BlackRock Capital Investment Corporation (NASDAQ:BKCC) Q3 2023 Earnings Call Transcript
BlackRock Capital Investment Corporation (NASDAQ:BKCC) Q3 2023 Earnings Call Transcript November 9, 2023
Operator: Good morning everyone. My name is Lynette, and I will be your conference facilitator today for the BlackRock Capital Investment Corporation Third Quarter 2023 Earnings Conference Call. This call is being recorded. Hosting the call today will be James Keenan, Chairman and Interim Chief Executive Officer; Nik Singhal, President, Chip Holladay, Interim Chief Financial Officer and Treasurer, Laurence Paredes, Corporate Secretary, Diana Huffman, General Counsel; Jason Mehring, Managing Director and Member of the Company’s Investment Committee. Lines have been placed on mute. After the speakers complete their update, they will open the line for a question-and-answer. [Operator Instructions]. At this time I would like to turn the conference over to Mr. Paredes. You may begin the conference call.
Laurence Paredes: Good morning and welcome to the third quarter 2023 earnings conference call of BlackRock Capital Investment Corporation or BCIC. Before we begin our remarks today, I would like to point out that certain comments made during this conference call and within corresponding documents contain forward-looking statements subject to risks and uncertainties. Many of these forward-looking statements can be identified by the use of words such as anticipates, believes, expects, intends, will, should, may and similar expressions. We call to your attention the fact that BCIC’s actual results may differ from these statements. As you know, BCIC has filed with the SEC reports, which lists some of the factors which may cause BCIC’s results to differ materially from these statements.
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BCIC assumes no duty to and does not undertake to update any forward-looking statements. Additionally, certain information discussed and presented may have been derived from third-party sources and has not been independently verified. Accordingly, BCIC makes no representation or warranty with respect to such information. Please note, we have posted to our website an investor presentation that complements this call. Shortly, our management team will highlight some of the information contained in the presentation. The presentation can be accessed by going to our website at www.blackrockbkcc.com and clicking the November 2023 Investor Presentation link in the Presentations section of the Investors page. I would now like to turn the call over to Jim.
James Keenan: Thank you, Larry. Good morning and thank you for joining our third quarter earnings call. I will begin the call with a review and reminder of our proposed merger with our affiliated BDC BlackRock TCP Capital Corp or TCPC that was announced in September. I will then provide an overview of our performance and highlights for the quarter. Nick will then discuss our portfolio activity and Chip will address our financial results in more detail. We will then open the call to your questions. On September 6, 2023, we announced a proposed merger of BCIC with TCPC. As highlighted at the time of the announcement, the proposed transaction is a very logical and natural strategic next step in the growth and evolution of BlackRock BDC platform and the broader $81 billion Global Private Debt business at BlackRock.
With BCIC having successfully transformed its portfolio, the investment portfolios of the two BDCs are now very similar to each other. And importantly, our collective investment team has been managing both portfolios for many years now. We believe the proposed merger positions the combined company for sustained growth and will create meaningful value for BCIC shareholders, including combined operational cost synergies, enhanced scale, better access to capital on improved terms, and potential for improved trading dynamics. We also anticipate that the transaction will be accretive to NII. As an added reminder, BlackRock, the company's advisor, is supporting the transaction with several shareholder-friendly measures, including a reduction of the management fee after closing of the merger from 1.5% to 1.25% for assets equal to or below 200% of net assets.
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