Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — Q4 2019 Earnings Presentation
21 slides from Blackrock Tcp Capital's earnings presentation, Feb 26, 2020
Slide 1: BlackRock TCP Capital Corp. Investor Presentation
BlackRock TCP Capital Corp. Investor Presentation December 31, 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 December 31, 2019 Who we are What we do How we do it $1.6 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 s
Slide 4: 2019 Highlights
2019 Highlights As of December 31, 2019 ▪ Deployed $700 million gross, $104 million net of dispositions, of which 94% was in senior Disciplined secured debt Deployment ▪ Diverse portfolio invested in 105 companies across a wide range of industries, with an average portfolio position of just $15.7 mi
Slide 5: Fourth Quarter 2019 Financial and Portfolio Highlights
Fourth Quarter 2019 Financial and Portfolio Highlights As of December 31, 2019 ▪ Net investment income of $0.38; dividend of $0.36 per share Dividend Coverage ▪ 31 consecutive quarters of dividend coverage Disciplined ▪ Gross deployment of $141 million; net dispositions of $11 million Deployment ▪ I
Slide 6: Well-Covered and Consistent Dividend
Well-Covered and Consistent Dividend Net investment income of $0.38 per share Declared Q1 2020 dividend of $0.36 in Q4 2019 per share Out-earned quarterly dividend of $0.36 per share paid Payable on March 31, 2020 to holders of record on December 31, 2019 as of March 17, 2020 Dividend covered in all
Slide 7: Conservatively Positioned and Diversified Portfolio
Conservatively Positioned and Diversified Portfolio Majority of our portfolio 10.3% weighted $1.6 billion 92% 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 8: Strategically Positioned Balance Sheet
Strategically Positioned Balance Sheet Predominantly First-lien, Floating Rate Asset Portfolio Liabilities Primarily Fixed Rate 1% 8% 18% 29% First Lien Floating Rate Second Lien Fixed Rate Junior Fixed Rate Floating Rate 71% 81% 92% Annual impact on net income of changes in interest rates(1) Basis
Slide 9: Strong Track Record of Positive Performance
Strong Track Record of Positive Performance Book Value per Share and Dividends Paid As of Book Value per Share Cumulative Dividends Paid per Share (Post IPO) 12/31/2019: $26.00 $24.57 $24.00 $22.00 $20.00 $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 At IPO Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15
Slide 10: TCPC Outperformance
TCPC Outperformance Outperformed the Wells Fargo BDC Index by 23% since our IPO(1) As of 1/31/2020 TCPC: 102.3% WFBDC: 83.2% (1) Assumes a fixed investment on April 6, 2012 in BlackRock TCP Capital Corp. and the Wells Fargo Business Development Company Index. Assumes all dividends are reinvested on
Slide 11: Competitive Advantages of BlackRock
Competitive Advantages of BlackRock BlackRock’s $7.4 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 ▪ $115 bil
Slide 12: Breadth and Depth of the BlackRock's Global Credit Platform
Breadth and Depth of the BlackRock’s Global Credit Platform Global Credit AUM: $115 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 13: 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 14: 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 15: 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 16: Diversified Sources of Funding
Diversified Sources of Funding TCPC is investment grade rated by Standard & Poor’s and Moody’s As of December 31, 2019, $ in millions Source Capacity Drawn Amount Available Pricing Maturity SVCP Facility $ 270.0 $ 108.5 $ 161.5 L + 2.00% (4) May-23 TCPC Funding Facility 300.0 158.0 142.0 L + 2.00% (
Slide 17: Quarterly Operating Results
Quarterly Operating Results 2019 2018 Unaudited ($ in thousands, except per share amounts) Q4 Q3 Q2 Q1 Q4 Investment income Interest income $ 47,123 $ 49,854 $ 47,631 $ 46,977 $ 47,657 Lease income 74 74 74 74 74 Dividend income 605 914 392 480 646 Other income 8 798 78 9 6 Total investment income 4
Slide 18: Financial Highlights
Financial Highlights 2019 2018 Unaudited Unaudited ($ per share) Q4 Q3 Q2 Q1 Q4 Net investment income 0.38 0.43 0.41 0.40 0.40 Net realized & unrealized gains (losses) (0.40) (0.12) (0.59) 0.01 (0.42) Net increase in net assets from operations (0.02) 0.31 (0.18) 0.41 (0.02) Dividend paid (0.36) (0.3
Slide 19: Portfolio Highlights
Portfolio Highlights 2019 2018 Asset Mix of the Investment Portfolio Q4 Q3 Q2 Q1 Q4 (in thousands) Senior secured debt $ 1,513,909 $ 1,555,934 $ 1,558,763 $ 1,476,326 $ 1,471,583 Junior debt 21,285 20,768 50,331 43,722 43,526 Equity 114,313 104,573 80,088 84,780 82,177 Total investments $ 1,649,507
Slide 20: Quarterly Balance Sheets
Quarterly Balance Sheets 2019 2018 (in thousands, except per share data) Audited Unaudited Unaudited Unaudited Audited ASSETS Q4 Q3 Q2 Q1 Q4 Investments at fair value $ 1,649,507 $ 1,681,275 $ 1,689,182 $ 1,604,828 $ 1,597,286 Cash and cash equivalents 44,849 80,069 21,858 26,752 27,920 Accrued inte
Slide 21: 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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