Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q2 2019 Earnings Presentation
19 slides from Blackrock Tcp Capital's earnings presentation, Aug 8, 2019
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation June 30, 2019
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 June 30, 2019 Who we are What we do How we do it $1.7 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 secur
Slide 4: Second Quarter 2019 Financial and Portfolio Highlights
Second Quarter 2019 Financial and Portfolio Highlights As of June 30, 2019 Dividend Coverage ▪ Net investment income of $0.41; dividend of $0.36 per share Disciplined ▪ Deployment of $232 million gross, $115 million net of dispositions Deployment ▪ Total portfolio companies reached a record of 104 c
Slide 5: Well-Covered and Consistent Dividend
Well-Covered and Consistent Dividend Net investment income of $0.41 per share Declared Q3 2019 dividend of $0.36 in Q2 2019 per share Out-earned quarterly dividend of $0.36 per share paid Payable on September 30, 2019 to holders of record on June 28, 2019 as of September 16, 2019 Dividend covered in
Slide 6: Conservatively Positioned and Diversified Portfolio
Conservatively Positioned and Diversified Portfolio Majority of our portfolio 11.0% weighted $1.7 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 9% Fixed Rate 41% Fixed Rate Floating Rate Floating Rate 59% 91% Positive annual impact on net income of base rate increases in interest rates(1) Basis Point Change Net Investment Inco
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) 6/30/2019: $26.00 $24.28 $24.00 $22.00 $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15 Q1-16 Q3-16
Slide 9: TCPC Outperformance
TCPC Outperformance Outperformed the Wells Fargo BDC Index by 33% since our IPO(1) BlackRock TCP Capital Corp. Wells Fargo Business Development Company Index As of 6/30/2019 200% TCPC: 92.4% 190% 180% 170% WFBDC: 69.3 % 160% 150% 140% 130% 120% 110% 100% 90% (1) Assumes a fixed investment on April 6
Slide 10: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s $6.8 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 ▪ $104 bil
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: $104 billion(1) Leveraged Finance Multi-Strategy Credit Private Credit ▪ High Yield ▪ Pan-Credit Solutions ▪ Direct Lending ▪ Bank Loans ▪ Hedge Fund Strategies ▪ Opportunistic Credit ▪ CLOs ▪ Specialty Finance BlackRock
Slide 12: TCPC's Risk-Mitigated Platform Well-Positioned in Today's Environment
TCPC’s Risk-Mitigated Platform Well-Positioned in Today’s Environment Middle-Market Environment Opportunities Challenges ▪ ~200,000(1) U.S. middle-market businesses, ▪ Uptick in new market participants is intensifying representing one-third of private sector GDP, many competition and pressuring yiel
Slide 13: Quarterly Operating Results
Quarterly Operating Results 2019 2018 Unaudited ($ in thousands, except per share amounts) Q2 Q1 Q4 Q3 Q2 Investment income Interest income $ 47,631 $ 46,977 $ 47,657 $ 49,348 $ 48,318 Lease income 74 74 74 74 74 Dividend income 392 480 646 59 29 Other income 78 9 6 - - Total investment income 48,17
Slide 14: Financial Highlights
Financial Highlights 2019 2018 Unaudited Unaudited ($ per share) Q2 Q1 Q4 Q3 Q2 Net investment income 0.41 0.40 0.40 0.42 0.41 Net realized & unrealized gains (losses) (0.59) 0.01 (0.42) (0.16) (0.34) Net increase in net assets from operations (0.18) 0.41 (0.02) 0.26 0.07 Dividend paid (0.36) (0.36)
Slide 15: Portfolio Highlights
Portfolio Highlights 2019 2018 Asset Mix of the Investment Portfolio Q2 Q1 Q4 Q3 Q2 (in thousands) Senior secured debt $1,558,763 $1,476,326 $1,471,583 $ 1,433,044 $ 1,490,181 Junior debt 50,331 43,722 43,526 43,277 43,009 Equity 80,088 84,780 82,177 83,792 80,641 Total investments $ 1,689,182 $1,60
Slide 16: Quarterly Balance Sheets
Quarterly Balance Sheets 2019 2018 (in thousands, except per share data) Unaudited Unaudited Audited Unaudited Unaudited ASSETS Q2 Q1 Q4 Q3 Q2 Investments at fair value $ 1,689,182 $ 1,604,828 $ 1,597,286 $ 1,560,113 $ 1,613,831 Cash and cash equivalents 21,858 26,752 27,920 90,283 27,592 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 June 30, 2019, $ in millions Source Capacity Drawn Amount Available Pricing Maturity SVCP Facility $ 220.0 (1) $ 136.0 $ 84.0 L + 2.00% May-23 2019 Convertible Notes 107.7 (2) 107.7 - 5.25% Dec-19 20
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
BlackRock TCP Capital — Q2 2019 Earnings Presentation on 6ix