Investment Performance - Total investment income for the three months ended September 30, 2022, was $20.5 million, compared to $5.0 million for the same period in 2021, representing a 310% increase [200]. - Net investment income for the three months ended September 30, 2022, was $11.3 million, up from $3.0 million in the same period of 2021, reflecting a 277% increase [200]. - Net unrealized gains on investments for the three months ended September 30, 2022, were $7.3 million, compared to $1.7 million for the same period in 2021, representing a significant increase of 329% [202]. - For the nine months ended September 30, 2022, net unrealized gains totaled $9.4 million, up from $5.0 million in 2021, indicating an increase of 88% [206]. Investment Commitments - Gross new investment commitments for the three months ended September 30, 2022, were $331.8 million, significantly higher than $105.6 million in the same period of 2021 [194]. - The weighted average interest rate of new investment commitments for the three months ended September 30, 2022, was 9.7%, compared to 7.3% in the same period of 2021 [194]. - The company had subscription agreements with investors for an aggregate capital commitment of $808.2 million, of which $290.5 million was undrawn [190]. - The company has unfunded commitments of $125.2 million as of September 30, 2022, compared to $97.8 million as of December 31, 2021 [220]. Financial Position - As of September 30, 2022, the company had $464 million borrowed under credit facilities and cash and cash equivalents of $20.0 million [212]. - The asset coverage ratio as of September 30, 2022, was 213%, down from 217% as of December 31, 2021, indicating a stable financial condition [210]. - As of November 9, 2022, the company had $508 million borrowed under credit facilities and cash and cash equivalents of $7.2 million [212]. - As of September 30, 2022, total contractual obligations amount to $464 million, with $62 million due in less than one year and $402 million due after five years [219]. Distribution and Share Issuance - The company paid a distribution of $0.35 per share on October 25, 2022, totaling $11.0 million, with $2.1 million reinvested into the company [189]. - The company issued and sold 11,858,122 shares of common stock during the nine months ended September 30, 2022, raising an aggregate of $193.6 million [213]. Credit Facilities - The company increased its Corporate Credit Facility commitment from $350 million to $400 million on November 10, 2022 [191]. - The Corporate Credit Facility has a total commitment of $400 million, with a potential increase to $550 million under certain conditions [215]. - The Revolving Funding Facility has a total commitment of $250 million, with a maturity date of February 18, 2027 [217]. Interest Rate Sensitivity - The company is subject to interest rate sensitivity, with potential impacts on net investment income based on hypothetical interest rate changes [232]. - A 100 basis point increase in interest rates could lead to a $9.6 million increase in interest income and a $4.6 million increase in interest expense, resulting in a net investment income increase of $5 million [234]. - The company may hedge against interest rate fluctuations using standard hedging instruments, which could limit benefits from lower interest rates [235]. Valuation and Management Fees - The Advisor is responsible for the valuation of investments, with quarterly reviews by a third-party valuation firm for Level 3 investments [226]. - The base management fee under the Investment Advisory Agreement is based on a percentage of the fair market value of investments, excluding certain assets [228]. - The Audit Committee oversees the Advisor's fair valuation processes, meeting quarterly to review determinations and reports [226]. Portfolio Diversification - As of September 30, 2022, the company had 140 debt investments and 9 equity investments with an aggregate fair value of approximately $964.0 million [192]. - As of September 30, 2022, the portfolio was diversified across various industries, with the largest being commercial services & supplies at 13.7% [197]. Other Financial Information - Interest income is recorded on an accrual basis, with specific policies for PIK interest and OIDs, impacting revenue recognition [227]. - The company does not have any off-balance sheet financings or liabilities beyond contractual commitments and legal contingencies [220].
Kayne Anderson BDC, Inc.(KBDC) - 2022 Q3 - Quarterly Report