In This Article:
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Investment Income: $15.2 million for Q3 2024, down from $16.3 million in Q2 2024.
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Interest Income: $12.7 million in Q3 2024, compared to $13.7 million in Q2 2024.
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Total Expenses: Decreased to $9.4 million in Q3 2024 from $9.9 million in Q2 2024.
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Net Investment Income: $5.8 million or 63 per share in Q3 2024, down from $6.5 million or 70 per share in Q2 2024.
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Net Asset Value (NAV): $188 million or $20.36 per share as of September 30, 2024, down from $196.4 million or $21.21 per share in the prior quarter.
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Net Realized and Unrealized Losses: $7.3 million in Q3 2024, compared to $12.8 million in Q2 2024.
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Gross Leverage Ratio: Approximately 1.4 times as of September 30, 2024, compared to 1.5 times as of June 30, 2024.
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Borrowings Outstanding: $267.5 million with a weighted average interest rate of 6.7% as of September 30, 2024.
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Quarterly Distribution: 69 per share approved, payable on November 29, 2024.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Portman Ridge Finance Corp (NASDAQ:PTMN) successfully refinanced its 2018-2 secured notes, resulting in net spread savings of approximately 28 basis points.
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The company extended the maturity of the JPM credit facility and reduced the spread by 30 basis points, leading to a reduction in interest expense.
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A stock repurchase program was executed, buying back 33,429 shares, which was accretive to NAV by 1 cent per share.
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The board approved a 69 cents per share distribution for Q4 2024, representing a 13.6% annualized return on net asset value.
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Portman Ridge Finance Corp (NASDAQ:PTMN) maintains a highly diversified investment portfolio across 28 industries with 72 unique portfolio companies.
Negative Points
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The company's third-quarter earnings were impacted by cash and portfolio management initiatives, leading to a temporary dip in performance.
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Net investment income decreased to $5.8 million or 63 cents per share, down from $6.5 million or 70 cents per share in the prior quarter.
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Total investment income decreased due to lower interest income from net repayments and sales, as well as a loan being placed on non-accrual.
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Net asset value decreased by $8.4 million or 85 cents per share compared to the previous quarter.
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The company experienced net realized and unrealized losses on investments in debt totaling $7.3 million for the quarter.
Q & A Highlights
Q: What's the driver of the realized losses, please? A: The primary driver of the realized loss was Qualtek. We had previously disclosed that we exited Qualtek at the mark we had in the prior quarter, so there was no impact on NAV as a result of that realized loss.