BBDC Barings BDC Inc

Barings BDC, Inc. (NYSE: BBDC) (“Barings BDC” or the “Company”) today reported its financial and operating results for the third quarter of 2023 and announced that the Company’s Board of Directors (the “Board”) declared a quarterly cash dividend of $0.26 per share.

Highlights

Income Statement

Three Months Ended September 30, 2023

Three Months Ended June 30, 2023

(dollars in millions, except per share data)

Total Amount

Per Share(1)

Total Amount

Per Share(2)

Net investment income

$33.3

 

$0.31

 

$33.6

 

$0.31

 

Net realized losses

$(17.3

)

$(0.16

)

$(48.5

)

$(0.45

)

Net unrealized appreciation

$2.0

 

$0.02

 

$55.1

 

$0.51

 

Net increase in net assets resulting from operations

$18.3

 

$0.17

 

$40.1

 

$0.37

 

Dividends paid

 

$0.26

 

 

$0.25

 

 

(1) Based on weighted average shares outstanding during the period of 106,516,166.

(2) Based on weighted average shares outstanding during the period of 107,381,276.

Investment Portfolio and Balance Sheet

 

 

 

 

(dollars in millions, except per share data)

As of September 30, 2023

As of June 30, 2023

As of March 31, 2023

As of December 31, 2022

Investment portfolio at fair value

$2,521.6

$2,506.0

$2,556.1

$2,448.9

Weighted average yield on performing debt investments (at principal amount)

10.6 %

10.4 %

10.2 %

9.7 %

 

 

 

 

 

Total assets

$2,741.7

$2,730.4

$2,726.9

$2,710.0

Debt outstanding (principal)

$1,521.1

$1,497.1

$1,494.1

$1,454.1

Total net assets (equity)

$1,198.2

$1,207.6

$1,205.0

$1,192.3

Net asset value per share

$11.25

$11.34

$11.17

$11.05

Debt-to-equity ratio

1.27x

1.24x

1.24x

1.22x

Net debt-to-equity ratio (adjusted for unrestricted cash and net unsettled transactions)

1.18x

1.15x

1.19x

1.12x

Third Quarter 2023 Results

Commenting on the quarter, Eric Lloyd, Chief Executive Officer of Barings BDC, stated, “BBDC reported another strong quarter, out-earning the dividend by 20%. Net investment income increased 19% year-over-year and our portfolio continues to perform well despite elevated base rates. We believe our strong credit culture, flexible capital solutions, and sourcing capabilities position us to capitalize on the evolving market landscape as investment activity picks back up.”

During the three months ended September 30, 2023, the Company reported total investment income of $70.8 million, net investment income of $33.3 million, or $0.31 per share, and a net increase in net assets resulting from operations of $18.3 million, or $0.17 per share.

Net asset value (“NAV”) per share as of September 30, 2023 was $11.25, as compared to $11.34 as of June 30, 2023. The decrease in NAV per share from June 30, 2023 to September 30, 2023 was primarily attributed to a net realized loss on investments and foreign currency transactions of $0.16 per share, partially offset by net unrealized appreciation on the Company’s investment portfolio, credit support agreements and foreign currency transactions of approximately $0.02 per share and net investment income exceeding the Company’s third quarter dividend by $0.05 per share.

Recent Portfolio Activity

During the three months ended September 30, 2023, the Company made 10 new investments totaling $64.5 million and made investments in existing portfolio companies totaling $73.4 million. During the three months ended September 30, 2023, the Company had one loan repaid totaling $18.1 million and received $30.8 million of portfolio company principal payments. The Company received $1.3 million of return of capital from its joint ventures and equity investments. In addition, the Company sold $8.6 million of loans, recognizing a net realized loss on these transactions of $5.0 million and sold $45.0 million of middle-market portfolio debt investments to its joint ventures realizing a gain on these transactions of $0.5 million. In addition, an investment in one portfolio company was restructured, which resulted in a loss of $3.0 million. Lastly, the Company received proceeds related to the sale of equity investments totaling $0.5 million and recognized a net realized loss on such sales totaling $8.3 million.

During the three months ended September 30, 2023, the Company recorded net unrealized appreciation totaling $2.0 million, consisting of unrealized appreciation of $1.2 million on the MVC credit support agreement with Barings, net unrealized appreciation related to foreign currency transactions of $7.6 million, net unrealized appreciation related to forward currency contracts of $7.4 million and unrealized appreciation reclassification adjustments of $11.5 million related to the net realized losses on the sales / repayments of certain investments, net of unrealized depreciation on the Company’s current portfolio of $17.4 million, unrealized depreciation of $7.6 million on the Sierra credit support agreement with Barings and $0.7 million of deferred taxes. The net unrealized depreciation on the Company’s current portfolio of $17.4 million was driven primarily by the impact of foreign currency exchange rates on investments of $14.8 million and credit or fundamental performance of investments of $6.7 million, partially offset by broad market moves for investments of $4.1 million.

Liquidity and Capitalization

As of September 30, 2023, the Company had cash and foreign currencies of $49.8 million, $796.1 million of borrowings outstanding under its $1.1 billion senior secured revolving credit agreement, $725.0 million aggregate principal amount of unsecured notes outstanding and a net receivable from unsettled transactions of $53.5 million.

Share Repurchase Program

On February 23, 2023, the Board authorized a new 12-month share repurchase program. Under the program, the Company may repurchase, during the 12-month period that commenced on March 1, 2023, up to $30.0 million in the aggregate of its outstanding common stock in the open market at prices below the then-current NAV per share. The timing, manner, price and amount of any share repurchases will be determined by the Company, in its discretion, based upon the evaluation of economic and market conditions, the Company’s stock price, applicable legal, contractual and regulatory requirements and other factors. The program is expected to be in effect until March 1, 2024, unless extended or until the aggregate repurchase amount that has been approved by the Board has been expended. The program does not require the Company to repurchase any specific number of shares, and the Company cannot assure stockholders that any shares will be repurchased under the program. The program may be suspended, extended, modified or discontinued at any time. As of November 9, 2023, the Company had repurchased a total of 1,400,000 shares of its common stock in the open market under the authorized program at an average price of $7.75 per share, including broker commissions.

Dividend Information

The Board declared a quarterly cash dividend of $0.26 per share.

The Company’s fourth quarter dividend is payable as follows:

Fourth Quarter 2023 Dividend:

 

Amount per share:

$0.26

Record date:

December 6, 2023

Payment date:

December 13, 2023

Dividend Reinvestment Plan

Barings BDC has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends and distributions on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when the Company declares a cash dividend or distribution, stockholders who have not opted out of the DRIP will have their cash dividends or distributions automatically reinvested in additional shares of the Company’s common stock, rather than receiving cash.

When the Company declares and pays dividends and distributions, it determines the allocation of the distribution between current income, accumulated income, capital gains and return of capital on the basis of accounting principles generally accepted in the United States (“GAAP”). At each year end, the Company is required for tax purposes to determine the allocation based on tax accounting principles. Due to differences between GAAP and tax accounting principles, the portion of each dividend distribution that is ordinary income, capital gain or return of capital may differ for GAAP and tax purposes. The tax status of the Company’s distributions can be found on the Investor Relations page of its website.

Subsequent Events

Subsequent to September 30, 2023, the Company made approximately $105.3 million of new commitments, of which $96.7 million closed and funded. The $96.7 million of investments consists of $94.6 million of first lien senior secured debt investments, $2.0 million of subordinated debt investments and $0.1 million of equity investments. The weighted average yield of the debt investments was 13.1%. In addition, the Company funded $9.7 million of previously committed delayed draw term loans and $2.5 million of a previously committed preferred equity co-investment.

Conference Call to Discuss Third Quarter 2023 Results

Barings BDC has scheduled a conference call to discuss third quarter 2023 financial and operating results for Friday, November 10, 2023, at 9:00 a.m. ET.

To listen to the call, please dial 877-407-8831 or 201-493-6736 approximately 10 minutes prior to the start of the call. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available until November 17, 2023. To access the replay, please dial 877-660-6853 or 201-612-7415 and enter conference ID 13741695.

This conference call will also be available via a live webcast on the investor relations section of Barings BDC’s website at https://ir.barings.com/ir-calendar. Access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the Company's website until November 17, 2023.

Forward-Looking Statements

Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or Barings BDC’s future performance or financial condition. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management’s current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. Forward-looking statements include, but are not limited to, the Company’s projected net investment income and earnings, the Company’s distribution levels and frequency of distributions, the Company’s share repurchase activity, and the Company’s investment activity and the ability of Barings LLC to manage Barings BDC and identify investment opportunities, all of which are subject to change at any time based upon economic, market or other conditions, and may not be relied upon as investment advice or an indication of Barings BDC’s trading intent. More information on the risks and other potential factors that could affect Barings BDC’s financial results and future events, including important factors that could cause actual results or events to differ materially from plans, estimates or expectations included herein or discussed on the webcast/conference call, is included in Barings BDC’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Barings BDC’s most recently filed annual report on Form 10-K, as well as in subsequent filings, including Barings BDC’s quarterly reports on Form 10-Q. In addition, there is no assurance that Barings BDC or any of its affiliates will purchase additional shares of Barings BDC at any specific discount levels or in any specific amounts. There is no assurance that the market price of Barings BDC’s shares, either absolutely or relative to NAV, will increase as a result of any share repurchases, or that any repurchase plan will enhance stockholder value over the long term.

Non-GAAP Financial Measures

To provide additional information about the Company’s results, the Company’s management has discussed in this press release the Company’s net debt (calculated as (i) total debt less (ii) unrestricted cash and foreign currencies (excluding restricted cash) net of net payables/receivables from unsettled transactions) and its net debt-to-equity ratio (calculated as net debt divided by total net assets), which are not prepared in accordance with GAAP. These non-GAAP measures are included to supplement the Company’s financial information presented in accordance with GAAP and because the Company uses such measures to monitor and evaluate its leverage and financial condition and believes the presentation of these measures enhances investors’ ability to analyze trends in the Company’s business and to evaluate the Company’s leverage and ability to take on additional debt. However, these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for analysis of the Company’s financial results as reported under GAAP.

These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company’s results of operations in conjunction with their corresponding GAAP measures. Pursuant to the requirements of Item 10(e) of Regulation S-K, as promulgated under the Securities Exchange Act of 1934, as amended, the Company has provided a reconciliation of these non-GAAP measures in the last table included in this press release.

About Barings BDC

Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Barings BDC seeks to invest primarily in senior secured loans in middle-market companies that operate across a wide range of industries. Barings BDC’s investment activities are managed by its investment adviser, Barings LLC, a leading global asset manager based in Charlotte, NC with $347+ billion* of AUM firm-wide. For more information, visit www.baringsbdc.com.

About Barings LLC

Barings is a $347+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.

*Assets under management as of September 30, 2023

Barings BDC, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

September 30, 2023

 

December 31, 2022

 

(Unaudited)

 

 

Assets:

 

 

 

Investments at fair value:

 

 

 

Non-Control / Non-Affiliate investments (cost of $2,122,125 and $2,191,345 as of September 30, 2023 and December 31, 2022, respectively)

$

2,044,426

 

 

$

2,052,614

 

Affiliate investments (cost of $352,301 and $275,482 as of September 30, 2023 and December 31, 2022, respectively)

 

382,346

 

 

 

289,993

 

Control investments (cost of $101,771 and $95,571 as of September 30, 2023 and December 31, 2022, respectively)

 

94,863

 

 

 

106,328

 

Total investments at fair value

 

2,521,635

 

 

 

2,448,935

 

Cash

 

33,118

 

 

 

96,160

 

Foreign currencies (cost of $16,908 and $42,627 as of September 30, 2023 and December 31, 2022, respectively)

 

16,640

 

 

 

43,255

 

Interest and fees receivable

 

47,268

 

 

 

42,738

 

Prepaid expenses and other assets

 

2,237

 

 

 

1,079

 

Credit support agreements (cost of $58,000 as of both September 30, 2023 and December 31, 2022, respectively)

 

54,200

 

 

 

53,086

 

Derivative assets

 

8,240

 

 

 

1,508

 

Deferred financing fees

 

4,411

 

 

 

3,224

 

Receivable from unsettled transactions

 

53,961

 

 

 

19,972

 

Total assets

$

2,741,710

 

 

$

2,709,957

 

Liabilities:

 

 

 

Accounts payable and accrued liabilities

$

1,709

 

 

$

971

 

Interest payable

 

11,358

 

 

 

7,635

 

Administrative fees payable

 

483

 

 

 

677

 

Base management fees payable

 

8,315

 

 

 

7,981

 

Incentive management fees payable

 

4,618

 

 

 

—

 

Derivative liabilities

 

266

 

 

 

16,677

 

Payable from unsettled transactions

 

424

 

 

 

35,565

 

Borrowings under credit facilities

 

796,126

 

 

 

729,144

 

Notes payable (net of deferred financing fees)

 

720,187

 

 

 

718,978

 

Total liabilities

 

1,543,486

 

 

 

1,517,628

 

Commitments and contingencies

 

 

 

Net Assets:

 

 

 

Common stock, $0.001 par value per share (150,000,000 shares authorized, 106,516,166 and 107,916,166 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively)

 

107

 

 

 

108

 

Additional paid-in capital

 

1,845,122

 

 

 

1,855,975

 

Total distributable earnings (loss)

 

(647,005

)

 

 

(663,754

)

Total net assets

 

1,198,224

 

 

 

1,192,329

 

Total liabilities and net assets

$

2,741,710

 

 

$

2,709,957

 

Net asset value per share

$

11.25

 

 

$

11.05

 

Barings BDC, Inc.

Unaudited Consolidated Statements of Operations

(in thousands, except share and per share data)

 

 

Three Months Ended

 

Three Months Ended

 

Nine Months Ended

 

Nine Months Ended

 

September 30, 2023

 

September 30, 2022

 

September 30, 2023

 

September 30, 2022

Investment income:

 

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

$

54,365

 

 

$

39,994

 

 

$

160,094

 

 

$

111,628

 

Affiliate investments

 

576

 

 

 

278

 

 

 

1,415

 

 

 

861

 

Control investments

 

464

 

 

 

367

 

 

 

1,210

 

 

 

1,003

 

Total interest income

 

55,405

 

 

 

40,639

 

 

 

162,719

 

 

 

113,492

 

Dividend income:

 

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

897

 

 

 

1,113

 

 

 

2,555

 

 

 

1,299

 

Affiliate investments

 

7,618

 

 

 

6,792

 

 

 

24,084

 

 

 

21,545

 

Total dividend income

 

8,515

 

 

 

7,905

 

 

 

26,639

 

 

 

22,844

 

Fee and other income:

 

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

2,544

 

 

 

4,249

 

 

 

9,858

 

 

 

11,396

 

Affiliate investments

 

88

 

 

 

29

 

 

 

291

 

 

 

68

 

Control investments

 

18

 

 

 

43

 

 

 

101

 

 

 

(875

)

Total fee and other income

 

2,650

 

 

 

4,321

 

 

 

10,250

 

 

 

10,589

 

Payment-in-kind interest income:

 

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

3,317

 

 

 

2,757

 

 

 

11,634

 

 

 

7,115

 

Affiliate investments

 

412

 

 

 

224

 

 

 

663

 

 

 

361

 

Control investments

 

250

 

 

 

286

 

 

 

746

 

 

 

1,064

 

Total payment-in-kind interest income

 

3,979

 

 

 

3,267

 

 

 

13,043

 

 

 

8,540

 

Interest income from cash

 

297

 

 

 

174

 

 

 

701

 

 

 

191

 

Total investment income

 

70,846

 

 

 

56,306

 

 

 

213,352

 

 

 

155,656

 

Operating expenses:

 

 

 

 

 

 

 

Interest and other financing fees

 

21,829

 

 

 

15,341

 

 

 

61,956

 

 

 

40,170

 

Base management fee

 

8,315

 

 

 

8,267

 

 

 

24,302

 

 

 

21,520

 

Incentive management fees

 

4,618

 

 

 

1,825

 

 

 

24,309

 

 

 

6,579

 

General and administrative expenses

 

2,363

 

 

 

2,961

 

 

 

7,546

 

 

 

8,686

 

Total operating expenses

 

37,125

 

 

 

28,394

 

 

 

118,113

 

 

 

76,955

 

Net investment income before taxes

 

33,721

 

 

 

27,912

 

 

 

95,239

 

 

 

78,701

 

Income taxes, including excise tax expense

 

412

 

 

 

—

 

 

 

807

 

 

 

6

 

Net investment income after taxes

 

33,309

 

 

 

27,912

 

 

 

94,432

 

 

 

78,695

 

 

Barings BDC, Inc.

Unaudited Consolidated Statements of Operations — (Continued)

(in thousands, except share and per share data)

 

 

Three Months Ended

 

Three Months Ended

 

Nine Months Ended

 

Nine Months Ended

 

September 30, 2023

 

September 30, 2022

 

September 30, 2023

 

September 30, 2022

Realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreements, foreign currency transactions, and forward currency contracts:

 

 

 

 

 

 

 

Net realized gains (losses):

 

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

$

(16,696

)

 

$

(8,257

)

 

 

(62,142

)

 

 

(15,208

)

Affiliate investments

 

—

 

 

 

—

 

 

 

—

 

 

 

101

 

Control investments

 

—

 

 

 

(773

)

 

 

—

 

 

 

(1,587

)

Net realized gains (losses) on investments

 

(16,696

)

 

 

(9,030

)

 

 

(62,142

)

 

 

(16,694

)

Distributions of realized gains by investment companies

 

—

 

 

 

6,181

 

 

 

—

 

 

 

6,181

 

Foreign currency transactions

 

(330

)

 

 

245

 

 

 

3,743

 

 

 

(3,758

)

Forward currency contracts

 

(234

)

 

$

10,466

 

 

 

(17,144

)

 

$

10,468

 

Net realized gains (losses)

 

(17,260

)

 

 

7,862

 

 

 

(75,543

)

 

 

(3,803

)

Net unrealized appreciation (depreciation):

 

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

9,336

 

 

 

(29,481

)

 

 

62,108

 

 

 

(123,498

)

Affiliate investments

 

184

 

 

 

(320

)

 

 

13,745

 

 

 

(759

)

Control investments

 

(15,999

)

 

 

(16,991

)

 

 

(17,665

)

 

 

14,704

 

Net unrealized appreciation (depreciation) on investments

 

(6,479

)

 

 

(46,792

)

 

 

58,188

 

 

 

(109,553

)

Credit support agreements

 

(6,450

)

 

 

3,440

 

 

 

1,114

 

 

 

(10,320

)

Foreign currency transactions

 

7,560

 

 

 

13,777

 

 

 

(3,406

)

 

 

37,325

 

Forward currency contracts

 

7,379

 

 

$

3,454

 

 

 

23,143

 

 

$

15,238

 

Net unrealized appreciation (depreciation)

 

2,010

 

 

 

(26,121

)

 

 

79,039

 

 

 

(67,310

)

Net realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreements, foreign currency transactions and forward currency contracts

 

(15,250

)

 

 

(18,259

)

 

 

3,496

 

 

 

(71,113

)

Benefit from (provision for) income taxes

 

262

 

 

 

240

 

 

 

161

 

 

 

(1,650

)

Net increase (decrease) in net assets resulting from operations

$

18,321

 

 

$

9,893

 

 

$

98,089

 

 

$

5,932

 

Net investment income per share—basic and diluted

$

0.31

 

 

$

0.26

 

 

$

0.88

 

 

$

0.78

 

Net increase (decrease) in net assets resulting from operations per share—basic and diluted

$

0.17

 

 

$

0.09

 

 

$

0.91

 

 

$

0.06

 

Dividends/distributions per share:

 

 

 

 

 

 

 

Total dividends/distributions per share

$

0.26

 

 

$

0.24

 

 

$

0.76

 

 

$

0.71

 

Weighted average shares outstanding—basic and diluted

 

106,516,166

 

 

 

109,272,489

 

 

 

107,266,074

 

 

 

100,993,581

 

Barings BDC, Inc.

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

Nine Months Ended

 

Nine Months Ended

 

September 30, 2023

 

September 30, 2022

Cash flows from operating activities:

 

 

 

Net increase (decrease) in net assets resulting from operations

$

98,089

 

 

$

5,932

 

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:

 

 

 

Purchases of portfolio investments

 

(400,507

)

 

 

(938,653

)

Net cash acquired from mergers (cash consideration paid)

 

—

 

 

 

101,896

 

Transaction costs from mergers

 

—

 

 

 

(8,004

)

Repayments received/sales of portfolio investments

 

273,550

 

 

 

900,343

 

Loan origination and other fees received

 

5,852

 

 

 

15,963

 

Net realized (gain) loss on investments

 

62,142

 

 

 

10,513

 

Net realized (gain) loss on foreign currency transactions

 

(3,743

)

 

 

3,758

 

Net realized (gain) loss on forward currency contracts

 

17,144

 

 

 

(10,468

)

Net unrealized (appreciation) depreciation on investments

 

(58,188

)

 

 

109,553

 

Net unrealized (appreciation) depreciation of CSAs

 

(1,114

)

 

 

10,320

 

Net unrealized (appreciation) depreciation on foreign currency transactions

 

3,406

 

 

 

(37,325

)

Net unrealized (appreciation) depreciation on forward currency contracts

 

(23,143

)

 

 

(15,238

)

Payment-in-kind interest / dividends

 

(18,270

)

 

 

(8,008

)

Amortization of deferred financing fees

 

2,425

 

 

 

2,275

 

Accretion of loan origination and other fees

 

(6,042

)

 

 

(8,579

)

Amortization / accretion of purchased loan premium / discount

 

(1,124

)

 

 

(1,556

)

Payments for derivative contracts

 

(21,459

)

 

 

(5,000

)

Proceeds from derivative contracts

 

4,315

 

 

 

15,468

 

Changes in operating assets and liabilities:

 

 

 

Interest and fees receivable

 

(2,743

)

 

 

(36,252

)

Prepaid expenses and other assets

 

(641

)

 

 

(3,325

)

Accounts payable and accrued liabilities

 

4,264

 

 

 

2,047

 

Interest payable

 

3,727

 

 

 

4,021

 

Net cash provided by (used in) operating activities

 

(62,060

)

 

 

109,681

 

Cash flows from financing activities:

 

 

 

Borrowings under credit facilities

 

67,000

 

 

 

184,657

 

Repayments of credit facilities

 

—

 

 

 

(148,061

)

Financing fees paid

 

(2,403

)

 

 

(1,857

)

Purchases of shares in repurchase plan

 

(10,854

)

 

 

(23,623

)

Cash dividends / distributions paid

 

(81,340

)

 

 

(67,727

)

Net cash provided by (used in) financing activities

 

(27,597

)

 

 

(56,611

)

Net increase (decrease) in cash and foreign currencies

 

(89,657

)

 

 

53,070

 

Cash and foreign currencies, beginning of period

 

139,415

 

 

 

84,253

 

Cash and foreign currencies, end of period

$

49,758

 

 

$

137,323

 

Supplemental Information:

 

 

 

Cash paid for interest

$

54,858

 

 

$

33,035

 

Excise taxes paid during the period

$

1,012

 

 

$

—

 

Supplemental non-cash information

 

 

 

Acquisitions:

 

 

 

Fair value of net assets acquired, net of cash

$

—

 

 

$

(435,811

)

Transaction costs

 

—

 

 

 

2,556

 

Common stock issued in acquisition of net assets

 

—

 

 

 

499,418

 

Credit support agreement

 

—

 

 

 

(44,400

)

Deemed contribution - from Adviser

 

—

 

 

 

27,729

 

Deemed contributions - CSA

 

—

 

 

 

44,400

 

Barings BDC, Inc.

Unaudited Reconciliation of Debt to Net Debt and Calculation of Net Debt-to-Equity Ratio

(in thousands, except ratios)

         

 

 

As of September 30, 2023

 

As of June 30, 2023

 

As of March 31, 2023

 

As of December 31, 2022

Total debt (principal)

 

$

1,521,126

 

 

$

1,497,087

 

 

$

1,494,112

 

 

$

1,454,144

 

minus: Cash and foreign currencies (excluding restricted cash)

 

 

(49,758

)

 

 

(80,330

)

 

 

(55,395

)

 

 

(139,415

)

plus: Payable from unsettled transactions

 

 

424

 

 

 

135

 

 

 

649

 

 

 

35,565

 

minus: Receivable from unsettled transactions

 

 

(53,961

)

 

 

(27,780

)

 

 

(1,519

)

 

 

(19,972

)

Total net debt(1)

 

$

1,417,831

 

 

$

1,389,112

 

 

$

1,437,847

 

 

$

1,330,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net assets

 

$

1,198,224

 

 

$

1,207,597

 

 

$

1,205,001

 

 

$

1,192,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net debt-to-equity ratio(1)

 

1.18 x

 

 

1.15 x

 

 

1.19 x

 

 

1.12 x

           

(1) See the “Non-GAAP Financial Measures” section of this press release.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231109419548/en/

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Investor Relations: BDCinvestorrelations@barings.com, 888-401-1088