BlackRock TCP Capital Corp. Reports Strong Q1 Financial Results and Announces Dividend Increase and Stock Buyback Plan
Dividends
May 5, 2023
May 4, 2023
BlackRock TCP Capital Corp. (TCPC), a leading business development company, has released its financial results for the first quarter ended March 31, 2023. The company reported impressive net investment income and a strong portfolio performance. In addition, TCPC's board of directors has approved a dividend increase and a stock buyback plan, reflecting their commitment to delivering value to shareholders.
TCPC's net investment income for Q1 2023 exceeded the dividend paid, indicating a solid financial performance. The net asset value per share also showed a slight increase compared to the previous quarter. The rise in investment income was primarily driven by the increase in base rates and wider spreads. Fitch, a leading credit rating agency, reaffirmed TCPC's investment-grade rating with a stable outlook during the first quarter.
On May 4, 2023, TCPC's board of directors declared a second quarter dividend of $0.34 per share, reflecting a 6.3% increase from the previous quarter. The dividend is payable on June 30, 2023, to stockholders of record as of June 16, 2023. This dividend increase is a testament to the company's strong portfolio and sustainable earnings.
In line with its commitment to delivering value to shareholders, TCPC's board of directors re-approved a stock repurchase plan on April 25, 2023. The plan allows the company to acquire up to $50.0 million in aggregate of its common stock. The stock repurchases will be made at prices below the net asset value per share, following the guidelines specified in Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934. This buyback plan demonstrates TCPC's confidence in its future prospects and its dedication to optimizing shareholder returns.
As of March 31, 2023, TCPC's investment portfolio consisted of debt and equity positions in 143 portfolio companies, with a total fair value of approximately $1.7 billion. The credit quality of the portfolio remained strong, with only two portfolio companies on non-accrual status, representing a small percentage of the overall portfolio. The majority of the investments were senior secured debt, providing stability and consistent returns.
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