Blackrock Tcp Capital Corp. · NASDAQ:TCPC

Blackrock Tcp Capital — TCP Capital — Q2 2017 Earnings Presentation

15 slides from Blackrock Tcp Capital's earnings presentation, Aug 3, 2017

  1. Slide 1: TCP Capital Corp. Investor Presentation

    TCP Capital Corp. Investor Presentation Quarter Ended June 30, 2017 © 2017 Tennenbaum Capital Partners, LLC. All Rights Reserved.

  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: TCP Capital Corp.

    TCP Capital Corp.  Business development company (BDC)  Trades on NASDAQ: “TCPC” TCPC  Expects to distribute most of its earnings as dividends(1)  8.6% current dividend yield(2) Investment We seek to generate high total returns through current income and Objective capital appreciation, with an em

  4. Slide 4: Dividend Stability

    Dividend Stability  Net investment income(1) of $0.43 per share  Quarterly dividend of $0.36 per share paid on June 30, 2017  Declared Q3 2017 dividend of $0.36 per share  Payable on September 29, 2017 to holders of record as of September 15, 2017  Dividend coverage each quarter since inception

  5. Slide 5: TCPC Comparative Performance

    TCPC Comparative Performance Out-performed the Wells Fargo BDC Index Total Return Performance 200% 6/30/17: 87.6% 180% 160% 140% 120% 100% 80% 2012 2013 2014 2015 2016 2017 TCP Capital Corp. Wells Fargo Business Development Company Index (1) Assumes a fixed investment on April 6, 2012 in TCP Capital

  6. Slide 6: Strong Track Record of Positive Performance

    Strong Track Record of Positive Performance Book Value per Share and Dividends Paid $24.00 $22.80 $23.00 $22.32 $21.95 $22.00 $21.52 $21.06 $21.00 $20.62 $20.34 $20.38 $19.98 $20.00 $19.55 $19.18 $19.17 $19.00 $18.70 $7.76 $18.30 $7.40 $7.04 $17.80 $6.68 $18.00 $6.32 $17.27 $5.24 $5.60 $5.96 $4.88 $

  7. Slide 7: Portfolio Highlights as of June 30, 2017

    Portfolio Highlights as of June 30, 2017  $1.45 billion portfolio fair value  95% of portfolio is senior secured debt Investment by Industry  11.1% weighted average effective yield on  85% of debt portfolio is floating rate debt portfolio(1) Restaurants 1.2% Retail 1.2% Apparel Manufacturing 1.3

  8. Slide 8: Conservatively Positioned Portfolio

    Conservatively Positioned Portfolio As of June 30, 2017 Portfolio by Asset Type Debt Portfolio by Interest Type Leverage by Interest Type Mezzanine / Junior Equity 5% Debt <1% Floating rate 46% Fixed Rate 15% Fixed rate 54% Floating Rate 85% Senior Secured Debt 95% Positive annual impact on net inco

  9. Slide 9: Portfolio Highlights

    Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Senior secured debt $ 1,378,055 $ 1,273,608 $ 1,248,888 $ 1,221,182 $ 1,176,581 Mezzanine/subordinated debt - - - - - Equity 67,893 64,902 66,082 55,248 54,920 Total investments 1,445,94

  10. Slide 10: Quarterly Operating Results

    Quarterly Operating Results Three Months Ended (Unaudited; dollar amounts in thousands, except per share data) 6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016 Investment income Interest income $ 45,982 $ 38,780 $ 39,104 $ 38,277 $ 34,763 Lease income 74 75 74 71 650 Dividend income 17 - - - - Oth

  11. Slide 11: Financial Highlights

    Financial Highlights ($ per share) Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Net investment income before taxes $ 0.54 $ 0.47 $ 0.46 $ 0.49 $ 0.47 Excise taxes - - (0.01) - - Incentive compensation on NII (0.11) (0.09) (0.09) (0.10) (0.09) Net investment income, after incentive(1) 0.43 0.38 0.36 0.39

  12. Slide 12: Quarterly Balance Sheets

    Quarterly Balance Sheets 6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016 (in thousands, except per share data) (unaudited) (unaudited) (audited) (unaudited) (unaudited) ASSETS Investments at fair value $ 1,445,948 $ 1,338,510 $ 1,314,970 $ 1,276,430 $ 1,231,501 Cash and cash equivalents 41,574 55

  13. Slide 13: Best-In-Class Advisory Fee Structure

    Best-In-Class Advisory Fee Structure Typical 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) Incentive Fee Hurdle  2.0% quarterly return on NAV  2.0% quarterly return on NAV  Capital Gains: 20%

  14. Slide 14: Diversified Sources of Funding

    Diversified Sources of Funding As of June 30, 2017 Source Capacity Drawn Amount Available Pricing Maturity SVCP Revolver $116.0mm $0.0mm $116.0mm L + 2.50% Jul-18 Term Loan $100.5mm $100.5mm - L + 2.50% Jul-18 (1) 2019 Convertible Senior Unsecured Notes $106.8mm $106.8mm - '5.25% Dec-19 2022 Convert

  15. Slide 15: Contact Information

    Contact Information Investor Relations 2951 28th Street, Suite 1000 Santa Monica, CA 90405 (310) 566-1094 investor.relations@tcpcapital.com www.tcpcapital.com Transfer Agent Wells Fargo Shareholder Services (800) 468-9716 (from U.S.) (651) 450-4064 (from outside U.S.) www.shareowneronline.com 15

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