Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q4 2022 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, Mar 1, 2023
Slide 1: Bain Capital Specialty Finance, Inc. Fourth Quarter 2022 Earnings Presentation
Bain Capital Specialty Finance, Inc. Fourth 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: $46.4 million. Median leverage through investment: 5.1x Investment Focus • Highly diversified portfolio of inv
Slide 5: Portfolio Highlights
Portfolio Highlights We have invested approximately $6.5 billion in aggregate principal since inception, driven by a robust origination pipeline and global sourcing capabilities. Portfolio 106 115 122 130 132 $2,387M Companies 132 October 2021 February 2022 September 2022 December 2022 Increased Cur
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) Q4 2021 Q1 2022 Q2 2022 Q3 2022(6) Q4 2022 Net investment income per share $0.34 $0.34 $0.41 $0.47 $0.37 N
Slide 7: Selected Quarterly Financial Information
Selected Quarterly Financial Information (Dollar amounts in millions) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Originations and Net Investment Activity: Investment Fundings $291.1 $371.0 $481.9 $433.0 $220.7 Sales and Repayments 369.5 521.0 332.4 396.5 162.0 Net Investment Activity (78.4) (150.0) 149
Slide 8: Quarterly Balance Sheets (Quarter Ended December 31, 2022)
Quarterly Balance Sheets (Quarter Ended December 31, 2022) $ in '000s Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Assets Investments at fair value $ 2,289,105 $ 2,154,672 $ 2,287,038 $ 2,293,522 $ 2,386,977 Cash and cash equivalents 87,443 55,963 38,013 32,343 30,205 Foreign cash 29,979 24,844 5,003 11,
Slide 9: Quarterly Operating Results (Quarter Ended December 31, 2022)
Quarterly Operating Results (Quarter Ended December 31, 2022) $ in '000s Q4 2021 Q1 2022 Q2 2022 Q3 2022(2) Q4 2022 (1) Interest income $ 45,352 $ 41,945 $ 38,304 $ 48,141 $ 52,920 Dividend income 5,515 3,601 6,370 6,340 6,834 Other income 661 465 7,690 4,329 2,607 Total Investment Income $ 51,528 $
Slide 10: Net Asset Value Bridge – Q4 2022
Net Asset Value Bridge – Q4 2022 $0.29 $0.02 $0.37 $17.29 $16.98 ($0.01) ($0.36) Beginning NAV per Net Investment Net Change in Net Realized Gain Net Unrealized and Dividends Declared Ending NAV per Share 9/30/22 Income Unrealized (Losses) on Realized Activity on Share 12/31/22 Appreciation Investme
Slide 11: Portfolio Overview
Portfolio Overview The fair value of investments for BCSF as of December 31, 2022, is $2,387.0 million. Fair Value of Investments (in millions) First Lien Second Lien Investment Vehicles Structured Products Subordinated Debt Equity & Warrants (1) $3,000M 96% of the investments held in the Investment
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 96% of the investments held in t
Slide 13: BCSF Portfolio Overview
BCSF Portfolio Overview Portfolio Characteristics Industry Retail 2.1% Investments at Fair Value $2,387.0M Telecommunications Aerospace & 2.2% Defense Investment Other 15.2% Vehicles FIRE: Insurance 13.0% 12.7% Unfunded Commitments $303.7M 2.5% Consumer Goods: Durable Yield at Fair Value of Investme
Slide 14: Portfolio Yield
Portfolio Yield Yield Analysis Weighted Average Portfolio Yield at Amortized Cost (1) (2) Weighted Average Portfolio Interest Rate at Amortized Cost Weighted Average Stated Interest Rate on Debt Outstanding 3 Month London Interbank Offer Rate 12.0% 11.4% 10.2% 11.2% 10.0% 10.0% 8.5% 7.9% 8.0% 7.5% 7
Slide 15: Debt Summary
Debt Summary Outstanding Debt and Debt to Equity Ratio (1) (2) Outstanding Debt Gross Leverage Net Leverage $1,600M 1.37x 1.30x 1.60x 1.26x 1.20x 1.23x 1.25x 1.25x $1,400M 1.40x 1.14x $1,200M 0.99x 1.20x 1.30x $1,000M 1.15x 1.15x 1.20x 1.00x 1.12x 1.12x 1.14x 1.07x $800M 0.80x 0.89x $600M 0.60x $400
Slide 16: Credit Quality of Investments
Credit Quality of Investments Investment Performance Rating As of December 31, 2022 As of September 30, 2022 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 Tot
Slide 17: Quarterly Distribution Information
Quarterly Distribution Information Date Declared Record Date Payment Date Amount Per Share June 28, 2018 June 28, 2018 August 10, 2018 $0.36 September 26, 2018 September 26, 2018 October 19, 2018 $0.41 December 19, 2018 December 31, 2018 January 14, 2019 $0.41 February 21, 2019 March 29, 2019 April
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