Portman Ridge Finance Corporation Announces Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Portman Ridge Finance Corporation reported a net investment income of $2.59 per share for the full year 2024, with a net asset value of$19.41 per share as of December 31, 2024 [1][12] - The company has initiated a share repurchase program, repurchasing a total of 202,357 shares for approximately $3.8 million during the full year 2024, which was accretive to NAV by$0.07 per share [1][5] - A merger agreement with Logan Ridge Finance Corporation aims to enhance shareholder value through increased scale, improved liquidity, and operational efficiencies [1][4] Financial Performance - Total investment income for the fourth quarter of 2024 was $14.4 million, down from$15.2 million in the third quarter of 2024 and $17.8 million in the fourth quarter of 2023 [5] - For the full year 2024, total investment income was$62.4 million, a decrease from $76.3 million in 2023, with core investment income also declining to$62.2 million from $74.5 million [12][13] - Net investment income for the fourth quarter of 2024 was$5.5 million ($0.60 per share), compared to$11.2 million ($1.19 per share) in the fourth quarter of 2023 [5][12] Shareholder Distributions - The company announced a regular quarterly base distribution of$0.47 per share and a supplemental distribution of $0.07 per share, with the supplemental distribution expected to approximate 50$2.76 per share [5] Investment Portfolio - As of December 31, 2024, the fair value of the investment portfolio was $405.0 million, down from$467.9 million in 2023, with a diversified spread across 28 different industries [12][14] - The debt investment portfolio, excluding CLO Funds, totaled $320.7 million at fair value, with an average par balance per entity of approximately$2.5 million [12][14] Merger Agreement Details - The merger agreement with Logan Ridge involves a two-step merger process, with LRFC merging into a wholly-owned subsidiary of Portman Ridge, followed by LRFC merging into Portman Ridge itself [4][6] - Each share of LRFC's common stock will be converted into 1.500 newly issued shares of common stock of Portman Ridge, with cash paid for fractional shares [6] Management Commentary - The CEO of Portman Ridge highlighted the positive developments in 2024, including the merger potential, while acknowledging challenges within the investment portfolio [7] - The company reduced the number of non-accrual investments from nine to six by the end of 2024, indicating a focus on improving credit quality [7]