Bain Capital Specialty Finance, Inc. Third Quarter Ended September 30, 2023 Earnings Presentation BAIN CAPITAL SPECIALTY FINANCE, INC. 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. CLO Manager, LLC, and BCSF Advisors, LP are collectively referred to as “Bain ...

th Titleofeachclass TradingSymbol(s)Nameofeach pershareBCSFNew UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 814-01175 BAIN CAPITAL SPECIALTY FINANCE, INC. (Exact Name of Registrant as Specified in its Chart ...

Bain Capital Specialty Finance, Inc. (NYSE:BCSF) Q2 2023 Earnings Conference Call August 9, 2023 8:30 AM ET Corporate Participants Katherine Schneider - Investor Relations Michael Ewald - Chief Executive Officer Mike Boyle - President Sally Dornaus - Chief Financial Officer Conference Call Participants Ryan Lynch - KBW Derek Hewett - Bank of America Arren Cyganovich - Citi Operator Good morning, ladies and gentlemen, and welcome to the Bain Capital Specialty Finance Second Quarter Ended June 30, 2023, Earni ...

Investment Portfolio and Strategy - The company has invested approximately $6,794.3 million in aggregate principal amount of debt and equity investments since its inception in October 2016 through June 30, 2023[355] - The company focuses on middle-market companies with annual EBITDA between $10.0 million and $150.0 million, though it may invest in larger or smaller companies opportunistically[357] - The company's investment strategy includes senior investments with first or second lien on collateral, mezzanine debt, junior securities, and opportunistic investments in distressed debt and structured products[357] - Invested $204.4 million in 60 portfolio companies during Q2 2023, with $35.4 million related to drawdowns on delayed draw term loans and revolvers[376] - Net decrease in investments of $23.5 million for Q2 2023 due to $227.9 million in principal repayments and sales[376] - Invested $516.6 million in 85 portfolio companies during the first six months of 2023, with $112.9 million related to drawdowns on delayed draw term loans and revolvers[377] - Net increase in investments of $3.2 million for the first six months of 2023 due to $513.4 million in principal repayments and sales[377] - First Lien Senior Secured Loans accounted for 67.0% of the total portfolio by amortized cost as of June 30, 2023[380] - First Lien Senior Secured Loans accounted for 63.7% of the total amortized cost as of June 30, 2023, with a fair value of $1,532,422 million, representing 61.0% of the total fair value[391] - The total investment portfolio as of June 30, 2023, had an amortized cost of $2,544,800 million and a fair value of $2,513,854 million[391] - The total fair value of the investment portfolio as of December 31, 2022, was $2,512,707 thousand, with First Lien Senior Secured Loans representing 65.0% of the total fair value[393] Interest Rates and Yields - 94.1% of the company's debt investments as of June 30, 2023, based on fair value, bore interest at floating rates, compared to 94.5% as of December 31, 2022[362] - Weighted average yield on the total portfolio was 12.8% at amortized cost and 13.0% at fair value as of June 30, 2023[380] - 94.1% of debt bearing a floating rate as of June 30, 2023, measured on a fair value basis[384] - The weighted average yield of the investment portfolio increased to 12.8% as of June 30, 2023, compared to 8.4% as of June 30, 2022[406] - The combined weighted average interest rate for borrowings was 5.1% for the six months ended June 30, 2023, up from 3.5% in 2022[414] - Interest rates down 100 basis points result in a net decrease in net investment income of $10,051[474] - Interest rates down 200 basis points result in a net decrease in net investment income of $20,102[474] - Interest rates down 300 basis points result in a net decrease in net investment income of $29,944[474] - Interest rates up 100 basis points result in a net increase in net investment income of $10,051[474] - Interest rates up 200 basis points result in a net increase in net investment income of $20,102[474] - Interest rates up 300 basis points result in a net increase in net investment income of $30,152[474] Financial Performance and Income - The company primarily generates revenue through interest income on debt investments and distributions on equity investments, with additional revenue from capital gains, loan origination fees, and other fees[361] - Total investment income for the three months ended June 30, 2023, was $75,715 thousand, compared to $52,364 thousand for the same period in 2022[401] - Interest income increased to $58,188 thousand for the three months ended June 30, 2023, from $35,884 thousand for the same period in 2022, driven by portfolio growth and rising interest rates[406] - Net investment income before taxes for the three months ended June 30, 2023, was $40,009 thousand, up from $26,715 thousand for the same period in 2022[401] - Dividend income increased to $8,728 thousand for the three months ended June 30, 2023, from $6,370 thousand for the same period in 2022, primarily due to higher dividend income from equity interests[406] - Interest income increased to $115.1 million for the six months ended June 30, 2023, up from $73.9 million in the same period in 2022, driven by portfolio growth and rising interest rates[408] - Dividend income rose to $17.1 million for the six months ended June 30, 2023, compared to $10.0 million in 2022, primarily due to increased dividend income from equity interests[408] - Total investment income reached $150.5 million for the six months ended June 30, 2023, up from $98.4 million in 2022[408] - Net increase in net assets resulting from operations was $29.2 million for the three months ended June 30, 2023, compared to $17.2 million for the same period in 2022[435] - Net increase in net assets resulting from operations was $58.5 million for the six months ended June 30, 2023, compared to $50.9 million for the same period in 2022[435] Expenses and Fees - The company incurred $0.2 million in expenses related to the Administrator for the three months ended June 30, 2023, compared to $0.0 million for the same period in 2022[367] - The company incurred $0.4 million in expenses related to the Administrator for the six months ended June 30, 2023, compared to $0.0 million for the same period in 2022[367] - The company incurred $0.2 million in expenses related to the sub-administrator for the three months ended June 30, 2023, compared to $0.1 million for the same period in 2022[367] - The company incurred $0.3 million in expenses related to the sub-administrator for the six months ended June 30, 2023, compared to $0.3 million for the same period in 2022[367] - Interest and debt financing expenses increased to $40.0 million for the six months ended June 30, 2023, compared to $21.7 million in 2022, due to higher principal debt and rising base rates[413] - Management fees (net of waivers) increased to $18.0 million for the six months ended June 30, 2023, compared to $16.8 million in 2022[417] - Incentive fees (net of waivers) rose to $15.1 million for the six months ended June 30, 2023, up from $7.4 million in 2022[418] - The company recorded U.S. federal excise tax expenses of $0.8 million for Q2 2023 and $1.3 million for the six months ended June 30, 2023[451] - The company's base management fee is 1.5% (0.375% per quarter) of gross assets for assets held at a 200% coverage ratio, and 1.0% (0.25% per quarter) for assets below 200% coverage[468] Portfolio Performance and Valuation - Performing investments accounted for 97.9% of the total portfolio by amortized cost as of June 30, 2023[388] - Non-accrual investments decreased to $50.7 million (2.1% of total portfolio) as of June 30, 2023, compared to $71.5 million (3.0%) as of December 31, 2022[388][389] - Investments rated 2 (performing as expected) constituted 91.4% of the total fair value as of June 30, 2023, with a fair value of $2,180,766 million[397] - The total fair value of investments rated 3 (performing below expectations) was $202,032 thousand, representing 8.5% of the total fair value as of June 30, 2023[397] - Net realized losses on investments were ($10.9) million for the six months ended June 30, 2023, compared to ($1.2) million in 2022[427] - Unrealized appreciation on investments was $47.3 million for the six months ended June 30, 2023, offset by ($44.7) million in unrealized depreciation[428] - Unrealized appreciation on 31 portfolio company investments was $40.8 million for the six months ended June 30, 2022, offset by unrealized depreciation of ($51.1) million on 96 portfolio company investments[429] - The company's valuation process for illiquid/hard-to-value assets includes initial valuation by investment professionals, review by senior management, and periodic independent valuation for material investments[464][465] - The company's valuation of portfolio investments without readily available market quotations involves discounted cash flow models and comparisons to peer companies[463] Debt and Asset Coverage - The company's asset coverage ratio was 175.1% as of June 30, 2023, exceeding the regulatory minimum of 150%[369] - Asset coverage ratio was 175.1% as of June 30, 2023, compared to 180.0% as of December 31, 2022[438] - Total debt outstanding as of June 30, 2023 was $1,498,500, with a carrying value of $1,489,607[446] - Total debt obligations as of June 30, 2023, amounted to $1,498,500, with $300,000 due within 1-3 years and $846,000 due within 3-5 years[471] - The weighted average principal debt balance outstanding for the six months ended June 30, 2023 was $1,477.2 million, up from $1,267.7 million in 2022[413] Distributions and Dividends - Total distributions declared during the six months ended June 30, 2023 were $49,068, with a per share amount of $0.76[448] - Total distributions declared for the year amounted to $43,902, with $0.68 per share distributed across two quarters[449] - The company's dividend reinvestment plan allows stockholders to automatically reinvest cash dividends and distributions into additional shares of common stock[453] Market Risk and Hedging - The company's market risk exposure includes changes in interest rates, with investments primarily in illiquid loans and securities of middle-market companies[472] - The company may use hedging techniques like forward contracts to mitigate foreign exchange risks[474] - Net change in unrealized appreciation on investments due to foreign currency was $4,416 for the six months ended June 30, 2023, compared to ($10,607) for the same period in 2022[434] - Net realized gain (loss) on foreign currency transactions was ($4,534) for the six months ended June 30, 2023, compared to $2,678 for the same period in 2022[434] - Net change in unrealized appreciation on forward currency exchange contracts was ($1,315) for the six months ended June 30, 2023, compared to $9,775 for the same period in 2022[434] Revenue Recognition and Contractual Obligations - The company's revenue recognition policy includes recording investment transactions on a trade date basis and using the effective interest method for interest income[458] - The company's contractual obligations include an Amended Advisory Agreement with a base management fee and an incentive fee based on investment performance[467] Cash and Liquidity - Total investment portfolio, cash, and cash equivalents amounted to $2,415,627 thousand as of June 30, 2023[390] - Cash, foreign cash, restricted cash, and cash equivalents increased by $2.9 million for the six months ended June 30, 2023[440]

Bain Capital Specialty Finance, Inc. (NYSE:BCSF) Q1 2023 Earnings Conference Call May 10, 2023 8:30 AM ET Company Participants Katherine Schneider - Investor Relations Michael Ewald - Chief Executive Officer Michael Boyle - President Sally Dornaus - Chief Financial Officer Conference Call Participants Finian O'Shea - Wells Fargo Derek Hewett - Bank of America Operator Good morning, ladies and gentlemen, and welcome to the Bain Capital Specialty Finance First Quarter ended March 31st, 2023 Earnings Conferenc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 814-01175 BAIN CAPITAL SPECIALTY FINANCE, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 81-2878769 (State or Other Jurisdict ...

Bain Capital Specialty Finance, Inc. (NYSE:BCSF) Q4 2022 Earnings Conference Call March 1, 2023 8:30 AM ET Company Participants Katherine Schneider - Investor Relations Michael Ewald - Chief Executive Officer Mike Boyle - President Sally Dornaus - Chief Financial Officer Conference Call Participants Arren Cyganovich - Citi Paul Johnson - KBW Operator Greetings and welcome to the Bain Capital Specialty Finance Fourth Quarter and Fiscal Year Earnings Conference Call. At this time, all participants are in a li ...

Bain Capital Specialty Finance, Inc. Fourth Quarter 2022 Earnings Presentation 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. CLO Manager, LLC, and BCSF Advisors, LP are collectively referred to as "Bain Capital Credit", which are credit affiliates of Bain Cap ...

Table of Contents | --- | --- | --- | --- | |------------------------------------------|-------|-----------------------------------------------------------------------|---------------------------------------------------------| | Title of each class | | Securities registered pursuant to Section 12(b) \nTrading Symbol(s) | of the Act: \nName of each exchange on which registered | | Common Stock, par value $0.001 per share | | BCSF | New York Stock Exchange | | | | Securities registered pursuant to Section 12( ...

Financial Data and Key Metrics Changes - The company reported a net investment income (NII) per share of $0.53 for Q3 2022, representing a 29% increase from $0.41 in the previous quarter, with a 12.4% annualized yield on book value [7][23] - The net asset value (NAV) per share decreased by approximately 1% quarter-over-quarter to $16.98, primarily due to net unrealized losses across the portfolio [9][24] - Total investment income increased to $62.8 million from $52.4 million in the previous quarter, driven by rising interest rates and higher fees [22] Business Line Data and Key Metrics Changes - New investment fundings totaled $433 million across 59 companies, with $270 million in 9 new companies and $107 million in 48 existing companies [15] - Sales and repayment activity amounted to approximately $397 million, resulting in a net funded portfolio growth of $36 million quarter-over-quarter [16] - The investment portfolio at fair value was $2.3 billion, with 70% in first lien debt, 4% in second lien debt, and 2% in subordinated debt [18] Market Data and Key Metrics Changes - The weighted average yield on the investment portfolio increased to 10.2% at amortized cost and 10.6% at fair value, compared to 8.5% and 8.8% in the previous quarter [19] - Investments in Europe represented 17% of the portfolio at fair value, up from 16% in the prior quarter, with a focus on software and healthcare sectors [19] Company Strategy and Development Direction - The company is focused on investing in defensive industries, avoiding direct consumer-facing sectors that may experience volatile demand [12] - The strategy includes maintaining strong documentation and lender-friendly terms for 93% of debt investments, allowing for early risk mitigation discussions [11] - The company aims to navigate challenging economic conditions by leveraging its expertise and resources accumulated over market cycles [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience amid macroeconomic headwinds, noting that portfolio companies have been able to maintain stable gross margins despite inflation [36] - The company anticipates a slowdown in repayments due to the macroeconomic backdrop but remains optimistic about the overall portfolio performance [34] - Future earnings are expected to benefit from rising interest rates, with a potential increase of approximately $0.04 per share for a 100 basis point rise [26] Other Important Information - The company increased its regular quarterly dividend by approximately 6% to $0.36 per share, reflecting confidence in its earnings power [8] - The debt-to-equity ratio increased to 1.25x from 1.14x in the previous quarter, influenced by a large receivable on the balance sheet [24] Q&A Session Summary Question: How much of the EPS this quarter was from one-time items? - Approximately $0.06 of the EPS was from a one-time dividend from an equity co-investment, and another $0.06 from commitment fees [30] Question: How does the fee income this quarter compare to previous quarters? - The fee income was in the middle range compared to the last four quarters, with some quarters seeing as high as $8 million [32] Question: What drove the higher level of activity this quarter, especially on the repayment side? - The higher activity was driven by dropping assets into joint ventures and commitment fees related to underwritten deals [34] Question: How is the performance of borrowers changing with the rate increase? - The performance has been strong, with companies able to push through price increases, although there are concerns about interest coverage for some risk-rated assets [36][38]