UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 9, 2019

_________________________________________________________
Barings BDC, Inc.
(Exact name of registrant as specified in its charter)
 _________________________________________________________
 
 
 
 
 
Maryland
 
814-00733
 
06-1798488
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
300 South Tryon Street, Suite 2500
Charlotte, North Carolina
 
28202
(Address of Principal Executive Offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (704) 805-7200

Not Applicable
(Former name or former address, if changed since last report.)
_________________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐





Item 1.01.    Entry into a Material Definitive Agreement.
On May 9, 2019, Barings BDC, Inc. (the "Company") completed a $449.3 million term debt securitization (the “Debt Securitization”). Term debt securitizations are also known as collateralized loan obligations and are a form of secured financing incurred by the Company, which is consolidated by the Company for financial reporting purposes and subject to its overall asset coverage requirement. The notes offered in the Debt Securitization (collectively, the “2019 Notes”) were issued by Barings BDC Static CLO Ltd. 2019-I (“BBDC Static CLO Ltd.”) and Barings BDC Static CLO 2019-I, LLC, wholly-owned and consolidated subsidiaries of the Company (collectively, the “Issuers”), and are secured by a diversified portfolio of senior secured loans and participation interests therein. The Debt Securitization was executed through a private placement of approximately $296.8 million of AAA(sf) Class A-1 Senior Secured Floating Rate 2019 Notes (“Class A-1 2019 Notes”), which bear interest at the three-month LIBOR plus 1.02%; $51.5 million of AA(sf) Class A-2 Senior Secured Floating Rate 2019 Notes (“Class A-2 2019 Notes”), which bear interest at the three-month LIBOR plus 1.65%; and $101.0 million of Subordinated 2019 Notes which do not bear interest and are not rated. The Company retained all of the Subordinated 2019 Notes issued in the Debt Securitization in exchange for the Company’s sale and contribution to BBDC Static CLO Ltd. of the initial closing date portfolio, which included loans and participation interests therein distributed to the Company by Barings BDC Senior Funding I, LLC (“BSF”), a wholly-owned financing subsidiary of the Company. The 2019 Notes are scheduled to mature on April 15, 2027; however the 2019 Notes may be redeemed by the Issuers, at the direction of the Company as holder of the Subordinated 2019 Notes, on any business day after May 9, 2020. In connection with the sale and contribution, the Company has made customary representations, warranties and covenants to the Issuers.
The Class A-1 2019 Notes and Class A-2 2019 Notes are the secured obligations of the Issuers, the Subordinated 2019 Notes are the unsecured obligations of BBDC Static CLO Ltd., and the indenture governing the 2019 Notes includes customary covenants and events of default. The 2019 Notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities or “blue sky” laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from registration.
Following the closing of the Debt Securitization, the Company repaid $344.5 million of outstanding borrowings under BSF’s credit facility with Bank of America, N.A. (as amended and restated in December 2018, the “August 2018 Credit Facility”) with proceeds from the Debt Securitization. In addition, the Company reduced its Class A Loan Commitments under the August 2018 Credit Facility from $100.0 million to zero and reduced its Class A-1 Loan Commitments under the August 2018 Credit Facility from $500.0 million to $300.0 million, which collectively reduced total commitments under the August 2018 Credit Facility to $300.0 million effective May 9, 2019.
The Company serves as collateral manager to BBDC Static CLO Ltd. under a collateral management agreement and has agreed to irrevocably waive all collateral management fees payable pursuant to the collateral management agreement.

Item 2.02.    Results of Operations and Financial Condition.    
On May 9, 2019, the Company issued a press release announcing its financial results for the quarter ended March 31, 2019. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information included in this Item 2.02 and Item 7.01, and Exhibit 99.1 attached hereto, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall such information be deemed incorporated by reference into any filing made by the Company under the Exchange Act or the Securities Act.

Item 2.03.
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 is incorporated by reference into this Item 2.03.

Item 5.07.    Submission of Matters to a Vote of Security Holders.
Set forth below are descriptions of the matters voted on at the Company’s 2019 Annual Meeting of Stockholders, held today, Thursday, May 9, 2019and the final results of such voting:





Proposal 1 - Election of Directors
The following individuals, constituting all of the nominees named in the Company's Proxy Statement, as filed with the Securities and Exchange Commission on March 18, 2019, were elected as Class I directors to serve until the Company's 2022 annual meeting of stockholders and until their successors have been duly elected and qualified. The following votes were taken in connection with this proposal:
 
 
 
 
 
 
 
 
 
Director
 
For
 
Against
 
Abstain
 
Broker
Non-Votes
Eric Lloyd
 
22,665,414

 
368,085

 
225,488

 
11,389,944

Mark F. Mulhern
 
16,271,859

 
6,753,627

 
233,498

 
11,389,947

Proposal 2 - Ratification of Appointment of Independent Registered Public Accounting Firm
The proposal to ratify the selection of Ernst & Young LLP as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2019 was approved. The following votes were taken in connection with this proposal:
For
Against
Abstain
34,257,763

272,717

118,451


Item 7.01.    Regulation FD Disclosure.
The disclosure contained in Item 2.02 of this Current Report on Form 8-K is hereby incorporated in this Item 7.01 by reference.

Item 9.01.    Financial Statements and Exhibits.
(d) Exhibits
Exhibit
No.
  
Description
99.1
  






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
Barings BDC, Inc.
 
 
 
Date: May 9, 2019
 
By:
 
/s/ Jonathan Bock
 
 
 
 
Jonathan Bock
 
 
 
 
Chief Financial Officer




Exhibit


Exhibit 99.1    
 

BARINGS BDC, INC. REPORTS FIRST QUARTER 2019 RESULTS,
ANNOUNCES JOINT VENTURE WITH SOUTH CAROLINA
RETIREMENT SYSTEMS GROUP TRUST AND
ANNOUNCES QUARTERLY CASH DIVIDEND OF $0.13 PER SHARE

CHARLOTTE, N.C., May 9, 2019 - Barings BDC, Inc. (NYSE: BBDC) ("Barings BDC" or the "Company") today reported its financial and operating results for the first quarter of 2019, announced that it has entered into a joint venture with South Carolina Retirement Systems Group Trust ("SCRS") and announced that the Company's Board of Directors declared a quarterly cash dividend of $0.13 per share.
Highlights
Income Statement
Three Months Ended
March 31, 2019

Three Months Ended
December 31, 2018
(dollars in millions, except per share data)
Total Amount
Per
Share(1)
Total Amount
Per
Share(2)
Net investment income
$
8.0

$
0.16

$
8.2

$
0.16

Net realized gains (losses)
$
(0.1
)
$

$
3.3

$
0.06

Net unrealized appreciation (depreciation)
$
25.4

$
0.50

$
(56.0
)
$
(1.09
)
Net increase (decrease) in net assets resulting from operations
$
33.2

$
0.65

$
(42.7
)
$
(0.83
)
Dividends paid
 
$
0.12

 
$
0.10

(1) Based on weighted average shares outstanding during the period of 51,157,646.
(2) Based on weighted average shares outstanding during the period of 51,284,064.
Investment Portfolio and Balance Sheet
 
 
(dollars in millions, except per share data)
As of
March 31, 2019
As of
December 31, 2018
Investment portfolio at fair value
$1,189.4
$1,121.9
Weighted average yield on debt investments, excluding short-term investments
(at principal amount)
6.3
%
6.2
%
 
 
 
Total assets
$1,211.2
$1,167.6
Debt outstanding
$620.0
$570.0
Total net assets (equity)
$584.2
$563.0
Net asset value per share
$11.52
$10.98
Debt-to-equity ratio
1.06
x
1.01x
First Quarter 2019 Results
Commenting on the quarter, Eric Lloyd, Chief Executive Officer, stated, "The beginning of 2019 has been very active for the Company. The Company's share repurchase plan began in the first quarter, which provided $0.02 of accretive value for our shareholders, we closed our first debt securitization and we entered into a joint venture with the State of South Carolina Retirement Systems. In addition, we saw spreads recover in the liquid credit markets and saw improved marks on our broadly-syndicated loan portfolio, as underlying performance at our portfolio companies has remained strong. Origination activity has remained steady and we closed more than $63 million of loans to middle-market obligors in the quarter. In addition, we earned net investment income of $0.16 per share, which exceeded our first quarter dividend by $0.04 per share."





During the three months ended March 31, 2019, the Company reported total investment income of $18.3 million, net investment income of $8.0 million, or $0.16 per share, and a net increase in net assets resulting from operations of $33.2 million, or $0.65 per share. The net increase in net assets resulting from operations was predominately due to $24.5 million in net unrealized appreciation on the Company's current portfolio which was attributable to global risk spread recovery during January and February.
Net asset value ("NAV") per share as of March 31, 2019 was $11.52, as compared to $10.98 as of December 31, 2018. The increase in NAV per share from December 31, 2018 to March 31, 2019 was primarily attributable to net unrealized appreciation on the Company's investment portfolio of approximately $0.50 per share, net investment income exceeding the first quarter dividend by $0.04 per share and the impact of accretive share repurchases of $0.02 per share.
Joint Venture with SCRS
On May 8, 2019, the Company entered into an agreement with SCRS to create and co-manage Jocassee Partners LLC ("Jocassee"), a joint venture, which will invest in a highly diversified asset mix including senior secured, middle-market, private debt investments, syndicated senior secured loans, structured products and real estate debt. The Company and SCRS have committed to initially provide $50.0 million and $500.0 million, respectively, of equity capital to Jocassee. Equity contributions will be called from each member on a pro-rata basis, based on their equity commitments.
"We are extremely pleased to partner with the State of South Carolina Retirement System on this joint venture, which provides meaningful investment capacity in a wide range of asset classes that complements the Barings platform. The South Carolina Retirement System remains a leading investor in the private credit and alternatives categories and we appreciate their partnership with the Company. We look forward to this investment driving attractive risk-adjusted returns for our shareholders," said Jonathan Bock, Chief Financial Officer.
Geoffrey Berg, CIO of the South Carolina Retirement System Investment Commission, said, “We look forward to our joint venture partnership with Barings BDC. The breadth of expertise across the Barings platform enables us to take advantage of opportunities across the liquid and private credit landscape.”
Steve Marino, Managing Director of the South Carolina Retirement Investment Commission, stated, “We are excited to partner with Barings BDC to generate strong risk-adjusted returns. The Barings platform and heightened focus on superior investor alignment have been a key differentiator in this process.”
Share Repurchase Plan
On February 25, 2019, the Company adopted a share repurchase plan, pursuant to Board approval, for the purpose of repurchasing shares of the Company's common stock in the open market (the "Share Repurchase Plan"). The Board authorized the Company to repurchase in 2019 up to a maximum of 5.0% of the amount of shares outstanding under the following targets:
a maximum of 2.5% of the amount of shares of the Company's common stock outstanding if shares trade below NAV per share but in excess of 90% of NAV per share; and
a maximum of 5.0% of the amount of shares of the Company's common stock outstanding if shares trade below 90% of NAV per share.
As of May 9, 2019, the Company had repurchased a total of 753,856 shares of its common stock in the open market under the Share Repurchase Plan, at an average price of $9.89 per share, including commissions paid.
Liquidity and Capitalization
As of March 31, 2019, the Company had cash of $3.1 million, short-term money market fund investments of $62.4 million, $580.0 million of borrowings outstanding under the $600.0 million credit agreement for Barings BDC Senior Funding I, LLC (the “BSF Credit Agreement”) and $40.0 million of borrowings outstanding under its $800.0 million senior secured revolving credit agreement. Following the closing of the $449.3 million term debt securitization on May 9, 2019, the Company repaid $344.5 million of outstanding borrowings under the BSF Credit Agreement and reduced total commitments under the BSF Credit Agreement to $300.0 million.
Commenting on the Company's liquidity and capitalization, Jonathan Bock, Chief Financial Officer, stated, "We have been active in 2019 to expand our balance sheet with our new corporate credit facility and term debt securitization. These funding sources have created a more diversified, cost-effective capital structure with an expanded maturity ladder, putting us in a stronger position to continue our middle-market portfolio expansion while managing through periods of market volatility." 





Dividend Information
The Board has declared a quarterly cash dividend of $0.13 per share. This represents a $0.01 increase from the first quarter dividend of 2019 and a dividend yield of approximately 5%.
The Company’s second quarter dividend will be payable as follows:
Second Quarter 2019 Dividend:
Amount per share:         $0.13
Record date:             June 12, 2019
Payment date:         June 19, 2019
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 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.
Recent Portfolio Activity
During the three months ended March 31, 2019, the Company purchased $0.7 million in syndicated senior secured loans, made new investments in six middle-market portfolio companies totaling $63.0 million, consisting of five first lien senior secured private debt investments and one second lien private debt investment, and made additional debt investments in two existing portfolio companies totaling $1.7 million. In addition, the Company invested $17.2 million, net, in money market fund investments during the three months ended March 31, 2019. The Company received $5.9 million of principal payments and sold $33.4 million of syndicated secured loans and senior secured private debt investments, recognizing a net realized loss on these sales of $0.4 million. In addition, the Company received $0.3 million in escrow distributions from two portfolio companies, which were recognized as realized gains.
Subsequent Events
From April 1, 2019 through May 8, 2019, Barings BDC made approximately $66.1 million of new middle market private debt and equity commitments, of which approximately $54.6 million closed and funded. The $54.6 million of middle market investments consist of all first lien senior secured debt and the weighted average yield of the closed originations was 8.1%. In addition, as of May 8, 2019, Barings North American Private Finance group had a probability weighted pipeline of approximately $440.3 million, in which Barings BDC may have the ability to participate. Not all deals may be suitable for Barings BDC and the Company's allocations will be determined in accordance with Barings Global Private Finance allocation policy.
Conference Call to Discuss First Quarter 2019 Results
Barings BDC has scheduled a conference call to discuss first quarter 2019 financial and operating results for Friday, May 10, 2019, 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 May 24, 2019. To access the replay, please dial 877-660-6853 or 201-612-7415 and enter conference ID 13689167.
Barings BDC's quarterly results conference call will also be available via a live webcast on the investor relations section of its 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 May 24, 2019.





Forward-Looking Statements
Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or Barings BDC’s future performance or financial condition. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management’s current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. Forward-looking statements include, but are not limited to, the ability of Barings LLC to manage Barings BDC and identify investment opportunities, are subject to change at any time based upon economic, market or other conditions, and may not be relied upon as investment advice or an indication of the fund’s trading intent. More information on these risks and other potential factors that could affect the Company’s financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or on the webcast/conference call, is included in the Company’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. In addition, there is no assurance that Barings BDC or any of its affiliates will purchase additional shares of Barings BDC at any specific discount levels or in any specific amounts. There is no assurance that the market price of Barings BDC’s shares, either absolutely or relative to net asset value, will increase as a result of any share repurchases, or that any repurchase plan will enhance stockholder value over the long term. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.
About Barings BDC
Barings BDC, Inc. (NYSE: BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Barings BDC seeks to invest primarily in senior secured loans to private U.S. middle market companies that operate across a wide range of industries. Barings BDC's investment activities are managed by its investment adviser, Barings LLC, a leading global asset manager based in Charlotte, NC with over $317 billion* of AUM firm-wide. For more information, visit www.baringsbdc.com.
About Barings LLC
Barings is a $317+ billion* global financial services firm dedicated to meeting the evolving investment and capital needs of our clients and customers. Through active asset management and direct origination, we provide innovative solutions and access to differentiated opportunities across public and private capital markets. A subsidiary of MassMutual, Barings maintains a strong global presence with business and investment professionals located across North America, Europe and Asia Pacific. Learn more at www.barings.com.
*As of March 31, 2019
Media Contact:
Kelly Smith, Media Relations, Barings, (980) 417-5648, kelly.smith@barings.com
Investor Relations:
BDCinvestorrelations@barings.com, (888) 401-1088







Barings BDC, Inc.
Consolidated Balance Sheets
 
March 31, 2019
 
December 31, 2018
 
(Unaudited)
 
 
Assets:
 
 
 
Investments at fair value:
 
 
 
Non-Control / Non-Affiliate investments (cost of $1,153,635,479 and $1,128,694,715 as of March 31, 2019 and December 31, 2018, respectively)
$
1,126,969,755

 
$
1,076,631,804

Short-term investments (cost of $62,414,373 and $45,223,941 as of March 31, 2019 and December 31, 2018, respectively)
62,414,373

 
45,223,941

Total investments at fair value
1,189,384,128

 
1,121,855,745

Cash
3,056,609

 
12,426,982

Interest and fees receivable
5,247,730

 
6,008,700

Prepaid expenses and other assets
2,885,001

 
4,123,742

Deferred financing fees
6,472,994

 
251,908

Receivable from unsettled transactions
4,124,686

 
22,909,998

Total assets
$
1,211,171,148

 
$
1,167,577,075

Liabilities:
 
 
 
Accounts payable and accrued liabilities
$
6,039,494

 
$
5,327,249

Interest payable
334,161

 
749,525

Payable from unsettled transactions
636,179

 
28,533,014

Borrowings under credit facilities
620,000,000

 
570,000,000

Total liabilities
627,009,834

 
604,609,788

Commitments and contingencies
 
 
 
Net Assets:
 
 
 
Common stock, $0.001 par value per share (150,000,000 shares authorized, 50,690,659 and 51,284,064 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively)
50,691

 
51,284

Additional paid-in capital
879,033,345

 
884,894,249

Total distributable earnings (loss)
(294,922,722
)
 
(321,978,246
)
Total net assets
584,161,314

 
562,967,287

Total liabilities and net assets
$
1,211,171,148

 
$
1,167,577,075

Net asset value per share
$
11.52

 
$
10.98








Barings BDC, Inc.
Unaudited Consolidated Statements of Operations
 
Three Months
Ended
 
Three Months
Ended
 
March 31,
2019
 
March 31,
2018
Investment income:
 
 
 
Interest income:
 
 
 
Non-Control / Non-Affiliate investments
$
17,861,319

 
$
19,006,050

Affiliate investments

 
2,660,187

Control investments

 
275,036

Short-term investments
172,695

 

Total interest income
18,034,014

 
21,941,273

Dividend income:
 
 
 
Non-Control / Non-Affiliate investments

 
185,712

Affiliate investments

 
4,550

Total dividend income

 
190,262

Fee and other income:
 
 
 
Non-Control / Non-Affiliate investments
301,057

 
1,293,717

Affiliate investments

 
394,273

Control investments

 
100,000

Total fee and other income
301,057

 
1,787,990

Payment-in-kind interest income:
 
 
 
Non-Control / Non-Affiliate investments

 
1,306,581

Affiliate investments

 
422,140

Total payment-in-kind interest income

 
1,728,721

Interest income from cash
4,687

 
427,841

Total investment income
18,339,758

 
26,076,087

Operating expenses:
 
 
 
Interest and other financing fees
5,844,172

 
7,590,548

Base management fee (Note 2)
2,450,995

 

Compensation expenses
118,444

 
4,092,852

General and administrative expenses (Note 2)
1,968,860

 
1,668,509

Total operating expenses
10,382,471

 
13,351,909

Net investment income
7,957,287

 
12,724,178

Realized and unrealized gains (losses) on investments and foreign currency borrowings:
 
 
 
Net realized gains (losses):
 
 
 
Non-Control / Non-Affiliate investments
(129,775
)
 
(11,939,484
)
Affiliate investments

 
3,257,198

Control investments

 
4,000

Net realized losses on investments
(129,775
)
 
(8,678,286
)
Foreign currency borrowings

 
1,423,126

Net realized losses
(129,775
)
 
(7,255,160
)
Net unrealized appreciation (depreciation):
 
 
 
Non-Control / Non-Affiliate investments
25,397,188

 
9,932,384

Affiliate investments

 
1,455,331

Control investments

 
(1,370,875
)
Net unrealized appreciation on investments
25,397,188

 
10,016,840

Foreign currency borrowings

 
(963,415
)
Net unrealized appreciation
25,397,188

 
9,053,425

Net realized and unrealized appreciation on investments and foreign currency borrowings
25,267,413

 
1,798,265

Loss on extinguishment of debt
(44,395
)
 

Provision for taxes
(17,992
)
 
(50,790
)
Net increase in net assets resulting from operations
$
33,162,313

 
$
14,471,653

Net investment income per share—basic and diluted
$
0.16

 
$
0.27

Net increase in net assets resulting from operations per share—basic and diluted
$
0.65

 
$
0.30

Dividends/distributions per share:
 
 
 
Total dividends/distributions per share
$
0.12

 
$
0.30

Weighted average shares outstanding—basic and diluted
51,157,646

 
47,898,859








BARINGS BDC, INC.
Unaudited Consolidated Statements of Cash Flows 
 
Three Months Ended
 
Three Months Ended
 
March 31, 2019
 
March 31, 2018
Cash flows from operating activities:
 
 
 
Net increase in net assets resulting from operations
$
33,162,313

 
$
14,471,653

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Purchases of portfolio investments
(93,255,027
)
 
(28,285,073
)
Repayments received/sales of portfolio investments
58,368,472

 
81,440,184

Purchases of short-term investments
(174,926,000
)
 

Sales of short-term investments
157,735,568

 

Loan origination and other fees received
987,006

 
205,499

Net realized loss on investments
129,775

 
8,678,286

Net realized gain on foreign currency borrowings

 
(1,423,126
)
Net unrealized appreciation of investments
(25,397,188
)
 
(9,934,939
)
Net unrealized depreciation of foreign currency borrowings

 
963,415

Payment-in-kind interest accrued, net of payments received

 
1,425,537

Amortization of deferred financing fees
180,746

 
662,793

Loss on extinguishment of debt
44,395

 

Accretion of loan origination and other fees
(224,397
)
 
(1,224,392
)
Amortization/accretion of purchased loan premium/discount
(58,115
)
 
(5,986
)
Depreciation expense

 
13,707

Stock-based compensation

 
1,455,543

Changes in operating assets and liabilities:
 
 
 
Interest and fees receivables
760,970

 
849

Prepaid expenses and other assets
1,238,741

 
(640,155
)
Accounts payable and accrued liabilities
712,245

 
(3,246,232
)
Interest payable
(415,364
)
 
(2,194,990
)
Net cash provided by (used in) operating activities
(40,955,860
)
 
62,362,573

Cash flows from financing activities:
 
 
 
Borrowings under credit facilities
85,000,000

 

Repayments of credit facilities
(35,000,000
)
 
(30,609,489
)
Financing fees paid
(6,446,227
)
 

Purchases of shares in repurchase plan
(5,861,497
)
 

Common stock withheld for payroll taxes upon vesting of restricted stock

 
(1,283,484
)
Cash dividends/distributions paid
(6,106,789
)
 
(14,407,384
)
Net cash provided by (used in) financing activities
31,585,487

 
(46,300,357
)
Net increase (decrease) in cash
(9,370,373
)
 
16,062,216

Cash, beginning of period
12,426,982

 
191,849,697

Cash, end of period
$
3,056,609

 
$
207,911,913

Supplemental disclosure of cash flow information:
 
 
 
Cash paid for interest
$
5,589,938

 
$
8,748,005