Bain Capital Specialty Finance, Inc. Announces September 30, 2025 Financial Results and Declares Fourth Quarter 2025 Dividend of $0.42 per Share | BCSF Stock News

11/10/2025 - 05:26 PM BOSTON--(BUSINESS WIRE)--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 HIGHLIGHTSNet 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; andSubsequent 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 2025Q2 2025Net investment income per share$0.45$0.47Net investment income$29.2$30.6Earnings per share$0.29$0.37Dividends per share declared and payable$0.45$0.45($ in millions, unless otherwise noted)As ofSeptember 30, 2025As ofJune 30, 2025Total fair value of investments$2,534.1$2,501.8Total assets$2,716.0$2,774.3Total net assets$1,128.5$1,139.0Net asset value per share$17.40$17.56PORTFOLIO AND INVESTMENT ACTIVITYFor 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 2025Q2 2025Investment Fundings$340.1$529.6Sales and Repayments$296.1$502.3Net Investment Activity$44.0$27.3As 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 TotalFirst Lien Senior Secured Loan$1,639.464.6%Second Lien Senior Secured Loan30.01.2Subordinated Debt93.33.7Preferred Equity146.55.8Equity Interest225.98.9Warrants0.80.0Investment Vehicles398.215.8Subordinated Note in ISLP190.77.6Equity Interest in ISLP41.01.9Subordinated Note in SLP157.96.2Preferred and Equity Interest in SLP8.60.1Total$2,534.1100.0%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 OPERATIONSFor 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 LIQUIDITYAs 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 INFORMATIONA 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: 1-800-343-4136International: 1-203-518-9843Conference ID: BAINAll 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: 1-844-512-2921International: 1-412-317-6671Conference ID: 11160408Bain Capital Specialty Finance, Inc.Consolidated Statements of Assets and Liabilities(in thousands, except share and per share data)As ofAs ofSeptember 30,2025December 31,2024(Unaudited)AssetsInvestments at fair value:Non-controlled/non-affiliate investments (amortized cost of $1,913,737 and $1,784,019, respectively)$1,934,475$1,773,742Non-controlled/affiliate investments (amortized cost of $7,480 and $77,269, respectively)15,15875,733Controlled affiliate investments (amortized cost of $603,520 and $585,702, respectively)584,465581,714Cash and cash equivalents40,87451,562Foreign cash (cost of $18,858 and $2,640, respectively)19,7301,963Restricted cash and cash equivalents26,16845,541Collateral on derivatives11,1109,755Deferred financing costs3,8074,591Interest receivable on investments37,24139,164Interest rate swap9,062—Receivable for sales and paydowns of investments29,16237,760Prepaid insurance727197Unrealized appreciation on forward currency exchange contracts—4,690Dividend receivable4,0575,745Total Assets$2,716,036$2,632,157LiabilitiesDebt (net of unamortized debt issuance costs of $11,205 and $4,929, respectively)$1,496,360$1,390,270Interest payable12,94513,860Payable for investments purchased2,68229,490Collateral payable on derivatives8,310—Unrealized depreciation on forward currency exchange contracts10,6191,185Base management fee payable9,4309,160Incentive fee payable4,5994,696Accounts payable and accrued expenses42,54414,771Distributions payable—29,053Total Liabilities1,587,4891,492,485Commitments and Contingencies (See Note 10)Net AssetsCommon 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, respectively6565Paid in capital in excess of par value1,164,0451,159,493Total distributable loss(35,563)(19,886)Total Net Assets1,128,5471,139,672Total Liabilities and Total Net Assets$2,716,036$2,632,157Net asset value per share$17.40$17.65See Notes to Consolidated Financial StatementsBain Capital Specialty Finance, Inc.Consolidated Statements of Operations(in thousands, except share and per share data)(Unaudited)For the Three Months EndedSeptember 30,For the Nine Months EndedSeptember 30,2025202420252024IncomeInvestment income from non-controlled/non-affiliate investments:Interest from investments$43,677$45,135$129,641$134,193Dividend income6008265,2651,261PIK income7,4625,23121,56915,941Other income1,5385,7048,52914,100Total investment income from non-controlled/non-affiliate investments53,27756,896165,004165,495Investment income from non-controlled/affiliate investments:Interest from investments—1201352,980Dividend income—85—906PIK income——30458Other income67—109—Total investment income from non-controlled/affiliate investments672052744,344Investment income from controlled affiliate investments:Interest from investments10,27310,16529,22828,948Dividend income3,5815,27410,49020,523PIK income2—8—Total investment income from controlled affiliate investments13,85615,43939,72649,471Total investment income67,20072,540205,004219,310ExpensesInterest and debt financing expenses20,31018,11760,98653,804Base management fee9,4308,89727,75526,484Incentive fee4,5997,02012,26724,176Professional fees7138702,1412,700Directors fees182173538521Other general and administrative expenses1,9652,4546,4647,374Total expenses, net of fee waivers37,19937,531110,151115,059Net investment income before taxes30,00135,00994,853104,251Income tax expense, including excise tax8011,0252,9533,200Net investment income29,20033,98491,900101,051Net realized and unrealized gains (losses)Net realized gain (loss) on non-controlled/non-affiliate investments1,345245(14,780)(7,631)Net realized gain (loss) on non-controlled/affiliate investments(11,081)3,008(14,759)7,727Net realized gain (loss) on foreign currency transactions335(465)667(888)Net realized gain (loss) on forward currency exchange contracts(1,016)20(4,830)1,916Net change in unrealized appreciation on foreign currency translation(183)9981,736967Net change in unrealized appreciation on forward currency exchange contracts3,023(5,693)(14,124)(4,289)Net change in unrealized appreciation on non-controlled/non-affiliate investments(485)(2,135)31,01516,925Net change in unrealized appreciation on non-controlled/affiliate investments12,4592,5349,214(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$97,281Basic and diluted net investment income per share of common stock$0.45$0.53$1.42$1.57Basic and diluted increase in net assets resulting from operations per share of common stock$0.29$0.51$1.10$1.51Basic and diluted weighted average common stock outstanding64,868,50764,562,26564,805,10664,562,265See Notes to Consolidated Financial StatementsAbout 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 StatementsThis 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/Investor Contact:Katherine SchneiderTel. (212) 803-9613investors@baincapitalbdc.comMedia Contact:Charlyn LuskTel. (646) 502-3549clusk@stantonprm.comSource: Bain Capital Specialty Finance, Inc.