Delaware
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814-00899
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56-2594706
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(State or Other Jurisdiction
of Incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
2951 28th Street, Suite 1000
Santa Monica, California
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90405
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(Address of Principal Executive Offices)
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(Zip Code)
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit Number
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Description
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99.1
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Press Release, dated as of November 5, 2015.
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TCP CAPITAL CORP.
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Date: November 5, 2015
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By:
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/s/ Paul L. Davis
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Name:
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Paul L. Davis
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Title:
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Chief Financial Officer
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Exhibit 99.1
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·
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Net investment income for the quarter ended September 30, 2015 was $19.4 million, or $0.40 per share on a diluted basis, after preferred dividends and $0.10 per share in incentive compensation on net investment income.
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·
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Net increase in net assets resulting from operations applicable to common shareholders for the quarter ended September 30, 2015 was $17.5 million, or $0.36 per share.
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·
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Net asset value per share at September 30, 2015 remained unchanged at $15.10 compared to June 30, 2015.
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·
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Total acquisitions during the quarter ended September 30, 2015 were $120.6 million and total dispositions were $65.3 million.
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·
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During the quarter, we extended the maturity date of our $116 million Partnership credit facility to July 31, 2018, and reduced the interest rate from LIBOR plus 2.50% to LIBOR plus 1.75% through July 31, 2016 and then LIBOR plus 2.50% through the maturity date. Additionally, the remaining $100.5 million Series A Preferred was exchanged for $100.5 million of term debt with the same terms and maturity date as the Partnership credit facility.
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·
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In the third quarter, we increased the aggregate principal commitment on the TCPC Funding Facility to $350 million, expanded the accordion feature to $400 million and extended the maturity date to March 6, 2020.
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·
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On November 5, 2015, our board of directors declared a fourth quarter dividend of $0.36 per share, payable on December 31, 2015 to shareholders of record as of December 17, 2015.
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Maturity
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Rate
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Carrying Value (1)
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Available
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Total Capacity
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|||||||||||||||
Partnership Facility
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||||||||||||||||||||
Revolving Credit Facility
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2018
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L+1.75
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%(2)
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$
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109,000,000
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$
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7,000,000
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$
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116,000,000
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|||||||||||
Term Loan
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2018
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L+1.75
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%(2)
|
100,500,000
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-
|
100,500,000
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||||||||||||||
TCPC Funding Facility
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2020
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L+2.50
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%(3)
|
221,000,000
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129,000,000
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350,000,000
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||||||||||||||
Convertible Notes ($108 million par)
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2019
|
5.25
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% |
106,005,233
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-
|
106,005,233
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||||||||||||||
SBA Debentures
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2024-2025 |
2.84
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%(4) |
38,800,000
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36,200,000
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75,000,000
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(5) | |||||||||||||
Total leverage
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$
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575,305,233
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$
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172,200,000
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$
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747,505,233
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TCP Capital Corp.
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||||||||
Consolidated Statements of Assets and Liabilities
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||||||||
September 30, 2015
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December 31, 2014
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|||||||
(unaudited)
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||||||||
Assets
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||||||||
Investments, at fair value:
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||||||||
Companies less than 5% owned (cost of $1,206,750,821 and $1,097,181,753, respectively)
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$
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1,187,883,822
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$
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1,081,901,384
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||||
Companies 5% to 25% owned (cost of $67,502,341 and $52,103,511, respectively)
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66,890,774
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48,716,425
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||||||
Companies more than 25% owned (cost of $38,631,089 and $40,213,258 respectively)
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14,386,043
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15,918,077
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||||||
Total investments (cost of $1,312,884,251 and $1,189,498,522, respectively)
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1,269,160,639
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1,146,535,886
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||||||
Cash and cash equivalents
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34,582,869
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27,268,792
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||||||
Deferred debt issuance costs
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9,844,273
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7,700,988
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||||||
Receivable for investments sold
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1,969,722
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10,961,369
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||||||
Accrued interest income:
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||||||||
Companies less than 5% owned
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13,261,132
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9,222,001
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||||||
Companies 5% to 25% owned
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750,685
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253,987
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||||||
Companies more than 25% owned
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17,493
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28,450
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||||||
Unrealized appreciation on swaps
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2,868,748
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1,717,610
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||||||
Options (cost of $51,750 and $51,750, respectively)
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-
|
497
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||||||
Prepaid expenses and other assets
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1,381,556
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2,177,217
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||||||
Total assets
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1,333,837,117
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1,205,866,797
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||||||
Liabilities
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||||||||
Debt
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575,305,233
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328,696,830
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||||||
Payable for investments purchased
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7,847,520
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2,049,518
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||||||
Incentive allocation payable
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4,838,534
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4,303,040
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||||||
Interest payable
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3,580,028
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1,510,981
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||||||
Payable to the Advisor
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731,172
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459,827
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||||||
Accrued expenses and other liabilities
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2,635,000
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3,219,783
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||||||
Total liabilities
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594,937,487
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340,239,979
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||||||
Commitments and contingencies
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||||||||
Preferred equity facility
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||||||||
Series A preferred limited partner interests in Special Value Continuation Partners, LP;
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||||||||
$20,000/interest liquidation preference; 0 and 6,700 interests authorized, issued and
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||||||||
outstanding as of September 30, 2015 and December 31, 2014, respectively
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-
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134,000,000
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||||||
Accumulated dividends on Series A preferred equity facility
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-
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497,790
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||||||
Total preferred limited partner interests
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-
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134,497,790
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||||||
Non-controlling interest
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||||||||
General Partner interest in Special Value Continuation Partners, LP
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-
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-
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||||||
Net assets applicable to common shareholders
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$
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738,899,630
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$
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731,129,028
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||||
Composition of net assets applicable to common shareholders
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||||||||
Common stock, $0.001 par value; 200,000,000 shares authorized, 48,934,498 and
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||||||||
48,710,627 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively
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$
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48,934
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$
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48,710
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||||
Paid-in capital in excess of par
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880,682,891
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877,103,880
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||||||
Accumulated net investment income
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28,066,387
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21,884,381
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||||||
Accumulated net realized losses
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(128,426,795
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)
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(126,408,033
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)
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||||
Accumulated net unrealized depreciation
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(41,471,787
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)
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(41,499,910
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)
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||||
Net assets applicable to common shareholders
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$
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738,899,630
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$
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731,129,028
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||||
Net assets per share
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$
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15.10
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$
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15.01
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TCP Capital Corp.
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||||||||||||||||
Consolidated Statements of Operations (Unaudited)
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||||||||||||||||
Three Months Ended September 30,
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Nine Months Ended September 30,
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|||||||||||||||
2015
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2014
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2015
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2014
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|||||||||||||
Investment income
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||||||||||||||||
Interest income:
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||||||||||||||||
Companies less than 5% owned
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$
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32,171,144
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$
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24,699,976
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$
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98,581,508
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$
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65,174,101
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||||||||
Companies 5% to 25% owned
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1,516,596
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1,728,834
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3,828,262
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4,423,013
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||||||||||||
Companies more than 25% owned
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125,074
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214,091
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444,168
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706,553
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||||||||||||
Dividend income:
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||||||||||||||||
Companies 5% to 25% owned
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-
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-
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-
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1,968,748
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||||||||||||
Lease income:
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||||||||||||||||
Companies 5% to 25% owned
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-
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74,038
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-
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282,581
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||||||||||||
Companies more than 25% owned
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354,958
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262,905
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978,000
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726,477
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||||||||||||
Other income:
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||||||||||||||||
Companies less than 5% owned
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1,331,277
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210,622
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3,420,283
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1,164,938
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||||||||||||
Total investment income
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35,499,049
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27,190,466
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107,252,221
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74,446,411
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||||||||||||
Operating expenses
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||||||||||||||||
Management and advisory fees
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4,703,999
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3,513,238
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13,681,411
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9,504,317
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||||||||||||
Interest expense
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3,746,722
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2,535,555
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10,488,383
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4,012,167
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||||||||||||
Legal fees, professional fees and due diligence expenses
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425,796
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268,710
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1,994,571
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828,102
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||||||||||||
Amortization of deferred debt issuance costs
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548,798
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545,294
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1,623,333
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1,347,442
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||||||||||||
Administrative expenses
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394,920
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392,794
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1,177,357
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1,029,069
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||||||||||||
Commitment fees
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315,206
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243,147
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919,649
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650,209
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||||||||||||
Insurance expense
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99,876
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83,996
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272,677
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202,823
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||||||||||||
Director fees
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67,625
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88,395
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233,465
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255,776
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||||||||||||
Custody fees
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74,891
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54,369
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214,141
|
166,025
|
||||||||||||
Other operating expenses
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866,249
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264,778
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2,182,452
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1,033,422
|
||||||||||||
Total operating expenses
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11,244,082
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7,990,276
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32,787,439
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19,029,352
|
||||||||||||
Net investment income
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24,254,967
|
19,200,190
|
74,464,782
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55,417,059
|
||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency
|
||||||||||||||||
Net realized gain (loss):
|
||||||||||||||||
Investments in companies less than 5% owned
|
5,735,352
|
544,212
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(3,714,114
|
)
|
(5,317,388
|
)
|
||||||||||
Investments in companies 5% to 25% owned
|
395
|
383,670
|
1,185
|
383,670
|
||||||||||||
Investments in companies more than 25% owned
|
-
|
-
|
19,167
|
-
|
||||||||||||
Net realized gain (loss)
|
5,735,747
|
927,882
|
(3,693,762
|
)
|
(4,933,718
|
)
|
||||||||||
Change in net unrealized appreciation/depreciation
|
(7,621,948
|
)
|
(5,433,060
|
)
|
28,123
|
2,596,620
|
||||||||||
Net realized and unrealized gain (loss)
|
(1,886,201
|
)
|
(4,505,178
|
)
|
(3,665,639
|
)
|
(2,337,098
|
)
|
||||||||
Net increase in net assets from operations
|
22,368,766
|
14,695,012
|
70,799,143
|
53,079,961
|
||||||||||||
Gain on repurchase of Series A preferred interests
|
-
|
-
|
1,675,000
|
-
|
||||||||||||
Dividends on Series A preferred equity facility
|
(460,836
|
)
|
(357,451
|
)
|
(1,251,930
|
)
|
(1,083,263
|
)
|
||||||||
Net change in accumulated dividends on Series A
|
||||||||||||||||
preferred equity facility
|
398,541
|
(4,718
|
)
|
497,790
|
5,394
|
|||||||||||
Distributions of incentive allocation to the General Partner from:
|
||||||||||||||||
Net investment income
|
(4,838,534
|
)
|
(3,767,604
|
)
|
(14,742,130
|
)
|
(10,867,837
|
)
|
||||||||
Net change in reserve for incentive allocation
|
-
|
901,035
|
-
|
467,419
|
||||||||||||
Net increase in net assets applicable to common
|
||||||||||||||||
shareholders resulting from operations
|
$
|
17,467,937
|
$
|
11,466,274
|
$
|
56,977,873
|
$
|
41,601,674
|
||||||||
Basic and diluted earnings per common share
|
$
|
0.36
|
$
|
0.29
|
$
|
1.17
|
$
|
1.11
|
||||||||
Basic and diluted weighted average common shares outstanding
|
48,957,567
|
40,079,914
|
48,858,263
|
37,507,497
|
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