BlackRock TCP Capital Corp . (NASDAQ:TCPC) has fulfilled its obligations by repaying $250 million of the 2024 Notes on their maturity date of August 23, 2024. The repayment of these unsecured notes, which were issued in three separate transactions between 2019 and 2020, marks a significant financial move for the investment firm.
The company's leverage program, post-repayment, consists of a diverse set of debt instruments, including a $300 million credit facility through a subsidiary, a $200 million senior secured revolving credit facility, and other credit facilities and notes maturing between 2025 and 2029. Additionally, the company benefits from $160 million in committed leverage from the United States Small Business Administration.
BlackRock (NYSE:BLK) TCP Capital Corp. also highlighted its asset coverage ratio, which stood at 173.8% as of June 30, 2024. Following the repayment of the 2024 Notes, the asset coverage ratio increased to 180.2% as of the repayment date, underscoring the company's solid financial position in compliance with regulatory requirements.
This move comes after the company's adoption of the Asset Coverage Ratio Election, effective February 9, 2019, which allowed for a reduced asset coverage requirement from 200% to 150%. The decision, initially approved by the company's Board of Directors and subsequently by stockholders, enables BlackRock TCP Capital Corp. to leverage a higher ratio of total outstanding indebtedness to common equity.
BlackRock TCP Capital Corp.'s financial strategy and adherence to the Investment Company Act of 1940 reflect its commitment to maintaining a robust balance sheet and prudent financial management. The repayment of the 2024 Notes and the reported asset coverage ratios are based on a press release statement.
In other recent news, BlackRock TCP Capital Corp has released its Q2 2024 earnings report. The company reported an adjusted net investment income of $0.38 per share and an annualized return on average equity of approximately 14%.
A third-quarter dividend of $0.34 per share has been declared, set to be paid out on September 30th. Despite a rise in non-accrual levels, the firm continues to hold a strong credit quality across its diversified portfolio, with active restructuring efforts for several companies currently in progress.
In addition, BlackRock TCP Capital Corp maintains a robust internal risk rating of 1.5, with portfolio investments in 158 companies valued at around $2 billion. The company has also raised $325 million of fixed-rate unsecured debt at 6.95%. Available liquidity stands at $780 million, with a net leverage of 1.13x.
Recent developments also include the firm's active participation in the refinancing of SumUp and benefits garnered from the BlackRock platform. The company has also received $185 million from the sale or repayment of investments.
Analysts have noted these developments, emphasizing the company's continued commitment to maintaining a diversified investment portfolio and disciplined underwriting standards.
InvestingPro Insights
As BlackRock TCP Capital Corp. (NASDAQ:TCPC) navigates its financial strategies, including the recent repayment of its 2024 Notes, it's important for investors to consider the company's current financial health and market standing. According to real-time data from InvestingPro, TCPC has a market capitalization of approximately $797.71 million. Despite a challenging period, with the stock price experiencing considerable volatility and underperformance over the last month, the company has managed to maintain dividend payments for 13 consecutive years, boasting a significant dividend yield of 21.38% as of the last data point.
InvestingPro Tips reveal that TCPC's stock movements have been quite volatile, and the valuation implies a poor free cash flow yield. These factors could be crucial for investors looking for stable returns and might influence their decision-making process. On a positive note, TCPC has liquid assets that exceed its short-term obligations, which could indicate a degree of financial resilience.
For those interested in a deeper analysis, InvestingPro offers additional tips on TCPC's financial outlook. With insights on earnings revisions by analysts and profitability over the last twelve months, investors can access a comprehensive view of the company's performance on the InvestingPro platform.
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