Investment Portfolio - As of March 31, 2025, the company had investments in 116 portfolio companies with an aggregate fair value of approximately $2,167 million and unfunded commitments of $236 million[258]. - The portfolio consisted of 98.1% first lien senior secured loans, 0.8% subordinated debt, and 1.1% equity investments[258]. - For the three months ended March 31, 2025, gross new investment commitments were $340.2 million, with net investment commitments of $230.2 million after accounting for sold or repaid investments[267]. - The principal amount of private credit investments funded was $293.8 million, while broadly syndicated loans amounted to $0 million[267]. - The average position size for private credit and equity investments was $23.0 million[261]. - The percentage of investments in trading companies & distributors rose to 15.4% as of March 31, 2025, from 15.1% as of December 31, 2024[273]. Financial Performance - Total investment income for Q1 2025 was $55.2 million, up from $46.5 million in Q1 2024, representing a 15.0% increase[276]. - Net investment income for Q1 2025 was $28.7 million, compared to $23.8 million in Q1 2024, reflecting a 20.6% increase[276]. - Total expenses for Q1 2025 were $27.8 million, an increase from $22.7 million in Q1 2024, marking a 22.5% rise[278]. - Net realized gains on investments for Q1 2025 were $0.6 million, while there were no realized gains or losses in Q1 2024[279]. - Net change in unrealized gains (losses) for Q1 2025 was $(6.5) million, compared to a gain of $4.0 million in Q1 2024[280]. Debt and Financing - As of March 31, 2025, the company had $75 million in senior unsecured notes outstanding, with $25 million of 8.65% Series A Notes due June 2027 and $50 million of 8.74% Series B Notes due June 2028[288]. - The company borrowed $940.5 million under its credit facilities and had cash and cash equivalents of $46 million as of March 31, 2025[287]. - The Corporate Credit Facility has a total commitment of $400 million, with a potential increase to $600 million under certain circumstances[289]. - The interest rate on the Corporate Credit Facility is Term SOFR plus an applicable spread of 2.10% per annum[289]. - The company has a senior secured revolving funding facility with a commitment of $675 million, maturing on February 13, 2030, with an interest rate of daily SOFR plus 2.15%[290]. - The company also has a second revolving credit facility with an initial commitment of $250 million, which can be increased to $500 million, maturing on December 22, 2029, with an interest rate of 3-month term SOFR plus 2.25%[291]. - As of March 31, 2025, total contractual obligations amount to $1,015.5 million, with $577 million due from the Revolving Funding Facility and $169.5 million from the Revolving Funding Facility II[292]. - The company had unfunded commitments of $235.5 million as of March 31, 2025, including $150.6 million for revolvers to provide debt financing to portfolio companies[293]. Interest Rate Risk - As of March 31, 2025, 100% of the company's debt investments had floating interest rates[260]. - The company is subject to interest rate risk, with potential impacts on net investment income based on changes in interest rates, as shown in a table indicating effects of hypothetical rate changes[310][312]. - A decrease of 200 basis points in interest rates could lead to a decrease in net investment income by $23.5 million[312]. - The company may hedge against interest rate fluctuations using standard hedging instruments, which could limit participation in benefits from lower interest rates[313]. Management and Fees - The company declared a regular dividend of $0.40 per share, totaling $28.5 million, with $2.4 million fulfilled through a Dividend Reinvestment Plan[253]. - Management fees increased to $5.1 million in Q1 2025 from $3.5 million in Q1 2024, a 45.7% increase[278]. - The base management fee under the Amended Investment Advisory Agreement is set at an annual rate of 1.00%, with an incentive fee on income subject to a twelve-quarter lookback hurdle rate of 1.50%[303]. Valuation and Accounting - The fair value of investments was $78.0 million, up from $69.4 million as of December 31, 2024, a 9.3% increase[272]. - The largest contributor to unrealized gains in Q1 2025 was Arborworks Acquisition, LLC, contributing $1.7 million[282]. - The portfolio had four debt investments on non-accrual status as of March 31, 2025, compared to one in the previous year[277]. - The company’s critical accounting estimates affect reported amounts of assets, liabilities, revenues, and expenses, with potential variances due to changes in economic conditions[294]. - The valuation of investments is primarily based on market quotations for traded investments, while non-traded investments are valued using a process that reflects fair value[295][297].
Kayne Anderson BDC, Inc.(KBDC) - 2025 Q1 - Quarterly Report