Bain Capital Specialty Finance Declares $0.42 Quarterly Dividend

Bain Capital Specialty Finance, Inc. (NYSE: BCSF), a business development company focused on middle market lending, declared a first quarter 2026 dividend of $0.42 per share on February 26, 2026. The dividend is unchanged from the company's previous quarterly payout. Read more dividend announcements.

The dividend will be paid to stockholders of record as of March 16, 2026, with payment scheduled for March 30, 2026.

Special Dividends in Fourth Quarter

The regular dividend declaration follows two special dividends totaling $0.18 per share declared in the fourth quarter of 2025. The company paid a $0.15 per share special dividend on January 26, 2026 to stockholders of record as of December 31, 2025, and a $0.03 per share special dividend on December 30, 2025 to stockholders of record as of December 16, 2025.

Fourth Quarter Financial Results

The company reported net investment income of $0.46 per share for the fourth quarter ended December 31, 2025, representing an annualized yield on book value of 10.6%. Net income per share was $0.43, equating to an annualized return on book value of 9.9%.

Net asset value per share stood at $17.23 as of December 31, 2025, up 0.1% from September 30, 2025, excluding the impact of the special distributions totaling $0.18 per share during the quarter. Total net assets were $1.12 billion.

Chief Executive Officer Michael Ewald said the company delivered strong results driven by attractive levels of net investment income that continued to cover the dividend. He noted credit fundamentals remained strong across the highly diversified portfolio with stable credit metrics and low non-accruals.

Portfolio Composition

The total fair value of investments reached $2.51 billion as of December 31, 2025, down from $2.53 billion at September 30, 2025. During the fourth quarter, the company invested $167.9 million in 93 portfolio companies, including $68.3 million in 11 new companies and $99.6 million in 82 existing companies.

Principal repayments and sales totaled $193.2 million in the quarter, resulting in net investment fundings of negative $25.3 million. Investments on non-accrual represented 1.5% of the total investment portfolio at amortized cost and 0.8% at fair value as of December 31, 2025.

Debt and Liquidity

The company's net debt-to-equity ratio stood at 1.24x as of December 31, 2025, compared to 1.23x as of September 30, 2025. Total debt outstanding included a $272.0 million Sumitomo credit facility, $272.0 million issued through a CLO, and $950.0 million in senior unsecured notes with maturities ranging from March 2026 to March 2030.

On January 29, 2026, the company closed an offering of $350.0 million aggregate principal amount of 5.950% unsecured notes due 2031. The net proceeds were primarily used to repay outstanding secured indebtedness and for general corporate purposes.

As of December 31, 2025, the company had cash and cash equivalents of $26.2 million, restricted cash of $32.7 million, and $604.0 million of capacity under its Sumitomo credit facility. The weighted average interest rate on debt outstanding for the fourth quarter was 4.6%, down from 4.8% in the third quarter.