BBDC Barings BDC Inc

Barings BDC, Inc. (NYSE: BBDC) (“Barings BDC” or the “Company”) today reported its financial and operating results for the fourth quarter and full year of 2024 and announced that the Company’s Board of Directors (the “Board”) declared a quarterly cash dividend of $0.26 per share and special dividends totaling $0.15 per share, which special dividends will be paid in three equal quarterly installments of $0.05 per share in each of the first three quarters of 2025.

Highlights

Income Statement

Three Months Ended

December 31, 2024

Three Months Ended

September 30, 2024

Full Year Ended

December 31, 2024

(dollars in millions, except per share data)

Total Amount

Per

Share(1)

Total Amount

Per

Share(2)

Total Amount

Per Share(3)

Net investment income

$29.5

$0.28

$30.2

$0.29

$131.2

$1.24

Net realized gains (losses)

$(13.8)

$(0.13)

$(10.9)

$(0.10)

$(38.1)

$(0.36)

Net unrealized appreciation (depreciation)

$9.2

$0.08

$2.7

$0.02

$17.2

$0.16

Net increase in net assets resulting from operations

$24.8

$0.24

$22.0

$0.21

$110.3

$1.04

Dividends paid

 

$0.26

 

$0.26

 

$1.04

(1) Based on weighted average shares outstanding during the period of 105,523,884.

(2) Based on weighted average shares outstanding during the period of 105,715,277.

(3) Based on weighted average shares outstanding during the period of 105,793,123.

Investment Portfolio and Balance Sheet

 

 

 

(dollars in millions, except per share data)

As of

December 31, 2024

As of

September 30, 2024

As of

December 31, 2023

Investment portfolio at fair value

$2,449.3

$2,416.7

$2,488.7

Weighted average yield on performing debt investments (at principal amount)

10.2 %

10.6 %

10.5 %

 

 

 

 

Total assets

$2,695.7

$2,605.1

$2,677.5

Debt outstanding (principal)

$1,463.6

$1,372.8

$1,444.9

Total net assets (equity)

$1,190.4

$1,194.4

$1,196.6

Net asset value per share

$11.29

$11.32

$11.28

Debt-to-equity ratio

1.23x

1.15x

1.21x

Net debt-to-equity ratio (adjusted for unrestricted cash and net unsettled transactions)

1.16x

1.09x

1.15x

Fourth Quarter 2024 Results

Commenting on the quarter, Eric Lloyd, Chief Executive Officer of Barings BDC, stated, “We are pleased to have a strong end to 2024, which saw us deliver record full year net investment income, with a final quarter of robust results. Specifically, in the fourth quarter we out-earned the dividend on a pre-tax basis by more than 15%, further reduced our non-accrual rate to 0.3% of fair value, which further strengthens our position among industry leaders, and deployed $297.9 million towards attractive investments across a range of industries. We believe this consistently positive performance through the year demonstrates the merits of our focused, rigorous and disciplined approach to investing primarily in directly originated, senior-secured loans to middle-market borrowers. Based on these strong results, our confidence in our portfolio, and the momentum we have seen so far in 2025, we are announcing a first quarter dividend of $0.26 per share, and a special dividend totaling $0.15 per share which will be paid in three equal quarterly installments starting in March.”

During the three months ended December 31, 2024, the Company reported total investment income of $70.6 million, net investment income of $29.5 million, or $0.28 per share, and a net increase in net assets resulting from operations of $24.8 million, or $0.24 per share.

Net asset value (“NAV”) per share as of December 31, 2024 was $11.29, as compared to $11.32 as of September 30, 2024. The decrease in NAV per share from September 30, 2024 to December 31, 2024 was primarily attributed to a net realized loss on investments, foreign currency transactions and forward currency contracts of $0.13 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 $0.08 per share and net investment income exceeding the Company’s fourth quarter dividend by $0.02 per share.

Recent Portfolio Activity

During the three months ended December 31, 2024, the Company made 15 new investments totaling $137.9 million, made investments in existing portfolio companies totaling $156.5 million and made a $3.5 million equity co-investment alongside certain affiliates in a portfolio company that specializes in providing financing to plaintiff law firms engaged in mass tort and other civil litigation. The Company had 12 loans repaid totaling $78.1 million and recognized a net realized loss on these transactions of $0.8 million. The Company received $110.4 million of portfolio company principal payments and sales proceeds and recognized a net realized loss of $0.5 million. The Company received $6.1 million of return of capital from its joint ventures, equity, and royalty rights investments. In addition, the Company sold $27.2 million of middle-market portfolio debt investments to its joint ventures, recognizing a net realized loss on these transactions of $0.4 million. In addition, investments in two portfolio companies were restructured, which resulted in a net realized loss of $4.7 million. Lastly, the Company received proceeds related to the sale of equity investments totaling $0.6 million and recognized a net realized gain on such sales totaling $0.3 million.

During the three months ended December 31, 2024, the Company recorded net unrealized appreciation totaling $9.2 million, consisting of net unrealized appreciation related to forward currency contracts of $27.9 million, net unrealized appreciation related to foreign currency transactions of $14.5 million, unrealized appreciation of $12.0 million on the Sierra credit support agreement with Barings, unrealized appreciation reclassification adjustments of $2.8 million related to the net realized losses on the sales / exits and restructuring of certain investments and unrealized appreciation of $0.3 million on the MVC credit support agreement with Barings, partially offset by net unrealized depreciation on the Company’s current portfolio of $46.0 million and deferred taxes of $2.3 million. The net unrealized depreciation on the Company’s current portfolio of $46.0 million was driven primarily by the impact of foreign currency exchange rates on investments of $37.4 million and the credit or fundamental performance of investments of $10.3 million, partially offset by broad market moves for investments of $1.7 million.

Liquidity and Capitalization

As of December 31, 2024, the Company had cash and foreign currencies of $91.3 million (including restricted cash of $13.5 million), $438.6 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 $9.0 million.

Share Repurchase Program

On February 22, 2024, the Board authorized a 12-month share repurchase program (the “Prior Share Repurchase Program”). Under the Prior Share Repurchase Program, the Company may repurchase, during the 12-month period that commenced on March 1, 2024, 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 Prior Share Repurchase Program is expected to be in effect until March 1, 2025, unless extended or until the aggregate repurchase amount that has been approved by the Board has been expended. The Prior Share Repurchase 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 Prior Share Repurchase Program. The Prior Share Repurchase Program may be suspended, extended, modified or discontinued at any time. As of February 20, 2025, the Company had repurchased a total of 658,132 shares of its common stock in the open market under the Prior Share Repurchase Program at an average price of $9.79 per share, including brokerage commissions.

On February 20, 2025, the Board authorized a new 12-month share repurchase program (the “Share Repurchase Program”). Under the Share Repurchase 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 Share Repurchase 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 Share Repurchase 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.

Dividend Information

The Board declared a quarterly cash dividend of $0.26 per share, which is payable as follows:

First Quarter 2025 Dividend:

Amount per share:

$0.26

Record date:

March 5, 2025

Payment date:

March 12, 2025

The Board also declared three special dividends totaling $0.15 per share to be paid in three equal installments during the first three quarters of 2025. The first $0.05 per share special dividend will be paid on March 12, 2025, to stockholders of record as of the close of business on March 5, 2025. The second $0.05 per share special dividend will be paid on June 11, 2025, to stockholders of record as of the close of business on June 4, 2025. The third $0.05 per share special dividend will be paid on September 10, 2025, to stockholders of record as of the close of business on September 3, 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 December 31, 2024, the Company made approximately $81.3 million of new commitments, of which $49.9 million closed and funded. The $49.9 million of investments consist of $49.8 million of first lien senior secured debt investments, $0.1 million of second lien senior secured debt investments and $18.3 thousand of equity investments. The weighted average yield of the debt investments was 9.5%. In addition, the Company funded $9.9 million of previously committed revolvers and delayed draw term loans.

Conference Call to Discuss Fourth Quarter and Full Year 2024 Results

Barings BDC has scheduled a conference call to discuss fourth quarter and full year 2024 financial and operating results for Friday, February 21, 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 February 28, 2025. To access the replay, please dial 877-660-6853 or 201-612-7415 and enter conference ID 13750208.

This conference call will also be available via a live webcast on the investor relations section of Barings BDC’s website at https://ir.barings.com/ir-calendar. 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 February 28, 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 LLC 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 annual report on Form 10-K and 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 LLC, a leading global asset manager based in Charlotte, NC with $421+ billion* of AUM firm-wide. For more information, visit www.baringsbdc.com.

About Barings LLC

Barings is a $421+ 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 www.barings.com.

*Assets under management as of December 31, 2024

Barings BDC, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

December 31,

 

 

 

2024

 

 

 

2023

 

Assets:

 

 

 

 

Investments at fair value:

 

 

 

 

Non-Control / Non-Affiliate investments (cost of $2,033,716 and $2,053,548 as of December 31, 2024 and 2023, respectively)

 

$

1,972,373

 

 

$

1,995,372

 

Affiliate investments (cost of $382,848 and $378,865 as of December 31, 2024 and 2023, respectively)

 

 

397,236

 

 

 

402,423

 

Control investments (cost of $106,132 and $103,163 as of December 31, 2024 and 2023, respectively)

 

 

79,663

 

 

 

90,920

 

Total investments at fair value

 

 

2,449,272

 

 

 

2,488,715

 

Cash (restricted cash of $13,493,000 and $0 as of December 31, 2024 and 2023, respectively)

 

 

74,381

 

 

 

57,187

 

Foreign currencies (cost of $17,343 and $13,023 as of December 31, 2024 and 2023, respectively)

 

 

16,958

 

 

 

13,341

 

Interest and fees receivable

 

 

39,914

 

 

 

51,598

 

Prepaid expenses and other assets

 

 

1,745

 

 

 

3,564

 

Credit support agreements (cost of $58,000 as of both December 31, 2024 and 2023)

 

 

63,450

 

 

 

57,800

 

Derivative assets

 

 

24,816

 

 

 

1

 

Deferred financing fees

 

 

8,697

 

 

 

3,948

 

Receivable from unsettled transactions

 

 

16,427

 

 

 

1,299

 

Total assets

 

$

2,695,660

 

 

$

2,677,453

 

Liabilities:

 

 

 

 

Accounts payable and accrued liabilities

 

$

5,567

 

 

$

2,950

 

Interest payable

 

 

16,245

 

 

 

8,450

 

Administrative fees payable

 

 

540

 

 

 

536

 

Base management fees payable

 

 

7,888

 

 

 

8,347

 

Incentive management fees payable

 

 

7,871

 

 

 

7,737

 

Derivative liabilities

 

 

9,394

 

 

 

11,265

 

Payable from unsettled transactions

 

 

7,380

 

 

 

1,112

 

Borrowings under credit facilities

 

 

438,590

 

 

 

719,914

 

Notes payable (net of deferred financing fees)

 

 

1,011,831

 

 

 

720,583

 

Total liabilities

 

 

1,505,306

 

 

 

1,480,894

 

Commitments and contingencies

 

 

 

 

Net Assets:

 

 

 

 

Common stock, $0.001 par value per share (150,000,000 shares authorized, 105,408,938 and 106,067,070 shares issued and outstanding as of December 31, 2024 and 2023, respectively)

 

 

105

 

 

 

106

 

Additional paid-in capital

 

 

1,846,977

 

 

 

1,854,457

 

Total distributable earnings (loss)

 

 

(656,728

)

 

 

(658,004

)

Total net assets

 

 

1,190,354

 

 

 

1,196,559

 

Total liabilities and net assets

 

$

2,695,660

 

 

$

2,677,453

 

Net asset value per share

 

$

11.29

 

 

$

11.28

 

Barings BDC, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)

 

 

 

Three Months

Ended (Unaudited)

 

Full Year

Ended

 

 

December 31, 2024

 

September 30, 2024

 

December 31, 2024

Investment income:

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

$

49,228

 

 

$

50,787

 

$

207,288

Affiliate investments

 

 

977

 

 

 

854

 

 

3,579

Control investments

 

 

(65

)

 

 

22

 

 

395

Total interest income

 

 

50,140

 

 

 

51,663

 

 

211,262

Dividend income:

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

 

2,339

 

 

 

1,190

 

 

6,174

Affiliate investments

 

 

8,745

 

 

 

8,651

 

 

34,961

Total dividend income

 

 

11,084

 

 

 

9,841

 

 

41,135

Fee and other income:

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

 

5,323

 

 

 

4,221

 

 

16,484

Affiliate investments

 

 

31

 

 

 

52

 

 

352

Control investments

 

 

6

 

 

 

16

 

 

56

Total fee and other income

 

 

5,360

 

 

 

4,289

 

 

16,892

Payment-in-kind interest income:

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

 

3,147

 

 

 

3,987

 

 

12,861

Affiliate investments

 

 

1

 

 

 

193

 

 

713

Control investments

 

 

464

 

 

 

622

 

 

2,162

Total payment-in-kind interest income

 

 

3,612

 

 

 

4,802

 

 

15,736

Interest income from cash

 

 

429

 

 

 

256

 

 

1,144

Total investment income

 

 

70,625

 

 

 

70,851

 

 

286,169

Operating expenses:

 

 

 

 

 

 

Interest and other financing fees

 

 

21,097

 

 

 

22,563

 

 

85,516

Base management fee

 

 

7,889

 

 

 

8,046

 

 

32,404

Incentive management fees

 

 

7,871

 

 

 

6,597

 

 

23,757

General and administrative expenses

 

 

2,386

 

 

 

2,427

 

 

9,832

Total operating expenses

 

 

39,243

 

 

 

39,633

 

 

151,509

Net investment income before taxes

 

 

31,382

 

 

 

31,218

 

 

134,660

Income taxes, including excise tax expense

 

 

1,867

 

 

 

1,033

 

 

3,466

Net investment income after taxes

 

$

29,515

 

 

$

30,185

 

$

131,194

Barings BDC, Inc.

Consolidated Statements of Operations - (Continued)

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

Three Months

Ended (Unaudited)

 

Full Year

Ended

 

 

December 31,

2024

 

September 30,

2024

 

December 3, 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

 

$

(5,284

)

 

$

(8,543

)

 

$

(18,749

)

Affiliate investments

 

 

—

 

 

 

—

 

 

 

(4,179

)

Control investments

 

 

(845

)

 

 

—

 

 

 

(845

)

Net realized gains (losses) on investments

 

 

(6,129

)

 

 

(8,543

)

 

 

(23,773

)

Foreign currency transactions

 

 

(1,437

)

 

 

508

 

 

 

(535

)

Forward currency contracts

 

 

(6,273

)

 

 

(2,859

)

 

 

(13,804

)

Net realized gains (losses)

 

 

(13,839

)

 

 

(10,894

)

 

 

(38,112

)

Net unrealized appreciation (depreciation):

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

 

(31,065

)

 

 

24,957

 

 

 

(5,436

)

Affiliate investments

 

 

(3,478

)

 

 

(3,452

)

 

 

(9,169

)

Control investments

 

 

(10,964

)

 

 

(1,496

)

 

 

(14,226

)

Net unrealized appreciation (depreciation) on investments

 

 

(45,507

)

 

 

20,009

 

 

 

(28,831

)

Credit support agreements

 

 

12,250

 

 

 

654

 

 

 

5,650

 

Foreign currency transactions

 

 

14,540

 

 

 

(9,775

)

 

 

9,306

 

Forward currency contracts

 

 

27,869

 

 

 

(8,159

)

 

 

31,082

 

Net unrealized appreciation (depreciation)

 

 

9,152

 

 

 

2,729

 

 

 

17,207

 

Net realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreements, foreign currency transactions and forward currency contracts

 

 

(4,687

)

 

 

(8,165

)

 

 

(20,905

)

Net increase (decrease) in net assets resulting from operations

 

$

24,828

 

 

$

22,020

 

 

$

110,289

 

Net investment income per share — basic and diluted

 

$

0.28

 

 

$

0.29

 

 

$

1.24

 

Net increase (decrease) in net assets resulting from operations per

share — basic and diluted

 

$

0.24

 

 

$

0.21

 

 

$

1.04

 

Dividends / distributions per share:

 

 

 

 

 

 

Total dividends / distributions per share

 

$

0.26

 

 

$

0.26

 

 

$

1.04

 

Weighted average number of shares outstanding — basic and diluted

 

 

105,523,884

 

 

 

105,715,277

 

 

 

105,793,123

 

Barings BDC, Inc.

Consolidated Statements of Cash Flows

(in thousands)

 

 

Year Ended December 31,

 

 

 

2024

 

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

110,289

 

 

$

127,999

 

 

$

4,681

 

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

 

 

(637,440

)

 

 

(614,648

)

 

 

(1,162,247

)

Net cash acquired from Sierra merger (cash consideration paid)

 

 

—

 

 

 

—

 

 

 

101,896

 

Transaction costs from Sierra merger

 

 

—

 

 

 

—

 

 

 

(8,127

)

Repayments received / sales of portfolio investments

 

 

641,752

 

 

 

593,505

 

 

 

1,041,370

 

Loan origination and other fees received

 

 

8,694

 

 

 

8,286

 

 

 

20,120

 

Net realized (gain) loss on investments

 

 

23,773

 

 

 

59,533

 

 

 

11,020

 

Net realized (gain) loss on foreign currency transactions

 

 

535

 

 

 

(4,160

)

 

 

1,259

 

Net realized (gain) loss on forward currency contracts

 

 

13,804

 

 

 

7,377

 

 

 

(25,140

)

Net unrealized (appreciation) depreciation on investments

 

 

28,831

 

 

 

(67,394

)

 

 

124,189

 

Net unrealized (appreciation) depreciation of CSAs

 

 

(5,650

)

 

 

(4,714

)

 

 

6,714

 

Net unrealized (appreciation) depreciation on foreign currency transactions

 

 

(9,306

)

 

 

13,389

 

 

 

(22,812

)

Net unrealized (appreciation) depreciation on forward currency contracts

 

 

(31,082

)

 

 

(3,905

)

 

 

14,950

 

Payment-in-kind interest / dividends

 

 

(18,245

)

 

 

(26,540

)

 

 

(12,307

)

Amortization of deferred financing fees

 

 

4,684

 

 

 

3,285

 

 

 

3,053

 

Accretion of loan origination and other fees

 

 

(11,651

)

 

 

(8,425

)

 

 

(11,538

)

Amortization / accretion of purchased loan premium / discount

 

 

(1,092

)

 

 

(1,895

)

 

 

(2,322

)

Payments for derivative contracts

 

 

(24,075

)

 

 

(21,742

)

 

 

(5,628

)

Proceeds from derivative contracts

 

 

10,271

 

 

 

14,365

 

 

 

30,768

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Interest and fees receivable

 

 

8,417

 

 

 

(6,431

)

 

 

(14,597

)

Prepaid expenses and other assets

 

 

(203

)

 

 

(462

)

 

 

(3,214

)

Accounts payable and accrued liabilities

 

 

2,048

 

 

 

8,710

 

 

 

(7,756

)

Interest payable

 

 

7,807

 

 

 

811

 

 

 

1,935

 

Net cash provided by (used in) operating activities

 

 

122,161

 

 

 

76,944

 

 

 

86,267

 

Cash flows from financing activities:

 

 

 

 

 

 

Borrowings under credit facilities

 

 

206,500

 

 

 

93,447

 

 

 

244,657

 

Repayments of credit facilities

 

 

(477,568

)

 

 

(113,105

)

 

 

(148,061

)

Proceeds from notes

 

 

300,000

 

 

 

—

 

 

 

—

 

Financing fees paid

 

 

(13,788

)

 

 

(2,404

)

 

 

(1,870

)

Purchases of shares in repurchase plan

 

 

(6,442

)

 

 

(14,772

)

 

 

(32,105

)

Cash dividends / distributions paid

 

 

(110,052

)

 

 

(108,997

)

 

 

(93,726

)

Net cash provided by (used in) financing activities

 

 

(101,350

)

 

 

(145,831

)

 

 

(31,105

)

Net increase (decrease) in cash and foreign currencies

 

 

20,811

 

 

 

(68,887

)

 

 

55,162

 

Cash and foreign currencies, beginning of period

 

 

70,528

 

 

 

139,415

 

 

 

84,253

 

Cash and foreign currencies, end of period

 

$

91,339

 

 

$

70,528

 

 

$

139,415

 

 

 

 

 

 

 

 

 

Barings BDC, Inc.

Consolidated Statements of Cash Flows - (Continued)

(in thousands)

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Supplemental Information:

 

 

 

 

 

 

Cash paid for interest

 

$

68,189

 

$

79,409

 

$

50,641

 

Excise taxes paid during the period

 

 

1,936

 

 

1,012

 

 

—

 

Supplemental non-cash information

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

Fair value of net assets acquired, net of cash

 

 

—

 

 

—

 

 

(435,812

)

Transaction costs

 

 

—

 

 

—

 

 

2,433

 

Common stock issued in acquisition of net assets

 

 

—

 

 

—

 

 

499,418

 

Credit support agreement

 

 

—

 

 

—

 

 

(44,400

)

Deemed contribution - from Adviser

 

 

—

 

 

—

 

 

27,730

 

Deemed contributions - CSA

 

 

—

 

 

—

 

 

44,400

 

Barings BDC, Inc.

Unaudited Reconciliation of Debt to Net Debt and Calculation of Net Debt-to-Equity Ratio

(in thousands, except ratios)

 

 

As of

December 31,

2024

 

As of

September 30,

2024

 

As of

December 31, 2023

Total debt (principal)

 

$

1,463,590

 

 

$

1,372,811

 

 

$

1,444,914

 

minus: Cash and foreign currencies (excluding restricted cash)

 

 

(77,846

)

 

 

(62,781

)

 

 

(70,528

)

plus: Payable from unsettled transactions

 

 

7,380

 

 

 

988

 

 

 

1,112

 

minus: Receivable from unsettled transactions

 

 

(16,427

)

 

 

(12,821

)

 

 

(1,299

)

Total net debt(1)

 

$

1,376,697

 

 

$

1,298,197

 

 

$

1,374,199

 

 

 

 

 

 

 

 

Total net assets

 

$

1,190,354

 

 

$

1,194,441

 

 

$

1,196,559

 

 

 

 

 

 

 

 

Total net debt-to-equity ratio(1)

 

1.16 x

 

1.09 x

 

1.15 x

(1) See the “Non-GAAP Financial Measures” section of this press release.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250220210504/en/

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