BlackRock TCP Capital: IIQ 2020 Results – First Look
Most everything was GOOD where TCPC’s IIQ 2020 results were concerned. Like most of its peers, the value of its portfolio moved up, causing NAV Per Share to increase a healthy 3.8%. Furthermore, Net Investment Income Per Share was $0.36, only marginally down from the prior quarter’s $0.38 level and in line with the dividend in the period. Credit – as judged by non accruals – remained fine, amounting to only 0.6% of the portfolio at fair market value. (However, that includes one new non performer, bringing the total to 3 in a 101 company portfolio). Leverage dropped slightly from the prior quarter as book value increased and the size of the portfolio shrunk. Liquidity remained GOOD, with both cash and plenty of unused secured debt availability. However – as we had anticipated TCPC joined the ranks of BDCs that have cut their distribution in the face of the current crisis. From the IIIQ, TCPC’s regular quarterly distribution will drop to $0.30 from $0.36. Management points to the impact of lower LIBOR, which has reduced the portfolio yield and probably leaves a measure of room between what the BDC expects to earn and what will be paid out. That’s a (16.7%) reduction. With TCPC’s dividend reduction, the number of BDCs that have managed to maintain their payout through thick and through thin grows ever shorter, underlining how disruptive the first phase of the pandemic has been to the sector.
For all the First Look reviews of IIQ 2020 BDC results, check out the BDC Data Table. We are constantly adding new updates as results come in and we undertake an initial survey. Besides these reports, we are also filling in NAV Per Share and investment portfolio size data to compare with prior periods; adding company or BDC Credit Reporter generated data on underperforming companies and assets and affirming or amending our earlier assessments of every BDC’s Liquidity, Credit, Dividend and Long Term Outlook.Already a Member? Log In
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