Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q2 2020 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, Aug 6, 2020
Slide 1: Bain Capital Specialty Finance, Inc. Second Quarter 2020 Earnings Presentation
Bain Capital Specialty Finance, Inc. Second 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: $46.2 million. Median leverage through investment: 5.3x Investment Focus • Highly diversified portfolio of inv
Slide 5: Portfolio Highlights
Portfolio Highlights We have invested approximately $3.7 billion in aggregate principal since inception, driven by a robust origination pipeline and global sourcing capabilities. Portfolio 123 126 114 108 109 Companies $2,476M 109 Current Portfolio Size Portfolio Companies March 2020 June 2020 April
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) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Net investment income per share $0.41 $0.41 $0.41 $0.44 $0.37 Net
Slide 7: Selected Quarterly Financial Information
Selected Quarterly Financial Information (Dollar amounts in millions) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Originations and Net Investment Activity: Investment Fundings $403.1(1) $274.8 $341.4 $276.1 $49.2 Sales and Repayments 378.1(1) 184.2 333.5 180.7 67.1 Net Investment Activity 25.0 90.6 7.9
Slide 8: Quarterly Balance Sheets (Quarter Ended June 30, 2020)
Quarterly Balance Sheets (Quarter Ended June 30, 2020) $ in '000s Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Assets Investments at fair value $ 2,427,415 $ 2,506,734 $ 2,527,055 $ 2,484,533 $ 2,475,987 Cash and cash equivalents 100,358 70,637 36,531 55,128 76,364 Foreign cash 599 992 810 632 305 Restri
Slide 9: Quarterly Operating Results (Quarter Ended June 30, 2020)
Quarterly Operating Results (Quarter Ended June 30, 2020) For Three Months Ended $ in '000s Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Interest income $ 45,073 $ 51,491 $ 53,335 $ 48,643 $ 44,885 Dividend income 5,152 961 1,254 2,413 2,927 Other income 373 236 178 440 59 Total Investment Income $ 50,59
Slide 10: Net Asset Value Bridge – Q2 2020
Net Asset Value Bridge – Q2 2020 $17.29 $(1.47) $(0.06) $0.09 $15.82 $(0.34) $(0.07) $15.81 $0.37 $15.82 (2) Beginning Net Impact of Pro Forma Net Net Change in Net Realized Dividends Other Ending NAV NAV per Issuance of Adjusted NAV Investment Unrealized Gains Declared per Share Share 3/31/20 Commo
Slide 11: Portfolio Overview
Portfolio Overview The Fair Value of Investments for BCSF as of June 30, 2020 is $2,476.0 million. Fair Value of Investments (in millions) $3,000M $2,507M $2,527M $2,485M $2,476M $2,500M $2,427M $2,000M $1,830M $1,728M $1,500M $1,351M $1,069M $1,000M $500M $- Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019
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 5% Preferred Sub
Slide 13: BCSF Portfolio Overview
BCSF Portfolio Overview Portfolio Characteristics Industry Media: Diversified & Production 2.0% Investments at Fair Value $2,476.0M Transportation: Consumer High Tech Aerospace & 2.2% Industries Defense 15.3% 12.5% Consumer Goods: Other Durable 14.6% Unfunded Commitments $119.1M 2.3% FIRE: Insurance
Slide 14: Portfolio Yield
Portfolio Yield Yield Analysis 10.0% 8.8% 8.9% 8.9% 9.0% 8.6% 8.9% 8.1% 7.9% 8.6% 8.7% 8.8% 7.8% 8.0% 7.6% 8.1% 7.8% 7.8% 6.9% 7.0% 7.3% 6.0% 6.6% 5.0% 4.9% 4.9% 4.7% 4.0% 4.3% 4.5% 4.5% 4.2% 4.1% 3.7% 3.0% 2.8% 2.0% 2.4% 2.6% 2.3% 2.3% 2.1% 1.9% 1.0% 1.5% 0.3% 0.0% Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q
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 1.80x $1,600M $1,400M 1.78x 1.60x $1,200M 1.40x 1.48x 1.48x 1.42x 0.90x 1.35x 1.20x $1,000M 0.68x 0.64x 1.00x $800M 0.59x 0.80x $600M 0.81x 0.60x $4
Slide 16: Credit Quality of Investments
Credit Quality of Investments Investment Performance Rating As of June 30, 2020 As of March 31, 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 Total 1 $31
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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