10-Q: Quarterly report pursuant to Section 13 or 15(d)
Published on October 30, 2019
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, 2019
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. (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 October 29, 2019 was 49,285,229.
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, 2019 |
December 31, 2018 |
||||||
(Unaudited) |
|||||||
Assets: |
|||||||
Investments at fair value: |
|||||||
Non-Control / Non-Affiliate investments (cost of $1,123,493,075 and $1,128,694,715 as of September 30, 2019 and December 31, 2018, respectively) |
$ |
1,096,632,222 |
$ |
1,076,631,804 |
|||
Affiliate investments (cost of $10,158,270 as of September 30, 2019) |
10,036,300 |
— |
|||||
Short-term investments (cost of $51,552,247 and $45,223,941 as of September 30, 2019 and December 31, 2018, respectively) |
51,552,247 |
45,223,941 |
|||||
Total investments at fair value |
1,158,220,769 |
1,121,855,745 |
|||||
Cash |
12,838,103 |
12,426,982 |
|||||
Interest and fees receivable |
5,413,193 |
6,008,700 |
|||||
Prepaid expenses and other assets |
1,702,920 |
4,123,742 |
|||||
Deferred financing fees |
5,654,274 |
251,908 |
|||||
Receivable from unsettled transactions |
30,322,297 |
22,909,998 |
|||||
Total assets |
$ |
1,214,151,556 |
$ |
1,167,577,075 |
|||
Liabilities: |
|||||||
Accounts payable and accrued liabilities |
$ |
5,393,118 |
$ |
5,327,249 |
|||
Interest payable |
2,893,316 |
749,525 |
|||||
Payable from unsettled transactions |
2,621,367 |
28,533,014 |
|||||
Borrowings under credit facilities |
291,767,549 |
570,000,000 |
|||||
Debt securitization |
339,031,226 |
— |
|||||
Total liabilities |
641,706,576 |
604,609,788 |
|||||
Commitments and contingencies (Note 10) |
|||||||
Net Assets: |
|||||||
Common stock, $0.001 par value per share (150,000,000 shares authorized, 49,418,542 and 51,284,064 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively) |
49,419 |
51,284 |
|||||
Additional paid-in capital |
866,351,909 |
884,894,249 |
|||||
Total distributable earnings (loss) |
(293,956,348 |
) |
(321,978,246 |
) |
|||
Total net assets |
572,444,980 |
562,967,287 |
|||||
Total liabilities and net assets |
$ |
1,214,151,556 |
$ |
1,167,577,075 |
|||
Net asset value per share |
$ |
11.58 |
$ |
10.98 |
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, 2019 |
September 30, 2018 |
September 30, 2019 |
September 30, 2018 |
||||||||||||
Investment income: |
|||||||||||||||
Interest income: |
|||||||||||||||
Non-Control / Non-Affiliate investments |
$ |
18,169,034 |
$ |
8,769,282 |
$ |
54,853,833 |
$ |
45,282,969 |
|||||||
Affiliate investments |
— |
669,553 |
— |
5,580,051 |
|||||||||||
Control investments |
— |
91,678 |
— |
644,805 |
|||||||||||
Short-term investments |
279,908 |
535,153 |
703,947 |
535,153 |
|||||||||||
Total interest income |
18,448,942 |
10,065,666 |
55,557,780 |
52,042,978 |
|||||||||||
Dividend income: |
|||||||||||||||
Non-Control / Non-Affiliate investments |
4,221 |
— |
8,932 |
252,369 |
|||||||||||
Affiliate investments |
— |
303,062 |
— |
642,187 |
|||||||||||
Total dividend income |
4,221 |
303,062 |
8,932 |
894,556 |
|||||||||||
Fee and other income: |
|||||||||||||||
Non-Control / Non-Affiliate investments |
848,792 |
304,835 |
1,669,819 |
4,225,905 |
|||||||||||
Affiliate investments |
— |
72,891 |
— |
601,571 |
|||||||||||
Control investments |
— |
— |
— |
107,819 |
|||||||||||
Total fee and other income |
848,792 |
377,726 |
1,669,819 |
4,935,295 |
|||||||||||
Payment-in-kind interest income: |
|||||||||||||||
Non-Control / Non-Affiliate investments |
— |
366,344 |
— |
2,814,474 |
|||||||||||
Affiliate investments |
— |
136,603 |
— |
962,080 |
|||||||||||
Total payment-in-kind interest income |
— |
502,947 |
— |
3,776,554 |
|||||||||||
Interest income from cash |
2,152 |
822,995 |
9,022 |
1,972,591 |
|||||||||||
Total investment income |
19,304,107 |
12,072,396 |
57,245,553 |
63,621,974 |
|||||||||||
Operating expenses: |
|||||||||||||||
Interest and other financing fees |
6,727,780 |
4,369,994 |
19,598,992 |
19,304,877 |
|||||||||||
Base management fee (Note 2) |
3,263,803 |
1,546,675 |
8,845,753 |
1,546,675 |
|||||||||||
Compensation expenses |
107,779 |
29,435,834 |
334,869 |
37,371,342 |
|||||||||||
General and administrative expenses (Note 2) |
1,217,570 |
8,766,516 |
5,108,595 |
14,659,656 |
|||||||||||
Total operating expenses |
11,316,932 |
44,119,019 |
33,888,209 |
72,882,550 |
|||||||||||
Base management fee waived (Note 2) |
— |
(993,317 |
) |
— |
(993,317 |
) |
|||||||||
Net operating expenses |
11,316,932 |
43,125,702 |
33,888,209 |
71,889,233 |
|||||||||||
Net investment income (loss) |
7,987,175 |
(31,053,306 |
) |
23,357,344 |
(8,267,259 |
) |
|||||||||
Realized and unrealized gains (losses) on investments and foreign currency transactions: |
|||||||||||||||
Net realized gains (losses): |
|||||||||||||||
Non-Control / Non-Affiliate investments |
(1,066,536 |
) |
(92,881,851 |
) |
(1,146,287 |
) |
(134,191,161 |
) |
|||||||
Affiliate investments |
— |
7,586,818 |
— |
9,939,330 |
|||||||||||
Control investments |
— |
(31,916,157 |
) |
— |
(38,542,704 |
) |
|||||||||
Net realized losses on investments |
(1,066,536 |
) |
(117,211,190 |
) |
(1,146,287 |
) |
(162,794,535 |
) |
|||||||
Foreign currency transactions |
83,037 |
— |
83,037 |
1,081,211 |
|||||||||||
Net realized losses |
(983,499 |
) |
(117,211,190 |
) |
(1,063,250 |
) |
(161,713,324 |
) |
|||||||
Net unrealized appreciation (depreciation): |
|||||||||||||||
Non-Control / Non-Affiliate investments |
(2,209,225 |
) |
50,825,657 |
25,202,059 |
82,978,562 |
||||||||||
Affiliate investments |
40,119 |
(15,887,729 |
) |
(121,970 |
) |
3,197,568 |
|||||||||
Control investments |
— |
22,717,499 |
— |
24,387,532 |
|||||||||||
Net unrealized appreciation (depreciation) on investments |
(2,169,106 |
) |
57,655,427 |
25,080,089 |
110,563,662 |
||||||||||
Foreign currency transactions |
374,278 |
— |
374,278 |
(863,980 |
) |
||||||||||
Net unrealized appreciation (depreciation) |
(1,794,828 |
) |
57,655,427 |
25,454,367 |
109,699,682 |
||||||||||
Net realized losses and unrealized appreciation (depreciation) on investments and foreign currency transactions |
(2,778,327 |
) |
(59,555,763 |
) |
24,391,117 |
(52,013,642 |
) |
||||||||
Loss on extinguishment of debt |
(13,357 |
) |
(10,507,183 |
) |
(143,108 |
) |
(10,507,183 |
) |
|||||||
Provision for taxes |
— |
(274,132 |
) |
(499 |
) |
(813,767 |
) |
||||||||
Net increase (decrease) in net assets resulting from operations |
$ |
5,195,491 |
$ |
(101,390,384 |
) |
$ |
47,604,854 |
$ |
(71,601,851 |
) |
|||||
Net investment income (loss) per share—basic and diluted |
$ |
0.16 |
$ |
(0.59 |
) |
$ |
0.46 |
$ |
(0.17 |
) |
|||||
Net increase (decrease) in net assets resulting from operations per share—basic and diluted |
$ |
0.10 |
$ |
(1.94 |
) |
$ |
0.94 |
$ |
(1.45 |
) |
|||||
Dividends/distributions per share: |
|||||||||||||||
Total dividends/distributions per share |
$ |
0.14 |
$ |
0.03 |
$ |
0.39 |
$ |
0.33 |
|||||||
Weighted average shares outstanding—basic and diluted |
49,987,312 |
52,300,269 |
50,535,246 |
49,429,678 |
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
|
|||||||||||||||
Three Months Ended September 30, 2018: |
Number
of Shares
|
Par
Value
|
||||||||||||||||
Balance, June 30, 2018 |
48,050,720 |
$ |
48,051 |
$ |
825,264,541 |
$ |
(167,006,099 |
) |
$ |
658,306,493 |
||||||||
Net investment loss |
— |
— |
— |
(31,053,306 |
) |
(31,053,306 |
) |
|||||||||||
Stock-based compensation |
— |
— |
11,296,179 |
— |
11,296,179 |
|||||||||||||
Net realized loss on investments / foreign currency transactions |
— |
— |
— |
(117,211,190 |
) |
(117,211,190 |
) |
|||||||||||
Net unrealized appreciation of investments / foreign currency transactions |
— |
— |
— |
57,655,427 |
57,655,427 |
|||||||||||||
Loss on extinguishment of debt |
— |
— |
— |
(10,507,183 |
) |
(10,507,183 |
) |
|||||||||||
Provision for taxes |
— |
— |
— |
(274,132 |
) |
(274,132 |
) |
|||||||||||
Dividends / distributions |
— |
— |
— |
(1,538,522 |
) |
(1,538,522 |
) |
|||||||||||
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 |
) |
|||||||||
Common stock withheld for payroll taxes upon vesting of restricted stock |
(394,612 |
) |
(395 |
) |
(4,734,949 |
) |
— |
(4,735,344 |
) |
|||||||||
Balance, September 30, 2018 |
51,284,064 |
$ |
51,284 |
$ |
880,865,664 |
$ |
(269,935,005 |
) |
$ |
610,981,943 |
Common Stock |
Additional
Paid-In
Capital
|
Total Distributable Earnings (Loss) |
Total
Net
Assets
|
|||||||||||||||
Three Months Ended September 30, 2019: |
Number
of Shares
|
Par
Value
|
||||||||||||||||
Balance, June 30, 2019 |
50,314,275 |
$ |
50,314 |
$ |
875,245,919 |
$ |
(292,216,528 |
) |
$ |
583,079,705 |
||||||||
Net investment income |
— |
— |
— |
7,987,175 |
7,987,175 |
|||||||||||||
Net realized loss on investments / foreign currency transactions |
— |
— |
— |
(983,499 |
) |
(983,499 |
) |
|||||||||||
Net unrealized depreciation of investments / foreign currency transactions |
— |
— |
— |
(1,794,828 |
) |
(1,794,828 |
) |
|||||||||||
Loss on extinguishment of debt |
— |
— |
— |
(13,357 |
) |
(13,357 |
) |
|||||||||||
Dividends / distributions |
— |
— |
— |
(6,935,311 |
) |
(6,935,311 |
) |
|||||||||||
Purchases of shares in repurchase plan |
(895,733 |
) |
(895 |
) |
(8,894,010 |
) |
— |
(8,894,905 |
) |
|||||||||
Balance, September 30, 2019 |
49,418,542 |
$ |
49,419 |
$ |
866,351,909 |
$ |
(293,956,348 |
) |
$ |
572,444,980 |
5
Barings BDC, Inc.
Unaudited Consolidated Statements of Changes in Net Assets — (Continued)
Common Stock |
Additional
Paid-In
Capital
|
Total Distributable Earnings (Loss) |
Total
Net
Assets
|
|||||||||||||||
Nine Months Ended September 30, 2018: |
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 transactions |
— |
— |
— |
(161,713,324 |
) |
(161,713,324 |
) |
|||||||||||
Net unrealized appreciation of investments / foreign currency transactions |
— |
— |
— |
109,699,682 |
109,699,682 |
|||||||||||||
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 |
Common Stock |
Additional
Paid-In
Capital
|
Total Distributable Earnings (Loss) |
Total
Net
Assets
|
|||||||||||||||
Nine Months Ended September 30, 2019: |
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 |
— |
— |
— |
23,357,344 |
23,357,344 |
|||||||||||||
Net realized loss on investments / foreign currency transactions |
— |
— |
— |
(1,063,250 |
) |
(1,063,250 |
) |
|||||||||||
Net unrealized appreciation of investments / foreign currency transactions |
— |
— |
— |
25,454,367 |
25,454,367 |
|||||||||||||
Loss on extinguishment of debt |
— |
— |
— |
(143,108 |
) |
(143,108 |
) |
|||||||||||
Provision for taxes |
— |
— |
— |
(499 |
) |
(499 |
) |
|||||||||||
Dividends / distributions |
— |
— |
— |
(19,582,956 |
) |
(19,582,956 |
) |
|||||||||||
Purchases of shares in repurchase plan |
(1,865,522 |
) |
(1,865 |
) |
(18,542,340 |
) |
— |
(18,544,205 |
) |
|||||||||
Balance, September 30, 2019 |
49,418,542 |
$ |
49,419 |
$ |
866,351,909 |
$ |
(293,956,348 |
) |
$ |
572,444,980 |
See accompanying notes.
6
Barings BDC, Inc.
Unaudited Consolidated Statements of Cash Flows
Nine Months Ended |
Nine Months Ended |
||||||
September 30, 2019 |
September 30, 2018 |
||||||
Cash flows from operating activities: |
|||||||
Net increase (decrease) in net assets resulting from operations |
$ |
47,604,854 |
$ |
(71,601,851 |
) |
||
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 |
(294,160,380 |
) |
(789,746,110 |
) |
|||
Repayments received/sales of portfolio investments |
251,057,329 |
314,112,490 |
|||||
Proceeds from sale of portfolio to Asset Buyer |
— |
793,281,722 |
|||||
Purchases of short-term investments |
(577,451,108 |
) |
(730,233,448 |
) |
|||
Sales of short-term investments |
571,122,802 |
685,233,448 |
|||||
Loan origination and other fees received |
5,118,390 |
1,212,914 |
|||||
Net realized loss on investments |
1,146,287 |
162,794,535 |
|||||
Net realized gain on foreign currency transactions |
(83,037 |
) |
(1,081,211 |
) |
|||
Net unrealized appreciation of investments |
(25,080,089 |
) |
(109,232,129 |
) |
|||
Net unrealized (appreciation) depreciation of foreign currency transactions |
(374,278 |
) |
863,980 |
||||
Payment-in-kind interest accrued, net of payments received |
— |
120,933 |
|||||
Amortization of deferred financing fees |
951,134 |
1,710,047 |
|||||
Loss on extinguishment of debt |
143,108 |
10,507,183 |
|||||
Loss on disposal of property and equipment |
— |
22,236 |
|||||
Accretion of loan origination and other fees |
(1,254,234 |
) |
(3,205,327 |
) |
|||
Amortization/accretion of purchased loan premium/discount |
(187,967 |
) |
(37,486 |
) |
|||
Depreciation expense |
— |
27,414 |
|||||
Stock-based compensation |
— |
14,229,633 |
|||||
Changes in operating assets and liabilities: |
|||||||
Interest and fees receivables |
595,826 |
(4,098,768 |
) |
||||
Prepaid expenses and other assets |
2,421,921 |
(2,085,170 |
) |
||||
Accounts payable and accrued liabilities |
65,869 |
(8,579,273 |
) |
||||
Interest payable |
2,141,975 |
(3,845,616 |
) |
||||
Net cash provided by (used in) operating activities |
(16,221,598 |
) |
260,370,146 |
||||
Cash flows from investing activities: |
|||||||
Proceeds from sales of property and equipment |
— |
31,499 |
|||||
Net cash provided by investing activities |
— |
31,499 |
|||||
Cash flows from financing activities: |
|||||||
Repayments of SBA-guaranteed debentures payable |
— |
(250,000,000 |
) |
||||
Borrowings under credit facilities |
188,225,262 |
214,100,000 |
|||||
Repayments of credit facilities |
(466,000,000 |
) |
(159,953,253 |
) |
|||
Proceeds from debt securitization |
348,250,000 |
— |
|||||
Repayment of debt securitization |
(7,468,690 |
) |
— |
||||
Redemption of notes |
— |
(166,750,000 |
) |
||||
Financing fees paid |
(8,246,692 |
) |
(47,900 |
) |
|||
Net proceeds related to issuance of common stock |
— |
99,839,845 |
|||||
Purchases of shares in repurchase plan |
(18,544,205 |
) |
(50,796,324 |
) |
|||
Common stock withheld for payroll taxes upon vesting of restricted stock |
— |
(6,018,828 |
) |
||||
Cash dividends/distributions paid |
(19,582,956 |
) |
(15,945,906 |
) |
|||
Net cash provided by (used in) financing activities |
16,632,719 |
(335,572,366 |
) |
||||
Net increase (decrease) in cash |
411,121 |
(75,170,721 |
) |
||||
Cash, beginning of period |
12,426,982 |
191,849,697 |
|||||
Cash, end of period |
$ |
12,838,103 |
$ |
116,678,976 |
|||
Supplemental disclosure of cash flow information: |
|||||||
Cash paid for interest |
$ |
14,398,249 |
$ |
19,845,947 |
See accompanying notes.
7
Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments
September 30, 2019
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1) (2)
|
Principal
Amount
|
Cost |
Fair
Value
|
|||||||||||
Non–Control / Non–Affiliate Investments: |
||||||||||||||||
1WorldSync, Inc. (3.9%)*(5) (7)
|
IT Consulting & Other Services |
First Lien Senior Secured Term Loan (LIBOR + 7.25%, 9.6% Cash, Due 07/25) |
$ |
22,500,000 |
$ |
22,063,100 |
$ |
22,030,347 |
||||||||
22,500,000 |
22,063,100 |
22,030,347 |
||||||||||||||
24 Hour Fitness Worldwide, Inc. (1.6%)*(4) (6)
|
Leisure Facilities |
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.6% Cash, Due 05/25) |
9,405,000 |
9,486,856 |
9,071,122 |
|||||||||||
9,405,000 |
9,486,856 |
9,071,122 |
||||||||||||||
Accelerate Learning, Inc. (1.3%)*(5) (7)
|
Education Services |
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.6% Cash, Due 12/24) |
7,546,826 |
7,412,226 |
7,370,118 |
|||||||||||
7,546,826 |
7,412,226 |
7,370,118 |
||||||||||||||
Accurus Aerospace Corporation (4.2%)*(5) (7)
|
Aerospace & Defense |
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.7% Cash, Due 10/24) |
24,812,500 |
24,490,333 |
24,285,541 |
|||||||||||
24,812,500 |
24,490,333 |
24,285,541 |
||||||||||||||
Acrisure, LLC (1.7%)*(4) (5) (6)
|
Property & Casualty Insurance |
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.4% Cash, Due 11/23) |
9,874,055 |
9,927,253 |
9,812,342 |
|||||||||||
9,874,055 |
9,927,253 |
9,812,342 |
||||||||||||||
ADMI Corp. (0.6%)*(6)
|
Health Care Services |
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.8% Cash, Due 04/25) |
3,456,250 |
3,467,497 |
3,419,095 |
|||||||||||
3,456,250 |
3,467,497 |
3,419,095 |
||||||||||||||
Aftermath Bidco Corporation (2.1%)*(5) (7)
|
Professional Services |
First Lien Senior Secured Term Loan (LIBOR + 5.75%, 7.1% Cash, Due 04/25) |
12,289,831 |
12,030,899 |
12,033,860 |
|||||||||||
12,289,831 |
12,030,899 |
12,033,860 |
||||||||||||||
AlixPartners LLP (1.4%)*(4) (6)
|
Investment Banking & Brokerage |
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.8% Cash, Due 04/24) |
7,997,468 |
8,036,266 |
7,998,588 |
|||||||||||
7,997,468 |
8,036,266 |
7,998,588 |
||||||||||||||
Alliant Holdings LP (0.8%)*(6)
|
Property & Casualty Insurance |
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.1% Cash, Due 05/25) |
4,935,025 |
4,942,133 |
4,847,774 |
|||||||||||
4,935,025 |
4,942,133 |
4,847,774 |
||||||||||||||
American Airlines Group Inc. (1.3%)*(3) (6)
|
Airport Services |
First Lien Senior Secured Term Loan (LIBOR + 1.75%, 3.9% Cash, Due 06/25) |
7,905,664 |
7,788,072 |
7,816,725 |
|||||||||||
7,905,664 |
7,788,072 |
7,816,725 |
||||||||||||||
American Dental Partners, Inc. (1.7%)*(5)
|
Health Care Services |
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.4% Cash, Due 03/23) |
9,925,000 |
9,904,562 |
9,788,531 |
|||||||||||
9,925,000 |
9,904,562 |
9,788,531 |
||||||||||||||
American Scaffold, Inc. (1.9%)*(5) (7)
|
Aerospace & Defense |
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.7% Cash, Due 09/25) |
11,309,367 |
11,057,218 |
11,056,761 |
|||||||||||
11,309,367 |
11,057,218 |
11,056,761 |
||||||||||||||
Amscan Holdings Inc. (0.4%)*(3) (6)
|
Specialty Stores |
First Lien Senior Secured Term Loan (LIBOR + 2.5%, 4.6% Cash, Due 08/22) |
2,193,920 |
2,206,558 |
2,172,902 |
|||||||||||
2,193,920 |
2,206,558 |
2,172,902 |
||||||||||||||
Anju Software, Inc. (2.4%)*(5) (7)
|
Application Software |
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 7.6% Cash, Due 02/25) |
13,839,878 |
13,512,065 |
13,487,866 |
|||||||||||
13,839,878 |
13,512,065 |
13,487,866 |
||||||||||||||
Apex Tool Group, LLC (1.2%)*(4) (6)
|
Industrial Machinery |
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 7.5% Cash, Due 08/24) |
7,190,660 |
7,052,510 |
6,980,908 |
|||||||||||
7,190,660 |
7,052,510 |
6,980,908 |
||||||||||||||
Applied Systems Inc. (1.6%)*(4) (6)
|
Application Software |
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.1% Cash, Due 09/24) |
9,242,336 |
9,301,621 |
9,224,868 |
|||||||||||
9,242,336 |
9,301,621 |
9,224,868 |
||||||||||||||
AQA Acquisition Holding, Inc. (f/k/a SmartBear) (0.8%)*(5) (7)
|
High Tech Industries |
Second Lien Senior Secured Term Loan (LIBOR + 8.0%, 10.3% Cash, Due 05/24) |
4,959,088 |
4,853,413 |
4,854,198 |
|||||||||||
4,959,088 |
4,853,413 |
4,854,198 |
||||||||||||||
Arch Global Precision LLC (1.1%)*(5) (7)
|
Industrial Machinery |
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.8% Cash, Due 04/26) |
6,195,104 |
6,064,729 |
6,112,090 |
|||||||||||
6,195,104 |
6,064,729 |
6,112,090 |
8
Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
September 30, 2019
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1) (2)
|
Principal
Amount
|
Cost |
Fair
Value
|
|||||||||||
Armstrong Transport Group (Pele Buyer, LLC ) (0.8%)*(5) (7)
|
Air Freight & Logistics |
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.8% Cash, Due 06/24) |
$ |
4,691,185 |
$ |
4,588,508 |
$ |
4,581,272 |
||||||||
4,691,185 |
4,588,508 |
4,581,272 |
||||||||||||||
Ascend Learning, LLC (1.4%)*(4) (6)
|
IT Consulting & Other Services |
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.0% Cash, Due 07/24) |
7,899,244 |
7,918,350 |
7,862,197 |
|||||||||||
7,899,244 |
7,918,350 |
7,862,197 |
||||||||||||||
Ascend Performance Materials LLC (0.2%)*(4)
|
Commodity Chemicals |
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.4% Cash, Due 08/26) |
1,000,000 |
980,169 |
1,000,630 |
|||||||||||
1,000,000 |
980,169 |
1,000,630 |
||||||||||||||
AssuredPartners Capital, Inc. (2.1%)*(4) (6)
|
Property & Casualty Insurance |
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.5% Cash, Due 10/24) |
11,848,856 |
11,869,646 |
11,784,043 |
|||||||||||
11,848,856 |
11,869,646 |
11,784,043 |
||||||||||||||
Avantor, Inc. (1.0%)*(4) (6)
|
Health Care Equipment |
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.0% Cash, Due 11/24) |
5,732,444 |
5,802,904 |
5,773,660 |
|||||||||||
5,732,444 |
5,802,904 |
5,773,660 |
||||||||||||||
Aveanna Healthcare Holdings, Inc. (0.9%)*(6)
|
Health Care Facilities |
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.3% Cash, Due 03/24) |
1,477,348 |
1,460,581 |
1,450,578 |
|||||||||||
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 7.5% Cash, Due 03/24) |
3,538,639 |
3,539,524 |
3,470,096 |
|||||||||||||
5,015,987 |
5,000,105 |
4,920,674 |
||||||||||||||
AVSC Holding Corp. (1.3%)*(4) (5) (6)
|
Advertising |
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.3% Cash, Due 03/25) |
7,899,749 |
7,861,886 |
7,629,815 |
|||||||||||
7,899,749 |
7,861,886 |
7,629,815 |
||||||||||||||
Bausch Health Companies Inc. (0.8%)*(3) (6)
|
Health Care Services |
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.0% Cash, Due 05/25) |
4,655,724 |
4,675,799 |
4,672,717 |
|||||||||||
4,655,724 |
4,675,799 |
4,672,717 |
||||||||||||||
BDP Buyer, LLC (4.3%)*(5) (7)
|
Air Freight & Logistics |
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.9% Cash, Due 12/24) |
24,812,500 |
24,369,577 |
24,483,800 |
|||||||||||
24,812,500 |
24,369,577 |
24,483,800 |
||||||||||||||
Benify (Bennevis AB) (1.2%)*(3) (5) (7)
|
High Tech Industries |
First Lien Senior Secured Term Loan (STIBOR + 5.75%, 5.8% Cash, Due 07/26) |
6,801,903 |
6,987,095 |
6,702,195 |
|||||||||||
6,801,903 |
6,987,095 |
6,702,195 |
||||||||||||||
Berlin Packaging LLC (1.4%)*(4) (5) (6)
|
Forest Products /Containers |
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.1% Cash, Due 11/25) |
8,393,750 |
8,411,534 |
8,233,261 |
|||||||||||
8,393,750 |
8,411,534 |
8,233,261 |
||||||||||||||
Blackhawk Network Holdings Inc (0.9%)*(6)
|
Data Processing & Outsourced Services |
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.0% Cash, Due 06/25) |
4,974,811 |
4,974,811 |
4,954,066 |
|||||||||||
4,974,811 |
4,974,811 |
4,954,066 |
||||||||||||||
Brown Machine Group Holdings, LLC (0.9%)*(5) (7)
|
Industrial Equipment |
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.4% Cash, Due 10/24) |
5,471,594 |
5,413,027 |
5,276,382 |
|||||||||||
5,471,594 |
5,413,027 |
5,276,382 |
||||||||||||||
Cadent, LLC (f/k/a Cross MediaWorks) (1.4%)*(5) (7)
|
Media & Entertainment |
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.3% Cash, Due 09/23) |
7,906,387 |
7,842,220 |
7,866,855 |
|||||||||||
7,906,387 |
7,842,220 |
7,866,855 |
||||||||||||||
Caesars Entertainment Corp. (0.5%)*(3) (6)
|
Casinos & Gaming |
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.8% Cash, Due 12/24) |
3,110,427 |
3,127,078 |
3,088,654 |
|||||||||||
3,110,427 |
3,127,078 |
3,088,654 |
||||||||||||||
Calpine Corp. (0.8%)*(6)
|
Independent Power Producers & Energy Traders |
First Lien Senior Secured Term Loan5 (LIBOR + 2.5%, 4.6% Cash, Due 01/24) |
4,462,555 |
4,476,557 |
4,471,123 |
|||||||||||
4,462,555 |
4,476,557 |
4,471,123 |
||||||||||||||
Campaign Monitor (UK) Limited (3.5%)*(5) (7)
|
Internet & Direct Marketing |
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.8% Cash, Due 05/25) |
20,589,287 |
20,225,140 |
20,187,653 |
|||||||||||
20,589,287 |
20,225,140 |
20,187,653 |
||||||||||||||
Capital Automotive LLC (0.9%)*(6)
|
Automotive Retail |
First Lien Senior Secured Term Loan (LIBOR + 2.5%, 4.6% Cash, Due 03/24) |
4,987,277 |
5,000,608 |
4,985,731 |
|||||||||||
4,987,277 |
5,000,608 |
4,985,731 |
||||||||||||||
9
Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
September 30, 2019
| ||||||||||||||||
Portfolio Company |
Industry |
Type of Investment(1) (2)
|
Principal
Amount
|
Cost |
Fair
Value
|
|||||||||||
Concentra Inc. (0.5%)*(6) (7)
|
Health Care Services |
First Lien Senior Secured Term Loan (LIBOR + 2.5%, 4.5% Cash, Due 06/22) |
$ |
2,912,371 |
$ |
2,934,397 |
$ |
2,926,933 |
||||||||
2,912,371 |
2,934,397 |
2,926,933 |
||||||||||||||
Consolidated Container Co. LLC (1.3%)*(4) (6)
|
Packaging |
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.8% Cash, Due 05/24) |
7,405,779 |
7,425,961 |
7,359,493 |
|||||||||||
7,405,779 |
7,425,961 |
7,359,493 |
||||||||||||||
Container Store Group, Inc., (The) (0.5%)*(6) (7)
|
Retail |
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.0% Cash, Due 09/23) |
2,948,972 |
2,951,070 |
2,926,855 |
|||||||||||
2,948,972 |
2,951,070 |
2,926,855 |
||||||||||||||
Core & Main LP (1.7%)*(4) (6)
|
Building Products |
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.9% Cash, Due 08/24) |
9,899,244 |
9,940,996 |
9,806,488 |
|||||||||||
9,899,244 |
9,940,996 |
9,806,488 |
||||||||||||||
CPG Intermediate LLC (0.4%)*(6) (7)
|
Specialty Chemicals |
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.5% Cash, Due 11/24) |
2,116,080 |
2,118,293 |
2,121,370 |
|||||||||||
2,116,080 |
2,118,293 |
2,121,370 |
||||||||||||||
CPI International Inc. (0.8%)*(6)
|
Electronic Components |
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.6% Cash, Due 07/24) |
4,759,210 |
4,766,302 |
4,658,077 |
|||||||||||
4,759,210 |
4,766,302 |
4,658,077 |
||||||||||||||
Dart Buyer, Inc. (1.3%)*(3) (5) (7)
|
Aerospace & Defense |
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.3% Cash, Due 04/25) |
7,437,094 |
7,161,166 |
7,164,661 |
|||||||||||
7,437,094 |
7,161,166 |
7,164,661 |
||||||||||||||
Dimora Brands, Inc. (0.5%)*(6)
|
Building Products |
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.5% Cash, Due 08/24) |
2,941,442 |
2,944,512 |
2,860,552 |
|||||||||||
2,941,442 |
2,944,512 |
2,860,552 |
||||||||||||||
Distinct Holdings, Inc. (1.3%)*(5) (7)
|
Systems Software |
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.9% Cash, Due 12/23) |
7,611,845 |
7,524,314 |
7,529,799 |
|||||||||||
7,611,845 |
7,524,314 |
7,529,799 |
||||||||||||||
Duff & Phelps Corporation (2.3%)*(4) (6)
|
Research & Consulting Services |
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.3% Cash, Due 02/25) |
13,240,472 |
13,273,219 |
13,002,144 |
|||||||||||
13,240,472 |
13,273,219 |
13,002,144 |
||||||||||||||
Edelman Financial Center, LLC, The (f/k/a Edelman Financial Group, Inc.) (1.9%)*(4) (6)
|
Investment Banking & Brokerage |
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.3% Cash, Due 07/25) |
10,407,355 |
10,481,799 |
10,414,744 |
|||||||||||
10,407,355 |
10,481,799 |
10,414,744 |
||||||||||||||
Endo International PLC (1.3%)*(3) (4) (6)
|
Pharmaceuticals |
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.3% Cash, Due 04/24) |
7,898,990 |
7,962,900 |
7,175,758 |
|||||||||||
7,898,990 |
7,962,900 |
7,175,758 |
||||||||||||||
Exeter Property Group, LLC (2.2%)*(5) (7)
|
Real Estate |
First Lien Senior Secured Term Loan (LIBOR + 4.5%,6.6% Cash, Due 08/24) |
12,468,750 |
12,299,484 |
12,368,264 |
|||||||||||
12,468,750 |
12,299,484 |
12,368,264 |
||||||||||||||
ExGen Renewables IV, LLC (f/k/a Exelon Corp.) (0.5%)*(3) (6)
|
Electric Utilities |
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.1% Cash, Due 11/24) |
2,865,257 |
2,889,634 |
2,799,012 |
|||||||||||
2,865,257 |
2,889,634 |
2,799,012 |
||||||||||||||
Eyemart Express (0.6%)*(6)
|
Retail |
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.1% Cash, Due 08/24) |
3,452,217 |
3,462,563 |
3,442,136 |
|||||||||||
3,452,217 |
3,462,563 |
3,442,136 |
||||||||||||||
Fieldwood Energy LLC (1.5%)*(4) (5) (6)
|
Oil & Gas Equipment & Services |
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.5% Cash, Due 04/22) |
10,000,000 |
10,071,887 |
8,644,400 |
|||||||||||
10,000,000 |
10,071,887 |
8,644,400 |
||||||||||||||
Filtration Group Corporation (1.8%)*(4) (6)
|
Industrial Machinery |
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.0% Cash, Due 03/25) |
10,451,904 |
10,526,686 |
10,472,389 |
|||||||||||
10,451,904 |
10,526,686 |
10,472,389 |
||||||||||||||
Flex Acquisition Holdings, Inc. (1.6%)*(4) (5) (6)
|
Paper Packaging |
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.6% Cash, Due 06/25) |
9,782,731 |
9,800,849 |
9,406,682 |
|||||||||||
9,782,731 |
9,800,849 |
9,406,682 |
||||||||||||||
10
Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
September 30, 2019
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Portfolio Company |
Industry |
Type of Investment(1) (2)
|
Principal
Amount
|
Cost |
Fair
Value
|
|||||||||||
GMS Inc. (0.9%)*(3) (5) (6)
|
Construction & Engineering |
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.8% Cash, Due 06/25) |
$ |
5,181,350 |
$ |
5,161,130 |
$ |
5,152,853 |
||||||||
5,181,350 |
5,161,130 |
5,152,853 |
||||||||||||||
Graftech International Ltd. (1.7%)*(3) (4) (6)
|
Specialty Chemicals |
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.5% Cash, Due 02/25) |
10,113,889 |
10,190,121 |
9,818,867 |
|||||||||||
10,113,889 |
10,190,121 |
9,818,867 |
||||||||||||||
Gulf Finance, LLC (0.1%)*(4)
|
Oil & Gas Exploration & Production |
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.4% Cash, Due 08/23) |
1,061,647 |
915,652 |
802,212 |
|||||||||||
1,061,647 |
915,652 |
802,212 |
||||||||||||||
Harbor Freight Tools USA Inc.(1.0%)*(6)
|
Specialty Stores |
First Lien Senior Secured Term Loan (LIBOR + 2.5%, 4.5% Cash, Due 08/23) |
5,994,942 |
5,943,182 |
5,811,856 |
|||||||||||
5,994,942 |
5,943,182 |
5,811,856 |
||||||||||||||
Hayward Industries, Inc. (1.4%)*(4) (6)
|
Leisure Products |
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.5% Cash, Due 08/24) |
8,392,947 |
8,420,390 |
8,092,899 |
|||||||||||
8,392,947 |
8,420,390 |
8,092,899 |
||||||||||||||
Heartland, LLC (0.5%)*(5) (7)
|
Commercial Services & Supplies |
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.9% Cash, Due 08/25) |
2,875,604 |
2,777,881 |
2,777,450 |
|||||||||||
2,875,604 |
2,777,881 |
2,777,450 |
||||||||||||||
Hertz Corporation (The) (1.0%)*(3) (6)
|
Rental & Leasing Services |
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.8% Cash, Due 06/23) |
5,845,758 |
5,836,921 |
5,845,758 |
|||||||||||
5,845,758 |
5,836,921 |
5,845,758 |
||||||||||||||