BlackRock TCP Capital Corp. 8-K

What Happened
BlackRock TCP Capital Corp. (TCPC) filed an 8-K on January 23, 2026 providing preliminary, unaudited estimates for the quarter ended December 31, 2025. The company estimates net asset value (NAV) per share of approximately $7.05–$7.09, a decline of about 19.0% from $8.71 as of September 30, 2025. Management attributes the decline primarily to issuer‑specific developments and lists six portfolio companies (Edmentum, Razor, SellerX, HomeRenew/Renovo, Hylan, InMobi) that together accounted for 67% ($1.11 per share) of the NAV drop. Final audited results will be released before market open on February 27, 2026, with a conference call the same day.

Key Details

• NAV per share (preliminary, unaudited): $7.05–$7.09 as of 12/31/2025 (≈19% quarter decline from $8.71 on 9/30/2025).
• Net investment income per share (Q4 2025 prelim.): $0.24–$0.26, including ~10.9% payment‑in‑kind (PIK) income; advisor voluntarily waived one‑third of base management fee for the quarter (benefit ≈ $0.02/share).
• Credit and leverage metrics: debt investments on non‑accrual ≈ 4.0% of portfolio (fair value) and 9.6% at cost; net regulatory leverage ≈ 1.45x (up from 1.20x); total debt‑to‑equity ≈ 1.74x; available leverage ≈ $483.0M and cash ≈ $61.1M as of 12/31/2025.
• Portfolio mix and activity: average new investment size in 2025 ≈ $5.8M (vs $11.7M at 12/31/2024); all 2025 new investments were first‑lien loans, bringing first‑lien exposure to ≈87.5% (fair value).

Why It Matters
This filing signals a material, issuer‑driven NAV decline and rising non‑accruals and leverage levels, important factors for shareholders and income investors assessing capital preservation and dividend sustainability. The company still has significant available borrowing capacity ($483M) and cash ($61M) and expects to reduce leverage over time as it exits positions. Investors should note these are preliminary, unaudited estimates (Deloitte did not review) and final results and management commentary will be provided on February 27, 2026.