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Blackrock Capital Investment posted its Q4 net investment income in line with the average analyst estimate and slightly exceeded the consensus on total investment. However, a drop in its net asset value was observed due to realized and unrealized losses on its portfolio.
Q4 Performance Highlights
Adjusted net investment income per share for Q4 stood at $0.12, meeting the consensus estimate. This figure slipped from $0.13 in Q3 but was an improvement from $0.11 in the same period of the previous year.
Total investment income for the quarter came in at $20.3M, surpassing the average analyst estimate of $20.1M. Although this reflected a decline from the previous quarter’s $21.3M, it marked an increase from $17.5M in the year-ago quarter.
The net asset value per share dropped to $4.35 as of December 31, 2023, down from $4.38 at the end of September.
Market Reaction and Investment Activities
Following the earnings release, BlackRock Capital Investment (BKCC) stock experienced a 1.3% decline in after-hours trading on Tuesday.
Gross deployments during the quarter amounted to $25.4M, with a significant portion in first lien loans at an average yield of 11.9%. In contrast, gross repayments for the same period totaled $12.6M. The company’s total portfolio companies increased to 121 compared to 120 in the prior quarter.
As of December 31, 2023, the weighted average portfolio yield stood at 12.7% based on the total fair value of the portfolio, a marginal decrease from 12.8% at the end of September. Net leverage increased to 0.91x at the end of December from 0.84x at the end of September.
Chairman’s Perspective and Strategic Move
James E. Keenan, Chairman and interim CEO, expressed, “We selectively expanded our portfolio during the quarter through new investments in first lien loans. Over recent quarters, we have successfully diversified and fortified the portfolio while identifying appealing investment prospects.”
In a strategic move back in September, BlackRock Capital Investment (BKCC) agreed to merge with BlackRock TCP Capital (TCPC).
