TriplePoint Venture Growth BDC Corp. Announces First Quarter 2024 Financial Results
Achieved Net Investment Income of
DECLARES SECOND QUARTER 2024 DISTRIBUTION OF
First Quarter 2024 Highlights
-
Signed
$130.5 million of term sheets with venture growth stage companies atTriplePoint Capital LLC (“TPC”) and TPVG closed$10.0 million of new debt commitments to venture growth stage companies; -
Funded
$13.5 million in debt investments to three portfolio companies with a 14.3% weighted average annualized yield at origination; -
Received
$30.8 million of loan principal prepayments; - Achieved a 15.4% weighted average annualized portfolio yield on debt investments for the quarter1;
-
Earned net investment income of
$15.5 million , or$0.41 per share; -
Generated total investment income of
$29.3 million ; - Realized an 17.9% return on average equity, based on net investment income during the quarter;
-
Eight debt portfolio companies raised an aggregate
$583.6 million of capital in private financings during the quarter; -
Held debt investments in 49 portfolio companies, warrants in 97 portfolio companies and equity investments in 46 portfolio companies as of
March 31, 2024 ; - Debt investment portfolio weighted average investment ranking of 2.21 as of quarter’s end;
-
Raised
$1.3 million of net proceeds under the at-the-market equity offering program (“ATM Program”); -
Net asset value of
$341.3 million , or$9.02 per share, as ofMarch 31, 2024 ; -
Total liquidity of
$311.8 million and total unfunded commitments of$73.1 million ; - Ended the quarter with a 1.27x gross leverage ratio; and
-
Declared a second quarter distribution of
$0.40 per share, payable onJune 28, 2024 ; bringing total declared distributions to$15.45 per share since the Company’s initial public offering.
“During the first quarter, we continued to navigate through the current market and position TPVG for improving conditions,” said
“We remain focused on our long-term goals and priorities,” said
PORTFOLIO AND INVESTMENT ACTIVITY
During the three months ended
_________________
1 Please see the last table in this press release, titled "Weighted Average Portfolio Yield on Debt Investments," for more information on the calculation of the weighted average annualized portfolio yield on debt investments.
As of
The following table shows the total portfolio investment activity for the three months ended
|
|
For the Three Months Ended
|
||||||
(in thousands) |
|
2024 |
|
2023 |
||||
Beginning portfolio at fair value |
|
$ |
802,145 |
|
|
$ |
949,276 |
|
New debt investments, net(a) |
|
|
13,155 |
|
|
|
56,374 |
|
Scheduled principal amortization |
|
|
(6,812 |
) |
|
|
(16,591 |
) |
Principal prepayments and early repayments |
|
|
(30,842 |
) |
|
|
(3,400 |
) |
Net amortization and accretion of premiums and discounts and end-of-term payments |
|
|
405 |
|
|
|
5,318 |
|
Payment-in-kind coupon |
|
|
3,787 |
|
|
|
2,085 |
|
New warrant investments |
|
|
165 |
|
|
|
130 |
|
New equity investments |
|
|
396 |
|
|
|
503 |
|
Proceeds from dispositions of investments |
|
|
(1,106 |
) |
|
|
— |
|
Net realized gains (losses) on investments |
|
|
(8,951 |
) |
|
|
— |
|
Net change in unrealized gains (losses) on investments |
|
|
1,263 |
|
|
|
(10,867 |
) |
Ending portfolio at fair value |
|
$ |
773,605 |
|
|
$ |
982,828 |
|
_____________ |
||||||||
(a) Debt balance is net of fees and discounts applied to the loan at origination. |
SIGNED TERM SHEETS
During the three months ended
UNFUNDED COMMITMENTS
As of
RESULTS OF OPERATIONS
Total investment and other income was
Operating expenses for the first quarter of 2024 were
For the first quarter of 2024, the Company recorded net investment income of
During the first quarter of 2024, the Company recognized net realized losses on investments of
Net change in unrealized gains on investments for the first quarter of 2024 was
The Company’s net increase in net assets resulting from operations for the first quarter of 2024 was
CREDIT QUALITY
The Company maintains a credit watch list with portfolio companies placed into one of five credit categories, with Clear, or 1, being the highest rating and Red, or 5, being the lowest. Generally, all new loans receive an initial grade of White, or 2, unless the portfolio company’s credit quality meets the characteristics of another credit category.
As of
The following table shows the credit categories for the Company’s debt investments at fair value as of
|
|
|
|
|
||||||||||||
Credit Category
|
|
Fair Value |
|
Percentage of
|
|
Number of
|
|
Fair Value |
|
Percentage of
|
|
Number of
|
||||
Clear (1) |
|
$ |
79,702 |
|
11.5 |
% |
|
6 |
|
$ |
100,309 |
|
13.8 |
% |
|
7 |
White (2) |
|
|
445,763 |
|
64.1 |
|
|
30 |
|
|
471,195 |
|
64.5 |
|
|
28 |
Yellow (3) |
|
|
112,168 |
|
16.1 |
|
|
7 |
|
|
117,792 |
|
16.1 |
|
|
8 |
Orange (4) |
|
|
56,788 |
|
8.2 |
|
|
5 |
|
|
40,091 |
|
5.5 |
|
|
5 |
Red (5) |
|
|
770 |
|
0.1 |
|
|
1 |
|
|
908 |
|
0.1 |
|
|
1 |
|
|
$ |
695,191 |
|
100.0 |
% |
|
49 |
|
$ |
730,295 |
|
100.0 |
% |
|
49 |
NET ASSET VALUE
As of
LIQUIDITY AND CAPITAL RESOURCES
As of
The Company maintains an ATM Program with
DISTRIBUTION
On
RECENT DEVELOPMENTS
Since
-
TPC’s direct originations platform entered into
$29.3 million of additional non-binding signed term sheets with venture growth stage companies; -
The Company closed
$20.5 million of additional debt commitments; -
TFG Holding, Inc. was acquired; and -
The Company entered into an amendment to the Revolving Credit Facility to, among other things, extend the revolving period to
August 31, 2024 .
CONFERENCE CALL
The Company will host a conference call at
ABOUT
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute forward-looking statements. Forward-looking statements are not guarantees of future performance, investment activity, financial condition or results of operations and involve a number of 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. Actual events, investment activity, performance, condition or results may differ materially from those in the forward-looking statements as a result of a number of factors, including as a result of changes in economic, market or other conditions, and the impact of such changes on the Company’s and its portfolio companies’ results of operations and financial condition, and those factors described from time to time in the Company’s filings with the
|
|||||||
Consolidated Statements of Assets and Liabilities |
|||||||
(in thousands, except per share data) |
|||||||
|
|
|
|
||||
Assets |
(unaudited) |
|
|
||||
Investments at fair value (amortized cost of |
$ |
773,605 |
|
|
$ |
802,145 |
|
Cash and cash equivalents |
|
124 |
|
|
|
153,328 |
|
Restricted cash |
|
639 |
|
|
|
18,254 |
|
Deferred credit facility costs |
|
2,360 |
|
|
|
2,714 |
|
Prepaid expenses and other assets |
|
5,902 |
|
|
|
2,384 |
|
Total assets |
$ |
782,630 |
|
|
$ |
978,825 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Revolving Credit Facility |
$ |
39,000 |
|
|
$ |
215,000 |
|
2025 Notes, net |
|
69,790 |
|
|
|
69,738 |
|
2026 Notes, net |
|
199,152 |
|
|
|
199,041 |
|
2027 Notes, net |
|
124,187 |
|
|
|
124,117 |
|
Income incentive fee payable |
|
— |
|
|
|
— |
|
Base management fee payable |
|
4,302 |
|
|
|
4,490 |
|
Other accrued expenses and liabilities |
|
4,932 |
|
|
|
20,133 |
|
Total liabilities |
$ |
441,363 |
|
|
$ |
632,519 |
|
|
|
|
|
||||
Net assets |
|
|
|
||||
Preferred stock, par value |
$ |
— |
|
|
$ |
— |
|
Common stock, par value |
|
378 |
|
|
|
376 |
|
Paid-in capital in excess of par value |
|
495,015 |
|
|
|
492,934 |
|
Total distributable earnings (loss) |
|
(154,126 |
) |
|
|
(147,004 |
) |
Total net assets |
$ |
341,267 |
|
|
$ |
346,306 |
|
Total liabilities and net assets |
$ |
782,630 |
|
|
$ |
978,825 |
|
|
|
|
|
||||
Shares of common stock outstanding (par value |
|
37,846 |
|
|
|
37,620 |
|
Net asset value per share |
$ |
9.02 |
|
|
$ |
9.21 |
|
|
|||||||
Consolidated Statements of Operations |
|||||||
(in thousands, except per share data) |
|||||||
|
For the Three Months Ended
|
||||||
|
2024 |
|
2023 |
||||
|
(unaudited) |
|
(unaudited) |
||||
Investment income |
|
|
|
||||
Interest income from investments |
$ |
28,527 |
|
|
$ |
32,254 |
|
Other income |
|
746 |
|
|
|
1,375 |
|
Total investment and other income |
$ |
29,273 |
|
|
$ |
33,629 |
|
|
|
|
|
||||
Operating expenses |
|
|
|
||||
Base management fee |
$ |
4,302 |
|
|
$ |
4,311 |
|
Income incentive fee |
|
— |
|
|
|
— |
|
Interest expense and amortization of fees |
|
7,011 |
|
|
|
9,245 |
|
Administration agreement expenses |
|
611 |
|
|
|
573 |
|
General and administrative expenses |
|
1,826 |
|
|
|
921 |
|
Total operating expenses |
$ |
13,750 |
|
|
$ |
15,050 |
|
|
|
|
|
||||
Net investment income |
$ |
15,523 |
|
|
$ |
18,579 |
|
|
|
|
|
||||
Net realized and unrealized gains/(losses) |
|
|
|
||||
Net realized gains (losses) on investments |
$ |
(8,807 |
) |
|
$ |
(33 |
) |
Net change in unrealized gains (losses) on investments |
|
1,263 |
|
|
|
(10,867 |
) |
Net realized and unrealized gains/(losses) |
$ |
(7,544 |
) |
|
$ |
(10,900 |
) |
|
|
|
|
||||
Net increase (decrease) in net assets resulting from operations |
$ |
7,979 |
|
|
$ |
7,679 |
|
|
|
|
|
||||
Per share information (basic and diluted) |
|
|
|
||||
Net investment income per share |
$ |
0.41 |
|
|
$ |
0.53 |
|
Net increase (decrease) in net assets per share |
$ |
0.21 |
|
|
$ |
0.22 |
|
Weighted average shares of common stock outstanding |
|
37,649 |
|
|
|
35,349 |
|
|
|
|
|
||||
Total distributions declared per share |
$ |
0.40 |
|
|
$ |
0.40 |
|
Weighted Average Portfolio Yield |
||||||
on Debt Investments |
||||||
Ratios
|
|
For the Three Months Ended
|
||||
|
2024 |
|
2023 |
|||
Weighted average portfolio yield on debt investments(2) |
|
15.4 |
% |
|
14.7 |
% |
Coupon income |
|
12.2 |
% |
|
11.8 |
% |
Accretion of discount |
|
0.9 |
% |
|
1.2 |
% |
Accretion of end-of-term payments |
|
1.6 |
% |
|
1.7 |
% |
Impact of prepayments during the period |
|
0.7 |
% |
|
— |
% |
_____________ | ||
(1) |
Weighted average portfolio yields on debt investments for periods shown are the annualized rates of interest income recognized during the period divided by the average amortized cost of debt investments in the portfolio during the period. The calculation of weighted average portfolio yields on debt investments excludes any non-income producing debt investments, but includes debt investments on non-accrual status. The weighted average yields reported for these periods are annualized and reflect the weighted average yields to maturities. |
|
(2) |
The weighted average portfolio yields on debt investments reflected above do not represent actual investment returns to the Company’s stockholders. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501193038/en/
INVESTOR RELATIONS AND MEDIA CONTACT
212-477-8438
lberman@igbir.com
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