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NEW YORK - Portman Ridge Finance Corporation (NASDAQ:PTMN), currently trading at $12.47 with a market capitalization of $115.7 million, announced Friday that its shareholders have approved the issuance of common stock for the proposed merger with Logan Ridge Finance Corporation (NASDAQ:LRFC). According to InvestingPro, PTMN maintains strong financial health metrics, with liquid assets exceeding short-term obligations.
Approximately 88% of voting PTMN shareholders supported the transaction, according to a press release statement. Logan Ridge stockholders had previously approved the merger on June 20.
Under the terms of the agreement, Logan Ridge shareholders will receive 1.50 newly issued shares of Portman Ridge common stock for each share of Logan Ridge stock they hold. The transaction is expected to close around July 15, 2025, pending satisfaction of customary closing conditions. With analyst price targets ranging from $14 to $16, PTMN currently trades well below these levels at $12.47, near its 52-week low of $11.48.
Following the merger, Portman Ridge will rebrand as BCP Investment Corporation and trade on Nasdaq under the ticker symbol "BCIC," reflecting its affiliation with the BC Partners Credit Platform.
The combined company plans to transition from quarterly to monthly base distributions beginning in 2026, while maintaining the potential for quarterly supplemental distributions representing approximately 50% of excess net investment income. InvestingPro data shows PTMN currently offers a substantial 14.9% dividend yield and has maintained dividend payments for 19 consecutive years. For deeper insights into PTMN’s dividend sustainability and growth potential, access the comprehensive Pro Research Report available on InvestingPro.
Ted Goldthorpe, President and CEO of both companies, said the merger would create "a larger, more efficient platform that is better positioned for long-term growth."
The company also announced plans for share repurchases over the next 24 months. Management, advisers and their affiliates intend to acquire up to 20% of outstanding common stock if shares continue trading below 80% of net asset value. These purchases will begin no earlier than 60 days after the merger closes. InvestingPro subscribers can access additional insights, including the company’s detailed financial health analysis and 8 more exclusive ProTips that could impact investment decisions.
Portman Ridge’s board has already authorized a $10 million open market stock repurchase program running from March 12, 2025, to March 31, 2026.
In other recent news, Portman Ridge Finance Corporation reported its Q1 2025 earnings, revealing a significant miss in earnings per share (EPS) and revenue. The company’s EPS was -$0.01, falling short of the forecasted $0.62, while revenue came in at $12.1 million, below the projected $14.04 million. Despite these setbacks, Portman Ridge is pursuing strategic initiatives, including a proposed merger with Logan Ridge Finance Corporation, which aims to bring synergies and cost savings. The merger is expected to close soon, with a special shareholder meeting scheduled for June 2025. In a related development, Portman Ridge announced plans to rebrand as BCP Investment Corporation and change its ticker symbol to BCIC following the merger. Additionally, the company plans to transition from quarterly to monthly base distributions beginning in 2026. Portman Ridge, along with its management and affiliates, also intends to acquire up to 20% of outstanding common stock if shares continue trading below 80% of net asset value. These recent developments highlight the company’s efforts to navigate a challenging economic environment while seeking growth and operational efficiencies.
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