Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q1 2024 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, May 7, 2024
Slide 1: First Quarter Ended March 31, 2024 Earnings Presentation
Bain Capital Specialty Finance, Inc. First Quarter Ended March 31, 2024 Earnings Presentation
Slide 2: Disclaimer
BAIN CAPITAL SPECIALTY FINANCE, INC. Disclaimer In this material Bain Capital Credit, LP, Bain Capital Credit (Asia), Limited, Bain Capital Credit (Australia), Pty. Ltd., Bain Capital Credit, Ltd., Bain Capital (Ireland) Limited, Bain Capital Investments (Europe) Limited, Bain Capital Credit CLO Adv
Slide 3: Quarterly Highlights
QUARTER ENDED MARCH 31, 2024 Quarterly Highlights • Net investment income (NII) per share was $0.53, equating to an annualized NII yield on book value of 12.0%(1) • Net income per share was $0.55, equating to an annualized return on book value of 12.5%(1) SUMMARY OF FINANCIAL • Net asset value per s
Slide 4: Selected Quarterly Financial and Portfolio Information
QUARTER ENDED MARCH 31, 2024 Selected Quarterly Financial and Portfolio Information (Dollar amounts in millions, except share data) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net investment income per share $0.50 $0.60 $0.55 $0.54 $0.53 Net realized gain (loss) per share $(0.27) $(0.01) $(0.80) $0.31 $
Slide 5: Investment Activity and Asset Composition
QUARTER ENDED MARCH 31, 2024 Investment Activity and Asset Composition • During the quarter, new investment fundings totaled $403.1 million in 83 portfolio companies, including $238.4 million in 7 new companies, $127.3 million in 60 existing companies, $34.4 million in 15 companies to be contributed
Slide 6: Portfolio Highlights – Downside Management Focused
QUARTER ENDED MARCH 31, 2024 Portfolio Highlights – Downside Management Focused The portfolio primarily consists of loans that represent the first dollar of risk in a capital structure. We focus on investing in structures that provide strong lender controls. TOTAL INVESTMENTS AS OF QUARTER INVESTED
Slide 7: Portfolio Highlights - Diversification
QUARTER ENDED MARCH 31, 2024 Portfolio Highlights - Diversification Well-diversified portfolio by company, industry and geography PORTFOLIO CHARACTERISTICS INVESTMENT DIVERSIFICATION Investments at fair value ($M) $2,406.0 Top 10 companies represent 23% of Investment the portfolio at fair value Unfu
Slide 8: Portfolio Company Fundamentals
QUARTER ENDED MARCH 31, 2024 Portfolio Company Fundamentals EBITDA AND NET LEVERAGE METRICS OF PORTFOLIO COMPANIES Median EBITDA Median Net Leverage $70 6.0x 5.1x 5.1x 5.0x $60 4.9x 4.8x 4.7x 5.0x $58 $58 $56 $53 $50 4.0x $46 $40 $44 $ Millions 3.0x $30 2.0x $20 1.0x $10 $- 0.0x Q4 2022 Q1 2023 Q2 2
Slide 9: Overview of Investment Vehicles
QUARTER ENDED MARCH 31, 2024 Overview of Investment Vehicles Our investment vehicles consist of joint venture investments that focus on first lien, floating rate loans. INTERNATIONAL SENIOR LOAN PROGRAM (ISLP) SENIOR LOAN PROGRAM (SLP) TOTAL INVESTMENTS AT FAIR $731.2 million $811.4 million VALUE NU
Slide 10: Credit Quality of Investments
QUARTER ENDED MARCH 31, 2024 Credit Quality of Investments Non-Accrual Investments • As of March 31, 2024, three portfolio companies were on non-accrual, representing 1.7% and 1.0% of the total investment portfolio at amortized cost and fair value, respectively. Investment Performance Rating Q2 2023
Slide 11: Yield Comparison on Assets and Debt Outstanding
QUARTER ENDED MARCH 31, 2024 Yield Comparison on Assets and Debt Outstanding 14.0% 12.8% 12.9% 13.0% 12.9% 12.3% 12.0% 11.4% 10.2% 10.0% 8.5% 8.0% 6.0% 5.3% 5.4% 5.3% 5.3% 5.0% 4.3% 5.4% 5.3% 4.9% 5.2% 5.2% 4.0% 3.7% 3.2% 4.6% 2.3% 3.6% 2.0% 0.0% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 20
Slide 12: Quarterly Operating Results
QUARTER ENDED MARCH 31, 2024 Quarterly Operating Results (Dollar amounts in thousands, except share data) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Investment Income Interest income(1) $61,096 $65,065 $62,814 $62,419 $60,977 Dividend income 8,393 8,728 8,568 10,145 8,267 Other income 5,248 1,922 1,008
Slide 13: Quarterly Balance Sheets
QUARTER ENDED MARCH 31, 2024 Quarterly Balance Sheets (Dollar amounts in thousands, except share data) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Assets Investments at fair value $2,415,377 $2,385,272 $2,390,198 $2,298,343 $2,405,952 Cash and cash equivalents (including foreign cash) 29,643 92,339 79,4
Slide 14: Net Asset Value Per Share Bridge
QUARTER ENDED MARCH 31, 2024 Net Asset Value Per Share Bridge $0.53 $(0.05) $0.03 $0.04 $(0.42) $17.60 $(0.03) $17.70 Ending NAV per Net Investment Net Change in Net Realized Gain Net Unrealized and Q1'24 Regular Q1'24 Special Ending NAV per Share 12/31/23 Income Unrealized (Losses) on Realized Acti
Slide 15: Debt Summary
QUARTER ENDED MARCH 31, 2024 Debt Summary Diverse financing structures and no debt maturities until 2026 Commitment Amount ($M) Principal Outstanding ($M) Interest Rate Maturity Date Sumitomo Credit Facility(1) $665.0 $412.0 RR+1.875% 12/24/26 March 2026 Notes 300.0 300.0 2.95% 03/10/26 October 2026
Slide 16: Net Investment Income (NII) and Dividend Information
QUARTER ENDED MARCH 31, 2024 Net Investment Income (NII) and Dividend Information Dividend Yield on Book Value NII Per Share Dividend Coverage 158% 12% 138% 132% 150% 131% 121% 129% 118% 107% 109% 103% 11% 100% 100% 97% 100% 100% 100% 100% 100% 100% 100% 10.2% 10% 9.6% 9.6% 50% 9% 8.9% 8.8% 8.7% 8.5
Slide 17: Quarterly Distribution Information
QUARTER ENDED MARCH 31, 2024 Quarterly Distribution Information Date Declared Record Date Payment Date Dividend Type Distribution Amount Per Share May 6, 2024 December 31, 2024 January 31, 2025 Special Dividend(2) $0.03 May 6, 2024 September 30, 2024 October 31, 2024 Special Dividend(2) $0.03 May 6,
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