BCSF - Earnings call transcript Q2 2020 | Bain Capital Specialty Finance, Inc.

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Operator

Good morning, and welcome to the Bain Capital Specialty Finance Second Quarter 2020 Earnings Conference Call. [Operator Instructions]. Please, note, this event is being recorded. I would now like to turn the conference over to Katherine Schneider, Investor Relations at Bain Capital Specialty Finance. Please go ahead.

Katherine Schneider

Chris. Thanks, and the Bain second everyone, conference Specialty to for call quarter welcome morning, Capital the Finance Good of XXXX. close, of a market and Specialty Finance's available after we website. earnings Capital our Yesterday, Relations press on investor Bain presentation of our copy results, Investor quarterly which is issued release

call we property expectations, hold available question-and-answer performance, is a the risks identified by forward-looking time and Bain actual will those Specialty could be materially differ center to no which not webcast, law. are indicated. our do Finance, unauthorized being analysts Factors uncertainties, Risk and cause Following this and which differ and Capital guarantee are will required include forward-looking statements made statements form broadcast remarks Form may for our statements and website. actual current Capital Specialty These in This materially. XX-Q so on future in today today, Any and from of do is call a at webcast Bain unless of are investors. obligation any This section any our based prohibited. strictly to that to replay update results any assumes results management Finance on

performance Dornaus. Ewald, President not and Sally and I'm our Lastly, Treasurer; Officer; Officer, Today past Boyle, Michael does Vice our guarantee Chief President by Executive joined results. future Michael and Chief our Financial

quarter. and overview that recent agenda actions for our capital of the Michael the results will took provide In call, the during we of terms Ewald first second quarter the an market

results investment portfolio, in discuss Boyle Mike greater quality credit our Thereafter, and Sally will financial detail. and

over the turn to Ewald. CEO, President I'll Michael our that, with and call So

Michael Ewald

all and and our Thanks, thank us safe hope We for Catherine. on And healthy. everyone is staying good joining morning, call. earnings you

better sheet the have strengthen environment be to Most our that the company's of we've April early largely marked The by in pandemic. these into nature Notwithstanding that businesses these environment positioning by will and businesses challenges we quarter. focus continues performance to to degrees, preservation by and future. through on arise. approach, COVID-XX to balance took due of results, our for owners sectors any actions. management a and cost-cutting the capital Capital over past preserve company's several unique results and Bain have believe or these the years. in high companies Credit's middle second could with emphasis for delaying conservatively Consistent positive We that several balance place can late indications, remain the at face, March we took actions the preparing portfolio better-than-expected economic challenges on be watchful teams positive market and prolonged encouraged time investment an impacted indications been driven unfortunately navigate disciplined attributed the the swift and the capital each by global to we viewpoint, quarter it extent to Nevertheless, across some the From current varying early to uncertainty recent been unknown. the position and jumping uncertain to take the and want market of second of I continues depending to the been the largely pandemic, company. discuss actions on business impacted the today type economy impact to our of be the be duration which Before on COVID-XX sheet

of a discuss call, by which later largely Boyle detail portfolio, rate assets both in industry portfolio senior geography. is will across first greater set lien Mike in and diversified companies secured floating comprised Our of investment this

balance a uncertain company transactions means the and providing focus capital financial quarter better company's ahead, our second it withstand markets sheet forward. exhibited during during Given to the the on significant the X we with flexibility markets and the volatility periods as in and volatile conducted of greater going QX strengthening positioning

proceeds stock a our $XX.XX we rights significantly common from the company's net we million. the a from of shares offering we the over were appreciate the approximately our XX X.Xx. support quarter transferable encouraged offering, of and First, offering, from shareholders. ending to brought for were leverage by strong approximately and per price issuing we're quarter-over-quarter, Total outstanding offering gross received secured Xx indebtedness share. proceeds that The $XXX approximately and demand used million at repay second X/XX at ratio the completed the We down had

notes principal a Second, aggregate XXXX. completed of issued of placement X.X% due private debt. amount unsecured $XXX million we The company

this debt a the company's size in our capital the the order on overall impact greater cost of offering the limited while cost borrowings our high stack. minimize of While compared other to gaining of in relatively liability flexibility is instruments, we to

used In to facilities. period notes the these repay debt our of limit addition, secured we with notes structured also on were a existing X-year notes sheet. only duration non-call the The proceeds the to of balance

we debt leverage neutral has on of ratio, the benefits repayment company's which under the it and company's significant are revolving the a to availability capital believe excess facilities, created While the effect resources company.

resources, demonstrate Our which benefits. during company access capital and to company's and debt these equity times broader relationships to Capital is from and exhibits testament markets platform, the ability Bain expertise the the the a to

portfolio of new we to believe support periods able result a balance stronger dislocation. the from take be investments and company extreme opportunistic sheet of market volatility the raised, a resulting and advantage As companies existing to capital has of

seek on activity of we loan and lenders, take conditions, new and terms opportunities to middle-market advantage quarters, levels remain completed transactions investment market below believe While improved under normal we structures. more significantly attractive and be will capitalize future volumes would in

Credit group's sits private benefits global Bain from BCSF origination and our platform, within Importantly, platform relationships. our credit and Capital broader

financial turning quarter. results our Now second to for the

per Subsequent annualized payable a date This on can income the to of for of as dividend share. was our ending taking from quarter XX. equal yield foreseeable portfolio, compared asset Our was per quarter-over-quarter this attributes dilution represents future. holders dividend net the to account as June $X.XX share Net XX, of an per investment the September third end, our maintained share share Board record XXXX. to for $X.XX book $X.XX quarter current to QX declared on the impact quarter rights be the flat Based value value dividend into offering. after per we believe X.X% the level of

As per ending to last share compared quarter. NAV adjusted of $XX.XX June XX, $XX.XX per share, was an

witnessed whole. as though, during saw Overall, nonaccrual. as with remained no in quarter on decline performance in broad-based the tightening second year our financial line well reference but the budgeted decreased During investments quality our spread markets placed portfolio expectations, across stable also versus the broader credit results prior quarter initial we as a with the economy in new

value, through at philosophy, during long-standing driven portfolio downside-protection companies As of preservation expertise investing by of We with the just company X% our our strategy, having amendments we've June our our investment XXX these portfolio in and manage team's place the with structures. across representing the inception, credit current witnessed provide in of the total foundation at the many we tenants to worked environment. the of several the strong core portfolio out on believe middle-market our X in investment solid benefit of as of XX, is which a we structures companies. is nonaccrual. quarter since We history was portfolio, Capital investment fair quality in capital believe and leveraged followed

in placed meant, identify we when years, covenants an table the control financial that us loan order the helps maximize outcomes. on with and Over at us early aren't and expectations emphasis investment legitimate strong seat gives have voting documentation issues a to

required of at trade-off typically us additional covenants. order periods quarter. focus private on We well in in our value. resources, favoring also will us that businesses short-term these equity liquidity believe portfolio various result our preserve which navigate and/or volatile in outcomes professional serve signs a relief a well weakness, macroeconomic governors continue as new management are sponsored-backed the equity Furthermore, such both as by amendments oversight liquidity second periods the therefore to executing exchanging to them quarter stronger covenant served ahead. to risk/reward companies this did of into early across given increases we our rate to as better-align and we alignment one-time injected ongoing number fees the attributes These sponsors for through equity economics, guide and We of position in introduction private

investment within private our global of professionals is at credit full work the XX our efficiently most team with group remotely. to operating team Finally, of capacity continuing

Credit's in over situations need experiences Capital in Mike might in owning we will deploy our will the expertise managing Bain In believe role shy special needed, team. a and future. the investment and away environment this a and portfolio benefits Treasurer, a detail. our where us competitive set through as advantage to with our situations to dedicated from is a XX% within greater addition provides and to more it and deep we as the take distressed from turn now company company current key portfolio active the the President to call of resources walk team, in Vice not We I Boyle, to

Michael Boyle

of portfolio provide morning, everyone. update Mike. our our investment were quarter, second and with on investment underlying quality. activity Thanks, quarter and this new credit Good the $XX kick portfolio in In different million, fundings an then majority I'll to it $XX off repayments driven of and these companies the industries. companies. repayments fundings XX The revolving credit XX facilities. existing portfolio operating across totaled were by primarily million Sales

balance adequate XX% XX. approximately of the high on an in investment funding of environment. of $XXX of onto $XXX approximately companies repaid million As our quarter. their quarter, as the March across capacity of we earnings The these some facilities of call, discussed XX% second a see we against our and facilities of light defensive pleased revolver these At X.Xx. secured to sheet June brought an the as a consisting of to BCSF as approximately commitments, liquidity, in measure on representing March undrawn in utilization requests coverage revolver of was our uncertain of were had increase as undrawn market portfolio during our facilities XX end We cash QX many cash million experienced as compared of

As of was portfolio XX, was of investment $X.X the billion, from and fair June value unchanged prior the our quarter. relatively

lien the should XXX XX% XX% meaning X% performance invested The remaining first X% than company on of X% represent top highly including our is unique that of X% equity. debt. a common X% of portfolio significant of XX fair equity overall. investments value lien preferred diversified, at less debt, companies. The the was second investment the out of and comprised Our in debt, comprised impact was no single have debt, in lien in portfolio first subordinated portfolio last exposure, in

which we documentation we mentioned call, focused maintenance as portfolio our key EBITDA strong As puts on XX% across of was our rights, investments and the strong are have in as our protect in investments control control earlier Mike have they covenants of position Ewald voting to loan downside ways as debt drive of companies Over The lenders. $XX financial million our effective which a in us XX. and June median outcomes.

leverage quarter-over-quarter, stable by point metrics were as on debt dollar our prior investments portfolio end. last at unchanged attachment which the companies represented from our Our was at our quarter X.Xx,

industries. across Our different XX portfolio is comprised of investments

Our top sectors, defense as health are and such and X industries care. technology, defensive aerospace

end-markets aviation maintenance revenue outside majority but to that liquidity moderate these investments and While seen closely. defense that these portfolio and have suppliers health COVID-XX. this our monitor solid a within to has companies portfolio diversified portfolios a and have of The sufficient by sector our our been impact aviation, portfolio exhibited all Currently, suppliers defense helped offset we which impacted runway, serve because and continue has in technology includes pressure. companies has performance. care sector is government Aerospace of

is single-industry that the these energy, rates. XXX largest debt are is exposure falling cyclical decrease include was amortized LIBOR are with exposures our X%. our floors, help The hotel to COVID-XX floating comprised transportation cost primarily by sectors by and investments and average decline of to points yield rate most rates The of The Our portfolio within during gaming significant the LIBOR of X.X% LIBOR portfolio as lower majority quarter. X-month quarter which consumer low. compared LIBOR less prior of the impacted loans than leisure. X.X% basis These with industries at currently end. weighted rates The of mitigate driven as these was

company to declines underlying performance. part encouraged credit the due earlier highlighted better-than-expected we swift call, measures and offset portfolio have to quality recent on cost-cutting Mike months in been Turning in revenues. Ewald helping by performance to in

remaining domiciled portfolio diverse, Our the and of is outside the the U.S. U.S. of XX% our geographically XX% with investments invested in

Europe in in our reversing trends footing. solid portfolio. and We has on witnessed Australia served portfolio investment have sooner a our U.S., diversifier We the this is believe than as and positive in

to our rating transparency debt into payments highlighted quarter, and framework As individual various risk greater employ we the investment. loan to status such trends we last risk factors with around business our takes This performance, portfolio provide company an internal due. framework and shareholders consideration of covenants and profile of interest as compliance industry

quarter-over-quarter. conservative to we were global identify reflection approach of We companies overall impacted believe might be early is of Our light trends a on our stable potential risk-rating the took portfolio that in pandemic. this

above the investment had investment or at to an representing that rating relative portfolio As of expected X, performing value of June of the expectation internal XX, either time fair XX% of the as is or risk underwriting. X

believe spread approach we we of uncertain the our markets of retraction environment. tightening period, light the in an during While in we conservative took witnessed overall reference the

may of include a the value a at X company's industry. XX.X%, impacted March portfolio that expectations, rating certain end portfolio their or that underwriting the X, the June These is was the in companies XX there investment below significantly in result end of value the as our trends portfolio performing investments a indicates more average risk which of and being concerns of as quarter, have was XX.X%, second categorized on the performance X investment segment about As to market up a result, as COVID-XX. basis and weighted At of quarter rating the be fair as XX.X% approximately mark of XX. points XX, the fair from

mark portfolio an transactions. there average increased X, indicating performing view our those of was is Just as weighted and XX% of X.X% was the investment principal that to June par investments The X rating underwriting risk below categorized value risk risk total and of a rating in investment recovering fair of materially we as be XX. X for expectation,

debt situations in where of rating a to well-positioned means sit with of This in is is structure, portfolio or maximize event lien of the of value second restructuring. capital X.X% Importantly, the list of the top the recovery watch X. our only X comprised a risk that we primarily at

new overall investments no quarter, to the reflecting added During stability. were status, credit nonaccrual

As investment on detailed financial Sally June X of a of portfolio at XXXX, were our fair value. status, of total XXX now portfolio X% will XX, the nonaccrual out more provide companies representing review.

Sally Dornaus

compared quarter good decrease I'll and as quarter. income to XXXX, the X Thank million XX, a months of results statement. primarily you, start $XX.X was XXXX driven by the March $XX.X income income Mike, second in with Total months decrease ended our LIBOR review due X to XXXX. in ended morning, the interest our was everyone. investment June XX, The million over income investment mainly a decrease the for in for

to $XX as quarter is expenses. opposed to life in second expenses income income discount, million to $XX the loan interest investments. million the operating accounting to million was lower the $X.XX lower for or per amortize of investment on and the for debt LIBOR The prior fees referred OID, compared compared upfront. which take quarter $X.XX Our in was financing by of $XX.X fees per comprised quarter. fees first in or to structuring cash-paying the as quarter. we or Net decrease other decrease new the expenses approach interest is driven share This over a the original due the share investment as and were to as or million the conservative taking $XX.X contractual for Total recognizing quarter primarily income. We issue commitment

financial stayed quarter-over-quarter XX, relatively June a attributed and XX% COVID-XX portfolio spread largely companies. flat approximately to fair of to value offset certain was portfolio on This our percentage investment the as portfolio mark quarter, decreased at This due investment of our broad-based tightening XXXX. notional as for across performance by

being of market reviewed review As of We we third-party during prior especially employ layers illiquid believe provide quarter. increased we independent have on each these volatility. investments additional discussed with robust XXX% framework periods valuation valuation best-in-class calls, processes, for earnings by provider of an a

company June June $X.XX X ended XX GAAP share. per months X gains XXXX, per of XX, million. net for the was share and realized During income the $X.X the ended had unrealized months

to over Moving balance sheet. our

XX, net investment totaled total As June value June Total fair billion $X.X assets assets were at portfolio our billion and of billion. as of $X.X of $X XX.

at indebtedness As used QX, $XXX.X down million the XX.X was and proceeds price At issued Mike gross call, proceeds company's brought were and ratio in to shares transferable net to Ewald compared connection the leverage of stock this, with of June. $XXX.X earlier outstanding in ending the ratio quarter-over-quarter. $XX.XX significantly we common a In and were share. per million our we offering QX. highlighted of the repay completed respectively. The end of rights offering X.XXx a million from end X.XXx the at net debt-to-equity Total

Our debt of at compared balance was net believe which ratio, the as to We QX outstanding improvements principal X.XXx of end significant leverage end to quarter-over-quarter. QX. at are these the less sheet X.XXx our represents cash,

XX the the NAV offering per presentation XX. including earnings quarter-over-quarter, approximately flat the was change, per QX share was a share in per pro forma was our our $X.XX of net NAV the investor share, NAV through $XX.XX as this effect, $XX.XX rights this of The ending bridge, factoring issuance dilution walk rights impact offering. to share. ending the After of $XX.XX. shares adjusted common provides bringing of impact you at per Our March March To in NAV

overall to as we used compared cost repay debt issuing notwithstanding of unsecured minimized of the The liability through high company of flexibility in relatively an overall XX% million significant of proceeds secured represents issued our a June the billion just as XXXX. the have capital on debt impact debt facilities, of believe structure $X.X XX. notes. Furthermore, outstanding principal debt due its facilities, notes gained to these amount completed the unsecured debt existing we financial principal During company's X.X% significant to size June, offering of we the $XXX were the aggregate not our month The of offering borrowing. June secured

debt and bilateral structures. credit comprised CLO secured securitization outstanding remaining facilities was Our of

Our in maturing for and XXXX structures in provide CLO long-dated durability structures and periods volatility. of XXXX, are

for the which adviser, June of In increased debt company loan from of flexibility, was $XX million structures, these to providing drawn financial has addition as unsecured XX. a its none

liabilities LIBOR XXXX, X was resets provides for weighted weighted debt us. compared interest for that weighted company further occurred average rate on average as our outstanding months debt, XX, margin ended Pro XX, with for during rate our as reduction the cost the of the QX, in the June resets, net X.X% X.X%. For the between majority assets ended benefit LIBOR the debt these and In forma X on to seen March the XXXX. by a we contain investments our is approximately our This have outstanding quarter. of X.X% interest driven average a interest months the

As cash and cash equivalents $XXX.X and of million credit capacity facility. had million $XX.X of under the June company XX, its aggregate of

the As all to back with the was over compliance in of its facilities. under that, closing secured will for I XX, remarks. credit Mike With turn June XXXX, company terms call

Michael Ewald

lien in structures Credit portfolio us of current pleased portfolio and risks to the strong reflected our by expertise companies believe highly any manage provides challenging in in to the through senior multiple loans We're BCSF, environments. a a positioning diversified and Ally. set this long-standing been Since Furthermore, defensive foundation leveraged the market downside first high results economic and Capital environment. deliver percentage conservatively, the companies has as Bain to of inception capital investing industries. shareholders, secured backdrop. our the history notwithstanding solid Thanks, of to We we've continued with

managing Finally, capital line we in open appreciate drive the returns. support questions. please from our for Chris, attractive to our shareholders investor risk-adjusted the

Operator

Instructions]. [Operator

of from question Fargo. Finian first Our is O'Shea Wells

Finian O'Shea

as X/XX. effectively that quarter impact. earnings know right spill LIBOR now. your locked that's I any floor side is The X/XX there the rates give for then, Can next headwind the for weighted what on average? a nuances what impact? than in your much to is lower question million First LIBOR and to have And your borrowers going out you number on

Michael Boyle

good Thanks the and Sure. morning. questions, for

be a that So of different the is driven while borrowers is X% be the European X% floor our EURIBOR having weighted floor, points. portfolio off average floor. of borrowers LIBOR majority by XX basis that And set or about a majority our LIBOR vast the the a would across might U.S. having of rate

Finian O'Shea

Okay.

are on impact? there is sorry, of line woods -- mostly the the out So top you

Michael Boyle

Yes, right. that's

of of those that the highlights, the floor So X/XX. is as we hitting impact of quoted, most yield their

Finian O'Shea

reported XX% Okay. for far. question lower And on of you've so then looks like just end recovered definitely quarter which markdowns, on first is It of a about Michael. -- the who's

You've no had also nonaccruals.

responsible in things this could aspect. commentary own book? that that's So color and/or your I would understanding ask extent look on for you others stable underlying provide. your the report, there portfolio valuation delta, pretty performance driving for only watched that to Any you've you're But any

Michael Ewald

companies. back XX single X at XXX much our points XX change, wouldn't really you And of the important determinant asked. end individual we NAV of have on out every underlying company, glad end process moving you know portfolio. up, to that change that X highlighted focus for risk third-party Having I rating quarter. no companies. as out vigorous by Sure, it's as QX I aggressive terms the you valuation Sally a the pretty to And there. having every that were probably will in a that probably roll marks the where companies Today, a Clearly, well investment one But think a down, use well. that at as every we credit an reviewed I of remarks her well, there. still couple proxy know on probably on about think quarter, our is the model Fin. will are in And there, quality. there's Obviously, We up quarter focus all shake ratings of good of performance flat, and across very too percentage of

X companies. think quarter-on-quarter. And is on that X I are grading point but left, still came risk And it's X there then there's X or XX out. X just or nonaccrual, X change in, no as you still or

think performance of generally worse year-end high you is think at is a true. here expected better about the few I got feared if performance absolutely suggested from determinants, One good a about the there's tightened, performance talk But than I we've up is level, been would the been, But spreads news how a right? So was of X/XX. think on XXXX, and quality have point And year end out consistent is I'd speaking, what different markets QX have it generally of at that down. portfolio across yes, reference based So end based QX of across would and are companies are that's overall portfolio. was where lot other again, points budgets XXXX, here. than it's beginning on last

Our credit flat. quality, was though,

had not up double. our X%. pretty a book of not some market is our And was where if double. I flat that with economy think value continued value value, book Yes, today. quarter And this stand evaluation here, we seems in uncertainty the be had all things sober It's so reasonable. like we flat you value nonaccruals certainly It's Xs book together, our like put having

Operator

question Lynch next Ryan is of from The KBW.

Ryan Lynch

of I to pretty down borrowers sales lot kind who a drew like repayments to a sales regarding the surprised quarter the looks the As and your well repayments activity robust significantly. that commitments see activity little BDCs this in unfunded pretty delever, they of look I had repaid at was investment actually look quarter, as dropped some as those. as guys'

any low level the commentary quarter? sales So could provide really was what this you in driving of repayments and on

Michael Ewald

get what Ryan. comments, too. is I front, question, will on Thanks. mean, in jump I'd the to we right? Good sales Mike will, a guess repayments sure Yes. couple and here, lot I we're going would I'm The the determine that out do make and always when But of can't point I repaid of get. -- we a repayments

because M&A participate we sold. out We in lot muted change didn't their activity, And of you facilities. of hands strategic portfolio can. a pay Our and off, pretty therefore, are until buys companies not maybe old sort or being may was role any companies pay there see

So, we volume. has didn't lot a really historically which driven of see that, our repayment

where mentioned the Mike up so thing, with down we some of I other to Boyle statistic revolver we see was, the did come to draws XX% that's did see where The XX%. think or QX, since end

and things drawn loans that. couple the a investment So cash repayments, there actually had -- couple were of that the And like get some action. holds because acquisitions too that come paid term basis just wasn't of of front, companies you we a are the saw think of system. on had net delayed opportunistic were I true some draw repayment to make and that sorry, But that some our much portfolio there back we on that new front to where try a

into So platforms of activity, But a because BDC that again, we either. made. investments you what that's drove lot of the came a lot that new didn't see M&A whole really new the muted there's

Ryan Lynch

companies usually amendments, short-term just additional but Were as capital quarter? contributed a either Can then then this additional covenant percentage the Okay. equity sponsor? part or you quarter. of amendments by accompanied release, those fees them the amount had And any amendments mentioned mentioned you by gave of that got of as terms. this portfolio those the you several Understood. quantify you of made you in amendments And absolute portfolio you or dollar

Michael Ewald

Yes.

a market about X% companies, portfolio, the of signed of was at represents -- where was level look, cost. I So and our amendment some we value it XX flavor. high believe our Together, XXX it companies of out both that fair

a in terms in think, I stats been of sense. those know level high may you trying how -- to front I'm terms have contributions, individual you Mike, gives that have in deals, of of And many you if don't So cetera. equity et

Michael Boyle

Yes.

So came equity half in dollars those sponsors. of from more incremental coming with than

portfolio. support been continued have the we with pleased across sponsor the So

Ryan Lynch

one Okay. last And then one. just

your unsecured relative of did portfolio to -- capital you mid- structure, XXs. X.X% costs, offering. relative You very yield I guys to kind rights obviously made doing significant of consider would the also -- high the But on your note, changes what guys the the

So surprised little to cost that I was a debt. see on the

point? current So downturn the kind can cost? behind of that high at manage unsecured do need about feel the notes well you this was you as how this through structure through As walk to your just and what a we capital through the look at of weather of forward, issuing composition

Michael Boyle

Sure.

order we flexibility did sheet, wanted a debt across issue to as And our we environment. in in restructurings portfolio. that durable particularly So greater decide some be that provide to capital structure at our we million in that unsecured balance would look $XXX potential

Although whole entire weighted the added basis of it about liked than was cost the we have across cost average points higher XX to capital, cap cost the would across of debt the stack.

capital we So right note were investing unsecured right incremental think continued stack. in for. how stacked do think in. up relative we're were to have that we -- that in was that the debt we we the as a a commitment to environment our the it looking move long-term we value -- to having that issued And is thoughtful drive there's to continued we assets the when But that

we So cost future, a the today, financing than continue have to in at historically. that is that although way lower we of it's XX% will think tap albeit

Operator

of is question Hewett America. of Bank Derek from Our next

Derek Hewett

AFFE? on any areas for point? yesterday's at sense And there are rules this have you SEC would other make on do Michael, where industry the announcement high-level potential new thoughts

Michael Ewald

the to Derek, speed think a -- little thanks on to learned. lot a Hey, that. get bit. still be look, And trying I we're to there's up it for Yes, still

right the step the I which I better. to good to get in the a for get making on in in think I'm limitation. handle that around trying is trying think terms it or direction easier on institutions Clearly, BDC -- What we're invest to XX% news. space, more handle it's of is is think a what a I

unclear it's behavior think that invest I more what passive XX% extent. going to It's to are there. the see more. more that governor ones positions how are sure ones more in active index-related, very BDCs, not end I'm with think Certainly in that different So could start well institutional whereas that drive indices I to up limitation the to in treating taking BDCs

think. So we've here, comment XX-day a I got period

it'll opinion point someone still develop we'll an So posted. but see at as that interesting here, well. sure what to of some sort are to I'm offer trying get to be comments

In terms of of that's other rules, there's really kind of us. mind not for much front

being We BDCs rather go to allowed leverage are than certainly X:X. to favor in of X:X

FFE looking was I big were that think thing NSA that other one the at. the we

one there's I that's shakes for So don't front out. how beyond us seeing else of immediately this think anything mind

Operator

appear back have ahead, I that sir. Ewald Instructions]. turn like comments. over the Please closing to we questions. conference no for would to further I [Operator go Michael Mr. his

Michael Ewald

call joining the thanks, with and out, we're and point. everyone, on Thanks, our at for shook on quarter how us looking Chris, much. Cheers. moving Great. today. QX pleased this very Again, Thanks to very

Operator

much, very you that Ladies conference concludes attending Thank then for gentlemen, Thank today's you and sir. this presentation. call.

disconnect. now may You

Bain Capital Specialty Finance (BCSF) 9 Aug 202020 Q2 Earnings call transcript