Kayne Anderson BDC Declares $0.40 Dividend, Expects to Complete Centerline Restructuring

Kayne Anderson BDC (KBDC) declared a $0.40-per-share fourth-quarter dividend as it expects to complete a Centerline restructuring that could return some non-accrual investments to accrual status.

On a Nov. 6 earnings call, Co-CEO Ken Leonard said, “We expect to complete the Centerline restructuring in the fourth quarter.” Leonard put KBDC’s Centerline exposure at about $28 million, part of the company’s $78.4 million in non-accrual investments at fair value as of Sept. 30. Management expects a sizable portion of that exposure to return to accrual status after the restructuring.

KBDC’s net investment income for the third quarter was $30.2 million, or $0.46 per share, above the $0.40-per-share dividend declared for the following quarter. The results cover the three months ended Sept. 30. Net asset value was $15.71 per share at quarter-end, down from $16.00 at June 30.

At Sept. 30, KBDC valued its non-accrual investments at $78.413 million, representing 3.6% of debt investments. At June 30, the balance was $59.130 million at fair value, or 2.7% of debt investments. Both the dollar balance and its share of debt investments were higher at the end of the third quarter.

Kayne Anderson BDC is a business development company focused on first-lien senior secured loans to middle-market borrowers. It also invests in unitranche and split-lien loans. Its income-producing portfolio had an average spread of 587 basis points over the Secured Overnight Financing Rate (SOFR).

Leonard said the board had not approved a 2027 dividend or issued guidance for one at the time of the call. He expressed confidence in KBDC’s ability to maintain its base dividend going forward, while leaving any 2027 decision unannounced.

The board approved the fourth-quarter dividend Nov. 4. Shareholders of record Dec. 31, 2026, are scheduled to receive payment Jan. 19, 2027.