BARINGS BDC, INC. REPORTS SECOND QUARTER 2025 RESULTS AND ANNOUNCES QUARTERLY CASH DIVIDEND OF $0.26 PER SHARE (Form 8-K)

BARINGS BDC, INC. REPORTS SECOND QUARTER 2025 RESULTS AND

ANNOUNCES QUARTERLY CASH DIVIDEND OF $0.26 PER SHARE

CHARLOTTE, N.C., August 7, 2025 - Barings BDC, Inc. (NYSE: BBDC) ("Barings BDC" or the "Company") today reported its financial and operating results for the second quarter of 2025 and announced that the Company's Board of Directors (the "Board") declared a quarterly cash dividend of $0.26 per share.

Highlights

			Three Months Ended						Three Months Ended
Income Statement			June 30, 2025						March 31, 2025
(dollars in millions, except per share data)			Total Amount			Per Share(1)			Total Amount			Per Share(2)
Net investment income			$29.8			$0.28			$26.4			$0.25
Net realized gains (losses)			$(15.2)			$(0.14)			$(1.1)			$(0.01)
Net unrealized appreciation (depreciation)			$5.9			$0.06			$7.3			$0.07
Net increase in net assets resulting from operations			$20.6			$0.20			$32.6			$0.31
Regular dividends paid						$0.26						$0.26
Special dividends paid						$0.05						$0.05

(1) Based on weighted average shares outstanding during the period of 105,232,015.

(2) Based on weighted average shares outstanding during the period of 105,373,382.

Investment Portfolio and Balance Sheet
(dollars in millions, except per share data)			As of June 30, 2025			As of March 31, 2025			As of December 31, 2024
Investment portfolio at fair value			$2,623.9			$2,571.2			$2,449.3
Weighted average yield on performing debt investments (at principal amount)			9.8%			9.9		%	10.2		%
Total assets			$2,793.3			$2,791.3			$2,695.7
Debt outstanding (principal)			$1,572.3			$1,522.3			$1,463.6
Total net assets (equity)			$1,175.8			$1,188.8			$1,190.4
Net asset value per share			$11.18			$11.29			$11.29
Debt-to-equity ratio			1.34x			1.28x			1.23x
Net debt-to-equity ratio (adjusted for unrestricted cash and net unsettled transactions)			1.29x			1.24x			1.16x

Second Quarter 2025 Results

Commenting on the quarter, Eric Lloyd, Chief Executive Officer of Barings BDC, stated, "Our portfolio generated strong performance in the second quarter, delivering sequential net investment income growth. Our net investment income was $0.28 per share, fully covering our regular dividend. Further, our net investment income per share performance for the first half of 2025 fully covers our regular distributions year-to-date. Our disciplined investment approach continues to drive superior credit performance, with non-accruals at just 0.5% of our portfolio on a fair value basis. Also, we deployed almost $200 million into new and existing investments during the second quarter of 2025, in line with our strategy to deploy capital into high-quality, income producing opportunities that align with our selective investment strategy. With over $322 million of dry powder and the strength of the Barings platform, we believe that we remain well positioned to generate attractive risk-adjusted returns for our shareholders."

During the three months ended June 30, 2025, the Company reported total investment income of $74.4 million, net investment income of $29.8 million, or $0.28 per share, and a net increase in net assets resulting from operations of $20.6 million, or $0.20 per share.

Net asset value ("NAV") per share as of June 30, 2025 was $11.18, as compared to $11.29 as of March 31, 2025. The decrease in NAV per share from March 31, 2025 to June 30, 2025 was primarily attributed to a net realized loss on investments, credit support agreements, foreign currency transactions and forward currency contracts of $0.14 per share, and the Company's payment of a second quarter special dividend of $0.05 per share, partially offset by net unrealized appreciation on the Company's investment portfolio, credit support agreements, foreign currency transactions and forward currency contracts of approximately $0.06 per share, and the Company's second quarter net investment income exceeding the second quarter regular dividend paid by $0.02 per share.

Recent Portfolio Activity

During the three months ended June 30, 2025, the Company made 19 new investments totaling $137.3 million and made investments in existing portfolio companies totaling $61.7 million. The Company had 14 loans repaid totaling $59.1 million and recognized a net realized loss on these transactions of $17.6 million. The Company also received $35.5 million of portfolio company principal payments and sales proceeds and recognized a net realized gain on these transactions of $0.3 million. The Company received $4.0 million of return of capital from joint ventures, equity, and royalty rights investments. The Company also received proceeds of $4.7 million related to the exit of one of its royalty rights investments and recognized a realized gain on such exit of $2.5 million. In addition, the Company sold $55.9 million of middle-market portfolio debt investments to its joint ventures, recognizing a net realized gain on these transactions of $0.7 million. Also, investments in two portfolio companies were restructured, which resulted in a net realized loss of $2.3 million. Lastly, the Company received proceeds related to the sales and exits of equity investments totaling $8.1 million and recognized a net realized gain on such sales totaling $5.4 million.

During the three months ended June 30, 2025, the Company recorded net unrealized appreciation totaling $5.9 million, consisting of net unrealized appreciation on the Company's current portfolio of $14.7 million, net unrealized appreciation reclassification adjustments of $12.8 million related to the net realized losses on the sales / exits of certain investments, unrealized appreciation of $6.4 million on the Sierra credit support agreement with Barings LLC ("Barings"), partially offset by net unrealized depreciation related to foreign currency transactions of $15.2 million, unrealized depreciation of $9.4 million related to the net realized gain on the termination of the MVC credit support agreement with Barings and net unrealized depreciation related to forward currency contracts of $3.3 million. The net unrealized appreciation on the Company's current portfolio of $14.7 million was driven primarily by the impact of foreign currency exchange rates on investments of $34.2 million, partially offset by the credit or fundamental performance of investments of $13.0 million and broad market moves for investments of $6.5 million.

Liquidity and Capitalization

As of June 30, 2025, the Company had cash and foreign currencies of $49.3 million (including restricted cash of $4.7 million), $547.3 million of borrowings outstanding under its $825.0 million senior secured credit agreement, $1,025.0 million aggregate principal amount of unsecured notes outstanding and a net receivable from unsettled transactions of $11.3 million.

Share Repurchase Program

On February 20, 2025, the Board authorized a new 12-month share repurchase program. Under the program, the Company may repurchase, during the 12-month period commencing on March 1, 2025, up to $30.0 million in the aggregate of its outstanding common stock in the open market at prices below the then-current NAV per share. The timing, manner, price and amount of any share repurchases will be determined by the Company, in its discretion, based upon the evaluation of economic and market conditions, the Company's stock price, applicable legal, contractual and regulatory requirements and other factors. The program is expected to be in effect until March 1, 2026, unless extended or until the aggregate repurchase amount that has been approved by the Board has been expended. The program does not require the Company to repurchase any specific number of shares, and the Company cannot assure stockholders that any shares will be repurchased under the program. The program may be suspended, extended, modified or discontinued at any time. During the three months ended June 30, 2025, the Company repurchased a total of 100,000 shares of its common stock in the open market under the authorized program at an average price of $8.88 per share, including brokerage commissions. As of August 7, 2025, the Company has repurchased a total of 250,000 shares of its common stock in the open market under the authorized program at an average price of $9.35 per share, including brokerage commissions.

Dividend Information

The Board declared a quarterly cash dividend of $0.26 per share, which, together with the previously declared special dividend payable during the third quarter of 2025 in the amount of $0.05 per share, is payable as follows:

Third Quarter 2025 Dividend:

Amount per share: $0.31

Record date: September 3, 2025

Payment date: September 10, 2025

Dividend Reinvestment Plan

Barings BDC has adopted a dividend reinvestment plan ("DRIP") that provides for reinvestment of dividends and distributions on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when the Company declares a cash dividend or distribution, stockholders who have not opted out of the DRIP will have their cash dividends or distributions automatically reinvested in additional shares of the Company's common stock, rather than receiving cash.

When the Company declares and pays dividends and distributions, it determines the allocation of the distribution between current income, accumulated income, capital gains and return of capital on the basis of accounting principles generally accepted in the United States ("GAAP"). At each year end, the Company is required for tax purposes to determine the allocation based on tax accounting principles. Due to differences between GAAP and tax accounting principles, the portion of each dividend distribution that is ordinary income, capital gain or return of capital may differ for GAAP and tax purposes. The tax status of the Company's distributions can be found on the Investor Relations page of its website.

Subsequent Events

Subsequent to June 30, 2025, the Company made approximately $59.3 million of new commitments, of which $38.6 million closed and funded. The $38.6 million of investments consists of $28.9 million of first lien senior secured debt investments, $9.4 million of subordinated debt investments and $0.3 million of equity investments. The weighted average yield of the debt investments was 9.4%. In addition, the Company funded $22.6 million of previously committed revolvers and delayed draw term loans.

On August 4, 2025, the Company's 4.66% Series A senior unsecured notes due August 2025 matured in accordance with the terms of the Note Purchase Agreement with Massachusetts Mutual Life Insurance Company and the Company repaid in full the par amount plus accrued and unpaid interest.

Conference Call to Discuss Second Quarter 2025 Results

Barings BDC has scheduled a conference call to discuss second quarter 2025 financial and operating results for Friday, August 8, 2025, at 9:00 a.m. ET.

To listen to the call, please dial 877-407-8831 or 201-493-6736 approximately 10 minutes prior to the start of the call. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available until August 15, 2025. To access the replay, please dial 877-660-6853 or 201-612-7415 and enter conference ID 13750211.

This conference call will also be available via a live webcast on the investor relations section of Barings BDC's website at https://ir.barings.com/ir-calendar. Access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the Company's website until August 15, 2025.