Portman Ridge Finance Corporation is expected to provide greater scale, improved operating efficiencies, and increased trading volume, creating incremental value for shareholders [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in remaining active in the market with a healthy deployment pipeline and a disciplined investment strategy [11] - The board approved a dividend of $0.36 per share for Q4 2024, remaining flat compared to the prior quarter, reflecting strong financial performance [11] Other Important Information - The company successfully amended and extended its revolving credit facility with KeyBanc, reducing financing costs and increasing financial flexibility [8] - As of December 31, 2024, the company had $15 million in cash and cash equivalents, along with $26.2 million of unused borrowing capacity available for new investments [21] Q&A Session Summary Question: Will the Logan portfolio be subsumed into Portman Ridge or will there be further reduction in equity exposure? - Management indicated that the merger will be a straightforward blending of portfolios, with a continued focus on reducing equity exposure [26][28] Question: Will there be significant overlap in board members post-merger? - All Logan board members will overlap with Portman, effectively eliminating the need for dual director duties [33] Question: Is there consideration for board member compensation to be purely in stock? - Management noted that there has been no discussion on this matter, and there are regulatory constraints that may prevent such compensation [35][36]

Q4 and Full Year 2024 Earnings Presentation LRFCTM March 14, 2025 Important Information Forward-looking statements relate to future events or our future financial performance and include, but are not limited to, projected financial performance, expected development of the business, plans and expectations about future investments, our contractual arrangements and relationships with third parties, the ability of our portfolio companies to achieve their objectives, the ability of the Company's investment advis ...

Investment Income - Total investment income for Q4 2024 was $5.4 million, up from $5.1 million in Q3 2024 and $4.4 million in Q4 2023[6] - Net investment income for Q4 2024 increased to $1.5 million, or $0.56 per share, compared to $1.0 million, or $0.37 per share in Q3 2024, and $0.6 million, or $0.22 per share in Q4 2023[6] - Total investment income for the full year 2024 was $20.9 million, an increase of $0.7 million from $20.2 million in 2023[15] - Net investment income for the full year 2024 was $4.2 million, or $1.56 per share, compared to $3.8 million, or $1.43 per share in 2023[15] - Total investment income for the year ended December 31, 2024, was $20,916,000, an increase of 3.7% compared to $20,177,000 in 2023[33] - Net investment income rose to $4,180,000 in 2024, compared to $3,847,000 in 2023, marking an increase of 8.7%[33] - Interest income from non-control/non-affiliate investments was $17,186,000 in 2024, down from $18,536,000 in 2023, a decrease of 7.3%[33] - The company experienced a net realized gain on investments of $8,545,000 in 2024, compared to a loss of $16,393,000 in 2023, indicating a significant recovery in investment performance[33] Asset and Liability Management - Net asset value as of December 31, 2024, was $32.04 per share, down from $32.31 per share as of September 30, 2024, and $33.34 per share as of December 31, 2023[6] - As of December 31, 2024, total assets decreased to $192,669,000 from $197,088,000 in 2023, representing a decline of approximately 2.1%[31] - Total liabilities slightly decreased to $107,570,000 in 2024 from $107,913,000 in 2023, a reduction of about 0.3%[31] Shareholder Returns - Total stockholder distributions for 2024 amounted to $1.34 per share, compared to $0.96 per share in 2023[7] - The company approved a dividend of $0.36 per share for Q1 2025, representing a 13% increase from the $0.32 per share distributed in Q1 2024[11] Investment Activity - The company made approximately $38.3 million in investments and had $55.0 million in repayments and sales of investments for the full year 2024, resulting in net repayments of approximately $16.7 million[15] - The company exited its equity investment in GA Communications, Inc., further reducing its non-yielding equity portfolio[3] Strategic Initiatives - A merger agreement with Portman Ridge Finance Corporation aims to enhance shareholder value through greater scale and improved operational efficiencies[10] - The company plans to hold a conference call on March 14, 2025, to discuss the fourth quarter and full year 2024 financial results[19] Operational Performance - The company reported a net decrease in net assets resulting from operations of $29,000 for the year ended December 31, 2024, compared to a loss of $2,482,000 in 2023[33] - The company’s cash and cash equivalents increased significantly to $15,015,000 in 2024 from $3,893,000 in 2023, an increase of approximately 285.5%[31]

Financial Performance - The company reported a net income of $74.25 million from its IPO, selling 4,000,000 shares at $20.00 per share[19]. - The company is currently operating in a period of capital markets disruption and economic uncertainty, which may affect its business operations[29]. - The weighted average annualized cash yield on the company's debt portfolio was 9.6% as of December 31, 2024[47]. - The company expects to generate returns primarily from cash interest collected on debt investments, with additional returns from equity components such as warrants[44]. - The company may experience net operating losses if expenses exceed gross taxable income, but cannot carry forward these losses for tax purposes[135]. Investment Strategy - The company aims to generate current income and capital appreciation through debt and equity investments in lower middle-market and traditional middle-market companies[17]. - The investment strategy includes a focus on established companies with positive cash flow and experienced management teams[43]. - The company targets investments in private companies with trailing twelve-month EBITDA between $5 million and $50 million[31]. - The company has a concentration of investments in the healthcare industry, which may expose it to significant losses if that industry experiences a downturn[29]. - The company utilizes a disciplined investment portfolio monitoring and risk management process emphasizing strict underwriting standards[41]. Management and Governance - The company has experienced changes in its executive leadership, with a new CFO appointed effective April 1, 2024[25]. - The company is externally managed and relies on its investment adviser for managing and supporting its investment process[29]. - The investment committee is comprised of five members and meets regularly to review investment opportunities[50]. - The Investment Advisory Agreement was renewed for one year effective July 1, 2024, and will remain in effect until July 1, 2025[63]. - The Investment Adviser is entitled to indemnification for damages arising from the rendering of services under the Investment Advisory Agreement[64]. Fees and Incentives - The base management fee is calculated at an annual rate of 1.75% of gross assets, payable quarterly in arrears[66]. - The incentive fee consists of two parts, with the first part based on pre-incentive fee net investment income exceeding a hurdle of 2.0% per quarter[67]. - The second part of the incentive fee is 20.0% of realized capital gains on a cumulative basis, starting from December 31, 2021[70]. - The prior base management fee was set at an annual rate of 1.75% of gross assets, payable quarterly in arrears[89]. - No incentive fee is payable if pre-incentive fee net investment income does not exceed a hurdle of 2.0%, with a catch-up provision for income exceeding 2.5%[93]. Compliance and Regulatory Matters - The company has failed to qualify as a regulated investment company (RIC) for the fiscal year ended December 31, 2022, due to not meeting the income source requirement[16]. - To qualify as a RIC, the Company must distribute at least 90% of its investment company taxable income to stockholders[125]. - The Company may incur a 4% excise tax on undistributed income unless it meets specific distribution requirements[127]. - The company must maintain an asset coverage ratio of at least 150% for senior securities, as per the 1940 Act[145]. - The SEC has granted an exemptive order allowing the company to co-invest with affiliates under certain conditions[146]. Market and Economic Risks - The company is subject to risks related to geopolitical instability, interest rate volatility, and economic downturns that could impair its portfolio companies' ability to operate[14]. - The company’s net investment income is sensitive to interest rate changes, with potential impacts on net income outlined for various basis point changes[569]. - Changes in interest rates may affect both the cost of funding and interest income from portfolio investments[560]. - The company is subject to financial market risks, including valuation risk and interest rate risk[560]. - The company did not engage in hedging activities for the year ended December 31, 2024[563]. Valuation and Asset Management - The net asset value is determined quarterly by subtracting total liabilities from the fair value of gross assets, consistent with U.S. GAAP[107]. - The Company utilizes a multi-step valuation process for its investments, considering inputs from independent third-party valuation firms and various valuation methods[112]. - Fair value determinations may fluctuate significantly due to the lack of readily available market values for most investments, which are generally less liquid than publicly traded securities[113]. - The Company classifies inputs for fair value measurements into three levels, with Level 3 representing significant unobservable inputs[116][117]. - The Company competes with other BDCs and investment funds, facing intensified competition from new entrants with greater financial resources[123][124].