BlackRock TCP Capital Corp (TCPC) Announces Q3 2023 Financial Results
Net investment income for Q3 2023 was $28.3 million, or $0.49 per share, exceeding the regular quarterly dividend of $0.34 per share.
Net asset value per share was $12.72 at the end of Q3 2023, compared to $12.94 at the end of Q2 2023.
Total acquisitions during Q3 2023 were $92.4 million and total dispositions were $125.6 million.
On November 2, 2023, the board of directors declared a Q4 regular dividend of $0.34 per share and a special dividend of $0.25 per share.
BlackRock TCP Capital Corp (NASDAQ:TCPC) released its Q3 2023 financial results on November 2, 2023. The company reported net investment income of $28.3 million, or $0.49 per share, exceeding the regular quarterly dividend of $0.34 per share. This marks 46 consecutive quarters of dividend coverage. The net asset value per share was $12.72 at the end of Q3 2023, compared to $12.94 at the end of Q2 2023.
Financial Highlights
The net increase in net assets from operations for Q3 2023 was $12.8 million, or $0.22 per share, compared to $16.3 million, or $0.28 per share for Q2 2023. For the nine months ended September 30, 2023, the net increase in net assets from operations was $51.8 million, or $0.90 per share. Total acquisitions during Q3 2023 were $92.4 million and total dispositions were $125.6 million.
As of September 30, 2023, three portfolio companies are on non-accrual status, representing 1.1% of the portfolio at fair value and 1.7% at cost. In October, Moodys reaffirmed the companys investment-grade rating with a stable outlook.
CEO Commentary
We generated another strong quarter of earnings, with net investment income up 17% year-over-year, as we capitalized on the floating rate nature of our portfolio and the higher proportion of our liabilities that are fixed rate, said Rajneesh Vig, BlackRock TCP Capital Corp. Chairman and CEO. We selectively identified compelling new investment opportunities and funded a number of growth initiatives with our existing portfolio companies. The credit quality of our diverse portfolio of 143 companies also remains strong.
Merger Agreement
On September 6, 2023, the company entered into a merger agreement with BlackRock Capital Investment Corporation. The merger is subject to shareholder approval, customary regulatory approvals, and other closing conditions. The transaction is expected to close in the first calendar quarter of 2024.
Portfolio and Investment Activity
As of September 30, 2023, the company's investment portfolio consisted of debt and equity positions in 143 portfolio companies with a total fair value of approximately $1.6 billion. 88.7% of the total portfolio was senior secured debt, and 76.1% of the total portfolio was first lien. Equity positions represented approximately 11.3% of the portfolio.
Consolidated Results of Operations
Total investment income for Q3 2023 was approximately $54.2 million, or $0.94 per share. Total operating expenses for Q3 2023 were approximately $25.9 million, or $0.45 per share. Net investment income for Q3 2023 was approximately $28.3 million, or $0.49 per share.
Liquidity and Capital Resources
As of September 30, 2023, available liquidity was approximately $352.9 million, comprised of approximately $261.2 million in available capacity under the company's leverage program and $91.7 million in cash and cash equivalents.
Explore the complete 8-K earnings release (here) from BlackRock TCP Capital Corp for further details.
This article first appeared on GuruFocus.
