BCSF - Bain Capital Specialty Finance: Initiating Coverage Of This 11%-Yielding BDC

2024-06-26 10:13:51 ET

Summary

• We initiate coverage of business development company Bain Capital Specialty Finance, Inc., trading at an 11% dividend yield and a 7% discount to book.
• Bain Capital Specialty Finance is overweight in Aerospace/Defense and High-Tech sectors, with over 80% in first-lien assets.
• Bain Capital is focused on the core middle-market segment with a median EBITDA of $44m, part of Bain Capital Credit managing $12bn in assets.
• Bain Capital's performance blip in Q2 2020 due to rights offering impacted NAV, requiring adjustments for a fair judgment against the sector.
• Bain Capital has consistently traded at a lower valuation than the BDC sector. We would look to add on further weakness.

In this article, we take a look at the BDC Bain Capital Specialty Finance, Inc. ( BCSF ). We recently added the stock to our coverage and the service BDC Tool....

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