Kayne Anderson BDC, Inc. Announces December 31, 2025 Financial Results and Declares First 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 fourth quarter ended December 31, 2025.
Financial Highlights for the Quarter Ended December 31, 2025
“We remain proud of our investment performance and portfolio stability amid ongoing market volatility. We believe the current environment underscores the differentiation of our investment strategy, particularly the fact that we purposefully have the lowest software exposure in the BDC space at approximately 2% of our portfolio,” said Doug Goodwillie, Co-Chief Executive Officer. “We expect that our value lending strategy focused on lending at conservative leverage multiples to borrowers in stable and staple industries will continue to differentiate our platform over the long term.”
“During the fourth quarter, we maintained a healthy spread premium relative to the upper middle market, with new floating rate loan originations averaging 529 basis points over SOFR. Based on our current view of the market and our portfolio, we expect to be able to pay the $0.40 base dividend for all of 2026. We believe demonstrating the stability of our approach to direct lending is particularly important in the current market environment,” said Ken Leonard, Co-Chief Executive Officer.
Selected Financial Highlights
As of
(in thousands, expect per share data)
December 31, 2025
September 30, 2025
Investment portfolio, at fair value
$
2,198,421
$
2,255,513
Total assets
$
2,286,702
$
2,337,968
Total debt outstanding, at principal
$
1,130,000
$
1,153,000
Net assets
$
1,109,931
$
1,140,096
Net asset value per share
$
16.32
$
16.34
Total debt-to-equity ratio
1.02x
1.01x
For the quarter ended
December 31, 2025
September 30, 2025
Net investment income per share
$
0.44
$
0.43
Net realized and unrealized gains (losses) per share (1)
$
(0.12)
$
(0.08)
Earnings per share
$
0.32
$
0.35
Regular dividend per share
$
0.40
$
0.40
Special dividend per share
$
-
$
-
(1) Amounts shown may not correspond for the period as it includes the effect of the timing of the distribution, shares repurchased, and the issuance of common stock.
Results of Operations
Total investment income for the quarter ended December 31, 2025 was $61.9 million, as compared to $61.3 million for the quarter ended September 30, 2025. The increase was primarily driven by rotations out of the lower yielding broadly syndicated loans into middle market loans, accelerated amortization and fees earned from repayments, partially offset by lower SOFR rates. PIK income represented 7.4% and 3.9% of total interest income for the quarter and year ended December 31, 2025.
Net investment income for the quarter ended December 31, 2025 was $30.1 million or $0.44 per share as compared to $30.0 million or $0.43 per share for the quarter ended September 30, 2025. Net expenses for the fourth quarter were $31.8 million, as compared to $31.3 million for the quarter ended September 30, 2025. The increase was primarily the result of $0.5 million of excise taxes related to undistributed income for the year and higher interest expense, partially offset by lower incentive fees during the fourth quarter.
For the quarter ended December 31, 2025, the Company had realized losses of $0.6 million and had a net change in unrealized losses on investments of $7.2 million. 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. Additionally, the Company had $0.3 million of deferred income tax expense related to unrealized gains on equity investments in the Company’s wholly owned taxable subsidiary.
Portfolio and Investment Activity
As of
($ in thousands)
December 31, 2025
September 30, 2025
Investments at fair value
$
2,198,421
$
2,255,513
Number of portfolio companies
107
108
Average portfolio company investment size
$
20,546
$
20,884
Asset class:
First lien debt
93.2%
93.7%
Subordinated debt
4.9%
4.6%
Equity
1.9%
1.7%
Non-accrual debt investments:
Non-accrual investments at fair value
$
30,951
$
30,974
Non-accrual investments as a percentage of debt investments at fair value
1.4%
1.4%
Number of investments on non-accrual
5
5
Interest rate type:
Percentage floating-rate
95.7%
96.0%
Percentage fixed-rate
4.3%
4.0%
Yields excluding non-income producing debt investments (at fair value):
Weighted average yield on private middle market loans
10.4%
10.7%
Weighted average yield on broadly syndicated loans
6.0%
6.7%
Weighted average yield on total debt portfolio
10.3%
10.6%
Yields including non-income producing debt investments (at fair value):
Weighted average yield on private middle market loans
10.2%
10.5%
Weighted average yield on broadly syndicated loans
6.0%
6.7%
Weighted average yield on total debt portfolio
10.1%
10.4%
Investment activity during the quarter ended:
Gross new investment commitments
$
112,814
(1)
$
295,492
(2)
Principal amount of investments funded
$
99,336
(1)
$
273,574
(2)
Principal amount of investments sold or repaid
$
(151,507)
(1)
$
(186,434)
(2)
Net principal amount of investments funded (repaid)
$
(52,171)
$
87,140
_________________
(1) 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.
(2) For the quarter ending September 30, 2025, broadly syndicated loans represent $0 of new investment commitments, $0 of investments funded and $112,952 of investments sold or repaid
Liquidity and Capital Resources
As of December 31, 2025, the Company had $275 million senior unsecured notes outstanding, $855 million borrowed under its credit facilities and cash and cash equivalents of $43.4 million (including investments in money market funds). As of that date, the Company had $545 million of undrawn commitments available on its credit facilities (subject to borrowing base restrictions and other conditions).
As of December 31, 2025, the Company’s debt-to-equity ratio was 1.02x and its asset coverage ratio was 198%. 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, March 3, 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/890378919
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 March 10, 2026.
Kayne Anderson BDC, Inc.
Consolidated Statements of Assets and Liabilities
(amounts in 000’s, except share and per share amounts)
December 31,
December 31,
2025
2024
Assets:
Investments, at fair value:
Non-controlled, non-affiliated investments (amortized cost of $2,079,041 and $1,956,617)
$
2,084,737
$
1,982,947
Non-controlled, affiliated investments (amortized cost of $118,459 and $15,438, respectively)
113,684
12,196
Investments in money market funds (amortized cost of $25,409 and $48,683)
25,409
48,683
Cash
18,027
22,375
Deposits for investments
13,015
-
Receivable for sales of investments
7,168
-
Receivable for principal payments on investments
308
540
Interest receivable
24,063
14,965
Prepaid expenses and other assets
291
958
Total Assets
$
2,286,702
$
2,082,664
Liabilities:
Corporate Credit Facility
$
135,000
$
250,000
Unamortized Corporate Credit Facility issuance costs
(3,372)
(3,235)
Revolving Funding Facility
525,000
420,000
Unamortized Revolving Funding Facility issuance costs
(4,671)
(4,746)
Revolving Funding Facility II
195,000
113,000
Unamortized Revolving Funding Facility II issuance costs
(2,100)
(1,251)
Notes
274,701
75,000
Unamortized notes issuance costs
(2,560)
(643)
Shares repurchased payable
496
-
Distributions payable
27,213
28,424
Management fee payable
5,613
3,712
Incentive fee payable
3,935
-
Accrued expenses and other liabilities
22,041
15,236
Accrued excise tax expense
475
825
Total Liabilities
$
1,176,771
$
896,322
Commitments and contingencies
Net Assets:
Common Shares, $0.001 par value; 100,000,000 shares authorized; 67,998,184 and 71,059,689 as of December 31, 2025 and December 31, 2024, respectively, issued and outstanding
$
68
$
71
Additional paid-in capital
1,108,001
1,152,396
Total distributable earnings (deficit)
1,862
33,875
Total Net Assets
$
1,109,931
$
1,186,342
Total Liabilities and Net Assets
$
2,286,702
$
2,082,664
Net Asset Value Per Common Share
$
16.32
$
16.70
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
2025
2024
2025
2024
Income:
(Unaudited)
(Unaudited)
Investment income from investments:
Interest income from non-controlled, non-affiliated investments
$
54,392
$
55,282
$
220,909
$
208,178
Interest income from non-controlled, affiliated investments
2,700
-
4,763
754
Payment-in-kind interest income from non-controlled, non-affiliated investments
4,578
587
9,093
2,706
Dividend income
233
471
1,054
1,468
Total Investment Income
61,903
56,340
235,819
213,106
Expenses:
Management fees
5,613
4,950
21,739
17,487
Incentive fees
3,935
5,104
17,296
17,449
Interest expense
20,645
16,552
76,361
61,516
Professional fees
350
461
1,432
1,503
Directors fees
164
158
638
621
Excise tax expense (benefit)
474
825
431
817
Other general and administrative expenses
606
609
2,381
2,159
Total Expenses
31,787
28,659
120,278
101,552
Less: Management fee waiver
-
(1,238)
(2,071)
(2,900)
Less: Incentive fee waiver
-
(5,104)
-
(14,818)
Net Expenses
31,787
22,317
118,207
83,834
Net Investment Income (Loss)
30,116
34,023
117,612
129,272
Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Non-controlled, non-affiliated investments
(613)
708
(79)
570
Total net realized gains (losses)
(613)
708
(79)
570
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments
(7,172)
1,460
(20,636)
4,783
Non-controlled, affiliated investments
(32)
(25)
(1,533)
(1,968)
Total net change in unrealized gains (losses)
(7,204)
1,435
(22,169)
2,815
Total realized and unrealized gains (losses)
(7,817)
2,143
(22,248)
3,385
Income tax (expense) benefit on unrealized appreciation/depreciation on investments
(331)
(717)
(1,658)
(717)
Net Increase in Net Assets Resulting from Operations
$
21,968
$
35,449
$
93,706
$
131,940
Per Common Share Data:
Basic and diluted net investment income per common share
$
0.44
$
0.48
$
1.67
$
2.03
Basic and diluted net increase in net assets resulting from operations
$
0.32
$
0.50
$
1.33
$
2.07
Weighted Average Common Shares Outstanding - Basic and Diluted
68,482,556
71,032,941
70,255,235
63,762,377
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.