10-Q 1 a2020063010qbbdc.htm 10-Q Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
__________________________________________________________
Form 10-Q
__________________________________________________________
(Mark One)
ýQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission file number 814-00733 
______________________________________________________________________
Barings BDC, Inc.
(Exact name of registrant as specified in its charter)
__________________________________________________________
Maryland 06-1798488
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) 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
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report: N/A
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value $0.001 per shareBBDCThe New York Stock Exchange
________________________________________________________
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ¨    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
¨
Accelerated filer
ý
Non-accelerated filer
¨
Smaller reporting company
¨
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.
¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý
The number of shares outstanding of the registrant’s Common Stock on August 5, 2020 was 47,961,753.



BARINGS BDC, INC.
TABLE OF CONTENTS
QUARTERLY REPORT ON FORM 10-Q
  Page
PART I – FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II – OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
2


PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.
Barings BDC, Inc.
Consolidated Balance Sheets
June 30,
2020
December 31, 2019
(Unaudited)
Assets:
Investments at fair value:
Non-Control / Non-Affiliate investments (cost of $1,033,046,789 and $1,085,866,720 as of June 30, 2020 and December 31, 2019, respectively)$960,061,063  $1,066,845,054  
Affiliate investments (cost of $16,658,270 and $10,158,270 as of June 30, 2020 and December 31, 2019, respectively)15,933,845  10,229,813  
Short-term investments (cost of $58,046,476 and $96,568,940 as of June 30, 2020 and December 31, 2019, respectively)58,046,124  96,568,940  
Total investments at fair value1,034,041,032  1,173,643,807  
Cash 18,453,504  21,991,565  
Interest and fees receivable6,493,056  5,265,980  
Prepaid expenses and other assets857,173  1,112,559  
Deferred financing fees4,705,974  5,366,119  
Receivable from unsettled transactions575,630  45,254,808  
Total assets$1,065,126,369  $1,252,634,838  
Liabilities:
Accounts payable and accrued liabilities$1,213,146  $1,524,830  
Interest payable1,306,052  2,491,534  
Administrative fees payable200,000  400,000  
Base management fees payable3,616,787  3,266,722  
Payable from unsettled transactions—  4,924,150  
Borrowings under credit facilities342,921,705  352,488,419  
Debt securitization225,395,485  316,664,474  
Total liabilities574,653,175  681,760,129  
Commitments and contingencies (Note 7)
Net Assets:
Common stock, $0.001 par value per share (150,000,000 shares authorized, 47,961,753 and 48,950,803 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively)47,962  48,951  
Additional paid-in capital846,636,727  853,766,370  
Total distributable earnings (loss)(356,211,495) (282,940,612) 
Total net assets490,473,194  570,874,709  
Total liabilities and net assets$1,065,126,369  $1,252,634,838  
Net asset value per share$10.23  $11.66  
See accompanying notes.

3


Barings BDC, Inc.
Unaudited Consolidated Statements of Operations
Three Months
Ended
Three Months
Ended
Six Months EndedSix Months Ended
June 30,
2020
June 30,
2019
June 30,
2020
June 30,
2019
Investment income:
Interest income:
Non-Control / Non-Affiliate investments$15,249,065  $18,823,480  $32,645,476  $36,684,799  
Short-term investments46,614  251,344  324,605  424,039  
Total interest income15,295,679  19,074,824  32,970,081  37,108,838  
Dividend income:
Non-Control / Non-Affiliate investments2,603  4,711  2,603  4,711  
Total dividend income2,603  4,711  2,603  4,711  
Fee and other income:
Non-Control / Non-Affiliate investments650,433  519,970  1,611,426  821,027  
Total fee and other income650,433  519,970  1,611,426  821,027  
Payment-in-kind interest income:
Non-Control / Non-Affiliate investments191,049  —  234,621  —  
Total payment-in-kind interest income191,049  —  234,621  —  
Interest income from cash—  2,183  631  6,870  
Total investment income16,139,764  19,601,688  34,819,362  37,941,446  
Operating expenses:
Interest and other financing fees4,624,731  7,027,040  10,628,864  12,871,212  
Base management fee (Note 2)3,616,787  3,130,955  7,529,160  5,581,950  
Compensation expenses—  108,646  48,410  227,090  
General and administrative expenses (Note 2)1,369,117  1,922,165  2,789,730  3,891,025  
Total operating expenses9,610,635  12,188,806  20,996,164  22,571,277  
Net investment income 6,529,129  7,412,882  13,823,198  15,370,169  
Realized and unrealized gains (losses) on investments and foreign currency transactions:
Net realized gains (losses):
Non-Control / Non-Affiliate investments(16,597,865) 50,024  (16,755,844) (79,751) 
Net realized gains (losses) on investments(16,597,865) 50,024  (16,755,844) (79,751) 
Foreign currency transactions82,868  —  (61,525) —  
Net realized gains (losses)(16,514,997) 50,024  (16,817,369) (79,751) 
Net unrealized appreciation (depreciation):
Non-Control / Non-Affiliate investments63,416,644  2,014,096  (53,944,413) 27,411,284  
Affiliate investments3,037,255  (162,089) (795,968) (162,089) 
Net unrealized appreciation (depreciation) on investments66,453,899  1,852,007  (54,740,381) 27,249,195  
Foreign currency transactions(1,410,589) —  387,638  —  
Net unrealized appreciation (depreciation)65,043,310  1,852,007  (54,352,743) 27,249,195  
Net realized losses and unrealized appreciation (depreciation) on investments and foreign currency transactions48,528,313  1,902,031  (71,170,112) 27,169,444  
Loss on extinguishment of debt(306,202) (85,356) (443,592) (129,751) 
Benefit from (provision for) taxes(2,532) 17,493  17,467  (499) 
Net increase (decrease) in net assets resulting from operations$54,748,708  $9,247,050  $(57,773,039) $42,409,363  
Net investment income per share—basic and diluted$0.14  $0.15  $0.29  $0.30  
Net increase (decrease) in net assets resulting from operations per share—basic and diluted$1.14  $0.18  $(1.19) $0.83  
Dividends/distributions per share:
Total dividends/distributions per share$0.16  $0.13  $0.32  $0.25  
Weighted average shares outstanding—basic and diluted47,977,481  50,473,640  48,432,437  50,813,753  
See accompanying notes.
4


Barings BDC, Inc.
Unaudited Consolidated Statements of Changes in Net Assets
 
Common StockAdditional
Paid-In
Capital
Total Distributable Earnings (Loss)Total
Net
Assets
Three Months Ended June 30, 2019Number
of Shares
Par
Value
Balance, March 31, 201950,690,659  $50,691  $879,033,345  $(294,922,722) $584,161,314  
Net investment income—  —  —  7,412,882  7,412,882  
Net realized gain on investments / foreign currency transactions—  —  —  50,024  50,024  
Net unrealized appreciation of investments / foreign currency transactions—  —  —  1,852,007  1,852,007  
Loss on extinguishment of debt—  —  —  (85,356) (85,356) 
Income tax benefit—  —  —  17,493  17,493  
Dividends / distributions —  —  —  (6,540,856) (6,540,856) 
Purchases of shares in repurchase plan(376,384) (377) (3,787,426) —  (3,787,803) 
Balance, June 30, 201950,314,275  $50,314  $875,245,919  $(292,216,528) $583,079,705  
Common StockAdditional
Paid-In
Capital
Total Distributable Earnings (Loss)Total
Net
Assets
Three Months Ended June 30, 2020Number
of Shares
Par
Value
Balance, March 31, 202048,288,822  $48,289  $848,982,942  $(403,286,323) $445,744,908  
Net investment income—  —  —  6,529,129  6,529,129  
Net realized loss on investments / foreign currency transactions—  —  —  (16,514,997) (16,514,997) 
Net unrealized appreciation of investments / foreign currency transactions—  —  —  65,043,310  65,043,310  
Loss on extinguishment of debt—  —  —  (306,202) (306,202) 
Provision for taxes—  —  —  (2,532) (2,532) 
Dividends / distributions —  —  —  (7,673,880) (7,673,880) 
Purchases of shares in repurchase plan(327,069) (327) (2,346,215) —  (2,346,542) 
Balance, June 30, 202047,961,753  $47,962  $846,636,727  $(356,211,495) $490,473,194  
See accompanying notes.
5


Barings BDC, Inc.
Unaudited Consolidated Statements of Changes in Net Assets — (Continued)
Common StockAdditional
Paid-In
Capital
Total Distributable Earnings (Loss)Total
Net
Assets
Six Months Ended June 30, 2019Number
of Shares
Par
Value
Balance, December 31, 201851,284,064  $51,284  $884,894,249  $(321,978,246) $562,967,287  
Net investment income—  —  —  15,370,169  15,370,169  
Net realized loss on investments / foreign currency transactions—  —  —  (79,751) (79,751) 
Net unrealized appreciation of investments / foreign currency transactions—  —  —  27,249,195  27,249,195  
Loss on extinguishment of debt—  —  —  (129,751) (129,751) 
Provision for taxes—  —  —  (499) (499) 
Dividends / distributions —  —  —  (12,647,645) (12,647,645) 
Purchases of shares in repurchase plan(969,789) (970) (9,648,330) —  (9,649,300) 
Balance, June 30, 201950,314,275  $50,314  $875,245,919  $(292,216,528) $583,079,705  
Common StockAdditional
Paid-In
Capital
Total Distributable Earnings (Loss)Total
Net
Assets
Six Months Ended June 30, 2020Number
of Shares
Par
Value
Balance, December 31, 201948,950,803  $48,951  $853,766,370  $(282,940,612) $570,874,709  
Net investment income—  —  —  13,823,198  13,823,198  
Net realized loss on investments / foreign currency transactions—  —  —  (16,817,369) (16,817,369) 
Net unrealized depreciation of investments / foreign currency transactions—  —  —  (54,352,743) (54,352,743) 
Loss on extinguishment of debt—  —  —  (443,592) (443,592) 
Income tax benefit—  —  —  17,467  17,467  
Dividends / distributions —  —  —  (15,497,844) (15,497,844) 
Purchases of shares in repurchase plan(989,050) (989) (7,129,643) —  (7,130,632) 
Balance, June 30, 202047,961,753  $47,962  $846,636,727  $(356,211,495) $490,473,194  
See accompanying notes.
6


Barings BDC, Inc.
Unaudited Consolidated Statements of Cash Flows 
Six Months EndedSix Months Ended
June 30, 2020June 30, 2019
Cash flows from operating activities:
Net increase (decrease) in net assets resulting from operations$(57,773,040) $42,409,363  
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of portfolio investments(171,523,304) (171,350,190) 
Repayments received / sales of portfolio investments239,658,503  104,431,586  
Purchases of short-term investments(403,971,411) (317,480,389) 
Sales of short-term investments442,510,853  328,280,839  
Loan origination and other fees received3,131,785  2,420,157  
Net realized loss on investments16,755,844  79,751  
Net realized loss on foreign currency transactions61,525  —  
Net unrealized (appreciation) depreciation of investments 54,740,381  (27,249,195) 
Net unrealized appreciation of foreign currency transactions(387,638) —  
Payment-in-kind interest accrued, net of payments received(234,621) —  
Amortization of deferred financing fees737,617  558,712  
Loss on extinguishment of debt443,592  129,751  
Accretion of loan origination and other fees(1,141,713) (543,501) 
Amortization / accretion of purchased loan premium/discount(604,296) (114,594) 
Changes in operating assets and liabilities:
Interest and fees receivables(1,374,055) 800,641  
Prepaid expenses and other assets255,386  2,805,502  
Accounts payable and accrued liabilities(144,024) 525,202  
Interest payable(1,184,912) 1,589,621  
Net cash provided by (used in) operating activities119,956,472  (32,706,744) 
Cash flows from financing activities:
Borrowings under credit facilities108,123,996  120,000,000  
Repayments of credit facilities(117,200,000) (404,500,000) 
Proceeds from debt securitization—  348,250,000  
Repayment of debt securitization(91,790,053) —  
Financing fees paid—  (8,246,691) 
Purchases of shares in repurchase plan(7,130,632) (9,649,300) 
Cash dividends / distributions paid(15,497,844) (12,647,645) 
Net cash provided by (used in) financing activities(123,494,533) 33,206,364  
Net increase (decrease) in cash(3,538,061) 499,620  
Cash, beginning of period21,991,565  12,426,982  
Cash, end of period$18,453,504  $12,926,602  
Supplemental disclosure of cash flow information:
Cash paid for interest$9,891,871  $9,451,297  
See accompanying notes.
7

Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments
June 30, 2020


Portfolio Company Industry
Type of Investment(1) (2)
Principal
Amount
CostFair
Value
Non–Control / Non–Affiliate Investments:
1WorldSync, Inc. (4.3%)*(5) (7) (8)
IT Consulting & Other ServicesFirst Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 07/19, Due 07/25)$858,894  $844,035  $816,626  
First Lien Senior Secured Term Loan (LIBOR + 5.75%, 7.0% Cash, Acquired 07/19, Due 07/25)21,472,356  21,099,121  20,415,644  
22,331,250  21,943,156  21,232,270  
Accelerate Learning, Inc.
(1.4%)*(5) (7) (8)
Education ServicesFirst Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.6% Cash, Acquired 12/18, Due 12/24)7,567,965  7,449,704  6,933,342  
7,567,965  7,449,704  6,933,342  
Accurus Aerospace Corporation (4.3%)*(5) (7) (8)
Aerospace & DefenseFirst Lien Senior Secured Term Loan (LIBOR + 4.5%, 6.4% Cash, Acquired 10/18, Due 10/24)24,625,000  24,346,233  21,198,156  
24,625,000  24,346,233  21,198,156  
Acrisure, LLC (0.4%)*(5) (8)
Property & Casualty InsuranceFirst Lien Senior Secured Term Loan (LIBOR + 3.5%, 3.7% Cash, Acquired 03/20, Due 02/27)1,995,000  1,709,898  1,880,288  
1,995,000  1,709,898  1,880,288  
ADE Holding (d/b/a AD Education) (1.8%)*(3) (5) (7) (8)
Education ServicesFirst Lien Senior Secured Term Loan (EURIBOR + 5.0%, 5.0% Cash, Acquired 01/20, Due 01/27)9,581,593  9,163,988  8,755,838  
9,581,593  9,163,988  8,755,838  
ADMI Corp. (0.6%)*(6) (8)
Health Care ServicesFirst Lien Senior Secured Term Loan (LIBOR + 2.75%, 2.9% Cash, Acquired 08/18, Due 04/25)3,430,482  3,440,286  3,180,709  
3,430,482  3,440,286  3,180,709  
Aftermath Bidco Corporation (2.4%)*(5) (7) (8)
Professional ServicesFirst Lien Senior Secured Term Loan (LIBOR + 5.75%, 7.1% Cash, Acquired 04/19, Due 04/25)12,197,427  11,969,619  11,603,465  
12,197,427  11,969,619  11,603,465  
Alliant Holdings LP (0.9%)*(6) (8)
Property & Casualty InsuranceFirst Lien Senior Secured Term Loan (LIBOR + 2.75%, 2.9% Cash, Acquired 09/18, Due 05/25)4,910,038  4,916,270  4,643,373  
4,910,038  4,916,270  4,643,373  
Altice USA, Inc. (0.5%)*(3) (5) (8)
Cable & SatelliteFirst Lien Senior Secured Term Loan (LIBOR + 2.25%, 2.4% Cash, Acquired 09/18, Due 01/26)2,493,687  2,206,701  2,354,315  
2,493,687  2,206,701  2,354,315  
American Dental Partners, Inc. (1.8%)*(5) (7) (8)
Health Care ServicesFirst Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.3% Cash, Acquired 11/18, Due 03/23)9,850,000  9,833,760  8,983,941  
9,850,000  9,833,760  8,983,941  
American Scaffold, Inc. (1.9%)*(5) (7) (8)
Aerospace & DefenseFirst Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 09/19, Due 09/25)9,735,797  9,541,502  9,245,360  
9,735,797  9,541,502  9,245,360  
Anchorage Capital CLO Ltd: Series 2013-1A (0.4%)*(3) (5) (8)
Structured FinanceStructured Secured Note - Class DR (LIBOR + 6.8%, 8.1% Cash, Acquired 03/20, Due 10/30)2,000,000  1,734,878  1,861,922  
2,000,000  1,734,878  1,861,922  
Anju Software, Inc. (2.6%)*(5) (7) (8)
Application SoftwareFirst Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.6% Cash, Acquired 02/19, Due 02/25)13,735,856  13,449,096  12,947,157  
13,735,856  13,449,096  12,947,157  
Apex Bidco Limited (1.1%)*(3) (5) (7)
Business Equipment & Services
First Lien Senior Secured Term Loan (GBP LIBOR + 6.50%, 7.2% Cash, Acquired 01/20, Due 01/27) (8)
5,181,990  5,344,752  4,868,108  
Subordinated Senior Unsecured Term Loan (8.0% PIK, Acquired 01/20, Due 07/27)621,838  641,273  584,714  
5,803,828  5,986,025  5,452,822  
Apex Tool Group, LLC (1.3%)*(5) (6) (8)
Industrial MachineryFirst Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.5% Cash, Acquired 08/18, Due 08/24)7,054,987  6,937,646  6,292,625  
7,054,987  6,937,646  6,292,625  
Applied Systems Inc. (1.0%)*(6) (8)
Application SoftwareFirst Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.3% Cash, Acquired 09/19, Due 09/24)4,937,940  4,965,194  4,791,481  
4,937,940  4,965,194  4,791,481  
AQA Acquisition Holding, Inc. (f/k/a SmartBear) (1.0%)*(5) (7) (8)
High Tech IndustriesSecond Lien Senior Secured Term Loan (LIBOR + 8.0%, 9.5% Cash, Acquired 10/18, Due 05/24)4,959,088  4,867,502  4,766,877  
4,959,088  4,867,502  4,766,877  
8

Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
June 30, 2020
Portfolio Company Industry
Type of Investment(1) (2)
Principal
Amount
CostFair
Value
Arch Global Precision LLC (2.2%)*(5) (7) (8)
Industrial MachineryFirst Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 04/19, Due 04/26)$11,558,622  $11,342,687  $10,684,104  
11,558,622  11,342,687  10,684,104  
Armstrong Transport Group (Pele Buyer, LLC ) (0.9%)*(5) (7) (8)
Air Freight & LogisticsFirst Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 06/19, Due 06/24)4,667,670  4,580,193  4,405,835  
4,667,670  4,580,193  4,405,835  
Ascend Learning, LLC (1.0%)*(6) (8)
IT Consulting & Other ServicesFirst Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.0% Cash, Acquired 09/18, Due 07/24)4,936,548  4,944,790  4,686,660  
4,936,548  4,944,790  4,686,660  
Ascensus Specialties, LLC
(1.4%)*(5) (7) (8)
Specialty ChemicalsFirst Lien Senior Secured Term Loan (LIBOR + 4.75%, 4.9% Cash, Acquired 09/19, Due 09/26)7,054,852  6,990,567  6,625,013  
7,054,852  6,990,567  6,625,013  
ASPEQ Heating Group LLC (1.8%)*(5) (7) (8)
Building Products, Air and HeatingFirst Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 11/19, Due 11/25)8,990,679  8,868,005  8,613,002  
8,990,679  8,868,005  8,613,002  
Auxi International (0.3%)*(3) (5) (7) (8)
Commercial FinanceFirst Lien Senior Secured Term Loan (EURIBOR + 5.5%, 5.5% Cash, Acquired 12/19, Due 12/26)1,572,410  1,512,116  1,481,336  
1,572,410  1,512,116  1,481,336  
Aveanna Healthcare Holdings, Inc. (0.9%)*(6) (8)
Health Care FacilitiesFirst Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.3% Cash, Acquired 10/18, Due 03/24)1,465,984  1,451,877  1,292,514  
First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 10/18, Due 03/24)3,511,966  3,512,767  3,109,565  
4,977,950  4,964,644  4,402,079  
AVSC Holding Corp. (0.7%)*(6) (8)
AdvertisingFirst Lien Senior Secured Term Loan (LIBOR + 3.25%, 4.25% Cash, Acquired 08/18, Due 03/25)4,917,072  4,894,839  3,515,706  
4,917,072  4,894,839  3,515,706  
Bass Pro Group, LLC (0.4%)*(5) (8)
General Merchandise StoresFirst Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.1% Cash, Acquired 03/20, Due 09/24)1,989,770  1,782,295  1,909,463  
1,989,770  1,782,295  1,909,463  
BDP International, Inc. (f/k/a BDP Buyer, LLC) (4.8%)*(5) (7) (8)
Air Freight & LogisticsFirst Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 12/18, Due 12/24)24,625,000  24,239,939  23,504,409  
24,625,000  24,239,939  23,504,409  
Beacon Pointe Advisors, LLC (0.1%)*(5) (7) (8)
Asset Manager & Custody BankFirst Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.4% Cash, Acquired 03/20, Due 03/26)634,773  613,132  612,386  
634,773  613,132  612,386  
Benify (Bennevis AB)
(0.3%)*(3) (5) (7) (8)
High Tech IndustriesFirst Lien Senior Secured Term Loan (STIBOR + 5.25%, 5.3% Cash, Acquired 07/19, Due 07/26)1,400,672  1,365,178  1,335,227  
1,400,672  1,365,178  1,335,227  
Berlin Packaging LLC (1.0%)*(6) (8)
Forest Products /ContainersFirst Lien Senior Secured Term Loan (LIBOR + 3.0%, 3.2% Cash, Acquired 08/18, Due 11/25)4,937,028  4,946,645  4,665,491  
4,937,028  4,946,645  4,665,491  
Blackhawk Network Holdings Inc. (0.9%)*(6) (8)
Data Processing & Outsourced ServicesFirst Lien Senior Secured Term Loan (LIBOR + 3.0%, 3.2% Cash, Acquired 11/18, Due 06/25)4,937,028  4,937,028  4,533,821  
4,937,028  4,937,028  4,533,821  
Boxer Parent Company Inc.
(0.4%)*(5) (8)
Software/ServicesFirst Lien Senior Secured Term Loan (LIBOR + 4.25%, 4.4% Cash, Acquired 03/20, Due 10/25)1,989,899  1,797,528  1,877,967  
1,989,899  1,797,528  1,877,967  
Brown Machine Group Holdings, LLC (1.0%)*(5) (7) (8)
Industrial EquipmentFirst Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 10/18, Due 10/24)5,286,022  5,236,738  4,867,702  
5,286,022  5,236,738  4,867,702  
Cadent, LLC (f/k/a Cross MediaWorks) (1.5%)*(5) (7) (8)
Media & EntertainmentFirst Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 09/18, Due 09/23)7,798,384  7,747,419  7,454,420  
7,798,384  7,747,419  7,454,420  
Carlyle Aviation Partners Ltd. (0.3%)*(5)
Structured FinanceStructured Secured Note, Series 2019-2 - Class A (3.4% Cash, Acquired 3/20, Due 10/39)948,595  858,707  855,977  
Structured Secured Note, Series 2018-2 - Class A (4.5% Cash, Acquired 03/20, Due 11/38)434,772  393,648  387,701  
1,383,367  1,252,355  1,243,678  
9

Barings BDC, Inc.
Unaudited Consolidated Schedule of Investments — (Continued)
June 30, 2020
Portfolio Company Industry
Type of Investment(1) (2)
Principal
Amount
CostFair
Value
Centralis Finco S.a.r.l. (0.4%)*(3) (5) (7) (8)
Diversified Financial ServicesFirst Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 5/20, Due 5/27)$2,006,413  $1,838,968  $1,961,000  
2,006,413  1,838,968  1,961,000  
Cineworld Group PLC (0.5%)*(3) (5) (8)
Leisure ProductsFirst Lien Senior Secured Term Loan (LIBOR + 2.25%, 3.3% Cash, Acquired 4/20, Due 2/25)2,990,793  1,954,589  2,238,878  
2,990,793  1,954,589  2,238,878  
Classic Collision (Summit Buyer, LLC) (0.6%)*(5) (7) (8)
Auto Collision Repair CentersFirst Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, Acquired 01/20, Due 01/26)3,921,456  3,630,038  3,145,392  
3,921,456  3,630,038  3,145,392  
CM Acquisitions Holdings Inc. (4.0%)*(5) (7) (8)
Internet & Direct Marketing
First Lien Senior Secured Term Loan (LIBOR + 4.5%, 5.5% Cash, Acquired 05/19, Due 05/25)20,434,481  20,115,062  19,398,331  
20,434,481  20,115,062  19,398,331  
CMT Opco Holding, LLC (Concept Machine) (1.1%)*(5) (7) (8)
DistributorsFirst Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 01/20, Due 01/25)5,450,744  5,349,552  5,007,434  
LLC Units (10,185 units, Acquired 01/20)407,915  299,118  
5,450,744  5,757,467  5,306,552  
Confie Seguros Holding II Co. (0.3%)*(5) (8)
Insurance Brokerage ServicesSecond Lien Senior Secured Term Loan (LIBOR + 8.5%, 8.7% Cash, Acquired 10/19, Due 11/25)2,500,000  2,360,112  1,677,075  
2,500,000  2,360,112  1,677,075  
Contabo Finco S.À R.L (0.3%)*(3) (5) (7) (8)
Internet Software and ServicesFirst Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 10/19, Due 10/26)1,361,657  1,307,535  1,269,399  
1,361,657  1,307,535  1,269,399  
Container Store Group, Inc., (The) (0.5%)*(6) (8)
RetailFirst Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 09/18, Due 09/23)2,889,648  2,891,578  2,326,166  
2,889,648  2,891,578  2,326,166  
Core & Main LP (0.8%)*(6) (8)
Building ProductsFirst Lien Senior Secured Term Loan (LIBOR + 2.75%, 3.8% Cash, Acquired 09/18, Due 08/24)3,959,391  3,973,700  3,762,649  
3,959,391  3,973,700  3,762,649  
CPI International Inc. (0.9%)*(6) (8)
Electronic ComponentsFirst Lien Senior Secured Term Loan (LIBOR + 3.5%, 4.5% Cash, Acquired 08/18, Due 07/24)4,722,788  4,728,810  4,431,534  
4,722,788  4,728,810  4,431,534  
Dart Buyer, Inc. (2.4%)*(3) (5) (7) (8)
Aerospace & DefenseFirst Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 04/19, Due 04/25)12,373,311  12,131,607  11,685,480  
12,373,311  12,131,607  11,685,480  
Davis Vision Incorporation
(0.8%)*(6) (8)
Managed Health CareFirst Lien Senior Secured Term Loan (LIBOR + 3.0%, 4.0% Cash, Acquired 08/18, Due 12/24)3,949,367  3,947,664  3,774,134  
3,949,367  3,947,664  3,774,134  
Diamond Sports Group, LLC (0.2%)* (5) (8)
BroadcastingFirst Lien Senior Secured Term Loan (LIBOR + 3.25%, 3.4% Cash, Acquired 03/20, Due 08/26)994,987  780,476  807,184  
994,987  780,476  807,184  
Dimora Brands, Inc. (0.6%)*(6) (8)
Building ProductsFirst Lien Senior Secured Term Loan (LIBOR + 3.5%, 4.6% Cash, Acquired 08/18, Due 08/24)2,938,760  2,941,402  2,812,040  
2,938,760  2,941,402  2,812,040  
Distinct Holdings, Inc. (1.5%)*(5) (7) (8)
Systems SoftwareFirst Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 04/19, Due 12/23)7,554,756  7,481,644  7,256,971  
7,554,756  7,481,644  7,256,971  
DreamStart Bidco SAS (d/b/a SmartTrade) (2.0%)*(3) (5) (7) (8)
Diversified Financial ServicesFirst Lien Senior Secured Term Loan (EURIBOR + 4.5%, 4.5% Cash, 1.8% PIK, Acquired 03/20, Due 03/27)9,870,524  9,344,248  9,620,125  
9,870,524  9,344,248  9,620,125  
Edelman Financial Center, LLC, The (1.0%)*(6) (8)
Investment Banking & BrokerageFirst Lien Senior Secured Term Loan (LIBOR + 3.0%, 3.2% Cash, Acquired 09/18, Due 07/25)4,937,343  4,970,893  4,702,820  
4,937,343  4,970,893  4,702,820  
Elmwood CLO: Series 2019-1A (0.6%)*(3) (5) (8)
Structured FinanceStructured Secured Note - Class E (LIBOR + 7.10%, 8.2% Cash, Acquired 03/20, Due 04/30)3,000,000  2,673,958  2,825,565  
3,000,000  2,673,958  2,825,565  
Endo International PLC
(1.5%)*(3) (5) (6) (8)
PharmaceuticalsFirst Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.0% Cash, Acquired 09/18, Due 04/24)7,838,384  7,892,372  7,387,677