Bain Capital Specialty Finance, Inc. (NYSE:BCSF) Q3 2022 Earnings Conference Call November 10, 2022 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

Paul Johnson - KBW

Operator

Good day and welcome to the Bain Capital Specialty Finance Third Quarter Ended September 30, 2022 Earnings Conference Call. Today's conference is being recorded.

And at this time, I'd like to turn the conference over to Katherine Schneider from Investor Relations. Please go ahead.

Katherine Schneider

Thanks, Cecillia. Good morning and welcome, everyone, to the Bain Capital Specialty Finance third quarter ended September 30, 2022, conference call. Yesterday after market closed, we issued our earnings press release and investor presentation of our quarterly results, a copy of which is available on Bain Capital Specialty Finance's 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.

Any forward-looking statements made today do not guarantee future performance and actual results may differ materially. These statements are based on current management expectations which include risks and uncertainties which are identified in the Risk Factors section of our Form 10-Q that could cause actual results to differ materially from those indicated. Bain Capital Specialty Finance assumes no obligation to update any forward-looking statements at this time unless required to do so by law. Lastly, past performance does not guarantee future results.

So with that, I'd like to turn the call over to our CEO, Michael Ewald.

Michael Ewald

Thanks, Katherine. Good morning and thank you all for joining us on our earnings call. I'm joined again today by Mike Boyle, our President; and our Chief Financial Officer, Sally Dornaus. I'll start with an overview of our third quarter ended September 30, 2022, results and then provide some thoughts on our performance, the overall market environment and our positioning. Thereafter, Mike and Sally will discuss our investment portfolio and financial results in greater detail.

Yesterday, after market closed, we reported third quarter net investment income per share of $0.53, driven by very strong levels of income earned from our portfolio investments during the quarter. For Q3, net investment income return represented a 12.4% annualized yield on book value and covered our dividend by 156%. This is the highest quarterly level at NII that we have earned since our inception. The significant growth in our NII this quarter was driven by the benefits of rising interest rates, higher income related to fees earned on certain new originations and greater dividend income related to an equity co-investment payoff.