Q2 2020 BlackRock TCP Capital Corp Earnings Call
Ladies and gentlemen, good afternoon, and welcome everyone to Black box TCP Capital Corp, second quarter 2020, <unk> earnings Conference call.
This call is being recorded for replay purposes during the presentation.
<unk> expense will be in listen only mode.
Question and answer session will follow the company's formal remarks.
The question. Please press the Star key followed by the one key I will repeat these instruction before we begin to see an age session.
And now I would like to turn the corner to Canadian Mcglynn Directive the Blackrock TCP Capital Corp, Global Investor Relations team Katy. Please proceed.
Thank you Victor just worried again I'll note that this conference call may contain forward looking statements based on the estimates and assumptions of management at the time in such statements and are not guarantees of future performance.
Forward looking statements involve risks and uncertainties and actual results could differ materially from those projected any forward looking statements made on this call are made as of today and are subject to change without notice.
This morning, we issued our earnings release for the second quarter ended June 30, 2020, we also posted a supplemental earnings presentation to our web site at TCP capital Dot Com Davita slide presentation, which we will refer to on today's call. Please click on the Investor Relations link and select events and presentations.
These documents should be reviewed in conjunction with the company's form 10-Q, which was filed with the FCC. This morning, I'll now turn the call over to our chairman and CEO Howard Levkowitz.
Thanks, Katy first and foremost we hope everyone is staying healthy and say.
Thank you for joining us today.
There are several members of the TCPC team on the call with me, including our President and COO Raj Vig and our CFO Paul Davis.
Well start with a few highlights and updates since our last earnings call.
I will then provide an update on our portfolio in activity during the quarter.
Paul will review, our financial results and our capital and liquidity after Paul's comments I will provide some closing comments before opening the call to your questions starting on slide four.
And then update on our portfolio performance.
Following the dramatic market dislocation and volatility in March the second quarter saw significant recovery across both credit and equity markets.
Broadly syndicated loan market, which has been more volatile than our portfolio recovered meaningfully and the overall yield spreads in the private markets also tightened.
Our portfolio continued to perform well despite the significant headwinds caused by the pandemic and our second quarter results benefited from the broader market recovery.
Our net asset value increased 3.8% in the second quarter, reflecting a 1.6% net market value gain on our investments.
Credit quality of our portfolio. Overall also remains solid as of June 30, total non accruals were just 0.6% for the portfolio at fair value.
Next.
As Paul will discuss in more detail, we further strengthened our capital and liquidity position during the second quarter by extending the maturity and increasing the capacity of one of our credit facilities and subsequent to quarter end, we replaced our other credit facility with a new one on more favorable terms and with a longer maturity.
Facilities now also have expansion accordion features totaling $150 million in aggregate and we are deeply appreciative of the strong relationships with both of our lender groups. In addition, this morning, we issued a press release announcing changes to our board of directors.
Brian Ruble announced his retirement from the TCPC Board effective August 4th we thank Brian for 16 years of outstanding service as a director to funds managed by Tcpcs advisor.
Including five years on the TCPC Board.
We're also pleased to welcome Andrea Pietro to our board.
She has an extensive background and credit and specialty finance, having run a significant lending business at wells Fargo for many years and we look forward to benefiting from her neuro nearly 30 years of experience in commercial finance.
Under his addition to the board continues our long term commitment to diversity.
And we're pleased to report that half of our independent directors are now women.
Turning to our dividend policy.
As we mentioned on our last earnings call. We are in frequent dialogue with our board regarding the current environment, including the significant decline in LIBOR over the last six quarters, which has reduced our quarterly recurring net investment income before incentives by approximately nine cents.
Consequently, our board has made the decision to reduce quarterly dividend to 30 cents per share based on the significant decline in interest rates and uncertainties surrounding the current operating environment as well as our commitment to sustainably covering our dividend. This represents the first time, we have lowered the dividend, but we believe that this proactive steps.
As prudent based on the earnings power of the portfolio.
Third quarter dividend of 30 cents per share will be payable on September 30 to shareholders of record on September 16.
Turning to slide six.
And then update in our portfolio at quarter end, our portfolio had a fair market value of approximately $1.6 billion substantially unchanged from the prior quarter.
92% of our investments are in senior secured debt and are spread across a wide range of industries, while the impacts of the global pandemic have been pervasive.
We have limited direct exposure to sectors that have been more severely affected by the global shutdown.
Furthermore, our loans to companies and more impacted industries, including retail and airlines are supported by strong collateral protections and most of our investments in these industries continue to perform well.
Middle market companies serve as a vital role in our economy and employ about a third of the U.S. workforce. Our team is working diligently with our borrowers with a focus on the long term well being of these businesses.
For those borrowers that are more challenged our team has been working alongside management to help them adapt to the current operating environment for small number of borrowers. This included in making certain amendments, which help these borrowers managed through the initial shutdown and resulted in amendment fees of seven cents.
During the quarter.
In some cases, we're already seeing these businesses begin to stabilize as their customers recovered from the complete shutdown at the start of the pandemic.
And adapt to the current environment.
At the end of the second quarter. Our diverse portfolio included 101 companies are largest position represented only 4.5% to the portfolio and taken together or five largest positions represented 17.8%.
Furthermore, as the chart on the left side of Slide 11 illustrates our recurring income is not reliant on income from any one portfolio company in fact over half of our individual portfolio companies contribute less than 1% to our recurring income.
As of June 30, 92% of our debt investments for floating rate.
79% of these were subject to interest rate floors, all of which have now been triggered as a result of the decline in LIBOR.
Additionally, 82% of our debt investments consisted of first lien exposure is demonstrated on slide eight.
Moving onto our investment activity in the second quarter, we continue to prudently deploy capital.
In the second quarter, we deployed $56 million, including investments in five new loans three of which were with existing borrowers dispositions were $102 million for net dispositions of $46 million in the second quarter.
As we stated in the past follow on investments in existing portfolio companies continue to be an important source of opportunities from a risk management perspective. These are companies, we know and understand well.
Although our largest investment in the quarter alone to Cole Haan was a new investment for TCPC. This is a borrower or team knows well and as financed over a long period of time Cole Haan has performed very well over the last several years given broad appeal for its products.
Cole Haan also has a large presence online and a relatively small brick and mortar footprint. When the company look to enhance liquidity during the quarter, we were able to provide that liquidity given our history with the company in our relationship with the owners.
As we analyze new investment opportunities, we continue to emphasize seniority industry diversity in transactions, where we leader co lead negotiations on deal terms.
Our investment activity in the third quarter to date has included select new investments and a modest amount of draws on unfunded commitments.
Our focus for new deals is on companies that have faced minimal impact from cobot or our beneficiaries of the cobot impacted operating environment.
This positions in the second quarter include the payoff of our loan to discover work.
We also opportunistically reduced our exposure on several loans.
Investments in new portfolio companies during the quarter had a weighted average effective yield of 10.6%.
Investments, we exited had a weighted average effective yield of 9.3%.
The overall effective yield on our debt portfolio decreased to 9.8%, primarily reflecting the significant decline in LIBOR since the start of the year.
Partially mitigated by interest rate floors that were triggered as LIBOR decline and amendments made on a few loans to increase rates.
Between December 30, Onest 2018 in June Thirtyth, 2020, LIBOR declined 250 basis points or 89%. This put pressure on our portfolio yield and resulted in a nine cents per share quarterly degradation and recurring net investment income before incentives over.
Over this period, however exposure to any further declines in interest rates is limited.
As over three quarters of our floating rate loans are structured with LIBOR floors as demonstrated on slide nine of the presentation.
As shown on slide 14, while we're cognizant of the impacts that the current environment has had on BDC stock price performance recently.
Over the last eight plus years TCPC has returned in excess of $12 per share in dividends.
Translating to an annualized cash returned to investors of 9.9% and an annualized economic return on the Navy of 7.8% now I will turn the call over to Paul who will discuss our financial results in more detail.
Thanks, Howard and Hello, everyone. During the second quarter as Howard noted, we continued to enhance our strong capital and liquidity position.
Despite the current market disruption.
First we extended our SVP operating facility by another year to May 2024, and increased its capacity by an additional $30 million, while maintaining our low rate of L plus 200 basis points.
At June 30, we had available leverage of $328 million.
And a regulatory leverage ratio of 1.10 times debt to equity net of cash and pending trades.
Well within our two to one regulatory leverage limit.
Following the ended the quarter, we secured a 100 million dollar accordion feature on the asked VCP operating facility to facilitate future expansion.
We also replaced our TCPC funding facility with a new 200 million dollar facility with improved terms, a two year maturity extension to 2025, and a $50 million accordion feature while again, maintaining our low rate of L plus 200 basis points.
Combined we added accordions totaling $150 million since our last call.
Together these developments further strengthened our diversified and low cost leverage program.
Turning to slide 17, we generated net investment income in the second quarter of 36 cents per share, which again fully covered our second quarter dividend of 36 cents per share paid on June 30.
This continues our long contiguous history of covering our dividend with net investment income each quarter.
Investment income for the second quarter was 78 cents per share substantially all of which was interest income.
This includes recurring.
Cash interest of 59 cents recurring discount and fee amortization of four cents and pick income of six cents.
We had modest prepayments in the quarter that contributed to pay per share, including both prepayment fees and unamortized So I'd.
Investment income also included eight cents of amendment fees and other income and a penny of dividend income.
Our income recognition follows our conservative policy of generally amortizing upfront economics over the life of an investment rather than recognizing all of it at the time investment is made.
Operating expenses for the second quarter were 33 cents per share and included interest and other debt expenses of 18 cents per share.
Incentive fees for the second quarter totaled $5.2 million or nine cents per share.
Total net investment income of 36 cents per share.
As you may recall, because our annualized cumulative total return.
Fell below 7% at the end of the first quarter.
The incentive fee on first quarter income was indefinitely deferred.
However, the strong recovery during the second quarter brought our cumulative total return back above the 7% hurdle.
As a result, we incurred incentive fees attributable to both our second quarter earnings and the catch it for the first quarter. However, although our advisor earned the full catchup amount from the first quarter. We're voluntarily further deferring five six of the catch of amount to subsequent quarters, such that one sixth of the catch of amount will be payable each quarter.
Provided and only to the extent that our performance remains above our cumulative total return hurdle in each such quarter.
We believe this demonstrates our advisors confidence in our future performance.
And further aligns our advisors interest with those of our shareholders.
Accordingly incentive fees payable for the second quarter included only $600000 or one cents per share of catch up incentive fees.
Our net increase in net assets for the quarter was $46 million or 80 cents per share, which included net realized and unrealized gains of $25.3 million or 44 cents per share driven primarily by the market recovery in the second quarter. Following the covered related volatility earlier in the year.
Substantially all of our investments are valued every quarter using prices provided by third party sources, including quotations services and independent valuation services.
And our process is subject to rigorous oversight, including back testing of every disposition against our valuations.
Our highly diversified portfolio continued to perform well in this challenging market environment and we believe our overall credit quality is sound.
We placed our investment in one additional portfolio company last point solar on non accrual during the quarter.
Flashpoint had been in the late stages of obtaining equity financing, but the process was pulled as a result of covet.
Our team is working with the equity owner to find an alternative solution, which may include a monetization of the business assets and IP.
We now have loans to just three portfolio companies, including AG, why and Avanti on non accrual, which together represented 0.6% of the portfolio at fair value and 1.6% of cost.
Turning to slide 15, we had total liquidity of $348 million at quarter end.
This included available leverage of $328 million and cash of $21 million less net pending settlements of $1 million.
Additionally, our investments in unfunded credit facilities.
And delayed draw term loans to portfolio companies totaled just $46 million at quarter end or less than 3% of total investments.
With the extension and expansion of the SVP operating facility and the replacement of our TCPC funding facility with the new lower cost facility, our diverse and flexible leveraged program is even stronger.
As of June 30. This program included two low cost credit facilities, one convertible note issuance to straight unsecured note issuances and an ESP program.
Our unsecured debt continues to be investment grade rated by both Moody's and Fitch.
Given the modest size of each of our debt issuances, we are not overly reliant on any single source of financing.
And our leverage program is well laddered with no near term maturities.
Our nearest maturity is March of 2022, and this represented less than 15% of outstanding liabilities as of June 30.
Combined our outstanding liabilities had a weighted average interest rate of 3.53% down from 3.84% at the end of 2019.
I'll now turn the call back over to Howard.
Thanks, Paul there continues to be significant uncertainty about what the remainder of 2020 will look like however, the pace of new deals entering the market has picked up modestly.
And the deals in our pipeline are generally on more favorable terms than what we saw leading up to this period.
We are cautious in our deployment, but in a solid position to opportunistically invest.
In addition, we remained focused on the long term health of our existing portfolio companies with an emphasis on preserving capital for our shareholders.
We seek to invest in companies with strong management teams that are relatively well situated to perform through economic cycles.
Including periods of dislocation.
Our portfolio companies collectively employed thousands of individuals and provide necessary goods and services to their customers.
We are committed to helping our portfolio companies successfully navigate this period of dislocation, while continuing to deliver attractive returns to our shareholders.
Our performance to date and our confidence in our ability to succeed in this environment are driven by our teams two decades of experience in both performing and distressed credit.
The strength of our underwriting platform as well as the depth and breadth of the firm wide resources Blackrock in closing while these are challenging times for everyone. Our entire team is focused on generating strong risk adjusted returns for our shareholders.
And with that operator, please open the call for questions.
Thank you as a reminder to ask the question you will need to press star one on your total.
To address your question.
Okay.
Police and bodily component acuity wants.
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Our first question will decline Finian O'shea, one wants volumes acuity.
May begin.
Hi, good afternoon equivalence hanging in there.
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Howard first question on the five.
New loans you outlined.
I suppose the two part question I think there were three existing into new.
To start with the existing loans.
Can you describe the the nature where these.
With these portfolio add on acquisitions to support acquisitions.
And or another sort like a dividend recap and then second question.
On the new.
Loans.
That you took on this quarter assuming that they.
You began looking at them for underwriting after cobot started.
Now how would you describe this change in the level of competition.
In terms of.
Both financial capital and.
And number of firms that are at the table.
Thank you.
Sure fin thanks for joining us.
We are doing well here.
I'm going to address your questions first specifically and then turn it over to Raj for a little bit more market color since since I think you asked some important questions about both the environment.
And what we're doing with respect to our portfolio.
Loans that we made fall into a couple of categories. One of the more interesting ones was an existing portfolio company that had been for a.
Extended period of time been pursuing a strategic acquisition.
That was accretive to the business.
The.
Sponsors and owners of the business put in a significant multiple in the equity versus the amount of incremental debt that we advanced.
And we were very pleased because we think it enhance to both the business and the strength of our existing debt investment we're able to do it on new terms and we talked about the loan to cole Haan, which was another interesting example.
Great Company Big online business.
Navigating this environment, well relatively low leverage and that company actually has traded debt, but they were looking to put on incremental liquidity and do it with a single source that they do new well and we were able to provide that financing at 50% spread over where their existing too.
Rated debt is because they wanted certainty of execution. So we've been focused on doing things that we think are.
Value added that we can diligence well.
And that are appropriate opportunities for us in this dislocated environment I'll turn it over to Raj to maybe talk about the environment a little bit more generally yes. Thanks, then hopefully you can hear us all of US through these face masks that we are now as standard part of our earnings call.
In terms of the post covet environment activities.
Clearly post.
The start of that.
Spike in March if you will the volume has been lower it's clear it through our Q2 activities and into Q3.
I think also there are a few where you know act maybe not a lot fewer but certainly fewer active participants on the lending side.
Based on people working on their portfolios.
Capital constraints, if you will.
And at the margin, but there's also still good dry powder from a number of active participants and I think at the margin what we're seeing is for those companies that.
Our attractive in this environment those that are neutral to covert or even in some cases beneficiaries, which does characterize a lot of our portfolio.
There is active ability for people to pursue those names and I think on them on the margin things like covenant structures and things that normally were more discussion and negotiating items are a little bit more standard as part of the structure, but there is still competition for those companies that are attractive in this environment.
And I. Thank you.
It's sort of nets out being being at attractive environment, but think time will tell.
As we move forward through cultivated how far cobot extends.
Whether thats a good for the lender good for the bar, but right at the moment.
We are active we're seeing a pipeline rebuild we are focusing on companies that in many cases are similar to what we focused on pre cobot those that are less cyclical.
And very very sustainable and predictable earnings.
But there is still competition, particularly for those companies that stand well in this environment.
I had a lower volume overall that that's recovering but still lower than the pre cobot environment.
Okay. That's.
Helpful. Thank you.
Just.
Next question final question.
On the amendment discussion I think you said.
Eight cents a fees.
Which seems pretty heavy.
On a per share in the dollar basis, I think heavier than by most of your competitors. So.
Any color you provide there's data.
Functional.
You know tighter covenants are.
Being more proactive.
Or anything on the.
Portfolio performance side.
How would you how would you.
Guidance on that.
Yes.
Yes, thanks, thanks for focusing on that it's actually seven cents it does come from.
Several portfolio companies.
And I think you highlighted in your question.
The explanation, which is when we do our underwriting and draft our loans and set our covenants, it's based on expectations.
And as a result of the covert disruption.
Some companies Fortunately.
Small proportion of our overall portfolio, but some companies missed their numbers and head covenant issues and in connection with those our goal is to work with the management teams and portfolio companies too.
Make sure that they have a good path to recover but also gives us the ability to enhance our economics as we're working with those count companies in some cases there also.
Improvements to the loan documents in connection with them and in particular in March.
We saw some real disruption and a couple of businesses and Fortunately.
The one that was most impacted by this started to see recovery in April and its continued since then.
So its primary customer base has adjusted to the new environment.
Okay. That's helpful.
Thanks for taking my question.
Thank you for your questions.
Thank you next question good line of Chris Kotowski.
Let me begin yes, good afternoon.
Following up Vincent's question I mean is that.
Amendment activity continuing into the third quarter and is that something we should.
Expect for the next couple of quarters.
Given the stressed environment or or do you see the second quarter since really an exceptional.
Yeah.
So.
Through most of that for now.
So let me take out when Chris I think I guess, what I would just want to do is reiterate Howards point Howard made it is just operationally when we set our loans up at the front end we are believers that.
Having covenants and having real covenants is a good thing sometimes.
If a covenant is tripped or even an advantage of being tripped you'll have the discussion it really is the.
Our protection almost a circuit breaker to allow you to get back to the table and do a whole host the things that maybe tightening up the DOCSIS Howard said it may be enhancing economics.
And maybe in advance of a rail problem.
Having the owner of the business or the sponsor addressed the problem in advance whether it's through capital or other actions. So I don't think we take the view that.
Covenants or covenant based discussions.
Is necessarily a bad thing, it's actually meant to prevent.
Bad things in the portfolio. So to your question. However, the activity has certainly abated I think in Q2, the the broader reset around Cove. It was more extensive for every company even those that are still growing.
And then as we come into Q3, I wouldn't say, it's zero activity. There are some additional dialogues again, we're going to use those discussions to make sure. We are well protected and in certain cases enhancer economics, which is the case at one of our portfolio companies that's ongoing today a public company.
But but it's certainly has come off a little bit how it proceeds through the rest of the year is I think a question of how cold it extends which we really can't answer, but we do feel good about state of the portfolio. We do feel good about having real protections across most of the for the majority of the portfolio with covenants and real loan docs.
And when we need to use those as we did in Q2 two art.
Protection our advantage, we will continue to do so.
Okay.
And then I guess just.
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You de Levered slightly this quarter I mean.
Obviously, you had the appreciation in NAV and investments came down slightly.
Should we expect the overall portfolio.
Remain roughly flattish versus.
Assuming that we're sort of in this.
Half open the has closed kind of limbo.
For another.
Quarter or to at least.
Yes.
Chris Youve been following us.
Since since we went public and I think as you know and many of our other longtime shareholders know.
We don't set up from targets for Legg leverage we're very cognizant.
About the way, we approach risk Weve got to balance sheet that well diversified with a half dozen sources of financing. We're very pleased with the new facility. We just brought on.
Together with a $150 million of incremental aggregate accordion capacity from our two facilities.
But we don't like to set sort of artificial targets because as we saw in Q1, you can get movements in NAV, although that was certainly an outlier in an exception and you can also be in a position, particularly in this more disruptive environment, where you think you're going to close things that don't close or things that are supposed to get paid off get pushed in fact that has.
Happened to us.
Both at the beginning of the year and in Q2, we are things that we're we're supposed to close slipped and so we don't target a hard level, we're very comfortable with our current leverage we did think it was important coming out of Q1, particularly with the disruption to take it down.
Some.
And so that's why we controlled both our new investments and we also did some selective.
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Sales.
Position the portfolio, we think in a good place where it is today, where we have significant liquidity, we're comfortable with our leverage and we're in a position to do good deals as they come in but don't have any artificial pressure to do things.
Okay.
And then the one thing.
I was wondering about is.
On the can you remind us where you stand on the Sps I notice that like this facility drawn on it since.
I think the middle of last year, some time and.
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And you just to remind us where are you.
You had applied for an additional licensing Toughmet Green light letter.
Yeah, right now right now we've got a 138 million drawn on the SP debenture out of 150 and currently recycling we had one one investment come off in the quarter one come back on as we still have a little bit room will we we invest as we see opportunities that are appropriate for the portfolio not necessarily.
I will keep the not necessarily to put into the SPR separate.
Specifically.
But as that fills up yet, we'll we'll examine an additional certificate.
And Chris the SBK isn't large enough to have a statistically meaningful.
Portfolio, but what we have found and this may be more coincident just because of the size is that the investments. We've had in there tend to repay more quickly probably than our average so theres a lot of recycling activity. When you look at the aggregate draw youre not seeing necessarily woods.
What's going on in the underlying portfolio, which is a lot of.
Hey, paid paybacks and and pay offs.
Along with replacement assets.
Okay and just thank you that's that's it for me.
Thank you.
Thank you as a reminder to ask a question that star one.
Our next question on topline, Matt Jayden from Raymond James.
I will begin.
Hi, everyone just too to start off to follow up on the amendment questions.
Would you be willing to give any.
Any commentary on the number of portfolio companies that took amendments over the quarter.
Sure happy to do sell and thanks for joining US we had 11 portfolio companies that had amendments during the quarter.
Out of out of 101 at the end of the quarter should we had a few more than that going into the quarter. So you can think of it as being between 10, 11%.
Okay, and then I guess secondly.
Any update you can give on the airline book.
Especially kind of how collateral values against the loans are holding up given some some pressure in the industry.
Sure happy to do that.
We have.
Two primary loans are long time.
Hum.
Lease with United was repaid in full.
But something that we've actually been financing United planes and so nine.
We're pleased to have that those of all paid off.
We have loans to Mesa and two one sky in the case of Mesa, there a regional operator they.
Connect jet service to American and United feeding into their hubs, they've obviously been impacted that dramatically they have gotten federal money under the carriers Act.
The loans continue to perform fully on amortization and interest of course, we all know the sector has been impacted we do think our approach to underwriting.
Focusing typically on somewhat older equipment. These are all backed by assets and engines.
Has proved highly effective since we started in this business of financing planes and playing parts since 2003.
But clearly there is some disruption there with respect to one the sky.
Which is the second largest operator of private aviation in the country.
Their business has picked up considerably.
If you look at data that's publicly available.
Flight data you can see that there is a significant increase in private aviation, particularly coming out of.
The beginning of the last quarter.
Okay. That's helpful. Then just the last one for me from our into kind of seems the board elected to set the dividend at a level ownable with with little to no prepayment or amendment fees. I guess first question is that fair to kind of think about from our end and then the second question being if thats correct.
What are the expectations for prepayment and amendment activity in the in the near to midterm.
Sure, Yes, our prepayment activity.
Has averaged four to five cents quarter over quite an extended the pure period of time.
There is clearly variance there we had record low activity in Q1, which was unusual.
I would note that theres, probably some historic seasonality to Q1, it tends to be a slower quarter for us generally.
And this particular quarter. It was obviously heavily impacted as some things that we expected to happen and and get repaid didnt happen.
But repayments and fees are lumpy.
And.
We.
We'll give a data on what they've been historically, but don't try and project them in the future.
The board gave significant thought to setting the dividend level, we recognize it's very important to all of our investors and we know that investors have taken comfort from the fact that in the eight plus years since we've been public Weve always earned our dividend.
And we wanted to set it at a level that we believed would be sustainable based on on or information about the current operating environment met I would I would also add to that just just as we noted in the in the script LIBOR has come down quite a bit over the last six quarters and our run rate.
It's had an impact about nine cents before incentives on the run rate. So I think thats important to keep in mind and that was the primary factor to consider in.
Resetting the dividend.
Great. That's it for me appreciate the helped.
Thank you.
The next question it sounds line of George Mohamad Andas from Deutsche Bank, Sir you may begin.
Hi, good afternoon.
My questions have been asked and answered said somewhere here for you.
Sorry, if I missed this but are you able to disclose pricing for the loans sold into Q relative to our value.
Yes.
That that's not a disclosure we provide.
But we were pleased with the prices that we achieved on those loans yield. This is Paul you'll probably notice we had for the for the second quarter. We had 415 $416000 of realized realized losses. There are some up some down it was kind of a mixed but roughly flat.
Great. Thank you for that.
And.
My other ones on the LIBOR floors. You also disclosed you kind of weighted average LIBOR floors across the portfolio you provide a range here and the deck, but wondering if you do disclose the kind of weighted average.
Yeah. This is Paul our weighted average is 1.1.
1.1 area.
Okay. That's it for me today appreciate you taking those thanks. Thank you for your questions.
Thank you.
And I'm not showing any further questions at this time alright, just on the call back over to Howard Levkowitz for any closing remarks.
We appreciate your questions in our dialogue today I'd like to thank all of our shareholders for your confidence in your continued support and our experienced and talented team of professionals at Blackrock TCP Capital Corp. For your continued hard work and dedication in these challenging times. Thanks again for joining US This concludes.
Today's call.
Ladies and gentlemen, this concludes todays conference call. Thank you for participating.
Now disconnect.
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