Barings(US:BBDC)2025-05-08 20:18Investment Portfolio - As of March 31, 2025, the total value of the investment portfolio was $2,571.2 million, an increase from $2,449.3 million as of December 31, 2024[407]. - The company had investments in 329 portfolio companies with an aggregate cost of $2,610.7 million as of March 31, 2025, compared to 328 companies and $2,522.7 million as of December 31, 2024[407]. - The fair value of senior debt and 1 lien notes increased to $1,819,640,000, representing 71% of the total portfolio as of March 31, 2025, up from 69% as of December 31, 2024[408]. - The fair value of equity shares increased to $434,144,000, representing 17% of the total portfolio as of March 31, 2025[408]. - The aggregate fair value of non-accrual assets was $14.5 million as of March 31, 2025, representing 0.6% of the total fair value of the portfolio[416]. - The company had nine portfolio companies on non-accrual status as of March 31, 2025, compared to eight companies as of December 31, 2024[416]. - The total cost of non-accrual assets was $47.6 million, comprising 1.8% of the total cost of the portfolio as of March 31, 2025[416]. Financial Performance - Total investment income for the three months ended March 31, 2025, was $64.4 million, a decrease from $69.8 million for the same period in 2024[428]. - Total operating expenses for the three months ended March 31, 2025, were $37.6 million, down from $40.2 million in the same period in 2024[430]. - For the three months ended March 31, 2025, the company recognized net realized losses totaling $1.1 million, primarily due to a net loss on the investment portfolio of $17.7 million, offset by gains from forward currency contracts of $15.2 million and foreign currency transactions of $1.4 million[437]. - The net loss on the investment portfolio for the three months ended March 31, 2025, included a $9.8 million loss from two loan investments and a $7.3 million loss from one equity investment[437]. - The company recorded net unrealized appreciation of $7.3 million for the three months ended March 31, 2025, driven by a $17.0 million appreciation in the current portfolio, partially offset by $22.3 million in unrealized depreciation from forward currency contracts[441]. Debt and Borrowings - The company had U.S. dollar borrowings of $303.0 million under the February 2019 Credit Facility, with a weighted average interest rate of 6.347%[450]. - The total fair value of borrowings outstanding under the February 2019 Credit Facility was $497.3 million as of March 31, 2025[451]. - The company issued $50.0 million in Series A senior unsecured notes due August 2025, with a fixed interest rate of 4.66% per year[452]. - The November 2020 NPA included $62.5 million in Series B Notes and $112.5 million in Series C Notes, with fixed interest rates of 4.25% and 4.75% respectively[457]. - The February 2021 NPA included $80.0 million in Series D Notes and $70.0 million in Series E Notes, with fixed interest rates of 3.41% and 4.06% respectively[462]. - The November 2026 Notes had an aggregate principal amount of $350.0 million and a fixed interest rate of 3.300%[469]. - The February 2029 Notes had an aggregate principal amount of $300.0 million and a fixed interest rate of 7.000%[475]. Investment Income and Fees - Total Fee and Other Income for the three months ended March 31, 2025, was $3,573,000, compared to $3,474,000 for the same period in 2024, representing an increase of 2.9%[512]. - PIK interest income for the three months ended March 31, 2025, was $4,318,000, up from $3,124,000 in 2024, reflecting a growth of 38.3%[515]. - Total PIK income for the three months ended March 31, 2025, was $7,467,000, compared to $6,101,000 in 2024, marking a rise of 22.4%[515]. - The company reported total recurring fee and other income of $2,485,000 for Q1 2025, an increase from $2,130,000 in Q1 2024, which is a growth of 16.7%[512]. Risk Management - The company is subject to market risks including interest rate fluctuations, which can affect net interest income and investment portfolio value[525]. - Interest rate risk management systems are in place to monitor and mitigate exposure to changes in interest rates[526]. - A hypothetical increase of 300 basis points in interest rates would result in an increase of $59,458 thousand in interest income and a net income of $35,540 thousand[531]. Shareholder Actions - On May 8, 2025, the Board declared a quarterly distribution of $0.26 per share, payable on June 11, 2025[489]. - The company authorized a new share repurchase program allowing for the repurchase of up to $30.0 million in common stock, effective from March 1, 2025[482]. - During the three months ended March 31, 2025, the company repurchased 150,000 shares at an average price of $9.67 per share[482]. Management and Advisory - Barings, the investment adviser, manages the investment portfolio and oversees administrative services necessary for operations[395][396]. - Barings' Global Private Finance Group manages day-to-day operations and provides investment advisory services, with a total of $353.3 billion in assets under management as of March 31, 2025[402]. - The company has applied for new exemptive relief from the SEC to allow for negotiated co-investment transactions alongside Barings' affiliated funds[398].