Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q1 2021 Earnings Presentation
22 slides from Blackrock Tcp Capital's earnings presentation, May 5, 2021
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation March 31, 2021
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 2021 Highlights
First Quarter 2021 Highlights As of March 31, 2021 ▪ Quarter-over-quarter NAV increased 2.4% to $13.56 per share as of 3/31/2021, primarily reflecting net portfolio appreciation Portfolio ▪ The credit quality of TCPC’s diversified portfolio remains strong, with non-accrual loans limited Performance
Slide 4: First Quarter 2021 Financial and Portfolio Overview
First Quarter 2021 Financial and Portfolio Overview As of March 31, 2021 ▪ Total portfolio fair value of $1.7 billion diversified across 98 portfolio companies Diversified Portfolio with an ▪ Top five portfolio companies collectively represent just 17% of the total portfolio Emphasis on Less-Cyclica
Slide 5: 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, 2021 Emphasis on Less-Cyclical Businesses Industry Diversification(1) ▪ Robust downside analysis performed at underwriting, with
Slide 6: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned As of March 31, 2021 Diversified Income Contribution $1.7 billion portfolio fair value 47 89% of portfolio # of portfolio companies 32 is senior secured debt contributing (2) 9.5% weighted average effective yield on debt portfolio(1) 6 4 More than hal
Slide 7: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet As of March 31, 2021 Predominantly First Lien, Diverse Capital Structure(2) Floating Rate Asset Portfolio Seniority(1) SBA Debentures First Lien 86% 8% Credit Facilities Second Lien 14% 6% Equity 44% Junior 0% Unsecured Fixed / Floating(1) Debt 42% Floating Rat
Slide 8: Limited Exposure to Further Interest Rate Declines
Limited Exposure to Further Interest Rate Declines Decrease in LIBOR 3-Month LIBOR 3.00 ▪ 3-month LIBOR declined 261 basis points since 2.50 12/31/2018 (from 2.80% to 0.19% as of 3/31/2021) 2.00 ▪ The cumulative decline in LIBOR over this period has 1.50 resulted in a total impact to net investment
Slide 9: Well-Covered Dividend
Well-Covered Dividend Net investment income of $0.32 per share Declared Q2 2021 dividend of $0.30 per share in Q1 2021 Payable on June 30, 2021 to holders of record Out-earned quarterly dividend of $0.30 per share paid as of June 16, 2021 on March 31, 2021 Consistent coverage of the regular dividend
Slide 10: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s $9.0 trillion(1) 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 ▪ $149 billio
Slide 11: Breadth and Depth of BlackRock’s Global Credit Platform
Breadth and Depth of BlackRock’s Global Credit Platform Global Credit AUM: $149 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 12: 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 13: Net Asset Value (“NAV”) Bridge
Net Asset Value (“NAV”) Bridge Quarter over quarter NAV increased 2.4% NAV increase of 2.6% since 12/31/2019, despite significant market volatility in 2020 Past performance does not guarantee future returns. 13
Slide 14: Strong Track Record
Strong Track Record Book Value per Share and Dividends Paid $30.00 Annualized return on invested assets(1): 10.7% As of 3/31/2021: Annualized cash return(2): 9.8% $26.54 $25.00 Annualized total return on equity(3): 8.9% $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 15: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of March 31, 2021, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 104.1 $ 195.9 L + 2.00% (2) May-24 Funding Facility II 200.0 (3) - 200.0 L + 2.00% (4) Aug-2
Slide 16: 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 17: BlackRock TCP Capital Corp - Response to COVID-19
BlackRock TCP Capital Corp - Response to COVID-19 As of March 31, 2021 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 18: Quarterly Operating Results
Quarterly Operating Results 2021 2020 Unaudited ($ in thousands, except per share amounts) Q1 Q4 Q3 Q2 Q1 Investment income Interest income $ 36,834 $ 40,872 $ 39,823 $ 40,331 $ 40,632 Lease income - - - - 38 Dividend income 3,408 473 1,271 302 428 Other income 922 1,546 1,754 4,481 153 Total invest
Slide 19: Financial Highlights
Financial Highlights 2021 2020 Unaudited Unaudited ($ per share) Q1 Q4 Q3 Q2 Q1 Net investment income 0.32 0.35 0.35 0.36 0.38 Net realized & unrealized gains (losses) 0.30 0.48 0.50 0.44 (1.56) Loss on extinguishment of debt - - (0.04) - - Net increase (decrease) in net assets from operations 0.62
Slide 20: Portfolio Highlights
Portfolio Highlights 2021 2020 Asset Mix of the Investment Portfolio Q1 Q4 Q3 Q2 Q1 (in thousands) Senior secured debt $ 1,548,844 $ 1,444,804 $ 1,476,021 $ 1,473,504 $ 1,503,280 Junior debt 6,157 - 26,610 24,906 18,755 Equity(1) 180,390 184,760 126,134 109,171 103,884 Total investments $ 1,735,391
Slide 21: Quarterly Balance Sheets
Quarterly Balance Sheets 2021 2020 (in thousands, except per share data) Unaudited Audited Unaudited Unaudited Unaudited ASSETS Q1 Q4 Q3 Q2 Q1 Investments at fair value $ 1,735,391 $ 1,629,564 $ 1,628,765 $ 1,607,581 $ 1,625,919 Cash and cash equivalents 14,255 20,007 35,449 20,648 8,575 Accrued int
Slide 22: 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 ▪
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