Blackrock Tcp Capital Corp. · NASDAQ:TCPC

Blackrock Tcp Capital — Q3 2018 Earnings Presentation

19 slides from Blackrock Tcp Capital's earnings presentation, Nov 8, 2018

  1. Slide 1: BlackRock TCP Capital Corp. Investor Presentation

    BlackRock TCP Capital Corp. Investor Presentation Quarter Ended September 30, 2018 © 2018 Tennenbaum Capital Partners, LLC. All Rights Reserved.

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements Prospective investors considering an investment in BlackRock 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 f

  3. Slide 3: BlackRock TCP Capital Corp – Key Highlights

    BlackRock TCP Capital Corp – Key Highlights As of September 30, 2018 Who we are What we do How we do it $1.6 billion diversified portfolio Advised by primarily composed of directly Value-oriented investing focused Tennenbaum Capital Partners originated senior secured on middle-market with a 20 year

  4. Slide 4: Third Quarter 2018 Highlights

    Third Quarter 2018 Highlights As of September 30, 2018 Dividend Coverage  Net investment income of $0.42; dividends of $0.36 per share  Effective yield on the debt portfolio increased to 11.7%(1) Portfolio  92% of the total portfolio consists of senior secured debt  92% of the debt portfolio is

  5. Slide 5: Well-Covered and Consistent Dividend

    Well-Covered and Consistent Dividend  Net investment income of $0.42 per share in Q3 2018  Quarterly dividend of $0.36 per share paid on September 28, 2018  Declared Q4 2018 dividend of $0.36 per share  Payable on December 31, 2018 to holders of record as of December 17, 2018  Dividend covered

  6. Slide 6: Conservatively Positioned and Diversified Portfolio

    Conservatively Positioned and Diversified Portfolio  $1.6 billion portfolio fair value  92% of portfolio is senior secured debt Investment by Industry  Majority of our portfolio companies  11.7% weighted average effective yield on contribute <1% to recurring income debt portfolio(1) Diversified

  7. Slide 7: Strategically Positioned Balance Sheet

    Strategically Positioned Balance Sheet Primarily Floating Rate Asset Portfolio Liabilities Primarily Fixed Rate Fixed Floating Rate 8% Rate 33% Floating Fixed Rate 92% Rate 67% Positive annual impact on net income of base rate increases in interest rates(1): Net Investment Net Investment Income Basi

  8. Slide 8: Strong Track Record of Positive Performance

    Strong Track Record of Positive Performance Book Value per Share and Dividends Paid As of $26.00 9/30/2018: $24.07 $24.00 $22.00 $20.00 $ 9.56 $18.00 $16.00 $14.76 $14.00 $12.00 $14.51 $10.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15 Q1-16 Q3-16 Q1-17 Q3-17 Q1-18 Q2-18 Book Value per Share Cu

  9. Slide 9: TCPC Relative Outperformance

    TCPC Relative Outperformance Out-performed the Wells Fargo BDC Index by 23% since our IPO Total Return Performance (1) 200% 190% As of 9/30/2018 180% TCPC: 78.2% 170% 160% WFBDC: 63.7% 150% 140% 130% 120% 110% 100% 90% BlackRock TCP Capital Corp. Wells Fargo Business Development Company Index (1) As

  10. Slide 10: Summary of Advisor's Transaction with BlackRock

    Summary of Advisor’s Transaction with BlackRock Management of BlackRock TCP Capital Corp. Continues with Same Team, Greater Resources • Effective August 1, 2018, Tennenbaum Capital Partners, LLC, our investment advisor (the “Advisor”), merged with and into an indirect wholly-owned subsidiary of Blac

  11. Slide 11: Competitive Advantages of BlackRock

    Competitive Advantages of BlackRock BlackRock’s $6.4(1) trillion investment platform creates substantial scale and scope that seeks to provide insight, access, and expertise in sourcing and underwriting differentiated investment opportunities Global Credit Expertise Information Edge One Stop Shop •

  12. Slide 12: TCP Now a Part of BlackRock's Global Credit Platform

    TCP Now a Part of BlackRock’s Global Credit Platform Global Credit AUM: More than $90 billion(1) Leveraged Finance Multi-Strategy Credit Private Credit  High Yield  Credit Strategies Income  Middle Market Investing  Bank Loans  Credit Plus  Opportunistic Debt  CLOs  Commingled SMAs  Special

  13. Slide 13: Quarterly Operating Results

    Quarterly Operating Results Three Months Ended (Unaudited; dollar amounts in thousands, except per share data) 9/30/2018 6/30/2018 3/31/2018 12/31/2017 9/30/2017 Investment income Interest income $ 49,348 $ 48,318 $ 43,825 $ 46,424 $ 42,341 Lease income 74 74 74 71 74 Dividend income 59 29 18 237 -

  14. Slide 14: Financial Highlights

    Financial Highlights Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 ($ per share) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Net investment income 0.42 0.41 0.37 0.41 0.38 Net realized & unrealized gains (losses) (0.16) (0.34) 0.09 (0.18) (0.13) Net increase in net assets from operations 0

  15. Slide 15: Portfolio Highlights

    Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Senior secured debt $ 1,433,044 $ 1,490,181 $ 1,505,586 $ 1,404,729 $ 1,463,295 Junior debt 43,277 43,009 42,750 41,008 - Equity 83,792 80,641 72,052 68,796 65,455 Total investments 1,56

  16. Slide 16: Quarterly Balance Sheets

    Quarterly Balance Sheets 9/30/2018 6/30/2018 3/31/2018 12/31/2017 9/30/2017 (in thousands, except per share data) (unaudited) (unaudited) (unaudited) (audited) (unaudited) ASSETS Investments at fair value $ 1,560,113 $ 1,613,831 $ 1,620,388 $ 1,514,533 $ 1,528,750 Cash and cash equivalents 90,283 27

  17. Slide 17: Investor Friendly Advisory Fee Structure

    Investor Friendly Advisory Fee Structure BlackRock TCP Capital BlackRock TCP Capital Average Externally Corp. (Existing) Corp. (Proposed) Managed BDC(1)  1.5% on gross assets  1.5% up to 1.0x debt to  1.50% - 1.75% on gross (less cash and cash equity; 1.0% above 1.0x assets equivalents) debt to e

  18. Slide 18: Diversified Sources of Funding

    Diversified Sources of Funding As of September 30, 2018 Source Capacity Drawn Amount Available Pricing Maturity SVCP 2022 Facility $125.0mm $50.0mm $75.0mm L + 2.25% Feb-22 (1) 2019 Convertible Notes $107.4mm $107.4mm - '5.25% Dec-19 (2) 2022 Convertible Notes $137.8mm $137.8mm - 4.625% Mar-22 (3) 2

  19. Slide 19: Contact Information

    Contact Information Investor Relations Katie McGlynn 2951 28th Street, Suite 1000 Santa Monica, CA 90405 (310) 566-1094 investor.relations@tcpcapital.com www.tcpcapital.com Transfer Agent EQ Shareholder Services (800) 468-9716 (from U.S.) (651) 450-4064 (from outside U.S.) www.shareowneronline.com 1

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