Barings Bdc, Inc. · NYSE:BBDC
Barings Bdc — Q1 2025 Earnings Presentation
25 slides from Barings Bdc's earnings presentation, May 9, 2025
Slide 1: Barings BDC, Inc. First Quarter 2025 Earnings Presentation
MAY 8, 2025 Barings BDC, Inc. First Quarter 2025 Earnings Presentation
Slide 2: Important Information & Cautionary Notice Regarding Forward-Looking Statements
Important Information & Cautionary Notice Regarding Forward-Looking Statements Cautionary Notice: Certain statements contained in this presentation are "forward-looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on
Slide 3: Agenda
Agenda 1Q 2025 HIGHLIGHTS (LLOYD) ERIC LLOYD Summary points of the quarter. MATTHEW FREUND BARINGS BDC MARKET UPDATE & INVESTMENT PORTFOLIO (FREUND & HIGH) BRYAN HIGH Update on the portfolio performance. ELIZABETH MURRAY BARINGS BDC FINANCIALS (MURRAY) A walk through the balance sheet, income statem
Slide 4: Who We Are
BARINGS OVERVIEW Barings is a global asset management firm that works with institutional, insurance and intermediary clients to provide excess returns across public and private markets in fixed Who We Are income, real assets and capital solutions. External AUM by Region1 EMEA 26% Americas 47% Asia P
Slide 5: Barings BDC Franchise
Sponsor Backed Investments Barings BDC Franchise What is it? Financing the Typical Terms operating companies of issuers • <50% Loan to Value Owned by Private Equity • Maintenance Covenants firms • EBITDA between $15 and Private credit expertise delivering $75 million comprehensive exposure to the As
Slide 6: First Quarter 2025 Highlights
First Quarter 2025 Highlights Net asset value (NAV) Total originations during the as of March 31, 2025, quarter were $207 million, NET ASSET was $11.29 per share as ORIGINATIONS while sales and repayments VALUE compared to $11.29 per totaled $106 million, for net share as of originations of $101 mil
Slide 7: Selected Financial Highlights
Selected Financial Highlights Balance Sheet Highlights 1Q 2025 4Q 2024 3Q 2024 2Q 2024 1Q 2024 Investment Portfolio, at Fair Value $2,571.2 $2,449.3 $2,416.7 $2,395.7 $2,527.5 Total Debt Outstanding (Principal) $1,522.3 $1,463.6 $1,372.8 $1,375.8 $1,465.4 Total Net Assets (Equity) $1,188.8 $1,190.4
Slide 8: Portfolio Highlights
Portfolio Highlights Senior Secured Focus $2.57B 329 PORTFOLIO SIZE ISSUER COUNT 2% 4% 17% First Lien Second Lien Mezzanine 74% 89% 3% Equity 3% Structured JV 71% SECURED DEBT FLOATING RATE 587 BPS 10.1% Diversified Industry Exposure WEIGHTED AVERAGE YIELD Services: Business SPREAD Banking & Finance
Slide 9: Portfolio Composition
Portfolio Composition Investment Portfolio by Issuer Investment Portfolio Strategy1 • Barings BDC maintains a highly diversified portfolio, with the top • BBDC’s existing investments are substantially consistent with our issuer accounting for 5.9% of exposure and the top 10 issuers long-term strateg
Slide 10: Portfolio Composition Trends
Portfolio Composition Trends Consistent Focus on Secured Investments Active Rotation to Barings Originated Loans • Barings BDC has consistently been comprised largely of secured • Barings BDC is driving towards a portfolio focused on investments. When accounting for the look-through exposure of secu
Slide 11: Risk Rating Trends
1 Issuer performing materially above expectations Risk Rating Trends 2 Issuer performing consistent with expectations Portfolio performance is reflected in the shifts between the risk rating categories shown at right 3 Issuer performing modestly below expectations Non-Accruals comprise approximately
Slide 12: Credit Support Agreements
Credit Support Agreements What are the Credit Support Agreements (CSAs)? How will Barings LLC compensate Barings BDC investors for the losses? The CSAs are a form of manager support between Barings LLC and BBDC created in connection with the acquisitions of MVC and Sierra. First, Barings LLC will wa
Slide 13: Credit Support Agreements
Credit Support Based on current portfolio valuations, the Sierra CSA and the MVC CSA insulate BBDC shareholders from a meaningful Agreements portion of credit losses in the acquired portfolio Sierra Income CSA MVC Capital CSA REMAINING ISSUERS — 20 REMAINING ISSUERS — 2 $100.0 $100.0 $100.0 $80.0 $8
Slide 14: MVC CSA Termination
MVC CSA Termination The accelerated payment of the MVC CSA reflects unparalleled manager and shareholder alignment, with a range key benefits to BBDC shareholders Accelerates Single Payment at Shareholders Retain Immediate NAV Simplification of Maximum CSA Upside on Legacy Accretion Portfolio Value
Slide 15: BBDC & Barings Focus on Shareholders
BBDC & Barings Focus on Shareholders BBDC’s manager, Barings, owns 13% of the Outstanding Stock of BBDC, but the alignment is demonstrated in numerous ways INCENTIVE FEE HURDLE RATE CREDIT SUPPORT AGREEMENTS Hurdle Rate $123 8.50% 8.00% • BBDC Hurdle Rate: 8.25% 7.50% • Barings made a commitment to
Slide 16: BBDC Net Asset Value (NAV) Per Share Bridge
BBDC Net Asset Value (NAV) Per Share Bridge BBDC’s NAV per share was flat, $11.29 in both 1Q25 (March 31, 2025) & 4Q24 (December 31, 2024), this was driven by unrealized appreciation on assets, partially offset by the special and regular dividend exceeding net investment income Total may not foot du
Slide 17: BBDC Income Statement
BBDC Income Statement (In thousands, except share and per share data) 1Q25 4Q24 3Q24 2Q24 1Q24 Investment income: Interest income $45,620 $50,140 $51,663 $54,927 $54,533 Dividend income 10,742 11,084 9,841 11,734 8,477 Fee and other income 3,573 5,360 4,289 3,769 3,474 Payment-in-kind interest incom
Slide 18: BBDC Balance Sheet
BBDC Balance Sheet Debt-to-equity as of March 31, 2025, was 1.28x, or 1.24x after adjusting for unrestricted cash and foreign currencies and net unsettled transactions March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Assets: Investments at fair value: Non-Control / No
Slide 19: BBDC Debt Summary and Maturity Profile
BBDC Debt Summary and Maturity Profile Consistent Leverage Varied Counterparties Available Liquidity Maturity Ladder Targeted leverage range of 0.9x – Relationships with 15+ banks across Access to ample liquidity via Well-diversified ladder of maturities 1.25x (1.24x as of quarter-end) which corpora
Slide 20: BBDC Dividends Declared Per Share
BBDC Dividends Declared Per Share $0.35 $0.05 $0.05 $0.30 Barings BDC declared a $0.25 $0.26 $0.26 $0.26 $0.26 $0.26 $0.26 $0.26 $0.26 $0.25 $0.25 2Q 2025 dividend of $0.24 $0.24 $0.24 $0.26 per share to be paid along with a previously $0.20 declared $0.05 special dividend $0.15 $0.10 $0.05 $0.00 2Q
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Debt-to-Net Debt & Calculation of Net Debt-to-Equity Ratio
Reconciliation of Debt-to-Net Debt & Calculation of Net Debt-to-Equity Ratio March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 Total debt (principal) $1,522,268 $1,463,590 $1,372,851 $1,375,826 $1,465,352 minus: Unrestricted cash and foreign currencies (93,355) (77,846
Slide 23: Barings BDC Corporate Data
Barings BDC Corporate Data BOARD OF DIRECTORS MANAGEMENT TEAM RESEARCH COVERAGE GENERAL Eric Lloyd Eric Lloyd BofA Securities Corporate Headquarters Executive Chairman & CEO of BBDC, Chief Executive Officer Derek Hewett 300 South Tryon Street President of Barings (415) 676-3518 Suite 2500 Matthew Fr
Slide 24: Important Information
Important Information Barings LLC, Barings Securities LLC, Barings (U.K.) Limited, Barings Australia Pty Ltd, Barings Australia Property Pty Ltd, Gryphon Capital Investments Pty Ltd Barings Japan Limited, Baring Asset Management Limited, Baring International Investment Limited, Baring Fund Managers
Slide 25: Barings
BARINGS Investing Together PUBLIC & PRIVATE FIXED INCOME | REAL ESTATE | SPECIALIST EQUITIES