Financial Performance - Barings BDC's net asset value (NAV) decreased to $11.25 per share as of September 30, 2023, compared to $11.34 as of June 30, 2023[12] - The company's net investment income for the third quarter of 2023 was $0.31 per share[12] - A fourth quarter dividend of $0.26 per share was approved, matching the third quarter dividend[12] - Total investment income was $70.8 million for 3Q 2023, compared to $75.3 million for 2Q 2023[13] - Net investment income after taxes was $33.309 million for 3Q 2023, compared to $33.624 million for 2Q 2023[40] Portfolio & Investment Activity - Total originations during the quarter were $138 million, while sales and repayments totaled $104 million, resulting in net deployments of $34 million[12] - The weighted-average portfolio yield as of September 30, 2023, was 11.2%[12] - The investment portfolio's fair value was $2,521.6 million as of 3Q 2023[13] - Non-accruals represented 1.6% of the total portfolio at fair value[12] - Sponsored and Non-Sponsored corporate issuers accounted for 83% of the BBDC portfolio as of September 30, 2023[20] Debt & Leverage - Total debt outstanding (principal) was $1,521.1 million as of 3Q 2023[13] - The debt-to-equity ratio was 1.27x, and the net debt-to-equity ratio was 1.18x as of September 30, 2023[13]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the company's unaudited consolidated financial statements for the period ended September 30, 2023, covering key financial positions and performance [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$2.74 billion** and net assets to **$1.20 billion** as of September 30, 2023, with NAV per share rising to **$11.25** Consolidated Balance Sheet Summary (in thousands) | Metric | September 30, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | Total investments at fair value | $2,521,635 | $2,448,935 | | Total assets | $2,741,710 | $2,709,957 | | Total liabilities | $1,543,486 | $1,517,628 | | Total net assets | $1,198,224 | $1,192,329 | | Net asset value per share | $11.25 | $11.05 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total investment income rose to **$70.8 million** in Q3 2023, driving net investment income to **$33.3 million** (**$0.31 per share**) Statements of Operations Summary (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Total investment income | $70,846 | $56,306 | $213,352 | $155,656 | | Total operating expenses | $37,125 | $28,394 | $118,113 | $76,955 | | Net investment income after taxes | $33,309 | $27,912 | $94,432 | $78,695 | | Net increase in net assets from operations | $18,321 | $9,893 | $98,089 | $5,932 | | Net investment income per share | $0.31 | $0.26 | $0.88 | $0.78 | | Net increase in net assets per share | $0.17 | $0.09 | $0.91 | $0.06 | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased to **$1.20 billion**, driven by **$98.1 million** in net income, offset by distributions and share repurchases - For the nine months ended September 30, 2023, net assets increased by **$5.9 million**, resulting from **$98.1 million** in net income from operations, offset by **$81.3 million** in distributions and **$10.9 million** in share repurchases[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased by **$89.7 million** due to operating activities and financing activities, including investment purchases and dividends Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(62,060) | $109,681 | | Net cash (used in) financing activities | $(27,597) | $(56,611) | | Net (decrease) increase in cash | $(89,657) | $53,070 | | Cash and foreign currencies, end of period | $49,758 | $137,323 | [Consolidated Schedule of Investments](index=9&type=section&id=Consolidated%20Schedule%20of%20Investments) Portfolio fair value reached **$2.52 billion** across 335 companies, with **67%** in senior secured debt, categorized by control status Portfolio Composition by Investment Type (Fair Value, in thousands) | Investment Type | September 30, 2023 | % of Total | December 31, 2022 | % of Total | | :--- | :--- | :--- | :--- | :--- | | 1st Senior debt and 1st lien notes | $1,700,689 | 67% | $1,696,192 | 69% | | Subordinated debt and 2nd lien notes | $257,633 | 10% | $263,139 | 11% | | Structured products | $89,731 | 4% | $73,550 | 3% | | Equity shares | $355,690 | 14% | $284,570 | 12% | | Equity warrants | $1,246 | 0% | $1,057 | 0% | | Investment in joint ventures / PE fund | $116,646 | 5% | $130,427 | 5% | | **Total** | **$2,521,635** | **100%** | **$2,448,935** | **100%** | Portfolio Breakdown by Control Status (Fair Value, in thousands) | Investment Category | September 30, 2023 | % of Total | | :--- | :--- | :--- | | Non–Control / Non–Affiliate Investments | $2,044,426 | 81.1% | | Affiliate Investments | $382,346 | 15.2% | | Control Investments | $94,863 | 3.7% | | **Total Investments** | **$2,521,635** | **100.0%** | [Notes to Unaudited Consolidated Financial Statements](index=70&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section details accounting policies, investment valuation, borrowings, and the financial impact of the Sierra Merger [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=115&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses business overview, portfolio, investment activity, and financial results, including liquidity and critical accounting policies [Overview of Our Business](index=115&type=section&id=Overview%20of%20Our%20Business) Barings BDC invests in **senior secured private debt**, with a **weighted average yield** of **10.1%** on its debt portfolio - The company's investment focus is on **senior secured private debt** in well-established middle-market businesses, leveraging Barings' co-investment exemptive relief[431](index=431&type=chunk) - The **weighted average yield** on all outstanding debt investments increased to **10.1%** as of September 30, 2023, from **9.1%** as of December 31, 2022[434](index=434&type=chunk) [Portfolio Composition and Investment Activity](index=118&type=section&id=Portfolio%20Composition%20and%20Investment%20Activity) Portfolio fair value reached **$2.52 billion**, with **$346.0 million** in new investments and **1.6%** on **non-accrual status** - During the nine months ended September 30, 2023, the company made **$346.0 million** in total investments, including **25 new investments** totaling **$156.8 million**[447](index=447&type=chunk) - As of September 30, 2023, investments in **seven portfolio companies** were on **non-accrual status**, representing **1.6%** of the portfolio's total fair value (**$40.1 million**)[450](index=450&type=chunk) [Results of Operations](index=121&type=section&id=Results%20of%20Operations) Q3 2023 saw increased investment income and net investment income, with a reversal to net unrealized appreciation Investment Income Comparison (in thousands) | Income Source | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Total interest income | $55,405 | $40,639 | $162,719 | $113,492 | | Total dividend income | $8,515 | $7,905 | $26,639 | $22,844 | | Total fee and other income | $2,650 | $4,321 | $10,250 | $10,589 | | **Total investment income** | **$70,846** | **$56,306** | **$213,352** | **$155,656** | Operating Expenses Comparison (in thousands) | Expense Category | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Interest and other financing fees | $21,829 | $15,341 | $61,956 | $40,170 | | Base management fees | $8,315 | $8,267 | $24,302 | $21,520 | | Incentive management fees | $4,618 | $1,825 | $24,309 | $6,579 | | General and administrative expenses | $2,363 | $2,961 | $7,546 | $8,686 | | **Total operating expenses** | **$37,125** | **$28,394** | **$118,113** | **$76,955** | - The increase in interest expense was primarily due to a higher weighted average interest rate on the February 2019 Credit Facility, which rose to **7.1%** as of Sep 30, 2023, from **4.1%** as of Sep 30, 2022[461](index=461&type=chunk) - For the nine months ended Sep 30, 2023, the company recognized a net realized loss of **$75.5 million**, primarily from a **$62.1 million** loss on its investment portfolio and a **$17.1 million** loss on forward currency contracts[465](index=465&type=chunk) [Liquidity and Capital Resources](index=125&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is from cash and borrowing capacity, with **$1.52 billion** in debt outstanding and active share repurchases - As of September 30, 2023, the company had **$796.1 million** outstanding under its **$1.1 billion** senior secured credit facility, which matures in February 2026[343](index=343&type=chunk)[344](index=344&type=chunk) - The company has **$725.0 million** in aggregate principal of senior unsecured notes with maturities ranging from 2025 to 2028[343](index=343&type=chunk) - Under its current share repurchase program, the company repurchased **1.4 million shares** for an average price of **$7.75 per share** during the nine months ended September 30, 2023[506](index=506&type=chunk) - On November 9, 2023, the Board declared a quarterly distribution of **$0.26 per share**[512](index=512&type=chunk) [Critical Accounting Policies and Use of Estimates](index=130&type=section&id=Critical%20Accounting%20Policies%20and%20Use%20of%20Estimates) **Investment valuation** and **revenue recognition** are critical policies, with **Level 3 investments** comprising **$2.24 billion** of investments - The company's most critical accounting policies are **investment valuation** and **revenue recognition**[513](index=513&type=chunk) - As of September 30, 2023, **Level 3 investments**, valued using significant unobservable inputs, constituted **$2.24 billion** of the **$2.40 billion** of investments subject to leveling[301](index=301&type=chunk) - The fair value of investments in joint ventures like Jocassee and Thompson Rivers is estimated using the **Net Asset Value (NAV)** of each entity as a practical expedient[530](index=530&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=139&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate and foreign currency risks, with a **100 basis point** rate increase impacting net income by **$11.5 million** - As of September 30, 2023, approximately **$1.94 billion** of the company's debt portfolio consisted of **variable-rate investments**, primarily based on SOFR or equivalent rates[556](index=556&type=chunk) Interest Rate Sensitivity Analysis (Annual Impact, in thousands) | Basis Point Change | Impact on Interest Income | Impact on Interest Expense | Impact on Net Income | | :--- | :--- | :--- | :--- | | Up 100 basis points | $19,439 | $7,961 | $11,478 | | Down 50 basis points | $(9,719) | $(3,981) | $(5,738) | - The company mitigates foreign currency risk by borrowing in **local currencies**, including Swedish krona, British pounds sterling, and Euros, under its credit facility[559](index=559&type=chunk) [Item 4. Controls and Procedures](index=141&type=section&id=Item%204.%20Controls%20and%20Procedures) **Disclosure controls and procedures were effective** as of September 30, 2023, with **no material changes** to internal control over financial reporting - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of September 30, 2023[560](index=560&type=chunk) - **No material changes** to internal control over financial reporting occurred during the third quarter of 2023[561](index=561&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=142&type=section&id=Item%201.%20Legal%20Proceedings) The company is **not currently subject to any material pending legal proceedings** outside of routine litigation - The company is **not currently subject to any material pending legal proceedings**[564](index=564&type=chunk) [Item 1A. Risk Factors](index=142&type=section&id=Item%201A.%20Risk%20Factors) **No material changes** to risk factors were reported since the 2022 Annual Report on Form 10-K - **No material changes** to risk factors were reported for the three months ended September 30, 2023[566](index=566&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=142&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales occurred, and **no shares were repurchased** under the program in Q3 2023 - **No shares were repurchased** under the company's share repurchase program during the three months ended September 30, 2023[569](index=569&type=chunk) [Item 5. Other Information](index=142&type=section&id=Item%205.%20Other%20Information) **Michael A. DeSieno** was appointed as **Chief Accounting Officer** on November 9, 2023 - **Michael A. DeSieno** was appointed as **Chief Accounting Officer** on November 9, 2023[573](index=573&type=chunk)

Barings BDC, Inc. (NYSE:BBDC) Q2 2023 Earnings Conference Call August 10, 2023 9:00 AM ET Company Participants Jeff Chillag - Head of Investor Relations Eric Lloyd - Executive Chairman & CEO Ian Fowler - President Elizabeth Murray - CFO, COO & Controller Bryan High - Head of Capital Solutions and Co-Portfolio Manager Conference Call Participants Kyle Joseph - Jefferies Finian O'Shea - Wells Fargo Robert Dodd - Raymond James Casey Alexander - Compass Point David Miyazaki - Confluence Investment Management Op ...

Financial Performance - Net asset value (NAV) as of June 30, 2023, was $1134 per share, compared to $1117 as of March 31, 2023[6] - Net investment income for the quarter ended June 30, 2023, was $031 per share[7] - The Board of Directors approved a third-quarter dividend of $026 per share, an increase of $001 over the prior quarter[8] Portfolio Activity - Total originations during the quarter were $66 million, while sales and repayments totaled $135 million, resulting in net repayments of $70 million[7] - Middle Market Loans experienced a net decrease in investments of $61 million, with total fundings of $36 million and sales/repayments of $97 million[14] - Cross Platform Investments saw a net increase of $1 million, with $30 million in new originations and $29 million in sales/repayments[14] Portfolio Composition and Credit Quality - As of June 30, 2023, non-accrual investments represented 11% of the total portfolio at fair value[9] - The weighted-average portfolio yield as of June 30, 2023, was 109% for Middle-Market Loans, 112% for Cross-Platform investments, and 112% for acquired assets[7] - First lien investments accounted for 676% of the portfolio[20] Balance Sheet and Leverage - The investment portfolio's fair value was $25059 million as of 2Q 2023[10] - Total debt outstanding (principal) was $14971 million as of 2Q 2023[10] - The debt-to-equity ratio was 124x, or 115x after adjusting for cash, short-term investments, and unsettled transactions[10, 34]

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the company's core unaudited consolidated financial statements for the period ended June 30, 2023, highlighting an increase in total net assets to $1.21 billion and a rise in Net Asset Value (NAV) per share to $11.34 [Unaudited Consolidated Balance Sheet](index=3&type=section&id=Unaudited%20Consolidated%20Balance%20Sheet) As of June 30, 2023, total assets were $2.73 billion, total liabilities $1.52 billion, and total net assets $1.21 billion, with NAV per share increasing to $11.34 Consolidated Balance Sheet Summary (in thousands) | Metric | June 30, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Total Investments at Fair Value** | $2,505,992 | $2,448,935 | | **Total Assets** | $2,730,413 | $2,709,957 | | **Total Liabilities** | $1,522,816 | $1,517,628 | | **Total Net Assets** | $1,207,597 | $1,192,329 | | **Net Asset Value Per Share** | $11.34 | $11.05 | [Unaudited Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) For Q2 2023, total investment income was $75.3 million, net investment income $33.6 million, and net assets increased by $40.1 million, a significant improvement from Q2 2022 Statement of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Investment Income** | $75,302 | $55,592 | $142,506 | $99,350 | | **Total Operating Expenses** | $41,478 | $23,818 | $80,988 | $48,563 | | **Net Investment Income After Taxes** | $33,624 | $31,774 | $61,123 | $50,781 | | **Net Increase (Decrease) in Net Assets** | $40,117 | $(24,993) | $79,768 | $(3,962) | Per Share Data | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Investment Income Per Share** | $0.31 | $0.29 | $0.57 | $0.52 | | **Net Increase (Decrease) in Net Assets Per Share** | $0.37 | $(0.23) | $0.74 | $(0.04) | [Unaudited Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased from $1.205 billion to $1.208 billion in Q2 2023, driven by a $40.1 million net increase from operations, partially offset by distributions and share repurchases Reconciliation of Net Assets - Q2 2023 (in thousands) | Description | Amount | | :--- | :--- | | **Balance, March 31, 2023** | **$1,205,001** | | Net Increase from Operations | $40,117 | | Distributions of Net Investment Income | $(26,667) | | Purchases of Shares in Repurchase Plan | $(10,854) | | **Balance, June 30, 2023** | **$1,207,597** | Reconciliation of Net Assets - H1 2023 (in thousands) | Description | Amount | | :--- | :--- | | **Balance, December 31, 2022** | **$1,192,329** | | Net Increase from Operations | $79,768 | | Distributions of Net Investment Income | $(53,646) | | Purchases of Shares in Repurchase Plan | $(10,854) | | **Balance, June 30, 2023** | **$1,207,597** | [Unaudited Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2023, cash and foreign currencies decreased by $59.1 million, due to $27.2 million used in operating activities and $31.9 million in financing activities Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net Cash Provided by (Used in) Operating Activities** | $(27,196) | $(12,670) | | **Net Cash Provided by (Used in) Financing Activities** | $(31,889) | $126,187 | | **Net Increase (Decrease) in Cash and Foreign Currencies** | $(59,085) | $113,517 | [Consolidated Schedule of Investments](index=9&type=section&id=Consolidated%20Schedule%20of%20Investments) The investment portfolio's fair value reached $2.51 billion as of June 30, 2023, diversified across non-control, affiliate, and control investments, primarily in senior secured term loans Total Investments by Category (June 30, 2023, in thousands) | Investment Category | Cost | Fair Value | | :--- | :--- | :--- | | Non-Control / Non-Affiliate | $2,138,921 | $2,053,044 | | Affiliate Investments | $317,916 | $345,990 | | Control Investments | $97,868 | $106,958 | | **Total Investments** | **$2,554,705** | **$2,505,992** | - The company holds derivative instruments, including two Credit Support Agreements with its adviser, Barings LLC, with a total notional amount of **$123 million** and a fair value of **$60.65 million** as of June 30, 2023[83](index=83&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=70&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section details accounting policies, related party agreements, investment valuation, borrowings, derivative instruments, and the 2022 Sierra Merger - The company is externally managed by Barings LLC under the New Barings BDC Advisory Agreement, amended and restated on June 24, 2023, to update its term[165](index=165&type=chunk)[175](index=175&type=chunk) - A 12-month share repurchase program for up to **$30.0 million** was authorized on February 23, 2023, with **1,400,000 shares** repurchased for approximately **$10.9 million** during the three and six months ended June 30, 2023[173](index=173&type=chunk) - The company utilizes several joint ventures, including Jocassee Partners LLC, Thompson Rivers LLC, Waccamaw River LLC, and Sierra Senior Loan Strategy JV I LLC, which are accounted for as equity investments and not consolidated[218](index=218&type=chunk)[233](index=233&type=chunk)[240](index=240&type=chunk)[248](index=248&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=115&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes the company's financial condition and operating results, covering business overview, portfolio, investment activity, and a comparison of results, highlighting increased investment income and a positive shift in net unrealized appreciation [Overview of Our Business](index=115&type=section&id=Overview%20of%20Our%20Business) Barings BDC, an externally-managed BDC advised by Barings LLC, primarily invests in senior secured private debt in middle-market businesses, with a weighted average yield of 10.4% on its debt portfolio as of June 30, 2023 - The company's investment strategy, managed by Barings GPFG, focuses on senior secured private debt in well-established, middle-market businesses with low cyclicality and operating risk[410](index=410&type=chunk)[411](index=411&type=chunk) Weighted Average Yield on Debt Investments | Date | Yield (Excluding Non-Accrual) | Yield (Including Non-Accrual) | | :--- | :--- | :--- | | June 30, 2023 | 10.4% | 10.0% | | Dec 31, 2022 | 9.7% | 9.1% | [Portfolio Composition and Investment Activity](index=118&type=section&id=Portfolio%20Composition%20and%20Investment%20Activity) The investment portfolio's fair value increased to $2.51 billion across 328 companies, with $153.0 million in new and follow-on investments and six companies on non-accrual status as of June 30, 2023 Portfolio Composition by Investment Type (Fair Value, in thousands) | Investment Type | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Senior debt and 1st lien notes | $1,700,975 | $1,696,192 | | Subordinated debt and 2nd lien notes | $246,997 | $263,139 | | Structured products | $81,068 | $73,550 | | Equity shares | $356,201 | $284,570 | | Equity warrants | $1,144 | $1,057 | | Investment in joint ventures / PE fund | $119,607 | $130,427 | | **Total** | **$2,505,992** | **$2,448,935** | - During the six months ended June 30, 2023, the company made **15 new investments** totaling **$81.4 million** and follow-on investments in existing portfolio companies of **$71.6 million**[427](index=427&type=chunk) - As of June 30, 2023, **six portfolio companies** were on non-accrual status, with a total fair value of **$26.6 million**, representing **1.1%** of the total portfolio fair value[433](index=433&type=chunk) [Results of Operations](index=121&type=section&id=Results%20of%20Operations) Q2 2023 total investment income rose to $75.3 million, driven by higher base rates and portfolio size, resulting in $33.6 million net investment income and a $40.1 million net increase in net assets from operations due to positive unrealized appreciation Comparison of Operating Results (in thousands) | Metric | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Investment Income** | $75,302 | $55,592 | $142,506 | $99,350 | | **Net Investment Income After Taxes** | $33,624 | $31,774 | $61,123 | $50,781 | | **Net Increase (Decrease) in Net Assets** | $40,117 | $(24,993) | $79,768 | $(3,962) | - The increase in investment income was driven by a higher weighted average yield on the debt portfolio (**10.4%** at June 30, 2023 vs. **7.6%** at June 30, 2022) and a larger average portfolio size[443](index=443&type=chunk) - Incentive fees increased to **$10.1 million** in Q2 2023 from nil in Q2 2022, primarily due to the Incentive Fee Cap limiting the fee in the prior year and an increase in pre-incentive fee net investment income[447](index=447&type=chunk) [Liquidity and Capital Resources](index=124&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by $80.3 million cash, $1.49 billion in borrowings, and an asset coverage ratio of 180.6%, with a $0.26 per share dividend declared post-quarter end - For the six months ended June 30, 2023, cash decreased by **$59.1 million**, with operating activities using **$27.2 million** and financing activities using **$31.9 million**[460](index=460&type=chunk) Borrowings Summary (as of June 30, 2023, in millions) | Facility | Amount Outstanding | | :--- | :--- | | Credit Facilities | $772.1 | | Notes Payable (Net) | $719.8 | | **Total Borrowings** | **$1,491.9** | - The company's asset coverage ratio was **180.6%** as of June 30, 2023, providing a cushion over the statutory minimum of **150%**[424](index=424&type=chunk) [Critical Accounting Policies and Use of Estimates](index=130&type=section&id=Critical%20Accounting%20Policies%20and%20Use%20of%20Estimates) Investment valuation and revenue recognition are critical accounting policies, with Level 3 inputs requiring significant judgment and independent third-party valuation, and interest income recognized on an accrual basis - The company's investment portfolio, primarily composed of debt and equity instruments of privately held companies, is valued using **Level 3 inputs** due to the lack of quoted prices or other observable inputs[500](index=500&type=chunk) - The Board has designated the Adviser as the valuation designee, which utilizes independent third-party providers to perform valuations on portfolio investments quarterly[502](index=502&type=chunk)[505](index=505&type=chunk) - Revenue recognition for interest income is on an accrual basis, but loans are placed on non-accrual status if collectability is uncertain, and PIK interest is also recognized as income but represents a non-cash source of revenue[508](index=508&type=chunk)[514](index=514&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=138&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk from its $1.93 billion variable-rate debt portfolio, with a 100-basis-point rate increase estimated to boost annual net income by $11.5 million, and mitigates foreign currency risk by borrowing in local currencies - As of June 30, 2023, approximately **$1.93 billion** of the company's debt portfolio investments bore interest at variable rates, primarily tied to LIBOR or SOFR[533](index=533&type=chunk) Interest Rate Sensitivity Analysis (Annual Impact on Net Income) | Basis Point Change | Net Income Impact (in thousands) | | :--- | :--- | | Up 300 basis points | $34,592 | | Up 200 basis points | $23,061 | | Up 100 basis points | $11,531 | | Down 50 basis points | $(5,766) | - The company mitigates foreign currency exposure by borrowing in local currencies under its credit facility to finance investments denominated in those currencies[533](index=533&type=chunk) [Item 4. Controls and Procedures](index=140&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during Q2 2023 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2023[536](index=536&type=chunk) - No material changes in internal control over financial reporting were identified during the second quarter of 2023[537](index=537&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=141&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material pending legal proceedings, beyond ordinary routine litigation incidental to its business - Neither the company, its Adviser, nor its subsidiaries are currently subject to any material pending legal proceedings[539](index=539&type=chunk) [Item 1A. Risk Factors](index=141&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022, and its Q1 2023 Form 10-Q were reported - No material changes to the previously disclosed risk factors were reported for the three months ended June 30, 2023[541](index=541&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=141&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities but repurchased 1,400,000 shares for approximately $10.9 million during Q2 2023, with $19.1 million remaining for repurchases Share Repurchases - Q2 2023 | Period | Total Shares Purchased | Average Price Paid | Approx. Value Remaining Under Program (in thousands) | | :--- | :--- | :--- | :--- | | May 2023 | 975,000 | $7.68 | $22,512 | | June 2023 | 425,000 | $7.93 | $19,142 | - The Board authorized a new 12-month, **$30.0 million** share repurchase program commencing on March 1, 2023, for open market purchases at prices below the then-current NAV per share[542](index=542&type=chunk) [Item 3. Defaults Upon Senior Securities](index=142&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[546](index=546&type=chunk) [Item 5. Other Information](index=142&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated any Rule 10b5-1 trading plans for the purchase or sale of the company's securities during the fiscal quarter ended June 30, 2023 - No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the quarter[547](index=547&type=chunk) [Item 6. Exhibits](index=143&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including an amendment to the Senior Secured Revolving Credit Agreement and the Third Amended and Restated Investment Advisory Agreement, along with required certifications - Key exhibits filed include Amendment No. 4 to the Senior Secured Revolving Credit Agreement and the Third Amended and Restated Investment Advisory Agreement, dated June 24, 2023[549](index=549&type=chunk)

Barings BDC, Inc. (NYSE:BBDC) Q1 2023 Earnings Conference Call May 5, 2023 9:00 AM ET Company Participants Eric Lloyd - Chairman and Chief Executive Officer Ian Fowler - Co-Head of Global Private Finance and President of Barings BDC Elizabeth Murray - Chief Financial Officer and Chief Operating Officer Bryan High - Head of Capital Solutions and Co-Portfolio Manager Conference Call Participants Finian O'Shea - Wells Fargo Casey Alexander - Compass Point Sean-Paul Adams - Raymond James Paul Johnson - KBW Oper ...

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 March 31, 2023 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. Fourth Quarter 2022 Earnings Presentation February 23, 2023 Barings-Public Disclaimers and Cautionary Notes Regarding Forward-Looking Statements Cautionary Notice: Certain statements contained in this presentation are "forward-looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect management's current estimates, projections, expectations or beliefs, and which are subjec ...

Barings BDC, Inc. (NYSE:BBDC) Q4 2022 Results Conference Call February 24, 2023 9:00 AM ET Company Participants Eric Lloyd - Chief Executive Officer Ian Fowler - Co-Head of Global Private Finance, President of Barings BDC Bryan High - Head of Capital Solutions and Co-Portfolio Manager Jonathan Landsberg - Chief Financial Officer Conference Call Participants Kyle Joseph - Jefferies Casey Alexander - Compass Point Robert Dodd - Raymond James Ryan Lynch - KBW Operator At this time, I would like to welcome ever ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 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. (Exact name of registrant as specified in its charter) Maryland 06-1798488 (State or other jurisdiction of in ...