Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — Kohlberg Capital — Investor Presentation (2012)
15 slides from Bcp Investment's investor presentation, 2012
Slide 1: Investor Presentation Second Quarter 2012
Investor Presentation Second Quarter 2012
Slide 2: Safe Harbor Statement – Private Securities Litigation Reform Act of 1995
SAFE HARBOR STATEMENT – PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 F Forward dLLooking ki Information I f ti This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The matters discussed in this presenta
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS Internally managed structure Innovative Strategy and Platform 100% ownership of CLO fund Asset Manager Affiliates (Katonah Debt Advisors and Trimaran Advisors) Highly Experienced Seasoned S d management team with i h average industry i d tenure off 25+ 25 years Management
Slide 4: Overview – Business Model
OVERVIEW – BUSINESS MODEL Internally managed BDC with a diversified portfolio of corporate credit investments and an attractive asset management business Kohlberg Capital Corporation NASDAQ: “KCAP” Principal Investing Managed Funds Corporate Loan Investments Asset Managers Affiliates $136 million
Slide 5: Quarterly Dividends
QUARTERLY DIVIDENDS 2012 Dividend Yield First quarter $ 0.18 10% 2011 Dividend Yield Fourth quarter $ 0.18 11% Third quarter $ 0.18 12% Second quarter $ 00.17 17 9% First quarter $ 0.17 8% $ 0.52 2010 Fourth quarter $ 0.17 10% Third quarter $ 0.17 10% Second quarter $ 00.17 17 14% First quarter $ 0.
Slide 6: Portfolio Highlights
PORTFOLIO HIGHLIGHTS ASSET MIX 1Q12 4Q11 3Q11 2Q11 1Q11 First Lien 25% 22% 22% 15% 12% Investments at Fair Value (in thousands) Second Lien / Mezz 23% 33% 34% 38% 34% $300,000 CLO 23% 23% 22% 24% 29% $250,000 Asset Manager Affiliates 27% 19% 20% 20% 22% $200,000 Equity 2% 3% 3% 3% 4% $150,000 $100,0
Slide 7: Investment Portfolio
INVESTMENT PORTFOLIO A balanced investment risk / return profile 1Q12 Portfolio Statistics 2nd Lien / KDA/Asset Mezz Manager 23% 27% Total Portfolio: Fair value $281 million Equity Portfolio Book value $336 million 2% Portfolio (excluding KDA & CLO Securities): Fair value $136 million CLO Mezz Book
Slide 8: Portfolio Highlights
PORTFOLIO HIGHLIGHTS PORTFOLIO LOAN SECURITIES - INDUSTRY DIVERSIFICATION Aerospace and Defense Healthcare, Education and Childcare 16% 20% Home and Office Furnishings, Housewares, and Durable Consumer Products Beverage, Food and Tobacco Time Deposit and Money Market Accounts 3% 12% Personal and Non
Slide 9: Strong Credit Quality
STRONG CREDIT QUALITY Experienced management team has led to strong credit performance in a challenging environment Only O l four f portfolio f li companies i on non-accruall status as off March M h 3131, 2012 Hard Watch List represents less than 1% of total assets (four issuers) Three of the
Slide 10: CLO Fund Portfolio
CLO FUND PORTFOLIO Understanding risks and return CLO Fund Structure CLO Fund Statistics Remaining financing term 8 years Fair value $63 million Current portfolio yield L + 357 bps Par $95 million W/A cost of debt capital L + 55 bps Cost $79 million Net interest spread 302 bps Diversity: Fees and ex
Slide 11: Leverage
LEVERAGE Low Leverage and Room for Growth Relative to Peers Convertible notes and an additional $30 million in available borrowing capacity through a new secured facility Debt–to–equity of 0.29x based on net asset value of $207 million for the quarter ended March 31, 2012 Asset coverage at 445
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS 1Q12 4Q11 3Q11 2Q11 1Q11 4Q10 Earnings per share $ 0.28 $ 0.31 $ 0.32 $ 0.26 $ 0.32 $ 0.30 Net investment income per share $ 0 15 0.15 $ 00.18 18 $ 00.18 18 $ 00.12 12 $ 0.22 0 22 $ 0.23 0 23 Net realized and unrealized gain (loss) per $ (0.12) $ (0.24) $ (0.24) $ (0.08) $ 0.20
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS NET ASSET VALUE INVESTMENT PORTFOLIO March 31, 2012 Fair Value NAV per Share March 31, 2012 Cost Fair Value Investments at ffair value: Senior secured loan $ 79,891,869 , , $ 71,084,981 , , Debt securities $ 136,356,490 $ 5.12 Junior secured loan 59,306,011 46,674,886 CLO Fund s
Slide 14: Summary of KCAP Attributes
SUMMARY OF KCAP ATTRIBUTES Dynamic business model generates sustainable dividends Sustainable, recurring revenues not dependent on capital gains Recurring interest income from secured loan and CLO portfolios Stable asset management fee income from Asset Manager Affiliates New investments in
Slide 15: Kohlberg Capital Corporation Q&A
KOHLBERG CAPITAL CORPORATION Q&A