Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — TCP Capital — Q1 2018 Earnings Presentation
18 slides from Blackrock Tcp Capital's earnings presentation, May 9, 2018
Slide 1: TCP Capital Corp. Investor Presentation Quarter Ended March 31, 2018
TCP Capital Corp. Investor Presentation Quarter Ended March 31, 2018 © 2018 Tennenbaum Capital Partners, LLC. All Rights Reserved.
Slide 2: Forward Looking Statements
Forward Looking Statements Prospective investors considering an investment in 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 filings wit
Slide 3: TCP Capital Corp. Overview
TCP Capital Corp. Overview Business development company (BDC) Trades on NASDAQ: “TCPC” TCPC Expects to distribute most of its earnings as dividends(1) 9.8% current dividend yield(2) Investment We seek to generate high total returns through current income and Objective capital appreciation, w
Slide 4: First Quarter 2018 Highlights
First Quarter 2018 Highlights Dividend Net investment income of $0.37; dividends of $0.36 per share Coverage Deployment Deployment of $169 million gross; $98 million net of dispositions Capital Markets $100 million revolving credit facility at L+2.25% closed in February Access Effective yiel
Slide 5: Well-Covered and Stable Dividend
Well-Covered and Stable Dividend Net investment income of $0.37 per share in Q1 2018 Quarterly dividend of $0.36 per share paid on March 30, 2017 Declared Q2 2018 dividend of $0.36 per share Payable on June 29, 2018 to holders of record as of June 15, 2018 Dividend covered in all 24 quarte
Slide 6: Strong Track Record of Positive Performance
Strong Track Record of Positive Performance Book Value per Share and Dividends Paid $26.00 $23.74 $24.00 $22.00 $20.00 $8.84 $18.00 $16.00 $14.76 $14.90 $14.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15 Q1-16 Q3-16 Q1-17 Q3-17 Q1-18 Book Value per Share Cumulative Dividends Paid per Share (Pos
Slide 7: TCPC Relative Outperformance
TCPC Relative Outperformance Out-performed the Wells Fargo BDC Index by 42% since our IPO Total Return Performance(1) 200% 190% As of 3/31/2018 180% TCPC: 69.5% 170% 160% 150% WFBDC: 48.8% 140% 130% 120% 110% 100% 90% 2012 2013 2014 2015 2016 2017 TCP Capital Corp. Wells Fargo Business Development C
Slide 8: Conservatively Positioned and Diversified Portfolio
Conservatively Positioned and Diversified Portfolio $1.6 billion portfolio fair value 93% of portfolio is senior secured debt Investment by Industry Majority of our portfolio companies 11.3% weighted average effective yield on contribute <1% to recurring income debt portfolio(1) Diversified
Slide 9: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet Primarily Floating Rate Asset Portfolio Liabilities Primarily Fixed Rate Floating Fixed Rate 33% Rate 12% Floating Rate 88% Fixed Rate 67% Positive annual impact on net income of base rate increases in interest rates(1): Net Investment Net Investment Income Bas
Slide 10: Portfolio Highlights
Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Senior secured debt $ 1,505,586 $ 1,404,729 $ 1,463,295 $ 1,378,055 $ 1,273,608 Junior debt 42,750 41,008 - - - Equity 72,052 68,796 65,455 67,893 64,902 Total investments 1,620,388 1,51
Slide 11: Summary of BlackRock Acquisition of TCP
Summary of BlackRock Acquisition of TCP Management of TCP Capital Corp. to Continue with Same Team, Greater Resources • On April 17, 2018 Tennenbaum Capital Partners, LLC, our investment advisor (the "Advisor"), entered into a definitive agreement with BlackRock, Inc. ("BlackRock"), pursuant to whic
Slide 12: Benefits for TCPC Shareholders – Enhancing Value in a Competitive Environment
Benefits for TCPC Shareholders – Enhancing Value in a Competitive Environment • Transaction couples TCP’s longstanding experience in private credit origination and underwriting with BlackRock’s credit expertise, brand and global scope. In the current environment, this transaction with BlackRock enab
Slide 13: Quarterly Operating Results
Quarterly Operating Results Three Months Ended (Unaudited; dollar amounts in thousands, except per share data) 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Investment income Interest income $ 43,825 $ 46,424 $ 42,341 $ 45,982 $ 38,780 Lease income 74 71 74 74 75 Dividend income 18 237 - 17 - O
Slide 14: Financial Highlights
Financial Highlights Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 ($ per share) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Net investment income 0.37 0.41 0.38 0.43 0.38 Net realized & unrealized gains (losses) 0.09 (0.18) (0.13) (0.08) (0.01) Net increase in net assets from operations 0
Slide 15: Quarterly Balance Sheets
Quarterly Balance Sheets 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 (in thousands, except per share data) (unaudited) (audited) (unaudited) (unaudited) (unaudited) ASSETS Investments at fair value $ 1,620,388 $ 1,514,533 $ 1,528,750 $ 1,445,948 $ 1,338,510 Cash and cash equivalents 13,737 86
Slide 16: Best-In-Class Advisory Fee Structure
Best-In-Class Advisory Fee Structure TCP Capital Corp. Typical Externally Managed BDCs(1) Base Management Fee 1.5% on gross assets (less cash and 1.5% - 2.0% on gross assets cash equivalents) Incentive Fee Hurdle 8% annualized total return on NAV, 7% annualized NII return on NAV, cumulative
Slide 17: Diversified Sources of Funding
Diversified Sources of Funding As of March 31, 2018 Source Capacity Drawn Amount Available Pricing Maturity SVCP 2022 Facility $100.0mm $57.0mm $43.0mm L + 2.25% Feb-22 2019 Convertible Notes $107.1mm (1) $107.1mm - '5.25% Dec-19 2022 Convertible Notes $137.6mm (2) $137.6mm - 4.625% Mar-22 2022 Note
Slide 18: Contact Information
Contact Information Investor Relations 2951 28th Street, Suite 1000 Santa Monica, CA 90405 (310) 566-1094 investor.relations@tcpcapital.com www.tcpcapital.com Transfer Agent EQ Shareholder Services (800) 468-9716 (from U.S.) (651) 450-4064 (from outside U.S.) www.shareowneronline.com 18