Barings BDC, Inc. Q1 FY2025 earnings call

• BBDC delivered strong results in Q1 with net originations over $100 million, fueled by leading credit performance and focus on core middle market. • Aligned with Barings LLC ecosystem in defensive sectors. • Board accepted proposal to terminate Credit Support Agreement related to MVC capital transaction for $23 million, rotating capital into income-producing investments. • Analyzed impact of prospective tariffs on issuers, with less than 5% of portfolio having high impact, but trade discussions causing decision-making freeze in issuer community. • Portfolio composition: 74% secured investments, 71% first lien securities; top 10 issuers make up 23% of fair market value. • Risk ratings improved with combined risk ratings 4 and 5 at 8% quarter over quarter, non-accruals low. • Capital allocation includes Q2 dividend of $0.26 per share, special dividend, and $30 million share repurchase program with 150,000 shares repurchased in Q1.

Net asset value per share was $11.29, unchanged from the prior quarter. Net investment income for the quarter was $0.25 per share. Barings' originating positions now account for 94% of the BBDC portfolio at fair value, up from 76% at the start of 2022. The non-accrual rate at fair value as of March 31st was 60 basis points, well below industry averages. The weighted average yield at fair value was 10.1%, down from 10.4% in the prior quarter. The board declared a second quarter dividend of $0.26 per share, and a supplemental dividend of $0.15 paid in three quarterly installments, resulting in an 11% yield based on March's net asset value.

• Anticipate reduction in origination activity during Q2 compared to early 2025. • Supplemental dividends of $0.15 to be paid in three quarterly installments in 2025. • Share repurchase program: $30 million authorized over 12 months, with 150,000 shares repurchased in Q1. • In Q2, made $130 million in new commitments, with $106 million closed and funded; over $420 million of available capital.

• Uncertainty from trade tariffs with downstream impact possible but probability hard to assign. • Idiosyncratic risks such as failed acquisitions, poor management teams, and botched ERP implementations posing challenges to portfolio performance.

Q: No specific questions are transcribed in detail in the provided text.

A: No specific detailed answers are transcribed beyond the opening and closing remarks of the call