Q1 2024 Bain Capital Specialty Finance Inc Earnings Call Transcript
Key Points
- Net investment income per share was $0.53, with an annualized yield of 12% on book value, covering the regular dividend by 126%.
- Earnings per share were $0.55, driven by improved credit quality across the portfolio.
- Net asset value increased to $17.70, reflecting a 0.6% increase from the previous quarter.
- Gross originations during Q1 were $403 million, up 31% year over year, indicating strong investment activity.
- Credit quality trends showed improvement with 97% of the investment portfolio performing in line or better than expectations.
- Despite overall positive trends, the median portfolio company EBITDA decreased due to exits of higher EBITDA companies.
- Interest coverage has slightly decreased from around two times to between 1.8 and 1.9 times due to high base rates.
- Investments on nonaccrual represent 1.7% and 1.0% of the total portfolio at amortized cost and fair value, respectively, indicating some underperforming assets.
- The market environment remains competitive, especially with increased refinancing activity in the upper middle market.
- Total investment income slightly decreased to $74.5 million from $74.9 million in the previous quarter.
Good morning, ladies and gentlemen, and welcome to the Bain Capital Specialty Finance first quarter ended March 31, 2024 earnings conference call. (Operator Instructions) This call is being recorded on Tuesday, May 7, 2024.
I would now like to turn the conference over to Katherine Schneider. Please go ahead.
Thanks, Constantine, Good morning, and welcome everyone, to the Bain Capital Specialty Finance first quarter ended March 31st, 2024 conference call. Yesterday after market close, we issued our earnings press release and investor presentation of our quarterly results, a copy of which is available on Bain Capital, specialty finances, Investor Relations website.
Following our remarks today, we will hold a question and answer session for analysts and investors. This call is being webcast and a replay will be available on our website. This call and the webcast are property of Bain Capital, specialty finance and any unauthorized broadcast in any form is strictly prohibited
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