Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q1 2020 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, May 7, 2020
Slide 1: First Quarter 2020 Earnings Presentation
Bain Capital Specialty Finance, Inc. First 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 Investment EBITDA. Portfolio median EBITDA: $50.8 million. Median leverage through investment: 5.2x Focus • Highly diversified portfolio of inv
Slide 5: Portfolio Highlights
Portfolio Highlights We have invested approximately $3.7 billion in aggregate principal since inception, driven by a robust origination pipeline and global sourcing capabilities. Portfolio 133 123 126 114 108 Companies $2,485M 108 Feb 2019 Current Portfolio Size Portfolio Companies Entered into Marc
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 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Net investment income per share $0.41 $0.41 $0.41 $0.41 $0.44 Net
Slide 7: Selected Quarterly Financial Information
Selected Quarterly Financial Information (Dollar amounts in millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Originations and Net Investment Activity: Investment Fundings $275.5 $403.1 (2) $274.8 $341.4 $276.1 Sales and Repayments 192.2 378.1 (2) 184.2 333.5 180.7 Net Investment Activity 83.3 25.0
Slide 8: Quarterly Balance Sheets (Quarter Ended March 31, 2020)
Quarterly Balance Sheets (Quarter Ended March 31, 2020) $ in '000s Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Assets Investments at fair value $ 1,829,940 $ 2,427,415 $ 2,506,734 $ 2,527,055 $ 2,484,533 Cash and cash equivalents 79,140 100,358 70,637 36,531 55,128 Foreign cash 1,479 599 992 810 632 Res
Slide 9: Quarterly Operating Results (Quarter Ended March 31, 2020)
Quarterly Operating Results (Quarter Ended March 31, 2020) For Three Months Ended $ in '000s Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Interest income $ 30,495 $ 45,073 $ 51,491 $ 53,335 $ 48,643 Dividend income 9,373 5,152 961 1,254 2,413 Other income 22 373 236 178 440 Total Investment Income $ 39,8
Slide 10: Net Asset Value Bridge – Q1 2020
Net Asset Value Bridge – Q1 2020 $19.72 $0.44 $(2.28) $(0.18) $17.29 $(0.41) Beginning NAV Net Investment Net Change in Net Realized Stockholder Ending NAV per share 12/31/2019 Income Unrealized Gains (Losses) Distribution per share 3/31/2020 Appreciation (Depreciation) Note: Net Asset Value per sha
Slide 11: Portfolio Overview
Portfolio Overview The Fair Value of Investments for BCSF as of March 31, 2020 is $2,484.5 million. Fair Value of Investments (in millions) $3,000M $2,507M $2,527M $2,485M $2,500M $2,427M $2,000M $1,830M $1,728M $1,500M $1,351M $1,069M $1,000M $915M $500M $- Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q
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 Sub
Slide 13: BCSF Portfolio Overview
BCSF Portfolio Overview Portfolio Characteristics Industry Media: Advertising, Printing & Publishing 2.1% Investments at Fair Value $2,484.5M FIRE: Insurance High Tech Aerospace & 2.3% Defense Industries 12.4% Transportation: Other 15.2% Consumer 13.9% Unfunded Commitments $90.9M 2.4% Consumer Goods
Slide 14: Portfolio Yield
Portfolio Yield Yield Analysis 10.0% 8.8% 8.9% 8.9% 9.0% 8.7% 8.6% 8.9% 8.1% 7.9% 8.6% 8.6% 8.7% 8.8% 7.8% 8.0% 7.6% 8.1% 7.8% 7.8% 7.0% 7.3% 6.0% 5.0% 4.9% 4.9% 4.7% 4.0% 4.3% 4.5% 4.5% 4.2% 4.1% 3.8% 3.0% 2.8% 2.0% 2.4% 2.6% 2.3% 2.3% 2.3% 2.1% 1.9% 1.0% 1.5% 0.0% Q1 2018 Q2 2018 Q3 2018 Q4 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 1.86x 2.00x 1.63x 1.48x 1.55x 1.80x $1,600M $1,400M 1.78x 1.60x $1,200M 1.40x 1.48x 1.48x 1.35x 1.20x $1,000M 0.89x 0.90x 0.68x 0.64x 1.00x $800M 0.61x 0.61x 0.59x 0.80x $600M 0.81x 0.
Slide 16: Credit Quality of Investments
Credit Quality of Investments Investment Performance Rating As of March 31, 2020 As of December 31, 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 Total 1
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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