Bain Capital Specialty Finance, Inc. Announces March 31, 2025 Financial Results and Declares Second Quarter 2025 Dividend of $0.42 per Share
“BCSF’s first quarter results represent a strong start to the year driven by high net investment income, stable net asset value and continued solid credit performance,” said Michael Ewald, Chief Executive Officer of BCSF. “We believe the Company is well-positioned to navigate potential market volatility given our diversified portfolio of predominantly first lien senior secured loans, balance sheet strength, and our global team’s deep experience and disciplined investment approach.”
QUARTERLY HIGHLIGHTS
-
Net investment income (NII) per share was
$0.50 11.3% (1); -
Net income per share was
$0.44 10.0% (1); -
Net asset value per share as of March 31, 2025 was
$17.64 $17.65 -
Gross and net investment fundings were
$277.2 million $30.8 million -
Investments on non-accrual represented
1.4% and0.7% of the total investment portfolio at amortized cost and fair value, respectively, as of March 31, 2025; -
During the quarter, the Company closed an offering of
$350.0 million 5.950% unsecured notes due 2030 (the “March 2030 Notes”). In connection with the March 2030 Notes, the Company entered into an interest rate swap agreement to receive a fixed interest rate of5.950% per annum and pay a floating interest rate of SOFR plus1.90% per annum; and -
Subsequent to quarter-end, the Company’s Board of Directors declared a dividend of
$0.42 $0.03
SELECTED FINANCIAL HIGHLIGHTS
($ in millions, unless otherwise noted) |
Q1 2025 |
|
Q4 2024 |
|
||
Net investment income per share |
$ |
0.50 |
|
$ |
0.52 |
|
Net investment income |
$ |
32.1 |
|
$ |
33.6 |
|
Earnings per share |
$ |
0.44 |
|
$ |
0.34 |
|
Dividends per share declared and payable |
$ |
0.45 |
|
$ |
0.45 |
|
($ in millions, unless otherwise noted) |
As of
|
|
As of
|
|
||
Total fair value of investments |
$ |
2,464.9 |
|
$ |
2,431.2 |
|
Total assets |
$ |
2,642.3 |
|
$ |
2,632.2 |
|
Total net assets |
$ |
1,144.5 |
|
$ |
1,139.7 |
|
Net asset value per share |
$ |
17.64 |
|
$ |
17.65 |
|
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended March 31, 2025, the Company invested
Investment Activity for the Quarter Ended March 31, 2025:
($ in millions) |
Q1 2025 |
|
Q4 2024 |
|
||
Investment Fundings |
$ |
277.2 |
|
$ |
547.8 |
|
Sales and Repayments |
$ |
246.4 |
|
$ |
505.1 |
|
Net Investment Activity |
$ |
30.8 |
|
$ |
42.7 |
|
As of March 31, 2025, the Company’s investment portfolio had a fair value of
Investment Portfolio at Fair Value as of March 31, 2025:
Investment Type |
$ in Millions |
|
% of Total |
|
||
First Lien Senior Secured Loan |
$ |
1,579.5 |
|
|
64.2 |
% |
Second Lien Senior Secured Loan |
|
20.4 |
|
|
0.8 |
|
Subordinated Debt |
|
82.8 |
|
|
3.4 |
|
Preferred Equity |
|
166.1 |
|
|
6.7 |
|
Equity Interest |
|
226.9 |
|
|
9.2 |
|
Warrants |
|
0.6 |
|
|
0.0 |
|
Investment Vehicles |
|
388.6 |
|
|
15.7 |
|
Subordinated Note in ISLP |
|
190.7 |
|
|
7.7 |
|
Equity Interest in ISLP |
|
54.2 |
|
|
2.2 |
|
Subordinated Note in SLP |
|
136.9 |
|
|
5.6 |
|
Preferred and Equity Interest in SLP |
|
6.8 |
|
|
0.2 |
|
Total |
$ |
2,464.9 |
|
|
100.0 |
% |
As of March 31, 2025, the weighted average yield on the investment portfolio at amortized cost and fair value were
As of March 31, 2025, four portfolio companies were on non-accrual status, representing
As of March 31, 2025, ISLP’s investment portfolio had an aggregate fair value of
As of March 31, 2025, SLP’s investment portfolio had an aggregate fair value of
RESULTS OF OPERATIONS
For the three months ended March 31, 2025 and December 31, 2024, total investment income was
Total expenses (before taxes) for the three months ended March 31, 2025 and December 31, 2024 were
Net investment income for the three months ended March 31, 2025 and December 31, 2024 was
During the three months ended March 31, 2025, the Company had net realized and unrealized losses of
Net increase in net assets resulting from operations for the three months ended March 31, 2025 was
CAPITAL AND LIQUIDITY
As of March 31, 2025, the Company had total principal debt outstanding of
For the three months ended March 31, 2025, the weighted average interest rate on debt outstanding was
As of March 31, 2025, the Company had cash and cash equivalents (including foreign cash) of
As of March 31, 2025, the Company’s debt-to-equity and net debt-to-equity ratios were 1.27x and 1.17x, respectively, as compared to 1.22x and 1.13x, respectively, as of December 31, 2024(2).
Endnotes
(1) |
|
Net investment income yields and net income returns are calculated on average net assets, or book value, for the respective periods shown. |
|
|
|
(2) |
|
Net debt-to-equity represents principal debt outstanding less cash and cash equivalents and unsettled trades, net of receivables and payables of investments. |
|
|
|
(3) |
|
The second quarter dividend is payable on June 30, 2025 to stockholders of record as of June 16, 2025. |
|
|
|
(4) |
|
The weighted average yield is computed as (a) the annual stated interest rate or yield earned on the relevant accruing debt and other income producing securities plus amortization of fees and discounts on the performing debt and other income producing investments, divided by (b) the total relevant investments at amortized cost or fair value. The weighted average yield does not represent the total return to our stockholders. |
|
||
(5) |
For non-stated rate income producing investments, computed based on (a) the dividend or interest income earned for the respective trailing twelve months ended on the measurement date, divided by (b) the ending amortized cost or fair value, as applicable. In instances where historical dividend or interest income data is not available or not representative for the trailing twelve months ended, the dividend or interest income is annualized. |
CONFERENCE CALL INFORMATION
A conference call to discuss the Company’s financial results will be held live at 8:30 a.m. Eastern Time on May 6, 2025. Please visit BCSF’s webcast link located on the Events & Presentations page of the Investor Resources section of BCSF’s website at http://www.baincapitalspecialtyfinance.com for a slide presentation that complements the Earnings Conference Call.
Participants are also invited to access the conference call by dialing one of the following numbers:
- Domestic: 1-833-316-1983
- International: 1-785-838-9310
- Conference ID: BAIN
All participants will need to reference “Bain Capital Specialty Finance - First Quarter Ended March 31, 2025 Earnings Conference Call” once connected with the operator. All participants are asked to dial in 10-15 minutes prior to the call.
Replay Information:
An archived replay will be available approximately three hours after the conference call concludes through May 13, 2025 via a webcast link located on the Investor Resources section of BCSF’s website, and via the dial-in numbers listed below:
- Domestic: 1-844-512-2921
- International: 1-412-317-6671
- Conference ID: 11158986
Bain Capital Specialty Finance, Inc.
Consolidated Statements of Assets and Liabilities (in thousands, except share and per share data) |
||||||||||
|
|
As of |
|
|
As of |
|
||||
|
|
March 31, 2025 |
|
|
December 31, 2024 |
|
||||
|
|
(Unaudited) |
|
|
|
|
|
|||
Assets |
|
|
|
|
|
|
|
|
||
Investments at fair value: |
|
|
|
|
|
|
|
|
||
Non-controlled/non-affiliate investments (amortized cost of |
|
$ |
|
1,813,479 |
|
|
$ |
|
1,773,742 |
|
Non-controlled/affiliate investments (amortized cost of |
|
|
|
71,524 |
|
|
|
|
75,733 |
|
Controlled affiliate investments (amortized cost of |
|
|
|
579,942 |
|
|
|
|
581,714 |
|
Cash and cash equivalents |
|
|
|
10,168 |
|
|
|
|
51,562 |
|
Foreign cash (cost of |
|
|
|
28,188 |
|
|
|
|
1,963 |
|
Restricted cash and cash equivalents |
|
|
|
55,609 |
|
|
|
|
45,541 |
|
Collateral on derivatives |
|
|
|
2,900 |
|
|
|
|
9,755 |
|
Deferred financing costs |
|
|
|
4,333 |
|
|
|
|
4,591 |
|
Interest receivable on investments |
|
|
|
31,061 |
|
|
|
|
39,164 |
|
Interest rate swap |
|
|
|
5,371 |
|
|
|
|
— |
|
Receivable for sales and paydowns of investments |
|
|
|
32,186 |
|
|
|
|
37,760 |
|
Prepaid insurance |
|
|
|
— |
|
|
|
|
197 |
|
Unrealized appreciation on forward currency exchange contracts |
|
|
|
1,471 |
|
|
|
|
4,690 |
|
Dividend receivable |
|
|
|
6,083 |
|
|
|
|
5,745 |
|
Total Assets |
|
$ |
|
2,642,315 |
|
|
$ |
|
2,632,157 |
|
|
|
|
|
|
|
|
|
|
||
Liabilities |
|
|
|
|
|
|
|
|
||
Debt (net of unamortized debt issuance costs of |
|
$ |
|
1,451,204 |
|
|
$ |
|
1,390,270 |
|
Interest payable |
|
|
|
11,610 |
|
|
|
|
13,860 |
|
Payable for investments purchased |
|
|
|
1,917 |
|
|
|
|
29,490 |
|
Collateral payable on derivatives |
|
|
|
6,000 |
|
|
|
|
— |
|
Unrealized depreciation on forward currency exchange contracts |
|
|
|
39 |
|
|
|
|
1,185 |
|
Base management fee payable |
|
|
|
9,068 |
|
|
|
|
9,160 |
|
Incentive fee payable |
|
|
|
2,222 |
|
|
|
|
4,696 |
|
Accounts payable and accrued expenses |
|
|
|
15,751 |
|
|
|
|
14,771 |
|
Distributions payable |
|
|
|
— |
|
|
|
|
29,053 |
|
Total Liabilities |
|
|
|
1,497,811 |
|
|
|
|
1,492,485 |
|
|
|
|
|
|
|
|
|
|
||
Commitments and Contingencies (See Note 10) |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Net Assets |
|
|
|
|
|
|
|
|
||
Common stock, par value |
|
|
|
65 |
|
|
|
|
65 |
|
Paid in capital in excess of par value |
|
|
|
1,164,045 |
|
|
|
|
1,159,493 |
|
Total distributable loss |
|
|
|
(19,606 |
) |
|
|
|
(19,886 |
) |
Total Net Assets |
|
|
|
1,144,504 |
|
|
|
|
1,139,672 |
|
Total Liabilities and Total Net Assets |
|
$ |
|
2,642,315 |
|
|
$ |
|
2,632,157 |
|
|
|
|
|
|
|
|
|
|
||
Net asset value per share |
|
$ |
|
17.64 |
|
|
$ |
|
17.65 |
|
See Notes to Consolidated Financial Statements |
||||||||||
Bain Capital Specialty Finance, Inc.
Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) |
|||||||||
|
For the Three Months Ended March 31, |
|
|||||||
|
2025 |
|
|
2024 |
|
||||
Income |
|
|
|
|
|
|
|
||
Investment income from non-controlled/non-affiliate investments: |
|
|
|
|
|
|
|
||
Interest from investments |
$ |
|
41,672 |
|
|
$ |
|
43,849 |
|
Dividend income |
|
|
1,725 |
|
|
|
|
— |
|
PIK income |
|
|
6,606 |
|
|
|
|
5,067 |
|
Other income |
|
|
2,833 |
|
|
|
|
5,255 |
|
Total investment income from non-controlled/non-affiliate investments |
|
|
52,836 |
|
|
|
|
54,171 |
|
|
|
|
|
|
|
|
|
||
Investment income from non-controlled/affiliate investments: |
|
|
|
|
|
|
|
||
Interest from investments |
|
|
8 |
|
|
|
|
2,581 |
|
Dividend income |
|
|
— |
|
|
|
|
821 |
|
PIK income |
|
|
17 |
|
|
|
|
315 |
|
Other income |
|
|
42 |
|
|
|
|
— |
|
Total investment income from non-controlled/affiliate investments |
|
|
67 |
|
|
|
|
3,717 |
|
|
|
|
|
|
|
|
|
||
Investment income from controlled affiliate investments: |
|
|
|
|
|
|
|
||
Interest from investments |
|
|
9,148 |
|
|
|
|
9,165 |
|
Dividend income |
|
|
4,786 |
|
|
|
|
7,446 |
|
PIK income |
|
|
2 |
|
|
|
|
— |
|
Total investment income from controlled affiliate investments |
|
|
13,936 |
|
|
|
|
16,611 |
|
Total investment income |
|
|
66,839 |
|
|
|
|
74,499 |
|
|
|
|
|
|
|
|
|
||
Expenses |
|
|
|
|
|
|
|
||
Interest and debt financing expenses |
|
|
18,904 |
|
|
|
|
18,056 |
|
Base management fee |
|
|
9,068 |
|
|
|
|
8,818 |
|
Incentive fee |
|
|
2,222 |
|
|
|
|
9,232 |
|
Professional fees |
|
|
714 |
|
|
|
|
801 |
|
Directors fees |
|
|
174 |
|
|
|
|
174 |
|
Other general and administrative expenses |
|
|
2,571 |
|
|
|
|
2,443 |
|
Total expenses, net of fee waivers |
|
|
33,653 |
|
|
|
|
39,524 |
|
Net investment income before taxes |
|
|
33,186 |
|
|
|
|
34,975 |
|
Income tax expense, including excise tax |
|
|
1,076 |
|
|
|
|
1,025 |
|
Net investment income |
|
|
32,110 |
|
|
|
|
33,950 |
|
|
|
|
|
|
|
|
|
||
Net realized and unrealized gains (losses) |
|
|
|
|
|
|
|
||
Net realized loss on non-controlled/non-affiliate investments |
|
|
(20,986 |
) |
|
|
|
(2,536 |
) |
Net realized gain (loss) on non-controlled/affiliate investments |
|
|
(2,967 |
) |
|
|
|
4,719 |
|
Net realized gain (loss) on foreign currency transactions |
|
|
(249 |
) |
|
|
|
23 |
|
Net realized gain (loss) on forward currency exchange contracts |
|
|
(2,405 |
) |
|
|
|
1,727 |
|
Net change in unrealized appreciation on foreign currency translation |
|
|
435 |
|
|
|
|
(208 |
) |
Net change in unrealized appreciation on forward currency exchange contracts |
|
|
(2,073 |
) |
|
|
|
1,241 |
|
Net change in unrealized appreciation on non-controlled/non-affiliate investments |
|
|
23,993 |
|
|
|
|
10,558 |
|
Net change in unrealized appreciation on non-controlled/affiliate investments |
|
|
(1,866 |
) |
|
|
|
(13,358 |
) |
Net change in unrealized appreciation on controlled affiliate investments |
|
|
2,555 |
|
|
|
|
(1,021 |
) |
Total net gain (loss) |
|
|
(3,563 |
) |
|
|
|
1,145 |
|
Net increase in net assets resulting from operations |
$ |
|
28,547 |
|
|
$ |
|
35,095 |
|
|
|
|
|
|
|
|
|
||
Basic and diluted net investment income per share of common stock |
$ |
|
0.50 |
|
|
$ |
|
0.53 |
|
Basic and diluted increase in net assets resulting from operations per share of common stock |
$ |
|
0.44 |
|
|
$ |
|
0.55 |
|
Basic and diluted weighted average common stock outstanding |
|
|
64,676,192 |
|
|
|
|
64,562,265 |
|
See Notes to Consolidated Financial Statements |
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About Bain Capital Specialty Finance, Inc.
Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. BCSF is managed by BCSF Advisors, LP, an SEC-registered investment adviser and a subsidiary of Bain Capital Credit, LP. Since commencing investment operations on October 13, 2016, and through March 31, 2025, BCSF has invested approximately
Forward-Looking Statements
This letter may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this letter may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20250505380931/en/
Investor Contact:
Katherine Schneider
Tel. (212) 803-9613
investors@baincapitalbdc.com
Media Contact:
Charlyn Lusk
Tel. (646) 502-3549
clusk@stantonprm.com
Source: Bain Capital Specialty Finance, Inc.
