Investment Portfolio - As of March 31, 2021, the company had 48 debt investments in 35 portfolio companies with an aggregate fair value of approximately $156 million and an amortized cost of $153.2 million, consisting of 100% first lien senior secured debt investments[133]. - The company made gross investments of $164.8 million during the quarter, resulting in total new investments of $159.8 million after accounting for sold investments[135]. - The initial portfolio purchased from the Warehouse Entity consisted of 18 loans with an average outstanding balance of $5.9 million and an average yield of 8.8%[132]. - The company purchased an initial portfolio of investments for $103 million from an affiliate of its Advisor, funded by proceeds from common stock sales and borrowings under the credit facility[172]. - The majority of the company's investments are classified as Level 3 under ASC Topic 820, indicating that they are valued based on unobservable inputs and management assumptions[175]. Financial Performance - For the quarter ended March 31, 2021, total investment income was $1.74 million, with net investment income of $0.62 million after net expenses of $1.12 million[138]. - The company anticipates that between 80% and 90% of its portfolio will be invested in first lien senior secured, unitranche, and split-lien term loans[128]. - The weighted average interest rate of new investment commitments was 7.3%, with 99.5% of new debt investment commitments at floating rates[135]. - A hypothetical increase of 200 basis points in interest rates could result in a net investment income increase of $0.6 million[178]. Debt and Financing - The company had $90 million borrowed under credit facilities as of March 31, 2021, and cash and cash equivalents of $23.2 million[146]. - The maximum commitment of the Loan and Security Agreement (LSA) is up to $150 million, with the potential to increase by $50 million under certain conditions[148]. - The company entered into a $75 million credit agreement, which includes a Subscription Facility with a commitment of $40 million and a Treasury Facility with a commitment of $35 million as of March 31, 2021[149][150]. - The interest rate for the Subscription Facility is LIBOR plus 1.90%, while the Treasury Facility has an interest rate of LIBOR plus 0.20%[149]. - As of March 31, 2021, the company has total contractual obligations of $90 million, with $50 million due in less than one year and $40 million due in 1-3 years[166]. - The company has no off-balance sheet financings or liabilities other than contractual commitments[167]. Asset Management - As of March 31, 2021, the company's asset coverage ratio was 197%, exceeding the required minimum of 150%[145]. - The Board of Directors is responsible for determining the fair value of the company's portfolio investments, which are reviewed quarterly[165]. - The company has entered into an Investment Advisory Agreement, which includes a base management fee and performance-based incentive fees[168][169]. Risk Factors - The company is subject to interest rate risk, with potential impacts on net investment income from changes in market interest rates[176].
Kayne Anderson BDC, Inc.(KBDC) - 2021 Q1 - Quarterly Report