Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q4 2020 Earnings Presentation
22 slides from Blackrock Tcp Capital's earnings presentation, Feb 25, 2021
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation December 31, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements Prospective investors considering an investment in BlackRock TCP Capital Corp. (“we”, “us”, “our”, “TCPC” or the “Company”) should consider the investment objectives, risks and expenses of the Company carefully before investing. This information and other information about
Slide 3: Fourth Quarter and Full Year 2020 Highlights
Fourth Quarter and Full Year 2020 Highlights As of December 31, 2020 ▪ 4Q 2020 NAV increased 4.2%; NAV per share increased year over year Portfolio Performance ▪ Credit quality of TCPC’s diversified portfolio remains strong, with non-accrual loans limited to just 0.5% of total investments at fair va
Slide 4: BlackRock TCP Capital Corp - Response to COVID-19
BlackRock TCP Capital Corp - Response to COVID-19 As of December 31, 2020 Our Team Our Portfolio Our Firm Business continuity procedures Leveraging our team’s more than 20 Thorough and ongoing analysis of continue to be fully operational – years’ experience investing across every company in our port
Slide 5: Fourth Quarter 2020 Financial and Portfolio Overview
Fourth Quarter 2020 Financial and Portfolio Overview As of December 31, 2020 ▪ Total portfolio fair value of $1.6 billion diversified across 96 portfolio companies Diversified Portfolio with an ▪ Top five portfolio companies collectively represent just 18% of the total portfolio Emphasis on Non-Cycl
Slide 6: Diversified Portfolio: Emphasis on Non-Cyclical Businesses
Diversified Portfolio: Emphasis on Non-Cyclical Businesses Substantially all investments subject to independent 3rd party valuation process every quarter As of December 31, 2020 Emphasis on Non-Cyclical Businesses Industry Diversification(1) ▪ Robust downside analysis performed at underwriting, with
Slide 7: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned As of December 31, 2020 Diversified Income Contribution $1.6 billion portfolio fair value 45 35 89% of portfolio # of portfolio companies is senior secured debt contributing (2) 9.6% weighted average effective yield on debt portfolio(1) 3 4 More than
Slide 8: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet As of December 31, 2020 Predominantly First Lien, Diverse Capital Structure(2),(3) Floating Rate Asset Portfolio Seniority(1) SBA Debentures First Lien 88% 8% Credit Second Lien 12% Facilities Equity 47% 10% Junior 0% Unsecured Fixed / Floating(1) Debt 35% Floa
Slide 9: Limited Exposure to Further Interest Rate Declines
Limited Exposure to Further Interest Rate Declines Decrease in LIBOR 3-Month LIBOR 3.00 ▪ 3-month LIBOR declined 256 basis points since 2.50 12/31/2018 (from 2.80% to 0.24% as of 12/31/2020) 2.00 ▪ The cumulative decline in LIBOR over this period has 1.50 resulted in a total impact to net investment
Slide 10: Well-Covered and Consistent Dividend
Well-Covered and Consistent Dividend Net investment income of $0.35 per share Declared Q1 2021 dividend of $0.30 per share in Q4 2020 Payable on March 31, 2021 to holders of record Out-earned quarterly dividend of $0.30 per share paid as of March 17, 2021 on December 31, 2020 Consistent coverage of
Slide 11: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s $8.68 trillion(1) investment platform creates substantial scale and scope that provides insight, access, and expertise in sourcing, underwriting and managing differentiated investments Global Credit Expertise Information Edge One Stop Shop ▪ $142 billi
Slide 12: Breadth and Depth of BlackRock's Global Credit Platform
Breadth and Depth of BlackRock’s Global Credit Platform Global Credit AUM: $142 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 Inve
Slide 13: Well Positioned to Manage Through the Cycle
Well Positioned to Manage Through the Cycle Late Cycle Downturn Early Cycle Mid Cycle Tight Financing Easy Financing Excess Capacity Excess Demand Strategy attributes are well-positioned to withstand a downturn ✓ Senior secured, top of the capital structure ✓ Significant cushion below investment (ge
Slide 14: Net Asset Value ("NAV") Bridge
Net Asset Value (“NAV”) Bridge 4Q 2020 increase in NAV of 4.2% Year over year NAV increased, despite significant market volatility in 2020 Past performance does not guarantee future returns. 14
Slide 15: Strong Track Record
Strong Track Record Book Value per Share and Dividends Paid $30.00 Annualized return on invested assets(1): 10.5% As of 12/31/2020: Annualized cash return(2): 9.8% $25.92 $25.00 Annualized total return on equity(3): 8.6% $20.00 $15.00 $10.00 $5.00 $0.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-
Slide 16: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of December 31, 2020, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 120.4 $ 179.5 L + 2.00% (2) May-24 (2) Funding Facility II 200.0 (3) 36.0 164.0 L + 2.00%
Slide 17: Investor Friendly Advisory Fee Structure
Investor Friendly Advisory Fee Structure BlackRock TCP Capital Corp. Average Externally Managed BDC(1) ◼ 1.5% up to 1.0x debt to equity; 1.0% above ◼ 1.50% - 1.75% on gross assets (up to 1.0x Base 1.0x debt to equity. Based on gross assets debt to equity; 1.0% above 1.0x debt to (less cash and cash
Slide 18: Quarterly Operating Results
Quarterly Operating Results 2020 2019 Unaudited ($ in thousands, except per share amounts) Q4 Q3 Q2 Q1 Q4 Investment income Interest income $ 40,872 $ 39,823 $ 40,331 $ 40,632 $ 47,123 Lease income - - - 38 74 Dividend income 473 1,271 302 428 605 Other income 1,546 1,754 4,481 153 8 Total investmen
Slide 19: Financial Highlights
Financial Highlights 2020 2019 Unaudited Unaudited ($ per share) Q4 Q3 Q2 Q1 Q4 Net investment income 0.35 0.35 0.36 0.38 0.38 Net realized & unrealized gains (losses) 0.48 0.50 0.44 (1.56) (0.40) Loss on extinguishment of debt - (0.04) - - - Net increase (decrease) in net assets from operations 0.8
Slide 20: Portfolio Highlights
Portfolio Highlights 2020 2019 Asset Mix of the Investment Portfolio Q4 Q3 Q2 Q1 Q4 (in thousands) Senior secured debt $ 1,444,804 $ 1,476,021 $ 1,473,504 $ 1,503,280 $ 1,513,909 Junior debt - 26,610 24,906 18,755 21,285 Equity(1) 184,760 126,134 109,171 103,884 114,313 Total investments $ 1,629,564
Slide 21: Quarterly Balance Sheets
Quarterly Balance Sheets 2020 2019 (in thousands, except per share data) Audited Unaudited Unaudited Unaudited Audited ASSETS Q4 Q3 Q2 Q1 Q4 Investments at fair value $ 1,629,564 $ 1,628,765 $ 1,607,581 $ 1,625,919 $ 1,649,507 Cash and cash equivalents 20,007 35,449 20,648 8,575 44,849 Accrued inter
Slide 22: Corporate Information
Corporate Information Securities Listing Transfer Agent NASDAQ: TCPC Computershare Inc. (866) 333-6433 (from U.S.) Research Coverage (201) 680-6578 (from outside U.S.) wwww.computershare.com/investor ▪ Bank of America Merrill Lynch ▪ Keefe, Bruyette & Woods Corporate Headquarters ▪ Ladenburg Thalman
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