Barings BDC, Inc. (NYSE: BBDC) (“Barings BDC” or the “Company”)
today reported preliminary financial and operating results for the
fourth quarter of 2023.
Preliminary Financial and Operating
Results - Three Months Ended December 31, 2023
Per share
highlights
Three Months Ended
December 31, 2023
Estimated range of net investment income
(1)
$0.30 - $0.32
Estimated range of net increase in net
assets resulting from operations (1)
$0.25 - $0.29
Estimated range of net asset value as of
December 31, 2023
$11.25 - $11.29
(1) Based on weighted average shares
outstanding during the period.
Recent Portfolio
Activity
During the three months ended December 31, 2023, the Company
made new investments totaling $100.9 million, made investments in
existing portfolio companies totaling $79.1 million and made a
$12.5 million equity co-investment alongside certain affiliates in
a portfolio company that specializes in providing financing to
plaintiff law firms engaged in mass tort and other civil
litigation. As of December 31, 2023, the fair value of the
Company's total investment portfolio was estimated to be
approximately $2,488.7 million, down from $2,521.6 million as of
September 30, 2023.
Liquidity and
Capitalization
As of December 31, 2023, the Company had cash and foreign
currencies of $70.5 million, $719.9 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 $0.2 million. The Company estimated that the regulatory leverage
ratio was 1.21x and net leverage, which is the Company’s regulatory
leverage net of cash and unsettled transactions, was 1.15x as of
December 31, 2023.
Non-Accruals
As of December 31, 2023, the Company had four portfolio
companies with investments on non-accrual, the aggregate fair value
of which was $37.2 million, which comprised 1.5% of the total fair
value of our portfolio, and the aggregate cost of which was $62.6
million, which comprised 2.5% of the total cost of our portfolio.
As of September 30, 2023, the Company had seven portfolio companies
with investments on non-accrual, the aggregate fair value of which
was $40.1 million, which comprised 1.6% of the total fair value of
our portfolio, and the aggregate cost of which was $64.6 million,
which comprised 2.5% of the total cost of our portfolio.
Subsequent to December 31, 2023, we removed our investment in
Core Scientific, Inc. from non-accrual status in connection with
its January 2024 exit from Chapter 11 bankruptcy and our receipt of
shares of its common stock in exchange for the debt investments
that we previously held in it as a part its bankruptcy
proceedings.
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
January 25, 2024, the Company had repurchased a total of 1,849,096
shares of common stock in the open market under the authorized
program at an average price of $7.99 per share, including brokerage
commissions.
Conference Call to Discuss Fourth
Quarter and Full Year 2023 Results
As previously announced, Barings BDC will report its financial
results for the fourth quarter and full year ended December 31,
2023 on Thursday, February 22, 2024, after the market closes.
Barings BDC has scheduled a conference call to discuss fourth
quarter and full year 2023 financial and operating results for
Friday, February 23, 2024, 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 March 1,
2024. To access the replay, please dial 877-660-6853 or
201-612-7415 and enter conference ID 13743633
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 March 1, 2024.
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.
The preliminary financial estimates provided herein have been
prepared by, and are the responsibility of, management. Neither
KPMG LLP, our independent registered public accounting firm, nor
any other independent accountants have audited, reviewed, compiled,
or performed any procedures with respect to the preliminary
financial data set forth above. Accordingly, KPMG LLP does not
express an opinion or any form of assurance with respect thereto
and assumes no responsibility for, and disclaims any association
with, this information.
The preliminary estimates of fourth quarter and full year 2023
financial information and results furnished above are based on the
Company’s management’s preliminary determinations and current
expectations as of January 25, 2024, and such information is
inherently uncertain. The preliminary estimates are subject to
completion of the Company’s customary year-end closing and review
procedures and third-party audit, including the determination of
the fair value of the Company’s portfolio investments. As a result,
actual results could differ materially from the current preliminary
estimates based on adjustments made during the Company’s year-end
closing and review procedures and third-party audit, and the
Company’s reported information in its Annual Report on Form 10-K
for the year ended December 31, 2023 may differ from this
information, and any such differences may be material. In addition,
the information furnished above does not include all of the
information regarding the Company’s financial condition and results
of operations for the quarter and full year periods ended December
31, 2023 that may be important to readers. As a result, readers are
cautioned not to place undue reliance on the information furnished
in this press release and should view this information in the
context of the Company’s full fourth quarter and full year 2023
results when such results are disclosed by the Company in its
Annual Report on Form 10-K for the year ended December 31, 2023.
The information furnished in this press release is based on the
Company’s management’s current expectations that involve
substantial risks and uncertainties that could cause actual results
to differ materially from the results expressed in, or implied by,
such information.
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 leverage (calculated as (i) total leverage less (ii)
unrestricted cash and foreign currencies (excluding restricted
cash) net of net payables/receivables from unsettled transactions)
and its net leverage-to-equity ratio (calculated as net leverage
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 leverage. 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 $381+ billion* of AUM firm-wide. For
more information, visit www.baringsbdc.com.
About Barings LLC
Barings is a $381+ 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 December 31, 2023
Barings BDC, Inc.
Unaudited Reconciliation of
Preliminary Debt to Net Debt and Calculation of Net Leverage
Ratio
(in thousands, except
ratios)
As of
December 31,
2023
Total debt (principal)
$
1,444,914
minus: Cash and foreign currencies
(excluding restricted cash)
(70,528)
plus: Payable from unsettled
transactions
1,112
minus: Receivable from unsettled
transactions
(1,300)
Total net debt(1)
$
1,374,198
Total estimated net assets(2)
$
1,195,376
Total net leverage ratio(1)
1.15 x
(1) See the “Non-GAAP Financial Measures”
section of this press release.
(2) Based on the mid-point of the net
asset value per share range disclosed above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240125513612/en/
Media Contact: MediaRelations@barings.com
Investor Relations: BDCinvestorrelations@barings.com,
888-401-1088
Barings BDC (NYSE:BBDC)
Historical Stock Chart
Von Dez 2024 bis Jan 2025
Barings BDC (NYSE:BBDC)
Historical Stock Chart
Von Jan 2024 bis Jan 2025
