10-Q 1 a2019033110qbbdc.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 March 31, 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 May 9, 2019 was 50,530,208.




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
 
March 31, 2019
 
December 31, 2018
 
(Unaudited)
 
 
Assets:
 
 
 
Investments at fair value:
 
 
 
Non-Control / Non-Affiliate investments (cost of $1,153,635,479 and $1,128,694,715 as of March 31, 2019 and December 31, 2018, respectively)
$
1,126,969,755

 
$
1,076,631,804

Short-term investments (cost of $62,414,373 and $45,223,941 as of March 31, 2019 and December 31, 2018, respectively)
62,414,373

 
45,223,941

Total investments at fair value
1,189,384,128

 
1,121,855,745

Cash
3,056,609

 
12,426,982

Interest and fees receivable
5,247,730

 
6,008,700

Prepaid expenses and other assets
2,885,001

 
4,123,742

Deferred financing fees
6,472,994

 
251,908

Receivable from unsettled transactions
4,124,686

 
22,909,998

Total assets
$
1,211,171,148

 
$
1,167,577,075

Liabilities:
 
 
 
Accounts payable and accrued liabilities
$
6,039,494

 
$
5,327,249

Interest payable
334,161

 
749,525

Payable from unsettled transactions
636,179

 
28,533,014

Borrowings under credit facilities
620,000,000

 
570,000,000

Total liabilities
627,009,834

 
604,609,788

Commitments and contingencies (Note 9)
 
 
 
Net Assets:
 
 
 
Common stock, $0.001 par value per share (150,000,000 shares authorized, 50,690,659 and 51,284,064 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively)
50,691

 
51,284

Additional paid-in capital
879,033,345

 
884,894,249

Total distributable earnings (loss)
(294,922,722
)
 
(321,978,246
)
Total net assets
584,161,314

 
562,967,287

Total liabilities and net assets
$
1,211,171,148

 
$
1,167,577,075

Net asset value per share
$
11.52

 
$
10.98


See accompanying notes.


3



Barings BDC, Inc.
Unaudited Consolidated Statements of Operations
 
Three Months
Ended
 
Three Months
Ended
 
March 31,
2019
 
March 31,
2018
Investment income:
 
 
 
Interest income:
 
 
 
Non-Control / Non-Affiliate investments
$
17,861,319

 
$
19,006,050

Affiliate investments

 
2,660,187

Control investments

 
275,036

Short-term investments
172,695

 

Total interest income
18,034,014

 
21,941,273

Dividend income:
 
 
 
Non-Control / Non-Affiliate investments

 
185,712

Affiliate investments

 
4,550

Total dividend income

 
190,262

Fee and other income:
 
 
 
Non-Control / Non-Affiliate investments
301,057

 
1,293,717

Affiliate investments

 
394,273

Control investments

 
100,000

Total fee and other income
301,057

 
1,787,990

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

 
1,306,581

Affiliate investments

 
422,140

Total payment-in-kind interest income

 
1,728,721

Interest income from cash
4,687

 
427,841

Total investment income
18,339,758

 
26,076,087

Operating expenses:
 
 
 
Interest and other financing fees
5,844,172

 
7,590,548

Base management fee (Note 2)
2,450,995

 

Compensation expenses
118,444

 
4,092,852

General and administrative expenses (Note 2)
1,968,860

 
1,668,509

Total operating expenses
10,382,471

 
13,351,909

Net investment income
7,957,287

 
12,724,178

Realized and unrealized gains (losses) on investments and foreign currency borrowings:
 
 
 
Net realized gains (losses):
 
 
 
Non-Control / Non-Affiliate investments
(129,775
)
 
(11,939,484
)
Affiliate investments

 
3,257,198

Control investments

 
4,000

Net realized losses on investments
(129,775
)
 
(8,678,286
)
Foreign currency borrowings

 
1,423,126

Net realized losses
(129,775
)
 
(7,255,160
)
Net unrealized appreciation (depreciation):
 
 
 
Non-Control / Non-Affiliate investments
25,397,188

 
9,932,384

Affiliate investments

 
1,455,331

Control investments

 
(1,370,875
)
Net unrealized appreciation on investments
25,397,188

 
10,016,840

Foreign currency borrowings

 
(963,415
)
Net unrealized appreciation
25,397,188

 
9,053,425

Net realized and unrealized appreciation on investments and foreign currency borrowings
25,267,413

 
1,798,265

Loss on extinguishment of debt
(44,395
)
 

Provision for taxes
(17,992
)
 
(50,790
)
Net increase in net assets resulting from operations
$
33,162,313

 
$
14,471,653

Net investment income per share—basic and diluted
$
0.16

 
$
0.27

Net increase in net assets resulting from operations per share—basic and diluted
$
0.65

 
$
0.30

Dividends/distributions per share:
 
 
 
Total dividends/distributions per share
$
0.12

 
$
0.30

Weighted average shares outstanding—basic and diluted
51,157,646

 
47,898,859

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
 
Number
of Shares
 
Par
Value
 
 
 
Balance, December 31, 2017
47,740,832

 
$
47,741

 
$
823,614,881

 
$
(182,387,248
)
 
$
641,275,374

Net investment income

 

 

 
12,724,178

 
12,724,178

Stock-based compensation

 

 
1,455,543

 

 
1,455,543

Net realized loss on investments / foreign currency borrowings

 

 

 
(7,255,160
)
 
(7,255,160
)
Net unrealized appreciation of investments / foreign currency borrowings

 

 

 
9,053,425

 
9,053,425

Provision for taxes

 

 

 
(50,790
)
 
(50,790
)
Dividends / distributions

 

 

 
(14,407,384
)
 
(14,407,384
)
Issuance of restricted stock
409,000

 
409

 
(409
)
 

 

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

 
(1,283,484
)
Balance, March 31, 2018
48,024,614

 
$
48,025

 
$
823,786,656

 
$
(182,322,979
)
 
$
641,511,702

 
 
Common Stock
 
Additional
Paid-In
Capital
 
Total Distributable Earnings (Loss)
 
Total
Net
Assets
 
Number
of Shares
 
Par
Value
 
 
 
Balance, December 31, 2018
51,284,064

 
$
51,284

 
$
884,894,249

 
$
(321,978,246
)
 
$
562,967,287

Net investment income

 

 

 
7,957,287

 
7,957,287

Net realized loss on investments / foreign currency borrowings

 

 

 
(129,775
)
 
(129,775
)
Net unrealized appreciation of investments / foreign currency borrowings

 

 

 
25,397,188

 
25,397,188

Loss on extinguishment of debt

 

 

 
(44,395
)
 
(44,395
)
Provision for taxes

 

 

 
(17,992
)
 
(17,992
)
Dividends / distributions

 

 


 
(6,106,789
)
 
(6,106,789
)
Purchases of shares in repurchase plan
(593,405
)
 
(593
)
 
(5,860,904
)
 

 
(5,861,497
)
Balance, March 31, 2019
50,690,659

 
$
50,691

 
$
879,033,345

 
$
(294,922,722
)
 
$
584,161,314


See accompanying notes.

5



Barings BDC, Inc.
Unaudited Consolidated Statements of Cash Flows 
 
Three Months Ended
 
Three Months Ended
 
March 31, 2019
 
March 31, 2018
Cash flows from operating activities:
 
 
 
Net increase in net assets resulting from operations
$
33,162,313

 
$
14,471,653

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Purchases of portfolio investments
(93,255,027
)
 
(28,285,073
)
Repayments received/sales of portfolio investments
58,368,472

 
81,440,184

Purchases of short-term investments
(174,926,000
)
 

Sales of short-term investments
157,735,568

 

Loan origination and other fees received
987,006

 
205,499

Net realized loss on investments
129,775

 
8,678,286

Net realized gain on foreign currency borrowings

 
(1,423,126
)
Net unrealized appreciation of investments
(25,397,188
)
 
(9,934,939
)
Net unrealized depreciation of foreign currency borrowings

 
963,415

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

 
1,425,537

Amortization of deferred financing fees
180,746

 
662,793

Loss on extinguishment of debt
44,395

 

Accretion of loan origination and other fees
(224,397
)
 
(1,224,392
)
Amortization/accretion of purchased loan premium/discount
(58,115
)
 
(5,986
)
Depreciation expense

 
13,707

Stock-based compensation

 
1,455,543

Changes in operating assets and liabilities:
 
 
 
Interest and fees receivables
760,970

 
849

Prepaid expenses and other assets
1,238,741

 
(640,155
)
Accounts payable and accrued liabilities
712,245

 
(3,246,232
)
Interest payable
(415,364
)
 
(2,194,990
)
Net cash provided by (used in) operating activities
(40,955,860
)
 
62,362,573

Cash flows from financing activities:
 
 
 
Borrowings under credit facilities
85,000,000

 

Repayments of credit facilities
(35,000,000
)
 
(30,609,489
)
Financing fees paid
(6,446,227
)
 

Purchases of shares in repurchase plan
(5,861,497
)
 

Common stock withheld for payroll taxes upon vesting of restricted stock

 
(1,283,484
)
Cash dividends/distributions paid
(6,106,789
)
 
(14,407,384
)
Net cash provided by (used in) financing activities
31,585,487

 
(46,300,357
)
Net increase (decrease) in cash
(9,370,373
)
 
16,062,216

Cash, beginning of period
12,426,982

 
191,849,697

Cash, end of period
$
3,056,609

 
$
207,911,913

Supplemental disclosure of cash flow information:
 
 
 
Cash paid for interest
$
5,589,938

 
$
8,748,005

See accompanying notes.

6



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments
March 31, 2019
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
Non–Control / Non–Affiliate Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24 Hour Fitness Worldwide, Inc. (1.6%)*(4)
 
Leisure Facilities
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 05/25)
 
$
9,428,750

 
$
9,516,948

 
$
9,405,178

 
 
 
 
9,428,750

 
9,516,948

 
9,405,178

 
 
 
 
 
 
 
 
 
 
 
Accelerate Learning, Inc. (1.4%)*(5) (6)
 
Education Services
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 7.1% Cash, Due 12/24)
 
8,434,687

 
8,272,539

 
8,184,651

 
 
 
 
8,434,687

 
8,272,539

 
8,184,651

 
 
 
 
 
 
 
 
 
 
 
Accurus Aerospace Corporation (4.3%)*(5) (6)
 
Aerospace & Defense
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 7.1% Cash, Due 10/24)
 
24,937,500

 
24,587,478

 
24,164,637

 
 
 
 
 
24,937,500

 
24,587,478

 
24,164,637

 
 
 
 
 
 
 
 
 
 
 
Acrisure, LLC (1.7%)*(4) (5)
 
Property & Casualty Insurance
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.9% Cash, Due 11/23)
 
9,924,433

 
9,983,512

 
9,847,916

 
 
 
 
9,924,433

 
9,983,512

 
9,847,916

 
 
 
 
 
 
 
 
 
 
 
ADMI Corp. (0.6%)*(4) (5)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 04/25)
 
3,473,750

 
3,485,928

 
3,431,787

 
 
 
 
3,473,750

 
3,485,928

 
3,431,787

 
 
 
 
 
 
 
 
 
 
 
AlixPartners LLP (1.4%)*(4)
 
Investment Banking & Brokerage
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.3% Cash, Due 04/24)
 
8,038,481

 
8,081,313

 
7,974,173

 
 
 
 
8,038,481

 
8,081,313

 
7,974,173

 
 
 
 
 
 
 
 
 
 
 
Alliant Holdings LP (0.8%)*(4)
 
Property & Casualty Insurance
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 05/25)
 
4,972,506

 
4,980,180

 
4,773,606

 
 
 
 
4,972,506

 
4,980,180

 
4,773,606

 
 
 
 
 
 
 
 
 
 
 
American Airlines Group Inc. (1.3%)*(3) (4)
 
Airport Services
 
First Lien Senior Secured Term Loan (LIBOR + 1.75%, 4.2% Cash, Due 06/25)
 
7,985,519

 
7,857,641

 
7,758,810

 
 
 
 
7,985,519

 
7,857,641

 
7,758,810

 
 
 
 
 
 
 
 
 
 
 
American Dental Partners, Inc. (1.7%)*(5)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.9% Cash, Due 03/23)
 
9,975,000

 
9,951,869

 
9,862,781

 
 
 
 
9,975,000

 
9,951,869

 
9,862,781

 
 
 
 
 
 
 
 
 
 
 
Amscan Holdings Inc. (0.4%)*(3) (4)
 
Specialty Stores
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.0% Cash, Due 08/22)
 
2,401,844

 
2,417,936

 
2,381,164

 
 
 
 
2,401,844

 
2,417,936

 
2,381,164

 
 
 
 
 
 
 
 
 
 
 
Anju Software, Inc. (1.0%)*(5) (6)
 
Application Software
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.4% Cash, Due 02/25)
 
5,944,114

 
5,636,428

 
5,737,606

 
 
 
 
5,944,114

 
5,636,428

 
5,737,606

 
 
 
 
 
 
 
 
 
 
 
Apex Tool Group, LLC (1.2%)*(4)
 
Industrial Machinery
 
First Lien Senior Secured Term Loan (LIBOR + 3.75%, 6.2% Cash, Due 02/22)
 
7,282,870

 
7,310,254

 
7,058,339

 
 
 
7,282,870

 
7,310,254

 
7,058,339

 
 
 
 
 
 
 
 
 
 
 
Applied Systems Inc. (1.6%)*(4)
 
Application Software
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 09/24)
 
9,289,491

 
9,354,295

 
9,187,864

 
 
 
 
9,289,491

 
9,354,295

 
9,187,864

 
 
 
 
 
 
 
 
 
 
 
AQA Acquisition Holding, Inc. (f/k/a SmartBear) (0.8%)*(5) (6)
 
High Tech Industries
 
Second Lien Senior Secured Term Loan (LIBOR + 8.0%, 10.8% Cash, Due 05/24)
 
4,959,088

 
4,844,740

 
4,761,871

 
 
 
 
4,959,088

 
4,844,740

 
4,761,871

 
 
 
 
 
 
 
 
 
 
 
Ascend Learning, LLC (1.3%)*(4)
 
IT Consulting & Other Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 07/24)
 
7,939,547

 
7,960,498

 
7,757,572

 
 
 
7,939,547

 
7,960,498

 
7,757,572

 
 
 
 
 
 
 
 
 
 
 
AssuredPartners Capital, Inc. (2.0%)*(4)
 
Property & Casualty Insurance
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 10/24)
 
11,917,421

 
11,940,095

 
11,515,208

 
 
 
11,917,421

 
11,940,095

 
11,515,208

 
 
 
 
 
 
 
 
 
 
 
Aveanna Healthcare Holdings, Inc. (0.8%)*(4) (6)
 
Health Care Facilities
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.9% Cash, Due 03/24)
 
1,484,924

 
1,466,457

 
1,421,814

 
 
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 8.1% Cash, Due 03/24)
 
3,556,421

 
3,557,348

 
3,458,620

 
 
 
 
5,041,345

 
5,023,805

 
4,880,434

 
 
 
 
 
 
 
 
 
 
 

7



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
March 31, 2019
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
AVSC Holding Corp. (1.3%)*(4)
 
Advertising
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.8% Cash, Due 03/25)
 
$
7,959,900

 
$
7,918,741

 
$
7,741,002

 
 
 
 
7,959,900

 
7,918,741

 
7,741,002

 
 
 
 
 
 
 
 
 
 
 
Bausch Health Companies Inc. (1.4%)*(3) (4) (5)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 05/25)
 
8,477,238

 
8,519,575

 
8,416,710

 
 
 
 
8,477,238

 
8,519,575

 
8,416,710

 
 
 
 
 
 
 
 
 
 
 
BDP Buyer, LLC (f/k/a BDP International, Inc.) (4.1%)*(5) (6)
 
Air Freight & Logistics
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.9% Cash, Due 12/24)
 
24,937,500

 
24,457,944

 
24,200,193

 
 
 
 
24,937,500

 
24,457,944

 
24,200,193

 
 
 
 
 
 
 
 
 
 
 
Berlin Packaging LLC (1.4%)*(4) (5)
 
Forest Products /Containers
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 11/25)
 
8,436,250

 
8,455,365

 
8,157,854

 
 
 
 
8,436,250

 
8,455,365

 
8,157,854

 
 
 
 
 
 
 
 
 
 
 
Blackhawk Network Holdings Inc (1.7%)*(4)
 
Data Processing & Outsourced Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 06/25)
 
9,949,875

 
9,949,875

 
9,760,827

 
 
 
 
9,949,875

 
9,949,875

 
9,760,827

 
 
 
 
 
 
 
 
 
 
 
Brown Machine Group Holdings, LLC (f/k/a Brown Machine LLC) (0.9%)*(5) (6)
 
Industrial Equipment
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.7% Cash, Due 10/24)
 
5,554,988

 
5,490,691

 
5,398,160

 
 
 
 
5,554,988

 
5,490,691

 
5,398,160

 
 
 
 
 
 
 
 
 
 
 
Cadent, LLC (f/k/a Cross MediaWorks) (1.4%)*(5) (6)
 
Media & Entertainment
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.7% Cash, Due 09/23)
 
7,926,302

 
7,855,018

 
7,886,671

 
 
 
 
7,926,302

 
7,855,018

 
7,886,671

 
 
 
 
 
 
 
 
 
 
 
Caesars Entertainment Corp. (0.5%)*(3) (4)
 
Casinos & Gaming
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 12/24)
 
3,126,256

 
3,144,398

 
3,081,582

 
 
 
 
3,126,256

 
3,144,398

 
3,081,582

 
 
 
 
 
 
 
 
 
 
 
Calpine Corp. (0.8%)*(4)
 
Independent Power Producers & Energy Traders
 
First Lien Senior Secured Term Loan7 (LIBOR + 2.5%, 5.1% Cash, Due 05/23)
 
128,787

 
129,227

 
127,517

 
 
First Lien Senior Secured Term Loan5 (LIBOR + 2.5%, 5.1% Cash, Due 01/24)
 
4,485,859

 
4,501,412

 
4,437,725

 
 
 
 
4,614,646

 
4,630,639

 
4,565,242

 
 
 
 
 
 
 
 
 
 
 
Capital Automotive LLC (2.0%)*(4)
 
Automotive Retail
 
First Lien Senior Secured Term Loan (LIBOR + 2.5%, 5.0% Cash, Due 03/24)
 
11,909,091

 
11,935,011

 
11,778,805

 
 
 
 
11,909,091

 
11,935,011

 
11,778,805

 
 
 
 
 
 
 
 
 
 
 
Concentra Inc. (0.5%)*(4)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 06/22)
 
2,912,371

 
2,938,263

 
2,888,111

 
 
 
 
2,912,371

 
2,938,263

 
2,888,111

 
 
 
 
 
 
 
 
 
 
 
Consolidated Container Co. LLC (1.3%)*(4)
 
Metal & Glass Containers
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 05/24)
 
7,443,467

 
7,465,664

 
7,314,770

 
 
 
 
7,443,467

 
7,465,664

 
7,314,770

 
 
 
 
 
 
 
 
 
 
 
Container Store Group, Inc., (The) (0.5%)*(3) (4) (6)
 
Retail
 
First Lien Senior Secured Term Loan (LIBOR + 5.0%, 7.5% Cash, Due 09/23)
 
2,988,521

 
2,990,675

 
2,966,107

 
 
 
 
2,988,521

 
2,990,675

 
2,966,107

 
 
 
 
 
 
 
 
 
 
 
Core & Main LP (1.7%)*(4)
 
Building Products
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.6% Cash, Due 08/24)
 
9,949,622

 
9,995,412

 
9,858,384

 
 
 
 
9,949,622

 
9,995,412

 
9,858,384

 
 
 
 
 
 
 
 
 
 
 
CPG Intermediate LLC (0.4%)*(5)
 
Specialty Chemicals
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 11/24)
 
2,166,859

 
2,169,317

 
2,118,105

 
 
 
 
2,166,859

 
2,169,317

 
2,118,105

 
 
 
 
 
 
 
 
 
 
 
CPI International Inc. (0.8%)*(4) (6)
 
Electronic Components
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 07/24)
 
4,783,492

 
4,791,281

 
4,663,905

 
 
 
 
4,783,492

 
4,791,281

 
4,663,905

 
 
 
 
 
 
 
 
 
 
 
CVS Holdings I, LP (MyEyeDr) (0.3%)*(4) (5)
 
Health Care Supplies
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.3% Cash, Due 02/25)
 
1,953,701

 
1,952,607

 
1,882,879

 
 
 
 
1,953,701

 
1,952,607

 
1,882,879

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

8



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
March 31, 2019
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
Dimora Brands, Inc. (0.5%)*(5)
 
Building Products
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 08/24)
 
$
2,977,330

 
$
2,980,740

 
$
2,895,453

 
 
 
 
2,977,330

 
2,980,740

 
2,895,453

 
 
 
 
 
 
 
 
 
 
 
Dole Food Co. Inc. (2.3%)*(4)
 
Packaged Foods & Meats
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 04/24)
 
13,829,405

 
13,836,514

 
13,158,679

 
 
 
 
13,829,405

 
13,836,514

 
13,158,679

 
 
 
 
 
 
 
 
 
 
 
Duff & Phelps Corporation (2.2%)*(4)
 
Research & Consulting Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 02/25)
 
13,307,683

 
13,343,167

 
13,013,849

 
 
 
 
13,307,683

 
13,343,167

 
13,013,849

 
 
 
 
 
 
 
 
 
 
 
Edelman Financial Group, Inc. (1.8%)*(4)
 
Investment Banking & Brokerage
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 6.0% Cash, Due 07/25)
 
10,459,785

 
10,540,132

 
10,365,019

 
 
 
 
10,459,785

 
10,540,132

 
10,365,019

 
 
 
 
 
 
 
 
 
 
 
Endo International PLC (1.3%)*(3) (4)
 
Pharmaceuticals
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.8% Cash, Due 04/24)
 
7,939,394

 
8,009,672

 
7,779,336

 
 
 
 
7,939,394

 
8,009,672

 
7,779,336

 
 
 
 
 
 
 
 
 
 
 
Equian Buyer Corp. (0.6%)*(4)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 05/24)
 
3,473,485

 
3,479,110

 
3,404,015

 
 
 
 
3,473,485

 
3,479,110

 
3,404,015

 
 
 
 
 
 
 
 
 
 
 
Exelon Corp. (0.5%)*(3) (4)
 
Electric Utilities
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.6% Cash, Due 11/24)
 
3,000,000

 
3,027,667

 
2,805,000

 
 
 
 
3,000,000

 
3,027,667

 
2,805,000

 
 
 
 
 
 
 
 
 
 
 
Exeter Property Group, LLC (2.1%)*(5) (6)
 
Real Estate
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%,7.0% Cash, Due 08/24)
 
12,500,000

 
12,315,104

 
12,399,262

 
 
 
 
12,500,000

 
12,315,104

 
12,399,262

 
 
 
 
 
 
 
 
 
 
 
Eyemart Express (0.6%)*(4) (5)
 
Retail
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 08/24)
 
3,469,830

 
3,481,159

 
3,426,457

 
 
 
 
3,469,830

 
3,481,159

 
3,426,457

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

 
10,084,824

 
9,600,000

 
 
 
 
10,000,000

 
10,084,824

 
9,600,000

 
 
 
 
 
 
 
 
 
 
 
Filtration Group Corporation (1.9%)*(4)
 
Industrial Machinery
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 03/25)
 
10,917,293

 
11,001,525

 
10,837,706

 
 
 
 
10,917,293

 
11,001,525

 
10,837,706

 
 
 
 
 
 
 
 
 
 
 
Flex Acquisition Holdings, Inc. (1.6%)*(4) (5)
 
Paper Packaging
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.9% Cash, Due 06/25)
 
9,947,506

 
9,967,342

 
9,624,212

 
 
 
 
9,947,506

 
9,967,342

 
9,624,212

 
 
 
 
 
 
 
 
 
 
 
GlobalTranz Enterprises, Inc.(0.5%)*(5) (6)
 
Transportation Services
 
Second Lien Senior Secured Term Loan (LIBOR + 8.0%, 10.5% Cash, Due 10/26)
 
2,980,874

 
2,938,129

 
2,891,062

 
 
 
 
2,980,874

 
2,938,129

 
2,891,062

 
 
 
 
 
 
 
 
 
 
 
GMS Inc. (1.2%)*(3) (4) (5)
 
Construction & Engineering
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 06/25)
 
7,462,406

 
7,422,955

 
7,216,743

 
 
 
 
7,462,406

 
7,422,955

 
7,216,743

 
 
 
 
 
 
 
 
 
 
 
Graftech International Ltd. (1.7%)*(3) (4) (6)
 
Specialty Chemicals
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 02/25)
 
10,113,889

 
10,196,240

 
10,075,962

 
 
 
 
10,113,889

 
10,196,240

 
10,075,962

 
 
 
 
 
 
 
 
 
 
 
Gulf Finance, LLC (0.1)*(4)
 
Oil & Gas Exploration & Production
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.8% Cash, Due 08/23)
 
1,066,984

 
905,535

 
846,918

 
 
 
 
1,066,984

 
905,535

 
846,918

 
 
 
 
 
 
 
 
 
 
 
Harbor Freight Tools USA Inc.(1.0%)*(4)
 
Specialty Stores
 
First Lien Senior Secured Term Loan (LIBOR + 2.5%, 5.0% Cash, Due 08/23)
 
5,994,942

 
5,937,111

 
5,845,068

 
 
 
 
5,994,942

 
5,937,111

 
5,845,068

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

9



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
March 31, 2019
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
Hayward Industries, Inc. (1.4%)*(4)
 
Leisure Products
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 08/24)
 
$
8,435,768

 
$
8,465,829

 
$
8,261,823

 
 
 
 
8,435,768

 
8,465,829

 
8,261,823

 
 
 
 
 
 
 
 
 
 
 
Healthline Media, Inc (2.1%)*(5) (6)
 
Healthcare
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 7.6% Cash, Due 11/24)
 
12,808,793

 
12,566,034

 
12,358,502

 
 
 
 
12,808,793

 
12,566,034

 
12,358,502

 
 
 
 
 
 
 
 
 
 
 
Hertz Corporation (The) (1.0%)*(3) (4)
 
Rental & Leasing Services
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.3% Cash, Due 06/23)
 
5,907,455

 
5,897,407

 
5,791,196

 
 
 
 
5,907,455

 
5,897,407

 
5,791,196

 
 
 
 
 
 
 
 
 
 
 
Holley Performance Products (Holley Purchaser, Inc.) (3.8%)*(5) (6)
 
Packaging
 
First Lien Senior Secured Term Loan (LIBOR + 5.0%, 7.7% Cash, Due 10/25)
 
22,478,663

 
22,158,066

 
22,029,089

 
 
 
 
22,478,663

 
22,158,066

 
22,029,089

 
 
 
 
 
 
 
 
 
 
 
Hub International Limited (1.7%)*(4) (5)
 
Property & Casualty Insurance
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.5% Cash, Due 04/25)
 
10,307,113

 
10,321,137

 
9,954,918

 
 
 
 
10,307,113

 
10,321,137

 
9,954,918

 
 
 
 
 
 
 
 
 
 
 
Husky Injection Molding Systems Ltd. (1.3%)*(3) (4)
 
Industrial Machinery
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 03/25)
 
8,025,373

 
7,753,213

 
7,447,546

 
 
 
 
8,025,373

 
7,753,213

 
7,447,546

 
 
 
 
 
 
 
 
 
 
 
HW Holdco, LLC (f/k/a Hanley Wood LLC) (1.3%)*(5) (6)
 
Advertising
 
First Lien Senior Secured Term Loan (LIBOR + 6.25%, 8.9% Cash, Due 12/24)
 
7,642,137

 
7,459,275

 
7,573,985

 
 
 
 
7,642,137

 
7,459,275

 
7,573,985

 
 
 
 
 
 
 
 
 
 
 
Hyland Software Inc. (1.5%)*(4)
 
Technology Distributors
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 07/24)
 
8,693,355

 
8,752,151

 
8,669,796

 
 
 
 
8,693,355

 
8,752,151

 
8,669,796

 
 
 
 
 
 
 
 
 
 
 
Immucor Inc. (0.4%)*(4)
 
Healthcare
 
First Lien Senior Secured Term Loan (LIBOR + 5.0%, 7.6% Cash, Due 06/21)
 
2,485,031

 
2,515,150

 
2,478,818

 
 
 
 
2,485,031

 
2,515,150

 
2,478,818

 
 
 
 
 
 
 
 
 
 
 
Infor Software Parent, LLC (0.9%)*(4)
 
Systems Software
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 02/22)
 
5,000,000

 
5,008,484

 
4,972,650

 
 
 
 
5,000,000

 
5,008,484

 
4,972,650

 
 
 
 
 
 
 
 
 
 
 
Institutional Shareholder Services, Inc. (0.8%)*(5) (6)
 
Diversified Support Services
 
Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 11.1% Cash, Due 03/27)
 
4,951,685

 
4,804,012

 
4,835,092

 
 
 
 
4,951,685

 
4,804,012

 
4,835,092

 
 
 
 
 
 
 
 
 
 
 
Intelsat S.A. (2.2%)*(3) (4)
 
Broadcasting
 
First Lien Senior Secured Term Loan (LIBOR + 3.75%, 6.2% Cash, Due 11/23)
 
13,000,000

 
13,076,301

 
12,792,780

 
 
 
 
13,000,000

 
13,076,301

 
12,792,780

 
 
 
 
 
 
 
 
 
 
 
ION Trading Technologies Ltd. (2.5%)*(4)
 
Electrical Components & Equipment
 
First Lien Senior Secured Term Loan (LIBOR + 4.0%, 6.7% Cash, Due 11/24)
 
14,819,339

 
14,787,474

 
14,350,899

 
 
 
 
14,819,339

 
14,787,474

 
14,350,899

 
 
 
 
 
 
 
 
 
 
 
IRB Holding Corporation (1.3%)*(4) (5)
 
Food Retail
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 02/25)
 
7,949,778

 
7,968,682

 
7,741,097

 
 
 
 
7,949,778

 
7,968,682

 
7,741,097

 
 
 
 
 
 
 
 
 
 
 
Jaguar Holding Company I (0.8%)*(4)
 
Life Sciences Tools & Services
 
First Lien Senior Secured Term Loan (LIBOR + 2.5%, 5.0% Cash, Due 08/22)
 
4,961,340

 
4,962,462

 
4,906,120

 
 
 
 
4,961,340

 
4,962,462

 
4,906,120

 
 
 
 
 
 
 
 
 
 
 
JS Held, LLC (3.1%)*(5) (6)
 
Property & Casualty Insurance
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 7.1% Cash, Due 09/24)
 
18,429,608

 
18,247,336

 
17,918,119

 
 
 
 
18,429,608

 
18,247,336

 
17,918,119

 
 
 
 
 
 
 
 
 
 
 
Kenan Advantage Group Inc. (1.4%)*(4) (5)
 
Trucking
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 07/22)
 
8,428,113

 
8,421,612

 
8,267,978

 
 
 
 
8,428,113

 
8,421,612

 
8,267,978

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

10



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
March 31, 2019
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
K-Mac Holdings Corp (0.6%)*(4)
 
Restaurants
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 03/25)
 
$
3,317,739

 
$
3,326,939

 
$
3,261,337

 
 
 
 
3,317,739

 
3,326,939

 
3,261,337

 
 
 
 
 
 
 
 
 
 
 
Kronos Inc. (1.9%)*(4)
 
Application Software
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.7% Cash, Due 11/23)
 
11,393,155

 
11,436,797

 
11,276,033

 
 
 
 
11,393,155

 
11,436,797

 
11,276,033

 
 
 
 
 
 
 
 
 
 
 
LAC Intermediate, LLC (f/k/a Lighthouse Autism Center) (1.0%)*(5) (6)
 
Healthcare and Pharmaceuticals
 
First Lien Senior Secured Term Loan (LIBOR + 5.75%, 8.6% Cash, Due 10/24)
 
6,141,976

 
5,886,573

 
5,676,926

 
 
Class A LLC Units (154,320 units)
 
 
 
154,320

 
129,635

 
 
 
 
6,141,976

 
6,040,893

 
5,806,561

 
 
 
 
 
 
 
 
 
 
 
Lindstrom, LLC (Metric Enterprises, Inc.) (1.2%)*(5) (6)
 
Capital Equipment
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 7.0% Cash, Due 09/24)
 
7,005,454

 
6,957,196

 
7,005,454

 
 
 
 
7,005,454

 
6,957,196

 
7,005,454

 
 
 
 
 
 
 
 
 
 
 
LTI Holdings, Inc. (2.0%)*(4)
 
Industrial Conglomerates
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 6.0% Cash, Due 09/25)
 
11,940,000

 
12,002,923

 
11,472,310

 
 
 
 
11,940,000

 
12,002,923

 
11,472,310

 
 
 
 
 
 
 
 
 
 
 
Mallinckrodt Plc (1.8%)*(3) (4) (5)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.4% Cash, Due 09/24)
 
11,338,011

 
11,269,725

 
10,523,148

 
 
 
 
11,338,011

 
11,269,725

 
10,523,148

 
 
 
 
 
 
 
 
 
 
 
Men's Wearhouse, Inc. (The) (1.6%)*(3) (4)
 
Apparel Retail
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 04/25)
 
9,949,749

 
10,044,337

 
9,502,010

 
 
 
 
9,949,749

 
10,044,337

 
9,502,010

 
 
 
 
 
 
 
Micro Holding Corp. (1.8%)*
 
Internet Software & Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.7% Cash, Due 12/24)(5)
 
2,706,042

 
2,718,461

 
2,651,921

 
 
First Lien Senior Secured Term Loan (LIBOR + 3.75%, 6.2% Cash, Due 09/24)(4)
 
7,939,547

 
7,995,058

 
7,820,533

 
 
 
 
10,645,589

 
10,713,519

 
10,472,454

 
 
 
 
 
 
 
 
 
 
 
Nautilus Power, LLC (0.6%)*(4)
 
Independent Power Producers & Energy Traders
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.7% Cash, Due 05/24)
 
3,363,889

 
3,379,920

 
3,361,366

 
 
 
 
3,363,889

 
3,379,920

 
3,361,366

 
 
 
 
 
 
 
 
 
 
 
NFP Corp. (1.4%)*(4)
 
Specialized Finance
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 5.5% Cash, Due 01/24)
 
8,608,113

 
8,606,366

 
8,285,308

 
 
 
 
8,608,113

 
8,606,366

 
8,285,308

 
 
 
 
 
 
 
 
 
 
 
NGS US Finco, LLC (f/k/a Dresser Natural Gas Solutions) (2.0%)*(5) (6)
 
Natural Gas
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 6.7% Cash, Due 10/25)
 
12,085,097

 
12,028,478

 
11,830,737

 
 
 
 
12,085,097

 
12,028,478

 
11,830,737

 
 
 
 
 
 
 
 
 
 
 
NVA Holdings, Inc. (1.3%)*(4)
 
Health Care Facilities
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 5.2% Cash, Due 02/25)
 
7,896,330

 
7,880,970

 
7,615,063

 
 
 
 
7,896,330

 
7,880,970

 
7,615,063