Declares Second Quarter 2015 Dividend of $0.36 Per Share
MENLO PARK, Calif.--(BUSINESS WIRE)--
TriplePoint Venture Growth BDC Corp. (NYSE: TPVG) (the “Company” or
"TPVG"), the leading financing provider to venture growth stage
companies backed by a select group of venture capital firms in the
technology, life sciences and other high growth industries, today
announced its financial results for the first quarter of 2015. TPVG also
declared a second quarter 2015 dividend of $0.36 per share.
First Quarter 2015 Highlights:
-
GAAP net investment income and core net investment income1
of $4.9 million ($0.48 per share) and $4.6 million ($0.45 per share),
respectively.
-
14.6% weighted average portfolio yield for the first quarter.
-
Declared a first quarter regular dividend of $0.36 per share, paid on
April 16, 2015.
-
Net increase in net assets resulting from operations of $0.27 per
share.
-
Net asset value of $14.48 per share as of March 31, 2015.
-
TriplePoint Capital, LLC (“TriplePoint Capital” or “TPC”) originated
$72.5 million of signed, non-binding term sheets to venture growth
stage companies.
-
Funded approximately $10.2 million in new investments and received
prepayments of $10.0 million in principal balance, resulting in a
total investment portfolio at March 31, 2015 of $251.7 million at fair
value.
-
Raised $93.7 million of net proceeds in first public equity offering
since IPO.
“We are pleased with our performance during this quarter, generating
strong net investment income in excess of our dividend, and completing
our first public equity offering since the IPO,” said Jim Labe, chief
executive officer and chairman of the board of TPVG. “We remain focused
on building the TPVG franchise, continuing to follow our investment
strategy of working closely with our select venture capital investors to
understand the capital needs of their venture growth stage companies,
and structuring attractive financing solutions to meet them.”
“We continue to grow our venture growth stage portfolio in a disciplined
manner,” said Sajal Srivastava, president and chief investment officer
of the Company. “We look forward to deploying the proceeds from our
recent equity offering to meet the strong demand from venture growth
stage companies and to continue delivering attractive returns to our
stockholders.”
Portfolio and Investment Activity
During the first quarter of 2015, the Company funded one debt investment
with $10.0 million in principal balance, funded one equity investment
for approximately $0.2 million, and acquired warrants valued at
approximately $0.3 million. One portfolio company prepaid $10.0 million
in principal balance of debt during the quarter. The weighted average
portfolio yield was 14.6% for the first quarter of 2015. Excluding the
impact of prepayments, the weighted average portfolio yield was 14.5%
for the quarter. The Company calculates weighted average portfolio yield
as the annualized rate of the interest income recognized during the
period divided by the average amortized cost of debt investments in the
portfolio at the beginning of each month in the period.
As of March 31, 2015, the Company had 74 investments in 26 companies.
The total cost and fair value of these investments were approximately
$252.1 million and $251.7 million, respectively.
The following table shows detailed information of the total investment
portfolio as of March 31, 2015.
|
|
As of March 31, 2015
|
(dollars in thousands)
|
|
Cost
|
|
Fair Value
|
|
Net Unrealized
Gains (Losses)
|
|
Number of
Investments
|
|
Number of
Companies
|
|
|
|
|
|
Debt Investments
|
|
$
|
243,088
|
|
$
|
240,143
|
|
$
|
(2,945
|
)
|
|
45
|
|
16
|
Warrants
|
|
|
6,282
|
|
|
8,250
|
|
|
1,968
|
|
|
24
|
|
24
|
Equity Investments
|
|
|
2,750
|
|
|
3,321
|
|
|
571
|
|
|
5
|
|
5
|
Totals
|
|
$
|
252,120
|
|
$
|
251,714
|
|
$
|
(406
|
)
|
|
74
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unfunded Commitments
As of March 31, 2015, the Company’s unfunded commitments totaled $153.5
million, $28.0 million of which is dependent upon customers reaching
certain milestones before being permitted to request funding. Of the
$153.5 million of unfunded commitments, $86.0 million will expire during
2015 and $67.5 million will expire during 2016 if not drawn prior to
expiration. Since these commitments may expire without being drawn upon,
unfunded commitments do not necessarily represent future cash
requirements or future earning assets for the Company.
Signed Term Sheets
During the first quarter, TriplePoint Capital originated $72.5 million
of signed, non-binding term sheets to venture growth stage companies.
All of these opportunities are subject to a number of conditions
including completion of due diligence, negotiation of definitive
documentation, and investment committee approval, as well as compliance
with TPC’s allocation policy. Accordingly, there is no assurance that
any or all of these transactions will be completed or assigned to the
Company even though the Company is the primary vehicle through which
TriplePoint Capital focuses its venture growth stage business.
Results of Operations
For the first quarter of 2015, the Company’s total investment and other
income was $9.8 million, representing a weighted average portfolio yield
of 14.6% on its debt investments during the quarter.
Operating expenses for the first quarter of 2015 were approximately $4.9
million, consisting of $1.6 million of interest expense and amortization
of deferred credit facility costs, $1.2 million of base management fees,
$1.2 million of income incentive fees, $0.3 million reversal of accrued
capital gains incentive fees, $0.4 million of administration agreement
expenses and $0.8 million of general and administrative expenses.
For the first quarter of 2015, the Company recorded net investment
income of approximately $4.9 million, or $0.48 per share. The Company’s
core net investment income1, which excludes the impact of the
capital gains incentive fee, was approximately $4.6 million, or $0.45
per share. The Company believes an important measure of the investment
income that the Company distributes each year is core net investment
income, since capital gains incentive fees are accrued based on net
realized and unrealized gains but are not earned until net realized
gains occur.
The Company had approximately $0.3 million, or $0.03 per share, in
realized losses during the first quarter of 2015 as a result of writing
off certain warrants. For the quarter, the Company’s net change in
unrealized losses was approximately $1.9 million, or $0.18 per share,
consisting of approximately $3.3 million for the reduction in fair value
of debt investments, and approximately $1.4 million for increases in the
fair value of warrants.
The Company’s net increase in net assets resulting from operations for
the first quarter of 2015 was approximately $2.7 million, or $0.27 per
share.
Credit Quality
The Company maintains a credit watch list with borrowers placed into one
of five categories based on management’s judgment of credit quality,
where Clear, or 1, is the highest rating and all new loans are initially
assigned a rating of White, or 2. During the three months ended March
31, 2015, one borrower was moved from White (2) to Clear (1), one
borrower was moved from Yellow (3) to Orange (4) and then to Red (5),
and one borrower rated Clear (1) was removed in conjunction with
prepaying all of its outstanding obligations. As of March 31, 2015, the
weighted average investment ranking of the Company’s debt investment
portfolio was 2.06, the same weighted average investment ranking as at
the end of the prior quarter.
The following table shows the credit rankings for the 16 companies with
which the Company has debt investments outstanding, as of March 31, 2015.
|
|
As of March 31, 2015
|
(dollars in thousands)
Category
|
|
Fair Value
|
|
Percentage of Debt Investment Portfolio
|
|
Number of Portfolio Companies
|
Clear (1)
|
|
$
|
29,596
|
|
12.3
|
%
|
|
1
|
White (2)
|
|
|
189,625
|
|
79.0
|
|
|
13
|
Yellow (3)
|
|
|
9,936
|
|
4.1
|
|
|
1
|
Orange (4)
|
|
|
-
|
|
-
|
|
|
-
|
Red (5)
|
|
|
10,986
|
|
4.6
|
|
|
1
|
|
|
$
|
240,143
|
|
100.0
|
%
|
|
16
|
|
|
|
|
|
|
|
|
|
In March 2015, the Company accelerated the outstanding obligations owed
by Coraid, Inc. (rated Red, or 5) and this obligor entered into a
foreclosure agreement that provided for a third party to purchase
certain assets and assume the outstanding obligations owed to the
Company. In conjunction with such developments, the Company recognized a
$3.5 million unrealized reduction in the fair value of the outstanding
loans. On April 15, 2015, the third party acquired the assets and
entered into a new loan agreement with the Company for the amounts owed.
Net Asset Value
As of March 31, 2015, the Company’s net assets were approximately $237.9
million, compared to approximately $145.0 million as of December 31,
2014. The increase in aggregate net assets was primarily the result of
the proceeds of the Company’s public offering of common stock at the end
of the first quarter. The Company’s net asset value per share as of
March 31, 2015 was $14.48 per share, compared to $14.61 per share as of
December 31, 2014. The decrease in net asset value per share was the
result of the Company’s dividends exceeding the net increase in net
assets resulting in operations for the period, and the offering costs
associated with the public offering of common stock charged to paid-in
capital. The per share calculations are based on the Company’s shares of
common stock outstanding as of the end of the respective periods.
Liquidity and Capital Resources
On March 27, 2015, the Company priced a public offering of 6.5 million
shares of its common stock, raising approximately $93.7 million after
offering costs. As of March 31, 2015, the Company had total cash of
approximately $18.3 million, a receivable of $94.6 million related to
the equity offering (which was received on April 1, 2015), and available
capacity of $80.0 million under its revolving credit facility.
Dividend
The Company’s board of directors declared a quarterly dividend of $0.36
per share for the second quarter of 2015 payable on June 16, 2015, to
stockholders of record as of May 29, 2015.
Subsequent Events
Since March 31, 2015:
-
The Company entered into $25.0 million of new venture growth stage
commitments.
-
TriplePoint Capital’s direct originations platform entered into $23.0
million of additional non-binding signed term sheets with venture
growth stage companies.
Conference Call
The Company will host a conference call at 5:00 p.m. Eastern time today,
May 6, 2015, to discuss its financial results for the quarter ending
March 31, 2015. To listen to the call, investors and analysts should
dial 877-201-0186 (domestic) or 647-788-4901 (international) and enter
conference ID 34792602. Please dial in at least five minutes before the
scheduled start time. A replay of the call will be available through May
20, 2015, by dialing 855-859-2056 (domestic) or 404-537-3406
(international) and entering conference ID 34782602. The conference call
also will be available via a live audio webcast in the investor
relations section of the Company’s website, http://www.tpvg.com.
An online archive of the webcast will be available on the Company’s
website for 30 days after the call.
About TriplePoint Venture Growth BDC Corp.
TriplePoint Venture Growth BDC Corp. (the “Company”) (NYSE: TPVG) is an
externally managed, closed-end, non-diversified management investment
company that has elected to be regulated as a business development
company under the Investment Company Act of 1940, as amended. It was
formed to expand the venture growth stage business segment of
TriplePoint Capital LLC. The Company’s investment objective is to
maximize its total return to stockholders primarily in the form of
current income and, to a lesser extent, capital appreciation by
primarily lending with warrants to venture growth stage companies
focused in technology, life sciences and other high growth industries
backed by a select group of leading venture capital investors. More
information is available at http://www.tpvg.com.
Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking statements as such term is defined in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and such statements are intended to be
covered by the safe harbor provided by the same. Forward-looking
statements are subject to substantial risks and uncertainties, many of
which are difficult to predict and are generally beyond the Company's
control. Words such as "anticipates," "expects," "intends," "plans,"
"will," "may," "continue," "believes," "seeks," "estimates," "would,"
"could," "should," "targets," "projects," and variations of these words
and similar expressions are intended to identify forward-looking
statements. For a further list and description of such risks and
uncertainties, see the Company's final prospectus filed with the
Securities and Exchange Commission on March 30, 2015, annual report on
Form 10-K for the year ended December 31, 2014 filed with the Securities
and Exchange Commission on March 18, 2015, and other reports filed by
the Company with the Securities and Exchange Commission. The
forward-looking statements, and other risks, uncertainties and factors
are based on the Company's beliefs, assumptions and expectations of its
future performance, taking into account all information currently
available to the Company. Forward-looking statements are not predictions
of future events. The Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by law.
|
TRIPLEPOINT VENTURE GROWTH BDC CORP
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(dollars in thousands, except share data)
|
|
|
|
|
|
|
|
March 31, 2015
|
|
December 31, 2014
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
Investments at fair value (amortized cost of $252,120 and $256,485,
respectively)
|
|
$
|
251,714
|
|
|
$
|
257,971
|
|
Short-term investments at fair value (cost of $0 and $49,998,
respectively)
|
|
|
-
|
|
|
|
49,995
|
|
Cash
|
|
|
9,820
|
|
|
|
6,906
|
|
Restricted cash
|
|
|
8,481
|
|
|
|
8,033
|
|
Receivable related to public offering of common stock
|
|
|
94,575
|
|
|
|
-
|
|
Deferred credit facility costs and prepaid expenses
|
|
|
2,874
|
|
|
|
3,424
|
|
Total Assets
|
|
|
367,464
|
|
|
|
326,329
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Revolving credit facility payable
|
|
|
120,000
|
|
|
|
118,000
|
|
Payable for U.S. Treasury bill assets
|
|
|
-
|
|
|
|
49,998
|
|
Other payables, accrued expenses, and liabilities
|
|
|
9,591
|
|
|
|
13,352
|
|
Total Liabilities
|
|
|
129,591
|
|
|
|
181,350
|
|
|
|
|
|
|
Net Assets
|
|
$
|
237,873
|
|
|
$
|
144,979
|
|
|
|
|
|
|
Preferred stock, par value $0.01 per share (50,000,000 shares
authorized; no shares issued and outstanding as of March 31, 2015
and December 31, 2014)
|
|
$
|
-
|
|
|
$
|
-
|
|
Common stock, par value $0.01 per share (450,000,000 shares
authorized; 16,424,171 and 9,924,171 shares issued and outstanding
as of March 31, 2015 and December 31, 2014, respectively)
|
|
|
164
|
|
|
|
99
|
|
Paid-in capital in excess of par value
|
|
|
236,298
|
|
|
|
142,635
|
|
Net investment income
|
|
|
17,753
|
|
|
|
12,808
|
|
Accumulated net realized losses
|
|
|
(317
|
)
|
|
|
-
|
|
Accumulated net unrealized (losses) gains
|
|
|
(406
|
)
|
|
|
1,483
|
|
Dividend distributions
|
|
|
(15,619
|
)
|
|
|
(12,046
|
)
|
Net Assets
|
|
$
|
237,873
|
|
|
$
|
144,979
|
|
|
|
|
|
|
Net Asset Value per Share
|
|
$
|
14.48
|
|
|
$
|
14.61
|
|
|
|
|
|
|
|
|
|
|
|
TRIPLEPOINT VENTURE GROWTH BDC CORP
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except share data)
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
2015
|
|
For the Period from March 5, 2014 (Commencement
of Operations) to March 31, 2014
|
Investment Income
|
|
|
|
|
Interest income from investments
|
|
$
|
9,161
|
|
|
$
|
1,308
|
Other income
|
|
|
647
|
|
|
|
-
|
Total investment and other income
|
|
|
9,808
|
|
|
|
1,308
|
|
|
|
|
|
Operating Expenses
|
|
|
|
|
Base management fee
|
|
|
1,159
|
|
|
|
144
|
Income incentive fee
|
|
|
1,162
|
|
|
|
-
|
Capital gains incentive fee
|
|
|
(296
|
)
|
|
|
275
|
Interest expense and amortization of fees
|
|
|
1,644
|
|
|
|
154
|
Administration agreement expenses
|
|
|
371
|
|
|
|
52
|
General and administrative expenses
|
|
|
823
|
|
|
|
114
|
Total Operating Expenses
|
|
|
4,863
|
|
|
|
739
|
|
|
|
|
|
Net investment income
|
|
|
4,945
|
|
|
|
569
|
Net realized losses
|
|
|
(317
|
)
|
|
|
-
|
Net change in unrealized (losses) gains on investments
|
|
|
(1,889
|
)
|
|
|
1,374
|
|
|
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
$
|
2,739
|
|
|
$
|
1,943
|
|
|
|
|
|
Basic and diluted net investment income per share
|
|
$
|
0.48
|
|
|
$
|
0.06
|
Basic and diluted net increase in net assets per share
|
|
$
|
0.27
|
|
|
$
|
0.20
|
Basic and diluted weighted average shares of common stock
outstanding
|
|
|
10,285,282
|
|
|
|
9,842,333
|
|
|
|
|
|
|
|
|
|
TRIPLEPOINT VENTURE GROWTH BDC CORP
FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
2015
|
|
For the Period from March 5, 2014 (Commencement of
Operations) to March 31, 2014
|
|
|
|
|
|
Weighted average portfolio yield (1)
|
|
14.6
|
%
|
|
14.3
|
%
|
Coupon income (1)
|
|
11.0
|
%
|
|
11.2
|
%
|
Net amortization and accretion of premiums and discounts (1)
|
|
0.6
|
%
|
|
0.1
|
%
|
Net accretion of end-of-term payments (1)
|
|
2.9
|
%
|
|
3.0
|
%
|
Impact of prepayments (1)
|
|
0.1
|
%
|
|
0.0
|
%
|
|
|
|
|
|
Net investment income to average net asset value (2)
|
|
13.2
|
%
|
|
5.4
|
%
|
Net increase in net assets to average net asset value (2)
|
|
7.3
|
%
|
|
18.4
|
%
|
|
|
|
|
|
Total operating expenses to average net asset value (2)
|
|
13.0
|
%
|
|
5.5
|
%
|
Operating expenses excluding incentive fees to average net asset
value (2)
|
|
10.7
|
%
|
|
2.9
|
%
|
Income component of incentive fees to average net asset value (2)
|
|
3.1
|
%
|
|
0.0
|
%
|
Capital gains component of incentive fees to average net asset value
(2)
|
|
(0.8
|
)%
|
|
2.6
|
%
|
|
|
|
|
|
|
|
(1)
|
Weighted average portfolio yields for periods shown are the
annualized rate of the interest income recognized during the period
divided by the average amortized cost of debt investments in the
portfolio at the beginning of each month in the period.
|
(2)
|
Percentage is presented on an annualized basis.
|
|
|
The following table provides a reconciliation of net investment income
to core net investment income for the three months ended March 31, 2015,
and for the period from March 5, 2014 (commencement of operations) to
March 31, 2014.
|
TRIPLEPOINT VENTURE GROWTH BDC CORP
RECONCILIATION OF CORE NET INVESTMENT INCOME
(dollars in thousands, except share data)
|
|
|
|
|
|
Net Investment Income and Core Net Investment Income (dollars
in thousands, except per share amounts)
|
|
For the Three Months Ended March
31, 2015
|
|
For the Period From March 5, 2014 (Commencement
of Operations) to March 31, 2014
|
Net Investment Income
|
|
$
|
4,945
|
|
$
|
569
|
Capital gains incentive fee
|
|
|
(296)
|
|
|
275
|
Core Net Investment Income
|
|
$
|
4,649
|
|
$
|
844
|
|
|
|
|
|
|
|
Net Investment Income per Share
|
|
$
|
0.48
|
|
$
|
0.06
|
Capital gains incentive fee per share
|
|
|
(0.03)
|
|
|
0.03
|
Core Net Investment Income per Share
|
|
$
|
0.45
|
|
$
|
0.09
|
|
|
|
|
|
|
|
For the three months ended March 31, 2015, the Company recorded a
reversal in accrued capital gains incentive fee of approximately $0.3
million and for the period from March 5, 2014 (commencement of
operations) to March 31, 2014, the Company recorded accrued capital
gains incentive fee of approximately $0.3 million. The capital gains
incentive fee accrual, as reported under generally accepted accounting
principles, is calculated on the basis of net realized and unrealized
gains and losses at the end of each period. The accrued capital gains
incentive fee related to the hypothetical liquidation of the portfolio
(and assuming no other changes in realized or unrealized gains and
losses) would only have become payable to its investment adviser in the
event of a complete liquidation of its portfolio as of period end and
the termination of the Investment Advisory Agreement (“Agreement”).
The amount of the capital gains incentive fee, if any, which will
actually be payable is determined in accordance with the terms of the
Agreement and is calculated as of the end of each calendar year (or upon
termination of the Agreement). The terms of the Agreement state that the
capital gains incentive fee calculation is based on net realized gains,
if any, offset by gross unrealized depreciation for the calendar year.
No effect is given to gross unrealized appreciation in this calculation.
1 Core net investment income is a non-GAAP measure and is
provided in addition to, but not as a substitute for, net investment
income. Core net investment income represents net investment income
excluding the Company’s capital gains incentive fee.
Source: TriplePoint Venture Growth BDC Corp.