Business Development Corp of America
Business Development Corp of America — Q1 2017 Earnings Presentation
27 slides from Business Development Corp of America's earnings presentation, Jun 5, 2017
Slide 1: First Quarter 2017 Investor Presentation
First Quarter 2017 Investor Presentation
Slide 2: Disclosures
Disclosures 2 This presentation was prepared exclusively for the benefit and use of Business Development Corporation of America (“BDCA”) investors to whom it is directly addressed and delivered and does not carry any right of publication or disclosure, in whole or in part, to any other party. This p
Slide 3: Disclosures
Disclosures 3 AUM refers to the assets under management for funds and separately managed accounts managed by Providence Equity Partners L.L.C., Pr ovidence Equity Capital Markets L.L.C. (“PECM”), Benefit Street and Merganser Capital Management, LLC (collectively, “Providence”). For private debt fund
Slide 4: Today's Speakers
Today’s Speakers 4 Richard J. Byrne Chief Executive Officer and President of BDCA Richard Byrne is President of Benefit Street Partners and is based in our New York office . Mr . Byrne is also Chief Executive Officer and Chairman of Benefit Street Partners Realty Trust, Inc . Prior to joining BSP in
Slide 5: Table of Contents
5 Executive Summary Section I Overview of Adviser Section II Overview of BDCA Section III 1Q17 Financial Update Section IV Strategic Initiatives Table of Contents
Slide 6: Executive Summary
6 Executive Summary • For the quarter ended 3/31/17, NII was $0.15 per share or $26.8 million, vs. $0.15 per share or $27.2 million for the quarter ended 12/31/16. • NAV was $8.52 per share at 3/31/17 vs. $8.62 per share at 12/31/16. • Dividend remained unchanged at ~$ 0.22 or $38.2 million per quar
Slide 7: Section I - Overview of Adviser and Benefit Street Partners
7 Section I - Overview of Adviser and Benefit Street Partners L.L.C. (“BSP”)
Slide 8: Benefit Street Partners at a glance
8 Assets / Committed Capital Under Management $20 billion 1 Investment Record 8 years 2 Dedicated Investment Professionals 90+ investment professionals Offices New York, Charlotte, Houston, Providence Investment Strategies Private Debt /Opportunistic Credit Long - Short Credit Long - Only Credit Com
Slide 9: Overview of Adviser: BSP Platform
Section I - Overview of Adviser: BSP Platform 9 Established , high - quality institutional infrastructure to support all credit activities Extensive networks and expertise across numerous sectors; Direct origination and research capabilities Seek to achieve downside protection through lien protectio
Slide 10: Direct Sourcing Model with Emphasis on Non-Competitive Lending
10 Direct Sourcing Model with Emphasis on Non - Competitive Lending ▪ Dedicated 22 - person private debt origination team focused on proprietary deal flow ▪ Access to additional investment professionals to bolster proprietary sourcing infrastructure ▪ Prioritize “strategic” non - competitive lending
Slide 11: Section II – Overview of BDCA
11 Section II – Overview of BDCA
Slide 12: Overview of BDCA: Investment Thesis
Section II – Overview of BDCA: Investment Thesis 12 ▪ Focused on lending to middle market businesses, primarily in the US ▪ 3 primary objectives 1 : - Preserve and protect capital; - Provide attractive and stable cash distributions; and - Generate capital appreciation, where possible Note: 1 There i
Slide 13: Overview of BDCA: Portfolio Snapshot
Section II – Overview of BDCA: Portfolio Snapshot 13 » 138 Portfolio Companies » $2.5 Billion in Assets Under Management (1) » 9.8% Weighted Average Current Yield (2) » 79.6% Senior Secured » 93.3% Floating Rate Source: SEC filings as of 5/11/2017. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF F
Slide 14: Overview of BDCA: Industry Diversification
Section II – Overview of BDCA: Industry Diversification 14 Source : SEC filings as of 5/11/2017 Diversified Investment Vehicles Aerospace & Defense Health Care Providers & Services Diversified Consumer Services Hotels, Restaurants & Leisure Business Services Internet Software & Services Health Care
Slide 15: Overview of BDCA: Portfolio Activity
15 ($ in millions, where applicable) Source: SEC filings as of 5/11/2017. 1 Excludes follow - on investments, new investments are shown at cost. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS OF THE ENTIRE INVESTMENT . Secti
Slide 16: Overview of BDCA: Portfolio Composition
Section II – Overview of BDCA: Portfolio Composition 16 BDCA portfolio has moved up the capital structure with 79.6% of the portfolio in senior secured investments Security Q1 20 15 Q2 20 15 Q3 20 15 Q4 20 15 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 First Lien 51.5% 54.4% 58.5% 60.8% 62.7% 64.9% 64.8
Slide 17: Overview of BDCA: Distribution History
Section II – Overview of BDCA: Distribution History ▪ Since inception, BDCA has paid out an aggregate of $ 4.69 per share of distributions. Source: SEC filings as of 5/11/2017 . PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS
Slide 18: Overview of BDCA: Net Asset Value Per Share
Section II – Overview of BDCA: Net Asset Value Per Share 18 Source: SEC filings as of 5/11/2017 PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS OF THE ENTIRE INVESTMENT . Net Asset Value Per Share $9.63 $9.69 $9.81 $9.86 $9.8
Slide 19: Overview of BDCA: Financing Sources
Outstanding Debt Note: JPM Prime Brokerage Account opened in Q1 2017 Section II – Overview of BDCA: Financing Sources 19 Source: SEC filings as of 5/11/2017 Citibank $400mm capacity $316mm outstanding LIBOR + 1.70% June 2018 Maturity Wells Fargo $400mm capacity $298mm outstanding LIBOR + 1.75% to 2.
Slide 20: Overview of BDCA: Board and Management Team
31 Section II – Overview of BDCA: Board and Management Team Richard J. Byrne Chief Executive Officer and President Richard J. Byrne Chief Executive Officer Ronald J. Kramer Independent Director Leslie D. Michelson Independent Director Randolph C. Read Independent Director Corinne D. Pankovcin Chief
Slide 21: Section III – Q1 2017 Financial Update
21 Section III – Q1 2017 Financial Update
Slide 22: 1Q17 Financial Update: Financial Highlights — Quarter
22 Section III – 1Q17 Financial Update: Financial Highlights — Quarter ($’s in thousands, where applicable) Source: SEC filings as of 5/11/2017. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ANY INVESTMENT INVOLVES SIGNIFICANT RISK, INCLUDING LOSS OF THE ENTIRE INVESTMENT . 1 Deb
Slide 23: 1Q2017 Financial Update: Credit Quality
▪ The Company had six portfolio investments on non - accrual status as of 1Q 2017 and 4Q 2016 ▪ Non - accruals represent 5.6% of cost of investments and 2.3% of fair value of investments ▪ During the quarter, Miller Heiman was restructured and therefore removed from non - accrual status and Avaya wa
Slide 24: Section IV - Strategic Initiatives
24 Section IV - Strategic Initiatives
Slide 25: Strategic Initiatives
31 Section IV - Strategic Initiatives 25 BSP Origination Platform ▪ Leverage breadth of BSP platform to originate n ew investments with attractive risk - adjusted returns ▪ SEC exemptive relief allows BDCA to co - invest with other BSP funds Deployment of Capital ▪ BDCA deployed approximately $470 m
Slide 26: Risk Factors
The following is a summary of risk factors for Business Development Corporation of America . Risk Factors 26 • You should not expect to be able to sell your shares regardless of how we perform . • If you are able to sell your shares, you will likely receive less than your purchase price . • Our advi
Slide 27: www.bdcofamerica.com
27 www.bdcofamerica.com ▪ For account information, including balances and the status of submitted paperwork, please call Investor Relations at (844) 785 - 4393 ▪ Financial Advisors may view client accounts, statements and tax forms at www.dstvision.com ▪ Shareholders may access their accounts at www
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