Barings BDC (BBDC) investor relations material

Executive summary

• Net investment income for Q2 2026 was $29.0 million ($0.28 per share), exceeding the $0.26 per share dividend, with total investment income of $65.2 million.

• Net asset value per share declined to $10.94 from $11.02 sequentially, mainly due to net unrealized depreciation, partially offset by realized gains and over-earning the dividend.

• The Board declared a Q3 2026 dividend of $0.26 per share, marking 13 consecutive quarters at this level.

• The legacy Sierra Credit Support Agreement was terminated, releasing $67 million for redeployment and resulting in a $22.6 million realized gain, offset by unrealized depreciation.

• Portfolio credit quality remained stable, with non-accruals at 0.6% of fair value and improved quarter-over-quarter.

Financial highlights

• Total investment income for Q2 2026 was $65.2 million, up from $60.6 million in Q1 2026.

• Net realized gains were $18.8 million, while net unrealized depreciation was $29.4 million.

• Investment portfolio at fair value stood at $2.46 billion as of June 30, 2026.

• Weighted average yield on debt and income-producing securities was 10.2%, with performing debt investments at 9.4%.

• Net income for the quarter was $18.3 million, or $0.18 per share.

Outlook and guidance

• Management expects current cash, borrowing capacity, and operating cash flows to be adequate for at least the next twelve months.

• Origination outlook is constructive but selective, with a robust pipeline expected to carry into the next quarter.

• Management expects continued improvement in transaction velocity and activity, though overall hold durations remain steady.

• Subsequent to quarter-end, $107.5 million in new commitments were made, with $73.6 million funded at a weighted average yield of 9.1%.

• The company continues to focus on senior secured private debt investments in middle-market businesses.