Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q1 2022 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, May 6, 2022
Slide 1: Bain Capital Specialty Finance, Inc. First Quarter 2022 Earnings Presentation
Bain Capital Specialty Finance, Inc. First Quarter 2022 Earnings Presentation
Slide 2: Disclaimer
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 Advisors, LP, Bain Capital Credit U.S. C
Slide 3: Disclaimer
Disclaimer Certain information contained herein are not purely historical in nature, but are "forward-looking statements," which can be identified by the use of terms such as "may," "will," "should," "expect,“ "anticipate," "project," "estimate," "intend," "continue," or "believe" (or negatives ther
Slide 4: Bain Capital Specialty Finance ("BCSF") Highlights
Bain Capital Specialty Finance (“BCSF”) Highlights • Primary focus is directly originating loans to middle market, sponsor backed companies with $10-150M of EBITDA. Portfolio median EBITDA: $43.4 million. Median leverage through investment: 5.5x Investment Focus • Highly diversified portfolio of inv
Slide 5: Portfolio Highlights
Portfolio Highlights We have invested approximately $5.3 billion in aggregate principal since inception, driven by a robust origination pipeline and global sourcing capabilities. Portfolio 101 104 105 106 115 $2,155M Companies 115 February 2021 July 2021 October 2021 February 2022 Current Portfolio
Slide 6: Selected Quarterly Financial Information
Selected Quarterly Financial Information (Dollar amounts in millions, except share data; per share data is based on weighted average shares outstanding during period, except as otherwise noted) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Net investment income per share $0.34 $0.34 $0.34 $0.34 $0.34 Net
Slide 7: Selected Quarterly Financial Information
Selected Quarterly Financial Information (Dollar amounts in millions) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Originations and Net Investment Activity: Investment Fundings $383.9 $213.2 $286.4 $291.1 $371.0 Sales and Repayments 549.4 257.7 254.9 369.5 521.0 Net Investment Activity (165.5) (44.5) 31.
Slide 8: Quarterly Balance Sheets (Quarter Ended March 31, 2022)
Quarterly Balance Sheets (Quarter Ended March 31, 2022) $ in '000s Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Assets Investments at fair value $ 2,335,739 $ 2,319,540 $ 2,356,671 $ 2,289,105 $ 2,154,672 Cash and cash equivalents 36,248 29,869 34,277 87,443 55,963 Foreign cash 1,413 1,707 829 29,979 24,
Slide 9: Quarterly Operating Results (Quarter Ended March 31, 2022)
Quarterly Operating Results (Quarter Ended March 31, 2022) $ in '000s Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 (1) Interest income $ 44,339 $ 42,686 $ 45,726 $ 45,352 $ 41,945 Dividend income 2,036 2,929 2,638 5,515 3,601 Other income 3,456 875 1,181 661 465 Total Investment Income $ 49,831 $ 46,490
Slide 10: Net Asset Value Bridge – Q1 2022
Net Asset Value Bridge – Q1 2022 $0.12 $0.02 $0.04 $17.04 $0.34 $17.22 ($0.34) Beginning NAV per Net Investment Net Change in Net Realized Gain Net Unrealized and Dividends Declared Ending NAV per Share 12/31/21 Income Unrealized (Losses) on Realized Activity on Share 3/31/22 Appreciation Investment
Slide 11: Portfolio Overview
Portfolio Overview The fair value of investments for BCSF as of March 31, 2022, is $2,154.7 million. Fair Value of Investments (in millions) (1) First Lien Second Lien Subordinated Debt Equity & Warrants Investment Vehicles $3,000 $2,485 $2,476 $2,460 $2,484 $2,500 $2,336 $2,320 $2,357 $2,289 $2,155
Slide 12: Portfolio Overview
Portfolio Overview 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. Portfolio Composition Focus on First Dollar Risk (1) Focus on Control Non-Sponsored Investment Vehicle
Slide 13: BCSF Portfolio Overview
BCSF Portfolio Overview Portfolio Characteristics Industry Construction & Building Services: Investments at Fair Value $2,154.7M 2.7% Aerospace & Business 11.5% Defense Retail 13.8% 2.8% Other 15.7% Unfunded Commitments $235.1M Hotel, Gaming & Investment Leisure Vehicles 3.0% Yield at Fair Value of
Slide 14: Portfolio Yield
Portfolio Yield Yield Analysis (1) Weighted Average Portfolio Yield at Amortized Cost (2) Weighted Average Portfolio Interest Rate at Amortized Cost Weighted Average Stated Interest Rate on Debt Outstanding 3 Month London Interbank Offer Rate 9.0% 7.9% 8.0% 7.6% 7.5% 7.5% 7.6% 7.3% 7.1% 7.6% 7.0% 7.
Slide 15: Debt Summary
Debt Summary Outstanding Debt and Debt to Equity Ratio (1) (2) Outstanding Debt Gross Leverage Net Leverage $1,800M 1.86x 2.00x 1.52x 1.45x 1.80x $1,600M 1.37x 1.26x 1.23x 1.30x 1.60x $1,400M 1.78x 1.20x $1,200M 0.99x 1.40x 1.42x 1.20x $1,000M 1.33x 1.30x 1.15x 1.15x 1.00x $800M 1.12x 1.12x 0.80x $6
Slide 16: Credit Quality of Investments
Credit Quality of Investments Investment Performance Rating As of March 31, 2022 As of December 31, 2021 Investment Fair Value Percentage of Number of Percentage of Fair Value Percentage of Number of Percentage of Performance Rating (millions) Total Companies Total (millions) Total Companies Total 1
Slide 17: Quarterly Distribution Information
Quarterly Distribution Information Date Declared Record Date Payment Date Amount Per Share September 27, 2017 September 28, 2017 November 14, 2017 $0.21 December 26, 2017 December 28, 2017 January 24, 2018 $0.31 March 28, 2018 March 28, 2018 May 17, 2018 $0.34 June 28, 2018 June 28, 2018 August 10,
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