Bain Capital Specialty Finance had a good third quarter 2020 by all measures but – burdened by the mistakes of the past – the outlook for the dividend remains gloomy.
The BDC Reporter offers up plenty of commentary about Bain Capital Specialty Finance’s IIQ 2020 conference call transcript and summarizes our assessment of liquidity, credit and the long term outlook for the BDC.
The BDC Reporter was in two minds about how to rate Bain Capital Specialty Finance’s IIQ 2020 financial performance. We explain the decision made in the context of the information available in the press release and investor presentation, both attached.
As expected a Bain Capital Specialty Finance portfolio company in the restaurant field has filed for Chapter 11. The damage to the BDC will be minimal but there are still lessons to be learned from this setback.
We re-publish a BDC Credit Reporter update about a portfolio company with exposure from three public BDCs which has just been downgraded by Moody’s. The amounts of capital and income involved are material and worth being aware of.
“What goes up will come down” as BDC sector prices proved this week as volatility resumed. Also there were other notable developments including equity capital raised; a surprise dividend and important shareholder approvals. We also discuss the surprising change the size of the BDC sector is likely to take in the days and months ahead.
BDC common stocks prices are (almost) universally on an upward tear for a third week, and we’ve got the supporting data. Nonetheless, there’s a confusing mismatch between the mood and the fundamentals which leaves the BDC Reporter puzzled.
For a second week BDC common stock prices rally along with the broader indices. However, there’s a very long way for prices to go before returning to pre-Covid levels and multiple challenges ahead.
Bain Capital’s BDC – already close to funding a Rights Offering – is raising new unsecured debt capital at an unusually high interest rate. We review the few facts available and seek to interpret what this might mean for the BDC’s liquidity and outlook.
The BDC Reporter continues its quixotic campaign to annotate every public BDC’s IQ 2020 conference call, armed with all the various quarterly disclosures that we’ve reviewed. With Bain Capital Specialty Finance – as elsewhere – liquidity, leverage and the outlook for credit are the most important items.
With BDC IQ 2020 earnings season at an end, is the sector oversold after dropping twice as much as the S&P 500 ? The BDC Reporter discusses in detail why that might not be the case.
The BDC sector dropped back again last week after a head fake the week before. We review the numbers and evaluate what we’ve been learning from the BDCs themselves all week and what remains unknown.
The BDC Reporter begins with the latest 8-K from Bain Capital Specialty Finance about an aspect of its financing to review what we know and can surmise about its liquidity, and its future prospects. The challenges the huge BDC faces are not unique and are instructive for anybody involved in the sector at this difficult time.
Bain Capital Specialty Finance – one of the most leveraged public BDCs -is preparing to undertake a Rights Offering – a capital raising technique not used since the Great Recession. We share the few details available before the market open and discuss the potential implications for the BDC, its shareholders and for the BDC sector generally. All written in a hurry before the open, so treat with caution.
Bain Capital Specialty Finance’s IVQ 2019 results were MIXED overall. We also update how the stock price fared from the earnings release through March 6, 2020.