BOSTON–(BUSINESS WIRE)–Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the “Firm”, “our” or “we”) right now introduced monetary outcomes for the second quarter ended June 30, 2022, and that its Board of Administrators has declared a dividend of $0.34 per share for the third quarter of 2022.
“We stay centered on executing our technique of investing in senior secured loans to high-quality middle-market firms, which generated increased web funding earnings for our shareholders this quarter,” stated Michael Ewald, Chief Govt Officer of BCSF. “We imagine the Firm is nicely positioned to proceed to ship enticing earnings and shareholder worth over the long-term pushed by our diversified portfolio of senior secured, floating price loans and the power of our capital construction.”
QUARTERLY HIGHLIGHTS
- Internet funding earnings per share was $0.41, as in comparison with $0.34 for the quarter ended March 31, 2022;
- Internet earnings per share was $0.27, as in comparison with $0.52 for the quarter ended March 31, 2022;
- Internet asset worth per share as of June 30, 2022 was $17.15, as in comparison with $17.22 as of March 31, 2022;
- In the course of the quarter, the Firm made new funding fundings of $481.9 million. Gross sales and reimbursement exercise totaled $332.Four million, leading to web funding fundings of $149.5 million;
- Ending debt-to-equity and debt-to-equity (web of money) ratios have been 1.14x and 1.07x, respectively, as in comparison with 0.99x and 0.89x, respectively, as of March 31, 2022;
- As of June 30, 2022, the Firm had one portfolio firm on non-accrual standing, representing 1.4% of the entire funding portfolio at honest worth;
- Subsequent to quarter-end, the Firm’s Board of Administrators declared a dividend of $0.34 per share for the third quarter of 2022 payable to stockholders of file as of September 30, 2022(1); and
- In July, the Firm elevated the entire commitments to its Sumitomo Credit score Facility to $485.Zero million, up from $300.Zero million.
SELECTED FINANCIAL HIGHLIGHTS
|
($ in tens of millions, except in any other case famous) |
Q2 2022 |
Q1 2022 |
||
|
Internet funding earnings per share |
$0.41 |
$0.34 |
||
|
Internet funding earnings |
$26.7 |
$21.7 |
||
|
Earnings per share |
$0.27 |
$0.52 |
||
|
Dividends per share declared and payable |
$0.34 |
$0.34 |
||
|
|
|
|
||
|
($ in tens of millions, except in any other case famous) |
As of June 30, 2022 |
As of March 31, 2022 |
||
|
Whole honest worth of investments |
$2,287.0 |
$2,154.7 |
||
|
Whole belongings |
$2,426.0 |
$2,310.6 |
||
|
Whole web belongings |
$1,107.0 |
$1,111.7 |
||
|
Internet asset worth per share |
$17.15 |
$17.22 |
||
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended June 30, 2022, the Firm invested $481.9 million in 50 portfolio firms, together with $253.7 million in 11 new firms, $216.Eight million in 38 current firms and $11.Four million in Worldwide Senior Mortgage Program, LLC (“ISLP”). The Firm had $332.Four million of principal repayments and gross sales within the quarter, leading to web funding fundings of $149.5 million.
For the three months ended June 30, 2022, ISLP invested $74.5 million in six portfolio firms. ISLP had $27.7 million of principal repayments and gross sales within the quarter. On a web foundation, ISLP’s investments within the quarter totaled $46.Eight million.
For the three months ended June 30, 2022, SLP invested $82.Three million in 12 portfolio firms. SLP had $17.6 million of principal repayments and gross sales within the quarter. On a web foundation, SLP’s investments within the quarter totaled $64.7 million.
Funding Exercise for the Quarter Ended June 30, 2022:
|
($ in tens of millions) |
Q2 2022 |
Q1 2022 |
||
|
Funding Fundings |
$481.9 |
$371.0 |
||
|
Gross sales and Repayments |
$332.4 |
$521.0 |
||
|
Internet Funding Exercise |
$149.5 |
$(150.0) |
As of June 30, 2022, the Firm’s funding portfolio had a good worth of $2,287.Zero million, comprised of investments in 122 portfolio firms working throughout 31 totally different industries.
Funding Portfolio at Truthful Worth as of June 30, 2022:
|
Funding Sort |
$ in Tens of millions |
% of Whole |
||
|
First Lien Senior Secured Loans |
$1,632.1 |
71.4% |
||
|
Second Lien Senior Secured Loans |
95.3 |
4.2 |
||
|
Subordinated Debt |
39.3 |
1.7 |
||
|
Fairness Curiosity |
216.0 |
9.4 |
||
|
Most popular Fairness |
75.9 |
3.3 |
||
|
Warrants |
0.5 |
0.0 |
||
|
Funding Automobiles |
227.9 |
10.0 |
||
|
Subordinated Observe in ISLP |
142.4 |
6.2 |
||
|
Fairness Curiosity in ISLP |
45.3 |
2.0 |
||
|
Subordinated Observe in SLP |
35.8 |
1.6 |
||
|
Most popular and Fairness Curiosity in SLP |
4.4 |
0.2 |
||
|
Whole |
$2,287.0 |
100.0% |
As of June 30, 2022, the weighted common yield on the funding portfolio at amortized value and honest worth have been 8.5% and eight.8%, respectively, as in comparison with 7.9% and eight.1%, respectively, as of March 31, 2022.(2) 94.8% of the Firm’s debt investments at honest worth have been in floating price securities.
As of June 30, 2022, one portfolio firm was on non-accrual standing, representing 2.2% and 1.4% of the entire funding portfolio at amortized value and honest worth, respectively.
As of June 30, 2022, ISLP’s funding portfolio had an combination honest worth of $541.Three million, comprised of investments in 31 portfolio firms working throughout 14 totally different industries. The funding portfolio on a good worth foundation was comprised of 96.4% first lien senior secured loans and three.6% second lien senior secured loans. 100% of ISLP’s debt investments at honest worth have been in floating price securities.
As of June 30, 2022, SLP’s funding portfolio had an combination honest worth of $433.1 million, comprised of investments in 45 portfolio firms working throughout 20 totally different industries.(3) The funding portfolio on a good worth foundation was comprised of 95.0% first lien senior secured loans and 5.0% second lien senior secured loans. 100% of SLP’s debt investments at honest worth have been in floating price securities.
RESULTS OF OPERATIONS
For the three months ended June 30, 2022 and March 31, 2022, complete funding earnings was $52.Four million and $46.Zero million, respectively. The rise in funding earnings was primarily as a consequence of a rise in different earnings and dividend earnings.
Whole bills (earlier than taxes) for the three months ended June 30, 2022 and March 31, 2022 have been $25.6 million and $24.Three million, respectively. The rise was primarily pushed by a rise in incentive charges and curiosity and debt financing bills.
Internet funding earnings for the three months ended June 30, 2022 and March 31, 2022 was $26.7 million or $0.41 per share and $21.7 million or $0.34 per share, respectively.
In the course of the three months ended June 30, 2022, the Firm had web realized and unrealized features (losses) of $(9.5) million.
Internet enhance in web belongings ensuing from operations for the three months ended June 30, 2022 was $17.2 million, or $0.27 per share.
CAPITAL AND LIQUIDITY
As of June 30, 2022, the Firm had complete principal debt excellent of $1,256.7 million, together with $191.7 million excellent within the Firm’s Sumitomo Credit score Facility, $352.5 million excellent of the debt issued by means of BCC Center Market CLO 2019-1 LLC, $112.5 million excellent within the Firm’s senior unsecured notes due 2023, $300.Zero million excellent within the Firm’s senior unsecured notes due March 2026 and $300.Zero million excellent within the Firm’s senior unsecured notes due October 2026.
For the three months ended June 30, 2022, the weighted common rate of interest on debt excellent was 3.2%, as in comparison with 2.9% for the three months ended March 31, 2022.
As of June 30, 2022, the Firm had money and money equivalents (together with overseas money) of $43.Zero million, $108.Three million of capability beneath its Sumitomo Credit score Facility and $50.Zero million of capability beneath the Revolving Advisor Mortgage. As of June 30, 2022, the Firm had $283.Three million of undrawn funding commitments.
As of June 30, 2022, the Firm’s debt-to-equity and debt-to-equity (web of money) ratios have been 1.14x and 1.07x, respectively, as in comparison with 0.99x and 0.89x, respectively, as of March 31, 2022.
Subsequent to quarter-end, the Firm elevated its complete commitments to the Sumitomo Credit score Facility from $300.Zero million to $485.Zero million.
Endnotes
|
(1) |
The third quarter dividend is payable on October 28, 2022 to holders of file as of September 30, 2022. |
|
|
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||
|
(2) |
The weighted common yield is computed as (a) the annual acknowledged rate of interest or yield earned on the related accruing debt and different earnings producing securities plus amortization of charges and reductions on the performing debt and different earnings producing investments, divided by (b) the entire related investments at amortized value. The weighted common yield doesn’t signify the entire return to our stockholders. |
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|
(3) |
SLP acquired 70% of the member fairness pursuits of the Firm’s 2018-1 portfolio (“2018-1”). The Firm retained 30% of the 2018-1 membership pursuits as a non-controlling fairness curiosity. |
CONFERENCE CALL INFORMATION
A convention name to debate the Firm’s monetary outcomes will probably be held dwell at 8:30 a.m. Japanese Time on August 4, 2022. Please go to BCSF’s webcast hyperlink positioned on the Occasions & Displays web page of the Investor Sources part of BCSF’s web site at http://www.baincapitalbdc.com for a slide presentation that enhances the Earnings Convention Name.
Members are additionally invited to entry the convention name by dialing one of many following numbers:
- Home: 1-800-289-0571
- Worldwide: 1-323-794-2093
- Convention ID: 9543241
All individuals might want to reference “Bain Capital Specialty Finance – Second Quarter Ended June 30, 2022 Earnings Convention Name” as soon as related with the operator. All individuals are requested to dial in 10-15 minutes previous to the decision.
Replay Data:
An archived replay will probably be obtainable roughly three hours after the convention name concludes by means of August 11, 2022 by way of a webcast hyperlink positioned on the Investor Sources part of BCSF’s web site, and by way of the dial-in numbers listed under:
- Home: 1-844-512-2921
- Worldwide: 1-412-317-6671
- Convention ID: 9543241#
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Bain Capital Specialty Finance, Inc. |
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Consolidated Statements of Belongings and Liabilities (in 1000’s, besides share and per share knowledge) |
||||||||
|
|
As of |
|
As of |
|
||||
|
|
June 30, 2022 |
|
December 31, 2021 |
|
||||
|
|
(Unaudited) |
|
|
|||||
|
Belongings |
|
|
||||||
|
Investments at honest worth: |
|
|
||||||
|
Non-controlled/non-affiliate investments (amortized value of $1,837,653 and $1,921,970, respectively) |
$ |
1,784,423 |
|
$ |
1,901,054 |
|
||
|
Non-controlled/affiliate funding (amortized value of $124,564 and $100,888, respectively) |
|
151,735 |
|
|
113,290 |
|
||
|
Managed affiliate funding (amortized value of $357,458 and $288,526, respectively) |
|
350,880 |
|
|
274,761 |
|
||
|
Money and money equivalents |
|
38,013 |
|
|
87,443 |
|
||
|
Overseas money (value of $8,902 and $30,877, respectively) |
|
5,003 |
|
|
29,979 |
|
||
|
Restricted money and money equivalents |
|
25,910 |
|
|
86,159 |
|
||
|
Collateral on ahead foreign money change contracts |
|
– |
|
|
2,815 |
|
||
|
Deferred financing prices |
|
1,961 |
|
|
2,178 |
|
||
|
Curiosity receivable on investments |
|
27,776 |
|
|
19,269 |
|
||
|
Receivable for gross sales and paydowns of investments |
|
13,863 |
|
|
30,334 |
|
||
|
Pay as you go Insurance coverage |
|
559 |
|
|
193 |
|
||
|
Unrealized appreciation on ahead foreign money change contracts |
|
15,095 |
|
|
5,321 |
|
||
|
Dividend receivable |
|
10,826 |
|
|
18,397 |
|
||
|
Whole Belongings |
$ |
2,426,044 |
|
$ |
2,571,193 |
|
||
|
|
|
|
||||||
|
Liabilities |
|
|
||||||
|
Debt (web of unamortized debt issuance prices of $12,440 and $15,718, respectively) |
$ |
1,244,283 |
|
$ |
1,414,982 |
|
||
|
Curiosity payable |
|
7,164 |
|
|
7,058 |
|
||
|
Payable for investments bought |
|
27,052 |
|
|
7,594 |
|
||
|
Base administration payment payable |
|
8,451 |
|
|
8,792 |
|
||
|
Incentive payment payable |
|
4,069 |
|
|
4,727 |
|
||
|
Collateral on ahead foreign money change contracts |
|
2,743 |
|
|
– |
|
||
|
Accounts payable and accrued bills |
|
3,317 |
|
|
6,083 |
|
||
|
Distributions payable |
|
21,951 |
|
|
21,951 |
|
||
|
Whole Liabilities |
|
1,319,030 |
|
|
1,471,187 |
|
||
|
|
|
|
||||||
|
Commitments and Contingencies (See Observe 10) |
|
|
||||||
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|
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||||||
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Internet Belongings |
|
|
||||||
|
Widespread inventory, par worth $0.001 per share, 100,000,000,000 and 100,000,000,000 shares approved, 64,562,265 and 64,562,265 shares issued and excellent as of June 30, 2022 and December 31, 2021, respectively |
|
65 |
|
|
65 |
|
||
|
Paid in capital in extra of par worth |
|
1,168,384 |
|
|
1,168,384 |
|
||
|
Whole distributable earnings (loss) |
|
(61,435 |
) |
|
(68,443 |
) |
||
|
Whole Internet Belongings |
|
1,107,014 |
|
|
1,100,006 |
|
||
|
Whole Liabilities and Whole Internet belongings |
$ |
2,426,044 |
|
$ |
2,571,193 |
|
||
|
|
|
|
||||||
|
Internet asset worth per share |
$ |
17.15 |
|
$ |
17.04 |
|
||
|
See Notes to Consolidated Monetary Statements |
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|
Bain Capital Specialty Finance, Inc. |
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Consolidated Statements of Operations (in 1000’s, besides share and per share knowledge) (Unaudited) |
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|
|
For the Three Months |
|
|
For the Three Months |
|
|
For the Six Months |
|
|
For the Six Months |
|
||||
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Funding earnings from non-controlled/non-affiliate investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Curiosity from investments |
|
$ |
29,769 |
|
|
$ |
36,706 |
|
|
$ |
64,056 |
|
|
$ |
76,619 |
|
|
Dividend earnings |
|
|
– |
|
|
|
– |
|
|
|
108 |
|
|
|
– |
|
|
PIK earnings |
|
|
2,375 |
|
|
|
1,082 |
|
|
|
4,883 |
|
|
|
2,062 |
|
|
Different earnings |
|
|
7,690 |
|
|
|
875 |
|
|
|
8,155 |
|
|
|
4,331 |
|
|
Whole funding earnings from non-controlled/non-affiliate investments |
|
|
39,834 |
|
|
|
38,663 |
|
|
|
77,202 |
|
|
|
83,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding earnings from non-controlled/affiliate investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Curiosity from investments |
|
|
1,901 |
|
|
|
477 |
|
|
|
2,225 |
|
|
|
900 |
|
|
Dividend earnings |
|
|
1,851 |
|
|
|
– |
|
|
|
1,851 |
|
|
|
– |
|
|
PIK earnings |
|
|
45 |
|
|
|
1,366 |
|
|
|
1,449 |
|
|
|
2,752 |
|
|
Whole funding earnings from non-controlled/affiliate investments |
|
|
3,797 |
|
|
|
1,843 |
|
|
|
5,525 |
|
|
|
3,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funding earnings from managed affiliate investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Curiosity from investments |
|
|
4,214 |
|
|
|
2,572 |
|
|
|
7,636 |
|
|
|
4,209 |
|
|
Dividend earnings |
|
|
4,519 |
|
|
|
2,929 |
|
|
|
8,012 |
|
|
|
4,964 |
|
|
PIK earnings |
|
|
– |
|
|
|
483 |
|
|
|
– |
|
|
|
483 |
|
|
Whole funding earnings from managed affiliate investments |
|
|
8,733 |
|
|
|
5,984 |
|
|
|
15,648 |
|
|
|
9,656 |
|
|
Whole funding earnings |
|
|
52,364 |
|
|
|
46,490 |
|
|
|
98,375 |
|
|
|
96,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bills |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Curiosity and debt financing bills |
|
|
11,027 |
|
|
|
13,017 |
|
|
|
21,670 |
|
|
|
24,850 |
|
|
Base administration payment |
|
|
8,451 |
|
|
|
8,623 |
|
|
|
16,820 |
|
|
|
17,320 |
|
|
Incentive payment |
|
|
4,069 |
|
|
|
8,042 |
|
|
|
7,380 |
|
|
|
14,771 |
|
|
Skilled charges |
|
|
446 |
|
|
|
714 |
|
|
|
836 |
|
|
|
1,673 |
|
|
Administrators charges |
|
|
179 |
|
|
|
171 |
|
|
|
354 |
|
|
|
343 |
|
|
Different normal and administrative bills |
|
|
1,477 |
|
|
|
1,241 |
|
|
|
2,897 |
|
|
|
2,629 |
|
|
Whole bills earlier than payment waivers |
|
|
25,649 |
|
|
|
31,808 |
|
|
|
49,957 |
|
|
|
61,586 |
|
|
Base administration payment waiver |
|
|
– |
|
|
|
(2,723 |
) |
|
|
– |
|
|
|
(4,837 |
) |
|
Incentive payment waiver |
|
|
– |
|
|
|
(4,519 |
) |
|
|
– |
|
|
|
(4,519 |
) |
|
Whole bills, web of payment waivers |
|
|
25,649 |
|
|
|
24,566 |
|
|
|
49,957 |
|
|
|
52,230 |
|
|
Internet funding earnings |
|
|
26,715 |
|
|
|
21,924 |
|
|
|
48,418 |
|
|
|
44,090 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internet realized and unrealized features (losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internet realized acquire (loss) on non-controlled/non-affiliate investments |
|
|
(2,576 |
) |
|
|
4,845 |
|
|
|
(1,159 |
) |
|
|
23,258 |
|
|
Internet realized acquire (loss) on managed affiliate investments |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(3,237 |
) |
|
Internet realized acquire (loss) on overseas foreign money transactions |
|
|
3,166 |
|
|
|
1,005 |
|
|
|
2,678 |
|
|
|
(2,021 |
) |
|
Internet realized acquire (loss) on ahead foreign money change contracts |
|
|
2,018 |
|
|
|
(18,396 |
) |
|
|
3,261 |
|
|
|
(21,688 |
) |
|
Internet change in unrealized appreciation (depreciation) on overseas foreign money translation |
|
|
(2,051 |
) |
|
|
(65 |
) |
|
|
(1,705 |
) |
|
|
322 |
|
|
Internet change in unrealized appreciation on ahead foreign money change contracts |
|
|
8,124 |
|
|
|
16,028 |
|
|
|
9,775 |
|
|
|
20,604 |
|
|
Internet change in unrealized appreciation (depreciation) on non-controlled/non-affiliate investments |
|
|
(27,206 |
) |
|
|
4,426 |
|
|
|
(32,314 |
) |
|
|
1,202 |
|
|
Internet change in unrealized (depreciation) on non-controlled/affiliate investments |
|
|
9,102 |
|
|
|
5,780 |
|
|
|
14,769 |
|
|
|
5,407 |
|
|
Internet change in unrealized appreciation (depreciation) on managed affiliate investments |
|
|
(63 |
) |
|
|
6,886 |
|
|
|
7,187 |
|
|
|
6,249 |
|
|
Whole web features |
|
|
(9,486 |
) |
|
|
20,509 |
|
|
|
2,492 |
|
|
|
30,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Internet enhance in web belongings ensuing from operations |
|
$ |
17,229 |
|
|
$ |
42,433 |
|
|
$ |
50,910 |
|
|
$ |
74,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary and diluted web funding earnings per frequent share |
|
$ |
0.41 |
|
|
$ |
0.34 |
|
|
$ |
0.75 |
|
|
$ |
0.68 |
|
|
Primary and diluted enhance in web belongings ensuing from operations per frequent share |
|
$ |
0.27 |
|
|
$ |
0.66 |
|
|
$ |
0.79 |
|
|
$ |
1.15 |
|
|
Primary and diluted weighted common frequent shares excellent |
|
|
64,562,265 |
|
|
|
64,562,265 |
|
|
|
64,562,265 |
|
|
|
64,562,265 |
|
|
See Notes to Consolidated Monetary Statements |
||||||||||||||||
About Bain Capital Specialty Finance, Inc.
Bain Capital Specialty Finance, Inc. is an externally managed specialty finance firm centered on lending to center market firms. BCSF is managed by BCSF Advisors, LP, an SEC-registered funding adviser and a subsidiary of Bain Capital Credit score, LP. Since commencing funding operations on October 13, 2016, and thru June 30, 2022, BCSF has invested roughly $5.Eight billion in combination principal quantity of debt and fairness investments previous to any subsequent exits or repayments. BCSF’s funding goal is to generate present earnings and, to a lesser extent, capital appreciation by means of direct originations of secured debt, together with first lien, first lien/final out, unitranche and second lien debt, investments in strategic joint ventures, fairness investments and, to a lesser extent, company bonds. BCSF has elected to be regulated as a enterprise improvement firm beneath the Funding Firm Act of 1940, as amended.
Ahead-Wanting Statements
This letter could include “forward-looking statements” throughout the that means of the Personal Securities Litigation Reform Act of 1995. Statements apart from statements of historic info included on this letter could represent forward-looking statements and will not be ensures of future efficiency or outcomes and contain a lot of dangers and uncertainties. Precise outcomes could differ materially from these within the forward-looking statements on account of a lot of elements, together with these described sometimes in filings with the U.S. Securities and Trade Fee. The Firm undertakes no obligation to replace any forward-looking assertion made herein. All forward-looking statements communicate solely as of the date of this letter.
