Q3 2020 BlackRock TCP Capital Corp Earnings Call
[music], ladies and gentlemen, good afternoon, and welcome everyone to Blackrocks TCP Capital Corp, third quarter 2020 earnings Conference call.
Today's conference call is being recorded for replay purposes.
During the presentation, all participants will be listen only mode. A question and answer session will follow the Companys formal remarks to ask a question. Please press the sparky followed by the digit one hour.
What do you see this instructions before they begin to kidney section and now I would like to turn the call over to PT Mclean director of Blackrock TCP Capital Corp, Global Investor Relations, Steve keep please proceed.
Thank you great before we begin I'll note that this conference call may contain forward looking statements based on the estimates and assumptions of management at the time of 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.
Earlier today, we issued our earnings release for the third quarter ended September 32020, we also posted a supplemental earnings presentation to our website at TCP capital Dotcom to view the slide presentation, which we will refer to on today's call. Please click on the Investor Relations link and select events and presentations he thought.
You mentioned the reviewed in conjunction with the company's form 10-Q, which was filed with the FCC earlier today I will now turn the call over to our chairman and CEO Howard Levkowitz. Thanks, Katie and thank you for joining US today first and foremost we hope everyone is healthy and safe.
There are several members of the TCPC team on the call with us, including our President and COO Raj Vig and our CFO Paul Davis.
I will start with an update on our portfolio and key highlights from the third quarter Paul.
Paul will then review our financial results as well as our liquidity position after that I will provide some closing comments before opening the call to your questions start.
Starting on slide four our.
Our portfolio continues to perform well despite the significant headwinds caused by the pandemic.
Our third quarter results reflect further improvement in credit markets and spreads following the significant dislocation that occurred in the spring.
Our net asset value increased 4.1% from the prior quarter, reflecting a 1.8% that mark good value gain on our investment driven by spread narrowing on middle market private credit transactions as well as improved financial results for several portfolio companies importantly, the.
Overall credit quality of our portfolio remains strong.
As of September 30, total non accruals were only 0.6% of the portfolio at fair value.
This is a testament to our disciplined approach to underwriting or more than 20 years of experience lending to middle market companies and the strength and breadth of the Blackrock platform.
Also during the quarter we.
We further strengthened our capital and liquidity position by Opportunistically issuing a $50 million add on offering to our outstanding 3.9% notes due in 2024.
This complements the actions we took earlier in the quarter to enhance our credit facilities by replacing or funding facility, one with the new facility on more favorable terms as well as adding $150 million in aggregate accordion commitments.
We truly value and appreciate the strong longstanding relationships, we have with our lenders today, we declared a fourth quarter dividend of 30 cents per share payable on December 31, 2020 to shareholders of record as of December 17, and in line with the third quarter dividend of 30 cents per se.
Share paid on September Thirtyth.
We are committed to paying sustainable dividends and continuing our track record of having covered our dividend every quarter as a public company.
In the third quarter, our dividend coverage ratio was 117%.
Turning to slide six and an update on our portfolio positioning at quarter end or portfolio had a fair market value of approximately $1.6 billion substantially unchanged from the prior quarter, 91% of our investments are senior secured debt and are spread across a wide variety of industries.
We have a diverse portfolio of companies with an emphasis on less cyclical businesses with limited direct exposure to sectors that have been more severely affected by the pandemic.
Furthermore, our loans to companies and more impacted industries, including retail and airlines are generally supported by strong collateral protections and most of our investments in these industries continue to perform well as an example, the value of our investment in one sky. The second largest provider of private jet aviation services in the country appreciated during the quarter.
Based on strong performance, resulting from increased charter flight activity.
At the end of the third quarter, our diverse portfolio included 101 companies, our largest position, which represented only 4.5% of the portfolio is an equipment leasing company that itself has a highly diversified underlying portfolio of leased assets.
As the chart on the left side of slide seven 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 September Thirtyth at 92% of our debt investments were floating rate 80.
82% of these were subject to interest rate floors, all of which are now in effect. Additionally, 82% of our debt investments are first lien as demonstrated on slide eight moving.
Moving onto our investment activity.
We continue to prudently deploy capital in the third quarter, we invested $79 million, including investments in eight new loans half of which were with existing borrowers follow.
Follow on investments in existing portfolio companies continue to be an important source of opportunities from a risk management perspective that these are companies, we know and understand well dispositions in the quarter were $89 million for net dispositions of $10 million.
As we analyze new investment opportunities, we continue to emphasize seniority in the capital structure industry diversity in transactions, where we act as a leader co lead are.
Our largest investment during the third quarter, a senior secured first lien term loan to metric stream demonstrates this emphasis on transactions where blackrock.
Teams Act as a lead lender.
As well as our team's deep industry knowledge and experience investing in software companies.
Metric stream is a leading software provider of integrated governance risk management and compliance solutions. The company has strong equity sponsorship and is benefiting from the increased awareness and emphasis on managing risk in response to the global pandemic.
Metrics stream reached out to Blackrock directly based on our reputation in the market and experience investing in similar companies as a result, our team acted as sole lender in the transaction.
Our investment activity in the fourth quarter to date has been selected and focused on companies that are minimally impacted by the pandemic or are beneficiaries of the cobot impacted operating environment.
Dispositions in the third quarter included payoffs of our 29 million dollar loan to Inmobi Arse 16 million dollar loan to American broadband and the refinancing of our 11 million dollar loan to pull secure we also restructured our investment Nadery, why which monetized a portion of our loans, while maintaining ongoing upside potential through a small.
Preferred equity position.
Investments in new portfolio companies during the quarter had a weighted average effective yield of 9.5%.
Investments, we exited had a weighted average effective yield of 8.8%. The overall effective yield on our debt portfolio increased to 10%, primarily reflecting amendments made on on several loans, coupled with the higher yield on originations versus exits.
Since the end of 2018, LIBOR declined 257 basis points or by 92%, which put pressure on our portfolio yield over this period. However, our portfolio is largely protected from any further declines in interest rates as over 80% of our floating rate loans are currently operating with LIBOR.
Floors as demonstrated on slide nine finally.
Well, we are cognizant of the impact that the current environment has had on an industry wide BDC stock price performance. Our focus has always been on delivering consistent returns to TCPC shareholders across market cycles and over the long term.
As you can see on slide 14, TCPC has returned in excess of $12 per share in dividends over the last eight and a half years, which translates to an annualized cash return to investors of 9.9% and is reflective of our return on invested assets of 10.3% since our IPO TCPC has concern.
Distantly outperform the Wells Fargo BDC in the index now I will return to turn the call over to Paul who will discuss our financial results in more detail Paul Thanks, Howard and Hello, everyone.
During during the third quarter as Howard noted, we continue to enhance our strong capital and liquidity position.
First and in August we replaced our funding facility with a new 200 million dollar facility with improved terms, a two year maturity extension to 2025 and $50 million according to them in a.
Well again, maintaining our low rate of LIBOR, plus 200 basis points.
Combined we now have accordion commitments totaling $150 million.
Additionally in September we Opportunistically raised an additional $50 million of our 3.9% notes due 2024.
Bringing the total issuance to $250 million.
With the new unsecured notes.
82% of our assets were supported by unsecured debt equity and our SP debentures, which are excluded from regulatory leverage calculations.
This allows our secured credit facilities to be significantly over collateralized.
Which helps ensure that we have ample liquidity in a broad range of market conditions.
At September 30, we had available liquidity of $253 million and regulatory leverage ratio of 1.05 times.
Debt to equity net of cash of 35 million and pending trades.
Which was down from 1.10 time at times at June 30, and is well within our two to one regulatory limit.
Our unsecured debt continues to be investment grade rated by both Fitch and Moody's.
Turning to slide 18, we.
We generated net investment income in the third quarter of 35 cents per share, which exceeded our third quarter dividend of 30 cents per share paid on September 30.
This extends our continue his track record of covering our regular dividend every quarter.
Investment income for the third quarter was 74 cents per share. This included recurring cash interest of 54 cents recurring discount and fee amortization of six cents and Pik income of six cents.
We had modest prepayments in the quarter that contributed three cents per share, including both prepayment fees and unamortized So I'd.
Investment income also included three cents of other income and two cents 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 third quarter were 31 cents per share and included interest and other debt expenses of 17 cents per share.
Incentive fees in the third quarter included $600000 of catch up fees until.
And totaled $5.0 million or nine cents per share for total net investment income of 35 cents per share.
As noted in last quarter's earnings call five six of the catch a portion of incentive fees earned in the second quarter were deferred over the subsequent five quarters subject to our performance remaining over our total return hurdle.
We believe this further aligns our interest with our shareholders and demonstrates our confidence in the strength of our portfolio and its earnings capacity over time.
Our net increase in net assets for the quarter was $49 million or 85 cents per share which.
Which included net unrealized gains of $48.6 million and net realized losses of $18 million.
Net realized losses during the quarter were comprised primarily of the restructuring of our investment in AG why as Howard noted earlier.
Unrealized gains in the quarter included spread equally spread tightening during the quarter following the dramatic spread widening in volatility that occurred during the spring.
As well as improved performance at several portfolio companies.
Unrealized gains included $6.9 million of appreciation in the value of our investment and Bentem and $4.4 million of appreciation on our investment in one sky.
Howard discussed the strong performance at one sky as charter flight activity has outpaced expectations.
And I had mentioned continues to benefit from a shift toward online learning that has accelerated in the current environment.
Substantially all of our investments are valued every quarter using prices provided by independent third party sources.
Including quotation services and independent valuation services.
And our process is subject to rigorous oversight include.
Including back testing of every position disposition against our valuations.
Our highly diversified portfolio continued to perform well even in this challenging market environment and our overall credit quality is sound we.
We have loans to just three portfolio companies on non accrual glass point.
BT and Avanti.
Which together represented only 0.6% of the portfolio at fair value and 1.2% of cost.
I'd be tea, which is new this quarter is a leading global provider of immigration and visa services for corporations and individuals.
And the company has been challenged given the current slowdown in international travel.
Turning to slide 15, we had total liquidity of $253 million at quarter end. This.
This included available leverage of $224 million and cash of $35 million less net pending settlements of $6 million.
Additionally, our investments in delayed draw term loans and unfunded credit facilities to portfolio companies total just $51 million at quarter end or 3% of total investments of which only 19.8 million was revolver commitments.
With our new lower cost funding facility.
Increased accordion commitments.
And additional unsecured notes.
Our diverse and flexible leverage program is stronger than ever.
As of September 30. This program included two low cost credit facilities.
Convertible note issuance.
Two straight unsecured note issuances and an SP program.
Given the modest size of each of our debt issuances, we are not overly reliant on any single source of financing at our leverage program is well laddered with no near term maturities.
Our nearest maturity is March of 2022, and this represents less than 15% of outstanding liabilities as of September 30.
Combined our outstanding liabilities had a weighted average interest rate of 3.3%.
Down from 3.8% or 51 basis points since the end of 2019.
I'll now turn the call back over to Howard Thanks, Paul while the economic outlook is uncertain. Our team is focused on delivering the results our shareholders have come to expect from TCPC.
The overall market environment has continued to improve following the significant dislocation that occurred in March and middle market companies overall have performed better than market expectations. While deal volumes remain below pre cobot levels. We are seeing a pickup in activity and the deals in our pipeline are generally on more attractive terms.
Firms, we remain extremely selective in this environment executing on only a small number of opportunities we review and focusing on companies. We believe have minimal cobot exposure or those that are positioned to outperform in this environment. We also remain focused on companies in industries, we know well and on transactions where.
Our team leads or co leads negotiations to ensure deal teams and structures include appropriate creditor protections are.
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 of Blackrock in closing while these are challenging times for everyone.
And our entire team is focused on generating strong risk adjusted returns for shareholders.
And with that operator, please open the call for questions.
Certainly ladies and gentlemen, if you have a question at this time. Please rest of Argenta number one key on your Touchstone telephone. If your question has been answered or you wish to remove yourself from the queue. Please press the pound.
Your first question comes from the line of Chris Kotowski from Oppenheimer. Your line is open.
Oh.
Yes.
Thanks for taking my question.
How long is that better.
Can you good yes, okay. Good.
Good.
[music].
First of all I guess.
I was wondering on the kind of the relatively outsides levels of dividends and.
And other income is there any story there or should we just expect that to kind of normalize next quarter.
Yes.
Chris Thanks for the question as I think you and others, who have followed us for a long time are aware.
Our other income is lumpy it comes from different sources.
We do have income in connection with some amendments of.
Hub of.
Relationships with portfolio companies and.
In this case.
Yes.
The biggest contributor which from a company that's performing well in fact.
And requested an extension of the credit agreement.
We also have a.
Dividend income that we get from portfolio companies as well.
Okay.
And then I know you've had the slide in there I just wanted to make sure I'm interpreting it correctly, but slide nine on your interest rate sensitivity.
Where you say that the cumulative decline in LIBOR.
Amounted to nine cents per share before incentive fees. So I mean, just to kind of get the Bottomline Eni impact I would just.
Take that number and multiply by 0.8, right. So it'd be like seven cents yeah.
Yeah, that's correct okay.
Yes, seven eight cents something like that Okay, and then lastly, I guess, the one new non accrual.
See IBT I don't know what you can say about it but it had been significantly mark.
Last time.
It was it was there an event or what.
What color can you give us some on on.
The.
The decline there and then I guess on the flip side.
You said you took a preferred holding for AG why does and that it has upside does that have a convertible feature or is it just straight preferred.
Sure in reverse order with respect to age you why there is upside in our remaining position in AG why it is a small position though for for clarity.
With respect to see IBT, it's a very good business, but it is dependent on global travel and in connection with the Companys performance, which is significantly depending on the level of global travel, particularly.
In and out of Asia, and China more specifically.
Yeah, we reached the conclusion that it was appropriate for it to go on non accrual.
Okay.
And then.
Just in general any thoughts on that.
Significant deal activity coming back in and driving.
Driving volumes.
[music].
We can see dealogic numbers for announced M&A. They seem to have picked up in the last couple of weeks or months.
Are you seeing that in your market as well.
Yes, Hi, Chris its Raj I'll take that one we we are seeing a pickup in deal activity.
I think we also are as I commented on the last call seeing good competition out there private capital.
Asset class.
I think generally has navigated this environment well I think it's a testament to the business model.
But we also are not saying we're.
We're saying no a lot I think terms are competitive for certain companies people are.
Whether it's pricing or structure is doing things that we're not ready to sign up for so while they inbound activity has certainly picked up as well as the deployment.
I know that they're necessarily one for one correlation and that's not a bad thing were just were maintained discipline and where.
Doing what we feel comfortable with and.
And hopefully as we make it through the election cycle and the end of this year, we'll see that continuing but.
But to answer your question, yes, there has been a pickup in deal activity from from our perspective.
Okay.
And I guess I'll leave it there, but somebody else asked some questions. Thank you.
Chris Thanks for the questions.
Thank you. Our next question comes from the line of senior or She's from Wells Fargo Securities. Your line is open.
Hi, Thanks, Good afternoon, just the first the follow on.
For the IGI why reorder restructuring was there any.
No money in or money out there to do that company receive another investor or did you.
Just reorg your your debt to equity or any color you can provide there.
Sure.
Hey, Hey, Gee why is a fundamentally good business, but it has struggled with the cost of one of its major inputs rhodium and we reached the conclusion that it was more appropriate to.
Let a third party come into the business and pay down our position and sell down significant part of our economics and retain.
Small preferred upside.
Okay. That's helpful and then just.
For our call on on the unsecured.
Sure I think closed post quarter.
Any comment on.
Obviously this is.
Sort of an opportunistic availability to you as you may see it.
Hey comment on how much more unsecured you might do.
Given that given the availability and that being a large.
Fortunately your capital structure should we expect more.
More to come if the market stays this way.
Yes, Ben Thanks for the question.
We have been very careful in how we think about building out the liability side of our of our balance sheet as I think you're aware we.
We added to the note issue you just referenced we have two other unsecured note issues, we have long term SP a facility and we have two distinct credit facilities, one of which.
<unk> increased in the spring the other which we replaced they both have accordion features.
It is by intent that we fund the balance sheet with six different sources no one of them.
Very large in relationship to our asset backed by base. We think it's important to have staggered funding by maturity and sources.
As a way of managing our balance sheet and positioning us so that we can be opportunistic.
As we invest into book deploy capital without having to be overly concerned about any given tests from particular lenders.
Okay. That's helpful. Thanks for taking my questions.
Thank you.
Your next question comes from the line of Christopher Nolan from Ladenburg Thalmann. Your line is open.
Hey, guys.
Cowell solar holdings it.
Matured on 930 20 were those loans paid off.
Hi.
Carlos Solar holdings is part of a larger.
Series of Securities, including coal energy and the answer is nuanced because some of the loans and certain regions were paid off.
The conduit loans Carla the.
The covered loans I believe we're also paid off and then what's remaining is some of the equity that was converted into APEC region, which is the outstanding position. So the loans that were paid off or no longer on that.
The balance sheet.
And there were a number that were successfully completed what remains is simply the equity position.
As part of a conversion in Asia, that's in a runoff mode that we talked about a few times in the past I.
The primary asset is also an operating facility that we expect to exit at some point.
In the near future as we as we're going through a process there and Raj is that Asian affiliate closure Con energy Asia and correct.
Okay correct.
Last quarter that particular credit spread of 10% toll couponing zero now the spread to zero the toll couponing zero.
And there's $2 million on a cost basis, but.
Why.
Yes.
Zero coupon.
Hi, essentially essentially that the collateral that business is the asset. So the way we think about it is we have a preferred position on the remaining business. We are the sole lender with the asset that's marketed for sale. So I think at some level its form over substance and.
We are the sole capital party there.
I think the zero interest really just you should look at it as something that's essentially held for sale.
You know.
That form up the security.
Okay. Thanks for the clarification.
Your next question comes from the line of Ryan Lynch from KBW. Your line is open.
Hey, good afternoon, and thanks for taking my questions.
The first one.
You had eight new loans this quarter about half of new borrowers you mentioned metric stream.
And the software provider.
When you guys are sourcing deals for new companies in this environment as deal activity starts to pick up are you focusing more on really tight extensively position businesses that are really colgate resistant or you guys looking to add on additional risk at this point in the cycle again were.
Still very uncertain out there.
But but where there is a little more certainty about how the economy is today.
Yeah.
I'll take that one and.
Others may add on to that comment but.
So we are generally even pre co that have always viewed our efforts as being focused on companies that are more defensive let's.
Less cyclical or a cyclical.
Act and sometimes we'll focus on really asset collateralized fitness.
Fitness or alone French.
For instance, in the aircraft financings or some of the.
Asset backed loans, we've done in the retail area. If there is in fact, a more cyclical broader business.
That has not changed through Covanta, if anything the approach you know as we as we've taken a historically I think in many ways is validated through co that you have seen a very stable portfolio quarter over quarter.
I think that the lens, perhaps titans because there's some businesses at the margin.
Our performing better or benefiting from Covance. Some are more neutral, but overall our approach has always been to be maybe focusing on defensive businesses, where we have good revenue and earnings visibility those happen to be businesses that.
I would say that we benefit but are more defensive in corporate as well and so that that approach and that that philosophy will continue.
We also agree that things are relatively uncertain.
In various ways and we're more inclined to be defensive both in structure.
And then where we want to be in a capital structure versus venturing out on the risk curve and I think that is.
That has done well for us through this point in time, and we're going to continue that approach.
Until such time, we feel out stretching on the on the risk curve makes sense, but that given the uncertainty. We are generally the same mindset as your comment about the environment.
Okay.
I think given the level of uncertainty that you guys certainly feel about the economic environment.
Adding on some more unsecured debt I would say that the weight.
To build up the durability and diversification of your liability structure would just probably.
Something you can do to.
On a little bit more on the defensive side you guys talked about deal activity picking up as we've heard other bdcs safe.
Save for pent up demand and potentially some stuff around the election.
Is it your anticipation that if you guys do have a robust pipeline of deal flow would you guys. One two and intend to grow the portfolio further from here and increase the leverage level you guys are seeing the right amount of deals or is that the intent.
What the deal volume shows that you guys are trying to.
Have a more conservative balance sheet, and we keep leverage here, even pushing well.
Yes. So thank you for the question the conservatism starts with the assets themselves and as Raj talked about.
Although we reserve some room to do some things that may be.
Slightly.
Yes.
They have more impacted the focus of building the assets in our portfolio loan by loan is in durable businesses and structures and we have a liability structure.
Gives us a lot a lot of flexibility it gives us the ability to add and reduce leverage and so the way. We think about it is we're doing good loans when they come to us and not trying to hit some.
Artificial target for the amount of leverage we have on the portfolio, but always mindful of maintaining significant cushions, we've been running.
TCPC has been public for eight and a half years, but we've been running leveraged funds for over two decades, and we're very mindful of the benefits of having leverage.
And respectful of making sure that we use it in a prudent fashion and so we have the flexibility.
To put on more assets than we do do that from time to time, but the way. We think about it is we really look at it on a deal by deal basis first.
Okay fair enough.
One last one from me you gave some good commentary on on one sky.
The increased demand for charter flights, making that gives me some more favorable business to be in.
I was wondering if you just get a quick update on on Mesa Air Entre reduction.
Different business subset of the airline space it looks like the valuation held up pretty well this quarter, but just given that backdrop with that industry I mean any update on that.
Yes. Thanks for the question we continue to be.
Very comfortable.
With me.
So clearly the airline industry is has been dramatically impacted.
But the way we under wrote that loan was to focus on what we thought were durable assets.
And and good attachment points.
They have gotten a significant aid from the government.
We think they continue to be important to the functioning.
The major carriers.
Hubs they serve.
Clearly the whole industry is under.
A fair amount of stress as our valuations in the industry.
But our loan is structured to.
Our loans are structured to amortize and.
We are pleased to date.
The company's performance and remarkably tough environment.
Okay.
So that.
Appreciate you guys, taking my questions. This afternoon, and congrats on a really nice quarter.
Thank you very much and.
Thank you for your questions.
Thank you and our next question comes from the line of Matt Jayden from Raymond James Your line is open.
Hi, all afternoon, and thanks for taking my questions.
Howard I appreciate the commentary on deal flow towards the end of the call just to clarify when you say terms are more attractive than kind of pre cobot levels is that on on all fronts say, if we look at covenant quality underlying leverage in spreads are all of those improved versus pre corporate levels or is that just kind of one or another.
Yes look theres variability.
Generally speaking, we're finding terms more attractive.
And.
More ability to.
Drive a stronger dollar.
Documents.
And better protected packages.
With respect to pricing.
In general deals deals are bit wider you can see from.
Our additions versus exits last quarter. There is there's a bit of a pickup we always caution don't read too much into one quarter or it was a fairly small number of the investments that are coming on or off the balance sheet.
At the same time, there's some deals in the market that are remarkably competitive and tight.
Pricing.
And I think you can see that in both the.
Public markets in our and our markets.
Where you've got some tightening on summit.
Companies that people are really chasing after and at the same time, you're starting to see some deals get pooled and lender pushback in the public markets and that same dynamic is going on in the private markets.
Where we believe we have the ability to.
Well continue to push back on things.
And drive some overall better terms.
Than we were seeing go before going into the crisis.
Great I guess second one for me then so kind of the second quarter that prepayment fees have been lower than that historic four to five cents range any visibility you can provide on kind of when we might expect prepayment activity to pick up more in line with that historic range.
We appreciate the desire to projected and model it.
It is lumpy.
And including in a way in Moby, which paid off this past quarter had.
It's supposed to pay off the two quarters prior to that in.
331 was disruptive it.
It paid off Joe first.
First week of July instead of 630, I use that as an example, so.
As a company we knew was refinancing and it took three quarters.
On a reporting basis to get there and so we have that across the portfolio and it's not uncommon. We've had years, where we've had multiple credits repay on the last business day of year end, including some we weren't sure whether they were going to make it into the present year or the next year.
It's the nature of the business at least that's the way these are be spoke transactions.
With individual borrowers are not capital markets transactions, so often when they're refinancing us.
There's a counterparty on the other side, who may or may not get there with respect to their timing on in a given timeframe and people are trying to manage it to hit the quarter necessarily.
So we think if you look back over a long period of time, that's probably a pretty good indication.
But there is a seasonality to some small extent and clearly in a co bid environment.
There are other externalities that are impacting people's decision, making as well.
Okay, and then just a quick one lastly for me alright.
You said last quarter, there was about 11 portfolio companies that took loan amendments over the quarter.
Would you be willing to say what it was for three Q.
Yes, it was remarkably similar this quarter by coincidence.
That is it for me appreciate it.
Thanks for the questions.
Thank you I'm showing no further questions at this time I would not I would now like to turn the conference back to Mr. Howard Levkowitz for any closing remarks.
[music].
Thank you I'd like to thank all of our shareholders for your confidence and your continued support I would also like to thank 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 todays call.
Paul.
Thank you ladies and gentlemen. This concludes today's conference call. Thank you all for joining us on the all disconnect.
[music].