Q4 2024 BlackRock TCP Capital Corp Earnings Call Transcript
Key Points
- BlackRock TCP Capital Corp (TCPC) reported a full-year 2024 adjusted net investment income of $1.52 per share, indicating a strong income generation despite challenges.
- The company maintained a highly diversified portfolio with investments across 154 companies in over 20 industry sectors, reducing risk exposure.
- 91.2% of the portfolio was invested in senior secured loans, with 94.5% being floating rate, which can benefit from rising interest rates.
- The company repurchased 510,687 shares at a weighted average price of $8.86, demonstrating a commitment to shareholder value.
- The Adviser voluntarily agreed to waive one-third of the base management fee for three quarters in 2025, aligning management interests with shareholders.
- Net asset value (NAV) per share decreased to $9.23 from $10.11, reflecting significant markdowns in the investment portfolio.
- Non-accruals increased to 5.6% of the portfolio at fair market value, up from 3.8% in the previous quarter, indicating rising credit issues.
- The company reduced its regular dividend to $0.25 per share for the first quarter of 2025, reflecting a decline in earnings power.
- Significant markdowns were reported in investments such as Razor, Securus, and Astra, impacting overall financial performance.
- The weighted average effective yield of the portfolio decreased to 12.4% from 13.4% last quarter, indicating pressure on income generation.
Ladies and gentlemen, good afternoon. Welcome, everyone, to BlackRock TCP Capital Corp's fourth-quarter and year-ended 2024 earnings conference call.
Today's conference call is being recorded for replay purposes. (Operator Instructions)
And, now, I would like to turn the call over to Michaela Murray, a member of the BlackRock TCP Capital Corp Investor Relations Team. Michaela, please proceed.
Thank you.
Before we begin, I'll note that this conference call may contain forward-looking statements, based on the estimates and assumptions of management at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties and actual results could differ, materially, from those projected.
Any forward-looking statements made on this call are made as of today and are subject to change without notice. Additionally, certain information discussed and presented may have been derived from third-party sources
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