Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q1 2022 Earnings Presentation
24 slides from Blackrock Tcp Capital's earnings presentation, May 4, 2022
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation March 31, 2022
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: First Quarter 2022 Highlights
First Quarter 2022 Highlights As of March 31, 2022 ▪ Net investment income of 34 cents per share, exceeded the first quarter dividend of 30 cents per share paid on March 31 Portfolio ▪ The credit quality of TCPC’s diversified portfolio remains strong, with non-accrual loans Performance limited to ju
Slide 4: First Quarter 2022 Financial and Portfolio Overview
First Quarter 2022 Financial and Portfolio Overview As of March 31, 2022 ▪ Total portfolio fair value of $1.8 billion diversified across 119 portfolio companies Diversified Portfolio with an ▪ 88% invested in senior secured debt; 74% of the total portfolio is 1st lien Emphasis on ▪ Weighted average
Slide 5: Middle Market Lending – A Large and Growing Opportunity
Middle Market Lending – A Large and Growing Opportunity Market Size Historical Growth Strong Credit Performance ~200,000 U.S. Middle Market 6.5% annual revenue growth since Middle Market loans have historically companies representing over $10 2010, outpacing large companies experienced lower loss ra
Slide 6: Diversified Portfolio: Emphasis on Less-Cyclical Businesses
Diversified Portfolio: Emphasis on Less-Cyclical Businesses Substantially all investments subject to independent 3rd party valuation process every quarter As of March 31, 2022 Emphasis on Less-Cyclical Businesses Industry Diversification(1) ▪ Robust downside analysis performed at underwriting, with
Slide 7: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned As of March 31, 2022 Diversified Income Contribution $1.8 billion portfolio fair value 72 # of portfolio companies 88% of portfolio is senior secured debt contributing (2) 25 9.1% weighted 6 3 average effective yield on debt portfolio(1) <1% 1% - 2% 2
Slide 8: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet As of March 31, 2022 Predominantly First Lien, Diverse Capital Structure(3) Floating Rate Asset Portfolio Seniority(1) SBA First Lien 74% Debentures 8% Second Lien 14% Credit Facilities Junior 0% 16% Equity 46% Equity 12% Fixed / Floating(2) Unsecured Floating
Slide 9: Well Positioned for a Rising Rate Environment
Well Positioned for a Rising Rate Environment Rising Rate Environment SOFR ▪ Interest rates have recently started to rise after declining the last several years ▪ Given the majority of our outstanding liabilities are fixed rate, we are well positioned to benefit from an increase in interest rates An
Slide 10: Well-Covered Dividend
Well-Covered Dividend Net investment income of $0.34 per share Declared Q2 2022 dividend of $0.30 per share in Q1 2022 Payable on June 30, 2022 to holders of record Out-earned quarterly dividend of $0.30 per share paid as of June 16, 2022 on March 31, 2022 Consistent coverage of the regular dividend
Slide 11: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s 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 ▪ $164 billion(1) in AUM acros
Slide 12: Breadth and Depth of BlackRock’s Global Credit Platform
Breadth and Depth of BlackRock’s Global Credit Platform Global Credit AUM: $164 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 – First Quarter 2022
Net Asset Value (“NAV”) Bridge – First Quarter 2022 Quarter over quarter NAV decreased 0.6%, primarily driven by wider market spreads Past performance does not guarantee future returns. 14
Slide 15: Net Asset Value (“NAV”) Bridge – Last Twelve Months
Net Asset Value (“NAV”) Bridge – Last Twelve Months NAV increased 5.2% over the LTM, driven by strong credit performance across the portfolio Past performance does not guarantee future returns. 15
Slide 16: Strong Track Record
Strong Track Record Book Value per Share and Dividends Paid As of Annualized return on invested assets(1): 10.8% 3/31/2022: $30.00 Annualized cash return(2): 9.7% $28.45 Annualized total return on equity(3): 9.4% $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-1
Slide 17: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of March 31, 2022, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 206.2 $ 93.8 L + 1.75% (2) May-26 Funding Facility II 200.0 (3) 103.0 97.0 L + 2.00% (4) Aug
Slide 18: 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 19: BlackRock TCP Capital Corp - Response to COVID-19
BlackRock TCP Capital Corp - Response to COVID-19 As of March 31, 2022 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 portfol
Slide 20: Quarterly Operating Results
Quarterly Operating Results 2022 2021 Unaudited ($ in thousands, except per share amounts) Q1 Q4 Q3 Q2 Q1 Investment income Interest income $ 40,454 $ 38,506 $ 40,542 $ 39,769 $ 36,834 Dividend income 1,538 959 1,915 1,560 3,408 Other income 159 116 259 316 922 Total investment income 42,151 39,581
Slide 21: Financial Highlights
Financial Highlights 2022 2021 Unaudited Unaudited ($ per share) Q1 Q4 Q3 Q2 Q1 Net investment income 0.34 0.31 0.32 0.31 0.32 Net realized & unrealized gains (losses) (0.12) 0.26 (0.02) 0.64 0.30 Loss on extinguishment of debt - - (0.11) - - Net increase (decrease) in net assets from operations 0.2
Slide 22: Portfolio Highlights
Portfolio Highlights 2022 2021 Asset Mix of the Investment Portfolio Q1 Q4 Q3 Q2 Q1 (in thousands) Senior secured debt $ 1,584,366 $ 1,631,602 $ 1,576,117 $ 1,601,722 $ 1,548,844 Junior debt 3,162 3,156 6,350 6,228 6,157 Equity(1) 208,223 206,380 174,912 218,107 180,390 Total investments $ 1,795,751
Slide 23: Quarterly Balance Sheets
Quarterly Balance Sheets 2022 2021 (in thousands, except per share data) Unaudited Audited Unaudited ASSETS Q1 Q4 Q3 Q2 Q1 Investments at fair value $ 1,795,751 $ 1,841,138 $ 1,757,378 $ 1,826,057 $ 1,735,391 Cash and cash equivalents 43,651 19,552 36,588 17,881 14,255 Accrued interest income 21,459
Slide 24: 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 ▪ JMP Securities Corporate Headquarters ▪ Keefe, Bruyette & Woods ▪
BlackRock TCP Capital — Q1 2022 Earnings Presentation on 6ix