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 September 30, 2022 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 ...

Barings BDC, Inc. (NYSE:BBDC) Q2 2022 Earnings Conference Call August 10, 2022 9:00 AM ET Company Participants Eric Lloyd - Chairman & CEO Ian Fowler - President Jonathan Bock - CFO Bryan High - VP Conference Call Participants Kyle Joseph - Jefferies Finian O'Shea - Wells Fargo Securities Casey Alexander - Compass Point Research & Trading Robert Dodd - Raymond James & Associates Operator At this time, I would like to welcome everyone to the Barings BDC, Inc. conference call for the quarter ended June 30, 20 ...

Debt Investments and Yield - As of June 30, 2022, the weighted average yield on the principal amount of outstanding debt investments was approximately 7.6%, up from 7.2% as of December 31, 2021[353] - The weighted average yield on all outstanding debt investments, including non-accrual debt, was approximately 7.2% as of June 30, 2022, compared to 6.9% as of December 31, 2021[353] - The weighted average yield on outstanding debt investments was 7.6% as of June 30, 2022, compared to 7.4% as of June 30, 2021[383] - The weighted average yield of the debt investments made was 8.2%[434] Investment Portfolio and Strategy - The investment portfolio is primarily focused on senior secured private debt investments in established middle-market businesses across various industries[350] - The company has shifted its investment strategy to focus on syndicated senior secured loans and bonds since August 2018[350] - The total value of the investment portfolio increased to $2,389.1 million as of June 30, 2022, from $1,800.6 million as of December 31, 2021, representing a growth of approximately 32.6%[364] - As of June 30, 2022, the company had investments in 294 portfolio companies with an aggregate cost of $2,439.1 million, compared to 212 companies with a cost of $1,787.8 million as of December 31, 2021[364] - Senior debt and 1st lien notes accounted for 65% of the total fair value of the portfolio as of June 30, 2022, with a fair value of $1,550.2 million[365] Financial Performance - Total investment income for the three months ended June 30, 2022, was $55.6 million, a 67.5% increase from $33.2 million in the same period of 2021[382] - Total operating expenses for the three months ended June 30, 2022, were $23.8 million, up 28.5% from $18.6 million in the same period of 2021[385] - Net investment income before taxes for the three months ended June 30, 2022, was $31.8 million, compared to $14.6 million for the same period in 2021, representing a 117.6% increase[382] - The outstanding debt investments increased to $2,162.5 million as of June 30, 2022, from $1,463.6 million as of June 30, 2021, reflecting a 47.8% growth[383] - Dividends from portfolio companies for the three months ended June 30, 2022, were $7.2 million, significantly higher than $0.4 million in the same period of 2021[383] Losses and Depreciation - The company recognized a net realized loss of $6.1 million from the sale of $101.7 million of loans during the same period[366] - The company recognized net realized losses totaling $10.2 million, primarily from a net loss on the loan portfolio of $6.7 million and foreign currency transactions of $2.7 million[391] - During the six months ended June 30, 2022, the company recorded net unrealized depreciation of $41.2 million, driven mainly by the impact of foreign currency exchange rates on investments of $29.2 million and broad market moves of $55.4 million[395] - The net unrealized depreciation on the current portfolio for the three months ended June 30, 2022, was $62.7 million, primarily due to credit performance issues and foreign currency impacts[394] Cash and Borrowings - As of June 30, 2022, the company had $197.8 million in cash and foreign currencies on hand, with a net increase in cash of $113.5 million for the six months ended June 30, 2022[399] - The February 2019 Credit Facility was increased to $1.1 billion as of April 1, 2022, allowing for total commitments to reach $1.5 billion subject to certain conditions[401] - As of June 30, 2022, the company had U.S. dollar borrowings of $537.5 million outstanding under the February 2019 Credit Facility with an interest rate of 3.198%[404] - The company had net cash provided from financing activities of $126.2 million for the six months ended June 30, 2022, primarily from net borrowings under the February 2019 Credit Facility[399] Shareholder Returns and Distributions - The company declared a quarterly distribution of $0.24 per share on August 9, 2022, payable on September 14, 2022, to stockholders of record as of September 7, 2022[434] - The company has adopted a dividend reinvestment plan (DRIP) allowing stockholders to reinvest dividends in shares of common stock unless they opt for cash[429] - The company must distribute at least 90% of its investment company taxable income (ICTI) annually to maintain its tax treatment as a RIC[431] - The company monitors its distribution requirements to ensure compliance with the Code and has historically met its minimum distribution requirements[430] Interest Rate Risk - The company has no interest rate hedging arrangements as of June 30, 2022, exposing it to interest rate volatility risks[468] - The transition from LIBOR to SOFR or other benchmark rates presents uncertainties that could affect the cost of capital and net investment income[470] - The company’s net investment income is sensitive to the difference between borrowing rates and investment rates, with rising interest rates potentially increasing costs[475] - A hypothetical 200 basis point increase or decrease in interest rates on variable-rate debt investments could impact investment income by a maximum of $38.4 million annually[472] Fee Income - Recurring fee income for the three months ended June 30, 2022, was $2,122,000, compared to $1,711,000 for the same period in 2021, representing a 24% increase[453] - Total fee income for the six months ended June 30, 2022, was $6,268,000, up from $4,701,000 in the same period of 2021, indicating a 33% growth[453] - Non-recurring fee income for the three months ended June 30, 2022, was $2,950,000, significantly higher than $857,000 in the same period of 2021, reflecting a 244% increase[453] - The company reported a total of $5,072,000 in fee income for the three months ended June 30, 2022, compared to $2,568,000 in the same period of 2021, indicating a 97% increase[453]

Barings BDC, Inc. (NYSE:BBDC) Q1 2022 Results Conference Call May 6, 2022 9:00 AM ET Company Participants Eric Lloyd - CEO Ian Fowler - President and Co-Head of Global Private Finance Bryan High - Head, U.S. Special Situations and Co-Portfolio Manager Jonathan Bock - CFO Conference Call Participants Casey Alexander - Compass Point Paul Johnson - KBW Robert Dodd - Raymond James Operator At this time, I would like to welcome everyone to Barings BDC, Inc. Conference Call for the quarter and year ending March 3 ...

Barings BDC, Inc. (NYSE:BBDC) Q4 2021 Results Conference Call February 24, 2022 9:00 AM ET Company Participants Eric Lloyd - Chief Executive Officer Ian Fowler - President and Co-Head of Global Private Finance Bryan High - Head of U.S. Special Situations and Co-Portfolio Manager Jonathan Bock - Chief Financial Officer Conference Call Participants Ryan Lynch - KBW Robert Dodd - Raymond James Operator Greetings. At this time, I would like to welcome everyone to the Barings BDC, Inc. Conference Call for the Qu ...

Management Fees - The Base Management Fee for the period from January 1, 2021, is calculated at an annual rate of 1.25% based on gross assets, excluding cash and cash equivalents [94]. - The Base Management Fee for the period from January 1, 2020, to December 31, 2020, was calculated at an annual rate of 1.375% [93]. - The Pre-2021 Income-Based Fee was calculated based on Pre-Incentive Fee Net Investment Income for the preceding calendar quarter, with a hurdle rate of 2% per quarter (8% annualized) [98]. - For the Post-2019 Period, no Pre-2021 Income-Based Fee was payable if the Pre-Incentive Fee Net Investment Income did not exceed the hurdle rate [100]. - The Pre-2021 Capital Gains Fee was calculated as 20% of the positive difference between cumulative realized capital gains and cumulative capital losses, starting from the year ended December 31, 2018 [105]. - Beginning January 1, 2021, the Incentive Fee consists of an Income-Based Fee and a Capital Gains Fee, each calculated independently [106]. - The Income-Based Fee is determined quarterly based on the aggregate Pre-Incentive Fee Net Investment Income exceeding a Hurdle Amount calculated at 2% (8% annualized) of net asset value [107]. - The Income-Based Fee includes a Catch-Up Amount, which is 2.5% (10% annualized) of net asset value for the Trailing Twelve Quarters [107]. - The Incentive Fee Cap limits the Income-Based Fee to 20% of the Cumulative Pre-Incentive Fee Net Return during the relevant Trailing Twelve Quarters [111]. - The Capital Gains Fee is calculated annually as 20% of the positive difference between cumulative realized capital gains and cumulative capital losses, starting from the year ended December 31, 2018 [113]. - If the Incentive Fee Cap is zero or negative, no Income-Based Fee is payable for that quarter [111]. - The Pre-Incentive Fee Net Investment Income does not include realized capital gains or losses, or unrealized appreciation or depreciation [106]. Company Operations and Structure - Barings manages the day-to-day operations and investment advisory services for the company under the Amended and Restated Advisory Agreement [89]. - The company does not currently have any employees; services are provided by employees of Barings [85]. - The company has elected to be regulated as a Business Development Company (BDC) under the 1940 Act, which impacts its operations significantly [124]. - The company intends to distribute substantially all of its income to stockholders, only paying taxes on the portion of taxable income not distributed [126]. - The company is required to maintain a coverage ratio of total assets to total senior securities of at least 150% due to its BDC status [128]. - The company reports investments at market value or fair value, with changes in value reflected in its consolidated statements of operations [124]. - The company has wholly-owned taxable subsidiaries to hold certain portfolio investments, helping to preserve its RIC status and tax advantages [126]. - The company must comply with the provisions of the 1940 Act, including having a majority of directors who are not "interested persons" [129]. - The company is limited in its ability to use leverage for financing its portfolio of investments due to regulatory requirements [128]. - The company is required to meet minimum distribution requirements to avoid incurring significant corporate-level U.S. federal income taxes [126]. - The company may not acquire assets other than qualifying assets unless qualifying assets represent at least 70% of total assets [133]. - The company must obtain exemptive relief from the SEC to co-invest with Barings or its affiliates [130]. - The company has reduced its asset coverage requirement from 200% to 150% following stockholder approval, allowing for more flexibility in issuing senior securities [140]. - The company must distribute at least 90% of its investment company taxable income (ICTI) to qualify for RIC tax treatment, which has been in effect since December 31, 2007 [158]. - The company is subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income unless specific distribution requirements are met [159]. - At least 50% of the company's assets must consist of cash, cash equivalents, U.S. Government securities, and other qualifying securities to meet diversification requirements [160]. - The company may not invest more than 25% of its total assets in securities of a single issuer to maintain compliance with the Diversification Tests [160]. - The company provides significant managerial assistance to portfolio companies, which may include fees for these services [137]. - Temporary investments may include cash, cash equivalents, and U.S. government securities to ensure 70% of assets are qualifying [139]. - The company is required to maintain a bond issued by a reputable fidelity insurance company to protect against larceny and embezzlement [148]. - The company has adopted a Global Code of Ethics Policy and corporate governance guidelines applicable to its directors and employees [141]. - The company is periodically examined by the SEC for compliance with the 1940 Act [147]. Tax and Regulatory Compliance - The company may need to recognize taxable income without receiving corresponding cash payments, such as original issue discounts on debt obligations [163]. - The company anticipates that a portion of its income may consist of original issue discounts or other income required to be included in taxable income prior to cash receipt [163]. - The company may face challenges in meeting the Annual Distribution Requirement necessary to maintain RIC tax treatment, potentially leading to corporate-level income tax [164]. - If the company fails to satisfy the Annual Distribution Requirement, it may be subject to a 4.0% U.S. federal excise tax [164]. - Failure to qualify for RIC tax treatment could result in corporate-level taxation on all taxable income, reducing the amount available for distribution to stockholders [177]. - The company may distribute taxable dividends payable in cash or shares, which could lead to tax implications for stockholders [175]. - Legislative changes could affect the U.S. federal income tax treatment of investments in the company's stock, impacting stockholders [180]. - The company’s distributions are generally treated as dividends for U.S. tax purposes and may be subject to U.S. income or withholding tax [181]. - State and local tax treatment may differ from U.S. federal income tax treatment, requiring stockholders to consult their tax advisors [183]. Financial Position and Market Risks - As of December 31, 2021, approximately $1,307.5 million of the debt portfolio investments bore interest at variable rates, primarily LIBOR-based [558]. - A hypothetical 200 basis point increase or decrease in interest rates on variable-rate debt investments could impact investment income by a maximum of $26.2 million annually [558]. - The February 2019 Credit Facility's borrowings could see a maximum annual interest expense change of $13.1 million with a 200 basis point interest rate shift [559]. - As of December 31, 2021, the company had borrowings in Swedish kronas of 12.8 million kr ($1.4 million), British pounds of £68.3 million ($92.5 million), Australian dollars of A$36.6 million ($26.6 million), and Euros of €138.6 million ($157.6 million) [564]. - The balance of unused commitments to extend financing as of December 31, 2021, included various delayed draw term loans and revolvers totaling over $20 million across multiple companies [566]. - The company is exposed to market risks including interest rate fluctuations, which can affect net interest income and investment portfolio value [553]. - The transition from LIBOR to alternative rates like SOFR presents uncertainties that could impact the cost of capital and net investment income [560]. - The company’s net investment income is sensitive to the difference between borrowing rates and investment rates, with rising interest rates potentially reducing net investment income [563]. - As of December 31, 2021, the company was not a party to any interest rate hedging arrangements, indicating potential exposure to interest rate volatility [556]. - The company’s risk management systems are designed to monitor and mitigate exposure to interest rate risks, but no hedging transactions were in place as of the reporting date [556]. - Total unused commitments to extend financing amount to $234,657.5 million [570]. - New commitments made after December 31, 2021, totaled approximately $126.3 million, with $104.8 million closed and funded [573]. - The $104.8 million of investments included $75.8 million in first lien senior secured debt investments and $28.9 million in equity and joint venture investments [573]. - The weighted average yield of the debt investments was 6.3% [573]. - As of December 31, 2021, guaranteed obligations related to MVC Automotive Group Gmbh amounted to €9.9 million ($11.3 million) for credit facilities [571]. - A cash collateralization of $3.5 million for a letter of credit for Security Holdings B.V. was agreed upon as of December 31, 2020 [572]. - The quarterly distribution declared on February 1, 2022, was $0.23 per share, payable on February 23, 2022 [573]. - The total amount of delayed draw term loans across various portfolio companies includes significant figures such as $6,018.0 million for Command Alkon and $12,457.6 million for EMI Porta Holdco LLC [568][570]. - The company has made substantial investments in various sectors, including $4,539.7 million for Truck-Lite Co., LLC and $2,811.0 million for The Caprock Group, Inc. [570]. - The company has commitments in multiple currencies, with amounts translated into U.S. dollars based on the spot rate at the relevant balance sheet date [570].