KBRA Assigns Rating to Bain Capital Private Credit's $350 Million Senior Unsecured Notes due 2031
2 Oct 2026 | New York
KBRA assigns a rating of BBB to Bain Capital Private Credit's ("BCPC" or "the company") $350 million, 7.60% senior unsecured notes due 2031. The rating Outlook is Stable. The proceeds will be used for general corporate purposes and to repay secured debt.
Key Credit Considerations
The rating and Stable Outlook are supported by BCPC’s ties to the $68 billion Bain Capital Credit ("BCC") credit platform, including $21 billion dedicated to private credit, along with SEC exemptive relief to co-invest in other funds managed by its adviser, BCPC Advisors, LP ("Adviser"), and its affiliates as of March 31, 2026. BCC's solid management team has a long track record working within the private credit markets dating back to the mid-1990s, with BCC’s platform providing a 28-year history of strong credit performance through economic cycles. Also supporting the rating is BCPC’s well-diversified $2.2 billion investment portfolio comprised largely of senior secured first lien loans (84.8%) to 182 portfolio companies across 27 sectors (excluding investment vehicles), mostly in the core middle market with median EBITDA of $42 million as of June 30, 2026. The top three portfolio sectors are High Tech Industries (14.4%), Healthcare & Pharmaceuticals (9.3%), and Business Services (9.1%). As of June 30, 2026, the company had no portfolio companies on non-accrual status.
The company's funding mix is well diversified with senior unsecured notes and three secured bank facilities, including a revolving credit facility and two secured SPV asset facilities. Liquidity is solid with $354 million in available credit lines and $89.2 million in unrestricted cash (including foreign cash) set against $631.3 million of unfunded commitments, 61% of which relates to delayed-draw term loans that are funded only as borrowers satisfy applicable draw conditions, and no near-term senior unsecured debt maturities. This issuance will further improve financial flexibility and lower asset encumbrance for the benefit of unsecured noteholders. As of June 30, 2026, the company's senior unsecured debt to total outstanding debt was ~22%, and will increase with the issuance. As a perpetual-life BDC, the company raises capital monthly and offers share tenders quarterly. Since inception on December 21, 2021, through June 30, 2026, the company raised ~$1.2 billion of equity, including reinvestment of distributions, with just $27.9 million in redemptions. As of June 30, 2026, the company had ~3% of its portfolio in more liquid BSLs to further support liquidity.
As of June 30, 2026, the company’s gross and net leverage were 1.10x and 1.02x, respectively, which is within the company's target net leverage range of 0.75x-1.25x. Asset coverage is solid at 191% when considering its 150% regulatory asset coverage, providing the company a solid cushion and the ability to withstand additional market volatility in a less favorable economic environment.
Counterbalancing the strengths are the potential risks related to BCPC’s illiquid assets, a less seasoned investment portfolio due to its short operating history, and relatively high investment portfolio growth, retained earnings constraints as a regulated investment company (RIC), and the uncertain economic environment with high base rates, inflation, and geopolitical risks.
BCPC is an externally managed, non-diversified investment management company that elected to be treated as a Business Development Company (BDC) under the 1940 Act and as a RIC, which, among other things, must distribute to its shareholders at least 90% of the company’s investment taxable income. The company was formed as a Delaware statutory trust in December 2021 and commenced operations November 28, 2023. The company is managed by BCPC Advisors, LP, a subsidiary of Bain Capital Credit, which is a wholly owned subsidiary of Bain Capital, LP that was founded in 1984 and had approximately $225 billion in AUM as of March 31, 2026.
Rating Sensitivities
Given the Stable Outlook, a rating upgrade is not expected in the medium term. Rating pressure is possible if a prolonged downturn in the U.S. economy has a material impact on earnings performance, including increased non-accrual investments and a significant rise in leverage. An increased focus on riskier investments or a change in the current management structure and/or a change in strategy and risk management that negatively impact credit metrics could also pressure ratings.
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