Ladies and gentlemen, hello and welcome to Kayne Anderson BDC, Inc. First Quarter 2025 Earnings Call. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. And it is now my pleasure to turn the conference over to Terry Hart, Chief Financial Officer of KBDC.

Good morning and welcome to Kayne Anderson BDC Inc's first quarter 2025 earnings call. Today I'm joined by Doug Goodwillie and Ken Leonard, co-CEOs of KBDC and Lee Feingold, our Private Credit Managing Director. Following our prepared remarks, we will be available to take your questions. Today's call may include forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed there on. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates, and projections about the company, our current and prospective portfolio investments, our industry, our beliefs, and our opinions, and our assumptions. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. Actual results may differ materially from those expressed or forecasted in the forward-looking statements. We ask that you refer to the company's most recent filings with the SEC for important risk factors. Any forward-looking statements made today do not guarantee future performance, and undue reliance should not be placed on them. The company assumes no obligation to update any forward-looking statements at any time. Our earnings release, 10-Q, and supplemental earnings presentation are available on the financial section of our website at kaynebdc.com. Now I'd like to turn the call over to Doug Goodwillie.

Thank you, Terry. And thank you, everyone, for joining us on the call today. I would like to start with an overview of our financial results before discussing investment activity during our strongest first quarter of deployment since inception. I will then turn to our portfolio makeup and performance. And finally, I will close out with some thoughts on current market conditions, including the constantly evolving market backdrop, or turning it over to Terry Hart to discuss KBDC's financial results in more detail. During the first quarter of 2025, we generated net investment income of $0.40 per share and net income of $0.31 per share. During the quarter, we distributed our $0.40 per share regular dividend and $0.10 per share special dividend. As of March 31st, our estimated spillover of net investment income was $0.22 per share. In February, we also had our second of three lockup releases, the last of which will occur on May 21st. Turning to our private middle market investment activity, as highlighted in our last earnings call, our first quarter actively benefited from a robust pipeline and supportive market conditions, highlighting our ability to originate high quality deal flow. We made 340 million of total commitments across 16 different businesses during the period, of which 264 million was funded. This number is 113% increase from the 160 million of commitments made in the first quarter of 2024. We also thought it was important to highlight that we were able to maintain an average spread over SOFR of 5.49% and a weighted average net senior leverage ratio of 4 times. When we add in our existing unfunded commitments funded during the quarter, we invested $294 million. Again, this compares favorably to the first quarter of 2024 where gross fundings were $148 million. Repayment activity during the…

Thanks, Doug. Let's first review results of operations. During the first quarter, we earned net income per share of $0.31 and net investment income per share was $0.40 compared to $0.48 in the prior quarter. The decline in net investment income was mainly due to the expiration of the incentive management fee waiver. As a reminder, in conjunction with our IPO, Kayne Anderson instituted a 25 basis point fee waiver of our base management fee through May 23rd, 2025, and a full waiver of our income based incentive fees that expired on December 31st, 2024. Total investment income for the first quarter was $55.2 million as compared to $56.3 million in the prior quarter. The decrease to investment income was primarily driven by the reduction to SOFR and the $0.6 million impact of placing Siegel Egg on non-accrual status during the quarter. These reductions were partially offset by income generated from net additions to the portfolio during the first quarter. It's worth noting that the majority of the decrease to our portfolio yield was related to lower reference rates and that only 0.6% of our interest income for the quarter related to PIK interest. Additionally, during the first quarter, we had approximately $0.9 million of accelerated amortization of OID as a result of realization activity. Total expenses for the first quarter were $26.5 million compared to $22.3 million for the prior quarter. The increase was primarily related to the expiration of the incentive fee waiver, a $4.5 million impact. During the quarter, our incentive fee was reduced by the 12th quarter look back incentive fee cap. During the first quarter, we had a realized gain of $0.6 million on the sale of an equity co-investment, and we had net unrealized losses on the portfolio of $6.5 million compared to unrealized…

Thank you. And we will now begin the question-and-answer session. [Operator Instructions] And our first question comes from Doug Harter with UBS. Your line is open.

Thanks. So hoping you could just give a little more clarity, comfort around, you know, kind of that timeline you gave to achieve your target leverage, you know, kind of what you're seeing in the pipeline today, you know, and kind of how those spreads on those deals you're looking at today might compare to kind of three months or six months ago?

Yeah, thanks Doug. This is Ken. As mentioned, Q1 was very strong origination quarter for us. Our new investment spreads were around [549] (ph) over SOFR, which is a pretty nice premium to the market at large. The markets obviously pulled back to some degree in the second quarter in terms of deal activity, just given the certain macro environment that we're all seeing in terms of what's gone on with tariffs in the administration. But we still expect Q2 to be net positive in terms of portfolio growth. To achieve that growth, we're not having to change our investment parameters. We're still seeing good opportunities in the 500 to 600 over SOFR, and we're continuing to see closing fees and spreads that are indicative of what we've been able to achieve over the last few quarters. So I'd say we're reasonably optimistic right now about being able to achieve our target, as we've said, to get to that target leverage over the next two quarters.

Great. Thank you.

[Operator Instructions] And with no additional questions, I will now turn the conference back over to Mr. Ken Leonard for closing remarks.

Great, thank you, operator. I want to thank everyone for their participation today and support over the last year as we approach our one-year anniversary, next week of being a public company. We're very proud of what KBDC has achieved and the market position we've earned as a value-oriented risk-reward driven company. We remain excited and opportunistic about the remainder of 2025 and we look forward to sharing our continued progress on future calls. Thank you very much.

And ladies and gentlemen, this concludes today's call and we thank you for your participation. You may now disconnect.