Bain Capital Specialty Finance(NYSE: BCSF) reported Q4 EPS of $0.41, $0.01 better than the analyst estimate of $0.40.

“Our positive results reflect an active quarter which included originating $341.4 million of new investments in 36 portfolio companies across 18 different industries,” said Michael Ewald, President and Chief Executive Officer of BCSF. “We are also pleased to have recently closed on an amendment and extension of our credit facilities which is consistent with our focus on identifying attractive opportunities to increase shareholder value while continuing to grow our portfolio in a disciplined manner where we have strong lender controls.”

QUARTERLY HIGHLIGHTS

• The Company announced a dividend of $0.41 per share for the first quarter of 2020 payable to shareholders of record as of March 31, 2020 (1).
• Net investment income for the quarter ended December 31, 2019 was $21.3 million or $0.41 per share, as compared to $21.2 million or $0.41 per share for the quarter ended September 30, 2019.
• Net income for the quarter ended December 31, 2019 was $21.4 million or $0.41 per share, as compared to $18.2 million or $0.35 per share for the quarter ended September 30, 2019.
• Net asset value per share was $19.72 as of December 31, 2019, an increase from $19.71 as of September 30, 2019.
• On January 8, 2020, the Company entered into an amended and restated credit agreement (the “Amendment”) of its BCSF Revolving Credit Facility with Goldman Sachs Bank USA, as Sole Lead Arranger, Syndication Agent and Administrative Agent, and U.S. Bank National Association as Collateral Administrator, Collateral Agent and Collateral Custodian (collectively, the “Credit Facility Parties”), which amended and restated the terms of the Existing Credit Facility. The Amendment amends the Existing Credit Facility to, among other things, modify various financial covenants, including removing a liquidity covenant and adding a net asset value covenant with respect to the Company, as sponsor.
• On January 29, 2020, the Company entered into an amended and restated loan and security agreement (the “JPM Credit Agreement” or the “JPM Credit Facility”) as Borrower, with JPMorgan Chase Bank, National Association, as Administrative Agent, and Wells Fargo Bank, National Association as Collateral Administrator, Collateral Agent, Securities Intermediary and Bank. The Amended and Restated Loan and Security Agreement amends the Existing Loan and Security Agreement to, among other things, (1) decrease the financing limit under the agreement from $666.6 million to $500.0 million; (2) decrease the minimum facility amount from $466.6 million to $300.0 million period from January 29, 2020 to July 29, 2020 (the minimum facility amount will increase to $350.0 million after July 29, 2020 until the end of the reinvestment period); (3) decrease the interest rate on financing from 2.75% per annum over the applicable London Interbank Offered Rate (“LIBOR”) to 2.375% per annum over the applicable LIBOR; (4) extend the scheduled termination date of the agreement from November 29, 2022 to January 29, 2025; and (5) increase the advance rate from 62.5% to 63.5%.

For earnings history and earnings-related data on Bain Capital Specialty Finance (BCSF) click here.