Kayne Anderson BDC secures $200 million in senior unsecured notes

Published 09/09/2025, 21:14
Kayne Anderson BDC secures $200 million in senior unsecured notes

CHICAGO - Kayne Anderson BDC, Inc. (NYSE:KBDC), a business development company with a market capitalization of $1.09 billion and currently trading at $15.28, announced Tuesday it has closed a $200 million private placement of senior unsecured notes, scheduled for funding on October 15. According to InvestingPro data, the company maintains a significant 10.48% dividend yield and generally trades with low price volatility.

The offering consists of three tranches: $40 million in floating rate Series C Notes due June 2028 with an interest rate of SOFR plus 2.32%; $60 million in 5.80% Series D Notes due June 2028; and $100 million in 6.15% Series E Notes due October 2030.

The business development company has entered into interest rate swap agreements for the Series D and Series E Notes to align the debt structure with its predominantly floating rate loan portfolio. Under these agreements, KBDC will receive the fixed interest rates while paying floating rates of SOFR plus 2.37% on the Series D Notes and SOFR plus 2.6565% on the Series E Notes.

Proceeds from the offering will be used to refinance existing debt and for general corporate purposes, according to the company’s press release statement.

The notes will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an applicable exemption.

Kayne Anderson BDC is externally managed by KA Credit Advisors, LLC, a subsidiary of Kayne Anderson Capital Advisors, L.P. The company primarily invests in first lien senior secured loans to middle market companies, with a secondary focus on unitranche and split-lien loans. With analyst price targets ranging from $16 to $17 and its next earnings report scheduled for November 12, 2025, investors can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports.

In other recent news, Kayne Anderson BDC, Inc. announced a $200 million private placement of senior unsecured notes. This transaction, expected to close around September 9, includes various series of notes with differing interest rates and maturities. Specifically, it comprises $40 million of floating rate Series C Notes due June 2028, $60 million of 5.80% fixed rate Series D Notes due June 2028, and $100 million of 6.15% fixed rate Series E Notes due October 2030. Additionally, Kayne Anderson BDC has invested $126 million in SG Credit Partners, Inc., enhancing its portfolio with a focus on the lower middle market. This investment includes an $80 million term loan facility, a $34 million delayed draw term loan facility, and a $12 million common equity investment. As a result, Kayne Anderson BDC will hold a significant minority stake in SG Credit. These developments reflect Kayne Anderson BDC’s ongoing strategic financial maneuvers.

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