Portman Ridge Finance Corporation Closes Private Placement of $80 Million of 4.875% Senior Unsecured Notes due 2026

Rhea-AI Summary

Portman Ridge Finance Corporation (Nasdaq: PTMN) has successfully closed a private placement of $80 million in 4.875% senior unsecured notes due 2026. The company received approximately $77.7 million in net proceeds after fees. These notes will help Portman Ridge address near-term debt maturities and lower overall debt costs. The net proceeds will be utilized to redeem existing higher-interest notes, invest in portfolio companies, and for general corporate purposes. This strategic move aims to enhance shareholder value and improve the company's financial positioning.

Positive

• Closed a private placement of $80 million in senior unsecured notes, improving liquidity.
• Net proceeds of approximately $77.7 million will be used to redeem 6.125% notes, reducing interest expenses.
• The new notes have an interest rate of 4.875%, significantly lower than the previous rate.

Negative

• None.

NEW YORK, May 03, 2021 (GLOBE NEWSWIRE) -- Portman Ridge Finance Corporation (Nasdaq: PTMN) (the “Company” or “Portman Ridge”), a business development company, today announced that on April 30, 2021, it closed a private placement of $80 million in aggregate principal amount of 4.875% senior unsecured notes due 2026 (the “Notes”), which were initially assigned a BBB- rating by Egan-Jones. The net proceeds to the Company were approximately $77.7 million, after deducting payment of fees and estimated offering expenses.  

The Notes bear an interest rate of 4.875% per year, payable semiannually and will mature on April 30, 2026 and may be repaid in whole or in part, at Portman Ridge’s option, at any time or from time to time at par plus a “make-whole” premium, if applicable. The Company intends to use the net proceeds of the private placement to redeem in full its 6.125% Senior Unsecured Notes due September 2022, make investments in portfolio companies in accordance with its investment objectives, and for general corporate purposes.

“We are very pleased to announce the closing of this debt offering which addresses a near-term debt maturity while significantly reducing our cost of debt,” said Ted Goldthorpe, Chief Executive Officer of Portman Ridge. “We continue to assess options to improve our overall cost of capital to support our portfolio companies and generate value for shareholders.”   

This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes and will not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offers of the Notes will be made only by means of a private offering memorandum. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

The Notes have not been registered under the Securities Act, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

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.

Cautionary Statement Regarding Forward-Looking Statements

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. 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.

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

FAQ

What is the significance of Portman Ridge Finance Corporation's recent private placement of notes?

The private placement of $80 million in senior unsecured notes allows Portman Ridge to manage near-term debt maturities and significantly reduce its cost of debt.

How much net proceeds did Portman Ridge Finance Corporation receive from the notes issuance?

Portman Ridge received approximately $77.7 million in net proceeds after deducting fees from the notes issuance.

What will Portman Ridge Finance Corporation do with the proceeds from the private placement?

The proceeds will be used to redeem existing higher-interest notes, invest in portfolio companies, and for general corporate purposes.

When do the new senior unsecured notes issued by Portman Ridge Finance Corporation mature?

The new senior unsecured notes will mature on April 30, 2026.

What rating was assigned to the senior unsecured notes issued by Portman Ridge Finance Corporation?

The notes were initially assigned a BBB- rating by Egan-Jones.