BlackRock Capital Investment Corporation Provides Preliminary Estimates of Financial Results for the Fourth Quarter Ended December 31, 2020, Schedules Earnings Release and Conference Call for the Fourth Quarter Results
Select Preliminary Estimated Financial Results for Fourth Quarter Ended
The preliminary estimates below are subject to change as our financial closing procedures are being finalized:
-
Net Asset Value (NAV) estimated to be
$315.0 million , up 2.8% from$306.6 million atSeptember 30, 2020 -
NAV per share estimated to be
$4.23 , down 0.2% from$4.24 atSeptember 30, 2020 , primarily due to increase in total shares outstanding -
Net Investment Income (NII) per share estimated to be
$0.10 -
Net leverage, adjusted for available cash, receivables for investments sold, payables for investments purchased and unamortized debt issuance costs, was estimated to be 0.51x, compared to 0.98x at
September 30, 2020
Select Non-Core and Junior Capital Portfolio Progress Updates during Fourth Quarter Ended
-
BCIC Senior Loan Partners (SLP) sold a majority of its loan portfolio in the fourth quarter. Following this sale, SLP paid off and terminated its credit facility and returned$23.0 million of equity capital to the Company. Its investment portfolio now consists of four first lien loans. The preliminary fair market value (FMV) of the Company’s remaining equity in SLP is$36.2 million as ofDecember 31, 2020 . This investment had a FMV of$65.7 million atSeptember 30, 2020 which was prior to the aforementioned sale. -
In addition to the previously disclosed partial principal repayment of
$77.5 million on the unsecured debt ofGordon Brothers Finance Company (GBFC), the Company received another$9.9 million repayment on this investment during the fourth quarter. This additional payment resulted from the monetization of an equity warrant issued by a prior GBFC portfolio company. The preliminary FMV of the Company’s remaining unsecured debt of GBFC is$22.9 million asDecember 31, 2020 . This investment had an FMV of$121.8 million atSeptember 30, 2020 which was prior to the previously disclosed sale of GBFC’s loan portfolio toCallodine Commercial Finance, Inc. onNovember 3, 2020 . -
Non-core investment in the unsecured debt of
CB-HDT Holdings, Inc. was repaid in full (along with the entire accrued and unpaid PIK interest) during the fourth quarter. This exit resulted in repayment of$9.4 million to the Company. This investment had a FMV of$8.9 million atSeptember 30, 2020 . -
Red Apple (non-core investment) paid down
$6.2 million on its 2nd lien loan to the Company utilizing excess cash on its balance sheet as its financial performance improved significantly during 2020. The preliminary FMV of the remaining 2nd lien investment in Red Apple is$14.8 million as ofDecember 31, 2020 . This investment had a FMV of$17.3 million atSeptember 30, 2020 , which was prior to the aforementioned principal reduction. -
Excluding the above non-core and junior capital activity, net repayments during the fourth quarter were an aggregate of
$7.2 million , including 7 portfolio company exits and the addition of 7 new portfolio companies. At the end of the fourth quarter, the Company had 55 portfolio companies in the aggregate.
Select Portfolio Progress Updates subsequent to Fourth Quarter Ended
-
Investments in the subordinated debt and equity of
First Boston Construction Holdings, LLC were fully repaid subsequent to the end of the fourth quarter resulting in receipt of$38.5 million by the Company. This investment had a FMV of$31.3 million atSeptember 30, 2020 . -
As a result of net portfolio activity subsequent to the fourth quarter, estimated net leverage, adjusted for available cash, receivables for investments sold, payables for investments purchased and unamortized debt issuance costs, further declined to 0.38x as of
January 15, 2021 using preliminary FMV as ofDecember 31, 2020 , where applicable. - The below table highlights the progress towards the Company’s portfolio construction objectives of increasing senior, secured investment with an emphasis on first liens, and reducing exposure to unsecured debt and equity.
Security Type |
As of |
As of |
Senior Secured 1st Lien Debt |
55.0% |
36.5% |
Senior Secured 2nd Lien Debt |
28.6% |
24.9% |
Subordinated/Unsecured Debt2 |
6.4% |
26.6% |
Pref. Equity, Common Equity & Other2 |
10.0% |
12.0% |
Notes
-
Using preliminary FMV as of
December 31, 2020 , where applicable. -
The table below lists the remaining subordinated/unsecured debt and equity/equity-related exposure as of
January 15, 2021 (excluding exposures with a preliminary FMV of less than$0.5 million ) with preliminary FMV as ofDecember 31, 2020 .
|
Industry |
Preliminary FMV
|
Unsecured or Subordinated Debt |
|
|
|
|
22,850,000 |
|
|
5,000,000 |
Total Unsecured or Subordinated Debt |
|
27,850,000 |
Preferred Stock (c) |
|
|
|
Insurance |
5,720,010 |
|
Chemicals |
1,557,200 |
Total Preferred Stock |
|
7,277,210 |
LLC Interests |
|
|
|
|
36,150,259 |
Total LLC Interests |
|
36,150,259 |
Total |
|
71,277,469 |
|
|
|
_______________________________________
-
The investment is on non-accrual status as of
December 31, 2020 and therefore non-income producing. - This investment will have a first lien security interest after the senior tranches are repaid. Interest rate is Libor + 8.50%.
-
Non-income producing equity securities at
December 31, 2020 .
While the accomplishment of several desirable repayments has benefited portfolio construction, the lower portfolio leverage will compress NII in the near term. We expect the NII to grow as proceeds continue to be redeployed into the Company’s core strategy of senior, secured, income generating investments with an emphasis on first lien loans, increasing net leverage from current levels.
The preliminary estimates described in this press release are subject to the completion of our financial closing procedures and are not a comprehensive statement of our financial results for the year ended
The Company does not expect to regularly disclose such interim estimates going forward and will consider the need to do so, if any, on a quarter-by-quarter basis.
Fourth Quarter 2020 Earnings Release and Earnings Call Scheduled
BCIC will report earnings for the fourth quarter 2020 on
Members of the public who are interested in participating in the teleconference should dial, from
Both the teleconference and webcast will be available for replay by
About
The Company's investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in middle-market companies in the form of senior and junior secured and unsecured debt securities and loans, each of which may include an equity component.
Available Information
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