Portman Ridge Finance Completes Merger with Logan Ridge Finance, Sets New Name and Initiatives.

Portman Ridge Finance Corporation has completed its merger with Logan Ridge Finance Corporation, resulting in a combined company with total assets exceeding $600 million. The merged entity will rebrand as BCP Investment Corporation, with plans to transition to monthly base distributions in 2026 and purchase up to 20% of its outstanding common stock over the next two years. The merger is expected to provide enhanced scale, a diversified portfolio, and cost savings.

Title: Portman Ridge Finance Corporation Completes Merger with Logan Ridge Finance Corporation

Portman Ridge Finance Corporation (PTMN) has successfully completed its merger with Logan Ridge Finance Corporation (LRFC), resulting in a combined entity with total assets exceeding $600 million. The newly formed company will rebrand as BCP Investment Corporation (BCIC) and has outlined several strategic initiatives aimed at enhancing its financial position.

Under the merger terms, LRFC shareholders will receive 1.5 shares of PTMN common stock for each LRFC share, totaling approximately 4.0 million PTMN shares. Additionally, LRFC shareholders will receive two special distributions: $0.47 per share payable on July 25, 2025, and a tax distribution of $0.38 per share payable on July 22, 2025 [1].

The merged entity plans to transition to monthly base distributions in 2026, providing shareholders with more frequent income. Furthermore, the company has committed to purchasing up to 20% of its outstanding common stock over the next two years when trading below 80% of net asset value (NAV). This move signals management's confidence in the intrinsic value of the company and addresses the persistent NAV discount often seen in the Business Development Company (BDC) sector [1].

The merger is expected to provide several strategic advantages, including operational efficiencies, portfolio diversification, and improved stock trading liquidity. The increased scale should drive lower overall operating expenses, a critical factor for BDCs where management expense ratios directly impact shareholder returns. The diversified portfolio reduces concentration risk, and improved liquidity should benefit shareholders through tighter bid-ask spreads [1].

The combined company will be rebranded as BCP Investment Corporation (BCIC), aligning with its BC Partners affiliation. Ted Goldthorpe, President and Chief Executive Officer of PTMN, expressed enthusiasm about the opportunities ahead, stating, "We are excited about the opportunities ahead. We will seek to leverage the combined company’s enhanced scale, further diversified portfolio, cost savings due to lower overall operating expenses, and improved stock trading liquidity to deliver compelling risk-adjusted returns for our shareholders" [1].

The merger represents a significant consolidation in the BDC space, positioning the combined entity as a more substantial player in the middle-market lending segment. The closing of the merger was facilitated by financial advisors Keefe, Bruyette & Woods and legal counsel Simpson Thacher & Bartlett LLP, among others [1].

References
[1] https://www.stocktitan.net/news/PTMN/portman-ridge-finance-corporation-closes-merger-with-logan-ridge-ykzv9dugn5pa.html