Slide 1: TCP Capital Corp. Investor Presentation, Quarter Ended December 31, 2014
TCP Capital Corp. Investor Presentation Quarter Ended December 31, 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) 8.7% current dividend yield(2) Investment We seek to generate high total returns through current income and Objective capital appreciation, with an em
Slide 4: 2014 TCPC Performance
2014 TCPC Performance 115.00% 110.00% TCPC 9.5% 105.00% 100.00% Wells Fargo Business 95.00% Development Company Index (7.1%) 90.00% Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 2014 TCPC Total Return 9.5% Source: Bloomberg Assumes reinvestment of dividends 4
Slide 5: Summary of Annual Results
Summary of Annual Results (in thousands, except per share data) 2014 2013 2012 Total investments $ 1,081,901 $ 766,263 $ 517,683 Net investment income(1) 75,854 52,836 38,718 Net investment income per share(1) 1.93 2.04 1.80 (1) (2) Net investment income per share, after incentive 1.54 1.63 NA Regul
Slide 6: Accretive Offerings
Accretive Offerings $17.50 $17.33 $17.05 $17.00 $16.50 $16.00 $16.00 $15.76 Price Per Share $15.63 $15.50 $15.43 $15.38 $15.00 IPO at $14.75 $15.18 $15.13 $15.05 $14.76 $14.50 $14.00 $13.50 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-1
Slide 7: Q4 2014 Highlights
Q4 2014 Highlights Deployed $183 million in 10 investments Net investment income before taxes(1) of $0.40 per share – Quarterly dividend of $0.36 per share paid on December 31, 2014 Declared Q1 2015 regular quarterly dividend of $0.36 per share – Payable on March 31, 2015 to holders of record
Slide 8: Strong Track Record of Positive Performance
Strong Track Record of Positive Performance Book Value per Share and Dividends Paid $20.00 $19.18 $19.17 $19.00 $18.70 $18.30 $18.00 $17.80 $17.27 $3.75 $17.00 $16.79 $3.39 $4.16 $2.98 $16.40 $2.62 $15.80 $2.21 $16.00 $1.85 $15.48 $1.49 $15.04 $0.69 $1.09 $15.00 $0.34 $15.32 $15.31 $15.43 $15.06 $15
Slide 9: Portfolio Growth Since IPO
Portfolio Growth Since IPO $1,200 $1,146 mm $1,100 $1,000 $900 Dollars in millions $800 $700 $600 $500 $400 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 9
Slide 10: Portfolio Highlights as of December 31, 2014
Portfolio Highlights as of December 31, 2014 Investment by Industry Lessors of Real Estate 1.2% Print Publishers 1.1% $1.1 billion portfolio fair value Other Telecom 1.2% Computer Equipment Mfg 1.0% 10.9% average effective yield Synthetic Fibers & Filaments Mfg 1.2% Other 6.1% Software Publisher
Slide 11: Financial Highlights
Financial Highlights ($ per share) Q4 2014 Q3 2014 Q2 2014 Q1 2014 Q4 2013 Net investment income before taxes (1) $ 0.50 $ 0.47 $ 0.50 $ 0.48 $ 0.50 Excise taxes (0.02) - - - (0.03) Incentive compensation on NII (0.10) (0.09) (0.10) (0.10) (0.09) Net investment income, after incentive(1) 0.38 0.38 0
Slide 12: Portfolio Highlights
Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q4 2014 Q3 2014 Q2 2014 Q1 2014 Q4 2013 Senior secured debt $ 1,113,537 $ 1,041,130 $ 864,188 $ 773,780 $ 708,726 Senior unsecured debt - - - 7,560 7,632 Mezzanine/subordinated debt 56 15 1,007 1,402 10,157 Equity 32,943 33,65
Slide 13: Quarterly Balance Sheets
Quarterly Balance Sheets 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 (in thousands, except per share data) (audited) (unaudited) (unaudited) (unaudited) (audited) ASSETS Investments at fair value $ 1,146,536 $ 1,074,797 $ 894,669 $ 815,658 $ 766,263 Cash and cash equivalents 27,269 24,144 29
Slide 14: Quarterly Operating Results
Quarterly Operating Results For the Three Months Ended (Unaudited; dollar amounts in thousands, except per share data) 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Investment Income Interest income $ 30,623 $ 26,643 $ 23,925 $ 19,735 $ 20,226 Dividend income - - - 1,969 - Lease income 325 337
Slide 15: 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 16: Diversified Sources of Funding
Diversified Sources of Funding Funding Sources Pricing Maturity $134m Preferred Interests L + 0.85% July 2016 $116m Operating Company Credit Facility L + 2.50% July 2016 TCPC $250m TCPC Funding I Credit Facility1 L + 2.50%2 May 2017 $75m SBA Leverage Program3 3.02%4 2014/2015 $108m Convert
Slide 17: 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 17