PTMN - Earnings call transcript Q4 2023 | Portman Ridge Finance Corporation

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Operator

Welcome to Portman Ridge Finance Corporation's Fourth Quarter and Full Year 2023 Earnings Conference Call. An earnings press release was distributed yesterday, March 13, after market close. A copy of the release, along with an earnings presentation, is available on the company's website at www.portmanridge.com in the Investor Relations section and should be reviewed in conjunction with the company's Form 10-K filed yesterday with the SEC.

As a reminder, this conference call is being recorded by replay purposes. Please note that today's conference call may contain forward-looking statements, which are not guarantees of future performance or results and involve a number of risks and uncertainties. with materially of in including a in company's differ as forward-looking those may the result a number filings results from the those statements described Actual SEC. the of factors, statements Corporation Finance to such law. no Portman unless Ridge by assumes required update obligation any forward-looking

and Roos, Officer; Speaking on Chief Accounting Patrick Chief Investment President Financial Brandon be Portman Satoren, Ridge Officer. Chief Executive Ted Officer; today's of Goldthorpe, Finance and Chief call Officer, will Director Corporation; Jason Schafer,

like now Goldthorpe, would I turn of the Ridge. Ted that, With to over to Chief Portland call Officer Executive

Edward Goldthorpe

the and our Good Brandon results and and Officer, our provide and will Officer, Investment and morning, and thanks, Jason joined in highlights performance everyone, financial call. Financial for Patrick Chief Officer, year. joining discuss our Patrick detail. our Schafer; I'll full activities markets, fourth portfolio XXXX commentary the today quarter brief on investment Roos; condition operating Chief provide and on year by company's our our Jason will I'm our for Accounting Satoren. earnings greater Chief

conditions. in full somewhat announced earnings of and pleased operating fourth portfolio quarter with results power XXXX Portman Ridge despite we Yesterday, the and market its solid challenging year the are a

the and During total year-over-year. saw in increase core income investment XX% a in we year, a income investment increase XX%

nonaccruals share in net asset reduction quality Credit quarter-over-quarter. also company per a per $XX.XX with account improved value $XX.XX a and our Additionally, the to value per from cost, share share basis. in quarter market increased on

the annualized the repurchase the Board per past dividend to approximately cost fourth XXXX return approve accretive of on this first value. of asset XX.X% Due XXX,XXX that another share, $X.XX was average amount to quarter, of the strong represents of performance for We at million program, shares purchasing a level able continued net Directors strong the quarter continued a in during an quarter. $X.X our

share, per distributed increase compared to representing in total to as $X.XX shareholders distributed For the amounted to year dividends XXXX, dividend a the full X.X% XXXX.

picking deal our primary to new market Turning and whole and to primary during began conditions in deal in relative most QX XXXX. of late meaningfully far, for was market, as a activity down consistently XXXX up XXXX has active been XXXX so activity our while

and attractive, documentation. cost sponsor a On from find of began that their non-sponsor tick their to the peak combination equity belief enough to lower be estimate benchmark could that quarter the deal reasonable of the new combination buyers more new opportunities front, either have up rates, and reasonably deals, interest industry to of higher most leverage activity, finance In expectations near the fourth sponsor sponsors and activity on by a contributions we both being investment continue very capital. valuation given the rates higher through better participants or reached

XX% capital of during being has be existing the companies as As on case overall borrowers selective couple new quarters, to portfolio attractive deployed was in investment the existing companies to for very end, found and of To borrowers. to investments been fourth new in last that portfolio new be new XX% we compared our the opportunities X into in borrowers, quarter, deployed have more specific. continue

and provide strong Our an to invest to for continues diversified potential potential returns the maintain exceptionally -- goal be portfolio shareholders. companies to have in that our

remains continue repurchased program. -- consistently XXXX our to stock throughout shares we stock our Ridge, undervalued Portman believe under purchase renewed a and on Refocusing buyback

company's $XX $X.X another program prior cost renewed year, years, full compares of an we for for buyback of aggregate year shares million of million. approximately an Directors with XXXX. the aggregate repurchased Board XXX,XXX cost our an for During year. $X.X the This to incremental million stock Consistent

a to investment review Patrick that, turn with activity. will Officer, call over for of I our our Investment the And Schafer, Chief

Patrick Schafer

Ted. Thanks,

our Turning of floating were a XX, to XXXX, prime index interest rates, SOFR XX% presentation now sensitivity as of rate to spread our either of to the rate, interest and floating with earnings approximately of floating December to with portfolio substantially Slide spread -- debt were X our of either were such SOFR. as rate rate the being either a to all these linked rate or --

transition March during see lagged quarter and below the SOFR underlying has but still of of chart, between it been hike pause onset as from remain the from X, rates year As the the LIBOR can recent rates the you the the Fed to prevailing rates the rate market from benchmark the SOFR our since is the last narrowest cycle. market Fed, of the XXXX, assets the and gap

assets assets illustrative impact XX, purposes, XXXX. Slide of and rate, an if Having X-month rate both run reset aggregate would generate expect to of our of basis NII a December quarterly were $XX,XXX as we to our SOFR income. that, incremental X the of liabilities a all to For shows on said to

relatively and presentations for our the forward quarters. impact this curve Given have financial relatively earnings been slide shallow be analysis, likely few limited we the will going this we benchmark of as from past retiring equilibrium in

as to for XX. resulting in and than below repayments Originations sales $XX.X the million. a Slide level the down approximately prior year quarter fourth at fourth Skipping as net repayment remained quarter lower of well levels,

at XXX XX.X% expected Our to made purchased to are of yield spread of and were value, approximately points quarter investments of SOFR a new basis XXX -- a par cost the par. the during investments on

entities, and the average an million. approximately different fourth highly end XXX investment across per securities $X.X diversified. remained different at portfolio We quarter balance entity with maintaining of year par of ended while the XX Our spread all the industries investments

investments These emerged to represent of on from nonaccrual securities investment of nonaccrual portfolio X and and investments as relatively pay. status amortized the company's restructured one bankruptcy XX, at fair X.X% respectively. status the on status remained of of cost, in low the X.X% September loan on fourth of Slide an XXXX X to XXXX, the of investments borrowers Turning of decreased XXXX at X end to cash end QX at compared XX, aggregate our value and returned and the as as fourth quarter our nonaccrual quarter to

On nonaccrual par have million, is Slide value excluding our price of loans we blended securities debt of fair investments, XX.X% value. represents $XXX comprised of which of an XX% XX, and par aggregate a at foreseeing

$X.XX any Assuming XX.X% XX, our overlay of an NAV share, X% incremental on potential XXXX, portfolio, potential entire XXXX. default net as per $X.XX December XX% million per a of recovery increase increase to investments. value, values an par recovery, share securities debt again, If December incremental of would investments, reflect nonaccrual a we per share excluding and or fair to be rate the the were nonaccrual a to $XX.X excluding NAV recovery or XX% XX, value illustrative

to XX. turning Finally, Slide

XX% aggregate and you portfolios million over have of acquired at realized mergers. XXX% a at $XXX.X realized fair the respective these closing over combined of a have purchased of the of If the mark time combined and investments the X investments X last years, of value we unrealized

financial I'll turn now the to for our Jason to further results call period. the over discuss

Jason Roos

Patrick. Thanks,

financial full the mentioned, our and year both reflect fourth and quarter for performance. previously Patrick Ted XXXX strong results As

interest $XX.X income total attributable attributable securities increase This debt full million, year full to million securities which of to portfolio. interest of income the total for dividend $XX.X $XX.X The investment in the portfolio. the and investment largely year growth from interest $XX.X was due Our was income million XXXX previously from income, to debt fee income. was discussed PIK million, compares of to XXXX the for income the was which

an the increase Excluding our compared price investment impact the of to $XX.X $XX.X of million as in for XXXX. purchase income core $XX.X income investment was accounting, million, of core year million

was investment year net per the Our or $X.XX million share. income for XXXX full $XX.X

and December on interest XX.X% debt respectively. contractual XXXX, XX, December XX.X%, securities rate weighted was XXXX, As the and XX, our interest-earning approximately of average

positioned well continue to quarters the to in environment. current incremental revenue future believe the due We to generate portfolio rate remains

Total on of increase expenses XXXX, debt was million which expenses to increase $XX.X year XX, full an ended was for year rates the costs, in company's largely due the of the driven to compared This by interest in $XX.X XXXX. interest liabilities. largely issuance for total the increase and amortization were million December

$XXX.X value as $XX.XX an per compared XXXX. increase quarter share share $X.XX was or million quarter for the in $XX.XX $XXX.X net per or to per the of fourth share, Our of of XXXX asset million third

per in despite during the NAV increase was by quarter-over-quarter the share, NAV slightly, driven XXX,XXX total of The predominantly fourth decreasing shares repurchase quarter.

Turning sheet. of to the liability the balance side

due notes par As million total was due $XXX.X value of we had of and interest current or $XX at million borrowings in under million This facility, XXXX balance our notes rate of revolving outstanding weighted XX, $XXX.X borrowings million in credit X%. comprised average a of secured of December $XXX X.XXX% XXXX, a XXXX.

capacity end the secured XXXX-X we the period available November after the had under our year, notes senior ended million the reinvestment remaining of under no revolving facility of on credit XXXX. shortly and As the as borrowing $XX XX, draw of capacity borrowing

December a ratio a coverage on XXX%. gross our at net XX, basis. From perspective, of ratio X.Xx was leverage XXXX, X.Xx As and was on basis our asset a regulatory year-end

by will on of and on distributions announced amount of on distribution the was a XXXX. to per first share of record XXXX of declared the as $X.XX per April that, XXXX, quarter distribution business Finally, payable March back XX, I March $X.XX X, increase $X.XX at compared XX, Board stockholders quarterly Ted. to the per close turn call over to share XXXX. XXXX, This as approved share. With is to stockholder a the Total for

Edward Goldthorpe

XXXX. I'd for current our market we believe strategy, that deliver you you, of support. ongoing of be Ahead our all advantage questions, Thank returns positioned we well of again in once believe our we XXXX. we to like take to environment to able shareholders strong to reemphasize the prudent Jason. shareholders investment throughout to your will are Thank Through

the questions. our any remarks, over call I'll turn This for concludes prepared and

Operator

[Operator comes Christopher Instructions] Nolan line Your Ladenburg. first of with from the question

Christopher Nolan

onetime related please? the to, reimbursement expense What's

Jason Roos

the the Yes. Garrison Jason. acquisition of reimbursement is related a to this OHAI, and to following those of HCAP transition personnel and services BDCs. Chris, administrative fund to for paid That's

Christopher Nolan

their in Okay. guys and Then we not at are taking given quarters? perspective, look on coming no balance given growing sheet investment you slow longer the how the are XXXX-X should secured in new period notes cautious growing investments, reinvestment or the

Patrick Schafer

it's Yes. Patrick. Chris,

think say December it I I is I would I'd So relative think to way XX. frame the

reduction of a you expect as sheet. could balance in of cash at the quarter. more terms think like $XX I reasonably on liabilities, of had something saw you our the We of end the a million

to probably that a kind to is kind the be that is chunk something year, in for repaid, leverage said terms I of and course lower the assume that, I generally a between speaking, down it's repayment. say be absent of net have again, And debt the quarter. and net But that of wheelhouse from gross some over we our of assume, we a would X.X you is kind to relatively kind ultimately to range mean if perspective, of probably like you'd on the the going leverage of leverage end stable would imagine in what think expect of of reasonable X.Xx that long-term leverage like towards somewhere would I our go place. I target on within a right is same basis. we chunk

favor repaid So of I our of obviously, we're forward, reasonably investments. the of kind things you end on sort debt probably in But consistent are around speaking, in again, generally I think our decrease of that versus from portfolio kind think timing portfolio repayment. relatively point expect could tail of when size, new

Christopher Nolan

ATP final losses? is longer from Got then you. exit noticed nonaccrual. for the the on driver that the oil And is the driver. I Was no question realized that

Patrick Schafer

position. don't think equity ATP ever nonaccrual. on I was no, It's So an

like -- have sort coupon have it's it a of or to accrue. not So anything doesn't otherwise stated it

I don't think So that...

Jason Roos

quarter. realized the called losses couple to to previously this were recognized -- we unrealized as of a there, flipped quarter. seeing are last a CLOs Chris, result, realize and And me Let primarily losses that related you're this

Christopher Nolan

Got you. are you on And guys right? strips those CLOs, holding equity the

Patrick Schafer

or as yes, X of got I X called. mean, Jason them, mentioned, finally again, think I Correct.

that bucket, when So look CLO broadly speaking, But strips. at the equity no. is you our

Operator

comes question Johnson KBW. the next of Our with from line Paul

Paul Johnson

over I'm more -- those those stand? are this the and curious there you reimbursement. done do just mean at where will adviser quarter. -- year? do next with this on those essentially reimbursed expect expenses be Or Or for [indiscernible] those that of I point? this the Are expenses

Jason Roos

on No. the expense reimbursement. going say a being you onetime should quarter I that's amount $XXX,XXX, rate good run would And No, roughly for a expenses, that that the at forward. the the run was for quarterly administrative $XXX,XXX, rate look

that. see should you So

Paul Johnson

Got you.

most already like sounds in losses as quarter, [indiscernible] were those any mean mean of of that? were by took extra most as those from yes, those mean, CLOs realized was Were I getting -- you Or realization, markdown away. then marked? And -- Okay. the far I that it called of sort obviously those? is this position. I there that driven

Jason Roos

so Yes, about other you're that about to was total this we loss, that of still was like the to CLO then of realized, remainder hold. seeing related XX.X% flipped XX.X% positions -- couple total from realized incremental a unrealized quarter

Paul Johnson

you. Got

a leverage net that. levels. portfolio Appreciate biggest going And have of Okay. sort seeing little you're leverage just of obviously, mean, and feel year? I like you the spot helpful. of terms the Or kind do you'd leverage-based, in you That's -- comfortable adding around on kind into portfolio, the then, the of the these where got forward to actually running

Edward Goldthorpe

question. want net great were a target attractive, range we're end very environment on terms basis, in it's low be investment obviously, SOFR. of and provided we today high where mean below very guidance rather is wide of to that. on like The a we spreads I leverage the Yes, seeing

is about prudent money. pretty investing it continuing a to decent environment. So But be deployment we're

of So big think I see end to But I spike leverage. our don't we at the are in think going operating target a range. you're low

Paul Johnson

Okay. last have the repurchases quarter, share how share And NAV estimation to sort a for simple basis what of the accretive one, one guys -- quarter? this per but then you for any do was and me, hand that on of on just

Jason Roos

one. back you get I on hand. to have don't on it that to have we'll Yes,

Operator

Next question Steven the line Martin comes with from of Slater.

Steven Martin

say asked the end the quarter. quarter, the trends quarter? about we're the you and the of Can the your where repayments my or been PIK in close also, portfolio expect? far and of deployments I but questions talk you about answered. have you've Most you about to for -- Can And talked for so anything know

Patrick Schafer

Yes.

where be we're working I think starting just sit quarter, bit couple we we for look, still question, an your today, with latter that might investment think little the I a there's things down probably but a on perspective. of from

hit repayer. whether I of say as sort I Nolan, we're Christopher things to kind of bit a like kind probably depending obviously, So versus April, of ultimately slight in of in -- those affects finalized kind that some just still would of mentioned of March a on little early But get that. net

Steven Martin

PIK? the on And Okay.

Patrick Schafer

Yes.

sort On the PIC, look, any in of I wouldn't expect there meaningful trends to direction. be

talked investment before, as of instances the of are an kind it As and are there of aggregate about about we've the as like PIK taking where we're cash of kind in sort lots we we -- thinking investment. combination and an of about thinking security,

PIK attractive we higher at are go from but an a instances we intentionally as we there do a returning investment, a where component perspective, a where So broadly, at small think our is all PIK that's it's piece transaction cash the overall sort situations we if that can into if to speaking, say, of structure there a component of PIK securities. Obviously, paper, is PIK, I'd our our whole, security. look with opportunity you in of so. But of an to think small mix generally and PIK income

Steven Martin

Okay. And you're in the restructurings, about ratio portfolio, can talk leverage within you portfolio trends. what the expecting

Patrick Schafer

think I question. great -- Yes, we no, no,

it's somewhere think I -- the on our -- slide. we

EBITDA because portfolio the think, new quarter-over-quarter. of, but speaking, well you hold just interest sort again, and leverage to of lower ratios legacy as than whole, flat mentioned tend performance coverage BDCs say, underlying about generally People if the at like like thinking this like we've trend, still I perhaps kind decent market I to are sort our Again, kind broadly, would But I kind roughly somewhat of continues could of our levered from and our the seeing be of of borrowers look of say, think on are I how companies positions positions as that. are up. trend. revenue

would leverage probably we margin, whole the the to kind on flat our portfolio. of of say I'd So over expect decreasing

Steven Martin

And amendment...

Edward Goldthorpe

we credit last as like I stable here down, quality, nonaccruals you portfolio. this quarter, -- today, quality, I going you're Credit were think to sit saw across think think the I is

Steven Martin

amendments what and And about extensions?

Patrick Schafer

is obviously I there's market generally M&A say just these little some sponsors general want speaking, try of when but think portfolio. the much mentioned coming back, can I activity get themselves a in as to and an like would kind of still terms as extension exit might -- because, they of probably a of flexibility in bit again, they as I in trends, we've uptick

So we're of sponsorer just X any exit the say like company. performing to -- sort kind fine. like amendment kind credit, whether years the we borrower happy to wouldn't sort in look, company sort of of of they of amount activity extensions of give definitely uptick more some still of seeing We're things the reasonable -- extension decide sort sort because, there's I of forced is want the But to the and like that.

a sort of I that of generally it's for relatively type activity. stable/average environment think

Steven Martin

the in you comment? And getting said same still paid were past, you've Or the you those? would make for

Patrick Schafer

Yes. speaking, new a we fee are deals. as We of today, where still some or terms a now, whole we type in Again, market in seeing get of either coming right pricing. spreads broadly like sit the

want say, as opposed years, is company priced an getting incremental actually at to in those opposed I'd situation say -- X keeping let's XXX and economic same us. is type spread the keeping repricing economic to benefit is where down some -- same XXX, the it But to they So us generally a transaction. or benefit again, has free. the for a at X meaningfully delevered sometimes to are not an an it, of as activities to speaking, yes, But

depending little on still would for you're it's sometimes you're it, but getting less obvious paid. bit characteristics, say the paid a I how it getting So

Operator

Next line from question with Miyazaki of Investment comes Confluence David the Management.

David Miyazaki

You're longer-term Could about what like do the $X you is now that remind plan around us about you million for plan CLO investments? take in looks just this your future? Where to your holding. you're

Edward Goldthorpe

trying wind called. the to I to down get plan I we're take to is portfolio Yes. mean CLOs it mean X. the and the

So to take is the X. to plan it

David Miyazaki

Okay. higher? more leverage do balance kind And your have you winds that leverage on that of is, that as does where down, my ratio was up affect the thought take like you to feel That capacity target that. sheet

Patrick Schafer

of on side. My opinion, kind like to net generally want asset the meaningful $X of the It X.XX impact be We X.Xx feel have again, we a it's kind not particularly, doesn't million. leverage. to in

attractive So I on in macro focused think investing we itself. where probably a is meaningful we as is necessarily of we or a more well I'd we be how portfolio economy that as how be up more probably has we so a think wouldn't decisions down say of on that, of bit. broadly sort portfolio the as CLO that the how about whole. terms the sort impact leverage And to taking for the our opposed driving little that about would environment either would think as say leverage or think the leverage

David Miyazaki

in more in Great. and since widen kind you work from team mean, they And of middle of some it's what been whatever of working of that Is EBITDA, your be you like have to the market, it's one you things had the you as after. have Okay. is. tend market that million, up I lower kind upper bargaining you $XXX middle lens in trends median be? talk and Or where almost lot on. I borrower managers of or And are? kind weighted And to the have about? worked And pretty experience power? how the Ted, do acquisitions it looks feel go the far middle to kind bigger? Is lower neighborhood going a like one of the close about always side you happen as that you and a back in the think little do that if ideal the to you've profile your, that your And EBITDA is home would these with you be industry what the at the just then you about Or do neighborhood? where middle sticking do of hear average the market. been of step bit, should say, Do in like you

Edward Goldthorpe

what think really mean Yes, I is call enough. the big I franchise our latter. I'd

So we million below to $XX want companies don't to of lend EBITDA.

skews banks, think at franchise high Our the EBITDA average it's LXXX peers head and of given real are in the think are platform, weighted And see with our a the our competing like which as some reality versus head to end syndicated versus a It's our I where I the to I of markets a we just portfolio, think LIBOR like average mean can we cap is. just not. little our size LXXX. is you market large our spread is misleading.

So our low. credit quality is very stable. Nonaccrual is really

credit think paid we think discernible quality. in and long the company see get as enough, is we difference don't we So extra we big as a return,

So EBITDA couple about core I if say and by think driven a outliers. weighted franchise, always you it's would that high, looks of our average really

David Miyazaki

at Yes. often limitation to of averages. be one tend looking of weighted Okay. That the

Patrick Schafer

Yes.

involved might was how at our $XX if EBITDA And $XX a of of EBITDA, that where strategy that's like look we But million at kind a of roll-up investment in so now. to acquisition be point, million lot and there's original million of we that instances it. get obviously, $XXX

in opposed as and our bank of kind like as and more to things say, a so sort core active skew market," that, of is so an little And off balance but that I periods of, at stress we but the opportunistic of tend we're franchise. looking acquiring to, in would where syndicated bit of those said, tend Ted to, like assets more higher more sheets "the of to purchasing be would EBITDA,

David Miyazaki

Right.

used and of the you to how that managers. just outcomes acquiring XX, of to Okay. mixed industry good Last history of how mean mean, of -- from you it's the say can I or Slide of marched other about your a I with what regard I it's And you've like portfolios to what And kind bag assets. always kind kind realizations see even loans it topic. through of acquiring amounts relative getting a have wind And point at now is end expectations? portfolio progress when higher going ongoing is to kind are of of to be held, that down? still the to look your the the you conditions we the because larger loans relatively difficult the harder downs Or to wind been is do of proportion where are linear? think has

Edward Goldthorpe

like latter. actually. the the portfolio great if It's the than think we that at don't reality $XX not I I -- a it's down the XX, look too. And we're question, original less here that's harvest you in I were of is to mean number was out Slide KCAP KCAP a on and Oakhill for small mean basically million of platform very because exposure.

them So yielding. are really, more most number are the of legacy challenged loans relate not, to of lower than Garrison. loans A but some those

on-balance had structure. And sheet so CLO an Garrison

transaction spreading So are of lower the loans get said, being ones of closed to tend be later. XXXX. loans. Garrison those the That the refinanced we Those end types that

into So we're years X.X that portfolio.

we those suggestion we've to million, that a shareholder that are be -- is yesterday tend a want portfolio said us small and again, $XX on to other much to legacy how So coming a lot of be of player. very to out tend may break specifically, extended we we because, smart things. One the loans Garrison in maturities up

extending we the we more been like the us of credit could realization. get So and because some has instances spread. There take we usually

is the low break should as And a around million. portfolio. so you people what's in that then what else guys, versus like out $XX for for we the break yielding should proactive And of also percentage out remaining extensions we

Patrick Schafer

last or very months these be your X -- to question, answer the are coming maturity lot on continue we to from date. continue XX it's going up think because years To a we linear of

David Miyazaki

that's Yes, Okay. very helpful.

of in downside have you them on best, one a that you've success not seemingly of best over think working had the recycling what And out. portfolios this to you're if lot big capital the and probably come taking perspective doing. the across not I surprises in and

and helpful on that's it's how some to So left. what's have actually granularity unfolded

that. appreciate So I

Edward Goldthorpe

yesterday. It's good feedback I feedback. somebody think feedback. That's good from got And similar it's feedback. good We

Operator

from Repertoire of question Next with comes Partners. line Deepak Sarpangal the

Deepak Sarpangal

now, also pay about size was I another Patrick the And high quite and like you've improvements looks capital of improvement, in bit solid seen but terms of also investments then there definitely an on I know yielding deployments of back shares similarly seemed seems in portfolio and other management side Ted, to to in think downs, more are like of had years And X portfolio been more alternatives it team, allocation buyback further where more as upfront leaned and repayments lot so than a newer Yes, that and few be I about but deploy talked been terms. a the balancing I leverage side, appreciate on given increasing each you've How net you on questions because And know some the you've well, think you to quarter. about shares one, little those. One, you've repurchasing number and the capital, senior progress buying that becoming both especially because few consistent is into on in A talked of of the in basis. your now, on repayments of that for kind in do know appropriately maybe the allocation, creating. the a like now previous could a looked if place invest. but market. accretion talk good it's as also year, environment attractive you've credit you weakness pretty the pretty some stock in increasingly or undervalued, those it it capital maybe the a a quality.

allocation like side. So question of just the capital kind that was first on the

pretty there's about you portfolio breakdown? And the are looked gross an less terms some energy. there know by viewed attractive, can't talk as side, can anything it seemed details, then full you have areas exit in that exposures reduction there, like see like that industry in the you versus have whether or it's finally, I of obviously, of it maybe but it on was don't already terms that data like of the probably in management interesting either we then consumer, we investments. some And that new there seems if those net automotive, low industry, in were but

the to learn investments, were air Just -- holdings media curious follow-on particular, And newer more those. hear then about, love metalworks, there more about think CineMedia and in I or were and systems. CineMedia, I think some to Murray, We'd tactical [indiscernible]. ones

Edward Goldthorpe

Why incredibly points just and a one portfolio chime quarters post spread it, were basis, crisis, even in mean regional Patrick the Okay. The I of on you just like don't XX lending And attractive. doing then, start new as see no up and can picked we're there's can investments basis that I obviously, -- banking X is are like higher. over SOFR we've last well. incremental the year.

so really deals. do we And were able to low-levered, wide-spreading

vintage. I you So about we're really gotten it's would tell that more competitive. excited that

starting on definitely spreads have come down like generic about sponsor particularly February, year-to-date So finance.

are Just not many just LBOs supply good that there demand, out there.

excited very we're investments new our about. So

quarter. our very picked we supplier mean side, out up out a exit On taken I'll in ways. be up. taken that in auto stressed different of had this acquisitions that we tell we're I yes, brought many were of one the we to you it you, excited And

activity on capital more back first But when buying our deploy to time I for think that lot and then BDC maturing than think to be say, the for particularly NAV Patrick's is the comments, sense upside made excited in math the were we ever, made not ever, NAV we're us a year below like relatively NAV philosophy it there's have things that in portfolio yes, very was I've -- And think good. first I last supplier allocation, we something was year exit was our of stock, is the we XX-plus heard in this the I run particular, should was where that, buy to trading normal that so capital anymore. And would from course. because you stock. believe auto to away always back And par. But percent NAV, think a like we we just

buying stock. as well it's math we the good buy time time, what deployment and be in a new to back says. long, actually math basically a regardless of long first think the discipline would But stock the as support always So back just for

as things So also increased said, really money our buy we're back we've our good finding but program, you invest to in.

Patrick Schafer

And Yes. portfolio taking your Deepak, some of questions.

take of you of end, remember from it's position that But I'll and them if necessarily apology them Bucks. company equity them can't a The of -- had hit restructuring debt the couple get don't all. listed a starting a [indiscernible] bankruptcy, a all and part So actually back. in emerged we since [indiscernible] at as we of Lucky received was I and

a place that's in put of company to dates exposure it was portfolio. did just back harvest a brought in in and think, of actually we We our lender, Metal QX, I with restructuring kind a the reduced facility. is legacy sort So quarter. Northeast where the new a Works, HCAP another refinancing capital,

to older It's kind weapon and that. like, again, business. of I'd of work to bit as person of a systems So there. On just that's the of kind but brought another X exposure the of again, you securities like One to a have segments. technology Air up kind refinancing defense Tactical a shows we cockpit reduce Force with a call kind their is X your Navy really different airplanes things main new Air. it in borrowers, because just to actually they give and with and like They flavor, retrofit

one they part then the -- of the other -- the of and like name part I And of then -- the one folks but Red And only that's kind forget business that. actually, do the of technical of name So the segment, is called do that they they're the the the team. business. of what's

for So kind actually training airplanes and of simulation. of pilots of they train and I'm sort exercises they their and combatants" training Force. have actually as help the the for teams, Navy acting Air kind -- "enemy the they and with essentially

did good term there. business and loan pretty like So contracts. -- that really defensive stable We a by business. we pretty Murray secured first-lien

it provides Corporation, consulting it's actually a legal like business solutions Global services. -- Murray tech-enabled and provides that

warrants security. And be investment we fairly attractive last the of discovery. attached particular first one, a they a transaction, it refinancing it's was is gamut loan different overall existing for which of compliance and acquisition within that streams That their what XXX with between we European a It's it actually firm that various work well and of things structured a pretty they lien and to CineMedia, legal And maintenance companies Fortune jurisdiction, Fortune lawsuits a well a portfolio company then large -- it. -- different sort as software that things the some couple an paperwork So and an I'll manage think private U.S. as to was kind and support implementation a with. equity of of business, owns private do like do around it, again, XXX help companies of, services equity departments litigation a and video large we making was general and ongoing lot a company technology. of call legal around but as European it's in is would They firm. a

So they what is of set-top have there is cards of kind broadcast -- they do like actually into traditional software go that and boxes technology. they -- it part like for

sort Europe things video of have think in with management their ad can and sort also help management and piece a mostly within with to provider call that. of sort work they then sort into and you your a it, of where lastly, So streams like actually SIM providers a area, of but TV deliver different that. and of -- business. you applications sort Netflix help in between, content video targeting streaming with also and who's broadband them they their device piping broadband Internet -- things they and content like Sky like they -- kind That's They work of performance of do apps the cards homes. And

streams. lien a fairly senior a revenue loan. secured it's diverse set Again, first So we're of

at XX.X priced X.XX ]. ] debt at that's think [ I [

just of we've like of think level, X kind would of have Ted flavor kind industry. that's already that about kind got a into intention business at a supplier, again, So which adding, no of we're feel we services exited a are an that. and then And business that if defense higher you just that it, which to and of getting pretty automotive industries back but alluded attractive we

Deepak Sarpangal

Lucky that could And certainly and that read high-tech That have former about continued direction, or you all follow sounds of a thing, big quick that litigation just care they're even I investments there? Yes, I recognize in that with kind of but details already business that seems on which services, something progression, number. pharma, the seems company and the the great. of mean, a like it industries the interesting is given Bucks pretty have had more up. don't your most the Is it for along size in then great. of upside? health Or a business kind -- something but suing how I equity was be your stake of promoter immaterial I

Patrick Schafer

you -- look, but would the some so but can persuasive, public, I of -- never it's facts involved it, I you litigation. know extent kind it's when in say -- pretty say would say to look get I immaterial, it's what not that talk is I general in would on but

us, there. pursuing. the equity it would So I really think into I to to kind be position say obviously, say would that's again, baked interesting I of pretty we not about -- feels that would But how

kind for overwhelming. But I you are to candidly a its read wouldn't having lawsuit, want again, through say legal I'd So of process. legal, worth. the that, that like handicap the said pretty take if can't facts But you

Deepak Sarpangal

great. work. up Keep great the Sounds

Operator

time. call I back Mr. over turn you. There are Goldthorpe, no further the to at questions Ted this

Edward Goldthorpe

out as to you and forward you to thank any we're which And questions, to us next attending you speaking per happy discuss. with to you Thank so much. look all our on very much. call. We Thank our for always, again call, reach please

Operator

and conference this Ladies call. gentlemen, today's concludes

disconnect. You may now

Portman Ridge Finance (PTMN) 14 Mar 242023 Q4 Earnings call transcript