Blackrock Tcp Capital Corp. · NASDAQ:TCPC

Blackrock Tcp Capital — TCP Capital — Wells Fargo Specialty Finance Conference 2014

24 slides from Blackrock Tcp Capital's conference presentation, May 20, 2014

  1. Slide 1: Wells Fargo Specialty Finance Conference

    Wells Fargo Specialty Finance Conference May 20, 2014

  2. 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

  3. Slide 3: Presenters

    Presenters Chairman & CEO, TCP Capital Corp. Howard Levkowitz Managing Partner & Co-Founder, Tennenbaum Capital Partners President & COO, TCP Capital Corp. Rajneesh Vig Managing Partner, Tennenbaum Capital Partners 3

  4. Slide 4: Overview

    Overview

  5. Slide 5: TCP Capital Overview

    TCP Capital Overview  TCP Capital Corp. (“TCPC”) is a leading specialty finance company focused on senior secured lending primarily to established middle Leading Non-Bank market companies Direct Lender  Regulated as a business development company (“BDC”)  Diversified $816 million portfolio value

  6. Slide 6: Company Highlights

    Company Highlights  Over 75 employees, including 35 investment professionals Competitive  19 industry groups with experience investing across asset classes Advantage  Scaled, national platform providing unique financing solutions for 18 years  Deep sector expertise, senior professionals average

  7. Slide 7: Best-In-Class Advisory Fee Structure

    Best-In-Class Advisory Fee Structure Select 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)  1.75% - 2.00% quarterly return on  2.00% quarterly return on NAV Incentive Fee Hurdle NAV (on Ordinary

  8. Slide 8: Substantial Net Investment Income to Support Cash Dividends

    Substantial Net Investment Income to Support Cash Dividends  As of March 31, 2014, tax-basis undistributed ordinary income of approximately $28.1 million $0.70 $0.36 $0.64 $0.60 $0.59 $0.50 $0.50 $0.47 $0.47 $0.48 $0.43 $0.40 $0.40 $0.40 $0.41 $0.41(1) $0.40 $0.05 $0.05 $0.05 $0.36 $0.36 $0.36 $0.0

  9. Slide 9: TCPC's Public Market Activity

    TCPC’s Public Market Activity $16.00/share(1) $18.00 1.06x of NAV $17.50 $15.76/share(1) $15.63/share(1) 1.05x of NAV $17.00 1.03x of NAV TCPC Price Per Share $16.50 $16.00 $14.75/share(1) $15.50 $15.00 $14.50 $14.00 $13.50 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13

  10. Slide 10: Investment Strategy & Focus

    Investment Strategy & Focus  Primarily current cash income with additional return from origination and structuring fees Return Focus  Potential capital appreciation  Potential upside through equity participation  Directly originated and newly originated leveraged loans and, to a lesser extent, s

  11. Slide 11: Investment Process

    Investment Process  5 voting members  Investment Team  Interest income and capital gains  Majority vote required for purchase  Portfolio boards and sponsors  Opportunistic sales in secondary or sale of investments marketplace  Third-party relationships  Thorough review of due diligence,  Re

  12. Slide 12: Diversified Sources of Funding

    Diversified Sources of Funding Pricing Maturity Facility Range Date  $116m Operating Company Credit Facility1 L + 0.44%2 July 2016  $150m TCPC Funding I Credit Facility3 L + 2.50%4 May 2017 TCPC  $134m Preferred Interests1 L + 0.85% Jul 2016  $150m TCPC SBIC, LP Credit Facility5 TBD 10 years (1)

  13. Slide 13: Global Financial Crisis Created Opportunity in U.S. Middle-Market

    Global Financial Crisis Created Opportunity in U.S. Middle-Market Cumulative Maturities of Middle Market Loans Limited Supply to Middle Market Companies Healthy Demand for Middle Market Financing  Reduced lending by commercial banks; more  Seeking lenders with access to permanent costly to hold mi

  14. Slide 14: Case Studies: Aircraft Financing

    Case Studies* Aircraft Financing * Case studies provide examples of investments made by TCPC and its investment process and approach. Not all investments following this process and approach have been profitable and there can be no guarantee that the investments profiled will be profitable. Additiona

  15. Slide 15: Portfolio and Financial Review

    Portfolio and Financial Review

  16. Slide 16: Summary Statistics

    Summary Statistics As of March 31, 2014 Shares Oustanding 36.2 million Assets $857.4 million Market Cap $599.1 million Dividend Yield 8.9% Net Investment Income $13.9 million NII per share $0.39 Net Asset Value per share $15.32 Net Debt/Equity: 0.48 Number of Portfolio Companies 70 Q2 Regular Divide

  17. Slide 17: Highly Diversified Portfolio

    Highly Diversified Portfolio As of March 31, 2014 Investments by Industry Data Processing & Hosting Services 1.0% Computer Equipment Mfg 1.1% Beverage Mfg 1.0%  $816 million portfolio fair value Merchant Wholesalers 1.1% Accounting, Tax & Payroll Services 1.0% Specialty Hospitals 1.2%  70 portfoli

  18. Slide 18: Conservatively Positioned Portfolio

    Conservatively Positioned Portfolio As of March 31, 2014 Portfolio by Strategy Portfolio by Asset Type Debt Portfolio by Interest Type Equity Mezzanine / Junior Debt<1% 4% Senior Unsecured Equity 4% Debt 1% Fixed Rate 27% Floating Rate 73% Leveraged Loans Senior Secured Debt 96% 95%  73% of debt po

  19. Slide 19: Strong Track Record of Positive Performance

    Strong Track Record of Positive Performance Book Value per Share and Dividends Paid $19.00 $18.50 $18.30 $18.00 $17.80 $17.50 $17.27 $17.00 $16.79 $2.98 $16.40 $16.50 $2.62 $2.21 $16.00 $15.80 $1.85 $15.48 $1.49 $15.50 $1.09 $15.04 $0.69 $15.00 $0.34 $15.18 $15.32 $14.50 $14.91 $14.94 $15.06 $14.76

  20. Slide 20: Summary

    Summary

  21. Slide 21: Key Financial Highlights

    Key Financial Highlights ($ per share) Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 (1) Net investment income before taxes 0.48 $ 0.50 $ 0.50 $ 0.47 $ 0.64 Excise taxes - (0.03) - - - Net investment income(1) 0.48 0.47 0.50 0.47 0.64 Net realized & unrealized gains (losses) 0.14 0.10 0.11 0.03 0.11 Incen

  22. Slide 22: Portfolio Highlights

    Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Senior secured debt $ 773,780 $ 708,726 $ 646,708 $ 515,778 $ 453,895 Senior unsecured debt 7,560 7,632 7,629 7,591 7,553 Mezzanine/subordinated debt 1,402 10,157 11,090 10,859 12,151 Eq

  23. Slide 23: Key Highlights

    Key Highlights  Founded in 1996, inclusive of its precessor entity; Registered Investment Advisor since 2001 Established Direct Origination Platform  More $12.0 billion invested in over 300 companies; approximately $5.4 billion invested in directly originated and originally issued leveraged loans

  24. Slide 24: Corporate Information

    Corporate Information Research Coverage Securities Listing  Wells Fargo NASDAQ: TCPC  Crowell Weedon  Deutsche Bank  JMP Securities  Keefe, Bruyette & Woods  National Securities Corporate Headquarters  Oppenheimer 2951 28th Street  Raymond James Suite 1000  Wunderlich Securities Santa Monic

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