BlackRock Capital Investment Corporation (BKCC) Reports In-Line Q4 EPS

BlackRock Capital Investment Corporation (NASDAQ: BKCC) reported Q4 EPS of $0.14, in-line with the analyst estimate of $0.14.

“During 2019, we demonstrated significant progress towards achieving our stated strategy of re-shaping the portfolio to optimize NII and provide a stable stream of income with reduced volatility. This included a meaningful increase in income-producing senior secured investments accompanied with a reduction in non-core assets,” commented James E. Keenan, Chairman and Interim CEO of the Company.

“Specifically, the origination and portfolio composition metrics over the course of 2019 include:

• Gross deployments of approximately $304 million included first or second lien loans to 25 new portfolio companies
• Number of portfolio companies increased from 27 to 47
• First lien investments increased from 24% of the portfolio by FMV to 34%
• First and second lien (i.e. secured) investments increased from 47% of the portfolio by FMV to 57%
• Net Leverage ratio: increased from 0.36x to 0.70x

“In the fourth quarter, the Company had gross and net deployments of $73.0 million and $34.9 million, respectively. These deployments were made across five new portfolio companies and four add-on investments. Our deployment activity during the quarter drove net leverage to 0.70x compared to 0.61x as of the previous quarter, moving us closer towards our targeted leverage levels.

“In addition, we demonstrated further progress on exiting our legacy non-earning equity exposure through a partial redemption of approximately 22% of our previous holding in Advantage Insurance Inc.’s preferred stock. The non-core legacy portfolio reduced to 16% of the total portfolio by fair market value at December 31, 2019, compared to 18% and 33% at September 30, 2019 and December 31, 2018, respectively. The fourth quarter net unrealized and realized losses of $11.2 million (or $0.16 per share) was predominantly driven by the non-core legacy investments in AGY Holding Corporation. We remain committed to creating additional exits in the non-core portfolio and redeploying that capital into core income producing, secured assets.”

For earnings history and earnings-related data on BlackRock Capital Investment Corporation (BKCC) click here.

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