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, a $0.3 million increase from Q3 2024 [18] - Net investment income for Q4 was $1.5 million or $0.56 per share, an increase of $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 represented 13.4% and 13.8% of the portfolio on a cost and fair value basis respectively as of December 31, 2024 [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 successful sale of the largest equity position, Nth Degree, for $17.5 million was a significant catalyst for the merger with Portman Ridge, which is expected to provide greater scale and improved operating efficiencies [7][9] - The company aims to continue reducing equity exposure and reinvesting proceeds into yield-generating investments [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to deliver meaningful returns to stakeholders, supported by a healthy deployment pipeline and 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 reductions 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 overlaps in board members post-merger? - All Logan board members will overlap with Portman, with additional members from Portman joining the board [32] Question: Is there consideration for board member compensation to be purely in stock? - Management noted that there has been no discussion on this, and there may be regulatory restrictions preventing stock compensation for executives and board members [35][36]