DealsJun 1, 2026, 04:15 PM
Barings BDC Terminates Prior Credit Support Agreement, Enters New One
AI Summary
Barings BDC, Inc. (BBDC) announced the termination of its prior Credit Support Agreement (CSA) with Barings LLC, receiving a cash payment of $67,027,611. Concurrently, a new Credit Support Agreement (New CSA) was established, providing credit support for remaining unrealized investments valued at $10,994,928. The New CSA outlines a settlement mechanism involving the waiver of advisory fees and potential cash payments from the Adviser to BBDC to cover losses up to the Remaining Obligation, with a settlement date no later than April 1, 2032.
Key Highlights
- Barings LLC terminated the Sierra Credit Support Agreement dated Feb 25, 2022.
- Barings LLC paid $67,027,611 to Barings BDC, Inc. to terminate the Prior CSA.
- A new Credit Support Agreement (New CSA) was entered into by Barings LLC and Barings BDC, Inc.
- The New CSA provides credit support for remaining unrealized investments valued at $10,994,928.
- The Adviser (Barings LLC) will waive incentive and base management fees to cover losses under the New CSA.
- The New CSA has a Designated Settlement Date of April 1, 2032, or earlier if the Reference Portfolio is fully realized.
- The Adviser will make a cash payment if Covered Losses exceed waived fees during the Waiver Period.
Price Impact
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