10-Q 1 a2020033110qbbdc.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, 2020
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
¨
Accelerated filer
ý
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 April 30, 2020 was 47,961,753.




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, 2020
 
December 31, 2019
 
(Unaudited)
 
 
Assets:
 
 
 
Investments at fair value:
 
 
 
Non-Control / Non-Affiliate investments (cost of $1,101,299,662 and $1,085,866,720 as of March 31, 2020 and December 31, 2019, respectively)
$
964,896,944

 
$
1,066,845,054

Affiliate investments (cost of $10,158,270 and $10,158,270 as of March 31, 2020 and December 31, 2019, respectively)
6,396,590

 
10,229,813

Short-term investments (cost of $100,459,806 and $96,568,940 as of March 31, 2020 and December 31, 2019, respectively)
100,459,806

 
96,568,940

Total investments at fair value
1,071,753,340

 
1,173,643,807

Cash
7,458,729

 
21,991,565

Interest and fees receivable
6,575,093

 
5,265,980

Prepaid expenses and other assets
1,984,055

 
1,112,559

Deferred financing fees
5,032,860

 
5,366,119

Receivable from unsettled transactions
4,138,890

 
45,254,808

Total assets
$
1,096,942,967

 
$
1,252,634,838

Liabilities:
 
 
 
Accounts payable and accrued liabilities
$
5,620,633

 
$
5,191,552

Interest payable
2,019,724

 
2,491,534

Payable from unsettled transactions
13,862,282

 
4,924,150

Borrowings under credit facilities
339,825,929

 
352,488,419

Debt securitization
289,869,491

 
316,664,474

Total liabilities
651,198,059

 
681,760,129

Commitments and contingencies (Note 7)
 
 
 
Net Assets:
 
 
 
Common stock, $0.001 par value per share (150,000,000 shares authorized, 48,288,822 and 48,950,803 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively)
48,289

 
48,951

Additional paid-in capital
848,982,942

 
853,766,370

Total distributable earnings (loss)
(403,286,323
)
 
(282,940,612
)
Total net assets
445,744,908

 
570,874,709

Total liabilities and net assets
$
1,096,942,967

 
$
1,252,634,838

Net asset value per share
$
9.23

 
$
11.66


See accompanying notes.


3



Barings BDC, Inc.
Unaudited Consolidated Statements of Operations
 
Three Months
Ended
 
Three Months
Ended
 
March 31,
2020
 
March 31,
2019
Investment income:
 
 
 
Interest income:
 
 
 
Non-Control / Non-Affiliate investments
$
17,396,411

 
$
17,861,319

Short-term investments
277,991

 
172,695

Total interest income
17,674,402

 
18,034,014

Fee and other income:
 
 
 
Non-Control / Non-Affiliate investments
960,993

 
301,057

Total fee and other income
960,993

 
301,057

Payment-in-kind interest income:
 
 
 
Non-Control / Non-Affiliate investments
43,572

 

Total payment-in-kind interest income
43,572

 

Interest income from cash
631

 
4,687

Total investment income
18,679,598

 
18,339,758

Operating expenses:
 
 
 
Interest and other financing fees
6,004,133

 
5,844,172

Base management fee (Note 2)
3,912,373

 
2,450,995

Compensation expenses
48,410

 
118,444

General and administrative expenses (Note 2)
1,400,614

 
1,968,860

Total operating expenses
11,365,530

 
10,382,471

Net investment income
7,314,068

 
7,957,287

Realized and unrealized gains (losses) on investments and foreign currency transactions:
 
 
 
Net realized losses:
 
 
 
Non-Control / Non-Affiliate investments
(157,978
)
 
(129,775
)
Net realized losses on investments
(157,978
)
 
(129,775
)
Foreign currency transactions
(144,394
)
 

Net realized losses
(302,372
)
 
(129,775
)
Net unrealized appreciation (depreciation):
 
 
 
Non-Control / Non-Affiliate investments
(117,361,056
)
 
25,397,188

Affiliate investments
(3,833,223
)
 

Net unrealized appreciation (depreciation) on investments
(121,194,279
)
 
25,397,188

Foreign currency transactions
1,798,226

 

Net unrealized appreciation (depreciation)
(119,396,053
)
 
25,397,188

Net realized losses and unrealized appreciation (depreciation) on investments and foreign currency transactions
(119,698,425
)
 
25,267,413

Loss on extinguishment of debt
(137,390
)
 
(44,395
)
Provision for taxes

 
(17,992
)
Net increase (decrease) in net assets resulting from operations
$
(112,521,747
)
 
$
33,162,313

Net investment income per share—basic and diluted
$
0.15

 
$
0.16

Net increase (decrease) in net assets resulting from operations per share—basic and diluted
$
(2.30
)
 
$
0.65

Dividends/distributions per share:
 
 
 
Total dividends/distributions per share
$
0.16

 
$
0.12

Weighted average shares outstanding—basic and diluted
48,887,393

 
51,157,646

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, 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 transactions

 

 

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

 

 

 
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


 
Common Stock
 
Additional
Paid-In
Capital
 
Total Distributable Earnings (Loss)
 
Total
Net
Assets
 
Number
of Shares
 
Par
Value
 
 
 
Balance, December 31, 2019
48,950,803

 
$
48,951

 
$
853,766,370

 
$
(282,940,612
)
 
$
570,874,709

Net investment income

 

 

 
7,314,068

 
7,314,068

Net realized loss on investments / foreign currency transactions

 

 

 
(302,372
)
 
(302,372
)
Net unrealized depreciation of investments / foreign currency transactions

 

 

 
(119,396,053
)
 
(119,396,053
)
Loss on extinguishment of debt

 

 

 
(137,390
)
 
(137,390
)
Dividends / distributions

 

 

 
(7,823,964
)
 
(7,823,964
)
Purchases of shares in repurchase plan
(661,981
)
 
(662
)
 
(4,783,428
)
 

 
(4,784,090
)
Balance, March 31, 2020
48,288,822

 
$
48,289

 
$
848,982,942

 
$
(403,286,323
)
 
$
445,744,908


See accompanying notes.


5



Barings BDC, Inc.
Unaudited Consolidated Statements of Cash Flows 
 
Three Months Ended
 
Three Months Ended
 
March 31, 2020
 
March 31, 2019
Cash flows from operating activities:
 
 
 
Net increase (decrease) in net assets resulting from operations
$
(112,521,747
)
 
$
33,162,313

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
(123,200,667
)
 
(93,255,027
)
Repayments received / sales of portfolio investments
155,852,583

 
58,368,472

Purchases of short-term investments
(221,916,363
)
 
(174,926,000
)
Sales of short-term investments
218,025,496

 
157,735,568

Loan origination and other fees received
2,704,423

 
987,006

Net realized loss on investments
157,978

 
129,775

Net realized gain on foreign currency transactions
144,394

 

Net unrealized (appreciation) depreciation of investments
121,194,279

 
(25,397,188
)
Net unrealized appreciation of foreign currency transactions
(1,798,226
)
 

Payment-in-kind interest accrued, net of payments received
(43,572
)
 

Amortization of deferred financing fees
375,257

 
180,746

Loss on extinguishment of debt
137,390

 
44,395

Accretion of loan origination and other fees
(658,005
)
 
(224,397
)
Amortization / accretion of purchased loan premium/discount
(188,402
)
 
(58,115
)
Changes in operating assets and liabilities:
 
 
 
Interest and fees receivables
(1,483,011
)
 
760,970

Prepaid expenses and other assets
(798,647
)
 
1,238,741

Accounts payable and accrued liabilities
452,640

 
712,245

Interest payable
(471,825
)
 
(415,364
)
Net cash provided by (used in) operating activities
35,963,975

 
(40,955,860
)
Cash flows from financing activities:
 
 
 
Borrowings under credit facilities
58,085,614

 
85,000,000

Repayments of credit facilities
(69,000,000
)
 
(35,000,000
)
Repayment of debt securitization
(26,974,371
)
 

Financing fees paid

 
(6,446,227
)
Purchases of shares in repurchase plan
(4,784,090
)
 
(5,861,497
)
Cash dividends / distributions paid
(7,823,964
)
 
(6,106,789
)
Net cash provided by (used in) financing activities
(50,496,811
)
 
31,585,487

Net decrease in cash
(14,532,836
)
 
(9,370,373
)
Cash, beginning of period
21,991,565

 
12,426,982

Cash, end of period
$
7,458,729

 
$
3,056,609

Supplemental disclosure of cash flow information:
 
 
 
Cash paid for interest
$
5,407,506

 
$
5,589,938

See accompanying notes.

6



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments
March 31, 2020
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
Non–Control / Non–Affiliate Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1WorldSync, Inc. (4.7%)*(5) (7)
 
IT Consulting & Other Services
 
First Lien Senior Secured Term Loan (LIBOR + 7.25%, 8.9% Cash, Acquired 07/19, Due 07/25)
 
$
21,526,442

 
$
21,136,934

 
$
20,328,720

 
 
First Lien Senior Secured Term Loan (LIBOR + 7.25%, 9.1% Cash, Acquired 07/19, Due 07/25)
 
861,058

 
845,559

 
813,149

 
 
 
 
22,387,500

 
21,982,493

 
21,141,869

 
 
 
 
 
 
 
 
 
 
 
24 Hour Fitness Worldwide, Inc. (0.2%)*(4) (6)
 
Leisure Facilities
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.0% Cash, Acquired 08/18, Due 05/25)
 
4,600,734

 
4,639,316

 
950,834

 
 
 
 
4,600,734

 
4,639,316

 
950,834

 
 
 
 
 
 
 
 
 
 
 
Accelerate Learning, Inc. (1.5%)*(5) (7)
 
Education Services
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.6% Cash, Acquired 12/18, Due 12/24)
 
7,567,965

 
7,443,961

 
6,876,195

 
 
 
 
7,567,965

 
7,443,961

 
6,876,195

 
 
 
 
 
 
 
 
 
 
 
Accurus Aerospace Corporation (4.7%)*(5) (7)
 
Aerospace & Defense
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.9% Cash, Acquired 10/18, Due 10/24)
 
24,687,500

 
24,394,140

 
21,078,219

 
 
 
 
24,687,500

 
24,394,140

 
21,078,219

 
 
 
 
 
 
 
 
 
 
 
Acrisure, LLC (0.4%)*(5)
 
Property & Casualty Insurance
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 5.2% Cash, Acquired 03/20, Due 01/27)
 
2,000,000

 
1,705,897

 
1,760,000

 
 
 
 
2,000,000

 
1,705,897

 
1,760,000

 
 
 
 
 
 
 
 
 
 
 
ADE Holding (1.6%)*(3) (5) (7)
 
Education Services
 
First Lien Senior Secured Term Loan (EURIBOR + 5.0%, 5.0% Cash, Acquired 01/20, Due 01/27)
 
8,119,653

 
7,877,923

 
7,195,172

 
 
 
 
8,119,653

 
7,877,923

 
7,195,172

 
 
 
 
 
 
 
 
 
 
 
ADMI Corp. (0.6%)*(6)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.2% Cash, Acquired 08/18, Due 04/25)
 
3,439,232

 
3,449,519

 
2,813,292

 
 
 
 
3,439,232

 
3,449,519

 
2,813,292

 
 
 
 
 
 
 
 
 
 
 
Aftermath Bidco Corporation (2.6%)*(5) (7)
 
Professional Services
 
First Lien Senior Secured Term Loan (LIBOR + 5.75%, 7.6% Cash, Acquired 04/19, Due 04/25)
 
12,228,228

 
11,989,939

 
11,538,341

 
 
 
 
12,228,228

 
11,989,939

 
11,538,341

 
 
 
 
 
 
 
 
 
 
 
AlixPartners LLP (1.1%)*(6)
 
Investment Banking & Brokerage
 
First Lien Senior Secured Term Loan (LIBOR + 2.5%, 3.5% Cash, Acquired 09/18, Due 04/24)
 
4,948,980

 
4,966,795

 
4,713,903

 
 
 
 
4,948,980

 
4,966,795

 
4,713,903

 
 
 
 
 
 
 
 
 
 
 
Alliant Holdings LP (1.0%)*(6)
 
Property & Casualty Insurance
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.0% Cash, Acquired 09/18, Due 05/25)
 
4,910,038

 
4,916,565

 
4,448,494

 
 
 
 
4,910,038

 
4,916,565

 
4,448,494

 
 
 
 
 
 
 
 
 
 
 
Altice USA, Inc. (0.5%)*(3) 5)
 
Cable & Satellite
 
First Lien Senior Secured Term Loan (LIBOR + 2.25%, 2.9% Cash, Acquired 09/18, Due 01/26)
 
2,500,000

 
2,200,984

 
2,387,500

 
 
 
 
2,500,000

 
2,200,984

 
2,387,500

 
 
 
 
 
 
 
 
 
 
 
American Dental Partners, Inc. (2.0%)*(5) (7)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.6% Cash, Acquired 11/18, Due 03/23)
 
9,875,000

 
9,857,356

 
8,864,450

 
 
 
 
9,875,000

 
9,857,356

 
8,864,450

 
 
 
 
 
 
 
 
 
 
 
American Scaffold, Inc. (2.1%)*(5) (7)
 
Aerospace & Defense
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.9% Cash, Acquired 09/19, Due 09/25)
 
9,760,320

 
9,557,753

 
9,192,823

 
 
 
9,760,320

 
9,557,753

 
9,192,823

 
 
 
 
 
 
 
 
 
 
 
Anchorage Capital CLO Ltd: Series 2013-1A (0.3%)*(3) (5)
 
Structured Finance
 
Structured Secured Note - Class DR (LIBOR + 6.80%, 8.6% Cash, Acquired 03/20, Due 10/30)
 
2,000,000

 
1,731,301

 
1,161,024

 
 
 
 
2,000,000

 
1,731,301

 
1,161,024

 
 
 
 
 
 
 
 
 
 
 
Anju Software, Inc. (2.8%)*(5) (7)
 
Application Software
 
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 7.0% Cash, Acquired 02/19, Due 02/25)
 
13,785,391

 
13,484,333

 
12,619,606

 
 
 
 
13,785,391

 
13,484,333

 
12,619,606

 
 
 
 
 
 
 
 
 
 
 
Apex Bidco Limited (1.2%)*(3) (5) (7)
 
Business Equipment & Services
 
First Lien Senior Secured Term Loan (GBP LIBOR + 6.50%, 7.2% Cash, Acquired 01/20, Due 01/27)
 
5,200,232

 
5,340,436

 
4,843,543

 
 
Subordinated Senior Unsecured Term Loan (8.0% PIK, Acquired 01/20, Due 07/27)
 
624,027

 
640,912

 
581,882

 
 
 
 
5,824,259

 
5,981,348

 
5,425,425

 
 
 
 
 
 
 
 
 
 
 
Apex Tool Group, LLC (1.2%)*(4) (6)
 
Industrial Machinery
 
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.8% Cash, Acquired 08/18, Due 08/24)
 
7,100,211

 
6,975,856

 
5,428,679

 
 
 
7,100,211

 
6,975,856

 
5,428,679

 
 
 
 
 
 
 
 
 
 
 

7



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
March 31, 2020
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
Apollo Aviation: Series 2018-2 (0.1%)*(5)
 
Structured Finance
 
Structured Secured Note - Class A (4.5% Cash, Acquired 03/20, Due 11/38)
 
$
438,449

 
$
396,842

 
$
348,142

 
 
 
 
438,449

 
396,842

 
348,142

 
 
 
 
 
 
 
 
 
 
 
Applied Systems Inc. (1.0%)*(6)
 
Application Software
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.2% Cash, Acquired 09/19, Due 09/24)
 
4,950,631

 
4,979,410

 
4,546,313

 
 
 
 
4,950,631

 
4,979,410

 
4,546,313

 
 
 
 
 
 
 
 
 
 
 
AQA Acquisition Holding, Inc. (f/k/a SmartBear) (1.1%)*(5) (7)
 
High Tech Industries
 
Second Lien Senior Secured Term Loan (LIBOR + 8.0%, 9.9% Cash, Acquired 10/18, Due 05/24)
 
4,959,088

 
4,862,667

 
4,729,482

 
 
 
 
4,959,088

 
4,862,667

 
4,729,482

 
 
 
 
 
 
 
 
 
 
 
Arch Global Precision LLC (2.4%)*(5) (7)
 
Industrial Machinery
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 04/19, Due 04/26)
 
11,617,064

 
11,391,746

 
10,574,134

 
 
 
 
11,617,064

 
11,391,746

 
10,574,134

 
 
 
 
 
 
 
 
 
 
 
Armstrong Transport Group (Pele Buyer, LLC ) (1.0%)*(5) (7)
 
Air Freight & Logistics
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.7% Cash, Acquired 06/19, Due 06/24)
 
4,667,670

 
4,575,187

 
4,363,613

 
 
 
 
4,667,670

 
4,575,187

 
4,363,613

 
 
 
 
 
 
 
 
 
 
 
Ascend Learning, LLC (1.0%)*(6)
 
IT Consulting & Other Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.0% Cash, Acquired 09/18, Due 07/24)
 
4,949,239

 
4,957,965

 
4,386,263

 
 
 
4,949,239

 
4,957,965

 
4,386,263

 
 
 
 
 
 
 
 
 
 
 
Ascensus Specialties, LLC
(1.5%)*(5) (7)
 
Specialty Chemicals
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.3% Cash, Acquired 09/19, Due 09/26)
 
7,072,578

 
7,005,966

 
6,745,137

 
 
 
 
7,072,578

 
7,005,966

 
6,745,137

 
 
 
 
 
 
 
 
 
 
 
ASPEQ Heating Group LLC (1.9%)*(5) (7)
 
Building Products, Air and Heating
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 11/19, Due 11/25)
 
9,012,748

 
8,884,960

 
8,563,426

 
 
 
 
9,012,748

 
8,884,960

 
8,563,426

 
 
 
 
 
 
 
 
 
 
 
Auxi International (0.3%)*(3) (5) (7)
 
Commercial Finance
 
First Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 12/19, Due 12/26)
 
1,536,151

 
1,510,882

 
1,434,617

 
 
 
 
1,536,151

 
1,510,882

 
1,434,617

 
 
 
 
 
 
 
 
 
 
 
Avantor, Inc. (0.3%)*(3) (6)
 
Health Care Equipment
 
First Lien Senior Secured Term Loan (LIBOR + 2.25%, 3.3% Cash, Acquired 08/18, Due 11/24)
 
1,473,324

 
1,489,912

 
1,384,925

 
 
 
 
1,473,324

 
1,489,912

 
1,384,925

 
 
 
 
 
 
 
 
 
 
 
Aveanna Healthcare Holdings, Inc. (0.9%)*(6)
 
Health Care Facilities
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.3% Cash, Acquired 10/18, Due 03/24)
 
1,469,772

 
1,454,776

 
1,102,329

 
 
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 10/18, Due 03/24)
 
3,520,857

 
3,521,688

 
2,834,290

 
 
 
 
4,990,629

 
4,976,464

 
3,936,619

 
 
 
 
 
 
 
 
 
 
 
AVSC Holding Corp. (0.7%)*(4) (5) (6)
 
Advertising
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.9% Cash, Acquired 08/18, Due 03/25)
 
4,929,647

 
4,906,293

 
3,081,030

 
 
 
 
4,929,647

 
4,906,293

 
3,081,030

 
 
 
 
 
 
 
 
 
 
 
Bass Pro Group, LLC(0.4%)*(5)
 
General Merchandise Stores
 
First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 03/20, Due 09/24)
 
1,994,885

 
1,776,865

 
1,665,729

 
 
 
 
1,994,885

 
1,776,865

 
1,665,729

 
 
 
 
 
 
 
 
 
 
 
Bausch Health Companies Inc. (0.9%)*(3) (6)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 3.6% Cash, Acquired 08/18, Due 05/25)
 
4,459,459

 
4,477,179

 
4,219,764

 
 
 
 
4,459,459

 
4,477,179

 
4,219,764

 
 
 
 
 
 
 
 
 
 
 
BDP International, Inc. (f/k/a BDP Buyer, LLC) (5.2%)*(5) (7)
 
Air Freight & Logistics
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.2% Cash, Acquired 12/18, Due 12/24)
 
24,687,500

 
24,282,829

 
22,967,101

 
 
 
 
24,687,500

 
24,282,829

 
22,967,101

 
 
 
 
 
 
 
 
 
 
 
Beacon Pointe Advisors, LLC (0.1%)*(5)
 
Asset Manager & Custody Bank
 
First Lien Senior Secured Term Loan (Prime + 4.0%, 7.3% Cash, Acquired 03/20, Due 03/26)
 
636,364

 
613,868

 
613,864

 
 
 
 
636,364

 
613,868

 
613,864

 
 
 
 
 
 
 
 
 
 
 
Benify (Bennevis AB) (0.3%)*(3) (5) (7)
 
High Tech Industries
 
First Lien Senior Secured Term Loan (STIBOR + 5.75%, 6.1% Cash, Acquired 07/19, Due 07/26)
 
1,317,114

 
1,364,563

 
1,245,171

 
 
 
 
1,317,114

 
1,364,563

 
1,245,171

 
 
 
 
 
 
 
 
 
 
 
Berlin Packaging LLC (1.0%)*(6)
 
Forest Products /Containers
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.6% Cash, Acquired 08/18, Due 11/25)
 
4,949,622

 
4,959,673

 
4,293,797

 
 
 
 
4,949,622

 
4,959,673

 
4,293,797


8



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
March 31, 2020
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
 
 
 
 
 
 
 
 
 
 
 
Blackhawk Network Holdings Inc. (0.9%)*(6)
 
Data Processing & Outsourced Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.0% Cash, Acquired 11/18, Due 06/25)
 
$
4,949,622

 
$
4,949,622

 
$
3,995,038

 
 
 
 
4,949,622

 
4,949,622

 
3,995,038

 
 
 
 
 
 
 
 
 
 
 
Boxer Parent Company Inc. (0.4%)*(5)
 
Software/Services
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.2% Cash, Acquired 03/20, Due 10/25)
 
1,994,950

 
1,795,455

 
1,646,332

 
 
 
 
1,994,950

 
1,795,455

 
1,646,332

 
 
 
 
 
 
 
 
 
 
 
Brown Machine Group Holdings, LLC (1.1%)*(5) (7)
 
Industrial Equipment
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.7% Cash, Acquired 10/18, Due 10/24)
 
5,286,022

 
5,234,256

 
4,828,048

 
 
 
 
5,286,022

 
5,234,256

 
4,828,048

 
 
 
 
 
 
 
 
 
 
 
Cadent, LLC (f/k/a Cross MediaWorks) (1.7%)*(5) (7)
 
Media & Entertainment
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.7% Cash, Acquired 09/18, Due 09/23)
 
7,866,556

 
7,811,570

 
7,458,014

 
 
 
 
7,866,556

 
7,811,570

 
7,458,014

 
 
 
 
 
 
 
 
 
 
 
Carlyle Aviation Partners Ltd.: Series 2019-2 (0.2%)*(5)
 
Structured Finance
 
Structured Secured Note - Class A (3.4% Cash, Acquired 3/20, Due 10/39)
 
964,351

 
872,844

 
728,880

 
 
 
 
964,351

 
872,844

 
728,880

 
 
 
 
 
 
 
 
 
 
 
Classic Collision (Summit Buyer, LLC) (0.7%)*(5) (7)
 
Auto Collision Repair Centers
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, Acquired 01/20, Due 01/26)
 
3,931,284

 
3,627,325

 
3,030,934

 
 
 
 
3,931,284

 
3,627,325

 
3,030,934

 
 
 
 
 
 
 
 
 
 
 
CM Acquisitions Holdings Inc. (4.3%)*(5) (7)
 
Internet & Direct Marketing

 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, Acquired 05/19, Due 05/25)
 
20,486,082

 
20,151,519

 
19,271,009

 
 
 
 
20,486,082

 
20,151,519

 
19,271,009

 
 
 
 
 
 
 
 
 
 
 
CMT Opco Holding, LLC (1.3%)*(5) (7)
 
Distributors
 
First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.8% Cash, Acquired 01/20, Due 01/25)
 
5,464,405

 
5,358,220

 
5,152,533

 
 
LLC Units (37,453 units, Acquired 01/20)
 
 
 
403,774

 
403,885

 
 
 
 
5,464,405

 
5,761,994

 
5,556,418

 
 
 
 
 
 
 
 
 
 
 
Confie Seguros Holding II Co. (0.4%)*(5)
 
Insurance Brokerage Services
 
Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 10.1% Cash, Acquired 10/19, Due 11/25)
 
2,500,000

 
2,355,262

 
1,720,825

 
 
 
 
2,500,000

 
2,355,262

 
1,720,825

 
 
 
 
 
 
 
 
 
 
 
Contabo Finco S.À R.L (0.3%)*(3) (5) (7)
 
Internet Software and Services
 
First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 10/19, Due 10/26)
 
1,279,093

 
1,254,101

 
1,176,476

 
 
 
 
1,279,093

 
1,254,101

 
1,176,476

 
 
 
 
 
 
 
 
 
 
 
Container Store Group, Inc., (The) (0.5%)*(6) (7)
 
Retail
 
First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 09/18, Due 09/23)
 
2,909,422

 
2,911,419

 
2,211,161

 
 
 
 
2,909,422

 
2,911,419

 
2,211,161

 
 
 
 
 
 
 
 
 
 
 
Core & Main LP (0.8%)*(6)
 
Building Products
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.3% Cash, Acquired 09/18, Due 08/24)
 
3,969,543

 
3,984,703

 
3,483,274

 
 
 
 
3,969,543

 
3,984,703

 
3,483,274

 
 
 
 
 
 
 
 
 
 
 
CPI International Inc. (0.9%)*(6)
 
Electronic Components
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 4.5% Cash, Acquired 08/18, Due 07/24)
 
4,734,929

 
4,741,311

 
3,866,874

 
 
 
 
4,734,929

 
4,741,311

 
3,866,874

 
 
 
 
 
 
 
 
 
 
 
Dart Buyer, Inc. (2.5%)*(3) (5) (7)
 
Aerospace & Defense
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 04/19, Due 04/25)
 
12,404,514

 
12,151,274

 
11,359,778

 
 
 
 
12,404,514

 
12,151,274

 
11,359,778

 
 
 
 
 
 
 
 
 
 
 
Davis Vision Incorporation (0.7%)*(6)
 
Managed Health Care
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.5% Cash, Acquired 08/18, Due 12/24)
 
3,959,494

 
3,957,694

 
3,322,015

 
 
 
 
3,959,494

 
3,957,694

 
3,322,015

 
 
 
 
 
 
 
 
 
 
 
Diamond Sports Group, LLC (0.2%)* (5) (7)
 
Broadcasting
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.2% Cash, Acquired 03/20, Due 07/26)
 
997,494

 
778,045

 
768,070

 
 
 
 
997,494

 
778,045

 
768,070

 
 
 
 
 
 
 
 
 
 
 
Dimora Brands, Inc. (0.5%)*(6)
 
Building Products
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 4.6% Cash, Acquired 08/18, Due 08/24)
 
2,941,442

 
2,944,231

 
2,316,385

 
 
 
 
2,941,442

 
2,944,231

 
2,316,385

 
 
 
 
 
 
 
 
 
 
 
Distinct Holdings, Inc. (1.6%)*(5) (7)
 
Systems Software
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.2% Cash, Acquired 04/19, Due 12/23)
 
7,573,737

 
7,495,759

 
7,215,115

 
 
 
 
7,573,737

 
7,495,759

 
7,215,115

 
 
 
 
 
 
 
 
 
 
 

9



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
March 31, 2020
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
DreamStart Bidco SAS (2.1%)*(3) (5) (7)
 
Diversified Financial Services
 
First Lien Senior Secured Term Loan (EURIBOR + 4.5%, 4.5% Cash, 1.8% PIK, Acquired 03/20, Due 03/27)
 
$
9,642,912

 
$
9,333,109

 
$
9,289,395

 
 
 
 
9,642,912

 
9,333,109

 
9,289,395

 
 
 
 
 
 
 
 
 
 
 
Duff & Phelps Corporation (0.9%)*(4) (6)
 
Research & Consulting Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.3% Cash, Acquired 09/18, Due 02/25)
 
3,959,596

 
3,966,332

 
3,880,404

 
 
 
 
3,959,596

 
3,966,332

 
3,880,404

 
 
 
 
 
 
 
 
 
 
 
Edelman Financial Center, LLC, The (0.9%)*(6)
 
Investment Banking & Brokerage
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.2% Cash, Acquired 09/18, Due 07/25)
 
4,949,875

 
4,985,042

 
4,170,269

 
 
 
 
4,949,875

 
4,985,042

 
4,170,269

 
 
 
 
 
 
 
 
 
 
 
Elmwood CLO: Series 2019-1A (0.4%)*(3) (5)
 
Structured Finance
 
Structured Secured Note - Class E (LIBOR + 7.10%, 8.9% Cash, Acquired 03/20, Due 04/30)
 
3,000,000

 
2,674,494

 
1,917,546

 
 
 
 
3,000,000

 
2,674,494

 
1,917,546

 
 
 
 
 
 
 
 
 
 
 
Endo International PLC (1.6%)*(3) (4) (6)
 
Pharmaceuticals
 
First Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.3% Cash, Acquired 09/18, Due 04/24)
 
7,858,586

 
7,915,930

 
7,013,788

 
 
 
 
7,858,586

 
7,915,930

 
7,013,788

 
 
 
 
 
 
 
 
 
 
 
Envision Healthcare Corp. (0.2%)* (5)
 
Health Care Services
 
First Lien Senior Secured Term Loan (LIBOR + 3.75%, 4.7% Cash, Acquired 03/20, Due 10/25)
 
1,994,950

 
1,566,035

 
1,007,449

 
 
 
 
1,994,950

 
1,566,035

 
1,007,449

 
 
 
 
 
 
 
 
 
 
 
Exeter Property Group, LLC (2.7%)*(5) (7)
 
Real Estate
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.1% Cash, Acquired 02/19, Due 08/24)
 
12,406,250

 
12,253,600

 
12,098,913

 
 
 
 
12,406,250

 
12,253,600

 
12,098,913

 
 
 
 
 
 
 
 
 
 
 
ExGen Renewables IV, LLC (0.6%)*(3) (6)
 
Electric Utilities
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.6% Cash, Acquired 09/18, Due 11/24)
 
2,865,257

 
2,887,504

 
2,564,405

 
 
 
 
2,865,257

 
2,887,504

 
2,564,405

 
 
 
 
 
 
 
 
 
 
 
Eyemart Express (0.7%)*(6)
 
Retail
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.0% Cash, Acquired 08/18, Due 08/24)
 
3,434,603

 
3,443,946

 
3,159,835

 
 
 
 
3,434,603

 
3,443,946

 
3,159,835

 
 
 
 
 
 
 
 
 
 
 
Fieldwood Energy LLC (0.7%)*(4) (5) (6)
 
Oil & Gas Equipment & Services
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 7.0% Cash, Acquired 08/18, Due 04/22)
 
10,000,000

 
10,058,503

 
3,125,000

 
 
 
 
10,000,000

 
10,058,503

 
3,125,000

 
 
 
 
 
 
 
 
 
 
 
Filtration Group Corporation (0.9%)*(6)
 
Industrial Machinery
 
First Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.0% Cash, Acquired 09/18, Due 03/25)
 
4,761,604

 
4,790,220

 
4,112,836

 
 
 
 
4,761,604

 
4,790,220

 
4,112,836

 
 
 
 
 
 
 
 
 
 
 
Flex Acquisition Holdings, Inc. (2.0%)*(4) (5) (6) (7)
 
Paper Packaging
 
First Lien Senior Secured Term Loan (LIBOR + 3.25%, 5.2% Cash, Acquired 08/18, Due 06/25)
 
9,782,731

 
9,799,467

 
8,853,371

 
 
 
 
9,782,731

 
9,799,467

 
8,853,371

 
 
 
 
 
 
 
 
 
 
 
Frazer Consultants, LLC (d/b/a Tribute Technology) (1.4%)*(5) (7)
 
Software Services
 
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.0% Cash, Acquired 11/19, Due 08/23)
 
6,723,572

 
6,661,280

 
6,418,197

 
 
 
 
6,723,572

 
6,661,280

 
6,418,197

 
 
 
 
 
 
 
 
 
 
 
GoldenTree Loan Opportunities IX, Limited: Series 2014-9A (0.2%)*(3) (5)
 
Structured Finance
 
Structured Secured Note - Class DR2 (LIBOR + 3.0%, 4.8% Cash, Acquired 03/20, Due 10/29)
 
1,250,000

 
891,523

 
968,186

 
 
 
 
1,250,000

 
891,523

 
968,186

 
 
 
 
 
 
 
 
 
 
 
Graftech International Ltd. (1.7%)*(3) (4) (6) (7)
 
Specialty Chemicals
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 4.5% Cash, Acquired 08/18, Due 02/25)
 
9,013,889

 
9,078,586

 
7,751,944

 
 
 
 
9,013,889

 
9,078,586

 
7,751,944

 
 
 
 
 
 
 
 
 
 
 
Gulf Finance, LLC (0.1%)*(4)
 
Oil & Gas Exploration & Production
 
First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.8% Cash, Acquired 10/18, Due 08/23)
 
1,056,310

 
926,479

 
527,099

 
 
 
 
1,056,310

 
926,479

 
527,099

 
 
 
 
 
 
 
 
 
 
 
Harbor Freight Tools USA Inc.(1.2%)*(6)
 
Specialty Stores
 
First Lien Senior Secured Term Loan (LIBOR + 2.5%, 3.5% Cash, Acquired 08/18, Due 08/23)
 
5,964,408

 
5,919,128

 
5,391,825

 
 
 
 
5,964,408

 
5,919,128

 
5,391,825

 
 
 
 
 
 
 
 
 
 
 
Hayward Industries, Inc. (1.4%)*(4) (6)
 
Leisure Products
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 4.5% Cash, Acquired 08/18, Due 08/24)
 
8,191,992

 
8,216,306

 
6,420,474

 
 
 
 
8,191,992

 
8,216,306

 
6,420,474

 
 
 
 
 
 
 
 
 
 
 

10



Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
March 31, 2020
Portfolio Company
 
Industry
 
Type of Investment(1) (2)
 
Principal
Amount
 
Cost
 
Fair
Value
Heartland, LLC (1.1%)*(5) (7)
 
Commercial Services & Supplies
 
First Lien Senior Secured Term Loan (LIBOR + 4.75%, 6.2% Cash, Acquired 08/19, Due 08/25)
 
$
5,490,270

 
$
5,299,385

 
$
4,734,877

 
 
 
 
5,490,270

 
5,299,385

 
4,734,877

 
 
 
 
 
 
 
 
 
 
 
Heilbron (f/k/a Sucsez (Bolt Bidco B.V.)) (1.6%)*(3) (5) (7)
 
Insurance
 
First Lien Senior Secured Term Loan (EURIBOR + 5.0%, 5.0% Cash, Acquired 09/19, Due 09/26)
 
7,753,965

 
7,611,566

 
7,153,509

 
 
 
 
7,753,965

 
7,611,566

 
7,153,509

 
 
 
 
 
 
 
 
 
 
 
Hertz Corporation (The) (0.9%)*(3) (6)
 
Rental & Leasing Services
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 3.7% Cash, Acquired 09/18, Due 06/23)
 
5,784,062

 
5,776,437

 
4,063,303

 
 
 
 
5,784,062

 
5,776,437

 
4,063,303

 
 
 
 
 
 
 
 
 
 
 
Highbridge Loan Management Ltd: Series 2014A-19 (0.1%)*(3) (5)
 
Structured Finance
 
Structured Secured Note - Class E (LIBOR + 6.75%, 8.5% Cash, Acquired 03/20, Due 07/30)
 
1,000,000

 
832,862

 
616,196

 
 
 
 
1,000,000

 
832,862

 
616,196

 
 
 
 
 
 
 
 
 
 
 
Holley Performance Products (Holley Purchaser, Inc.) (4.5%)*(5) (7)
 
Packaging
 
First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.8% Cash, Acquired 10/18, Due 10/25)
 
22,253,313

 
21,975,345

 
20,267,955

 
 
 
 
22,253,313

 
21,975,345

 
20,267,955

 
 
 
 
 
 
 
 
 
 
 
Hub International Limited (1.0%)*(6)
 
Property & Casualty Insurance
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 4.5% Cash, Acquired 08/18, Due 04/25)
 
4,950,193

 
4,954,624

 
4,598,729

 
 
 
 
4,950,193

 
4,954,624

 
4,598,729

 
 
 
 
 
 
 
 
 
 
 
HW Holdco, LLC (1.6%)*(5) (7)
 
Advertising
 
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 7.3% Cash, Acquired 12/18, Due 12/24)
 
7,565,524

 
7,411,114

 
7,270,764

 
 
 
 
7,565,524

 
7,411,114

 
7,270,764

 
 
 
 
 
 
 
 
 
 
 
Hyland Software Inc. (1.0%)*(6)
 
Technology Distributors
 
First Lien Senior Secured Term Loan (LIBOR + 3.5%, 4.5% Cash, Acquired 09/18, Due 07/24)
 
4,949,749

 
4,987,034

 
4,578,518

 
 
 
 
4,949,749

 
4,987,034

 
4,578,518

 
 
 
 
 
 
 
 
 
 
 
Hyperion Materials & Technologies, Inc. (3.0%)*(5) (7)
 
Industrial Machinery
 
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 7.3% Cash, Acquired 08/19, Due 08/26)
 
13,960,764

 
13,724,102

 
13,318,242

 
 
 
 
13,960,764

 
13,724,102

 
13,318,242

 
 
 
 
 
 
 
 
 
 
 
IM Analytics Holding, LLC (d/b/a NVT) (1.6%)*(5) (7)
 
Electronic Instruments & Components
 
First Lien Senior Secured Term Loan (LIBOR + 6.5%, 7.8% Cash, Acquired 11/19, Due 11/23)
 
8,271,382

 
8,195,576

 
7,012,144

 
 
Warrant (68,950 units, Acquired 11/19)
 
 
 

 

 
 
 
 
8,271,382

 
8,195,576

 
7,012,144

 
 
 
 
 
 
 
 
 
 
 
Immucor Inc. (0.5%)*(4)
 
Healthcare
 
First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.5% Cash, Acquired 09/18, Due 06/21)
 
2,459,738

 
2,476,473

 
2,103,076

 
 
 
 
2,459,738

 
2,476,473

 
2,103,076

 
 
 
 
 
 
 
 
 
 
 
Infor Software Parent, LLC (1.1%)*(6)
 
Systems Software
 
First Lien Senior Secured Term Loan (LIBOR + 2.75%, 3.8% Cash, Acquired 08/18, Due 02/22)
 
4,957,297

 
4,962,868

 
4,751,569

 
 
 
 
4,957,297

 
4,962,868

 
4,751,569

 
 
 
 
 
 
 
 
 
 
 
Institutional Shareholder Services, Inc. (1.0%)*(5) (7)
 
Diversified Support Services
 
Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 9.6% Cash, Acquired 03/19, Due 03/27)
 
4,951,685

 
4,819,565