Kayne Anderson BDC Declares $0.40 Quarterly Dividend, Maintains 2026 Payout Outlook
Kayne Anderson BDC, Inc. (NYSE: KBDC), a business development company focused on middle-market direct lending, declared a regular dividend of $0.40 per share for the first quarter of 2026. The board signaled confidence in maintaining the $0.40 base dividend throughout the year.
Kayne Anderson BDC, Inc. (NYSE: KBDC), a business development company focused on middle-market direct lending, declared a regular dividend of $0.40 per share for the first quarter of 2026. The dividend will be paid on April 16, 2026 to stockholders of record as of March 31, 2026. Read more dividend announcements.
The company's board declared the dividend on February 12, 2026. Management indicated it expects to maintain the $0.40 base dividend for all of 2026 based on its current market view and portfolio positioning.
| Dividend Details | Information |
|---|---|
| Amount | $0.40 per share |
| Frequency | Quarterly |
| Record Date | March 31, 2026 |
| Payment Date | April 16, 2026 |
Fourth Quarter 2025 Financial Performance
The Chicago-based BDC reported net investment income of $30.1 million, or $0.44 per share, for the fourth quarter ended December 31, 2025. Net asset value stood at $16.32 per share, down $0.02 from $16.34 at September 30, 2025.
The modest NAV decline reflected realized and unrealized losses of $0.12 per share, partially offset by net investment income exceeding distributions by $0.04 per share and accretive share repurchases contributing $0.06 per share.
New private credit and equity co-investment commitments totaled $112.8 million during the quarter, with fundings of $99.3 million and repayments of $131.7 million. The result was a net decrease of $32.4 million in funded private credit and equity investments. The company also saw sales and repayments of broadly syndicated loans of $19.8 million.
New floating-rate loan originations averaged 529 basis points over SOFR during the quarter. Co-CEO Ken Leonard said the spread premium relative to the upper middle market reflected the company's value lending strategy.
Portfolio and Balance Sheet
As of December 31, 2025, the investment portfolio stood at $2.20 billion at fair value, down from $2.26 billion at September 30, 2025. Total assets were $2.29 billion.
The company had $1.13 billion in total debt outstanding at principal, consisting of $275 million in senior unsecured notes and $855 million borrowed under credit facilities. Cash and cash equivalents, including money market fund investments, totaled $43.4 million.
The debt-to-equity ratio was 1.02x with an asset coverage ratio of 198%. The company targets a debt-to-equity ratio of 1.0x to 1.25x, equivalent to asset coverage of 200% to 180%.
Undrawn commitments available on credit facilities totaled $545 million as of quarter-end, subject to borrowing base restrictions and other conditions.
Recent Capital Actions
On February 20, 2026, the company amended its revolving funding facility, extending the final maturity date to February 20, 2031 and reducing the interest rate on borrowings from daily SOFR plus 2.15% to daily SOFR plus 1.95% per annum.
From January 1, 2026 to February 20, 2026, the company repurchased 1,020,586 shares of common stock at an average price of $14.25 per share for a total of $14.5 million. As of February 20, 2026, $45.4 million remained available for repurchase under the company's amended 10b5-1 plan.
Co-CEO Doug Goodwillie noted the company maintains the lowest software exposure in the BDC space at approximately 2% of the portfolio, positioning it favorably amid ongoing market volatility. The investment strategy focuses on lending at conservative leverage multiples to borrowers in stable industries.