Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q1 2019 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, May 10, 2019
Slide 1: Bain Capital Specialty Finance, Inc. First Quarter 2019 Earnings Presentation
Bain Capital Specialty Finance, Inc. First 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: $68.5 million. Median leverage through investment: 4.9x Focus • Highly diversified portfolio of inv
Slide 5: Portfolio Highlights
Portfolio Highlights We have invested approximately $2.5 billion in aggregate principal since inception, driven by a robust origination pipeline and global sourcing capabilities. Portfolio 12 85 113 132 133 Companies $1,830M 133 Current Portfolio Size Portfolio Companies Feb 2019 Dec 2016 Nov 2017 S
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 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Net investment income per share $0.30 $0.38 $0.33 $0.41 $0.41 Net
Slide 7: Selected Quarterly Financial Information
Selected Quarterly Financial Information (Dollar amounts in millions, except share data) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Originations and Net Investment Activity: Investment Fundings $143.7 $229.7 $343.4 $451.8 $275.5 Sales and Repayments 65.0 62.5 65.1 42.7 192.2 Net Investment Activity 78.
Slide 8: Quarterly Balance Sheets (Quarter Ended March 31, 2019)
Quarterly Balance Sheets (Quarter Ended March 31, 2019) $ in '000s Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Assets Investments at fair value $ 915,368 $ 1,069,136 $ 1,351,443 $ 1,727,806 $ 1,829,940 Cash and cash equivalents 120,425 125,786 151,070 14,693 79,140 Foreign cash 2,316 15,204 1,666 591 1,
Slide 9: Quarterly Operating Results (Quarter Ended March 31, 2019)
Quarterly Operating Results (Quarter Ended March 31, 2019) For Three Months Ended $ in '000s Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Interest income $ 12,637 $ 15,898 $ 20,367 $ 24,461 $ 30,495 Dividend income 4,708 5,433 6,204 9,041 9,373 Other income 114 94 91 246 22 Total Investment Income $ 17,4
Slide 10: Net Asset Value Bridge – Q1 2019
Net Asset Value Bridge – Q1 2019 $0.05 $0.30 $(0.41) $19.81 $0.41 $19.46 Beginning NAV Net Investment Net Change in Net Realized Stockholder Ending NAV per share 12/31/2018 Income Unrealized Gains (Losses) Distribution per share 3/31/2019 Appreciation (Depreciation) Note: Net Asset Value per share i
Slide 11: Portfolio Overview
Portfolio Overview The Fair Value of Investments for BCSF as of March 31, 2019 is $1,829.9 million. Fair Value of Investments (in millions) $2,000M $1,830M $1,800M $1,728M $1,600M $1,400M $1,351M $1,200M $1,069M $1,000M $915M $832M $800M $600M $483M $418M $400M $195M $200M $- Q1 2017 Q2 2017 Q3 2017
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 Preferred Subord
Slide 13: BCSF Portfolio Overview
BCSF Portfolio Overview Portfolio Characteristics Industry Retail Energy: Oil & Other Gas 17% Investment 2% 2% Vehicle Investments at Fair Value $1,829.9M Construction & 18% Building 2% Unfunded Commitments $122.5M Beverage, Food & High Tech Industries Tobacco… 11% Capital Gross Yield at Fair Value
Slide 14: Portfolio Yield
Portfolio Yield Yield Analysis 10.0% 8.7% 8.7% 8.8% 9.0% (1) 8.6% 8.5% 8.2% 7.7% 7.8% 8.0% 7.6% (1) 7.3% 7.4% 6.8% 7.0% 6.5% 6.6% 6.4% 6.0% 5.0% 4.9% 4.0% 4.3% 4.5% 4.2% 3.8% 3.0% 3.5% 2.8% 2.0% 2.5% 2.4% 2.6% 2.3% 2.3% 2.3% 2.0% 1.7% 1.0% 1.3% 1.3% 1.1% 0.0% Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018
Slide 15: Debt Summary
Debt Summary Outstanding Debt and Debt to Equity Ratio (1) Outstanding Debt Debt to Equity Ratio $1,000M 0.92x 0.92x 1.00x $900M 0.74x 0.75x 0.90x $800M 0.80x 0.64x $700M 0.61x 0.70x $600M 0.60x $500M 0.50x $400M 0.40x $300M 0.20x 0.30x $941M $466M $407M $460M $656M $756M $200M 0.08x 0.02x 0.20x $10
Slide 16: Credit Quality of Investments
Credit Quality of Investments As of March 31, 2019 there were no investments on non-accrual status. Investment Performance Rating As of March 31, 2019 As of December 31, 2018 Investment Fair Value Percentage of Number of Percentage of Fair Value Percentage of Number of Percentage of Performance Rati
Slide 17: Quarterly Distribution Information
Quarterly Distribution Information Date Declared Record Date Payment Date Amount Per Share Total Distributions December 22, 2016 December 22, 2016 January 17, 2017 $0.015 $82,363 May 9, 2017 May 12, 2017 May 19, 2017 $0.07 $1,174,052 June 21, 2017 June 29, 2017 August 11, 2017 $0.11 $2,739,972 Septe
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