Edgar Filing: TCP Capital Corp.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

Quarterly 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

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.

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	%

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	%

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	%

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	%

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.

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)