Investor Presentaiton

ENDNOTES Indices Information 1. 2. 3. 4. 5. 6. The S&P/LSTA Leveraged Loan Index (LSTA) is a daily total return index that uses mark-to-market pricing to calculate market value change. The LSTA tracks, on a real-time basis, the current outstanding balance and spread over LIBOR for fully funded term loans. The facilities included in the LSTA represent a broad cross section of leveraged loans syndicated in the United States, including dollar-denominated loans to overseas issuers. The London Inter-bank Offered Rate (LIBOR) is the average of interest rates estimated by each of the leading banks in London that it would be charged were it to borrow from other banks. LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate that some of the world's leading banks charge each other for short-term loans. The Secured Overnight Financing Rate (SOFR) is a secured interbank overnight interest rate. SONIA is a reference rate based on actual transactions and reflects the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions and other institutional investors. These indices may not necessarily be indicative of the investment strategies for the investment vehicles advised by Bain Capital Credit. Assets and securities contained within indices are different than the assets and securities contained in Bain Capital Credit's investment vehicles and will therefore have different risk and reward profiles. Prospective investors should note that there are significant differences between the investment vehicles advised by Bain Capital Credit and the investments included in the various indices described herein. The investment vehicles advised by Bain Capital Credit will not necessarily invest in any of the investments that are included in an index, and may invest in types of investments not included in any index. The investment vehicles advised by Bain Capital Credit may have higher levels of risk, including through the limited use of leverage and concentrated positions, and volatility. The returns of the indices are provided solely as an illustration of the market and economic conditions generally prevailing during the periods shown. Indices are not investments, are not professionally managed and do not reflect deductions for fees or expenses. It is not possible to invest directly in an index. Investors pursuing a strategy similar to an index may experience higher or lower returns and will bear the cost of fees and expenses that will reduce returns. Glossary of Terms 1. 2. 3. 45 4. 5. 69 7. 8. 9. 10. Bank Loans: Loans originated by banks and other financial institutions. These loans may include term loans and revolving loans, may pay interest at a fixed or floating rate and may be senior or junior. High Yield Debt: High yield debt is corporate debt that is generally rated below investment-grade by one or more nationally recognized rating agencies. These investments have greater credit and liquidity risk than more highly rated debt obligations. Structured Products: Structured products are derivative securities that are generally linked to underlying assets. Structured products typically consist of equity or debt securities issued by a private investment fund that invests, on a leveraged basis, in the bank loan, high yield debt or other asset groups. Total Return Credit: Invests in liquid bank loans and high-yield bonds, structured credit, middle market direct lending, and special situations opportunities. Direct Lending: Direct lending is providing loans to companies directly, without using intermediaries, such as a bank. These investments are often negotiated directly with the company itself, with a private equity sponsor, or with another third party, as applicable. Investments at Fair Value: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Unfunded Commitments: Unfunded commitments are related to financial instruments with off-balance sheet risk in the normal course of our business to fund investments and to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized on the statements of assets and liabilities. Median EBITDA: EBITDA is generally defined as annual earnings before interest, taxes, depreciation and amortization (EBITDA) for a portfolio company. The median EBITDA has been based on the EBITDA level across our portfolio companies. First Lien Senior Secured: A senior secured loan is a loan in which the borrower pledges collateral for the loan. First lien indicates the first priority lien on the collateral that secures a borrower's obligations under any outstanding senior debt. Unitranche: Loans that combine both senior secured and mezzanine debt into one loan obligation. 11. Second Lien Senior Secured: A senior secured loan is a loan in which the borrower pledges collateral for the loan. Second lien indicates the second priority lien on the collateral that secures a borrower's obligations to outstanding senior debt to the extent that the value of the assets is sufficient to satisfy the obligations to the first lien secured lenders. 14. Preferred Equity: A type of equity ownership in a portfolio company that has a higher claim to dividends or asset distribution than common equity stockholders. 15. Common Equity: A security that represents ownership in a portfolio company. 23456722 12. Unsecured Debt: A debt obligation that is not protected by a lien on the collateral of the borrower's debt obligations. 13. Mezzanine Debt: Any subordinated debt that represents a claim on a borrower's assets which is senior only to that of the common equity. Covenant-Lite: Covenant-lite indicates that the loan agreement by the borrower does not contain financial covenants. 16. Financial Covenant: A financial covenant refers to certain conditions that a borrower agrees to maintain throughout the loan term agreement. 17. 18. Floor: A floor represents the minimum rate of interest. A "SOFR Floor" indicates the minimum rate of interest on SOFR. 19. 20. Collateralized Loan Obligation (CLO): A CLO is a security consisting of a group of loans organized by maturity and risk profile. The loans are packaged together and sold off to investors through different tranches. Investors receive scheduled debt payments while also assuming default risk. Junior Capital Structure: Junior capital includes second lien, unsecured or mezzanine debt, preferred equity and common equity. 21. Liquid & Multi-Asset Credit: Investment strategy that invests across multiple credit sectors, including bank loans and high yield debt opportunities. 22. Structured Credit: Investment strategy consisting of the pooling together of debt obligations and selling the resulting interest-bearing securities to investors. 23. Private Credit: Investment strategy focused on tailored lending solutions to small and medium sized companies who generally do not have access to public credit markets. 24. Opportunistic: Investment strategy focused on flexible capital that can invest across the capital structure, including junior capital opportunities. 25. Asset Backed Lending: Lending that may be secured by a variety of assets, such as accounts receivable, equipment, inventory, or commercial property. BainCapital CREDIT 29