10-Q 1 tcpc-10q_20210930.htm 10-Q tcpc-10q_20210930.htm

 

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 September 30, 2021

 

 

 

☐   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.)

 

 

2951 28th Street, Suite 1000

 

Santa Monica, California

90405

(Address of Principal Executive Offices)

(Zip Code)

 

(310) 566-1000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

 

Common Stock, par value $0.001 per share

TCPC

NASDAQ Global Select Market

(Title of each class)

(Trading Symbol(s) )

(Name of each exchange where registered)

 

Securities registered pursuant to Section 12(g) of the Act: None

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act: Yes No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days: Yes No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller Reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes No

The number of shares of the Registrant’s common stock, $0.001 par value, outstanding as of November 3, 2021 was 57,767,264.

 

 

 


 

 

BLACKROCK TCP CAPITAL CORP.

FORM 10-Q

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

TABLE OF CONTENTS

 

Part I.

Financial Information

 

 

 

 

Item 1.

Financial Statements

 

 

Consolidated Statements of Assets and Liabilities as of September 30, 2021 (unaudited) and December 31, 2020

2

 

 

 

 

Consolidated Statements of Operations for the three and nine months ended September 30, 2021 (unaudited) and September 30, 2020 (unaudited)

3

 

 

 

 

Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2021 (unaudited) and September 30, 2020 (unaudited)

4

 

 

 

 

Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 (unaudited) and September 30, 2020 (unaudited)

5

 

 

 

 

Consolidated Schedule of Investments as of September 30, 2021 (unaudited) and December 31, 2020

6

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

23

 

 

 

 

Consolidated Schedule of Changes in Investments in Affiliates for the nine months ended September 30, 2021 (unaudited) and year ended December 31, 2020

47

 

 

 

 

Consolidated Schedule of Restricted Securities of Unaffiliated Issuers as of September 30, 2021 (unaudited) and December 31, 2020

51

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

53

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

66

 

 

 

Item 4.

Controls and Procedures

67

 

 

 

Part II.

Other Information

 

 

 

 

Item 1.

Legal Proceedings

68

 

 

 

Item 1A.

Risk Factors

68

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

69

 

 

 

Item 3.

Defaults upon Senior Securities

69

 

 

 

Item 4.

Mine Safety Disclosures

69

 

 

 

Item 5.

Other Information

69

 

 

 

Item 6.

Exhibits

70

 

 

 

1


 

 

BlackRock TCP Capital Corp.

Consolidated Statements of Assets and Liabilities

 

 

 

September 30, 2021

 

 

December 31, 2020

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Investments, at fair value:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost of $1,583,532,605 and $1,473,322,720, respectively)

 

$

1,577,986,058

 

 

$

1,461,610,769

 

Non-controlled, affiliated investments (cost of $36,910,529 and $63,114,875, respectively)

 

 

81,655,989

 

 

 

68,927,182

 

Controlled investments (cost of $138,743,968 and $136,332,302, respectively)

 

 

97,736,134

 

 

 

99,026,531

 

Total investments (cost of $1,759,187,102 and $1,672,769,897, respectively)

 

 

1,757,378,181

 

 

 

1,629,564,482

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

36,587,629

 

 

 

20,006,580

 

Interest, dividends and fees receivable

 

 

21,609,069

 

 

 

15,571,648

 

Receivable for investments sold

 

 

10,961,011

 

 

 

278,737

 

Deferred debt issuance costs

 

 

4,951,369

 

 

 

4,984,388

 

Prepaid expenses and other assets

 

 

2,019,664

 

 

 

1,581,320

 

Total assets

 

 

1,833,506,923

 

 

 

1,671,987,155

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Debt (net of deferred issuance costs of $7,393,385 and $6,308,172, respectively)

 

 

977,842,119

 

 

 

850,016,199

 

Payable for investments purchased

 

 

30,965,213

 

 

 

33,275,348

 

Incentive fees payable

 

 

4,744,532

 

 

 

5,020,794

 

Interest and debt related payables

 

 

3,371,130

 

 

 

9,886,085

 

Reimbursements due to the Advisor

 

 

630,581

 

 

 

1,344,756

 

Management fees payable

 

 

 

 

 

5,753,347

 

Accrued expenses and other liabilities

 

 

1,749,255

 

 

 

1,704,048

 

Total liabilities

 

 

1,019,302,830

 

 

 

907,000,577

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets

 

$

814,204,093

 

 

$

764,986,578

 

 

 

 

 

 

 

 

 

 

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, 2021 and December 31, 2020, respectively

 

$

57,767

 

 

$

57,767

 

Paid-in capital in excess of par

 

 

979,973,202

 

 

 

979,973,202

 

Distributable earnings (loss)

 

 

(165,826,876

)

 

 

(215,044,391

)

Total net assets

 

 

814,204,093

 

 

 

764,986,578

 

Total liabilities and net assets

 

$

1,833,506,923

 

 

$

1,671,987,155

 

 

 

 

 

 

 

 

 

 

Net assets per share

 

$

14.09

 

 

$

13.24

 

 

See accompanying notes to the consolidated financial statements.

 

 

 

 

2


 

 

BlackRock TCP Capital Corp.

Consolidated Statements of Operations (Unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Investment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (excluding PIK):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

$

37,697,276

 

 

$

34,362,132

 

 

$

108,621,535

 

 

$

105,290,665

 

Non-controlled, affiliated investments

 

 

33,840

 

 

 

1,047,031

 

 

 

93,408

 

 

 

2,051,272

 

Controlled investments

 

 

1,645,938

 

 

 

1,225,033

 

 

 

4,970,757

 

 

 

4,419,429

 

PIK income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

1,165,160

 

 

 

2,275,382

 

 

 

3,459,791

 

 

 

6,244,827

 

Non-controlled, affiliated investments

 

 

 

 

 

913,580

 

 

 

 

 

 

2,779,536

 

Dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

64,136

 

 

 

 

 

 

1,062,258

 

 

 

 

Non-controlled, affiliated investments

 

 

1,227,706

 

 

 

 

 

 

4,052,293

 

 

 

 

Controlled investments

 

 

623,218

 

 

 

1,270,626

 

 

 

1,768,119

 

 

 

2,000,771

 

Lease income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Controlled investments

 

 

 

 

 

 

 

 

 

 

 

38,136

 

Other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

190,329

 

 

 

1,753,914

 

 

 

401,483

 

 

 

5,739,886

 

Non-controlled, affiliated investments

 

 

68,475

 

 

 

 

 

 

1,095,019

 

 

 

648,799

 

Total investment income

 

 

42,716,078

 

 

 

42,847,698

 

 

 

125,524,663

 

 

 

129,213,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other debt expenses

 

 

10,518,017

 

 

 

9,729,241

 

 

 

31,336,260

 

 

 

31,330,324

 

Management fees

 

 

6,769,543

 

 

 

5,883,493

 

 

 

19,138,476

 

 

 

17,804,678

 

Incentive fees

 

 

4,744,532

 

 

 

5,048,103

 

 

 

13,984,436

 

 

 

10,293,407

 

Professional fees

 

 

506,071

 

 

 

437,127

 

 

 

1,376,331

 

 

 

1,438,195

 

Administrative expenses

 

 

407,669

 

 

 

539,947

 

 

 

1,376,473

 

 

 

1,619,841

 

Director fees

 

 

220,786

 

 

 

220,557

 

 

 

765,986

 

 

 

660,789

 

Insurance expense

 

 

149,839

 

 

 

175,080

 

 

 

434,839

 

 

 

525,241

 

Custody fees

 

 

97,676

 

 

 

106,209

 

 

 

241,867

 

 

 

329,649

 

Other operating expenses

 

 

610,350

 

 

 

585,228

 

 

 

1,969,828

 

 

 

1,983,186

 

Total operating expenses

 

 

24,024,483

 

 

 

22,724,985

 

 

 

70,624,496

 

 

 

65,985,310

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

18,691,595

 

 

 

20,122,713

 

 

 

54,900,167

 

 

 

63,228,011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and unrealized gain (loss) on investments and foreign currency

 

Net realized gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

2,856,902

 

 

 

(2,077,025

)

 

 

4,699,586

 

 

 

2,333,558

 

Non-controlled, affiliated investments

 

 

5,068,545

 

 

 

(15,918,435

)

 

 

6,096,601

 

 

 

(15,918,435

)

Controlled investments

 

 

 

 

 

 

 

 

 

 

 

129,950

 

Net realized gain (loss)

 

 

7,925,447

 

 

 

(17,995,460

)

 

 

10,796,187

 

 

 

(13,454,927

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation (depreciation):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

2,187,483

 

 

 

23,326,541

 

 

 

6,486,904

 

 

 

(27,714,505

)

Non-controlled, affiliated investments

 

 

(9,608,818

)

 

 

22,255,450

 

 

 

38,933,146

 

 

 

5,298,718

 

Controlled investments

 

 

(2,092,739

)

 

 

1,243,968

 

 

 

(3,702,063

)

 

 

(1,534,229

)

Net change in unrealized appreciation (depreciation)

 

 

(9,514,074

)

 

 

46,825,959

 

 

 

41,717,987

 

 

 

(23,950,016

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized gain (loss)

 

 

(1,588,627

)

 

 

28,830,499

 

 

 

52,514,174

 

 

 

(37,404,943

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized loss on extinguishment of debt

 

 

(6,206,289

)

 

 

(2,436,913

)

 

 

(6,206,289

)

 

 

(2,436,913

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

10,896,679

 

 

$

46,516,299

 

 

$

101,208,052

 

 

$

23,386,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share

 

$

0.19

 

 

$

0.81

 

 

$

1.75

 

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average common shares outstanding

 

 

57,767,264

 

 

 

57,767,264

 

 

 

57,767,264

 

 

 

58,066,434

 

 

 

 

See accompanying notes to the consolidated financial statements.

 

3


 

 

BlackRock TCP Capital Corp.

Consolidated Statements of Changes in Net Assets (Unaudited)

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Par Amount

 

 

Paid in Capital

in Excess of Par

 

 

Distributable

earnings (loss)

 

 

Total Net

Assets

 

Balance at December 31, 2020

 

 

57,767,264

 

 

$

57,767

 

 

$

979,973,202

 

 

$

(215,044,391

)

 

$

764,986,578

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

18,441,386

 

 

 

18,441,386

 

Net realized and unrealized gain

 

 

 

 

 

 

 

 

 

 

 

17,043,436

 

 

 

17,043,436

 

Dividends paid to shareholders

 

 

 

 

 

 

 

 

 

 

 

(17,330,179

)

 

 

(17,330,179

)

Balance at March 31, 2021

 

 

57,767,264

 

 

 

57,767

 

 

 

979,973,202

 

 

 

(196,889,748

)

 

 

783,141,221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

17,767,186

 

 

 

17,767,186

 

Net realized and unrealized gain

 

 

 

 

 

 

 

 

 

 

 

37,059,365

 

 

 

37,059,365

 

Dividends paid to shareholders

 

 

 

 

 

 

 

 

 

 

 

(17,330,179

)

 

 

(17,330,179

)

Balance at June 30, 2021

 

 

57,767,264

 

 

$

57,767

 

 

$

979,973,202

 

 

$

(159,393,376

)

 

$

820,637,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

18,691,595

 

 

 

18,691,595

 

Net realized and unrealized loss

 

 

 

 

 

 

 

 

 

 

 

(1,588,627

)

 

 

(1,588,627

)

Realized loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

(6,206,289

)

 

 

(6,206,289

)

Dividends paid to shareholders

 

 

 

 

 

 

 

 

 

 

 

(17,330,179

)

 

 

(17,330,179

)

Balance at September 30, 2021

 

 

57,767,264

 

 

$

57,767

 

 

$

979,973,202

 

 

$

(165,826,876

)

 

$

814,204,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Par Amount

 

 

Paid in Capital

in Excess of Par

 

 

Distributable

earnings (loss)

 

 

Total Net

Assets

 

Balance at December 31, 2019

 

 

58,766,426

 

 

$

58,766

 

 

$

997,379,362

 

 

$

(221,119,742

)

 

$

776,318,386

 

Issuance of common stock from dividend reinvestment plan

 

 

486

 

 

 

1

 

 

 

3,038

 

 

 

 

 

3,039

 

Repurchase of common stock

 

 

(1,000,000

)

 

 

(1,000

)

 

 

(6,099,190

)

 

 

 

 

(6,100,190

)

Net investment income

 

 

 

 

 

 

 

 

22,052,924

 

 

 

22,052,924

 

Net realized and unrealized loss

 

 

 

 

 

 

 

 

(91,534,335

)

 

 

(91,534,335

)

Dividends paid to shareholders

 

 

 

 

 

 

 

 

(21,155,913

)

 

 

(21,155,913

)

Balance at March 31, 2020

 

 

57,766,912

 

 

$

57,767

 

 

$

991,283,210

 

 

$

(311,757,066

)

 

$

679,583,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock from dividend reinvestment plan

 

 

352

 

 

 

 

 

 

3,214

 

 

 

 

 

 

3,214

 

Net investment income

 

 

 

 

 

 

 

 

21,052,373

 

 

 

21,052,373

 

Net realized and unrealized gain

 

 

 

 

 

 

 

 

25,298,894

 

 

 

25,298,894

 

Dividends paid to shareholders

 

 

 

 

 

 

 

 

(20,796,088

)

 

 

(20,796,088

)

Balance at June 30, 2020

 

 

57,767,264

 

 

$

57,767

 

 

$

991,286,424

 

 

$

(286,201,887

)

 

$

705,142,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

20,122,713

 

 

 

20,122,713

 

Net realized and unrealized gain

 

 

 

 

 

 

 

 

 

 

 

28,830,499

 

 

 

28,830,499

 

Realized loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,436,913

)

 

 

(2,436,913

)

Dividends paid to shareholders

 

 

 

 

 

 

 

 

 

 

 

(17,330,179

)

 

 

(17,330,179

)

Balance at September 30, 2020

 

 

57,767,264

 

 

$

57,767

 

 

$

991,286,424

 

 

$

(257,015,767

)

 

$

734,328,424

 

 

 

 

See accompanying notes to the consolidated financial statements.

 

4


 

 

BlackRock TCP Capital Corp.

Consolidated Statements of Cash Flows (Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Operating activities

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

101,208,052

 

 

$

23,386,155

 

Adjustments to reconcile net increase (decrease) in net assets resulting from

   operations to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Net realized (gain) loss

 

 

(10,796,187

)

 

 

13,454,927

 

Realized loss on extinguishment of debt

 

 

6,206,289

 

 

 

2,436,913

 

Change in net unrealized (appreciation) depreciation of investments

 

 

(41,396,496

)

 

 

23,545,215

 

Net amortization of investment discounts and premiums

 

 

(8,013,758

)

 

 

(6,403,254

)

Amortization of original issue discount on debt

 

 

1,041,983

 

 

 

896,286

 

Interest and dividend income paid in kind

 

 

(3,459,791

)

 

 

(9,024,363

)

Amortization of deferred debt issuance costs

 

 

2,781,330

 

 

 

2,635,272

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Purchases of investments

 

 

(571,652,589

)

 

 

(268,627,023

)

Proceeds from sales, maturities and paydowns of investments

 

 

507,505,120

 

 

 

267,794,042

 

Decrease (increase) in interest, dividends and fees receivable

 

 

(6,037,421

)

 

 

1,806,831

 

Decrease (increase) in receivable for investments sold

 

 

(10,682,274

)

 

 

1,149,394

 

Decrease (increase) in prepaid expenses and other assets

 

 

(438,344

)

 

 

2,411

 

Increase (decrease) in payable for investments purchased

 

 

(2,310,135

)

 

 

(6,471,484

)

Increase (decrease) in incentive fees payable

 

 

(276,262

)

 

 

294,432

 

Increase (decrease) in interest and debt related payables

 

 

(6,514,955

)

 

 

(7,909,781

)

Increase (decrease) in reimbursements due to the Advisor

 

 

(714,175

)

 

 

(1,001,114

)

Increase (decrease) in management fees payable

 

 

(5,753,347

)

 

 

258,876

 

Increase (decrease) in accrued expenses and other liabilities

 

 

45,207

 

 

 

(428,745

)

Net cash provided by (used in) operating activities

 

 

(49,257,753

)

 

 

37,794,990

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

Draws on credit facilities

 

 

743,804,552

 

 

 

380,175,324

 

Repayments of credit facility draws

 

 

(767,666,078

)

 

 

(358,518,019

)

Payments of debt issuance costs

 

 

(4,173,136

)

 

 

(3,475,314

)

Dividends paid to shareholders

 

 

(51,990,537

)

 

 

(59,282,180

)

Repurchase of shares

 

 

 

 

 

(6,100,190

)

Repayment of unsecured notes

 

 

(180,740,000

)

 

 

 

Proceeds from issuance of unsecured notes

 

 

326,604,000

 

 

 

 

Proceeds from shares issued in connection with dividend reinvestment plan

 

 

 

 

 

6,253

 

Net cash provided by (used in) financing activities

 

 

65,838,801

 

 

 

(47,194,126

)

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents (including restricted cash)

 

 

16,581,049

 

 

 

(9,399,136

)

Cash and cash equivalents (including restricted cash) at beginning of period

 

 

20,006,580

 

 

 

44,848,539

 

Cash and cash equivalents (including restricted cash) at end of period

 

$

36,587,629

 

 

$

35,449,403

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

Interest payments

 

$

32,810,366

 

 

$

34,765,953

 

 

 

See accompanying notes to the consolidated financial statements.

5


 

 

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited)

September 30, 2021

 

Issuer

 

Instrument

 

Ref

 

Floor

 

 

Spread

 

 

Total

Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Debt Investments (A)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unanet, Inc.

 

First Lien Delayed Draw Term Loan

 

LIBOR(M)

 

 

 

 

 

6.25

%

 

 

6.38

%

 

5/31/2024

 

$

5,127,551

 

 

$

5,082,285

 

 

$

5,150,510

 

 

 

0.29

%

 

N

Unanet, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

6.25

%

 

 

6.38

%

 

5/31/2024

 

$

19,897,959

 

 

 

19,779,327

 

 

 

19,957,653

 

 

 

1.11

%

 

N

Unanet, Inc.

 

Sr Secured Revolver

 

LIBOR(M)

 

 

 

 

 

6.25

%

 

 

6.38

%

 

5/31/2024

 

$

2,448,980

 

 

 

2,435,180

 

 

 

2,448,980

 

 

 

0.14

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,296,792

 

 

 

27,557,143

 

 

 

1.54

%

 

 

Airlines

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Epic Aero, Inc.

 

Unsecured Notes

 

Fixed

 

 

 

 

 

2.00

%

 

 

2.00

%

 

12/31/2022

 

$

6,506,123

 

 

 

6,506,123

 

 

 

6,349,976

 

 

 

0.35

%

 

N

Mesa Airlines, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(M)

 

 

2.00

%

 

 

5.00

%

 

 

7.00

%

 

9/27/2023

 

$

1,416,064

 

 

 

1,406,554

 

 

 

1,416,064

 

 

 

0.08

%

 

N

Mesa Airlines, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

2.00

%

 

 

5.00

%

 

 

7.00

%

 

6/5/2023

 

$

10,841,743

 

 

 

10,777,537

 

 

 

10,841,743

 

 

 

0.60

%

 

N

One Sky Flight, LLC

 

First Lien Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

7.50

%

 

 

8.50

%

 

12/27/2024

 

$

17,026,431

 

 

 

16,795,287

 

 

 

17,026,431

 

 

 

0.96

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35,485,501

 

 

 

35,634,214

 

 

 

1.99

%

 

 

Automobiles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALCV Purchaser, Inc. (AutoLenders)

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.75

%

 

 

7.75

%

 

2/25/2026

 

$

8,523,951

 

 

 

8,404,547

 

 

 

8,711,478

 

 

 

0.49

%

 

G/N

ALCV Purchaser, Inc. (AutoLenders)

 

First Lien Revolver

 

LIBOR(M)

 

 

1.00

%

 

 

6.75

%

 

 

7.75

%

 

2/25/2026

 

$

 

 

 

(9,106

)

 

 

 

 

 

 

 

G/K/N

Autoalert, LLC

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.25

%

 

 

8.75

%

 

 

10.00

%

 

1/1/2023

 

$

41,207,522

 

 

 

41,189,007

 

 

 

39,806,466

 

 

 

2.22

%

 

N

Autoalert, LLC

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.25

%

 

 

8.75

%

 

 

10.00

%

 

1/1/2023

 

$

16,307,846

 

 

 

16,290,963

 

 

 

15,753,379

 

 

 

0.87

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

65,875,411

 

 

 

64,271,323

 

 

 

3.58

%

 

 

Building Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Porcelain Acquisition Corporation (Paramount)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

4/30/2027

 

$

6,253,991

 

 

 

6,133,977

 

 

 

6,216,467

 

 

 

0.35

%

 

N

Porcelain Acquisition Corporation (Paramount)

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

4/30/2027

 

$

 

 

 

(50,027

)

 

 

(16,122

)

 

 

 

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,083,950

 

 

 

6,200,345

 

 

 

0.35

%

 

 

Capital Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pico Quantitative Trading, LLC

 

First Lien Term Loan (1.0% Exit Fee)

 

LIBOR(S)

 

 

1.50

%

 

 

7.25

%

 

 

8.75

%

 

2/7/2025

 

$

21,791,007

 

 

 

21,099,107

 

 

 

22,008,917

 

 

 

1.23

%

 

L/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Services & Supplies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thermostat Purchaser III, Inc. (Reedy Industries)

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

0.75

%

 

 

7.25

%

 

 

8.00

%

 

8/31/2029

 

$

7,767,802

 

 

 

7,652,344

 

 

 

7,666,821

 

 

 

0.43

%

 

N

Thermostat Purchaser III, Inc. (Reedy Industries)

 

Second Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

0.75

%

 

 

7.25

%

 

 

8.00

%

 

8/31/2029

 

$

 

 

 

(9,863

)

 

 

(17,280

)

 

 

 

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,642,481

 

 

 

7,649,541

 

 

 

0.43

%

 

 

Communications Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avanti Communications Jersey Limited (United Kingdom)

 

1.25 Lien Term Loan

 

Fixed

 

 

 

 

12.50% PIK

 

 

 

12.50

%

 

6/30/2022

 

$

255,130

 

 

 

255,130

 

 

 

255,130

 

 

 

0.01

%

 

H/N

Avanti Communications Jersey Limited (United Kingdom)

 

1.5 Lien Delayed Draw Term Loan

 

Fixed

 

 

 

 

12.50% PIK

 

 

 

12.50

%

 

6/30/2022

 

$

1,504,881

 

 

 

1,504,881

 

 

 

1,504,881

 

 

 

0.09

%

 

H/N

Avanti Communications Jersey Limited (United Kingdom)

 

1.5 Lien Term Loan

 

Fixed

 

 

 

 

12.50% PIK

 

 

 

12.50

%

 

6/30/2022

 

$

350,574

 

 

 

323,186

 

 

 

350,574

 

 

 

0.02

%

 

H/N

Avanti Communications Jersey Limited (United Kingdom)

 

1.25 Lien Term Loan

 

Fixed

 

 

 

 

12.50% PIK

 

 

 

12.50

%

 

6/30/2022

 

$

866,989

 

 

 

866,989

 

 

 

866,989

 

 

 

0.05

%

 

H/N

Avanti Communications Group, PLC (United Kingdom)

 

Sr New Money Initial Note

 

Fixed

 

 

 

 

9.00% PIK

 

 

 

 

 

10/1/2022

 

$

1,592,934

 

 

 

1,591,586

 

 

 

403,012

 

 

 

0.02

%

 

C/E/G/H/N

Avanti Communications Group, PLC (United Kingdom)

 

Sr Second-Priority PIK Toggle Note

 

Fixed

 

 

 

 

9.00% PIK

 

 

 

 

 

10/1/2022

 

$

4,064,721

 

 

 

4,064,219

 

 

 

1,028,374

 

 

 

0.06

%

 

C/E/G/H/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,605,991

 

 

 

4,408,960

 

 

 

0.25

%

 

 

Construction and Engineering

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hylan Datacom & Electrical, LLC

 

First Lien Incremental Term Loan

 

LIBOR(M)

 

 

1.00

%

 

5.50% Cash + 4.50% PIK

 

 

 

 

 

7/25/2022

 

$

2,762,103

 

 

 

2,748,333

 

 

 

1,818,845

 

 

 

0.10

%

 

C/N

Hylan Datacom & Electrical, LLC

 

First Lien Term Loan (3.15% Exit Fee)

 

LIBOR(M)

 

 

1.00

%

 

5.50% Cash + 4.50% PIK

 

 

 

 

 

7/25/2022

 

$

15,006,548

 

 

 

14,982,182

 

 

 

9,881,812

 

 

 

0.55

%

 

C/L/N

Hylan Datacom & Electrical, LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

10.00

%

 

 

11.00

%

 

7/25/2022

 

$

368,944

 

 

 

368,944

 

 

 

368,944

 

 

 

0.02

%

 

N

Sunland Asphalt & Construction, LLC

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

1/13/2026

 

$

2,189,564

 

 

 

2,151,073

 

 

 

2,167,668

 

 

 

0.12

%

 

N

Sunland Asphalt & Construction, LLC

 

First Lien Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

1/13/2022

 

$

41,006

 

 

 

32,764

 

 

 

27,474

 

 

 

 

 

N

Sunland Asphalt & Construction, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

1/13/2026

 

$

6,511,714

 

 

 

6,398,538

 

 

 

6,446,597

 

 

 

0.36

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26,681,834

 

 

 

20,711,340

 

 

 

1.15

%

 

 

 

6


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

September 30, 2021

 

 

 

Issuer

 

Instrument

 

Ref

 

Floor

 

 

Spread

 

 

Total

Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Debt Investments (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Finance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Barri Financial Group, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.75

%

 

 

8.75

%

 

6/30/2026

 

$

14,687,986

 

 

$

14,409,704

 

 

$

14,834,866

 

 

 

0.83

%

 

N

Barri Financial Group, LLC

 

First Lien Incremental Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

7.75

%

 

 

8.75

%

 

6/30/2026

 

$

12,873,334

 

 

 

12,554,287

 

 

 

13,002,067

 

 

 

0.72

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26,963,991

 

 

 

27,836,933

 

 

 

1.55

%

 

 

Distributors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colony Display, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

6/30/2026

 

$

6,899,594

 

 

 

6,769,152

 

 

 

6,823,699

 

 

 

0.38

%

 

N

Colony Display, LLC

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

6/30/2026

 

$

 

 

 

(67,259

)

 

 

(38,921

)

 

 

 

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,701,893

 

 

 

6,784,778

 

 

 

0.38

%

 

 

Diversified Consumer Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Razor Group GmbH (Germany)

 

First Lien Delayed Draw Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

9.00

%

 

 

10.00

%

 

9/30/2025

 

$

24,418,325

 

 

 

24,727,595

 

 

 

24,318,098

 

 

 

1.35

%

 

H/N

Razor Group GmbH (Germany)

 

First Lien Sr Secured Convertible Term Loan

 

Fixed

 

 

 

 

3.50% Cash + 3.50% PIK

 

 

 

7.00

%

 

10/2/2023

 

$

4,467,084

 

 

 

4,467,084

 

 

 

6,026,096

 

 

 

0.34

%

 

H/N

Spark Networks, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.50

%

 

 

8.00

%

 

 

9.50

%

 

7/1/2023

 

$

16,801,858

 

 

 

16,513,519

 

 

 

16,632,159

 

 

 

0.93

%

 

N

Spark Networks, Inc.

 

First Lien Term Loan B

 

LIBOR(Q)

 

 

1.50

%

 

 

8.00

%

 

 

9.50

%

 

7/1/2023

 

$

1,042,916

 

 

 

1,021,018

 

 

 

1,032,382

 

 

 

0.06

%

 

N

Spark Networks, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.50

%

 

 

8.00

%

 

 

9.50

%

 

7/1/2023

 

$

 

 

 

(15,557

)

 

 

(7,544

)

 

 

 

 

K/N

Thras.io, LLC

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

12/18/2026

 

$

9,914,785

 

 

 

9,693,093

 

 

 

10,013,933

 

 

 

0.56

%

 

N

Thras.io, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

12/18/2026

 

$

14,947,289

 

 

 

14,605,989

 

 

 

15,096,762

 

 

 

0.84

%

 

N

Thras.io, LLC

 

First Lien Incremental Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

12/18/2026

 

$

 

 

 

(43,938

)

 

 

87,877

 

 

 

 

 

K/N

Thras.io, LLC

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

12/18/2026

 

$

8,765,571

 

 

 

8,721,743

 

 

 

8,853,227

 

 

 

0.49

%

 

N

Whele, LLC (Perch)

 

First Lien Incremental Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

7.50

%

 

 

8.50

%

 

10/15/2025

 

$

20,323,258

 

 

 

20,495,626

 

 

 

20,485,845

 

 

 

1.14

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100,186,172

 

 

 

102,538,835

 

 

 

5.71

%

 

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2-10 Holdco, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

0.75

%

 

 

6.00

%

 

 

6.75

%

 

3/26/2026

 

$

8,313,506

 

 

 

8,273,026

 

 

 

8,303,529

 

 

 

0.46

%

 

N

2-10 Holdco, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

0.75

%

 

 

6.00

%

 

 

6.75

%

 

3/26/2026

 

$

 

 

 

(1,683

)

 

 

(868

)

 

 

 

 

K/N

36th Street Capital Partners Holdings, LLC

 

Senior Note

 

Fixed

 

 

 

 

 

12.00

%

 

 

12.00

%

 

11/30/2025

 

$

43,793,028

 

 

 

43,793,028

 

 

 

43,793,028

 

 

 

2.44

%

 

E/F/N

Credit Suisse AG (Cayman Islands)

 

Asset-Backed Credit Linked Notes

 

LIBOR(Q)

 

 

 

 

 

9.50

%

 

 

9.69

%

 

4/12/2025

 

$

38,000,000

 

 

 

38,000,000

 

 

 

31,616,000

 

 

 

1.76

%

 

H/I/N

Oasis Financial, LLC

 

Second Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

8.50

%

 

 

9.50

%

 

7/5/2026

 

$

17,633,544

 

 

 

17,319,890

 

 

 

17,386,674

 

 

 

0.97

%

 

N

Worldremit Group Limited (United Kingdom)

 

First Lien Term Loan (3.0% Exit Fee)

 

LIBOR(Q)

 

 

1.00

%

 

 

9.25

%

 

 

10.25

%

 

2/11/2025

 

$

43,629,951

 

 

 

42,875,066

 

 

 

42,787,893

 

 

 

2.39

%

 

H/L/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

150,259,327

 

 

 

143,886,256

 

 

 

8.02

%

 

 

Diversified Telecommunication Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aventiv Technologies, Inc. (Securus)

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.25

%

 

 

9.25

%

 

11/1/2025

 

$

25,846,154

 

 

 

25,695,467

 

 

 

23,901,231

 

 

 

1.33

%

 

 

MetroNet Systems Holdings, LLC

 

Second Lien Term Loan

 

LIBOR(M)

 

 

0.75

%

 

 

7.00

%

 

 

7.75

%

 

6/2/2029

 

$

4,016,257

 

 

 

3,957,828

 

 

 

4,005,413

 

 

 

0.22

%

 

N

MetroNet Systems Holdings, LLC

 

Second Lien Delayed Draw Term Loan

 

LIBOR(M)

 

 

0.75

%

 

 

7.00

%

 

 

7.75

%

 

6/2/2029

 

$

8,268,764

 

 

 

8,109,039

 

 

 

8,246,439

 

 

 

0.46

%

 

N

Telarix, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

11/19/2023

 

$

7,331,250

 

 

 

7,277,542

 

 

 

6,283,614

 

 

 

0.35

%

 

N

Telarix, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

11/19/2023

 

$

 

 

 

(2,375

)

 

 

(51,036

)

 

 

 

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45,037,501

 

 

 

42,385,661

 

 

 

2.36

%

 

 

Electric Utilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conergy Asia & ME Pte. Ltd. (Singapore)

 

First Lien Term Loan

 

Fixed

 

 

 

 

 

 

 

 

 

 

12/31/2021

 

$

2,110,141

 

 

 

2,110,141

 

 

 

971,298

 

 

 

0.05

%

 

D/F/H/N

Kawa Solar Holdings Limited (Conergy) (Cayman Islands)

 

Bank Guarantee Credit Facility

 

Fixed

 

 

 

 

 

 

 

 

 

 

12/31/2021

 

$

6,578,877

 

 

 

6,578,877

 

 

 

101,315

 

 

 

0.01

%

 

D/F/H/N

Kawa Solar Holdings Limited (Conergy) (Cayman Islands)

 

Revolving Credit Facility

 

Fixed

 

 

 

 

 

 

 

 

 

 

12/31/2021

 

$

5,535,517

 

 

 

5,535,517

 

 

 

2,011,053

 

 

 

0.11

%

 

D/F/H/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,224,535

 

 

 

3,083,666

 

 

 

0.17

%

 

 

Health Care Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appriss Health, LLC (PatientPing)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

5/6/2027

 

$

8,167,961

 

 

 

8,026,908

 

 

 

8,078,113

 

 

 

0.45

%

 

N

Appriss Health, LLC (PatientPing)

 

First Lien Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

5/6/2027

 

$

 

 

 

(10,166

)

 

 

(5,990

)

 

 

 

 

K/N

CareATC, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

3/14/2024

 

$

8,342,620

 

 

 

8,249,661

 

 

 

8,426,046

 

 

 

0.47

%

 

N

CareATC, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

3/14/2024

 

$

 

 

 

(6,090

)

 

 

 

 

 

 

 

K/N

ESO Solutions, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

5/3/2027

 

$

14,702,329

 

 

 

14,420,312

 

 

 

14,658,222

 

 

 

0.82

%

 

N

ESO Solutions, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

5/3/2027

 

$

4,594,478

 

 

 

4,504,586

 

 

 

4,580,694

 

 

 

0.26

%

 

N

ESO Solutions, Inc.

 

First Lien Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

5/3/2027

 

$

 

 

 

(32,634

)

 

 

(5,251

)

 

 

 

 

K/N

Edifecs, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

9/21/2026

 

$

1,378,472

 

 

 

1,348,883

 

 

 

1,430,854

 

 

 

0.08

%

 

N

Gainwell Acquisition Corp.

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

10/2/2028

 

$

5,727,820

 

 

 

5,699,181

 

 

 

5,802,281

 

 

 

0.32

%

 

N

Sandata Technologies, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

 

 

 

6.00

%

 

 

6.19

%

 

7/23/2024

 

$

20,250,000

 

 

 

20,063,934

 

 

 

20,452,500

 

 

 

1.14

%

 

N

Sandata Technologies, LLC

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

 

 

 

6.00

%

 

 

6.19

%

 

7/23/2024

 

$

 

 

 

(19,598

)

 

 

 

 

 

 

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62,244,977

 

 

 

63,417,469

 

 

 

3.54

%

 

 

 

7


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

September 30, 2021

 

 

Issuer

 

Instrument

 

Ref

 

Floor

 

 

Spread

 

 

Total

Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Debt Investments (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare Providers and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INH Buyer, Inc. (IMS Health)

 

First Lien Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

6/28/2028

 

$

4,500,000

 

 

$

4,412,417

 

 

$

4,494,375

 

 

 

0.25

%

 

N

Team Services Group, LLC

 

Second Lien Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

9.00

%

 

 

10.00

%

 

11/13/2028

 

$

25,000,000

 

 

 

24,250,133

 

 

 

25,062,500

 

 

 

1.40

%

 

G/N

Team Services Group, LLC

 

Second Lien Incremental Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

9.00

%

 

 

10.00

%

 

11/13/2028

 

$

2,855,847

 

 

 

2,827,289

 

 

 

2,862,987

 

 

 

0.16

%

 

N

Tempus, LLC (Epic Staffing)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

2/5/2027

 

$

4,064,037

 

 

 

3,988,441

 

 

 

4,145,318

 

 

 

0.23

%

 

N

Tempus, LLC (Epic Staffing)

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

2/5/2027

 

$

 

 

 

(14,422

)

 

 

15,811

 

 

 

 

 

K/N

Tempus, LLC (Epic Staffing)

 

First Lien Incremental Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

2/5/2027

 

$

 

 

 

(32,939

)

 

 

65,878

 

 

 

 

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35,430,919

 

 

 

36,646,869

 

 

 

2.04

%

 

 

Hotels, Restaurants and Leisure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fishbowl, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

 

 

 

9.75

%

 

 

9.94

%

 

1/26/2022

 

$

26,805,688

 

 

 

26,760,830

 

 

 

10,534,635

 

 

 

0.59

%

 

N

Pegasus Business Intelligence, LP (Onyx Centersource)

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.25

%

 

 

9.25

%

 

12/20/2021

 

$

5,648,822

 

 

 

5,753,482

 

 

 

4,987,910

 

 

 

0.28

%

 

N

Pegasus Business Intelligence, LP (Onyx Centersource)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.25

%

 

 

9.25

%

 

12/20/2021

 

$

13,510,298

 

 

 

13,753,534

 

 

 

11,929,593

 

 

 

0.66

%

 

N

Pegasus Business Intelligence, LP (Onyx Centersource)

 

Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

8.25

%

 

 

9.25

%

 

12/20/2021

 

$

671,356

 

 

 

683,468

 

 

 

592,807

 

 

 

0.03

%

 

N

Pegasus Business Intelligence, LP (Onyx Centersource)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.25

%

 

 

9.25

%

 

9/24/2024

 

$

373,829

 

 

 

304,175

 

 

 

373,829

 

 

 

0.02

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47,255,489

 

 

 

28,418,774

 

 

 

1.58

%

 

 

Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AmeriLife Holdings, LLC

 

Second Lien Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

8.50

%

 

 

9.50

%

 

3/18/2028

 

$

21,356,400

 

 

 

20,984,240

 

 

 

21,569,964

 

 

 

1.20

%

 

N

AmeriLife Holdings, LLC

 

Second Lien Incremental Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

8.50

%

 

 

9.50

%

 

3/18/2028

 

$

7,454,593

 

 

 

7,334,537

 

 

 

7,529,139

 

 

 

0.43

%

 

N

IT Parent, LLC (Insurance Technologies)

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

10/1/2026

 

$

4,342,188

 

 

 

4,268,807

 

 

 

4,385,609

 

 

 

0.24

%

 

N

IT Parent, LLC (Insurance Technologies)

 

First Lien Incremental Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

10/1/2026

 

$

553,599

 

 

 

543,359

 

 

 

559,135

 

 

 

0.03

%

 

N

IT Parent, LLC (Insurance Technologies)

 

Sr Secured Revolver

 

LIBOR(M)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

10/1/2026

 

$

166,667

 

 

 

156,137

 

 

 

166,667

 

 

 

0.01

%

 

N

Peter C. Foy & Associates Insurance Services, LLC (PCF Insurance)

 

First Lien Delayed Draw Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

3/31/2026

 

$

3,988,428

 

 

 

3,916,222

 

 

 

4,028,312

 

 

 

0.22

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,203,302

 

 

 

38,238,826

 

 

 

2.13

%

 

 

Internet and Catalog Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Live Auctioneers, LLC

 

First Lien Last Out B-2 Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.76

%

 

 

7.76

%

 

5/21/2025

 

$

13,714,828

 

 

 

13,527,297

 

 

 

13,851,976

 

 

 

0.77

%

 

N

Live Auctioneers, LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.76

%

 

 

7.76

%

 

5/21/2025

 

$

5,357,645

 

 

 

5,266,992

 

 

 

5,411,221

 

 

 

0.30

%

 

N

Syndigo, LLC

 

Second Lien Term Loan

 

LIBOR(S)

 

 

0.75

%

 

 

8.00

%

 

 

8.75

%

 

12/14/2028

 

$

12,141,870

 

 

 

11,970,982

 

 

 

12,157,047

 

 

 

0.68

%

 

G/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30,765,271

 

 

 

31,420,244

 

 

 

1.75

%

 

 

Internet Software and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquia, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

11/1/2025

 

$

16,648,997

 

 

 

16,404,656

 

 

 

16,773,864

 

 

 

0.94

%

 

N

Acquia, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

11/1/2025

 

$

144,303

 

 

 

119,592

 

 

 

144,303

 

 

 

0.01

%

 

N

Acquia, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

11/1/2025

 

$

7,906,722

 

 

 

7,749,145

 

 

 

7,966,023

 

 

 

0.44

%

 

N

Domo, Inc.

 

First Lien Delayed Draw Term Loan (7.0% Exit Fee)

 

LIBOR(M)

 

 

1.50

%

 

5.50% Cash + 2.50% PIK

 

 

 

9.50

%

 

4/1/2025

 

$

54,490,191

 

 

 

54,256,480

 

 

 

55,089,583

 

 

 

3.08

%

 

L/N

Domo, Inc.

 

First Lien PIK Term Loan

 

Fixed

 

 

 

 

9.50% PIK

 

 

 

9.50

%

 

4/1/2025

 

$

2,758,653

 

 

 

268,775

 

 

 

2,780,722

 

 

 

0.16

%

 

N

FinancialForce.com, Inc.

 

First Lien Delayed Draw Term Loan (3.0% Exit Fee)

 

LIBOR(M)

 

 

2.75

%

 

 

6.75

%

 

 

9.50

%

 

2/1/2024

 

$

28,000,000

 

 

 

27,710,802

 

 

 

28,252,000

 

 

 

1.57

%

 

L/N

FinancialForce.com, Inc.

 

First Lien Incremental Delayed Draw Term Loan (3.0% Exit Fee)

 

LIBOR(M)

 

 

2.75

%

 

 

6.75

%

 

 

9.50

%

 

2/1/2024

 

$

9,500,000

 

 

 

9,427,453

 

 

 

9,585,500

 

 

 

0.53

%

 

L/N

Foursquare Labs, Inc.

 

First Lien Term Loan (5.0% Exit Fee)

 

LIBOR(M)

 

 

2.19

%

 

 

7.25

%

 

 

9.44

%

 

10/1/2022

 

$

33,750,000

 

 

 

33,636,413

 

 

 

33,885,000

 

 

 

1.89

%

 

L/N

Foursquare Labs, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(M)

 

 

2.19

%

 

 

7.25

%

 

 

9.44

%

 

10/1/2022

 

$

7,500,000

 

 

 

7,372,927

 

 

 

7,507,500

 

 

 

0.42

%

 

N

Foursquare Labs, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(M)

 

 

2.19

%

 

 

7.25

%

 

 

9.44

%

 

5/1/2023

 

$

2,500,000

 

 

 

2,483,315

 

 

 

2,537,500

 

 

 

0.14

%

 

N

Magenta Buyer, LLC (McAfee)

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

0.75

%

 

 

8.25

%

 

 

9.00

%

 

7/27/2029

 

$

20,000,000

 

 

 

19,713,573

 

 

 

20,000,000

 

 

 

1.11

%

 

G/N

MetricStream, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

9/28/2024

 

$

23,104,483

 

 

 

22,745,800

 

 

 

22,711,707

 

 

 

1.27

%

 

N

MetricStream, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

9/28/2024

 

$

3,554,536

 

 

 

3,492,052

 

 

 

3,494,109

 

 

 

0.19

%

 

N

Persado, Inc.

 

First Lien Delayed Draw Term Loan (4.25% Exit Fee)

 

LIBOR(M)

 

 

1.80

%

 

 

7.00

%

 

 

8.80

%

 

2/1/2025

 

$

8,782,078

 

 

 

8,721,794

 

 

 

8,738,168

 

 

 

0.49

%

 

L/N

Pluralsight, Inc.

 

First Lien Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

4/6/2027

 

$

28,401,250

 

 

 

27,865,728

 

 

 

28,429,652

 

 

 

1.58

%

 

N

Pluralsight, Inc.

 

First Lien Revolver

 

LIBOR(S)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

4/6/2027

 

$

 

 

 

(44,460

)

 

 

 

 

 

 

 

K/N

Pluralsight, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

4/6/2027

 

$

4,181,622

 

 

 

4,101,795

 

 

 

4,185,804

 

 

 

0.23

%

 

N

Quartz Holding Company (Quick Base)

 

Second Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

8.00

%

 

 

8.09

%

 

4/2/2027

 

$

9,903,019

 

 

 

9,746,120

 

 

 

9,903,019

 

 

 

0.55

%

 

N

ResearchGate GmBH (Germany)

 

First Lien Term Loan (4.0% Exit Fee)

 

EURIBOR(Q)

 

 

 

 

 

8.55

%

 

 

8.55

%

 

10/1/2022

 

6,714,000

 

 

 

8,137,143

 

 

 

8,583,588

 

 

 

0.48

%

 

H/L/N/O

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

263,909,103

 

 

 

270,568,042

 

 

 

15.08

%

 

 

 

8


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

September 30, 2021

 

 

 

Issuer

 

Instrument

 

Ref

 

Floor

 

 

Spread

 

 

Total

Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Debt Investments (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IT Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ensono, Inc.

 

Second Lien Term Loan B

 

LIBOR(S)

 

 

 

 

 

8.00

%

 

 

8.17

%

 

5/28/2029

 

$

15,000,000

 

 

$

14,855,145

 

 

$

15,210,000

 

 

 

0.85

%

 

N

Puppet, Inc.

 

First Lien Term Loan (3.0% Exit Fee)

 

LIBOR(Q)

 

 

1.00

%

 

 

8.50

%

 

 

9.50

%

 

6/19/2023

 

$

13,930,936

 

 

 

13,697,567

 

 

 

13,721,972

 

 

 

0.76

%

 

L/N

Xactly Corporation

 

First Lien Incremental Term Loan B

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

7/31/2022

 

$

4,996,644

 

 

 

4,968,102

 

 

 

4,996,644

 

 

 

0.28

%

 

N

Xactly Corporation

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

7/31/2022

 

$

2,726,918

 

 

 

2,715,165

 

 

 

2,726,918

 

 

 

0.15

%

 

N

Xactly Corporation

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

7/31/2022

 

$

6,948,120

 

 

 

6,921,265

 

 

 

6,948,120

 

 

 

0.39

%

 

N

Xactly Corporation

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

7/31/2022

 

$

 

 

 

(2,864

)

 

 

 

 

 

 

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43,154,380

 

 

 

43,603,654

 

 

 

2.43

%

 

 

Leisure Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blue Star Sports Holdings, Inc.

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

5.75% cash + 3.50% PIK

 

 

 

10.25

%

 

6/15/2024

 

$

59,527

 

 

 

58,952

 

 

 

57,694

 

 

 

 

 

N

Blue Star Sports Holdings, Inc.

 

First Lien Revolver

 

LIBOR(Q)

 

 

1.00

%

 

5.75% cash + 3.50% PIK

 

 

 

10.25

%

 

6/15/2024

 

$

119,208

 

 

 

118,122

 

 

 

115,536

 

 

 

0.01

%

 

N

Blue Star Sports Holdings, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

5.75% cash + 3.50% PIK

 

 

 

10.25

%

 

6/15/2024

 

$

1,660,226

 

 

 

1,644,137

 

 

 

1,609,091

 

 

 

0.09

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,821,211

 

 

 

1,782,321

 

 

 

0.10

%

 

 

Machinery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sonny's Enterprises, LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.75

%

 

 

7.75

%

 

8/5/2026

 

$

3,763,116

 

 

 

3,692,840

 

 

 

3,796,985

 

 

 

0.21

%

 

N

Sonny's Enterprises, LLC

 

First Lien Delayed Draw Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.75

%

 

 

7.75

%

 

8/5/2026

 

$

9,155,872

 

 

 

8,993,094

 

 

 

9,238,274

 

 

 

0.51

%

 

N

Sonny's Enterprises, LLC

 

First Lien Incremental Delayed Draw Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.75

%

 

 

7.75

%

 

8/5/2026

 

$

988,356

 

 

 

969,934

 

 

 

997,251

 

 

 

0.06

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,655,868

 

 

 

14,032,510

 

 

 

0.78

%

 

 

Media

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Khoros, LLC (Lithium)

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

10/3/2022

 

$

7,131,905

 

 

 

7,085,931

 

 

 

7,117,641

 

 

 

0.40

%

 

N

Khoros, LLC (Lithium)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

10/3/2022

 

$

20,884,731

 

 

 

20,777,530

 

 

 

20,842,961

 

 

 

1.16

%

 

N

Khoros, LLC (Lithium)

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

10/3/2022

 

$

 

 

 

(7,194

)

 

 

(3,056

)

 

 

 

 

K/N

Khoros, LLC (Lithium)

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

10/3/2022

 

$

 

 

 

(2,666

)

 

 

(910

)

 

 

 

 

K/N

NEP II, Inc.

 

Second Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

7.00

%

 

 

7.08

%

 

10/19/2026

 

$

14,500,000

 

 

 

14,006,587

 

 

 

13,986,483

 

 

 

0.78

%

 

G/N

Quora, Inc.

 

First Lien Term Loan PIK (4.0% Exit Fee)

 

Fixed

 

 

 

 

10.10% PIK

 

 

 

10.10

%

 

5/1/2024

 

$

126,926

 

 

 

126,926

 

 

 

126,418

 

 

 

0.01

%

 

L/N

Quora, Inc.

 

First Lien Term Loan (4.0% Exit Fee)

 

Fixed

 

 

 

 

10.10% PIK

 

 

 

10.10

%

 

5/1/2024

 

$

12,692,602

 

 

 

12,560,062

 

 

 

12,616,447

 

 

 

0.70

%

 

L/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54,547,176

 

 

 

54,685,984

 

 

 

3.05

%

 

 

Metal and Mining

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Neenah Foundry Company

 

First Lien Term Loan B

 

LIBOR(Q)

 

 

1.00

%

 

 

9.00

%

 

 

10.00

%

 

12/13/2022

 

$

2,718,931

 

 

 

2,631,324

 

 

 

2,718,931

 

 

 

0.15

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, Gas and Consumable Fuels

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Iracore International Holdings, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

9.00

%

 

 

10.00

%

 

4/12/2024

 

$

1,324,140

 

 

 

1,324,140

 

 

 

1,324,140

 

 

 

0.07

%

 

B/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Olaplex, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

1/8/2026

 

$

13,233,109

 

 

 

13,033,568

 

 

 

13,365,440

 

 

 

0.74

%

 

N

Olaplex, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

1/8/2026

 

$

5,072,567

 

 

 

5,029,504

 

 

 

5,123,292

 

 

 

0.29

%

 

N

Olaplex, Inc.

 

Sr Secured Revolver

 

LIBOR(M)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

1/8/2025

 

$

 

 

 

(17,989

)

 

 

 

 

 

 

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,045,083

 

 

 

18,488,732

 

 

 

1.03

%

 

 

Professional Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Applause App Quality, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

5.00

%

 

 

6.00

%

 

9/20/2022

 

$

20,616,514

 

 

 

20,530,384

 

 

 

20,616,514

 

 

 

1.15

%

 

N

Applause App Quality, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

5.00

%

 

 

6.00

%

 

9/20/2022

 

$

 

 

 

(5,903

)

 

 

 

 

 

 

 

K/N

CIBT Solutions, Inc.

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

1.00% Cash + 6.75% PIK

 

 

 

 

 

6/1/2025

 

$

8,146,376

 

 

 

7,567,314

 

 

 

4,317,579

 

 

 

0.24

%

 

C/G

GI Consilio Parent, LLC

 

Second Lien Term Loan

 

LIBOR(M)

 

 

0.50

%

 

 

7.50

%

 

 

8.00

%

 

5/14/2029

 

$

10,000,000

 

 

 

9,903,695

 

 

 

10,020,000

 

 

 

0.56

%

 

N

Dude Solutions Holdings, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

6/13/2025

 

$

16,800,247

 

 

 

16,541,682

 

 

 

16,968,250

 

 

 

0.95

%

 

N

Dude Solutions Holdings, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

6/13/2025

 

$

2,216,342

 

 

 

2,178,781

 

 

 

2,238,506

 

 

 

0.12

%

 

N

Dude Solutions Holdings, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

6/13/2025

 

$

3,609,113

 

 

 

3,509,019

 

 

 

3,681,296

 

 

 

0.21

%

 

N

Dude Solutions Holdings, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

6/13/2025

 

$

 

 

 

(31,241

)

 

 

 

 

 

 

 

K/N

iCIMS, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

9/12/2024

 

$

121,678

 

 

 

120,437

 

 

 

121,423

 

 

 

0.01

%

 

N

iCIMS, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

9/12/2024

 

$

2,351,073

 

 

 

2,322,076

 

 

 

2,346,136

 

 

 

0.13

%

 

N

iCIMS, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

9/12/2024

 

$

353,250

 

 

 

347,628

 

 

 

352,508

 

 

 

0.02

%

 

N

JobandTalent USA, Inc. (United Kingdom)

 

First Lien Delayed Draw Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

8.75

%

 

 

9.75

%

 

2/17/2025

 

$

7,969,804

 

 

 

7,826,194

 

 

 

8,073,412

 

 

 

0.45

%

 

H/N

JobandTalent USA, Inc. (United Kingdom)

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

8.75

%

 

 

9.75

%

 

2/17/2025

 

$

23,909,413

 

 

 

23,485,532

 

 

 

24,220,236

 

 

 

1.35

%

 

H/N

JobandTalent USA, Inc. (United Kingdom)

 

First Lien Incremental Delayed Draw Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

8.75

%

 

 

9.75

%

 

2/17/2025

 

$

10,620,782

 

 

 

10,426,129

 

 

 

10,758,853

 

 

 

0.60

%

 

H/N

RigUp, Inc.

 

First Lien Delayed Draw Term Loan (3.5% Exit Fee)

 

LIBOR(M)

 

 

1.50

%

 

 

7.00

%

 

 

8.50

%

 

3/1/2024

 

$

29,000,000

 

 

 

28,625,541

 

 

 

29,522,000

 

 

 

1.64

%

 

L/N

VT TopCo, Inc. (Veritext)

 

Second Lien Term Loan

 

LIBOR(M)

 

 

0.75

%

 

 

6.75

%

 

 

7.50

%

 

8/17/2026

 

$

2,666,667

 

 

 

2,649,019

 

 

 

2,686,667

 

 

 

0.15

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

135,996,287

 

 

 

135,923,380

 

 

 

7.58

%

 

 

Real Estate Management and Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greystone Affordable Housing Initiatives, LLC

 

First Lien Delayed Draw Term Loan

 

LIBOR(S)

 

 

1.25

%

 

 

6.00

%

 

 

7.25

%

 

3/2/2026

 

$

4,666,667

 

 

 

4,666,667

 

 

 

4,657,333

 

 

 

0.26

%

 

N

 

9


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

September 30, 2021

 

 

Issuer

 

Instrument

 

Ref

 

Floor

 

 

Spread

 

 

Total

Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Debt Investments (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Road and Rail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keep Truckin, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

4/8/2025

 

$

20,000,000

 

 

$

19,724,628

 

 

$

20,000,000

 

 

 

1.12

%

 

N

Keep Truckin, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

4/8/2025

 

$

9,880,937

 

 

 

9,738,949

 

 

 

9,880,937

 

 

 

0.55

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,463,577

 

 

 

29,880,937

 

 

 

1.67

%

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aras Corporation

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

3.25%Cash + 3.75%PIK

 

 

 

8.00

%

 

4/13/2027

 

$

8,806,016

 

 

 

8,641,599

 

 

 

8,735,568

 

 

 

0.49

%

 

N

Aras Corporation

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

3.25% Cash + 3.75%PIK

 

 

 

8.00

%

 

4/13/2027

 

$

 

 

 

(21,467

)

 

 

(9,305

)

 

 

 

 

K/N

Aras Corporation

 

First Lien Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

4/13/2027

 

$

 

 

 

(16,100

)

 

 

(6,979

)

 

 

 

 

K/N

Certify, Inc.

 

First Lien Delayed Draw Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

5.75

%

 

 

6.75

%

 

2/28/2024

 

$

3,188,631

 

 

 

3,159,082

 

 

 

3,188,631

 

 

 

0.18

%

 

N

Certify, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

5.75

%

 

 

6.75

%

 

2/28/2024

 

$

23,383,293

 

 

 

23,331,699

 

 

 

23,383,293

 

 

 

1.29

%

 

N

Certify, Inc.

 

Sr Secured Revolver

 

LIBOR(M)

 

 

1.00

%

 

 

5.75

%

 

 

6.75

%

 

2/28/2024

 

$

265,719

 

 

 

251,092

 

 

 

265,719

 

 

 

0.01

%

 

N

CyberGrants Holdings, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

0.75

%

 

 

6.50

%

 

 

7.25

%

 

9/8/2027

 

$

2,833,333

 

 

 

2,790,899

 

 

 

2,790,833

 

 

 

0.16

%

 

N

CyberGrants Holdings, LLC

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

0.75

%

 

 

6.50

%

 

 

7.25

%

 

9/8/2027

 

$

 

 

 

(4,123

)

 

 

(4,167

)

 

 

 

 

K/N

CyberGrants Holdings, LLC

 

First Lien Revolver

 

LIBOR(Q)

 

 

0.75

%

 

 

6.50

%

 

 

7.25

%

 

9/8/2027

 

$

 

 

 

(4,123

)

 

 

(4,167

)

 

 

 

 

K/N

Rhode Holdings, Inc. (Kaseya)

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

4.00%Cash +3.00%PIK

 

 

 

8.00

%

 

5/2/2025

 

$

1,763,279

 

 

 

1,737,483

 

 

 

1,772,095

 

 

 

0.10

%

 

N

Rhode Holdings, Inc. (Kaseya)

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

4.00%Cash +3.00%PIK

 

 

 

8.00

%

 

5/2/2025

 

$

1,523,250

 

 

 

1,502,751

 

 

 

1,530,866

 

 

 

0.09

%

 

N

Rhode Holdings, Inc. (Kaseya)

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

4.00%Cash +3.00%PIK

 

 

 

8.00

%

 

5/2/2025

 

$

4,434,666

 

 

 

4,358,338

 

 

 

4,456,839

 

 

 

0.25

%

 

N

Rhode Holdings, Inc. (Kaseya)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

4.00%Cash +3.00%PIK

 

 

 

8.00

%

 

5/2/2025

 

$

16,732,396

 

 

 

16,312,232

 

 

 

16,816,058

 

 

 

0.94

%

 

N

Rhode Holdings, Inc. (Kaseya)

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

5/2/2025

 

$

 

 

 

(15,047

)

 

 

 

 

 

 

 

K/N

Rhode Holdings, Inc. (Kaseya)

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

4.00%Cash +3.00%PIK

 

 

 

8.00

%

 

5/2/2025

 

$

 

 

 

(35,972

)

 

 

10,459

 

 

 

 

 

K/N

SEP Raptor Acquisition, Inc. (Loopio) (Canada)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

3/31/2027

 

$

10,469,484

 

 

 

10,272,917

 

 

 

10,511,362

 

 

 

0.59

%

 

H/N

SEP Raptor Acquisition, Inc. (Loopio) (Canada)

 

First Lien Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

3/31/2027

 

$

 

 

 

(21,334

)

 

 

 

 

 

 

 

H/K/N

SEP Vulcan Acquisition, Inc. (Tasktop) (Canada)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

3/16/2027

 

$

7,836,483

 

 

 

7,688,518

 

 

 

7,914,848

 

 

 

0.44

%

 

H/N

SEP Vulcan Acquisition, Inc. (Tasktop) (Canada)

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

3/16/2027

 

$

 

 

 

(20,387

)

 

 

 

 

 

 

 

H/K/N

Superman Holdings, LLC (Foundation Software)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

8/31/2027

 

$

8,753,997

 

 

 

8,564,048

 

 

 

8,929,077

 

 

 

0.50

%

 

N

Superman Holdings, LLC (Foundation Software)

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

8/31/2027

 

$

1,552,055

 

 

 

1,522,834

 

 

 

1,583,097

 

 

 

0.09

%

 

N

Superman Holdings, LLC (Foundation Software)

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

8/31/2026

 

$

 

 

 

(25,776

)

 

 

 

 

 

 

 

K/N

Syntellis Performance Solutions, Inc. (Axiom Software)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

8/2/2027

 

$

21,241,379

 

 

 

20,686,746

 

 

 

21,666,207

 

 

 

1.20

%

 

N

Backoffice Associates Holdings, LLC (Syniti)

 

First Lien Revolver

 

PRIME

 

 

 

 

 

6.75

%

 

 

10.00

%

 

4/30/2026

 

$

600,105

 

 

 

552,900

 

 

 

570,957

 

 

 

0.03

%

 

N

Backoffice Associates Holdings, LLC (Syniti)

 

First Lien Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

7.75

%

 

 

8.75

%

 

4/30/2026

 

$

12,827,250

 

 

 

12,467,794

 

 

 

12,609,186

 

 

 

0.70

%

 

N

Backoffice Associates Holdings, LLC (Syniti)

 

First Lien Incremental Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

7.75

%

 

 

8.75

%

 

4/30/2026

 

$

353,516

 

 

 

342,997

 

 

 

347,506

 

 

 

0.02

%

 

N

Oversight Systems, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.75

%

 

 

7.75

%

 

9/24/2026

 

$

4,570,208

 

 

 

4,479,058

 

 

 

4,478,804

 

 

 

0.25

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

128,498,658

 

 

 

131,536,787

 

 

 

7.33

%

 

 

Specialty Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calceus Acquisition, Inc. (Cole Haan)

 

First Lien Term Loan B

 

LIBOR(Q)

 

 

 

 

 

5.50

%

 

 

5.62

%

 

2/12/2025

 

$

433,743

 

 

 

415,465

 

 

 

380,067

 

 

 

0.02

%

 

N

Calceus Acquisition, Inc. (Cole Haan)

 

First Lien Sr Secured Notes

 

Fixed

 

 

 

 

 

9.75

%

 

 

9.75

%

 

2/19/2025

 

$

20,000,000

 

 

 

19,535,058

 

 

 

19,720,000

 

 

 

1.10

%

 

N

Hanna Andersson, LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

7/2/2026

 

$

5,000,000

 

 

 

4,902,687

 

 

 

4,940,000

 

 

 

0.28

%

 

N

USR Parent, Inc. (Staples)

 

First Lien FILO Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

8.84

%

 

 

9.84

%

 

9/12/2022

 

$

3,474,029

 

 

 

3,454,393

 

 

 

3,474,029

 

 

 

0.19

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,307,603

 

 

 

28,514,096

 

 

 

1.59

%

 

 

Textiles, Apparel and Luxury Goods

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

James Perse Enterprises, Inc.

 

First Lien Term Loan

 

LIBOR(S)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

9/8/2027

 

$

15,555,556

 

 

 

15,322,584

 

 

 

15,322,222

 

 

 

0.85

%

 

N

James Perse Enterprises, Inc.

 

First Lien Revolver

 

LIBOR(S)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

9/8/2027

 

$

 

 

 

(28,858

)

 

 

(29,167

)

 

 

 

 

K/N

WH Buyer, LLC (Anne Klein)

 

First Lien Incremental FILO Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.75

%

 

 

7.75

%

 

12/31/2025

 

$

4,071,743

 

 

 

4,032,880

 

 

 

4,112,461

 

 

 

0.23

%

 

N

WH Buyer, LLC (Anne Klein)

 

First Lien Incremental FILO Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.75

%

 

 

7.75

%

 

12/31/2025

 

$

7,804,154

 

 

 

7,733,044

 

 

 

7,882,196

 

 

 

0.44

%

 

N

WH Buyer, LLC (Anne Klein)

 

First Lien FILO Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.39

%

 

 

8.39

%

 

12/31/2025

 

$

27,664,640

 

 

 

27,461,409

 

 

 

27,941,286

 

 

 

1.56

%

 

N

WH Buyer, LLC (Anne Klein)

 

First Lien Incremental FILO Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.39

%

 

 

8.39

%

 

12/31/2025

 

$

5,307,692

 

 

 

5,266,586

 

 

 

5,360,769

 

 

 

0.30

%

 

N

Kenneth Cole Productions, Inc.

 

First Lien FILO Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

9.50

%

 

 

10.50

%

 

12/28/2023

 

$

17,286,487

 

 

 

17,223,873

 

 

 

17,182,768

 

 

 

0.96

%

 

N

PSEB, LLC (Eddie Bauer)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.50

%

 

 

8.00

%

 

 

9.50

%

 

10/12/2023

 

$

17,989,003

 

 

 

17,758,686

 

 

 

17,989,003

 

 

 

1.00

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

94,770,204

 

 

 

95,761,538

 

 

 

5.34

%

 

 

Tobacco Related

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Juul Labs, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.50

%

 

 

8.00

%

 

 

9.50

%

 

8/2/2023

 

$

26,190,495

 

 

 

26,059,487

 

 

 

26,138,115

 

 

 

1.46

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wireless Telecommunication Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OpenMarket, Inc. (Infobip) (United Kingdom)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

0.75

%

 

 

6.25

%

 

 

7.00

%

 

9/17/2016

 

$

10,000,000

 

 

 

9,750,000

 

 

 

9,750,000

 

 

 

0.54

%

 

H/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt Investments - 194.3% of Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,611,645,212

 

 

 

1,582,466,594

 

 

 

88.21

%

 

 

10


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

September 30, 2021

 

 

 

Issuer

 

Instrument

 

 

 

 

 

 

 

 

 

Expiration

 

Shares

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automobiles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Autoalert Acquisition Co, LLC

 

Warrants to Purchase LLC Interest

 

 

 

 

 

 

 

 

 

6/28/2030

 

 

7

 

 

$

2,910,423

 

 

$

2,924,771

 

 

 

0.16

%

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pico Quantitative Trading Holdings, LLC

 

Warrants to Purchase Membership Units

 

 

 

 

 

 

 

 

 

2/7/2030

 

 

287

 

 

 

645,121

 

 

 

2,471,902

 

 

 

0.14

%

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemicals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AGY Equity, LLC

 

Class A Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

1,786,785

 

 

 

485,322

 

 

 

190,167

 

 

 

0.01

%

 

D/E/N

AGY Equity, LLC

 

Class B Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

1,250,749

 

 

 

 

 

 

 

 

 

 

 

D/E/N

AGY Equity, LLC

 

Class C Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

982,732

 

 

 

 

 

 

 

 

 

 

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

485,322

 

 

 

190,167

 

 

 

0.01

%

 

 

Communications Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avanti Communications Group, PLC (United Kingdom)

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

26,576,710

 

 

 

4,902,674

 

 

 

 

 

 

 

 

D/H/N/O

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diversified Consumer Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Razor Group GmbH (Germany)

 

Warrants to Purchase Preferred Series A1 Shares

 

 

 

 

 

 

 

 

 

4/28/2028

 

 

516

 

 

 

 

 

 

3,663,887

 

 

 

0.20

%

 

D/E/H/N

TVG-Edmentum Holdings, LLC

 

Series B-1 Common Units

 

 

 

 

 

 

 

 

 

 

 

 

17,858,122

 

 

 

14,820,592

 

 

 

33,996,624

 

 

 

1.89

%

 

B/E/N

TVG-Edmentum Holdings, LLC

 

Series B-2 Common Units

 

 

 

 

 

 

 

 

 

 

 

 

17,858,122

 

 

 

13,421,162

 

 

 

33,996,624

 

 

 

1.90

%

 

B/D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,241,754

 

 

 

71,657,135

 

 

 

3.99

%

 

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36th Street Capital Partners Holdings, LLC

 

Membership Units

 

 

 

 

 

 

 

 

 

 

 

 

24,740,806

 

 

 

24,740,806

 

 

 

31,746,000

 

 

 

1.77

%

 

E/F/N

Conventional Lending TCP Holdings, LLC

 

Membership Units

 

 

 

 

 

 

 

 

 

 

 

 

19,045,869

 

 

 

19,045,869

 

 

 

18,900,000

 

 

 

1.05

%

 

E/F/I/N

GACP I, LP (Great American Capital)

 

Membership Units

 

 

 

 

 

 

 

 

 

 

 

 

460,486

 

 

 

460,486

 

 

 

1,078,080

 

 

 

0.06

%

 

E/I/N

GACP II, LP (Great American Capital)

 

Membership Units

 

 

 

 

 

 

 

 

 

 

 

 

13,370,590

 

 

 

13,370,590

 

 

 

13,417,920

 

 

 

0.75

%

 

E/I/N

Worldremit Group Limited (United Kingdom)

 

Warrants to Purchase Series D Stock

 

 

 

 

 

 

 

 

 

2/11/2031

 

 

34,820

 

 

 

 

 

 

841,599

 

 

 

0.05

%

 

D/E/H/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

57,617,751

 

 

 

65,983,599

 

 

 

3.68

%

 

 

Electric Utilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conergy Asia Holdings Limited (United Kingdom)

 

Class B Shares

 

 

 

 

 

 

 

 

 

 

 

 

1,000,000

 

 

 

1,000,000

 

 

 

 

 

 

 

 

D/E/F/H/N

Conergy Asia Holdings Limited (United Kingdom)

 

Ordinary Shares

 

 

 

 

 

 

 

 

 

 

 

 

5,318,860

 

 

 

7,833,333

 

 

 

 

 

 

 

 

D/E/F/H/N

Kawa Solar Holdings Limited (Conergy) (Cayman Islands)

 

Ordinary Shares

 

 

 

 

 

 

 

 

 

 

 

 

2,332,594

 

 

 

 

 

 

 

 

 

 

 

D/E/F/H/N

Kawa Solar Holdings Limited (Conergy) (Cayman Islands)

 

Series B Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

93,023

 

 

 

1,395,349

 

 

 

 

 

 

 

 

D/E/F/H/N

Utilidata, Inc.

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

29,094

 

 

 

216,336

 

 

 

 

 

 

 

 

D/E/N

Utilidata, Inc.

 

Series C Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

257,369

 

 

 

153,398

 

 

 

156,000

 

 

 

0.01

%

 

D/E/N

Utilidata, Inc.

 

Series CC Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

500,000

 

 

 

500,000

 

 

 

1,000

 

 

 

 

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,098,416

 

 

 

157,000

 

 

 

0.01

%

 

 

Electronic Equipment, Instruments and Components

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Soraa, Inc.

 

Warrants to Purchase Preferred Stock

 

 

 

 

 

 

 

 

 

8/29/2024

 

 

3,071,860

 

 

 

478,899

 

 

 

 

 

 

 

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Equipment and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GlassPoint, Inc.

 

Warrants to Purchase Common Stock

 

 

 

 

 

 

 

 

 

9/12/2029

 

 

16

 

 

 

275,200

 

 

 

271,030

 

 

 

0.02

%

 

D/E/N

 

11


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

September 30, 2021

 

 

 

Issuer

 

Instrument

 

 

 

 

 

 

 

 

 

Expiration

 

Shares

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Equity Securities (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Software and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domo, Inc.

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

49,792

 

 

$

1,543,054

 

 

$

4,204,436

 

 

 

0.24

%

 

D

FinancialForce.com, Inc.

 

Warrants to Purchase Series C Preferred Stock

 

 

 

 

 

 

 

 

 

1/30/2029

 

 

1,125,000

 

 

 

287,985

 

 

 

619,412

 

 

 

0.03

%

 

D/E/N

Foursquare Labs, Inc.

 

Warrants to Purchase Series E Preferred Stock

 

 

 

 

 

 

 

 

 

5/4/2027

 

 

2,062,500

 

 

 

508,805

 

 

 

1,175,429

 

 

 

0.07

%

 

D/E/N

InMobi, Inc. (Singapore)

 

Warrants to Purchase Common Stock

 

 

 

 

 

 

 

 

 

8/15/2027

 

 

1,327,869

 

 

 

212,360

 

 

 

1,689,343

 

 

 

0.09

%

 

D/E/H/N

InMobi, Inc. (Singapore)

 

Warrants to Purchase Series E Preferred Stock

 

 

 

 

 

 

 

 

 

9/18/2025

 

 

1,049,996

 

 

 

276,492

 

 

 

1,449,589

 

 

 

0.08

%

 

D/E/H/N

InMobi, Inc. (Singapore)

 

Warrants to Purchase Series E Preferred Stock

 

 

 

 

 

 

 

 

 

10/3/2028

 

 

1,511,002

 

 

 

93,407

 

 

 

427,201

 

 

 

0.02

%

 

D/E/H/N

ResearchGate Corporation (Germany)

 

Warrants to Purchase Series D Preferred Stock

 

 

 

 

 

 

 

 

 

10/30/2029

 

 

333,370

 

 

 

202,001

 

 

 

116,600

 

 

 

0.01

%

 

D/E/H/N/O

SnapLogic, Inc.

 

Warrants to Purchase Series Preferred Stock

 

 

 

 

 

 

 

 

 

3/19/2028

 

 

1,860,000

 

 

 

377,722

 

 

 

5,500,000

 

 

 

0.31

%

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,501,826

 

 

 

15,182,010

 

 

 

0.85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IT Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fidelis (SVC), LLC

 

Series C Preferred Units

 

 

 

 

 

 

 

 

 

 

 

 

657,932

 

 

 

2,001,384

 

 

 

71,120

 

 

 

 

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life Sciences Tools and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Envigo RMS Holdings Corp.

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

36

 

 

 

 

 

 

790,349

 

 

 

0.04

%

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEG Parent, LLC (CORE Entertainment, Inc.)

 

Class A Units

 

 

 

 

 

 

 

 

 

 

 

 

2,720,392

 

 

 

2,772,807

 

 

 

7,196,142

 

 

 

0.41

%

 

B/D/E/N

NEG Parent, LLC (CORE Entertainment, Inc.)

 

Class A Warrants to Purchase Class A Units

 

 

 

 

 

 

 

 

 

10/17/2026

 

 

343,387

 

 

 

196,086

 

 

 

428,331

 

 

 

0.02

%

 

B/D/E/N

NEG Parent, LLC (CORE Entertainment, Inc.)

 

Class B Warrants to Purchase Class A Units

 

 

 

 

 

 

 

 

 

10/17/2026

 

 

346,794

 

 

 

198,032

 

 

 

432,581

 

 

 

0.02

%

 

B/D/E/N

Quora, Inc.

 

Warrants to Purchase Series D Preferred Stock

 

 

 

 

 

 

 

 

 

4/11/2029

 

 

507,704

 

 

 

65,245

 

 

 

169,573

 

 

 

0.01

%

 

D/E/N

SoundCloud, Ltd. (United Kingdom)

 

Warrants to Purchase Preferred Stock

 

 

 

 

 

 

 

 

 

4/29/2025

 

 

946,498

 

 

 

79,082

 

 

 

45,143

 

 

 

 

 

D/E/H/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,311,252

 

 

 

8,271,770

 

 

 

0.46

%

 

 

Oil, Gas and Consumable Fuels

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Iracore Investments Holdings, Inc.

 

Class A Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

16,207

 

 

 

4,177,710

 

 

 

4,281,547

 

 

 

0.24

%

 

B/D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anacomp, Inc.

 

Class A Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

1,255,527

 

 

 

26,711,049

 

 

 

213,440

 

 

 

0.01

%

 

D/E/F/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Semiconductors and Semiconductor Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nanosys, Inc.

 

Warrants to Purchase Preferred Stock

 

 

 

 

 

 

 

 

 

3/29/2023

 

 

800,000

 

 

 

605,266

 

 

 

962,482

 

 

 

0.05

%

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tradeshift, Inc.

 

Warrants to Purchase Series D Preferred Stock

 

 

 

 

 

 

 

 

 

3/26/2027

 

 

1,712,930

 

 

 

577,843

 

 

 

1,483,265

 

 

 

0.08

%

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity Securities - 21.5% of Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

147,541,890

 

 

 

174,911,587

 

 

 

9.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments - 215.8% of Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,759,187,102

 

 

$

1,757,378,181

 

 

 

97.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents - 4.5% of Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

36,587,629

 

 

 

2.04

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Cash and Investments  - 220.3% of Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,793,965,810

 

 

 

100.00

%

 

M

 

12


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

September 30, 2021

 

 

 

 

Notes to Consolidated Schedule of Investments:

(A)

Debt investments include investments in bank debt that generally are bought and sold among institutional investors in transactions not subject to registration under the Securities Act of 1933. Such transactions are generally subject to contractual restrictions, such as approval of the agent or borrower.

(B)

Non-controlled affiliate – as defined under the Investment Company Act of 1940 (ownership of between 5% and 25% of the outstanding voting  securities of this issuer). See Consolidated Schedule of Changes in Investments in Affiliates.

(C)

Non-accruing debt investment.

(D)

Other non-income producing investment.

(E)

Restricted security. (See Note 2)

(F)

Controlled issuer – as defined under the Investment Company Act of 1940 (ownership of 25% or more of the outstanding voting securities of this issuer). Investment is not more than 50% of the outstanding voting securities of the issuer nor deemed to be a significant subsidiary.  See Consolidated Schedule of Changes in Investments in Affiliates.

(G)

Investment has been segregated to collateralize certain unfunded commitments.

(H)

Non-U.S. company or principal place of business outside the U.S. and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(I)

Deemed an investment company under Section 3(c) of the Investment Company Act and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act.  Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(J)

Publicly traded company with a market capitalization greater than $250 million and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(K)

Negative balances relate to an unfunded commitment that was acquired and/or valued at a discount.

(L)

In addition to the stated coupon, investment has an exit fee payable upon repayment of the loan in an amount equal to the percentage of the original principal amount shown.

(M)

All cash and investments, except those referenced in Notes G above, are pledged as collateral under certain debt as described in Note 4 to the Consolidated Financial Statements.

(N)

Inputs in the valuation of this investment included certain unobservable inputs that were significant to the valuation as a whole.

(O)

Investment denominated in foreign currency. Amortized cost and fair value converted from foreign currency to US dollars. Foreign currency denominated investments are generally hedged for currency exposure.

LIBOR or EURIBOR resets monthly (M), quarterly (Q), semiannually (S), or annually (A).

Aggregate acquisitions and aggregate dispositions of investments, other than government securities, totaled $575,112,380 and $507,505,120, respectively, for the nine months ended September 30, 2021. Aggregate acquisitions include investment assets received as payment in kind. Aggregate dispositions include principal paydowns on and maturities of debt investments.  The total value of restricted securities and bank debt as of September 30, 2021 was $1,753,173,745 or 97.7% of total cash and investments of the Company. As of September 30, 2021, approximately 12.9% of the total assets of the Company were not qualifying assets under Section 55(a) of the 1940 Act.

See accompanying notes to the consolidated financial statements.

 

 

 

13


 

 

BlackRock TCP Capital Corp.

Consolidated Schedule of Investments

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

Fair

 

 

Cash and

 

 

 

Issuer

 

Instrument

 

Ref

 

Floor

 

 

Spread

 

 

Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Value

 

 

Investments

 

 

Notes

Debt Investments (A)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unanet, Inc.

 

First Lien Delayed Draw Term Loan

 

LIBOR(M)

 

 

 

 

 

6.25

%

 

 

6.44

%

 

5/31/2024

 

$

5,127,551

 

 

$

5,072,277

 

 

$

5,005,102

 

 

 

0.30

%

 

N

Unanet, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

6.25

%

 

 

6.44

%

 

5/31/2024

 

$

19,897,959

 

 

19,747,253

 

 

19,579,592

 

 

 

1.19

%

 

N

Unanet, Inc.

 

Sr Secured Revolver

 

LIBOR(M)

 

 

 

 

 

6.25

%

 

 

6.44

%

 

5/31/2024

 

$

2,448,980

 

 

2,431,281

 

 

2,409,796

 

 

 

0.15

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,250,811

 

 

26,994,490

 

 

 

1.64

%

 

 

Airlines

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mesa Airlines, Inc.

 

Aircraft Acquisition Incremental Loan

 

LIBOR(M)

 

 

2.00

%

 

 

5.00

%

 

 

7.00

%

 

9/27/2023

 

$

1,947,089

 

 

1,929,445

 

 

1,888,676

 

 

 

0.11

%

 

N

Mesa Airlines, Inc.

 

Aircraft Acquisition Loan

 

LIBOR(M)

 

 

2.00

%

 

 

5.00

%

 

 

7.00

%

 

6/5/2023

 

$

15,488,204

 

 

15,358,100

 

 

15,116,487

 

 

 

0.92

%

 

N

One Sky Flight, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.50

%

 

 

8.50

%

 

12/27/2024

 

$

19,000,000

 

 

18,679,830

 

 

19,190,000

 

 

 

1.16

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35,967,375

 

 

36,195,163

 

 

 

2.19

%

 

 

Automobiles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AutoAlert, LLC

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

0.25

%

 

 

10.75

%

 

 

11.00

%

 

1/1/2022

 

$

41,207,522

 

 

41,207,522

 

 

38,776,278

 

 

 

2.35

%

 

N

AutoAlert, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

0.25

%

 

 

10.75

%

 

 

11.00

%

 

1/1/2022

 

$

16,307,846

 

 

16,307,846

 

 

15,345,683

 

 

 

0.93

%

 

N

DealerFX, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

6.25% Cash + 2.00% PIK

 

 

 

9.25

%

 

2/1/2023

 

$

16,520,125

 

 

16,365,326

 

 

16,404,484

 

 

 

0.99

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

73,880,694

 

 

70,526,445

 

 

 

4.27

%

 

 

Building Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dodge Data & Analytics, LLC

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

3/31/2021

 

$

819,552

 

 

819,552

 

 

819,552

 

 

 

0.05

%

 

N

Dodge Data & Analytics, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

3/31/2021

 

$

33,152,046

 

 

33,152,046

 

 

33,152,046

 

 

 

2.01

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33,971,598

 

 

33,971,598

 

 

 

2.06

%

 

 

Capital Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HighTower Holding, LLC

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.75

%

 

 

9.75

%

 

1/31/2026

 

$

15,080,645

 

 

14,774,280

 

 

15,080,645

 

 

 

0.91

%

 

N

HighTower Holding, LLC

 

Second Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.75

%

 

 

9.75

%

 

1/31/2026

 

$

6,169,355

 

 

6,073,309

 

 

6,169,355

 

 

 

0.37

%

 

N

HighTower Holdings

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.75

%

 

 

9.75

%

 

1/31/2026

 

$

6,249,999

 

 

6,128,534

 

 

6,249,999

 

 

 

0.38

%

 

N

Pico Quantitative Trading, LLC

 

First Lien Term Loan (1.0% Exit Fee)

 

LIBOR(Q)

 

 

1.50

%

 

 

7.25

%

 

 

8.75

%

 

2/7/2025

 

$

21,791,007

 

 

20,969,685

 

 

21,594,888

 

 

 

1.31

%

 

L/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47,945,808

 

 

49,094,887

 

 

 

2.97

%

 

 

Commercial Services and Supplies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kellermeyer Bergensons Services, LLC

 

First Lien Delayed Draw Term Loan A

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

11/7/2026

 

$

1,423,529

 

 

1,411,012

 

 

1,437,765

 

 

 

0.09

%

 

N

Kellermeyer Bergensons Services, LLC

 

First Lien Delayed Draw Term Loan B

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

11/7/2026

 

$

371,111

 

 

354,609

 

 

390,705

 

 

 

0.02

%

 

N

Kellermeyer Bergensons Services, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

11/7/2026

 

$

6,470,588

 

 

6,419,832

 

 

6,535,294

 

 

 

0.40

%

 

N

Team Software, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

 

 

 

5.50

%

 

 

5.81

%

 

9/17/2023

 

$

7,220,080

 

 

7,142,178

 

 

7,183,980

 

 

 

0.44

%

 

N

Team Software, Inc.

 

First Lien Revolver

 

LIBOR(Q)

 

 

 

 

 

5.50

%

 

 

5.81

%

 

9/17/2023

 

$

1,053,363

 

 

1,024,123

 

 

1,035,807

 

 

 

0.06

%

 

N

Team Software, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

 

 

 

5.50

%

 

 

5.81

%

 

9/17/2023

 

$

13,167,038

 

 

13,050,648

 

 

13,101,203

 

 

 

0.79

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,402,402

 

 

29,684,754

 

 

 

1.80

%

 

 

Communications Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avanti Communications Jersey Limited (United Kingdom)

 

1.25 Lien Term Loan

 

Fixed

 

 

 

 

12.5% PIK

 

 

 

12.50

%

 

5/24/2021

 

$

232,780

 

 

232,780

 

 

232,780

 

 

 

0.01

%

 

H/N

Avanti Communications Jersey Limited (United Kingdom)

 

1.5 Lien Delayed Draw Term Loan

 

Fixed

 

 

 

 

12.5% PIK

 

 

 

12.50

%

 

5/24/2021

 

$

1,373,054

 

 

1,373,054

 

 

1,373,054

 

 

 

0.08

%

 

H/N

Avanti Communications Jersey Limited (United Kingdom)

 

1.5 Lien Term Loan

 

Fixed

 

 

 

 

12.5% PIK

 

 

 

12.50

%

 

5/24/2021

 

$

319,776

 

 

294,921

 

 

319,776

 

 

 

0.02

%

 

H/N

Avanti Communications Group, PLC (United Kingdom)

 

Sr New Money Initial Note

 

Fixed

 

 

 

 

9% PIK

 

 

 

 

 

10/1/2022

 

$

1,592,934

 

 

1,591,586

 

 

637,174

 

 

 

0.04

%

 

C/E/G/H/N

Avanti Communications Group, PLC (United Kingdom)

 

Sr Second-Priority PIK Toggle Note

 

Fixed

 

 

 

 

9% PIK

 

 

 

 

 

10/1/2022

 

$

4,064,721

 

 

4,064,219

 

 

1,625,888

 

 

 

0.10

%

 

C/E/G/H/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,556,560

 

 

4,188,672

 

 

 

0.25

%

 

 

 

 

14


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

Fair

 

 

Cash and

 

 

 

Issuer

 

Instrument

 

Ref

 

Floor

 

 

Spread

 

 

Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Value

 

 

Investments

 

 

Notes

Debt Investments (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and Engineering

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hylan Datacom & Electrical, LLC

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

5.50% Cash + 4.50% PIK

 

 

 

11.00

%

 

7/25/2021

 

$

2,658,374

 

 

$

2,645,763

 

 

$

2,261,479

 

 

 

0.14

%

 

N

Hylan Datacom & Electrical, LLC

 

First Lien Term Loan (3.15% Exit Fee)

 

LIBOR(Q)

 

 

1.00

%

 

5.50% Cash + 4.50% PIK

 

 

 

11.00

%

 

7/25/2021

 

$

14,714,236

 

 

14,689,002

 

 

12,517,400

 

 

 

0.76

%

 

L/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,334,765

 

 

14,778,879

 

 

 

0.90

%

 

 

Consumer Finance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto Trakk SPV, LLC

 

First Lien Delayed Draw Term Loan

 

LIBOR(M)

 

 

0.50

%

 

 

6.50

%

 

 

7.00

%

 

12/21/2021

 

$

21,708,042

 

 

21,627,288

 

 

21,708,042

 

 

 

1.32

%

 

N

Barri Financial Group, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.75

%

 

 

8.75

%

 

10/23/2024

 

$

16,386,623

 

 

16,058,193

 

 

16,550,489

 

 

 

1.00

%

 

N

Open Lending, LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

3/11/2027

 

$

4,906,250

 

 

4,766,726

 

 

4,893,984

 

 

 

0.30

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

42,452,207

 

 

43,152,515

 

 

 

2.62

%

 

 

Diversified Consumer Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spark Networks, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.50

%

 

 

8.00

%

 

 

9.50

%

 

7/1/2023

 

$

 

 

 

(22,151

)

 

 

(12,272

)

 

 

 

 

K/N

Spark Networks, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.50

%

 

 

8.00

%

 

 

9.50

%

 

7/1/2023

 

$

19,848,972

 

 

19,372,272

 

 

19,551,237

 

 

 

1.19

%

 

N

Spark Networks, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.50

%

 

 

8.00

%

 

 

9.50

%

 

7/1/2023

 

$

1,207,065

 

 

1,171,712

 

 

1,188,959

 

 

 

0.07

%

 

N

Thras.io, LLC

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

12/18/2026

 

$

 

 

 

(248,494

)

 

 

(248,494

)

 

 

(0.02

)%

 

K/N

Thras.io, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

12/18/2026

 

$

15,060,241

 

 

14,683,735

 

 

14,683,735

 

 

 

0.89

%

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34,957,074

 

 

35,163,165

 

 

 

1.19

%

 

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36th Street Capital Partners Holdings, LLC

 

Senior Note

 

Fixed

 

 

 

 

12.00

%

 

 

12.00

%

 

11/30/2025

 

$

40,834,419

 

 

40,834,419

 

 

40,834,419

 

 

 

2.48

%

 

E/F/N

Aretec Group, Inc. (Cetera)

 

Second Lien Term Loan

 

LIBOR(M)

 

 

 

 

8.25

%

 

 

8.40

%

 

10/1/2026

 

$

27,105,263

 

 

26,876,000

 

 

25,478,947

 

 

 

1.54

%

 

G/N

Credit Suisse AG (Cayman Islands)

 

Asset-Backed Credit Linked Notes

 

LIBOR(Q)

 

 

 

 

9.50

%

 

 

11.50

%

 

4/12/2025

 

$

38,000,000

 

 

38,000,000

 

 

30,856,000

 

 

 

1.87

%

 

H/I/N

GC Agile Holdings Limited (Apex) (England)

 

First Lien Delayed Term Loan B

 

LIBOR(Q)

 

 

1.25

%

 

 

7.00

%

 

 

8.25

%

 

6/15/2025

 

$

18,788,475

 

 

18,490,655

 

 

18,675,561

 

 

 

1.13

%

 

H/N

GC Agile Holdings Limited (Apex) (England)

 

First Lien Term Loan A

 

LIBOR(Q)

 

 

1.25

%

 

 

7.00

%

 

 

8.25

%

 

6/15/2025

 

$

816,583

 

 

803,983

 

 

809,070

 

 

 

0.05

%

 

H/N

RSB-160, LLC (Lat20)

 

First Lien Delayed Draw Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

7/20/2022

 

$

1,533,333

 

 

1,518,675

 

 

1,533,333

 

 

 

0.09

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126,523,732

 

 

118,187,330

 

 

 

7.16

%

 

 

Diversified Telecommunication Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aventiv Technologies, Inc. (Securus)

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.25

%

 

 

9.25

%

 

11/1/2025

 

$

25,846,154

 

 

25,679,341

 

 

21,237,009

 

 

 

1.30

%

 

 

Telarix, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

11/19/2023

 

$

7,368,750

 

 

7,295,192

 

 

7,242,008

 

 

 

0.44

%

 

N

Telarix, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

11/19/2023

 

$

 

 

 

(3,204

)

 

 

(6,143

)

 

 

 

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32,971,329

 

 

28,472,874

 

 

 

1.74

%

 

 

Electric Utilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conergy Asia & ME Pte. Ltd (Singapore)

 

First Lien Term Loan

 

Fixed

 

 

 

 

 

 

 

 

 

 

6/30/2021

 

$

2,110,141

 

 

2,110,141

 

 

1,154,036

 

 

 

0.07

%

 

D/F/H/N

Kawa Solar Holdings Limited (Conergy) (Cayman Islands)

 

Bank Guarantee Credit Facility

 

Fixed

 

 

 

 

 

 

 

 

 

 

12/31/2021

 

$

6,578,877

 

 

6,578,877

 

 

3,336,148

 

 

 

0.20

%

 

D/F/H/N

Kawa Solar Holdings Limited (Conergy) (Cayman Islands)

 

Revolving Credit Facility

 

Fixed

 

 

 

 

 

 

 

 

 

 

12/31/2021

 

$

8,668,850

 

 

8,668,850

 

 

2,114,333

 

 

 

0.13

%

 

D/F/H/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,357,868

 

 

6,604,517

 

 

 

0.40

%

 

 

Electrical Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TCFI Amteck Holdings, LLC

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

 

 

 

6.25

%

 

 

6.56

%

 

12/31/2024

 

$

526,131

 

 

520,301

 

 

526,131

 

 

 

0.03

%

 

N

TCFI Amteck Holdings, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

 

 

 

6.25

%

 

 

6.56

%

 

12/31/2024

 

$

8,722,052

 

 

8,624,256

 

 

8,722,052

 

 

 

0.53

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,144,557

 

 

9,248,183

 

 

 

0.56

%

 

 

 

 

 

15


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020

 

 

 

Issuer

 

Instrument

 

Ref

 

Floor

 

 

Spread

 

 

Total Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Debt Investments (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Equipment and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GlassPoint Solar, Inc.

 

First Lien Incremental Term Loan (4.0% Exit Fee)

 

LIBOR(M)

 

 

2.00

%

 

 

8.50

%

 

 

 

 

8/31/2021

 

$

4,245,365

 

 

$

4,234,930

 

 

$

1,018,888

 

 

 

0.06

%

 

C/L/N

GlassPoint Solar, Inc.

 

First Lien Incremental Term Loan A

 

LIBOR(M)

 

 

2.00

%

 

 

8.50

%

 

 

10.50

%

 

8/31/2021

 

$

210,986

 

 

210,986

 

 

210,986

 

 

 

0.01

%

 

N

GlassPoint Solar, Inc.

 

First Lien Term Loan (5.0% Exit Fee)

 

LIBOR(M)

 

 

 

 

 

11.44

%

 

 

 

 

8/31/2021

 

$

2,324,588

 

 

2,283,788

 

 

557,901

 

 

 

0.03

%

 

C/L/N

Sphera Solutions, Inc. (Diamondback)

 

First Lien FILO Term Loan B

 

LIBOR(Q)

 

 

1.00

%

 

 

7.75

%

 

 

10.76

%

 

6/14/2023

 

$

23,377,259

 

 

23,115,634

 

 

23,073,355

 

 

 

1.40

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,845,338

 

 

24,861,130

 

 

 

1.50

%

 

 

Health Care Technology

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAREATC, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

3/14/2024

 

$

8,502,033

 

 

8,381,928

 

 

8,587,053

 

 

 

0.52

%

 

N

CAREATC, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

3/14/2024

 

$

-

 

 

 

(7,938

)

 

 

 

 

 

 

 

K/N

Edifecs, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.50

%

 

 

8.50

%

 

9/21/2026

 

$

1,388,889

 

 

1,355,499

 

 

1,397,222

 

 

 

0.08

%

 

N

Patient Point Network Solutions, LLC

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

8.50

%

 

 

9.50

%

 

6/26/2022

 

$

-

 

 

 

(1,824

)

 

 

 

 

 

 

 

K/N

Patient Point Network Solutions, LLC

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.50

%

 

 

8.50

%

 

6/26/2022

 

$

1,172,178

 

 

1,166,548

 

 

1,172,178

 

 

 

0.07

%

 

N

Patient Point Network Solutions, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.50

%

 

 

8.50

%

 

6/26/2022

 

$

6,081,798

 

 

6,058,408

 

 

6,081,798

 

 

 

0.37

%

 

N

Sandata Technologies, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

 

 

 

6.00

%

 

 

6.31

%

 

7/23/2024

 

$

20,250,000

 

 

20,016,127

 

 

19,723,500

 

 

 

1.20

%

 

N

Sandata Technologies, LLC

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

 

 

 

6.00

%

 

 

6.31

%

 

7/23/2024

 

$

-

 

 

 

(24,784

)

 

 

(58,500

)

 

 

 

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36,943,964

 

 

36,903,251

 

 

 

2.24

%

 

 

Healthcare Providers and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TEAM Services Group

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

9.00

%

 

 

10.00

%

 

11/13/2028

 

$

25,000,000

 

 

24,190,557

 

 

24,812,500

 

 

 

1.50

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotels, Restaurants and Leisure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fishbowl, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

 

 

 

9.75

%

 

 

10.06

%

 

1/26/2022

 

$

25,990,088

 

 

25,818,817

 

 

14,944,301

 

 

 

0.91

%

 

N

Pegasus Business Intelligence, LP (Onyx Centersource)

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.25

%

 

 

9.25

%

 

12/20/2021

 

$

5,648,822

 

 

5,753,482

 

 

4,818,445

 

 

 

0.29

%

 

N

Pegasus Business Intelligence, LP (Onyx Centersource)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.25

%

 

 

9.25

%

 

12/20/2021

 

$

13,510,298

 

 

13,732,711

 

 

11,524,284

 

 

 

0.70

%

 

N

Pegasus Business Intelligence, LP (Onyx Centersource)

 

Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

6.25

%

 

 

9.25

%

 

12/20/2021

 

$

671,356

 

 

682,522

 

 

572,666

 

 

 

0.03

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45,987,532

 

 

31,859,696

 

 

 

1.93

%

 

 

Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2-10 Holdco, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

10/31/2024

 

$

3,741,667

 

 

3,689,786

 

 

3,741,667

 

 

 

0.23

%

 

N

2-10 Holdco, Inc.

 

Sr Secured Revolver

 

LIBOR(M)

 

 

1.00

%

 

 

6.00

%

 

 

7.00

%

 

10/31/2024

 

$

-

 

 

 

(5,341

)

 

 

 

 

 

 

 

K/N

AmeriLife Holdings, LLC

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.50

%

 

 

9.50

%

 

3/18/2028

 

$

21,356,400

 

 

20,952,696

 

 

21,228,262

 

 

 

1.29

%

 

N

AmeriLife Holdings, LLC

 

Second Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.50

%

 

 

9.50

%

 

3/18/2028

 

$

7,454,593

 

 

7,324,604

 

 

7,409,865

 

 

 

0.45

%

 

N

IT Parent

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

10/1/2026

 

$

4,375,000

 

 

4,290,457

 

 

4,353,125

 

 

 

0.26

%

 

N

IT Parent

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

10/1/2026

 

$

500,000

 

 

488,014

 

 

496,875

 

 

 

0.03

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36,740,216

 

 

37,229,794

 

 

 

1.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet and Catalog Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Live Auctioneers LLC

 

First Lien Last Out B-2 Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.76

%

 

 

7.76

%

 

5/21/2025

 

$

13,820,056

 

 

13,598,260

 

 

13,571,295

 

 

 

0.82

%

 

N

Live Auctioneers LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.76

%

 

 

7.76

%

 

5/21/2025

 

$

5,398,131

 

 

5,290,496

 

 

5,300,964

 

 

 

0.32

%

 

N

Syndigo, LLC

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

0.75

%

 

 

8.00

%

 

 

8.75

%

 

12/14/2028

 

$

12,141,870

 

 

11,959,742

 

 

11,959,742

 

 

 

0.73

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30,848,498

 

 

30,832,001

 

 

 

3.08

%

 

 

 

16


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020

 

 

 

Issuer

 

Instrument

 

Ref

 

Floor

 

 

Spread

 

 

Total Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Debt Investments (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Software and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquia Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

11/1/2025

 

$

16,648,997

 

 

$

16,366,935

 

 

$

16,898,731

 

 

 

1.02

%

 

N

Acquia Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

11/1/2025

 

$

-

 

 

 

(29,118

)

 

 

 

 

 

 

 

K/N

Domo, Inc.

 

First Lien Delayed Draw Term Loan (7.0% Exit Fee)

 

LIBOR(M)

 

 

1.50

%

 

5.50% Cash + 2.50% PIK

 

 

 

9.50

%

 

4/1/2025

 

$

53,464,245

 

 

53,435,610

 

 

54,640,458

 

 

 

3.31

%

 

L/N

Domo, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

9.5% PIK

 

 

 

9.50

%

 

4/1/2025

 

$

2,566,973

 

 

77,095

 

 

2,618,312

 

 

 

0.16

%

 

N

FinancialForce.com, Inc.

 

First Lien Delayed Draw Term Loan (3.0% Exit Fee)

 

LIBOR(M)

 

 

2.75

%

 

 

6.75

%

 

 

9.50

%

 

2/1/2024

 

$

28,000,000

 

 

27,623,116

 

 

28,336,000

 

 

 

1.72

%

 

L/N

Foursquare Labs, Inc.

 

First Lien Term Loan (5.0% Exit Fee)

 

LIBOR(M)

 

 

2.19

%

 

 

7.25

%

 

 

9.44

%

 

10/1/2022

 

$

33,750,000

 

 

33,546,196

 

 

33,817,500

 

 

 

2.05

%

 

L/N

Foursquare Labs, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(M)

 

 

2.19

%

 

 

7.25

%

 

 

9.44

%

 

10/1/2022

 

$

7,500,000

 

 

7,286,941

 

 

7,477,500

 

 

 

0.45

%

 

N

Foursquare

 

First Lien Term Loan

 

LIBOR(M)

 

 

2.19

%

 

 

7.25

%

 

 

9.44

%

 

5/1/2023

 

$

2,500,000

 

 

2,475,000

 

 

2,555,000

 

 

 

0.15

%

 

N

Metricstream, Inc

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

9/28/2024

 

$

23,104,483

 

 

22,670,625

 

 

22,642,394

 

 

 

1.37

%

 

N

Persado, Inc.

 

First Lien Delayed Term Loan (4.25% Exit Fee)

 

LIBOR(M)

 

 

1.80

%

 

 

7.00

%

 

 

8.80

%

 

2/1/2025

 

$

8,782,078

 

 

8,708,373

 

 

8,694,258

 

 

 

0.53

%

 

L/N

Quartz Holding Company (Quick Base)

 

Second Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

8.00

%

 

 

8.15

%

 

4/2/2027

 

$

9,903,019

 

 

9,729,081

 

 

9,816,367

 

 

 

0.60

%

 

N

ResearchGate GmBH (Germany)

 

First Lien Term Loan (4.0% Exit Fee)

 

EURIBOR (Q)

 

 

 

 

 

8.55

%

 

 

8.55

%

 

10/1/2022

 

6,714,000

 

 

8,020,121

 

 

8,882,973

 

 

 

0.54

%

 

H/L/N/O

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

189,909,975

 

 

196,379,493

 

 

 

11.90

%

 

 

IT Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Puppet, Inc.

 

First Lien Term Loan (3.0% Exit Fee)

 

LIBOR(Q)

 

 

1.00

%

 

 

8.50

%

 

 

9.50

%

 

6/19/2023

 

$

13,930,936

 

 

13,609,649

 

 

13,680,179

 

 

 

0.83

%

 

L/N

Web.com Group Inc.

 

Second Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

7.75

%

 

 

7.90

%

 

10/11/2026

 

$

19,277,823

 

 

19,075,749

 

 

18,498,710

 

 

 

1.12

%

 

G/J

Xactly Corporation

 

First Lien Incremental Term Loan B

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

7/31/2022

 

$

4,996,644

 

 

4,943,694

 

 

4,986,650

 

 

 

0.30

%

 

N

Xactly Corporation

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

7/31/2022

 

$

2,726,918

 

 

2,705,045

 

 

2,721,464

 

 

 

0.16

%

 

N

Xactly Corporation

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

7/31/2022

 

$

6,948,120

 

 

6,898,077

 

 

6,934,224

 

 

 

0.42

%

 

N

Xactly Corporation

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.25

%

 

 

8.25

%

 

7/31/2022

 

$

-

 

 

 

(5,443

)

 

 

(1,710

)

 

 

 

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47,226,771

 

 

46,819,517

 

 

 

2.83

%

 

 

Leisure Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blue Star Sports Holdings, Inc.

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

5.75% cash + 2.00% PIK

 

 

 

8.75

%

 

6/15/2024

 

$

57,122

 

 

56,426

 

 

53,397

 

 

 

 

 

N

Blue Star Sports Holdings, Inc.

 

First Lien Revolver

 

LIBOR(Q)

 

 

1.00

%

 

5.75% cash + 2.00% PIK

 

 

 

8.75

%

 

6/15/2024

 

$

114,289

 

 

112,927

 

 

106,837

 

 

 

0.01

%

 

N

Blue Star Sports Holdings, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

5.75% cash + 2.00% PIK

 

 

 

8.75

%

 

6/15/2024

 

$

1,569,444

 

 

1,550,003

 

 

1,467,116

 

 

 

0.09

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,719,356

 

 

1,627,350

 

 

 

0.10

%

 

 

Machinery

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sonny's Enterprises, LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

8/5/2026

 

$

3,791,553

 

 

3,715,824

 

 

3,715,722

 

 

 

0.23

%

 

K

Sonny's Enterprises, LLC

 

First Lien Delayed Draw Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

7.00

%

 

 

8.00

%

 

8/5/2026

 

$

-

 

 

 

(183,811

)

 

 

(184,161

)

 

 

(0.01

)%

 

K

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,532,013

 

 

3,531,561

 

 

 

0.22

%

 

 

Media

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Khoros, LLC (Lithium)

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

10/3/2022

 

$

509,379

 

 

496,840

 

 

474,231

 

 

 

0.03

%

 

N

Khoros, LLC (Lithium)

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

10/3/2022

 

$

151,743

 

 

147,099

 

 

141,272

 

 

 

0.01

%

 

N

Khoros, LLC (Lithium)

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

10/3/2022

 

$

7,131,905

 

 

7,054,572

 

 

6,967,871

 

 

 

0.42

%

 

N

Khoros, LLC (Lithium)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

10/3/2022

 

$

20,884,731

 

 

20,704,358

 

 

20,404,382

 

 

 

1.24

%

 

N

NEP II, Inc.

 

Second Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

7.00

%

 

 

7.15

%

 

10/19/2026

 

$

27,000,000

 

 

26,418,396

 

 

23,409,000

 

 

 

1.42

%

 

G

Quora, Inc.

 

First Lien Term Loan (4.0% Exit Fee)

 

Fixed

 

 

 

 

 

10.10

%

 

 

10.10

%

 

5/1/2022

 

$

12,692,602

 

 

12,582,602

 

 

12,768,758

 

 

 

0.77

%

 

L/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

67,403,867

 

 

64,165,514

 

 

 

3.89

%

 

 

Metal and Mining

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Neenah Foundry Company

 

First Lien Term Loan B

 

LIBOR(Q)

 

 

1.00

%

 

 

9.00

%

 

 

10.00

%

 

12/13/2022

 

$

6,151,857

 

 

5,905,998

 

 

5,382,875

 

 

 

0.33

%

 

N

 

17


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020

 

 

 

Issuer

 

Instrument

 

Ref

 

Floor

 

 

Spread

 

 

Total Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Debt Investments (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, Gas and Consumable Fuels

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Iracore International, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

9.00

%

 

 

10.00

%

 

4/13/2021

 

$

1,324,140

 

 

$

1,324,140

 

 

$

1,324,140

 

 

 

0.08

%

 

B/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Olaplex, Inc.

 

Sr Secured Revolver

 

LIBOR(M)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

1/8/2025

 

$

-

 

 

 

(22,078

)

 

 

(13,400

)

 

 

 

 

K/N

Olaplex, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

1/8/2026

 

$

13,403,873

 

 

13,168,640

 

 

13,269,835

 

 

 

0.80

%

 

N

Olaplex, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

1/8/2026

 

$

5,170,752

 

 

5,119,044

 

 

5,119,044

 

 

 

0.31

%

 

N

Paula's Choice Holdings, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

6.25

%

 

 

7.25

%

 

11/17/2025

 

$

20,000,000

 

 

19,452,319

 

 

19,500,000

 

 

 

1.18

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,717,925

 

 

37,875,479

 

 

 

2.30

%

 

 

Professional Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Applause App Quality, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

5.00

%

 

 

6.00

%

 

9/20/2022

 

$

20,772,306

 

 

20,610,750

 

 

20,772,306

 

 

 

1.26

%

 

N

Applause App Quality, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

5.00

%

 

 

6.00

%

 

9/20/2022

 

$

-

 

 

 

(10,443

)

 

 

 

 

 

 

 

K/N

CIBT Solutions, Inc.

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.75

%

 

 

 

 

6/1/2025

 

$

8,011,188

 

 

7,956,586

 

 

4,099,044

 

 

 

0.25

%

 

C/G/N

Dude Solutions Holdings, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

7.50

%

 

 

8.50

%

 

6/13/2025

 

$

-

 

 

 

(37,510

)

 

 

 

 

 

 

 

K/N

Dude Solutions Holdings, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.50

%

 

 

8.50

%

 

6/13/2025

 

$

16,884,883

 

 

16,579,885

 

 

17,222,581

 

 

 

1.04

%

 

N

Dude Solutions Holdings, Inc.

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.50

%

 

 

8.50

%

 

6/13/2025

 

$

2,227,508

 

 

2,183,489

 

 

2,272,058

 

 

 

0.14

%

 

N

Dude Solutions Holdings, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

7.50

%

 

 

8.50

%

 

6/13/2025

 

$

3,627,272

 

 

3,510,848

 

 

3,714,327

 

 

 

0.23

%

 

N

iCIMS, Inc.

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

9/12/2024

 

$

121,678

 

 

120,176

 

 

119,975

 

 

 

0.01

%

 

K/N

iCIMS, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

9/12/2024

 

$

2,351,073

 

 

2,315,704

 

 

2,318,158

 

 

 

0.14

%

 

N

iCIMS, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

9/12/2024

 

$

353,250

 

 

346,429

 

 

348,305

 

 

 

0.02

%

 

N

Institutional Shareholder Services, Inc.

 

Second Lien Term Loan

 

LIBOR(Q)

 

 

 

 

 

8.50

%

 

 

8.72

%

 

3/5/2027

 

$

5,820,856

 

 

5,672,120

 

 

5,791,752

 

 

 

0.35

%

 

N

RigUp, Inc.

 

First Delayed Draw Term Loan (3.5% Exit Fee)

 

LIBOR(M)

 

1.50%

 

 

 

7.00

%

 

 

8.50

%

 

3/1/2024

 

$

19,333,333

 

 

18,855,629

 

 

18,811,333

 

 

 

1.14

%

 

L/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78,103,663

 

 

75,469,839

 

 

 

4.58

%

 

 

Real Estate Management and Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Space Midco, Inc. (Archibus)

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

6.25

%

 

 

6.44

%

 

12/5/2023

 

$

4,444,444

 

 

4,387,820

 

 

4,355,556

 

 

 

0.26

%

 

N

Space Midco, Inc. (Archibus)

 

Sr Secured Revolver

 

LIBOR(M)

 

 

 

 

 

6.25

%

 

 

6.44

%

 

12/5/2023

 

$

-

 

 

 

(3,393

)

 

 

(5,556

)

 

 

 

 

K/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,384,427

 

 

4,350,000

 

 

 

0.26

%

 

 

Road and Rail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GlobalTranz Enterprises LLC

 

Second Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

8.25

%

 

 

8.40

%

 

5/15/2027

 

$

19,382,324

 

 

19,045,353

 

 

16,610,652

 

 

 

1.01

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certify, Inc.

 

First Lien Delayed Draw Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

5.75

%

 

 

6.75

%

 

2/28/2024

 

$

3,188,631

 

 

3,150,214

 

 

3,161,527

 

 

 

0.19

%

 

N

Certify, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

5.75

%

 

 

6.75

%

 

2/28/2024

 

$

23,383,293

 

 

23,314,597

 

 

23,184,535

 

 

 

1.41

%

 

N

Certify, Inc.

 

Sr Secured Revolver

 

LIBOR(M)

 

 

1.00

%

 

 

5.75

%

 

 

6.75

%

 

2/28/2024

 

$

265,719

 

 

250,220

 

 

256,685

 

 

 

0.02

%

 

K/N

Rhode Holdings, Inc. (Kaseya)

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

4% Cash+3% PIK

 

 

 

8.00

%

 

5/2/2025

 

$

1,732,500

 

 

1,707,152

 

 

1,744,628

 

 

 

0.11

%

 

N

Rhode Holdings, Inc. (Kaseya)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

4% Cash+3% PIK

 

 

 

8.00

%

 

5/2/2025

 

$

14,616,458

 

 

14,394,168

 

 

14,719,558

 

 

 

0.89

%

 

N

Rhode Holdings, Inc. (Kaseya)

 

Sr Secured Revolver

 

LIBOR(Q)

 

 

1.00

%

 

 

6.50

%

 

 

7.50

%

 

5/2/2025

 

$

590,882

 

 

572,713

 

 

590,882

 

 

 

0.04

%

 

N

Rhode Holdings, Inc. (Kaseya)

 

First Lien Incremental Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

4% Cash+3% PIK

 

 

 

8.00

%

 

5/2/2025

 

$

-

 

 

 

(12,010

)

 

5,710

 

 

 

 

 

K/N

Rhode Holdings, Inc. (Kaseya)

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

4% Cash+3% PIK

 

 

 

8.00

%

 

5/2/2025

 

$

1,281,602

 

 

1,262,824

 

 

1,290,573

 

 

 

0.08

%

 

N

Rhode Holdings, Inc. (Kaseya)

 

First Lien Delayed Draw Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

4% Cash+3% PIK

 

 

 

8.00

%

 

5/2/2025

 

$

-

 

 

 

(8,557

)

 

4,905

 

 

 

 

 

K/N

Rhode Holdings, Inc. (Kaseya)

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

4% Cash+3% PIK

 

 

 

8.00

%

 

5/2/2025

 

$

385,419

 

 

377,820

 

 

388,117

 

 

 

0.02

%

 

N

Snow Software AB

 

First Lien Term Loan

 

LIBOR(Q)

 

2.00%

 

 

 

6.00

%

 

 

8.00

%

 

4/17/2024

 

$

10,373,317

 

 

10,223,498

 

 

10,552,775

 

 

 

0.64

%

 

N

Snow Software AB

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

2.00%

 

 

 

6.00

%

 

 

8.00

%

 

4/17/2024

 

$

11,543,865

 

 

11,360,297

 

 

11,743,574

 

 

 

0.71

%

 

N

Snow Software AB

 

Sr Secured Revolver

 

LIBOR(Q)

 

2.00%

 

 

 

6.00

%

 

 

8.00

%

 

4/17/2024

 

$

1,308,164

 

 

1,248,629

 

 

1,308,164

 

 

 

0.08

%

 

N

Snow Software AB

 

First Lien Term Loan

 

LIBOR(Q)

 

2.00%

 

 

 

6.00

%

 

 

8.00

%

 

4/21/2021

 

$

4,477,328

 

 

4,435,255

 

 

4,554,786

 

 

 

0.28

%

 

N

Superman Holdings, LLC

 

Sr Secured Revolver

 

PRIME

 

 

 

 

 

7.00

%

 

 

10.25

%

 

8/31/2026

 

$

-

 

 

 

(29,663

)

 

 

 

 

 

 

 

K/N

 

18


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020

 

 

 

Issuer

 

Instrument

 

Ref

 

Floor

 

 

Spread

 

 

Total Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Debt Investments (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Superman Holdings, LLC

 

Sr Secured Revolver

 

PRIME

 

 

 

 

 

7.00

%

 

 

10.25

%

 

8/31/2027

 

$

8,820,316

 

 

$

8,608,974

 

 

$

8,855,597

 

 

 

0.54

%

 

N

Syntellis Performance Solutions, Inc

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

8.00

%

 

 

9.00

%

 

8/2/2027

 

$

21,402,299

 

 

20,783,432

 

 

21,509,310

 

 

 

1.30

%

 

N

Winshuttle, LLC

 

First Lien FILO Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

8.42

%

 

 

9.42

%

 

8/9/2024

 

$

13,867,521

 

 

13,575,211

 

 

14,075,534

 

 

 

0.85

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

115,214,774

 

 

117,946,860

 

 

 

7.16

%

 

 

Specialty Retail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calceus Acquisition, Inc. (Cole Haan)

 

First Lien Term Loan B

 

LIBOR(Q)

 

 

 

 

 

5.50

%

 

 

5.73

%

 

2/12/2025

 

$

590,021

 

 

560,513

 

 

566,420

 

 

 

0.03

%

 

N

Calceus Acquisition, Inc. (Cole Haan)

 

Sr Secured Notes

 

Fixed

 

 

 

 

 

9.75

%

 

 

9.75

%

 

2/19/2025

 

$

20,000,000

 

 

19,455,896

 

 

21,970,000

 

 

 

1.33

%

 

N

USR Parent, Inc. (Staples)

 

First Lien FILO Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

8.84

%

 

 

9.84

%

 

9/12/2022

 

$

4,588,974

 

 

4,542,337

 

 

4,634,863

 

 

 

0.28

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,558,746

 

 

27,171,283

 

 

 

1.64

%

 

 

Textiles, Apparel and Luxury Goods

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kenneth Cole Productions, Inc.

 

First Lien FILO Term Loan

 

LIBOR(M)

 

 

1.00

%

 

 

7.75

%

 

 

8.75

%

 

12/28/2023

 

$

17,941,278

 

 

17,855,159

 

 

17,941,278

 

 

 

1.09

%

 

N

PSEB, LLC (Eddie Bauer)

 

First Lien FILO II Term Loan

 

PRIME

 

 

 

 

 

7.25

%

 

 

10.50

%

 

10/12/2023

 

$

10,793,402

 

 

10,603,924

 

 

10,793,402

 

 

 

0.65

%

 

N

PSEB, LLC (Eddie Bauer)

 

First Lien Term Loan

 

LIBOR(Q)

 

1.50%

 

 

 

8.00

%

 

 

9.50

%

 

10/12/2023

 

$

37,237,236

 

 

36,598,542

 

 

37,795,794

 

 

 

2.30

%

 

N

WH Buyer, LLC (Anne Klein)

 

First Lien Term Loan

 

LIBOR(Q)

 

1.50%

 

 

 

7.76

%

 

 

9.26

%

 

7/16/2025

 

$

27,664,640

 

 

27,429,571

 

 

27,498,652

 

 

 

1.68

%

 

N

WH Buyer, LLC (Anne Klein)

 

First Lien Incremental Term Loan

 

LIBOR(Q)

 

1.50%

 

 

 

7.76

%

 

 

9.26

%

 

7/16/2025

 

$

5,307,692

 

 

5,260,224

 

 

5,275,846

 

 

 

0.32

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

97,747,420

 

 

99,304,972

 

 

 

6.04

%

 

 

Thrifts and Mortgage Finance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greystone Select Holdings, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

1.00%

 

 

 

8.00

%

 

 

9.00

%

 

4/17/2024

 

$

24,579,526

 

 

24,469,428

 

 

24,825,321

 

 

 

1.51

%

 

N

Home Partners of America, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

1.00%

 

 

 

6.25

%

 

 

7.25

%

 

10/13/2022

 

$

2,857,143

 

 

2,836,813

 

 

2,857,143

 

 

 

0.17

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,306,241

 

 

27,682,464

 

 

 

1.68

%

 

 

Tobacco Related

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Juul Labs, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

1.50%

 

 

 

8.00

%

 

 

9.50

%

 

8/2/2023

 

$

26,452,995

 

 

26,264,571

 

 

26,400,089

 

 

 

1.60

%

 

N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt Investments - 188.9% of Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,488,638,125

 

 

1,444,803,932

 

 

 

87.59

%

 

 

 

19


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020

 

 

 

Issuer

 

Instrument

 

 

 

 

 

 

 

 

 

Expiration

 

Shares

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Airlines

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Epic Aero, Inc (One Sky)

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

1,842

 

 

$

855,313

 

 

$

11,346,069

 

 

 

0.69

%

 

D/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Automobiles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AutoAlert Acquisition Co, LLC

 

Warrants to Purchase LLC Interest

 

 

 

 

 

 

 

 

 

6/28/2030

 

 

7

 

 

 

2,910,423

 

 

 

2,818,737

 

 

 

0.17

%

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Markets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pico Quantitative Trading, LLC

 

Warrants to Purchase Membership Units (144A)

 

 

 

 

 

 

 

 

 

2/7/2030

 

 

287

 

 

 

645,121

 

 

 

697,010

 

 

 

0.04

%

 

D/E/N

Chemicals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AGY Holding Corp.

 

Series A Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

1,786,785

 

 

 

485,322

 

 

 

663,166

 

 

 

0.04

%

 

D/N

AGY Holding Corp.

 

Series B Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

1,250,749

 

 

 

 

 

 

 

 

 

 

 

D/N

AGY Holding Corp.

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

982,732

 

 

 

 

 

 

 

 

 

 

 

D/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

485,322

 

 

 

663,166

 

 

 

0.04

%

 

 

Communications Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avanti Communications Group, PLC (United Kingdom)

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

26,576,710

 

 

 

4,902,674

 

 

 

 

 

 

 

 

D/E/H/N/O

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diversified Consumer Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TVG-Edmentum Holdings, LLC

 

Series A Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

27,603,779

 

 

 

27,603,779

 

 

 

27,758,980

 

 

 

1.68

%

 

B/E

TVG-Edmentum Holdings, LLC

 

Series B-1 Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

13,421,162

 

 

 

13,421,162

 

 

13,511,732

 

 

 

0.82

%

 

B/E

TVG-Edmentum Holdings, LLC

 

Series B-2 Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

13,421,162

 

 

 

13,421,162

 

 

 

12,868,247

 

 

 

0.78

%

 

B/D/E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54,446,103

 

 

 

54,138,959

 

 

 

3.28

%

 

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

36th Street Capital Partners Holdings, LLC

 

Membership Units

 

 

 

 

 

 

 

 

 

 

 

 

22,199,416

 

 

 

22,199,416

 

 

 

33,135,000

 

 

 

2.01

%

 

E/F/N

Conventional Lending TCP Holdings, LLC

 

Membership Units

 

 

 

 

 

 

 

 

 

 

 

 

19,000,869

 

 

 

19,000,869

 

 

 

18,050,826

 

 

 

1.09

%

 

E/F/I/N

GACP I, LP (Great American Capital)

 

Membership Units

 

 

 

 

 

 

 

 

 

 

 

 

1,392,896

 

 

 

1,392,896

 

 

 

1,995,210

 

 

 

0.12

%

 

E/I/N

GACP II, LP (Great American Capital)

 

Membership Units

 

 

 

 

 

 

 

 

 

 

 

 

15,980,492

 

 

 

15,980,492

 

 

 

17,341,570

 

 

 

1.05

%

 

E/I/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58,573,673

 

 

 

70,522,606

 

 

 

4.27

%

 

 

Electric Utilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conergy Asia Holdings Limited (United Kingdom)

 

Class B Shares

 

 

 

 

 

 

 

 

 

 

 

 

1,000,000

 

 

 

1,000,000

 

 

 

 

 

 

 

 

D/E/F/H/N

Conergy Asia Holdings Limited (United Kingdom)

 

Ordinary Shares

 

 

 

 

 

 

 

 

 

 

 

 

3,333

 

 

 

7,833,333

 

 

 

 

 

 

 

 

D/E/F/H/N

Kawa Solar Holdings Limited (Conergy) (Cayman Islands)

 

Ordinary Shares

 

 

 

 

 

 

 

 

 

 

 

 

2,332,594

 

 

 

 

 

 

 

 

 

 

 

D/E/F/H/N

Kawa Solar Holdings Limited (Conergy) (Cayman Islands)

 

Series B Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

93,023

 

 

 

1,395,349

 

 

 

 

 

 

 

 

D/E/F/H/N

Utilidata, Inc.

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

29,094

 

 

 

216,336

 

 

 

 

 

 

 

 

D/E

Utilidata, Inc.

 

Series C Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

257,369

 

 

 

153,398

 

 

 

229,000

 

 

 

0.01

%

 

D/E

Utilidata, Inc.

 

Series CC Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

500,000

 

 

 

500,000

 

 

 

23,000

 

 

 

 

 

D/E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,098,416

 

 

 

252,000

 

 

 

0.01

%

 

 

Electrical Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TCFI Amteck Holdings, LLC

 

Series A Preferred Units

 

 

 

 

 

 

 

 

 

 

 

 

8,020,824

 

 

 

7,511,391

 

 

 

8,117,074

 

 

 

0.50

%

 

N

TCFI Amteck Holdings, LLC

 

Common Units

 

 

 

 

 

 

 

 

 

 

 

 

362,513

 

 

 

395,336

 

 

 

8,845,317

 

 

 

0.55

%

 

D/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,906,727

 

 

 

16,962,391

 

 

 

1.05

%

 

 

Electronic Equipment, Instruments and Components

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Soraa, Inc.

 

Warrants to Purchase Preferred Stock

 

 

 

 

 

 

 

 

 

8/29/2024

 

 

3,071,860

 

 

 

478,899

 

 

 

 

 

 

 

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Equipment and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GlassPoint Solar, Inc.

 

Warrants to Purchase Series E Preferred Stock

 

 

 

 

 

 

 

 

 

2/7/2027

 

 

400,000

 

 

 

248,555

 

 

 

 

 

 

 

 

D/E/N

GlassPoint Solar, Inc.

 

Warrants to Purchase Series E Preferred Stock

 

 

 

 

 

 

 

 

 

2/7/2027

 

 

2,048,000

 

 

505,450

 

 

 

 

 

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

754,005

 

 

 

 

 

 

 

 

20


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020

 

 

 

Issuer

 

Instrument

 

 

 

 

 

 

 

 

 

Expiration

 

Shares

 

 

Cost

 

 

Fair

Value

 

 

% of Total

Cash and

Investments

 

 

Notes

Equity Securities (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Internet Software and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domo, Inc.

 

Warrants to Purchase Class B Common Stock

 

 

 

 

 

 

 

 

 

8/7/2023

 

 

49,792

 

 

$

1,543,054

 

 

$

3,175,236

 

 

 

0.19

%

 

D/E

FinancialForce.com, Inc.

 

Warrants to Purchase Series C Preferred Stock

 

 

 

 

 

 

 

 

 

1/30/2029

 

840,000

 

 

287,985

 

 

385,600

 

 

 

0.02

%

 

D/E/N

Foursquare Labs, Inc.

 

Warrants to Purchase Series E Preferred Stock

 

 

 

 

 

 

 

 

 

5/4/2027

 

 

2,062,500

 

 

508,805

 

 

1,144,786

 

 

 

0.07

%

 

D/E/N

InMobi, Inc. (Singapore)

 

Warrants to Purchase Common Stock

 

 

 

 

 

 

 

 

 

8/15/2027

 

 

1,327,869

 

 

212,360

 

 

422,705

 

 

 

0.03

%

 

D/E/H/N

InMobi, Inc. (Singapore)

 

Warrants to Purchase Series E Preferred  Stock (Strike Price $20.01)

 

 

 

 

 

 

 

 

 

9/18/2025

 

 

1,049,996

 

 

276,492

 

 

514,918

 

 

 

0.03

%

 

D/E/H/N

InMobi, Inc. (Singapore)

 

Warrants to Purchase Series E Preferred Stock (Strike Price $28.58)

 

 

 

 

 

 

 

 

 

10/3/2028

 

 

1,511,002

 

 

93,407

 

 

541,900

 

 

 

0.03

%

 

D/E/H/N

ResearchGate Corporation (Germany)

 

Warrants to Purchase Series D Preferred Stock

 

 

 

 

 

 

 

 

 

10/30/2029

 

 

333,370

 

 

202,001

 

 

110,000

 

 

 

0.01

%

 

D/E/H/N/O

Snaplogic, Inc.

 

Warrants to Purchase Series Preferred Stock

 

 

 

 

 

 

 

 

 

3/19/2028

 

 

1,860,000

 

 

377,722

 

 

5,200,000

 

 

 

0.32

%

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,501,826

 

 

11,495,145

 

 

 

0.70

%

 

 

IT Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fidelis (SVC), LLC

 

Preferred Units

 

 

 

 

 

 

 

 

 

 

 

 

657,932

 

 

 

2,001,384

 

 

 

75,613

 

 

 

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life Sciences Tools and Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Envigo RMS Holdings Corp.

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

36,413

 

 

 

 

235,228

 

 

 

0.01

%

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Media

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NEG Parent, LLC (Core Entertainment, Inc.)

 

Class A Units

 

 

 

 

 

 

 

 

 

 

 

 

2,720,392

 

 

2,772,807

 

 

7,401,888

 

 

 

0.45

%

 

B/D/E/N

NEG Parent, LLC (Core Entertainment, Inc.)

 

Class A Warrants to Purchase Class A Units

 

 

 

 

 

 

 

 

 

10/17/2026

 

 

343,387

 

 

196,086

 

 

438,161

 

 

 

0.03

%

 

B/D/E/N

NEG Parent, LLC (Core Entertainment, Inc.)

 

Class B Warrants to Purchase Class A Units

 

 

 

 

 

 

 

 

 

10/17/2026

 

 

346,794

 

 

198,032

 

 

442,508

 

 

 

0.03

%

 

B/D/E/N

Quora, Inc.

 

Warrants to Purchase Series D Preferred Stock

 

 

 

 

 

 

 

 

 

4/11/2029

 

507,704

 

 

65,245

 

 

105,095

 

 

 

0.01

%

 

D/E/N

SoundCloud, Ltd. (United Kingdom)

 

Warrants to Purchase Preferred Stock

 

 

 

 

 

 

 

 

 

4/29/2025

 

946,498

 

 

79,082

 

 

45,143

 

 

 

 

D/E/H/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,311,252

 

 

8,432,795

 

 

 

0.52

%

 

 

Oil, Gas and Consumable Fuels

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Iracore Investments Holdings, Inc.

 

Class A Common Stock

 

 

 

 

 

 

 

 

 

 

 

16,207

 

 

4,177,707

 

 

5,181,526

 

 

 

0.31

%

 

B/D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anacomp, Inc.

 

Class A Common Stock

 

 

 

 

 

 

 

 

 

 

 

1,255,527

 

 

26,711,048

 

 

401,769

 

 

 

0.02

%

 

D/E/F/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Semiconductors and Semiconductor Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nanosys, Inc.

 

Warrants to Purchase Preferred Stock

 

 

 

 

 

 

 

 

 

3/29/2023

 

800,000

 

 

605,266

 

 

962,482

 

 

 

0.06

%

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actifio, Inc.

 

Warrants to Purchase Series G Preferred Stock

 

 

 

 

 

 

 

 

 

5/5/2027

 

1,052,651

 

 

188,770

 

 

71,292

 

 

 

 

D/E/N

Tradeshift, Inc.

 

Warrants to Purchase Series D Preferred Stock

 

 

 

 

 

 

 

 

 

3/26/2027

 

1,712,930

 

 

577,843

 

 

503,762

 

 

 

0.03

%

 

D/E/N

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

766,613

 

 

575,054

 

 

 

0.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Equity Securities - 24.2% of Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

184,131,772

 

 

184,760,550

 

 

 

11.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments - 213.0% of Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,672,769,897

 

 

$

1,629,564,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents - 2.6% of Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,006,580

 

 

 

1.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Cash and Investments  - 215.6% of Net Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,649,571,062

 

 

 

100.00

%

 

M

 

21


BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2020

 

 

 

Notes to Consolidated Schedule of Investments:

 

(A)

Debt investments include investments in bank debt that generally are bought and sold among institutional investors in transactions not subject to registration under the Securities Act of 1933. Such transactions are generally subject to contractual restrictions, such as approval of the agent or borrower.

(B)

Non-controlled affiliate – as defined under the Investment Company Act of 1940 (ownership of between 5% and 25% of the outstanding voting  securities of this issuer). See Consolidated Schedule of Changes in Investments in Affiliates.

(C)

Non-accruing debt investment

(D)

Other non-income producing investment.          

(E)

Restricted security. (See Note 2)                  

(F)

Controlled issuer – as defined under the Investment Company Act of 1940 (ownership of 25% or more of the outstanding voting securities of this issuer). Investment is not more than 50% of the outstanding voting securities of the issuer nor deemed to be a significant subsidiary.  See Consolidated Schedule of Changes in Investments in Affiliates.

(G)

Investment has been segregated to collateralize certain unfunded commitments.

(H)

Non-U.S. company or principal place of business outside the U.S. and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(I)

Deemed an investment company under Section 3(c) of the Investment Company Act and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act.  Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(J)

Publicly traded company with a market capitalization greater than $250 million and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

(K)

Negative balances relate to an unfunded commitment that was acquired and/or valued at a discount.

(L)

In addition to the stated coupon, investment has an exit fee payable upon repayment of the loan in an amount equal to the percentage of the original principal amount shown.

(M)

All cash and investments, except those referenced in Notes G above, are pledged as collateral under certain debt as described in Note 4 to the Consolidated Financial Statements.

(N)

Inputs in the valuation of this investment included certain unobservable inputs that were significant to the valuation as a whole.

(O)

Investment denominated in foreign currency. Amortized cost and fair value converted from foreign currency to US dollars. Foreign currency denominated investments are generally hedged for currency exposure.

 

LIBOR or EURIBOR resets monthly (M), quarterly (Q), semiannually (S), or annually (A).

 

Aggregate acquisitions and aggregate dispositions of investments, other than government securities, totaled $460,153,100 and $480,719,625, respectively, for the year ended December 31, 2020. Aggregate acquisitions includes investment assets received as payment in kind. Aggregate dispositions includes principal paydowns on and maturities of debt investments. The total value of restricted securities and bank debt as of December 31, 2020 was $1,548,430,022 or 93.9% of total cash and investments of the Company.  As of December 31, 2020, approximately 7.7% of the total assets of the Company were not qualifying assets under Section 55(a) of the 1940 Act.

See accompanying notes to the consolidated financial statements.

 

 

22


 

 

BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited)

September 30, 2021

 

1. Organization and Nature of Operations

BlackRock TCP Capital Corp. (the “Company”), formerly known as TCP Capital Corp., is a Delaware corporation formed on April 2, 2012 as an externally managed, closed-end, non-diversified management investment company. The Company elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company’s investment objective is to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. The Company invests primarily in the debt of middle-market companies as well as small businesses, including senior secured loans, junior loans, mezzanine debt and bonds. Such investments may include an equity component, and, to a lesser extent, the Company may make equity investments directly. The Company was formed through the conversion on April 2, 2012 of the Company’s predecessor, Special Value Continuation Fund, LLC, from a limited liability company to a corporation in a non-taxable transaction, leaving the Company as the surviving entity. On April 3, 2012, the Company completed its initial public offering.

Investment operations are conducted through the Company's wholly-owned subsidiaries, Special Value Continuation Partners LLC, a Delaware limited liability company ("SVCP"), TCPC Funding I, LLC, a Delaware limited liability company (“TCPC Funding”), TCPC Funding II, LLC, a Delaware limited liability company ("TCPC Funding II") and TCPC SBIC, LP, a Delaware limited partnership (the “SBIC”). SVCP was organized as a limited partnership and had elected to be regulated as a BDC under the 1940 Act through July 31, 2018. On August 1, 2018, SVCP withdrew its election to be regulated as a BDC under the 1940 Act and withdrew the registration of its common limited partner interests under Section 12(g) of the Securities Exchange Act of 1934 and, on August 2, 2018, terminated its general partner, Series H of SVOF/MM, LLC, and converted to a Delaware limited liability company. The SBIC was organized in June 2013, and, on April 22, 2014, received a license from the United States Small Business Administration (the “SBA”) to operate as a small business investment company under the provisions of Section 301(c) of the Small Business Investment Act of 1958. These consolidated financial statements include the accounts of the Company, SVCP, TCPC Funding, TCPC Funding II and the SBIC. All significant intercompany transactions and balances have been eliminated in the consolidation.

The Company has elected to be treated as a regulated investment company (“RIC”) for U.S. federal income tax purposes. As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements. TCPC Funding, TCPC Funding II and the SBIC have elected to be treated as partnerships for U.S. federal income tax purposes. SVCP was treated as a partnership for U.S. federal income tax purposes through August 1, 2018 and upon its conversion to a limited liability company on August 2, 2018 and thereafter is and will be treated as a disregarded entity.

Series H of SVOF/MM, LLC serves as the administrator of the Company (the “Administrator”). The managing member of SVOF/MM is Tennenbaum Capital Partners, LLC (the “Advisor”), which serves as the investment manager to the Company, TCPC Funding, TCPC Funding II and the SBIC. On August 1, 2018, the Advisor merged with and into a wholly owned subsidiary of BlackRock Capital Investment Advisors, LLC, an indirect wholly owned subsidiary of BlackRock, Inc., with the Advisor as the surviving entity.

Company management consists of the Advisor and the Company’s board of directors. The Advisor directs and executes the day-to-day operations of the Company, subject to oversight from the board of directors, which sets the broad policies of the Company. The board of directors of the Company has delegated investment management of SVCP’s assets to the Advisor. The board of directors consists of seven persons, five of whom are independent.

23


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

2. Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification (“ASC”) Topic 946, Financial Services – Investment Companies. The Company has consolidated the results of its wholly owned subsidiaries in its consolidated financial statements in accordance with ASC Topic 946. The following is a summary of the significant accounting policies of the Company.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well the reported amounts of revenues and expenses during the reporting periods presented. Although management believes these estimates and assumptions to be reasonable, actual results could differ from those estimates and such differences could be material.

Investment Valuation

The Company’s investments are generally held by SVCP, TCPC Funding I, TCPC Funding II or the SBIC. Management values investments at fair value in accordance with GAAP, based upon the principles and methods of valuation set forth in policies adopted by the board of directors. Fair value is generally defined as the amount for which an investment would be sold in an orderly transaction between market participants at the measurement date.

All investments are valued at least quarterly based on quotations or other affirmative pricing from independent third-party sources, with the exception of investments priced directly by the Advisor which in the aggregate comprise less than 5% of the capitalization of the Company. Investments listed on a recognized exchange or market quotation system, whether U.S. or foreign, are valued using the closing price on the date of valuation.

Investments not listed on a recognized exchange or market quotation system, but for which reliable market quotations are readily available are valued using prices provided by a nationally recognized pricing service or by using quotations from broker-dealers.

Investments for which market quotations are either not readily available or are determined to be unreliable are priced at fair value using affirmative valuations performed by independent valuation services approved by the board of directors or, for investments aggregating less than 5% of the total capitalization of the Company, using valuations determined directly by the Advisor. Such valuations are determined under a documented valuation policy that has been reviewed and approved by the board of directors.

Generally, to increase objectivity in valuing the investments, the Advisor will utilize external measures of value, such as public markets or third-party transactions, whenever possible. The Advisor’s valuation is not based on long-term work-out value, immediate liquidation value, nor incremental value for potential changes that may take place in the future. The values assigned to investments are based on available information and do not necessarily represent amounts that might ultimately be realized, as these amounts depend on future circumstances and cannot reasonably be determined until the individual investments are actually liquidated. Such circumstances may include macroeconomic, geopolitical and other events and conditions such as the current COVID-19 pandemic that may significantly impact the profitability or viability of businesses in which the Company is invested, and therefore may significantly impact the return on and realizability of the Company’s investments. The foregoing policies apply to all investments, including any in companies and groups of affiliated companies aggregating more than 5% of the Company’s assets.

Fair valuations of investments in each asset class are determined using one or more methodologies including market quotations, the market approach, income approach, or, in the case of recent investments, the cost approach, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. Such information may include observed multiples of earnings and/or revenues at which transactions in securities of comparable companies occur, with appropriate adjustments for differences in company size, operations or other factors affecting comparability.

The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present value amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. The discount rates used for such analyses reflect market yields for comparable investments, considering such factors as relative credit quality, capital structure, and other factors.

24


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

2. Summary of Significant Accounting Policies(continued)

In following these approaches, the types of factors that may be taken into account also include, as relevant: available current market data, including relevant and applicable market trading and transaction comparables, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, merger and acquisition comparables, comparable costs of capital, the principal market in which the investment trades and enterprise values, among other factors.

Investments may be categorized based on the types of inputs used in valuing such investments. The level in the GAAP valuation hierarchy in which an investment falls is based on the lowest level input that is significant to the valuation of the investment in its entirety. Transfers between levels are recognized as of the beginning of the reporting period.

At September 30, 2021, the Company’s investments were categorized as follows:

 

Level

 

Basis for Determining Fair Value

 

Bank Debt (1)

 

 

Other

Corporate Debt (2)

 

 

Equity

Securities

 

 

Total

 

1

 

Quoted prices in active markets for identical

  assets

 

$

 

 

$

 

 

$

4,204,436

 

 

$

4,204,436

 

2

 

Other direct and indirect observable market inputs (3)

 

 

42,585,360

 

 

 

 

 

 

 

 

 

42,585,360

 

3

 

Independent third-party valuation sources that

  employ significant unobservable inputs

 

 

1,443,320,819

 

 

 

96,560,415

 

 

 

169,414,966

 

 

 

1,709,296,200

 

3

 

Advisor valuations with significant unobservable

   inputs

 

 

 

 

 

 

 

 

1,292,185

 

 

 

1,292,185

 

Total

 

 

 

$

1,485,906,179

 

 

$

96,560,415

 

 

$

174,911,587

 

 

$

1,757,378,181

 

 

 

(1)

Includes senior secured loans

 

(2)

Includes senior secured notes, unsecured debt and subordinated debt

 

(3)

For example, quoted prices in inactive markets or quotes for comparable investments

Unobservable inputs used in the fair value measurement of Level 3 investments as of September 30, 2021 included the following:

 

Asset Type

 

Fair Value

 

 

Valuation Technique

 

Unobservable Input

 

Range (Weighted Avg.) (1)

Bank Debt

 

$

1,302,894,195

 

 

Income approach

 

Discount rate

 

5.1% - 14.1% (9.0%)

 

 

 

89,610,439

 

 

Market quotations

 

Indicative bid/ask quotes

 

1 (1)

 

 

 

31,396,348

 

 

Market comparable companies

 

Revenue multiples

 

1.3x - 5.3x (3.2x)

 

 

 

13,393,741

 

 

Market comparable companies

 

EBITDA multiples

 

5.3x - 8.3x  (8.0x)

 

 

 

6,026,096

 

 

Option Pricing Model

 

EBITDA/Revenue multiples

 

4.3x (4.3x)

 

 

 

 

 

 

 

 

Implied volatility

 

60.0% (60.0%)

 

 

 

 

 

 

 

 

Term

 

3.5 years (3.5 years)

Other Corporate Debt

 

 

51,336,000

 

 

Income approach

 

Discount rate

 

9.3% - 10.8% (9.8%)

 

 

 

43,793,028

 

 

Market comparable companies

 

Book value multiples

 

1.3x (1.3x)

 

 

 

1,431,387

 

 

Market comparable companies

 

Revenue multiples

 

5.3x (5.3x)

Equity

 

 

19,171,030

 

 

Market quotations

 

Indicative bid/ask quotes

 

1 (1)

 

 

 

31,780,228

 

 

Option Pricing Model

 

EBITDA/Revenue multiples

 

1.7x - 8.0x (6.2x)

 

 

 

 

 

 

 

 

Implied volatility

 

35.0% - 70.0% (50.4%)

 

 

 

 

 

 

 

 

Term

 

0.8 years - 3.5 years (2.1 years)

 

 

 

448,749

 

 

Market comparable companies

 

Revenue multiples

 

0.7x - 4.4x (1.2x)

 

 

 

73,065,145

 

 

Market comparable companies

 

EBITDA multiples

 

5.3x - 14.0x (13.5x)

 

 

 

31,746,000

 

 

Market comparable companies

 

Book value multiples

 

1.3x (1.3x)

 

 

 

14,495,999

 

 

Other (2)

 

N/A

 

N/A

 

 

$

1,710,588,385

 

 

 

 

 

 

 

 

 

(1)

Weighted by fair value

 

(2)

Fair value was determined based on the most recently available net asset value of the issuer adjusted for identified changes in the valuations of the underlying portfolio of the issuer through the measurement date.

25


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

2. Summary of Significant Accounting Policies (continued)

Certain fair value measurements may employ more than one valuation technique, with each valuation technique receiving a relative weight between 0% and 100%. Generally, a change in an unobservable input may result in a change to the value of an investment as follows:

 

Input

 

Impact to Value if
Input Increases

 

Impact to Value if
Input Decreases

Discount rate

 

Decrease

 

Increase

Revenue multiples

 

Increase

 

Decrease

EBITDA multiples

 

Increase

 

Decrease

Book value multiples

 

Increase

 

Decrease

Implied volatility

 

Increase

 

Decrease

Term

 

Increase

 

Decrease

Yield

 

Increase

 

Decrease

 

 

Changes in investments categorized as Level 3 during the three months ended September 30, 2021 were as follows:

 

 

Independent Third-Party Valuation

 

 

Bank Debt

 

 

Other

Corporate Debt

 

 

Equity

Securities

 

 

Total

 

Beginning balance

$

1,485,823,942

 

 

$

95,309,751

 

 

$

212,285,228

 

 

$

1,793,418,921

 

Net realized and unrealized gains (losses)

 

(1,339,597

)

 

 

(1,736,362

)

 

 

(143,515

)

 

 

(3,219,474

)

Acquisitions (1)

 

153,669,630

 

 

 

2,976,157

 

 

 

3,833,233

 

 

 

160,479,020

 

Dispositions

 

(194,759,478

)

 

 

10,869

 

 

 

(47,063,742

)

 

 

(241,812,351

)

Transfers out of Level 3 (2)

 

(73,678

)

 

 

 

 

 

 

 

 

(73,678

)

Reclassifications within Level 3 (3)

 

 

 

 

 

 

 

503,762

 

 

 

503,762

 

Ending balance

$

1,443,320,819

 

 

$

96,560,415

 

 

$

169,414,966

 

 

$

1,709,296,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation/depreciation during

   the period on investments still held at period end (included

   in net realized and unrealized gains/losses, above)

$

(2,515,867

)

 

$

(1,736,363

)

 

$

997,294

 

 

$

(3,254,936

)

 

(1)

Includes payments received in kind and accretion of original issue and market discounts

(2)

Comprised of one investment that was transferred to Level 2 due to increased observable market activity

(3)

Comprised of one investment that was reclassified from Advisor Valuation

 

 

Advisor Valuation

 

 

Bank Debt

 

 

Other

Corporate Debt

 

 

Equity

Securities

 

 

Total

 

Beginning balance

$

 

 

$

 

 

$

1,797,389

 

 

$

1,797,389

 

Net realized and unrealized gains (losses)

 

 

 

 

 

 

 

(1,442

)

 

 

(1,442

)

Reclassifications within Level 3 (1)

 

 

 

 

 

 

 

(503,762

)

 

 

(503,762

)

Ending balance

$

 

 

$

 

 

$

1,292,185

 

 

$

1,292,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation/depreciation during

   the period on investments still held at period end (included

   in net realized and unrealized gains/losses, above)

$

 

 

$

 

 

$

(1,442

)

 

$

(1,442

)

 

 

(1)

Comprised of one investment that was reclassified to Independent Third-Party Valuation

 

 

26


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

 

2. Summary of Significant Accounting Policies — (continued)

 

Changes in investments categorized as Level 3 during the nine months ended September 30, 2021 were as follows:

 

 

 

Independent Third-Party Valuation

 

 

 

Bank Debt

 

 

Other

Corporate Debt

 

 

Equity

Securities

 

 

Total

 

Beginning balance

 

$

1,281,636,688

 

 

$

95,923,481

 

 

$

179,525,253

 

 

$

1,557,085,422

 

Net realized and unrealized gains (losses)

 

 

3,824,672

 

 

 

(2,400,838

)

 

 

41,953,536

 

 

 

43,377,370

 

Acquisitions (1)

 

 

564,170,330

 

 

 

3,005,517

 

 

 

7,590,758

 

 

 

574,766,605

 

Dispositions

 

 

(405,744,451

)

 

 

32,255

 

 

 

(60,158,343

)

 

 

(465,870,539

)

Transfers out of Level 3 (2)

 

 

(566,420

)

 

 

 

 

 

 

 

 

(566,420

)

Reclassifications within Level 3 (3)

 

 

 

 

 

 

 

 

503,762

 

 

 

503,762

 

Ending balance

 

$

1,443,320,819

 

 

$

96,560,415

 

 

$

169,414,966

 

 

$

1,709,296,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation/depreciation during

   the period on investments still held at period end (included

   in net realized and unrealized gains/losses, above)

 

$

5,289,163

 

 

$

(2,400,838

)

 

$

44,734,674

 

 

$

47,622,999

 

 

(1)

Includes payments received in kind and accretion of original issue and market discounts

(2)

Comprised of one investment that was transferred to Level 2 due to increased observable market activity

(3)

Comprised of one investment that was reclassified from Advisor Valuation

 

 

 

 

Advisor Valuation

 

 

 

Bank Debt

 

 

Other

Corporate Debt

 

 

Equity

Securities

 

 

Total

 

Beginning balance

 

$

 

 

$

 

 

$

2,060,061

 

 

$

2,060,061

 

Net realized and unrealized gains (losses)

 

 

 

 

 

 

 

 

(196,988

)

 

 

(196,988

)

Dispositions

 

 

 

 

 

 

 

 

(67,126

)

 

 

(67,126

)

Reclassifications within Level 3 (1)

 

 

 

 

 

 

 

 

(503,762

)

 

 

(503,762

)

Ending balance

 

$

 

 

$

 

 

$

1,292,185

 

 

$

1,292,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation/depreciation during

   the period on investments still held at period end (included

   in net realized and unrealized gains/losses, above)

 

$

 

 

$

 

 

$

(192,821

)

 

$

(192,821

)

 

(1)

Comprised of one investment that was reclassified to Independent Third-Party Valuation

27


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

2. Summary of Significant Accounting Policies — (continued)

At December 31, 2020, the Company’s investments were categorized as follows:

 

Level

 

Basis for Determining Fair Value

 

Bank Debt (1)

 

 

Other

Corporate Debt (2)

 

 

Equity

Securities

 

 

Total

 

1

 

Quoted prices in active markets for identical

   assets

 

$

 

 

$

 

 

$

3,175,236

 

 

$

3,175,236

 

2

 

Other direct and indirect observable market inputs (3)

 

 

67,243,763

 

 

 

 

 

 

 

 

 

67,243,763

 

3

 

Independent third-party valuation sources that

   employ significant unobservable inputs

 

 

1,281,636,688

 

 

 

95,923,481

 

 

 

179,525,253

 

 

 

1,557,085,422

 

3

 

Advisor valuations with significant unobservable

   inputs

 

 

 

 

 

 

 

 

2,060,061

 

 

 

2,060,061

 

Total

 

 

 

$

1,348,880,451

 

 

$

95,923,481

 

 

$

184,760,550

 

 

$

1,629,564,482

 

 

 

(1)

Includes senior secured loans

(2)

Includes senior secured notes, unsecured debt and subordinated debt

(3)

For example, quoted prices in inactive markets or quotes for comparable investments

 

Unobservable inputs used in the fair value measurement of Level 3 investments as of December 31, 2020 included the following:

 

Asset Type

 

Fair Value

 

 

Valuation Technique

 

Unobservable Input

 

Range (Weighted Avg.) (1)

Bank Debt

 

$

1,128,076,031

 

 

Income approach

 

Discount rate

 

5.2% - 18.0% (9.3%)

 

 

 

104,635,137

 

 

Market quotations

 

Indicative bid/ask quotes

 

1 (1)

 

 

 

32,822,501

 

 

Market comparable companies

 

Revenue multiples

 

1.4x - 4.5x (3.1x)

 

 

 

16,103,019

 

 

Market comparable companies

 

EBITDA multiples

 

6.0x - 6.9x (6.8x)

Other Corporate Debt

 

 

53,957,531

 

 

Income approach

 

Discount rate

 

7.1% - 18.0% (10.3%)

 

 

 

40,834,419

 

 

Market comparable companies

 

Book value multiples

 

1.5x (1.5x)

 

 

 

1,131,531

 

 

Market comparable companies

 

Revenue multiples

 

4.3x (4.3x)

Equity

 

 

8,117,073

 

 

Income approach

 

Discount rate

 

9.5% - 18.0% (9.5%)

 

 

 

72,336,690

 

 

Market quotations

 

Indicative bid/ask quotes

 

1 (1)

 

 

 

14,332,807

 

 

Option Pricing Model

 

EBITDA/Revenue multiples

 

6.4x (6.4x)

 

 

 

 

 

 

 

 

Implied volatility

 

35.0% - 70.0% (49.5%)

 

 

 

 

 

 

 

 

Term

 

1.5 years - 3.5 years (2.3 years)

 

 

 

1,316,936

 

 

Market comparable companies

 

Revenue multiples

 

0.7x - 4.3x (1.0x)

 

 

 

33,010,028

 

 

Market comparable companies

 

EBITDA multiples

 

6.0x - 9.8x (7.0x)

 

 

 

33,135,000

 

 

Market comparable companies

 

Book value multiples

 

1.5x (1.5x)

 

 

 

19,336,780

 

 

Other (2)

 

N/A

 

N/A

 

 

$

1,559,145,483

 

 

 

 

 

 

 

 

(1)

Weighted by fair value

(2)

Fair value was determined based on the most recently available net asset value of the issuer adjusted for identified changes in the valuations of the underlying portfolio of the issuer through the measurement date.

28


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

2. Summary of Significant Accounting Policies (continued)

Changes in investments categorized as Level 3 during the three months ended September 30, 2020 were as follows:

 

 

 

Independent Third-Party Valuation

 

 

 

Bank Debt

 

 

Other

Corporate Debt

 

 

Equity

Securities

 

 

Total

 

Beginning balance

 

$

1,363,063,199

 

 

$

98,073,190

 

 

$

106,916,536

 

 

$

1,568,052,925

 

Net realized and unrealized gains (losses)

 

 

13,046,136

 

 

 

(114,207

)

 

 

15,947,865

 

 

 

28,879,794

 

Acquisitions*

 

 

76,650,858

 

 

 

499,234

 

 

 

2,266,062

 

 

 

79,416,154

 

Dispositions

 

 

(85,866,496

)

 

 

 

 

 

(2,293,367

)

 

 

(88,159,863

)

Transfer out of Level 3

 

 

(55,055,457

)

 

 

 

 

 

 

 

 

(55,055,457

)

Reclassifications within Level 3  

 

 

 

 

 

 

 

 

(523,801

)

 

 

(523,801

)

Ending balance

 

$

1,311,838,240

 

 

$

98,458,217

 

 

$

122,313,295

 

 

$

1,532,609,752

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation/depreciation during

   the period on investments still held at period end

   (included in net realized and unrealized gains/losses,

   above)

 

$

20,092,206

 

 

$

4,067,814

 

 

$

15,357,002

 

 

$

39,517,022

 

 

* Includes payments received in kind and accretion of original issue and market discounts

Comprised of four investments that were transferred to Level 2 due to increased observable market activity

Comprised of one investment that was reclassified to Advisor Valuation

 

 

 

 

Advisor Valuation

 

 

 

Bank Debt

 

 

Other

Corporate Debt

 

 

Equity

Securities

 

 

Total

 

Beginning balance

 

$

 

 

$

 

 

$

2,254,668

 

 

$

2,254,668

 

Net realized and unrealized gains (losses)

 

 

 

 

 

 

 

 

(73,894

)

 

 

(73,894

)

Dispositions

 

 

 

 

 

 

 

 

(792,635

)

 

 

(792,635

)

Reclassifications within Level 3 *

 

 

 

 

 

 

 

 

523,801

 

 

 

523,801

 

Ending balance

 

$

 

 

$

 

 

$

1,911,940

 

 

$

1,911,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation/depreciation during the

   period on investments still held at period end (included in

   net realized and unrealized gains/losses, above)

 

$

 

 

$

 

 

$

(771,248

)

 

$

(771,248

)

_______________________________

*Comprised of one investment that was reclassified from Independent Third-Party Valuation

29


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

2. Summary of Significant Accounting Policies — (continued)

Changes in investments categorized as Level 3 during the nine months ended September 30, 2020 were as follows:

 

 

 

Independent Third-Party Valuation

 

 

 

Bank Debt

 

 

Other

Corporate Debt

 

 

Equity

Securities

 

 

Total

 

Beginning balance

 

$

1,312,492,099

 

 

$

85,962,603

 

 

$

111,994,829

 

 

$

1,510,449,531

 

Net realized and unrealized gains (losses)

 

 

(30,837,007

)

 

 

(7,403,855

)

 

 

6,134,133

 

 

 

(32,106,729

)

Acquisitions *

 

 

239,421,150

 

 

 

19,899,469

 

 

 

17,058,242

 

 

 

276,378,861

 

Dispositions

 

 

(237,972,665

)

 

 

 

 

 

(12,350,108

)

 

 

(250,322,773

)

Transfers into Level 3

 

 

83,790,120

 

 

 

 

 

 

 

 

 

83,790,120

 

Transfer out of Level 3

 

 

(55,055,457

)

 

 

 

 

 

 

 

 

(55,055,457

)

Reclassifications within Level 3 §

 

 

 

 

 

 

 

 

(523,801

)

 

 

(523,801

)

Ending balance

 

$

1,311,838,240

 

 

$

98,458,217

 

 

$

122,313,295

 

 

$

1,532,609,752

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation/depreciation during

   the period on investments still held at period end

   (included in net realized and unrealized gains/losses,

   above)

 

$

(22,167,391

)

 

$

(3,221,835

)

 

$

6,116,787

 

 

$

(19,272,439

)

 

* Includes payments received in kind and accretion of original issue and market discounts

Comprised of five investments that were transferred from Level 2 due to reduced trading volumes

Comprised of four investments that were transferred to Level 2 due to increased observable market activity

§Comprised of one investment that was reclassified to Advisor Valuation

 

 

 

 

Advisor Valuation

 

 

 

Bank Debt

 

 

Other

Corporate Debt

 

 

Equity

Securities

 

 

Total

 

Beginning balance

 

$

 

 

$

 

 

$

2,318,128

 

 

$

2,318,128

 

Net realized and unrealized gains (losses)

 

 

 

 

 

 

 

 

(13,414

)

 

 

(13,414

)

Dispositions

 

 

 

 

 

 

 

 

(916,575

)

 

 

(916,575

)

Reclassifications within Level 3 *

 

 

 

 

 

 

 

 

523,801

 

 

 

523,801

 

Ending balance

 

$

 

 

$

 

 

$

1,911,940

 

 

$

1,911,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation/depreciation during the

   period on investments still held at period end (included in

   net realized and unrealized gains/losses, above)

 

$

 

 

$

 

 

$

(710,771

)

 

$

(710,771

)

 

_____________________________

 

*

Comprised of one investment that was reclassified from Independent Third-Party Valuation

 

30


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

 

2. Summary of Significant Accounting Policies — (continued)

Investment Transactions

Investment transactions are recorded on the trade date, except for private transactions that have conditions to closing, which are recorded on the closing date. The cost of investments purchased is based upon the purchase price plus those professional fees which are specifically identifiable to the investment transaction. Realized gains and losses on investments are recorded based on the specific identification method, which typically allocates the highest cost inventory to the basis of investments sold.

Cash and Cash Equivalents

Cash consists of amounts held in accounts with the custodian bank. Cash equivalents consist of highly liquid investments with an original maturity of generally three months or less and may not be insured by the FDIC or may exceed federally insured limits. Cash equivalents are classified as Level 1 in the GAAP valuation hierarchy. There was no restricted cash at September 30, 2021 or December 31, 2020.

Restricted Investments

The Company may invest without limitation in instruments that are subject to legal or contractual restrictions on resale. These instruments generally may be resold to institutional investors in transactions exempt from registration or to the public if the securities are registered. Disposal of these investments may involve time-consuming negotiations and additional expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted investments is included at the end of the Consolidated Schedule of Investments. Restricted investments, including any restricted investments in affiliates, are valued in accordance with the investment valuation policies discussed above.

Foreign Currency Investments

The Company may invest in instruments traded in foreign countries and denominated in foreign currencies. Foreign currency denominated investments comprised approximately 0.5% and 0.6% of total investments at September 30, 2021 and December 31, 2020, respectively. Such positions were converted at the respective closing foreign exchange rates in effect at September 30, 2021 and December 31, 2020 and reported in U.S. dollars. Purchases and sales of investments and income and expense items denominated in foreign currencies, when they occur, are translated into U.S. dollars based on the foreign exchange rates in effect on the respective dates of such transactions. The portion of gains and losses on foreign investments resulting from fluctuations in foreign currencies is included in net realized and unrealized gain or loss from investments.

Investments in foreign companies and securities of foreign governments may involve special risks and considerations not typically associated with investing in U.S. companies and securities of the U.S. government. These risks include, among other things, revaluation of currencies, less reliable information about issuers, different transaction clearance and settlement practices, and potential future adverse political and economic developments. Moreover, investments in foreign companies and securities of foreign governments and their markets may be less liquid and their prices more volatile than those of comparable U.S. companies and the U.S. government.

 

 

31


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

 

2. Summary of Significant Accounting Policies — (continued)

Derivatives

In order to mitigate certain currency exchange and interest rate risks, the Company may enter into certain derivative transactions. All derivatives are subject to a master netting agreement and are reported at their gross amounts as either assets or liabilities in the Consolidated Statements of Assets and Liabilities. Transactions entered into are accounted for using the mark-to-market method with the resulting change in fair value recognized in earnings for the current period. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in interest rates and the value of foreign currencies relative to the U.S. dollar. Certain derivatives may also require the Company to pledge assets as collateral to secure its obligations.

During the nine months ended September 30, 2021 and 2020, the Company did not enter into any derivative transactions nor hold any derivative positions.

Valuations of derivatives are determined using observable market inputs other than quoted prices in active markets for identical assets and, accordingly, are generally classified as Level 2 in the GAAP valuation hierarchy.

Deferred Debt Issuance Costs

Certain costs incurred in connection with the issuance and/or extension of debt of the Company and its subsidiaries were capitalized and are being amortized on a straight-line basis over the estimated life of the respective instruments. The impact of utilizing the straight-line amortization method versus the effective-interest method is not material to the operations of the Company.

Revenue Recognition

Interest and dividend income, including income paid in kind, is recorded on an accrual basis, when such amounts are considered collectible. Origination, structuring, closing, commitment and other upfront fees, including original issue discounts, earned with respect to capital commitments are generally amortized or accreted into interest income over the life of the respective debt investment, as are end-of-term or exit fees receivable upon repayment of a debt investment. Other fees, including certain amendment fees, prepayment fees and commitment fees on broken deals, are recognized as earned. Prepayment fees and similar income due upon the early repayment of a loan or debt security are recognized when earned and are included in interest income.

Certain debt investments are purchased at a discount to par as a result of the underlying credit risks and financial results of the issuer, as well as general market factors that influence the financial markets as a whole. Discounts on the acquisition of corporate bonds are generally amortized using the effective-interest or constant-yield method assuming there are no questions as to collectability. When principal payments on a loan are received in an amount in excess of the loan’s amortized cost, the excess principal payments are recorded as interest income.

 

32


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

 

2. Summary of Significant Accounting Policies — (continued)

Income Taxes

 

The Company intends to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required. The income or loss of SVCP, TCPC Funding I, TCPC Funding II and the SBIC is reported in the respective members' or partners’ income tax returns, as applicable.

 

The tax returns of the Company, SVCP, TCPC Funding I, TCPC Funding II and the SBIC remain open for examination by tax authorities for a period of three years from the date they are filed. No such examinations are currently pending. Management has analyzed tax laws and regulations and their application to the Company as of September 30, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the consolidated financial statements.

 

The final tax characterization of distributions is determined after the fiscal year and is reported on Form 1099 and in the Company’s annual report to shareholders. Distributions can be characterized as ordinary income, capital gains and/or return of capital. As of December 31, 2020, the Company had non-expiring capital loss carryforwards in the amount of $171,300,137 available to offset future realized capital gains.

As of December 31, 2020, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

 

 

 

December 31, 2020

 

Tax basis of investments

 

$

1,671,848,321

 

 

 

 

 

 

Unrealized appreciation

 

$

76,459,937

 

Unrealized depreciation

 

 

(118,743,776

)

Net unrealized depreciation

 

$

(42,283,839

)

 

Recent Accounting Pronouncements

 

In May 2020, the SEC adopted rule amendments that will impact the requirements of investment companies, including BDCs, to disclose the financial statements of certain of their portfolio companies or certain acquired funds (the “Final Rules”). The Final Rules adopted a new definition of “significant subsidiary” set forth in Rule 1-02(w)(2) of Regulation S-X under the Securities Act. Rules 3-09 and 4-08(g) of Regulation S-X require investment companies to include separate financial statements or summary financial information, respectively, in such investment company’s periodic reports for any portfolio company that meets the definition of “significant subsidiary.” The Final Rules adopt a new definition of “significant subsidiary” applicable only to investment companies that (i) modifies the investment test and the income test, and (ii) eliminates the asset test currently in the definition of “significant subsidiary” in Rule 1-02(w) of Regulation S-X. The new Rule 1-02(w)(2) of Regulation S-X is intended to more accurately capture those portfolio companies that are more likely to materially impact the financial condition of an investment company. The Company adopted the Final Rules effective January 1, 2021 and the adoption did not have a material impact on its consolidated financial statements and related disclosures.

In March 2020 and January 2021, the FASB issued ASU No. 2020-04 and ASU No. 2021-01, respectively, “Reference Rate Reform (Topic 848),” which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective and can be adopted by all entities through December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company is currently evaluating the impact of adopting ASU 2020-04 on its consolidated financial statements.

 

33


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

 

3. Management Fees, Incentive Fees and Other Expenses

On February 8, 2019, the stockholders of the Company approved an amended investment management agreement to be effective on February 9, 2019 between the Company and the Advisor which (i) reduced the management fee on total assets (excluding cash and cash equivalents) that exceed an amount equal to 200% of the net asset value of the Company from 1.5% to 1.0%, (ii) reduced the incentive compensation on net investment income and net realized gains (reduced by any net unrealized losses) from 20% to 17.5% and (iii) reduced the cumulative total return hurdle from 8% to 7%.

Accordingly, the Company’s management fee is calculated at an annual rate of 1.5% on total assets (excluding cash and cash equivalents) up to an amount equal to 200% of the net asset value of the Company, and 1.0% thereafter. The management fee is calculated on a consolidated basis as of the beginning of each quarter and is payable to the Advisor quarterly in arrears.

Incentive compensation is only incurred to the extent the Company’s cumulative total return (after incentive compensation) exceeds a 7% annual rate on daily weighted-average contributed common equity. Subject to that limitation, incentive compensation is calculated on ordinary income (before incentive compensation) and net realized gains (net of any unrealized depreciation) at rates of 17.5% on income since the fee reduction on February 8, 2019 and 20% previously. Incentive compensation is computed as the difference between incentive compensation earned and incentive compensation paid, subject to the total return hurdle, on a cumulative basis since January 1, 2013, and is payable quarterly in arrears. Accordingly, the incentive compensation for any period may include amounts not earned in prior periods (due to the Company’s cumulative total return falling below the total return hurdle in such period), but subsequently earned when the Company’s cumulative total return again exceeds the total return hurdle (such amount, a “Catchup Amount”). During the three months ended June 30, 2020, the Company incurred a Catchup Amount of approximately $3.9 million, comprised of amounts related to net investment income for the three months ended March 31, 2020 but not paid in such period due to a temporary decline in asset valuations (the “First Quarter Catchup Amount”). However, rather than receiving all incentive compensation earned as of June 30, 2020, the Advisor voluntarily deferred 5/6 of the First Quarter Catchup Amount to subsequent quarters such that 1/6 of the First Quarter Catchup Amount will be paid in each subsequent quarter to the extent that the Company’s cumulative performance exceeds the total return hurdle in such quarter. As of September 30, 2021, the Company's cumulative performance continued to exceed the total return hurdle, and as such the incentive fee for the three months ended September 30, 2021 included $0.6 million, the final 1/6 of the First Quarter Catchup Amount.

A reserve for incentive compensation is accrued based on the amount of any additional incentive compensation that would have been payable to the Advisor assuming a hypothetical liquidation of the Company at net asset value on the balance sheet date. As of September 30, 2021 and December 31, 2020, no such reserve was accrued.

Through December 31, 2017, the incentive compensation was an equity allocation to SVCP’s general partner under its limited partnership agreement (the “LPA”). On January 29, 2018, SVCP amended and restated its limited partnership agreement, effective as of January 1, 2018, to convert the existing incentive compensation structure from a profit allocation and distribution to SVCP’s general partner to a fee payable to the Advisor pursuant to the then-existing investment management agreements. The amendment had no impact on the amount of the incentive compensation paid or services received by the Company.

The Company bears all expenses incurred in connection with its business, including fees and expenses of outside contracted services, such as custodian, administrative, legal, audit and tax preparation fees, costs of valuing investments, insurance costs, brokers’ and finders’ fees relating to investments, and any other transaction costs associated with the purchase and sale of investments.

34


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

4. Debt

Debt is comprised of convertible senior unsecured notes due March 2022 issued by the Company (the “2022 Convertible Notes”), unsecured notes due August 2024 issued by the Company (the “2024 Notes”), unsecured notes due February 2026 issued by the Company (the “2026 Notes”), amounts outstanding under a senior secured revolving, multi-currency credit facility issued by SVCP (the “Operating Facility”), amounts outstanding under a senior secured revolving credit facility issued by TCPC Funding II (“Funding Facility II”) and debentures guaranteed by the SBA (the “SBA Debentures”). Prior to being repaid on September 17, 2021, debt included $175.0 million in unsecured notes due August 2022 issued by the Company (the "2022 Notes"). Prior to being replaced by Funding Facility II on August 4, 2020, debt included $300.0 million in available debt under a senior secured revolving credit facility issued by TCPC Funding (“Funding Facility I”). Prior to its maturity on December 15, 2019, debt also included convertible senior unsecured notes due December 2019 issued by the Company (the “2019 Convertible Notes”).

Total debt outstanding and available at September 30, 2021 was as follows:

 

 

 

Maturity

 

Rate

 

 

Carrying

Value (1)

 

 

Available

 

 

Total

Capacity

 

 

Operating Facility

 

2026

 

L+1.75%

(2)

 

$

120,592,742

 

 

$

179,407,258

 

 

$

300,000,000

 

(3)

Funding Facility II

 

2025

 

L+2.00%

(4)

 

 

 

 

 

200,000,000

 

 

 

200,000,000

 

(5)

SBA Debentures

 

2024−2031

 

2.52%

(6)

 

 

150,000,000

 

 

 

 

 

 

150,000,000

 

 

2022 Convertible Notes ($140 million par)

 

2022

 

4.625%

 

 

 

139,717,275

 

 

 

 

 

 

139,717,275

 

 

2024 Notes ($250 million par)

 

2024

 

3.900%

 

 

 

248,283,127

 

 

 

 

 

 

248,283,127

 

 

2026 Notes ($325 million par)

 

2026

 

2.850%

 

 

 

326,642,360

 

 

 

 

 

 

326,642,360

 

 

Total leverage

 

 

 

 

 

 

 

985,235,504

 

 

$

379,407,258

 

 

$

1,364,642,762

 

 

Unamortized issuance costs

 

 

 

 

 

 

 

(7,393,385

)

 

 

 

 

 

 

 

 

 

Debt, net of unamortized issuance costs

 

 

 

 

 

 

$

977,842,119

 

 

 

 

 

 

 

 

 

 

 

(1)

Except for the convertible notes, the 2024 Notes and the 2026 Notes, all carrying values are the same as the principal amounts outstanding.

(2)

As of September 30, 2021, $8.6 million of the outstanding amount bore interest at a rate of EURIBOR + 2.00%.

(3)

Facility has a $100 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

(5)

Facility has a $50 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%. 

Total debt outstanding and available at December 31, 2020 was as follows: 

 

 

 

Maturity

 

Rate

 

 

Carrying

Value (1)

 

 

Available

 

 

Total

Capacity

 

 

Operating Facility

 

2024

 

L+2.00%

(2)

 

$

120,454,270

 

 

$

179,545,730

 

 

$

300,000,000

 

(3)

Funding Facility II

 

2025

 

L+2.00%

(4)

 

 

36,000,000

 

 

 

164,000,000

 

 

 

200,000,000

 

(5)

SBA Debentures

 

2024−2029

 

2.63%

(6)

 

 

138,000,000

 

 

 

12,000,000

 

 

 

150,000,000

 

 

2022 Convertible Notes ($140 million par)

 

2022

 

4.625%

 

 

 

139,219,797

 

 

 

 

 

 

139,219,797

 

 

2022 Notes ($175 million par)

 

2022

 

4.125%

 

 

 

174,778,395

 

 

 

 

 

 

174,778,395

 

 

2024 Notes ($250 million par)

 

2024

 

3.900%

 

 

 

247,871,909

 

 

 

 

 

 

247,871,909

 

 

Total leverage

 

 

 

 

 

 

 

856,324,371

 

 

$

355,545,730

 

 

$

1,211,870,101

 

 

Unamortized issuance costs

 

 

 

 

 

 

 

(6,308,172

)

 

 

 

 

 

 

 

 

 

Debt, net of unamortized issuance costs

 

 

 

 

 

 

$

850,016,199

 

 

 

 

 

 

 

 

 

 

 

(1)

Except for the convertible notes, the 2022 Notes and the 2024 Notes, all carrying values are the same as the principal amounts outstanding.

(2)

As of December 31, 2020, $9.0 million of the outstanding amount bore interest at a rate of EURIBOR + 2.00%.

(3)

Facility has a $100 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

(5)

Facility has a $50 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.

35


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

4. Debt — (continued)

 

(6)

Weighted-average interest rate, excluding fees of 0.35% or 0.36%.

The combined weighted-average interest rates on total debt outstanding at September 30, 2021 and December 31, 2020 were 3.22% and 3.54%, respectively.

Total expenses related to debt included the following: 

 

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Interest expense

 

$

27,337,394

 

 

$

27,752,458

 

Amortization of deferred debt issuance costs

 

 

2,781,330

 

 

 

2,635,272

 

Commitment fees

 

 

1,217,536

 

 

 

942,594

 

Total

 

$

31,336,260

 

 

$

31,330,324

 

 

Outstanding debt is carried at amortized cost in the Consolidated Statements of Assets and Liabilities. As of September 30, 2021, the estimated fair values of the Operating Facility, Funding Facility II and the SBA Debentures approximated their carrying values, and the 2022 Convertible Notes, the 2024 Notes and the 2026 Notes had estimated fair values of $140.9 million, $265.9 million and $332.7 million, respectively. As of December 31, 2020, the estimated fair values of the Operating Facility, Funding Facility I and the SBA Debentures approximated their carrying values, and the 2022 Convertible Notes, the 2022 Notes and the 2024 Notes had estimated fair values of $142.6 million, $180.4 million and $261.4 million, respectively. The estimated fair values of the Operating Facility, Funding Facility I, Funding Facility II and the SBA Debentures were determined by discounting projected remaining payments using market interest rates for borrowings of the Company and entities with similar credit risks at the measurement date. The estimated fair values of the 2022 Convertible Notes, 2022 Notes, 2024 Notes and 2026 Notes were determined using market quotations. The estimated fair values of the Operating Facility, Funding Facility I, Funding Facility II, the convertible notes, the 2022 Notes, the 2024 Notes, the 2026 Notes and the SBA Debentures as prepared for disclosure purposes were deemed to be Level 3 in the GAAP valuation hierarchy.

Convertible Unsecured Notes

On June 11, 2014, the Company issued $108.0 million of convertible senior unsecured notes, which matured on December 15, 2019. The 2019 Convertible Notes were general unsecured obligations of the Company, and ranked structurally junior to the revolving credit facilities and the SBA Debentures. The 2019 Convertible Notes bore interest at an annual rate of 5.25% and were redeemed in full at maturity.

On August 30, 2016, the Company issued $140.0 million of convertible senior unsecured notes that mature on March 1, 2022, unless previously converted or repurchased in accordance with their terms. The 2022 Convertible Notes are general unsecured obligations of the Company, and rank structurally junior to the Operating Facility, Funding Facility II and the SBA Debentures. The Company does not have the right to redeem the 2022 Convertible Notes prior to maturity. The 2022 Convertible Notes bear interest at an annual rate of 4.625%, payable semi-annually. In certain circumstances, the 2022 Convertible Notes will be convertible into cash, shares of the Company’s common stock or a combination of cash and shares of common stock (such combination to be at the Company’s election), at an initial conversion rate of 54.5019 shares of common stock per one thousand dollar principal amount of the 2022 Convertible Notes, which is equivalent to an initial conversion price of approximately $18.35 per share of common stock, subject to customary anti-dilutional adjustments. The initial conversion price was approximately 10.0% above the $16.68 per share closing price of the Company’s common stock on August 30, 2016. At September 30, 2021, the principal amount of the 2022 Convertible Notes exceeded the value of the conversion rate multiplied by the per share closing price of the Company’s common stock. Therefore, no additional shares have been added to the calculation of diluted earnings per common share and weighted average common shares outstanding.

Prior to the close of business on the business day immediately preceding September 1, 2021, holders could have converted their 2022 Convertible Notes only under certain circumstances set forth in the indenture governing the terms of the 2022 Convertible Notes. On or after September 1, 2021 until the close of business on the scheduled trading day immediately preceding March 1, 2022, holders may convert their 2022 Convertible Notes at any time. Upon conversion, the Company will pay or deliver, as the case may be, at its election, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, subject to the requirements of the indenture.

36


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

4. Debt (continued)

The 2019 Convertible Notes and 2022 Convertible Notes were accounted for in accordance with ASC Topic 470-20 – Debt with Conversion and Other Options. Upon conversion of any of the 2022 Convertible Notes, the Company intends to pay the outstanding principal amount in cash and, to the extent that the conversion value exceeds the principal amount, has the option to pay the excess amount in cash or shares of the Company’s common stock (or a combination of cash and shares), subject to the requirements of the respective indenture. The Company has determined that the embedded conversion options in the 2019 Convertible Notes and 2022 Convertible Notes were not required to be separately accounted for as derivatives under GAAP. At the time of issuance the estimated values of the debt and equity components of the 2019 Convertible Notes were approximately 97.7% and 2.3%, respectively. At the time of issuance the estimated values of the debt and equity components of the 2022 Convertible Notes were approximately 97.6% and 2.4%, respectively.

The original issue discounts equal to the equity components of the 2019 Convertible Notes and 2022 Convertible Notes were recorded in “paid-in capital in excess of par” in the accompanying Consolidated Statements of Assets and Liabilities. As a result, the Company records interest expense comprised of both stated interest and amortization of the original issue discounts. At the time of issuance, the equity components of the 2019 Convertible Notes and the 2022 Convertible Notes were $2.5 million and $3.3 million, respectively. As of September 30, 2021 and December 31, 2020, the components of the carrying values of the 2022 Convertible Notes were as follows:

 

 

 

September 30, 2021

 

 

December 31, 2020

 

Principal amount of debt

 

$

140,000,000

 

 

$

140,000,000

 

Original issue discount, net of accretion

 

 

(282,725

)

 

 

(780,203

)

Carrying value of debt

 

$

139,717,275

 

 

$

139,219,797

 

 

For the nine months ended September 30, 2021 and 2020, the components of interest expense for the convertible notes were as follows:

 

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Stated interest expense

 

$

4,856,250

 

 

$

4,856,250

 

Amortization of original issue discount

 

 

497,478

 

 

 

471,902

 

Total interest expense

 

$

5,353,728

 

 

$

5,328,152

 

 

The estimated effective interest rate of the debt component of the 2022 Convertible Notes, equal to the stated interest of 4.625% plus the accretion of the original issue discount, was approximately 5.125% for the nine months ended September 30, 2021.

Unsecured Notes

On August 4, 2017, the Company issued $125.0 million of unsecured notes that mature on August 11, 2022, unless previously repurchased or redeemed in accordance with their terms. On November 3, 2017, the Company issued an additional $50.0 million of the 2022 Notes. The 2022 Notes bear interest at an annual rate of 4.125%, payable semi-annually, and all principal is due upon maturity. The 2022 Notes are general unsecured obligations of the Company and rank structurally junior to the Operating Facility, Funding Facility I, Funding Facility II and the SBA Debentures, and rank pari passu with the 2022 Convertible Notes, the 2024 Notes and the 2026 Notes.

On September 17, 2021 and pursuant to the indenture governing the 2022 Notes, the Company redeemed all $175.0 million of the 2022 Notes then outstanding at a price equal to par plus a "make whole" premium, and accrued and unpaid interest. In connection with the redemption, the Company recognized a $6.2 million loss on extinguishment of debt as reflected in the Consolidated Statement of Operations.

 

 

 

 

 

37


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

 

4. Debt — (continued)

On August 23, 2019, the Company issued $150.0 million of unsecured notes that mature on August 23, 2024, unless previously repurchased or redeemed in accordance with their terms. On November 26, 2019, the Company issued an additional $50.0 million of the 2024 Notes and on October 2, 2020, the Company issued an additional $50.0 million of the 2024 Notes for a total outstanding aggregate principal amount of $250.0 million. The 2024 Notes bear interest at an annual rate of 3.900%, payable semi-annually, and all principal is due upon maturity. The 2024 Notes are general unsecured obligations of the Company and rank structurally junior to the Operating Facility, Funding Facility I, Funding Facility II and the SBA Debentures, and rank pari passu with the 2022 Convertible Notes and the 2026 Notes. The 2024 Notes may be redeemed in whole or part at the Company's option at a redemption price equal to par plus a "make whole" premium, as determined pursuant to the indenture governing the 2024 Notes, and any accrued and unpaid interest. The 2024 Notes were issued at a discount to the principal amount.  

On February 9, 2021, the Company issued $175.0 million of unsecured notes that mature on February 9, 2026, unless previously repurchased or redeemed in accordance with their terms. The 2026 Notes were issued at a discount to the principal amount. On August 27, 2021, the Company issued an additional $150.0 million of the 2026 Notes, at a premium to par, for a total outstanding aggregate principal amount of $325.0 million. The 2026 Notes bear interest at an annual rate of 2.850%, payable semi-annually, and all principal is due upon maturity. The 2026 Notes are general unsecured obligations of the Company and rank structurally junior to the Operating Facility, Funding Facility I, Funding Facility II and the SBA Debentures, and rank pari passu with the 2022 Convertible Notes and the 2024 Notes. The 2026 Notes may be redeemed in whole or part at the Company's option at a redemption price equal to par plus a "make whole" premium, as determined pursuant to the indenture governing the 2026 Notes, and any accrued and unpaid interest.

As of September 30, 2021 and December 31, 2020, the components of the carrying value of the 2022 Notes, 2024 Notes and 2026 Notes were as follows:

 

 

 

September 30, 2021

 

 

December 31, 2020

 

 

2022 Notes

 

2024 Notes

 

 

2026 Notes

 

 

2022 Notes

 

 

2024 Notes

 

 

2026 Notes

Principal amount of debt

 

N/A

 

$

250,000,000

 

 

$

325,000,000

 

 

$

175,000,000

 

 

$

250,000,000

 

 

N/A

Original issue (discount)/premium, net of accretion

 

N/A

 

 

(1,716,873

)

 

 

1,642,360

 

 

 

(221,605

)

 

 

(2,128,091

)

 

N/A

Carrying value of debt

 

N/A

 

$

248,283,127

 

 

$

326,642,360

 

 

$

174,778,395

 

 

$

247,871,909

 

 

N/A

 

For the nine months ended September 30, 2021 and 2020, the components of interest expense for the 2022 Notes, 2024 Notes and 2026 Notes were as follows:

 

 

 

Nine Months Ended September 30,

 

 

2021

 

 

2020

 

 

2022 Notes

 

 

2024 Notes

 

 

2026 Notes

 

 

2022 Notes

 

 

2024 Notes

 

 

2026 Notes

Stated interest expense

 

$

5,133,333

 

 

$

7,312,500

 

 

$

3,617,917

 

 

$

5,414,063

 

 

$

5,850,000

 

 

N/A

Amortization of original issue discount

 

 

94,927

 

 

 

411,218

 

 

 

38,360

 

 

 

95,763

 

 

 

328,622

 

 

N/A

Total interest expense

 

$

5,228,260

 

 

$

7,723,718

 

 

$

3,656,277

 

 

$

5,509,826

 

 

$

6,178,622

 

 

N/A

 

Operating Facility

The Operating Facility consists of a revolving, multi-currency credit facility which provides for amounts to be drawn up to $300.0 million, subject to certain collateral and other restrictions. The Operating Facility includes a $100 million accordion feature which allows for expansion of the facility to up to $400.0 million subject to consent from the lender and other customary conditions. Most of the cash and investments held directly by SVCP, as well as the net assets of TCPC Funding, TCPC Funding II and the SBIC, are included in the collateral for the facility.

On June 22, 2021, the Operating Facility was amended to (i) extend the maturity date by two years from May 6, 2024 to May 6, 2026, (ii) change the interest rate applicable to borrowings to (a) LIBOR plus an applicable margin equal to either 1.75% or 2.00%, or (b) in the case of ABR borrowings, generally the prime rate in effect plus an applicable margin of either 0.75% or 1.00% depending on a ratio of the borrowing base to the facility commitments in both cases, and (iii) reduce commitment fees on the undrawn portion of the Operating Facility above the minimum utilization amount from 0.50% per annum to 0.375% per annum.  Undrawn portions of the Operating Facility below the minimum utilization amount continue to accrue commitment fees at a rate of 0.50% per annum until the earlier of (i) March 1, 2022 and (ii) the date on which the March 2022 Convertible Notes are terminated in full, after which time they will accrue at a rate of 2.00% per annum.  The Operating Facility may be terminated, and any outstanding amounts thereunder may become due and payable, should SVCP fail to satisfy certain financial or other covenants. As of September 30, 2021, SVCP was in full compliance with such covenants.

38


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

4. Debt — (continued)

Funding Facility I

Funding Facility I was a senior secured revolving credit facility which provided for amounts to be drawn up to $300.0 million, subject to certain collateral and other restrictions and had a maturity of May 31, 2023. Borrowings under Funding Facility I bore interest at a rate of LIBOR plus either 2.00% or 2.35% per annum, subject to certain funding requirements, plus an administrative fee of 0.25% per annum. In addition to amounts due on outstanding debt, the facility accrued commitment fees of 0.25% per annum on the unused portion of the facility, or 0.50% per annum when the unused portion is greater than 33% of the total facility, plus an administrative fee of 0.25% per annum. The facility was terminated in August 2020 and replaced with Funding Facility II.

Funding Facility II

Funding Facility II is a senior secured revolving credit facility which provides for amounts to be drawn up to $200.0 million, subject to certain collateral and other restrictions. The facility contains an accordion feature which allows for expansion of the facility to up to $250.0 million subject to consent from the lender and other customary conditions. The cash and investments of TCPC Funding II are included in the collateral for the facility.

Borrowings under Funding Facility II bear interest at a rate of LIBOR plus 2.00% per annum, subject to certain funding requirements, plus a 0.35% fee on drawn amounts and an administrative fee of 0.15% per annum on the facility. The facility also accrues commitment fees of 0.35% per annum on the unused portion of the facility. The facility may be terminated, and any outstanding amounts thereunder may become due and payable, should TCPC Funding II fail to satisfy certain financial or other covenants. As of September 30, 2021, TCPC Funding II was in full compliance with such covenants.

SBA Debentures

As of September 30, 2021, the SBIC is able to issue up to $150.0 million in SBA Debentures, subject to funded regulatory capital and other customary regulatory requirements. As of September 30, 2021, SVCP had committed $87.5 million of regulatory capital to the SBIC, all of which had been funded. SBA Debentures are non-recourse and may be prepaid at any time without penalty. Once drawn, the SBIC debentures bear an interim interest rate of LIBOR plus 30 basis points. The rate then becomes fixed at the time of SBA pooling, which occurs twice each year, and is set to the then-current 10-year treasury rate plus a spread and an annual SBA charge.

SBA Debentures outstanding as of September 30, 2021 were as follows:

Issuance Date

 

Maturity

 

Debenture

Amount

 

 

Fixed

Interest

Rate

 

 

SBA

Annual

Charge

 

September 24, 2014

 

September 1, 2024

 

$

18,500,000

 

 

 

3.02

%

 

 

0.36

%

March 25, 2015

 

March 1, 2025

 

 

9,500,000

 

 

 

2.52

%

 

 

0.36

%

September 23, 2015

 

September 1, 2025

 

 

10,800,000

 

 

 

2.83

%

 

 

0.36

%

March 23, 2016

 

March 1, 2026

 

 

4,000,000

 

 

 

2.51

%

 

 

0.36

%

September 21, 2016

 

September 1, 2026

 

 

18,200,000

 

 

 

2.05

%

 

 

0.36

%

September 20, 2017

 

September 1, 2027

 

 

14,000,000

 

 

 

2.52

%

 

 

0.36

%

March 21, 2018

 

March 1, 2028

 

 

8,000,000

 

 

 

3.19

%

 

 

0.35

%

September 19, 2018

 

September 1, 2028

 

 

15,000,000

 

 

 

3.55

%

 

 

0.35

%

September 25, 2019

 

September 1, 2029

 

 

40,000,000

 

 

 

2.28

%

 

 

0.35

%

September 22, 2021

 

September 1, 2031

 

 

12,000,000

 

 

 

1.30

%

 

 

0.35

%

 

 

 

 

 

150,000,000

 

 

 

2.52

%

*

 

 

 

 

*

Weighted-average interest rate

39


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

4. Debt — (continued)

SBA Debentures outstanding as of December 31, 2020 were as follows:

 

Issuance Date

 

Maturity

 

Debenture

Amount

 

 

Fixed

Interest

Rate

 

 

SBA

Annual

Charge

 

September 24, 2014

 

September 1, 2024

 

$

18,500,000

 

 

 

3.02

%

 

 

0.36

%

March 25, 2015

 

March 1, 2025

 

 

9,500,000

 

 

 

2.52

%

 

 

0.36

%

September 23, 2015

 

September 1, 2025

 

 

10,800,000

 

 

 

2.83

%

 

 

0.36

%

March 23, 2016

 

March 1, 2026

 

 

4,000,000

 

 

 

2.51

%

 

 

0.36

%

September 21, 2016

 

September 1, 2026

 

 

18,200,000

 

 

 

2.05

%

 

 

0.36

%

September 20, 2017

 

September 1, 2027

 

 

14,000,000

 

 

 

2.52

%

 

 

0.36

%

March 21, 2018

 

March 1, 2028

 

 

8,000,000

 

 

 

3.19

%

 

 

0.35

%

September 19, 2018

 

September 1, 2028

 

 

15,000,000

 

 

 

3.55

%

 

 

0.35

%

September 25, 2019

 

September 1, 2029

 

 

40,000,000

 

 

 

2.28

%

 

 

0.35

%

 

 

 

 

$

138,000,000

 

 

 

2.63

%

*

 

 

 

 

*

Weighted-average interest rate

5. Commitments, Contingencies, Concentration of Credit Risk and Off-Balance Sheet Risk

SVCP, TCPC Funding, TCPC Funding II and the SBIC conduct business with brokers and dealers that are primarily headquartered in New York and Los Angeles and are members of the major securities exchanges. Banking activities are conducted with a firm headquartered in the San Francisco area.

In the normal course of business, investment activities involve executions, settlement and financing of various transactions resulting in receivables from, and payables to, brokers, dealers and the custodian. These activities may expose the Company to risk in the event that such parties are unable to fulfill contractual obligations. Management does not anticipate any material losses from counterparties with whom it conducts business. Consistent with standard business practice, the Company, SVCP, TCPC Funding, TCPC Funding II and the SBIC enter into contracts that contain a variety of indemnifications, and are engaged from time to time in various legal actions. The maximum exposure under these arrangements and activities is unknown. However, management expects the risk of material loss to be remote.

40


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

5. Commitments, Contingencies, Concentration of Credit Risk and Off-Balance Sheet Risk — (continued)

The Consolidated Schedules of Investments include certain revolving loan facilities and other commitments with unfunded balances at September 30, 2021 and December 31, 2020 as follows:

 

 

 

 

 

Unfunded Balances

 

Issuer

 

Maturity

 

September 30, 2021

 

 

December 31, 2020

 

2-10 Holdco, Inc.

 

3/26/2026

 

$

723,670

 

 

$

416,667

 

Acquia, Inc.

 

11/1/2025

 

 

1,659,488

 

 

 

1,803,792

 

ALCV Purchaser, Inc. (AutoLenders)

 

2/25/2026

 

 

662,974

 

 

N/A

 

Applause App Quality, Inc.

 

9/20/2022

 

 

1,509,820

 

 

 

1,509,820

 

Appriss Health, LLC (PatientPing)

 

5/6/2027

 

 

544,531

 

 

N/A

 

Aras Corporation

 

4/13/2027

 

 

2,035,443

 

 

N/A

 

Auto Trakk SPV, LLC

 

12/21/2021

 

N/A

 

 

 

3,193,208

 

Backoffice Associates Holdings, LLC (Syniti)

 

4/30/2026

 

 

1,114,481

 

 

N/A

 

CAREATC, Inc.

 

3/14/2024

 

 

607,288

 

 

 

607,288

 

Certify, Inc.

 

2/28/2024

 

 

797,158

 

 

 

797,158

 

Colony Display, LLC

 

6/30/2026

 

 

3,538,254

 

 

N/A

 

Cybergrants Holdings, LLC

 

9/8/2027

 

 

555,556

 

 

N/A

 

Dude Solutions Holdings, Inc.

 

6/13/2025

 

 

2,207,896

 

 

 

2,207,896

 

ESO Solutions, Inc.

 

5/3/2027

 

 

1,750,277

 

 

N/A

 

IT Parent, LLC (Insurance Technologies)

 

10/1/2026

 

 

458,333

 

 

 

125,000

 

James Perse Enterprises, Inc.

 

9/8/2027

 

 

1,944,444

 

 

N/A

 

Rhode Holdings, Inc. (Kaseya)

 

5/2/2025

 

 

3,298,042

 

 

N/A

 

Kellermeyer Bergensons Services, LLC

 

11/7/2026

 

N/A

 

 

 

1,588,235

 

Khoros, LLC (Lithium)

 

10/3/2022

 

 

1,983,364

 

 

 

1,322,243

 

Olaplex, Inc.

 

1/8/2025

 

 

1,340,000

 

 

 

1,340,000

 

Porcelain Acquisition Corporation (Paramount)

 

4/30/2027

 

 

2,686,999

 

 

N/A

 

Patient Point Network Solutions, LLC

 

6/26/2022

 

N/A

 

 

 

528,187

 

Pluralsight, Inc.

 

4/6/2027

 

 

2,417,128

 

 

N/A

 

Razor Group GmbH (Germany)

 

9/30/2025

 

 

8,990,707

 

 

N/A

 

ResearchGate GmBH

 

10/1/2022

 

N/A

 

 

 

8,286,000

 

Rhode Holdings, Inc. (Kaseya)

 

5/2/2025

 

N/A

 

 

 

2,243,838

 

RigUp, Inc.

 

3/1/2024

 

N/A

 

 

 

9,666,667

 

Sandata Technologies, LLC

 

7/23/2024

 

 

2,250,000

 

 

 

2,250,000

 

SEP Raptor Acquisition, Inc. (Loopio) (Canada)

 

3/31/2027

 

 

1,163,276

 

 

N/A

 

Snow Software AB

 

4/17/2024

 

N/A

 

 

 

3,052,384

 

Sonny’s Enterprises, LLC

 

8/5/2026

 

N/A

 

 

 

9,208,057

 

Space Midco, Inc. (Archibus)

 

12/5/2023

 

N/A

 

 

 

277,778

 

Spark Networks, Inc.

 

7/1/2023

 

 

1,005,887

 

 

 

1,005,887

 

Sunland Asphalt & Construction, LLC

 

1/13/2022

 

 

1,312,184

 

 

N/A

 

Superman Holdings, LLC (Foundation Software)

 

8/31/2026

 

 

1,256,026

 

 

 

1,256,026

 

Sep Vulcan Acquisition, Inc. (Tasktop) (Canada)

 

3/16/2027

 

 

1,119,498

 

 

N/A

 

Team Software, Inc.

 

9/17/2023

 

N/A

 

 

 

2,457,847

 

Telarix, Inc.

 

11/19/2023

 

 

357,143

 

 

 

357,143

 

Tempus, LLC (Epic Staffing)

 

2/5/2027

 

 

4,084,459

 

 

N/A

 

Thermostat Buyer, LLC (Reedy Industries)

 

8/31/2029

 

 

1,329,250

 

 

N/A

 

Thras.io, LLC

 

12/18/2026

 

 

8,787,651

 

 

 

9,939,759

 

Unanet, Inc.

 

5/31/2024

 

 

2,525,510

 

 

 

2,525,510

 

Xactly Corporation

 

7/31/2022

 

 

854,898

 

 

 

854,898

 

Total Unfunded Balances

 

 

 

$

66,871,634

 

 

$

68,821,288

 

 

 

41


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

 

6. Other Related Party Transactions

The Company, SVCP, TCPC Funding, TCPC Funding II, the SBIC, the Advisor and their members and affiliates may be considered related parties. From time to time, SVCP advances payments to third parties on behalf of the Company which are reimbursable through deductions from distributions to the Company. At September 30, 2021 and December 31, 2020, no such amounts were outstanding. From time to time, the Advisor advances payments to third parties on behalf of the Company and SVCP and receives reimbursement from the Company. At September 30, 2021 and December 31, 2020, amounts reimbursable to the Advisor totaled $0.6 million and $1.3 million, respectively, as reflected in the Consolidated Statements of Assets and Liabilities.

Pursuant to an administration agreement between the Administrator and the Company (the “Administration Agreement”), the Administrator may be reimbursed for costs and expenses incurred by the Administrator for office space rental, office equipment and utilities allocable to the Company, as well as costs and expenses incurred by the Administrator or its affiliates relating to any administrative, operating, or other non-investment advisory services provided by the Administrator or its affiliates to the Company. For the three months ended September 30, 2021 and 2020, expenses allocated pursuant to the Administration Agreement totaled $0.4 million and $0.5 million, respectively. For the nine months ended September 30, 2021 and 2020, expenses allocated pursuant to the Administration Agreement totaled $1.4 million and $1.6 million, respectively.

7. Stockholders’ Equity and Dividends

Prior to its discontinuance effective July 7, 2020, the Company had offered an “opt in” dividend reinvestment plan to common stockholders, pursuant to which the dividends payable to those shareholders who so elected would be reinvested in shares of common stock. The following table summarizes the total shares issued and proceeds received in connection with the Company’s dividend reinvestment plan for the nine months ended September 30, 2020:

 

 

 

 

 

2020

 

Shares Issued

 

 

 

 

838

 

Average Price Per Share

 

 

 

$

7.46

 

Proceeds

 

 

 

$

6,253

 

The Company’s dividends are recorded on the ex-dividend date. The following table summarizes the Company’s dividends declared and paid for the nine months ended September 30, 2021:

 

Date Declared

 

Record Date

 

Payment Date

 

Type

 

Amount

Per

Share

 

 

Total Amount

 

February 25, 2021

 

March 17, 2021

 

March 31, 2021

 

Regular

 

$

0.30

 

 

$

17,330,179

 

May 5, 2021

 

June 16, 2021

 

June 30, 2021

 

Regular

 

 

0.30

 

 

 

17,330,179

 

August 2, 2021

 

September 16, 2021

 

September 30, 2021

 

Regular

 

 

0.30

 

 

 

17,330,179

 

 

 

 

 

 

 

 

 

$

0.90

 

 

$

51,990,537

 

The following table summarizes the Company’s dividends declared and paid for the nine months ended September 30, 2020:

 

Date Declared

 

Record Date

 

Payment Date

 

Type

 

Amount

Per

Share

 

 

Total Amount

 

February 26, 2020

 

March 17, 2020

 

March 31, 2020

 

Regular

 

$

0.36

 

 

$

21,155,913

 

May 11, 2020

 

June 16, 2020

 

June 30, 2020

 

Regular

 

 

0.36

 

 

 

20,796,088

 

August 6, 2020

 

September 16, 2020

 

September 30, 2020

 

Regular

 

 

0.30

 

 

 

17,330,179

 

 

 

 

 

 

 

 

 

$

1.02

 

 

$

59,282,180

 

42


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

 

7. Stockholders’ Equity and Dividends — (continued)

On February 24, 2015, the Company’s board of directors approved a stock repurchase plan (the “Company Repurchase Plan”) to acquire up to $50.0 million in the aggregate of the Company’s common stock at prices at certain thresholds below the Company’s net asset value per share, in accordance with the guidelines specified in Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934. The Company Repurchase Plan is designed to allow the Company to repurchase its common stock at times when it otherwise might be prevented from doing so under insider trading laws. The Company Repurchase Plan requires an agent selected by the Company to repurchase shares of common stock on the Company’s behalf if and when the market price per share is at certain thresholds below the most recently reported net asset value per share. Under the plan, the agent will increase the volume of purchases made if the price of the Company’s common stock declines, subject to volume restrictions. The timing and amount of any stock repurchased depends on the terms and conditions of the Company Repurchase Plan, the market price of the common stock and trading volumes, and no assurance can be given that any particular amount of common stock will be repurchased. The Company Repurchase Plan was re-approved on July 29, 2021, to be in effect through the earlier of two trading days after the Company’s third quarter 2021 earnings release unless further extended or terminated by the Company’s board of directors, or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions.

The following table summarizes the total shares repurchased and amounts paid by the Company under the Company Repurchase Plan, including broker fees, for the nine months ended September 30, 2020:

 

 

 

Shares

Repurchased

 

 

Price Per

Share

 

 

Total Cost

 

Company Repurchase Plan

 

 

1,000,000

 

 

$

6.10

 

*

$

6,100,190

 

 

*

Weighted-average price per share

8. Earnings Per Share

In accordance with ASC 260, Earnings per Share, basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, if any, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis. The following information sets forth the computation of the net increase in net assets per share resulting from operations for the three and nine months ended September 30, 2021 and 2020:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net increase (decrease) in net assets from operations

$

10,896,679

 

 

$

46,516,299

 

 

$

101,208,051

 

 

$

23,386,155

 

Weighted average shares outstanding

 

57,767,264

 

 

 

57,767,264

 

 

 

57,767,264

 

 

 

58,066,434

 

Earnings (loss) per share

$

0.19

 

 

$

0.81

 

 

$

1.75

 

 

$

0.40

 

 

9. Subsequent Events

On October 28, 2021, the Company’s board of directors re-approved the Company Repurchase Plan, to be in effect through the earlier of two trading days after the Company’s fourth quarter 2021 earnings release or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions.

On October 28, 2021, the Company’s board of directors established the role of Lead Independent Director, and elected Eric Draut to serve in this role. Mr. Draut has served on the Company’s board of directors since 2011 and had recently served as Chair of the Audit Committee. In conjunction with the establishment of a Lead Independent Director and Mr. Draut’s appointment, the board also appointed existing board members Peter Schwab and Freddie Reiss as Chair of the Governance and Compensation Committee and Chair of the Audit Committee, respectively.

On November 3, 2021, the Company’s board of directors declared a fourth quarter dividend of $0.30 per share payable on December 31, 2021 to stockholders of record as of the close of business on December 17, 2021.

43


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

10. Financial Highlights

 

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Per Common Share

 

 

 

 

 

 

 

 

Per share NAV at beginning of period

 

$

13.24

 

 

$

13.21

 

 

 

 

 

 

 

 

 

 

Investment operations:

 

 

 

 

 

 

 

 

Net investment income

 

 

0.95

 

 

 

1.09

 

Net realized and unrealized gain (loss)

 

 

0.91

 

 

 

(0.65

)

Total from investment operations

 

 

1.86

 

 

 

0.44

 

 

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

 

 

 

0.12

 

Loss on extinguishment of debt

 

 

(0.11

)

 

 

(0.04

)

 

 

 

 

 

 

 

 

 

Dividends to common shareholders

 

 

(0.90

)

 

 

(1.02

)

 

 

 

 

 

 

 

 

 

Per share NAV at end of period

 

$

14.09

 

 

$

12.71

 

 

 

 

 

 

 

 

 

 

Per share market price at end of period

 

$

13.57

 

 

$

9.81

 

 

 

 

 

 

 

 

 

 

Total return based on market value (1), (2)

 

 

28.7

%

 

 

(22.9

)%

Total return based on net asset value (1), (3)

 

 

13.2

%

 

 

3.9

%

 

 

 

 

 

 

 

 

 

Shares outstanding at end of period

 

 

57,767,264

 

 

 

57,767,264

 

 

 

 

 

 

 

 

 

 

Ratios to average common equity: (4)

 

 

 

 

 

 

 

 

Net investment income

 

 

9.8

%

 

 

12.0

%

Expenses before incentive fee

 

 

9.5

%

 

 

10.2

%

Expenses and incentive fee

 

 

11.3

%

 

 

11.6

%

 

 

 

 

 

 

 

 

 

Ending common shareholder equity

 

$

814,204,093

 

 

$

734,328,424

 

Portfolio turnover rate

 

 

29.2

%

 

 

16.5

%

Weighted-average debt outstanding

 

$

986,327,197

 

 

$

943,329,378

 

Weighted-average interest rate on debt

 

 

3.7

%

 

 

3.9

%

Weighted-average number of common shares

 

 

57,767,264

 

 

 

58,066,434

 

Weighted-average debt per share

 

$

17.07

 

 

$

16.25

 

 

 

(1)

Not annualized.

(2)

Total return based on market value equals the change in ending market value per share during share during the period plus declared dividends per share during the period, divided by the market value per share at the beginning of the period.

(3)

Total return based on net asset value equals the change in net asset value per share during the period plus declared dividends per share during the period, divided by the beginning net asset value per share at the beginning of the period.

(4)

Annualized, except for incentive compensation.

 

 

44


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

 

11. Senior Securities

Information about the Company's senior securities is shown in the following table as of the end of each of the last ten fiscal years and the period ended September 30, 2021.  

 

Class and Year

 

Total Amount

Outstanding(1)

 

 

Asset Coverage

Per Unit(2)

 

 

Involuntary Liquidating

Preference Per Unit(3)

 

 

Average Market

Value Per Unit(4)

Operating Facility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2021 (Unaudited)

 

$

120,593

 

 

$

13,653

 

 

 

 

 

N/A

Fiscal Year 2020

 

 

120,454

 

 

 

9,508

 

 

 

 

 

N/A

Fiscal Year 2019

 

 

108,498

 

 

 

5,812

 

 

 

 

 

N/A

Fiscal Year 2018

 

 

82,000

 

 

 

5,221

 

 

 

 

 

N/A

Fiscal Year 2017

 

 

57,000

 

 

 

6,513

 

 

 

 

 

N/A

Fiscal Year 2016

 

 

100,500

 

 

 

4,056

 

 

 

 

 

N/A

Fiscal Year 2015

 

 

124,500

 

 

 

3,076

 

 

 

 

 

N/A

Fiscal Year 2014

 

 

70,000

 

 

 

5,356

 

 

 

 

 

N/A

Fiscal Year 2013

 

 

45,000

 

 

 

8,176

 

 

 

 

 

N/A

Fiscal Year 2012

 

 

74,000

 

 

 

7,077

 

 

 

 

 

N/A

Fiscal Year 2011

 

 

29,000

 

 

 

13,803

 

 

 

 

 

N/A

Preferred Interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2021 (Unaudited)

 

N/A

 

 

NA

 

 

N/A

 

 

N/A

Fiscal Year 2020

 

N/A

 

 

NA

 

 

N/A

 

 

N/A

Fiscal Year 2019

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

Fiscal Year 2018

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

Fiscal Year 2017

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

Fiscal Year 2016

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

Fiscal Year 2015

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

Fiscal Year 2014

 

$

134,000

 

 

$

51,592

 

 

$

20,074

 

 

N/A

Fiscal Year 2013

 

 

134,000

 

 

 

68,125

 

 

 

20,075

 

 

N/A

Fiscal Year 2012

 

 

134,000

 

 

 

50,475

 

 

 

20,079

 

 

N/A

Fiscal Year 2011

 

 

134,000

 

 

 

49,251

 

 

 

20,070

 

 

N/A

Funding Facility I

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2021 (Unaudited)

 

N/A

 

 

N/A

 

 

 

 

 

N/A

Fiscal Year 2020

 

N/A

 

 

N/A

 

 

 

 

 

N/A

Fiscal Year 2019

 

$

158,000

 

 

$

5,812

 

 

 

 

 

N/A

Fiscal Year 2018

 

 

212,000

 

 

 

5,221

 

 

 

 

 

N/A

Fiscal Year 2017

 

 

175,000

 

 

 

6,513

 

 

 

 

 

N/A

Fiscal Year 2016

 

 

175,000

 

 

 

4,056

 

 

 

 

 

N/A

Fiscal Year 2015

 

 

229,000

 

 

 

3,076

 

 

 

 

 

N/A

Fiscal Year 2014

 

 

125,000

 

 

 

5,356

 

 

 

 

 

N/A

Fiscal Year 2013

 

 

50,000

 

 

 

8,176

 

 

 

 

 

N/A

Funding Facility II

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2021 (Unaudited)

 

$

 

 

$

13,653

 

 

 

 

 

N/A

Fiscal Year 2020

 

 

36,000

 

 

 

9,508

 

 

 

 

 

N/A

SBA Debentures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2021 (Unaudited)

 

$

150,000

 

 

$

13,653

 

 

 

 

 

N/A

Fiscal Year 2020

 

 

138,000

 

 

 

9,508

 

 

 

 

 

N/A

Fiscal Year 2019

 

 

138,000

 

 

 

5,812

 

 

 

 

 

N/A

Fiscal Year 2018

 

 

98,000

 

 

 

5,221

 

 

 

 

 

N/A

Fiscal Year 2017

 

 

83,000

 

 

 

6,513

 

 

 

 

 

N/A

Fiscal Year 2016

 

 

61,000

 

 

 

4,056

 

 

 

 

 

N/A

Fiscal Year 2015

 

 

42,800

 

 

 

3,076

 

 

 

 

 

N/A

Fiscal Year 2014

 

 

28,000

 

 

 

5,356

 

 

 

 

 

N/A

2019 Convertible Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2021 (Unaudited)

 

N/A

 

 

N/A

 

 

 

 

 

N/A

Fiscal Year 2020

 

N/A

 

 

N/A

 

 

 

 

 

N/A

Fiscal Year 2019

 

N/A

 

 

N/A

 

 

 

 

 

N/A

Fiscal Year 2018

 

$

108,000

 

 

$

2,157

 

 

 

 

 

N/A

Fiscal Year 2017

 

 

108,000

 

 

 

2,335

 

 

 

 

 

N/A

Fiscal Year 2016

 

 

108,000

 

 

 

2,352

 

 

 

 

 

N/A

Fiscal Year 2015

 

 

108,000

 

 

 

2,429

 

 

 

 

 

N/A

Fiscal Year 2014

 

 

108,000

 

 

 

3,617

 

 

 

 

 

N/A

2022 Convertible Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2021 (Unaudited)

 

$

140,000

 

 

$

1,977

 

 

 

 

 

N/A

Fiscal Year 2020

 

 

140,000

 

 

 

2,058

 

 

 

 

 

N/A

Fiscal Year 2019

 

 

140,000

 

 

 

1,992

 

 

 

 

 

N/A

Fiscal Year 2018

 

 

140,000

 

 

 

2,157

 

 

 

 

 

N/A

Fiscal Year 2017

 

 

140,000

 

 

 

2,335

 

 

 

 

 

N/A

Fiscal Year 2016

 

 

140,000

 

 

 

2,352

 

 

 

 

 

N/A

2022 Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2021 (Unaudited)

 

N/A

 

 

N/A

 

 

 

 

 

N/A

Fiscal Year 2020

 

 

175,000

 

 

 

2,058

 

 

 

 

 

N/A

Fiscal Year 2019

 

 

175,000

 

 

 

1,992

 

 

 

 

 

N/A

Fiscal Year 2018

 

 

175,000

 

 

 

2,157

 

 

 

 

 

N/A

Fiscal Year 2017

 

 

175,000

 

 

 

2,335

 

 

 

 

 

N/A

2024 Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2021 (Unaudited)

 

$

250,000

 

 

$

1,977

 

 

 

 

 

N/A

Fiscal Year 2020

 

 

250,000

 

 

 

2,058

 

 

 

 

 

N/A

Fiscal Year 2019

 

 

200,000

 

 

 

1,992

 

 

 

 

 

N/A

2026 Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2021 (Unaudited)

 

$

325,000

 

 

$

1,977

 

 

 

 

 

N/A

45


BlackRock TCP Capital Corp.

Notes to Consolidated Financial Statements (Unaudited) (Continued)

September 30, 2021

 

 

11. Senior Securities — (continued)

 

(1)

Total amount of each class of senior securities outstanding at the end of the period presented (in 000’s).

(2)

The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by senior securities representing indebtedness.  For the Operating Facility, Funding Facility I and Funding Facility II, the asset coverage ratio with respect to indebtedness is multiplied by $1,000 to determine the Asset Coverage Per Unit.

(3)

The amount to which such class of senior security would be entitled upon the voluntary liquidation of the issuer in preference to any security junior to it.  The “—” in this column indicates that the SEC expressly does not require this information to be disclosed for certain types of senior securities.

(4)

The Company's senior securities are not registered for public trading.

 

 

46


 

 

BlackRock TCP Capital Corp.

Consolidated Schedule of Changes in Investments in Non-Controlled Affiliates(1) (Unaudited)

Nine Months Ended September 30, 2021

 

Security

 

Dividends or

Interest (2)

 

 

Fair Value at

December 31,

2020

 

 

Net realized

gain or loss

 

 

Net increase

or decrease

in unrealized

appreciation

or depreciation

 

 

Acquisitions (3)

 

 

Dispositions (4)

 

 

Fair Value at

September 30,

2021

 

Edmentum Ultimate Holdings, LLC, Class A Common Units

 

$

867,570

 

 

$

-

 

 

$

1,028,057

 

 

$

-

 

 

$

(7,006

)

 

$

(1,021,051

)

 

$

-

 

Iracore International Holdings, Inc., Senior Secured 1st Lien

   Term Loan, LIBOR + 9%, 1% LIBOR Floor, due 4/13/21

 

 

100,414

 

 

 

1,324,140

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,324,140

 

Iracore Investments Holdings, Inc., Class A Common Stock

 

 

385,384

 

 

 

5,181,526

 

 

 

-

 

 

 

(899,979

)

 

 

-

 

 

 

-

 

 

 

4,281,547

 

NEG Parent, LLC (CORE Entertainment, Inc.), Class A Units

 

 

-

 

 

 

7,401,888

 

 

 

-

 

 

 

(205,746

)

 

 

-

 

 

 

-

 

 

 

7,196,142

 

NEG Parent, LLC (CORE Entertainment, Inc.), Class A

   Warrants to Purchase Class A Units

 

 

-

 

 

 

438,161

 

 

 

-

 

 

 

(9,830

)

 

 

-

 

 

 

-

 

 

 

428,331

 

NEG Parent, LLC (CORE Entertainment, Inc.), Class B

   Warrants to Purchase Class A Units

 

 

-

 

 

 

442,508

 

 

 

-

 

 

 

(9,927

)

 

 

-

 

 

 

-

 

 

 

432,581

 

TVG-Edmentum Holdings, LLC, Series A Preferred Units

 

 

2,487,921

 

 

 

27,758,980

 

 

 

5,068,544

 

 

 

(155,210

)

 

 

2,267,487

 

 

 

(34,939,801

)

 

 

 

TVG-Edmentum Holdings, LLC, Series B-1 Common Units

 

 

1,399,431

 

 

 

13,511,732

 

 

 

-

 

 

 

19,085,461

 

 

 

1,399,431

 

 

 

-

 

 

 

33,996,624

 

TVG-Edmentum Holdings, LLC, Series B-2 Common Units

 

 

-

 

 

 

12,868,247

 

 

 

-

 

 

 

21,128,377

 

 

 

-

 

 

 

-

 

 

 

33,996,624

 

Total

 

$

5,240,720

 

 

$

68,927,182

 

 

$

6,096,601

 

 

$

38,933,146

 

 

$

3,659,912

 

 

$

(35,960,852

)

 

$

81,655,989

 

 

 

Notes to Consolidated Schedule of Changes in Investments in Non-Controlled Affiliates:

(1)

The issuers of the securities listed on this schedule are considered non-controlled affiliates under the Investment Company Act of 1940 due to the ownership by the Company of 5% to 25% of the issuers' voting securities.

(2)

Also includes fee income as applicable.

(3)

Acquisitions include new purchases, PIK income and amortization of original issue and market discounts.

(4)

Dispositions include decreases in the cost basis from sales and paydowns.

47


 

BlackRock TCP Capital Corp.

Consolidated Schedule of Changes in Investments in Controlled Affiliates(1) (Unaudited)

Nine Months Ended September 30, 2021

 

Security

 

Dividends

or Interest

(2)

 

 

Fair Value at

December 31,

2020

 

 

Net realized

gain or loss

 

 

Net increase

or decrease

in unrealized

appreciation

or depreciation

 

 

Acquisitions (3)

 

 

Dispositions (4)

 

 

Fair Value at

September 30,

2021

 

36th Street Capital Partners Holdings, LLC, Membership

   Units

 

$

1,768,119

 

 

$

33,135,000

 

 

$

-

 

 

$

(3,930,391

)

 

$

2,541,391

 

 

$

-

 

 

$

31,746,000

 

36th Street Capital Partners Holdings, LLC, Senior Note,

   12%, due 11/1/25

 

 

3,696,003

 

 

 

40,834,419

 

 

 

-

 

 

 

-

 

 

 

2,958,609

 

 

 

-

 

 

 

43,793,028

 

Anacomp, Inc., Class A Common Stock

 

 

-

 

 

 

401,769

 

 

 

-

 

 

 

(188,329

)

 

 

-

 

 

 

-

 

 

 

213,440

 

Conergy Asia & ME Pte. Ltd., 1st Lien Term Loan, 0%,

   due 6/30/21

 

 

-

 

 

 

1,154,036

 

 

 

-

 

 

 

(182,738

)

 

 

-

 

 

 

-

 

 

 

971,298

 

Conergy Asia Holdings Limited, Class B Shares

 

 

-

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Conergy Asia Holdings Limited, Ordinary Shares

 

 

-

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Conventional Lending TCP Holdings, LLC,

   Membership Units

 

 

1,274,754

 

 

 

18,050,826

 

 

 

-

 

 

 

804,174

 

 

 

45,000

 

 

 

-

 

 

 

18,900,000

 

Kawa Solar Holdings Limited, Bank Guarantee

   Credit Facility, 0%, due 12/31/21

 

 

-

 

 

 

3,336,148

 

 

 

-

 

 

 

(3,234,833

)

 

 

-

 

 

 

-

 

 

 

101,315

 

Kawa Solar Holdings Limited, Ordinary Shares

 

 

-

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Kawa Solar Holdings Limited, Revolving Credit

   Facility, 0%, due 12/31/21

 

 

-

 

 

 

2,114,333

 

 

 

-

 

 

 

3,030,054

 

 

 

-

 

 

 

(3,133,334

)

 

 

2,011,053

 

Kawa Solar Holdings Limited, Series B Preferred Shares

 

 

-

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$

6,738,876

 

 

$

99,026,531

 

 

$

 

 

$

(3,702,063

)

 

$

5,545,000

 

 

$

(3,133,334

)

 

$

97,736,134

 

 

 

Notes to Consolidated Schedule of Changes in Investments in Controlled Affiliates:

(1)

The issuers of the securities listed on this schedule are considered controlled affiliates under the Investment Company Act of 1940 due to the ownership by the Company of more than 25% of the issuers' voting securities.

(2)

Also includes fee income as applicable.

(3)

Acquisitions include new purchases, PIK income and amortization of original issue and market discounts.

(4)

Dispositions include decreases in the cost basis from sales and paydowns.

48


 

BlackRock TCP Capital Corp.

Consolidated Schedule of Changes in Investments in Non-Controlled Affiliates (1)

Year Ended December 31, 2020

 

Security

 

Dividends or

Interest (2)

 

 

Fair Value at

December 31,

2019

 

 

Net realized

gain or loss

 

 

Net increase

or decrease

in unrealized

appreciation

or depreciation

 

 

Acquisitions (3)

 

 

Dispositions (4)

 

 

Fair Value at

December 31,

2020

 

AGY Holding Corp., Common Stock

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

AGY Holding Corp., Senior Secured 2nd Lien Notes, 11%,

   due 12/15/25

 

 

 

 

 

3,708,428

 

 

 

(8,778,822

)

 

 

5,070,394

 

 

 

 

 

 

 

 

 

 

AGY Holding Corp., Senior Secured Delayed Draw Term

   Loan A, 12%, due 9/15/20

 

 

94,024

 

 

 

 

 

 

 

 

 

 

 

 

1,227,453

 

 

 

(1,227,453

)

 

 

 

AGY Holding Corp., Senior Secured Delayed Draw Term

   Loan, 12%, due 9/15/20

 

 

59,678

 

 

 

1,114,120

 

 

 

(1,174,170

)

 

 

 

 

 

60,050

 

 

 

 

 

 

 

AGY Holding Corp., Senior Secured Term Loan A1, 12%,

   due 9/15/20

 

 

97,185

 

 

 

 

 

 

 

 

 

 

 

 

721,296

 

 

 

(721,296

)

 

 

 

AGY Holding Corp., Senior Secured Term Loan, 12%,

   due 9/15/20

 

 

155,135

 

 

 

5,171,151

 

 

 

(4,589,653

)

 

 

 

 

 

156,858

 

 

 

(738,356

)

 

 

 

Edmentum Ultimate Holdings, LLC, Class A Common

   Units

 

 

2,623,729

 

 

 

1,433,968

 

 

 

4,380,041

 

 

 

(753,742

)

 

 

 

 

 

(5,060,267

)

 

 

 

Edmentum Ultimate Holdings, LLC, Junior PIK Notes,

   10%, due 12/9/21

 

 

1,850,985

 

 

 

17,609,276

 

 

 

 

 

 

(72,760

)

 

 

1,927,179

 

 

 

(19,463,695

)

 

 

 

Edmentum Ultimate Holdings, LLC, Senior PIK Notes,

   8.5%, due 6/9/20

 

 

313,061

 

 

 

3,675,888

 

 

 

 

 

 

 

 

 

327,176

 

 

 

(4,003,064

)

 

 

 

Edmentum Ultimate Holdings, LLC, Warrants to

   Purchase Class A Common Units

 

 

 

 

 

7,084,470

 

 

 

4,947,853

 

 

 

(7,084,469

)

 

 

 

 

 

(4,947,854

)

 

 

 

Edmentum, Inc., Junior Revolving Facility, 5%, due 6/9/20

 

 

266,556

 

 

 

5,235,978

 

 

 

 

 

 

(5

)

 

 

474,037

 

 

 

(5,710,010

)

 

 

 

Edmentum, Inc., Senior Secured 1st Lien Term Loan B,

   8.5%, due 6/9/21

 

 

2,194,392

 

 

 

10,740,023

 

 

 

 

 

 

(1,173,442

)

 

 

1,466,235

 

 

 

(11,032,816

)

 

 

 

Edmentum, Inc., Senior Secured 2nd Lien Term Loan, 7%

   PIK, due 12/8/21

 

 

576,320

 

 

 

8,281,661

 

 

 

 

 

 

(8

)

 

 

603,596

 

 

 

(8,885,249

)

 

 

 

Edmentum, Inc., Senior Secured 2nd Lien Revolver, 5%

   PIK, due 12/9/21

 

 

834,028

 

 

 

 

 

 

 

 

 

 

 

 

5,805,188

 

 

 

(5,805,188

)

 

 

 

Educationcity Limited (Edmentum), Senior Unsecured

   Promissory Note, 10%, due 8/31/20

 

 

329,098

 

 

 

 

 

 

 

 

 

 

 

 

3,707,423

 

 

 

(3,707,423

)

 

 

 

Iracore International Holdings, Inc., Senior Secured 1st Lien

   Term Loan, LIBOR + 9%, 1% LIBOR Floor, due 4/13/21

 

 

169,286

 

 

 

1,635,903

 

 

 

 

 

 

 

 

 

 

 

 

(311,763

)

 

 

1,324,140

 

Iracore Investments Holdings, Inc., Class A Common Stock

 

 

 

 

 

2,476,881

 

 

 

 

 

 

2,704,645

 

 

 

 

 

 

 

 

 

5,181,526

 

KAGY Holding Company, Inc., Series A Preferred Stock

 

 

 

 

 

 

 

 

(1,091,199

)

 

 

1,091,199

 

 

 

 

 

 

 

 

 

 

NEG Parent, LLC (CORE Entertainment, Inc.), Class A Units

 

 

 

 

 

6,925,848

 

 

 

 

 

 

476,040

 

 

 

 

 

 

 

 

 

7,401,888

 

NEG Parent, LLC (CORE Entertainment, Inc.), Class A

   Warrants to Purchase Class A Units

 

 

 

 

 

391,407

 

 

 

 

 

 

46,754

 

 

 

 

 

 

 

 

 

438,161

 

NEG Parent, LLC (CORE Entertainment, Inc.), Class B

   Warrants to Purchase Class A Units

 

 

 

 

 

395,290

 

 

 

 

 

 

47,218

 

 

 

 

 

 

 

 

 

442,508

 

NEG Parent, LLC (CORE Entertainment, Inc.), Litigation

   Trust Units

 

 

 

 

 

 

 

 

45,038

 

 

 

 

 

 

 

 

 

(45,038

)

 

 

 

TVG-Edmentum Holdings, LLC, Series A Preferred Units

 

 

 

 

 

 

 

 

 

 

 

155,201

 

 

 

27,603,779

 

 

 

 

 

 

27,758,980

 

TVG-Edmentum Holdings, LLC, Series B-1 Common Units

 

 

 

 

 

 

 

 

 

 

 

90,570

 

 

 

13,421,162

 

 

 

 

 

 

13,511,732

 

TVG-Edmentum Holdings, LLC, Series B-2 Common Units

 

 

 

 

 

 

 

 

 

 

 

(552,915

)

 

 

13,421,162

 

 

 

 

 

 

12,868,247

 

Total

 

$

9,563,477

 

 

$

75,880,292

 

 

$

(6,260,912

)

 

$

44,680

 

 

$

70,922,594

 

 

$

(71,659,472

)

 

$

68,927,182

 

 

 

Notes to Consolidated Schedule of Changes in Investments in Non-Controlled Affiliates:

(1)

The issuers of the securities listed on this schedule are considered non-controlled affiliates under the Investment Company Act of 1940 due to the ownership by the Company of 5% to 25% of the issuers' voting securities.

(2)

Also includes fee and lease income as applicable.

(3)

Acquisitions include new purchases, PIK income and amortization of original issue and market discounts.

(4)

Dispositions include decreases in the cost basis from sales, paydowns, mortgage amortizations and aircraft depreciation.

49


 

BlackRock TCP Capital Corp.

Consolidated Schedule of Changes in Investments in Controlled Affiliates (1)

Year Ended December 31, 2020

 

Security

 

Dividends

or Interest (2)

 

 

Fair Value at

December 31,

2019

 

 

Net realized

gain or loss

 

 

Net increase

or decrease

in unrealized

appreciation

or depreciation

 

 

Acquisitions (3)

 

 

Dispositions (4)

 

 

Fair Value at

December 31,

2020

 

36th Street Capital Partners Holdings, LLC, Membership Units

 

$

2,471,415

 

 

$

31,682,859

 

 

$

 

 

$

1,452,141

 

 

$

 

 

$

 

 

$

33,135,000

 

36th Street Capital Partners Holdings, LLC, Senior Note, 12%,

   due 11/1/20

 

 

4,900,130

 

 

 

40,834,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40,834,419

 

Anacomp, Inc., Class A Common Stock

 

 

 

 

 

1,167,640

 

 

 

 

 

 

(765,871

)

 

 

 

 

 

 

 

 

401,769

 

Conergy Asia & ME Pte. Ltd., 1st Lien Term Loan, 10%,

   due 6/30/21

 

 

44,223

 

 

 

1,207,786

 

 

 

 

 

 

(390,084

)

 

 

336,334

 

 

 

 

 

 

1,154,036

 

Conergy Asia Holdings Limited, Class B Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conergy Asia Holdings Limited, Ordinary Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conventional Lending TCP Holdings, LLC,

   Membership Units

 

 

1,436,922

 

 

 

14,269,948

 

 

 

 

 

 

(950,043

)

 

 

4,730,921

 

 

 

 

 

 

18,050,826

 

Kawa Solar Holdings Limited, Bank Guarantee

   Credit Facility, 0%, due 12/31/21

 

 

 

 

 

3,289,438

 

 

 

 

 

 

46,710

 

 

 

 

 

 

 

 

 

3,336,148

 

Kawa Solar Holdings Limited, Ordinary Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kawa Solar Holdings Limited, Revolving Credit

   Facility, 0%, due 12/31/21

 

 

 

 

 

2,208,823

 

 

 

 

 

 

(94,490

)

 

 

 

 

 

 

 

 

2,114,333

 

Kawa Solar Holdings Limited, Series B Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United N659UA-767, LLC (Aircraft Trust Holding Company)

 

 

26,635

 

 

 

2,300,366

 

 

 

(32,062

)

 

 

(134,933

)

 

 

 

 

 

(2,133,371

)

 

 

 

United N661UA-767, LLC (Aircraft Trust Holding Company)

 

 

11,502

 

 

 

2,347,314

 

 

 

162,012

 

 

 

(121,954

)

 

 

 

 

 

(2,387,372

)

 

 

 

Total

 

$

8,890,827

 

 

$

99,308,593

 

 

$

129,950

 

 

$

(958,524

)

 

$

5,067,255

 

 

$

(4,520,743

)

 

$

99,026,531

 

 

 

Notes to Consolidated Schedule of Changes in Investments in Controlled Affiliates:

(1)

The issuers of the securities listed on this schedule are considered controlled affiliates under the Investment Company Act of 1940 due to the ownership by the Company of more than 25% of the issuers' voting securities.

(2)

Also includes fee and lease income as applicable.

(3)

Acquisitions include new purchases, PIK income and amortization of original issue and market discounts.

(4)

Dispositions include decreases in the cost basis from sales, paydowns, mortgage amortizations and aircraft depreciation.

50


 

BlackRock TCP Capital Corp.

Consolidated Schedule of Restricted Securities of Unaffiliated Issuers (Unaudited)

September 30, 2021

 

Investment

 

Acquisition Date

AGY Equity, LLC, Class A Preferred Units

 

9/3/2020

AGY Equity, LLC, Class B Preferred Units

 

9/3/2020

AGY Equity, LLC, Class C Common Units

 

9/3/2020

Autoalert Acquisition Co, LLC, Warrants to Purchase LLC Interests

 

6/30/20

Avanti Communications Group, PLC (144A), Senior New Money Initial Note, 9%, due 10/1/22

 

1/26/17

Avanti Communications Group, PLC (144A), Senior Second-Priority PIK Toggle Note, 9%, due 10/1/22

 

1/26/17

Envigo RMS Holding Corp., Common Stock

 

6/3/19

Fidelis (SVC) LLC, Series C Preferred Units

 

12/31/19

FinancialForce.com, Inc., Warrants to Purchase Series C Preferred Stock

 

1/30/19

Foursquare Labs, Inc., Warrants to Purchase Series E Preferred Stock

 

5/4/17

GACP I, LP (Great American Capital), Membership Units

 

10/1/15

GACP II, LP (Great American Capital), Membership Units

 

1/12/18

GlassPoint, Inc., Warrants to Purchase Common Stock

 

2/7/17

InMobi, Inc., Warrants to Purchase Common Stock

 

8/22/17

InMobi, Inc., Warrants to Purchase Series E Preferred Stock (Strike Price $20.01)

 

9/18/15

InMobi, Inc., Warrants to Purchase Series E Preferred Stock (Strike Price $28.58)

 

10/1/18

Nanosys, Inc., Warrants to Purchase Preferred Stock

 

3/29/16

Pico Quantitative Trading Holdings, LLC, Warrants to Purchase Membership Units

 

2/7/20

Quora, Inc., Warrants to Purchase Series D Preferred Stock

 

4/12/19

Razor Group GmbH (Germany), Warrants to Purchase Preferred Stock

 

4/28/21

ResearchGate Corporation., Warrants to Purchase Series D Preferred Stock

 

11/7/19

SnapLogic, Inc., Warrants to Purchase Series Preferred Stock

 

3/20/18

Soraa, Inc., Warrants to Purchase Preferred Stock

 

8/29/14

SoundCloud, Ltd., Warrants to Purchase Preferred Stock

 

4/30/15

Tradeshift, Inc., Warrants to Purchase Series D Preferred Stock

 

3/9/17

Utilidata, Inc., Common Stock

 

7/6/20

Utilidata, Inc., Series C Preferred Stock

 

7/6/20

Utilidata, Inc., Series CC Preferred Stock

 

7/6/20

Worldremit Group Limited (United Kingdom), Warrants to Purchase Series D Stock

 

2/11/21

 

 

51


 

 

BlackRock TCP Capital Corp.

Consolidated Schedule of Restricted Securities of Unaffiliated Issuers

December 31, 2020

 

Investment

 

Acquisition Date

Actifio, Inc., Warrants to Purchase Series F Preferred Stock

 

5/5/17

AutoAlert Acquisition Co, LLC, Warrants to Purchase LLC Interest

 

6/30/20

Avanti Communications Group, PLC (144A), Senior New Money Initial Note, 9%, due 10/1/22

 

1/26/17

Avanti Communications Group, PLC (144A), Senior Second-Priority PIK Toggle Note, 9%, due 10/1/22

 

1/26/17

Domo, Inc., Warrants to Purchase Common Stock

 

12/5/17

Envigo RMS Holding Corp., Common Stock

 

6/3/19

Fidelis (SVC) LLC, Series C Preferred Units

 

12/31/19

FinancialForce.com, Inc., Warrants to Purchase Series C Preferred Stock

 

1/30/19

Foursquare Labs, Inc., Warrants to Purchase Series E Preferred Stock

 

5/4/17

GACP I, LP (Great American Capital), Membership Units

 

10/1/15

GACP II, LP (Great American Capital), Membership Units

 

1/12/18

GlassPoint Solar, Inc., Warrants to Purchase Series C-1 Preferred Stock

 

2/7/17

GlassPoint Solar, Inc., Warrants to Purchase Series D Preferred Stock

 

3/16/18

InMobi, Inc., Warrants to Purchase Common Stock

 

8/22/17

InMobi, Inc., Warrants to Purchase Series E Preferred Stock

 

9/18/15

InMobi, Inc., Warrants to Purchase Series E Preferred Stock (Strike Price $28.58)

 

10/1/18

Nanosys, Inc., Warrants to Purchase Preferred Stock

 

3/29/16

Pico Quantitative Trading Holdings, LLC, Warrants to Purchase Membership Units

 

2/7/20

Quora, Inc., Warrants to Purchase Series D Preferred Stock

 

4/12/19

ResearchGate Corporation., Warrants to Purchase Series D Preferred Stock

 

11/7/19

SnapLogic, Inc., Warrants to Purchase Series Preferred Stock

 

3/20/18

Soraa, Inc., Warrants to Purchase Common Stock

 

8/29/14

SoundCloud, Ltd., Warrants to Purchase Preferred Stock

 

4/30/15

Tradeshift, Inc., Warrants to Purchase Series D Preferred Stock

 

3/9/17

Utilidata, Inc., Common Stock

 

7/6/20

Utilidata, Inc., Series C Preferred Stock

 

7/6/20

Utilidata, Inc., Series CC Preferred Stock

 

7/6/20

V Telecom Investment S.C.A. (Vivacom), Common Shares

 

11/9/12

 

 

52


 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information contained in this section should be read in conjunction with our unaudited consolidated financial statements and related notes thereto appearing elsewhere in this quarterly report on Form 10-Q. Some of the statements in this report (including in the following discussion) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or the future performance or financial condition of BlackRock TCP Capital Corp. (the “Company,” “we,” “us” or “our”), formerly known as TCP Capital Corp. The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning:

 

our, or our portfolio companies’, future business, operations, operating results or prospects;

 

the return or impact of current and future investments;

 

the impact of a protracted decline in the liquidity of credit markets on our business;

 

the impact of fluctuations in interest rates on our business;

 

the impact of changes in laws or regulations governing our operations or the operations of our portfolio companies;

 

our contractual arrangements and relationships with third parties;

 

the general economy and its impact on the industries in which we invest;

 

the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives;

 

our expected financings and investments;

 

the adequacy of our financing resources and working capital;

 

the ability of our investment advisor to locate suitable investments for us and to monitor and administer our investments;

 

the timing of cash flows, if any, from the operations of our portfolio companies;

 

the timing, form and amount of any dividend distributions; and

 

our ability to maintain our qualification as a regulated investment company and as a business development company.

We use words such as “anticipate,” “believe,” “expect,” “intend,” “will,” “should,” “could,” “may,” “plan” and similar words to identify forward-looking statements. The forward looking statements contained in this quarterly report involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth as “Risk Factors” in this report.

We have based the forward-looking statements included in this report on information available to us on the date of this report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the SEC, including annual reports on Form 10-K, registration statements on Form N-2, quarterly reports on Form 10-Q and current reports on Form 8-K.

Overview

The Company is a Delaware corporation formed on April 2, 2012 and is an externally managed, closed-end, non-diversified management investment company. The Company was formed through the conversion of a pre-existing closed-end investment company. The Company elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Our investment objective is to seek to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection. We invest primarily in the debt of middle-market companies as well as small businesses, including senior secured loans, junior loans, mezzanine debt and bonds. Such investments may include an equity component, and, to a lesser extent, we may make equity investments directly. Certain investment operations are conducted through the Company’s wholly-owned subsidiaries, Special Value Continuation Partners LLC, a Delaware limited liability company (“SVCP”), TCPC Funding I, LLC (“TCPC Funding”), TCPC Funding II, LLC ("TCPC Funding II") and TCPC SBIC, LP (the “SBIC”). SVCP was organized as a limited partnership and had elected to be regulated as a BDC under the 1940 Act through July 31, 2018. On August 1, 2018, SVCP withdrew its election to be regulated as a BDC under the 1940 Act and withdrew the registration of its common limited partner interests under Section 12(g) of the Securities Exchange Act of 1934 and, on August 2, 2018, terminated its general partner, Series H of SVOF/MM, LLC, and converted to a Delaware limited liability company. Series H of SVOF/MM, LLC (“SVOF/MM”) serves as the administrator (the “Administrator”) of the Company. The managing member of SVOF/MM is Tennenbaum Capital Partners, LLC (the “Advisor”), which serves as the investment manager to the Company, TCPC Funding, TCPC Funding II and the

53


 

SBIC. On August 1, 2018, the Advisor merged with and into a wholly owned subsidiary of BlackRock Capital Investment Advisors, LLC, an indirect wholly owned subsidiary of BlackRock, Inc. with the Advisor as the surviving entity. The SBIC was organized as a Delaware limited partnership in June 2013. On April 22, 2014, the SBIC received a license from the United States Small Business Administration (the “SBA”) to operate as a small business investment company under the provisions of Section 301(c) of the Small Business Investment Act of 1958.

The Company has elected to be treated as a regulated investment company (“RIC”) for U.S. federal income tax purposes. As a RIC, the Company will not be taxed on its income to the extent that it distributes such income each year and satisfies other applicable income tax requirements. TCPC Funding, TCPC Funding II and the SBIC have elected to be treated as partnerships for U.S. federal income tax purposes. SVCP was treated as a partnership for U.S. federal income tax purposes through August 1, 2018 and upon its conversion to a limited liability company on August 2, 2018, and thereafter is and will be treated as a disregarded entity.

Our leverage program is comprised of $300.0 million in available debt under a revolving, multi-currency credit facility issued by SVCP (the “Operating Facility”), $200.0 million in available debt under a senior secured revolving credit facility issued by TCPC Funding II (“Funding Facility II”), $140.0 million in convertible senior unsecured notes issued by the Company maturing in 2022 (the “2022 Convertible Notes”), $250.0 million in senior unsecured notes issued by the Company maturing in 2024 (the “2024 Notes”), $325.0 million in senior unsecured notes issued by the Company maturing in 2026 (the “2026 Notes”) and $150.0 million in committed leverage from the SBA (the “SBA Program” and, together with the Operating Facility, Funding Facility II, the 2022 Convertible Notes, the 2024 Notes and the 2026 Notes, the “Leverage Program”). Prior to being repaid on September 17, 2021, debt included $175.0 million in unsecured notes due August 2022 issued by the Company (the "2022 Notes"). Prior to being replaced by Funding Facility II on August 4, 2020, leverage included $300.0 million in available debt under a senior secured revolving credit facility issued by TCPC Funding (“Funding Facility I”). Prior to its maturity on December 15, 2019, leverage also included convertible senior unsecured notes due December 2019 issued by the Company (the “2019 Convertible Notes”).

To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements and timely distribute to our stockholders generally at least 90% of our investment company taxable income, as defined by the Internal Revenue Code of 1986, as amended, for each year. Pursuant to this election, we generally will not have to pay corporate level taxes on any income that we distribute to our stockholders provided that we satisfy those requirements.

Investments

Our level of investment activity can and does vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle-market companies, the level of merger and acquisition activity, the general economic environment and the competitive environment for the types of investments we make.

As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities and indebtedness of private U.S. companies, public U.S. operating companies whose securities are not listed on a national securities exchange or registered under the Securities Exchange Act of 1934, as amended, public domestic operating companies having a market capitalization of less than $250.0 million, cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. We are also permitted to make certain follow-on investments in companies that were eligible portfolio companies at the time of initial investment but that no longer meet the definition. As of September 30, 2021, 87.1% of our total assets were invested in qualifying assets.

Revenues

We generate revenues primarily in the form of interest on the debt we hold. We also generate revenue from dividends on our equity interests, capital gains on the disposition of investments, and certain lease, fee, and other income. Our investments in fixed income instruments generally have an expected maturity of three to five years, although we have no lower or upper constraint on maturity. Interest on our debt investments is generally payable quarterly or semi-annually. Payments of principal of our debt investments may be amortized over the stated term of the investment, deferred for several years or due entirely at maturity. In some cases, our debt investments and preferred stock investments may defer payments of cash interest or dividends or PIK. Any outstanding principal amount of our debt investments and any accrued but unpaid interest will generally become due at the maturity date. In addition, we may generate revenue in the form of prepayment fees, commitment, origination, structuring or due diligence fees, end-of-term or exit fees, fees for providing significant managerial assistance, consulting fees and other investment related income.

Expenses

Our primary operating expenses include the payment of a base management fee and, depending on our operating results, incentive compensation, expenses reimbursable under the management agreement, administration fees and the allocable portion of

54


 

overhead under the administration agreement. The base management fee and incentive compensation remunerates the Advisor for work in identifying, evaluating, negotiating, closing and monitoring our investments. Our administration agreement with the Administrator provides that the Administrator may be reimbursed for costs and expenses incurred by the Administrator for office space rental, office equipment and utilities allocable to us under the administration agreement, as well as any costs and expenses incurred by the Administrator or its affiliates relating to any non-investment advisory, administrative or operating services provided by the Administrator or its affiliates to us. We also bear all other costs and expenses of our operations and transactions (and the Company’s common stockholders indirectly bear all of the costs and expenses of the Company, SVCP, TCPC Funding and the SBIC), which may include those relating to:

 

our organization;

 

calculating our net asset value (including the cost and expenses of any independent valuation firms);

 

interest payable on debt, if any, incurred to finance our investments;

 

costs of future offerings of our common stock and other securities, if any;

 

the base management fee and any incentive compensation;

 

dividends and distributions on our preferred shares, if any, and common shares;

 

administration fees payable under the administration agreement;

 

fees payable to third parties relating to, or associated with, making investments;

 

transfer agent and custodial fees;

 

registration fees;

 

listing fees;

 

taxes;

 

director fees and expenses;

 

costs of preparing and filing reports or other documents with the SEC;

 

costs of any reports, proxy statements or other notices to our stockholders, including printing costs;

 

our fidelity bond;

 

directors and officers/errors and omissions liability insurance, and any other insurance premiums;

 

indemnification payments;

 

direct costs and expenses of administration, including audit and legal costs; and

 

all other expenses reasonably incurred by us and the Administrator in connection with administering our business, such as the allocable portion of overhead under the administration agreement, including rent and other allocable portions of the cost of certain of our officers and their respective staffs.

The investment management agreement provides that the base management fee be calculated at an annual rate of 1.5% of our total assets (excluding cash and cash equivalents) payable quarterly in arrears; provided, however, that, effective as of February 9, 2019, the base management fee is calculated at an annual rate of 1.0% of our total assets (excluding cash and cash equivalents) that exceed an amount equal to 200% of the net asset value of the Company. For purposes of calculating the base management fee, “total assets” is determined without deduction for any borrowings or other liabilities. The base management fee is calculated based on the value of our total assets and net asset value (excluding cash and cash equivalents) at the end of the most recently completed calendar quarter.

Additionally, the investment management agreement provides that the Advisor or its affiliates may be entitled to incentive compensation under certain circumstances. According to the terms of such agreement, no incentive compensation was incurred prior to January 1, 2013. Under the current investment management agreement, dated February 9, 2019, the incentive compensation equals the sum of (1) 20% of all ordinary income since January 1, 2013 through February 8, 2019 and 17.5% thereafter and (2) 20% of all net realized capital gains (net of any net unrealized capital depreciation) since January 1, 2013 through February 8, 2019 and 17.5% thereafter, less ordinary income incentive compensation and capital gains incentive compensation previously paid. However, incentive compensation will only be paid to the extent the cumulative total return of the Company after incentive compensation and including such payment would equal or exceed a 7% annual return on daily weighted-average contributed common equity. The determination of incentive compensation is subject to limitations under the 1940 Act and the Advisers Act.

55


 

Through December 31, 2017, the incentive compensation was an equity allocation to SVCP’s general partner under the LPA. Effective as of January 1, 2018, the LPA was amended to remove the incentive compensation distribution provisions therein, and the incentive compensation became payable as a fee to the Advisor pursuant to the then-existing investment management agreements. The amendment had no impact on the amount of the incentive compensation paid or services received by the Company.

Critical accounting policies

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ. Management considers the following critical accounting policies important to understanding the financial statements. In addition to the discussion below, our critical accounting policies are further described in the notes to our financial statements.

Valuation of portfolio investments

We value our portfolio investments at fair value based upon the principles and methods of valuation set forth in policies adopted by our board of directors. Fair value is defined as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. Market participants are buyers and sellers in the principal (or most advantageous) market for the asset that (i) are independent of us, (ii) are knowledgeable, having a reasonable understanding about the asset based on all available information (including information that might be obtained through due diligence efforts that are usual and customary), (iii) are able to transact for the asset, and (iv) are willing to transact for the asset or liability (that is, they are motivated but not forced or otherwise compelled to do so).

Investments for which market quotations are readily available are valued at such market quotations unless the quotations are deemed not to represent fair value. We generally obtain market quotations from recognized exchanges, market quotation systems, independent pricing services or one or more broker-dealers or market makers. However, short term debt investments with original maturities of generally three months or less are valued at amortized cost, which approximates fair value. Debt and equity securities for which market quotations are not readily available, which is the case for many of our investments, or for which market quotations are deemed not to represent fair value, are valued at fair value using a consistently applied valuation process in accordance with our documented valuation policy that has been reviewed and approved by our board of directors, who also approve in good faith the valuation of such securities as of the end of each quarter. Due to the inherent uncertainty and subjectivity of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and may differ materially from the values that we may ultimately realize. In addition, changes in the market environment and other events may have differing impacts on the market quotations used to value some of our investments than on the fair values of our investments for which market quotations are not readily available. Market quotations may be deemed not to represent fair value in certain circumstances where we believe that facts and circumstances applicable to an issuer, a seller or purchaser, or the market for a particular security cause current market quotations to not reflect the fair value of the security. Examples of these events could include cases where a security trades infrequently causing a quoted purchase or sale price to become stale, where there is a “forced” sale by a distressed seller, where market quotations vary substantially among market makers, or where there is a wide bid-ask spread or significant increase in the bid-ask spread.

The valuation process approved by our board of directors with respect to investments for which market quotations are not readily available or for which market quotations are deemed not to represent fair value is as follows:

 

The investment professionals of the Advisor provide recent portfolio company financial statements and other reporting materials to independent valuation firms approved by our board of directors.

 

Such firms evaluate this information along with relevant observable market data to conduct independent appraisals each quarter, and their preliminary valuation conclusions are documented and discussed with senior management of the Advisor.

 

The fair value of smaller investments comprising in the aggregate less than 5% of our total capitalization may be determined by the Advisor in good faith in accordance with our valuation policy without the employment of an independent valuation firm.

 

The audit committee of the board of directors discusses the valuations, and the board of directors approves the fair value of the investments in our portfolio in good faith based on the input of the Advisor, the respective independent valuation firms (to the extent applicable) and the audit committee of the board of directors.

56


 

Those investments for which market quotations are not readily available or for which market quotations are deemed not to represent fair value are valued utilizing one or more methodologies, including the market approach, the income approach, or in the case of recent investments, the cost approach, as appropriate. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). The income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). The measurement is based on the value indicated by current market expectations about those future amounts. In following these approaches, the types of factors that we may take into account in determining the fair value of our investments include, as relevant and among other factors: available current market data, including relevant and applicable market trading and transaction comparables, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons of financial ratios of peer companies that are public, merger and acquisition comparables, our principal market (as the reporting entity) and enterprise values.

When valuing all of our investments, we strive to maximize the use of observable inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of us. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances.

Our investments may be categorized based on the types of inputs used in their valuation. The level in the GAAP valuation hierarchy in which an investment falls is based on the lowest level input that is significant to the valuation of the investment in its entirety. Investments are classified by GAAP into the three broad levels as follows:

Level 1 — Investments valued using unadjusted quoted prices in active markets for identical assets.

Level 2 — Investments valued using other unadjusted observable market inputs, e.g. quoted prices in markets that are not active or quotes for comparable instruments.

Level 3 — Investments that are valued using quotes and other observable market data to the extent available, but which also take into consideration one or more unobservable inputs that are significant to the valuation taken as a whole.

As of September 30, 2021, 0.2% of our investments were categorized as Level 1, 2.4% were categorized as Level 2, 97.3% were Level 3 investments valued based on valuations by independent third-party sources, and 0.1% were Level 3 investments valued based on valuations by the Advisor.

As of December 31, 2020, 0.2% of our investments were categorized as Level 1, 4.1% were categorized as Level 2, 95.6% were Level 3 investments valued based on valuations by independent third-party sources, and 0.1% were Level 3 investments valued based on valuations by the Advisor.

Determination of fair value involves subjective judgments and estimates. Accordingly, the notes to our consolidated financial statements express the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on the financial statements.

Revenue recognition

Interest and dividend income, including income paid in kind, is recorded on an accrual basis, when such amounts are considered collectible. Origination, structuring, closing, commitment and other upfront fees, including original issue discounts, earned with respect to capital commitments are generally amortized or accreted into interest income over the life of the respective debt investment, as are end-of-term or exit fees receivable upon repayment of a debt investment. Other fees, including certain amendment fees, prepayment fees and commitment fees on broken deals, are recognized as earned. Prepayment fees and similar income due upon the early repayment of a loan or debt security are recognized when earned and are included in interest income.

Certain of our debt investments are purchased at a discount to par as a result of the underlying credit risks and financial results of the issuer, as well as general market factors that influence the financial markets as a whole. Discounts on the acquisition of corporate bonds are generally amortized using the effective-interest or constant-yield method assuming there are no questions as to collectability. When principal payments on a loan are received in an amount in excess of the loan’s amortized cost, the excess principal payments are recorded as interest income.

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Net realized gains or losses and net change in unrealized appreciation or depreciation

We measure realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Realized gains and losses are computed using the specific identification method. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.

Portfolio and investment activity

During the three months ended September 30, 2021, we invested approximately $156.9 million, comprised of new investments in 7 new and 9 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $150.0 million, or 95.6% of total acquisitions, were in senior secured loans, and $3.0 million, or 1.9% of total acquisitions, were in senior secured notes. The remaining $3.9 million (2.4% of total acquisitions) was comprised of equity investments, including $2.5 million in equity interest in a portfolio of lease assets. Additionally, we received approximately $227.2 million in proceeds from sales or repayments of investments during the three months ended September 30, 2021.

During the three months ended September 30, 2020, we invested approximately $78.6 million, comprised of new investments in 4 new and 4 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $75.0 million, or 95.4% of total acquisitions, were in senior secured debt comprised of senior secured loans ($74.5 million, or 94.7% of total acquisitions) and senior secured notes ($0.5 million, or 0.7% of total acquisitions). The remaining $3.6 million (4.6% of total acquisitions) was comprised primarily of $0.9 million in equity interests in portfolios of debt and lease assets and $2.7 million in equity positions received in connection with debt investments. Additionally, we received approximately $89.1 million in proceeds from sales or repayments of investments during the three months ended September 30, 2020.

During the nine months ended September 30, 2021, we invested approximately $575.1 million, comprised of new investments in 32 new and 18 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $558.1 million, or 97.0% of total acquisitions, were in senior secured loans, $3.0 million, or 0.5% of total acquisitions, were in senior secured notes. $6.5 million, or 1.1% of total acquisitions, were in unsecured notes. The remaining $7.5 million (1.3% of total acquisitions) was comprised of equity investments, including $2.5 million in equity interest in a portfolio of lease assets. Additionally, we received approximately $507.5 million in proceeds from sales or repayments of investments during the nine months ended September 30, 2021.

During the nine months ended September 30, 2020, we invested approximately $277.6 million, comprised of new investments in 12 new and 14 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, $262.2 million, or 94.4% of total acquisitions, were in senior secured debt comprised of senior secured loans ($241.7 million, or 87.0% of total acquisitions) and senior secured notes ($20.5 million, or 7.4% of total acquisitions). $4.2 million, or 1.5% of total acquisitions, were in unsecured notes. The remaining $11.3 million (4.1% of total acquisitions) was comprised of equity investments, including $4.9 million in equity interests in portfolios of debt and lease assets and $6.4 million in equity positions received in connection with debt investments. Additionally, we received approximately $267.8 million in proceeds from sales or repayments of investments during the nine months ended September 30, 2020.

At September 30, 2021, our investment portfolio of $1,757.4 million (at fair value) consisted of 106 portfolio companies and was invested 90.0% in debt investments, primarily in senior secured debt. In aggregate, our investment portfolio was invested 84.2% in senior secured loans, 5.5% in senior secured notes, 0.3% in junior notes and 10.0% in equity investments. Our average portfolio company investment at fair value was approximately $16.6 million. Our largest portfolio company investment by value was approximately 4.3% of our portfolio and our five largest portfolio company investments by value comprised approximately 17.6% of our portfolio at September 30, 2021.

At December 31, 2020, our investment portfolio of $1,629.6 million (at fair value) consisted of 96 portfolio companies and was invested 88.7% in debt investments, primarily in senior secured debt. In aggregate, our investment portfolio was invested 82.8% in senior secured loans, 5.9% in senior secured notes and 11.3% in equity investments. Our average portfolio company investment at fair value was approximately $17.0 million. Our largest portfolio company investment by value was approximately 4.5% of our portfolio and our five largest portfolio company investments by value comprised approximately 18.0% of our portfolio at December 31, 2020.

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The industry composition of our portfolio at fair value at September 30, 2021 was as follows:

 

Industry

 

Percent of

Total

Investments

 

Internet Software and Services

 

 

16.3

%

Diversified Financial Services

 

 

11.9

%

Diversified Consumer Services

 

 

9.9

%

Professional Services

 

 

7.7

%

Software

 

 

7.6

%

Textiles, Apparel and Luxury Goods

 

 

5.4

%

Automobiles

 

 

3.8

%

Media

 

 

3.6

%

Health Care Technology

 

 

3.6

%

IT Services

 

 

2.5

%

Diversified Telecommunication Services

 

 

2.4

%

Insurance

 

 

2.2

%

Healthcare Providers and Services

 

 

2.1

%

Airlines

 

 

2.0

%

Internet and Catalog Retail

 

 

1.8

%

Road and Rail

 

 

1.7

%

Consumer Finance

 

 

1.6

%

Hotels, Restaurants and Leisure

 

 

1.6

%

Aerospace and Defense

 

 

1.6

%

Specialty Retail

 

 

1.6

%

Tobacco Related

 

 

1.5

%

Capital Markets

 

 

1.4

%

Construction and Engineering

 

 

1.2

%

Personal Products

 

 

1.1

%

Other

 

 

3.9

%

Total

 

 

100.0

%

 

 

 

 

 

 

The weighted average effective yield of our debt portfolio was 9.4% at September 30, 2021 and 9.6% at December 31, 2020. The weighted average effective yield of our total portfolio was 8.8% at September 30, 2021 and 9.2% at December 31, 2020. At September 30, 2021, 94.1% of debt investments in our portfolio bore interest based on floating rates, such as LIBOR, EURIBOR, the Federal Funds Rate or the Prime Rate, and 5.9% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 90.3% at September 30, 2021. Debt investments in three portfolio companies were on non-accrual status as of September 30, 2021, representing 1.0% of the portfolio at fair value and 1.8% at cost. At December 31, 2020, 95.4% of debt investments in our portfolio bore interest based on floating rates, such as LIBOR, EURIBOR, the Federal Funds Rate or the Prime Rate, and 4.6% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 79.7% at December 31, 2020. Debt investments in three portfolio companies were on non-accrual status as of December 31, 2020, representing 0.5% of the portfolio at fair value and 1.2% at cost.

Results of operations

Investment income

Investment income totaled $42.7 million and $42.8 million, respectively, for the three months ended September 30, 2021 and 2020, of which $40.5 million and $39.8 million were attributable to interest and fees on our debt investments, $1.9 million and $1.3 million to dividend income and $0.3 million and $1.7 million to other income, respectively. Included in interest and fees on our debt investments were $3.2 million and $1.8 million of non-recurring income related to prepayments for the three months ended September 30, 2021 and 2020, respectively. Included in other income were $0.0 and $1.7 million in amendment fees during the three months ended September 30, 2021 and 2020, respectively. The decrease in investment income for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 primarily reflects a decrease in other income received partially offset by the higher dividend income during the three months ended September 30, 2021.

59


 

Investment income totaled $125.5 million and $129.2 million, respectively, for the nine months ended September 30, 2021 and 2020, of which $117.1 million and $120.8 million were attributable to interest and fees on our debt investments, $6.9 million and $2.0 million to dividend income and $1.5 million and $6.4 million to other income, respectively. Included in interest and fees on our debt investments were $5.9 million and $3.1 million of non-recurring income related to prepayments for the nine months ended September 30, 2021 and 2020, respectively. Included in other income were $0.9 million fee income and $5.5 million in amendment fees during the nine months ended September 30, 2021 and 2020, respectively. The decrease in investment income for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 primarily reflects a decrease in interest income due to the decline in LIBOR rates and lower other income received partially offset by the higher dividend income during the nine months ended September 30, 2021.

Expenses

 

Total operating expenses for the three months ended September 30, 2021 and 2020 were $24.0 million and $22.7 million, respectively, comprised of $10.5 million and $9.7 million in interest expense and related fees, $6.8 million and $5.9 million in base management fees, $4.7 million and $5.0 million in incentive fee expense, $0.4 million and $0.5 million in administrative expenses, $0.5 million and $0.4 million in professional fees, and $1.1 million and $1.2 million in other expenses, respectively. The increase in expenses for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 reflects the higher interest expense and base management fees, partially offset by the lower incentive fees.

 

Total operating expenses for the nine months ended September 30, 2021 and 2020 were $70.6 million and $66.0 million, respectively, comprised of $31.3 million and $31.3 million in interest expense and related fees, $19.1 million and $17.8 million in base management and advisory fees, $14.0 million and $10.3 million in incentive fee expense, $1.4 million and $1.6 million in administrative expenses, $1.4 million and $1.4 million in professional fees, and $3.4 million and $3.6 million in other expenses, respectively. The increase in expenses for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 primarily reflects the deferral of incentive fees related to the first quarter of 2020 and the increase in base management fees.

Net investment income

 

Net investment income was $18.7 million and $20.1 million, respectively, for the three months ended September 30, 2021 and 2020. The decrease in net investment income for the three months ended September 30, 2021 compared to the three months ended September 30, 2020 primarily reflects the higher expenses for the three months ended September 30, 2021.

 

Net investment income was $54.9 million and $63.2 million, respectively, for the nine months ended September 30, 2021 and 2020. The decrease in net investment income for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2021 primarily reflects lower investment income and the higher expenses as a result of the incentive fee deferral.

Net realized and unrealized gain or loss

 

Net realized gain (loss) for the three months ended September 30, 2021 and 2020 was $7.9 million and $(18.0) million, respectively. Net realized gains for the three months ended September 30, 2021 reflect a $5.1 million gain on the partial sale of our equity investment in Edmentum.  The net realized loss for the three months ended September 30, 2020 was comprised primarily of the restructuring of AGY.

   

Net realized gain (loss) for the nine months ended September 30, 2021 and 2020 was $10.8 million and $(13.5) million, respectively. Net realized gain for the nine months ended September 30, 2021 was comprised primarily of a $8.8 million gain from the disposition of our One Sky equity position and a $6.1 million gain on the partial sale of our equity investment in Edmentum, partially offset by a $7.1 million loss from the disposition of our debt investment in GlassPoint. Net realized loss for the nine months ended September 30, 2020 was comprised primarily of the restructuring of our investment in AGY, partially offset by a $4.9 million gain on the disposition of our investment in STG Fairway (First Advantage), exclusive of prepayment income earned.

 

For the three months ended September 30, 2021 and 2020, the change in net unrealized appreciation/depreciation was $(9.5) million and $46.8 million, respectively. The change in net unrealized appreciation/depreciation for the three months ended September 30, 2021 was primarily driven by a $6.8 million reversal of previous unrealized gains on Edmentum and $3.7 million in unrealized losses on Hylan Datacom, partially offset by $5.1 million in unrealized gains from Razor Group. The change in net unrealized appreciation/depreciation for the three months ended September 30, 2020 was primarily driven by continued spread

60


 

tightening during the three months ended September 30, 2020 following the dramatic spread widening and volatility during the first quarter of 2020 related to the market impact of COVID-19 and the partial recovery during the second quarter.

 

 

For the nine months ended September 30, 2021 and 2020, the change in net unrealized appreciation/depreciation was $41.7 million and $(24.0) million, respectively. The change in net unrealized appreciation/depreciation for the nine months ended September 30, 2021 was primarily driven by $40.0 million in unrealized gains on our investment in Edmentum, a $5.7 million reversal of previously recognized unrealized losses on GlassPoint and overall spread tightening and continued recovery related to the market impact of COVID-19, partially offset by a $10.9 million reversal of previously recognized unrealized gains on One Sky and $9.1 million in unrealized losses from Amteck. The change in net unrealized appreciation/depreciation for the nine months ended September 30, 2020 was primarily driven by net spread widening and volatility across our portfolio related to the market impact of COVID-19, partially offset by an unrealized gain of $4.5 million on our investment in Domo and a gain of $5.1 million on our investment in Amteck.

 

Incentive compensation

Incentive fees for the three months ended September 30, 2021 and 2020 were $4.7 million and $5.0 million, respectively, and for the nine months ended September 30, 2021 and 2020 were $14.0 million and $10.3 million, respectively. For the three and nine months ended September 30, 2021 and 2020, incentive fees were payable due to our performance exceeding the cumulative total return threshold. Because our incentive compensation is computed on a cumulative basis, the incentive compensation for any period may include amounts not earned in prior periods (due to our cumulative total return falling below the total return hurdle in such period), but subsequently earned when our cumulative total return again exceeds the total return hurdle (such amount, a “Catchup Amount”). Due to portfolio volatility related to the market impact of COVID-19, $3.9 million of incentive fees related to net investment income for the first quarter of 2020 were deferred (the “First Quarter 2020 Catchup Amount”) and subsequently earned when our performance again exceeded the cumulative total return hurdle during the second quarter of 2020. However, rather than receiving all incentive compensation earned as of June 30, 2020, the Advisor voluntarily deferred 5/6 of the First Quarter Catchup Amount to subsequent quarters such that 1/6 of the First Quarter Catchup Amount would be paid in each subsequent quarter to the extent that the Company’s cumulative performance exceeds the cumulative total return hurdle in such quarter. Accordingly, incentive fees for the three and nine months ended September 30, 2021 included $0.6 million (1/6) of the First Quarter 2020 Catchup Amount and $1.8 million (3/6) of the First Quarter 2020 Catchup Amount, respectively.

Income tax expense, including excise tax

The Company has elected to be treated as a RIC under Subchapter M of the Internal Revenue Code (the "Code”) and operates in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, the Company must, among other things, timely distribute to its stockholders generally at least 90% of its investment company taxable income, as defined by the Code, for each year. The Company has made and intends to continue to make the requisite distributions to its stockholders which will generally relieve the Company from U.S. federal income taxes.

Depending on the level of taxable income earned in a tax year, we may choose to carry forward taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income. Any excise tax expense is recorded at year end as such amounts are known. No excise tax was incurred for the nine months ended September 30, 2021 and 2020.

Net increase in net assets resulting from operations

 

The net increase in net assets applicable to common shareholders resulting from operations was $10.9 million and $46.5 million for the three months ended September 30, 2021 and 2020, respectively. The lower net increase in net assets resulting from operations during the three months ended September 30, 2021 was primarily due to the lower change in unrealized gains during the three months ended September 30, 2021 compared to the change in unrealized gains during the three months ended September 30, 2020.

 

The net increase in net assets applicable to common shareholders resulting from operations was $101.2 million and $23.4 million for the nine months ended September 30, 2021 and 2020, respectively. The higher net increase in net assets resulting from operations during the nine months ended September 30, 2021 was primarily due to the net realized and unrealized gains during the nine months

61


 

ended September 30, 2021 compared to the net realized and unrealized losses in the same period in 2020, partially offset by the lower net investment income during the nine months ended September 30, 2021.

Liquidity and capital resources

Since our inception, our liquidity and capital resources have been generated primarily through the initial private placement of common shares of Special Value Continuation Fund, LLC (the predecessor entity) which were subsequently converted to common stock of the Company, the net proceeds from the initial and secondary public offerings of our common stock, amounts outstanding under our Leverage Program, and cash flows from operations, including investments sales and repayments and income earned from investments and cash equivalents. The primary uses of cash have been investments in portfolio companies, cash distributions to our equity holders, payments to service our Leverage Program and other general corporate purposes.

Prior to its discontinuance effective July 7, 2020, we had offered an “opt in” dividend reinvestment plan to our common stockholders, pursuant to which the dividends payable to those shareholders who so elected would be reinvested in shares of common stock. The following table summarizes the total shares issued and proceeds received in connection with the Company’s dividend reinvestment plan for the nine months ended September 30, 2020:

 

 

 

 

 

2020

 

Shares Issued

 

 

 

 

838

 

Average Price Per Share

 

 

 

$

7.46

 

Proceeds

 

 

 

$

6,253

 

 

On February 24, 2015, the Company’s board of directors approved a stock repurchase plan (the “Company Repurchase Plan”) to acquire up to $50.0 million in the aggregate of the Company’s common stock at prices at certain thresholds below the Company’s net asset value per share, in accordance with the guidelines specified in Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934. The Company Repurchase Plan is designed to allow the Company to repurchase its common stock at times when it otherwise might be prevented from doing so under insider trading laws. The Company Repurchase Plan requires an agent selected by the Company to repurchase shares of common stock on the Company’s behalf if and when the market price per share is at certain thresholds below the most recently reported net asset value per share. Under the plan, the agent will increase the volume of purchases made if the price of the Company’s common stock declines, subject to volume restrictions. The timing and amount of any stock repurchased depends on the terms and conditions of the Company Repurchase Plan, the market price of the common stock and trading volumes, and no assurance can be given that any particular amount of common stock will be repurchased. The Company Repurchase Plan was re-approved on October 28, 2021, to be in effect through the earlier of two trading days after our fourth quarter 2021 earnings release, unless further extended or terminated by our board of directors, or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions. The following table summarizes the total shares repurchased and amounts paid by the Company under the Company Repurchase Plan, including broker fees, for the nine months ended September 30, 2021 and 2020:

 

 

 

Nine months ended September 30,

 

 

 

2021

 

2020

 

Shares Repurchased

 

N/A

 

 

1,000,000

 

Price Per Share *

 

N/A

 

$

6.10

 

Total Cost

 

N/A

 

$

6,100,190

 

 

*

Weighted-average price per share

62


 

Total leverage outstanding and available under the combined Leverage Program at September 30, 2021 were as follows:

 

 

 

Maturity

 

Rate

 

 

Carrying

Value (1)

 

 

Available

 

 

Total

Capacity

 

 

Operating Facility

 

2026

 

L+1.75%

(2)

 

$

120,592,742

 

 

$

179,407,258

 

 

$

300,000,000

 

(3)

Funding Facility II

 

2025

 

L+2.00%

(4)

 

 

 

 

 

200,000,000

 

 

 

200,000,000

 

(5)

SBA Debentures

 

2024−2031

 

2.52%

(6)

 

 

150,000,000

 

 

 

 

 

 

150,000,000

 

 

2022 Convertible Notes ($140 million par)

 

2022

 

4.625%

 

 

 

139,717,275

 

 

 

 

 

 

139,717,275

 

 

2024 Notes ($250 million par)

 

2024

 

3.900%

 

 

 

248,283,127

 

 

 

 

 

 

248,283,127

 

 

2026 Notes ($325 million par)

 

2026

 

2.850%

 

 

 

326,642,360

 

 

 

 

 

 

326,642,360

 

 

Total leverage

 

 

 

 

 

 

 

985,235,504

 

 

$

379,407,258

 

 

$

1,364,642,762

 

 

Unamortized issuance costs

 

 

 

 

 

 

 

(7,393,385

)

 

 

 

 

 

 

 

 

 

Debt, net of unamortized issuance costs

 

 

 

 

 

 

$

977,842,119

 

 

 

 

 

 

 

 

 

 

 

(1)

Except for the convertible notes, the 2024 Notes and the 2026 Notes, all carrying values are the same as the principal amounts outstanding.

(2)

As of September 30, 2021, $8.8 million of the outstanding amount bore interest at a rate of EURIBOR + 2.00%.

(3)

Facility has a $100 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

(5)

Facility has a $50 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%.

Under Section 61(a) of the 1940 Act, prior to March 23, 2018, a BDC was generally not permitted to issue senior securities unless after giving effect thereto the BDC met a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities, which includes all borrowings of the BDC, of at least 200%. On March 23, 2018, the Small Business Credit Availability Act (“SBCAA”) was signed into law, which among other things, amended Section 61(a) of the 1940 Act to add a new Section 61(a)(2) that reduces the asset coverage requirement applicable to BDCs from 200% to 150% so long as the BDC meets certain disclosure requirements and obtains certain approvals. The reduced asset coverage requirement would permit a BDC to have a ratio of total consolidated assets to outstanding indebtedness of 2:1 as compared to a maximum of 1:1 under the 200% asset coverage requirement.

Effective November 7, 2018, the Company’s board of directors, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of our board of directors, approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the SBCAA (the “Asset Coverage Ratio Election”), which would have resulted (had the Company not received earlier stockholder approval) in our asset coverage requirement applicable to senior securities being reduced from 200% to 150%, effective on November 7, 2019.  On February 8, 2019, the stockholders of the Company approved the Asset Coverage Ratio Election, and, as a result, effective on February 9, 2019, our asset coverage requirement applicable to senior securities was reduced from 200% to 150%. As of September 30, 2021, the Company’s asset coverage ratio was 198%.

On July 13, 2015, we obtained exemptive relief from the SEC to permit us to exclude debt outstanding under the SBA Debentures from our asset coverage test under the 1940 Act. The exemptive relief provides us with increased flexibility under the 150% asset coverage test by permitting the SBIC to borrow up to $150.0 million more than it would otherwise be able to absent the receipt of this exemptive relief.

Net cash used in operating activities during the nine months ended September 30, 2021 was $49.3 million, consisting primarily of the settlement of acquisitions of investments (net of dispositions) of $64.1 million, offset by net investment income (net of non-cash income and expenses) of approximately $14.8 million.

Net cash provided by financing activities was $65.8 million during the nine months ended September 30, 2021, consisting primarily of $326.6 million in net proceeds from the issuance of unsecured debt, offset by $180.7 million in repayment of unsecured notes, $52.0 million in dividends paid to common shareholders, $23.9 million in net repayments of credit facility draws and $4.2 million in payments of debt issuance costs.

At September 30, 2021, we had $36.6 million in cash and cash equivalents.

63


 

The Operating Facility and Funding Facility II are secured by substantially all of the assets in our portfolio, including cash and cash equivalents, and are subject to compliance with customary affirmative and negative covenants, including the maintenance of a minimum shareholders’ equity, the maintenance of a ratio of not less than 150% of total assets (less total liabilities other than indebtedness) to total indebtedness, and restrictions on certain payments and issuance of debt. Unfavorable economic conditions may result in a decrease in the value of our investments, which would affect both the asset coverage ratios and the value of the collateral securing the Operating Facility and Funding Facility II, and may therefore impact our ability to borrow under the Operating Facility and Funding Facility II. In addition to regulatory restrictions that restrict our ability to raise capital, the Leverage Program contains various covenants which, if not complied with, could accelerate repayment of debt, thereby materially and adversely affecting our liquidity, financial condition and results of operations. At September 30, 2021, we were in compliance with all financial and operational covenants required by the Leverage Program.

Unfavorable economic conditions, such as those caused by COVID-19, while potentially creating attractive opportunities for us, may decrease liquidity and raise the cost of capital generally, which could limit our ability to renew, extend or replace the Leverage Program on terms as favorable as are currently included therein. If we are unable to renew, extend or replace the Leverage Program upon the various dates of maturity, we expect to have sufficient funds to repay the outstanding balances in full from our net investment income and sales of, and repayments of principal from, our portfolio company investments, as well as from anticipated debt and equity capital raises, among other sources. Unfavorable economic conditions may limit our ability to raise capital or the ability of the companies in which we invest to repay our loans or engage in a liquidity event, such as a sale, recapitalization or initial public offering. The 2022 Convertible Notes, the Operating Facility, Funding Facility II, the 2024 Notes and the 2026 Notes, mature in March 2022, May 2026, August 2025, August 2024 and February 2026, respectively. Any inability to renew, extend or replace the Leverage Program could adversely impact our liquidity and ability to find new investments or maintain distributions to our stockholders.

Challenges in the market are intensified for us by certain regulatory limitations under the Code and the 1940 Act. To maintain our qualification as a RIC, we must satisfy, among other requirements, an annual distribution requirement to pay out at least 90% of our ordinary income and short-term capital gains to our stockholders. Because we are required to distribute our income in this manner, and because the illiquidity of many of our investments may make it difficult for us to finance new investments through the sale of current investments, our ability to make new investments is highly dependent upon external financing. While we anticipate being able to continue to satisfy all covenants and repay the outstanding balances under the Leverage Program when due, there can be no assurance that we will be able to do so, which could lead to an event of default.

Contractual obligations

In addition to obligations under our Leverage Program, we have entered into several contracts under which we have future commitments. Pursuant to an investment management agreement, the Advisor manages our day-to-day operations and provides investment advisory services to us. Payments under the investment management agreement are equal to a percentage of the value of our total assets (excluding cash and cash equivalents) and an incentive compensation, plus reimbursement of certain expenses incurred by the Advisor. Under our administration agreement, the Administrator provides us with administrative services, facilities and personnel. Payments under the administration agreement are equal to an allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations to us and may include rent and our allocable portion of the cost of certain of our officers and their respective staffs. We are responsible for reimbursing the Advisor for due diligence and negotiation expenses, fees and expenses of custodians, administrators, transfer and distribution agents, counsel and directors, insurance, filings and registrations, proxy expenses, expenses of communications to investors, compliance expenses, interest, taxes, portfolio transaction expenses, costs of responding to regulatory inquiries and reporting to regulatory authorities, costs and expenses of preparing and maintaining our books and records, indemnification, litigation and other extraordinary expenses and such other expenses as are approved by the directors as being reasonably related to our organization, offering, capitalization, operation or administration and any portfolio investments, as applicable. The Advisor is not responsible for any of the foregoing expenses and such services are not investment advisory services under the 1940 Act. Either party may terminate each of the investment management agreement and administration agreement without penalty upon not less than 60 days’ written notice to the other.

Distributions

Our quarterly dividends and distributions to common stockholders are recorded on the ex-dividend date. Distributions are declared considering our estimate of annual taxable income available for distribution to stockholders and the amount of taxable income carried over from the prior year for distribution in the current year. We do not have a policy to pay distributions at a specific level and expect to continue to distribute substantially all of our taxable income. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.

64


 

The following tables summarize dividends declared for the nine months ended September 30, 2021 and 2020:

 

Date Declared

 

Record Date

 

Payment Date

 

Type

 

Amount

Per

Share

 

 

Total Amount

 

February 25, 2021

 

March 17, 2021

 

March 31, 2021

 

Regular

 

$

0.30

 

 

$

17,330,179

 

May 5, 2021

 

June 17, 2021

 

June 30, 2021

 

Regular

 

 

0.30

 

 

 

17,330,179

 

August 2, 2021

 

September 16, 2021

 

September 30, 2021

 

Regular

 

 

0.30

 

 

 

17,330,179

 

 

 

 

 

 

 

 

 

$

0.90

 

 

$

51,990,537

 

 

Date Declared

 

Record Date

 

Payment Date

 

Type

 

Amount

Per

Share

 

 

Total Amount

 

February 26, 2020

 

March 17, 2020

 

March 31, 2020

 

Regular

 

$

0.36

 

 

$

21,155,913

 

May 11, 2020

 

June 16, 2020

 

June 30, 2020

 

Regular

 

 

0.36

 

 

 

20,796,088

 

August 6, 2020

 

September 16, 2020

 

September30, 2020

 

Regular

 

 

0.30

 

 

 

17,330,179

 

 

 

 

 

 

 

 

 

$

1.02

 

 

$

59,282,180

 

 

 

We have elected to be taxed as a RIC under Subchapter M of the Code. In order to maintain favorable RIC tax treatment, we must distribute annually to our stockholders at least 90% of our ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any, out of the assets legally available for distribution. In order to avoid certain excise taxes imposed on RICs, we must distribute during each calendar year an amount at least equal to the sum of:

 

98% of our ordinary income (not taking into account any capital gains or losses) for the calendar year;

 

98.2% of the amount by which our capital gains exceed our capital losses (adjusted for certain ordinary losses) for the one-year period generally ending on October 31 of the calendar year; and

 

certain undistributed amounts from previous years on which we paid no U.S. federal income tax.

We may, at our discretion, carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. If we choose to do so, all other things being equal, this would increase expenses and reduce the amounts available to be distributed to our stockholders. We will accrue excise tax on estimated taxable income as required. In addition, although we currently intend to distribute realized net capital gains (i.e., net long-term capital gains in excess of short-term capital losses), if any, at least annually, out of the assets legally available for such distributions, we may in the future decide to retain such capital gains for investment.

We may not be able to achieve operating results that will allow us to make dividends and distributions at a specific level or to increase the amount of these dividends and distributions from time to time. Also, we may be limited in our ability to make dividends and distributions due to the asset coverage test applicable to us as a BDC under the 1940 Act and due to provisions in our existing and future credit facilities. If we do not distribute a certain percentage of our income annually, we will suffer adverse tax consequences, including possible loss of favorable RIC tax treatment. In addition, in accordance with U.S. generally accepted accounting principles and tax regulations, we include in income certain amounts that we have not yet received in cash, such as PIK interest, which represents contractual interest added to the loan balance that becomes due at the end of the loan term, or the accrual of original issue or market discount. Since we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the requirement to distribute at least 90% of our investment company taxable income to obtain tax benefits as a RIC and may be subject to an excise tax.

In order to satisfy the annual distribution requirement applicable to RICs, we have the ability to declare a large portion of a dividend in shares of our common stock instead of in cash. As long as a portion of such dividend is paid in cash and certain requirements are met, the entire distribution would be treated as a dividend for U.S. federal income tax purposes.

Related Parties

We have entered into a number of business relationships with affiliated or related parties, including the following:

 

Each of the Company, TCPC Funding, and the SBIC has entered into an investment management agreement with the Advisor.

65


 

 

The Administrator provides us with administrative services necessary to conduct our day-to-day operations. For providing these services, facilities and personnel, the Administrator may be reimbursed by us for expenses incurred by the Administrator in performing its obligations under the administration agreement, including our allocable portion of the cost of certain of our officers and the Administrator’s administrative staff and providing, at our request and on our behalf, significant managerial assistance to our portfolio companies to which we are required to provide such assistance. The Administrator is an affiliate of the Advisor and certain other series and classes of SVOF/MM, LLC serve as the general partner or managing member of certain other funds managed by the Advisor.

 

We have entered into a royalty-free license agreement with BlackRock and the Advisor, pursuant to which each of BlackRock and the Advisor has agreed to grant us a non-exclusive, royalty-free license to use the name "BlackRock" and "TCP."

The Advisor and its affiliates, employees and associates currently do and in the future may manage other funds and accounts. The Advisor and its affiliates may determine that an investment is appropriate for us and for one or more of those other funds or accounts. Accordingly, conflicts may arise regarding the allocation of investments or opportunities among us and those accounts. In general, the Advisor will allocate investment opportunities pro rata among us and the other funds and accounts (assuming the investment satisfies the objectives of each) based on the amount of committed capital each then has available. The allocation of certain investment opportunities in private placements is subject to independent director approval pursuant to the terms of the co-investment exemptive order applicable to us. In certain cases, investment opportunities may be made other than on a pro rata basis. For example, we may desire to retain an asset at the same time that one or more other funds or accounts desire to sell it or we may not have additional capital to invest at a time the other funds or accounts do. If the Advisor is unable to manage our investments effectively, we may be unable to achieve our investment objective. In addition, the Advisor may face conflicts in allocating investment opportunities between us and certain other entities that could impact our investment returns. While our ability to enter into transactions with our affiliates is restricted under the 1940 Act, we have received an exemptive order from the SEC permitting certain affiliated investments subject to certain conditions. As a result, we may face conflict of interests and investments made pursuant to the exemptive order conditions which could in certain circumstances affect adversely the price paid or received by us or the availability or size of the position purchased or sold by us.

Recent Developments

From October 1, 2021 through November 2, 2021, the Company has invested approximately $32.0 million primarily in two senior secured loans with a combined effective yield of approximately 10.0%.

On October 28, 2021, the Company’s board of directors re-approved the Company Repurchase Plan, to be in effect through the earlier of two trading days after the Company’s fourth quarter 2021 earnings release or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions.

On October 28, 2021, the Company’s board of directors established the role of Lead Independent Director, and elected Eric Draut to serve in this role. Mr. Draut has served on the Company’s board of directors since 2011 and had recently served as Chair of the Audit Committee. In conjunction with the establishment of a Lead Independent Director and Mr. Draut’s appointment, the board also appointed existing board members Peter Schwab and Freddie Reiss as Chair of the Governance and Compensation Committee and Chair of the Audit Committee, respectively.

On November 3, 2021, the Company’s board of directors declared a fourth quarter dividend of $0.30 per share payable on December 31, 2021 to stockholders of record as of the close of business on December 17, 2021.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. At September 30, 2021, 94.1% of debt investments in our portfolio bore interest based on floating rates, such as LIBOR, EURIBOR, the Federal Funds Rate or the Prime Rate. The interest rates on such investments generally reset by reference to the current market index after one to six months. At September 30, 2021, the percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 90.3%. Floating rate investments subject to a floor generally reset by reference to the current market index after one to six months only if the index exceeds the floor.

Interest rate sensitivity refers to the change in earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. We assess our portfolio companies periodically to determine whether

66


 

such companies will be able to continue making interest payments in the event that interest rates increase. There can be no assurances that the portfolio companies will be able to meet their contractual obligations at any or all levels of increases in interest rates.

Based on our September 30, 2021 statement of assets and liabilities, the following table shows the annual impact on net investment income (excluding the related incentive compensation impact) of base rate changes in interest rates (considering interest rate floors for variable rate instruments and the fact that our assets and liabilities may not have the same base rate period as assumed in this table) assuming no changes in our investment and borrowing structure:

 

Basis Point Change

 

Net Investment

Income

 

 

Net Investment

Income Per Share

 

Basis Point Change

 

 

 

 

 

 

 

 

Up 300 basis points

 

$

27,458,010

 

 

$

0.48

 

Up 200 basis points

 

 

13,769,013

 

 

 

0.24

 

Up 100 basis points

 

 

1,572,198

 

 

 

0.03

 

Down 100 basis points

 

 

(18,807

)

 

 

(0.00

)

Down 200 basis points

 

 

(18,807

)

 

 

(0.00

)

Down 300 basis points

 

 

(18,807

)

 

 

(0.00

)

 

 

 

Item 4. Controls and Procedures

 

As of the period covered by this report, we, including our chief executive officer and chief financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on our evaluation, our management, including the chief executive officer and chief financial officer, concluded that our disclosure controls and procedures were effective in timely alerting management, including the chief executive officer and chief financial officer, of material information about us required to be included in our periodic SEC filings. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, are based upon certain assumptions about the likelihood of future events and can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. There has not been any change in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting. The Company is continually monitoring and assessing the COVID-19 situation to determine any potential impact on the design and operating effectiveness of our internal control over financial reporting.

 

 

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PART II - Other Information.

Item 1.

Legal Proceedings

Although we may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise, as of September 30, 2021, we are currently not a party to any pending material legal proceedings.

Item 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed in our most recent annual report on Form 10-K, as filed with the Securities and Exchange Commission on February 25, 2021, except as below.

 

A cyber-attack or a failure to implement effective information and cybersecurity policies, procedures and capabilities could disrupt operations and cause financial losses that may have a material adverse effect on our or a portfolio company's business, results of operations and financial condition.

 

We are dependent on the effectiveness of the information and cybersecurity policies, procedures and capabilities maintained by our Advisor and other service providers to protect their computer and telecommunications systems and the data that reside on or are transmitted through them. Our portfolio companies similarly are dependent on the effectiveness of the information and cybersecurity policies that they and their service providers maintain. An externally caused information security incident, such as a hacker attack, ransomware attack, virus, phishing scam or worm, or an internally caused issue, such as failure to control access to sensitive systems, could materially interrupt business operations or cause disclosure or modification of sensitive or confidential or competitive information. Moreover, the increased use of mobile and cloud technologies could heighten these and other operational risks as certain aspects of the security of such technologies may be complex and unpredictable. Reliance on mobile or cloud technology or any failure by mobile technology and cloud service providers to adequately safeguard their systems and prevent cyber-attacks could disrupt our operations, the operations of a portfolio company or the operations of our or their service providers and result in misappropriation, corruption or loss of personal, confidential or proprietary information or the inability to conduct ordinary business operations. In addition, there is a risk that encryption and other protective measures may be circumvented, particularly to the extent that new computing technologies increase the speed and computing power available.

  

There have been a number of recent highly publicized cases of companies reporting the unauthorized disclosure of client or customer information, as well as cyber-attacks involving the dissemination, theft and destruction of corporate information or other assets, as a result of failure to follow procedures by employees or contractors or as a result of actions by third parties, including actions by terrorist organizations and hostile foreign governments.

 

Our Advisor has been the target of attempted cyber-attacks, as well as the co-opting of its brand to create fraudulent websites, and must continuously monitor and develop its systems to protect its technology infrastructure and data from misappropriation or corruption, as the failure to do so could disrupt our Advisor’s operations and cause financial losses. Although our Advisor takes protective measures and endeavors to strengthen its computer systems, software, technology assets and networks to prevent and address potential cyber-attacks, there can be no assurance that any of these measures prove effective. Moreover, due to the complexity and interconnectedness of our Advisor’s systems, the process of upgrading or patching our Advisor’s protective measures could itself create a risk of security issues or system disruptions for the Company, as well as for external stakeholders who rely upon, or have exposure to, our Advisor’s systems.

 

In addition, due to our Advisor’s and other service providers’ interconnectivity with third-party vendors, central agents, exchanges, clearing houses and other financial institutions, our Advisor and other service providers may be adversely affected if any of them are subject to a successful cyber-attack or other information security event, including those arising due to the use of mobile and cloud technologies.

 

Our Advisor and other service providers also routinely transmit and receive personal, confidential or proprietary information by email and other electronic means. Our Advisor and other service providers collaborate with clients, vendors and other third parties to develop secure transmission capabilities and protect against cyber-attacks. However, our Advisor or our other service providers cannot ensure that they or such third parties have all appropriate controls in place to protect the confidentiality of such information.

 

Our portfolio companies also have been the target of cyber-attacks, including ransomware attacks, that have affected their ability to conduct ordinary business operations or may subject them to liability to third-party suppliers, vendors or customers.  Such cyber-attacks may materially and adversely affect their business results and the value of our investment in them.

 

Any information security incident or cyber-attack against our Advisor, our other service providers or third parties with whom they are connected or our portfolio companies, including any theft, interception, mishandling or misuse of personal, confidential or

68


 

proprietary corporate information or other assets, could result in material financial loss, loss of competitive position, regulatory fines and/or sanctions, breach of client contracts, reputational harm or legal liability, which, in turn, may have a material adverse effect on our business, results of operations and financial condition.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

None

Item 3.

Defaults Upon Senior Securities.

None.

Item 4.

Mine Safety Disclosures.

None.

Item 5.

Other Information.

None

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Item 6.

Exhibits

 

Number

 

Description

3.1

 

Certificate of Incorporation of the Registrant (1)

3.2

 

Certificate of Amendment to the Certificate of Incorporation of the Registrant (2)

3.3

 

Amended and Restated Bylaws of the Registrant (3)

4.1

 

Second Supplemental Indenture, dated as of August 23, 2019, by and between the Registrant and U.S. Bank National Association, as the Trustee (4)

4.2

 

Form of Global Note of 3.900% Notes due 2024 (included in Exhibit 4.1) (4)

4.3

 

Indenture, dated as of June 17, 2014, by and between the Registrant and U.S. Bank National Association, as the Trustee (5)

4.4

 

Form of Global Note of 5.25% Convertible Senior Notes Due 2019 (included in Exhibit 4.3) (5)

4.5

 

Indenture, dated as of September 6, 2016, by and between the Registrant and U.S. Bank National Association, as the Trustee (6)

4.6

 

Form of Global Note of 4.625% Convertible Senior Notes due 2022 (included in Exhibit 4.5) (6)

4.7

 

Indenture, dated as of August 11, 2017, by and between the Registrant and U.S. Bank National Association, as the Trustee (7)

4.8

 

First Supplemental Indenture, dated as of August 11, 2017, by and between the Registrant and U.S. Bank National Association, as the Trustee (8)

4.9

 

Form of Global Note of 4.125% Notes Due 2022 (included in Exhibit 4.8) (8)

4.10

 

Third Supplemental Indenture, dated as of February 9, 2021, by and between the Registrant and U.S. Bank National Association, as the Trustee (9)

4.11

 

Form of Global Note of 2.850% due 2026 (included in Exhibit 4.10) (9)

31.1

 

Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934*

31.2

 

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934*

32.1

 

Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U. S.C. 1350)*

 

 

 

 

*Filed herewith.

 

(1)

Incorporated by reference to Exhibit (a)(2) to the Registrant’s Registration Statement under the Securities Act of 1933 (File No. 333-172669), on Form N-2, filed on May 13, 2011

(2)

Incorporated by reference to Exhibit 99.2 to the Registrant’s Form 8-K, filed on August 2, 2018

(3)

Incorporated by reference to Exhibit 99.3 to the Registrant’s Form 8-K, filed on August 2, 2018

(4)

Incorporated by reference to Exhibit 4.1 to the Registrant's Form 8-K, filed on August 23, 2019

(5)

Incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed on June 17, 2014.

(6)

Incorporated by reference to Exhibit 4.1 to the Registrant’s Form 8-K filed on September 6, 2016.

(7)

Incorporated by reference to Exhibit (d)(1) to Post-Effective Amendment No. 1 to the Registrant’s Registration Statement under the Securities Act of 1933 (File No. 333-216716), on Form N-2, filed on August 11, 2017.

(8)

Incorporated by reference to Exhibit (d)(4) to Post-Effective Amendment No. 1 to the Registrant's Registration Statement under the Securities Act of 1933 (File No. 333-216716), on Form N-2, filed on August 11, 2017.

(9)

Incorporated by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on February 9, 2021.

 

70


 

 

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

 

BlackRock TCP Capital Corp.

Date: November 3, 2021

 

 

 

By:

/s/ Rajneesh Vig

 

Name:

Rajneesh Vig

 

Title:

Chief Executive Officer

Date: November 3, 2021

 

 

 

By:

/s/ Erik L. Cuellar

 

Name:

Erik L. Cuellar

 

Title:

Chief Financial Officer

 

 

 

 

71