Slide 1: Barings BDC, Inc. Fourth Quarter 2024 Earnings Presentation
FEBRUARY 20, 2025 Barings BDC, Inc. Fourth Quarter 2024 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 4Q 2024 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 27% Americas 44% 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: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights Net asset value (NAV) Total originations during the as of December 31, quarter were $298 million, NET ASSET 2024, was $11.29 per ORIGINATIONS while sales and repayments VALUE share as compared to totaled $222 million, for net $11.32 per share as of originations of $76
Slide 7: Selected Financial Highlights
Selected Financial Highlights Balance Sheet Highlights 4Q 2024 3Q 2024 2Q 2024 1Q 2024 4Q 2023 Investment Portfolio, at Fair Value $2,449.3 $2,416.7 $2,395.7 $2,527.5 $2,488.7 Total Debt Outstanding (Principal) $1,463.6 $1,372.8 $1,375.8 $1,465.4 $1,444.9 Total Net Assets (Equity) $1,190.4 $1,194.4
Slide 8: Portfolio Highlights
Portfolio Highlights Senior Secured Focus $2.45B 328 PORTFOLIO SIZE ISSUER COUNT 3% 4% 17% First Lien Second Lien Mezzanine 72% 89% 4% Equity 3% Structured JV 69% SECURED DEBT FLOATING RATE 594 BPS 10.4% 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 6.2% 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 — 23 REMAINING ISSUERS — 4 $100.0 $100.0 $100.0 $80.0 $8
Slide 14: BBDC Focuses on Shareholders
BBDC Focuses on Shareholders 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 million • Average Externally- 7.00% protect investors supporting credit from certain losses Managed Public 6.50% emanating from
Slide 15: BBDC Net Asset Value (NAV) Per Share Bridge
BBDC Net Asset Value (NAV) Per Share Bridge BBDC’s NAV per share decreased in 4Q24 to $11.29 (December 31, 2024) from $11.32 (September 30, 2024), a decrease of 0.2%, driven primarily by net realized losses, partially offset by net investment income exceeding the dividend and unrealized appreciation
Slide 16: BBDC Income Statement
BBDC Income Statement (In thousands, except share and per share data) 4Q24 3Q24 2Q24 1Q24 4Q23 Investment income: Interest incom e $50,1 40 $51 ,663 $54,92 7 $54,53 3 $57 ,069 Div idend incom e 1 1 ,084 9,841 1 1 ,7 3 4 8,47 7 1 0,2 7 7 Fee and other incom e 5,3 60 4,2 89 3 ,7 69 3 ,47 4 3 ,1 52 Pay
Slide 17: BBDC Balance Sheet
BBDC Balance Sheet Debt-to-equity as of December 31, 2024, was 1.23x, or 1.16x after adjusting for unrestricted cash and foreign currencies and net unsettled transactions December 31, Sept ember 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Asset s: Inv estm ents at fair v alu e: Non-
Slide 18: BBDC Debt Summary & Maturity Profile
BBDC Debt Summary & Maturity Profile As of 12/31/2024 As of 9/30/2024 As of 6/30/2024 As of 3/31/2024 Principal Principal Principal Principal Principal Principal Principal Principal Interest Amount Amount Amount Amount Amount Amount Amount Amount Borrower Rate Collateral Maturity Date Committed Outs
Slide 19: BBDC Dividends Declared Per Share
BBDC Dividends Declared Per Share $0.35 $0.30 $0.05 Barings BDC declared a $0.25 $0.25 $0.25 $0.26 $0.26 $0.26 $0.26 $0.26 $0.26 $0.26 1Q 2025 dividend of $0.24 $0.24 $0.24 $0.23 $0.26 per share and $0.20 special dividends totalling $0.15 per share, to be paid in three equal $0.15 installments over
Slide 20: Appendix
Appendix
Slide 21: 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 December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Total debt (principal) $1,463,590 $1,372,851 $1,375,826 $1,465,352 $1,444,914 minus: Unrestricted cash and foreign currencies (77,846) (62,
Slide 22: 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 23: 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 24: Barings
BARINGS Investing Together PUBLIC & PRIVATE FIXED INCOME | REAL ESTATE | SPECIALIST EQUITIES