Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

October 30, 2019

Documents

Table of Contents


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
__________________________________________________________
Form 10-Q
__________________________________________________________
(Mark One)
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 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
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