Investment Performance - Total investment income for the three months ended June 30, 2023, was $40.7 million, compared to $13.0 million for the same period in 2022, representing a 213% increase[199] - Net investment income for the three months ended June 30, 2023, was $21.7 million, up from $7.1 million in the same period of 2022, reflecting a 205% increase[199] - The weighted average total yield to maturity of debt and income-producing securities at fair value was 12.3% as of June 30, 2023[188] - The net unrealized gains on investments for the three months ended June 30, 2023, were $4.4 million, compared to $2.0 million for the same period in 2022, reflecting a 120% increase[204] - The total unrealized appreciation for the six months ended June 30, 2023, was $6.6 million, up from $2.8 million in the same period of 2022, indicating a 136% increase[210] Investment Commitments - The company made gross new investment commitments of $57.2 million for the three months ended June 30, 2023, compared to $118.3 million for the same period in 2022[191] - The average new investment commitment amount for the three months ended June 30, 2023, was $5.7 million, compared to $4.7 million in the same period of 2022[191] - As of June 30, 2023, the company had subscription agreements with investors for an aggregate capital commitment of $887.0 million, of which $228.7 million is undrawn[185] - Unfunded commitments to provide debt financing to portfolio companies were $116.1 million as of June 30, 2023[227] Financial Position - As of June 30, 2023, the company had 157 debt investments and 13 equity investments in 73 portfolio companies, with an aggregate fair value of approximately $1,284 million[187] - Cash and cash equivalents as of June 30, 2023, totaled $28.0 million, down from $14.9 million as of August 10, 2023[220] - The company had $75 million in senior unsecured notes outstanding as of June 30, 2023, with $25 million due in June 2027 and $50 million due in June 2028[221] - Total contractual obligations amount to $641 million, with $632 million due after one year[226] Operating Expenses - Operating expenses for the three months ended June 30, 2023, were $19.0 million, significantly up from $5.9 million in the same period of 2022, representing a 221% increase[201] Leadership Changes - The company accepted the resignation of its CEO and appointed two Co-CEOs effective August 16, 2023[186] Interest Rate Sensitivity - The company is subject to interest rate sensitivity, with a potential decrease in net investment income of $14.4 million if interest rates rise by 200 basis points[243][245] - The company may hedge against interest rate fluctuations using standard hedging instruments, which could limit benefits from lower interest rates[246] Credit Facilities - As of June 30, 2023, the Corporate Credit Facility has a total commitment of $400 million, with a potential increase to $550 million under certain circumstances[222] - The Revolving Funding Facility has a total commitment of $455 million, with an interest rate of daily SOFR plus 2.75% per annum[224] - The Subscription Credit Agreement allows borrowing up to $125 million, with an interest rate of Term SOFR plus 1.975%[225] - The company has a commitment fee of 0.375% per annum on any unused portion of the Corporate Credit Facility[222] - The interest rate on the Subscription Credit Agreement is subject to a 0.275% floor[225] Accounting Estimates - The company’s critical accounting estimates affect the reported amounts of assets, liabilities, revenues, and expenses, which could lead to actual results differing from estimates[228] Shareholder Distributions - The company declared a distribution of $0.53 per share to common stockholders, totaling $20.7 million, with $1.4 million reinvested into the company[184]
Kayne Anderson BDC, Inc.(KBDC) - 2023 Q2 - Quarterly Report