Logan Ridge Finance completes merger with Portman Ridge, delists from NASDAQ

Published 16/07/2025, 21:34
Logan Ridge Finance completes merger with Portman Ridge, delists from NASDAQ

Logan Ridge Finance Corp. (NASDAQ:LRFC), which maintained a revenue growth of 3.11% in the last twelve months and a conservative beta of 0.77, completed its previously announced merger with Portman Ridge Finance Corp. (NASDAQ:PTMN) on Tuesday, according to a statement released through an SEC filing. According to InvestingPro, LRFC has shown strong liquidity management despite challenging market conditions, with several key metrics suggesting strategic positioning for this merger.

Under the terms of the merger agreement, each outstanding share of Logan Ridge common stock was converted into the right to receive 1.5 shares of Portman Ridge common stock. As a result, Portman Ridge issued approximately 4.0 million shares of its common stock to former Logan Ridge shareholders. InvestingPro data reveals LRFC’s solid financial position with a current ratio of 1.98, indicating strong ability to meet short-term obligations during this transition.

Following the transaction, trading in Logan Ridge common stock on the NASDAQ Global Select Market was halted after the close of trading on Monday and was suspended effective Wednesday. Logan Ridge notified NASDAQ of the merger’s completion and requested the delisting of its shares.

The merger resulted in a change in control of Logan Ridge. At the effective time of the first step of the merger, all named officers and directors of Logan Ridge ceased to hold their positions, and the officers and director of Portman Ridge Merger Sub, Inc. became the new officers and director of the surviving company.

Additionally, the investment advisory agreement between Logan Ridge and Mount Logan Management LLC was terminated as part of the merger process.

The Board of Directors of Logan Ridge previously declared a special distribution of $0.38 per share, payable to shareholders of record as of July 14, 2025, with payment expected on or about July 22, 2025. In addition, pursuant to a side letter agreement, Mount Logan Management LLC agreed to finance a pre-closing cash payment of $0.47 per share to Logan Ridge shareholders of record as of May 6, 2025, contingent upon the closing of the merger. This distribution adds to LRFC’s already substantial 7.55% dividend yield, as reported by InvestingPro, which offers comprehensive analysis of over 1,400 US stocks through its detailed Pro Research Reports.

The information in this article is based on a statement released in a Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Logan Ridge Finance Corporation reported its first-quarter 2025 earnings, which fell short of market expectations. The company announced an earnings per share (EPS) of $0.35, missing the forecasted $0.37, and revenue of $4.63 million, which was below the anticipated $5.2 million. A significant factor in the earnings miss was a $4.4 million write-down on a legacy investment in Sequoia Healthcare. Logan Ridge’s net asset value (NAV) decreased by 7.4% from the previous quarter, now standing at $78.8 million. In a strategic move, the company exited its second-largest non-yielding equity investment, GA Communications, as part of its ongoing portfolio rotation strategy. Additionally, Logan Ridge Finance is anticipating a merger with Fort McMurray, which is expected to enhance operational efficiencies and provide increased scale. CEO Ted Goldthorpe expressed optimism about the merger’s potential benefits. Meanwhile, analysts have noted limited recovery expectations from non-accrual investments, such as Sequoia Healthcare.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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