Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Merger or Acquisition (November 2023)
21 slides from Blackrock Tcp Capital's merger presentation, Nov 2, 2023
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor PresentationSeptember 30, 2023 FILED BY BLACKROCK TCP CAPITAL CORP. PURSUANT TO RULE 425 UNDER THE SECURITIES ACT OF 1933 AND DEEMED FILED PURSUANT TO RULE 14A-12 UNDER THE SECURITIES EXCHANGE ACT OF 1934 SUBJECT COMPANY: BLACKROCK TCP CAPITAL CORP.FILE NO. OF RE
Slide 2: Important Information and 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 the Company are available
Slide 3: No Offer or Solicitation; Additional Information
No Offer or Solicitation This Presentation is not, and under no circumstances is it to be construed as, a prospectus or an advertisement and this Presentation is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of an offer to purchase any securities in BCI
Slide 4: Third Quarter 2023 Financial Highlights and Portfolio Overview
Third Quarter 2023 Financial Highlights and Portfolio Overview Diversified Portfolio with an Emphasis on Less-Cyclical Businesses Total portfolio fair value of $1.6 billion diversified across 143 portfolio companies 89% invested in senior secured debt; 76% of the total portfolio is 1st lien Weighted
Slide 5: Middle Market Lending – An Enduring Opportunity
Middle Market Lending – An Enduring Opportunity Market Size ~200,000 U.S. Middle Market companies representing over $10 trillion in annual revenue (1) Strong Credit Performance Middle Market loans have historically experienced lower loss rates than broadly syndicated loans (2) Middle Market lending
Slide 6: Diversified Portfolio: Emphasis on Less-Cyclical Businesses
Internet Software and Services 14.7% Diversified Consumer Services 12.0% Software 9.4% Professional Services 5.5% Textiles, Apparel and Luxury Goods 2.4% Diversified Financial Services 12..0% Media 3.6% Capital Markets 3.0% Healthcare Providers and Services 2.5% IT Services 2.8% Diversified Telecomm
Slide 7: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned Weighted average annual effective yield includes amortization of deferred debt origination and end-of-term fees and accretion of original issue discount, but excludes market discount, any prepayment and make-whole fee income, and any debt investments
Slide 8: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet Predominantly First Lien, Floating Rate Asset Portfolio Diverse Capital Structure(3) Fixed / Floating(2) Floating Rate 95% Fixed Rate 5% Seniority(1) First Lien 76% Second Lien 13% Junior 0% Equity 11% As a percent of total investments at fair value as of Septe
Slide 9: Well Positioned for a Rising Rate Environment
Well Positioned for a Rising Rate Environment Annual impact on net income of changes in interest rates(1) Basis Point Change Net Investment Income Net Investment Income Per Share Up 300 basis points + $36,862,357 +$ 0.64 Up 200 basis points + $24,574,905 +$ 0.43 Up 100 basis points + $ 12,287,452 +$
Slide 10: Well-Covered Dividend
Well-Covered Dividend 2012(1,2) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 Q2 Q3 Per Share Regular dividend $1.04 $1.43 $1.44 $1.44 $1.44 $1.44 $1.44 $1.44 $1.32 $1.20 $1.22 $0.32 $0.34 $0.34 Net investment income $1.42 $1.65 $1.55 $1.64 $1.51 $1.59 $1.59 $1.61 $1.44 $1.26 $1.53 $0.44 $0.4
Slide 11: Competitive Advantages of BlackRock Global Credit
Competitive Advantages of BlackRock Global Credit Expertise $84 billion(1) in AUM across private debt classes globally 320 (1) Private Debt employees Information Edge Broad access to management teams Expertise across asset classes, investment styles, products and industries One Stop Shop Full range
Slide 12: Well Positioned to Manage Through the Cycle
Well Positioned to Manage Through the Cycle Source: BlackRock. As of September 30, 2023 Late Cycle Early Cycle Downturn 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
Slide 13: Net Asset Value (NAV) Bridge – Third Quarter 2023
Net Asset Value (“NAV”) Bridge – Third Quarter 2023 Past performance does not guarantee future returns. Quarter over quarter NAV decreased, primarily driven by net unrealized mark to market on the portfolio
Slide 14: Strong Track Record
Strong Track Record Annualized return on assets calculated as total investment income (gross of expenses) plus realized and unrealized gains and losses divided by average total investments between April 6, 2012 and September 30, 2023. Cash return calculated as total distributions from April 6, 2012
Slide 15: Diversified Sources of Funding
Diversified Sources of Funding Operating Facility has a $100.0 million accordion which allows for expansion of the facility to up to $400.0 million subject to consent from the lender and other customary conditions. As of September 30, 2023, $139.0 million of the outstanding amount subject to a SOFR
Slide 16: Investor Friendly Advisory Fee Structure
Investor Friendly Advisory Fee Structure As part of the proposed merger with BCIC, TCPC’s Advisor has proposed a management fee reduction from 1.50% to 1.25% for assets equal to or below 200% of the net asset value of TCPC. Management fee on assets that exceed 200% of the net asset value of TCPC wil
Slide 17: Quarterly Operating Results
Quarterly Operating Results 2023 2023 2022 Unaudited ($ in thousands, except per share amounts) Q3 Q2 Q1 Q4 Q3 Investment income Interest income $ 53,254 $ 53,031 $ 48,992 $ 45,139 $ 46,098 Dividend income 936 909 937 1,243 1,731 Other income 21 21 379 307 377 Total investment income 54,211 53,961 5
Slide 18: Financial Highlights
Financial Highlights 2023 2023 2022 Q3 Unaudited Unaudited Unaudited ($ per share) Q2 Q1 Q4 Q3 Net investment income 0.49 0.48 0.44 0.40 0.42 Net realized & unrealized gains (losses) (0.27) (0.20) (0.05) (1.22) 0.03 Net increase (decrease) in net assets from operations 0.22 0.28 0.39 (0.83) 0.45 Div
Slide 19: Portfolio Highlights
Portfolio Highlights 2023 2023 2022 Asset Mix of the Investment Portfolio (in thousands) Q2 Q1 Q4 Q3 Senior secured debt $ 1,413,070 $ 1,450,244 $ 1,470,731 $ 1,420,428 $ 1,458,080 Junior debt - - - - 3,508 Equity(1) 180,251 190,314 194,999 189,160 217,287 Total investments $ 1,593,321 $ 1,640,558 $
Slide 20: Quarterly Balance Sheets
Quarterly Balance Sheets 2023 2023 2022 2022 (in thousands, except per share data) Unaudited Unaudited Unaudited ASSETS Q3 Q2 Q1 Q4 Q3 Q2 Investments at fair value $ 1,593,321 $ 1,640,558 $ 1,665,730 $ 1,609,588 $ 1,678,875 $ 1,796,878 Cash and cash equivalents 91,653 123,129 98,789 82,435 105,795 4
Slide 21: Corporate Information
Corporate Information NASDAQ: TCPC JMP Securities Keefe, Bruyette & Woods Ladenburg Thalmann Oppenheimer Raymond James Wells Fargo Computershare Inc. (866) 333-6433 (from U.S.) (201) 680-6578 (from outside U.S.) wwww.computershare.com/investor 2951 28th Street Suite 1000 Santa Monica, CA 90405 Katie
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