Blackrock Tcp Capital Corp. · NASDAQ:TCPC

Blackrock Tcp Capital — Q2 2018 Earnings Presentation

18 slides from Blackrock Tcp Capital's earnings presentation, Aug 8, 2018

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

    BlackRock TCP Capital Corp. Investor Presentation Quarter Ended June 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. Overview

    BlackRock TCP Capital Corp.(1) Overview  Business development company (BDC)  Trades on NASDAQ: “TCPC” TCPC  Expects to distribute most of its earnings as dividends(2)  9.7% current dividend yield(3) Investment We seek to generate high total returns through current income and Objective capital ap

  4. Slide 4: Second Quarter 2018 Highlights

    Second Quarter 2018 Highlights Dividend  Net investment income of $0.41; dividends of $0.36 per share Coverage Deployment  Deployment of $125 million gross; $12 million net of dispositions Capital Markets  50 basis point reduction of interest rate on TCPC Funding Facility to Access L+2.00%  Effe

  5. Slide 5: Well-Covered and Stable Dividend

    Well-Covered and Stable Dividend  Net investment income of $0.41 per share in Q2 2018  Quarterly dividend of $0.36 per share paid on June 29, 2018  Declared Q3 2018 dividend of $0.36 per share  Payable on September 28, 2018 to holders of record as of September 14, 2018  Dividend covered in all

  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  11.6% 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 36% Floating Fixed Rate 92% Rate 64% Positive annual impact on net income of base rate increases in interest rates(1): Net Investment Net Investment Income Basi

  8. Slide 8: Portfolio Highlights

    Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Senior secured debt $ 1,490,181 $ 1,505,586 $ 1,404,729 $ 1,463,295 $ 1,378,055 Junior debt 43,009 42,750 41,008 - - Equity 80,641 72,052 68,796 65,455 67,893 Total investments 1,613,831

  9. Slide 9: Strong Track Record of Positive Performance

    Strong Track Record of Positive Performance Book Value per Share and Dividends Paid $26.00 As of 6/30/2018: $24.00 $23.81 $22.00 $20.00 $ 9.20 $18.00 $16.00 $14.76 $14.61 $14.00 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 Book Value per Share Cumulative Dividends P

  10. Slide 10: TCPC Relative Outperformance

    TCPC Relative Outperformance Out-performed the Wells Fargo BDC Index by 36% since our IPO Total Return Performance (1) 200% 190% As of 6/30/2018 180% TCPC: 76.5% 170% 160% WFBDC: 56.2% 150% 140% 130% 120% 110% 100% 90% BlackRock TCP Capital Corp. Wells Fargo Business Development Company Index (1) As

  11. Slide 11: Summary of Advisor's Transaction with BlackRock

    Summary of Advisor’s Transaction with BlackRock Management of BlackRock TCP Capital Corp. to Continue 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 Bl

  12. Slide 12: BlackRock Transaction Benefits – Enhancing Value for TCPC Shareholders

    BlackRock Transaction Benefits – Enhancing Value for TCPC Shareholders • Transaction couples TCP’s longstanding experience in private credit origination and underwriting with BlackRock’s credit expertise, brand and global scope. In the current environment, this transaction with BlackRock enables us

  13. Slide 13: Quarterly Operating Results

    Quarterly Operating Results Three Months Ended (Unaudited; dollar amounts in thousands, except per share data) 6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017 Investment income Interest income $ 48,318 $ 43,825 $ 46,424 $ 42,341 $ 45,982 Lease income 74 74 71 74 74 Dividend income 29 18 237 - 17

  14. Slide 14: Financial Highlights

    Financial Highlights Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 ($ per share) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Net investment income 0.41 0.37 0.41 0.38 0.43 Net realized & unrealized gains (losses) (0.34) 0.09 (0.18) (0.13) (0.08) Net increase in net assets from operations 0

  15. Slide 15: Quarterly Balance Sheets

    Quarterly Balance Sheets 6/30/2018 3/31/2018 12/31/2017 9/30/2017 6/30/2017 (in thousands, except per share data) (unaudited) (unaudited) (audited) (unaudited) (unaudited) ASSETS Investments at fair value $ 1,613,831 $ 1,620,388 $ 1,514,533 $ 1,528,750 $ 1,445,948 Cash and cash equivalents 27,592 13

  16. Slide 16: Best-In-Class Advisory Fee Structure

    Best-In-Class Advisory Fee Structure BlackRock TCP Capital Corp. Typical Externally Managed BDCs(1) Base Management Fee  1.5% on gross assets (less cash and  1.5% - 2.0% on gross assets cash equivalents) Incentive Fee Hurdle  8% annualized total return on NAV,  7% annualized NII return on NAV, c

  17. Slide 17: Diversified Sources of Funding

    Diversified Sources of Funding As of June 30, 2018 Source Capacity Drawn Amount Available Pricing Maturity SVCP 2022 Facility $125.0mm $56.6mm $68.4mm L + 2.25% Feb-22 2019 Convertible Notes $107.2mm (1) $107.2mm - '5.25% Dec-19 2022 Convertible Notes $137.7mm (2) $137.7mm - 4.625% Mar-22 2022 Notes

  18. Slide 18: 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 EQ Shareholder Services (800) 468-9716 (from U.S.) (651) 450-4064 (from outside U.S.) www.shareowneronline.com 18

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