Latest news with #TCPC
Globe and Mail
2 days ago
- Business
- Globe and Mail
TCPC Earnings Miss Estimates
Key Points GAAP earnings per share from net investment income was $0.32 for Q2 2025, but Adjusted net investment income (non-GAAP) and GAAP revenue for Q2 2025 both missed analyst estimates. Non-accruals as a percentage of the portfolio decreased to 3.7% at fair value and 10.4% at cost for Q2 2025, down from 4.4% at fair value and 12.6% at cost in Q1 2025, improving asset quality, but Net asset value per share declined to $8.71 in Q2 2025 amid significant realized losses. Regular quarterly dividend maintained at $0.25 per share, with a $0.04 special dividend declared for Q3 2025, payable on September 30, 2025. These 10 stocks could mint the next wave of millionaires › BlackRock Tcp Capital (NASDAQ:TCPC), a business development company specializing in loans to middle-market companies, released its second quarter 2025 results on August 7, 2025. The most notable news from the release was that GAAP net investment income per share (EPS) was $0.32 for Q2 2025. However, Adjusted net investment income (non-GAAP) and GAAP total revenue for Q2 2025 both fell below analyst estimates. GAAP revenue was $51.5 million versus the $54.5 million consensus for Q2 2025. Key financial metrics declined compared to the prior year (Q2 2024), with adjusted net investment income (non-GAAP) down from $0.36 per share in Q1 2025, and GAAP revenue down from $71.5 million in Q2 2024. While the quarter reflected ongoing portfolio stress and lower net asset value, the company showed progress by reducing non-accruals in its loan book, with non-accruals declining to 3.7% of the portfolio at fair value in Q2 2025 from 4.4% in Q1 2025. Overall, the quarter presented a mix of challenges and positive developments as portfolio repositioning continued. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS – Net Investment Income $0.32 $0.32 $0.42 (23.8%) Revenue $51.5 million $54.5 million $71.5 million (28.0%) Net Asset Value per Share $8.71 Not provided N/A Net Increase (Decrease) in Net Assets from Operations $(0.19) $(0.60) −68.3% Debt Investments on Non-Accrual – % of Portfolio (Fair Value) 3.7% 5.6% (1.9 pp) Source: Analyst estimates for the quarter provided by FactSet. Business Overview and Recent Focus BlackRock Tcp Capital is a lender to performing middle-market companies, leaning heavily on senior secured loans for principal protection. Its business model emphasizes generating returns through interest from loans, origination fees, and occasional equity investments. The vast majority of its $1.8 billion portfolio as of June 30, 2025, is invested in senior secured debt (89.4%), with 82.4% of the total portfolio was first lien in Q2 2025. This focus targets companies with enterprise values between $100 million and $1.5 billion. Recent focus areas for the company include portfolio de-risking, actively reducing the share of non-performing loans, and strengthening its capital structure. The investment advisor, Tennenbaum Capital Partners (a BlackRock subsidiary), brings substantial experience, and aims to enhance portfolio quality through continual repositioning. Key success factors for the business are strong underwriting, disciplined leverage, and an adaptable approach to industry and sponsor relationships. Effective risk management and maintaining regulatory status as a Business Development Company (BDC) are also critical to its ongoing strategy. Quarterly Highlights and Key Developments During the quarter, Adjusted net investment income per share fell to $0.31 in Q2 2025, below the $0.32 non-GAAP analyst expectation and down from $0.38 per share (GAAP) in Q1 2025. Total investment income (GAAP) was $51.5 million in Q2 2025, missing the $54.5 million GAAP consensus and declining from $71.5 million in Q2 2024. Net asset value per share dropped to $8.71 in Q2 2025, down from $9.18 per share at March 31, 2025, and $9.23 per share at December 31, 2024. The company attributed these Q2 2025 declines mainly to markdowns on previously restructured portfolio companies, including losses recorded on SellerX, Khoros, InMoment, and Homerenew Buyer. Realized losses in Q2 2025 totaled $66.3 million on a GAAP basis, applying continued pressure to the balance sheet and earnings. A notable improvement came in portfolio quality: the share of assets on non-accrual status—meaning investments that are no longer generating current income—declined to 3.7% by fair value in Q2 2025, down from 4.4% in the prior quarter (Q1 2025) and 5.6% at December 31, 2024. At original cost, non-accruals dropped to 10.4% from 12.6% at cost in Q2 2025. The company invested $111.5 million in new credits during Q2 2025, with 91.6% of total investment acquisitions during Q2 2025 were in senior secured loans, while exiting approximately $47.9 million in investments during Q2 2025. New originations produced a weighted average effective annual yield of 10.8% versus 10.5% on assets that were exited during Q2 2025. The portfolio remains broad and granular, spread across 153 companies. Floating-rate debt comprised 93.8% of the credit book in Q2 2025, providing some insulation against further rate shifts. However, downward pressure on yields continued during the period. The weighted average annual effective yield of the debt portfolio slipped to 12.0% in Q2 2025, from 12.2% in Q1 2025 and 12.4% at December 31, 2024. Portfolio repositioning shifted investment toward more defensive senior secured loans. Capital structure and liquidity saw movement this quarter. Net leverage climbed to 1.28 times in Q2 2025, exceeding the usual target range of 0.9x to 1.2x in Q2 2025. Management explained this increase in net leverage in Q2 2025 as a result of late-quarter investments, delayed repayments, and a NAV decline. Available liquidity at quarter-end totaled $565.5 million in Q2 2025, drawn from leverage facilities and cash reserves. Notably, the company prepaid $92 million of 2025 notes on July 31, 2025, improving its near-term maturity profile and reducing future interest costs. Operating expenses (excluding interest) were 3.5% of average net assets on an annualized basis in Q2 2025. There were no material segment-level or product family breakouts, consistent with the company's focus on being a pure-play lender. However, the firm has continued to prioritize deals where it can be a lender of influence, distancing itself from complex, broadly syndicated group lending. Shareholder returns remain a significant focus. The company declared a Q3 2025 regular dividend of $0.25 per share and a $0.04 per share special dividend, both payable at the end of September 2025. The management fee waiver, amounting to $1.8 million in Q2 2025 and $3.6 million for the first half of 2025, supported net investment income during this transitional period. Share buyback activity was modest, with 43,980 shares repurchased at an average price of $6.85 during the six months ended June 30, 2025. Looking Ahead and Management Guidance Management did not offer specific financial guidance for future quarters or fiscal 2025. Instead, it described a focus on working through the remaining non-accrual loans and seeing through challenging restructurings. In commentary, it highlighted optimism regarding early signs of improvement in troubled investments. However, no explicit numerical guidance was provided for earnings or asset value targets. Portfolio repositioning, strategic capital deployment, and risk reduction remain priority themes for the near term. Shareholders will watch for progress in reducing non-accruals and resolving stressed credits. The portfolio's exposure to floating-rate loans, disciplined origination approach, and ongoing advisor fee waivers should help cushion earnings in the near term. The Q3 2025 regular dividend was maintained at $0.25 per share, and a special dividend of $0.04 per share was declared for Q3 2025, payable on September 30, 2025. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,047%* — a market-crushing outperformance compared to 181% for the S&P 500. 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Yahoo
2 days ago
- Business
- Yahoo
BlackRock TCP Capital Corp. Announces Second Quarter 2025 Financial Results Including Net Investment Income of $0.32 Per Share; Declares a Third Quarter Regular Dividend of $0.25 Per Share and a Special Dividend of $0.04 Per Share
SANTA MONICA, Calif., August 07, 2025--(BUSINESS WIRE)--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, 2025 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, 2025 was $27.6 million, or $0.32 per share on a diluted basis, which exceeded the regular dividend of $0.25 per share and special dividend of $0.04 per share on June 30, 2025. Excluding amortization of purchase discount recorded in connection with the Merger(1), adjusted net investment income(1) for the quarter ended June 30, 2025 was $26.3 million, or $0.31 per share on a diluted basis. Net asset value per share was $8.71 as of June 30, 2025 compared to $9.18 as of March 31, 2025, driven largely by markdowns on previously restructured portfolio companies. Net decrease in net assets from operations on a GAAP basis for the quarter ended June 30, 2025 was $15.9 million, or $0.19 per share, compared to a $20.9 million, or $0.25 per share, net increase in net assets from operations for the quarter ended March 31, 2025. As of June 30, 2025, debt investments on non-accrual status represented 3.7% of the portfolio at fair value and 10.4% at cost, compared to 4.4% of the portfolio at fair value and 12.6% at cost as of March 31, 2025. Total investment acquisitions and dispositions during the quarter ended June 30, 2025 were approximately $111.5 million and $47.9 million, respectively. As of June 30, 2025, net leverage was 1.28x compared to 1.13x at March 31, 2025. The increase was primarily due to the timing of new investments late in the quarter, a delay in expected repayments, and a decline in NAV. For the three months ended June 30, 2025, the Advisor waived $1.8 million in management fees, or $0.02 per share. For the six months ended June 30, 2025, the Advisor waived $3.6 million in management fees, or $0.04 per share. On August 7, 2025, our Board of Directors declared a third quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share, both payable on September 30, 2025 to stockholders of record as of the close of business on September 16, 2025. "We made solid progress in reducing non-accruals, which declined to 3.7% of the portfolio's fair market value in the second quarter, down from 4.4% last quarter and 5.6% at the end of 2024," said Phil Tseng, Chairman, Co-CIO, and CEO of BlackRock TCP Capital Corp. "While net asset value declined, this was driven by markdowns on previously restructured investments rather than new credit issues. We are actively engaged with these portfolio companies and focused on optimizing outcomes for our shareholders. At the same time, we continue to selectively deploy capital into attractive investment opportunities that align with our stated strategy and our objective of returning our portfolio to historical performance levels." SELECTED FINANCIAL HIGHLIGHTS(1) Three months ended June 30, 2025 2024 Amount Per Share Amount Per Share Net investment income $ 27,594,675 0.32 $ 35,825,532 0.42 Less: Purchase accounting discount amortization 1,293,521 0.01 3,694,506 0.04 Adjusted net investment income $ 26,301,154 0.31 $ 32,131,026 0.38 Net realized and unrealized gain (loss) $ (43,501,259 ) (0.51 ) $ (87,102,049 ) (1.02 ) Less: Realized gain (loss) due to the allocation of purchase discount 4,000,208 0.05 5,187,625 0.06 Less: Net change in unrealized appreciation (depreciation) due to the allocation of purchase discount (5,293,729 ) (0.06 ) (8,882,131 ) (0.10 ) Adjusted net realized and unrealized gain (loss) $ (42,207,738 ) (0.50 ) $ (83,407,543 ) (0.98 ) Net increase (decrease) in net assets resulting from operations $ (15,906,584 ) (0.19 ) $ (51,276,517 ) (0.60 ) Less: Purchase accounting discount amortization 1,293,521 0.01 3,694,506 0.04 Less: Realized gain (loss) due to the allocation of purchase discount 4,000,208 0.05 5,187,625 0.06 Less: Net change in unrealized appreciation (depreciation) due to the allocation of purchase discount (5,293,729 ) (0.06 ) (8,882,131 ) (0.10 ) Adjusted net increase (decrease) in assets resulting from operations $ (15,906,584 ) (0.19 ) $ (51,276,517 ) (0.60 ) (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, 2025, our consolidated investment portfolio consisted of debt and equity positions in 153 portfolio companies with a total fair value of approximately $1.8 billion, of which 89.4% was in senior secured debt. 82.4% of the total portfolio was first lien. Equity positions, which include equity interests in diversified portfolios of debt, represented approximately 10.6% of the portfolio. 93.8% of our debt investments were floating rate, 96.9% of which had interest rate floors. As of June 30, 2025, the weighted average annual effective yield of our debt portfolio was approximately 12.0%(1) and the weighted average annual effective yield of our total portfolio was approximately 10.6%, compared with 12.2% and 10.8%, respectively, as of March 31, 2025. Debt investments in eight portfolio companies were on non-accrual status as of June 30, 2025, representing 3.7% of the consolidated portfolio at fair value and 10.4% at cost. During the three months ended June 30, 2025, we invested approximately $111.5 million, comprised of new investments in 11 new and 2 existing portfolio companies. Of these investments, $102.2 million, or 91.6% of total acquisitions, were in senior secured loans. The remaining $9.3 million, or 8.4% of total acquisitions, were comprised of equity investments. Additionally, we received approximately $47.9 million in proceeds from sales or repayments of investments during the three months ended June 30, 2025. New investments during the quarter had a weighted average effective yield of 10.8%. Investments we exited had a weighted average effective yield of 10.5%. As of June 30, 2025, total assets were $1.9 billion, net assets were $740.5 million and net asset value per share was $8.71, as compared to $1.9 billion, $781.3 million, and $9.18 per share, respectively, as of March 31, 2025. __________________________ (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, 2025 was approximately $51.5 million, or $0.61 per share. Investment income for the three months ended June 30, 2025 included $0.01 per share from prepayment premiums and related accelerated original issue discount and exit fee amortization, $0.03 per share from recurring portfolio investment original issue discount and exit fee amortization, $0.07 per share from interest income paid in kind and $0.02 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, 2025 were approximately $23.9 million, or $0.28 per share, including interest and other debt expenses of $17.1 million, or $0.20 per share, base management fees of $5.5 million, or $0.06 per share, offset by $1.8 million in management fee waiver, or $0.02 per share. As of June 30, 2025, the Company's cumulative total return did not exceed the total return hurdle, and as a result, no incentive compensation was accrued for the three months ended June 30, 2025. Excluding interest and other debt expenses, annualized second quarter expenses were 3.5% of average net assets. Net investment income for the three months ended June 30, 2025 was approximately $27.6 million, or $0.32 per share. Net realized loss for the three months ended June 30, 2025 was $66.3 million, or $0.78 per share. Net realized loss for the three months ended June 30, 2025 was comprised primarily of $23.8 million, $22.5 million, $11.1 million, and $10.7 million in losses from the restructuring of our investments in SellerX, Khoros, InMoment, and Homerenew Buyer, respectively. Net unrealized gain for the three months ended June 30, 2025 was $22.8 million, or $0.27 per share. Net unrealized gain for the three months ended June 30, 2025 primarily reflects $23.1 million, $20.3 million, $9.5 million and $7.7 million reversals of previously recognized unrealized losses from the restructuring of our investments in Khoros, SellerX, Renovo and InMoment, respectively, partially offset by a $9.6 million unrealized loss on our investment in AutoAlert, a $5.9 million unrealized loss on our investment in Brook & Whittle, a $4.7 million unrealized loss on our investment in 36th Street Capital, a $4.1 million unrealized loss on our investment in NEP Group, and a $4.1 million unrealized loss on our investment in Alpine. Net decrease in net assets resulting from operations for the three months ended June 30, 2025 was $15.9 million, or $0.19 per share. LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2025, available liquidity was approximately $565.5 million, comprised of approximately $455.0 million in available capacity under our leverage program, $107.3 million in cash and cash equivalents and $3.2 million in net receivable for investments sold. The combined weighted-average interest rate on debt outstanding at June 30, 2025 was 5.26%. Total debt outstanding at June 30, 2025, including debt assumed as a result of the Merger, was as follows: Debt, net of unamortized issuance costs Maturity Rate Carrying Value (1) Available Total Capacity Operating Facility 2029 SOFR+2.00% (2) $ 202,000,000 $ 98,000,000 $ 300,000,000 (3) Funding Facility II 2027 SOFR+2.05% (4) 100,000,000 100,000,000 200,000,000 (5) Merger Sub Facility(6) 2028 SOFR+2.00% (7) 18,000,000 247,000,000 265,000,000 (8) SBA Debentures 2025−2031 2.45% (9) 122,000,000 10,000,000 132,000,000 2025 Notes ($92 million par)(6) 2025 Fixed/Variable (10) 92,000,000 — 92,000,000 2026 Notes ($325 million par) 2026 2.85% 325,198,700 — 325,198,700 2029 Notes ($325 million par) 2029 6.95% 322,065,294 — 322,065,294 Total leverage 1,181,263,994 $ 455,000,000 $ 1,636,263,994 Unamortized issuance costs (6,623,403 ) Debt, net of unamortized issuance costs $ 1,174,640,591 __________________________ (1) Except for the 2026 Notes and 2029 Notes, all carrying values are the same as the principal amounts outstanding. (2) The outstanding amount was subject to a SOFR credit adjustment of 0.10%. (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, 2025, approximately $0.5 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. The Company Repurchase Plan was re-approved on April 29, 2025, to be in effect through the earlier of April 30, 2026, unless further extended or terminated by the Company's Board of Directors, or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions. The following table summarizes the total shares repurchased and amounts paid by the Company under the Company Repurchase Plan, including broker fees, for the six months ended June 30, 2025: Shares Repurchased Price Per Share* Total Cost Company Repurchase Plan 43,980 $ 6.85 $ 301,378 RECENT DEVELOPMENTS On July 1, 2025, BlackRock, Inc. completed its previously announced acquisition of 100% of the business and assets of HPS Investment Partners ("HPS"), a leading global credit investment manager (the "Acquisition"). In connection with the Acquisition, certain senior personnel of HPS joined the Adviser's investment committee for the Company's portfolio as voting members. As of July 1, 2025, the voting members of the Adviser's investment committee for the Company are Philip Tseng, Jason Mehring, Dan Worrell, Rob DiPaolo, Vikas Keswani, Michael Fenstermacher, and Grishma Parekh. On July 21, 2025, the Company caused notices to be issued to the holders of the 2025 Notes regarding the Company's exercise of its option to prepay $35,000,000 in aggregate principal amount of issued and outstanding 6.85% Series 2022A Senior Notes, Tranche A, due December 9, 2025 (the "Tranche A Notes") and $57,000,000 in aggregate principal amount of issued and outstanding Floating Rate Series 2022A Senior Notes, Tranche B due December 9, 2025 (the "Tranche B Notes"), which represent the entire amount of the 2025 Notes outstanding, pursuant to the terms of the Master Note Purchase Agreement, dated as of April 21, 2022, among BCIC and certain institutional investors (as amended, supplemented or otherwise modified from time to time, the "Note Purchase Agreement"). The Company prepaid all $35,000,000 in aggregate principal amount of the Tranche A Notes and $57,000,000 in aggregate principal amount of the Tranche B Notes on July 31, 2025, at 100% of their principal amount, plus the accrued and unpaid interest thereon in accordance with the terms of the Note Purchase Agreement. On July 31, 2025, TCPC Funding II entered into a Sixth Amendment to the Loan and Servicing Agreement (the "Sixth Amendment") among TCPC Funding II, as borrower, SVCP, as servicer, Morgan Stanley Asset Funding Inc., as administrative agent and Morgan Stanley Bank, N.A. and City National Bank, as lenders. The Sixth Amendment amends Funding Facility II to extend the revolving period from August 4, 2025, to July 31, 2027, and incorporates certain other changes set forth in the Sixth Amendment. On August 7, 2025, our Board of Directors declared a third quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share, both payable on September 30, 2025 to stockholders of record as of the close of business on September 16, 2025. CONFERENCE CALL AND WEBCAST BlackRock TCP Capital Corp. will host a conference call on Thursday, August 7, 2025 at 12:00 p.m. Eastern Time (9:00 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 311460. For a slide presentation that we intend to refer to on the earnings conference call, please visit the Investor Relations section of our website ( and click on the Second Quarter 2025 Investor Presentation under Events and Presentations. The conference call will be webcast simultaneously in the investor relations section of our website at An archived replay of the call will be available approximately two hours after the live call, through August 14, 2025. For the replay, please visit or dial (866) 813-9403. For international replay, please dial (929) 458-6194. For all replays, please reference access code 746213. BlackRock TCP Capital Corp. Consolidated Statements of Assets and Liabilities June 30, 2025 December 31, 2024 (unaudited) Assets Investments, at fair value: Non-controlled, non-affiliated investments (cost of $1,678,142,294 and $1,737,804,418, respectively) $ 1,572,754,933 $ 1,565,603,753 Non-controlled, affiliated investments (cost of $60,684,317 and $59,606,472, respectively) 48,240,284 49,444,695 Controlled investments (cost of $225,604,659 and $221,803,172, respectively) 171,339,626 179,709,888 Total investments (cost of $1,964,431,270 and $2,019,214,062, respectively) 1,792,334,843 1,794,758,336 Cash and cash equivalents 107,317,578 91,589,702 Interest, dividends and fees receivable 22,972,092 22,784,825 Receivable for investments sold 8,240,705 4,487,697 Deferred debt issuance costs 4,968,000 6,235,009 Due from broker — 817,969 Prepaid expenses and other assets 1,135,382 2,357,825 Total assets 1,936,968,600 1,923,031,363 Liabilities Debt (net of deferred issuance costs of $6,623,403 and $7,974,601, respectively) 1,174,640,591 1,118,340,225 Interest and debt related payables 8,515,799 8,306,126 Payable for investments purchased 5,018,897 99,494 Management fees payable 3,486,216 5,750,971 Reimbursements due to the Advisor 1,395,800 932,224 Interest Rate Swap, at fair value — 731,830 Accrued expenses and other liabilities 3,434,359 3,746,826 Total liabilities 1,196,491,662 1,137,907,696 Net assets $ 740,476,938 $ 785,123,667 Composition of net assets applicable to common shareholders Common stock, $0.001 par value; 200,000,000 shares authorized, 85,036,467 and 85,080,447 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively $ 85,036 $ 85,080 Paid-in capital in excess of par 1,730,756,125 1,731,057,459 Distributable earnings (loss) (990,364,223 ) (946,018,872 ) Total net assets 740,476,938 785,123,667 Total liabilities and net assets $ 1,936,968,600 $ 1,923,031,363 Net assets per share $ 8.71 $ 9.23 BlackRock TCP Capital Corp. Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Investment income (unaudited) (unaudited) (unaudited) (unaudited) Interest income (excluding PIK): Non-controlled, non-affiliated investments $ 41,609,217 $ 63,562,637 $ 85,065,954 $ 112,208,830 Non-controlled, affiliated investments 338,648 384,684 676,647 732,319 Controlled investments 2,270,542 2,696,570 4,579,811 5,555,650 PIK interest income: Non-controlled, non-affiliated investments 5,449,424 2,034,356 11,238,339 4,440,033 Non-controlled, affiliated investments — — — 92,675 Controlled investments 394,202 353,752 1,075,763 703,721 Dividend income: Non-controlled, non-affiliated investments 449,575 594,372 885,526 906,696 Non-controlled, affiliated investments 213,493 1,018,486 1,222,550 1,732,189 Controlled investments 738,497 878,075 2,607,357 878,075 Other income: Non-controlled, non-affiliated investments 1,399 3,293 1,965 5,346 Total investment income 51,464,997 71,526,225 107,353,912 127,255,534 Operating expenses Interest and other debt expenses 17,087,833 19,726,829 34,172,466 32,957,053 Management fees 5,461,118 6,563,189 10,944,962 12,382,694 Professional fees 947,452 681,923 1,814,899 1,601,599 Administrative expenses 509,930 594,208 1,151,394 1,155,211 Insurance expense 218,463 205,953 436,926 351,066 Director fees 192,500 197,500 385,000 414,219 Custody fees 91,348 99,145 184,533 189,065 Incentive fees — 6,815,672 — 12,696,050 Other operating expenses 1,182,050 816,274 2,114,708 1,421,772 Total operating expenses, before management fee waiver 25,690,694 35,700,693 51,204,888 63,168,729 Management fee waiver (1,820,372 ) — (3,648,320 ) — Total operating expenses, after management fee waiver 23,870,322 35,700,693 47,556,568 63,168,729 Net investment income 27,594,675 35,825,532 59,797,344 64,086,805 Realized and unrealized gain (loss) on investments and foreign currency Net realized gain (loss): Non-controlled, non-affiliated investments (66,287,884 ) (22,703,792 ) (107,205,222 ) (22,871,869 ) Non-controlled, affiliated investments — (12,810,138 ) — (12,810,138 ) Interest Rate Swap (9,491 ) — (9,491 ) — Net realized gain (loss) (66,297,375 ) (35,513,930 ) (107,214,713 ) (35,682,007 ) Net change in unrealized appreciation (depreciation) (1): Non-controlled, non-affiliated investments 40,313,699 (57,619,007 ) 66,868,692 (63,771,066 ) Non-controlled, affiliated investments (3,203,412 ) 8,310,670 (2,282,254 ) (6,067,358 ) Controlled investments (14,296,084 ) (2,137,940 ) (12,171,749 ) (4,650,847 ) Interest Rate Swap (18,087 ) (141,842 ) (9,316 ) (134,903 ) Net change in unrealized appreciation (depreciation) 22,796,116 (51,588,119 ) 52,405,373 (74,624,174 ) Net realized and unrealized gain (loss) (43,501,259 ) (87,102,049 ) (54,809,340 ) (110,306,181 ) Net increase (decrease) in net assets resulting from operations $ (15,906,584 ) $ (51,276,517 ) $ 4,988,004 $ (46,219,376 ) Basic and diluted earnings (loss) per share $ (0.19 ) $ (0.60 ) $ 0.06 $ (0.63 ) Basic and diluted weighted average common shares outstanding 85,042,931 85,591,134 85,060,179 73,819,497 (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, an indirect subsidiary of BlackRock, Inc. For more information, visit 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 and the company's website at 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, 2024, 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) risks related to the retention of the personnel of TCPC's advisor; (iv) changes in the economy, financial markets and political environment; (v) 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 and the conflict in the Middle East), trade protection or trade wars, natural disasters or public health crises and epidemics; (vi) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (vii) conditions in TCPC's operating areas, particularly with respect to business development companies or regulated investment companies; and (viii) 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 and the Company's website at 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 Contacts BlackRock TCP Capital Doll & Anders Engdahl(310) Sign in to access your portfolio
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2 days ago
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- Business Wire
BlackRock TCP Capital Corp. Announces Second Quarter 2025 Financial Results Including Net Investment Income of $0.32 Per Share; Declares a Third Quarter Regular Dividend of $0.25 Per Share and a Special Dividend of $0.04 Per Share
SANTA MONICA, Calif.--(BUSINESS WIRE)--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, 2025 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, 2025 was $27.6 million, or $0.32 per share on a diluted basis, which exceeded the regular dividend of $0.25 per share and special dividend of $0.04 per share on June 30, 2025. Excluding amortization of purchase discount recorded in connection with the Merger (1), adjusted net investment income (1) for the quarter ended June 30, 2025 was $26.3 million, or $0.31 per share on a diluted basis. Net asset value per share was $8.71 as of June 30, 2025 compared to $9.18 as of March 31, 2025, driven largely by markdowns on previously restructured portfolio companies. Net decrease in net assets from operations on a GAAP basis for the quarter ended June 30, 2025 was $15.9 million, or $0.19 per share, compared to a $20.9 million, or $0.25 per share, net increase in net assets from operations for the quarter ended March 31, 2025. As of June 30, 2025, debt investments on non-accrual status represented 3.7% of the portfolio at fair value and 10.4% at cost, compared to 4.4% of the portfolio at fair value and 12.6% at cost as of March 31, 2025. Total investment acquisitions and dispositions during the quarter ended June 30, 2025 were approximately $111.5 million and $47.9 million, respectively. As of June 30, 2025, net leverage was 1.28x compared to 1.13x at March 31, 2025. The increase was primarily due to the timing of new investments late in the quarter, a delay in expected repayments, and a decline in NAV. For the three months ended June 30, 2025, the Advisor waived $1.8 million in management fees, or $0.02 per share. For the six months ended June 30, 2025, the Advisor waived $3.6 million in management fees, or $0.04 per share. On August 7, 2025, our Board of Directors declared a third quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share, both payable on September 30, 2025 to stockholders of record as of the close of business on September 16, 2025. 'We made solid progress in reducing non-accruals, which declined to 3.7% of the portfolio's fair market value in the second quarter, down from 4.4% last quarter and 5.6% at the end of 2024,' said Phil Tseng, Chairman, Co-CIO, and CEO of BlackRock TCP Capital Corp. 'While net asset value declined, this was driven by markdowns on previously restructured investments rather than new credit issues. We are actively engaged with these portfolio companies and focused on optimizing outcomes for our shareholders. At the same time, we continue to selectively deploy capital into attractive investment opportunities that align with our stated strategy and our objective of returning our portfolio to historical performance levels.' (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. As of June 30, 2025, our consolidated investment portfolio consisted of debt and equity positions in 153 portfolio companies with a total fair value of approximately $1.8 billion, of which 89.4% was in senior secured debt. 82.4% of the total portfolio was first lien. Equity positions, which include equity interests in diversified portfolios of debt, represented approximately 10.6% of the portfolio. 93.8% of our debt investments were floating rate, 96.9% of which had interest rate floors. As of June 30, 2025, the weighted average annual effective yield of our debt portfolio was approximately 12.0% (1) and the weighted average annual effective yield of our total portfolio was approximately 10.6%, compared with 12.2% and 10.8%, respectively, as of March 31, 2025. Debt investments in eight portfolio companies were on non-accrual status as of June 30, 2025, representing 3.7% of the consolidated portfolio at fair value and 10.4% at cost. During the three months ended June 30, 2025, we invested approximately $111.5 million, comprised of new investments in 11 new and 2 existing portfolio companies. Of these investments, $102.2 million, or 91.6% of total acquisitions, were in senior secured loans. The remaining $9.3 million, or 8.4% of total acquisitions, were comprised of equity investments. Additionally, we received approximately $47.9 million in proceeds from sales or repayments of investments during the three months ended June 30, 2025. New investments during the quarter had a weighted average effective yield of 10.8%. Investments we exited had a weighted average effective yield of 10.5%. As of June 30, 2025, total assets were $1.9 billion, net assets were $740.5 million and net asset value per share was $8.71, as compared to $1.9 billion, $781.3 million, and $9.18 per share, respectively, as of March 31, 2025. Total investment income for the three months ended June 30, 2025 was approximately $51.5 million, or $0.61 per share. Investment income for the three months ended June 30, 2025 included $0.01 per share from prepayment premiums and related accelerated original issue discount and exit fee amortization, $0.03 per share from recurring portfolio investment original issue discount and exit fee amortization, $0.07 per share from interest income paid in kind and $0.02 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, 2025 were approximately $23.9 million, or $0.28 per share, including interest and other debt expenses of $17.1 million, or $0.20 per share, base management fees of $5.5 million, or $0.06 per share, offset by $1.8 million in management fee waiver, or $0.02 per share. As of June 30, 2025, the Company's cumulative total return did not exceed the total return hurdle, and as a result, no incentive compensation was accrued for the three months ended June 30, 2025. Excluding interest and other debt expenses, annualized second quarter expenses were 3.5% of average net assets. Net investment income for the three months ended June 30, 2025 was approximately $27.6 million, or $0.32 per share. Net realized loss for the three months ended June 30, 2025 was $66.3 million, or $0.78 per share. Net realized loss for the three months ended June 30, 2025 was comprised primarily of $23.8 million, $22.5 million, $11.1 million, and $10.7 million in losses from the restructuring of our investments in SellerX, Khoros, InMoment, and Homerenew Buyer, respectively. Net unrealized gain for the three months ended June 30, 2025 was $22.8 million, or $0.27 per share. Net unrealized gain for the three months ended June 30, 2025 primarily reflects $23.1 million, $20.3 million, $9.5 million and $7.7 million reversals of previously recognized unrealized losses from the restructuring of our investments in Khoros, SellerX, Renovo and InMoment, respectively, partially offset by a $9.6 million unrealized loss on our investment in AutoAlert, a $5.9 million unrealized loss on our investment in Brook & Whittle, a $4.7 million unrealized loss on our investment in 36th Street Capital, a $4.1 million unrealized loss on our investment in NEP Group, and a $4.1 million unrealized loss on our investment in Alpine. Net decrease in net assets resulting from operations for the three months ended June 30, 2025 was $15.9 million, or $0.19 per share. LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2025, available liquidity was approximately $565.5 million, comprised of approximately $455.0 million in available capacity under our leverage program, $107.3 million in cash and cash equivalents and $3.2 million in net receivable for investments sold. The combined weighted-average interest rate on debt outstanding at June 30, 2025 was 5.26%. Total debt outstanding at June 30, 2025, including debt assumed as a result of the Merger, was as follows: __________________________ (1) Except for the 2026 Notes and 2029 Notes, all carrying values are the same as the principal amounts outstanding. (2) The outstanding amount was subject to a SOFR credit adjustment of 0.10%. (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%. Expand 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, 2025, approximately $0.5 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. The Company Repurchase Plan was re-approved on April 29, 2025, to be in effect through the earlier of April 30, 2026, unless further extended or terminated by the Company's Board of Directors, or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions. The following table summarizes the total shares repurchased and amounts paid by the Company under the Company Repurchase Plan, including broker fees, for the six months ended June 30, 2025: On July 1, 2025, BlackRock, Inc. completed its previously announced acquisition of 100% of the business and assets of HPS Investment Partners ('HPS'), a leading global credit investment manager (the 'Acquisition'). In connection with the Acquisition, certain senior personnel of HPS joined the Adviser's investment committee for the Company's portfolio as voting members. As of July 1, 2025, the voting members of the Adviser's investment committee for the Company are Philip Tseng, Jason Mehring, Dan Worrell, Rob DiPaolo, Vikas Keswani, Michael Fenstermacher, and Grishma Parekh. On July 21, 2025, the Company caused notices to be issued to the holders of the 2025 Notes regarding the Company's exercise of its option to prepay $35,000,000 in aggregate principal amount of issued and outstanding 6.85% Series 2022A Senior Notes, Tranche A, due December 9, 2025 (the 'Tranche A Notes') and $57,000,000 in aggregate principal amount of issued and outstanding Floating Rate Series 2022A Senior Notes, Tranche B due December 9, 2025 (the 'Tranche B Notes'), which represent the entire amount of the 2025 Notes outstanding, pursuant to the terms of the Master Note Purchase Agreement, dated as of April 21, 2022, among BCIC and certain institutional investors (as amended, supplemented or otherwise modified from time to time, the 'Note Purchase Agreement'). The Company prepaid all $35,000,000 in aggregate principal amount of the Tranche A Notes and $57,000,000 in aggregate principal amount of the Tranche B Notes on July 31, 2025, at 100% of their principal amount, plus the accrued and unpaid interest thereon in accordance with the terms of the Note Purchase Agreement. On July 31, 2025, TCPC Funding II entered into a Sixth Amendment to the Loan and Servicing Agreement (the 'Sixth Amendment') among TCPC Funding II, as borrower, SVCP, as servicer, Morgan Stanley Asset Funding Inc., as administrative agent and Morgan Stanley Bank, N.A. and City National Bank, as lenders. The Sixth Amendment amends Funding Facility II to extend the revolving period from August 4, 2025, to July 31, 2027, and incorporates certain other changes set forth in the Sixth Amendment. On August 7, 2025, our Board of Directors declared a third quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share, both payable on September 30, 2025 to stockholders of record as of the close of business on September 16, 2025. CONFERENCE CALL AND WEBCAST BlackRock TCP Capital Corp. will host a conference call on Thursday, August 7, 2025 at 12:00 p.m. Eastern Time (9:00 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 311460. For a slide presentation that we intend to refer to on the earnings conference call, please visit the Investor Relations section of our website ( and click on the Second Quarter 2025 Investor Presentation under Events and Presentations. The conference call will be webcast simultaneously in the investor relations section of our website at An archived replay of the call will be available approximately two hours after the live call, through August 14, 2025. For the replay, please visit or dial (866) 813-9403. For international replay, please dial (929) 458-6194. For all replays, please reference access code 746213. BlackRock TCP Capital Corp. Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Investment income (unaudited) (unaudited) (unaudited) (unaudited) Interest income (excluding PIK): Non-controlled, non-affiliated investments $ 41,609,217 $ 63,562,637 $ 85,065,954 $ 112,208,830 Non-controlled, affiliated investments 338,648 384,684 676,647 732,319 Controlled investments 2,270,542 2,696,570 4,579,811 5,555,650 PIK interest income: Non-controlled, non-affiliated investments 5,449,424 2,034,356 11,238,339 4,440,033 Non-controlled, affiliated investments — — — 92,675 Controlled investments 394,202 353,752 1,075,763 703,721 Dividend income: Non-controlled, non-affiliated investments 449,575 594,372 885,526 906,696 Non-controlled, affiliated investments 213,493 1,018,486 1,222,550 1,732,189 Controlled investments 738,497 878,075 2,607,357 878,075 Other income: Non-controlled, non-affiliated investments 1,399 3,293 1,965 5,346 Total investment income 51,464,997 71,526,225 107,353,912 127,255,534 Operating expenses Interest and other debt expenses 17,087,833 19,726,829 34,172,466 32,957,053 Management fees 5,461,118 6,563,189 10,944,962 12,382,694 Professional fees 947,452 681,923 1,814,899 1,601,599 Administrative expenses 509,930 594,208 1,151,394 1,155,211 Insurance expense 218,463 205,953 436,926 351,066 Director fees 192,500 197,500 385,000 414,219 Custody fees 91,348 99,145 184,533 189,065 Incentive fees — 6,815,672 — 12,696,050 Other operating expenses 1,182,050 816,274 2,114,708 1,421,772 Total operating expenses, before management fee waiver 25,690,694 35,700,693 51,204,888 63,168,729 Management fee waiver (1,820,372 ) — (3,648,320 ) — Total operating expenses, after management fee waiver 23,870,322 35,700,693 47,556,568 63,168,729 Net investment income 27,594,675 35,825,532 59,797,344 64,086,805 Realized and unrealized gain (loss) on investments and foreign currency Net realized gain (loss): Non-controlled, non-affiliated investments (66,287,884 ) (22,703,792 ) (107,205,222 ) (22,871,869 ) Non-controlled, affiliated investments — (12,810,138 ) — (12,810,138 ) Interest Rate Swap (9,491 ) — (9,491 ) — Net realized gain (loss) (66,297,375 ) (35,513,930 ) (107,214,713 ) (35,682,007 ) Net change in unrealized appreciation (depreciation) (1): Non-controlled, non-affiliated investments 40,313,699 (57,619,007 ) 66,868,692 (63,771,066 ) Non-controlled, affiliated investments (3,203,412 ) 8,310,670 (2,282,254 ) (6,067,358 ) Controlled investments (14,296,084 ) (2,137,940 ) (12,171,749 ) (4,650,847 ) Interest Rate Swap (18,087 ) (141,842 ) (9,316 ) (134,903 ) Net change in unrealized appreciation (depreciation) 22,796,116 (51,588,119 ) 52,405,373 (74,624,174 ) Net realized and unrealized gain (loss) (43,501,259 ) (87,102,049 ) (54,809,340 ) (110,306,181 ) Net increase (decrease) in net assets resulting from operations $ (15,906,584 ) $ (51,276,517 ) $ 4,988,004 $ (46,219,376 ) Basic and diluted earnings (loss) per share $ (0.19 ) $ (0.60 ) $ 0.06 $ (0.63 ) Basic and diluted weighted average common shares outstanding 85,042,931 85,591,134 85,060,179 73,819,497 (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. Expand 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, an indirect subsidiary of BlackRock, Inc. For more information, visit 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 and the company's website at 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, 2024, 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) risks related to the retention of the personnel of TCPC's advisor; (iv) changes in the economy, financial markets and political environment; (v) 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 and the conflict in the Middle East), trade protection or trade wars, natural disasters or public health crises and epidemics; (vi) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (vii) conditions in TCPC's operating areas, particularly with respect to business development companies or regulated investment companies; and (viii) 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 and the Company's website at 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.
Business Wire
10-07-2025
- Business
- Business Wire
BlackRock TCP Capital Corp. to Report Second Quarter Ended June 30, 2025 Financial Results on August 7, 2025
SANTA MONICA, Calif.--(BUSINESS WIRE)--BlackRock TCP Capital Corp. (NASDAQ: TCPC) announced today that it will report its financial results for the second quarter ended June 30, 2025 on Thursday, August 7, 2025, prior to the opening of the financial markets. BlackRock TCP Capital Corp. will also host a conference call at 12:00 p.m. Eastern Time (9:00 a.m. Pacific Time) on Thursday, August 7, 2025, 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 311460. The conference call will be webcast simultaneously in the investor relations section of TCPC's website at An archived replay of the call will be available approximately two hours after the live call, through August 14, 2025. For the replay, please visit or dial (866) 813-9403. For international replay, please dial (929) 458-6194. For all replays, please reference access code 746213. 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 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 and the Company's website at 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, 2024, and the Company's subsequent periodic filings with the SEC. Copies are available on the SEC's website at and the Company's website at 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.
Forbes
15-06-2025
- Business
- Forbes
Private Equity For The People: 3 High-Yield BDCs Yielding Up To 13%
Dark orange glowing wireframe bull on stock market diagram background Let's invest like private equity pros without needing seven figures. Yes, that's right—PE-style starting for as little as $8. Plus, yields up to nearly 13%. No special access or options trades needed. Just a few clicks through our brokerage accounts buying regular ol' tickers. The sneaky dividend-dishing subjects? Meet business development companies (BDCs), publicly-traded firms that lend to small businesses. BDCs were invented by Congress years ago to create a new type of lender to small businesses. They were also given the same mandate as real estate investment trusts (REITs): Return at least 90% of taxable income back to shareholders in the form of dividends. And man, do they pay or what? BDC Yields Let's dive into three compelling BDCs that not only dish big dividends but also trade for less than the sum of their parts. BlackRock TCP Capital Corp. (TCPC) is a middle-market lender that favors middle-market companies with enterprise values of between $100 million and $1.5 billion. It has a fairly diverse portfolio of 146 companies across several 'less-cyclical' industries. TCPC's investment mix is heaviest in first-lien debt, at 83% of the portfolio; second-lien debt is another 7%, and 10% of its deals (at fair value) are in equity. The vast majority of its debt (94%) is floating-rate in nature, which is typical for many BDCs. That has its upsides and downsides. In a normal rising-rate environment (think 2015-19, not 2022-23), rising rates are generally good for BDCs that work heavily with floating-rate debt. The potential for declining rates (or actually declining rates)? Not so good. Also, as one might have guessed, TCPC has a connection to BlackRock (BLK)—specifically, it's externally managed by an indirect, wholly owned subsidiary of BlackRock (BLK). This connection allows it to access BlackRock's many resources, which in theory should make it a particularly competitive BDC. TCPC Total Returns I warned in November 2024 that BlackRock TCPC keeping its base dividend flat for a fifth consecutive quarter raised 'a little concern that TCPC's dividend might be plateauing.' Three months later, the BDC pulled the rug out from under its investors with a drastic dividend cut. That's despite a practice of pairing its base dividend with special dividends as profits allow. BlackRock TCPC's declines have opened up a generous 13% discount to NAV. And even with the reduced 25-cent-per-share base dividend (and an already announced 4-cent special dividend for Q1), the stock still yields a sky-high 13%. But TCPC hasn't exactly fixed what got it here. The dividend is more affordable, and the company's adviser is waiving a third of its fee through Q3. But it's still thick in non-accruals (loans that are delinquent for a prolonged period, usually 90 days), which even after improving this past quarter sit at an elevated 12.6% and 4.4% of the portfolio at cost and at fair value, respectively. Crescent Capital BDC (CCAP) is another BDC that's paired with (and enjoys the resources of) a larger investment company. Crescent Capital BDC is tied to global credit investment firm Crescent Capital Group, which itself specializes in below-investment-grade credit strategies. CCAP currently invests in 191 portfolio companies, with a penchant for private middle market companies. It's predominantly U.S.-focused, though it does have 9% portfolio exposure to Europe and a thin 2% exposure to Australian companies. It's similar to TCPC in that it primarily deals in first-lien debt (91%), and the vast majority (97%) is floating-rate in nature. The last time I looked at CCAP, I mentioned that it has quite the oddball dividend history: I'm afraid the dividend picture hasn't become any less complicated since then. Crescent Capital has kept up with its 42-cent-per-share base dividend. But the action in its special dividends has changed. The variable supplemental dividends, which had been around for six quarters, disappeared at the start of this year. At the same time, CCAP announced 5-cent specials for the first, second, and third quarters—but they're related to undistributed taxable income. So while it looks like CCAP's variable supplemental has just gotten a little smaller, in reality, it's not paying any supplementals (or, at least, it hasn't for the past two quarters). Those supplementals might not return for some time, either. Wall Street is increasingly worried about rate compression among BDCs, for one. CCAP itself, meanwhile, is running into increasing credit issues, a spate of new non-accruals, and the winding-down of the Logan joint venture, which was providing CCAP with some cash flows. At least investors are being realistic about Crescent Capital's dimming prospects of late, driving shares down to a wild 23% discount to NAV. This normally defensively positioned BDC hardly looks like the pinnacle of health right now, but a discount that deep (plus an 11% yield on the base dividend alone) could attract some bargain hunters. I'll start with PennantPark Floating Rate Capital (PFLT), which targets midsized companies that are 'profitable, growing and cash-flowing,' with a specific focus on firms that generate $10 million to $50 million in annual earnings before interest, taxes, depreciation and amortization (EBITDA). Currently, PFLT's portfolio is 190 companies wide, and those 190 companies are supported by roughly 110 private equity sponsors. And while some BDCs are happy to invest in a wide variety of companies, 'value-added' BDCs that lend expertise tend to be more selective. In this case, PennantPark Floating Rate's interests lie in five primary categories: health care, software and technology, consumer, business services and government services. Most important, however, is what gives PennantPark Floating Rate Capital its name. While BDCs often deal with floating-rate first-lien debt, PFLT takes it to the max: About 90% of the portfolio is first-lien debt, virtually all of which is floating-rate in nature. (The remaining 10% is split 80/20 between equity co-investments and joint venture equity.) As I mentioned before, the Fed's flattening and eventual reduction in interest rates took a toll on many BDCs. PFLT Total Returns PFLT trades at a 6% discount to NAV; that's nice, but it almost feels like an optimistic valuation given the uncertainty facing the rate environment and PennantPark right now. On the upside, PFLT is actually a monthly dividend payer, and a generous one, too, at nearly 12%. On the downside, coverage of that dividend is getting awfully tight. In fiscal 2024 (its year ends in September), PFLT paid $1.23 per share on net interest income of $1.27 per share (a 97% NII payout ratio), generated from profits of $1.18 per share. It's expected to earn $1.21 per share and $1.18 per share over the next two years, and we can reasonably expect NII to be proportional. That's OK (not great) if all goes well, but a lot hinges on what the Federal Reserve does next—an open question. Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
