|Over a month ago|
Bain Capital Specialty Finance downgraded to Neutral from Buy at BofA » 06:2706/2906/29/20
BofA analyst Derek Hewett…
BofA analyst Derek Hewett resumed coverage and downgraded Bain Capital Specialty Finance to Neutral from Buy with a $12 price target. The company's recently completed capital offerings improved liquidity and increased financial flexibility amid uncertain economic outlook but were also dilutive to its earnings and net asset value per share, the analyst tells investors in a research note. Hewett further cites Bain Capital's plans to cut its dividend by 17% starting in Q2 behind his rating change.
|Over a quarter ago|
Bain Capital Specialty Finance reports Q1 NII 44c, consensus 41c » 17:3505/0405/04/20
Net asset value per share…
Net asset value per share for the quarter ended March 31 was $17.29 as compared to $19.72 for the quarter ended December 31, 2019, representing a 12% decline quarter-over-quarter.
Janney Montgomery Scott downgrades four BDCs based on COVID-19 recession » 08:0204/0104/01/20
BCSF, MRCC, OFS, SCM
As previously reported,…
As previously reported, Janney Montgomery Scott analyst Mitchel Penn downgraded Bain Capital Specialty Finance (BCSF), Monroe Capital (MRCC), OFS Capital (OFS) and Stellus Capital (SCM), all to Neutral from Buy, as he lowered his equity fair value for all 30 BDCs, or Business Development Companies, he covers to account for credit, liquidity, and leverage pressures based on his view that the COVID-19 pandemic will likely cause a recession. Credit losses are likely to be higher than historic levels as "some good companies are likely to be impaired," but he doesn't think BDC bonds will likely be impaired as BDCs take actions to preserve capital such as suspending equity dividends or paying dividends in stock or rights offerings, Penn tells investors.
Bain Capital Specialty Finance downgraded to Neutral from Buy at Janney Montgomery Scott » 07:3104/0104/01/20
Janney Montgomery Scott…
Janney Montgomery Scott analyst Mitchel Penn downgraded Bain Capital Specialty Finance to Neutral from Buy with a $9 price target.
Bain Capital Specialty Finance issues letter to shareholders regarding COVID-19 » 08:4303/3003/30/20
Bain Capital Specialty…
Bain Capital Specialty Finance announced that it issued an open letter to its shareholders regarding a business update amid COVID-19 pandemic. The letter follows: "The emergence and rapid escalation of COVID-19 has deeply impacted all areas of our lives in ways we never thought possible. While every dislocation is different, our experience successfully navigating through a number of other periods of extreme volatility has shown us the importance of transparency and regular communication both internally and externally. As you turn your focus on the health and wellbeing of you and your loved ones during these uncertain times, Bain Capital remains dedicated to safeguarding your investment in BCSF. We want to provide an update on the steps we are taking to effectively manage the portfolio through this challenging time. We are fully operational, and the global reach and cross-platform dialogue among Bain Capital's business lines is a clear advantage for our Private Credit Group as we all navigate the current environment. We have been in constant dialogue with the management teams of our portfolio companies and the private equity sponsors who own them. These conversations are just a component of our proactive approach to portfolio management. We want to use this opportunity to share our observations, provide an update on portfolio composition, and highlight the steps we are taking, including raising both new equity and debt capital, to position the Company to weather this storm while preparing to pursue new potential investment opportunities... At this stage it is too early to know how effective the containment measures being put in place will prove to be in terms of stalling the spread of the virus and allowing a return to greater economic activity. As a result, we are preparing for the continuation of an uncertain environment in the near-term. Some of the additional measures we have taken include: Frequent communication with our portfolio company management teams and related private equity sponsors in order to understand contemporary and expected financial performance; Re-underwriting each of our 114 portfolio companies in order to understand how they can be expected to perform if economic activity remains suppressed for an extended period of time; and Building an internal watch list so we are poised to quickly engage with these companies and their private equity sponsors... As a further precaution, effective March 27, 2020, we entered into a backup revolver arrangement with our Advisor with a maximum credit limit of $50 million and an expiration date of March 27, 2023. We believe the increased capacity available under this facility will provide us with sufficient liquidity to navigate the current market conditions and dry powder as we consider new investment opportunities. The establishment of this facility is further evidence of the support and conviction our Advisor has in the Company's business objectives, and the broader benefits the Company derives from its relationship to the Bain Capital platform. We are also actively pursuing opportunities for BCSF to benefit from the recently enacted CARES Act that provides a $2 trillion stimulus package for individual taxpayers and U.S. small businesses...In addition to the above steps, following deliberations with our independent board members, we have filed an N-2 with the U.S. Securities and Exchange Commission today to seek to raise additional equity capital through a rights offering to existing investors. We believe raising additional equity now allows us to further strengthen our balance sheet and provide additional flexibility to support our existing portfolio companies over the coming months. We believe this ultimately will also enable us to be creative and forward-leaning at a time when many other middle market companies will be seeking additional financing and other liquidity providers may be retreating... While the COVID-19 pandemic is surely a fast evolving situation with multiple layers of complexity, we believe market conditions should ultimately favor long-term minded, value-oriented, fundamental investors. This has been at the core of Bain Capital Credit's approach since our founding in 1998. Rest assured the Company is well equipped to navigate the current environment as we remain focused on prudently managing the portfolio and our steady stewardship of your capital. We believe our investment, portfolio, and liability construction decisions have been well informed by the experience of the many investment and operating professionals at Bain Capital who have successfully navigated multiple market cycles and disruptions. As a business development company, we take our commitment to lending to middle market companies across the country and around the world seriously. Finally, we would like to thank all of you for your continued support as we navigate through this period together."
Bain Capital downgraded to Market Perform from Outperform at Keefe Bruyette » 04:4801/2701/27/20
Keefe Bruyette analyst…
Keefe Bruyette analyst Ryan Lynch downgraded Bain Capital Specialty Finance to Market Perform from Outperform with an unchanged price target of $19.50. The analyst cites primarily valuation for the downgrade. Further, while he still likes the management team and broader credit platform, he does not see a near-term catalyst to move the stock meaningfully higher given its "stagnant" earnings and dividend.
Global investment firms 'swoop' in to buy defaulted Chinese loans, WSJ says » 14:2601/2101/21/20
BX, OAK, BCSF
Global investment firms…
Global investment firms including Blackstone Group (BX), Lone Star Funds and Oaktree Capital (OAK) as well as Bain Capital (BCSF) have invested more than $3B in nonperforming Chinese commercial loans, reports the Wall Street Journal. "China's bad-debt problem is growing, and U.S. investors are trying to cash in," said Andrew Brown, a senior advising partner at ShoreVest Partners, according to the WSJ story. Reference Link
Bain Capital Specialty Finance downgraded on valuation at Wells Fargo » 06:3901/1501/15/20
Wells Fargo analyst…
Wells Fargo analyst Finian O'Shea downgraded Bain Capital Specialty Finance to Underweight from Equal Weight with a price target of $18.50, up from $18. In a research note to investors, O'Shea says that while he made the ratings change based on valuation, he continues to view Business Development Companies positively given a benign credit environment and meaningful spread to short end benchmark rates. He continues to view the industry's growth as a major positive as credit is being managed in much better hands, but sees some concern over investor base and fee structure that could hold back individual names.
Bain Capital downgraded to Underweight from Equal Weight at Wells Fargo » 04:5001/1501/15/20
Wells Fargo analyst…
Wells Fargo analyst Finian O'Shea downgraded Bain Capital Specialty Finance to Underweight from Equal Weight with an $18.50 price target.