Barings BDC, Inc.
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Range $10 – $10
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About the company
Barings BDC, Inc. (NYSE: BBDC) functions as a publicly traded, externally managed Business Development Company (BDC), operating under the regulatory framework of the Investment Company Act of 1940. Its investment strategy primarily involves providing capital through various debt instruments, such as senior secured loans, first and second lien debt, unitranche facilities, and subordinated debt, alongside equity co-investments.
- CEO
- Thomas McDonnell
- IPO
- 2007
- Employees
- 2
- HQ
- Charlotte, NC, US
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- Market Cap
- $984.24M
- P/E
- 11.33
- Fwd P/E
- 9.04
- PEG
- -0.84
- P/S
- 3.83
- P/B
- 0.86
- EV/EBITDA
- 15.17
- Div Yield
- 12.13%
- Gross Margin
- 76.17%
- Op Margin
- 58.59%
- Net Margin
- 33.94%
- ROE
- 7.53%
- ROIC
- 5.62%
Latest fiscal year · YoY change
- Revenue
- $248.84M+19.0%
- Gross Profit
- $184.14M+49.0%
- Op Income
- $211.96M
- Net Income
- $101.92M-7.6%
- EPS
- $0.97-6.7%
- OCF Growth
- +36.2%
- FCF Growth
- +36.2%
- 52W High
- $9.92
- 52W Low
- $7.96
- 50D MA
- $8.57
- 200D MA
- $8.73
- Beta
- 0.66
- RSI (14)
- 67
- Avg Volume
- 733.02K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Barings BDC posted a solid second quarter with NII above the dividend, modest NAV pressure, improved credit quality, and a cleaner balance sheet after terminating the legacy Sierra support agreement.· August 6, 2026
- NII was $0.28 per share versus a $0.26 dividend, and the Board kept the third-quarter dividend at $0.26.
- NAV fell modestly to $10.94 from $11.02, mainly due to net realized/unrealized losses and marks on watch-list investments.
- The portfolio grew to about $2.46 billion at fair value, with $262 million of originations and $167 million of sales/repayments for about $95 million of net originations.
- Credit metrics improved quarter over quarter: nonaccruals not covered by the CSA were 0.2% of fair value and total nonaccruals were 0.6%.
- The company terminated the legacy Sierra credit support agreement, freeing about $67 million for redeployment and replacing it with a smaller $11 million CSA.
Barings BDC reported net investment income of $0.28 per share for the second quarter, above the quarterly dividend of $0.26 per share by about $0.02. Net asset value per share was $10.94 at June 30 versus $11.02 at March 31. The company originated $262 million of investments, had $167 million of sales and repayments, and ended with roughly $95 million of net originations; the investment portfolio increased to approximately $2.46 billion at fair value. The weighted average yield on debt and other income-producing securities rose to 10.2% from 10.1% in the prior quarter. Management described total nonaccruals at 0.6% of the portfolio at fair value and nonaccruals not covered by the CSA at 0.2%. Guidance-wise, the Board declared a third-quarter dividend of $0.26 per share, unchanged, and management said it is actively evaluating refinancing options for the $350 million unsecured notes due in November 2026 while aiming to preserve flexibility.
Tom McDonnell framed the quarter as evidence of a durable earnings profile, saying the portfolio’s floating-rate assets and disciplined deployment supported results. He emphasized that BBDC is continuing to move away from legacy Sierra assets and toward a more Barings-originated portfolio, with the Sierra CSA termination simplifying the structure and freeing capital. His tone was constructive and selective: he argued the current market is better for disciplined lenders and said BBDC is well positioned because of underwriting discipline, documentation, funding flexibility, and focus on senior secured middle-market lending.
Elizabeth Murray said the quarter benefited from portfolio growth and elevated dividend income from certain investments, producing NII of about $0.28 per share and undistributed taxable spillover income of about $0.84 per share. She noted NAV declined modestly because of net realized and unrealized losses, including restructuring activity and legacy investments, partially offset by income and marks. On the balance sheet, net leverage was 1.18x, within the 0.9x to 1.25x target range, and about 80% of the debt capital structure remains unsecured. She also highlighted the $350 million unsecured notes due in November 2026 and said the company is in active dialogue on refinancing alternatives.
Analysts asked why deal activity was strong versus some larger peers and whether the pipeline will continue. Management pointed to a full pipeline, selective underwriting, and especially robust Capital Solutions activity, where they said pricing is 200 to 300 basis points wider than some private credit deals for what they view as equivalent risk. On pacing, management said repayments and originations tend to move together and that third-quarter activity looks consistent with the second quarter, though they would not forecast much beyond that. In software, management said there is a clear pricing premium because many lenders are avoiding the sector, and they said BBDC is not avoiding it but remains selective and sees relative-value opportunity.
The company generated earnings above the dividend, kept the dividend steady, and maintained leverage comfortably inside its target range. Management also sees a better deployment backdrop, with wider spreads, improved lender economics, and more opportunity in Capital Solutions and select software credits.
NAV declined and the quarter included realized and unrealized losses tied to restructuring and legacy assets, showing there is still cleanup work to do. The company also faces a $350 million unsecured note maturity in November 2026, and management said the timing and broader private equity transaction velocity remain hard to predict.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 99.4%
- Shares Outstanding
- 104.71M
- Float Shares
- 104.06M
of shares held by institutions
212 13F filers
Buy/sell ratio 0.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Barings LLC | 13.64M | 0 |
| Private Management Group Inc | 4.78M | ▲ 479.54K |
| Ares Management LLC | 4.16M | ▲ 534.15K |
| Cresset Asset Management, LLC | 2.55M | ▲ 220.94K |
| Van Eck Associates Corp | 2.31M | ▲ 484.65K |
| Ubs Group AG | 2.11M | ▲ 522.85K |
| Franklin Resources Inc | 1.37M | ▲ 395.02K |
| Russell Investments Group, Ltd. | 1.23M | ▲ 386.74K |
| Two Sigma Investments, LP | 1.13M | ▲ 150.65K |
| Dimension Capital Management LLC | 1.02M | ▲ 35.42K |
| Morgan Stanley | 960.58K | ▼ 37.24K |
| Colony Group, LLC | 907.62K | ▼ 47.57K |
Held by 22 ETFs
Biggest fund positions in BBDC by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Jun 3, 26 | McDonnell Thomas | buy | 10,000 |
| Jan 1, 26 | McDonnell Thomas | other | 0 |
| Dec 9, 25 | BYERS STEPHEN R | buy | 6,761 |
| Dec 9, 25 | BYERS STEPHEN R | sell | 5,671 |
| Nov 6, 25 | Verwholt Daniel | other | 0 |
| Jun 6, 25 | Murray Elizabeth A. | buy | 3,400 |
| Jun 6, 25 | BYERS STEPHEN R | buy | 8,700 |
| May 19, 25 | Freund Matthew | buy | 3,520 |
| May 19, 25 | Lloyd Eric J | buy | 7,100 |
| May 19, 25 | Lloyd Eric J | buy | 27,275 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our BBDC coverage
Recent articles, reports, and earnings notes.
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