Kayne Anderson BDC reports lower net investment income
Net asset value per share fell to $16.00 as of June 30, 2026, according to the company's latest results.
Kayne Anderson BDC (KBDC) reported net investment income of $27.5 million, or $0.42 a share, for the second quarter of 2026.
The result represents a decrease from the $28.9 million, or $0.43 a share, recorded in the first quarter of 2026. Total investment income fell to $55.7 million from $57.3 million in the prior quarter, due to the impact of American Soccer Company being on non-accrual and the absence of catch-up PIK interest from Arborworks Acquisition.
Net asset value per share decreased to $16.00 as of June 30, 2026, from $16.23 as of March 31, 2026. The decline was driven by $0.26 in realized and unrealized losses, though these were partially offset by $0.02 in excess net investment income and $0.01 from accretive share repurchases.
Realized losses rose to $12.2 million in the second quarter from approximately $10,000 in the first quarter. The liquidation of Sundance Holdings Group, LLC, which resulted in a $9.4 million loss, was the primary driver. Non-accrual investments as a percentage of debt investments at fair value rose to 2.7% from 2.5% in the prior quarter.
Kayne Anderson BDC increased its gross new investment commitments to $138.7 million in the second quarter, up from $92.5 million in the first quarter. New floating rate originations were priced at SOFR plus 566 basis points, which was 17 basis points wider than the prior quarter. The weighted average yield on debt investments, excluding non-accruals, rose slightly to 10.2% from 10.1%.
The company completely exited its broadly syndicated loan portfolio during the quarter, selling or repaying the remaining $29.8 million. PIK income as a percentage of total interest income decreased to 4.5% from 7.5% in the first quarter.
The debt-to-equity ratio increased to 1.17x as of June 30, 2026, compared to 1.05x as of March 31, 2026.