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Jun 30, 2024
Portman Ridge Q2 2024 Earnings Report
Reported net investment income of $0.70 per share and net asset value of $21.21 per share.
Key Takeaways
Portman Ridge Finance Corporation reported a net investment income of $0.70 per share for Q2 2024, a 4.5% increase from the previous quarter. The company repurchased 79,722 shares at an aggregate cost of approximately $1.6 million, which was accretive to NAV by $0.03 per share. Challenges at certain inherited portfolio companies led to a decline in NAV and an increase in non-accruals.
Net investment income for the second quarter of 2024 was $6.5 million ($0.70 per share).
Net asset value as of June 30, 2024, was $196.4 million ($21.21 per share).
79,722 shares were repurchased during the quarter ended June 30, 2024, at an aggregate cost of approximately $1.6 million.
The company amended and extended its Credit Facility with JPM, reducing the applicable margin from 2.80% to 2.50% per annum and increasing the revolving commitment by $85.0 million to $200.0 million.
Portman Ridge
Portman Ridge
Forward Guidance
Portman Ridge believes it is well positioned to continue executing its strategy and delivering positive returns to its shareholders due to its amended credit facility, robust pipeline, and strong balance sheet.
Positive Outlook
- New attractive terms reduced the applicable margin from 2.80% per annum to 2.50% per annum, reducing overall cost of capital.
- New revolving commitment from JPM increased by $85.0 million to $200.0 million, expanding ability to provide additional capital to existing portfolio companies.
- Greater flexibility to finance new attractive investment opportunities.
- Company is committed to shareholders.
- Robust pipeline and strong balance sheet.
Challenges Ahead
- Challenges at certain select inherited portfolio companies.
- Decline in NAV.
- Increase in non-accruals.
- Core investment income decreased by $3.0 million as compared to the second quarter of 2023.
- Net investment income decreased as compared to the same period the prior year.