LRFC - Earnings call transcript Q2 2021 | Logan Ridge Finance Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to our Second Quarter 2021 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ms. [G.A. Langford]. you. Thank ahead. go Please

Unidentified Company Representative

open. with in is available morning, an XXXX today to earnings Earnings this company's XX-Q before conjunction at with company's on and section with was Good the presentation, Investor Corporation's filed the press Ridge Second distributed the market XX, in August Relations Quarter Conference earnings the morning, should copy and along you. of Logan press welcome Finance release A the website Thank release, Call. www.loganridgefinance.com be SEC. reviewed Form An

company's risks for a this purposes. call differ may As call result which future a as a reminder, those and Finance conference the update Officer from forward-looking go materially of results the forward-looking that, Ridge those to factors, Logan with by law. turn contain now note is SEC. are in the of conference I to uncertainties. Chief being Goldthorpe, Ted today's Please obligation Actual or over forward-looking recorded guarantees filings of Finance no With would Ridge number statements ahead, the of involve performance like Logan any unless Corporation. replay assumes results that not a required to of in detailed call statements, Ted. statements including Please and Executive such Corporation may number

Ted Goldthorpe

and Officer, Roos; us earnings I'm call. Jason by Chief Patrick joining Chief our you on morning, for Financial thank Good and joined today Investment our Schafer. our Officer,

of Corporation. credit the new is a company. LLC, investment BC of Advisor transition purposes U.S. July know, Management regulatory platform of to on Capital closing owned BC Partners Inc., and the under and Partners and alternative global very Partners the management middle-market adviser Ridge's XX an discussed, at as subsidiary than public part part in asset adviser. BC of X provider organization, history a is BC you as new adviser objectives Credit U.S. more Finance Canadian as manager the the Logan for And Mount Ridge X, adviser Logan the Logan about assets affiliate previously for to Europe. broader as leading a Ridge. a of We're we over LP immediate in transition capital wholly of the with of new announced Mount companies, leading years we a billion Logan operating As $XX and have Logan Partners excited

positions investments actively on income-producing the focused Partners. replacing rotating originated by debt with form investments are we senior high-quality, First, in non BC secured and of

remarks, report in X at including by X have portfolio we this the but more valued June look improve his to Patrick optimize since subsequent the million XXXX. company additional flexibility. on made quarter reducing as these providing of the end, commentary we'll headway significant and that capital companies, weeks reducing In company's are both $XX.X X of investments, cost transaction XX, provide to or Secondly, closing just debt, pleased objectives. structure to leverage of will we and while has exited equity transition,

are that of companies in portfolio sales additional X various have also We stages processes.

company license. SBIC second its surrendered the at outstanding debentures repaid quarter, end of SBA the and the the in million corresponding full Secondly, $XX in

KeyBank the was to credit end. subsequent facility Additionally, quarter repaid

we as the debt are increasing soon it the to address objective a flexibility. near-term possible. of the cost such and of that of will reinstate sustainable a balance to in priority is the execute goal with on be side sheet as these months Ultimately, dividend Our in position funding our coming relates the to initiatives reducing as to right maturities

AUM expenses base. the synergies and operational Partners our reduce administrative credit across believe and we scale potential term, of an Over platform to there's our the total opportunity BC by leveraging longer

opportunities scale discount to to inorganic Additionally, we to shareholders, reducing through stock benefit of the plan to further grow including trading including drive NAV. pursuing the the platform,

public in order and We turn to we that, Logan our executing growth With transactions execute of Chief call on expertise plan Schafer, the BDC in sector, strategic to as record to initiatives solid have and track abilities for arise Patrick our a I opportunities Investment Ridge. Officer. the leverage will over our

Patrick Schafer

Ted. Thanks, to detail summarize I briefly quarter, investment activities activities some the for provide on subsequent end. will more then quarter

company net approximately the and repayments $XX.X the million second quarter, approximately investments in sales had and approximately the sales, period. $XX.X of million million repayments $XX During in of and made for resulting

we end, which debt amortized represented companies X.X% X an quarter and aggregate with with status, investment $XX.X on in million, XX, $XXX million fair value nonaccrual of XXXX, total value approximately At which a of yield portfolio portfolio The June and of X.X%. value As XX.X% fair company's had of the of companies, approximately cost a investments of represents the our aggregate debt portfolio, XX portfolio, million. fair of portfolio the in respectively. investment had an portfolio, $X.X investments [Indiscernible] X.X% of

City in exited Technologies, now Protection, the equity recognized of During a that were of equity $X.X XXXX, detail positions the the on also $XX.X successfully date, equity million To Inc, subsequent companies. unrealized of LLC, activities Inc., by recognized our Logan to Visions, as Rapid Sitel were driven our at March million LLC, depreciation, from and XXXX, and $XX.X Solutions XX, these valued CIS which we realized These $XX.X June company million. driven exits LLC. Inc. Bridge Fire companies on million, by [X as AmeriMark of The Corporate $XX.X interest XX% exited investments the gains LLC, challenges. end. X portfolio in part of XX, million $XX.X on Secure have little portfolio. proceeds Direct of of of Based been investments, approximately by Gear, generating our investments, in interest June at successful Ridge's was successfully marked large company's Inc. I'll Computing, million the our company impacted quarter, and provide have COVID-related we portfolio] quarter more Xirgo

have will year-end. additional X equity companies we sale we're in currently portfolio various by interest of are stages close that in cautiously processes that Additionally, optimistic

to demonstrate turn at proceeds our our it to continue investments We successes Logan recurring length, to I'll ability is for sufficient high-quality execute of positions BC and early on out these legacy such objective discussed Jason. redeploy originated a believe rotate consistent debt income cash that plan earns these into call earning stream we a strategic our repositioning promising shareholders. dividend over by are portfolio As interest Ridge now the senior this sustainable to Partners. these support, for secured and to

Jason Roos

at first of primarily quarter income other per dividend key was prior Accordingly, XXXX. to compared of in $X in a the quarter $XXX,XXX $X.XX share decrease the quarter and decrease of net quarter $XXX,XXX. management second was or net from of XX, XXXX. quarter share million $XXX,XXX debentures. per June. in March to SBA XXXX, share by and per first million June to by Interest million Net SBA declined investment $XX.XX primarily equivalents. $XXX,XXX recognized quarter realized assets due the assets XXXX. The of loss million net increase income loss the the general administrative compared Patrick. losses $XXX.X quarter-to-quarter, $XX.X cash the second cash $X.XX the or per net extinguishment $XX.X received. or Interest base million XXXX declined $XX.XX compared and compared XX, offset $XX,XXX for primarily was for the for XXXX on expenses change Thanks, million first quarter ended XXXX. the in during The by unrealized to $XXX,XXX a in share were million $X.X quarter. XX, losses drivers. per in XX, quarter declined in Total Total quarter expenses compared income $X.XX of XXXX for $XXX.X was declined quickly debentures we and resulting quarter and million I to $XXX,XXX, We $X.X million in Interest the the were for at expenses the per fees will March $X its by $XXX,XXX of compared now $X.XX or share review June in of by XXXX. million the $XX.X nonrecurring NAV of to for decreased to and $X.X operations the had financing expense share net second full or million $X.X share or gains, unrealized XXXX, for net to investment At due repayment change per

bearing notes SBA we senior repaid interest approximately with fully of the [Indiscernible] At million quarter. secured during of million $XX fixed we of of liability The KeyBank, on $XX facility had X.Xx at convertible company's fully quarter On to facility. and million rate the the XX X% $XX.X comprised rate debentures debt drawn KeyBank bearing senior outstanding was an end, $XXX quarter of Subsequent compared second balance rate million have the the credit sheet, side repaid end, interest X.XX%. total of secured ratio outstanding debt-to-equity at to X.Xx $XX notes the $XX.X the million at we on quarter of Xx million prior end year-end. and March an

capital Goldthorpe. turn actively As that, our to I optimize the structure. Ted Ted on are With continuing we back mentioned, will debt to call focused over

Ted Goldthorpe

the on progress of materially since summary, very risk on composition July the the In management are already we company Jason. made by focused undertaking we've with Thanks, rotating pleased we've X. proceeds those rapidly income portfolio structure. further of high-quality our nonincome-generating also into liability and current with debt investments redeploying optimizing producing longer-term and deleveraging the from a investments objective of investment equity reduction

quarters to expenses practically breadth credit by concludes over is to I call a all of any more possible. the for at as support. will updates as prepared now for questions. depth continue as goal the your to scale to Thank you increased soon leveraging dividend reinstate and our sustainable the Partners the look operating turn transactions. in is BC to broader operator our Our forward streamline This the We coming Over we strategic through platform make time, remarks, progress. the and goal rate providing and

Operator

Nolan question Your from comes Christopher Instructions] first [Operator Thalmann. Ladenburg from

Christopher Nolan

say quarter the progress the rise is exits -- to if sheet? to made time. the such start in short down balance on see date, so, the we should debt to it plan to of balance start cash a And you've all the that to Is the the remaining Congratulations million substantially $XX early? the paying fair given

Patrick Schafer

question. Thanks Christopher, for Patrick. this the is

repaying been noted we balance in we then proceeds facility, transactions. actively it that specifically, our went but which we towards reinvesting of didn't So in And highlight the BC prepared originated some remarks. those KeyBank have

kind when our So -- get are we on investments end, BC-related quarter kind books BC-driven that of investments. new the to of you'll see

combination So going those there's on. of things X a

Christopher Nolan

in expect Great. quarter the should a third And exits? we then these realized follow-up, gains from

Patrick Schafer

exits, far these yes. from So

XX. numbers, mentioned a June the received relative slight the in we increase we proceeds as think balance of I there's terms to of

specific TBD these to relates X investments, it obviously as realizations, yes. but yes, future so So far, and on

Operator

Instructions] would like I call for to the closing [Operator now management comments. turn to back

Ted Goldthorpe

to Thank questions. management and much. with you, for forward any And speaking us, Thank everyone, with member any look any always, joining today, very we quarter. as next you please of reach us out to time you to at

Operator

gentlemen, Thank this concludes and your a have and conference. Ladies today's day. wonderful for you participation,

all disconnect. may You

Logan Ridge Finance (LRFC) 16 Aug 212021 Q2 Earnings call transcript