Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q3 2023 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, Nov 7, 2023
Slide 1: Third Quarter Ended September 30, 2023 Earnings Presentation
Bain Capital Specialty Finance, Inc. Third Quarter Ended September 30, 2023 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 SEPTEMBER 30, 2023 Quarterly Highlights • Net investment income (NII) per share was $0.55, equating to an annualized NII yield on book value of 12.6%(1) • Net income per share was $0.52, equating to an annualized return on book value of 12.0%(1) SUMMARY OF FINANCIAL RESULTS • Net asset
Slide 4: Selected Quarterly Financial and Portfolio Information
QUARTER ENDED SEPTEMBER 30, 2023 Selected Quarterly Financial and Portfolio Information (Dollar amounts in millions, except share data) Q3 2022(5) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net investment income per share $0.47 $0.37 $0.50 $0.60 $0.55 Net realized gain (loss) per share $0.28 $(0.01) $(0.27) $(
Slide 5: Investment Activity and Asset Composition
QUARTER ENDED SEPTEMBER 30, 2023 Investment Activity and Asset Composition • During the quarter, new investment fundings totaled $109.5 million in 40 portfolio companies, including $52.1 million in 2 new companies, $57.4 million in 38 existing companies. • Sales and repayments totaled $102.8 million
Slide 6: Portfolio Highlights – Downside Management Focused
QUARTER ENDED SEPTEMBER 30, 2023 Portfolio Highlights – Downside Management Focused The portfolio primarily consists of loans that represent the first dollar of risk in a capital structure. We focus on investing in structures that provide strong lender controls. TOTAL INVESTMENTS AS OF QUARTER INVES
Slide 7: Portfolio Highlights - Diversification
QUARTER ENDED SEPTEMBER 30, 2023 Portfolio Highlights - Diversification Well-diversified portfolio by company, industry and geography PORTFOLIO CHARACTERISTICS INVESTMENT DIVERSIFICATION Investments at fair value ($M) $2,390.2 Investment Top 10 companies represent 22% of Unfunded commitments ($M) $2
Slide 8: Portfolio Company Fundamentals
QUARTER ENDED SEPTEMBER 30, 2023 Portfolio Company Fundamentals EBITDA AND NET LEVERAGE METRICS OF PORTFOLIO COMPANIES Median EBITDA Median Net Leverage $70 6.0x 5.6x 5.1x 5.1x 5.0x $60 4.9x 5.0x $58 $58 $56 $50 4.0x $47 $46 $40 $ Millions 3.0x $30 2.0x $20 1.0x $10 $- 0.0x Q3 2022 Q4 2022 Q1 2023 Q
Slide 9: Overview of Investment Vehicles
QUARTER ENDED SEPTEMBER 30, 2023 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 $661.6 million $826.5 million VALU
Slide 10: Credit Quality of Investments
QUARTER ENDED SEPTEMBER 30, 2023 Credit Quality of Investments Non-Accrual Investments • As of September 30, 2023, three portfolio companies were on non-accrual, representing 1.5% and 1.0% of the total investment portfolio at amortized cost and fair value, respectively. Investment Performance Rating
Slide 11: Yield Comparison on Assets and Debt Outstanding
QUARTER ENDED SEPTEMBER 30, 2023 Yield Comparison on Assets and Debt Outstanding 14.0% 12.8% 12.9% 12.3% 12.0% 11.4% 10.2% 10.0% 8.5% 7.9% 8.0% 7.6% 6.0% 5.3% 5.4% 5.0% 4.6% 5.2% 5.4% 3.7% 4.9% 4.0% 3.2% 2.9% 2.9% 4.3% 3.6% 2.0% 1.0% 2.3% 0.2% 0.0% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2
Slide 12: Quarterly Operating Results
QUARTER ENDED SEPTEMBER 30, 2023 Quarterly Operating Results (Dollar amounts in thousands, except share data) Q3 2022(2) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Investment Income Interest income(1) $48,141 $52,920 $61,096 $65,065 $62,814 Dividend income 6,345 6,834 8,393 8,728 8,568 Other income 4,329 2,607
Slide 13: Quarterly Balance Sheets
QUARTER ENDED SEPTEMBER 30, 2023 Quarterly Balance Sheets (Dollar amounts in thousands, except share data) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Assets Investments at fair value $2,293,522 $2,386,977 $2,415,377 $2,385,272 $2,390,198 Cash and cash equivalents (including foreign cash) 44,173 59,780
Slide 14: Net Asset Value Per Share Bridge
QUARTER ENDED SEPTEMBER 30, 2023 Net Asset Value Per Share Bridge $0.75 $(0.79) $0.55 $0.01 $(0.42) $17.44 $17.54 Beginning NAV per Net Investment Net Change in Net Realized Gain Net Unrealized and Dividends Declared Ending NAV per Share Share 6/30/23 Income Unrealized (Losses) on Realized Activity
Slide 15: Debt Summary
QUARTER ENDED SEPTEMBER 30, 2023 Debt Summary Diverse financing structures and no debt maturities until 2026 Commitment Amount ($M) Principal Outstanding ($M) Interest Rate Maturity Date Sumitomo Credit Facility(1) $665.0 $426.0 RR+1.875% 12/24/26 March 2026 Notes 300.0 300.0 2.95% 03/10/26 October
Slide 16: Net Investment Income (NII) and Dividend Information
QUARTER ENDED SEPTEMBER 30, 2023 Net Investment Income (NII) and Dividend Information Dividend Yield on Book Value NII Per Share Dividend Coverage 158% 131% 138% 132% 150% 11% 121% 107% 109% 103% 100% 100% 100% 97% 100% 100% 100% 100% 100% 100% 100% 10% 9.6% 8.9% 50% 9% 8.8% 8.7% 8.5% 8.4% 8.3% 8.3%
Slide 17: Quarterly Distribution Information
QUARTER ENDED SEPTEMBER 30, 2023 Quarterly Distribution Information Date Declared Record Date Payment Date Distribution Amount Per Share November 6, 2023 December 29, 2023 January 31, 2024 $0.42 August 8, 2023 September 29, 2023 October 31, 2023 $0.42 May 9, 2023 June 30, 2023 July 31, 2023 $0.38 Fe
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