UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

xQuarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the Quarter Ended March 31, 2015

 

¨Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Commission File Number: 814-00899

 

TCP CAPITAL CORP.

(Exact Name of Registrant as Specified in Charter)

 

Delaware   56-2594706
(State or Other Jurisdiction
of Incorporation)
  (IRS Employer
Identification No.)

 

2951 28 th Street, Suite 1000
Santa Monica, California
  90405
(Address of Principal Executive Offices)   (Zip Code)

 

Registrant’s telephone number, including area code (310) 566-1000

 

Securities registered pursuant to Section 12(b) of the Act:

 

Common Stock, par value $0.001 per share   NASDAQ Global Select Market
(Title of each class)   (Name of each exchange where registered)

 

Securities registered pursuant to Section 12(g) of the Act: None

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days: Yes x No ¨

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer ¨   Accelerated filer                x
     
Non-accelerated filer   ¨   Smaller Reporting company ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

 

The number of shares of the Registrant’s common stock, $0.001 par value, outstanding as of May 6, 2015 was 48,959,363.


 
 

 

Table of Contents

TCP CAPITAL CORP.

 

FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 2015

 

TABLE OF CONTENTS

 

Part I. Financial Information  
     
Item 1. Financial Statements  
  Consolidated Statements of Assets and Liabilities as of March 31, 2015 (unaudited) and December 31, 2014 2
  Consolidated Schedule of Investments as of March 31, 2015 (unaudited) and December 31, 2014 3
  Consolidated Statements of Operations for the three months ended March 31, 2015 (unaudited) and March 31, 2014 (unaudited) 13
  Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2015 (unaudited) and year ended December 31, 2014 14
  Consolidated Statements of Cash Flows for the three months ended March 31, 2015 (unaudited) and March 31, 2014 (unaudited) 15
  Notes to Consolidated Financial Statements (unaudited) 16
  Consolidated Schedule of Changes in Investments in Affiliates for the three months ended March 31, 2015 (unaudited) and year ended December 31, 2014 37
  Consolidated Schedule of Restricted Securities of Unaffiliated Issuers as of March 31, 2015 (unaudited) and December 31, 2014 39
  Consolidating Statement of Assets and Liabilities as of March 31, 2015 (unaudited) and December 31, 2014 41
  Consolidating Statement of Operations for the three months ended March 31, 2015 (unaudited) and March 31, 2014 (unaudited) 43
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 45
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 57
     
Item 4. Controls and Procedures 57
     
Part II. Other Information  
     
Item 1. Legal Proceedings 58
     
Item 1A. Risk Factors 58
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58
     
Item 3. Defaults upon Senior Securities 58
     
Item 4. Mine Safety Disclosures 58
     
Item 5. Other Information 58
     
Item 6. Exhibits 58

 

1
 

 

TCP Capital Corp.

 

Consolidated Statements of Assets and Liabilities

 

   March 31, 2015   December 31, 2014 
   (unaudited)     
Assets          
Investments, at fair value:          
Companies less than 5% owned (cost of $1,154,756,422 and $1,097,181,753, respectively)  $1,138,239,134   $1,081,901,384 
Companies 5% to 25% owned (cost of $52,944,887 and $52,103,511, respectively)   49,575,026    48,716,425 
Companies more than 25% owned (cost of $39,619,392 and $40,213,258 respectively)   15,530,356    15,918,077 
Total investments (cost of $1,247,320,701 and $1,189,498,522, respectively)   1,203,344,516    1,146,535,886 
           
Cash and cash equivalents   25,565,547    27,268,792 
Deferred debt issuance costs   7,640,742    7,700,988 
Receivable for investments sold   5,110,000    10,961,369 
Accrued interest income:          
Companies less than 5% owned   11,963,908    9,222,001 
Companies 5% to 25% owned   511,325    253,987 
Companies more than 25% owned   24,900    28,450 
Unrealized appreciation on swaps   3,350,776    1,717,610 
Options (cost $51,750)   71    497 
Prepaid expenses and other assets   2,960,712    2,177,217 
Total assets   1,260,472,497    1,205,866,797 
           
Liabilities          
Debt   382,798,495    328,696,830 
Incentive allocation payable   4,519,709    4,303,040 
Interest payable   3,033,149    1,510,981 
Payable to the Investment Manager   698,883    459,827 
Payable for investments purchased   -    2,049,518 
Accrued expenses and other liabilities   2,633,032    3,219,783 
Total liabilities   393,683,268    340,239,979 
           
Commitments and contingencies (Note 5)          
           
Preferred equity facility          
Series A preferred limited partner interests in Special Value Continuation Partners, LP;  $20,000/interest liquidation preference; 6,700 interests authorized, issued and outstanding   134,000,000    134,000,000 
Accumulated dividends on Series A preferred equity facility   477,056    497,790 
Total preferred limited partner interests   134,477,056    134,497,790 
           
Non-controlling interest          
General Partner interest in Special Value Continuation Partners, LP   -    - 
           
Net assets applicable to common shareholders  $732,312,173   $731,129,028 
           
Composition of net assets applicable to common shareholders          
Common stock, $0.001 par value; 200,000,000 shares authorized, 48,723,549 and          
 48,710,627 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively   48,723    48,710 
Paid-in capital in excess of par   877,308,450    877,103,880 
Accumulated net investment income   22,427,389    21,884,381 
Accumulated net realized losses   (126,494,339)   (126,408,033)
Accumulated net unrealized depreciation   (40,978,050)   (41,499,910)
Net assets applicable to common shareholders  $732,312,173   $731,129,028 
           
Net assets per share  $15.03   $15.01 

 

See accompanying notes.

 

2
 

 

TCP Capital Corp.

 

Consolidated Schedule of Investments (Unaudited)

 

March 31, 2015

 

Showing Percentage of Total Cash and Investments of the Company

 

                                    % of    
Issuer   Instrument   Ref    Floor    Spread   All-In Rate    Maturity    Principal    Cost   Value   Portfolio   Notes
                                         
Debt Investments (A)                                               
Accounting, Tax Preparation, Bookkeeping, and Payroll Services                                 
Expert Global Solutions, LLC  Second Lien Term Loan  LIBOR (Q)   1.50%    11.00%    12.50%   10/3/2018  $15,249,675   $15,012,037   $15,402,171    1.25%   
EGS Holdings, Inc.  Holdco PIK Notes  LIBOR (A)   3.00%    10.00%    13.00%   10/3/2018  $57,238    57,238    57,238    0.00%   
                                 15,069,275    15,459,409    1.25%   
Activities Related to Real Estate                                 
Daymark Financial Acceptance, LLC  Frist Lien Delayed Draw Term Loan  LIBOR (Q)   -    9.50%    9.50%   1/12/2020  $5,000,000    4,551,490    4,537,500    0.37%   
Greystone Select Holdings, LLC  First Lien Term Loan  LIBOR (Q)   1.00%    8.00%    9.00%   3/26/2021  $16,428,909    16,227,035    16,178,368    1.32%   
                                 20,778,525    20,715,868    1.69%   
                                                
Advertising, Public Relations, and Related Services                                 
Doubleplay III Limited (United Kingdom)  First Lien Facility A1 Term Loan  EURIBOR (Q)   1.25%    6.25%    7.50%   3/18/2018  13,165,705    16,866,418    14,092,798    1.15%  D/H
                                                
Artificial Synthetic Fibers and Filaments Manufacturing                                 
AGY Holding Corp.  Sr Secured Term Loan  Fixed   -    12.00%    12.00%   9/15/2016  $4,869,577    4,869,577    4,869,577    0.40%  B
AGY Holding Corp.  Second Lien Notes  Fixed   -    11.00%    11.00%   11/15/2016  $9,268,000    7,586,316    9,024,715    0.73%  B/E
                                 12,455,893    13,894,292    1.13%   
Basic Chemical Manufacturing                                 
BioAmber, Inc.  Sr Secured Term Loan  LIBOR (M)   0.23%    9.27%    9.50%   12/1/2017  $25,000,000    24,545,364    25,220,000    2.05%   
Green Biologics, Inc.  Sr Secured Term Loan  Prime Rate   3.25%    7.75%    11.00%   5/1/2018  $15,000,000    14,519,543    14,847,000    1.21%  L
PeroxyChem, LLC  First Lien Term Loan  LIBOR (Q)   1.00%    6.50%    7.50%   2/28/2020  $8,910,000    8,771,441    8,943,413    0.73%   
VitAG Holdings, LLC  Sr Secured Term Loan  LIBOR (M)   0.23%    10.27%    10.50%   2/1/2018  $7,700,000    7,564,931    7,733,600    0.63%  L
                                 55,401,279    56,744,013    4.62%   
Beverage Manufacturing                                 
Carolina Beverage Group, LLC  Secured Notes  Fixed   -    10.63%    10.63%   8/1/2018  $4,780,000    4,780,000    4,726,225    0.38%  E/G
                                                
Business Support Services                                 
Enerwise Global Technologies, Inc.  Sr Secured Revolving Loan  LIBOR (Q)   0.23%    8.52%    8.75%   11/30/2017  $    (97,413)   (112,500)   (0.01%)  K
Enerwise Global Technologies, Inc.  Sr Secured Term Loan  LIBOR (Q)   0.23%    9.27%    9.50%   11/30/2019  $17,500,000    17,175,355    17,318,875    1.41%  L
STG-Fairway Acquisitions, Inc.  Second Lien Term Loan  LIBOR (Q)   1.25%    9.25%    10.50%   8/28/2019  $36,534,491    36,280,307    37,082,508    3.02%   
                                 53,358,249    54,288,883    4.42%   
Chemical Manufacturing                                 
Archroma  Term Loan B  LIBOR (Q)   1.25%    8.25%    9.50%   9/30/2018  $19,845,876    19,559,024    19,957,509    1.62%   
                                                
Communications Equipment Manufacturing                                 
Globecomm Systems, Inc.  First Lien Term Loan  LIBOR (Q)   1.25%    7.63%    8.88%   12/11/2018  $14,812,500    14,664,375    14,739,178    1.20%  B
                                                
Computer Equipment Manufacturing                                 
ELO Touch Solutions, Inc.  Second Lien Term Loan  LIBOR (Q)   1.50%    10.50%    12.00%   12/1/2018  $12,000,000    11,651,728    11,520,000    0.94%   
Silicon Graphics International Corp.  First Lien Term Loan  LIBOR (Q)   1.00%    9.00%    10.00%   7/27/2018  $18,787,198    18,426,387    19,115,974    1.56%  J
                                 30,078,115    30,635,974    2.50%   
Computer Systems Design and Related Services                               
Autoalert, LLC  First Lien Term Loan  LIBOR (Q)   0.25%    4.75% Cash
+ 4% PIK
    9.00%   3/31/2019  $31,235,295    30,733,375    31,140,027    2.53%   
Blue Coat Systems, Inc.  First Lien Revolver  LIBOR (Q)   1.00%    3.50%    4.50%   5/31/2018  $    (674,799)   (85,860)   (0.01%)  K
Blue Coat Systems, Inc.  Second Lien Term Loan  LIBOR (Q)   1.00%    8.50%    9.50%   6/28/2020  $15,000,000    14,878,125    15,328,125    1.25%   
MSC Software Corporation  Second Lien Term Loan  LIBOR (M)   1.00%    7.50%    8.50%   5/29/2021  $11,993,035    11,883,393    11,813,140    0.96%   
OnX Enterprise Solutions, Ltd. (Canada)  First Lien Term Loan B  LIBOR (Q)   -    8.00%    8.23%   9/3/2018  $2,355,533    2,355,533    2,334,922    0.19%   
OnX Enterprise Solutions, Ltd. (Canada)  First Lien Term Loan  LIBOR (Q)   -    7.00%    7.23%   9/3/2018  $10,506,667    10,397,902    10,116,344    0.82%   
OnX USA, LLC  First Lien Term Loan B  LIBOR (Q)   -    8.00%    8.23%   9/3/2018  $4,711,067    4,711,067    4,669,845    0.38%   
OnX USA, LLC  First Lien Term Loan  LIBOR (Q)   -    7.00%    7.23%   9/3/2018  $5,253,333    5,202,657    5,058,172    0.41%   
Vistronix, LLC  First Lien Revolver  LIBOR (Q)   0.50%    8.00%    8.50%   12/4/2018  $114,199    108,810    114,199    0.01%   
Vistronix, LLC  First Lien Term Loan  LIBOR (M)   0.50%    8.00%    8.50%   12/4/2018  $6,452,895    6,388,699    6,456,122    0.53%   
                                 85,984,762    86,945,036    7.07%   
Cut and Sew Apparel Manufacturing                                 
Jones Apparel, LLC  First Lien FILO Term Loan  LIBOR (M)   1.00%    9.60%    10.60%   4/8/2019  $14,090,580    13,971,390    14,161,033    1.15%   
                                                
Data Processing, Hosting, and Related Services                                 
Asset International, Inc.  Delayed Draw Term Loan  LIBOR (M)   1.00%    7.00%    8.00%   7/31/2020  $    (42,880)   25,556    0.00%  K
Asset International, Inc.  Revolver  LIBOR (M)   1.00%    7.00%    8.00%   7/31/2020  $    (8,979)   6,019    0.00%  K
Asset International, Inc.  First Lien Term Loan  LIBOR (M)   1.00%    7.00%    8.00%   7/31/2020  $8,171,173    8,023,130    8,232,048    0.67%   
Rightside Group, Ltd.  Second Lien Term Loan  LIBOR (Q)   0.50%    8.75%    9.25%   8/6/2019  $4,937,500    4,027,945    4,809,619    0.39%   
The Telx Group, Inc.  Senior Notes  Fixed   -    13.5% PIK    13.50%   7/9/2021  $4,446,651    4,446,651    4,539,586    0.37%  E
United TLD Holdco, Ltd. (Cayman Islands)  Second Lien Term Loan  LIBOR (Q)   0.50%    8.75%    9.25%   8/6/2019  $9,875,000    8,055,890    9,619,238    0.78%  H
                                 24,501,757    27,232,066    2.21%   
Electrical Equipment and Component Manufacturing                                 
NEXTracker, Inc.  Sr Secured Revolver  LIBOR (M)   -    8.00%    8.00%   7/1/2016  $6,500,000    6,021,069    6,150,875    0.50%   
NEXTracker, Inc.  Sr Secured Term Loan  LIBOR (M)   -    9.50%    9.50%   12/16/2016  $2,500,000    2,442,705    2,450,125    0.20%  L
Palladium Energy, Inc.  First Lien Term Loan  LIBOR (Q)   1.00%    9.00%    10.00%   12/26/2017  $16,153,317    15,957,735    16,234,084    1.32%   
                                 24,421,509    24,835,084    2.02%   
Electrical Equipment Manufacturing                                 
API Technologies Corp.  First Lien Term Loan  LIBOR (Q)   1.50%    7.50%    9.00%   2/6/2018  $6,556,788    6,506,249    6,499,744    0.53%   
API Technologies Corp.  First Lien Term Loan  LIBOR (Q)   1.50%    7.50%    9.00%   2/6/2018  $4,263,206    4,162,049    4,226,116    0.34%   
                                 10,668,298    10,725,860    0.87%   

 

3
 

 

TCP Capital Corp.

 

Consolidated Schedule of Investments (Unaudited) (Continued)

 

March 31, 2015

 

Showing Percentage of Total Cash and Investments of the Company

 

                                    % of    
Issuer   Instrument   Ref    Floor    Spread   All-In Rate    Maturity    Principal    Cost   Value   Portfolio   Notes
                                         
Debt Investments (continued)                                               
Financial Investment Activities                                 
Institutional Shareholder Services, Inc.  Second Lien Term Loan  LIBOR (Q)   1.00%    7.50%    8.50%   4/30/2022  $6,471,492   $6,413,887   $6,374,420    0.52%   
Marsico Capital Management  First Lien Term Loan  LIBOR (M)   -    5.00%    5.25%   12/31/2022  $10,505,214    13,226,122    2,722,584    0.22%  I
                                 19,640,009    9,097,004    0.74%   
Full-Service Restaurants                                 
RM OpCo, LLC  Convertible Second Lien Term Loan Tranche B-1  Fixed   -    8.50%    8.50%   3/30/2018  $1,671,724    1,650,121    1,671,723    0.14%  B
RM OpCo, LLC  First Lien Term Loan Tranche A  Fixed   -    7.00%    7.00%   3/21/2016  $3,854,667    3,853,116    3,854,666    0.31%  B
RM OpCo, LLC  Second Lien
Term Loan Tranche B
  Fixed   -    8.50%    8.50%   3/30/2018  $8,329,624    8,329,624    5,465,066    0.44%  B
RM OpCo, LLC  Second Lien Term Loan Tranche B-1  Fixed   -    8.50%    8.50%   3/30/2018  $2,623,283    2,609,621    2,623,283    0.21%  B
RM OpCo, LLC  Sr Convertible Second Lien Term Loan B  Fixed   -    8.50%    8.50%   3/30/2018  $1,288,567    1,280,160    1,280,160    0.10%  B
                                 17,722,642    14,894,898    1.20%   
Gaming Industries                                 
AP Gaming I, LLC  First Lien Revolver  LIBOR (Q)   -    8.25%    8.41%   12/20/2018  $5,500,000    3,482,506    4,562,500    0.37%   
AP Gaming I, LLC  First Lien Term Loan B  LIBOR (Q)   1.00%    8.25%    9.25%   12/20/2020  $14,812,500    14,426,174    14,806,353    1.20%   
                                 17,908,680    19,368,853    1.57%   
General Medical and Surgical Hospitals                                 
RegionalCare Hospital Partners, Inc.  Second Lien Term Loan  LIBOR (M)   1.00%    9.50%    10.50%   10/23/2019  $21,017,525    20,741,125    21,306,516    1.73%   
                                                
Grocery Stores                                               
Bashas, Inc.  First Lien FILO Term Loan  LIBOR (M)   1.50%    7.00%    8.50%   10/8/2019  $10,594,733    10,554,201    10,772,194    0.88%   
The Great Atlantic & Pacific Tea Company, Inc.  Term Loan Tranche B  LIBOR (M)   1.00%    8.85%    9.85%   9/17/2019  $20,770,938    20,441,127    20,472,875    1.67%   
                                 30,995,328    31,245,069    2.55%   
Insurance Carriers                                 
Acrisure, LLC  Second Lien Additional Notes  LIBOR (Q)   1.00%    10.50%    11.50%   3/31/2020  $4,320,339    4,197,780    4,360,603    0.35%   
Acrisure, LLC  Second Lien Notes  LIBOR (Q)   1.00%    10.50%    11.50%   3/31/2020  $29,288,298    28,745,164    29,456,706    2.40%   
US Apple Holdco, LLC  First Lien Term Loan  LIBOR (Q)   0.50%    11.50%    12.00%   8/29/2019  $20,000,000    19,276,790    19,835,000    1.61%   
                                 52,219,734    53,652,309    4.36%   
Insurance Related Activities                                 
Confie Seguros Holding II Co.  Second Lien Term Loan  LIBOR (M)   1.25%    9.00%    10.25%   5/8/2019  $7,861,809    7,779,835    7,861,809    0.64%   
                                                
Lessors of Nonfinancial Intangible Assets                                 
ABG Intermediate Holdings 2, LLC  Second Lien Term Loan  LIBOR (S)   1.00%    8.00%    9.00%   5/27/2022  $15,990,714    15,841,834    16,030,691    1.30%   
                                                
Lessors of Real Estate                                 
Hunt Companies, Inc.  Senior Secured Notes  Fixed   -    9.63%    9.63%   3/1/2021  $6,584,000    6,511,469    6,781,520    0.55%  E/G
                                                
Management, Scientific, and Technical Consulting Services                                 
Dodge Data & Analytics, LLC  First Lien Term Loan  LIBOR (Q)   1.00%    8.75%    9.75%   10/31/2019  $27,853,269    27,142,536    27,686,150    2.25%   
                                                
Merchant Wholesalers                                 
Envision Acquisition Company, LLC  Second Lien Term Loan  LIBOR (Q)   1.00%    8.75%    9.75%   11/4/2021  $9,079,011    8,919,101    9,408,125    0.78%   
                                                
Motion Picture and Video Industries                                 
CORE Entertainment, Inc.  First Lien Term Loan  Fixed   -    9.00%    9.00%   6/21/2017  $9,462,231    9,405,317    7,475,163    0.61%   
CORE Entertainment, Inc.  Second Lien Term Loan  Fixed   -    13.50%    13.50%   6/21/2018  $7,569,785    7,522,497    5,038,449    0.41%   
                                 16,927,814    12,513,612    1.02%   
Newspaper, Periodical, Book, and Directory Publishers                                 
MediMedia USA, Inc.  First Lien Revolver  LIBOR (Q)   -    6.75%    6.99%   5/20/2018  $2,945,000    2,194,873    2,862,230    0.23%   
MediMedia USA, Inc.  First Lien Term Loan  LIBOR (Q)   1.25%    6.75%    8.00%   11/20/2018  $5,681,239    5,560,274    5,638,630    0.46%   
                                 7,755,147    8,500,860    0.69%   
Nondepository Credit Intermediation                                 
Caribbean Financial Group (Cayman Islands)  Sr Secured Notes  Fixed   -    11.50%    11.50%   11/15/2019  $10,000,000    9,852,200    10,125,000    0.82%  E/G/H
Trade Finance Funding I, Ltd. (Cayman Islands)  Secured Class B Notes  Fixed   -    10.75%    10.75%   11/13/2018  $15,084,000    15,084,000    15,008,580    1.22%  E/H
                                 24,936,200    25,133,580    2.04%   
Nonscheduled Air Transportation                                 
One Sky Flight, LLC  Second Lien Term Loan  Fixed   -    12% Cash
+ 3% PIK
    15.00%   6/3/2019  $32,416,040    31,599,828    33,388,521    2.72%   
                                                
Oil and Gas Extraction                                 
Jefferson Gulf Coast Energy Partners, LLC  First Lien Term Loan B  LIBOR (M)   1.00%    8.00%    9.00%   2/27/2018  $14,925,000    14,796,307    14,626,500    1.19%   
MD America Energy, LLC  Second Lien Term Loan  LIBOR (Q)   1.00%    8.50%    9.50%   8/4/2019  $10,000,000    9,553,332    9,706,250    0.79%   
                                 24,349,639    24,332,750    1.98%   
Other Information Services                                
TCH-2 Holdings, LLC  Second Lien Term Loan  LIBOR (M)   1.00%    7.75%    8.75%   11/6/2021  $19,988,392    19,712,310    19,638,596    1.60%   
                                                
Other Telecommunications                                 
Securus Technologies, Inc.  Second Lien Term Loan  LIBOR (Q)   1.25%    7.75%    9.00%   4/30/2021  $14,000,000    13,860,000    13,832,000    1.13%    

 

4
 

 

TCP Capital Corp.

 

Consolidated Schedule of Investments (Unaudited) (Continued)

 

March 31, 2015

 

Showing Percentage of Total Cash and Investments of the Company

 

                                    % of    
Issuer   Instrument   Ref    Floor    Spread   All-In Rate    Maturity    Principal    Cost   Value   Portfolio   Notes
                                         
Debt Investments (continued)                                               
Petroleum and Coal Products Manufacturing                                 
Boomerang Tube, LLC  Second Lien Term Loan  LIBOR (Q)   1.50%    9.50%    11.00%   10/11/2017  $3,825,453   $3,787,907   $2,199,636    0.18%   
                                                
Plastics Products Manufacturing                                 
Iracore International, Inc.  Sr Secured Notes  Fixed   -    9.50%    9.50%   6/1/2018  $13,600,000    13,600,000    8,092,000    0.66%  E/G
                                                
Radio and Television Broadcasting                                 
SiTV, Inc.  Sr Secured Notes  Fixed   -    10.38%    10.38%   7/1/2019  $7,312,000    7,312,000    6,617,360    0.54%  E/G
The Tennis Channel, Inc.  First Lien Term Loan  LIBOR (Q)   -    8.50%    8.75%   5/29/2017  $18,392,269    18,086,632    18,557,799    1.51%   
                                 25,398,632    25,175,159    2.05%   
Retail                                               
Kenneth Cole Productions, Inc.  First Lien FILO Term Loan  LIBOR (M)   1.00%    10.40%    11.40%   9/25/2017  $10,590,909    10,448,698    10,643,863    0.87%   
Connexity, Inc.  First Lien Term Loan  LIBOR (Q)   1.00%    10.00%    11.00%   2/13/2020  $6,630,000    6,630,000    6,631,658    0.54%   
                                 17,078,698    17,275,521    1.41%   
Satellite Telecommunications                                 
Avanti Communications Group, PLC (United Kingdom)  Sr Secured Notes  Fixed   -    10.00%    10.00%   10/1/2019  $9,914,000    9,914,000    9,616,580    0.78%  E/G/H
                                                
Scheduled Air Transportation                                 
Aircraft Leased to Delta Air Lines, Inc.                                               
N913DL  Aircraft Secured Mortgage  Fixed   -    8.00%    8.00%   3/15/2017  $183,053    183,053    186,638    0.02%  F
N918DL  Aircraft Secured Mortgage  Fixed   -    8.00%    8.00%   8/15/2018  $294,173    294,175    300,833    0.02%  F
N954DL  Aircraft Secured Mortgage  Fixed   -    8.00%    8.00%   3/20/2019  $406,580    406,580    415,567    0.03%  F
N955DL  Aircraft Secured Mortgage  Fixed   -    8.00%    8.00%   6/20/2019  $429,592    429,592    439,224    0.04%  F
N956DL  Aircraft Secured Mortgage  Fixed   -    8.00%    8.00%   5/20/2019  $426,860    426,862    436,449    0.04%  F
N957DL  Aircraft Secured Mortgage  Fixed   -    8.00%    8.00%   6/20/2019  $433,350    433,350    443,066    0.04%  F
N959DL  Aircraft Secured Mortgage  Fixed   -    8.00%    8.00%   7/20/2019  $439,784    439,784    449,619    0.04%  F
N960DL  Aircraft Secured Mortgage  Fixed   -    8.00%    8.00%   10/20/2019  $462,598    462,598    472,814    0.04%  F
N961DL  Aircraft Secured Mortgage  Fixed   -    8.00%    8.00%   8/20/2019  $453,701    453,701    463,813    0.04%  F
N976DL  Aircraft Secured Mortgage  Fixed   -    8.00%    8.00%   2/15/2018  $285,442    285,442    291,681    0.02%  F
Aircraft Leased to United Airlines, Inc.                                               
N659UA  Aircraft Secured Mortgage  Fixed   -    12.00%    12.00%   2/28/2016  $1,278,990    1,278,990    1,334,401    0.11%  F
N661UA  Aircraft Secured Mortgage  Fixed   -    12.00%    12.00%   5/4/2016  $1,494,191    1,494,191    1,573,923    0.13%  F
Mesa Air Group, Inc.  Acquisition Delayed Draw Loan  LIBOR (M)   -    7.25%    N/A   7/15/2022  $    (271,500)   46,155    0.00%  K
Mesa Air Group, Inc.  Acquisition Loan  LIBOR (M)   -    7.25%    7.44%   7/15/2022  $17,369,847    17,045,756    17,428,905    1.42%   
                                 23,362,574    24,283,088    1.99%   
Scientific Research and Development Services                                 
BPA Laboratories, Inc.  Senior Secured Notes  Fixed   -    12.25%    12.25%   4/1/2017  $38,932,000    39,001,750    41,365,250    3.37%  E/G
                                                
Semiconductor and Other Electronic Component Manufacturing                                 
Soraa, Inc.  Sr Secured Term Loan  LIBOR (M)   0.23%    10.27%    10.50%   9/1/2017  $22,500,000    21,874,907    21,573,000    1.76%  L
SunEdison, Inc.  Senior Secured Letters of Credit  Fixed   -    3.75%    N/A   2/28/2017  $    (818,823)   (750,340)   (0.06%)  J/K
                                 21,056,084    20,822,660    1.70%   
Software Publishers                                 
Acronis International GmbH (Switzerland)  First Lien Term Loan  LIBOR (Q)   1.00%    13.00%    14.00%   2/21/2017  $30,634,068    30,450,651    28,956,853    2.36%  H
ArcServe (USA), LLC  Second Lien Term Loan  LIBOR (Q)   0.50%    8.50%    9.00%   1/31/2020  $30,000,000    29,461,079    28,644,000    2.34%  H
BlackLine Systems, Inc.  First Lien Term Loan  LIBOR (Q)   1.50%    0.4% Cash
+ 7.6% PIK
    9.50%   9/25/2018  $13,835,429    13,128,091    14,250,491    1.16%   
Coreone Technologies, LLC  First Lien Term Loan  LIBOR (Q)   1.00%    3.75% Cash
+ 5% PIK
    9.75%   9/4/2018  $14,435,446    14,224,437    14,107,040    1.15%   
Deltek, Inc.  Second Lien Term Loan  LIBOR (Q)   1.25%    8.75%    10.00%   10/10/2019  $15,000,000    14,838,286    15,168,750    1.23%   
Edmentum, Inc.  Second Lien Term Loan  LIBOR (Q)   1.50%    9.75%    11.25%   5/17/2019  $21,500,000    21,370,559    11,287,500    0.92%   
                                 123,473,103    112,414,634    9.16%   
Specialty Hospitals                                 
Bioventus, LLC  Second Lien Term Loan  LIBOR (Q)   1.00%    10.00%    11.00%   4/10/2020  $11,000,000    10,786,339    11,000,000    0.90%   
UBC Healthcare Analytics, Inc.  First Lien Term Loan  LIBOR (Q)   1.00%    9.00%    10.00%   7/1/2018  $4,302,402    4,280,890    4,335,746    0.35%   
                                 15,067,229    15,335,746    1.25%   
Structured Note Funds                                 
Magnolia Finance V plc (Cayman Islands)  Asset-Backed Credit Linked Notes  Fixed   -    13.13%    13.13%   8/2/2021  $15,000,000    15,000,000    15,147,000    1.23%  E/H
                                                
Textile Furnishings Mills                                 
Lexmark Carpet Mills, Inc.  First Lien Term Loan  LIBOR (Q)   1.00%    10.00%    11.00%   12/19/2019  $25,000,000    25,000,000    25,012,500    2.04%   
                                                
Utility System Construction                                 
Kawa Solar Holdings Limited  Revolving Credit Facility  Fixed   -    8.00%    8.00%   7/2/2017  $25,000,000    25,000,000    25,000,000    2.03%   
                                                
Wired Telecommunications Carriers                                 
Alpheus Communications, LLC  Delayed Draw Term Loan  LIBOR (Q)   1.00%    6.92%    7.92%   5/31/2018  $370,273    359,137    375,314    0.03%   
Alpheus Communications, LLC  First Lien FILO Term Loan  LIBOR (Q)   1.00%    6.92%    7.92%   5/31/2018  $8,093,472    8,013,012    8,129,892    0.67%   
Integra Telecom Holdings, Inc.  Second Lien Term Loan  LIBOR (Q)   1.25%    8.50%    9.75%   2/22/2020  $15,000,000    14,747,403    14,953,200    1.23%   
                                 23,119,552    23,458,406    1.93%   
Wireless Telecommunications Carriers                                 
Gogo, LLC  First Lien Term Loan  LIBOR (Q)   1.50%    9.75%    11.25%   6/21/2017  $33,490,685    33,357,546    34,327,953    2.79%   
Gogo, LLC  First Lien Term Loan B-2  LIBOR (Q)   1.00%    6.50%    7.50%   3/21/2018  $5,481,538    5,392,523    5,317,090    0.43%   
                                 38,750,069    39,645,043    3.22%   
                                                
Total Debt Investments                                1,185,731,698    1,168,669,314    95.13%   

 

5
 

 

TCP Capital Corp.

 

Consolidated Schedule of Investments (Unaudited) (Continued)

 

March 31, 2015

 

Showing Percentage of Total Cash and Investments of the Company

 

Issuer  Instrument  Ref  Floor   Spread   All-In Rate   Maturity  Shares   Cost   Value   %
Portfolio
   Notes
                                         
Equity Securities                                        
Architectural, Engineering, and Related Services                                 
Alion Science & Technology Corporation  Warrants                    300   $-   $3    -   C
                                                
Basic Chemical Manufacturing                                 
Green Biologics, Inc.  Warrants to Purchase Stock                        376,147    272,594    255,592    0.02%  C/E
                                                
Business Support Services                                 
Findly Talent, LLC  Membership Units                        708,229    230,938    162,184    0.01%  C/E
STG-Fairway Holdings, LLC  Class A Units                        841,479    943,287    2,917,492    0.24%  C/E
                                 1,174,225    3,079,676    0.25%   
Communications Equipment Manufacturing                               
Wasserstein Cosmos Co-Invest, L.P.  Limited Partnership Units                        5,000,000    5,000,000    5,225,000    0.43%  B/C/E
                                                
Data Processing, Hosting, and Related Services                                 
Anacomp, Inc.  Class A Common Stock                        1,255,527    26,711,048    1,268,082    0.10%  C/E/F
Rightside Group, Ltd.  Warrants                        498,855    2,778,622    840,017    0.07%  C/E
                                 29,489,670    2,108,099    0.17%   
Electrical Equipment and Component Manufacturing                                 
NEXTracker, Inc.  Series B Preferred Stock                        268,817    999,999    999,999    0.08%  C/E
NEXTracker, Inc.  Warrants to Purchase Stock                        357,022    381,723    379,729    0.03%  C/E
                                 1,381,722    1,379,728    0.11%   
Financial Investment Activities                                 
Marsico Holdings, LLC  Common Interest Units                        168,698    172,694    6,748    -   C/E/I
                                                
Full-Service Restaurants                                 
RM Holdco, LLC  Equity Participation                        24    -    168    -   B/C/E
RM Holdco, LLC  Membership Units                        13,161,000    2,010,777    -    -   B/C/E
                                 2,010,777    168    -    
Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing                                 
Precision Holdings, LLC  Class C Membership Interest                        33    -    728    -   C/E
                                                
Nonmetallic Mineral Mining and Quarrying                                 
EPMC HoldCo, LLC  Membership Units                        1,312,720    -    682,614    0.05%  B/E
                                                
Nonscheduled Air Transportation                                 
Flight Options Holdings I, Inc.  Warrants to Purchase Common Stock                        1,843    1,274,000    4,026,996    0.33%  C/E
                                                
Radio and Television Broadcasting                                 
SiTV, Inc.  Warrants to Purchase Common Stock                        233,470    300,322    331,527    0.03%  C/E
                                                
Retail                                               
Shop Holding, LLC  Class A Units                        507,167    480,049    316,422    0.03%  C/E
Shop Holding, LLC  Warrants to Purchase Class A Units                        326,691    -    18,389    -   C/E
                                 480,049    334,811    0.03%   
Scheduled Air Transportation                                 
Aircraft Leased to Delta Air Lines, Inc.                                               
N913DL  Trust Beneficial Interests                        1,084    85,831    115,087    0.01%  E/F
N918DL  Trust Beneficial Interests                        884    92,094    133,883    0.01%  E/F
N954DL  Trust Beneficial Interests                        824    106,132    73,794    0.01%  E/F
N955DL  Trust Beneficial Interests                        795    104,512    110,264    0.01%  E/F
N956DL  Trust Beneficial Interests                        802    104,442    106,196    0.01%  E/F
N957DL  Trust Beneficial Interests                        795    105,060    107,068    0.01%  E/F
N959DL  Trust Beneficial Interests                        788    105,677    107,959    0.01%  E/F
N960DL  Trust Beneficial Interests                        769    108,083    107,352    0.01%  E/F
N961DL  Trust Beneficial Interests                        782    107,394    102,452    0.01%  E/F
N976DL  Trust Beneficial Interests                        943    94,132    101,662    0.01%  E/F
Aircraft Leased to United Airlines, Inc.                                               
United N659UA-767, LLC (N659UA)  Trust Beneficial Interests                        555    2,683,406    3,242,365    0.26%  E/F
United N661UA-767, LLC (N661UA)  Trust Beneficial Interests                        539    2,623,263    3,146,164    0.26%  E/F
                                 6,320,026    7,454,246    0.62%   
Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing                                 
KAGY Holding Company, Inc.  Series A Preferred Stock                        9,778    1,091,200    138,876    0.01%  B/C/E
                                                
Semiconductor and Other Electronic Component Manufacturing                                 
Ichor Systems Holdings, LLC  Membership Units                        352    -    229,504    0.02%  C/E
Soraa, Inc.  Warrants to Purchase Common Stock                        315,000    408,987    134,127    0.01%  C/E
                                 408,987    363,631    0.03%   

  

6
 

 

TCP Capital Corp.

 

Consolidated Schedule of Investments (Unaudited) (Continued)

 

March 31, 2015

 

Showing Percentage of Total Cash and Investments of the Company

 

                                    % of    
Issuer  Instrument  Ref  Floor   Spread   All-In Rate   Maturity  Shares   Cost   Value   Portfolio   Notes
                                         
Equity Securities (continued)                                               
Software Publishers                                               
Blackline Intermediate, Inc.  Warrants to Purchase Common Stock                        1,232,731   $522,678   $954,873    0.08%  C/E
                                                
Wired Telecommunications Carriers                                               
Integra Telecom, Inc.  Common Stock                        1,274,522    8,433,883    5,249,884    0.42%  C/E
Integra Telecom, Inc.  Warrants                        346,939    19,920    221,174    0.02%  C/E
V Telecom Investment S.C.A.(Luxembourg)  Common Shares                        1,393    3,236,256    2,860,828    0.23%  C/D/E/H
                                 11,690,059    8,331,886    0.67%   
                                                
Total Equity Securities                                61,589,003    34,675,202    2.83%   
                                                
Total Investments                                1,247,320,701    1,203,344,516         
                                                
Cash and Cash Equivalents                                               
Cash Denominated in Foreign Currencies                                     348,752    0.03%   
Cash Held on Account at Various Institutions                                     25,216,795    2.05%   
Cash and Cash Equivalents                                     25,565,547    2.08%   
                                                
Total Cash and Investments                                    $1,228,910,063    100.00%  M

 

Notes to Consolidated Schedule of Investments:

 

(A)Investments in bank debt generally are bought and sold among institutional investors in transactions not subject to registration under the Securities Act of 1933. Such transactions are generally subject to contractual restrictions, such as approval of the agent or borrower.

 

(B)Non-controlled affiliate – as defined under the Investment Company Act of 1940 (ownership of between 5% and 25% of the outstanding voting securities of this issuer). See Consolidated Schedule of Changes in Investments in Affiliates.

 

(C)Non-income producing security.

 

(D)Principal amount denominated in foreign currency. Amortized cost and fair value converted from foreign currency to US dollars. Foreign currency denominated investments are generally hedged for currency exposure.
At March 31, 2015, such hedging activities included the derivatives listed at the end of the Consolidated Schedule of Investments. (See Note 2)

 

(E)Restricted security. (See Note 2)

 

(F)Controlled issuer – as defined under the Investment Company Act of 1940 (ownership of 25% or more of the outstanding voting securities of this issuer). Investment is not more than 50% owned nor deemed to be a significant subsidiary. See Consolidated Schedule of Changes in Investments in Affiliates.

  

(G)Investment has been segregated to collateralize certain unfunded commitments.

 

(H)Non-U.S. company or principal place of business outside the U.S. and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

 

(I)Deemed an investment company under Section 3(c) of the Investment Company Act and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

 

(J)Publicly traded company with a market capitalization greater than $250 million and as a result the investment is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

 

(K)Negative balances relate to an unfunded commitment that was acquired and valued at a discount.

 

(L)In addition to the stated coupon, investment has a back-end fee payable on the original principal amount upon repayment of the loan at a rate of 4.0% for Soraa, 8.0% for VitAg, 1.5% for Enerwise, 2.5% for NEXTracker, and 7.0% for Green Biologics.

 

(M)All cash and investments, except those referenced in Notes G above, are pledged as collateral under certain debt as described in Note 4 to the Consolidated Financial Statements.

 

LIBOR or EURIBOR resets monthly (M), quarterly (Q), semiannually (S), or annually (A).

 

Aggregate acquisitions and aggregate dispositions of investments, other than government securities, totaled $106,821,856, and $50,432,745 respectively, for the three months ended March 31, 2015. Aggregate acquisitions includes investment assets received as payment in kind. Aggregate dispositions includes principal paydowns on and maturities of debt investments. The total value of restricted securities and bank debt as of March 31, 2015 was $1,203,344,513, or 97.9% of total cash and investments of the Company.

 

Options and swaps at March 31, 2015 were as follows:

 

Investment  Notional Amount   Fair Value 
         
Interest Rate Cap, 4%, expires 5/15/2016  $25,000,000   $71 
Euro/US Dollar Cross-Currency Basis Swap, Pay Euros/Receive USD, Expires 3/31/2017  $4,289,018   $3,350,776 

 

See accompanying notes.

 

7
 

TCP Capital Corp.

 

Consolidated Schedule of Investments

 

December 31, 2014

 

Showing Percentage of Total Cash and Investments of the Company

 

                                    % of    
Issuer  Instrument  Ref  Floor   Spread   All-In Rate   Maturity    Principal     Cost   Value   Portfolio   Notes
                                         
Debt Investments (A)                &n