Bain Capital Specialty Finance
17 named things its latest annual report says its results depend on, each in the company's own words. 10 of them are also named by other companies we've read.
Suppliers
Sumitomo Mitsui Banking Corporation
depends on · $855,000,000On December 24, 2021, the Company entered into a senior secured revolving credit agreement (the “Sumitomo Credit Agreement” or the “Sumitomo Credit Facility”) as Borrower, with Sumitomo Mitsui Banking Corporation, as Administrative Agent and Sole Book Runner, and with Sumitomo Mitsui Banking Corporation and MUFG Union Bank, N.A., as Joint Lead Arrangers.Business (Item 1)
Partners and platforms
BCSF Advisors, LP (the Advisor)
depends on · 1.5% of our gross assetsnamed as a riskThe Base Management Fee is calculated at an annual rate of 1.5% of our gross assets, including assets purchased with borrowed funds or other forms of leverage but excluding cash and cash equivalents.Business (Item 1)
International Senior Loan Program, LLC (ISLP) and Bain Capital Senior Loan Program, LLC (SLP)
13.9named as a riskRepresents debt and equity in the International Senior Loan Program, LLC (“ISLP”) and Bain Capital Senior Loan Program, LLC (“SLP”) joint ventures.Business (Item 1)
Bain Capital Credit, LP
depends onnamed as a riskThe Resource Sharing Agreement may be terminated by either party on 60 days’ notice, which if terminated may have a material adverse consequence on the Company’s operations.Business (Item 1)
Bain Capital information systems
depends onnamed as a riskOur business is highly dependent on the communications and information systems of Bain Capital Credit.Risk factors (Item 1A)
Other companies
BCC Middle Market CLO 2019-1
depends on · $430.3 millionnamed as a riskOn July 2, 2025, the Co-Issuers refinanced the 2019‑1 CLO Reset Notes through a $430.3 million term debt securitization in the form of a collateralized loan obligation (the “CLO Reset Transaction”).Business (Item 1)
March 2030 Notes interest rate swap
exposed to its price · $350 millionUnder the interest rate swap agreement related to the March 2030 Notes, the Company receives a fixed interest rate of 5.95% per annum and pays a floating interest rate of SOFR + 1.90% per annum on $350 million of the March 2030 Notes.Business (Item 1)
Software industry
concentrated innamed as a riskCompanies in the software industry are subject to significant competitive pressures, such as aggressive pricing, newmarket entrants, competition for market share, short product cycles due to an accelerated rate of technological developments and thepotential for limited earnings and/or falling profit margins.Risk factors (Item 1A)
Places
Europe
operates inWe seek to provide risk adjusted returns and current income to investors by investing primarily in middle-market direct lending opportunities across North America, Europe and Australia and also in other geographic markets.Business (Item 1)
Also named by ADSK, AME, AMRC, ATR, BKNG, BMI, BMY, CARR and 60 more
Commodities and inputs
Secured Overnight Financing Rate (SOFR)
exposed to its price · $(17,469)named as a riskOur net investment income is affected by fluctuations in various interest rates, including EURIBOR, BBSY, CORRA, SOFR, SONIA, NIBOR and BKBM.Risk factors (Item 1A)
Also named by ABR, ADBE, AGM, AMG, ARCC, BRO, CAT, CGBD and 21 more
Regulators
U.S. Securities and Exchange Commission (SEC)
subject tonamed as a riskTo the extent the SEC raises concerns or has negative findings concerning the manner in which we or our Advisor operate, it could adversely affect our business.Risk factors (Item 1A)
Also named by AB, ADSK, AMG, AMP, ARCC, ARES, BAM, BEN and 44 more
Laws and programs
Investment Company Act of 1940
subject to · at least 150%named as a riskEffective February 2, 2019, the Company is permitted to borrow amounts such that its asset coverage ratio is at least 150% after such borrowing (if certain requirements are met), rather than 200%, as previously required.Business (Item 1)
Also named by ABR, AMG, AMP, ARCC, ARES, BAM, BEN, BX and 28 more
Regulated investment company (RIC) status under Subchapter M of the Internal Revenue Code
subject to · at least equal to 90%named as a riskIf we fail to qualify to be eligible for taxation as a RIC for any reason and become subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distributions to our stockholders and the amount of funds available for new investments.Risk factors (Item 1A)
Also named by HTGC
Small Business Credit Availability Act
subject to · from 200% to 150%The SBCAA, among other things, amended the 1940 Act to reduce the asset coverage requirements applicable to business development companies from 200% to 150% so long as the business development company meets certain disclosure requirements and obtains certain approvals.Business (Item 1)
U.S. tariffs
subject tonamed as a riskAny of these factors coulddepress economic activity and restrict our portfolio companies’ access to suppliers or customers and have a material adverse effect on theirbusiness, financial condition and results of operations, which in turn would negatively impact our business.Risk factors (Item 1A)
Also named by A, AAPL, ACHR, ADI, AEHR, AEP, AIOT, AKAM and 170 more
EU risk retention regulations
subject tonamed as a riskIf the 2019-1 Issuer has not received confirmation from S&P Global Ratings of its initial ratings of each class of the 2019-1 Notes, or if we fail to hold the required amount of Membership Interests as required by EU risk retention regulations (“Retention Deficiency”), proceeds will be diverted to pay principal on the 2019-1 Notes or to purchase additional collateral obligations (or, in the case of a Retention Deficiency, to the extent necessary to reduce such Retention Deficiency to zero).Risk factors (Item 1A)