Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q3 2021 Earnings Presentation
22 slides from Blackrock Tcp Capital's earnings presentation, Nov 3, 2021
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation September 30, 2021
Slide 2: Forward Looking Statements
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
Slide 3: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights As of September 30, 2021 ▪ Net investment income of $18.7 million, or $0.32 per share, which exceeded the third quarter dividend of $0.30 per share Portfolio ▪ The credit quality of TCPC’s diversified portfolio remains strong, with non-accrual loans Performance limited
Slide 4: Third Quarter 2021 Financial and Portfolio Overview
Third Quarter 2021 Financial and Portfolio Overview As of September 30, 2021 Diversified ▪ Total portfolio fair value of $1.8 billion diversified across 106 portfolio companies Portfolio with an Emphasis on ▪ 90% invested in senior secured debt; 77% of the total portfolio is 1 st lien Less-Cyclical
Slide 5: Diversified Portfolio: Emphasis on Less-Cyclical Businesses
Diversified Portfolio: Emphasis on Less-Cyclical Businesses Substantially all investments subject to independent 3 rd party valuation process every quarter As of September 30, 2021 Emphasis on Less-Cyclical Businesses Industry Diversification(1) ▪ Robust downside analysis performed at underwriting,
Slide 6: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned As of September 30, 2021 Diversified Income Contribution $1.8 billion portfolio fair value 57 90% of portfolio # of portfolio companies is senior secured debt contributing (2) 31 9.4% weighted average effective yield on debt portfolio(1) 6 3 More than
Slide 7: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet As of September 30, 2021 Predominantly First Lien, Diverse Capital Structure(2) Floating Rate Asset Portfolio Seniority(1) SBA First Lien 77% Debentures 8% Credit Second Lien 12% Facilities 7% Junior 0% Equity 45% Equity 10% Fixed / Floating(1) Unsecured Debt F
Slide 8: Limited Exposure to Further Interest Rate Declines
Limited Exposure to Further Interest Rate Declines Decrease in LIBOR 3-Month LIBOR ▪ 3-month LIBOR declined 268 basis points since 3.00 12/31/2018 (from 2.81% to 0.13% as of 9/30/2021) 2.50 2.00 ▪ The cumulative decline in LIBOR over this period has 1.50 resulted in a total impact to net investment
Slide 9: Well-Covered Dividend
Well-Covered Dividend Net investment income of $0.32 per share Declared Q4 2021 dividend of $0.30 per share in Q3 2021 Payable on December 31, 2021 to holders of record Out-earned quarterly dividend of $0.30 per share paid as of December 17, 2021 on September 30, 2021 Consistent coverage of the regu
Slide 10: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s investment platform creates substantial scale and scope that provides insight, access, and expertise in sourcing, underwriting and managing differentiated investments Global Credit Expertise Information Edge One Stop Shop ▪ $155 billion(1) in AUM acros
Slide 11: Breadth and Depth of BlackRock's Global Credit Platform
Breadth and Depth of BlackRock’s Global Credit Platform Global Credit AUM: $155 billion (1) Leveraged Finance Multi-Strategy Credit Private Credit ▪ High Yield ▪ Pan-Credit Solutions ▪ Direct Lending ▪ Bank Loans ▪ Hedge Fund Strategies ▪ Opportunistic Credit ▪ CLOs ▪ Specialty Finance BlackRock Inv
Slide 12: Well Positioned to Manage Through the Cycle
Well Positioned to Manage Through the Cycle Late Cycle Downturn Early Cycle 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 ✓Significant cushion below investment (gene
Slide 13: Net Asset Value ("NAV") Bridge
Net Asset Value (“NAV”) Bridge Year to date NAV increased 6.4%, driven by strong credit performance across the portfolio Quarter over quarter NAV decline of 0.8% primarily resulted from early redemption of the August 2022 Notes Past performance does not guarantee future returns. 13
Slide 14: Strong Track Record
Strong Track Record Book Value per Share and Dividends Paid As of 9/30/2021: $30.00 Annualized return on invested assets (1): 10.7% $27.67 Annualized cash return(2): 9.7% $25.00 Annualized total return on equity(3): 9.2% $20.00 $15.00 $10.00 $5.00 $0.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-
Slide 15: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of September 30, 2021, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 120.6 $ 179.4 L + 1.75% (2) May-26 Funding Facility II 200.0 (3) - 200.0 L + 2.00% (4) A
Slide 16: Investor Friendly Advisory Fee Structure
Investor Friendly Advisory Fee Structure BlackRock TCP Capital Corp. Average Externally Managed BDC(1) ◼ 1.5% up to 1.0x debt to equity; 1.0% above ◼ 1.50% - 1.75% on gross assets (up to 1.0x Base 1.0x debt to equity. Based on gross assets debt to equity; 1.0% above 1.0x debt to (less cash and cash
Slide 17: BlackRock TCP Capital Corp - Response to COVID-19
BlackRock TCP Capital Corp - Response to COVID-19 As of September 30, 2021 Our Team Our Portfolio Our Firm Business continuity procedures Leveraging our team’s more than 20 Thorough and ongoing analysis of continue to be fully operational – years’ experience investing across every company in our por
Slide 18: Quarterly Operating Results
Quarterly Operating Results 2021 2020 Unaudited ($ in thousands, except per share amounts) Q3 Q2 Q1 Q4 Q3 Investment income Interest income $ 40,542 $ 39,769 $ 36,834 $ 40,872 $ 39,823 Dividend income 1,915 1,560 3,408 473 1,271 Other income 259 316 922 1,546 1,754 Total investment income 42,716 41,
Slide 19: Financial Highlights
Financial Highlights 2021 2020 Unaudited Unaudited ($ per share) Q3 Q2 Q1 Q4 Q3 Net investment income 0.32 0.31 0.32 0.35 0.35 Net realized & unrealized gains (losses) (0.02) 0.64 0.30 0.48 0.50 Loss on extinguishment of debt (0.11) - - - (0.04) Net increase (decrease) in net assets from operations
Slide 20: Portfolio Highlights
Portfolio Highlights 2021 2020 Asset Mix of the Investment Portfolio Q3 Q2 Q1 Q4 Q3 (in thousands) Senior secured debt $ 1,576,117 $ 1,601,722 $ 1,548,844 $ 1,444,804 $ 1,476,021 Junior debt 6,350 6,228 6,157 - 26,610 Equity(1) 174,912 218,107 180,390 184,760 126,134 Total investments $ 1,757,378 $
Slide 21: Quarterly Balance Sheets
Quarterly Balance Sheets 2021 2020 (in thousands, except per share data) Unaudited Audited Unaudited ASSETS Q3 Q2 Q1 Q4 Q3 Investments at fair value $ 1,757,378 $ 1,826,057 $ 1,735,391 $ 1,629,564 $ 1,628,765 Cash and cash equivalents 36,588 17,881 14,255 20,007 35,449 Accrued interest income 21,609
Slide 22: Corporate Information
Corporate Information Securities Listing Transfer Agent NASDAQ: TCPC Computershare Inc. (866) 333-6433 (from U.S.) Research Coverage (201) 680-6578 (from outside U.S.) wwww.computershare.com/investor ▪ Bank of America Merrill Lynch ▪ JMP Securities Corporate Headquarters ▪ Keefe, Bruyette & Woods ▪
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