Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q3 2019 Earnings Presentation
20 slides from Blackrock Tcp Capital's earnings presentation, Nov 6, 2019
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation September 30, 2019
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 – Key Highlights
BlackRock TCP Capital Corp – Key Highlights As of September 30, 2019 Who we are What we do How we do it $1.7 billion diversified portfolio Advised by Tennenbaum Capital Value-oriented investing primarily composed of directly Partners (“TCP”) with a 20-year focused on middle-market originated senior
Slide 4: Third Quarter 2019 Financial and Portfolio Highlights
Third Quarter 2019 Financial and Portfolio Highlights As of September 30, 2019 Dividend Coverage ▪ Net investment income of $0.43; dividend of $0.36 per share Disciplined ▪ Gross deployment of $176 million; net dispositions of $5 million Deployment ▪ Total portfolio reached a record 105 companies ▪
Slide 5: Well-Covered and Consistent Dividend
Well-Covered and Consistent Dividend Net investment income of $0.43 per share Declared Q4 2019 dividend of $0.36 in Q3 2019 per share Out-earned quarterly dividend of $0.36 per share paid Payable on December 31, 2019 to holders of record on September 30, 2019 as of December 17, 2019 Dividend covered
Slide 6: Conservatively Positioned and Diversified Portfolio
Conservatively Positioned and Diversified Portfolio Majority of our portfolio 10.6% weighted $1.7 billion 93% of portfolio companies contribute average effective yield portfolio fair value is senior secured debt <1% to recurring income on debt portfolio(1) Diversified Income Contribution Industry Di
Slide 7: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet Predominantly Floating Rate Asset Portfolio Liabilities Primarily Fixed Rate 8% 29% Fixed Rate Fixed Rate Floating Rate Floating Rate 71% 92% Annual impact on net income of changes in interest rates(1) Basis Point Change Net Investment Income Net Investment Inc
Slide 8: Strong Track Record of Positive Performance
Strong Track Record of Positive Performance Book Value per Share and Dividends Paid As of 9/30/2019: Book Value per Share Cumulative Dividends Paid per Share (Post IPO) $26.00 $24.59 $24.00 $22.00 $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15 Q1-16 Q3-16
Slide 9: TCPC Outperformance
TCPC Outperformance Outperformed the Wells Fargo BDC Index by 24% since our IPO(1) BlackRock TCP Capital Corp. Wells Fargo Business Development Company Index As of 10/31/2019 200% TCPC: 92.3% 190% 180% 170% WFBDC: 74.3% 160% 150% 140% 130% 120% 110% 100% 90% (1) Assumes a fixed investment on April 6
Slide 10: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s $6.96 trillion(1) investment platform creates substantial scale and scope that provides insight, access, and expertise in sourcing and underwriting differentiated investment opportunities Global Credit Expertise Information Edge One Stop Shop ▪ $105 bi
Slide 11: Breadth and Depth of the BlackRock's Global Credit Platform
Breadth and Depth of the BlackRock’s Global Credit Platform Global Credit AUM: $105 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
Slide 12: Today's Middle Market Environment
Today’s Middle Market Environment Opportunities Challenges ~200,000(1) U.S. middle-market businesses, Uptick in new market participants is intensifying representing one-third of private sector GDP, competition and pressuring yields many with limited access to capital Middle market businesses continu
Slide 13: Capturing Opportunities Throughout the Cycle
Capturing Opportunities Throughout the Cycle Late Cycle Downturn Early Cycle Mid Cycle Tight Financing Easy Financing Excess Capacity Excess Demand Strategy attributes are well positioned for a late stage cycle ✓ Senior secured, top of the capital structure ✓ Significant cushion below investment (ge
Slide 14: Investor Friendly Advisory Fee Structure
Investor Friendly Advisory Fee Structure BlackRock TCP Capital Corp. BlackRock TCP Capital Corp. Average Externally Managed (Thru 2/8/2019) (Post 2/8/2019) BDC(1) ◼ 1.5% on gross assets (less cash ◼ 1.5% up to 1.0x debt to equity; ◼ 1.50% - 1.75% on gross assets and cash equivalents) 1.0% above 1.0x
Slide 15: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Standard & Poor’s and Moody’s As of September 30, 2019, $ in millions Source Capacity Drawn Amount Available Pricing Maturity SVCP Facility $ 270.0 $ 108.0 $ 162.0 L + 2.00% May-23 TCPC Funding Facility 350.0 177.5 172.5 L + 2.00% (5)
Slide 16: Quarterly Operating Results
Quarterly Operating Results 2019 2018 Unaudited ($ in thousands, except per share amounts) Q3 Q2 Q1 Q4 Q3 Investment income Interest income $ 49,854 $ 47,631 $ 46,977 $ 47,657 $ 49,348 Lease income 74 74 74 74 74 Dividend income 914 392 480 646 59 Other income 798 78 9 6 - Total investment income 51
Slide 17: Financial Highlights
Financial Highlights 2019 2018 Unaudited Unaudited ($ per share) Q3 Q2 Q1 Q4 Q3 Net investment income 0.43 0.41 0.40 0.40 0.42 Net realized & unrealized gains (losses) (0.12) (0.59) 0.01 (0.42) (0.16) Net increase in net assets from operations 0.31 (0.18) 0.41 (0.02) 0.26 Dividend paid 0.36 (0.36) (
Slide 18: Portfolio Highlights
Portfolio Highlights 2019 2018 Asset Mix of the Investment Portfolio Q3 Q2 Q1 Q4 Q3 (in thousands) Senior secured debt $ 1,555,934 $ 1,558,763 $ 1,476,326 $ 1,471,583 $ 1,433,044 Junior debt 20,768 50,331 43,722 43,526 43,277 Equity 104,573 80,088 84,780 82,177 83,792 Total investments $ 1,681,275 $
Slide 19: Quarterly Balance Sheets
Quarterly Balance Sheets 2019 2018 (in thousands, except per share data) Unaudited Unaudited Unaudited Audited Unaudited ASSETS Q3 Q2 Q1 Q4 Q3 Investments at fair value $ 1,681,275 $ 1,689,182 $ 1,604,828 $ 1,597,286 $ 1,560,113 Cash and cash equivalents 80,069 21,858 26,752 27,920 90,283 Accrued in
Slide 20: Corporate Information
Corporate Information Securities Listing Transfer Agent NASDAQ: TCPC Equiniti Shareholder Services (800) 468-9716 (from U.S.) Research Coverage (651) 450-4064 (from outside U.S.) www.shareowneronline.com ▪ Bank of America Merrill Lynch ▪ D.A. Davidson Corporate Headquarters ▪ Deutsche Bank ▪ JMP Sec
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