Kayne Anderson BDC, Inc 8-K, filed Mar 3, 2025
Kayne Anderson BDC, Inc. (KBDC)
About this 8-K
Kayne Anderson BDC, Inc filed this 8-K on March 3, 2025.
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
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Item 2.02. Results of Operations and Financial Condition.
On March 3, 2025, Kayne Anderson BDC, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter ended December 31, 2024. The text of the press release is included as Exhibit 99.1 to this Form 8-K.
On March 4, 2025, the Company will host a conference call to discuss its financial results for the fourth quarter ended December 31, 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 March 3, 2025, the Company issued a press release, included herewith as Exhibit 99.1, announcing the declaration of a first quarter 2025 dividend of $0.40 per share, which will be payable on April 15, 2025 to stockholders of record as of March 31, 2025.
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 March 3, 2025. | |
| 99.2 | Kayne Anderson BDC, Inc. Fourth 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: March 3, 2025 | By: | /s/ Terry A. Hart |
| Name: | Terry A. Hart | |
| Title: | Chief Financial Officer and Treasurer | |
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Exhibit 99.1
Kayne Anderson BDC, Inc. Announces December 31, 2024 Financial Results and Declares First Quarter 2025 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, t o d a y announced its financial results for the fourth quarter ended December 31, 2024.
“During the fourth quarter we added 8 new investments to our platform consistent with our strategy of lending to stable industries, producing attractive debt investment opportunities with lower leverage and correspondingly higher interest coverage,” said Ken Leonard, Co-Chief Executive Officer. “Our portfolio continued to perform well during the fourth quarter with only 1.3% of debt investments on non-accrual status and just 1.1% of interest income for the quarter represented by PIK income.”
“During the fourth quarter we continued to make progress towards our leverage target and expect to achieve the low end of our debt-to-equity target range of 1.0x – 1.25x by the second or third quarter of 2025,” said Doug Goodwillie, Co-Chief Executive Officer. “We continue to identify and secure middle market loans at compelling risk-adjusted returns, with the first quarter of 2025 positioning itself as one of our strongest quarters for origination since the inception of KBDC.”
Financial Highlights for the Quarter Ended December 31, 2024
| ● | Net investment income of $34.0 million, or $0.48 per share ($0.49 excluding excise taxes); |
| ● | Net asset value of $16.70 per share, unchanged from $16.70 per share as of September 30, 2024, primarily the result of paying out all of the income during the quarter with regular distribution and the first of three special dividends of $0.10 per share declared in conjunction with the Company’s IPO; |
| ● | Amended its Corporate Credit Facility to extend the maturity and reduce spread from SOFR plus 2.35% to SOFR plus 2.10%; |
| ● | New private credit and equity co-investment commitments of $230.6 million, fundings of $208.5 million and sales and repayments of $139.1 million, resulting in a net funded private credit and equity investment increase of $69.4 million; |
| ● | Net repayments of broadly syndicated loans of $18.0 million; and |
| ● | The Company’s Board of Directors (the “Board”) declared a regular dividend of $0.40 per share, to be paid on April 15, 2025 to stockholders of record as of March 31, 2025. |
Selected Financial Highlights
| As of | ||||||||
| (in thousands, expect per share data) | December 31, 2024 | September 30, 2024 | ||||||
| Investment portfolio, at fair value | $ | 1,995,143 | $ | 1,943,439 | ||||
| Total assets | $ | 2,082,664 | $ | 2,028,245 | ||||
| Total debt outstanding, at principal | $ | 858,000 | $ | 788,000 | ||||
| Net assets | $ | 1,186,342 | $ | 1,186,205 | ||||
| Net asset value per share | $ | 16.70 | $ | 16.70 | ||||
| Total debt-to-equity ratio | 0.72x | 0.66x | ||||||
| For the quarter ended | ||||||||
| December 31, 2024 | September 30, 2024 | |||||||
| Net investment income per share | $ | 0.48 | $ | 0.52 | ||||
| Net realized and unrealized gains (losses) per share | $ | 0.02 | $ | 0.01 | ||||
| Earnings per share | $ | 0.50 | $ | 0.53 | ||||
| Regular dividend per share | $ | 0.40 | $ | 0.40 | ||||
| Special dividend per share | $ | 0.10 | $ | - | ||||
Results of Operations
Total investment income for the quarter ended December 31, 2024 was $56.3 million, as compared to $57.8 million for the quarter ended September 30, 2024. The decrease was primarily the result of the decrease to reference rates (SOFR) and the $0.7 million impact of placing Sundance on non-accrual status during the quarter. These reductions were partially offset by the net additions to the portfolio during the fourth quarter. PIK income represented 1.1% of total interest income for the fourth quarter.
Net investment income for the quarter ending December 31, 2024 was $34.0 million or $0.48 per share, compared to $37.1 million or $0.52 per share for the quarter ended September 30, 2024. Net expenses for the third quarter were $22.3 million compared to $20.8 million for the prior quarter. The increase was primarily the result of $0.8 million of excise taxes related to undistributed income for the year and higher interest expense on increased borrowings during the quarter.
For the quarter ended December 31, 2024, the Company had a realized gain of $0.7 million on the sale of an equity co-investment and the net change in unrealized gains on investments was $1.4 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 of original issue discounts. Additionally, the Company had $0.7 million of deferred income tax expense related to unrealized gains in the Company’s wholly owned taxable subsidiary.
Portfolio and Investment Activity
| As of | ||||||||
| ($ in thousands) | December 31, 2024 | September 30, 2024 | ||||||
| Investments at fair value | $ | 1,995,143 | $ | 1,943,439 | ||||
| Number of portfolio companies | 110 | 110 | ||||||
| Average portfolio company investment size | $ | 18,138 | $ | 17,668 | ||||
| Asset class: | ||||||||
| First lien debt | 98.0 | % | 98.0 | % | ||||
| Subordinated debt | 0.9 | % | 0.9 | % | ||||
| Equity | 1.1 | % | 1.1 | % | ||||
| Non-accrual debt investments: | ||||||||
| Non-accrual investments at fair value | $ | 25,079 | $ | 19,229 | ||||
| Non-accrual investments as a percentage of debt investments at fair value | 1.3 | % | 1.0 | % | ||||
| Number of investments on non-accrual | 3 | 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 | 11.1 | % | 11.9 | % | ||||
| Weighted average yield on broadly syndicated loans | 7.1 | % | 7.8 | % | ||||
| Weighted average yield on total debt portfolio | 10.6 | % | 11.3 | % | ||||
| Investment activity during the quarter ended: | ||||||||
| Gross new investment commitments | $ | 230,631 | (1) | $ | 182,559 | (2) | ||
| Principal amount of investments funded | $ | 208,516 | (1) | $ | 184,566 | (2) | ||
| Principal amount of investments sold or repaid | $ | (157,095 | )(1) | $ | (85,009 | )(2) | ||
| Net principal amount of investments funded | $ | 51,421 | $ | 99,557 | ||||
| (1) | For the quarter ending December 31, 2024, broadly syndicated loans represent $0 of new investment commitments, $0 of investments funded and $17,956 of investments sold or repaid. |
| (2) | 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
Liquidity and Capital Resources
As of December 31, 2024, the Company had $75 million senior unsecured notes outstanding, $783 million borrowed under its credit facilities and cash and cash equivalents of $71.1 million (including short-term investments). As of that date, the Company had $442.0 million of undrawn commitments available on its credit facilities (subject to borrowing base restrictions and other conditions).
As of December 31, 2024, the Company’s debt-to-equity ratio was 0.72x and its asset coverage ratio was 238%. 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 to achieve the low end of its targeted leverage by the second or third quarter of 2025.
Recent Developments
| ● | On February 5, 2025, the Company and its wholly owned special purpose financing subsidiary Kayne Anderson BDC Financing II, LLC (“KABDCF II”) amended the Revolving Funding Facility II. Under the terms of the amendment, the lender increased the facility’s commitment amount to $250 million from $150 million, extended the final maturity date to December 22, 2029 and reduced the interest rate on borrowings from 3-month SOFR plus 2.70% per annum to 3-month SOFR plus 2.25% per annum. |
| ● | On February 13, 2025, the Company and its wholly owned special purpose financing subsidiary Kayne Anderson BDC Financing, LLC (“KABDCF”) amended the Revolving Funding Facility. Under the terms of the amendment, the lenders increased the facility’s commitment amount to $675 million from $600 million, extended the final maturity date to February 13, 2030 and reduced the interest rate on borrowings from daily SOFR plus 2.375%-2.50% per annum (depending on the mix of loans) to daily SOFR plus 2.15% per annum. |
| ● | On February 14, 2025, the Company reduced the size of its Corporate Credit Facility from $475 million to $400 million. This commitment reduction was done in conjunction with the $75 million increase to its Revolving Funding Facility from $600 million to $675 million. |
| ● | On February 19, 2025, 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 April 15, 2025 to stockholders of record as of the close of business on March 31, 2025. |
Conference Call Information
KBDC will host a conference call at 10:00 am ET on Tuesday, March 4, 2025, 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: 800-715-9871 |
| ● | International: +1 646-307-1963 |
| ● | Conference ID: 2616610 |
Webcast Link
| ● | https://events.q4inc.com/attendee/492347388 |
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 800-770-2030 (domestic) and +1 609-800-9909 (international). The replay will be available until March 12, 2025.
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Kayne Anderson BDC, Inc.
Consolidated Statements of Assets and Liabilities
(amounts in 000’s, except share and per share amounts)
| December 31, 2024 | December 31, 2023 | |||||||
| Assets: | ||||||||
| Investments, at fair value: | ||||||||
| Non-controlled, non-affiliated investments (amortized cost of $1,956,617 and $1,343,223) | $ | 1,982,947 | $ | 1,363,498 | ||||
| Non-controlled, affiliated investments (amortized cost of $15,438 and $0, respectively) | 12,196 | - | ||||||
| Short-term investments (amortized cost of $48,683 and $12,802) | 48,683 | 12,802 | ||||||
| Cash and cash equivalents | 22,375 | 34,069 | ||||||
| Receivable for principal payments on investments | 540 | 104 | ||||||
| Interest receivable | 14,965 | 12,874 | ||||||
| Prepaid expenses and other assets | 958 | 319 | ||||||
| Total Assets | $ | 2,082,664 | $ | 1,423,666 | ||||
| Liabilities: | ||||||||
| Corporate Credit Facility | $ | 250,000 | $ | 234,000 | ||||
| Unamortized Corporate Credit Facility issuance costs | (3,235 | ) | (1,715 | ) | ||||
| Revolving Funding Facility | 420,000 | 306,000 | ||||||
| Unamortized Revolving Funding Facility issuance costs | (4,746 | ) | (2,019 | ) | ||||
| Revolving Funding Facility II | 113,000 | 70,000 | ||||||
| Unamortized Revolving Funding Facility II issuance costs | (1,251 | ) | (1,805 | ) | ||||
| Subscription Credit Agreement | - | 10,750 | ||||||
| Unamortized Subscription Credit Facility issuance costs | - | (41 | ) | |||||
| Notes | 75,000 | 75,000 | ||||||
| Unamortized notes issuance costs | (643 | ) | (851 | ) | ||||
| Distributions payable | 28,424 | 22,050 | ||||||
| Management fee payable | 3,712 | 2,996 | ||||||
| Incentive fee payable | - | 14,195 | ||||||
| Accrued expenses and other liabilities | 15,236 | 11,949 | ||||||
| Accrued excise tax expense | 825 | 101 | ||||||
| Total Liabilities | $ | 896,322 | $ | 740,610 | ||||
| Commitments and contingencies | ||||||||
| Net Assets: | ||||||||
| Common Shares, $0.001 par value; 100,000,000 shares authorized; 71,059,689 and 41,603,666 as of December 31, 2024 and December 31, 2023, respectively, issued and outstanding | $ | 71 | $ | 42 | ||||
| Additional paid-in capital | 1,152,396 | 669,990 | ||||||
| Total distributable earnings (deficit) | 33,875 | 13,024 | ||||||
| Total Net Assets | $ | 1,186,342 | $ | 683,056 | ||||
| Total Liabilities and Net Assets | $ | 2,082,664 | $ | 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)
| For the Three Months Ended | For the Years Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Income: | ||||||||||||||||
| Investment income from investments: | ||||||||||||||||
| Interest income from non-controlled, non-affiliated investments | $ | 55,869 | $ | 42,473 | $ | 210,884 | $ | 160,433 | ||||||||
| Interest income from non-controlled, affiliated investments | - | - | 754 | - | ||||||||||||
| Dividend income | 471 | 222 | 1,468 | 571 | ||||||||||||
| Total Investment Income | 56,340 | 42,695 | 213,106 | 161,004 | ||||||||||||
| Expenses: | ||||||||||||||||
| Management fees | 4,950 | 2,995 | 17,487 | 11,433 | ||||||||||||
| Incentive fees | 5,104 | 2,504 | 17,449 | 9,433 | ||||||||||||
| Interest expense | 16,552 | 13,918 | 61,516 | 52,314 | ||||||||||||
| Professional fees | 461 | 209 | 1,503 | 691 | ||||||||||||
| Directors fees | 158 | 147 | 621 | 611 | ||||||||||||
| Excise tax | 825 | 101 | 817 | 101 | ||||||||||||
| Other general and administrative expenses | 609 | 388 | 2,159 | 1,604 | ||||||||||||
| Total Expenses | 28,659 | 20,262 | 101,552 | 76,187 | ||||||||||||
| Less: Management fee waiver | (1,238 | ) | - | (2,900 | ) | - | ||||||||||
| Less: Incentive fee waiver | (5,104 | ) | - | (14,818 | ) | - | ||||||||||
| Net Expenses | 22,317 | 20,262 | 83,834 | 76,187 | ||||||||||||
| Net Investment Income (Loss) | 34,023 | 22,433 | 129,272 | 84,817 | ||||||||||||
| Realized and unrealized gains (losses) on investments | ||||||||||||||||
| Net realized gains (losses): | ||||||||||||||||
| Non-controlled, non-affiliated investments | 708 | (10,686 | ) | 570 | (10,686 | ) | ||||||||||
| Total net realized gains (losses) | 708 | (10,686 | ) | 570 | (10,686 | ) | ||||||||||
| Net change in unrealized gains (losses): | ||||||||||||||||
| Non-controlled, non-affiliated investments | 1,460 | 11,047 | 4,783 | 2,944 | ||||||||||||
| Non-controlled, affiliated investments | (25 | ) | - | (1,968 | ) | - | ||||||||||
| Deferred income tax expense | (717 | ) | - | (717 | ) | - | ||||||||||
| Total net change in unrealized gains (losses) | 718 | 11,047 | 2,098 | 2,944 | ||||||||||||
| Total realized and unrealized gains (losses) | 1,426 | 361 | 2,668 | (7,742 | ) | |||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 35,449 | $ | 22,794 | $ | 131,940 | $ | 77,075 | ||||||||
| Per Common Share Data: | ||||||||||||||||
| Basic and diluted net investment income per common share | $ | 0.48 | $ | 0.54 | $ | 2.03 | $ | 2.16 | ||||||||
| Basic and diluted net increase in net assets resulting from operations | $ | 0.50 | $ | 0.55 | $ | 2.07 | $ | 1.96 | ||||||||
| Weighted Average Common Shares Outstanding - Basic and Diluted | 71,032,941 | 41,591,048 | 63,762,377 | 39,250,232 | ||||||||||||
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
kaynebdc@kaynecapital.com
6
Exhibit 99.2
KAYNEBDC.COM KAYNE ANDERSON BDC, INC. EARNINGS PRESENTATION Fourth 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 can be no 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 December 31 , 2024, KBDC held $ 253 million of such investments (fair value), representing ~13% of total fair market value of investments. 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: $0.48 ($0.49 excluding excise taxes) » Net asset value per share: $16.70 » Annualized ROE: 11.5% on net investment income (11.8% excluding excise taxes) » 4Q’24 dividend per share: $0.40 regular (annualized dividend yield of ~9.6%) (1) » Total fair value was approximately $2.0 billion invested in 110 companies » Weighted average yield at amortized cost of debt investments was 10.7% (2) » 98% first - lien portfolio » Weighted average and median EBITDA of borrowers of $58.1 million (3)(4) and $34.3 million (3)(4) , respectively » Average position size of 0.9% with 10 largest positions representing 18.6% of the portfolio (5) » 1.3% of investments (based on fair value) on non - accrual » Outstanding debt balance was $858 million; quarter - end debt - to - equity ratio was 0.72x » Total liquidity of $513 million, including cash of $71 million and undrawn committed debt capacity of $442 million » $100 million Share Repurchase Plan: Repurchased 94,613 shares / $1.5 million through December 31, 2024 » Declared 1Q’25 regular distribution of $0.40 per share on February 19, 2025 » Special distribution of $0.10 per share, announced in conjunction with the IPO, will be paid on March 18, 2025 to investors of record as of March 3, 2025 » Amended all three credit agreements to reduce borrowing costs, extend maturities and increase aggregate commitments by $175 million
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 - $ 75 + 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 December 31, 2024, KBDC held $253 milli on of such investments (fair value), representing ~13% 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 4Q NII per share (excluding excise taxes) by NAV per share at December 31 , 2024. $ 2.0 bn Portfolio Fair Value ($2.2bn 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) ~10.7% Wtd. Avg. Portfolio Yield (2) 4.2x Wtd. Avg. Net Leverage (3) KBDC OVERVIEW (DECEMBER 31, 2024) 1.3% FV Debt on Non - Accrual 11.8% NII Yield (4)
7 Executive Summary Key Financial Highlights 1 Yield on an annualized basis. Prior to 2024, the Company did not distinguish between regular and supplemental distributions a nd generally distributed substantially all its income on a quarterly basis. » KBDC’s dividend yield is ~ 10 . 8 % inclusive of the two remaining declared special distributions (not annualized) of $ 0 . 10 per share payable on March 18 , 2025 and June 24 , 2025 » As of December 31 , 2024 , KBDC had undistributed net investment income of approximately $ 0 . 32 per share ( $ 0 . 12 per share after the payment of the special distributions) ($000 except per share data) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Net Investment Income $0.48 $0.52 $0.51 $0.52 $0.54 Net Realized and Unrealized Gains (Losses) $0.02 $0.01 ($0.05) $0.09 $0.01 Net Income (loss) $0.50 $0.53 $0.46 $0.61 $0.55 Net Asset Value $16.70 $16.70 $16.57 $16.63 $16.42 Annualized ROE (on Net Investment Income) 11.5% 12.5% 12.3% 12.5% 13.2% Annualized ROE (on Net Income) 12.0% 12.7% 11.1% 14.7% 13.4% Regular Distributions (1) $0.40 $0.40 $0.40 $0.40 $0.53 Supplemental Distributions - - - - - Special Distributions 0.10 - - - - Total Distributions $0.50 $0.40 $0.40 $0.40 $0.53 Regular Distribution Yield (1) 9.6% 9.6% 9.7% 9.6% 12.9% Supplemental Distribution Yield (1) - - - - - Special Distribution Yield (1) 2.4% - - - - Total Distribution Yield 12.0% 9.6% 9.7% 9.6% 12.9% Total Debt $858,000 $788,000 $622,000 $659,000 $695,750 Net Assets $1,186,342 $1,186,205 $1,178,176 $811,557 $683,056 Debt-to-Equity at Quarter End 0.72x 0.66x 0.53x 0.81x 1.02x As of Date and for the Three Months Ended
PORTFOLIO OVERVIEW
9 Portfolio Overview Key Statistics 1 1Q’24 – 4Q’24 includes investments in broadly syndicated loans; as of 4Q’24, KBDC held $253 million of such investments (fair va lue) across 21 borrowers. Quarters prior to 1Q’24 presented above included no investments in broadly syndicated loans. KEY PORTFOLIO STATISTICS ($ IN MILLIONS) (1) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Portfolio Highlights Funded Investments at Fair Value $1,995 $1,943 $1,847 $1,784 $1,363 Number of Portfolio Companies 110 110 106 103 76 Average Position Size at Fair Value ($) $18.1 $17.7 $17.4 $17.3 $17.9 Average Position Size at Fair Value (%) 0.9% 0.9% 0.9% 1.0% 1.3% Portfolio Composition (at fair value) First Lien 98% 98% 98% 98% 97% Second Lien 0% 0% 0% 0% 0% Subordinated 1% 1% 1% 1% 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 11.1% 11.9% 12.3% 12.4% 12.5% Weighted Average Yield on Broadly Syndicated Loans 7.1% 7.8% 8.3% 8.4% N/A Weighted Average Yield on Debt Investments 10.6% 11.3% 11.7% 11.7% 12.5% Non-accrual Debt Investments (at fair value) Non-accrual Investments $25.0 $19.2 $18.9 $7.0 $5.9 Non-accrual Investments as a % of Debt Investments 1.3% 1.0% 1.0% 0.4% 0.4% Number of Investments on Non-accrual 3 2 2 1 1
10 Suave 2.1% MARS 2.0% Keany 2.0% M2S 1.9% American Equipment 1.9% Vitesse 1.8% FreshEdge 1.7% Peak Technologies 1.7% Genuine Cable Group 1.7% Improving 1.7% All Others 81.4% Portfolio Overview Diversity (As of December 31, 2024) Note: Please see the Company’s filings with the SEC for more information about the Company’s portfolio 1 Calculated as a percentage of total debt investments at fair value. 2 In some instances, we have disclosed the borrower’s DBA name. INDUSTRY CONCENTRATION BORROWER CONCENTRATION (1)(2) Average Position Size: 0.9% 110 Borrowers
11 Portfolio Overview Asset Mix GROSS NEW COMMITMENTS ($ IN MILLIONS) (1) ASSET MIX AT END OF PERIOD (2) » KBDC committed approximately $231 million to new investments in 4Q’24 » Portfolio is 100% floating rate and nearly all first lien senior secured loans » Asset mix remains consistent at approximately 98% first lien senior secured ROLLING INVESTMENT ACTIVITY ($ 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% 98% 2% 2% 2% 1% 1% 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 4Q'24 First Lien Subordinated Debt Equity 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 Gross New Investment Commitments (1) $57 $30 $153 $463 $168 $183 $231 Investment Fundings (Private Credit) 73 42 184 147 136 184 207 Investment Fundings (BSL) - - - 302 26 - - Investment Fundings (Equity) - - - 1 1 1 2 Investments Repaid or Sold (Private Credit) (42) (42) (97) (32) (41) (83) (139) Investments Repaid or Sold (BSL) - - - - (55) (2) (18) Net Investment Activity $31 $0 $87 $417 $67 $100 $52 $57 $30 $153 $463 $168 $183 $231 $- $100 $200 $300 $400 $500 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24
FINANCIAL HIGHLIGHTS
13 Financial Highlights Net Asset Value NAV PER SHARE BRIDGE » NAV per share of $16.70 was unchanged from 3Q to 4Q; results of operations were $0.10 higher than our regular dividend of $0.40 per share and we paid the first of three special dividends of $0.10 resulting in no change to NAV per share
14 $0.53 $0.53 $0.40 $0.40 $0.40 $0.50 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 NII Yield 12.9% 13.2% 12.5% 12.3% 12.5% 11.5% Total Dividend Yield 12.9% 12.9% 9.6% 9.7% 9.6% 12.0% 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 or special 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
BALANCE SHEET AND OPERATING RESULTS
16 Balance Sheet Summary ($000 except per share data) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Assets Long-term investments (fair value) $1,995,143 $1,943,439 $1,847,058 $1,784,045 $1,363,498 Short-term investments and cash 71,058 61,753 40,615 44,286 46,871 Receivable for principal pmts. on invest. 540 501 5,280 293 104 Interest receivable 14,965 22,391 16,780 15,551 12,874 Prepaid expenses and other assets 958 161 117 266 319 Total Assets $2,082,664 $2,028,245 $1,909,850 $1,844,441 $1,423,666 Liabilities Debt $858,000 $788,000 $622,000 $659,000 $695,750 Unamortized debt issuance costs (9,875) (8,511) (9,448) (5,639) (6,431) Payable for investments purchased - 17,397 72,322 299,692 - Shares repurchased payable - 10 - - - Capital payable - - - 29,025 - Distributions payable 28,424 28,420 28,446 19,516 22,050 Management fee payable 3,712 3,573 3,780 3,522 2,996 Incentive fee payable - - - 16,826 14,195 Accrued expenses and other liabilities 16,061 13,151 14,574 10,942 12,050 Total Liabilities $896,322 $842,040 $731,674 $1,032,884 $740,610 Net Assets: Common Shares 71 71 71 49 42 Additional paid-in capital 1,152,396 1,153,001 1,154,108 790,245 669,990 Total distributable earnings (deficit) 33,875 33,133 23,997 21,263 13,024 Total Net Assets $1,186,342 $1,186,205 $1,178,176 $811,557 $683,056 Total Liabilities and Net Assets $2,082,664 $2,028,245 $1,909,850 $1,844,441 $1,423,666 Net Asset Value Per Common Share $16.70 $16.70 $16.57 $16.63 $16.42 Debt to equity at quarter end 0.72x 0.66x 0.53x 0.81x 1.02x Average debt to equity 0.69x 0.62x 0.57x 0.94x 0.91x
17 Operating Results Summary ($000 except per share data) Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Investment income: Interest and dividend income $56,340 $57,819 $52,453 $46,494 $42,695 Total investment income $56,340 $57,819 $52,453 $46,494 $42,695 Expenses: Management fees 4,950 4,764 4,251 3,522 2,995 Incentive fees 5,104 5,605 4,109 2,631 2,504 Interest expense 16,552 16,069 13,239 15,656 13,918 Other general and admin. expenses 1,228 1,124 1,041 890 744 Excise taxes 825 - - (8) 101 Total expenses $28,659 $27,562 $22,640 $22,691 $20,262 Management fee waiver (1,238) (1,191) (471) - - Incentive fee waiver (5,104) (5,605) (4,109) - - Net expenses $22,317 $20,766 $18,060 $22,691 $20,262 Net investment income $34,023 $37,053 $34,393 $23,803 $22,433 Net realized gains (losses) 708 - (138) - (10,686) Net change in unrealized gains (losses) 718 503 (3,075) 3,952 11,047 Net increase in net assets resulting from operations $35,449 $37,556 $31,180 $27,755 $22,794 Net investment income per share $0.48 $0.52 $0.51 $0.52 $0.54 Earnings per share $0.50 $0.53 $0.46 $0.61 $0.55 Weighted average shares outstanding 71,032,941 71,083,885 67,426,904 45,345,417 41,591,048 For the Three Months Ended
18 Balance Sheet and Liquidity Financing Profile Note: Commitment amounts are as of February 28, 2025. Drawn amounts are as of December 31, 2024. 1 Includes amortization of debt issuance and monitoring costs. DEBT FUNDING MIX ($ 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 » During November KBDC amended its Corporate Facility and in February amended both Funding Facilities › Increased commitments $175 million, extended maturities and reduced the weighted average spread by 0.275% $622 $703 $569 $731 $817 9.0% 8.9% 9.3% 8.6% 7.9% 2.0% 4.0% 6.0% 8.0% 10.0% $0 $200 $400 $600 $800 $1,000 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 Average Daily Borrowing Average Interest Rate 1 Commitment Drawn Availability Pricing Maturity Corporate Facility $400.0 $250.0 $150.0 S + 2.10% November 22, 2029 Funding Facility 675.0 420.0 255.0 S + 2.15% February 13, 2030 Funding Faclity II 250.0 113.0 137.0 S + 2.25% December 22, 2029 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 $1,400.0 $858.0 $542.0