Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Investor Presentation (March 2020)
25 slides from Blackrock Tcp Capital's investor presentation, March 2020
Slide 1: BlackRock TCP Capital Corp. Investor Presentation March 2020
BlackRock TCP Capital Corp. Investor Presentation March 2020
Slide 2: Forward Looking Statements
Forward Looking Statements Prospective investors considering an investment in BlackRock TCP Capital Corp. should consider the investment objectives, risks and expenses of the Company carefully before investing. This information and other information about the Company are available in the Company's f
Slide 3: BlackRock TCP Capital Corp – Key Highlights
BlackRock TCP Capital Corp – Key Highlights As of December 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 s
Slide 4: Today's Middle Market Environment
Today’s 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, competition and pressuring yields many with limited access to capital Middle market businesses continu
Slide 5: Capturing Opportunities Throughout the Cycle
Capturing Opportunities Throughout the Cycle Late Cycle Downturn Early Cycle Mid Cycle Tight Financing Easy Financing Excess Capacity Excess Demand Strategy attributes are well positioned for a late stage cycle ✓ Senior secured, top of the capital structure ✓ Significant cushion below investment (ge
Slide 6: Multi-Channel Deal Sourcing
Multi-Channel Deal Sourcing Extensive and diverse network, and channel agnostic approach to sourcing designed to generate attractive investments across market cycles BlackRock Private Capital Industry / Sector Networks Markets (BPCM) Investor Relationships Reciprocal Credit Firm Network of Industry
Slide 7: Disciplined Investment Process
Disciplined Investment Process Industry deal teams are involved in every phase of a transaction from sourcing to eventual liquidity Rigorous Due Investment Portfolio Realizations / Diligence & Structuring Committee Management Liquidity ▪ Time-tested credit ▪ Thorough review of due ▪ Holistic approac
Slide 8: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s $7.4 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 ▪ $115 bil
Slide 9: Breadth and Depth of the BlackRock's Global Credit Platform
Breadth and Depth of the BlackRock’s Global Credit Platform Global Credit AUM: $115 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
Slide 10: Differentiated focus within U.S. leveraged lending market
Differentiated focus within U.S. leveraged lending market Lower Yield Higher Yield Less Downside Management More Downside Management Broadly Middle Market Middle Market Syndicated Loans Syndicated Loans Private Loans Tranche Sizes $300 million+ $200 – $300 million $25 – $200 million New Issue Pricin
Slide 11: Case Study: Mesa Airline – Aircraft Leasing
Case Study: Mesa Airline– Aircraft Leasing Key Terms Aircraft Acquisition Investment Type: Coupon: L + 7.25% Loan Tranche Size: $100.3 million Floor Protection: 0.5% Primary Industry: Air Transport Call Protection: 105/103/101.5 Price at Country: USA 98.25 Investment: Investment Overview Sourcing •
Slide 12: Case Study: First Advantage – Business Services
Case Study: First Advantage – Business Services Key Terms Investment Type: 2nd Lien Term Loan Coupon: L + 9.25% Tranche Size: $150 million Floor Protection: 1.0% Primary Industry: Business Services Call Protection: 103/102/101/100 Price at Country: USA 98.50 Investment: Investment Overview Investmen
Slide 13: Consistent and Disciplined Portfolio Growth
Consistent and Disciplined Portfolio Growth Total Investments = $1.6 billion Equity Fixed rate debt Floating rate debt $1,800 $1,600 $1,400 $1,200 Dollars in millions $1,000 $800 $600 $400 $200 $ Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q4-14 Q2-15 Q4-15 Q2-16 Q4-16 Q2-17 Q4-17 Q2-18 Q4-18 Q2-19 Q4-19 13
Slide 14: Conservatively Positioned and Diversified Portfolio
Conservatively Positioned and Diversified Portfolio Majority of our portfolio 10.3% 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 15: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet Predominantly First-lien, Floating Rate Asset Portfolio Liabilities Primarily Fixed Rate 1% 8% 18% 29% First Lien Floating Rate Second Lien Fixed Rate Junior Fixed Rate Floating Rate 71% 81% 92% Annual impact on net income of changes in interest rates(1) Basis
Slide 16: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Standard & Poor’s and Moody’s As of December 31, 2019, $ in millions Source Capacity Drawn Amount Available Pricing Maturity SVCP Facility $ 270.0 $ 108.5 $ 161.5 L + 2.00% (4) May-23 TCPC Funding Facility 300.0 158.0 142.0 L + 2.00% (
Slide 17: Well-Covered and Consistent Dividend
Well-Covered and Consistent Dividend Net investment income of $0.38 per share Declared Q1 2020 dividend of $0.36 in Q4 2019 per share Out-earned quarterly dividend of $0.36 per share paid Payable on March 31, 2020 to holders of record on December 31, 2019 as of March 17, 2020 Dividend covered in all
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: 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) 12/31/2019: $26.00 $24.57 $24.00 $22.00 $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15
Slide 20: TCPC Outperformance
TCPC Outperformance Outperformed the Wells Fargo BDC Index by 23% since our IPO(1) As of 1/31/2020 TCPC: 102.3% WFBDC: 83.2% (1) Assumes a fixed investment on April 6, 2012 in BlackRock TCP Capital Corp. and the Wells Fargo Business Development Company Index. Assumes all dividends are reinvested on
Slide 21: 2019 Highlights
2019 Highlights As of December 31, 2019 ▪ Deployed $700 million gross, $104 million net of dispositions, of which 94% was in senior Disciplined secured debt Deployment ▪ Diverse portfolio invested in 105 companies across a wide range of industries, with an average portfolio position of just $15.7 mi
Slide 22: Appendix
Appendix BLACKROCK’ za TCP su
Slide 23: Financial Highlights
Financial Highlights For the For the Year Ended Quarter Ended Unaudited Audited ($ per share) Q4 2019 Q3 2019 Q2 2019 Q1 2019 2018 2017 2016 2015 Net investment income 0.38 0.43 0.41 0.40 1.59 1.59 1.50 1.63 Net realized & unrealized gains (losses)(1) (0.40) (0.12) (0.59) 0.01 (0.82) (0.40) 0.00 (0.
Slide 24: Portfolio Highlights
Portfolio Highlights For the For the Year Ended Quarter Ended Asset Mix of the Investment Portfolio Q4 2019 Q3 2019 Q2 2019 Q1 2019 2018 2017 2016 2015 (in thousands) Senior secured debt $ 1,513,909 $1,555,934 $1,558,763 $1,476,326 $1,471,583 $1,404,729 $1,248,888 $1,129,571 Junior debt 21,285 20,76
Slide 25: 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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