Table of Contents


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
__________________________________________________________
Form 10-Q
__________________________________________________________
(Mark One)
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2018
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission file number 814-00733 
__________________________________________________________
Barings BDC, Inc.
(Exact name of registrant as specified in its charter)
__________________________________________________________
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)
Registrant's telephone number, including area code: (704) 805-7200
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report:
__________________________________________________________
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ¨    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
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.
   ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý
The number of shares outstanding of the registrant’s Common Stock on November 8, 2018 was 51,284,064.




BARINGS BDC, INC.
TABLE OF CONTENTS
QUARTERLY REPORT ON FORM 10-Q

 
 
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.


2



PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.
BARINGS BDC, INC.
Consolidated Balance Sheets
 
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


See accompanying notes.


3



BARINGS BDC, INC.
Unaudited Consolidated Statements of Operations
 
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

See accompanying notes.

4



BARINGS BDC, INC.
Unaudited Consolidated Statements of Changes in Net Assets
 
 
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


See accompanying notes.

5



BARINGS BDC, INC.
Unaudited Consolidated Statements of Cash Flows 
 
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

See accompanying notes.

6



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

 
 
 
 
 
 
 
 
 
 
 

7



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

 
 
 
 
 
 
 
 
 
 
 

8



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

 
 
 
 
 
 
 
 
 
 
 

9



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