Kayne Anderson BDC, Inc. Announces September 30, 2025 Financial Results and Declares Fourth 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, today announced its financial results for the third quarter ended September 30, 2025.

Financial Highlights for the Quarter Ended September 30, 2025

“We delivered another solid quarter marked by strong origination activity, stable credit performance and a high-quality earnings mix. With nearly $300 million in new private credit investments at an average spread of 568bps over SOFR, we continue to see healthy deal flow in the core middle market, driven in-part by a recent pickup in M&A-related financing opportunities, which we believe bodes well for outlook in the near-term,” said Doug Goodwillie, Co-Chief Executive Officer.

“Despite broader market volatility and headlines around the private credit space, our target market broadly and portfolio specifically continue to demonstrate strong fundamentals. We remain defensively positioned with 94% of our portfolio invested in first-lien senior secured loans, lending at an average leverage level of 4.2x, lower than many of our peers, and continue to be pleased with credit performance of our loan book with a non-accrual rate of just 1.4%,” said Ken Leonard, Co-Chief Executive Officer. “We believe KBDC is well-positioned to continue its relative outperformance while generating attractive, risk-adjusted returns through varying market cycles.”

Selected Financial Highlights

As of

(in thousands, expect per share data)

September 30, 2025

June 30, 2025

Investment portfolio, at fair value

2,255,513

2,174,640

Total assets

2,337,968

2,255,991

Total debt outstanding, at principal

1,153,000

1,054,000

Net assets

1,140,096

1,157,331

Net asset value per share

16.34

16.37

Total debt-to-equity ratio

1.01x

0.91x

For the quarter ended

September 30, 2025

June 30, 2025

Net investment income per share

0.43

0.40

Net realized and unrealized gains (losses) per share (1)

(0.08)

(0.05)

Earnings per share

0.35

Regular dividend per share

0.40

Special dividend per share

0.10

(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 September 30, 2025 was $61.3 million, as compared to $57.3 million for the quarter ended June 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 and the impact of net additions to the portfolio during the third quarter. PIK income represented 3.5% of total interest income for the quarter ended September 30, 2025.

Net investment income for the quarter ended September 30, 2025 was $30.0 million or $0.43 per share as compared to $28.7 million or $0.40 per share for the quarter ended June 30, 2025. Net expenses for the third quarter were $31.3 million, as compared to $28.6 million for the quarter ended June 30, 2025. The increase was primarily the result of higher average borrowings on our credit facilities and increased base management fees as a partial fee waiver was in effect during the second quarter.

For the quarter ended September 30, 2025, the Company had a net change in unrealized losses on investments of $5.0 million. The unrealized losses for the quarter were primarily driven by negative fair value changes and quarterly amortization of original issue discounts, partially offset by new upfront fees for originations during the quarter. Additionally, the Company had $0.4 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)

September 30, 2025

June 30, 2025

Investments at fair value

2,255,513

2,174,640

Number of portfolio companies

108

114

Average portfolio company investment size

20,884

19,076

Asset class:

First lien debt

93.7%

98.0%

Subordinated debt

4.6%

0.8%

Equity

1.7%

1.2%

Non-accrual debt investments:

Non-accrual investments at fair value

30,974

34,535

Non-accrual investments as a percentage of debt investments at fair value

1.4%

1.6%

Number of investments on non-accrual

Interest rate type:

Percentage floating-rate

96.0%

100.0%

Percentage fixed-rate

4.0%

0.0%

Yields excluding non-income producing debt investments (at fair value):

Weighted average yield on private middle market loans

10.7%

10.9%

Weighted average yield on broadly syndicated loans

6.7%

6.9%

Weighted average yield on total debt portfolio

10.6%

Yields including non-income producing debt investments (at fair value):

Weighted average yield on private middle market loans

10.5%

10.7%

Weighted average yield on broadly syndicated loans

6.7%

6.9%

Weighted average yield on total debt portfolio

10.4%

Investment activity during the quarter ended:

Gross new investment commitments

295,492

(1)

128,675

(2)

Principal amount of investments funded

273,574

(1)

128,665

(2)

Principal amount of investments sold or repaid

(186,434)

(1)

(118,602)

(2)

Net principal amount of investments funded

87,140

10,063

(1) For the quarter ended September 30, 2025, broadly syndicated loans represent $0 of new investment commitments, $0 of investments funded and $112,952 of investments sold or repaid.

(2) For the quarter ended June 30, 2025, broadly syndicated loans represent $0 of new investment commitments, $0 of investments funded and $46,506 of investments sold or repaid.

Liquidity and Capital Resources

As of September 30, 2025, the Company had $75 million senior unsecured notes outstanding, $1,078 million borrowed under its credit facilities and cash and cash equivalents of $46.1 million (including investments in money market funds). As of that date, the Company had $322 million of undrawn commitments available on its credit facilities (subject to borrowing base restrictions and other conditions).

As of September 30, 2025, the Company’s debt-to-equity ratio was 1.01x and its asset coverage ratio was 199%. The Company targets a debt-to-equity ratio of 1.0x to 1.25x (which equates to asset coverage of 200% to 180%). During the third quarter, the Company reached the low end of its target debt-to-equity ratio range and expects to continue to grow its private credit portfolio. 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, November 11, 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

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 800-770-2030 (domestic) and +1 609-800-9909 (international) and conference ID of 2616610. The replay will be available until November 18, 2025.

Kayne Anderson BDC, Inc.

Consolidated Statements of Assets and Liabilities

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

September 30, 2025

December 31, 2024

Assets:

(Unaudited)

Investments, at fair value:

Non-controlled, non-affiliated investments (amortized cost of $2,134,139 and $1,956,617)

2,146,829

1,982,947

Non-controlled, affiliated investments (amortized cost of $113,426 and $15,438, respectively)

108,684

12,196

Investments in money market funds (amortized cost of $29,765 and $48,683)

29,765

48,683

Cash

16,360

22,375

Receivable for sales of investments

14,150

Receivable for principal payments on investments

334

540

Interest receivable

21,500

14,965

Prepaid expenses and other assets

346

958

Total Assets

2,337,968

2,082,664

Liabilities:

Corporate Credit Facility

301,000

250,000

Unamortized Corporate Credit Facility issuance costs

(3,636)

(3,235)

Revolving Funding Facility

570,000

420,000

Unamortized Revolving Funding Facility issuance costs

(5,228)

(4,746)

Revolving Funding Facility II

207,000

113,000

Unamortized Revolving Funding Facility II issuance costs

(2,233)

(1,251)

Notes

75,000

Unamortized notes issuance costs

(639)

(643)

Shares repurchased payable

706

Distributions payable

27,927

28,424

Management fee payable

5,583

3,712

Incentive fee payable

4,419

Accrued expenses and other liabilities

17,973

15,236

Accrued excise tax expense

825

Total Liabilities

1,197,872

896,322

Commitments and contingencies

Net Assets:

Common Shares, $0.001 par value; 100,000,000 shares authorized; 69,764,799 and 71,059,689 as of September 30, 2025 and December 31, 2024, respectively, issued and outstanding

Additional paid-in capital

1,133,350

1,152,396

Total distributable earnings (deficit)

6,676

33,875

Total Net Assets

1,140,096

1,186,342

Total Liabilities and Net Assets

2,337,968

2,082,664

Net Asset Value Per Common Share

16.34

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 Nine Months Ended

September 30

2025

2024

2025

2024

Income:

(Unaudited)

Investment income from investments:

Interest income from non-controlled, non-affiliated investments

58,898

57,541

171,032

155,015

Interest income from non-controlled, affiliated investments

2,063

754

Dividend income

412

278

821

997

Total Investment Income

61,373

57,819

173,916

156,766

Expenses:

Management fees

5,583

4,764

16,126

12,537

Incentive fees

4,419

5,605

13,361

12,345

Interest expense

20,207

16,069

55,716

44,964

Professional fees

369

403

1,082

1,042

Directors fees

158

474

463

Excise tax expense (benefit)

(43)

Other general and administrative expenses

591

563

1,775

1,542

Total Expenses

31,327

27,562

88,491

72,893

Less: Management fee waiver

(1,191)

(2,071)

(1,662)

Less: Incentive fee waiver

(5,605)

(9,714)

Net Expenses

31,327

20,766

86,420

61,517

Net Investment Income (Loss)

30,046

37,053

87,496

95,249

Realized and unrealized gains (losses) on investments

Net realized gains (losses):

Non-controlled, non-affiliated investments

(22)

534

(138)

Total net realized gains (losses)

(22)

534

(138)

Net change in unrealized gains (losses):

Non-controlled, non-affiliated investments

(5,407)

1,031

(13,464)

3,323

Non-controlled, affiliated investments

424

(528)

(1,501)

(1,943)

Total net change in unrealized gains (losses)

(4,983)

503

(14,965)

1,380

Total realized and unrealized gains (losses)

(5,005)

503

(14,431)

1,242

Income tax (expense) benefit on unrealized appreciation/depreciation on investments

(428)

(1,327)

Net Increase in Net Assets Resulting from Operations

24,613

37,556

71,738

96,491

Per Common Share Data:

Basic and diluted net investment income per common share

0.43

0.52

1.23

1.55

Basic and diluted net increase in net assets resulting from operations

0.35

0.53

1.01

1.57

Weighted Average Common Shares Outstanding - Basic and Diluted

70,430,331

71,083,885

70,852,621

61,321,163

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.