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Fintech company Ripple has introduced a new assistance aimed at finance firms that will allow them to offer cryptocurrency trading to customers.
Ripple unveiled the Liquidity Hub services in a blog write-up on Tuesday, touting a “crypto-1st future” in which each and every corporation will need to have to have a technique for crypto property.
The new services will focus on its business customers, providing them accessibility to electronic property from a vary of suppliers these kinds of as exchanges, current market makers and above-the-counter trading desks. It is at present in the preview stage and will start in 2022.
Liquidity Hub will in the beginning assistance Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Ethereum Basic (Etcetera), Bitcoin Dollars (BCH) and XRP with availability different by geographical locale, according to the announcement.
The enterprise designs to develop its crypto asset choices and involve other tokens, like nonfungible tokens, or NFTs, in the upcoming.
RippleNet common manager Asheesh Birla reported that the firm has been applying this crypto sourcing technologies to guidance its On-Demand Liquidity product for virtually two many years. He included, “Our customers would want accessibility to the similar trustworthy one-stop-store for getting, marketing, and holding crypto assets that has driven our personal intensive perform with money institutions.”
America’s initially licensed Bitcoin ATM enterprise, Coinme, is the very first companion for the alpha edition of Liquidity Hub.
Related: ‘Overtime, we will see the NFT current market broaden,’ suggests Ripple CTO David Schwartz
Ripple is also delving deeper into decentralized finance, or DeFi, asserting designs to give crypto staking and financial investment products and services. Birla additional that it is only logical that clients will want the following generations of providers soon after shopping for and holding Ether.
On Saturday, Cointelegraph claimed that Ripple will be supporting wrapped XRP (wXRP) on the Ethereum community, enabling holders of its native token to interact with DeFi protocols.
The San Francisco-primarily based fintech agency is even now embroiled in an ongoing battle with the United States Securities and Exchange Commission. In the hottest turn in the saga, Magistrate Decide Sarah Netburn has purchased the firm to discover and make video clip and audio recordings of its interior conferences for proof in the scenario.
The financial regulator is suing Ripple and its executives for allegedly boosting extra than $1.3 billion as a result of an unregistered securities featuring.
Next step in transformation to realize full potential of each business
GE Aviation, GE Healthcare, and the combined GE Renewable Energy, GE Power, and GE Digital businesses to become three industry-leading, global, investment-grade public companies
GE intends to execute tax-free spin-offs of Healthcare in early 2023 and of the Renewable Energy and Power company in early 2024
Builds on significant momentum from strengthened financial position and operating performance
GE remains focused on driving operational improvement for sustainable profitable growth in the current portfolio of businesses, leading to high-single-digit free cash flow margins in 2023
GE will use proceeds from recently closed GECAS transaction to significantly reduce debt in the near future; remains committed to continued debt reduction along with strategic capital deployment
Company to host a call with investors at 8:15 am ET
BOSTON, November 09, 2021–(BUSINESS WIRE)–GE (NYSE:GE) today announced its plan to form three industry-leading, global public companies focused on the growth sectors of aviation, healthcare, and energy, by:
Pursuing a tax-free spin-off of GE Healthcare, creating a pure-play company at the center of precision health in early 2023, in which GE expects to retain a stake of 19.9 percent; and
Combining GE Renewable Energy, GE Power, and GE Digital into one business, positioned to lead the energy transition, and then pursuing a tax-free spin-off of this business in early 2024.
Following these transactions, GE will be an aviation-focused company shaping the future of flight.
As independently run companies, the businesses will be better positioned to deliver long-term growth and create value for customers, investors, and employees, with each benefitting from:
Deeper operational focus, accountability, and agility to meet customer needs;
Tailored capital allocation decisions in line with distinct strategies and industry-specific dynamics;
Strategic and financial flexibility to pursue growth opportunities;
Dedicated boards of directors with deep domain expertise;
Business- and industry-oriented career opportunities and incentives for employees; and
Distinct and compelling investment profiles appealing to broader, deeper investor bases.
GE Chairman and CEO H. Lawrence Culp, Jr. said, “At GE we have always taken immense pride in our purpose of building a world that works. The world demands—and deserves—we bring our best to solve the biggest challenges in flight, healthcare, and energy. By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors, and employees. We are putting our technology expertise, leadership, and global reach to work to better serve our customers.”
Culp continued, “Today is a defining moment for GE, and we are ready. Our teams have done exceptional work strengthening our financial position and operating performance, all while deepening our culture of continuous improvement and lean. And we’re not finished—we remain focused on continuing to reduce debt, improve our operational performance, and strategically deploy capital to drive sustainable, profitable growth. We have a responsibility to move with speed to shape the future of flight, deliver precision health, and lead the energy transition. The momentum we have built puts us in a position of strength to take this exciting next step in GE’s transformation and realize the full potential of each of our businesses.”
Meaningful Progress Enabling Next Step in GE’s Transformation This plan builds on the meaningful momentum that GE has built in recent years.
Stronger Financial Position
Focused and de-risked through strategic portfolio actions including recent GECAS transaction, resulting in a simpler, stronger, more focused high-tech industrial company;
Expect to achieve greater than $75 billion of gross debt reduction from the end of 2018 through the end of 2021;
Stabilized Insurance and mitigated funding risks through capital contributions of $9.4 billion since 2018, investment portfolio actions, improved claims management, and premium increases;
Managed pension obligations with discipline, including funding $8.5 billion since 2018 and freezing most pension plans in the U.S. and U.K., and expect no further contributions will be needed through the end of the decade; and
Strengthened liquidity and improved cash management, including eliminating on-book factoring, and today announcing plan to eliminate remainder of GE’s off-book factoring.
Stronger Business and Operating Performance
Implemented decentralized operating model by moving the center of gravity closer to customers, which enabled stronger customer relationships and operational improvement in GE’s nearly 30 P&Ls;
Scaled lean company-wide, driving performance improvements and culture change;
Improving operating performance in businesses to drive consistent, sustainable free cash flow, while enhancing transparency and financial flexibility to reinvest in growth opportunities;
Strengthened leadership and governance with Board refreshment, numerous leadership appointments, and auditor transition; and
Emerging from COVID-19 headwinds, while improving cash generation, playing offense, and investing for growth.
In today’s portfolio of businesses, GE is on track to reduce debt by more than $75 billion by the end of 2021 and is now on track to bring its net-debt-to-EBITDA* ratio to less than 2.5x in 2023. GE will also continue to drive operating improvements for sustainable profitable growth, and the company now expects to achieve high-single-digit free cash flow margins* in 2023. As a result, GE is in a strong position to execute this plan to form three well-capitalized, investment-grade companies. The company and its businesses will continue to serve GE’s partners and customers throughout this transition.
Management
Culp will serve as non-executive chairman of the GE healthcare company upon its spin-off. He will continue to serve as chairman and CEO of GE until the second spin-off, at which point, he will lead the GE aviation-focused company going forward.
Peter Arduini will assume the role of president and CEO of GE Healthcare effective January 1, 2022. Scott Strazik will be the CEO of the combined Renewable Energy, Power, and Digital business while John Slattery continues as CEO of Aviation.
Three Industry-Leading Global Public Companies1
Aviation
Healthcare
Renewable Energy and Power
Focus
Helping customers achieve greater efficiency and sustainability and invent the future of flight.
Driving innovation in precision health to address critical patient and clinical challenges.
Supporting customers and communities seeking to provide affordable, reliable, and sustainable power
Differentiated offering
Global leadership in propulsion and systems; most competitive and innovative engine value proposition (efficiency, reliability, lifecycle economics) with youngest and largest commercial fleet and most diversified services portfolio.
At the nexus of most care pathways; leading equipment business complemented by higher-margin services; offering diagnostics, interventional imaging, life care, therapy planning, and digital, with the opportunity for much faster growth.
Offering the world’s most powerful wind turbines; most efficient gas turbines and most powerful steam turbines; technology to modernize and digitize grid and electrical infrastructure; and carbon-free power sources like nuclear, hydro, and hybrids.
Global impact
Powering 2/3 of commercial flights
Serving 1B+ patients, 2B+ procedures/year
Together with our customers, providing 1/3 of the world’s power
Installed base
~37,700 commercial aircraft engines2 and ~26,500 military aircraft engines
4M+ installations
400+ gigawatts of renewable energy installed, 7,000+ gas turbines
Transaction Details
GE intends to execute the spin-offs of Healthcare in early 2023 and of the Renewable Energy and Power business in early 2024. The respective capital structures, brands, and leadership teams for each independent company will be determined and announced later. Where required to do so, GE will consult with employee representatives in line with its legal obligations before any final decisions are taken.
Through the transition, GE will be able to monetize its stakes in AerCap and Baker Hughes, prioritizing further debt reduction. Each of the three resulting independent companies will be well capitalized with investment-grade ratings.
Following the spin-off transactions, GE will retain other assets and liabilities of GE today, including run-off insurance operations. Upon closing the Healthcare transaction, GE expects to retain a stake of 19.9 percent in the healthcare company to provide capital allocation flexibility. GE also intends that Healthcare will issue debt securities, the proceeds of which will be used to pay down outstanding GE debt. The transactions are not subject to bondholder consent.
The company expects to incur one-time separation, transition, and operational costs of approximately $2 billion and tax costs of less than $0.5 billion, which will depend on specifics of the transaction. The proposed spin-offs of Healthcare and the Renewable Energy and Power business are intended to be tax-free for GE and GE shareholders for U.S. federal income tax purposes.
The transactions are subject to the satisfaction of customary conditions, including final approvals by GE’s Board of Directors, private letter rulings from the Internal Revenue Service and/or tax opinions from counsel, the filing and effectiveness of Form 10 registration statements with the U.S. Securities and Exchange Commission, and satisfactory completion of financing.
Advisors
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as lead legal counsel. Evercore and PJT Partners are the lead financial advisors to GE on the transaction. GE also received legal advice from Gibson, Dunn & Crutcher LLP and financial advice from BofA Securities and Goldman Sachs.
Conference Call and Webcast
GE will host an investor conference call today starting at 8:15am ET to discuss its plans. The call will feature remarks from Chairman and CEO H. Lawrence Culp, Jr., and CFO Carolina Dybeck Happe.
The conference call will be broadcast live via webcast, and the webcast and accompanying slide presentation containing financial information can be accessed by visiting the Events and Reports page on GE’s website at: www.ge.com/investor. An archived version of the webcast will be available on the website after the call.
Forward-looking Statements
This document contains “forward-looking statements”—that is, statements related to future, not past, events. These forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “preliminary,” or “range.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove 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, among others, (1) the ability to effect the transactions described above and to meet the conditions related thereto, (2) potential uncertainty during the pendency of the transactions that could affect GE’s financial performance, (3) the possibility that the transactions will not be completed within the anticipated time period or at all, (4) the possibility that the transactions will not achieve their intended benefits, (5) the possibility of disruption, including changes to existing business relationships, disputes, litigation or unanticipated costs in connection with the transactions, (6) uncertainty of the expected financial performance of GE or the separated companies following completion of the transactions, (7) negative effects of the announcement or pendency of the transactions on the market price of GE’s securities and/or on the financial performance of GE, (8) evolving legal, regulatory and tax regimes, (9) changes in general economic and/or industry specific conditions, (10) actions by third parties, including government agencies, and (11) other risk factors as detailed from time to time in GE’s reports filed with the SEC, including GE’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, periodic current reports on Forms 8-K and other documents filed with the SEC. The foregoing list of important factors is not exclusive.
Non-GAAP Financial Measures
In this document, we sometimes use information derived from consolidated financial data but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in our SEC filings and earnings materials, as applicable.
About GE
GE (NYSE:GE) rises to the challenge of building a world that works. For more than 125 years, GE has invented the future of industry, and today the company’s dedicated team, leading technology, and global reach and capabilities help the world work more efficiently, reliably, and safely. GE’s people are diverse and dedicated, operating with the highest level of integrity and focus to fulfill GE’s mission and deliver for its customers. www.ge.com
______________________ 1 Some steps may be subject to information & consultation with employee representatives where required by law. * Non-GAAP measure 2 Including GE and its joint venture partners * Non-GAAP measure
A trucking economic solutions company in metro Detroit is seeing rapid growth and anticipates doubling its income this year in contrast with before the COVID-19 pandemic.
Livonia-primarily based RoadEx was started off in 2014 by Jagdeep Dhillon, who experienced run a trucking company formerly with her husband. She attributes RoadEx’s expansion spurt to pandemic-related increases in demand for delivered merchandise, plus the firm’s 2020 and 2021 decisions to expand services for its consumer foundation of mostly small and mid-size truck carriers and operator-operators.
RoadEx’s profits has grown from $60 million in 2019 to an predicted $130 million for all of 2021.
It is exceptional for companies in the trucking marketplace to be owned or operate by women, and only about 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the industry’s workforce was female in 2020, in accordance to the U.S. Bureau of Labor Studies.
RoadEx has about 30 total-time employees performing out of its Livonia office, in addition an added 15 personnel based mostly overseas in India. The business was earlier recognised as Flat Price Funding Group prior to rebranding past calendar year as RoadEx.
The organization does not have or run major rigs. Fairly, it gives money solutions to trucking businesses, generally those people with fleets of one to 20 vans, though a couple of of its buyers are even larger.
A single of RoadEx’s key products and services is recognized as freight factoring, which involves providing money to trucking providers in exchange for purchasing their accounts receivable.
Trucking companies use factoring for the reason that they have substantial upfront prices like fuel and repairs, and the companies that get their deliveries can get 30 times, 45 days or even extended to pay. An common bill per truck supply is about $2,300.
“They need funds circulation all the time to spend their motorists and pay out for gasoline,” reported Dhillon, who chairs the business.
Factoring providers these types of as RoadEx buy invoices for somewhat fewer than the amount of money owed, about 95{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}-97{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. They later earn profit as businesses pay the invoices.
RoadEx finances its factoring exercise by means of a blend of funds on its individual stability sheet, plus bank borrowings, in accordance to Dhillon.
The trucking sector is infamous for include-on and hidden costs in contracts. Kevin Principal, co-operator of Florida-dependent Winstar Complete Logistics, a trucking enterprise with 26 trucks that utilizes RoadEx for factoring, stated he appreciates how the organization is clear.
“What I like about RoadEx is when I appear by my deal, like most people must for dispatching and for gasoline and for factoring, there is very little hidden — everything is proper out there for me,” he stated. “It is incredibly easy to recognize … and that’s why I’ve stayed.”
By way of the many years RoadEx has steadily added services, including truck dispatching, which is placing up truckers’ routes and finding loads for them to choose up and deliver.
With nodispatching, trucking corporations run the threat of obtaining small or practically nothing to haul on their journey back from a distant location. Dispatchers frequently take a part of the payment for each individual load that they find for the trucker.
A dispatcher is distinctive from a freight broker, which acts as a intermediary amongst the shipper and the trucking organization.
Other products and services offered by RoadEx incorporate truck coverage, emergency financial loans and fuel cost savings credit score playing cards.
“We provide five different products and services — generally factoring firms really don’t provide all of them,” Dhillon reported.
Brother in trucking
Although neither Dhillon nor her husband ever worked as a truck driver, Jagdeep Dhillon grew to become acquainted with the industry’s monetary services needs from her brother, who started out driving trucks following immigrating to Canada from India.
Dhillon also was born in India and immigrated to Canada in 1994 at age 22. She is from the Punjab area in India, and the Punjabi neighborhood at large has deep roots in the trucking sector in the U.S. and Canada.
She and her spouse began a trucking corporation in Canada in 2005. They later shut that company at the time they moved to the U.S. in 2012.
Here they started a new basic freight trucking business, Romulus-centered DF Provider, which they sold in 2017 to focus on expanding what is now RoadEx. Proceeds from the sale aided Dhillon to spend far more in RoadEx and its advancement, she mentioned.
Dhillon, who goes by the nickname “Deep” at work, reported she is familiar with of handful of other female owners of trucking economic services businesses.
Her daughter, Simran Dhillon, explained persons are normally shocked to find out that her mother is the boss at RoadEx.
“You would listen to her on the phone and (callers) would be like ‘Can we communicate to whoever is in cost?’ And she is like, ‘It doesn’t get any far more in cost than me,'” her daughter reported. “And they are like, ‘How about the proprietor or the supervisor?’ and she is like, ‘that’s me.'”
Deep Dhillon said some of the supply chain delays now in the news are exacerbated by a shortage of trailers in addition to truck drivers.
“Correct now, it is pretty really hard to get a trailer,” she said. “We have so many corporations in which they have drivers, they have vans, but they really don’t have trailers.”
NEW YORK, Nov. 04, 2021 (GLOBE NEWSWIRE) — Portman Ridge Finance Corporation (Nasdaq: PTMN) (the “Company” or “Portman Ridge”) announced today its financial results for the third quarter ended September 30, 2021 and declared a quarterly stockholder distribution of $0.62 per share for the fourth quarter of 2021, payable on November 30, 2021 to stockholders of record at the close of business on November 15, 2021. This is an increase of $0.02 per share from $0.60 per share last quarter.
Third Quarter 2021 Highlights
Completed a 1-for-10 reverse stock split of the Company’s common stock effective August 26, 2021.
Net investment income for the quarter was $1.50 per share, or $13.7 million.
Net asset value (“NAV”) per share increased to $29.71 from $29.28(2) quarter-to-quarter, reflecting broad-based improvements in the debt portfolio and joint ventures.
As of September 30, 2021, the fair value of the Company’s investments excluding derivatives totaled $562 million, of which the Company’s debt securities portfolio totaled $455 million and was comprised of investments in 145 portfolio companies.
During the quarter, the Company acquired approximately $62.0million par value of investment portfolio assets. Also, during the quarter, the Company received approximately $37.1 million in sale and repayment proceeds, which includes a $0.5 million increase relative to the carrying value of those assets sold.
Net leverage(1) was 1.1x as of September 30, 2021, compared to 0.9x as of June 30, 2021, driven primarily by the timing of investments in the pipeline. During the quarter, the Company redeemed in full the aggregate amount outstanding of $28.75 million of the HCAP 6.125{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Notes due 2022.
Under its share buyback program, the Company repurchased approximately $1.4 million of its shares during the quarter.
The quarterly distribution for the third quarter was $0.60 per share and was paid on August 31, 2021.
Subsequent to quarter-end, on October 22, 2021, the Company entered into a purchase and sale agreement to purchase $18.1 million of portfolio assets from two wholly-owned subsidiaries of JMP Group LLC in exchange for $1.4 million in cash and 556,852 shares of its common stock issued at NAV. The closing of the transaction occurred in the fourth quarter of 2021.
Management Commentary
Ted Goldthorpe, Chief Executive Officer of Portman Ridge commented, “Our third quarter results reflect continued strong earnings, distribution coverage, and robust origination. Net assets per share increased to $29.71 and represents the sixth straight quarter-to-quarter increase. We also continued to maintain expenses at a stable level relative to our asset base, which has grown significantly over the past year, and we expect further leveraging of operating expenses over time. Our solid performance has allowed us to increase our quarterly distribution this by $0.02 to $0.62 per share. Overall, our objective is to deliver consistently strong performance each quarter for shareholders, and we believe we are well positioned to continue executing on this goal.”
Selected Financial Highlights (unaudited)
Three Months Ended
Three Months Ended
(in $ millions, except per share data)
September 30, 2021
June 30, 2021
Investment Income:
Interest from investments in debt securities
$
18.7
$
18.0
Investment income on CLO Fund Securities
0.7
0.8
Investment income – Joint Ventures
2.4
2.5
Capital structuring service fees
1.0
0.2
Total investment income
22.9
21.5
Net expenses
9.2
9.8
Net Investment Income
$
13.7
$
11.7
Net realized and unrealized gains (losses)
(4.6
)
(0.9
)
Realized losses on debt extinguishment
‒
‒
Net increase in net assets resulting from operations
$
9.1
$
10.8
Net increase in net assets resulting from operations per share (basic and diluted)(2)
$
1.00
$
1.40
Net investment income per share (basic and diluted)(2)
$
1.50
$
1.51
Weighted average shares outstanding (in millions)(2)
9.1
7.7
Distribution per share
$
0.60
$
0.60
Total investment income for the three months ended September 30, 2021 and June 30, 2021 was $22.9 million and $21.5 million, respectively. Investment income increased quarter-to-quarter primarily due to higher interest income on debt securities and higher capital structuring fees.
Total expenses for the three months ended September 30, 2021 and June 30, 2021 were $9.2 million and $9.8 million, respectively. The decrease quarter-to-quarter was driven primarily by lower incentive fees, lower professional fees, and lower general and administrative expenses. Interest expense and amortization of debt issuance costs decreased slightly quarter-to-quarter, from $3.5 million to $3.4 million due to the impact of a lower weighted average cost of debt.
Net investment income for the three months ended September 30, 2021 and June 30, 2021 was $13.7 million or $1.50 per share, and $11.7 million or $1.51(2) per share, respectively.
Net realized and unrealized depreciation on investments for the three months ended September 30, 2021 was $(4.6) million, as compared to net realized and unrealized appreciation of $(0.9) million for the three months ended June 30, 2021.
Portfolio
The fair value of our portfolio was $560 million ($562 million excluding derivatives) as of September 30, 2021. The composition of our investment portfolio at September 30, 2021 and December 31, 2020 at cost and fair value was as follows:
¹ Represents percentage of total portfolio at fair value. ² Represents the equity investment in the Asset Manager Affiliates.
As of September 30, 2021, six of the Company’s debt investments were on non-accrual status. As of June 30, 2021, eight of the Company’s investments were on non-accrual status. Investments on non-accrual status were 0.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 2.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the Company’s investment portfolio at fair value and amortized cost as of September 30, 2021, respectively, compared to 1.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 3.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} as of June 30, 2021.
Liquidity and Capital Resources
As of September 30, 2021, we had $340.9 million (par value) of borrowings outstanding ($335.4 million net of capitalized costs) with a combined weighted average interest rate of 3.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. This balance was comprised of $69.1 million of outstanding borrowings under the Senior Secured Revolving Credit Facility, $163.9 million of 2018-2 Secured Notes due 2029, and $108.0 million of 4.875{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Notes due 2026.
As of September 30, 2021, the Company had unrestricted cash of $28.5 million, restricted cash of $21.1 million, $45.9 million of available borrowing capacity under the Senior Secured Revolving Credit Facility, and $25.0 million of borrowing capacity under the 2018-2 Revolving Credit Facility. Total assets and stockholders’ equity at September 30, 2021 were $627 million and $271 million, respectively. Aggregate unfunded commitments stood at $48.7 million as of September 30, 2021. Conference Call and Webcast
We will hold a conference call on Friday November 5, 2021 at 11:00 a.m. Eastern Time to discuss our third quarter 2021 financial results. Stockholders, prospective stockholders and analysts are welcome to listen to the call or attend the webcast.
To access the call please dial (866) 757-5630 approximately 10 minutes prior to the start of the conference call and reference the conference ID 7445538. A replay of the conference call will be available from November 5, 2021 until November 12, 2021. The dial in number for the replay is (855) 859-2056 and the conference ID is 7445538.
A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis on our Company’s website www.portmanridge.com in the Investor Relations section under Events and Presentations. The webcast can also be accessed by clicking the following link: Portman Ridge Third Quarter 2021 Conference Call. The online archive of the webcast will be available on the Company’s website shortly after the call.
About Portman Ridge Finance Corporation
Portman Ridge Finance Corporation (Nasdaq: PTMN) is a publicly traded, externally managed investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Portman Ridge’s middle market investment business originates, structures, finances and manages a portfolio of term loans, mezzanine investments and selected equity securities in middle market companies. Portman Ridge’s investment activities are managed by its investment adviser, Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors, LP.
Portman Ridge’s filings with the Securities and Exchange Commission (the “SEC”), earnings releases, press releases and other financial, operational and governance information are available on the Company’s website at www.portmanridge.com.
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. For more information, please visit www.bcpartners.com.
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.
This press release contains forward-looking statements. The matters discussed in this press release, as well as in future oral and written statements by management of Portman Ridge Finance Corporation, that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements.
Forward-looking statements relate to future events or our future financial performance and include, but are not limited to, projected financial performance, expected development of the business, plans and expectations about future investments and the future liquidity of the Company. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “outlook”, “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. 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.
Important assumptions include our ability to originate new investments, and achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this press release should not be regarded as a representation that such plans, estimates, expectations or objectives will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) uncertainty of the expected financial performance of the Company; (2) expected synergies and savings associated with the transaction in which Garrison Capital Inc. merged with and into the Company; (3) the ability of the Company and/or BC Partners to implement its business strategy; (4) evolving legal, regulatory and tax regimes; (5) changes in general economic and/or industry specific conditions; (6) the impact of increased competition; (7) business prospects and the prospects of the Company’s portfolio companies; (8) contractual arrangements with third parties; (9) any future financings by the Company; (10) the ability of Sierra Crest Investment Management LLC to attract and retain highly talented professionals; (11) the Company ability to fund any unfunded commitments; (12) any future distributions by the Company; (13) changes in regional or national economic conditions, including but not limited to the impact of the COVID-19 pandemic, and their impact on the industries in which we invest; (14) other changes in the conditions of the industries in which we invest and other factors enumerated in our filings with the SEC; and (15) expected synergies and savings associated with the transaction in which HCAP merged with and into the Company. The forward-looking statements should be read in conjunction with the risks and uncertainties discussed in the Company’s filings with the SEC, including the Company’s most recent Form 10-K and other SEC filings. We do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required to be reported under the rules and regulations of the SEC.
(1) Net leverage is calculated as the ratio between (A) debt, excluding unamortized debt issuance costs, less available cash and cash equivalents, and restricted cash and (B) NAV. (2) The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, share and per share amounts have been adjusted retroactively to reflect the split for all periods presented.
Contacts: Portman Ridge Finance Corporation 650 Madison Avenue, 23rd floor New York, NY 10022 info@portmanridge.com
Jason Roos Jason.Roos@bcpartners.com (212) 891-2880
Jeehae Linford The Equity Group Inc. jlinford@equityny.com (212) 836-9615
Accounts payable, accrued expenses and other liabilities
3,961,666
1,788,908
Accrued interest payable
3,345,558
1,089,531
Due to affiliates
760,112
1,374,739
Management and incentive fees payable
5,654,814
5,243,869
Total Liabilities
356,056,136
383,914,558
COMMITMENTS AND CONTINGENCIES (NOTE 8)
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share, 20,000,000 common shares authorized; 9,291,578 issued, and 9,123,275 outstanding at September 30, 2021, and 7,609,349 issued, and 7,516,423 outstanding at December 31, 2020
91,233
75,164
Capital in excess of par value
680,451,474
639,136,026
Total distributable (loss) earnings
(409,494,432
)
(422,947,327
)
Total Stockholders’ Equity
271,048,275
216,263,863
Total Liabilities and Stockholders’ Equity
$
627,104,411
$
600,178,421
NET ASSET VALUE PER COMMON SHARE (1)
$
29.71
$
28.77
(1) The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, the common shares and net asset value per common share have been adjusted retroactively to reflect the split for all periods presented.
PORTMAN RIDGE FINANCE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2021
2020
2021
2020
Investment income:
Interest from investments in debt securities
$
17,391,146
$
4,517,268
$
48,736,532
$
13,910,567
Payment-in-kind investment income
1,296,496
434,446
3,172,910
1,125,343
Interest from cash and time deposits
–
–
–
15,279
Investment income on CLO Fund Securities managed by affiliates
–
587,239
–
2,493,600
Investment income on CLO Fund Securities managed by non-affiliates
748,449
42,341
2,211,092
247,302
Investment income – Joint Ventures
2,442,703
2,182,466
7,012,167
4,760,485
Capital structuring service fees
1,032,346
23,602
1,628,155
302,887
Total investment income
22,911,140
7,787,362
62,760,856
22,855,463
Expenses:
Management fees
2,064,733
1,043,645
5,771,636
3,063,719
Performance-based incentive fees
1,939,170
571,846
6,332,646
1,128,726
Interest and amortization of debt issuance costs
3,408,445
2,239,911
10,315,528
6,984,852
Professional fees
490,284
439,503
2,680,458
1,810,450
Insurance
198,011
177,154
574,973
478,058
Administrative services expense
760,112
470,435
2,091,769
1,361,700
Other general and administrative expenses
332,534
147,818
1,352,737
522,091
Total expenses
9,193,289
5,090,312
29,119,747
15,349,596
Management and performance-based incentive fees waived
—
(556,880
)
Net Expenses
9,193,289
5,090,312
29,119,747
14,792,716
Net Investment Income
13,717,851
2,697,050
33,641,109
8,062,747
Realized And Unrealized Gains (Losses) On Investments:
Net realized (losses) gains from investment transactions
(3,931,280
)
(1,890,090
)
(11,372,803
)
(3,819,851
)
Net change in unrealized appreciation (depreciation) on:
Debt securities
(4,447,878
)
4,553,027
(7,448,405
)
(3,945,277
)
Equity securities
1,215,013
337,258
3,905,834
411,276
CLO Fund Securities managed by affiliates
—
1,573,272
—
(12,168,189
)
CLO Fund Securities managed by non-affiliates
706,935
363,430
9,354,655
(491,863
)
Joint Venture Investments
2,063,261
1,146,355
2,654,032
(4,654,363
)
Derivatives
(179,416
)
(461,629
)
(873,473
)
(999,612
)
Total net change in unrealized appreciation (depreciation)
(642,085
)
7,511,713
7,592,643
(21,848,028
)
Net realized and unrealized appreciation (depreciation) on investments
(4,573,365
)
5,621,623
(3,780,160
)
(25,667,879
)
Realized (losses) gains on extinguishments of Debt
—
—
(1,834,963
)
154,571
Net Increase (Decrease) In Stockholders’ Equity Resulting From Operations
$
9,144,486
$
8,318,673
$
28,025,986
$
(17,450,561
)
Net Increase (Decrease) In Stockholders’ Equity Resulting from Operations per Common Share (1):
Basic:
$
1.00
$
1.87
$
3.41
$
(3.91
)
Diluted:
$
1.00
$
1.87
$
3.41
$
(3.91
)
Net Investment Income Per Common Share (1):
Basic:
$
1.50
$
0.61
$
4.10
$
1.81
Diluted:
$
1.50
$
0.61
$
4.10
$
1.81
Weighted Average Shares of Common Stock Outstanding—Basic (1)
9,131,456
4,441,778
8,213,661
4,461,650
Weighted Average Shares of Common Stock Outstanding—Diluted (1)
9,131,456
4,441,778
8,213,661
4,461,650
(1) The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, the weighted average shares outstanding and per share values have been adjusted retroactively to reflect the split for all periods presented.
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Williams characteristics the raise in stock current market participation to both of those the social justice resurgence of last year and the circumstances of the pandemic. As a byproduct of the lockdowns and social distancing mandates from Covid, men and women expended significantly less time and funds on leisure pursuits. Abruptly, more youthful grownups in particular located by themselves with excess resources to make investments, together with the time to take into consideration their possibilities.
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Bay Road Funds normally takes a in the same way inclusive technique with its holdings. Whilst other firms concentration on maximizing returns, Huston and Anya-Gafu position a better priority on whole possibility management. They choose to spend in businesses with a good hard cash flow, which safeguards Bay Street’s traders by blocking absolute decline throughout any allocation.
This method places the corporation in a position to perform with Black-owned organizations that are good investments but have been advised “no” by the financial institutions mainly because they are little businesses or not scalable.
“I’m going to give them the time of day,” states Huston. “Right there I’m creating a subset of decisions that yet another agency is not likely to make. And if there is a profits variety, we can create all-around it, rather of just injecting money.” It is a get for all people concerned.
As Williams sees it, the fight for racial justice incorporates the combat for monetary equity. “I consider what we discovered via the social justice motion is that the power of the neighborhood are unable to be contained,” he suggests. “We are wanting at the holistic effect we want to make on creating prosperity in this nation.”
