Blackrock Tcp Capital Corp. · NASDAQ:TCPC
Blackrock Tcp Capital — TCP Capital — Q2 2016 Earnings Presentation
14 slides from Blackrock Tcp Capital's earnings presentation, Aug 9, 2016
Slide 1: TCP Capital Corp. Investor Presentation, Quarter Ended June 30, 2016
TCP Capital Corp. Investor Presentation Quarter Ended June 30, 2016 © 2016 Tennenbaum Capital Partners, LLC. All Rights Reserved.
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) 9.1% current dividend yield(2) Investment We seek to generate high total returns through current income and Objective capital appreciation, with an em
Slide 4: Dividend Stability
Dividend Stability Net investment income(1) of $0.38 per share, out-earning dividend by $0.02 Quarterly dividend of $0.36 per share paid on June 30, 2016 Declared Q3 2016 regular quarterly dividend of $0.36 per share Payable on September 30, 2016 to holders of record as of September 16, 2016
Slide 5: Strong Track Record of Positive Performance
Strong Track Record of Positive Performance Book Value per Share and Dividends Paid $22.00 $21.06 $21.00 $20.62 $20.34 $20.38 $19.98 $20.00 $19.55 $19.18 $19.17 $18.70 $19.00 $18.30 $17.80 $18.00 $6.32 $5.24 $5.96 $17.27 $4.88 $5.60 $3.75 $4.52 $17.00 $16.79 $3.39 $4.16 $16.40 $2.98 $2.62 $15.80 $2.
Slide 6: Portfolio Highlights as of June 30, 2016
Portfolio Highlights as of June 30, 2016 $1.2 billion portfolio fair value 96% of portfolio is senior secured debt Investment by Industry 11.0% weighted average effective yield on 80% of debt portfolio is floating rate debt portfolio(1) (1) Weighted average annual effective yield includes am
Slide 7: Conservatively Positioned Portfolio
Conservatively Positioned Portfolio As of June 30, 2016 Portfolio by Asset Type Debt Portfolio by Interest Type Leverage by Interest Type Mezzanine / Equity 4% Junior Debt <1% Fixed rate 32% Fixed Rate 20% Floating Rate 80% Floating rate 68% Senior Secured Debt 96% Positive annual impact on net inco
Slide 8: Portfolio Highlights
Portfolio Highlights Asset Mix of the Investment Portfolio (in thousands) Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Senior secured debt $ 1,176,581 $ 1,173,244 $ 1,129,571 $ 1,227,621 $ 1,170,828 Mezzanine/subordinated debt - 65 965 57 57 Equity 54,920 53,836 52,384 41,483 41,090 Total investments 1,2
Slide 9: Quarterly Operating Results
Quarterly Operating Results Three Months Ended (Unaudited; dollar amounts in thousands, except per share data) 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 Investment income Interest income $ 34,763 $ 32,874 $ 39,159 $ 33,813 $ 37,485 Lease income 650 776 375 355 331 Other income 182 939 82 1,
Slide 10: Financial Highlights
Financial Highlights ($ per share) Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 (1) Net investment income before taxes $ 0.47 $ 0.47 $ 0.55 $ 0.50 $ 0.55 Excise taxes - - (0.02) - - Incentive compensation on NII (0.09) (0.09) (0.11) (0.10) (0.11) (1) Net investment income, after incentive 0.38 0.38 0.43
Slide 11: Quarterly Balance Sheets
Quarterly Balance Sheets 6/30/2016 3/31/2016 12/31/2015 9/30/2015 6/30/2015 (in thousands, except per share data) (unaudited) (unaudited) (audited) (unaudited) (unaudited) ASSETS Investments at fair value $ 1,231,501 $ 1,227,145 $ 1,182,920 $ 1,269,161 $ 1,211,975 Cash and cash equivalents 38,314 22
Slide 12: 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 2.00% quarterly return on NAV 2.00% quarterly return on NAV Capital Gains: 20
Slide 13: Diversified Sources of Funding
Diversified Sources of Funding As of June 30, 2016 Source Capacity Drawn Amount Available Pricing Maturity Current leverage: ■ SVCP Facility ■ Revolver $116.0mm $78.0mm $38.0mm L + 1.75% (1) Jul-18 ■ Term Loan $100.5mm $100.5mm - L + 1.75% (1) Jul-18 ■ Convertible Senior Unsecured Notes $106.3mm (2)
Slide 14: 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 14