Company Quick10K Filing
Quick10K
Barings Bdc
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-07-30 Earnings, Regulation FD, Exhibits
8-K 2019-05-09 Enter Agreement, Earnings, Off-BS Arrangement, Shareholder Vote, Regulation FD, Exhibits
8-K 2019-02-21 Enter Agreement, Earnings, Off-BS Arrangement, Regulation FD, Exhibits
8-K 2018-11-08 Earnings, Regulation FD, Exhibits
8-K 2018-10-11 Other Events, Exhibits
8-K 2018-09-24 Regulation FD, Other Events, Exhibits
8-K 2018-09-11 Other Events, Exhibits
8-K 2018-09-07 Other Events, Exhibits
8-K 2018-08-29 Other Events, Exhibits
8-K 2018-08-03 Regulation FD, Exhibits
8-K 2018-08-03 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2018-08-02 Enter Agreement, Leave Agreement, Sale of Shares, Control, Officers, Amend Bylaw, Regulation FD, Other Events, Exhibits
8-K 2018-08-02 Enter Agreement, Exhibits
8-K 2018-07-31 Leave Agreement, M&A, Other Events, Exhibits
8-K 2018-07-24 Shareholder Vote
8-K 2018-04-04 Other Events, Exhibits
8-K 2018-04-03 Enter Agreement, Sale of Shares, Exhibits
8-K 2018-01-16 Enter Agreement, Amend Bylaw, Other Events, Exhibits
USAU US Gold 17
GEF Greif 0
SUNS Solar Senior Capital 0
PIO Pioneer 0
PBY Pep Boys Manny Moe & Jack 0
KCAP Kcap Financial 0
FDUS Fidus Investment 0
VETS Pet DRx 0
MRCC Monroe Capital 0
AFC Allied Capital 0
BBDC 2019-06-30
Part I - Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II - Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures.
Item 5. Other Information.
Item 6. Exhibits.
EX-10.1 exhbiti101-cloindenture.htm
EX-10.2 exhibit102-masterloansalea.htm
EX-10.3 exhibit103-masterparticipa.htm
EX-10.4 exhibit104-collateralmanag.htm
EX-10.5 exhibit105-collateraladmin.htm
EX-31.1 bbdc-6302019xq2ex311.htm
EX-31.2 bbdc-6302019xq2ex312.htm
EX-32.1 bbdc-6302019xq2ex321.htm
EX-32.2 bbdc-6302019xq2ex322.htm

Barings Bdc Earnings 2019-06-30

BBDC 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 a2019063010qbbdc.htm 10-Q Document

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, 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 July 30, 2019 was 50,314,275.




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
 
June 30, 2019
 
December 31, 2018
 
(Unaudited)
 
 
Assets:
 
 
 
Investments at fair value:
 
 
 
Non-Control / Non-Affiliate investments (cost of $1,185,840,891 and $1,128,694,715 as of June 30, 2019 and December 31, 2018, respectively)
$
1,161,189,262

 
$
1,076,631,804

Affiliate investments (cost of $5,162,299 as of June 30, 2019)
5,000,210

 

Short-term investments (cost of $34,423,491 and $45,223,941 as of June 30, 2019 and December 31, 2018, respectively)
34,423,491

 
45,223,941

Total investments at fair value
1,200,612,963

 
1,121,855,745

Cash
12,926,602

 
12,426,982

Interest and fees receivable
5,208,059

 
6,008,700

Prepaid expenses and other assets
1,318,240

 
4,123,742

Deferred financing fees
6,001,589

 
251,908

Receivable from unsettled transactions
115,302

 
22,909,998

Total assets
$
1,226,182,755

 
$
1,167,577,075

Liabilities:
 
 
 
Accounts payable and accrued liabilities
$
5,852,451

 
$
5,327,249

Interest payable
2,339,146

 
749,525

Payable from unsettled transactions
2,970,000

 
28,533,014

Borrowings under credit facilities
285,500,000

 
570,000,000

Debt securitization
346,441,453

 

Total liabilities
643,103,050

 
604,609,788

Commitments and contingencies (Note 9)
 
 
 
Net Assets:
 
 
 
Common stock, $0.001 par value per share (150,000,000 shares authorized, 50,314,275 and 51,284,064 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively)
50,314

 
51,284

Additional paid-in capital
875,245,919

 
884,894,249

Total distributable earnings (loss)
(292,216,528
)
 
(321,978,246
)
Total net assets
583,079,705

 
562,967,287

Total liabilities and net assets
$
1,226,182,755

 
$
1,167,577,075

Net asset value per share
$
11.59

 
$
10.98


See accompanying notes.


3



Barings BDC, Inc.
Unaudited Consolidated Statements of Operations
 
Three Months
Ended
 
Three Months
Ended
 
Six Months Ended
 
Six Months Ended
 
June 30,
2019
 
June 30,
2018
 
June 30,
2019
 
June 30,
2018
Investment income:
 
 
 
 
 
 
 
Interest income:
 
 
 
 
 
 
 
Non-Control / Non-Affiliate investments
$
18,823,480

 
$
17,507,637

 
$
36,684,799

 
$
36,513,687

Affiliate investments

 
2,250,311

 

 
4,910,498

Control investments

 
278,091

 

 
553,127

Short-term investments
251,344

 

 
424,039

 

Total interest income
19,074,824

 
20,036,039

 
37,108,838

 
41,977,312

Dividend income:
 
 
 
 
 
 
 
Non-Control / Non-Affiliate investments
4,711

 
66,657

 
4,711

 
252,369

Affiliate investments

 
334,575

 

 
339,125

Total dividend income
4,711

 
401,232

 
4,711

 
591,494

Fee and other income:
 
 
 
 
 
 
 
Non-Control / Non-Affiliate investments
519,970

 
2,627,353

 
821,027

 
3,921,070

Affiliate investments

 
134,407

 

 
528,680

Control investments

 
7,819

 

 
107,819

Total fee and other income
519,970

 
2,769,579

 
821,027

 
4,557,569

Payment-in-kind interest income:
 
 
 
 
 
 
 
Non-Control / Non-Affiliate investments

 
1,141,549

 

 
2,448,130

Affiliate investments

 
403,337

 

 
825,477

Total payment-in-kind interest income

 
1,544,886

 

 
3,273,607

Interest income from cash
2,183

 
721,755

 
6,870

 
1,149,596

Total investment income
19,601,688

 
25,473,491

 
37,941,446

 
51,549,578

Operating expenses:
 
 
 
 
 
 
 
Interest and other financing fees
7,027,040

 
7,344,335

 
12,871,212

 
14,934,883

Base management fee (Note 2)
3,130,955

 

 
5,581,950

 

Compensation expenses
108,646

 
3,842,656

 
227,090

 
7,935,508

General and administrative expenses (Note 2)
1,922,165

 
4,224,631

 
3,891,025

 
5,893,140

Total operating expenses
12,188,806

 
15,411,622

 
22,571,277

 
28,763,531

Net investment income
7,412,882

 
10,061,869

 
15,370,169

 
22,786,047

Realized and unrealized gains (losses) on investments and foreign currency borrowings:
 
 
 
 
 
 
 
Net realized gains (losses):
 
 
 
 
 
 
 
Non-Control / Non-Affiliate investments
50,024

 
(29,369,826
)
 
(79,751
)
 
(41,309,310
)
Affiliate investments

 
(904,686
)
 

 
2,352,512

Control investments

 
(6,630,547
)
 

 
(6,626,547
)
Net realized gains (losses) on investments
50,024

 
(36,905,059
)
 
(79,751
)
 
(45,583,345
)
Foreign currency borrowings

 
(341,915
)
 


 
1,081,211

Net realized gains (losses)
50,024

 
(37,246,974
)
 
(79,751
)
 
(44,502,134
)
Net unrealized appreciation (depreciation):
 
 
 
 
 
 
 
Non-Control / Non-Affiliate investments
2,014,096

 
22,220,521

 
27,411,284

 
32,152,905

Affiliate investments
(162,089
)
 
17,629,966

 
(162,089
)
 
19,085,297

Control investments

 
3,040,908

 

 
1,670,033

Net unrealized appreciation on investments
1,852,007

 
42,891,395

 
27,249,195

 
52,908,235

Foreign currency borrowings

 
99,435

 

 
(863,980
)
Net unrealized appreciation
1,852,007

 
42,990,830

 
27,249,195

 
52,044,255

Net realized and unrealized appreciation on investments and foreign currency borrowings
1,902,031

 
5,743,856

 
27,169,444

 
7,542,121

Loss on extinguishment of debt
(85,356
)
 

 
(129,751
)
 

Benefit from (provision for) taxes
17,493

 
(488,845
)
 
(499
)
 
(539,635
)
Net increase in net assets resulting from operations
$
9,247,050

 
$
15,316,880

 
$
42,409,363

 
$
29,788,533

Net investment income per share—basic and diluted
$
0.15

 
$
0.21

 
$
0.30

 
$
0.48

Net increase in net assets resulting from operations per share—basic and diluted
$
0.18

 
$
0.32

 
$
0.83

 
$
0.62

Dividends/distributions per share:
 
 
 
 
 
 
 
Total dividends/distributions per share
$
0.13

 
$

 
$
0.25

 
$
0.30

Weighted average shares outstanding—basic and diluted
50,473,640

 
48,041,540

 
50,813,753

 
47,970,594

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 June 30, 2018:
Number
of Shares
 
Par
Value
 
 
 
Balance, March 31, 2018
48,024,614

 
$
48,025

 
$
823,786,656

 
$
(182,322,979
)
 
$
641,511,702

Net investment income

 

 

 
10,061,869

 
10,061,869

Stock-based compensation

 

 
1,477,911

 

 
1,477,911

Net realized loss on investments / foreign currency borrowings

 

 

 
(37,246,974
)
 
(37,246,974
)
Net unrealized appreciation of investments / foreign currency borrowings

 

 

 
42,990,830

 
42,990,830

Provision for taxes

 

 

 
(488,845
)
 
(488,845
)
Issuance of restricted stock
26,106

 
26

 
(26
)
 

 

Balance, June 30, 2018
48,050,720

 
$
48,051

 
$
825,264,541

 
$
(167,006,099
)
 
$
658,306,493

 
 
Common Stock
 
Additional
Paid-In
Capital
 
Total Distributable Earnings (Loss)
 
Total
Net
Assets
Three Months Ended June 30, 2019:
Number
of Shares
 
Par
Value
 
 
 
Balance, March 31, 2019
50,690,659

 
$
50,691

 
$
879,033,345

 
$
(294,922,722
)
 
$
584,161,314

Net investment income

 

 

 
7,412,882

 
7,412,882

Net realized gain on investments / foreign currency borrowings

 

 

 
50,024

 
50,024

Net unrealized appreciation of investments / foreign currency borrowings

 

 

 
1,852,007

 
1,852,007

Loss on extinguishment of debt

 

 

 
(85,356
)
 
(85,356
)
Income tax benefit

 

 

 
17,493

 
17,493

Dividends / distributions

 

 

 
(6,540,856
)
 
(6,540,856
)
Purchases of shares in repurchase plan
(376,384
)
 
(377
)
 
(3,787,426
)
 

 
(3,787,803
)
Balance, June 30, 2019
50,314,275

 
$
50,314

 
$
875,245,919

 
$
(292,216,528
)
 
$
583,079,705




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
Six Months Ended June 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 income

 

 

 
22,786,047

 
22,786,047

Stock-based compensation

 

 
2,933,454

 

 
2,933,454

Net realized loss on investments / foreign currency borrowings

 

 

 
(44,502,134
)
 
(44,502,134
)
Net unrealized appreciation of investments / foreign currency borrowings

 

 

 
52,044,255

 
52,044,255

Provision for taxes

 

 

 
(539,635
)
 
(539,635
)
Dividends / distributions

 

 

 
(14,407,384
)
 
(14,407,384
)
Issuance of restricted stock
435,106

 
435

 
(435
)
 

 

Common stock withheld for payroll taxes upon vesting of restricted stock
(125,218
)
 
(125
)
 
(1,283,359
)
 

 
(1,283,484
)
Balance, June 30, 2018
48,050,720

 
$
48,051

 
$
825,264,541

 
$
(167,006,099
)
 
$
658,306,493

 
 
Common Stock
 
Additional
Paid-In
Capital
 
Total Distributable Earnings (Loss)
 
Total
Net
Assets
Six Months Ended June 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

 

 

 
15,370,169

 
15,370,169

Net realized loss on investments / foreign currency borrowings

 

 

 
(79,751
)
 
(79,751
)
Net unrealized appreciation of investments / foreign currency borrowings

 

 

 
27,249,195

 
27,249,195

Loss on extinguishment of debt

 

 

 
(129,751
)
 
(129,751
)
Provision for taxes

 

 

 
(499
)
 
(499
)
Dividends / distributions

 

 

 
(12,647,645
)
 
(12,647,645
)
Purchases of shares in repurchase plan
(969,789
)
 
(970
)
 
(9,648,330
)
 

 
(9,649,300
)
Balance, June 30, 2019
50,314,275

 
$
50,314

 
$
875,245,919

 
$
(292,216,528
)
 
$
583,079,705

See accompanying notes.


6



Barings BDC, Inc.
Unaudited Consolidated Statements of Cash Flows 
 
Six Months Ended
 
Six Months Ended
 
June 30, 2019
 
June 30, 2018
Cash flows from operating activities:
 
 
 
Net increase in net assets resulting from operations
$
42,409,363

 
$
29,788,533

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Purchases of portfolio investments
(171,350,190
)
 
(29,087,262
)
Repayments received/sales of portfolio investments
104,431,586

 
196,625,451

Purchases of short-term investments
(317,480,389
)
 

Sales of short-term investments
328,280,839

 

Loan origination and other fees received
2,420,157

 
292,999

Net realized loss on investments
79,751

 
45,583,345

Net realized gain on foreign currency borrowings

 
(1,081,211
)
Net unrealized appreciation of investments
(27,249,195
)
 
(53,257,297
)
Net unrealized depreciation of foreign currency borrowings

 
863,980

Payment-in-kind interest accrued, net of payments received

 
623,880

Amortization of deferred financing fees
558,712

 
1,333,044

Loss on extinguishment of debt
129,751

 

Accretion of loan origination and other fees
(543,501
)
 
(2,890,048
)
Amortization/accretion of purchased loan premium/discount
(114,594
)
 
(12,131
)
Depreciation expense

 
27,414

Stock-based compensation

 
2,933,454

Changes in operating assets and liabilities:
 
 
 
Interest and fees receivables
800,641

 
(3,588,400
)
Prepaid expenses and other assets
2,805,502

 
(75,446
)
Accounts payable and accrued liabilities
525,202

 
(1,628,061
)
Interest payable
1,589,621

 
(270,034
)
Net cash provided by (used in) operating activities
(32,706,744
)
 
186,182,210

Cash flows from financing activities:
 
 
 
Borrowings under credit facilities
120,000,000

 
4,100,000

Repayments of credit facilities
(404,500,000
)
 
(149,953,253
)
Proceeds from debt securitization
348,250,000

 

Financing fees paid
(8,246,691
)
 

Purchases of shares in repurchase plan
(9,649,300
)
 

Common stock withheld for payroll taxes upon vesting of restricted stock

 
(1,283,484
)
Cash dividends/distributions paid
(12,647,645
)
 
(14,407,384
)
Net cash provided by (used in) financing activities
33,206,364

 
(161,544,121
)
Net increase in cash
499,620

 
24,638,089

Cash, beginning of period
12,426,982

 
191,849,697

Cash, end of period
$
12,926,602

 
$
216,487,786

Supplemental disclosure of cash flow information:
 
 
 
Cash paid for interest
$
9,451,297

 
$
12,690,524

See accompanying notes.

7



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments
June 30, 2019
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
Non–Control / Non–Affiliate Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24 Hour Fitness Worldwide, Inc. (1.6%)*(4) (6)
 
Leisure Facilities
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.9% Cash, Due 05/25)
 
$
9,405,000

 
$
9,489,952

 
$
9,359,668

 
 
 
 
9,405,000

 
9,489,952

 
9,359,668

 
 
 
 
 
 
 
 
 
 
 
Accelerate Learning, Inc. (1.4%)*(5) (7)
 
Education Services
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.8% Cash, Due 12/24)
 
8,413,548

 
8,257,588

 
8,223,410

 
 
 
 
8,413,548

 
8,257,588

 
8,223,410

 
 
 
 
 
 
 
 
 
 
 
Accurus Aerospace Corporation (4.2%)*(5) (7)
 
Aerospace & Defense
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.7% Cash, Due 10/24)
 
24,875,000

 
24,538,750

 
24,367,058

 
 
 
 
24,875,000

 
24,538,750

 
24,367,058

 
 
 
 
 
 
 
 
 
 
 
Acrisure, LLC (1.7%)*(4) (5) (6)
 
Property & Casualty Insurance
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.8% Cash, Due 11/23)
 
9,924,433

 
9,980,744

 
9,866,574

 
 
 
 
9,924,433

 
9,980,744

 
9,866,574

 
 
 
 
 
 
 
 
 
 
 
ADMI Corp. (0.6%)*(6)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 04/25)
 
3,465,000

 
3,476,717

 
3,406,095

 
 
 
 
3,465,000

 
3,476,717

 
3,406,095

 
 
 
 
 
 
 
 
 
 
 
Aftermath Bidco Corporation (2.1%)*(5) (7)
 
Professional Services
 
First Lien Senior Secured Term Loan (LIBOR + 5.75%, 8.3% Cash, Due 04/25)
 
12,320,633

 
12,051,492

 
12,073,903

 
 
 
 
12,320,633

 
12,051,492

 
12,073,903

 
 
 
 
 
 
 
 
 
 
 
AlixPartners LLP (1.4%)*(4) (6)
 
Investment Banking & Brokerage
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 04/24)
 
8,017,975

 
8,058,811

 
7,990,152

 
 
 
 
8,017,975

 
8,058,811

 
7,990,152

 
 
 
 
 
 
 
 
 
 
 
Alliant Holdings LP (0.8%)*(6)
 
Property & Casualty Insurance
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.4% Cash, Due 05/25)
 
4,947,519

 
4,954,908

 
4,799,637

 
 
 
 
4,947,519

 
4,954,908

 
4,799,637

 
 
 
 
 
 
 
 
 
 
 
American Airlines Group Inc. (1.3%)*(3) (6)
 
Airport Services
 
First Lien Senior Secured Term Loan (LIBOR + 1.75%, 4.1% Cash, Due 06/25)
 
7,903,825

 
7,781,720

 
7,682,202

 
 
 
 
7,903,825

 
7,781,720

 
7,682,202

 
 
 
 
 
 
 
 
 
 
 
American Dental Partners, Inc. (1.7%)*(5)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.6% Cash, Due 03/23)
 
9,950,000

 
9,928,197

 
9,825,625

 
 
 
 
9,950,000

 
9,928,197

 
9,825,625

 
 
 
 
 
 
 
 
 
 
 
Amscan Holdings Inc. (0.4%)*(3) (6)
 
Specialty Stores
 
First Lien Senior Secured Term Loan (LIBOR + 2.50%, 4.9% Cash, Due 08/22)
 
2,392,591

 
2,407,508

 
2,374,216

 
 
 
 
2,392,591

 
2,407,508

 
2,374,216

 
 
 
 
 
 
 
 
 
 
 
Anju Software, Inc. (1.0%)*(5) (7)
 
Application Software
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.1% Cash, Due 02/25)
 
5,929,254

 
5,633,650

 
5,734,336

 
 
 
 
5,929,254

 
5,633,650

 
5,734,336

 
 
 
 
 
 
 
 
 
 
 
Apex Tool Group, LLC (1.2%)*(4)
 
Industrial Machinery
 
First Lien Senior Secured Term Loan (LIBOR + 3.75%, 6.2% Cash, Due 02/22)
 
7,235,884

 
7,260,843

 
6,940,443

 
 
 
7,235,884

 
7,260,843

 
6,940,443

 
 
 
 
 
 
 
 
 
 
 
Applied Systems Inc. (1.6%)*(4) (6)
 
Application Software
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.3% Cash, Due 09/24)
 
9,265,913

 
9,327,985

 
9,177,146

 
 
 
 
9,265,913

 
9,327,985

 
9,177,146

 
 
 
 
 
 
 
 
 
 
 
AQA Acquisition Holding, Inc. (f/k/a SmartBear) (0.8%)*(5) (7)
 
High Tech Industries
 
Second Lien Senior Secured Term Loan (LIBOR + 8.0%, 10.6% Cash, Due 05/24)
 
4,959,088

 
4,849,016

 
4,809,674

 
 
 
 
4,959,088

 
4,849,016

 
4,809,674

 
 
 
 
 
 
 
 
 
 
 
Arch Global Precision LLC (0.9%)*(5) (7)
 
Industrial Machinery
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.2% Cash, Due 04/26)
 
5,122,874

 
5,009,508

 
5,013,723

 
 
 
 
5,122,874

 
5,009,508

 
5,013,723

 
 
 
 
 
 
 
 
 
 
 
Armstrong Transport Group (Pele Buyer, LLC ) (0.9%)*(5) (7)
 
Transportation Services
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.2% Cash, Due 06/24)
 
5,571,363

 
5,443,844

 
5,446,103

 
 
 
 
5,571,363

 
5,443,844

 
5,446,103

 
 
 
 
 
 
 
 
 
 
 
Ascend Learning, LLC (1.3%)*(4) (6)
 
IT Consulting & Other Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.4% Cash, Due 07/24)
 
7,919,395

 
7,939,429

 
7,793,160

 
 
 
7,919,395

 
7,939,429

 
7,793,160


8



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
June 30, 2019
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
 
 
 
 
 
 
 
 
 
 
 
AssuredPartners Capital, Inc. (2.0%)*(4) (6)
 
Property & Casualty Insurance
 
First Lien Senior Secured Term Loan (LIBOR + 3.50%, 5.9% Cash, Due 10/24)
 
$
11,883,139

 
$
11,904,879

 
$
11,749,453

 
 
 
11,883,139

 
11,904,879

 
11,749,453

 
 
 
 
 
 
 
 
 
 
 
Aveanna Healthcare Holdings, Inc. (0.8%)*(6)
 
Health Care Facilities
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.7% Cash, Due 03/24)
 
1,481,136

 
1,463,506

 
1,431,147

 
 
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 7.9% Cash, Due 03/24)
 
3,547,530

 
3,548,438

 
3,417,442

 
 
 
 
5,028,666

 
5,011,944

 
4,848,589

 
 
 
 
 
 
 
 
 
 
 
AVSC Holding Corp. (1.3%)*(4) (5) (6)
 
Advertising
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 03/25)
 
7,919,799

 
7,880,321

 
7,684,661

 
 
 
 
7,919,799

 
7,880,321

 
7,684,661

 
 
 
 
 
 
 
 
 
 
 
Bausch Health Companies Inc. (1.4%)*(3) (4) (5) (6)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.4% Cash, Due 05/25)
 
8,314,123

 
8,354,237

 
8,308,968

 
 
 
 
8,314,123

 
8,354,237

 
8,308,968

 
 
 
 
 
 
 
 
 
 
 
BDP Buyer, LLC (4.2%)*(5) (7)
 
Air Freight & Logistics
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.9% Cash, Due 12/24)
 
24,937,500

 
24,474,847

 
24,373,790

 
 
 
 
24,937,500

 
24,474,847

 
24,373,790

 
 
 
 
 
 
 
 
 
 
 
Berlin Packaging LLC (1.4%)*(4) (5) (6)
 
Forest Products /Containers
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.4% Cash, Due 11/25)
 
8,415,000

 
8,433,455

 
8,157,838

 
 
 
 
8,415,000

 
8,433,455

 
8,157,838

 
 
 
 
 
 
 
 
 
 
 
Blackhawk Network Holdings Inc (1.7%)*(4) (6)
 
Data Processing & Outsourced Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.4% Cash, Due 06/25)
 
9,924,812

 
9,924,812

 
9,840,054

 
 
 
 
9,924,812

 
9,924,812

 
9,840,054

 
 
 
 
 
 
 
 
 
 
 
Brown Machine Group Holdings, LLC (0.9%)*(5) (7)
 
Industrial Equipment
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.8% Cash, Due 10/24)
 
5,554,988

 
5,493,064

 
5,454,872

 
 
 
 
5,554,988

 
5,493,064

 
5,454,872

 
 
 
 
 
 
 
 
 
 
 
Cadent, LLC (f/k/a Cross MediaWorks) (1.4%)*(5) (7)
 
Media & Entertainment
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.6% Cash, Due 09/23)
 
7,926,302

 
7,858,431

 
7,886,671

 
 
 
 
7,926,302

 
7,858,431

 
7,886,671

 
 
 
 
 
 
 
 
 
 
 
Caesars Entertainment Corp. (0.5%)*(3) (6)
 
Casinos & Gaming
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 12/24)
 
3,118,342

 
3,135,745

 
3,063,116

 
 
 
 
3,118,342

 
3,135,745

 
3,063,116

 
 
 
 
 
 
 
 
 
 
 
Calpine Corp. (0.8%)*(4) (6)
 
Independent Power Producers & Energy Traders
 
First Lien Senior Secured Term Loan7 (LIBOR + 2.5%, 4.8% Cash, Due 05/23)
 
128,456

 
128,871

 
127,886

 
 
First Lien Senior Secured Term Loan5 (LIBOR + 2.5%, 4.8% Cash, Due 01/24)
 
4,474,207

 
4,488,987

 
4,447,451

 
 
 
 
4,602,663

 
4,617,858

 
4,575,337

 
 
 
 
 
 
 
 
 
 
 
Campaign Monitor (UK) Limited (3.8%)*(5) (7)
 
Internet & Direct Marketing
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.3% Cash, Due 05/25)
 
22,457,627

 
22,037,215

 
22,030,785

 
 
 
 
22,457,627

 
22,037,215

 
22,030,785

 
 
 
 
 
 
 
 
 
 
 
Capital Automotive LLC (2.0%)*(4) (6)
 
Automotive Retail
 
First Lien Senior Secured Term Loan (LIBOR + 2.5%, 4.9% Cash, Due 03/24)
 
11,878,788

 
11,903,472

 
11,713,316

 
 
 
 
11,878,788

 
11,903,472

 
11,713,316

 
 
 
 
 
 
 
 
 
 
 
Concentra Inc. (0.5%)*(6)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 06/22)
 
2,912,371

 
2,936,346

 
2,908,731

 
 
 
 
2,912,371

 
2,936,346

 
2,908,731

 
 
 
 
 
 
 
 
 
 
 
Consolidated Container Co. LLC (1.3%)*(4) (6)
 
Metal & Glass Containers
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 05/24)
 
7,424,623

 
7,445,819

 
7,292,836

 
 
 
 
7,424,623

 
7,445,819

 
7,292,836

 
 
 
 
 
 
 
 
 
 
 
Container Store Group, Inc., (The) (0.5%)*(3) (6) (7)
 
Retail
 
First Lien Senior Secured Term Loan (LIBOR + 5.0%, 7.4% Cash, Due 09/23)
 
2,968,747

 
2,970,879

 
2,961,325

 
 
 
 
2,968,747

 
2,970,879

 
2,961,325

 
 
 
 
 
 
 
 
 
 
 
Core & Main LP (1.7%)*(4) (6)
 
Building Products
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 08/24)
 
9,924,433

 
9,968,225

 
9,890,293

 
 
 
 
9,924,433

 
9,968,225

 
9,890,293

 
 
 
 
 
 
 
 
 
 
 

9



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
June 30, 2019
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
CPG Intermediate LLC (0.4%)*(6)
 
Specialty Chemicals
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.6% Cash, Due 11/24)
 
$
2,121,536

 
$
2,123,850

 
$
2,110,037

 
 
 
 
2,121,536

 
2,123,850

 
2,110,037

 
 
 
 
 
 
 
 
 
 
 
CPI International Inc. (0.8%)*(6)
 
Electronic Components
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.9% Cash, Due 07/24)
 
4,771,351

 
4,778,794

 
4,734,087

 
 
 
 
4,771,351

 
4,778,794

 
4,734,087

 
 
 
 
 
 
 
 
 
 
 
Crosby Group (0.5%)*(5)
 
Industrial Equipment
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.1% Cash, Due 06/26)
 
3,000,000

 
2,970,000

 
2,971,260

 
 
 
 
3,000,000

 
2,970,000

 
2,971,260

 
 
 
 
 
 
 
 
 
 
 
CVS Holdings I, LP (MyEyeDr) (0.3%)*(6)
 
Health Care Supplies
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 02/25)
 
1,948,780

 
1,947,730

 
1,945,526

 
 
 
 
1,948,780

 
1,947,730

 
1,945,526

 
 
 
 
 
 
 
 
 
 
 
Dart Buyer, Inc. (1.2%)*(3) (5) (7)
 
Aerospace & Defense
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.8% Cash, Due 04/25)
 
7,455,733

 
7,168,354

 
7,195,052

 
 
 
 
7,455,733

 
7,168,354

 
7,195,052

 
 
 
 
 
 
 
 
 
 
 
Dimora Brands, Inc. (0.5%)*(6)
 
Building Products
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.9% Cash, Due 08/24)
 
2,941,442

 
2,944,651

 
2,856,875

 
 
 
 
2,941,442

 
2,944,651

 
2,856,875

 
 
 
 
 
 
 
 
 
 
 
Distinct Holdings, Inc. (1.3%)*(5) (7)
 
Systems Software
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.1% Cash, Due 12/23)
 
7,630,970

 
7,538,761

 
7,555,010

 
 
 
 
7,630,970

 
7,538,761

 
7,555,010

 
 
 
 
 
 
 
 
 
 
 
Dole Food Co. Inc. (2.3%)*(4) (6)
 
Packaged Foods & Meats
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.1% Cash, Due 04/24)
 
13,739,017

 
13,745,745

 
13,399,801

 
 
 
 
13,739,017

 
13,745,745

 
13,399,801

 
 
 
 
 
 
 
 
 
 
 
Duff & Phelps Corporation (2.2%)*(4) (6)
 
Research & Consulting Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 02/25)
 
13,274,078

 
13,308,206

 
12,845,059

 
 
 
 
13,274,078

 
13,308,206

 
12,845,059

 
 
 
 
 
 
 
 
 
 
 
Edelman Financial Center, LLC, The (f/k/a Edelman Financial Group, Inc.) (1.8%)*(4) (6)
 
Investment Banking & Brokerage
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.6% Cash, Due 07/25)
 
10,433,570

 
10,510,985

 
10,390,688

 
 
 
 
10,433,570

 
10,510,985

 
10,390,688

 
 
 
 
 
 
 
 
 
 
 
Endo International PLC (1.3%)*(3) (4) (6)
 
Pharmaceuticals
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.7% Cash, Due 04/24)
 
7,919,192

 
7,986,329

 
7,417,670

 
 
 
 
7,919,192

 
7,986,329

 
7,417,670

 
 
 
 
 
 
 
 
 
 
 
Equian Buyer Corp. (0.6%)*(6)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 05/24)
 
3,454,432

 
3,459,796

 
3,449,250

 
 
 
 
3,454,432

 
3,459,796

 
3,449,250

 
 
 
 
 
 
 
 
 
 
 
Exeter Property Group, LLC (2.1%)*(5) (7)
 
Real Estate
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%,6.9% Cash, Due 08/24)
 
12,500,000

 
12,322,598

 
12,409,641

 
 
 
 
12,500,000

 
12,322,598

 
12,409,641

 
 
 
 
 
 
 
 
 
 
 
ExGen Renewables IV, LLC (f/k/a Exelon Corp.) (0.5%)*(3) (6)
 
Electric Utilities
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 11/24)
 
2,865,257

 
2,890,666

 
2,739,902

 
 
 
 
2,865,257

 
2,890,666

 
2,739,902

 
 
 
 
 
 
 
 
 
 
 
Eyemart Express (0.6%)*(6)
 
Retail
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.4% Cash, Due 08/24)
 
3,469,830

 
3,480,691

 
3,433,674

 
 
 
 
3,469,830

 
3,480,691

 
3,433,674

 
 
 
 
 
 
 
 
 
 
 
Fieldwood Energy LLC (1.6%)*(4) (5) (6)
 
Oil & Gas Equipment & Services
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.7% Cash, Due 04/22)
 
10,000,000

 
10,078,440

 
9,240,600

 
 
 
 
10,000,000

 
10,078,440

 
9,240,600

 
 
 
 
 
 
 
 
 
 
 
Filtration Group Corporation (1.9%)*(4) (6)
 
Industrial Machinery
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.4% Cash, Due 03/25)
 
10,889,724

 
10,970,741

 
10,856,620

 
 
 
 
10,889,724

 
10,970,741

 
10,856,620

 
 
 
 
 
 
 
 
 
 
 
Flex Acquisition Holdings, Inc. (1.6%)*(4) (5) (6)
 
Paper Packaging
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 06/25)
 
9,836,288

 
9,855,204

 
9,316,342

 
 
 
 
9,836,288

 
9,855,204

 
9,316,342

 
 
 
 
 
 
 
 
 
 
 

10



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
June 30, 2019
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
GMS Inc. (1.2%)*(3) (5) (6)
 
Construction & Engineering
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 06/25)
 
$
7,443,609

 
$
7,405,647

 
$
7,240,473

 
 
 
 
7,443,609

 
7,405,647

 
7,240,473

 
 
 
 
 
 
 
 
 
 
 
Graftech International Ltd. (1.7%)*(3) (4) (6)
 
Specialty Chemicals
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.9% Cash, Due 02/25)
 
10,113,889

 
10,193,214

 
9,911,611

 
 
 
 
10,113,889

 
10,193,214

 
9,911,611

 
 
 
 
 
 
 
 
 
 
 
Gulf Finance, LLC (0.1%)*(4)
 
Oil & Gas Exploration & Production
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.6% Cash, Due 08/23)
 
1,064,315

 
910,462

 
866,970

 
 
 
 
1,064,315

 
910,462

 
866,970

 
 
 
 
 
 
 
 
 
 
 
Harbor Freight Tools USA Inc.(1.0%)*(6)
 
Specialty Stores
 
First Lien Senior Secured Term Loan (LIBOR + 2.5%, 4.9% Cash, Due 08/23)
 
5,994,942

 
5,940,116

 
5,829,122

 
 
 
 
5,994,942

 
5,940,116

 
5,829,122

 
 
 
 
 
 
 
 
 
 
 
Hayward Industries, Inc. (1.4%)*(4) (6)
 
Leisure Products
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.9% Cash, Due 08/24)
 
8,414,358

 
8,443,119

 
8,227,643

 
 
 
 
8,414,358

 
8,443,119

 
8,227,643

 
 
 
 
 
 
 
 
 
 
 
Healthline Media, Inc (2.2%)*(5) (7)
 
Healthcare
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.1% Cash, Due 11/24)
 
12,776,691

 
12,543,230

 
12,719,988

 
 
 
 
12,776,691

 
12,543,230

 
12,719,988

 
 
 
 
 
 
 
 
 
 
 
Hertz Corporation (The) (1.0%)*(3) (6)
 
Rental & Leasing Services
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 06/23)