BlackRock TCP Capital (TCPC) 28 Feb 192018 Q4 Earnings call transcript

Ladies and gentlemen, good afternoon. Welcome everyone to the BlackRock TCP Capital Corp. Fourth Quarter and Full-Year 2018 Earnings Conference Call. Today's conference call is being recorded for replay purposes.

During the presentation, all participants will be in a listen-only mode. I'd Director turn Capital of now, to call Corp. And McGlynn, Katie the Instructions] like the to over [Operator BlackRock TCP Global team. Investor Relations proceed. please Katie,

Thank you, Candice.

we not of management call the time this based Before statements the future at note and performance. such forward-looking are on assumptions contain of statements conference and estimates of I'll begin, guarantees may that

today actual statement Forward-looking XX, statements made and Any materially forward-looking made from without morning, this differ subject notice. as involve full-year-ended for risks earnings we are of fourth results and change to issued December those could quarter and uncertainties, press are on and the call This XXXX. projected. release our

presentation click Events & We Relations Howard refer we the Levkowitz. site our select will Web To on link to on and will presentation, CEO, I also call supplemental Chairman at call, today's the over which posted our to earnings Investor please to turn now view a Presentations. tcpcapital.com. the slide and

Katie. comments, you, overview of to for I XXXX, an some your results. will TCPC with I'm review Paul we call begin CFO, remarks key the provide Paul's will our and Thank accomplishments our opening on our our and After call participating for our thank I Davis, today. everyone will here with then closing financial team, before questions.

investor fee management commitment and incentive fee regulatory this value leverage year structure, to As increase voted summarized we create and on our shareholders. X% month, as with our lowered provides in limitation. XX.X%. our TCPC, for than maintaining assets fee and operating active with continually to on This to change additional TCPC the XXXX of we for overwhelmingly financed in our an slide an our leverage to [indiscernible], line for four Earlier with to Along was approve lowered look with opportunities our friendly regulatory presentation, greater an shareholders this flexibility.

the hurdle hurdle rate our while to total maintained lowering cumulative also We return X%.

ratio. pleased initiated adopted were investment grade only us rating our BDCs after from rating grade we our Moody's Moody's of we in funding of maintain cost investment with also S&P is investing, that affirmed our making record long-term investment credit private rating are coverage an one TCPC, of an few a we Second, strong sources asset ensures modified the track and affirmation and well-positioned both and This financing. grade to for S&P. diverse low

shareholder-friendly facility with last in by refinanced and Third, February to date and facility, on interest at terms. we TCPC ING extending renegotiated funding in on basis XXXX. XX we continue debt the reducing a the plus this year, new LIBOR to X.XX%. seek our facility the mature rate terms credit SVCP of financing effort, we And attractive Toward points, our June,

a X, subsidiary with successfully August on merged BlackRock. advisor our Finally, of

the benefit As to a ability and scale enhanced greater an our resources from shareholders source result, available including to TCPC advisor, transactions.

administration We capabilities ratio, of lowering technological to new access to gained the transaction. also committed part and the as expense

to I'd highlights comments market a few the to moving Before the on on quarter, environment. like from fourth make

The leverage was X%. quarterly similar there nearly XXXX. Credit since market asset the yield fall aware, quarter. nearly fell volatility are experienced lost XXX as As biggest significant fell and and its across in NASDAQ you volatility markets XX%, the indices high traded S&P classes XX%, loan

XX. on decline strong, reflected valuations the evaluation the used process the loans and comprehensive and year-end of of market disciplined and underlying was XXXX less performance While September was we middle since occurred across XX in pronounced, classes volatility that impact credit the asset third-party have the between our portfolio December

than the the saw $XX.XX market quarter. markdowns XX% fourth disruption fourth with quarter, in from in the declined we NAV the of Our resulting more to $XX.XX from

markdown previously from Our was realized loss positions.

worth remembering can it's for Although a in this present when fundamental also market extended, mark-to-market these long-term portfolio, in investment that dislocation periods investors existing more can short-term credit they our create while BlackRock January, TCP. opportunities volatility reversed quickly like

Now, per six, $XXX million, earned XX the of delivered share dividend quarters. $X.XX million income and extending in covering the record the quarter fourth today We investment slide resulting March level quarter. shown quarter, XX to repayment out-earning we we highlights to of and $XXX quarter, $X.XX accomplished despite acquisitions solutions. a of the per of on net on sought financing first share net existing of were $X.XX in originations, strong new as income and our was payable shareholders from low dividend to relatively our our totaling record expertise, This investment by of as March income and in net XX. fourth consecutive And $XX Dispositions industry borrowers quarter declared a dividend flexible as tailored million. of of another on quarter our a in

our XXXX for disciplined approach. year Although investment an maintained was originations, we active

opportunities a investment execute fraction We of of deals. that small review to a number continue those significant only

Turning to seven, market investments on quarter-end, of held in companies across of XX of billion, a in portfolio wide had $X.X debt. value portfolio which fair variety at a We our XX% was industries. investment slide our senior secured

five largest represented X.X% only of represented and the position largest together, of Our positions the only portfolio. taken portfolio, XX.X% our

portfolio see side distributed can a a recurring income in in across on is the of set diverse left you slide companies. the chart As seven,

are portfolio We income reliant not company. from on one any

In fact, to less portfolio our over of company individual companies than our on an X% half contribute income. recurring basis,

as were years, eight. debt last benefit our floating over of we from to rate Additionally, have a portfolio At slide environment. several rising on rate our positioned XX% demonstrated the investments quarter-end,

our have fixed to further primarily portfolio liabilities. by efforts our position enhanced rate been successful Our

capacity our facility the $XXX million, SVCP by $XX bringing we Finally, to capacity the total million. increased of

quarter, deliver investment in opportunities important and reflect all to in of senior we new As existing in to and source on notes. investments and I companies portfolio relationships be seven investments million borrower included secured companies. noted Follow These in portfolio was $XXX we our them. earlier, deployed the continue companies fourth strong loans the value which existing of and substantially an seven

or We expertise solid investments on set protection. underwriter, focus the our also and creditor with are co-lead to leveraging lead allowing we terms deal us continue industry to underwriting where

certify PSEB multi-channel events performed that top in fourth time marketing to and Our provider; commitment and $XX top maintaining quarter, software a $XX a $XX loan senior of global at solutions. a long management well, diversified loan They secured support loan secured to time which evidence secured result solutions include asset the refinanced million the a million million senior an management expense its live to capital provider mobile for broadcast has senior the portfolio a claims structure. structure; $XX existing capital LLC, refinancing enterprise senior senior to and provider a long of and our NEP and five a as Group, lending a $XX InMobi borrower million is provider backed borrower multi-branded, loan loan of a and retailer, to risk to a cloud-based our solution and a secured a investments and a borrower safety Amteck platforms million of secured a

million. a in Dispositions were included NEP exposure software, $XX a social real of quarter investments services, of to mentioned including with in the $XX marketing, above, estate. loan to provide variety $XXX million group other media, and These loan of to the associated business our a fourth Gladstone. our Our fourth the industries, and loan payoff Sentinel, $XX million payoff a payoff million refinancing to of our quarter

at average of sources, the weighted during quarter of of other has strong yield and investments the deal companies a overall yield end effective portfolio quarter XX.X% TCP in The performance, average investments we relationships New XX.X%. function weighted quarter of long-term had on effective sees been had debt a exit was a portfolio our yield and our the with consistent XX.X%. constituents.

knowledge portfolio. approach and our industry sourcing to and deep managing underwriting Our disciplined our

in As since shown $X.XX the our period. Index same XX And over demonstrated by nine, share Fargo slide outperformed slide on IPO TCPC returned have XX% has XXXX. as per Wells the BDC dividends on our

years in lending. the backdrop substantially direct and capital direct upon few of enhances XX Against being seen largest many lending middle in year investment our we market. this source track TCP's into past successful entrants manager have world's greatly asset to deals the opportunities part the ability new record and global more seeking build Over

the will financial our discuss Paul? I'll results. over turn who call to Paul Now

regular of Starting we per year-end. share, at $X.XX an discount recurring This slide by of income $X.XX share Howard, cumulative quarter both dividend XX, every out-earned per on of and hello amortization recurring net of or from $X.XX $X.XX $X.XX was aggregate exceeding of basis, prepayment which dividend cash our income. $X.XX prepayment since Over generated this dividends investment interest $X.XX went on fee substantially we $X.XX, everyone. Thanks, of our net the total the substantially per covering our of fourth for and includes outstanding and period, the share out-earning quarter share. and income seven-year income share pick This our was fourth nearly dividend $X.XX was annual investment per year. fees well OID. including as on million in per as unamortized based basis, extends our a income recurring public. we've all record income an interest shares for $XX quarter Investment On

$X.XX the share all over follows investment and the investment included investment share our were of made. recognition of income and economics expenses share recognizing $X.XX $X.XX other life net for per $X.XX amortizing for compensation per upfront per share. per debt than policy at the generally of quarter incentive an Our fourth interest time Operating conservative of is of expenses the of rather and income it

X.X% our X%. fee earlier incentive than on our of connection reductions during approved of our from in during as of in noted day reduction reduced reducing the earnings been Howard the using this our a from and incentive February our the to primarily These management X, noted. became reducing cumulative additional $X.XX. to effective leverage our quarter with net financed markdowns mark-to-mark rate income X% one-to-one quarter, producing adjustments $XX.X investment the Howard XX% Net rate the XX.X% to year-end hurdle Had volatility vote. from fees fourth the net to from impact X% fee have more As been came effect month rate assets would on million fee following to shareholders

process traded factored and market from valuation price tends the Although from and in movements our non-traded sets. the to be consistent our markets more middle-market comp this disciplined insulated volatility,

sale Real realized Mex been in on came from already investment of an quarters. primarily position Our net marked which had IPO our our basis situations $XX before special prior from million loss unrealized the legacy of down

remains year-end. debt investments at Our quality strong with of on non-accrual credit none our

with closed Turning of total and of $XXX leverage available XX, includes net liquidity to This $XX we now the million. slide million. million of year $XXX.X cash

SBA which leverage vote basis to our by facility on lending credit at credit February is quarter, rates issuances, fee we to X.XX effect includes X. month, million additional reduce fourth expanding went at an this our to Regulatory capacity of on the XXX% and outstanding times cash our revolving equity reduction of X.XX $XXX from on connection two shareholders also of convertible draws program our facilities, During net million the and our the common ratio coverage program SBIC approved further year-end cost diverse at a note unsecured million, the which $XX $XX increased minimum which and a also debt straight million their XXX% net issuance trades. gross asset end year. earlier into SVCP program. two Outstanding In times $XXX of of SBA was an remained low with note

grade leverage. repurchase the Making made to quarter turn back rated a algorithm share to requirement have As program. prudent After also only of X:X leverage investment considering and our our trading Poor's this we over we with at based now result, in With NAV investment one during of grade the & stock our Moody's additional reaffirmed coverage rating. investment repurchases amendment the initiated I'll the share a modest coverage TCPC our flexibility Standard increase environment. asset to investment modestly rating during grade Howard. three small discount be with an us to call our now it should BDCs quarter under

company XXXX Thanks, the investment current of Paul. idiosyncratic for year several negative We of with believe environment industry for are our well-positioned of categories. we we in and this patient almost shifts importance all major was reasons. of investment reminded are investment approach. the a disciplined volatility asset performance In environment

is sources cycles experience plus deal XX several advantage as attracting borrowers of For as in years which market spans a risk. managing well and key

Additionally, ability our gives robust and the to opportunities. unique platform attractive us source investment

approach selective enhanced supporting our Joining the our BlackRock platform deal has to flow underwriting. further

the of that monitoring due of TCPC co-lead terms relationship a TCP's BlackRock and structuring, borrowers process is investments. we or part active on deal direct majority with The team As the this aligned an in source deep leader shareholders. And monitor loans ensure the finally experience over and experience to deal help downside structure role life underwrite TCP of we structured protect investments so both the the and form and establishing to protected. to Blackrock this distress that in member we its are take diligence, is interests use performing team and has deals we team investment. an structure credit are

yield on investors thank to funded primarily risk with focused investments Looking with loan leverage would to protection. this like the for shareholders we our morning, these combined [enforce] capital senior please the pursue to of forward, platform date that continue attractive In investment approximately all questions. superior we relentlessly risk preserving first approximately operator, and downside we And remain loans. secured your confidence continued effect generating is for have opportunities. we of closing, million while returns $XXX quarter In The a of open for our your to mitigated our including support. adjusted invested We XX.X%. call

question you. from And Kotowski Chris Oppenheimer. of comes our [Operator Thank first Instructions]

is line open. now Your

seemed all Yes, fee row the utilized. XX% would in I being could dividend philosophically, in that good the do the and just about underutilized, fairly -- a times keep XX is the earnings push and yield less and but increase how is philosophy a increase is that is up that think it just afternoon. be and And in a to incentive to or guess risk? equal, else XX+ the quarter up reduction your leverage you I dividend conceivably all place the generating guess, room and drive dividend, be, and light a there that? bucket good percent in Philosophically, I need base earnings with between quarter earnings, should of darn and to covering guess in straightforward, no

think basis Chris, we end about. something Having sensible. we thanks that Starting on and attractive thinking you spot in question. to did with your the an for of yield was all low are a statement question, absolute level the basis. all an environment said The is we math It's think risk-adjusted investors the your is yield of that, of on. very absolute

increase to we've very us shareholders and dividend aware, without been give earning just you're As our voted comfortably our overwhelmingly to that. the ability leverage,

So forward. assess we continue our board talk as about will we to our dividend going policy

the I kind Okay. other mainly they closed just secondarily outlook, are really tone, October December a remember these or market in you you've with impacted cannot didn't mean, the closed -- and honestly on is at a function And if guess, in December of what borrowers? working your And trend weeks, general, that of the did had. sponsors kind influence were and change dealings that we what it or in in wondering just I on I'm I November have of December transactions were you've one -- like all, an on and the by quite recent pricing

differentiated, marginally, and Raj, it on characterize important and in of but that and to stick the but to defensive it's a sticking one. our I being it I that to bit margin, are things things interesting, more always -- At with -- little we've our terms, I fundamental a know, Chris, in wouldn't knitting bit finite change was them take think to in certain agree stick defending guns the us. very you, Hi, change taken improving approach December probably said, long-lasting quick the market, that an the as scheme you but maybe -- a of helped a period. I'll to

that. helped believe. I obviously that the wouldn't than a I of it quick a margin, more it at but QX, reversal read So it flow will was on through into And reasonably number things

you. thank from it That's Okay. me,

And Robert Raymond you. Thank Dodd next comes our from of James. question

open. is now line Your

follow-up that Hi quick guys, one. one to

that the here characterize values in range markdown mean, of much of experience any NAV give anywhere reversal we at today, as from would that happened mix QX, look how would is the can you I of two-thirds, your XX% in kind opinion rough On us of of you obviously, the reversal? what where to back portfolio a you if color, kind referred

Yes, we've basis, at regular lot continue, can there's seen to been is all other for don't our time. not thing on a same substantial going snapback. absolute as two the flow is marks and We're is over. And give reasons. through number through on One an yet a prices quarter a very the they although of not we flow volatility the

would noticeable that it not numbers and a our volume. little The to market and was -- simply if very we on transacting and on comparables, low sure like liquid but accurate. of that out a saying disclosure we down dramatic of on bit completely the any level, a directionally, I actually and make absolutely or book in very be certainly cases you're were consistent. has function some in mixed spreads that securities is moving snapback markdowns, lot and think give that anything it no But based and at we matched So been whenever did what is

it. it, Got got Appreciate that.

could down. amounts quarter, It prior even versus fee be prepaid of line was volatile, lower the and year. kind On this realize hard we've the slightly I down to it's but it obviously really seen nail

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a to color try there. I'll give Yes, little

to company think overarching I it's as point, it's by episodic always a level. company hard predict been the at

I that might've the monetize were an prepaid, element case think been is there think falling when be a a to our that the flipside people to good of rates I or were bit but driving able a of that's thing. precisions are I seeing we little longer, think, higher

of element preference -- generating you think also opportunities ask performing, itself sake good that's existing the something income, its company to that's well. the trade to a or know, a dynamic, a case. of and you I longer have change actually for portfolio something one the if I payment, your me in as structural a own you'd But know, one-off and companies a of is see think of that's know you investing stream an ability answer from that question you don't I that's where think the the will

nature just of these think I it's the companies.

Some efficient a type up segment out of maybe market. this of and grow capital grow into more will

the Some in to business, will prepayment sale a a it's or predict it portfolio the organic that change than dynamics other have but have event of -- those, that drives always but I wouldn't very structural an and an like call existed. the hard any

more appreciate in -- is and record. you -- I I if it. originate on the that to give bring on businesses? the particularly exactly The own table middle expertise loans, historic fourth commercial smaller can JV, your your market, kind emphasized for is of public track to historically, more what I records, you're with truly business, obviously business, can it's call, on if bring focused wouldn't you got really on and originating call it, to any guys record table? doing controlling mean, which small in this Howard, with small do given loans formed it and and you the businesses, Got you your small JV that. color middle one JV it And this With us then I quarter, a track know, Newtek, what So purpose you originations. what you market

as Sure. just Yes, say that it's well. early so one would try I'll days. I

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appreciate Thank Got it, you. it. Okay.

comes our Fin Wells O'Shea Thank question and of next Fargo. from you,

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to larger -- then have one converts start stage the the sets I'm you and this within small XXX that year, my Hi private so you you bit if hand It we on about context note for a due have this I debentures split, or funding drive historically on any can taking looks a for change what's to question higher perhaps expect some so of family you on like pretty me, in diverse if to question. know a there perhaps guys, you're correct and profile a a you bring the profile. leverage, change richer up give good revolver the been afternoon, credit unsecured going available, wrong which perhaps XXX facility can mold thanks other will if going notes us for the would forward?

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great we Moody's, S&P having that look grade additional process double same and from at as going And have, have so, the ability leverage is which to we And the on sheet the balance about we of the more X.XX we now leverage have plan and commitments we now on aggregate take balance sheet. currently got the assets benefit pursue ability we a more investment billion, our or the have to we've rate of and forward. ratings

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felt right. color. earlier you very aware markets the many what never through of of. it was you Can thanks perhaps that means a can and episode It acute, perhaps other question of the how at was Can this That's our I'm same give And in market then what being you all kind us going of this sharp your for disruption All for private changes higher-level view terms. posture market. the your give on your view despite us another a comments so very it view that Sure, whole you acute, was year global went in like aggressive think just give on credit? the on that transactions forward? us kind happened appreciating

go given of year-end highlighting and the you're to and a have people you traded can their the as that change the their this those think can right amount want, nearly all at back go and when during 'XX, as but the sell-off and recent speed highlighting markets it pulled you've guess and it conclusions and but they sell-off were market off concerned ending people getting back view why Historically, on I are Having didn't 'XX, markets who deck noise question and the didn't the in providers seem fascinating we with to on when people I thought been way say people in time markets, you terms. markets have that long-term back of can it more debt more not they seen the traded you much in we we is ignore you're issue. certainly market the several bothered traded world I adjusting because markets the there. get one that and terms like in 'XX, rightfully I change simply who did think the the better your there So by snap and locked sure more keep in there's in the 'XX, traded have XXXX today, reach you and with terms having can we the aren't period said was take looks you is private private of think whatever movement the what's or same in ceiling but on tracked going times long-term like markets, into that fall the take much account, also up it in flexibility assessing liquidity constantly the what's don't all value to if terms is in proceeding have because always truly pride that that, capital the going their a to we

and deals the You we diligence ourselves that's were and we documentation, but advantages things lose cheaper. asking going a beginning of the at and year. some into are question were really And pricing year-end as

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you. Thank

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Hi, taking for Howard. my Thanks questions.

an mentioned valuable for to the or syndicated environment the relatively you get certainty obviously that lot closes going creating sponsor where to top in vehicle itself relationships. more many on -- sponsor market, your relationships more volatility I've just sponsors different BlackRock is is of advisor your and this a far and had the you given also you But and merged curious of be scale BlackRock expect allow opportunities augmenting that and the getting with BlackRock Just another to same? do

one. that I'll try

think, it's was absolutely business think the us have certainty within a that fundamentally something relationships certainty points quickly -- we the the for in and exist think value from, that, or I and case broader point to continues it's to always market a situation. what that the closes been does the think outsourcing close ability lead to track and understand to I we a and I with I of ability approach context credibility record the stem an from, BlackRock of certainly and of team. Certainly, it's

audience, been demonstrate doing benefits, broader it'd which we've early signs platform. story that some to think I and can what a be of across give the with we

was platform message, and timing things sourcing a lived, other point, that like add like, the continue even your to that was among the absolutely prior today bit But defined of existing and the QX value short with TCP new define So, platform is to legacy though it context. to a close things certainty a

of are of syndicated those have and volatility participants you say or that, some it come we they're before it with of bout in deals the along may not you're it some have you different obviously to about more done from would done getting past Got not yet volatility calls you of sustained market? very who thinking more in in see sponsors syndicated scared the that the market short the or the hung you have you will need that syndicated because to seeing otherwise market given business had lines the may

Well, it's of combination some those.

done to-date, have to would didn't we able the was are of TCPC, hung appropriate of stability. outside been benefit asset think kind these given of in some what things for the So at we the look just but from we've deals, TCPC we

a platform, waited take market a are helpful think was than I where counterparty. too And a think it's and there's part TCPC can think track also have to is little part I having for another to to by certainly to bit able did something impact before we are cross so positioning. do our this that of price BlackRock, TCPC, acquisition for can volatile There's kinds a asset manager as of it there's seeing of we're I paying grow markets. helpful over it's is happen, been looking being they interested us a being question funding us solution no TCP are new situation, real needs the to things and us, their us and it's of the value largest with is borrower for the what known group really businesses. again, doing long-term volatility for now part that, people greater think in there capital, more said as that being their originate wanting And a realizing this dislocation. of now borrowers And the that that it, long record. in People world's of And a advantage you. the public waited a long-term a with and also who it seen we've having having outside with, involved manager, relationship I that business long-term of

basically companies on Got incumbent are you to expecting borrowers expanding that's more and source, great fewer guess And incumbent BlackRock's just looking at color, as ability. be new keep your it, you I okay, then Howard. borrowers, maybe, ability you

of incumbent nice We record have a renewing borrowers. very

the half those note highlighted when financings our of will you and have InMobi, at follow-on we NEP, borrowers. disclosures to doing Ventiv, about we our look -- been you then existing our deals If larger during also investors to talked and and this we've existing investments been quarter, that all were

three existing out So, were doing of with the borrowers. were large we five that these deals

going of expect to that So us a continue forward. I have balance would to

I be you given leverage itself all how wondering that more JV economic for Robert, JV and factors about think appreciated one-to-one new the leverage and And potentially just I idea also above Got NCU if color is increase gave going just, tech wall? might the an how to have big your to may it. going on you that you if one on, JV

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want we're that I versus implied quote is don't to certain size economics. that So, targeting something

In leverage JV terms the the essentially those will leverage, the at the be, of JV on level. are

I JV. in So, level very at be of leverage equity portion necessary for leverage it the balance TCPC will the right the changes versus and consistently profile it sheet. know of build in our don't the that context that of us, keeping

than of sheet. a big become terms if of we Okay, economic leverage is then because does two portfolio. leverage, balance obviously and I if take on shown what's terms in higher now. asking a the standard of that was Obviously, JV Yes, went you part your

just guys was that? of on getting how about So I the you think out kind math

is to thing how are other which approach Today one think our management, we think none case positions. I the about historically. portfolio And risk of Yes, is, been is just very that's large.

don't portfolio, cautious too get saying anyone as a was on getting of it big. target constructing as this letting part about sort thing. of we Raj we're very So about But our have think we

it. Got

one just a the [indiscernible] market Okay. And, would comment, being not of a appropriately best to book widening. question; congrats actually spread on

and So appreciate I time appreciate your today. that

Thank questions, you. the Chris. for And thanks

comes our from Thank of Brown Zazove Associates. you. And next question Nick

now open. is line Your

have I questions Hi, actually. two just

loans what explain can you than at was just seemed a was sequential this surprised, I quarter? off? income new little like decline the you First, paid and getting interest given rate a you higher were that originating

result in Primarily the of quarter. just prepayment decrease a income compared to prior

question then, other is that Okay, of a And makes clarification a sense. I the question. have really

I that think the question was asked. first

As profitability you the on NII that expect actually share, would that and so should your are generating dividends? portfolio reflected be to your we're incremental in increased grew will pay wouldn't you we would per extent -- -- higher you of far and saying that? more you Or as -- income taxes that retain you

policy our basis today connection a is dividend quarterly Our set with in on board.

an So dividend. recall you've you may we raised time, long investor for that a been the have

special have We done dividends.

our important as continue its to reflect analyze may they covering and our left we well change that have time to with coverage environment views the with at it balance thought very of time, very will continue discussions level to board We period of But I we the adequate with other constituents what and for reassess current do policy. have think wanting of dividend. our and and rate quarters our comfortable income a statement to consecutive XX considerable the due dividend sheet low was over a feel people yield which

dividends to, that that? to paying income pay have to you out and then not on I you more got But generating income the extent you would assume taxes, to did in pay that you as would were have you

there Yes, excise small is a tax. Correct.

year-end. At

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your and in their confidence this some picking at and explain if you up point potentially could and So look levels then then differing Edmentum purchasing views don't potentially value the you of you issue outlook on maybe at do why Edmentum shareholders? have is for position for reason the or the

Yes, good try those I'll questions. to answer comprehensively. And

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comes maximize. will The that will down a think fair and But is and comes getting beyond essentially components. component income the are residual majority we've cash components as but those value exact don't breakup have There of that that are an look could is position. reduce it that breakout against will out components that earnings the we that, to disclosed I the some

Sure. That's helpful.

understand you investors to fair trying as is know that there value? Just

Yes, understood.

Okay, great. That's guys. it from me. Thanks,

remarks. question-and-answer you. Thank And like any that for I'd Howard over Levkowitz concludes to turn our conference closing to session. back the

your We thank like concludes joining today. experienced, Thanks professionals again BlackRock This for questions and us. appreciate and our of talented at call. Capital our to team dedicated TCP today's dialog Corp. I'd

the in Ladies participating and This gentlemen, today's thank you conference. concludes for program.

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