Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — KCAP Financial — Investor Presentation (2013)
17 slides from Bcp Investment's investor presentation, 2013
Slide 1: Investor Presentation First Quarter 2013
Investor Presentation First Quarter 2013
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT Forward Looking Information This presentation includes forward-looking statements. The matters discussed in this presentation, as well as in future oral and written statements by management of KCAP Financial, Inc., that are forward-looking statements are based on current manage
Slide 3: Investment Highlights
Investment Highlights Internally managed structure Innovative Strategy and Platform 100% ownership of CLO fund Asset Manager Affiliates (Katonah Debt Advisors and Trimaran Advisors) Highly Experienced Seasoned management team with average industry tenure of 25+ years Management Team Managed
Slide 4: Overview – Business Model
Overview – Business Model Internally managed BDC with a diversified portfolio of corporate credit investments and an attractive asset management business KCAP Financial, Inc. NASDAQ: “KCAP” Principal Investing Managed Funds Corporate Loan Investments $151 million in debt securities Asset Managers
Slide 5: Quarterly Dividends
QUARTERLY DIVIDENDS 2013 Dividend Yield First quarter $ 0.28 11% $ 0.28 2012 Dividend Yield Fourth quarter $ 0.28 12% Third quarter $ 0.24 10% Second quarter $ 0.24 13% First quarter $ 0.18 10% $ 0.94 2011 Dividend Yield Fourth quarter $ 0.18 11% Third quarter $ 0.18 12% Second quarter $ 0.17 9% Fir
Slide 6: Portfolio Highlights
PORTFOLIO HIGHLIGHTS ASSET MIX 1Q13 4Q12 3Q12 2Q12 1Q12 First Lien 21% 20% 22% 23% 24% Investments at Fair Value (in thousands) Second Lien / Mezz 20% 15% 23% 24% 22% $350,000 CLO 21% 26% 22% 21% 21% $300,000 $250,000 Asset Manager Affiliates 22% 24% 24% 24% 25% $200,000 Equity 2% 3% 2% 3% 2% $150,0
Slide 7: Investment Portfolio
Investment Portfolio A balanced investment risk / return profile 1Q13 Portfolio Statistics 2nd Lien / KDA/Asset Mezz Manager 23% 25% Total Portfolio: Equity Portfolio Fair value $318 million 3% Portfolio (excluding AMA & CLO Securities): Fair value $139 million CLO Mezz Number of issuers 54 First Li
Slide 8: Portfolio Highlights – Industry Diversification
PORTFOLIO HIGHLIGHTS PORTFOLIO DEBT SECURITIES - INDUSTRY DIVERSIFICATION Beverage, Food and Tobacco Oil and Gas 12% Home and Office Furnishings, Housewares, and Durable 25% Consumer Products 7% Machinery (Non-Agriculture, Non-Construction, Non- Electronic) Insurance 7% Electronics Retail Stores 8%
Slide 9: Strong Credit Quality
Strong Credit Quality Experienced management team has led to strong credit performance in a challenging environment As of March 31, 2013, five portfolio companies were on non-accrual status (representing less than 1% of total investments at fair value) Despite mark-to-market unrealized losses, p
Slide 10: CLO Fund Portfolio
CLO Fund Portfolio Understanding risks and return CLO Fund Structure CLO Fund Statistics Remaining financing term 8.7 years Fair value $78 million Current portfolio yield L + 380 bps Par $106 million W/A cost of debt capital L + 74 bps Cost $90 million Net interest spread 306 bps Diversity: Fees and
Slide 11: CLO Equity / Asset Manager Synergy
CLO Equity / Asset Manager Synergy KCAP Equity Investment $10 million Rate 14% Annual $1.4 million Asset Manager Affiliate AUM $400 million Net Fee 40 BP Annual $1.6 million Combined Return Return 30% Investment $10 million Annual $3 million Data as of, or for the three months ended 3/31/13 unless o
Slide 12: Leverage
Leverage Low Leverage and Room for Growth Relative to Peers $60 million is unsecured, convertible notes at 8.75% with a 2016 maturity $41.4 million unsecured, senior notes at 7.375% with a 2019 maturity Debt–to–equity of 0.38x based on net asset value of $266 million for the quarter ended Marc
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS 1Q13 4Q12 3Q12 2Q12 1Q12 4Q11 Earnings per share¹ $ 0.39 $ 0.44 $ 0.39 $ 0.36 $ 0.30 $ 0.31 Net investment income per share¹ $ 0.24 $ 0.28 $ 0.27 $ 0.23 $ 0.15 $ 0.18 Net realized and unrealized gain (loss) per share¹ $ 0.01 $ 0.28 $ 0.23 $ (0.16) $ (0.13) $ (0.24) Net asset val
Slide 14: Financial Highlights
Financial Highlights NET ASSET VALUE INVESTMENT PORTFOLIO March 31, 2013 Fair Value NAV per Share March 31, 2013 Cost Fair Value Investments at fair value: Debt securities $ 151,549,821 $ 4.75 Time Deposit $ - $ - Time Deposit & Money Market Accounts 38,887,925 1.22 Money Market Account 38,887,925 3
Slide 15: Subsequent Events
SUBSEQUENT EVENTS • On April 4, 2013 $8,992,000 of the Company’s 8.75% Convertible Senior Notes were converted at a price basis per share of $8.159 into 1,102,093 shares of KCAP common stock. The effect on the March 31, 2013 earnings per share would have been a decrease of $0.01 per share. 15
Slide 16: Summary of KCAP Attributes
Summary of KCAP Attributes Dynamic business model generates sustainable dividends Sustainable, recurring revenues not dependent on capital gains Recurring interest income from secured loan and CLO portfolios Stable asset management fee income from Asset Manager Affiliates New investments in
Slide 17: Q&A
Q&A