Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — KCAP Financial — Q3 2014 Earnings Presentation
13 slides from Bcp Investment's earnings presentation, 2014
Slide 1: Third Quarter 2014 Earnings Presentation
Third Quarter 2014 Earnings Presentation
Slide 2: Forward Looking Information
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 management expectations that
Slide 3: Q3 2014 Highlights
Q3 2014 HIGHLIGHTS Net Interest Income $.25 per basic share for Q3’14 compared to $.24 for Q2’14 and $.24 for Q1’14 Direct Lending Business now ~40% of total company Investment Revenue vs. ~40% in Q2 and ~30% in Q3’13 Direct Lending Weighted average yield on debt securities portfolio increased
Slide 4: Originations and Repayments
ORIGINATIONS AND REPAYMENTS Invested $22.3 million in new originations at expected return of ~11.0% KCAP Senior Funding: Invested $15.0 million in new senior loans with an average yield of 5.9% Weighted average yield on our debt securities portfolio was 7.8% at September 30, 2014, up from 7.
Slide 5: NII Contribution
NII CONTRIBUTION Continued Momentum in Our Direct Lending Business In millions $14.0 $12.0 Other $10.0 Dividends from Asset $8.0 Manager Affiliates Dividends from CLO $6.0 Fund Securities $4.0 Interest Income from Debt Securities $2.0 $‐ 3Q13 4Q13 1Q14 2Q14 3Q14 5
Slide 6: Asset Manager Affiliates
ASSET MANAGER AFFILIATES Wholly owned asset management business $3.3 billion in AUM Closed a $465 million CLO fund in September - Catamaran CLO 2014-2 Ltd. All CLO’s managed by KDA and Trimaran are current on equity distributions and management fees. Five of the funds are now paying incentiv
Slide 7: Capital Transactions
CAPITAL TRANSACTIONS Issued 3mm shares of common stock in a public offering in October raising $23.9 million in net proceeds Repurchased ~ $10.4 million of KCAP Convertible Notes at a price of $114.875 $38.6 million remains outstanding with a five year term, maturing March 2016 Data as of, or
Slide 8: KCAP Financial, Inc. Q&A
KCAP FINANCIAL, INC. Q&A
Slide 9: Appendix – Supplemental Information
Appendix – Supplemental Information
Slide 10: Portfolio Highlights
PORTFOLIO HIGHLIGHTS PORTFOLIO DEBT SECURITIES - INDUSTRY DIVERSIFICATION Healthcare & Pharmaceuticals Transportation: Cargo 14% 15% Aerospace and Defense Beverage, Food and Tobacco 3% Portfolio Company Loan 3% 7% Consumer goods: Non‐durable High Tech Industries 4% Telecommunications 4% 7% Automotiv
Slide 11: Investment Portfolio
INVESTMENT PORTFOLIO A balanced investment risk / return profile 3Q14 Portfolio Statistics Equity Asset Portfolio Manager 2% 18% Total Portfolio: Fair value $442 million First Lien 45% Debt and Equity Securities Portfolio: CLO Mezz Fair value $276 million 20% Number of issuers 80 2nd Average deal/is
Slide 12: Strong Credit Quality
STRONG CREDIT QUALITY In a portfolio of 88 debt securities, only one was on non-accrual status (representing less than 1% of total investments at fair value) The credit quality of our current portfolio remains strong 79% of the debt securities portfolio is secured as of Q3’14 Data as of 9/30/1
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS NET ASSET VALUE INVESTMENT PORTFOLIO NAV per September 30, 2014 Cost Fair Value September 30, 2014 Fair Value Share Money Market Accounts $ 341,694 $ 341,694 Investments at Fair Value Senior Secured Loan 170,002,011 168,920,608 Investments in money markets $ 341,694 $ 0.01 Junio