Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q3 2022 Earnings Presentation
17 slides from Bain Capital Specialty Finance's earnings presentation, Nov 10, 2022
Slide 1: Bain Capital Specialty Finance, Inc. Third Quarter 2022 Earnings Presentation
Bain Capital Specialty Finance, Inc. Third Quarter 2022 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: $46.9 million. Median leverage through investment: 5.6x Investment Focus • Highly diversified portfolio of inv
Slide 5: Portfolio Highlights
Portfolio Highlights We have invested approximately $6.2 billion in aggregate principal since inception, driven by a robust origination pipeline and global sourcing capabilities. Portfolio 105 106 115 122 130 $2,294M Companies 130 July 2021 October 2021 February 2022 September 2022 Current Portfolio
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) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022(5) Net investment income per share $0.34 $0.34 $0.34 $0.41 $0.47 N
Slide 7: Selected Quarterly Financial Information
Selected Quarterly Financial Information (Dollar amounts in millions) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Originations and Net Investment Activity: Investment Fundings $286.4 $291.1 $371.0 $481.9 $433.0 Sales and Repayments 254.9 369.5 521.0 332.4 396.5 Net Investment Activity 31.5 (78.4) (150.0
Slide 8: Quarterly Balance Sheets (Quarter Ended September 30, 2022)
Quarterly Balance Sheets (Quarter Ended September 30, 2022) $ in '000s Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Assets Investments at fair value $ 2,356,671 $ 2,289,105 $ 2,154,672 $ 2,287,038 $ 2,293,522 Cash and cash equivalents 34,277 87,443 55,963 38,013 32,343 Foreign cash 829 29,979 24,844 5,00
Slide 9: Quarterly Operating Results (Quarter Ended September 30, 2022)
Quarterly Operating Results (Quarter Ended September 30, 2022) $ in '000s Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022(2) Interest income (1) $ 45,726 $ 45,352 $ 41,945 $ 38,304 $ 48,141 Dividend income 2,638 5,515 3,601 6,370 6,340 Other income 1,181 661 465 7,690 4,329 Total Investment Income $ 49,545
Slide 10: Net Asset Value Bridge – Q3 2022
Net Asset Value Bridge – Q3 2022 $17.15 $0.47 $0.05 $0.03 $16.98 ($0.37) ($0.01) ($0.34) Beginning NAV Net Investment Net Change in Net Realized Gain Foreign Currency Net Realized Loss Dividends Ending NAV per per Share 6/30/22 Income Unrealized (Losses) on Translation and on Declared Share 9/30/22
Slide 11: Portfolio Overview
Portfolio Overview The fair value of investments for BCSF as of September 30, 2022, is $2,293.5 million. Fair Value of Investments (in millions) First Lien Second Lien Investment Vehicles Structured Products Subordinated Debt Equity & Warrants (1) $3,000M $2,460M $2,484M $2,500M $2,336M $2,320M $2,3
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 Non-Sponsored Investment Vehicle
Slide 13: BCSF Portfolio Overview
BCSF Portfolio Overview Portfolio Characteristics Industry FIRE: Finance 2.1% Investments at Fair Value $2,293.5M Aerospace & Retail Investment Defense Vehicles 2.3% 16.6% Other 12.3% 15.0% Unfunded Commitments $307.3M FIRE: Insurance 2.7% High Tech Consumer Industries Yield at Fair Value of Investm
Slide 14: Portfolio Yield
Portfolio Yield Yield Analysis Weighted Average Portfolio Yield at Amortized Cost (1) (2) Weighted Average Portfolio Interest Rate at Amortized Cost Weighted Average Stated Interest Rate on Debt Outstanding 3 Month London Interbank Offer Rate 12.0% 10.2% 10.0% 10.0% 8.5% 7.9% 8.0% 7.6% 7.5% 7.5% 7.6
Slide 15: Debt Summary
Debt Summary Outstanding Debt and Debt to Equity Ratio (1) (2) Outstanding Debt Gross Leverage Net Leverage 1.45x $1,600M 1.37x 1.30x 1.60x 1.26x 1.20x 1.23x 1.25x $1,400M 1.40x 1.14x $1,200M 0.99x 1.20x 1.33x 1.30x $1,000M 1.15x 1.15x 1.20x 1.00x 1.12x 1.12x 1.07x $800M 0.80x 0.89x $600M 0.60x $400
Slide 16: Credit Quality of Investments
Credit Quality of Investments Investment Performance Rating As of September 30, 2022 As of June 30, 2022 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 March 28, 2018 March 28, 2018 May 17, 2018 $0.34 June 28, 2018 June 28, 2018 August 10, 2018 $0.36 September 26, 2018 September 26, 2018 October 19, 2018 $0.41 December 19, 2018 December 31, 2018 January 14, 2
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