Seeking Alpha

TCP Capital (TCPC)

  • Tue, Jan. 6, 2:11 PM
    • These income producers might typically enjoy the big run lower in interest rates (the 10-year yield is all the way down to 1.94%), but it's coming alongside a continued plunge in oil (now all the way down to $47.61).
    • Individual names: Fifth Street Finance (FSC -2.1%), Ares Capital (ARCC -1%), FS Investment (FSIC -1.6%), Main Street Capital (MAIN -2.6%), PennantPark Investment (PNNT -3.2%), TCP Capital (TCPC -2.9%), KCAP Financial (KCAP -1.6%).
    • Notably higher for a 2nd straight day is OHA Investment (OHAI +1.9%) after SA Pro's Cahaba Research on Monday morning made the case for buying this busted BDC at a greater than 40% discount to book value.
  • Nov. 21, 2014, 9:11 AM
    | Comment!
  • Nov. 20, 2014, 4:12 PM
    • The underwriter greenshoe is for another 885K shares. TCPC -0.5% after-hours.
    • Source: Press Release
    | Comment!
  • Nov. 6, 2014, 9:24 AM
    • Q3 net investment income of $15.1M or $0.38 per share vs. $14.5M and $0.40 in Q2 (share count grew by 6.2M shares). Dividend is $0.36, plus a special payout for Q4 of $0.05.
    • Net increase in net assets from operations of $11.5M or $0.29 per share vs. $12M and $0.33 in Q2.
    • Net asset value per share of $15.43 up from $15.31.
    • Net acquisitions of $184M vs. $81M last quarter. Weighted average effective yield of debt portfolio of 10.7% flat from Q2.
    • Conference call at 1 ET
    • Previously: TCP Capital EPS in-line, beats on revenue
    • TCPC flat premarket
    | Comment!
  • Nov. 6, 2014, 8:59 AM
    • TCP Capital (NASDAQ:TCPC): Q3 NII of $0.38 in-line.
    • Revenue of $27.19M (+57.3% Y/Y) beats by $0.77M.
    • Press Release
    | Comment!
  • Nov. 6, 2014, 8:58 AM
    • TCP Capital (NASDAQ:TCPC) declares $0.36/share quarterly dividend, in line with previous.
    • Forward yield 8.67%
    • Payable Dec. 31; for shareholders of record Dec. 8; ex-div Dec. 4.
    • Additionally, the board declared special dividend of $0.05/share payable along with quarterly dividend.
    | Comment!
  • Oct. 10, 2014, 4:24 PM
    • "The sector's drawdown is 50% of what occurred in the 2011 euro-crisis without anything like the accompanying conditions," writes a bullish BDC Reporter, noting the sector is lower by about 14% since its February high, and stalwart Ares Capital (ARCC -3.1%) is trading at a discount to book value for the first time in years.
    • Another example is TCP Capital (TCPC -2.5%), down about 15% from a high hit three months ago. The company has paid out a steadily-increasing dividend since going public, current and future earnings are in excess of the payout, the balance sheet was recently strengthened with medium-term debt capital, the average cost of debt is 2.63%. and its investments yield 9.2%. What's not to like?
    • If the current benign business and credit cycle is indeed over, then BDCs have further to fall. If, as BDC Reporter believes, low rates are here to stay for awhile (and even if rates rise the BDC sector should prosper), BDCs are reaching bargain levels.
    • Today's action: Prospect Capital (PSEC -2.9%), Fifth Street Finance (FSC -3.5%), FS Investment (FSIC -3%), Apollo Investment (AINV -2.1%), Triangle Capital (TCAP -1.6%), THL Credit (TCRD -2%), OHA Investment (OHAI -4.2%).
  • Aug. 7, 2014, 11:50 AM
    • Q2 net investment income (after preferred dividends and related incentive income) of $14.5M or $0.40 per share. Dividend is $0.36.
    • Net increase in net assets from operations of $12M or $0.33 per share.
    • Net asset value of $15.31 per share slips one penny from the end of Q1.
    • Net acquisitions of $81M
    • Portfolio size of $894.7M, with debt holdings representing 97% of portfolio. Weighted average effective yield of 10.7%.
    • Conference call at 1 ET
    • Previously: TCP Capital beats by $0.02, beats on investment income
    • TCPC +0.5%
    | Comment!
  • Aug. 7, 2014, 9:38 AM
    • TCP Capital (NASDAQ:TCPC) declares $0.36/share quarterly dividend, in line with previous.
    • Forward yield 8.47%
    • Payable Sept. 30; for shareholders of record Sept. 16; ex-div Sept. 12.
    | Comment!
  • Aug. 7, 2014, 8:59 AM
    • TCP Capital (NASDAQ:TCPC): Q2 NII of $0.40 beats by $0.02.
    • Total Investment Income of $24.6M (+70.0% Y/Y) beats by $1.34M.
    • Press Release
    | Comment!
  • Jul. 29, 2014, 9:43 AM
  • Jul. 28, 2014, 4:54 PM
    • 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%.
    • Source: Press Release
    • TCPC -3.5% AH
  • Jun. 26, 2014, 3:48 PM
  • Jun. 12, 2014, 7:54 AM
    • The $100M in principal amount of 5.25% 5-year notes will be convertible into TCPC common stock based on an initial conversion rate of 50.91 shares for every $1K in principal amount, equivalent to a price of $19.64 per share. Last night's close was $17.41.
    • Source: Press Release
    | Comment!
  • May. 23, 2014, 11:51 AM
    • The May 15 deadline for the SEC to change BDC's fee-reporting standards has come and gone with no action, meaning the sector's stocks will be removed from Russell's indices on June 27. A tick higher in the struggling sector since May 15 suggests maybe investors have discounted the news.
    • Looking for what to buy now, the team at Wells has put together an Adjusted Cash Flow Coverage metric. From Wells: "It is important for investors to discern which BDCs are overly reliant on fee income as a percentage of total revenues, which BDCs are not covering their dividend and which BDCs book meaningful non-cash income such as PIK."
    • The sector adjusted cash flow coverage average is 81%. Among those coming in above: GLAD, HRZN, TCAP, TCPC, HTGC, GBDC, ARCC. Among those below: TPVG, BKCC, PNNT, MCC, FSC. Struggling the most of late, Prospect Capital is pretty close to the sector average at 79%.
    • Full list here
  • May. 23, 2014, 7:36 AM
    • The selloff in BDCs is a buying opportunity, writes BDC reporter, noting the opportunity today to invest in a basket of BDCs (using BDCS as a proxy) at an 11% higher yield than just three months ago. The sector is yielding 43% more than high yield bonds (HYG) and nearly double floating rate loans (BKLN).
    • The higher yield, of course, reflects market concern distributions are set to fall (and BKCC and MCGC cut in Q1), but for the sector as a whole, distributions have been fairly stable over the last three years. Further, a number of players are under-leveraged or in growth phase, and occasionally have realized gains which are paid out as special distributions.
    • Keep this list around, says BDC Reporter, musing on those who may boost payouts over the next year: ACAS, ARCC, ACRE, ACSF, CPTA, FDUS, FSFR, FULL, HCAP, HTGC, MAIN, MVC, TAXI, PSEC, TCPC, TSLX
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Company Description
TCP Capital Corp is an externally managed, closed-end, non-diversified management investment company. Its investment objective is to achieve high total returns through current income and capital appreciation, with an emphasis on principal protection.