Portman Ridge Finance Corp (NASDAQ:PTMN) is trading lower in the pre-market session on Thursday.
Major Trigger:
Portman Ridge Finance Corporation Completes Merger with Harvest Capital Credit Corporation
Key Highlights:
- announced the closing of the previously announced merger with Harvest Capital Credit Corporation (formerly NASDAQ: HCAP) (“HCAP”). The combined company, which will remain externally managed by Sierra Crest Investment Management LLC (“Sierra Crest”), an affiliate of BC Partners Advisors L.P. (“BC Partners”), is expected to have total assets of approximately $614 million and net asset value of approximately $268 million after closing.
- a cash payment from Sierra Crest of $2.15 million, or approximately $0.36 per share of HCAP common stock, plus
- aggregate merger consideration from PTMN composed of (i) approximately $18.5 million in cash and (ii) approximately 15.3 million shares of PTMN common stock.
- With respect to the merger consideration from PTMN, HCAP stockholders were entitled, with respect to all or any portion of the shares of HCAP common stock they held as of the effective time of the merger, to elect to receive the merger consideration in the form of cash (an “Election”) or PTMN common stock, subject to certain conditions and limitations in the merger agreement.
Market Reaction
As of 8:37, PTMN stock down by 1.95% to $2.38. The stock has traded 1K so far in the pre-market session.
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