BBDC Barings BDC Inc

Barings BDC, Inc. (NYSE: BBDC) (“Barings BDC” or the “Company”) today reported its financial and operating results for the fourth quarter and full year 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

December 31, 2023

Three Months Ended

September 30, 2023

Full Year Ended

December 31, 2023

(dollars in millions, except per share data)

Total

Amount

Per

Share(1)

Total

Amount

Per

Share(2)

Total

Amount

Per

Share(3)

Net investment income

$33.4

$0.31

$33.3

$0.31

$127.8

$1.19

Net realized gains (losses)

$12.8

$0.12

$(17.3)

$(0.16)

$(62.8)

$(0.58)

Net unrealized appreciation (depreciation)

$(16.4)

$(0.15)

$2.0

$0.02

$62.6

$0.59

Net increase in net assets resulting from operations

$29.9

$0.28

$18.3

$0.17

$128.0

$1.20

Dividends paid

 

$0.26

 

$0.26

 

$1.02

(1)

Based on weighted average shares outstanding during the period of 106,371,835.

(2)

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

(3)

Based on weighted average shares outstanding during the period of 107,040,677.

Investment Portfolio and Balance Sheet

 

 

 

(dollars in millions, except per share data)

As of

December 31,

2023

As of

September 30,

2023

As of

December 31,

2022

Investment portfolio at fair value

$2,488.7

$2,521.6

$2,448.9

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

10.5 %

10.6 %

9.7 %

 

 

 

 

Total assets

$2,677.5

$2,741.7

$2,710.0

Debt outstanding (principal)

$1,444.9

$1,521.1

$1,454.1

Total net assets (equity)

$1,196.6

$1,198.2

$1,192.3

Net asset value per share

$11.28

$11.25

$11.05

Debt-to-equity ratio

1.21x

1.27x

1.22x

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

1.15x

1.18x

1.12x

Fourth Quarter 2023 Results

Commenting on the quarter, Eric Lloyd, Chief Executive Officer of Barings BDC, stated, “BBDC fourth quarter results speak to the strength of our core middle market loan portfolio and our defensive approach to underwriting. In the fourth quarter, we out-earned the dividend by approximately 20%, increased net investment income from the third quarter and repurchased 449,096 shares as part of our share repurchase program. As we enter 2024, we remain focused on delivering strong risk-adjusted returns to our shareholders.”

During the three months ended December 31, 2023, the Company reported total investment income of $75.8 million, net investment income of $33.4 million, or $0.31 per share, and a net increase in net assets resulting from operations of $29.9 million, or $0.28 per share.

Net asset value (“NAV”) per share as of December 31, 2023 was $11.28, as compared to $11.25 as of September 30, 2023. The increase in NAV per share from September 30, 2023 to December 31, 2023 was primarily attributed to a net realized gain on investments and foreign currency transactions of $0.12 per share, net investment income exceeding the Company’s fourth quarter dividend by $0.05 per share and the accretive impact of share repurchases of $0.01 per share, partially offset by net unrealized depreciation on the Company’s investment portfolio, credit support agreements and foreign currency transactions of approximately $0.15 per share.

Recent Portfolio Activity

During the three months ended December 31, 2023, the Company made 14 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. During the three months ended December 31, 2023, the Company had seven loans repaid totaling $64.8 million and received $37.2 million of portfolio company principal payments. The Company received $3.0 million of return of capital from its joint ventures and equity investments. In addition, the Company received $65.8 million for the sale of loans, recognizing a net realized loss on these transactions of $1.4 million, and sold $68.7 million of middle-market portfolio debt investments to its joint ventures, realizing a gain on these transactions of $0.4 million. Investments in two portfolio companies were restructured, which resulted in a gain of $0.4 million. Lastly, the Company received proceeds related to the sale of equity investments totaling $5.1 million and recognized a net realized gain on such sales totaling $3.2 million.

During the three months ended December 31, 2023, the Company recorded net unrealized depreciation totaling $16.4 million, consisting of unrealized depreciation related to foreign currency transactions of $10.0 million and net unrealized depreciation related to forward currency contracts of $19.2 million, net of unrealized appreciation of $0.5 million on the MVC credit support agreement with Barings, unrealized appreciation of $3.1 million on the Sierra credit support agreement with Barings, net unrealized appreciation on the Company’s current portfolio of $5.8 million, unrealized appreciation reclassification adjustments of $1.9 million related to the net realized losses on the sales / repayments of certain investments and a deferred tax asset of $1.5 million. The net unrealized appreciation on the Company’s current portfolio of $5.8 million was driven primarily by the impact of foreign currency exchange rates on investments of $26.1 million, partially offset by the credit or fundamental performance of investments of $18.6 million and broad market moves for investments of $1.7 million.

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.

On February 12, 2024, the Company issued $300.0 million in aggregate principal amount of senior unsecured notes that mature on February 15, 2029 and bear interest at a rate of 7.000% per annum (the “February 2029 Notes”). The February 2029 Notes pay interest semi-annually and all principal is due upon maturity. The February 2029 Notes may be redeemed in whole or in part at any time at the Company’s option at a redemption price equal to par plus a “make whole” premium, if applicable, as determined pursuant to the indenture governing the February 2029 Notes, and any accrued and unpaid interest. The February 2029 Notes were issued at a public offering price of 98.948% of the principal amount thereof.

Commenting on the Company's liquidity position, Elizabeth Murray, Chief Financial Officer, stated, “During the first quarter, BBDC continued to improve its liquidity position and financing profile through the issuance of $300.0 million in 5-year unsecured notes at a 7.00% coupon. This unsecured debt issuance enhances operational stability, allows us to optimize our liability structure and expands our ladder of maturities out to 2029.”

Share Repurchase Program

On February 23, 2023, the Board authorized a 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 February 22, 2024, the Company had repurchased a total of 1,849,096 shares of its common stock in the open market under the authorized program at an average price of $7.99 per share, including broker commissions.

On February 22, 2024, the Board authorized a new 12-month share repurchase program. Under the program, the Company may repurchase, during the 12-month period commencing on March 1, 2024, 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, 2025, 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.

Dividend Information

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

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

First Quarter 2024 Dividend:

Amount per share:

$0.26 

Record date:

March 6, 2024 

Payment date:

March 13, 2024 

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 December 31, 2023, the Company made approximately $41.9 million of new commitments, of which $35.3 million closed and funded. The $35.3 million of investments consist of $35.0 million of first lien senior secured debt investments and $0.3 million of equity investments. The weighted average yield of the debt investments was 11.5%. In addition, the Company funded $15.7 million of previously committed revolvers and delayed draw term loans.

Conference Call to Discuss Fourth Quarter and Full Year 2023 Results

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.

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 $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.

Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

December 31,

 

 

 

2023

 

 

 

2022

 

Assets:

 

 

 

 

Investments at fair value:

 

 

 

 

Non-Control / Non-Affiliate investments (cost of $2,053,548 and $2,191,345 as of December 31, 2023 and 2022, respectively)

 

$

1,995,372

 

 

$

2,052,614

 

Affiliate investments (cost of $378,865 and $275,482 as of December 31, 2023 and 2022, respectively)

 

 

402,423

 

 

 

289,993

 

Control investments (cost of $103,163 and $95,571 as of December 31, 2023 and 2022, respectively)

 

 

90,920

 

 

 

106,328

 

Total investments at fair value

 

 

2,488,715

 

 

 

2,448,935

 

Cash

 

 

57,187

 

 

 

96,160

 

Foreign currencies (cost of $13,023 and $42,627 as of December 31, 2023 and 2022, respectively)

 

 

13,341

 

 

 

43,255

 

Interest and fees receivable

 

 

51,598

 

 

 

42,738

 

Prepaid expenses and other assets

 

 

3,564

 

 

 

1,079

 

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

 

 

57,800

 

 

 

53,086

 

Derivative assets

 

 

1

 

 

 

1,508

 

Deferred financing fees

 

 

3,948

 

 

 

3,224

 

Receivable from unsettled transactions

 

 

1,299

 

 

 

19,972

 

Total assets

 

$

2,677,453

 

 

$

2,709,957

 

Liabilities:

 

 

 

 

Accounts payable and accrued liabilities

 

$

2,950

 

 

$

971

 

Interest payable

 

 

8,450

 

 

 

7,635

 

Administrative fees payable

 

 

536

 

 

 

677

 

Base management fees payable

 

 

8,347

 

 

 

7,981

 

Incentive management fees payable

 

 

7,737

 

 

 

—

 

Derivative liabilities

 

 

11,265

 

 

 

16,677

 

Payable from unsettled transactions

 

 

1,112

 

 

 

35,565

 

Borrowings under credit facilities

 

 

719,914

 

 

 

729,144

 

Notes payable (net of deferred financing fees)

 

 

720,583

 

 

 

718,978

 

Total liabilities

 

 

1,480,894

 

 

 

1,517,628

 

Commitments and contingencies

 

 

 

 

Net Assets:

 

 

 

 

Common stock, $0.001 par value per share (150,000,000 shares authorized, 106,067,070 and 107,916,166 shares issued and outstanding as of December 31, 2023 and 2022, respectively)

 

 

106

 

 

 

108

 

Additional paid-in capital

 

 

1,854,457

 

 

 

1,855,975

 

Total distributable earnings (loss)

 

 

(658,004

)

 

 

(663,754

)

Total net assets

 

 

1,196,559

 

 

 

1,192,329

 

Total liabilities and net assets

 

$

2,677,453

 

 

$

2,709,957

 

Net asset value per share

 

$

11.28

 

 

$

11.05

 

 

Barings BDC, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)

 

 

 

Three Months

Ended (Unaudited)

 

Full Year

Ended

 

 

December 31,

2023

 

September 30,

2023

 

December 31,

2023

Investment income:

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

$

56,232

 

$

54,365

 

 

$

216,326

Affiliate investments

 

 

760

 

 

 

576

 

 

 

2,175

 

Control investments

 

 

77

 

 

 

464

 

 

 

1,288

 

Total interest income

 

 

57,069

 

 

 

55,405

 

 

 

219,789

 

Dividend income:

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

 

1,428

 

 

 

897

 

 

 

3,983

 

Affiliate investments

 

 

8,849

 

 

 

7,618

 

 

 

32,934

 

Total dividend income

 

 

10,277

 

 

 

8,515

 

 

 

36,917

 

Fee and other income:

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

 

3,094

 

 

 

2,544

 

 

 

12,951

 

Affiliate investments

 

 

46

 

 

 

88

 

 

 

337

 

Control investments

 

 

12

 

 

 

18

 

 

 

113

 

Total fee and other income

 

 

3,152

 

 

 

2,650

 

 

 

13,401

 

Payment-in-kind interest income:

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

 

3,646

 

 

 

3,317

 

 

 

15,280

 

Affiliate investments

 

 

273

 

 

 

412

 

 

 

936

 

Control investments

 

 

1,166

 

 

 

250

 

 

 

1,912

 

Total payment-in-kind interest income

 

 

5,085

 

 

 

3,979

 

 

 

18,128

 

Interest income from cash

 

 

265

 

 

 

297

 

 

 

966

 

Total investment income

 

 

75,848

 

 

 

70,846

 

 

 

289,201

 

Operating expenses:

 

 

 

 

 

 

Interest and other financing fees

 

 

22,755

 

 

 

21,829

 

 

 

84,711

 

Base management fee

 

 

8,347

 

 

 

8,315

 

 

 

32,649

 

Incentive management fees

 

 

7,737

 

 

 

4,618

 

 

 

32,046

 

General and administrative expenses

 

 

2,438

 

 

 

2,363

 

 

 

9,984

 

Total operating expenses

 

 

41,277

 

 

 

37,125

 

 

 

159,390

 

Net investment income before taxes

 

 

34,571

 

 

 

33,721

 

 

 

129,811

 

Income taxes, including excise tax expense

 

 

1,200

 

 

 

412

 

 

 

2,007

 

Net investment income after taxes

 

$

33,371

 

 

$

33,309

 

 

$

127,804

 

 

Barings BDC, Inc.

Consolidated Statements of Operations - (Continued)

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

Three Months

Ended (Unaudited)

 

Full Year

Ended

 

 

December 31,

2023

 

September 30,

2023

 

December 31,

2023

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

 

$

2,673

 

 

$

(16,696

)

 

$

(59,469

)

Affiliate investments

 

 

(64

)

 

 

—

 

 

 

(64

)

Net realized gains (losses) on investments

 

 

2,609

 

 

 

(16,696

)

 

 

(59,533

)

Foreign currency transactions

 

 

416

 

 

 

(330

)

 

 

4,160

 

Forward currency contracts

 

 

9,768

 

 

 

(234

)

 

 

(7,377

)

Net realized gains (losses)

 

 

12,793

 

 

 

(17,260

)

 

 

(62,750

)

Net unrealized appreciation (depreciation):

 

 

 

 

 

 

Non-Control / Non-Affiliate investments

 

 

21,026

 

 

 

9,336

 

 

 

83,134

 

Affiliate investments

 

 

(6,486

)

 

 

184

 

 

 

7,260

 

Control investments

 

 

(5,334

)

 

 

(15,999

)

 

 

(23,000

)

Net unrealized appreciation (depreciation) on investments

 

 

9,206

 

 

 

(6,479

)

 

 

67,394

 

Credit support agreements

 

 

3,600

 

 

 

(6,450

)

 

 

4,714

 

Foreign currency transactions

 

 

(9,983

)

 

 

7,560

 

 

 

(13,389

)

Forward currency contracts

 

 

(19,238

)

 

 

7,379

 

 

 

3,905

 

Net unrealized appreciation (depreciation)

 

 

(16,415

)

 

 

2,010

 

 

 

62,624

 

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

 

 

(3,622

)

 

 

(15,250

)

 

 

(126

)

Benefit from (provision for) taxes

 

 

160

 

 

 

262

 

 

 

321

 

Net increase (decrease) in net assets resulting from operations

 

$

29,909

 

 

$

18,321

 

 

$

127,999

 

Net investment income per share — basic and diluted

 

$

0.31

 

 

$

0.31

 

 

$

1.19

 

Net increase (decrease) in net assets resulting from operations per

share — basic and diluted

 

$

0.28

 

 

$

0.17

 

 

$

1.20

 

Dividends / distributions per share:

 

 

 

 

 

 

Total dividends/distributions per share

 

$

0.26

 

 

$

0.26

 

 

$

1.02

 

Weighted average number of shares outstanding — basic and diluted

 

 

106,371,835

 

 

 

106,516,166

 

 

 

107,040,677

 

 

Barings BDC, Inc.

Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

127,999

 

 

$

4,681

 

 

$

77,685

 

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

 

 

(614,648

)

 

 

(1,162,247

)

 

 

(1,461,057

)

Net cash acquired from Sierra merger (cash consideration paid)

 

 

—

 

 

 

101,896

 

 

 

—

 

Transaction costs from Sierra merger

 

 

—

 

 

 

(8,127

)

 

 

—

 

Repayments received / sales of portfolio investments

 

 

593,505

 

 

 

1,041,370

 

 

 

943,867

 

Purchases of short-term investments

 

 

—

 

 

 

—

 

 

 

(297,561

)

Sales of short-term investments

 

 

—

 

 

 

—

 

 

 

363,118

 

Loan origination and other fees received

 

 

8,286

 

 

 

20,120

 

 

 

30,504

 

Net realized (gain) loss on investments

 

 

59,533

 

 

 

11,020

 

 

 

(2,645

)

Net realized (gain) loss on foreign currency transactions

 

 

(4,160

)

 

 

1,259

 

 

 

5,647

 

Net realized (gain) loss on forward currency contracts

 

 

7,377

 

 

 

(25,140

)

 

 

378

 

Net unrealized (appreciation) depreciation on investments

 

 

(67,394

)

 

 

124,189

 

 

 

(3,029

)

Net unrealized (appreciation) depreciation of CSAs

 

 

(4,714

)

 

 

6,714

 

 

 

(1,800

)

Net unrealized (appreciation) depreciation on foreign currency transactions

 

 

13,389

 

 

 

(22,812

)

 

 

(17,014

)

Net unrealized (appreciation) depreciation on forward currency contracts

 

 

(3,905

)

 

 

14,950

 

 

 

(262

)

Payment-in-kind interest / dividends

 

 

(26,540

)

 

 

(12,307

)

 

 

(10,795

)

Amortization of deferred financing fees

 

 

3,285

 

 

 

3,053

 

 

 

1,620

 

Accretion of loan origination and other fees

 

 

(8,425

)

 

 

(11,538

)

 

 

(9,444

)

Amortization / accretion of purchased loan premium / discount

 

 

(1,895

)

 

 

(2,322

)

 

 

(4,646

)

Payments for derivative contracts

 

 

(21,742

)

 

 

(5,628

)

 

 

(2,362

)

Proceeds from derivative contracts

 

 

14,365

 

 

 

30,768

 

 

 

1,984

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Interest and fees receivable

 

 

(6,431

)

 

 

(14,597

)

 

 

(14,472

)

Prepaid expenses and other assets

 

 

(462

)

 

 

(3,214

)

 

 

(2,198

)

Accounts payable and accrued liabilities

 

 

8,710

 

 

 

(7,756

)

 

 

2,446

 

Interest payable

 

 

811

 

 

 

1,935

 

 

 

3,483

 

Net cash provided by (used in) operating activities

 

 

76,944

 

 

 

86,267

 

 

 

(396,553

)

Cash flows from financing activities:

 

 

 

 

 

 

Borrowings under credit facilities

 

 

93,447

 

 

 

244,657

 

 

 

455,732

 

Repayments of credit facilities

 

 

(113,105

)

 

 

(148,061

)

 

 

(506,580

)

Proceeds from notes

 

 

—

 

 

 

—

 

 

 

500,000

 

Financing fees paid

 

 

(2,404

)

 

 

(1,870

)

 

 

(7,274

)

Purchases of shares in repurchase plan

 

 

(14,772

)

 

 

(32,105

)

 

 

—

 

Cash dividends / distributions paid

 

 

(108,997

)

 

 

(93,726

)

 

 

(53,559

)

Net cash provided by (used in) financing activities

 

 

(145,831

)

 

 

(31,105

)

 

 

388,319

 

Net increase (decrease) in cash and foreign currencies

 

 

(68,887

)

 

 

55,162

 

 

 

(8,234

)

Cash and foreign currencies, beginning of year

 

 

139,415

 

 

 

84,253

 

 

 

92,487

 

Cash and foreign currencies, end of year

 

$

70,528

 

 

$

139,415

 

 

$

84,253

 

 

Barings BDC, Inc.

Consolidated Statements of Cash Flows - (Continued)

(in thousands)

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

 

2022

 

 

 

2021

 

Supplemental Information:

 

 

 

 

 

 

Cash paid for interest

 

$

79,409

 

$

50,641

 

 

$

27,203

Excise taxes paid during the period

 

$

1,012

 

 

$

—

 

 

$

71

 

Supplemental non-cash information

 

 

 

 

 

 

Acquisitions:

 

 

 

 

 

 

Fair value of net assets acquired, net of cash

 

 

—

 

 

 

(435,812

)

 

 

—

 

Transaction costs

 

 

—

 

 

 

2,433

 

 

 

—

 

Common stock issued in acquisition of net assets

 

 

—

 

 

 

499,418

 

 

 

—

 

Credit support agreement

 

 

—

 

 

 

(44,400

)

 

 

—

 

Deemed contribution - from Adviser

 

 

—

 

 

 

27,730

 

 

 

—

 

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

December 31,

2023

 

As of

September 30,

2023

 

As of

December 31,

2022

Total debt (principal)

 

$

1,444,914

 

 

$

1,521,126

 

 

$

1,454,144

 

minus: Cash and foreign currencies (excluding restricted cash)

 

 

(70,528

)

 

 

(49,758

)

 

 

(139,415

)

plus: Payable from unsettled transactions

 

 

1,112

 

 

 

424

 

 

 

35,565

 

minus: Receivable from unsettled transactions

 

 

(1,299

)

 

 

(53,961

)

 

 

(19,972

)

Total net debt(1)

 

$

1,374,199

 

 

$

1,417,831

 

 

$

1,330,322

 

 

 

 

 

 

 

 

Total net assets

 

$

1,196,559

 

 

$

1,198,224

 

 

$

1,192,329

 

 

 

 

 

 

 

 

Total net debt-to-equity ratio(1)

 

1.15 x

 

1.18 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/20240222946397/en/

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