![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
BlackRock Capital Investment Corporation | NASDAQ:BKCC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 3.68 | 3.66 | 3.69 | 0 | 01:00:00 |
BlackRock Capital Investment Corporation (NASDAQ:BKCC) (“BCIC” or the “Company,” “we,” “us” or “our”) announced today that its Board of Directors declared a quarterly dividend of $0.10 per share, payable on January 8, 2024 to stockholders of record at the close of business on December 15, 2023.
“We are pleased to report a continued increase in our NII this quarter which provided a healthy 131% coverage of our dividend. This marked the tenth successive quarter of increasing dividend coverage. With a relatively modest leverage ratio of 0.84x, we have the flexibility to identify compelling investment opportunities, prudently grow our portfolio and continue to increase our earnings power. The portfolio now represents a well-diversified pool of income producing assets with first lien loans comprising 85% of the investments by fair market value,” said James E. Keenan, Chairman and Interim CEO of the Company. “We ended the quarter with a well-diversified portfolio of 120 companies, more than double the number of portfolio companies we held at the end of 2020."
“With the successful transformation of the Company’s portfolio behind us, our NAV has demonstrated increased stability this year with the NAV per share at the end of the third quarter roughly flat with the NAV per share at the end of 2022. We believe this is a direct consequence of transitioning into a first-lien oriented portfolio. Against the macroeconomic backdrop of continued inflation, higher interest rates, and softening consumer demand, we remain conservative in underwriting new investments and vigilant in monitoring our existing portfolio. We believe we are well positioned to withstand the impact of a deteriorating economic environment,” Mr. Keenan added.
“Additionally, we are excited to have recently announced the proposed merger between BlackRock Capital Investment Corporation and BlackRock TCP Capital Corp. We believe that this is an opportune time to combine our companies. With BCIC having successfully transformed its portfolio, the investment portfolios of the companies are now closely aligned. We believe this transaction positions the combined company for sustained growth and would create meaningful value for the stockholders of BCIC, including opportunities to benefit from more efficient access to capital, the potential for improved trading dynamics, combined operating efficiencies, and a base management fee reduction that has been proposed in conjunction with a successful closing of the transaction. This merger is a strategic next step in the growth and evolution of BlackRock's business development company platform,” Mr. Keenan concluded.
September 30, 2023
December 31, 2022
December 31, 2021
December 31, 2020
Portfolio Composition
First Lien Debt
85%
79%
74%
50%
Second Lien Debt
11%
16%
19%
27%
Junior Capital1
4%
5%
7%
23%
Portfolio Company Count
120
116
86
55
Non-Core Assets
Portfolio Company Count2
1
3
5
6
Fair Market Value ("FMV", in Millions)3
—
9
26
42
% of investments, at FMV3
—
2%
5%
9%
_______________________________________________
1.
Includes unsecured/subordinated debt and equity investments.
2.
Excludes portfolio companies with zero FMV.
3.
As of September 30, 2023, the fair market value of non-core assets is less than $0.1 million, therefore the FMV and the % of investments at FMV of non-core assets have been rounded to zero.
Financial Highlights
Q3 2023
Q2 2023
Q3 2022
($'s in millions, except per share data)2
Total Amount
Per Share
Total Amount
Per Share
Total Amount
Per Share
Net Investment Income/(loss)
$9.5
$0.13
$8.9
$0.12
$7.7
$0.10
Net realized and unrealized gains/(losses)
$1.3
$0.02
$(7.4)
$(0.10)
$(2.1)
$(0.03)
Basic earnings/(losses)
$10.8
$0.15
$1.5
$0.02
$5.6
$0.08
Dividends declared
$7.3
$0.10
$7.3
$0.10
$7.3
$0.10
Net Investment Income/(loss), as adjusted1
$9.8
$0.13
$8.9
$0.12
$7.7
$0.10
Basic earnings/(losses), as adjusted1
$11.1
$0.15
$1.5
$0.02
$5.6
$0.08
_______________________________________________
1.
Non-GAAP basis financial measure, excluding the hypothetical liquidation basis capital gain incentive fee accrual (reversal), if any, under GAAP. See Supplemental Information.
2.
Totals may not foot due to rounding.
($'s in millions, except per share data)
September 30, 2023
June 30, 2023
December 31, 2022
September 30, 2022
Total assets
$618.0
$619.0
$589.1
$612.0
Investment portfolio, at FMV
$595.3
$595.8
$570.5
$574.6
Debt outstanding
$275.3
$283.2
$253.0
$260.9
Total net assets
$317.6
$314.0
$318.5
$332.0
Net asset value per share
$4.38
$4.33
$4.39
$4.56
Net leverage ratio1
0.84x
0.86x
0.77x
0.71x
_______________________________________________
1.
Calculated as the ratio between (a) debt, excluding unamortized debt issuance costs, less available cash and receivable for investments sold, plus payables for investments purchased, and (b) NAV.
Business Updates
Third Quarter Financial Updates
Portfolio and Investment Activity*
($’s in millions)
Three Months Ended
September 30, 2023
June 30, 2023
September 30, 2022
Investment deployments
$40.3
$20.8
$78.0
Investment exits
$43.6
$6.5
$60.8
Number of portfolio company investments at end of period
120
121
111
Weighted average yield of debt and income producing equity securities, at FMV
12.9%
12.9%
10.6%
% of Portfolio invested in Secured debt, at FMV
96%
96%
94%
% of Portfolio invested in Unsecured/subordinated debt, at FMV
3%
3%
4%
% of Portfolio invested in Equity, at FMV
1%
1%
2%
Average investment by portfolio company, at amortized cost
$5.7
$5.7
$5.8
_______________________________________________
*Balance sheet amounts and yield information above are as of period end.
New Portfolio Companies
Existing Portfolio Companies
Liquidity and Capital Resources
Conference Call
BlackRock Capital Investment Corporation will host a webcast/teleconference at 10:00 a.m. (Eastern Time) on Thursday, November 9, 2023, to discuss its third quarter 2023 financial results. All interested parties are welcome to participate. You can access the teleconference by dialing, from the United States, (866) 400-0049 or from outside the United States, +1 (720) 543-0302, 10 minutes before 10:00 a.m. and referencing the BlackRock Capital Investment Corporation Conference Call (ID Number 4863202). This teleconference can also be accessed using Microsoft Edge, Google Chrome, or Firefox via this link: BlackRock Capital Investment Corporation Third Quarter 2023 Earnings Call. Once clicked-on, please enter your information to be connected. Please note that the link becomes active 15 minutes prior to the scheduled start time. A live, listen-only webcast will also be available via the investor relations section of www.blackrockbkcc.com.
The teleconference and the webcast will be available for replay by 3:00 p.m. on Thursday, November 9, 2023 and ending at 3:00 p.m. on Thursday, November 23, 2023. The replay of the teleconference can be accessed via the following link: BlackRock Capital Investment Corporation Third Quarter 2023 Earnings Call Replay. To access the webcast, please visit the investor relations section of www.blackrockbkcc.com.
Prior to the webcast/teleconference, an investor presentation that complements the earnings conference call will be posted to BlackRock Capital Investment Corporation’s website within the Presentations section of the Investors page.
About BlackRock Capital Investment Corporation
Formed in 2005, BlackRock Capital Investment Corporation is a business development company that provides debt and equity capital to middle-market companies.
The Company's investment objective is to generate both current income and capital appreciation through debt and equity investments. We invest primarily in middle-market companies in the form of senior debt securities and loans, and our investment portfolio may include junior secured and unsecured debt securities and loans, each of which may include an equity component.
BlackRock Capital Investment Corporation
Consolidated Statements of Assets and Liabilities
September 30, 2023 (Unaudited)
December 31, 2022
Assets
Investments at fair value:
Non-controlled, non-affiliated investments (cost of $603,241,914 and $569,528,145)
$580,291,076
$551,686,646
Non-controlled, affiliated investments (cost of $1,139,598 and $3,849,638)
—
3,574,438
Controlled investments (cost of $84,419,465 and $84,922,381)
15,051,000
15,228,000
Total investments at fair value (cost of $688,800,977 and $658,300,164)
595,342,076
570,489,084
Cash and cash equivalents
8,781,026
9,531,190
Interest, dividends and fees receivable
8,039,386
5,515,446
Deferred debt issuance costs
3,101,928
1,055,117
Due from broker
2,227,876
1,946,507
Receivable for investments sold
69,434
12,096
Prepaid expenses and other assets
481,982
510,706
Total assets
$618,043,708
$589,060,146
Liabilities
Debt (net of deferred issuance costs of $743,453 and $996,839)
$275,256,547
$253,003,161
Income incentive fees payable
9,235,880
3,403,349
Accrued capital gains incentive fees
261,077
—
Dividends payable
7,257,191
7,257,191
Management fees payable
2,278,742
2,186,540
Interest and debt related payables
1,851,583
738,719
Interest Rate Swap at fair value
1,669,628
1,332,299
Accrued administrative expenses
225,478
397,299
Payable for investments purchased
—
600,391
Accrued expenses and other liabilities
2,409,378
1,618,844
Total liabilities
300,445,504
270,537,793
Net Assets
Common stock, par value $.001 per share, 200,000,000 common shares authorized, 84,481,797 issued and 72,571,907 outstanding
84,482
84,482
Paid-in capital in excess of par
850,199,351
850,199,351
Distributable earnings (losses)
(459,311,927)
(458,387,778)
Treasury stock at cost, 11,909,890 shares held
(73,373,702)
(73,373,702)
Total net assets
317,598,204
318,522,353
Total liabilities and net assets
$618,043,708
$589,060,146
Net assets per share
$4.38
$4.39
BlackRock Capital Investment Corporation
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Investment income
Interest income (excluding PIK):
Non-controlled, non-affiliated investments
$19,406,840
$14,733,808
$55,361,062
$37,986,722
PIK interest income:
Non-controlled, non-affiliated investments
1,568,546
376,854
3,597,013
626,012
Non-controlled, affiliated investments
—
114,909
31,794
347,377
PIK dividend income:
Non-controlled, non-affiliated investments
91,823
81,188
267,205
235,799
Other income:
Non-controlled, non-affiliated investments
273,219
718,634
788,780
1,280,725
Total investment income
21,340,428
16,025,393
60,045,854
40,476,635
Operating expenses
Interest and other debt expenses
5,682,588
3,337,735
15,883,269
8,927,377
Management fees
2,278,742
2,118,115
6,631,122
6,125,146
Incentive fees on income
2,070,446
1,621,402
5,832,531
1,709,758
Incentive fees on capital gains(1)
261,077
—
261,077
(1,544,569)
Professional fees
529,477
214,022
972,638
724,368
Administrative expenses
225,478
345,707
806,566
1,010,476
Director fees
208,125
149,375
657,125
455,625
Insurance expense
144,452
187,022
468,155
582,894
Investment advisor expenses
17,093
25,819
51,280
77,457
Other operating expenses
405,266
363,161
1,192,695
1,129,757
Total expenses
11,822,744
8,362,358
32,756,458
19,198,289
Net investment income(1)
9,517,684
7,663,035
27,289,396
21,278,346
Realized and unrealized gain (loss) on investments and Interest Rate Swap
Net realized gain (loss):
Non-controlled, non-affiliated investments
204,267
370,660
242,069
1,196,573
Non-controlled, affiliated investments
—
—
(441,906)
—
Net realized gain (loss)
204,267
370,660
(199,837)
1,196,573
Net change in unrealized appreciation (depreciation):
Non-controlled, non-affiliated investments
1,248,945
(1,281,032)
(5,109,339)
(13,693,406)
Non-controlled, affiliated investments
—
102,585
(864,398)
332,256
Controlled investments
52,000
(232,073)
325,916
690,314
Interest Rate Swap
(196,560)
(1,015,964)
(594,314)
(1,214,658)
Net change in unrealized appreciation (depreciation)
1,104,385
(2,426,484)
(6,242,135)
(13,885,494)
Net realized and unrealized gain (loss)
1,308,652
(2,055,824)
(6,441,972)
(12,688,921)
Net increase (decrease) in net assets resulting from operations
$10,826,336
$5,607,211
$20,847,424
$8,589,425
Net investment income per share—basic(1)
$0.13
$0.10
$0.38
$0.29
Earnings (loss) per share—basic(1)
$0.15
$0.08
$0.29
$0.12
Weighted average shares outstanding—basic
72,571,907
73,170,323
72,571,907
73,551,057
Net investment income per share—diluted(1)(2)
$0.13
$0.10
$0.38
$0.29
Earnings (loss) per share—diluted(1)(2)
$0.15
$0.08
$0.29
$0.12
Weighted average shares outstanding—diluted
72,571,907
73,170,323
72,571,907
83,884,141
_______________________________________________
(1)
Net investment income and per share amounts displayed above are net of the accrual (reversal) for incentive fees on capital gains which is reflected on a hypothetical liquidation basis in accordance with GAAP for the three and nine month periods ended September 30, 2023 and for the nine month period ended September 30, 2022. Refer to Supplemental Information section below for further details and as adjusted figures that reflect that there were no incentive fees on capital gains realized and payable to the Advisor during such periods.
(2)
For the nine month period ended September 30, 2022, the impact of the hypothetical conversion of the 2022 Convertible Notes was antidilutive.
Supplemental Information
The Company reports its financial results on a generally accepted accounting principles (“GAAP”) basis; however, management believes that evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP basis financial measures. Management reviews non-GAAP financial measures to assess ongoing operations and, for the reasons described below, considers them to be effective indicators, for both management and investors, of the Company’s financial performance over time. The Company’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
The Company records its liability for incentive fees based on capital gains (if any) by performing a hypothetical liquidation basis calculation at the end of each reporting period, as required by GAAP, which assumes that all unrealized capital appreciation and depreciation is realized as of the reporting date. It should be noted that incentive fees based on capital gains (if any) are not due and payable until the end of the annual measurement period, or every June 30. The incremental incentive fees disclosed for a given period are not necessarily indicative of actual full year results. Changes in the economic environment, financial markets, geopolitical conditions and other parameters could cause actual results to differ from estimates and such differences could be material. There can be no assurance that unrealized capital appreciation and depreciation will be realized in the future, or that any accrued capital gains incentive fee will become payable. Incentive fee amounts on capital gains actually paid by the Company will specifically exclude consideration of unrealized capital appreciation, consistent with requirements under the Investment Advisers Act of 1940 and the Company’s investment management agreement. For a more detailed description of the Company’s incentive fees, please refer to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, on file with the SEC.
Computations for the periods below are derived from the Company's financial statements as follows:
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
GAAP Basis:
Net Investment Income
$9,517,684
$7,663,035
$27,289,396
$21,278,346
Net Investment Income per share
0.13
0.10
0.38
0.29
Addback: GAAP incentive fee (reversal) based on capital gains
261,077
-
261,077
(1,544,569)
Addback: GAAP incentive fee based on Income
2,070,446
1,621,402
5,832,531
1,709,758
Pre-Incentive Fee1:
Net Investment Income
$11,849,207
$9,284,437
$33,383,004
$21,443,535
Net Investment Income per share
0.16
0.13
0.46
0.29
Less: Incremental incentive fee based on Income
(2,070,446)
(1,621,402)
(5,832,531)
(1,709,758)
As Adjusted2:
Net Investment Income
$9,778,761
$7,663,035
$27,550,473
$19,733,777
Net Investment Income per share
0.13
0.10
0.38
0.27
_______________________________________________
1.
Pre-Incentive Fee: Amounts are adjusted to remove all incentive fees (if any).
2.
As Adjusted: Amounts are adjusted to remove the GAAP accrual (reversal) for incentive fee based on capital gains (if any), and to include only the incremental incentive fee based on income (if any). Adjusted amounts reflect the fact that no incentive fee on capital gains was realized and payable to the Advisor during the three and nine month periods ended September 30, 2023 and 2022, respectively. Under the current investment management agreement, incentive fee based on income is calculated for each calendar quarter and may be paid on a quarterly basis if certain thresholds are met.
Forward-looking statements
This press release, and other statements that BlackRock Capital Investment Corporation may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRock Capital Investment Corporation’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.
BlackRock Capital Investment Corporation cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which may change over time. Forward-looking statements speak only as of the date they are made, and BlackRock Capital Investment Corporation assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
In addition to factors previously disclosed in BlackRock Capital Investment Corporation’s SEC reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) our future operating results; (2) our business prospects and the prospects of our portfolio companies; (3) the impact of investments that we expect to make; (4) our contractual arrangements and relationships with third parties; (5) the dependence of our future success on the general economy and its impact on the industries in which we invest; (6) the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives; (7) our expected financings and investments; (8) the adequacy of our cash resources and working capital, including our ability to obtain continued financing on favorable terms; (9) the timing of cash flows, if any, from the operations of our portfolio companies; (10) the impact of increased competition; (11) the ability of our investment advisor to locate suitable investments for us and to monitor and administer our investments; (12) potential conflicts of interest in the allocation of opportunities between us and other investment funds managed by our investment advisor or its affiliates; (13) the ability of our investment advisor to attract and retain highly talented professionals; (14) changes in law and policy accompanying the new administration and uncertainty pending any such changes; (15) increased geopolitical unrest, terrorist attacks or acts of war, which may adversely affect the general economy, domestic and local financial and capital markets, or the specific industries of our portfolio companies; (16) changes and volatility in political, economic or industry conditions, the interest rate environment, inflation, credit risk, foreign exchange rates or financial and capital markets; (17) the unfavorable resolution of legal proceedings; and (18) the impact of changes to tax legislation and, generally, our tax position.
Certain additional factors related to the Merger could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (1) the timing or likelihood of the Merger closing; (2) the expected synergies and savings associated with the Merger; (3) the ability to realize the anticipated benefits of the Merger, including the expected accretion to net investment income and the elimination or reduction of certain expenses and costs due to the Merger; (4) the percentage of our and TCPC stockholders voting in favor of the proposals submitted for their approval; (5) the possibility that competing offers or acquisition proposals will be made; (6) the possibility that any or all of the various conditions to the consummation of the Merger may not be satisfied or waived; (7) risks related to diverting management’s attention from ongoing business operations; (8) the risk that stockholder litigation in connection with the Merger may result in significant costs of defense and liability; (9) changes in the economy, financial markets and political environment, including the impacts of inflation and rising interest rates; (10) risks associated with possible disruption in the operations of BCIC and TCPC or the economy generally due to terrorism, war or other geopolitical conflict (including the current conflict between Russia and Ukraine), natural disasters or public health crises and epidemics; (11) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (12) conditions in our and TCPC’s operating areas, particularly with respect to business development companies or regulated investment companies; and (13) other considerations that may be disclosed from time to time in our and TCPC’s publicly disseminated documents and filings.
BlackRock Capital Investment Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 1, 2023, and the Company's Form 8-K related to the Merger Agreement, filed with the SEC on September 6, 2023, identify additional factors that can affect forward-looking statements.
Available Information
BlackRock Capital Investment Corporation’s filings with the SEC, press releases, earnings releases and other financial information are available on its website at www.blackrockbkcc.com. The information contained on our website is not a part of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231108698998/en/
Investor Contact: Nik Singhal 212.810.5427
Press Contact: Christopher Beattie 646.231.8518
1 Year BlackRock Capital Invest... Chart |
1 Month BlackRock Capital Invest... Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions