Houlihan Lokey Advises Logan Ridge Finance Corp.

Houlihan Lokey is pleased to announce that Logan Ridge Finance Corp. (NASDAQ:LRFC; LRFC) has merged with Portman Ridge Finance Corp. (NASDAQ:PTMN; PTMN), with PTMN remaining as the surviving company. Houlihan Lokey served as the exclusive financial advisor to the special committee of LRFC. The transaction closed on July 15, 2025.

In connection with the closing of the merger, LRFC shareholders are entitled to receive approximately 4.0 million shares of PTMN common stock in the aggregate, or 1.5 shares of PTMN common stock for each common share of LRFC, based on the applicable exchange ratio and payment of cash in lieu of fractional shares.

Prior to the closing of the merger, LRFC’s investment advisor announced a cash payment of $0.47 per share to LRFC shareholders of record as of May 6, 2025, which is expected to be paid to the applicable legacy LRFC shareholders on or about July 25, 2025. Additionally, on July 14, 2025, LRFC’s board of directors declared a tax distribution of $0.38 per share to LRFC shareholders of record as of July 14, 2025, which is expected to be paid to the applicable legacy LRFC shareholders on or about July 22, 2025.

This merger is expected to allow the combined company to leverage enhanced scale, a further diversified portfolio, cost savings due to lower overall operating expenses, and improved stock trading liquidity to deliver compelling risk-adjusted returns for shareholders.

Prior to the merger with PTMN, LRFC was a BDC that invested primarily in first lien loans and, to a lesser extent, second lien loans and equity securities issued by lower-middle-market companies. LRFC invested in performing, well-established middle-market businesses operating across a wide range of industries. It employed fundamental credit analysis, targeting investments in businesses with relatively low levels of cyclicality and operating risk.

PTMN is a publicly traded, externally managed closed-end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. PTMN’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. PTMN’s investment activities are managed by its investment advisor, Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors LP.

This transaction highlights Houlihan Lokey’s market-leading position advising business development companies and managers on a variety of strategic initiatives. It represents the firm’s sixth completed related party BDC merger in the past four years and the fourteenth announced BDC transaction since 2015.

Houlihan Lokey served as the financial advisor to the special committee of LRFC.

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