TCPC BlackRock TCP Capital Corporation

BlackRock TCP Capital Corp. (“we,” “us,” “our,” “TCPC” or the “Company”), a business development company (NASDAQ: TCPC), today announced its financial results for the second quarter ended June 30, 2024 and filed its Form 10-Q with the U.S. Securities and Exchange Commission.

FINANCIAL HIGHLIGHTS

• On a GAAP basis, net investment income for the quarter ended June 30, 2024 was $35.8 million, or $0.42 per share on a diluted basis, which exceeded the regular dividend of $0.34 per share paid on June 28, 2024. Excluding amortization of purchase discount recorded in connection with the Merger(1), adjusted net investment income(1) for the quarter ended June 30, 2024 was $32.1 million, or $0.38 per share on a diluted basis.
• Net asset value per share was $10.20 at June 30, 2024 compared to $11.14 at March 31, 2024.
• Net decrease in net assets from operations on a GAAP basis for the quarter ended June 30, 2024 was $51.3 million, or $0.60 per share, compared to a $5.1 million, or $0.08 per share, net increase in net assets from operations for the quarter ended March 31, 2024. Net decrease in net assets from operations for the six months ended June 30, 2024 was $46.2 million, or $0.63 per share.
• Total acquisitions during the quarter ended June 30, 2024 were approximately $129.7 million and total investment dispositions were $185.0 million during the three months ended June 30, 2024.
• As of June 30, 2024, debt investments on non-accrual status represented 4.9% of the portfolio at fair value and 10.5% at cost.
• On May 30, 2024, the Company issued $325.0 million in aggregate principal amount of 6.95% notes due 2029 (the “2029 Notes”). Additionally, subsequent to quarter end on August 1, 2024, the Company amended the Operating Facility to extend the maturity date to August 1, 2029.
• On August 7, 2024, our Board of Directors declared a third quarter dividend of $0.34 per share, payable on September 30, 2024 to stockholders of record as of the close of business on September 16, 2024.

“In the second quarter, we generated adjusted net investment income of 38 cents per share, resulting in adjusted annualized NII return on average equity of 14%, which is at the high end of historical levels, and strong dividend coverage of 112%. Our NAV declined, reflecting higher non-accruals in the quarter. We are proactively working with our borrowers, their lenders and sponsors to resolve credit issues as quickly as possible while also achieving the best outcomes for our investors. We have made good progress on these efforts and our overall portfolio remains healthy," said Rajneesh Vig, BlackRock TCP Capital Corp. Chairman and CEO.

"Looking to the second half of 2024, our capital position remains strong, and our pipeline of investment prospects is compelling. Investment activity picked up during the quarter as we deployed $130 million of capital into new investments. With our expertise, experience, and resources of the BlackRock platform, we are confident that we will continue to deliver attractive long-term returns to our shareholders."

SELECTED FINANCIAL HIGHLIGHTS(1)

 

 

Three Months Ended June 30,

 

2024

 

2023

 

Amount

 

Per Share

 

Amount

 

Per Share

Net investment income

$

35,825,532

 

0.42

 

$

27,604,479

 

0.48

 

Less: Purchase accounting discount amortization

 

3,694,506

 

0.04

 

 

—

 

—

 

Adjusted net investment income

$

32,131,026

 

0.38

 

$

27,604,479

 

0.48

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized gain (loss)

$

(87,102,049

)

(1.02

)

$

(11,353,793

)

(0.20

)

Less: Realized gain (loss) due to the allocation of purchase discount

 

5,187,625

 

0.06

 

 

—

 

—

 

Less: Net change in unrealized appreciation (depreciation) due to the allocation of purchase discount

 

(8,882,131

)

(0.10

)

 

—

 

—

 

Adjusted net realized and unrealized gain (loss)

$

(83,407,543

)

(0.98

)

$

(11,353,793

)

(0.20

)

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

$

(51,276,517

)

(0.60

)

$

16,250,686

 

0.28

 

Less: Purchase accounting discount amortization

 

3,694,506

 

0.04

 

 

—

 

—

 

Less: Realized gain (loss) due to the allocation of purchase discount

 

5,187,625

 

0.06

 

 

—

 

—

 

Less: Net change in unrealized appreciation (depreciation) due to the allocation of purchase discount

 

(8,882,131

)

(0.10

)

 

—

 

—

 

Adjusted net increase (decrease) in assets resulting from operations

$

(51,276,517

)

(0.60

)

$

16,250,686

 

0.28

 

(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 June 30, 2024, our consolidated investment portfolio consisted of debt and equity positions in 158 portfolio companies with a total fair value of approximately $2.0 billion, of which 91.1% was in senior secured debt. 81.3% of the total portfolio was first lien. Equity positions, which include equity interests in diversified portfolios of debt, represented approximately 8.2% of the portfolio. 93.4% of our debt investments were floating rate, 97.1% of which had interest rate floors.

As of June 30, 2024, the weighted average annual effective yield of our debt portfolio was approximately 13.7%(1) and the weighted average annual effective yield of our total portfolio was approximately 12.4%, compared with 14.1% and 13.4%, respectively, as of March 31, 2024. Debt investments in ten portfolio companies were on non-accrual status as of June 30, 2024, representing 4.9% of the consolidated portfolio at fair value and 10.5% at cost.

During the three months ended June 30, 2024, we invested approximately $129.7 million, primarily in 10 investments, comprised of 5 new and 5 existing portfolio companies. Of these investments, $123.5 million, or 95.3% of total acquisitions, were in senior secured loans, and $6.2 million, or 4.7% of total acquisitions, were comprised primarily of equity investments. Additionally, we received approximately $185.0 million in proceeds from sales or repayments of investments during the three months ended June 30, 2024. New investments during the quarter had a weighted average effective yield of 12.6%. Investments we exited had a weighted average effective yield of 14.2%.

As of June 30, 2024, total assets were $2.2 billion, net assets were $873.1 million and net asset value per share was $10.20, as compared to $2.3 billion, $953.5 million, and $11.14 per share, respectively, as of March 31, 2024.

__________________________

(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 June 30, 2024 was approximately $71.5 million, or $0.84 per share. Investment income for the three months ended June 30, 2024 included $0.07 per share from prepayment premiums and related accelerated original issue discount and exit fee amortization, $0.04 per share from recurring portfolio investment original issue discount and exit fee amortization, $0.03 per share from interest income paid in kind and $0.03 per share in dividend income. This reflects our policy of recording interest income, adjusted for amortization of portfolio investment premiums and discounts, on an accrual basis. Origination, structuring, closing, commitment, and similar upfront fees received in connection with the outlay of capital are generally amortized into interest income over the life of the respective debt investment.

Total operating expenses for the three months ended June 30, 2024 were approximately $35.7 million, or $0.42 per share, including interest and other debt expenses of $19.7 million, or $0.23 per share, and incentive compensation from net investment income of $6.8 million, or $0.08 per share. Excluding incentive compensation, interest and other debt expenses, annualized second quarter expenses were 3.9% of average net assets.

Net investment income for the three months ended June 30, 2024 was approximately $35.8 million, or $0.42 per share. Net realized losses for the three months ended June 30, 2024 were $35.5 million, or $0.41 per share. Net realized losses for the three months ended June 30, 2024 was primarily comprised of $22.8 million and $12.8 million in losses from the restructuring of our investments in Thras.io and Hylan, respectively. Net unrealized losses for the three months ended June 30, 2024 were $51.6 million, or $0.60 per share. Net unrealized losses for the three months ended June 30, 2024 included a $31.2 million unrealized loss on our investment in SellerX, a $20.8 million unrealized loss on our investment in Pluralsight, a $11.3 million unrealized loss on our investment in Lithium, and a $4.0 million unrealized loss on our investment in Edmentum and other unrealized losses across the portfolio, partially offset by $18.9 million and $12.3 million reversals of previous unrealized losses from the restructuring of our investments in Thras.io and Hylan, respectively. Net decrease in net assets resulting from operations for the three months ended June 30, 2024 was $51.3 million, or $0.60 per share.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2024, available liquidity was approximately $779.8 million, comprised of approximately $585.1 million in available capacity under our leverage program, $194.7 million in cash and cash equivalents.

The combined weighted-average interest rate on debt outstanding at June 30, 2024 was 5.00%.

Total debt outstanding at June 30, 2024, including debt assumed as a result of the Merger, was as follows:

 

Maturity

Rate

 

Carrying Value (1)

Available

Total Capacity

 

Operating Facility

2026

EURIBOR+2.00%

(2)

$

7,923,529

 

$

292,076,471

$

300,000,000

(3)

Funding Facility II

2027

SOFR+2.05%

(4)

 

—

 

 

200,000,000

 

200,000,000

(5)

Merger Sub Facility(6)

2028

SOFR+2.00%

(7)

 

182,000,000

 

 

83,000,000

 

265,000,000

(8)

SBA Debentures

2024−2031

2.52%

(9)

 

150,000,000

 

 

10,000,000

 

160,000,000

 

2024 Notes ($250 million par)

2024

3.90%

 

 

249,908,671

 

 

—

 

249,908,671

 

2025 Notes ($92 million par)(6)

2025

Fixed/Variable

(10)

 

92,000,000

 

 

—

 

92,000,000

 

2026 Notes ($325 million par)

2026

2.85%

 

 

325,595,831

 

 

—

 

325,595,831

 

2029 Notes ($325 million par)

2029

6.95%

 

 

321,437,113

 

 

—

 

321,437,113

 

Total leverage

 

 

 

 

1,328,865,144

 

$

585,076,471

$

1,913,941,615

 

Unamortized issuance costs

 

 

 

 

(8,551,698

)

 

 

 

Debt, net of unamortized issuance costs

 

 

 

$

1,320,313,446

 

 

 

 

__________________________

(1)

Except for the 2024 Notes, 2026 Notes and 2029 Notes, all carrying values are the same as the principal amounts outstanding.

(2)

As of June 30, 2024, $8.0 million of the outstanding amount bore interest at a rate of EURIBOR + 2.00%.

(3)

Operating Facility includes a $100.0 million accordion which allows for expansion of the facility to up to $400.0 million subject to consent from the lender and other customary conditions.

(4)

Subject to certain funding requirements and a SOFR credit adjustment of 0.15%.

(5)

Funding Facility II includes a $50.0 million accordion which allows for expansion of the facility to up to $250.0 million subject to consent from the lender and other customary conditions.

(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 1.75% or 2.00% depending on a ratio of the borrowing base to certain committed indebtedness, and is also subject to a credit spread adjustment of 0.10%. If Merger Sub elects to borrow based on the alternate base rate, the applicable margin could be either 0.75% or 1.00% depending on a ratio of the borrowing base to certain committed indebtedness.

(8)

Merger Sub Facility includes a $60.0 million accordion which allows for expansion of the facility to up to $325.0 million subject to consent from the lender and other customary conditions.

(9)

Weighted-average interest rate, excluding fees of 0.35% or 0.36%.

(10)

The 2025 Notes consist of two tranches: $35.0 million aggregate principal amount with a fixed interest rate of 6.85% and $57.0 million aggregate principal amount bearing interest at a rate equal to SOFR plus 3.14%.

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 June 30, 2024, approximately $0.8 million of cash distributions were reinvested for electing Participants through purchase of shares in the open market in accordance with the terms of the DRIP.

On April 27, 2024, our Board of Directors re-approved our stock repurchase plan to acquire up to $50.0 million in the aggregate of our common stock at prices at certain thresholds below our net asset value per share, in accordance with the guidelines specified in Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934. During the three months ended June 30, 2024, no shares were repurchased.

RECENT DEVELOPMENTS

On August 1, 2024 the Operating Facility was amended to (i) extend the expiration date of the Operating Facility and the maturity date with respect to loans made thereunder to August 1, 2028 and August 1, 2029, respectively, (ii) delete references to the 2022 Notes, (iii) remove certain borrowing base restrictions, (iv) lower the SOFR adjustment, (v) update the minimum amount of stockholder’s equity figure, (vi) update the “change in control” provisions to account for personnel changes and structuring variations and (vii) update certain mechanical/administrative provisions, including provisions for replacing CDOR and other reference rates.

On August 7, 2024, our Board of Directors declared a third quarter dividend of $0.34 per share payable on September 30, 2024 to stockholders of record as of the close of business on September 16, 2024.

CONFERENCE CALL AND WEBCAST

BlackRock TCP Capital Corp. will host a conference call on Wednesday, August 7, 2024 at 1:00 p.m. Eastern Time (10:00 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 570726. 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 Second Quarter 2024 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 Wednesday, August 14, 2024. 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 586837.

BlackRock TCP Capital Corp.

 

 

 

 

 

 

 

Consolidated Statements of Assets and Liabilities

 

 

 

 

 

 

 

 

 

June 30, 2024

 

December 31, 2023

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

Investments, at fair value:

 

 

 

 

Non-controlled, non-affiliated investments (cost of $1,881,705,309 and $1,389,865,889, respectively)

$

1,745,584,069

 

$

1,317,691,543

 

Non-controlled, affiliated investments (cost of $58,094,344 and $63,188,613, respectively)

 

54,260,749

 

 

65,422,375

 

Controlled investments (cost of $212,223,240 and $198,335,511, respectively)

 

181,064,083

 

 

171,827,192

 

Total investments (cost of $2,152,022,893 and $1,651,390,013, respectively)

 

1,980,908,901

 

 

1,554,941,110

 

 

 

 

 

 

Cash and cash equivalents

 

194,669,436

 

 

112,241,946

 

Interest, dividends and fees receivable

 

33,557,117

 

 

25,650,684

 

Deferred debt issuance costs

 

5,481,033

 

 

3,671,727

 

Due from broker

 

1,076,306

 

 

—

 

Prepaid expenses and other assets

 

2,988,694

 

 

2,266,886

 

Total assets

 

2,218,681,487

 

 

1,698,772,353

 

 

 

 

 

 

Liabilities

 

 

 

 

Debt (net of deferred issuance costs of $8,551,698 and $3,355,221, respectively)

 

1,320,313,446

 

 

985,200,609

 

Interest and debt related payables

 

12,452,693

 

 

10,407,570

 

Incentive fees payable

 

6,815,672

 

 

5,347,711

 

Interest Rate Swap, at fair value

 

838,386

 

 

—

 

Reimbursements due to the Advisor

 

668,806

 

 

844,664

 

Management fees payable

 

—

 

 

5,690,105

 

Payable for investments purchased

 

—

 

 

960,000

 

Accrued expenses and other liabilities

 

4,487,560

 

 

2,720,148

 

Total liabilities

 

1,345,576,563

 

 

1,011,170,807

 

 

 

 

 

 

Net assets

$

873,104,924

 

$

687,601,546

 

 

 

 

 

 

Composition of net assets applicable to common shareholders

 

 

 

 

Common stock, $0.001 par value; 200,000,000 shares authorized, 85,591,134 and 57,767,264 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively

$

85,591

 

$

57,767

 

Paid-in capital in excess of par

 

1,248,080,041

 

 

967,643,255

 

Distributable earnings (loss)

 

(375,060,708

)

 

(280,099,476

)

Total net assets

 

873,104,924

 

 

687,601,546

 

Total liabilities and net assets

$

2,218,681,487

 

$

1,698,772,353

 

 

 

 

 

 

Net assets per share

$

10.20

 

$

11.90

 

 

BlackRock TCP Capital Corp.

 

 

 

 

 

 

 

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

Investment income

 

 

 

 

 

 

 

 

Interest income (excluding PIK):

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

$

63,562,637

 

$

46,264,863

 

$

112,208,830

 

$

91,418,011

 

Non-controlled, affiliated investments

 

384,684

 

 

47,703

 

 

732,319

 

 

93,238

 

Controlled investments

 

2,696,570

 

 

2,775,676

 

 

5,555,650

 

 

4,984,728

 

PIK interest income:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

2,034,356

 

 

3,631,465

 

 

4,440,033

 

 

5,216,299

 

Non-controlled, affiliated investments

 

—

 

 

—

 

 

92,675

 

 

—

 

Controlled investments

 

353,752

 

 

310,993

 

 

703,721

 

 

310,993

 

Dividend income:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

594,372

 

 

255,437

 

 

906,696

 

 

558,179

 

Non-controlled, affiliated investments

 

1,018,486

 

 

653,143

 

 

1,732,189

 

 

1,287,268

 

Controlled investments

 

878,075

 

 

—

 

 

878,075

 

 

—

 

Other income:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

3,293

 

 

21,558

 

 

5,346

 

 

354,822

 

Non-controlled, affiliated investments

 

—

 

 

—

 

 

—

 

 

45,650

 

Total investment income

 

71,526,225

 

 

53,960,838

 

 

127,255,534

 

 

104,269,188

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Interest and other debt expenses

 

19,726,829

 

 

12,288,304

 

 

32,957,053

 

 

23,837,475

 

Incentive fees

 

6,815,672

 

 

5,855,495

 

 

12,696,050

 

 

11,245,191

 

Management fees

 

6,563,189

 

 

6,095,736

 

 

12,382,694

 

 

11,973,275

 

Professional fees

 

681,923

 

 

318,778

 

 

1,601,599

 

 

773,128

 

Administrative expenses

 

594,208

 

 

357,803

 

 

1,155,211

 

 

734,347

 

Director fees

 

197,500

 

 

208,819

 

 

414,219

 

 

559,819

 

Insurance expense

 

205,953

 

 

138,575

 

 

351,066

 

 

292,578

 

Custody fees

 

99,145

 

 

91,330

 

 

189,065

 

 

181,916

 

Other operating expenses

 

816,274

 

 

1,001,519

 

 

1,421,772

 

 

1,658,413

 

Total operating expenses

 

35,700,693

 

 

26,356,359

 

 

63,168,729

 

 

51,256,142

 

 

 

 

 

 

 

 

 

 

Net investment income before taxes

 

35,825,532

 

 

27,604,479

 

 

64,086,805

 

 

53,013,046

 

 

 

 

 

 

 

 

 

 

Excise tax expense

 

—

 

 

—

 

 

—

 

 

35,440

 

Net investment income

 

35,825,532

 

 

27,604,479

 

 

64,086,805

 

 

52,977,606

 

 

 

 

 

 

 

 

 

 

Realized and unrealized gain (loss) on investments and foreign currency

 

 

 

 

 

 

 

 

Net realized gain (loss):

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

(22,703,792

)

 

(394,628

)

 

(22,871,869

)

 

(31,024,332

)

Non-controlled, affiliated investments

 

(12,810,138

)

 

—

 

 

(12,810,138

)

 

—

 

Net realized gain (loss)

 

(35,513,930

)

 

(394,628

)

 

(35,682,007

)

 

(31,024,332

)

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation (1) (depreciation):

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

(57,619,007

)

 

(10,882,711

)

 

(63,771,066

)

 

21,089,611

 

Non-controlled, affiliated investments

 

8,310,670

 

 

919,061

 

 

(6,067,358

)

 

(1,208,066

)

Controlled investments

 

(2,137,940

)

 

(995,515

)

 

(4,650,847

)

 

(2,870,254

)

Interest Rate Swap

 

(141,842

)

 

—

 

 

(134,903

)

 

—

 

Net change in unrealized appreciation (depreciation)

 

(51,588,119

)

 

(10,959,165

)

 

(74,624,174

)

 

17,011,291

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized gain (loss)

 

(87,102,049

)

 

(11,353,793

)

 

(110,306,181

)

 

(14,013,041

)

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

$

(51,276,517

)

$

16,250,686

 

$

(46,219,376

)

$

38,964,565

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share

$

(0.60

)

$

0.28

 

$

(0.63

)

$

0.67

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average common shares outstanding

 

85,591,134

 

 

57,767,264

 

 

73,819,497

 

 

57,767,264

 

(1)

Includes $21,347,357 change in unrealized appreciation from application of Merger accounting under ASC 805 for the six months ended June 30, 2024.

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, 2023, 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) changes in the economy, financial markets and political environment, including the impacts of inflation and rising interest rates; (iv) 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 Russia and Ukraine), natural disasters or public health crises and epidemics; (v) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (vi) conditions in TCPC’s operating areas, particularly with respect to business development companies or regulated investment companies; and (vii) other considerations that may be disclosed from time to time in TCPC’s publicly disseminated documents and filings. Copies are available on the SEC’s website at www.sec.gov and the Company’s website at www.tcpcapital.com. Forward-looking statements are made as of the date of this press release and are subject to change without notice. The Company has no duty and does not undertake any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807811488/en/

BlackRock TCP Capital Corp. Michaela Murray (310) 566-1094 investor.relations@tcpcapital.com