BlackRock TCP Capital (TCPC) - 2025 Q2 - Quarterly Results

Financial Performance - For the quarter ended June 30, 2025, net investment income was $27.6 million, or $0.32 per share, exceeding the regular dividend of $0.25 and special dividend of $0.04 per share[2] - The net decrease in net assets from operations for the quarter was $15.9 million, or $0.19 per share, compared to a net increase of $20.9 million, or $0.25 per share, in the previous quarter[2] - Total investment income for the three months ended June 30, 2025, was $51,464,997, a decrease of 28% compared to $71,526,225 for the same period in 2024[29] - Net investment income for the six months ended June 30, 2025, was $59,797,344, down from $64,086,805 in 2024, reflecting a decline of approximately 7%[29] - The company reported a net realized loss of $66,297,375 for the three months ended June 30, 2025, compared to a loss of $35,513,930 in the same period of 2024, indicating a significant increase in losses[29] - Basic and diluted earnings per share for the three months ended June 30, 2025, were $(0.19), compared to $(0.60) for the same period in 2024[29] Asset and Investment Overview - Net asset value per share decreased to $8.71 as of June 30, 2025, down from $9.18 as of March 31, 2025, primarily due to markdowns on previously restructured portfolio companies[2] - Total assets as of June 30, 2025, were $1,936,968,600, with net assets of $740,476,938, resulting in net assets per share of $8.71[27] - Total investments at fair value as of June 30, 2025, were $1,792,334,843, down from $1,794,758,336 at the end of 2024[27] - Debt investments on non-accrual status represented 3.7% of the portfolio at fair value and 10.4% at cost as of June 30, 2025, down from 4.4% and 12.6% respectively as of March 31, 2025[2] Dividends and Shareholder Returns - The Board declared a regular dividend of $0.25 per share and a special dividend of $0.04 per share, payable on September 30, 2025[24] - Approximately $0.5 million of cash distributions were reinvested through the new dividend reinvestment plan (DRIP) for the three months ended June 30, 2025[18] - The Company repurchased 43,980 shares at an average price of $6.85 per share, totaling $301,378 for the six months ended June 30, 2025[20] Expenses and Management Fees - Total operating expenses for the quarter were approximately $23.9 million, or $0.28 per share, including $17.1 million in interest and other debt expenses[13] - Total operating expenses after management fee waiver for the three months ended June 30, 2025, were $23,870,322, a decrease from $35,700,693 in 2024, representing a reduction of approximately 33%[29] - Management fees for the three months ended June 30, 2025, were $5,461,118, a decrease from $6,563,189 in 2024, reflecting a reduction of about 17%[29] - The company’s total operating expenses before management fee waiver were $25,690,694 for the three months ended June 30, 2025, compared to $35,700,693 in 2024, indicating a decrease of approximately 28%[29] Debt and Liquidity - Available liquidity as of June 30, 2025, was approximately $565.5 million, including $455.0 million in available capacity under the leverage program and $107.3 million in cash and cash equivalents[15] - The combined weighted-average interest rate on debt outstanding was 5.26% as of June 30, 2025[16] - Total debt outstanding as of June 30, 2025, was $1,174,640,591, with total leverage at $1,636,263,994[17] - The outstanding amount of the Operating Facility is $202 million, with a maturity date in 2029 and a rate of SOFR+2.00%[17] Investment Activity - Total investment acquisitions during the quarter were approximately $111.5 million, with $102.2 million, or 91.6%, in senior secured loans[9] - The weighted average annual effective yield of the debt portfolio was approximately 12.0% as of June 30, 2025, compared to 12.2% as of March 31, 2025[8] - The Company completed the acquisition of HPS Investment Partners on July 1, 2025, enhancing its investment management capabilities[21] - The Company prepaid $35 million of 6.85% Series 2022A Senior Notes and $57 million of Floating Rate Series 2022A Senior Notes on July 31, 2025[22] - The Company extended the revolving period of Funding Facility II to July 31, 2027, through a Sixth Amendment to the Loan and Servicing Agreement[23] Unrealized Gains and Losses - The company experienced a net change in unrealized appreciation of $22,796,116 for the three months ended June 30, 2025, compared to a depreciation of $(51,588,119) in the same period of 2024[29] - Non-controlled, non-affiliated investments generated interest income of $41,609,217 for the three months ended June 30, 2025, down from $63,562,637 in 2024, a decline of approximately 35%[29]