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) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
Common Stock, par value $0.001 per share | BBDC | The New York Stock Exchange |
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. | ||
March 31, 2019 | December 31, 2018 | ||||||
(Unaudited) | |||||||
Assets: | |||||||
Investments at fair value: | |||||||
Non-Control / Non-Affiliate investments (cost of $1,153,635,479 and $1,128,694,715 as of March 31, 2019 and December 31, 2018, respectively) | $ | 1,126,969,755 | $ | 1,076,631,804 | |||
Short-term investments (cost of $62,414,373 and $45,223,941 as of March 31, 2019 and December 31, 2018, respectively) | 62,414,373 | 45,223,941 | |||||
Total investments at fair value | 1,189,384,128 | 1,121,855,745 | |||||
Cash | 3,056,609 | 12,426,982 | |||||
Interest and fees receivable | 5,247,730 | 6,008,700 | |||||
Prepaid expenses and other assets | 2,885,001 | 4,123,742 | |||||
Deferred financing fees | 6,472,994 | 251,908 | |||||
Receivable from unsettled transactions | 4,124,686 | 22,909,998 | |||||
Total assets | $ | 1,211,171,148 | $ | 1,167,577,075 | |||
Liabilities: | |||||||
Accounts payable and accrued liabilities | $ | 6,039,494 | $ | 5,327,249 | |||
Interest payable | 334,161 | 749,525 | |||||
Payable from unsettled transactions | 636,179 | 28,533,014 | |||||
Borrowings under credit facilities | 620,000,000 | 570,000,000 | |||||
Total liabilities | 627,009,834 | 604,609,788 | |||||
Commitments and contingencies (Note 9) | |||||||
Net Assets: | |||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 50,690,659 and 51,284,064 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively) | 50,691 | 51,284 | |||||
Additional paid-in capital | 879,033,345 | 884,894,249 | |||||
Total distributable earnings (loss) | (294,922,722 | ) | (321,978,246 | ) | |||
Total net assets | 584,161,314 | 562,967,287 | |||||
Total liabilities and net assets | $ | 1,211,171,148 | $ | 1,167,577,075 | |||
Net asset value per share | $ | 11.52 | $ | 10.98 |
Three Months Ended | Three Months Ended | ||||||
March 31, 2019 | March 31, 2018 | ||||||
Investment income: | |||||||
Interest income: | |||||||
Non-Control / Non-Affiliate investments | $ | 17,861,319 | $ | 19,006,050 | |||
Affiliate investments | — | 2,660,187 | |||||
Control investments | — | 275,036 | |||||
Short-term investments | 172,695 | — | |||||
Total interest income | 18,034,014 | 21,941,273 | |||||
Dividend income: | |||||||
Non-Control / Non-Affiliate investments | — | 185,712 | |||||
Affiliate investments | — | 4,550 | |||||
Total dividend income | — | 190,262 | |||||
Fee and other income: | |||||||
Non-Control / Non-Affiliate investments | 301,057 | 1,293,717 | |||||
Affiliate investments | — | 394,273 | |||||
Control investments | — | 100,000 | |||||
Total fee and other income | 301,057 | 1,787,990 | |||||
Payment-in-kind interest income: | |||||||
Non-Control / Non-Affiliate investments | — | 1,306,581 | |||||
Affiliate investments | — | 422,140 | |||||
Total payment-in-kind interest income | — | 1,728,721 | |||||
Interest income from cash | 4,687 | 427,841 | |||||
Total investment income | 18,339,758 | 26,076,087 | |||||
Operating expenses: | |||||||
Interest and other financing fees | 5,844,172 | 7,590,548 | |||||
Base management fee (Note 2) | 2,450,995 | — | |||||
Compensation expenses | 118,444 | 4,092,852 | |||||
General and administrative expenses (Note 2) | 1,968,860 | 1,668,509 | |||||
Total operating expenses | 10,382,471 | 13,351,909 | |||||
Net investment income | 7,957,287 | 12,724,178 | |||||
Realized and unrealized gains (losses) on investments and foreign currency borrowings: | |||||||
Net realized gains (losses): | |||||||
Non-Control / Non-Affiliate investments | (129,775 | ) | (11,939,484 | ) | |||
Affiliate investments | — | 3,257,198 | |||||
Control investments | — | 4,000 | |||||
Net realized losses on investments | (129,775 | ) | (8,678,286 | ) | |||
Foreign currency borrowings | — | 1,423,126 | |||||
Net realized losses | (129,775 | ) | (7,255,160 | ) | |||
Net unrealized appreciation (depreciation): | |||||||
Non-Control / Non-Affiliate investments | 25,397,188 | 9,932,384 | |||||
Affiliate investments | — | 1,455,331 | |||||
Control investments | — | (1,370,875 | ) | ||||
Net unrealized appreciation on investments | 25,397,188 | 10,016,840 | |||||
Foreign currency borrowings | — | (963,415 | ) | ||||
Net unrealized appreciation | 25,397,188 | 9,053,425 | |||||
Net realized and unrealized appreciation on investments and foreign currency borrowings | 25,267,413 | 1,798,265 | |||||
Loss on extinguishment of debt | (44,395 | ) | — | ||||
Provision for taxes | (17,992 | ) | (50,790 | ) | |||
Net increase in net assets resulting from operations | $ | 33,162,313 | $ | 14,471,653 | |||
Net investment income per share—basic and diluted | $ | 0.16 | $ | 0.27 | |||
Net increase in net assets resulting from operations per share—basic and diluted | $ | 0.65 | $ | 0.30 | |||
Dividends/distributions per share: | |||||||
Total dividends/distributions per share | $ | 0.12 | $ | 0.30 | |||
Weighted average shares outstanding—basic and diluted | 51,157,646 | 47,898,859 |
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 income | — | — | — | 12,724,178 | 12,724,178 | |||||||||||||
Stock-based compensation | — | — | 1,455,543 | — | 1,455,543 | |||||||||||||
Net realized loss on investments / foreign currency borrowings | — | — | — | (7,255,160 | ) | (7,255,160 | ) | |||||||||||
Net unrealized appreciation of investments / foreign currency borrowings | — | — | — | 9,053,425 | 9,053,425 | |||||||||||||
Provision for taxes | — | — | — | (50,790 | ) | (50,790 | ) | |||||||||||
Dividends / distributions | — | — | — | (14,407,384 | ) | (14,407,384 | ) | |||||||||||
Issuance of restricted stock | 409,000 | 409 | (409 | ) | — | — | ||||||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock | (125,218 | ) | (125 | ) | (1,283,359 | ) | — | (1,283,484 | ) | |||||||||
Balance, March 31, 2018 | 48,024,614 | $ | 48,025 | $ | 823,786,656 | $ | (182,322,979 | ) | $ | 641,511,702 |
Common Stock | Additional Paid-In Capital | Total Distributable Earnings (Loss) | Total Net Assets | |||||||||||||||
Number of Shares | Par Value | |||||||||||||||||
Balance, December 31, 2018 | 51,284,064 | $ | 51,284 | $ | 884,894,249 | $ | (321,978,246 | ) | $ | 562,967,287 | ||||||||
Net investment income | — | — | — | 7,957,287 | 7,957,287 | |||||||||||||
Net realized loss on investments / foreign currency borrowings | — | — | — | (129,775 | ) | (129,775 | ) | |||||||||||
Net unrealized appreciation of investments / foreign currency borrowings | — | — | — | 25,397,188 | 25,397,188 | |||||||||||||
Loss on extinguishment of debt | — | — | — | (44,395 | ) | (44,395 | ) | |||||||||||
Provision for taxes | — | — | — | (17,992 | ) | (17,992 | ) | |||||||||||
Dividends / distributions | — | — | (6,106,789 | ) | (6,106,789 | ) | ||||||||||||
Purchases of shares in repurchase plan | (593,405 | ) | (593 | ) | (5,860,904 | ) | — | (5,861,497 | ) | |||||||||
Balance, March 31, 2019 | 50,690,659 | $ | 50,691 | $ | 879,033,345 | $ | (294,922,722 | ) | $ | 584,161,314 |
Three Months Ended | Three Months Ended | ||||||
March 31, 2019 | March 31, 2018 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets resulting from operations | $ | 33,162,313 | $ | 14,471,653 | |||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities: | |||||||
Purchases of portfolio investments | (93,255,027 | ) | (28,285,073 | ) | |||
Repayments received/sales of portfolio investments | 58,368,472 | 81,440,184 | |||||
Purchases of short-term investments | (174,926,000 | ) | — | ||||
Sales of short-term investments | 157,735,568 | — | |||||
Loan origination and other fees received | 987,006 | 205,499 | |||||
Net realized loss on investments | 129,775 | 8,678,286 | |||||
Net realized gain on foreign currency borrowings | — | (1,423,126 | ) | ||||
Net unrealized appreciation of investments | (25,397,188 | ) | (9,934,939 | ) | |||
Net unrealized depreciation of foreign currency borrowings | — | 963,415 | |||||
Payment-in-kind interest accrued, net of payments received | — | 1,425,537 | |||||
Amortization of deferred financing fees | 180,746 | 662,793 | |||||
Loss on extinguishment of debt | 44,395 | — | |||||
Accretion of loan origination and other fees | (224,397 | ) | (1,224,392 | ) | |||
Amortization/accretion of purchased loan premium/discount | (58,115 | ) | (5,986 | ) | |||
Depreciation expense | — | 13,707 | |||||
Stock-based compensation | — | 1,455,543 | |||||
Changes in operating assets and liabilities: | |||||||
Interest and fees receivables | 760,970 | 849 | |||||
Prepaid expenses and other assets | 1,238,741 | (640,155 | ) | ||||
Accounts payable and accrued liabilities | 712,245 | (3,246,232 | ) | ||||
Interest payable | (415,364 | ) | (2,194,990 | ) | |||
Net cash provided by (used in) operating activities | (40,955,860 | ) | 62,362,573 | ||||
Cash flows from financing activities: | |||||||
Borrowings under credit facilities | 85,000,000 | — | |||||
Repayments of credit facilities | (35,000,000 | ) | (30,609,489 | ) | |||
Financing fees paid | (6,446,227 | ) | — | ||||
Purchases of shares in repurchase plan | (5,861,497 | ) | — | ||||
Common stock withheld for payroll taxes upon vesting of restricted stock | — | (1,283,484 | ) | ||||
Cash dividends/distributions paid | (6,106,789 | ) | (14,407,384 | ) | |||
Net cash provided by (used in) financing activities | 31,585,487 | (46,300,357 | ) | ||||
Net increase (decrease) in cash | (9,370,373 | ) | 16,062,216 | ||||
Cash, beginning of period | 12,426,982 | 191,849,697 | |||||
Cash, end of period | $ | 3,056,609 | $ | 207,911,913 | |||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for interest | $ | 5,589,938 | $ | 8,748,005 |
Barings BDC, Inc. Unaudited Consolidated Schedule of Investments March 31, 2019 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1) (2) | Principal Amount | Cost | Fair Value | |||||||||||
Non–Control / Non–Affiliate Investments: | ||||||||||||||||
24 Hour Fitness Worldwide, Inc. (1.6%)*(4) | Leisure Facilities | First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 05/25) | $ | 9,428,750 | $ | 9,516,948 | $ | 9,405,178 | ||||||||
9,428,750 | 9,516,948 | 9,405,178 | ||||||||||||||
Accelerate Learning, Inc. (1.4%)*(5) (6) | Education Services | First Lien Senior Secured Term Loan (LIBOR + 4.5%, 7.1% Cash, Due 12/24) | 8,434,687 | 8,272,539 | 8,184,651 | |||||||||||
8,434,687 | 8,272,539 | 8,184,651 | ||||||||||||||
Accurus Aerospace Corporation (4.3%)*(5) (6) | Aerospace & Defense | First Lien Senior Secured Term Loan (LIBOR + 4.5%, 7.1% Cash, Due 10/24) | 24,937,500 | 24,587,478 | 24,164,637 | |||||||||||
24,937,500 | 24,587,478 | 24,164,637 | ||||||||||||||
Acrisure, LLC (1.7%)*(4) (5) | Property & Casualty Insurance | First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.9% Cash, Due 11/23) | 9,924,433 | 9,983,512 | 9,847,916 | |||||||||||
9,924,433 | 9,983,512 | 9,847,916 | ||||||||||||||
ADMI Corp. (0.6%)*(4) (5) | Health Care Services | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 04/25) | 3,473,750 | 3,485,928 | 3,431,787 | |||||||||||
3,473,750 | 3,485,928 | 3,431,787 | ||||||||||||||
AlixPartners LLP (1.4%)*(4) | Investment Banking & Brokerage | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.3% Cash, Due 04/24) | 8,038,481 | 8,081,313 | 7,974,173 | |||||||||||
8,038,481 | 8,081,313 | 7,974,173 | ||||||||||||||
Alliant Holdings LP (0.8%)*(4) | Property & Casualty Insurance | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 05/25) | 4,972,506 | 4,980,180 | 4,773,606 | |||||||||||
4,972,506 | 4,980,180 | 4,773,606 | ||||||||||||||
American Airlines Group Inc. (1.3%)*(3) (4) | Airport Services | First Lien Senior Secured Term Loan (LIBOR + 1.75%, 4.2% Cash, Due 06/25) | 7,985,519 | 7,857,641 | 7,758,810 | |||||||||||
7,985,519 | 7,857,641 | 7,758,810 | ||||||||||||||
American Dental Partners, Inc. (1.7%)*(5) | Health Care Services | First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.9% Cash, Due 03/23) | 9,975,000 | 9,951,869 | 9,862,781 | |||||||||||
9,975,000 | 9,951,869 | 9,862,781 | ||||||||||||||
Amscan Holdings Inc. (0.4%)*(3) (4) | Specialty Stores | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.0% Cash, Due 08/22) | 2,401,844 | 2,417,936 | 2,381,164 | |||||||||||
2,401,844 | 2,417,936 | 2,381,164 | ||||||||||||||
Anju Software, Inc. (1.0%)*(5) (6) | Application Software | First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.4% Cash, Due 02/25) | 5,944,114 | 5,636,428 | 5,737,606 | |||||||||||
5,944,114 | 5,636,428 | 5,737,606 | ||||||||||||||
Apex Tool Group, LLC (1.2%)*(4) | Industrial Machinery | First Lien Senior Secured Term Loan (LIBOR + 3.75%, 6.2% Cash, Due 02/22) | 7,282,870 | 7,310,254 | 7,058,339 | |||||||||||
7,282,870 | 7,310,254 | 7,058,339 | ||||||||||||||
Applied Systems Inc. (1.6%)*(4) | Application Software | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 09/24) | 9,289,491 | 9,354,295 | 9,187,864 | |||||||||||
9,289,491 | 9,354,295 | 9,187,864 | ||||||||||||||
AQA Acquisition Holding, Inc. (f/k/a SmartBear) (0.8%)*(5) (6) | High Tech Industries | Second Lien Senior Secured Term Loan (LIBOR + 8.0%, 10.8% Cash, Due 05/24) | 4,959,088 | 4,844,740 | 4,761,871 | |||||||||||
4,959,088 | 4,844,740 | 4,761,871 | ||||||||||||||
Ascend Learning, LLC (1.3%)*(4) | IT Consulting & Other Services | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 07/24) | 7,939,547 | 7,960,498 | 7,757,572 | |||||||||||
7,939,547 | 7,960,498 | 7,757,572 | ||||||||||||||
AssuredPartners Capital, Inc. (2.0%)*(4) | Property & Casualty Insurance | First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 10/24) | 11,917,421 | 11,940,095 | 11,515,208 | |||||||||||
11,917,421 | 11,940,095 | 11,515,208 | ||||||||||||||
Aveanna Healthcare Holdings, Inc. (0.8%)*(4) (6) | Health Care Facilities | First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.9% Cash, Due 03/24) | 1,484,924 | 1,466,457 | 1,421,814 | |||||||||||
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 8.1% Cash, Due 03/24) | 3,556,421 | 3,557,348 | 3,458,620 | |||||||||||||
5,041,345 | 5,023,805 | 4,880,434 | ||||||||||||||
Barings BDC, Inc. Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2019 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1) (2) | Principal Amount | Cost | Fair Value | |||||||||||
AVSC Holding Corp. (1.3%)*(4) | Advertising | First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.8% Cash, Due 03/25) | $ | 7,959,900 | $ | 7,918,741 | $ | 7,741,002 | ||||||||
7,959,900 | 7,918,741 | 7,741,002 | ||||||||||||||
Bausch Health Companies Inc. (1.4%)*(3) (4) (5) | Health Care Services | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 05/25) | 8,477,238 | 8,519,575 | 8,416,710 | |||||||||||
8,477,238 | 8,519,575 | 8,416,710 | ||||||||||||||
BDP Buyer, LLC (f/k/a BDP International, Inc.) (4.1%)*(5) (6) | Air Freight & Logistics | First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.9% Cash, Due 12/24) | 24,937,500 | 24,457,944 | 24,200,193 | |||||||||||
24,937,500 | 24,457,944 | 24,200,193 | ||||||||||||||
Berlin Packaging LLC (1.4%)*(4) (5) | Forest Products /Containers | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 11/25) | 8,436,250 | 8,455,365 | 8,157,854 | |||||||||||
8,436,250 | 8,455,365 | 8,157,854 | ||||||||||||||
Blackhawk Network Holdings Inc (1.7%)*(4) | Data Processing & Outsourced Services | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 06/25) | 9,949,875 | 9,949,875 | 9,760,827 | |||||||||||
9,949,875 | 9,949,875 | 9,760,827 | ||||||||||||||
Brown Machine Group Holdings, LLC (f/k/a Brown Machine LLC) (0.9%)*(5) (6) | Industrial Equipment | First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.7% Cash, Due 10/24) | 5,554,988 | 5,490,691 | 5,398,160 | |||||||||||
5,554,988 | 5,490,691 | 5,398,160 | ||||||||||||||
Cadent, LLC (f/k/a Cross MediaWorks) (1.4%)*(5) (6) | Media & Entertainment | First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.7% Cash, Due 09/23) | 7,926,302 | 7,855,018 | 7,886,671 | |||||||||||
7,926,302 | 7,855,018 | 7,886,671 | ||||||||||||||
Caesars Entertainment Corp. (0.5%)*(3) (4) | Casinos & Gaming | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 12/24) | 3,126,256 | 3,144,398 | 3,081,582 | |||||||||||
3,126,256 | 3,144,398 | 3,081,582 | ||||||||||||||
Calpine Corp. (0.8%)*(4) | Independent Power Producers & Energy Traders | First Lien Senior Secured Term Loan7 (LIBOR + 2.5%, 5.1% Cash, Due 05/23) | 128,787 | 129,227 | 127,517 | |||||||||||
First Lien Senior Secured Term Loan5 (LIBOR + 2.5%, 5.1% Cash, Due 01/24) | 4,485,859 | 4,501,412 | 4,437,725 | |||||||||||||
4,614,646 | 4,630,639 | 4,565,242 | ||||||||||||||
Capital Automotive LLC (2.0%)*(4) | Automotive Retail | First Lien Senior Secured Term Loan (LIBOR + 2.5%, 5.0% Cash, Due 03/24) | 11,909,091 | 11,935,011 | 11,778,805 | |||||||||||
11,909,091 | 11,935,011 | 11,778,805 | ||||||||||||||
Concentra Inc. (0.5%)*(4) | Health Care Services | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 06/22) | 2,912,371 | 2,938,263 | 2,888,111 | |||||||||||
2,912,371 | 2,938,263 | 2,888,111 | ||||||||||||||
Consolidated Container Co. LLC (1.3%)*(4) | Metal & Glass Containers | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 05/24) | 7,443,467 | 7,465,664 | 7,314,770 | |||||||||||
7,443,467 | 7,465,664 | 7,314,770 | ||||||||||||||
Container Store Group, Inc., (The) (0.5%)*(3) (4) (6) | Retail | First Lien Senior Secured Term Loan (LIBOR + 5.0%, 7.5% Cash, Due 09/23) | 2,988,521 | 2,990,675 | 2,966,107 | |||||||||||
2,988,521 | 2,990,675 | 2,966,107 | ||||||||||||||
Core & Main LP (1.7%)*(4) | Building Products | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.6% Cash, Due 08/24) | 9,949,622 | 9,995,412 | 9,858,384 | |||||||||||
9,949,622 | 9,995,412 | 9,858,384 | ||||||||||||||
CPG Intermediate LLC (0.4%)*(5) | Specialty Chemicals | First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 11/24) | 2,166,859 | 2,169,317 | 2,118,105 | |||||||||||
2,166,859 | 2,169,317 | 2,118,105 | ||||||||||||||
CPI International Inc. (0.8%)*(4) (6) | Electronic Components | First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 07/24) | 4,783,492 | 4,791,281 | 4,663,905 | |||||||||||
4,783,492 | 4,791,281 | 4,663,905 | ||||||||||||||
CVS Holdings I, LP (MyEyeDr) (0.3%)*(4) (5) | Health Care Supplies | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.3% Cash, Due 02/25) | 1,953,701 | 1,952,607 | 1,882,879 | |||||||||||
1,953,701 | 1,952,607 | 1,882,879 | ||||||||||||||
Barings BDC, Inc. Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2019 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1) (2) | Principal Amount | Cost | Fair Value | |||||||||||
Dimora Brands, Inc. (0.5%)*(5) | Building Products | First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 08/24) | $ | 2,977,330 | $ | 2,980,740 | $ | 2,895,453 | ||||||||
2,977,330 | 2,980,740 | 2,895,453 | ||||||||||||||
Dole Food Co. Inc. (2.3%)*(4) | Packaged Foods & Meats | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 04/24) | 13,829,405 | 13,836,514 | 13,158,679 | |||||||||||
13,829,405 | 13,836,514 | 13,158,679 | ||||||||||||||
Duff & Phelps Corporation (2.2%)*(4) | Research & Consulting Services | First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 02/25) | 13,307,683 | 13,343,167 | 13,013,849 | |||||||||||
13,307,683 | 13,343,167 | 13,013,849 | ||||||||||||||
Edelman Financial Group, Inc. (1.8%)*(4) | Investment Banking & Brokerage | First Lien Senior Secured Term Loan (LIBOR + 3.25%, 6.0% Cash, Due 07/25) | 10,459,785 | 10,540,132 | 10,365,019 | |||||||||||
10,459,785 | 10,540,132 | 10,365,019 | ||||||||||||||
Endo International PLC (1.3%)*(3) (4) | Pharmaceuticals | First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.8% Cash, Due 04/24) | 7,939,394 | 8,009,672 | 7,779,336 | |||||||||||
7,939,394 | 8,009,672 | 7,779,336 | ||||||||||||||
Equian Buyer Corp. (0.6%)*(4) | Health Care Services | First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 05/24) | 3,473,485 | 3,479,110 | 3,404,015 | |||||||||||
3,473,485 | 3,479,110 | 3,404,015 | ||||||||||||||
Exelon Corp. (0.5%)*(3) (4) | Electric Utilities | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.6% Cash, Due 11/24) | 3,000,000 | 3,027,667 | 2,805,000 | |||||||||||
3,000,000 | 3,027,667 | 2,805,000 | ||||||||||||||
Exeter Property Group, LLC (2.1%)*(5) (6) | Real Estate | First Lien Senior Secured Term Loan (LIBOR + 4.5%,7.0% Cash, Due 08/24) | 12,500,000 | 12,315,104 | 12,399,262 | |||||||||||
12,500,000 | 12,315,104 | 12,399,262 | ||||||||||||||
Eyemart Express (0.6%)*(4) (5) | Retail | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 08/24) | 3,469,830 | 3,481,159 | 3,426,457 | |||||||||||
3,469,830 | 3,481,159 | 3,426,457 | ||||||||||||||
Fieldwood Energy LLC (1.6%)*(4) (5) | Oil & Gas Equipment & Services | First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.7% Cash, Due 04/22) | 10,000,000 | 10,084,824 | 9,600,000 | |||||||||||
10,000,000 | 10,084,824 | 9,600,000 | ||||||||||||||
Filtration Group Corporation (1.9%)*(4) | Industrial Machinery | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 03/25) | 10,917,293 | 11,001,525 | 10,837,706 | |||||||||||
10,917,293 | 11,001,525 | 10,837,706 | ||||||||||||||
Flex Acquisition Holdings, Inc. (1.6%)*(4) (5) | Paper Packaging | First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.9% Cash, Due 06/25) | 9,947,506 | 9,967,342 | 9,624,212 | |||||||||||
9,947,506 | 9,967,342 | 9,624,212 | ||||||||||||||
GlobalTranz Enterprises, Inc.(0.5%)*(5) (6) | Transportation Services | Second Lien Senior Secured Term Loan (LIBOR + 8.0%, 10.5% Cash, Due 10/26) | 2,980,874 | 2,938,129 | 2,891,062 | |||||||||||
2,980,874 | 2,938,129 | 2,891,062 | ||||||||||||||
GMS Inc. (1.2%)*(3) (4) (5) | Construction & Engineering | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 06/25) | 7,462,406 | 7,422,955 | 7,216,743 | |||||||||||
7,462,406 | 7,422,955 | 7,216,743 | ||||||||||||||
Graftech International Ltd. (1.7%)*(3) (4) (6) | Specialty Chemicals | First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 02/25) | 10,113,889 | 10,196,240 | 10,075,962 | |||||||||||
10,113,889 | 10,196,240 | 10,075,962 | ||||||||||||||
Gulf Finance, LLC (0.1)*(4) | Oil & Gas Exploration & Production | First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.8% Cash, Due 08/23) | 1,066,984 | 905,535 | 846,918 | |||||||||||
1,066,984 | 905,535 | 846,918 | ||||||||||||||
Harbor Freight Tools USA Inc.(1.0%)*(4) | Specialty Stores | First Lien Senior Secured Term Loan (LIBOR + 2.5%, 5.0% Cash, Due 08/23) | 5,994,942 | 5,937,111 | 5,845,068 | |||||||||||
5,994,942 | 5,937,111 | 5,845,068 | ||||||||||||||
Barings BDC, Inc. Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2019 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1) (2) | Principal Amount | Cost | Fair Value | |||||||||||
Hayward Industries, Inc. (1.4%)*(4) | Leisure Products | First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 08/24) | $ | 8,435,768 | $ | 8,465,829 | $ | 8,261,823 | ||||||||
8,435,768 | 8,465,829 | 8,261,823 | ||||||||||||||
Healthline Media, Inc (2.1%)*(5) (6) | Healthcare | First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.6% Cash, Due 11/24) | 12,808,793 | 12,566,034 | 12,358,502 | |||||||||||
12,808,793 | 12,566,034 | 12,358,502 | ||||||||||||||
Hertz Corporation (The) (1.0%)*(3) (4) | Rental & Leasing Services | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.3% Cash, Due 06/23) | 5,907,455 | 5,897,407 | 5,791,196 | |||||||||||
5,907,455 | 5,897,407 | 5,791,196 | ||||||||||||||
Holley Performance Products (Holley Purchaser, Inc.) (3.8%)*(5) (6) | Packaging | First Lien Senior Secured Term Loan (LIBOR + 5.0%, 7.7% Cash, Due 10/25) | 22,478,663 | 22,158,066 | 22,029,089 | |||||||||||
22,478,663 | 22,158,066 | 22,029,089 | ||||||||||||||
Hub International Limited (1.7%)*(4) (5) | Property & Casualty Insurance | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.5% Cash, Due 04/25) | 10,307,113 | 10,321,137 | 9,954,918 | |||||||||||
10,307,113 | 10,321,137 | 9,954,918 | ||||||||||||||
Husky Injection Molding Systems Ltd. (1.3%)*(3) (4) | Industrial Machinery | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 03/25) | 8,025,373 | 7,753,213 | 7,447,546 | |||||||||||
8,025,373 | 7,753,213 | 7,447,546 | ||||||||||||||
HW Holdco, LLC (f/k/a Hanley Wood LLC) (1.3%)*(5) (6) | Advertising | First Lien Senior Secured Term Loan (LIBOR + 6.25%, 8.9% Cash, Due 12/24) | 7,642,137 | 7,459,275 | 7,573,985 | |||||||||||
7,642,137 | 7,459,275 | 7,573,985 | ||||||||||||||
Hyland Software Inc. (1.5%)*(4) | Technology Distributors | First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 07/24) | 8,693,355 | 8,752,151 | 8,669,796 | |||||||||||
8,693,355 | 8,752,151 | 8,669,796 | ||||||||||||||
Immucor Inc. (0.4%)*(4) | Healthcare | First Lien Senior Secured Term Loan (LIBOR + 5.0%, 7.6% Cash, Due 06/21) | 2,485,031 | 2,515,150 | 2,478,818 | |||||||||||
2,485,031 | 2,515,150 | 2,478,818 | ||||||||||||||
Infor Software Parent, LLC (0.9%)*(4) | Systems Software | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 02/22) | 5,000,000 | 5,008,484 | 4,972,650 | |||||||||||
5,000,000 | 5,008,484 | 4,972,650 | ||||||||||||||
Institutional Shareholder Services, Inc. (0.8%)*(5) (6) | Diversified Support Services | Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 11.1% Cash, Due 03/27) | 4,951,685 | 4,804,012 | 4,835,092 | |||||||||||
4,951,685 | 4,804,012 | 4,835,092 | ||||||||||||||
Intelsat S.A. (2.2%)*(3) (4) | Broadcasting | First Lien Senior Secured Term Loan (LIBOR + 3.75%, 6.2% Cash, Due 11/23) | 13,000,000 | 13,076,301 | 12,792,780 | |||||||||||
13,000,000 | 13,076,301 | 12,792,780 | ||||||||||||||
ION Trading Technologies Ltd. (2.5%)*(4) | Electrical Components & Equipment | First Lien Senior Secured Term Loan (LIBOR + 4.0%, 6.7% Cash, Due 11/24) | 14,819,339 | 14,787,474 | 14,350,899 | |||||||||||
14,819,339 | 14,787,474 | 14,350,899 | ||||||||||||||
IRB Holding Corporation (1.3%)*(4) (5) | Food Retail | First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 02/25) | 7,949,778 | 7,968,682 | 7,741,097 | |||||||||||
7,949,778 | 7,968,682 | 7,741,097 | ||||||||||||||
Jaguar Holding Company I (0.8%)*(4) | Life Sciences Tools & Services | First Lien Senior Secured Term Loan (LIBOR + 2.5%, 5.0% Cash, Due 08/22) | 4,961,340 | 4,962,462 | 4,906,120 | |||||||||||
4,961,340 | 4,962,462 | 4,906,120 | ||||||||||||||
JS Held, LLC (3.1%)*(5) (6) | Property & Casualty Insurance | First Lien Senior Secured Term Loan (LIBOR + 4.5%, 7.1% Cash, Due 09/24) | 18,429,608 | 18,247,336 | 17,918,119 | |||||||||||
18,429,608 | 18,247,336 | 17,918,119 | ||||||||||||||
Kenan Advantage Group Inc. (1.4%)*(4) (5) | Trucking | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 07/22) | 8,428,113 | 8,421,612 | 8,267,978 | |||||||||||
8,428,113 | 8,421,612 | 8,267,978 | ||||||||||||||
Barings BDC, Inc. Unaudited Consolidated Schedule of Investments — (Continued) March 31, 2019 | ||||||||||||||||
Portfolio Company | Industry | Type of Investment(1) (2) | Principal Amount | Cost | Fair Value | |||||||||||
K-Mac Holdings Corp (0.6%)*(4) | Restaurants | First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 03/25) | $ | 3,317,739 | $ | 3,326,939 | $ | 3,261,337 | ||||||||
3,317,739 | 3,326,939 | 3,261,337 | ||||||||||||||
Kronos Inc. (1.9%)*(4) | Application Software | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.7% Cash, Due 11/23) | 11,393,155 | 11,436,797 | 11,276,033 | |||||||||||
11,393,155 | 11,436,797 | 11,276,033 | ||||||||||||||
LAC Intermediate, LLC (f/k/a Lighthouse Autism Center) (1.0%)*(5) (6) | Healthcare and Pharmaceuticals | First Lien Senior Secured Term Loan (LIBOR + 5.75%, 8.6% Cash, Due 10/24) | 6,141,976 | 5,886,573 | 5,676,926 | |||||||||||
Class A LLC Units (154,320 units) | 154,320 | 129,635 | ||||||||||||||
6,141,976 | 6,040,893 | 5,806,561 | ||||||||||||||
Lindstrom, LLC (Metric Enterprises, Inc.) (1.2%)*(5) (6) | Capital Equipment | First Lien Senior Secured Term Loan (LIBOR + 4.5%, 7.0% Cash, Due 09/24) | 7,005,454 | 6,957,196 | 7,005,454 | |||||||||||
7,005,454 | 6,957,196 | 7,005,454 | ||||||||||||||
LTI Holdings, Inc. (2.0%)*(4) | Industrial Conglomerates | First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 09/25) | 11,940,000 | 12,002,923 | 11,472,310 | |||||||||||
11,940,000 | 12,002,923 | 11,472,310 | ||||||||||||||
Mallinckrodt Plc (1.8%)*(3) (4) (5) | Health Care Services | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.4% Cash, Due 09/24) | 11,338,011 | 11,269,725 | 10,523,148 | |||||||||||
11,338,011 | 11,269,725 | 10,523,148 | ||||||||||||||
Men's Wearhouse, Inc. (The) (1.6%)*(3) (4) | Apparel Retail | First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 04/25) | 9,949,749 | 10,044,337 | 9,502,010 | |||||||||||
9,949,749 | 10,044,337 | 9,502,010 | ||||||||||||||
Micro Holding Corp. (1.8%)* | Internet Software & Services | First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 12/24)(5) | 2,706,042 | 2,718,461 | 2,651,921 | |||||||||||
First Lien Senior Secured Term Loan (LIBOR + 3.75%, 6.2% Cash, Due 09/24)(4) | 7,939,547 | 7,995,058 | 7,820,533 | |||||||||||||
10,645,589 | 10,713,519 | 10,472,454 | ||||||||||||||
Nautilus Power, LLC (0.6%)*(4) | Independent Power Producers & Energy Traders | First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.7% Cash, Due 05/24) | 3,363,889 | 3,379,920 | 3,361,366 | |||||||||||
3,363,889 | 3,379,920 | 3,361,366 | ||||||||||||||
NFP Corp. (1.4%)*(4) | Specialized Finance | First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 01/24) | 8,608,113 | 8,606,366 | 8,285,308 | |||||||||||
8,608,113 | 8,606,366 | 8,285,308 | ||||||||||||||
NGS US Finco, LLC (f/k/a Dresser Natural Gas Solutions) (2.0%)*(5) (6) | Natural Gas | First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.7% Cash, Due 10/25) | 12,085,097 | 12,028,478 | 11,830,737 | |||||||||||
12,085,097 | 12,028,478 | 11,830,737 | ||||||||||||||
NVA Holdings, Inc. (1.3%)*(4) | Health Care Facilities | First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 02/25) | 7,896,330 | 7,880,970 | 7,615,063 | |||||||||||
7,896,330 | 7,880,970 | 7,615,063 | ||||||||||||||