BBDC News & Events

Barings BDC announced the early termination of its existing credit support agreement associated with the Company's acquisition of Sierra Income Corporation, and the implementation of a new credit support agreement covering the remaining investments in two Sierra legacy portfolio companies. The original CSA, entered into on February 25, 2022 in connection with the Sierra merger, provided up to $100M of credit protection to Barings BDC shareholders against losses on the investments acquired by Barings BDC in the Sierra merger. Under the terms of the termination and cancellation agreement executed May 29, 2026, Barings, the Company's investment advisor, will make a cash payment of $67M to Barings BDC with respect to investments covered by the CSA that have been realized, have a fair value of $500,000 or less, or are in an unrealized loss position, in each case, as of the execution date. All unrealized investments covered by the CSA are currently in an unrealized loss position. The cash payment will be made on or before June 30, 2026. This cash payment fully satisfies the credit support obligation for those investments and results in the termination and extinguishment of the original CSA. Concurrently, Barings BDC and Barings entered into a new, more targeted credit support agreement, which provides continued downside protection for the remaining investments in two Sierra legacy portfolio companies that have not yet been realized in an amount equal to the fair value of such investments as of the execution date .

Reports Q1 revenue $60.57M, consensus $64.05M. Commenting on the quarter, Thomas McDonnell, Chief Executive Officer of Barings BDC, stated, "During the first quarter, we continued to deliver solid operating performance and declared a $0.26 quarterly dividend, which was supported by the strength and resilience of our predominantly senior secured portfolio. Despite a volatile market backdrop, we believe credit quality remains sound, liquidity is ample, and we are continuing to execute on initiatives designed to enhance long-term shareholder value."

Net asset value per share as of December 31, 2025 was $11.09, as compared to $11.10 as of September 30, 2025. Commenting on the quarter, Tom McDonnell, Chief Executive Officer of Barings BDC, stated, "Our portfolio delivered strong performance in the fourth quarter and throughout 2025, highlighted by net investment income that continued to exceed our regular dividend for both the quarter and the full year. Credit quality across the portfolio remains excellent, as reflected in industry-leading metrics including non-accruals of just 0.2% of fair value, strong weighted-average interest coverage, and stable portfolio spreads. These indicators highlight the resilience of our borrowers and the strength of our underwriting discipline. Supported by the scale and expertise of the Barings platform and the ongoing execution by our talented team, we remain confident in the quality of our portfolio and our ability to continue generating attractive, long-term value for shareholders."