Mount Logan Capital Inc. Subsidiary Appointed as Investment Adviser of U.S. Business Development Company
02 July 2021 - 6:30AM
Mount Logan Capital Inc. (NEO: MLC) (“Mount Logan” or the
“Company”) today announced that it has completed its previously
announced transaction whereby the Company’s wholly-owned
subsidiary, Mount Logan Management LLC (“ML Management”), has
become the investment adviser of Capitala Finance Corp.
(“Capitala”), a U.S. publicly traded business development company
(“BDC”) with approximately $320 million of total assets as of March
31, 2021. Capitala primarily invests in first lien loans and, to a
lesser extent, second lien loans and equity securities issued by
lower middle market companies.
At the special meeting of Capitala’s
stockholders, over 97% of voting stockholders approved the new
advisory agreement between Capitala and ML Management. In
connection with the new investment adviser appointment, Capitala
changed its name to “Logan Ridge Finance Corporation” (“Logan
Ridge”) and changed its trading symbol from “CPTA” to “LRFC” and
its common stock will begin trading on NASDAQ under the new name
and symbol effective July 2, 2021. As the investment adviser of
Logan Ridge, ML Management is entitled to a 1.75% annual base
management fee on gross assets as well as an incentive fee tied to
performance.
Ted Goldthorpe, Chief Executive Officer and
Chairman of Mount Logan, noted, “We are pleased to complete our
transaction with Capitala and to begin serving as the external
manager of Logan Ridge. We look forward to providing our expertise
in sourcing and investment advisory to add value for shareholders
of Logan Ridge. Furthermore, the asset management contract with
Logan Ridge provides a stable and recurring asset management fee
stream underpinned by a permanent capital vehicle thus fulfilling
Mount Logan’s ongoing transition towards asset management
activities.”
Separately, pursuant to an asset purchase
agreement, ML Management acquired from Capitala Investment
Advisors, LLC, the former investment adviser of Capitala, certain
assets related to the business of providing investment management
services to Capitala.
About Mount Logan Capital
Inc.
Mount Logan Capital Inc. is an alternative asset
management company that is focused on public and private debt
securities in the North American market. The Company actively
sources, evaluates, underwrites, manages, monitors and primarily
invests in loans, debt securities, and other credit-oriented
instruments that present attractive risk-adjusted returns and
present low risk of principal impairment through the credit
cycle.
About Logan Ridge Finance
Corporation
Logan Ridge Finance Corporation (NASDAQ: LRFC)
is a business development company that invests primarily in first
lien loans and, to a lesser extent, second lien loans and equity
securities issued by lower middle market companies. Logan Ridge
invests in performing, well-established middle market businesses
that operate across a wide range of industries. It employs
fundamental credit analysis, targeting investments in businesses
with relatively low levels of cyclicality and operating risk. For
more information, visit http://www.loganridgefinance.com.
Cautionary Statement Regarding
Forward-Looking Statements
This press release contains forward-looking
statements and information within the meaning of applicable
securities legislation (collectively referred to herein as
“forward-looking statements”). Forward-looking statements can be
identified by the expressions "seeks", "expects", "believes",
"estimates", "will", "target" and similar expressions. The
forward-looking statements are not historical facts, but reflect
the current expectations of management of the Company regarding
future results or events and are based on information currently
available to them. Certain material factors and assumptions were
applied in providing these forward-looking statements. The
forward-looking statements discussed in this press release may
include, but are not limited to, statements relating to the
Company’s transition to an asset management business model; the
management fee generation and duration of the advisory agreement
with Logan Ridge; any change in earnings potential for the Company
as a result of any growth of Logan Ridge and the combined company;
the expected trading date of the shares of Logan Ridge; and
statements relating to the business and future activities of the
Company. All forward-looking statements in this press release are
qualified by these cautionary statements. The Company believes that
the expectations reflected in forward-looking statements are
reasonable based on upon the information available at the time such
information was given; however, the Company can give no assurance
that the actual results or developments will be realized by certain
specified dates or at all. These forward-looking statements are
subject to a number of risks and uncertainties that could cause
actual results or events to differ materially from current
expectations, including the risk that ML Management may cease to be
the investment adviser for Logan Ridge and may not enter into
further asset management agreements in order to scale and grow its
business, the risk that Logan Ridge does not scale and grow its
business in a way that provides a significant benefit to the
Company, the Company has a limited operating history with respect
to an asset management business model as well as the matters
discussed under "Risk Factors" in the most recently filed annual
information form and management’s discussion and analysis for the
Company. Readers, therefore, should not place undue reliance on any
such forward-looking statements. Further, a forward-looking
statement speaks only as of the date on which such statement is
made. The Company undertakes no obligation to publicly update any
such statement or to reflect new information or the occurrence of
future events or circumstances except as required by securities
laws. The forward-looking statements in this press release are made
as of the date of this press release.
This press release is not, and under no
circumstances is it to be construed as, a prospectus or an
advertisement, and the communication of this press release is not,
and under no circumstances is it to be construed as, an offer to
sell or a solicitation of an offer to purchase securities of the
Company or in any fund or other investment vehicle. This press
release is not intended for U.S. persons. The Company’s shares are
not and will not be registered under the U.S. Securities Act of
1933, as amended, and the Company is not and will not be registered
under the 1940 Act. U.S. persons are not permitted to purchase the
Company’s shares absent an applicable exemption from registration
under each of these Acts. In addition, the number of investors in
the United States, or which are U.S. persons or purchasing for the
account or benefit of U.S. persons, will be limited to such number
as is required to comply with an available exemption from the
registration requirements of the 1940 Act.
For additional information, contact:
Jason RoosChief Financial
OfficerJason.Roos@mountlogancapital.ca
Mount Logan Capital Inc.365 Bay Street, Suite
800Toronto, ON M5H 2V1
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