BlackRock TCP Capital (TCPC) Q1 2025 Earnings Call May 08, 2025 12:00 PM ET Speaker0 Ladies and gentlemen, good afternoon. Welcome everyone to BlackRock TCP Capital Corp. Q1 twenty twenty five Earnings Call. Today's conference call is being recorded for replay purposes. During the presentation, all participants will be in a listen only mode. A question and answer session will follow the company's formal remarks. I will repeat these instructions before we begin the Q and A session. And now I would like to tu ...

BlackRock TCP (TCPC) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.88%. A quarter ago, it was expected that this investment company would post earnings of $0.36 per share when it actually produced earnings of $0.38, delivering a surprise of 5.56%.Over the last four quarters, the c ...

Exhibit 99.1 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 SANTA MONICA, Calif., May 8, 2025 - BlackRock TCP Capital Corp. ("we," "us," "our," "TCPC" or the "Company"), a business development company (NASDAQ: TCPC), today announced its financial results for the first quarter ended March 31, 2025 and filed its Form 10-Q with t ...

BlackRock TCP Capital Corp. Investor presentation March 31, 2025 Notable Financial Developments First Quarter 2025 Financial Highlights and Portfolio Overview Diversified portfolio with an emphasis on less-cyclical businesses Flexible capital with available liquidity 1 Amount excludes the impact of amortization of purchase discount recorded in connection the closing of the merger ("Merger") with BlackRock Capital Investment Corporation ("BCIC") on March 18, 2024. See slide 20 for further description of non- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2025 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period From ____ to ____ Commission File Number: 814-00899 BLACKROCK TCP CAPITAL CORP. (Exact Name of Registrant as Specified in its Charter) Delaware 56-2594706 (State ...

Financial Data and Key Metrics Changes - Full year 2024 adjusted net investment income was $1.52 per share, down from $1.84 per share in 2023, with an annualized net investment income ROE of 14.5% [10] - Fourth quarter adjusted net investment income per share was flat at $0.36 compared to the previous quarter, with NAV per share decreasing to $9.23 from $10.11 [11][10] - Non-accruals represented 5.6% of the portfolio at fair market value, up from 3.8% in the previous quarter [11] Business Line Data and Key Metrics Changes - The portfolio had a fair market value of approximately $1.8 billion invested across 154 companies, with 91.2% in senior secured loans [30] - The weighted average effective yield of the portfolio decreased to 12.4% from 13.4% in the previous quarter [31] - New investments had a weighted average yield of 10.8%, while exited investments had a yield of 14% [32] Market Data and Key Metrics Changes - The overall M&A volumes remained below expectations, but there was a healthy flow of new investment opportunities [33][39] - The weighted average interest rate on debt outstanding decreased to 5.2% from 5.4% in the prior quarter [50] Company Strategy and Development Direction - The company plans to focus on the core middle market with a proactive approach to sourcing and underwriting, while also opportunistically investing in lower and upper middle market companies [24] - A highly diversified portfolio will be maintained, limiting exposure to specific industry subsectors [26] - The company will prioritize investing in first lien loans and deepen connections with the broader BlackRock platform for competitive advantage [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future and confidence in their strategic plan to navigate challenges in 2024 [10] - The company acknowledged the impact of lower base rates and increased non-accruals on performance, emphasizing a focus on resolving credit issues [12][10] - Management highlighted the importance of thoughtful solutions for resolving credit issues, which may take time [13] Other Important Information - The Board decided to reduce the regular dividend to $0.25 per share for the first quarter, while also declaring a $0.04 special dividend [20][21] - The advisor agreed to waive one-third of the base management fee for three quarters beginning January 1, 2025 [22] Q&A Session Summary Question: Can you provide details on the spillover and target level for dividends? - The company has about $0.10 of carryover from the prior quarter and aims for a sustainable regular dividend level based on current earnings power [54][55] Question: Will there be any strategic changes due to the BlackRock HPS acquisition? - Management does not expect meaningful changes and emphasizes a focus on business as usual, while highlighting expanded resources from the acquisition [58][60] Question: What level of confidence is there regarding future markdowns? - Management is focused on managing existing non-accruals and believes most markdowns have been centered around known assets [67][70] Question: What are the risks associated with new non-accruals like Renovo? - Management believes Renovo's issues are primarily operational and less exposed to external factors like tariffs due to its focus on smaller projects [74][76] Question: Is the management fee waiver related to the HPS acquisition? - Management clarified that the fee waiver is a thoughtful approach to acknowledge NAV decline and is not specifically timed with the HPS acquisition [79] Question: What steps are being taken to maintain investment grade rating? - The company is focused on maintaining its investment grade rating and plans to access capital markets closer to the maturity date of its notes [85][88] Question: What has changed regarding NAV per share? - The decrease in NAV is attributed to broader factors including rapid rate increases and a slower growth environment impacting borrowers [90][92]

Financial Performance - For the year ended December 31, 2024, adjusted net investment income was $121.5 million, or $1.52 per share, compared to $106.6 million, or $1.84 per share in 2023[7]. - Total investment income for the year ended December 31, 2024, was $259,437,390, an increase of 24% compared to $209,328,883 in 2023[30]. - Net investment income before taxes for the year ended December 31, 2024, was $132,280,424, up from $106,804,073 in 2023, representing a 24% increase[30]. - Basic and diluted earnings per share for the year ended December 31, 2024, were $(0.79), compared to $0.67 in 2023[30]. - The company reported a net realized loss of $(67,110,946) for the year ended December 31, 2024, compared to a loss of $(31,648,232) in 2023[30]. - The net change in unrealized appreciation (depreciation) for the year ended December 31, 2024, was $(127,784,096), compared to $(36,434,094) in 2023[30]. - The net increase in net assets resulting from operations for the year ended December 31, 2024, was a loss of $63,137,172, compared to a gain of $38,474,432 in 2023[30]. Assets and Investments - Total assets as of December 31, 2024, were $1.9 billion, with net assets of $785.1 million and net asset value per share of $9.23, down from $2.0 billion, $865.6 million, and $10.11 per share as of September 30, 2024[13]. - Total assets as of December 31, 2024, amounted to $1,923,031,363, an increase from $1,698,772,353 as of December 31, 2023, representing a growth of approximately 13.2%[28]. - Total investments at fair value reached $1,794,758,336, up from $1,554,941,110, indicating a year-over-year increase of about 15.4%[28]. - The company reported net assets of $785,123,667 as of December 31, 2024, compared to $687,601,546 in the previous year, reflecting a growth of approximately 14.2%[28]. Debt and Liquidity - The company’s total debt, net of deferred issuance costs, was $1,118,340,225 as of December 31, 2024, an increase from $985,200,609 in the prior year, representing a rise of approximately 13.5%[28]. - The combined weighted-average interest rate on debt outstanding was 5.19% as of December 31, 2024[19]. - Available liquidity as of December 31, 2024, was approximately $615.3 million, including $519.3 million in available capacity under the leverage program[18]. - The company has a total leverage of $1,126,314,826, with a weighted-average interest rate of approximately 2.00%[21]. - Cash and cash equivalents decreased to $91,589,702 from $112,241,946, a decline of about 18.4% year-over-year[28]. Dividends - The company declared a first quarter dividend of $0.25 per share and a special dividend of $0.04 per share, both payable on March 31, 2025[6]. - A first quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share were declared, payable on March 31, 2025[25]. - The company intends to declare a special dividend of at least $0.02 per share in each of the second and third quarters of 2025, subject to Board approval[25]. Operations and Management - The company experienced a net decrease in net assets from operations of $38.6 million, or $0.45 per share, for the fourth quarter of 2024[17]. - The Adviser agreed to waive one-third of its base management fee for three quarters starting January 1, 2025, which may impact future expenses[24]. - The company is focused on direct lending to middle-market companies and small businesses, aiming for high total returns through current income and capital appreciation[32]. - The company is externally managed by a wholly-owned, indirect subsidiary of BlackRock, Inc.[32]. Portfolio Performance - Debt investments on non-accrual status represented 5.6% of the portfolio at fair value and 14.4% at cost as of December 31, 2024, compared to 3.8% and 9.3% respectively at the end of the previous quarter[4]. - The weighted average annual effective yield of the debt portfolio was approximately 12.4% as of December 31, 2024, down from 13.4% as of September 30, 2024[11]. - Total acquisitions during the fourth quarter of 2024 were approximately $120.7 million, while total investment dispositions were $168.6 million[4].

BlackRock TCP Capital Corp (NASDAQ:TCPC) Q4 2024 Results Conference Call February 27, 2025 1:00 PM ET Company Participants Michaela Murray - Investor Relations Phil Tseng - Chairman & Chief Executive Officer Erik Cuellar - Chief Financial Officer Dan Worrell - Co-CIO Jason Mehring - President Conference Call Participants Finian O'Shea - Wells Fargo Securities Robert Dodd - Raymond James Christopher Nolan - Ladenburg Thalmann Operator Ladies and gentlemen, good afternoon. Welcome everyone to BlackRock TCP Ca ...

Core Viewpoint - BlackRock TCP reported quarterly earnings of $0.38 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, but down from $0.44 per share a year ago, indicating a 5.56% earnings surprise [1][2] Financial Performance - The company posted revenues of $61.25 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 6.61%, compared to $50.85 million in the same quarter last year [2] - Over the last four quarters, BlackRock TCP has surpassed consensus EPS estimates just once and topped consensus revenue estimates three times [2] Stock Performance - BlackRock TCP shares have increased approximately 7.2% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $62.56 million, and for the current fiscal year, it is $1.42 on revenues of $247.11 million [7] - The estimate revisions trend for BlackRock TCP is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Financial - SBIC & Commercial Industry, to which BlackRock TCP belongs, is currently in the top 22% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Structure and Leverage - The Company has a leverage program consisting of $300.0 million in available debt under a revolving credit facility, $200.0 million under a senior secured revolving credit facility, and $325.0 million in senior unsecured notes maturing in 2026 and 2029[442]. - Total leverage outstanding as of December 31, 2024, was $1.13 billion, with available capacity of $519.33 million[497]. - As of December 31, 2024, the Company's asset coverage ratio was 178.9%, above the required 150%[501]. Investment Strategy and Portfolio - The Company’s investment strategy focuses on achieving high total returns through current income and capital appreciation, primarily investing in the debt of middle-market companies[441]. - As of December 31, 2024, the consolidated investment portfolio was valued at $1,794.8 million, with 91.5% invested in debt investments, primarily in senior secured debt[473]. - The average portfolio company investment at fair value was approximately $11.7 million as of December 31, 2024[473]. - As of December 31, 2024, 98.3% of investments were categorized as Level 3, indicating significant reliance on unobservable inputs for valuation[464]. - The largest portfolio company investment based on fair value was approximately 6.2% of the total portfolio as of December 31, 2024[473]. Revenue and Income - The Company generates revenues primarily from interest on debt investments, with expected maturities generally between three to five years[449]. - Investment income for the year ended December 31, 2024, totaled $259.4 million, an increase from $209.3 million in 2023 and $181.0 million in 2022, primarily driven by higher interest income due to increased SOFR rates and investments from the Merger[478]. - Net investment income for the year ended December 31, 2024, was $131.8 million, compared to $106.6 million in 2023 and $88.4 million in 2022, reflecting higher total investment income despite increased expenses[480]. - For the year ended December 31, 2024, net investment income was $131.76 million, a 23.6% increase from $106.56 million in 2023[492]. - Adjusted net investment income for 2024 was $121.45 million, compared to $106.56 million in 2023, reflecting a 14% increase[492]. Expenses and Losses - Total operating expenses for the year ended December 31, 2024, were $127.2 million, up from $102.5 million in 2023 and $92.6 million in 2022, largely due to increased interest expenses from higher debt levels following the Merger[479]. - The net realized loss for the year ended December 31, 2024, was $(67.1) million, worsening from $(31.6) million in 2023 and $(18.2) million in 2022, primarily due to losses from restructuring investments in several companies[481]. - The change in net unrealized depreciation for the year ended December 31, 2024, was $(127.8) million, compared to $(36.4) million in 2023 and $(79.4) million in 2022, with significant losses attributed to investments in Razor and Edmentum[482]. Dividends and Distributions - The Company must distribute at least 90% of its ordinary income and short-term capital gains to maintain its qualification as a RIC[508]. - For the year ended December 31, 2024, the total dividends declared amounted to $115,280,670, with a per share distribution of $1.46[511]. - The company declared a first quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share for the first quarter of 2025[520]. - Approximately $2.3 million of cash distributions were reinvested through the new dividend reinvestment plan (DRIP) in 2024[494]. - The company has the ability to declare a large portion of a dividend in shares instead of cash to satisfy annual distribution requirements[516]. Tax and Regulatory Considerations - The Company has elected to be treated as a RIC for U.S. federal income tax purposes, allowing it to avoid corporate level taxes on distributed income[443]. - The company may face adverse tax consequences if it does not distribute a certain percentage of its income annually[515]. Mergers and Acquisitions - The Company entered into a Merger Agreement on September 6, 2023, with BCIC, resulting in BCIC ceasing to exist as a separate entity[444]. - The Company completed a Merger with BCIC on March 18, 2024, which was treated as a tax-free reorganization, allowing the Company to carry forward the historical cost basis of the acquired investments[487]. - The Company issued 27,823,870 shares of its common stock to former BCIC shareholders as a result of the Merger, with an exchange ratio of 0.3834 shares[445]. - The company paid $7.3 million in dividends payable assumed in the merger for former BCIC shareholders[513]. Management and Advisory Fees - The base management fee for the Company was reduced from 1.50% to 1.25% on assets equal to or below 200% of the net asset value following the Merger[453]. - The Company’s investment management agreement allows for incentive compensation based on achieving a cumulative total return of at least 7% on contributed common equity[454]. - Incentive fees included in operating expenses for the year ended December 31, 2024, were $19.2 million, a decrease from $22.6 million in 2023, due to not accruing incentive fees in the last quarter of 2024[484]. - The advisor voluntarily agreed to waive one-third of its base management fee for three calendar quarters starting January 1, 2025[520]. - The advisor and its affiliates may manage other funds, leading to potential conflicts in investment opportunities allocation[519].