BlackRock TCP Capital Corp (TCPC) Q3 2024 Earnings Call Highlights: Strong Dividend and ...

In This Article:

  • Adjusted Net Income: $0.36 per share.

  • Annualized Net Investment Income Return on Average Equity: Approximately 14%.

  • Fourth Quarter Dividend: $0.34 per share, with a special dividend of $0.10 per share.

  • Non-Accrual Loans: Decreased from 4.9% to 3.8% of portfolio fair value.

  • Net Realized Losses: $31.4 million.

  • Net Unrealized Gains: $19.2 million.

  • Weighted Average Annual Effective Yield of Performing Debt Portfolio: 13.4%.

  • Gross Investment Income: $0.83 per share.

  • Operating Expenses: $0.43 per share.

  • Incentive Fees: $6.5 million or $0.08 per share.

  • Available Liquidity: $582 million.

  • Net Leverage: 1.08 times.

  • Weighted Average Interest Rate on Debt: 5.4%.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • BlackRock TCP Capital Corp (NASDAQ:TCPC) reported an adjusted net income of $0.36 per share, with an annualized net investment income return on average equity of approximately 14%, which is at the high end of historical levels.

  • The Board of Directors declared a fourth quarter dividend of $0.34 per share, with a special dividend of $0.10 per share, indicating strong dividend coverage and commitment to shareholder returns.

  • Non-accrual loans decreased from 4.9% to 3.8% of portfolio fair value, showing improvement in portfolio quality.

  • The company has a robust pipeline of investment opportunities and continues to focus on the core middle market, which offers less competition and attractive pricing.

  • BlackRock TCP Capital Corp (NASDAQ:TCPC) maintains a strong capital position with $582 million in available liquidity, providing flexibility for future investments and operations.

Negative Points

  • Leadership changes were announced, with Rajneesh Vig stepping down as CEO and Chairman, which may cause uncertainty regarding future strategic direction.

  • The company experienced a net realized loss of $31.4 million due to the restructuring of investments in Pluralsight and McAfee.

  • Certain portfolio companies, such as Razor Group and SellerX, were placed on non-accrual status due to underperformance, impacting overall portfolio health.

  • The weighted average annual effective yield of the performing debt portfolio decreased slightly from 13.7% to 13.4%, indicating some yield compression.

  • The cost of debt increased due to refinancing activities, which may impact future net investment income if not managed effectively.