Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q4 2019 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, Feb 28, 2020
Slide 1: Fourth Quarter 2019 Earnings Presentation
Bain Capital Specialty Finance, Inc. Fourth Quarter 2019 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 Investment EBITDA. Portfolio median EBITDA: $47.1 million. Median leverage through investment: 5.2x Focus • Highly diversified portfolio of inv
Slide 5: Portfolio Highlights
Portfolio Highlights We have invested approximately $3.5 billion in aggregate principal since inception, driven by a robust origination pipeline and global sourcing capabilities. Portfolio 132 133 123 126 114 Companies $2,527M 114 Feb 2019 Current Portfolio Size Portfolio Companies Entered into Nov
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 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Net investment income per share $0.41 $0.41 $0.41 $0.41 $0.41 Net
Slide 7: Selected Quarterly Financial Information
Selected Quarterly Financial Information (Dollar amounts in millions) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Originations and Net Investment Activity: Investment Fundings $451.8 $275.5 $403.1 (2) $274.8 $341.4 Sales and Repayments 42.7 192.2 378.1 (2) 184.2 333.5 Net Investment Activity 409.1 83.3
Slide 8: Quarterly Balance Sheets (Quarter Ended December 31, 2019)
Quarterly Balance Sheets (Quarter Ended December 31, 2019) $ in '000s Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Assets Investments at fair value $ 1,727,806 $ 1,829,940 $ 2,427,415 $ 2,506,734 $ 2,527,055 Cash and cash equivalents 14,693 79,140 100,358 70,637 36,531 Foreign cash 591 1,479 599 992 810
Slide 9: Quarterly Operating Results (Quarter Ended December 31, 2019)
Quarterly Operating Results (Quarter Ended December 31, 2019) For Three Months Ended $ in '000s Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Interest income $ 24,461 $ 30,495 $ 45,073 $ 51,491 $ 53,335 Dividend income 9,041 9,373 5,152 961 1,254 Other income 246 22 373 236 178 Total Investment Income $ 3
Slide 10: Net Asset Value Bridge – Q4 2019
Net Asset Value Bridge – Q4 2019 $0.04 $(0.04) $0.41 $(0.41) $19.71 $19.72 Beginning NAV Net Investment Net Change in Net Realized Stockholder Ending NAV per share 9/30/2019 Income Unrealized Gains (Losses) Distribution per share 12/31/2019 Appreciation (Depreciation) Note: Net Asset Value per share
Slide 11: Portfolio Overview
Portfolio Overview The Fair Value of Investments for BCSF as of December 31, 2019 is $2,527.1 million. Fair Value of Investments (in millions) $3,000M $2,507M $2,527M $2,500M $2,427M $2,000M $1,830M $1,728M $1,500M $1,351M $1,069M $1,000M $915M $832M $500M $- Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018
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 4% Preferred Cor
Slide 13: BCSF Portfolio Overview
BCSF Portfolio Overview Portfolio Characteristics Industry FIRE: Insurance 2.1% Aerospace & Investments at Fair Value $2,527.1M Media: Advertising, High Tech Defense Printing & Publishing Industries 12.2% 2.2% 14.1% Other Transportation: 15.0% Unfunded Commitments $215.8M Consumer 2.3% Consumer Good
Slide 14: Portfolio Yield
Portfolio Yield Yield Analysis 10.0% 8.8% 8.8% 8.9% 9.0% 8.7% 8.6% 8.3% 8.9% 8.9% 8.1% 8.6% 8.6% 8.7% 7.8% 7.8% 8.0% 8.2% 8.1% 7.9% 7.8% 7.0% 6.0% 5.0% 4.9% 4.9% 4.7% 4.0% 4.3% 4.5% 4.5% 4.2% 3.8% 3.0% 3.5% 2.8% 2.0% 2.4% 2.6% 2.3% 2.3% 2.3% 2.1% 1.9% 1.7% 1.0% 0.0% Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q
Slide 15: Debt Summary
Debt Summary Outstanding Debt and Debt to Equity Ratio (1) Outstanding Debt Gross Leverage Net Leverage (2) $1,800M 1.63x 1.80x 1.55x $1,600M 1.48x 1.60x $1,400M 1.40x 1.48x 1.48x $1,200M 1.35x 1.20x 0.89x 0.90x $1,000M 0.68x 0.64x 1.00x $800M 0.61x 0.61x 0.59x 0.80x $600M 0.81x 0.60x 0.42x 0.40x $4
Slide 16: Credit Quality of Investments
Credit Quality of Investments Investment Performance Rating As of December 31, 2019 As of September 30, 2019 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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