Kayne Anderson BDC, Inc. Announces March 31, 2026 Financial Results and Declares Second Quarter 2026 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 first quarter ended March 31, 2026.
Financial Highlights for the Quarter Ended March 31, 2026
“KBDC's stable performance in today’s market reinforces the differentiation of our value lending strategy," said Doug Goodwillie, Co-Chief Executive Officer. "Our focus on conservative structures in stable, staple industries and our negligible exposure to software positions us to navigate uncertainty from a place of strength and to continue delivering attractive risk-adjusted returns over the long term."
"First quarter results demonstrate the consistency and resiliency of our credit approach," said Ken Leonard, Co-Chief Executive Officer. "NII of $0.43 per share again exceeded our $0.40 dividend, on a 93% first-lien focused portfolio yielding 10.1%. Our selective approach resulted in new originations priced at SOFR plus 549 basis points aimed at attractive risk-adjusted opportunities underwritten with our consistent time-tested, conservative approach."
Selected Financial Highlights
As of
(in thousands, except per share data)
March 31, 2026
December 31, 2025
Investment portfolio, at fair value
$
2,194,304
$
2,198,421
Total assets
$
2,252,359
$
2,286,702
Total debt outstanding, at principal
$
1,138,000
$
1,130,000
Net assets
$
1,079,192
$
1,109,931
Net asset value per share
$
16.23
$
16.32
Total debt-to-equity ratio
1.05x
1.02x
For the quarter ended
March 31, 2026
December 31, 2025
Net investment income per share
$
0.43
$
0.44
Net realized and unrealized gains (losses) per share (1)
$
(0.17)
$
(0.12)
Earnings per share
$
0.26
$
0.32
Regular dividend per share
$
0.40
$
0.40
Results of Operations
Total investment income for the quarter ended March 31, 2026 was $57.3 million, as compared to $61.9 million for the quarter ended December 31, 2025. The decrease was primarily driven by lower average reference rates and less accelerated OID and repayment fees related to realization activity, partially offset by PIK interest income from Arborworks Acquisition resulting from the change from non-accrual to accrual status. PIK income represented 7.5% of total interest income for the quarter, as compared to 7.4% for the quarter ended December 31, 2025. For the quarter ended March 31, 2026, 3.9% of total interest income relates to PIK interest recognized on the Company’s debt investments in Arborworks Acquisition, LLC following the change to accrual status.
Net investment income for the quarter ended March 31, 2026 was $28.9 million or $0.43 per share as compared to $30.1 million or $0.44 per share for the quarter ended December 31, 2025. Net expenses for the quarter were $28.4 million, as compared to $31.8 million for the quarter ended December 31, 2025. The decrease was primarily related to lower interest expense and lower incentive fees during the quarter.
For the quarter ended March 31, 2026, the Company had realized losses of $2.3 million and had a net change in unrealized losses on investments of $9.0 million. In February 2026, the Company completed a restructure of its debt investment in Regiment Security Partners LLC whereby the existing first lien senior secured debt was exchanged for new debt that included a tranche of last out first lien senior secured debt, and the Company recognized a $2.0 million realized loss as a result of the debt restructure. The Company also recognized a $0.3 million realized loss due to the rotation out of one of its broadly syndicated loans. The unrealized losses for the quarter were primarily driven by decreases in fair value and quarterly amortization of original issue discounts, partially offset by new upfront fees for originations during the quarter.
Portfolio and Investment Activity
As of
($ in thousands)
March 31, 2026
December 31, 2025
Investments at fair value
$
2,194,304
$
2,198,421
Number of portfolio companies
105
107
Average portfolio company investment size
$
20,898
$
20,546
Asset class:
First lien debt
92.6%
93.2%
Subordinated debt
5.5%
4.9%
Equity
1.9%
1.9%
Non-accrual debt investments:
Non-accrual investments at fair value
$
53,685
$
30,951
Non-accrual investments as a percentage of debt investments at fair value
2.5%
1.4%
Interest rate type:
Percentage floating-rate
95.1%
95.7%
Percentage fixed-rate
4.9%
4.3%
Yields excluding non-income producing debt investments (at fair value):
Weighted average yield on private middle market loans
10.2%
10.4%
Weighted average yield on broadly syndicated loans
6.5%
6.0%
Weighted average yield on total debt portfolio
10.1%
10.3%
Yields including non-income producing debt investments (at fair value):
Weighted average yield on private middle market loans
9.9%
10.2%
Weighted average yield on broadly syndicated loans
6.5%
6.0%
Weighted average yield on total debt portfolio
9.9%
10.1%
Investment activity during the quarter ended:
Gross new investment commitments
$
92,510
(1)
$
112,814
(2)
Principal amount of investments funded
$
99,102
(1)
$
99,336
(2)
Principal amount of investments sold or repaid
$
(91,995)
(1)
$
(151,507)
(2)
Net principal amount of investments funded (repaid)
$
7,107
$
(52,171)
_________________
(1) For the quarter ending March 31, 2026, broadly syndicated loans represent $0 of new investment commitments, $0 of investments funded and $17,357 of investments sold or repaid.
(2) For the quarter ending December 31, 2025, broadly syndicated loans represent $0 of new investment commitments, $0 of investments funded and $19,810 of investments sold or repaid.
Liquidity and Capital Resources
As of March 31, 2026, the Company had $275 million senior unsecured notes outstanding, $863 million borrowed under its credit facilities and cash and cash equivalents of $32.7 million (including investments in money market funds). As of that date, the Company had $537 million of undrawn commitments available on its credit facilities (subject to borrowing base restrictions and other conditions).
As of March 31, 2026, the Company’s debt-to-equity ratio was 1.05x and its asset coverage ratio was 195%. 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 may operate above or below its target based on market conditions.
Recent Developments
Conference Call Information
KBDC will host a conference call at 10:00 am ET on Tuesday, May 12, 2026, 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
Webcast Link
https://events.q4inc.com/attendee/575759472
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) and conference ID of 2616610. The replay will be available until May 19, 2026.
Kayne Anderson BDC, Inc.
Consolidated Statements of Assets and Liabilities
(amounts in 000’s, except share and per share amounts)
March 31,
December 31,
2026
2025
Assets:
(Unaudited)
Investments, at fair value:
Non-controlled, non-affiliated investments (amortized cost of $2,052,231 and $2,079,041)
$
2,058,477
$
2,084,737
Non-controlled, affiliated investments (amortized cost of $129,946 and $118,459)
125,491
113,684
Controlled, affiliated investments (amortized cost of $20,228 and $0)
10,336
-
Investments in money market funds (amortized cost of $18,348 and $25,409)
18,348
25,409
Cash
14,314
18,027
Deposits for investments
-
13,015
Receivable for sales of investments
-
7,168
Receivable for principal payments on investments
722
308
Interest receivable
24,420
24,063
Prepaid expenses and other assets
251
291
Total Assets
$
2,252,359
$
2,286,702
Liabilities:
Corporate Credit Facility
$
115,000
$
135,000
Unamortized Corporate Credit Facility issuance costs
(3,135)
(3,372)
Revolving Funding Facility
553,000
525,000
Unamortized Revolving Funding Facility issuance costs
(6,639)
(4,671)
Revolving Funding Facility II
195,000
195,000
Unamortized Revolving Funding Facility II issuance costs
(1,970)
(2,100)
Notes
273,822
274,701
Unamortized notes issuance costs
(2,362)
(2,560)
Shares repurchased payable
97
496
Distributions payable
26,595
27,213
Management fee payable
5,416
5,613
Incentive fee payable
3,111
3,935
Accrued expenses and other liabilities
15,232
22,041
Accrued excise tax expense
-
475
Total Liabilities
$
1,173,167
$
1,176,771
Commitments and contingencies
Net Assets:
Common Shares, $0.001 par value; 100,000,000 shares authorized; 66,481,923 and 67,998,184 as of March 31, 2026 and December 31, 2025, respectively, issued and outstanding
$
66
$
68
Additional paid-in capital
1,086,618
1,108,001
Total distributable earnings (deficit)
(7,492)
1,862
Total Net Assets
$
1,079,192
$
1,109,931
Total Liabilities and Net Assets
$
2,252,359
$
2,286,702
Net Asset Value Per Common Share
$
16.23
$
16.32
Kayne Anderson BDC, Inc.
Consolidated Statements of Operations
(amounts in 000’s, except share and per share amounts)
For the Three Months Ended
March 31,
2026
2025
Income:
(Unaudited)
(Unaudited)
Investment income from investments:
Interest income from non-controlled, non-affiliated investments
$
49,746
$
54,708
Interest income from non-controlled, affiliated investments
2,994
-
Payment-in-kind interest income from non-controlled, non-affiliated
investments
4,273
306
Dividend income
312
231
Total Investment Income
57,325
55,245
Expenses:
Management fees
5,416
5,131
Incentive fees
3,111
4,490
Interest expense
18,860
17,125
Professional fees
314
345
Directors fees
164
158
Excise tax expense (benefit)
(11)
(43)
Other general and administrative expenses
575
581
Total Expenses
28,429
27,787
Less: Management fee waiver
-
(1,283)
Net Expenses
28,429
26,504
Net Investment Income (Loss)
28,896
28,741
Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Non-controlled, non-affiliated investments
(2,247)
566
Total net realized gains (losses)
(2,247)
566
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments
(7,006)
(6,493)
Non-controlled, affiliated investments
321
(18)
Controlled, affiliated investments
(2,336)
-
Total net change in unrealized gains (losses)
(9,021)
(6,511)
Total realized and unrealized gains (losses)
(11,268)
(5,945)
Income tax (expense) benefit on unrealized appreciation/depreciation
on investments
(387)
(581)
Net Increase in Net Assets Resulting from Operations
$
17,241
$
22,215
Per Common Share Data:
Basic and diluted net investment income per common share
$
0.43
$
0.40
Basic and diluted net increase in net assets resulting from operations
$
0.26
$
0.31
Weighted Average Common Shares Outstanding - Basic and Diluted
67,144,353
71,234,684
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.