Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q3 2020 Earnings Presentation
21 slides from Blackrock Tcp Capital's earnings presentation, Nov 2, 2020
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation September 30, 2020
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
Slide 3: BlackRock TCP Capital Corp - Response to COVID-19
BlackRock TCP Capital Corp - Response to COVID-19 As of September 30, 2020 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 4: Third Quarter 2020 Highlights
Third Quarter 2020 Highlights As of September 30, 2020, unless otherwise noted Strong Portfolio ▪ 4.1% increase in NAV, 1.8% net market value gain on investments Performance ▪ Strong credit quality; non-accruals limited to 0.6% of the portfolio at fair value ▪ On August 4, successfully replaced the
Slide 5: Third Quarter 2020 Financial and Portfolio Overview
Third Quarter 2020 Financial and Portfolio Overview As of September 30, 2020 ▪ Total portfolio fair value of $1.6 billion diversified across 101 portfolio companies Diversified Portfolio with an ▪ Top five portfolio companies collectively represent less than 19% of the total portfolio Emphasis on No
Slide 6: Diversified Portfolio: Emphasis on Non-Cyclical Businesses
Diversified Portfolio: Emphasis on Non-Cyclical Businesses Substantially all investments subject to independent 3rd party valuation process every quarter As of September 30, 2020 Emphasis on Non-Cyclical Businesses Industry Diversification(1) ▪ Robust downside analysis performed at underwriting, wit
Slide 7: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned As of September 30, 2020 Diversified Income Contribution $1.6 billion portfolio fair value 48 91% of portfolio # of portfolio companies is senior secured debt contributing (2) 35 10.0% weighted average effective yield on debt portfolio(1) 5 2 More tha
Slide 8: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet Predominantly First Lien, Diverse Liability Structure(2),(3) Floating Rate Asset Portfolio Seniority(1) SBA First Lien 82% Debentures 15% Second Lien 16% Junior 2% Unsecured Debt Credit 54% Facilities Fixed / Floating(1) 31% Floating Rate 92% Fixed Rate 8% (1)
Slide 9: Limited Exposure to Further Interest Rate Declines
Limited Exposure to Further Interest Rate Declines Decrease in LIBOR 3-Month LIBOR 3.00 ▪ 3-month LIBOR declined 257 basis points since 2.50 12/31/2018 (from 2.80% to 0.23% as of 9/30/2020) 2.00 ▪ The cumulative decline in LIBOR over this period has 1.50 resulted in a total impact to net investment
Slide 10: Well-Covered and Consistent Dividend
Well-Covered and Consistent Dividend Net investment income of $0.35 per share Declared Q4 2020 dividend of $0.30 in Q3 2020 per share Out-earned quarterly dividend of $0.30 per share paid Payable on December 31, 2020 to holders of record on September 30, 2020 as of December 17, 2020 Consistent cover
Slide 11: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s $7.81 trillion(1) 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 ▪ $130 billi
Slide 12: Breadth and Depth of BlackRock's Global Credit Platform
Breadth and Depth of BlackRock’s Global Credit Platform Global Credit AUM: $130 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 Inve
Slide 13: 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 (ge
Slide 14: Strong Track Record
Strong Track Record Book Value per Share and Dividends Paid $30.00 Annualized total return on equity(1): 8.2% As of Annualized cash return(2): 9.9% 9/30/2020: $25.09 $25.00 Annualized return on invested assets(3): 10.3% $20.00 $15.00 $10.00 $5.00 $0.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-1
Slide 15: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of September 30, 2020, $ in millions Source Capacity Drawn Amount Available Pricing Maturity Operating Facility $ 300.0 (1) $ 163.1 $ 136.9 L + 2.00% (2) May-24 (2) Funding Facility II 200.0 (3) 125.0 75.0 L + 2.00
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: Quarterly Operating Results
Quarterly Operating Results 2020 2019 Unaudited ($ in thousands, except per share amounts) Q3 Q2 Q1 Q4 Q3 Investment income Interest income $ 39,823 $ 40,331 $ 40,632 $ 47,123 $ 49,854 Lease income - - 38 74 74 Dividend income 1,271 302 428 605 914 Other income 1,754 4,481 153 8 798 Total investment
Slide 18: Financial Highlights
Financial Highlights 2020 2019 Unaudited Unaudited ($ per share) Q3 Q2 Q1 Q4 Q3 Net investment income 0.35 0.36 0.38 0.38 0.43 Net realized & unrealized gains (losses) 0.50 0.44 (1.56) (0.40) (0.12) Loss on extinguishment of debt (0.04) - - - - Net increase (decrease) in net assets from operations 0
Slide 19: Portfolio Highlights
Portfolio Highlights 2020 2019 Asset Mix of the Investment Portfolio Q3 Q2 Q1 Q4 Q3 (in thousands) Senior secured debt $ 1,476,021 $ 1,473,504 $ 1,503,280 $ 1,513,909 $ 1,555,934 Junior debt 26,610 24,906 18,755 21,285 20,768 Equity 126,134 109,171 103,884 114,313 104,573 Total investments $ 1,628,7
Slide 20: Quarterly Balance Sheets
Quarterly Balance Sheets 2020 2019 (in thousands, except per share data) Unaudited Unaudited Unaudited Audited Unaudited ASSETS Q3 Q2 Q1 Q4 Q3 Investments at fair value $ 1,628,765 $ 1,607,581 $ 1,625,919 $ 1,649,507 $ 1,681,275 Cash and cash equivalents 35,449 20,648 8,575 44,849 80,069 Accrued int
Slide 21: 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 ▪ D.A. Davidson Corporate Headquarters ▪ Deutsche Bank ▪ JMP Securit
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