TCPC - Earnings call transcript Q4 2019 | BlackRock TCP Capital Corp.

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Operator

Ladies and gentlemen, good afternoon. Welcome, everyone, to BlackRock TCP Capital Corp.’s Fourth Quarter and Full Year 2019 Earnings Conference Call. Today’s call is being recorded for replay purposes.

During the presentation, all participants will be in a listen-only mode. A question-and-answer session will follow the company’s formal remarks. Instructions] [Operator

would of the Global BlackRock team. please I Katie over Investor to Katie, Director McGlynn, TCP proceed. like now call turn to Relations And Capital Corp.

Kathleen McGlynn

you. Thank

may estimates and performance. of note this I’ll statements, begin, of the assumptions statements guarantees and we the conference are management Before not call on based contain time that such at forward-looking future of

are made from and as call statements actual materially Any and and risks today notice. subject made differ uncertainties, change those involve on forward-looking are statements Forward-looking could results projected. without this of to

This fourth morning, XX, year we XXXX. issued and December our earnings release for ended quarter the full

We also was reviewed click in Investor These Form Relations presentation, at slide which be website posted we Events company’s XX-K, documents which link will should the and this on our the select with on a & please earnings to refer Presentations. conjunction To call, the morning. presentation tcpcapital.com. the SEC view to filed with supplemental today’s

the turn our now Chairman will Levkowitz. Howard call I CEO, and to over

Howard Levkowitz

I’m Paul financial Katie. comments, closing in for team. I will And today. call an our here review will before our start remarks TCPC Paul’s the everyone with our on then CFO, and of your will opening our questions. participating XXXX; overview results. we performance some After to Davis, our thank with I Thanks, provide call

XXXX, in Slide on summarized key X presentation. are our which our with accomplishments Beginning of

and with sources, identify of relationships First, the both investment platform borrowers deal attractive long-standing we our leveraged to BlackRock and opportunities. power

portfolio companies. XX% million XX almost existing which we of came $XXX invested For from XXXX, in all of investments,

We diversification. also continue portfolio emphasize to

less investments of company investment December was XX, or than of X% total portfolio as Our XXXX. just $XX.X average million

decline $XX.X income, the LIBOR. increase of in million XXXX, a in yields a Second, despite slight XXXX interest from generated we pressure on from net

our X covering every also nearly We track for years. our record of dividend quarter regular continued

continue financing to on debt and shareholder-friendly we terms. Third, seek attractive

at XXXX notes XX in and on X.X%. is of December, points. a X.XX% a significantly $XXX we This million the the effort, by lower matured due we total reduced issued successfully that this facility than basis rate rate credit also Toward of of notes SVCP our convertible

hurdle with XXXX, incentive limitation the the X%, reduced to connection while greater to financed X. reduced shareholders’ with the an We management return rate regulatory in our only X% early in in structures our than increase approval X leverage which we and rate on the our cumulative maintaining the fee XX.X% is one reduced industry. we in Finally, assets fee hurdle, of of leverage to total such to

faced industry. that on of X high-growth Fidelis years I in in address company-specific Before investment a X client Fidelis we fourth our of highlights, the this with underwriting value. moving of the calls, to quarter would our initial The our asset decline net our described for At ago, increasingly industry accounted write-off is strong in almost quarterly all Fidelis to base. several the cybersecurity decline. On competitive earnings in like time challenges the last our more than year-over-year operating

with capitalized loan-to-value. a well was low company The

rather in but management the company. industry team our However, turnaround the further team alongside the to several accelerated in issues, react to sponsor dynamics worked management these sufficiently decided owners the and ultimately, extensive experience, Utilizing than years. to to to and failed our invest that to the last in the try resolve exit shift team

or broader with macroeconomic were faced indicative issues believe not this result, other of any and Fidelis the distinct satisfied We trends. are are not challenges but by

highlights Moving the to a few quarter. from

first of today, dividend quarter payable XX of shareholders declared As as shown per on a X, earned by $X.XX per we on of share, March $X.XX. income our Slide record And dividend investment share to $X.XX we of net March outearning XX.

deployments, of totaling quarter million. delivered the we Dispositions $XXX were strong in million. Additionally, $XXX quarter another

to XX% consistently had we in portfolio $X.X diversification. which a X market fair as seniority senior year-end, was value of focused billion, on as of our portfolio, at constructing of have our Turning well Slide secured presentation, the debt. In

December X% our of X together, side represented set Slide the largest only of the of of the a than is on portfolio. as our companies. position income distributed X our portfolio, XX, represented portfolio diverse taken Furthermore, chart As the XX% less positions and across of largest illustrates, left recurring

portfolio company. not are from We on income reliant one any

basis, contribute In than our well company of companies portfolio fact, X% less over half our income. on an each to individual recurring

lien and floating XX% first as exposure. rate emphasis At first consists with Our investments an of predominantly were X. portfolio demonstrated XX% debt Slide lien of on to yearend, on our continues be rate floating exposure,

now I take in investment more team’s to detail approach, X throughout remained our investing minute to has which on provide of would middle-market like consistent our a companies. decades

of deep knowledge leverage expanded and We opportunities. resources our to and experience access investment the industry attractive identify platform BlackRock continue broader flow to to additional in to deal addition the

existing the deployment In To this of of Follow-on point, to investment fourth half investments nearly XXXX, existing of which in investments included XX continue from companies an borrowers. borrowers. loans, be new portfolio in with opportunities. quarter existing our were source X new came activity important

the we to reflect a we these and relationships believe these well. of and capital. From opportunities deliver borrower management understand just know risk credits beyond portfolio strength perspective, value our them the are We

terms to which on creditor protections. continue negotiations, us investments deal set We allow where we lead also with co-lead to solid focus our

deal the in ability to investments Our demonstrate drive the flow access to well quarter our as underwrite. terms in our as unique fourth investments we

of lien the Group. million presented The company Financial investment compelling history opportunity. senior was Barri provider a quarter Barri to operating has Our growing Hispanic a XX-year as diversified community. a term leading largest underserved investment in secured first and $XX financial services often the to loan consumer a rapidly

the We of us and include nature deal into led a diversified allowing documents lenders, business. to taking group creditor negotiate the terms loan to X protections, account of

Software, loan size The solutions. with significant software million million. lien loan $XX investment follow-on a increasing provided to first total a secured company dedicated is senior also of developer our $XX asset to the largest We Snow management term

software incremental the underwriting dollars industries provided Overall approach exposure diverse with invest the financing variety relative they originally we applications. lien optimize with our loan will in significantly enterprise in growth Snow Software assumptions. helps to in in company a quarter to term time, budget and fourth provided strategy. quarter that investments underwriting. The our demonstrate significant building the Software’s our Snow a portfolio disciplined inorganic has to companies Since of a first outperformed and Snow XXXX. fourth the emphasis on February We support

payoff investing $XXmillion us our can that importance economic that and quarter through and of in International to experience consistently industries our $XX X of loan the our reminds million Tradeshift. totaled in Our KPC loan companies Software to of decades the includes of loan $XX Bond cycles perform throughout million million Healthcare, Dispositions multiple to $XXX the cycles.

result The last New investments of during quarter at higher-yielding effective the as yield positions weighted a portfolio end reduced. LIBOR. were compared either overall XX.X% as yield effective primarily XX.X% in several on our we of the average or Investments average effective repaid had to the of decline yield X.X%. of had a XX.X%, was quarter quarter, debt a weighted at exited end

from downward pressure LIBOR. immune portfolio in is decline resulting on not yields Our to the

our that its merits each However, produce own and unique returns credits for risk-adjusted we appropriately on priced remain strong shareholders. focused on selecting evaluating investment

X on we’ve dividends and Fargo shown of and Index since As returned respectively, per outperformed $XX Wells Slides by share excess XX, IPO. XX% in the in BDC our

results. our call will over financial discuss Paul, Now will to turn who I the

Paul Davis

dividends $X.XX hello, per our Howard, our million record net investment Thanks, every dividend for per Slide based $X.XX by this of basis, the the went of regular and we’ve total for on everyone. $X.XX year-end. exceeding cumulative outstanding extends we XX, quarter out-earned X-year This share, nearly dividend an substantially our dividends period year. $XX aggregate shares income net income $X.XX, share at since a On per annual share. quarter or fourth Starting public. investment on was was our Over covering our an on the out-earning basis,

amortization share of $X.XX $X.XXX. substantially was PIK all Investment income fourth cash interest which was fee income. $X.XX income interest $X.XX, of quarter includes This and of for the recurring discount of recurring and per

share both unamortized income. from fees We dividend prepayment OID $X.XX and per from including also prepayment income, $X.XX and generated

Our income economics generally policy at upfront of all investment recognizing time over than follows rather investment of is amortizing our it the recognition an the conservative life the of made.

XXXX. to expenses took $X.XX rate share share. and the Incentive in Operating $X.XX February XX.X% fourth share during expenses for and per on of our other as $X.XX fourth share fee X, per interest per of included quarter $X.XX from the reduction investment quarter effect reflects for incentive income of were debt as that compensation XX% the incentive well net compensation per

driven net assets of $X.X per was The share by decrease disposition net or earlier. Fidelis Howard in discussed as million the of $X.XX primarily

million from scrutiny. income. is and net Our interest to to million and of down correctional Securus asset $X.X net a the from service Edmentum, interest in loan providers were on facilities $X.X prison quarter our quarter political offset provider by traded benefited leading markdown during a communication Securus services gains recent value regulatory during of subject the in as

and However, well of done our has be to it investment. to company the covered continues strongly over the as our X-year continues course loan perform

investing of company the as gain significant our the with Edmentum The a efforts special through situations results challenges, from expertise. our number of deep team leveraging work on we manage to

that and the results which We lifted are to improved performance are has these of efforts of our in value equity holdings. the pleased the show continuing company, financial debt

December Avanti loans These X.X% X.X non-accrual. XX, portfolio at and – loans companies, loans % of on X cost. we and had value we fair As the portfolio of at had AGY X to represented

leverage to net May cash This at million, reduced of In settlements we the million capacity by quarter and basis XX, on of pending $XX SVCP liquidity included of both available we to million, rate expanded points $XXXmillion total had extended million. Turning the and facility net $XXX end. XX $XXX of our XXXX, of interest by XXXX. $XX credit maturity facilities facility our Slide a

earlier at issued XXXX X.X%. The of X.X%, average November. convertible us million issuance was rate million unsecured $XXX a as favorable year outstanding notes credit Subsequently, the in Our in rate notes on weighted expansion XX $XX for gave the follow-on interest plan X-year a debt flexibility including of at we December facility our December. of maturity in we our

issuance; million low and credit $XXX X includes: at now December SBA cost Outstanding draws issuances unsecured program XXX. on our leverage program an note SBA facilities: convertible program. straight one, million two, at diverse Our remained note $XXX

as all rating agencies rating Fitch. We S&P, X of have investment-grade rating reaffirmed investment-grade coverage an now year, are in and rating also its We Fitch of this also investment-grade. S&P major from rating – pleased at Moody’s that January initiated agencies TCPC at

at XX Net times cash X.XX X well and September of to debt trades following leverage flexibility regulatory SBIC of leverage, unchanged which remains is limitation X last increased our leverage shareholder net common outstanding approval equity, our from year. within

back I’ll over turn call now Howard. the to

Howard Levkowitz

conclude the outlook growth optimistic and outlook U.S. I’ll the our Paul. the economic XXXX market and questions. a GDP growth before few call comments in of support to Thanks, half opening cautiously with including employment XXXX. for first the indicators for

domestic the decision-making on XXXX we including investment However could capital political pending and election weigh business planning. think long-term uncertainty presidential expenditure

other like and to volatility create coronavirus geopolitical disruptions addition, uncertainty. continue the In

While shareholders uncertain, is have TCPC. our delivering expect our the come may outlook economic to the on be focused team from results

its strategy in the investment decisions company, number each comprehensive a disciplined We based only on of opportunities a make remain of and we industry our quarter. management dynamics. analysis highly relevant small underwriting, each and We review team executing investment

monitors evaluates financial of committee investment investment holdings. each our and regularly evaluates the committee Our each investment of performance each

selective perspective, while we credit cycle. resources prudently matters select experience where to To the identify with ability the X borrowers selectively our and grow our cycle less vast end, BlackRock’s decades the approach, to business. draw with in that our providing align to From – we capture upon team’s are solutions our their opportunities help opportunities financing that throughout than of investment

downturns. and source unsecured strong We have credit secured through debt bonds equities, outperformed economic continue other senior historically to opportunities, which

highly diverse will also underweight we broadly to While a portfolio. industries, continue cyclical maintain

are we for returns shareholders risk-adjusted environment, cautiously remain generating In about strong and the closing, operating focused on while the years optimistic challenges, presented XXXX we ahead. in our

that, please with the line And open for operator, questions.

Operator

the Thank Kotowski line question you. with [Operator Chris comes Oppenheimer. from Instructions] Our of first

Your open. line is

Chris Kotowski

quarter? – – that I capability driven? the was to Or is noted secondary Yeah, their the trading that purely good diminution Securus, in debt ask any afternoon. there just markdown wanted is market service during on you

Howard Levkowitz

it was the a deal, It levels. with club and several based on It’s politicians coincided some business illiquid trading headlines from model. on it’s

thing under number period We have court, for practices. a fact, of We a financed of headlines But There happened. up from prior acquisition, in come and years. it’s similar on re-upped its where ownership. company under prevailed was a the couple in And the the wound X a politicians. last under company

clear the The company in these prisons concerns, their country. in critical families, very a is made company that of through and a we the satisfy business, it mostly and connections is has provides itself working it and to around that with running between series contracts believe that public public prisons prisoners

time support out counterparties in it last scrutiny, the the came fact, in And company. through went of some

Chris Kotowski

And on right. is no any is all recovery of Okay, that that, closed, that complete prospect Fidelis, on exit there’s right? chapter

Paul Davis

what tough business the going to move characterization is closed. the I very remarks. the The his We it But did. saw But incident. decision And as in accurate. use. the That’s to and most further isolated fund and we Howard is just exactly or the an which really, commentary to view make words we your unfortunate, on, chapter I is was opening covered take think of over option it but

Chris Kotowski

Okay. just Howard. more And big then, picture, I somewhat guess,

tell, it is in You all the more economy bit are can is your sounded far that as any that just companies thus see? we can I and or seeing very cautionary knowing a market economics that coronavirus headlines is understand. of you stock still that’s the primarily, as on this recent, for what far coronavirus change all And reasons portfolio uncertain and the and the

Howard Levkowitz

say we about To it, weeks Chris. impacted. last would not to that not any the of portfolio because of are caution, date, that noted said, companies have the be market something thought given activity, been we with Well remiss. couple We aware

be and exposure. world’s economy, that we was it But less note thought mostly And something the it, but flag largest you diverse, we so, has that’s that non-cyclical second we if portfolio a did to have impacted. built impacting could is important international have is and we highly

Chris Kotowski

Okay. for enough. Thank fair All it right, That’s you. me.

Howard Levkowitz

Thank you for your questions.

Operator

Thank you.

James. the of Dodd Robert Our Raymond of line next question from comes

is line Your open.

Robert Dodd

Thank you. Hi, guys.

the of Just I when largest luxury look But producer but, textiles, the obviously, and to on up businesses. look your of is following when at segment, and I and goods, mean, for obviously, fastest-growing lending – goods. you’re I one China industry textiles coronavirus, at third-largest luxury the U.S. markets

– in could have while that So particular? do chain that disrupted expectations indirectly that the impact you segment, get any supply and

are like at side, of on back of China work. XX% the I there’s mean, out Obviously, news that smaller still only businesses small actually

your to tell or is you more could So potential too us supply it any early about give just color businesses? chain impact to

Howard Levkowitz

the that a it’s to businesses. great companies our primarily are Yeah, portfolio, that fall into category question. With licensing respect

Klein. So we stores, are through various These include PSEB which companies. The Eddie sold other who and are multichannel. online financing broad the Cole, channels, is Kenneth diversified licenses Bauer, are licensors very Anne through ABG,

licensor So businesses. these are series a of diversified

Now, around a their Asia and underlining manufactured the licensees products for are, of primarily in that sell lot these course, products. the of world

But businesses impacted. of revenue they minimum to and anything. be of many may not these And date, And have reasonable so, of streams that guarantees disruption, lot it’s there’s to from counterparties. have a broad heard if assume their we

sensitive of several portfolio. had we less intentionally We’ve this as So cyclical, retail constructed about occasions. a on part this the talked less

is we’ve doing retail last years. business. really and license what deals, Bauer really is is; As on the things the the thought focused doing that’s about doing and We other One Eddie the asset-backed two deals. few

license coverage have coverage hard we stream these asset others. on of some and the So on

Robert Dodd

you. not appreciate Fidelis, Got Fidelis. got really I every but it, Howard. helpful, it. it, Thank On

your be if the risk? books could great big so I various we there software, high. segment stays can between – They your decent there I which pretty your companies, Internet have business of book, Software precipitating a customer be customer. concentrated as is of it’s a causes, relatively that that portfolio other and can obviously, software obviously, – remember Is has one of software represent customer of in portfolio, retention right. long high of lost Fidelis, a are of – think components any margins, rest should software, obviously, the other decent and been aware a which pretty software

Rajneesh Vig

was is book, take there’s – distinguish a your company. I’ll it’s we rest lot be subscription software security business. a seeing it’s versus point, sell. breaches. it’s in more different it’s the Raj. know focus if that. The sales of to cycle, a to of very tougher be from Fidelis an the working, value very it. a further than or when – a And company Fidelis don’t And working, don’t proposition value It’s software that. it’s recurring We no. And we security software honest, It let’s to focus honest, Thanks. is you’re answer what the the with generally on – because a we of product enterprise area It’s proposition And where is less retention. to sale elements you different the not on

and So way learned will, it’s it’s business – segment tougher you which good the if such as but profile the a as credit deteriorating. a was along tougher we a high-value

coming So any and But are nature of them predictable, the rest of is similar of back high contractual main to recurring of question, on software, I really more some margin, the them think some are them horizontal it not I the a the Fidelis, business of of within to customers. really revenue concentration streams high your would both vertical. as concentrated characterize the and

Robert Dodd

appreciate can Obviously, the million. more on I this of that. kind side. $X.X I roughly accounting if it. dividend Got One year, the

book. the dividends, show dividend your Capital don’t came they piece but lending up JV, to partners material now, pretty That in in had grow be is line. Obviously, which a that K. conventional according small from but the could right Street of more of XXth $XXX,XXX All the to

income line, dividend on the it’s units. LLC statement? tell not why in So from where included given member us can that And you its distribution the is

Paul Davis

interest look a through. to It’s is one That through look a income. the

we section. include the So income it interest in

Robert Dodd

Got you. it. it. Thank I appreciate

Paul Davis

Sure.

Operator

Thank you.

comes of the Fin line with question next from O’Shea Our Fargo. Wells

Finian O’Shea

taking Hi, good you question. Thank my for afternoon.

Sorry quarter stood think, year coronavirus most pressure something potential the be immediate out to that But is that would to domestic mostly looked the the impact, make quarter. I that’s me, were as to gather, expertise you the as these this what we developments what of a given with from has it BDC that provide all but see is was fair say, airlines the to one last post at there a manager couple you’ve I that point there? Mesa

Howard Levkowitz

Yeah. of to rest and us Thanks for morning still the here and the question, wished afternoon. you good who you have Monica. in Santa It’s

We’re exposure. Mesa, it U.S. regional very so a the is Mesa doesn’t out, feeder carrier, comfortable with exposure. a the you it s have to as and the point majors international

Of but in these course, to whole subject loans. slowdown are could industry asset-backed the a travel, be

We have engines.

we’re We function, of These the U.S. for necessary many and attachment really regional on are with planes. comfortable are the substitutable large have And system of the feeder which which collateral backbone hubs, our carriers. the are engines feeds them. points, legacy these jets, planes to

partner. so great great running been a They We’ve it. job years. known them decades. for for many We’ve over is financing a And Mesa do X management senior

was We also underlying real themselves. loans, these with when values. made the of feel And them the collateral we very comfortable hard assets the focus

Finian O’Shea

appreciate And question that. Sure. follow-on just on AGY. a I portfolio

on a mark legacy name, sort think sub-debts quarter. that – Obviously, the nonaccrual. I of your this was another

around and your sort it across treating looks a first is you’re given marked that lot – if lien wondering Just at equity sub par the moves of income. like as

lien part stack. case, later this it’s the taxable any if as if there current the near-term continue the to versus capital Is this Why given second at maturities year? question. the of outlook underwater the there that’s a maturity. income really second And accrue on So is

Howard Levkowitz

Yeah.

are spiked a What’s the quarters. is last we military have the fundamentals industrial, that one commodity of that. now higher levels. said of business first. of metals it’s good manufacturing costs make is They times most last fundamental record record been at Their that – sophisticated our unusual some and cycles. than which not couple soared to the part years. call, is a a disappointing and way. normal was me company. in Let XX is about They used the address It’s in on last This for line the This glass-based process, is high-end input We’ve high talked top consumer uses. composites up of It’s the X that use an good. really XX% up as where – it of

flow. And so pressure has creating that been on company’s cash the

that’s why and then some was so cash-paying the of ultimately this pick on And seen then a on which went instrument, what nonaccrual. to you’ve movement

Finian O’Shea

context. you thank for that appreciate And taking I my Okay. questions.

Howard Levkowitz

Fin. Thank you,

Operator

Thank you.

comes question next with line Chris from Our the York of Securities. JMP

is Your open. line

Christopher York

my guys, morning, taking and Good thanks questions. Yes. for

the other So professionals, Howard heard for a be to wanted We’ve managers it of moment. about just talk or direct a investment Raj, Tennenbaum lenders. for couple anecdotally or

employees churn over of in But there cultural any your elsewhere] we if you or BlackRock, the acquisition that the TPC induce [to from happen think operational changes So obviously, employment light industry. this the in at does are could know changes [ph]. of seek at manager to BlackRock wanted

Howard Levkowitz

that take one. I’ll

the no. think is answer I shorter

think you expect not and – team, able both people growing. on because see we’ve – it as from had on, I we’ve have we’re had we’re additions because obviously, to be externally, internally BlackRock the more we also coming and to to come may

think the opportunities. people find in I business we’ve some always of other had level

and way the way because good And I interesting And been I are for do think generally, it’s they’ve something they is, place going I – a – that’s at going. of able that’s particularly look to where what the the it been they define case. are here.

to we’ve do pretty doing think, interest in which early or of team stages change level what people joining have actually the on they rather, done the we’ve something influx lot that. standalone We’re better abnormal moved for we’re is been proud of of seen actually, what a just And to don’t see that and exciting. when platform, a But of of the works of them. I of as things I because combined able any

Christopher York

to hear. on just Okay. Maybe follow-up a that. good It’s

provide year-end any you you previous maybe professionals us it what color at on the could year? versus had was in investment the So

Rajneesh Vig

to say a margin. same. If But I numbers, say about I have exact yes, at those don’t not, that… the want but the I’d it’s few more

Howard Levkowitz

grew growing we In the number total been We public professionals investment we acquisition almost vehicles of BlackRock, connection investment over of working our number have that have, across our and the professionals with private total time. by we XX%. increased and by

so well X more And XX and our XX staff The of many we most a years over them have and is average of decade and senior have years. a robust us than a people we of here significant of had. tenure few the – most senior ones, over been

prior So hire. we We’ve platform business, have growing seniority pleased significant join are us tenure and and the to a been Raj’s of to and coming with from we’ve the been just in interest lot and echo people the in continuing comment.

Rajneesh Vig

if Chris, you’re the we’d of resume, and if looking send love Yeah, to your it the to source question. take that’s

Christopher York

acquisition closed. on it’s is, think XX maybe Last very that. much I is topic that thank just one since you been the for months Yeah,

So you has shareholders been think what do biggest from the benefit for today acquisition? the

Howard Levkowitz

resources. structure. will market. counterparties like go other be that across they a the of a This credibility that I group brand working what talented world’s that are with do gotten. to and borrowers of to largest of is there’s found we kind And a our They information one knowing just with series great Capital, is, benefits asset But powerful. support there is fantastic out or niche public business us manager. They in knowledge. wish we And our clear like add if things built There and with and organization. doing I Tennenbaum that, Howard. the very we’ve that to think that is embrace a large to are also and we’re people as biggest that their many there like They capital the

Christopher York

obviously, then, that cost know there. obviously, you’ve your new reduced capital of And the it. Got and we investment-grade rating debt

So there I benefits. benefit. the what thought obviously, are you curious many just biggest And was was

a I originated surprised heat it that quarter, think my summer. an I did in that the notice this to what investment it’s given switch question. firstly would I bit Juul has I was So interesting in last and down little

simply of was So was you or that encouraged a function cash it flow and amortization? paydown by just

Paul Davis

asset So, so it’s a significant as loan it. And protections raised junior significant associated we has serious features a has structured coverage. highly been continue of and with to has and public, capital that Juul recently have

we And the been just as so, paying contemplated. loan they’ve down

Christopher York

And, have Got it to for [ph]. may That’s for me. you up [that it. Thanks. resume Raj, brush you]

Rajneesh Vig

Thanks, Chris.

Operator

[Operator you. of comes Christopher the Ladenburg Thalmann. Thank next Our from Instructions] question line Nolan of

Your line is open.

Christopher Nolan

election, deal expect a the close activity and the a to we it’s slowdown should is the Sanders nominee turning Howard, race, become of origination in if in year? second-half the

Howard Levkowitz

It’s a comments. question. our about earlier that We in good talked

we down that election activity. caused far side congressional clearly, think ranker And a is presidential lot XXXX, think was angst a felt business about along you and there that of to elections election than If that the last a be And around election that in local slowed it. I that. impactful had people there of going more were number of

the different businesses some regardless some is and of pause. think out of give we that enunciation candidates so, the of parties the the of rhetoric and of to policies very different ticket, And agendas discrepancies the who’s coming the on the likely between

and Our portfolio is of sort through capital projects. heavily the preparing been It’s in reorientation last part less weighted years, to going long-term This X of a X for or a expenditures intentional. change for we’ve is items. they’re economic probably there less economy more lot immune, ticket of the big in have a CapEx-heavy or susceptible But we that doesn’t portfolio. clearly, have But slowdown. mean still companies a and an than we’re the

Christopher Nolan

it in how conversation? of corona or the negotiations and Thank driving your the is another new corona you. overall discussion – also a just And follow-up, the possibility and terms pandemic a affecting question, as investments? of How’s

Howard Levkowitz

vast Obviously, including in this very resources, a of new. countries. BlackRock the is more offices impacted has number

data flow many. expanded sources data our more than so, And and probably are

trying people’s to we’re first concerns safety, happen that in for things balance, so, an and foremost, also And obviously companies. but caution could about appropriate

you will many people will real that off resume markets whether normalcy, slowly, into certainly markets, U.S. under more seen. term, a see that is as for business I bit remains most be tend move traded normal backing recent will caution, the little are and life in the and spill go to little assumption this that particularly in a can pass our to a about normal in the bit But the more to more businesses, think are it negotiated trying and and and which

of some But working probably the on we’ve people are would will on get the dynamic of risk. deals done last they few taking the in margin, in counterparty the and of markets with as on been bit things line little weeks, instead know a more say side a trusted more I across lender/borrower the favor the probably it’s capital interested the that borrower tilted getting lenders some quickly

Christopher Nolan

it. Got

Thank Okay. you.

Howard Levkowitz

the question. for Thanks

Operator

not I’m to closing would any to now like further Levkowitz over back remarks. turn Thanks. the I call questions. showing Howard for

Howard Levkowitz

for This Thanks questions TCP our concludes hard of Corp. today. your work today’s support; at appreciate Capital for call. of again and your confidence and continued professionals I’d to team like dialogue talented BlackRock our shareholders and and joining thank for your We continued dedication. our experienced all your and us.

Operator

you Thank Ladies today’s gentlemen, participating. concludes conference. and for this

may a You disconnect. wonderful have now Everyone day.

BlackRock TCP Capital (TCPC) 26 Feb 202019 Q4 Earnings call transcript