Bain Capital Specialty Finance, Inc. · NYSE:BCSF
Bain Capital Specialty Finance — Q4 2024 Earnings Presentation
19 slides from Bain Capital Specialty Finance's earnings presentation, Feb 28, 2025
Slide 1: Fourth Quarter Ended December 31, 2024 Earnings Presentation
Bain Capital Specialty Finance, Inc. Fourth Quarter Ended December 31, 2024 Earnings Presentation
Slide 2: Disclaimer
DISCLAIMER PLEASE CONSIDER THE FOLLOWING 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,
Slide 3: Disclaimer
DISCLAIMER This material contains proprietary information and analysis and may not be distributed or duplicated without the express written consent of Bain Capital Credit or its affiliates. Distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use
Slide 4: Quarterly highlights
QUARTER ENDED DECEMBER 31, 2024 Quarterly highlights • Net investment income (NII) per share was $0.52, equating to an annualized NII yield on book value of 11.8%(1) • Net income per share was $0.34, equating to an annualized return on book value of 7.8%(1) • Net asset value per share as of December
Slide 5: Quarterly operating results
QUARTER ENDED DECEMBER 31, 2024 Quarterly operating results (Dollar amounts in millions, except share data) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net investment income per share $0.54 $0.53 $0.51 $0.53 $0.52 Net realized gain (loss) per share $0.31 $0.06 $(0.09) $0.04 $(0.15) Net unrealized gain (
Slide 6: Investment activity and asset composition
QUARTER ENDED DECEMBER 31, 2024 Investment activity and asset composition • New investment fundings totaled $547.8 million in 88 portfolio companies, including $317.3 million in 15 new companies and $230.5 million in 73 existing companies. • Sales and repayments totaled $505.1 million, resulting in
Slide 7: Portfolio highlights – downside management focused
QUARTER ENDED DECEMBER 31, 2024 Portfolio highlights – downside management focused The portfolio primarily consists of loans that represent the first dollar of risk in a capital structure. We focus on investing in structures that provide strong lender controls Invested Portfolio by Asset Type (Fair
Slide 8: Portfolio highlights - diversification
QUARTER ENDED DECEMBER 31, 2024 Portfolio highlights - diversification Well-diversified portfolio by company, industry and geography Portfolio Characteristics Investment Diversification Investments at fair value ($M) $2,431.2 Top 10 companies represent 20% Investment Unfunded commitments ($M) $560.9
Slide 9: Portfolio company fundamentals
QUARTER ENDED DECEMBER 31, 2024 Portfolio company fundamentals EBITDA and Net Leverage Metrics of Portfolio Companies Median EBITDA Median Net Leverage $70 6.0x 5.0x 4.9x $60 4.8x 4.8x 4.8x 4.7x 5.0x $58 $50 $53 $49 4.0x $ Millions $40 $44 $42 $40 3.0x $30 2.0x $20 $10 1.0x $- 0.0x Q3 2023 Q4 2023 Q
Slide 10: Overview of investment vehicles
QUARTER ENDED DECEMBER 31, 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 value $655.8 million $1,399.2 millio
Slide 11: Credit quality of investments
QUARTER ENDED DECEMBER 31, 2024 Credit quality of investments Non-Accrual Investments • As of December 31, 2024, five portfolio companies were on non-accrual, representing 1.3% and 0.2% of the total investment portfolio at amortized cost and fair value, respectively. Investment Performance Rating Q1
Slide 12: Yield comparison on assets and debt outstanding
QUARTER ENDED DECEMBER 31, 2024 Yield comparison on assets and debt outstanding 14.0% 13.0% 13.1% 12.8% 12.9% 12.9% 12.3% 12.1% 11.7% 12.0% 10.0% 8.0% 6.0% 5.3% 5.4% 5.3% 5.3% 5.3% 5.0% 5.1% 5.1% 5.2% 5.4% 5.3% 5.2% 4.9% 5.1% 4.0% 4.6% 4.3% 2.0% 0.0% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q
Slide 13: Quarterly operating results
QUARTER ENDED DECEMBER 31, 2024 Quarterly operating results (Dollar amounts in thousands, except share data) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Investment Income Interest income(1) $62,419 $60,977 $60,892 $60,651 $62,862 Dividend income 10,145 8,267 8,238 6,185 5,984 Other income 2,383 5,255 3,
Slide 14: Quarterly operating results (continued)
QUARTER ENDED DECEMBER 31, 2024 Quarterly operating results (continued) (Dollar amounts in thousands, except share data) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Per Share Data Net investment income $0.54 $0.53 $0.51 $0.53 $0.52 Earnings (loss) per share $0.48 $0.55 $0.45 $0.51 $0.34 Distribution per
Slide 15: Quarterly balance sheets
QUARTER ENDED DECEMBER 31, 2024 Quarterly balance sheets (Dollar amounts in thousands, except share data) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Assets Investments at fair value $2,298,343 $2,405,952 $2,237,491 $2,407,950 $2,431,189 Cash and cash equivalents (including foreign cash) 49,400 48,942 3
Slide 16: Net asset value per share bridge
QUARTER ENDED DECEMBER 31, 2024 Net asset value per share bridge $0.52 ($0.05) ($0.16) $17.76 $0.03 ($0.42) ($0.03) $17.65 Ending NAV per Share Net Investment Net Change in Net Realized Gain Net Unrealized and Q4'24 Regular Q4'24 Special Ending NAV per share 9/30/2024 Income Unrealized (Losses) on R
Slide 17: Debt summary
QUARTER ENDED DECEMBER 31, 2024 Debt summary Diverse financing structures and no debt maturities until 2026 Commitment Amount ($M) Principal Outstanding ($M) Interest Rate Maturity Date Sumitomo Credit Facility(1) $855.0 $442.7 RR+1.875% 05/18/29 March 2026 Notes 300.0 300.0 2.95% 03/10/26 October 2
Slide 18: Net investment income (NII) and dividend information
QUARTER ENDED DECEMBER 31, 2024 Net investment income (NII) and dividend information Regular Dividend Yield Special Dividend Yield NII Dividend Coverage (Regular) 158% 14% 138% 132% 131% 150% 129% 126% 121% 126% 124% 121% 107% 109% 103% 97% 100% 100% 100% 100% 100% 100% 12% 100% 10.2% 10.2% 10.2% 10
Slide 19: Quarterly distribution information
QUARTER ENDED DECEMBER 31, 2024 Quarterly distribution information Date Declared Record Date Payment Date Dividend Type Distribution Amount Per Share February 27, 2025 December 16, 2025 December 30, 2025 Special Dividend(2) $0.03 February 27, 2025 September 16, 2025 September 30, 2025 Special Divide
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