Portman Ridge Finance Corporation Announces Second Quarter 2024 Financial Results

Core Insights - Portman Ridge Finance Corporation reported a net investment income of $0.70 per share for Q2 2024, reflecting a 4.5% increase from the previous quarter [4][2] - The company declared a quarterly distribution of $0.69 per share, payable on August 30, 2024 [3][4] - The net asset value (NAV) decreased to $21.21 per share as of June 30, 2024, down from $22.57 per share at the end of Q1 2024 [2][4] Financial Performance - Total investment income for Q2 2024 was $16.3 million, slightly down from $16.5 million in Q1 2024 [2][6] - Core investment income for Q2 2024 was $16.2 million, compared to $16.5 million in Q1 2024 [2][6] - Net investment income for Q2 2024 was $6.5 million, an increase from $6.2 million in Q1 2024 [2][6] Share Repurchase and NAV Impact - The company repurchased 79,722 shares at an aggregate cost of approximately $1.6 million during Q2 2024, which was accretive to NAV by $0.03 per share [2][4] - The total investments at fair value as of June 30, 2024, were $444.4 million, down from $471.3 million at the end of Q1 2024 [6][12] Credit Facility Amendments - On July 23, 2024, the company amended its senior secured revolving credit facility, increasing commitments to $200 million from $115 million and reducing the interest rate margin to 2.50% from 2.80% [3][5] - The new terms provide the company with greater financial flexibility and the ability to finance new investment opportunities [5][6] Portfolio Composition and Performance - As of June 30, 2024, the debt investment portfolio at fair value was $358.9 million, consisting of 75 different portfolio companies across 28 industries [6][12] - Non-accruals on debt investments increased to nine, representing 0.5% of the investment portfolio at fair value [6][12] Management Commentary - The CEO expressed confidence in the quality of the portfolio despite challenges faced in certain inherited portfolio companies, which contributed to the decline in NAV [4][6] - The company remains committed to delivering sustainable returns to shareholders [6]