The equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms.Analyst’s Disclosure:I/we have a beneficial long position in the shares of TRIN, HTGC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses ...

Core Insights - The equity market serves as a significant mechanism for wealth creation or destruction over the long term through daily price fluctuations [1] Group 1: Investment Focus - Pacifica Yield aims to create long-term wealth by focusing on undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

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Thereafter, Mike and Amit will discuss our investment portfolio and financial results in greater detail, and we'll leave some time for questions at the end. Yesterday, after market close, we delivered another quarter of solid results for the third quarter ended September 30. Q3 net investment income per share was $0.45, representing an annualized yield on book value of 10.3% and exceeding our regular quarterly dividend by 7%. Q3 earnings per share were $0.29, reflecting an annualized return on book value of ...

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Financial Data and Key Metrics Changes - Q3 net investment income per share was $0.45, representing an annualized yield on book value of 10.3%, exceeding the regular quarterly dividend by 7% [5] - Q3 earnings per share were $0.29, reflecting an annualized return on book value of 6.6% [5] - Net asset value (NAV) per share was $17.40, a decline of $0.16 from the prior quarter [5][22] - Total investment income for Q3 was $67.2 million, down from $71 million in the previous quarter [20] - Net investment income for the quarter was $29.2 million, or $0.45 per share, compared to $30.6 million, or $0.47 per share for the prior quarter [21] Business Line Data and Key Metrics Changes - Gross originations in Q3 were $340 million, with 36% to new companies and 64% to existing companies [14][15] - First lien senior secured loans comprised 89% of new investments, with a weighted average spread of approximately 550 basis points [15][16] - The investment portfolio at fair value totaled approximately $2.5 billion across 195 portfolio companies [17] Market Data and Key Metrics Changes - The weighted average yield on the investment portfolio at amortized cost and fair value was 11.1% and 11.2%, respectively, down from 11.4% [18] - Median net leverage across borrowers was 4.7 times, down from 4.9 times in the prior quarter [18] - Non-accrual investments represented 1.5% and 0.7% of the total investment portfolio at amortized cost and fair value, respectively [19] Company Strategy and Development Direction - The company focuses on the core middle market, leveraging its industry expertise to identify attractive investment opportunities [6][9] - The strategy includes maintaining a disciplined approach to terms and structure, with an emphasis on downside management [9][16] - The company aims to maintain its regular dividend level while exploring growth levers to offset potential headwinds from a lower interest rate environment [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic indicators such as inflation and unemployment remain elevated but stable, providing clarity for new deal activity [6] - The company believes it is well-positioned to continue delivering attractive results for shareholders, with a compelling stock price valuation relative to credit fundamentals [13] - Management expressed confidence in maintaining dividend coverage despite potential refinancing pressures and lower interest rates [11][35] Other Important Information - The board declared a fourth quarter dividend of $0.42 per share, with total dividends for Q4 amounting to $0.45 per share [6] - The company has a strong liquidity position totaling $570 million, including undrawn capacity on its revolving credit facility [23] Q&A Session Summary Question: Discussion on risk associated with increased spreads and leverage - Management emphasized a focus on maintaining on-balance sheet leverage ratios and highlighted the importance of diversification to mitigate risks [26][28] Question: Inquiry about aircraft valuations and potential expansion - Management acknowledged a small write-down on aircraft but stated it does not reflect a change in underwriting thesis, indicating ongoing interest in asset-backed investments [29][31] Question: Concerns regarding NII earnings and refinancing impacts - Management expressed confidence in their ability to maintain earnings coverage for dividends despite potential refinancing pressures [34][35] Question: Potential for improvement in joint venture financing - Management confirmed ongoing discussions with banking partners to optimize financing arrangements and mentioned successful refinancing efforts [36][37] Question: Opportunities in junior capital investments - Management indicated that junior capital remains a viable option when appropriate, emphasizing a cautious approach to risk [38][39]

Financial Performance - The company's net investment income (NII) per share was $0.45, resulting in an annualized NII yield on book value of 10.3%[15] - Net income per share was $0.29, equating to an annualized return on book value of 6.6%[15] - The net asset value per share as of September 30, 2025, was $17.40, a decrease compared to $17.56 as of June 30, 2025[15] Portfolio Composition and Activity - The total investment portfolio at fair value was $2,534.1 million, primarily consisting of senior secured, floating-rate loans[15] - Gross investment fundings were $340.1 million, while net investment fundings amounted to $44.0 million[15] - The portfolio is highly diversified across 195 portfolio companies operating in 31 different industries[15] - First lien investments constitute 64% of the invested portfolio at fair value[24] - Investments on non-accrual represented 1.5% of the total investment portfolio at amortized cost and 0.7% at fair value as of September 30, 2025[15,39] Liquidity and Funding - The company reported strong liquidity totaling $570 million, including $457 million of undrawn capacity on a revolving credit facility[15] - Unsecured debt represents 63% of the total debt outstanding at quarter-end[15,55] Portfolio Yield and Debt - The weighted average yield at amortized cost on the investment portfolio was 11.1%[15] - Ending net debt-to-equity was 1.23x, compared to 1.20x as of June 30, 2025[15]

Financial Results Announcement - Bain Capital Specialty Finance, Inc. will release its financial results for the quarter ended September 30, 2025, on November 10, 2025, after market close[4] - The press release regarding the financial results was issued on October 28, 2025[4] Conference Call - A conference call to discuss the financial results is scheduled for November 11, 2025, at 8:30 a.m. Eastern Time[4]

BOSTON--(BUSINESS WIRE)--Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the "Company†, "our†or "we†) today announced financial results for the third quarter ended September 30, 2025, and that its Board of Directors (the "Board†) has declared a dividend of $0.42 per share for the fourth quarter of 2025 and an additional dividend of $0.03 per share that was previously announced. "BCSF delivered another strong quarter of earnings driven by high net investment income that exceeded our regular d. ...

Investment Overview - The company has invested approximately $9,688.5 million in aggregate principal amount of debt and equity investments since operations began on October 13, 2016[311]. - The company primarily generates revenue through interest income from debt investments and distributions on equity investments[321]. - The company focuses on middle-market companies with annual EBITDA between $10.0 million and $150.0 million[313]. - The company may invest up to 30% of its portfolio in non-qualifying portfolio investments, such as non-U.S. companies[320]. - The company’s investment decision-making process includes sourcing, due diligence, credit committee approval, portfolio construction, and risk management[329]. Portfolio Performance - As of September 30, 2025, the total amortized cost of the investment portfolio was $2,524.7 million, with 98.5% classified as performing investments[344]. - The weighted average yield of the investment portfolio as of September 30, 2025, was 11.1%[341]. - The company had 195 portfolio companies as of September 30, 2025, with 92.8% of the debt bearing a floating rate[341]. - The investment performance rating of 2 (performing as expected) accounted for 95.0% of the fair value of the portfolio as of September 30, 2025[349]. - The fair value of total investments in ISLP as of September 30, 2025, was $717.8 million, an increase from $655.8 million as of December 31, 2024[352]. Financial Results - The total investment income was $67.2 million, a decrease from $72.5 million in the same period of 2024[356]. - Net investment income for the three months ended September 30, 2025, was $29.2 million, down from $34.0 million in 2024[356]. - Total investment income decreased to $205.0 million for the nine months ended September 30, 2025, down from $219.3 million in 2024, primarily due to a decrease in interest and dividend income[358]. - Interest income decreased to $159.0 million for the nine months ended September 30, 2025, from $166.1 million in 2024, attributed to a decrease in yield of the investment portfolio[358]. - Dividend income fell to $15.8 million for the nine months ended September 30, 2025, down from $22.7 million in 2024, mainly due to reduced income from SLP and ISLP[358]. Expenses and Costs - The company incurred expenses related to the Administrator of $0.6 million for the three months ended September 30, 2025[325]. - The total expenses for the three months ended September 30, 2025, were $37.2 million, slightly lower than $37.5 million in 2024[356]. - Total operating expenses for the nine months ended September 30, 2025, were $110.2 million, a decrease from $115.1 million in 2024[359]. - Interest and debt financing expenses increased to $61.0 million for the nine months ended September 30, 2025, compared to $53.8 million in 2024, primarily due to an increase in debt outstanding[361]. - Management fees (net of waivers) increased to $27.8 million for the nine months ended September 30, 2025, from $26.5 million in 2024, due to an increase in total assets[364]. Debt and Leverage - The company utilizes leverage to increase total capital available for investment, subject to regulatory limits[315]. - The total debt outstanding as of September 30, 2025, was $1.50 billion, compared to $1.40 billion as of December 31, 2024, reflecting an increase in leverage[391]. - The weighted average principal debt balance outstanding for the nine months ended September 30, 2025, was $1.5 billion, up from $1.3 billion in 2024[361]. - Total debt obligations amount to $1,498,615,000, with $300,000,000 due within one year and $748,000,000 due in more than five years[420]. - The combined weighted average interest rate on borrowings decreased to 4.8% for the nine months ended September 30, 2025, from 5.1% in 2024[362]. Cash and Liquidity - Cash, foreign cash, restricted cash, and cash equivalents decreased by $12.3 million for the nine months ended September 30, 2025, while the decrease for the same period in 2024 was $52.7 million, indicating improved cash management[384][385]. - The company had $86.8 million in cash and cash equivalents as of September 30, 2025, compared to $99.1 million as of December 31, 2024, indicating a decrease in liquidity[383]. - The company provided $2.4 million in cash for operating activities during the nine months ended September 30, 2025, compared to $7.1 million used in the same period in 2024, indicating improved operational efficiency[384][385]. Dividends and Distributions - Total distributions declared for the nine months ended September 30, 2025, amounted to $87,573,000, with a per share distribution of $1.35[392]. - Total distributions declared for the nine months ended September 30, 2024, amounted to $87,159,000, with a per share distribution of $1.35[393]. - The company intends to distribute dividends to stockholders at least equal to 90% of the sum of net ordinary income and net short-term capital gains, in compliance with RIC tax treatment[395]. - The company has adopted a dividend reinvestment plan allowing stockholders to reinvest cash dividends into additional shares of common stock[397]. Market Risks - The company is exposed to financial market risks, including changes in interest rates and foreign exchange rates, which may significantly affect the fair value of investments[421]. - A hypothetical decrease of 100 basis points in interest rates would result in a net decrease in investment income of $7,404,000[424]. - An increase of 300 basis points in interest rates would lead to a net increase in investment income of $22,656,000[424]. - The company may employ hedging techniques to minimize foreign exchange risks but cannot assure their effectiveness[424]. - The fair value of investments may differ significantly due to the inherent uncertainty of determining values without a readily available market[421].