Slide 1: TCP Capital Corp. Investor Presentation, Quarter Ended June 30, 2014
TCP Capital Corp. Investor Presentation Quarter Ended June 30, 2014
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
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) 8.4% current dividend yield(2) Investment We seek to generate high total returns through current income and Objective capital appreciation, with an em
Slide 4: Recent Achievements
Recent Achievements In May, received $75 million leverage commitment from the SBA In June, TCPC Funding Facility commitment increased to $200 million; accordion feature expanded to $250 million In June, closed private placement of $108 million of 5.25% convertible notes due Dec. 2019 In July
Slide 5: Q2 2014 Highlights
Q2 2014 Highlights Net investment income(1) of $0.40 per share – Quarterly dividend of $0.36 and special dividend of $0.05 per share paid on June 30, 2014 Declared Q3 2014 quarterly dividend of $0.36 per share payable on September 30, 2014 to holders of record as of September 16, 2014 Per Share
Slide 6: Dividend History: $3.75 Declared Since IPO
Dividend History: $3.75 Declared Since IPO $4.00 $3.75 $3.50 $3.39 $2.98 $3.00 $2.62 $2.50 $2.21 $2.00 $1.85 $1.49 $1.50 $1.09 $1.00 $0.69 $0.50 $0.34 $0.34 $0.35 $0.40 $0.40 $0.36 $0.36 $0.41 $0.36 $0.41 $0.36 $0.05 $0.05 $0.05 $0.05 $0.35 $0.35 $0.36 $0.36 $0.00 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13
Slide 7: Portfolio Growth Since IPO
Portfolio Growth Since IPO $1,000.0 $900.0 $894.7 $800.0 Dollars in millions $700.0 $600.0 $500.0 $400.0 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 7
Slide 8: Portfolio Highlights as of June 30, 2014
Portfolio Highlights as of June 30, 2014 Investment by Industry Satellite Telecom 1.2% Merchant Wholesalers 1.0% Synthetic Fibers & Filaments Mfg 1.2% Computer Equipment Mfg 1.0% $895 million portfolio fair value Electric Power Generation & Distribution 10.7% average effective yield Other 5.8% 1
Slide 9: Financial Highlights
Financial Highlights ($ per share) Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013 (1) Net investment income before taxes 0.50 0.48 $ 0.50 $ 0.50 $ 0.47 Excise taxes - - (0.03) - - Net investment income(1) 0.50 0.48 0.47 0.50 0.47 Net realized & unrealized gains (losses) (0.09) 0.14 0.10 0.11 0.03 Incentive
Slide 10: Portfolio Highlights
Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013 Senior secured debt $ 864,188 $ 773,780 $ 708,726 $ 646,708 $ 515,778 Senior unsecured debt - 7,560 7,632 7,629 7,591 Mezzanine/subordinated debt 1,007 1,402 10,157 11,090 10,859 Equity
Slide 11: Quarterly Balance Sheets
Quarterly Balance Sheets 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 (in thousands, except per share data) (unaudited) (unaudited) (audited) (unaudited) (unaudited) ( ASSETS Investments at fair value $ 894,669 $ 815,658 $ 766,263 $ 704,095 $ 571,762 Cash and cash equivalents 29,380 27,141 22,
Slide 12: Quarterly Operating Results
Quarterly Operating Results For the Three Months Ended (Unaudited; dollar amounts in thousands, except per share data) 6/30/2014 3/31/2014 12/31/2013 9/30/2013 6/30/2013 Investment Income Interest income $ 23,925 $ 19,735 $ 20,226 $ 16,490 $ 13,762 Dividend income - 1,969 - - - Other income 662 965
Slide 13: Diversified Sources of Funding
Diversified Sources of Funding Pricing Maturity Funding Sources Range Date $116m Operating Company Credit Facility L + 0.44%1 July 2016 $134m Preferred Interests L + 0.85% July 2016 TCPC $200m TCPC Funding I Credit Facility2 L + 2.50%3 May 2017 $75m SBA Leverage Program4 TBD 10 years $108m
Slide 14: Best-In-Class Advisory Fee Structure
Best-In-Class Advisory Fee Structure Select Externally Managed BDCs TCP Capital Corp. 1.5% - 2.0% on gross assets 1.5% on gross assets (less cash and cash equivalents) Base Management Fee 1.75% - 2.00% quarterly return on NAV 2.00% quarterly return on NAV Incentive Fee Hurdle (on Ordinary In
Slide 15: Strong Track Record of Positive Performance
Strong Track Record of Positive Performance Book Value per Share and Dividends Paid $19.00 $18.70 $18.50 $18.30 $18.00 $17.80 $17.50 $17.27 $17.00 $3.39 $16.79 $2.98 $16.50 $16.40 $2.62 $2.21 $16.00 $15.80 $1.85 $15.48 $1.49 $15.50 $15.04 $1.09 $0.69 $15.00 $0.34 $15.18 $15.32 $15.31 $14.50 $14.91 $
Slide 16: 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 16