Logan Ridge Finance Corporation

Good morning and welcome to Logan Ridge Finance Corporation's first quarter-ended March 31, 2025 earnings conference call. An earnings press release was distributed yesterday, May 8, 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.loginridgefinance.com in the Investor Resources section and should be reviewed in conjunction with the company's Form 10-Q filed with the SEC. As a reminder, this conference call is being recorded for replay purposes. And 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 numbers of factors, including those describing the company's filings with the SAC. Speaking on today's call will be Ted Goldthorpe, Chief Executive Officer President and Director of Logan Ridge Finance Corporation, Brandon Satoran, Chief Financial Officer, and Patrick Schaefer, Chief Investment Officer. With that, I would like to turn the call over to Ted Goldthorpe, Chief Executive Officer of Logan Ridge Finance Corporation. Please go ahead, Ted.

Good morning. Welcome to our first quarter 2025 earnings call. As mentioned, I am joined today by our Chief Financial Officer, Brandon Satoran, and our Chief Investment Officer, Patrick Schaefer. Following my opening remarks, Patrick will provide additional details on our investment activity today, and Brandon will walk through the financials. Following record results in 2024, Logan Ridge continued to make significant strides in strengthening its portfolio, despite the large write-down on the company's legacy term loan, the Sequoia Healthcare. Notably, during the quarter, the company grew its portfolio with net deployment, and as previously announced, Logan Ridge continued rotating out of legacy equity portfolio with a successful exit of its second largest non-yielding equity investment, GA Communications. This exit stands as another important achievement in our long-term strategy to rotate out of the legacy equity portfolio, which has now been reduced to just 10.8% of our portfolio at fair value, down from 13.8% as of the prior quarter, and 18.2% in the first quarter of 2024. Looking forward, with the continued monetization of the legacy equity portfolio, we believe the company is well positioned to continue to grow earnings and increase long-term shareholder value as we navigate this dynamic market shaped by renewed uncertainty, increased market volatility, and shifting geopolitical dynamics. Finally, we remain very excited about the opportunities that the combination with Fort Monroe Ridge presents. This action offers the potential for increased scale, improved liquidity, and enhance operational efficiencies, all of which will strengthen our ability to deliver greater value to shareholders. Combination of these companies represents a significant milestone and is a culmination of years of work repositioning the portfolio that BC Partners Credit has executed since taking over as the external manager in 2021. We encourage all shareholders to attend the meeting and vote for the proposed merger as recommended by the board of directors of both companies. We're excited about the road ahead and look forward to sharing more updates soon. With that, I will turn the call over to Patrick Schaefer to discuss our portfolio and investment activities.

Patrick Schaefer Thanks, Ted. Hello, everyone. As of March 31, 2025, the fair value of Logan's portfolio was approximately $169.6 million with exposure to 59 portfolio companies. This compares to 59 portfolio companies with a fair value of approximately $172.3 million as of the prior quarter. As Ted mentioned, During the quarter ended March 31st, 2025, we continued to be selective in our investment strategy. We deployed approximately $15.1 million into new and existing investments and had approximately $12.5 million in repayments and sales, resulting in net deployment of approximately $2.7 million for the quarter. On portfolio composition, as of March 31st, 2025, 71.8% of the company's investment portfolio at fair value was invested in assets originated by the BC Partners credit platform, up from 66.7% at the end of last quarter. Also, as of March 31, 2025, our debt investment portfolio represented 86.6% of the total portfolio at fair value, the weighted average annualized yield of approximately 10.7%, excluding income from non-accruals and collateralized loan obligations. And 90.7% of our debt investment portfolio at fair value was bearing interest at a floating rate. Additionally, as of March 31, 2025, first lien debt represented 66.7% and 67.6% of our total portfolio on cost and fair value basis, respectively, while the equity portfolio was reduced to 12% from 10.8% of the portfolio on a cost and fair value basis, respectively. The reduction in the equity portfolio on a fair value basis during the first quarter of 2025 as compared to the previous quarter, was due to the exit of our second-largest non-yielding equity position in GA Communications, marking another milestone for our long-term strategy to rotate out of the legacy equity portfolio. On to non-accrual status, as of March 31, 2025, 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 $3.7 million, respectively. or 8.7 percent and 2.2 percent of the investment portfolio at cost and fair value, respectively. This has remained consistent with the fourth quarter of 2024 with the same four debt investments in three portfolio companies with a cost and fair value of $17.2 million and $7.9 million, respectively, or 9.0 percent and 4.6 percent of the investment portfolio's cost and fair value, respectively. And I'll turn the call over to Brandon.