Blackrock Tcp Capital Corp. · NASDAQ:TCPC

Blackrock Tcp Capital — TCP Capital — Q4 2016 Earnings Presentation

16 slides from Blackrock Tcp Capital's earnings presentation, Feb 28, 2017

  1. Slide 1: TCP Capital Corp. Investor Presentation, Quarter Ended December 31, 2016

    TCP Capital Corp. Investor Presentation Quarter Ended December 31, 2016 © 2017 Tennenbaum Capital Partners, LLC. All Rights Reserved.

  2. 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

  3. 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

  4. Slide 4: 2016 Highlights and Recent Achievements

    2016 Highlights and Recent Achievements  Substantially out-earned our dividends for the year  $65 million in new equity through two transactions:  $30 million through private placement of convertible notes, which converted to common equity  $35.3 million through a registered direct offering of c

  5. Slide 5: TCPC Comparative Performance

    TCPC Comparative Performance Out-performed both the S&P 500 Total Return and Wells Fargo BDC Indices Total Return Performance(1) 79.8% 180% 170% 160% 150% 140% 130% 120% 110% 100% 90% 80% 2012 2013 2014 2015 2016 TCP Capital Corp. S&P 500 Total Return Index Wells Fargo Business Development Company I

  6. Slide 6: Dividend Stability

    Dividend Stability  Net investment income(1) of $0.39 per share, and after taxes and a one-time expense $0.36 per share  Quarterly dividend of $0.36 per share paid on December 31, 2016  Declared Q1 2017 dividend of $0.36 per share  Payable on March 31, 2017 to holders of record as of March 17, 2

  7. Slide 7: Strong Track Record of Positive Performance

    Strong Track Record of Positive Performance Book Value per Share and Dividends Paid $21.95 $22.00 $21.52 $21.06 $21.00 $20.62 $20.38 $20.34 $19.98 $20.00 $19.55 $19.18 $19.17 $19.00 $18.70 $18.30 $7.04 $17.80 $6.68 $18.00 $6.32 $5.24 $5.96 $4.88 $5.60 $17.27 $3.75 $4.52 $17.00 $16.79 $3.39 $4.16 $16

  8. Slide 8: Portfolio Highlights as of December 31, 2016

    Portfolio Highlights as of December 31, 2016  $1.3 billion portfolio fair value  95% of portfolio is senior secured debt Investment by Industry  10.9% weighted average effective yield on  81% of debt portfolio is floating rate debt portfolio(1) (1) Weighted average annual effective yield include

  9. Slide 9: Conservatively Positioned Portfolio

    Conservatively Positioned Portfolio As of December 31, 2016 Portfolio by Asset Type Debt Portfolio by Interest Type Leverage by Interest Type Mezzanine / Junior Equity 5% Debt <1% Fixed Rate 19% Floating Rate 81% Floating rate 48% Fixed rate 52% Senior Secured Debt 95% Positive annual impact on net

  10. Slide 10: Portfolio Highlights

    Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Senior secured debt $ 1,248,888 $ 1,221,182 $ 1,176,581 $ 1,173,244 $ 1,129,571 Mezzanine/subordinated debt - - - 65 965 Equity 66,082 55,248 54,920 53,836 52,384 Total investments 1,314

  11. Slide 11: Quarterly Operating Results

    Quarterly Operating Results Three Months Ended (Unaudited; dollar amounts in thousands, except per share data) 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 Investment income Interest income $ 39,104 $ 38,277 $ 34,763 $ 32,874 $ 39,159 Lease income 74 71 650 776 375 Other income 349 121 182 93

  12. Slide 12: Financial Highlights

    Financial Highlights ($ per share) Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Net investment income before taxes (1) $ 0.46 0.49 $ 0.47 $ 0.47 $ 0.55 Excise taxes (0.01) - - - (0.02) Incentive compensation on NII (0.09) (0.10) (0.09) (0.09) (0.11) Net investment income, after incentive(1) 0.36 0.39 0.3

  13. Slide 13: Quarterly Balance Sheets

    Quarterly Balance Sheets 12/31/2016 9/30/2016 6/30/2016 3/31/2016 12/31/2015 (in thousands, except per share data) (audited) (unaudited) (unaudited) (unaudited) (audited) ASSETS Investments at fair value $ 1,314,970 1,276,430 $ 1,231,501 $ 1,227,145 $ 1,182,920 Cash and cash equivalents 53,580 140,8

  14. Slide 14: Best-In-Class Advisory Fee Structure

    Best-In-Class Advisory Fee Structure Typical Externally Managed BDCs(1) TCP Capital Corp. Base Management Fee  1.5% - 2.0% on gross assets  1.5% on gross assets (less cash and cash equivalents) Incentive Fee Hurdle  2.0% quarterly return on NAV  2.0% quarterly return on NAV  Capital Gains: 20%

  15. Slide 15: Diversified Sources of Funding

    Diversified Sources of Funding As of December 31, 2016 Source Capacity Drawn Amount Available Pricing Maturity SVCP Revolver $116.0mm - $116.0mm L + 2.50% Jul-18 Term Loan $100.5mm $100.5mm - L + 2.50% Jul-18 2019 Convertible Senior Unsecured Notes $106.5mm (1) $106.5mm - '5.25% Dec-19 2022 Converti

  16. 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

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