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BlackRock TCP Capital (TCPC) - 2024 Q1 - Quarterly Results
TCPCBlackRock TCP Capital (TCPC)2024-05-01 12:00

Financial Performance - For Q1 2024, BlackRock TCP Capital Corp. reported net investment income of 28.3million,or28.3 million, or 0.46 per share, exceeding the regular dividend of 0.34pershare[2].−TotalinvestmentincomeforQ12024wasapproximately0.34 per share[2]. - Total investment income for Q1 2024 was approximately 55.7 million, or 0.90pershare,withaweightedaverageeffectiveyieldofthedebtportfolioatapproximately14.10.90 per share, with a weighted average effective yield of the debt portfolio at approximately 14.1%[12][8]. - The net increase in net assets from operations for Q1 2024 was 5.1 million, or 0.08pershare,comparedto0.08 per share, compared to 13.3 million, or 0.23pershare,forthepreviousquarter[2].−NetinvestmentincomebeforetaxesforQ12024was0.23 per share, for the previous quarter[2]. - Net investment income before taxes for Q1 2024 was 28,261,273, compared to 25,408,567inQ12023,reflectingagrowthof7.325,408,567 in Q1 2023, reflecting a growth of 7.3%[28]. - Basic and diluted earnings per share decreased to 0.08 in Q1 2024 from 0.39inQ12023[28].−TotalinvestmentincomeforQ12024was0.39 in Q1 2023[28]. - Total investment income for Q1 2024 was 55,729,309, an increase of 10.4% from 50,308,350inQ12023[28].−TotaloperatingexpensesforQ12024wereapproximately50,308,350 in Q1 2023[28]. - Total operating expenses for Q1 2024 were approximately 27.5 million, or 0.44pershare,withannualizedexpensesat4.40.44 per share, with annualized expenses at 4.4% of average net assets[13]. - Total operating expenses rose to 27,468,036 in Q1 2024, up 10.3% from 24,899,783inQ12023[28].AssetandInvestmentOverview−AsofMarch31,2024,netassetvaluepersharedecreasedto24,899,783 in Q1 2023[28]. Asset and Investment Overview - As of March 31, 2024, net asset value per share decreased to 11.14 from 11.90atDecember31,2023[2].−Thecompany’sconsolidatedinvestmentportfolioconsistedofdebtandequitypositionsin157portfoliocompanieswithatotalfairvalueofapproximately11.90 at December 31, 2023[2]. - The company’s consolidated investment portfolio consisted of debt and equity positions in 157 portfolio companies with a total fair value of approximately 2.1 billion[7]. - Total investments at fair value were 2,116,419,296asofMarch31,2024,upfrom2,116,419,296 as of March 31, 2024, up from 1,554,941,110 at the end of 2023[26]. - Net assets increased to 953,482,427asofMarch31,2024,comparedto953,482,427 as of March 31, 2024, compared to 687,601,546 at the end of 2023, reflecting improved financial health[26]. - Total assets increased to 2,283,532,138asofMarch31,2024,comparedto2,283,532,138 as of March 31, 2024, compared to 1,698,772,353 at the end of 2023, indicating strong growth in the asset base[26]. Debt and Leverage - Total debt outstanding as of March 31, 2024, was 1,302,812,708,anincreasefrom1,302,812,708, an increase from 985,200,609 as of December 31, 2023, reflecting a significant rise in leverage[26]. - The combined weighted-average interest rate on debt outstanding was 5.08% as of March 31, 2024[15]. - The weighted-average interest rate on debt, excluding fees, was approximately 2.52% as of March 31, 2024[18]. - Debt investments on non-accrual status represented 1.7% of the portfolio at fair value and 3.6% at cost as of March 31, 2024[8]. Corporate Actions and Dividends - The company completed the acquisition of BlackRock Capital Investment Corporation on March 18, 2024, resulting in total acquisitions of approximately 607.0millionforthequarter[2].−ThecompanycompleteditsmergerwithBCIConMarch18,2024,resultinginBCIC′scorporateexistenceceasingandbecominganindirectwholly−ownedsubsidiary[21].−TheBoardofDirectorsdeclaredasecondquarterdividendof607.0 million for the quarter[2]. - The company completed its merger with BCIC on March 18, 2024, resulting in BCIC's corporate existence ceasing and becoming an indirect wholly-owned subsidiary[21]. - The Board of Directors declared a second quarter dividend of 0.34 per share, payable on June 28, 2024, to stockholders of record as of June 14, 2024[23]. - The company has a new dividend reinvestment plan (DRIP) effective from March 18, 2024, allowing shareholders to reinvest dividends into additional shares[17]. - The management fee rate was reduced from 1.50% to 1.25% on assets equal to or below 200% of the net asset value following the merger[22]. - The company has a stock repurchase plan to acquire up to $50.0 million of its common stock, although no shares were repurchased during the three months ended March 31, 2024[19][20]. Market and Economic Outlook - The company focuses on direct lending to middle-market companies and small businesses, aiming for high total returns through current income and capital appreciation[29]. - The company is externally managed by a wholly-owned subsidiary of BlackRock, Inc., ensuring alignment with investment objectives[29]. - Forward-looking statements indicate potential risks including changes in economic conditions, interest rates, and regulatory changes that could impact future performance[31].