Barings BDC, Inc.

Previous wording

The following discussion is designed to provide a better understanding of our Unaudited Consolidated Financial Statements for the three months ended March 31, 2026, including a brief discussion of our business, key factors that impacted our performance and a summary of our operating results. The following discussion should be read in conjunction with the Unaudited Consolidated Financial Statements and the notes thereto included in Item 1 of this Quarterly Report on Form 10-Q, and the Consolidated Financial Statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2025. Historical results and percentage relationships among any amounts in the financial statements are not necessarily indicative of trends in operating results for any future periods.

Current wording

The following discussion is designed to provide a better understanding of our Unaudited Consolidated Financial Statements for the three and six months ended June 30, 2026, including a brief discussion of our business, key factors that impacted our performance and a summary of our operating results. The following discussion should be read in conjunction with the Unaudited Consolidated Financial Statements and the notes thereto included in Item 1 of this Quarterly Report on Form 10-Q, and the Consolidated Financial Statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2025. Historical results and percentage relationships among any amounts in the financial statements are not necessarily indicative of trends in operating results for any future periods.

Previous wording

We are a Maryland corporation incorporated on October 10, 2006. In August 2018, in connection with the closing of an externalization transaction through which Barings LLC (“Barings” or the “Adviser”) agreed to become our external investment adviser, we entered into an investment advisory agreement and an administration agreement (the “Administration Agreement”) with Barings. In connection with the completion of our acquisition of MVC Capital, Inc., a Delaware corporation, on December 23, 2020 (the “MVC Acquisition”), we entered into an amended and restated investment advisory agreement (the “Amended and Restated Advisory Agreement”) with Barings on December 23, 2020, following approval of the Amended and Restated Advisory Agreement by our stockholders at our December 23, 2020 special meeting of stockholders. The terms of the Amended and Restated Advisory Agreement became effective on January 1, 2021. In connection with the completion of our acquisition of Sierra Income Corporation on February 25, 2022 (the “Sierra Merger”), we entered into a second amended and restated investment advisory agreement (the “Second Amended Barings BDC Advisory Agreement”) with the Adviser. On June 24, 2023, we entered into the third amended and restated advisory agreement with the Adviser in order to update the term of the agreement to expire on June 24 of each year subject to annual re-approval in accordance with its terms (the “Barings BDC Advisory Agreement”). All other terms and provisions of the Second Amended Barings BDC Advisory Agreement between us the Adviser, including with respect to the calculation of the fees payable to the Adviser, remained unchanged under the Barings BDC Advisory Agreement. Under the terms of the Barings BDC Advisory Agreement and the Administration Agreement,

Current wording

We are a Maryland corporation incorporated on October 10, 2006. In August 2018, in connection with the closing of an externalization transaction through which Barings LLC (“Barings” or the “Adviser”) agreed to become our external investment adviser, we entered into an investment advisory agreement and an administration agreement (the “Administration Agreement”) with Barings. In connection with the completion of our acquisition of MVC Capital, Inc., a Delaware corporation, on December 23, 2020, we entered into an amended and restated investment advisory agreement (the “Amended and Restated Advisory Agreement”) with Barings on December 23, 2020, following approval of the Amended and Restated Advisory Agreement by our stockholders at our December 23, 2020 special meeting of stockholders. The terms of the Amended and Restated Advisory Agreement became effective on January 1, 2021. In connection with the completion of our acquisition of Sierra Income Corporation on February 25, 2022 (the “Sierra Merger”), we entered into a second amended and restated investment advisory agreement (the “Second Amended Barings BDC Advisory Agreement”) with the Adviser. On June 24, 2023, we entered into the third amended and restated advisory agreement with the Adviser in order to update the term of the agreement to expire on June 24 of each year subject to annual re-approval in accordance with its terms (the “Barings BDC Advisory Agreement”). All other terms and provisions of the Second Amended Barings BDC Advisory Agreement between us and the Adviser, including with respect to the calculation of the fees payable to the Adviser, remained unchanged under the Barings BDC Advisory Agreement. Under the terms of the Barings BDC Advisory Agreement and the Administration Agreement, Barings serves as our investment adviser and administrator and manages our investment portfolio and performs (or oversees, or arranges for, the performance of) the administrative services necessary for our operation.

Previous wording

Our investment adviser, Barings, a subsidiary of Massachusetts Mutual Life Insurance Company, is a leading global asset management firm and is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended. Barings’ primary investment capabilities include fixed income, private credit, real estate, equity, and alternative investments. Subject to the oversight of our Board of Directors (the “Board”), the portfolio managers manage our day-to-day operations with the support of the relevant Barings investment teams and investment committees which provide investment advisory and management services to us. Barings Global Private Finance and Capital Solutions investment teams (“Barings GPF”) is part of Barings’ $383.8 billion Global Fixed Income Platform (as of March 31, 2026) that invests in liquid, private and structured credit. Barings GPF manages private funds and separately managed accounts, along with multiple public vehicles.

Current wording

Our investment adviser, Barings, a subsidiary of Massachusetts Mutual Life Insurance Company, is a leading global asset management firm and is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, as amended. Barings’ primary investment capabilities include fixed income, private credit, real estate, equity, and alternative investments. Subject to the oversight of our Board of Directors (the “Board”), the portfolio managers manage our day-to-day operations with the support of the relevant Barings investment teams and investment committees which provide investment advisory and management services to us. Barings Global Private Finance and Capital Solutions investment teams (“Barings GPF”) is part of Barings’ $392.1 billion Global Fixed Income Platform (as of June 30, 2026) that invests in liquid, private and structured credit. Barings GPF manages private funds and separately managed accounts, along with multiple public vehicles.

Previous wording

On July 24, 2018, our stockholders voted at a special meeting of stockholders (the “2018 Special Meeting”) to approve a proposal to authorize us to be subject to a reduced asset coverage ratio of at least 150% under the 1940 Act. As a result of the stockholder approval at the 2018 Special Meeting, effective July 25, 2018, our applicable asset coverage ratio under the 1940 Act has been decreased to 150% from 200%. As a result, we are permitted under the 1940 Act to incur indebtedness at a level which is more consistent with a portfolio of senior secured debt. As of March 31, 2026, our asset coverage ratio was 180.6%.

Current wording

On July 24, 2018, our stockholders voted at a special meeting of stockholders (the “2018 Special Meeting”) to approve a proposal to authorize us to be subject to a reduced asset coverage ratio of at least 150% under the 1940 Act. As a result of the stockholder approval at the 2018 Special Meeting, effective July 25, 2018, our applicable asset coverage ratio under the 1940 Act has been decreased to 150% from 200%. As a result, we are permitted under the 1940 Act to incur indebtedness at a level which is more consistent with a portfolio of senior secured debt. As of June 30, 2026, our asset coverage ratio was 181.2%.

Previous wording

The total value of our investment portfolio was $2,370.0 million as of March 31, 2026, as compared to $2,398.5 million as of December 31, 2025. As of March 31, 2026, we had investments in 331 portfolio companies with an aggregate cost of $2,405.9 million. As of December 31, 2025, we had investments in 333 portfolio companies with an aggregate cost of $2,424.3 million. As of both March 31, 2026 and December 31, 2025, none of our portfolio investments represented greater than 10% of the total fair value of our investment portfolio.

Current wording

The total value of our investment portfolio was $2,458.6 million as of June 30, 2026, as compared to $2,398.5 million as of December 31, 2025. As of June 30, 2026, we had investments in 342 portfolio companies with an aggregate cost of $2,500.4 million. As of December 31, 2025, we had investments in 333 portfolio companies with an aggregate cost of $2,424.3 million. As of both June 30, 2026 and December 31, 2025, none of our portfolio investments represented greater than 10% of the total fair value of our investment portfolio.

Previous wording

During the three months ended March 31, 2026, we made 13 new portfolio company investments totaling $54.7 million and made investments in existing portfolio companies totaling $54.0 million. We had 10 loans repaid totaling $66.4 million and recognized a net realized gain on these transactions of $0.5 million. We also received $31.4 million of portfolio company principal payments and sales proceeds and recognized a net realized loss on these transactions of $0.9 million. We received $22.3 million of return of capital from our joint ventures, equity, and royalty rights investments. Also, investments in one portfolio company were restructured, which resulted in a net realized loss of $4.5 million. Lastly, we received proceeds related to the sale of equity investments and the Sierra Income Corporation (“Sierra”) collateralized loan obligation (“CLO”) investments totaling $5.3 million and recognized a net realized loss on such sales totaling $3.2 million.

Current wording

During the six months ended June 30, 2026, we made 34 new portfolio company investments totaling $231.0 million and made investments in existing portfolio companies totaling $139.8 million. We had 18 loans repaid totaling $115.7 million and recognized a net realized gain on these transactions of $0.3 million. We also received $90.0 million of portfolio company principal payments and sales proceeds and recognized a net realized loss on these transactions of $0.2 million. In addition, we sold $51.7 million of middle-market portfolio debt investments to our joint venture, recognizing a net realized loss on these transactions of $0.1 million. We received $27.2 million of return of capital from our joint ventures, equity, and royalty rights investments. Also, investments in three portfolio companies were restructured, which resulted in a net realized loss of $11.6 million. Lastly, we received proceeds related to the sale of equity investments and the collateralized loan obligation (“CLO”) investments acquired in the Sierra Merger totaling $8.1 million and recognized a net realized loss on such sales totaling $3.6 million.

Previous wording

During the three months ended March 31, 2025, we made 14 new portfolio company investments totaling $128.2 million and made investments in existing portfolio companies totaling $78.7 million. We had 10 loans repaid totaling $66.1 million and recognized a net realized loss on these transactions of $10.2 million. We also received $33.9 million of portfolio company principal payments and sales proceeds and recognized a net realized loss on these transactions of $0.4 million. We received $5.2 million of return of capital from our joint ventures, equity, and royalty rights investments. Lastly, we received proceeds related to the sales and exits of equity investments totaling $1.1 million and recognized a net realized loss on such sales totaling $7.1 million.

Current wording

During the six months ended June 30, 2025, we made 33 new portfolio company investments totaling $266.9 million and made investments in existing portfolio companies totaling $139.0 million. We had 24 loans repaid totaling $125.2 million and recognized a net realized loss on these transactions of $27.9 million. We also received $69.4 million of portfolio company principal payments and sales proceeds and recognized a net realized loss on these transactions of $0.1 million. We received $9.2 million of return of capital from our joint ventures, equity, and royalty rights investments. We also received proceeds of $4.7 million related to the exit of one of our royalty rights investments and recognized a realized gain on such exit of $2.5 million. In addition, we sold $55.9 million of middle-market portfolio debt investments to our joint ventures, recognizing a net realized gain on these transactions of $0.7 million. Also, investments in two portfolio companies were restructured, which resulted in a net realized loss of $2.3 million. Lastly, we received proceeds related to the sales and exits of equity investments totaling $9.1 million and recognized a net realized loss on such sales totaling $1.7 million.

Previous wording

Total portfolio investment activity for the three months ended March 31, 2026 and 2025 was as follows:

Current wording

Total portfolio investment activity for the six months ended June 30, 2026 and 2025 was as follows:

Previous wording

(1) Excludes 9.1% member interest in Jocassee Partners LLC.

Current wording

(1) Excludes 9.1% member interest in Jocassee.

Previous wording

Generally, when interest and/or principal payments on a loan become past due, or if we otherwise do not expect the borrower to be able to service its debt and other obligations, we will place the loan on non-accrual status and will generally cease recognizing interest income on that loan for financial reporting purposes until all principal and interest have been brought current through payment or due to a restructuring such that the interest income is deemed to be collectible. As of March 31, 2026, we had 10 portfolio companies with investments on non-accrual, the aggregate fair value of which was $23.9 million, which comprised 1.0% of the total fair value of our portfolio, and the aggregate cost of which was $48.2 million, which comprised 2.0% of the total cost of our portfolio. Excluding the non-accrual assets that are covered by the Sierra Credit Support Agreement (as defined in “Note 2. Agreements and Related Party Transactions”) with Barings, the non-accruals as of March 31, 2026 comprised 0.6% of the total fair value of our portfolio and 1.3% of the aggregate cost of our portfolio. As of December 31, 2025, we had seven portfolio companies with investments on non-accrual, the aggregate fair value of which was $17.0 million, which comprised 0.7% of the total fair value of our portfolio, and the aggregate cost of which was $33.5 million, which comprised 1.4% of the total cost of our portfolio. Excluding the non-accrual assets that are covered by the Sierra Credit Support Agreement with Barings, the non-accruals as of December 31, 2025 comprised 0.2% of the total fair value of our portfolio and 0.7% of the aggregate cost of our portfolio.

Current wording

Generally, when interest and/or principal payments on a loan become past due, or if we otherwise do not expect the borrower to be able to service its debt and other obligations, we will place the loan on non-accrual status and will generally cease recognizing interest income on that loan for financial reporting purposes until all principal and interest have been brought current through payment or due to a restructuring such that the interest income is deemed to be collectible. As of June 30, 2026, we had 11 portfolio companies with investments on non-accrual, the aggregate fair value of which was $13.7 million, which comprised 0.6% of the total fair value of our portfolio, and the aggregate cost of which was $38.3 million, which comprised 1.5% of the total cost of our portfolio. Excluding the non-accrual assets that are covered by the New Sierra Credit Support Agreement (as defined in “Note 2. Agreements and Related Party Transactions”) with Barings, the non-accruals as of June 30, 2026 comprised 0.2% of the total fair value of our portfolio and 0.9% of the aggregate cost of our portfolio. As of December

Previous wording

During the quarter ended June 30, 2025, we placed our debt investment in Acogroup on non-accrual status. As a result, under U.S. generally accepted accounting principles (“U.S. GAAP”), we will not recognize interest income on our debt investment in Acogroup for financial reporting purposes. As of March 31, 2026, the cost of our debt investment in Acogroup was $8.1 million and the fair value of such investment was $2.5 million.

Current wording

During the quarter ended June 30, 2025, we placed our debt investment in Acogroup on non-accrual status. As a result, under U.S. generally accepted accounting principles (“U.S. GAAP”), we will not recognize interest income on our debt investment in Acogroup for financial reporting purposes. As of June 30, 2026, the cost of our debt investment in Acogroup was $8.1 million and the fair value of such investment was $1.6 million.

Previous wording

During the quarter ended December 31, 2025, we placed our first lien EURIBOR + 4.00% debt investment in Bariacum S.A., or Bariacum, on non-accrual status. As a result, under U.S. GAAP, we will not recognize interest income on our first lien EURIBOR + 4.00% debt investment in Bariacum for financial reporting purposes. As of March 31, 2026, the cost of our first lien EURIBOR + 4.00% debt investment in Bariacum was $3.3 million and the fair value of such investment was nil.

Current wording

During the quarter ended December 31, 2025, we placed our debt investment in Bariacum S.A., or Bariacum, on non-accrual status. As a result, under U.S. GAAP, we will not recognize interest income on our debt investment in Bariacum for financial reporting purposes. As of June 30, 2026, the cost of our debt investment in Bariacum was $3.3 million and the fair value of such investment was nil.

Previous wording

During the quarter ended September 30, 2024, we placed our debt investment in Biolam Group, or Biolam, on non-accrual status. As a result, under U.S. GAAP, we will not recognize interest income on our debt investment in Biolam for financial reporting purposes. As of March 31, 2026, the cost of our debt investment in Biolam was $2.6 million and the fair value of such investment was $1.3 million.

Current wording

During the quarter ended September 30, 2024, we placed our debt investment in Biolam Group, or Biolam, on non-accrual status. As a result, under U.S. GAAP, we will not recognize interest income on our debt investment in Biolam for financial reporting purposes. As of June 30, 2026, the cost of our debt investment in Biolam was $2.5 million and the fair value of such investment was $1.3 million.

Previous wording

During the quarter ended March 31, 2024, we placed our first lien senior secured debt investment in Canadian Orthodontic Partners Corp., or Canadian Orthodontics, on non-accrual status. As a result, under U.S. GAAP, we will not recognize interest income on our first lien senior secured debt investment in Canadian Orthodontics for financial reporting purposes. As of March 31, 2026, the cost of our first lien senior secured debt investment in Canadian Orthodontics was $1.9 million and the fair value of such investment was $0.2 million.

Current wording

During the quarter ended March 31, 2024, we placed our first lien senior secured debt investment in Canadian Orthodontic Partners Corp., or Canadian Orthodontics, on non-accrual status. As a result, under U.S. GAAP, we will not recognize interest income on our first lien senior secured debt investment in Canadian Orthodontics for financial reporting purposes. As of June 30, 2026, the cost of our first lien senior secured debt investment in Canadian Orthodontics was $1.9 million and the fair value of such investment was $0.1 million.

Previous wording

During the quarter ended March 31, 2026, we placed our subordinated debt investment in Eurofins Digital Testing International LUX Holding SARL, or Eurofins, on non-accrual status. As a result, under U.S. GAAP, we will not recognize interest income on our subordinated debt investment in Eurofins for financial reporting purposes. As of March 31, 2026, the cost of our subordinated debt investment in Eurofins was $1.4 million and the fair value of such investment was nil.

Current wording

During the quarter ended March 31, 2026, we placed our subordinated debt investment in Eurofins Digital Testing International LUX Holding SARL, or Eurofins, on non-accrual status. As a result, under U.S. GAAP, we will not recognize interest income on our subordinated debt investment in Eurofins for financial reporting purposes. As of June 30, 2026, the cost of our subordinated debt investment in Eurofins was $1.5 million and the fair value of such investment was nil.

Previous wording

In connection with the Sierra Merger, we purchased our debt investments in RA Outdoors, LLC, or RA Outdoors. During the quarter ended September 30, 2025, we placed our debt investments in RA Outdoors on non-accrual status. As a result, under U.S. GAAP, we will not recognize interest income on our debt investments in RA Outdoors for financial reporting purposes. As of March 31, 2026, the cost of our debt investments in RA Outdoors was $16.4 million and the fair value of such investments was $10.2 million.

Current wording

In connection with the Sierra Merger, we purchased our debt investments in RA Outdoors, LLC, or RA Outdoors. During the quarter ended September 30, 2025, we placed our debt investments in RA Outdoors on non-accrual status. As a result, under U.S. GAAP, we will not recognize interest income on our debt investments in RA Outdoors for financial reporting purposes. As of June 30, 2026, the cost of our debt investments in RA Outdoors was $16.4 million and the fair value of such investments was $8.6 million.

Previous wording

In addition to our non-accrual assets, during the quarter ended September 30, 2024, we placed our first lien senior secured debt investment in A.T. Holdings II LTD, or A.T. Holdings, on non-accrual status only with respect to the PIK interest component of the loan. As of March 31, 2026, the cost of our debt investment in A.T. Holdings was $11.9 million, or 0.5% of the total cost of our portfolio, and the fair value of such investment was $7.4 million, or 0.3% of the total fair value of our portfolio.

Current wording

In addition to our non-accrual assets, during the quarter ended September 30, 2024, we placed our first lien senior secured debt investment in A.T. Holdings II LTD, or A.T. Holdings, on non-accrual status only with respect to the PIK interest component of the loan. As of June 30, 2026, the cost of our debt investment in A.T. Holdings was $11.9 million, or 0.5% of the total cost of our portfolio, and the fair value of such investment was $7.5 million, or 0.3% of the total fair value of our portfolio.

Previous wording

Comparison of the three months ended March 31, 2026 and March 31, 2025

Current wording

Comparison of the three and six months ended June 30, 2026 and June 30, 2025

Previous wording

Operating results for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

Operating results for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

The change in total investment income for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025 was primarily due to a decrease in the amount of our outstanding debt investments, decreased weighted average yield on the portfolio and decreased fee and other income, partially offset by increased dividends from portfolio companies and joint venture investments. The amount of our outstanding debt investments decreased from $2,218.0 million as of March 31, 2025 to $1,998.8 million as of March 31, 2026. In addition, the weighted average yield on the principal amount of our outstanding debt investments, other than non-accrual debt investments, decreased from 9.9% as of March 31, 2025 to 9.4% as of March 31, 2026. For the three months ended March 31, 2026, fee and other income was $2.7 million as compared to $3.6 million for the three months ended March 31, 2025. For the three months ended March 31, 2026, dividend income was $11.9 million as compared to $10.7 million for the three months ended March 31, 2025.

Current wording

The change in total investment income for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025 was primarily due to a decrease in the amount of our outstanding debt investments, decreased weighted average yield on the portfolio and decreased fee and other income. The amount of our outstanding debt investments decreased from $2,243.3 million as of June 30, 2025 to $2,078.3 million as of June 30, 2026. In addition, the weighted average yield on the principal amount of our outstanding debt investments, other than non-accrual debt investments, decreased from 9.8% as of June 30, 2025 to 9.4% as of June 30, 2026. For the three and six months ended June 30, 2026, fee and other income was $3.7 million and $6.4 million, respectively, as compared to $4.9 million and $8.5 million for the three and six months ended June 30, 2025, respectively.

Previous wording

Interest and other financing fees during the three months ended March 31, 2026 were attributable to borrowings under the February 2019 Credit Facility, the Series C Notes of the November Notes, the February Notes, the November 2026 Notes, the February 2029 Notes and the September 2028 Notes (each as defined below under “Liquidity and Capital Resources”). Interest and other financing fees during the three months ended March 31, 2025 were attributable to borrowings under the February 2019 Credit Facility, the August 2025 Notes (as defined below under “Liquidity and Capital Resources”), the Series B Notes and Series C Notes of the November Notes, the February Notes, the November 2026 Notes and the February 2029 Notes. The decrease in interest and other financing fees for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, was primarily attributed to lower weighted average borrowings outstanding and a lower weighted average interest rate on the February 2019 Credit Facility, partially offset by higher net unsecured debt outstanding as of March 31, 2026. For the three months ended March 31, 2026, the weighted average borrowings outstanding on the February 2019 Credit Facility was $211.7 million as compared to $410.1 million for the three months ended March 31, 2025. The weighted average interest rate on the February 2019 Credit Facility for the three months ended March 31, 2026 was 4.1% as compared to 5.9% for the three months ended March 31, 2025. For the three months ended March 31, 2026, the weighted average unsecured debt outstanding was $1,182.3 million as compared to $1,025.0 million for the three months ended March 31, 2025. The weighted average interest rate on the unsecured debt for the three months ended March 31, 2026 was 5.1% as compared to 4.9% for the three months ended March 31, 2025.

Current wording

The decrease in interest and other financing fees for the three and six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025, was primarily attributed to lower weighted average borrowings outstanding and a lower weighted average interest rate on the February 2019 Credit Facility, partially offset by higher net unsecured debt outstanding as of June 30, 2026. For the three and six months ended June 30, 2026, the weighted average borrowings outstanding on the February 2019 Credit Facility were $305.0 million and $259.9 million, respectively, as compared to $559.1 million and $485.1 million, for the three and six months ended June 30, 2025, respectively. The weighted average interest rate on the February 2019 Credit Facility for the three and six months ended June 30, 2026 was 4.8% and 4.5%, respectively, as compared to 5.8% and 5.9%, for the three and six months ended June 30, 2025, respectively. For the three and six months ended June 30, 2026, the weighted average unsecured debt outstanding was $1,132.5 million and $1,157.3 million, respectively, as compared to $1,025.0 million for both the three and six months ended June 30, 2025. The weighted average interest rate on the unsecured debt for both the three and six months ended June 30, 2026 was 5.1% as compared to 4.9% for both the three and six months ended June 30, 2025.

Previous wording

Under the terms of the Barings BDC Advisory Agreement, we pay Barings a base management fee (the “Base Management Fee”), quarterly in arrears on a calendar quarter basis. The Base Management Fee is calculated based on the average value of our gross assets, excluding cash and cash equivalents, at the end of the two most recently completed calendar quarters prior to the quarter for which such fees are being calculated. Base Management Fees for any partial month or quarter are appropriately pro-rated. See “Note 2. Agreements and Related Party Transactions” to our Unaudited Consolidated Financial Statements for additional information regarding the terms of the Barings BDC Advisory Agreement and the fee arrangements thereunder. For the three months ended March 31, 2026 and 2025, the amount of Base Management Fees incurred were approximately $8.3 million and $8.0 million, respectively.

Current wording

Under the terms of the Barings BDC Advisory Agreement, we pay Barings a base management fee (the “Base Management Fee”), quarterly in arrears on a calendar quarter basis. The Base Management Fee is calculated based on the average value of our gross assets, excluding cash and cash equivalents, at the end of the two most recently completed calendar quarters prior to the quarter for which such fees are being calculated. Base Management Fees for any partial month or quarter are appropriately pro-rated. See “Note 2. Agreements and Related Party Transactions” to our Unaudited Consolidated Financial Statements for additional information regarding the terms of the Barings BDC Advisory Agreement and the fee arrangements thereunder. For the three and six months ended June 30, 2026, the amount of Base Management Fees incurred were approximately $7.9 million and $16.2 million, respectively. For the three and six months ended June 30, 2025, the amount of Base Management Fees incurred were approximately $8.2 million and $16.2 million, respectively.

Previous wording

The increase in the Base Management Fees for the three months ended March 31, 2026 versus the three months ended March 31, 2025 is primarily related to the average value of gross assets increasing from $2,566.0 million as of the end of the two most recently completed calendar quarters prior to March 31, 2025 to $2,654.1 million as of the end of the two most recently completed calendar quarters prior to March 31, 2026. For both the three months ended March 31, 2026 and 2025, the Base Management Fee rate was 1.250%.

Current wording

The decrease in the Base Management Fees for the three months ended June 30, 2026 versus the three months ended June 30, 2025 is primarily related to the average value of gross assets decreasing from $2,621.7 million as of the end of the two most recently completed calendar quarters prior to June 30, 2025 to $2,537.0 million as of the end of the two most recently completed calendar quarters prior to June 30, 2026. For both the three and six months ended June 30, 2026 and 2025, the Base Management Fee rate was 1.250%.

Previous wording

Under the Barings BDC Advisory Agreement, we pay Barings an incentive fee (the “Incentive Fee”). A portion of the Incentive Fee is based on our income (the “Income-Based Fee”) and a portion is based on our capital gains (the “Capital Gains Fee”). The Income-Based Fee is determined and paid quarterly in arrears based on the amount by which (x) the aggregate pre- incentive fee net investment income in respect of the current calendar quarter and the eleven preceding calendar quarters beginning with the calendar quarter that commences on or after January 1, 2021, as the case may be (or the appropriate portion thereof in the case of any of our first eleven calendar quarters that commences on or after January 1, 2021) exceeds (y) the hurdle amount as calculated for the same period. See “Note 2. Agreements and Related Party Transactions” to our Unaudited Consolidated Financial Statements for additional information regarding the terms of the Barings BDC Advisory Agreement and the fee arrangements thereunder. For the three months ended March 31, 2026, the amount of Income-Based Fees incurred were $4.7 million as compared to $7.7 million for the three months ended March 31, 2025. The Income-Based Fee is subject to a cap (the “Incentive Fee Cap”). The Incentive Fee Cap in any quarter is an amount equal to (a) 20% of the Cumulative Pre-Incentive Fee Net Return during the relevant Trailing Twelve Quarters less (b) the aggregate Income-Based Fees that were paid to the Adviser in the preceding eleven calendar quarters (or portion thereof) comprising the relevant Trailing Twelve Quarters. See “Note 2. Agreements and Related Party Transactions” to our Unaudited Consolidated Financial Statements for additional information regarding the terms of the Incentive Fee Cap.

Current wording

Under the Barings BDC Advisory Agreement, we pay Barings an incentive fee (the “Incentive Fee”). A portion of the Incentive Fee is based on our income (the “Income-Based Fee”) and a portion is based on our capital gains (the “Capital Gains Fee”). The Income-Based Fee is determined and paid quarterly in arrears based on the amount by which (x) the aggregate pre-incentive fee net investment income in respect of the current calendar quarter and the eleven preceding calendar quarters beginning with the calendar quarter that commences on or after January 1, 2021, as the case may be (or the appropriate portion thereof in the case of any of our first eleven calendar quarters that commences on or after January 1, 2021) exceeds (y) the hurdle amount as calculated for the same period. See “Note 2. Agreements and Related Party Transactions” to our Unaudited Consolidated Financial Statements for additional information regarding the terms of the Barings BDC Advisory Agreement and the fee arrangements thereunder. For the three and six months ended June 30, 2026, the amount of Income-Based Fees incurred were $5.0 million and $9.7 million, respectively, as compared to $11.1 million and $18.9 million, for the three and six months ended June 30, 2025, respectively. The Income-Based Fee is subject to a cap (the “Incentive Fee Cap”). The Incentive Fee Cap in any quarter is an amount equal to (a) 20% of the Cumulative Pre-Incentive Fee Net Return during the relevant Trailing Twelve Quarters less (b) the aggregate Income-Based Fees that were paid to the Adviser in the preceding eleven calendar quarters (or portion thereof) comprising the relevant Trailing Twelve Quarters. See “Note 2. Agreements and Related Party Transactions” to our Unaudited Consolidated Financial Statements for additional information regarding the terms of the Incentive Fee Cap.

Previous wording

The incentive fee for both the three months ended March 31, 2026 and March 31, 2025, was limited to the Incentive Fee Cap. The Incentive Fee Cap for the three months ended March 31, 2026 was lower than the Incentive Fee Cap for the three months ended March 31, 2025 as a result of an increase in Cumulative Pre-Incentive Fee Net Return partially offset by a greater increase in incentive fees paid in the trailing twelve quarters (or portion thereof).

Current wording

The incentive fee for both the three and six months ended June 30, 2026 and June 30, 2025, was limited to the Incentive Fee Cap. The Incentive Fee Cap for the three and six months ended June 30, 2026 was lower than the Incentive Fee Cap for the three and six months ended June 30, 2025 as a result of an increase in Cumulative Pre-Incentive Fee Net Return partially offset by a greater increase in incentive fees paid in the trailing twelve quarters (or portion thereof).

Previous wording

We entered into the Administration Agreement with Barings in August 2018. Under the terms of the Administration Agreement, Barings performs (or oversees, or arranges for, the performance of) the administrative services necessary for our operations. We reimburse Barings for the costs and expenses incurred by it in performing its obligations and providing personnel and facilities under the Administration Agreement in an amount to be negotiated and mutually agreed to by us and Barings quarterly in arrears; provided that the agreed-upon quarterly expense amount will not exceed the amount of expenses that would otherwise be reimbursable by us under the Administration Agreement for the applicable quarterly period, and Barings will not be entitled to the recoupment of any amounts in excess of the agreed-upon quarterly expense amount. See “Note 2. Agreements and Related Party Transactions” to our Unaudited Consolidated Financial Statements for additional information regarding the Administration Agreement. For the three months ended March 31, 2026 and 2025, the amount of administration expenses incurred and invoiced by Barings for expenses was approximately $0.4 million and $0.3 million, respectively. In addition to expenses incurred under the Administration Agreement, general and administrative expenses include fees payable to the members of our Board for their service on the Board, directors’ and officers’ insurance costs, as well as legal and accounting expenses.

Current wording

We entered into the Administration Agreement with Barings in August 2018. Under the terms of the Administration Agreement, Barings performs (or oversees, or arranges for, the performance of) the administrative services necessary for our operations. We reimburse Barings for the costs and expenses incurred by it in performing its obligations and providing personnel and facilities under the Administration Agreement in an amount to be negotiated and mutually agreed to by us and Barings quarterly in arrears; provided that the agreed-upon quarterly expense amount will not exceed the amount of expenses that would otherwise be reimbursable by us under the Administration Agreement for the applicable quarterly period, and Barings will not be entitled to the recoupment of any amounts in excess of the agreed-upon quarterly expense amount. See “Note 2. Agreements and Related Party Transactions” to our Unaudited Consolidated Financial Statements for additional information regarding the Administration Agreement. For the three and six months ended June 30, 2026, the amount of administration expenses incurred and invoiced by Barings for expenses was approximately $0.3 million and $0.7 million, respectively. For the three and six months ended June 30, 2025, the amount of administration expenses incurred and invoiced by Barings for expenses was approximately $0.4 million and $0.7 million, respectively. In addition to expenses incurred under the Administration Agreement, general and administrative expenses include fees payable to the members of our Board for their service on the Board, directors’ and officers’ insurance costs, as well as legal and accounting expenses.

Previous wording

Net realized gains (losses) during the three months ended March 31, 2026 and 2025 were as follows:

Current wording

Net realized gains (losses) during the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

During the three months ended March 31, 2026, we recognized net realized losses totaling $10.8 million, which consisted primarily of a net loss on our investment portfolio of $8.2 million, a net loss on foreign currency transactions of $2.4 million and a net loss on forward currency contracts of $0.2 million. The net loss on our investment portfolio predominantly related to a $4.5 million loss on the restructuring of the investments in one portfolio company, a $6.9 million loss on the sale and exit of five Sierra CLO investments and a $1.1 million loss on the exit of one debt investment, partially offset by a gain of $3.6 million on the sale of equity investments in two portfolio companies. The net losses on these exits were predominantly reclassified from net unrealized depreciation and the $6.9 million loss on the Sierra CLO investments is covered by the Sierra Credit Support Agreement (as defined in “Note 2. Agreements and Related Party Transactions”) with Barings.

Current wording

During the three months ended June 30, 2026, we recognized net realized gains totaling $18.8 million, which consisted primarily of a gain on the termination of the Prior Sierra Credit Support Agreement (as defined in “Note 2. Agreements and Related Party Transactions”) with Barings of $22.6 million, a net gain on forward currency contracts of $3.0 million and a net gain on foreign currency transactions of $0.3 million, partially offset by a net loss on our investment portfolio of $7.1 million. The net loss on our investment portfolio predominantly related to a $7.2 million loss on the restructuring of two portfolio company investments and a $2.2 million loss on the sale and exit of one CLO investment acquired in the Sierra Merger, partially offset by a gain of $1.1 million on the sale of one equity investment, which were all primarily reclassified from net unrealized depreciation during the three months ended June 30, 2026. The $2.2 million loss on the CLO investment acquired in the Sierra Merger was covered by the Prior Sierra Credit Support Agreement with Barings. During the six months ended June 30, 2026, we recognized net realized gains totaling $8.0 million, which consisted primarily of a gain on the termination of the Prior Sierra Credit Support Agreement with Barings of $22.6 million and a net gain on forward currency contracts of $2.8 million, partially offset by a net loss on our investment portfolio of $15.3 million and a net loss on foreign currency transactions of $2.2 million. The net loss on our investment portfolio predominantly related to a $11.6 million loss on the restructuring of three portfolio company investments, a $9.1 million loss on the sale and exit of six CLO investments acquired in the Sierra Merger and a $1.1 million loss on the exit of one debt investment, partially offset by a gain of $4.7 million on the sale of equity investments in three portfolio companies. The net losses on these exits were predominantly reclassified from net unrealized depreciation and the $9.1 million loss on the CLO investments acquired in the Sierra Merger was covered by the Prior Sierra Credit Support Agreement with Barings.

Previous wording

During the three months ended March 31, 2025, we recognized net realized losses totaling $1.1 million, which consisted primarily of a net loss on our investment portfolio of $17.7 million, partially offset by a net gain on forward currency contracts of $15.2 million and a net gain on foreign currency transactions of $1.4 million. The net loss on our investment portfolio predominately related to a $9.8 million loss on the exit of two loan investments and a $7.3 million loss on the exit of one equity investment, which were all primarily reclassified from unrealized appreciation during the three months ended March 31, 2025.

Current wording

During the three months ended June 30, 2025, we recognized net realized losses totaling $15.2 million, which consisted primarily of a net loss on forward currency contracts of $14.3 million and a net loss on our investment portfolio of $11.1 million, partially offset by a gain on the termination of the MVC Credit Support Agreement (as defined in “Note 2. Agreements and Related Party Transactions”) with Barings of $9.4 million and a net gain on foreign currency transactions of $0.8 million. The net loss on our investment portfolio predominantly related to a $17.1 million loss on the exit of one loan investment and a $2.5 million loss on the restructuring of one investment, partially offset by a $5.3 million gain on the exit of three equity investments, and a $2.5 million gain on the exit of one of our royalty rights investments, which were all primarily reclassified from net unrealized depreciation during the three months ended June 30, 2025. During the six months ended June 30, 2025, we recognized net realized losses totaling $16.2 million, which consisted primarily of a net loss on our investment portfolio of $28.8 million, partially offset by a net gain on the termination of the MVC Credit Support Agreement of $9.4 million, a net gain on forward currency transactions of $2.2 million and a net gain on foreign currency contracts of $1.0 million. The net loss on our investment portfolio predominantly related to a $27.9 million loss on the exit of three loan investments, a $7.3 million loss on the exit of one equity investment, and a $2.5 million loss on the restructuring of one investment, partially offset by a $5.3 million gain on the exit of three equity investments and a $2.5 million gain on the exit of one of our royalty rights investments, which were all primarily reclassified from net unrealized depreciation during the six months ended June 30, 2025.

Previous wording

Net unrealized appreciation (depreciation) during the three months ended March 31, 2026 and 2025 was as follows:

Current wording

Net unrealized appreciation (depreciation) during the three and six months ended June 30, 2026 and 2025 was as follows:

Previous wording

During the three months ended March 31, 2026, we recorded net unrealized appreciation totaling $4.9 million, consisting of net unrealized appreciation reclassification adjustments of $7.4 million related to the net realized losses on the sales / exits of certain investments, net unrealized appreciation related to forward currency contracts of $5.5 million, unrealized appreciation of $5.3 million on the Sierra Credit Support Agreement with Barings, net unrealized appreciation related to foreign currency transactions of $4.1 million, and a deferred tax asset of $0.1 million, partially offset by net unrealized depreciation on our current portfolio of $17.5 million. The net unrealized depreciation on our current portfolio of $17.5 million was driven primarily by the credit or fundamental performance of investments of $8.7 million, the impact of foreign currency exchange rates on investments of $6.2 million and broad market moves for investments of $2.6 million.

Current wording

During the six months ended June 30, 2026, we recorded net unrealized depreciation totaling $24.5 million, consisting of net unrealized depreciation on our current portfolio of $32.4 million and unrealized depreciation of $16.1 million on the Prior Sierra Credit Support Agreement with Barings, partially offset by net unrealized appreciation reclassification adjustments of $16.3 million related to the net realized losses on the sales / exits of certain investments, net unrealized appreciation related to foreign currency transactions of $5.3 million and net unrealized appreciation related to forward currency contracts of $2.3 million. The net unrealized depreciation on our current portfolio of $32.4 million was driven primarily by the credit or fundamental performance of investments of $15.6 million, broad market moves for investments of $9.5 million and the impact of foreign currency exchange rates on investments of $7.3 million.

Previous wording

During the three months ended March 31, 2025, we recorded net unrealized appreciation totaling $7.3 million, consisting of net unrealized appreciation on our current portfolio of $17.0 million, net unrealized appreciation reclassification adjustments of $16.9 million related to the net realized losses on the sales / exits of certain investments, unrealized appreciation of $3.8 million on the MVC Credit Support Agreement (as defined in “Note 2. Agreements and Related Party Transactions”) with Barings, and unrealized appreciation of $0.6 million on the Sierra Credit Support Agreement with Barings, partially offset by net unrealized depreciation related to forward currency contracts of $22.3 million, net unrealized depreciation related to foreign currency transactions of $7.8 million and deferred taxes of $1.0 million. The net unrealized appreciation on our current portfolio of $17.0 million was driven primarily by the impact of foreign currency exchange rates on investments of $14.8 million and broad market moves for investments of $7.9 million, partially offset by the credit or fundamental performance of investments of $5.7 million.

Current wording

During the six months ended June 30, 2025, we recorded net unrealized appreciation totaling $13.2 million, consisting of net unrealized appreciation on our current portfolio of $31.7 million, net unrealized appreciation reclassification adjustments of $29.8 million related to the net realized losses on the sales / exits of certain investments, unrealized appreciation of $7.0 million on the Prior Sierra Credit Support Agreement with Barings, partially offset by net unrealized depreciation related to forward currency contracts of $25.7 million, net unrealized depreciation related to foreign currency transactions of $23.0 million, unrealized depreciation of $5.6 million on the MVC Credit Support Agreement with Barings and deferred taxes of $1.0 million. The net unrealized appreciation on our current portfolio of $31.7 million was driven primarily by the impact of foreign currency exchange rates on investments of $49.0 million and broad market moves for investments of $1.3 million, partially offset by the credit or fundamental performance of investments of $18.6 million.

Previous wording

For the three months ended March 31, 2026, we experienced a net increase in cash in the amount of $28.9 million. During that period, our operating activities provided $68.0 million in cash, with proceeds from sales or repayments of portfolio investments totaling $181.1 million and other cash collections from investments exceeding purchases of portfolio investments of $108.7 million. In addition, our financing activities used net cash of $39.1 million, consisting of the repayment of the $80.0 million Series D Notes (as defined below) and dividends paid in the amount of $27.2 million, partially offset by net borrowings under the February 2019 Credit Facility of $68.2 million. As of March 31, 2026, we had $95.7 million of cash and foreign currencies on hand, including $15.8 million of restricted cash.

Current wording

For the six months ended June 30, 2026, we experienced a net increase in cash in the amount of $3.1 million. During that period, our operating activities provided $83.7 million in cash, with proceeds from sales or repayments of portfolio investments totaling $342.3 million and other cash collections from investments exceeding purchases of portfolio investments of $368.9 million. In addition, our financing activities used net cash of $80.6 million, consisting of the repayment of the $80.0 million Series D Notes (as defined below) and dividends paid in the amount of $54.4 million, partially offset by net borrowings under the February 2019 Credit Facility of $53.8 million. As of June 30, 2026, we had $69.9 million of cash and foreign currencies on hand, including $18.3 million of restricted cash.

Previous wording

For the three months ended March 31, 2025, we experienced a net increase in cash in the amount of $9.3 million. During that period, our operating activities used $7.8 million in cash, consisting primarily of purchases of portfolio investments of $167.2 million, partially offset by proceeds from sales or repayments of portfolio investments totaling $122.4 million. In addition, our financing activities provided net cash of $17.0 million, consisting of net borrowings under the February 2019 Credit Facility of $51.2 million, partially offset by dividends paid in the amount of $32.7 million and share repurchases of $1.5 million. As of March 31, 2025, we had $100.6 million of cash and foreign currencies on hand, including $7.3 million of restricted cash.

Current wording

For the six months ended June 30, 2025, we experienced a net decrease in cash in the amount of $42.1 million. During that period, our operating activities used $60.5 million in cash, consisting primarily of purchases of portfolio investments of $409.2 million, partially offset by proceeds from sales or repayments of portfolio investments totaling $274.6 million. In addition, our financing activities provided net cash of $18.4 million, consisting of net borrowings under the February 2019 Credit Facility of $86.0 million, partially offset by dividends paid in the amount of $65.3 million and share repurchases of $2.3 million. As of June 30, 2025, we had $49.3 million of cash and foreign currencies on hand, including $4.7 million of restricted cash.

Previous wording

As of March 31, 2026, we were in compliance with all covenants under the February 2019 Credit Facility and had U.S. dollar borrowings of $130.0 million outstanding under the February 2019 Credit Facility with a weighted average interest rate of 6.179% (one month SOFR of 3.671%), borrowings denominated in Canadian dollars of C$5.0 million ($3.6 million U.S. dollars) with an interest rate of 4.445% (one month CORRA of 2.570%) and borrowings denominated in Euros of €138.1 million ($159.1 million U.S. dollars) with a weighted average interest rate of 3.851% (one month EURIBOR of 1.976%). The borrowings denominated in foreign currencies were translated into U.S. dollars based on the spot rate at the relevant balance sheet date. 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 our Unaudited Consolidated Statements of Operations.

Current wording

As of June 30, 2026, we were in compliance with all covenants under the February 2019 Credit Facility and had U.S. dollar borrowings of $122.5 million outstanding under the February 2019 Credit Facility with a weighted average interest rate of 5.594% (one month SOFR of 3.619%), borrowings denominated in Canadian dollars of C$2.0 million ($1.4 million U.S. dollars) with an interest rate of 4.451% (one month CORRA of 2.576%) and borrowings denominated in Euros of €134.1 million ($153.3 million U.S. dollars) with a weighted average interest rate of 4.056% (one month EURIBOR of 2.181%). The borrowings denominated in foreign currencies were translated into U.S. dollars based on the spot rate at the relevant balance sheet date. 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 our Unaudited Consolidated Statements of Operations.

Previous wording

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. As of March 31, 2026, the total fair value of the borrowings outstanding under the February 2019 Credit Facility was $292.7 million. See “Note 5. Borrowings — February 2019 Credit Facility” to our Unaudited Consolidated Financial Statements for additional information regarding the February 2019 Credit Facility.

Current wording

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. As of June 30, 2026, the total fair value of the borrowings outstanding under the February 2019 Credit Facility was $277.2 million. See “Note 5. Borrowings — February 2019 Credit Facility” to our Unaudited Consolidated Financial Statements for additional information regarding the February 2019 Credit Facility.

Previous wording

On February 25, 2021, we entered into a Note Purchase Agreement (the “February 2021 NPA”) governing the issuance of (1) $80.0 million in aggregate principal amount of Series D senior unsecured notes due February 26, 2026 (the “Series D Notes”) with a fixed interest rate of 3.41% per year and (2) $70.0 million in aggregate principal amount of Series E senior unsecured notes due February 26, 2028 (the “Series E Notes” and, collectively with the Series D Notes, the “February Notes”) with a fixed interest rate of 4.06% per year, in each case, to qualified institutional investors in a private placement. Each stated interest rate is subject to a step up of (x) 0.75% per year, to the extent the applicable February Notes do not satisfy certain investment grade rating conditions and/or (y) 1.50% per year, to the extent the ratio of our secured debt to total assets exceeds specified thresholds, measured as of each fiscal quarter end. The February Notes were delivered and paid for on February 26, 2021.

Current wording

On November 4, 2020, we entered into a Note Purchase Agreement (the “November 2020 NPA”) governing the issuance of (1) $62.5 million in aggregate principal amount of Series B senior unsecured notes due November 2025 (the “Series B Notes”) with a fixed interest rate of 4.25% per year and (2) $112.5 million in aggregate principal amount of Series C senior unsecured notes due November 2027 (the “Series C Notes,” and, collectively with the Series B Notes, the “November Notes”) with a fixed interest rate of 4.75% per year, in each case, to qualified institutional investors in a private placement. Each stated interest rate is subject to a step up of (x) 0.75% per year, to the extent the applicable November Notes do not satisfy certain investment grade conditions and/or (y) 1.50% per year, to the extent the ratio of our secured debt to total assets exceeds specified thresholds, measured as of each fiscal quarter end. The November Notes were delivered and paid for on November 5, 2020.

Previous wording

As of March 31, 2026, the fair value of the outstanding Series C Notes was $109.0 million. The fair value determinations of the Series C Notes were based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.

Current wording

As of June 30, 2026, the fair value of the outstanding Series C Notes was $110.2 million. The fair value determinations of the Series C Notes were based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.

Previous wording

Notes”) with a fixed interest rate of 4.25% per year and (2) $112.5 million in aggregate principal amount of Series C senior unsecured notes due November 2027 (the “Series C Notes,” and, collectively with the Series B Notes, the “November Notes”) with a fixed interest rate of 4.75% per year, in each case, to qualified institutional investors in a private placement. Each stated interest rate is subject to a step up of (x) 0.75% per year, to the extent the applicable November Notes do not satisfy certain investment grade conditions and/or (y) 1.50% per year, to the extent the ratio of our secured debt to total assets exceeds specified thresholds, measured as of each fiscal quarter end. The November Notes were delivered and paid for on November 5, 2020.

Current wording

with a fixed interest rate of 4.06% per year, in each case, to qualified institutional investors in a private placement. Each stated interest rate is subject to a step up of (x) 0.75% per year, to the extent the applicable February Notes do not satisfy certain investment grade rating conditions and/or (y) 1.50% per year, to the extent the ratio of our secured debt to total assets exceeds specified thresholds, measured as of each fiscal quarter end. The February Notes were delivered and paid for on February 26, 2021.

Previous wording

As of March 31, 2026, the fair value of the outstanding Series E Notes was $66.8 million. The fair value determinations of the Series E Notes were based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.

Current wording

As of June 30, 2026, the fair value of the outstanding Series E Notes was $67.2 million. The fair value determinations of the Series E Notes were based on a market yield approach and current interest rates, which are Level 3 inputs to the market yield model.