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.
