Financial Data and Key Metrics Changes - As of December 31, 2019, the company's NAV was $152.2 million or $3.40 per diluted share, down from $158 million or $4.23 per share at the end of 2018, representing a decline of approximately $5.8 million [13] - Net investment income (NII) for the full year 2019 was $3.1 million or $0.08 per share, compared to $10 million or $0.27 per share in the previous year, adversely impacted by approximately $4.8 million of non-recurring transaction costs [14] - The asset coverage ratio was 195% as of December 31, 2019, above the statutory requirement for BDCs of 150% but below the required 200% coverage ratio of existing notes [16] Business Line Data and Key Metrics Changes - During the quarter, excluding the OHAI merger, the company made investments totaling $7.1 million, with 76% in first lien securities [20] - The company exited 23 positions during the quarter, resulting in a loss of $118,000 relative to the carrying value [21] - The legacy CLO positions accounted for approximately 95% of the unrealized loss in the investment portfolio during the quarter [22] Market Data and Key Metrics Changes - The liquid credit markets were experiencing significant volatility, the most since the energy downturn in 2015 and 2016, exacerbated by COVID-19 headlines [9] - The company has not seen recent rate cuts trickle down to widening spreads, but deal activity has picked up due to the need for certainty [10] - The company anticipates that if volatility continues, widening spreads may occur as a response [10] Company Strategy and Development Direction - The company plans to continue reducing non-core and low-yielding assets from both the OHAI and legacy KCAP portfolios [28] - The company is looking at both traditional and non-traditional acquisition and merger candidates, considering these opportunistic rather than essential for generating stable returns [28] - The company aims to enhance earnings power through a combination of new asset origination, the OHAI merger, and improving spreads on existing portfolios [29] Management's Comments on Operating Environment and Future Outlook - Management is cautiously monitoring the impact of COVID-19 on the economy and supply chains, indicating a cautious approach to underwriting new loans [10] - The company feels good about its dividend and earnings power, despite recent LIBOR declines, which are expected to be offset by tailwinds from cheaper liabilities and higher spread asset origination [41] - Management does not foresee under-earning the dividend and is committed to maintaining it, with a focus on over-earning throughout the year [43] Other Important Information - The company announced a stock buyback program to repurchase up to $10 million of stock over the next year [8] - The company has reduced CLO equity positions from 19% to under 12% of the portfolio, indicating a strategic shift in asset allocation [26] Q&A Session Summary Question: Guidance on CLO portfolio percentage - Management expects the CLO portfolio to remain around the same level, with a slight decrease anticipated [32] Question: Clarification on OHAI payback - The payback is related to embedded transaction costs and earnings contribution, expected to be recouped over the next few quarters [33] Question: Status of share repurchase - Management intends to buy back stock, considering market conditions and existing restrictions [35] Question: Dividend outlook - Management feels good about the dividend, with expectations of earnings growth despite recent LIBOR declines [41] Question: Plans for portfolio management and debt refinancing - Management is considering refinancing options depending on market conditions and has flexibility within the current structure [45]

Financial Data and Key Metrics Changes - Net investment income for Q3 2019 was approximately $2.2 million or $0.06 per basic share, compared to $0.9 million or $0.02 per basic share in Q2 2019 and $3 million or $0.08 per basic share in Q3 2018 [12] - Total investment income for Q3 2019 was approximately $7.1 million, remaining relatively flat compared to Q2 2019 and Q3 2018 [13] - Total expenses for Q3 2019 were approximately $4.8 million or $0.13 per share, down from approximately $6 million or $0.16 per share in Q2 2019 [15] Business Line Data and Key Metrics Changes - Investment income from debt securities in Q3 2019 was approximately $4.2 million or $0.11 per basic share, compared to $3.9 million or $0.10 per share in Q2 2019 and $4.8 million or $0.13 per share in Q3 2018 [13] - Investment income on CLO fund securities was approximately $1.6 million or $0.04 per basic share in Q3 2019, down from $1.7 million or $0.05 per share in Q2 2019 [14] - Investment income from joint ventures was approximately $1.3 million or $0.03 per share, mostly unchanged from Q2 2019 and up from $800,000 or $0.02 per share in Q3 2018 [14] Market Data and Key Metrics Changes - The fair value of the portfolio was approximately $287 million as of September 30, 2019, with a net asset value of $3.55 per share [16] - The asset coverage ratio at quarter end was 204%, with approximately $125.4 million of par debt outstanding [17] Company Strategy and Development Direction - The company is focused on reducing CLO equity exposure and replacing it with investments in senior and unitranche joint ventures, which are believed to provide attractive risk-adjusted returns [10] - The company aims to continue pursuing junior capital solutions and high-quality economically resilient businesses with competitive advantages [7] - The merger with OHA Investment Corporation is expected to enhance scale and increase net investment income per share by spreading public company costs over a larger asset base [4][28] Management's Comments on Operating Environment and Future Outlook - Management has noted signs of credit deterioration in the broader market and is becoming more cautious, focusing on first lien securities for new investments [7] - The company expects to reposition the portfolio, including OHAI assets, with a long-term objective of net investment income growth and net asset value stability [29] - Management expressed confidence in the quality of earnings and sustainability of the dividend, citing higher spreads on booked assets and expected benefits from joint ventures [86] Other Important Information - The Board of Directors approved a cash distribution of $0.06 per share, payable on November 29, 2019 [18] - The company has entered into an agreement to terminate a lease for approximately its remaining carrying value, which will save about $100,000 per quarter going forward [16][62] Q&A Session Summary Question: Incentive fees paid to BC Partners - No incentive fees have been paid to the manager in the last two quarters [35] Question: Asset Manager Affiliates - The $17.8 million of Asset Manager Affiliates was sold at fair value, and the original cost remains listed as there is still an open holdco [38][39] Question: Percentage of assets from BC Partners - 58% of the current holdings have been sourced through the BC Partners platform [46][48] Question: OHAI portfolio transition - The OHAI portfolio is considered high-quality, with some repositioning expected over time, but no rush to do so [51] Question: Lease payment and charges - The $1.6 million payment reflects the remaining carrying value, with minimal noise expected in Q4 related to the lease [60] Question: Reducing structured products - The strategy to exit structured products remains unchanged, with natural paydowns expected to reduce the CLO portfolio over time [66] Question: Liability structure optimization - The company envisions a mix of fixed and revolving debt, with a potential shift towards more revolver financing [70] Question: New investments and industries - The company is focusing on recession-resilient industries, avoiding heavily cyclical sectors like energy and mining [95]

Financial Data and Key Metrics Changes - Net investment income for Q2 2019 was approximately $880,000 or $0.02 per basic share, compared to $2.5 million or $0.07 per share in Q2 2018 and a net investment loss of $2.2 million or negative $0.06 per basic share in Q1 2019 [6][8] - Net asset value (NAV) per share declined by $0.12 to $3.73 during Q2 2019, with approximately $0.08 of the decline attributable to a lease impairment and stockholder distribution exceeding net investment income [8][10] - Investment income from debt securities was approximately $3.8 million in Q2 2019, up from $2.9 million in Q1 2019 but down from $4.3 million in Q2 2018 [9] Business Line Data and Key Metrics Changes - Investment income from CLO fund securities was approximately $1.7 million in Q2 2019, compared to $1.8 million in Q1 2019 and $1.5 million in Q2 2018 [9] - Investment income from joint ventures increased to approximately $1.3 million in Q2 2019 from $1.1 million in Q1 2019 and $700,000 in Q2 2018 [9][12] - The company made investments into 12 borrowers during the quarter, totaling $46 million in face value, with 27% in first lien securities and 63% in second lien securities [12] Market Data and Key Metrics Changes - The market has seen increased competitiveness, leading the company to be selective in its investment approach, particularly in the unit tranche asset class [4][5] - The company is focusing on junior capital solutions only in attractive circumstances and companies with resilient business models [5] Company Strategy and Development Direction - The company is pursuing a merger with OHA Investment Corporation, expected to close in Q4 2019, which is anticipated to be accretive for both OHAI and Portman stockholders [2][16] - The strategy includes reducing CLO equity exposure and increasing investments in senior and unit tranche joint ventures to enhance risk-adjusted returns [5][18] - The company aims to stabilize NAV and improve earnings power by right-sizing the dividend to align with net investment income [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a path towards earnings growth through portfolio repositioning and potential benefits from the OHAI merger [26][34] - The company is monitoring the impact of interest rate changes on earnings, noting that while rate cuts can be a headwind, the overall credit quality in the portfolio remains strong [38] Other Important Information - The company approved a cash distribution of $0.06 per share, payable on August 29, 2019, with a projected total distribution of $0.32 per share for the full year 2019 [10][11] - The company has committed to $21.7 million in face value loans post-quarter, all first lien securities, indicating a strong pipeline of opportunities [14] Q&A Session Summary Question: Higher G&A costs this quarter - Management indicated that higher G&A costs were primarily due to externalization-related expenses and not significantly related to the OHA merger [21][24] Question: Path for earnings to exceed dividends - Management sees a path for earnings growth through portfolio repositioning and the potential benefits from the OHAI transaction [26] Question: Target ROE for Portman Ridge - Management aims for a double-digit ROE over time, with current tracking in high single-digits [34] Question: Callable unsecured notes in September - Management is considering options for restructuring or calling the notes to gain flexibility [36] Question: Investment in cannabis companies - Management clarified that due to regulatory restrictions, the company will not pursue investments in the cannabis sector [42] Question: Impact of Blackstone's investment in BC Partners - Management expressed optimism that the investment would provide capital to expand the credit business, benefiting Portman Ridge shareholders [43]

Financial Data and Key Metrics Changes - Net investment income (NII) for Q1 2019 was a loss of $2.2 million or $0.06 per share, compared to income of $2.4 million or $0.07 per share in Q1 2018 and $0.06 per share in Q4 2018 [8] - The reduction in net asset value (NAV) was from $4.23 per share at the end of 2018 to $3.85 per share due to one-time expenses and fair value declines [11] - Interest income on debt securities was $2.9 million or $0.08 per share, down from $3.8 million or $0.10 per share in the same period of 2018 [12] Business Line Data and Key Metrics Changes - Investment income from CLO fund securities remained flat at $1.8 million or $0.05 per share [13] - Income from the joint venture with FC3 increased to $950,000 or $0.03 per share from $700,000 or $0.02 per share in Q1 2018 [13] - Approximately $28 million was invested in interest-bearing securities during the quarter, with $13.2 million in senior secured first lien loans at a weighted yield of 7.96% and $12.5 million in second lien loans at a weighted yield of 9.68% [15] Market Data and Key Metrics Changes - The asset coverage ratio at the end of the quarter was 216%, with the potential to increase leverage to a new statutory ratio of 150% [14] - The unit tranche market has become more competitive, leading to caution and selectivity in investments [21] Company Strategy and Development Direction - The company aims to transition to a more stable and predictable vehicle for net investment income and net asset value [6] - Plans to reduce CLO equity exposure and replace it with investments in senior and unit tranche joint ventures, which are expected to provide attractive risk-adjusted returns [24] - Commitment to align with shareholders by supporting net investment income for one year and taking incentive fees and equity at net asset value for two years [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in managing distressed credits and believes that the majority have been written down to minimal market values [19] - The company anticipates being fully invested and utilizing its revolving credit facility efficiently by the end of Q2 2019 [20] - Management noted that while CLO equity is a volatile asset class, it is still considered a good investment, but the intention is to gradually reduce exposure [40] Other Important Information - A special distribution of $0.67 per share was made to shareholders in connection with the externalization transaction [6] - The first quarter distribution of $0.10 per share was made on April 26, with future distributions aligned with the completion of financials [16][17] Q&A Session Summary Question: Are there covenants preventing leverage increase? - Yes, there are covenants that prevent increasing leverage above the one-to-one debt to equity ratio [28] Question: Is there a plan to renegotiate covenants? - There is no immediate need to renegotiate, but if leverage needs to be increased, action will be required regarding the outstanding public debt [29][30] Question: What is the trend in non-accruals? - All concerning credits have been written down, and the only significant market value remaining is from Roscoe Medical [33] Question: What EBITDA multiples are being invested in? - EBITDA multiples in the middle market have not increased significantly, but adjustments in calculations are becoming more common [35][36] Question: Is the intention to reduce CLO equity to zero? - While CLO equity is seen as a good asset class, it is too volatile for a BDC, and the reduction will be gradual [40][42] Question: How will capital markets fees be split? - All fees from commitments made by Portman Ridge will go to shareholders, lowering the overall cost of capital [56]