Form 8-K - Current report

 

 

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): November 13, 2024

 

Kayne Anderson BDC, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware		814-01363		83-0531326
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

717 Texas Avenue, Suite 2200, Houston, TX		77002
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code: 1 [phone]

 

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 (see General Instruction A.2. below):

 

☐	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))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001		KBDC		NYSE

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

 

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 2.02. Results of Operations and Financial Condition.

 

On November 13, 2024, Kayne Anderson BDC, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2024. The text of the press release is included as Exhibit 99.1 to this Form 8-K.

 

On November 14, 2024, the Company will host a conference call to discuss its financial results for the third quarter ended September 30, 2024. In connection therewith, the Company provided an earnings presentation on its website at https://www.kaynebdc.com. A copy of the earnings presentation is attached hereto as Exhibit 99.2 to this Form 8-K.

 

The information disclosed under this Item 2.02, including Exhibit 99.1 and Exhibit 99.2 hereto, is being “furnished” and shall not be deemed “filed” by the Company 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, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 7.01. Regulation FD Disclosure.

 

On November 13, 2024, the Company issued a press release, included herewith as Exhibit 99.1, announcing the declaration of a fourth quarter 2024 dividend of $0.40 per share, which will be payable on January 15, 2025 to stockholders of record as of December 31, 2024.

 

The information disclosed under this Item 7.01, including Exhibit 99.1 hereto, is being “furnished” and shall not be deemed “filed” by the Company 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, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.  

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit Number		Description
99.1		Press Release of Kayne Anderson BDC, Inc., dated November 13, 2024.
99.2		Kayne Anderson BDC, Inc. Third Quarter 2024 Earnings Presentation.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

1

 

 

SIGNATURE

 

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.

 

	KAYNE ANDERSON BDC, INC.
Date: November 13, 2024	By:	/s/ Terry A. Hart
	Name:	Terry A. Hart
	Title:	Chief Financial Officer and Treasurer

 

 

2

Exhibit 99.1

 

 

 

Kayne Anderson BDC, Inc. Announces September 30, 2024 Financial Results and Declares Fourth Quarter 2024 Dividend of $0.40 Per Share

 

CHICAGO--(BUSINESS WIRE)-- Kayne Anderson BDC, Inc. (NYSE: KBDC) (“KBDC or the Company”), a business development company externally managed by its investment adviser, KA Credit Advisors, LLC, today announced its financial results for the third quarter ended September 30, 2024.

 

“We are pleased to report strong origination activity during the third quarter,” said Doug Goodwillie, Co-Chief Executive Officer. “Origination volumes have picked-up substantially during 2024 and we see this pace continuing based on the current level of private equity investment activity.”

 

“Our portfolio, which is diversified by end-market and industry, continues to perform well for our shareholders,” said Ken Leonard, Co-Chief Executive Officer. “The stable industries we focus on have produced attractive debt financing opportunities and a portfolio with lower leverage and higher interest coverage.”  

 

Financial Highlights for the Quarter Ended September 30, 2024

 

●

Net investment income of $37.1 million, or $0.52 per share;

 

●

Net asset value of $16.70 per share, an increase from $16.57 per share as of June 30, 2024, primarily the result of excess net investment income over the regular dividend

 

●

New private credit and equity investment commitments of $182.6 million, fundings of $184.6 million and sales and repayments of $82.8 million, resulting in a net funded private credit and equity investment increase of $101.8 million;

 

●

Net repayments of broadly syndicated loans of $2.2 million; and

 

●

The Company’s Board of Directors (the “Board”) declared a regular dividend of $0.40 per share, to be paid on January 15, 2025 to stockholders of record as of December 31, 2024.

 

Selected Financial Highlights

 

		As of
(in thousands, expect per share data)		September 30, 2024				June 30, 2024
Investment portfolio, at fair value		$	1,943,439			$	1,847,058
Total assets		$	2,028,245			$	1,909,850
Total debt outstanding, at principal		$	788,000			$	622,000
Net assets		$	1,186,205			$	1,178,176
Net asset value per share		$	16.70			$	16.57
Total debt-to-equity ratio			0.66x				0.53x

 

		For the quarter ended
		September 30, 2024				June 30, 2024
Net investment income per share		$	0.52			$	0.51
Net realized and unrealized gains (losses) per share		$	0.01			$	(0.05	)
Earnings per share		$	0.53			$	0.46
Regular dividend per share		$	0.40			$	0.40
Special dividend per share		$	-			$	-

 

 

 

 

Results of Operations

 

Total investment income for the quarter ended September 30, 2024 was $57.8 million, as compared to $52.5 million for the quarter ended June 30, 2024. The increase was driven by the additions to the portfolio during the third quarter and the full quarter impact of purchases made in the second quarter.

 

Net investment income for the quarter ending September 30, 2024 was $37.1 million or $0.52 per share, compared to $34.4 million or $0.51 per share for the quarter ended June 30, 2024. Net expenses for the third quarter were $20.8 million compared to $18.1 million for the prior quarter. The increase was primarily due to higher interest expense as a result of higher leverage during the quarter.

 

For the quarter ended September 30, 2024, the net change in unrealized gains was $0.5 million. The unrealized gains for the quarter were primarily driven by new upfront fees for originations partially offset by changes in the fair value of certain investments and quarterly amortization. For the quarter, there were no realized gains (losses).

 

Portfolio and Investment Activity

 

		As of
($ in thousands)		September 30, 2024				June 30, 2024
Investments at fair value		$	1,943,439			$	1,847,058
Number of portfolio companies			110				106
Average portfolio company investment size		$	17,668			$	17,425
Asset class:
First lien debt			98.0	%			97.8	%
Subordinated debt			0.9	%			1.2	%
Equity			1.1	%			1.0	%
Non-accrual debt investments:
Non-accrual investments at fair value		$	19,229			$	18,897
Non-accrual investments as a percentage of debt investments at fair value			1.0	%			1.0	%
Number of investments on non-accrual			2				2
Interest rate type:
Percentage floating-rate			100.0	%			100.0	%
Percentage fixed-rate			0.0	%			0.0	%
Yields (at fair value):
Weighted average yield on private middle market loans			11.9	%			12.3	%
Weighted average yield on broadly syndicated loans			7.8	%			8.3	%
Weighted average yield on total debt portfolio			11.3	%			11.7	%
Investment activity during the quarter ended:
Gross new investment commitments		$	182,559	(1)		$	171,836	(2)
Principal amount of investments funded		$	184,566	(1)		$	166,161	(2)
Principal amount of investments sold or repaid		$	(85,009	)(1)		$	(98,968	)(2)
Net principal amount of investments funded		$	99,557			$	67,193

 

 

(1)

For the quarter ending September 30, 2024, broadly syndicated loans represent $0 of new investment commitments, $0 of investments funded and $2,200 of investments sold or repaid.

 

(2)

For the quarter ending June 30, 2024, broadly syndicated loans represent $30,000 of new investment commitments, $30,000 of investments funded and $58,500 of investments sold or repaid.

 

2

 

 

Liquidity and Capital Resources

 

As of September 30, 2024, the Company had $75 million senior unsecured notes outstanding, $713 million borrowed under its credit facilities and cash and cash equivalents of $61.8 million (including short-term investments). As of that date, the Company had $437.0 million of undrawn commitments available on its credit facilities (subject to borrowing base restrictions and other conditions).

 

As of September 30, 2024, the Company’s debt-to-equity ratio was 0.66x and its asset coverage ratio was 251%. The Company targets a debt-to-equity ratio of 1.0x to 1.25x (which equates to asset coverage of 200% to 180%). The Company is currently below its target but expects to continue to grow its private credit portfolio over coming quarters to achieve its targeted leverage.

 

Recent Developments

 

●

On November 6, 2024, the Board of Directors of the Company declared a regular dividend to common stockholders in the amount of $0.40 per share. The dividend will be paid on January 15, 2025 to stockholders of record as of the close of business on December 31, 2024.

 

Conference Call Information

 

KBDC will host a conference call at 10:00 am ET on Thursday, November 14, 2024, to review its financial results. All interested parties are invited to participate using the following telephone dial-in or the webcast details:

 

Telephone Dial-in

 

●

Domestic: 800-579-2543

 

●

International: [phone]

 

●

Conference ID: KBDC3Q

 

Webcast Link

 

●

https://events.q4inc.com/attendee/302947060

 

To avoid potential delays, please join at least 10 minutes prior to the start of the earnings call. A telephone replay will also be available by dialing 800-839-2383(domestic) and [phone](international). The replay will be available until November 21, 2024.

 

3

 

 

Kayne Anderson BDC, Inc.

Consolidated Statements of Assets and Liabilities

(amounts in 000’s, except share and per share amounts)

 

		September 30, 2024				December 31, 2023
Assets:		(Unaudited)
Investments, at fair value:
Non-controlled, non-affiliated investments (amortized cost of $1,906,348 and $1,343,223)		$	1,931,243			$	1,363,498
Non-controlled, affiliated investments (amortized cost of $15,438 and $0, respectively)			12,196				-
Short-term investments (amortized cost of $22,670 and $12,802)			22,670				12,802
Cash and cash equivalents			39,083				34,069
Receivable for principal payments on investments			501				104
Interest receivable			22,391				12,874
Prepaid expenses and other assets			161				319
Total Assets		$	2,028,245			$	1,423,666
Liabilities:
Corporate Credit Facility (Note 6)		$	221,000			$	234,000
Unamortized Corporate Credit Facility issuance costs			(1,127	)			(1,715	)
Revolving Funding Facility (Note 6)			409,000				306,000
Unamortized Revolving Funding Facility issuance costs			(5,277	)			(2,019	)
Revolving Funding Facility II (Note 6)			83,000				70,000
Unamortized Revolving Funding Facility II issuance costs			(1,411	)			(1,805	)
Subscription Credit Agreement (Note 6)			-				10,750
Unamortized Subscription Credit Facility issuance costs			-				(41	)
Notes (Note 6)			75,000				75,000
Unamortized notes issuance costs			(696	)			(851	)
Payable for investments purchased			17,397				-
Shares repurchased payable (Note 7)			10				-
Distributions payable			28,420				22,050
Management fee payable (Note 3)			3,573				2,996
Incentive fee payable (Note 3)			-				14,195
Accrued expenses and other liabilities			13,151				11,949
Accrued excise tax expense			-				101
Total Liabilities		$	842,040			$	740,610
Commitments and contingencies (Note 8)
Net Assets:
Common Shares, $0.001 par value; 100,000,000 shares authorized; 71,047,779 and 41,603,666 as of September 30, 2024 and December 31, 2023, respectively, issued and outstanding		$	71			$	42
Additional paid-in capital			1,153,001				669,990
Total distributable earnings (deficit)			33,133				13,024
Total Net Assets		$	1,186,205			$	683,056
Total Liabilities and Net Assets		$	2,028,245			$	1,423,666
Net Asset Value Per Common Share		$	16.70			$	16.42

 

4

 

 

Kayne Anderson BDC, Inc.

Consolidated Statements of Operations

(amounts in 000’s, except share and per share amounts)
(Unaudited)

 

		For the three months ended								For the nine months ended
		September 30,								September 30,
		2024				2023				2024				2023
Income:
Investment income from investments:
Interest income from non-controlled, non-affiliated investments		$	57,541			$	41,041			$	155,015			$	117,960
Interest income from non-controlled, affiliated investments			-				-				754				-
Dividend income			278				156				997				349
Total Investment Income			57,819				41,197				156,766				118,309
Expenses:
Management fees			4,764				2,905				12,537				8,438
Incentive fees			5,605				2,371				12,345				6,929
Interest expense			16,069				13,871				44,964				38,396
Professional fees			403				189				1,042				482
Directors fees			158				147				463				464
Other general and administrative expenses			563				345				1,542				1,216
Total Expenses			27,562				19,828				72,893				55,925
Less: Management fee waiver (Note 3)			(1,191	)			-				(1,662	)			-
Less: Incentive fee waiver (Note 3)			(5,605	)			-				(9,714	)			-
Net Expenses			20,766				19,828				61,517				55,925
Net Investment Income (Loss)			37,053				21,369				95,249				62,384
Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Non-controlled, non-affiliated investments			-				-				(138	)			-
Total net realized gains (losses)			-				-				(138	)			-
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments			1,031				(7,497	)			3,323				(8,103	)
Non-controlled, affiliated investments			(528	)			-				(1,943	)			-
Total net change in unrealized gains (losses)			503				(7,497	)			1,380				(8,103	)
Total realized and unrealized gains (losses)			503				(7,497	)			1,242				(8,103	)
Net Increase (Decrease) in Net Assets Resulting from Operations		$	37,556			$	13,872			$	96,491			$	54,281
Per Common Share Data:
Basic and diluted net investment income per common share		$	0.52			$	0.53			$	1.55			$	1.62
Basic and diluted net increase in net assets resulting from operations		$	0.53			$	0.34			$	1.57			$	1.41
Weighted Average Common Shares Outstanding - Basic and Diluted			71,083,885				40,499,327				61,321,163				38,461,385

 

5

 

 

About Kayne Anderson BDC, Inc.

 

Kayne Anderson BDC, Inc. is a business development company (“BDC”) that invests primarily in first lien senior secured loans, with a secondary focus on unitranche and split-lien loans to middle market companies. KBDC is externally managed by its investment adviser, KA Credit Advisors, LLC, an indirect controlled subsidiary of Kayne Anderson Capital Advisors, L.P., a prominent alternative investment management firm. KBDC has elected to be regulated as a BDC under the Investment Company Act of 1940, as amended (“1940 Act”). KBDC’s investment objective is to generate current income and, to a lesser extent, capital appreciation. For more information, please visit www.kaynebdc.com.

 

Forward-looking Statements

 

This press release may contain “forward-looking statements” that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about KBDC, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond KBDC’s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in KBDC’s filings with the SEC. All forward-looking statements speak only as of the date of this press release. KBDC does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.

 

Contacts:

 

Investor Relations

[e-mail]

 

6

 

Exhibit 99.2

 

KAYNEBDC.COM KAYNE ANDERSON BDC, INC. EARNINGS PRESENTATION Third Quarter 2024

 

 

2 Disclaimer and Forward - Looking Statement This presentation may contain “forward - looking statements” that involve substantial risks and uncertainties . Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon . These forward - looking statements are not historical facts, but rather are based on current expectations, estimates and projections about Kayne Anderson BDC, Inc . (“KBDC”), its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions . Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions are intended to identify forward - looking statements . These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond KBDC’s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward - looking statements including, without limitation, the risks, uncertainties and other factors identified in KBDC’s filings with the SEC . All forward - looking statements speak only as of the date of this presentation . KBDC does not undertake any obligation to update or revise any forward - looking statements or any other information contained herein, except as required by applicable law .

 

 

EXECUTIVE SUMMARY

 

 

4 Executive Summary Quarterly Highlights 1 Annualized dividend yield is calculated by dividing the declared dividend per share by the net asset value per share at the e nd of the quarter and annualizing such amount over four quarterly periods. There assurance that the same dividend yield will be achieved. 2 Actual yields earned over the life of investments could be materially different from the yields presented herein. 3 Excludes investments in broadly syndicated loans; as of September 30, 2024, KBDC held $270 million of such investments (fair value), representing ~14% of total fair market value of investment s. 4 Excludes investments on watchlist. 5 Calculated as a percentage of total debt investments at fair value. Financial Results Portfolio Balance Sheet & Liquidity Recent Events » Net investment income per share: $0.52 » Net asset value per share: $16.70 » Annualized ROE: 12.5% on net investment income » 3Q’24 dividend per share: $0.40 regular (annualized dividend yield of ~9.6%) (1) » Total fair value was approximately $1.94 billion invested in 110 companies » Weighted average yield at amortized cost of debt investments was 11.4% (2) » 98% first - lien portfolio » Weighted average and median EBITDA of borrowers of $59.6 million (3)(4) and $33.7 million (3)(4) , respectively » Average position size of 0.9% with 10 largest positions representing 18.6% of the portfolio (5) » 1.0% of investments (based on fair value) on non - accrual » Outstanding debt balance was $788 million; quarter - end debt - to - equity ratio was 0.66x » Total liquidity of $499 million, including cash of $62 million and undrawn committed debt capacity of $437 million » $100.0M Share Repurchase Plan: Repurchased 68,680 shares / ~1.1M through September 30, 2024 » Declared 4Q regular distribution of $0.40 per share on November 6, 2024 » Special distribution of $0.10 per share, announced in conjunction with the IPO, will be paid on December 20, 2024 to investors of record as of December 5, 2024

 

 

5 Executive Summary Investment Highlights » Lending philosophy focused on core middle market in defensive, stable industries » Experienced, long - tenured leadership and investment team » High - quality sourcing and execution model with high degree of selectivity » Diversified, conservative portfolio with focus on senior secured, first lien loans » Active portfolio management and risk monitoring » Focus on shareholder alignment

 

 

CONFIDENTIAL 6 » Scaled, differentiated BDC via focus on core middle market ($10 - $50+ million of EBITDA) » Consistent adherence to our value lending strategy: (i) conservative structures (first lien, lower leverage) in (ii) private equity - backed businesses with (iii) financial maintenance covenants generating (iv) attractive yields KBDC Portfolio Overview At - a - Glance 1 Excludes investments in broadly syndicated loans and opportunistic investments; as of September 30, 2024, KBDC held $270 mill ion of such investments (fair value), representing ~14% of total fair market value of investments. 2 Weighted average yield of amortized cost of debt investments. 3 Excludes investments on watchlist. 4 NII yield is calculated by dividing annualized 3Q NII per share by NAV per share at September 30, 2024. $1.94bn Portfolio Fair Value ($2.14bn commitments) 100% Financial Maint. Covenants (1) ~98% First Lien Senior Secured 99% PE Sponsored Companies (1) 110 Portfolio Companies 3.1x Wtd. Avg. Interest Coverage (3) ~11.4% Wtd. Avg. Portfolio Yield (2) 4.2x Wtd. Avg. Net Leverage (3) KBDC OVERVIEW (SEPTEMBER 30, 2024) 1.0% FV Debt on Non - Accrual 12.5% NII Yield (4)

 

 

7 Executive Summary Key Financial Highlights 1 Prior to 2024, the Company did not distinguish between regular and supplemental distributions and generally distributed subst ant ially all its income on a quarterly basis. » KBDC’s dividend yield is ~ 11 . 4 % inclusive of the three declared special distributions of $ 0 . 10 per share payable on December 20 , 2024 , March 18 , 2025 and June 24 , 2025 » As of September 30 , 2024 , KBDC had undistributed net investment income of approximately $ 0 . 32 per share ($000 except per share data) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Net Investment Income $0.52 $0.51 $0.52 $0.54 $0.53 Net Realized and Unrealized Gains (Losses) $0.01 ($0.05) $0.09 $0.01 ($0.19) Net Income (loss) $0.53 $0.46 $0.61 $0.55 $0.34 Net Asset Value $16.70 $16.57 $16.63 $16.42 $16.40 Annualized ROE (on Net Investment Income) 12.5% 12.3% 12.5% 13.2% 12.9% Annualized ROE (on Net Income) 12.7% 11.1% 14.7% 13.4% 8.3% Regular Distributions (1) $0.40 $0.40 $0.40 $0.53 $0.53 Supplemental Distributions - - - - - Special Distributions - - - - - Total Distributions $0.40 $0.40 $0.40 $0.53 $0.53 Regular Distribution Yield (1) 9.6% 9.7% 9.6% 12.9% 12.9% Supplemental Distribution Yield - - - - - Special Distribution Yield - - - - - Total Distribution Yield 9.6% 9.7% 9.6% 12.9% 12.9% Total Debt $788,000 $622,000 $659,000 $695,750 $598,000 Net Assets $1,186,205 $1,178,176 $811,557 $683,056 $680,726 Debt-to-Equity at Quarter End 0.66x 0.53x 0.81x 1.02x 0.88x As of Date and for the Three Months Ended

 

 

PORTFOLIO OVERVIEW

 

 

9 Portfolio Overview Key Statistics 1 1Q’24 , 2Q’24, and 3Q’24 includes investments in broadly syndicated loans; as of 3Q’24, KBDC held $270 million of such invest men ts (fair value) across 22 borrowers. Quarters prior to 1Q’24 presented above included no investments in broadly syndicated loans. KEY PORTFOLIO STATISTICS ($ IN MILLIONS) (1) 30-Sep-24 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Portfolio Highlights Funded Investments at Fair Value $1,943 $1,847 $1,784 $1,363 $1,278 Number of Portfolio Companies 110 106 103 76 72 Average Position Size at Fair Value ($) $17.7 $17.4 $17.3 $17.9 $17.8 Average Position Size at Fair Value (%) 0.9% 0.9% 1.0% 1.3% 1.4% Portfolio Composition (at fair value) First Lien 98% 98% 98% 97% 97% Second Lien 0% 0% 0% 0% 0% Subordinated 1% 1% 1% 2% 2% Equity 1% 1% 1% 1% 1% Loans by Interest Rate Type % Floating Rate Debt Investments 100.0% 100.0% 100.0% 100.0% 100.0% % Fixed Rate Debt Investments 0.0% 0.0% 0.0% 0.0% 0.0% Asset Level Yields (at fair value) Weighted Average Yield on Private Credit Loans 11.9% 12.3% 12.4% 12.5% 12.4% Weighted Average Yield on Broadly Syndicated Loans 7.8% 8.3% 8.4% N/A N/A Weighted Average Yield on Debt Investments 11.3% 11.7% 11.7% 12.5% 12.4% Non-accrual Debt Investments (at fair value) Non-accrual Investments $19.2 $18.9 $7.0 $5.9 $13.9 Non-accrual Investments as a % of Debt Investments 1.0% 1.0% 0.4% 0.4% 1.1% Number of Investments on Non-accrual 2 2 1 1 1

 

 

10 Portfolio Overview Diversity (As of September 30, 2024) Note: Please see the Company’s filings with the SEC for more information about the Company’s portfolio 1 Calculated as a percentage of total debt investments at fair value. 2 In some instances, we have disclosed the borrower’s DBA name. INDUSTRY CONCENTRATION BORROWER CONCENTRATION (1)(2) Average Position Size: 0.9% Suave 2.2% M2S 2.0% Keany 1.9% American Equipment 1.9% Vitesse 1.8% EIS 1.8% Peak Technologies 1.8% Genuine Cable Group 1.8% EnviroTech 1.7% FreshEdge 1.7% All Others 81.4% 110 Borrowers Trading Companies & Distributors 14.6% Food Products 9.7% Commercial Services & Supplies 7.8% Containers and Packaging 7.7% Health Care Providers & Services 6.8% Aerospace & Defense 4.9% Professional Services 4.8% Leisure Products 3.9% Personal Care Products 3.8% Automobile Components 3.6% All Others (23 Total) 32.4%

 

 

11 Portfolio Overview Asset Mix GROSS NEW COMMITMENTS ($ IN MILLIONS) (1) ASSET MIX AT END OF PERIOD (2) » KBDC committed approximately $183 million to new investments in 3Q’24 » Portfolio is 100% floating rate and nearly all first lien senior secured loans » Asset mix remains consistent at approximately 98% first lien senior secured ROLLING INVESTMENT ACTIVITY ($ IN MILLIONS) Note: Please see the Company’s filings with the SEC for more information about the Company’s portfolio. 1 Based on principal amount of investments and includes unfunded commitments. 2 Based on fair value of investments. 97% 97% 97% 98% 98% 98% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0% 20% 40% 60% 80% 100% 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 First Lien Subordinated Debt Equity 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Gross New Investment Commitments(1) $57 $30 $153 $464 $172 $183 Investment Fundings (Private Credit) 73 42 184 147 136 184 Investment Fundings (BSL) - - - 302 30 - Investment Fundings (Equity) - - - 1 1 1 Investments Repaid or Sold (Private Credit) (42) (42) (97) (32) (41) (83) Investments Repaid or Sold (BSL) - - - - (59) (2) Net Investment Activity $31 $0 $87 $417 $67 $100 $57 $30 $153 $464 $172 $183 $- $100 $200 $300 $400 $500 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24

 

 

FINANCIAL HIGHLIGHTS

 

 

13 Financial Highlights Net Asset Value NAV PER SHARE BRIDGE » NAV per share increased $0.13 during 3Q to $16.70, primarily the result of excess NII over base dividend $0.01 ( $0.29 ) ( $0.40 ) $16.57 $0.81 $16.70 $15.00 $15.50 $16.00 $16.50 $17.00 $17.50 $18.00 2Q'24 NAV Interest Income Unrealized Gain (Loss) Operating Expenses Dividends 3Q'24 NAV

 

 

14 Financial Highlights Dividend History 1 Yields presented above calculated by dividing either (i) dividends or (ii) NII, as applicable by the net asset value per shar e a t the end of the quarter and annualizing such amount over four quarterly periods. 2 All amounts presented on a per share basis utilizing end of period share count. DIVIDEND HISTORY (2) DIVIDEND AND NII YIELD (1) » Prior to 2024 , KBDC did not distinguish between regular and supplemental distributions and generally distributed substantially all its income on a quarterly basis ▪ During 1 Q’ 24 , KBDC established a $ 0 . 40 per share regular dividend ▪ KBDC declared three special dividends payable on 12 / 20 / 24 , 3 / 18 / 25 and 6 / 24 / 25 following pre - IPO share lock - up expiration dates » To the extent that NII exceeds the regular dividend, we plan to pay quarterly supplemental and annual special dividends following the expiration of pre - IPO shareholder lock - ups in 2 Q’ 25 $0.53 $0.53 $0.40 $0.40 $0.40 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 NII Yield 12.9% 13.2% 12.5% 12.3% 12.5% Total Dividend Yield 12.9% 12.9% 9.6% 9.7% 9.6%

 

 

BALANCE SHEET AND OPERATING RESULTS

 

 

16 Balance Sheet Summary ($000 except per share data) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Assets Long-term investments (fair value) $1,943,439 $1,847,058 $1,784,045 $1,363,498 $1,277,603 Short-term investments and cash 61,753 40,615 44,286 46,871 29,012 Receivable for principal pmts. on invest. 501 5,280 293 104 179 Interest receivable 22,391 16,780 15,551 12,874 13,718 Prepaid expenses and other assets 161 117 266 319 119 Total Assets $2,028,245 $1,909,850 $1,844,441 $1,423,666 $1,320,631 Liabilities Debt $788,000 $622,000 $659,000 $695,750 $598,000 Unamortized debt issuance costs (8,511) (9,448) (5,639) (6,431) (5,289) Payable for investments purchased 17,397 72,322 299,692 - - Shares repurchased payable 10 - - - - Capital payable - - 29,025 - - Distributions payable 28,420 28,446 19,516 22,050 21,999 Management fee payable 3,573 3,780 3,522 2,996 2,905 Incentive fee payable - - 16,826 14,195 11,692 Accrued expenses and other liabilities 13,151 14,574 10,942 12,050 10,598 Total Liabilities $842,040 $731,674 $1,032,884 $740,610 $639,905 Net Assets: Common Shares 71 71 49 42 42 Additional paid-in capital 1,153,001 1,154,108 790,245 669,990 668,505 Total distributable earnings (deficit) 33,133 23,997 21,263 13,024 12,179 Total Net Assets $1,186,205 $1,178,176 $811,557 $683,056 $680,726 Total Liabilities and Net Assets $2,028,245 $1,909,850 $1,844,441 $1,423,666 $1,320,631 Net Asset Value Per Common Share $16.70 $16.57 $16.63 $16.42 $16.40 Debt to equity at quarter end 0.66x 0.53x 0.81x 1.02x 0.88x Average debt to equity 0.62x 0.57x 0.94x 0.91x 0.93x

 

 

17 Operating Results Summary ($000 except per share data) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Investment income: Interest and dividend income $57,819 $52,453 $46,494 $42,695 $41,197 Total investment income $57,819 $52,453 $46,494 $42,695 $41,197 Expenses: Management fees 4,764 4,251 3,522 2,995 2,905 Incentive fees 5,605 4,109 2,631 2,504 2,371 Interest expense 16,069 13,239 15,656 13,918 13,871 Other general and admin. expenses 1,124 1,041 882 845 681 Total expenses $27,562 $22,640 $22,691 $20,262 $19,828 Management fee waiver (1,191) (471) - - - Incentive fee waiver (5,605) (4,109) - - - Net expenses $20,766 $18,060 $22,691 $20,262 $19,828 Net investment income $37,053 $34,393 $23,803 $22,433 $21,369 Net realized gains (losses) - (138) - (10,686) - Net change in unrealized gains (losses) 503 (3,075) 3,952 11,047 (7,497) Net increase in net assets resulting from operations $37,556 $31,180 $27,755 $22,794 $13,872 Net investment income per share $0.52 $0.51 $0.52 $0.54 $0.53 Earnings per share $0.53 $0.46 $0.61 $0.55 $0.34 Weighted average shares outstanding 71,083,885 67,426,904 45,345,417 41,591,048 40,499,327 For the Three Months Ended

 

 

18 Balance Sheet and Liquidity Financing Profile Note: As of September 30, 2024 unless otherwise noted. 1 Includes amortization of debt issuance and monitoring costs. DEBT FUNDING MIX ($ IN MILLIONS) FINANCING PER QUARTER ($ IN MILLIONS) » KBDC has diverse and adequate sources of liquidity to achieve its target debt - to - equity ratio of 1.00x to 1.25x » Debt capital is comprised of the following committed credit facilities and senior unsecured notes outstanding (2) Commitment Drawn Availability Pricing Maturity Corporate Facility $400.0 $221.0 $179.0 S + 2.35% February 18, 2027 Funding Facility 600.0 409.0 191.0 S + 2.375% - 2.500% April 3, 2029 Funding Faclity II 150.0 83.0 67.0 S + 2.70% December 22, 2028 Series A Notes 25.0 25.0 - 8.65% June 30, 2027 Series B Notes 50.0 50.0 - 8.74% June 30, 2028 Total $1,225.0 $788.0 $437.0 $618 $622 $703 $569 $731 9.0% 9.0% 8.9% 9.3% 8.6% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% $0 $200 $400 $600 $800 $1,000 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 Average Daily Borrowing Average Interest Rate 1

 

Cover	Nov. 13, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 13, 2024
Entity File Number	814-01363
Entity Registrant Name	Kayne Anderson BDC, Inc.
Entity Central Index Key	0001747172
Entity Tax Identification Number	83-0531326
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	717 Texas Avenue
Entity Address, Address Line Two	Suite 2200
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77002
City Area Code	713
Local Phone Number	493-2020
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001
Trading Symbol	KBDC
Security Exchange Name	NYSE
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false

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