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 June 30, 2016
 
☐ 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 ☒ 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     ☐
 
 
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 ☒

The number of shares of the Registrant’s common stock, $0.001 par value, outstanding as of August 9, 2016 was 50,705,049.
 
TCP CAPITAL CORP.
 
FORM 10-Q FOR THE SIX MONTHS ENDED JUNE 30, 2016
 

  TABLE OF CONTENTS  
     
Part I.
Financial Information
 
 
 
 
Item 1.
Financial Statements
  
 
2
 
3
 
13
 
14
 
15
 
16
 
44
 
45
 
47
 
49
 
 
 
51
 
 
 
66
 
 
 
66
 
 
 
Part II.
Other Information
 
 
 
 
67
 
 
  
67
 
 
  
67
 
 
  
67
 
 
  
67
 
 
  
67
 
 
  
67
 

TCP Capital Corp.
 
Consolidated Statements of Assets and Liabilities
 
   
June 30, 2016
    
December 31, 2015
  
   
(unaudited)
        
Assets
            
Investments, at fair value:
            
Companies less than 5% owned (cost of $1,151,564,537 and $1,123,682,687, respectively)
  
$
1,129,946,177
    
$
1,099,208,475
  
Companies 5% to 25% owned (cost of $74,317,200 and $68,862,518, respectively)
    
72,159,305
      
69,008,931
  
Companies more than 25% owned (cost of $54,938,136 and $39,162,221 respectively)
    
29,395,925
      
14,702,319
  
Total investments (cost of $1,280,819,873 and $1,231,707,426, respectively)
    
1,231,501,407
      
1,182,919,725
  
                 
Cash and cash equivalents
    
38,313,586
      
35,629,435
  
Receivable for investments sold
    
27,666,936
      
-
  
Accrued interest income:
                
Companies less than 5% owned
    
7,992,011
      
8,842,528
  
Companies 5% to 25% owned
    
784,121
      
741,306
  
Companies more than 25% owned
    
529,885
      
29,230
  
Deferred debt issuance costs
    
4,603,529
      
5,390,241
  
Unrealized appreciation on swaps
    
2,981,525
      
3,229,442
  
Options (cost of $279,327 and $51,750, respectively)
    
417,504
      
-
  
Prepaid expenses and other assets
    
821,524
      
2,331,044
  
Total assets
    
1,315,612,028
      
1,239,112,951
  
                 
Liabilities
                
Debt, net of unamortized issuance costs
    
516,661,216
      
498,205,471
  
Payable for investments purchased
    
40,952,073
      
6,425,414
  
Incentive allocation payable
    
4,626,745
      
5,207,606
  
Interest payable
    
2,996,217
      
2,911,257
  
Payable to the Advisor
    
749,945
      
508,334
  
Accrued expenses and other liabilities
    
2,434,735
      
3,877,852
  
Total liabilities
    
568,420,931
      
517,135,934
  
                 
Commitments and contingencies (Note 5)
                
                 
Net assets applicable to common shareholders
  
$
747,191,097
    
$
721,977,017
  
                 
Composition of net assets applicable to common shareholders
                
Common stock, $0.001 par value; 200,000,000 shares authorized, 50,705,049 and 48,834,734 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively
  
$
50,705
    
$
48,834
  
Paid-in capital in excess of par
    
906,725,366
      
878,383,356
  
Accumulated net investment income
    
23,279,884
      
22,261,793
  
Accumulated net realized losses
    
(135,815,320
)
    
(132,483,593
)
Accumulated net unrealized depreciation
    
(47,049,538
)
    
(46,233,373
)
Net assets applicable to common shareholders
  
$
747,191,097
    
$
721,977,017
  
                 
Net assets per share
  
$
14.74
    
$
14.78
  
 
See accompanying notes to the consolidated financial statements.
      

TCP Capital Corp.
 
Consolidated Schedule of Investments (Unaudited)
 
June 30, 2016
 
                                                 
% of Total
      
                        Total                  
Fair
    
Cash and
      
Issuer
  
Instrument
  
Ref
  
Floor
    
Spread
    
Coupon
  
Maturity
  
Principal
    
Cost
    
Value
    
Investments
    
Notes
                                                                    
Debt Investments (A)   
                                                        
                                                                    
Advertising, Public Relations Services
                                                              
Doubleplay III Limited
(Exterion Media) (United Kingdom)
  
First Lien Facility A1 Term Loan
  
EURIBOR (Q)
    
1.25
%
    
5.75
%
    
7.00
%
3/18/2018
  
€
12,249,157
    
$
16,157,454
    
$
13,603,914
      
1.07
%
  
D/H
InMobi, Inc. (Singapore)
  
First Lien Delayed Draw Tranche 1 Term Loan (1.25% Exit Fee)
  
LIBOR (M)
    
0.33
%
    
10.17
%
    
10.86
%
9/1/2018
  
$
15,000,000
      
14,663,929
      
14,727,750
      
1.16
%
  
H/L
InMobi, Inc. (Singapore)
  
First Lien Delayed Draw Tranche 1 Term Loan
  
LIBOR (M)
    
0.33
%
    
10.17
%
    
N/A
  
9/1/2018
  
$
–
      
-
      
-
      
-
    
H
InMobi, Inc. (Singapore)
  
First Lien Delayed Draw Tranche 1 Term Loan
  
LIBOR (M)
    
0.33
%
    
10.17
%
    
N/A
  
9/1/2018
  
$
–
      
-
      
-
      
-
    
H
                                               
30,821,383
      
28,331,664
      
2.23
%
    
Air Transportation
                                                                            
Cargojet Airways LTD. (Canada)
  
Aircraft Acquisition Loan A
  
LIBOR (M)
    
-
      
8.50
%
    
9.00
%
1/31/2023
  
$
13,738,102
      
13,496,379
      
13,984,014
      
1.10
%
  
H
Cargojet Airways LTD. (Canada)
  
Aircraft Acquisition Loan A1
  
LIBOR (M)
    
-
      
8.50
%
    
9.00
%
1/31/2023
  
$
14,058,316
      
13,794,314
      
14,300,119
      
1.13
%
  
H
Mesa Air Group, Inc.
  
Acquisition Delayed Draw Loan
  
LIBOR (M)
    
-
      
7.25
%
    
N/A
  
6/17/2019
  
$
-
      
-
      
271,500
      
0.02
%
    
Mesa Air Group, Inc.
  
Acquisition Loan
  
LIBOR (M)
    
-
      
7.25
%
    
7.75
%
7/15/2022
  
$
15,038,207
      
14,799,825
      
15,338,971
      
1.21
%
    
                                               
42,090,518
      
43,894,604
      
3.46
%
    
Apparel Manufacturing
                                                                            
Broder Bros., Co.
  
First Lien Term Loan (First Out)
  
LIBOR (Q)
    
1.25
%
    
5.75
%
    
7.00
%
6/3/2021
  
$
9,840,000
      
9,663,099
      
9,692,400
      
0.76
%
    
Broder Bros., Co.
  
First Lien Term Loan B (Last Out)
  
LIBOR (Q)
    
1.25
%
    
12.25
%
    
13.50
%
6/3/2021
  
$
9,860,000
      
9,687,471
      
9,712,100
      
0.76
%
    
JH Apparel Holdings, LLC
  
First Lien FILO Term Loan
  
LIBOR (M)
    
1.00
%
    
9.60
%
    
10.60
%
4/8/2019
  
$
3,192,279
      
3,175,386
      
3,224,202
      
0.25
%
    
                                               
22,525,956
      
22,628,702
      
1.77
%
    
Business Support Services
                                                                            
Enerwise Global Technologies, Inc.
  
Sr Secured Revolving Loan
  
LIBOR (Q)
    
0.23
%
    
8.52
%
    
8.75
%
11/30/2018
  
$
–
      
(27,602
)
    
11,600
      
-
    
K
Enerwise Global Technologies, Inc.
  
Sr Secured Term Loan (1.0% Exit Fee)
  
LIBOR (Q)
    
0.23
%
    
9.27
%
    
9.92
%
11/30/2019
  
$
24,250,000
      
24,018,703
      
24,320,325
      
1.92
%
  
L
STG-Fairway Acquisitions, Inc.
(First Advantage)
  
Second Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
9.25
%
    
10.25
%
6/30/2023
  
$
31,000,000
      
30,566,061
      
31,864,900
      
2.51
%
    
                                               
54,557,162
      
56,196,825
      
4.43
%
    
Chemicals
                                                                            
Anuvia Plant Nutrients Holdings, LLC
  
Sr Secured Term Loan (8.0% Exit Fee)
  
LIBOR (Q)
    
-
      
10.63
%
    
11.96
%
2/1/2018
  
$
10,254,168
      
10,651,471
      
10,748,931
      
0.85
%
  
L
BioAmber, Inc.
  
Sr Secured Term Loan (8.0% Exit Fee)
  
LIBOR (M)
    
0.23
%
    
9.27
%
    
9.96
%
12/1/2017
  
$
7,982,168
      
8,346,945
      
8,675,020
      
0.68
%
  
L
Green Biologics, Inc.
  
Sr Secured Delayed Draw Term Loan (10.0% Exit Fee)
  
Prime Rate
    
-
      
7.75
%
    
11.25
%
5/1/2018
  
$
15,000,000
      
15,202,033
      
15,553,500
      
1.22
%
  
L
                                               
34,200,449
      
34,977,451
      
2.75
%
    
Communications Equipment Manufacturing   
                                                                      
Globecomm Systems, Inc.
  
First Lien Term Loan
  
LIBOR (Q)
    
1.25
%
    
7.63
%
    
10.13
%
12/11/2018
  
$
14,554,640
      
14,409,094
      
14,554,640
      
1.15
%
  
B
Globecomm Systems, Inc.
  
First Lien Series A Term Loan
  
LIBOR (Q)
    
1.25
%
    
7.63
%
    
8.88
%
12/11/2018
  
$
–
      
-
      
-
      
-
      
                                               
14,409,094
      
14,554,640
      
1.15
%
    
                                                                                  
Computer Equipment Manufacturing
                                                                            
Silicon Graphics International Corp.
  
First Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
9.00
%
    
10.00
%
7/27/2018
  
$
15,949,968
      
15,757,759
      
16,069,593
      
1.27
%
  
J
                                                                                  
Computer Systems Design and Related Services
                                                                       
Dealersocket, Inc.
  
Senior Secured 1st Lien Term Loan
  
LIBOR (M)
    
1.00
%
    
10.00
%
    
11.00
%
2/10/2021
  
$
17,500,000
      
16,883,291
      
17,272,500
      
1.36
%
    
MSC Software Corporation
  
Second Lien Term Loan
  
LIBOR (M)
    
1.00
%
    
7.50
%
    
8.50
%
5/29/2021
  
$
6,993,035
      
6,945,905
      
5,944,080
      
0.47
%
    
OnX Enterprise Solutions, Ltd. (Canada)
  
First Lien Term Loan B
  
LIBOR (Q)
    
-
      
8.00
%
    
8.64
%
9/3/2018
  
$
2,325,867
      
2,325,867
      
2,325,867
      
0.18
%
  
H
OnX Enterprise Solutions, Ltd. (Canada)
  
First Lien Term Loan
  
LIBOR (Q)
    
-
      
8.00
%
    
8.64
%
9/3/2018
  
$
10,373,333
      
10,306,412
      
10,373,333
      
0.82
%
  
H
OnX USA, LLC
  
First Lien Term Loan B
  
LIBOR (Q)
    
-
      
8.00
%
    
8.64
%
9/3/2018
  
$
3,761,733
      
3,761,733
      
3,761,733
      
0.30
%
    
OnX USA, LLC
  
First Lien Term Loan
  
LIBOR (Q)
    
-
      
8.00
%
    
8.64
%
9/3/2018
  
$
3,186,667
      
3,169,864
      
3,186,667
      
0.25
%
    
Vistronix, LLC
  
First Lien Revolver
  
LIBOR (Q)
    
0.50
%
    
8.50
%
    
9.00
%
12/4/2018
  
$
570,996
      
567,735
      
570,996
      
0.04
%
    
Vistronix, LLC
  
First Lien Term Loan
  
LIBOR (M)
    
0.50
%
    
8.50
%
    
9.00
%
12/4/2018
  
$
6,123,145
      
6,082,365
      
6,061,914
      
0.48
%
    
Waterfall International, Inc.
  
First Lien Delayed Draw Term Loan
  
LIBOR (Q)
    
-
      
11.67
%
    
12.36
%
9/1/2018
  
$
4,800,000
      
4,772,537
      
4,818,960
      
0.38
%
    
                                               
54,815,709
      
54,316,050
      
4.28
%
    
Data Processing and Hosting Services
                                                                            
Asset International, Inc.
  
Delayed Draw Term Loan
  
LIBOR (M)
    
1.00
%
    
7.00
%
    
8.00
%
7/31/2020
  
$
3,430,383
      
3,399,154
      
3,383,558
      
0.27
%
    
Asset International, Inc.
  
Revolver Loan
  
LIBOR (M)
    
1.00
%
    
7.00
%
    
8.00
%
7/31/2020
  
$
807,920
      
801,046
      
796,892
      
0.06
%
    
Asset International, Inc.
  
First Lien Term Loan
  
LIBOR (M)
    
1.00
%
    
7.00
%
    
8.00
%
7/31/2020
  
$
8,088,844
      
7,971,339
      
7,978,431
      
0.63
%
    
Rightside Group, Ltd.
  
Second Lien Term Loan
  
LIBOR (Q)
    
0.50
%
    
8.75
%
    
9.44
%
8/6/2019
  
$
4,625,000
      
3,972,348
      
4,643,500
      
0.37
%
    
United TLD Holdco, Ltd. (Rightside) (Cayman Islands)
  
Second Lien Term Loan
  
LIBOR (Q)
    
0.50
%
    
8.75
%
    
9.44
%
8/6/2019
  
$
9,250,000
      
7,944,697
      
9,287,000
      
0.73
%
  
H
                                               
24,088,584
      
26,089,381
      
2.06
%
    

TCP Capital Corp.
 
Consolidated Schedule of Investments (Unaudited) (Continued)
 
June 30, 2016
 
                                                 
% of Total
      
                                           
Fair
    
Cash and
      
Issuer
  
Instrument
  
Ref
  
Floor
    
Spread
    
Total Coupon
  
Maturity
  
Principal
    
Cost
    
Value
    
Investments
    
Notes
                                                                    
Debt Investments (continued)       
                                                    
Electric Power Generation, Transmission and Distribution 
                                                         
Holocene Renewable Energy Fund 3, LLC (Conergy)
  
First Lien Term Loan
  
Fixed
    
-
    
9% Cash
 + 1% PIK
      
10.00
%
9/10/2017
  
$
7,499,009
    
$
7,452,179
    
$
7,424,019
      
0.58
%
    
CGY UK Portfolio I Borrower LLC, (Conergy)
  
Senior Secured 1st Lien Term Loan
  
LIBOR (Q)
    
-
      
9.00
%
    
9.65
%
3/3/2018
  
$
3,951,020
      
3,849,232
      
3,911,510
      
0.31
%
    
                                               
11,301,411
      
11,335,529
      
0.89
%
    
Electronic Component Manufacturing
                                                                            
Redaptive, Inc.
  
First Lien Delayed Draw Term Loan
  
LIBOR (Q)
    
-
      
10.72
%
    
N/A
  
7/1/2018
  
$
–
      
(96,963
)
    
-
      
-
    
K
Soraa, Inc.
  
Tranche A Term Loan (3.0% Exit Fee)
  
LIBOR (Q)
    
0.44
%
    
9.33
%
    
9.96
%
3/1/2018
  
$
21,383,721
      
20,745,834
      
20,858,751
      
1.64
%
  
L
Soraa, Inc.
  
Tranche B Term Loan
  
LIBOR (Q)
    
0.44
%
    
9.33
%
    
9.96
%
9/1/2017
  
$
1,603,779
      
1,523,920
      
1,580,043
      
0.12
%
    
                                               
22,172,791
      
22,438,794
      
1.76
%
    
Equipment Leasing 
                                                                            
36th Street Capital Partners Holdings, LLC
  
Senior Note
  
Fixed
    
-
      
12.00
%
    
12.00
%
11/1/2020
  
$
16,870,302
      
16,870,302
      
16,870,302
      
1.33
%
  
E/F
Essex Ocean, LLC (Solexel)
  
Sr Secured Term Loan
  
Fixed
    
-
      
8.00
%
    
8.00
%
8/15/2018
  
$
2,167,243
      
2,167,243
      
2,206,254
      
0.17
%
    
                                               
19,037,545
      
19,076,556
      
1.50
%
    
Facilities Support Services 
                                                                            
NANA Development Corp.
  
First Lien Term Loan B
  
LIBOR (M)
    
1.25
%
    
6.75
%
    
8.00
%
3/15/2018
  
$
1,407,222
      
1,312,234
      
1,315,752
      
0.10
%
    
                                                                                  
Financial Investment Activities
                                                                            
iPayment, Inc.
  
First Lien Term Loan B2
  
LIBOR (Q)
    
1.50
%
    
5.25
%
    
6.75
%
5/8/2017
  
$
12,304,553
      
11,922,380
      
11,781,610
      
0.93
%
    
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
      
14,812,500
      
1.17
%
  
E/H
                                               
26,922,380
      
26,594,110
      
2.10
%
    
Gaming
                                                                            
AP Gaming I, LLC
  
First Lien Revolver
  
LIBOR (M)
    
-
      
8.25
%
    
N/A
  
12/20/2018
  
$
–
      
(1,759,594
)
    
(1,562,500
)
    
(0.12
%)
  
K
                                                                                  
Grocery Stores
                                                                            
Bashas, Inc.
  
First Lien FILO Term Loan
  
LIBOR (M)
    
1.50
%
    
8.80
%
    
10.30
%
10/8/2019
  
$
9,455,037
      
9,418,865
      
9,549,587
      
0.75
%
    
                                                                                  
Hospitals
                                                                            
Evidera, Inc.
  
First Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
9.00
%
    
10.00
%
7/1/2018
  
$
3,611,649
      
3,593,591
      
3,665,824
      
0.29
%
    
KPC Healthcare, Inc.
  
First Lien Term Loan
  
Prime Rate
    
-
      
8.25
%
    
11.75
%
8/28/2020
  
$
15,866,144
      
15,557,477
      
15,960,547
      
1.26
%
    
                                               
19,151,068
      
19,626,371
      
1.55
%
    
Insurance Carriers
                                                                            
JSS Holdings, Inc.
  
First Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
6.50
%
    
7.50
%
8/31/2021
  
$
3,850,000
      
3,781,810
      
3,657,500
      
0.29
%
    
US Apple Holdco, LLC (Ventiv Technology)
  
First Lien Term Loan
  
LIBOR (Q)
    
0.50
%
    
11.50
%
    
12.19
%
8/29/2019
  
$
20,000,000
      
19,444,049
      
20,000,000
      
1.58
%
    
                                               
23,225,859
      
23,657,500
      
1.87
%
    
Insurance Related Activities
                                                                            
Acrisure, LLC
  
Second Lien Notes
  
LIBOR (Q)
    
1.00
%
    
9.00
%
    
10.00
%
11/19/2022
  
$
28,999,999
      
28,612,141
      
28,999,999
      
2.28
%
    
Acrisure, LLC
  
Second Lien Incremental Notes
  
LIBOR (Q)
    
1.00
%
    
9.00
%
    
10.00
%
11/19/2022
  
$
6,000,000
      
5,942,305
      
6,000,000
      
0.47
%
    
                                               
34,554,446
      
34,999,999
      
2.75
%
    
Lessors of Nonfinancial Licenses
                                                                            
ABG Intermediate Holdings 2, LLC
  
Second Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
8.50
%
    
9.50
%
5/27/2022
  
$
15,768,424
      
15,640,895
      
15,255,950
      
1.20
%
    
ABG Intermediate Holdings 2, LLC
  
Second Lien Incremental Term Loan
  
LIBOR (Q)
    
1.00
%
    
8.50
%
    
9.50
%
5/27/2022
  
$
3,426,412
      
3,395,672
      
3,315,054
      
0.26
%
    
                                               
19,036,567
      
18,571,004
      
1.46
%
    
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
  
$
24,344,549
      
23,884,767
      
23,735,935
      
1.87
%
    
                                                                                  
Medical Equipment and Supplies Manufacturing  
                                                                   
Bioventus, LLC
  
Second Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
10.00
%
    
11.00
%
4/10/2020
  
$
11,000,000
      
10,835,990
      
10,917,500
      
0.86
%
    
                                                                                  
Motion Picture and Video Industries
                                                                            
CORE Entertainment, Inc.
  
First Lien Term Loan
  
Fixed
    
-
      
11.00
%
    
11.00
%
6/21/2017
  
$
9,462,231
      
9,497,311
      
4,314,304
      
0.34
%
  
C
CORE Entertainment, Inc.
  
Second Lien Term Loan
  
Fixed
    
-
      
15.50
%
    
15.50
%
6/21/2018
  
$
7,569,785
      
7,700,187
      
298,250
      
0.02
%
  
C
                                               
17,197,498
      
4,612,554
      
0.36
%
    
Nondepository Credit Intermediation
                                                                            
Caribbean Financial Group (Cayman Islands)
  
Sr Secured Notes
  
Fixed
    
-
      
11.50
%
    
11.50
%
11/15/2019
  
$
28,678,000
      
28,552,175
      
28,911,009
      
2.28
%
  
E/G/H
Daymark Financial Acceptance, LLC
  
First Lien Delayed
 Draw Term Loan
  
LIBOR (M)
    
-
      
9.50
%
    
9.96
%
1/12/2020
  
$
17,500,000
      
17,267,540
      
17,017,000
      
1.34
%
    
Greystone Select Holdings, LLC
  
First Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
8.00
%
    
9.00
%
3/26/2021
  
$
16,183,908
      
16,018,277
      
15,913,637
      
1.25
%
    
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
      
14,857,740
      
1.17
%
  
E/H
                                               
76,921,992
      
76,699,386
      
6.04
%
    
Oil and Gas Extraction
                                                                            
MD America Energy, LLC
  
Second Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
8.50
%
    
9.50
%
8/4/2019
  
$
242,857
      
240,296
      
228,286
      
0.02
%
    
                                                                                  
Other Chemical Products and Mineral Manufacturing    
                                                               
Nanosys, Inc.
  
Senior Secured 1st Lien Delayed Draw Term Loan (3.0% Exit Fee)
  
LIBOR (Q)
    
-
      
9.81
%
    
10.50
%
4/1/2019
  
$
7,000,000
      
6,371,874
      
6,654,050
      
0.52
%
  
L
                                                                                  
Other Information Services
                                                                            
Simmons Research, LLC
  
First Lien Term Loan
  
LIBOR (Q)
    
0.50
%
    
10.50
%
    
11.19
%
12/11/2020
  
$
5,000,712
      
4,908,856
      
4,938,203
      
0.39
%
    
SoundCloud Ltd. (United Kingdom)
  
Sr Secured Term Loan (2.0% Exit Fees)
  
LIBOR (M)
    
0.28
%
    
10.72
%
    
11.00
%
10/1/2018
  
$
31,550,000
      
31,494,139
      
31,944,398
      
2.52
%
  
H/L
TCH-2 Holdings, LLC (TravelClick)
  
Second Lien Term Loan
  
LIBOR (M)
    
1.00
%
    
7.75
%
    
8.75
%
11/6/2021
  
$
19,988,392
      
19,752,366
      
18,789,089
      
1.48
%
  
G
                                               
56,155,361
      
55,671,690
      
4.39
%
    
Other 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
      
0.38
%
  
B
AGY Holding Corp.
  
Second Lien Notes
  
Fixed
    
-
      
11.00
%
    
11.00
%
11/15/2016
  
$
9,268,000
      
7,586,317
      
9,268,000
      
0.73
%
  
B/E
Boomerang Tube, LLC
  
Subordinated Notes
  
LIBOR (M)
    
-
      
17.50
%
    
17.50
%
2/1/2021
  
$
1,030,741
      
1,030,741
      
146,365
      
0.01
%
  
C
                                               
13,486,635
      
14,283,942
      
1.12
%
    
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
      
12,623,310
      
0.99
%
    
                                                                                  

 
TCP Capital Corp.
 
Consolidated Schedule of Investments (Unaudited) (Continued)
 
June 30, 2016
 
                                                 
% of Total
      
                                           
Fair
    
Cash and
      
Issuer
  
Instrument
  
Ref
  
Floor
    
Spread
    
Total Coupon
  
Maturity
  
Principal
    
Cost
    
Value
    
Investments
    
Notes
                                                                    
Debt Investments (continued)     
                                                    
Other Publishing 
                                                              
Bisnow, LLC
  
First Lien Revolver
  
LIBOR (Q)
    
-
      
9.00
%
    
N/A
  
4/29/2021
  
$
–
    
$
(24,000
)
  
$
(24,000
)
    
-
    
K
Bisnow, LLC
  
First Lien Term Loan
  
LIBOR (Q)
    
-
      
9.00
%
    
9.69
%
4/29/2021
  
$
8,800,000
      
8,629,495
      
8,624,000
      
0.68
%
    
MediMedia USA, Inc.
  
First Lien Revolver
  
Prime Rate
    
-
      
5.75
%
    
9.25
%
5/20/2018
  
$
3,952,500
      
3,501,508
      
3,952,500
      
0.31
%
    
MediMedia USA, Inc.
  
First Lien Term Loan
  
LIBOR (Q)
    
1.25
%
    
6.75
%
    
8.00
%
11/20/2018
  
$
5,681,239
      
5,598,879
      
5,681,239
      
0.45
%
  
G
                                               
17,705,882
      
18,233,739
      
1.44
%
    
Pharmaceuticals
                                                                            
Lantheus Medical Imaging, Inc.
  
First Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
6.00
%
    
7.00
%
6/30/2022
  
$
10,976,206
      
10,380,535
      
9,823,704
      
0.77
%
    
                                                                                  
Plastics Manufacturing 
                                                                            
Iracore International, Inc.
  
Sr Secured Notes
  
Fixed
    
-
      
9.50
%
    
9.50
%
6/1/2018
  
$
13,600,000
      
13,600,000
      
7,378,000
      
0.58
%
  
E/G
                                                                                  
Radio and Television Broadcasting 
                                                                            
Fuse, LLC
  
Sr Secured Notes
  
Fixed
    
-
      
10.38
%
    
10.38
%
7/1/2019
  
$
7,312,000
      
7,312,000
      
5,739,920
      
0.45
%
  
E/G
NEP/NCP Holdco, Inc.
  
Second Lien Term Loan
  
LIBOR (M)
    
1.25
%
    
8.75
%
    
10.00
%
7/22/2020
  
$
15,000,000
      
14,735,376
      
14,325,000
      
1.13
%
    
                                               
22,047,376
      
20,064,920
      
1.58
%
    
                                                                                  
Restaurants 
                                                                            
RM OpCo, LLC (Real Mex)
  
Convertible Second Lien Term Loan Tranche B-1
  
Fixed
    
-
      
8.50
%
    
8.50
%
3/30/2018
  
$
1,861,478
      
1,861,478
      
1,861,478
      
0.15
%
  
B
RM OpCo, LLC (Real Mex)
  
First Lien Term Loan Tranche A
  
Fixed
    
-
      
7.00
%
    
7.00
%
3/30/2018
  
$
4,857,987
      
4,574,601
      
4,857,987
      
0.38
%
  
B
RM OpCo, LLC (Real Mex)
  
Second Lien Term Loan Tranche B
  
Fixed
    
-
      
8.50
%
    
8.50
%
3/30/2018
  
$
9,275,105
      
9,275,105
      
3,446,629
      
0.27
%
  
B
RM OpCo, LLC (Real Mex)
  
Second Lien Term Loan Tranche B-1
  
Fixed
    
-
      
8.50
%
    
8.50
%
3/30/2018
  
$
2,921,047
      
2,905,624
      
2,921,047
      
0.23
%
  
B
RM OpCo, LLC (Real Mex)
  
Sr Convertible Second Lien Term Loan B
  
Fixed
    
-
      
8.50
%
    
8.50
%
3/30/2018
  
$
2,729,864
      
2,729,864
      
2,729,864
      
0.21
%
  
B
                                               
21,346,672
      
15,817,005
      
1.24
%
    
Retail 
                                                                            
Connexity, Inc.
  
First Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
10.00
%
    
11.00
%
2/13/2020
  
$
6,193,688
      
6,193,688
      
6,076,317
      
0.48
%
    
The Gymboree Corporation
  
First Lien Term Loan
  
LIBOR (Q)
    
-
      
10.25
%
    
10.92
%
9/24/2020
  
$
9,827,273
      
9,634,947
      
9,630,728
      
0.76
%
    
Kenneth Cole Productions, Inc.
  
First Lien FILO Term Loan
  
LIBOR (M)
    
1.00
%
    
8.50
%
    
9.50
%
9/25/2020
  
$
12,738,301
      
12,619,639
      
12,865,684
      
1.01
%
    
                                               
28,448,274
      
28,572,729
      
2.25
%
    
Satellite Telecommunications 
                                                                            
Avanti Communications Group, PLC (United Kingdom)
  
Sr Secured Notes
  
Fixed
    
-
      
10.00
%
    
10.00
%
10/1/2019
  
$
9,393,000
      
9,393,000
      
7,058,840
      
0.56
%
  
E/G/H
                                                                                  
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
      
39,321,320
      
3.10
%
  
E/G
                                                                                  
Software Publishing 
                                                                            
Acronis International GmbH (Switzerland)
  
First Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
9.50
%
    
10.50
%
6/9/2017
  
$
28,719,439
      
28,660,063
      
28,170,897
      
2.22
%
  
H
ArcServe (USA), LLC
  
Second Lien Term Loan
  
LIBOR (Q)
    
0.50
%
    
8.50
%
    
9.13
%
1/31/2020
  
$
30,028,125
      
29,605,659
      
28,016,241
      
2.21
%
    
Autoalert, LLC
  
First Lien Term Loan
  
LIBOR (Q)
    
0.25
%
  
4.75% Cash
+ 4% PIK
      
9.44
%
3/31/2019
  
$
35,267,436
      
34,843,159
      
35,159,870
      
2.77
%
    
BlackLine Systems, Inc.
  
First Lien Term Loan
  
LIBOR (Q)
    
1.50
%
  
0.4% Cash
+ 7.6% PIK
      
9.50
%
9/25/2018
  
$
15,115,023
      
14,466,578
      
15,115,023
      
1.19
%
    
BlackLine Systems, Inc.
  
Senior Secured 1st Lien Incremental Term Loan
  
LIBOR (Q)
    
1.50
%
  
0.4% Cash
+ 7.6% PIK
      
9.50
%
9/25/2018
  
$
3,809,896
      
3,742,949
      
3,809,896
      
0.30
%
    
BlackLine Systems, Inc.
  
Senior Secured Revolver
  
LIBOR (Q)
    
0.50
%
    
6.00
%
    
6.50
%
9/25/2018
  
$
–
      
-
      
-
      
-
      
Bluehornet Networks, Inc.
  
First Lien Term Loan
  
LIBOR (Q)
    
-
      
9.50
%
    
10.15
%
12/3/2020
  
$
5,911,694
      
5,753,056
      
5,734,343
      
0.45
%
    
Edmentum, Inc.
  
Jr Revolving Facility
  
Fixed
    
-
      
5.00
%
    
5.00
%
6/9/2020
  
$
2,762,241
      
2,762,241
      
2,762,241
      
0.22
%
  
B
Edmentum Ultimate Holdings, LLC
  
Sr PIK Notes
  
Fixed
    
-
      
8.50
%
    
8.50
%
6/9/2020
  
$
2,725,875
      
2,725,875
      
2,725,875
      
0.21
%
  
B
Edmentum Ultimate Holdings, LLC
  
Jr PIK Notes
  
Fixed
    
-
      
10.00
%
    
10.00
%
6/9/2020
  
$
12,395,233
      
11,835,221
      
11,924,214
      
0.94
%
  
B
Fidelis Acquisitionco, LLC
  
First Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
8.00
%
    
9.00
%
11/4/2019
  
$
42,349,121
      
41,693,444
      
42,200,899
      
3.32
%
    
Fidelis Acquisitionco, LLC
  
Sr Secured Revolver
  
LIBOR (Q)
    
1.00
%
    
8.00
%
    
9.00
%
11/4/2019
  
$
3,182,143
      
3,182,143
      
3,171,005
      
0.25
%
    
Newscycle Solutions, Inc.
  
Second Lien Term Loan
  
LIBOR (Q)
    
-
      
13.00
%
    
13.66
%
9/10/2021
  
$
11,513,362
      
11,170,722
      
11,167,962
      
0.88
%
    
Newscycle Solutions AB
  
Second Lien Term Loan B
  
LIBOR (Q)
    
-
      
13.00
%
    
13.66
%
9/10/2021
  
$
11,513,362
      
11,170,722
      
11,167,962
      
0.88
%
    
Soasta, Inc.
  
Senior Secured 1st Lien Term Loan (4.0% Exit Fees)
  
LIBOR (Q)
    
-
      
9.56
%
    
10.25
%
4/1/2019
  
$
17,880,435
      
17,617,584
      
17,650,671
      
1.39
%
  
L
Utilidata, Inc.
  
First Lien Delayed Draw Term Loan (1.0% Exit Fee)
  
LIBOR (M)
    
0.62
%
    
9.88
%
    
10.50
%
1/1/2019
  
$
3,200,000
      
3,106,557
      
3,000,000
      
0.24
%
  
L
Virgin Pulse Inc.
  
First Lien Term Loan
  
LIBOR (Q)
    
-
      
8.00
%
    
8.65
%
5/21/2020
  
$
7,500,000
      
7,411,126
      
7,500,000
      
0.59
%
    
                                               
229,747,099
      
229,277,099
      
18.06
%
    
Specialty Hospitals 
                                                                            
Pacific Coast Holdings Investment, LLC
  
Senior Secured 1st Lien Delayed Draw Term Loan
  
LIBOR (M)
    
2.00
%
    
9.70
%
    
11.70
%
10/23/2019
  
$
10,828,233
      
10,722,349
      
10,828,233
      
0.85
%
    
Sporting Goods, Hobby, and Musical Instrument Stores     
                                                               
Gander Mountain Company
  
Second Lien Term Loan
  
LIBOR (Q)
    
-
      
9.50
%
    
10.15
%
6/15/2018
  
$
11,465,152
      
11,350,599
      
11,350,501
      
0.89
%
    
                                                                                  
Textile Furnishings Mills 
                                                                            
Lexmark Carpet Mills, Inc.
  
First Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
10.00
%
    
11.00
%
12/19/2019
  
$
23,271,945
      
23,271,945
      
22,918,212
      
1.81
%
    
Lexmark Carpet Mills, Inc.
  
First Lien Term Loan B
  
LIBOR (Q)
    
1.00
%
    
10.00
%
    
11.00
%
12/19/2019
  
$
7,982,818
      
7,819,332
      
7,861,479
      
0.62
%
    
                                               
31,091,277
      
30,779,691
      
2.43
%
    
Utility System Construction  
                                                                          
Kawa Solar Holdings Limited
  
Revolving Credit Facility
  
Fixed
    
-
      
8.20
%
    
8.20
%
7/2/2017
  
$
25,000,000
      
25,000,000
      
25,000,000
      
1.97
%
    
                                                                                  
Wired Telecommunications Carriers    
                                                                    
Alpheus Communications, LLC
  
First Lien Delayed Draw FILO Term Loan
  
LIBOR (Q)
    
1.00
%
    
7.42
%
    
8.42
%
5/31/2018
  
$
1,701,070
      
1,685,793
      
1,693,885
      
0.13
%
    
Alpheus Communications, LLC
  
First Lien FILO Term Loan
  
LIBOR (Q)
    
1.00
%
    
7.42
%
    
8.42
%
5/31/2018
  
$
7,352,464
      
7,279,371
      
7,197,695
      
0.57
%
    
Integra Telecom Holdings, Inc.
  
Second Lien Term Loan
  
LIBOR (Q)
    
1.25
%
    
8.50
%
    
9.75
%
2/22/2020
  
$
13,231,193
      
13,060,960
      
12,238,854
      
0.97
%
    
Oxford County Telephone and Telegraph Company
  
First Lien Term Loan
  
LIBOR (Q)
    
1.00
%
    
7.13
%
    
8.13
%
8/31/2020
  
$
3,970,000
      
3,918,827
      
3,944,195
      
0.31
%
    
                                               
25,944,951
      
25,074,629
      
1.98
%
    
Wireless Telecommunications Carriers       
                                                                  
Gogo, LLC
  
Sr Secured Notes
  
Fixed
    
-
      
12.50
%
    
12.50
%
7/1/2022
  
$
10,000,000
      
10,000,000
      
9,912,500
      
0.78
%
  
E
                                                                                  
Total Debt Investments 
                                          
1,202,374,363
      
1,176,581,175
      
92.66
%
    
                                                                                  
TCP Capital Corp.
 
Consolidated Schedule of Investments (Unaudited) (Continued)
 
June 30, 2016
 
                                                       
% of Total
      
                          Total                      
Fair
    
Cash and
      
Issuer
  
Instrument
  
Ref
    
Floor
    
Spread
    
Coupon
    
Maturity
    
Shares
    
Cost
    
Value
    
Investments
    
Notes
                                                                          
Equity Securities 
                                                                    
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