Investment Portfolio - As of June 30, 2025, the total value of the investment portfolio was $2,623.9 million, an increase from $2,449.3 million as of December 31, 2024[417]. - The company had investments in 332 portfolio companies with an aggregate cost of $2,635.8 million as of June 30, 2025, compared to 328 portfolio companies with an aggregate cost of $2,522.7 million as of December 31, 2024[417]. - As of June 30, 2025, the total fair value of the investment portfolio was $2,623.9 million, with senior debt and first lien notes comprising 71% of the portfolio[418]. - The total cost of the investment portfolio as of June 30, 2025, was $2,635.8 million, with senior debt and first lien notes valued at $1,875.4 million[418]. - The company made new commitments of approximately $59.3 million, with $38.6 million closed and funded, including $28.9 million in first lien senior secured debt investments[501]. - As of June 30, 2025, the investment portfolio was valued at approximately 223% of total net assets, up from 206% as of December 31, 2024[505]. Investment Performance - The weighted average yield on the principal amount of outstanding debt investments, excluding non-accrual debt investments, was approximately 9.8% as of June 30, 2025, down from 10.2% as of December 31, 2024[411]. - The weighted average yield of the debt investments was 9.4%[501]. - Total investment income for the three months ended June 30, 2025, was $74.398 million, a slight decrease from $74.886 million for the same period in 2024[436]. - Net investment income after taxes for the three months ended June 30, 2025, was $29.810 million, down from $42.142 million in the same period of 2024[436]. - Total operating expenses for the three months ended June 30, 2025, increased to $43.780 million from $32.429 million in the same period of 2024[440]. - Dividends from portfolio companies for the three months ended June 30, 2025, were $14.593 million, up from $11.734 million in the same period of 2024[438]. Debt and Financing - Senior secured, middle-market, first lien private debt investments generally bear interest between SOFR plus 450 basis points and SOFR plus 650 basis points per annum[410]. - Subordinated middle-market, private debt investments generally bear interest between SOFR plus 700 basis points and SOFR plus 900 basis points per annum if floating rate, and between 8% and 15% if fixed rate[410]. - As of June 30, 2025, the company had U.S. dollar borrowings of $342.5 million outstanding under the February 2019 Credit Facility, with a weighted average interest rate of 6.286%[461]. - The fair value of the borrowings outstanding under the February 2019 Credit Facility was $547.3 million as of June 30, 2025[462]. - The company entered into a Note Purchase Agreement for the February Notes, totaling $150.0 million, with fixed interest rates of 3.41% and 4.06%[474]. - The company has U.S. dollar borrowings of $342.5 million at an interest rate of 6.286%, with additional borrowings in British pounds and Euros[544]. Cash Flow and Liquidity - As of June 30, 2025, the company had $49.3 million in cash and foreign currencies on hand, including $4.7 million of restricted cash[456]. - The company experienced a net decrease in cash of $42.1 million for the six months ended June 30, 2025, with operating activities using $60.5 million in cash[456]. - Financing activities provided net cash of $18.4 million, consisting of net borrowings of $86.0 million under the February 2019 Credit Facility[456]. - For the six months ended June 30, 2024, the company experienced a net increase in cash of $13.8 million, with operating activities providing $143.2 million in cash[457]. Investment Losses and Gains - The company recognized a net realized loss of $27.9 million from 24 loan repayments totaling $125.2 million during the first half of 2025[419]. - Net realized losses totaled $15.2 million for the three months ended June 30, 2025, primarily due to a $14.3 million loss on forward currency contracts and an $11.1 million loss on the investment portfolio[447]. - During the six months ended June 30, 2025, net realized losses amounted to $16.2 million, with a predominant loss of $28.8 million on the investment portfolio[447]. - The company reported a net realized gain of $2.5 million from the exit of a royalty rights investment during the first half of 2025[419]. Risk Management - The company employs risk management systems to monitor interest rate risk and may use hedging instruments like interest rate swaps to mitigate exposure[539]. - The company’s net investment income is sensitive to fluctuations in various interest rates, including SOFR and EURIBOR[539]. - Interest rate risk management includes regular measurement of exposure and potential hedging transactions to protect against adverse fluctuations[539]. - The company may experience exposure to foreign currency fluctuations related to certain investments, which are financed through local currency borrowings[544]. Shareholder Returns - The company intends to pay quarterly distributions to stockholders and has adopted a dividend reinvestment plan (DRIP)[496]. - A quarterly distribution of $0.26 per share was declared, payable on September 10, 2025[502]. - The company has authorized a new 12-month share repurchase program allowing for up to $30.0 million in repurchases[495]. - During the six months ended June 30, 2025, the company repurchased a total of 250,000 shares of common stock at an average price of $9.35 per share[495]. Valuation and Fair Value - The fair value of investments is determined using Level 3 inputs when market quotations are not readily available[508]. - The company utilizes independent valuation providers for loans and equity investments without readily determinable fair values[515]. - Loan origination fees are recorded as deferred income and recognized over the term of the loan, impacting reported investment income[523].

[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]

Financial Performance - Barings BDC's net asset value (NAV) per share remained flat at $11.29 as of March 31, 2025, compared to December 31, 2024[22] - The company declared a second quarter 2025 regular dividend of $0.26 per share, along with a previously declared special dividend of $0.05 per share[22] - Net investment income for the quarter ended March 31, 2025, was $0.25 per share[22] - Total investment income for 1Q 2025 was $64.4 million[24] Portfolio Composition and Activity - Total originations during the quarter were $207 million, while sales and repayments totaled $106 million, resulting in net originations of $101 million[22] - The weighted-average portfolio yield as of March 31, 2025, was 10.1%[22] - As of March 31, 2025, non-accrual investments represented 0.6% of the total portfolio at fair value[22] - Secured debt accounted for 74% of the portfolio, with 89% being floating rate[27] - First lien investments represent 71% of the portfolio[27] - The top 10 issuers account for 23% of the investment portfolio[30] Credit Support Agreements - Barings LLC will make a $23 million payment by June 30, 2025, related to the MVC CSA termination, equating to a $0.04/share increase in NAV compared to December 2024 valuation[52]

Investment Portfolio - As of March 31, 2025, the total value of the investment portfolio was $2,571.2 million, an increase from $2,449.3 million as of December 31, 2024[407]. - The company had investments in 329 portfolio companies with an aggregate cost of $2,610.7 million as of March 31, 2025, compared to 328 companies and $2,522.7 million as of December 31, 2024[407]. - The fair value of senior debt and 1 lien notes increased to $1,819,640,000, representing 71% of the total portfolio as of March 31, 2025, up from 69% as of December 31, 2024[408]. - The fair value of equity shares increased to $434,144,000, representing 17% of the total portfolio as of March 31, 2025[408]. - The aggregate fair value of non-accrual assets was $14.5 million as of March 31, 2025, representing 0.6% of the total fair value of the portfolio[416]. - The company had nine portfolio companies on non-accrual status as of March 31, 2025, compared to eight companies as of December 31, 2024[416]. - The total cost of non-accrual assets was $47.6 million, comprising 1.8% of the total cost of the portfolio as of March 31, 2025[416]. Financial Performance - Total investment income for the three months ended March 31, 2025, was $64.4 million, a decrease from $69.8 million for the same period in 2024[428]. - Total operating expenses for the three months ended March 31, 2025, were $37.6 million, down from $40.2 million in the same period in 2024[430]. - For the three months ended March 31, 2025, the company recognized net realized losses totaling $1.1 million, primarily due to a net loss on the investment portfolio of $17.7 million, offset by gains from forward currency contracts of $15.2 million and foreign currency transactions of $1.4 million[437]. - The net loss on the investment portfolio for the three months ended March 31, 2025, included a $9.8 million loss from two loan investments and a $7.3 million loss from one equity investment[437]. - The company recorded net unrealized appreciation of $7.3 million for the three months ended March 31, 2025, driven by a $17.0 million appreciation in the current portfolio, partially offset by $22.3 million in unrealized depreciation from forward currency contracts[441]. Debt and Borrowings - The company had U.S. dollar borrowings of $303.0 million under the February 2019 Credit Facility, with a weighted average interest rate of 6.347%[450]. - The total fair value of borrowings outstanding under the February 2019 Credit Facility was $497.3 million as of March 31, 2025[451]. - The company issued $50.0 million in Series A senior unsecured notes due August 2025, with a fixed interest rate of 4.66% per year[452]. - The November 2020 NPA included $62.5 million in Series B Notes and $112.5 million in Series C Notes, with fixed interest rates of 4.25% and 4.75% respectively[457]. - The February 2021 NPA included $80.0 million in Series D Notes and $70.0 million in Series E Notes, with fixed interest rates of 3.41% and 4.06% respectively[462]. - The November 2026 Notes had an aggregate principal amount of $350.0 million and a fixed interest rate of 3.300%[469]. - The February 2029 Notes had an aggregate principal amount of $300.0 million and a fixed interest rate of 7.000%[475]. Investment Income and Fees - Total Fee and Other Income for the three months ended March 31, 2025, was $3,573,000, compared to $3,474,000 for the same period in 2024, representing an increase of 2.9%[512]. - PIK interest income for the three months ended March 31, 2025, was $4,318,000, up from $3,124,000 in 2024, reflecting a growth of 38.3%[515]. - Total PIK income for the three months ended March 31, 2025, was $7,467,000, compared to $6,101,000 in 2024, marking a rise of 22.4%[515]. - The company reported total recurring fee and other income of $2,485,000 for Q1 2025, an increase from $2,130,000 in Q1 2024, which is a growth of 16.7%[512]. Risk Management - The company is subject to market risks including interest rate fluctuations, which can affect net interest income and investment portfolio value[525]. - Interest rate risk management systems are in place to monitor and mitigate exposure to changes in interest rates[526]. - A hypothetical increase of 300 basis points in interest rates would result in an increase of $59,458 thousand in interest income and a net income of $35,540 thousand[531]. Shareholder Actions - On May 8, 2025, the Board declared a quarterly distribution of $0.26 per share, payable on June 11, 2025[489]. - The company authorized a new share repurchase program allowing for the repurchase of up to $30.0 million in common stock, effective from March 1, 2025[482]. - During the three months ended March 31, 2025, the company repurchased 150,000 shares at an average price of $9.67 per share[482]. Management and Advisory - Barings, the investment adviser, manages the investment portfolio and oversees administrative services necessary for operations[395][396]. - Barings' Global Private Finance Group manages day-to-day operations and provides investment advisory services, with a total of $353.3 billion in assets under management as of March 31, 2025[402]. - The company has applied for new exemptive relief from the SEC to allow for negotiated co-investment transactions alongside Barings' affiliated funds[398].

Exhibit 99.1 BARINGS BDC, INC. REPORTS FIRST QUARTER 2025 RESULTS AND ANNOUNCES QUARTERLY CASH DIVIDEND OF $0.26 PER SHARE CHARLOTTE, N.C., May 8, 2025 - Barings BDC, Inc. (NYSE: BBDC) ("Barings BDC" or the "Company") today reported its financial and operating results for the first 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 | | | --- | --- | --- | --- | --- | ...

Group 1 - Barings BDC (BBDC) experienced a significant sell-off, dropping from over $10 per share to the $8-$9 range due to President Trump's tariffs, reflecting a broader decline in the BDC sector [1] - The article emphasizes the importance of dividend investing as a pathway to financial freedom, highlighting its accessibility and potential for long-term wealth accumulation [1] - The author has extensive experience in M&A and business valuation, focusing on sectors such as tech, real estate, software, finance, and consumer staples, which are also the core of their investment portfolio [1]

Financial Data and Key Metrics Changes - The net asset value (NAV) per share was $11.29, a slight decrease of 0.2% from the previous quarter and an increase of 0.1% year-over-year [33] - Net investment income for the quarter was $0.28 per share, exceeding the dividend of $0.26 per share by $0.02, or 8% [34] - The weighted average yield at fair value was 10.4%, with a net leverage ratio of 1.16 times, slightly up from 1.09 in the previous quarter [18][38] Business Line Data and Key Metrics Changes - BBDC deployed $298 million of capital in the quarter, with net sales and deployment of $76 million, marking one of the most active deployment quarters in recent history [22] - The non-accrual rate declined from 50 basis points in September to 30 basis points as of December, with total non-accruals at 0.3% on a fair value basis [17][29] - The portfolio composition remains highly diversified, with 72% consisting of secured investments and approximately 69% being first lien securities [26] Market Data and Key Metrics Changes - Lending activity was muted in the first three quarters of 2024, but there was a meaningful uptick in deployment during the fourth quarter [7] - Economic data appears overwhelmingly positive, with credit fundamentals such as cash flows, revenue growth, and margins exhibiting positive trends [12] Company Strategy and Development Direction - The company continues to focus on the core of the middle market, reflecting lower leverage levels and more attractive risk-adjusted returns [8] - The strategy includes simplifying the portfolio and selectively investing in compelling middle-market direct lending opportunities [22] - The company remains cautious about the pace of new buyout opportunities due to regulatory and trade uncertainties [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, noting that while the economic indicators are positive, regulatory uncertainties have created a pause in private market activities [12][13] - The company anticipates continued strength in portfolio performance, with a focus on credit quality and underwriting [20][29] Other Important Information - The board declared a fourth-quarter dividend of $0.26 per share and special dividends totaling $0.15 per share, equating to an 11% yield based on NAV [19][41] - The company repurchased over 650,000 shares in 2024 and authorized a new $30 million share repurchase plan for 2025 [42] Q&A Session Summary Question: Can you outline the spirit of a PIK non-accrual and how it compares to regular definitions? - Management explained that a PIK non-accrual indicates that while cash payments are being made, the full value including PIK may not be recoverable [46][50] Question: How much of the CSA marks were interest rate or timing related versus fundamental? - The majority of the change was associated with the valuation of Black Angus Steakhouse, with some impacts from interest rate and timing [52] Question: What are the expectations for portfolio rotation in 2025? - Management indicated a focus on rotating out non-Barings names and maximizing value from income-producing assets, while remaining cautious about market timing [58] Question: How much of the portfolio is exposed to regulatory uncertainty? - Preliminary indications suggest that 60% to 75% of the portfolio will be unimpacted by regulatory uncertainty, with ongoing monitoring of the most impacted issuers [63] Question: Will fee and other income be flat to down in 2025? - Management expects fee income to be flat, with potential for amendment fees to offset any losses from OID acceleration [70][72] Question: Was there a one-time deal that contributed to higher fee income in Q4? - Yes, there was a transaction with a substantive fee component that created an outlier dynamic for the fourth quarter [74]