BLACKROCK CAPITAL INVESTMENT CORPORATION (NASDAQ:BKCC) Files An 8-K Regulation FD DisclosureITEM 7.01.
BlackRock Advisors, LLC (the “Advisor”) began serving as the investment manager of BlackRock Capital Investment Corporation (the “Company”) on March 6, 2015, the date on which the Advisor acquired certain assets of the Company’s previous investment adviser (the “Acquisition Date”). For the Advisor’s marketing purposes unrelated to the Company, the Advisor has calculated an implied IRR (internal rate of return) for that portion of the Company’s portfolio which was invested on or after the Acquisition Date. As a result, we are providing the information below. The calculation covers a period (the “Calculation Period”) beginning on the Acquisition Date and ending on December 31, 2016 (the “Calculation End Date”).
The implied IRR calculation includes the performance of all new monies invested during the Calculation Period. For such investments exited during the Calculation Period, all actual cash inflows and outflows during the Calculation Period which were attributable to the investment were used to calculate the implied IRR. For all other such investments, the implied IRR was calculated using (i) all actual cash inflows and outflows during the Calculation Period which were attributable to the investment and (ii) assuming that the fair market value of the investment as well as any accrued but unpaid interest on the Calculation End Date were realized in cash as of such date.
For the Calculation Period, such implied IRR was 14.6%, based on $480 million of cash invested in 25 different investments across 21 companies, of which 3 investments across 3 companies were exited during the Calculation Period. For the Calculation Period, the implied IRR on these 3 exited investments was 24.8% based on $67 million of cash invested. The implied IRR for the remaining 22 investments across 18 companies was 13.7% based on $412 million of cash invested.
Internal rate of return is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the sale, repayment or other exit of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized.
The implied IRRs are calculated using cash flows which are gross of any fees, costs or expenses incurred by the Company. The implied IRRs shown above reflect only the performance of new monies invested during the Calculation Period and not the performance of the entire investment portfolio of the Company over any period of time. We would expect that any such implied IRR for the entire investment portfolio would be lower than the implied IRRs shown here. Existing or prospective investors should not rely upon the implied IRRs shown above as a measure of the performance of the Company or its portfolio. There can be no assurance that these implied IRRs could be generated in the future for any investment.
The information disclosed under this Item 7.01 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
About BLACKROCK CAPITAL INVESTMENT CORPORATION (NASDAQ:BKCC)
BlackRock Capital Investment Corporation, formerly BlackRock Kelso Capital Corporation, is an externally-managed, non-diversified, closed-end management investment company. The Company’s investment objective is to generate both current income and capital appreciation through its debt and equity investments. The Company provides middle-market companies with a range of financing solutions, including senior and junior secured, unsecured and subordinated debt securities and loans, and equity securities. The Company invests in middle-market companies with annual revenues typically between $50 million and $1 billion and targets investments throughout the capital structure. Its targeted investment typically ranges between $10 million and $50 million. The Company generally seeks to invest in companies that operate in a range of industries and that generate positive cash flows. The Company’s investment advisor is BlackRock Advisors, LLC. BLACKROCK CAPITAL INVESTMENT CORPORATION (NASDAQ:BKCC) Recent Trading Information
BLACKROCK CAPITAL INVESTMENT CORPORATION (NASDAQ:BKCC) closed its last trading session up +0.08 at 7.36 with 268,758 shares trading hands.
