Latest news with #BaringsBDC
San Francisco Chronicle
5 days ago
- Business
- San Francisco Chronicle
Barings BDC: Q2 Earnings Snapshot
CHARLOTTE, N.C. (AP) — CHARLOTTE, N.C. (AP) — Barings BDC, Inc. (BBDC) on Thursday reported second-quarter net income of $20.6 million. The Charlotte, North Carolina-based company said it had profit of 20 cents per share. Earnings, adjusted for investment costs, were 28 cents per share. The business development company posted revenue of $74.4 million in the period. Barings BDC shares have dropped 4% since the beginning of the year. In the final minutes of trading on Thursday, shares hit $9.19, a decrease of roughly 3% in the last 12 months. _____
Yahoo
5 days ago
- Business
- Yahoo
Barings BDC, Inc. Reports Second Quarter 2025 Results and Announces Quarterly Cash Dividend of $0.26 Per Share
CHARLOTTE, N.C., August 07, 2025--(BUSINESS WIRE)--Barings BDC, Inc. (NYSE: BBDC) ("Barings BDC" or the "Company") today reported its financial and operating results for the second quarter of 2025 and announced that the Company's Board of Directors (the "Board") declared a quarterly cash dividend of $0.26 per share. Highlights Three Months Ended Three Months Ended Income Statement June 30, 2025 March 31, 2025 (dollars in millions, except per share data) Total Amount Per Share(1) Total Amount Per Share(2) Net investment income $29.8 $0.28 $26.4 $0.25 Net realized gains (losses) $(15.2) $(0.14) $(1.1) $(0.01) Net unrealized appreciation (depreciation) $5.9 $0.06 $7.3 $0.07 Net increase in net assets resulting from operations $20.6 $0.20 $32.6 $0.31 Regular dividends paid $0.26 $0.26 Special dividends paid $0.05 $0.05 (1) Based on weighted average shares outstanding during the period of 105,232,015. (2) Based on weighted average shares outstanding during the period of 105,373,382. Investment Portfolio and Balance Sheet (dollars in millions, except per share data) As of June 30, 2025 As of March 31, 2025 As of December 31, 2024 Investment portfolio at fair value $2,623.9 $2,571.2 $2,449.3 Weighted average yield on performing debt investments (at principal amount) 9.8% 9.9% 10.2% Total assets $2,793.3 $2,791.3 $2,695.7 Debt outstanding (principal) $1,572.3 $1,522.3 $1,463.6 Total net assets (equity) $1,175.8 $1,188.8 $1,190.4 Net asset value per share $11.18 $11.29 $11.29 Debt-to-equity ratio 1.34x 1.28x 1.23x Net debt-to-equity ratio (adjusted for unrestricted cash and net unsettled transactions) 1.29x 1.24x 1.16x Second Quarter 2025 Results Commenting on the quarter, Eric Lloyd, Chief Executive Officer of Barings BDC, stated, "Our portfolio generated strong performance in the second quarter, delivering sequential net investment income growth. Our net investment income was $0.28 per share, fully covering our regular dividend. Further, our net investment income per share performance for the first half of 2025 fully covers our regular distributions year-to-date. Our disciplined investment approach continues to drive superior credit performance, with non-accruals at just 0.5% of our portfolio on a fair value basis. Also, we deployed almost $200 million into new and existing investments during the second quarter of 2025, in line with our strategy to deploy capital into high-quality, income producing opportunities that align with our selective investment strategy. With over $322 million of dry powder and the strength of the Barings platform, we believe that we remain well positioned to generate attractive risk-adjusted returns for our shareholders." During the three months ended June 30, 2025, the Company reported total investment income of $74.4 million, net investment income of $29.8 million, or $0.28 per share, and a net increase in net assets resulting from operations of $20.6 million, or $0.20 per share. Net asset value ("NAV") per share as of June 30, 2025 was $11.18, as compared to $11.29 as of March 31, 2025. The decrease in NAV per share from March 31, 2025 to June 30, 2025 was primarily attributed to a net realized loss on investments, credit support agreements, foreign currency transactions and forward currency contracts of $0.14 per share, and the Company's payment of a second quarter special dividend of $0.05 per share, partially offset by net unrealized appreciation on the Company's investment portfolio, credit support agreements, foreign currency transactions and forward currency contracts of approximately $0.06 per share, and the Company's second quarter net investment income exceeding the second quarter regular dividend paid by $0.02 per share. Recent Portfolio Activity During the three months ended June 30, 2025, the Company made 19 new investments totaling $137.3 million and made investments in existing portfolio companies totaling $61.7 million. The Company had 14 loans repaid totaling $59.1 million and recognized a net realized loss on these transactions of $17.6 million. The Company also received $35.5 million of portfolio company principal payments and sales proceeds and recognized a net realized gain on these transactions of $0.3 million. The Company received $4.0 million of return of capital from joint ventures, equity, and royalty rights investments. The Company also received proceeds of $4.7 million related to the exit of one of its royalty rights investments and recognized a realized gain on such exit of $2.5 million. In addition, the Company sold $55.9 million of middle-market portfolio debt investments to its joint ventures, recognizing a net realized gain on these transactions of $0.7 million. Also, investments in two portfolio companies were restructured, which resulted in a net realized loss of $2.3 million. Lastly, the Company received proceeds related to the sales and exits of equity investments totaling $8.1 million and recognized a net realized gain on such sales totaling $5.4 million. During the three months ended June 30, 2025, the Company recorded net unrealized appreciation totaling $5.9 million, consisting of net unrealized appreciation on the Company's current portfolio of $14.7 million, net unrealized appreciation reclassification adjustments of $12.8 million related to the net realized losses on the sales / exits of certain investments, unrealized appreciation of $6.4 million on the Sierra credit support agreement with Barings LLC ("Barings"), partially offset by net unrealized depreciation related to foreign currency transactions of $15.2 million, unrealized depreciation of $9.4 million related to the net realized gain on the termination of the MVC credit support agreement with Barings and net unrealized depreciation related to forward currency contracts of $3.3 million. The net unrealized appreciation on the Company's current portfolio of $14.7 million was driven primarily by the impact of foreign currency exchange rates on investments of $34.2 million, partially offset by the credit or fundamental performance of investments of $13.0 million and broad market moves for investments of $6.5 million. Liquidity and Capitalization As of June 30, 2025, the Company had cash and foreign currencies of $49.3 million (including restricted cash of $4.7 million), $547.3 million of borrowings outstanding under its $825.0 million senior secured credit agreement, $1,025.0 million aggregate principal amount of unsecured notes outstanding and a net receivable from unsettled transactions of $11.3 million. Share Repurchase Program On February 20, 2025, the Board authorized a new 12-month share repurchase program. Under the program, the Company may repurchase, during the 12-month period commencing on March 1, 2025, up to $30.0 million in the aggregate of its outstanding common stock in the open market at prices below the then-current NAV per share. The timing, manner, price and amount of any share repurchases will be determined by the Company, in its discretion, based upon the evaluation of economic and market conditions, the Company's stock price, applicable legal, contractual and regulatory requirements and other factors. The program is expected to be in effect until March 1, 2026, unless extended or until the aggregate repurchase amount that has been approved by the Board has been expended. The program does not require the Company to repurchase any specific number of shares, and the Company cannot assure stockholders that any shares will be repurchased under the program. The program may be suspended, extended, modified or discontinued at any time. During the three months ended June 30, 2025, the Company repurchased a total of 100,000 shares of its common stock in the open market under the authorized program at an average price of $8.88 per share, including brokerage commissions. As of August 7, 2025, the Company has repurchased a total of 250,000 shares of its common stock in the open market under the authorized program at an average price of $9.35 per share, including brokerage commissions. Dividend Information The Board declared a quarterly cash dividend of $0.26 per share, which, together with the previously declared special dividend payable during the third quarter of 2025 in the amount of $0.05 per share, is payable as follows: Third Quarter 2025 Dividend: Amount per share: $0.31 Record date: September 3, 2025 Payment date: September 10, 2025 Dividend Reinvestment Plan Barings BDC has adopted a dividend reinvestment plan ("DRIP") that provides for reinvestment of dividends and distributions on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when the Company declares a cash dividend or distribution, stockholders who have not opted out of the DRIP will have their cash dividends or distributions automatically reinvested in additional shares of the Company's common stock, rather than receiving cash. When the Company declares and pays dividends and distributions, it determines the allocation of the distribution between current income, accumulated income, capital gains and return of capital on the basis of accounting principles generally accepted in the United States ("GAAP"). At each year end, the Company is required for tax purposes to determine the allocation based on tax accounting principles. Due to differences between GAAP and tax accounting principles, the portion of each dividend distribution that is ordinary income, capital gain or return of capital may differ for GAAP and tax purposes. The tax status of the Company's distributions can be found on the Investor Relations page of its website. Subsequent Events Subsequent to June 30, 2025, the Company made approximately $59.3 million of new commitments, of which $38.6 million closed and funded. The $38.6 million of investments consists of $28.9 million of first lien senior secured debt investments, $9.4 million of subordinated debt investments and $0.3 million of equity investments. The weighted average yield of the debt investments was 9.4%. In addition, the Company funded $22.6 million of previously committed revolvers and delayed draw term loans. On August 4, 2025, the Company's 4.66% Series A senior unsecured notes due August 2025 matured in accordance with the terms of the Note Purchase Agreement with Massachusetts Mutual Life Insurance Company and the Company repaid in full the par amount plus accrued and unpaid interest. Conference Call to Discuss Second Quarter 2025 Results Barings BDC has scheduled a conference call to discuss second quarter 2025 financial and operating results for Friday, August 8, 2025, at 9:00 a.m. ET. To listen to the call, please dial 877-407-8831 or 201-493-6736 approximately 10 minutes prior to the start of the call. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available until August 15, 2025. To access the replay, please dial 877-660-6853 or 201-612-7415 and enter conference ID 13750211. This conference call will also be available via a live webcast on the investor relations section of Barings BDC's website at Access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the Company's website until August 15, 2025. Forward-Looking Statements Statements included herein or on the webcast/conference call may constitute "forward-looking statements," which relate to future events or Barings BDC's future performance or financial condition. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management's current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. Forward-looking statements include, but are not limited to, the Company's projected net investment income and earnings, the Company's distribution levels and frequency of distributions, the Company's share repurchase activity and investment activity, and the ability of Barings to manage Barings BDC and identify investment opportunities, all of which are subject to change at any time based upon economic, market or other conditions, and may not be relied upon as investment advice or an indication of Barings BDC's trading intent. More information on the risks and other potential factors that could affect Barings BDC's financial results and future events, including important factors that could cause actual results or events to differ materially from plans, estimates or expectations included herein or discussed on the webcast/conference call, is included in Barings BDC's filings with the Securities and Exchange Commission, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Barings BDC's most recently filed annual report on Form 10-K, as well as in subsequent filings, including Barings BDC's quarterly reports on Form 10-Q. In addition, there is no assurance that Barings BDC or any of its affiliates will purchase additional shares of Barings BDC at any specific discount levels or in any specific amounts. There is no assurance that the market price of Barings BDC's shares, either absolutely or relative to NAV, will increase as a result of any share repurchases, or that any repurchase plan will enhance stockholder value over the long term. Non-GAAP Financial Measures To provide additional information about the Company's results, the Company's management has discussed in this press release the Company's net debt (calculated as (i) total debt less (ii) unrestricted cash and foreign currencies (excluding restricted cash) net of net payables/receivables from unsettled transactions) and its net debt-to-equity ratio (calculated as net debt divided by total net assets), which are not prepared in accordance with GAAP. These non-GAAP measures are included to supplement the Company's financial information presented in accordance with GAAP and because the Company uses such measures to monitor and evaluate its leverage and financial condition and believes the presentation of these measures enhances investors' ability to analyze trends in the Company's business and to evaluate the Company's leverage and ability to take on additional debt. However, these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for analysis of the Company's financial results as reported under GAAP. These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company's results of operations in conjunction with their corresponding GAAP measures. Pursuant to the requirements of Item 10(e) of Regulation S-K, as promulgated under the Securities Exchange Act of 1934, as amended, the Company has provided a reconciliation of these non-GAAP measures in the last table included in this press release. About Barings BDC Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Barings BDC seeks to invest primarily in senior secured loans in middle-market companies that operate across a wide range of industries. Barings BDC's investment activities are managed by its investment adviser, Barings, a leading global asset manager based in Charlotte, NC with $456+ billion* of AUM firm-wide. For more information, visit About Barings LLC Barings is a $456+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at *Assets under management as of June 30, 2025 Barings BDC, Inc. Consolidated Balance Sheets (in thousands, except share and per share data) June 30, 2025 December 31, 2024 (Unaudited) Assets: Investments at fair value: Non-Control / Non-Affiliate investments (cost of $2,156,305 and $2,033,716 as of June 30, 2025 and December 31, 2024, respectively) $ 2,128,553 $ 1,972,373 Affiliate investments (cost of $397,878 and $382,848 as of June 30, 2025 and December 31, 2024, respectively) 409,706 397,236 Control investments (cost of $81,647 and $106,132 as of June 30, 2025 and December 31, 2024, respectively) 85,623 79,663 Total investments at fair value 2,623,882 2,449,272 Cash (restricted cash of $4,714 and $13,493 as of June 30, 2025 and December 31, 2024, respectively) 39,963 74,381 Foreign currencies (cost of $9,294 and $17,343 as of June 30, 2025 and December 31, 2024, respectively) 9,298 16,958 Interest and fees receivable 41,811 39,914 Prepaid expenses and other assets 463 1,745 Credit support agreements (cost of $44,400 and $58,000 as of June 30, 2025 and December 31, 2024, respectively) 51,200 63,450 Derivative assets 3,361 24,816 Deferred financing fees 7,807 8,697 Receivable from unsettled transactions 15,522 16,427 Total assets $ 2,793,307 $ 2,695,660 Liabilities: Accounts payable and accrued liabilities $ 3,943 $ 5,567 Interest payable 15,430 16,245 Administrative fees payable 356 540 Base management fees payable 8,193 7,888 Incentive management fees payable 11,117 7,871 Derivative liabilities 5,863 9,394 Payable from unsettled transactions 4,189 7,380 Borrowings under credit facility 547,313 438,590 Notes payable (net of deferred financing fees) 1,021,059 1,011,831 Total liabilities 1,617,463 1,505,306 Commitments and contingencies Net Assets: Common stock, $0.001 par value per share (150,000,000 shares authorized, 105,158,938 and 105,408,938 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively) 105 105 Additional paid-in capital 1,844,638 1,846,977 Total distributable earnings (loss) (668,899 ) (656,728 ) Total net assets 1,175,844 1,190,354 Total liabilities and net assets $ 2,793,307 $ 2,695,660 Net asset value per share $ 11.18 $ 11.29 Barings BDC, Inc. Unaudited Consolidated Statements of Operations (in thousands, except share and per share data) Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Investment income: Interest income: Non-Control / Non-Affiliate investments $ 48,899 $ 54,084 $ 93,526 $ 107,273 Affiliate investments 1,181 792 2,054 1,749 Control investments 137 51 257 437 Total interest income 50,217 54,927 95,837 109,459 Dividend income: Non-Control / Non-Affiliate investments 1,668 1,324 2,811 2,645 Affiliate investments 10,108 10,410 19,707 17,565 Control investments 2,817 — 2,817 — Total dividend income 14,593 11,734 25,335 20,210 Fee and other income: Non-Control / Non-Affiliate investments 4,807 3,552 8,346 6,939 Affiliate investments 72 200 104 269 Control investments 1 17 4 34 Total fee and other income 4,880 3,769 8,454 7,242 Payment-in-kind interest income: Non-Control / Non-Affiliate investments 4,007 3,246 7,755 5,728 Affiliate investments 266 268 609 519 Control investments 235 684 463 1,076 Total payment-in-kind interest income 4,508 4,198 8,827 7,323 Interest income from cash 200 258 384 458 Total investment income 74,398 74,886 138,837 144,692 Operating expenses: Interest and other financing fees 22,176 20,774 42,373 41,856 Base management fee 8,193 8,190 16,211 16,469 Incentive management fees 11,117 1,122 18,855 9,289 General and administrative expenses 2,294 2,343 3,989 5,019 Total operating expenses 43,780 32,429 81,428 72,633 Net investment income before taxes 30,618 42,457 57,409 72,059 Income taxes, including excise tax expense 808 315 1,208 565 Net investment income after taxes $ 29,810 $ 42,142 $ 56,201 $ 71,494 Barings BDC, Inc. Unaudited Consolidated Statements of Operations — (Continued) (in thousands, except share and per share data) Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreements, foreign currency transactions and forward currency contracts: Net realized gains (losses): Non-Control / Non-Affiliate investments $ 6,024 $ 7,685 $ (4,360 ) $ (4,922 ) Affiliate investments — (4,179 ) — (4,179 ) Control investments (17,109 ) — (24,456 ) — Net realized gains (losses) on investments (11,085 ) 3,506 (28,816 ) (9,101 ) Credit support agreements 9,400 — 9,400 — Foreign currency transactions 787 153 2,235 393 Forward currency contracts (14,259 ) 4,415 954 (4,671 ) Net realized gains (losses) (15,157 ) 8,074 (16,227 ) (13,379 ) Net unrealized appreciation (depreciation): Non-Control / Non-Affiliate investments 8,975 (7,831 ) 31,205 672 Affiliate investments 663 (5,034 ) (1,197 ) (2,239 ) Control investments 17,817 (13,572 ) 30,447 (1,766 ) Net unrealized appreciation (depreciation) on investments 27,455 (26,437 ) 60,455 (3,333 ) Credit support agreements (3,000 ) (904 ) 1,350 (7,254 ) Foreign currency transactions (15,205 ) 1,025 (22,983 ) 4,541 Forward currency contracts (3,344 ) (4,460 ) (25,661 ) 11,372 Net unrealized appreciation (depreciation) 5,906 (30,776 ) 13,161 5,326 Net realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreements, foreign currency transactions and forward currency contracts (9,251 ) (22,702 ) (3,066 ) (8,053 ) Net increase (decrease) in net assets resulting from operations $ 20,559 $ 19,440 $ 53,135 $ 63,441 Net investment income per share — basic and diluted $ 0.28 $ 0.40 $ 0.53 $ 0.67 Net increase (decrease) in net assets resulting from operations per share — basic and diluted $ 0.20 $ 0.18 $ 0.51 $ 0.60 Dividends / distributions per share: Regular quarterly dividends / distributions $ 0.26 $ 0.26 $ 0.52 $ 0.52 Special dividends / distributions 0.05 — 0.10 — Total dividends / distributions per share $ 0.31 $ 0.26 $ 0.62 $ 0.52 Weighted average shares outstanding — basic and diluted 105,232,015 105,898,271 105,302,308 105,968,572 Barings BDC, Inc. Unaudited Consolidated Statements of Cash Flows (in thousands) Six Months Ended Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities: Net increase (decrease) in net assets resulting from operations $ 53,135 $ 63,441 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: Purchases of portfolio investments (409,178 ) (216,878 ) Repayments received / sales of portfolio investments 274,620 289,310 Loan origination and other fees received 8,243 3,768 Net realized (gain) loss on investments 28,816 9,101 Net realized (gain) loss of CSAs (9,400 ) — Net realized (gain) loss on foreign currency transactions (2,235 ) (393 ) Net realized (gain) loss on forward currency contracts (954 ) 4,671 Net unrealized (appreciation) depreciation on investments (60,455 ) 3,333 Net unrealized (appreciation) depreciation of CSAs (1,350 ) 7,254 Net unrealized (appreciation) depreciation on foreign currency transactions 22,983 (4,541 ) Net unrealized (appreciation) depreciation on forward currency contracts 25,661 (11,372 ) Payment-in-kind interest / dividends (11,058 ) (10,331 ) Amortization of deferred financing fees 2,380 2,251 Accretion of loan origination and other fees (5,213 ) (5,473 ) Amortization / accretion of purchased loan premium / discount (895 ) (412 ) Proceeds from termination of CSAs 23,000 — Payments for derivative contracts (21,584 ) (11,586 ) Proceeds from derivative contracts 22,538 6,914 Changes in operating assets and liabilities: Interest and fees receivable (691 ) 14,625 Prepaid expenses and other assets 1,282 628 Accounts payable and accrued liabilities 723 (6,984 ) Interest payable (830 ) 5,877 Net cash provided by (used in) operating activities (60,462 ) 143,203 Cash flows from financing activities: Borrowings under credit facility 170,500 24,500 Repayments of credit facility (84,471 ) (388,539 ) Proceeds from notes — 300,000 Financing fees paid — (7,205 ) Purchases of shares in repurchase plan (2,339 ) (3,015 ) Cash dividends / distributions paid (65,306 ) (55,109 ) Net cash provided by (used in) financing activities 18,384 (129,368 ) Net increase (decrease) in cash and foreign currencies (42,078 ) 13,835 Cash and foreign currencies, beginning of period 91,339 70,528 Cash and foreign currencies, end of period $ 49,261 $ 84,363 Supplemental Information: Cash paid for interest $ 38,453 $ 32,855 Excise taxes paid during the period $ 3,665 $ 1,700 Barings BDC, Inc. Unaudited Reconciliation of Debt to Net Debt and Calculation of Net Debt-to-Equity Ratio (in thousands, except ratios) June 30, 2025 March 31, 2025 December 31, 2024 Total debt (principal) $ 1,572,313 $ 1,522,268 $ 1,463,590 minus: Cash and foreign currencies (excluding restricted cash) (44,547 ) (93,355 ) (77,846 ) plus: Payable from unsettled transactions 4,189 47,075 7,380 minus: Receivable from unsettled transactions (15,522 ) (340 ) (16,427 ) Total net debt(1) $ 1,516,433 $ 1,475,648 $ 1,376,697 Total net assets $ 1,175,844 $ 1,188,803 $ 1,190,354 Total net debt-to-equity ratio(1) 1.29x 1.24x 1.16x (1) See the "Non-GAAP Financial Measures" section of this press release. View source version on Contacts Media Contact:MediaRelations@ Investor Relations:BDCinvestorrelations@ 888-401-1088 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
5 days ago
- Business
- Business Wire
Barings BDC, Inc. Reports Second Quarter 2025 Results and Announces Quarterly Cash Dividend of $0.26 Per Share
CHARLOTTE, N.C.--(BUSINESS WIRE)--Barings BDC, Inc. (NYSE: BBDC) ('Barings BDC' or the 'Company') today reported its financial and operating results for the second quarter of 2025 and announced that the Company's Board of Directors (the 'Board') declared a quarterly cash dividend of $0.26 per share. Highlights (1) Based on weighted average shares outstanding during the period of 105,232,015. (2) Based on weighted average shares outstanding during the period of 105,373,382. Expand Investment Portfolio and Balance Sheet (dollars in millions, except per share data) As of J une 30, 2 025 As of M arch 31, 2025 As of D ecember 31, 2024 Investment portfolio at fair value $2,623.9 $2,571.2 $2,449.3 Weighted average yield on performing debt investments (at principal amount) 9.8% 9.9% 10.2% Total assets $2,793.3 $2,791.3 $2,695.7 Debt outstanding (principal) $1,572.3 $1,522.3 $1,463.6 Total net assets (equity) $1,175.8 $1,188.8 $1,190.4 Net asset value per share $11.18 $11.29 $11.29 Debt-to-equity ratio 1.34x 1.28x 1.23x Net debt-to-equity ratio (adjusted for unrestricted cash and net unsettled transactions) 1.29x 1.24x 1.16x Expand Second Quarter 2025 Results Commenting on the quarter, Eric Lloyd, Chief Executive Officer of Barings BDC, stated, 'Our portfolio generated strong performance in the second quarter, delivering sequential net investment income growth. Our net investment income was $0.28 per share, fully covering our regular dividend. Further, our net investment income per share performance for the first half of 2025 fully covers our regular distributions year-to-date. Our disciplined investment approach continues to drive superior credit performance, with non-accruals at just 0.5% of our portfolio on a fair value basis. Also, we deployed almost $200 million into new and existing investments during the second quarter of 2025, in line with our strategy to deploy capital into high-quality, income producing opportunities that align with our selective investment strategy. With over $322 million of dry powder and the strength of the Barings platform, we believe that we remain well positioned to generate attractive risk-adjusted returns for our shareholders.' During the three months ended June 30, 2025, the Company reported total investment income of $74.4 million, net investment income of $29.8 million, or $0.28 per share, and a net increase in net assets resulting from operations of $20.6 million, or $0.20 per share. Net asset value ('NAV') per share as of June 30, 2025 was $11.18, as compared to $11.29 as of March 31, 2025. The decrease in NAV per share from March 31, 2025 to June 30, 2025 was primarily attributed to a net realized loss on investments, credit support agreements, foreign currency transactions and forward currency contracts of $0.14 per share, and the Company's payment of a second quarter special dividend of $0.05 per share, partially offset by net unrealized appreciation on the Company's investment portfolio, credit support agreements, foreign currency transactions and forward currency contracts of approximately $0.06 per share, and the Company's second quarter net investment income exceeding the second quarter regular dividend paid by $0.02 per share. Recent Portfolio Activity During the three months ended June 30, 2025, the Company made 19 new investments totaling $137.3 million and made investments in existing portfolio companies totaling $61.7 million. The Company had 14 loans repaid totaling $59.1 million and recognized a net realized loss on these transactions of $17.6 million. The Company also received $35.5 million of portfolio company principal payments and sales proceeds and recognized a net realized gain on these transactions of $0.3 million. The Company received $4.0 million of return of capital from joint ventures, equity, and royalty rights investments. The Company also received proceeds of $4.7 million related to the exit of one of its royalty rights investments and recognized a realized gain on such exit of $2.5 million. In addition, the Company sold $55.9 million of middle-market portfolio debt investments to its joint ventures, recognizing a net realized gain on these transactions of $0.7 million. Also, investments in two portfolio companies were restructured, which resulted in a net realized loss of $2.3 million. Lastly, the Company received proceeds related to the sales and exits of equity investments totaling $8.1 million and recognized a net realized gain on such sales totaling $5.4 million. During the three months ended June 30, 2025, the Company recorded net unrealized appreciation totaling $5.9 million, consisting of net unrealized appreciation on the Company's current portfolio of $14.7 million, net unrealized appreciation reclassification adjustments of $12.8 million related to the net realized losses on the sales / exits of certain investments, unrealized appreciation of $6.4 million on the Sierra credit support agreement with Barings LLC ('Barings'), partially offset by net unrealized depreciation related to foreign currency transactions of $15.2 million, unrealized depreciation of $9.4 million related to the net realized gain on the termination of the MVC credit support agreement with Barings and net unrealized depreciation related to forward currency contracts of $3.3 million. The net unrealized appreciation on the Company's current portfolio of $14.7 million was driven primarily by the impact of foreign currency exchange rates on investments of $34.2 million, partially offset by the credit or fundamental performance of investments of $13.0 million and broad market moves for investments of $6.5 million. Liquidity and Capitalization As of June 30, 2025, the Company had cash and foreign currencies of $49.3 million (including restricted cash of $4.7 million), $547.3 million of borrowings outstanding under its $825.0 million senior secured credit agreement, $1,025.0 million aggregate principal amount of unsecured notes outstanding and a net receivable from unsettled transactions of $11.3 million. Share Repurchase Program On February 20, 2025, the Board authorized a new 12-month share repurchase program. Under the program, the Company may repurchase, during the 12-month period commencing on March 1, 2025, up to $30.0 million in the aggregate of its outstanding common stock in the open market at prices below the then-current NAV per share. The timing, manner, price and amount of any share repurchases will be determined by the Company, in its discretion, based upon the evaluation of economic and market conditions, the Company's stock price, applicable legal, contractual and regulatory requirements and other factors. The program is expected to be in effect until March 1, 2026, unless extended or until the aggregate repurchase amount that has been approved by the Board has been expended. The program does not require the Company to repurchase any specific number of shares, and the Company cannot assure stockholders that any shares will be repurchased under the program. The program may be suspended, extended, modified or discontinued at any time. During the three months ended June 30, 2025, the Company repurchased a total of 100,000 shares of its common stock in the open market under the authorized program at an average price of $8.88 per share, including brokerage commissions. As of August 7, 2025, the Company has repurchased a total of 250,000 shares of its common stock in the open market under the authorized program at an average price of $9.35 per share, including brokerage commissions. Dividend Information The Board declared a quarterly cash dividend of $0.26 per share, which, together with the previously declared special dividend payable during the third quarter of 2025 in the amount of $0.05 per share, is payable as follows: Dividend Reinvestment Plan Barings BDC has adopted a dividend reinvestment plan ('DRIP') that provides for reinvestment of dividends and distributions on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when the Company declares a cash dividend or distribution, stockholders who have not opted out of the DRIP will have their cash dividends or distributions automatically reinvested in additional shares of the Company's common stock, rather than receiving cash. When the Company declares and pays dividends and distributions, it determines the allocation of the distribution between current income, accumulated income, capital gains and return of capital on the basis of accounting principles generally accepted in the United States ('GAAP'). At each year end, the Company is required for tax purposes to determine the allocation based on tax accounting principles. Due to differences between GAAP and tax accounting principles, the portion of each dividend distribution that is ordinary income, capital gain or return of capital may differ for GAAP and tax purposes. The tax status of the Company's distributions can be found on the Investor Relations page of its website. Subsequent Events Subsequent to June 30, 2025, the Company made approximately $59.3 million of new commitments, of which $38.6 million closed and funded. The $38.6 million of investments consists of $28.9 million of first lien senior secured debt investments, $9.4 million of subordinated debt investments and $0.3 million of equity investments. The weighted average yield of the debt investments was 9.4%. In addition, the Company funded $22.6 million of previously committed revolvers and delayed draw term loans. On August 4, 2025, the Company's 4.66% Series A senior unsecured notes due August 2025 matured in accordance with the terms of the Note Purchase Agreement with Massachusetts Mutual Life Insurance Company and the Company repaid in full the par amount plus accrued and unpaid interest. Conference Call to Discuss Second Quarter 2025 Results Barings BDC has scheduled a conference call to discuss second quarter 2025 financial and operating results for Friday, August 8, 2025, at 9:00 a.m. ET. To listen to the call, please dial 877-407-8831 or 201-493-6736 approximately 10 minutes prior to the start of the call. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available until August 15, 2025. To access the replay, please dial 877-660-6853 or 201-612-7415 and enter conference ID 13750211. This conference call will also be available via a live webcast on the investor relations section of Barings BDC's website at Access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the Company's website until August 15, 2025. Forward-Looking Statements Statements included herein or on the webcast/conference call may constitute 'forward-looking statements,' which relate to future events or Barings BDC's future performance or financial condition. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management's current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. Forward-looking statements include, but are not limited to, the Company's projected net investment income and earnings, the Company's distribution levels and frequency of distributions, the Company's share repurchase activity and investment activity, and the ability of Barings to manage Barings BDC and identify investment opportunities, all of which are subject to change at any time based upon economic, market or other conditions, and may not be relied upon as investment advice or an indication of Barings BDC's trading intent. More information on the risks and other potential factors that could affect Barings BDC's financial results and future events, including important factors that could cause actual results or events to differ materially from plans, estimates or expectations included herein or discussed on the webcast/conference call, is included in Barings BDC's filings with the Securities and Exchange Commission, including in the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections of Barings BDC's most recently filed annual report on Form 10-K, as well as in subsequent filings, including Barings BDC's quarterly reports on Form 10-Q. In addition, there is no assurance that Barings BDC or any of its affiliates will purchase additional shares of Barings BDC at any specific discount levels or in any specific amounts. There is no assurance that the market price of Barings BDC's shares, either absolutely or relative to NAV, will increase as a result of any share repurchases, or that any repurchase plan will enhance stockholder value over the long term. Non-GAAP Financial Measures To provide additional information about the Company's results, the Company's management has discussed in this press release the Company's net debt (calculated as (i) total debt less (ii) unrestricted cash and foreign currencies (excluding restricted cash) net of net payables/receivables from unsettled transactions) and its net debt-to-equity ratio (calculated as net debt divided by total net assets), which are not prepared in accordance with GAAP. These non-GAAP measures are included to supplement the Company's financial information presented in accordance with GAAP and because the Company uses such measures to monitor and evaluate its leverage and financial condition and believes the presentation of these measures enhances investors' ability to analyze trends in the Company's business and to evaluate the Company's leverage and ability to take on additional debt. However, these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for analysis of the Company's financial results as reported under GAAP. These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company's results of operations in conjunction with their corresponding GAAP measures. Pursuant to the requirements of Item 10(e) of Regulation S-K, as promulgated under the Securities Exchange Act of 1934, as amended, the Company has provided a reconciliation of these non-GAAP measures in the last table included in this press release. About Barings BDC Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Barings BDC seeks to invest primarily in senior secured loans in middle-market companies that operate across a wide range of industries. Barings BDC's investment activities are managed by its investment adviser, Barings, a leading global asset manager based in Charlotte, NC with $456+ billion* of AUM firm-wide. For more information, visit Barings is a $456+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at *Assets under management as of June 30, 2025 June 30, 2025 December 31, 2024 (Unaudited) Assets: Investments at fair value: Non-Control / Non-Affiliate investments (cost of $2,156,305 and $2,033,716 as of June 30, 2025 and December 31, 2024, respectively) $ 2,128,553 $ 1,972,373 Affiliate investments (cost of $397,878 and $382,848 as of June 30, 2025 and December 31, 2024, respectively) 409,706 397,236 Control investments (cost of $81,647 and $106,132 as of June 30, 2025 and December 31, 2024, respectively) 85,623 79,663 Total investments at fair value 2,623,882 2,449,272 Cash (restricted cash of $4,714 and $13,493 as of June 30, 2025 and December 31, 2024, respectively) 39,963 74,381 Foreign currencies (cost of $9,294 and $17,343 as of June 30, 2025 and December 31, 2024, respectively) 9,298 16,958 Interest and fees receivable 41,811 39,914 Prepaid expenses and other assets 463 1,745 Credit support agreements (cost of $44,400 and $58,000 as of June 30, 2025 and December 31, 2024, respectively) 51,200 63,450 Derivative assets 3,361 24,816 Deferred financing fees 7,807 8,697 Receivable from unsettled transactions 15,522 16,427 Total assets $ 2,793,307 $ 2,695,660 Liabilities: Accounts payable and accrued liabilities $ 3,943 $ 5,567 Interest payable 15,430 16,245 Administrative fees payable 356 540 Base management fees payable 8,193 7,888 Incentive management fees payable 11,117 7,871 Derivative liabilities 5,863 9,394 Payable from unsettled transactions 4,189 7,380 Borrowings under credit facility 547,313 438,590 Notes payable (net of deferred financing fees) 1,021,059 1,011,831 Total liabilities 1,617,463 1,505,306 Commitments and contingencies Net Assets: Common stock, $0.001 par value per share (150,000,000 shares authorized, 105,158,938 and 105,408,938 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively) 105 105 Additional paid-in capital 1,844,638 1,846,977 Total distributable earnings (loss) (668,899 ) (656,728 ) Total net assets 1,175,844 1,190,354 Total liabilities and net assets $ 2,793,307 $ 2,695,660 Net asset value per share $ 11.18 $ 11.29 Expand Barings BDC, Inc. Unaudited Consolidated Statements of Operations (in thousands, except share and per share data) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Interest income: Non-Control / Non-Affiliate investments $ 48,899 $ 54,084 $ 93,526 $ 107,273 Affiliate investments 1,181 792 2,054 1,749 Control investments 137 51 257 437 Total interest income 50,217 54,927 95,837 109,459 Dividend income: Non-Control / Non-Affiliate investments 1,668 1,324 2,811 2,645 Affiliate investments 10,108 10,410 19,707 17,565 Control investments 2,817 — 2,817 — Total dividend income 14,593 11,734 25,335 20,210 Fee and other income: Non-Control / Non-Affiliate investments 4,807 3,552 8,346 6,939 Affiliate investments 72 200 104 269 Control investments 1 17 4 34 Total fee and other income 4,880 3,769 8,454 7,242 Payment-in-kind interest income: Non-Control / Non-Affiliate investments 4,007 3,246 7,755 5,728 Affiliate investments 266 268 609 519 Control investments 235 684 463 1,076 Total payment-in-kind interest income 4,508 4,198 8,827 7,323 Interest income from cash 200 258 384 458 Total investment income 74,398 74,886 138,837 144,692 Operating expenses: Interest and other financing fees 22,176 20,774 42,373 41,856 Base management fee 8,193 8,190 16,211 16,469 Incentive management fees 11,117 1,122 18,855 9,289 General and administrative expenses 2,294 2,343 3,989 5,019 Total operating expenses 43,780 32,429 81,428 72,633 Net investment income before taxes 30,618 42,457 57,409 72,059 Income taxes, including excise tax expense 808 315 1,208 565 Net investment income after taxes $ 29,810 $ 42,142 $ 56,201 $ 71,494 Expand Barings BDC, Inc. Unaudited Consolidated Statements of Operations — (Continued) (in thousands, except share and per share data) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreements, foreign currency transactions and forward currency contracts: Net realized gains (losses): Non-Control / Non-Affiliate investments $ 6,024 $ 7,685 $ (4,360 ) $ (4,922 ) Affiliate investments — (4,179 ) — (4,179 ) Control investments (17,109 ) — (24,456 ) — Net realized gains (losses) on investments (11,085 ) 3,506 (28,816 ) (9,101 ) Credit support agreements 9,400 — 9,400 — Foreign currency transactions 787 153 2,235 393 Forward currency contracts (14,259 ) 4,415 954 (4,671 ) Net realized gains (losses) (15,157 ) 8,074 (16,227 ) (13,379 ) Net unrealized appreciation (depreciation): Non-Control / Non-Affiliate investments 8,975 (7,831 ) 31,205 672 Affiliate investments 663 (5,034 ) (1,197 ) (2,239 ) Control investments 17,817 (13,572 ) 30,447 (1,766 ) Net unrealized appreciation (depreciation) on investments 27,455 (26,437 ) 60,455 (3,333 ) Credit support agreements (3,000 ) (904 ) 1,350 (7,254 ) Foreign currency transactions (15,205 ) 1,025 (22,983 ) 4,541 Forward currency contracts (3,344 ) (4,460 ) (25,661 ) 11,372 Net unrealized appreciation (depreciation) 5,906 (30,776 ) 13,161 5,326 Net realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreements, foreign currency transactions and forward currency contracts (9,251 ) (22,702 ) (3,066 ) (8,053 ) Net increase (decrease) in net assets resulting from operations $ 20,559 $ 19,440 $ 53,135 $ 63,441 Net investment income per share — basic and diluted $ 0.28 $ 0.40 $ 0.53 $ 0.67 Net increase (decrease) in net assets resulting from operations per share — basic and diluted $ 0.20 $ 0.18 $ 0.51 $ 0.60 Dividends / distributions per share: Regular quarterly dividends / distributions $ 0.26 $ 0.26 $ 0.52 $ 0.52 Special dividends / distributions 0.05 — 0.10 — Total dividends / distributions per share $ 0.31 $ 0.26 $ 0.62 $ 0.52 Weighted average shares outstanding — basic and diluted 105,232,015 105,898,271 105,302,308 105,968,572 Expand Barings BDC, Inc. Unaudited Consolidated Statements of Cash Flows (in thousands) Six Months Ended Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities: Net increase (decrease) in net assets resulting from operations $ 53,135 $ 63,441 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: Purchases of portfolio investments (409,178 ) (216,878 ) Repayments received / sales of portfolio investments 274,620 289,310 Loan origination and other fees received 8,243 3,768 Net realized (gain) loss on investments 28,816 9,101 Net realized (gain) loss of CSAs (9,400 ) — Net realized (gain) loss on foreign currency transactions (2,235 ) (393 ) Net realized (gain) loss on forward currency contracts (954 ) 4,671 Net unrealized (appreciation) depreciation on investments (60,455 ) 3,333 Net unrealized (appreciation) depreciation of CSAs (1,350 ) 7,254 Net unrealized (appreciation) depreciation on foreign currency transactions 22,983 (4,541 ) Net unrealized (appreciation) depreciation on forward currency contracts 25,661 (11,372 ) Payment-in-kind interest / dividends (11,058 ) (10,331 ) Amortization of deferred financing fees 2,380 2,251 Accretion of loan origination and other fees (5,213 ) (5,473 ) Amortization / accretion of purchased loan premium / discount (895 ) (412 ) Proceeds from termination of CSAs 23,000 — Payments for derivative contracts (21,584 ) (11,586 ) Proceeds from derivative contracts 22,538 6,914 Changes in operating assets and liabilities: Interest and fees receivable (691 ) 14,625 Prepaid expenses and other assets 1,282 628 Accounts payable and accrued liabilities 723 (6,984 ) Interest payable (830 ) 5,877 Net cash provided by (used in) operating activities (60,462 ) 143,203 Cash flows from financing activities: Borrowings under credit facility 170,500 24,500 Repayments of credit facility (84,471 ) (388,539 ) Proceeds from notes — 300,000 Financing fees paid — (7,205 ) Purchases of shares in repurchase plan (2,339 ) (3,015 ) Cash dividends / distributions paid (65,306 ) (55,109 ) Net cash provided by (used in) financing activities 18,384 (129,368 ) Net increase (decrease) in cash and foreign currencies (42,078 ) 13,835 Cash and foreign currencies, beginning of period 91,339 70,528 Cash and foreign currencies, end of period $ 49,261 $ 84,363 Supplemental Information: Cash paid for interest $ 38,453 $ 32,855 Excise taxes paid during the period $ 3,665 $ 1,700 Expand (1) See the 'Non-GAAP Financial Measures' section of this press release. Expand
Yahoo
22-07-2025
- Business
- Yahoo
Is Barings BDC (BBDC) a Buy for Dividend Investors Looking Under $20?
Barings BDC, Inc. (NYSE:BBDC) is included among the 13 Best Dividend Stocks to Buy Under $20. A close up view of a bank of computers and wires, showing the complex technology powering the company's financial services. The company reported mixed earnings in the first quarter of 2025, with revenues coming in at $64.4 million. The revenue showed a 7.7% YoY decline and also missed analysts' estimates by $3.35 million. The company reported net investment income of $26.4 million, translating to $0.25 per share. In addition, there was a net increase in net assets from operations amounting to $32.6 million, or $0.31 per share. For the quarter ending March 31, 2025, Barings BDC, Inc. (NYSE:BBDC) made 14 new investments amounting to $128.2 million and allocated an additional $78.7 million to existing portfolio companies. It saw the repayment of 10 loans totaling $66.1 million, resulting in a net realized loss of $10.2 million. Moreover, the company collected $33.9 million from principal payments and sales of portfolio assets, recognizing a net realized loss of $0.4 million. It also received $5.2 million in return of capital from joint ventures, equity holdings, and royalty rights investments. Barings BDC, Inc. (NYSE:BBDC) is a strong dividend payer, paying uninterrupted dividends to shareholders since 2007. It offers a quarterly dividend of $0.26 per share and has a dividend yield of 10.95%, as of July 21. While we acknowledge the potential of BBDC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
Globe and Mail
08-07-2025
- Business
- Globe and Mail
Barings BDC, Inc. Announces Conference Call to Discuss Second Quarter 2025 Results
Barings BDC, Inc. (NYSE: BBDC) ('Barings BDC' or the 'Company') announced today that it will report its financial results for the second quarter ended June 30, 2025 on Thursday, August 7, 2025, after the market closes. Barings BDC, Inc. has scheduled a conference call to discuss its second quarter 2025 financial results for Friday, August 8, 2025, at 9:00 a.m. ET. To listen to the call, please dial 877-407-8831 or 201-493-6736 approximately 10 minutes prior to the start of the call. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available until August 15, 2025. To access the replay, please dial 877-660-6853 or 201-612-7415 and enter conference ID 13750211. Barings BDC's quarterly financial results conference call will also be available via a live webcast on the investor relations section of its website at Access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the Company's website until August 15, 2025. About Barings BDC, Inc. Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Barings BDC seeks to invest primarily in senior secured loans in middle-market companies that operate across a wide range of industries. Barings BDC's investment activities are managed by its investment adviser, Barings LLC, a leading global asset manager based in Charlotte, NC with $442+ billion* of AUM firm-wide. For more information, visit Barings is a $442+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at *Assets under management as of March 31, 2025
