Bain Capital Specialty Finance Inc (BCSF) Reports Q3 2023 Earnings, Declares Q4 Dividend of $0. ...
BCSF's net investment income per share for Q3 2023 was $0.55, with an annualized NII yield on book value of 12.6%
Net income per share for the same period was $0.52, equating to an annualized return on book value of 12.0%
The company's net asset value per share as of September 30, 2023, was $17.54, compared to $17.44 as of June 30, 2023
BCSF's Board of Directors declared a dividend of $0.42 per share for Q4 2023
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On November 7, 2023, Bain Capital Specialty Finance Inc (NYSE:BCSF) announced its financial results for the third quarter ended September 30, 2023. The company reported a strong quarter of earnings, driven by the benefits of higher interest rates across its diversified portfolio of largely floating rate loans and stable credit quality in the portfolio.
Financial Highlights
BCSF's net investment income (NII) per share for Q3 2023 was $0.55, equating to an annualized NII yield on book value of 12.6%. The net income per share for the same period was $0.52, equating to an annualized return on book value of 12.0%. The net asset value per share as of September 30, 2023, was $17.54, compared to $17.44 as of June 30, 2023.
The company's gross and net investment fundings for the quarter were $109.5 million and $6.7 million, respectively. The ending net debt-to-equity was 1.12x, compared to 1.13x as of June 30, 2023.
Portfolio and Investment Activity
During Q3 2023, BCSF invested $109.5 million in 40 portfolio companies, including $52.1 million in two new companies and $57.4 million in 38 existing companies. The company had $102.8 million of principal repayments and sales in the quarter, resulting in net investment fundings of $6.7 million.
As of September 30, 2023, the company's investment portfolio had a fair value of $2,390.2 million, comprised of investments in 143 portfolio companies operating across 30 different industries. The weighted average yield on the investment portfolio at amortized cost and fair value were 12.9% and 13.1%, respectively, as compared to 12.8% and 13.0%, respectively, as of June 30, 2023.
Results of Operations
For the three months ended September 30, 2023, total investment income was $72.4 million, a decrease from $75.7 million for the three months ended June 30, 2023. The decrease in investment income was primarily due to a decrease in interest income and other income.
Total expenses (before taxes) for the three months ended September 30, 2023, were $36.1 million, slightly higher than $35.7 million for the three months ended June 30, 2023. Net investment income for the three months ended September 30, 2023, was $35.6 million or $0.55 per share, compared to $38.9 million or $0.60 per share for the three months ended June 30, 2023.
Capital and Liquidity
As of September 30, 2023, BCSF had total principal debt outstanding of $1,378.5 million. The weighted average interest rate on debt outstanding was 5.4%, compared to 5.2% for the three months ended June 30, 2023. The company had cash and cash equivalents (including foreign cash) of $79.5 million, restricted cash and cash equivalents of $25.9 million, and $224.2 million of capacity under its Sumitomo Credit Facility.
BCSF's Board of Directors declared a dividend of $0.42 per share for the fourth quarter of 2023, payable to stockholders of record as of December 29, 2023.
Explore the complete 8-K earnings release (here) from Bain Capital Specialty Finance Inc for further details.
This article first appeared on GuruFocus.
