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Jun 30, 2022
Portman Ridge Q2 2022 Earnings Report
Reported strong investment activity, lower non-accruals, and reduced cost of capital.
Key Takeaways
Portman Ridge Finance Corporation announced its financial results for the second quarter ended June 30, 2022, reporting a net asset value of $261.7 million ($27.26 per share) and total investment income of $15.0 million. The company refinanced its Revolving Credit Facility, reducing the applicable margin and extending the reinvestment period.
Net asset value for the second quarter of 2022 was $261.7 million ($27.26 per share) as compared to $278.3 million ($28.76 per share) in the first quarter of 2022.
Total investment income for the second quarter of 2022 was $15.0 million, of which $11.9 million was attributable to interest income from the debt securities portfolio, inclusive of payment-in-kind income.
Net investment income for the second quarter of 2022 was $5.5 million ($0.57 per share).
During the second quarter of 2022, the Company refinanced its Revolving Credit Facility with JPMorgan Chase Bank, reducing the applicable margin to 2.80% per annum from 2.85% per annum.
Portman Ridge
Portman Ridge
Forward Guidance
Portman Ridge believes that they are well-positioned to improve portfolio performance and investment income in the second half of 2022.
Positive Outlook
- Prudent investment strategy and seeking out strong companies to add to the portfolio.
- Ended the quarter with a strong portfolio.
- Reduced non-accrual positions.
- Maintained a dividend of $0.63 per share.
- Proactively restructured agreement with JPMorgan Chase to lower the interest rate and extend the maturity date.
Challenges Ahead
- Operations have been affected by the challenging economic environment.
- Operations have been affected by the rising interest rates.
- Operations have been affected by market volatility.
- Originations are still lower than the second half of 2021.
- Operations have been affected by rising interest rates and market volatility.