Kayne Anderson BDC, Inc. Announces June 30, 2024 Financial Results and Declares Third Quarter 2024 Dividend of $0.40 Per Share
Kayne Anderson BDC (NYSE: KBDC) reported its Q2 2024 financial results and declared a Q3 2024 dividend of $0.40 per share. Key highlights include:
- Net investment income of $34.4 million ($0.51 per share)
- Net asset value of $16.57 per share
- New private credit investment commitments of $141.8 million
- Amended Revolving Funding Facility, increasing commitment to $600 million
- Total investment income increased to $52.5 million from $46.5 million in Q1 2024
The company's debt-to-equity ratio was 0.53x as of June 30, 2024, below its target of 1.0x to 1.25x. KBDC expects to continue growing its private credit portfolio to achieve targeted leverage. The Board declared a regular dividend of $0.40 per share, payable on October 15, 2024.
Kayne Anderson BDC (NYSE: KBDC) ha riportato i risultati finanziari del secondo trimestre 2024 e ha dichiarato un dividendo per il terzo trimestre 2024 di $0,40 per azione. Punti salienti includono:
- Reddito da investimenti netti di $34,4 milioni ($0,51 per azione)
- Valore patrimoniale netto di $16,57 per azione
- Nuovi impegni per investimenti in crediti privati di $141,8 milioni
- Modifica della linea di credito revolving, aumentando l'impegno a $600 milioni
- Il reddito totale da investimenti è aumentato a $52,5 milioni, rispetto ai $46,5 milioni del primo trimestre 2024
Il rapporto debito-capitale dell'azienda era di 0,53x al 30 giugno 2024, al di sotto del target di 1,0x a 1,25x. KBDC si aspetta di continuare a far crescere il suo portafoglio di crediti privati per raggiungere l'effetto leva previsto. Il Consiglio di Amministrazione ha dichiarato un dividendo regolare di $0,40 per azione, pagabile il 15 ottobre 2024.
Kayne Anderson BDC (NYSE: KBDC) informó sus resultados financieros del segundo trimestre de 2024 y declaró un dividendo del tercer trimestre de 2024 de $0,40 por acción. Aspectos destacados incluyen:
- Ingresos netos de inversiones de $34,4 millones ($0,51 por acción)
- Valor neto de activos de $16,57 por acción
- Nuevos compromisos de inversión en crédito privado de $141,8 millones
- Modificación de la línea de crédito renovable, aumentando el compromiso a $600 millones
- Los ingresos totales de inversión aumentaron a $52,5 millones desde $46,5 millones en el primer trimestre de 2024
La relación deuda-capital de la empresa era de 0,53x al 30 de junio de 2024, por debajo de su objetivo de 1,0x a 1,25x. KBDC espera continuar creciendo su cartera de crédito privado para alcanzar el apalancamiento objetivo. La Junta declaró un dividendo regular de $0,40 por acción, pagadero el 15 de octubre de 2024.
케인 앤더슨 BDC(NYSE: KBDC)는 2024년 2분기 재무 결과를 발표하고 2024년 3분기 주당 $0.40의 배당금을 선언했습니다. 주요 하이라이트는 다음과 같습니다:
- 순 투자 수익이 3,440만 달러($0.51 per share)
- 주당 순 자산 가치가 $16.57
- 1억 4,180만 달러의 새로운 개인 신용 투자 약정
- 리볼빙 자금 조달 시설 수정, 약정을 6억 달러로 증가시킴
- 총 투자 수익이 4,650만 달러에서 5,250만 달러로 증가했습니다.
회사의 부채-자본 비율은 2024년 6월 30일 기준으로 0.53배로, 목표치인 1.0배에서 1.25배 이하입니다. KBDC는 목표 레버리지를 달성하기 위해 개인 신용 포트폴리오를 계속 확장할 것으로 예상합니다. 이사회는 2024년 10월 15일에 지급될 주당 $0.40의 정기 배당금을 선언했습니다.
Kayne Anderson BDC (NYSE: KBDC) a annoncé ses résultats financiers pour le 2e trimestre 2024 et a déclaré un dividende de 0,40 $ par action pour le 3e trimestre 2024. Les points clés incluent :
- Revenus nets d'investissements de 34,4 millions $ (0,51 $ par action)
- Valeur nette des actifs de 16,57 $ par action
- Nouveaux engagements d'investissement dans le crédit privé de 141,8 millions $
- Modifications de la ligne de crédit renouvelable, portant l'engagement à 600 millions $
- Les revenus totaux d'investissement ont augmenté à 52,5 millions $ contre 46,5 millions $ au 1er trimestre 2024
Le ratio de dette sur capitaux propres de l'entreprise était de 0,53x au 30 juin 2024, inférieur à l'objectif de 1,0x à 1,25x. KBDC s'attend à continuer à développer son portefeuille de crédits privés pour atteindre l'effet de levier visé. Le conseil a déclaré un dividende régulier de 0,40 $ par action, payable le 15 octobre 2024.
Kayne Anderson BDC (NYSE: KBDC) hat seine finanziellen Ergebnisse für das 2. Quartal 2024 veröffentlicht und eine Dividende von 0,40 $ pro Aktie für das 3. Quartal 2024 erklärt. Wichtige Highlights umfassen:
- Nettokapitalerträge in Höhe von 34,4 Millionen $ (0,51 $ pro Aktie)
- Nettovermögen von 16,57 $ pro Aktie
- Neue Verpflichtungen für private Kreditinvestitionen in Höhe von 141,8 Millionen $
- Änderungen der revolvierenden Kreditfazilität, Erhöhung des Engagements auf 600 Millionen $
- Gesamte Investitionserträge stiegen von 46,5 Millionen $ im 1. Quartal 2024 auf 52,5 Millionen $
Das Verhältnis von Schulden zu Eigenkapital des Unternehmens lag zum 30. Juni 2024 bei 0,53x, unter dem Zielwert von 1,0x bis 1,25x. KBDC rechnet damit, sein Portfolio an privaten Krediten weiter auszubauen, um die angestrebte Hebelwirkung zu erreichen. Der Vorstand erklärte eine reguläre Dividende von 0,40 $ pro Aktie, zahlbar am 15. Oktober 2024.
- Net investment income increased to $34.4 million ($0.51 per share)
- New private credit investment commitments of $141.8 million
- Amended Revolving Funding Facility, increasing commitment to $600 million and reducing interest rate
- Total investment income increased to $52.5 million from $46.5 million in Q1 2024
- Net asset value per share increased by $0.05 after considering IPO dilution
- Net asset value per share decreased from $16.63 to $16.57 quarter-over-quarter
- Net change in unrealized losses of $3.1 million for the quarter
- Trademark Global moved to non-accrual status as of June 30, 2024
- Non-accrual investments increased to 1.0% of debt investments at fair value, up from 0.4% in Q1 2024
Insights
KBDC's Q2 2024 results show a mixed performance. Net investment income of
The amended Revolving Funding Facility, now at
While the increase in non-accrual investments to
KBDC's Q2 results reflect the current dynamics in the private credit market. The increase in origination activity aligns with broader market trends, as middle-market companies continue to seek alternative financing sources. The company's focus on senior secured first lien loans in the core middle market demonstrates a conservative approach, balancing yield with risk management.
The slight NAV decrease and increase in non-accrual investments warrant attention, potentially signaling some stress in the portfolio. However, the company's ability to grow its portfolio and maintain its dividend in this environment is noteworthy. The amended credit facility with improved terms suggests strong lender confidence and positions KBDC well for future growth.
Investors should monitor KBDC's progress towards its target leverage ratio, as this could drive future earnings growth. The company's performance relative to peers and its ability to navigate potential economic headwinds will be important factors to watch in the coming quarters.
“We believe that the core middle market represents the most attractive risk / reward area of private credit and are pleased with the portfolio of senior secured first lien loans that we have constructed for KBDC,” said Ken Leonard, Co-Chief Executive Officer. “Our middle market loans have relatively low leverage and higher interest coverage while earning an attractive yield for our shareholders.”
“We are encouraged by the increase in origination activity that we have experienced in the first half of the year and are confident that KBDC will continue to grow its private credit portfolio over the remainder of the year to the benefit of our shareholders,” said Doug Goodwillie, Co-Chief Executive Officer.
Financial Highlights for the Quarter Ended June 30, 2024
-
Net investment income of
, or$34.4 million per share;$0.51 -
Net asset value of
per share, a decrease from$16.57 per share as of March 31, 2024, but an increase of$16.63 after considering$0.05 per share dilution from the Company’s Initial Public Offering (“IPO”);$0.11 -
Amended the Revolving Funding Facility, increasing the commitment from
to$455 million , extending the maturity date to April 3, 2029 and reducing the interest rate from daily SOFR plus$600 million 2.75% to SOFR plus2.375% -2.50% depending on the mix of loans securing the facility; -
New private credit investment commitments of
, fundings of$141.8 million and sales and repayments of$136.2 million , resulting in a net funded private credit portfolio increase of$40.5 million ;$95.7 million -
Net repayments of broadly syndicated loans of
; and$28.5 million -
The Company’s Board of Directors (the “Board”) declared a regular dividend of
per share, to be paid on October 15, 2024 to stockholders of record as of September 30, 2024.$0.40
Selected Financial Highlights
|
|
As of |
||||||
(in thousands, expect per share data) |
|
June 30, 2024 |
|
|
March 31, 2024 |
|||
|
|
|
|
|
|
|
|
|
Investment portfolio, at fair value |
|
$ |
1,847,058 |
|
|
|
$ |
1,784,045 |
Total assets |
|
$ |
1,909,850 |
|
|
|
$ |
1,844,441 |
Total debt outstanding, at principal |
|
$ |
622,000 |
|
|
|
$ |
659,000 |
Net assets |
|
$ |
1,178,176 |
|
|
|
$ |
811,557 |
Net asset value per share |
|
$ |
16.57 |
|
|
|
$ |
16.63 |
Total debt-to-equity ratio |
|
|
0.53x |
|
|
|
0.81x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended |
||||||
|
|
June 30, 2024 |
|
|
March 31, 2024 |
|||
|
|
|
|
|
|
|
|
|
Net investment income per share |
|
$ |
0.51 |
|
|
|
$ |
0.52 |
Net realized and unrealized gains (losses) per share |
|
$ |
(0.05 |
) |
|
|
$ |
0.09 |
Earnings per share |
|
$ |
0.46 |
|
|
|
$ |
0.61 |
Regular dividend per share |
|
$ |
0.40 |
|
|
|
$ |
0.40 |
Special dividend per share |
|
$ |
- |
|
|
|
$ |
- |
Results of Operations
Total investment income for the quarter ended June 30, 2024 was
Net investment income for the quarter ending June 30, 2024 was
For the quarter ended June 30, 2024, the net change in unrealized losses was
Portfolio and Investment Activity
|
As of |
|||||||
($ in thousands) |
June 30, 2024 |
|
March 31, 2024 |
|||||
|
|
|
|
|
||||
Investments at fair value |
$ |
1,847,058 |
|
|
$ |
1,784,045 |
|
|
Number of portfolio companies |
|
106 |
|
|
|
103 |
|
|
Average portfolio company investment size |
$ |
17,425 |
|
|
$ |
17,321 |
|
|
|
|
|
|
|
|
|
||
Asset class: |
|
|
|
|
|
|
||
First lien debt |
|
97.8 |
% |
|
|
97.7 |
% |
|
Subordinated debt |
|
1.2 |
% |
|
|
1.2 |
% |
|
Equity |
|
1.0 |
% |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
||
Non-accrual debt investments: |
|
|
|
|
|
|
||
Non-accrual investments at fair value |
$ |
18,897 |
|
|
$ |
7,033 |
|
|
Non-accrual investments as a percentage of debt investments at fair value |
|
1.0 |
% |
|
|
0.4 |
% |
|
Number of investments on non-accrual |
|
2 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
||
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 |
|
12.3 |
% |
|
|
12.4 |
% |
|
Weighted average yield on broadly syndicated loans |
|
8.3 |
% |
|
|
8.4 |
% |
|
Weighted average yield on total debt portfolio |
|
11.7 |
% |
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
||
Investment activity during the quarter ended: |
|
|
|
|
|
|
||
Gross new investment commitments |
$ |
171,836 |
|
(1) |
$ |
463,753 |
|
(2) |
Principal amount of investments funded |
$ |
166,161 |
|
(1) |
$ |
449,601 |
|
(2) |
Principal amount of investments sold or repaid |
$ |
(98,968 |
) |
(1) |
$ |
(32,381 |
) |
(2) |
Net principal amount of investments funded |
$ |
67,193 |
|
|
$ |
417,220 |
|
|
_________________ |
|
|
|
|
|
|
||
(1) For the quarter ending June 30, 2024, broadly syndicated loans represent |
||||||||
(2) For the quarter ending March 31, 2024, broadly syndicated loans represent |
Liquidity and Capital Resources
As of June 30, 2024, the Company had
On April 3, 2024, the Company, and its wholly owned, special purpose financing subsidiary, Kayne Anderson BDC Financing, LLC, amended the senior secured revolving funding facility (the “Revolving Funding Facility”). Under the terms of the third amendment, the commitment amount was increased from
The Company received net cash proceeds of
As of June 30, 2024, the Company’s debt-to-equity ratio was 0.53x and its asset coverage ratio was
Recent Developments
-
On August 7, 2024, the Board of Directors of the Company declared a regular dividend to common stockholders in the amount of
per share. The dividend will be paid on October 15, 2024 to stockholders of record as of the close of business on September 30, 2024.$0.40
Conference Call Information
KBDC will host a conference call at 10:00 am ET on Wednesday, August 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: +1 785-424-1789
- Conference ID: KBDC2Q
Webcast Link
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 800-934-7612 (domestic) and +1 402-220-6980 (international). The replay will be available until August 28, 2024.
Kayne Anderson BDC, Inc. |
||||||||
Consolidated Statements of Assets and Liabilities |
||||||||
(amounts in 000’s, except share and per share amounts) |
||||||||
|
|
June 30, 2024 |
|
December 31, 2023 |
||||
Assets: |
|
(Unaudited) |
|
|
||||
Investments, at fair value: |
|
|
|
|
||||
Long-term investments (amortized cost of |
|
$ |
1,847,058 |
|
|
$ |
1,363,498 |
|
Short-term investments (amortized cost of |
|
|
20,344 |
|
|
|
12,802 |
|
Cash and cash equivalents |
|
|
20,271 |
|
|
|
34,069 |
|
Receivable for principal payments on investments |
|
|
5,280 |
|
|
|
104 |
|
Interest receivable |
|
|
16,780 |
|
|
|
12,874 |
|
Prepaid expenses and other assets |
|
|
117 |
|
|
|
319 |
|
Total Assets |
|
$ |
1,909,850 |
|
|
$ |
1,423,666 |
|
|
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Corporate Credit Facility |
|
$ |
75,000 |
|
|
$ |
234,000 |
|
Unamortized Corporate Credit Facility issuance costs |
|
|
(1,321 |
) |
|
|
(1,715 |
) |
Revolving Funding Facility |
|
|
389,000 |
|
|
|
306,000 |
|
Unamortized Revolving Funding Facility issuance costs |
|
|
(5,808 |
) |
|
|
(2,019 |
) |
Revolving Funding Facility II |
|
|
83,000 |
|
|
|
70,000 |
|
Unamortized Revolving Funding Facility II issuance costs |
|
|
(1,571 |
) |
|
|
(1,805 |
) |
Subscription Credit Agreement |
|
|
- |
|
|
|
10,750 |
|
Unamortized Subscription Credit Facility issuance costs |
|
|
- |
|
|
|
(41 |
) |
Notes |
|
|
75,000 |
|
|
|
75,000 |
|
Unamortized notes issuance costs |
|
|
(748 |
) |
|
|
(851 |
) |
Payable for investments purchased |
|
|
72,322 |
|
|
|
- |
|
Distributions payable |
|
|
28,446 |
|
|
|
22,050 |
|
Management fee payable |
|
|
3,780 |
|
|
|
2,996 |
|
Incentive fee payable |
|
|
- |
|
|
|
14,195 |
|
Accrued expenses and other liabilities |
|
|
14,574 |
|
|
|
11,949 |
|
Accrued excise tax expense |
|
|
- |
|
|
|
101 |
|
Total Liabilities |
|
$ |
731,674 |
|
|
$ |
740,610 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Net Assets: |
|
|
|
|
|
|
||
Common Shares, |
|
$ |
71 |
|
|
$ |
42 |
|
Additional paid-in capital |
|
|
1,154,108 |
|
|
|
669,990 |
|
Total distributable earnings (deficit) |
|
|
23,997 |
|
|
|
13,024 |
|
Total Net Assets |
|
$ |
1,178,176 |
|
|
$ |
683,056 |
|
Total Liabilities and Net Assets |
|
$ |
1,909,850 |
|
|
$ |
1,423,666 |
|
Net Asset Value Per Common Share |
|
$ |
16.57 |
|
|
$ |
16.42 |
|
Kayne Anderson BDC, Inc. |
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Consolidated Statements of Operations |
|||||||||||||||
(amounts in 000’s, except share and per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
For the three months ended |
|
For the six months ended |
||||||||||||
June 30,
|
|
June 30,
|
June 30,
|
|
June 30,
|
||||||||||
Income: |
|
|
|
|
|
|
|
||||||||
Investment income from investments: |
|
|
|
|
|
|
|
||||||||
Interest income |
$ |
51,991 |
|
|
$ |
40,746 |
|
|
$ |
98,228 |
|
|
$ |
77,112 |
|
Dividend income |
|
462 |
|
|
|
- |
|
|
|
719 |
|
|
|
- |
|
Total Investment Income |
|
52,453 |
|
|
|
40,746 |
|
|
|
98,947 |
|
|
|
77,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Management fees |
|
4,251 |
|
|
|
2,848 |
|
|
|
7,773 |
|
|
|
5,533 |
|
Incentive fees |
|
4,109 |
|
|
|
2,420 |
|
|
|
6,740 |
|
|
|
4,558 |
|
Interest expense |
|
13,239 |
|
|
|
13,002 |
|
|
|
28,895 |
|
|
|
24,525 |
|
Professional fees |
|
375 |
|
|
|
143 |
|
|
|
639 |
|
|
|
293 |
|
Directors fees |
|
158 |
|
|
|
178 |
|
|
|
305 |
|
|
|
317 |
|
Other general and administrative expenses |
|
508 |
|
|
|
422 |
|
|
|
979 |
|
|
|
871 |
|
Total Expenses |
|
22,640 |
|
|
|
19,013 |
|
|
|
45,331 |
|
|
|
36,097 |
|
Less: Management fee waiver |
|
(471 |
) |
|
|
- |
|
|
|
(471 |
) |
|
|
- |
|
Less: Incentive fee waiver |
|
(4,109 |
) |
|
|
- |
|
|
|
(4,109 |
) |
|
|
- |
|
Net Expenses |
|
18,060 |
|
|
|
19,013 |
|
|
|
40,751 |
|
|
|
36,097 |
|
Net Investment Income (Loss) |
|
34,393 |
|
|
|
21,733 |
|
|
|
58,196 |
|
|
|
41,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Realized and unrealized gains (losses) on investments |
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
||||
Investments |
|
(138 |
) |
|
|
- |
|
|
|
(138 |
) |
|
|
- |
|
Total net realized gains (losses) |
|
(138 |
) |
|
|
- |
|
|
|
(138 |
) |
|
|
- |
|
Net change in unrealized gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
||||
Investments |
|
(3,075 |
) |
|
|
(731 |
) |
|
|
877 |
|
|
|
(606 |
) |
Total net change in unrealized gains (losses) |
|
(3,075 |
) |
|
|
(731 |
) |
|
|
877 |
|
|
|
(606 |
) |
Total realized and unrealized gains (losses) |
|
(3,213 |
) |
|
|
(731 |
) |
|
|
739 |
|
|
|
(606 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ |
31,180 |
|
|
$ |
21,002 |
|
|
$ |
58,935 |
|
|
$ |
40,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted net investment income per common share |
$ |
0.51 |
|
|
$ |
0.56 |
|
|
$ |
1.03 |
|
|
$ |
1.10 |
|
Basic and diluted net increase in net assets resulting from operations |
$ |
0.46 |
$ |
0.54 |
|
|
$ |
1.05 |
$ |
1.08 |
|||||
Weighted Average Common Shares Outstanding - Basic and Diluted |
67,426,904 |
|
|
38,905,173 |
|
|
56,386,161 |
|
|
37,425,525 |
|
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240812455635/en/
Investor Relations
kaynebdc@kaynecapital.com
Source: Kayne Anderson BDC, Inc.
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