Logan Ridge Finance Corporation (NASDAQ:LRFC) Q1 2023 Earnings Call Transcript

Ted Goldthorpe: Yes, I think it’s what Patrick said. I think it’s – I don’t think that – I don’t – unfortunately, I don’t think it’s environmental. I don’t think it’s thematic. I think it’s situation-specific. So each company is going through different things. Some good, some bad. And I think it’s just a – like that’s just like where the math came out. I don’t think there’s a broad – I don’t think we’re seeing a broad “slowdown” across the portfolio. I think what the puts and takes on the valuations, I think, are around very company-specific outcomes. So again, like post-COVID, some are doing much better, and some others are facing some headwinds.

Steven Martin: Okay. The buyback, was there something that inhibited the buyback? 1,625 shares is – it’s great that we’ve commenced. It’s not a particularly meaningful number?

Jason Roos: Yes. I think you’ll be pleasantly surprised in Q2 because the timing, basically, it was seven days of possible buyback opportunity for us in the quarter because when the blackout window opened up in March. So between, I think, March 23, it was the first day we were actually buying back shares in the Q1, but that program has been put in place now while we were outside of a blackout window, and we’ll continue to be buying back shares each day.

Ted Goldthorpe: Yes. Okay. I mean obviously, we bought more of stock in the second quarter than we bought in the first quarter, and we’re only one – we’re only – we just – we’re only not done in the quarter yet, obviously.

Steven Martin: Got you. You’re using the 10b5, so it’s sort of automatic somehow?

Patrick Schafer: Correct.

Steven Martin: Okay. And how do you feel about leverage right now, the ratio in the – your leverage ratio, gross net?

Patrick Schafer: We feel pretty good. I’d say we’re at the lower end of sort of our general range of 1.25 to 1.4. That said, again, I think the portfolio composition of Logan is a little bit heavier equity. So we kind of want to be a little bit on the lighter side of that range kind of generally. But also, again, as we see opportunities in the market, I think we would feel comfortable about increasing that leverage rate to expand new capital sorry, to make new investments.

Steven Martin: Got it. Alright. Thanks a lot.

Patrick Schafer: Thank you.

Operator: This concludes our Q&A for today. I turn the call back to Ted Goldthorpe for closing remarks.

Ted Goldthorpe: Great. Well, thank you very much for everyone attending today, and we look forward to speaking to you all again in August when we announce our second quarter 2023 results. Thank you, and have a good day.

Operator: This concludes today’s conference call. You may now disconnect.