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BOSTON — February 28, 2019 — Bain Capital Specialty Finance, Inc. (“BCSF” or the “Company” ) (NYSE: BCSF) today announced that its Board of Directors has declared a dividend of $0.41 per share for the first quarter of 2019 and announced its financial results for the fourth quarter and year ended December 31, 2018.
“We are pleased with the results our well-diversified portfolio generated during our first quarter as a publicly traded company,” said Michael Ewald, Chief Executive Officer of Bain Capital Specialty Finance, Inc. “As evidenced by our recent closing of a $350 million credit agreement, we remain focused on identifying attractive marketplace opportunities to drive enhanced shareholder value while continuing to grow our platform in a disciplined and consistent manner.”
QUARTERLY HIGHLIGHTS
Selected Financial Highlights
(dollar amounts in thousands) |
Q4 2018 |
Q4 2017 |
Net investment income per share |
$0.41 |
$0.19 |
Net investment income |
$19,774 |
$4,818 |
Earnings per share |
($0.21) |
$0.28 |
Dividends declared and payable |
$0.41 |
$0.31 |
As of December 31, |
||
(dollar amounts in thousands) |
2018 |
2017 |
Total fair value of investments |
$1,727,806 |
$831,578 |
Total assets |
1,791,014 |
988,251 |
Total net assets |
1,001,629 |
506,963 |
Net asset value per share |
$19.46 |
$20.30 |
PORTFOLIO AND INVESTMENT ACTIVITY
(dollar amounts in millions) |
Q4 2018 |
Q4 2017 |
Investment Fundings |
$451.8 |
$394.7 |
Sales and Repayments |
42.7 |
49.6 |
Net Investment Activity |
409.1 |
345.1 |
Investment Portfolio at FV |
$ in Millions |
% of Total |
First lien senior secured |
$1,058.8 |
61.3% |
First lien last out |
27.5 |
1.6 |
Second lien senior secured |
258.2 |
14.9 |
Subordinated debt |
39.6 |
2.3 |
Corporate bonds |
35.0 |
2.0 |
Investment vehicle |
279.4 |
16.2 |
Equity interest |
26.5 |
1.5 |
Preferred equity |
2.8 |
0.2 |
Warrants |
- |
- |
Total |
$1,727.8 |
100.0% |
FOURTH QUARTER 2018 OPERATING RESULTS
CAPITAL and LIQUIDITY
CONFERENCE CALL INFORMATION
A conference call to discuss the Company’s financial results will be held live at 5:30 p.m. Eastern Time on February 28, 2019. Please visit BCSF’s webcast link located on the Events & Presentation page of the Investor Resources section of BCSF’s website 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:
All callers will need to enter the Conference ID followed by the # sign and reference “Bain Capital Specialty Finance” once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected.
Replay Information:
An archived replay will be available approximately three hours after the conference call concludes through March 7, 2019 via a webcast link located on the Investor Resources section of BCSF’s website, and via the dial-in numbers listed below:
ENDNOTES
(1) The $0.41 per share dividend is payable on April 12, 2019 to holders of record as of March 29, 2019.
(2) Information through December 31, 2018. Computed for debt investments based upon the annual interest rate as of December 31, 2018, divided by the total par amount of investments. For investments with floating interest rates, the yield calculation is computed using the contract rate data as of December 31, 2018. Weighted average yield for the Company’s Equity Interest in ABCS (Antares Bain Capital Complete Financing Solution LLC) represents the weighted average levered yield of the Company’s proportionate investment in ABCS at December 31, 2018. Weighted average yield for Equity Interest in ABCS is computed based upon the sum of (i) the weighted average of the interest rate of investments held by ABCS less (ii) the weighted average interest rate of the ABCS Facility, divided by the Company’s par amount in ABCS. Total weighted average gross yield is the weighted average of the yields of the Company’s debt investments and its Equity Interest in ABCS. The weighted average gross yield does not represent the total return to our stockholders. Gross yield does not reflect fees and expenses of the Company and does not represent the return a stockholder would receive. If fees and expenses were included in the calculation, the yield would be lower.
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, L.P., an SEC-registered investment adviser and a subsidiary of Bain Capital Credit, L.P. Since commencing investment operations on October 13, 2016, and through September 30, 2018, BCSF has invested approximately $1,727.9 million 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
Certain information contained herein may constitute “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “seek,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” “target,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events may differ materially from those reflected or contemplated in such forward-looking statements. These statements are not guarantees of future events and are subject to risks, uncertainties, and other factors, some of which are beyond BCSF’s control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in BCSF’s filings with the SEC. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which BCSF makes them. BCSF does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
Investor Contact:
investors@baincapitalbdc.com
Media Contact:
Charlyn Lusk
Tel. +1 646 502 3549
clusk@stantonprm.com