Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) TCG BDC is an externally managed specialty finance company investing in U.S. middle-market secured debt, aiming for income and capital appreciation - TCG BDC, Inc. is an externally managed specialty finance company, regulated as a BDC and RIC, which began investment operations in May 2013 and IPO'd in June 2017[10](index=10&type=chunk) - The investment objective is to generate current income and capital appreciation through secured debt investments in U.S. middle-market companies with **$25 million to $100 million EBITDA**[11](index=11&type=chunk) - Primary revenue sources include interest income from debt, dividends on equity, capital gains, and various loan origination fees[14](index=14&type=chunk) - Investment activities are managed by Carlyle Global Credit Investment Management L.L.C., leveraging Carlyle's Global Credit segment with **$73.4 billion in assets under management** as of December 31, 2021[17](index=17&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) Portfolio Composition by Type (as of December 31, 2021 and 2020) | Type | 2021 (% of Fair Value) | 2020 (% of Fair Value) | | :--------------- | :--------------------- | :--------------------- | | First Lien Debt | 64.4 % | 67.0 % | | Second Lien Debt | 17.9 | 15.6 | | Equity Investments | 4.0 | 1.9 | | Investment Funds | 13.7 | 15.5 | | **Total** | **100.0 %** | **100.0 %** | First and Second Lien Debt Composition by Rate Type (as of December 31, 2021 and 2020) | Type | 2021 (% of Fair Value) | 2020 (% of Fair Value) | | :---------- | :--------------------- | :--------------------- | | Floating Rate | 98.4 % | 99.1 % | | Fixed Rate | 1.6 | 0.9 | | **Total** | **100.0 %** | **100.0 %** | Geographical Composition of Investments (as of December 31, 2021 and 2020) | Geography | 2021 (% of Fair Value) | 2020 (% of Fair Value) | | :------------- | :--------------------- | :--------------------- | | United States | 89.8 % | 91.7 % | | United Kingdom | 5.0 | 4.9 | | Canada | 2.5 | 1.4 | | Luxembourg | 2.0 | 1.6 | | Cyprus | 0.4 | 0.4 | | Italy | 0.3 | — | | **Total** | **100.0 %** | **100.0 %** | Top 3 Industry Concentrations (as of December 31, 2021) | Industry | % of Fair Value | | :------------------------- | :-------------- | | Investment Funds | 13.7 % | | Healthcare & Pharmaceuticals | 12.0 % | | Aerospace & Defense | 8.7 % | [Item 1A. Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from market disruptions, economic uncertainty, adviser dependence, regulatory constraints, illiquid investments, and stock price volatility - The company operates amidst capital market disruption and economic uncertainty, with potential adverse effects from COVID-19, supply chain issues, and inflation[141](index=141&type=chunk)[142](index=142&type=chunk)[145](index=145&type=chunk) - High dependence on the Investment Adviser creates significant potential conflicts of interest due to management of other funds and accounts[149](index=149&type=chunk)[182](index=182&type=chunk)[184](index=184&type=chunk) - As a BDC and RIC, the company is subject to regulatory constraints like asset diversification and distribution requirements, limiting operating flexibility and investment choices[155](index=155&type=chunk)[200](index=200&type=chunk) - Investments are risky, speculative, and generally illiquid, making valuation subjective, and many portfolio companies are highly leveraged, increasing default risk[241](index=241&type=chunk)[245](index=245&type=chunk)[253](index=253&type=chunk) - Borrowing magnifies potential for gain or loss, and the **150% minimum asset coverage ratio** can restrict dividends and capital raising, while interest rate changes may increase borrowing costs[157](index=157&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk) - The common stock market price may fluctuate significantly and has historically traded at a discount to NAV, with future sales below NAV potentially diluting existing stockholders[294](index=294&type=chunk)[299](index=299&type=chunk)[304](index=304&type=chunk) [Item 1B. Unresolved Staff Comments](index=55&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments from the SEC - There are no unresolved staff comments[314](index=314&type=chunk) [Item 2. Properties](index=55&type=section&id=Item%202.%20Properties) The company's principal executive office is located at One Vanderbilt Avenue, Suite 3400, New York, NY 10017, and it does not own any real estate - The company's principal executive office is located at One Vanderbilt Avenue, Suite 3400, New York, NY 10017[315](index=315&type=chunk) - The company does not own any real estate[315](index=315&type=chunk) [Item 3. Legal Proceedings](index=55&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings, nor is any material legal proceeding threatened against it - The Company is not currently subject to any material legal proceedings, nor is any material legal proceeding threatened against it[316](index=316&type=chunk) [Item 4. Mine Safety Disclosures](index=56&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable[318](index=318&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=57&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) TCG BDC's common stock trades on Nasdaq under 'CGBD,' historically at a NAV discount, with quarterly dividends and a **$150 million** stock repurchase program - The company's common stock trades on The Nasdaq Global Select Market under **'CGBD'** and has historically traded both above and below its NAV per share[320](index=320&type=chunk) - As of February 18, 2022, the common stock closing price was **$13.75 per share**, representing an **18.7% discount** to the NAV per share as of December 31, 2021[320](index=320&type=chunk) - The company intends to distribute quarterly dividends, primarily from taxable earnings, to maintain its RIC qualification[322](index=322&type=chunk)[323](index=323&type=chunk) - An 'opt-out' dividend reinvestment plan automatically reinvests cash dividends into additional common stock shares for non-electing stockholders[325](index=325&type=chunk)[327](index=327&type=chunk) - A **$150 million** stock repurchase program was authorized until November 5, 2022, with **$125.3 million** repurchased as of December 31, 2021[332](index=332&type=chunk) Common Stock Repurchases (Q4 2021) | Period | Total Number of Shares Purchased | Average Price Paid Per Share ($) | | :--------------------------------------- | :------------------------------- | :------------------------------- | | October 1, 2021 through October 31, 2021 | 158,751 | $13.83 | | November 1, 2021 through November 30, 2021 | 114,098 | $14.03 | | December 1, 2021 through December 31, 2021 | 299,141 | $13.86 | | **Total** | **571,990** | | [Item 6. [Reserved]](index=57&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no content - This item is reserved[333](index=333&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes TCG BDC's financial condition, operations, and portfolio performance, including investment income, expenses, gains/losses, joint ventures, liquidity, and capital resources - The investment objective is to generate current income and capital appreciation through secured debt investments in U.

Financial Data and Key Metrics Changes - The company reported a net asset value (NAV) per share of $16.65, an increase of $0.51 or 3.2% from the previous quarter's $16.14, and above the NAV reported in Q4 2019 [6] - Net investment income for the quarter was $21 million or $0.39 per common share, exceeding recent performance and guidance [29] - The total investment income for Q3 was $44 million, up from $43 million in the prior quarter, driven by an increase in core interest income [28] Business Line Data and Key Metrics Changes - The portfolio stands at just under $2 billion, with $270 million of new investments funded during the quarter [9] - The company repurchased $6.8 million of its common stock, resulting in $0.02 of accretion to NAV [7] - Total dividend income from joint ventures was $7.5 million, consistent with the last two quarters, yielding about 11% [31] Market Data and Key Metrics Changes - The company noted a robust activity in corporate transactional markets, with the third quarter being one of the busiest in its history [17] - The U.S. labor force participation rate remains approximately 2% below its pre-pandemic peak, impacting certain sectors [16] Company Strategy and Development Direction - The company aims to leverage the Carlyle platform to enhance its investment process, focusing on origination, credit, and portfolio management [12] - The strategy includes maintaining a high degree of investment selectivity and identifying conviction investments while ensuring a defensive approach to portfolio construction [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a complicated macro environment due to the COVID-19 Delta variant and global supply chain disruptions, but noted that borrowers are generally able to pass through cost increases [15][16] - The company expects continued positive fundamental performance and sees opportunities for improvements in non-accrual investments in 2022 [10] Other Important Information - The Board of Directors reapproved a stock repurchase authorization for $150 million, indicating ongoing confidence in the stock's valuation [8] - The company has maintained a stable non-accrual rate at 3.5% based on fair value, with no new non-accruals reported for five consecutive quarters [37] Q&A Session Summary Question: Impact of supply chain shortages and inflation on industry focus - Management indicated that while supply chain issues influence due diligence, they do not significantly change the industries targeted for new capital deployment [44][45] Question: Expectations for portfolio activity in Q4 - Management expects robust activity levels to continue into Q4, with typical seasonality affecting transaction timing [48][50] Question: Share repurchase strategy heading into 2022 - The company plans to continue steady repurchases, adjusting based on the discount to NAV [62] Question: Interest rate sensitivity and inflation impact - The portfolio primarily consists of floating-rate loans with LIBOR floors, which could affect earnings as interest rates rise [68]

Financial Performance - Net investment income was $039 per common share, exceeding the quarterly base dividend of $032[22] - Net realized/unrealized gains of $26 million, or $048 per share[22] - NAV per common share increased 32% to $1665 at 3Q21, from $1614 at 2Q21[22] - Paid 3Q21 base dividend of $032 plus a supplemental dividend of $006 per share, resulting in a LTM dividend yield of 88% based on quarter-end NAV[22] - Share repurchases in 3Q21 totaled 05 million shares for $68 million, contributing $002 per share of accretion to net asset value[22] Portfolio and Investment Activity - Total investments at fair value of $19 billion at 3Q21, up 41% compared to 2Q21[22] - New investment activity of $273 million with a weighted average yield on debt investments of 80%[22] - Repayments of $135 million and strategic sales of $88 million, with a combined weighted average yield on debt investments of 76%[22] Portfolio Composition - Top 10 borrowers represent 20% of exposure[20,25] - Top 3 industries represent 29% of exposure[20] - First lien debt accounts for 66% of the asset mix[25] - Investment funds account for 14% of the asset mix[25,89] - Floating rate investments constitute 985% of the portfolio[24] Credit Fund Performance - Credit Fund has total investments at fair value of $1078 million with a yield of 61%[90] - Credit Fund II has total investments at fair value of $244 million with a yield of 73%[91]

Financial Performance - Total net assets reached $944,394,000 as of September 30, 2021, up from $901,363,000 as of December 31, 2020, reflecting a growth of 4.78%[6]. - Total distributable earnings improved to a loss of $165,465,000 as of September 30, 2021, compared to a loss of $228,993,000 as of December 31, 2020, indicating a reduction in losses[6]. - Basic earnings per common share for the three months ended September 30, 2021, were $0.87, compared to $0.58 in the same period last year[8]. - The net increase in net assets resulting from operations for the nine months ended September 30, 2021, was $126,392, a significant improvement from a decrease of $31,334 in the same period last year[10]. - Net investment income before taxes for the nine months ended September 30, 2021, was $64,402, compared to $66,898 for the same period in 2020[10]. Assets and Liabilities - Total assets increased to $2,044,170,000 as of September 30, 2021, up from $1,922,613,000 as of December 31, 2020, representing a growth of 6.34%[6]. - Total liabilities rose to $1,099,776,000 as of September 30, 2021, compared to $1,021,250,000 as of December 31, 2020, indicating an increase of 7.68%[6]. - Cash and cash equivalents decreased to $46,164,000 as of September 30, 2021, down from $68,419,000 as of December 31, 2020, a decline of 32.54%[6]. - Secured borrowings increased to $425,545,000 as of September 30, 2021, up from $347,949,000 as of December 31, 2020, an increase of 22.31%[6]. Investment Portfolio - Total investments at fair value amounted to $1,948,206,000 as of September 30, 2021, compared to $1,825,749,000 as of December 31, 2020, marking an increase of 6.71%[6]. - TCG BDC, Inc. has a total investment amount of $5,784,000 in Advanced Web Company Technologies Holding, representing 0.64% of net assets[15]. - The company holds $44,444,000 in Appriss Health, LLC, which accounts for 4.64% of net assets[15]. - The investment in Aurora Lux FinCo S.Á.R.L. amounts to $32,571,000, which is 3.13% of net assets[15]. - The company has a total of $10,223,000 invested in Captive Resources Midco, LLC, representing 1.08% of net assets[15]. Investment Income and Expenses - Total investment income for the three months ended September 30, 2021, was $43,762, an increase from $42,784 in the same period last year[8]. - Total expenses for the three months ended September 30, 2021, were $21,513, slightly up from $21,163 in the previous year[8]. - The company reported a dividend interest income of $22,539,000 from controlled/affiliated investments as of September 30, 2021[30]. Cash Flow and Dividends - Cash provided by operating activities for the nine months ended September 30, 2021, was $(18,539), a decrease from $145,247 in the previous year[13]. - Preferred stock dividends declared during the nine months ended September 30, 2021, totaled $62,864, slightly down from $63,912 in the same period last year[13]. - The company declared and paid a dividend on the Preferred Stock of $875 for the three-month period ended September 30, 2021, compared to $856 in the same period of 2020, indicating a 2.2% increase[171]. Market Presence and Strategy - TCG BDC, Inc. has a diverse portfolio with investments in high-tech industries, healthcare, aerospace, and more, indicating a broad market presence[19]. - The company continues to focus on expanding its investment in high-growth sectors, particularly in technology and telecommunications[44]. - The company’s investments include a mix of controlled and non-controlled entities, enhancing its investment strategy and risk management[19]. Valuation and Fair Value - The fair value of the Company's investments may fluctuate significantly due to inherent uncertainties in valuation, especially for illiquid investments[116]. - The Company engaged a third-party valuation firm to review non-traded investments at least once on a rolling twelve-month basis, ensuring independent assessment of fair value[113]. - The total fair value of Level 1 investments was $0, while Level 2 investments were also $0, indicating reliance on Level 3 inputs for valuation[125]. Debt and Borrowings - TCG BDC, Inc. reported a total first lien debt of $1,269,406,000, representing 131.13% of net assets[21]. - The total principal amount for the first lien debt is $1,081,365,000[185]. - The Credit Fund Sub Facility allows secured borrowings up to $640 million, with a maturity date of May 22, 2024[200]. Regulatory Compliance - TCG BDC, Inc. is structured as a business development company (BDC) and must comply with regulatory requirements, including maintaining at least 70% of its total assets in qualifying assets[80]. - The company intends to distribute at least 90% of its investment company taxable income (ICTI) to stockholders to maintain its status as a RIC[99].

TCG BDC, Inc. (NASDAQ:CGBD) Q2 2021 Earnings Conference Call August 4, 2021 11:00 AM ET Company Participants Allison Rudary - Head of Investor Relations Linda Pace - Chief Executive Officer Taylor Boswell - Chief Investment Officer Tom Hennigan - Chief Financial Officer Conference Call Participants Ryan Lynch - KBW Finian O'Shea - Wells Fargo Operator Thank you for standing by, and welcome to TCG BDC's Second Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the spe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period to Commission File No. 814-00995 TCG BDC, INC. (Exact name of Registrant as specified in its charter) Maryland 80-0789789 (State or other jurisdiction of incorporation or orga ...

TCG BDC, Inc. (NASDAQ:CGBD) Q1 2021 Earnings Conference Call May 5, 2021 11:00 AM ET Company Participants Allison Rudary - Investor Relations Linda Pace - Chief Executive Officer Taylor Boswell - Chief Investment Officer Tom Hennigan - Chief Financial Officer Conference Call Participants Melissa Wedel - JPMorgan Paul Johnson - KBW Operator Ladies and gentlemen, thank you for standing by and welcome to the TCG BDC First Quarter 2021 Earnings Conference Call. [Operator Instructions] I would now like to turn t ...

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Investment Portfolio - The fair value of investments as of March 31, 2021, was $1,841,634, compared to $1,825,749 on December 31, 2020[296]. - The count of investments increased to 164 as of March 31, 2021, from 160 on December 31, 2020[296]. - The percentage of total investment fair value in first lien debt (excluding first lien/last out debt) was 63.2% as of March 31, 2021, down from 63.6% on December 31, 2020[296]. - Total secured debt represented 82.9% of the investment fair value as of March 31, 2021, compared to 82.6% on December 31, 2020[296]. - The portfolio included 119 portfolio companies/investment funds as of March 31, 2021, up from 117 on December 31, 2020[296]. - Floating rate debt investments accounted for 99.1% of the debt investment fair value as of March 31, 2021, consistent with the previous period[296]. - Total investments decreased from $2,247,327 million as of March 31, 2020, to $1,924,992 million as of March 31, 2021[310]. - The fair value of non-accrual investments was $60,376 million as of March 31, 2021, representing approximately 3.3% of total investments at fair value[311]. - The weighted average Internal Risk Rating of the debt investment portfolio was 2.3 as of March 31, 2021, compared to 2.4 as of December 31, 2020[307]. - The principal amount of new investments purchased was $148,927 million for the three months ended March 31, 2021, compared to $331,932 million in the same period of 2020[298]. - The average amount of new funded investments increased from $10,277 million in 2020 to $12,583 million in 2021[298]. - The percentage of new funded debt investments at floating interest rates increased to 100% in 2021 from 90% in 2020[298]. Financial Performance - Investment income for the three months ended March 31, 2021, was $40,848 million, down from $50,545 million in the same period of 2020, primarily due to lower average loan balances and decreased LIBOR[310]. - Total investment income for the three month period ended March 31, 2021 was $40,848, down 19% from $50,545 in 2020, while net investment income decreased to $20,679 from $23,972, a decline of 14%[314]. - For the three month period ended March 31, 2021, the Company earned $1,470 in other income, a decrease of 37% from $2,344 in the same period of 2020, primarily due to lower prepayment and underwriting fees[312]. - Dividend and interest income from Investment Funds increased to $7,528 for the three month period ended March 31, 2021, up 15% from $6,549 in 2020, driven by the formation of Credit Fund II and higher dividends from Credit Fund[313]. - Total expenses for the three month period ended March 31, 2021 were $20,169, a decrease of 24% from $26,573 in 2020, primarily due to lower interest expenses[316]. - Interest expense for the three month period ended March 31, 2021 was $6,975, down 43% from $12,179 in 2020, attributed to lower LIBOR and average principal balances[316]. - The Company reported net realized gains of $1,673 for the three month period ended March 31, 2021, compared to a net loss of $1,697 in the same period of 2020[322]. - The net change in unrealized appreciation on investments for the three month period ended March 31, 2021 was $13,859, a significant improvement compared to a depreciation of $145,563 in 2020[322]. Asset and Debt Management - As of March 31, 2021, total assets of Credit Fund were $1,058,005, a decrease of 10.6% from $1,183,730 as of December 31, 2020[330]. - Secured borrowings for Credit Fund decreased to $446,301 as of March 31, 2021, down 13.2% from $514,261 at the end of 2020[330]. - The fair value of the Company's ownership interest in subordinated loans and members' equity was $202,695 as of March 31, 2021, slightly down from $205,891 as of December 31, 2020[330]. - The company maintained compliance with all covenants and requirements of its credit facility agreements as of March 31, 2021[347]. - The total outstanding consolidated indebtedness was $948,597, down from $987,149 as of December 31, 2020, representing a decrease of approximately 3.9%[406]. - The annualized interest cost as of March 31, 2021, was 2.83%, a slight decrease from 2.89% as of December 31, 2020[406]. - Total unfunded commitments as of March 31, 2021, were $149,152, slightly down from $149,508 as of December 31, 2020[394]. - The company has a first lien security interest in substantially all of its portfolio investments under the Credit Facility[379]. Investment Strategy - The company aims to generate current income and capital appreciation primarily through debt investments in U.S. middle market companies[283]. - The investment strategy focuses on lending to U.S. middle market companies with approximately $25 million to $100 million of EBITDA[283]. - The company has made strategic investments in various sectors, including healthcare, automotive, and media, diversifying its portfolio[338]. - The geographical composition of investments as of December 31, 2020, was 97.2% in the United States and 2.8% in Canada[344]. - The company has a maturity date for several loans extending to 2026, indicating long-term financing strategies[338]. Interest Rate Sensitivity - The company assesses interest rate risk by comparing interest rate sensitive assets to liabilities and may engage in hedging transactions as necessary[439]. - As of March 31, 2021, a 300 basis point increase in interest rates would result in net investment income of $12,716,000[440]. - A 200 basis point increase would yield net investment income of $5,027,000[440]. - A 100 basis point increase would lead to a net investment income loss of $2,652,000[440]. - A 100 basis point decrease would generate net investment income of $1,208,000[440]. - Interest income at a 300 basis point increase is projected to be $34,724,000[440]. - Interest expense at a 300 basis point increase is estimated at $22,008,000[440]. - Interest income at a 200 basis point increase is $19,699,000[440]. - Interest expense at a 200 basis point increase is $14,672,000[440]. - Interest income at a 100 basis point increase is $4,684,000[440]. - Interest expense at a 100 basis point increase is $7,336,000[440].

| --- | --- | --- | |------------------------------------------------------------------|-------|-------| | | | | | | | | | TCG BDC, Inc. Quarterly Earnings Presentation DECEMBER 31, 2020 | | | 1 Disclaimer and Forward-Looking Statement This presentation (the "Presentation") has been prepared by TCG BDC, Inc. (together with its consolidated subsidiaries, "we," "us," "our," "TCG BDC" or the "Company") (NASDAQ: CGBD) and may only be used for informational purposes only. This Presentation should be viewed in co ...