Repayment of higher interest notes and refinancing of old capital structure significantly reduces the Company’s cost of debt capital
NEW YORK, June 07, 2022 (GLOBE NEWSWIRE) — Logan Ridge Finance Corporation (“LRFC” or the “Company”) (Nasdaq: LRFC) today announced the full redemption of its 5.75 % (the “2022 Convertible Notes” – Nasdaq: CPTAG) and 6.00% Fixed Rate Notes (the “2022 Notes” – Nasdaq: CPTAL), both due May 31, 2022.
As of March 31, 2022, the total outstanding amount of 2022 Convertible Notes and 2022 Notes was $52.1 million and $22.8 million, respectively.
Repayment to the Trustee was made on May 11, 2021 using cash on hand and proceeds from the refinancing of the entire inherited capital structure of the Company. This was an important milestone and a key strategic initiative for the Company. Specifically, since Mount Logan Management, LLC (“Mount Logan”) began managing the Company on July 1, 2021, the Company has completed the following transactions:
KeyBank credit facility: On May 10, 2022, the Company amended its existing senior secured revolving credit facility with KeyBank (“KeyBank Credit Facility”), increasing the original commitment from $25.0 million to $75.0 million. dollars, with an uncommitted accordion feature that allows the Company to borrow up to an additional $125.0 million. The KeyBank Amended Credit Facility has a maturity date of May 10, 2027. Borrowings under the KeyBank Amended Credit Facility bear interest at 1M Term SOFR plus 2.90% during the 3-year renewable period and 3.25% thereafter, with a floor of 0.40% at 1M Term SOFR.
Convertible Notes 2032: On April 1, 2022, the Company entered into a note purchase agreement for the issuance of $15.0 million convertible notes due April 2032. The 2032 convertible notes bear interest at 5.25%.
Tickets 2026: On October 29, 2021, the Company entered into a note purchase agreement for the issuance of $50.0 million notes due October 2026. The 2026 notes bear interest at 5.25%.
About Logan Ridge Finance Corporation
Logan Ridge Finance Corporation (Nasdaq: LRFC) is a business development company that invests primarily in senior loans and, to a lesser extent, junior loans and equity securities issued by lower middle market companies. The Company invests in successful and well-established middle-market companies that operate in a wide range of industries. It uses fundamental credit analysis, targeting investments in companies with relatively low levels of cyclicality and operational risk. For more information, visit loganridgefinance.com.
About Mount Logan Capital Inc.
Mount Logan Capital Inc. (“MLC”) is an alternative asset management firm focused on public and private debt securities in the North American market. MLC is the ultimate controlling person of Mount Logan Management, LLC, which acts as the Company’s investment advisor. MLC seeks to obtain and actively manage loans and other debt-like securities with credit-oriented characteristics. MLC actively sources, rates, underwrites, manages, monitors and invests in loans, debt securities and other credit-oriented instruments that offer attractive risk-adjusted returns and low risk of capital depreciation throughout. of the credit cycle. MLC is a subsidiary of BC Partners Advisors LP for US regulatory purposes.
About BC Partners Advisors LP and BC Partners Credit
BC Partners is a leading international investment firm with over $40 billion in assets under management in private equity, private credit and real estate strategies. Founded in 1986, BC Partners has played an active role in developing the European buyout market for three decades. Today, BC Partners’ leaders operate in all markets as an integrated team across the firm’s offices in North America and Europe. Since its inception, BC Partners has made 117 private equity investments in companies with a total enterprise value of €149 billion and is currently investing its eleventh private equity fund.
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 all sectors, leveraging deal sourcing and the infrastructure provided by BC Partners.
Caution Regarding Forward-Looking Statements
This communication contains “forward-looking” statements. Forward-looking statements relate to future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may”, “will”, “should”, “potential”, “intends of”, “expects”, “strives”, “seek”, “anticipate”, “estimate”, “overestimate”, “underestimate”, “believe”, “could”, “project”, “predict”, “continue”, “target” or other similar words or expressions. Forward-looking statements are based on current plans, estimates and expectations which are subject to risks, uncertainties and assumptions. If one or more of such risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results could differ materially from those indicated or anticipated by such forward-looking statements.The inclusion of such statements should not be construed as a representation that such plans, estimates or expectations will be made. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include the risk factors detailed in the Company’s reports filed with the Securities and Exchange Commission (“SEC”), including the the Company’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC.
All forward-looking statements speak only as of the date of this communication. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information or new developments, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
For more information, contact:
Logan Ridge Financial Corporation
650 Madison Ave, 23rd Floor
New York, NY 10022
Equity Group Inc.