BlackRock TCP Capital Corp. · NASDAQ:TCPC
BlackRock TCP Capital — Q1 2019 Earnings Presentation
19 slides from BlackRock TCP Capital's earnings presentation, Mar 31, 2019
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation March 31, 2019
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 March 31, 2019 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 secu
Slide 4: 2019 Year to Date Financial and Portfolio Highlights
2019 Year to Date Financial and Portfolio Highlights As of March 31, 2019, unless otherwise noted Dividend Coverage ▪ Net investment income of $0.40; dividend of $0.36 per share Disciplined ▪ Deployment of $150 million gross; $4 million net of dispositions Deployment ▪ Effective yield on the debt po
Slide 5: Well-Covered and Consistent Dividend
Well-Covered and Consistent Dividend Net investment income of $0.40 per share Declared Q2 2019 dividend of $0.36 in Q1 2019 per share Quarterly dividend of $0.36 per share paid Payable on June 28, 2019 to holders of record on March 29, 2019 as of June 14, 2019 Dividend covered in all 28 quarters sin
Slide 6: 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 7: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet Predominantly Floating Rate Asset Portfolio Liabilities Primarily Fixed Rate 8% Fixed Rate 36% Fixed Rate Floating Rate Floating Rate 64% 92% Positive annual impact on net income of base rate increases in interest rates (1) Basis Point Change Net Investment Inc
Slide 8: Strong Track Record of Positive Performance
Strong Track Record of Positive Performance Book Value per Share and Dividends Paid As of Book Value per Share Cumulative Dividends Paid per Share (Post IPO) 3/31/2019: $26.00 $24.46 $24.00 $22.00 $20.00 $10.28 $18.00 $16.00 $14.00 $14.18 $12.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15 Q1-16
Slide 9: TCPC Relative Outperformance
TCPC Relative Outperformance Outperformed the Wells Fargo BDC Index by 37% since our IPO(1) BlackRock TCP Capital Corp. Wells Fargo Business Development Company Index As of 3/31/2019 200% 190% TCPC: 86.8% 180% 170% 160% WFBDC: 63.2% 150% 140% 130% 120% 110% 100% 90% (1) Assumes a fixed investment on
Slide 10: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s $6.5 trillion(1) investment platform creates substantial scale and scope that provides insight, access, and expertise in sourcing and underwriting differentiated investment opportunities Global Credit Expertise Information Edge One Stop Shop ▪ $98 bill
Slide 11: Breadth and Depth of the BlackRock's Global Credit Platform
Breadth and Depth of the BlackRock’s Global Credit Platform Global Credit AUM: $98 billion(1) Leveraged Finance Multi-Strategy Credit Private Credit ▪ High Yield ▪ Pan-Credit Solutions ▪ Direct Lending ▪ Bank Loans ▪ Hedge Fund Strategies ▪ Opportunistic Credit ▪ CLOs ▪ Specialty Finance BlackRock I
Slide 12: TCPC's Risk-Mitigated Platform Well-Positioned in Today's Environment
TCPC’s Risk-Mitigated Platform Well-Positioned in Today’s Environment Middle-Market Environment Opportunities Challenges ▪ ~200,000(1) U.S. middle-market businesses, ▪ Uptick in new market participants is intensifying representing one-third of private sector GDP, many competition and pressuring yiel
Slide 13: Quarterly Operating Results
Quarterly Operating Results 2019 2018 Unaudited ($ in thousands, except per share amounts) Q1 Q4 Q3 Q2 Q1 Investment income Interest income $46,977 $ 47,657 $ 49,348 $ 48,318 $ 43,825 Lease income 74 74 74 74 74 Dividend income 480 646 59 29 18 Other income 9 6 - - 298 Total investment income 47,540
Slide 14: Financial Highlights
Financial Highlights 2019 2018 Unaudited Unaudited ($ per share) Q1 Q4 Q3 Q2 Q1 Net investment income 0.40 0.40 0.42 0.41 0.37 Net realized & unrealized gains (losses) 0.01 (0.42) (0.16) (0.34) 0.09 Net increase in net assets from operations 0.41 (0.02) 0.26 0.07 0.46 Dividend paid (0.36) (0.36) (0.
Slide 15: Portfolio Highlights
Portfolio Highlights 2019 2018 Asset Mix of the Investment Portfolio Q1 Q4 Q3 Q2 Q1 (in thousands) Senior secured debt $1,476,326 $1,471,583 $ 1,433,044 $ 1,490,181 $ 1,505,586 Junior debt 43,722 43,526 43,277 43,009 42,750 Equity 84,780 82,177 83,792 80,641 72,052 Total investments $1,604,828 $ 1,5
Slide 16: Quarterly Balance Sheets
Quarterly Balance Sheets 2019 2018 (in thousands, except per share data) Unaudited Audited Unaudited Unaudited Unaudited ASSETS Q1 Q4 Q3 Q2 Q1 Investments at fair value $ 1,604,828 $ 1,597,286 $ 1,560,113 $ 1,613,831 $ 1,620,388 Cash and cash equivalents 26,752 27,920 90,283 27,592 13,737 Accrued in
Slide 17: 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 18: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Standard & Poor’s and Moody’s As of March 31, 2019, $ in millions Source Capacity Drawn Amount Available Pricing Maturity SVCP 2022 Facility $ 170.0 (1) $ 85.0 $ 85.0 L + 2.25% (1) Feb-22(1) 2019 Convertible Notes 107.6 (2) 107.6 - 5.2
Slide 19: 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 ▪ D.A. Davidson Corporate Headquarters ▪ Deutsche Bank ▪ JMP Sec
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