Release Date: March 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Do you anticipate the Logan portfolio to be subsumed into Portman Ridge, or will there be further reductions in equity exposure? How do you see the combined portfolio going forward? A: Ted Goldthorpe, CEO: It's going to be a straight merger. We have exited another equity position this quarter, and reducing equity exposure remains a focus. We plan to blend the portfolios together without leaving behind a Subco or CVR. Patrick Schafer, CIO: The equity percentage of Logan will decrease further, and we aim to reduce equity exposures and reinvest proceeds. Portman has a different strategy, focusing on yield-generating equity positions.
Q: Will there be significant overlaps in Board members between Logan Ridge and Portman Ridge, or will it be a combination of two different groups? A: Patrick Schafer, CIO: The Logan Board members have a 100% overlap with Portman. There are additional board members on Portman, but all Logan Board members are existing Portman Board members, effectively eliminating double Director duty.
Q: Has there been any consideration of compensating Board members purely in stock to align interests, given the merger and strategic discussions? A: Ted Goldthorpe, CEO: We haven't discussed this. Due to the 40 Act Rule, management cannot be paid in stock, and this might apply to the Board as well. Historically, we've looked into paying executives in stock, but it's not allowed under the 40 Act. We would need to check if this applies to the Board.
Q: What is the current status of Logan Ridge's investment portfolio and its composition? A: Patrick Schafer, CIO: As of December 31, 2024, the fair value of Logan's portfolio was approximately $172.3 million with exposure to 59 portfolio companies. The debt investment portfolio represented 83.3% of the total portfolio at fair value, with a weighted average annualized yield of approximately 10.7%. First lien debt represented 64.4% of the total portfolio on a cost basis.
Q: Can you provide an update on Logan Ridge's financial results for the fourth quarter of 2024? A: Brandon Satoren, CFO: For the quarter ended December 31, 2024, Logan Ridge generated $5.4 million of investment income, a $0.3 million increase from the prior quarter. Total expenses decreased by $0.3 million to $3.9 million. Net investment income for the fourth quarter was $1.5 million or $0.56 per share. The net asset value as of December 31, 2024, was $85.1 million, a $1.2 million decrease from the prior quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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