 NEW YORK, Aug. 04, 2020 GLOBE NEWSWIRE -- TCG BDC, Inc. together with its consolidated subsidiaries, we, us, our, TCG BDC or the Company NASDAQ: CGBD today announced its financial results for its second quarter ended June 30, 2020. Linda Pace, TCG BDCs Chief Executive Officer said, Our portfolio is performing well and driving solid income generation for shareholders despite substantial economic uncertainty. Actions we have undertaken over the past quarter have fortified our balance sheet and provided significant capital flexibility to support our borrowers. TCG BDC is well positioned to deliver attractive returns for all of our stakeholders.Selected Financial Highlightsdollar amounts in thousands, except per share dataJune 30, 2020 March 31, 2020 Total investments, at fair value1,907,555 2,024,277 Total assets1,958,634 2,126,826 Total debt1,035,799 1,262,960 Total net assets883,304 798,534 Net assets per common share14.80 14.18 For the three month periods ended June 30, 2020 March 31, 2020 Total investment income45,275 50,545 Net investment income loss21,692 23,972 Net realized gain loss and net change in unrealized appreciation depreciation on investments and non-investment assets and liabilities34,466 145,072 Net increase decrease in net assets resulting from operations56,158 121,100 Per weighted-average common shareBasic: Net investment income loss, net of preferred dividend0.38 0.42 Net realized gain loss and net change in unrealized appreciation depreciation on investments and non-investment assets and liabilities0.61 2.57 Net increase decrease in net assets resulting from operations attributable to common stockholders0.99 2.15 Weighted-average shares of common stock outstandingBasic56,308,616 57,112,193 Regular dividends declared per common share0.37 0.37 Second Quarter 2020 Highlights dollar amounts in thousands, except per share data Net investment income for the three month period ended June 30, 2020 was 21,692, or 0.39 per share, 21,138, or 0.38 per common share, net of the preferred dividend as compared to 23,972, or 0.42 per share, for the three month period ended March 31, 2020; Net realized gain loss and net change in unrealized appreciation depreciation on investments and non-investment assets and liabilities for the three month period ended June 30, 2020 was 34,466, or 0.61 per share, as compared to 145,072, or 2.57 per share, for the three month period ended March 31, 2020; Net increase decrease in net assets resulting from operations for the three month period ended June 30, 2020 was 56,158, or 0.99 per common share, as compared to 121,100, or 2.12 per share, for the three month period ended March 31, 2020; and On August 3, 2020, the Board of Directors declared a regular quarterly common dividend of 0.32 plus a special dividend of 0.05, which are payable on October 16, 2020 to common stockholders of record on September 30, 2020.Portfolio and Investment Activity dollar amounts in thousands, except per share data, unless otherwise notedAs of June 30, 2020, the fair value of our investments was approximately 1,907,555, comprised of 142 investments in 111 portfolio companiesinvestment fund across 28 industries with 63 sponsors. This compares to the Companys portfolio as of March 31, 2020, as of which date the fair value of our investments was approximately 2,024,277, comprised of 138 investments in 110 portfolio companiesinvestment fund across 28 industries with 63 sponsors.As of June 30, 2020 and March 31, 2020, investments consisted of the following: June 30, 2020 March 31, 2020 Type of Fair ValueFair Value of Fair Value Fair Value of Fair Value First Lien Debt excluding First LienLast Out1,316,786 69.03 1,478,357 73.02 First LienLast Out78,127 4.10 56,408 2.79 Second Lien Debt278,623 14.61 275,055 13.59 Equity Investments31,756 1.66 29,323 1.45 Investment Fund202,263 10.60 185,134 9.15 Total1,907,555 100.00 2,024,277 100.00 The following table shows our investment activity for the three month period ended June 30, 2020: Funded SoldRepaid Principal amount of investments:Amount of Total Amount of Total First Lien Debt excluding First LienLast Out41,273 65.43 227,302 86.03 First LienLast Out20,921 33.17 33,898 12.83 Second Lien Debt368 0.58 3,000 1.14 Equity Investments518 0.82 Investment Fund Total63,080 100.00 264,200 100.00 Overall, total investments at fair value decreased by 5.8, or 116,722, during the three month period ended June 30, 2020 after factoring in repayments, sales, net fundings on revolvers and delayed draws and net change in unrealized appreciation depreciation.As of June 30, 2020, the weighted average yields for our first and second lien debt investments on an amortized cost basis were 6.94 and 9.29, respectively, with a total weighted average yield of 7.34. Weighted average yields include the effect of accretion of discounts and amortization of premiums and are based on interest rates as of June 30, 2020. As of June 30, 2020, on a fair value basis, approximately 0.9 of our debt investments bear interest at a fixed rate and approximately 99.1 of our debt investments bear interest at a floating rate, which primarily are subject to interest rate floors.Total investments at fair value held by Middle Market Credit Fund, LLC Credit Fund, which is not consolidated with the Company, increased by 4.9, or 58,817, during the three month period ended June 30, 2020 after factoring in repayments, sales, net fundings on revolvers and delayed draws and net change in unrealized appreciation depreciation. As of June 30, 2020, Credit Fund had total investments at fair value of 1,258,000, which comprised 97.8 of first lien senior secured loans and 1.7 of second lien senior secured loans at fair value. As of June 30, 2020, approximately 1.7 of Credit Funds debt investments bear interest at a fixed rate and approximately 98.3 of investments in the portfolio were floating rate debt investments, which primarily are subject to interest rate floors.As part of the monitoring process, our Investment Adviser has developed risk policies pursuant to which it regularly assesses the risk profile of each of our debt investments and rates each of them based on categories, which we refer to as Internal Risk Ratings. During the second quarter of 2020, our Investment Advisor reevaluated and revised its Internal Risk Ratings and policies across the Carlyle Direct Lending platform to more appropriately assess portfolio risk across all market conditions, including the current COVID-19 environment. The revised methodology incorporates greater focus on expectations for future company performance and industry outlook, and creates greater consistency in risk rating assignment across all investments by removing from the rating methodology the direct tie of historical financial results to the base case projections derived at the time of our initial investment. Under the revised methodology, an Internal Risk Rating of 1 5, which are defined below, is assigned to each debt investment in our portfolio, compared to Internal Risk Ratings of 1 6 under the legacy methodology. Key drivers of internal risk rating used in the revised methodology are substantially the same as the legacy methodology, including financial metrics, financial covenants, liquidity and enterprise value coverage.Internal Risk Ratings DefinitionsRating Definition 1 Borrower is operating above expectations, and the trends and risk factors are generally favorable. 2 Borrower is operating generally as expected or at an acceptable level of performance. The level of risk to our initial cost bases is similar to the risk to our initial cost basis at the time of origination. This is the initial risk rating assigned to all new borrowers. 3 Borrower is operating below expectations and level of risk to our cost basis has increased since the time of origination. The borrower may be out of compliance with debt covenants. Payments are generally current although there may be higher risk of payment default. 4 Borrower is operating materially below expectations and the loans risk has increased materially since origination. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due, but generally not by more than 120 days. It is anticipated that we may not recoup our initial cost basis and may realize a loss of our initial cost basis upon exit. 5 Borrower is operating substantially below expectations and the loans risk has increased substantially since origination. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. It is anticipated that we will not recoup our initial cost basis and may realize a substantial loss of our initial cost basis upon exit. Our Investment Adviser monitors and, when appropriate, changes the investment ratings assigned to each debt investment in our portfolio. Our Investment Adviser reviews our investment ratings in connection with our quarterly valuation process. The following table summarizes the Internal Risk Ratings of our debt portfolio as of June 30, 2020: June 30, 2020 Fair Value of Fair Value dollar amounts in millions Internal Risk Rating 137.3 2.23 Internal Risk Rating 21,145.7 68.45 Internal Risk Rating 3412.4 24.65 Internal Risk Rating 436.8 2.20 Internal Risk Rating 541.3 2.47 Total1,673.5 100.00 As of June 30, 2020, the weighted average Internal Risk Rating of our debt investment portfolio was 2.3. 