BlackRock Kelso Capital Corporation
BlackRock Kelso Capital — BlackRock Capital Investment — Merger or Acquisition (March 2024)
18 slides from BlackRock Kelso Capital's merger presentation, Mar 5, 2024
Slide 1: BlackRock Capital Investment Corporation Investor Presentation March 2024
Investor Presentation March 2024 BLACKROCK CAPITAL INVESTMENT CORPORATION
Slide 2: Important Notice
Important Notice Prospective investors considering an investment in BlackRock Capital Investment Corporation (“BKCC,” the “Company”, “we”, “us” or “our”) should consider the investment objectives, risks and expenses of the Company carefully before investing. This information and other information ab
Slide 3: Important Notice: No Offer or Solicitation
Important Notice No Offer or Solicitation This Presentation is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and this Presentation is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of an offer to purchase any
Slide 4: BlackRock Capital Investment Corporation Overview
BlackRock Capital Investment Corporation Overview BlackRock Capital Investment Corporation (NASDAQ: BKCC) is a publicly traded and externally-managed BDC (business development company). Provides middle-market companies with flexible financing solutions across the capital structure, but with a focus
Slide 5: Proposed Merger with BlackRock TCP Capital Corp.
Proposed Merger with BlackRock TCP Capital Corp. Please see Notes to the Investor Presentation on page 16. 4 On September 6, 2023, we announced that the Company and its affiliated BDC, TCPC, have entered into a definitive agreement pursuant to which the Company will merge with and into a wholly owne
Slide 6: Select Historical Financial Information
Select Historical Financial Information Items above may not foot or cross-foot due to rounding. Please see Notes to the Investor Presentation on page 16. 6 Quarter Ended Full Year Ended Full Year Ended ($ in Thousands, Except per Share Data) 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 12/31/22 12/31/2
Slide 7: Portfolio Activity
Portfolio Activity ($ in Millions) 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 Purchases of Investments, at Cost 2, 11 $ 36.0 $ 37.6 $ 20.8 $ 40.3 $ 25.4 Proceeds from Sales, Repayments and Other Exits11 (27.9) (20.7) (6.5) (43.6) (12.6) Net Deployments (Repayments) $ 8.1 $ 16.9 $ 14.3 $ (3.3) $ 12.8
Slide 8: Portfolio Status
Portfolio Status Portfolio by Internal Investment Rating (by FMV) Portfolio by Non-Accrual Status (by FMV)17 ($ in Millions) 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 Investment Portfolio at Cost 6 $ 658 $ 676 $ 691 $ 689 $ 702 Investment Portfolio at Fair Value 6 570 588 596 595 605 Fair Value % Co
Slide 9: Portfolio Composition by Fair Value at 12/31/2023
Portfolio Composition by Fair Value at 12/31/2023 Portfolio Composition by Issuer Portfolio Composition by Industry15 Portfolio Composition by Asset Class Note: Items above may differ from public filings due to rounding 9
Slide 10: Portfolio Evolution
Portfolio Evolution Please see Notes to the Investor Presentation on page 16. Investment Cost / FMV FMV % Cost 88% 80% 81% 82% 79% 81% 89% 87% 90% 89% 88% 89% 87% 87% 86% 86% 86% NAV per share4 $6.33 $5.35 $4.84 $4.24 $ 4.23 $ 4.35 $ 4.68 $ 4.74 $ 4.73 $ 4.70 $ 4.57 $ 4.56 $ 4.39 $ 4.41 $ 4.33 $ 4.3
Slide 11: Portfolio Construction Targets
Portfolio Construction Targets 0% 5% 10% 15% 20% 25% 30% 35% Actual Q4 2018 Actual Q4 2023 Pro Forma 1.15x Leverage Non-core Asset % First Lien % Equity / Unsecured Asset % 0% 24% 85% 80%+ 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Actual Q4 2018 Actual Q4 2023 Pro Forma 1.15x Leverage 27 121 -10 1
Slide 12: Leverage Profile
Leverage Profile Asset coverage ratio7 of 207% represents a $64.0 million cushion to the minimum required ratio of 150% per BDC regulations7 and under the terms of our revolving credit facility, subject to leverage restrictions8. Undrawn credit facility8 amount of $64.0 million as of 12/31/23. Pleas
Slide 13: Debt Summary
Debt Summary Please see Notes to the Investor Presentation on page 16. Summary of Borrowings Debt Maturity Profile Comparison of Debt Investments and Borrowings ($ in Millions) Security Available Outstanding Available Outstanding Rate Maturity Senior Secured Revolving Credit Facility8 $265 $184 $265
Slide 14: Reconciliation of Net Investment Income/(Loss)
Reconciliation of Net Investment Income/(Loss) Items above may not foot or may differ from public filings due to rounding. Please see Notes to the Investor Presentation on page 16. ($ in Thousands, Except per Share Data) ($) Per Share Per Per Per Per ($) Share ($) Share ($) Per Share ($) Per Share (
Slide 15: Internal Investment Rating System Overview
Internal Investment Rating System Overview 10 BlackRock Capital Investment Advisors, LLC (the “Advisor”)13 employs a grading system for its entire portfolio in which all loans are rated on a scale of 1 to 4. This system is intended to reflect the performance of the borrower’s business, the collatera
Slide 16: Notes to the Presentation
Notes to the Investor Presentation 10 1. Income statement data per share excludes the impact of diluted weighted average shares outstanding. 2. Includes PIK interest and dividends earned during the period presented. 3. As adjusted: The Company reports its financial results in accordance with GAAP; h
Slide 17: Corporate Information
Corporate Information
Slide 18: Corporate Information
Corporate Information 18 Board of Directors* Corporate Officers Other Information Independent Registered Public Accounting Firm Deloitte & Touche LLP Los Angeles, CA Exchange NASDAQ Global Select Market Listed Security BKCC Common Stock Transfer Agent Computershare P.O. BOX 505000 Louisville, KY, 40
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