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Logan Ridge Finance Corporation Announces First Quarter 2025 Financial Results
| For the Three Months Ended March 31, | |||||||||
| 2025 | 2024 | ||||||||
| Total investment income | $ | 4,631 | $ | 5,003 | |||||
| Total expenses | 3,703 | 4,056 | |||||||
| Net investment income | 928 | 947 | |||||||
| Net realized gain (loss) on investments | 2,603 | 287 | |||||||
| Net change in unrealized appreciation (depreciation) on investments | (8,755 | ) | 675 | ||||||
| Net realized gain (loss) on extinguishment of debt | (146 | ) | (58 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | $ | (5,370 | ) | $ | 1,851 | ||||
Investment income
The composition of our investment income for the three months ended March 31, 2025 and March 31, 2024, was as follows (dollars in thousands):
| For the Three Months Ended March 31, | |||||||||
| 2025 | 2024 | ||||||||
| Interest income | $ | 3,906 | $ | 4,633 | |||||
| Payment-in-kind interest | 547 | 353 | |||||||
| Dividend income | 143 | 17 | |||||||
| Other income | 35 | - | |||||||
| Total investment income | $ | 4,631 | $ | 5,003 | |||||
Fair Value of Investments
The composition of our investments as of March 31, 2025 and December 31, 2024, at amortized cost and fair value of investments was as follows (dollars in thousands):
| March 31, 2025 | Investments at Amortized Cost | Amortized Cost Percentage of Total Portfolio | Investments at Fair Value | Fair Value Percentage of Total Portfolio | ||||||||||||
| First Lien Debt | $ | 131,479 | 66.5 | % | $ | 114,600 | 67.6 | % | ||||||||
| Second Lien Debt | 10,834 | 5.5 | % | 9,119 | 5.4 | % | ||||||||||
| Subordinated Debt | 27,060 | 13.7 | % | 23,040 | 13.6 | % | ||||||||||
| Collateralized Loan Obligations | 309 | 0.2 | % | 572 | 0.3 | % | ||||||||||
| Joint Venture | 4,119 | 2.1 | % | 3,948 | 2.3 | % | ||||||||||
| Equity | 23,709 | 12.0 | % | 18,334 | 10.8 | % | ||||||||||
| Total | $ | 197,510 | 100.0 | % | $ | 169,613 | 100.0 | % | ||||||||
| December 31, 2024 | Investments at Amortized Cost | Amortized Cost Percentage of Total Portfolio | Investments at Fair Value | Fair Value Percentage of Total Portfolio | ||||||||||||
| First Lien Debt | $ | 123,068 | 64.4 | % | $ | 111,460 | 64.7 | % | ||||||||
| Second Lien Debt | 10,623 | 5.5 | % | 9,051 | 5.3 | % | ||||||||||
| Subordinated Debt | 26,996 | 14.1 | % | 22,858 | 13.3 | % | ||||||||||
| Collateralized Loan Obligations | 852 | 0.4 | % | 940 | 0.5 | % | ||||||||||
| Joint Venture | 4,170 | 2.2 | % | 4,153 | 2.4 | % | ||||||||||
| Equity | 25,723 | 13.4 | % | 23,828 | 13.8 | % | ||||||||||
| Total | $ | 191,432 | 100.0 | % | $ | 172,290 | 100.0 | % | ||||||||
Interest Rate Risk
Based on our consolidated statements of assets and liabilities as of March 31, 2025, the following table shows the annual impact on net income (excluding the potential related incentive fee impact) of base rate changes in interest rates (considering interest rate floors for variable rate securities), assuming no changes in our investment and borrowing structure (dollars in thousands):
| Basis Point Change | Increase (decrease) in interest income | (Increase) decrease in interest expense | Increase (decrease) in net income | ||||||||
| Up 300 basis points | $ | 4,200 | $ | (1,322 | ) | $ | 2,878 | ||||
| Up 200 basis points | 2,800 | (881 | ) | 1,919 | |||||||
| Up 100 basis points | 1,400 | (441 | ) | 959 | |||||||
| Down 100 basis points | (1,400 | ) | 441 | (959 | ) | ||||||
| Down 200 basis points | (2,744 | ) | 881 | (1,863 | ) | ||||||
| Down 300 basis points | (3,984 | ) | 1,322 | (2,662 | ) | ||||||
Conference Call and Webcast
We will hold a conference call on Friday, May 9, 2025, at 11:00 a.m. Eastern Time to discuss the first quarter 2025 financial results. Stockholders, prospective stockholders, and analysts are welcome to listen to the call or attend the webcast.
To access the conference call, please dial (646) 307-1963 approximately 10 minutes prior to the start of the call and use the conference ID 8145997.
A replay of this conference call will be available shortly after the live call through May 16, 2025.
A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis on the Company's website in the Investor Resources section under Events and Presentations. The webcast can also be accessed by clicking the following link: . The online archive of the webcast will be available on the Company's website shortly after the call.
About Logan Ridge Finance Corporation
Logan Ridge Finance Corporation (Nasdaq: LRFC) is a business development company that invests primarily in first lien loans and, to a lesser extent, second lien loans and equity securities issued by lower middle-market companies. The Company invests in performing, well-established middle-market businesses that operate across a wide range of industries. It employs fundamental credit analysis, targeting investments in businesses with relatively low levels of cyclicality and operating risk. For more information, visit .
About Mount Logan Capital Inc.
Mount Logan Capital Inc. (“MLC”) is an alternative asset management company that is focused on public and private debt securities in the North American market. MLC seeks to source and actively manage loans and other debt-like securities with credit-oriented characteristics. MLC actively sources, evaluates, underwrites, manages, monitors, and primarily invests in loans, debt securities, and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.
About BC Partners Advisors L.P. and BC Partners Credit
BC Partners is a leading international investment firm in private equity, private credit and real estate strategies. Established in 1986, BC Partners has played an active role in developing the European buyout market for three decades. Today, BC Partners executives operate across markets as an integrated team through the firm's offices in North America and Europe. For more information, please visit
BC Partners Credit was launched in February 2017 and has pursued a strategy focused on identifying attractive credit opportunities in any market environment and across sectors, leveraging the deal sourcing and infrastructure made available from BC Partners.
Cautionary Statement Regarding Forward-Looking Statements
Some of the statements in this communication constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to future operating results of PTMN and LRFC, and distribution projections; business prospects of PTMN and LRFC, and the prospects of their portfolio companies; and the impact of the investments that PTMN and LRFC expect to make. In addition, words such as“anticipate,”“believe,”“expect,”“seek,”“plan,”“should,”“estimate,”“project” and“intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this communication involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) the ability of the parties to consummate the merger on the expected timeline, or at all; (ii) the expected synergies and savings associated with the merger; (iii) the ability to realize the anticipated benefits of the merger, including the expected elimination of certain expenses and costs due to the merger; (iv) the percentage of PTMN shareholders and LRFC shareholders voting in favor of the applicable Proposal (as defined below) submitted for their approval; (v) the possibility that competing offers or acquisition proposals will be made; (vi) the possibility that any or all of the various conditions to the consummation of the merger may not be satisfied or waived; (vii) risks related to diverting management's attention from ongoing business operations; (viii) the combined company's plans, expectations, objectives and intentions, as a result of the merger; (ix) any potential termination of the merger agreement; (x) the future operating results and net investment income projections of PTMN, LRFC or, following the closing of the merger, the combined company; (xi) the ability of Sierra Crest Investment Management LLC (“Sierra Crest”) to implement its future plans with respect to the combined company; (xii) the ability of Sierra Crest and its affiliates to attract and retain highly talented professionals; (xiii) the business prospects of PTMN, LRFC or, following the closing of the merger, the combined company, and the prospects of their portfolio companies; (xiv) the impact of the investments that PTMN, LRFC or, following the closing of the merger, the combined company expect to make; (xv) the ability of the portfolio companies of PTMN, LRFC or, following the closing of the merger, the combined company to achieve their objectives; (xvi) the expected financings and investments and additional leverage that PTMN, LRFC or, following the closing of the merger, the combined company may seek to incur in the future; (xvii) the adequacy of the cash resources and working capital of PTMN, LRFC or, following the closing of the merger, the combined company; (xviii) the timing of cash flows, if any, from the operations of the portfolio companies of PTMN, LRFC or, following the closing of the merger, the combined company; (xix) the risk that stockholder litigation in connection with the merger may result in significant costs of defense and liability; and (xx) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities). PTMN and LRFC have based the forward-looking statements included in this document on information available to them on the date hereof, and they assume no obligation to update any such forward-looking statements. Although PTMN and LRFC undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that they may make directly to you or through reports that PTMN and LRFC in the future may file with the SEC, including the Registration Statement and Joint Proxy Statement (in each case, as defined below), annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
This document relates to the proposed merger of PTMN and LRFC and certain related matters (the“Proposals”). In connection with the Proposals, PTMN has filed a registration statement (Registration No. 333-285230) with the SEC (the“Registration Statement”) that contains a combined joint proxy statement for PTMN and LRFC and a prospectus of PTMN (the“Joint Proxy Statement”) and will mail the Joint Proxy Statement to its and LRFC's respective shareholders. The Registration Statement and Joint Proxy Statement will contain important information about PTMN, LRFC and the Proposals. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. SHAREHOLDERS OF PTMN AND LRFC ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT AND OTHER DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PTMN, LRFC AND THE PROPOSALS. Investors and securityholders will be able to obtain the documents filed with the SEC free of charge at the SEC's website, or, for documents filed by PTMN, from PTMN's website at , and, for documents filed by LRFC, from LRFC's website at
Participants in the Solicitation
PTMN, its directors, certain of its executive officers and certain employees and officers of Sierra Crest and its affiliates may be deemed to be participants in the solicitation of proxies in connection with the Proposals. Information about the directors and executive officers of PTMN is set forth in its proxy statement for its 2025 Annual Meeting of Stockholders, which was filed with the SEC on April 29, 2025. LRFC, its directors, certain of its executive officers and certain employees and officers of Mount Logan Management LLC, and its affiliates may be deemed to be participants in the solicitation of proxies in connection with the Proposals. Information about the directors and executive officers of LRFC is set forth in the Annual Report on Form 10-K/A, which was filed with the SEC on April 29, 2025. Information regarding
the persons who may, under the rules of the SEC, be considered participants in the solicitation of the PTMN and LRFC shareholders in connection with the Proposals will be contained in the Registration Statement, including the Joint Proxy Statement included therein, and other relevant materials when such documents become available. These documents may be obtained free of charge from the sources indicated above.
No Offer or Solicitation
This document is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and the communication of this document is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of an offer to purchase any securities in PTMN, LRFC or in any fund or other investment vehicle managed by BC Partners or any of its affiliates.
Contacts:
Logan Ridge Finance Corporation
650 Madison Avenue, 3rd Floor
New York, NY 10022
Brandon Satoren
Chief Financial Officer
href="" rel="nofollow" target="_blank" title="...">..
(212) 891-2880
Lena Cati
The Equity Group Inc.
...
(212) 836-9611
Val Ferraro
The Equity Group Inc.
...
(212) 836-9633
| Logan Ridge Finance Corporation Consolidated Statements of Assets and Liabilities (in thousands, except share and per share data) | ||||||||
| As of March 31, 2025 | As of December 31, 2024 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Investments at fair value: | ||||||||
| Non-control/non-affiliate investments (amortized cost of $162,447 and $152,393, respectively) | $ | 143,121 | $ | 138,079 | ||||
| Affiliate investments (amortized cost of $35,063 and $39,039, respectively) | 26,492 | 34,211 | ||||||
| Total investments at fair value (amortized cost of $197,510 and $191,432, respectively) | 169,613 | 172,290 | ||||||
| Cash and cash equivalents | 5,073 | 15,015 | ||||||
| Interest and dividend receivable | 1,572 | 1,404 | ||||||
| Prepaid expenses | 4,061 | 2,543 | ||||||
| Receivable for unsettled trades | - | 1,082 | ||||||
| Other assets | 343 | 335 | ||||||
| Total assets | $ | 180,662 | $ | 192,669 | ||||
| LIABILITIES | ||||||||
| 2026 Notes (net of deferred financing costs and original issue discount of $602 and $694, respectively) | $ | 49,398 | $ | 49,306 | ||||
| 2032 Convertible Notes (net of deferred financing costs and original issue discount of $283 and $439, respectively) | 4,717 | 7,061 | ||||||
| KeyBank Credit Facility (net of deferred financing costs of $1,092 and $1,147, respectively) | 42,369 | 47,607 | ||||||
| Management and incentive fees payable | 805 | 834 | ||||||
| Interest and financing fees payable | 1,541 | 942 | ||||||
| Accounts payable and accrued expenses | 3,057 | 1,820 | ||||||
| Total liabilities | $ | 101,887 | $ | 107,570 | ||||
| Commitments and contingencies | ||||||||
| NET ASSETS | ||||||||
| Common stock, par value $0.01, 100,000,000 shares of common stock authorized, 2,655,973 and 2,655,898 shares of common stock issued and outstanding, respectively | $ | 27 | $ | 27 | ||||
| Capital in excess of par value | 188,860 | 188,858 | ||||||
| Total distributable loss | (110,112 | ) | (103,786 | ) | ||||
| Total net assets | $ | 78,775 | $ | 85,099 | ||||
| Total liabilities and net assets | $ | 180,662 | $ | 192,669 | ||||
| Net asset value per share | $ | 29.66 | $ | 32.04 | ||||
| Logan Ridge Finance Corporation Consolidated Statements of Operations (in thousands, except share and per share data) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| INVESTMENT INCOME | ||||||||
| Interest income: | ||||||||
| Non-control/non-affiliate investments | $ | 3,699 | $ | 4,633 | ||||
| Affiliate investments | 207 | - | ||||||
| Total interest income | 3,906 | 4,633 | ||||||
| Payment-in-kind interest and dividend income: | ||||||||
| Non-control/non-affiliate investments | 432 | 336 | ||||||
| Affiliate investments | 115 | 17 | ||||||
| Total payment-in-kind interest and dividend income | 547 | 353 | ||||||
| Dividend income: | ||||||||
| Affiliate investments | 143 | 17 | ||||||
| Total dividend income | 143 | 17 | ||||||
| Other income: | ||||||||
| Non-control/non-affiliate investments | 35 | - | ||||||
| Total other income | 35 | - | ||||||
| Total investment income | 4,631 | 5,003 | ||||||
| EXPENSES | ||||||||
| Interest and financing expenses | 1,813 | 2,007 | ||||||
| Base management fee | 805 | 893 | ||||||
| Directors' expense | 116 | 150 | ||||||
| Administrative service fees | 272 | 201 | ||||||
| General and administrative expenses | 697 | 805 | ||||||
| Total expenses | 3,703 | 4,056 | ||||||
| NET INVESTMENT INCOME | 928 | 947 | ||||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||
| Net realized gain (loss) on investments: | ||||||||
| Non-control/non-affiliate investments | 70 | 287 | ||||||
| Affiliate investments | 2,533 | - | ||||||
| Net realized gain (loss) on investments | 2,603 | 287 | ||||||
| Net change in unrealized appreciation (depreciation) on investments: | ||||||||
| Non-control/non-affiliate investments | (5,012 | ) | (3,904 | ) | ||||
| Affiliate investments | (3,743 | ) | 4,579 | |||||
| Net change in unrealized appreciation (depreciation) on investments | (8,755 | ) | 675 | |||||
| Total net realized and change in unrealized gain (loss) on investments | (6,152 | ) | 962 | |||||
| Net realized loss on extinguishment of debt | (146 | ) | (58 | ) | ||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (5,370 | ) | $ | 1,851 | |||
| NET INCREASE (DECREASE) IN NET ASSETS PER SHARE RESULTING FROM OPERATIONS – BASIC | $ | (2.02 | ) | $ | 0.69 | |||
| WEIGHTED AVERAGE COMMON STOCK OUTSTANDING – BASIC | 2,655,899 | 2,678,342 | ||||||
| NET INCREASE (DECREASE) IN NET ASSETS PER SHARE RESULTING FROM OPERATIONS – DILUTED | $ | (2.02 | ) | $ | 0.65 | |||
| WEIGHTED AVERAGE COMMON STOCK OUTSTANDING – DILUTED | 2,655,899 | 3,195,740 | ||||||
| DISTRIBUTIONS PAID PER SHARE | $ | 0.36 | $ | 0.32 |
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