ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 06-1798488 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) | |
300 South Tryon Street, Suite 2500 Charlotte, North Carolina | 28202 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Emerging growth company | ¨ | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ |
Page | ||
PART I – FINANCIAL INFORMATION | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
September 30, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $1,033,008,048 and $910,150,765 as of September 30, 2018 and December 31, 2017, respectively) | $ | 1,036,189,705 | $ | 831,194,397 | |||
Affiliate investments (cost of $149,099,548 as of December 31, 2017) | — | 147,101,949 | |||||
Control investments (cost of $62,375,532 as of December 31, 2017) | — | 37,988,000 | |||||
Short-term investments (cost of $45,000,000 as of September 30, 2018) | 45,000,000 | — | |||||
Total investments at fair value | 1,081,189,705 | 1,016,284,346 | |||||
Cash and cash equivalents | 116,678,976 | 191,849,697 | |||||
Interest, fees and other receivables | 4,115,713 | 7,806,887 | |||||
Prepaid expenses and other current assets | 2,608,503 | 1,854,861 | |||||
Deferred financing fees | 39,917 | 5,186,672 | |||||
Receivable from unsettled transactions | 172,801,396 | — | |||||
Property and equipment, net | — | 81,149 | |||||
Total assets | $ | 1,377,434,210 | $ | 1,223,063,612 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 1,678,027 | $ | 9,863,209 | |||
Interest payable | 151,864 | 3,997,480 | |||||
Taxes payable | 404,021 | 796,111 | |||||
Deferred income taxes | — | 1,331,528 | |||||
Payable for investments participated | 10,044,000 | — | |||||
Payable from unsettled transactions | 544,174,355 | — | |||||
Borrowings under credit facilities | 210,000,000 | 156,070,484 | |||||
Notes | — | 163,408,301 | |||||
SBA-guaranteed debentures payable | — | 246,321,125 | |||||
Total liabilities | 766,452,267 | 581,788,238 | |||||
Commitments and contingencies (Note 9) | |||||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 51,284,064 and 47,740,832 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively) | 51,284 | 47,741 | |||||
Additional paid-in capital | 880,865,664 | 823,614,881 | |||||
Total distributable earnings (loss) | (269,935,005 | ) | (182,387,248 | ) | |||
Total net assets | 610,981,943 | 641,275,374 | |||||
Total liabilities and net assets | $ | 1,377,434,210 | $ | 1,223,063,612 | |||
Net asset value per share | $ | 11.91 | $ | 13.43 |
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||
Investment income: | |||||||||||||||
Interest income: | |||||||||||||||
Non-Control / Non-Affiliate investments | $ | 8,769,282 | $ | 20,629,534 | $ | 45,282,969 | $ | 62,755,411 | |||||||
Affiliate investments | 669,553 | 3,329,256 | 5,580,051 | 10,580,976 | |||||||||||
Control investments | 91,678 | 281,147 | 644,805 | 861,294 | |||||||||||
Short-term investments | 535,153 | — | 535,153 | — | |||||||||||
Total interest income | 10,065,666 | 24,239,937 | 52,042,978 | 74,197,681 | |||||||||||
Dividend income: | |||||||||||||||
Non-Control / Non-Affiliate investments | — | 57,515 | 252,369 | 1,318,748 | |||||||||||
Affiliate investments | 303,062 | 137,470 | 642,187 | 241,714 | |||||||||||
Total dividend income | 303,062 | 194,985 | 894,556 | 1,560,462 | |||||||||||
Fee and other income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 304,835 | 2,104,631 | 4,225,905 | 4,980,285 | |||||||||||
Affiliate investments | 72,891 | 479,802 | 601,571 | 951,091 | |||||||||||
Control investments | — | 107,292 | 107,819 | 307,292 | |||||||||||
Total fee and other income | 377,726 | 2,691,725 | 4,935,295 | 6,238,668 | |||||||||||
Payment-in-kind interest income: | |||||||||||||||
Non-Control / Non-Affiliate investments | 366,344 | 1,963,525 | 2,814,474 | 6,756,172 | |||||||||||
Affiliate investments | 136,603 | 622,613 | 962,080 | 2,118,550 | |||||||||||
Total payment-in-kind interest income | 502,947 | 2,586,138 | 3,776,554 | 8,874,722 | |||||||||||
Interest income from cash and cash equivalents | 822,995 | 175,273 | 1,972,591 | 421,062 | |||||||||||
Total investment income | 12,072,396 | 29,888,058 | 63,621,974 | 91,292,595 | |||||||||||
Operating expenses: | |||||||||||||||
Interest and other financing fees | 4,369,994 | 7,394,241 | 19,304,877 | 21,418,371 | |||||||||||
Base management fee (Note 2) | 1,546,675 | — | 1,546,675 | — | |||||||||||
Compensation expenses | 29,435,834 | 4,323,708 | 37,371,342 | 12,149,527 | |||||||||||
General and administrative expenses (Note 2) | 8,766,516 | 1,019,192 | 14,659,656 | 3,403,385 | |||||||||||
Total operating expenses | 44,119,019 | 12,737,141 | 72,882,550 | 36,971,283 | |||||||||||
Base management fee waived (Note 2) | (993,317 | ) | — | (993,317 | ) | — | |||||||||
Net operating expenses | 43,125,702 | 12,737,141 | 71,889,233 | 36,971,283 | |||||||||||
Net investment income (loss) | (31,053,306 | ) | 17,150,917 | (8,267,259 | ) | 54,321,312 | |||||||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: | |||||||||||||||
Net realized gains (losses): | |||||||||||||||
Non-Control / Non-Affiliate investments | (92,881,851 | ) | 4,066,263 | (134,191,161 | ) | (3,036,048 | ) | ||||||||
Affiliate investments | 7,586,818 | (4,443,680 | ) | 9,939,330 | (999,336 | ) | |||||||||
Control investments | (31,916,157 | ) | (8,503,633 | ) | (38,542,704 | ) | (12,995,073 | ) | |||||||
Net realized losses on investments | (117,211,190 | ) | (8,881,050 | ) | (162,794,535 | ) | (17,030,457 | ) | |||||||
Foreign currency borrowings | — | — | 1,081,211 | — | |||||||||||
Net realized losses | (117,211,190 | ) | (8,881,050 | ) | (161,713,324 | ) | (17,030,457 | ) | |||||||
Net unrealized appreciation (depreciation): | |||||||||||||||
Non-Control / Non-Affiliate investments | 50,825,657 | (64,601,974 | ) | 82,978,562 | (70,083,204 | ) | |||||||||
Affiliate investments | (15,887,729 | ) | (2,313,261 | ) | 3,197,568 | (11,651,017 | ) | ||||||||
Control investments | 22,717,499 | 2,047,411 | 24,387,532 | (5,981,149 | ) | ||||||||||
Net unrealized appreciation (depreciation) on investments | 57,655,427 | (64,867,824 | ) | 110,563,662 | (87,715,370 | ) | |||||||||
Foreign currency borrowings | — | (897,734 | ) | (863,980 | ) | (1,601,501 | ) | ||||||||
Net unrealized appreciation (depreciation) | 57,655,427 | (65,765,558 | ) | 109,699,682 | (89,316,871 | ) | |||||||||
Net realized and unrealized losses on investments and foreign currency borrowings | (59,555,763 | ) | (74,646,608 | ) | (52,013,642 | ) | (106,347,328 | ) | |||||||
Loss on extinguishment of debt | (10,507,183 | ) | — | (10,507,183 | ) | — | |||||||||
Provision for taxes | (274,132 | ) | (985 | ) | (813,767 | ) | (305,166 | ) | |||||||
Net decrease in net assets resulting from operations | $ | (101,390,384 | ) | $ | (57,496,676 | ) | $ | (71,601,851 | ) | $ | (52,331,182 | ) | |||
Net investment income (loss) per share—basic and diluted | $ | (0.59 | ) | $ | 0.36 | $ | (0.17 | ) | $ | 1.18 | |||||
Net decrease in net assets resulting from operations per share—basic and diluted | $ | (1.94 | ) | $ | (1.20 | ) | $ | (1.45 | ) | $ | (1.14 | ) | |||
Dividends/distributions per share: | |||||||||||||||
Regular quarterly dividends/distributions | $ | 0.03 | $ | 0.45 | $ | 0.33 | $ | 1.35 | |||||||
Total dividends/distributions per share | $ | 0.03 | $ | 0.45 | $ | 0.33 | $ | 1.35 | |||||||
Weighted average shares outstanding—basic and diluted | 52,300,269 | 47,743,990 | 49,429,678 | 46,079,139 |
Common Stock | Additional Paid-In Capital | Total Distributable Earnings (Loss) | Total Net Assets | |||||||||||||||
Number of Shares | Par Value | |||||||||||||||||
Balance, December 31, 2016 | 40,401,292 | $ | 40,401 | $ | 686,835,054 | $ | (75,719,197 | ) | $ | 611,156,258 | ||||||||
Net investment income | — | — | — | 54,321,312 | 54,321,312 | |||||||||||||
Stock-based compensation | — | — | 4,499,374 | — | 4,499,374 | |||||||||||||
Net realized gain on investments | — | — | — | 1,694,109 | 1,694,109 | |||||||||||||
Net unrealized depreciation of investments / foreign currency | — | — | — | (108,041,437 | ) | (108,041,437 | ) | |||||||||||
Provision for taxes | — | — | — | (305,166 | ) | (305,166 | ) | |||||||||||
Dividends / distributions | 91,366 | 91 | 1,637,467 | (64,384,441 | ) | (62,746,883 | ) | |||||||||||
Public offering of common stock | 7,000,000 | 7,000 | 131,989,144 | — | 131,996,144 | |||||||||||||
Issuance of restricted stock | 360,470 | 361 | (361 | ) | — | — | ||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (112,296 | ) | (112 | ) | (2,180,183 | ) | — | (2,180,295 | ) | |||||||||
Balance, September 30, 2017 | 47,740,832 | $ | 47,741 | $ | 822,780,495 | $ | (192,434,820 | ) | $ | 630,393,416 |
Common Stock | Additional Paid-In Capital | Total Distributable Earnings (Loss) | Total Net Assets | |||||||||||||||
Number of Shares | Par Value | |||||||||||||||||
Balance, December 31, 2017 | 47,740,832 | $ | 47,741 | $ | 823,614,881 | $ | (182,387,248 | ) | $ | 641,275,374 | ||||||||
Net investment loss | — | — | — | (8,267,259 | ) | (8,267,259 | ) | |||||||||||
Stock-based compensation | — | — | 14,229,633 | — | 14,229,633 | |||||||||||||
Net realized loss on investments / foreign currency | — | — | — | (51,044,174 | ) | (51,044,174 | ) | |||||||||||
Net unrealized depreciation of investments / foreign currency | — | — | — | (969,468 | ) | (969,468 | ) | |||||||||||
Loss on extinguishment of debt | — | — | — | (10,507,183 | ) | (10,507,183 | ) | |||||||||||
Provision for taxes | — | — | — | (813,767 | ) | (813,767 | ) | |||||||||||
Dividends / distributions | — | — | — | (15,945,906 | ) | (15,945,906 | ) | |||||||||||
Issuance of shares to Adviser | 8,529,917 | 8,530 | 99,831,315 | — | 99,839,845 | |||||||||||||
Purchase of shares in tender offer | (4,901,961 | ) | (4,902 | ) | (50,791,422 | ) | — | (50,796,324 | ) | |||||||||
Issuance of restricted stock | 435,106 | 435 | (435 | ) | — | — | ||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (519,830 | ) | (520 | ) | (6,018,308 | ) | — | (6,018,828 | ) | |||||||||
Balance, September 30, 2018 | 51,284,064 | $ | 51,284 | $ | 880,865,664 | $ | (269,935,005 | ) | $ | 610,981,943 |
Nine Months Ended | Nine Months Ended | ||||||
September 30, 2018 | September 30, 2017 | ||||||
Cash flows from operating activities: | |||||||
Net decrease in net assets resulting from operations | $ | (71,601,851 | ) | $ | (52,331,182 | ) | |
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by (used in) operating activities: | |||||||
Purchases of portfolio investments | (789,746,110 | ) | (391,502,625 | ) | |||
Repayments received/sales of portfolio investments | 314,112,490 | 231,730,067 | |||||
Proceeds from sale of portfolio to Asset Buyer | 793,281,722 | — | |||||
Purchases of short-term investments | (730,233,448 | ) | — | ||||
Sales of short-term investments | 685,233,448 | — | |||||
Loan origination and other fees received | 1,212,914 | 5,733,890 | |||||
Net realized loss on investments | 162,794,535 | 17,030,457 | |||||
Net realized gain on foreign currency borrowings | (1,081,211 | ) | — | ||||
Net unrealized (appreciation) depreciation on investments | (109,232,129 | ) | 88,572,326 | ||||
Net unrealized depreciation on foreign currency borrowings | 863,980 | 1,601,501 | |||||
Deferred income taxes | (1,331,528 | ) | (856,956 | ) | |||
Payment-in-kind interest accrued, net of payments received | 120,933 | (519,326 | ) | ||||
Amortization of deferred financing fees | 1,710,047 | 1,857,810 | |||||
Loss on extinguishment of debt | 10,507,183 | — | |||||
Loss on disposal of property and equipment | 22,236 | — | |||||
Accretion of loan origination and other fees | (3,205,327 | ) | (3,863,096 | ) | |||
Amortization/accretion of purchased loan premium/discount | (37,486 | ) | (466,191 | ) | |||
Depreciation expense | 27,414 | 51,275 | |||||
Stock-based compensation | 14,229,633 | 4,499,374 | |||||
Changes in operating assets and liabilities: | |||||||
Interest, fees and other receivables | (4,098,768 | ) | 445,407 | ||||
Prepaid expenses and other current assets | (753,642 | ) | (168,424 | ) | |||
Accounts payable and accrued liabilities | (8,187,183 | ) | (1,257,004 | ) | |||
Interest payable | (3,845,616 | ) | (2,273,276 | ) | |||
Taxes payable | (392,090 | ) | (489,691 | ) | |||
Net cash provided by (used in) operating activities | 260,370,146 | (102,205,664 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | — | (35,976 | ) | ||||
Proceeds from sales of property and equipment | 31,499 | — | |||||
Net cash provided by (used in) investing activities | 31,499 | (35,976 | ) | ||||
Cash flows from financing activities: | |||||||
Repayments of SBA-guaranteed debentures payable | (250,000,000 | ) | — | ||||
Borrowings under credit facilities | 214,100,000 | 106,700,000 | |||||
Repayments of credit facilities | (159,953,253 | ) | (94,194,139 | ) | |||
Redemption of notes | (166,750,000 | ) | — | ||||
Financing fees paid | (47,900 | ) | (3,417,094 | ) | |||
Net proceeds related to issuance of common stock | 99,839,845 | 131,996,144 | |||||
Purchase of common stock in tender offer | (50,796,324 | ) | — | ||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (6,018,828 | ) | (2,180,295 | ) | |||
Cash dividends/distributions paid | (15,945,906 | ) | (62,746,883 | ) | |||
Net cash provided by (used in) financing activities | (335,572,366 | ) | 76,157,733 | ||||
Net decrease in cash and cash equivalents | (75,170,721 | ) | (26,083,907 | ) | |||
Cash and cash equivalents, beginning of period | 191,849,697 | 107,087,663 | |||||
Cash and cash equivalents, end of period | $ | 116,678,976 | $ | 81,003,756 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 19,845,947 | $ | 20,955,808 | |||
Summary of non-cash financing transactions: | |||||||
Dividends/distributions paid through DRIP share issuances | $ | — | $ | 1,637,558 |
BARINGS BDC, INC. Unaudited Consolidated Schedule of Investments September 30, 2018 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(5) | Principal Amount | Cost | Fair Value | |||||||||||
Non–Control / Non–Affiliate Investments: | ||||||||||||||||
24 Hour Fitness Worldwide, Inc. (1.6%)* (4) | Leisure Facilities | Senior Secured Term Loan B (LIBOR + 3.5%, 5.7% Cash, Due 05/25) | $ | 9,476,250 | $ | 9,570,191 | $ | 9,535,476 | ||||||||
9,476,250 | 9,570,191 | 9,535,476 | ||||||||||||||
ABC Supply Holding Corp (1.0%)* | Building Products | Senior Secured Term Loan B (LIBOR + 2.0%, 4.2% Cash, Due 10/23) | 6,048,321 | 6,023,972 | 6,028,361 | |||||||||||
6,048,321 | 6,023,972 | 6,028,361 | ||||||||||||||
Acrisure, LLC (1.6%)* (4) | Property & Casualty Insurance | Senior Secured Term Loan B (LIBOR + 4.25%, 6.6% Cash, Due 11/23) | 9,974,811 | 10,039,967 | 10,003,937 | |||||||||||
9,974,811 | 10,039,967 | 10,003,937 | ||||||||||||||
ADMI Corp. (0.6%)* (4) | Health Care Services | Senior Secured Term Loan B (LIBOR + 3.25%, 5.5% Cash, Due 04/25) | 3,491,250 | 3,504,342 | 3,506,961 | |||||||||||
3,491,250 | 3,504,342 | 3,506,961 | ||||||||||||||
AKKR-MVSC Member, LLC (0.2%)* (2) (6) | Provider of EVR Services | Class A Units (1,000,000 units) | 1,092,964 | 1,344,000 | ||||||||||||
1,092,964 | 1,344,000 | |||||||||||||||
AlixPartners LLP (1.5%)* (4) | Investment Banking & Brokerage | Senior Secured Term Loan B (LIBOR + 2.75%, 5.0% Cash, Due 04/24) | 8,079,494 | 8,126,093 | 8,113,185 | |||||||||||
8,079,494 | 8,126,093 | 8,113,185 | ||||||||||||||
Alliant Holdings LP (1.0%)* (4) | Property & Casualty Insurance | Senior Secured Term Loan B (LIBOR + 3.0%, 5.1% Cash, Due 05/25) | 5,985,000 | 5,994,258 | 6,003,194 | |||||||||||
5,985,000 | 5,994,258 | 6,003,194 | ||||||||||||||
American Airlines Group Inc. (2.2%)* (3) (4) | Airport Services | Senior Secured Term Loan B (LIBOR + 1.75%, 4.0% Cash, Due 06/25) | 13,985,519 | 13,722,404 | 13,708,326 | |||||||||||
13,985,519 | 13,722,404 | 13,708,326 | ||||||||||||||
Amscan Holdings Inc. (0.5%)* (3) (4) | Specialty Stores | Senior Secured Term Loan B (LIBOR + 2.75%, 5.1% Cash, Due 08/22) | 2,988,574 | 3,010,988 | 3,009,374 | |||||||||||
2,988,574 | 3,010,988 | 3,009,374 | ||||||||||||||
Apex Tool Group, LLC (1.2%)* (4) | Industrial Machinery | Senior Secured Term Loan B (LIBOR + 3.75%, 6.0% Cash, Due 02/22) | 7,376,843 | 7,408,432 | 7,395,285 | |||||||||||
7,376,843 | 7,408,432 | 7,395,285 | ||||||||||||||
Applied Systems Inc. (1.5%)* (4) | Application Software | First Lien Term Loan (LIBOR + 3.25%, 5.4% Cash, Due 09/24) | 9,336,645 | 9,406,670 | 9,383,329 | |||||||||||
9,336,645 | 9,406,670 | 9,383,329 | ||||||||||||||
Ascend Learning, LLC (1.3%)* (4) | IT Consulting & Other Services | Senior Secured Term Loan B (LIBOR + 3.0%, 5.2% Cash, Due 07/24) | 7,984,887 | 8,007,349 | 7,987,362 | |||||||||||
7,984,887 | 8,007,349 | 7,987,362 | ||||||||||||||
AssuredPartners Capital, Inc. (2.0%)* (4) | Property & Casualty Insurance | First Lien Term Loan (LIBOR + 3.25%, 5.5% Cash, Due 10/24) | 11,985,986 | 12,008,911 | 12,010,917 | |||||||||||
11,985,986 | 12,008,911 | 12,010,917 | ||||||||||||||
Aurora Capital Group (0.6%)* (4) (6) | Internet Software & Services | Senior Secured Term Loan B (LIBOR + 3.25%, 5.6% Cash, Due 09/25) | 3,739,351 | 3,751,877 | 3,762,721 | |||||||||||
3,739,351 | 3,751,877 | 3,762,721 | ||||||||||||||
Avantor, Inc. (2.5%)* (4) | Health Care Equipment | Senior Secured Term Loan B (LIBOR + 4.0%, 6.2% Cash, Due 11/24) | 14,962,312 | 15,167,708 | 15,137,670 | |||||||||||
14,962,312 | 15,167,708 | 15,137,670 | ||||||||||||||
AVSC Holding Corp. (1.3%)* (4) | Advertising | First Lien Term Loan (LIBOR + 3.25%, 5.6% Cash, Due 03/25) | 7,979,950 | 7,935,493 | 7,920,100 | |||||||||||
7,979,950 | 7,935,493 | 7,920,100 | ||||||||||||||
Bausch Health Companies Inc. (1.7%)* (3) (4) | Health Care Services | Senior Secured Term Loan B (LIBOR + 3.0%, 5.1% Cash, Due 05/25) | 10,367,089 | 10,421,533 | 10,416,125 | |||||||||||
10,367,089 | 10,421,533 | 10,416,125 | ||||||||||||||
BCPE Eagle Buyer LLC (0.1%)* (4 (6) | Health Care Facilities | First Lien Term Loan (LIBOR + 4.25%, 6.5% Cash, Due 03/24) | 492,500 | 485,113 | 483,881 | |||||||||||
492,500 | 485,113 | 483,881 | ||||||||||||||
BARINGS BDC, INC. Unaudited Consolidated Schedule of Investments — (Continued) September 30, 2018 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(5) | Principal Amount | Cost | Fair Value | |||||||||||
Berlin Packaging LLC (1.4%)* (4) | Forest Products /Containers | First Lien Term Loan (LIBOR + 3.0%, 5.2% Cash, Due 11/25) | $ | 8,478,750 | $ | 8,499,257 | $ | 8,474,765 | ||||||||
8,478,750 | 8,499,257 | 8,474,765 | ||||||||||||||
Brookfield WEC Holdings Inc. (1.8%)* (4) | Construction & Engineering | First Lien Term Loan (LIBOR + 3.75%, 6.0% Cash, Due 08/25) | 11,073,333 | 11,147,663 | 11,206,213 | |||||||||||
11,073,333 | 11,147,663 | 11,206,213 | ||||||||||||||
BWAY Holding Company (2.3%)* (4) | Metal & Glass Containers | Senior Secured Term Loan B (LIBOR + 3.25%, 5.6% Cash, Due 04/24) | 13,964,647 | 13,938,758 | 13,947,191 | |||||||||||
13,964,647 | 13,938,758 | 13,947,191 | ||||||||||||||
Cadent (fka Cross MediaWorks) (1.3%)* (6) | Media & Entertainment | Senior Secured Term Loan (PRIME + 5.5%, 9.8% Cash, Due 09/23) | 7,966,133 | 7,887,086 | 7,889,926 | |||||||||||
7,966,133 | 7,887,086 | 7,889,926 | ||||||||||||||
Caesars Entertainment Corp. (0.5%)* (4) | Casinos & Gaming | First Lien Term Loan B (LIBOR + 2.75%, 5.0% Cash, Due 12/24) | 3,142,085 | 3,161,723 | 3,158,676 | |||||||||||
3,142,085 | 3,161,723 | 3,158,676 | ||||||||||||||
Calpine Corp. (0.8%)* (4) | Independent Power Producers & Energy Traders | Senior Secured Term Loan B7 (LIBOR + 2.5%, 4.8% Cash, Due 05/23) | 129,449 | 129,935 | 129,405 | |||||||||||
Senior Secured Term Loan B5 (LIBOR + 2.5%, 4.9% Cash, Due 01/24) | 4,509,162 | 4,526,071 | 4,508,215 | |||||||||||||
4,638,611 | 4,656,006 | 4,637,620 | ||||||||||||||
Capital Automotive LLC (2.0%)* (4) | Automotive Retail | Senior Secured Term Loan B (LIBOR + 2.5%, 4.8% Cash, Due 03/24) | 11,969,697 | 11,998,234 | 11,984,659 | |||||||||||
11,969,697 | 11,998,234 | 11,984,659 | ||||||||||||||
Concentra Inc. (0.5%)* (4) | Health Care Services | First Lien Term Loan (LIBOR + 2.75%, 4.9% Cash, Due 06/22) | 3,000,000 | 3,030,000 | 3,017,490 | |||||||||||
3,000,000 | 3,030,000 | 3,017,490 | ||||||||||||||
Consolidated Container Co. LLC (1.2%)* (4) | Metal & Glass Containers | Senior Secured Term Loan B (LIBOR + 3.0%, 5.0% Cash, Due 05/24) | 7,481,156 | 7,505,397 | 7,503,599 | |||||||||||
7,481,156 | 7,505,397 | 7,503,599 | ||||||||||||||
Container Store Group, Inc. (The) (0.5%)* (4) (6) | Retail | Senior Secured Term Loan B (LIBOR + 5.0%, 7.4% Cash, Due 08/23) | 3,163,954 | 3,165,634 | 3,179,773 | |||||||||||
3,163,954 | 3,165,634 | 3,179,773 | ||||||||||||||
Core & Main LP (1.6%)* (4) | Building Products | Senior Secured Term Loan B (LIBOR + 3.0%, 5.3% Cash, Due 08/24) | 10,000,000 | 10,050,000 | 10,029,200 | |||||||||||
10,000,000 | 10,050,000 | 10,029,200 | ||||||||||||||
Covia Holdings Corporation (Unimin Corporation) (0.9%)* (4) | Diversified Metals & Mining | Senior Secured Term Loan (LIBOR + 3.75%, 6.1% Cash, Due 06/25) | 5,985,000 | 6,007,216 | 5,645,830 | |||||||||||
5,985,000 | 6,007,216 | 5,645,830 | ||||||||||||||
CPI International Inc. (0.8%)* (4) | Electronic Components | First Lien Term Loan (LIBOR + 3.5%, 5.7% Cash, Due 07/24) | 4,807,774 | 4,816,003 | 4,807,774 | |||||||||||
4,807,774 | 4,816,003 | 4,807,774 | ||||||||||||||
CVS Holdings I, LP (MyEyeDr) (0.5%)* (4) | Health Care Supplies | First Lien Term Loan (LIBOR + 3.0%, 5.3% Cash, Due 02/25) | 2,958,623 | 2,957,439 | 2,958,622 | |||||||||||
2,958,623 | 2,957,439 | 2,958,622 | ||||||||||||||
Dimora Brands, Inc. (0.5%)* | Building Products | First Lien Term Loan (LIBOR + 3.5%, 5.7% Cash, Due 08/24) | 2,992,443 | 2,996,163 | 2,981,222 | |||||||||||
2,992,443 | 2,996,163 | 2,981,222 | ||||||||||||||
Dole Food Co. Inc. (2.3%)* (4) | Packaged Foods & Meats | Senior Secured Term Loan B (LIBOR + 2.75%, 5.0% Cash, Due 04/24) | 14,100,570 | 14,106,305 | 14,090,559 | |||||||||||
14,100,570 | 14,106,305 | 14,090,559 | ||||||||||||||
Dresser Natural Gas Solutions (2.0%)* (6) | Natural Gas | First Lien Term Loan (LIBOR + 4.25%, 6.6% Cash, Due 09/25) | 12,115,385 | 12,054,808 | 12,054,808 | |||||||||||
12,115,385 | 12,054,808 | 12,054,808 | ||||||||||||||
Duff & Phelps Corporation (2.2%)* (4) | Research & Consulting Services | First Lien Term Loan (LIBOR + 3.25%, 5.5% Cash, Due 02/25) | 13,374,893 | 13,410,075 | 13,374,893 | |||||||||||
13,374,893 | 13,410,075 | 13,374,893 | ||||||||||||||
BARINGS BDC, INC. Unaudited Consolidated Schedule of Investments — (Continued) September 30, 2018 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(5) | Principal Amount | Cost | Fair Value | |||||||||||
Edelman Financial Group, Inc. (1.7%)* (4) | Investment Banking & Brokerage | Senior Secured Term Loan B (LIBOR + 3.25%, 5.6% Cash, Due 07/25) | $ | 10,486,000 | $ | 10,570,186 | $ | 10,566,847 | ||||||||
10,486,000 | 10,570,186 | 10,566,847 | ||||||||||||||
Encapsys, LLC (Cypress Performance Group) (0.4%)* | Specialty Chemicals | First Lien Term Loan (LIBOR + 3.25%, 5.5% Cash, Due 11/24) | 2,177,803 | 2,180,477 | 2,187,777 | |||||||||||
2,177,803 | 2,180,477 | 2,187,777 | ||||||||||||||
Endo International PLC (1.8%)* (3) (4) | Pharmaceuticals | Senior Secured Term Loan B (LIBOR + 4.25%, 6.5% Cash, Due 04/24) | 11,000,000 | 11,091,981 | 11,066,440 | |||||||||||
11,000,000 | 11,091,981 | 11,066,440 | ||||||||||||||
Equian Buyer Corp. (0.9%)* (4) | Health Care Services | Senior Secured Term Loan B (LIBOR + 3.25%, 5.5% Cash, Due 05/24) | 5,486,111 | 5,492,264 | 5,511,841 | |||||||||||
5,486,111 | 5,492,264 | 5,511,841 | ||||||||||||||
Exelon Corp. (0.5%)* (4) (6) | Electric Utilities | Senior Secured Term Loan B (LIBOR + 3.0%, 5.3% Cash, Due 11/24) | 3,000,000 | 3,029,933 | 3,022,500 | |||||||||||
3,000,000 | 3,029,933 | 3,022,500 | ||||||||||||||
Eyemart Express (0.6%)* (4) | Retail | Senior Secured Term Loan B (LIBOR + 3.0%, 5.2% Cash, Due 08/24) | 3,487,443 | 3,499,814 | 3,500,521 | |||||||||||
3,487,443 | 3,499,814 | 3,500,521 | ||||||||||||||
Fieldwood Energy LLC (1.6%)* (4) | Oil & Gas Equipment & Services | First Lien Term Loan (LIBOR + 5.25%, 7.5% Cash, Due 04/22) | 10,000,000 | 10,098,058 | 10,042,500 | |||||||||||
10,000,000 | 10,098,058 | 10,042,500 | ||||||||||||||
Filtration Group Corporation (1.8%)* (4) | Industrial Machinery | Senior Secured Term Loan B (LIBOR + 3.0%, 5.2% Cash, Due 03/25) | 10,972,431 | 11,062,206 | 11,042,984 | |||||||||||
10,972,431 | 11,062,206 | 11,042,984 | ||||||||||||||
Flex Acquisition Holdings, Inc. (1.8%)* (4) | Paper Packaging | First Lien Term Loan (LIBOR + 3.25%, 5.8% Cash, Due 06/25) | 11,000,000 | 11,023,673 | 11,022,000 | |||||||||||
11,000,000 | 11,023,673 | 11,022,000 | ||||||||||||||
Gardner Denver Inc. (0.3%)* (3) (4) | Industrial Machinery | Senior Secured Term Loan B (LIBOR + 2.75%, 5.0% Cash, Due 07/24) | 1,714,870 | 1,726,679 | 1,723,273 | |||||||||||
1,714,870 | 1,726,679 | 1,723,273 | ||||||||||||||
Getty Images Inc. (2.3%)* (4) | Publishing | Senior Secured Term Loan B (LIBOR + 3.5%, 5.7% Cash, Due 10/19) | 13,962,963 | 13,718,655 | 13,851,957 | |||||||||||
13,962,963 | 13,718,655 | 13,851,957 | ||||||||||||||
GMS Inc. (1.2%)* (3) (4) | Construction & Engineering | First Lien Term Loan (LIBOR + 2.75%, 5.0% Cash, Due 06/25) | 7,500,000 | 7,457,400 | 7,478,100 | |||||||||||
7,500,000 | 7,457,400 | 7,478,100 | ||||||||||||||
Graftech International Ltd. (1.8%)* (4) (6) | Specialty Chemicals | Senior Secured Term Loan B (LIBOR + 3.5%, 5.7% Cash, Due 02/25) | 10,862,500 | 10,952,019 | 10,930,391 | |||||||||||
10,862,500 | 10,952,019 | 10,930,391 | ||||||||||||||
Hayward Industries, Inc. (1.4%)* (4) | Leisure Products | First Lien Term Loan (LIBOR + 3.5%, 5.7% Cash, Due 08/24) | 8,500,000 | 8,532,500 | 8,546,750 | |||||||||||
8,500,000 | 8,532,500 | 8,546,750 | ||||||||||||||
Hertz Corporation (The) (1.0%)* (3) (4) | Rental & Leasing Services | Senior Secured Term Loan B (LIBOR + 2.75%, 5.0% Cash, Due 06/23) | 5,969,152 | 5,957,960 | 5,945,514 | |||||||||||
5,969,152 | 5,957,960 | 5,945,514 | ||||||||||||||
Hoffmaster Group Inc. (0.5%)* (4) (6) | Packaging | First Lien Term Loan (LIBOR + 4.0%, 6.2% Cash, Due 11/23) | 3,211,811 | 3,211,255 | 3,235,900 | |||||||||||
3,211,811 | 3,211,255 | 3,235,900 | ||||||||||||||
Hub International Limited (1.7%)* (4) | Property & Casualty Insurance | Senior Secured Term Loan B (LIBOR + 3.0%, 5.3% Cash, Due 04/25) | 10,359,038 | 10,374,172 | 10,377,166 | |||||||||||
10,359,038 | 10,374,172 | 10,377,166 | ||||||||||||||
Husky Injection Molding Systems Ltd. (1.7%)* (3) (4) | Industrial Machinery | Senior Secured Term Loan B (LIBOR + 3.0%, 5.2% Cash, Due 03/25) | 10,818,111 | 10,378,986 | 10,502,006 | |||||||||||
10,818,111 | 10,378,986 | 10,502,006 | ||||||||||||||
BARINGS BDC, INC. Unaudited Consolidated Schedule of Investments — (Continued) September 30, 2018 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1)(5) | Principal Amount | Cost | Fair Value | |||||||||||
Hyland Software Inc. (1.3%)* (4) | Technology Distributors | Senior Secured Term Loan B (LIBOR + 3.25%, 5.5% Cash, Due 07/22) | $ | 7,979,747 | $ | 8,053,083 | $ | 8,026,269 | ||||||||
7,979,747 | 8,053,083 | 8,026,269 | ||||||||||||||
IMG Worldwide, Inc. (2.4%)* (4) | Business Equipment & Services | Senior Secured Term Loan B (LIBOR + 2.75%, 5.0% Cash, Due 05/25) | 14,463,750 | 14,448,357 | 14,427,591 | |||||||||||
14,463,750 | 14,448,357 | 14,427,591 | ||||||||||||||
Immucor Inc. (0.4%)* (4) | Healthcare | Senior Secured Term Loan (LIBOR + 5.0%, 7.4% Cash, Due 06/21) | 2,497,678 | 2,533,891 | 2,536,716 | |||||||||||
2,497,678 | 2,533,891 | 2,536,716 | ||||||||||||||
Infor Software Parent, LLC (1.3%)* (4) | Systems Software | First Lien Term Loan B (LIBOR + 2.75%, 5.1% Cash, Due 02/22) | 8,000,000 | 8,013,642 | 8,018,720 | |||||||||||
8,000,000 | 8,013,642 | 8,018,720 | ||||||||||||||
Intelsat S.A. (2.1%)* (3) (4) | Broadcasting | Senior Secured Term Loan B3 (LIBOR + 3.75%, 6.0% Cash, Due 11/23) | 13,000,000 | 13,082,473 | 13,045,110 | |||||||||||
13,000,000 | 13,082,473 | 13,045,110 | ||||||||||||||
ION Trading Technologies Ltd. (2.4%)* (4) | Electrical Components & Equipment | Senior Secured Term Loan B (LIBOR + 4.0%, 6.4% Cash, Due 11/24) | 14,962,312 | 14,925,105 | 14,892,138 | |||||||||||
14,962,312 | 14,925,105 | 14,892,138 | ||||||||||||||
IRB Holding Corporation (0.9%)* (4) | Food Retail | First Lien Term Loan (LIBOR + 3.25%, 5.5% Cash, Due 02/25) | 5,454,861 | 5,481,959 | 5,458,297 | |||||||||||
5,454,861 | 5,481,959 | 5,458,297 | ||||||||||||||
Jaguar Holding Company I (1.3%)* (4) | Life Sciences Tools & Services | Senior Secured Term Loan B (LIBOR + 2.5%, 4.7% Cash, Due 08/22) | 7,979,381 | 7,980,628 | 7,983,930 | |||||||||||
7,979,381 | 7,980,628 | 7,983,930 | ||||||||||||||
JS Held, LLC (2.8%)* (6) | Property & Casualty Insurance | Senior Secured Term Loan (LIBOR + 4.50%, 6.9% Cash, Due 09/24) | 17,593,912 | 17,395,669 | 17,395,347 | |||||||||||
17,593,912 | 17,395,669 | 17,395,347 | ||||||||||||||
Kenan Advantage Group Inc. (1.8%)* (4) | Trucking | Senior Secured Term Loan B (LIBOR + 3.0%, 5.2% Cash, Due 07/22) | 10,971,746 | 10,959,002 | 10,971,746 | |||||||||||
10,971,746 | 10,959,002 | 10,971,746 | ||||||||||||||
K-Mac Holdings Corp (0.6%)* (4) | Restaurants | First Lien Term Loan (LIBOR + 3.25%, 5.4% Cash, Due 03/25) | 3,490,545 | 3,500,830 | 3,500,144 | |||||||||||
3,490,545 | 3,500,830 | 3,500,144 | ||||||||||||||
Kronos Inc. (2.1%)* (4) | Application Software | Senior Secured Term Loan B (LIBOR + 3.0%, 5.3% Cash, Due 11/23) | 12,534,444 | 12,583,821 | 12,592,479 | |||||||||||
12,534,444 | 12,583,821 | 12,592,479 | ||||||||||||||
Lindstrom (Metric Enterprises, Inc.) (1.1%)* (6) | Capital Equipment | Senior Secured Term Loan (LIBOR + 4.5%, 6.7% Cash, Due 08/24) | 7,023,012 | 6,970,582 | 6,972,244 | |||||||||||
7,023,012 | 6,970,582 | 6,972,244 | ||||||||||||||
LTI Holdings, Inc. (2.0%)* (4) | Industrial Conglomerates | First Lien Term Loan (LIBOR + 3.5%, 5.7% Cash, Due 09/25) | 12,000,000 | 12,065,000 | 12,045,000 | |||||||||||
12,000,000 | 12,065,000 | 12,045,000 | ||||||||||||||
Mallinckrodt Plc (1.9%)* (3) (4) | Health Care Services | Senior Secured Term Loan B (LIBOR + 2.75%, 5.1% Cash, Due 09/24) | 11,969,620 | 11,891,392 | 11,903,309 | |||||||||||
11,969,620 | 11,891,392 | 11,903,309 | ||||||||||||||