TriplePoint Venture Growth BDC Corp. Announces Second Quarter 2024 Financial Results
Increase in Signed Term Sheets, Closed Commitments and Fundings
Received
Renews Revolving Credit Facility
Declares Third Quarter 2024 Distribution of
Second Quarter 2024 Highlights
-
Signed
$188.4 million of term sheets with venture growth stage companies atTriplePoint Capital LLC (“TPC”), representing a 44% increase from the prior quarter, and TPVG closed$52.0 million of new debt commitments to venture growth stage companies, representing a 420% increase from the prior quarter; -
Funded
$38.7 million in debt investments, representing an increase of 186% from the prior quarter, to five portfolio companies with a 15.5% weighted average annualized yield at origination; -
Received
$97.0 million from liquidity events comprised of$51.2 million of loan principal prepayments,$27.9 million of scheduled principal amortization,$14.7 million in cash proceeds from the disposition of debt investments and$3.2 million in cash proceeds from the sale of warrant and equity investments; - Achieved a 15.8% weighted average annualized portfolio yield on debt investments for the quarter1;
-
Earned net investment income of
$12.6 million , or$0.33 per share; -
Generated total investment income of
$27.1 million ; - Realized an 14.6% return on average equity, based on net investment income during the quarter;
-
Nine debt portfolio companies raised an aggregate
$442.6 million of capital in private financings during the quarter; -
Held debt investments in 44 portfolio companies, warrants in 94 portfolio companies and equity investments in 46 portfolio companies as of
June 30, 2024 ; - Debt investment portfolio weighted average investment ranking of 2.24 as of quarter’s end;
-
Raised
$18.2 million of net proceeds under the at-the-market equity offering program (“ATM Program”); -
Net asset value of
$353.0 million , or$8.83 per share, as ofJune 30, 2024 ; -
Total liquidity of
$340.7 million (giving effect to the Revolving Credit Facility renewal post quarter-end) and total unfunded commitments of$71.4 million ; - Ended the quarter with a 1.15x gross leverage ratio;
-
Declared a second quarter distribution of
$0.30 per share, payable onSeptember 30, 2024 ; bringing total declared distributions to$15.75 per share since the Company’s initial public offering; and -
Subsequent to the end of the quarter, the Company renewed its Revolving Credit Facility to, among other things, extend the revolving period to
November 30, 2025 and the scheduled maturity date toMay 30, 2027 , as well as set total commitments to$300 million .
Year to Date 2024 Highlights
-
Earned net investment income of
$28.1 million , or$0.74 per share; -
Generated total investment income of
$56.4 million ; -
Paid distributions of
$0.80 per share; -
Signed
$318.8 million of term sheets with venture growth stage companies at TPC and TPVG closed$62.0 million of new debt commitments to venture growth stage companies; -
Funded
$52.2 million in debt investments to seven portfolio companies with a 15.2% weighted average annualized portfolio yield at origination; -
16 portfolio companies raised an aggregate
$1.0 billion of capital in private financings; - Achieved a 15.6% weighted average annualized portfolio yield on total debt investments 1 ;
-
In
April 2024 ,DBRS, Inc. issued TPVG’s investment grade rating, with a BBB (low) Long-Term Issuer rating, with a stable trend outlook; -
Raised
$19.4 million of net proceeds under the ATM Program; and -
Estimated undistributed taxable earnings from net investment income (or “spillover income”) of
$39.3 million , or$0.98 per share, as ofJune 30, 2024 .
_____________ |
||
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. |
“Given continued challenges in the venture capital markets, we remained on our path of selectively increasing our investment activity and positioning TPVG for the future,” said
“During the quarter, we took steps to build a strong foundation for the future,“ said
PORTFOLIO AND INVESTMENT ACTIVITY
During the three months ended
As of
The following table shows the total portfolio investment activity for the three and six months ended
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
(in thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Beginning portfolio at fair value |
|
$ |
773,605 |
|
|
$ |
982,828 |
|
|
$ |
802,145 |
|
|
$ |
949,276 |
|
New debt investments, net(a) |
|
|
37,727 |
|
|
|
30,164 |
|
|
|
50,882 |
|
|
|
86,538 |
|
Scheduled principal amortization |
|
|
(27,884 |
) |
|
|
(1,666 |
) |
|
|
(34,696 |
) |
|
|
(18,257 |
) |
Principal prepayments and early repayments |
|
|
(51,239 |
) |
|
|
(33,750 |
) |
|
|
(82,081 |
) |
|
|
(37,150 |
) |
Net amortization and accretion of premiums and discounts and end-of-term payments |
|
|
2,185 |
|
|
|
4,172 |
|
|
|
2,589 |
|
|
|
9,490 |
|
Payment-in-kind coupon |
|
|
3,821 |
|
|
|
2,597 |
|
|
|
7,609 |
|
|
|
4,682 |
|
New warrant investments |
|
|
271 |
|
|
|
38 |
|
|
|
436 |
|
|
|
168 |
|
New equity investments |
|
|
404 |
|
|
|
433 |
|
|
|
800 |
|
|
|
936 |
|
Proceeds from dispositions of investments |
|
|
(21,036 |
) |
|
|
(3,173 |
) |
|
|
(22,142 |
) |
|
|
(3,173 |
) |
Net realized gains (losses) on investments |
|
|
(18,943 |
) |
|
|
1,863 |
|
|
|
(27,894 |
) |
|
|
1,863 |
|
Net change in unrealized gains (losses) on investments |
|
|
14,859 |
|
|
|
(41,551 |
) |
|
|
16,122 |
|
|
|
(52,418 |
) |
Ending portfolio at fair value |
|
$ |
713,770 |
|
|
$ |
941,955 |
|
|
$ |
713,770 |
|
|
$ |
941,955 |
|
_____________ |
||||||||||||||||
(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 second quarter of 2024 were
For the second quarter of 2024, the Company recorded net investment income of
During the second quarter of 2024, the Company recognized net realized losses on investments of
Net change in unrealized gains on investments for the second quarter of 2024 was
The Company’s net increase in net assets resulting from operations for the second 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) |
|
$ |
61,473 |
|
10.0 |
% |
|
4 |
|
$ |
100,309 |
|
13.8 |
% |
|
7 |
White (2) |
|
|
400,272 |
|
65.0 |
|
|
27 |
|
|
471,195 |
|
64.5 |
|
|
28 |
Yellow (3) |
|
|
95,768 |
|
15.6 |
|
|
6 |
|
|
117,792 |
|
16.1 |
|
|
8 |
Orange (4) |
|
|
58,087 |
|
9.4 |
|
|
6 |
|
|
40,091 |
|
5.5 |
|
|
5 |
Red (5) |
|
|
56 |
|
— |
|
|
1 |
|
|
908 |
|
0.1 |
|
|
1 |
|
|
$ |
615,656 |
|
100.0 |
% |
|
44 |
|
$ |
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
$56.0 million of additional non-binding signed term sheets with venture growth stage companies; -
The Company closed
$11.0 million of additional debt commitments; -
The Company funded
$6.3 million in new investments; -
On
August 2, 2024 , the Company’s board of directors appointedMatthew Galiani to serve as interim Chief Financial Officer of the Company, effective as of the close of business onAugust 9, 2024 .Mr. Galiani joined the Company in 2019 and has served as the Company’s Controller sinceDecember 2022 ; and -
Subsequent to the end of the quarter, the Company renewed its Revolving Credit Facility to, among other things, extend the revolving period to
November 30, 2025 and the scheduled maturity date toMay 30, 2027 , as well as set total commitments to$300 million .
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 |
$ |
713,770 |
|
|
$ |
802,145 |
|
Cash and cash equivalents |
|
50,434 |
|
|
|
153,328 |
|
Restricted cash |
|
241 |
|
|
|
18,254 |
|
Deferred credit facility costs |
|
2,507 |
|
|
|
2,714 |
|
Prepaid expenses and other assets |
|
4,316 |
|
|
|
2,384 |
|
Total assets |
$ |
771,268 |
|
|
$ |
978,825 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Revolving Credit Facility |
$ |
10,000 |
|
|
$ |
215,000 |
|
2025 Notes, net |
|
69,843 |
|
|
|
69,738 |
|
2026 Notes, net |
|
199,262 |
|
|
|
199,041 |
|
2027 Notes, net |
|
124,257 |
|
|
|
124,117 |
|
Other accrued expenses and liabilities |
|
14,929 |
|
|
|
24,623 |
|
Total liabilities |
$ |
418,291 |
|
|
$ |
632,519 |
|
|
|
|
|
||||
Net assets |
|
|
|
||||
Preferred stock, par value |
$ |
— |
|
|
$ |
— |
|
Common stock, par value |
|
399 |
|
|
|
376 |
|
Paid-in capital in excess of par value |
|
514,023 |
|
|
|
492,934 |
|
Total distributable earnings (loss) |
|
(161,445 |
) |
|
|
(147,004 |
) |
Total net assets |
$ |
352,977 |
|
|
$ |
346,306 |
|
Total liabilities and net assets |
$ |
771,268 |
|
|
$ |
978,825 |
|
|
|
|
|
||||
Shares of common stock outstanding (par value |
|
39,953 |
|
|
|
37,620 |
|
Net asset value per share |
$ |
8.83 |
|
|
$ |
9.21 |
|
|
|||||||||||||||
Consolidated Statements of Operations |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
||||||||
Investment income |
|
|
|
|
|
|
|
||||||||
Interest income from investments |
$ |
26,590 |
|
|
$ |
34,501 |
|
|
$ |
55,118 |
|
|
$ |
66,754 |
|
Other income |
|
517 |
|
|
|
650 |
|
|
|
1,263 |
|
|
|
2,025 |
|
Total investment and other income |
$ |
27,107 |
|
|
$ |
35,151 |
|
|
$ |
56,381 |
|
|
$ |
68,779 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Base management fee |
$ |
3,832 |
|
|
$ |
4,496 |
|
|
$ |
8,134 |
|
|
$ |
8,807 |
|
Income incentive fee |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense and amortization of fees |
|
8,702 |
|
|
|
9,944 |
|
|
|
15,713 |
|
|
|
19,189 |
|
Administration agreement expenses |
|
648 |
|
|
|
567 |
|
|
|
1,259 |
|
|
|
1,140 |
|
General and administrative expenses |
|
1,321 |
|
|
|
1,307 |
|
|
|
3,148 |
|
|
|
2,227 |
|
Total operating expenses |
$ |
14,503 |
|
|
$ |
16,314 |
|
|
$ |
28,254 |
|
|
$ |
31,363 |
|
|
|
|
|
|
|
|
|
||||||||
Net investment income |
$ |
12,604 |
|
|
$ |
18,837 |
|
|
$ |
28,127 |
|
|
$ |
37,416 |
|
|
|
|
|
|
|
|
|
||||||||
Net realized and unrealized gains/(losses) |
|
|
|
|
|
|
|
||||||||
Net realized gains (losses) on investments |
$ |
(18,846 |
) |
|
$ |
1,859 |
|
|
$ |
(27,653 |
) |
|
$ |
1,826 |
|
Net change in unrealized gains (losses) on investments |
|
14,859 |
|
|
|
(41,551 |
) |
|
|
16,122 |
|
|
|
(52,418 |
) |
Net realized and unrealized gains/(losses) |
$ |
(3,987 |
) |
|
$ |
(39,692 |
) |
|
$ |
(11,531 |
) |
|
$ |
(50,592 |
) |
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in net assets resulting from operations |
$ |
8,617 |
|
|
$ |
(20,855 |
) |
|
$ |
16,596 |
|
|
$ |
(13,176 |
) |
|
|
|
|
|
|
|
|
||||||||
Per share information (basic and diluted) |
|
|
|
|
|
|
|
||||||||
Net investment income per share |
$ |
0.33 |
|
|
$ |
0.53 |
|
|
$ |
0.74 |
|
|
$ |
1.06 |
|
Net increase (decrease) in net assets per share |
$ |
0.22 |
|
|
$ |
(0.59 |
) |
|
$ |
0.43 |
|
|
$ |
(0.37 |
) |
Weighted average shares of common stock outstanding |
|
38,729 |
|
|
|
35,398 |
|
|
|
38,189 |
|
|
|
35,373 |
|
Total distributions declared per share |
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.80 |
|
|
$ |
0.80 |
|
Weighted Average Portfolio Yield |
||||||||||||
on Debt Investments |
||||||||||||
Ratios
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Weighted average portfolio yield on debt investments(2) |
|
15.8 |
% |
|
14.7 |
% |
|
15.6 |
% |
|
14.7 |
% |
Coupon income |
|
11.6 |
% |
|
11.8 |
% |
|
11.9 |
% |
|
11.8 |
% |
Accretion of discount |
|
0.8 |
% |
|
0.7 |
% |
|
0.9 |
% |
|
0.9 |
% |
Accretion of end-of-term payments |
|
1.5 |
% |
|
1.6 |
% |
|
1.5 |
% |
|
1.7 |
% |
Impact of prepayments during the period |
|
1.9 |
% |
|
0.6 |
% |
|
1.3 |
% |
|
0.3 |
% |
_____________ | ||
(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/20240807516128/en/
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