Barings BDC, Inc. (NYSE:BBDC) Q4 2023 Earnings Call Transcript

And so as we think about where we want to be, where we will operate, we have no change in our guidance to the 0.9 to 1.25 times. But I do think that, to your point, is there capacity when we see opportunity to invest to perhaps increase that leverage ratio? The answer to that, I think, is absolutely. I want to make sure that Elizabeth has a chance to maybe augment any of those comments.

Elizabeth Murray: Yeah. What I would add, Casey, when we look long-term at our leverage, we’re trending between 1.1 and 1.2 times and I think you’re going to continue to see that trend. But we also want to have that flexibility if we do see investment opportunities to be able to take them. And then we also balance that with share repurchases. We don’t ever want to be in a position where leverage is so high that we aren’t able to repurchase shares. So we balance all three of them.

Casey Alexander: Well, fair enough. Thank you for that Elizabeth, because I do think that where the stock closed last night at 0.81 times shareholders would like you to see you continue with the share repurchases. My last question, and you may want to pass on this, but I’m going to throw it out there anyway. The core position, equipment leasing position was actually significantly larger than just what you held on balance sheet at Barings. It was probably close to double that size. So I’m just wondering, are you guys managing the equity position in coordination with the rest of the platform? Or are you guys managing your position independent of position that’s held at the rest of the Barings’ platform? And that will be my last question. Thank you.

Bryan High: Yeah, Casey, I appreciate the question. It’s Bryan again. I don’t think we’re going to comment on the broader Barings platform strategy. So I will take you up on passing on that question, but —

Casey Alexander: I’m not surprised, but it was worth a shot. It cost me nothing to ask the question.

Bryan High: No worries.

Casey Alexander: It’s all right. Thanks, Bryan.

Operator: Thank you. At this time, I’d like to turn the floor back over to Mr. Lloyd for closing comments.

Eric Lloyd: I just really want to thank everybody for dialing in and your interest in us, and we look forward to following-up with you and putting together another great quarter for you. Thanks very much.

Operator: Ladies and gentlemen, thank you for your participation. This concludes today’s event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.