Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Bain Capital Specialty Finance, Inc. Announces September 30, 2021 Financial Results and Declares Fourth Quarter 2021 Dividend of $0.34 per Share By: Bain Capital Specialty Finance, Inc. via Business Wire November 03, 2021 at 17:01 PM EDT Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the “Company”, “our” or “we”) today announced financial results for the third quarter ended September 30, 2021, and that its Board of Directors has declared a dividend of $0.34 per share for the fourth quarter of 2021. “Our positive third quarter earnings results were driven by higher interest income and continued stable credit quality across our diversified portfolio,” said Michael Ewald, Chief Executive Officer of BCSF. “We also had a strong quarter of new origination activity, demonstrating the strength of Bain Capital Credit’s Private Credit Group in sourcing compelling new investment opportunities in the middle market.” QUARTERLY HIGHLIGHTS Net investment income per share was $0.34, as compared to $0.34 for the quarter ended June 30, 2021; Net income per share was $0.36, as compared to $0.66 for the quarter ended June 30, 2021; Net asset value per share as of September 30, 2021 was $17.03, as compared to $17.01 as of June 30, 2021; Gross and net investment fundings were $286.4 million and $31.5 million, respectively. Ending debt-to-equity (net of cash) ratio was 1.15x, as compared to 1.12x as of June 30, 2021; No investments were on non-accrual status as of September 30, 2021; Subsequent to quarter-end, the Company’s Board of Directors declared a dividend of $0.34 per share for the fourth quarter of 2021 payable to stockholders of record as of December 31, 2021(1); and On October 13, 2021, the Company closed an offering of $300.0 million aggregate principal amount of 2.55% unsecured notes due 2026. The net proceeds of the offering were primarily used to pay down debt under the Company’s revolving credit facilities. SELECTED FINANCIAL HIGHLIGHTS ($ in millions, unless otherwise noted) Q3 2021 Q2 2021 Net investment income per share $0.34 $0.34 Net investment income $21.8 $21.9 Earnings per share $0.36 $0.66 Dividends per share declared and payable $0.34 $0.34 ($ in millions, unless otherwise noted) As of September 30, 2021 As of June 30, 2021 Total fair value of investments $2,356.7 $2,319.5 Total assets $2,498.7 $2,449.3 Total net assets $1,099.7 $1,098.3 Net asset value per share $17.03 $17.01 PORTFOLIO AND INVESTMENT ACTIVITY For the three months ended September 30, 2021, the Company invested $286.4 million in 39 portfolio companies, including $229.1 million in 10 new companies, $46.2 million in 28 existing companies and $11.1 million in the ISLP. The Company had $254.9 million of principal repayments and sales in the quarter. On a net basis, our investments in the quarter totaled $31.5 million. For the three months ended September 30, 2021, the ISLP invested $63.5 million in five portfolio companies. The ISLP had $62.3 million of principal repayments and sales in the quarter. On a net basis, ISLP’s investments in the quarter totaled $1.2 million. Investment Activity for the Quarter Ended September 30, 2021: ($ in millions) Q3 2021 Q2 2021 Investment Fundings $286.4 $213.2 Sales and Repayments $254.9 $257.7 Net Investment Activity $31.5 $(44.5) As of September 30, 2021, the Company’s investment portfolio had a fair value of $2,356.7 million, comprised of investments in 105 portfolio companies operating across 29 different industries. Investment Portfolio at Fair Value as of September 30, 2021: Investment Type $ in Millions % of Total First Lien Senior Secured Loans $1,887.2 80.1% Second Lien Senior Secured Loans 116.2 4.9 Subordinated Debt 16.8 0.7 Equity Interest 160.9 6.8 Preferred Equity 32.2 1.4 Warrants 0.1 0.0 Investment Vehicles 143.3 6.1 Subordinated Note in ISLP 105.9 4.5 Equity Interest in ISLP 37.4 1.6 Total $2,356.7 100.0% As of September 30, 2021, the weighted average yield on the investment portfolio at amortized cost and fair value were 7.5% and 7.6%, respectively, as compared to 7.5% and 7.7%, respectively, as of June 30, 2021.(2) 98.9% of the Company’s debt investments at fair value were in floating rate securities. As of September 30, 2021, no investments were on non-accrual status. As of September 30, 2021, ISLP’s investment portfolio had an aggregate fair value of $395.8 million, comprised of investments in 23 portfolio companies operating across 10 different industries. The investment portfolio on a fair value basis was comprised of 96.7% first lien senior secured loans and 3.3% second lien senior secured loans. 100% of ISLP’s debt investments at fair value were in floating rate securities. RESULTS OF OPERATIONS For the three months ended September 30, 2021 and June 30, 2021, total investment income was $49.5 million and $46.5 million, respectively. The increase in investment income was primarily due to an increase in prepayment related income and other income. Total expenses (before taxes), net of fee waivers for the three months ended September 30, 2021 and June 30, 2021 were $27.8 million and $24.6 million, respectively. The increase was primarily driven by an increase in investment advisory fees as a result of no fee waivers by the Advisor given the Company’s net investment income coverage of the dividend during the quarter ended September 30, 2021. Net investment income for the three months ended September 30, 2021 and June 30, 2021 was $21.8 million or $0.34 per share and $21.9 million or $0.34 per share, respectively. During the three months ended September 30, 2021, the Company had net realized and unrealized gains of $1.6 million. Net increase in net assets resulting from operations for the three months ended September 30, 2021 was $23.3 million, or $0.36 per share. CAPITAL AND LIQUIDITY As of September 30, 2021, the Company had total principal debt outstanding of $1,356.7 million, including $179.7 million outstanding in the Company’s credit facility with JPMorgan Chase Bank, National Association (the “JPM Credit Facility”), $365.7 million outstanding of the notes issued through BCC Middle Market CLO 2018-1 LLC, $398.8 million outstanding of the debt issued through BCC Middle Market CLO 2019-1 LLC, $112.5 million outstanding in the Company’s senior unsecured notes due 2023 and $300.0 million outstanding in the Company’s senior unsecured notes due 2026. For the three months ended September 30, 2021, the weighted average interest rate on debt outstanding was 3.0%, as compared to 3.2% for the three months ended June 30, 2021. As of September 30, 2021, the Company had cash and cash equivalents (including foreign cash) of $35.1 million, $270.3 million of capacity under its JPM Credit Facility and $50.0 million of capacity under the Revolving Advisor Loan. As of September 30, 2021, the Company had $225.3 million of undrawn investment commitments. As of September 30, 2021, the Company’s debt-to-equity and debt-to-equity (net of cash) ratios were 1.23x and 1.15x, respectively, as compared to 1.20x and 1.12x, respectively, as of June 30, 2021. As of September 30, 2021, the Company was in compliance with all terms under its secured credit facilities. During the quarter, the Company repurchased $37.5 million of its senior 8.50% unsecured notes due 2023 at a total cost of $39.5 million. Endnotes (1) The fourth quarter dividend is payable on January 28, 2022 to holders of record as of December 31, 2021. (2) The weighted average yield is computed as (a) the annual stated interest rate or yield earned on the relevant accruing debt and other income producing securities plus amortization of fees and discounts on the performing debt and other income producing investments, divided by (b) the total relevant investments at amortized cost. The weighted average yield does not represent the total return to our stockholders. CONFERENCE CALL INFORMATION A conference call to discuss the Company’s financial results will be held live at 8:00 a.m. Eastern Time on November 4, 2021. Please visit BCSF’s webcast link located on the Events & Presentations page of the Investor Resources section of BCSF’s website at http://www.baincapitalbdc.com for a slide presentation that complements the Earnings Conference Call. Participants are also invited to access the conference call by dialing one of the following numbers: Domestic: 1-800-458-4121 International: 1-323-794-2597 Conference ID: 7785735 All participants will need to reference “Bain Capital Specialty Finance - Third Quarter Ended September 30, 2021 Earnings Conference Call” once connected with the operator. All participants are asked to dial in 10-15 minutes prior to the call. Replay Information: An archived replay will be available approximately three hours after the conference call concludes through November 11, 2021 via a webcast link located on the Investor Resources section of BCSF’s website, and via the dial-in numbers listed below: Domestic: 1-844-512-2921 International: 1-412-317-6671 Conference ID: 7785735# Bain Capital Specialty Finance, Inc. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share data) As of As of September 30, 2021 December 31, 2020 (Unaudited) Assets Investments at fair value: Non-controlled/non-affiliate investments (amortized cost of $2,023,858 and $2,281,809, respectively) $ 2,005,635 $ 2,261,461 Non-controlled/affiliate investment (amortized cost of $99,438 and $93,089, respectively) 107,576 92,915 Controlled affiliate investment (amortized cost of $256,766 and $147,841, respectively) 243,460 130,112 Cash and cash equivalents 34,277 53,704 Foreign cash (cost of $1,033 and $976, respectively) 829 972 Restricted cash and cash equivalents 57,802 27,026 Collateral on forward currency exchange contracts 4,564 4,934 Deferred financing costs 864 3,131 Interest receivable on investments 20,943 15,720 Receivable for sales and paydowns of investments 3,850 5,928 Prepaid Insurance 376 - Unrealized appreciation on forward currency exchange contracts 4,071 - Dividend receivable 14,417 7,589 Total Assets $ 2,498,664 $ 2,603,492 Liabilities Debt (net of unamortized debt issuance costs of $10,500 and $7,147, respectively) $ 1,346,183 $ 1,458,360 Interest payable 8,471 8,223 Payable for investments purchased 5,400 10,991 Unrealized depreciation on forward currency exchange contracts - 22,614 Base management fee payable 8,776 6,289 Incentive fee payable 4,531 3,799 Accounts payable and accrued expenses 3,673 3,261 Distributions payable 21,951 21,951 Total Liabilities 1,398,985 1,535,488 Commitments and Contingencies Net Assets Preferred stock, $0.001 par value per share, 10,000,000,000 shares authorized, none issued and outstandingas of September 30, 2021 and December 31, 2020, respectively $ - $ - Common stock, par value $0.001 per share, 100,000,000,000 and 100,000,000,000 shares authorized,64,562,265 and 64,562,265 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively 65 65 Paid in capital in excess of par value 1,166,453 1,166,453 Total distributable earnings (loss) (66,839) (98,514) Total Net Assets 1,099,679 1,068,004 Total Liabilities and Total Net assets $ 2,498,664 $ 2,603,492 Net asset value per share $ 17.03 $ 16.54 Bain Capital Specialty Finance, Inc. Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) For the Three Months Ended September 30 For the Three Months Ended September 30 For the Nine Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Income Investment income from non-controlled/non-affiliate investments: Interest from investments $ 37,821 $ 43,558 $ 114,439 $ 135,576 Dividend income 38 34 38 748 PIK income 1,046 - 3,108 - Other income 1,181 607 5,512 1,106 Total investment income from non-controlled/non-affiliate investments 40,086 44,199 123,097 137,430 Investment income from non-controlled/affiliate investments: Interest from investments 455 56 1,355 56 PIK income 1,421 - 4,173 - Total investment income from non-controlled/affiliate investments 1,876 56 5,528 56 Investment income from controlled affiliate investments: Interest from investments 4,983 715 9,192 2,225 Dividend income 2,600 1,847 7,564 6,473 PIK income - - 483 - Total investment income from controlled affiliate investments 7,583 2,562 17,239 8,698 Total investment income 49,545 46,817 145,864 146,184 Expenses Interest and debt financing expenses 12,265 14,426 37,115 49,614 Base management fee 8,776 8,885 26,096 26,250 Incentive fee 4,531 - 19,301 - Professional fees 581 296 2,254 1,909 Directors fees 186 209 529 555 Other general and administrative expenses 1,445 1,545 4,075 3,878 Total expenses before fee waivers 27,784 25,361 89,370 82,206 Base management fee waiver - - (4,837) - Incentive fee waiver - - (4,519) - Total expenses, net of fee waivers 27,784 25,361 80,014 82,206 Net investment income 21,761 21,456 65,850 63,978 Net realized and unrealized gains (losses) Net realized gain (loss) on non-controlled/non-affiliate investments (668) (24,263) 22,589 (34,667) Net realized loss on controlled affiliate investments (621) - (3,858) - Net realized gain (loss) on foreign currency transactions (72) (19) (2,093) (368) Net realized gain (loss) on forward currency exchange contracts (2,085) (130) (23,773) 6,472 Net realized loss on extinguishment of debt (2,546) - (2,546) - Net change in unrealized appreciation (depreciation) on foreign currency translation (508) 194 (186) 89 Net change in unrealized appreciation (depreciation) on forward currency exchange contracts 6,080 (11,177) 26,685 (7,921) Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliate investments 922 73,892 2,125 (45,077) Net change in unrealized appreciation on non-controlled/affiliate investments 2,905 1,689 8,312 4,697 Net change in unrealized appreciation (depreciation) on controlled affiliate investments (1,826) (10,185) 4,423 (18,421) Total net gains (losses) 1,581 30,001 31,678 (95,196) Net increase (decrease) in net assets resulting from operations $ 23,342 $ 51,457 $ 97,528 $ (31,218) Basic and diluted net investment income per common share $ 0.34 $ 0.33 $ 1.02 $ 1.13 Basic and diluted increase (decrease) in net assets resulting from operations per common share $ 0.36 $ 0.80 $ 1.51 $ (0.55) Basic and diluted weighted average common shares outstanding 64,562,265 64,562,265 64,562,265 56,692,267 About Bain Capital Specialty Finance, Inc. Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. BCSF is managed by BCSF Advisors, LP, an SEC-registered investment adviser and a subsidiary of Bain Capital Credit, LP. Since commencing investment operations on October 13, 2016, and through September 30, 2021, BCSF has invested approximately $4.7 billion in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. BCSF’s investment objective is to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. BCSF has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. Forward-Looking Statements This letter may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this letter may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this letter. View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006276/en/Contacts Investor Contact: Katherine Schneider Tel. +1 212 803 9613 investors@baincapitalbdc.com Media Contact: Charlyn Lusk Tel. +1 646 502 3549 clusk@stantonprm.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Bain Capital Specialty Finance, Inc. Announces September 30, 2021 Financial Results and Declares Fourth Quarter 2021 Dividend of $0.34 per Share By: Bain Capital Specialty Finance, Inc. via Business Wire November 03, 2021 at 17:01 PM EDT Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the “Company”, “our” or “we”) today announced financial results for the third quarter ended September 30, 2021, and that its Board of Directors has declared a dividend of $0.34 per share for the fourth quarter of 2021. “Our positive third quarter earnings results were driven by higher interest income and continued stable credit quality across our diversified portfolio,” said Michael Ewald, Chief Executive Officer of BCSF. “We also had a strong quarter of new origination activity, demonstrating the strength of Bain Capital Credit’s Private Credit Group in sourcing compelling new investment opportunities in the middle market.” QUARTERLY HIGHLIGHTS Net investment income per share was $0.34, as compared to $0.34 for the quarter ended June 30, 2021; Net income per share was $0.36, as compared to $0.66 for the quarter ended June 30, 2021; Net asset value per share as of September 30, 2021 was $17.03, as compared to $17.01 as of June 30, 2021; Gross and net investment fundings were $286.4 million and $31.5 million, respectively. Ending debt-to-equity (net of cash) ratio was 1.15x, as compared to 1.12x as of June 30, 2021; No investments were on non-accrual status as of September 30, 2021; Subsequent to quarter-end, the Company’s Board of Directors declared a dividend of $0.34 per share for the fourth quarter of 2021 payable to stockholders of record as of December 31, 2021(1); and On October 13, 2021, the Company closed an offering of $300.0 million aggregate principal amount of 2.55% unsecured notes due 2026. The net proceeds of the offering were primarily used to pay down debt under the Company’s revolving credit facilities. SELECTED FINANCIAL HIGHLIGHTS ($ in millions, unless otherwise noted) Q3 2021 Q2 2021 Net investment income per share $0.34 $0.34 Net investment income $21.8 $21.9 Earnings per share $0.36 $0.66 Dividends per share declared and payable $0.34 $0.34 ($ in millions, unless otherwise noted) As of September 30, 2021 As of June 30, 2021 Total fair value of investments $2,356.7 $2,319.5 Total assets $2,498.7 $2,449.3 Total net assets $1,099.7 $1,098.3 Net asset value per share $17.03 $17.01 PORTFOLIO AND INVESTMENT ACTIVITY For the three months ended September 30, 2021, the Company invested $286.4 million in 39 portfolio companies, including $229.1 million in 10 new companies, $46.2 million in 28 existing companies and $11.1 million in the ISLP. The Company had $254.9 million of principal repayments and sales in the quarter. On a net basis, our investments in the quarter totaled $31.5 million. For the three months ended September 30, 2021, the ISLP invested $63.5 million in five portfolio companies. The ISLP had $62.3 million of principal repayments and sales in the quarter. On a net basis, ISLP’s investments in the quarter totaled $1.2 million. Investment Activity for the Quarter Ended September 30, 2021: ($ in millions) Q3 2021 Q2 2021 Investment Fundings $286.4 $213.2 Sales and Repayments $254.9 $257.7 Net Investment Activity $31.5 $(44.5) As of September 30, 2021, the Company’s investment portfolio had a fair value of $2,356.7 million, comprised of investments in 105 portfolio companies operating across 29 different industries. Investment Portfolio at Fair Value as of September 30, 2021: Investment Type $ in Millions % of Total First Lien Senior Secured Loans $1,887.2 80.1% Second Lien Senior Secured Loans 116.2 4.9 Subordinated Debt 16.8 0.7 Equity Interest 160.9 6.8 Preferred Equity 32.2 1.4 Warrants 0.1 0.0 Investment Vehicles 143.3 6.1 Subordinated Note in ISLP 105.9 4.5 Equity Interest in ISLP 37.4 1.6 Total $2,356.7 100.0% As of September 30, 2021, the weighted average yield on the investment portfolio at amortized cost and fair value were 7.5% and 7.6%, respectively, as compared to 7.5% and 7.7%, respectively, as of June 30, 2021.(2) 98.9% of the Company’s debt investments at fair value were in floating rate securities. As of September 30, 2021, no investments were on non-accrual status. As of September 30, 2021, ISLP’s investment portfolio had an aggregate fair value of $395.8 million, comprised of investments in 23 portfolio companies operating across 10 different industries. The investment portfolio on a fair value basis was comprised of 96.7% first lien senior secured loans and 3.3% second lien senior secured loans. 100% of ISLP’s debt investments at fair value were in floating rate securities. RESULTS OF OPERATIONS For the three months ended September 30, 2021 and June 30, 2021, total investment income was $49.5 million and $46.5 million, respectively. The increase in investment income was primarily due to an increase in prepayment related income and other income. Total expenses (before taxes), net of fee waivers for the three months ended September 30, 2021 and June 30, 2021 were $27.8 million and $24.6 million, respectively. The increase was primarily driven by an increase in investment advisory fees as a result of no fee waivers by the Advisor given the Company’s net investment income coverage of the dividend during the quarter ended September 30, 2021. Net investment income for the three months ended September 30, 2021 and June 30, 2021 was $21.8 million or $0.34 per share and $21.9 million or $0.34 per share, respectively. During the three months ended September 30, 2021, the Company had net realized and unrealized gains of $1.6 million. Net increase in net assets resulting from operations for the three months ended September 30, 2021 was $23.3 million, or $0.36 per share. CAPITAL AND LIQUIDITY As of September 30, 2021, the Company had total principal debt outstanding of $1,356.7 million, including $179.7 million outstanding in the Company’s credit facility with JPMorgan Chase Bank, National Association (the “JPM Credit Facility”), $365.7 million outstanding of the notes issued through BCC Middle Market CLO 2018-1 LLC, $398.8 million outstanding of the debt issued through BCC Middle Market CLO 2019-1 LLC, $112.5 million outstanding in the Company’s senior unsecured notes due 2023 and $300.0 million outstanding in the Company’s senior unsecured notes due 2026. For the three months ended September 30, 2021, the weighted average interest rate on debt outstanding was 3.0%, as compared to 3.2% for the three months ended June 30, 2021. As of September 30, 2021, the Company had cash and cash equivalents (including foreign cash) of $35.1 million, $270.3 million of capacity under its JPM Credit Facility and $50.0 million of capacity under the Revolving Advisor Loan. As of September 30, 2021, the Company had $225.3 million of undrawn investment commitments. As of September 30, 2021, the Company’s debt-to-equity and debt-to-equity (net of cash) ratios were 1.23x and 1.15x, respectively, as compared to 1.20x and 1.12x, respectively, as of June 30, 2021. As of September 30, 2021, the Company was in compliance with all terms under its secured credit facilities. During the quarter, the Company repurchased $37.5 million of its senior 8.50% unsecured notes due 2023 at a total cost of $39.5 million. Endnotes (1) The fourth quarter dividend is payable on January 28, 2022 to holders of record as of December 31, 2021. (2) The weighted average yield is computed as (a) the annual stated interest rate or yield earned on the relevant accruing debt and other income producing securities plus amortization of fees and discounts on the performing debt and other income producing investments, divided by (b) the total relevant investments at amortized cost. The weighted average yield does not represent the total return to our stockholders. CONFERENCE CALL INFORMATION A conference call to discuss the Company’s financial results will be held live at 8:00 a.m. Eastern Time on November 4, 2021. Please visit BCSF’s webcast link located on the Events & Presentations page of the Investor Resources section of BCSF’s website at http://www.baincapitalbdc.com for a slide presentation that complements the Earnings Conference Call. Participants are also invited to access the conference call by dialing one of the following numbers: Domestic: 1-800-458-4121 International: 1-323-794-2597 Conference ID: 7785735 All participants will need to reference “Bain Capital Specialty Finance - Third Quarter Ended September 30, 2021 Earnings Conference Call” once connected with the operator. All participants are asked to dial in 10-15 minutes prior to the call. Replay Information: An archived replay will be available approximately three hours after the conference call concludes through November 11, 2021 via a webcast link located on the Investor Resources section of BCSF’s website, and via the dial-in numbers listed below: Domestic: 1-844-512-2921 International: 1-412-317-6671 Conference ID: 7785735# Bain Capital Specialty Finance, Inc. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share data) As of As of September 30, 2021 December 31, 2020 (Unaudited) Assets Investments at fair value: Non-controlled/non-affiliate investments (amortized cost of $2,023,858 and $2,281,809, respectively) $ 2,005,635 $ 2,261,461 Non-controlled/affiliate investment (amortized cost of $99,438 and $93,089, respectively) 107,576 92,915 Controlled affiliate investment (amortized cost of $256,766 and $147,841, respectively) 243,460 130,112 Cash and cash equivalents 34,277 53,704 Foreign cash (cost of $1,033 and $976, respectively) 829 972 Restricted cash and cash equivalents 57,802 27,026 Collateral on forward currency exchange contracts 4,564 4,934 Deferred financing costs 864 3,131 Interest receivable on investments 20,943 15,720 Receivable for sales and paydowns of investments 3,850 5,928 Prepaid Insurance 376 - Unrealized appreciation on forward currency exchange contracts 4,071 - Dividend receivable 14,417 7,589 Total Assets $ 2,498,664 $ 2,603,492 Liabilities Debt (net of unamortized debt issuance costs of $10,500 and $7,147, respectively) $ 1,346,183 $ 1,458,360 Interest payable 8,471 8,223 Payable for investments purchased 5,400 10,991 Unrealized depreciation on forward currency exchange contracts - 22,614 Base management fee payable 8,776 6,289 Incentive fee payable 4,531 3,799 Accounts payable and accrued expenses 3,673 3,261 Distributions payable 21,951 21,951 Total Liabilities 1,398,985 1,535,488 Commitments and Contingencies Net Assets Preferred stock, $0.001 par value per share, 10,000,000,000 shares authorized, none issued and outstandingas of September 30, 2021 and December 31, 2020, respectively $ - $ - Common stock, par value $0.001 per share, 100,000,000,000 and 100,000,000,000 shares authorized,64,562,265 and 64,562,265 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively 65 65 Paid in capital in excess of par value 1,166,453 1,166,453 Total distributable earnings (loss) (66,839) (98,514) Total Net Assets 1,099,679 1,068,004 Total Liabilities and Total Net assets $ 2,498,664 $ 2,603,492 Net asset value per share $ 17.03 $ 16.54 Bain Capital Specialty Finance, Inc. Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) For the Three Months Ended September 30 For the Three Months Ended September 30 For the Nine Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Income Investment income from non-controlled/non-affiliate investments: Interest from investments $ 37,821 $ 43,558 $ 114,439 $ 135,576 Dividend income 38 34 38 748 PIK income 1,046 - 3,108 - Other income 1,181 607 5,512 1,106 Total investment income from non-controlled/non-affiliate investments 40,086 44,199 123,097 137,430 Investment income from non-controlled/affiliate investments: Interest from investments 455 56 1,355 56 PIK income 1,421 - 4,173 - Total investment income from non-controlled/affiliate investments 1,876 56 5,528 56 Investment income from controlled affiliate investments: Interest from investments 4,983 715 9,192 2,225 Dividend income 2,600 1,847 7,564 6,473 PIK income - - 483 - Total investment income from controlled affiliate investments 7,583 2,562 17,239 8,698 Total investment income 49,545 46,817 145,864 146,184 Expenses Interest and debt financing expenses 12,265 14,426 37,115 49,614 Base management fee 8,776 8,885 26,096 26,250 Incentive fee 4,531 - 19,301 - Professional fees 581 296 2,254 1,909 Directors fees 186 209 529 555 Other general and administrative expenses 1,445 1,545 4,075 3,878 Total expenses before fee waivers 27,784 25,361 89,370 82,206 Base management fee waiver - - (4,837) - Incentive fee waiver - - (4,519) - Total expenses, net of fee waivers 27,784 25,361 80,014 82,206 Net investment income 21,761 21,456 65,850 63,978 Net realized and unrealized gains (losses) Net realized gain (loss) on non-controlled/non-affiliate investments (668) (24,263) 22,589 (34,667) Net realized loss on controlled affiliate investments (621) - (3,858) - Net realized gain (loss) on foreign currency transactions (72) (19) (2,093) (368) Net realized gain (loss) on forward currency exchange contracts (2,085) (130) (23,773) 6,472 Net realized loss on extinguishment of debt (2,546) - (2,546) - Net change in unrealized appreciation (depreciation) on foreign currency translation (508) 194 (186) 89 Net change in unrealized appreciation (depreciation) on forward currency exchange contracts 6,080 (11,177) 26,685 (7,921) Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliate investments 922 73,892 2,125 (45,077) Net change in unrealized appreciation on non-controlled/affiliate investments 2,905 1,689 8,312 4,697 Net change in unrealized appreciation (depreciation) on controlled affiliate investments (1,826) (10,185) 4,423 (18,421) Total net gains (losses) 1,581 30,001 31,678 (95,196) Net increase (decrease) in net assets resulting from operations $ 23,342 $ 51,457 $ 97,528 $ (31,218) Basic and diluted net investment income per common share $ 0.34 $ 0.33 $ 1.02 $ 1.13 Basic and diluted increase (decrease) in net assets resulting from operations per common share $ 0.36 $ 0.80 $ 1.51 $ (0.55) Basic and diluted weighted average common shares outstanding 64,562,265 64,562,265 64,562,265 56,692,267 About Bain Capital Specialty Finance, Inc. Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. BCSF is managed by BCSF Advisors, LP, an SEC-registered investment adviser and a subsidiary of Bain Capital Credit, LP. Since commencing investment operations on October 13, 2016, and through September 30, 2021, BCSF has invested approximately $4.7 billion in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. BCSF’s investment objective is to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. BCSF has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. Forward-Looking Statements This letter may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this letter may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this letter. View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006276/en/Contacts Investor Contact: Katherine Schneider Tel. +1 212 803 9613 investors@baincapitalbdc.com Media Contact: Charlyn Lusk Tel. +1 646 502 3549 clusk@stantonprm.com
Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the “Company”, “our” or “we”) today announced financial results for the third quarter ended September 30, 2021, and that its Board of Directors has declared a dividend of $0.34 per share for the fourth quarter of 2021. “Our positive third quarter earnings results were driven by higher interest income and continued stable credit quality across our diversified portfolio,” said Michael Ewald, Chief Executive Officer of BCSF. “We also had a strong quarter of new origination activity, demonstrating the strength of Bain Capital Credit’s Private Credit Group in sourcing compelling new investment opportunities in the middle market.” QUARTERLY HIGHLIGHTS Net investment income per share was $0.34, as compared to $0.34 for the quarter ended June 30, 2021; Net income per share was $0.36, as compared to $0.66 for the quarter ended June 30, 2021; Net asset value per share as of September 30, 2021 was $17.03, as compared to $17.01 as of June 30, 2021; Gross and net investment fundings were $286.4 million and $31.5 million, respectively. Ending debt-to-equity (net of cash) ratio was 1.15x, as compared to 1.12x as of June 30, 2021; No investments were on non-accrual status as of September 30, 2021; Subsequent to quarter-end, the Company’s Board of Directors declared a dividend of $0.34 per share for the fourth quarter of 2021 payable to stockholders of record as of December 31, 2021(1); and On October 13, 2021, the Company closed an offering of $300.0 million aggregate principal amount of 2.55% unsecured notes due 2026. The net proceeds of the offering were primarily used to pay down debt under the Company’s revolving credit facilities. SELECTED FINANCIAL HIGHLIGHTS ($ in millions, unless otherwise noted) Q3 2021 Q2 2021 Net investment income per share $0.34 $0.34 Net investment income $21.8 $21.9 Earnings per share $0.36 $0.66 Dividends per share declared and payable $0.34 $0.34 ($ in millions, unless otherwise noted) As of September 30, 2021 As of June 30, 2021 Total fair value of investments $2,356.7 $2,319.5 Total assets $2,498.7 $2,449.3 Total net assets $1,099.7 $1,098.3 Net asset value per share $17.03 $17.01 PORTFOLIO AND INVESTMENT ACTIVITY For the three months ended September 30, 2021, the Company invested $286.4 million in 39 portfolio companies, including $229.1 million in 10 new companies, $46.2 million in 28 existing companies and $11.1 million in the ISLP. The Company had $254.9 million of principal repayments and sales in the quarter. On a net basis, our investments in the quarter totaled $31.5 million. For the three months ended September 30, 2021, the ISLP invested $63.5 million in five portfolio companies. The ISLP had $62.3 million of principal repayments and sales in the quarter. On a net basis, ISLP’s investments in the quarter totaled $1.2 million. Investment Activity for the Quarter Ended September 30, 2021: ($ in millions) Q3 2021 Q2 2021 Investment Fundings $286.4 $213.2 Sales and Repayments $254.9 $257.7 Net Investment Activity $31.5 $(44.5) As of September 30, 2021, the Company’s investment portfolio had a fair value of $2,356.7 million, comprised of investments in 105 portfolio companies operating across 29 different industries. Investment Portfolio at Fair Value as of September 30, 2021: Investment Type $ in Millions % of Total First Lien Senior Secured Loans $1,887.2 80.1% Second Lien Senior Secured Loans 116.2 4.9 Subordinated Debt 16.8 0.7 Equity Interest 160.9 6.8 Preferred Equity 32.2 1.4 Warrants 0.1 0.0 Investment Vehicles 143.3 6.1 Subordinated Note in ISLP 105.9 4.5 Equity Interest in ISLP 37.4 1.6 Total $2,356.7 100.0% As of September 30, 2021, the weighted average yield on the investment portfolio at amortized cost and fair value were 7.5% and 7.6%, respectively, as compared to 7.5% and 7.7%, respectively, as of June 30, 2021.(2) 98.9% of the Company’s debt investments at fair value were in floating rate securities. As of September 30, 2021, no investments were on non-accrual status. As of September 30, 2021, ISLP’s investment portfolio had an aggregate fair value of $395.8 million, comprised of investments in 23 portfolio companies operating across 10 different industries. The investment portfolio on a fair value basis was comprised of 96.7% first lien senior secured loans and 3.3% second lien senior secured loans. 100% of ISLP’s debt investments at fair value were in floating rate securities. RESULTS OF OPERATIONS For the three months ended September 30, 2021 and June 30, 2021, total investment income was $49.5 million and $46.5 million, respectively. The increase in investment income was primarily due to an increase in prepayment related income and other income. Total expenses (before taxes), net of fee waivers for the three months ended September 30, 2021 and June 30, 2021 were $27.8 million and $24.6 million, respectively. The increase was primarily driven by an increase in investment advisory fees as a result of no fee waivers by the Advisor given the Company’s net investment income coverage of the dividend during the quarter ended September 30, 2021. Net investment income for the three months ended September 30, 2021 and June 30, 2021 was $21.8 million or $0.34 per share and $21.9 million or $0.34 per share, respectively. During the three months ended September 30, 2021, the Company had net realized and unrealized gains of $1.6 million. Net increase in net assets resulting from operations for the three months ended September 30, 2021 was $23.3 million, or $0.36 per share. CAPITAL AND LIQUIDITY As of September 30, 2021, the Company had total principal debt outstanding of $1,356.7 million, including $179.7 million outstanding in the Company’s credit facility with JPMorgan Chase Bank, National Association (the “JPM Credit Facility”), $365.7 million outstanding of the notes issued through BCC Middle Market CLO 2018-1 LLC, $398.8 million outstanding of the debt issued through BCC Middle Market CLO 2019-1 LLC, $112.5 million outstanding in the Company’s senior unsecured notes due 2023 and $300.0 million outstanding in the Company’s senior unsecured notes due 2026. For the three months ended September 30, 2021, the weighted average interest rate on debt outstanding was 3.0%, as compared to 3.2% for the three months ended June 30, 2021. As of September 30, 2021, the Company had cash and cash equivalents (including foreign cash) of $35.1 million, $270.3 million of capacity under its JPM Credit Facility and $50.0 million of capacity under the Revolving Advisor Loan. As of September 30, 2021, the Company had $225.3 million of undrawn investment commitments. As of September 30, 2021, the Company’s debt-to-equity and debt-to-equity (net of cash) ratios were 1.23x and 1.15x, respectively, as compared to 1.20x and 1.12x, respectively, as of June 30, 2021. As of September 30, 2021, the Company was in compliance with all terms under its secured credit facilities. During the quarter, the Company repurchased $37.5 million of its senior 8.50% unsecured notes due 2023 at a total cost of $39.5 million. Endnotes (1) The fourth quarter dividend is payable on January 28, 2022 to holders of record as of December 31, 2021. (2) The weighted average yield is computed as (a) the annual stated interest rate or yield earned on the relevant accruing debt and other income producing securities plus amortization of fees and discounts on the performing debt and other income producing investments, divided by (b) the total relevant investments at amortized cost. The weighted average yield does not represent the total return to our stockholders. CONFERENCE CALL INFORMATION A conference call to discuss the Company’s financial results will be held live at 8:00 a.m. Eastern Time on November 4, 2021. Please visit BCSF’s webcast link located on the Events & Presentations page of the Investor Resources section of BCSF’s website at http://www.baincapitalbdc.com for a slide presentation that complements the Earnings Conference Call. Participants are also invited to access the conference call by dialing one of the following numbers: Domestic: 1-800-458-4121 International: 1-323-794-2597 Conference ID: 7785735 All participants will need to reference “Bain Capital Specialty Finance - Third Quarter Ended September 30, 2021 Earnings Conference Call” once connected with the operator. All participants are asked to dial in 10-15 minutes prior to the call. Replay Information: An archived replay will be available approximately three hours after the conference call concludes through November 11, 2021 via a webcast link located on the Investor Resources section of BCSF’s website, and via the dial-in numbers listed below: Domestic: 1-844-512-2921 International: 1-412-317-6671 Conference ID: 7785735# Bain Capital Specialty Finance, Inc. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share data) As of As of September 30, 2021 December 31, 2020 (Unaudited) Assets Investments at fair value: Non-controlled/non-affiliate investments (amortized cost of $2,023,858 and $2,281,809, respectively) $ 2,005,635 $ 2,261,461 Non-controlled/affiliate investment (amortized cost of $99,438 and $93,089, respectively) 107,576 92,915 Controlled affiliate investment (amortized cost of $256,766 and $147,841, respectively) 243,460 130,112 Cash and cash equivalents 34,277 53,704 Foreign cash (cost of $1,033 and $976, respectively) 829 972 Restricted cash and cash equivalents 57,802 27,026 Collateral on forward currency exchange contracts 4,564 4,934 Deferred financing costs 864 3,131 Interest receivable on investments 20,943 15,720 Receivable for sales and paydowns of investments 3,850 5,928 Prepaid Insurance 376 - Unrealized appreciation on forward currency exchange contracts 4,071 - Dividend receivable 14,417 7,589 Total Assets $ 2,498,664 $ 2,603,492 Liabilities Debt (net of unamortized debt issuance costs of $10,500 and $7,147, respectively) $ 1,346,183 $ 1,458,360 Interest payable 8,471 8,223 Payable for investments purchased 5,400 10,991 Unrealized depreciation on forward currency exchange contracts - 22,614 Base management fee payable 8,776 6,289 Incentive fee payable 4,531 3,799 Accounts payable and accrued expenses 3,673 3,261 Distributions payable 21,951 21,951 Total Liabilities 1,398,985 1,535,488 Commitments and Contingencies Net Assets Preferred stock, $0.001 par value per share, 10,000,000,000 shares authorized, none issued and outstandingas of September 30, 2021 and December 31, 2020, respectively $ - $ - Common stock, par value $0.001 per share, 100,000,000,000 and 100,000,000,000 shares authorized,64,562,265 and 64,562,265 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively 65 65 Paid in capital in excess of par value 1,166,453 1,166,453 Total distributable earnings (loss) (66,839) (98,514) Total Net Assets 1,099,679 1,068,004 Total Liabilities and Total Net assets $ 2,498,664 $ 2,603,492 Net asset value per share $ 17.03 $ 16.54 Bain Capital Specialty Finance, Inc. Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) For the Three Months Ended September 30 For the Three Months Ended September 30 For the Nine Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Income Investment income from non-controlled/non-affiliate investments: Interest from investments $ 37,821 $ 43,558 $ 114,439 $ 135,576 Dividend income 38 34 38 748 PIK income 1,046 - 3,108 - Other income 1,181 607 5,512 1,106 Total investment income from non-controlled/non-affiliate investments 40,086 44,199 123,097 137,430 Investment income from non-controlled/affiliate investments: Interest from investments 455 56 1,355 56 PIK income 1,421 - 4,173 - Total investment income from non-controlled/affiliate investments 1,876 56 5,528 56 Investment income from controlled affiliate investments: Interest from investments 4,983 715 9,192 2,225 Dividend income 2,600 1,847 7,564 6,473 PIK income - - 483 - Total investment income from controlled affiliate investments 7,583 2,562 17,239 8,698 Total investment income 49,545 46,817 145,864 146,184 Expenses Interest and debt financing expenses 12,265 14,426 37,115 49,614 Base management fee 8,776 8,885 26,096 26,250 Incentive fee 4,531 - 19,301 - Professional fees 581 296 2,254 1,909 Directors fees 186 209 529 555 Other general and administrative expenses 1,445 1,545 4,075 3,878 Total expenses before fee waivers 27,784 25,361 89,370 82,206 Base management fee waiver - - (4,837) - Incentive fee waiver - - (4,519) - Total expenses, net of fee waivers 27,784 25,361 80,014 82,206 Net investment income 21,761 21,456 65,850 63,978 Net realized and unrealized gains (losses) Net realized gain (loss) on non-controlled/non-affiliate investments (668) (24,263) 22,589 (34,667) Net realized loss on controlled affiliate investments (621) - (3,858) - Net realized gain (loss) on foreign currency transactions (72) (19) (2,093) (368) Net realized gain (loss) on forward currency exchange contracts (2,085) (130) (23,773) 6,472 Net realized loss on extinguishment of debt (2,546) - (2,546) - Net change in unrealized appreciation (depreciation) on foreign currency translation (508) 194 (186) 89 Net change in unrealized appreciation (depreciation) on forward currency exchange contracts 6,080 (11,177) 26,685 (7,921) Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliate investments 922 73,892 2,125 (45,077) Net change in unrealized appreciation on non-controlled/affiliate investments 2,905 1,689 8,312 4,697 Net change in unrealized appreciation (depreciation) on controlled affiliate investments (1,826) (10,185) 4,423 (18,421) Total net gains (losses) 1,581 30,001 31,678 (95,196) Net increase (decrease) in net assets resulting from operations $ 23,342 $ 51,457 $ 97,528 $ (31,218) Basic and diluted net investment income per common share $ 0.34 $ 0.33 $ 1.02 $ 1.13 Basic and diluted increase (decrease) in net assets resulting from operations per common share $ 0.36 $ 0.80 $ 1.51 $ (0.55) Basic and diluted weighted average common shares outstanding 64,562,265 64,562,265 64,562,265 56,692,267 About Bain Capital Specialty Finance, Inc. Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. BCSF is managed by BCSF Advisors, LP, an SEC-registered investment adviser and a subsidiary of Bain Capital Credit, LP. Since commencing investment operations on October 13, 2016, and through September 30, 2021, BCSF has invested approximately $4.7 billion in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. BCSF’s investment objective is to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. BCSF has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. Forward-Looking Statements This letter may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this letter may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this letter. View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006276/en/
Investor Contact: Katherine Schneider Tel. +1 212 803 9613 investors@baincapitalbdc.com Media Contact: Charlyn Lusk Tel. +1 646 502 3549 clusk@stantonprm.com