trending Market Intelligence /marketintelligence/en/news-insights/trending/DQh4CLfRS5QoSchnzRCfZA2 content esgSubNav
In This List

Bain Capital Specialty Finance completes $501M term debt securitization

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Bain Capital Specialty Finance completes $501M term debt securitization

Bain Capital Specialty Finance Inc. completed a $501.0 million term debt securitization Aug. 28.

The notes offered in the transaction are secured by a diversified portfolio consisting primarily of middle-market loans and participation interests in middle-market loans, mainly senior secured loans.

The transaction was executed through a private placement of $222.5 million of AAA class A-1 notes, bearing interest at the three-month London interbank offered rate plus 1.70%; $50.8 million of AA class A-2A notes, bearing interest at three-month Libor plus 2.70%; $13.0 million of AA class A-2B notes, bearing interest at 4.23%; $30.0 million of A class B notes, bearing interest at three-month Libor plus 3.60%; and $32.5 million of BBB- class C notes, bearing interest at three-month Libor plus 4.75%.

The debt securitization was issued through BCC Middle Market CLO 2019-1 LLC, a Cayman Islands limited liability company and Bain Capital's wholly owned and consolidated subsidiary, and BCC Middle Market CLO 2019-1 Co-Issuer LLC, a Delaware limited liability company.

The co-issuers incurred in the transaction class A-1L loans worth $50 million.

Bain Capital has held 100% of the membership interests in the issuer since the latter's formation June 21. The membership interests do not bear interest and will have a nominal value of about $102.3 million at the closing of the collateralized loan obligation.

The debt is set to mature Oct. 15, 2031.

Bain Capital used the loan proceeds to prepay a portion of its outstanding advance under the BCSF I revolving credit facility and all the outstanding advance under the BCSF II-C revolving credit facility, thereby terminating the BCSF II-C revolving credit facility.