TriplePoint Venture Growth BDC Corp. Announces Second Quarter 2022 Financial Results
Achieves New Record for Portfolio Fair Value of
Declares Third Quarter 2022 Distribution of
Second Quarter 2022 Highlights
-
Signed a record level
of term sheets with venture growth stage companies at$803.6 million TriplePoint Capital LLC (“TPC”) and TPVG closed a record level of new debt commitments to venture growth stage companies;$259.9 million -
Funded
in debt investments to 20 portfolio companies with a$157.6 million 13.6% weighted average annualized portfolio yield at origination; -
Achieved a
14.5% weighted average annualized portfolio yield on total debt investments for the quarter; -
Earned net investment income of
, or$12.7 million per share;$0.41 -
Realized an
11.8% return on average equity, based on net investment income during the quarter; - TPVG portfolio company Grove Collaborative Holdings, Inc. closed its SPAC merger;
-
In April,
DBRS, Inc. reaffirmed TPVG’s investment grade rating, BBB Long-Term Issuer rating, with a stable trend outlook; -
13 portfolio companies raised an aggregate
of capital in private financing rounds during the quarter;$939.0 million -
Held debt investments in record level 56 portfolio companies, warrants in 95 portfolio companies and equity investments in 45 portfolio companies as of
June 30, 2022 ; - Debt investment portfolio weighted average investment ranking of 2.06 as of quarter’s end;
-
Net asset value of
, or$404.3 million per share, as of$13.01 June 30, 2022 ; - Ended the quarter with a 1.24x leverage ratio; and
-
Declared a third quarter distribution of
per share, payable on$0.36 September 30, 2022 ; bringing total declared distributions to per share since the Company’s initial public offering.$12.58
Year to Date 2022 Highlights
-
Earned net investment income of
, or$26.2 million per share;$0.84 -
Paid distributions of
per share;$0.72 -
Signed
of term sheets with venture growth stage companies at TPC and TPVG closed$1.5 billion of new debt commitments to venture growth stage companies;$385.7 million -
Funded
in debt investments to 26 portfolio companies with a$220.3 million 13.5% weighted average annualized portfolio yield at origination and funded in direct equity investments in private rounds of financing to eight portfolio companies;$3.1 million -
Achieved a
15.0% weighted average annualized portfolio yield on total debt investments; -
Raised
in aggregate principal amount from the private issuance of$125.0 million 5.00% fixed rate, institutional notes due 2027; -
In April,
DBRS, Inc. reaffirmed TPVG’s investment grade rating, BBB Long-Term Issuer rating, with a stable trend outlook; - Three TPVG portfolio companies completed SPAC mergers; and
-
Estimated undistributed taxable earnings from net investment income of
, or$14.3 million per share, as of$0.46 June 30, 2022 .
“Despite the volatile markets, the demand for our debt financing remains strong,” said
“Our portfolio companies further demonstrated their strong outlook during the first half of 2022, as they continued to complete capital raises, with
PORTFOLIO AND INVESTMENT ACTIVITY
During the three months ended
As of
Total portfolio investment activity for the three and six months ended
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
(in thousands) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Beginning portfolio at fair value |
|
$ |
806,447 |
|
|
$ |
633,696 |
|
|
$ |
865,340 |
|
|
$ |
633,779 |
|
New debt investments, net(a) |
|
|
154,391 |
|
|
|
74,444 |
|
|
|
215,850 |
|
|
|
130,087 |
|
Scheduled principal amortization |
|
|
(10,296 |
) |
|
|
(23,113 |
) |
|
|
(16,164 |
) |
|
|
(38,183 |
) |
Principal prepayments and early repayments |
|
|
(55,038 |
) |
|
|
(46,000 |
) |
|
|
(170,572 |
) |
|
|
(81,966 |
) |
Net amortization and accretion of premiums and discounts and end-of-term payments |
|
|
3,609 |
|
|
|
494 |
|
|
|
5,542 |
|
|
|
1,612 |
|
Payment-in-kind coupon |
|
|
1,352 |
|
|
|
2,232 |
|
|
|
2,935 |
|
|
|
4,213 |
|
New warrant investments |
|
|
2,145 |
|
|
|
2,246 |
|
|
|
2,960 |
|
|
|
3,867 |
|
New equity investments |
|
|
1,100 |
|
|
|
509 |
|
|
|
3,796 |
|
|
|
3,153 |
|
Proceeds from dispositions of investments |
|
|
- |
|
|
|
- |
|
|
|
(246 |
) |
|
|
(15,000 |
) |
Net realized gains (losses) on investments |
|
|
(670 |
) |
|
|
- |
|
|
|
(1,664 |
) |
|
|
(15,703 |
) |
Net change in unrealized gains (losses) on investments |
|
|
(26,322 |
) |
|
|
3,209 |
|
|
|
(31,059 |
) |
|
|
21,858 |
|
Ending portfolio at fair value |
|
$ |
876,718 |
|
|
$ |
647,717 |
|
|
$ |
876,718 |
|
|
$ |
647,717 |
|
_____________ |
||
(a) |
Debt balance is net of fees and discounts applied to the loan at origination. |
SIGNED TERM SHEETS
During the three months ended
UNFUNDED COMMITMENTS
As of
RESULTS OF OPERATIONS
Total investment and other income was
Operating expenses for the second quarter of 2022 were
For the second quarter of 2022, the Company recorded net investment income of
During the second quarter of 2022, the Company recognized net realized losses on investments of
Net change in unrealized losses on investments for the second quarter of 2022 was
The Company’s net decrease in net assets resulting from operations for the second quarter of 2022 was
CREDIT QUALITY
The Company maintains a credit watch list with portfolio companies placed into one of five credit categories, with Clear, or 1, being the highest rating and Red, or 5, being the lowest. Generally, all new loans receive an initial grade of White, or 2, unless the portfolio company’s credit quality meets the characteristics of another credit category.
As of
The following table shows the credit categories for the Company’s debt investments at fair value as of
|
|
|
|
|
||||||||||||||||
Credit Category (dollars in thousands) |
|
Fair Value |
|
|
Percentage of Total Debt Investments |
|
Number of Portfolio Companies |
|
Fair Value |
|
|
Percentage of Total Debt Investments |
|
Number of Portfolio Companies |
||||||
Clear (1) |
|
$ |
45,681 |
|
|
|
5.9 |
% |
|
3 |
|
$ |
166,091 |
|
|
|
21.9 |
% |
|
8 |
White (2) |
|
|
642,346 |
|
|
|
83.6 |
|
|
47 |
|
|
538,167 |
|
|
|
71.1 |
|
|
38 |
Yellow (3) |
|
|
69,364 |
|
|
|
9.0 |
|
|
4 |
|
|
41,628 |
|
|
|
5.5 |
|
|
2 |
Orange (4) |
|
|
9,152 |
|
|
|
1.2 |
|
|
1 |
|
|
11,336 |
|
|
|
1.5 |
|
|
1 |
Red (5) |
|
|
2,250 |
|
|
|
0.3 |
|
|
1 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
$ |
768,793 |
|
|
|
100.0 |
% |
|
56 |
|
$ |
757,222 |
|
|
|
100.0 |
% |
|
49 |
NET ASSET VALUE
As of
LIQUIDITY AND CAPITAL RESOURCES
As of
DISTRIBUTION
On
SUBSEQUENT EVENTS
Since
-
The Company amended its Revolving Credit Facility to, among other things, extend the revolving period from
November 30, 2022 toMay 31, 2024 and the scheduled maturity date fromMay 31, 2024 toNovember 30, 2025 ; -
TPC’s direct originations platform entered into
of additional non-binding signed term sheets with venture growth stage companies;$85.0 million -
The Company closed
of additional debt commitments; and$23.0 million -
The Company funded
in new investments.$25.0 million
CONFERENCE CALL
The Company will host a conference call at
ABOUT
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements. Forward-looking statements are not guarantees of future performance, condition or results and involve a number of substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. Actual events, performance, condition or results may differ materially from those in the forward-looking statements as a result of a number of factors, including as a result of changes in economic, market or other conditions, the impact of the COVID-19 pandemic and its effects on the Company’s and its portfolio companies’ results of operations and financial condition, and those factors described from time to time in the Company’s filings with the
Consolidated Statements of Assets and Liabilities (in thousands, except per share data) |
||||||||
|
|
|
|
|
||||
Assets |
|
(unaudited) |
|
|
||||
Investments at fair value (amortized cost of |
|
$ |
876,718 |
|
|
$ |
865,340 |
|
Cash and cash equivalents |
|
|
43,098 |
|
|
|
51,272 |
|
Restricted cash |
|
|
- |
|
|
|
7,875 |
|
Deferred credit facility costs |
|
|
1,721 |
|
|
|
2,170 |
|
Prepaid expenses and other assets |
|
|
522 |
|
|
|
1,013 |
|
Total assets |
|
$ |
922,059 |
|
|
$ |
927,670 |
|
|
|
|
|
|
|
|
||
Liabilities |
|
|
|
|
|
|
||
Revolving Credit Facility |
|
$ |
105,000 |
|
|
$ |
200,000 |
|
2025 Notes, net |
|
|
69,442 |
|
|
|
69,348 |
|
2026 Notes, net |
|
|
198,377 |
|
|
|
198,155 |
|
2027 Notes, net |
|
|
123,703 |
|
|
|
- |
|
Other accrued expenses and liabilities |
|
|
21,213 |
|
|
|
25,676 |
|
Total liabilities |
|
$ |
517,735 |
|
|
$ |
493,179 |
|
|
|
|
|
|
|
|
||
Net assets |
|
|
|
|
|
|
||
Preferred stock, par value |
|
$ |
- |
|
|
$ |
- |
|
Common stock, par value |
|
|
311 |
|
|
|
310 |
|
Paid-in capital in excess of par value |
|
|
415,095 |
|
|
|
414,218 |
|
Total distributable earnings (loss) |
|
|
(11,082 |
) |
|
|
19,963 |
|
Total net assets |
|
$ |
404,324 |
|
|
$ |
434,491 |
|
Total liabilities and net assets |
|
$ |
922,059 |
|
|
$ |
927,670 |
|
|
|
|
|
|
|
|
||
Shares of common stock outstanding (par value |
|
|
31,074 |
|
|
|
31,011 |
|
Net asset value per share |
|
$ |
13.01 |
|
|
$ |
14.01 |
|
Consolidated Statements of Operations (in thousands, except per share data) |
||||||||||||||||
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
||||||||
Investment income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income from investments |
|
$ |
26,995 |
|
|
$ |
19,743 |
|
|
$ |
52,928 |
|
|
$ |
38,933 |
|
Other income |
|
|
433 |
|
|
|
579 |
|
|
|
1,849 |
|
|
|
1,362 |
|
Total investment and other income |
|
$ |
27,428 |
|
|
$ |
20,322 |
|
|
$ |
54,777 |
|
|
$ |
40,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Base management fee |
|
$ |
3,901 |
|
|
$ |
3,146 |
|
|
$ |
7,618 |
|
|
$ |
6,070 |
|
Income incentive fee |
|
|
3,163 |
|
|
|
2,351 |
|
|
|
6,550 |
|
|
|
4,578 |
|
Interest expense and amortization of fees |
|
|
6,126 |
|
|
|
4,138 |
|
|
|
11,225 |
|
|
|
8,489 |
|
Administration agreement expenses |
|
|
501 |
|
|
|
470 |
|
|
|
1,080 |
|
|
|
988 |
|
General and administrative expenses |
|
|
1,083 |
|
|
|
814 |
|
|
|
2,103 |
|
|
|
1,860 |
|
Total operating expenses |
|
$ |
14,774 |
|
|
$ |
10,919 |
|
|
$ |
28,576 |
|
|
$ |
21,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
$ |
12,654 |
|
|
$ |
9,403 |
|
|
$ |
26,201 |
|
|
$ |
18,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gains (losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) on investments |
|
$ |
(745 |
) |
|
$ |
55 |
|
|
$ |
(3,850 |
) |
|
$ |
(15,642 |
) |
Net change in unrealized gains (losses) on investments |
|
|
(26,322 |
) |
|
|
3,209 |
|
|
|
(31,059 |
) |
|
|
21,858 |
|
Net realized loss on extinguishment of debt |
|
|
- |
|
|
|
(681 |
) |
|
|
- |
|
|
|
(681 |
) |
Net realized and unrealized gains (losses) |
|
$ |
(27,067 |
) |
|
$ |
2,583 |
|
|
$ |
(34,909 |
) |
|
$ |
5,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
|
$ |
(14,413 |
) |
|
$ |
11,986 |
|
|
$ |
(8,708 |
) |
|
$ |
23,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net investment income per share |
|
$ |
0.41 |
|
|
$ |
0.30 |
|
|
$ |
0.84 |
|
|
$ |
0.59 |
|
Basic and diluted net increase in net assets per share |
|
$ |
(0.46 |
) |
|
$ |
0.39 |
|
|
$ |
(0.28 |
) |
|
$ |
0.77 |
|
Basic and diluted weighted average shares of common stock outstanding |
|
|
31,037 |
|
|
|
30,917 |
|
|
|
31,024 |
|
|
|
30,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total basic and diluted distributions declared per share |
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
0.72 |
|
$ |
0.72 |
Weighted Average Portfolio Yield on Total Debt Investments |
||||||||||||||||
Ratios |
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
(Percentages, on an annualized basis)(1) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Weighted average portfolio yield on total debt investments(2) |
|
|
14.5 |
% |
|
|
13.9 |
% |
|
|
15.0 |
% |
|
|
13.6 |
% |
Coupon income |
|
|
10.4 |
% |
|
|
9.9 |
% |
|
|
10.2 |
% |
|
|
9.8 |
% |
Accretion of discount |
|
|
0.7 |
% |
|
|
0.7 |
% |
|
|
0.8 |
% |
|
|
0.7 |
% |
Accretion of end-of-term payments |
|
|
1.7 |
% |
|
|
1.4 |
% |
|
|
1.8 |
% |
|
|
1.4 |
% |
Impact of prepayments during the period |
|
|
1.7 |
% |
|
|
1.9 |
% |
|
|
2.2 |
% |
|
|
1.7 |
% |
_____________ |
||
(1) |
Weighted average portfolio yields on total debt investments for periods shown are the annualized rates of interest income recognized during the period divided by the average amortized cost of debt investments in the portfolio during the period. |
|
(2) |
The weighted average portfolio yields on total debt investments reflected above do not represent actual investment returns to the Company’s stockholders. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220803005908/en/
INVESTOR RELATIONS AND MEDIA CONTACT
212-477-8438
lberman@igbir.com
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