BlackRock TCP Capital (TCPC) 12 May 202020 Q1 Earnings call transcript

Ladies and gentlemen, good afternoon. Welcome, everyone, to BlackRock TCP Capital Corp.'s First Quarter 2020 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. A question-and-answer session will follow the company's formal remarks. Instructions] [Operator

would of the Global BlackRock team. please I Katie over Investor to Katie, Director McGlynn, TCP proceed. like now call turn to, Relations And Capital Corp.

Shannon. you, Thank

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

call and materially statements involve risks change uncertainties made this from made projected. statements results to differ and today Forward-looking could of forward-looking those Any on subject and are as actual are notice. without

issued earnings we morning, the This XX, our third March quarter ended for XXXX. release

call, We which morning. be and reviewed to Presentations. Company's slide please our the should also Investor view select presentation Form the These XX-Q, will the documents with supplemental SEC presentation, To posted filed earnings website which Events at today's refer & click in Relations a this on link with the tcpcapital.com. we was conjunction on to

will call I Levkowitz. CEO, over Chairman and now to Howard our the turn

Katie. you, Thank

TCPC with foremost, President is COO, There safe. taking on Raj staying for and you participate healthy time CFO and of we call our Davis. everyone to Thank members the our several Paul the the call our hope are me, on today. including and First team that Vig and

and position, provide liquidity. portfolio results our financial current Paul, will in I activity. will will and review start first a our with well then on capital a quarter detailed of how on our environment. our I the our and an few is operating as comments then and financial team performance on, provide comments update as

been remotely. to outlook, we the some provide current a procedures. been on we the the that Paul's operational start has as of team health pandemic. environment call firm-wide pleased has and The I our the before implemented our After questions. fully team And to are safety and comments our comments, closing opening since your business BlackRock work early of In March, continuity report, priority, will

securely us allowed BlackRock's robust interruption. work platform has to home, from without technology

been also evolving and environment, the resources of platform insights have industries We extensive asset to leveraging classes. on gain the the across BlackRock

Our team to multiple process for analysis. and through our market incorporates cycles XX companies been over years, lending downside underwriting market middle risk has

is team the Our investments. same members also underwrite investments industry situations TCPC, manage aligned underwrite direct team by and and for who special lending

of is As It current well a are our the including result, unique members of mobility, navigate prepared, however, challenging world. on have all is its working situations situation. experience in broad the limitations crisis across team the to COVID-XX activity the nature impact, clear through that and and economic significant

throughout closely serve businesses vital detailed companies reviews economy. of help stakeholders sustain market be our And our entire their affected. a caused borrowers work been included by the other have dislocation with to Middle pandemic. This companies could in that we materially these proactively companies identify our role to working has and the portfolio, additional

have industries direct impacted. have portfolio cyclical generally our invested and less While limited been in exposure industries to that we most is

facilitate to and teams management information with working actively been have We assistance.

liquidity strong and a have and sources We with balance portfolio. funding diversified well-diversified sufficient sheet a

We had the first non-accruals quarter. no new during

NAV one during in Additionally, repurchased $X.XX resulting quarter, opportunistically first of contribution price our million given shares share. stock, the stock we per an volatility of

a portfolio, XX% debt. to in senior update of our market billion, at of is quarter on our which Turning X $X.X and slide had approximately end, value an portfolio secured

protections. Furthermore, the to global the severely be industries by affected we a strong spread our range likely supported impacted are have investments have of companies limited And industries. loans pervasive, to most collateral sectors directly the are are across downturn. global pandemic that direct exposure impacts Our of variety by of wide to in while been

are businesses. primarily goods example, For And collateralized intellectual and and/or loans are our our categorized brand investments by inventory. apparel licensing luxury as property textile,

planes limited in industry this was And exposure by value are collateralized designed loans to a airline to our engines retention have and in Our downturn. X.X%. a higher

and are payments current. amortization on Additionally, interest all

Our limited investment, the energy of were provides to energy, X.X% to which is large compliance company majority the of a equipment and in in investments software, environmental services an companies. that diversified portfolio,

Our diverse portfolio XXX includes companies.

is largest of our the on as left not the positions Slide company. from any portfolio one income recurring represented position portfolio together the X Our XX%. largest only illustrates, taken X% side on Furthermore, and of chart five our represented income reliant

our over In to well our less income. of half portfolio recurring individual than X% fact, companies contribute

debt interest rate our XX% XX% were of and of rate of these As investments XX, floors. investments were floating to March subject

XX% lien X. Slide of as first consisted on exposure Additionally, demonstrated

the our sources spreads to first in to the value and our of and significant the valued portfolio from market volatility for used over markets, process less broadly while in every ending March, in value an the decline The X,XXX consistent net wider during than are loan decrease repurchases. experienced basis quarter. down volatility private the share with investments using fair experienced points portfolio all led start quarter portfolio Substantially our the quarter X.X% And traded of our markdowns loan of XX% a performance syndicated Moving two asset year. in decades. of market the net ultimately third-party

program from were as our liquidity of were March Turning XX% diverse a XX, XX% were near-term facilities liabilities had our bank leverage outstanding SBA facility. to maturities. no and unsecured, our with of capital we and XX%

portfolio unfunded remaining all $XXX million liquidity the commitments facilities, our available. was of on Additionally, This is we had to of times credit which nearly five companies. of capacity level outstanding

first to like million risk We beyond of know the Follow-on seven with borrowers. $XXX important delivered XX included now we reflect well. these of which were we them and perspective, an capital. understand Gross existing totaled From in relationships the of to value be our companies management opportunities are the to these source a existing and and quarter opportunities. activity believe portfolio just credits the strength borrower new in deployments deployment in loans, would investments continue quarter. discuss I our

to a lenders of set more of a XX lender deal small We the also investments. were where XX new in In of of we take solid continue co-lead we either allows with terms to on or of and helping manage protections This role active periods creditor investments us club quarter, part negotiations. focus first dislocation. our sole on through companies

experience initially of the in the Advantage and first to second equity. in quarter our financing, companies. Dispositions a XXXX. our loan financing services led solution to totaled industry experience provided related technology with deal sale First $XX include lien a payoff leveraging the First million $XX Advantage our We subsequently lien and We million and of team's

improved led million. sale of improved cost loan was the operating to and of equity Advantage meaningfully successful course First refinanced. sale client investment first in from resulted quarter our The platform performance solutions new warrants the the Over technology our of a base. its realized and and its structure, company's in its of The launched this our expanded year $X.X gain

down paydowns included $XX a our of the brands pay million Other Cole. authentic to and loan of quarter $X in Kenneth to an paydown our loan million

yield effective quarter had yield of XX.X%. Investments weighted overall effective portfolio on XX.X%. New effective our weighted we at a average a X.X%. unchanged had of debt was average investments exited The during the yield

has degradation had XXXX yield share resulted pressure put income XX, XXX on March in has and an since LIBOR points of This of investment end our the period. $X.XX this in basis XXXX portfolio XX%. per over declined As recurring or

XX However, limited the rise. demonstrated rates we well loans when presentation. as as rates to any declines floors our for further interest of have LIBOR majority interest Slide on are exposure with our of in is And portfolio the structured positioned

As we investment opportunities, we negotiations analyze co-lead and industry our we continue to diversity where emphasize lead terms. transactions deal on new seniority

to portfolio of second companies draws and activity incremental included unfunded financing investment Our on a amount existing has the commitments. in quarter-to-date modest

the to dividend. Turning

We Our the of of quarter of on $X.XX on June Board record June that power declared the consistent achievable XX a shareholders company. importance a dividend second earnings on XX. the per payable maintaining based share of dividend long-term is understand to

environment with performance. our unrealized the dividend in including regarding of As the the and evaluation are and dialogue loan on impacts or we part our interest in Board and realized portfolio for of the losses our continuous potential current gains rates, policy, changes

our the over Now results I call will will in financial Paul? detail. to more discuss who Paul turn

income $X.XX per of at hello, an on we've and XX. Starting Howard quarter dividend aggregate $X.XX Slide end. on quarter basis shares On by outearned cumulative everyone. outstanding first the total was our investment a for or $XX Net per Thanks, share. based share, exceeding per dividends share million our $X.XX

and $X.XX. interest the for all recurring which of recurring income was cash $X.XX, of $X.XX was and income. fee This share, PIK substantially first amortization of Investment of per interest $X.XX included discount income quarter

including share, prepayments We in included dividend had first that and $X.XX in income quarter both OID. fees also contributed per of Investment unamortized amount the income. the prepayment a quarter from $X.XX modest

Our amortizing investment made. income economics life all time at conservative over the of an the recognition it recognizing follows investment rather upfront of than is generally of our policy the

quarter debt return expenses We the per hurdle. included reduction below the share fees not first per our $X.XX of asset reduced $X.XX as Operating did other of in per first expenses income for incentive and net share accrue total quarter interest $X.XX the and for were in our investment cumulative valuations any share.

our to net and net $X.XX the impact assets or related widening was of per spread million share market the quarter $XX.X COVID-XX. Our for by decrease in across driven volatility portfolio

priced valuations. of are provided investments back our rigorous using testing quarter, sources valuation by including class against services And third oversight services. marks is all every independent and substantially consistently our done we've in best subject reputable to As disposition party including every quotation process

continued had perform during on the quarter. to Despite portfolio new well, we non-accrual our the loans markdowns and no

two value X.X% Avanti portfolio of represented and portfolio a remained the together at at X.X% non-accrual to loans fair Our AGY and and cost. companies

Turning total $X of and of million. net included liquidity $X cash $XXX X, end. settlements had we quarter slide million $XXX at of available This back of million million, pending to leverage

total totaled unfunded contrast, term and loans facilities end portfolio draw delayed investments companies credit In just of or in our million $XX X% at quarter investments. to

of for of including with managing the financial significant capital through has liquidity. the team Our and experience portfolios providing managed and two us seasoned X/XX decades fund's global the downturn loan crisis XXXX,

Drawing straight SBA issuances continued convertible low-cost of the and which credit to flexibility facilities; two two, program. March diversity included one, that an financing the from years, and we XX as issuance; experience, increase have note unsecured note our sources over of

issuances, any laddered issuances Given these well the each on with of our and modest single of we overly maturities. no financing are source near-term not of size are debt reliant

XXXX liabilities. and maturity of nearest XX% March of outstanding Our represented is just

size In weighted April, rate interest X.XX% outstanding facility both credit rate of maintaining to the we average successfully from liabilities extended Combined the of of points. and LIBOR facility at X.XX%, our May plus down our end which a our XXXX. basis the XXX of SVCP attractive XXXX, had was

investment-grade leverage our debt regulatory reaffirmed in Fitch outstanding expense and Moody's net times is both well April. which that trades, of note Net our ratings cash March limitation. SBIC X:X XX, as -- to pleased X:X common also equity and within X.XX are We leverage, of was

Given our at outstanding one an the purchase price significant volatility NAV the X.X% a or share. resulting per first in of end quarter, shares the $X.XX, contribution million we in $X.XX of shares opportunistically of repurchased average price at of share

the I'll call back Howard. now to turn over

the Thanks, everyone. on call environment unprecedented comments Paul. I'll for are opening conclude times the before our questions. with and to outlook a additional These few market

we the several XXXX pandemic last certainty not impact of about anyone on models. our likely would sure as I'm the global of on look with earnings have to many quarterly what the When like, will the disruptions to the business mentioned call, of but associated challenge economy. global appreciated have continue remainder one the is the do not pandemic fully risks We coronavirus potential

indirectly, portfolio sectors most are our or immune to and be not these Given impacted companies, will challenges. directly being

day preserving team while our portfolio However, prior just did capital our our the alongside is we help working ensure crisis health financial long-term shareholders. for to borrowers as entire of every during our companies

cases, include of these invest and thousands and temporary flexibility individuals customers. services seek this terms We management some and employ their goods certain In companies in in strong necessary to provide for may collectively to teams providing good borrowers. credit with companies

of businesses the into going these as helping they dislocation were this on manage focused strong as through are We and period emerge crisis.

prior net any the to years up to a our scheduled BDC on opening Before for the proxy with have asset next shareholder shares to our in for XX% peers, your below Annual Shareholder XX issue Consistent line with proposal many questions, May in on of call we comment of over and a Meeting XX. months up common included approval our given date at value. price our a

markets policy This below an insurance would during would which to to periods the otherwise of on purpose NAV The limited. provide proxy access proposed issuance when our be capital provide is is essentially flexibility. access

went recommended every Our year. we and shareholders shareholders this have approved Board so this our again since do the has public proposal year

these focused focused of returns while for strong In shareholders. and well-being our everyone constituents on ensuring closing times is our are risk-adjusted generating the entire team on challenging for we remain

open And for with questions. call that operator the please

[Operator Finian Instructions] Wells Fargo. O'Shea Our with first comes from question

Your line is open.

having Hi, good on for I me morning as everyone. all hope Thanks well. and

me got don't ever I on TCP. Forgive think first I've question

bit blindsided. I'm a So

just I the not start retail, textile apparels So and want but to on book.

loans I these think wrong correct there. cash are if flow me I'm

Understand, it's pretty not product for and manufacturing retail. environment the well still challenging nonetheless the up obviously They've the a retailing. held

exception I down marked Klein Anne the is to just think was XX%.

sort down? context on hold what in what's how these Anne the well up so of that there? get Any environment? does marked So Klein first difference How can I you guess with do provide second this happened? And one

and Fin, developed Textiles by us thanks today your a luxury apparel broad joining category S&P. and question. is for for goods

you think here that I for they're intellectual selling streams. consumer we categorizations by our are one retail not know products. they ordinary a companies industries. secured S&P retail engaged just have is and/or these assets licensing As property of in use commonality in stores They Each all in

Anne case international that capitalized through it's various are around of very well So the of team stores strongly-backed licensor Internet that management multichannel in sold a Klein the globe. the brands strong is

for we sector, we've how two back really and been for years And think dozen as so involved decades. underwriting a about in about retail now consumer going been the we've over

liquidation we and on evolution pressure of saw each financial for coverage, and/or on we mortar, one investments crisis the out this in But focused bricks asset and as licensing the our values coming of streams hard last sector.

little marked of is a so differently all things marks. And we that the a function it is that third-party fact bit use several

quarter it things, done decades. the LIBOR every of of marks for a maturity assessment. a spreads, They off this comparables, and they also two floors do determine We've series and comparable

things of that of of some series the a go distinct that may valuation into the including maturity. there's and from others So be and that instrument the yield

I'll I'll you. Thank the marks. do helpful. third-party very just follow-on That's -- on a

individually. is value getting because a financials. a of there you at few we're mentioned about book You are marks. on that the questions third-party TCP But not lot level aimed all a your high and XXX% likely challenge times valuation across these This calls of there's space and

And clearly also But pay or these really we more in to is doesn't if incorporate industries to going in valuation see the book can it less, every that many worth are companies money quarter? the face pressure. shareholders' for value XXX%

Appreciate question. great This is a that's Paul. Fin, it.

process We Our name. every to third-party sources for valuation rigorous. noted is look as you

thing is valuations forward-looking. important about that to valuations note The are

markets issued, at are future the investments on trading in, -- in analysis places are As in we're relying and re-underwriting investments as pricing we of look places expectations where are being markets to where their price securities performance.

an look in as we we're prices very addition also so, important every our that be found would to sources are process note so for substantially basis. our accurate asset test testing to that proud name, We've done we assets looking use. of and rigorously I valuation historically basis on third-party a assets. sources using on we and all the of of the very And believe back at be to of XXXX. pricing very

color. All right. from Thank for me. That’s the all you

Fin. you, Thank

Thank you.

with Our Dodd Raymond next comes question Robert James. from

line open. Your is

well. everybody's Hopefully, guys. Hi,

and other first couple then Fin I've of Just to one questions. follow-up a got

example I just value remarks On -- airlines our asset in textile engines. prepared you values, an you've got up for and in substantially. planes brand The is your is the unprecedented where then of but planes part as said not Obviously, underlying mean, obviously, number brands, this period. and out, but

way. that put just Let's

put has not on of I but a in that to revalued much so think the potentially collateral environment how so have the to the X speak months brand a been markets some is of of some the in has assets on how those side. also, end -- just you over asset-backed similar the these maybe -- where with of much airline could XX much market flooded side, overcollateralization the on haircut next But What be environment you loans? mean,

Yes.

So provider scrutiny industry. Robert, we OneSky, of are are the all largest the happen the second fund getting from who as used who which frequently which And have specifically of primary jet of to now us paying business the country thank one. a this investments going an you is private I about fly think area, address to taxpayers what's it. is services We'll It's is those to in And the excellent the airline with two we in of -- in particular question. for think, us who lot

well in actually more liquidity. flying are our would back invested planes. We they payment are very also fractional note are the company these and We private on pay are have volumes significant We've that believe in jet overcollateralized. that It's up have loans private owners They since as them who people they XXXX. run. have that going streams distinct

about maybe planes think, or be you these from air wondering aisle think going as distinct that double I whether business, wide not. it's to in the So large are

primary government. Mesa They've since debt service amortization. money investment the are counterparties. company, obligations from on sector their minimum in their is we and other Our financed current the There from gotten XXXX

well planes turmoil, more tremendous industry valuations our an now. that comfortable of in of they're and but are said if that, likely are values we a them. in we as of Having that they're situated lower going it's dollar these know not amount owned think to We leased that's we are all keep change through so with

what would end I be could was current so obviously, cetera credit mean, we're up cetera, color Appreciate one you seen final far? of for to give et changes I Thank us of et you expect that QX I prepared March. six temporarily borrowers. obviously, remarks On say your Can you in touch. the some mean, amendment Got another in it. any be and it. in. terms activity Did everybody you. you've Got didn't color. weeks at to

can How be are stepping up? So any have the approaches you Any on sponsors the been? what on that us discussions have gone? How appreciated? color would color give front

I value But it's its guiding capital is One is -- it's is wide requests. Yes. for coverage we the structure as by think I protection on That others contract northern general pretty and try can entitled downside Robert, add take of its would philosophy we're sit seniority. one across to by our we're the what And and returns I us -- it in appropriate. mean what gamut the and there's two of board. that things credit protecting a focused say. I'll is Raj. our and the operating the sense ultimately our of the and where in terms the light. and on to most it's

everyone in liquidity for agree that businesses of environment, asset-by-asset at this as would us balance ongoing facing. viability sheet, is by it think With that the ability is the positioning and to I we're unprecedented withstand and of of and length the defensibility downturn and an strength, with about translates which whatever portfolio and the really level composition to

sponsors obviously is for as in huge how that you in business this extent the our us extend are request to from own That the equity involved for and ability requests market. request additional impact of people happened, the said does that first has look to that environment. the has for does To its position and we what And value position? do coming that to

that a forth. tied very cases, bit whether the risk, has, a And little asset may all feel use feel us on It at relief. things be at where of putting don't certain covenant in sale it's vary us. impair don't some compromise of and of and it's to further relief proceeds we It so benign so or they us from an and we

fact, it the overall probably In value. enhances enterprise

the focus. impact it always buying overall change because of or people, obviously to do our Two position downturn revert we be the relief as in enhancing capital, severity skin extends they're it, well. what how uncertainty the us in our value is of to the those continues will and back the which does as it for And will in things business it an And business? the as game extent, increase, normally wouldn't additional nature is their the the constructive, essentially where preservation we without of we increase our so and of of is and the primary or do the it own it's enhancing interest from

there. I one I again, appreciate that last of, through prepared if mean, I and thank you kind for can, read color one remarks. that

congrats on the June. maintaining dividend On for the dividend,

a you that, -- Just really, clarification term. Howard that's to not a you believe but want achievable get long said

are understand position it's you're right So board board to to changing than decision and be a in environment, later. But it's and in that expected long-term that the fair? portfolio, dividend June things rapidly. that of air be to clear be Is would June the and, pay the up that sustainable again now the obviously, going as is the rather everything

rate The companies the environment. Board analyze interest earnings, is and environment, continuing to our the the portfolio

As the the LIBOR the we a at five has on run in share. basis It TCPC a income decreased investment of beginning last rate call, dramatic by quarters. noted the been there's net over $X.XX a of change

which down. normal QX, further only in but Board this LIBOR this sustainability. of not we've lower our is will prepayment looking although, can -- And much there's go, also quarter go and had its is than We've out-earned in dividend past that were terms that the fees, much historically not at something

happen think, to amount also show, we downward those the appropriate and in in we of I our looking with our as And clearly the exposure at assets much We're what have a companies slide portfolio deck, may companies. have volatile very in more period don't books there. and

we're the to each going quarter assessing appropriate what is forward. dividend be going So

you. lot. a right. All Thanks it that’s me. And Thank for

Thank you.

Lynch comes question Ryan from with Our KBW. next

open. Your line is

questions doing morning. all my hope Thanks and are for good taking I you well. Hey,

with liability higher ticked of First most obviously, unsecured have a lot a you additional liquidity. one debt, I actually of just guys was, diversified fair wanted because structure for amount in on leverage guys your BDCs, of you but to hit

a guys about, in kind capital just of, level through thinking talk you of can how So, from are allocation high you these times?

we retain obviously see of uncertainty it, occurs coming given on the what months hold your balance on it sheet can retain kind going You environment have next over this in quarters. and that to to and the

your guys companies; share new you investments. repurchases, make existing did in invest some can You

Just how you sheet you the your are balance guys about currently thinking guys liquidity hold today? on

for Yes. Thanks you as well question. well. that the are Raj. to I'll hope I take -- one. try It's

say, So the -- we in sure you portfolio making portfolio and to current we the liquidity their everything would we capital in of additional in overall, on and will. current ground, and assessing judicious environment, I need market, where assets resource very the the any wave certainly with protect focused it. liquidity would impact one, the the we in crisis, we re-underwrote In liquidity scarce first when is sure a the really making included be to in we of literally that the were want had understood if

operate we way I were stability very is defensive through position ties a underwritten to by staying the -- in left industry, it. fortunately this crisis approach I our where before for That And capital think a think, Fortunately effectively you've us dividend in relatively by the quarter. we shape. are decent of you how to able how and structure by driven

making investments. needed defend looking And but with compromise realize to new position also to can premium to in judicious protect very the we be the a we to current the on to any have for existing amount, business and think we and very an up pricing the this portfolio. the environment, portfolio given extend business and that are environment, -- that as very, maintaining us, current be We the sure we there the to don't but health that, to downturn, in of structures. be through portfolio, be going the would have ongoing for environment reliable understanding either going company also be And liquidity, for open shows at has value we those that so liquidity investments basis, is in capital the a in in funding of counterparty market with are as an which sufficient and we folks our our open the for thought we amount be be

and some be are I in because market environment that -- looking new But don't that expect the do from to quarters. we environment you've we opportunities. of we'll at more the other going itself pace So, deploying through early And this fortunately, combination defense so the quarter. with in it's this offense. position part be expect for we've done that crisis the and playing just the we've the keep of even But seen. of seen a of severity a doing playing to we're

assuming marks based third kicked fair That that the in or expect just give incentive fee. hurdle positive kicking can sense. outlook? on hurdle you the second Do or in? earn and quarters to incentive a just an total question just upcoming that quarters, wanted portfolio or the The no kind my fee in in I how partial in negative to your Okay. I value you no to next of total eliminated on return full curious, return -- makes there's had was incentive the fee payment QX. I'm

This quarter. question. We're the the very Paul. did not Great it. We hurdle is below in Yes. far fall below

So, Hard valuations. of it happens a what out. going when lot on valuations does say, that depend depends to on where forward, come

return asset it's It pleased that we've But total to it it. forward. noted, back We're far. As really downturn of this cumulatively far where we're think, entire not that depends hard exceed it going pleased I values with to the with below kind say -- of the fund. hurdle. able is so even been also includes We're performance going on again forward, looks you a the

appreciate Those time today. Fair all Okay. enough. questions. the I were my

Thank you, Ryan.

you. Thank

Our George Bahamondes next Bank. question from Deutsche with comes

is open. Your line

on you the prior follow-up Hi, thank you mentioned my requests and the question. morning response, taking that a your I you've across received good had In everyone for questions. board.

a Some bit date? that necessarily that for benign formal having quantify, asked more issues the of more get requested may loans maybe more some companies a Just involved? have them are of we or be than to percentage maybe sense isn't maybe benign others than that Can are some others. and relief you

Yes, George, thanks for the question.

my board the my themselves. of interpreted the me the to wasn't Let a a clarify percentage quantifying as large comment, nature request be phrase across of it request, was

really So, amount them a number varied that. in -- the I large say and in. come portfolio did have tight. severe. companies not and have types of the we to of And quantify the to we're more was been would the been we I none question receive relative don't not They that responding of just

speaking, the is generally But I to good predictability wasn't their very very nature we're be high the clarify -- businesses. of given -- as in percentage request. would just portfolio of it's industries having it healthy. interpreted are that So in, Companies a

see. I

for Thank great. clarifying So, that. you

no for may amount to borrowers for formal date? to what way some asked of have us relief Just quantify

I don't that. think we disclose

think not I I would -- yes -- me Let don't -- small it's it's disclosed we a percentage. that but

Okay. me Thanks for additional the this from morning. it That’s color.

you. comes Kotowski question [Operator Thank Instructions] Our Oppenheimer. next from with Chris

open. Your line is

you it how to Yes. up you earn out were to it much incentive fees, of just before asked, how the much hurdle? -- catch to be increase would it can Good the Thanks. of eligible NAV trying to on to have exactly were Can Most need you mine phrase we in morning. terms but again. calculate you'd cross

Good question. is Paul. This

really combination We income. we'll quarter. and investment increases through much. quarter. that out We goes again in first earn a can not whether not earned the and see QX Fortunately, dipped that NAV here It's how second far, it's back in of but net the it below

And is and you then refresh And how purchases sixes a the share versus Okay. price-sensitive an how that you the How have do you outstanding the yes, there much capital And at good. investing? my look that? left in were And is authorization. memory, on obviously there? on maintaining repurchases, are

Chris, question. our it's just on for you an share Thanks Howard. functioned certain the automatically Historically, under note million $XX repurchases program algorithm, levels. whereby a have at as happened

into that when March. unprecedented and able so of pull end market and market, the mid in go significantly we on disruption the sold program were off to early Given the stocks actively

we've create in had able be many the we is value, place so a a in And it years. we're something for shareholder was Clearly, environment -- opportunity unusual. unique thought it's to to

also have capital forward. strong we're program we does that carefully our use exist. maintaining very the The thinking balance sheet so how we and And about going

we maybe of you don't call much our out a on program in aggregate. a we've will on will but disclosure perhaps spent number -- there, We next the have giving consider how we

right. All Okay. you. That's me. Thank it for

you. Thank

Thank you.

Our next question Thalmann. comes Ladenburg from Nolan Christopher with

Your line is open.

the of the what exposure of thoughts I late, are your mean, but call the I credit apologize. of joined airline and your that in trajectory I exposure Hey. there? difficulties market, terms given your aircraft

actually had We that thanks the detailed question-and-answer Chris, a one. question. on for

our don't to we've it we addressed so we that with appropriate earlier any others if happy call just the that what what take And have. on that, said be previously on for others, like repeat you follow-up to more there. to in so major off-line might positions additional in you'd you we said questions But

No, Thank that's taking you for me, Howard. it for question. my

Thank you. Okay.

the turn will Levkowitz at questions remarks. I'm Howard Thank time. no I currently this you. showing over call to back closing for And further

at today's this BlackRock We everybody TCP Capital continued joining us We support healthy challenging hard and your our that your joining and hope professionals appreciate for again confidence times. our thank like Corp and of for dialogue safe. dedication your Thanks you us. you continued experienced and I'd for questions This to team is talented -- and Thank in call. work and for your today. concludes

concludes Ladies and call. Thank gentlemen, today's you for participating. this conference

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