Bain Capital Specialty Finance, Inc. Announces September 30, 2024 Financial Results and Declares Fourth Quarter 2024 Dividend of $0.42 per Share
Bain Capital Specialty Finance (BCSF) reported strong Q3 2024 financial results with net investment income (NII) of $0.53 per share, representing an 11.9% annualized NII yield. The company's net asset value increased to $17.76 per share from $17.70 in the previous quarter. Total investment portfolio reached $2.4 billion across 159 portfolio companies. The Board declared a Q4 2024 dividend of $0.42 per share plus an additional $0.03 per share. Gross and net investment fundings were $413.1 million and $165.1 million respectively, with a net debt-to-equity ratio of 1.09x.
Bain Capital Specialty Finance (BCSF) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un reddito da investimenti netto (NII) di $0.53 per azione, corrispondente a un rendimento annualizzato del NII dell'11.9%. Il valore netto degli attivi dell'azienda è aumentato a $17.76 per azione, rispetto ai $17.70 del trimestre precedente. Il portafoglio totale degli investimenti ha raggiunto $2.4 miliardi tra 159 aziende del portafoglio. Il Consiglio di Amministrazione ha dichiarato un dividendo per il quarto trimestre del 2024 di $0.42 per azione più un ulteriore $0.03 per azione. I finanziamenti lordi e netti per investimenti sono stati rispettivamente di $413.1 milioni e $165.1 milioni, con un rapporto debito totale su capitale netto di 1.09x.
Bain Capital Specialty Finance (BCSF) reportó resultados financieros sólidos para el tercer trimestre de 2024, con un ingreso neto de inversiones (NII) de $0.53 por acción, lo que representa un rendimiento anualizado del NII del 11.9%. El valor neto de los activos de la compañía aumentó a $17.76 por acción desde $17.70 en el trimestre anterior. El portafolio total de inversiones alcanzó $2.4 mil millones en 159 empresas portafolio. La Junta declaró un dividendo para el cuarto trimestre de 2024 de $0.42 por acción más un adicional de $0.03 por acción. Los financiamientos brutos y netos de inversiones fueron de $413.1 millones y $165.1 millones respectivamente, con una relación deuda neta sobre patrimonio de 1.09x.
베인 캐피털 스페셜티 파이낸스 (BCSF)는 2024년 3분기 실적을 발표하며 주당 $0.53의 순투자 소득(NII)을 기록하여 연 환산 NII 수익률이 11.9%에 달했다고 보고했습니다. 회사의 순자산 가치는 이전 분기 $17.70에서 $17.76으로 증가했습니다. 총 투자 포트폴리오는 159개 포트폴리오 회사에서 총 $24억에 달했습니다. 이사회는 2024년 4분기 배당금으로 주당 $0.42와 추가로 $0.03을 선언했습니다. 총 및 순 투자 자금 조달은 각각 $413.1 백만과 $165.1 백만으로, 순 부채 대비 자본 비율은 1.09배입니다.
Bain Capital Specialty Finance (BCSF) a annoncé des résultats financiers solides pour le troisième trimestre 2024, avec un revenu net d'investissement (NII) de 0,53 $ par action, représentant un rendement NII annualisé de 11,9 %. La valeur nette d'actif de l'entreprise a augmenté à 17,76 $ par action, contre 17,70 $ au trimestre précédent. Le portefeuille total d'investissement a atteint 2,4 milliards de dollars à travers 159 sociétés de portefeuille. Le Conseil d'administration a déclaré un dividende pour le quatrième trimestre 2024 de 0,42 $ par action, plus un montant supplémentaire de 0,03 $ par action. Les financements bruts et nets des investissements étaient respectivement de 413,1 millions de dollars et de 165,1 millions de dollars, avec un ratio de dette nette par rapport aux capitaux propres de 1,09x.
Bain Capital Specialty Finance (BCSF) berichtete über starke finanzielle Ergebnisse im dritten Quartal 2024 mit einem Nettoinvestitionsertrag (NII) von $0.53 pro Aktie, was einer annualisierten NII-Rendite von 11.9% entspricht. Der Nettovermögenswert des Unternehmens stieg von $17.70 im vorherigen Quartal auf $17.76 pro Aktie. Das gesamte Investitionsportfolio erreichte $2.4 Milliarden über 159 Portfoliounternehmen. Der Vorstand erklärte eine Dividende für das vierte Quartal 2024 von $0.42 pro Aktie zuzüglich eines zusätzlichen Betrags von $0.03 pro Aktie. Die Brutto- und Nettokapitalanlagen betrugen jeweils $413.1 Millionen und $165.1 Millionen, mit einem Verhältnis von Nettoverschuldung zu Eigenkapital von 1.09x.
- Net investment income increased to $0.53 per share from $0.51 in previous quarter
- Net asset value per share grew to $17.76 from $17.70
- Strong investment activity with $413.1 million in gross fundings
- Portfolio yield remained healthy at 12.1%
- Non-accrual investments increased to 1.9% of portfolio at amortized cost
- Net debt-to-equity ratio increased to 1.09x from 0.95x
- Weighted average yield decreased from 13.1% to 12.1% quarter-over-quarter
Insights
Strong Q3 performance with
Key strengths include robust origination activity with
The leverage profile is well-managed at 1.09x net debt-to-equity, providing adequate dry powder with
“BCSF delivered another strong quarter of earnings driven by high net investment income, net asset value growth, and continued healthy credit performance,” said Michael Ewald, Chief Executive Officer of BCSF. “We also had an active quarter of new origination activity supported by our dedicated Private Credit Group’s global and longstanding presence in the core middle market. Looking forward, we believe the Company remains well-positioned to capitalize on attractive investment opportunities.”
QUARTERLY HIGHLIGHTS
-
Net investment income (NII) per share was
$0.53 11.9% (1); -
Net income per share was
$0.51 11.5% (1); -
Net asset value per share as of September 30, 2024 was
$17.76 $17.70 -
Gross and net investment fundings were
$413.1 million $165.1 million -
Investments on non-accrual represented
1.9% and1.1% of the total investment portfolio at amortized cost and fair value, respectively, as of September 30, 2024; 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) |
Q3 2024 |
|
Q2 2024 |
|
||
Net investment income per share |
$ |
0.53 |
|
$ |
0.51 |
|
Net investment income |
$ |
34.0 |
|
$ |
33.1 |
|
Earnings per share |
$ |
0.51 |
|
$ |
0.45 |
|
Dividends per share declared and payable |
$ |
0.45 |
|
$ |
0.45 |
|
($ in millions, unless otherwise noted) |
As of
|
|
As of
|
|
||
Total fair value of investments |
$ |
2,408.0 |
|
$ |
2,237.5 |
|
Total assets |
$ |
2,543.7 |
|
$ |
2,414.8 |
|
Total net assets |
$ |
1,146.6 |
|
$ |
1,142.5 |
|
Net asset value per share |
$ |
17.76 |
|
$ |
17.70 |
|
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended September 30, 2024, the Company invested
Investment Activity for the Quarter Ended September 30, 2024:
($ in millions) |
Q3 2024 |
|
Q2 2024 |
|
||
Investment Fundings |
$ |
413.1 |
|
$ |
306.7 |
|
Sales and Repayments |
$ |
248.0 |
|
$ |
473.7 |
|
Net Investment Activity |
$ |
165.1 |
|
$ |
(167.0 |
) |
As of September 30, 2024, the Company’s investment portfolio had a fair value of
Investment Portfolio at Fair Value as of September 30, 2024:
Investment Type |
$ in Millions |
|
% of Total |
|
||
First Lien Senior Secured Loan |
$ |
1,521.5 |
|
|
63.2 |
% |
Second Lien Senior Secured Loan |
|
55.3 |
|
|
2.3 |
|
Subordinated Debt |
|
47.0 |
|
|
2.0 |
|
Preferred Equity |
|
171.3 |
|
|
7.1 |
|
Equity Interest |
|
220.2 |
|
|
9.1 |
|
Warrants |
|
0.8 |
|
|
0.0 |
|
Investment Vehicles |
|
391.9 |
|
|
16.3 |
|
Subordinated Note in ISLP |
|
190.7 |
|
|
7.9 |
|
Equity Interest in ISLP |
|
56.5 |
|
|
2.3 |
|
Subordinated Note in SLP |
|
146.5 |
|
|
6.2 |
|
Preferred and Equity Interest in SLP |
|
(1.8 |
) |
|
(0.1 |
) |
Total |
$ |
2,408.0 |
|
|
100.0 |
% |
As of September 30, 2024, the weighted average yield on the investment portfolio at amortized cost and fair value were
As of September 30, 2024, five portfolio companies were on non-accrual status, representing
As of September 30, 2024, ISLP’s investment portfolio had an aggregate fair value of
As of September 30, 2024, SLP’s investment portfolio had an aggregate fair value of
RESULTS OF OPERATIONS
For the three months ended September 30, 2024 and June 30, 2024, total investment income was
Total expenses (before taxes) for the three months ended September 30, 2024 and June 30, 2024 were
Net investment income for the three months ended September 30, 2024 and June 30, 2024 was
During the three months ended September 30, 2024, the Company had net realized and unrealized losses of
Net increase in net assets resulting from operations for the three months ended September 30, 2024 was
CAPITAL AND LIQUIDITY
As of September 30, 2024, the Company had total principal debt outstanding of
For the three months ended September 30, 2024, the weighted average interest rate on debt outstanding was
As of September 30, 2024, the Company had cash and cash equivalents (including foreign cash) of
As of September 30, 2024, the Company’s debt-to-equity and net debt-to-equity ratios were 1.14x and 1.09x, respectively, as compared to 1.03x and 0.95x, respectively, as of June 30, 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 fourth quarter dividend is payable on January 31, 2025 to stockholders of record as of December 31, 2024. |
|
|
|
(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. |
CONFERENCE CALL INFORMATION
A conference call to discuss the Company’s financial results will be held live at 9:30 a.m. Eastern Time on November 6, 2024. 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: 1-800-343-4849
- International: 1-203-518-9848
- Conference ID: BAIN
All participants will need to reference “Bain Capital Specialty Finance - Third Quarter Ended September 30, 2024 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 13, 2024 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: 11157443
Bain Capital Specialty Finance, Inc.
|
||||||||||
|
|
As of |
|
|
As of |
|
||||
|
|
September 30,
|
|
|
December 31,
|
|
||||
|
|
(Unaudited) |
|
|
|
|
|
|||
Assets |
|
|
|
|
|
|
|
|
||
Investments at fair value: |
|
|
|
|
|
|
|
|
||
Non-controlled/non-affiliate investments (amortized cost of |
|
$ |
|
1,754,245 |
|
|
$ |
|
1,593,360 |
|
Non-controlled/affiliate investment (amortized cost of |
|
|
|
80,035 |
|
|
|
|
147,971 |
|
Controlled affiliate investment (amortized cost of |
|
|
|
573,670 |
|
|
|
|
557,012 |
|
Cash and cash equivalents |
|
|
|
25,336 |
|
|
|
|
42,995 |
|
Foreign cash (cost of |
|
|
|
5,125 |
|
|
|
|
6,405 |
|
Restricted cash and cash equivalents |
|
|
|
29,292 |
|
|
|
|
63,084 |
|
Collateral on forward currency exchange contracts |
|
|
|
9,675 |
|
|
|
|
7,613 |
|
Deferred financing costs |
|
|
|
4,855 |
|
|
|
|
2,802 |
|
Interest receivable on investments |
|
|
|
34,520 |
|
|
|
|
37,169 |
|
Receivable for sales and paydowns of investments |
|
|
|
17,873 |
|
|
|
|
4,310 |
|
Prepaid insurance |
|
|
|
383 |
|
|
|
|
210 |
|
Dividend receivable |
|
|
|
8,673 |
|
|
|
|
9,417 |
|
Total Assets |
|
$ |
|
2,543,682 |
|
|
$ |
|
2,472,348 |
|
|
|
|
|
|
|
|
|
|
||
Liabilities |
|
|
|
|
|
|
|
|
||
Debt (net of unamortized debt issuance costs of |
|
$ |
|
1,300,607 |
|
|
$ |
|
1,255,933 |
|
Interest payable |
|
|
|
13,170 |
|
|
|
|
13,283 |
|
Payable for investments purchased |
|
|
|
17,280 |
|
|
|
|
11,453 |
|
Unrealized depreciation on forward currency exchange contracts |
|
|
|
6,549 |
|
|
|
|
2,260 |
|
Base management fee payable |
|
|
|
8,897 |
|
|
|
|
8,929 |
|
Incentive fee payable |
|
|
|
7,020 |
|
|
|
|
7,327 |
|
Accounts payable and accrued expenses |
|
|
|
14,518 |
|
|
|
|
9,581 |
|
Distributions payable |
|
|
|
29,053 |
|
|
|
|
27,116 |
|
Total Liabilities |
|
|
|
1,397,094 |
|
|
|
|
1,335,882 |
|
|
|
|
|
|
|
|
|
|
||
Commitments and Contingencies (See Note 10) |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Net Assets |
|
|
|
|
|
|
|
|
||
Common stock, par value |
|
|
|
65 |
|
|
|
|
65 |
|
Paid in capital in excess of par value |
|
|
|
1,165,191 |
|
|
|
|
1,168,384 |
|
Total distributable loss |
|
|
|
(18,668 |
) |
|
|
|
(31,983 |
) |
Total Net Assets |
|
|
|
1,146,588 |
|
|
|
|
1,136,466 |
|
Total Liabilities and Total Net Assets |
|
$ |
|
2,543,682 |
|
|
$ |
|
2,472,348 |
|
|
|
|
|
|
|
|
|
|
||
Net asset value per share |
|
$ |
|
17.76 |
|
|
$ |
|
17.60 |
|
See Notes to Consolidated Financial Statements |
||||||||||
Bain Capital Specialty Finance, Inc.
|
||||||||||||||||||||
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||||
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment income from non-controlled/non-affiliate investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest from investments |
|
$ |
|
45,135 |
|
|
$ |
|
45,418 |
|
|
$ |
|
134,193 |
|
|
$ |
|
140,588 |
|
Dividend income |
|
|
|
826 |
|
|
|
|
— |
|
|
|
|
1,261 |
|
|
|
|
62 |
|
PIK income |
|
|
|
5,231 |
|
|
|
|
4,926 |
|
|
|
|
15,941 |
|
|
|
|
15,015 |
|
Other income |
|
|
|
5,704 |
|
|
|
|
1,008 |
|
|
|
|
14,100 |
|
|
|
|
8,178 |
|
Total investment income from non-controlled/non-affiliate investments |
|
|
|
56,896 |
|
|
|
|
51,352 |
|
|
|
|
165,495 |
|
|
|
|
163,843 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment income from non-controlled/affiliate investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest from investments |
|
|
|
120 |
|
|
|
|
2,412 |
|
|
|
|
2,980 |
|
|
|
|
7,375 |
|
Dividend income |
|
|
|
85 |
|
|
|
|
950 |
|
|
|
|
906 |
|
|
|
|
3,955 |
|
PIK income |
|
|
|
— |
|
|
|
|
655 |
|
|
|
|
458 |
|
|
|
|
1,677 |
|
Total investment income from non-controlled/affiliate investments |
|
|
|
205 |
|
|
|
|
4,017 |
|
|
|
|
4,344 |
|
|
|
|
13,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment income from controlled affiliate investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest from investments |
|
|
|
10,165 |
|
|
|
|
9,403 |
|
|
|
|
28,948 |
|
|
|
|
24,320 |
|
Dividend income |
|
|
|
5,274 |
|
|
|
|
7,618 |
|
|
|
|
20,523 |
|
|
|
|
21,672 |
|
Total investment income from controlled affiliate investments |
|
|
|
15,439 |
|
|
|
|
17,021 |
|
|
|
|
49,471 |
|
|
|
|
45,992 |
|
Total investment income |
|
|
|
72,540 |
|
|
|
|
72,390 |
|
|
|
|
219,310 |
|
|
|
|
222,842 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and debt financing expenses |
|
|
|
18,117 |
|
|
|
|
20,775 |
|
|
|
|
53,804 |
|
|
|
|
60,784 |
|
Base management fee |
|
|
|
8,897 |
|
|
|
|
9,140 |
|
|
|
|
26,484 |
|
|
|
|
27,166 |
|
Incentive fee |
|
|
|
7,020 |
|
|
|
|
3,011 |
|
|
|
|
24,176 |
|
|
|
|
18,129 |
|
Professional fees |
|
|
|
870 |
|
|
|
|
760 |
|
|
|
|
2,700 |
|
|
|
|
1,792 |
|
Directors fees |
|
|
|
173 |
|
|
|
|
182 |
|
|
|
|
521 |
|
|
|
|
535 |
|
Other general and administrative expenses |
|
|
|
2,454 |
|
|
|
|
2,234 |
|
|
|
|
7,374 |
|
|
|
|
5,386 |
|
Total expenses, net of fee waivers |
|
|
|
37,531 |
|
|
|
|
36,102 |
|
|
|
|
115,059 |
|
|
|
|
113,792 |
|
Net investment income before taxes |
|
|
|
35,009 |
|
|
|
|
36,288 |
|
|
|
|
104,251 |
|
|
|
|
109,050 |
|
Income tax expense, including excise tax |
|
|
|
1,025 |
|
|
|
|
640 |
|
|
|
|
3,200 |
|
|
|
|
2,332 |
|
Net investment income |
|
|
|
33,984 |
|
|
|
|
35,648 |
|
|
|
|
101,051 |
|
|
|
|
106,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized and unrealized gains (losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized gain (loss) on non-controlled/non-affiliate investments |
|
|
|
245 |
|
|
|
|
(50,873 |
) |
|
|
|
(7,631 |
) |
|
|
|
(61,753 |
) |
Net realized gain on non-controlled/affiliate investments |
|
|
|
3,008 |
|
|
|
|
— |
|
|
|
|
7,727 |
|
|
|
|
— |
|
Net realized loss on foreign currency transactions |
|
|
|
(465 |
) |
|
|
|
(673 |
) |
|
|
|
(888 |
) |
|
|
|
(5,207 |
) |
Net realized gain (loss) on forward currency exchange contracts |
|
|
|
20 |
|
|
|
|
(221 |
) |
|
|
|
1,916 |
|
|
|
|
(2,606 |
) |
Net change in unrealized appreciation on foreign currency translation |
|
|
|
998 |
|
|
|
|
(279 |
) |
|
|
|
967 |
|
|
|
|
3,615 |
|
Net change in unrealized appreciation on forward currency exchange contracts |
|
|
|
(5,693 |
) |
|
|
|
7,107 |
|
|
|
|
(4,289 |
) |
|
|
|
5,792 |
|
Net change in unrealized appreciation on non-controlled/non-affiliate investments |
|
|
|
(2,135 |
) |
|
|
|
41,509 |
|
|
|
|
16,925 |
|
|
|
|
35,972 |
|
Net change in unrealized appreciation on non-controlled/affiliate investments |
|
|
|
2,534 |
|
|
|
|
(1,067 |
) |
|
|
|
(10,803 |
) |
|
|
|
1,960 |
|
Net change in unrealized appreciation on controlled affiliate investments |
|
|
|
600 |
|
|
|
|
2,705 |
|
|
|
|
(7,694 |
) |
|
|
|
7,821 |
|
Total net losses |
|
|
|
(888 |
) |
|
|
|
(1,792 |
) |
|
|
|
(3,770 |
) |
|
|
|
(14,406 |
) |
Net increase in net assets resulting from operations |
|
$ |
|
33,096 |
|
|
$ |
|
33,856 |
|
|
$ |
|
97,281 |
|
|
$ |
|
92,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted net investment income per common share |
|
$ |
|
0.53 |
|
|
$ |
|
0.55 |
|
|
$ |
|
1.57 |
|
|
$ |
|
1.65 |
|
Basic and diluted increase in net assets resulting from operations per common share |
|
$ |
|
0.51 |
|
|
$ |
|
0.52 |
|
|
$ |
|
1.51 |
|
|
$ |
|
1.43 |
|
Basic and diluted weighted average common shares outstanding |
|
|
|
64,562,265 |
|
|
|
|
64,562,265 |
|
|
|
|
64,562,265 |
|
|
|
|
64,562,265 |
|
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, 2024, 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/20241105984992/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.
FAQ
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