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Financial Data and Key Metrics Changes - Net asset value per share was $11.18, reflecting a 1% decline quarter over quarter [25] - Net investment income for the quarter was $0.28 per share, an increase from $0.25 per share in the prior quarter [12][27] - The weighted average yield at fair value remained unchanged at 10.1% [14] - The net leverage ratio was 1.29 times at quarter end, up from 1.24 times as of March 31 [28] Business Line Data and Key Metrics Changes - Gross originations were nearly $200 million, with net originations of $32 million [6] - Barings originated positions now make up 95% of the BBDC portfolio at fair value, up from 76% in 2022 [13] - Non-accrual rate improved to 50 basis points at fair value, well below industry averages [13][23] Market Data and Key Metrics Changes - The portfolio consists of 74% secured investments, with approximately 71% being first lien securities [21] - Interest coverage within the portfolio was 2.4 times, above industry averages [21] Company Strategy and Development Direction - The company focuses on core middle market investments due to lower leverage and stronger risk-adjusted returns [6] - Emphasis on sectors that perform resiliently across economic environments to provide stability [6] - The company maintains a cautious optimism about the broader economy and is well-positioned to withstand various economic developments [7][16] Management's Comments on Operating Environment and Future Outlook - The economic outlook remains uncertain, but the company believes its durable portfolio construction will help navigate future challenges [16] - Management noted that macroeconomic events have not historically produced widespread defaults, with idiosyncratic risks being more significant [20] - The company expects increased M&A activity in the latter half of the year based on current market indicators [11] Other Important Information - The Board declared a third-quarter dividend of $0.26 per share, consistent with the prior quarter [14][30] - The company repurchased 100,000 shares during the quarter, totaling 250,000 shares under the current plan [31] Q&A Session Summary Question: Can you expand on the profile of sales to Jakafi and overall leverage? - Management indicated that Jakafi has ample liquidity to absorb incremental investments and that they will continue to run leverage towards the higher end of their range due to strong credit quality [35][40] Question: How does the new name ScreenVision fit into the Barings platform? - Management noted that there is significant collaboration across investment teams, with a centralized sourcing process [43][44] Question: What percentage of originations were follow-ons versus new borrowers? - Approximately 60-70% of originations were follow-ons for existing borrowers [50] Question: How is the pipeline looking after the second quarter? - Management expressed optimism about forward visibility on origination, despite the same economic outlook as previous years [52] Question: How sustainable is the dividend given the forward curve? - Management expressed confidence in earning the dividend based on the current SAFR curve, despite potential changes due to rate cuts [60][62] Question: What is the current state of credit in the cycle? - Management indicated a constructive setup for credit, with modest growth and stable inflation, but acknowledged uncertainty in the future [63] Question: How is the share repurchase program being managed? - Management explained that tactical elements and blackout periods influence share repurchase activity, but they remain focused on shareholder accretive activities [68][70] Question: Is August seeing increased deal activity? - Management noted that while the pipeline is higher, it is too early to declare August as one of the busiest months [72][75]

Financial Performance - Barings BDC's net asset value (NAV) as of June 30, 2025, was $11.18 per share, compared to $11.29 per share as of March 31, 2025, representing a 1.0% decrease[26] - The Board of Directors approved a third quarter 2025 regular dividend of $0.26 per share, along with a previously declared special dividend of $0.05 per share[26] - Net investment income for the quarter ended June 30, 2025, was $0.28 per share[26] Portfolio Composition and Activity - Total originations during the quarter were $199 million, while sales and repayments totaled $167 million, resulting in net originations of $32 million[26] - The weighted-average portfolio yield as of June 30, 2025, was 10.1%[26] - Total non-accruals represented 0.5% of the total portfolio at fair value[26] - Sponsored and Non-Sponsored corporate issuers accounted for 86% of the BBDC portfolio as of June 30, 2025[35] - The top issuer accounted for 5.9% of exposure, and the top 10 issuers accounted for 23.4% of the portfolio as of June 30, 2025[37] - Approximately 84% of the portfolio is comprised of secured assets, considering the look-through exposure of investments in Eclipse and Rocade[38] Capital Structure and Liquidity - Debt-to-equity as of June 30, 2025, was 1.34x, or 1.29x after adjusting for unrestricted cash and foreign currencies and net unsettled transactions[64] - Barings LLC made a $23 million payment during 2Q25 related to the MVC CSA termination[56] - Barings manages over $50 billion in direct lending platform[13]

Core Viewpoint - Barings BDC reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, but down from $0.4 per share a year ago, indicating a mixed performance in earnings despite a positive surprise this quarter [1][2]. Financial Performance - The company achieved revenues of $74.4 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 10.32%, although this is a slight decrease from $74.89 million in the same quarter last year [2]. - Over the last four quarters, Barings BDC has exceeded consensus revenue estimates three times [2]. Stock Performance - Barings BDC shares have declined approximately 2.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $66.19 million, and for the current fiscal year, it is $1.04 on revenues of $262.21 million [7]. - The trend of earnings estimate revisions prior to the earnings release was mixed, indicating potential volatility in future estimates [6]. Industry Context - The Financial - SBIC & Commercial Industry, to which Barings BDC belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting a challenging environment for the sector [8].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________________ Form 10-Q __________________________________________________________ (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 814-00733 _______ ...

[Executive Summary and Key Highlights](index=1&type=section&id=Executive%20Summary%20and%20Key%20Highlights) This section provides an overview of the Company's Q2 2025 performance, highlighting key financial metrics, investment portfolio status, and the CEO's strategic commentary [Highlights](index=1&type=section&id=Highlights) This section presents key financial and operational highlights for the second quarter of 2025, including income statement metrics, investment portfolio details, and balance sheet figures, providing a quick overview of the Company's performance and financial position Income Statement Highlights (dollars in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Per Share (1) | Three Months Ended March 31, 2025 | 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 | Investment Portfolio and Balance Sheet Highlights (dollars in millions, except per share data) | Metric | 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 | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Eric Lloyd highlighted strong portfolio performance in the second quarter of 2025, delivering sequential net investment income growth that fully covered the regular dividend. He emphasized the disciplined investment approach, low non-accruals, and strategic capital deployment into high-quality, income-producing opportunities, noting the Company's strong position with significant dry powder - Net investment income was **$0.28 per share**, fully covering the regular dividend[5](index=5&type=chunk) - Non-accruals stood at a low **0.5% of the portfolio** on a fair value basis, indicating superior credit performance[5](index=5&type=chunk) - Deployed almost **$200 million** into new and existing investments during Q2 2025, aligning with the strategy to invest in high-quality, income-producing opportunities[5](index=5&type=chunk) - The Company maintains over **$322 million of dry powder**, positioning it well to generate attractive risk-adjusted returns[5](index=5&type=chunk) [Operating and Financial Review](index=2&type=section&id=Operating%20and%20Financial%20Review) This section provides a detailed analysis of the Company's financial performance, investment activities, liquidity, capitalization, share repurchase program, and dividend information for the second quarter of 2025 [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) For the second quarter of 2025, Barings BDC reported total investment income of $74.4 million and net investment income of $29.8 million, or $0.28 per share. The net asset value (NAV) per share decreased to $11.18 from $11.29, primarily due to net realized losses on investments and a special dividend payment, partially offset by net unrealized appreciation Second Quarter 2025 Financial Performance (in millions) | Metric | Amount (in millions) | Per Share | | :----------------------------------- | :------------------- | :-------- | | Total investment income | $74.4 | | | Net investment income | $29.8 | $0.28 | | Net increase in net assets resulting from operations | $20.6 | $0.20 | - Net asset value (NAV) per share decreased to **$11.18** as of June 30, 2025, from **$11.29** as of March 31, 2025[7](index=7&type=chunk) - The decrease in NAV per share was primarily attributed to a net realized loss on investments (**$0.14 per share**) and a special dividend payment (**$0.05 per share**), partially offset by net unrealized appreciation (**$0.06 per share**) and net investment income exceeding the regular dividend (**$0.02 per share**)[7](index=7&type=chunk) [Investment Portfolio Activity](index=2&type=section&id=Investment%20Portfolio%20Activity) During Q2 2025, the Company actively managed its portfolio by making $137.3 million in new investments and $61.7 million in existing companies. It experienced $59.1 million in loan repayments, recognizing a net realized loss of $17.6 million, while also generating various realized gains from other portfolio activities. The quarter concluded with a net unrealized appreciation of $5.9 million, largely influenced by foreign currency exchange rates - Made **19 new investments** totaling **$137.3 million** and invested **$61.7 million** in existing portfolio companies[8](index=8&type=chunk) - Experienced **14 loan repayments** totaling **$59.1 million**, resulting in a net realized loss of **$17.6 million**[8](index=8&type=chunk) - Recognized net realized gains of **$0.3 million** from portfolio company principal payments/sales, **$2.5 million** from a royalty rights investment exit, **$0.7 million** from sales to joint ventures, and **$5.4 million** from equity investment sales/exits[8](index=8&type=chunk) - Recorded net unrealized appreciation totaling **$5.9 million**, primarily driven by the impact of foreign currency exchange rates on investments (**$34.2 million**), partially offset by credit/fundamental performance (**$13.0 million**) and broad market moves (**$6.5 million**)[9](index=9&type=chunk) [Liquidity and Capitalization](index=2&type=section&id=Liquidity%20and%20Capitalization) As of June 30, 2025, Barings BDC maintained $49.3 million in cash and foreign currencies. The Company had $547.3 million outstanding under its senior secured credit agreement and $1,025.0 million in unsecured notes, indicating its current leverage and available borrowing capacity - Cash and foreign currencies totaled **$49.3 million** as of June 30, 2025 (including **$4.7 million restricted cash**)[10](index=10&type=chunk) - Borrowings outstanding under its **$825.0 million** senior secured credit agreement were **$547.3 million**[10](index=10&type=chunk) - The Company had **$1,025.0 million** aggregate principal amount of unsecured notes outstanding[10](index=10&type=chunk) [Share Repurchase Program](index=2&type=section&id=Share%20Repurchase%20Program) The Board authorized a new 12-month share repurchase program on February 20, 2025, allowing the Company to repurchase up to $30.0 million of common stock at prices below NAV per share. During Q2 2025, 100,000 shares were repurchased at an average price of $8.88 per share, with total repurchases reaching 250,000 shares at an average of $9.35 per share as of August 7, 2025 - A new 12-month share repurchase program was authorized on February 20, 2025, for up to **$30.0 million** of common stock at prices below NAV per share, effective March 1, 2025, until March 1, 2026[11](index=11&type=chunk) - During the three months ended June 30, 2025, the Company repurchased **100,000 shares** at an average price of **$8.88 per share**[11](index=11&type=chunk) - As of August 7, 2025, a total of **250,000 shares** have been repurchased under the program at an average price of **$9.35 per share**[11](index=11&type=chunk) [Dividend Information](index=3&type=section&id=Dividend%20Information) The Board declared a quarterly cash dividend of $0.26 per share, which, combined with a previously announced special dividend of $0.05 per share, totals $0.31 per share for the third quarter of 2025. This dividend is payable on September 10, 2025, to shareholders of record on September 3, 2025 Third Quarter 2025 Dividend Details | Metric | Value | | :-------------------- | :------ | | Amount per share | $0.31 | | Record date | September 3, 2025 | | Payment date | September 10, 2025 | - The total dividend of **$0.31 per share** comprises a regular quarterly cash dividend of **$0.26 per share** and a special dividend of **$0.05 per share**[12](index=12&type=chunk) [Dividend Reinvestment Plan](index=3&type=section&id=Dividend%20Reinvestment%20Plan) Barings BDC offers a Dividend Reinvestment Plan (DRIP) that automatically reinvests dividends and distributions into additional common stock shares for participating stockholders. The tax classification of these distributions may vary between GAAP and tax accounting principles, with further details available on the Company's investor relations website - The Dividend Reinvestment Plan (DRIP) allows for automatic reinvestment of dividends and distributions into additional shares of common stock, unless a stockholder elects to receive cash[13](index=13&type=chunk) - The allocation of dividend distributions between current income, accumulated income, capital gains, and return of capital may differ for GAAP and tax purposes due to varying accounting principles[14](index=14&type=chunk) [Subsequent Events](index=3&type=section&id=Subsequent%20Events) Subsequent to June 30, 2025, Barings BDC made new commitments totaling $59.3 million, with $38.6 million already funded, primarily in first lien senior secured debt with a weighted average yield of 9.4%. Additionally, $22.6 million of previously committed revolvers and delayed draw term loans were funded, and the Company fully repaid its 4.66% Series A senior unsecured notes due August 2025 - Made approximately **$59.3 million** of new commitments subsequent to June 30, 2025, of which **$38.6 million** closed and funded[15](index=15&type=chunk) - The **$38.6 million** funded investments consist of **$28.9 million** of first lien senior secured debt, **$9.4 million** of subordinated debt, and **$0.3 million** of equity investments, with a weighted average yield of **9.4%** for the debt investments[15](index=15&type=chunk) - Funded an additional **$22.6 million** of previously committed revolvers and delayed draw term loans[15](index=15&type=chunk) - On August 4, 2025, the Company repaid in full its **4.66% Series A senior unsecured notes** due August 2025[16](index=16&type=chunk) [Corporate Information and Disclosures](index=3&type=section&id=Corporate%20Information%20and%20Disclosures) This section provides details on the upcoming conference call, important forward-looking statement disclaimers, explanations of non-GAAP financial measures, and background information on Barings BDC and its investment manager, Barings LLC [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Barings BDC has scheduled a conference call for Friday, August 8, 2025, at 9:00 a.m. ET to discuss its second quarter 2025 financial and operating results. Details for live access via dial-in or webcast, along with replay information, are provided - Conference call to discuss Q2 2025 results is scheduled for **Friday, August 8, 2025, at 9:00 a.m. ET**[17](index=17&type=chunk) - Access is available via dial-in (**877-407-8831** or **201-493-6736**) or a live webcast on the investor relations section of Barings BDC's website[18](index=18&type=chunk)[19](index=19&type=chunk) - A taped replay will be available until **August 15, 2025**, via dial-in (**877-660-6853** or **201-612-7415**, conference ID **13750211**) and an archived webcast replay on the Company's website[18](index=18&type=chunk)[19](index=19&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section cautions investors that the report contains forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These statements reflect management's current estimates and should not be unduly relied upon as investment advice. Further risk information is available in the Company's SEC filings - Statements in the report may constitute 'forward-looking statements' relating to future events or Barings BDC's future performance or financial condition[20](index=20&type=chunk) - Investors are cautioned not to place undue reliance on these statements, as they are subject to risks and uncertainties that may cause actual results to differ materially[20](index=20&type=chunk) - More information on risks and potential factors affecting financial results is included in Barings BDC's filings with the SEC, including the 'Risk Factors' and 'Management's Discussion and Analysis' sections of its Form 10-K and 10-Q[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) The Company utilizes non-GAAP financial measures, specifically net debt and net debt-to-equity ratio, to provide additional insights into its leverage and financial condition. These measures are intended to supplement GAAP information and enhance investor analysis but are not substitutes for GAAP results and should be evaluated in conjunction with them. A reconciliation to GAAP is provided - The Company discusses non-GAAP measures such as net debt and net debt-to-equity ratio to supplement GAAP financial information[22](index=22&type=chunk) - These non-GAAP measures are used to monitor and evaluate leverage and financial condition and are believed to enhance investors' ability to analyze trends[22](index=22&type=chunk) - Non-GAAP measures have limitations, are not GAAP alternatives, and should be considered in conjunction with corresponding GAAP measures. A reconciliation is provided in the press release[22](index=22&type=chunk)[23](index=23&type=chunk) [About Barings BDC](index=4&type=section&id=About%20Barings%20BDC) Barings BDC, Inc. is a publicly traded, externally managed business development company (BDC) that primarily invests in senior secured loans of middle-market companies across various industries. Its investment activities are managed by Barings, a global asset manager with over $456 billion in assets under management - Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company treated as a business development company (BDC)[24](index=24&type=chunk) - The Company primarily invests in senior secured loans in middle-market companies across a wide range of industries[24](index=24&type=chunk) - Investment activities are managed by Barings, a global asset manager with over **$456 billion** in AUM[24](index=24&type=chunk) [About Barings LLC](index=4&type=section&id=About%20Barings%20LLC) Barings is a global investment manager with over $456 billion in assets under management, specializing in public and private fixed income, real estate, and specialist equity markets. As a subsidiary of MassMutual, Barings operates globally and is committed to sustainable practices and responsible investment - Barings is a global investment manager with over **$456 billion** in assets under management as of June 30, 2025[25](index=25&type=chunk)[26](index=26&type=chunk) - The firm sources differentiated opportunities and builds long-term portfolios across public and private fixed income, real estate, and specialist equity markets[25](index=25&type=chunk) - Barings is a subsidiary of MassMutual and is committed to sustainable practices and responsible investment[25](index=25&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the Company's consolidated balance sheets, statements of operations, and statements of cash flows, providing a comprehensive view of its financial position, performance, and liquidity for the reported periods [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets provide a snapshot of Barings BDC's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and net assets. Key figures include total investments at fair value, total assets, total liabilities, and the net asset value per share Consolidated Balance Sheet (in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :----------------------------------- | :-------------------------- | :---------------- | | Total investments at fair value | $2,623,882 | $2,449,272 | | Total assets | $2,793,307 | $2,695,660 | | Total liabilities | $1,617,463 | $1,505,306 | | Total net assets | $1,175,844 | $1,190,354 | | Net asset value per share | $11.18 | $11.29 | [Unaudited Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) The unaudited consolidated statements of operations present the Company's financial performance for the three and six months ended June 30, 2025, and June 30, 2024. It details investment income, operating expenses, net investment income, and the impact of realized and unrealized gains/losses on investments, credit support agreements, and currency transactions Unaudited Consolidated Statements of Operations (Three Months Ended June 30, in thousands, except per share data) | Metric | 2025 | 2024 | YoY Change | | :----------------------------------- | :----- | :----- | :--------- | | Total investment income | $74,398 | $74,886 | -0.65% | | Total operating expenses | $43,780 | $32,429 | +35.00% | | Net investment income after taxes | $29,810 | $42,142 | -29.26% | | Net realized gains (losses) | $(15,157) | $8,074 | Shift from gain to loss | | Net unrealized appreciation (depreciation) | $5,906 | $(30,776) | Shift from depreciation to appreciation | | Net increase in net assets resulting from operations | $20,559 | $19,440 | +5.76% | | Net investment income per share | $0.28 | $0.40 | -30.00% | | Total dividends / distributions per share | $0.31 | $0.26 | +19.23% | Unaudited Consolidated Statements of Operations (Six Months Ended June 30, in thousands, except per share data) | Metric | 2025 | 2024 | YoY Change | | :----------------------------------- | :------- | :------- | :--------- | | Total investment income | $138,837 | $144,692 | -4.05% | | Total operating expenses | $81,428 | $72,633 | +12.11% | | Net investment income after taxes | $56,201 | $71,494 | -21.39% | | Net realized gains (losses) | $(16,227) | $(13,379) | -21.29% (larger loss) | | Net unrealized appreciation (depreciation) | $13,161 | $5,326 | +147.11% | | Net increase in net assets resulting from operations | $53,135 | $63,441 | -16.25% | | Net investment income per share | $0.53 | $0.67 | -20.90% | | Total dividends / distributions per share | $0.62 | $0.52 | +19.23% | [Unaudited Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) The unaudited consolidated statements of cash flows detail the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025, and June 30, 2024. For H1 2025, the Company reported net cash used in operating activities and a net decrease in cash and foreign currencies, contrasting with net cash provided by operating activities and an increase in cash in H1 2024 Unaudited Consolidated Statements of Cash Flows (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :----------------------------------- | :------- | :------- | | Net cash provided by (used in) operating activities | $(60,462) | $143,203 | | 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, end of period | $49,261 | $84,363 | [Non-GAAP Financial Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Reconciliations) This section provides a reconciliation of the Company's non-GAAP financial measures, specifically net debt and the net debt-to-equity ratio, to their most directly comparable GAAP measures, offering enhanced transparency into leverage [Reconciliation of Debt to Net Debt and Net Debt-to-Equity Ratio](index=9&type=section&id=Reconciliation%20of%20Debt%20to%20Net%20Debt%20and%20Net%20Debt-to-Equity%20Ratio) This section provides a reconciliation of total debt to net debt and calculates the net debt-to-equity ratio, which are non-GAAP financial measures. The net debt-to-equity ratio increased to 1.29x as of June 30, 2025, from 1.24x as of March 31, 2025, and 1.16x as of December 31, 2024, indicating an increase in leverage Reconciliation of Debt to Net Debt and Net Debt-to-Equity Ratio (in thousands, except ratios) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :------------- | :---------------- | | Total debt (principal) | $1,572,313 | $1,522,268 | $1,463,590 | | Total net debt | $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 | 1.29x | 1.24x | 1.16x | - The net debt-to-equity ratio increased sequentially from **1.16x** at December 31, 2024, to **1.29x** at June 30, 2025[35](index=35&type=chunk)

Financial Data and Key Metrics Changes - The net asset value (NAV) per share remained unchanged at $11.29 compared to the prior quarter, indicating portfolio stability [11][24] - Net investment income for the quarter was $0.25 per share, down from $0.28 per share in the previous quarter [12][26] - The weighted average yield at fair value decreased to 10.1% from 10.4% in the prior quarter, primarily due to reductions in reference rates [13] Business Line Data and Key Metrics Changes - Net originations exceeded $100 million during the first quarter, continuing the uptick in origination activity from the previous quarter [6] - Barings originated positions now constitute 94% of the BBDC portfolio at fair value, up from 76% at the beginning of 2022 [12] - The non-accrual rate was 0.6% at fair value, significantly below industry averages [21] Market Data and Key Metrics Changes - The portfolio consists of 74% secured investments, with approximately 71% being first lien securities [19] - Interest coverage within the portfolio was strong, with a weighted average interest coverage of 2.4 times, above industry averages [20] Company Strategy and Development Direction - The company is focused on middle market investments, emphasizing low leverage levels and attractive risk-adjusted returns [6] - A proposal to terminate the credit support agreement related to the MVC Capital transaction was accepted, with a maximum consideration of $23 million, aimed at simplifying the portfolio [7][31] - The company aims to rotate capital into income-producing investments to enhance core earnings power [8][30] Management's Comments on Operating Environment and Future Outlook - Management anticipates volatility in the market and emphasizes the importance of alignment with the investment advisor [9] - The current macroeconomic landscape is causing a freeze in decision-making among issuers, impacting hiring and capital investments [17][18] - Despite challenges, management remains confident in the portfolio's credit quality and ability to weather economic cycles [19][21] Other Important Information - The board declared a second quarter dividend of $0.26 per share, consistent with the prior quarter, and a special dividend of $0.05, totaling $0.31 per share [28] - The company has approximately $420 million of investable dry powder, providing capacity for future opportunities [27] Q&A Session Summary Question: What is the outlook for the company's portfolio in the current economic environment? - Management expressed confidence in the portfolio's ability to navigate market volatility and highlighted the focus on defensive positioning [19][22] Question: How does the company plan to enhance its earnings power? - The early termination of the credit support agreement is seen as a major step in optimizing the portfolio and enhancing core earnings [30][31] Question: What is the company's strategy regarding capital allocation? - The board is evaluating capital allocation strategies, including share repurchase programs and dividend distributions, to ensure long-term shareholder value [29][28]

Financial Data and Key Metrics Changes - The net asset value (NAV) per share remained unchanged at $11.29 compared to the prior quarter, indicating portfolio stability [11][25] - Net investment income for the quarter was $0.25 per share, a decrease from $0.28 per share in the prior quarter [12][27] - The weighted average yield at fair value decreased to 10.1% from 10.4% in the previous quarter, primarily due to reductions in reference rates [13] Business Line Data and Key Metrics Changes - Net originations exceeded $100 million during the quarter, reflecting strong deployment activity [6] - Barings originated positions now constitute 94% of the BBDC portfolio at fair value, up from 76% at the beginning of 2022 [12] - The non-accrual rate was reported at 0.6% of assets at fair value, significantly below industry averages [22] Market Data and Key Metrics Changes - The portfolio consists of 74% secured investments, with approximately 71% being first lien securities [20] - Interest coverage within the portfolio was strong, with a weighted average interest coverage of 2.4 times, above industry averages [21] Company Strategy and Development Direction - The company is focused on simplifying its portfolio and enhancing core earnings power through the termination of the credit support agreement for $23 million [7][31] - The strategy emphasizes investments in the middle market, which is characterized by low leverage levels and attractive risk-adjusted returns [6][10] - The company aims to rotate its portfolio towards Barings originated income-producing assets to enhance cash income for investors [31] Management's Comments on Operating Environment and Future Outlook - Management anticipates volatility in the market and emphasizes the importance of alignment with the investment advisor [8] - The current macroeconomic landscape is causing a freeze in decision-making among issuers, impacting hiring and capital investments [18] - Despite challenges, management remains confident in the portfolio's credit quality and ability to weather economic cycles [20][22] Other Important Information - The board declared a second quarter dividend of $0.26 per share, consistent with the prior quarter, and a special dividend of $0.05, totaling $0.31 per share [29] - The company has approximately $420 million of investable capital available for future opportunities [28] Q&A Session Summary Question: What is the outlook for the company's portfolio in light of current market conditions? - Management indicated that the portfolio is well-positioned to navigate market volatility and is focused on creating value for shareholders [33] Question: How does the company plan to address potential impacts from tariffs? - Management noted that less than 5% of the portfolio is at high risk from tariffs, and most issuers are in non-tariff impacted industries [15][17]

分组1 - Barings BDC reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.28 per share, and down from $0.28 per share a year ago, representing an earnings surprise of -10.71% [1] - The company posted revenues of $64.44 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 5.24%, and down from $69.81 million year-over-year [2] - Over the last four quarters, Barings BDC has surpassed consensus EPS estimates just once, while it has topped consensus revenue estimates three times [2] 分组2 - Barings BDC shares have lost about 10% since the beginning of the year, compared to the S&P 500's decline of -4.3% [3] - The current consensus EPS estimate for the coming quarter is $0.28 on revenues of $67.38 million, and for the current fiscal year, it is $1.09 on revenues of $268.13 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the bottom 28% of over 250 Zacks industries, indicating potential underperformance compared to the top 50% of ranked industries [8]