UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 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 inc ...

Portman Ridge Finance Corporation (NASDAQ:PTMN) Q3 2020 Earnings Conference Call November 10, 2020 9:00 AM ET Company Participants Ted Goldthorpe - CEO Ted Gilpin - CFO Patrick Schafer - CIO Conference Call Participants Christopher Nolan - Ladenburg Thalmann Paul Johnson - KBW Steven Martin - Slater Operator Good afternoon, ladies and gentlemen, and welcome to the Portman Ridge Finance Corporation Conference Call. An earnings press release was distributed Monday evening, November 9. If you did not receive a ...

Portman Ridge Finance Corporation (NASDAQ:PTMN) Q2 2020 Results Earnings Conference Call August 10, 2020 4:00 PM ET Company Participants Ted Goldthorpe - CEO Ted Gilpin - CFO Patrick Schafer - Chief Investment Officer Conference Call Participants Ryan Lynch - KBW Christopher Nolan - Ladenburg Thalmann Operator Good afternoon, ladies and gentlemen, and welcome to the Portman Ridge Finance Corporation Conference Call. An earnings press release was distributed Thursday morning, August 6. If you did not receive ...

PORTMAN 2020 Q2 Earnings Presentation August 10, 2020 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 Portman Ridge Finance Corporation ("PTMN", "Portman Ridge" or the "Company"), that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which ...

PORTMAN -RIDGE GARRISON CAPITAL Investor Presentation June 25, 2020 Important Information Forward-Looking Statements This Presentation may contain forward-looking statements that involve substantial risks and uncertainties, including statements regarding the completion of the transaction between Garrison Capital Inc. ("Garrison" or "GARS") and Portman Ridge Finance Corporation ("Portman Ridge" or "PTMN"). The use of words such as "anticipates," "believes," "intends," "plans," "expects," "projects," "estimat ...

Portman Ridge Finance Corporation (NASDAQ:PTMN) Q1 2020 Results Earnings Conference Call May 7, 2020 9:00 AM ET Company Participants Ted Goldthorpe - CEO Ted Gilpin - CFO Patrick Schafer - Chief Investment Officer Conference Call Participants Operator Good morning, ladies and gentlemen, and welcome to the Portman Ridge Finance Corporation Conference Call. An earnings press release was distributed Wednesday evening. If you did not receive a copy, the release is available on the CompanyÂ's website at www.port ...

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]