Barings BDC, Inc. (BBDC)

Price$9.02Cached quoteAs of 2026-09-04 23:49 UTC

AI: Undervalued

Shares trade at a substantial discount to NAVAt $8.72 after hours, BBDC trades about 20.3% below its June 30, 2026 NAV of $10.94 per share and carries an annualized regular dividend yield near 11.9%.

June 30 net assets were $1.146 billion, while the current share price implies an equity market value near $913 million using approximately 104.7 million shares outstanding. NAV has softened from $11.09 at year-end 2025 to $11.02 in Q1 and $10.94 in Q2, including $0.28 per share of Q2 unrealized depreciation. The discount provides a valuation cushion if credit losses and NAV erosion remain contained, which supports an Undervalued assessment despite the risks inherent in leveraged private credit.

Diversified senior-secured portfolio retains generally solid credit metricsBarings BDC is an externally managed BDC focused primarily on income-producing senior secured loans to private middle-market borrowers, with a $2.46 billion investment portfolio at June 30.

Q2 materials describe 342 issuers, approximately 76% secured debt, 70% first-lien exposure and 93% floating-rate exposure. Business services, banking and finance, and high-tech were the largest broad industry buckets, so diversification by borrower is strong but meaningful sector concentration remains. Eleven portfolio companies were on non-accrual at June 30 with $13.7 million of fair value, only 0.6% of the portfolio and 0.2% excluding assets protected by the new Sierra credit support agreement. Internal risk ratings placed 82% of rated portfolio fair value in Categories 1-2, 12% in Category 3 and 6% in Categories 4-5.

Regular dividend remains covered, but the cushion is modestThe $0.26 quarterly dividend is currently supported by net investment income, although declining portfolio yields and credit deterioration could narrow coverage.

Q2 2026 net investment income was $0.28 per share versus the $0.26 dividend, and first-half NII totaled $0.53 per share versus $0.52 of regular dividends. For FY2025, NII was $1.12 per share versus $1.04 of regular dividends, although total distributions reached $1.19 after special dividends. FY2025 revenue declined to $279.2 million from $286.2 million and net income fell to $101.9 million from $110.3 million; operating cash flow was $160.5 million against $125.2 million of dividends. At the current price the regularized $1.04 annual dividend yields roughly 11.9%, attractive but sensitive to interest-rate compression and credit costs.

Leverage is manageable but a major 2026 refinancing is the key near-term riskBDC leverage remains within management's operating range, but $350 million of low-cost unsecured notes mature on November 23, 2026.

At June 30, principal debt was $1.410 billion, debt-to-equity was 1.23x and adjusted net debt-to-equity was 1.18x. Cash and foreign currencies totaled $69.9 million, including $18.3 million restricted, while $277.2 million was drawn on an $822.2 million secured credit facility and unsecured notes totaled $1.133 billion. The $350 million November 2026 notes carry only a 3.30% coupon, so refinancing at materially higher rates could pressure future NII. The FY2025 baseline also showed $66.8 million of cash and net cash of negative $1.137 billion. Liquidity and the $67 million Sierra payment mitigate immediate funding pressure, but leverage and refinancing remain central valuation risks.

AI: News

Q2 earnings covered the dividend while NAV declined modestlyBarings reported $0.28 per share of Q2 net investment income, declared another $0.26 dividend and ended June with NAV of $10.94 per share.

Total investment income was $65.2 million and the investment portfolio reached $2.459 billion. NAV fell $0.08 sequentially as unrealized depreciation outweighed realized gains and excess NII. During Q2 the company made $172.1 million of investments in 21 new portfolio companies plus $90.0 million in existing borrowers. After quarter-end it made about $107.5 million of additional commitments, with $73.6 million already funded, including $72.4 million of first-lien senior secured debt.

Sierra restructuring delivered $67 million for redeploymentBarings LLC paid BBDC $67 million to terminate the original Sierra credit support agreement early and replace it with narrower protection for two remaining legacy portfolio companies.

The original agreement had provided up to $100 million of protection on investments inherited through the Sierra Income merger. The June transaction crystallized support on realized and impaired positions, giving BBDC cash that management can redeploy into income-producing assets. A new targeted agreement provides up to approximately $11 million of support on the two remaining Sierra legacy companies. The transaction improves current liquidity and earnings potential but leaves less broad future credit protection than the original arrangement.

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

No reported data

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$279.2M	$286.2M	$289.2M	$219.1M	$135.3M	$71.0M
Operating expenses	$7.8M	$9.8M	$10.0M	$9.9M	—	—
Net income	$101.9M	$110.3M	$128.0M	$4.7M	$77.7M	$8.2M
Net profit margin	36.50%	38.54%	44.26%	2.14%	57.40%	11.51%
Basic EPSper basic share	$1.12	$1.24	$1.20	$1.12	$0.90	$0.64
Diluted EPSper diluted share	$1.12	$1.24	$1.20	$1.12	$0.90	$0.64

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

13.03%of listed shares

BARINGS LLC13.64M shares · Jun 30, 2026

View holders

Top 20 reported holders of BBDC
Holder	% owned
BARINGS LLC	13.03%13.64M shares
PRIVATE MANAGEMENT GROUP INC	4.56%4.78M shares
ARES MANAGEMENT LLC	3.98%4.16M shares
Cresset Asset Management, LLC	2.43%2.55M shares
VAN ECK ASSOCIATES CORP	2.21%2.31M shares
UBS Group AG	2.01%2.11M shares
FRANKLIN RESOURCES INC	1.30%1.37M shares
Russell Investments Group, Ltd.	1.18%1.23M shares
TWO SIGMA INVESTMENTS, LP	1.08%1.13M shares
DIMENSION CAPITAL MANAGEMENT LLC	0.97%1.02M shares
MORGAN STANLEY	0.92%960.58K shares
Focus Partners Wealth	0.87%907.62K shares
Legal & General Group Plc	0.84%879.82K shares
WELLS FARGO & COMPANY/MN	0.73%760.56K shares
Muzinich & Co., Inc.	0.68%714.96K shares
BANK OF AMERICA CORP /DE/	0.66%690.78K shares
RAYMOND JAMES FINANCIAL INC	0.65%682.82K shares
Sumitomo Mitsui Trust Group, Inc.	0.55%577.41K shares
BlackRock, Inc.	0.49%509.22K shares
Thrivent Financial for Lutherans	0.45%475.83K shares

Percentages use 104.71M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys16$912.9K disclosed value

Sells (SEC code S)4$336.4K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 3, 2026Form 4	McDonnell ThomasChief Executive Officer	BuyCommon Stock ("Shares")	10.0K	$8.27	$82.7K	26.0K
Dec 9, 2025Form 4	BYERS STEPHEN RDirector	SellCommon Stock ("Shares")	5.7K	$8.98	$50.9K	64.6K
Dec 9, 2025Form 4	BYERS STEPHEN RDirector	BuyCommon Stock ("Shares")	6.8K	$8.97	$60.6K	70.2K
Jun 6, 2025Form 4	Murray Elizabeth A.CFO and COO and PAO	BuyCommon Stock ("Shares")	3.4K	$8.84	$30.1K	25.4K
Jun 6, 2025Form 4	BYERS STEPHEN RDirector	BuyCommon Stock ("Shares")	8.7K	$8.89	$77.3K	59.7K