Bain Capital Specialty Finance, Inc. Announces March 31, 2021 Financial Results and Declares Second Quarter 2021 Dividend of $0.34 per Share
Bain Capital Specialty Finance reported its Q1 2021 results, showing strong earnings driven by higher interest income and improved credit metrics. The net investment income per share remained steady at $0.34, while net income per share decreased to $0.49 from $0.61 in the previous quarter. The net asset value per share increased to $16.69. The company also declared a dividend of $0.34 per share for Q2 2021, while diversifying its liabilities and forming a joint venture in Europe and Australia. Moody's assigned BCSF a Baa3 rating with a stable outlook.
- Net investment income per share held steady at $0.34.
- Net asset value per share increased to $16.69 from $16.54.
- The investment portfolio yield improved to 7.6%.
- The debt-to-equity ratio improved from 1.30x to 1.15x.
- Formation of the International Senior Loan Program to expand investment opportunities.
- Moody's assigned a Baa3 investment grade rating.
- Net income per share decreased to $0.49 from $0.61.
- Net losses in gross investment funding of $165.5 million.
Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the “Company”, “our” or “we”) today announced its financial results for the first quarter ended March 31, 2021, and that its Board of Directors has declared a dividend of
“We delivered strong first quarter earnings results driven by higher interest income, improved credit metrics and net gains across our diversified portfolio,” said Michael Ewald, Chief Executive Officer of BCSF. “We also strengthened the Company’s balance sheet by further diversifying our liability structure and demonstrated meaningful de-leveraging to better position BCSF to capitalize on new investment opportunities in an attractive environment, while remaining disciplined in our credit approach.”
QUARTERLY HIGHLIGHTS
-
Net investment income per share was
$0.34 , as compared to$0.34 for the quarter ended December 31, 2020; -
Net income per share was
$0.49 , as compared to$0.61 for the quarter ended December 31, 2020; -
Net asset value per share as of March 31, 2021 was
$16.69 , as compared to$16.54 as of December 31, 2020; -
Gross and net investment fundings were
$383.9 million and$(165.5) million , respectively. Ending debt-to-equity (net of cash) ratio was 1.15x, as compared to 1.30x as of December 31, 2020; -
The investment portfolio yield at amortized cost was
7.6% , up from7.3% as of December 31, 2020(1); - No investments were on non-accrual status as of March 31, 2021;
-
In February 2021, the Company formed the International Senior Loan Program, LLC (“ISLP”), a joint venture focused on investing in middle market direct lending opportunities across Europe and Australia. The Company contributed senior secured debt investments at fair value of
$317.1 million in exchange for an ownership stake in the joint venture; - Moody’s Investors Service assigned the Company with an investment grade rating of Baa3 and Stable outlook;
-
On March 10, 2021, the Company closed an offering of
$300.0 million aggregate principal amount of2.95% unsecured notes due 2026. The net proceeds of the offering were primarily used to pay down debt under the Company’s revolving credit facilities; and -
Subsequent to quarter-end, the Company’s Board of Directors declared a dividend of
$0.34 per share for the second quarter of 2021 payable to stockholders of record as of June 30, 2021(2).
SELECTED FINANCIAL HIGHLIGHTS
($ in millions, unless otherwise noted) |
Q1 2021 |
Q4 2020 |
|||
Net investment income per share |
$ |
0.34 |
$ |
0.34 |
|
Net investment income |
$ |
22.2 |
$ |
21.9 |
|
Earnings per share |
$ |
0.49 |
$ |
0.61 |
|
Dividends per share declared and payable |
$ |
0.34 |
$ |
0.34 |
|
< | |||||
FAQ
What are the Q1 2021 earnings results for BCSF?
What is the dividend declared by BCSF for Q2 2021?
How did BCSF's net asset value change in Q1 2021?
What rating did Moody's assign to BCSF?
What was BCSF's investment portfolio yield in Q1 2021?
