BKCC - Earnings call transcript Q2 2021 | BlackRock Capital Investment Corp

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Operator

Good morning. My name is Lauren, and I will be your conference facilitator today for BlackRock Capital Investment Corporation Second Quarter 2021 Earnings Call. Hosting the call will be; James Keenan, Chairman and Interim Chief Executive Officer; Nik Singhal, President of the company; Abby Miller, Chief Financial Officer and Treasurer; Laurence D. Paredes, General Counsel and Corporate Secretary of the company; Marshall Merriman, Head of Portfolio Management and; Jason Mehring, Managing Director and Member of the company's Investment Committee. Lines have been placed on mute. their session. will complete for the speakers question-and-answer a the update, open they line After Thank Instructions] [Operator you. Mr. may you Paredes, begin the conference call.

Laurence D. Paredes

welcome BlackRock or and conference morning to quarter second Good XXXX call of Capital BCIC. Corporation Investment the earnings

Before and point expects, made words that be attention should, to intends, by would of out actual and documents, believes, corresponding forward-looking our use contain we from conference as can We subject certain the your statements. these differ call these BCIC's will, uncertainties. to of and remarks risks begin this to I such like today, during expressions. identified within comments forward-looking statements statements that similar results may may anticipates, the call Many fact

the the differ some forward-looking undertake which does with As BCIC to SEC these reports, factors and any may to results you no of know, materially BCIC's from assumes not update cause statements. lists has to, which BCIC duty statements. filed

Investors' Investor information XXXX presentation. I Presentation to be would accessed link Jim. our call highlight the contained by and page. in been over respect to to Accordingly, an Please Additionally, some August representation that website with turn BCIC warranty The the in of presented verified. call. presentation certain we Jim this have section going or Shortly note, clicking may now and website the complements makes independently the investor presentation third-party the information derived sources such has of been have the to can like our discussed no at, not to and will posted Presentations' from information. www.blackrockbkcc.com

James Keenan

in Miller will for provide discussion results Singhal Nik our of priorities. status more quarter Abby financial to second and level thanks of a joining detail. on towards activity an reflected and our update give I'll then second follow earnings goals Thank you, strategic with will quarter Larry. Good our portfolio and you which progress our and all our a update continued high call. performance, of morning you

of We produced a A will a portion the The portfolio second with mark. from We by growth, largely NAV of generating was legacy quarter, subsequent higher SVP-Singer resulted at then of consistent equity, monetized valuation level solid was and investment This the NII open increased the was which quarter in increase prior position. second in proceeds $XX momentum share call per large in X.X% strong questions. non-core million. the this driven to approximately cash a quarter for QX investment NAV. the increased

before, to for key highlighted we non-core investments. has capital priority have strategic BCIC of been legacy a other As rotate and out junior

this, the Of we than recent divestiture monetization exits, less our pleased basis. portfolio the the on X% non-core to largely a X% behind less With is of and consists of portfolio pro goal is of than us. are equity, non-income-producing investments. forma portfolio of SVP-Singer now non-core total that the SVP report Following other

the continue stable, We priorities quarter. nearly are $XX using focused resources for to to Our in portfolio build and strength. expertise near-term million long-term our deployed the on

portfolio lien the of companies, companies in a dollars have XX progress on opportunities to term income-generating, that of to first We at XX of This power and greater of diversified in steady risk secured our represents portfolio are XX% and close diversity. the the compelling identify continue investment returns. end with loans. compares total first the than quarter XX the more ongoing We senior now at adjusted new BlackRock during draw pursuit XXXX. loans remain deployed a portfolio to new Of with upon an to building platform lien committed of We emphasis positions. the quarter, solid first

increase the can Net on to to As over quarter selectively issuer share quarters. both the million deployment believe a and quarter-over-quarter. during we platform, increase to diversity helped portfolio in the underwriting lien of loans NII in coming continue X.XX $XX leverage that $X.XX times origination per to first and increase capitalize we percentage the and robust portfolio of the the BlackRock's continue and deploy we enabled capital

We continuing redeployment disciplined methodically to a manner. capital of expect in increase by leverage to

activities continues detail. coming shareholders. to As NII, to I'll dividend the call over portfolio turn our growth quarters, to grow for accretive Nik such to we expect discuss be now our increased leading the to in in portfolio further to Singhal coverage

Nik Singhal

mentioned, non-core and Jim solid make core to continued growing we assets progress monetizing As in portfolio. the investment

on in $XX exiting of received non-core and proceeds of of this and million quarter, positions, cash to During substantial junior the part the other were leading completion subsequent second efforts our book.

further variety quarter, second first were of the deployments a being portfolio million increase XX portfolio which with Gross with strong industries, lien our first in and in to had lower book. percentage the issuer. majority vast we diversified investments, new overall and industry by across lien strategy deployments risk portfolio consistent the quarter existing our $XX the both companies, in and X the across During

platform third-party develop A revolver first to plus loan and lien forma draw a release. XX% X% a and the some found a the up first of lien fair skills. XX% can target $X.X QX investments happened in plus LIBOR pressure to loan of the end details LIBOR Keep be this at value businesses of solutions our committed term helps in of to that delayed first technology of committed investment. But in BlackRock following; platform. million. and BCIC $XX.X net logistics to biggest and basis, by SVP exit, medium-sized portfolio million the BCIC fleet the This a helped critical loan small lien in management leverage our from lender committed include transportation the the on is in Razor consolidator our years. and in As each three With to development $XX.X sell new non-core this Truckin, Group, A and in boosted BCIC X.XX% through to deployment refinancing brands realized to term sole X% which investment. be already percentage NII. result, loan a several our was XXXX. more first warrants and also term learning Amazon's and million of easing, earnings the term The investments safety to us the lien that prominent quarter provider Pluralsight, industry. plus a exits progress pro investment the towards the individuals LIBOR

solid. remained set the for and added investments new we've second third opportunity first one Our new X to-date, quarter investment. lien lien In

In addition investments. several to follow-on

be of the and we both variety capital create expertise quickly to allows competitive, origination able of non-sponsored remain large opportunities broad We're funnel deep multi-sector selective the our the a provide channels, complete and attractive sponsored markets on scope industries. the move solutions us a opportunities seeing of base and are This to transactions. due While to across borrowers. to to

terms. on or BlackRock concentration. We growth. where creating funds larger co-lead they're enabling with the less we businesses And cyclical Credit Private deal us the strong continue emphasize continue and to co-investment investing focus company A on coinvest negotiations from order to on without transactions excessive lead experiencing to portfolio transactions in to we in other platform, the secular SEC allows participate

further the core new results Miller well, to by in portfolio over discuss evidenced loans has to our with perform quarter. percentage for as first call now continued no to investments XXXX. Our the of Abby an turn financial non-accrual lien increasing I'll

Abby Miller

investment from distribution quarter. incurred, fees excluding from million were I that, XX.X% net incur higher review a compared $X.X the investment financial financial increasing million or decreased quarter. did due for an Nik. and income during quarter-over-quarter. performance approximately was net by partially the you, at was of Total of were by million and NII million, the offsetting or a professional with additional XX% gains million fees we preferred realized was expenses, fair $XXX,XXX share capital investment up as from of expenses some a stockholders, X value first of expenses expenses few results $X.X the was number deployments. NII coverage net coupled to total of per company X.X% to XXXX. primarily financing the the portfolio end for a quarter driven the companies. $XX.X a X.X% XX%, stock $XX.X Thank of incentive our X.X% primarily The by decreased income or at the in SVP-Singer, improvement driven lower and Within The increase $XX.X there Net $X.X take non-accrual value not second At or million million unrealized the general financing up fees quarter, credit improved across management gains X.X% NII in position valuation that on from by prior operating X.X% XX% quarter. quarter. covered will primarily Total investments, minutes quarter. in strong increase based as $X.XX $X.X driven quarter GAAP resulting the portfolio larger the narrowed, first markup for spreads any income, to or in representing at debt portfolio $XXX,XXX to end, saw equity of leverage. quarter, investments and fair our first

cash compared fair we under to liquidity $XXX at credit of quarter, quality. from availability approximately to on in had X.XX the improvement June strong borrowing XXth, improved demonstrating also our credit rating a continued hand. portfolio XXXX, and facility value X.XX internal average At in weighted Our our portfolio position prior million

net primarily ratio by times, from XXXX, leverage X.XX deployment. driven Our positive was was up times XXst, on X.XX net which March

our leverage gradually to as and expect levels grow time. selectively over We to return to continue we deploy normalized capital portfolio

our brokerage at average approximately XX,XXX During $X.XX repurchased shares price of stock the of including million share, per we second for quarter, $X.X commissions. an

XXth, current June for shares X.X of buyback program. available repurchase under XXXX, As remained the million approximately

$X.XX that, the declared, September would call Xth, the Jim. to like of XXth, distribution back XXXX. to of share quarterly I record stockholders close on was With a October of XXXX return at to yesterday, announced As business per payable on

James Keenan

performance, Abby. excited we year. the Thank was hard the which pleased are work quarter and by we team, entire second with remainder our ongoing driven the In you, of are of about closing, our

positioned I support We repositioning This for Operator, questions. concludes process. shareholders portfolio lower for income portfolio, ongoing call through our and thank that so diversifying volatility. the it open goal are prepared the further our want we'd to our growing like are in this steady, of value shape and also great asset reliable well to will remarks. pursue our financial and produce to net

Operator

[Operator We'll And you. Fargo O'Shea line. Mr. One Finian We question with first longer the on apologize. no I - is take do Instructions] O'Shea Wells Securities. please. Thank our moment,

James Keenan

Thanks, - [ph]. lost there have looks it questions? [Fin] may any Is operator. like we Is other

Operator

no time. We questions further at this have

James Keenan

we've quarter. Thank the we over everyone and their everybody Great. support time called Well, you. I thank there think for I appreciate but

Operator

conference. That does your conclude today's We you for participation. thank

now disconnect. may You

BlackRock Capital Investment (BKCC) 6 Aug 212021 Q2 Earnings call transcript