Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — TCP Capital — Q4 2015 Earnings Presentation
16 slides from Blackrock Tcp Capital's earnings presentation, Feb 29, 2016
Slide 1: TCP Capital Corp. Investor Presentation Quarter Ended December 31, 2015
TCP Capital Corp. Investor Presentation Quarter Ended December 31, 2015 © 2016 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.
TCP Capital Corp. Business development company (BDC) Trades on NASDAQ: “TCPC” TCPC Expects to distribute most of its earnings as dividends(1) 10.7% current dividend yield(2) Investment We seek to generate high total returns through current income and Objective capital appreciation, with an e
Slide 4: 2015 Highlights and Recent Achievements
2015 Highlights and Recent Achievements Out-earned our dividends by $0.19 per share Expanded and extended existing credit facilities: TCPC Funding Facility commitment increased to $350 million; accordion feature expanded to $400 million TCPC Funding Facility maturity date extended to March 6
Slide 5: Dividend Stability
Dividend Stability Net investment income(1) of $0.43 per share, out-earning dividend by $0.07 Quarterly dividend of $0.36 per share paid on December 31, 2015 Declared Q1 2016 regular quarterly dividend of $0.36 per share Payable on March 31, 2016 to holders of record as of March 17, 2016 201
Slide 6: Strong Track Record of Positive Performance
Strong Track Record of Positive Performance Book Value per Share and Dividends Paid $21.00 $20.34 $20.38 $19.88 $20.00 $19.55 $19.18 $19.17 $18.70 $19.00 $18.30 $17.80 $18.00 $5.24 $17.27 $4.88 $5.60 $16.79 $3.75 $4.52 $17.00 $3.39 $4.16 $2.98 $16.40 $2.62 $15.80 $2.21 $16.00 $1.85 $15.48 $1.49 $15.
Slide 7: Portfolio Highlights as of December 31, 2015
Portfolio Highlights as of December 31, 2015 $1.2 billion portfolio fair value 96% of portfolio is senior secured debt Investment by Industry 10.9% weighted average effective yield on 80% of debt portfolio is floating rate debt portfolio(1) (1) Weighted average annual effective yield include
Slide 8: Portfolio Growth Since IPO
Portfolio Growth Since IPO Portfolio Growth Since IPO $1,400 $1.2 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 Q4-15 Equity Fixed rate debt Floating rate debt 8
Slide 9: Conservatively Positioned Portfolio
Conservatively Positioned Portfolio As of December 31, 2015 Portfolio by Asset Type Debt Portfolio by Interest Type Leverage by Interest Type Mezzanine / Equity 4% Junior Debt <1% Fixed Rate 20% Fixed rate 30% Floating Rate 80% Floating rate 70% Senior Secured Debt 96% Positive annual impact on net
Slide 10: Financial Highlights
Financial Highlights ($ per share) Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Net investment income before taxes (1) $ 0.55 $ 0.50 $ 0.55 $ 0.46 $ 0.50 Excise taxes (0.02) - - - (0.02) Incentive compensation on NII (0.11) (0.10) (0.11) (0.09) (0.10) Net investment income, after incentive(1) 0.43 0.40 0
Slide 11: Portfolio Highlights
Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Senior secured debt $ 1,129,571 $ 1,227,621 $ 1,170,828 $ 1,168,613 $ 1,113,537 Mezzanine/subordinated debt 965 57 57 57 56 Equity 52,384 41,483 41,090 34,675 32,943 Total investments 1,
Slide 12: Quarterly Balance Sheets
Quarterly Balance Sheets 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 (in thousands, except per share data) (audited) (unaudited) (unaudited) (unaudited) (audited) ASSETS Investments at fair value $ 1,182,920 $ 1,269,161 $ 1,211,975 $ 1,203,345 $ 1,146,536 Cash and cash equivalents 35,629 34,
Slide 13: Quarterly Operating Results
Quarterly Operating Results Three Months Ended (Unaudited; dollar amounts in thousands, except per share data) 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 Investment income Interest income $ 39,159 $ 33,813 $ 37,485 $ 31,556 $ 30,623 Lease income 375 355 331 292 325 Other income 82 1,331 1,1
Slide 14: Best-In-Class Advisory Fee Structure
Best-In-Class Advisory Fee Structure Typical Externally Managed BDCs(1) TCP Capital Corp. Base Management Fee 1.5% - 2.0% on gross assets 1.5% on gross assets (less cash and cash equivalents) Incentive Fee Hurdle 2.00% quarterly return on NAV 2.00% quarterly return on NAV Capital Gains: 20
Slide 15: Diversified Sources of Funding
Diversified Sources of Funding As of December 31, 2015 Source Capacity Drawn Amount Pricing Maturity Current leverage: ■ SVCP Facility ■ Revolver $116.0mm $24.0mm L + 1.75% (1) Jul-18 ■ Term Loan $100.5mm $100.5mm L + 1.75% (1) Jul-18 ■ Convertible Senior Unsecured Notes $108.0mm $106.1mm '5.25% Dec
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