Financial Data and Key Metrics Changes - For the quarter ended December 31, Core Net Investment Income was $0.27 per share, consistent with GAAP net investment income [5][14] - NAV decreased by 3.1% from $10.83 per share to $10.49 per share [14] - Debt-to-equity ratio was 1.57 times, reduced to 1.5 times after asset sales post-quarter end [15] Business Line Data and Key Metrics Changes - The new joint venture, PSSL Two, invested $197 million during the quarter, with a total portfolio of $326 million [5][6] - The portfolio remains well-diversified, comprising 160 companies across 50 industries, with a weighted average yield on debt investments of 9.9% [15][16] - PIK interest represented only 2.5% of total interest income, indicating a conservative portfolio structure [8][16] Market Data and Key Metrics Changes - An increase in M&A transaction activity in the private Middle Market is noted, expanding the pipeline of new investment opportunities [6][7] - Pricing on high-quality first lien term loans remains attractive, typically ranging from SOFR plus 475-525 basis points [7] Company Strategy and Development Direction - The company aims to scale PSSL Two to over $1 billion in assets, consistent with existing joint ventures [6] - The focus remains on core Middle Market companies, providing strategic capital with strong underwriting and covenant protections [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in covering dividends through projected run rate NII from the new joint venture, contingent on M&A activity [24][25] - The current environment is seen as favorable for lenders with strong private equity sponsor relationships [7] Other Important Information - The company has invested $8.7 billion in 545 companies, with a loss ratio on invested capital of only 13 basis points annually [12] - The company continues to originate attractive investment opportunities, investing $301 million at a weighted average yield of 10% during the quarter [12][13] Q&A Session Summary Question: Why is software such a low exposure within the portfolio? - Management indicated that the low exposure is a strategic decision to focus on cash flow loans with reasonable multiples and strong covenants, avoiding high-leverage software loans [19][21] Question: Does the expectation to cover the dividend assume full optimization of the new JV? - Management confirmed that the expectation is based on ramping the JV to about $1 billion, with M&A activity expected to populate the JV and facilitate equity rotation [22][24] Question: What are the drivers of the unrealized marks in the quarter? - Management noted that markdowns were primarily related to the 2021 vintage, with some specific companies experiencing softness, but overall, they do not foresee significant additional markdowns [41][44] Question: What is the mix of loans by vintage year in the portfolio? - Management did not have the exact data on hand but suggested that it would be useful for further analysis [45] Question: Is the $3.6 million charge related to the credit amendment a recurring item? - Management clarified that the charge was about $500,000 and is a one-time item [48]

Group 1 - The article discusses the BlackRock Floating Rate Income Trust (NYSE: BGT) and its performance in relation to the Federal Reserve's interest rate cuts [1] - The previous coverage of the trust indicated a downgrade to 'Hold' status prior to the first Fed rate cut in 2024, suggesting a cautious outlook [1] - The focus of Binary Tree Analytics (BTA) is on providing transparency and analytics for capital markets instruments, particularly in closed-end funds (CEFs), exchange-traded funds (ETFs), and special situations [1]

Financial Performance - The company's net investment income (NII) per share was $0.47, resulting in an annualized NII yield on book value of 10.7%[15] - Net income per share was $0.37, equating to an annualized return on book value of 8.3%[15] - The net asset value (NAV) per share decreased slightly to $17.56 as of June 30, 2025, compared to $17.64 as of March 31, 2025[15] - The Board of Directors declared a dividend of $0.42 per share for the third quarter of 2025, along with an additional dividend of $0.03 per share[15] Portfolio Composition and Activity - The total investment portfolio at fair value reached $2,501.8 million, primarily consisting of senior secured, floating-rate loans[15] - Gross investment fundings amounted to $529.6 million, while net investment fundings were $27.3 million[15] - The investment portfolio is diversified across 185 portfolio companies operating in 29 different industries[15] - The weighted average yield at amortized cost on the investment portfolio was 11.4%[15] - Investments on non-accrual represented 1.7% of the total investment portfolio at amortized cost and 0.6% at fair value[15] Liquidity and Funding - The company reported strong liquidity totaling $796 million, including $592 million of undrawn capacity on a revolving credit facility[15] - Unsecured debt represents 61% of the total debt outstanding at quarter-end[15]

Bain Capital Specialty Finance, Inc. PLEASE CONSIDER THE FOLLOWING In this material Bain Capital Credit, LP, Bain Capital Credit (Australia), Pty. Ltd., Bain Capital Credit, Ltd., Bain Capital Investments (Europe) Limited, Bain Capital Investments (Ireland) Limited, Bain Capital Credit CLO Advisors, LP, Bain Capital Credit U.S. CLO Manager, LLC, Bain Capital Credit U.S. CLO Manager II, LP, Bain Capital Credit (Asia) Limited, Bain Capital (Singapore) PTE. LTD, Bain Capital Private Equity Japan LLC, BCPC Advi ...