•
|
Net investment income for the quarter ended September 30, 2023 was $28.3 million, or $0.49 per share on a diluted basis, which exceeded the regular quarterly dividend of $0.34 per share paid on September 29, 2023. This represents 46
consecutive quarters of dividend coverage.
|
•
|
Net asset value per share was $12.72 at September 30, 2023 compared to $12.94 at June 30, 2023.
|
•
|
Net increase in net assets from operations for the quarter ended September 30, 2023 was $12.8 million, or $0.22 per share, compared to $16.3 million, or $0.28 per share for the quarter ended June 30, 2023. Net increase in net assets
from operations for the nine months ended September 30, 2023 was $51.8 million, or $0.90 per share.
|
•
|
Total acquisitions during the quarter ended September 30, 2023 were $92.4 million and total dispositions were $125.6 million.
|
•
|
In October, Moody’s reaffirmed the Company’s investment-grade rating with stable outlook.
|
•
|
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.
|
•
|
On August 4, 2023, the Funding Facility II was amended to extend the maturity date from August 4, 2025 to August 4, 2027. As part of the amendment, the interest rate was revised to SOFR plus a credit spread adjustment of 0.15%, plus a
margin of 2.05%.
|
•
|
On November 2, 2023, our board of directors declared a fourth quarter regular dividend of $0.34 per share and a special dividend of $0.25 per share, both payable on December 29, 2023 to stockholders of record as of the close of
business on December 15, 2023.
|
•
|
As previously disclosed, on September 6, 2023, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with BlackRock Capital Investment Corporation, a Delaware corporation (“BCIC”), pursuant to which the
Company will merge with and into a wholly owned, indirect subsidiary of TCPC (“Merger Sub”), subject to shareholder approval, customary regulatory approvals and other closing conditions. Following the merger, TCPC will continue to trade
on the Nasdaq Global Select Market under the ticker symbol “TCPC” and the Merger Sub will continue as a subsidiary of TCPC.
|
(1)
|
Weighted average annual effective yield includes amortization of deferred debt origination and end-of-term fees 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 any debt investments that are distressed or on non-accrual status.
|
|
|
Maturity
|
|
Rate
|
|
|
Carrying
Value (1) |
|
|
Available
|
|
|
Total
Capacity |
|
|||
Operating Facility
|
|
2026
|
|
SOFR+1.75%
|
(2)
|
|
$
|
148,826,611
|
|
|
$
|
151,173,389
|
|
|
$
|
300,000,000
|
(3)
|
Funding Facility II
|
|
2027
|
|
SOFR+2.05%
|
(4)
|
|
|
100,000,000
|
|
|
|
100,000,000
|
|
|
|
200,000,000
|
(5)
|
SBA Debentures
|
|
2024−2031
|
|
2.52%
|
(6)
|
|
|
150,000,000
|
|
|
|
10,000,000
|
|
|
|
160,000,000
|
|
2024 Notes ($250 million par)
|
|
2024
|
|
3.900%
|
|
|
|
249,443,956
|
|
|
|
—
|
|
|
|
249,443,956
|
|
2026 Notes ($325 million par)
|
|
2026
|
|
2.850%
|
|
|
|
325,887,724
|
|
|
|
—
|
|
|
|
325,887,724
|
|
Total leverage
|
|
|
|
|
|
|
|
974,158,291
|
|
|
$
|
261,173,389
|
|
|
$
|
1,235,331,680
|
|
Unamortized issuance costs
|
|
|
|
|
|
|
|
(3,784,018
|
)
|
|
|
|
|
|
|
||
Debt, net of unamortized issuance costs
|
|
|
|
|
|
|
$
|
970,374,273
|
|
|
|
|
|
|
|
(1)
|
Except for the 2024 Notes and the 2026 Notes, all carrying values are the same as the principal amounts outstanding.
|
(2)
|
As of September 30, 2023, $139.0 million of the outstanding amount is subject to a SOFR credit adjustment of 0.11%. $7.8 million of the outstanding amount bore interest at a rate of
EURIBOR + 2.00% and $2.0 million of the outstanding amount bore interest at a rate of Prime + 1.00%.
|
(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)
|
Weighted-average interest rate, excluding fees of 0.35% or 0.36%.
|
|
|
September 30,
2023
|
|
|
December 31,
2022
|
|
||
|
|
(unaudited)
|
|
|
|
|
||
Assets
|
|
|
|
|
|
|
||
Investments, at fair value:
|
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments (cost of $1,417,840,118 and $1,474,146,428, respectively)
|
|
$
|
1,357,720,924
|
|
|
$
|
1,402,764,659
|
|
Non-controlled, affiliated investments (cost of $38,607,673 and $37,132,993, respectively)
|
|
|
65,709,964
|
|
|
|
69,089,697
|
|
Controlled investments (cost of $195,494,803 and $158,500,500, respectively)
|
|
|
169,889,830
|
|
|
|
137,733,285
|
|
Total investments (cost of $1,651,942,594 and $1,669,779,921, respectively)
|
|
|
1,593,320,718
|
|
|
|
1,609,587,641
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
|
91,653,006
|
|
|
|
82,435,171
|
|
Interest, dividends and fees receivable
|
|
|
26,660,224
|
|
|
|
20,903,797
|
|
Deferred debt issuance costs
|
|
|
4,061,159
|
|
|
|
3,597,236
|
|
Receivable for investments sold
|
|
|
—
|
|
|
|
—
|
|
Prepaid expenses and other assets
|
|
|
3,469,747
|
|
|
|
2,826,004
|
|
Total assets
|
|
|
1,719,164,854
|
|
|
|
1,719,349,849
|
|
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Debt (net of deferred issuance costs of $3,784,018 and $5,056,427, respectively)
|
|
|
970,374,273
|
|
|
|
944,005,814
|
|
Incentive fees payable
|
|
|
6,010,047
|
|
|
|
4,883,575
|
|
Interest and debt related payables
|
|
|
3,776,700
|
|
|
|
9,260,738
|
|
Reimbursements due to the Advisor
|
|
|
1,232,776
|
|
|
|
1,498,733
|
|
Management fees payable
|
|
|
—
|
|
|
|
6,084,202
|
|
Distributions payable
|
|
|
—
|
|
|
|
2,888,363
|
|
Payable for investments purchased
|
|
|
—
|
|
|
|
1,937,465
|
|
Accrued expenses and other liabilities
|
|
|
2,773,761
|
|
|
|
2,037,169
|
|
Total liabilities
|
|
|
984,167,557
|
|
|
|
972,596,059
|
|
|
|
|
|
|
|
|
||
Net assets
|
|
$
|
734,997,297
|
|
|
$
|
746,753,790
|
|
|
|
|
|
|
|
|
||
Composition of net assets applicable to common shareholders
|
|
|
|
|
|
|
||
Common stock, $0.001 par value; 200,000,000 shares authorized, 57,767,264 and 57,767,264 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively
|
|
$
|
57,767
|
|
|
$
|
57,767
|
|
Paid-in capital in excess of par
|
|
|
967,890,570
|
|
|
|
967,890,570
|
|
Distributable earnings (loss)
|
|
|
(232,951,040
|
)
|
|
|
(221,194,547
|
)
|
Total net assets
|
|
|
734,997,297
|
|
|
|
746,753,790
|
|
Total liabilities and net assets
|
|
$
|
1,719,164,854
|
|
|
$
|
1,719,349,849
|
|
Net assets per share
|
|
$
|
12.72
|
|
|
$
|
12.93
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
||||||||||
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
||||
Investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income (excluding PIK):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments
|
|
$
|
46,722,801
|
|
|
$
|
42,027,715
|
|
|
$
|
138,140,812
|
|
|
$
|
116,673,959
|
|
Non-controlled, affiliated investments
|
|
|
48,712
|
|
|
|
38,543
|
|
|
|
141,950
|
|
|
|
105,586
|
|
Controlled investments
|
|
|
2,970,153
|
|
|
|
1,970,246
|
|
|
|
7,954,881
|
|
|
|
5,706,085
|
|
PIK income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments
|
|
|
3,511,734
|
|
|
|
2,061,595
|
|
|
|
8,728,033
|
|
|
|
5,146,491
|
|
Controlled investments
|
|
|
—
|
|
|
|
—
|
|
|
|
310,993
|
|
|
|
—
|
|
Dividend income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments
|
|
|
263,420
|
|
|
|
278,321
|
|
|
|
821,599
|
|
|
|
765,404
|
|
Non-controlled, affiliated investments
|
|
|
672,734
|
|
|
|
597,715
|
|
|
|
1,960,002
|
|
|
|
1,741,419
|
|
Controlled investments
|
|
|
—
|
|
|
|
855,124
|
|
|
|
—
|
|
|
|
3,419,023
|
|
Other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments
|
|
|
21,387
|
|
|
|
331,420
|
|
|
|
376,209
|
|
|
|
657,153
|
|
Non-controlled, affiliated investments
|
|
|
—
|
|
|
|
45,650
|
|
|
|
45,650
|
|
|
|
97,503
|
|
Total investment income
|
|
|
54,210,941
|
|
|
|
48,206,329
|
|
|
|
158,480,129
|
|
|
|
134,312,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and other debt expenses
|
|
|
12,133,863
|
|
|
|
10,167,966
|
|
|
|
35,971,338
|
|
|
|
28,882,380
|
|
Management fees
|
|
|
6,092,673
|
|
|
|
6,629,270
|
|
|
|
18,065,948
|
|
|
|
19,903,163
|
|
Incentive fees
|
|
|
6,010,047
|
|
|
|
5,173,948
|
|
|
|
17,255,238
|
|
|
|
13,876,038
|
|
Professional fees
|
|
|
745,978
|
|
|
|
386,531
|
|
|
|
1,519,106
|
|
|
|
1,366,919
|
|
Administrative expenses
|
|
|
357,921
|
|
|
|
403,355
|
|
|
|
1,092,268
|
|
|
|
1,324,450
|
|
Director fees
|
|
|
185,500
|
|
|
|
287,541
|
|
|
|
745,319
|
|
|
|
746,654
|
|
Insurance expense
|
|
|
134,212
|
|
|
|
146,566
|
|
|
|
426,790
|
|
|
|
508,688
|
|
Custody fees
|
|
|
94,811
|
|
|
|
80,659
|
|
|
|
276,727
|
|
|
|
241,181
|
|
Other operating expenses
|
|
|
122,860
|
|
|
|
539,026
|
|
|
|
1,781,273
|
|
|
|
2,047,545
|
|
Total operating expenses
|
|
|
25,877,865
|
|
|
|
23,814,862
|
|
|
|
77,134,007
|
|
|
|
68,897,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net investment income before taxes
|
|
|
28,333,076
|
|
|
|
24,391,467
|
|
|
|
81,346,122
|
|
|
|
65,415,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Excise tax expense
|
|
|
13,164
|
|
|
|
—
|
|
|
|
48,604
|
|
|
|
—
|
|
Net investment income
|
|
|
28,319,912
|
|
|
|
24,391,467
|
|
|
|
81,297,518
|
|
|
|
65,415,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Realized and unrealized gain (loss) on investments and foreign currency
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized gain (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments
|
|
|
(128,841
|
)
|
|
|
133,449
|
|
|
|
(31,153,173
|
)
|
|
|
(29,235,313
|
)
|
Non-controlled, affiliated investments
|
|
|
—
|
|
|
|
124,191
|
|
|
|
—
|
|
|
|
11,172,439
|
|
Controlled investments
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(124,801
|
)
|
Net realized gain (loss)
|
|
|
(128,841
|
)
|
|
|
257,640
|
|
|
|
(31,153,173
|
)
|
|
|
(18,187,675
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net change in unrealized appreciation (depreciation):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments
|
|
|
(9,268,963
|
)
|
|
|
(15,273,883
|
)
|
|
|
11,820,648
|
|
|
|
(23,435,906
|
)
|
Non-controlled, affiliated investments
|
|
|
(4,131,670
|
)
|
|
|
(1,568,147
|
)
|
|
|
(5,339,736
|
)
|
|
|
(8,726,239
|
)
|
Controlled investments
|
|
|
(1,967,506
|
)
|
|
|
18,431,930
|
|
|
|
(4,837,760
|
)
|
|
|
23,494,107
|
|
Net change in unrealized appreciation (depreciation)
|
|
|
(15,368,139
|
)
|
|
|
1,589,900
|
|
|
|
1,643,152
|
|
|
|
(8,668,038
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized and unrealized gain (loss)
|
|
|
(15,496,980
|
)
|
|
|
1,847,540
|
|
|
|
(29,510,021
|
)
|
|
|
(26,855,713
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net increase (decrease) in net assets resulting from operations
|
|
$
|
12,822,932
|
|
|
$
|
26,239,007
|
|
|
$
|
51,787,497
|
|
|
$
|
38,559,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted earnings (loss) per share
|
|
$
|
0.22
|
|
|
$
|
0.45
|
|
|
$
|
0.90
|
|
|
$
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted weighted average common shares outstanding
|
|
|
57,767,264
|
|
|
|
57,767,264
|
|
|
|
57,767,264
|
|
|
|
57,767,264
|
|