TCG BDC, INC. REPORTS THIRD QUARTER 2020 FINANCIAL RESULTS
NOVEMBER 4, 2020 | EXHIBIT 99.2 |
Disclaimer and Forward-Looking Statements
This presentation (the "Presentation") has been prepared by TCG BDC, Inc. (together with its consolidated subsidiaries, "we," "us," "our," "TCG BDC" or the "Company") (NASDAQ: CGBD) and may only be used for informational purposes only. This Presentation should be viewed in conjunction with the earnings conference call of the Company held on November 5, 2020 and the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2020. The information contained herein may not be used, reproduced, referenced, quoted, linked by website, or distributed to others, in whole or in part, except as agreed in writing by the Company.
This Presentation does not constitute a prospectus and should under no circumstances be understood as an offer to sell or the solicitation of an offer to buy our common stock or any other securities nor will there be any sale of the common stock or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.
This Presentation provides limited information regarding the Company and is not intended to be taken by, and should not be taken by, any individual recipient as investment advice, a recommendation to buy, hold or sell, or an offer to sell or a solicitation of offers to purchase, our common stock or any other securities that may be issued by the Company, or as legal, accounting or tax advice. An investment in securities of the type described herein presents certain risks.
This Presentation may contain forward-looking statements that involve substantial risks and uncertainties, including the impact of COVID-19 on the business. You can identify these statements by the use of forward-looking terminology such as "anticipates," "believes," "expects," "intends," "will," "should," "may," "plans," "continue," "believes," "seeks," "estimates," "would," "could," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. There may be events in the future, however, that we are not able to predict accurately or control. You should not place undue reliance on these forward-looking statements, which speak only as of the date on which we make them. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, the risks, uncertainties and other factors we identify in the sections entitled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" in filings we make with the Securities and Exchange Commission (the "SEC"), and it is not possible for us to predict or identify all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Information throughout the Presentation provided by sources other than the Company (including information relating to portfolio companies) has not been independently verified and, accordingly, the Company makes no representation or warranty in respect of this information.
The following slides contain summaries of certain financial and statistical information about the Company. The information contained in this Presentation is summary information that is intended to be considered in the context of our SEC filings and other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this Presentation.
TCG BDC is managed by Carlyle Global Credit Investment Management L.L.C. (the "Investment Adviser"), an SEC-registered investment adviser and a wholly owned subsidiary of The Carlyle Group Inc. (together with its affiliates, "Carlyle").
This Presentation contains information about the Company and certain of its affiliates and includes the Company's historical performance. You should not view information related to the past performance of the Company as indicative of the Company's future results, the achievement of which is dependent on many factors, many of which are beyond the control of the Company and the Investment Adviser and cannot be assured. There can be no assurances that future dividends will match or exceed historical rates or will be paid at all. Further, an investment in the Company is discrete from, and does not represent an interest in, any other Carlyle entity. Nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance of the Company or any other Carlyle entity.
2
TCG BDC Highlights
TCG BDC
Overview
Investment
Strategy
Benefits of
Carlyle
Defensively
Positioned Portfolio
- Middle-marketlending focused BDC externally managed by Carlyle (1)
- Current market capitalization of $478 million(2) (NASDAQ listed; ticker: CGBD)
- Track record of consistent dividend delivery to shareholders - LTM dividend yield on quarter-end net asset value ("NAV") of 11.1%
- Directly originate private credit investments, with a focus on U.S. private equity finance
- Maintain appropriately diversified, defensively oriented portfolio of primarily senior secured debt instruments
- Utilize Carlyle's extensive platform resources to generate differentiated results for TCG BDC shareholders
- Founded in 1987, Carlyle is a leading global investment firm with $230bn of AUM
- Carlyle's Global Credit segment, with $53bn of AUM, has a 20-year track record of successful credit investing
- Carlyle's broad capabilities, scaled capital base and depth of expertise create sustainable competitive advantages across market environments
- Well-diversifiedby issuer and industry: top 10 borrowers and top 3 industries 20% and 29% of exposure, respectively
- Heavy portfolio tilt to 1st lien loans: historically 70% of portfolio, of which, >90% contain a financial covenant (3)
- Approximately half the exposure of broader markets to cyclical industries
Source: The Carlyle Group Inc. As of September 30, 2020 unless otherwise stated. | 3 |
(1) TCG BDC is externally managed by the Investment Adviser, which is a wholly-owned subsidiary of The Carlyle Group Inc. (2) As of November 3, 2020 (3) LTM average of approximately 70% |
of fair value, and excludes loans categorized as first lien last out.
Stock and Dividend Information
CGBD | $478 Million | Nasdaq | |||
Ticker | Market Cap (2) | Exchange | |||
$1.9 billion | 146 | 69% | 11.1% | $86 Million | |
Current Portfolio Size | Unique Investments | 1st Lien Debt (3) | LTM Dividend Yield | Inception-to-date | |
Share Repurchases | |||||
Historical Dividend Data | 12.3% |
10.6% | 10.5% | 11.2% | 11.1% | |||||||||||||||||||
10.1% | 10.1% | 10.2% | 10.3% | |||||||||||||||||||
9.9% | 9.6% | 9.6% | 9.8% | 9.7% | ||||||||||||||||||
9.2% | 9.0% | 9.1% | 9.1% | |||||||||||||||||||
8.8% | 8.7% | 8.8% | 8.9% | |||||||||||||||||||
7.9% | ||||||||||||||||||||||
$0.18 | $0.20 | $0.18 | ||||||||||||||||||||
$0.07 | $0.12 | $0.08 | ||||||||||||||||||||
$0.05 | ||||||||||||||||||||||
$0.37 | $0.37 | $0.42 | $0.40 | $0.40 | $0.40 | $0.40 | $0.41 | $0.41 | $0.37 | $0.37 | $0.37 | $0.37 | $0.37 | $0.37 | $0.37 | $0.37 | $0.37 | $0.37 | $0.37 | $0.37 | $0.37 | $0.32 |
Q1'15 | Q2'15 | Q3'15 | Q4'15 | Q1'16 | Q2'16 | Q3'16 | Q4'16 | Q1'17 | Q2'17 | Q3'17 | Q4'17 | Q1'18 | Q2'18 | Q3'18 | Q4'18 | Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 |
Dividend | Special Dividend | LTM Dividend Yield |
Note: Historical dividend data for dividends declared prior to the period shown are available on the Company's website at tcgbdc.com. There can be no assurance that the Company will continue to achieve comparable results.
(1) Last-twelve-month ("LTM ") dividend yield is calculated by dividing the sum of the declared dividends for the most recent four quarters by the ending net asset value. (2) As of November 3,4 2020 (3) Based on fair value, and excludes loans categorized as first lien last out.
Q3 2020 Quarterly Results
3rd Quarter Results
Portfolio &
Investment
Activity
Dividend &
Capital
Activity
- Net investment income per common share, net of the preferred dividend, was $0.36, comfortably covering the regular dividend of $0.32
- There were no additional investments put on non-accrual status during the quarter, while risk rated 3-5 assets declined by approximately 2%
- Net realized and unrealized gains totaled $12 million, or approximately $0.22 per common share
- NAV per common share increased to $15.01 (up 1.4% from $14.80 last quarter), driven largely by underlying credit improvement and tightening yield benchmarks
- Total investments at fair value were flat compared to last quarter at $1.9 billion
- New fundings totaled $61 million with a yield of 8.78% and repayment/sale activity totaled $36 million with a yield of 8.44%
- Borrower financial performance and liquidity continues to improve alongside the economic recovery, while the new deal environment is on a path to normalization
- On November 3, we formed Middle Market Credit Fund II, LLC, an 84% owned joint-venture with a leading institutional credit investor, further solidifying our balance sheet position
- Paid Q3 dividend at new regular level of $0.32 per common share, plus a special $0.05 dividend per common share, resulting in a LTM dividend yield of 11.1% based on quarter-end NAV
- Declared Q4 dividend of $0.32 per common share, plus a special $0.04 dividend per common share
- Closed successful amendment to the corporate revolver facility that extended the reinvestment period and final maturity by one year
5
TCG BDC Portfolio Highlights
Key Statistics (1) | Diversification by Borrower | ||||||||
Total Investments and Commitments ($mm) | $2,073 | 10% | |||||||
20% | |||||||||
Unfunded Commitments (1) ($mm) | $125 | ||||||||
Investments at Fair Value ($mm) | $1,948 | ||||||||
Top 10 Investments | |||||||||
Yield of Debt Investments at Cost (2) (%) | 7.44% | ||||||||
Next 11-25 Investments | |||||||||
Yield of Debt Investments at Fair Value (2) (%) | 7.94% | Remaining Investments | |||||||
Investment Fund | |||||||||
Number of Investments | 146 | 23% | |||||||
47% | |||||||||
Number of Portfolio Companies | 114 | ||||||||
Floating / Fixed (3) (%) | 99.1% / 0.9% | ||||||||
Asset Mix | Diversification by Industry |
10% | ||||||||
2% | ||||||||
First Lien Debt | High Tech Industries | |||||||
(ex Unitranche) | Investment Fund | |||||||
First Lien/Last Out | 15% | Business Services | ||||||
Unitranche | Healthcare & Pharmaceuticals | |||||||
Second | Banking, Finance, Insurance & Real Estate | |||||||
Lien Debt | Telecommunications | |||||||
Equity | 4% | Aerospace & Defense | ||||||
Investments | Software | |||||||
Investment | 69% | Beverage, Food & Tobacco | ||||||
Fund | All Others | |||||||
consolidated with the Company. (2) Weighted on interest rates as of period end. Actual yields earned over the life of each investment could differ materially from the yields presented above. Weighted average yields for TCG BDC do not include TCG BDC's
investment in Credit Fund. (3) % of fair value of first and second lien debt.
11%
32%
4%
6%6%
6% 6%
6
10%
8%
7%
Financial Performance Summary
(Dollar amounts in thousands, except per share data) | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 |
Net Asset Value Per Common Share | |||||
Net Investment Income Per Common Share (1) | $0.45 | $0.43 | $0.42 | $0.38 | $0.36 |
Net Realized & Unrealized Gain (Loss) Per Common Share | (0.60) | 0.02 | (2.57) | 0.61 | 0.22 |
Net Income (Loss) Per Common Share | (0.15) | 0.46 | (2.15) | 0.99 | 0.58 |
Dividends Paid Per Common Share | 0.37 | 0.55 | 0.37 | 0.37 | 0.37 |
Impact of Share Repurchases Per Common Share | 0.04 | 0.06 | 0.14 | - | - |
Net Asset Value Per Common Share | $16.58 | $16.56 | $14.18 | $14.80 | $15.01 |
Common Shares Outstanding (in thousands) | |||||
Weighted Average Common Shares Outstanding for the Period | 59,588 | 58,785 | 59,588 | 56,309 | 56,309 |
Common Shares Outstanding at End of Period | 59,013 | 57,764 | 56,309 | 56,309 | 56,309 |
Portfolio Highlights | |||||
Total Fair Value of Investments | $2,126,688 | $2,123,964 | $2,024,277 | $1,907,555 | $1,948,173 |
Number of Portfolio Companies | 110 | 112 | 110 | 111 | 114 |
Average Size of Investment in Portfolio Company (Notional) (2) | $20,828 | $19,848 | $20,337 | $18,380 | $19,119 |
Weighted Average all-in Yield on Investments at Amortized Cost (3) | 8.88% | 8.22% | 7.74% | 7.34% | 7.44% |
Weighted Average all-in Yield on Investments at Fair Value (3) | 9.33% | 8.50% | 8.56% | 7.90% | 7.94% |
Debt to Equity | |||||
Net Assets | $978,601 | $956,471 | $798,534 | $883,304 | $895,222 |
Debt | $1,202,739 | $1,177,832 | $1,262,960 | $1,035,799 | $1,074,806 |
Net Financial Leverage at Quarter End (4) | 1.17x | 1.20x | |||
Statutory Debt To Equity at Quarter End (5) | 1.23x | 1.23x | 1.58x | 1.31x | 1.33x |
Note: The net asset value per common share and dividends declared per common share are based on the common shares outstanding at each respective quarter-end. Net investment income per common share and net change in realized and unrealized gain (loss) per common share are based on the weighted average number of common shares outstanding for the period. (1) Net of the preferred dividend. (2) Excludes equity investments. (3) Weighted average yields include the effect of accretion of discounts and amortization of premiums and are
based on interest rates as of each respective period end. Actual yields earned over the life of each investment could differ materially from the yields presented above. (4) Reflects7 cumulative convertible preferred securities as equity. (5) Reflects cumulative convertible preferred securities as debt. These securities are considered "senior securities" for the purposes
of calculating asset coverage pursuant to the Investment Company Act.
Origination Activity Detail
(Dollar amounts in thousands and based on par/principal) | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | |||||
TCG BDC Originations and Net Investment Activity | ||||||||||
Investment Fundings | $ | 237,004 | $ | 289,763 | $ | 328,119 | $ | 63,080 | $ | 60,826 |
Unfunded Commitments, Net Change | 719 | (23,963) | (45,902) | 13,630 | 7,706 | |||||
Sales and Repayments | (165,672) | (319,882) | (288,190) | (264,200) | (36,441) | |||||
Net Investment Activity | $ | 72,051 | $ | (54,082) | $ | (5,973) | $ | (187,490) | $ | 32,091 |
TCG BDC Originations by Asset Type | ||||||||||
First Lien Debt | 68.10% | 87.80% | 43.87% | 65.43% | 99.41% | |||||
First Lien, Last-out Debt | 12.25% | 3.50% | -% | 33.17% | -% | |||||
Second Lien Debt | 19.32% | 7.92% | 50.03% | 0.58% | -% | |||||
Equity Investments | 0.33% | 0.78% | 6.10% | 0.82% | 0.59% | |||||
TCG BDC Total Investment Portfolio at Fair Value (1) | ||||||||||
First Lien Debt | 68.05% | 74.63% | 73.02% | 69.03% | 69.01% | |||||
First Lien, Last-out Debt | 10.04% | 3.68% | 2.79% | 4.10% | 4.04% | |||||
Second Lien Debt | 10.92% | 11.04% | 13.59% | 14.61% | 14.77% | |||||
Equity Investments | 1.44% | 1.02% | 1.45% | 1.66% | 1.69% | |||||
Investment Fund / Credit Fund | 9.55% | 9.63% | 9.15% | 10.60% | 10.49% |
Please refer to the Company's Form 10-Q for the period ended ended September 30, 2020 ("Form 10-Q") for more information. No assurance is given that the Company will continue to achieve comparable results.
(1) At quarter end.
8
Quarterly Operating Results Detail
(Dollar amounts in thousands) | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 |
Investment Income | |||||
Interest Income | $45,168 | $44,248 | $41,009 | $35,026 | $33,114 |
Payment-In-Kind Interest Income | 2,396 | 910 | 643 | 1,202 | 1,810 |
Income From Credit Fund | 6,459 | 7,028 | 6,549 | 5,500 | 5,750 |
Other Income | 1,756 | 1,279 | 2,344 | 3,547 | 2,110 |
Total Investment Income | $55,779 | $53,465 | $50,545 | $45,275 | $42,784 |
(Dollar amounts in thousands) | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 |
Expenses | |||||
Management Fees (1) | 8,016 | 7,702 | 7,386 | 7,065 | 7,134 |
Incentive Fees (2) | 5,710 | 5,383 | 5,086 | 4,667 | 4,322 |
Interest Expense & Credit Facility Fees | 14,083 | 13,321 | 12,769 | 10,231 | 8,019 |
Other Expenses | 1,166 | 1,447 | 1,280 | 1,520 | 1,688 |
Excise Tax Expense | 49 | 235 | 52 | 100 | 387 |
Net Expenses | 29,024 | 28,088 | 26,573 | 23,583 | 21,550 |
Net Investment Income | 26,755 | 25,377 | 23,972 | 21,692 | 21,234 |
Net Realized and Unrealized Gains (Losses) | (35,744) | 1,459 | (145,072) | 34,466 | 12,374 |
Net Income (Loss) | $(8,989) | $26,836 | $(121,100) | $56,158 | $33,608 |
- Beginning October 1, 2017, the base management fee is calculated at an annual rate of 1.50% of the Company's gross assets, excluding cash and cash equivalents but including assets acquired through the use of leverage. In addition, on August 6, 2018, the Company's Board of Directors approved a one-third (0.50%) reduction in the 1.50% annual base management fee rate charged by the Investment Adviser on assets financed using leverage in excess of 1.0x debt to equity. Effective July 1, 2018, the reduced annual fee of 1.00% applies to the average value of the Company's gross assets as of the end of the two most recently completed calendar quarters that exceeds the product of (i) 200% and (ii) the average value of the Company's net asset value at the end of the two most recently completed calendar quarters.
- Effective October 1, 2017, the Investment Adviser agreed to charge 17.5% instead of 20% with respect to the entire calculation of the incentive fee.
Note: There can be no assurance that we will continue to earn income at this rate and our income may decline. If our income declines, we may reduce the dividend we pay and the yield you earn may | 9 |
decline. Refer to the consolidated financial statements included in Part I, Item 1 of the Company's Form 10-Q for additional details. | |
Quarterly Balance Sheet Detail
(Dollar amounts in thousands, except per share data) | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 |
Assets | |||||
Investments-non-controlled/non-affiliated, at fair value | $1,893,216 | $1,897,057 | $1,826,422 | $1,692,073 | $1,737,044 |
Investments-non-controlled/affiliated, at fair value | 6,607 | - | - | - | - |
Investments-controlled/affiliated, at fair value | 226,865 | 226,907 | 197,855 | 215,482 | 211,129 |
Total investments, at fair value | 2,126,688 | 2,123,964 | 2,024,277 | 1,907,555 | 1,948,173 |
Cash and cash equivalents | 70,281 | 36,751 | 65,525 | 29,916 | 37,088 |
Receivable for investment sold | 5,725 | 6,162 | 15,655 | 53 | 74 |
Deferred financing costs | 4,687 | 4,032 | 4,026 | 3,749 | 3,651 |
Interest Receivable from Non-Controlled/Non-Affiliated/Affiliated Investments | 11,561 | 9,462 | 10,406 | 10,873 | 12,791 |
Interest and Dividend Receivable from Controlled/Affiliated Investments | 6,951 | 6,845 | 6,350 | 5,589 | 5,754 |
Prepaid expenses and other assets | 97 | 317 | 587 | 899 | 856 |
Total assets | $2,225,990 | $2,187,533 | $2,126,826 | $1,958,634 | $2,008,387 |
Liabilities | |||||
Payable for investments purchased | $11 | $- | $24,345 | $61 | $- |
Secured borrowings | 756,511 | 616,543 | 701,609 | 474,386 | 513,332 |
2015-1 Notes payable, net of unamortized debt issuance costs | 446,228 | 446,289 | 446,351 | 446,413 | 446,474 |
Senior Notes | - | 115,000 | 115,000 | 115,000 | 115,000 |
Due to Investment Adviser | 142 | - | - | - | - |
Interest and credit facility fees payable | 7,680 | 6,764 | 6,100 | 4,532 | 3,405 |
Dividend payable | 21,825 | 31,760 | 20,824 | 21,379 | 20,830 |
Base management and incentive fees payable | 13,726 | 13,236 | 12,333 | 11,572 | 11,473 |
Administrative service fees payable | 66 | 77 | 98 | 129 | 85 |
Other accrued expenses and liabilities | 1,200 | 1,393 | 1,632 | 1,858 | 2,566 |
Total liabilities | 1,247,389 | 1,231,062 | 1,328,292 | 1,075,330 | 1,113,165 |
Net assets | 978,601 | 956,471 | 798,534 | 883,304 | 895,222 |
Total liabilities & net assets | $2,225,990 | $2,187,533 | $2,126,826 | $1,958,634 | $2,008,387 |
Net Asset Value Per Common Share | $16.58 | $16.56 | $14.18 | $14.80 | $15.01 |
Please refer to the Company's Form 10-Q for more information. | 10 |
Credit Fund Update (10% of TCG BDC Portfolio)
Credit Fund Key Statistics | Portfolio Composition | |||||
Total Investments and Commitments ($mm) | $1,376 | Diversification by Borrower | Diversification by Industry | |||
Unfunded Commitments ($mm) | $85 | |||||
Investments at Fair Value ($mm) | $1,291 | |||||
Yield of Debt Investments (%) (1) | 5.95% | |||||
Number of Investments | 65 | |||||
First Lien Exposure (%) (2) | 96% | |||||
Floating / Fixed (%) (3) | 98.3% / 1.7% | |||||
Dividend Yield to TCG BDC | 11% | |||||
(Dollar amounts in thousands and based on par/principal) | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | |||||
Credit Fund Originations and Net Investment Activity | ||||||||||
Investment Fundings | $ | 93,821 | $ | 139,134 | $ | 179,383 | $ | 56,795 | $ | 46,575 |
Unfunded Commitments, Net Change | 1,429 | 11,101 | (33,615) | (26,933) | 18,929 | |||||
Sales and Repayments | (154,969) | (165,292) | (141,762) | (39,584) | (31,413) | |||||
Net Investment Activity | $ | (59,719) | $ | (15,057) | $ | 4,006 | $ | (9,722) | $ | 34,091 |
(1) Weighted average yields at cost of the debt investments include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of period end. Actual
yields earned over the life of each investment could differ materially from the yields presented above. (2) First lien, excluding loans categorized as first lien last out, as a % of fair value. (3) % of11 fair value of first and second lien debt.
Net Asset Value Per Common Share Bridge
Third Quarter 2020 | YTD 3Q 2020 | ||||||||||||||
$0.36 | $1.16 | ||||||||||||||
$0.22 | |||||||||||||||
$15.01 | |||||||||||||||
$14.80 | $16.56 | $(1.11) | |||||||||||||
$(0.37) | |||||||||||||||
$0.14
$(1.74)
$15.01
June 30, 2020 | Net Investment | Dividend | Net Realized and | September 30, | December 31, | Net | Dividend | Net Realized | Impact of | September |
NAV | Income | Declared | Unrealized Gain | 2020 NAV | 2019 NAV | Investment | Declared | and | Share | 30, 2020 NAV |
(Loss) | Income | Unrealized | Repurchases | |||||||
Gain (Loss) |
Note: The net asset value per common share and dividends declared per common share are based on the common shares outstanding at each respective quarter-end. Net investment | |
income per common share and net realized and unrealized gain (loss) per common share are based on the weighted average number of common shares outstanding for the period. Net | |
investment Income is also net of the preferred dividend. | 12 |
Risk Rating Distribution
• As of September 30, 2020, 5 borrowers were on non-accrual status, representing 3.5% of total investments at fair value and 5.9% at amortized cost
Portfolio Risk Ratings | |||||
(Dollar amounts in millions) | June 30, 2020 | September 30, 2020 | |||
Internal Risk Rating | Fair Value | % of Fair Value | Fair Value | % of Fair Value | |
1 | $37.3 | 2.23% | $38.8 | 2.27% | |
2 | 1,145.7 | 68.46% | 1,201.4 | 70.22% | |
3 | 412.4 | 24.65% | 380.8 | 22.26% | |
4 | 36.8 | 2.20% | 48.9 | 2.86% | |
5 | 41.3 | 2.47% | 40.9 | 2.39% | |
Total | $1,673.5 | 100.00% | $1,710.9 | 100.00% |
Rating Definition
- Borrower is operating above expectations, and the trends and risk factors are generally favorable.
- Borrower is operating generally as expected or at an acceptable level of performance. The level of risk to our initial cost bases is similar to the risk to our initial cost basis at the time of origination. This is the initial risk rating assigned to all new borrowers.
- Borrower is operating below expectations and level of risk to our cost basis has increased since the time of origination. The borrower may be out of compliance with debt covenants. Payments are generally current although there may be higher risk of payment default.
Borrower is operating materially below expectations and the loan's risk has increased materially since origination. In addition to the borrower
- being generally out of compliance with debt covenants, loan payments may be past due, but generally not by more than 120 days. It is anticipated that we may not recoup our initial cost basis and may realize a loss of our initial cost basis upon exit.
Borrower is operating substantially below expectations and the loan's risk has increased substantially since origination. Most or all of the debt
- covenants are out of compliance and payments are substantially delinquent. It is anticipated that we will not recoup our initial cost basis and may realize a substantial loss of our initial cost basis upon exit.
13
Funding and Capital Management Overview
Overview of Financing Facilities (1) | Debt on Company's Balance Sheet (in millions) |
Credit | SPV Credit | 2015-1R | Senior Unsecured | |
Facility (2) | Facility (2) | Notes (2) (6) | Notes | |
Size | $688 million | $275 million | $449 million | $115 million |
Original Tenor / | 5 years (4 year | 5 years (3 years | ||
revolving); maturity | revolving); maturity | 10/15/2031 | 12/31/2024 | |
Maturity Date | ||||
date 10/28/2025 | date 5/23/2023 | |||
Pricing | L + 225 bps / 37.5 bps | L +200bps / 50-75bps | 238 bps (3) | 475 bps |
unused fee | unused fee | Fixed | ||
Credit Fund Sub | 2017-1 | 2019-2 | Credit Fund Warehouse | |
Facility (2) (3) | Notes (4) | Notes (5) | II Facility (7) | |
Size | $640 million | $181 million | $267 million | $150 million |
outstanding | outstanding | |||
Original Tenor / | 6 years (3 years | 3 years (2 years | ||
revolving); maturity | 1/15/2028 | 4/15/2029 | revolving); maturity date | |
Maturity Date | ||||
date 5/22/2024 | 8/16/2022 | |||
Pricing | L + 225 bps / 50-75 | 274 bps (3) | 293 bps (3) | L + 115 bps |
bps unused fee |
Cumulative Convertible Preferred Stock (8)
$2,000 | ||
$1,527 | ||
$1,600 | ||
$1,077 | ||
$1,200 | ||
$800 | ||
$400 | ||
$- | ||
Leverage | Leverage | |
Utilized | Committed |
Mark to Market vs. Non-Mark to Market Debt
100%
80%
60% | 48% | 52% |
40% | ||
Price | Shares Outstanding | Dividend | Convertible Feature | 20% | |||||
$25 per share / | 7.0% Cash or | Convertible at the option of the holder | |||||||
2,000,000 | beginning 11/5/2020 at the Liquidation | -% | |||||||
$50 million total | 9.0% PIK | ||||||||
Preference divided by $9.50 | MTM | Non-MTM | |||||||
(1) Refer to Notes 6 and 7 to the consolidated financial statements included in Part I, Item 1 of the Company's Form 10-Q for additional details regarding the financing | |||||||||
maximum principal amount of the facility and is subject to availability under the facility, which is based on certain advance rates multiplied by the value of certain portfolio investments of the Company or | |||||||||
Credit Fund (subject to certain concentration limitations) and may be net of certain other indebtedness that the Company or Credit Fund may incur in accordance with the terms of the facility. Middle | |||||||||
Market Credit Fund SPV, LLC (the "Credit Fund Sub"), a Delaware limited liability company, was formed on April 5, 2016. Credit Fund Sub is a wholly-owned subsidiary of Credit Fund and is | |||||||||
consolidated in Credit Fund's consolidated financial statements commencing from the date of its formation. (3) Weighted average interest rate, including amortization of debt issuance costs on the | |||||||||
2015-1R Notes, 2017-1 Notes and 2019-2 Notes, respectively, for the quarter ended September 30, 2020. | (4) MMCF CLO 2017-1 LLC, the issuer, is a wholly-owned and consolidated subsidiary of | ||||||||
Credit Fund. (5) MMCF CLO 2019-2 LLC, the issuer, is a wholly-owned and consolidated subsidiary of Credit Fund. (6) Carlyle Direct Lending CLO 2015-1R LLC, the issuer, is a wholly-owned and | 14 | ||||||||
consolidated subsidiary of the Company. (7) MMCF Warehouse II, LLC, is a wholly-owned and consolidated subsidiary of Credit Fund. (8) Refer to Note 9 to the consolidated financial statements |
included in Part I, Item 1 of the Company's Form 10-Q for full details regarding the terms of the cumulative convertible preferred stock.
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TCG BDC Inc. published this content on 04 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2020 10:41:02 UTC