NEW YORK - BlackRock Capital Investment (NASDAQ:BKCC) Corporation (NASDAQ:BKCC), a business development company, has reported a decrease in net investment income (NII) for the fourth quarter of 2023, marking a slight decline from the previous quarter, yet showing a 15% year-over-year increase. The NII for the quarter was $9.3 million or $0.13 per share, a 3% drop from the third quarter but up from the same period in 2022.
The company's net asset value (NAV) also saw a marginal decline to $315.7 million as of December 31, 2023, compared to $317.6 million at the end of the previous quarter. This was attributed mainly to $3.9 million of net realized and unrealized losses on the portfolio during the quarter, which was partially offset by $2.0 million of NII that exceeded the declared dividend. Consequently, NAV per share decreased to $4.35 from $4.38 in the prior quarter.
During the fourth quarter, BlackRock (NYSE:BLK) Capital made gross deployments totaling $25.4 million, predominantly in first lien loans, with a weighted average yield on these deployments of 11.9%. The company reported gross repayments of $12.6 million and held 121 total portfolio companies at quarter end.
The company's weighted-average portfolio yield as of December 31, 2023, was 12.7%, a slight dip from 12.8% as of September 30, 2023. Net leverage increased to 0.91x, up from 0.84x at the end of the third quarter. Total available liquidity, including borrowing capacity and cash on hand, stood at $73.4 million, subject to leverage and borrowing base restrictions.
BlackRock Capital also announced that it is proceeding with a merger with BlackRock TCP Capital Corp . (NASDAQ:TCPC), with the transaction expected to close in the first quarter of 2024, subject to stockholder and regulatory approvals.
The Board of Directors declared a quarterly dividend of $0.10 per share, payable on March 29, 2024, to stockholders of record as of March 15, 2024. Shareholders participating in the company's dividend reinvestment plan will receive this dividend in cash to facilitate the anticipated merger closure with TCPC.
Chairman and Interim CEO James E. Keenan highlighted the company's selective portfolio growth and the strategic positioning for NAV stability. Keenan expressed optimism about the proposed merger with TCPC, which is anticipated to offer benefits such as more efficient access to capital and improved trading dynamics.
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