(State or other jurisdiction of

incorporation or organization)

(Commission

File Number)

(IRS Employer

Identification Number)

Exhibit

Number

Description

Exhibit

Number

Description

Date: November 8, 2017

By:

/s/ Michael Pungello

Name:

Title:

Investor Contact:

Nik Singhal

212.810.5427

GAAP net investment income of $0.17 per share providing distribution coverage of 92%

Net asset value (NAV) per share decreased 4.4% or $0.37 per share from $8.33 to $7.96 per share on a quarter-over-quarter basis

Net leverage of 0.42x and liquidity of approximately $390 million, subject to leverage and borrowing base restrictions

Actively managed liabilities in the third quarter having purchased approximately $60 million in aggregate principal amount of its $115 million convertible notes due 2018 pursuant to a cash tender.

($’s in millions, except per share data)

Net Investment Income/(loss)

Net realized and unrealized gains/(losses)

Deferred taxes

Realized losses on extinguishment of debt

Basic earnings/(loss)

Distributions declared

Net Investment Income/(loss), as adjusted¹

Basic earnings/(loss), as adjusted¹

($’s in millions, except per share data)

Total assets

Investment portfolio, at fair market value

Debt outstanding

Total net assets

Net asset value per share

Net leverage ratio²

On September 26, 2017, the Company purchased approximately $60.0 million in aggregate principal amount of its existing $115.0 million 5.50% unsecured convertible senior notes due 2018 (the “Convertible Notes”) pursuant to a cash tender offer at a purchase price equal to $1,015 per $1,000 principal amount of notes purchased, plus accrued and unpaid interest, using borrowings under the Credit Facility and cash on hand. All Convertible Notes purchased in the tender offer were retired and cancelled, and are no longer outstanding under the indenture. The aggregate purchase price of the Convertible Notes was approximately $60.9 million. The net carrying amount of the Convertible Notes at the time of purchase was approximately $59.8 million, net of unamortized debt issuance costs and unamortized discount. The difference between the reacquisition price and the net carrying amount of the Convertible Notes was recorded in the accompanying Consolidated Statements of Operations as a $1.3 million loss on extinguishment of debt.

Since the inception of our share repurchase program through September 30, 2017, we have purchased 4.6 million shares at an average price of $7.98 per share, including brokerage commissions, for a total of $36.3 million. There were no share repurchases during the first nine months of 2017. The cumulative repurchases since BlackRock Advisors, LLC entered into the investment management agreement with the Company totaled approximately 2.8 million shares for $24.0 million, representing 66% of total share repurchase activity, on a dollar basis, since inception. In May 2017, our Board of Directors approved an increase to the remaining amount of shares authorized to be repurchased to a total of 2.5 million shares effective July 1, 2017, and an extension to the plan until the earlier of June 30, 2018 or such time that all of the authorized shares have been repurchased. Accordingly, as of September 30, 2017, the Company had 2.5 million shares authorized for repurchase.

Non-GAAP basis financial measure. See Supplemental Information on page 8.

Calculated less available cash and receivable for investments sold, plus payable for investments purchased and unamortized debt issuance costs.

Commitments

Investment exits

Number of portfolio company investments at the end of period

Weighted average yield of debt and income producing equity securities, at fair market value

% of Portfolio invested in Secured debt, at fair market value

% of Portfolio invested in Unsecured debt, at fair market value

% of Portfolio invested in Equity, at fair market value

Average investment by portfolio company, at amortized cost (excluding investments below $5.0 million)

balance sheet amounts above are as of period end

We invested $34.9 million during the quarter while sales, repayments and other exits of investments totaled $75.7 million, resulting in a $40.8 million net decrease in our portfolio due to investment activity. Approximately 90% of our deployments during the quarter were represented by three portfolio companies: (i) a $15.0 million L+7.00% second lien term loan to Midwest Physician Administrative Services, LLC, the largest independent, for-profit, multi-specialty physician group in the U.S., (ii) $9.3 million of incremental equity to Senior Loan Partners and (iii) $7.1 million of incremental L+11.00% unsecured debt to Gordon Brothers Finance Company. 98% of proceeds from exits during the quarter were also represented by three transactions: (i) a par repayment of our $32.5 million Recorded Books second lien term loan, (ii) a par repayment of our $32.2 million Water Pik, Inc. second lien term loan and (iii) a par repayment totaling $9.5 million across our first and second lien term loans to SOURCEHOV, LLC, with the second lien being repaid at premium due to contractual call protection.

Our $66 million equity investment in Senior Loan Partners, as of September 30, 2017, is now generating a yield of approximately 11%. Senior Loan Partners made investments into four new portfolio companies and two existing portfolio companies totaling $47.6 million of new capital deployments during the quarter, bringing committed and outstanding amounts to $209.7 million and $196.9 million, respectively, and a total of 19 borrowers. The four new investments at par are (i) a $12.5 million first lien term loan to Service Logic Acquisition, Inc., a leading independent provider of aftermarket repair and maintenance services for commercial heating, ventilation, and air conditioning (“HVAC”) equipment, (ii) a $10.0 million first lien term loan to Golden West Packaging Group LLC, a vertically integrated provider of customized paper packaging solutions including corrugated boxes, point-of purchase displays, folding cartons, and other retail ready packaging products primarily serving the food, produce, beverage, and wine industries, (iii) a $5.8 million first lien term loan and a $9.2 million delayed draw term loan to Accruent, LLC, a real estate and facilities management software platform serving customers across end markets including retail, telecom, corporate, healthcare, and education, among others, and (iv) a $12.0 million first lien term loan to Give and Go Prepared Foods Corp., a leading manufacturer of Thaw & Sell sweet baked goods that caters to retailers and foodservice operators across Canada and the U.S.

As of September 30, 2017, two investments were in non-accrual status, which were 2.7% of our total debt investments at fair market value, and 8.9% at amortized cost, compared with zero last quarter. Our average internal investment rating at fair market value at September 30, 2017 was 1.30 as compared to 1.34 as of June 30, 2017.

Net unrealized depreciation on investments (before tax) increased $19.3 million during the current quarter, bringing total balance sheet unrealized depreciation on investments (before tax) to $57.1 million. During the quarter, gross unrealized appreciation on investments of $24.6 million was offset by $42.8 million of gross unrealized depreciation on investments, for a net $18.2 million of depreciation due to portfolio valuations.

GAAP net investment income (“NII”) was $12.1 million, or $0.17 per share, for the three months ended September 30, 2017. Relative to distributions declared of $0.18 per share, our NII distribution coverage was 92% for the quarter.

Fee income earned on prepayments, commitments and administration during the current quarter totaled $0.2 million, as compared to $0.1 million earned during the preceding quarter, and $0.5 million earned during the prior year quarter. Excluding (i) fee income and

(ii) a $0.6 million insurance reimbursement in the preceding quarter related to a previously disclosed legal settlement, total investment income decreased approximately 8% compared to the prior quarter, and decreased approximately 12% as compared to this quarter one year ago.

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. For the three months ended September 30, 2017, $1.5 million of incentive management fees based on income were earned by our investment adviser, however, as previously disclosed, any such fees earned until December 31, 2018 have been waived by our investment adviser. The cumulative amount of such incentive management fees waived since March 7, 2017 is $5.1 million. During the quarter, there was no accrual for incentive management fees based on gains. The total cumulative accrued balance at September 30, 2017 was zero.

As compared to the same 2016 period, our nine-month 2017 weighted average cost of debt increased 131 bps to 5.66%. The increase was primarily driven by a number of factors including (i) make-whole interest incurred in connection with the early repayment of our $17.0 million 6.60% Notes and $15.0 million Term Loan during the second quarter of 2017, (ii) lower average debt balances outstanding on our revolving credit facility and higher average debt balances outstanding on our convertible notes due 2022 as a percentage of total debt and (iii) higher Libor rates for the current period.

The Company holds certain portfolio investments through taxable subsidiaries as pass through entities. Income earned and gains realized on the investment held by the taxable subsidiary are taxable to such subsidiary. A tax provision for income, if any, is shown as income tax in the Consolidated Statements of Operations for the Company. A tax provision for realized and unrealized gains is included as a reduction of realized and/or unrealized gain (loss) in the Consolidated Statement of Operations for the Company. For the three and nine months ended September 30, 2017, unrealized gains in a consolidated taxable subsidiary resulted in a deferred tax liability of $5.3 million.

Tax characteristics of all 2016 distributions were reported to stockholders on Form 1099 after the end of the calendar year. Our 2016 tax distributions of $0.73 per share were comprised of ordinary income. Our return of capital distributions since inception totaled $1.96 per share. 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 2016. For more information on our GAAP distributions, please refer to the Section 19 Notice that may be posted within the Distribution History section of our website.

At September 30, 2017, we had $4.9 million in cash and cash equivalents and $384.0 million of availability under our credit facility, subject to leverage and borrowing base restrictions, resulting in approximately $320 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 0.42x at quarter-end, and our 327% asset coverage ratio provided the Company with available debt capacity under its asset coverage requirements of $323.3 million. Further, as of quarter-end, 84% of our portfolio was invested in qualifying assets, exceeding the 70% regulatory requirement of a business development company.

Assets

Investments at fair value:

Non-controlled, non-affiliated investments (cost of $401,425,876 and $586,176,755)

Non-controlled, affiliated investments (cost of $169,685,526 and $112,640,458)

Controlled investments (cost of $318,562,249 and $322,768,014)

Total investments at fair value (cost of $889,673,651 and $1,021,585,227)

Cash and cash equivalents

Receivable for investments sold

Interest, dividends and fees receivable

Prepaid expenses and other assets

Total Assets

Liabilities

Debt

Interest payable

Distributions payable

Deferred tax liability

Base management fees payable

Accrued administrative services

Other accrued expenses and payables

Total Liabilities

Net Assets

Common stock, par value $.001 per share, 200,000,000 common shares authorized, 77,604,226 and 77,228,207 issued and 73,052,261 and 72,676,242 outstanding

Paid-in capital in excess of par

Undistributed / (Distributions in excess of) net investment income

Accumulated net realized loss on investments and extinguishment of debt

Net unrealized (depreciation), net of tax

Treasury stock at cost, 4,551,965 and 4,551,965 shares held

Total Net Assets

Total Liabilities and Net Assets

Net Asset Value Per Share

BlackRock Capital Investment Corporation

Consolidated Statements of Operations (Unaudited)

Investment Income:

Cash interest income:

Non-controlled, non-affiliated investments

Non-controlled, affiliated investments

Controlled investments

Total cash interest income

PIK interest income:

Non-controlled, non-affiliated investments

Non-controlled, affiliated investments

Controlled investments

Total PIK interest income

Fee income:

Non-controlled, non-affiliated investments

Non-controlled, affiliated investments

Controlled investments

Total fee income

Cash dividend income:

Non-controlled, non-affiliated investments

Controlled investments

Total cash dividend income

PIK dividend income:

Non-controlled, non-affiliated investments

Non-controlled, affiliated investments

Controlled investments

Total PIK dividend income

Other Income

Total investment income

Expenses:

Legal settlement

Base management fees

Interest and credit facility fees

Incentive management fees

Professional fees

Administrative services

Director fees

Investment advisor expenses

Other

Total expenses, before incentive management fee waiver

Incentive management fee waiver

Expenses, net of incentive management fee waiver

Net Investment Income (Loss)

Realized and Unrealized Gain (Loss):

Net realized gain (loss):

Non-controlled, non-affiliated investments

Controlled investments

Net realized gain (loss)

Net change in unrealized appreciation (depreciation) on:

Non-controlled, non-affiliated investments

Non-controlled, affiliated investments

Controlled investments

Foreign currency translation

Net change in unrealized appreciation (depreciation)

Net realized and unrealized gain (loss) before taxes

Deferred taxes

Net realized and unrealized gain (loss) after taxes

Realized losses on extinguishment of debt

Net Increase (Decrease) in Net Assets Resulting from Operations

Net Investment Income Per Share

Basic

Diluted

Earnings (Loss) Per Share

Basic

Diluted

Average Shares Outstanding

Basic

Diluted

Distributions Declared Per Share

GAAP Basis:

Net Investment Income

Net Investment Income per share

Addback: GAAP incentive management fee expense based on Gains

Addback: GAAP incentive management fee expense based on Income

Pre-Incentive Fee¹:

Net Investment Income

Net Investment Income per share

Less: Incremental incentive management fee expense based on Income

As Adjusted²:

Net Investment Income

Net Investment Income per share

Pre-Incentive Fee: Amounts are adjusted to remove all incentive management fees. Such fees are calculated but not necessarily due and payable at this time.

As Adjusted: Amounts are adjusted to remove the incentive management fee expense based on gains, as required by GAAP, and to include only the incremental incentive management fee expense based on Income. Until March 6, 2017, the incremental incentive management fee was calculated based on the current quarter’s incremental earnings, and without any reduction for incentive management fees paid during the prior calendar quarters. After March 6, 2017, incentive management fee expense based on income has been calculated for each calendar quarter and may be paid on a quarterly basis if certain thresholds are met. Amounts reflect the Company’s ongoing operating results and reflect the Company’s financial performance over time.