Press Releases

BlackRock Capital Investment Corporation Reports Financial Results for the Quarter and Year Ended December 31, 2016, Declares First Quarter 2017 Distribution of $0.18 Per Share

  • GAAP net investment income of $0.24 per share, or $0.22 per share excluding an insurance reimbursement payment related to a previously announced legal settlement, providing fourth quarter distribution coverage of 112% and 105%, respectively.
  • NAV declined 2.0% to $8.21 per share during the quarter, primarily resulting from net unrealized depreciation on legacy assets
  • Net leverage and total liquidity relatively unchanged quarter-over-quarter, at 0.55x and $261 million, respectively
  • Non-accrual rate declined from 11.1% to 5.4% of our debt investments at amortized cost or from 4.0% to 0.7% at fair market value
March 08, 2017 04:31 PM Eastern Standard Time

NEW YORK--()--BlackRock Capital Investment Corporation (NASDAQ:BKCC) (“BCIC” or the “Company,” “we,” “us” or “our”) announced today that its Board of Directors declared a quarterly distribution of $0.18 per share, payable on April 3, 2017 to stockholders of record as of March 20, 2017. Additionally, BlackRock Advisors, LLC, the Company’s investment adviser, in consultation with the Company’s Board of Directors, has agreed to waive incentive fees based on income from March 7, 2017 to December 31, 2018 or approximately 21 months. The start date of the fee waiver coincides with the change to the fee calculation that was previously approved by stockholders on February 18, 2015.

“Over the past year, the earnings capability of the portfolio has been reduced due to underperformance of certain legacy investments including several oil and gas and oilfield services related investments, leading to inadequate distribution coverage at its prior level. We are committed to creating long-term shareholder value and believe that aligning the distribution with the earnings power of the portfolio will provide our shareholders with more stable and consistent returns. Also, we believe that waiving 100% of the incentive fees based on income for this significant time period will allow us to create immediate shareholder value as we seek to rotate out of the remaining legacy equity positions and reinvest the proceeds into income generating assets,” commented Michael J. Zugay, CEO of BlackRock Capital Investment Corporation.

“Our investment strategy is aimed at dampening volatility in the overall portfolio. As such, our new deployments are focused on (i) 1st lien senior secured investments through BCIC Senior Loan Partners (“Senior Loan Partners”), which was formed in Q2 2016, (ii) Gordon Brothers Finance Company (“GBFC”), wherein the underlying risk to our investment is derived from a diversified pool of primarily first lien, asset-based investments, and (iii) opportunistic junior capital into companies with strong credit profiles backed by strong sponsors and talented management teams. During the fourth quarter of 2016, we continued to ramp up our investment in Senior Loan Partners, which added three first lien loans to its portfolio. Due to timing of repayments and deployments, we did not make net incremental investments into GBFC, but we expect to do so in the future as GBFC continues to execute its business plan. We also added 2nd lien exposure in a new portfolio company as we continue to see junior debt investment opportunities from our sponsor relationships.

“During the quarter, we successfully restructured our investment in Vertellus Specialties Inc. (“Vertellus”), bringing it off non-accrual status and taking down the overall non-accruals in the portfolio. Our team has worked diligently to restructure challenged credits to allow these companies to focus on growth. BCIC continues to have a favorable financial position with moderate net leverage at 0.55x and ample liquidity of $261 million. This provides us the financial flexibility to focus on the remaining challenges in the legacy portfolio and to prudently deploy net new capital.”

Financial Highlights

    Q4 2016   Q3 2016   Q4 2015
    Total   Per   Total   Per   Total   Per
($'s in millions, except per share data)   Amount   Share   Amount   Share   Amount   Share
Net Investment Income/(loss)   $ 17.1     $ 0.24     $ (2.1 )   $ (0.03 )   $ 18.5     $ 0.25  
Net realized and unrealized gains/(losses)   $ (14.6 )   $ (0.20 )   $ (36.9 )   $ (0.51 )   $ (39.0 )   $ (0.53 )
Basic earnings/(loss) per share   $ 2.5     $ 0.03     $ (39.1 )   $ (0.54 )   $ (20.5 )   $ (0.28 )
Distributions declared   $ 15.3     $ 0.21     $ 15.2     $ 0.21     $ 15.6     $ 0.21  
Net Investment Income/(loss), as adjusted1   $ 17.1     $ 0.24     $ (2.1 )   $ (0.03 )   $ 21.7     $ 0.29  

Basic earnings/(loss) per share, as adjusted1

  $ 2.5     $ 0.03     $ (39.1 )   $ (0.54 )   $ (17.3 )   $ (0.23 )
    2016 Totals   2015 Totals
    Total   Per   Total   Per
($'s in millions, except per share data)   Amount   Share   Amount   Share
Net Investment Income/(loss)   $ 54.0     $ 0.74     $ 75.2     $ 1.01  
Net realized and unrealized gains/(losses)   $ (138.3 )   $ (1.90 )   $ (36.6 )   $ (0.49 )
Basic earnings/(loss) per share   $ (84.3 )   $ (1.16 )   $ 38.6     $ 0.52  
Distributions declared   $ 61.0     $ 0.84     $ 62.6     $ 0.84  
Net Investment Income/(loss), as adjusted1   $ 54.0     $ 0.74     $ 72.0     $ 0.97  
Basic earnings/(loss) per share, as adjusted1   $ (84.3 )   $ (1.16 )   $ 35.4     $ 0.48  
    As of   As of   As of
    December 31,   September 30,   December 31,
($'s in millions, except per share data)   2016   2016   2015
Total assets   $ 957.1   $ 971.3   $ 1,148.4
Investment portfolio, at fair market value   $ 931.1   $ 946.6   $ 1,117.0
Debt outstanding   $ 335.7   $ 321.4   $ 362.6
Total net assets   $ 596.3   $ 608.1   $ 753.8
Net asset value per share   $ 8.21   $ 8.38   $ 10.17

Net leverage ratio2

  0.55x   0.55x   0.47x



  Non-GAAP basis financial measure. See Supplemental Information on page 8.
2   Calculated less available cash and receivable for investments sold, plus payable for investments purchased, unamortized debt issuance costs and legal settlement payable, if any.

Business Updates

  • Vertellus, which filed its U.S. operations for Chapter 11 bankruptcy protection on May 31, 2016, emerged from bankruptcy on October 31, 2016. Post-emergence, we own 12.1% of the common equity in addition to cash paying restructured 1st and 2nd lien debt securities.
  • Senior Loan Partners, our joint venture with Windward Investments LLC, made investments into three new portfolio companies during the quarter, bringing committed and outstanding amounts to $55.2 million and $53.7 million, respectively. The three new investments at par are (i) a $9.0 million first lien term loan to Dunn Paper, Inc., a manufacturer and provider of high-performance paper materials in the lightweight food packaging segment, (ii) a $10.0 million first lien term loan to O2 Partners, LLC, a producer of open-cell foam insoles for leading shoe brands and (iii) a $10.0 million first lien term loan to Digital Room LLC, an e-commerce focused B2B printer of a variety of marketing related products.
  • During the quarter, we received a $1.1 million, or $0.02 per share, insurance reimbursement payment connected to our previously disclosed legal settlement relating to the AL Solutions matter.
  • For the year ended December 31, 2016, we repurchased a total of 1.9 million shares of our common stock on the open market for $16.1 million, including brokerage commissions, at an average price of $8.45 per share. There were no share repurchases during the fourth quarter. Since the inception of our share repurchase program through December 31, 2016, we have purchased 4.6 million shares at an average price of $7.98 per share, including brokerage commissions, for a total of $36.3 million. The cumulative repurchases since BlackRock entered into the investment management agreement with the Company totaled approximately 2.8 million shares for $24.0 million, representing 66% of total share repurchase activity, on a dollar basis, since inception. As of December 31, 2016, the Company had approximately 1.2 million additional shares authorized for repurchase.

Portfolio and Investment Activity*
($’s in millions)

    Three months   Three months        
  ended   ended   Year ended   Year ended
  December 31, 2016   December 31, 2015   December 31, 2016   December 31, 2015
Commitments   $ 107.8   $ 98.3   $ 325.4   $ 311.8
Investment exits   $ 109.2   $ 93.4   $ 377.2   $ 417.7
Number of portfolio company investments at the end of period                 38     45
Weighted average yield of debt and income producing equity securities, at fair market value                 11.7%     11.6%
% of Portfolio invested in Secured debt, at fair market value                 66%     74%
% of Portfolio invested in Unsecured debt, at fair market value                 17%     15%
% of Portfolio invested in Equity, at fair market value                 17%     11%
Average investment by portfolio company, at amortized cost (excluding investments below $5.0 million)               $ 31.8   $ 32.5

*balance sheet amounts above are as of period end

  • We invested $107.8 million during the quarter, while sales, repayments and other exits of investments totaled $109.2 million, resulting in a $1.4 million net decrease in our portfolio due to investment activity. Excluding the impact of the Vertellus restructuring, commitments and exits were $58.3 million and $59.7 million, respectively. Nearly 70% of our deployments during the quarter were represented by two portfolio companies: (i) $20.0 million of L + 1,000 second lien debt to Paragon Films, Inc. and (ii) $20.2 million of incremental equity to Senior Loan Partners. Approximately 90% of our proceeds from exits during the quarter were also represented by two transactions: (i) a repayment at par of our $35.1 million investment in BPA Laboratories Inc. and (ii) a $20.0 million reduction in our position in Sur La Table, Inc.
  • Our non-accrual rate further improved compared to the prior three quarters as a result of the aforementioned Vertellus restructuring. As of December 31, 2016, our non-accruals were 0.7% of our total debt investments at fair market value, and 5.4% at amortized cost, compared with 4.0% and 11.1%, respectively, as of the prior quarter-end. Our average internal investment rating at fair market value at year-end was 1.35 as compared to 1.40 as of the prior quarter end.
  • The portion of our portfolio invested in equity securities increased during the quarter to 17% at year end, primarily due to the deployment of $20.2 million of equity capital into Senior Loan Partners. Our portfolio composition of secured debt, at fair market value, decreased to 66% at year end, primarily resulting from the repayment of BPA Laboratories, Inc. during the quarter. Unsecured debt increased to 17% due to net depreciation in our total portfolio resulting in a smaller overall portfolio at fair market value. Total portfolio yield increased 30 basis points sequentially from 11.4% as of last quarter-end to 11.7%, largely a result of the Vertellus restructuring removing the investment from non-accrual status.
  • Net unrealized depreciation decreased $12.5 million during the current quarter, bringing total balance sheet unrealized depreciation to $92.3 million. During the period, gross unrealized depreciation of $17.2 million primarily from legacy assets was partially offset by $3.2 million of gross unrealized appreciation. Further, there was $26.4 million of unrealized appreciation during the quarter due primarily to the reversal of previously recognized unrealized depreciation on the Vertellus restructuring.
  • Fee income earned on capital structuring, prepayments, commitment, administration and amendments during the current quarter totaled $2.6 million, as compared to $0.5 million earned during the preceding quarter, and $1.5 million earned during the prior year quarter. Current quarter investment income also includes a $1.1 million insurance reimbursement received in connection with the previously disclosed AL Solutions legal settlement during the quarter. Excluding fee income and the insurance reimbursement, investment income decreased approximately 5% compared to the prior quarter, and 20% as compared to this quarter one year ago. The decreases were a result of a net reduction in overall income producing assets over the year, as well as certain investments on non-accrual status through the course of 2016.

Fourth Quarter and Full Year Financial Updates

  • Both GAAP net investment income (“NII”), and NII, as adjusted, were $17.1 million, or $0.24 per share, and $54.0 million, or $0.74 per share, respectively, for the three months and year ended December 31, 2016. Relative to 2016 distributions declared of $0.84 per share, our GAAP NII distribution coverage was 89% for the year, and 115% excluding the $16.4 million net expense resulting from the previously disclosed legal settlement, net of the current quarter insurance reimbursement.
  • During the quarter, there was no accrual for incentive management fees based on gains due largely to the net unrealized depreciation in the portfolio as of December 31, 2016. A hypothetical liquidation is performed each quarter end resulting in an additional accrual if the amount is positive or a reversal to the existing accrual if the amount is negative. However, the resulting fee accrual is not due and payable until June 30, if at all. There is currently no balance accrued for incentive management fees based on gains as of the measurement period ending December 31, 2016. Furthermore, no incentive management fees based on income were earned and payable for the quarter, as the distributable income amount was reduced below the hurdle by the net realized and unrealized losses in the portfolio for the trailing four quarter period. As a result, there were no pro-forma incentive management fees based on income for the quarter causing our NII, as adjusted, to equal our GAAP NII of $0.24 per share. We estimate that the waiver of the incentive management fees based on income will add approximately $0.03-$0.04 per share per quarter to NII based on the current earnings run-rate of the Company.
  • Our 2016 weighted average cost of debt decreased 141 basis points to 4.37%, as compared to 2015. This was primarily driven by (i) refinancing our $158 million 6.5% senior secured notes with proceeds from our revolving credit facility and (ii) the subsequent lowering of the interest rate margin on the credit facility pursuant to the amendment and restatement earlier in the year. Our 2016 borrowing costs, on a dollar basis, are more than 30% lower than the prior year, and we realized an annual savings in financing costs of $0.10 per share.
  • Tax characteristics of all 2016 distributions were reported to stockholders on Form 1099 after the end of the calendar year. Our 2016 tax distributions of $0.73 per share were comprised of ordinary income. Our return of capital distributions since inception totaled $1.96 per share. At our discretion, we may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. We will accrue excise tax on estimated undistributed taxable income as required. There was no undistributed taxable income carried forward from 2016. For more information on our GAAP distributions, please refer to the Section 19 Notice that may be posted within the Distribution History section of our website.

Liquidity and Capital Resources

  • At December 31, 2016, we had total liquidity of $260.7 million, consisting of $10.7 million in cash and cash equivalents and $250.0 million of availability under our credit facility, subject to leverage and borrowing base restrictions. The credit facility was amended and extended during the first quarter of 2016 to a February 2021 maturity.
  • Our net leverage, adjusted for available cash, receivables for investments sold, payables for investments purchased and unamortized debt issuance, stood at 0.55x at year-end, and our 275% asset coverage ratio provided the Company with available debt capacity under its asset coverage requirements of $256.3 million. Further, as of quarter-end, 86% of our portfolio was invested in qualifying assets, exceeding the 70% regulatory requirement of a business development company.

Conference Call

BlackRock Capital Investment Corporation will host a webcast/teleconference at 10:00 a.m. (Eastern Time) on Thursday, March 9, 2017, to discuss its fourth quarter 2016 financial results. All interested parties are welcome to participate. You can access the teleconference by dialing, from the United States, (888) 710-3981, or from outside the United States, (913) 312-0934, shortly before 10:00 a.m. and referencing the BlackRock Capital Investment Corporation Conference Call (ID Number 3210745). A live, listen-only webcast will also be available via the investor relations section of Both the teleconference and webcast will be available for replay by 1:00 p.m. on Thursday, March 9, 2017 and ending at 1:00 p.m. on Thursday, March 23, 2017. To access the replay of the teleconference, callers from the United States should dial (888) 203-1112 and callers from outside the United States should dial (719) 457-0820 and enter the Conference ID Number 3210745.

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 investor relations page (


BlackRock Capital Investment Corporation

Consolidated Statements of Assets and Liabilities



December 31,

  December 31,
  2016       2015  
Investments at fair value:      
Non-controlled, non-affiliated investments (cost of $586,176,755 and $876,732,386) $ 512,308,390     $ 826,766,931  
Non-controlled, affiliated investments (cost of $112,640,458 and $62,003,676)   109,342,171       67,163,896  
Controlled investments (cost of $322,768,014 and $214,393,103)   309,472,929       223,065,737  
Total investments at fair value (cost of $1,021,585,227 and $1,153,129,165)   931,123,490       1,116,996,564  
Cash and cash equivalents   10,707,834       12,414,200  
Receivable for investments sold   449,578       1,408,841  
Interest and fees receivable   10,750,723       13,531,749  
Prepaid expenses and other assets   4,035,866       4,040,147  
Total Assets $ 957,067,491     $ 1,148,391,501  
Debt   335,667,906       362,551,503  
Interest payable   3,041,680       7,826,690  
Distributions payable   15,262,010       15,560,829  
Base management fees payable   4,860,614       5,986,455  
Accrued administrative services         219,917  
Other accrued expenses and payables   1,914,912       2,493,492  
Total Liabilities   360,747,122       394,638,886  
Net Assets      
Common stock, par value $.001 per share, 200,000,000 common shares authorized, 77,228,207 and 76,747,083 issued and 72,676,242 and 74,099,182 outstanding   77,228       76,747  
Paid-in capital in excess of par   877,300,709       873,338,049  
Undistributed / (Distributions in excess of) net investment income   (7,965,655 )     (17,112 )
Accumulated net realized loss   (144,527,577 )     (60,922,258 )
Net unrealized (depreciation)   (92,261,515 )     (38,513,195 )
Treasury stock at cost, 4,551,965 and 2,647,901 shares held   (36,302,821 )     (20,209,616 )
Total Net Assets   596,320,369       753,752,615  
Total Liabilities and Net Assets $ 957,067,491     $ 1,148,391,501  
Net Asset Value Per Share $ 8.21     $ 10.17  
  Three months   Three months        
BlackRock Capital Investment Corporation ended   ended   Year ended   Year ended
Consolidated Statements of Operations (Unaudited) December 31, 2016   December 31, 2015   December 31, 2016   December 31, 2015
Investment Income:              
Interest income:              
Non-controlled, non-affiliated investments $ 15,697,518     $ 23,270,640     $ 76,316,526     $ 94,575,801  
Non-controlled, affiliated investments   2,060,394     1,406,271     5,946,132       5,832,038  
Controlled investments   5,406,109     4,146,243     19,794,802       17,902,315  
Total interest income   23,164,021     28,823,154     102,057,460       118,310,154  
Fee income:              
Non-controlled, non-affiliated investments: prepayment fees   16,609     900,718     3,023,253       2,059,868  
Non-controlled, non-affiliated investments: capital structuring fees   776,449         1,854,018       1,127,140  
Non-controlled, non-affiliated investments: other   1,766,455     615,966     2,903,296       2,060,700  
Controlled investments   39,890     25,000     291,640       328,033  
Total fee income   2,599,403     1,541,684     8,072,207       5,575,741  
Dividend income:              
Non-controlled, non-affiliated investments   188,016     195,919     774,235       1,013,960  
Non-controlled, affiliated investments   178,425     411,647     1,869,769       1,633,135  
Controlled investments   790,381     811,102     3,565,984       2,877,617  
Total dividend income   1,156,822     1,418,668     6,209,988       5,524,712  
Other income   1,100,000         1,100,000        
Total investment income   28,020,246     31,783,506     117,439,655       129,410,607  
Base management fees   4,860,615     5,986,455     21,460,909       24,678,087  
Legal settlement           17,500,000        
Incentive management fees                 (3,189,459 )
Interest and credit facility fees   4,020,290     5,904,971     16,661,674       24,290,518  
Professional fees   865,235     355,816     2,544,235       2,081,220  
Administrative services   282,023     219,917     1,333,440       1,614,561  
Director fees   184,750     175,000     706,500       698,500  
Investment advisor expenses   87,504     83,796     350,004       798,139  
Other   637,466     523,142     2,846,328       3,247,998  
Total expenses   10,937,883     13,249,097     63,403,090       54,219,564  
Net Investment Income   17,082,363     18,534,409     54,036,565       75,191,043  
Realized and Unrealized Gain (Loss):              
Net realized gain (loss):              
Non-controlled, non-affiliated investments   (27,049,481 )   2,273,087     (83,048,145 )     28,721,448  
Non-controlled, affiliated investments                 121,381,408  
Controlled investments       (9,260,324 )   (1,532,024 )     (27,845,330 )
Net realized gain (loss)   (27,049,481 )   (6,987,237 )   (84,580,169 )     122,257,526  
Net change in unrealized appreciation (depreciation) on:          
Non-controlled, non-affiliated investments   27,925,028     (38,537,721 )   (25,979,691 )     (66,265,415 )
Non-controlled, affiliated investments   (3,740,774 )   3,198,488     (6,008,885 )     (114,059,303 )
Controlled investments   (11,554,566 )   3,521,361     (21,967,719 )     22,751,536  
Foreign currency translation   (152,457 )   (225,664 )   207,975       (1,250,303 )
Net change in unrealized appreciation (depreciation)   12,477,231     (32,043,536 )   (53,748,320 )     (158,823,485 )
Net realized and unrealized gain (loss)   (14,572,250 )   (39,030,773 )   (138,328,489 )     (36,565,959 )
Net Increase (Decrease) in Net Assets Resulting from Operations $ 2,510,113     $ (20,496,364 )   $ (84,291,924 )   $ 38,625,084  
Net Investment Income (Loss) Per Share              
Basic $ 0.24     $ 0.25     $ 0.74     $ 1.01  
Diluted $ 0.26     $ 0.24     $ 0.74     $ 0.97  
Earnings (Loss) Per Share              
Basic $ 0.03     $ (0.28 )   $ (1.16 )   $ 0.52  
Diluted $ 0.05     $ (0.22 )   $ (1.16 )   $ 0.54  
Average Shares Outstanding              
Basic   72,673,587     74,203,324     72,757,978       74,576,277  
Diluted   82,570,315     84,100,051     72,757,978       84,473,005  
Distributions Declared Per Share $ 0.21     $ 0.21     $ 0.84     $ 0.84  

Supplemental Information

The Company reports its financial results on a 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 management fees based on income as it becomes legally obligated to pay them, based on a hypothetical liquidation at the end of each reporting period. The Company’s obligation to pay incentive management fees with respect to any fiscal quarter is based on a formula that reflects the Company’s results over a trailing four-fiscal quarter period ending with the current fiscal quarter. The Company is legally obligated to pay the amount resulting from the formula less any cash payments of incentive management fees during the prior three quarters. The formula’s requirement to reduce the incentive management fee by amounts paid with respect to such fees in the prior three quarters has caused the Company’s incentive management fee expense to become, and currently is expected to be, concentrated in the fourth quarter of each year. Management believes that reflecting incentive management fees throughout the year, as the related investment income is earned, is an effective measure of the Company’s profitability and financial performance that facilitates comparison of current results with historical results and with those of the Company’s peers. The Company’s “as adjusted” results reflect incentive management fees based on the formula the Company utilizes for each trailing four-fiscal quarter period, with the formula applied to the current quarter’s incremental earnings and without any reduction for incentive management fees paid during the prior three quarters. The resulting amount represents an upper limit of each quarter’s incremental incentive management fees that the Company may become legally obligated to pay at the end of the year. Prior year amounts are estimated in the same manner. These estimates represent upper limits because, in any calendar year, subsequent quarters’ investment underperformance could reduce the incentive management fees payable by the Company with respect to prior quarters’ operating results. Similarly, the Company records its liability for incentive management fees based on capital gains by performing a hypothetical liquidation at the end of each reporting period. The accrual of this hypothetical capital gains incentive management fee is required by GAAP, but it should be noted that a fee so calculated and accrued is not due and payable until the end of the measurement period, or every June 30. The incremental incentive management fees disclosed for a given period are not necessarily indicative of actual full year results. Changes in the economic environment, financial markets and other parameters used in determining such estimates could cause actual results to differ and such differences could be material. For a more detailed description of the Company’s incentive management fee, please refer to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, on file with the Securities and Exchange Commission ("SEC").

Computations for the periods below are derived from the Company's financial statements as follows:


Three months

December 31, 2016


Three months

December 31, 2015


Year ended
December 31, 2016


Year ended
December 31, 2015

GAAP Basis:                
Net Investment Income/(Loss)   $ 17,082,363   $ 18,534,409   $ 54,036,565   $ 75,191,043
Net Investment Income/(Loss) per share     0.24     0.25     0.74     1.01
Addback: GAAP incentive management fee expense based on Gains                 (3,200,520)
Addback: GAAP incentive management fee expense based on Income                 11,061
Pre-Incentive Fee1:                
Net Investment Income/(Loss)   $ 17,082,363   $ 18,534,409   $ 54,036,565   $ 72,001,584
Net Investment Income/(Loss) per share     0.24     0.25     0.74     0.97
Less: Incremental incentive management fee expense based on Income         (3,169,395)         11,061
As Adjusted2:                
Net Investment Income/(Loss)   $ 17,082,363   $ 21,703,804   $ 54,036,565   $ 71,990,523
Net Investment Income/(Loss) per share     0.24     0.29     0.74     0. 97



Pre-Incentive Fee: Amounts are adjusted to remove all incentive management fees. Such fees are calculated but not necessarily due and payable at this time.




As Adjusted: Amounts are adjusted to remove the incentive management fee expense based on gains, as required by GAAP, and to include only the incremental incentive management fee expense based on Income. The incremental incentive management fee is calculated based on the current quarter's incremental earnings, and without any reduction for incentive management fees paid during the prior calendar quarters. Amounts reflect the Company's ongoing operating results and reflect the Company's financial performance over time.


About BlackRock Capital Investment Corporation

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. 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, and by making direct preferred, common and other equity investments in such companies.

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, 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.

BlackRock Capital Investment Corporation’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC identifies 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 The information contained on our website is not a part of this press release.



BlackRock Capital Investment Corporation
Nik Singhal, 212-810-5427
Brian Beades, 212-810-5596