Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q3 2024 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, Nov 6, 2024
Slide 1: Third Quarter Ended September 30, 2024 Earnings Presentation
Bain Capital Specialty Finance, Inc. Third Quarter Ended September 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 SEPTEMBER 30, 2024 Quarterly Highlights • Net investment income (NII) per share was $0.53, equating to an annualized NII yield on book value of 11.9%(1) • Net income per share was $0.51, equating to an annualized return on book value of 11.5%(1) SUMMARY OF FINANCIAL • Net asset value p
Slide 4: Selected Quarterly Financial and Portfolio Information
QUARTER ENDED SEPTEMBER 30, 2024 Selected Quarterly Financial and Portfolio Information (Dollar amounts in millions, except share data) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net investment income per share $0.55 $0.54 $0.53 $0.51 $0.53 Net realized gain (loss) per share $(0.80) $0.31 $0.06 $(0.09)
Slide 5: Investment Activity and Asset Composition
QUARTER ENDED SEPTEMBER 30, 2024 Investment Activity and Asset Composition • During the quarter, new investment fundings totaled $413.1 million in 83 portfolio companies, including $330.9 million in 16 new companies and $82.2 million in 67 existing companies. • Sales and repayments totaled $248.0 mi
Slide 6: Portfolio Highlights – Downside Management Focused
QUARTER ENDED SEPTEMBER 30, 2024 Portfolio Highlights – Downside Management Focused The portfolio primarily consists of loans that represent the first dollar of risk in a capital structure. We focus on investing in structures that provide strong lender controls. TOTAL INVESTMENTS INVESTED AS OF QUAR
Slide 7: Portfolio Highlights - Diversification
QUARTER ENDED SEPTEMBER 30, 2024 Portfolio Highlights - Diversification Well-diversified portfolio by company, industry and geography PORTFOLIO CHARACTERISTICS INVESTMENT DIVERSIFICATION Investments at fair value ($M) $2,408.0 Top 10 companies represent 20% of Unfunded commitments ($M) $432.2 Invest
Slide 8: Portfolio Company Fundamentals
QUARTER ENDED SEPTEMBER 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 4.8x 4.9x 4.8x 4.7x 5.0x $58 $58 $50 $53 $49 4.0x $44 $40 $42 $ Millions 3.0x $30 2.0x $20 1.0x $10 $- 0.0x Q2 2023 Q3 2023
Slide 9: Overview of Investment Vehicles
QUARTER ENDED SEPTEMBER 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 $691.7 million $1,132.9 million VA
Slide 10: Credit Quality of Investments
QUARTER ENDED SEPTEMBER 30, 2024 Credit Quality of Investments Non-Accrual Investments • As of September 30, 2024, five portfolio companies were on non-accrual, representing 1.9% and 1.1% 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, 2024 Yield Comparison on Assets and Debt Outstanding 14.0% 12.9% 13.0% 12.9% 13.1% 12.8% 12.3% 12.1% 12.0% 11.4% 10.0% 8.0% 6.0% 5.3% 5.4% 5.3% 5.3% 5.0% 5.3% 5.1% 4.6% 5.2% 5.4% 5.3% 5.2% 4.9% 5.1% 4.0% 4.6% 4.3% 2.0% 0.0% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Slide 12: Quarterly Operating Results
QUARTER ENDED SEPTEMBER 30, 2024 Quarterly Operating Results (Dollar amounts in thousands, except share data) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Investment Income Interest income(1) $62,814 $62,419 $60,977 $60,892 $60,651 Dividend income 8,568 10,145 8,267 8,238 6,185 Other income 1,008 2,383 5
Slide 13: Quarterly Balance Sheets
QUARTER ENDED SEPTEMBER 30, 2024 Quarterly Balance Sheets (Dollar amounts in thousands, except share data) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Assets Investments at fair value $2,390,198 $2,298,343 $2,405,952 $2,237,491 $2,407,950 Cash and cash equivalents (including foreign cash) 79,498 49,400
Slide 14: Net Asset Value Per Share Bridge
QUARTER ENDED SEPTEMBER 30, 2024 Net Asset Value Per Share Bridge $0.53 $(0.06) $0.04 $0.00 $(0.42) $17.70 $(0.03) $17.76 Ending NAV per Net Investment Net Change in Net Realized Gain Net Unrealized and Q3'24 Regular Q3'24 Special Ending NAV per Share 6/30/2024 Income Unrealized (Losses) on Realized
Slide 15: Debt Summary
QUARTER ENDED SEPTEMBER 30, 2024 Debt Summary Diverse financing structures and no debt maturities until 2026 Commitment Amount ($M) Principal Outstanding ($M) Interest Rate Maturity Date Sumitomo Credit Facility(1) $855.0 $353.7 RR+1.875% 05/18/29 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, 2024 Net Investment Income (NII) and Dividend Information Regular Dividend Yield Special Dividend Yield NII Dividend Coverage (Regular) 158% 14% 138% 132% 131% 129% 126% 150% 121% 121% 126% 107% 109% 103% 12% 100% 97% 100% 100% 100% 100% 100% 100% 100% 10.2% 10.2% 10.2% 1
Slide 17: Quarterly Distribution Information
QUARTER ENDED SEPTEMBER 30, 2024 Quarterly Distribution Information Date Declared Record Date Payment Date Dividend Type Distribution Amount Per Share November 6, 2024 December 31, 2024 January 31, 2025 Regular Dividend $0.42 May 6, 2024 December 31, 2024 January 31, 2025 Special Dividend(1) $0.03 M
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