BOSTON--(BUSINESS WIRE)--November 10, 2025--
Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the "Company", "our" or "we") today announced financial results for the third quarter ended September 30, 2025, and that its Board of Directors (the "Board") has declared a dividend of $0.42 per share for the fourth quarter of 2025 and an additional dividend of $0.03 per share that was previously announced.
"BCSF delivered another strong quarter of earnings driven by high net investment income that exceeded our regular dividend and continued healthy credit performance," said Michael Ewald, Chief Executive Officer of BCSF. "Looking forward, we believe the Company is well-positioned to continue to source high-quality lending opportunities supported by our dedicated Private Credit Group's long heritage of disciplined investing in the core middle market."
QUARTERLY HIGHLIGHTS
-- Net investment income (NII) per share was $0.45, equating to an
annualized NII yield on book value of 10.3%(1);
-- Net income per share was $0.29, equating to an annualized return on
book value of 6.6%(1);
-- Net asset value per share as of September 30, 2025 was $17.40, as
compared to $17.56 as of June 30, 2025;
-- Gross and net investment fundings were $340.1 million and $44.0 million,
respectively; ending net debt-to-equity was 1.23x, as compared to 1.20x
as of June 30, 2025(2);
-- Investments on non-accrual represented 1.5% and 0.7% of the total
investment portfolio at amortized cost and fair value, respectively, as
of September 30, 2025; and
-- Subsequent to quarter-end, the Company's Board of Directors declared a
dividend of $0.42 per share for the fourth quarter of 2025 payable to
stockholders of record as of December 16, 2025. The Board of Directors
previously announced an additional dividend of $0.03 per share payable to
stockholders of record as of December 16, 2025(3).
SELECTED FINANCIAL HIGHLIGHTS
($ in millions, unless otherwise noted) Q3 2025 Q2 2025 ----------------------------------------- --------- --------- Net investment income per share $ 0.45 $ 0.47 Net investment income $ 29.2 $ 30.6 Earnings per share $ 0.29 $ 0.37 Dividends per share declared and payable $ 0.45 $ 0.45 ($ in millions, unless otherwise As of As of noted) September 30, 2025 June 30, 2025 --------------------------------- --------------------- ---------------- Total fair value of investments $ 2,534.1 $ 2,501.8 Total assets $ 2,716.0 $ 2,774.3 Total net assets $ 1,128.5 $ 1,139.0 Net asset value per share $ 17.40 $ 17.56
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended September 30, 2025, the Company invested $340.1 million in 101 portfolio companies, including $123.9 million in 14 new companies, $210.2 million in 86 existing companies and $6.0 million in SLP. The Company had $296.1 million of principal repayments and sales in the quarter, resulting in net investment fundings of $44.0 million.
Investment Activity for the Quarter Ended September 30, 2025:
($ in millions) Q3 2025 Q2 2025 ------------------------ --------- --------- Investment Fundings $ 340.1 $ 529.6 Sales and Repayments $ 296.1 $ 502.3 ------------------------ ----- ----- Net Investment Activity $ 44.0 $ 27.3
As of September 30, 2025, the Company's investment portfolio had a fair value of $2,534.1 million, comprised of investments in 195 portfolio companies operating across 31 different industries.
Investment Portfolio at Fair Value as of September 30, 2025:
Investment Type $ in Millions % of Total
------------------------------------- --------------- --------------
First Lien Senior Secured Loan $ 1,639.4 64.6%
Second Lien Senior Secured Loan 30.0 1.2
Subordinated Debt 93.3 3.7
Preferred Equity 146.5 5.8
Equity Interest 225.9 8.9
Warrants 0.8 0.0
Investment Vehicles 398.2 15.8
Subordinated Note in ISLP 190.7 7.6
Equity Interest in ISLP 41.0 1.9
Subordinated Note in SLP 157.9 6.2
Preferred and Equity Interest
in SLP 8.6 0.1
------------------------------------- ----------- --------------
Total $ 2,534.1 100.0%
As of September 30, 2025, the weighted average yield on the investment portfolio at amortized cost and fair value were 11.1% and 11.2%, respectively, as compared to 11.4% and 11.4%, respectively, as of June 30, 2025(4)(5) . 92.8% of the Company's debt investments at fair value were in floating rate securities.
As of September 30, 2025, six portfolio companies were on non-accrual status, representing 1.5% and 0.7% of the total investment portfolio at amortized cost and fair value, respectively.
As of September 30, 2025, ISLP's investment portfolio had an aggregate fair value of $717.8 million, comprised of investments in 41 portfolio companies operating across 17 different industries. The investment portfolio on a fair value basis was comprised of 96.0% first lien senior secured loans, 1.0% second lien senior secured loans and 3.0% equity interests. 100% of ISLP's debt investments at fair value were in floating rate securities.
As of September 30, 2025, SLP's investment portfolio had an aggregate fair value of $1,548.9 million, comprised of investments in 94 portfolio companies operating across 26 different industries. The investment portfolio on a fair value basis was comprised of 99.7% first lien senior secured loans and 0.3% second lien senior secured loans. 100.0% of SLP's debt investments at fair value were in floating rate securities.
RESULTS OF OPERATIONS
For the three months ended September 30, 2025 and June 30, 2025, total investment income was $67.2 million and $71.0 million, respectively.
Total expenses (before taxes) for the three months ended September 30, 2025 and June 30, 2025 were $37.2 million and $39.3 million, respectively.
Net investment income for the three months ended September 30, 2025 and June 30, 2025 was $29.2 million or $0.45 per share and $30.6 million or $0.47 per share, respectively.
During the three months ended September 30, 2025, the Company had net realized and unrealized losses of $10.5 million.
Net increase in net assets resulting from operations for the three months ended September 30, 2025 was $18.7 million, or $0.29 per share.
CAPITAL AND LIQUIDITY
As of September 30, 2025, the Company had total principal debt outstanding of $1,498.6 million, including $398.0 million outstanding in the Company's Sumitomo Credit Facility, $150.6 million outstanding of the debt issued through BCC Middle Market CLO 2019-1 LLC, $300.0 million outstanding in the Company's senior unsecured notes due March 2026, $300.0 million outstanding in the Company's senior unsecured notes due October 2026, and $350.0 million outstanding in the Company's senior unsecured notes due March 2030.
For the three months ended September 30, 2025, the weighted average interest rate on debt outstanding was 4.8%, as compared to 4.9% for the three months ended June 30, 2025.
As of September 30, 2025, the Company had cash and cash equivalents (including foreign cash) of $60.6 million, restricted cash and cash equivalents of $26.2 million, $26.5 million of unsettled trades, net of receivables and payables of investments, and $457.0 million of capacity under its Sumitomo Credit Facility. As of September 30, 2025, the Company had $493.6 million of undrawn investment commitments.
As of September 30, 2025, the Company's debt-to-equity and net debt-to-equity ratios were 1.33x and 1.23x, respectively, as compared to 1.37x and 1.20x, respectively, as of June 30, 2025(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 fourth quarter dividend is payable on December 30, 2025 to
stockholders of record as of December 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 November 11, 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: 1-800-343-4136 -- International: 1-203-518-9843 -- Conference ID: BAIN
All participants will need to reference "Bain Capital Specialty Finance - Third Quarter Ended September 30, 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 November 18, 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: 11160408
Bain Capital Specialty Finance, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)
As of As of
------------- -------------
September 30, December 31,
2025 2024
------------- -------------
(Unaudited)
Assets
Investments at fair value:
Non-controlled/non-affiliate
investments (amortized cost
of $1,913,737 and $1,784,019,
respectively) $ 1,934,475 $ 1,773,742
Non-controlled/affiliate
investments (amortized cost
of $7,480 and $77,269,
respectively) 15,158 75,733
Controlled affiliate
investments (amortized cost
of $603,520 and $585,702,
respectively) 584,465 581,714
Cash and cash equivalents 40,874 51,562
Foreign cash (cost of $18,858
and $2,640, respectively) 19,730 1,963
Restricted cash and cash
equivalents 26,168 45,541
Collateral on derivatives 11,110 9,755
Deferred financing costs 3,807 4,591
Interest receivable on
investments 37,241 39,164
Interest rate swap 9,062 --
Receivable for sales and
paydowns of investments 29,162 37,760
Prepaid insurance 727 197
Unrealized appreciation on
forward currency exchange
contracts -- 4,690
Dividend receivable 4,057 5,745
--------- ---------
Total Assets $ 2,716,036 $ 2,632,157
========= =========
Liabilities
Debt (net of unamortized debt
issuance costs of $11,205 and
$4,929, respectively) $ 1,496,360 $ 1,390,270
Interest payable 12,945 13,860
Payable for investments
purchased 2,682 29,490
Collateral payable on
derivatives 8,310 --
Unrealized depreciation on
forward currency exchange
contracts 10,619 1,185
Base management fee payable 9,430 9,160
Incentive fee payable 4,599 4,696
Accounts payable and accrued
expenses 42,544 14,771
Distributions payable -- 29,053
--------- ---------
Total Liabilities 1,587,489 1,492,485
--------- ---------
Commitments and Contingencies
(See Note 10)
Net Assets
Common stock, par value $0.001
per share, 100,000,000,000 and
100,000,000,000 shares
authorized, 64,868,507 and
64,562,265 shares issued and
outstanding as of September 30,
2025 and December 31, 2024,
respectively 65 65
Paid in capital in excess of par
value 1,164,045 1,159,493
Total distributable loss (35,563) (19,886)
--------- ---------
Total Net Assets 1,128,547 1,139,672
--------- ---------
Total Liabilities and Total Net
Assets $ 2,716,036 $ 2,632,157
========= =========
Net asset value per share $ 17.40 $ 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 For the Nine Months Ended
Ended September 30, September 30,
------------------------- -------------------------
2025 2024 2025 2024
---------- ---------- ---------- ----------
Income
Investment income from
non-controlled/non-affiliate
investments:
Interest from investments $ 43,677 $ 45,135 $ 129,641 $ 134,193
Dividend income 600 826 5,265 1,261
PIK income 7,462 5,231 21,569 15,941
Other income 1,538 5,704 8,529 14,100
---------- ---------- ---------- ----------
Total investment income from
non-controlled/non-affiliate
investments 53,277 56,896 165,004 165,495
Investment income from
non-controlled/affiliate
investments:
Interest from investments -- 120 135 2,980
Dividend income -- 85 -- 906
PIK income -- -- 30 458
Other income 67 -- 109 --
---------- ---------- ---------- ----------
Total investment income from
non-controlled/affiliate
investments 67 205 274 4,344
Investment income from controlled
affiliate investments:
Interest from investments 10,273 10,165 29,228 28,948
Dividend income 3,581 5,274 10,490 20,523
PIK income 2 -- 8 --
---------- ---------- ---------- ----------
Total investment income from
controlled affiliate
investments 13,856 15,439 39,726 49,471
---------- ---------- ---------- ----------
Total investment income 67,200 72,540 205,004 219,310
---------- ---------- ---------- ----------
Expenses
Interest and debt financing
expenses 20,310 18,117 60,986 53,804
Base management fee 9,430 8,897 27,755 26,484
Incentive fee 4,599 7,020 12,267 24,176
Professional fees 713 870 2,141 2,700
Directors fees 182 173 538 521
Other general and administrative
expenses 1,965 2,454 6,464 7,374
---------- ---------- ---------- ----------
Total expenses, net of fee
waivers 37,199 37,531 110,151 115,059
---------- ---------- ---------- ----------
Net investment income before
taxes 30,001 35,009 94,853 104,251
Income tax expense, including
excise tax 801 1,025 2,953 3,200
---------- ---------- ---------- ----------
Net investment income 29,200 33,984 91,900 101,051
---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)
Net realized gain (loss) on
non-controlled/non-affiliate
investments 1,345 245 (14,780) (7,631)
Net realized gain (loss) on
non-controlled/affiliate
investments (11,081) 3,008 (14,759) 7,727
Net realized gain (loss) on
foreign currency transactions 335 (465) 667 (888)
Net realized gain (loss) on
forward currency exchange
contracts (1,016) 20 (4,830) 1,916
Net change in unrealized
appreciation on foreign currency
translation (183) 998 1,736 967
Net change in unrealized
appreciation on forward currency
exchange contracts 3,023 (5,693) (14,124) (4,289)
Net change in unrealized
appreciation on
non-controlled/non-affiliate
investments (485) (2,135) 31,015 16,925
Net change in unrealized
appreciation on
non-controlled/affiliate
investments 12,459 2,534 9,214 (10,803)
Net change in unrealized
appreciation on controlled
affiliate investments (14,894) 600 (15,067) (7,694)
---------- ---------- ---------- ----------
Total net loss (10,497) (888) (20,928) (3,770)
---------- ---------- ---------- ----------
Net increase in net assets resulting
from operations $ 18,703 $ 33,096 $ 70,972 $ 97,281
========== ========== ========== ==========
Basic and diluted net investment
income per share of common stock $ 0.45 $ 0.53 $ 1.42 $ 1.57
Basic and diluted increase in net
assets resulting from operations per
share of common stock $ 0.29 $ 0.51 $ 1.10 $ 1.51
Basic and diluted weighted average
common stock outstanding 64,868,507 64,562,265 64,805,106 64,562,265
See Notes to Consolidated Financial Statements
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 September 30, 2025, BCSF has invested approximately $9,688.5 million in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. BCSF's investment objective is to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. BCSF has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended.
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 U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this letter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251110353513/en/
CONTACT: Investor Contact:
Katherine Schneider
Tel. (212) 803-9613
investors@baincapitalbdc.com
Media Contact:
Charlyn Lusk
Tel. (646) 502-3549
clusk@stantonprm.com
(END) Dow Jones Newswires
November 10, 2025 17:26 ET (22:26 GMT)
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