Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q4 2020 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter 2020 Earnings Presentation
Bain Capital Specialty Finance, Inc. Fourth Quarter 2020 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: $47.7 million. Median leverage through investment: 5.3x Investment Focus • Highly diversified portfolio of inv
Slide 5: Portfolio Highlights
Portfolio Highlights We have invested approximately $3.9 billion in aggregate principal since inception, driven by a robust origination pipeline and global sourcing capabilities. Portfolio $2,484M 114 108 109 107 105 105 Companies Current Portfolio Size March 2020 June 2020 July 2020 Portfolio Compa
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 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Net investment income per share $0.41 $0.44 $0.37 $0.33 $0.34 Net
Slide 7: Selected Quarterly Financial Information
Selected Quarterly Financial Information (Dollar amounts in millions) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Originations and Net Investment Activity: Investment Fundings $341.4 $276.1 $49.2 $29.2 $172.6 Sales and Repayments 333.5 180.7 67.1 89.9 188.1 Net Investment Activity 7.9 95.4 (17.9) (60.7)
Slide 8: Quarterly Balance Sheets (Quarter Ended December 31, 2020)
Quarterly Balance Sheets (Quarter Ended December 31, 2020) $ in '000s Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Assets Investments at fair value $ 2,527,055 $ 2,484,533 $ 2,475,987 $ 2,459,657 $ 2,484,488 Cash and cash equivalents 36,531 55,128 76,364 43,020 53,704 Foreign cash 810 632 305 2,009 972 R
Slide 9: Quarterly Operating Results (Quarter Ended December 31, 2020)
Quarterly Operating Results (Quarter Ended December 31, 2020) $ in '000s Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Interest income $ 53,335 $ 48,643 $ 44,885 $ 44,329 $ 45,118 Dividend income 1,254 2,413 2,927 1,881 2,103 Other income 178 440 59 607 1,055 Total Investment Income $ 54,767 $ 51,496 $ 47
Slide 10: Net Asset Value Bridge – Q4 2020
Net Asset Value Bridge – Q4 2020 $0.02 $0.25 $16.54 ($0.34) $16.27 $0.34 Beginning NAV per Net Investment Net Change in Net Realized Gains Dividends Declared Ending NAV per Share 9/30/20 Income Unrealized (Losses) Share 12/31/20 Appreciation (Depreciation) Note: Net Asset Value per share is based on
Slide 11: Portfolio Overview
Portfolio Overview The Fair Value of Investments for BCSF as of December 31, 2020 is $2,484.5 million. Fair Value of Investments (in millions) (1) First Lien Second Lien Investment Vehicles Corporate Bonds Subordinated Debt Equity & Warrants $3,000M $2,507M $2,527M $2,485M $2,476M $2,484M $2,427M $2
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 Equity Interest Preferred 5% Equ
Slide 13: BCSF Portfolio Overview
BCSF Portfolio Overview Portfolio Characteristics Industry Aerospace & Defense Investments at Fair Value $2,484.5M Transportation: High Tech 11.9% Consumer Industries 2.5% 11.9% Automative Other 15.9% Unfunded Commitments $189.9M 2.7% Healthcare & FIRE: Insurance Pharmaceuticals 2.7% 8.9% Yield at F
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 9.0% 3 Month London Interbank Offer Rate 8.0% 8.0% 7.5% 7.3% 7.8% 7.1% 7.1% 7.0% 7.3% 7.1% 6.
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 1.63x 1.48x 1.55x 1.52x 1.45x 1.80x $1,600M 1.37x $1,400M 1.78x 1.60x $1,200M 1.40x 1.48x 1.48x 1.42x 1.35x 1.33x 1.20x $1,000M 0.90x 1.30x 0.64x 1.00x $800M 0.80x $600M 0.
Slide 16: Credit Quality of Investments
Credit Quality of Investments Investment Performance Rating As of December 31, 2020 As of September 30, 2020 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 December 22, 2016 December 22, 2016 January 17, 2017 $0.015 May 9, 2017 May 12, 2017 May 19, 2017 $0.07 June 21, 2017 June 29, 2017 August 11, 2017 $0.11 September 27, 2017 September 28, 2017 November 14, 2017
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