Kayne Anderson BDC, Inc.

Previous wording

The Advisor executes on our investment objective by (1) accessing the established loan sourcing channels developed by KAPC, which includes an extensive network of private equity firms, other middle market lenders, financial advisors, intermediaries and management teams, (2) selecting investments within our middle market company focus, (3) implementing KAPC’s underwriting process and (4) drawing upon its experience and resources and the broader Kayne Anderson network. KAPC was established in 2011 and manages (directly and through affiliates) assets under management (“AUM”) of approximately $7.6 billion related to middle market private credit as of June 30, 2026.

Current wording

The Advisor executes on our investment objective by (1) accessing the established loan sourcing channels developed by KAPC, which includes an extensive network of private equity firms, other middle market lenders, financial advisors, intermediaries and management teams, (2) selecting investments within our middle market company focus, (3) implementing KAPC’s underwriting process and (4) drawing upon its experience and resources and the broader Kayne Anderson network. KAPC was established in 2011 and manages (directly and through affiliates) assets under management (“AUM”) of approximately $7.5 billion related to middle market private credit as of September 30, 2026.

Previous wording

On July 16, 2026, we paid a regular dividend of $0.40 per share to each common stockholder of record as of June 30, 2026. The total dividend was $26.5 million, and, of this amount, $0.6 million was DRIP which was fulfilled through open market purchases of common stock.

Current wording

On October 16, 2026, we paid a regular dividend of $0.40 per share to each common stockholder of record as of September 30, 2026 for a total dividend of $26.4 million.

Previous wording

From July 1, 2026 to August 5, 2026, our agent repurchased 178,752 shares of common stock at an average price of $13.67 per share for a total amount of $2.4 million. As of August 5, 2026, $95.8 million remains for repurchase under our current 10b5-1 Plan.

Current wording

From October 1, 2026 to October 29, 2026, our agent repurchased 146,242 shares of common stock at an average price of $12.60 per share for a total amount of $1.8 million. As of October 29, 2026, $92.8 million remains for repurchase under our current 10b5-1 Plan.

Previous wording

As of June 30, 2026, we had investments in 104 portfolio companies with an aggregate fair value of approximately $2,267 million, and unfunded commitments to these portfolio companies of $293 million, and our portfolio consisted of 92.8% first lien senior secured loans, 5.3% subordinated debt and 1.9% equity investments. As of June 30, 2026, the weighted average remaining term of our debt investments was 2.9 years based on principal amount.

Current wording

As of September 30, 2026, we had investments in 100 portfolio companies with an aggregate fair value of approximately $2.2 billion, and unfunded commitments to these portfolio companies of $281 million, and our portfolio consisted of 92.5% first lien senior secured loans, 5.4% subordinated debt and 2.1% equity investments. As of September 30, 2026, the weighted average remaining term of our debt investments was 2.8 years based on principal amount.

Previous wording

As of June 30, 2026, 95.3% of our debt investments, based on principal amount, had floating interest rates. Our weighted average yields for debt investments were as follows:

Current wording

As of September 30, 2026, 95.1% of our debt investments, based on principal amount, had floating interest rates. Our weighted average yields for debt investments were as follows:

Previous wording

As of June 30, 2026, our portfolio was invested across 26 different industries (Global Industry Classification “GICS”, Level 3 – Industry). The largest industries in our portfolio as of June 30, 2026 were Health Care Providers & Services, Commercial Services & Supplies, Distributors and Food Products, which represented, as a percentage of our portfolio of long-term investments, 13.2%, 11.7%, 10.4% and 9.9%, respectively, based on fair value. We are generalist investors and the mix of industries represented by our portfolio companies will vary over time.

Current wording

As of September 30, 2026, our portfolio was invested across 25 different industries (Global Industry Classification “GICS”, Level 3 – Industry). The largest industries in our portfolio as of September 30, 2026 were Health Care Providers & Services, Commercial Services & Supplies, Distributors and Food Products, which represented, as a percentage of our portfolio of long-term investments, 13.5%, 11.4%, 11.0% and 10.3%, respectively, based on fair value. We are generalist investors and the mix of industries represented by our portfolio companies will vary over time.

Previous wording

As of June 30, 2026, our average position size based on total investment commitments (at the portfolio company level) was $25.2 million.

Current wording

As of September 30, 2026, our average position size based on total investment commitments (at the portfolio company level) was $25.9 million.

Previous wording

As of June 30, 2026, the weighted average and median last twelve months (“LTM”) EBITDA of our portfolio companies were $53.7 million and $35.4 million, respectively, based on fair value 1,2

Current wording

As of September 30, 2026, the weighted average and median last twelve months (“LTM”) EBITDA of our portfolio companies were $57.5 million and $38.0 million, respectively, based on fair value 1,2

Previous wording

As of June 30, 2026, we had debt investments on non-accrual status, which represented 2.7% and 4.5% of total debt investments at fair value and cost, respectively.

Current wording

As of September 30, 2026, we had debt investments on non-accrual status, which represented 3.6% and 5.4% of total debt investments at fair value and cost, respectively.

Previous wording

As of June 30, 2026, our portfolio companies’ weighted average leverage ratios and weighted average interest coverage ratios (the calculations of which are based on the most recent quarter end or latest available information from the portfolio companies) were 4.5x and 2.4x, respectively, based on fair value 1,2

Current wording

As of September 30, 2026, our portfolio companies’ weighted average leverage ratios and weighted average interest coverage ratios (the calculations of which are based on the most recent quarter end or latest available information from the portfolio companies) were 4.6x and 2.4x, respectively, based on fair value 1,2

Previous wording

As of June 30, 2026, the percentage of our debt investments including at least one financial maintenance covenant was 100.0% based on fair value 1,2

Current wording

As of September 30, 2026, the percentage of our debt investments including at least one financial maintenance covenant was 98.2% based on fair value 1,2

Previous wording

Excludes investments on watch list, which represent 5.4% of the total fair value of debt investments as of June 30, 2026.

Current wording

Excludes debt investments on watch list, which represent 5.9% of the total fair value of debt investments as of September 30, 2026.

Previous wording

Excludes opportunistic debt investments of BC CS 2, L.P. (Cuisine Solutions, Inc.), SGCP Partners, Inc. (SG Credit), M2S Group Intermediate Holdings, Inc. and Texas Coffee Holdco LLC, which represent 7.6% of the total fair value of debt investments as of June 30, 2026.

Current wording

Excludes opportunistic debt investments of BC CS 2, L.P. (Cuisine Solutions, Inc.) and SGCP Partners, Inc. (SG Credit), which represent 5.5% of the total fair value of debt investments as of September 30, 2026.

Previous wording

Based on the rate in effect at June 30, 2026 per our Consolidated Schedule of Investments for new debt commitments entered into during the quarter.

Current wording

Based on the rate in effect at September 30, 2026 per our Consolidated Schedule of Investments for new income- producing debt commitments entered into during the quarter.

Previous wording

For the three and six months ended June 30, 2026 and 2025, our total investment income was derived from our portfolio of investments.

Current wording

For the three and nine months ended September 30, 2026 and 2025, our total investment income was derived from our portfolio of investments.

Previous wording

The following table represents the operating results for the three and six months ended June 30, 2026 and 2025.

Current wording

The following table represents the operating results for the three and nine months ended September 30, 2026 and 2025.

Previous wording

Investment income for the three and six months ended June 30, 2026, totaled $55.7 million and $113.0 million, respectively, and consisted primarily of interest income on our debt investments. For the three and six months ended June 30, 2026, we had $2.5 million and $6.8 million, respectively, of PIK interest included in interest income. Additionally, for the three and six months ended June 30, 2026, $0.3 million and $0.9 million, respectively, of non-recurring interest income (e.g., prepayment premiums and accelerated accretion of upfront loan origination fees from unscheduled paydowns, and amendment fees that are earned at closing) was included in interest income. For the six months ended June 30, 2026, $2.2 million of the $6.8 million, relates to PIK interest income recognized on our debt investments in Arborworks Acquisition, LLC following our change from non-accrual to accrual status for this investment in the first fiscal quarter of 2026.

Current wording

Investment income for the three and nine months ended September 30, 2026, totaled $59.0 million and $172.0 million, respectively, and consisted primarily of interest income on our debt investments. For the three and nine months ended September 30, 2026, we had $2.9 million and $9.6 million, respectively, of PIK interest included in interest income. Additionally, for the three and nine months ended September 30, 2026, $1.7 million and $2.6 million, respectively, of non-recurring interest income (e.g., prepayment premiums and accelerated accretion of upfront loan origination fees from unscheduled paydowns, and amendment fees that are earned at closing) was included in interest income. For the nine months ended September 30, 2026, $2.2 million of the $9.6 million, relates to PIK interest income recognized on our debt investments in Arborworks Acquisition, LLC following our change from non-accrual to accrual status for this investment in the first fiscal quarter of 2026.

Previous wording

Investment income for the three and six months ended June 30, 2025 totaled $57.3 million and $112.5 million, respectively, and consisted primarily of interest income on our debt investments. For the three and six months ended June 30, 2025, we had $2.1 million and $2.4 million, respectively, of PIK interest included in interest income. Additionally, for the three and six months ended June 30, 2025, $1.0 million and $1.9 million, respectively, of non-recurring interest income was included in interest income.

Current wording

Investment income for the three and nine months ended September 30, 2025 totaled $61.3 million and $173.9 million, respectively, and consisted primarily of interest income on our debt investments. For the three and nine months ended September 30, 2025, we had $2.1 million and $4.5 million, respectively, of PIK interest included in interest income. Additionally, for the three and nine months ended September 30, 2025, $1.5 million and $3.4 million, respectively, of non-recurring interest income was included in interest income.

Previous wording

Operating expenses for the three and six months ended June 30, 2026 and 2025 were as follows:

Current wording

Operating expenses for the three and nine months ended September 30, 2026 and 2025 were as follows:

Previous wording

During the three and six months ended June 30, 2026, we had realized losses of $12.2 million and realized losses of $14.5 million, respectively, on our investments. In February 2026, we completed a restructure of our debt investment in Regiment Security Partners LLC whereby our existing first lien senior secured debt was exchanged for new debt that included a tranche of last out first lien senior secured debt, and we recognized a $2.0 million realized loss as a result of the debt restructure. Additionally, during the first fiscal quarter of 2026, we recognized a $0.3 million realized loss due to the rotation out of one of our broadly syndicated loans. During the three months ended June 30, 2026, we recognized a $9.4 million realized loss on our investment in Sundance Holdings Group, LLC for which the liquidation process was completed, and we recognized a $0.9 million loss on our investment in Diverzify Intermediate LLC whereby our existing first lien senior secured debt was exchanged for new debt that included a first lien last out tranche of debt. Finally, during the three months ended June 30, 2026, we recognized a $1.9 million realized loss due to the rotation out of our four remaining broadly syndicated loans.

Current wording

During the three and nine months ended September 30, 2026, we had realized losses of $14.9 million and $29.4 million, respectively, on our investments. In February 2026, we completed a restructure of our debt investment in Regiment Security Partners LLC whereby our existing first lien senior secured debt was exchanged for new debt that included a tranche of last out first lien senior secured debt, and we recognized a $2.0 million realized loss as a result of the debt restructure. Additionally, during the first fiscal quarter of 2026, we recognized a $0.3 million realized loss due to the rotation out of one of our broadly syndicated loans. During the second fiscal quarter of 2026, we recognized a $9.4 million realized loss on our investment in Sundance Holdings Group, LLC for which the liquidation process was completed, and we recognized a $0.9 million loss on our investment in Diverzify Intermediate LLC whereby our existing first lien senior secured debt was exchanged for new debt that included a first lien last out tranche of debt. During the second fiscal quarter of 2026, we recognized a $1.9 million realized loss due to the rotation out of our four remaining broadly syndicated loans. Finally, during the three months ended September 30, 2026, we recognized a $14.9 million realized loss due to the restructure of American Soccer Company, Incorporated (SCORE), whereby a portion of our existing debt investment was exchanged for new debt investments and a preferred equity investment.

Previous wording

During the three and six months ended June 30, 2025, we had realized lossesof less than $0.1 million and realized gains of 0.6 million, respectively, on our investments.

Current wording

During the three and nine months ended September 30, 2025, we had realized lossesof less than $0.1 million and realized gains of $0.5 million, respectively, on our investments.

Previous wording

We fair value our portfolio investments quarterly and any changes in fair value are recorded as unrealized gains or losses. During the three and six months ended June 30, 2026 and 2025, net unrealized gains (losses) on our investment portfolio were comprised of the following:

Current wording

We fair value our portfolio investments quarterly and any changes in fair value are recorded as unrealized gains or losses. During the three and nine months ended September 30, 2026 and 2025, net unrealized gains (losses) on our investment portfolio were comprised of the following:

Previous wording

For the three and six months ended June 30, 2026, we had a deferred income tax expense of $0.0 million and $0.4 million, respectively, related to our net unrealized gain on our investments in KABDC Corp, LLC, a wholly owned subsidiary, that has elected to be treated as a corporation for U.S. tax purposes. For the three and six months ended June 30, 2025, we had a deferred income tax expense of $0.3 million and $0.9 million, respectively, In addition, as of June 30, 2026, our net deferred tax liability of $2.8 million is included in accrued expenses and other liabilities of our Consolidated Statement of Assets and Liabilities.

Current wording

For the three and nine months ended September 30, 2026, we had a deferred income tax expense of $0.2 million and $0.6 million, respectively, related to our net unrealized gain on our investments in KABDC Corp, LLC, a wholly owned subsidiary, that has elected to be treated as a corporation for U.S. tax purposes. For the three and nine months ended September 30, 2025, we had a deferred income tax expense of $0.4 million and $1.3 million, respectively. In addition, as of September 30, 2026, our net deferred tax liability of $3.0 million is included in accrued expenses and other liabilities of our Consolidated Statement of Assets and Liabilities.

Previous wording

For the six months ended June 30, 2026 and 2025, the top five largest contributors to the change in unrealized gains and the top five largest contributors to the change in unrealized losses on investments, and the remaining unrealized gains and losses from other portfolio companies, are presented in the following tables.

Current wording

For the nine months ended September 30, 2026 and 2025, the top five largest contributors to the change in unrealized gains and the top five largest contributors to the change in unrealized losses on investments, and the remaining unrealized gains and losses from other portfolio companies, are presented in the following tables.

Previous wording

As of June 30, 2026, we had $275 million Notes outstanding, $963 million borrowed under our credit facilities and cash and cash equivalents of $39.7 million (including investments in money market funds). As of that date, we had $437 million of undrawn commitments available on our credit facilities (subject to borrowing base restrictions and other conditions). As of August 5, 2026, we had $275 million Notes outstanding, $956 million borrowed under our credit facilities and cash and cash equivalents of $21.7 million (including investments in money market funds).

Current wording

As of September 30, 2026, we had $275 million Notes outstanding, $937 million borrowed under our credit facilities and cash and cash equivalents of $45.7 million (including investments in money market funds). As of that date, we had $463 million of undrawn commitments available on our credit facilities (subject to borrowing base restrictions and other conditions). As of October 29, 2026, we had $275 million Notes outstanding, $962 million borrowed under our credit facilities and cash and cash equivalents of $15.4 million (including investments in money market funds).

Previous wording

As of June 30, 2026 and December 31, 2025, we had an aggregate $293.3 million and $287.5 million, respectively, of unfunded commitments, including $169.4 million and $171.1 million, respectively, of unfunded commitments on revolvers, to provide debt financing to our portfolio companies. Such commitments are generally subject to the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in our financial statements. Other than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not have any other off-balance sheet financings or liabilities.

Current wording

As of September 30, 2026 and December 31, 2025, we had an aggregate $281.2 million and $287.5 million, respectively, of unfunded commitments, including $170.3 million and $171.1 million, respectively, of unfunded commitments on revolvers, to provide debt financing to our portfolio companies. Such commitments are generally subject to the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in our financial statements. Other than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not have any other off-balance sheet financings or liabilities.

Previous wording

The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Changes in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ. Our critical accounting policies, including those relating to the valuation of our investment portfolio, are described below. The critical accounting policies should be read in conjunction with our risk factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in this Quarterly Report. See Note 2 to our consolidated financial statements for the six months ended June 30, 2026, for more information on our critical accounting policies.

Current wording

The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Changes in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ. Our critical accounting policies, including those relating to the valuation of our investment portfolio, are described below. The critical accounting policies should be read in conjunction with our risk factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and in this Quarterly Report. See Note 2 to our consolidated financial statements for the nine months ended September 30, 2026, for more information on our critical accounting policies.

Previous wording

Controlled, Affiliated Investments. We hold investments in Siegel Egg Co., LLC and Siegel Parent, LLC, both collectively referred to "Siegel Egg," which are controlled, affiliated investments, as defined in the 1940 Act. See “Item 1. – Notes to Consolidated Financial Statements – Note 3. Agreements and Related Party Transactions” for further details.

Current wording

Controlled, Affiliated Investments. We hold investments in Siegel Egg Co., LLC and Siegel Parent, LLC, both collectively referred to as "Siegel Egg," and investments in Regiment Security Holdco, LLC (Regiment) and Riptide Security Holdco, LLC (Regiment), both collectively referred to as "Regiment", which are controlled, affiliated investments, as defined in the 1940 Act. See “Item 1. – Notes to Consolidated Financial Statements – Note 3. Agreements and Related Party Transactions” for further details.