Bain Capital Specialty Finance prices $350M senior notes

Published 30/01/2025, 22:43
Updated 30/01/2025, 22:44
Bain Capital Specialty Finance prices $350M senior notes

BOSTON - Bain Capital Specialty Finance , Inc. (NYSE:BCSF), a business development company with a market capitalization of $1.17 billion, has announced the pricing of a $350 million offering of 5.950% senior notes due on March 15, 2030. According to InvestingPro, the company maintains a robust 9.41% dividend yield and has raised its dividend for three consecutive years. The notes, which will be used to repay existing secured debt and for general corporate purposes, may be redeemed at the company’s discretion, with a "make-whole" premium applicable in certain cases. The company’s financial position appears solid, with InvestingPro data showing a GREAT overall financial health score of 3.25 and a comfortable current ratio of 1.36x.

The transaction is slated to close around February 6, 2025, contingent on customary closing conditions. SMBC Nikko Securities America, Inc. and several other financial institutions are managing the book-running, with additional co-managers also participating.

Investors are encouraged to review the investment details and risks associated with BCSF as outlined in the pricing term sheet and prospectus supplement filed with the U.S. Securities and Exchange Commission (SEC). The offering is subject to the terms outlined in these documents and is not an offer to sell in any jurisdiction where such sale would be unlawful.

Bain Capital Specialty Finance primarily provides financing to middle-market companies and is managed by BCSF Advisors, LP. Since beginning its investment operations in mid-October 2016, BCSF has invested over $8 billion in various debt and equity instruments.

This announcement includes forward-looking statements which are based on current expectations and projections about future events. These statements are subject to risks, uncertainties, and changes in circumstances that could significantly affect future results. The company does not undertake any obligation to publicly update or revise any forward-looking statements. For comprehensive analysis and additional insights, investors can access the detailed Pro Research Report available on InvestingPro, which covers this and over 1,400 other US equities with expert analysis and actionable intelligence.

The information provided here is based on a press release statement and is intended for investors considering the company’s securities.

In other recent news, Bain Capital Specialty Finance disclosed a rise in net investment income per share to $0.53, marking an 11.9% annualized return. This increase covered dividends by 126% and boosted the net asset value per share to $17.76. The company’s gross originations showed significant growth, and the investment portfolio maintained solid credit quality. A fourth-quarter dividend of $0.45 per share was declared by Bain Capital, including a special dividend.

The company foresees continued deal flow and credit discipline in the upcoming periods. However, there was a slight decrease in the proportion of the investment portfolio performing as expected or better, dropping from 97% to 96%. In addition, the debt-to-equity ratio saw an increase to 1.14 times.

These recent developments suggest that Bain Capital Specialty Finance is maintaining a strong financial position, with a disciplined investment strategy and a focus on maintaining credit quality. The company is optimistic about sourcing new lending opportunities and managing future financial obligations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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