Business Development Corp of America
Business Development Corp of America — Investor Presentation (November 2018)
31 slides from Business Development Corp of America's investor presentation, Nov 29, 2018
Slide 1: Q3 2018 Investor Presentation
Q3 2018 Investor Presentation Q3 2018 Investor Presentation
Slide 2: Disclosures
Disclosures 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 pre
Slide 3: Today's Speakers
Today’s Speakers 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 2013
Slide 4: Table of Contents
Table of Contents Executive Summary Section I Overview of Adviser Section II Overview of BDCA Section III Strategic Initiatives Section IV Special Meeting 3
Slide 5: Executive Summary
Executive Summary
Slide 6: Executive Summary: Key Highlights
Executive Summary: Key Highlights New Investments • BDCA made $352.4 million in new investments in Q3 2018, including $188.1 million relating to the Triangle Capital Corporation (“TCAP”) asset purchase. 1 • BDCA has invested approximately $2.3 billion since November 2016. • Investments originated by
Slide 7: Executive Summary: Financial Results
Executive Summary: Financial Results ($in millions, where applicable) Q3 '18 Q2 '18 Q1 '18 Q4 '17 Q3 '17 Net Asset Value (NAV) 1 $1,460.8 $1,471.7 $1,472.6 $1,491.7 $1,483.5 NAV, per share $8.20 $8.20 $8.26 $8.30 $8.31 Net Investment income (NII) $25.8 $25.8 $26.2 $26.0 $26.5 NII, per share $0.14 $0
Slide 8: Executive Summary: Portfolio Activity
Executive Summary: Portfolio Activity ($in millions, where applicable) Net Investments Total Investments and Portfolio Yield Originations Paydowns/Dispositions Net Funding $400 $300 $352 $317 $3,000 12.0% $200 $248 $286 $275 $125 $2,458 $2,504 $2,524 $2,500 $2,500 10.0% $100 $-- ($100) ($200) ($300)
Slide 9: Executive Summary: Portfolio Breakdown
Executive Summary: Portfolio Breakdown Total Portfolio 100.0% 8.9% 9.3% 7.5% 8.1% 9.2% 90.0% 6.2% 6.8% 6.9% 6.4% 6.3% 2.9% 3.8% 4.9% 4.3% 5.4% 80.0% 11.4% 9.5% 9.0% 9.9% 10.9% 70.0% 71.0% 72.4% 70.9% 69.9% 68.2% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% -- Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q3 '18 First Lien Sec
Slide 10: Adviser
Overview of Adviser
Slide 11: Adviser: Benefit Street Partners' Transaction with Franklin Templeton
Overview of Adviser: Benefit Street Partners’ Transaction with Franklin Templeton 1 On October 24, 2018, Franklin Templeton entered into an agreement to acquire BSP, the parent of the adviser to BDCA. Overview ― Under the terms of the agreement, Franklin Templeton has agreed to acquire 100% of BSP’s
Slide 12: Adviser: Benefit Street Partners' Transaction with Franklin Templeton – $90 Million Investment
Overview of Adviser: Benefit Street Partners’ Transaction with Franklin Templeton 1 $90 Million Investment On November 1, 2018, Franklin Templeton and BSP made a $90 million investment in BDCA. The shares were purchased at BDCA’s NAV per share of $8.20. Together with BSP’s $10 million investment in
Slide 13: Adviser: Transaction Key Points and Impact
Overview of Adviser: Benefit Street Partners’ Transaction with Franklin Templeton 1 Key Points Impact of Transaction BDCA Officers No Change Investment Committee No Change Management Agreement & No Change Fees BDCA Strategy No Change 1 The transaction remains subject to customary closing conditions.
Slide 14: Adviser: Franklin Templeton's Global Platform
Overview of Adviser: Franklin Templeton’s Global Platform 1 Total Assets Under Management: US$717.1 Billion 2,3 Equity Fixed Income Multi-Asset/Balanced Alternatives 4 AUM: US$305.4 Billion US$258.9 Billion US$126.8 Billion US$16.7 Billion CAPABILITIES: • Value • Government • Income • Commodities •
Slide 15: Adviser: BSP Overview
Overview of Adviser: BSP Overview BSP is a leading credit-focused alternative asset management firm with over $26 billion in AUM 1 Assets / Committed Capital $26 billion 1 Under Management Investment Record 10 years 2 Dedicated Investment 105+ investment professionals Professionals Offices New York,
Slide 16: Adviser: BSP Platform
Overview of Adviser: BSP Platform BSP senior management team has worked together for 30 years BDCA Officers: Richard Byrne, Chief Executive Officer and President Corinne Pankovcin, Chief Financial Officer and Treasurer Leeor Avigdor, Corporate Secretary BSP Senior Management Team: Thomas Gahan, CEO
Slide 17: Adviser: BSP Private Debt Overview
Overview of Adviser: BSP Private Debt Overview 1 Direct Sourcing Model with Emphasis on Non- Competitive Lending • Dedicated 29-person private debt origination team focused on proprietary deal flow1 • Access to an additional 77 investment professionals to bolster proprietary sourcing infrastructure
Slide 18: BDCA
Overview of BDCA
Slide 19: BDCA: Investment Thesis
Overview of BDCA: Investment Thesis Focused on lending to middle market businesses, primarily in the United States BDCA seeks to: 1 Preserve and protect capital; Provide monthly cash distributions; and Generate capital appreciation, where possible BDCA Seeks to Provide: 1 2 3 Capital Monthly Cash Ca
Slide 20: BDCA: Portfolio Snapshot
Overview of BDCA: Portfolio Snapshot 221 Portfolio Companies $2.7 Billion in Total 79.1% Senior Secured 87.8% Floating Rate Assets 8.9% Weighted Average Current Yield on Total Portfolio 1 9.8% Weighted Average Current Yield on Income Producing Securities 1 Security Mix 6% 6% First Lien 9% Second Lie
Slide 21: BDCA: Credit Quality
Overview of BDCA: Credit Quality ($in millions, where applicable) At the end of Q3 2018, four legacy BDCA investments were on non-accrual with a cost of $116.2 million or 4.5% of the portfolio and a fair value of $43.4 million or 1.7%. 1 Five investments from TCAP were also on non-accrual with a cos
Slide 22: BDCA: Sources of Funding
Overview of BDCA: Sources of Funding ($in millions, where applicable) Bank Facilities 1 Citibank Wells Fargo $400mm Capacity $500mm Capacity $345.0mm $469.7mm Outstanding Outstanding L + 1.60% L + 1.65% to 2.50% May 2020 Maturity May 2023 Maturity Unsecured Bonds 1 Unsecured Bonds Unsecured Bonds Un
Slide 23: BDCA: Board and Management Team
Overview of BDCA: Board and Management Team Represents Independent Director BDCA Board of Directors Richard J. Byrne Lee S. Hillman Ronald J. Kramer Leslie D. Michelson Chairman Independent Director Independent Director Independent Director Edward G. Rendell Dennis M. Schaney Independent Director In
Slide 24: Strategic Initiatives
Strategic Initiatives
Slide 25: Strategic Initiatives: Key Strategic Priorities
Strategic Initiatives: Key Strategic Priorities Establish BDCA as a Best-In-Class business development company. Position BDCA for a liquidity event. Leverage Franklin Templeton and BSP origination platform 1 Optimize balance sheet Prudently invest capital Focus on governance Align dividend with earn
Slide 26: Special Meeting
Special Meeting
Slide 27: Special Meeting: Transaction with Franklin Templeton – Shareholder Vote
Special Meeting: Benefit Street Partners’ Transaction with Franklin Templeton 1 Shareholder Vote A Special Meeting will be held on January 11, 2019, commencing at 11:00 AM (EST) at the Harmonie Club, 4 East 60th Street, New York, New York. BDCA’s shareholders are being asked to approve a new investm
Slide 28: Special Meeting: Proposals & Board of Directors Recommendation
Special Meeting: Proposals & Board of Directors Recommendation The Board of Directors unanimously recommends a vote “FOR” the Proposals Proposal 1: Transaction with Franklin Templeton The Board unanimously recommends that you vote “FOR” the New Advisory Agreement Proposal to Approve the New Advisory
Slide 29: Special Meeting: Voting Information
Special Meeting: Voting Information VOTING OPTIONS MAIL: By mail by completing, signing, dating and returning their proxy card in the pre-paid envelope sent in the Proxy Statement. PHONE: By calling (800) 690-6903 with your control number available. INTERNET: By visiting www.proxyvote.com/BDCA. Ente
Slide 30: Risk Factors
Risk Factors The following is a summary of risk factors for Business Development Corporation of America. 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 adviser and its
Slide 31: Investor Relations contact and account information
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 www.bdcofamerica.com Shareholders may access their accounts at www.bdcofame
Business Development Corp of America — Investor Presentation (November 2018) on 6ix