What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-08-05 compared with 2021-05-06 · 507 added, 381 removed, 2276 unchanged (28% of the section changed)

4 unchanged sentences

Investments at fair value:

Non-Control / Non-Affiliate investments (cost of $1,389,212,763 and $1,318,614,617 as of March 31, 2021 and December 31, 2020, respectively) $ 1,401,742,025 $ 1,325,783,281

Affiliate investments (cost of $95,442,223 and $76,055,873 as of March 31, 2021 and December 31, 2020, respectively) 100,429,674 78,598,633

Control investments (cost of $30,326,428 and $25,826,428 as of March 31, 2021 and December 31, 2020, respectively) 26,386,362 25,855,796

Short-term investments (cost of $73,569,174 and $65,558,227 as of March 31, 2021 and December 31, 2020, respectively) 73,565,676 65,558,227

Non-Control / Non-Affiliate investments (cost of $1,397,993,028 and $1,318,614,617 as of June 30, 2021 and December 31, 2020, respectively)

$ 1,414,823,146 $ 1,325,783,281

Affiliate investments (cost of $114,383,398 and $76,055,873 as of June 30, 2021 and December 31, 2020, respectively)

126,432,371 78,598,633

Control investments (cost of $25,826,428 and $25,826,428 as of June 30, 2021 and December 31, 2020, respectively)

23,279,660 25,855,796

Short-term investments (cost of $10,574,196 and $65,558,227 as of June 30, 2021 and December 31, 2020, respectively)

10,574,196 65,558,227

Total investments at fair value 1,575,109,373 1,495,795,937

Cash (restricted cash of $3,488,403 and $3,488,336 at March 31, 2021 and December 31, 2020, respectively) 21,168,184 62,651,340

Foreign currencies (cost of $19,342,513 and $29,555,465 as of March 31, 2021 and December 31, 2020, respectively) 19,346,907 29,836,121

Cash (restricted cash of $0 and $3,488,336 at June 30, 2021 and December 31, 2020, respectively)

21,559,624 62,651,340

Foreign currencies (cost of $9,194,416 and $29,555,465 as of June 30, 2021 and December 31, 2020, respectively)

9,144,010 29,836,121

Interest and fees receivable 26,718,726 21,617,843

Prepaid expenses and other assets 2,318,215 2,014,558

Credit support agreement (cost of $13,600,000 as of both March 31, 2021 and December 31, 2020) 12,000,000 13,600,000

Credit support agreement (cost of $13,600,000 as of both June 30, 2021 and December 31, 2020)

14,300,006 13,600,000

Deferred financing fees 3,475,563 4,110,564

12 unchanged sentences

Commitments and contingencies (Note 7)

Common stock, $0.001 par value per share (150,000,000 shares authorized and 65,316,085 shares issued and outstanding as of both March 31, 2021 and December 31, 2020) 65,316 65,316

Common stock, $0.001 par value per share (150,000,000 shares authorized and 65,316,085 shares issued and outstanding as of both June 30, 2021 and December 31, 2020)

65,316 65,316

Additional paid-in capital 1,027,707,047 1,027,707,047

6 unchanged sentences

Unaudited Consolidated Statements of Operations

Ended Three Months

2021 March 31,

Six Months Ended

2021 June 30,

2020 June 30,

2021 June 30,

Investment income:

1 unchanged sentence

Non-Control / Non-Affiliate investments $ 26,597,095 $ 15,249,065 $ 51,693,420 $ 32,645,476

Affiliate investments 109,301 — 109,301 —

Control investments 108,429 — 215,667 —

2 unchanged sentences

Dividend income:

Non-Control / Non-Affiliate investments 33,027 2,603 33,027 2,603

Affiliate investments 361,874 — 433,374 —

2 unchanged sentences

Non-Control / Non-Affiliate investments 2,411,851 650,433 4,384,913 1,611,426

Affiliate investments 1,301 — 1,301 —

Control investments 155,303 — 315,416 —

18 unchanged sentences

Unaudited Consolidated Statements of Operations — (Continued)

Ended Three Months

2021 March 31,

Six Months Ended

2021 June 30,

2020 June 30,

2021 June 30,

Realized and unrealized gains (losses) on investments, credit support agreement and foreign currency transactions:

15 unchanged sentences

Loss on extinguishment of debt — (306,202) — (443,592)

Benefit from taxes 410 19,999

Benefit from (provision for) taxes (1,700) (2,532) (1,290) 17,467

Net increase (decrease) in net assets resulting from operations $ 29,308,031 $ 54,748,708 $ 51,796,310 $ (57,773,039)

9 unchanged sentences

Capital Total Distributable Earnings (Loss) Total

Three Months Ended June 30, 2020

of Shares Par

Balance, December 31, 2019 48,950,803 $ 48,951 $ 853,766,370 $ (282,940,612) $ 570,874,709

Balance, March 31, 2020 48,288,822 $ 48,289 $ 848,982,942 $ (403,286,323) $ 445,744,908

Net investment income — — — 6,529,129 6,529,129

2 unchanged sentences

Loss on extinguishment of debt — — — (306,202) (306,202)

Provision for taxes — — — (2,532) (2,532)

Dividends / distributions — — — (7,673,880) (7,673,880)

Purchases of shares in repurchase plan (327,069) (327) (2,346,215) — (2,346,542)

Balance, June 30, 2020 47,961,753 $ 47,962 $ 846,636,727 $ (356,211,495) $ 490,473,194

Common Stock Additional

Capital Total Distributable Earnings (Loss) Total

Three Months Ended June 30, 2021

of Shares Par

Balance, March 31, 2021 65,316,085 $ 65,316 $ 1,027,707,047 $ (299,889,616) $ 727,882,747

Net investment income — — — 14,557,658 14,557,658

Net realized gain on investments / foreign currency transactions — — — 342,660 342,660

Net unrealized appreciation of investments / CSA / foreign currency transactions — — — 14,409,413 14,409,413

Provision for taxes — — — (1,700) (1,700)

Dividends / distributions — — — (13,063,217) (13,063,217)

Balance, June 30, 2021 65,316,085 $ 65,316 $ 1,027,707,047 $ (283,644,802) $ 744,127,561

See accompanying notes.

Barings BDC, Inc.

Unaudited Consolidated Statements of Changes in Net Assets — (Continued)

Common Stock Additional

Capital Total Distributable Earnings (Loss) Total

Six Months Ended June 30, 2020

of Shares Par

1 unchanged sentence

Net investment income — — — 13,823,198 13,823,198

Net realized loss on investments / foreign currency transactions — — — (16,817,369) (16,817,369)

Net unrealized depreciation of investments / foreign currency transactions — — — (54,352,743) (54,352,743)

Loss on extinguishment of debt — — — (443,592) (443,592)

Income tax benefit — — — 17,467 17,467

Dividends / distributions — — — (15,497,844) (15,497,844)

Purchases of shares in repurchase plan (989,050) (989) (7,129,643) — (7,130,632)

Balance, June 30, 2020 47,961,753 $ 47,962 $ 846,636,727 $ (356,211,495) $ 490,473,194

Common Stock Additional

Capital Total Distributable Earnings (Loss) Total

Six Months Ended June 30, 2021

of Shares Par

Balance, December 31, 2020 65,316,085 $ 65,316 $ 1,027,707,047 $ (309,967,839) $ 717,804,524

Net investment income — — — 28,931,792 28,931,792

Net realized gain on investments / foreign currency transactions — — — 2,182,240 2,182,240

Net unrealized appreciation of investments / CSA / foreign currency transactions — — — 20,683,568 20,683,568

Benefit from taxes — — — 410 410

Provision for taxes — — — (1,290) (1,290)

Dividends / distributions — — — (25,473,273) (25,473,273)

Deemed contribution - from Adviser — — — — —

Balance, March 31, 2021 65,316,085 $ 65,316 $ 1,027,707,047 $ (299,889,616) $ 727,882,747

Balance, June 30, 2021 65,316,085 $ 65,316 $ 1,027,707,047 $ (283,644,802) $ 744,127,561

See accompanying notes.

1 unchanged sentence

Unaudited Consolidated Statements of Cash Flows

Three Months Ended Three Months Ended

March 31, 2021 March 31, 2020

Six Months Ended

June 30, 2021 June 30, 2020

Cash flows from operating activities:

9 unchanged sentences

Net unrealized (appreciation) depreciation of investments (16,591,531) 54,740,381

Net unrealized depreciation of CSA 1,600,000 —

Net unrealized appreciation of CSA (700,006) —

Net unrealized appreciation of foreign currency transactions (3,392,031) (387,638)

27 unchanged sentences

Unaudited Consolidated Schedule of Investments

March 31, 2021

June 30, 2021

Portfolio Company (6)

2 unchanged sentences

Non–Control / Non–Affiliate Investments:

1A Smart Start LLC (0.4%)* (7) (8) (11)

Technology Distributors Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 9.5% Cash, Acquired 06/21, Due 05/28) $ 3,001,138 $ 2,956,488 $ 2,956,121

3,001,138 2,956,488 2,956,121

1WorldSync, Inc.

9 unchanged sentences

24,685,119 24,465,639 21,007,036

ADE Holdings (d/b/a AD Education)

(0.7%)* (3) (7) (8) (16)

Education Services First Lien Senior Secured Term Loan (EURIBOR + 5.0%, 5.0% Cash, Acquired 01/20, Due 01/27) 5,244,442 4,981,803 5,244,442

5,244,442 4,981,803 5,244,442

Advantage Software Company (The), LLC (2.6%)* (7) (8)

Advertising, Printing & Publishing First Lien Senior Secured Term Loan (LIBOR + 6.5%, 7.5% Cash, Acquired 01/21, Due 01/27) (11)

18,302,262 17,848,072 17,844,705

Class A Partnership Units (7,054.59 units, Acquired 01/21) 705,459 720,602

11 unchanged sentences

9,425,284 9,281,629 9,254,687

Ahead DB Borrower, LLC.

(0.3%)* (7) (8) (12)

Technology Distributors Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 9.5% Cash, Acquired 10/20, Due 10/28) 2,139,295 2,077,504 2,075,117

2,139,295 2,077,504 2,075,117

Air Canada 2020-2 Class B Pass Through Trust (1.0%)* Airlines Structured Secured Note - Class B (9.0% Cash, Acquired 09/20, Due 10/25) 6,835,161 6,835,161 7,587,028

6,835,161 6,835,161 7,587,028

American Dental Partners, Inc.

Air Comm Corporation, LLC (0.4%)* (7) (8) (11)

Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.3% Cash, Acquired 06/21, Due 06/27) 2,972,973 2,872,973 2,872,973

2,972,973 2,872,973 2,872,973

Health Care Services First Lien Senior Secured Term Loan (LIBOR + 4.25%, 5.3% Cash, Acquired 11/18, Due 03/23) 9,775,000 9,763,132 9,452,425

AIT Worldwide Logistics Holdings, Inc.

(0.9%)* (7) (8)

American Scaffold, Inc.

Transportation Services Second Lien Senior Secured Term Loan (LIBOR + 7.75%, 8.5% Cash, Acquired 04/21, Due 04/28) (11)

6,460,345 6,310,043 6,314,988

Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 09/19, Due 09/25) 9,662,226 9,493,555 9,662,226

Partnership Units (348.68 units, Acquired 04/21) 348,678 351,149

6,460,345 6,658,721 6,666,137

Alpine US Bidco LLC (2.4%)* (7) (8) (11)

Agricultural Products Second Lien Senior Secured Term Loan (LIBOR + 9.0%, 9.8% Cash, Acquired 05/21, Due 05/29) 18,156,509 17,618,677 18,156,509

18,156,509 17,618,677 18,156,509

Anagram Holdings, LLC

23 unchanged sentences

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2021

June 30, 2021

Portfolio Company (6)

10 unchanged sentences

2,735,690 2,554,595 2,713,805

First Lien Senior Secured Term Loan (LIBOR + 5.5%, 5.8% Cash, Acquired 05/21, Due 12/27) (11)

671,922 652,110 666,547

3,407,612 3,206,705 3,380,352

Armstrong Transport Group (Pele Buyer, LLC ) (1.0%)* (7) (8)

Air Freight & Logistics First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 06/19, Due 06/24) (11)

5,327,863 5,261,469 5,306,552

First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 07/20, Due 06/24) (12)

1,934,530 1,904,336 1,934,530

7,262,393 7,165,805 7,241,082

Ascensus Specialties, LLC

8 unchanged sentences

1,660,261 1,517,769 1,637,017

First Lien Senior Secured Term Loan (SONIA + 6.25%, 6.3% Cash, Acquired 04/21, Due 12/26) (22)

925,572 895,411 900,118

2,585,833 2,413,180 2,537,135

AVSC Holding Corp.

31 unchanged sentences

15,839,726 15,048,263 15,440,924

Brown Machine Group Holdings, LLC (0.9%)* (7) (8) (9)

Industrial Equipment First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 10/18, Due 10/24) 6,722,144 6,662,673 6,722,144

6,722,144 6,662,673 6,722,144

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2021

June 30, 2021

Portfolio Company (6)

1 unchanged sentence

Amount Cost Fair

Brown Machine Group Holdings, LLC (0.9%)* (7) (8) (9)

Industrial Equipment First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 10/18, Due 10/24) $ 6,633,915 $ 6,579,303 $ 6,633,915

6,633,915 6,579,303 6,633,915

Cadent, LLC (f/k/a Cross MediaWorks) (1.0%)* (7) (8) (9)

1 unchanged sentence

7,532,846 7,497,997 7,532,846

Canadian Orthodontic Partners Corp.(0.6%)* (3) (7) (8) (21)

Healthcare First Lien Senior Secured Term Loan (CDOR + 6.5%, 7.5% Cash, Acquired 06/21, Due 03/26) 4,437,878 4,496,664 4,389,012

4,437,878 4,496,664 4,389,012

Carlson Travel, Inc (1.0%)* Business Travel Management First Lien Senior Secured Note (6.8% Cash, Acquired 09/20, Due 12/25) 3,000,000 2,362,500 2,758,140

Super Senior Senior Secured Term Loan (10.5% Cash, Acquired 12/20, Due 3/25) 4,239,000 4,153,781 4,408,560

Super Senior Secured Term Loan (10.5% Cash, Acquired 12/20, Due 3/25) 4,239,000 4,158,132 4,450,950

Common Stock (1,962 units, Acquired 11/20) (7)

20 unchanged sentences

Distributors First Lien Senior Secured Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 01/20, Due 01/25) (11)

4,144,368 4,082,369 3,968,232

LLC Units (8,782 units, Acquired 01/20) 351,709 281,165

2 unchanged sentences

Software First Lien Senior Secured Term Loan (LIBOR + 8.25%, 9.3% Cash, Acquired 04/20, Due 04/27) (9)

20,848,238 20,282,856 20,470,072

Class A Units (90.384 units, Acquired 04/20) 90,384 100,449

1 unchanged sentence

20,848,238 20,373,240 20,584,584

Confie Seguros Holding II Co.

(0.3%)* (7) (8) (9)

Insurance Brokerage Services Second Lien Senior Secured Term Loan (LIBOR + 8.5%, 8.6% Cash, Acquired 10/19, Due 11/25) 2,500,000 2,375,861 2,437,500

2,500,000 2,375,861 2,437,500

Contabo Finco S.À R.L (0.2%)* (3) (7) (8) (16)

1 unchanged sentence

1,437,733 1,313,423 1,419,484

Crash Champions (0.3%)* (7) (8) (11)

Automotive First Lien Senior Secured Term Loan (LIBOR + 5.25%, 6.3% Cash, Acquired 05/21, Due 08/25) 2,333,333 2,236,344 2,233,333

2,333,333 2,236,344 2,233,333

CSL DualCom (0.2%)* (3) (7) (8) (15)

13 unchanged sentences

12,248,503 12,054,416 12,174,828

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Discovery Education, Inc.

6 unchanged sentences

6,880,088 6,831,263 6,856,833

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Dragon Bidco (0.9%)* (3) (7) (8) (17)

Technology First Lien Senior Secured Term Loan (EURIBOR + 6.75%, 6.8% Cash, Acquired 04/21, Due 04/28) 6,878,223 6,805,615 6,706,268

6,878,223 6,805,615 6,706,268

DreamStart Bidco SAS (d/b/a SmartTrade) (0.3%)* (3) (7) (8) (17)

8 unchanged sentences

5,733,602 5,680,230 5,686,644

Exeter Property Group, LLC (2.6%)* (7) (8) (9)

Real Estate First Lien Senior Secured Term Loan (LIBOR + 4.5%, 4.6% Cash, Acquired 02/19, Due 08/24) 19,313,644 19,067,722 19,054,572

EPS NASS Parent, Inc.

(1.7%)* (7) (8) (11)

Electrical Components & Equipment First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 04/21, Due 04/28) 13,100,510 12,818,903 12,812,299

13,100,510 12,818,903 12,812,299

F24 (Stairway BidCo Gmbh) (0.2%)* (3) (7) (8) (16)

2 unchanged sentences

Ferrellgas L.P.

(0.4%)* (3) (7)

Oil & Gas Equipment & Services OpCo Preferred Units (2,886 units, Acquired 03/21) 2,799,420 2,943,720

12 unchanged sentences

12,003,840 11,708,081 11,839,334

FragilePak LLC (1.3%)* (7) (8)

Transportation Services First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 05/21, Due 05/27) (11)

9,375,000 8,993,430 8,988,281

Partnership Units (937.5 units, Acquired 05/21) 937,500 937,500

9,375,000 9,930,930 9,925,781

GoldenTree Loan Opportunities IX, Limited:

5 unchanged sentences

Medical Equipment Manufacturer Second Lien Loan (11.0% Cash, 1.0% PIK, Acquired 12/20, Due 12/24) 11,447,937 11,396,779 11,447,937

Series A Preferred Units (923,347.4 units) 1,446,615 1,671,259

Series C Preferred Units (460,652.6 units) 721,708 833,781

Common Stock (2 shares, Acquired 12/20) 1,078,778 1,388,826

3 unchanged sentences

1,042,968 956,712 883,175

Halo Technology Bidco, Inc.

(1.0%)* (7) (8) (11)

Technology First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 06/21, Due 06/27) 7,500,000 7,387,542 7,387,500

7,500,000 7,387,542 7,387,500

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Hawaiian Airlines 2020-1 Class B Pass Through Certificates (1.0%)* Airlines Structured Secured Note - Class B (11.3% Cash, Acquired 08/20, Due 09/25) $ 6,796,296 $ 6,796,296 $ 7,781,759

6 unchanged sentences

19,660,625 18,803,899 19,169,109

First Lien Senior Secured Term Loan (EURIBOR + 6.50%, 6.5% Cash, Acquired 07/20, Due 09/26) (16)

10,871,521 10,847,615 10,871,521

19,484,872 18,787,809 19,379,789

Highpoint Global LLC (0.7%)* (7) (23)

7 unchanged sentences

3,096,181 3,022,278 3,025,840

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

HTI Technology & Industries (1.7%)* (7) (23)

14 unchanged sentences

Electronic Instruments & Components First Lien Senior Secured Term Loan (LIBOR + 7.0%, 8.0% Cash, Acquired 11/19, Due 11/23) (11)

8,167,730 8,116,223 6,779,216

Warrant (68,950 units, Acquired 11/19) — —

8,167,730 8,116,223 6,779,216

IM Square (1.7%)* (3) (7) (8) (16)

Banking, Finance, Insurance & Real Estate First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 05/21, Due 05/28) 13,282,087 12,999,053 12,695,066

13,282,087 12,999,053 12,695,066

IMIA Holdings, Inc.

(2.0%)* (7) (8) (11)

Aerospace & Defense First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 04/21, Due 04/27) 15,000,000 14,682,265 14,700,000

15,000,000 14,682,265 14,700,000

Innovad Group II BV (0.8%)* (3) (7) (8) (16)

Beverage, Food & Tobacco First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 04/21, Due 04/28) 6,523,509 6,258,149 6,312,854

6,523,509 6,258,149 6,312,854

INOS 19-090 GmbH (0.7%)* (3) (7) (8) (16)

14 unchanged sentences

8,611,767 8,337,965 8,503,880

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Jedson Engineering, Inc.

(0.4%)* (7) (23)

Engineering & Construction Management First Lien Loan (12.0% Cash, 3.0% PIK, Acquired 12/20, Due 06/22) 3,000,000 3,000,000 3,000,000

Engineering & Construction Management First Lien Loan (12.0% Cash, Acquired 12/20, Due 06/22) $ 2,900,000 $ 2,900,000 $ 2,900,000

2,900,000 2,900,000 2,900,000

1 unchanged sentence

4,443,386 4,443,386 5,220,979

JF Acquisition, LLC (1.0%)* (7) (8) (11)

Automotive First Lien Senior Secured Term Loan (LIBOR + 5.5%, 6.5% Cash, Acquired 05/21, Due 07/24) 7,875,565 7,645,829 7,726,244

7,875,565 7,645,829 7,726,244

Kano Laboratories LLC (1.2%)* (7) (8) (11)

11 unchanged sentences

Healthcare & Pharmaceuticals First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 10/18, Due 10/24) (11)

34,296,589 33,670,721 34,296,589

Class A LLC Units (154,320 units, Acquired 10/18) 154,320 379,627

8 unchanged sentences

7,693,103 7,598,069 7,716,679

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Legal Solutions Holdings (1.4%)* (7) (23)

5 unchanged sentences

918,023 906,589 907,623

MC Group Ventures Corporation (0.1%)* (7)

Business Services Partnership Units (746.66 Units, Acquired 06/21) — 746,662 746,660

— 746,662 746,660

Media Recovery, Inc.

23 unchanged sentences

2,385,000 2,302,319 2,324,229

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

NGS US Finco, LLC (f/k/a Dresser Natural Gas Solutions) (1.6%)* (7) (8) (9)

2 unchanged sentences

Odeon Cinemas Group Limited (0.5%)* (3) (7)

Hotel, Gaming, & Leisure First Lien Senior Secured Term Loan (10.75% Cash, Acquired 02/21, Due 08/23) 1,376,251 1,332,439 1,390,014

First Lien Senior Secured Term Loan (10.75% Cash, Acquired 02/21, Due 08/23) 2,478,707 2,472,983 2,503,494

Hotel, Gaming, & Leisure First Lien Senior Secured Term Loan (10.75% PIK, Acquired 02/21, Due 08/23) 1,414,117 1,373,555 1,442,399

First Lien Senior Secured Term Loan (10.75% PIK, Acquired 02/21, Due 08/23) 2,567,534 2,548,970 2,618,884

3,981,651 3,922,525 4,061,283

(1.6%)* (3) (7) (8) (16)

Containers & Glass Products First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 06/21, Due 06/28) 12,327,172 12,227,940 11,956,524

12,327,172 12,227,940 11,956,524

Omni Intermediate Holdings, LLC (1.8%)* (7) (8) (9)

5 unchanged sentences

12,375,894 12,183,457 12,276,887

Oracle Vision Bidco Limited (0.4%)* (3) (7) (8) (22)

Healthcare First Lien Senior Secured Term Loan (SONIA + 5.25%, 5.3% Cash, Acquired 06/21, Due 05/28) 3,161,862 3,135,186 3,067,006

3,161,862 3,135,186 3,067,006

Origin Bidco Limited (0.1%)* (3) (7) (8)

Technology First Lien Senior Secured Term Loan (LIBOR + 5.75%, 6.8% Cash, Acquired 06/21, Due 06/28) (11)

597,094 580,783 580,674

First Lien Senior Secured Term Loan (EURIBOR + 5.75%, 5.8% Cash, Acquired 06/21, Due 06/28) (16)

393,386 393,173 382,568

990,480 973,956 963,242

Pacific Health Supplies Bidco Pty Limited (1.2%)* (3) (7) (8) (20)

19 unchanged sentences

21,945,000 21,537,034 21,769,440

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Premium Invest (2.5%)* (3) (7) (8) (16)

Brokerage, Asset Managers & Exchanges First Lien Senior Secured Term Loan (EURIBOR + 6.0%, 6.0% Cash, Acquired 06/21, Due 06/28) 19,211,590 19,023,975 18,543,038

19,211,590 19,023,975 18,543,038

Process Equipment, Inc.

9 unchanged sentences

Aerospace & Defense First Lien Senior Secured Term Loan (EURIBOR + 5.25%, 5.3% Cash, Acquired 03/21, Due 03/27) 774,296 755,137 774,296

First Lien Senior Secured Term Loan (EURIBOR + 6.0%, 6.0% Cash, Acquired 03/21, Due 03/28) 1,614,106 1,519,724 1,569,204

2,388,402 2,274,861 2,343,500

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

PSC UK Pty Ltd.

5 unchanged sentences

13,969,579 13,951,810 13,894,541

First Lien Senior Secured Term Loan (LIBOR + 6.25%, 6.8% Cash, Acquired 12/20, Due 12/27)

6,892,270 6,796,005 6,864,701

20,861,849 20,747,815 20,759,242

Radwell International, LLC (2.1%)* (7) (8) (11)

4 unchanged sentences

Technology First Lien Senior Secured Term Loan (LIBOR + 6.5%, 7.5% Cash, Acquired 08/20, Due 07/26) (11)

11,707,308 11,501,457 11,707,308

Partnership Equity (187,235 units, Acquired 03/21) 187,235 170,197

4 unchanged sentences

7,652,455 7,436,675 7,652,455

Resonetics, LLC (0.3%)* (7) (8) (11)

Health Care Equipment Second Lien Senior Secured Term Loan (LIBOR + 7.0%, 7.8% Cash, Acquired 04/21, Due 04/29) 2,088,364 2,047,263 2,046,597

2,088,364 2,047,263 2,046,597

RPX Corporation (2.2%)* (7) (8) (11)

7 unchanged sentences

Non-durable Consumer Goods First Lien Senior Secured Term Loan (LIBOR + 6.0%, 7.0% Cash, Acquired 12/20, Due 12/26) (9)

15,574,673 15,117,074 15,332,211

Preferred Stock (372.1 shares, Acquired 12/20) 372,088 462,609

24 unchanged sentences

Health Care Services First Lien Senior Secured Term Loan (LIBOR + 5.17%, 5.4% Cash, Acquired 10/18, Due 10/24) 5,846,563 5,813,007 5,846,563

5,861,902 5,825,907 5,768,111

First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 12/20, Due 10/24) 9,264,438 9,018,510 9,264,438

15,111,001 14,831,517 15,111,001

15,149,617 14,850,128 14,801,709

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

SN BUYER, LLC (2.6%)* (7) (8) (11)

4 unchanged sentences

9,279,066 9,097,433 9,279,066

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

SPT Acquico Limited (0.1%)* (3) (7) (8) (11)

33 unchanged sentences

Power Distribution Solutions First Lien Senior Secured Term Loan (LIBOR + 4.75%, 5.8% Cash, Acquired 09/18, Due 09/23) (11)

Class A LLC Units (384.5 units, Acquired 09/18) 395,995 369,443

16,185,659 16,021,574 16,007,616

Tuf-Tug, Inc.

Class A LLC Units (384.5 units, Acquired 09/18) 395,995 332,452

16,185,659 16,417,569 16,340,068

Safety Equipment Manufacturer Common Stock (24.6 shares, Acquired 12/20) 385,047 —

Turf Products, LLC (1.2%)* (7) (23)

17 unchanged sentences

16,263,423 16,082,298 15,466,516

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Utac Ceram (0.7%)* (3) (7) (8)

8 unchanged sentences

4,783,146 4,674,093 4,692,266

W2O Holdings, Inc.

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Vital Buyer, LLC (2.0%)* (7) (8)

Technology First Lien Senior Secured Term Loan (LIBOR + 6.0%, 6.8% Cash, Acquired 06/21, Due 06/28) (11)

$ 14,880,952 $ 14,586,082 $ 14,583,333

Healthcare Technology Undrawn Delayed Draw Term Loan (LIBOR + 5.0%, 5.0% Cash, Acquired 10/20, Due 06/25) — (111,213) —

Partnership Units (16,442.9 units, Acquired 06/21) 164,429 164,429

14,880,952 14,750,511 14,747,762

Winebow Group, LLC, (The) (2.3%)* (8) (9)

Consumer Goods First Lien Senior Secured Term Loan (LIBOR + 3.75%, 4.8% Cash, Acquired 11/19, Due 07/21) 10,599,445 10,355,135 10,472,252

Second Lien Senior Secured Term Loan (LIBOR + 7.5%, 8.5% Cash, Acquired 10/19, Due 01/22)

W2O Holdings, Inc.

(0.0%)* (7) (8)

Healthcare Technology Undrawn Delayed Draw Term Loan (LIBOR + 5.0%, 6.0% Cash, Acquired 10/20, Due 06/25) — (106,398) —

— (106,398) —

17 unchanged sentences

Senior Subordinated Loan (3.1% PIK, Acquired 12/20, Due 05/22) 8,884,067 8,884,068 8,884,067

Senior Unsecured Term Loan (9.0% PIK, Acquired 04/21, Due 04/25) 8,301,304 8,347,853 8,301,304

Common Stock (1,099.5 shares, Acquired 12/20) 21,264,000 25,352,179

3 unchanged sentences

30,000,000 32,200,110

Waccamaw River LLC (0.8%)* (3)

Investment Funds & Vehicles 25% Member Interest, Acquired 02/21 5,525,000 5,588,593

5,525,000 5,588,593

Subtotal Affiliate Investments (17.0%) 22,636,576 114,383,398 126,432,371

8 unchanged sentences

9,124,262 7,711,975

Waccamaw River LLC (0.6%)* (3)

Investment Funds & Vehicles 50% Member Interest, Acquired 02/21 4,500,000 4,474,228

4,500,000 4,474,228

Subtotal Control Investments (3.1%) 7,149,166 25,826,428 23,279,660

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2021

Portfolio Company (6)

Industry Type of Investment (1) (2)

Amount Cost Fair

Short-Term Investments:

BlackRock, Inc.

(4.8%)* Money Market Fund BlackRock Liquidity Temporary Fund (0.05% yield) $ 35,001,688 $ 34,998,190

35,001,688 34,998,190

Short-Term Investment:

JPMorgan Chase & Co.

1 unchanged sentence

10,574,196 10,574,196

Subtotal Short-Term Investments (10.1%) 73,569,174 73,565,676

Total Investments, March 31, 2021 (220.1%)* $ 1,451,926,120 $ 1,588,550,588 $ 1,602,123,737

Subtotal Short-Term Investment (1.4%) 10,574,196 10,574,196

Total Investments, June 30, 2021 (211.7%)*

$ 1,463,631,295 $ 1,548,777,050 $ 1,575,109,373

Barings BDC, Inc.

Unaudited Consolidated Schedule of Investments — (Continued)

June 30, 2021

Derivative Instruments

2 unchanged sentences

Credit Support Agreement Barings LLC 01/01/31 $ 23,000,000 $ 14,300,006 $ 700,006

Total Credit Support Agreement, March 31, 2021 $ (1,600,000)

(a) The Credit Support Agreement covers all of the investments acquired by the Company from MVC Capital, Inc.

Total Credit Support Agreement, June 30, 2021

(a) The Credit Support Agreement covers all of the investments acquired by Barings BDC, Inc.

(“the Company”) from MVC Capital, Inc.

("MVC") in connection with the MVC Acquisition (as defined in “Note 1 – Organization, Business and Basis of Presentation”) and any investments received by the Company in connection with the restructuring, amendment, extension or other modification (including the issuance of new securities) of any of the investments acquired by the Company from MVC in connection with the MVC Acquisition (collectively, the “Reference Portfolio”).

8 unchanged sentences

Foreign currency forward contract (AUD) $843,201 A$1,114,133 10/06/21 6,439

Foreign currency forward contract (EUR) €5,800,000 $6,809,925 04/01/21 6,812

Foreign currency forward contract (CAD) C$6,000,000 $4,863,920 07/07/21 (18,596)

Foreign currency forward contract (CAD) $4,974,150 C$6,000,000 07/07/21 128,825

Foreign currency forward contract (CAD) $4,863,825 C$6,000,000 10/06/21 18,572

Foreign currency forward contract (EUR) €20,518,045 $24,952,136 07/07/21 (617,138)

7 unchanged sentences

Foreign currency forward contract (SEK) $180,113 1,530,825kr 10/06/21 955

Total Foreign Currency Forward Contracts, March 31, 2021 $ 232,705

Total Foreign Currency Forward Contracts, June 30, 2021

_______________________________________________________________

5 unchanged sentences

Index-based floating interest rates are generally subject to a contractual minimum interest rate.

A majority of the variable rate loans in the Company's investment portfolio bear interest at a rate that may be determined by reference to LIBOR, EURIBOR, GBP LIBOR, BBSY, STIBOR or an alternate Base Rate (commonly based on the Federal Funds Rate or the Prime Rate), which typically reset semi-annually, quarterly, or monthly at the borrower's option.

A majority of the variable rate loans in the Company's investment portfolio bear interest at a rate that may be determined by reference to LIBOR, EURIBOR, GBP LIBOR, BBSY, STIBOR, CDOR, SONIA or an alternate Base Rate (commonly based on the Federal Funds Rate or the Prime Rate), which typically reset semi-annually, quarterly, or monthly at the borrower's option.

The borrower may also elect to have multiple interest reset periods for each loan.

(2) All of the Company’s portfolio company investments (including joint venture and short-term investments), which as of March 31, 2021 represented 220.1% of the Company’s net assets, are subject to legal restrictions on sales.

(2) All of the Company’s portfolio company investments (including joint venture and short-term investments), which as of June 30, 2021 represented 211.7% of the Company’s net assets, are subject to legal restrictions on sales.

The acquisition date represents the date of the Company's initial investment in the relevant portfolio company.

(3) Investment is not a qualifying investment as defined under Section 55(a) of the 1940 Act.

Non-qualifying assets repres en t 25.5% o f tot al investments at fair value as of March 31, 2021.

Non-qualifying assets repres en t 25.6% of tot al investments at fair value as of June 30, 2021.

Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets.

2 unchanged sentences

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2021

June 30, 2021

(4) As defined in the 1940 Act, the Company is deemed to be an “affiliated person” of the portfolio company as the Company owns between 5% or more, up to 25% (inclusive), of the portfolio company's voting securities (“non-controlled affiliate”).

Transactions related to investments in non-controlled "Affiliate Investments" for the three months ended March 31, 2021 were as follows:

Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) Amount of Interest or Dividends Credited to Income(b) December 31, 2020

Transactions related to investments in non-controlled "Affiliate Investments" for the six months ended June 30, 2021 were as follows:

December 31, 2020

Value Gross Additions

(b) Gross Reductions (c) Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) June 30, 2021 Value

Amount of Interest or Dividends Credited to Income(d)

Portfolio Company Type of Investment(a)

5 unchanged sentences

JSC Tekers Holdings (e)

Common Stock (3,201 shares) — 192,909 — 4,753,000 192,909 3 4,945,906

Preferred Stock (9,159,085 shares) 4,753,000 — (3) — 925,636 5,678,633 —

Common Stock (3,201 shares) — — — — — — —

4,753,000 — (3) — 925,636 5,678,633 —

2 unchanged sentences

Senior Subordinated Loan (3.1% PIK) 8,746,454 137,613 — — — 8,884,067 137,939

Senior Unsecured Term Loan (9.0% PIK) — 8,347,853 — — (46,549) 8,301,304 274,553

Common Equity Interest 21,329,370 — — — 4,022,809 25,352,179 —

2 unchanged sentences

10,011,840 20,000,000 — — 2,188,270 32,200,110 361,874

Waccamaw River LLC 25% Member Interest — 5,499,228 — — 89,365 5,588,593 —

— 5,499,228 — — 89,365 5,588,593 —

Total Affiliate Investments $ 78,598,633 $ 44,248,391 $ (5,870,013) $ (76,631) $ 9,531,991 $ 126,432,371 $ 982,903

(a) Equity and equity-linked investments are non-income producing, unless otherwise noted.

(b) Represents the total amount of interest, fees or dividends credited to income for the portion of the year an investment was included in the Affiliate category.

(c) Gross additions include increases in the cost basis of investments resulting from new investments and follow-on investments.

Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation.

(d) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales.

Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation.

(b) Gross additions include increases in the cost basis of investments resulting from new investments and follow-on investments.

(c) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales.

(d) Represents the total amount of interest, fees or dividends credited to income for the portion of the year an investment was included in the Affiliate category.

(e) The fair value of the investment was determined using significant unobservable inputs.

1 unchanged sentence

Unaudited Consolidated Schedule of Investments — (Continued)

March 31, 2021

June 30, 2021

(5) As defined in the 1940 Act, the Company is deemed to be both an “affiliated person” and “control” the portfolio company because it owns more than 25% of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company (including through a management agreement).

Transactions as of and during the three months ended March 31, 2021 in which the portfolio company is deemed to be a "Control Investment" of the Company are as follows:

Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) Amount of Interest or Dividends Credited to Income(b) December 31, 2020

Transactions as of and during the six months ended June 30, 2021 in which the portfolio company is deemed to be a "Control Investment" of the Company were as follows:

December 31, 2020

Value Gross Additions

(b) Gross Reductions (c) Amount of Realized Gain (Loss) Amount of Unrealized Gain (Loss) June 30, 2021

Amount of Interest or Dividends Credited to Income(d)

Portfolio Company Type of Investment(a)

MVC Automotive Group GmbH (e)

Common Equity Interest $ — $ (2,660,324) $ — $ 9,582,368 $ — $ 2,660,324 $ 6,922,044

MVC Automotive Group GmbH Common Equity Interest $ 9,582,368 $ — $ — $ — $ (1,163,849) $ 8,418,519 $ —

Bridge Loan (6.0% PIK 12/31/2021) 7,149,166 — — — — 7,149,166 215,667

16,731,534 — — — (1,163,849) 15,567,685 215,667

MVC Private Equity Fund LP (e)

Limited Partnership Interest — (1,252,534) — 8,899,284 — 1,252,534 7,646,750

MVC Private Equity Fund LP Limited Partnership Interest 8,899,284 — — — (1,378,383) 7,520,901 —

General Partnership Interest 224,978 1 — — (33,905) 191,074 315,416

1 unchanged sentence

Waccamaw River LLC 50% Member Interest — 4,500,000 (4,474,229) — (25,771) — —

— (25,772) — — 4,500,000 25,772 4,474,228

Total Control Investments $ 25,855,796 $ 4,500,001 $ (4,474,229) $ — $ (2,601,908) $ 23,279,660 $ 531,083

(a) Equity and equity-linked investments are non-income producing, unless otherwise noted.

(b) Represents the total amount of interest, fees or dividends credited to income for the portion of the year an investment was included in the Control category.

(c) Gross additions include increases in the cost basis of investments resulting from new investments and follow-on investments.

Gross additions also include net increases in unrealized appreciation or net decreases in unrealized depreciation.

(d) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales.

Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation.

(e) The fair value of the investment was determined using significant unobservable inputs.

(b) Gross additions include increases in the cost basis of investments resulting from new investments and follow-on investments.

(c) Gross reductions include decreases in the total cost basis of investments resulting from principal repayments or sales.

(d) Represents the total amount of interest, fees or dividends credited to income for the portion of the year an investment was included in the Control category.

(6) Some or all of the investment is or will be encumbered as security for the Company's $800.0 million senior secured credit facility with ING Capital LLC initially entered into in February 2019 (as amended, restated and otherwise modified from time to time, the "February 2019 Credit Facility").

1 unchanged sentence

(8) Debt investment includes interest rate floor feature.

(9) The interest rate on these loans is subject to 1 Month LIBOR, which as of March 31, 2021 was 0.11113%.

(10) The interest rate on these loans is subject to 2 Month LIBOR, which as of March 31, 2021 was 0.13363%.

(11) The interest rate on these loans is subject to 3 Month LIBOR, which as of March 31, 2021 was 0.19425%.

(12) The interest rate on these loans is subject to 6 Month LIBOR, which as of March 31, 2021 was 0.20525%.

(13) The interest rate on these loans is subject to 3 Month GBP LIBOR, which as of March 31, 2021 was 0.08788%.

(14) The interest rate on these loans is subject to 6 Month GBP LIBOR, which as of March 31, 2021 was 0.11275%.

(15) The interest rate on these loans is subject to 3 Month EURIBOR, which as of March 31, 2021 was -0.53800%.

(16) The interest rate on these loans is subject to 6 Month EURIBOR, which as of March 31, 2021 was -0.50900%.

(17) The interest rate on these loans is subject to 3 Month STIBOR, which as of March 31, 2021 was -0.01100%.

(18) The interest rate on these loans is subject to 1 Month BBSY, which as of March 31, 2021 was 0.01470%.

(19) The interest rate on these loans is subject to 12 Month LIBOR, which as of March 31, 2021 was 0.28313%.

(9) The interest rate on these loans is subject to 1 Month LIBOR, which as of June 30, 2021 was 0.10050%.

(10) The interest rate on these loans is subject to 2 Month LIBOR, which as of June 30, 2021 was 0.12550%.

(11) The interest rate on these loans is subject to 3 Month LIBOR, which as of June 30, 2021 was 0.14575%.

(12) The interest rate on these loans is subject to 6 Month LIBOR, which as of June 30, 2021 was 0.15950%.

(13) The interest rate on these loans is subject to 12 Month LIBOR, which as of June 30, 2021 was 0.24625%.

(14) The interest rate on these loans is subject to 3 Month GBP LIBOR, which as of June 30, 2021 was 0.07788%.

(15) The interest rate on these loans is subject to 6 Month GBP LIBOR, which as of June 30, 2021 was 0.10800%.

(16) The interest rate on these loans is subject to 3 Month EURIBOR, which as of June 30, 2021 was -0.54200%.

(17) The interest rate on these loans is subject to 6 Month EURIBOR, which as of June 30, 2021 was -0.51500%.

(18) The interest rate on these loans is subject to 3 Month STIBOR, which as of June 30, 2021 was -0.05600%.

(19) The interest rate on these loans is subject to 1 Month BBSY, which as of June 30, 2021 was 0.01000%.

(20) The interest rate on these loans is subject to 3 Month BBSY, which as of June 30, 2021 was 0.03030%.

(21) The interest rate on these loans is subject to 3 Month CDOR, which as of June 30, 2021 was 0.43875%.

(22) The interest rate on these loans is subject to 6 Month SONIA, which as of June 30, 2021 was 0.05670%.

(23) Investment was purchased as part of the MVC Acquisition and is part of the Reference Portfolio for purposes of the Credit Support Agreement.

(24) In 2017, MVC received $5.7 million of 9.5% second lien callable notes due in 2025, in lieu of an escrow to satisfy any indemnification claims associated with MVC’s sale of its equity investment in U.S.

Gas & Electric.

Gas & Electric ("U.S.

Effective January 1, 2018, the cost basis of the U.S.

133 unchanged sentences

Carlson Travel, Inc (1.0%)* Business Travel Management First Lien Senior Secured Note (6.8% Cash, Acquired 09/20, Due 12/25) 3,000,000 2,362,500 2,471,250

Super Senior Senior Secured Term Loan (10.5% Cash, Acquired 12/20, Due 3/25) 4,239,000 4,149,608 4,376,768

Super Senior Secured Term Loan (10.5% Cash, Acquired 12/20, Due 3/25) 4,239,000 4,149,608 4,376,768

Common Stock (1,962 units, Acquired 11/20) (7)

606 unchanged sentences

(23) Investment was purchased as part of the MVC Acquisition and is part of the Reference Portfolio for purposes of the Credit Support Agreement.

(24) In 2017, MVC Capital, Inc.

received $5.7 million of 9.5% second lien callable notes due in 2025, in lieu of an escrow to satisfy any indemnification claims associated with MVC Capital, Inc's sale of its equity investment in U.S.

(24) In 2017, MVC received $5.7 million of 9.5% second lien callable notes due in 2025, in lieu of an escrow to satisfy any indemnification claims associated with MVC's sale of its equity investment in U.S.

Gas & Electric.

6 unchanged sentences

ORGANIZATION, BUSINESS AND BASIS OF PRESENTATION

Barings BDC, Inc.

The Company and its wholly-owned subsidiaries are specialty finance companies.

13 unchanged sentences

None of the portfolio investments made by the Company qualify for this exception.

Therefore, the Company's investment portfolio is carried on the Unaudited and Audited Consolidated Balance Sheets at fair value, as discussed further in Note 3, with any adjustments to fair value recognized as “Net unrealized appreciation (depreciation)” on the Unaudited Consolidated Statements of Operations.

Therefore, the Company's investment portfolio is carried on the Unaudited and Audited Consolidated Balance Sheets at fair value, as discussed further in “Note 3 – Investments”, with any adjustments to fair value recognized as “Net unrealized appreciation (depreciation)” on the Unaudited Consolidated Statements of Operations.

The accompanying unaudited consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States (“U.S.

20 unchanged sentences

Purchases under the 2020 Share Repurchase Program were made in open-market transactions and included transactions being executed by a broker selected by the Company that had been delegated the authority to repurchase shares on the Company's behalf in the open market in accordance with applicable rules under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including Rules 10b5-1 and 10b-18 thereunder, and pursuant to, and under the terms and limitations of, the 2020 Share Repurchase Program.

During the three months ended March 31, 2020, the Company repurchased a total of 661,981 shares of its common stock in the open market under the 2020 Share Repurchase Program at an average price of $7.23 per share, including broker commissions.

During the three and six months ended June 30, 2020, the Company repurchased a total of 327,069 and 989,050 shares, respectively, of its common stock in the open market under the 2020 Share Repurchase Program at an average price of $7.17 and $7.21 per share, respectively, including broker commissions.

In connection with the completion of the Company’s acquisition of MVC Capital, Inc.

(“MVC”), a Delaware corporation, on December 23, 2020 (the “MVC Acquisition”), the Company committed to make open-market purchases of shares of its common stock in an aggregate amount of up to $15.0 million at then-current market prices at any time shares trade below 90% of the Company’s then most recently disclosed NAV per share.

Any repurchases pursuant to the authorized program will occur during the 12-month period commencing upon the filing of this quarterly report on Form 10-Q for the quarter ended March 31, 2021 and will be made in accordance with applicable legal, contractual and regulatory requirements.

Any repurchases pursuant to the authorized program will occur during the 12-month period commencing upon the filing of the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2021, which occurred on May 6, 2021, and will be made in accordance with applicable legal, contractual and regulatory requirements.

During the three and six months ended June 30, 2021, the Company did not repurchase any shares under the authorized program.

AGREEMENTS AND RELATED PARTY TRANSACTIONS

11 unchanged sentences

The Amended and Restated Advisory Agreement provides that, absent fraud, willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of the reckless disregard of its duties and obligations, the Adviser, and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with the Adviser (collectively, the "IA Indemnified Parties"), are entitled to indemnification from the Company for any damages, liabilities, costs, demands, charges, claims and expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) incurred by the IA Indemnified Parties in or by reason of any pending, threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the Company or its security holders) arising out of any actions or omissions or otherwise based upon the performance of any of the Adviser’s duties or obligations under the Amended and Restated Advisory Agreement or otherwise as an investment adviser of the Company.

The Adviser’s services under the Amended and Restated Advisory Agreement are not exclusive, and the Adviser is generally free to furnish similar

The Adviser’s services

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

services to other entities so long as its performance under the Amended and Restated Advisory Agreement is not adversely affected.

The Adviser has entered into a personnel-sharing arrangement with its affiliate, Barings International Investment Limited (“BIIL”).

under the Amended and Restated Advisory Agreement are not exclusive, and the Adviser is generally free to furnish similar services to other entities so long as its performance under the Amended and Restated Advisory Agreement is not adversely affected.

The Adviser has entered into a personnel-sharing arrangement with its affiliate, Baring International Investment Limited (“BIIL”).

BIIL is a wholly-owned subsidiary of Baring Asset Management Limited, which in turn is an indirect, wholly-owned subsidiary of the Adviser.

13 unchanged sentences

Base Management Fees for any partial month or quarter will be appropriately pro-rated.

For the three months ended March 31, 2021, the Base Management Fee determined in accordance with the terms of the Amended and Restated Advisory Agreement was approximately $3.9 million.

For the three months ended, March 31, 2020, the Base Management Fee determined in accordance with the terms of the Original Advisory Agreement was approximately $3.9 million.

As of March 31, 2021, the Base Management Fee of $3.9 million for the three months ended March 31, 2021 was unpaid and included in “Base management fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

For the three and six months ended June 30, 2021, the Base Management Fee determined in accordance with the terms of the Amended and Restated Advisory Agreement was approximately $4.9 million and $8.8 million, respectively.

For the three and six months ended, June 30, 2020, the Base Management Fee determined in accordance with the terms of the Original Advisory Agreement was approximately $3.6 million and $7.5 million, respectively.

As of June 30, 2021, the Base Management Fee of $4.9 million for the three months ended June 30, 2021 was unpaid and included in “Base management fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

As of December 31, 2020, the Base Management Fee of $3.4 million for the three months ended December 31, 2020 was unpaid and included in “Base management fees payable” in the accompanying Consolidated Balance Sheet.

4 unchanged sentences

(i) For each quarter from and after August 2, 2018 through December 31, 2019 (the "Pre-2020 Period"), the Pre-2021 Income-Based Fee was calculated and payable quarterly in arrears based on the Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter for which such fees were being calculated.

In respect of the Pre-2020 Period, "Pre-Incentive Fee Net Investment Income" meant interest income, dividend income and any other income (including any other fees, such as commitment, origination, structuring, diligence, managerial assistance and consulting fees or other fees that the Company receives from portfolio companies) accrued during the relevant

In respect of the Pre-2020 Period, "Pre-Incentive Fee Net Investment Income" meant interest income, dividend income and any

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

calendar quarter, minus the Company’s operating expenses for such quarter (including the Base Management Fee, expenses payable under the Administration Agreement, any interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the Incentive Fee).

other income (including any other fees, such as commitment, origination, structuring, diligence, managerial assistance and consulting fees or other fees that the Company receives from portfolio companies) accrued during the relevant calendar quarter, minus the Company’s operating expenses for such quarter (including the Base Management Fee, expenses payable under the Administration Agreement, any interest expense and any dividends paid on any issued and outstanding preferred stock, but excluding the Incentive Fee).

Pre-Incentive Fee Net Investment Income included, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income not yet received in cash.

12 unchanged sentences

The Post-2019 Catch-Up Amount was intended to provide the Adviser with an incentive fee of 20% on all of the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (ii) above) when the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (ii) above) reached 2% per quarter (8% annualized);

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Incentive Fee Net Investment Income (as defined in paragraph (i) above) for such quarter, if any, that exceeded the Pre-2020 Catch-Up Amount;

(3) (a) With respect to the Pre-2020 Period, 20% of the amount of the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (i) above) for any calendar quarter with respect to that portion of the Pre-Incentive Fee Net Investment Income (as defined in paragraph (i) above) for such quarter, if any, that exceeded the Pre-2020 Catch-Up Amount;

(b) With respect to the Post-2019 Period, 20% of the amount of the Company’s Pre-Incentive Fee Net Investment Income (as defined in paragraph (ii) above) for any calendar quarter with respect to that portion of the Pre-Incentive Fee Net Investment Income (as defined in paragraph (ii) above), if any, that exceeded the Post-2019 Catch-Up Amount.

14 unchanged sentences

The Hurdle Amount will be determined on a quarterly basis, and will be calculated by multiplying 2.0% (8% annualized) by the aggregate of the Company's NAV at the beginning of each applicable calendar quarter comprising the relevant Trailing Twelve Quarters.

For this purpose, under the Amended and Restated Advisory Agreement, “Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including, without limitation, any accrued income that we have not yet received in cash and any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies) accrued during the calendar quarter, minus the Company's operating expenses accrued during the calendar quarter (including, without limitation, the Base Management Fee, administration expenses and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the Income-Based Fee and the Capital Gains Fee).

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

avoidance of doubt, Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation:

issued and outstanding preferred stock, but excluding the Income-Based Fee and the Capital Gains Fee).

For the avoidance of doubt, Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation:

The calculation of the Income-Based Fee for each quarter is as follows:

21 unchanged sentences

Under the Amended and Restated Advisory Agreement, the “ accreted or amortized cost basis of an investment” shall mean the accreted or amortized cost basis of such investment as reflected in the Company’s financial statements.

For the three months ended March 31, 2021, the Income-Based Fee determined in accordance with the terms of the Amended and Restated Advisory Agreement was $2.7 million.

As of March 31, 2021, the Income-Based Fee of $2.7 million was unpaid and included in “Incentive management fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

The Company did not pay any Pre-2021 Income-Based Fee for the three months ended March 31, 2020.

The Company did not pay any capital gains fees for either of the three months ended March 31, 2021 or 2020.

For the three and six months ended June 30, 2021, the Income-Based Fee determined in accordance with the terms of the Amended and Restated Advisory Agreement was $3.5 million and $6.2 million, respectively.

As of June 30, 2021, the Income-Based Fee of $3.5 million was unpaid and included in “Incentive management fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

The Company did not pay any Pre-2021 Income-Based Fee for the three or six months ended June 30, 2020.

The Company did not incur any capital gains fees for either of the three or six months ended June 30, 2021 or 2020.

Payment of Company Expenses

13 unchanged sentences

• costs associated with (a) the monitoring and preparation of regulatory reporting, including registration statements and amendments thereto, prospectus supplements, and tax reporting, (b) the coordination and oversight of service provider activities and the direct cost of such contractual matters related thereto and (c) the preparation of all financial statements and the coordination and oversight of audits, regulatory inquiries, certifications and sub-certifications.

For the three months ended March 31, 2021 and March 31, 2020, the Company incurred and was invoiced by the Adviser for expenses of approximately $0.5 million and $0.4 million, respectively, under the terms of the Administration Agreement, which amounts are included in “General and administrative expenses” in the accompanying Unaudited Consolidated Statements of Operations.

As of March 31, 2021, the administrative expenses of $0.5 million for the three months ended March 31, 2021 were unpaid and included in “Administrative fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

For the three and six months ended June 30, 2021, the Company incurred and was invoiced by the Adviser for expenses of approximately $0.5 million and $1.0 million, respectively, under the terms of the Administration Agreement, which amounts are included in “General and administrative expenses” in the accompanying Unaudited Consolidated Statements of Operations.

For the three and six months ended June 30, 2020, the Company incurred and was invoiced by the Adviser for expenses of approximately $0.2 million and $0.6 million, respectively, under the terms of the Administration Agreement, which amounts are included in “General and administrative expenses” in the accompanying Unaudited Consolidated Statements of Operations.

As of June 30, 2021, the administrative expenses of $0.5 million for the three months ended June 30, 2021 were unpaid and included in “Administrative fees payable” in the accompanying Unaudited Consolidated Balance Sheet.

As of December 31, 2020, the administrative expenses of $0.7 million incurred for the three months ended December 31, 2020 were unpaid and included in “Administrative fees payable” in the accompanying Consolidated Balance Sheet.

13 unchanged sentences

In the event of a non-voluntary termination of the advisory agreement or its expiration (due to non-renewal by the Board), the Adviser will have no obligations under the Credit Support Agreement.

The Credit Support Agreement is intended to give stockholders of the combined company following the MVC Acquisition downside protection from net cumulative realized and unrealized losses on the acquired MVC portfolio and insulate the combined company’s stockholders from potential value volatility and losses in MVC’s portfolio following the closing of the Company’s merger with MVC.

There is no fee or other payment by the Company to the Adviser or any of its affiliates in connection with the Credit Support Agreement.

Any cash payment from the Adviser to the Company under the Credit Support

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Agreement will be excluded from the Company’s incentive fee calculations under the Amended and Restated Advisory Agreement.

combined company’s stockholders from potential value volatility and losses in MVC’s portfolio following the closing of the MVC Acquisition.

There is no fee or other payment by the Company to the Adviser or any of its affiliates in connection with the Credit Support Agreement.

Any cash payment from the Adviser to the Company under the Credit Support Agreement will be excluded from the Company’s incentive fee calculations under the Amended and Restated Advisory Agreement.

When the Company and the Adviser entered into the Credit Support Agreement, it was accounted for as a deemed contribution from the Adviser and is included in "Additional paid-in capital" in the accompanying Unaudited Consolidated Balance Sheet and Consolidated Balance Sheet.

In addition, the Credit Support Agreement will be accounted for as a derivative in accordance with ASC 815, Derivatives and Hedging , and is included in "Credit support agreement" in the accompanying Unaudited Consolidated Balance Sheet and Consolidated Balance Sheet.

In addition, the Credit Support Agreement is accounted for as a derivative in accordance with ASC 815, Derivatives and Hedging , and is included in "Credit support agreement" in the accompanying Unaudited Consolidated Balance Sheet and Consolidated Balance Sheet.

Portfolio Composition

3 unchanged sentences

The cost basis of the Company's debt investments includes any unamortized purchased premium or discount, unamortized loan origination fees and PIK interest, if any.

Summaries of the composition of the Company’s investment portfolio at cost and fair value, and as a percentage of total investments, are shown in the following tables:

Summaries of the composition of the Company’s investment portfolio at cost and fair value, and as a percentage of total investments and net assets, are shown in the following tables:

Cost Percentage of

1 unchanged sentence

Total Portfolio Percentage of

March 31, 2021:

June 30, 2021:

Senior debt and 1 st lien notes

19 unchanged sentences

$ 1,486,055,145 100 % $ 1,495,795,937 100 % 208 %

During the three months ended March 31, 2021, the Company made 18 new investments totaling $172.2 million, made investments in existing portfolio companies totaling $73.2 million, made a new joint venture equity investment totaling $4.5 million and additional investments in joint venture equity portfolio companies totaling $25.0 million.

During the three months ended March 31, 2020, the Company made 30 new investments totaling $111.2 million and made investments in existing portfolio companies totaling $20.9 million.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

The industry composition of investments at fair value at March 31, 2021 and December 31, 2020, excluding short-term investments, was as follows:

March 31, 2021 December 31, 2020

During the three months ended June 30, 2021, the Company made 22 new investments totaling $204.2 million, made investments in existing portfolio companies totaling $54.2 million, and made net additional investments in existing joint venture equity portfolio companies totaling $6.0 million.

During the six months ended June 30, 2021, the Company made 40 new investments totaling $390.9 million, made investments in existing portfolio companies totaling $112.9 million, made a net new joint venture equity investment totaling $5.5 million and additional investments in joint venture equity portfolio companies totaling $30.0 million.

During the three months ended June 30, 2020, the Company made three new investments totaling $13.9 million, made investments in existing portfolio companies totaling $14.1 million, made a new joint venture equity investment totaling $1.5 million and additional investments in joint venture equity portfolio companies totaling $5.0 million.

During the six months ended June 30, 2020, the Company made 31 new investments totaling $126.9 million, made investments in existing portfolio companies totaling $33.2 million, made a new joint venture equity investment totaling $1.5 million and additional investments in joint venture equity portfolio companies totaling $5.0 million.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

The industry composition of investments at fair value at June 30, 2021 and December 31, 2020, excluding short-term investments, was as follows:

June 30, 2021 December 31, 2020

Aerospace and Defense $ 95,521,492 6.1 % $ 82,501,170 5.8 %

36 unchanged sentences

Equity contributions will be called from each member on a pro-rata basis, based on their equity commitments.

As of March 31, 2021, Jocassee had $272.1 million in senior secured private middle-market debt investments, $0.7 million in second lien and subordinated private middle-market debt investments, $384.5 million in U.S.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

As of June 30, 2021, Jocassee had $407.9 million in senior secured private middle-market debt investments, $9.5 million in second lien and subordinated private middle-market debt investments, $376.6 million in U.S.

syndicated senior secured loans, $6.5 million in U.S.

2 unchanged sentences

syndicated senior secured loans, $161.5 million in European syndicated senior secured loans, $25.6 million in structured product investments, $5.8 million in an equity investment, $90.1 million in a joint venture investment and $23.1 million in short-term investments.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Jocassee’s subscription facility with Bank of America N.A., which is non-recourse to the Company, had approximately $89.5 million and $204.9 million outstanding as of June 30, 2021 and December 31, 2020, respectively.

Jocassee’s credit facility with Citibank, N.A., which is non-recourse to the Company, had approximately $204.9 million and $113.1 million outstanding as of June 30, 2021 and December 31, 2020, respectively.

Jocassee’s term debt securitization, which is non-recourse to the Company, had approximately $323.0 million and $302.3 million outstanding as of June 30, 2021 and December 31, 2020, respectively.

The Company may sell portions of its investments via assignment to Jocassee.

Since inception, as of March 31, 2021 and December 31, 2020, the Company had sold $256.9 million and $162.2 million, respectively, of its investments to Jocassee.

As of each of March 31, 2021 and December 31, 2020, the Company had $44.2 million in unsettled receivables due from Jocassee that were included in "Receivable from unsettled transactions" in the accompanying Unaudited and Audited Consolidated Balance Sheets.

Since inception, as of June 30, 2021 and December 31, 2020, the Company had sold $412.6 million and $162.2 million, respectively, of its investments to Jocassee.

As of June 30, 2021 and December 31, 2020, the Company had $153.0 million and $44.2 million, respectively in unsettled receivables due from Jocassee that were included in "Receivable from unsettled transactions" in the accompanying Unaudited and Audited Consolidated Balance Sheets.

The sale of the investments met the criteria set forth in ASC 860, Transfers and Servicing for treatment as a sale and satisfies the following conditions:

6 unchanged sentences

In addition, the Company does not control Jocassee due to the allocation of voting rights among Jocassee members.

As of March 31, 2021 and December 31, 2020, Jocassee had the following commitments, contributions and unfunded commitments from its members:

As of March 31, 2021

Member Total Commitments Contributed Capital Return of Capital (not recallable) Unfunded Commitments

Barings BDC, Inc.

$ 50,000,000 $ 25,000,000 $ — $ 25,000,000

South Carolina Retirement Systems Group Trust 500,000,000 250,000,000 — 250,000,000

Total $ 550,000,000 $ 275,000,000 $ — $ 275,000,000

As of June 30, 2021 and December 31, 2020, Jocassee had the following contributed capital and unfunded commitments from its members:

June 30, 2021

As of December 31, 2020

Member Total Commitments Contributed Capital Return of Capital (not recallable) Unfunded Commitments

Barings BDC, Inc.

Total contributed capital by Barings BDC, Inc.

$ 30,000,000 $ 20,000,000

South Carolina Retirement Systems Group Trust 500,000,000 200,000,000 — 300,000,000

Total $ 550,000,000 $ 220,000,000 $ — $ 330,000,000

Total contributed capital by all members $ 330,000,000 $ 220,000,000

Total unfunded commitments by Barings BDC, Inc.

$ 20,000,000 $ 30,000,000

Total unfunded commitments by all members $ 220,000,000 $ 330,000,000

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Thompson Rivers LLC

On April 28, 2020, Thompson Rivers LLC (“Thompson Rivers”) was formed as a Delaware limited liability company.

On May 13, 2020, the Company entered into a limited liability company agreement with Jocassee.

The Company and Jocassee committed to initially provide $10.0 million and $90.0 million, respectively, of equity capital to Thompson Rivers.

Equity contributions (and equity ownership) are on a pro-rata basis, based on their equity commitments (10% for the Company and 90% for Jocassee).

On January 29, 2021, the Company and Jocassee entered into a Second Amended and Restated Limited Liability Company Agreement (“Amended LLC Agreement”).

The Amended LLC Agreement increased the Company's commitment to $30.0 million.

As of March 31, 2021, Thompson Rivers had $938.8 million in Ginnie Mae early buyout loans and $62.1 million in cash.

On May 13, 2020, the Company entered into a limited liability company agreement governing Thompson Rivers.

Under Thompson Rivers’ current operating agreement, as amended to date, the Company has a capital commitment of $30.0 million of equity capital to Thompson Rivers, all of which has been funded as of June 30, 2021.

As of June 30, 2021, aggregate commitments to Thompson Rivers by the Company and the other members under the current operating agreement total $325.0 million, all of which has been funded.

On June 30, 2021, Thompson Rivers declared a $3.5 million dividend, of which $0.4 million was recognized as dividend income in the Company’s Unaudited Consolidated Statement of Operations.

As of June 30, 2021, Thompson Rivers had $2.5 billion in Ginnie Mae early buyout loans and $131.7 million in cash.

As of December 31, 2020, Thompson Rivers had $715.2 million in Ginnie Mae early buyout loans.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Thompson Rivers’ repurchase agreement line with JPMorgan Chase Bank, which is non-recourse to the Company, had approximately $839.6 million and $670.1 million outstanding as of June 30, 2021 and December 31, 2020, respectively.

Thompson Rivers’ repurchase agreement line with Bank of America N.A., which is non-recourse to the Company, had approximately $1,472.2 million outstanding as of June 30, 2021.

The Company has determined that Thompson Rivers is an investment company under ASC, Topic 946, Financial Services - Investment Companies , however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company.

1 unchanged sentence

In addition, the Company does not control Thompson Rivers due to the allocation of voting rights among Thompson Rivers members.

As of March 31, 2021 and December 31, 2020, Thompson Rivers had the following commitments, contributions and unfunded commitments from its members:

As of March 31, 2021

Member Total Commitments Contributed Capital Return of Capital (not recallable) Unfunded Commitments

Barings BDC, Inc.

$ 30,000,000 $ 30,000,000 $ — $ —

Jocassee Partners LLC 90,000,000 90,000,000 — —

Total $ 120,000,000 $ 120,000,000 $ — $ —

As of June 30, 2021 and December 31, 2020, Thompson Rivers had the following contributed capital and unfunded commitments from its members:

June 30, 2021

As of December 31, 2020

Member Total Commitments Contributed Capital Return of Capital (not recallable) Unfunded Commitments

Barings BDC, Inc.

Total contributed capital by Barings BDC, Inc.

$ 30,000,000 $ 10,000,000

Jocassee Partners LLC 90,000,000 90,000,000 — —

Total $ 100,000,000 $ 100,000,000 $ — $ —

Total contributed capital by all members $ 325,000,000 (1) $ 100,000,000 (2)

Total unfunded commitments by Barings BDC, Inc.

Total unfunded commitments by all members $ — $ —

(1) Includes $120.0 million of total contributed capital by related parties.

(2) Includes $90.0 million of total contributed capital by related parties.

Waccamaw River LLC

On January 4, 2021, Waccamaw River LLC (“Waccamaw River”) was formed as a Delaware limited liability company.

On February 8, 2021, the Company entered into a limited liability company agreement (“Waccamaw LLC Agreement”) with Jocassee.

The Company and Jocassee have committed to initially each provide $25.0 million, of equity capital to Waccamaw River.

Equity contributions (and equity ownership) are on a pro-rata basis, based on their equity commitments (50% for the Company and 50% for Jocassee).

As of March 31, 2021, Waccamaw River had $7.8 million in unsecured consumer loans and $0.6 million in cash.

On February 8, 2021, the Company entered into a limited liability company agreement governing Waccamaw River.

Under Waccamaw River’s current operating agreement, as amended to date, the Company has a capital commitment of $25.0 million of equity capital to Waccamaw River, of which approximately $9.1 million (including approximately $3.6 million of recallable return of capital) has been funded as of June 30, 2021.

As of June 30, 2021, aggregate commitments to Waccamaw River by the Company and the other members under the current operating agreement totals $100.0 million, of which $29.2 million (including $7.1 million of recallable return of capital) has been funded.

As of June 30, 2021, Waccamaw River had $19.9 million in unsecured consumer loans and $5.0 million in cash.

The Company has determined that Waccamaw River is an investment company under ASC, Topic 946, Financial Services - Investment Companies , however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a substantially wholly owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company.

1 unchanged sentence

In addition, the Company does not control Waccamaw River due to the allocation of voting rights among Waccamaw River members.

As of March 31, 2021, Waccamaw River had the following commitments, contributions and unfunded commitments from its members:

As of March 31, 2021

Member Total Commitments Contributed Capital Return of Capital (not recallable) Unfunded Commitments

Barings BDC, Inc.

$ 25,000,000 $ 4,500,000 $ — $ 20,500,000

Jocassee Partners LLC 25,000,000 4,500,000 — 20,500,000

Total $ 50,000,000 $ 9,000,000 $ — $ 41,000,000

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

As of June 30, 2021, Waccamaw River had the following contributed capital and unfunded commitments from its members:

June 30, 2021

Total contributed capital by Barings BDC, Inc.

Total contributed capital by all members $ 29,200,000 (1)

Total return of capital (recallable) by Barings BDC, Inc.

$ (3,550,000)

Total return of capital (recallable) by all members $ (7,100,000) (2)

Total unfunded commitments by Barings BDC, Inc.

Total unfunded commitments by all members $ 77,900,000 (3)

(1) Includes $14.6 million of total contributed capital by related parties.

(2) Includes ($3.6) million of total return of capital (recallable) by related parties.

(3) Includes $39.0 million of unfunded commitments by related parties.

Valuation of Investments

17 unchanged sentences

The recorded fair values of the Company’s Level 3 investments may differ significantly from fair values that would have been used had an active market for the securities existed.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the valuations currently assigned.

In addition, changes in the market

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the valuations currently assigned.

Investment Valuation Process

6 unchanged sentences

The Adviser believes that the prices received from the pricing vendors are representative of prices that would be received to sell the assets at the measurement date (i.e., exit prices).

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

The Company's money market fund investments are generally valued using Level 1 inputs and its equity investments listed on an exchange or on the NASDAQ National Market System are valued using Level 1 inputs, using the last quoted sale price of that day.

17 unchanged sentences

The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

An independent pricing service provider is the preferred source of pricing a loan, however, to the extent the independent pricing service provider price is unavailable or not relevant and reliable, the Company will utilize alternative approaches such as broker quotes or manual prices.

The Company attempts to maximize the use of observable inputs and minimize the use of unobservable inputs.

The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the security.

Valuation of Investment in Jocassee

The Company estimates the fair value of its investment in Jocassee using the NAV of Jocassee and its ownership percentage.

The NAV of Jocassee is determined in accordance with the specialized accounting guidance for investment companies.

Valuation of Investment in Thompson Rivers

The Company estimates the fair value of its investment in Thompson Rivers using the NAV of Thompson Rivers and its ownership percentage.

The NAV of Thompson Rivers is determined in accordance with the specialized accounting guidance for investment companies.

An independent pricing service provider is the preferred source of pricing a loan, however, to the extent the independent pricing service provider price is unavailable or not relevant and

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Valuation of Investment in Waccamaw River

The Company estimates the fair value of its investment in Waccamaw River using the NAV of Waccamaw River and its ownership percentage.

The NAV of Waccamaw River is determined in accordance with the specialized accounting guidance for investment companies.

Valuation of Investments in MVC Private Equity Fund LP

The Company estimates the fair value of its investment in MVC Private Equity Fund LP (the "MVC PE Fund") using the NAV of the MVC PE Fund and its ownership percentage.

The NAV of the MVC PE Fund is determined in accordance with the specialized accounting guidance for investment companies.

reliable, the Company will utilize alternative approaches such as broker quotes or manual prices.

The Company attempts to maximize the use of observable inputs and minimize the use of unobservable inputs.

Valuation of Investment in Jocassee, Thompson Rivers, Waccamaw River and MVC Private Equity Fund LP

The Company estimates the fair value of its investments in Jocassee, Thompson Rivers, Waccamaw River and MVC Private Equity Fund LP using the NAV of each company and its ownership percentage.

The NAV is determined in accordance with the specialized accounting guidance for investment companies.

Level 3 Unobservable Inputs

The following tables summarize the significant unobservable inputs the Company used in the valuation of its Level 3 debt and equity securities as of March 31, 2021 and December 31, 2020.

The following tables summarize the significant unobservable inputs the Company used in the valuation of its Level 3 debt and equity securities as of June 30, 2021 and December 31, 2020.

The weighted average range of unobservable inputs is based on fair value of investments.

March 31, 2021:

June 30, 2021:

Fair Value Valuation

2 unchanged sentences

Inputs Weighted

Average Impact to Valuation from an Increase in Input

Senior debt and 1 st lien notes (1)

$ 886,013,699 Yield Analysis Market Yield 5.4% – 18.2% 7.8%

3,000,000 Liquidation Analysis Adjusted EBITDA Multiple 0.1x – 0.1x 0.10x

231,246,561 Recent Transaction Transaction Price 97.0% – 99.0% 98.0%

$ 947,636,653 Yield Analysis Market Yield 4.7% – 26.2% 7.3% Decrease

174,928,818 Recent Transaction Transaction Price 97.0% – 99.0% 97.8% Increase

Subordinated debt and 2 nd lien notes (2)

102,508,414 Yield Analysis Market Yield 8.5% – 28.0% 18.6%

21,416,118 Market Approach Adjusted EBITDA Multiple 3.5x – 7.5x 4.8x

15,733,031 Recent Transaction Transaction Price 97.2% – 98.8% 97.4%

105,606,102 Yield Analysis Market Yield 8.2% – 29.0% 19.5% Decrease

21,484,439 Market Approach Adjusted EBITDA Multiple 4.5x – 7.8x 5.6x Increase

41,619,009 Recent Transaction Transaction Price 97.5% – 100% 98.3% Increase

Equity shares (3)

31,596,895 Market Approach Adjusted EBITDA Multiple 3.5x – 16.3x 5.3x

4,945,906 Real Estate - Cost Approach Replacement Cost (CZK/m2) 1,237 to 1,892 1,892

Real Estate - Cost Approach Depreciation Factor 0.50 to 1.00 0.81

41,511,989 Market Approach Adjusted EBITDA Multiple 4.5x – 24.4x 6.7x Increase

5,678,633 Real Estate - Cost Approach Replacement Cost (CZK/m2) 1,237 to 1,892 1,892 Increase

Real Estate - Cost Approach Depreciation Factor 0.50 to 1.00 0.81 Increase

Real Estate - Income Approach Market Rent

CZK/Year CZK5,011,718 to CZK8,700,000 CZK5,011,718

Real Estate - Income Approach Cap Rate 6.0% to 7.0% 6.5%

CZK/Year CZK5,011,718 to CZK8,700,000 CZK5,011,718 Increase

Real Estate - Income Approach Cap Rate 6.0% to 7.0% 6.5% Decrease

Real Estate - Income Approach Adj.

Development Zone n/a 1.15

187,235 Recent Transaction Transaction Price $1 $1

Equity warrants 976,978 Market Approach Adjusted EBITDA Multiple 5.5x-13.4x 6.1x

Development Zone n/a 1.15 Increase

1,848,589 Recent Transaction Transaction Price $10 – $1,000 911.94 Increase

Equity warrants 1,137,116 Market Approach Adjusted EBITDA Multiple 5.8x – 12.2x 6.5x Increase

(1) Excludes investments with an aggregate fair value amounting to $6,590,556, which the Company valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.

(2) Senior debt investments with a total fair value of $12,704,389, were valued using unobservable market transactions.

(2) Excludes investments with an aggregate fair value amounting to $18,156,509, which the Company valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.

7 unchanged sentences

Inputs Weighted

Average Impact to Valuation from an Increase in Input

Senior debt and 1 st lien notes (1)

$ 650,550,710 Yield Analysis Market Yield 4.7% – 16.2% 7.4%

3,000,000 Liquidation Analysis Adjusted EBITDA Multiple 0.05x – 0.15x 0.10x

399,692,333 Recent Transaction Transaction Price 96.0% – 100.0% 97.8%

$ 650,550,710 Yield Analysis Market Yield 4.7% – 16.2% 7.4% Decrease

3,000,000 Liquidation Analysis Adjusted EBITDA Multiple 0.05x – 0.15x 0.10x Increase

399,692,333 Recent Transaction Transaction Price 96.0% – 100.0% 97.8% Increase

Subordinated debt and 2 nd lien notes (2)

109,851,771 Yield Analysis Market Yield 6.0% – 26.0% 16.7%

13,933,960 Market Approach Adjusted EBITDA Multiple 5.0x – 6.0x 5.5x

4,959,088 Recent Transaction Transaction Price 100% 100%

109,851,771 Yield Analysis Market Yield 6.0% – 26.0% 16.7% Decrease

13,933,960 Market Approach Adjusted EBITDA Multiple 5.0x – 6.0x 5.5x Increase

4,959,088 Recent Transaction Transaction Price 100% 100% Increase

Equity shares (3)

39,178,157 Market Approach Adjusted EBITDA Multiple 0.8x – 11.8x 4.8x

4,752,997 Real Estate - Cost Approach Replacement Cost (CZK/m2) 1,237 to 1,892 1,892

Real Estate - Cost Approach Depreciation Factor 0.50 to 1.00 0.81

39,178,157 Market Approach Adjusted EBITDA Multiple 0.8x – 11.8x 4.8x Increase

4,752,997 Real Estate - Cost Approach Replacement Cost (CZK/m2) 1,237 to 1,892 1,892 Increase

Real Estate - Cost Approach Depreciation Factor 0.50 to 1.00 0.81 Increase

Real Estate - Income Approach Market Rent

CZK/Year CZK5,011,718 to CZK8,700,000 CZK5,011,718

Real Estate - Income Approach Cap Rate 6.0% to 7.0% 6.5%

CZK/Year CZK5,011,718 to CZK8,700,000 CZK5,011,718 Increase

Real Estate - Income Approach Cap Rate 6.0% to 7.0% 6.5% Decrease

Real Estate - Income Approach Adj.

Development Zone n/a 1.15

227,200 Recent Transaction Transaction Price $1,000 $1,000

Equity warrants 1,133,781 Market Approach Adjusted EBITDA Multiple 4.8x-9.0x 6.0x

Development Zone n/a 1.15 Increase

227,200 Recent Transaction Transaction Price $1,000 $1,000 Increase

Equity warrants 1,133,781 Market Approach Adjusted EBITDA Multiple 4.8x-9.0x 6.0x Increase

(1) Excludes investments with an aggregate fair value amounting to $2,474,068, which the Company valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.

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(3) Excludes investments with an aggregate fair value amounting to $68,670, which the Company valued using unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available.

Significant increases or decreases in any of the above unobservable inputs in isolation, including changes in market yields, discount rates or EBITDA multiples, may change the fair value of certain of the Company’s investments.

Generally, an increase in market yields or decrease in EBITDA multiples may result in a decrease in the fair value of certain of the Company's investments.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

The following tables present the Company’s investment portfolio at fair value as of March 31, 2021 and December 31, 2020, categorized by the ASC Topic 820 valuation hierarchy, as previously described:

Fair Value as of March 31, 2021

The following tables present the Company’s investment portfolio at fair value as of June 30, 2021 and December 31, 2020, categorized by the ASC Topic 820 valuation hierarchy, as previously described:

Fair Value as of June 30, 2021

Level 1 Level 2 Level 3 Total

23 unchanged sentences

$ 1,495,795,937

(1) The Company's investments in Jocassee, Thompson Rivers, Waccamaw River and the MVC PE Fund are measured at fair value using NAV and have not been categorized in the fair value hierarchy.

(1) The Company's investments in Jocassee, Thompson Rivers, Waccamaw River and MVC Private Equity Fund LP are measured at fair value using NAV and have not been categorized in the fair value hierarchy.

The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Unaudited Consolidated Balance Sheet and Consolidated Balance Sheet.

1 unchanged sentence

Notes to Unaudited Consolidated Financial Statements — (Continued)

The following tables reconcile the beginning and ending balances of the Company’s investment portfolio measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2021 and 2020:

Three Months Ended

March 31, 2021:

Six Months Ended

June 30, 2021:

and 1 st Lien

7 unchanged sentences

Principal repayments received (71,712,993) (17,705,291) — — (89,418,284)

Payment-in-kind interest earned 228,937 7,007,695 — — 7,236,632

Accretion of loan premium 3,089 6,640 — — 9,729

Payment-in-kind interest 482,629 7,569,986 — — 8,052,615

Accretion of loan discounts 6,416 199,434 — — 205,850

Accretion of deferred loan origination revenue 3,110,042 285,015 — — 3,395,057

2 unchanged sentences

Fair value, end of period $ 1,129,156,027 $ 186,866,059 $ 52,002,551 $ 1,137,116 $ 1,369,161,753

Three Months Ended

March 31, 2020:

Six Months Ended

June 30, 2020:

and 1 st Lien

6 unchanged sentences

Principal repayments received (17,760,617) — — (17,760,617)

Payment-in-kind interest 198,839 — — 198,839

Accretion of loan premium (9,119) — — (9,119)

4 unchanged sentences

All realized gains and losses and unrealized appreciation and depreciation are included in earnings (changes in net assets) and are reported on separate line items within the Company’s Unaudited Consolidated Statements of Operations.

Pre-tax net unrealized depreciation on Level 3 investments of $0.4 million during the three months ended March 31, 2021 was related to portfolio company investments that were still held by the Company as of March 31, 2021.

Pre-tax net unrealized depreciation on Level 3 investments of $42.6 million during the three months ended March 31, 2020 was related to portfolio company investments that were still held by the Company as of March 31, 2020.

Exclusive of short-term investments, during the three months ended March 31, 2021, the Company made investments of approximately $247.6 million in portfolio companies to which it was not previously contractually committed to provide such financing.

During the three months ended March 31, 2021, the Company made investments of $27.3 million in portfolio companies to which it was previously committed to provide such financing.

Exclusive of short-term investments, during the three months ended March 31, 2020, the Company made investments of approximately $123.1 million in portfolio companies to which it was not previously contractually committed to provide such financing.

During the three months ended March 31, 2020, the Company made investments of $5.8 million in portfolio companies to which it was previously committed to provide such financing.

Pre-tax net unrealized appreciation on Level 3 investments of $9.3 million and $8.9 million during the three and six months ended June 30, 2021, respectively, was related to portfolio company investments that were still held by the Company as of June 30, 2021.

Pre-tax net unrealized appreciation (depreciation) on Level 3 investments of $10.0 million and $(32.6) million during the three and six months ended months ended June 30, 2020, respectively, was related to portfolio company investments that were still held by the Company as of June 30, 2020.

Exclusive of short-term investments, during the six months ended June 30, 2021, the Company made investments of approximately $503.5 million in portfolio companies to which it was not previously contractually committed to provide such financing.

During the six months ended June 30, 2021, the Company made investments of $35.8 million in portfolio companies to which it was previously committed to provide such financing.

Exclusive of short-term investments, during the six months ended June 30, 2020, the Company made investments of approximately $153.3 million in portfolio companies to which it was not previously contractually committed to provide such financing.

During the six months ended June 30, 2020, the Company made investments of $13.3 million in portfolio companies to which it was previously committed to provide such financing.

Barings BDC, Inc.

33 unchanged sentences

Such fees include loan prepayment penalties, structuring fees and loan waiver and amendment fees, and are recorded as investment income when earned.

Fee income for the three months ended March 31, 2021 and 2020 was as follows:

Three Months Ended Three Months Ended

March 31, 2021 March 31, 2020

Fee income for the three and six months ended June 30, 2021 and 2020 was as follows:

Three Months Ended

Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Recurring Fee Income:

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Concentration of Credit Risk

As of both March 31, 2021 and December 31, 2020, there were no individual investments representing greater than 10% of the fair value of the Company’s portfolio.

As of March 31, 2021 and December 31, 2020, the Company’s largest single portfolio company investment, excluding short-term investments, represented approximately 2.7% and 2.5%, respectively, of the fair value of the Company’s portfolio, exclusive of short-term investments.

As of both June 30, 2021 and December 31, 2020, there were no individual investments representing greater than 10% of the fair value of the Company’s portfolio.

As of June 30, 2021 and December 31, 2020, the Company’s largest single portfolio company investment, excluding short-term investments, represented approximately 3.1% and 2.5%, respectively, of the fair value of the Company’s portfolio, exclusive of short-term investments.

Income, consisting of interest, dividends, fees, other investment income and realization of gains or losses on equity interests, can fluctuate dramatically upon repayment of an investment or sale of an equity interest and in any given year can be highly concentrated among several portfolio companies.

The Company places its cash with financial institutions and, at times, cash may exceed insured limits under applicable law.

As of March 31, 2021, all of the Company's assets were or will be pledged as collateral for the February 2019 Credit Facility.

As of June 30, 2021, all of the Company's assets were or will be pledged as collateral for the February 2019 Credit Facility.

Investments Denominated in Foreign Currencies

As of March 31, 2021 the Company held two investments that were denominated in Australian dollars, one investment that was denominated in Swedish kronas, 21 investments that were denominated in Euros and 14 investments that were denominated in British pounds sterling.

As of June 30, 2021, the Company held one investment that was denominated in Canadian dollars, two investments that were denominated in Australian dollars, one investment that was denominated in Swedish kronas, 26 investments that were denominated in Euros and 16 investments that were denominated in British pounds sterling.

As of December 31, 2020, the Company held two investments that were denominated in Australian dollars, one investment that was denominated in Swedish kronas, 17 investments that were denominated in Euros and 11 investments that were denominated in British pounds sterling .

5 unchanged sentences

Notes to Unaudited Consolidated Financial Statements — (Continued)

In addition, during both the three months ended March 31, 2021 and March 31, 2020, the Company entered into forward currency contracts primarily to help mitigate the impact that an adverse change in foreign exchange rates would have on net interest income from the Company's investments and related borrowings denominated in foreign currencies.

In addition, during both the six months ended June 30, 2021 and June 30, 2020, the Company entered into forward currency contracts primarily to help mitigate the impact that an adverse change in foreign exchange rates would have on net interest income from the Company's investments and related borrowings denominated in foreign currencies.

Net unrealized appreciation or depreciation on foreign currency contracts are included in "Net unrealized appreciation (depreciation) - foreign currency transactions" and net realized gains or losses on forward currency contracts are included in "Net realized gains (losses) - foreign currency transactions" in the Company's Unaudited Consolidated Statements of Operations.

12 unchanged sentences

To the extent these differences are permanent, they are charged or credited to additional paid in capital, or total distributable earnings (loss), as appropriate.

For federal income tax purposes, the cost of investments owned as of March 31, 2021 and December 31, 2020 was approximately $1,588.4 million and $1,486.0 million, respectively.

As of March 31, 2021, net unrealized appreciation on the Company's investments (tax basis) was approximately $5.0 million, consisting of gross unrealized appreciation, where the fair value of the Company's investments exceeds their tax cost, of approximately $30.0 million and gross unrealized depreciation, where the tax cost of the Company's investments exceeds their fair value, of approximately $25.1 million.

For federal income tax purposes, the cost of investments owned as of June 30, 2021 and December 31, 2020 was approximately $1,548.7 million and $1,486.0 million, respectively.

As of June 30, 2021, net unrealized appreciation on the Company's investments (tax basis) was approximately $19.4 million, consisting of gross unrealized appreciation, where the fair value of the Company's investments exceeds their tax cost, of approximately $43.2 million and gross unrealized depreciation, where the tax cost of the Company's investments exceeds their fair value, of approximately $23.8 million.

As of December 31, 2020, net unrealized depreciation on the Company's investments (tax basis) was approximately $1.3 million, consisting of gross unrealized appreciation, where the fair value of the Company's investments exceeds their tax cost, of approximately $23.4 million and gross unrealized depreciation, where the tax cost of the Company's investments exceeds their fair value, of approximately $24.7 million.

10 unchanged sentences

Additionally, any unrealized appreciation related to portfolio investments held by the Taxable Subsidiaries (net of unrealized depreciation related to portfolio investments held by the Taxable Subsidiaries) is reflected net of applicable federal and state income taxes, if any, in the Company's Consolidated Statements of Operations, with the related deferred tax assets or liabilities, if any, included in "Accounts payable and accrued liabilities" in the Company's Unaudited and Audited Consolidated Balance Sheets.

The Company had the following borrowings outstanding as of March 31, 2021 and December 31, 2020:

Issuance Date Maturity Date Interest Rate as of March 31, 2021 March 31, 2021 December 31, 2020

The Company had the following borrowings outstanding as of June 30, 2021 and December 31, 2020:

Issuance Date Maturity Date Interest Rate as of June 30, 2021

June 30, 2021 December 31, 2020

Credit Facilities:

29 unchanged sentences

In connection with the February 2019 Credit Facility, the Company also entered into new collateral documents.

As of March 31, 2021, the Company was in compliance with all covenants under the February 2019 Credit Facility.

As of March 31, 2021, the Company had U.S.

dollar borrowings of $357.0 million outstanding under the February 2019 Credit Facility with a weighted average interest rate of 2.125% (weighted average one month LIBOR of 0.125%), borrowings denominated in Swedish kronas of 12.8kr million ($1.5 million U.S.

As of June 30, 2021, the Company was in compliance with all covenants under the February 2019 Credit Facility.

As of June 30, 2021, the Company had U.S.

dollar borrowings of $357.0 million outstanding under the February 2019 Credit Facility with an interest rate of 2.125% (one month LIBOR of 0.125%), borrowings denominated in Swedish kronas of 12.8kr million ($1.5 million U.S.

dollars) with an interest rate of 2.000% (one month STIBOR of 0.000%), borrowings denominated in British pounds sterling of £68.3 million ($94.4 million U.S.

14 unchanged sentences

The impact resulting from changes in foreign exchange rates on the February 2019 Credit Facility borrowings is included in "Net unrealized appreciation (depreciation) - foreign currency transactions" in the Company's Unaudited Consolidated Statements of Operations.

As of March 31, 2021 and December 31, 2020, the total fair value of the borrowings outstanding under the February 2019 Credit Facility was $611.1 million and $719.7 million, respectively.

As of June 30, 2021 and December 31, 2020, the total fair value of the borrowings outstanding under the February 2019 Credit Facility was $668.5 million and $719.7 million, respectively.

The fair values of the borrowings outstanding under the February 2019 Credit Facility are based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.

13 unchanged sentences

Upon the occurrence of an event of default, the holders of at least 66-2/3% in principal amount of the August 2025 Notes at the time outstanding may declare all August 2025 Notes then outstanding to be immediately due and payable.

As of March 31, 2021, the Company was in compliance with all covenants under the August 2020 NPA.

As of June 30, 2021, the Company was in compliance with all covenants under the August 2020 NPA.

The August 2025 Notes were offered in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).

The August 2025 Notes have not and will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, as applicable.

As of both March 31, 2021 and December 31, 2020, the fair value of the outstanding August 2025 Notes was $50.0 million.

As of both June 30, 2021 and December 31, 2020, the fair value of the outstanding August 2025 Notes was $50.0 million.

The fair value determination of the August 2025 Notes was based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.

11 unchanged sentences

Upon the occurrence of an event of default, the holders of at least 66-2/3% in principal amount of the November Notes at the time outstanding may declare all November Notes then outstanding to be immediately due and payable.

As of March 31, 2021, the Company was in compliance with all covenants under the November 2020 NPA.

As of June 30, 2021, the Company was in compliance with all covenants under the November 2020 NPA.

Barings BDC, Inc.

2 unchanged sentences

The November Notes have not and will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, as applicable.

As of both March 31, 2021 and December 31, 2020, the fair value of the outstanding Series B Notes and the Series C Notes was $62.5 million and $112.5 million, respectively.

As of both June 30, 2021 and December 31, 2020, the fair value of the outstanding Series B Notes and the Series C Notes was $62.5 million and $112.5 million, respectively.

The fair value determinations of the Series B Notes and Series C Notes were based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.

15 unchanged sentences

Upon the occurrence of certain events of default, the holders of at least 66-2/3% in principal amount of the February Notes at the time outstanding may declare all February Notes then outstanding to be immediately due and payable.

As of March 31, 2021, the Company was in compliance with all covenants under the February 2021 NPA.

As of June 30, 2021, the Company was in compliance with all covenants under the February 2021 NPA.

The February Notes were offered in reliance on Section 4(a)(2) of the Securities Act.

The February Notes have not and will not be registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, as applicable.

As of March 31, 2021, the fair value of the outstanding Series D Notes and the Series E Notes was $80.0 million and $70.0 million, respectively.

As of June 30, 2021, the fair value of the outstanding Series D Notes and the Series E Notes was $80.0 million and $70.0 million, respectively.

The fair value determinations of the Series D Notes and Series E Notes were based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.

5 unchanged sentences

See “Note 2 – Agreements and Related Party Transactions” for additional information regarding the Credit Support Agreement.

Net unrealized depreciation on the Credit Support Agreement is included in "Net unrealized appreciation (depreciation) - credit support agreement" in the Company’s Unaudited Consolidated Statements of Operations.

The following tables presents the fair value and aggregate unrealized depreciation of the Company's Credit Support Agreement as of March 31, 2021 and December 31, 2020:

As of March 31, 2021:

Description Counter Party Settlement Date Notional Amount Value Unrealized Appreciation (Depreciation)

Net unrealized appreciation or depreciation on the Credit Support Agreement is included in "Net unrealized appreciation (depreciation) - credit support agreement" in the Company’s Unaudited Consolidated Statements of Operations.

The following tables presents the fair value and aggregate unrealized depreciation of the Company's Credit Support Agreement as of June 30, 2021 and December 31, 2020:

As of June 30, 2021:

Counter Party Settlement Date Notional Amount Value Unrealized Appreciation (Depreciation)

Credit Support Agreement Barings LLC 01/01/31 $ 23,000,000 $ 14,300,006 $ 700,006

1 unchanged sentence

As of December 31, 2020:

Description Counter Party Settlement Date Notional Amount Value Unrealized Appreciation (Depreciation)

Counter Party Settlement Date Notional Amount Value Unrealized Appreciation (Depreciation)

Credit Support Agreement Barings LLC 01/01/31 $ 23,000,000 $ 13,600,000 $ —

Total Credit Support Agreement $ —

As of March 31, 2021 and December 31, 2020, the fair value of the Credit Support Agreement was $12.0 million and $13.6 million, respectively, and is included in "Credit support agreement" in the accompanying Unaudited and Audited Consolidated Balance Sheets.

As of June 30, 2021 and December 31, 2020, the fair value of the Credit Support Agreement was $14.3 million and $13.6 million, respectively, and is included in "Credit support agreement" in the accompanying Unaudited and Audited Consolidated Balance Sheets.

The fair value of the Credit Support Agreement was determined based on an income approach, with the primary inputs being the enterprise value, the continuously annual risk-free interest rate, a measure of expected asset volatility, and the expected time until an exit event for each portfolio company in the Reference Portfolio, which are all Level 3 inputs.

5 unchanged sentences

Notes to Unaudited Consolidated Financial Statements — (Continued)

The following tables presents the Company's foreign currency forward contracts as of March 31, 2021 and December 31, 2020:

As of March 31, 2021:

Description Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Gross Amount of Recognized Assets (Liabilities) Balance Sheet Location of Net Amounts

The following tables presents the Company's foreign currency forward contracts as of June 30, 2021 and December 31, 2020:

As of June 30, 2021:

Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Gross Amount of Recognized Assets (Liabilities) Balance Sheet Location of Net Amounts

Foreign currency forward contract (AUD) $853,209 A$1,114,133 07/07/21 $ 16,750 Prepaid expenses and other assets

1 unchanged sentence

Foreign currency forward contract (AUD) $843,201 A$1,114,133 10/06/21 6,439 Prepaid expenses and other assets

Foreign currency forward contract (EUR) €5,800,000 $6,809,925 04/01/21 6,812 Prepaid expenses and other assets

Foreign currency forward contract (EUR) $16,496,839 €13,762,578 04/06/21 321,689 Prepaid expenses and other assets

Foreign currency forward contract (CAD) C$6,000,000 $4,863,920 07/07/21 (18,596) Derivative liability

Foreign currency forward contract (CAD) $4,974,150 C$6,000,000 07/07/21 128,825 Prepaid expenses and other assets

Foreign currency forward contract (CAD) $4,863,825 C$6,000,000 10/06/21 18,572 Prepaid expenses and other assets

Foreign currency forward contract (EUR) €20,518,045 $24,952,136 07/07/21 (617,138) Derivative liability

Foreign currency forward contract (EUR) $24,184,783 €20,518,045 07/07/21 (150,216) Derivative liability

Foreign currency forward contract (EUR) $5,039,910 €4,218,045 10/06/21 27,868 Prepaid expenses and other assets

1 unchanged sentence

Foreign currency forward contract (GBP) $3,289,859 £2,388,498 07/07/21 (9,783) Derivative liability

Foreign currency forward contract (GBP) $3,289,859 £2,388,498 07/07/21 (6,517) Derivative liability

Foreign currency forward contract (SEK) $164,325 1,356,628kr 04/06/21 8,682 Prepaid expenses and other assets

Foreign currency forward contract (GBP) $3,316,255 £2,388,498 10/06/21 15,940 Prepaid expenses and other assets

Foreign currency forward contract (SEK) $176,315 1,530,825kr 07/07/21 (2,693) Derivative liability

Foreign currency forward contract (SEK) 1,530,825kr $179,964 07/07/21 (956) Derivative liability

Foreign currency forward contract (SEK) $180,113 1,530,825kr 10/06/21 955 Prepaid expenses and other assets

1 unchanged sentence

As of December 31, 2020:

Description Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Gross Amount of Recognized Assets (Liabilities) Balance Sheet Location of Net Amounts

Notional Amount to be Purchased Notional Amount to be Sold Maturity Date Gross Amount of Recognized Assets (Liabilities) Balance Sheet Location of Net Amounts

Foreign currency forward contract (AUD) $8,471,304 A$11,378,670 01/05/21 $ (309,049) Derivative liability

11 unchanged sentences

Total $ (478,891)

As of March 31, 2021 and December 31, 2020, the total fair value of the Company's foreign currency forward contracts was $232,705 and $(478,891), respectively.

As of June 30, 2021 and December 31, 2020, the total fair value of the Company's foreign currency forward contracts was $(0.6) million and $(0.5) million, respectively.

The fair values of the Company's foreign currency forward contracts are based on unadjusted prices from independent pricing services and independent indicative broker quotes, which are Level 2 inputs.

4 unchanged sentences

Since commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

As of March 31, 2021 and December 31, 2020, the Company believed that it had adequate financial resources to satisfy its unfunded commitments.

The balances of unused commitments to extend financing as of March 31, 2021 and December 31, 2020 were as follows:

Portfolio Company(1) Investment Type March 31,

As of June 30, 2021 and December 31, 2020, the Company believed that it had adequate financial resources to satisfy its unfunded commitments.

The balances of unused commitments to extend financing as of June 30, 2021 and December 31, 2020 were as follows:

Portfolio Company Investment Type June 30, 2021

December 31, 2020

ADE Holding(1)(3) Committed Capex Line $ — $ 91,814

Anju Software, Inc.

Delayed Draw Term Loan 1,981,371 1,981,371

Air Comm Corporation, LLC(1) Delayed Draw Term Loan 2,027,027 —

Anju Software, Inc.(1) Delayed Draw Term Loan 1,981,371 1,981,371

Arch Global Precision, LLC(1) Delayed Draw Term Loan 2,540,509 4,193,475

4 unchanged sentences

British Engineering Services Holdco Limited(1)(4) Bridge Revolver 624,735 618,177

Canadian Orthodontic Partners Corp(1)(2)(6) Delayed Draw Term Loan 448,717 —

Centralis Finco S.a.r.l.(1)(3) Acquisition Facility 480,689 495,950

Classic Collision (Summit Buyer, LLC)(1) Delayed Draw Term Loan — 1,672,446

CM Acquisitions Holdings Inc.

Delayed Draw Term Loan 1,551,602 1,551,602

CM Acquisitions Holdings Inc.(1) Delayed Draw Term Loan 1,247,359 1,551,602

Contabo Finco S.À R.L(1)(3) Delayed Draw Term Loan 221,189 228,211

Crash Champions, LLC(1)(2) Delayed Draw Term Loan 2,666,667 —

CSL Dualcom(1)(4) Delayed Draw Term Loan 1,017,866 1,007,182

Dart Buyer, Inc.

Delayed Draw Term Loan 2,430,569 2,430,569

Dart Buyer, Inc.(1) Delayed Draw Term Loan 2,430,569 2,430,569

DreamStart Bidco SAS(1)(3) Acquisition Facility 965,004 995,640

EPS NASS Parent, Inc.(1)(2) Delayed Draw Term Loan 1,310,051 —

F24 (Stairway BidCo GmbH)(1)(3) Acquisition Facility 422,480 323,840

Fineline Technologies, Inc.(1) Delayed Draw Term Loan 180,000 —

FitzMark Buyer, Inc.

Delayed Draw Term Loan 1,470,588 1,470,588

Foundation Risk Partners, Corp.

Delayed Draw Term Loan 4,716,805 4,984,771

FitzMark Buyer, Inc.(1) Delayed Draw Term Loan — 1,470,588

Foundation Risk Partners, Corp.(1) Delayed Draw Term Loan 3,444,445 4,984,771

FragilePak LLC(1)(2) Delayed Draw Term Loan 4,687,500 —

Heartland, LLC(1) Delayed Draw Term Loan 4,850,912 5,347,666

1 unchanged sentence

Home Care Assistance, LLC(1) Delayed Draw Term Loan 741,299 —

IGL Holdings III Corp.

Delayed Draw Term Loan 5,914,219 5,914,219

IGL Holdings III Corp.(1) Delayed Draw Term Loan 5,914,219 5,914,219

IM Square(1)(2)(3) Acquisition Facility 8,064,124 —

Innovad Group II BV(1)(3) Delayed Draw Term Loan 1,902,687 —

INOS 19-090 GmbH(1)(2)(3) Acquisition Facility 2,644,039 2,727,980

1 unchanged sentence

Kano Laboratories LLC(1) Delayed Draw Term Loan 4,543,950 4,543,950

Kene Acquisition, Inc.

Delayed Draw Term Loan — 322,928

Kene Acquisition, Inc.(1) Delayed Draw Term Loan — 322,928

LAF International(1)(2)(3) Acquisition Facility 355,770 —

3 unchanged sentences

Navia Benefit Solutions, Inc.(1) Delayed Draw Term Loan 1,600,000 —

Options Technology Ltd.

Delayed Draw Term Loan 2,604,080 2,604,080

OG III B.V.(1)(2)(3) Acquisition Capex Facility 2,498,751 —

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Portfolio Company Investment Type June 30, 2021

December 31, 2020

Options Technology Ltd.(1) Delayed Draw Term Loan — 2,604,080

Pacific Health Supplies Bidco Pty Limited(1)(5) CapEx Term Loan 1,324,375 1,535,025

Premier Technical Services Group(1)(4) Acquisition Facility 936,187 1,197,505

Premium Invest(1)(2)(3) Acquisition Facility 5,099,373 —

Protego Bidco B.V.(1)(3) Delayed Draw Term Loan 880,421 —

3 unchanged sentences

Radwell International, LLC(1) Delayed Draw Term Loan — 3,235,947

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

Portfolio Company(1) Investment Type March 31,

2021 December 31, 2020

Rep Seko Merger Sub LLC(1) Delayed Draw Term Loan 1,454,545 1,454,546

Safety Products Holdings, LLC(1) Delayed Draw Term Loan 6,467,345 6,467,345

Security Holdings B.V.(1)(2) Delayed Draw Term Loan 2,371,801 —

Security Holdings B.V.(1)(2) Revolver 1,185,901 —

Smile Brands Group, Inc.(1) Delayed Draw Term Loan 2,148,691 2,148,691

6 unchanged sentences

Waccamaw River Joint Venture 19,475,000 —

W2O Holdings, Inc.

Delayed Draw Term Loan 5,989,298 5,989,298

W2O Holdings, Inc.(1) Delayed Draw Term Loan 5,989,298 5,989,298

Total unused commitments to extend financing $ 164,428,050 $ 159,236,659

10 unchanged sentences

dollars based on the spot rate at the relevant balance sheet date.

(6) Actual commitment amount is denominated in Canadian dollars.

Commitment was translated into U.S.

dollars based on the spot rate at the relevant balance sheet date.

In the normal course of business, the Company guarantees certain obligations in connection with its portfolio companies (in particular, certain controlled portfolio companies).

Under these guarantee arrangements, payments may be required to be made to third parties if such guarantees are called upon or if the portfolio companies were to default on their related obligations, as applicable.

As of March 31, 2021 and December 31, 2020, the Company had guaranteed € 9.9 million ($11.6 million U.S.

As of June 30, 2021 and December 31, 2020, the Company had guaranteed € 9.9 million ($11.7 million U.S.

dollars and $12.1 million U.S.

4 unchanged sentences

dollars based on the spot rate at the relevant balance sheet date.

In addition, the Company agreed to cash collateralize a $3.5 million letter of credit for Security Holdings B.V.

The $3.5 million cash collateralization is reflected as "Restricted cash" on the accompanying Unaudited and Audited Consolidated Balance Sheets.

In addition, as of December 31, 2020, the Company agreed to cash collateralize a $3.5 million letter of credit for Security Holdings B.V.

The $3.5 million cash collateralization was reflected as "Restricted cash" on the accompanying Audited Consolidated Balance Sheet as of December 31, 2020.

The letter of credit expired on April 30, 2021, and as of June 30, 2021, none of the Company’s cash was restricted.

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

The Company and certain of its former executive officers have been named as defendants in two putative securities class action lawsuits, each filed in the United States District Court for the Southern District of New York (and then transferred to the United States District Court for the Eastern District of North Carolina) on behalf of all persons who purchased or otherwise acquired our common stock between May 7, 2014 and November 1, 2017.

17 unchanged sentences

On October 17, 2019, the plaintiff filed a notice of appeal seeking review of the court’s September 20, 2019 order.

The plaintiff

Barings BDC, Inc.

Notes to Unaudited Consolidated Financial Statements — (Continued)

filed its opening brief with the United States Court of Appeals for the Fourth Circuit on January 6, 2020.

The plaintiff filed its opening brief with the United States Court of Appeals for the Fourth Circuit on January 6, 2020.

The defendants filed their response brief on February 28, 2020, and the plaintiff filed its reply brief on March 27, 2020.

1 unchanged sentence

On February 22, 2021, the United States Court of Appeals for the Fourth Circuit affirmed the court’s September 20, 2019 order dismissing the action with prejudice.

The deadline for the plaintiff to file a petition for a writ of certiorari in the United States Supreme Court has expired.

Consequently, the complaint is dismissed with prejudice and the case is over.

Other than as set forth above, neither the Company, the Adviser, nor the Company’s subsidiaries are currently subject to any material pending legal proceedings, other than ordinary routine litigation incidental to their respective businesses.

4 unchanged sentences

COVID-19 Developments

During the three months ended March 31, 2021, the spread of the Coronavirus and the COVID-19 pandemic continued to have a significant impact on the U.S and global economies.

During the six months ended June 30, 2021, the Coronavirus and the COVID-19 pandemic continued to have a significant impact on the U.S and global economies.

To the extent the Company's portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on the Company's future net investment income, the fair value of its portfolio investments, its financial condition and the results of operations and financial condition of the Company's portfolio companies.

2 unchanged sentences

FINANCIAL HIGHLIGHTS

The following is a schedule of financial highlights for the three months ended March 31, 2021 and 2020:

Three Months Ended March 31,

The following is a schedule of financial highlights for the six months ended June 30, 2021 and 2020:

Six Months Ended June 30,

Per share data:

6 unchanged sentences

Purchases of shares in share repurchase plan — 0.05

Other (0.01) —

Loss on extinguishment of debt(1) — (0.01)

Net asset value at end of period $ 11.39 $ 10.23

14 unchanged sentences

SUBSEQUENT EVENTS

Subsequent to March 31, 2021, the Company made approximately $156.3 million of new commitments, of which $106.4 million closed and funded.

The $106.4 million of investments consist of $82.6 million of first lien senior secured debt investments, $20.9 million of second lien senior secured and subordinated debt investments and a $2.9 million equity investments with a combined weighted average yield on debt investments of 6.7%.

Subsequent to June 30, 2021, the Company made approximately $185.6 million of new commitments, of which $150.3 million closed and funded.

The $150.3 million of investments consist of $53.9 million of first lien senior secured debt investments, $6.6 million of second lien senior secured and subordinated debt investments and an $89.8 million equity co-investment alongside certain affiliates in a portfolio company focused on directly originated, senior-secured asset-based loans to middle-market companies.

The weighted average yield of the debt investments was 7.5%.

In addition, the Company funded $18.4 million of previously committed delayed draw term loans.

On May 6, 2021, the Board declared a quarterly distribution of $0.20 per share payable on June 16, 2021 to holders of record as of June 9, 2021.

On August 5, 2021, the Board declared a quarterly distribution of $0.21 per share payable on September 15, 2021 to holders of record as of September 8, 2021.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements