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• Q4 Net Investment Income Per Share: $0.52, annualized yield on book value of 11.8%.

• Q4 Earnings Per Share: $0.34, annualized return on book value of 7.8%.

• Full Year 2024 Net Investment Income Per Share: $2.09, 11.8% return on equity.

• Full Year 2024 Earnings Per Share: $1.85, total return on equity of 10.9%.

• Net Asset Value Per Share: $17.65 at year-end, down from $17.76 in the previous quarter.

• Total Dividends Paid in 2024: $1.80 per share, a 13% increase from 2023.

• Q4 Total Investment Income: $73.3 million, up from $72.5 million in Q3.

• Q4 Total Expenses: $38.4 million, up from $37.5 million in Q3.

• Q4 Net and Unrealized Losses: $11.5 million.

• Investment Portfolio at Fair Value: $2.4 billion at year-end.

• Debt to Equity Ratio: 1.22 times at year-end.

• Net Leverage Ratio: 1.13 times at year-end.

• Liquidity at Year-End: $520 million, pro forma liquidity of $870 million.

• Weighted Average Yield on Investment Portfolio: 11.7% at amortized cost, 11.8% at fair value.

• Non-Accrual Investments: 1.3% at amortized cost, 0.2% at fair value.

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Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bain Capital Specialty Finance Inc (NYSE:BCSF) reported strong Q4 and full-year 2024 results, with net investment income per share of $0.52 for Q4 and $2.09 for the full year, representing an 11.8% return on equity.

• The company achieved a 124% dividend coverage for both Q4 and the full year, indicating robust financial health and the ability to sustain dividend payouts.

• BCSF's net asset value per share increased from $17.60 in Q4 2023 to $17.65 in Q4 2024, reflecting the strength of its underlying portfolio.

• The company paid out record dividends totaling $1.80 per share for 2024, a 13% increase from 2023, demonstrating a commitment to returning value to shareholders.

• BCSF's investment portfolio is highly diversified, with a focus on first lien senior secured loans, which accounted for 64% of the portfolio at fair value, emphasizing a conservative investment strategy.

Negative Points

• The net asset value per share slightly decreased from $17.76 in the previous quarter to $17.65, indicating a minor decline in portfolio value.

• The company experienced a markdown in its hospitality sector investment, specifically the Ambridge Hospitality second lien loan, which impacted its net asset value.

• There was a decrease in portfolio yield due to lower base rates and spread compression from new investments, which could affect future income generation.

• Investments on non-accrual represented 1.3% of the total investment portfolio at amortized cost, indicating some level of credit risk within the portfolio.

• The weighted average yield on the investment portfolio declined from 12.1% in Q3 2024 to 11.8% in Q4 2024, reflecting a decrease in income potential from the portfolio.