Financial Data and Key Metrics Changes - Net asset value per share was $11.18, reflecting a 1% decline quarter over quarter [25] - Net investment income for the quarter was $0.28 per share, an increase from $0.25 per share in the prior quarter [12][27] - The weighted average yield at fair value remained unchanged at 10.1% [14] - The net leverage ratio was 1.29 times at quarter end, up from 1.24 times as of March 31 [28] Business Line Data and Key Metrics Changes - Gross originations were nearly $200 million, with net originations of $32 million [6] - Barings originated positions now make up 95% of the BBDC portfolio at fair value, up from 76% in 2022 [13] - Non-accrual rate improved to 50 basis points at fair value, well below industry averages [13][23] Market Data and Key Metrics Changes - The portfolio consists of 74% secured investments, with approximately 71% being first lien securities [21] - Interest coverage within the portfolio was 2.4 times, above industry averages [21] Company Strategy and Development Direction - The company focuses on core middle market investments due to lower leverage and stronger risk-adjusted returns [6] - Emphasis on sectors that perform resiliently across economic environments to provide stability [6] - The company maintains a cautious optimism about the broader economy and is well-positioned to withstand various economic developments [7][16] Management's Comments on Operating Environment and Future Outlook - The economic outlook remains uncertain, but the company believes its durable portfolio construction will help navigate future challenges [16] - Management noted that macroeconomic events have not historically produced widespread defaults, with idiosyncratic risks being more significant [20] - The company expects increased M&A activity in the latter half of the year based on current market indicators [11] Other Important Information - The Board declared a third-quarter dividend of $0.26 per share, consistent with the prior quarter [14][30] - The company repurchased 100,000 shares during the quarter, totaling 250,000 shares under the current plan [31] Q&A Session Summary Question: Can you expand on the profile of sales to Jakafi and overall leverage? - Management indicated that Jakafi has ample liquidity to absorb incremental investments and that they will continue to run leverage towards the higher end of their range due to strong credit quality [35][40] Question: How does the new name ScreenVision fit into the Barings platform? - Management noted that there is significant collaboration across investment teams, with a centralized sourcing process [43][44] Question: What percentage of originations were follow-ons versus new borrowers? - Approximately 60-70% of originations were follow-ons for existing borrowers [50] Question: How is the pipeline looking after the second quarter? - Management expressed optimism about forward visibility on origination, despite the same economic outlook as previous years [52] Question: How sustainable is the dividend given the forward curve? - Management expressed confidence in earning the dividend based on the current SAFR curve, despite potential changes due to rate cuts [60][62] Question: What is the current state of credit in the cycle? - Management indicated a constructive setup for credit, with modest growth and stable inflation, but acknowledged uncertainty in the future [63] Question: How is the share repurchase program being managed? - Management explained that tactical elements and blackout periods influence share repurchase activity, but they remain focused on shareholder accretive activities [68][70] Question: Is August seeing increased deal activity? - Management noted that while the pipeline is higher, it is too early to declare August as one of the busiest months [72][75]

Financial Data and Key Metrics Changes - Adjusted net investment income was $0.36 per share, flat compared to the prior quarter [7] - Annualized net investment income ROE was 15.4% and net asset value per share was $9.18, down from $9.23 in the previous quarter [8] - Net realized losses for the quarter were approximately $41 million or $0.48 per share, primarily due to the disposition of investments [24] - Net unrealized gains totaled $30 million or $0.35 per share, reflecting reversals of previous losses [24] Business Line Data and Key Metrics Changes - The number of portfolio companies on nonaccrual status decreased to eight from twelve, representing 4.4% of the portfolio at fair value [8][25] - The portfolio had a fair market value of approximately $1.8 billion, invested across 146 companies [15] - 90% of the portfolio was invested in senior secured debt, with 94% of that amount being floating rate [16] Market Data and Key Metrics Changes - The weighted average annual effective yield of the portfolio was 12.2%, down from 12.4% in the previous quarter [16] - New investments had a weighted average yield of 11.4%, while exited investments had a yield of 11.2% [17] Company Strategy and Development Direction - The company is focused on investing in first lien loans and maintaining a diversified portfolio [20] - The strategy includes targeting core middle market companies and leveraging resources from the BlackRock platform [20] - The company aims to resolve remaining challenged positions within the portfolio and maintain a disciplined approach to loan origination [33][34] Management's Comments on Operating Environment and Future Outlook - The current market environment is characterized by tightened access to capital and higher financing costs [29] - The company believes the immediate impact from potential tariffs will be limited, estimating only a mid-single-digit percentage of the portfolio will be directly affected [30] - There is strong interest from borrowers for direct loans in the core middle market, which is the fastest-growing sector of the economy [31] Other Important Information - The Board declared a second quarter dividend of $0.25 and a special dividend of $0.04 per share [13] - The company repurchased 3,150 shares of TCP stock during the quarter and an additional 39,500 shares after the quarter end [13] Q&A Session Summary Question: What are the thoughts on the trajectory of share repurchases going forward? - The company will continue to monitor the trading price and repurchase shares when they are deemed accretive [38] Question: Do most portfolio companies have sponsors? - The majority of portfolio companies do have sponsors or institutional ownership, but decision-making often involves management teams [40] Question: What is the appetite of sponsors for injecting more equity in financing? - Sponsors have been supportive, but their willingness may decrease if equity values are not sustainable [42][43] Question: How long will it take to complete restructuring of the aggregators? - The company expects to complete restructurings in the next few quarters, with some positive signs of improvement [51] Question: What drove the markup for Job and Talent? - The markup was driven by improved performance and the provision of growth capital, which included enhanced economics for the company [62][67] Question: Are there plans to pursue new SBIC licenses? - The company is in the process of obtaining a second SBIC license, which is the maximum allowed [68]