Kayne Anderson BDC (KBDC) Earnings Transcript

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Tuesday, March 3, 2026 astatine 10 a.m. ET

• Chief Executive Officer — Ken Leonard

• President and Chief Investment Officer — Frank Karl

• Chief Financial Officer — Terry Hart

• Managing Director — Doug Goodwillie

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Ken Leonard: Good morning, and convey you for joining america today. I volition statesman by providing an overview of our 4th fourth results, and past stock immoderate thoughts connected the existent nonstop lending marketplace conditions. I program to item however Kayne Anderson BDC, Inc.'s worth lending strategy has created a unsocial portfolio good positioned to upwind immoderate existent headwinds associated with the marketplace dislocation related to bundle and/or tariffs. Frank Karl volition past supply a much elaborate overview of our portfolio and performance, earlier Terry Hart concludes with Kayne Anderson BDC, Inc.'s fiscal results. I americium pleased to study different coagulated 4th for Kayne Anderson BDC, Inc. arsenic we closed retired 2025 connected a beardown note.

For the 4th quarter, we generated nett concern income of $0.44 per share, representing an summation from $0.43 per stock successful the 3rd 4th and a premium to the declared dividend. This show translates to an annualized instrumentality connected equity of 10.8%, demonstrating our continued quality to make charismatic risk-adjusted returns for shareholders successful what has different been a noisy play for the BDC sector. Our nett plus worth per stock was $16.32 astatine 4th end, down somewhat from $16.34 successful the anterior quarter, reflecting the interaction of immoderate marks of the portfolio which was partially offset by caller concern originations and our strategical stock repurchase enactment during the period.

Our dividend sum ratio was 110%, supporting our regular quarterly distribution, and our committee of directors has declared a regular dividend of $0.40 per stock for the archetypal 4th payable connected 04/16/2026 to shareholders of grounds arsenic of 03/31/2026. I would similar to adhd that based connected our existent presumption of the marketplace and our portfolio, we expect to beryllium capable to wage the $0.40 dividend for the entirety of 2026. Our portfolio continues to execute good from a recognition perspective, with lone 1.4% of the investments connected nonaccrual status. The portfolio's weighted mean output of astir 10.3% connected our income-producing investments positions america good to proceed generating charismatic returns successful the existent involvement complaint environment.

These results underscore the resilience of our concern attack and the prime of our portfolio construction, with 93% of our portfolio structured arsenic elder secured debt. As mentioned successful my introduction, our worth lending strategy deliberately avoids highly leveraged loans—what we telephone “deep and cheap”—made to bundle businesses. While galore BDC peers study much than 20% of their portfolios allocated there, our portfolio has astir 2% to these sectors. Instead, Kayne Anderson backstage recognition has a agelong way grounds providing loans to halfway mediate marketplace companies operating successful traditional, unchangeable manufacture sectors specified arsenic concern and concern services, distribution, and nutrient products. Our underwriting emphasizes durable currency flows, tangible endeavor value, and disciplined leverage profiles.