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 SeptemberJune 30, 20182019
  
☐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)
______________________
 
Delaware56-2594706
(State or Other Jurisdiction of Incorporation)(IRS Employer Identification No.)
  
2951 28th Street, Suite 1000
 
Santa Monica, California90405
(Address of Principal Executive Offices)(Zip Code)

Registrant’s telephone number, including area code (310) 566-1000

Securities registered pursuant to Section 12(b) of the Act:
 
Common Stock, par value $0.001 per shareTCPCNASDAQ 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 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 x 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 x
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 x
The number of shares of the Registrant’s common stock, $0.001 par value, outstanding as of NovemberAugust 7, 20182019 was 58,789,603.58,766,000.





BLACKROCK TCP CAPITAL CORP.

FORM 10-Q

FOR THE NINESIX MONTHS ENDED SEPTEMBERJUNE 30, 20182019

TABLE OF CONTENTS
Part I.Financial Information 
   
Item 1.Financial Statements 
 
Consolidated Statements of Assets and Liabilities as of SeptemberJune 30, 20182019 (unaudited) and December 31, 20172018
2
 
Consolidated Schedule of Investments as of SeptemberJune 30, 20182019 (unaudited) and December 31, 20172018
3
 
Consolidated Statements of Operations for the three and ninesix months ended SeptemberJune 30, 20182019 (unaudited) and SeptemberJune 30, 20172018 (unaudited)
2122
 
Consolidated Statements of Changes in Net Assets for the ninethree and six months ended SeptemberJune 30, 2019 (unaudited) and June 30, 2018 (unaudited) and year ended December 31, 2017
2223
 
Consolidated Statements of Cash Flows for the ninesix months ended SeptemberJune 30, 20182019 (unaudited) and SeptemberJune 30, 20172018 (unaudited)
2324
 
Notes to Consolidated Financial Statements (unaudited)
2425
 
Consolidated Schedule of Changes in Investments in Affiliates for the ninesix months ended SeptemberJune 30, 20182019 (unaudited) and year ended December 31, 20172018
5051
 
Consolidated Schedule of Restricted Securities of Unaffiliated Issuers as of SeptemberJune 30, 20182019 (unaudited) and December 31, 20172018
5355
   
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
5557
   
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
73
   
Item 4.
Controls and Procedures
7475
   
Part II.Other Information 
   
Item 1.
Legal Proceedings
7576
   
Item 1A.
Risk Factors
7576
   
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
7576
   
Item 3.
Defaults upon Senior Securities
7576
   
Item 4.
Mine Safety Disclosures
7576
   
Item 5.
Other Information
76
   
Item 6.
Exhibits
7776



1





BlackRock TCP Capital Corp.

Consolidated Statements of Assets and Liabilities 
September 30, 2018 December 31, 2017June 30, 2019 December 31, 2018
(unaudited)  (unaudited)  
Assets      
Investments, at fair value:      
Companies less than 5% owned (cost of $1,404,434,176 and $1,356,459,251, respectively)$1,403,613,287
 $1,362,514,206
Companies 5% to 25% owned (cost of $105,647,493 and $84,153,698, respectively)81,525,781
 75,635,342
Companies more than 25% owned (cost of $107,944,826 and $106,543,799, respectively)74,973,816
 76,383,155
Total investments (cost of $1,618,026,495 and $1,547,156,748, respectively)1,560,112,884
 1,514,532,703
Companies less than 5% owned (cost of $1,576,176,528 and $1,460,936,257, respectively)$1,549,241,885
 $1,463,800,744
Companies 5% to 25% owned (cost of $94,022,360 and $78,353,253, respectively)73,909,982
 63,193,357
Companies more than 25% owned (cost of $104,824,283 and $110,258,458, respectively)66,030,402
 70,291,689
Total investments (cost of $1,775,023,171 and $1,649,547,968, respectively)1,689,182,269
 1,597,285,790
      
Cash and cash equivalents (including restricted cash of $0 and $798,108, respectively)90,282,658
 86,625,237
Cash and cash equivalents21,857,502
 27,920,402
Accrued interest income:      
Companies less than 5% owned21,309,269
 18,533,095
19,087,851
 20,898,838
Companies 5% to 25% owned1,126,960
 817,984
1,039,655
 678,057
Companies more than 25% owned81,032
 16,859
212,221
 124,009
Deferred debt issuance costs4,781,251
 3,276,838
5,947,161
 4,843,985
Receivable for investments sold59,006
 431,483
433,969
 —
Prepaid expenses and other assets7,456,175
 5,188,169
4,716,366
 7,784,608
Total assets1,685,209,235
 1,629,422,368
1,742,476,994
 1,659,535,689
      
Liabilities      
Debt, net of unamortized issuance costs of $7,356,870 and $8,624,072, respectively764,349,255
 725,200,281
Debt, net of unamortized issuance costs of $6,232,536 and $6,805,196, respectively907,390,166
 805,202,192
Payable for investments purchased53,040,539
 16,474,632
12,001,815
 908,759
Interest payable8,730,757
 8,747,872
Management and advisory fees payable5,313,570
 5,247,344
Incentive compensation payable6,127,983
 5,983,135
4,830,994
 5,840,346
Interest payable5,445,306
 7,771,537
Payable to the Advisor1,312,485
 800,703
898,196
 1,226,372
Unrealized depreciation on swaps—
 603,745
Accrued expenses and other liabilities1,920,132
 1,860,209
1,970,236
 1,888,077
Total liabilities832,195,700
 758,694,242
941,135,734
 829,060,962
      
Commitments and contingencies (Note 5)      
      
Net assets applicable to common shareholders$853,013,535
 $870,728,126
$801,341,260
 $830,474,727
      
Composition of net assets applicable to common shareholders      
Common stock, $0.001 par value; 200,000,000 shares authorized, 58,800,001 and 58,847,256 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively$58,800
 $58,847
Common stock, $0.001 par value; 200,000,000 shares authorized, 58,766,000 and 58,774,607 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively$58,766
 $58,775
Paid-in capital in excess of par1,038,172,843
 1,038,855,948
999,953,094
 1,000,073,183
Accumulated net investment income10,937,797
 4,443,768
Accumulated net realized losses(138,209,470) (139,390,703)
Accumulated net unrealized depreciation(57,946,435) (33,239,734)
Distributable earnings (loss)(198,670,600) (169,657,231)
Net assets applicable to common shareholders$853,013,535
 $870,728,126
$801,341,260
 $830,474,727
      
Net assets per share$14.51
 $14.80
$13.64
 $14.13

See accompanying notes to the consolidated financial statements.

2




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited)

SeptemberJune 30, 20182019

Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (A)Debt Investments (A)      Debt Investments (A)      
Advertising, Public Relations and MarketingAdvertising, Public Relations and Marketing     Advertising, Public Relations and Marketing     
Foursquare Labs, Inc. First Lien Delayed Draw Term Loan (5.0% Exit Fee) LIBOR (Q) —
 8.81% 11.19% 6/1/2020 $22,500,000
 $22,260,691
 $22,279,503
 1.35% L/N First Lien Delayed Draw Term Loan (5.0% Exit Fee) LIBOR (Q) —
 8.81% 11.38% 6/1/2020 $22,500,000
 $22,368,601
 $22,365,000
 1.31 % L/N
InMobi, Inc. (Singapore) First Lien Delayed Draw Tranche 1 Term Loan (4.0% Exit Fee) LIBOR (Q) 1.37% 8.13% 10.50% 12/31/2019 $22,775,057
 22,563,672
 22,775,057
 1.38% H/L/N First Lien Term Loan LIBOR (Q) 1.37% 8.13% 10.69% 9/30/2021 $37,775,057
 37,502,461
 37,134,770
 2.17 % H/N
         44,824,363
 45,054,560
 2.73%          59,871,062
 59,499,770
 3.48 % 
Air TransportationAir Transportation     Air Transportation     
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan A LIBOR (M) —
 7.25% 9.50% 12/14/2021 $13,361,703
 13,205,321
 13,552,107
 0.82% N
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan B LIBOR (M) —
 7.25% 9.50% 2/28/2022 $7,891,804
 7,795,032
 8,116,720
 0.49% N
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan C LIBOR (M) —
 7.25% 9.50% 7/31/2022 $3,288,984
 3,247,375
 3,382,720
 0.20% N
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan C-1 LIBOR (M) —
 7.25% 9.50% 9/30/2022 $5,037,745
 4,965,350
 5,181,320
 0.31% N
Mesa Airlines, Inc. Engine Acquisition Term loan C-3 LIBOR (M) —
 7.25% 9.50% 2/28/2023 $1,397,218
 1,375,000
 1,462,328
 0.09% N Aircraft Acquisition Loan LIBOR (Q) —
 5.25% 7.69% 6/5/2023 $24,781,126
 24,475,342
 24,471,362
 1.43 % N
Mesa Air Group, Inc. Junior Loan Agreement (N902FJ) LIBOR (Q) —
 7.50% 9.84% 2/1/2022 $1,080,614
 1,070,374
 1,072,564
 0.06% N Junior Loan Agreement (N902FJ) LIBOR (Q) —
 7.50% 10.08% 2/1/2022 $917,390
 911,224
 917,390
 0.05 % N
Mesa Air Group, Inc. Junior Loan Agreement (N903FJ) LIBOR (Q) —
 7.50% 9.84% 2/1/2022 $1,297,062
 1,284,771
 1,287,399
 0.08% N Junior Loan Agreement (N903FJ) LIBOR (Q) —
 7.50% 10.08% 2/1/2022 $1,089,767
 1,082,443
 1,089,767
 0.06 % N
Mesa Air Group, Inc. Junior Loan Agreement (N904FJ) LIBOR (Q) —
 7.50% 9.84% 2/1/2022 $1,486,622
 1,472,534
 1,475,547
 0.09% N Junior Loan Agreement (N904FJ) LIBOR (Q) —
 7.50% 10.08% 2/1/2022 $1,240,730
 1,232,392
 1,240,730
 0.07 % N
Mesa Air Group, Inc. Junior Loan Agreement (N905FJ) LIBOR (Q) —
 7.50% 9.84% 2/1/2022 $1,029,097
 1,019,345
 1,021,430
 0.06% N Junior Loan Agreement (N905FJ) LIBOR (Q) —
 7.50% 10.08% 2/1/2022 $876,362
 870,472
 876,362
 0.05 % N
Mesa Air Group, Inc. Junior Loan Agreement (N906FJ) LIBOR (Q) —
 7.50% 9.84% 5/1/2022 $1,069,288
 1,059,064
 1,061,322
 0.06% N Junior Loan Agreement (N906FJ) LIBOR (Q) —
 7.50% 10.08% 5/1/2022 $921,763
 915,257
 921,763
 0.05 % N
Mesa Air Group, Inc. Junior Loan Agreement (N907FJ) LIBOR (Q) —
 7.50% 9.84% 5/1/2022 $1,122,664
 1,111,930
 1,114,300
 0.07% N Junior Loan Agreement (N907FJ) LIBOR (Q) —
 7.50% 10.08% 5/1/2022 $965,175
 958,363
 965,175
 0.06 % N
Mesa Air Group, Inc. Junior Loan Agreement (N908FJ) LIBOR (Q) —
 7.50% 9.84% 5/1/2022 $1,737,178
 1,720,569
 1,724,236
 0.10% N Junior Loan Agreement (N908FJ) LIBOR (Q) —
 7.50% 10.08% 5/1/2022 $1,464,982
 1,454,642
 1,464,982
 0.09 % N
Mesa Air Group, Inc. Junior Loan Agreement (N909FJ) LIBOR (Q) —
 7.50% 9.84% 8/1/2022 $707,858
 701,068
 702,584
 0.04% N Junior Loan Agreement (N909FJ) LIBOR (Q) —
 7.50% 10.08% 8/1/2022 $634,089
 629,539
 634,089
 0.04 % N
Mesa Air Group, Inc. Junior Loan Agreement (N910FJ) LIBOR (Q) —
 7.50% 9.84% 8/1/2022 $669,445
 663,023
 664,457
 0.04% N Junior Loan Agreement (N910FJ) LIBOR (Q) —
 7.50% 10.08% 8/1/2022 $602,283
 597,961
 602,283
 0.04 % N
         40,690,756
 41,819,034
 2.51%          33,127,635
 33,183,903
 1.94 % 
Amusement and RecreationAmusement and Recreation     Amusement and Recreation     
Blue Star Sports Holdings, Inc. First Lien Delayed Draw Term Loan LIBOR (M) 1.00% 5.75% 7.91% 6/15/2024 $—
 (15,857) —
 —
 K/N First Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 5.75% 8.34% 6/15/2024 $55,556
 41,744
 53,472
 —
 N
Blue Star Sports Holdings, Inc. First Lien Revolver LIBOR (M) 1.00% 5.75% 7.91% 6/15/2024 $122,222
 119,040
 118,972
 0.01% N First Lien Revolver LIBOR (Q) 1.00% 5.75% 8.27% 6/15/2024 $111,111
 108,310
 104,861
 0.01 % N
Blue Star Sports Holdings, Inc. First Lien Term Loan LIBOR (M) 1.00% 5.75% 7.91% 6/15/2024 $1,500,000
 1,470,816
 1,470,750
 0.09% N First Lien Term Loan LIBOR (M) 1.00% 5.75% 8.15% 6/15/2024 $1,504,611
 1,478,381
 1,448,188
 0.08 % N
Machine Zone, Inc. First Lien Term Loan LIBOR (M) —
 13.50% 15.61% 2/1/2021 $5,462,818
 5,394,897
 5,378,690
 0.33% N First Lien Term Loan (10.0% Exit Fee) LIBOR (Q) —
 13.50% 15.99% 2/1/2021 $5,586,967
 5,540,901
 5,490,592
 0.32 % L/N
VSS-Southern Holdings, LLC (Southern Theatres) First Lien Term Loan LIBOR (Q) 1.00% 6.50% Cash+2.00% PIK
 10.89% 11/3/2020 $23,890,041
 23,630,028
 24,337,980
 1.47% N First Lien Term Loan LIBOR (Q) 1.00% 6.50% Cash+2.00% PIK
 10.83% 11/3/2020 $4,876,530
 4,843,584
 4,876,530
 0.29 % N
VSS-Southern Holdings, LLC (Southern Theatres) Sr Secured Revolver LIBOR (Q) 1.00% 6.50% Cash+2.00% PIK
 10.89% 11/3/2020 $856,164
 847,516
 856,165
 0.05% N Sr Secured Revolver LIBOR (Q) 1.00% 6.50% Cash+2.00% PIK
 10.83% 11/3/2020 $—
 (5,432) —
 —
 K/N
VSS-Southern Holdings, LLC (Southern Theatres) First Lien Incremental Term Loan LIBOR (Q) 1.00% 6.50% Cash+2.00% PIK
 10.83% 11/2/2022 $290,821
 288,474
 290,822
 0.02 % N
         31,446,440
 32,162,557
 1.95%          12,295,962
 12,264,465
 0.72 % 
Building Equipment ContractorsBuilding Equipment Contractors     Building Equipment Contractors     
Hylan Datacom & Electrical, LLC First Lien Incremental Term Loan LIBOR (M) 1.00% 7.50% 9.74% 7/25/2021 $2,527,258
 2,467,928
 2,543,685
 0.15% N First Lien Incremental Term Loan LIBOR (M) 1.00% 7.50% 9.94% 7/25/2021 $2,465,638
 2,422,266
 2,466,871
 0.14 % N
Hylan Datacom & Electrical, LLC First Lien Term Loan LIBOR (M) 1.00% 7.50% 9.74% 7/25/2021 $13,977,627
 13,851,306
 14,068,481
 0.85% N First Lien Term Loan LIBOR (M) 1.00% 7.50% 9.94% 7/25/2021 $13,636,824
 13,547,192
 13,643,642
 0.80 % N
TCFI Amteck Holdings, LLC First Lien Delayed Draw Term Loan LIBOR (Q) —
 6.25% 8.63% 5/22/2023 $481,249
 472,104
 472,106
 0.03% N First Lien Delayed Draw Term Loan LIBOR (Q) —
 6.25% 8.88% 5/22/2023 $481,249
 473,476
 469,459
 0.03 % N
TCFI Amteck Holdings, LLC First Lien Term Loan LIBOR (Q) —
 6.25% 8.63% 5/22/2023 $16,260,216
 15,949,878
 15,951,272
 0.97% N First Lien Term Loan LIBOR (Q) —
 6.25% 8.88% 5/22/2023 $15,931,362
 15,672,907
 15,541,044
 0.91 % N
         32,741,216
 33,035,544
 2.00%          32,115,841
 32,121,016
 1.88 % 
Business Support ServicesBusiness Support Services     
GC Agile Holdings Limited (Apex) (England) First Lien Delayed Term Loan B LIBOR (Q) 1.00% 7.00% 9.32% 6/15/2025 $19,063,320
 18,686,786
 18,682,054
 1.09 % H/N
GC Agile Holdings Limited (Apex) (England) First Lien Term Loan A LIBOR (Q) 1.00% 7.00% 9.32% 6/15/2025 $829,146
 813,275
 812,563
 0.05 % H/N
STG-Fairway Acquisitions, Inc. (First Advantage) Second Lien Term Loan LIBOR (M) 1.00% 9.25% 11.65% 6/30/2023 $31,000,000
 30,700,064
 31,000,000
 1.81 % N
                        50,200,125
 50,494,617
 2.95 % 
               
     
         
 
 
                
                
 
 
 

 
 
 
 
 
 
 
                
 
 
 

 
 
 
 
 
 
 
         
 
 
 
               

3




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

SeptemberJune 30, 20182019



Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)
Debt Investments (continued)
       Debt Investments (continued)     
Business Support Services     
STG-Fairway Acquisitions, Inc. (First Advantage) Second Lien Term Loan LIBOR (M) 1.00% 9.25% 11.49% 6/30/2023 $31,000,000
 $30,663,535
 $31,000,000
 1.88% N
     
Chemicals     
Green Biologics, Inc. Convertible Note Fixed —
 10.00% PIK
 10.00% 6/30/2019 $10,500,000
 10,476,512
 1,382,199
 0.08% E/N
Green Biologics, Inc. Sr Secured Term Loan (12.4 % Exit Fee) Fixed —
 10.00% PIK
 10.00% 12/31/2020 $5,112,612
 5,084,395
 878,868
 0.05% L/N
Green Biologics, Inc. Super Secured Term Loan (100.0% Exit Fee) Fixed —
 10.00% PIK
 10.00% 6/30/2019 $1,570,362
 1,570,362
 1,875,936
 0.11% L/N
Nanosys, Inc. First Lien Delayed Draw Term Loan (3.5% Exit Fee) LIBOR (Q) —
 9.81% 12.19% 4/1/2019 $5,773,290
 5,688,380
 5,787,723
 0.35% L/N
         22,819,649
 9,924,726
 0.59% 
Communications Equipment Manufacturing     
Globecomm Systems, Inc. First Lien Incremental Term Loan LIBOR (Q) 1.25% 7.63% 10.00% 12/11/2021 $189,675
 185,487
 189,675
 0.01% B/N
Globecomm Systems, Inc. First Tranche Term Loan LIBOR (Q) 1.25% 5.50% 7.88% 12/11/2021 $7,620,234
 7,620,234
 7,620,236
 0.46% B/N
Globecomm Systems, Inc. Second Tranche Term Loan LIBOR (Q) 1.25% 8.00% 10.38% 12/11/2021 $2,587,800
 2,587,800
 2,587,800
 0.16% B/N
Globecomm Systems, Inc. Third Tranche Term Loan Fixed —
 12.50% PIK
 12.50% 12/11/2021 $1,370,538
 1,370,538
 1,029,343
 0.06% B/N
Globecomm Systems, Inc. Fourth Tranche Term Loan Fixed —
 12.50% PIK
 12.50% 12/11/2021 $2,477,512
 2,477,512
 —
 —
 B/N
Globecomm Systems, Inc. Incremental First Tranche Term Loan LIBOR (Q) 1.25% 5.50% 7.88% 12/11/2021 $244,778
 244,778
 244,778
 0.01% B/N
         14,486,349
 11,671,832
 0.70% 
Computer Systems Design and Related ServicesComputer Systems Design and Related Services     Computer Systems Design and Related Services     
Fidelis Acquisitionco, LLC First Lien Term Loan B LIBOR (Q) —
 8.00% PIK
 10.38% 12/31/2022 $25,904,525
 25,904,525
 22,474,766
 1.36% N First Lien Term Loan A LIBOR (Q) —
 4.00% PIK
 6.44% 12/31/2022 $2,878,281
 $2,878,281
 $2,878,281
 0.17 % N
Fidelis Acquisitionco, LLC First Lien Term Loan C LIBOR (Q) —
 10.00% PIK
 12.38% 12/31/2022 $22,693,688
 22,693,688
 19,441,682
 1.18% N First Lien Term Loan B LIBOR (Q) —
 8.00% PIK
 10.63% 12/31/2022 $25,904,525
 25,904,525
 18,964,730
 1.11 % C/N
Fidelis Acquisitionco, LLC First Lien Term Loan C LIBOR (Q) —
 10.00% PIK
 12.63% 12/31/2022 $26,765,575
 27,804,525
 —
 —
 C/N
Snow Software AB First Lien Term Loan LIBOR (Q) 2.00% 6.00% 8.38% 4/17/2024 $13,081,645
 12,827,963
 12,820,012
 0.75 % N
Snow Software AB Sr Secured Revolver LIBOR (Q) 2.00% 6.00% 8.38% 4/17/2024 $—
 (83,660) (87,211) (0.01)% K/N
         48,598,213
 41,916,448
 2.54%          69,331,634
 34,575,812
 2.02 % 
ConstructionConstruction     Construction     
Brannan Sand Gravel Company, LLC First Lien Term Loan LIBOR (S) —
 5.25% 7.69% 7/3/2023 $9,524,112
 9,386,696
 9,571,732
 0.58% N First Lien Term Loan LIBOR (Q) —
 5.25% 7.63% 7/3/2023 $7,323,673
 7,234,818
 7,290,716
 0.43 % N
                              
Credit (Nondepository)Credit (Nondepository)     Credit (Nondepository)     
Auto Trakk SPV, LLC First Lien Delayed Draw Term Loan LIBOR (M) 0.50% 9.00% 11.16% 12/21/2021 $22,432,442
 22,147,723
 22,536,325
 1.37% N First Lien Delayed Draw Term Loan LIBOR (M) 0.50% 6.50% 8.89% 12/21/2021 $23,971,792
 23,767,318
 23,951,418
 1.40 % N
CFG Investments Limited (Caribbean Financial Group) (Cayman Islands) Subordinated Class B Notes Fixed —
 9.42% 9.42% 11/15/2026 $28,314,000
 27,445,355
 29,099,714
 1.76% E/G/H/N Subordinated Class B Notes Fixed —
 9.42% 9.42% 11/15/2026 $28,314,000
 27,466,270
 28,314,000
 1.65 % E/G/H/N
RSB-160, LLC (Lat20) First Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 6.00% 8.34% 7/20/2022 $2,875,801
 2,801,748
 2,818,301
 0.17% N First Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 6.00% 8.40% 7/20/2022 $3,833,333
 3,770,885
 3,767,975
 0.22 % N
RSB-160, LLC (Lat20) First Lien Incremental Delayed Draw Term Loan LIBOR (Q) 1.00% 6.00% 8.40% 7/20/2022 $—
 —
 (75,632) —
 K/N
         52,394,826
 54,454,340
 3.30%          55,004,473
 55,957,761
 3.27 % 
Credit Related ActivitiesCredit Related Activities     Credit Related Activities 
 
 
Pegasus Business Intelligence, LP (Onyx Centersource) First Lien Incremental Term Loan LIBOR (Q) 1.00% 6.25% 8.64% 12/20/2021 $5,751,869
 5,751,869
 5,782,642
 0.35% N First Lien Incremental Term Loan LIBOR (Q) 1.00% 6.25% 8.58% 12/20/2021 $5,707,706
 5,707,706
 5,799,030
 0.34 % N
Pegasus Business Intelligence, LP (Onyx Centersource) First Lien Term Loan LIBOR (Q) 1.00% 6.25% 8.64% 12/20/2021 $14,315,246
 14,217,463
 14,391,833
 0.87% N First Lien Term Loan LIBOR (Q) 1.00% 6.25% 8.58% 12/20/2021 $13,656,861
 13,585,132
 13,875,371
 0.81 % N
Pegasus Business Intelligence, LP (Onyx Centersource) Revolver LIBOR (Q) 1.00% 6.25% 8.64% 12/20/2021 $—
 (4,391) —
 —% K/N Revolver LIBOR (Q) 1.00% 6.25% 8.58% 12/20/2021 $—
 (3,371) —
 —
 K/N
Pacific Union Financial, LLC First Lien Term Loan LIBOR (M) 1.00% 7.50% 9.60% 4/21/2022 $24,895,833
 24,712,707
 23,372,208
 1.42% N
         44,677,648
 43,546,683
 2.64%          19,289,467
 19,674,401
 1.15 % 
Data Processing and Hosting ServicesData Processing and Hosting Services 
 
 
Applause App Quality, Inc. First Lien Term Loan LIBOR (Q) 1.00% 5.00% 7.59% 9/20/2022 $20,772,306
 20,480,808
 20,724,530
 1.21 % N
Applause App Quality, Inc. Sr Secured Revolver LIBOR (Q) 1.00% 5.00% 7.59% 9/20/2022 $—
 (19,513) (3,473) —
 K/N
DigiCert Holdings, Inc. Second Lien Term Loan LIBOR (M) 1.00% 8.00% 10.40% 10/31/2025 $9,590,821
 9,565,616
 9,542,867
 0.56 % G
Domo, Inc. First Lien Delayed Draw Term Loan (7.0% Exit Fee) LIBOR (M) —
 5.63% Cash+2.50% PIK
 10.56% 10/1/2022 $51,473,500
 51,078,926
 51,167,233
 2.99 % L/N
Donuts Inc. First Lien Revolver LIBOR (Q) 1.00% 6.25% 8.65% 9/17/2023 $373,849
 347,395
 359,366
 0.02 % N
Donuts Inc. First Lien Term Loan LIBOR (Q) 1.00% 6.25% 8.58% 9/17/2023 $10,965,517
 10,679,937
 10,812,000
 0.63 % N
Pulse Secure, LLC First Lien Term Loan LIBOR (M) 1.00% 7.00% 9.44% 5/1/2022 $11,263,705
 11,167,150
 11,267,084
 0.66 % N
Pulse Secure, LLC Sr Secured Revolver LIBOR (M) 1.00% 7.00% 9.44% 5/1/2022 $—
 (11,461) —
 —
 K/N
SnapLogic, Inc. First Lien Term Loan LIBOR (Q) —
 7.81% Cash+2.00% PIK
 12.38% 3/1/2022 $31,631,420
 31,110,053
 30,625,541
 1.79 % N
TierPoint, LLC Second Lien Term Loan LIBOR (M) 1.00% 7.25% 9.65% 5/5/2025 $4,275,000
 4,237,006
 3,982,868
 0.23 % 
Web.com Group Inc. Second Lien Term Loan LIBOR (M) —
 7.75% 10.16% 10/11/2026 $18,280,678
 18,152,304
 18,006,468
 1.05 % J
                        156,788,221
 156,484,484
 9.14 % 
               
               
               
               
               
Diversified SoftwareDiversified Software       
Acronis International GmbH
(Switzerland)		 First Lien Term Loan LIBOR (Q) 1.00% 11.5% Cash+2.00% PIK
 16.13% 7/16/2020 $14,881,496
 14,885,844
 14,933,581
 0.87 % H/N
Apptio, Inc. First Lien Term Loan LIBOR (M) 1.00% 7.25% 9.67% 1/10/2025 $11,812,993
 11,588,066
 11,781,098
 0.69 % N
Apptio, Inc. Sr Secured Revolver LIBOR (M) 1.00% 7.25% 9.67% 1/10/2025 $—
 (14,178) (2,077) —
 K/N
Autoalert, LLC First Lien Incremental Term Loan LIBOR (Q) 0.25% 5.75% Cash+3.00% PIK
 11.38% 12/31/2020 $38,379,156
 38,218,436
 38,954,844
 2.28 % N
Autoalert, LLC First Lien Term Loan LIBOR (Q) 0.25% 5.75% Cash+3.00% PIK
 11.38% 12/31/2020 $15,188,522
 15,038,538
 15,416,350
 0.90 % N
Bond International Software, Inc. (United Kingdom) First Lien Term Loan LIBOR (Q) 1.00% 10.50% 13.10% 11/4/2021 $26,358,696
 26,023,011
 26,555,068
 1.55 % H/N


4




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

SeptemberJune 30, 20182019



Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)               
        
Data Processing and Hosting Services      
Applause App Quality, Inc. First Lien Term Loan LIBOR (Q) 1.00% 6.50% 8.85% 9/20/2022 $22,647,306
 $22,265,837
 $22,873,779
 1.39 % N
Applause App Quality, Inc. Sr Secured Revolver LIBOR (Q) 1.00% 6.50% 8.85% 9/20/2022 $—
 (24,022) —
 —
 K/N
Datto, Inc. First Lien Term Loan LIBOR (M) 1.00% 8.00% 10.15% 12/7/2022 $32,792,848
 32,224,308
 32,497,713
 1.97 % N
Datto, Inc. Sr Secured Revolver LIBOR (M) 1.00% 8.00% 10.15% 12/7/2022 $—
 (36,994) (19,864) —
 K/N
DigiCert Holdings, Inc. Second Lien Term Loan LIBOR (M) 1.00% 8.00% 10.24% 10/31/2025 $11,988,526
 11,953,930
 11,981,034
 0.73 % G
Domo, Inc. First Lien Delayed Draw Term Loan (4.5% Exit Fee) LIBOR (S) —
 5.50% Cash+2.50% PIK
 10.50% 6/1/2021 $50,511,351
 49,914,262
 51,183,152
 3.10 % L/N
Donuts Inc. First Lien Revolver LIBOR (Q) 1.00% 6.25% 8.58% 9/17/2023 $373,849
 343,037
 362,635
 0.02 % N
Donuts Inc. First Lien Term Loan LIBOR (Q) 1.00% 6.25% 8.58% 9/17/2023 $10,965,517
 10,638,628
 10,636,552
 0.64 % N
Intralinks, Inc. Second Lien Term Loan LIBOR (M) 1.00% 8.00% 10.25% 11/14/2025 $2,635,569
 2,611,372
 2,677,303
 0.16 % N
Pulse Secure, LLC First Lien Term Loan LIBOR (M) 1.00% 7.00% 9.08% 5/1/2022 $11,444,945
 11,318,672
 11,467,835
 0.69 % N
Pulse Secure, LLC Sr Secured Revolver LIBOR (M) 1.00% 7.00% 9.08% 5/1/2022 $—
 (14,478) —
 —
 K/N
SnapLogic, Inc. First Lien Term Loan LIBOR (Q) —
 7.81% Cash+2.00% PIK
 12.19% 3/1/2022 $21,196,755
 20,858,494
 21,249,746
 1.29 % N
TierPoint, LLC Second Lien Term Loan LIBOR (M) 1.00% 7.25% 9.49% 5/5/2025 $5,625,000
 5,571,802
 5,545,913
 0.34 %  
Web.com Group Inc. Second Lien Term Loan LIBOR (Q) —
 7.75% 9.88% 10/15/2026 $24,980,112
 24,792,761
 25,198,688
 1.53 % J
                192,417,609
 195,654,486
 11.86 %  
Diversified Software      
Acronis International GmbH (Switzerland) First Lien Term Loan LIBOR (Q) 1.00% 11.50%Cash+2.00% PIK
 15.88% 7/16/2020 $15,821,243
 15,825,865
 15,821,243
 0.96 % H/N
ArcServe (USA), LLC Second Lien Term Loan LIBOR (Q) 0.50% 8.50% Cash+1.25% PIK
 12.08% 1/31/2020 $30,996,656
 30,822,146
 30,638,645
 1.86 % N
Autoalert, LLC First Lien Term Loan LIBOR (Q) 0.25% 5.75% Cash+3.00% PIK
 11.13% 12/31/2019 $37,601,014
 37,430,046
 37,582,214
 2.28 % N
Autoalert, LLC First Lien Term Loan LIBOR (Q) 0.25% 5.75% Cash+3.00% PIK
 11.13% 12/31/2019 $14,903,731
 14,685,602
 14,896,279
 0.90 % N
Bond International Software, Inc. (United Kingdom) First Lien Term Loan LIBOR (Q) 1.00% 10.00% 12.34% 11/4/2021 $26,358,696
 25,933,533
 25,820,978
 1.56 % H/N
DealerFX, Inc. First Lien Term Loan LIBOR (S) —
 6.25% Cash+2.00% PIK
 10.69% 2/1/2023 $15,972,246
 15,688,898
 16,135,961
 0.98 % N
ECI Macola/Max Holding, LLC Second Lien Term Loan LIBOR (Q) 1.00% 8.00% 10.39% 9/19/2025 $24,325,623
 24,113,831
 24,325,623
 1.47 % N
Fishbowl, Inc. First Lien Term Loan LIBOR (S) —
 2.80% Cash+8.45% PIK
 13.69% 1/26/2022 $21,324,066
 20,867,635
 20,590,518
 1.25 % N
iCIMS, Inc. First Lien Term Loan LIBOR (Q) 1.00% 6.50% 8.88% 9/12/2024 $7,851,765
 7,695,515
 7,694,729
 0.47 % N
iCIMS, Inc. Sr Secured Revolver LIBOR (Q) 1.00% 6.50% 8.88% 9/12/2024 $—
 (9,729) (9,815) —
 K/N
JAMF Holdings, Inc. First Lien Term Loan LIBOR (Q) 1.00% 8.00% 10.32% 11/13/2022 $14,160,797
 13,914,145
 13,990,868
 0.85 % N
JAMF Holdings, Inc. Sr Secured Revolver LIBOR (Q) 1.00% 8.00% 10.32% 11/13/2022 $—
 (20,027) (14,569) —
 K/N
Lithium Technologies, LLC First Lien Term Loan LIBOR (Q) 1.00% 8.00% 10.35% 10/3/2022 $20,884,731
 20,503,975
 20,523,425
 1.24 % N
Lithium Technologies, LLC First Revolver LIBOR (Q) 1.00% 8.00% 10.35% 10/3/2022 $—
 (27,607) (26,437) —
 K/N
Team Software, Inc. First Lien Revolver LIBOR (Q) —
 5.50% 7.88% 9/17/2023 $—
 (52,262) (52,668) —
 K/N
Team Software, Inc. First Lien Term Loan LIBOR (Q) —
 5.50% 7.88% 9/17/2023 $13,167,038
 12,970,849
 12,969,533
 0.79 % N
Tradeshift Holdings, Inc. First Lien Delayed Draw Term Loan (7.0% Exit Fee) LIBOR (Q) —
 8.88% 11.25% 9/1/2020 $19,117,528
 18,638,975
 19,106,517
 1.16 % L/N
Utilidata, Inc. First Lien Delayed Draw Term Loan (4.0% Exit Fee) LIBOR (Q) —
 9.88% 12.19% 6/1/2019 $2,093,398
 2,080,236
 2,086,908
 0.13 % L/N
Xactly Corporation First Lien Incremental Term Loan LIBOR (M) 1.00% 7.25% 9.50% 7/31/2022 $2,726,918
 2,678,325
 2,725,555
 0.17 % N
Xactly Corporation First Lien Term Loan LIBOR (M) 1.00% 7.25% 9.50% 7/31/2022 $16,397,517
 16,134,619
 16,389,318
 0.99 % N
Xactly Corporation Sr Secured Revolver LIBOR (M) 1.00% 7.25% 9.50% 7/31/2022 $—
 (21,587) (703) —
 K/N
                279,852,983
 281,194,122
 17.06 %  
                       
Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)      
Diversified Software (continued)        
Certify, Inc. First Lien Delayed Draw Term Loan LIBOR (M) 1.00% 5.75% 8.15% 2/28/2024 $531,438
 $483,615
 $485,522
 0.03% N
Certify, Inc. First Lien Term Loan LIBOR (M) 1.00% 5.75% 8.15% 2/28/2024 $23,383,293
 23,285,407
 23,046,573
 1.35% N
Certify, Inc. Sr Secured Revolver LIBOR (M) 1.00% 5.75% 8.15% 2/28/2024 $—
 (15,943) (15,305) —
 K/N
DealerFX, Inc. First Lien Term Loan LIBOR (Q) —
 6.25% Cash+2.00% PIK
 10.63% 2/1/2023 $16,096,320
 15,855,682
 16,292,695
 0.95% N
Dude Solutions Holdings, Inc. First Lien Term Loan LIBOR (M) 1.00% 7.00% 9.40% 6/14/2025 $16,927,201
 16,547,284
 16,546,339
 0.97% N
Dude Solutions Holdings, Inc. Sr Secured Revolver LIBOR (M) 1.00% 7.00% 9.40% 6/14/2025 $618,211
 568,843
 568,533
 0.03% N
ECI Macola/Max Holding, LLC Second Lien Term Loan LIBOR (Q) 1.00% 8.00% 10.33% 9/19/2025 $24,840,563
 24,648,574
 24,623,208
 1.44%  
FinancialForce.com First Lien Delayed Draw Term Loan (3.0% Exit Fee) LIBOR (Q) —
 6.75% 9.31% 2/1/2024 $21,000,000
 20,483,575
 21,196,000
 1.24% L/N
Fishbowl, Inc. First Lien Term Loan LIBOR (Q) —
 2.80% Cash+8.45% PIK
 15.63% 1/26/2022 $23,304,557
 22,936,853
 21,471,653
 1.25% N
iCIMS, Inc. First Lien Term Loan LIBOR (M) 1.00% 6.50% 8.90% 9/12/2024 $9,482,016
 9,305,976
 9,293,324
 0.54% N
iCIMS, Inc. Sr Secured Revolver LIBOR (M) 1.00% 6.50% 8.90% 9/12/2024 $—
 (8,513) (9,766) —
 K/N
JAMF Holdings, Inc. First Lien Term Loan LIBOR (Q) 1.00% 7.00% 9.53% 11/13/2022 $14,160,797
 13,954,203
 14,160,797
 0.83% N
JAMF Holdings, Inc. Sr Secured Revolver LIBOR (M) 1.00% 7.00% 9.41% 11/13/2022 $809,368
 792,840
 809,368
 0.05% N
JAMF Holdings, Inc. First Lien Incremental Term Loan LIBOR (Q) 1.00% 7.00% 9.53% 11/13/2022 $3,606,829
 3,558,243
 3,606,829
 0.21% N
Khoros, LLC (Lithium) First Lien Term Loan LIBOR (Q) 1.00% 8.00% 10.46% 10/3/2022 $20,884,731
 20,571,230
 20,627,849
 1.21% N
Khoros, LLC (Lithium) Sr Secured Revolver LIBOR (Q) 1.00% 8.00% 10.46% 10/3/2022 $—
 (22,476) (18,796) —
 K/N
Khoros, LLC (Lithium) First Lien Incremental Term Loan LIBOR (Q) 1.00% 8.00% 10.46% 10/3/2022 $7,131,905
 6,997,747
 7,044,183
 0.41% N
Khoros, LLC (Lithium) Sr Secured Revolver LIBOR (Q) 1.00% 8.00% 10.46% 10/3/2022 $—
 (8,342) (5,599) —
 K/N
Quartz Holding Company (Quick Base) Second Lien Term Loan LIBOR (M) —
 8.00% 10.44% 4/2/2027 $9,903,019
 9,707,918
 9,952,534
 0.58% N
Rhode Holdings, Inc. (Kaseya) First Lien Delayed Draw Term Loan LIBOR (M) 1.00% 6.50% 8.94% 5/3/2025 $—
 (33,547) (34,463) —
 K/N
Rhode Holdings, Inc. (Kaseya) First Lien Term Loan LIBOR (M) 1.00% 5.50% Cash+1.00% PIK
 8.94% 5/3/2025 $14,314,408
 14,033,860
 14,028,120
 0.82% N
Rhode Holdings, Inc. (Kaseya) Sr Secured Revolver LIBOR (M) 1.00% 6.50% 8.94% 5/3/2025 $—
 (23,483) (24,124) —
 K/N
Space Midco, Inc. (Archibus) First Lien Term Loan LIBOR (Q) —
 6.25% 8.69% 12/5/2023 $4,444,444
 4,364,679
 4,337,333
 0.25% N
Space Midco, Inc. (Archibus) Sr Secured Revolver LIBOR (Q) —
 6.25% 8.69% 12/5/2023 $—
 (4,927) (6,694) —
 K/N
Sphera Solutions, Inc. (Diamondback) First Lien FILO Term Loan B LIBOR (Q) 1.00% 8.52% 10.72% 6/14/2021 $21,229,624
 20,830,056
 21,047,049
 1.23% N
Team Software, Inc. First Lien Revolver LIBOR (Q) —
 5.50% 7.88% 9/17/2023 $1,404,484
 1,359,747
 1,357,785
 0.08% N
Team Software, Inc. First Lien Term Loan LIBOR (Q) —
 5.50% 7.88% 9/17/2023 $13,167,038
 12,996,904
 12,991,917
 0.76% N
Telarix, Inc. First Lien Term Loan LIBOR (M) 1.00% 6.00% 8.41% 11/19/2023 $7,481,250
 7,379,659
 7,411,674
 0.43% N
Telarix, Inc. Sr Secured Revolver LIBOR (M) 1.00% 6.00% 8.41% 11/19/2023 $—
 (4,701) (3,321) —
 K/N
Tradeshift Holdings, Inc. First Lien Delayed Draw Term Loan (7.0% Exit Fee) LIBOR (Q) —
 8.88% 11.44% 9/1/2020 $19,117,528
 18,821,496
 18,748,025
 1.10% L/N
Unanet, Inc. First Lien Delayed Draw Term Loan LIBOR (M) —
 6.25% 8.69% 5/31/2021 $—
 —
 (76,531) —
 K/N
Unanet, Inc. Sr Secured Revolver LIBOR (M) —
 6.25% 8.69% 5/31/2024 $—
 (24,071) (24,490) —
 K/N
Unanet, Inc. First Lien Term Loan LIBOR (M) —
 6.25% 8.69% 5/31/2024 $19,897,959
 19,701,856
 19,698,980
 1.15% N
Utilidata, Inc. First Lien Delayed Draw Term Loan (4.0% Exit Fee) LIBOR (Q) —
 9.88% 12.50% 12/31/2019 $1,393,398
 1,382,016
 1,187,384
 0.07% L/N
Xactly Corporation First Lien Incremental Term Loan LIBOR (M) 1.00% 7.25% 9.66% 7/31/2022 $2,726,918
 2,687,452
 2,700,603
 0.16% N
Xactly Corporation First Lien Incremental Term Loan B LIBOR (M) 1.00% 7.25% 9.66% 7/31/2022 $4,996,644
 4,900,901
 4,948,426
 0.29% N
Xactly Corporation First Lien Term Loan LIBOR (M) 1.00% 7.25% 9.66% 7/31/2022 $16,397,517
 16,184,666
 16,239,281
 0.95% N
Xactly Corporation Sr Secured Revolver LIBOR (M) 1.00% 7.25% 9.66% 7/31/2022 $—
 (17,387) (13,563) —
 K/N
                419,917,609
 421,828,196
 24.67%  
                       
                       
                       
                       
                       

5




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

SeptemberJune 30, 20182019



Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)
Debt Investments (continued)
                      
Educational Support ServicesEducational Support Services     Educational Support Services     
Edmentum, Inc. First Lien Term Loan B Fixed —
 8.50% 8.50% 6/9/2021 $6,142,141
 $5,155,348
 $6,142,144
 0.37 % B/N Jr Revolving Facility Fixed —
 5.00% 5.00% 6/9/2020 $5,320,228
 $5,320,228
 $5,320,233
 0.31% B/N
Edmentum, Inc. Junior Revolving Facility Fixed —
 5.00% 5.00% 6/9/2020 $107,755
 107,755
 107,760
 0.01 % B/N Sr Unsecured Promissory Note Fixed —
 10.00% 10.00% 9/30/2019 $3,644,068
 3,623,080
 3,644,068
 0.21% B/N
Edmentum, Inc. Second Lien Term Loan Fixed —
 7.00% PIK
 7.00% 12/8/2021 $7,583,403
 7,583,403
 7,583,410
 0.46 % B/N First Lien Term Loan B Fixed —
 8.50% 8.50% 6/9/2021 $8,924,677
 7,769,444
 8,924,677
 0.52% B/N
Edmentum, Inc. Second Lien Term Loan Fixed —
 7.00% PIK
 7.00% 12/8/2021 $7,993,119
 7,993,119
 7,993,127
 0.47% B/N
Edmentum Ultimate Holdings, LLC Sr PIK Notes Fixed —
 8.50% 8.50% 6/9/2020 $3,303,690
 3,303,690
 3,303,690
 0.20 % B/N Sr PIK Notes Fixed —
 8.50% PIK
 8.50% 6/9/2020 $3,521,248
 3,521,248
 3,521,248
 0.21% B/N
Edmentum Ultimate Holdings, LLC Jr PIK Notes Fixed —
 10.00% 10.00% 6/9/2020 $15,534,546
 15,264,741
 10,874,182
 0.66 % B/N Jr PIK Notes Fixed —
 10.00% PIK
 10.00% 6/9/2020 $16,742,608
 16,588,829
 13,394,086
 0.78% B/N
Educationcity Limited (Edmentum) Sr Unsecured Promissory Note Fixed —
 10.00% 10.00% 9/30/2019 $1,457,627
 1,449,232
 1,457,627
 0.09% B/N
         31,414,937
 28,011,186
 1.70 %          46,265,180
 44,255,066
 2.59% 
Electronic Component ManufacturingElectronic Component Manufacturing     Electronic Component Manufacturing       
Adesto Technologies Corporation First Lien Term Loan LIBOR (S) 1.00% 8.75% 11.19% 5/8/2022 $17,966,081
 16,845,325
 17,157,607
 1.04 % N First Lien Term Loan LIBOR (Q) 1.00% 8.75% 11.13% 5/8/2022 $17,367,272
 16,470,304
 16,707,315
 0.98% N
Soraa, Inc. Tranche A Term Loan (4.33% Exit Fee) LIBOR (Q) 0.44% 9.33% 11.65% 12/31/2018 $7,570,571
 7,566,324
 7,593,283
 0.46 % L/N
Soraa, Inc. Tranche B Term Loan LIBOR (Q) 0.44% 9.33% 11.65% 12/31/2018 $1,603,779
 1,603,779
 1,575,713
 0.10 % N Tranche A Term Loan (4.33% Exit Fee) LIBOR (Q) 0.44% 9.33% 11.90% 12/31/2019 $2,574,367
 2,555,309
 2,441,788
 0.14% L/N
         26,015,428
 26,326,603
 1.60 %          19,025,613
 19,149,103
 1.12% 
Equipment LeasingEquipment Leasing     Equipment Leasing       
36th Street Capital Partners Holdings, LLC Senior Note Fixed —
 12.00% 12.00% 11/1/2020 $28,434,419
 28,434,419
 28,434,418
 1.72 % E/F/N Senior Note Fixed —
 12.00% 12.00% 11/1/2020 $28,593,169
 28,593,169
 28,593,169
 1.66% E/F/N
                              
Financial Investment ActivitiesFinancial Investment Activities     Financial Investment Activities       
Aretec Group, Inc. (Cetera) Second Lien Term Loan LIBOR (Q) —
 8.25% 10.57% 8/15/2026 $27,105,263
 26,834,210
 27,173,026
 1.65 % N Second Lien Term Loan LIBOR (M) —
 8.25% 10.65% 10/1/2026 $27,105,263
 26,844,698
 26,664,802
 1.56% 
Credit Suisse AG (Cayman Islands) Asset-Backed Credit Linked Notes LIBOR (Q) —
 9.50% 11.80% 4/12/2025 $38,000,000
 38,000,000
 38,026,600
 2.30 % H/I/N Asset-Backed Credit Linked Notes LIBOR (M) —
 9.50% 11.97% 4/12/2025 $38,000,000
 38,000,000
 37,471,800
 2.19% H/I/N
HighTower Holding, LLC Second Lien Delayed Draw Term Loan LIBOR (M) 1.00% 8.25% 10.37% 1/31/2026 $—
 (127,317) (135,726) (0.01)% K/N Second Lien Delayed Draw Term Loan LIBOR (M) 1.00% 8.25% 10.67% 1/31/2026 $6,169,355
 6,055,443
 6,179,226
 0.36% N
HighTower Holding, LLC Second Lien Term Loan LIBOR (M) 1.00% 8.25% 10.37% 1/31/2026 $15,080,645
 14,689,595
 14,748,871
 0.89 % N Second Lien Term Loan LIBOR (M) 1.00% 8.25% 10.66% 1/31/2026 $15,080,645
 14,717,958
 15,104,774
 0.88% N
Institutional Shareholder Services, Inc. Second Lien Term Loan LIBOR (Q) 1.00% 7.75% 10.14% 10/16/2025 $4,333,333
 4,314,079
 4,376,667
 0.27 % N Second Lien Term Loan LIBOR (Q) —
 8.50% 10.83% 3/5/2026 $5,820,856
 5,650,921
 5,806,304
 0.34% N
         83,710,567
 84,189,438
 5.10 %          91,269,020
 91,226,906
 5.33% 
Ground TransportationGround Transportation       
Florida East Coast Industries, LLC First Lien Term Loan B LIBOR (M) —
 6.50% 8.89% 12/13/2021 $2,559,542
 2,516,982
 2,533,946
 0.15% N
GlobalTranz Enterprises LLC Second Lien Term Loan LIBOR (M) 1.00% 8.25% 10.64% 5/15/2027 $19,382,324
 18,994,678
 18,994,678
 1.11% N
         21,511,660
 21,528,624
 1.26% 
Health CareHealth Care     Health Care 
 
 
 
CAREATC, Inc. First Lien Term Loan LIBOR (M) —
 7.25% 9.68% 3/14/2024 $8,502,033
 8,337,996
 8,342,195
 0.49% N
CAREATC, Inc. Sr Secured Revolver LIBOR (M) —
 7.25% 9.68% 3/14/2024 $—
 (11,431) (11,417) —
 K/N
Pacific Coast Holdings Investment, LLC (KPC Healthcare) First Lien Term Loan LIBOR (M) 1.00% 7.50% 9.74% 2/14/2021 $29,288,064
 29,013,198
 30,043,696
 1.82 % N First Lien Term Loan LIBOR (M) 1.00% 7.50% 9.90% 2/14/2021 $29,288,064
 29,103,029
 29,727,385
 1.74% N
                        37,429,594
 38,058,163
 2.23% 
InsuranceInsurance     Insurance       
Association Member Benefits Advisors, LLC Second Lien Term Loan LIBOR (M) 1.00% 8.75% 10.98% 6/8/2023 $8,277,983
 8,153,254
 8,043,716
 0.49 % N
2-10 Holdco, Inc. First Lien Term Loan LIBOR (M) —
 6.25% 8.69% 10/31/2024 $4,560,417
 4,478,890
 4,497,939
 0.26% N
2-10 Holdco, Inc. Sr Secured Revolver LIBOR (M) —
 6.25% 8.69% 10/31/2024 $—
 (7,413) (5,708) —
 K/N
Higginbotham Insurance Agency, Inc. Second Lien Term Loan LIBOR (M) 1.00% 7.25% 9.49% 12/19/2025 $16,417,578
 16,310,823
 16,335,490
 0.99 % N Second Lien Term Loan LIBOR (M) 1.00% 7.50% 9.90% 12/19/2025 $35,000,000
 34,761,985
 34,868,750
 2.04% N
IAS Investco, Inc. First Lien Delayed Draw Term Loan A LIBOR (M) 1.00% 5.50% 7.90% 1/24/2021 $5,464,286
 5,434,064
 5,440,789
 0.32% N
IAS Investco, Inc. First Lien Delayed Draw Term Loan A LIBOR (M) 1.00% 5.50% 7.74% 1/24/2021 $5,682,857
 5,638,858
 5,671,491
 0.34 % N First Lien Delayed Draw Term Loan B LIBOR (M) 1.00% 5.50% 7.90% 1/24/2021 $1,714,286
 1,705,649
 1,706,914
 0.10% N
IAS Investco, Inc. First Lien Delayed Draw Term Loan B LIBOR (M) 1.00% 5.50% 7.74% 1/24/2021 $—
 (12,846) (3,429) —
 K/N First Lien Term Loan LIBOR (M) 1.00% 5.50% 7.90% 1/24/2021 $4,045,299
 4,022,875
 4,027,904
 0.24% N
IAS Investco, Inc. First Lien Term Loan LIBOR (M) 1.00% 5.50% 7.74% 1/24/2021 $4,234,286
 4,201,426
 4,225,817
 0.26 % N First Lien Incremental Term Loan LIBOR (M) 1.00% 5.50% 7.90% 1/24/2021 $6,190,013
 6,164,542
 6,163,396
 0.36% N
US Apple Holdco, LLC (Ventiv Technology) First Lien FILO Term Loan LIBOR (Q) 0.50% 13.62% 15.94% 8/29/2019 $20,121,212
 19,938,486
 20,121,212
 1.22 % N First Lien FILO Term Loan LIBOR (Q) 1.00% 7.96% 10.57% 8/15/2020 $20,166,667
 20,134,501
 20,138,433
 1.18% N
US Apple Holdco, LLC (Ventiv Technology) First Lien Incremental Tranche B FILO Term Loan LIBOR (Q) 0.50% 13.62% 16.01% 8/29/2019 $4,350,600
 4,312,024
 4,350,600
 0.26 % N First Lien Incremental Tranche B FILO Term Loan LIBOR (Q) 1.00% 7.96% 10.59% 8/15/2020 $4,381,200
 4,353,294
 4,375,066
 0.26% N
US Apple Holdco, LLC (Ventiv Technology) First Lien Incremental Tranche B FILO Term Loan LIBOR (Q) 1.00% 7.00% 9.63% 8/15/2020 $12,000,000
 11,962,661
 11,983,200
 0.70% N
         58,542,025
 58,744,897
 3.56 %          93,011,048
 93,196,683
 5.46% 
Lessors of Nonfinancial Licenses     
ABG Intermediate Holdings 2, LLC (Authentic Brands) Second Lien Term Loan LIBOR (M) 1.00% 7.75% 9.99% 9/29/2025 $15,000,000
 14,897,537
 15,131,250
 0.92 % 
Kenneth Cole Productions, Inc. First Lien FILO Term Loan LIBOR (M) 1.00% 9.65% 11.90% 3/21/2022 $29,572,309
 29,349,777
 29,397,833
 1.78 % N
         44,247,314
 44,529,083
 2.70 % 
               
               
               
               
               

6




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

SeptemberJune 30, 20182019



Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)Debt Investments (continued)       Debt Investments (continued)     
Lessors of Nonfinancial LicensesLessors of Nonfinancial Licenses       
ABG Intermediate Holdings 2, LLC (Authentic Brands) Second Lien Term Loan LIBOR (M) 1.00% 7.75% 10.15% 9/29/2025 $14,711,567
 $14,615,236
 $14,573,646
 0.85% 
Kenneth Cole Productions, Inc. First Lien FILO Term Loan LIBOR (M) 1.00% 7.75% 10.25% 12/28/2023 $24,139,968
 23,980,718
 24,115,828
 1.41% N
PSEB, LLC (Eddie Bauer) First Lien FILO II Term Loan Prime —
 7.25% 12.75% 10/12/2023 $10,793,402
 10,530,662
 10,503,599
 0.61% N
PSEB, LLC (Eddie Bauer) First Lien Term Loan LIBOR (Q) 1.50% 8.00% 10.58% 10/12/2023 $40,857,522
 39,869,101
 39,846,299
 2.33% N
         88,995,717
 89,039,372
 5.20% 
Management, Scientific, and Technical Consulting ServicesManagement, Scientific, and Technical Consulting Services     Management, Scientific, and Technical Consulting Services       
Asentinel, LLC (Tangoe) First Lien Last Out Term Loan LIBOR (S) 1.00% 10.77%Cash+0.50% PIK
 13.76% 6/16/2022 $24,219,476
 $23,435,646
 $24,025,720
 1.46 % N
Dodge Data & Analytics, LLC First Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 7.00% 9.31% 5/1/2020 $—
 (2,226) (2,400) —
 K/N First Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 7.00% 9.63% 5/1/2020 $908,679
 907,742
 908,677
 0.05% N
Dodge Data & Analytics, LLC First Lien Term Loan LIBOR (Q) 1.00% 7.00% 9.31% 5/1/2020 $39,243,446
 39,145,781
 39,145,338
 2.37 % N First Lien Term Loan LIBOR (Q) 1.00% 7.00% 9.63% 5/1/2020 $36,757,364
 36,717,210
 36,757,364
 2.15% N
         62,579,201
 63,168,658
 3.83 %          37,624,952
 37,666,041
 2.20% 
Metal ManufacturingMetal Manufacturing     Metal Manufacturing       
Neenah Foundry Company First Lien Term Loan B LIBOR (Q) —
 6.50% 8.79% 12/13/2022 $5,652,336
 5,600,727
 5,624,075
 0.34 % N First Lien Term Loan B LIBOR (Q) —
 6.50% 8.98% 12/13/2022 $5,081,309
 5,041,758
 5,030,496
 0.28% N
                              
Motion Picture and Video IndustriesMotion Picture and Video Industries     Motion Picture and Video Industries       
NEG Holdings, LLC (CORE Entertainment, Inc.) First Lien Term Loan LIBOR (Q) 1.00% 8.00% PIK
 10.39% 10/17/2022 $1,532,537
 1,532,537
 1,532,537
 0.09 % B/N First Lien Term Loan LIBOR (Q) 1.00% 8.00% PIK
 10.33% 10/17/2022 $1,658,962
 1,658,961
 1,658,963
 0.09% B/N
                              
Other Information ServicesOther Information Services     Other Information Services       
Discoverorg, LLC Second Lien Incremental Term Loan LIBOR (M) 1.00% 8.50% 10.75% 2/26/2024 $3,419,277
 3,403,838
 3,419,277
 0.21 % N Second Lien Term Loan LIBOR (M) —
 8.50% 10.90% 2/1/2027 $25,000,000
 24,650,493
 24,781,250
 1.45% 
Discoverorg, LLC Second Lien Term Loan LIBOR (M) 1.00% 8.50% 10.75% 2/26/2024 $12,839,252
 12,735,631
 12,839,252
 0.78 % N
Gladson, LLC First Lien Incremental Term Loan LIBOR (M) 1.00% 6.50% 8.74% 1/25/2023 $577,225
 566,122
 573,184
 0.03 % N
Gladson, LLC First Lien Term Loan LIBOR (M) 1.00% 6.50% 8.74% 1/25/2023 $9,395,937
 9,306,971
 9,330,166
 0.57 % N
Quora, Inc. First Lien Term Loan (4.0% Exit Fee) Fixed —
 10.10% 10.10% 5/1/2022 $12,692,602
 12,510,028
 12,500,431
 0.73% L/N
         26,012,562
 26,161,879
 1.59 %          37,160,521
 37,281,681
 2.18% 
Other ManufacturingOther Manufacturing     Other Manufacturing       
AGY Holding Corp. Sr Secured Term Loan Fixed —
 12.00% 12.00% 5/18/2020 $4,869,577
 4,869,577
 4,869,577
 0.30 % B/N Sr Secured Term Loan Fixed —
 12.00% 12.00% 5/18/2020 $4,869,577
 4,869,577
 4,869,577
 0.28% B/N
AGY Holding Corp. Second Lien Notes Fixed —
 11.00% 11.00% 11/15/2020 $9,777,740
 8,096,057
 9,777,740
 0.59 % B/E/N Second Lien Notes Fixed —
 11.00% 11.00% 11/15/2020 $10,315,515
 8,633,832
 10,153,561
 0.59% B/E/N
AGY Holding Corp. Delayed Draw Term Loan Fixed —
 12.00% 12.00% 5/18/2020 $1,049,146
 1,049,146
 1,049,146
 0.06 % B/N Delayed Draw Term Loan Fixed —
 12.00% 12.00% 5/18/2020 $1,049,146
 1,049,146
 1,049,146
 0.06% B/N
         14,014,780
 15,696,463
 0.95 %          14,552,555
 16,072,284
 0.93% 
Other Real Estate ActivitiesOther Real Estate Activities     Other Real Estate Activities       
Greystone Select Holdings, LLC First Lien Term Loan LIBOR (M) 1.00% 8.00% 10.20% 4/17/2024 $25,139,542
 24,927,717
 25,839,678
 1.57 % N First Lien Term Loan LIBOR (Q) 1.00% 8.00% 10.52% 4/17/2024 $24,951,467
 24,782,103
 25,700,011
 1.50% N
         

 

 

                
Other TelecommunicationsOther Telecommunications     Other Telecommunications       
Securus Technologies, Inc. Second Lien Term Loan LIBOR (M) 1.00% 8.25% 10.49% 11/1/2025 $25,846,154
 25,637,439
 25,922,917
 1.57 %  Second Lien Term Loan LIBOR (Q) 1.00% 8.25% 10.58% 11/1/2025 $25,846,154
 25,648,884
 24,101,538
 1.41% 
                              
PharmaceuticalsPharmaceuticals     Pharmaceuticals       
P&L Development, LLC First Lien Term Loan LIBOR (Q) 1.00% 8.00% 10.34% 5/18/2022 $490,893
 490,893
 463,305
 0.03 % N First Lien Term Loan LIBOR (Q) 2.00% 7.50% 9.84% 6/30/2024 $10,000,000
 9,750,000
 9,750,000
 0.57% N
                              
Plastics ManufacturingPlastics Manufacturing     Plastics Manufacturing       
Iracore International, Inc. First Lien Term Loan LIBOR (M) 1.00% 9.00% 11.25% 4/13/2021 $1,900,733
 1,900,733
 1,900,733
 0.12 % B/N First Lien Term Loan LIBOR (M) 1.00% 9.00% 11.50% 4/13/2021 $1,900,733
 1,900,733
 1,900,733
 0.11% B/N
                              
PublishingPublishing     Publishing 

 

 

 
Bisnow, LLC First Lien Revolver LIBOR (Q) —
 7.50% 10.06% 9/21/2022 $—
 (14,966) (2,400) —
 K/N First Lien Revolver LIBOR (Q) —
 7.50% 10.13% 9/21/2022 $—
 (12,154) —
 —
 K/N
Bisnow, LLC First Lien Term Loan LIBOR (Q) —
 7.50% 9.88% 9/21/2022 $11,520,287
 11,352,915
 11,497,246
 0.70 % N First Lien Term Loan LIBOR (Q) —
 7.50% 10.13% 9/21/2022 $10,881,394
 10,750,982
 10,930,361
 0.64% N
Patient Point Network Solutions, LLC First Lien Term Loan LIBOR (M) 1.00% 7.50% 10.04% 6/26/2022 $6,827,354
 6,757,138
 6,873,098
 0.42 % N First Lien Term Loan LIBOR (Q) 1.00% 7.50% 9.83% 6/26/2022 $6,608,073
 6,555,062
 6,608,073
 0.39% N
Patient Point Network Solutions, LLC Sr Secured Revolver LIBOR (M) 1.00% 7.50% 10.04% 6/26/2022 $264,285
 260,008
 264,285
 0.02 % N Sr Secured Revolver Prime 1.00% 6.50% 12.00% 6/26/2022 $176,190
 172,751
 176,190
 0.01% N
         18,355,095
 18,632,229
 1.14 % 
Radio and Television Broadcasting     
NEP/NCP Holdco, Inc. Second Lien Term Loan LIBOR (M) 1.00% 7.00% 9.15% 1/23/2023 $11,536,391
 11,518,541
 11,579,652
 0.70 % G
               
Real Estate Leasing     
Daymark Financial Acceptance, LLC First Lien Delayed Draw Term Loan LIBOR (M) —
 9.50% 11.75% 1/12/2020 $14,000,000
 13,932,260
 13,976,900
 0.85 % N
Home Partners of America, Inc. First Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 6.25% 8.65% 10/13/2022 $—
 —
 64,286
 —
 N
Home Partners of America, Inc. First Lien Term Loan LIBOR (M) 1.00% 6.25% 8.49% 10/13/2022 $2,857,143
 2,815,833
 2,900,000
 0.18 % N
Patient Point Network Solutions, LLC First Lien Incremental Term Loan LIBOR (Q) 1.00% 7.50% 9.83% 6/26/2022 $1,273,610
 1,260,963
 1,276,285
 0.07% N
         16,748,093
 16,941,186
 1.03 %          18,727,604
 18,990,909
 1.11% 
                              

7




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

September 30, 2018


Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)        
Restaurants      
RM OpCo, LLC (Real Mex) Convertible Second Lien Term Loan Tranche B-1 Fixed —
 8.50% 0.00% 3/30/2018 $2,210,269
 $2,210,269
 $—
 —
 B/C/N
RM OpCo, LLC (Real Mex) First Lien Term Loan Tranche A Fixed —
 7.00% 7.00% 3/30/2018 $5,169,540
 4,886,154
 5,169,556
 0.31 % B/N
RM OpCo, LLC (Real Mex) First Out Term Loan Tranche A Fixed —
 7.00% 7.00% 3/30/2018 $1,422,397
 1,411,520
 1,422,397
 0.09 % B/N
RM OpCo, LLC (Real Mex) Second Lien Term Loan Tranche B Fixed —
 8.50% 0.00% 3/30/2018 $10,398,622
 10,398,622
 —
 —
 B/C/N
RM OpCo, LLC (Real Mex) Second Lien Term Loan Tranche B-1 Fixed —
 8.50% 0.00% 3/30/2018 $3,468,374
 3,452,951
 —
 —
 B/C/N
RM OpCo, LLC (Real Mex) Sr Convertible Second Lien Term Loan B Fixed —
 8.50% 0.00% 3/30/2018 $7,568,193
 7,568,193
 101,035
 0.01 % B/C/N
RM OpCo, LLC (Real Mex) Super Priority Debtor-in-Possession Term Loan Fixed —
 8.50% 8.50% 12/15/2018 $720,500
 712,034
 720,500
 0.04 % B/N
                30,639,743
 7,413,488
 0.45 %  
Retail      
USR Parent, Inc. (Staples) First Lien FILO Term Loan LIBOR (M) 1.00% 8.84% 10.92% 9/12/2022 $11,149,443
 10,917,823
 11,149,443
 0.68 % N
                       
Satellite Telecommunications      
Avanti Communications Group, PLC (United Kingdom) Sr New Money Initial Note Fixed —
 9.00% 12.00% 10/1/2022 $1,455,270
 1,420,798
 1,102,367
 0.07 % E/G/H/N
Avanti Communications Group, PLC (United Kingdom) Sr Second-Priority PIK Toggle Note Fixed —
 9.00% 12.00% 10/1/2022 $3,713,440
 3,628,201
 2,812,931
 0.17 % E/G/H/N
                5,048,999
 3,915,298
 0.24 %  
Scientific Research and Development Services      
Envigo Holdings, Inc. (United Kingdom) First Lien Term Loan LIBOR (Q) —
 5.75% 10.14% 4/29/2020 $1,857,267
 1,729,512
 1,792,262
 0.11 % H/N
Envigo Holdings, Inc. (United Kingdom) Second Lien Term Loan LIBOR (Q) —
 7.75% 10.14% 4/29/2020 $4,189,589
 2,787,441
 3,938,213
 0.24 % H/N
Envigo Holdings, Inc. (United Kingdom) First Lien Term Loan LIBOR (Q) 1.00% 8.50% 10.84% 11/3/2021 $34,581,810
 34,132,487
 34,733,105
 2.10 % G/H/N
                38,649,440
 40,463,580
 2.45 %  
Traveler Arrangement      
CIBT Solutions, Inc. Second Lien Term Loan LIBOR (Q) 1.00% 7.75% 10.14% 6/1/2025 $7,611,914
 7,543,092
 7,611,914
 0.46 % G
                       
Utility System Construction      
Conergy Asia & ME Pte. Ltd (Singapore) First Lien Term Loan Fixed —
 10.00% 10.00% 5/26/2020 $1,773,807
 1,773,807
 1,773,808
 0.11 % F/H/N
GlassPoint Solar, Inc. First Lien Term Loan (4.0% Exit Fee) LIBOR (Q) —
 8.50% 10.88% 8/1/2020 $6,167,814
 6,109,125
 6,037,057
 0.37 % L/N
GlassPoint Solar, Inc. First Lien Term Loan (5.0% Exit Fee) LIBOR (Q) —
 11.44% 13.81% 8/1/2020 $3,338,282
 3,144,704
 3,341,620
 0.20 % L/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Bank Guarantee Credit Facility LIBOR (Q) —
 8.00% PIK
 10.34% 5/26/2020 $14,709,305
 14,709,305
 14,709,305
 0.89 % F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Revolving Credit Facility Fixed —
 —
 0.00% 5/26/2020 $8,115,517
 8,115,517
 1,983,838
 0.12 % C/F/H/N
                33,852,458
 27,845,628
 1.69 %  
Wholesalers      
FreePoint Commodities, LLC Second Lien Term Loan LIBOR (M) 1.00% 8.25% 10.40% 6/13/2023 $15,000,000
 14,850,794
 14,863,500
 0.90 % N
                       
Wired Telecommunications Carriers      
American Broadband Holding Company First Lien Term Loan LIBOR (Q) 1.25% 7.75% 10.09% 10/25/2022 $17,777,518
 17,409,068
 17,516,188
 1.06 % N
TPC Intermediate Holdings, LLC First Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 6.00% 8.39% 5/15/2023 $809,735
 790,855
 793,538
 0.05 % N
                18,199,923
 18,309,726
 1.11 %  
                       
Total Debt Investments 1,515,398,761
 1,476,321,274
 89.45 %  

8




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

SeptemberJune 30, 20182019



Issuer Instrument         Expiration Shares Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Equity Securities                      
Advertising, Public Relations and Marketing
Foursquare Labs, Inc. Warrants to Purchase Series E Preferred Stock         5/4/2027 1,125,000
 $185,450
 $162,788
 0.01% C/E/N
InMobi, Inc. (Singapore) Warrants to Purchase Common Stock         9/18/2025 1,327,869
 212,360
 205,289
 0.01% C/E/H/N
InMobi, Inc. (Singapore) Warrants to Purchase Series E Preferred Stock         8/15/2027 1,049,996
 276,492
 479,638
 0.03% C/E/H/N
                674,302
 847,715
 0.05%  
Air Transportation
Aircraft Leased to United Airlines, Inc.                    
United N659UA-767, LLC (N659UA) Trust Beneficial Interests           683
 2,617,734
 2,921,471
 0.18% E/F/N
United N661UA-767, LLC (N661UA) Trust Beneficial Interests           688
 2,704,898
 2,992,769
 0.18% E/F/N
Epic Aero, Inc (One Sky) Warrants to Purchase Common Stock         12/4/2018 1,843
 855,313
 4,773,297
 0.29% C/E/N
                6,177,945
 10,687,537
 0.65%  
Business Support Services
Findly Talent, LLC Membership Units           708,229
 230,938
 60,908
 —
 C/E/N
STG-Fairway Holdings, LLC (First Advantage) Class A Units           803,961
 325,432
 2,151,721
 0.13% C/E/N
                556,370
 2,212,629
 0.13%  
Chemicals
Green Biologics, Inc. Preferred Stock           75,149
 —
 —
 —
 C/E/N
Green Biologics, Inc. Warrants to Purchase Stock         10/1/2021 909,300
 272,807
 —
 —
 C/E/N
Nanosys, Inc. Warrants to Purchase Preferred Stock         3/29/2023 800,000
 605,266
 820,720
 0.05% C/E/N
                878,073
 820,720
 0.05%  
Communications Equipment Manufacturing
HCT Acquisition, LLC (Globecomm) Membership Units           8
 531,576
 —
 —
 B/C/N
                       
Computer Systems Design and Related Services
Fidelis Topco LP Warrants to Purchase Series A Preferred Unites         7/20/2028 21,888,917
 —
 1,637,291
 0.10% C/E/N
Fidelis Topco LP Warrants to Purchase Series B Preferred Unites         7/20/2028 24,972,917
 —
 1,867,974
 0.11% C/E/N
                —
 3,505,265
 0.21%  
Data Processing and Hosting Services
Anacomp, Inc. Class A Common Stock           1,255,527
 26,711,048
 1,418,746
 0.09% C/E/F/N
Domo, Inc. Warrants to Purchase Common Stock         12/30/2027 33,993
 264,624
 129,313
 0.01% C/E/N
Snaplogic, Inc. Warrants to Purchase Series Preferred Stock         3/19/2028 1,260,000
 169,402
 437,472
 0.03% C/E/N
                27,145,074
 1,985,531
 0.13%  
Diversified Software
Actifio, Inc. Warrants to Purchase Series G Preferred Stock         5/5/2027 1,052,651
 188,770
 437,482
 0.03% C/E/N
Tradeshift, Inc. Warrants to Purchase Series D Preferred Stock         3/26/2027 1,712,930
 577,843
 589,077
 0.04% C/E/N
Utilidata, Inc. Warrants to Purchase Preferred Stock         12/22/2022 719,998
 216,336
 88,488
 0.01% C/E/N
                982,949
 1,115,047
 0.08%  
Educational Support Services
Edmentum Ultimate Holdings, LLC Class A Common Units           159,515
 680,226
 —
 —
 B/C/E/N
Edmentum Ultimate Holdings, LLC Warrants to Purchase Class A Units         2/23/2028 788,112
 —
 —
 —
 B/C/E/N
                680,226
 —
 —
  
                       
                       
                       
Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal/ Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)                 
        
Radio and Television Broadcasting        
NEP II, Inc. Second Lien Term Loan LIBOR (M) —
 7.00% 9.40% 10/19/2026 $23,565,964
 $23,445,286
 $23,448,134
 1.37% G
                       
Real Estate Leasing        
Daymark Financial Acceptance, LLC 
First Lien Delayed
Draw Term Loan
 LIBOR (M) —
 9.50% 11.91% 1/12/2020 $5,750,000
 5,738,457
 5,750,000
 0.34% N
Home Partners of America, Inc. First Lien Delayed Draw Term Loan LIBOR (M) 1.00% 6.25% 8.65% 10/13/2022 $—
 —
 (14,679) —
 K/N
Home Partners of America, Inc. First Lien Term Loan LIBOR (M) 1.00% 6.25% 8.65% 10/13/2022 $2,857,143
 2,823,088
 2,837,571
 0.17% N
                8,561,545
 8,572,892
 0.51%  
Retail        
Live Auctioneers LLC First Lien Last Out B-2 Term Loan LIBOR (Q) —
 6.76% 9.09% 5/20/2025 $14,030,514
 13,751,610
 13,749,904
 0.80% N
USR Parent, Inc. (Staples) First Lien FILO Term Loan LIBOR (Q) 1.00% 8.84% 11.27% 9/12/2022 $6,968,402
 6,849,755
 6,968,053
 0.41% N
                20,601,365
 20,717,957
 1.21%  
Satellite Telecommunications        
Avanti Communications Group, PLC (United Kingdom) Sr New Money Initial Note Fixed —
 9.00% PIK
 9.00% 10/1/2022 $1,592,934
 1,563,970
 1,064,080
 0.06% E/G/H/N
Avanti Communications Group, PLC (United Kingdom) Sr Second-Priority PIK Toggle Note Fixed —
 9.00% PIK
 9.00% 10/1/2022 $4,064,721
 3,993,101
 2,715,234
 0.16% E/G/H/N
Avanti Communications Jersey Limited 1.5 Lien Delayed Draw Term Loan (2.5% Exit Fee) Fixed —
 12.50% 12.50% 5/24/2021 $730,749
 702,838
 660,945
 0.04% L/N
Avanti Communications Jersey Limited 1.5 Lien Term Loan (2.5% Exit Fee) Fixed —
 12.50% 12.50% 5/24/2021 $240,031
 223,284
 225,389
 0.01% L/N
                6,483,193
 4,665,648
 0.27%  
Traveler Arrangement    
CIBT Solutions, Inc. Second Lien Term Loan LIBOR (Q) 1.00% 7.75% 10.08% 6/1/2025 $7,611,914
 7,548,897
 7,516,765
 0.44% G/N
                       
Utility System Construction    
Conergy Asia & ME Pte. Ltd (Singapore) First Lien Term Loan Fixed —
 10.00% 10.00% 5/26/2020 $1,773,807
 1,773,806
 1,497,092
 0.09% F/H/N
GlassPoint Solar, Inc. First Lien Term Loan (4.0% Exit Fee) LIBOR (Q) —
 8.50% 11.06% 8/1/2020 $3,911,427
 3,890,090
 3,732,871
 0.22% L/N
GlassPoint Solar, Inc. First Lien Term Loan (5.0% Exit Fee) LIBOR (Q) —
 11.44% 14.00% 8/1/2020 $2,139,110
 2,062,162
 2,091,301
 0.12% L/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Bank Guarantee Credit Facility Fixed —
 0.00% 0.00% 5/26/2020 $6,578,877
 6,578,877
 3,289,438
 0.19% C/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Revolving Credit Facility Fixed —
 0.00% 0.00% 5/26/2020 $8,668,850
 8,668,850
 2,638,365
 0.15% C/F/H/N
                 22,973,785
 13,249,067
 0.77%  
Wholesalers    
Construction Supply Acquisition, LLC First Lien Term Loan LIBOR (M) 1.00% 6.00% 8.41% 6/30/2023 $11,908,696
 11,849,450
 11,878,924
 0.69% N
FreePoint Commodities, LLC Second Lien Term Loan LIBOR (M) 1.00% 8.25% 10.65% 6/13/2023 $15,000,000
 14,874,957
 14,853,000
 0.87% N
                26,724,407
 26,731,924
 1.56%  
Wired Telecommunications Carriers    
American Broadband Holding Company First Lien Term Loan LIBOR (M) 1.25% 7.25% 9.65% 10/25/2022 $16,746,353
 16,452,043
 16,820,874
 0.98% N
TPC Intermediate Holdings, LLC First Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 6.00% 8.33% 5/15/2023 $803,647
 790,467
 799,950
 0.05% N
TPC Intermediate Holdings, LLC First Lien Incremental Delayed Draw Term Loan LIBOR (Q) 1.00% 6.00% 8.33% 5/15/2020 $—
 (13,586) (3,627) —
 K/N
                17,228,924
 17,617,197
 1.03%  
                       
Total Debt Investments 1,651,693,321
 1,609,094,467
 94.04%  
       
       
                       

98




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

SeptemberJune 30, 20182019



Issuer Instrument         Expiration Shares Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Equity Securities (continued)                      
Electronic Component Manufacturing
Adesto Technologies Corporation Warrants to Purchase Common Stock         5/8/2024 436,320
 $846,724
 $272,700
 0.02% C/E/N
Soraa, Inc. Warrants to Purchase Common Stock         8/29/2024 3,071,860
 478,899
 226,396
 0.01% C/E/N
                1,325,623
 499,096
 0.03%  
Equipment Leasing
36th Street Capital Partners Holdings, LLC Membership Units           12,649,416
 12,649,416
 20,739,461
 1.26% E/F/N
                       
Financial Investment Activities
GACP I, LP (Great American Capital) Membership Units           8,778,033
 8,778,033
 9,447,794
 0.57% E/I/N
GACP II, LP (Great American Capital) Membership Units           12,248,965
 12,248,965
 13,348,922
 0.81% E/I/N
                21,026,998
 22,796,716
 1.38%  
Metal and Mineral Mining
EPMC HoldCo, LLC Membership Units           1,312,720
 —
 236,289
 0.01% B/C/E/N
                       
Motion Picture and Video Industries
NEG Parent, LLC (Core Entertainment, Inc.) Class A Units           2,720,392
 2,772,807
 6,546,895
 0.40% B/C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Class A Warrants to Purchase Class A Units         10/17/2026 343,387
 196,086
 363,063
 0.02% B/C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Class B Warrants to Purchase Class A Units         10/17/2026 346,794
 198,032
 366,665
 0.02% B/C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Litigation Trust Units           407
 —
 1,159,624
 0.07% B/C/N
                3,166,925
 8,436,247
 0.51%  
Other Information Services
SoundCloud, Ltd. (United Kingdom) Warrants to Purchase Preferred Stock         4/29/2025 946,498
 79,082
 45,148
 —
 C/E/H/N
                       
Other Manufacturing
AGY Holding Corp. Common Stock           1,333,527
 —
 —
 —
 B/C/E/N
KAGY Holding Company, Inc. Series A Preferred Stock           9,778
 1,091,200
 4,328,550
 0.26% B/C/E/N
                1,091,200
 4,328,550
 0.26%  
Plastics Manufacturing
Iracore Investments Holdings, Inc. Class A Common Stock           16,207
 4,177,710
 2,297,140
 0.14% B/C/E/N
                       
Radio and Television Broadcasting
Fuse Media, LLC Warrants to Purchase Common Stock         8/3/2022 233,470
 300,322
 —
 —
 C/E/N
                       
Restaurants
RM Holdco, LLC (Real Mex) Equity Participation           24
 —
 —
 —
 B/C/E/N
RM Holdco, LLC (Real Mex) Membership Units           13,161,000
 2,010,777
 1,316
 —
 B/C/E/N
                2,010,777
 1,316
 —
  
Retail
Shop Holding, LLC (Connexity) Class A Units           507,167
 480,049
 —
 —
 C/E/N
                       
Satellite Telecommunications
Avanti Communications Group, PLC (United Kingdom) Common Stock           26,576,710
 4,902,674
 1,767,051
 0.11% C/D/H
                       
Issuer Instrument         Expiration Shares Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Equity Securities       
Advertising, Public Relations and Marketing                            
Foursquare Labs, Inc. Warrants to Purchase Series E Preferred Stock         5/4/2027 1,125,000
 $185,450
 $238,245
 0.01% C/E/N
InMobi, Inc. (Singapore) Warrants to Purchase Common Stock         8/15/2027 1,327,869
 212,360
 125,757
 0.01% C/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
 428,177
 0.03% C/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
 54,626
 —
 C/E/H/N
                767,709
 846,805
 0.05%  
Air Transportation    
Aircraft Leased to United Airlines, Inc.                    
United N659UA-767, LLC (N659UA) Trust Beneficial Interests           683
 2,346,353
 2,678,925
 0.16% E/F/N
United N661UA-767, LLC (N661UA) Trust Beneficial Interests           688
 2,417,176
 2,679,749
 0.16% E/F/N
Epic Aero, Inc (One Sky) Common Stock           1,842
 855,313
 6,461,249
 0.38% C/N
                5,618,842
 11,819,923
 0.70%  
Business Support Services    
Findly Talent, LLC Membership Units           708,229
 230,938
 49,576
 —
 C/E/N
STG-Fairway Holdings, LLC (First Advantage) Class A Units           803,961
 325,432
 3,579,710
 0.21% C/E/N
                556,370
 3,629,286
 0.21%  
Chemicals    
Green Biologics, Inc. (United Kingdom) Common Stock           34,761,145
 20,528,870
 3,476
 —
 B/C/E/H/N
Nanosys, Inc. Warrants to Purchase Preferred Stock         3/29/2023 800,000
 605,266
 832,160
 0.05% C/E/N
                21,134,136
 835,636
 0.05%  
Computer Systems Design and Related Services    
Fidelis Topco LP Warrants to Purchase Series A Preferred Units         7/20/2028 21,888,917
 —
 2,189
 —
 C/E/N
Fidelis Topco LP Warrants to Purchase Series B Preferred Units         7/20/2028 24,972,917
 —
 2,497
 —
 C/E/N
                —
 4,686
 —
  
Data Processing and Hosting Services    
Anacomp, Inc. Class A Common Stock           1,255,527
 26,711,048
 1,155,085
 0.07% C/E/F/N
Domo, Inc. Warrants to Purchase Class B Common Stock         6/28/2021 62,247
 511,349
 847,261
 0.05% C/E/N
Snaplogic, Inc. Warrants to Purchase Series Preferred Stock         3/19/2028 1,860,000
 377,722
 1,600,000
 0.09% C/E/N
                27,600,119
 3,602,346
 0.21%  
Diversified Software    
Actifio, Inc. Warrants to Purchase Series G Preferred Stock         5/5/2027 1,052,651
 188,770
 467,603
 0.03% C/E/N
FinancialForce.com Warrants to Purchase Series C Preferred Stock         1/30/2029 840,000
 287,985
 293,268
 0.02% C/E/N
Tradeshift, Inc. Warrants to Purchase Series D Preferred Stock         3/26/2027 1,712,930
 577,843
 633,245
 0.04% C/E/N
Utilidata, Inc. Warrants to Purchase Preferred Stock         12/22/2022 719,998
 216,336
 55,980
 —
 C/E/N
                1,270,934
 1,450,096
 0.09%  
Educational Support Services    
Edmentum Ultimate Holdings, LLC Class A Common Units           159,515
 680,226
 —
 —
 B/C/E/N
Edmentum Ultimate Holdings, LLC Warrants to Purchase Class A Units         2/23/2028 788,112
 —
 —
 —
 B/C/E/N
                680,226
 —
 —
  

109




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

SeptemberJune 30, 20182019



Issuer Instrument         Expiration Shares Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Equity Securities (continued)                      
Scientific Research and Development Services
Lions Holdings, Inc. (Envigo) (United Kingdom) Series A Warrants to Purchase Common Stock         4/29/2020 10,287
 $—
 $—
 —
 C/E/H/N
Lions Holdings, Inc. (Envigo) (United Kingdom) Series B Warrants to Purchase Common Stock         4/29/2020 16,494
 —
 —
 —
 C/E/H/N
                —
 —
 —
  
Utility System Construction      
Conergy Asia Holdings Limited (United Kingdom) Class B Shares           1,000,000
 1,000,000
 —
 —
 C/E/F/H/N
Conergy Asia Holdings Limited (United Kingdom) Ordinary Shares           3,333
 7,833,333
 —
 —
 C/E/F/H/N
GlassPoint Solar, Inc. Warrants to Purchase Series D Preferred Stock         2/7/2027 448,000
 76,950
 48,877
 —
 C/E/N
GlassPoint Solar, Inc. Warrants to Purchase Series C-1 Preferred Stock         2/7/2027 400,000
 248,555
 207,240
 0.01% C/E/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Ordinary Shares           2,332,594
 —
 —
 —
 C/E/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Series B Preferred Shares           93,023
 1,395,349
 —
 —
 C/E/F/H/N
                10,554,187
 256,117
 0.01%  
                       
Wired Telecommunications Carriers      
V Telecom Investment S.C.A. (Vivacom) (Luxembourg) Common Shares           1,393
 3,236,256
 1,214,035
 0.07% C/D/E/H/N
                       
                       
Total Equity Securities 102,627,734
 83,791,610
 5.08%  
         
Total Investments $1,618,026,495
 $1,560,112,884
    
                       
Cash and Cash Equivalents        
Cash Held on Account at Various Institutions               88,282,658
 5.35%  
Wells Fargo Treasury Plus Government Money Market Fund               2,000,000
 0.12%  
Cash and Cash Equivalents   90,282,658
 5.47%  
                       
Total Cash and Investments $1,650,395,542
 100.00% M
Issuer Instrument 
 
 
 
 Expiration Shares Cost Fair
Value		 % of Total
Cash and
Investments		 Notes
Equity Securities (continued)                 
        
Electronic Component Manufacturing    
Adesto Technologies Corporation Warrants to Purchase Common Stock         5/8/2024 436,320
 $846,724
 $703,245
 0.04% C/E/N
Soraa, Inc. Warrants to Purchase Preferred Stock         8/29/2024 3,071,860
 478,899
 1,067,406
 0.06% C/E/N
                1,325,623
 1,770,651
 0.10%  
Equipment Leasing    
36th Street Capital Partners Holdings, LLC Membership Units           16,090,666
 16,090,666
 22,082,923
 1.29% E/F/N
                       
Financial Investment Activities    
Conventional Lending TCP Holdings, LLC Membership Units           1,415,656
 1,415,656
 1,415,656
 0.08% E/F/I/N
GACP I, LP (Great American Capital) Membership Units           1,909,060
 1,909,060
 2,363,610
 0.14% E/I/N
GACP II, LP (Great American Capital) Membership Units           17,207,181
 17,207,181
 17,930,490
 1.05% E/I/N
                20,531,897
 21,709,756
 1.27%  
Motion Picture and Video Industries      
NEG Parent, LLC (Core Entertainment, Inc.) Class A Units           2,720,392
 2,772,807
 6,708,879
 0.39% B/C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Class A Warrants to Purchase Class A Units         10/17/2026 343,387
 196,086
 372,559
 0.02% B/C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Class B Warrants to Purchase Class A Units         10/17/2026 346,794
 198,032
 376,255
 0.02% B/C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Litigation Trust Units           407
 —
 1,084,249
 0.06% B/C/N
                3,166,925
 8,541,942
 0.49%  
Other Information Services      
Quora, Inc. Warrants to Purchase Series D Preferred Stock         4/11/2029 507,704
 65,245
 65,245
 —
 C/E/N
SoundCloud, Ltd. (United Kingdom) Warrants to Purchase Preferred Stock         4/29/2025 946,498
 79,082
 45,143
 —
 C/E/H/N
                144,327
 110,388
 —
  
Other Manufacturing      
AGY Holding Corp. Common Stock           1,333,527
 —
 —
 —
 B/C/E/N
KAGY Holding Company, Inc. Series A Preferred Stock           9,778
 1,091,200
 —
 —
 B/C/E/N
                1,091,200
 —
 —
  
Plastics Manufacturing      
Iracore Investments Holdings, Inc. Class A Common Stock           16,207
 4,177,710
 1,477,518
 0.09% B/C/E/N
                

 

 

  
Retail      
Shop Holding, LLC (Connexity) Class A Units           507,167
 480,049
 —
 —
 C/E/N
                       
Satellite Telecommunications      
Avanti Communications Group, PLC (United Kingdom) Common Stock           26,576,710
 4,902,674
 573,610
 0.03% C/D/H
                       
Scientific Research and Development Services      
Envigo RMS Holdings Corp. Common Stock           36,413
 —
 534,850
 0.03% C/E/N
                       
                       
                       
                       
                       
                       
                       
                       
                       

10




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

June 30, 2019



Issuer Instrument         Expiration Shares Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Equity Securities (continued)                 
        
Utility System Construction      
Conergy Asia Holdings Limited (United Kingdom) Class B Shares           1,000,000
 $1,000,000
 $—
 —
 C/E/F/H/N
Conergy Asia Holdings Limited (United Kingdom) Ordinary Shares           3,333
 7,833,333
 —
 —
 C/E/F/H/N
GlassPoint Solar, Inc. Warrants to Purchase Series D Preferred Stock         2/7/2027 448,000
 76,950
 120,256
 0.01% C/E/N
GlassPoint Solar, Inc. Warrants to Purchase Series C-1 Preferred Stock         2/7/2027 400,000
 248,555
 107,372
 0.01% C/E/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Ordinary Shares           2,332,594
 —
 —
 —
 C/E/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Series B Preferred Shares           93,023
 1,395,349
 —
 —
 C/E/F/H/N
                10,554,187
 227,628
 0.02%  
Wired Telecommunications Carriers      
V Telecom Investment S.C.A. (Vivacom) (Luxembourg) Common Shares           1,393
 3,236,256
 869,758
 0.05% C/D/E/H/N
                       
Total Equity Securities  
 123,329,850
 80,087,802
 4.68%   
         
Total Investments $1,775,023,171
 $1,689,182,269
  
   
                       
Cash and Cash Equivalents  
  
  
   
Cash Held on Account at Various Institutions                
  
 21,857,502
 1.28%   
Cash and Cash Equivalents 21,857,502
 1.28%   
       
Total Cash and Investments  $1,711,039,771
 100.00% M

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-income producing.
(D)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.
(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.

11




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Unaudited) (Continued)

September 30, 2018


(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.

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 $457,623,514$382,374,154 and $395,717,322,$263,463,486, respectively, for the ninesix months ended SeptemberJune 30, 2018.2019. 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 SeptemberJune 30, 20182019 was $1,519,159,609$1,643,591,361 or 92.0%96.1% of total cash and investments of the Company.  As of SeptemberJune 30, 2018,2019, approximately 14.9%12.7% 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.

1211




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments

December 31, 20172018

Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (A)      
Advertising, Public Relations and Marketing      
Foursquare Labs, Inc. First Lien Delayed Draw Term Loan (5.0% Exit Fee) LIBOR (M) —
 8.81% 10.31% 6/1/2020 $18,750,000
 $18,410,907
 $18,383,250
 1.15% L/N
InMobi, Inc. (Singapore) First Lien Delayed Draw Tranche 1 Term Loan (4.00% Exit Fee) LIBOR (M) 1.37% 8.13% 9.63% 12/31/2019 $24,897,542
 24,417,800
 24,593,791
 1.54% H/L/N
Videology Media Technologies, LLC First Lien UK Revolver (2.0% Exit Fee) LIBOR (M) 1.00% 10.00% 11.48% 1/10/2020 $6,299,020
 6,299,020
 6,115,830
 0.38% L/N
Videology Media Technologies, LLC First Lien US Revolver (2.0% Exit Fee) LIBOR (M) 1.00% 8.50% 9.98% 1/10/2020 $3,047,945
 3,047,945
 3,032,930
 0.19% L/N
                52,175,672
 52,125,801
 3.26%  
Air Transportation      
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan A LIBOR (M) —
 7.25% 8.88% 12/14/2021 $14,609,503
 14,400,062
 14,686,203
 0.92% N
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan B LIBOR (M) —
 7.25% 8.88% 2/28/2022 $8,515,704
 8,389,636
 8,519,110
 0.53% N
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan C LIBOR (M) —
 7.25% 8.88% 7/31/2022 $3,538,544
 3,486,116
 3,508,467
 0.22% N
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan C-1 LIBOR (M) —
 7.25% 8.88% 9/30/2022 $5,412,085
 5,320,659
 5,339,563
 0.33% N
                31,596,473
 32,053,343
 2.00%  
Amusement and Recreation      
VSS-Southern Holdings, LLC (Southern Theatres) First Lien Term Loan LIBOR (Q) 1.00% 6.50% Cash + 2.00%PIK
 10.19% 11/3/2020 $24,342,738
 23,991,933
 23,790,158
 1.49% N
VSS-Southern Holdings, LLC (Southern Theatres) Sr Secured Revolver LIBOR (Q) 1.00% 6.50% Cash + 2.00%PIK
 N/A
 11/3/2020 $—
 (12,135) (19,435) —
 K/N
                23,979,798
 23,770,723
 1.49%  
Building Equipment Contractors      
Hylan Datacom & Electrical, LLC First Lien Term Loan LIBOR (Q) 1.00% 7.50% 9.07% 7/25/2021 $13,626,146
 13,467,549
 13,769,221
 0.86% N
                       
Business Support Services      
Enerwise Global Technologies, Inc. Sr Secured Revolving Loan LIBOR (Q) 0.23% 8.52% N/A
 11/30/2018 $—
 —
 (23,000) —
 K/N
Enerwise Global Technologies, Inc. Sr Secured Term Loan (3.77% Exit Fee) LIBOR (Q) 0.23% 9.27% 10.60% 11/30/2019 $22,687,500
 22,487,892
 22,557,047
 1.41% L/N
STG-Fairway Acquisitions, Inc. (First Advantage) Second Lien Term Loan LIBOR (Q) 1.00% 9.25% 10.73% 6/30/2023 $31,000,000
 30,637,657
 29,676,300
 1.85% N
                53,125,549
 52,210,347
 3.26%  
Chemicals      
Anuvia Plant Nutrients Holdings, LLC Sr Secured Term Loan (8.0% Exit Fee) LIBOR (M) —
 10.63% 12.13% 2/1/2018 $1,147,372
 1,159,323
 1,147,372
 0.07% L/N
Green Biologics, Inc. Convertible Note Fixed —
 10.00% PIK
 10.00% 6/30/2019 $7,500,000
 7,467,998
 4,472,250
 0.28% E/N
Green Biologics, Inc. Sr Secured Term Loan (12.4 % Exit Fee) Fixed —
 10.00% PIK
 10.00% 12/31/2020 $8,312,637
 8,272,422
 5,160,485
 0.32% L/N
iGM RFE1 B.V. (Netherlands) First Lien Delayed Draw Term Loan LIBOR (Q) —
 8.00% 9.69% 10/12/2021 $871,842
 866,740
 915,260
 0.06% H/N
iGM RFE1 B.V. (Netherlands) First Lien Term Loan LIBOR (Q) —
 8.00% 9.69% 10/12/2021 $3,767,969
 3,745,385
 3,955,614
 0.25% H/N
iGM RFE1 B.V. (Netherlands) First Lien Term Loan EURIBOR (Q) —
 8.00% 8.00% 10/12/2021 €6,377,358
 6,966,626
 8,037,289
 0.50% D/H/N
Nanosys, Inc. First Lien Delayed Draw Term Loan (3.5% Exit Fee) LIBOR (Q) —
 9.81% 11.31% 4/1/2019 $8,969,791
 8,664,362
 8,848,699
 0.55% L/N
                37,142,856
 32,536,969
 2.03%  
Communications Equipment Manufacturing      
Globecomm Systems, Inc. First Lien Incremental Term Loan LIBOR (Q) 1.25% 7.63% 9.11% 12/21/2021 $175,824
 171,604
 175,824
 0.01% B/N
Globecomm Systems, Inc. First Tranche Term Loan LIBOR (Q) 1.25% 5.50% 7.06% 12/11/2021 $7,200,000
 7,200,000
 7,200,000
 0.45% B/N
Globecomm Systems, Inc. Second Tranche Term Loan LIBOR (Q) 1.25% 8.00% 9.56% 12/11/2021 $2,400,000
 2,400,000
 2,400,000
 0.15% B/N
Globecomm Systems, Inc. Third Tranche Term Loan Fixed —
 12.50% PIK
 12.50% 12/11/2021 $1,248,000
 1,248,000
 1,248,000
 0.08% B/N
Globecomm Systems, Inc. Fourth Tranche Term Loan Fixed —
 12.50% PIK
 12.50% 12/11/2021 $2,256,000
 2,256,000
 2,256,000
 0.14% B/N
                13,275,604
 13,279,824
 0.83%  
                       
                       
Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (A)      
Advertising, Public Relations and Marketing      
Foursquare Labs, Inc. First Lien Delayed Draw Term Loan (5.0% Exit Fee) LIBOR (Q) —
 8.81% 11.56% 6/1/2020 $22,500,000
 $22,288,567
 $22,343,623
 1.37% L/N
InMobi, Inc. (Singapore) First Lien Term Loan LIBOR (Q) 1.37% 8.13% 10.88% 9/30/2021 $37,775,057
 37,432,000
 37,727,838
 2.32% H/N
                59,720,567
 60,071,461
 3.69%  
Air Transportation      
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan A LIBOR (Q) —
 7.25% 9.81% 12/14/2021 $12,945,769
 12,802,291
 13,130,247
 0.81% N
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan B LIBOR (Q) —
 7.25% 9.81% 2/28/2022 $7,683,837
 7,594,071
 7,793,332
 0.48% N
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan C LIBOR (Q) —
 7.25% 9.81% 7/31/2022 $3,205,798
 3,166,674
 3,296,682
 0.20% N
Mesa Airlines, Inc. Engine Acquisition Delayed Draw Term Loan C-1 LIBOR (Q) —
 7.25% 9.81% 9/30/2022 $4,912,965
 4,845,174
 5,051,510
 0.31% N
Mesa Airlines, Inc. Engine Acquisition Term loan C-3 LIBOR (Q) —
 7.25% 9.81% 2/28/2023 $1,353,738
 1,332,947
 1,391,236
 0.08% N
Mesa Air Group, Inc. Junior Loan Agreement (N902FJ) LIBOR (Q) —
 7.50% 10.04% 2/1/2022 $1,027,521
 1,018,433
 1,014,163
 0.06% N
Mesa Air Group, Inc. Junior Loan Agreement (N903FJ) LIBOR (Q) —
 7.50% 10.04% 2/1/2022 $1,229,633
 1,218,758
 1,213,648
 0.07% N
Mesa Air Group, Inc. Junior Loan Agreement (N904FJ) LIBOR (Q) —
 7.50% 10.04% 2/1/2022 $1,406,638
 1,394,198
 1,388,352
 0.09% N
Mesa Air Group, Inc. Junior Loan Agreement (N905FJ) LIBOR (Q) —
 7.50% 10.04% 2/1/2022 $979,415
 970,753
 966,683
 0.06% N
Mesa Air Group, Inc. Junior Loan Agreement (N906FJ) LIBOR (Q) —
 7.50% 10.04% 5/1/2022 $1,021,301
 1,012,097
 1,008,024
 0.06% N
Mesa Air Group, Inc. Junior Loan Agreement (N907FJ) LIBOR (Q) —
 7.50% 10.04% 5/1/2022 $1,071,436
 1,061,780
 1,057,507
 0.07% N
Mesa Air Group, Inc. Junior Loan Agreement (N908FJ) LIBOR (Q) —
 7.50% 10.04% 5/1/2022 $1,648,638
 1,633,781
 1,627,206
 0.10% N
Mesa Air Group, Inc. Junior Loan Agreement (N909FJ) LIBOR (Q) —
 7.50% 10.04% 8/1/2022 $683,862
 677,658
 674,972
 0.04% N
Mesa Air Group, Inc. Junior Loan Agreement (N910FJ) LIBOR (Q) —
 7.50% 10.04% 8/1/2022 $647,598
 641,723
 639,179
 0.04% N
                39,370,338
 40,252,741
 2.47%  
Amusement and Recreation      
Blue Star Sports Holdings, Inc. First Lien Delayed Draw Term Loan LIBOR (M) 1.00% 5.75% 8.22% 6/15/2024 $—
 (15,165) —
 —
 K/N
Blue Star Sports Holdings, Inc. First Lien Revolver LIBOR (M) 1.00% 5.75% 8.22% 6/15/2024 $122,222
 119,176
 119,139
 0.01% N
Blue Star Sports Holdings, Inc. First Lien Term Loan LIBOR (M) 1.00% 5.75% 8.22% 6/15/2024 $1,500,000
 1,472,068
 1,472,250
 0.09% N
Machine Zone, Inc. First Lien Term Loan (10.0% Exit Fee) LIBOR (M) —
 13.50% 15.85% 2/1/2021 $5,502,976
 5,439,653
 5,414,929
 0.33% L/N
VSS-Southern Holdings, LLC (Southern Theatres) First Lien Term Loan LIBOR (Q) 1.00% 6.50% Cash+2.00% PIK
 11.30% 11/3/2020 $23,739,142
 23,504,334
 24,037,068
 1.48% N
VSS-Southern Holdings, LLC (Southern Theatres) Sr Secured Revolver LIBOR (Q) 1.00% 6.50% Cash+2.00% PIK
 11.30% 11/3/2020 $856,164
 848,517
 856,165
 0.05% N
VSS-Southern Holdings, LLC (Southern Theatres) First Lien Incremental Term Loan LIBOR (Q) 1.00% 6.50% Cash+2.00% PIK
 11.30% 11/2/2022 $1,415,726
 1,402,020
 1,433,494
 0.09% N
                32,770,603
 33,333,045
 2.05%  
Building Equipment Contractors      
Hylan Datacom & Electrical, LLC First Lien Incremental Term Loan LIBOR (M) 1.00% 7.50% 10.02% 7/25/2021 $2,496,448
 2,442,261
 2,490,207
 0.15% N
Hylan Datacom & Electrical, LLC First Lien Term Loan LIBOR (M) 1.00% 7.50% 10.02% 7/25/2021 $13,807,225
 13,691,491
 13,772,707
 0.85% N
TCFI Amteck Holdings, LLC First Lien Delayed Draw Term Loan LIBOR (Q) —
 6.25% 9.06% 5/22/2023 $481,249
 472,488
 487,746
 0.03% N
TCFI Amteck Holdings, LLC First Lien Term Loan LIBOR (Q) —
 6.25% 9.06% 5/22/2023 $16,046,661
 15,753,256
 16,263,291
 1.00% N
                32,359,496
 33,013,951
 2.03%  
                       
                       
                       

                      

1312




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 20172018


Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)      
Computer Systems Design and Related Services      
Aptos Inc. (Canada) First Lien Incremental Term Loan LIBOR (Q) 1.00% 6.75% 8.44% 9/1/2022 $7,918,930
 $7,806,963
 $7,839,741
 0.49% H/N
Aptos Inc. (Canada) First Lien Term Loan LIBOR (Q) 1.00% 6.75% 8.44% 9/1/2022 $9,837,500
 9,677,911
 9,739,125
 0.61% H/N
Bracket Intermediate Holding Corp. Second Lien Term Loan LIBOR (Q) 1.00% 9.00% 10.48% 3/14/2024 $10,925,551
 10,622,213
 10,783,519
 0.67% N
Dealersocket, Inc. First Lien Term Loan LIBOR (M) 1.00% 10.00% 11.49% 2/10/2021 $14,875,000
 14,462,683
 14,875,000
 0.93% N
Fidelis Acquisitionco, LLC First Lien Term Loan LIBOR (Q) 1.00% 6.00% Cash + 2.00%PIK
 9.38% 11/4/2019 $43,440,093
 43,045,225
 39,712,933
 2.48% N
Fidelis Acquisitionco, LLC Sr Secured Revolver LIBOR (Q) 1.00% 8.00% 9.38% 11/4/2019 $3,182,143
 3,182,143
 2,909,115
 0.18% N
Marketo, Inc. First Lien Term Loan LIBOR (Q) 1.00% 9.50% 11.19% 8/16/2021 $23,295,455
 22,749,196
 23,295,455
 1.45% N
Marketo, Inc. Senior Secured Revolver LIBOR (Q) 1.00% 9.50% N/A
 8/16/2021 $—
 (37,215) —
 —
 K/N
                111,509,119
 109,154,888
 6.81%  
Credit (Nondepository)      
Auto Trakk SPV, LLC First Lien Delayed Draw Term Loan LIBOR (M) 0.50% 9.50% 10.98% 12/21/2021 $22,432,442
 22,090,438
 22,971,871
 1.43% N
Caliber Home Loans, Inc. First Lien Delayed Draw Term Loan LIBOR (M) 1.00% 6.50% 8.07% 6/30/2020 $17,111,111
 16,968,821
 17,111,111
 1.07% N
CFG Investments Limited (Caribbean Financial Group) (Cayman Islands) Subordinated Class B Notes Fixed —
 9.42% 9.42% 11/15/2026 $28,314,000
 27,425,923
 27,530,552
 1.72% E/G/H/N
                66,485,182
 67,613,534
 4.22%  
Credit Related Activities      
Pegasus Business Intelligence, LP (Onyx Centersource) First Lien Term Loan LIBOR (Q) 1.00% 6.75% 8.45% 12/20/2021 $14,622,123
 14,503,579
 14,622,123
 0.91% N
Pegasus Business Intelligence, LP (Onyx Centersource) Revolver LIBOR (Q) 1.00% 6.75% N/A
 12/20/2021 $—
 (5,405) —
 —
 K/N
Pacific Union Financials, LLC First Lien Term Loan LIBOR (M) 1.00% 7.50% 8.86% 4/21/2022 $25,000,000
 24,774,024
 25,000,000
 1.56% N
                39,272,198
 39,622,123
 2.47%  
Data Processing and Hosting Services      
Applause App Quality, Inc. First Lien Term Loan LIBOR (Q) 1.00% 6.50% 7.86% 9/20/2022 $22,647,306
 22,214,352
 22,381,200
 1.40% N
Applause App Quality, Inc. First Revolver LIBOR (Q) 1.00% 6.50% N/A
 9/20/2022 $—
 (28,508) (17,740) —
 K/N
Datto, Inc. First Lien Term Loan LIBOR (M) 1.00% 8.00% 9.41% 12/7/2022 $32,792,848
 32,136,991
 32,136,991
 2.01% N
Datto, Inc. Sr Secured Revolver LIBOR (M) 1.00% 8.00% N/A
 12/7/2022 $—
 (43,556) (44,143) —
 K/N
DigiCert Holdings, Inc. Second Lien Term Loan LIBOR (Q) 1.00% 8.00% 9.38% 10/31/2025 $11,988,526
 11,947,192
 12,080,359
 0.75%  
Domo, Inc. First Lien Delayed Draw Term Loan (4.5% Exit Fee) LIBOR (M) —
 5.50% Cash + 2.50%PIK
 9.50% 2/1/2021 $25,494,938
 24,834,102
 25,074,781
 1.57% L/N
Internap Corporation First Lien Term Loan LIBOR (M) 1.00% 7.00% 8.41% 4/3/2022 $8,163,812
 8,054,758
 8,262,472
 0.52% J
Intralinks, Inc. Second Lien Term Loan LIBOR (Q) 1.00% 8.00% 9.70% 11/14/2025 $4,045,291
 4,004,922
 4,045,291
 0.25% N
IO Data Centers, USA, LLC First Lien Term Loan Fixed —
 9.00% 9.00% 1/15/2020 $15,000,000
 15,000,000
 15,000,000
 0.94% N
Pulse Secure, LLC First Lien Term Loan LIBOR (Q) 1.00% 7.00% 8.34% 5/1/2022 $11,961,813
 11,800,299
 11,997,700
 0.75% N
Pulse Secure, LLC Revolver LIBOR (Q) 1.00% 7.00% N/A
 5/1/2022 $—
 (17,489) —
 —
 K/N
TierPoint, LLC Second Lien Term Loan LIBOR (M) 1.00% 7.25% 8.82% 5/5/2025 $9,675,000
 9,607,335
 9,729,422
 0.61%  
                139,510,398
 140,646,333
 8.80%  
Educational Support Services      
Edmentum, Inc. Jr Revolving Facility Fixed —
 5.00% 5.00% 6/9/2020 $2,189,581
 2,189,581
 2,189,584
 0.14% B/N
Edmentum Ultimate Holdings, LLC Sr PIK Notes Fixed —
 8.50% 8.50% 6/9/2020 $3,099,573
 3,099,573
 3,099,573
 0.19% B/N
Edmentum Ultimate Holdings, LLC Jr PIK Notes Fixed —
 10.00% 10.00% 6/9/2020 $14,413,652
 14,039,962
 10,377,830
 0.65% B/N
                19,329,116
 15,666,987
 0.98%  
Electronic Component Manufacturing      
Soraa, Inc. Tranche A Term Loan (3.0% Exit Fee) LIBOR (M) 0.44% 9.33% 10.71% 3/1/2018 $7,570,571
 7,531,474
 7,449,820
 0.47% L/N
Soraa, Inc. Tranche B Term Loan LIBOR (M) 0.44% 9.33% 10.71% 3/1/2018 $1,603,779
 1,593,183
 1,579,883
 0.10% N
                9,124,657
 9,029,703
 0.57%  
Equipment Leasing      
36th Street Capital Partners Holdings, LLC Senior Note Fixed —
 12.00% 12.00% 11/1/2020 $30,827,391
 30,827,391
 30,827,391
 1.93% E/F/N
                       
Facilities Support Services      
NANA Development Corp. First Lien Term Loan B LIBOR (Q) 1.25% 6.75% 8.37% 3/15/2018 $116,662
 116,039
 116,662
 0.01% N

Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)               
        
Business Support Services      
STG-Fairway Acquisitions, Inc.(First Advantage) Second Lien Term Loan LIBOR (Q) 1.00% 9.25% 11.96% 6/30/2023 $31,000,000
 $30,671,781
 $31,000,000
 1.91% N
       
Chemicals      
Nanosys, Inc. First Lien Delayed Draw Term Loan (3.5% Exit Fee) LIBOR (Q) —
 9.81% 12.56% 4/1/2019 $5,773,290
 5,728,080
 5,799,558
 0.36% L/N
                
 
 
  
Computer Systems Design and Related Services      
Fidelis Acquisitionco, LLC First Lien Term Loan B LIBOR (M) —
 8.00% PIK
 10.44% 12/31/2022 $25,904,525
 25,904,525
 22,562,841
 1.39% N
Fidelis Acquisitionco, LLC First Lien Term Loan C LIBOR (M) —
 10.00% PIK
 12.44% 12/31/2022 $25,240,108
 25,240,108
 21,663,585
 1.33% N
                51,144,633
 44,226,426
 2.72%  
Construction      
Brannan Sand Gravel Company, LLC First Lien Term Loan LIBOR (Q) —
 5.25% 8.06% 7/3/2023 $9,403,553
 9,272,489
 9,417,659
 0.58% N
                       
Credit (Nondepository)      
Auto Trakk SPV, LLC First Lien Delayed Draw Term Loan LIBOR (M) 0.50% 6.50% 8.96% 12/21/2021 $22,432,442
 22,185,057
 22,498,697
 1.38% N
CFG Investments Limited (Caribbean Financial Group) (Cayman Islands) Subordinated Class B Notes Fixed —
 9.42% 9.42% 11/15/2026 $28,314,000
 27,452,195
 28,998,633
 1.78% E/G/H
RSB-160, LLC (Lat20) First Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 6.00% 8.80% 7/20/2022 $3,833,333
 3,762,444
 3,765,867
 0.23% N
RSB-160, LLC (Lat20) First Lien Incremental Delayed Draw Term Loan LIBOR (Q) 1.00% 6.00% 8.80% 7/20/2022 $—
 —
 10,646
 —
 N
                53,399,696
 55,273,843
 3.39%  
Credit Related Activities      
Pegasus Business Intelligence, LP (Onyx Centersource) First Lien Incremental Term Loan LIBOR (Q) 1.00% 6.25% 9.06% 12/20/2021 $5,737,148
 5,737,148
 5,823,206
 0.36% N
Pegasus Business Intelligence, LP (Onyx Centersource) First Lien Term Loan LIBOR (Q) 1.00% 6.25% 9.06% 12/20/2021 $14,278,605
 14,188,274
 14,492,784
 0.89% N
Pegasus Business Intelligence, LP (Onyx Centersource) Revolver LIBOR (Q) 1.00% 6.25% 9.06% 12/20/2021 $—
 (4,047) —
 —
 K/N
Pacific Union Financial, LLC First Lien Term Loan LIBOR (M) 1.00% 7.50% 9.85% 4/21/2022 $24,583,333
 24,410,715
 24,891,854
 1.53% N
                44,332,090
 45,207,844
 2.78%  
Data Processing and Hosting Services      
Applause App Quality, Inc. First Lien Term Loan LIBOR (M) 1.00% 5.00% 7.48% 9/20/2022 $20,772,306
 20,444,242
 20,634,170
 1.27% N
Applause App Quality, Inc. Sr Secured Revolver LIBOR (M) 1.00% 5.00% 7.48% 9/20/2022 $—
 (22,511) (10,040) —
 K/N
Datto, Inc. First Lien Term Loan LIBOR (M) 1.00% 8.00% 10.46% 12/7/2022 $27,792,848
 27,330,546
 27,695,573
 1.70% N
Datto, Inc. Sr Secured Revolver LIBOR (M) 1.00% 8.00% 10.46% 12/7/2022 $—
 (29,490) (6,547) —
 K/N
DigiCert Holdings, Inc. Second Lien Term Loan LIBOR (M) 1.00% 8.00% 10.52% 10/31/2025 $9,590,821
 9,562,544
 9,339,062
 0.57% G
Domo, Inc. First Lien Delayed Draw Term Loan (4.5% Exit Fee) LIBOR (Q) —
 5.50% Cash+2.50% PIK
 10.50% 6/1/2021 $50,827,704
 50,270,460
 50,601,521
 3.11% L/N
Donuts Inc. First Lien Revolver LIBOR (Q) 1.00% 6.25% 9.05% 9/17/2023 $373,849
 344,520
 363,194
 0.02% N
Donuts Inc. First Lien Term Loan LIBOR (Q) 1.00% 6.25% 9.05% 9/17/2023 $10,965,517
 10,652,302
 10,653,000
 0.66% N
Pulse Secure, LLC First Lien Term Loan LIBOR (M) 1.00% 7.00% 9.39% 5/1/2022 $11,384,532
 11,264,016
 11,430,070
 0.70% N
Pulse Secure, LLC Sr Secured Revolver LIBOR (M) 1.00% 7.00% 9.39% 5/1/2022 $—
 (13,473) —
 —
 K/N
SnapLogic, Inc. First Lien Term Loan LIBOR (Q) —
 7.81% Cash+2.00% PIK
 12.56% 3/1/2022 $31,313,470
 30,684,121
 31,313,470
 1.93% N
TierPoint, LLC Second Lien Term Loan LIBOR (M) 1.00% 7.25% 9.77% 5/5/2025 $4,275,000
 4,234,570
 4,058,578
 0.25%  
Web.com Group Inc. Second Lien Term Loan LIBOR (Q) —
 7.75% 10.17% 10/11/2026 $23,493,200
 23,320,082
 23,317,001
 1.43% J/N
                188,041,929
 189,389,052
 11.64%  
                       
                       
                       
                       
                       

1413




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 20172018


Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)                          
Financial Investment Activities        
Institutional Shareholder Services, Inc. Second Lien Term Loan LIBOR (Q) 1.00% 7.50% 9.11% 10/16/2025 $9,333,333
 $9,286,899
 $9,403,333
 0.59% N
                       
Grocery Stores        
Bashas, Inc. First Lien FILO Term Loan LIBOR (M) 1.50% 8.80% 10.30% 10/8/2019 $3,497,286
 3,483,906
 3,497,286
 0.22% N
                       
Health Care        
Pacific Coast Holdings Investment, LLC (KPC Healthcare) First Lien Term Loan LIBOR (M) 1.00% 7.50% 9.07% 2/14/2021 $29,288,064
 28,933,992
 29,712,741
 1.86% N
                       
Insurance        
Alera Group Intermediate Holdings, Inc. First Lien Delayed Draw Term Loan LIBOR (M) 1.00% 5.50% 6.86% 12/30/2022 $457,917
 449,703
 457,917
 0.03% N
Alera Group Intermediate Holdings, Inc. First Lien Revolver LIBOR (M) 1.00% 5.50% N/A
 12/30/2021 $—
 (7,558) —
 —
 K/N
Alera Group Intermediate Holdings, Inc. First Lien Term Loan LIBOR (M) 1.00% 5.50% 6.86% 12/30/2022 $3,381,568
 3,353,038
 3,381,568
 0.21% N
Association Member Benefits Advisors, LLC Second Lien Term Loan LIBOR (Q) 1.00% 8.75% 10.31% 6/8/2023 $8,277,983
 8,135,840
 8,230,384
 0.51% N
Higginbotham Insurance Agency, Inc. Second Lien Term Loan LIBOR (Q) 1.00% 7.25% 8.25% 12/19/2025 $9,850,547
 9,752,041
 9,752,041
 0.61% N
IAS Investco, Inc. First Lien Delayed Draw Term Loan A LIBOR (Q) 1.00% 5.50% N/A
 1/24/2021 $—
 (57,726) (58,286) —
 K/N
IAS Investco, Inc. First Lien Delayed Draw Term Loan B LIBOR (Q) 1.00% 5.50% N/A
 1/24/2021 $—
 (16,978) (17,143) —
 K/N
IAS Investco, Inc. First Lien Term Loan LIBOR (Q) 1.00% 5.50% 6.90% 1/24/2021 $4,401,429
 4,357,753
 4,357,414
 0.27% N
US Apple Holdco, LLC (Ventiv Technology) First Lien FILO Term Loan LIBOR (Q) 0.50% 13.62% 14.96% 8/29/2019 $20,075,758
 19,756,604
 20,075,758
 1.25% N
US Apple Holdco, LLC (Ventiv Technology) First Lien Incremental Tranche B FILO Term Loan LIBOR (Q) 0.50% 13.62% 15.08% 8/29/2019 $4,320,000
 4,253,133
 4,320,000
 0.27% N
                49,975,850
 50,499,653
 3.15%  
Lessors of Nonfinancial Licenses        
ABG Intermediate Holdings 2, LLC (Authentic Brands) Second Lien Term Loan LIBOR (Q) 1.00% 7.75% 9.44% 9/29/2025 $15,000,000
 14,890,502
 15,225,000
 0.95% N
Kenneth Cole Productions, Inc. First Lien FILO Term Loan LIBOR (M) 1.00% 9.65% 11.21% 3/21/2022 $32,220,576
 31,934,409
 31,932,202
 1.99% N
                46,824,911
 47,157,202
 2.94%  
Management, Scientific, and Technical Consulting Services        
Asentinel, LLC (Tangoe) First Lien Last Out Term Loan LIBOR (Q) 1.00% 10.77%Cash +0.50%PIK
 12.96% 6/16/2022 $24,249,887
 23,368,696
 23,740,640
 1.48% N
Dodge Data & Analytics, LLC First Lien Term Loan LIBOR (Q) 1.00% 8.75% 10.13% 10/31/2019 $22,948,395
 22,732,919
 22,948,395
 1.43% N
                46,101,615
 46,689,035
 2.91%  
Metal Manufacturing        
Neenah Foundries Company First Lien Term Loan B LIBOR (M) —
 6.50% 7.97% 12/13/2022 $5,872,557
 5,813,832
 5,843,195
 0.36% N
                       
Motion Picture and Video Industries        
NEG Holdings, LLC (CORE Entertainment) First Lien Term Loan LIBOR (Q) 1.00% 8.00% PIK
 9.69% 10/17/2022 $1,584,734
 1,584,734
 1,584,734
 0.10% N
                       
Other Information Services        
Discoverorg, LLC Second Lien Term Loan LIBOR (M) 1.00% 8.50% 10.07% 2/26/2024 $12,839,252
 12,715,576
 12,707,649
 0.79% N
                       
Other Manufacturing        
AGY Holding Corp. Sr Secured Term Loan Fixed —
 12.00% 12.00% 9/15/2018 $4,869,577
 4,869,577
 4,869,577
 0.30% B/N
AGY Holding Corp. Second Lien Notes Fixed —
 11.00% 11.00% 11/15/2018 $9,268,000
 7,586,317
 9,268,000
 0.58% B/E/N
AGY Holding Corp. Delayed Draw Term Loan Fixed —
 12.00% 12.00% 9/15/2018 $1,049,146
 1,049,146
 1,049,147
 0.07% B/N
                13,505,040
 15,186,724
 0.95%  
Other Real Estate Activities        
Associations, Inc. First Lien FILO Term Loan LIBOR (Q) 1.00% 8.96% 10.65% 12/23/2019 $12,762,279
 12,681,580
 12,762,279
 0.80% N
Greystone Select Holdings, LLC First Lien Term Loan LIBOR (Q) 1.00% 8.00% 9.40% 4/17/2024 $25,202,549
 24,956,798
 25,661,235
 1.60% N
                37,638,378
 38,423,514
 2.40%  
Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)               
        
Diversified Software      
Acronis International GmbH (Switzerland) First Lien Term Loan LIBOR (Q) 1.00% 11.50%Cash+2.00% PIK
 16.31% 7/16/2020 $15,196,285
 $15,200,725
 $15,196,285
 0.94 % H/N
ArcServe (USA), LLC Second Lien Term Loan LIBOR (Q) 0.50% 8.50% Cash+1.25% PIK
 12.55% 1/31/2020 $31,075,558
 30,932,264
 30,997,869
 1.91 % N
Autoalert, LLC First Lien Incremental Term Loan LIBOR (Q) 0.25% 5.75% Cash+3.00% PIK
 11.19% 12/31/2020 $37,886,155
 37,654,959
 38,113,472
 2.35 % N
Autoalert, LLC First Lien Term Loan LIBOR (Q) 0.25% 5.75% Cash+3.00% PIK
 11.19% 12/31/2020 $14,993,418
 14,790,062
 15,083,378
 0.93 % N
Bond International Software, Inc. (United Kingdom) First Lien Term Loan LIBOR (M) 1.00% 10.00% 12.40% 11/4/2021 $26,358,696
 25,955,777
 25,122,473
 1.55 % H/N
Certify, Inc. First Lien FILO Term Loan LIBOR (M) 1.00% 6.25% 8.77% 1/30/2022 $15,863,835
 15,632,297
 15,625,877
 0.96 % N
DealerFX, Inc. First Lien Term Loan LIBOR (Q) —
 6.25% Cash+2.00% PIK
 11.06% 2/1/2023 $16,016,055
 15,742,618
 16,118,558
 0.99 % N
ECI Macola/Max Holding, LLC Second Lien Term Loan LIBOR (Q) 1.00% 8.00% 10.80% 9/19/2025 $24,840,563
 24,634,138
 24,343,752
 1.50 % N
Fishbowl, Inc. First Lien Term Loan LIBOR (Q) —
 4.80% Cash+8.45% PIK
 16.06% 1/26/2022 $21,976,505
 21,542,497
 20,751,314
 1.28 % N
iCIMS, Inc. First Lien Term Loan LIBOR (Q) 1.00% 6.50% 9.02% 9/12/2024 $7,851,765
 7,699,495
 7,698,655
 0.47 % N
iCIMS, Inc. Sr Secured Revolver LIBOR (Q) 1.00% 6.50% 9.02% 9/12/2024 $—
 (9,323) (9,569) —
 K/N
JAMF Holdings, Inc. First Lien Term Loan LIBOR (Q) 1.00% 8.00% 10.61% 11/13/2022 $14,160,797
 13,927,609
 13,990,868
 0.86 % N
JAMF Holdings, Inc. Sr Secured Revolver LIBOR (Q) 1.00% 8.00% 10.61% 11/13/2022 $—
 (18,815) (14,569) —
 K/N
Lithium Technologies, LLC First Lien Term Loan LIBOR (M) 1.00% 8.00% 10.39% 10/3/2022 $20,884,731
 20,520,511
 20,529,691
 1.26 % N
Lithium Technologies, LLC Sr Secured Revolver LIBOR (M) 1.00% 8.00% 10.39% 10/3/2022 $—
 (25,897) (25,978) —
 K/N
Lithium Technologies, LLC First Lien Incremental Term Loan LIBOR (M) 1.00% 8.00% 10.39% 10/3/2022 $7,131,905
 6,977,108
 7,010,663
 0.43 % N
Lithium Technologies, LLC Sr Secured Revolver LIBOR (M) 1.00% 8.00% 10.39% 10/3/2022 $—
 (9,610) (7,739) —
 K/N
Space Midco, Inc. (Archibus) First Lien Term Loan LIBOR (M) —
 6.25% 8.69% 12/5/2023 $4,444,444
 4,356,066
 4,355,556
 0.27 % N
Space Midco, Inc. (Archibus) Sr Secured Revolver LIBOR (M) —
 6.25% 8.69% 12/5/2023 $—
 (5,473) (5,556) —
 K/N
Team Software, Inc. First Lien Revolver LIBOR (Q) —
 5.50% 8.31% 9/17/2023 $—
 (49,632) (49,508) —
 K/N
Team Software, Inc. First Lien Term Loan LIBOR (Q) —
 5.50% 8.31% 9/17/2023 $13,167,038
 12,979,534
 12,981,383
 0.80 % N
Telarix, Inc. First Lien Term Loan LIBOR (M) 1.00% 6.00% 8.47% 11/19/2023 $7,500,000
 7,388,692
 7,387,500
 0.45 % N
Telarix, Inc. Sr Secured Revolver LIBOR (M) 1.00% 6.00% 8.47% 11/19/2023 $—
 (5,231) (5,357) —
 K/N
Tradeshift Holdings, Inc. First Lien Delayed Draw Term Loan (7.0% Exit Fee) LIBOR (Q) —
 8.88% 11.63% 9/1/2020 $19,117,528
 18,692,528
 19,569,008
 1.20 % L/N
Utilidata, Inc. First Lien Delayed Draw Term Loan (4.0% Exit Fee) LIBOR (Q) —
 9.88% 12.63% 6/1/2019 $1,973,398
 1,955,853
 1,888,937
 0.12 % L/N
Xactly Corporation First Lien Incremental Term Loan LIBOR (Q) 1.00% 7.25% 9.78% 7/31/2022 $2,726,918
 2,680,492
 2,726,918
 0.17 % N
Xactly Corporation First Lien Term Loan LIBOR (Q) 1.00% 7.25% 9.78% 7/31/2022 $16,397,517
 16,146,078
 16,397,517
 1.01 % N
Xactly Corporation Sr Secured Revolver LIBOR (Q) 1.00% 7.25% 9.78% 7/31/2022 $—
 (20,188) —
 —
 K/N
                315,265,134
 315,771,398
 19.45 %  
Educational Support Services      
Edmentum, Inc. First Lien Term Loan B LIBOR (Q) —
 8.50% 11.03% 6/9/2021 $6,187,476
 5,276,592
 6,187,478
 0.38 % B/N
Edmentum, Inc. Junior Revolving Facility Fixed —
 5.00% 5.00% 6/9/2020 $1,153,071
 1,153,071
 1,153,076
 0.07 % B/N
Edmentum, Inc. Second Lien Term Loan Fixed —
 7.00% PIK
 7.00% 12/8/2021 $7,719,061
 7,719,061
 7,719,069
 0.47 % B/N
Edmentum Ultimate Holdings, LLC Sr PIK Notes Fixed —
 8.50% 8.50% 6/9/2020 $3,375,453
 3,375,453
 3,375,453
 0.21 % B/N
Edmentum Ultimate Holdings, LLC Jr PIK Notes Fixed —
 10.00% 10.00% 6/9/2020 $15,931,540
 15,700,810
 11,152,078
 0.69 % B/N
                33,224,987
 29,587,154
 1.82 %  
Electronic Component Manufacturing      
Adesto Technologies Corporation First Lien Term Loan LIBOR (Q) 1.00% 8.75% 11.56% 5/8/2022 $17,816,424
 16,762,198
 16,979,052
 1.04 % N
Soraa, Inc. Tranche A Term Loan (4.33% Exit Fee) LIBOR (Q) 0.44% 9.33% 12.15% 12/31/2019 $5,425,530
 5,345,178
 5,042,759
 0.31 % L/N
                22,107,376
 22,021,811
 1.35 %  
                       
                       

14




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2018


Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)               
 

 

 

  
Equipment Leasing      
36th Street Capital Partners Holdings, LLC Senior Note Fixed —
 12.00% 12.00% 11/1/2020 $27,839,419
 $27,839,419
 $27,839,419
 1.71 % E/F/N
                       
Financial Investment Activities      
Aretec Group, Inc. (Cetera) Second Lien Term Loan LIBOR (M) —
 8.25% 10.77% 10/1/2026 $27,105,263
 26,835,011
 26,969,737
 1.66 % N
Credit Suisse AG (Cayman Islands) Asset-Backed Credit Linked Notes LIBOR (M) —
 9.50% 11.80% 4/12/2025 $38,000,000
 38,000,000
 36,540,800
 2.25 % H/I/N
HighTower Holding, LLC Second Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 8.25% 10.77% 1/31/2026 $—
 (123,019) (135,726) (0.01)% K/N
HighTower Holding, LLC Second Lien Term Loan LIBOR (M) 1.00% 8.25% 10.64% 1/31/2026 $15,080,645
 14,696,998
 14,748,871
 0.91 % N
Institutional Shareholder Services, Inc. Second Lien Term Loan LIBOR (Q) 1.00% 7.75% 10.55% 10/16/2025 $4,333,333
 4,314,098
 4,268,333
 0.26 % N
                83,723,088
 82,392,015
 5.07 %  
Health Care      
Pacific Coast Holdings Investment, LLC (KPC Healthcare) First Lien Term Loan LIBOR (M) 1.00% 7.50% 10.02% 2/14/2021 $29,288,064
 29,037,391
 29,727,385
 1.83 % N
                       
Insurance      
2-10 Holdco, Inc. First Lien Term Loan LIBOR (M) —
 6.25% 8.77% 10/31/2024 $4,583,333
 4,493,433
 4,491,667
 0.28 % N
2-10 Holdco, Inc. Sr Secured Revolver LIBOR (M) —
 6.25% 8.77% 10/31/2024 $—
 (8,102) (8,333) —
 K/N
Higginbotham Insurance Agency, Inc. Second Lien Term Loan LIBOR (M) 1.00% 7.25% 9.76% 12/19/2025 $16,417,578
 16,312,313
 16,253,402
 1.00 % N
IAS Investco, Inc. First Lien Delayed Draw Term Loan A LIBOR (M) 1.00% 5.50% 8.02% 1/24/2021 $5,610,000
 5,569,506
 5,565,120
 0.34 % N
IAS Investco, Inc. First Lien Delayed Draw Term Loan B LIBOR (M) 1.00% 5.50% 8.02% 1/24/2021 $600,000
 588,544
 586,286
 0.04 % N
IAS Investco, Inc. First Lien Term Loan LIBOR (M) 1.00% 5.50% 8.02% 1/24/2021 $4,178,571
 4,148,342
 4,145,143
 0.26 % N
US Apple Holdco, LLC (Ventiv Technology) First Lien FILO Term Loan LIBOR (Q) 1.00% 7.96% 10.57% 8/15/2020 $20,151,515
 20,017,875
 20,092,068
 1.24 % N
US Apple Holdco, LLC (Ventiv Technology) First Lien Incremental Tranche B FILO Term Loan LIBOR (Q) 1.00% 7.96% 10.57% 8/15/2020 $4,371,000
 4,329,254
 4,358,106
 0.27 % N
US Apple Holdco, LLC (Ventiv Technology) First Lien Incremental Tranche B FILO Term Loan LIBOR (Q) 1.00% 7.00% 9.81% 8/15/2020 $12,000,000
 11,941,059
 11,964,600
 0.74 % N
                67,392,224
 67,448,059
 4.17 %  
Lessors of Nonfinancial Licenses      
ABG Intermediate Holdings 2, LLC (Authentic Brands) Second Lien Term Loan LIBOR (M) 1.00% 7.75% 10.27% 9/29/2025 $15,000,000
 14,897,544
 14,775,000
 0.91 % N
Kenneth Cole Productions, Inc. First Lien FILO Term Loan LIBOR (Q) 1.00% 7.75% 10.31% 12/28/2023 $24,445,537
 24,261,768
 24,449,204
 1.50 % N
PSEB, LLC (Eddie Bauer) First Lien FILO II Term Loan Prime —
 7.25% 12.75% 10/12/2023 $10,793,402
 10,503,078
 10,496,583
 0.65 % N
PSEB, LLC (Eddie Bauer) First Lien Term Loan Prime —
 7.00% 12.25% 10/12/2023 $41,374,706
 40,270,155
 40,236,902
 2.48 % N
                89,932,545
 89,957,689
 5.54 %  
Management, Scientific, and Technical Consulting Services      
Dodge Data & Analytics, LLC First Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 7.00% 9.81% 5/1/2020 $939,723
 937,704
 938,078
 0.06 % N
Dodge Data & Analytics, LLC First Lien Term Loan LIBOR (Q) 1.00% 7.00% 9.81% 5/1/2020 $38,013,149
 37,925,182
 37,946,626
 2.33 % N
                38,862,886
 38,884,704
 2.39 %  
Metal Manufacturing      
Neenah Foundry Company First Lien Term Loan B LIBOR (Q) —
 6.50% 9.12% 12/13/2022 $5,218,642
 5,173,487
 5,166,455
 0.32 % N
                       
Motion Picture and Video Industries      
NEG Holdings, LLC (CORE Entertainment, Inc.) First Lien Term Loan LIBOR (Q) 1.00% 8.00% PIK
 10.80% 10/17/2022 $1,574,099
 1,574,099
 1,574,099
 0.10 % B/N
                       
                       
                       
                       

15




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 20172018


Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)Debt Investments (continued)     Debt Investments (continued)       
Other Information ServicesOther Information Services     
Discoverorg, LLC Second Lien Incremental Term Loan LIBOR (Q) 1.00% 8.50% 11.03% 2/26/2024 $3,419,277
 $3,404,541
 $3,435,005
 0.21 % N
Discoverorg, LLC Second Lien Term Loan LIBOR (Q) 1.00% 8.50% 11.03% 2/26/2024 $12,839,252
 12,738,498
 12,898,312
 0.79 % N
         16,143,039
 16,333,317
 1.00 % 
Other ManufacturingOther Manufacturing     
AGY Holding Corp. Sr Secured Term Loan Fixed —
 12.00% 12.00% 5/18/2020 $4,869,577
 4,869,577
 4,869,577
 0.30 % B/N
AGY Holding Corp. Second Lien Notes Fixed —
 11.00% 11.00% 11/15/2020 $9,777,740
 8,096,057
 9,777,740
 0.60 % B/E/N
AGY Holding Corp. Delayed Draw Term Loan Fixed —
 12.00% 12.00% 5/18/2020 $1,049,146
 1,049,146
 1,049,147
 0.06 % B/N
         14,014,780
 15,696,464
 0.96 % 
Other Real Estate ActivitiesOther Real Estate Activities     
Greystone Select Holdings, LLC First Lien Term Loan LIBOR (M) 1.00% 8.00% 10.51% 4/17/2024 $25,076,693
 24,873,125
 25,828,994
 1.59 % N
         

 

 

 
Other TelecommunicationsOther Telecommunications       Other Telecommunications     
Securus Technologies, Inc. Second Lien Term Loan LIBOR (Q) 1.00% 8.25% 9.87% 11/1/2025 $25,846,154
 $25,624,354
 $26,169,231
 1.63%  Second Lien Term Loan LIBOR (M) 1.00% 8.25% 10.77% 11/1/2025 $25,846,154
 25,636,438
 25,006,154
 1.54 % 
                              
PharmaceuticalsPharmaceuticals       Pharmaceuticals     
Nephron Pharmaceuticals Corporation First Lien FILO Term Loan LIBOR (M) 1.00% 8.75% 10.12% 8/7/2019 $41,439,197
 40,499,748
 41,298,303
 2.58% N
P&L Development, LLC First Lien Term Loan LIBOR (Q) 1.00% 8.00% 10.40% 5/18/2022 $489,643
 489,643
 460,460
 0.03 % N
                              
Plastics ManufacturingPlastics Manufacturing       Plastics Manufacturing     
Iracore International, Inc. First Lien Term Loan LIBOR (M) 1.00% 9.00% 10.63% 4/13/2021 $1,900,733
 1,900,733
 1,900,733
 0.12% B/N First Lien Term Loan LIBOR (Q) 1.00% 9.00% 11.63% 4/13/2021 $1,900,733
 1,900,733
 1,900,733
 0.12 % B/N
                              
PublishingPublishing       Publishing     
Bisnow, LLC First Lien Revolver LIBOR (Q) —
 9.00% N/A
 4/29/2021 $—
 (24,000) —
 —
 K/N First Lien Revolver LIBOR (Q) —
 7.50% 9.94% 9/21/2022 $—
 (14,023) (1,800) —
 K/N
Bisnow, LLC First Lien Term Loan LIBOR (Q) —
 9.00% 10.38% 4/29/2021 $7,962,890
 7,847,037
 8,050,482
 0.50% N First Lien Term Loan LIBOR (Q) —
 7.50% 9.94% 9/21/2022 $11,412,284
 11,255,232
 11,395,166
 0.70 % N
Patient Point Network Solutions, LLC First Lien Second Out Term Loan LIBOR (M) 1.00% 7.50% 9.07% 6/26/2022 $6,959,497
 6,876,410
 6,882,942
 0.43% N First Lien Term Loan LIBOR (Q) 1.00% 7.50% 10.30% 6/26/2022 $6,783,498
 6,717,412
 6,825,895
 0.42 % N
Patient Point Network Solutions, LLC Sr Secured Revolver LIBOR (M) 1.00% 7.50% N/A
 6/26/2022 $—
 (5,082) (4,845) —
 K/N Sr Secured Revolver LIBOR (Q) 1.00% 7.50% 10.30% 6/26/2022 $—
 (3,994) —
 —
 K/N
Patient Point Network Solutions, LLC First Lien Incremental Term Loan LIBOR (Q) 1.00% 7.50% 10.30% 6/26/2022 $1,307,421
 1,291,842
 1,315,592
 0.08 % N
         14,694,365
 14,928,579
 0.93%          19,246,469
 19,534,853
 1.20 % 
Radio and Television BroadcastingRadio and Television Broadcasting       Radio and Television Broadcasting     
NEP/NCP Holdco, Inc. Second Lien Term Loan LIBOR (M) 1.00% 7.00% 8.43% 1/23/2023 $11,536,391
 11,509,202
 11,637,334
 0.73% G
NEP II, Inc. Second Lien Term Loan LIBOR (M) —
 7.00% 9.52% 10/19/2026 $18,769,990
 18,676,292
 17,737,641
 1.09 % G/N
                              
Real Estate LeasingReal Estate Leasing       Real Estate Leasing     
Daymark Financial Acceptance, LLC First Lien Delayed Draw Term Loan LIBOR (Q) —
 9.50% 10.89% 1/12/2020 $14,000,000
 13,892,791
 13,949,600
 0.87% N First Lien Delayed Draw Term Loan LIBOR (M) —
 9.50% 11.85% 1/12/2020 $14,000,000
 13,945,511
 13,878,900
 0.85 % N
Home Partners of America, Inc. First Lien Term Loan LIBOR (M) 1.00% 7.00% 8.50% 10/13/2022 $5,000,000
 4,916,646
 5,100,000
 0.32% N First Lien Delayed Draw Term Loan LIBOR (M) 1.00% 6.25% 8.77% 10/13/2022 $—
 —
 19,286
 —
 N
         18,809,437
 19,049,600
 1.19% 
Restaurants       
RM OpCo, LLC (Real Mex) Convertible Second Lien Term Loan Tranche B-1 Fixed —
 8.50% 8.50% 3/30/2018 $2,117,626
 2,117,626
 862,509
 0.05% B/N
RM OpCo, LLC (Real Mex) First Lien Term Loan Tranche A Fixed —
 7.00% 7.00% 3/30/2018 $4,899,257
 4,615,870
 4,899,257
 0.31% B/N
RM OpCo, LLC (Real Mex) First Out Term Loan Tranche A Fixed —
 8.50% 8.50% 3/30/2018 $—
 (38,949) —
 —
 B/K/N
RM OpCo, LLC (Real Mex) Second Lien Term Loan Tranche B Fixed —
 8.50% 8.50% 3/30/2018 $10,398,622
 10,398,622
 —
 —
 B/C/N
RM OpCo, LLC (Real Mex) Second Lien Term Loan Tranche B-1 Fixed —
 8.50% 8.50% 3/30/2018 $3,322,997
 3,307,575
 1,353,457
 0.08% B/N
RM OpCo, LLC (Real Mex) Sr Convertible Second Lien Term Loan B Fixed —
 8.50% 8.50% 3/30/2018 $7,250,973
 7,250,973
 7,250,973
 0.45% B/N
Home Partners of America, Inc. First Lien Term Loan LIBOR (M) 1.00% 6.25% 8.77% 10/13/2022 $2,857,143
 2,817,711
 2,840,000
 0.17 % N
         27,651,717
 14,366,196
 0.89%          16,763,222
 16,738,186
 1.02 % 
RetailRetail       Retail     
Bon-Ton, Inc. First Lien Tranche A-1 Revolver LIBOR (Q) 1.00% 9.50% 10.91% 3/15/2021 $15,515,269
 15,341,877
 15,422,178
 0.96% N
USR Parent, Inc. (Staples) First Lien FILO Term Loan LIBOR (M) 1.00% 8.84% 10.18% 9/12/2022 $11,149,443
 10,879,867
 11,149,443
 0.70% N First Lien FILO Term Loan LIBOR (M) 1.00% 8.84% 11.18% 9/12/2022 $7,525,874
 7,376,741
 7,531,142
 0.46 % N
         26,221,744
 26,571,621
 1.66%                
Satellite TelecommunicationsSatellite Telecommunications       Satellite Telecommunications     
Avanti Communications Group, PLC (United Kingdom) Sr New Money Initial Note Fixed —
 10.00% 10.00% 10/1/2021 $1,368,694
 1,337,235
 1,108,642
 0.07% E/G/H/N Sr New Money Initial Note Fixed —
 9.00% PIK
 9.00% 10/1/2022 $1,524,339
 1,491,697
 1,152,172
 0.07 % E/G/H/N
Avanti Communications Group, PLC (United Kingdom) Sr Second-Priority PIK Toggle Note Fixed —
 10.00% 10.00% 10/1/2021 $3,492,521
 3,414,731
 2,828,942
 0.18% E/G/H/N Sr Second-Priority PIK Toggle Note Fixed —
 9.00% 9.00% 10/1/2022 $3,889,686
 3,808,971
 2,940,019
 0.18 % E/G/H/N
Avanti Communications Group, PLC (United Kingdom) Sr Secured Third-Priority Note Fixed —
 12.00% 12.00% 10/1/2023 $7,318,661
 4,070,879
 1,976,038
 0.12% E/G/H/N
         8,822,845
 5,913,622
 0.37% 
Scientific Research and Development Services       
Envigo Holdings, Inc. (BPA Laboratories, Inc.) First Lien Term Loan LIBOR (Q) —
 2.50% 4.19% 4/29/2020 $1,857,267
 1,675,566
 1,847,981
 0.11% 
Envigo Holdings, Inc. (BPA Laboratories, Inc.) Second Lien Term Loan LIBOR (Q) —
 2.50% 4.19% 4/29/2020 $4,189,589
 2,787,441
 4,147,693
 0.26% 
Envigo Holdings, Inc. (BPA Laboratories, Inc.) First Lien Term Loan LIBOR (M) 1.00% 8.50% 9.87% 11/3/2021 $34,843,373
 34,277,807
 34,930,481
 2.18% G
         38,740,814
 40,926,155
 2.55%          5,300,668
 4,092,191
 0.25 % 
                              
                              
                              
                              
               
               

16




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2018


Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)        
Scientific Research and Development Services      
Envigo Holdings, Inc. (BPA Laboratories, Inc.) (United Kingdom) First Lien Term Loan LIBOR (Q) —
 5.75% 8.55% 4/29/2020 $1,857,267
 $1,747,856
 $1,792,262
 0.11 % H/N
Envigo Holdings, Inc. (BPA Laboratories, Inc.) (United Kingdom) Second Lien Term Loan LIBOR (Q) —
 7.75% 10.55% 4/29/2020 $4,189,589
 2,787,441
 3,906,792
 0.24 % H/N
Envigo Holdings, Inc. (BPA Laboratories, Inc.) (United Kingdom) First Lien Term Loan LIBOR (M) 1.00% 8.50% 10.93% 11/3/2021 $34,494,622
 34,071,469
 32,769,891
 2.02 % G/H/N
                38,606,766
 38,468,945
 2.37 %  
Support Activities for Rail Transportation      
Florida East Coast Industries, LLC First Lien Term Loan B LIBOR (M) —
 6.50% 8.93% 12/13/2021 $3,214,286
 3,150,403
 3,182,143
 0.20 % N
                       
Traveler Arrangement      
CIBT Solutions, Inc. Second Lien Term Loan LIBOR (Q) 1.00% 7.75% 10.55% 6/1/2025 $7,611,914
 7,544,882
 7,516,765
 0.46 % G/N
                       
Utility System Construction      
Conergy Asia & ME Pte. Ltd (Singapore) First Lien Term Loan Fixed —
 10.00% 10.00% 5/26/2020 $1,773,807
 1,773,807
 1,773,807
 0.11 % F/H/N
GlassPoint Solar, Inc. First Lien Term Loan (4.0% Exit Fee) LIBOR (Q) —
 8.50% 11.25% 8/1/2020 $5,434,622
 5,387,085
 5,355,005
 0.33 % L/N
GlassPoint Solar, Inc. First Lien Term Loan (5.0% Exit Fee) LIBOR (Q) —
 11.44% 14.19% 8/1/2020 $2,951,368
 2,798,858
 2,958,156
 0.18 % L/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Bank Guarantee Credit Facility Fixed —
 0.00% 0.00% 5/26/2020 $14,155,971
 14,155,971
 11,682,923
 0.72 % C/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Revolving Credit Facility Fixed —
 0.00% 0.00% 5/26/2020 $8,668,850
 8,668,850
 2,922,269
 0.18 % C/F/H/N
                32,784,571
 24,692,160
 1.52 %  
Wholesalers      
FreePoint Commodities, LLC Second Lien Term Loan LIBOR (M) 1.00% 8.25% 10.71% 6/13/2023 $15,000,000
 14,855,083
 14,875,500
 0.92 % N
                       
Wired Telecommunications Carriers      
American Broadband Holding Company First Lien Term Loan LIBOR (Q) 1.25% 7.75% 10.55% 10/25/2022 $17,500,308
 17,152,164
 17,363,805
 1.07 % N
TPC Intermediate Holdings, LLC First Lien Delayed Draw Term Loan LIBOR (Q) 1.00% 6.00% 8.80% 5/15/2023 $807,706
 789,592
 794,042
 0.05 % N
                17,941,756
 18,157,847
 1.12 %  
                       
Total Debt Investments 1,526,248,949
 1,515,109,263
 93.22 %  

17




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 20172018


Issuer Instrument Ref Floor Spread Total Coupon Maturity Principal Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Debt Investments (continued)                 
        
Software        
Acronis International GmbH (Switzerland) First Lien Term Loan LIBOR (Q) 1.00% 13.50% 16.38% 7/16/2018 $17,446,997
 $17,452,145
 $17,446,997
 1.09% H/N
Actifio, Inc. First Lien Term Loan (2.0% Exit Fee) LIBOR (M) 1.00% 7.50% Cash +1.00% PIK
 10.00% 11/1/2020 $35,293,567
 34,828,518
 34,857,692
 2.18% L/N
ArcServe (USA), LLC Second Lien Term Loan LIBOR (Q) 0.50% 8.50% Cash + 1.25%PIK
 11.08% 1/31/2020 $30,643,867
 30,381,023
 30,179,612
 1.88% N
Autoalert, LLC First Lien Term Loan LIBOR (Q) 0.25% 5.75% Cash + 3.00%PIK
 10.13% 3/31/2019 $36,791,873
 36,573,746
 37,150,593
 2.32% N
Bond International Software, Inc. (United Kingdom) First Lien Term Loan LIBOR (M) 1.00% 10.00% 11.37% 11/4/2021 $26,358,696
 25,845,796
 26,008,125
 1.62% H/N
ECI Macola/Max Holding, LLC Second Lien Term Loan LIBOR (Q) 1.00% 8.00% 9.69% 9/19/2025 $24,325,623
 24,095,710
 24,295,216
 1.52% N
Fishbowl, Inc. First Lien Term Loan LIBOR (Q) —
 2.80% Cash + 8.45%PIK
 13.00% 1/26/2022 $19,778,356
 19,241,895
 19,548,927
 1.22% N
JAMF Holdings, Inc. First Lien Term Loan LIBOR (Q) 1.00% 8.00% 9.41% 11/13/2022 $14,160,797
 13,882,080
 13,877,581
 0.87% N
JAMF Holdings, Inc. Sr Secured Revolver LIBOR (Q) 1.00% 8.00% N/A
 11/13/2022 $—
 (23,635) (24,281) —
 K/N
Lithium Technologies, LLC First Lien Term Loan LIBOR (Q) 1.00% 8.00% 9.39% 10/3/2022 $20,884,731
 20,434,582
 20,414,823
 1.28% N
Lithium Technologies, LLC First Revolver LIBOR (Q) 1.00% 8.00% N/A
 10/3/2022 $—
 (32,719) (34,383) —
 K/N
Tradeshift Holdings, Inc. First Lien Delayed Draw Term Loan (7.0% Exit Fee) LIBOR (M) —
 8.88% 10.38% 9/1/2020 $16,058,724
 15,410,629
 15,575,433
 0.97% L/N
Utilidata, Inc. First Lien Delayed Draw Term Loan (1.0% Exit Fee) LIBOR (M) 0.62% 9.88% 11.25% 1/1/2019 $2,255,976
 2,216,688
 2,235,108
 0.14% L/N
Xactly Corporation First Lien Term Loan LIBOR (M) 1.00% 7.25% 8.82% 7/31/2022 $16,397,517
 16,089,310
 16,143,356
 1.01% N
Xactly Corporation Sr Secured Revolver LIBOR (M) 1.00% 7.25% N/A
 7/31/2022 $—
 (25,774) (21,785) —
 K/N
                256,369,994
 257,653,014
 16.10%  
Textile Furnishings Mills        
Lexmark Carpet Mills, Inc. First Lien Term Loan (1.5% Exit Fee) LIBOR (Q) 1.00% 10.00%Cash + 1.00%PIK
 12.34% 12/19/2019 $20,748,146
 20,748,146
 20,561,413
 1.28% L/N
Lexmark Carpet Mills, Inc. First Lien Term Loan B (1.5% Exit Fee) LIBOR (Q) 1.00% 10.00%Cash + 1.00%PIK
 12.34% 12/19/2019 $7,117,096
 7,028,637
 7,053,042
 0.44% L/N
                27,776,783
 27,614,455
 1.72%  
Traveler Arrangement        
CIBT Solutions, Inc. Second Lien Term Loan LIBOR (Q) 1.00% 7.75% 9.44% 6/1/2025 $7,611,914
 7,538,934
 7,726,092
 0.48%  
                       
Utility System Construction        
Conergy Asia & ME Pte. Ltd (Singapore) First Lien Term Loan Fixed —
 10.00% 10.00% 6/30/2018 $666,667
 666,667
 666,667
 0.04% F/H/N
GlassPoint Solar, Inc. First Lien Term Loan (5.0% Exit Fee) LIBOR (M) —
 11.44% 12.94% 8/1/2020 $3,642,021
 3,358,719
 3,554,248
 0.22% L/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Bank Guarantee Credit Facility LIBOR (Q) —
 8.00% PIK
 9.34% 7/2/2018 $16,233,432
 16,233,433
 16,233,431
 1.01% F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Revolving Credit Facility Fixed —
 0.00% 0.00% 7/2/2018 $7,048,850
 7,048,850
 7,048,850
 0.44% C/F/H/N
                27,307,669
 27,503,196
 1.71%  
Wired Telecommunications Carriers        
American Broadband Holding Company First Lien Term Loan LIBOR (Q) 1.25% 7.75% 9.12% 10/25/2022 $18,480,691
 18,032,158
 18,018,674
 1.13% N
                       
Wireless Telecommunications Carriers        
Gogo, LLC Sr Secured Notes Fixed —
 12.50% 12.50% 7/1/2022 $10,000,000
 10,000,000
 11,331,250
 0.71%
 E/G
                       
Total Debt Investments 1,458,302,831
 1,445,736,970
 90.29%
  
       
       
       
       
       
       
       
       
       
Issuer Instrument         Expiration Shares Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Equity Securities                      
Advertising, Public Relations and Marketing
Foursquare Labs, Inc. Warrants to Purchase Series E Preferred Stock         5/4/2027 1,125,000
 $185,450
 $130,725
 0.01% C/E/N
InMobi, Inc. (Singapore) Warrants to Purchase Common Stock         8/15/2027 1,327,869
 212,360
 340,200
 0.02% C/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
 558,388
 0.03% C/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
 164,095
 0.01% C/E/H/N
                767,709
 1,193,408
 0.07%  
Air Transportation
Aircraft Leased to United Airlines, Inc.                    
United N659UA-767, LLC (N659UA) Trust Beneficial Interests           683
 2,527,274
 2,826,708
 0.17% E/F/N
United N661UA-767, LLC (N661UA) Trust Beneficial Interests           688
 2,608,991
 2,896,083
 0.18% E/F/N
Epic Aero, Inc (One Sky) Common Stock         
 1,842
 855,313
 5,030,670
 0.31% C/N
                5,991,578
 10,753,461
 0.66%  
Business Support Services
Findly Talent, LLC Membership Units           708,229
 230,938
 33,995
 —
 C/E/N
STG-Fairway Holdings, LLC (First Advantage) Class A Units           803,961
 325,432
 2,708,384
 0.17% C/E/N
                556,370
 2,742,379
 0.17%  
Chemicals
Green Biologics, Inc. Common Stock           34,761,145
 18,522,593
 3,670,777
 0.23
 B/C/E/H/N
Nanosys, Inc. Warrants to Purchase Preferred Stock         3/29/2023 800,000
 605,266
 814,640
 0.05
 C/E/N
                19,127,859
 4,485,417
 0.28%  
Computer Systems Design and Related Services
Fidelis Topco LP Warrants to Purchase Series A Preferred Units         7/20/2028 21,888,917
 —
 663,234
 0.04
 C/E/N
Fidelis Topco LP Warrants to Purchase Series B Preferred Units         7/20/2028 24,972,917
 —
 756,679
 0.05
 C/E/N
                —
 1,419,913
 0.09%  
Data Processing and Hosting Services
Anacomp, Inc. Class A Common Stock           1,255,527
 26,711,048
 1,418,746
 0.09
 C/E/F/N
Domo, Inc. Warrants to Purchase Common Stock         12/30/2027 33,993
 264,624
 296,840
 0.02
 C/E/N
Snaplogic, Inc. Warrants to Purchase Series Preferred Stock         3/19/2028 1,860,000
 377,722
 2,510,070
 0.15
 C/E/N
                27,353,394
 4,225,656
 0.26%  
Diversified Software
Actifio, Inc. Warrants to Purchase Series G Preferred Stock         5/5/2027 1,052,651
 188,770
 456,745
 0.03
 C/E/N
Tradeshift, Inc. Warrants to Purchase Series D Preferred Stock         3/26/2027 1,712,930
 577,843
 647,316
 0.04
 C/E/N
Utilidata, Inc. Warrants to Purchase Preferred Stock         12/22/2022 719,998
 216,336
 9,936
 —
 C/E/N
                982,949
 1,113,997
 0.07%  
Educational Support Services
Edmentum Ultimate Holdings, LLC Class A Common Units           159,515
 680,226
 —
 —
 B/C/E/N
Edmentum Ultimate Holdings, LLC Warrants to Purchase Class A Units         2/23/2028 788,112
 —
 —
 —
 B/C/E/N
                680,226
 —
 —
  
                       
                       
                       
                       

1718




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 20172018


Issuer Instrument         Expiration Shares Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Equity Securities       
Advertising, Public Relations and Marketing                            
Foursquare Labs, Inc. Warrants to Purchase Series E Preferred Stock         5/4/2027 1,125,000
 $185,450
 $170,888
 0.01% C/E/N
InMobi, Inc. (Singapore) Warrants to Purchase Common Stock         8/15/2027 995,902
 159,270
 160,838
 0.01% C/E/H/N
InMobi, Inc. (Singapore) Warrants to Purchase Series E Preferred Stock         9/18/2025 1,049,996
 276,492
 485,518
 0.03% C/E/H/N
                621,212
 817,244
 0.05%  
Air Transportation                            
  
  
Aircraft Leased to United Airlines, Inc.            
  
  
  
  
United N659UA-767, LLC (N659UA) Trust Beneficial Interests           683
 2,889,115
 3,161,798
 0.20% E/F/N
United N661UA-767, LLC (N661UA) Trust Beneficial Interests           688
 2,992,621
 3,228,449
 0.20% E/F/N
Epic Aero, Inc. (One Sky) Warrants to Purchase Common Stock         12/4/2018 1,843
 855,313
 3,534,383
 0.22% C/E/N
                6,737,049
 9,924,630
 0.62%  
Business Support Services                           
  
   
Findly Talent, LLC Membership Units           708,229
 230,938
 57,012
 —
 C/E/N
STG-Fairway Holdings, LLC (First Advantage) Class A Units           803,961
 325,432
 950,925
 0.06% C/E/N
                556,370
 1,007,937
 0.06%   
Chemicals                           
  
   
Green Biologics, Inc. Warrants to Purchase Stock         10/1/2021 909,300
 272,807
 —
 —
 C/E/N
Nanosys, Inc. Warrants to Purchase Preferred Stock         3/29/2023 800,000
 605,266
 805,600
 0.05% C/E/N
                878,073
 805,600
 0.05%  
Communications Equipment Manufacturing      
HCT Acquisition, LLC (Globecomm) Membership Units           909,300
 531,575
 531,575
 0.03% B/C/N
                       
Data Processing and Hosting Services  
  
   
Anacomp, Inc. Class A Common Stock           1,255,527
 26,711,048
 1,418,746
 0.09% C/E/F/N
Domo, Inc. Warrants to Purchase Series D-2 Preferred Stock         12/30/2027 1,835,636
 264,624
 264,882
 0.02% C/E/N
                26,975,672
 1,683,628
 0.11%  
Educational Support Services  
  
   
Edmentum Ultimate Holdings, LLC Class A Common Units           159,515
 680,226
 —
 —
 B/C/E/N
                       
Electronic Component Manufacturing                       
  
   
Soraa, Inc. Warrants to Purchase Common Stock         8/29/2024 3,071,860
 478,899
 1,843
 —
 C/E/N
                       
Equipment Leasing                   
  
   
36th Street Capital Partners Holdings, LLC Membership Units           8,945,992
 8,945,992
 12,576,276
 0.79% C/E/F/N
                       
Financial Investment Activities                          
GACP I, LP (Great American Capital) Membership Units           16,349,004
 16,438,809
 16,463,873
 1.03% E/I/N
                       
Metal and Mineral Mining                                
EPMC HoldCo, LLC Membership Units           1,312,720
 —
 210,035
 0.01% B/C/E/N
                       
Motion Picture and Video Industries    
NEG Parent, LLC (Core Entertainment, Inc.) Class A Units           2,720,392
 2,772,807
 4,345,010
 0.27% C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Class A Warrants to Purchase Class A Units         10/17/2026 343,387
 196,086
 111,875
 0.01% C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Class B Warrants to Purchase Class A Units         10/17/2026 346,794
 198,032
 112,985
 0.01% C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Litigation Trust Units           407
 —
 1,201,138
 0.08% C/N
                3,166,925
 5,771,008
 0.37%  
Issuer Instrument         Expiration Shares Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Equity Securities (continued)                      
Electronic Component Manufacturing
Adesto Technologies Corporation Warrants to Purchase Common Stock         5/8/2024 436,320
 $846,724
 $76,356
 —
 C/E/N
Soraa, Inc. Warrants to Purchase Common Stock         8/29/2024 3,071,860
 478,899
 207,658
 0.01% C/E/N
                1,325,623
 284,014
 0.01%  
Equipment Leasing
36th Street Capital Partners Holdings, LLC Membership Units           15,744,416
 15,744,416
 18,931,734
 1.16% E/F/N
                       
Financial Investment Activities
GACP I, LP (Great American Capital) Membership Units           5,919,194
 5,919,194
 6,590,430
 0.41% E/I/N
GACP II, LP (Great American Capital) Membership Units           16,861,296
 16,861,296
 17,308,120
 1.06% E/I/N
                22,780,490
 23,898,550
 1.47%  
Metal and Mineral Mining
EPMC HoldCo, LLC Membership Units           1,312,720
 —
 26,254
 —
 B/C/E/N
                       
Motion Picture and Video Industries
NEG Parent, LLC (Core Entertainment, Inc.) Class A Units           2,720,392
 2,772,807
 6,543,086
 0.40% B/C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Class A Warrants to Purchase Class A Units         10/17/2026 343,387
 196,086
 364,299
 0.02% B/C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Class B Warrants to Purchase Class A Units         10/17/2026 346,794
 198,032
 367,914
 0.02% B/C/E/N
NEG Parent, LLC (Core Entertainment, Inc.) Litigation Trust Units           407
 —
 1,118,110
 0.07% B/C/N
                3,166,925
 8,393,409
 0.51%  
Other Information Services
SoundCloud, Ltd. (United Kingdom) Warrants to Purchase Preferred Stock         4/29/2025 946,498
 79,082
 45,148
 —
 C/E/H/N
                       
Other Manufacturing
AGY Holding Corp. Common Stock           1,333,527
 —
 —
 —
 B/C/E/N
KAGY Holding Company, Inc. Series A Preferred Stock           9,778
 1,091,200
 969,224
 0.06% B/C/E/N
                1,091,200
 969,224
 0.06%  
Plastics Manufacturing
Iracore Investments Holdings, Inc. Class A Common Stock           16,207
 4,177,710
 1,375,243
 0.08% B/C/E/N
                       
Radio and Television Broadcasting
Fuse Media, LLC Warrants to Purchase Common Stock         8/3/2022 233,470
 300,322
 —
 —
 C/E/N
                       
Retail
Shop Holding, LLC (Connexity) Class A Units           507,167
 480,049
 —
 —
 C/E/N
                       
Satellite Telecommunications
Avanti Communications Group, PLC (United Kingdom) Common Stock           26,576,710
 4,902,674
 847,398
 0.05% C/D/H
                       

1819




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 20172018


Issuer Instrument 
 
 
 
 Expiration Shares Cost Fair
Value		 % of Total
Cash and
Investments		 Notes
Equity Securities (continued)                 
        
Other Information Services      
SoundCloud, Ltd. (United Kingdom) Warrants to Purchase Preferred Stock         4/29/2025 946,498
 $79,082
 $45,148
 —
 C/E/H/N
                       
Other Manufacturing      
AGY Holding Corp. Common Stock           1,333,527
 —
 —
 —
 B/C/E/N
KAGY Holding Company, Inc. Series A Preferred Stock           9,778
 1,091,200
 11,034,519
 0.69% B/C/E/N
                1,091,200
 11,034,519
 0.69%  
Plastics Manufacturing      
Iracore Investments Holdings, Inc. Class A Common Stock           16,207
 4,177,710
 3,458,749
 0.22% B/C/E/N
                       
Radio and Television Broadcasting      
Fuse Media, LLC Warrants to Purchase Common Stock         8/3/2022 233,470
 300,322
 —
 —
 C/E/N
                       
Restaurants      
RM Holdco, LLC (Real Mex) Equity Participation           24
 —
 —
 —
 B/C/E/N
RM Holdco, LLC (Real Mex) Membership Units           13,161,000
 2,010,777
 —
 —
 B/C/E/N
                2,010,777
 —
 —
  
Retail      
Shop Holding, LLC (Connexity) Class A Units           507,167
 480,048
 —
 —
 C/E/N
       
Satellite Telecommunications      
Avanti Communications Group, PLC (United Kingdom) Common Stock           245,368
 3,086
 28,614
 —
 C/D/H
                       
Scientific Research and Development Services      
Lions Holdings, Inc. (BPA) Series A Warrants to Purchase Common Stock         4/29/2020 10,287
 —
 —
 —
 C/E/N
Lions Holdings, Inc. (BPA) Series B Warrants to Purchase Common Stock         4/29/2020 16,494
 —
 —
 —
 C/E/N
                —
 —
 —
  
Software      
Actifio, Inc. Warrants to Purchase Series F Preferred Stock         5/5/2027 1,052,651
 188,770
 186,424
 0.01% C/E/N
Blackline, Inc. Common Stock           1,797
 4,450
 58,941
 —
 C/J
Tradeshift, Inc. Warrants to Purchase Series D Preferred Stock         3/26/2027 1,712,930
 577,842
 590,790
 0.04% C/E/N
Utilidata, Inc. Warrants to Purchase Preferred Stock         12/22/2022 719,998
 216,335
 369,215
 0.02% C/E/N
                987,397
 1,205,370
 0.07%  
Utility System Construction      
Conergy Asia Holdings Limited (United Kingdom) Class B Shares           1,000,000
 1,000,000
 1,027,700
 0.06% C/E/F/H/N
Conergy Asia Holdings Limited (United Kingdom) Ordinary Shares           3,333
 7,833,333
 193,847
 0.01% C/E/F/H/N
GlassPoint Solar, Inc. Warrants to Purchase Series C-1 Preferred Stock         2/7/2027 1,100,000
 248,555
 250,360
 0.02% C/E/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Ordinary Shares           2,332,594
 —
 —
 —
 C/E/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Series B Preferred Shares           93,023
 1,395,349
 —
 —
 C/E/F/H/N
                10,477,237
 1,471,907
 0.09%  
                       
                       
                       
                       
                       
Issuer Instrument         Expiration Shares Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Equity Securities (continued)                      
Scientific Research and Development Services
Lions Holdings, Inc. (Envigo) (United Kingdom) Series A Warrants to Purchase Common Stock         4/29/2020 10,287
 $—
 $—
 —
 C/E/H/N
Lions Holdings, Inc. (Envigo) (United Kingdom) Series B Warrants to Purchase Common Stock         4/29/2020 16,494
 —
 —
 —
 C/E/H/N
                —
 —
 —
  
Utility System Construction      
Conergy Asia Holdings Limited (United Kingdom) Class B Shares           1,000,000
 1,000,000
 —
 —
 C/E/F/H/N
Conergy Asia Holdings Limited (United Kingdom) Ordinary Shares           3,333
 7,833,333
 —
 —
 C/E/F/H/N
GlassPoint Solar, Inc. Warrants to Purchase Series D Preferred Stock         2/7/2027 448,000
 76,950
 50,714
 —
 C/E/N
GlassPoint Solar, Inc. Warrants to Purchase Series C-1 Preferred Stock         2/7/2027 400,000
 248,555
 221,320
 0.01% C/E/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Ordinary Shares           2,332,594
 —
 —
 —
 C/E/F/H/N
Kawa Solar Holdings Limited (Conergy) (Cayman Islands) Series B Preferred Shares           93,023
 1,395,349
 —
 —
 C/E/F/H/N
                10,554,187
 272,034
 0.01%  
                       
Wired Telecommunications Carriers      
V Telecom Investment S.C.A. (Vivacom) (Luxembourg) Common Shares           1,393
 3,236,256
 1,199,288
 0.07% C/D/E/H/N
                       
                       
Total Equity Securities 123,299,019
 82,176,527
 5.06%  
         
Total Investments $1,649,547,968
 $1,597,285,790
    
                       
Cash and Cash Equivalents        
Cash Held on Account at Various Institutions               27,920,402
 1.72%  
Cash and Cash Equivalents   27,920,402
 1.72%  
                       
Total Cash and Investments $1,625,206,192
 100.00% M

19




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2017


Issuer Instrument         Expiration Shares Cost 
Fair
Value
 
% of Total
Cash and
Investments
 Notes
Equity Securities (continued)                 
         
Wired Telecommunications Carriers       
V Telecom Investment S.C.A. (Vivacom) (Luxembourg) Common Shares           1,393
 $3,236,256
 $1,757,777
 0.11% C/D/E/H/N
                       
Total Equity Securities  
 88,853,917
 68,795,733
 4.30%   
         
Total Investments $1,547,156,748
 $1,514,532,703
  
   
                       
Cash and Cash Equivalents  
  
  
   
Cash Held on Account at Various Institutions                
  
 65,625,237
 4.10%   
Wells Fargo Treasury Plus Government Money Market Fund             21,000,000
 1.31%  
Cash and Cash Equivalents (including restricted cash of $798,108) 86,625,237
 5.41%   
       
Total Cash and Investments  $1,601,157,940
 100.00% M

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-income producing.
(D)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.
(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.

20




BlackRock TCP Capital Corp.

Consolidated Schedule of Investments (Continued)

December 31, 2018


(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.

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 $865,427,957$634,002,472 and $655,674,364,$512,795,715, respectively, for the yeartwelve months ended December 31, 2017.2018. 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, 20172018 was $1,512,712,435$1,553,748,812 or 94.5%95.6% of total cash and investments of the Company. As of December 31, 2017,2018, approximately 11.4%15.6% of the total assets of the Company were not qualifying assets under Section 55(a) of the 1940 Act.
Swaps at December 31, 2017 were as follows:          
               
 Receive Pay Counter Party Maturity  Notional Amount  Fair Value Upfront payments/receipts Unrealized appreciation/depreciation
Interest at LIBOR plus 8.68% on USD 7,270,250 Interest at 8.00% on EUR 6,500,000 Wells Fargo Bank, N.A. 5/31/2019 USD 7,270,250/ EUR 6,500,000 $(603,745) $—
 $(603,745)


See accompanying notes to the consolidated financial statements.

20





BlackRock TCP Capital Corp.

Consolidated Statements of Operations (Unaudited)
 Three Months Ended September 30, Nine Months Ended September 30,
 2018 2017 2018 2017
Investment income       
Interest income:       
Companies less than 5% owned$44,534,087
 $38,318,839
 $127,316,161
 $113,121,497
Companies 5% to 25% owned604,116
 918,345
 1,737,510
 2,713,699
Companies more than 25% owned918,146
 9,830
 2,747,763
 1,137,955
PIK income:       
Companies less than 5% owned1,968,566
 801,806
 5,462,468
 3,895,424
Companies 5% to 25% owned1,151,270
 938,367
 3,576,948
 2,651,854
Companies more than 25% owned170,938
 1,353,910
 649,680
 3,582,861
Dividend income:       
Companies less than 5% owned—
 —
 —
 16,627
Companies more than 25% owned59,006
 —
 105,287
 —
Lease income:       
Companies more than 25% owned74,457
 74,457
 223,370
 223,370
Other income:       
Companies less than 5% owned—
 841,895
 —
 1,424,831
Companies 5% to 25% owned—
 31,486
 297,356
 94,458
Total investment income49,480,586
 43,288,935
 142,116,543
 128,862,576
        
Operating expenses       
Interest and other debt expenses10,071,574
 8,213,045
 29,817,623
 23,863,700
Management and advisory fees6,265,432
 5,611,249
 18,149,243
 15,624,277
Incentive fee6,127,983
  N/A
 17,505,818
  N/A
Administrative expenses599,559
 597,232
 1,794,023
 1,730,638
Legal fees, professional fees and due diligence expenses625,181
 288,180
 1,639,293
 1,127,387
Director fees212,135
 114,098
 545,718
 422,108
Insurance expense123,109
 111,585
 338,027
 327,725
Custody fees95,692
 85,035
 278,795
 244,427
Other operating expenses847,988
 700,780
 2,024,732
 2,036,376
Total operating expenses24,968,653
 15,721,204
 72,093,272
 45,376,638
        
Net investment income24,511,933
 27,567,731
 70,023,271
 83,485,938
        
Net realized and unrealized gain (loss) on investments and foreign currency
Net realized gain (loss):       
Investments in companies less than 5% owned1,106,469
 (4,663,896) 1,181,233
 (11,540,457)
Net realized gain (loss)1,106,469
 (4,663,896) 1,181,233
 (11,540,457)
        
Change in net unrealized appreciation/depreciation(10,427,026) (2,772,338) (24,706,701) (967,257)
Net realized and unrealized loss(9,320,557) (7,436,234) (23,525,468) (12,507,714)
        
Net increase in net assets from operations15,191,376
 20,131,497
 46,497,803
 70,978,224
        
Distributions of incentive allocation to the General Partner from:       
Net investment incomeN/A
 (5,513,546) N/A
 (16,697,188)
        
Net increase in net assets applicable to common shareholders resulting from operations$15,191,376
 $14,617,951
 $46,497,803
 $54,281,036
     

 

Basic and diluted earnings per common share$0.26
 $0.25
 $0.79
 $0.96
     

 

Basic and diluted weighted average common shares outstanding58,806,049
 58,792,204
 58,824,514
 56,390,954

See accompanying notes to the consolidated financial statements.

21





BlackRock TCP Capital Corp.

Consolidated Statements of Changes in Net AssetsOperations (Unaudited)
  Common Stock 
Paid in Capital
in Excess of Par
 
 Accumulated
 Net Investment
Income
 
 Accumulated
 Net Realized
Losses
 
 Accumulated
 Net Unrealized
Depreciation
 
Total Net
Assets
  Shares Par Amount 
               
Balance at December 31, 2016 53,041,900
 $53,042
 $944,426,650
 $12,533,289
 $(134,960,267) $(31,116,723) $790,935,991
               
Issuance of common stock in public offering, net 5,750,000
 5,750
 93,591,750
 —
 —
 —
 93,597,500
Issuance of common stock from at-the-market offerings, net 54,713
 55
 863,343
 —
 —
 —
 863,398
Issuance of common stock from dividend reinvestment plan 643
 —
 10,585
 —
 —
 —
 10,585
Net investment income —
 —
 —
 113,401,620
 —
 —
 113,401,620
Net realized and unrealized loss —
 —
 —
 —
 (20,667,272) (2,123,011) (22,790,283)
General Partner incentive allocation —
 —
 —
 (22,680,323) —
 —
 (22,680,323)
Regular dividends paid to common shareholders —
 —
 —
 (82,610,362) —
 —
 (82,610,362)
Tax reclassification of stockholders' equity in accordance with generally accepted accounting principles —
 —
 (36,380) (16,200,456) 16,236,836
 —
 —
Balance at December 31, 2017 58,847,256
 $58,847
 $1,038,855,948
 $4,443,768
 $(139,390,703) $(33,239,734) $870,728,126
               
Issuance of common stock from dividend reinvestment plan 563
 —
 8,029
 —
 —
 —
 8,029
Repurchase of common stock (47,818) (47) (691,134) —
 —
 —
 (691,181)
Net investment income —
 —
 —
 70,023,271
 —
 —
 70,023,271
Net realized and unrealized gain (loss) —
 —
 —
 —
 1,181,233
 (24,706,701) (23,525,468)
Regular dividends paid to common shareholders —
 —
 —
 (63,529,242) —
 —
 (63,529,242)
Balance at September 30, 2018 58,800,001
 $58,800
 $1,038,172,843
 $10,937,797
 $(138,209,470) $(57,946,435) $853,013,535
 Three Months Ended June 30, Six Months Ended June 30,
 2019 2018 2019 2018
Investment income       
Interest income (excluding PIK):       
Companies less than 5% owned$40,843,623
 $43,611,423
 $83,800,277
 $82,782,074
Companies 5% to 25% owned983,755
 485,488
 1,713,023
 1,133,394
Companies more than 25% owned902,019
 549,004
 1,798,275
 1,829,619
PIK interest income:       
Companies less than 5% owned4,160,072
 1,866,698
 5,838,088
 3,493,902
Companies 5% to 25% owned741,170
 1,326,720
 1,457,796
 2,425,678
Companies more than 25% owned—
 478,742
 —
 478,740
Dividend income:       
Companies more than 25% owned392,198
 28,379
 872,602
 46,281
Lease income:       
Companies more than 25% owned74,457
 74,457
 148,914
 148,914
Other income:       
Companies less than 5% owned77,331
 —
 86,179
 —
Companies 5% to 25% owned—
 —
 —
 297,356
Total investment income48,174,625
 48,420,911
 95,715,154
 92,635,958
        
Operating expenses       
Interest and other debt expenses11,144,631
 10,104,153
 21,832,263
 19,746,047
Management and advisory fees6,119,490
 6,177,575
 12,154,231
 11,883,811
Incentive fee4,830,994
 5,986,557
 10,184,410
 11,377,835
Administrative expenses599,559
 597,232
 1,199,118
 1,194,464
Legal fees, professional fees and due diligence expenses430,876
 579,809
 868,013
 1,014,111
Director fees202,328
 176,767
 391,126
 333,583
Insurance expense128,742
 108,053
 256,070
 214,918
Custody fees97,603
 91,248
 197,213
 183,103
Other operating expenses806,764
 653,288
 1,498,974
 1,176,745
Total operating expenses24,360,987
 24,474,682
 48,581,418
 47,124,617
        
Net investment income23,813,638
 23,946,229
 47,133,736
 45,511,341
        
Realized and unrealized gain (loss) on investments and foreign currency       
Net realized gain (loss):       
Investments in companies less than 5% owned(37) 707,539
 (300,359) 74,764
Investments in companies 5% to 25% owned—
 —
 43,320
 —
Net realized gain (loss)(37) 707,539
 (257,039) 74,764
        
Change in net unrealized appreciation/depreciation(34,637,483) (20,536,124) (33,578,759) (14,279,675)
Net realized and unrealized loss(34,637,520) (19,828,585) (33,835,798) (14,204,911)
        
Net increase (decrease) in net assets applicable to common shareholders resulting from operations$(10,823,882) $4,117,644
 $13,297,938
 $31,306,430
        
Basic and diluted earnings per common share$(0.18) $0.07
 $0.23
 $0.53
        
Basic and diluted weighted average common shares outstanding58,765,802
 58,823,534
 58,766,618
 58,833,900

See accompanying notes to the consolidated financial statements.


22





BlackRock TCP Capital Corp.

Consolidated Statements of Changes in Net Assets (Unaudited)
  Common Stock 
Paid in Capital
in Excess of Par
   
Total Net
Assets
  Shares Par Amount Distributable Earnings (Loss)
Balance at December 31, 2017 58,847,256
 $58,847
 $1,038,855,948
 $(168,186,669) $870,728,126
Issuance of common stock from dividend reinvestment plan 192
 —
 2,723
 —
 2,723
Repurchase of common stock (11,300) (11) (160,604) —
 (160,615)
Net investment income —
 —
 —
 21,565,113
 21,565,113
Net realized and unrealized gain —
 —
 —
 5,623,672
 5,623,672
Regular dividends paid to common shareholders —
 —
 —
 (21,184,004) (21,184,004)
Balance at March 31, 2018 58,836,148
 $58,836
 $1,038,698,067
 $(162,181,888) $876,575,015
           
Issuance of common stock from dividend reinvestment plan 182
 —
 2,620
 —
 2,620
Repurchase of common stock (23,316) (23) (338,035) —
 (338,058)
Net investment income —
 —
 —
 23,946,228
 23,946,228
Net realized and unrealized gain —
 —
 —
 (19,828,583) (19,828,583)
Regular dividends paid to common shareholders —
 —
 —
 (21,174,966) (21,174,966)
Balance at June 30, 2018 58,813,014
 $58,813
 $1,038,362,652
 $(179,239,209) $859,182,256
           
           
  Common Stock 
Paid in Capital
in Excess of Par
   
Total Net
Assets
  Shares Par Amount Distributable Earnings (Loss)
Balance at December 31, 2018 58,774,607
 $58,775
 $1,000,073,183
 $(169,657,231) $830,474,727
Issuance of common stock from dividend reinvestment plan 193
 —
 2,738
 —
 2,738
Repurchase of common stock (9,000) (9) (125,670) —
 (125,679)
Net investment income —
 —
 —
 23,320,098
 23,320,098
Net realized and unrealized gain —
 —
 —
 801,722
 801,722
Regular dividends paid to common shareholders —
 —
 —
 (21,155,619) (21,155,619)
Balance at March 31, 2019 58,765,800
 $58,766
 $999,950,251
 $(166,691,030) $833,317,987
           
Issuance of common stock from dividend reinvestment plan 200
 —
 2,843
 —
 2,843
Net investment income —
 —
 —
 23,813,638
 23,813,638
Net realized and unrealized gain —
 —
 —
 (34,637,520) (34,637,520)
Regular dividends paid to common shareholders —
 —
 —
 (21,155,688) (21,155,688)
Balance at June 30, 2019 58,766,000
 $58,766
 $999,953,094
 $(198,670,600) $801,341,260









See accompanying notes to the consolidated financial statements.

23





BlackRock TCP Capital Corp.

Consolidated Statements of Cash Flows (Unaudited)
Nine Months Ended September 30,Six Months Ended June 30,
2018 20172019 2018
Operating activities      
Net increase in net assets applicable to common shareholders resulting from operations$46,497,803
 $54,281,036
$13,297,938
 $31,306,430
Adjustments to reconcile net increase in net assets applicable to common shareholders resulting from operations to net cash provided by (used in) operating activities:   
Net realized (gain)/loss(1,181,233) 11,540,457
Adjustments to reconcile net increase in net assets applicable to common shareholders resulting from operations to net cash used in operating activities:   
Net realized loss (gain)257,039
 (74,764)
Change in net unrealized appreciation/depreciation of investments24,685,820
 973,415
33,578,725
 14,273,455
Net amortization of investment discounts and premiums(7,782,322) (10,569,705)(6,821,574) (4,819,559)
Amortization of original issue discount on convertible debt881,772
 763,012
615,313
 583,820
Interest and dividend income paid in kind(9,689,096) (10,130,140)(7,295,884) (6,398,320)
Amortization of deferred debt issuance costs2,956,637
 2,646,451
1,837,576
 2,029,881
Changes in assets and liabilities:      
Purchases of investment securities(447,934,418) (642,264,119)(375,078,270) (287,490,866)
Proceeds from sales, maturities and pay downs of investments395,717,322
 434,061,754
263,463,486
 184,249,156
Increase in accrued interest income - companies less than 5% owned(2,776,174) (1,809,544)
Decrease (increase) in accrued interest income - companies less than 5% owned1,810,987
 (3,941,666)
Increase in accrued interest income - companies 5% to 25% owned(308,976) (1,284,273)(361,598) (43,985)
Decrease (increase) in accrued interest income - companies more than 25% owned(64,173) 13,845
Decrease (increase) in receivable for investments sold372,477
 (13,414,257)
Increase in prepaid expenses and other assets(2,268,006) (2,978,344)
Increase in payable for investments purchased36,565,907
 73,196,164
Increase in incentive compensation payable144,848
 796,712
Decrease in interest payable(2,326,231) (487,058)
Increase in payable to the Advisor511,782
 768,459
Increase in accrued interest income - companies more than 25% owned(88,212) (34,542)
Increase in receivable for investments sold(433,969) (7,506,136)
Decrease (increase) in prepaid expenses and other assets3,068,242
 (1,660,227)
Increase (decrease) in payable for investments purchased11,093,056
 (9,017,359)
Increase (decrease) in incentive compensation payable(1,009,352) 3,422
Increase (decrease) in interest payable(17,115) 481,898
Decrease in payable to the Advisor(328,176) (800,703)
Increase in management and advisory fees payable66,226
 —
Increase (decrease) in accrued expenses and other liabilities59,923
 (408,038)82,159
 (80,675)
Net cash provided by (used in) operating activities34,063,662
 (104,304,173)
Net cash used in operating activities(62,263,403) (88,940,740)
      
Financing activities      
Borrowings330,953,697
 321,000,000
309,500,000
 291,953,697
Repayments of debt(293,953,697) (352,500,000)(208,500,000) (216,000,000)
Payments of debt issuance costs(3,193,847) (2,652,000)(2,368,092) (3,193,847)
Regular dividends paid to common shareholders(63,529,242) (61,425,414)
Dividends paid to common shareholders(42,311,307) (42,358,970)
Repurchase of common shares(691,181) —
(125,679) (498,639)
Proceeds from issuances of convertible debt—
 124,626,250
Proceeds from shares issued in connection with dividend reinvestment plan8,029
 7,854
5,581
 5,343
Proceeds from common shares sold, net of underwriting and offering costs—
 93,597,500
Net cash provided by (used in) financing activities(30,406,241) 122,654,190
Net cash provided by financing activities56,200,503
 29,907,584
      
Net increase in cash and cash equivalents (including restricted cash)3,657,421
 18,350,017
Net decrease in cash and cash equivalents (including restricted cash)(6,062,900) (59,033,156)
Cash and cash equivalents (including restricted cash) at beginning of period86,625,237
 53,579,868
27,920,402
 86,625,237
Cash and cash equivalents (including restricted cash) at end of period$90,282,658
 $71,929,885
$21,857,502
 $27,592,081
      
Supplemental cash flow information      
Interest payments$27,442,833
 $19,746,066
$18,978,694
 $15,982,231
Excise tax payments$86,106
 $528,603
$—
 $86,106







See accompanying notes to the consolidated financial statements.

2324





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited)
 
SeptemberJune 30, 20182019



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 treatedregulated 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 inthrough the Company's wholly-owned subsidiaries, Special Value Continuation Partners LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company (the “Operating Company”("SVCP"), or in one of the Operating Company’s wholly owned subsidiaries, TCPC Funding I, LLC, a Delaware limited liability company (“TCPC Funding”), and TCPC SBIC, LP, a Delaware limited partnership (the “SBIC”). The Operating CompanySVCP was organized as a limited liability partnership and had elected to be treatedregulated as a BDC under the 1940 Act through July 31, 2018. On August 1, 2018, the Operating CompanySVCP 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, (in such capacity prior to termination, the “General Partner”), 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, the Operating Company,SVCP, TCPC Funding 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 and the SBIC have elected to be treated as partnerships for U.S. federal income tax purposes. The Operating CompanySVCP 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 both the Company and the Operating 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, 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 the Operating Company’sSVCP’s assets to the Advisor. The board of directors consists of eight persons, six of whom are independent.

2. Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements of the Company have been prepared in accordance with accounting principles

24





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

2. Summary of Significant Accounting Policies — (continued)

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

25





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

2. Summary of Significant Accounting Policies — (continued)

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 the Operating Company, either directly or through eitherSVCP, TCPC Funding 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 Operating 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 Operating 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.

Pursuant to this policy, the Advisor provides recent portfolio company financial statements and other reporting materials to independent valuation firms as applicable, which firms evaluate such materials 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 audit committee of the board of directors discusses the valuations, and the board of directors approves the fair value of the investments in good faith based on the input of the Advisor, the respective independent valuation firms as applicable, and the audit committee of 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

25





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

2. Summary of Significant Accounting Policies — (continued)

until the individual investments are actually liquidated. 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 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.


26





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

2. Summary of Significant Accounting Policies — (continued)

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.

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 SeptemberJune 30, 2018,2019, the Company’s investments were categorized as follows:
Level Basis for Determining Fair Value Bank Debt 
Other
Corporate Debt
 
Equity
Securities
 Basis for Determining Fair Value Bank Debt 
Other
Corporate Debt
 
Equity
Securities
1 Quoted prices in active markets for identical assets $—
 $—
 $1,767,051
 Quoted prices in active markets for identical assets $—
 $—
 $573,610
2 Other direct and indirect observable market inputs * 102,971,368
 —
 —
 Other direct and indirect observable market inputs * 169,724,801
 —
 —
3 Independent third-party valuation sources that employ significant unobservable inputs 1,262,713,938
 110,635,968
 80,263,468
 Independent third-party valuation sources that employ significant unobservable inputs 1,331,057,822
 108,311,844
 77,432,228
3 Advisor valuations with significant unobservable inputs —
 —
 1,761,091
 Advisor valuations with significant unobservable inputs —
 —
 2,081,964
 $1,365,685,306
 $110,635,968
 $83,791,610
Total $1,500,782,623
 $108,311,844
 $80,087,802
______________
*For example, quoted prices in inactive markets or quotes for comparable investments


2627





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)
 
SeptemberJune 30, 20182019

2. Summary of Significant Accounting Policies — (continued)

Unobservable inputs used in the fair value measurement of Level 3 investments as of SeptemberJune 30, 20182019 included the following:
Asset Type Fair Value Valuation Technique Unobservable Input Range (Weighted Avg.) Fair Value Valuation Technique Unobservable Input 
Range (Weighted Avg.) †
Bank Debt $1,043,775,765
 Income approach Discount rate  7.3% - 31.5% (12.5%) 1,175,005,956
 Income approach Discount rate 6.1% - 48.2% (10.8%)
 158,460,126
 Market quotations Indicative bid/ask quotes  1 - 3 (1) 85,012,614
 Market quotations Indicative bid/ask quotes 1 (1)
 24,173,885
 Market comparable companies Revenue multiples  0.3x - 2.9x (2.0x) 41,092,263
 Market comparable companies Revenue multiples 1.5x - 3.0x (2.3x)
 36,304,162
 Market comparable companies EBITDA multiples  0.9x - 10.5x (7.6x) 29,946,989
 Market comparable companies EBITDA multiples 6.5x - 12.7x (11.7x)
Other Corporate Debt 38,026,600
 Income approach Discount rate 12.8% (12.8%) 41,251,114
 Income approach Discount rate 12.7% - 34.0% (14.7%)
 33,015,012
 Market quotations Indicative bid/ask quotes  1 (1)
 28,434,418
 Market comparable companies Book value multiples
 1.4x (1.4x) 28,314,000
 Market quotations Indicative bid/ask quotes 1 (1)
 1,382,199
 Market comparable companies Revenue multiples  2.6x (2.6x) 28,593,169
 Market comparable companies Book value multiples
 1.3x (1.3x)
 9,777,739
 Market comparable companies EBITDA multiples  9.4x (9.4x) 10,153,561
 Market comparable companies EBITDA multiples 9.6x (9.6x)
Equity 7,062,810
 Income approach Discount rate 4.5% - 17.0% (6.5%) 5,358,674
 Income approach Discount rate 4.5% (4.5%)
 23,349,409
 Market quotations Indicative bid/ask quotes  1 (1) 3,373,139
 Market quotations Indicative bid/ask quotes 1 (1)
 13,158,918
 Option Pricing Model EBITDA/Revenue multiples  1.6x - 10.5x (6.4x) 8,438,489
 Option Pricing Model EBITDA/Revenue multiples 0.6x - 19.3x (3.1x)
   Implied volatility  30.0% - 125.0% (49.7%)   Implied volatility 30.0% - 200.0% (49.4%)
   Yield  0.0% (0.0%)   Yield 0.0% (0.0%)
   Term  0.4 years - 3.5 years (2.1 years)   Term 0.5 years - 3.5 years (2.2 years)
 1,480,970
 Market comparable companies Revenue multiples  0.3x - 2.9x (1.1x) 1,204,661
 Market comparable companies Revenue multiples 0.4x - 3.0x (1.1x)
 14,175,736
 Market comparable companies EBITDA multiples  0.9x - 10.5x (8.2x) 18,762,206
 Market comparable companies EBITDA multiples 5.0x - 12.7x (8.5x)
 22,796,716
 Other *  N/A  N/A 22,082,923
 Market comparable companies Book value multiples
 1.3x (1.3x)
 $1,455,374,465
  20,294,100
 Other *  N/A N/A
 $1,518,883,858
 
______________
*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.
*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.
†Weighted by fair value

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
 



2728





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)
 
SeptemberJune 30, 20182019

2. Summary of Significant Accounting Policies — (continued)

Changes in investments categorized as Level 3 during the three months ended SeptemberJune 30, 20182019 were as follows:

Independent Third-Party ValuationIndependent Third-Party Valuation
Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Beginning balance$1,313,883,048
 $114,727,490
 $77,048,806
$1,381,240,151
 $80,446,810
 $81,544,809
Net realized and unrealized gains (losses)(12,399,759) (2,632,446) 5,218,251
(28,259,140) (1,935,636) (3,747,919)
Acquisitions *144,664,104
 (4,115,432) 3,704,001
204,334,925
 802,037
 1,480,877
Dispositions(197,230,787) 2,656,356
 (5,707,590)(109,775,921) —
 (1,845,539)
Transfers into Level 3 †
13,797,332
 —
 —
—
 28,998,633
 —
Transfers out of Level 3 ‡
(116,482,193) —
 —
Ending balance$1,262,713,938
 $110,635,968
 $80,263,468
$1,331,057,822
 $108,311,844
 $77,432,228
          
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)$(10,826,186) $(2,632,447) $4,967,192
$(27,967,502) $(1,935,636) $(3,747,919)
______________
*Includes payments received in kind and accretion of original issue and market discounts

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

 Advisor Valuation
 Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Beginning balance$—
 $—
 $1,731,295
Net realized and unrealized gains (losses)—
 —
 29,796
Ending balance$—
 $—
 $1,761,091
      
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)$—
 $—
 $29,796

There were no transfers between Level 1 and 2 during the three months ended September 30, 2018.

28





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

2. Summary of Significant Accounting Policies — (continued)

Changes in investments categorized as Level 3 during the nine months ended September 30, 2018 were as follows:

 Independent Third-Party Valuation
 Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Beginning balance$1,239,746,177
 $78,011,815
 $66,977,237
Net realized and unrealized gains (losses)(21,042,870) (2,746,039) 4,317,752
Acquisitions *372,824,279
 37,741,071
 21,100,155
Dispositions(346,675,061) (2,370,879) (12,131,676)
Transfers into Level 3 †
54,723,486
 —
 —
Transfers out of Level 3 ‡
(36,862,073) —
 —
Ending balance$1,262,713,938
 $110,635,968
 $80,263,468
      
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)$(18,173,326) $(4,841,557) $4,156,499
______________
*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 investmentsseven investment that werewas transferred to Level 2 due to increased observable market activity

Advisor ValuationAdvisor Valuation
Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Beginning balance$116,662
 $—
 $1,730,941
$—
 $—
 $2,341,267
Net realized and unrealized gains (losses)(623) —
 30,150
—
 —
 (259,303)
Acquisitions *623
 —
 —
Dispositions(116,662) —
 —
Ending balance$—
 $—
 $1,761,091
$—
 $—
 $2,081,964
          
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)$—
 $—
 $30,150
$—
 $—
 $(259,303)
______________
*Includes payments received in kind and accretion of original issue and market discounts

There were no transfers between Level 1 and 2 during the nine months ended September 30, 2018.



29





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)
 
SeptemberJune 30, 20182019

2. Summary of Significant Accounting Policies — (continued)

Changes in investments categorized as Level 3 during the six months ended June 30, 2019 were as follows:

 Independent Third-Party Valuation
 Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Beginning balance$1,369,456,684
 $78,250,150
 $79,804,988
Net realized and unrealized gains (losses)(31,126,651) (498,941) (1,889,248)
Acquisitions *350,660,759
 1,562,002
 7,481,923
Dispositions(250,789,839) —
 (7,150,795)
Transfers into Level 3 †
9,339,062
 28,998,633
 —
Transfer out of Level 3 ‡
(116,482,193) —
 —
Reclassifications within Level 3 §
—
 —
 (814,640)
Ending balance$1,331,057,822
 $108,311,844
 $77,432,228
      
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)$(29,283,502) $(498,941) $(1,889,248)
______________
*
Includes payments received in kind and accretion of original issue and market discounts

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

‡    Comprised of seven investment that was 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
Beginning balance$—
 $—
 $1,524,143
Net realized and unrealized gains (losses)—
 —
 (213,522)
Dispositions—
 —
 (43,297)
Reclassifications within Level 3 *—
 —
 814,640
Ending balance$—
 $—
 $2,081,964
      
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)$—
 $—
 $(230,564)
*
Comprised of one investment that was reclassified from Independent Third-Party Valuation

30





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

2. Summary of Significant Accounting Policies — (continued)

At December 31, 2017,2018, the Company’s investments were categorized as follows:
Level Basis for Determining Fair Value Bank Debt 
Other
Corporate Debt
 
Equity
Securities
 Basis for Determining Fair Value Bank Debt 
Other
Corporate Debt
 
Equity
Securities
1 Quoted prices in active markets for identical assets $—
 $—
 $87,555
 Quoted prices in active markets for identical assets $—
 $—
 $847,398
2 Other direct and indirect observable market inputs * 116,531,066
 11,331,250
 —
 Other direct and indirect observable market inputs * 38,403,794
 28,998,633
 —
3 Independent third-party valuation sources that employ significant unobservable inputs 1,239,746,177
 78,011,815
 66,977,237
 Independent third-party valuation sources that employ significant unobservable inputs 1,369,456,684
 78,250,150
 79,804,988
3 Advisor valuations with significant unobservable inputs 116,662
 —
 1,730,941
 Advisor valuations with significant unobservable inputs —
 —
 1,524,143
Total $1,356,393,905
 $89,343,065
 $68,795,733
 $1,407,860,478
 $107,248,783
 $82,176,529
______________
*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, 20172018 included the following:
Asset Type Fair Value Valuation Technique Unobservable Input Range (Weighted Avg.)
Bank Debt $1,089,247,230
 Income approach Discount rate  5.1% - 32.5% (12.5%)
  92,717,995
 Market quotations Indicative bid/ask quotes  1 - 2 (1)
  22,199,690
 Market comparable companies Revenue multiples  0.3x - 2.9x (1.2x)
  35,697,924
 Market comparable companies EBITDA multiples  3.5x - 10.0x (6.9x)
Other Corporate Debt 64,271,565
 Market quotations Indicative bid/ask quotes  1 - 8 (1)
  4,472,250
 Market comparable companies Revenue multiples  2.0x (2.0x)
  9,268,000
 Market comparable companies EBITDA multiples  7.9x (7.9x)
Equity 8,119,621
 Income approach Discount rate  3.7% - 19.0% (7.0%)
  15,745,225
 Market quotations Indicative bid/ask quotes  1 (1)
  7,090,750
 Option Pricing Model EBITDA/Revenue multiples  1.9x - 12.2x (5.1x)
      Implied volatility  25.0% - 95.0% (55.0%)
      Risk free rate  1.3% - 2.0% (1.9%)
      Yield  0.0% (0.0%)
      Term  0.1 years - 4.5 years (2.5 years)
  1,475,758
 Market comparable companies Revenue multiples  0.3x - 2.9x (1.0x)
  19,812,951
 Market comparable companies EBITDA multiples  3.5x - 15.3x (8.9x)
  16,463,873
 Other *  N/A  N/A
  $1,386,582,832
      
______________
*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.



30





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

2. Summary of Significant Accounting Policies — (continued)

Changes in investments categorized as Level 3 during the three months ended September 30, 2017 were as follows:
 Independent Third-Party Valuation
 Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Beginning balance$1,131,662,534
 $95,645,627
 $65,359,889
Net realized and unrealized gains (losses)(1,698,366) (2,413,331) (539,557)
Acquisitions *219,258,618
 10,349,086
 11,837,810
Dispositions(109,506,611) (31,735,226) (13,440,362)
Ending balance$1,239,716,175
 $71,846,156
 $63,217,780
      
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)$(1,940,418) $(2,413,332) $(2,625,120)
Asset Type Fair Value Valuation Technique Unobservable Input 
Range (Weighted Avg.) †
Bank Debt 1,134,622,267
 Income approach Discount rate 7.5% - 42.2% (12.3%)
  193,682,097
 Market quotations Indicative bid/ask quotes 1 - 2 (1)
  14,793,577
 Market comparable companies Revenue multiples 2.9x (2.9x)
  26,358,743
 Market comparable companies EBITDA multiples 0.8x - 11.0x (8.7x)
Other Corporate Debt 40,632,991
 Income approach Discount rate 14.6% - 17.8% (14.9%)
  27,839,419
 Market comparable companies Book value multiples
 1.2x (1.2x)
  9,777,740
 Market comparable companies EBITDA multiples 10.0x (10.0x)
Equity 6,410,413
 Income approach Discount rate 4.7% - 13.0% (5.6%)
  2,343,653
 Market quotations Indicative bid/ask quotes 1 (1)
  8,682,278
 Option Pricing Model EBITDA/Revenue multiples 2.0x - 11.0x (5.5x)
      Implied volatility 30.0% - 200.0% (44.7%)
      Yield 0.0% (0.0%)
      Term 0.4 years - 3.5 years (1.8 years)
  5,123,517
 Market comparable companies Revenue multiples 0.4x - 2.9x (2.0x)
  15,938,987
 Market comparable companies EBITDA multiples 0.8x - 11.0x (8.5x)
  18,931,733
 Market comparable companies Book value multiples
 1.2x (1.2x)
  23,898,550
 Other *  N/A N/A
  $1,529,035,965
      
______________
*Includes payments receivedFair value was determined based on the most recently available net asset value of the issuer adjusted for identified changes in kind and accretionthe valuations of original issue and market discountsthe underlying portfolio of the issuer through the measurement date.
†Weighted by fair value

 Advisor Valuation
 Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Beginning balance$—
 $—
 $2,221,444
Net realized and unrealized gains (losses)—
 —
 (69,630)
Dispositions—
 —
 (1,687)
Ending balance$—
 $—
 $2,150,127
      
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)$—
 $—
 $(69,630)

There were no transfers between Level 1 and 2 during the three months ended September 30, 2017.


31





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)
 
SeptemberJune 30, 20182019

2. Summary of Significant Accounting Policies — (continued)

Changes in investments categorized as Level 3 during the ninethree months ended SeptemberJune 30, 20172018 were as follows:

Independent Third-Party ValuationIndependent Third-Party Valuation
Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Beginning balance$1,036,044,457
 $101,934,853
 $64,521,901
$1,331,139,346
 $117,620,538
 $70,267,145
Net realized and unrealized gains (losses)(17,582,409) (3,758,757) 34,522
(12,950,140) 420,760
 (2,772,657)
Acquisitions *559,544,251
 25,582,996
 28,384,223
105,988,908
 798,878
 12,771,894
Dispositions(307,732,609) (51,912,936) (27,845,217)(87,230,325) (4,112,686) (3,217,576)
Transfers out of Level 3 †
(30,557,515) —
 —
(23,064,741) —
 —
Reclassifications within Level 3 ‡
—
 —
 (1,877,649)
Ending balance$1,239,716,175
 $71,846,156
 $63,217,780
$1,313,883,048
 $114,727,490
 $77,048,806
          
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)$(9,121,109) $(3,393,578) $819,830
$(12,344,234) $(1,674,757) $(2,772,655)
______________
*Includes payments received in kind and accretion of original issue and market discounts

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

‡Comprised of three investments that were reclassified to Advisor Valuation

Advisor ValuationAdvisor Valuation
Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Beginning balance$107,199
 $—
 $1,560,161
$—
 $—
 $1,744,043
Net realized and unrealized gains (losses)65,797
 —
 (1,285,996)—
 —
 (12,748)
Acquisitions *(20,962) —
 —
Dispositions(152,034) —
 (1,687)
Reclassifications within Level 3 †
—
 —
 1,877,649
Ending balance$—
 $—
 $2,150,127
$—
 $—
 $1,731,295
     
 
 
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)$—
 $—
 $(1,285,996)$—
 $—
 $(12,748)








32





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

2. Summary of Significant Accounting Policies — (continued)

Changes in investments categorized as Level 3 during the six months ended June 30, 2018 were as follows:

 Independent Third-Party Valuation
 Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Beginning balance$1,239,746,177
 $78,011,815
 $66,977,237
Net realized and unrealized gains (losses)(8,643,111) (113,593) (900,499)
Acquisitions *228,160,175
 41,856,503
 17,396,154
Dispositions(149,444,274) (5,027,235) (6,424,086)
Transfers into Level 3 †
40,926,154
 —
 —
Transfers out of Level 3 ‡
(36,862,073) —
 —
Ending balance$1,313,883,048
 $114,727,490
 $77,048,806
      
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)$(7,347,140) $(2,209,110) $(810,693)
______________
*Includes payments received in kind and accretion of original issue and market discounts

†Comprised of three investments that were reclassifiedtransferred from Independent Third-Party ValuationLevel 2 due to reduced trading volumes

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

There were no transfers between Level 1 and 2 during the nine months ended September 30, 2017.

 Advisor Valuation
 Bank Debt 
Other
Corporate Debt
 
Equity
Securities
Beginning balance$116,662
 $—
 $1,730,941
Net realized and unrealized gains (losses)(623) —
 354
Acquisitions *623
 —
 —
Dispositions(116,662) —
 —
Ending balance$—
 $—
 $1,731,295
      
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)$—
 $—
 $354
______________
*Includes payments received in kind and accretion of original issue and market discounts

3233





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)
 
SeptemberJune 30, 20182019

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 brokerage firms and the custodian bank. Cash equivalents consist of highly liquid investments with an original maturity of generally three months or less. Cash equivalents are carried at amortized cost which approximates fair value. Cash equivalents are classified as Level 1 in the GAAP valuation hierarchy. There was no restricted cash at SeptemberJune 30, 2018. Restricted cash at2019 or December 31, 2017 was comprised of amounts held as collateral against an outstanding cross-currency interest rate swap.2018.

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 Investments

The Company may invest in instruments traded in foreign countries and denominated in foreign currencies. Foreign currency denominated investments comprised approximately 0.2%0.1% and 0.6%0.1% of total investments at SeptemberJune 30, 20182019 and December 31, 2017,2018, respectively. Such positions were converted at the respective closing foreign exchange rates in effect at SeptemberJune 30, 20182019 and December 31, 20172018 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.

Derivatives

In order to mitigate certain currency exchange and interest rate risks, the Operating 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

3334





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)
 
SeptemberJune 30, 20182019

2. Summary of Significant Accounting Policies — (continued)

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. As of September 30, 2018 and December 31, 2017, $0.0 million and $0.8 million, respectively, of cash was held as collateral and was included in cash and cash equivalents in the Consolidated Statements of Assets and Liabilities.

During the ninesix months ended SeptemberJune 30, 2019, the Company did not enter into any derivative transactions nor hold any derivative positions.

During the six months ended June 30, 2018, the Company exited itsa cross currency basis swap with a notional amount of $7.2 million. Gains and losses from derivatives during the ninesix months ended SeptemberJune 30, 2018 were included in net realized and unrealized loss on investments in the Consolidated Statements of Operations as follows:

Instrument 
Realized
Gains
(Losses)
 
Unrealized
Gains
(Losses)
Cross currency basis swap $(726,950) $603,745

During the nine months ended September 30, 2017, the Company entered into a cross currency basis swap with a notional amount of $7.2 million. The cross currency basis swap is reported in the Consolidated Statements of Assets and Liabilities as unrealized depreciation on swaps.  Gains and losses from derivatives during the nine months ended September 30, 2017 were included in net realized and unrealized loss on investments in the Consolidated Statements of Operations as follows:

Instrument 
Realized
Gains
(Losses)
 
Unrealized
Gains
(Losses)
Cross currency basis swap $—
 $(470,202)

Valuations of derivatives are determined using observable market inputs other than quoted prices in active markets for identical assets and, accordingly, are 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. 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

34





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

2. Summary of Significant Accounting Policies — (continued)

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.

Income Taxes

The Company intends to comply with the applicable provisionsrequirements of the Internal Revenue Code of 1986, as amended, pertainingapplicable to regulated investment companies, and to make distributionsdistribute substantially all of its taxable income sufficient to relieve it from substantially allits shareholders. Therefore, no U.S. federal income taxes. Accordingly, notax provision for income taxes is required in the consolidated financial statements.required. The income or loss of the Operating Company,SVCP, TCPC Funding and the SBIC is reported in the respective members' or partners’ income tax returns, as applicable. In accordance with ASC Topic 740 - Income Taxes, the Company recognizes in its consolidated financial statements the effect of a tax position when it is determined that such position is more likely than not, based on the technical merits, to be sustained upon examination.

The tax returns of the Company, the Operating Company,SVCP, TCPC Funding 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.
Cost and unrealized appreciation and depreciation of investments (including derivatives) for U.S. federal income tax purposes at September 30, 2018 and December 31, 2017 were as follows:
 September 30, 2018 December 31, 2017
Unrealized appreciation$50,509,424
 $40,379,148
Unrealized depreciation(108,423,034) (73,606,938)
Net unrealized depreciation$(57,913,610) $(33,227,790)
    
Cost$1,618,026,495
 $1,547,156,748

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition. Under this new pronouncement, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 applies to all entities and, for public entities, is effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted this pronouncement on January 1, 2018. Substantially all revenue streams are excluded from the scope of the new standard and the adoption of this pronouncement did not have a material impact on the Company’s consolidated financial statements.

On January 5, 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The more significant changes to the current GAAP model resulting from ASU 2016-01 include 1) elimination of the requirement to disclose the method(s) and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost, 2) requiring public entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and 3) requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted this pronouncement on January 1, 2018. The adoption of this pronouncement did not have a material impact on the Company’s consolidated financial statements.

In October 2016, the U.S. Securities and Exchange Commission adopted new rules and amended existing rules (together, the “Final Rules”) intended to modernize the reporting and disclosure of information by registered investment companies

35





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)
 
SeptemberJune 30, 20182019

2. Summary of Significant Accounting Policies — (continued)

for a period of three years from the date they are filed. No such examinations are currently pending. Management has analyzed tax laws and business development companies. In part, the Final Rules amend Regulation S-Xregulations and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendmentstheir application to Regulation S-X was August 1, 2017, and the Company has implementedas of June 30, 2019, inclusive of the applicable requirements into this report, namely the standardized reportingopen tax return years, and does not believe that there are any uncertain tax positions that require recognition of derivativesa tax liability in the consolidated schedulefinancial statements.

The final tax characterization of investments, disclosure of investments that had valuations which included certain unobservable inputs that were significant todistributions is determined after the valuation as a wholefiscal year and disclosure of realized gains/(losses)is reported on controlled affiliated investments.
On November 17, 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230),which requires that the statement of cash flows explain the change during the periodForm 1099 and in the totalCompany’s annual report to shareholders. Distributions can be characterized as ordinary income, capital gains and/or return of cash, cash equivalents,capital. As of December 31, 2018, the Company had non-expiring capital loss carryforwards in the amount of $127,718,766 available to offset future realized capital gains.

As of June 30, 2019, gross unrealized appreciation and amounts generally describeddepreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective retrospectively for interim and annual periods beginning after December 15, 2017. The adoption of this pronouncement did not have a material impact on the Company’s consolidated financial statements.follows:
 June 30, 2019
Tax Cost of Investments$1,775,023,171
  
Unrealized appreciation$38,701,035
Unrealized depreciation(124,541,937)
Net unrealized depreciation$(85,840,902)

Recent Accounting Pronouncements

On March 30, 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which amends the amortization period for certain callable debt securities purchased at a premium, shortening the period to the earliest call date. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company does not expect the adoption of this pronouncement todid not have a material impact on the Company’s consolidated financial statements.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement. The updated guidance modifies the disclosure requirements on fair value measurements by (1) removing certain disclosure requirements including policies related to valuation processes and the timing of transfers between levels of the fair value hierarchy, (2) amending disclosure requirements related to measurement uncertainty from the use of significant unobservable inputs, and (3) adding certain new disclosure requirements including changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 is effective for fiscal years beginning after December 15, 2019, including interim periods therein, with early adoption permitted. The Company is currently evaluatingadopted this pronouncement in the effectfourth quarter of 2018. The adoption of this pronouncement did not have a material impact on itsthe Company’s consolidated financial statements and related disclosures.statements.

On August 17, 2018, the U.S. Securities and Exchange Commission issued a final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, that reduces or eliminates certain disclosure requirements under Regulation S-X, and expands others. Expanded disclosures include new requirements to disclose for interim periods (1) changes in stockholder’s equity and (2) the amount of dividend per share for each class of shares. The Company adopted the final rule is effective foras of December 31, 2018. The adoption of this rule did not have a material impact on the Company beginning January 1, 2018.  Company’s consolidated financial statements.


36





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

3. Management Fees, Incentive Compensation and Other Expenses

The
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% ofon 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 paidincurred to the extent the Company’s cumulative total performance of the Companyreturn (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 8% annual returnbasis since January 1, 2013, (the “Total Return Hurdle”). Beginning January 1, 2013, the incentive compensation equals 20% of net investment income and 20% of net realized gains (reduced by any net unrealized losses), subject to the Total Return Hurdle. The incentive compensation is payable quarterly in arrears and is calculated as the amount by which cumulative incentive compensation earned since January 1, 2013 exceeds cumulative incentive compensation paid since January 1, 2013. On January 29, 2018, the Operating Company amended and restated its limited partnershiparrears.

36





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

3. Management Fees, Incentive Compensation and Other Expenses — (continued)


agreement (the "LPA"), effective as of January 1, 2018, to convert the existing incentive compensation structure from a profit allocation and distribution to the General Partner to a fee payable to the Advisor pursuant to the investment management agreements. The amendment has no impact on the amount of the incentive compensation paid or services received. 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 SeptemberJune 30, 20182019 and December 31, 2017,2018, 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.


4. Leverage

Leverage is comprised of convertible senior unsecured notes due December 2019 issued by the Company (the “2019 Convertible Notes”), convertible senior unsecured notes due March 2022 issued by the Company (the “2022 Convertible Notes”), unsecured notes due August 2022 issued by the Company (the “2022 Notes”), amounts outstanding under a senior secured revolving, multi-currency credit facility issued by the Operating CompanySVCP (the “SVCP 2022 Facility”), amounts outstanding under a senior secured revolving credit facility issued by TCPC Funding (the “TCPC Funding Facility”) and debentures guaranteed by the SBA (the “SBA Debentures”). Prior to being replaced by the SVCP 2022 Facility on February 26, 2018, leverage included $116.0 million in available debt under a senior secured revolving credit facility issued by the Operating CompanySVCP (the “SVCP 2018 Facility”).


37





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

4. Leverage — (continued)


Total leverage outstanding and available at SeptemberJune 30, 20182019 was as follows:
Maturity Rate Carrying Value* Available 
Total
Capacity
Maturity Rate Carrying Value* Available Total
Capacity		 
SVCP 2022 Facility2022 L+2.25% $50,000,000
 $75,000,000
 $125,000,000
SVCP Facility2023 L+2.00% $136,000,000
 $84,000,000
 $220,000,000
† 
2019 Convertible Notes ($108 million par)2019 5.25% 107,376,637
 —
 107,376,637
2019 5.25% 107,757,138
 —
 107,757,138
 
2022 Convertible Notes ($140 million par)2022 4.625% 137,833,569
 —
 137,833,569
2022 4.625% 138,278,427
 —
 138,278,427
 
2022 Notes ($175 million par)2022 4.125% 174,495,919
 —
 174,495,919
2022 4.125% 174,587,137
 —
 174,587,137
 
TCPC Funding Facility2022 
L+2.00%†
 204,000,000
 96,000,000
 300,000,000
2023 L+2.00%
‡ 
239,000,000
 111,000,000
 350,000,000
 
SBA Debentures 2024−2028 
2.77%‡
 98,000,000
 52,000,000
 150,000,000
 2024−2028 2.77%
§ 
118,000,000
 32,000,000
 150,000,000
 
Total leverage 771,706,125
 $223,000,000
 $994,706,125
 913,622,702
 $227,000,000
 $1,140,622,702
 
Unamortized issuance costs (7,356,870)     (6,232,536)     
Debt, net of unamortized issuance costs $764,349,255
     $907,390,166
     
______________
*Except for the convertible notes and 2022 Notes, all carrying values are the same as the principal amounts outstanding.
†Increased to $270,000,000 effective August 6, 2019
‡Subject to certain funding requirements
‡§Weighted-average interest rate on pooled loans, excluding fees of 0.36% or 0.35%. As of June 30, 2019, $15.0 million and $5.0 million of the outstanding amount was not yet pooled, and bore interest at a temporary rate of 2.72% and 2.69%, respectively, plus fees of 0.35% through September 25, 2019, the date of the next SBA pooling.


37





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

4. Leverage — (continued)


Total leverage outstanding and available at December 31, 20172018 was as follows: 
Maturity Rate Carrying Value* Available 
Total
Capacity
Maturity Rate Carrying Value* Available 
Total
Capacity
SVCP 2018 Facility2018 
L+2.50%†
 $57,000,000
 $59,000,000
 $116,000,000
SVCP Facility2022 L+2.25%
† 
$82,000,000
 $88,000,000
 $170,000,000
2019 Convertible Notes ($108 million par)2019 5.25% 107,011,061
 —
 107,011,061
2019 5.25% 107,501,207
 —
 107,501,207
2022 Convertible Notes ($140 million par)2022 4.625% 137,405,870
 —
 137,405,870
2022 4.625% 137,980,185
 —
 137,980,185
2022 Notes ($175 million par)2022 4.125% 174,407,422
 —
 174,407,422
2022 4.125% 174,525,996
 —
 174,525,996
TCPC Funding Facility2021 
L+2.50%‡
 175,000,000
 175,000,000
 350,000,000
2022 L+2.00%
‡ 
212,000,000
 88,000,000
 300,000,000
SBA Debentures 2024−2028 
2.57%§
 83,000,000
 67,000,000
 150,000,000
 2024−2028 2.77%
§ 
98,000,000
 52,000,000
 150,000,000
Total leverage 733,824,353
 $301,000,000
 $1,034,824,353
 812,007,388
 $228,000,000
 $1,040,007,388
Unamortized issuance costs (8,624,072)     (6,805,196)    
Debt, net of unamortized issuance costs $725,200,281
     $805,202,192
    
______________
*Except for the convertible notes and 2022 Notes, all carrying values are the same as the principal amounts outstanding.
†Based on either LIBOR orAs of December 31, 2018, $3.0 million of the lender’s costoutstanding amount were short-term borrowings bearing interest at a rate of funds, subject to certain limitationsPrime plus 2.25%.
‡Or L+2.25% subjectSubject to certain funding requirements
§Weighted-average interest rate, on pooled loans, excluding fees of 0.36%. As of December 31, 2017, $8.0 million if the outstanding amount was not yet pooled, and bore interest at a temporary rate of 1.79% plus fees of or 0.35% through March 20, 2018, the date of the next SBA pooling.

The combined weighted-average interest rates on total leverage outstanding at SeptemberJune 30, 20182019 and December 31, 20172018 were 4.27%4.32% and 4.13%4.34%, respectively.


38





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

4. Leverage — (continued)


Total expenses related to debt include:included the following: 
Nine Months Ended September 30,Six Months Ended June 30, 
2018 20172019 2018 
Interest expense$25,998,374
 $20,022,020
$19,576,892
 $17,047,949
 
Amortization of deferred debt issuance costs2,956,637
*2,646,451
1,837,576
 2,029,881
*
Commitment fees862,612
 1,195,229
417,795
 668,217
 
Total$29,817,623
 $23,863,700
$21,832,263
 $19,746,047
 
______________
*    Includes approximately $0.3 million of amortized debt costs related to the early termination of the SVCP 2018 Facility
*Includes approximately $0.3 million of amortized debt costs related to the early termination of the SVCP 2018 Facility.
    
Outstanding leverage is carried at amortized cost in the Consolidated Statements of Assets and Liabilities. As of SeptemberJune 30, 2018,2019, the estimated fair values of the SVCP 2022 Facility, the TCPC Funding Facility and the SBA Debentures approximated their carrying values, and the 2019 Convertible Notes, the 2022 Convertible Notes and the 2022 Notes had estimated fair values of $109.5$109.1 million, $139.7$141.2 million and $171.2$177.0 million, respectively. As of December 31, 2017,2018, the estimated fair values of the SVCP 2018 Facility, the TCPC Funding Facility and the SBA Debentures approximated their carrying values, and the 2019 Convertible Notes, the 2022 Convertible Notes and the 2022 Notes had estimated fair values of $112.5$108.6 million, $143.9$137.5 million and $172.6$169.5 million, respectively. The estimated fair values of the SVCP 2022 Facility, the SVCP 2018 Facility, the TCPC Funding Facility 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 convertible notes and 2022 Notes were determined using market quotations. The estimated fair values of the SVCP 2022 Facility,

38





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

4. Leverage — (continued)


the SVCP 2018 Facility, the TCPC Funding Facility, the convertible notes, the 2022 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 that mature on December 15, 2019, unless previously converted or repurchased in accordance with their terms. The 2019 Convertible Notes are general unsecured obligations of the Company, and rank structurally junior to the SVCP 2022 Facility, TCPC Funding Facility and the SBA Debentures. The Company does not have the right to redeem the 2019 Convertible Notes prior to maturity. The 2019 Convertible Notes bear interest at an annual rate of 5.25%, payable semi-annually. In certain circumstances, the 2019 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 50.9100 shares of common stock per one thousand dollar principal amount, which is equivalent to an initial conversion price of approximately $19.64 per share of common stock, subject to customary anti-dilutional adjustments. The initial conversion price was approximately 12.5% above the $17.46 per share closing price of the Company’s common stock on June 11, 2014. At SeptemberJune 30, 2018,2019, the principal amount of the 2019 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 June 15, 2019, holders may convert their 2019 Convertible Notes only under certain circumstances set forth in the indenture governing the terms of the 2019 Convertible Notes. On or after June 15, 2019 until the close of business on the scheduled trading day immediately preceding December 15, 2019, holders may convert their 2019 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.

39





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

4. Leverage — (continued)



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 SVCP 2022 Facility and the TCPC Funding Facility. 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 SeptemberJune 30, 2018,2019, 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 may convert 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.


39





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

4. Leverage — (continued)


The 2019 Convertible Notes and 2022 Convertible Notes are accounted for in accordance with ASC Topic 470-20 –
Debt with Conversion and Other Options. Upon conversion of any of the 2019 Convertible Notes or 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 are 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 SeptemberJune 30, 20182019 and December 31, 2017,2018, the components of the carrying values of the 2019 Convertible Notes and 2022 Convertible Notes were as follows:

September 30, 2018 December 31, 2017June 30, 2019 December 31, 2018
2019 Convertible
Notes
 
2022 Convertible
Notes
 
2019 Convertible
Notes
 
2022 Convertible
Notes
2019 Convertible
Notes
 
2022 Convertible
Notes
 
2019 Convertible
Notes
 
2022 Convertible
Notes
Principal amount of debt$108,000,000
 $140,000,000
 $108,000,000
 $140,000,000
$108,000,000
 $140,000,000
 $108,000,000
 $140,000,000
Original issue discount, net of accretion(623,363) (2,166,431) (988,939) (2,594,130)(242,862) (1,721,573) (498,793) (2,019,815)
Carrying value of debt$107,376,637
 $137,833,569
 $107,011,061
 $137,405,870
$107,757,138
 $138,278,427
 $107,501,207
 $137,980,185

40





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

4. Leverage — (continued)



For the ninesix months ended SeptemberJune 30, 20182019 and 2017,2018, the components of interest expense for the convertible notes were as follows:
Nine Months Ended September 30,Six Months Ended June 30,
2018 20172019 2018
2019
Convertible
Notes
 
2022
Convertible
Notes
 
2019
Convertible
Notes
 
2022
Convertible
Notes
2019
Convertible
Notes
 
2022
Convertible
Notes
 
2019
Convertible
Notes
 
2022
Convertible
Notes
Stated interest expense$4,252,500
 $4,856,250
 $4,252,500
 $4,874,236
$2,835,000
 $3,237,500
 $2,835,000
 $3,237,500
Amortization of original issue discount365,575
 427,700
 345,427
 408,129
255,931
 298,242
 241,600
 283,525
Total interest expense$4,618,075
 $5,283,950
 $4,597,927
 $5,282,365
$3,090,931
 $3,535,742
 $3,076,600
 $3,521,025
 
The estimated effective interest rate of the debt component of the 2019 Convertible Notes, equal to the stated interest of 5.25% plus the accretion of the original issue discount, was approximately 5.75% for the ninesix months ended SeptemberJune 30, 20182019 and SeptemberJune 30, 2017.2018. 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 ninesix months ended SeptemberJune 30, 20182019 and SeptemberJune 30, 2017.2018.

Unsecured Notes

On August 4, 2017, the Company issued $125.0 million of unsecured notes that mature on August 11, 2022 (the "2022
Notes"). 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

40





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

4. Leverage — (continued)


are general unsecured obligations of the Company and rank structurally junior to the SVCP 2022 Facility, TCPC Funding Facility and the SBA Debentures. The 2022 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 2022 Notes, and any accrued and unpaid interest. The 2022 Notes were issued at a discount to the principal amount.

As of SeptemberJune 30, 2019 and December 31, 2018, the components of the carrying value of the 2022 Notes were as follows:
September 30, 2018
 December 31, 2017
June 30, 2019
 December 31, 2018
Principal amount of debt$175,000,000
 $175,000,000
$175,000,000
 $175,000,000
Original issue discount, net of accretion(504,081) (592,578)(412,863) (474,004)
Carrying value of debt$174,495,919
 $174,407,422
$174,587,137
 $174,525,996

For the ninesix months ended SeptemberJune 30, 20182019 and September 30, 2017,2018, the components of interest expense for the 2022 Notes were as follows:
Nine Months Ended September 30,Six Months Ended June 30,
2018 20172019 2018
Stated interest expense$5,414,063
 $716,146
$3,609,375
 $3,609,375
Amortization of original issue discount88,497
 9,456
61,141
 58,695
Total interest expense$5,502,560
 $725,602
$3,670,516
 $3,668,070





41





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

4. Leverage — (continued)



SVCP 2022 Facility

The SVCP 2022 Facility consists of a revolving, multi-currency credit facility which provides for amounts to be drawn up to $125.0$220.0 million, subject to certain collateral and other restrictions. The facility was amended on June 29, 2018May 6, 2019 to (1) increase its capacity from $100.0$170.0 million to $125.0 million. The SVCP 2022 Facility matures on$220.0 million, (2) reduce the interest rate by 0.25% to LIBOR plus 2.00%, and (3) extend the maturity date from February 28, 2022 to May 6, 2023, subject to extension by the lenders at the request of the Operating Company, andSVCP. The facility contains an accordion feature pursuant to which the credit line may increase up to an aggregate of $300.0 million, subject to consent from the applicable lenders and other customary conditions. Most of the cash and investments held directly by the Operating Company,SVCP, as well as the net assets of TCPC Funding and the SBIC, are included in the collateral for the facility.

Borrowings under the SVCP 2022 Facility generally bear interest at a rate of LIBOR plus 2.25%2.00%. In addition to amounts due on outstanding debt, the SVCP 2022 Facility accrues commitment fees of 0.50% per annum on the unused portion of the facility, or 2.25% per annum on the unused portion that is greater than 60% of the total facility. The SVCP 2022 Facility may be terminated, and any outstanding amounts thereunder may become due and payable, should the Operating CompanySVCP fail to satisfy certain financial or other covenants. As of SeptemberJune 30, 2018, the Operating Company2019, SVCP was in full compliance with such covenants.

SVCP 2018 Facility

Prior to being replaced by the SVCP 2022 Facility on February 26, 2018, the SVCP 2018 Facility consisted of a senior secured revolving credit facility which provided for amounts to be drawn up to $116.0 million, subject to certain collateral and other restrictions. The SVCP 2018 Facility was originally set to mature on July 31, 2018. Advances under the SVCP 2018 Facility bore interest at an annual rate of 2.50% plus either LIBOR or the lender’s cost of funds (subject to a cap of LIBOR plus 20 basis points). In addition to amounts due on outstanding debt, the SVCP 2018 Facility accrued commitment fees of 0.20% per annum on the unused portion of the facility, or 0.25% per annum when less than $46.4 million in borrowings were outstanding.


41





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

4. Leverage — (continued)


SBA Debentures

As of SeptemberJune 30, 2018,2019, 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 SeptemberJune 30, 2018, the Operating Company2019, SVCP had committed $75.0 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, 2018 were as follows:
Issuance Date Maturity Debenture
Amount		 Fixed
Interest Rate		 SBA
Annual Charge
Pooled loans:        
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%
October 20, 2017 March 1, 2028 8,000,000
 3.19% 0.35%
September 19, 2018 September 1, 2028 15,000,000
 3.55% 0.35%
    $98,000,000
 2.77%* 
_____________
*Weighted-average interest rate on pooled loans

SBA Debentures outstanding as of December 31, 2017 were as follows:
Issuance Date Maturity 
Debenture
Amount
 
Fixed
Interest Rate
 
SBA
Annual Charge
Pooled loans:        
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%
    75,000,000
 2.57%* 
Non-pooled loans:        
October 20, 2017 March 20, 2018 8,000,000
 1.79% 0.35%
    $83,000,000
    
______________
*Weighted-average interest rate on pooled loans



42





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)
 
SeptemberJune 30, 20182019

4. Leverage — (continued)


SBA Debentures outstanding as of June 30, 2019 were as follows:
Issuance Date Maturity Debenture
Amount		 Fixed
Interest Rate		 SBA
Annual Charge
Pooled loans:        
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%
October 20, 2017 March 1, 2028 8,000,000
 3.19% 0.35%
September 19, 2018 September 1, 2028 15,000,000
 3.55% 0.35%
    $98,000,000
 2.77%* 
Non-pooled loans:        
June 12, 2019 September 25, 2019 15,000,000
 2.72% 0.35%
June 14, 2019 September 25, 2019 5,000,000
 2.69% 0.35%
    $118,000,000
    
_____________
*Weighted-average interest rate on pooled loans

SBA Debentures outstanding as of December 31, 2018 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%
October 20, 2017 March 1, 2028 8,000,000
 3.19% 0.35%
September 19, 2018 September 1, 2028 15,000,000
 3.55% 0.35%
    $98,000,000
 2.77%* 
_____________
*Weighted-average interest rate

TCPC Funding Facility

The TCPC Funding Facility is a senior secured revolving credit facility which provides for amounts to be drawn up to $300.0$350.0 million, subject to certain collateral and other restrictions. On May 31, 2018,7, 2019, the facility was amended to (1) reduceexpand the interest rate to LIBOR plus 2.00% or 2.35%, subject to certain funding requirements, (2) reduce thetotal capacity from $350.0by $50.0 million to $300.0 million, and (3)$350.0 million. On June 3, 2019, the facility was amended to extend the maturity date to May 31, 2022, subject to extension by the lender at the request of TCPC Funding.2023. The facility contains an accordion feature which allows for expansion of the facility to up to $400.0

43





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

4. Leverage — (continued)


$400.0 million subject to consent from the lender and other customary conditions. The cash and investments of TCPC Funding are included in the collateral for the facility.

Borrowings under the TCPC Funding Facility bear 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 accrues 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 may be terminated, and any outstanding amounts thereunder may become due and payable, should TCPC Funding fail to satisfy certain financial or other covenants. As of SeptemberJune 30, 2018,2019, TCPC Funding was in full compliance with such covenants.
 
5. Commitments, Contingencies, Concentration of Credit Risk and Off-Balance Sheet Risk

The Operating Company,SVCP, TCPC Funding 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, the Operating Company,SVCP, TCPC Funding 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.

4344





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)
 
SeptemberJune 30, 20182019

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 SeptemberJune 30, 20182019 and December 31, 20172018 as follows:

 Unfunded Balances Unfunded Balances
Issuer Maturity September 30, 2018 December 31, 2017 Maturity June 30, 2019 December 31, 2018
Alera Group Intermediate Holdings, Inc. 12/30/2021 N/A
 $759,546
Alera Group Intermediate Holdings, Inc. 12/30/2022  N/A
 375,000
2-10 Holdco, Inc. 10/31/2024 $416,667
 $416,667
Applause App Quality, Inc. 9/20/2022 $1,509,820
 1,509,820
 9/20/2022 1,509,820
 1,509,820
Apptio, Inc. 1/10/2025 769,231
 N/A
Auto Trakk SPV, LLC 12/21/2021 6,996,308
 6,996,308
 12/21/2021 3,193,208
 4,732,558
Avanti Communications Jersey Limited 6/15/2024 413,584
 N/A
Bisnow, LLC 4/29/2021 1,200,000
 1,200,000
 4/29/2021 1,200,000
 1,200,000
Blue Star Sports Holdings, Inc. 6/15/2024 877,777
 N/A
 6/15/2024 833,333
 877,777
Caliber Home Loans, Inc. 6/30/2020 N/A
 2,888,889
CAREATC, Inc. 3/14/2024 607,288
 N/A
Certify, Inc. 2/28/2024 3,720,069
 N/A
Datto, Inc. 12/7/2022 2,207,152
 2,207,152
 12/7/2022 N/A
 1,870,622
Domo, Inc. 2/1/2021 N/A
 15,296,963
Dodge Data & Analystics, LLC 5/1/2020 959,933
 N/A
Donuts Inc. 9/17/2023 660,634
 N/A
 9/17/2023 660,634
 660,634
Dude Solutions Holdings, Inc. 6/14/2025 1,589,685
 N/A
Edmentum, Inc. 6/9/2020 5,131,312
 1,179,005
 6/9/2020 N/A
 4,103,102
Enerwise Global Technologies, Inc. 11/30/2017 N/A
 4,000,000
Foursquare Labs, Inc. 6/1/2020  N/A
 3,750,000
FinancialForce.Com 2/1/2024 7,000,000
 N/A
HighTower Holding, LLC 1/31/2026 6,169,355
  N/A
 1/31/2026 N/A
 6,169,355
Home Partners of America, Inc. 10/13/2022 2,142,857
 N/A
 10/13/2022 2,142,857
 2,142,857
IAS Investco, Inc. 1/24/2021 1,714,286
 7,542,857
 1/24/2021 N/A
 1,114,286
iCIMS, Inc. 9/12/2024 490,735
 N/A
 9/12/2024 490,735
 490,735
InMobi, Inc. 12/31/2019  N/A
 8,299,181
JAMF Holdings, Inc. 11/13/2022 1,214,052
 1,214,052
 11/13/2022 404,684
 1,214,052
Lithium Technologies, LLC 10/3/2022 1,528,136
 1,528,136
Marketo, Inc. 8/16/2021  N/A
 1,704,545
Khoros LLC (Lithium) 10/3/2022 1,983,364
 1,983,364
Patient Point Network Solutions, LLC 6/26/2022 176,190
 440,474
 6/26/2022 264,285
 440,475
Pegasus Business Intelligence, LP (Onyx Centersource) 12/20/2021 671,356
 671,356
 12/20/2021 671,356
 671,356
Pulse Secure, LLC 5/1/2022 1,342,516
 1,342,516
 5/1/2022 1,342,516
 1,342,516
RM OpCo, LLC (Real Mex) 3/30/2018 N/A
 1,298,304
Rhode Holdings, Inc. (Kaseya) 5/3/2025 2,929,344
 N/A
RSB-160, LLC (Lat20), LLC 7/20/2022 957,533
 N/A
 7/20/2022 4,435,914
 4,435,914
Snow Software AB 4/17/2024 4,360,548
 N/A
Space Midco, Inc. (Archibus) 12/5/2023 277,778
 277,778
Team Software, Inc. 9/17/2023 3,511,210
 N/A
 9/17/2023 2,106,726
 3,511,210
Telarix, Inc. 11/19/2023 357,143
 357,143
TPC Intermediate Holdings, LLC 5/15/2023 188,235
��N/A
 5/15/2023 788,529
 188,235
Tradeshift Holdings, Inc. 9/1/2020 5,352,908
 8,411,712
 9/1/2020 5,352,908
 5,352,908
Unanet, Inc. 5/31/2024 10,102,040
 N/A
VSS-Southern Holdings, LLC 11/3/2020 N/A
 856,164
 11/3/2026 1,027,397
 N/A
Videology Tech Technologies, LLC 1/10/2020 N/A
 10,673,794
Xactly Corporation 7/31/2022 1,405,501
 1,405,501
 7/31/2022 1,405,501
 1,405,501
Total Unfunded Balances $46,407,806
 $85,551,275
 $62,357,144
 $46,468,865


4445





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)
 
SeptemberJune 30, 20182019




6. Related Party Transactions

The Company, the Operating Company,SVCP, TCPC Funding, the SBIC, the Advisor the General Partner and their members and affiliates may be considered related parties. From time to time, the Operating CompanySVCP advances payments to third parties on behalf of the Company which are reimbursable through deductions from distributions to the Company. At SeptemberJune 30, 20182019 and December 31, 2017,2018, no such amounts were outstanding. From time to time, the Advisor advances payments to third parties on behalf of the Company and the Operating CompanySVCP and receives reimbursement from the Company. At SeptemberJune 30, 20182019 and December 31, 2017,2018, amounts reimbursable to the Advisor totaled $1.3$0.9 million and $0.8$1.2 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 ninesix months ended SeptemberJune 30, 20182019 and 2017,2018, expenses allocated pursuant to the Administration Agreement totaled $1.8$1.2 million and $1.7$1.2 million respectively.

7. Stockholders’ Equity and Dividends

The following table summarizes the total shares issued and proceeds received in connection with the Company’s dividend reinvestment plan for the ninesix months ended SeptemberJune 30, 2019 and 2018:

 Shares Issued Price Per Share Net Proceeds
Shares issued from dividend reinvestment plan563 $14.26
*$8,029
 2019 2018
Shares Issued393
 374
Average Price Per Share$14.20
 $14.29
Proceeds$5,581
 $5,343
______________
*Weighted-average price per share

The following table summarizes the total shares issued and proceeds received in public offerings of the Company’s common stock net of underwriting discounts and offering costs as well as shares issued in connection with the Company’s dividend reinvestment plan for the year ended December 31, 2017:
 Shares Issued Price Per Share Net Proceeds
Shares issued from dividend reinvestment plan643 $16.46
*$10,585
April 25, 2017 public offering5,750,000 16.84
 93,597,500
At-the-market offerings54,713 15.78
*863,398
______________
*Weighted-average price per share

The Company’s dividends are recorded on the ex-dividend date. The following table summarizes the Company’s dividends declared and paid for the ninesix months ended SeptemberJune 30, 2018:2019:
Date Declared Record Date Payment Date Type Amount Per Share Total Amount
February 27, 2018 March 16, 2018 March 30, 2018 Regular $0.36
 $21,184,004
May 9, 2018 June 15, 2018 June 29, 2018 Regular 0.36
 21,174,966
August 8, 2018 September 14, 2018 September 28, 2018 Regular 0.36
 21,170,272
        $1.08
 $63,529,242

45





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

7. Stockholders’ Equity and Dividends — (continued)
Date Declared Record Date Payment Date Type Amount Per Share Total Amount
February 28, 2019 March 15, 2019 March 29, 2019 Regular $0.36
 $21,155,619
May 8, 2019 June 14, 2019 June 28, 2019 Regular 0.36
 21,155,688
        $0.72
 $42,311,307

The following table summarizes the Company’s dividends declared and paid for the ninesix months ended SeptemberJune 30, 2017:2018:
Date Declared Record Date Payment Date Type Amount Per Share Total Amount
February 28, 2017 March 17, 2017 March 31, 2017 Regular $0.36
 $19,095,084
May 9, 2017 June 16, 2017 June 30, 2017 Regular 0.36
 21,165,137
August 3, 2017 September 15, 2017 September 29, 2017 Regular 0.36
 21,165,193
        $1.08
 $61,425,414
Date Declared Record Date Payment Date Type Amount Per Share Total Amount
February 27, 2018 March 16, 2018 March 30, 2018 Regular $0.36
 $21,184,004
May 9, 2018 June 15, 2018 June 29, 2018 Regular 0.36
 21,174,966
        $0.72
 $42,358,970

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.

46





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019

7. Stockholders’ Equity and Dividends — (continued)

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 NovemberMay 1, 2018,2019, to be in effect through the earlier of two trading days after the Company’s fourthsecond quarter 20182019 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 ninesix months ended SeptemberJune 30, 2018:2019:
 Shares Repurchased Price Per Share Total Cost
Company Repurchase Plan47,818 $14.45
* $691,181
 Shares Repurchased Price Per Share Total Cost
Company Repurchase Plan9,000 $13.96
* $125,679
______________
*Weighted-average price per share

There were no share repurchases duringThe following table summarizes the ninetotal shares repurchased and amounts paid by the Company under the Company Repurchase Plan, including broker fees, for the six months ended SeptemberJune 30, 2017.2018:
 Shares Repurchased Price Per Share Total Cost
Company Repurchase Plan34,616 $14.40
* $498,639
______________
*Weighted-average price per share


46





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
September 30, 2018

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 ninesix months ended SeptemberJune 30, 20182019 and 2017:2018: 
 Nine Months Ended September 30,
 2018 2017
Net increase in net assets applicable to common shareholders resulting from operations$46,497,803
 $54,281,036
Weighted average shares outstanding58,824,514
 56,390,954
Earnings per share$0.79
 $0.96

9. Subsequent Events

On November 1, 2018, 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 2018 earnings release or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions.

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 such 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 Small Business Credit Availability Act (the “Asset Coverage Ratio Election”), and, as a result, effective on November 7, 2019 (unless we receive earlier shareholder approval), our asset coverage requirement applicable to senior securities will be reduced from 200% to 150%. The Company also plans to submit the Asset Coverage Ratio Election to the shareholders of the Company for approval at a meeting to be held in 2019. Subject to and at the time of the effectiveness of the Asset Coverage Ratio Election and subject to required approvals, including shareholder approval, the Company will reduce (i) its management fee on total assets (excluding cash and cash equivalents) financed using leverage over 1.0x debt to equity from 1.5% to 1.0%, (ii) its incentive fees on net investment income and net realized gains (reduced by any net unrealized losses) from 20% to 17.5%, and (iii) its cumulative total return hurdle from 8% to 7%.

On November 8, 2018, the Company’s board of directors declared a fourth quarter regular dividend of $0.36 per share payable on December 31, 2018 to stockholders of record as of the close of business on December 17, 2018.
 Six Months Ended June 30,
 2019 2018
Net increase in net assets applicable to common shareholders resulting from operations$13,297,938
 $31,306,430
Weighted average shares outstanding58,766,618
 58,833,900
Earnings per share$0.23
 $0.53


47





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)
 
June 30, 2019




9. Subsequent Events

On August 6, 2019, 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 third quarter 2019 earnings release or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions.

On August 8, 2019, the Company’s board of directors declared a third quarter regular dividend of $0.36 per share payable on September 30, 20182019 to stockholders of record as of the close of business on September 16, 2019.

Effective August 6, 2019, the Company expanded the total capacity of its SVCP Facility by $50.0 million to $270.0 million.


48





BlackRock TCP Capital Corp.
Notes to Consolidated Financial Statements (Unaudited) (Continued)
June 30, 2019




10. Financial Highlights

Nine Months Ended September 30,Six Months Ended June 30,
2018 20172019 2018
Per Common Share      
Per share NAV at beginning of period$14.80
 $14.91
$14.13
 $14.80
      
Investment operations:      
Net investment income (net of incentive fees for periods after January 1, 2018)1.20
 1.48
Net realized and unrealized losses(0.41) (0.22)
Incentive allocation reserve and distributionsN/A
 (0.30)
Net investment income0.81
 0.78
Net realized and unrealized gain(0.58) (0.25)
Total from investment operations0.79
 0.96
0.23
 0.53
      
Issuance of common stock—
 0.13
Repurchase of common stock—
 —
—
 —
Distributions to common shareholders from:   
Net investment income(1.08) (1.08)
Distributions to common shareholders(0.72) (0.72)
Per share NAV at end of period$14.51
 $14.92
$13.64
 $14.61
      
Per share market price at end of period$14.23
 $16.49
$14.25
 $14.45
      
Total return based on market value (1), (2)
(0.2)% 4.0%14.8% (7.0)%
Total return based on net asset value (1), (3)
5.3 % 7.3%1.6% 3.6 %
      
Shares outstanding at end of period58,800,001
 58,792,364
58,766,000
 58,813,014

4849





BlackRock TCP Capital Corp.
 
Notes to Consolidated Financial Statements (Unaudited) (Continued)

 SeptemberJune 30, 20182019

10. Financial Highlights — (continued)

Nine Months Ended September 30,Six Months Ended June 30,
2018 20172019 2018
Ratios to average common equity: (4)
      
Net investment income (5)
11.4% 11.1%12.6% 11.8%
Expenses excluding incentive compensation8.4% 7.1%9.3% 8.2%
Expenses including incentive compensation (6)
10.4% 9.1%10.5% 9.5%
      
Ending common shareholder equity$853,013,535
 $877,396,967
$801,341,260
 $859,182,290
Portfolio turnover rate25.1% 31.1%16.2% 11.7%
Weighted-average leverage outstanding$751,842,574
 $599,740,024
$827,366,166
 $740,156,090
Weighted-average interest rate on leverage4.6% 4.5%4.8% 4.6%
Weighted-average number of common shares58,824,514
 56,390,954
58,766,618
 58,833,900
Average leverage per share$12.78
 $10.64
$14.08
 $12.58
   
______________
(1)Not annualized

(1)    Not annualized.
(2)Total return based on market value equals the change in ending market value per 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.



50





BlackRock TCP Capital Corp.

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

Six Months Ended June 30, 2019

Security Dividends or Interest (2) Fair Value at
December 31, 2018		 Net realized gain or loss Net increase or decrease in unrealized appreciation or depreciation Acquisitions (3) Dispositions (4) Fair Value at
June 30, 2019
AGY Holding Corp., Common Stock $—
 $—
 $—
 $—
 $—
 $—
 $—
AGY Holding Corp., Senior Secured 2nd Lien Notes, 11%, due 11/15/20 545,334
 9,777,740
 —
 (161,954) 537,775
 —
 10,153,561
AGY Holding Corp., Senior Secured Delayed Draw Term Loan, 12%, due 5/18/20 63,299
 1,049,147
 —
 —
 —
 —
 1,049,147
AGY Holding Corp., Senior Secured Term Loan, 12%, due 5/18/20 293,798
 4,869,577
 —
 —
 —
 —
 4,869,577
Edmentum Ultimate Holdings, LLC, Class A Common Units —
 —
 —
 —
 —
 —
 —
Edmentum Ultimate Holdings, LLC, Junior PIK Notes, 10%, due 6/9/20 901,987
 11,152,078
 —
 1,353,989
 888,019
 —
 13,394,086
Edmentum Ultimate Holdings, LLC, Senior PIK Notes, 8.5%, due 6/9/20 147,929
 3,375,453
 —
 —
 145,795
 —
 3,521,248
Edmentum Ultimate Holdings, LLC, Warrants to Purchase Class A Common Units —
 —
 —
 —
 —
 —
 —
Edmentum, Inc., Junior Revolving Facility, 5%, due 6/9/20 106,776
 1,153,076
 —
 —
 4,177,024
 (9,867) 5,320,233
Edmentum, Inc., Senior Secured 1st Lien Term Loan B, 8.5%, due 6/9/21 523,137
 6,187,478
 —
 244,346
 2,492,853
 —
 8,924,677
Edmentum, Inc., Senior Secured 2nd Lien Term Loan, 7% PIK, due 12/8/21 277,362
 7,719,069
 —
 —
 274,058
 —
 7,993,127
Edmentum, Inc., Senior Unsecured Promissory Note, 10%, due 9/30/19 82,344
 —
 —
 20,988
 3,623,080
 —
 3,644,068
Educationcity Limited (Edmentum), Senior Unsecured Promissory Note, 10%, due 9/30/19 32,938
 —
 —
 8,395
 1,449,232
 —
 1,457,627
EPMC HoldCo, LLC, Membership Units —
 26,254
 43,320
 (26,254) —
 (43,320) —
Green Biologics, Inc., Common Stock —
 3,670,777
 —
 (5,673,578) 2,006,277
 —
 3,476
Iracore International Holdings, Inc., Senior Secured 1st Lien Term Loan, LIBOR + 9%, 1% LIBOR Floor, due 4/13/21 110,097
 1,900,733
 —
 —
 —
 —
 1,900,733
Iracore Investments Holdings, Inc., Class A Common Stock —
 1,375,243
 —
 102,275
 —
 —
 1,477,518
KAGY Holding Company, Inc., Series A Preferred Stock —
 969,224
 —
 (969,224) —
 —
 —
NEG Holdings, LLC (CORE Entertainment, Inc.), Senior Secured 1st Lien Term Loan, LIBOR + 8% PIK, 1% LIBOR Floor, due 10/17/22 85,818
 1,574,099
 —
 —
 84,863
 —
 1,658,962
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Units —
 6,543,086
 —
 165,793
 —
 —
 6,708,879
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Warrants to Purchase Class A Units —
 364,299
 —
 8,260
 —
 —
 372,559
NEG Parent, LLC (CORE Entertainment, Inc.), Class B Warrants to Purchase Class A Units —
 367,914
 —
 8,341
 —
 —
 376,255
NEG Parent, LLC (CORE Entertainment, Inc.), Litigation Trust Units —
 1,118,110
 —
 (33,861) —
 —
 1,084,249
Total $3,170,819
 $63,193,357
 $43,320
 $(4,952,484) $15,678,976
 $(53,187) $73,909,982
______________
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)Annualized, except for incentive compensation

(5)Net of incentive compensation

(6)Includes incentive compensationDispositions include decreases in the cost basis from sales, paydowns, mortgage amortizations and all Company expensesaircraft depreciation.




49







51






BlackRock TCP Capital Corp.
Consolidated Schedule of Changes in Investments in Controlled Affiliates (1) (Unaudited)

Six Months Ended June 30, 2019

Security Dividends or Interest (2) Fair Value at
December 31, 2018		 Net realized gain or loss Net increase or decrease in unrealized appreciation or depreciation Acquisitions (3) Dispositions (4) Fair Value at
June 30, 2019
36th Street Capital Partners Holdings, LLC, Membership Units $872,602
 $18,931,734
 $—
 $2,804,939
 $346,250
 $—
 $22,082,923
36th Street Capital Partners Holdings, LLC, Senior Note, 12%, due 11/1/20 1,710,314
 27,839,419
 —
 —
 753,750
 —
 28,593,169
Anacomp, Inc., Class A Common Stock —
 1,418,746
 —
 (263,661) —
 —
 1,155,085
Conergy Asia & ME Pte. Ltd., 1st Lien Term Loan, 10%, due 5/26/20 87,961
 1,773,807
 —
 (276,715) —
 —
 1,497,092
Conergy Asia Holdings Limited, Class B Shares —
 —
 —
 —
 —
 —
 —
Conergy Asia Holdings Limited, Ordinary Shares —
 —
 —
 —
 —
 —
 —
Conventional Lending TCP Holdings, LLC, Membership Units   —
 —
 —
 1,415,656
 —
 1,415,656
Kawa Solar Holdings Limited, Bank Guarantee Credit Facility, 0%, due 5/26/20 —
 11,682,923
 —
 (816,391) —
 (7,577,094) 3,289,438
Kawa Solar Holdings Limited, Ordinary Shares —
 —
 —
 (578,646) —
 578,646
 —
Kawa Solar Holdings Limited, Revolving Credit Facility, 0%, due 5/26/20 —
 2,922,269
 —
 294,742
 —
 (578,646) 2,638,365
Kawa Solar Holdings Limited, Series B Preferred Shares —
 —
 —
 —
 —
 —
 —
United N659UA-767, LLC (Aircraft Trust Holding Company) 79,904
 2,826,708
 —
 33,139
 —
 (180,922) 2,678,925
United N661UA-767, LLC (Aircraft Trust Holding Company) 69,010
 2,896,083
 —
 (24,520) —
 (191,814) 2,679,749
Total $2,819,791
 $70,291,689
 $—
 $1,172,887
 $2,515,656
 $(7,949,830) $66,030,402
______________
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.


52





BlackRock TCP Capital Corp.
 
Consolidated Schedule of Changes in Investments in Non-Controlled Affiliates(1)(Unaudited)

Nine MonthsYear Ended September 30,December 31, 2018
Security Dividends or Interest (2) Fair Value at
December 31, 2017		 Net realized gain or loss Net increase or decrease in unrealized appreciation or depreciation Acquisitions (3) Dispositions (4) Fair Value at
September 30, 2018
36th Street Capital Partners Holdings, LLC, Membership Units $105,288
 $12,576,276
 $—
 $4,459,018
 $3,704,167
 $—
 $20,739,461
36th Street Capital Partners Holdings, LLC, Senior Note, 12%, due 11/1/20 2,682,792
 30,827,391
 —
 —
 —
 (2,392,973) 28,434,418
AGY Holding Corp., Common Stock —
 —
 —
 —
 —
 —
 —
AGY Holding Corp., Senior Secured 2nd Lien Notes, 11%, due 11/15/20 785,793
 9,268,000
 —
 —
 509,739
 —
 9,777,739
AGY Holding Corp., Senior Secured Delayed Draw Term Loan, 12%, due 5/18/20 95,472
 1,049,147
 —
 —
 —
 —
 1,049,147
AGY Holding Corp., Senior Secured Term Loan, 12%, due 5/18/20 443,131
 4,869,577
 —
 —
 —
 —
 4,869,577
Anacomp, Inc., Class A Common Stock —
 1,418,746
 —
 —
 —
 —
 1,418,746
Conergy Asia & ME Pte. Ltd., 1st Lien Term Loan, 10%, due 5/26/20 67,645
 666,667
 —
 —
 1,107,141
 —
 1,773,808
Conergy Asia Holdings Limited, Class B Shares —
 1,027,700
 —
 (1,027,600) —
 (100) —
Conergy Asia Holdings Limited, Ordinary Shares —
 193,847
 —
 (193,847) —
 —
 —
Edmentum Ultimate Holdings, LLC, Class A Common Units —
 —
 —
 —
 —
 —
 —
Edmentum Ultimate Holdings, LLC, Junior PIK Notes, 10%, due 6/9/20 1,244,083
 10,377,830
 —
 (728,426) 1,224,778
 —
 10,874,182
Edmentum Ultimate Holdings, LLC, Senior PIK Notes, 8.5%, due 6/9/20 207,104
 3,099,573
 —
 —
 204,117
 —
 3,303,690
Edmentum Ultimate Holdings, LLC, Warrants to Purchase Class A Common Units —
 —
 —
 78
 —
 (78) —
Edmentum, Inc., Junior Revolving Facility, 5%, due 6/9/20 125,363
 2,189,584
 —
 2
 2,694,993
 (4,776,819) 107,760
Edmentum, Inc., Senior Secured 1st Lien Term Loan B, 8.5%, due 6/9/21 55,022
 —
 —
 986,793
 5,155,352
 —
 6,142,144
Edmentum, Inc., Senior Secured 2nd Lien Term Loan, 7% PIK, due 12/8/21 584,965
 —
 —
 8
 7,583,403
 —
 7,583,410
EPMC HoldCo, LLC, Membership Units —
 210,035
 —
 26,254
 —
 —
 236,289
Globecomm Systems, Inc., Senior Secured 1st Lien Incremental Term Loan, LIBOR + 7.625%, 1.25% LIBOR Floor, due 12/11/21 10,751
 175,824
 —
 (32) 13,883
 —
 189,675
Globecomm Systems, Inc., Senior Secured 1st Tranche Term Loan, LIBOR + 5.5%, 1.25% LIBOR Floor, due 12/11/21 423,656
 7,200,000
 —
 —
 420,236
 —
 7,620,236
Globecomm Systems, Inc., Senior Secured 2nd Tranche Term Loan, LIBOR + 8%, 1.25% LIBOR Floor, due 12/11/21 189,220
 2,400,000
 —
 —
 187,800
 —
 2,587,800
Globecomm Systems, Inc., Senior Secured 3rd Tranche Term Loan, 12.5% PIK, due 12/11/21 122,913
 1,248,000
 —
 (341,196) 122,538
 —
 1,029,343
Globecomm Systems, Inc., Senior Secured 4th Tranche Term Loan, 12.5% PIK, due 12/11/21 222,190
 2,256,000
 —
 (2,477,509) 221,510
 —
 —
Globecomm Systems, Inc., Senior Secured Incremental 1st Tranche Term Loan, LIBOR + 5.5%, 1.25% LIBOR Floor, due 12/11/21 5,795
 —
 —
 —
 244,778
 —
 244,778
HCT Acquisition, LLC (Globecomm), Membership Units —
 531,575
 —
 (531,575) —
 —
 —
Iracore International Holdings, Inc., Senior Secured 1st Lien Term Loan, LIBOR + 9%, 1% LIBOR Floor, due 4/13/21 157,464
 1,900,733
 —
 —
 —
 —
 1,900,733
Iracore Investments Holdings, Inc., Class A Common Stock —
 3,458,749
 —
 (1,161,609) —
 —
 2,297,140
KAGY Holding Company, Inc., Series A Preferred Stock —
 11,034,519
 —
 (6,705,836) —
 (133) 4,328,550
Kawa Solar Holdings Limited, Bank Guarantee Credit Facility, LIBOR + 8% PIK, due 5/26/20 647,005
 16,233,431
 —
 —
 (290,793) (1,233,333) 14,709,304
Kawa Solar Holdings Limited, Ordinary Shares —
 —
 —
 —
 —
 —
 —
Kawa Solar Holdings Limited, Revolving Credit Facility, 0%, due 5/26/20 —
 7,048,850
 —
 (6,131,679) 1,066,667
 —
 1,983,838
Kawa Solar Holdings Limited, Series B Preferred Shares —
 —
 —
 —
 —
 —
 —
NEG Holdings, LLC (CORE Entertainment, Inc.), Senior Secured 1st Lien Term Loan, LIBOR + 8% PIK, 1% LIBOR Floor, due 10/17/22 77,404
 1,584,734
 —
 —
 77,327
 (129,524) 1,532,537
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Units —
 4,345,010
 —
 2,201,885
 —
 —
 6,546,895
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Warrants to Purchase Class A Units —
 111,875
 —
 251,188
 —
 —
 363,063
NEG Parent, LLC (CORE Entertainment, Inc.), Class B Warrants to Purchase Class A Units —
 112,985
 —
 253,680
 —
 —
 366,665
NEG Parent, LLC (CORE Entertainment, Inc.), Litigation Trust Units —
 1,201,138
 —
 (41,514) —
 —
 1,159,624
RM Holdco, LLC (Real Mex), Equity Participation —
 —
 —
 —
 —
 —
 —
RM Holdco, LLC (Real Mex), Membership Units 31,486
 —
 —
 1,316
 —
 —
 1,316
RM OpCo, LLC (Real Mex), Convertible 2nd Lien Term Loan Tranche B-1, 8.5%, due 3/30/18 77,143
 862,509
 —
 (955,150) 92,641
 —
 —
RM OpCo, LLC (Real Mex), Senior Convertible 2nd Lien Term Loan B, 8.5%, due 3/30/18 264,147
 7,250,973
 —
 (7,467,158) 317,220
 —
 101,035

50








BlackRock TCP Capital Corp.
Consolidated Schedule of Changes in Investments in Affiliates(1) (Unaudited) (Continued)

Nine Months Ended September 30, 2018
Security Dividends or Interest (2) Fair Value at
December 31, 2017		 Net realized gain or loss Net increase or decrease in unrealized appreciation or depreciation Acquisitions (3) Dispositions (4) Fair Value at
September 30, 2018		 Dividends or Interest (2) Fair Value at
December 31, 2017		 Net realized gain or loss Net increase or decrease in unrealized appreciation or depreciation Acquisitions (3) Dispositions (4) Fair Value at
December 31, 2018
AGY Holding Corp., Common Stock $—
 $—
 $—
 $—
 $—
 $—
 $—
AGY Holding Corp., Senior Secured 2nd Lien Notes, 11%, due 11/15/20 1,054,681
 9,268,000
 —
 —
 509,740
 —
 9,777,740
AGY Holding Corp., Senior Secured Delayed Draw Term Loan, 12%, due 5/18/20 127,646
 1,049,147
 —
 —
 —
 —
 1,049,147
AGY Holding Corp., Senior Secured Term Loan, 12%, due 5/18/20 592,465
 4,869,577
 —
 —
 —
 —
 4,869,577
Edmentum Ultimate Holdings, LLC, Class A Common Units —
 —
 —
 —
 —
 —
 —
Edmentum Ultimate Holdings, LLC, Junior PIK Notes, 10%, due 6/9/20 1,686,990
 10,377,830
 —
 (886,600) 1,660,848
 —
 11,152,078
Edmentum Ultimate Holdings, LLC, Senior PIK Notes, 8.5%, due 6/9/20 279,918
 3,099,573
 —
 —
 275,880
 —
 3,375,453
Edmentum Ultimate Holdings, LLC, Warrants to Purchase Class A Common Units —
 —
 —
 —
 —
 —
 —
Edmentum, Inc., Junior Revolving Facility, 5%, due 6/9/20 129,029
 2,189,584
 —
 2
 3,740,309
 (4,776,819) 1,153,076
Edmentum, Inc., Senior Secured 1st Lien Term Loan B, 8.5%, due 6/9/21 332,418
 —
 —
 910,888
 5,293,696
 (17,106) 6,187,478
Edmentum, Inc., Senior Secured 2nd Lien Term Loan, 7% PIK, due 12/8/21 722,259
 —
 —
 8
 7,719,061
 —
 7,719,069
EPMC HoldCo, LLC, Membership Units —
 210,035
 196,908
 (183,781) —
 (196,908) 26,254
Globecomm Systems, Inc., Senior Secured 1st Lien Incremental Term Loan, LIBOR + 7.625%, 1.25% LIBOR Floor, due 12/11/21 14,923
 175,824
 3,917
 (4,221) 14,155
 (189,675) —
Globecomm Systems, Inc., Senior Secured 1st Tranche Term Loan, LIBOR + 5.5%, 1.25% LIBOR Floor, due 12/11/21 547,010
 7,200,000
 —
 —
 420,234
 (7,620,234) —
Globecomm Systems, Inc., Senior Secured 2nd Tranche Term Loan, LIBOR + 8%, 1.25% LIBOR Floor, due 12/11/21 244,408
 2,400,000
 —
 —
 187,800
 (2,587,800) —
Globecomm Systems, Inc., Senior Secured 3rd Tranche Term Loan, 12.5% PIK, due 12/11/21 158,129
 1,248,000
 (1,117,442) —
 122,538
 (253,096) —
Globecomm Systems, Inc., Senior Secured 4th Tranche Term Loan, 12.5% PIK, due 12/11/21 205,845
 2,256,000
 (2,477,512) —
 221,512
 —
 —
Globecomm Systems, Inc., Senior Secured Incremental 1st Tranche Term Loan, LIBOR + 5.5%, 1.25% LIBOR Floor, due 12/11/21 9,757
 —
 —
 —
 244,778
 (244,778) —
Green Biologics, Inc., Common Stock —
 —
 —
 (14,851,816) 18,522,593
 —
 3,670,777
HCT Acquisition, LLC (Globecomm), Membership Units —
 531,575
 (531,575) —
 —
 —
 —
Iracore International Holdings, Inc., Senior Secured 1st Lien Term Loan, LIBOR + 9%, 1% LIBOR Floor, due 4/13/21 213,331
 1,900,733
 —
 —
 —
 —
 1,900,733
Iracore Investments Holdings, Inc., Class A Common Stock —
 3,458,749
 —
 (2,083,506) —
 —
 1,375,243
KAGY Holding Company, Inc., Series A Preferred Stock —
 11,034,519
 —
 (10,065,295) —
 —
 969,224
NEG Holdings, LLC (CORE Entertainment, Inc.), Senior Secured 1st Lien Term Loan, LIBOR + 8% PIK, 1% LIBOR Floor, due 10/17/22 118,111
 1,584,734
 —
 —
 118,889
 (129,524) 1,574,099
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Units —
 4,345,010
 —
 2,198,076
 —
 —
 6,543,086
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Warrants to Purchase Class A Units —
 111,875
 —
 252,424
 —
 —
 364,299
NEG Parent, LLC (CORE Entertainment, Inc.), Class B Warrants to Purchase Class A Units —
 112,985
 —
 254,929
 —
 —
 367,914
NEG Parent, LLC (CORE Entertainment, Inc.), Litigation Trust Units —
 1,201,138
 —
 (83,028) —
 —
 1,118,110
RM Holdco, LLC (Real Mex), Equity Participation —
 —
 —
 —
 —
 —
 —
RM Holdco, LLC (Real Mex), Membership Units 31,486
 —
 (2,010,777) 2,010,777
 —
 —
 —
RM OpCo, LLC (Real Mex), Convertible 2nd Lien Term Loan Tranche B-1, 8.5%, due 3/30/18 77,143
 862,509
 (2,210,269) 1,255,117
 92,643
 —
 —
RM OpCo, LLC (Real Mex), Senior Convertible 2nd Lien Term Loan B, 8.5%, due 3/30/18 264,147
 7,250,973
 (7,568,193) —
 317,220
 —
 —
RM OpCo, LLC (Real Mex), Senior Secured 1st Lien Term Loan Tranche A, 7%, due 3/30/18 $267,891
 $4,899,257
 $—
 $—
 $270,299
 $—
 $5,169,556
 297,194
 4,899,257
 (150,583) (283,386) 297,423
 (4,762,711) —
RM OpCo, LLC (Real Mex), Senior Secured 1st Out Term Loan Tranche A, 7%, due 3/30/18 90,368
 —
 —
 (28,072) 1,450,469
 —
 1,422,397
 101,757
 —
 7,551
 (38,950) 1,461,263
 (1,429,864) —
RM OpCo, LLC (Real Mex), Senior Secured 2nd Lien Term Loan Tranche B, 8.5%, due 3/30/18 —
 —
 —
 10
 —
 (10) —
 —
 —
 (10,398,622) 10,398,622
 —
 —
 —
RM OpCo, LLC (Real Mex), Senior Secured 2nd Lien Term Loan Tranche B-1, 8.5%, due 3/30/18 121,054
 1,353,457
 —
 (1,498,830) 145,373
 —
 —
 121,054
 1,353,457
 (3,452,951) 1,954,117
 145,377
 —
 —
RM OpCo, LLC (Real Mex), Senior Secured Super Priority Debtor-in-Possession Term Loan, 8.5%, due 12/15/18 9,396
 —
 —
 8,466
 712,034
 —
 720,500
 18,337
 —
 5,251
 —
 715,249
 (720,500) —
United N659UA-767, LLC (Aircraft Trust Holding Company) 119,856
 3,161,798
 —
 31,054
 —
 (271,381) 2,921,471
United N661UA-767, LLC (Aircraft Trust Holding Company) 103,514
 3,228,449
 —
 52,043
 —
 (287,723) 2,992,769
Total $7,348,038
 $82,991,084
 $(29,704,297) $(9,245,623) $42,081,208
 $(22,929,015) $63,193,357
______________
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% or moreto 25% of the issuers' voting securities.
(2)Also includes fee and lease income as applicableapplicable.
(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.

5153






BlackRock TCP Capital Corp.

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

Year Ended December 31, 20172018
Security 
Dividends or Interest (2)
 
Fair Value at
December 31, 2016
 Net realized gain or loss Net increase or decrease in unrealized appreciation or depreciation 
Acquisitions (3)
 
Dispositions (4)
 
Fair Value at
December 31, 2017
36th Street Capital Partners Holdings, LLC, Membership Units $237,398
 $6,818,897
 $—
 $3,630,283
 $3,739,948
 $(1,612,852) $12,576,276
36th Street Capital Partners Holdings, LLC, Senior Note, 12%, due 11/1/20 3,531,468
 29,203,304
 —
 —
 19,453,808
 (17,829,721) 30,827,391
AGY Holding Corp., Common Stock —
 —
 —
 —
 —
 —
 —
AGY Holding Corp., Senior Secured 2nd Lien Notes, 11%, due 11/15/18 1,019,480
 9,268,000
 —
 —
 —
 —
 9,268,000
AGY Holding Corp., Senior Secured Delayed Draw Term Loan, 12%, due 9/15/18 127,646
 1,049,147
 —
 —
 —
 —
 1,049,147
AGY Holding Corp., Senior Secured Term Loan, 12%, due 9/15/18 592,465
 4,869,710
 —
 (133) —
 —
 4,869,577
Anacomp, Inc., Class A Common Stock —
 1,205,306
 —
 213,440
 —
 —
 1,418,746
Conergy Asia & ME Pte. Ltd., 1st Lien Term Loan, 10%, due 6/30/2018 2,374
 —
 —
 —
 666,667
 —
 666,667
Conergy Asia Holdings Limited, Class B Shares —
 —
 —
 27,700
 1,000,000
   1,027,700
Conergy Asia Holdings Limited, Ordinary Shares —
 —
 —
 (7,639,487) 7,833,334
 —
 193,847
Edmentum Ultimate Holdings, LLC, Junior PIK Notes, 10%, due 6/9/20 1,523,633
 12,101,483
 —
 (3,223,635) 1,499,982
 —
 10,377,830
Edmentum Ultimate Holdings, LLC, Senior PIK Notes, 8.5%, due 6/9/20 257,039
 2,846,246
 —
 —
 253,327
 —
 3,099,573
Edmentum, Inc., Junior Revolving Facility, 5%, due 6/9/20 94,882
 —
 —
 —
 5,558,173
 (3,368,589) 2,189,584
Edmentum Ultimate Holdings, LLC, Class A Common Units —
 1,123,591
 —
 (1,123,591) —
 —
 —
EPMC HoldCo, LLC, Membership Units —
 210,035
 —
 —
 —
 —
 210,035
Essex Ocean II, LLC, Membership Units —
 159,045
 (103,398) (55,647) —
 —
 —
Globecomm Systems, Inc., Senior Secured 1st Lien Term Loan, LIBOR + 7.625%, 1.25% LIBOR Floor, due 12/11/18 1,229,572
 14,480,002
 (2,113,201) (144,800) 1,450,895
 (13,672,896) —
Globecomm Systems, Inc., Senior Secured 1st Lien Incremental Term Loan, LIBOR + 7.625%, 1.25% LIBOR Floor, due 12/11/18 5,322
 —
 (138) 4,220
 204,227
 (32,485) 175,824
Globecomm Systems, Inc., Senior Secured 1st Tranche Term Loan, LIBOR + 5.5%, 1.25% LIBOR Floor, due 12/11/21 28,250
 —
 —
 —
 7,200,000
 —
 7,200,000
Globecomm Systems, Inc., Senior Secured 2nd Tranche Term Loan, LIBOR + 8%, 1.25% LIBOR Floor, due 12/11/21 12,750
 —
 —
 —
 2,400,000
 —
 2,400,000
Globecomm Systems, Inc., Senior Secured 3rd Tranche Term Loan, 12.5% PIK, due 12/11/21 8,667
 —
 —
 —
 1,248,000
 —
 1,248,000
Globecomm Systems, Inc., Senior Secured 4th Tranche Term Loan, 12.5% PIK, due 12/11/21 15,667
 —
 —
 —
 2,256,000
 —
 2,256,000
HCT Acquisition, LLC (Globecomm), Membership Units —
 —
 —
 —
 531,575
 —
 531,575
Iracore International Holdings, Inc., Senior Secured 1st Lien Term Loan, LIBOR + 9%, 1% LIBOR Floor, due 4/13/21 141,935
 —
 —
 —
 1,900,733
 —
 1,900,733
Iracore Investments Holdings, Inc., Class A Common Stock —
 —
 —
 (718,961) 4,177,710
 —
 3,458,749
KAGY Holding Company, Inc., Series A Preferred Stock —
 4,607,246
 —
 6,427,273
 —
 —
 11,034,519
Kawa Solar Holdings Limited, Bank Guarantee Credit Facility, LIBOR + 8% PIK, due 7/2/18 2,019,092
 21,276,653
 —
 —
 676,937
 (5,720,159) 16,233,431
Kawa Solar Holdings Limited, Revolving Credit Facility, 0%, due 7/2/18 291,523
 4,000,000
 —
 —
 3,048,850
 —
 7,048,850
Kawa Solar Holdings Limited, Ordinary Shares —
 —
 —
 —
 —
 —
 —
Kawa Solar Holdings Limited, Series B Preferred Shares —
 1,395,350
 —
 (1,395,350) —
 —
 —
RM Holdco, LLC (Real Mex), Equity Participation —
 —
 —
 —
 —
 —
 —
RM Holdco, LLC (Real Mex), Membership Units 125,944
 —
 —
 —
 —
 —
 —
RM OpCo, LLC (Real Mex), Convertible 2nd Lien Term Loan Tranche B-1, 8.5%, due 3/30/18 175,531
 1,943,371
 —
 (1,255,117) 174,255
 —
 862,509
RM OpCo, LLC (Real Mex), Senior Convertible 2nd Lien Term Loan B, 8.5%, due 3/30/18 518,652
 4,251,368
 —
 —
 2,999,605
 —
 7,250,973
RM OpCo, LLC (Real Mex), Senior Secured 1st Lien Term Loan Tranche A, 7%, due 3/30/18 346,793
 4,871,284
 —
 —
 27,973
 —
 4,899,257
RM OpCo, LLC (Real Mex), Senior Secured 1st Out Term Loan Tranche A, 8.5%, due 3/30/18 —
 —
 —
 38,949
 —
 (38,949) —
RM OpCo, LLC (Real Mex), Senior Secured 2nd Lien Term Loan Tranche B, 8.5%, due 3/30/18 644,597
 3,154,770
 —
 (3,870,242) 715,472
 —
 —
RM OpCo, LLC (Real Mex), Senior Secured 2nd Lien Term Loan Tranche B-1, 8.5%, due 3/30/18 275,444
 3,049,555
 —
 (1,969,541) 273,443
 —
 1,353,457
United N659UA-767, LLC (Aircraft Trust Holding Company) 159,808
 3,191,938
 —
 331,701
 —
 (361,841) 3,161,798
United N661UA-767, LLC (Aircraft Trust Holding Company) 134,558
 3,266,101
 —
 345,978
 —
 (383,630) 3,228,449
Wasserstein Cosmos Co-Invest, L.P. (Globecomm), Limited Partnership Units —
 1,530,000
 (5,000,000) 3,470,000
 —
 —
 —
Security Dividends or Interest (2) Fair Value at
December 31, 2017		 Net realized gain or loss Net increase or decrease in unrealized appreciation or depreciation Acquisitions (3) Dispositions (4) Fair Value at
December 31, 2018
36th Street Capital Partners Holdings, LLC, Membership Units $750,715
 $12,576,276
 $—
 $(443,614) $7,049,072
 $(250,000) $18,931,734
36th Street Capital Partners Holdings, LLC, Senior Note, 12%, due 11/1/20 3,537,166
 30,827,391
 —
 —
 1,155,002
 (4,142,974) 27,839,419
Anacomp, Inc., Class A Common Stock —
 1,418,746
 —
 —
 —
 —
 1,418,746
Conergy Asia & ME Pte. Ltd., 1st Lien Term Loan, 10%, due 5/26/20 112,355
 666,667
 —
 —
 1,107,140
 —
 1,773,807
Conergy Asia Holdings Limited, Class B Shares —
 1,027,700
 —
 (1,027,700) —
 —
 —
Conergy Asia Holdings Limited, Ordinary Shares —
 193,847
 —
 (193,847) —
 —
 —
Kawa Solar Holdings Limited, Bank Guarantee Credit Facility, 0% PIK, due 5/26/20 645,470
 16,233,431
 —
 (2,473,048) (290,793) (1,786,667) 11,682,923
Kawa Solar Holdings Limited, Ordinary Shares —
 —
 —
 —
 —
 —
 —
Kawa Solar Holdings Limited, Revolving Credit Facility, 0%, due 5/26/20 —
 7,048,850
 —
 (5,746,581) 1,620,000
 —
 2,922,269
Kawa Solar Holdings Limited, Series B Preferred Shares —
 —
 —
 —
 —
 —
 —
United N659UA-767, LLC (Aircraft Trust Holding Company) 159,808
 3,161,798
 —
 26,751
 —
 (361,841) 2,826,708
United N661UA-767, LLC (Aircraft Trust Holding Company) 138,019
 3,228,449
 —
 51,265
 —
 (383,631) 2,896,083
Total $5,343,533
 $76,383,155
 $—
 $(9,806,774) $10,640,421
 $(6,925,113) $70,291,689
______________
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 5% or more than 25% of the issuers' voting securities.
(2)Also includes fee and lease income as applicableapplicable.
(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.

5254





BlackRock TCP Capital Corp.

Consolidated Schedule of Restricted Securities of Unaffiliated Issuers (Unaudited)

SeptemberJune 30, 20182019
InvestmentAcquisition Date
Actifio, Inc., Warrants to Purchase Series G Preferred Stock5/5/17
Adesto Technologies Corporation, Warrants to Purchase Common Stock5/8/18
Avanti Communications Group, PLC (144A), Senior New Money Initial Note, 9% PIK, due 10/1/221/26/17
Avanti Communications Group, PLC (144A), Senior Second-Priority PIK Toggle Note, 9%, due 10/1/221/26/17
CFG Investments Limited (Caribbean Financial Group), Subordinated Class B Notes, 9.42%, due 11/15/2611/7/17
Domo, Inc., Warrants to Purchase Common Stock12/5/17
Envigo RMS Holding Corp., Common Stock6/3/19
Fidelis Topco LP, Warrants to Purchase Series A Preferred Units7/20/18
Fidelis Topco LP, Warrants to Purchase Series B Preferred Units7/20/18
FinancialForce.com, Inc., Warrants to Purchase Series C Preferred Stock1/30/19
Findly Talent, LLC, Class A Membership Units1/1/14
Foursquare Labs, Inc., Warrants to Purchase Series E Preferred Stock5/4/17
GACP I, LP (Great American Capital), Membership Units10/1/15
GACP II, LP (Great American Capital), Membership Units1/12/18
GlassPoint Solar, Inc., Warrants to Purchase Series C-1 Preferred Stock2/7/17
GlassPoint Solar, Inc., Warrants to Purchase Series D Preferred Stock3/16/18
InMobi, Inc., Warrants to Purchase Common Stock8/22/17
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 Stock3/29/16
Quora, Inc., Warrants to Purchase Series D Preferred Stock4/12/19
Shop Holding, LLC (Connexity), Class A Units6/2/11
SnapLogic, Inc., Warrants to Purchase Series Preferred Stock3/20/18
Soraa, Inc., Warrants to Purchase Common Stock8/29/14
SoundCloud, Ltd., Warrants to Purchase Preferred Stock4/30/15
STG-Fairway Holdings, LLC (First Advantage), Class A Units12/30/10
Tradeshift, Inc., Warrants to Purchase Series D Preferred Stock3/9/17
Utilidata, Inc., Warrants to Purchase Preferred Stock12/22/15
V Telecom Investment S.C.A. (Vivacom), Common Shares11/9/12

55





BlackRock TCP Capital Corp.

Consolidated Schedule of Restricted Securities of Unaffiliated Issuers

December 31, 2018
Investment Acquisition Date
Actifio, Inc., Warrants to Purchase Series G Preferred Stock 5/5/17
Adesto Technologies Corporation, Warrants to Purchase Common Stock 5/8/18
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
CFG Investments Limited (Caribbean Financial Group), Subordinated Class B Notes, 9.42%, due 11/15/26 11/7/17
Domo, Inc., Warrants to Purchase Series D-2 PreferredCommon Stock 12/5/17
Epic Aero, Inc. (One Sky), Warrants to Purchase Common Stock12/4/13
Fidelis Topco LP, Warrants to Purchase Series A Preferred Units 7/20/18
Fidelis Topco LP, Warrants to Purchase Series B Preferred Units 7/20/18
Findly Talent, LLC, Class A Membership Units 1/1/14
Foursquare Labs, Inc., Warrants to Purchase Series E Preferred Stock 5/4/17
Fuse Media, LLC, Warrants to Purchase Common Stock 8/3/12
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
Green Biologics, Inc., Convertible Note, 10% PIK, due 6/30/197/12/17
Green Biologics, Inc., Preferred Shares5/14/18
Green Biologics, Inc., Warrants to Purchase Stock12/22/14
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
Lions Holdings, Inc., (Envigo)(BPA), Series A Warrants to Purchase Common Stock 7/14/17
Lions Holdings, Inc., (Envigo)(BPA), Series B Warrants to Purchase Common Stock 7/14/17
Nanosys, Inc., Warrants to Purchase CommonPreferred Stock 3/29/16
Shop Holding, LLC (Connexity), Class A Units 6/2/11
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
STG-Fairway Holdings, LLC (First Advantage), Class A Units 12/30/10
Tradeshift, Inc., Warrants to Purchase Series D Preferred Stock 3/9/17
Utilidata, Inc., Warrants to Purchase Preferred Stock 12/22/15
V Telecom Investment S.C.A. (Vivacom), Common Shares 11/9/12

53





BlackRock TCP Capital Corp.

Consolidated Schedule of Restricted Securities of Unaffiliated Issuers

December 31, 2017
InvestmentAcquisition Date
Actifio, Inc., Warrants to Purchase Series F Preferred Stock5/5/17
Avanti Communications Group, PLC (144A), Senior New Money Initial Note, 10%, due 10/1/211/26/17
Avanti Communications Group, PLC (144A), Senior Second-Priority PIK Toggle Note, 10%, due 10/1/211/26/17
Avanti Communications Group, PLC (144A), Senior Secured Third-Priority Note, 12%, due 10/1/231/26/17
CFG Investments Limited, Subordinated Class B Notes, 9.42%, due 11/15/2611/7/17
Domo, Inc., Warrants to Purchase Series D-2 Preferred Stock12/5/17
Epic Aero, Inc. (One Sky), Warrants to Purchase Common Stock12/4/13
Findly Talent, LLC, Membership Units1/1/14
Foursquare Labs, Inc., Warrants to Purchase Series E Preferred Stock5/4/17
Fuse Media, LLC, Warrants to Purchase Common Stock8/3/12
GACP I, LP, Membership Units10/1/15
GlassPoint Solar, Inc., Warrants to Purchase Series C-1 Preferred Stock2/7/17
Gogo Intermediate Holdings, LLC, Senior Secured Notes, 12.5%, due 7/1/226/9/16
Green Biologics, Inc., Convertible Note, 10% PIK, due 6/30/197/12/17
Green Biologics, Inc., Warrants to Purchase Stock12/22/14
InMobi, Inc., Warrants to Purchase Common Stock8/22/17
InMobi, Inc., Warrants to Purchase Series E Preferred Stock9/18/15
Lions Holdings, Inc., (BPA), Series A Warrants to Purchase Common Stock7/14/17
Lions Holdings, Inc., (BPA), Series B Warrants to Purchase Common Stock7/14/17
Nanosys, Inc., Warrants to Purchase Common Stock3/29/16
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Units10/17/16
NEG Parent, LLC (CORE Entertainment, Inc.), Class A Warrants to Purchase Class A Units10/17/16
NEG Parent, LLC (CORE Entertainment, Inc.), Class B Warrants to Purchase Class A Units10/17/16
Shop Holding, LLC (Connexity), Class A Units6/2/11
Soraa, Inc., Warrants to Purchase Common Stock8/29/14
SoundCloud, Ltd., Warrants to Purchase Preferred Stock4/30/15
STG-Fairway Holdings, LLC (First Advantage), Class A Units12/30/10
Tradeshift, Inc., Warrants to Purchase Series D Preferred Stock3/9/17
Utilidata, Inc., Warrants to Purchase Stock12/22/15
V Telecom Investment S.C.A. (Vivacom), Common Shares11/9/12

5456





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 “Holding Company”“Company,” “we,” “us” or “our”), formerly known as TCP Capital Corp. For simplicity, this report uses the terms “Company,” “we,” “us” and “our” to include the Holding Company and, where appropriate in the context, Special Value Continuation Partners LLC (the “Operating Company”), on a consolidated basis. 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

55





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.


57





Overview

The Holding Company is a Delaware corporation formed on April 2, 2012 and is an externally managed, closed-end, non-diversified management investment company. The Holding Company was formed through the conversion of a pre-existing closed-end investment company. The Holding Company elected to be treatedregulated 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. InvestmentCertain investment operations are conducted either inthrough the Company’s wholly-owned subsidiaries, Special Value Continuation Partners LLC, a Delaware limited liability company and wholly-owned subsidiary of the Holding Company (the “Operating Company”(“SVCP”), or in one of the Operating Company’s wholly-owned subsidiaries, TCPC Funding I, LLC (“TCPC Funding”) and TCPC SBIC, LP (the “SBIC”). The Operating CompanySVCP was organized as a limited partnership and had elected to be treatedregulated as a BDC under the 1940 Act through July 31, 2018. On August 1, 2018, the Operating CompanySVCP withdrew its election to be treatedregulated 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, (in such capacity prior to termination, the “General Partner”), and converted to a Delaware limited liability company. Series H of SVOF/MM, LLC (“SVOF/MM”) serves as the administrator (the “Administrator”) of the Holding Company. The managing member of SVOF/MM is Tennenbaum Capital Partners, LLC (the “Advisor”), which serves as the investment manager to the Company, the Operating Company, TCPC Funding 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. 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 Holding Company has elected to be treated as a regulated investment company (“RIC”) for U.S. federal income tax purposes. As a RIC, the Holding 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 and the SBIC have elected to be treated as partnerships for U.S. federal income tax purposes. The Operating CompanySVCP 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 $125.0$220.0 million in available debt under a revolving, multi-currency credit facility issued by the Operating CompanySVCP (the “SVCP 2022 Facility”), $300.0$350.0 million in available debt under a senior secured revolving credit facility issued by TCPC Funding (the “TCPC Funding Facility”), $108.0 million in convertible senior unsecured notes issued by the Holding Company maturing in 2019 (the “2019 Convertible Notes”), $140.0 million in convertible senior unsecured notes issued by the Holding Company maturing in 2022 (the “2022 Convertible Notes”), $175.0 million in senior unsecured notes issued by the Holding Company maturing in 2022 (the “2022 Notes”) and $150.0 million in committed leverage from the SBA (the “SBA Program” and, together with the SVCP 2022 Facility, the TCPC Funding Facility, the 2019 Convertible Notes, the 2022 Convertible Notes and the 2022 Notes, the “Leverage Program”). Prior to being replaced by the SVCP Facility on February 26, 2018, leverage included $116.0 million in available debt under a senior secured revolving credit facility issued by SVCP (the “SVCP 2018 Facility”).

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.


56





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

58





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 SeptemberJune 30, 2018, 85.1%2019, 87.3% 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 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 Series H of SVOF/MM, LLC (the “Administrator”)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 Holding Company’s common stockholders indirectly bear all of the costs and expenses of the Holding Company, the Operating 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;

57






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

administration fees payable under the administration agreement;


59





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.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 agreements provideagreement provides that the Advisor or its affiliates may be entitled to incentive compensation under certain circumstances. According to the terms of such agreements,agreement, no incentive compensation was incurred prior to January 1, 2013. Beginning January 1, 2013,Under the current investment management agreement, dated February 9, 2019, the incentive compensation equals the sum of (1) 20% of all of the ordinary income of TCPC 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 with each component beingthrough 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 a total return requirement of 8% of contributed common equity of TCPC annually. limitations under the 1940 Act and the Advisers Act.

Through December 31, 2017, the incentive compensation was payablean equity allocation to SVCP’s general partner under the General Partner by the Operating Company pursuant to the limited partnership agreement (the "LPA").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 underto the Advisor pursuant to the then-existing investment management agreements. The amendment hashad no impact on the amount of the incentive compensation paid or services received by the Operating Company. The determination of incentive compensation is subject to limitations under the 1940 Act and the Advisers Act.


5860






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.


5961





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.

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 SeptemberJune 30, 2018,2019, less than 0.1% of our investments were categorized as Level 1, 6.6%10.0% were categorized as Level 2, 93.2%89.8% 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, 2017, less than2018, 0.1% of our investments were categorized as Level 1, 8.4%4.2% were categorized as Level 2, 91.4%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.


62





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.

60





Revenue recognition

Interest and dividend income, including income paid in kind, is recorded on an accrual basis. 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.

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 SeptemberJune 30, 2018,2019, we invested approximately $163.7$232.2 million, comprised of new investments in seven11 new and five existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, 97.7% were in senior secured debt comprised of senior secured loans ($159.6 million, or 97.4% of total acquisitions) and senior secured notes ($0.4 million, or 0.3% of total acquisitions). The remaining $3.7 million (2.3% of total acquisitions) were comprised primarily of $3.7 million in equity interests in a portfolio of lease assets. Additionally, we received approximately $211.5 million in proceeds from sales or repayments of investments during the three months ended September 30, 2018.

During the three months ended September 30, 2017, we invested approximately $245.7 million, comprised of new investments in nine new and seven existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, 97.6% were in senior secured debt comprised of senior secured loans ($236.3 million, or 96.2% of total acquisitions) and senior secured notes ($3.4 million, or 1.4% of total acquisitions). The remaining $6.0 million (2.4% of total acquisitions) were comprised of equity investments including $2.8 million in equity interests in two portfolios of debt and lease assets and warrants received in connection with a debt investment. Additionally, we received approximately $158.1 million in proceeds from sales or repayments of investments during the three months ended September 30, 2017.

During the nine months ended September 30, 2018, we invested approximately $457.6 million, comprised of new investments in 19 new and 15 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, 95.2% were in senior secured debt comprised of senior secured loans ($396.4 million, or 86.6% of total acquisitions) and senior secured notes ($39.3 million, or 8.6% of total acquisitions). The remaining $21.9 million (4.8% of total acquisitions) were comprised primarily of $16.3 million in equity interests in a portfolio of debt assets, $3.7 million in equity interests in a portfolio of lease assets, as well as $1.9 million in one warrant position and one common stock position received in connection with debt investments. Additionally, we received approximately $395.7 million in proceeds from sales or repayments of investments during the nine months ended September 30, 2018.

61





During the nine months ended September 30, 2017, we invested approximately $652.4 million, comprised of new investments in 22 new and 177 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, 97.2% were in senior secured debt comprised of senior secured loans ($613.5224.7 million, or 94.0%96.8% of total acquisitions) and senior secured notes ($20.81.0 million, or 3.2%0.4% of total acquisitions). The remaining $18.1$6.5 million (2.8% of total acquisitions) werewas comprised primarily of $5.0 million (2.2% of total acquisitions) in unsecured notes and $1.5 million (0.6% of total acquisitions) primarily comprised of equity investments, including $13.9$1.4 million in equity interests in two portfoliosa portfolio of debt and lease assets and warrants$0.1 million in equity positions received in connection with five debt investments. Additionally, we received approximately $434.1$117.1 million in proceeds from sales or repayments of investments during the ninethree months ended SeptemberJune 30, 2017.2019.

At SeptemberDuring the three months ended June 30, 2018, we invested approximately $124.8 million, comprised of
new investments in 6 new and 4 existing portfolio companies, as well as draws made on existing commitments
and PIK received on prior investments. Of these investments, 88.9% were in senior secured debt comprised of senior
secured loans ($110.0 million, or 88.1% of total acquisitions) and senior secured notes ($0.9 million, or 0.8% of total
acquisitions). The remaining $13.9 million (11.1% of total acquisitions) were comprised primarily of $11.9 million
in equity interests in a portfolio of debt assets, as well as $1.9 million in one warrant position and one common stock
position received in connection with debt investments. Additionally, we received approximately $113.3 million in
proceeds from sales or repayments of investments during the three months ended June 30, 2018.

During the six months ended June 30, 2019, we invested approximately $382.3 million, comprised of new investments in 15 new and 14 existing portfolio companies, as well as draws made on existing commitments and PIK received on prior investments. Of these investments, 96.7% were in senior secured debt comprised of senior secured loans ($367.6 million, or 96.1% of total acquisitions) and senior secured notes ($2.2 million, or 0.6% of

63





total acquisitions). The remaining $12.5 million (3.3% of total acquisitions) was comprised primarily of $5.0 million (1.3% of total acquisitions) in unsecured notes and $7.5 million (2.0% of total acquisitions) primarily comprised of $4.5 million in equity interests in two portfolios of debt assets and $2.6 million in equity positions received in connection with debt investments. Additionally, we received approximately $263.5 million in proceeds from sales or repayments of investments during the six months ended June 30, 2019.
During the six months ended June 30, 2018, we invested approximately $293.9 million, comprised of new
investments in twelve new and ten existing portfolio companies, as well as draws made on existing commitments
and PIK received on prior investments. Of these investments, 93.8% were in senior secured debt comprised of senior
secured loans ($236.8 million, or 80.6% of total acquisitions) and senior secured notes ($38.9 million, or 13.3% of
total acquisitions). The remaining $18.2 million (6.2% of total acquisitions) were comprised primarily of $16.3
million in equity interests in a portfolio of debt assets, as well as $1.9 million in one warrant position and one
common stock position received in connection with debt investments. Additionally, we received approximately
$184.2 million in proceeds from sales or repayments of investments during the six months ended June 30, 2018.
At June 30, 2019, our investment portfolio of $1,560.1$1,689.2 million (at fair value) consisted of 95104 portfolio companies and was invested 94.6%95.3% in debt investments, primarily in senior secured debt. In aggregate, our investment portfolio was invested 86.6%87.6% in senior secured loans, 5.2%4.7% in senior secured notes, 2.8%3.0% in junior notes and 5.4%4.7% in equity investments. Our average portfolio company investment at fair value was approximately $16.4$16.2 million. Our largest portfolio company investment by value was approximately 3.4%3.2% of our portfolio and our five largest portfolio company investments by value comprised approximately 15.4%14.9% of our portfolio at SeptemberJune 30, 2018.2019.
At December 31, 2017,2018, our investment portfolio of $1,514.5$1,597.3 million (at fair value) consisted of 9695 portfolio companies and was invested 95.5%94.9% in debt investments, primarily in senior secured debt. In aggregate, our investment portfolio was invested 86.3%87.3% in senior secured loans, 6.5%4.9% in senior secured notes, 2.7% in junior notes and 4.5%5.1% in equity investments. Our average portfolio company investment at fair value was approximately $15.8$16.8 million. Our largest portfolio company investment by value was approximately 2.9%3.3% of our portfolio and our five largest portfolio company investments by value comprised approximately 13.3%15.5% of our portfolio at December 31, 2017.2018.

6264





The industry composition of our portfolio at fair value at SeptemberJune 30, 20182019 was as follows:
Industry 
Percent of Total
Investments
Diversified Software 18.125.1%
Data Processing and Hosting Services 12.79.5%
Financial Investment Activities 7.06.7%
Insurance5.5%
Lessors of Nonfinancial Licenses5.3%
Advertising, Public Relations and Marketing3.6%
Credit (Nondepository)3.3%
Business Support Services3.2%
Equipment Leasing3.0%
Air Transportation2.8%
Educational Support Services2.6%
Health Care2.3%
Management, Scientific, and Technical Consulting Services 4.02.2%
InsuranceOther Information Services 3.8%
Air Transportation3.4%
Credit (Nondepository)3.3%
Equipment Leasing3.2%
Advertising, Public Relations and Marketing2.92.2%
Computer Systems Design and Related Services 2.9%
Lessors of Nonfinancial Licenses2.8%
Credit Related Activities2.8%
Scientific Research and Development Services2.5%
Business Support Services2.12.0%
Building Equipment Contractors 2.1%
Amusement and Recreation2.1%
Health Care1.9%
Utility System ConstructionWholesalers 1.8%
Educational Support Services1.8%
Electronic Component Manufacturing1.7%
Other Information Services1.71.6%
Other Real Estate Activities 1.71.5%
Other Telecommunications 1.71.4%
Other ManufacturingRadio and Television Broadcasting1.4%
Ground Transportation 1.3%
Wired Telecommunications CarriersCredit Related Activities1.2%
Electronic Component Manufacturing1.2%
Retail 1.2%
Publishing 1.2%
Real Estate Leasing1.1%
WholesalersOther Manufacturing1.0%
Wired Telecommunications Carriers 1.0%
Other 6.24.9%
Total 100.0%

The weighted average effective yield of our debt portfolio was 11.7%11.0% at SeptemberJune 30, 20182019 and 11.0%11.4% at December 31, 2017.2018. The weighted average effective yield of our total portfolio was 11.3%10.5% at SeptemberJune 30, 20182019 and 10.5%10.9% at December 31, 2017.2018. At SeptemberJune 30, 2018, 91.8%2019, 91.2% 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 8.2%8.8% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 66.5%62.3% at SeptemberJune 30, 2018.2019. At December 31, 2017, 89.2%2018, 92.7% 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 10.8%7.3% bore interest at fixed rates. The percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 82.7%65.1% at December 31, 2017.2018.


63





Results of operations

Investment income

Investment income totaled $49.5$48.2 million and $43.3$48.4 million, respectively, for the three months ended SeptemberJune 30, 20182019 and 2017,2018, of which $49.3$47.6 million and $42.3$48.3 million were attributable to interest and fees on our debt

65





investments, $0.1$0.4 million and $0.0 million to dividend income, $0.1 million and $0.1 million to lease income and $0.0$0.1 million and $0.9$0.0 million to other income, respectively. Included in interest and fees on our debt investments were $3.4$3.2 million and $1.8$2.6 million of non-recurring income related to prepayments for the three months ended SeptemberJune 30, 20182019 and 2017,2018, respectively. The increasedecrease in investment income in the three months ended SeptemberJune 30, 20182019 compared to the three months ended SeptemberJune 30, 20172018 reflects an increase in interest income duethe impact of placing our loans to Fidelis Acquisitions, LLC except the larger portfolio sizeTerm Loan A on non-accrual and a reduced effective yield during the higher LIBOR as well asperiod, partially offset by the effect of net deployments and the increase in dividend and prepayment income during the three months ended September 30, 2018 compared to the three months ended SeptemberJune 30, 2017.2018.

Investment income totaled $142.1$95.7 million and $128.9$92.6 million, respectively, for the ninesix months ended SeptemberJune 30, 20182019 and 2017,2018, of which $141.5$94.6 million and $127.1$92.1 million were attributable to interest and fees on our debt investments, $0.1$0.8 million and $0.0$0.1 million to dividend income, $0.2 million and $0.2 million to lease income and $0.3$0.1 million and $1.6$0.3 million to other income, respectively. Included in interest and fees on our debt investments were $7.7$5.8 million and $13.5$4.3 million of non-recurring income related to prepayments for the ninesix months ended SeptemberJune 30, 20182019 and 2017,2018, respectively. The increase in investment income in the ninesix months ended SeptemberJune 30, 20182019 compared to the ninesix months ended SeptemberJune 30, 20172018 reflects an increase in interest income due to the larger portfolio size and the higher LIBOR during the ninesix months ended SeptemberJune 30, 20182019 as well as an increase in prepayment income and dividend income compared to the ninesix months ended SeptemberJune 30, 2017, partially offset by a decrease in prepayment income.2018.

Expenses

Total operating expenses for the three months ended SeptemberJune 30, 2019 and 2018 and 2017 were $25.0$24.4 million and $15.7$24.5 million, respectively, comprised of $10.1$11.2 million and $8.2$10.1 million in interest expense and related fees, $6.3$6.1 million and $5.6$6.2 million in base management and advisory fees, $6.1$4.8 million and $0.0$6.0 million in incentive fee expense, $0.6 million and $0.6 million in administrative expenses, $0.6$0.4 million and $0.3$0.6 million in legal and professional fees, and $1.3 million and $1.0 million in other expenses, respectively. The increasedecrease in expenses in the three months ended SeptemberJune 30, 20182019 compared to the three months ended SeptemberJune 30, 20172018 primarily reflects the inclusion oflower incentive fees withinpartially offset by the higher interest expense and other costs related to the increase in outstanding debt.

Total operating expenses duringfor the threesix months ended SeptemberJune 30, 2019 and 2018 insteadwere $48.6 million and $47.1 million, respectively, comprised of being reflected as an allocation$21.8 million and distribution to the General Partner during the three months ended September 30, 2017.$19.7 million in interest expense and related fees, $12.1 million and $11.9 million in base management and advisory fees, $10.2 million and $11.4 million in incentive fee expense, $1.2 million and $1.2 million in administrative expenses, $0.9 million and $1.0 million in legal and professional fees, and $2.4 million and $2.0 million in other expenses, respectively. The increase in expenses also includesin the six months ended June 30, 2019 compared to the six months ended June 30, 2018 primarily reflects the higher interest expense and other costs related to the increase in outstanding debt, partially offset by the higher average interest rate following the issuance of the 2022 Notes and the higher LIBOR during the period, as well as the increase in management fees due to the increase in assets in the three months ended September 30, 2018 compared to the three months ended September 30, 2017.

Total operating expenses for the nine months ended September 30, 2018 and 2017 were $72.1 million and $45.4 million, respectively, comprised of $29.8 million and $23.9 million in interest expense and related fees, $18.1 million and $15.6 million in base management and advisory fees, $17.5 million and $0.0 million inlower incentive fee expense, $1.8 million and $1.7 million in administrative expenses, $1.6 million and $1.1 million in legal and professional fees, and $3.3 million and $3.1 million in other expenses, respectively. The increase in expenses in the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017 primarily reflects the inclusion of incentive fees within operating expenses during the nine months ended September 30, 2018 instead of being reflected as an allocation and distribution to the General Partner during the nine months ended September 30, 2017. The increase in expenses also includes higher interest expense and other costs related to the increase in outstanding debt, the higher average interest rate following the issuance of the 2022 Notes and the higher LIBOR during the period, as well as the increase in management fees due to the increase in assets in the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017.fees.




64





Net investment income

Net investment income was $24.5$23.8 million and $27.6$24.0 million, respectively, for the three months ended SeptemberJune 30, 20182019 and 2017.2018. The decrease in net investment income in the three months ended SeptemberJune 30, 20182019 compared to the three months ended SeptemberJune 30, 20172018 primarily reflects the decrease in total investment income, partially offset by the decrease in expenses in the three months ended June 30, 2019.

Net investment income was $47.1 million and $45.5 million, respectively, for the six months ended June 30, 2019 and 2018. The increase in net investment income in the six months ended June 30, 2019 compared to the six months ended June 30, 2018 primarily reflects the increase in expenses (primarily due to the inclusion of incentive fees beginning January 1, 2018),total investment income, partially offset by the increase in investment incomeexpenses in the threesix months ended SeptemberJune 30, 2018.

Net investment income was $70.0 million and $83.5 million, respectively, for the nine months ended September 30, 2018 and 2017. The decrease in net investment income in the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017 primarily reflects the increase in expenses (primarily due to the inclusion of incentive fees beginning January 1, 2018), partially offset by the increase in investment income in the nine months ended September 30, 2018.2019.

Net realized and unrealized gain or loss

Net realized gain (loss) for the three months ended SeptemberJune 30, 2019 and 2018 and 2017 were $1.1was $(0.0) million and $(4.7)$0.7 million, respectively. Net realized gains during the three months ended September 30, 2018 were comprised primarily of a $0.8 million gain on the repayment of our loan to iGM, exclusive of additional prepayment income earned. Net realized losses during the three months ended September 30, 2017 were comprised primarily of $2.8 million on the expiration of our Rightside warrants and $1.9 million on the disposition of our Fuse Media notes, respectively. Both positions generated significant interest and other income. The Rightside warrants were allocated value at acquisition in connection with our funding of loans to Rightside at a significant discount to par. The Rightside loans were repaid in full during 2016.

66






Net realized gain (loss) for the ninesix months ended SeptemberJune 30, 2019 and 2018 and 2017 were $1.2was $(0.3) million and $(11.5)$0.1 million, respectively. Net realized gains during the nine months ended September 30, 2018 were comprised primarily of a $0.8 million gain on the repayment of our loan to iGM, exclusive of additional prepayment income earned. Net realized losses during the nine months ended September 30, 2017 were comprised primarily of a $10.1 million loss realization on the restructuring of our loan to Iracore, a $3.5 million loss realization on the restructuring of our loan to Avanti Communications Group, the realized losses on Rightside and Fuse Media and a $1.5 million loss on the disposition of our investment in Integra Telecom Holdings, partially offset by a $7.0 million gain on the sale of our equity in Blackline and $1.7 million gain on the sale of our equity in Soasta.
For the three months ended SeptemberJune 30, 2019 and 2018, and 2017, the changechanges in net unrealized appreciation/depreciation was $(10.4)were a decrease of $34.6 million and $(2.8)$20.5 million, respectively. The change in net unrealized appreciation/depreciation for the three months ended SeptemberJune 30, 20182019 was comprised primarily of a $3.6unrealized losses of $28.6 million gain on our investment in 36th Street Capital Partners, offset by markdowns of $4.2Fidelis and $3.2 million on our investment in Green Biologics, $4.0 million on our investment in Real Mex, and $2.6 million on earnings volatility in AGY Holdings.Biologics. The change in net unrealized appreciation/depreciation for the three months ended SeptemberJune 30, 20172018 was comprised primarily due to a $2.3of unrealized losses in four investments, including $7.3 million markdown on Edmentum, $2.0our investment in Kawa, $4.5 million markdown of Kawa, and $2.1 million markdown ofon our investment in Real Mex, partially offset by the reversal of previously recognized unrealized losses.$3.3 million on our investment in AGY Holdings, and $3.0 million on our investment in Green Biologics.
For the ninesix months ended SeptemberJune 30, 20182019 and 2017,2018, the change in net unrealized appreciation/depreciation was $(24.7)a decrease of $33.8 million and $(1.0)$14.3 million, respectively. The change in net unrealized appreciation/depreciation for the ninesix months ended SeptemberJune 30, 2019 was comprised primarily of unrealized losses in two investments, including $28.6 million on our investment in Fidelis and $5.7 million on our investment in Green Biologics. The change in net unrealized appreciation/depreciation for the six months ended June 30, 2018 was comprised primarily of unrealized losses in four investments, including $7.4 million on our investment in Kawa, $9.8$5.8 million on our investment in Real Mex, $6.9$4.1 million on our investment in AGY Holdings, and $2.7 million on our investment in Green Biologics, and $6.7 million on our investment in AGY Holdings, partially offset by unrealized gains of $4.7 million on our investment in 36th Street Capital Partners, $2.7 million on our investment in NEG Parent (CORE Entertainment) and $2.5$2.1 million on our investment in STG-Fairway Acquisitions. The change in net unrealized appreciation/depreciation for the nine months ended September 30, 2017 was comprised primarily of a $8.1 million markdown of Kawa as well as a $4.6 million markdown of Real Mex, partially offset by the reversal of previously recognized unrealized lossesAcquisitions, as well as various market gains resulting from generally tighter spreads during that period.spreads.

65





Income tax expense, including excise tax

The Holding 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 Holding 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. There was no excise tax expense recorded for the ninesix months ended SeptemberJune 30, 20182019 and 2017.2018.

Incentive compensation

Beginning January 1, 2018, incentive compensation is paid to the Advisor as a fee and included in operating expenses in the Statement of Operations rather than as an allocation and distribution to the General PartnerSVCP's general partner within the Statement of Operations. Incentive compensation included in operating expenses for the three months ended SeptemberJune 30, 2019 and 2018 and as an allocation and distribution to the General Partner for the three months ended September 30, 2017 was $6.1$4.8 million and $5.5$6.0 million, respectively. Incentive compensation for the three months ended SeptemberJune 30, 20182019 and 20172018 was paid due to our performance exceeding the total return threshold.

Incentive compensation included in operating expenses for the ninesix months ended SeptemberJune 30, 2019 and 2018 and as an allocation and distribution to the General Partner for the nine months ended September 30, 2017 was $17.5$10.2 million and $16.7$11.4 million, respectively. Incentive compensation for the ninesix months ended SeptemberJune 30, 20182019 and 20172018 was paid due to our performance exceeding the total return threshold.

Net increase in net assets applicable to common shareholders resulting from operations


67





The net increase (decrease) in net assets applicable to common shareholders resulting from operations was $15.2$(10.8) million and $14.6$4.1 million for the three months ended SeptemberJune 30, 20182019 and 2017,2018, respectively. The higherlower net increase in net assets applicable to common shareholders resulting from operations during the three months ended SeptemberJune 30, 20182019 was primarily due to the higher net investment incomeunrealized losses during the three months ended SeptemberJune 30, 20182019 compared to the three months ended SeptemberJune 30, 2017.2018.

The net increase in net assets applicable to common shareholders resulting from operations was $46.5$13.3 million and $54.3$31.3 million for the ninesix months ended SeptemberJune 30, 20182019 and 2017,2018, respectively. The lower net increase in net assets applicable to common shareholders resulting from operations during the ninesix months ended SeptemberJune 30, 20182019 was primarily due to the largerhigher net realized and unrealized losslosses during the ninesix months ended SeptemberJune 30, 20182019 compared to the ninesix months ended SeptemberJune 30, 2017.2018.

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 SVCFSpecial Value Continuation Fund, LLC (the predecessor entity) which were subsequently converted to common stock of the Holding 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.

The following table summarizes the total shares issued and proceeds received in connection with the Company’s dividend reinvestment plan for the ninesix months ended SeptemberJune 30, 2019 and 2018:

66





 Shares Issued Price Per Share
 Net Proceeds
Shares issued from dividend reinvestment plan563 $14.26
*$8,029
______________
*Weighted-average price per share.

The following table summarizes the total shares issued and proceeds received in offerings of the Company’s common stock net of underwriting discounts and offering costs as well as shares issued in connection with the Company’s dividend reinvestment plan for the year ended December 31, 2017:
 Shares Issued Price Per Share
 Net Proceeds
Shares issued from dividend reinvestment plan643
 $16.46
*$10,585
April 25, 2017 public offering5,750,000
 16.84
 93,597,500
At-the-market offerings54,713
 15.78
*863,398
______________
*Weighted-average price per share.

On October 3, 2014, we entered into an at-the-market equity offering program (the “ATM Program”) with Raymond James & Associates Inc. through which we may offer and sell, by means of at-the-market offerings from time to time, shares of our common stock having an aggregate offering price of up to $100,000,000.
 2019 2018
Shares Issued393
 374
Average Price Per Share$14.20
 $14.29
Proceeds$5,581
 $5,343

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 November 1, 2018,August 6, 2019, to be in effect through the earlier of two trading days after our fourththird quarter 20182019 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 ninesix months ended SeptemberJune 30, 2019 and 2018:

 Shares Repurchased Price Per Share Total Cost
Company Repurchase Plan47,818 $14.45
* $691,181
 2019 2018
Shares Repurchased9,000
 34,616
Price Per Share *$13.96
 $14.40
Total Cost$125,679
 $498,639
______________
*Weighted-average price per share

6768





Total leverage outstanding and available under the combined Leverage Program at SeptemberJune 30, 20182019 were as follows:
Maturity Rate Carrying Value* Available Total CapacityMaturity Rate Carrying Value* Available Total
Capacity		 
SVCP 2022 Facility2022 L+2.25% $50,000,000
 $75,000,000
 $125,000,000
SVCP Facility2023 L+2.00% $136,000,000
 $84,000,000
 $220,000,000
† 
2019 Convertible Notes ($108 million par)2019 5.25% 107,376,637
 —
 107,376,637
2019 5.25% 107,757,138
 —
 107,757,138
 
2022 Convertible Notes ($140 million par)2022 4.625% 137,833,569
 —
 137,833,569
2022 4.625% 138,278,427
 —
 138,278,427
 
2022 Notes ($175 million par)2022 4.125% 174,495,919
 —
 174,495,919
2022 4.125% 174,587,137
 —
 174,587,137
 
TCPC Funding Facility2022 
L+2.00%†
 204,000,000
 96,000,000
 300,000,000
2023 L+2.00%
‡ 
239,000,000
 111,000,000
 350,000,000
 
SBA Debentures 2024−2028 
2.77%‡
 98,000,000
 52,000,000
 150,000,000
 2024−2028 2.77%
§ 
118,000,000
 32,000,000
 150,000,000
 
Total leverage 771,706,125
 $223,000,000
 $994,706,125
 913,622,702
 $227,000,000
 $1,140,622,702
 
Unamortized issuance costs (7,356,870)
    (6,232,536)     
Debt, net of unamortized issuance costs $764,349,255
     �� $907,390,166
     
______________
*Except for the convertible notes and 2022 Notes, all carrying values are the same as the principal amounts outstanding.
†Increased to $270,000,000 effective August 6, 2019
‡Subject to certain funding requirements
‡§
Weighted-average interest rate on pooled loans, excluding fees of 0.36% or 0.35%
. As of June 30, 2019, $15.0 million and $5.0 million of the outstanding amount was not yet pooled, and bore interest at a temporary rate of 2.72% and 2.69%, respectively, plus fees of 0.35% through September 25, 2019, the date of the next SBA pooling.

In accordance withUnder Section 61(a) of the 1940 Act, with certain limited exceptions, we are currently allowedprior to borrow amounts such that our assetMarch 23, 2018, a BDC was generally not permitted to issue senior securities unless after giving effect thereto the BDC met a coverage as defined inratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities, which includes all borrowings of the 1940 Act, equalsBDC, of at least 200% after such borrowing. As of September 30, 2018, the Company’s asset coverage was 226%. 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. Effectiveness

Effective November 7, 2018, the Company’s board of the reduced asset coverage requirement to a BDC requires approval by either (1)directors, including a “required majority,” asmajority” (as such term is defined in Section 57(o) of the 1940 Act,Act) of such BDC’sour board of directors, with effectiveness one year afterapproved the dateapplication of such approval, or 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 majorityresult, effective on February 9, 2019, our asset coverage requirement applicable to senior securities was reduced from 200% to 150%. As of votes cast at a special or annual meeting of such BDC's stockholders at which a quorum is present, which is effectiveJune 30, 2019, the day after such stockholder approval. We are currently evaluating whether to seek such approvals.Company’s asset coverage ratio was 200%.

On July 13, 2015, we obtained exemptive relief from the SEC to permit us to exclude debt outstanding under the SBA Program from our 200% asset coverage test under the 1940 Act. The exemptive relief provides us with increased flexibility under the 200%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 provided byused in operating activities during the ninesix months ended SeptemberJune 30, 20182019 was $34.1$62.3 million. Our primary sourceuse of cash in operating activities during this period consisted of settlement of acquisitions of investments (net of dispositions) of $111.6 million, offset by net investment income (net of non-cash income and expenses) of approximately $86.3 million, offset by the settlement of dispositions of investments (net of acquisitions) of $52.2$49.3 million.


69





Net cash used inprovided by financing activities was $30.4$56.2 million during the ninesix months ended SeptemberJune 30, 2018,2019, consisting primarily of $63.5$101.0 million of net borrowings of debt, reduced by $42.3 million in regular dividends paid on common equity, and$2.4 payment of $3.2 million in debt issuance costs and $0.7$0.1 million in repurchases of common shares, offset by $37.0 million of net borrowings of debt.shares.

At SeptemberJune 30, 2018,2019, we had $90.3$21.9 million in cash and cash equivalents.

The SVCP 2022 Facility and the TCPC Funding Facility 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

68





negative covenants, including the maintenance of a minimum shareholders’ equity, the maintenance of a ratio of not less than 200%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 SVCP 2022 Facility and the TCPC Funding Facility, and may therefore impact our ability to borrow under the SVCP 2022 Facility and the TCPC Funding Facility. 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 SeptemberJune 30, 2018,2019, we were in compliance with all financial and operational covenants required by the Leverage Program.

Unfavorable economic conditions, 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 SVCP 2022 Facility, the 2019 Convertible Notes, SVCP Facility, the 2022 Convertible Notes, the 2022 Notes and the TCPC Funding Facility and the 2022 Notes mature in December 2019, February 2022, December 2019, March 2022, AugustMay 2022 and MayAugust 2022, 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 grosstotal 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

70





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.

69






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.

The following tables summarize dividends declared for the ninesix months ended SeptemberJune 30, 20182019 and 2017:2018:
Date Declared Record Date Payment Date Type 
Amount
Per Share
 Total Amount
February 27, 2018 March 16, 2018 March 30, 2018 Regular $0.36
 $21,184,004
May 9, 2018 June 15, 2018 June 29, 2018 Regular 0.36
 21,174,966
August 8, 2018 September 14, 2018 September 28, 2018 Regular 0.36
 21,170,272
        $1.08
 $63,529,242
Date Declared Record Date Payment Date Type 
Amount
Per Share
 Total Amount
February 28, 2019 March 15, 2019 March 29, 2019 Regular $0.36
 $21,155,619
May 8, 2019 June 14, 2019 June 28, 2019 Regular 0.36
 21,155,688
        $0.72
 $42,311,307

Date Declared Record Date Payment Date Type Amount Per Share Total Amount
February 28, 2017 March 17, 2017 March 31, 2017 Regular $0.36
 $19,095,084
May 9, 2017 June 16, 2017 June 30, 2017 Regular 0.36
 21,165,137
August 3, 2017 September 15, 2017 September 29, 2017 Regular 0.36
 21,165,193
        $1.08
 $61,425,414
Date Declared Record Date Payment Date Type Amount Per Share Total Amount
February 27, 2018 March 16, 2018 March 30, 2018 Regular $0.36
 $21,184,004
May 9, 2018 June 15, 2018 June 29, 2018 Regular 0.36
 21,174,966
        $0.72
 $42,358,970

The following table summarizes the total shares issued in connection with our dividend reinvestment plan for the ninesix months ended SeptemberJune 30, 20182019 and 2017:2018:
2018 20172019 2018
Shares Issued563
 464
393
 374
Average Price Per Share$14.26
 $16.93
$14.20
 $14.29
Proceeds$8,029
 $7,854
$5,581
 $5,343
 
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.

71





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

70





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 have adopted an “opt in” dividend reinvestment plan for our common stockholders. As a result, if we declare a dividend or other distribution payable in cash, each stockholder that has not “opted in” to our dividend reinvestment plan will receive such dividends in cash, rather than having their dividends automatically reinvested in additional shares of our common stock.

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

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 the Advisor, pursuant to which the Advisor has agreed to grant us a non-exclusive, royalty-free license to use the name “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

72





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,

71





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 OctoberJuly 1, 20182019 through NovemberAugust 7, 2018,2019, the Company has invested approximately $102.7$124.7 million primarily in fivefour senior secured loans with a combined effective yield of approximately 11.9%.9.7%, excluding origination income.

On November 1, 2018,August 6, 2019, 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 fourththird quarter 20182019 earnings release or such time as the approved $50.0 million repurchase amount has been fully utilized, subject to certain conditions.
        
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 such 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 Small Business Credit Availability Act (the “Asset Coverage Ratio Election”), and, as a result, effective on November 7,On August 8, 2019, (unless we receive earlier shareholder approval), our asset coverage requirement applicable to senior securities will be reduced from 200% to 150%. The Company also plans to submit the Asset Coverage Ratio Election to the shareholders of the Company for approval at a meeting to be held in 2019. Subject to and at the time of the effectiveness of the Asset Coverage Ratio Election and subject to required approvals, including shareholder approval, the Company will reduce (i) its management fee on total assets (excluding cash and cash equivalents) financed using leverage over 1.0x debt to equity from 1.5% to 1.0%, (ii) its incentive fees on net investment income and net realized gains (reduced by any net unrealized losses) from 20% to 17.5%, and (iii) its cumulative total return hurdle from 8% to 7%. The Company intends to continue to operate in a manner that will maintain its investment grade rating.

On November 8, 2018, the Company’s board of directors declared a fourththird quarter regular dividend of $0.36 per share payable on December 31, 2018September 30, 2019 to stockholders of record as of the close of business on December 17, 2018.September 16, 2019.


72Effective August 6, 2019, the Company expanded the total capacity of its SVCP Facility by $50.0 million to $270.0 million.





Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. At SeptemberJune 30, 2018, 91.8%2019, 91.2% 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 SeptemberJune 30, 2018,2019, the percentage of floating rate debt investments in our portfolio that were subject to an interest rate floor was 66.5%62.3%. 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 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 SeptemberJune 30, 20182019 balance sheet, 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:

73





Basis Point Change Interest income Interest Expense Net Investment Income Interest income Interest Expense Net Investment Income
Up 300 basis points $42,196,199
 $(10,560,000) $31,636,199
 $44,672,370
 $(11,250,000) $33,422,370
Up 200 basis points 28,130,799
 (7,040,000) 21,090,799
 29,781,580
 (7,500,000) 22,281,580
Up 100 basis points 14,065,400
 (3,520,000) 10,545,400
 14,890,790
 (3,750,000) 11,140,790
Down 100 basis points (13,916,735) 3,520,000
 (10,396,735) (14,611,625) 3,750,000
 (10,861,625)
Down 200 basis points (22,543,607) 7,040,000
 (15,503,607) (23,613,558) 7,500,000
 (16,113,558)
Down 300 basis points (24,281,489) 8,269,888
 (16,011,601) (25,638,535) 8,699,550
 (16,938,985)


7374





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.


7475





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 SeptemberJune 30, 2018,2019, we are currently not a party to any pending material legal proceedings.

Item 1A.  Risk Factors

In addition to the other information set forth in this report, you should carefully considerThere have been no material changes from the risk factors discussed below and the risk factors described in Part I, “Item 1A. Risk Factors”previously disclosed in our Annual Reportmost recent annual report on Form 10-K, foras filed with the fiscal year ended December 31, 2017Securities and those set forth under the caption “Risk Factors” in our reviewable post-effective amendment to our Registration StatementExchange Commission on Form N-2, filed on May 23, 2018 (the “POS 8C”), which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, in the POS 8C and discussed below are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.

Effective on November 7, 2019 (unless we receive earlier stockholder approval), our asset coverage requirement will reduce from 200% to 150%, which may increase the risk of investing with us.

Effective November 7, 2018, our 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 Small Business Credit Availability Act. As a result, effective on November 7, 2019 (unless we receive earlier stockholder approval), our asset coverage requirement applicable to senior securities will be reduced from 200% to 150%, and the risks associated with an investment in us may increase.

Changes to United States tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us.

There has been ongoing discussion and commentary regarding potential significant changes to United States trade policies, treaties and tariffs. The current administration, along with Congress, has created significant uncertainty about the future relationship between the United States and other countries with respect to the trade policies, treaties and tariffs. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States. Any of these factors could depress economic activity and restrict our portfolio companies’ access to suppliers or customers and have a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact us.February 28, 2019.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.
Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds.

None.None

Item 3.     Defaults Upon Senior Securities.

Item 3.Defaults Upon Senior Securities.
None.

Item 4:         Mine Safety Disclosures.

None.

75






Item 5:    
Item 5.Other Information.
None

None.

76





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)
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






7776





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.

BLACKROCKBlackRock TCP CAPITAL CORP.

Capital Corp.
Date: NovemberAugust 8, 20182019  
 By:/s/ Howard M. Levkowitz
 Name:Howard M. Levkowitz
 Title:Chief Executive Officer
Date: NovemberAugust 8, 20182019  
 By:/s/ Paul L. Davis
 Name:Paul L. Davis
 Title:Chief Financial Officer





78
77