TCP Capital -3.5% after secondary


The offering size is 5.4M shares with the underwriter greenshoe option at 810K shares. The float will be boosted in the area of 17%.

TCPC -3.5% AH

Comments (9)
  • BDC Buzz
    , contributor
    Comments (4559) | Send Message
     
    This is an opportunity for investors to start a position in one of the higher quality BDCs with shares currently trading down 4% in after market. This will be an accretive offering and good for investors.
    28 Jul 2014, 04:57 PM Reply Like
  • BDC Buzz
    , contributor
    Comments (4559) | Send Message
     
    Some large after hours trades are going through at the full price of $17.77. Someone is buying.
    28 Jul 2014, 05:54 PM Reply Like
  • WhitneyB
    , contributor
    Comments (893) | Send Message
     
    Just added @ $17.15; this has been a very good BDC for me.
    28 Jul 2014, 05:01 PM Reply Like
  • jzmyatt
    , contributor
    Comments (76) | Send Message
     
    From their filings this evening:

     

    "From April 1, 2014 through June 30, 2014, we invested approximately $168.6 million in senior secured loans to nine new and five existing portfolio companies with a weighted average effective yield of 9.9%. Additionally, during the three months ended June 30, 2014, we received approximately $87.9 million in proceeds from sales or repayments of investments with a weighted average effective yield of 9.8%.

     

    We estimate that net investment income, after preferred dividends and incentive compensation on net investment income, will be in the range of $0.39 to $0.40 per share for the three months ended June 30, 2014, including current period interest and debt cost amortization associated with the issuance of our convertible notes. We estimate that net increase in net assets resulting from operations for the three months ended June 30, 2014 will be in the range of $0.32 to $0.34 per share. We estimate that net asset value per share as of June 30, 2014 will be in the range of $15.30 to $15.32."

     

    So----The quoted NII of $.39 to $.40 is after incentive compensation. From my reading of the Q1 Investor Presentation, it appears the equivalent Q4'13 and Q1'14 numbers were $.39 and $.35, respectively. I think (Buzz or someone correct me if I'm wrong) that they have will have a net realized and unrealized loss in Q2'14 based on the difference between the quoted NII and the quoted net increase in net assets. From the Q1 Investor Presentation TCPC had a total portfolio effective yield of 10.8%. Based on the above info, that should decrease to 10.7% with the net portfolio growth at lower than average yields.
    28 Jul 2014, 10:39 PM Reply Like
  • BDC Buzz
    , contributor
    Comments (4559) | Send Message
     
    JZ - Yes. Most of that is correct and it does look like realized/unrealized lost of $0.06 to $0.07 and your yield numbers look right. Of course they added at a higher rate than the repays but it was a net add of $81 million at a lower rate than the average so your 10.7% seems about right.

     

    I would call it a good quarter and it will be interesting to see pricing in the morning. Also I would estimate that the new NAV after taking into account the premium to book offering is around $15.54 or 1.4% higher.
    28 Jul 2014, 10:59 PM Reply Like
  • jzmyatt
    , contributor
    Comments (76) | Send Message
     
    Buzz - Thanks new NAV estimate! By way of more luck than skill, I'm currently underweight in TCPC. I'll would love to add more this week to get back to my full holding size at anything near 17.25, especially knowing there is little downside risk to the upcoming earnings report. Plus, given my trust in Management, I assume they made the equity raise with a favorable pipeline of investment opportunities in front of them!
    29 Jul 2014, 12:32 AM Reply Like
  • BDC Buzz
    , contributor
    Comments (4559) | Send Message
     
    The other part of the offering document that you did not post was " Net combined leverage was approximately 0.63 times net equity at June 30, 2014 and approximately 0.69 times net equity at July 24, 2014."

     

    This basically tells us how much the portfolio has grown since TCPC last reported. I came up with $124 million through July 24.
    29 Jul 2014, 12:57 AM Reply Like
  • uncledace
    , contributor
    Comments (141) | Send Message
     
    Just added some more at 17.20 this morning.
    29 Jul 2014, 10:03 AM Reply Like
  • Be Here Now
    , contributor
    Comments (6223) | Send Message
     
    Price almost touched the 50% retracement level today. Volume does not indicate accumulation. If I were looking to buy I would wait for more upside volume.
    29 Jul 2014, 10:48 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs