Bain Capital Specialty Finance, Inc. Announces March 31, 2026 Financial Results and Declares Second Quarter 2026 Dividend of $0.42 per Share | BCSF Stock News

BOSTON--(BUSINESS WIRE)--Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the “Company”, “our” or “we”) today announced financial results for the first quarter ended March 31, 2026, and that its Board of Directors (the “Board”) has declared a dividend of $0.42 per share for the second quarter of 2026."BCSF’s credit fundamentals remained sound across our portfolio with stable, low non-accruals and attractive net investment income that continued to cover our dividend,” said Michael Ewald, Chief Executive Officer of BCSF. “Despite market volatility and a challenging macroeconomic backdrop, we maintained a disciplined and selective approach to new investment activity, continuing to focus on structures that provide strong lender controls. Given Bain Capital’s longstanding presence and expertise in the core middle market, we believe BCSF remains well-positioned to navigate the current market environment through its predominantly first lien portfolio, broad diversification across industries, and durable balance sheet.”Quarterly HighlightsNet investment income (NII) per share was $0.42, equating to an annualized NII yield on book value of 10.0%(1);Net income per share was $0.05, equating to an annualized return on book value of 1.2%(1);Net asset value per share as of March 31, 2026 was $16.86, as compared to $17.23 as of December 31, 2025;Gross and net investment fundings were $243.2 million and $(12.2) million, respectively; ending net debt-to-equity was 1.28x, as compared to 1.24x as of December 31, 2025(2);Investments on non-accrual represented 1.4% and 0.6% of the total investment portfolio at amortized cost and fair value, respectively, as of March 31, 2026, down from 1.5% and 0.8% of the total investment portfolio at amortized cost and fair value, respectively, as of December 31, 2025;During the quarter, the Company closed an offering of $350.0 million aggregate principal amount of 5.950% unsecured notes due 2031 (the “March 2031 Notes”). In connection with these notes, the Company entered into an interest rate swap agreement to receive a fixed interest rate of 5.950% per annum and pay a floating interest rate of SOFR plus 2.28% per annum; andSubsequent to quarter-end, the Company’s Board of Directors declared a dividend of $0.42 per share for the second quarter of 2026 payable to stockholders of record as of June 15, 2026(3).Selected Financial Highlights($ in millions, unless otherwise noted)Q1 2026Q4 2025Net investment income per share$0.42$0.46Net investment income$27.4$29.7Earnings per share$0.05$0.43Regular dividends per share declared and payable$0.42$0.42Special dividends per share declared and payable$-$0.18($ in millions, unless otherwise noted)As ofMarch 31, 2026As ofDecember 31, 2025Total fair value of investments$2,470.8$2,508.4Total assets$2,601.7$2,662.6Total net assets$1,093.6$1,117.4Net asset value per share$16.86$17.23Portfolio and Investment ActivityFor the three months ended March 31, 2026, the Company invested $243.2 million in 107 portfolio companies, including $123.6 million in 13 new companies, $110.6 million in 93 existing companies and $9.0 million in SLP. The Company had $255.4 million of principal repayments and sales in the quarter, resulting in net investment fundings of $(12.2) million.Investment Activity for the Quarter Ended March 31, 2026:($ in millions)Q1 2026Q4 2025Investment Fundings$243.2$167.9Sales and Repayments$255.4$193.2Net Investment Activity$(12.2)$(25.3)As of March 31, 2026, the Company’s investment portfolio had a fair value of $2,470.8 million, comprised of investments in 212 portfolio companies operating across 30 different industries.Investment Portfolio at Fair Value as of March 31, 2026:Investment Type$ in Millions% of TotalFirst Lien Senior Secured Loan$1,631.166.0%Second Lien Senior Secured Loan30.11.2Subordinated Debt81.73.3Preferred Equity165.16.7Equity Interest167.36.8Warrants0.80.0Investment Vehicles394.716.0Subordinated Note in ISLP190.77.7Equity Interest in ISLP31.61.3Subordinated Note in SLP166.96.8Preferred and Equity Interest in SLP5.50.2Total$2,470.8100.0%As of March 31, 2026, the weighted average yield on the investment portfolio at amortized cost and fair value were 10.8% and 10.9%, respectively, as compared to 10.8% and 10.9%, respectively, as of December 31, 2025(4)(5). 92.6% of the Company’s debt investments at fair value were in floating rate securities.As of March 31, 2026, six portfolio companies were on non-accrual status, representing 1.4% and 0.6% of the total investment portfolio at amortized cost and fair value, respectively.As of March 31, 2026, ISLP’s investment portfolio had an aggregate fair value of $711.9 million, comprised of investments in 40 portfolio companies operating across 17 different industries. The investment portfolio on a fair value basis was comprised of 94.0% first lien senior secured loans, 0.7% second lien senior secured loans and 5.3% equity interests. 100% of ISLP’s debt investments at fair value were in floating rate securities.As of March 31, 2026, SLP’s investment portfolio had an aggregate fair value of $1,599.1 million, comprised of investments in 106 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 March 31, 2026 and December 31, 2025, total investment income was $66.2 million and $68.2 million, respectively.Total expenses (before taxes) for the three months ended March 31, 2026 and December 31, 2025 were $37.9 million and $37.7 million, respectively.Net investment income for the three months ended March 31, 2026 and December 31, 2025 was $27.4 million or $0.42 per share and $29.7 million or $0.46 per share, respectively.During the three months ended March 31, 2026, the Company had net realized and unrealized losses of $24.0 million.Net increase in net assets resulting from operations for the three months ended March 31, 2026 was $3.4 million, or $0.05 per share.Capital and LiquidityAs of March 31, 2026, the Company had total principal debt outstanding of $1,467.0 million, including $195.0 million outstanding in the Company’s Sumitomo Credit Facility, $272.0 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 October 2026, $350.0 million outstanding in the Company's senior unsecured notes due March 2030, and $350.0 million outstanding in the Company's senior unsecured notes due March 2031.For the three months ended March 31, 2026, the weighted average interest rate on debt outstanding was 4.6%, as compared to 4.6% for the three months ended December 31, 2025.As of March 31, 2026, the Company had cash and cash equivalents (including foreign cash) of $16.6 million, restricted cash and cash equivalents of $17.6 million, $34.6 million of unsettled trades, net of receivables and payables of investments, and $660.0 million of capacity under its Sumitomo Credit Facility. As of March 31, 2026, the Company had $442.6 million of undrawn investment commitments.As of March 31, 2026, the Company’s debt-to-equity and net debt-to-equity ratios were 1.34x and 1.28x, respectively, as compared to 1.32x and 1.24x, respectively, as of December 31, 2025(3).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 second quarter dividend is payable on June 29, 2026 to stockholders of record as of June 15, 2026.(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 May 12, 2026. 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: 1-800-245-3047International: 1-203-518-9765Conference ID: BAINAll participants will need to reference “Bain Capital Specialty Finance - First Quarter Ended March 31, 2026 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 May 26, 2026 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: 11161743Bain Capital Specialty Finance, Inc.Consolidated Statements of Assets and Liabilities(in thousands, except share and per share data) As ofAs ofMarch 31, 2026December 31, 2025(Unaudited)AssetsInvestments at fair value:Non-controlled/non-affiliate investments (amortized cost of $1,925,871 and $1,891,513, respectively)$1,916,461$1,905,297Non-controlled/affiliate investments (amortized cost of $7,504 and $7,504, respectively)19,16418,674Controlled affiliate investments (amortized cost of $549,483 and $603,650, respectively)535,173584,470Cash and cash equivalents12,97323,092Foreign cash (cost of $3,026 and $2,477, respectively)3,6223,151Restricted cash and cash equivalents17,59332,667Collateral on derivatives9,81310,993Deferred financing costs3,2853,543Interest receivable on investments35,09138,023Interest rate swap4,9797,976Receivable for sales and paydowns of investments38,10128,856Prepaid insurance277489Unrealized appreciation on forward currency exchange contracts224—Dividend receivable4,9205,354Total Assets$2,601,676$2,662,585LiabilitiesDebt (net of unamortized debt issuance costs of $17,144 and $10,110, respectively)$1,454,657$1,470,796Interest payable10,91012,376Payable for investments purchased3,5272,110Collateral payable on derivatives4,76012,907Unrealized depreciation on forward currency exchange contracts2,7399,061Base management fee payable9,0859,408Incentive fee payable5,6185,877Accounts payable and accrued expenses16,82512,910Distributions payable—9,730Total Liabilities1,508,1211,545,175Commitments 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 64,868,507 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively6565Paid in capital in excess of par value1,161,1101,161,110Total distributable loss(67,620)(43,765)Total Net Assets1,093,5551,117,410Total Liabilities and Total Net Assets$2,601,676$2,662,585Net asset value per share$16.86$17.23See Notes to Consolidated Financial Statements Bain Capital Specialty Finance, Inc.Consolidated Statements of Operations(in thousands, except share and per share data)(Unaudited) For the Three Months Ended March 31,20262025IncomeInvestment income from non-controlled/non-affiliate investments:Interest from investments$39,333$41,672Dividend income6191,725PIK income8,7056,606Other income1,4762,833Total investment income from non-controlled/non-affiliate investments50,13352,836Investment income from non-controlled/affiliate investments:Interest from investments28PIK income—17Other income2142Total investment income from non-controlled/affiliate investments2367Investment income from controlled affiliate investments:Interest from investments10,0339,148Dividend income5,9834,786PIK income22Total investment income from controlled affiliate investments16,01813,936Total investment income66,17466,839ExpensesInterest and debt financing expenses20,25218,904Base management fee9,0859,068Incentive fee5,6182,222Professional fees700714Directors fees180174Other general and administrative expenses2,0692,571Total expenses, net of fee waivers37,90433,653Net investment income before taxes28,27033,186Income tax expense, including excise tax9061,076Net investment income27,36432,110Net realized and unrealized gains (losses)Net realized gain (loss) on non-controlled/non-affiliate investments3,820(20,986)Net realized loss on non-controlled/affiliate investments—(2,967)Net realized loss on controlled affiliate investments(13,448)—Net realized gain (loss) on foreign currency transactions66(249)Net realized loss on forward currency exchange contracts(2,989)(2,405)Net change in unrealized appreciation on foreign currency translation(135)435Net change in unrealized appreciation on forward currency exchange contracts6,546(2,073)Net change in unrealized appreciation on non-controlled/non-affiliate investments(23,194)23,993Net change in unrealized appreciation on non-controlled/affiliate investments490(1,866)Net change in unrealized appreciation on controlled affiliate investments4,8702,555Total net loss(23,974)(3,563)Net increase in net assets resulting from operations$3,390$28,547Basic and diluted net investment income per share of common stock$0.42$0.50Basic and diluted increase in net assets resulting from operations per share of common stock$0.05$0.44Basic and diluted weighted average common stock outstanding64,868,50764,676,192 See 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 March 31, 2026, BCSF has invested approximately $9,975.9 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/20260511461601/en/Investor Contact:Katherine SchneiderTel. (212) 803-9613investors@baincapitalbdc.comMedia Contact:Scott LessneTel. +1 (212) 300-1800slessne@apcoworldwide.comSource: Bain Capital Specialty Finance, Inc.