Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q1 2020 Earnings Presentation
19 slides from Blackrock Tcp Capital's earnings presentation, May 12, 2020
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation March 31, 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: Response to COVID-19
BlackRock TCP Capital Corp - Response to COVID-19 As of March 31, 2020 Our Team Our Portfolio Our Firm Leveraging our team’s more than 20 Thorough and ongoing analysis of Business continuity procedures fully years’ experience investing across every company in our portfolio to operational – employees
Slide 4: First Quarter 2020 Financial and Portfolio Overview
First Quarter 2020 Financial and Portfolio Overview As of March 31, 2020 ▪ Total portfolio fair value of $1.6 billion diversified across 108 portfolio companies Diversified ▪ Top five portfolio companies just 16% of the total portfolio Portfolio with an Emphasis on ▪ 93% invested in senior secured d
Slide 5: 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 Emphasis on Non-Cyclical Businesses Industry Diversification(1) ▪ Robust downside analysis performed at Electrical Equipment 1.0% underwriting, wi
Slide 6: Diversified Portfolio: Conservatively Positioned
Diversified Portfolio: Conservatively Positioned Diversified Income Contribution $1.6 billion portfolio fair value 55 93% of portfolio # of portfolio companies is senior secured debt contributing (2) 27 10.3% weighted average effective yield on debt portfolio(1) 3 4 Majority of our portfolio compani
Slide 7: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet Predominantly First-lien, Diverse Liability Structure Floating Rate Asset Portfolio Seniority(1) SBA First Lien 83% Debentures 14% Second Lien 16% Junior 1% Unsecured Debt Credit 53% Facilities Fixed / Floating(1) 33% Floating Rate 92% Fixed Rate 8% (1) As a pe
Slide 8: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Fitch and Moody’s As of March 31, 2020, $ in millions Source Capacity Drawn Amount Available Pricing Maturity SVCP Facility $ 270.0 $ 108.4 $ 161.6 L + 2.00% (4) May-23 (8) TCPC Funding Facility 300.0 215.0 85.0 L + 2.00% (5) May-23(9)
Slide 9: Well-Covered and Consistent Dividend
Well-Covered and Consistent Dividend Net investment income of $0.38 per share Declared Q2 2020 dividend of $0.36 in Q1 2020 per share Out-earned quarterly dividend of $0.36 per share paid Payable on June 30, 2020 to holders of record on March 31, 2020 as of June 16, 2020 Dividend covered in all 32 q
Slide 10: 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 135 basis points since 2.50 12/31/2018 (from 2.80% to 1.45% as of 3/31/2020) 2.00 1.50 ▪ The cumulative decline in LIBOR over this period has 1.00 resulted in a total impact to net invest
Slide 11: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s $6.47 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 ▪ $103 billi
Slide 12: Breadth and Depth of BlackRock's Global Credit Platform
Breadth and Depth of BlackRock’s Global Credit Platform Global Credit AUM: $103 billion(1) Leveraged Finance Multi-Strategy Credit Private Credit ▪ High Yield ▪ Pan-Credit Solutions ▪ Direct Lending ▪ Bank Loans ▪ Hedge Fund Strategies ▪ Opportunistic Credit ▪ CLOs ▪ Specialty Finance BlackRock Inve
Slide 13: Well Positioned to Manage Through the Cycle
Well Positioned to Manage Through the Cycle Late Cycle Downturn Early Cycle Mid Cycle Tight Financing Easy Financing Excess Capacity Excess Demand Strategy attributes are well-positioned to withstand a downturn ✓ Senior secured, top of the capital structure ✓ Significant cushion below investment (ge
Slide 14: Investor Friendly Advisory Fee Structure
Investor Friendly Advisory Fee Structure BlackRock TCP Capital Corp. Average Externally Managed BDC(1) ◼ 1.5% up to 1.0x debt to equity; 1.0% above ◼ 1.50% - 1.75% on gross assets (up to 1.0x Base 1.0x debt to equity. Based on gross assets debt to equity; 1.0% above 1.0x debt to (less cash and cash
Slide 15: Quarterly Operating Results
Quarterly Operating Results 2020 2019 Unaudited ($ in thousands, except per share amounts) Q1 Q4 Q3 Q2 Q1 Investment income Interest income $ 40,632 $ 47,123 $ 49,854 $ 47,631 $ 46,977 Lease income 38 74 74 74 74 Dividend income 428 605 914 392 480 Other income 153 8 798 78 9 Total investment income
Slide 16: Financial Highlights
Financial Highlights 2020 2019 Unaudited Unaudited ($ per share) Q1 Q4 Q3 Q2 Q1 Net investment income 0.38 0.38 0.43 0.41 0.40 Net realized & unrealized gains (losses) (1.56) (0.40) (0.12) (0.59) 0.01 Net increase (decrease) in net assets from operations (1.18) (0.02) 0.31 (0.18) 0.41 Dividend paid
Slide 17: Portfolio Highlights
Portfolio Highlights 2020 2019 Asset Mix of the Investment Portfolio Q1 Q4 Q3 Q2 Q1 (in thousands) Senior secured debt $ 1,503,280 $ 1,513,909 $ 1,555,934 $ 1,558,763 $ 1,476,326 Junior debt 18,755 21,285 20,768 50,331 43,722 Equity 103,884 114,313 104,573 80,088 84,780 Total investments $ 1,625,919
Slide 18: Quarterly Balance Sheets
Quarterly Balance Sheets 2020 2019 (in thousands, except per share data) Unaudited Audited Unaudited Unaudited Unaudited ASSETS Q1 Q4 Q3 Q2 Q1 Investments at fair value $ 1,625,919 $ 1,649,507 $ 1,681,275 $ 1,689,182 $ 1,604,828 Cash and cash equivalents 8,575 44,849 80,069 21,858 26,752 Accrued int
Slide 19: 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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