Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide some color on your dividend spill-over and the target level for dividends? A: We declared a special dividend of $0.10 in Q4 2024, but did not distribute the full amount, leaving about $0.10 of carry-over into this quarter. Our approach to the regular dividend level is to ensure it is sustainable based on the current earnings power of the portfolio, considering factors like lower base rates and spread compression. We aim to provide strong total shareholder returns through regular dividends and special dividends.
Q: With the BlackRock-HPS acquisition, should we expect any strategic changes in your investment strategy? A: We do not expect meaningful changes. The acquisition highlights BlackRock's commitment to private credit and direct lending, and it will bring expanded resources, including enhanced sourcing capabilities and broader private credit expertise. We are excited about the complementary nature of HPS's US direct lending business with BlackRock's private market businesses.
Q: How confident are you that the recent write-downs represent a floor level for NAV, or should we expect more issues? A: We are focused on managing existing non-accruals and markdowns. The Razor markdown was unexpected due to a change in support from a recent equity investor. Most markdowns are from assets already on our watchlist. While there may be ongoing markdowns, they are largely centered around known issues.
Q: Regarding Renovo, what are the risks of incremental deterioration due to tariffs and slower demand? A: Renovo's issues stem from inflation and operational challenges, not tariffs. Their projects are smaller and less volatile, with domestic supply chains. While tariffs are a concern, they are not a significant issue for Renovo at this time.
Q: Is the decision to waive one-third of base management fees related to the timing of the HPS acquisition? A: The fee waiver is not related to the HPS acquisition timing. It is a thoughtful approach to acknowledge the NAV decline and support TCPC. The waiver is part of several actions, including a previous management fee reduction, to align with shareholder interests.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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