BlackRock TCP Capital Corp. Announces First Quarter 2025 Financial Results Including Net Investment Income of $0.38 Per Share; Declares a Second Quarter Regular Dividend of $0.25 Per Share and a Special Dividend of $0.04 Per Share
FINANCIAL HIGHLIGHTS
-
On a GAAP basis, net investment income for the quarter ended March 31, 2025 was
$32.2 million $0.38 $0.25 $0.04 $30.7 million $0.36 -
Net asset value per share was
$9.18 $9.23 -
Net increase in net assets from operations on a GAAP basis for the quarter ended March 31, 2025 was
$20.9 million $0.25 $38.6 million $0.45 -
Total investment acquisitions and dispositions during the quarter ended March 31, 2025 were approximately
$66.0 million $84.9 million - As of March 31, 2025, net leverage was 1.13x compared to 1.14x at December 31, 2024.
-
As of March 31, 2025, debt investments on non-accrual status represented
4.4% of the portfolio at fair value and12.6% at cost, compared to5.6% of the portfolio at fair value and14.4% at cost as of December 31, 2024. -
For the three months ended March 31, 2025, the Advisor waived
$1.8 million $0.02 -
On May 8, 2025, our Board of Directors declared a second quarter regular dividend of
$0.25 $0.04
“We made meaningful progress in strengthening our portfolio in the first quarter, and we are pleased to see signs of portfolio stabilization. Investments on non-accrual loans declined to
“Although the impact of global macroeconomic factors remains uncertain, we have carefully reviewed our investments and estimate that only a mid-single digit percentage of our portfolio at fair market value will be directly impacted by tariffs. We believe we have the right plan to position the portfolio to perform well in all market environments and are taking a highly disciplined approach to making investments that are aligned with our stated strategy.”
SELECTED FINANCIAL HIGHLIGHTS(1)
|
Three months ended March 31, |
|
||||||||||||||
|
2025 |
|
|
2024 |
|
|||||||||||
|
Amount |
|
|
Per
|
|
|
Amount |
|
|
Per
|
|
|||||
Net investment income |
$ |
32,202,669 |
|
|
|
0.38 |
|
|
$ |
28,261,273 |
|
|
|
0.46 |
|
|
Less: Purchase accounting discount amortization |
|
1,502,373 |
|
|
|
0.02 |
|
|
|
539,491 |
|
|
|
0.01 |
|
|
Adjusted net investment income |
$ |
30,700,296 |
|
|
|
0.36 |
|
|
$ |
27,721,782 |
|
|
|
0.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net realized and unrealized gain (loss) |
$ |
(11,308,081 |
) |
|
|
(0.13 |
) |
|
$ |
(23,204,132 |
) |
|
|
(0.37 |
) |
|
Less: Realized gain (loss) due to the allocation of purchase discount |
|
2,685,479 |
|
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
|
Less: Net change in unrealized appreciation (depreciation) due to the allocation of purchase discount |
|
(4,187,852 |
) |
|
|
(0.05 |
) |
|
|
21,347,357 |
|
|
|
0.34 |
|
|
Adjusted net realized and unrealized gain (loss) |
$ |
(9,805,708 |
) |
|
|
(0.11 |
) |
|
$ |
(44,551,489 |
) |
|
|
(0.71 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net increase (decrease) in net assets resulting from operations |
$ |
20,894,588 |
|
|
|
0.25 |
|
|
$ |
5,057,141 |
|
|
|
0.08 |
|
|
Less: Purchase accounting discount amortization |
|
1,502,373 |
|
|
|
0.02 |
|
|
|
539,491 |
|
|
|
0.01 |
|
|
Less: Realized gain (loss) due to the allocation of purchase discount |
|
2,685,479 |
|
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
|
Less: Net change in unrealized appreciation (depreciation) due to the allocation of purchase discount |
|
(4,187,852 |
) |
|
|
(0.05 |
) |
|
|
21,347,357 |
|
|
|
0.34 |
|
|
Adjusted net increase (decrease) in assets resulting from operations |
$ |
20,894,588 |
|
|
|
0.25 |
|
|
$ |
(16,829,707 |
) |
|
|
(0.27 |
) |
|
(1) On March 18, 2024, the Company completed its previously announced merger with BlackRock Capital Investment Corporation ("Merger"). The Merger has been accounted for as an asset acquisition of BlackRock Capital Investment Corporation ("BCIC") by the Company in accordance with the asset acquisition method of accounting as detailed in ASC 805-50 ("ASC 805"), Business Combinations-Related Issues. The Company determined the fair value of the shares of the Company's common stock that were issued to former BCIC shareholders pursuant to the Merger Agreement plus transaction costs to be the consideration paid in connection with the Merger under ASC 805. The consideration paid to BCIC shareholders was less than the aggregate fair values of the BCIC assets acquired and liabilities assumed, which resulted in a purchase discount (the “purchase discount”). The consideration paid was allocated to the individual BCIC assets acquired and liabilities assumed based on the relative fair values of net identifiable assets acquired other than “non-qualifying” assets and liabilities (for example, cash) and did not give rise to goodwill. As a result, the purchase discount was allocated to the cost basis of the BCIC investments acquired by the Company on a pro-rata basis based on their relative fair values as of the effective time of the Merger. Immediately following the Merger, the investments were marked to their respective fair values in accordance with ASC 820 which resulted in immediate recognition of net unrealized appreciation in the Consolidated Statement of Operations as a result of the Merger. The purchase discount allocated to the BCIC debt investments acquired will amortize over the remaining life of each respective debt investment through interest income, with a corresponding adjustment recorded to unrealized appreciation or depreciation on such investment acquired through its ultimate disposition. The purchase discount allocated to BCIC equity investments acquired will not amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, the Company may recognize a realized gain or loss with a corresponding reversal of the unrealized appreciation on disposition of such equity investments acquired.
As a supplement to the Company’s reported GAAP financial measures, we have provided the following non-GAAP financial measures that we believe are useful:
- “Adjusted net investment income” – excludes the amortization of purchase accounting discount from net investment income calculated in accordance with GAAP;
- “Adjusted net realized and unrealized gain (loss)” – excludes the unrealized appreciation resulting from the purchase discount and the corresponding reversal of the unrealized appreciation from the amortization of the purchase discount from the determination of net realized and unrealized gain (loss) determined in accordance with GAAP; and
- “Adjusted net increase (decrease) in net assets resulting from operations” – calculates net increase (decrease) in net assets resulting from operations based on Adjusted net investment income and Adjusted net realized and unrealized gain (loss).
We believe that the adjustment to exclude the full effect of purchase discount accounting under ASC 805 from these financial measures is meaningful because of the potential impact on the comparability of these financial measures that we and investors use to assess our financial condition and results of operations period over period. Although these non-GAAP financial measures are intended to enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The aforementioned non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies.
PORTFOLIO AND INVESTMENT ACTIVITY
As of March 31, 2025, our consolidated investment portfolio consisted of debt and equity positions in 146 portfolio companies with a total fair value of approximately
As of March 31, 2025, the weighted average annual effective yield of our debt portfolio was approximately
During the three months ended March 31, 2025, we invested approximately
As of March 31, 2025, total assets were
(1) |
Weighted average annual effective yield includes amortization of deferred debt origination and accretion of original issue discount, but excludes market discount and any prepayment and make-whole fee income. The weighted average effective yield on our debt portfolio excludes non-accrual and non-income producing loans. |
||
CONSOLIDATED RESULTS OF OPERATIONS
Total investment income for the three months ended March 31, 2025 was approximately
Total operating expenses for the three months ended March 31, 2025 were approximately
Net investment income for the three months ended March 31, 2025 was approximately
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2025, available liquidity was approximately
The combined weighted-average interest rate on debt outstanding at March 31, 2025 was
Total debt outstanding at March 31, 2025, including debt assumed as a result of the Merger, was as follows:
Debt, net of unamortized issuance costs |
|
Maturity |
|
Rate |
|
|
Carrying
|
|
|
Available |
|
|
Total
|
|
|
|||
Operating Facility |
|
2029 |
|
SOFR+ |
(2) |
|
$ |
120,000,000 |
|
|
$ |
180,000,000 |
|
|
$ |
300,000,000 |
|
(3) |
Funding Facility II |
|
2027 |
|
SOFR+ |
(4) |
|
|
100,000,000 |
|
|
|
100,000,000 |
|
|
|
200,000,000 |
|
(5) |
Merger Sub Facility(6) |
|
2028 |
|
SOFR+ |
(7) |
|
|
25,000,000 |
|
|
|
240,000,000 |
|
|
|
265,000,000 |
|
(8) |
SBA Debentures |
|
2025−2031 |
|
|
(9) |
|
|
122,000,000 |
|
|
|
10,000,000 |
|
|
|
132,000,000 |
|
|
2025 Notes ( |
|
2025 |
|
Fixed/Variable |
(10) |
|
|
92,000,000 |
|
|
|
— |
|
|
|
92,000,000 |
|
|
2026 Notes ( |
|
2026 |
|
|
|
|
|
325,298,791 |
|
|
|
— |
|
|
|
325,298,791 |
|
|
2029 Notes ( |
|
2029 |
|
|
|
|
|
321,904,509 |
|
|
|
— |
|
|
|
321,904,509 |
|
|
Total leverage |
|
|
|
|
|
|
|
1,106,203,300 |
|
|
$ |
530,000,000 |
|
|
$ |
1,636,203,300 |
|
|
Unamortized issuance costs |
|
|
|
|
|
|
|
(7,299,104 |
) |
|
|
|
|
|
|
|
||
Debt, net of unamortized issuance costs |
|
|
|
|
|
|
$ |
1,098,904,196 |
|
|
|
|
|
|
|
|
||
(1) |
Except for the 2026 Notes and 2029 Notes, all carrying values are the same as the principal amounts outstanding. |
||
(2) |
The outstanding amount was subject to a SOFR credit adjustment of |
||
(3) |
Operating Facility includes a |
||
(4) |
Subject to certain funding requirements and a SOFR credit adjustment of |
||
(5) |
Funding Facility II includes a |
||
(6) |
Debt assumed by the Company as a result of the Merger with BCIC. |
||
(7) |
The applicable margin for SOFR-based borrowings could be either |
||
(8) |
Merger Sub Facility includes a |
||
(9) |
Weighted-average interest rate, excluding fees of |
||
(10) |
The 2025 Notes consist of two tranches: |
||
On February 27, 2024, the Board of Directors approved a new dividend reinvestment plan (the “DRIP”) for the Company. The DRIP was effective as of, and will apply to the reinvestment of cash distributions with a record date after March 18, 2024. Under the DRIP, shareholders will automatically receive cash dividends and distributions unless they “opt in” to the DRIP and elect to have their dividends and distributions reinvested in additional shares of the Company’s common stock. Notwithstanding the foregoing, the former shareholders of BCIC that participated in the BCIC dividend reinvestment plan at the time of the Merger have been automatically enrolled in the Company’s DRIP and will have their shares reinvested in additional shares of the Company’s common stock on future distributions, unless they “opt out” of the DRIP. For the three months ended March 31, 2025, approximately
The Company Repurchase Plan was re-approved on April 24, 2024, to be in effect through the earlier of April 30, 2025, unless further extended or terminated by the Company’s Board of Directors, or such time as the approved
The following table summarizes the total shares repurchased and amounts paid by the Company under the Company Repurchase Plan, including broker fees, for the first quarter ended March 31, 2025:
|
|
Shares Repurchased |
|
|
Price Per Share* |
|
|
Total Cost |
|
|||
Company Repurchase Plan |
|
|
3,150 |
|
|
$ |
8.54 |
|
|
$ |
26,915 |
|
RECENT DEVELOPMENTS
From April 1, 2025 through May 7, 2025, the Company has invested approximately
On April 29, 2025, the Company’s Board of Directors re-approved the Company Repurchase Plan, to be in effect through the earlier of April 30, 2026, unless further extended or terminated by the Company's Board of Directors, or such time as the approved
From April 1, 2025 through May 7, 2025, the Company repurchased 39,500 shares at a weighted average price of
On May 2, 2025, SVCP entered into Amendment No. 8 and Limited Waiver to the Operating Facility (the “Operating Facility Amendment”). The Operating Facility Amendment (i) clarified that, for purposes of the Operating Facility, “control” does not include “negative” control or “blocking” rights, and (ii) provided that the administrative agent and the lenders under the Operating Facility waived any default or event of default under the Operating Facility resulting from the failure of SVCP to cause TCPC Holdings Blocker, LLC, a
On May 8, 2025, our Board of Directors declared a second quarter regular dividend of
CONFERENCE CALL AND WEBCAST
BlackRock TCP Capital Corp. will host a conference call on Thursday May 8, 2025 at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) to discuss its financial results. All interested parties are invited to participate in the conference call by dialing (833) 470-1428; international callers should dial (404) 975-4839. All participants should reference the access code 912158. For a slide presentation that we intend to refer to on the earnings conference call, please visit the Investor Relations section of our website (www.tcpcapital.com) and click on the First Quarter 2025 Investor Presentation under Events and Presentations. The conference call will be webcast simultaneously in the investor relations section of our website at http://investors.tcpcapital.com/. An archived replay of the call will be available approximately two hours after the live call, through Thursday, May 15, 2025. For the replay, please visit https://investors.tcpcapital.com/events-and-presentations or dial (866) 813-9403. For international replay, please dial (929) 458-6194. For all replays, please reference access code 832365.
BlackRock TCP Capital Corp. Consolidated Statements of Assets and Liabilities |
||||||||
|
|
March 31, 2025 |
|
|
December 31, 2024 |
|
||
|
|
(unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Investments, at fair value: |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments (cost of |
|
$ |
1,535,379,600 |
|
|
$ |
1,565,603,753 |
|
Non-controlled, affiliated investments (cost of |
|
|
51,374,907 |
|
|
|
49,444,695 |
|
Controlled investments (cost of |
|
|
182,519,261 |
|
|
|
179,709,888 |
|
Total investments (cost of |
|
|
1,769,273,768 |
|
|
|
1,794,758,336 |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
99,114,852 |
|
|
|
91,589,702 |
|
Interest, dividends and fees receivable |
|
|
23,283,768 |
|
|
|
22,784,825 |
|
Deferred debt issuance costs |
|
|
5,604,687 |
|
|
|
6,235,009 |
|
Due from broker |
|
|
785,840 |
|
|
|
817,969 |
|
Receivable for investments sold |
|
|
— |
|
|
|
4,487,697 |
|
Prepaid expenses and other assets |
|
|
840,644 |
|
|
|
2,357,825 |
|
Total assets |
|
|
1,898,903,559 |
|
|
|
1,923,031,363 |
|
|
|
|
|
|
|
|
||
Liabilities |
|
|
|
|
|
|
||
Debt (net of deferred issuance costs of |
|
|
1,098,904,196 |
|
|
|
1,118,340,225 |
|
Interest and debt related payables |
|
|
10,829,846 |
|
|
|
8,306,126 |
|
Management fees payable |
|
|
3,487,137 |
|
|
|
5,750,971 |
|
Interest Rate Swap, at fair value |
|
|
740,526 |
|
|
|
731,830 |
|
Reimbursements due to the Advisor |
|
|
514,342 |
|
|
|
932,224 |
|
Payable for investments purchased |
|
|
219,091 |
|
|
|
99,494 |
|
Accrued expenses and other liabilities |
|
|
2,889,497 |
|
|
|
3,746,826 |
|
Total liabilities |
|
|
1,117,584,635 |
|
|
|
1,137,907,696 |
|
|
|
|
|
|
|
|
||
Net assets |
|
$ |
781,318,924 |
|
|
$ |
785,123,667 |
|
|
|
|
|
|
|
|
||
Composition of net assets applicable to common shareholders |
|
|
|
|
|
|
||
Common stock, |
|
$ |
85,077 |
|
|
$ |
85,080 |
|
Paid-in capital in excess of par |
|
|
1,731,030,547 |
|
|
|
1,731,057,459 |
|
Distributable earnings (loss) |
|
|
(949,796,700 |
) |
|
|
(946,018,872 |
) |
Total net assets |
|
|
781,318,924 |
|
|
|
785,123,667 |
|
Total liabilities and net assets |
|
$ |
1,898,903,559 |
|
|
$ |
1,923,031,363 |
|
|
|
|
|
|
|
|
||
Net assets per share |
|
$ |
9.18 |
|
|
$ |
9.23 |
|
BlackRock TCP Capital Corp. Consolidated Statements of Operations |
||||||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Investment income |
|
(unaudited) |
|
|
(unaudited) |
|
||
Interest income (excluding PIK): |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
$ |
43,456,737 |
|
|
$ |
48,646,193 |
|
Non-controlled, affiliated investments |
|
|
337,999 |
|
|
|
347,635 |
|
Controlled investments |
|
|
2,309,269 |
|
|
|
2,859,080 |
|
PIK interest income: |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
|
5,788,915 |
|
|
|
2,405,677 |
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
92,675 |
|
Controlled investments |
|
|
681,561 |
|
|
|
349,969 |
|
Dividend income: |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
|
435,951 |
|
|
|
312,324 |
|
Non-controlled, affiliated investments |
|
|
1,009,057 |
|
|
|
713,703 |
|
Controlled investments |
|
|
1,868,860 |
|
|
|
— |
|
Other income: |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
|
566 |
|
|
|
2,053 |
|
Total investment income |
|
|
55,888,915 |
|
|
|
55,729,309 |
|
|
|
|
|
|
|
|
||
Operating expenses |
|
|
|
|
|
|
||
Interest and other debt expenses |
|
|
17,084,633 |
|
|
|
13,230,224 |
|
Management fees |
|
|
5,483,844 |
|
|
|
5,819,505 |
|
Professional fees |
|
|
867,447 |
|
|
|
919,676 |
|
Administrative expenses |
|
|
641,464 |
|
|
|
561,003 |
|
Insurance expense |
|
|
218,463 |
|
|
|
145,113 |
|
Director fees |
|
|
192,500 |
|
|
|
216,719 |
|
Custody fees |
|
|
93,185 |
|
|
|
89,920 |
|
Incentive fees |
|
|
— |
|
|
|
5,880,378 |
|
Other operating expenses |
|
|
932,658 |
|
|
|
605,498 |
|
Total operating expenses, before management fee waiver |
|
|
25,514,194 |
|
|
|
27,468,036 |
|
Management fee waiver |
|
|
(1,827,948 |
) |
|
|
— |
|
Total operating expenses, after management fee waiver |
|
|
23,686,246 |
|
|
|
27,468,036 |
|
|
|
|
|
|
|
|
||
Net investment income |
|
|
32,202,669 |
|
|
|
28,261,273 |
|
|
|
|
|
|
|
|
||
Realized and unrealized gain (loss) on investments and foreign currency |
|
|
|
|
|
|
||
Net realized gain (loss): |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
|
(40,917,338 |
) |
|
|
(168,077 |
) |
Net realized gain (loss) |
|
|
(40,917,338 |
) |
|
|
(168,077 |
) |
|
|
|
|
|
|
|
||
Net change in unrealized appreciation (depreciation) (1): |
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments |
|
|
26,554,993 |
|
|
|
(6,152,059 |
) |
Non-controlled, affiliated investments |
|
|
921,158 |
|
|
|
(14,378,028 |
) |
Controlled investments |
|
|
2,124,335 |
|
|
|
(2,512,907 |
) |
Interest Rate Swap |
|
|
8,771 |
|
|
|
6,939 |
|
Net change in unrealized appreciation (depreciation) |
|
|
29,609,257 |
|
|
|
(23,036,055 |
) |
|
|
|
|
|
|
|
||
Net realized and unrealized gain (loss) |
|
|
(11,308,081 |
) |
|
|
(23,204,132 |
) |
|
|
|
|
|
|
|
||
Net increase (decrease) in net assets resulting from operations |
|
$ |
20,894,588 |
|
|
$ |
5,057,141 |
|
|
|
|
|
|
|
|
||
Basic and diluted earnings (loss) per share |
|
$ |
0.25 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
||
Basic and diluted weighted average common shares outstanding |
|
|
85,077,619 |
|
|
|
62,047,859 |
|
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ABOUT BLACKROCK TCP CAPITAL CORP.
BlackRock TCP Capital Corp. (NASDAQ: TCPC) is a specialty finance company focused on direct lending to middle-market companies as well as small businesses. TCPC lends primarily to companies with established market positions, strong regional or national operations, differentiated products and services and sustainable competitive advantages, investing across industries in which it has significant knowledge and expertise. TCPC’s investment objective is to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. TCPC is a publicly-traded business development company, or BDC, regulated under the Investment Company Act of 1940 and is externally managed by its advisor, a wholly-owned, indirect subsidiary of BlackRock, Inc. For more information, visit www.tcpcapital.com.
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 filings with the Securities and Exchange Commission (“SEC”). Copies are available on the SEC’s website at www.sec.gov and the company’s website at www.tcpcapital.com. Prospective investors should read these materials carefully before investing.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation, changes in general economic conditions or changes in the conditions of the industries in which the company makes investments, risks associated with the availability and terms of financing, changes in interest rates, availability of transactions, and regulatory changes. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in the “Risk Factors” section of the company’s Form 10-K for the year ended December 31, 2024, and the company’s subsequent periodic filings with the SEC. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) the ability to realize the anticipated benefits of the Merger, including the expected accretion to net investment income and the elimination or reduction of certain expenses and costs due to the Merger; (ii) risks related to diverting management’s attention from ongoing business operations; (iii) risks related to the retention of the personnel of TCPC’s advisor; (iv) changes in the economy, financial markets and political environment; (v) risks associated with possible disruption in the operations of TCPC or the economy generally due to terrorism, war or other geopolitical conflict (including the current conflict between
SOURCE:
BlackRock TCP Capital Corp.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250508089105/en/
BlackRock TCP Capital Corp.
Michaela Murray
(310) 566-1094
investor.relations@tcpcapital.com
Source: BlackRock TCP Capital Corp.
