TICC Announces Results of Operations for the Quarter Ended September 30, 2014 and Announces Quarterly Distribution of $0.29 per Share

GREENWICH, CT--(Marketwired - Nov 4, 2014) - TICC Capital Corp. (NASDAQ: TICC) announced today its financial results for the quarter ended September 30, 2014, and a distribution of $0.29 per share for the fourth quarter of 2014.

 HIGHLIGHTS

• For the quarter ended September 30, 2014, we recorded net investment income of approximately $17.5 million, or approximately $0.29 per share. Excluding the impact of a capital gains incentive fee accrual reversal of approximately $838,000, our core net investment income⁽¹⁾ was approximately $16.7 million, or approximately $0.28 per share. In the third quarter, we also recorded net realized capital losses of approximately $3.5 million and net unrealized depreciation of approximately $15.3 million. In total, we had a net decrease in net assets resulting from operations of approximately $1.3 million or approximately $0.02 per share for the third quarter.
  • Total investment income for the third quarter of 2014 amounted to approximately $30.2 million, which represents an increase of approximately $0.2 million from the second quarter of 2014.
    • For the quarter ended September 30, 2014, we recorded investment income from our portfolio as follows:
      • approximately $13.1 million from our debt investments,
      • approximately $15.2 million from our collateralized loan obligation ("CLO") equity investments, and
      • approximately $1.9 million from all other sources.
        
        
  • Our weighted average credit rating on a fair value basis was 2.1 at the end of the second quarter of 2014 (compared to 2.1 at the end of the second quarter of 2014).
    
    
• Our operating expenses before the capital gains incentive fee reversal for the quarter ended September 30, 2014 were approximately $13.5 million, up from the second quarter of 2014 by approximately $0.1 million.
  
  
• The capital gains incentive fee accrual calculation for the quarter ended September 30, 2014, resulted in an accrual reversal of approximately $838,000. 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 on September 30, 2014 to our investment adviser in the event of a complete liquidation of our portfolio as of period end and the termination of our Investment Advisory Agreement ("Advisory Agreement"). As of September 30, 2014, the calculation of a capital gains incentive fee, using the assumptions above, results in no liability.
  
  The amount of the capital gains incentive fee, if any, which will actually be payable is determined in accordance with the terms of our Advisory Agreement and is calculated as of the end of each calendar year (or upon termination of the Advisory Agreement). The terms of our Advisory 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. 
  
  
• Our Board of Directors has declared a distribution of $0.29 per share for the fourth quarter of 2014.
  • Payable Date: December 31, 2014
  • Record Date: December 17, 2014
    
    
• During the third quarter of 2014, we made approximately $97.6 million in additional investments. The additional investments consisted of approximately $38.0 million in corporate securities and $59.6 million in CLO equity.
  
  
  • For the third quarter of 2014, we received proceeds of approximately $122.0 million from repayments, sales and amortization payments on our debt investments. 
    
    
• As of September 30, 2014, the weighted average yield of our income producing investments on a cost basis was approximately 12.6%, compared with 12.2% as of June 30, 2014. At September 30, 2014, we had one investment on non-accrual status with a cost value of approximately $11.6 million.
  
  
• As of September 30, 2014, net asset value per share was $9.40 compared with the net asset value per share as of June 30, 2014 of $9.71. 
  
  
• As of October 27, 2014, TICC Funding, LLC ("TICC Funding"), a special purpose vehicle and wholly-owned subsidiary of TICC Capital Corp., entered into a revolving credit facility (the "Facility") with Citibank, N.A. In our related press release of October 28, 2014, we announced that we used part of the proceeds from the Facility to redeem all of the $101,250,000 secured notes issued by TICC CLO LLC. Subject to certain exceptions, pricing under the Facility is based on the London interbank offered rate ("LIBOR") for an interest period equal to three months plus a spread of 1.50% per annum. The secured notes previously issued under TICC CLO LLC were based on LIBOR for an interest period of three months plus a spread of 2.25% per annum.
  
  Pursuant to the terms of the credit agreement governing the Facility, TICC Funding has borrowed, on a revolving basis, the maximum aggregate principal amount of $150,000,000. All amounts borrowed under the Facility will mature, and all accrued and unpaid interest thereunder will be due and payable, on October 27, 2017.
  
  

⁽¹⁾ Supplemental Information Regarding Core Net Investment Income

On a supplemental basis, we provide information relating to core net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Core net investment income represents net investment income excluding our capital gains incentive fee. As the capital gains incentive fee, for generally accepted accounting purposes, is based on the hypothetical liquidation of the entire portfolio (and as any capital gains incentive fee may be non-recurring), we believe that core net investment income is a useful indicator of operations exclusive of any capital gains incentive fee. We note that such amount is excluded from the core net investment income amount presented below.

The following table provides a reconciliation of net investment income to core net investment income for the three and nine months ended September 30, 2014:

		Three Months Ended September 30, 2014								Nine Months Ended September 30, 2014
		Amount				Per Share Amounts				Amount				Per Share Amounts
Net investment income		$	17,520,528			$	0.291			$	52,695,296			$	0.904
Capital gains incentive fee			(837,963	)			(0.014	)			(3,872,853	)			(0.066	)
Core net investment income		$	16,682,565			$	0.277			$	48,822,443			$	0.838

We will host a conference call to discuss our third quarter results today, Tuesday, November 4, 2014 at 10:00 AM ET. Please call 888-339-0740 to participate. A replay of the conference call will be available for approximately 30 days. The replay number is 877-344-7529, and the replay passcode is 10054975.

A presentation containing further detail regarding our year-end and quarterly results of operations has been posted under the Investor Relations section of our website at www.ticc.com.

The following financial statements are unaudited and without footnotes. Readers who would like additional information should obtain our Form 10-K for the period ended December 31, 2013, and subsequent reports on Form 10-Q as they are filed.

TICC CAPITAL CORP.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
					September 30, 2014			December 31, 2013
ASSETS
	Non-affiliated/non-control investments (cost: $923,914,673 @ 9/30/14; $901,728,071 @ 12/31/13)				$	923,317,755		$	915,546,744
	Affiliated investments (cost: $4,217,122 @ 9/30/14; $0 @ 12/31/13)					4,001,877			-
	Control investments (cost: $16,900,000 @ 9/30/14; $16,900,000 @ 12/31/13)					15,310,000			16,050,000
		Total investments at fair value (cost: $945,031,795 @ 9/30/14; $918,628,071 @ 12/31/13)				942,629,632			931,596,744
	Cash and cash equivalents					27,605,274			14,933,074
	Restricted cash					51,038,473			32,428,248
	Deferred debt issuance costs					7,039,157			7,985,580
	Interest and distributions receivable					13,146,943			11,133,972
	Other assets					462,790			88,122
			Total assets		$	1,041,922,269		$	998,165,740
LIABILITIES
	Accrued interest payable				$	4,751,664		$	2,596,893
	Investment advisory fee payable to affiliate					7,067,976			7,144,480
	Accrued capital gains incentive fee to affiliate					-			3,872,853
	Securities purchased not settled					10,721,250			6,994,852
	Accrued expenses					1,004,936			637,896
	Notes payable - TICC CLO LLC, net of discount					100,160,015			100,041,226
	Notes payable - TICC CLO 2012-1 LLC, net of discount					235,964,462			235,635,114
	Convertible senior notes payable					115,000,000			115,000,000
			Total liabilities			474,670,303			471,923,314
COMMITMENTS AND CONTINGENCIES (Note 14)
NET ASSETS
	Common stock, $0.01 par value, 100,000,000 shares authorized, and 60,357,746 and 53,400,745 issued and outstanding, respectively					603,577			534,007
	Capital in excess of par value					629,525,871			561,336,766
	Net unrealized appreciation on investments					(2,402,163	)		12,968,673
	Accumulated net realized losses on investments					(57,629,704	)		(45,439,234	)
	Distributions in excess of investment income					(2,845,615	)		(3,157,786	)
			Total net assets			567,251,966			526,242,426
			Total liabilities and net assets		$	1,041,922,269		$	998,165,740
Net asset value per common share					$	9.40		$	9.85

TICC CAPITAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
					Three Months Ended September 30, 2014				Three Months Ended September 30, 2013				Nine Months Ended September 30, 2014				Nine Months Ended September 30, 2013
INVESTMENT INCOME
From non-affiliated/non-control investments:
	Interest income - debt investments				$	12,727,990			$	14,039,082			$	38,350,310			$	38,334,197
	Distributions from securitization vehicles and equity investments					15,170,869				12,256,961				45,047,290				31,676,007
	Commitment, amendment fee income and other income					1,877,067				787,777				4,267,879				3,505,135
		Total investment income from non-affiliated/non-control investments				29,775,926				27,083,820				87,665,479				73,515,339
From affiliated investments:
	Interest income - debt investments					50,436				-				65,139				-
	Distributions from equity investments					-				-				-				-
	Total investment income from affiliated investments					50,436				-				65,139				-
From control investments:
	Interest income - debt investments					349,361				364,557				1,036,691				1,088,641
	Distributions from equity investments					-				-				-				-
	Total investment income from control investments					349,361				364,557				1,036,691				1,088,641
		Total investment income				30,175,723				27,448,377				88,767,309				74,603,980
EXPENSES
	Compensation expense					472,903				310,415				1,399,476				924,818
	Investment advisory fees					5,366,277				4,932,640				15,764,248				13,912,382
	Professional fees					603,940				386,793				1,601,883				1,474,966
	Interest expense and other debt financing expenses					4,963,796				4,977,313				14,805,182				13,980,611
	General and administrative					384,543				540,512				1,567,799				1,453,455
		Total expenses before incentive fees				11,791,459				11,147,673				35,138,588				31,746,232
	Net investment income incentive fees					1,701,699				1,791,981				4,806,278				4,426,322
	Capital gains incentive fees					(837,963	)			2,270,014				(3,872,853	)			(414,404	)
		Total incentive fees				863,736				4,061,995				933,425				4,011,918
		Total expenses				12,655,195				15,209,668				36,072,013				35,758,150
Net investment income						17,520,528				12,238,709				52,695,296				38,845,830
Net change in unrealized appreciation on investments
	Non-Affiliate/non-control investments					(15,123,443	)			12,704,136				(18,359,672	)			(41,034	)
	Affiliated investments					(198,545	)			-				3,728,836				-
	Control investments					-				(12,093	)			(740,000	)			(43,821	)
		Total net change in unrealized appreciation on investments				(15,321,988	)			12,692,043				(15,370,836	)			(84,855	)
Net realized (losses) gains on investments
	Non-Affiliated/non-control investments					(3,460,465	)			(1,341,975	)			(6,925,632	)			7,126,844
	Affiliated investments					-				-				(5,264,838	)			-
	Control investments					-				-				-				-
		Total net realized (losses) gains on investments				(3,460,465	)			(1,341,975	)			(12,190,470	)			7,126,844
Net (decrease) increase in net assets resulting from operations					$	(1,261,925	)		$	23,588,777			$	25,133,990			$	45,887,819
Net increase in net assets resulting from net investment income per common share:
			Basic		$	0.29			$	0.23			$	0.90			$	0.77
			Diluted		$	0.28			$	0.22			$	0.85			$	0.74
Net (decrease) increase in net assets resulting from operations per common share:
			Basic		$	(0.02	)		$	0.45			$	0.43			$	0.91
			Diluted			(0.02	)		$	0.41				0.43			$	0.85
Weighted average shares of common stock outstanding:
			Basic			60,268,078				52,751,722				58,307,825				50,314,364
			Diluted			70,301,230				62,784,874				68,340,977				60,347,516
Dividends Declared Per Share					$	0.29			$	0.29			$	0.87			$	0.87

About TICC Capital Corp.

TICC Capital Corp. is a publicly-traded business development company principally engaged in providing capital to established businesses, investing in syndicated bank loans and purchasing debt and equity tranches of collateralized loan obligations. Companies interested in learning more about financing opportunities should contact Debdeep Maji at (203) 983-5285.

Forward-Looking Statements

This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events.