Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q1 2023 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, May 10, 2023
Slide 1: First Quarter Ended March 31, 2023 Earnings Presentation
Bain Capital Specialty Finance, Inc. First Quarter Ended March 31, 2023 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, 2023 Quarterly Highlights • Net investment income (NII) per share was $0.50, equating to an annualized NII yield on book value of 11.5%(1) • Net income per share was $0.45, equating to an annualized return on book value of 10.5%(1) SUMMARY OF FINANCIAL • Net asset value per s
Slide 4: Selected Quarterly Financial and Portfolio Information
QUARTER ENDED MARCH 31, 2023 Selected Quarterly Financial and Portfolio Information (Dollar amounts in millions, except share data) Q1 2022 Q2 2022 Q3 2022(5) Q4 2022 Q1 2023 Net investment income per share $0.34 $0.41 $0.47 $0.37 $0.50 Net realized gain (loss) per share $0.03 $0.04 $0.28 $(0.01) $(
Slide 5: Investment Activity and Asset Composition
QUARTER ENDED MARCH 31, 2023 Investment Activity and Asset Composition • During the quarter, new investment fundings totaled $308.0 million in 52 portfolio companies, including $116.1 million in 6 new companies, $156.9 million in 45 existing companies and $35.0 million in SLP. • Sales and repayments
Slide 6: Portfolio Highlights – Downside Management Focused
QUARTER ENDED MARCH 31, 2023 Portfolio Highlights – Downside Management Focused The portfolio primarily consists of loans that represent the first dollar of risk in a capital structure. We focus on investing in structures that provide strong lender controls. TOTAL INVESTMENTS AS OF QUARTER INVESTED
Slide 7: Portfolio Highlights - Diversification
QUARTER ENDED MARCH 31, 2023 Portfolio Highlights - Diversification Well-diversified portfolio by company, industry and geography PORTFOLIO CHARACTERISTICS INVESTMENT DIVERSIFICATION Investments at fair value ($M) $2,415.4 Investment Top 10 companies represent 24% of Unfunded commitments ($M) $291.7
Slide 8: Portfolio Company Fundamentals
QUARTER ENDED MARCH 31, 2023 Portfolio Company Fundamentals EBITDA AND NET LEVERAGE METRICS OF PORTFOLIO COMPANIES Median EBITDA Median Net Leverage $70 6.0x 5.5x 5.6x 5.4x 5.1x $60 4.9x 5.0x $56 $50 4.0x $47 $46 $43 $45 $40 $ Millions 3.0x $30 2.0x $20 1.0x $10 $- 0.0x Q1 2022 Q2 2022 Q3 2022 Q4 20
Slide 9: Overview of Investment Vehicles
QUARTER ENDED MARCH 31, 2023 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 $672.4 million $685.3 million VALUE NU
Slide 10: Credit Quality of Investments
QUARTER ENDED MARCH 31, 2023 Credit Quality of Investments Non-Accrual Investments • As of March 31, 2023, two portfolio companies were on non-accrual, representing 0.6% and 2.1% of the total investment portfolio at fair value and amortized cost, respectively. Investment Performance Rating Q2 2022 Q
Slide 11: Yield Comparison on Assets and Debt Outstanding
QUARTER ENDED MARCH 31, 2023 Yield Comparison on Assets and Debt Outstanding 14.0% 12.3% 12.0% 11.4% 10.2% 10.0% 8.5% 7.9% 8.0% 7.5% 7.6% 6.0% 5.0% 4.6% 3.7% 4.9% 4.0% 4.3% 3.6% 3.0% 3.2% 2.0% 2.9% 2.9% 0.7% 2.1% 0.1% 0.2% 0.0% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Weighted Average
Slide 12: Quarterly Operating Results
QUARTER ENDED MARCH 31, 2023 Quarterly Operating Results (Dollar amounts in thousands, except share data) Q1 2022 Q2 2022 Q3 2022(2) Q4 2022 Q1 2023 Investment Income Interest income(1) $41,945 $38,304 $48,141 $52,920 $61,096 Dividend income 3,601 6,370 6,345 6,834 8,393 Other income 465 7,690 4,329
Slide 13: Quarterly Balance Sheets
QUARTER ENDED MARCH 31, 2023 Quarterly Balance Sheets (Dollar amounts in thousands, except share data) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Assets Investments at fair value $2,154,672 $2,287,038 $2,293,522 $2,386,977 $2,415,377 Cash and cash equivalents (including foreign cash) 80,807 43,016 44,1
Slide 14: Net Asset Value Per Share Bridge
QUARTER ENDED MARCH 31, 2023 Net Asset Value Per Share Bridge $0.50 $0.13 ($0.17) $(0.38) $0.00 $17.37 $17.29 Beginning NAV per Net Investment Net Change in Net Realized Gain Net Unrealized and Dividends Declared Ending NAV per Share Share 12/31/22 Income Unrealized (Losses) on Realized Activity on
Slide 15: Debt Summary
QUARTER ENDED MARCH 31, 2023 Debt Summary Diverse financing structures and no debt maturities until 2026 Commitment Amount ($M) Principal Outstanding ($M) Interest Rate Maturity Date Sumitomo Credit Facility(1) $665.0 $465.0 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, 2023 Net Investment Income (NII) and Dividend Information Dividend Yield on Book Value NII Per Share Dividend Coverage 138% 150% 132% 121% 10% 107% 109% 103% 100% 100% 100% 100% 97% 100% 100% 100% 100% 100% 100% 100% 9% 8.9% 8.8% 8.5% 8.4% 50% 8.4% 8.3% 8.3% 8.3% 8.3% 8.2% 8.
Slide 17: Quarterly Distribution Information
QUARTER ENDED MARCH 31, 2023 Quarterly Distribution Information Date Declared Record Date Payment Date Distribution Amount Per Share May 9, 2023 June 30, 2023 July 31, 2023 $0.38 February 28, 2023 March 31, 2023 April 28, 2023 $0.38 November 9, 2022 December 31, 2022 January 27, 2023 $0.36 August 3,
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