BlackRock Capital Investment Corporation Reports Financial Results for the Quarter Ended March 31, 2019, Declares Quarterly Distribution of $0.18 per Share

• GAAP Net Investment Income (NII) of $0.17 per share providing first
  quarter distribution coverage of approximately 92%.
• Net Asset Value (NAV) per share increased 1.1% or $0.08 per share to
  $7.15 per share on a quarter-over-quarter basis.
• Net leverage of 0.37x was slightly up reflecting a net increase in
  investments. Total liquidity for portfolio company investments,
  including cash, was approximately $268.8 million, subject to leverage
  and borrowing base restrictions.
• Under our existing share repurchase program, we repurchased 85,543
  shares of common stock for $0.5 million at an average price of $5.49,
  including brokerage commissions, via open market purchases in the
  first quarter.

NEW YORK–(BUSINESS WIRE)–BlackRock Capital Investment Corporation (NASDAQ:BKCC) (“BCIC” or the
“Company,” “we,” “us” or “our”) announced today that its Board of
Directors declared a quarterly distribution of $0.18 per share, payable
on July 9, 2019 to stockholders of record at the close of business on
June 18, 2019.

“Our deployment pipeline remains robust heading into the second quarter,
reflecting the increased capabilities of our platform following the
integration of Tennenbaum Capital Partners LLC, or TCP, with the
Company’s adviser, BlackRock Capital Investment Advisors, LLC. Two of
the new investments made by the Company during the quarter were driven
by BlackRock-managed funds being able to provide a holistic financing
solution to our borrowers. For the second quarter, we anticipate
investments in new companies to trend higher based on our current
pipeline and completed investments thus far in the second quarter.
Additionally, we believe that our ability to co-invest with TCP
affiliated funds allows us to mitigate portfolio risk by increasing
issuer and sector diversity,” commented James E. Keenan, Chairman and
Interim CEO of the Company.

“Our net unrealized and realized gains of $6.6 million were a result of
net portfolio valuation increases, primarily driven by appreciation in
our equity investment in US Well Services, Inc. (“USWS”). We anticipate
that the valuation of our USWS investment will continue to shift in line
with the quarter-end closing prices of the USWS stock. Substantially all
of our investment in USWS is subject to lock-ups, half of which expire
in May 2019 and the other half in November 2019.

“Under BlackRock’s management of BCIC, from March 6, 2015 to March 31,
2019, we have deployed capital of approximately $1 billion, of which
$387 million has been exited with a realized IRR of 14.1%. With
liquidity at approximately $269 million and no debt maturities until
2022, we have significant operating flexibility and deployment capacity.”

Financial Highlights

Business Updates

• Under our existing share repurchase program, during the first quarter
  of 2019, 85,543 shares were repurchased for $0.5 million at an average
  price of $5.49 per share, including brokerage commissions. The
  cumulative repurchases since BlackRock entered into the investment
  management agreement with the Company in early 2015 totaled
  approximately 7.3 million shares for $50.4 million, representing 80.4%
  of total share repurchase activity, on a dollar basis, since
  inception. Since the inception of our share repurchase program through
  March 31, 2019, we have purchased 9.0 million shares at an average
  price of $6.94 per share, including brokerage commissions, for a total
  of $62.7 million. As of March 31, 2019, 3,320,309 shares remained
  authorized for repurchase.
• The non-core legacy asset book comprised 33% of our total portfolio by
  fair market value as of March 31, 2019. This is further broken down
  into income-producing investments, non-earning equities and
  non-accrual investments at 25%, 7% and 1% of the total portfolio,
  respectively, by fair market value. Our investments in Vertellus
  Holdings, AGY Holding, Sur La Table, US Well Services and related
  issuers comprise 73% of the non-core book by fair market value.

Portfolio and Investment Activity*

*Balance sheet amounts above are as of period end

• We deployed $58.0 million during the quarter while exits of
  investments totaled $55.7 million, resulting in a $2.3 million net
  increase in our portfolio due to investment activity.
  • Our deployments were primarily concentrated in three new portfolio
    company investments and one investment into an existing portfolio
    company.
    • $7.5 million funded L + 6.75% first lien term loan (with an
      additional $2.5 million unfunded at close) to
      FinancialForce.com, a provider of cloud ERP and Professional
      Service Automation (“PSA”) software;
    • $4.7 million funded L + 7.25% first lien term loan (with a
      $0.4 million unfunded revolver) to CareATC, Inc., a
      tech-enabled provider of employer-sponsored health and
      wellness clinics;
    • $21.0 million funded L + 8.50% second lien term loan to
      Paragon Films, a leading manufacturer or stretch films
      servicing the storage and distribution pallet unitization
      market; and
    • $23.9 million of incremental L + 11.0% unsecured debt to
      Gordon Brothers Finance Company (“GBFC”) to fund portfolio
      growth.
  • Our repayments were primarily concentrated in one portfolio
    company exit and two partial repayments:
    • $25.0 million repayment of Paragon Films second lien term
      loan. The exit of this investment occurred pursuant to a sale
      of the company to a new sponsor and accompanying
      recapitalization. The aforementioned $21.0 million investment
      in Paragon Films was an investment in the post-sale capital
      structure;
    • $26.1 million partial repayment of unsecured debt to GBFC;
    • $3.0 million partial repayment of NorthStar Financial second
      lien term loan; and
  • A $3.0 million revolver commitment to Bankruptcy Management
    Solutions was terminated resulting in a complete exit from this
    investment. The revolver was unfunded.
• Our $96.3 million equity investment in BCIC Senior Loan Partners
  (“SLP”) is generating a yield of greater than 12%. During the first
  quarter, SLP made investments into one new portfolio company and four
  existing portfolio companies totaling $11.9 million of new capital
  deployments during the quarter. Total committed capital and
  outstanding investments, at par, amounted to $369.7 million and $354.5
  million, respectively, to 28 borrowers. The new investment, at par,
  was a $3.1 million first lien term loan to Research Now Group, LLC, a
  global leader in data collection through online, mobile, and offline
  surveys. Incremental investments to existing portfolio companies
  primarily included an additional $4.1 million investment in Protective
  Industrial Products, Inc., and an additional $3.6 million investment
  in MSHC, Inc. (Service Logic Acquisition).
• As of March 31, 2019, there were three non-accrual investment
  positions, representing approximately 1.6% and 7.0% of total debt and
  preferred stock investments, at fair value and cost, respectively, as
  compared to non-accrual investment positions of approximately 1.6% and
  7.1% of total debt and preferred stock investments at fair value and
  cost, respectively, at December 31, 2018. Our average internal
  investment rating at fair market value at March 31, 2019 was 1.49 as
  compared to 1.44 as of the prior quarter end.
• During the quarter ended March 31, 2019, net realized and unrealized
  gains were $6.6 million, primarily due to appreciation in portfolio
  valuations during the quarter.

First Quarter Financial Updates

• GAAP net investment income (“NII”) was $11.4 million, or $0.17 per
  share, for the three months ended March 31, 2019. Relative to
  distributions declared of $0.18 per share, our NII distribution
  coverage was 92% for the quarter.
• As previously disclosed, our base management fee rate was reduced from
  an annual rate of 2.00% of total assets to 1.75%, effective March 7,
  2017, and incentive management fees based on income were waived by our
  investment adviser until June 30, 2019. For the quarter ended March
  31, 2019, we incurred base management fees of $2.9 million. Incentive
  management fees based on income of $2.3 million were earned and waived
  by our adviser during the current quarter. Additionally, $18.8 million
  of incentive management fees have been waived on a cumulative basis.
  For incentive management fees based on gains, there was no accrual as
  of March 31, 2019.
• Tax characteristics of all 2018 distributions were reported to
  stockholders on Form 1099 after the end of the calendar year. Our 2018
  distributions of $0.72 per share were comprised of $0.70 per share
  from various sources of income and $0.02 per share of return of
  capital. Our return of capital distributions totaled $1.98 per share
  from inception to December 31, 2018. At our discretion, we may carry
  forward taxable income in excess of calendar year distributions and
  pay a 4% excise tax on this income. We will accrue excise tax on
  estimated undistributed taxable income as required. There was no
  undistributed taxable income carried forward from 2018.

Liquidity and Capital Resources

• At March 31, 2019, we had $27.1 million in cash and cash equivalents
  and $241.7 million of availability under our credit facility, subject
  to leverage restrictions, resulting in approximately $268.8 million of
  availability for portfolio company investments.
• Net leverage, adjusted for available cash, receivables for investments
  sold, payables for investments purchased and unamortized debt issuance
  costs, stood at 0.37x at quarter-end, and our 328% asset coverage
  ratio provided the Company with available debt capacity under its
  asset coverage requirements of $274.7 million. Further, as of
  quarter-end, approximately 77% of our portfolio was invested in
  qualifying assets, exceeding the 70% regulatory requirement of a
  business development company.

Conference Call

BlackRock Capital Investment Corporation will host a
webcast/teleconference at 10:00 a.m. (Eastern Time) on Thursday, May 2,
2019, to discuss its first quarter 2019 financial results. All
interested parties are welcome to participate. You can access the
teleconference by dialing, from the United States, (800) 458-4148, or
from outside the United States, +1-720-543-0206, 10 minutes before 10:00
a.m. and referencing the BlackRock Capital Investment Corporation
Conference Call (ID Number 3027722). A live, listen-only webcast will
also be available via the Investor Relations section of www.blackrockbkcc.com.
Both the teleconference and webcast will be available for replay by 1:00
p.m. on Thursday, May 2, 2019 and ending at 1:00 p.m. on Thursday, May
16, 2019. To access the replay of the teleconference, callers from the
United States should dial (888) 203-1112 and callers from outside the
United States should dial (719) 457-0820 and enter the Conference ID
Number 3027722.

Prior to the webcast/teleconference, an investor presentation that
complements the earnings conference call will be posted to BlackRock
Capital Investment Corporation’s website within the Presentations
section of the Investors page (http://www.blackrockbkcc.com/news-and-events/disclaimer).

About BlackRock Capital Investment Corporation

BlackRock Capital Investment Corporation is a business development
company that provides debt and equity capital to middle-market companies.

The Company’s investment objective is to generate both current income
and capital appreciation through debt and equity investments. The
Company invests primarily in middle-market companies in the form of
senior and junior secured and unsecured debt securities and loans, each
of which may include an equity component, and by making direct
preferred, common and other equity investments in such companies.

Supplemental Information

The Company reports its financial results on a GAAP basis; however,
management believes that evaluating the Company’s ongoing operating
results may be enhanced if investors have additional non-GAAP basis
financial measures. Management reviews non-GAAP financial measures to
assess ongoing operations and, for the reasons described below,
considers them to be effective indicators, for both management and
investors, of the Company’s financial performance over time. The
Company’s management does not advocate that investors consider such
non-GAAP financial measures in isolation from, or as a substitute for,
financial information prepared in accordance with GAAP.

Until March 6, 2017, the Company recorded its liability for incentive
management fees based on income as it became legally obligated to pay
them, based on a hypothetical liquidation at the end of each reporting
period. The Company’s obligation to pay incentive management fees with
respect to any fiscal quarter until March 6, 2017 was based on a formula
that reflects the Company’s results over a trailing four-fiscal quarter
period ending with the pro-rated period until March 6, 2017. The Company
is legally obligated to pay the amount resulting from the formula less
any cash payments of incentive management fees during the prior three
quarters. The formula’s requirement to reduce the incentive management
fee by amounts paid with respect to such fees in the prior three
quarters caused the Company’s incentive management fee expense to become
concentrated in the fourth quarter of each year. Management believes
that reflecting incentive management fees throughout the year, as the
related investment income is earned, is an effective measure of the
Company’s profitability and financial performance that facilitates
comparison of current results with historical results and with those of
the Company’s peers. The Company’s “as adjusted” results reflect
incentive management fees based on the formula the Company utilizes for
each trailing four-fiscal quarter period until March 6, 2017, with the
formula applied to each quarter’s incremental earnings and without any
reduction for incentive management fees paid during the prior three
quarters. The resulting amount represents an upper limit of each
quarter’s incremental incentive management fees that the Company may
become legally obligated to pay at the end of the year. Prior year
amounts are estimated in the same manner. These estimates represent
upper limits because, in any calendar year, subsequent quarters’
investment underperformance could reduce the incentive management fees
payable by the Company with respect to prior quarters’ operating
results. After March 6, 2017, incentive management fees based on income
have been calculated for each calendar quarter and are paid on a
quarterly basis if certain thresholds are met. The Company records its
liability for incentive management fees based on capital gains by
performing a hypothetical liquidation at the end of each reporting
period. The accrual of this hypothetical capital gains incentive
management fee is required by GAAP, but it should be noted that a fee so
calculated and accrued is not due and payable until the end of the
measurement period, or every June 30. The incremental incentive
management fees disclosed for a given period are not necessarily
indicative of actual full year results. Changes in the economic
environment, financial markets and other parameters used in determining
such estimates could cause actual results to differ and such differences
could be material. In addition, on March 7, 2017, BlackRock Advisors, in
consultation with the Company’s Board of Directors, agreed to waive
incentive fees based on income after March 6, 2017 to December 31, 2018,
which was extended to June 30, 2019. BCIA has agreed to honor such
waiver. For a more detailed description of the Company’s incentive
management fee, please refer to the Company’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2018, on file with the Securities
and Exchange Commission (“SEC”).

Computations for the periods below are derived from the Company’s
financial statements as follows:

Contacts

Investor Contact:
Nik Singhal
212.810.5427

Press
Contact:
Brian Beades
212.810.5596

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