Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — TCP Capital — Q3 2015 Earnings Presentation
16 slides from Blackrock Tcp Capital's earnings presentation, Nov 5, 2015
Slide 1: TCP Capital Corp. Investor Presentation
TCP Capital Corp. Investor Presentation Quarter Ended September 30, 2015
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.
TCP Capital Corp. Business development company (BDC) Trades on NASDAQ: “TCPC” TCPC Expects to distribute most of its earnings as dividends(1) 9.9% current dividend yield(2) Investment We seek to generate high total returns through current income and Objective capital appreciation, with an em
Slide 4: Dividend Stability
Dividend Stability Net investment income(1) of $0.40 per share, outearning dividend by $0.04 Quarterly dividend of $0.36 per share paid on September 30, 2015 Declared Q4 2015 regular quarterly dividend of $0.36 per share Payable on December 31, 2015 to holders of record as of December 17, 20
Slide 5: Strong Track Record of Positive Performance
Strong Track Record of Positive Performance Book Value per Share and Dividends Paid $21.00 $20.34 $19.98 $20.00 $19.55 $19.18 $19.17 $18.70 $19.00 $18.30 $17.80 $18.00 $17.27 $5.24 $4.88 $16.79 $3.75 $4.52 $17.00 $3.39 $4.16 $16.40 $2.98 $2.62 $15.80 $2.21 $16.00 $15.48 $1.85 $1.49 $15.04 $1.09 $15.
Slide 6: Q3 Capital Activity
Q3 Capital Activity TCPC Funding Facility commitment increased to $350 million; maturity date extended to March 6, 2020 $116 million SVCP credit facility extend to July 31, 2018; interest rate reduced to L+175 through July 31, 2016(1) $100.5 million Preferred exchanged for $100.5 term debt wit
Slide 7: Portfolio Highlights as of September 30, 2015
Portfolio Highlights as of September 30, 2015 Investment by Industry Electrical Equipment Mfg 1.0% $1.3 billion portfolio fair value Other Telecom 1.0% Restaurants 1.2% Accounting, Tax & Payroll Services 1.2% Other 5.3% Deployed $121 million in 11 Lessors of Nonfinancial Licenses 1.5% Software P
Slide 8: Portfolio Growth Since IPO
Portfolio Growth Since IPO $1,400 $1.3 billion $1,200 $1,000 Dollars in millions $800 $600 $400 $200 $ Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Equity Fixed rate debt Floating rate debt 8
Slide 9: Conservatively Positioned Portfolio
Conservatively Positioned Portfolio As of September 30, 2015 Portfolio by Strategy Portfolio by Asset Type Debt Portfolio by Interest Type Equity 3% Mezzanine / Junior Equity 3% Debt <1% Fixed Rate 22% Floating Rate 78% Senior Secured Leveraged Loans 97% Debt 97% Positive annual impact on net inco
Slide 10: Financial Highlights
Financial Highlights ($ per share) Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Net investment income before taxes (1) $ 0.50 $ 0.55 $ 0.46 $ 0.50 $ 0.47 Excise taxes - - - (0.02) - Incentive compensation on NII (0.10) (0.11) (0.09) (0.10) (0.09) Net investment income, after incentive(1) 0.40 0.44 0.37 0
Slide 11: Portfolio Highlights
Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Senior secured debt $ 1,227,621 $ 1,170,828 $ 1,168,613 $ 1,113,537 $ 1,041,130 Mezzanine/subordinated debt 57 57 57 56 15 Equity 41,483 41,090 34,675 32,943 33,652 Total investments 1,2
Slide 12: Quarterly Balance Sheets
Quarterly Balance Sheets 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 (in thousands, except per share data) (unaudited) (unaudited) (unaudited) (audited) (unaudited) ASSETS Investments at fair value $ 1,269,161 $ 1,211,975 $ 1,203,345 $ 1,146,536 $ 1,074,797 Cash and cash equivalents 34,583 36
Slide 13: Quarterly Operating Results
Quarterly Operating Results For the Three Months Ended (Unaudited; dollar amounts in thousands, except per share data) 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 Investment Income Interest income $ 33,813 $ 37,485 $ 31,556 $ 30,623 $ 26,643 Lease income 355 331 292 325 337 Other income 1,331
Slide 14: Best-In-Class Advisory Fee Structure
Best-In-Class Advisory Fee Structure Select Externally Managed BDCs TCP Capital Corp. 1.5% - 2.0% on gross assets 1.5% on gross assets (less cash and cash equivalents) Base Management Fee 1.75% - 2.00% quarterly return on NAV 2.00% quarterly return on NAV Incentive Fee Hurdle (on Ordinary In
Slide 15: Diversified Sources of Funding
Diversified Sources of Funding As of September 30, 2015 Source Capacity Drawn Amount Pricing Maturity Current leverage: TCPC Funding I Credit Facility $350mm $221mm L + 2.50%(1) Mar-20 SVCP Credit Facility $116mm $109mm L + 1.75% Jul-18 Term Loan $101mm $101mm L + 1.75% Jul-18 SBA Leverage P
Slide 16: 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 Wells Fargo Shareholder Services (800) 468-9716 (from U.S.) (651) 450-4064 (from outside U.S.) www.shareowneronline.com 16