Financial Performance - For Q1 2024, BlackRock TCP Capital Corp. reported net investment income of $28.3 million, or $0.46 per share, exceeding the regular dividend of $0.34 per share[2]. - Total investment income for Q1 2024 was approximately $55.7 million, or $0.90 per share, with a weighted average effective yield of the debt portfolio at approximately 14.1%[12][8]. - The net increase in net assets from operations for Q1 2024 was $5.1 million, or $0.08 per share, compared to $13.3 million, or $0.23 per share, for the previous quarter[2]. - Net investment income before taxes for Q1 2024 was $28,261,273, compared to $25,408,567 in Q1 2023, reflecting a growth of 7.3%[28]. - Basic and diluted earnings per share decreased to $0.08 in Q1 2024 from $0.39 in Q1 2023[28]. - Total investment income for Q1 2024 was $55,729,309, an increase of 10.4% from $50,308,350 in Q1 2023[28]. - Total operating expenses for Q1 2024 were approximately $27.5 million, or $0.44 per share, with annualized expenses at 4.4% of average net assets[13]. - Total operating expenses rose to $27,468,036 in Q1 2024, up 10.3% from $24,899,783 in Q1 2023[28]. Asset and Investment Overview - As of March 31, 2024, net asset value per share decreased to $11.14 from $11.90 at December 31, 2023[2]. - The company’s consolidated investment portfolio consisted of debt and equity positions in 157 portfolio companies with a total fair value of approximately $2.1 billion[7]. - Total investments at fair value were $2,116,419,296 as of March 31, 2024, up from $1,554,941,110 at the end of 2023[26]. - Net assets increased to $953,482,427 as of March 31, 2024, compared to $687,601,546 at the end of 2023, reflecting improved financial health[26]. - Total assets increased to $2,283,532,138 as of March 31, 2024, compared to $1,698,772,353 at the end of 2023, indicating strong growth in the asset base[26]. Debt and Leverage - Total debt outstanding as of March 31, 2024, was $1,302,812,708, an increase from $985,200,609 as of December 31, 2023, reflecting a significant rise in leverage[26]. - The combined weighted-average interest rate on debt outstanding was 5.08% as of March 31, 2024[15]. - The weighted-average interest rate on debt, excluding fees, was approximately 2.52% as of March 31, 2024[18]. - Debt investments on non-accrual status represented 1.7% of the portfolio at fair value and 3.6% at cost as of March 31, 2024[8]. Corporate Actions and Dividends - The company completed the acquisition of BlackRock Capital Investment Corporation on March 18, 2024, resulting in total acquisitions of approximately $607.0 million for the quarter[2]. - The company completed its merger with BCIC on March 18, 2024, resulting in BCIC's corporate existence ceasing and becoming an indirect wholly-owned subsidiary[21]. - The Board of Directors declared a second quarter dividend of $0.34 per share, payable on June 28, 2024, to stockholders of record as of June 14, 2024[23]. - The company has a new dividend reinvestment plan (DRIP) effective from March 18, 2024, allowing shareholders to reinvest dividends into additional shares[17]. - The management fee rate was reduced from 1.50% to 1.25% on assets equal to or below 200% of the net asset value following the merger[22]. - The company has a stock repurchase plan to acquire up to $50.0 million of its common stock, although no shares were repurchased during the three months ended March 31, 2024[19][20]. Market and Economic Outlook - The company focuses on direct lending to middle-market companies and small businesses, aiming for high total returns through current income and capital appreciation[29]. - The company is externally managed by a wholly-owned subsidiary of BlackRock, Inc., ensuring alignment with investment objectives[29]. - Forward-looking statements indicate potential risks including changes in economic conditions, interest rates, and regulatory changes that could impact future performance[31].

Financial Structure and Leverage - The Company has a leverage program consisting of $300 million in available debt under a revolving credit facility, $200 million under a senior secured revolving credit facility, and $250 million in senior unsecured notes maturing in 2024, among other debt instruments [273]. - Total leverage outstanding as of March 31, 2024, included $160.0 million subject to a SOFR credit adjustment of 0.11% [328]. - The total leverage as of March 31, 2024, was $1.3 billion, with $286 million available for borrowing [331]. - As of March 31, 2024, the company's asset coverage ratio was 182%, down from the previous requirement of 200% to 150% approved by shareholders [331]. - The company is in compliance with all financial and operational covenants required by its Leverage Program as of March 31, 2024 [337]. Investment Strategy and Portfolio - The Company’s investment strategy focuses on achieving high total returns through current income and capital appreciation, primarily investing in the debt of middle-market companies [272]. - As of March 31, 2024, 81.4% of the Company's total assets were invested in qualifying assets, which include securities and indebtedness of private U.S. companies [278]. - As of March 31, 2024, the consolidated investment portfolio was valued at $2,116.4 million, with 92.3% invested in debt investments, primarily senior secured debt [303]. - During the three months ended March 31, 2024, the company invested approximately $607.0 million, with 95.8% in senior secured loans [300]. - The portfolio consisted of 157 companies, with the largest investment representing approximately 4.7% of the total portfolio [303]. - The industry composition of the portfolio included 13.3% in Diversified Financial Services and 13.3% in Internet Software and Services as of March 31, 2024 [305]. - Debt investments in five portfolio companies were on non-accrual status as of March 31, 2024, representing 1.7% of the portfolio at fair value [307]. - As of March 31, 2024, 98.5% of investments were categorized as Level 3, indicating reliance on unobservable inputs for valuation [294]. Revenue and Income - The Company generated revenues primarily from interest on debt investments, with expected maturities generally between three to five years [279]. - Investment income for the three months ended March 31, 2024, totaled $55.7 million, an increase from $50.3 million in the same period of 2023, primarily due to higher interest income from increased SOFR rates [308]. - Net investment income increased to $28.3 million in Q1 2024 from $25.4 million in Q1 2023, reflecting higher total investment income [310]. - Adjusted net investment income for Q1 2024 was $27.7 million, compared to $25.4 million in Q1 2023, reflecting the exclusion of purchase accounting discount amortization [321]. - The change in net unrealized depreciation for Q1 2024 was $(23.0) million, compared to an appreciation of $28.0 million in Q1 2023, driven by losses in several investments [312]. Expenses and Dividends - The Company’s operating expenses include management fees, administration fees, and costs related to its investment activities [280]. - Total operating expenses for Q1 2024 were $27.5 million, up from $24.9 million in Q1 2023, primarily due to increased interest expenses and incentive fees [309]. - The company paid $26.9 million in dividends to common shareholders during the three months ended March 31, 2024 [335]. - A regular dividend of $0.34 per share was declared for the second quarter, payable on June 28, 2024, to shareholders of record as of June 14, 2024 [351]. - The company has a new dividend reinvestment plan effective from March 18, 2024, allowing shareholders to reinvest dividends into additional shares [323]. Mergers and Agreements - The Company completed a Merger with BCIC on March 18, 2024, resulting in the issuance of 27,823,870 shares of its common stock to former BCIC shareholders [275]. - The Merger Agreement included an Exchange Ratio of 0.3834 shares of the Company's common stock for each outstanding share of BCIC's common stock [275]. - The company completed a merger with BCIC on March 18, 2024, which was treated as a tax-free reorganization [316]. - The company has entered into a royalty-free license agreement with BlackRock and the Advisor for the use of their names [350]. Economic Conditions and Risks - Unfavorable economic conditions may impact the company's ability to raise capital and could limit its investment opportunities [338]. - The impact of interest rate changes on net investment income is significant, with potential material adverse effects from significant market rate fluctuations [353]. - The Company assesses portfolio companies periodically to ensure they can meet interest payments amid potential interest rate increases [353]. Interest Rate Sensitivity - At March 31, 2024, 97.1% of debt investments bore interest based on floating rates, with 92.1% of those subject to an interest rate floor [307]. - Interest rate sensitivity indicates that a 300 basis point increase could result in a net investment income of $42,135,914, equating to $0.61 per share [355]. - A 200 basis point increase in interest rates would yield a net investment income of $28,090,610, or $0.41 per share [355]. - A 100 basis point increase would generate $14,045,305 in net investment income, translating to $0.20 per share [355]. - Conversely, a 100 basis point decrease would lead to a loss of $14,045,305, or $(0.20) per share [355].

BlackRock TCP Capital Corporation (NASDAQ:TCPC) Q4 2023 Earnings Conference Call February 29, 2024 1:00 PM ET Company Participants Kathleen McGlynn - IR Rajneesh Vig - Chairman & CEO Erik Cuellar - CFO Philip Tseng - President & COO Conference Call Participants Christopher Nolan - Ladenburg Thalman Paul Johnson - KBW Robert Dodd - Raymond James Operator Ladies and gentlemen, good afternoon. Welcome, everyone, to BlackRock TCP Capital Corp's Fourth Quarter and Full Year 2023 Earnings Conference Call. Today's ...

[Financial Highlights and Executive Summary](index=1&type=section&id=Financial%20Highlights%20and%20Executive%20Summary) This section summarizes BlackRock TCP Capital Corp.'s Q4 and full-year 2023 financial performance, key metrics, and strategic outlook, including the pending merger [Q4 & Full Year 2023 Performance Overview](index=1&type=section&id=Q4%20%26%20Full%20Year%202023%20Performance%20Overview) The company reported solid Q4 and full-year 2023 financial results, with strong net investment income growth and consistent dividend coverage - Generated solid net investment income in Q4 2023, contributing to a strong year with **20% NII growth** and a **14.5% net investment income return on equity**[3](index=3&type=chunk) - Achieved **47 consecutive quarters of dividend coverage**, with Q4 2023 net investment income of **$0.44 per share** exceeding the regular dividend of **$0.34 per share**[4](index=4&type=chunk) - Net asset value (NAV) per share declined to **$11.90** at December 31, 2023, from **$12.72** at September 30, 2023, primarily due to unrealized losses on three idiosyncratic portfolio positions[3](index=3&type=chunk)[4](index=4&type=chunk) [Key Financial Metrics](index=1&type=section&id=Key%20Financial%20Metrics) Key financial metrics for Q4 and full-year 2023 highlight strong NII, a decline in NAV, active investment management, and stable dividend declarations Key Financial Metrics Table | Metric | Q4 2023 | Full Year 2023 | | :--------------------------------- | :-------------------- | :-------------------- | | Net Investment Income (NII) (million USD / share) | $25.3 million ($0.44/share) | $106.6 million ($1.84/share) | | Net Asset Value (NAV) per share (USD) | $11.90 (as of Dec 31, 2023) | $11.90 (as of Dec 31, 2023) | | Net Decrease in Net Assets from Operations (million USD / share) | $13.3 million ($0.23/share) | $38.5 million ($0.67/share) (Net Increase) | | Total Acquisitions (million USD) | $40.6 million | $226.1 million | | Total Dispositions (million USD) | $42.2 million | $218.7 million | | Loans on Non-Accrual Status (Fair Value) (%) | 2.0% of portfolio | 2.0% of portfolio | | Loans on Non-Accrual Status (Cost) (%) | 3.7% of portfolio | 3.7% of portfolio | | Q1 2024 Dividend Declared (USD / share) | $0.34 per share | N/A | [Strategic Initiatives & Outlook](index=1&type=section&id=Strategic%20Initiatives%20%26%20Outlook) The company maintains solid credit quality, focuses on selective investments, and expects its merger with BCIC to close in Q1 2024, creating scale and NII accretion - Overall credit quality is **solid**, and the company is well-positioned to execute its strategy of selectively investing in compelling, new opportunities[5](index=5&type=chunk) - The proposed merger with BlackRock Capital Investment Corporation (BCIC) is anticipated to close in **Q1 2024**, creating substantial scale, operational cost synergies, better access to capital, and is expected to be **accretive to NII**[4](index=4&type=chunk)[5](index=5&type=chunk) [Portfolio and Investment Activity](index=3&type=section&id=Portfolio%20and%20Investment%20Activity) This section details the company's investment portfolio composition, including asset types, fair value, non-accrual status, and investment and disposition activities [Portfolio Composition](index=3&type=section&id=Portfolio%20Composition) As of December 31, 2023, the investment portfolio comprised 142 companies with a fair value of approximately **$1.6 billion**, primarily senior secured debt and floating rate investments Portfolio Composition Table | Metric | Value/Percentage (as of Dec 31, 2023) | | :--------------------------------- | :------------------------------------ | | Total Fair Value of Portfolio (billion USD) | Approximately $1.6 billion | | Number of Portfolio Companies | 142 | | Senior Secured Debt (% of total portfolio) | 89.3% of total portfolio | | First Lien Debt (% of total portfolio) | 77.6% of total portfolio | | Equity Positions (% of total portfolio) | Approximately 10.7% of total portfolio | | Floating Rate Debt Investments (% of debt investments) | 95.6% of debt investments | | Floating Rate Debt with Interest Rate Floors (% of floating rate debt) | 94.0% of floating rate debt | | Weighted Average Annual Effective Yield (Debt Portfolio) (%) | 14.1% | | Weighted Average Annual Effective Yield (Total Portfolio) (%) | 13.3% | - Debt investments in four portfolio companies were on non-accrual status, representing **2.0% of the portfolio at fair value** and **3.7% at cost**, including the loan to Thras.io placed on non-accrual during Q4[4](index=4&type=chunk)[7](index=7&type=chunk) [Investment Activity & Yields](index=3&type=section&id=Investment%20Activity%20%26%20Yields) During Q4 2023, the company actively managed its portfolio with **$40.6 million** in new investments and **$42.2 million** in dispositions, focusing on high current income and principal protection Investment Activity & Yields Table | Metric | Q4 2023 | | :--------------------------------- | :-------------------- | | Total Investments Made (million USD) | $40.6 million | | Primary Investment Type | Senior secured loans (91.4% of acquisitions) | | Proceeds from Sales/Repayments (million USD) | $42.2 million | | Weighted Average Effective Yield (New Investments) (%) | 13.4% | | Weighted Average Effective Yield (Exited Investments) (%) | 12.5% | - The company's investment strategy emphasizes obtaining a **high level of current income** with an emphasis on **principal protection**, primarily through senior secured loans, bonds, and subordinated debt, as well as select equity investments[8](index=8&type=chunk) [Asset and Net Asset Value](index=3&type=section&id=Asset%20and%20Net%20Asset%20Value) Total assets remained stable at **$1.7 billion**, while net assets and net asset value per share decreased from the prior quarter Asset and Net Asset Value Table | Metric | Dec 31, 2023 | Sep 30, 2023 | | :-------------------- | :-------------------- | :-------------------- | | Total Assets (billion USD) | $1.7 billion | $1.7 billion | | Net Assets (million USD) | $687.6 million | $735.0 million | | Net Asset Value per Share (USD) | $11.90 | $12.72 | [Consolidated Results of Operations](index=3&type=section&id=Consolidated%20Results%20of%20Operations) This section presents the company's investment income, operating expenses, net investment income, and the impact of realized and unrealized gains and losses on net assets [Investment Income](index=3&type=section&id=Investment%20Income) Total investment income for Q4 2023 was **$50.8 million** (**$0.88 per share**), primarily from interest income, recurring original issue discount, and PIK income Investment Income Table | Income Source | Q4 2023 (per share) | | :--------------------------------- | :-------------------- | | Total Investment Income (USD / share) | $0.88 | | Recurring Original Issue Discount & Exit Fee Amortization (USD / share) | $0.04 | | Interest Income Paid in Kind (PIK) (USD / share) | $0.06 | | Dividend Income (USD / share) | $0.02 | | Other Income (USD / share) | $0.00 | [Operating Expenses](index=3&type=section&id=Operating%20Expenses) Total operating expenses for Q4 2023 were **$25.6 million** (**$0.44 per share**), with interest and incentive compensation as major components, and annualized expenses at **4.5%** of average net assets Operating Expenses Table | Expense Category | Q4 2023 (per share) | | :--------------------------------- | :-------------------- | | Total Operating Expenses (USD / share) | $0.44 | | Interest and Other Debt Expenses (USD / share) | $0.20 | | Incentive Compensation from Net Investment Income (USD / share) | $0.09 | | Annualized Expenses (excl. incentive comp, interest/debt) (% of average net assets) | 4.5% of average net assets | [Net Investment Income and Net Assets Changes](index=3&type=section&id=Net%20Investment%20Income%20and%20Net%20Assets%20Changes) Net investment income for Q4 2023 was **$25.3 million** (**$0.44 per share**), offset by **$38.6 million** (**$0.67 per share**) in net unrealized losses, resulting in a net decrease in net assets from operations Net Investment Income and Net Assets Changes Table | Metric | Q4 2023 | | :--------------------------------- | :-------------------- | | Net Investment Income (million USD / share) | $25.3 million ($0.44/share) | | Net Realized Losses (million USD / share) | $0.0 million ($0.00/share) | | Net Unrealized Losses (million USD / share) | $38.6 million ($0.67/share) | | Net Decrease in Net Assets from Operations (million USD / share) | $13.3 million ($0.23/share) | - Key drivers of net unrealized losses included investments in Edmentum (**$13.8 million**), Thras.io (**$8.6 million**), Aventiv Technologies (Securus) (**$5.4 million**), Astra Acquisition (**$2.4 million**), and Nephron (**$2.3 million**)[12](index=12&type=chunk)[13](index=13&type=chunk) [Liquidity and Capital Resources](index=5&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's liquidity position, debt structure, and share repurchase program, highlighting available capital and financing arrangements [Liquidity Position](index=5&type=section&id=Liquidity%20Position) As of December 31, 2023, the company maintained approximately **$359.0 million** in available liquidity, comprising cash and available capacity under its leverage program Liquidity Position Table | Metric | Amount (as of Dec 31, 2023) | | :--------------------------------- | :-------------------------- | | Total Available Liquidity (million USD) | $359.0 million | | Available Capacity under Leverage Program (million USD) | $246.8 million | | Cash and Cash Equivalents (million USD) | $112.2 million | [Debt Structure](index=5&type=section&id=Debt%20Structure) Total debt outstanding at December 31, 2023, was **$988.6 million** (carrying value) with a **4.29%** weighted-average interest rate, comprising various facilities and notes Debt Structure Table | Debt Instrument | Maturity | Rate | Carrying Value (Dec 31, 2023) (USD) | Available Capacity (USD) | | :------------------------ | :--------- | :--------- | :---------------------------- | :------------------- | | Operating Facility | 2026 | SOFR+2.00% | $163,168,808 | $136,831,192 | | Funding Facility II | 2027 | SOFR+2.05% | $100,000,000 | $100,000,000 | | SBA Debentures | 2024−2031 | 2.52% | $150,000,000 | $10,000,000 | | 2024 Notes | 2024 | 3.900% | $249,596,009 | — | | 2026 Notes | 2026 | 2.850% | $325,791,013 | — | | **Total Leverage** | | | **$988,555,830** | **$246,831,192** | | Weighted-Average Interest Rate on Debt Outstanding (%) | | 4.29% | | | [Share Repurchase Program](index=5&type=section&id=Share%20Repurchase%20Program) The Board re-approved a stock repurchase plan for up to **$50.0 million** of common stock, though no shares were repurchased during Q4 or the full year 2023 - The Board re-approved a stock repurchase plan to acquire up to **$50.0 million** of common stock at prices below net asset value per share[18](index=18&type=chunk) - No shares were repurchased during the three months or year ended December 31, 2023[18](index=18&type=chunk) [Merger Agreement](index=5&type=section&id=Merger%20Agreement) This section details the merger agreement with BlackRock Capital Investment Corporation (BCIC), including its status, approvals, expected closing, and post-merger advisor fee structure [Merger Details and Status](index=5&type=section&id=Merger%20Details%20and%20Status) The company's merger agreement with BCIC, updated **January 10, 2024**, is board-approved and anticipated to close in **Q1 2024**, pending stockholder and regulatory approvals - The Merger Agreement with BlackRock Capital Investment Corporation (BCIC) was initially entered into on **September 6, 2023**, and an Amended and Restated Agreement was entered into on **January 10, 2024**[4](index=4&type=chunk)[19](index=19&type=chunk) - The merger has been approved by both companies' Boards of Directors, including independent directors, and is subject to stockholder and customary regulatory approvals[19](index=19&type=chunk)[21](index=21&type=chunk) - The transaction is currently anticipated to close during the **first calendar quarter of 2024**[4](index=4&type=chunk)[21](index=21&type=chunk) [Post-Merger Advisor Fee Structure](index=6&type=section&id=Post-Merger%20Advisor%20Fee%20Structure) Upon merger closing, the Advisor will reduce its base management fee rate from **1.50% to 1.25%** on assets up to **200% of net asset value**, maintaining **1.00%** for assets above this threshold - Subject to the closing of the Merger, the Advisor has agreed to reduce its base management fee rate from **1.50% to 1.25%** on assets equal to or below **200% of the net asset value** of the Company[22](index=22&type=chunk) - The base management fee rate on assets exceeding **200% of net asset value** will remain **1.00%**, with no change to the basis of calculation[22](index=22&type=chunk) [Recent Developments](index=6&type=section&id=Recent%20Developments) This section highlights recent key events, specifically the declaration of the first quarter dividend [Dividend Declaration](index=6&type=section&id=Dividend%20Declaration) The Board of Directors declared a first quarter dividend of **$0.34 per share**, payable on **March 29, 2024** Dividend Declaration Table | Dividend | Amount (USD) | Payable Date | Record Date | | :-------------------- | :------- | :----------- | :---------- | | Q1 2024 Dividend (USD / share) | $0.34/share | March 29, 2024 | March 14, 2024 | [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents the company's consolidated statements of assets and liabilities and operations for recent fiscal years [Consolidated Statements of Assets and Liabilities](index=7&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) The Consolidated Statements of Assets and Liabilities detail the company's financial position at year-end 2023 and 2022, including investments, cash, debt, and net assets Consolidated Statements of Assets and Liabilities Table | Item | December 31, 2023 | December 31, 2022 | | :------------------------------------------ | :-------------------- | :-------------------- | | **Assets** | | | | Total investments, at fair value (USD) | $1,554,941,110 | $1,609,587,641 | | Cash and cash equivalents (USD) | $112,241,946 | $82,435,171 | | Total assets (USD) | $1,698,772,353 | $1,719,349,849 | | **Liabilities** | | | | Debt (net of deferred issuance costs) (USD) | $985,200,609 | $944,005,814 | | Total liabilities (USD) | $1,011,170,807 | $972,596,059 | | **Net Assets** | | | | Total net assets (USD) | $687,601,546 | $746,753,790 | | Net assets per share (USD) | $11.90 | $12.93 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations present the company's financial performance for 2021-2023, highlighting investment income, operating expenses, and net changes in net assets Consolidated Statements of Operations Table | Item | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | Year Ended Dec 31, 2021 | | :------------------------------------------ | :---------------------- | :---------------------- | :---------------------- | | Total investment income (USD) | $209,328,883 | $181,002,459 | $165,105,708 | | Total operating expenses (USD) | $102,524,810 | $92,564,286 | $92,562,594 | | Net investment income (USD) | $106,556,758 | $88,438,173 | $72,543,114 | | Net realized gain (loss) (USD) | $(31,648,232) | $(18,230,951) | $4,287,643 | | Net change in unrealized appreciation (depreciation) (USD) | $(36,434,094) | $(79,432,554) | $63,166,306 | | Net increase (decrease) in net assets resulting from operations (USD) | $38,474,432 | $(9,225,332) | $133,790,774 | | Basic and diluted earnings (loss) per share (USD) | $0.67 | $(0.16) | $2.32 | [Company Information](index=9&type=section&id=Company%20Information) This section provides an overview of BlackRock TCP Capital Corp., its investment objectives, forward-looking statement disclaimers, and contact information [About BlackRock TCP Capital Corp.](index=9&type=section&id=About%20BlackRock%20TCP%20Capital%20Corp.) BlackRock TCP Capital Corp. is a specialty finance BDC focused on direct lending to middle-market and small businesses, seeking high total returns via current income and capital appreciation with principal protection - BlackRock TCP Capital Corp. (NASDAQ: TCPC) is a specialty finance company and a publicly-traded Business Development Company (BDC) regulated under the Investment Company Act of 1940[29](index=29&type=chunk) - The company focuses on direct lending to middle-market and small businesses, investing across industries where it has significant knowledge and expertise[29](index=29&type=chunk) - Its investment objective is to achieve **high total returns** through current income and capital appreciation, with an emphasis on **principal protection**[29](index=29&type=chunk) [Forward-Looking Statements](index=9&type=section&id=Forward-Looking%20Statements) This section disclaims forward-looking statements, indicating actual results may differ due to economic, financing, interest rate, regulatory, and merger-related risks - Forward-looking statements are based on management's estimates, projections, beliefs, and assumptions and are not guarantees of future performance, involving risks and uncertainties[31](index=31&type=chunk) - Actual results could differ materially due to factors such as changes in economic conditions, financing availability, interest rates, regulatory changes, and specific risks detailed in the company's Form 10-K[31](index=31&type=chunk) - Merger-related risks include uncertainties regarding timing, expected synergies, ability to realize benefits, stockholder approval, competing offers, and other closing conditions[31](index=31&type=chunk) [Contact Information](index=10&type=section&id=Contact%20Information) Contact details for BlackRock TCP Capital Corp. investor relations are provided for inquiries - For investor relations inquiries, contact Katie McGlynn at **310-566-1094** or **investor.relations@tcpcapital.com**[33](index=33&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Year Ended December 31, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 814-00899 BLACKROCK TCP CAPITAL CORP. (Exact Name of Registrant as Specified in Charter) Delaware 56-2594706 (State or Other Jurisdiction of Incorporation) (IRS Employer Identification No.) 295 ...

Financial Data and Key Metrics Changes - Net investment income for Q3 2023 was $0.49 per share, a 17% increase year-over-year, exceeding the dividend of $0.34 per share [17][75] - The overall effective yield in the debt portfolio increased to 14.1% compared to 11.3% one year ago, reflecting higher base rates and wider spreads on new investments [13] Business Line Data and Key Metrics Changes - In Q3, the company invested $92 million, a significant increase from $17 million in Q2, focusing on senior secured loans [6][4] - Follow-on investments in existing portfolio companies accounted for about half of the dollars deployed over the last 12 months [8] Market Data and Key Metrics Changes - The portfolio at quarter end had fair market values of approximately $1.6 billion, with 89% of investments in secured debt across various industries [11] - The credit quality remains strong, with only three portfolio companies on non-accrual, representing 1.1% of the portfolio's fair value [29] Company Strategy and Development Direction - The company is focused on maintaining a disciplined investment approach, emphasizing companies that provide necessary services or products, ensuring resilience across market cycles [14][34] - A proposed merger with BlackRock Capital Investment Corp. is expected to enhance operational efficiencies and provide better access to capital [42][71] Management's Comments on Operating Environment and Future Outlook - Management anticipates a slower growth and elevated rate environment with ongoing macroeconomic uncertainties [1] - The company remains confident in its investment strategy and ability to deliver long-term returns despite market volatility [34][75] Other Important Information - The company declared a fourth quarter dividend of $0.34 per share and a supplemental dividend of $0.25 per share, reflecting a commitment to sustainable dividends [17][77] - The total liquidity increased to $353 million at the end of the quarter, with available leverage of $261 million and cash of $92 million [30] Q&A Session Summary Question: How is the solar investment maturing? - The solar investment is a residual position with no plans to extend, as it is expected to run off in a staggered fashion [20] Question: Can you provide insights on the credit quality and sponsor discussions? - There are no thematic portfolio-wide issues; individual companies are facing specific challenges, but sponsors are generally proactive in managing liquidity and costs [39][40] Question: What are the proceeds used for in follow-on investments? - Proceeds are primarily used for add-on acquisitions and organic growth, with some instances of dividend recapitalizations [46][49] Question: Will special dividends continue in the future? - Special dividends should not be expected as recurring; they are a way to return value to shareholders based on strong earnings [51][54]

Part I [Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section presents BlackRock TCP Capital Corp.'s unaudited consolidated financial statements, including assets, operations, net assets, cash flows, and investment schedule, for the period ended September 30, 2023 [Consolidated Statements of Assets and Liabilities](index=3&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of September 30, 2023, total assets remained stable at $1.72 billion, while net assets slightly decreased to $735 million, leading to a NAV per share of $12.72 Consolidated Balance Sheet Summary | Metric | September 30, 2023 (unaudited) | December 31, 2022 | | :--- | :--- | :--- | | Total Investments, at fair value | $1,593,320,718 | $1,609,587,641 | | Total Assets | $1,719,164,854 | $1,719,349,849 | | Total Liabilities | $984,167,557 | $972,596,059 | | Net Assets | $734,997,297 | $746,753,790 | | Net Assets Per Share | $12.72 | $12.93 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 2023 saw increased investment income and net investment income, but a net realized and unrealized loss reduced the net increase in net assets to $12.8 million Q3 2023 vs Q3 2022 Performance | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Total Investment Income | $54,210,941 | $48,206,329 | | Total Operating Expenses | $25,877,865 | $23,814,862 | | Net Investment Income | $28,319,912 | $24,391,467 | | Net Realized and Unrealized Gain (Loss) | ($15,496,980) | $1,847,540 | | Net Increase in Net Assets | $12,822,932 | $26,239,007 | | Basic and Diluted EPS | $0.22 | $0.45 | Nine Months 2023 vs 2022 Performance | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Total Investment Income | $158,480,129 | $134,312,623 | | Total Operating Expenses | $77,134,007 | $68,897,018 | | Net Investment Income | $81,297,518 | $65,415,605 | | Net Realized and Unrealized Gain (Loss) | ($29,510,021) | ($26,855,713) | | Net Increase in Net Assets | $51,787,497 | $38,559,892 | | Basic and Diluted EPS | $0.90 | $0.67 | [Consolidated Statements of Changes in Net Assets](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets decreased to $735 million for the nine months ended September 30, 2023, primarily due to $63.5 million in dividends offsetting operational gains Changes in Net Assets (Nine Months Ended Sep 30, 2023) | Item | Amount | | :--- | :--- | | Balance at December 31, 2022 | $746,753,790 | | Net Investment Income | $81,297,518 | | Net Realized and Unrealized Loss | ($29,510,021) | | Dividends Paid to Shareholders | ($63,543,990) | | **Balance at September 30, 2023** | **$734,997,297** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to $52.1 million for the nine months ended September 30, 2023, with cash and equivalents at $91.7 million Cash Flow Summary (Nine Months Ended) | Activity | September 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $52,124,269 | $168,475,437 | | Net Cash from Financing Activities | ($42,906,434) | ($82,233,181) | | **Net Increase in Cash** | **$9,217,835** | **$86,242,256** | | Cash at Beginning of Period | $82,435,171 | $19,552,273 | | **Cash at End of Period** | **$91,653,006** | **$105,794,529** | [Consolidated Schedule of Investments](index=8&type=section&id=Consolidated%20Schedule%20of%20Investments) The $1.59 billion investment portfolio as of September 30, 2023, primarily comprised debt investments across 143 companies, with key concentrations in Internet Software and Services Portfolio Composition as of September 30, 2023 | Investment Type | Fair Value | % of Net Assets | | :--- | :--- | :--- | | Total Debt Investments | $1,413,069,920 | 192.2% | | Total Equity Securities | $180,251,203 | 24.5% | | **Total Investments** | **$1,593,320,718** | **216.7%** | - The investment portfolio is diversified across numerous industries, with the largest concentrations in Internet Software and Services (14.7%), Diversified Financial Services (12.0%), and Diversified Consumer Services (12.0%)[288](index=288&type=chunk) [Notes to Consolidated Financial Statements](index=39&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, debt structure, commitments, investment valuation, and the proposed merger with BlackRock Capital Investment Corporation (BCIC) - On September 6, 2023, the Company entered into an Agreement and Plan of Merger with BlackRock Capital Investment Corporation (BCIC). The merger is subject to stockholder and regulatory approvals[82](index=82&type=chunk)[214](index=214&type=chunk) Fair Value Hierarchy of Investments (Sep 30, 2023) | Level | Basis for Fair Value | Total Value | % of Total | | :--- | :--- | :--- | :--- | | 1 | Quoted prices in active markets | $533,360 | ~0.0% | | 2 | Observable market inputs | $68,098,115 | 4.3% | | 3 | Significant unobservable inputs | $1,524,689,243 | 95.7% | | **Total** | | **$1,593,320,718** | **100.0%** | - The company declared total dividends of **$1.10 per share** for the nine months ended September 30, 2023, which included a regular dividend of $0.34 and a special dividend of $0.10 for the third quarter[197](index=197&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=77&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2023 financial performance, portfolio activity, and liquidity, highlighting increased net investment income, rising portfolio yield, and the proposed merger with BCIC [Portfolio and Investment Activity](index=82&type=section&id=Portfolio%20and%20Investment%20Activity) Q3 2023 saw $92.4 million in investments and $125.6 million in proceeds, with the $1.59 billion portfolio's weighted average debt yield rising to 14.1% - During Q3 2023, the company invested **$92.4 million** and received **$125.6 million** in proceeds from sales or repayments[282](index=282&type=chunk) Portfolio Yield and Composition | Metric | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Weighted Avg. Effective Yield (Debt) | 14.1% | 12.7% | | Floating Rate Debt Investments | 94.9% | 93.6% | | Non-Accrual Investments (at fair value) | 1.1% | 2.0% | [Results of Operations](index=84&type=section&id=Results%20of%20Operations) Q3 2023 investment income increased to $54.2 million due to higher interest rates, but a $15.4 million net unrealized loss reduced the net increase in net assets - The increase in investment income for Q3 2023 was primarily driven by the rise in LIBOR/SOFR rates on the company's floating-rate debt portfolio[290](index=290&type=chunk) - The change to net unrealized depreciation of **$(15.4) million** in Q3 2023 was primarily due to unrealized losses on investments in Edmentum, Khoros, and Magenta Buyer, partially offset by a gain on Astra Acquisition[298](index=298&type=chunk) [Liquidity and Capital Resources](index=86&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $974.2 million in total debt outstanding, $261.2 million available for borrowing, and an asset coverage ratio of 189% Leverage Program Summary (Sep 30, 2023) | Facility | Carrying Value | Available | Total Capacity | | :--- | :--- | :--- | :--- | | Operating Facility | $148,826,611 | $151,173,389 | $300,000,000 | | Funding Facility II | $100,000,000 | $100,000,000 | $200,000,000 | | SBA Debentures | $150,000,000 | $10,000,000 | $160,000,000 | | 2024 Notes | $249,443,956 | $0 | $249,443,956 | | 2026 Notes | $325,887,724 | $0 | $325,887,724 | | **Total Leverage** | **$974,158,291** | **$261,173,389** | **$1,235,331,680** | - The company's asset coverage ratio was **189%** as of September 30, 2023, compliant with the **150%** regulatory minimum[313](index=313&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=91&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk, with 94.9% of debt investments being floating rate; a 100 basis point rate increase would boost annual net investment income by $12.3 million Interest Rate Sensitivity Analysis (Annual Impact) | Basis Point Change | Net Investment Income | Net Investment Income Per Share | | :--- | :--- | :--- | | Up 300 basis points | $36,862,357 | $0.64 | | Up 200 basis points | $24,574,905 | $0.43 | | Up 100 basis points | $12,287,452 | $0.21 | | Down 100 basis points | ($12,287,452) | ($0.21) | | Down 200 basis points | ($24,574,905) | ($0.43) | | Down 300 basis points | ($36,862,357) | ($0.64) | [Controls and Procedures](index=91&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Management concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[334](index=334&type=chunk) Part II [Legal Proceedings](index=92&type=section&id=Item%201.%20Legal%20Proceedings) The company is a defendant in a lawsuit seeking $15 million related to a third-party collateralized loan obligation, which it intends to vigorously defend - The company is a defendant in a lawsuit seeking to recover approximately **$15 million** related to a third-party sponsored collateralized loan obligation. The company plans to file a motion to dismiss and defend against the claims[336](index=336&type=chunk) [Risk Factors](index=92&type=section&id=Item%201A.%20Risk%20Factors) Systemic risk in U.S. and global capital markets, exemplified by recent bank failures, poses a significant threat to the company's business and financial condition - The company identifies systemic risk in the U.S. and global capital markets as a key risk, citing the recent failures of Silicon Valley Bank and Signature Bank as examples that could lead to market-wide liquidity problems and adversely affect the company[338](index=338&type=chunk)[339](index=339&type=chunk) [Other Information](index=94&type=section&id=Item%205.%20Other%20Information) This section presents quarterly stock price data, including high/low closing prices, premium/discount to NAV, and declared dividends per share for recent fiscal periods 2023 Quarterly Stock Price and Dividend Summary | Fiscal Quarter 2023 | NAV per Share | High Price | Low Price | Declared Distributions | | :--- | :--- | :--- | :--- | :--- | | First Quarter | $13.00 | $13.37 | $9.73 | $0.32 | | Second Quarter | $12.94 | $11.42 | $9.76 | $0.34 | | Third Quarter | $12.72 | $12.89 | $11.00 | $0.44 |

| --- | --- | |---------------------|-------| | Fixed / Floating(2) | | | Floating Rate | 94% | | Fixed Rate | 6% | SBA Debentures 9% Credit Facilities 17% Unsecured Debt 32% Equity 42% BLACKROCK® 7 Well Positioned for a Rising Rate Environment Rates have risen significantly Interest rates have risen significantly over the last twelve months to the highest levels in several years, and 2022 saw the most significant increase in a single year in several decades | --- | --- | --- | |-----------------------|---- ...

BlackRock TCP Capital Corp. (NASDAQ:TCPC) Q2 2023 Earnings Conference Call August 3, 2023 1:00 PM ET Company Participants Katie McGlynn – Investor Relations Raj Vig – Chairman and Chief Executive Officer Phil Tseng – President and Chief Operating Officer Erik Cuellar – Chief Financial Officer Conference Call Participants Christopher Nolan – Ladenburg Thalmann Robert Dodd – Raymond James Ryan Lynch – KBW Operator Ladies and gentlemen, good afternoon. Welcome, everyone, to BlackRock TCP Capital Corp.’s Second ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarter Ended June 30, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 814-00899 BLACKROCK TCP CAPITAL CORP. (Exact Name of Registrant as Specified in Charter) Delaware 56-2594706 (State or Other Jurisdiction of Incorporation) (IRS Employer Identification No.) 2 ...