Good day, and thank you for standing by. Welcome to the Logan Ridge First Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Please be advised that today's conference is being recorded. To ask a question during the session, you will need to press star one on your telephone. If you require any further assistance, please press star and zero. I would now like to hand the conference over to your speaker today. Serena Liegey, please go ahead. Thank you. Good morning and welcome to Logan Ridge Finance Corporation's first quarter 2022 earnings conference call. An earnings press release was distributed yesterday, May 12, after market close. A copy of the release, along with an earnings presentation, is available on the company's website at www.loganridgefinance.com in the investor relations section and should be reviewed in conjunction with the company's Form 10-Q filed yesterday with the SEC. As a reminder, this conference call is being recorded for replay purposes. Please note that today's conference call may contain forward-looking statements which are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the company's filings with the SEC. Logan Ridge Finance Corporation assumes no obligation to update any such forward-looking statements unless required by law. With that, I would now like to turn the call over to Ted Goldthorpe, Chief Executive Officer of Logan Ridge Finance Corporation. Please go ahead, Ted. Good morning. Welcome to our first quarter 2022 earnings call. I am joined today by our Chief Financial Officer, Jason Roos, and our Chief Investment Officer, Patrick Schafer. Following my opening remarks, Patrick will provide additional detail on our investment activity to date, and Jason will walk through the financials. This marks our third completed quarter as a new advisor to Logan Ridge, and I'm pleased to say that we've made significant progress since we began managing the company. Although we have been operating in an environment where there is market volatility, political uncertainty, and rising interest rates, the fair value of our investment portfolio grew to approximately $207 million, driven primarily by unrealized appreciation on the portfolio and the judicious deployment of proceeds generating from exiting the legacy portfolio into interest-earning investments originated by the BC Partners credit platform. Additionally, we are pleased to report that subsequent to quarter end, we successfully refinanced the remainder of Logan Ridge's legacy capital structure, which is a testament to the benefits shareholders receive from our ability to leverage the size and scale of our platform and the strong relationships we have with our lenders and financing partners. Specifically, on April first, we issued a $50 million convertible note. On May 10th, we amended our existing senior secured revolving credit agreement with KeyBank to increase the commitment, reduce the interest rate, and extend its maturity date. The proceeds will be used to repay the $52.1 million of 5.75% convertible notes outstanding, as well as $22.8 million of 6% notes outstanding, both of which are scheduled to mature on May 31st, 2022. These transactions materially lower the cost of debt capital, which will be transformative for the company and an important milestone during our early stewardship. Investors will begin to benefit from a lower cost of debt capital during the third quarter of 2022. With that being said, I'm gonna turn the call over to Patrick Schafer, our Chief Investment Officer. Thanks, Ted. The fair value of our investment portfolio as of March 31st, 2022, grew by $8.7 million - $206.9 million as of March 31st, 2022, from $198.2 million as of the prior quarter, due to unrealized appreciation on the portfolio and net deployment. As of March 31st, 2022, our portfolio consisted of investments in 42 different portfolio companies. We continue to judiciously redeploy capital generated from exiting the legacy portfolio. During the quarter, we made approximately $16.4 million of investments, which outpaced the $8.4 million in repayments and sales, resulting in net deployment of approximately $8 million for the period. Our debt investment portfolio, which represented 68.1% of our total portfolio at fair value, had a weighted average annualized yield of approximately 8.3%, excluding non-accruals and collateralized loan obligations. Regarding non-accruals, as of March 31st, 2022, we had debt investments in two portfolio companies on non-accrual status with an aggregate cost of $12.7 million and fair value of $7.0 million, which represented 6.4% and 3.4% of the investment portfolio, respectively. This remains fairly unchanged from the prior period, which we reported non-accrual debt investments in two portfolio companies with aggregate amortized cost of $12.7 million and an aggregate fair value of $7.6 million. As of March 31st, the first lien debt as a percentage of the portfolio at fair value was 48.7%. Second lien debt was 16.1%. Subordinate debt was 3.4%. Collateralized loan obligations were 3.7%, and our equity portfolio was 28.4%. I'll now turn the call over to Jason. Thanks Patrick. Turning to our financial results for the quarter. Total investment income was $3.3 million for the first quarter of 2022, compared to $4.9 million for the first quarter of 2021. The decline in interest income was due primarily to lower average debt investments as a result of our efforts to de-risk and de-lever the company. Total expenses for the first quarter of 2022 were $4.4 million, compared to $5.7 million for the first quarter of 2021. The decrease in expenses was driven primarily by lower interest and financing expenses, which declined by $800,000, and lower base management fees, which declined by $400,000. Interest in financing costs as well as base management fees declined as a result of managing a smaller portfolio due to our intentional deleveraging of the company. Outside of net investment income for the quarters ended March 31st, 2022 and 2021, we reported $200,000 and $27.2 million of net change in unrealized appreciation in investments, respectively. Additionally, the company reported net realized losses of less than $100,000 and $14 million, respectively, for the same periods. Accordingly, we reported a net decrease in net assets resulting from operations of $900,000 or $0.32 per share during the first quarter of 2022. This compares to a net increase in net assets from operations of $12.4 million or $4.56 per share, and $4.04 per share on a diluted basis for the first quarter of 2021. Net asset value as of quarter end declined slightly to $106.2 million or $39.16 per share, compared to $107.1 million or $39.48 per share as of December 31st, 2021, despite the general uncertainty in the market and environmental conditions. As of March 31st, 2022, we had $15.8 million in cash and cash equivalents, and our total debt-to-equity ratio was 1.18 x. As of March 31st, 2022, we had no outstanding draws on the KeyBank credit facility. Regarding our capital structure, as Ted mentioned, on April 1st, we issued $15 million of convertible notes. The convertible notes mature in April 2032 and bear interest at a fixed rate of 5.25%. The amendment to the KeyBank credit facility increased the initial commitment from $25 million to $75 million, extended the maturity date to 2027 from 2023, and decreased the interest rate to one-month term SOFR plus 290 basis points with a 40 basis point floor during the revolving period from one-month LIBOR plus 350 basis points subject to a 75 basis point floor. The amended credit facility also provides an uncommitted accordion feature that would allow the company to borrow up to an additional $125 million, which will afford us the flexibility to grow the balance sheet. The proceeds will be used to pay off the $52.1 million of 5.75% convertible notes outstanding, as well as the remaining $22.8 million of 6% notes outstanding, both of which mature May 31st, 2022. We continue to closely monitor the increase in federal interest rates and the effect it could have on our net income for the rest of the year and going forward. Although the effect of these geopolitical and macroeconomic factors, including inflation, are outside of our control, our team is focused on prudent risk and portfolio management while pursuing growth. With that, I will turn the call back over to Ted Goldthorpe. Thank you, Jason. We've achieved another solid quarter and are confident that we will continue to grow our portfolio despite the increased turbulence in the economy driven by inflation, supply chain, and the ongoing invasion. We are prudent with our investments and are hopeful for the future. Thank you for all your support. This concludes our prepared remarks, and I will now turn over the call to the operator for any questions. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Our first question comes from Christopher Nolan of Ladenburg Thalmann. Please proceed. Hey, guys. Hey, Chris. Hey, guys. The new capital structure, Jason, any guidance or ideas how much of a per share savings that could represent? I could give you just roughly. I would say life to date, you know, including the finance restructuring that we did last year, I can give it to you in dollars. It's roughly, you know, $600,000 a quarter. Christopher Nolan, this is Patrick Schafer. If you look at our Q4 earnings deck, we show a little bit of a bridge around NII, and one of those bars is the refinancing of the capital structure. The pricing of everything came in kind of exactly as expected, so you could use that chart as a pretty decent proxy to the quarterly impact. Great. Related to that, were there any non-recurring items, expense items or income items in the quarter? Yeah. The expenses, it should give you a pretty good run rate going forward. There was one item in there, around a $70,000, you know, expense we took to write off some of the capitalized expenses for the shelf registration that we had to write off this quarter. Outside of that $70,000, it's a pretty close run rate. Gotcha. I guess, you know, revenues cover expenses, I mean, that seems like to be a key goal, I would think, at this point. Any thoughts as to when we might see a crossover when you guys might be profitable? Yeah. I think from a profitability perspective, the two big focuses or the main focus has been this new facility, which allows us to do a couple of different things, which is one, lower the cost side of the equation, but two, provides us the ability to kind of increase the asset side. We have a $75 million facility, and if we fully drew that facility, that would put us at about 1.3x leverage as compared to the 1.18x where we sit today. Between those two things, those two things should get us in the positive here. The question is how quickly we would deploy that KeyBank facility proceeds plus the cash, depending on market conditions, will kind of be the driver of us getting from, you know, where we are today to something positive. Again, if you kind of think back to the bridge we outlined, I don't think that that gap from where we are today to positive is reliant upon, you know, any significant change in the equity stakes or kind of a rotation of those to get us into the positive. Great. Final question. Decrease in equity as a percentage of total investments at cost, it decreased quarter-over-quarter. Any color around that? No. I have to look. Honestly, I have to look at it. My suspicion is it is because we increased the cost of our other positions as opposed to the equity decreasing, if that makes sense. Got it. That's it for me. I'll get back in the queue. Thanks, guys. Thank you. Thank you. As a reminder, to ask a question, you will need to press star one on your telephone, and to withdraw your question, press the pound key. Our next question comes from Steven Martin of Slater. Please proceed with your question. Hi, guys. You guys have been pretty busy redoing the capital structure, and you got a couple of new investments in the first quarter. Can you comment on what's going on quarter to date in the second quarter? Yeah. Why don't I take it high level? Oh, go ahead, Ted. Yeah, I was gonna say, I'll take it high level then, and then Patrick can drop in. I would say, you know, activity levels have picked up dramatically post quarter end. It feels like a lot of demand for particularly our sponsor verticals was pulled forward into last year, but it feels like that's beginning to normalize. I think, you know, we continue to be very cautious about, you know, everything going on clearly. You know, I'd say activity levels have definitely picked up. Patrick, do you wanna speak more specifically? No. Yeah, that's all right. I think the only thing I would specifically add is we had in Logan, specifically, we had a bit of a unique dynamic where we were obviously closing the credit facility, and we kind of needed to have a relatively static asset list in order to kind of close out a borrowing base and kind of do all of that and get it done and closed. We had a little bit of a period of time where we kinda needed to be relatively quiet from a trading perspective so that we could have a static pool. Generally, as Ted said, our pipeline generally continues to be pretty strong, though we're being, you know, relatively cautious in the environment. We certainly have or we believe we have plenty of opportunities to deploy the cash and credit facility going forward. Well, more specifically, between now and recognizing that you had to be quiet for sort of, you know, the debt reasons, should we expect that between now and the end of the quarter, you will actually fund some transactions? I think that should be the expectation, yes, with the caveat that it's a little bit more unpredictable on the repayment front. Again, where we sit today, there's probably a couple things that we're hoping are gonna happen in the quarter, but you might get to the end of the quarter and still have a net negative deployment just if we happen to have a couple of large repayments, you know, during the quarter. But I think from a pure deployment perspective, yes, you could expect to see us deploy capital from here to the end of the quarter. Well, speaking of specific large repayments, can you update us on Eastport? Um. If you can. Unfortunately, I don't think we're able to provide an update on Eastport at this time. Okay. Given the new refinancing, I'm sure you're expecting this question. Given your discount to NAV, is there anything in the new credit agreements that restricts your ability to repurchase shares at a 50% discount to NAV? No, there's nothing in our facility that would restrict our ability to repurchase shares. Okay, I don't recall. If I'm asking this in error, you don't have a repurchase plan in place, do you? No. Not right now, Steven. It's something that we're thinking through, and it's a good question. I think it's something that you know, might be put in place here in the near future. Okay. With respect to the convertible note, was there a specific reason for the convertible note? Yeah, I think. I think the reason is, I think we're pretty focused on diversity of financing. You know, we don't wanna be too reliant on one source of financing. Obviously, this greatly reduces the amount of convertible debt in our capital structure. So really what we're doing is instead of just doing a one-for-one refi of our convert. I think the decision was made, you know, it's cheaper cost of capital under the bank facilities we have, but we think it's important to maintain access to that market in case we need to use it in the future. Got it. It's a very, very small deal. Yeah, that's why I was questioning it. You know, you had a very big one. Obviously, the portfolio is a lot smaller. I was wondering if there was a more specific requirement or just, you know, the desire for diversification. Yeah. We're constantly thinking about, you know, fixed versus floating liabilities, you know. Obviously the converts are fixed, which, you know, provides some benefit to us. You know, floating is a lower, you know, lower spread. It's something we're always kinda like balancing and thinking about and trying to diversify our our liability side. Okay. Any general comment on the portfolio? I mean, you've put on a whole bunch of new positions and you inherited a whole bunch of old position. You know, you've got a legacy portfolio. You know, any comment on the legacy portfolio vis-à-vis what you know, you expected and or underwrote when you got there? Yeah, I think I would say generally speaking, it's kind of performed in line as we kind of talked before in other forums, mostly the Portman Ridge forum. We normally, you know, underwrite based on only negative things happening, and you always have positive events. We've had a couple of strong performers in the portfolio that have offset, you know, maybe some weakness, particularly with Chief Fire being the biggest one, but we kinda knew that going in to the transaction. I'd say that was kind of expected, that one was struggling. Outside of that, I think kinda generally speaking, in aggregate, the portfolio's performed, you know, relatively in line with our expectations. Okay. I'll turn it over to someone else. Thank you. Our next question comes from David Miyazaki at Confluence Investment Management. Hi. Good morning, and I apologize if this is something that you guys have covered in the past, but I was just kinda wondering with regard to your legacy positions and where, in thinking about where you'd like to be with the new underwriting. When you look at positions that you've inherited that are equity-like, and they're more volatile and they're not generating any current income, but you know, maybe you look at it and think this has a pretty nice IRR, it's just gonna take three or four years to get there, but it's probably got a, I don't know, pick a number, 14% or 15% IRR. How do you prioritize getting out of that and giving up what you see as might be potential upside versus just getting it out of the portfolio and moving on then and having the portfolio positioned as you want it? That's a great question. A very good question, actually. I don't think we've actually had this conversation. When we took over the vehicle. Okay. We were levered at two to one. You know, I think our biggest priority, particularly with this equity book, was to get leverage down, which is kind of done, which gives us now more flexibility on what to do going forward, I would say. The second big priority for us was, you know, refinancing the whole capital structure. You know, we had two big maturities coming due in May, which we just refinanced, as we talked about. Obviously, there's a big laser focused on getting to, you know, NII positive, which, you know, given everything we've said in this call, we're on a track for. You know, we're adding more interest earning assets to our portfolio. We've cut expenses, and we've cut liability costs. To your question, I think we have more time and flexibility to say we really like something. We do think equity as a percentage of the book is still too high. If there's an equity position we think is undervalued or we think we can make a bunch of money on it, obviously, you know, we won't sell it. I would say generally speaking, you know, if we can get fair value or close to something we think is fair value, I think the bias is towards monetizing and putting them into interest earning assets. Right. I think that makes sense given that, you know, I guess I can understand when managers really want to hold on to equity and especially when it's worth a lot. I think in BDC vehicles, the equity just can create so much mark-to-market volatility that it's just not a great vehicle to hold it in. I was just kind of curious to see how you're balancing out maintaining or improving your net asset value and equity base versus kinda getting to where you wanna be. Yeah, I agree. Also, you know, we're also very focused on really diversified funds portfolio. If you compare this to the other BDCs we manage, you know, any large equity position, regardless of how much we like it just doesn't make sense to have concentrated positions in a BDC. Right. I think the big focus from our perspective of getting increased diversity. Would you say that the destination that you're moving toward is gonna have a very similar profile to what you have with the other BDC in the long run? Yeah. Okay. Yeah. I mean, one of the advantages that Logan Ridge shareholders got when we took this over is access to our platform. If you look at our investment activity, most everything we do now is, you know, deals that we're leading across the platform and, you know, Logan Ridge benefits from that. Yeah, our focus is to make this portfolio a lot more boring, you know, get diversified, getting into debt and start driving NII and turn the dividend back on. You wouldn't see, you know, some managers have sort of sister BDCs that are out there where one takes, you know, focus more broadly on the capital structure and another one is more senior focused. Do you not see that? Do you see them being really very comparable to one another? You know, I don't think we're gonna go the route of, like, a senior BDC and a junior BDC. Like, I don't think that's where we're going. I think over time, our BDC should look more and more similar investment-wise, just 'cause that's our franchise. Unless, you know, we're always exploring strategic opportunities as everybody knows. You know, maybe if there's some interesting angle for us to, you know, maximize value for shareholders, we'll go down that road. I think the base case is for us to, you know, make this vehicle look more and more like our other vehicles. Great. Well, thank you very much for your time, and congratulations on the progress. Thank you. Thank you. At this time, I would like to turn the conference back to Ted Goldthorpe for closing remarks. Great. Well, thank you everyone for joining us this morning, and we look forward to speaking to you in mid-August when we announce our 2022 second quarter results. Of course, if anybody has any further questions or any further follow-ups, please feel free to reach out to any member of the management team. Thank you very much and have a great weekend. This concludes today's conference call. Thank you for participating, and you may now disconnect.