Logan Ridge Finance Corporation

Thank you for standing by. Good morning and welcome to Logan Ridge Finance Corporation's fourth quarter in full year and the December 31, 2024 earnings conference call. An earnings press release was distributed yesterday, March 13, 2025, after the close of the market. A copy of the release along with a supplemental earnings presentation is available on the company's website at www.loganridgefinance.com in the investor resources section and should be reviewed in conjunction with the company's Form 10-K file with the SEC. As a reminder, this conference call is being recorded for 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. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the company's filings with the SEC. Speaking on today's call will be Ted Goldporb, Chief Executive Officer, President and Director of Logan Ridge Finance Corporation. Brendan Satorin, Chief Financial Officer, and Patrick Schaefer, Chief Investment Officer. With that, I would now like to turn the call over to Ted Goldport, Chief Executive Officer of Logan Ridge Finance Corporation. Please go ahead, Ted.

Good morning, and welcome to our fourth quarter and full year 2024 earnings call. As mentioned, I am joined today by our Chief Financial Officer, Brendan Satorin, and our Chief Investment Officer, Patrick Schaefer. Following my opening remarks, Patrick will provide additional details on our investment activity to date, and Brandon will walk through the financials. 2024 was a profoundly transformative year for Logan Ridge, as we continued to build upon the record results seen in 2023 and made significant strides in the rotation out of our legacy equity portfolio. This was the strongest year of financial performance for Logan Ridge since Mount Logan Management took over as the company's investment advisor in July of 2021. 2024's results were highlighted by the highest total investment income and net investment income in our history at $20.9 million and $4.2 million, or $1.56 per share, respectively. The hallmark of 2024, however, was our successful sale of our largest equity position, Nth Degree, for $17.5 million in cash, which was a significant catalyst for the accretive combination with Portman Ridge announced in January. This exit was a major achievement in our long-term strategy to rotate out of our legacy equity portfolio, which has been a central focus to the turnaround strategy for Logan Ridge. Further building on our success, I'm very pleased to announce that in February of 2025, we exited our second largest non-yielding equity investment in GA Communications. We also ended the year with no new non-accruals during the fourth quarter of 2024. Additionally, during 2024, we further strengthened our balance sheet by successfully amending and extending our revolving credit facility with KeyBank. The amendment further turned out our debt capital structure and reduced our cost of financing while also increasing our financial flexibility. The culmination of these collective achievements paved the way for a combination with Portman Ridge Finance Corporation, which the board approved in January. A successful combination of the two companies will be a significant milestone for BC Credit, BC Partners' credit platform, we believe will be accretive for both sets of shareholders. We believe this combination has the potential to provide greater scale, improved operating efficiencies, and increased trading volume in the stock, all of which should create incremental value for shareholders. The next step towards the completion of the merger is the special meeting of shareholders where investors will be asked to vote to approve the merger after the N14 is declared effective by the SEC. We invite our shareholders to vote for the merger when they receive their proxy card. Both Portman and Logan's board of directors have unanimously recommended that shareholders vote for the merger. Due to the strong financial and operational performance seen in 2024, the board of directors approved a dividend of 36 cents per share for the fourth quarter 2024, which remains flat to the prior quarter. Selecting on the year, we are incredibly proud of what we were able to accomplish. Looking ahead, we expect to remain active in the market with a healthy deployment pipeline, our disciplined and prudent investment strategy, and our experienced management team, we believe we are well-positioned to continue delivering meaningful returns to our stakeholders. With that, I will turn the call over to Patrick to discuss our portfolio and investment activities.

Thanks, Ted, and hello, everyone. As of December 31, 2024, the fair value of Logan's portfolio was approximately $172.3 million, with exposure to 59 portfolio companies. This compares to 59 portfolio companies with a fair value of approximately $75.6 million as of the prior quarter and 64 portfolio companies with a fair value of $189.7 million as of December 31, 2023. During the year ended December 31, 2024, We continue to be selective in our investment strategy. We deployed approximately $38.3 million in new and existing investments and had approximately $55 million in repayments and sales, resulting in net repayments and sales of approximately $16.7 million for the year. Of note, net deployments reflect the $17.5 million of proceeds from nth degree received in late Q3 and $5.3 million of repayment from critical nurse, which was received on the last day of the year. Now on to portfolio composition. As of December 31, 2024, 66.7% of the company's investment portfolio at fair value was invested in assets originated by the BC Partners credit platform, up from 65.4% at the end of last year. Also, as of December 31, 2024, our debt investment portfolio represented 83.3% of the total portfolio at fair value with a weighted average annualized yield of approximately 10.7%. excluding income from non-accruals and collateralized loan obligations. And 87.9% of our debt investment portfolio at fair value was bearing interest at a floating rate. Additionally, as of December 31st, 2024, First lien debt represented 64.4% and 64.7% of our total portfolio on a cost and fair value basis, respectively. And the equity portfolio represented 13.4% and 13.8% of the portfolio on a cost and fair value basis, respectively, as of December 31, 2024. Moving on to non-accrual status, as of December 31, 2024, the company had four debt investments across three portfolio companies on non-accrual status with an aggregate amortized cost and fair value of $17.2 million and $7.9 million, respectively, or 9.0% and 4.6% of the investment portfolio at cost and fair value, respectively. This has remained relatively stable since the third quarter of 2024, with four debt investments in three portfolio companies with a cost and fair value of $17.2 million and $8.2 million, respectively, or 8.8% and 4.6% of the investment portfolio's cost and fair value, respectively. And I'll turn the call over to Brandon.