As the uncertainty over Trump’s tariffs continues, the Zacks SBIC & Commercial Finance industry faces challenges from relatively high interest rates and sluggish economic growth, dampening product demand and refinancing activities. Asset quality may weaken as borrowers struggle to service debt amid prolonged higher rates and geopolitical risks. However, regulatory changes since 2018 have eased leverage limits, allowing more flexible funding and growth opportunities, helping industry players. Therefore, some ...

Business Development Companies continue to be one of my favorite sectors to utilize as a way to take advantage of the higher interest rate environment. However, a prolonged period of unfavorable market conditions has provenFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potent ...

Bain Capital Specialty Finance, Inc. PLEASE CONSIDER THE FOLLOWING In this material Bain Capital Credit, LP, Bain Capital Credit (Australia), Pty. Ltd., Bain Capital Credit, Ltd., Bain Capital Investments (Europe) Limited, Bain Capital Investments (Ireland) Limited, Bain Capital Credit CLO Advisors, LP, Bain Capital Credit U.S. CLO Manager, LLC, Bain Capital Credit U.S. CLO Manager II, LP, Bain Capital Credit (Asia) Limited, Bain Capital (Singapore) PTE. LTD, Bain Capital Private Equity Japan LLC, BCPC Advi ...

Bain Capital Specialty Finance (BCSF) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Speaker0 Good day, everyone, and welcome to the Bain Capital Specialty Finance First Quarter Ended 03/31/2025 Earnings Conference Call. At this time, all participants are in a listen only mode. Later, you will have the opportunity to ask questions during the question and answer session. Please note this call is being recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the confer ...

Financial Results Announcement - Bain Capital Specialty Finance, Inc. will release its financial results for Q1 2025 on May 5, 2025, after market close[6] - A conference call to discuss the financial results is scheduled for May 6, 2025, at 8:30 a.m. Eastern Time[6] - The press release regarding the financial results is attached as Exhibit 99.1[8] Regulatory Compliance - The report is filed under the Securities Exchange Act of 1934, ensuring compliance with regulatory requirements[7] - The company has not indicated if it is an emerging growth company[5] Financial Metrics and Performance - No specific financial metrics or performance indicators have been disclosed in the current report[6] - The document does not provide any user data or future outlook beyond the scheduled earnings release[6] Business Developments - The report does not include any information on new products, technologies, or market expansion strategies[6] - There are no updates on mergers or acquisitions mentioned in the current report[6] Company Information - The company is registered on the New York Stock Exchange under the symbol BCSF[5]

Investment Overview - The company has invested approximately $9,060.8 million in aggregate principal amount of debt and equity investments since operations commenced on October 13, 2016, through March 31, 2025 [306]. - The company focuses on middle-market companies with annual EBITDA between $10.0 million and $150.0 million, but may invest in larger or smaller companies [308]. - The company may invest up to 30% of its portfolio in non-qualifying investments, including non-U.S. companies [315]. - The company may invest in distressed debt and other junior securities on an opportunistic basis, although this is not the principal focus of its investment strategy [308]. - In Q1 2025, the company invested $277.2 million in 89 portfolio companies, with a net increase in investments of $30.8 million after $246.4 million in principal repayments and sales [331]. - In Q1 2024, the company invested $403.1 million in 83 portfolio companies, resulting in a net increase of $107.1 million after $296.0 million in principal repayments and sales [332]. - The company had 175 portfolio companies as of March 31, 2025, up from 168 as of December 31, 2024 [334]. Financial Performance - The primary revenue source is interest income from debt investments, with additional income from loan origination fees and capital gains [309]. - As of March 31, 2025, the total investment income was $66.8 million, a decrease from $74.5 million in the same period of 2024 [347]. - Net investment income before taxes for the three months ended March 31, 2025, was $33.2 million, compared to $35.0 million for the same period in 2024 [347]. - The net realized loss for the three months ended March 31, 2025, was $26.6 million, contrasting with a net realized gain of $3.9 million in the same period of 2024 [347]. - For the three months ended March 31, 2025, the net realized losses on investments were $24.0 million, compared to net realized gains of $2.2 million for the same period in 2024 [356]. - The increase in net assets resulting from operations was $28.5 million for the three months ended March 31, 2025, down from $35.1 million in 2024 [362]. Investment Portfolio - As of March 31, 2025, the investment portfolio's total amortized cost was $2,456.1 million, with 98.6% classified as performing investments [335]. - The fair value of performing investments as of March 31, 2025, was $2,446.9 million, representing 99.3% of the total fair value [335]. - The company reported a total investment portfolio value of $2,550.3 million as of March 31, 2025 [336]. - The weighted average yield of the investment portfolio as of March 31, 2025, was 11.5% [333]. - The weighted average yield of the investment portfolio decreased to 11.5% as of March 31, 2025, down from 12.9% as of March 31, 2024 [348]. Debt and Financing - Total debt as of March 31, 2025, was $1,458.5 million, compared to $1,395.2 million as of December 31, 2024 [374]. - The company had approximately $699.0 million of availability on its Sumitomo Credit Facility as of March 31, 2025, an increase from $412.3 million at December 31, 2024 [366]. - Total debt obligations amount to $1,458,500, with $300,000 due within one year and $506,000 due in 3-5 years [402]. - Interest and debt financing expenses increased to approximately $18.9 million for the three months ended March 31, 2025, compared to $18.1 million for the same period in 2024 [351]. Asset Coverage and Risk Management - The company's asset coverage was 178.2% as of March 31, 2025, indicating a strong leverage position [322]. - The asset coverage ratio was 178.2% as of March 31, 2025, down from 181.7% at December 31, 2024 [364]. - The investment decision-making process includes sourcing, due diligence, credit committee approval, portfolio construction, and risk management [323]. - The company invests in illiquid loans and securities, exposing it to financial market risks including interest rate changes [403]. Dividends and Distributions - Total distributions declared for the three months ended March 31, 2025, amounted to $29,191,000, with a per share distribution of $0.45 [376]. - For the same period in 2024, total distributions declared were $29,053,000, also with a per share distribution of $0.45 [377]. - The company intends to distribute dividends to stockholders of at least 90% of net ordinary income and net short-term capital gains to maintain RIC tax treatment [379]. - The company has adopted a dividend reinvestment plan allowing stockholders to reinvest cash dividends into additional shares of common stock [381]. Related Party Transactions and Management Fees - The company has entered into related party transactions, including an Amended Advisory Agreement and an Administration Agreement [384]. - The base management fee under the Amended Advisory Agreement is set at 1.5% of the average value of gross assets, decreasing to 1.0% if the asset coverage ratio falls below 200% [398]. Currency and Market Risks - The net change in unrealized appreciation on investments due to foreign currency was $4.2 million for the three months ended March 31, 2025, compared to a loss of $2.2 million in 2024 [360]. - The company reported a net realized loss on foreign currency transactions of $0.2 million for the three months ended March 31, 2025, compared to a gain of $0.0 million in 2024 [356]. - A hypothetical 100 basis points increase in interest rates would result in a net increase in investment income of $7,320 [404]. - A hypothetical 200 basis points decrease in interest rates would lead to a net decrease in investment income of $14,371 [404]. - The company may employ hedging techniques to minimize foreign exchange risks but cannot assure effectiveness [404]. Valuation and Investment Strategy - The valuation of portfolio investments is overseen by the Board, with preliminary valuations conducted by the Advisor and periodic reviews by an independent valuation firm [401]. - The company expects to value many portfolio investments at fair value, which may differ significantly from market values due to lack of readily available market [403].

With volatility picking up in recent months from tariffs, sparking fears of a potential recession, the BDC sector ( BIZD ) may not be the place for risk-averse investors at the moment.Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran w ...

A downtrend has been apparent in Bain Capital Specialty (BCSF) lately with too much selling pressure. The stock has declined 6.9% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicator ...

Group 1 - The article provides a Q4 update on Bain Capital Specialty Finance (NYSE: BCSF), which is part of Bain Capital Credit's private credit umbrella managing $12 billion in assets [1] - BCSF is currently overweight in sectors such as Defense, Technology, and Business Services [1]

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