Month: May 2022

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Stock futures rise as indexes aim to pare weekly losses

Stock futures rise as indexes aim to pare weekly losses

U.S. stocks gained Friday, shaking off some losses from earlier this week after concerns over persistent inflation and the resilience of the U.S. economy stirred up further volatility in recent sessions.

The S&P 500 rose by more than 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} intraday on Friday while the Nasdaq jumped by nearly 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Dow added more than 350 points. The sharp move higher came after Federal Reserve Chair Jerome Powell reaffirmed in an interview with Marketplace public radio on Thursday that two more 50 basis point rate hikes were on the table for the next two Fed meetings, and that officials were not “actively considering” a more aggressive 75 basis point hike. His comments echoed what other Fed officials also said this week.

Just a day earlier, the S&P 500 had closed within striking distance of a bear market, typically defined as a close of at least 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from a recent record high. The index has declined by just over 18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from its Jan. 3 record high through Thursday’s close, and it paced toward a weekly drop of 4.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} if levels hold through the end of Friday’s session.

The Dow Jones Industrial Average and Nasdaq Composite each also headed for weekly losses of 3.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 6.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively, based on Thursday’s closing prices. Treasury yields have spiked and then pared gains back this week, with the benchmark 10-year Treasury yield hovering around 2.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Friday morning. Bitcoin prices recovered to trade above $30,000 after setting the lowest level since Dec. 2020, as a cratering in prices of Luna further reverberated across the broader cryptocurrency market.

The market gyrations this week coincided with two major inflation reports that came in hotter-than-expected. Thursday’s Producer Price Index showed an 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year rise in wholesale prices last month, with this rate moderating only slightly from March’s all-time high rate of 11.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. And the Consumer Price Index released earlier this week showed a still-elevated 8.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annual increase in prices paid by consumers last month.

“Inflation has certainly become not only topical, but a real issue for the broader market, as the Fed has also increased its outlook for the number of [interest rate] hikes needed,” Sonali Pier, managing director and portfolio manager at Pimco, told Yahoo Finance Live on Thursday. “In terms of the effect of inflation, it’s really at this point, we’re going to see if the Fed raising rates, unwinding some of the balance sheet, can take off some of that inflation froth. Because it’s quite high, and it’s starting to impact companies — from their ability to push through from a pricing power perspective, as well as consumers, whether that’s at the gas pump or as a result of food increases and the like.”

Other strategists agreed that the Fed’s response to inflation — and how well the economy holds up as the Fed tightens financial conditions to address inflation — will be the key factor to watch going forward for the markets.

“We’re in an environment right now where inflation is high. The labor market is very tight. The Fed wants to bring inflation down. They want to sort of cool the overheating in the labor market, which means their bias is to tighten financial conditions and try and slow growth,” Jason Draho, UBS Head of Asset Allocation, said on Thursday. “In that environment, it’s not great for any sort of financial assets.”

“[Once] we get some sort of real break on inflation that people become much more comfortable that it’s moderating, and moderating [to] a sustainable level that the Fed could be more comfortable, and they don’t have to hike more aggressively … I think that’s the key catalyst,” Draho said. “Unfortunately, that might take a few more months before the data starts to clearly show inflation is definitely below its peak, and the Fed could achieve its target two years out.”

“So I think for the time being, it’s definitely a choppy market,” he added.

—

10:15 a.m. ET: Consumer sentiment drops to lowest level since 2011: University of Michigan

Consumer sentiment fell to a more than decade low in early May, according to the University of Michigan, as concerns around inflation persisted.

The University of Michigan’s closely watched Surveys of Consumers index dropped to 59.1 in the preliminary May report, declining sharply from April’s reading of 65.2. The latest reading marked the lowest since 2011.

The sentiment declines “were broad based — for current economic conditions as well as consumer expectations, and visible across income, age, education, geography, and political affiliation—continuing the general downward trend in sentiment over the past year,” Joanne Hsu, director of the Surveys of Consumers, said in a press statement. “Consumers’ assessment of their current financial situation relative to a year ago is at its lowest reading since 2013, with 36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of consumers attributing their negative assessment to inflation.”

Consumers’ inflation expectations remained elevated in May, with the survey showing one-year inflation expectations were unchanged at 5.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. However, some strategists suggested the drop in risk assets over the past several weeks played an even larger role in the drop in the headline index.

“I would argue that the drop was largely a function of the plunge in stock prices. We know U. Mich is more sensitive to markets,” Neil Dutta, head of economics at Renaissance Macro Research, wrote in an email Friday morning. “Inflation is an issue sure but the inflation expectations series were unchanged.”

—

9:33 a.m. ET: Stocks open higher

Here were the main moves in markets as of 9:33 a.m. ET:

  • S&P 500 (^GSPC): +43.33 (+1.10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,973.41

  • Dow (^DJI): +241.55 (+0.76{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,971.85

  • Nasdaq (^IXIC): +189.64 (+1.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,560.61

  • Crude (CL=F): +$3.05 (+2.87{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $109.18 a barrel

  • Gold (GC=F): -$24.60 (-1.35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,800.00 per ounce

  • 10-year Treasury (^TNX): +9.8 bps to yield 2.9150{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

7:54 a.m. ET: Tesla shares jump in early trading after Musk says Twitter deal on pause

Shares of Tesla (TSLA) jumped by more than 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} ahead of the opening bell Friday morning after CEO Elon Musk said his $44 billion plan to purchase Twitter (TWTR) was temporarily paused, pending more details over how much of Twitter’s use base comprises bot accounts.

“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of users,” Musk said in a Twitter post early Friday. He linked to a Reuters story suggesting Twitter filings showed fake or spam accounts made up fewer than 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the company’s monetizable daily active users.

In announcing his deal to buy Twitter over the past month, Musk has suggested targeting bot accounts and authenticating users was one of his priorities for the company post-deal.

Twitter shares sank 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early trading to hover around $40 apiece.

—

7:45 a.m. ET Friday: Stock futures jump after Powell reaffirms 75 basis point rate hikes not currently under discussion

Here’s where markets were trading ahead of the opening bell Friday morning:

  • S&P 500 futures (ES=F): +46 points (+1.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,973.25

  • Dow futures (YM=F): +262.00 points (+0.83{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,914.00

  • Nasdaq futures (NQ=F): +206.75 points (+1.73{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 12,154.00

  • Crude (CL=F): +$1.79 (+1.69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $107.92 a barrel

  • Gold (GC=F): -$7.90 (-0.43{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,816.70 per ounce

  • 10-year Treasury (^TNX): +9.8 bps to yield 2.915{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:10 p.m. ET Thursday: Stocks open lower

Here’s where markets were trading Thursday evening:

  • S&P 500 futures (ES=F): -10 points (-0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 3,917.25

  • Dow futures (YM=F): -73 points (-0.23{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 31,579.00

  • Nasdaq futures (NQ=F): -41 points (-0.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 11,906.25

NEW YORK, NEW YORK - MAY 12: Traders work on the floor of the New York Stock Exchange (NYSE) on May 12, 2022 in New York City. The Dow Jones Industrial Average fell in morning trading as investors continue to worry about inflation and other global issues. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – MAY 12: Traders work on the floor of the New York Stock Exchange (NYSE) on May 12, 2022 in New York City. The Dow Jones Industrial Average fell in morning trading as investors continue to worry about inflation and other global issues. (Photo by Spencer Platt/Getty Images)

—

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter.

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Logan Ridge Finance Corporation Reports First Quarter 2022

Logan Ridge Finance Corporation Reports First Quarter 2022

NEW YORK, May 12, 2022 (GLOBE NEWSWIRE) — Logan Ridge Finance Corporation (“LRFC” or the “Company”) (Nasdaq: LRFC) today announced its financial results for the first quarter ended March 31, 2022.

First Quarter 2022 Overview

  • Net asset value as of quarter end declined slightly to $106.2 million, or $39.16 per share, compared to $107.1 million, or $39.48 per share, as of December 31, 2021, despite general market conditions deteriorating and credit spreads widening.
  • The fair value of the Company’s investment portfolio grew by $8.7 million to $206.9 million as of March 31, 2022 from $198.2 million as of the prior quarter, due to net unrealized appreciation and net deployment.
  • The Company continued to judiciously redeploy capital generated from exiting the legacy portfolio, with cash decreasing by $23.2 million to $15.8 million as of March 31, 2022, from $39.1 million as of the prior quarter end.
  • During the first quarter of 2022, the Company made approximately $16.4 million of investments and had approximately $8.4 million in repayments and sales, resulting in net deployment of approximately $8.0 million for the period.
  • As of March 31, 2022, our debt investment portfolio, which represented 68.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of our total portfolio at fair value, had a weighted average annualized yield of approximately 8.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} (excluding non-accruals and collateralized loan obligations). This compares to our debt investment portfolio which represented 67.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of our total portfolio at fair value as of December 31, 2021, which had a weighted average annualized yield of approximately 8.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} (excluding non-accruals and collateralized loan obligations).
  • As of March 31, 2022, we had debt investments in two portfolio companies on non-accrual status with an aggregate cost of $12.7 million and fair value of $7.0 million, which represented 6.4 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 3.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the investment portfolio, respectively. This compared to debt investments in two portfolio companies on non-accrual status with aggregate amortized cost of $12.7 million and an aggregate fair value of $7.6 million, which represented 6.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 3.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the investment portfolio, respectively, as of December 31, 2021.
  • As of March 31, 2022, our debt-to-equity ratio was 1.18x as compared to 1.17x as of December 31, 2021.

Management Commentary
Ted Goldthorpe, Chief Executive Officer and President of LRFC, said, “Overall, we had a productive first quarter with our net asset value remaining relatively stable, especially considering the turbulence in the global markets. Despite external factors such as the war in Ukraine, inflation, and rising interest rates, we were able to stay consistent with our reinvestments. Furthermore, as we recently announced, during the second quarter we successfully refinanced Logan Ridge’s legacy capital structure, which materially lowered our cost of capital, by leveraging the size and scale of our platform and the strong working relationships we have with our lenders. We believe that we are well-positioned for a stronger 2022.”

Recent Developments:
Since the end of the first quarter, we successfully completed the refinancing of the entire legacy capital structure, one of our key strategic initiatives.

  • On April 1, 2022, we entered into a Note Purchase Agreement for the issuance of $15.0 million Convertible Notes due in April 2032. The Convertible Notes have a fixed interest rate of 5.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} per annum.
  • On May 10, 2022, we amended our existing senior secured revolving credit agreement with KeyBank (“KeyBank Credit Facility”), increasing the initial commitment from $25.0 million to $75.0 million, with an uncommitted accordion feature that would allow the Company to borrow up to an additional $125.0 million. The amended KeyBank Credit Facility will mature on May 10, 2027. Borrowings under the amended KeyBank Credit Facility will bear interest at a floating forward-looking term rate equal to term SOFR plus an applicable margin of 2.90{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, with 0.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} SOFR Floor, during the 3-year revolving period and 3.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, with 0.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} SOFR Floor thereafter. This compares to the current facility which bore interest at LIBOR plus 3.50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, subject to a minimum rate of 4.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

This materially lowers the Company’s cost of capital. The proceeds will be used to pay off the $52.1 million of 5.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} convertible notes outstanding as well as the remaining $22.8 million of 6.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} notes outstanding, both of which mature May 31, 2022.

Selected Financial Highlights

  • Total investment income was $3.3 million for the first quarter of 2022, compared to $4.9 million for the first quarter of 2021. The decline was due primarily to lower average outstanding debt investments compared to the prior quarter.
  • Total expenses for the first quarter of 2022 were $4.4 million, compared to $5.7 million for the first quarter of 2021. Interest and financing fees decreased by $0.8 million, management fees decreased by $0.4 million while other general and administrative costs increased by $0.1 million compared to the prior quarter. The decrease in expenses quarter-to-quarter is driven primarily by lower interest and financing expenses and partially by lower base management fees.
  • Net investment loss for the first quarter decreased $0.2 million to $1.1 million compared to $1.4 million during the three months ended December 31, 2021.
  • Net realized losses on our portfolio were less than $0.1 million, or $(0.01) per share, for the quarter ended March 31, 2022. This compares to net realized losses of $14.0 million, or $(5.17) per share, during the three months ended March 31, 2021.
  • During the quarters ended March 31, 2022 and 2021, the Company report $0.2 million and $27.2 million of net change in unrealized appreciation investments, respectively.
  • The Company had a decrease in net assets resulting from operations of $0.9 million, or $(0.32) per share, during the first quarter of 2022. This compares to a net increase in net asset from operations of $12.4 million, or $4.56 per share ($4.04 diluted), for the first quarter of 2021.

The following table summarizes the amortized cost and the fair value of investments as of March 31, 2022:

($ in thousands)   Investments at
Amortized Cost		     Amortized Cost
Percentage of
Total Portfolio		     Investments at
Fair Value		     Fair Value
Percentage of
Total Portfolio		  
First Lien Debt   $ 106,929       53.7 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}   $ 100,663       48.7 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Second Lien Debt     33,168       16.7 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}     33,220       16.1 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Subordinated Debt     7,117       3.6 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}     7,115       3.4 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Collateralized Loan Obligations     8,106       4.1 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}     7,199       3.5 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Equity and Warrants     43,649       21.9 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}     58,708       28.3 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Total   $ 198,969       100.0 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}   $ 206,905       100.0 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
                                 

The following table summarizes the amortized cost and the fair value of investments as of December 31, 2021:

($ in thousands)   Investments at
Amortized Cost		     Amortized Cost
Percentage of
Total Portfolio		     Investments at
Fair Value		     Fair Value
Percentage of
Total Portfolio		  
First Lien Debt   $ 103,667       54.4 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}   $ 98,251       49.6 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Second Lien Debt     30,048       15.8 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}     30,190       15.2 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Subordinated Debt     5,050       2.6 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}     5,050       2.6 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Equity and Warrants     51,717       27.2 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}     64,698       32.6 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Total   $ 190,482       100.0 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}   $ 198,189       100.0 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
                                 

Interest Rate Risk
Based on our March 31, 2022 consolidated statement of assets and liabilities, the following table shows the annual impact on net income (excluding the potential related incentive fee impact) of base rate changes in interest rates (considering interest rate floors for variable rate securities) assuming no changes in our investment and borrowing structure:

Basis Point Change
($ in thousands)		 Increase
(decrease) in interest income		     (Increase)
decrease in
interest expense		     Increase
(decrease) in
net income		  
Up 300 basis points $ 2,258     $ —     $ 2,258  
Up 200 basis points   1,374       —       1,374  
Up 100 basis points   605       —       605  
Down 100 basis points   (135 )     —       (135 )
Down 200 basis points   (135 )     —       (135 )
Down 300 basis points   (135 )     —       (135 )
                       

Conference Call and Webcast
LRFC will discuss these results in a conference call on Friday, May 13, 2022 at 9:00 am ET.

To access the conference call, please dial (844) 616-4517 approximately 10 minutes prior to the start of the conference call and use the conference ID 3899999. A replay of the conference call will be available from May 13 through May 20. The dial in number for the replay is (855) 859-2056 and the conference ID is 3899999.

A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis on the Company’s website, loganridgefinance.com, in the Investor Relations section, under Events and Presentations. The webcast can also be accessed by clicking the following link: Logan Ridge First Quarter 2022 Conference Call. The online archive of the webcast will be available on the Company’s website shortly after the call.

About Logan Ridge Finance Corporation
Logan Ridge Finance Corporation (Nasdaq: LRFC) is a business development company that invests primarily in first lien loans and, to a lesser extent, second lien loans and equity securities issued by lower middle market companies. The Company invests in performing, well-established middle market businesses that operate across a wide range of industries. It employs fundamental credit analysis, targeting investments in businesses with relatively low levels of cyclicality and operating risk. For more information, visit loganridgefinance.com.

About Mount Logan Capital Inc.
Mount Logan Capital Inc. is an alternative asset management company that is focused on public and private debt securities in the North American market. The Company seeks to source and actively manage loans and other debt-like securities with credit-oriented characteristics. The Company actively sources, evaluates, underwrites, manages, monitors and primarily invests in loans, debt securities, and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.

About BC Partners Advisors L.P. and BC Partners Credit
BC Partners is a leading international investment firm with over $40 billion of assets under management in private equity, private credit and real estate strategies. Established in 1986, BC Partners has played an active role in developing the European buyout market for three decades. Today, BC Partners executives operate across markets as an integrated team through the firm’s offices in North America and Europe. Since inception, BC Partners has completed 117 private equity investments in companies with a total enterprise value of €149 billion and is currently investing its eleventh private equity fund.

BC Partners Credit was launched in February 2017 and has pursued a strategy focused on identifying attractive credit opportunities in any market environment and across sectors, leveraging the deal sourcing and infrastructure made available from BC Partners.

Cautionary Statement Regarding Forward-Looking Statements
This communication contains “forward-looking” statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include those risk factors detailed in the Company’s reports filed with the Securities and Exchange Commission (“SEC”), including the Company’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC.

Any forward-looking statements speak only as of the date of this communication. The Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information or developments, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

For additional information, contact:

Logan Ridge Finance Corporation
650 Madison Avenue, 23rd Floor
New York, NY 10022

Jason Roos
Chief Financial Officer
Jason.Roos@bcpartners.com
(212) 891-5046

The Equity Group Inc.
Lena Cati
lcati@equityny.com
(212) 836-9611

Serena Liegey
sliegey@equityny.com
(212) 836-9630

Logan Ridge Finance Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)

    As of March 31,     As of December 31,  
    2022     2021  
    (unaudited)        
ASSETS            
Investments at fair value:            
Non-control/non-affiliate investments (amortized cost of $140,329 and $131,829, respectively)     137,341     $ 129,991  
Affiliate investments (amortized cost of $49,790 and $49,803, respectively)     62,649       61,359  
Control investments (amortized cost of $8,850 and $8,850, respectively)     6,915       6,839  
Total investments at fair value (amortized cost of $198,969 and $190,482, respectively)     206,905       198,189  
Cash and cash equivalents     15,838       39,056  
Interest and dividend receivable     1,025       929  
Prepaid expenses     3,137       3,358  
Receivable for unsettled trades     7,086       685  
Total assets   $ 233,991     $ 242,217  
LIABILITIES            
2022 Notes (net of deferred financing costs of $18 and $46, respectively)   $ 22,815     $ 22,787  
2022 Convertible Notes (net of deferred financing costs of $67 and $167, respectively)     52,020       51,921  
2026 Notes (net of deferred financing costs and original issue discount of $1,540 and $1,552, respectively)     48,460       48,448  
KeyBank Credit Facility (net of deferred financing costs of $305 and $353, respectively)     (305 )     (353 )
Management and incentive fees payable     1,027       1,065  
Interest and financing fees payable     1,595       911  
Payable for unsettled trades     1,478       9,265  
Accounts payable and accrued expenses     730       1,144  
Total liabilities   $ 127,820     $ 135,188  
Commitments and contingencies            
NET ASSETS            
Common stock, par value $0.01, 100,000,000 common shares authorized, 2,711,068 and 2,711,068 common shares issued and outstanding, respectively   $ 27     $ 27  
Additional paid in capital     188,846       188,846  
Total distributable loss     (82,702 )     (81,844 )
Total net assets   $ 106,171     $ 107,029  
Total liabilities and net assets   $ 233,991     $ 242,217  
Net asset value per share   $ 39.16     $ 39.48  
                 

Logan Ridge Finance Corporation
Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)

    For the Three Months Ended March 31,  
    2022     2021  
INVESTMENT INCOME            
Interest income:            
Non-control/non-affiliate investments   $ 2,383     $ 3,197  
Affiliate investments     719       1,297  
Control investments     95       98  
Total interest and fee income     3,197       4,592  
Payment-in-kind interest and dividend income:            
Non-control/non-affiliate investments     85       71  
Affiliate investments     47       99  
Total payment-in-kind interest and dividend income     132       170  
Dividend income:            
Affiliate investments     —       155  
Total dividend income     —       155  
Other income:            
Affiliate investments     8       9  
Total other income     8       9  
Total investment income     3,337       4,926  
EXPENSES            
Interest and financing expenses     2,188       3,037  
Base management fee     1,027       1,398  
Directors expense     103       103  
Administrative service fees     120       350  
General and administrative expenses     950       821  
Total expenses     4,388       5,709  
NET INVESTMENT LOSS     (1,051 )     (783 )
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS            
Net realized loss on investments:            
Non-control/non-affiliate investments     (36 )     (14,023 )
Net realized loss on investments     (36 )     (14,023 )
Net change in unrealized appreciation on investments:            
Non-control/non-affiliate investments     (1,150 )     23,212  
Affiliate investments     1,303       3,972  
Control investments     76       (24 )
Net change in unrealized appreciation on investments     229       27,160  
Total net realized and unrealized gain on investments     193       13,137  
NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS   $ (858 )   $ 12,354  
NET (DECREASE) INCREASE IN NET ASSETS PER SHARE RESULTING FROM OPERATIONS – BASIC   $ (0.32 )   $ 4.56  
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING – BASIC     2,711,068       2,711,068  
NET (DECREASE) INCREASE IN NET ASSETS PER SHARE RESULTING FROM OPERATIONS – DILUTED   $ (0.32 )   $ 4.04  
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING – DILUTED     2,711,068       3,263,647  
DISTRIBUTIONS PAID PER SHARE   $ —     $ —  
                 

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May 2022 Katten Financial Markets and Funds Developments

May 2022 Katten Financial Markets and Funds Developments

SEC Reopens/Extends Remark Interval on Significant Rule Proposals, Such as Private Fund Adviser Proposals

The Securities and Trade Fee (SEC) declared it is extending the general public comment period of time on the proposed rulemaking to enrich and standardize climate-connected disclosures for buyers until June 17. The SEC also declared that it will reopen the comment durations on the proposed rulemaking to enrich private fund trader security and on the proposed rulemaking to consist of substantial Treasury marketplaces platforms inside Regulation ATS for 30 days. Examine the SEC’s announcement.

SEC’S Division of Examinations Risk Notify on MNPI and Code of Ethics Compliance

On April 26, the Securities and Trade Commission’s (SEC) Division of Examinations (Examinations) published a Possibility Notify on deficiencies observed by Tests workers in their exams of financial commitment advisers associated to Portion 204A of the Investment decision Advisers Act of 1940 (Advisers Act). Area 204A needs all financial investment advisers, registered and unregistered, to set up, keep and implement published policies and procedures that are moderately developed, having into thing to consider the character of the adviser’s small business, to stop the misuse of material non-general public facts (MNPI). Examples of regions in which deficiencies have been noticed by Exams staff members involve:

  • use of pro networks
  • use of alternative details by private fund administrators and other investment decision advisers and
  • “value-add traders,” who are clientele or fund traders that are corporate executives or economical specialist buyers who may perhaps have MNPI.

The Chance Inform also talked over deficiencies associated with the Code of Ethics Rule (Rule 204A-1 beneath Advisers Act) determined by Tests team.

Financial investment advisers really should cautiously critique the Possibility Inform and evaluate their compliance insurance policies and procedures and practices concentrating on the difficulties lifted in the Possibility Warn to decide whether these policies and methods are reasonably intended to avert the misuse of MNPI. Study the total Possibility Warn.

SEC Chairman Raises Multiple Problems Concerning Crypto Buying and selling Platforms, Token Issuers and Stablecoins

Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), raised several considerations pertaining to crypto trading platforms, token issuers in common, and stablecoins in unique, all through a presentation prior to the College of Pennsylvania Regulation University on April 4. Chairman Gensler said that, for the reason that crypto trading platforms are “most likely trading securities,” he has directed SEC employees to undertake numerous outlined initiatives. These involve: (1) having the platforms … registered and controlled significantly like exchanges (2) assessing how ideal to make certain the safety of customer assets on these exchanges, and in particular whether it would be acceptable to segregate out custody and (3) working with the Commodity Futures Investing Commission to contemplate how greatest to sign-up and regulate platforms in which the trading of securities and non-securities is intertwined. Chairman Gensler did not distinguish concerning centralized and decentralized buying and selling platforms in laying out his initiatives, noting that his concerns utilize to crypto trading and lending platforms, irrespective of whether they call on their own centralized or decentralized (DeFI). Study about Chairman Gensler’s comments.

FINRA Regulatory See on Product sales Practice Obligations for Complicated Goods

The Financial Sector Regulatory Authority (FINRA) lately issued Regulatory See 22-08, which reminds FINRA associates of their sales observe obligations for intricate products and selections and solicits remark on productive techniques and rule enhancements. The comment period of time ends on May well 9. FINRA is worried that traders — in particular all those working with a selfdirected platform — may perhaps not have the economic experience to realize complicated products and their linked risks or that the investment decision may possibly perform in unexpected means in numerous marketplace or financial conditions. This new guidance is well timed because of the significantly enhanced investing in complicated merchandise, with additional investors investing these items on-line, and the software of Regulation Greatest Interest. Browse about the regulatory recognize.

FDIC Needs Reporting of Crypto-Linked Activities

Any Federal Deposit Insurance policy Corporation (FDIC)-supervised establishment that is thinking of partaking in crypto-similar activity need to now notify the FDIC of its intent and deliver all important data to create a dialogue with the company about the dangers relevant to this sort of exercise. This prerequisite follows the FDIC’s issuance of a economic institution letter (FIL) on April 7 to all FDIC-supervised monetary institutions (namely, point out-chartered banking companies that are not customers of the Federal Reserve System) requiring notification to the company if the establishment is engaged or intends to engage in crypto-similar pursuits. Read through the total advisory.

SEC Proposes Weather-Related Disclosure Specifications

On March 21, the Securities and Trade Commission (SEC) proposed rule adjustments that would require community organizations to include specific weather-connected disclosure in their registration statements and periodic stories. The proposed rule would require community firms to disclose data about local weather-related dangers that are moderately very likely to have a content impact on their firms, results of functions or fiscal disorders. Also, community corporations would be essential to disclose their greenhouse fuel emissions (GHG Emissions) and to include sure weather-linked metrics in their financial statements. Examine the total report.

SEC’s Local climate-Associated Remark Letters – Steering clear of Probable Pitfalls

In September 2021, the Securities and Trade Fee (SEC) presented a sample remark letter that integrated nine opportunity local weather-related reviews the SEC may perhaps concern to providers concerning their weather-relevant disclosure or the absence of these disclosure. The SEC has a short while ago began to release the remark letters and responses. Katten attorneys reviewed the climate-relevant remark letters not associated to a securities providing by way of April 24 and identified tendencies and some crucial takeaways that corporations can take into consideration to perhaps lessen their securities compliance expenditures related to these local climate-transform remark letters. Go through the whole write-up. 

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Latest Earnings, Stocks and Business News for May 11, 2022

Latest Earnings, Stocks and Business News for May 11, 2022
Credit score…Kamil Krzaczynski/Reuters

Rivian, the electric powered-motor vehicle maker that went public very last calendar year with massive ambitions to acquire on Tesla and some others, claimed Wednesday that offer-chain complications had hobbled it in the first quarter, but it stood by its production forecast for this calendar year.

The company’s shares have declined above 80 p.c this year as traders have grown nervous about its prospective customers. The cost rose 7 percent in following-hours trading on Wednesday as the quarterly results largely satisfied forecasts.

Rivian detailed persistent problems in obtaining semiconductors and other parts. And because the close of March, the firm mentioned, the shortages have compelled it “to cease creation for lengthier durations than anticipated, ensuing in approximately a quarter of the planned generation time getting lost thanks to provider constraints.”

Rivian claimed it foresaw earning 25,000 vehicles this yr, a forecast it manufactured in March. With no the source constraints, the company mentioned in March that it could develop twice that quite a few.

The output so considerably totals 5,000. “We have performed all this in one particular of the most demanding running environments in many years,” R.J. Scaringe, Rivian’s main executive, reported on a get in touch with with analysts immediately after the quarterly effects had been launched.

All motor vehicle firms are experiencing provide-chain constraints, but lesser kinds like Rivian that absence extensive-term interactions with suppliers could find it more challenging to cope. The difficulties pose additional of a risk to newer carmakers, which may well have difficulties gaining a considerable share of the electrical-automobile industry just before much more founded firms introduce scores of merchandise in the coming yrs.

Provided this sort of obstructions, traders will be observing for any symptoms that Rivian may tumble shorter of its 2022 manufacturing target. “It’s still achievable, but it could be a stretch,” claimed Garrett Nelson, an analyst at the investigate agency CFRA who addresses Rivian. He additional that the plunge in Rivian’s stock sector price could make it a takeover goal for a organization that wanted to get into the electric-car industry.

Rivian noted a web loss of $1.6 billion in the initial quarter on gross sales of just $95 million. In the to start with quarter of past year, Rivian had no product sales and a reduction of $414 million. The firm is reporting significant losses due to the fact it is spending enormous sums to scale up generation of its three autos: a truck made generally for leisure pursuits, a sport utility vehicle and a delivery van for Amazon, an early trader in Rivian and a major shareholder.

The organization mentioned it had a lot more than 90,000 orders for its truck and its S.U.V., when compared with all over 83,000 in March.

Amazon has ordered 100,000 supply vans, but Rivian has been unwilling to say how quite a few it has transported. On Wednesday, it stated only that it was “ramping output and deliveries.” On the connect with with analysts, Mr. Scaringe said he expected the vans to make up roughly a 3rd of the 25,000 cars in the 2022 creation forecast.

In a lot of techniques, Rivian epitomizes the sharp change to bearishness in the inventory market this calendar year.

In November, investors piled into its first general public featuring, in which the firm raised $13.5 billion, and its shares then soared, briefly supplying Rivian a stock current market worth that was virtually as significant as those people of Ford Motor and General Motors merged.

But the inventory plunged this year soon after the company lower its creation targets. The 80 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} drop in Rivian’s shares is much steeper than a 31 percent drop in Tesla’s inventory around the same period and a 38 per cent drop for Ford, which is introducing its individual electrical truck.

Rivian will make vehicles in Standard, Ill., and strategies a different factory in Ga. Creating and running assembly traces needs huge quantities of money, which is why new car providers can operate into dire money straits if manufacturing lags and gross sales fall limited. Even Tesla, which sells additional electrical cars and trucks than any other enterprise, occasionally identified itself managing reduced on cash.

In the initial quarter, Rivian used up $1.45 billion in money jogging its enterprise and investing in new services and tools, substantially more than the $800 million it eaten in the initially quarter of 2021. The enterprise experienced $16.4 billion in money on its equilibrium sheet at the finish of the first quarter, down from $18.1 billion at the end of previous 12 months.

The decline in Rivian stock slashed the worth of the stakes held by its most significant shareholders. Amazon’s 18 percent stake is really worth $3.2 billion, down from $16.8 billion at the start of the yr. Ford, another early trader, offered some of its shares on Monday, and its remaining stake is really worth $1.9 billion. It would have been value $9.7 billion at the stop of previous calendar year.

Rivian mentioned it took much more than 10,000 orders for its truck and its S.U.V. immediately after it raised price ranges in March. All those orders had an ordinary rate of above $93,000, the enterprise included.

But mainly because Rivian’s autos sell for relatively substantial price ranges, analysts wondered how a great deal demand from customers there may possibly be if inflation continued to try to eat absent at households’ shelling out electrical power. “It remains to be noticed how substantially hunger customers have for a value tag of a Rivian,” Mr. Nelson claimed.

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Jefferies Financial Group Research Analysts Raise Earnings Estimates for Progyny, Inc. (NASDAQ:PGNY)

Jefferies Financial Group Research Analysts Raise Earnings Estimates for Progyny, Inc. (NASDAQ:PGNY)

Progyny, Inc. (NASDAQ:PGNY – Get Rating) – Investment analysts at Jefferies Financial Group increased their FY2023 earnings estimates for Progyny in a report issued on Monday, May 9th. Jefferies Financial Group analyst G. Santangelo now expects that the company will earn $0.77 per share for the year, up from their prior estimate of $0.75.

A number of other equities research analysts have also recently commented on PGNY. TheStreet cut shares of Progyny from a “c-” rating to a “d+” rating in a report on Friday, January 28th. Zacks Investment Research upgraded shares of Progyny from a “hold” rating to a “buy” rating and set a $38.00 price target on the stock in a report on Thursday. Two research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $65.86.

Shares of NASDAQ PGNY opened at $33.06 on Thursday. The company has a 50 day simple moving average of $43.91 and a two-hundred day simple moving average of $46.82. Progyny has a fifty-two week low of $32.06 and a fifty-two week high of $68.32. The company has a market capitalization of $3.03 billion, a price-to-earnings ratio of 59.04, a P/E/G ratio of 12.42 and a beta of 2.01.

Progyny (NASDAQ:PGNY – Get Rating) last announced its earnings results on Monday, February 28th. The company reported $0.15 earnings per share for the quarter, beating analysts’ consensus estimates of $0.04 by $0.11. Progyny had a net margin of 10.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and a return on equity of 24.50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The business had revenue of $127.55 million during the quarter, compared to the consensus estimate of $134.87 million. During the same quarter last year, the firm earned $0.07 earnings per share. The business’s revenue for the quarter was up 27.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on a year-over-year basis.

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. First Horizon Advisors Inc. raised its position in Progyny by 1,469.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the fourth quarter. First Horizon Advisors Inc. now owns 769 shares of the company’s stock worth $38,000 after acquiring an additional 720 shares during the period. Fifth Third Bancorp raised its position in Progyny by 1,532.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the fourth quarter. Fifth Third Bancorp now owns 1,208 shares of the company’s stock worth $61,000 after acquiring an additional 1,134 shares during the period. Steward Partners Investment Advisory LLC raised its position in Progyny by 44.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the fourth quarter. Steward Partners Investment Advisory LLC now owns 1,209 shares of the company’s stock worth $61,000 after acquiring an additional 374 shares during the period. Exane Derivatives bought a new position in Progyny in the first quarter worth approximately $69,000. Finally, Captrust Financial Advisors raised its position in Progyny by 19.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the third quarter. Captrust Financial Advisors now owns 1,566 shares of the company’s stock worth $88,000 after acquiring an additional 251 shares during the period. Institutional investors and hedge funds own 82.51{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the company’s stock.

In related news, CEO Peter Anevski sold 600 shares of the firm’s stock in a transaction that occurred on Friday, February 11th. The shares were sold at an average price of $42.00, for a total value of $25,200.00. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Chairman David J. Schlanger sold 1,000 shares of the firm’s stock in a transaction that occurred on Friday, February 11th. The stock was sold at an average price of $42.00, for a total transaction of $42,000.00. The disclosure for this sale can be found here. Insiders sold 535,366 shares of company stock worth $22,823,122 in the last 90 days. 14.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the stock is currently owned by corporate insiders.

About Progyny (Get Rating)

Progyny, Inc, a benefits management company, specializes in fertility and family building benefits solutions for employers in the United States. Its fertility benefits solution includes differentiated benefits plan design, personalized concierge-style member support services, and selective network of fertility specialists.

See Also

Earnings History and Estimates for Progyny (NASDAQ:PGNY)



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Tradewind Finance announces US$ 1bln in funding globally

Tradewind Finance announces US$ 1bln in funding globally

Dubai, UAE: Top intercontinental trade finance firm Tradewind Finance has announced the completion of its US$1 billion funding for 2022 – a improvement that’s greatly predicted to noticeably bridge the money gap for exporters throughout the globe.

In accordance to the spokesperson, the extension of liquidity by the money move administration company proceeds to be instrumental in supporting exporters to scale up their pursuit of much-required expansion.

The funding will also enable exporters to spend supplemental cash into their organizations – from their workforce to ESG initiatives – as well as conveniently meet up with other equally-critical performing cash requirements.

“We are energized to announce the completion of US$1 billion funding for 2022. This is a phenomenal accomplishment not just for Tradewind Finance but most importantly for the many exporters who are experiencing funding bottlenecks and are not able to increase their businesses. This funding arrives at the appropriate time as most exporters are rebuilding their functions on the back again of a world wide wellbeing disaster. Sustainable business progress is an essential part, primarily in the exports company and we consider this funding is heading to give the exporters with the appropriate aid to scale up,” mentioned Peter Maerevoet, Worldwide CFO and Regional CEO for Asia at Tradewind Finance.

Tradewind Finance, which has a properly-diversified portfolio of purchasers spanning all continents, also expects additional funding of additional than US$3 billion by the conclusion of 2022. The supplemental resources will be applied to support export providers that trade internationally seamlessly navigate the present-day supply chain difficulties and be in a much better situation to contend proficiently.

The funding also offers providers prospects to extend their solution offerings, associate with massive-identify customers who inquire for more time payment phrases, and enter new marketplaces securely. In addition to the funding, its trade finance offers involve credit rating defense and collections services.

Export businesses that qualify for the funding will get among US$250,000 to US$30 million based mostly on the company’s specifications. In the UAE, Tradewind Finance has presented funding to businesses that export products, packaging, automotive components, and electronics with most of these providers getting purchasers located in the GCC area.

For above 20 several years, Tradewind Finance has aided export corporations in successfully meeting their economical obligations and necessities via the provision of funding. The money injection has, in transform, aided export firms to significantly improve their in general income flow, enabling them to scale up their export orders.

-Finishes-

About Tradewind Finance

Founded in 2000, Tradewind Finance maintains a network of workplaces all more than the world, including Bangladesh, Brazil, Bulgaria, China, Hong Kong SAR, Hungary, Iceland, India, Pakistan, Peru, Turkey, UAE, and the United states of america as perfectly as the headquarters in Germany. Combining financing, credit history defense, and collections into a one suite of trade finance merchandise, Tradewind delivers streamlined, adaptable, and finest-in-course services to the world’s exporters and importers.

For editorial enquiries, remember to get hold of Matrix PR
Krishika Mahesh – krishika@matrixdubai.com
Ambika Jadeja – ambika@matrixdubai.com