Yahoo Finance

• Net Investment Income Per Share: $0.50, representing an 8% return on book value.

• Net Investment Income: 119% dividend coverage.

• Earnings Per Share: $0.44, reflecting a 10.0% annualized return on book value.

• Net Asset Value Per Share: $17.64, down 1 penny from the prior quarter.

• Q1 Gross Originations: $277 million, down 31% year over year.

• Investment Portfolio at Fair Value: $2.5 billion across 175 companies.

• Total Investment Income: $66.8 million for the three months ended March 31, 2025.

• Total Expenses: $33.7 million for the first quarter.

• Net Income: $28.5 million or $0.44 per share.

• Liquidity: $823 million, including $699 million of undrawn capacity on a revolver facility.

• Debt-to-Equity Ratio: 1.27 times at the end of Q1.

• Net Leverage Ratio: 1.17 times at the end of Q1.

• Weighted Average Yield: 11.5% at amortized cost and fair value.

• Spillover Income: Estimated at $1.41 per share.

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Release Date: May 06, 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 a Q1 net investment income per share of $0.50, exceeding the regular dividend with 119% dividend coverage.

• The company declared a second quarter dividend of $0.42 per share, with an additional $0.03 per share, totaling $0.45 per share, representing a 10.2% annualized return on ending value.

• BCSF maintained a strong liquidity position with $823 million in total available liquidity, including undrawn capacity on revolving credit and cash.

• The investment portfolio is diversified across 175 companies in 29 industries, with a focus on first lien senior secured loans, which comprise 64% of the portfolio.

• The company has a low exposure to non-accrual investments, representing only 1.4% at amortized cost and 0.7% at fair value, indicating strong credit quality.

Negative Points

• Q1 gross originations were $277 million, down 31% year over year, indicating a decrease in new investment opportunities.

• Total investment income decreased to $66.8 million from $73.3 million in the previous quarter, driven by a decrease in average investment balance and lower portfolio yield.

• The weighted average yield of the investment portfolio decreased slightly due to a decrease in reference rates and spreads.

• The company faced increased competition in the middle market direct lending space, impacting pricing and origination volumes.

• Realized and unrealized losses amounted to $3.6 million for the quarter, reflecting challenges in certain investments.