Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q2 2024 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, Aug 7, 2024
Slide 1: Second Quarter Ended June 30, 2024 Earnings Presentation
Bain Capital Specialty Finance, Inc. Second Quarter Ended June 30, 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 JUNE 30, 2024 Quarterly Highlights • Net investment income (NII) per share was $0.51, equating to an annualized NII yield on book value of 11.6%(1) • Net income per share was $0.45, equating to an annualized return on book value of 10.2%(1) SUMMARY OF FINANCIAL • Net asset value per sh
Slide 4: Selected Quarterly Financial and Portfolio Information
QUARTER ENDED JUNE 30, 2024 Selected Quarterly Financial and Portfolio Information (Dollar amounts in millions, except share data) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net investment income per share $0.60 $0.55 $0.54 $0.53 $0.51 Net realized gain (loss) per share $(0.01) $(0.80) $0.31 $0.06 $(0.
Slide 5: Investment Activity and Asset Composition
QUARTER ENDED JUNE 30, 2024 Investment Activity and Asset Composition • During the quarter, new investment fundings totaled $306.7 million in 77 portfolio companies, including $143.4 million in 11 new companies, $123.8 million in 59 existing companies, $12.0 million in 6 companies to be contributed
Slide 6: Portfolio Highlights – Downside Management Focused
QUARTER ENDED JUNE 30, 2024 Portfolio Highlights – Downside Management Focused The portfolio primarily consists of loans that represent the first dollar of risk in a capital structure. We focus on investing in structures that provide strong lender controls. TOTAL INVESTMENTS AS OF QUARTER INVESTED E
Slide 7: Portfolio Highlights - Diversification
QUARTER ENDED JUNE 30, 2024 Portfolio Highlights - Diversification Well-diversified portfolio by company, industry and geography PORTFOLIO CHARACTERISTICS INVESTMENT DIVERSIFICATION Investments at fair value ($M) $2,237.5 Top 10 companies represent 23% of Investment the portfolio at fair value Unfun
Slide 8: Portfolio Company Fundamentals
QUARTER ENDED JUNE 30, 2024 Portfolio Company Fundamentals EBITDA AND NET LEVERAGE METRICS OF PORTFOLIO COMPANIES Median EBITDA Median Net Leverage $70 6.0x 5.1x 5.0x $60 4.9x 4.8x 4.9x 4.7x 5.0x $58 $58 $56 $53 $50 $49 4.0x $40 $44 $ Millions 3.0x $30 2.0x $20 1.0x $10 $- 0.0x Q1 2023 Q2 2023 Q3 20
Slide 9: Overview of Investment Vehicles
QUARTER ENDED JUNE 30, 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 $655.9 million $983.4 million VALUE NUM
Slide 10: Credit Quality of Investments
QUARTER ENDED JUNE 30, 2024 Credit Quality of Investments Non-Accrual Investments • As of June 30, 2024, three portfolio companies were on non-accrual, representing 1.2% and 1.0% of the total investment portfolio at amortized cost and fair value, respectively. Investment Performance Rating Q3 2023 Q
Slide 11: Yield Comparison on Assets and Debt Outstanding
QUARTER ENDED JUNE 30, 2024 Yield Comparison on Assets and Debt Outstanding 14.0% 12.9% 13.0% 12.9% 13.1% 12.8% 12.3% 12.0% 11.4% 10.2% 10.0% 8.0% 6.0% 5.3% 5.4% 5.3% 5.3% 5.3% 5.0% 4.6% 5.4% 5.3% 4.9% 5.2% 5.2% 5.1% 4.0% 3.7% 4.3% 3.6% 2.0% 0.0% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 20
Slide 12: Quarterly Operating Results
QUARTER ENDED JUNE 30, 2024 Quarterly Operating Results (Dollar amounts in thousands, except share data) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Investment Income Interest income(1) $65,065 $62,814 $62,419 $60,977 $60,892 Dividend income 8,728 8,568 10,145 8,267 8,238 Other income 1,922 1,008 2,383
Slide 13: Quarterly Balance Sheets
QUARTER ENDED JUNE 30, 2024 Quarterly Balance Sheets (Dollar amounts in thousands, except share data) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Assets Investments at fair value $2,385,272 $2,390,198 $2,298,343 $2,405,952 $2,237,491 Cash and cash equivalents (including foreign cash) 92,339 79,498 49,40
Slide 14: Net Asset Value Per Share Bridge
QUARTER ENDED JUNE 30, 2024 Net Asset Value Per Share Bridge $0.51 $0.02 $(0.08) $0.00 $(0.42) $17.70 $(0.03) $17.70 Ending NAV per Net Investment Net Change in Net Realized Gain Net Unrealized and Q2'24 Regular Q2'24 Special Ending NAV per Share 3/31/2024 Income Unrealized (Losses) on Realized Acti
Slide 15: Debt Summary
QUARTER ENDED JUNE 30, 2024 Debt Summary Diverse financing structures and no debt maturities until 2026 Commitment Amount ($M) Principal Outstanding ($M) Interest Rate Maturity Date Sumitomo Credit Facility(1) $855.0 $227.7 RR+1.875% 05/18/29 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 JUNE 30, 2024 Net Investment Income (NII) and Dividend Information Regular Dividend Yield Special Dividend Yield NII Dividend Coverage (Regular) 158% 14% 138% 132% 150% 131% 129% 126% 121% 121% 107% 109% 103% 12% 100% 97% 100% 100% 100% 100% 100% 100% 100% 10.2% 10.2% 10% 9.6% 0.0% 9.6
Slide 17: Quarterly Distribution Information
QUARTER ENDED JUNE 30, 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(1) $0.03 May 6, 2024 September 30, 2024 October 31, 2024 Special Dividend(1) $0.03 August
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