0001379785FALSE12/312022Q200013797852022-01-012022-06-3000013797852022-08-09xbrli:shares

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 June 30, 2022

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: N/A

Securities registered pursuant to Section 12(b) of the Act:

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

________________________________________________________

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.

Large accelerated filer			¨			Accelerated filer			¨
Non-accelerated filer			ý			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 August 9, 2022 was 109,227,791.

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BARINGS BDC, INC.

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

						Page
PART I – FINANCIAL INFORMATION
Item 1.			Financial Statements
			Unaudited Consolidated Balance Sheet as of June 30, 2022 and Consolidated Balance Sheet as of December 31, 2021			3
			Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021			4
			Unaudited Consolidated Statements of Changes in Net Assets for the Three and Six Months Ended June 30, 2022 and 2021			6
			Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021			8
			Unaudited Consolidated Schedule of Investments as of June 30, 2022			9
			Consolidated Schedule of Investments as of December 31, 2021			36
			Notes to Unaudited Consolidated Financial Statements			55
Item 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations			96
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			118
Item 4.			Controls and Procedures			120
PART II – OTHER INFORMATION
Item 1.			Legal Proceedings			121
Item 1A.			Risk Factors			121
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			121
Item 3.			Defaults Upon Senior Securities			122
Item 4.			Mine Safety Disclosures			122
Item 5.			Other Information			122
Item 6.			Exhibits			123
Signatures						124

2

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

Barings BDC, Inc.

Consolidated Balance Sheets

(in thousands, except share and per share data)

			June 30, 2022						December 31, 2021
			(Unaudited)
Assets:
Investments at fair value:
Non-Control / Non-Affiliate investments (cost of $2,025,944 and $1,494,031 as of June 30, 2022 and December 31, 2021, respectively)			$	1,928,010					$	1,490,113
Affiliate investments (cost of $307,332 and $267,967 as of June 30, 2022 and December 31, 2021, respectively)			322,321						288,069
Control investments (cost of $105,791 and $25,826 as of June 30, 2022 and December 31, 2021, respectively)			138,745						22,412
Total investments at fair value			2,389,076						1,800,594
Cash			138,092						49,987
Foreign currencies (cost of $60,029 and $34,069 as of June 30, 2022 and December 31, 2021, respectively)			59,678						34,266
Interest and fees receivable			77,235						33,645
Prepaid expenses and other assets			14,180						4,297
Credit support agreements (cost of $58,000 and $13,600 as of June 30, 2022 and December 31, 2021, respectively)			46,040						15,400
Deferred financing fees			3,982						2,985
Receivable from unsettled transactions			101,195						219,732
Total assets			$	2,829,478					$	2,160,906
Liabilities:
Accounts payable and accrued liabilities			$	12,300					$	2,341
Interest payable			6,731						5,704
Administrative fees payable			860						750
Base management fees payable			7,381						5,422
Incentive management fees payable			—						4,067
Derivative liabilities			2,135						1,160
Payable from unsettled transactions			14,594						26,786
Borrowings under credit facilities			814,380						655,189
Notes payable (net of deferred financing fees)			718,222						717,556
Total liabilities			1,576,603						1,418,975
Commitments and contingencies (Note 7)
Net Assets:
Common stock, $0.001 par value per share (150,000,000 shares authorized, 109,785,892 and 65,316,085 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively)			110						65
Additional paid-in capital			1,584,076						1,027,687
Total distributable earnings (loss)			(331,311)						(285,821)
Total net assets			1,252,875						741,931
Total liabilities and net assets			$	2,829,478					$	2,160,906
Net asset value per share			$	11.41					$	11.36

See accompanying notes.

3

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Barings BDC, Inc.

Unaudited Consolidated Statements of Operations

(in thousands, except share and per share data)

			Three Months Ended						Three Months Ended						Six Months Ended						Six Months Ended
			June 30, 2022						June 30, 2021						June 30, 2022						June 30, 2021
Investment income:
Interest income:
Non-Control / Non-Affiliate investments			$	40,010					$	26,597					$	71,634					$	51,694
Affiliate investments			411						109						584						109
Control investments			363						109						636						216
Short-term investments			—						4						—						15
Total interest income			40,784						26,819						72,854						52,034
Dividend income:
Non-Control / Non-Affiliate investments			63						33						186						33
Affiliate investments			7,183						362						14,753						433
Total dividend income			7,246						395						14,939						466
Fee and other income:
Non-Control / Non-Affiliate investments			4,924						2,412						7,147						4,385
Affiliate investments			26						1						39						1
Control investments			122						155						(918)						315
Total fee and other income			5,072						2,568						6,268						4,701
Payment-in-kind interest income:
Non-Control / Non-Affiliate investments			2,070						3,068						4,358						6,106
Affiliate investments			93						303						137						439
Control investments			311						—						778						—
Total payment-in-kind interest income			2,474						3,371						5,273						6,545
Interest income from cash			16						—						16						1
Total investment income			55,592						33,153						99,350						63,747
Operating expenses:
Interest and other financing fees			13,168						7,994						24,829						15,279
Base management fee (Note 2)			7,381						4,891						13,253						8,821
Incentive management fees (Note 2)			—						3,510						4,754						6,232
General and administrative expenses (Note 2)			3,269						2,200						5,727						4,501
Total operating expenses			23,818						18,595						48,563						34,833
Net investment income before taxes			31,774						14,558						50,787						28,914
Income taxes, including excise tax expense			—						—						6						(18)
Net investment income after taxes			31,774						14,558						50,781						28,932

4

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Barings BDC, Inc. Unaudited Consolidated Statements of Operations — (Continued) (in thousands, except share and per share data)
			Three Months Ended						Three Months Ended						Six Months Ended						Six Months Ended
			June 30, 2022						June 30, 2021						June 30, 2022						June 30, 2021
Realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreements and foreign currency transactions:
Net realized gains (losses):
Non-Control / Non-Affiliate investments			(6,701)						553						(6,951)						3,444
Affiliate investments			—						—						101						(77)
Control investments			(813)						—						(813)						—
Net realized gains (losses) on investments			(7,514)						553						(7,663)						3,367
Foreign currency transactions			(2,709)						(210)						(4,002)						(1,185)
Net realized gains (losses)			(10,223)						343						(11,665)						2,182
Net unrealized appreciation (depreciation):
Non-Control / Non-Affiliate investments			(65,428)						4,304						(94,016)						9,661
Affiliate investments			(13,435)						7,087						(440)						9,532
Control investments			17,050						1,368						31,696						(2,602)
Net unrealized appreciation (depreciation) on investments			(61,813)						12,759						(62,760)						16,591
Credit support agreements			(13,361)						2,300						(13,760)						700
Foreign currency transactions			30,520						(650)						35,332						3,392
Net unrealized appreciation (depreciation)			(44,654)						14,409						(41,188)						20,683
Net realized gains (losses) and unrealized appreciation (depreciation) on investments, credit support agreements and foreign currency transactions			(54,877)						14,752						(52,853)						22,865
Provision for income taxes			(1,890)						(2)						(1,890)						(1)
Net increase (decrease) in net assets resulting from operations			$	(24,993)					$	29,308					$	(3,962)					$	51,796
Net investment income per share—basic and diluted			$	0.29					$	0.22					$	0.52					$	0.44
Net increase (decrease) in net assets resulting from operations per share—basic and diluted			$	(0.23)					$	0.45					$	(0.04)					$	0.79
Dividends/distributions per share:
Total dividends/distributions per share			$	0.24					$	0.20					$	0.47					$	0.39
Weighted average shares outstanding—basic and diluted			110,759,443						65,316,085						96,785,517						65,316,085

See accompanying notes.

5

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Barings BDC, Inc.

Unaudited Consolidated Statements of Changes in Net Assets

(in thousands, except share amounts)

 

			Common Stock												Additional Paid-In Capital						Total Distributable Earnings (Loss)						Total Net Assets
Three Months Ended June 30, 2021			Number of Shares						Par Value
Balance, March 31, 2021			65,316,085						$	65					$	1,027,707					$	(299,890)					$	727,882
Net investment income			—						—						—						14,558						14,558
Net realized gain on investments / foreign currency transactions			—						—						—						343						343
Net unrealized appreciation of investments / CSA / foreign currency transactions			—						—						—						14,409						14,409
Provision for taxes			—						—						—						(2)						(2)
Dividends / distributions			—						—						—						(13,063)						(13,063)
Balance, June 30, 2021			65,316,085						$	65					$	1,027,707					$	(283,645)					$	744,127

			Common Stock												Additional Paid-In Capital						Total Distributable Earnings (Loss)						Total Net Assets
Three Months Ended June 30, 2022			Number of Shares						Par Value
Balance, March 31, 2022			111,095,334						$	111					$	1,597,257					$	(279,812)					$	1,317,556
Net investment income			—						—						—						31,774						31,774
Net realized loss on investments / foreign currency transactions			—						—						—						(10,223)						(10,223)
Net unrealized depreciation of investments / CSAs / foreign currency transactions			—						—						—						(44,654)						(44,654)
Provision for taxes			—						—						—						(1,890)						(1,890)
Dividends / distributions			—						—						—						(26,506)						(26,506)
Deemed contribution - from Adviser (See Note 9)			—												(174)						—						(174)
Purchases of shares in repurchase plan			(1,309,442)						(1)						(13,007)						—						(13,008)
Balance, June 30, 2022			109,785,892						$	110					$	1,584,076					$	(331,311)					$	1,252,875

See accompanying notes.

6

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Barings BDC, Inc.

Unaudited Consolidated Statements of Changes in Net Assets — (Continued)

(in thousands, except share amounts)

			Common Stock												Additional Paid-In Capital						Total Distributable Earnings (Loss)						Total Net Assets
Six Months Ended June 30, 2021			Number of Shares						Par Value
Balance, December 31, 2020			65,316,085						$	65					$	1,027,707					$	(309,968)					$	717,804
Net investment income			—						—						—						28,932						28,932
Net realized gain on investments / foreign currency transactions			—						—						—						2,182						2,182
Net unrealized appreciation of investments / CSA / foreign currency transactions			—						—						—						20,683						20,683
Provision for taxes			—						—						—						(1)						(1)
Dividends / distributions			—						—						—						(25,473)						(25,473)
Balance, June 30, 2021			65,316,085						$	65					$	1,027,707					$	(283,645)					$	744,127

			Common Stock												Additional Paid-In Capital						Total Distributable Earnings (Loss)						Total Net Assets
Six Months Ended June 30, 2022			Number of Shares						Par Value
Balance, December 31, 2021			65,316,085						$	65					$	1,027,687					$	(285,821)					$	741,931
Net investment income			—						—						—						50,781						50,781
Net realized loss on investments / foreign currency transactions			—						—						—						(11,665)						(11,665)
Net unrealized depreciation of investments / CSAs / foreign currency transactions			—						—						—						(41,188)						(41,188)
Provision for taxes			—						—						—						(1,890)						(1,890)
Dividends / distributions			—						—						—						(41,528)						(41,528)
Deemed contribution - CSA (See Note 2)			—						—						44,400						—						44,400
Deemed contribution - from Adviser (See Note 9)			—						—						27,729						—						27,729
Public offering of common stock			45,986,926						46						499,372						—						499,418
Purchases of shares in repurchase plan			(1,517,119)						(1)						(15,112)						—						(15,113)
Balance, June 30, 2022			109,785,892						$	110					$	1,584,076					$	(331,311)					$	1,252,875

See accompanying notes.

7

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Barings BDC, Inc.

Unaudited Consolidated Statements of Cash Flows 

(in thousands)

			Six Months Ended						Six Months Ended
			June 30, 2022						June 30, 2021
Cash flows from operating activities:
Net increase in net assets resulting from operations			$	(3,962)					$	51,797
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of portfolio investments			(708,703)						(538,012)
Net cash acquired from mergers (cash consideration paid) (See Note 9)			101,896						—
Transaction costs from mergers (See Note 9)			(6,804)						—
Repayments received/sales of portfolio investments			603,169						322,357
Purchases of short-term investments			—						(217,559)
Sales of short-term investments			—						272,542
Loan origination and other fees received			11,492						10,024
Net realized (gain) loss on investments			7,663						(3,367)
Net realized loss on foreign currency transactions			4,002						1,185
Net unrealized (appreciation) depreciation on investments			62,760						(16,591)
Net unrealized (appreciation) depreciation of CSAs			13,760						(700)
Net unrealized appreciation on foreign currency transactions			(35,332)						(3,392)
Payment-in-kind interest			(5,273)						(6,545)
Amortization of deferred financing fees			1,498						713
Accretion of loan origination and other fees			(5,313)						(3,513)
Amortization / accretion of purchased loan premium / discount			(1,240)						(3,822)
Changes in operating assets and liabilities:
Interest and fees receivables			(50,492)						(6,513)
Prepaid expenses and other assets			253						254
Accounts payable and accrued liabilities			(3,077)						142
Interest payable			1,033						2,011
Net cash used in operating activities			(12,670)						(138,989)
Cash flows from financing activities:
Borrowings under credit facilities			184,657						110,731
Repayments of credit facilities			—						(157,861)
Proceeds from notes			—						150,000
Financing fees paid			(1,829)						(191)
Purchases of shares in repurchase plan			(15,113)						—
Cash dividends / distributions paid			(41,528)						(25,473)
Net cash provided by (used in) financing activities			126,187						77,206
Net increase (decrease) in cash and foreign currencies			113,517						(61,783)
Cash and foreign currencies, beginning of period			84,253						92,487
Cash and foreign currencies, end of period			$	197,770					$	30,704
Supplemental Information:
Cash paid for interest			$	21,766					$	12,186
Supplemental non-cash information
Acquisitions (See Note 9):
Fair value of Sierra net assets acquired, net of cash			$	(435,811)					$	—
Transaction Costs			3,756						—
Common stock issued in acquisition of Sierra net assets			499,418						—
Credit support agreement (See Note 2)			(44,400)						—
Deemed contribution -from Adviser			27,729						—
Deemed contributions - CSA			44,400						—

See accompanying notes.

8

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Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments

June 30, 2022

(Amounts in thousands, except share amounts)

Portfolio Company(6)						Industry						Investment Type (1) (2)						Interest						Acq. Date						Maturity Date						Principal Amount						Cost						Fair Value						% of Net Assets *						Notes
Non–Control / Non–Affiliate Investments:
1WorldSync, Inc.						IT Consulting & Other Services						First Lien Senior Secured Term Loan						LIBOR + 5.75%, 6.8% Cash						7/19						7/25						$	16,338					$	16,121					$	16,335					1.3		%				(7)(8)(10)
																																				16,338						16,121						16,335
Accelerant Holdings						Banking, Finance, Insurance & Real Estate						Class A Convertible Preferred Equity (5,000 shares)						N/A						1/22						N/A												5,000						5,202						0.4		%				(7)
																																										5,000						5,202
Accelerate Learning, Inc.						Education Services						First Lien Senior Secured Term Loan						LIBOR + 5.00%, 6.7% Cash						12/18						12/24						7,568						7,498						7,454						0.6		%				(7)(8)(9)
																																				7,568						7,498						7,454
Acclime Holdings HK Limited						Business services						First Lien Senior Secured Term Loan						LIBOR + 6.50%, 7.0% Cash						8/21						7/27						2,500						2,438						2,495						0.2		%				(3)(7)(8)(11)
																																				2,500						2,438						2,495
Accurus Aerospace Corporation						Aerospace & Defense						First Lien Senior Secured Term Loan						LIBOR + 5.75%, 7.7% Cash						4/22						3/28						22,316						21,992						21,982						1.7		%				(7)(8)(10)
												Revolver						LIBOR + 5.75%, 7.7% Cash						4/22						3/28						—						(33)						(35)						—		%				(7)(8)(10)
												Common Stock (437,623.30 shares)						N/A						4/22						N/A												438						438						—		%				(7)
																																				22,316						22,397						22,385
Acogroup						Business Services						First Lien Senior Secured Term Loan						EURIBOR + 7.50%, 7.5% Cash						3/22						10/26						22,195						22,786						21,693						1.7		%				(3)(7)(8)(14)
																																				22,195						22,786						21,693
ADB Safegate						Aerospace & Defense						Second Lien Senior Secured Term Loan						LIBOR + 7.75%, 9.4% Cash						8/21						10/25						5,500						5,136						4,989						0.4		%				(3)(8)(10)
																																				5,500						5,136						4,989
Advantage Software Company (The), LLC						Advertising, Printing & Publishing						Class A1 Partnership Units (8,717.76 units)						N/A						12/21						N/A												280						880						0.1		%				(7)
												Class A2 Partnership Units (2,248.46 units)						N/A						12/21						N/A												72						227						—		%				(7)
												Class B1 Partnership Units (8,717.76 units)						N/A						12/21						N/A												9						—						—		%				(7)
												Class B2 Partnership Units (2,248.46 units)						N/A						12/21						N/A												2						—						—		%				(7)
																																										363						1,107
Air Canada 2020-2 Class B Pass Through Trust						Airlines						Structured Secured Note - Class B						9.0% Cash						9/20						10/25						5,505						5,505						5,674						0.4		%
																																				5,505						5,505						5,674
Air Comm Corporation, LLC						Aerospace & Defense						First Lien Senior Secured Term Loan						SOFR + 5.75%, 8.6% Cash						6/21						7/27						11,482						11,255						11,285						0.9		%				(7)(8)(18)
																																				11,482						11,255						11,285
AIT Worldwide Logistics Holdings, Inc.						Transportation Services						Second Lien Senior Secured Term Loan						LIBOR + 7.50%, 9.8% Cash						4/21						4/29						6,460						6,332						6,202						0.5		%				(7)(8)(10)
												Partnership Units (348.68 units)						N/A						4/21						N/A												349						621						—		%				(7)
																																				6,460						6,681						6,823
Alpine SG, LLC						High Tech Industries						First Lien Senior Secured Term Loan						SOFR + 5.50%, 7.0% Cash						2/22						11/27						27,521						26,971						26,970						2.1		%				(7)(8)(17) (32)
																																				27,521						26,971						26,970
Alpine US Bidco LLC						Agricultural Products						Second Lien Senior Secured Term Loan						LIBOR + 9.00%, 10.1% Cash						5/21						5/29						18,157						17,666						16,522						1.3		%				(7)(8)(9)
																																				18,157						17,666						16,522
AMMC CLO 22, Limited Series 2018-22A						Multi-Sector Holdings						Subordinated Structured Notes						Residual Interest, current yield 12.61%						2/22						4/31						7,222						4,558						3,394						0.3		%				(3)(32)
																																				7,222						4,558						3,394

9

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Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2022

(Amounts in thousands, except share amounts)

Portfolio Company(6)						Industry						Investment Type (1) (2)						Interest						Acq. Date						Maturity Date						Principal Amount						Cost						Fair Value						% of Net Assets *						Notes
AMMC CLO 23, Ltd. Series 2020-23A						Multi-Sector Holdings						Subordinated Structured Notes						Residual Interest, current yield 12.35%						2/22						10/31						$	2,000					$	1,910					$	1,509					0.1		%				(3)(32)
																																				2,000						1,910						1,509
Amtech LLC						Technology						First Lien Senior Secured Term Loan						LIBOR + 5.50%, 6.6% Cash						11/21						11/27						2,279						2,211						2,220						0.2		%				(7)(8)(9)
												Revolver						LIBOR + 5.50%, 6.6% Cash						11/21						11/27						—						(12)						(11)						—		%				(7)(8)(10)
																																				2,279						2,199						2,209
Anagram Holdings, LLC						Chemicals, Plastics, & Rubber						First Lien Senior Secured Note						10.0% Cash, 5.0% PIK						8/20						8/25						14,755						13,917						15,382						1.2		%
																																				14,755						13,917						15,382
AnalytiChem Holding GmbH						Chemicals						First Lien Senior Secured Term Loan						EURIBOR + 6.50%, 6.5% Cash						11/21						11/28						7,558						7,777						7,369						0.6		%				(3)(7)(8)(14)
												First Lien Senior Secured Term Loan						EURIBOR + 6.50%, 6.5% Cash						11/21						12/28						723						789						705						0.1		%				(3)(7)(8)(14)
												First Lien Senior Secured Term Loan						EURIBOR + 6.50%, 6.5% Cash						4/22						10/28						5,626						5,711						5,463						0.4		%				(3)(7)(8)(14)
												First Lien Senior Secured Term Loan						LIBOR + 6.50%, 7.5% Cash						6/22						10/28						1,019						1,019						993						0.1		%				(3)(7)(8)(10)
												Revolver						EURIBOR + 6.50%, 6.5% Cash						4/22						10/23						—						(8)						(9)						—		%				(3)(7)(8)(14)
																																				14,926						15,288						14,521
Anju Software, Inc.						Application Software						First Lien Senior Secured Term Loan						LIBOR + 7.25%, 8.9% Cash						2/19						2/25						13,458						13,312						12,691						1.0		%				(7)(8)(9)
																																				13,458						13,312						12,691
Apex Bidco Limited						Business Equipment & Services						First Lien Senior Secured Term Loan						GBP LIBOR + 6.25%, 7.4% Cash						1/20						1/27						1,770						1,872						1,770						0.1		%				(3)(7)(8)(12)
												Subordinated Senior Unsecured Term Loan						8.0% PIK						1/20						7/27						259						275						259						—		%				(3)(7)
																																				2,029						2,147						2,029
Apidos CLO XXIV, Series 2016-24A						Multi-Sector Holdings						Subordinated Structured Notes						Residual Interest, current yield 20.96%						2/22						10/30						18,358						7,222						5,884						0.5		%				(3)(32)
																																				18,358						7,222						5,884
APOG Bidco Pty Ltd						Healthcare						Second Lien Senior Secured Term Loan						BBSY + 7.25%, 8.4% Cash						4/22						3/30						2,134						2,277						2,091						0.2		%				(3)(7)(8)(22)
																																				2,134						2,277						2,091
Aptus 1829. GmbH						Chemicals, Plastics, and Rubber						First Lien Senior Secured Term Loan						EURIBOR + 6.50%, 6.5% Cash						9/21						9/27						4,981						5,459						4,871						0.4		%				(3)(7)(8)(14)
												Preferred Stock (13 shares)						N/A						9/21						N/A												120						102						—		%				(3)(7)
												Common Stock (48 shares)						N/A						9/21						N/A												12						10						—		%				(3)(7)
																																				4,981						5,591						4,983
Apus Bidco Limited						Banking, Finance, Insurance & Real Estate						First Lien Senior Secured Term Loan						SONIA + 5.50%, 7.0% Cash						2/21						3/28						3,498						3,880						3,432						0.3		%				(3)(7)(8)(21)
																																				3,498						3,880						3,432
AQA Acquisition Holding, Inc.						High Tech Industries						Second Lien Senior Secured Term Loan						LIBOR + 7.50%, 9.2% Cash						3/21						3/29						20,000						19,536						19,688						1.5		%				(7)(8)(9)
																																				20,000						19,536						19,688
Aquavista Watersides 2 LTD						Transportation Services						First Lien Senior Secured Term Loan						SONIA + 6.00%, 6.9% Cash						12/21						12/28						5,417						5,721						5,218						0.4		%				(3)(7)(8)(21)
												Revolver						SONIA + 6.00%, 6.9% Cash						12/21						12/22						—						(1)						(11)						—		%				(3)(7)(8)(20)
												Second Lien Senior Secured Term Loan						SONIA + 10.5% PIK						12/21						12/28						1,429						1,526						1,395						0.1		%				(3)(7)(8)(21)
																																				6,846						7,246						6,602
Arch Global Precision LLC						Industrial Machinery						First Lien Senior Secured Term Loan						LIBOR + 4.75%, 7.0% Cash						4/19						4/26						9,201						9,197						9,182						0.7		%				(7)(8)(10)
																																				9,201						9,197						9,182

10

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Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2022

(Amounts in thousands, except share amounts)

Portfolio Company(6)						Industry						Investment Type (1) (2)						Interest						Acq. Date						Maturity Date						Principal Amount						Cost						Fair Value						% of Net Assets *						Notes
Archimede						Consumer Services						First Lien Senior Secured Term Loan						EURIBOR + 5.50%, 5.7% Cash						10/20						10/27						$	6,168					$	6,440					$	6,014					0.5		%				(3)(7)(8)(15)
																																				6,168						6,440						6,014
Argus Bidco Limited						High Tech Industries						First Lien Senior Secured Term Loan						LIBOR + 5.50%, 5.8% Cash						5/21						12/27						672						655						672						0.1		%				(3)(7)(8)(10)
												First Lien Senior Secured Term Loan						SONIA + 5.50%, 6.2% Cash						12/20						12/27						2,405						2,564						2,405						0.2		%				(3)(7)(8)(20)
																																				3,077						3,219						3,077
Armstrong Transport Group (Pele Buyer, LLC )						Air Freight & Logistics						First Lien Senior Secured Term Loan						LIBOR + 4.50%, 6.2% Cash						6/19						6/24						4,000						3,952						3,939						0.3		%				(7)(8)(9)
																																				4,000						3,952						3,939
ASPEQ Heating Group LLC						Building Products, Air & Heating						First Lien Senior Secured Term Loan						LIBOR + 5.25%, 7.5% Cash						11/19						11/25						8,412						8,336						8,412						0.7		%				(7)(8)(10)
																																				8,412						8,336						8,412
Astra Bidco Limited						Healthcare						First Lien Senior Secured Term Loan						SONIA + 5.75%, 7.2% Cash						11/21						11/28						1,981						2,098						1,915						0.1		%				(3)(7)(8)(20)
																																				1,981						2,098						1,915
Auxi International						Commercial Finance						First Lien Senior Secured Term Loan						EURIBOR + 7.25%, 7.3% Cash						12/19						12/26						1,464						1,523						1,320						0.1		%				(3)(7)(8)(15)
												First Lien Senior Secured Term Loan						SONIA + 7.25%, 7.9% Cash						4/21						12/26						814						899						734						0.1		%				(3)(7)(8)(21)
																																				2,278						2,422						2,054
Avance Clinical Bidco Pty Ltd						Healthcare						First Lien Senior Secured Term Loan						BBSY + 5.50%, 6.0% Cash						11/21						11/27						2,428						2,409						2,338						0.2		%				(3)(7)(8)(23)
																																				2,428						2,409						2,338
Aviation Technical Services, Inc.						Aerospace & Defense						Second Lien Senior Secured Term Loan						LIBOR + 2.00%, 3.7% Cash, 6.5% PIK						02/22						3/25						27,391						26,049						26,487						2.1		%				(7)(8)(9)(32)
																																				27,391						26,049						26,487
AVSC Holding Corp.						Advertising						First Lien Senior Secured Term Loan						LIBOR + 3.25%, 5.1% Cash, 0.3% PIK						08/18						3/25						4,848						4,454						4,155						0.3		%				(8)(10)
												First Lien Senior Secured Term Loan						LIBOR + 4.50%, 6.1% Cash, 1.0% PIK						08/18						10/26						748						698						646						0.1		%				(8)(10)
												First Lien Senior Secured Term Loan						5.0% Cash, 10.0% PIK						11/20						10/26						5,794						5,691						6,113						0.5		%
																																				11,390						10,843						10,914
Azalea Buyer, Inc.						Technology						First Lien Senior Secured Term Loan						LIBOR + 5.25%, 6.8% Cash						11/21						11/27						4,583						4,481						4,493						0.3		%				(7)(8)(10)
												Revolver						LIBOR + 5.25%, 6.8% Cash						11/21						11/27						58						49						50						—		%				(7)(8)(10)
												Subordinated Term Loan						12.0% PIK						11/21						5/28						1,310						1,286						1,288						0.1		%				(7)
												Common Stock (192,307.7 shares)						N/A						11/21						N/A												192						156						—		%				(7)
																																				5,951						6,008						5,987
Bariacum S.A						Consumer Products						First Lien Senior Secured Term Loan						EURIBOR + 5.50%, 5.5% Cash						11/21						11/28						5,959						6,250						5,786						0.5		%				(3)(7)(8)(14)
																																				5,959						6,250						5,786
Benify (Bennevis AB)						High Tech Industries						First Lien Senior Secured Term Loan						STIBOR + 5.25%, 5.3% Cash						7/19						7/26						1,136						1,223						1,136						0.1		%				(3)(7)(8)(26)
																																				1,136						1,223						1,136
Beyond Risk Management, Inc.						Other Financial						First Lien Senior Secured Term Loan						LIBOR + 4.50%, 6.8% Cash						10/21						10/27						2,560						2,488						2,484						0.2		%				(7)(8)(10)
																																				2,560						2,488						2,484
Bidwax						Non-durable Consumer Goods						First Lien Senior Secured Term Loan						EURIBOR + 6.45%, 6.5% Cash						2/21						2/28						7,318						8,076						7,150						0.6		%				(3)(7)(8)(15)
																																				7,318						8,076						7,150

11

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Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2022

(Amounts in thousands, except share amounts)

Portfolio Company(6)						Industry						Investment Type (1) (2)						Interest						Acq. Date						Maturity Date						Principal Amount						Cost						Fair Value						% of Net Assets *						Notes
BigHand UK Bidco Limited						High Tech Industries						First Lien Senior Secured Term Loan						SOFR +5.50%, 6.3% Cash						1/21						1/28						$	2,156					$	2,095					$	2,115					0.2		%				(3)(7)(8)(17)
												First Lien Senior Secured Term Loan						SOFR +5.50%, 7.0% Cash						1/21						1/28						377						377						370						—		%				(3)(7)(8)(17)
												First Lien Senior Secured Term Loan						SONIA + 5.50%, 6.7% Cash						1/21						1/28						815						891						800						0.1		%				(3)(7)(8)(20)
																																				3,348						3,363						3,285
Bounteous, Inc.						Technology						First Lien Senior Secured Term Loan						LIBOR + 5.00%, 7.2% Cash						8/21						8/27						1,902						1,818						1,828						0.1		%				(7)(8)(10)
																																				1,902						1,818						1,828
Brightline Trains Florida LLC						Transportation						Senior Secured Note						8.0% Cash						8/21						1/28						5,000						5,000						4,737						0.4		%				(7)
																																				5,000						5,000						4,737
Brightpay Limited						Technology						First Lien Senior Secured Term Loan						EURIBOR + 5.25%, 5.3% Cash						10/21						10/28						1,963						2,109						1,923						0.1		%				(3)(7)(8)(14)
																																				1,963						2,109						1,923
BrightSign LLC						Media & Entertainment						First Lien Senior Secured Term Loan						LIBOR + 5.75%, 8.0% Cash						10/21						10/27						6,777						6,716						6,601						0.5		%				(7)(8)(10)
												Revolver						LIBOR + 5.75%, 8.0% Cash						10/21						10/27						—						(12)						(35)						—		%				(7)(8)(10)
												LLC units (1,107,492.71 units)						N/A						10/21						N/A												1,107						1,012						0.1		%				(7)
																																				6,777						7,811						7,578
British Airways 2020-1 Class B Pass Through Trust						Airlines						Structured Secured Note - Class B						8.4% Cash						11/20						11/28						756						756						813						0.1		%
																																				756						756						813
British Engineering Services Holdco Limited						Commercial Services & Supplies						First Lien Senior Secured Term Loan						SONIA + 7.0%, 9.3% Cash						12/20						12/27						13,925						15,107						13,582						1.1		%				(3)(7)(8)(21)
																																				13,925						15,107						13,582
Brook & Whittle Holding Corp.						Containers, Packaging & Glass						First Lien Senior Secured Term Loan						LIBOR + 4.00%, 5.2% Cash						2/22						12/28						2,839						2,819						2,658						0.2		%				(8)(10)(32)
																																				2,839						2,819						2,658
Brown Machine Group Holdings, LLC						Industrial Equipment						First Lien Senior Secured Term Loan						LIBOR + 5.25%, 7.5% Cash						10/18						10/24						6,281						6,244						6,281						0.5		%				(7)(8)(10)
																																				6,281						6,244						6,281
BVI Medical, Inc.						Healthcare						Second Lien Senior Secured Term Loan						EURIBOR + 9.50%, 9.5% Cash						6/22						6/26						9,699						9,365						9,311						0.7		%				(7)(8)(14)
																																				9,699						9,365						9,311
Cadent, LLC (f/k/a Cross MediaWorks)						Media & Entertainment						First Lien Senior Secured Term Loan						LIBOR + 5.00%, 6.7% Cash						9/18						9/23						6,751						6,734						6,751						0.5		%				(7)(8)(9)
																																				6,751						6,734						6,751
CAi Software, LLC						Technology						First Lien Senior Secured Term Loan						LIBOR + 6.25%, 8.4% Cash						12/21						12/28						9,034						8,865						8,854						0.7		%				(7)(8)(10)
												Revolver						LIBOR + 6.25%, 8.4% Cash						12/21						12/27						—						(17)						(19)						—		%				(7)(8)(10)
																																				9,034						8,848						8,835
Canadian Orthodontic Partners Corp.						Healthcare						First Lien Senior Secured Term Loan						CDOR + 6.50%, 9.7% Cash						6/21						3/26						1,645						1,737						1,593						0.1		%				(3)(7)(8)(25)
												Class A Equity (500,000 units)						N/A						5/22						N/A												389						388						—		%				(3)(7)
												Class C - Warrants (74,712.64 units)						N/A						5/22						N/A												—						—						—		%				(3)(7)
																																				1,645						2,126						1,981
Cardenas Markets, LLC						Retail						First Lien Senior Secured Term Loan						LIBOR + 6.25%, 7.3% Cash						2/22						6/27						1,985						1,980						1,985						0.2		%				(7)(8)(10) (32)
																																				1,985						1,980						1,985

12

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Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2022

(Amounts in thousands, except share amounts)

Portfolio Company(6)						Industry						Investment Type (1) (2)						Interest						Acq. Date						Maturity Date						Principal Amount						Cost						Fair Value						% of Net Assets *						Notes
Caribou Holding Company, LLC						Technology						First Lien Senior Secured Term Loan						SOFR + 7.64%, 8.6% Cash						4/22						4/27						$	4,318					$	4,256					$	4,253					0.3		%				(3)(7)(8)(17)
												LLC Units (681,818 units)						N/A						4/22						N/A												682						682						0.1		%				(3)(7)
																																				4,318						4,938						4,935
Carlson Travel, Inc						Business Travel Management						First Lien Senior Secured Note						8.5% Cash						11/21						11/26						6,050						5,686						5,438						0.4		%
												Common Stock (94,155 shares)						N/A						11/21						N/A												4,194						4,171						0.3		%
																																				6,050						9,880						9,609
Centralis Finco S.a.r.l.						Diversified Financial Services						First Lien Senior Secured Term Loan						EURIBOR + 5.25%, 5.3% Cash						5/20						5/27						742						741						732						0.1		%				(3)(7)(8)(14)
																																				742						741						732
Ceres Pharma NV						Pharma-ceuticals						First Lien Senior Secured Term Loan						EURIBOR + 5.50%, 5.5% Cash						10/21						10/28						1,261						1,300						1,186						0.1		%				(3)(7)(8)(14)
																																				1,261						1,300						1,186
CGI Parent, LLC						Business Equipment & Services						First Lien Senior Secured Term Loan						LIBOR + 5.50%, 6.9% Cash						2/22						2/28						17,751						17,415						17,441						1.4		%				(7)(8)(10)
												Revolver						LIBOR + 5.50%, 6.9% Cash						2/22						2/28						—						(31)						(29)						—		%				(7)(8)(10)
												Preferred Stock (551 shares)						N/A						2/22						N/A												551						806						0.1		%				(7)
																																				17,751						17,935						18,218
Cineworld Group PLC						Leisure Products						Super Senior Senior Secured Term Loan						7.0% Cash, 8.3% PIK						11/20						5/24						1,862						1,688						2,077						0.2		%				(3)
												Super Senior Senior Secured Term Loan						LIBOR + 8.25%, 10.1% Cash						7/21						2/25						994						967						1,033						0.1		%				(3)(7)(8)(11)
												Warrants (553,375 units)						N/A						12/20						11/25												102						57						—		%				(3)
																																				2,856						2,757						3,167
Classic Collision (Summit Buyer, LLC)						Auto Collision Repair Centers						First Lien Senior Secured Term Loan						LIBOR + 5.25%, 8.1% Cash						1/20						1/26						6,305						6,210						6,212						0.5		%				(7)(8)(11)
												First Lien Senior Secured Term Loan						LIBOR + 5.25%, 8.1% Cash						1/20						4/26						344						334						335						—		%				(7)(8)(11)
																																				6,649						6,544						6,547
CM Acquisitions Holdings Inc.						Internet & Direct Marketing						First Lien Senior Secured Term Loan						SOFR + 4.75%, 7.3% Cash						5/19						5/25						19,018						18,838						18,771						1.5		%				(7)(8)(17)
																																				19,018						18,838						18,771
CMT Opco Holding, LLC (Concept Machine)						Distributors						First Lien Senior Secured Term Loan						LIBOR + 5.00%, 6.8% Cash						1/20						1/25						4,134						4,088						4,006						0.3		%				(7)(8)(11)
												LLC Units (8,782 units)						N/A						1/20						N/A												352						175						—		%				(7)
																																				4,134						4,440						4,181
Coastal Marina Holdings, LLC						Other Financial						Subordinated Term Loan						10.0% PIK						11/21						11/31						5,023						4,601						4,561						0.4		%				(7)
												Subordinated Term Loan						8.00% Cash						11/21						11/31						13,044						11,893						11,830						0.9		%				(7)
												LLC Units (547,591.0 units)						N/A						11/21						N/A												9,045						10,140						0.8		%				(7)
																																				18,067						25,539						26,531
Cobham Slip Rings SAS						Diversified Manufacturing						First Lien Senior Secured Term Loan						LIBOR + 6.25%, 8.5% Cash						11/21						11/28						1,303						1,274						1,278						0.1		%				(3)(7)(8)(10)
																																				1,303						1,274						1,278

13

---

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2022

(Amounts in thousands, except share amounts)

Portfolio Company(6)						Industry						Investment Type (1) (2)						Interest						Acq. Date						Maturity Date						Principal Amount						Cost						Fair Value						% of Net Assets *						Notes
Command Alkon (Project Potter Buyer, LLC)						Software						First Lien Senior Secured Term Loan						LIBOR + 7.0%, 8.7% Cash						4/20						4/26						$	1,622					$	1,583					$	1,596					0.1		%				(7)(8)(9)
												First Lien Senior Secured Term Loan						LIBOR + 7.0%, 8.7% Cash						4/20						4/27						12,087						11,808						11,894						0.9		%				(7)(8)(9)
												Class B Partnership Units (33,324.69 units)						N/A						4/20						N/A												—						237						—		%				(7)
																																				13,709						13,391						13,727
Compass Precision, LLC						Aerospace & Defense						Senior Subordinated Term Loan						11.0% Cash, 1.0% PIK						4/22						10/25						376						369						368						—		%				(7)
												LLC Units (46,085.6 units)						N/A						4/22						N/A												125						127						—		%				(7)
																																				376						494						495
Comply365, LLC						Technology						First Lien Senior Secured Term Loan						SOFR + 5.50%, 6.5% Cash						4/22						4/28						13,723						13,456						13,448						1.0		%				(7)(8)(17)
												Revolver						SOFR + 5.50%, 6.5% Cash						4/22						4/28						—						(21)						(22)						—		%				(7)(8)(17)
																																				13,723						13,435						13,426
Contabo Finco S.À R.L						Internet Software & Services						First Lien Senior Secured Term Loan						EURIBOR + 5.25%, 5.3% Cash						11/21						10/26						5,469						5,804						5,457						0.4		%				(3)(7)(8)(14)
																																				5,469						5,804						5,457
Core Scientific, Inc.						Technology						First Lien Senior Secured Term Loan						9.8% Cash						3/22						3/25						30,444						30,728						29,714						2.3		%				(3)(7)
																																				30,444						30,728						29,714