Bain Capital Specialty Finance (NYSE: BCSF) reported Q2 EPS of $0.37, $0.01 better than the analyst estimate of $0.36.

“Despite the continued challenging economic backdrop, we delivered solid financial results driven by stable credit quality across our diversified portfolio of primarily first lien senior secured loans,” said Michael Ewald, President and Chief Executive Officer of BCSF. “We also strengthened our balance sheet during the quarter as our demonstrated access to capital markets further positioned the Company to better withstand continued market uncertainty and volatility.”

• Net investment income per share was $0.37, as compared to $0.44 for the quarter ended March 31, 2020;
• Net income (loss) per share was $0.40 as compared to $(2.02) for the quarter ended March 31, 2020;
• Net asset value per share as of June 30, 2020 was $15.81 as compared to $15.82 as of March 31, 2020 pro-forma adjusted for the rights offering;(1)
• Credit quality remained stable during the quarter with no new investments placed on non-accrual. Non-accrual investments represented 1.1% of the total investment portfolio at fair value as of June 30, 2020;
• During the quarter, the Company completed a rights offering issuing 12.9 million common shares with total gross proceeds of $131.9 million. This new equity capital allowed the Company to strengthen its balance sheet as demonstrated by the significant decrease in the Company’s leverage ratio quarter-over-quarter. The Company’s ending debt-to-equity (net of cash) ratio was 1.42x as of June 30, 2020 as compared to 1.78x as of March 31, 2020;
• In June 2020, the Company completed an offering of $150.0 million aggregate principal amount of 8.50% senior unsecured notes due 2023 (the “2023 Notes”). The 2023 Notes are subject to a two-year non-call period, unless redeemed earlier at par plus a “make-whole” premium. The proceeds from the offering were used to pay down existing indebtedness under the Company’s secured credit facilities and enhanced the Company’s available liquidity; and
• Subsequent to quarter-end, the Company’s Board of Directors declared a dividend of $0.34 per share for the third quarter of 2020 payable to stockholders of record as of September 30, 2020.(2)

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