BlackRock TCP Capital Corp. · NASDAQ:TCPC
BlackRock TCP Capital — Investor Presentation (December 2018)
20 slides from BlackRock TCP Capital's investor presentation, Dec 31, 2018
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation December 31, 2018
Slide 2: Forward Looking Statements
Forward Looking Statements Prospective investors considering an investment in BlackRock TCP Capital Corp. should consider the investment objectives, ris ks and expenses of the Company carefully before investing. This information and other information about the Company are available in the Company's
Slide 3: BlackRock TCP Capital Corp – Key Highlights
BlackRock TCP Capital Corp – Key Highlights As of December 31, 2018 Who we are What we do How we do it $1.6 billion diversified portfolio Advised by Tennenbaum Capital Value-oriented investing primarily composed of directly Partners (“TCP”) with a 20-year focused on middle-market originated senior s
Slide 4: 2018 Highlights
2018 Highlights Asset Coverage ▪ TCPC’s Board of Directors and shareholders approved a decrease in the minimum asset Ratio coverage requirement from 200% to 150%, effective February 9, 2019 ▪ Lowered the base management fee rate on assets financed with leverage above 1.0x debt to Investor Friendly e
Slide 5: Fourth Quarter 2018 Financial and Portfolio Highlights
Fourth Quarter 2018 Financial and Portfolio Highlights As of December 31, 2018 Dividend Coverage ▪ Net investment income of $0.40; dividends of $0.36 per share Deployment ▪ Deployment of $176 million gross; $59 million net of dispositions ▪ Effective yield on the debt portfolio of 11.4%(1) Portfolio
Slide 6: Well-Covered and Consistent Dividend
Well-Covered and Consistent Dividend Net investment income of $0.40 per share Declared Q1 2019 dividend of $0.36 in Q4 2018 per share Quarterly dividend of $0.36 per share paid Payable on March 29, 2019 to holders of record on December 31, 2018 as of March 15, 2019 Dividend covered in all 27 quarter
Slide 7: Conservatively Positioned and Diversified Portfolio
Conservatively Positioned and Diversified Portfolio Majority of our portfolio 11.4% weighted $1.6 billion 92% of portfolio companies contribute average effective yield portfolio fair value is senior secured debt <1% to recurring income on debt portfolio(1) Diversified Income Contribution Industry Di
Slide 8: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet Predominantly Floating Rate Asset Portfolio Liabilities Primarily Fixed Rate 7% Fixed Rate 36% Fixed Rate Floating Rate Floating Rate 64% 93% Positive annual impact on net income of base rate increases in interest rates (1) Basis Point Change Net Investment Inc
Slide 9: Strong Track Record of Positive Performance
Strong Track Record of Positive Performance Book Value per Share and Dividends Paid Book Value per Share Cumulative Dividends Paid per Share (Post IPO) As of 12/31/2018: $26.00 $24.05 $24.00 $22.00 $20.00 $ 9.92 $18.00 $16.00 $14.76 $14.00 $12.00 $14.13 $10.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1
Slide 10: TCPC Relative Outperformance
TCPC Relative Outperformance Outperformed the Wells Fargo BDC Index by 52% since our IPO(1) BlackRock TCP Capital Corp. Wells Far go Business Development Company Index 200% As of 12/31/2018 190% 180% 170% TCPC: 69.1% 160% 150% 140% WFBDC: 45.5% 130% 120% 110% 100% 90% (1) Assumes a fixed investment
Slide 11: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s $6.0 trillion(1) investment platform creates substantial scale and scope that seeks to provide insight, access, and expertise in sourcing and underwriting differentiated investment opportunities Global Credit Expertise Information Edge One Stop Shop ▪
Slide 12: Breadth and Depth of the BlackRock's Global Credit Platform
Breadth and Depth of the BlackRock’s Global Credit Platform Global Credit AUM: $93 billion(1) Leveraged Finance Multi-Strategy Credit Private Credit ▪ High Yield ▪ Pan-Credit Solutions ▪ Direct Lending ▪ Bank Loans ▪ Hedge Fund Strategies ▪ Opportunistic Credit ▪ CLOs ▪ Specialty Finance BlackRock I
Slide 13: TCPC's Risk-Mitigated Platform Well-Positioned in Today's Environment
TCPC’s Risk-Mitigated Platform Well-Positioned in Today’s Environment Middle-Market Environment Opportunities Challenges ▪ ~200,000(1) U.S. middle-market businesses, ▪ Uptick in new market participants is intensifying representing one-third of private sector GDP, many competition and pressuring yiel
Slide 14: Quarterly Operating Results
Quarterly Operating Results 2018 2017 Unaudited ($ in thousands, except per share amounts) Q4 Q3 Q2 Q1 Q4 Investment income Interest income $ 47,657 $ 49,348 $ 48,318 $ 43,825 $ 46,424 Lease income 74 74 74 74 71 Dividend income 646 59 29 18 237 Other income 6 - - 298 375 Total investment income 48,
Slide 15: Financial Highlights
Financial Highlights 2018 2017 Unaudited Unaudited ($ per share) Q4 Q3 Q2 Q1 Q4 Net investment income 0.40 0.42 0.41 0.37 0.41 Net realized & unrealized gains (losses) (0.42) (0.16) (0.34) 0.09 (0.18) Net increase in net assets from operations (0.02) 0.26 0.07 0.46 0.23 Dividend paid (0.36) (0.36) (
Slide 16: Portfolio Highlights
Portfolio Highlights 2018 2017 Asset Mix of the Investment Portfolio Q4 Q3 Q2 Q1 Q4 (in thousands) Senior secured debt $1,471,583 $ 1,433,044 $ 1,490,181 $ 1,505,586 $ 1,404,729 Junior debt 43,526 $ 43,277 $ 43,009 $ 42,750 $ 41,008 Equity 82,177 $ 83,792 $ 80,641 $ 72,052 $ 68,796 Total investments
Slide 17: Quarterly Balance Sheets
Quarterly Balance Sheets 2018 2017 (in thousands, except per share data) Unaudited Unaudited ASSETS Q4 Q3 Q2 Q1 Q4 Investments at fair value $ 1,597,286 $ 1,560,113 $ 1,613,831 $ 1,620,388 $ 1,514,533 Cash and cash equivalents 27,920 90,283 27,592 13,737 86,625 Accrued interest income 21,701 22,517
Slide 18: Investor Friendly Advisory Fee Structure
Investor Friendly Advisory Fee Structure BlackRock TCP Capital Corp. BlackRock TCP Capital Corp. Average Externally Managed (Thru 2/8/2019) (Post 2/8/2019) BDC(1) 1.5% on gross assets (less cash 1.5% up to 1.0x debt to equity; 1.50% - 1.75% on gross assets and cash equivalents) 1.0% above 1.0x
Slide 19: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Standard & Poor’s and Moody’s As of December 31, 2018, $ in millions Source Capacity Drawn Amount Available Pricing Maturity SVCP 2022 Facility $ 170.0 $ 82.0 (4) $ 88.0 L + 2.25% Feb-22 2019 Convertible Notes 107.5 (1) 107.5 - 5.25% D
Slide 20: Corporate Information
Corporate Information Securities Listing Transfer Agent NASDAQ: TCPC Equiniti Shareholder Services (800) 468-9716 (from U.S.) Research Coverage (651) 450-4064 (from outside U.S.) www.shareowneronline.com ▪ Bank of America Merrill Lynch ▪ Citigroup Global Markets Corporate Headquarters ▪ D.A. Davidso
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