TICC Announces Results of Operations for the Quarter Ended

GREENWICH, CT--(Marketwired - May 7, 2013) - TICC Capital Corp. (NASDAQ: TICC) announced today its financial results for the quarter ended March 31, 2013, and a distribution of $0.29 per share for the second quarter of 2013.

HIGHLIGHTS

• For the quarter ended March 31, 2013, we recorded net investment income of approximately $10.7 million, or approximately $0.23 per share. Excluding the impact of a capital gains incentive fee accrual increase of approximately $215,000, our core net investment income⁽¹⁾ was approximately $10.9 million, or approximately $0.24 per share. In the first quarter, we also recorded net realized capital gains of approximately $6.6 million and net unrealized appreciation of approximately $3.6 million (which includes the reversal of net unrealized appreciation associated with the first quarter realization events). In total, we had a net increase in net assets resulting from operations of approximately $20.8 million or approximately $0.46 per share for the first quarter.
  • Total investment income for the first quarter of 2013 amounted to approximately $21.7 million which represents an increase of approximately $1.4 million over the fourth quarter of 2012.
    • For the quarter ending March 31, 2013, TICC recorded earned income from our investment portfolio as follows:
      • approximately $8.8 million from our CLO equity investments,
      • approximately $1.2 million from our CLO debt investments, and
      • approximately $11.0 million from our syndicated and bilateral investments.
  • As of the end of the first quarter of 2013 there were two loans on non-accrual status with an aggregate par amount of approximately $24.7 million and a fair value of approximately $8.1 million.
    • Of those amounts, $17.8 million and $6.1 million respectively (72% and 76%), resulted from the investment in a senior secured loan (executed in two purchases at a weighted average price of 32% of par) during the quarter ending March 31, 2013, which was expected to be non-accruing at the time of purchase. While we do not generally focus on distressed debt investments, we have been and remain open to those opportunities where the potential for highly attractive risk-adjusted returns exists.
  • Our weighted average credit rating on a fair value basis was 2.1 at the end of the first quarter of 2013 (compared to 2.1 at the end of the fourth quarter of 2012).
• Our operating expenses before the capital gains incentive fee for the quarter ended March 31, 2013 were approximately $10.9 million, up from the fourth quarter of 2012 by approximately $0.8 million due largely to increased professional fees, as well as higher investment advisory fees.
• The capital gains incentive fee was approximately $215,000 for the quarter ended March 31, 2013. The capital gains incentive fee, 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 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 become payable to our investment adviser in the event of a complete liquidation of our portfolio as of period end.  The amount of the capital gains incentive fee, if any, which will actually be payable is determined in accordance with the terms of the Investment Advisory Agreement (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. 
• Our Board of Directors has declared a distribution of $0.29 per share for the second quarter of 2013.
  • Payable Date: June 28, 2013
  • Record Date: June 14, 2013
• During the first quarter of 2013, we made approximately $216.5 million in additional investments. For the same period, we received proceeds of approximately $64.8 million from repayments, sales and amortization payments on our debt investments. 
• At March 31, 2013, the weighted average yield of our debt investments was approximately 9.2%, compared with 9.4% at December 31, 2012. 
• At March 31, 2013, net asset value per share was $10.02 compared with the net asset value per share at December 31, 2012 of $9.90. 
• On February 25, 2013, we completed the sale of $60 million of incremental senior debt in connection with the collateralized loan obligation transaction that originally closed on August 23, 2012. The issuance of additional notes was proportional across all existing classes of notes originally issued. 
• During the quarter ending March 31, 2013, we issued approximately 11.1 million shares of common stock and received net proceeds of approximately $110.4 million in two follow-on equity raises and in connection with an "at-the-market" share issuance plan.

⁽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 months ended March 31, 2013:

		Three Months Ended March 31, 2013
		Amount			Per Share Amounts
Net investment income		$	10,651,203		$	0.234
Capital gains incentive fee			215,354			0.005
Core net investment income		$	10,866,557		$	0.239

We will host a conference call to discuss our first quarter end results today, Tuesday, May 7, 2013 at 10:00 AM ET. Please call 888-317-6016 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 10028511.

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, 2012, and subsequent reports on Form 10-Q as they are filed.

TICC CAPITAL CORP.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
					March 31, 2013				December 31, 2012
ASSETS
	Non-affiliated/non-control investments (cost: $794,079,898 @ 3/31/13; $634,081,527 @ 12/31/12)				$	814,728,848			$	651,099,873
	Control investments (cost: $16,972,115 @ 3/31/13; $17,256,179 @ 12/31/12)					16,150,000				16,450,000
		Total investments at fair value				830,878,848				667,549,873
	Cash and cash equivalents					60,181,095				51,392,949
	Restricted cash					27,174,623				21,240,508
	Deferred debt issuance costs					8,414,550				8,154,925
	Interest and distributions receivable					7,111,444				5,986,122
	Securities sold not settled					19,023,321				1,516,875
	Other assets					411,392				181,788
			Total assets		$	953,195,273			$	756,023,040
LIABILITIES
	Accrued interest payable				$	5,399,571			$	4,234,376
	Investment advisory fee payable to affiliate					5,349,781				4,930,908
	Accrued capital gains incentive fee to affiliate					5,280,589				6,617,810
	Securities purchased not settled					19,692,003				-
	Accrued expenses					923,264				302,971
	Notes payable - TICC CLO LLC, net of discount					99,921,710				99,882,627
	Notes payable - TICC CLO 2012-1 LLC, net of discount					175,193,094				115,451,819
	Convertible senior notes payable					115,000,000				115,000,000
			Total liabilities			426,760,012				346,420,511
NET ASSETS
	Common stock, $0.01 par value, 100,000,000 shares authorized, and 52,541,808 and 41,371,286 issued and outstanding, respectively					525,418				413,713
	Capital in excess of par value					562,249,421				451,157,297
	Net unrealized appreciation on investments					19,826,835				16,212,167
	Accumulated net realized losses on investments					(47,330,329	)			(53,906,504	)
	Distributions in excess of investment income					(8,836,084	)			(4,274,144	)
			Total net assets			526,435,261				409,602,529
			Total liabilities and net assets		$	953,195,273			$	756,023,040
Net asset value per common share					$	10.02			$	9.90

TICC CAPITAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
					Three Months Ended March 31, 2013			Three Months Ended March 31, 2012
INVESTMENT INCOME
From non-affiliated/non-control investments:
	Interest income - debt investments				$	11,903,677		$	8,710,252
	Distributions from securitization vehicles and equity investments					8,753,204			5,549,647
	Commitment, amendment fee income and other income					714,516			107,355
		Total investment income from non-affiliated/non-control investments				21,371,397			14,367,254
From control investments:
	Interest income - debt investments					360,062			380,351
	Total investment income from control investments					360,062			380,351
		Total investment income				21,731,459			14,747,605
EXPENSES
	Compensation expense					311,065			270,334
	Investment advisory fees					4,097,471			2,143,357
	Professional fees					637,188			790,827
	Interest expense and other debt financing expenses					4,278,827			836,777
	General and administrative					288,041			292,797
		Total expenses before incentive fees				9,612,592			4,334,092
	Net investment income incentive fees					1,252,310			1,193,330
	Capital gains incentive fees					215,354			1,065,663
		Total incentive fees				1,467,664			2,258,993
		Total expenses				11,080,256			6,593,085
Net investment income						10,651,203			8,154,520
Net change in unrealized appreciation on investments						3,614,668			8,635,067
Net realized gains on investments						6,576,175			293,781
Net increase in net assets resulting from operations					$	20,842,046		$	17,083,368
Net increase in net assets resulting from net investment income per common share:
			Basic		$	0.23		$	0.24
			Diluted		$	0.22		$	0.24
Net increase in net assets resulting from operations per common share:
			Basic		$	0.46		$	0.51
			Diluted		$	0.41		$	0.51
Weighted average shares of common stock outstanding:
			Basic			45,565,784			33,410,298
			Diluted			55,598,936			33,410,298

TICC CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
			Three Months Ended March 31, 2013 (unaudited)				Three Months Ended March 31, 2012 (unaudited)
Per Share Data
Net asset value at beginning of period			$	9.90			$	9.30
Net investment income(1)				0.23				0.24
Net realized and unrealized capital gains				0.23				0.27
Total from net investment operations				0.46				0.51
Distributions per share from net investment income				(0.29	)			(0.27	)
Distributions based on weighted average share impact				(0.05	)			(0.04	)
Total distributions(2)				(0.34	)			(0.31	)
Effect of shares issued, net of offering expenses				0.00				-
Net asset value at end of period			$	10.02			$	9.50
Per share market value at beginning of period			$	10.12			$	8.65
Per share market value at end of period			$	9.95			$	9.74
Total return(3)				1.19	%			15.72	%
Shares outstanding at end of period				52,541,808				37,754,774
Ratios/Supplemental Data
Net assets at end of period (000's)				526,465				358,515
Average net assets (000's)				453,330				316,154
Ratio of expenses to average net assets:
	Expenses before incentive fees(4)			8.48	%			5.48	%
	Net investment income incentive fees(4)			1.11	%			1.51	%
	Capital gains incentive fees(4)			0.19	%			1.35	%
Total ratio of expenses to average net assets(4)				9.78	%			8.34	%
Ratio of expenses, excluding interest expense, to average net assets(4)				6.00	%			7.28	%
Ratio of net investment income to average net assets(4)				9.40	%			10.32	%

(1)		Represents per share net investment income for the period, based upon average shares outstanding.
(2)		Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a tax return of capital may occur for the year. To the extent the Company's taxable earnings fall below the total amount of the Company's distributions for that fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company's stockholders. The tax character of distributions will be determined at the end of the fiscal year.
(3)		Total return equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value, assuming dividend reinvestment prices obtained under the Company's dividend reinvestment plan. Total return is not annualized.
(4)		Annualized.

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.