UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

 

Investment Company Act file number   811-2183

 

 

 

 

 

  Barings Corporate Investors  
  (Exact name of registrant as specified in charter)  
 

 

 

  
  300 South Tryon Street, Suite 2500, Charlotte, NC 28202  
  (Address of principal executive offices) (Zip code)  
 

 

 

  
 

Corporation Service Company (CSC)

251 Little Falls Drive, Wilmington, DE 19808

  
  (Name and address of agent for service)  

 

 

 

Registrant's telephone number, including area code: 704-805-7200

 

Date of fiscal year end: 12/31

 

Date of reporting period: 12/31/21

 

 

* Explanatory Note.

 

The Registrant is filing this amendment to its Form N-CSR for the period ended December 31, 2021, originally filed with the Securities and Exchange Commission on March 10, 2022 (Accession No. 0001072613-22-000349). The purpose of the amendment is to restate the annual report in Item 1. 

 

Corporation Service Company (CSC) 251 Little Falls Drive, Wilmington, DE 19808

 

 

ITEM 1. REPORT TO STOCKHOLDERS.

 

Attached hereto is the annual shareholder report transmitted to shareholders pursuant to Rule 30e-1 of the Investment Company Act of 1940, as amended.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   




 

 

 

 

 

 

2021   

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Barings

CORPORATE INVESTORS

2021 Annual Report

 

 

 

 

   

     
     
     

 

 

 

BARINGS CORPORATE INVESTORS

Barings Corporate Investors (the “Trust”) is a closed-end management investment company, first offered to the public in 1971, whose shares are traded on the New York Stock Exchange under the trading symbol “MCI”. The Trust’s share price can be found in the financial section of newspapers under either the New York Stock Exchange listings or Closed-End Fund Listings.

INVESTMENT OBJECTIVE & STRATEGIES

The Trust’s investment objective is to maintain a portfolio of securities providing a current yield and, when available, an opportunity for capital gains. The Trust’s principal investments are privately placed, below-investment grade, long-term debt obligations including bank loans and mezzanine debt instruments. Such private placement securities may, in some cases, be accompanied by equity features such as common stock, preferred stock, warrants, conversion rights, or other equity features. The Trust typically purchases these investments, which are not publicly tradable, directly from their issuers in private placement transactions. These investments are typically made to small or middle market companies. In addition, the Trust may invest, subject to certain limitations, in marketable debt securities (including high yield and/or investment grade securities) and marketable common stock. Below- investment grade or high yield securities have predominantly speculative characteristics with respect to the capacity of the issuer to pay interest and repay capital.

The Trust distributes substantially all of its net income to shareholders each year. Accordingly, the Trust pays dividends to shareholders four times a year in January, May, August, and November. The Trust pays dividends to its shareholders in cash, unless the shareholder elects to participate in the Dividend Reinvestment and Share Purchase Plan.

In this report, you will find a complete listing of the Trust’s holdings. We encourage you to read this section carefully for a better understanding of the Trust. We cordially invite all shareholders to attend the Trust’s Annual Meeting of Shareholders, which will be held on May 19, 2022 at 8:00 A.M. (Eastern Time) in Charlotte, North Carolina, and virtually at the following website https://www.viewproxy.com/barings/broadridgevsm/.

 

 

PROXY VOTING POLICIES & PROCEDURES; PROXY VOTING RECORD

The Trustees of the Trust have delegated proxy voting responsibilities relating to the voting of securities held by the Trust to Barings LLC (“Barings”). A description of Barings’ proxy voting policies and procedures is available (1) without charge, upon request, by calling, toll-free 1-866-399-1516; (2) on the Trust’s website at http://www.barings.com/mci; and (3) on the U.S. Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2021 is available (1) on the Trust’s website at http://www.barings.com/mci; and (2) on the SEC’s website at http://www.sec.gov.

FORM N-PORT

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on part F of Form N-PORT. This information is available (i) on the SEC’s website at http://www.sec.gov; and (ii) at the SEC’s Public Reference Room in Washington, DC (which information on their operation may be obtained by calling 1-800-SEC-0330). A complete schedule of portfolio holdings as of each quarter-end is available on the Trust’s website at http://www.barings.com/mci or upon request by calling, toll-free, 1-866-399-1516.

LEGAL MATTERS

The Trust has entered into contractual arrangements with an investment adviser, transfer agent and custodian (collectively “service providers”) who each provide services to the Trust. Shareholders are not parties to, or intended beneficiaries of, these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the Trust.

Under the Trust’s Bylaws, any claims asserted against or on behalf of the Trust, including claims against Trustees and officers must be brought in courts located within the Commonwealth of Massachusetts.

The Trust’s registration statement and this shareholder report are not contracts between the Trust and its shareholders and do not give rise to any contractual rights or obligations or any shareholder rights other than any rights conferred explicitly by federal or state securities laws that may not be waived.

 

BARINGS CORPORATE INVESTORS

c / o Barings LLC

300 South Tryon St., Suite 2500

Charlotte, NC 28202

1-866-399-1516

http://www.barings.com/mci

ADVISER

Barings LLC

300 South Tryon St., Suite 2500

Charlotte, NC 28202

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

KPMG LLP

Boston, Massachusetts 02110

 

  

COUNSEL TO THE TRUST

Ropes & Gray LLP

Boston, Massachusetts 02111

CUSTODIAN

State Street Bank and Trust Company

Boston, MA 02110

TRANSFER AGENT & REGISTRAR

DST Systems, Inc.

P.O. Box 219086

Kansas City, MO 64121-9086

1-800-647-7374

 

 

 

2021 Annual Report

 

 

 

 

PORTFOLIO COMPOSITION AS OF 12/31/2021*

 

 

 

PORTFOLIO COMPOSITION AS OF 12/31/2020*

 

 

*Based on market value of total investments

In July 2017, the head of the U.K. Financial Conduct Authority (the “FCA”), announced that the FCA will no longer persuade or compel banks to submit rates for the calculation of LIBOR after 2021. In March 2021, the FCA confirmed that all LIBOR settings will either cease to be provided by any administrator or no longer be representative: (a) immediately after December 31, 2021, in the case of sterling, euro, Swiss franc, and Japanese yen, and the one week and two month U.S. dollar settings; and (b) immediately after June 30, 2023, in the case of the remaining U.S. dollar settings. In addition, as a result of supervisory guidance from U.S. regulators, some U.S. regulated entities will cease to enter into new LIBOR contracts after January 1, 2022. At this time, no consensus exists as to what rate or rates will become accepted alternatives to LIBOR, although the Alternative Reference Rates Committee, a steering committee convened by the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York and comprised of large U.S. financial institutions, has recommended the use of the Secured Overnight Financing Rate, SOFR. There are many uncertainties regarding a transition from LIBOR to SOFR or any other alternative benchmark rate that may be established, including, but not limited to, the timing of any such transition, the need to amend all contracts with LIBOR as the referenced rate and, given the inherent differences between LIBOR and SOFR or any other alternative benchmark rate, how any transition may impact the cost and performance of impacted securities, variable rate debt and derivative financial instruments. In addition, SOFR or another alternative benchmark rate may fail to gain market acceptance, which could adversely affect the return on, value of and market for securities, variable rate debt and derivative financial instruments linked to such rates. The effects of a transition from LIBOR to SOFR or any other alternative benchmark rate on the Trust’s cost of capital and net investment income cannot yet be determined definitively. All of the Trust’s loan agreements with

 

 

1

Barings Corporate Investors

 

 

 

the Trust’s portfolio companies include fallback language in the event that LIBOR becomes unavailable. This language generally either includes a clearly defined alternative reference rate after LIBOR’s discontinuation or provides that the administrative agent may identify a replacement reference rate, typically with the consent of (or prior consultation with) the borrower. In certain cases, the administrative agent will be required to obtain the consent of either a majority of the lenders under the facility, or the consent of each lender, prior to identifying a replacement reference rate. In addition, any further changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the market value for or value of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to the Trust and could have a material adverse effect on the Trust’s business, financial condition and results of operations.

 

 

 

Average Annual Returns

December 31, 2021

 1 Year     5 Year     10 Year    
       
Barings Corporate Investors 29.13% 8.46% 6.87%
       
Bloomberg Barclays U.S. Corporate High Yield Index 5.28% 6.30% 6.83%

Data for Barings Corporate Investors (the “Trust”) represents returns based on the change in the Trust’s market price assuming the reinvestment of all dividends and distributions. Past performance is no guarantee of future results. 

The graph and table do not reflect the deduction of taxes that a shareholder would pay on distributions from the Trust or the sale of shares.

 

2

2021 Annual Report

 

 

TO OUR SHAREHOLDERS

I am pleased to share with you the Trust’s Annual Report for the year ended December 31, 2021.

PORTFOLIO PERFORMANCE

The Trust’s net total portfolio rate of return for 2021 was 17.57%, as measured by the change in net asset value assuming the reinvestment of all dividends and distributions. The Trust’s total net assets were $338,041,104 or $16.68 per share, as of December 31, 2021. This compares to $304,684,324 or $15.04 per share, as of December 31, 2020. The Trust paid a quarterly dividend of $0.24 per share for each of the four quarters of 2021, for a total annual dividend of $0.96 per share. In 2020, the Trust paid four quarterly dividends of $0.24 per share, for a total annual dividend of $0.96 per share. Net taxable investment income for 2021 was $0.96 per share, including approximately $0.14 per share of non-recurring income, compared to 2020 net taxable investment income of $1.20 per share, which included approximately $0.33 per share of non-recurring income.

The Trust’s stock price increased 21.2% during 2021, from $13.18 as of December 31, 2020 to $15.98 as of December 31, 2021. The Trust’s stock price of $15.98 as of December 31, 2021 equates to a 4.2% discount to the December 31, 2021 net asset value per share of $16.68. The Trust’s average quarter-end premium/discount for the 3-, 5-, 10- and 25-year periods ended December 31, 2021 was -4.6%, -2.5%, 5.5%, and 7.3%, respectively.

The table below lists the average annual net returns of the Trust’s portfolio, based on the change in net assets and assuming the reinvestment of all dividends and distributions. Average annual returns of the Bloomberg Barclays U.S. Corporate High Yield Index for the 1-, 3-, 5-, 10- and 25-year periods ended December 31, 2021 and the Credit Suisse Leveraged Loan Index for the 1- and 3-year periods ended December 31, 2021 are provided for comparison purposes only.

 

  The Trust Bloomberg Barclays US
Corporate HY Index		 Credit Suisse
Leveraged
Loan Index
       
1 Year 17.57% 5.28% 5.40%
       
3 Years 12.09% 8.83% 5.43%
       
5 Years 10.95% 6.30%  
       
10 Years 11.44% 6.83%  
       
25 Years 12.18% 6.87%  

Past performance is no guarantee of future results

PORTFOLIO ACTIVITY

The Trust had an active fourth quarter, closing on 26 new private placement investments totaling $60.5 million and 19 add-on investments in existing portfolio companies totaling $10.7 million. For the year, the Trust closed 49 new private placement investments, and 46 add-on investments in existing portfolio companies. A brief description of these investments can be found in the Consolidated Schedule of Investments. The total amount invested by the Trust in private placement investments in 2021 was $149.1 million, which was significantly higher than the $64.6 million of private placement investments made by the Trust in 2020.

 

 

 

3

Barings Corporate Investors

 

 

 

New deal activity in 2021 occurred throughout the year with steady investment in the first three quarters ending the year with an exceptionally strong fourth quarter. The Trust was well-positioned to invest in 2021 due to the continuation of increased origination flow into 1st lien senior secured middle market assets, expansion of the private debt platform of Barings (the Trust’s investment adviser), and overall activity within the private debt market. These favorable items were partially offset by the continuance of hyper-competitive and aggressive market conditions. Competition for new investment opportunities remained intense due to the amount of fresh capital that flowed into the private debt and private equity markets. As a result, companies continued to be pursued aggressively by both buyers and lenders alike, leading to the continued prevalence of high purchase multiples and leverage levels in the market. We have strengthened our liquidity position by entering into a $30.0 million committed revolving credit facility with MassMutual (See Note 4). We drew $8.0 million on the facility at the end of the fourth quarter to fund new investments.

The Trust’s portfolio experienced an increased level of economic stress due to COVID-19 in early 2020. During the course of 2020 and 2021, in addition to working on new investment activity, we continued to maintain our focus on managing and maintaining the quality of the portfolio. Towards the end of the third quarter 2020, the credit quality of the Trust’s existing portfolio stabilized and began a trend of improvement that continued through the end of 2021. In our view, the number of companies on our watch list or in default has remained at acceptable levels.

We had 35 companies exit from the Trust’s portfolio during 2021. This level of exit activity in the Trust’s portfolio was above recent years as realization levels have ranged from 18-32 exits annually since 2014. In 33 of these exits, the Trust realized a positive return on its investment. This level of realization activity in recent years is yet another indicator of how active and aggressive the middle market M&A and debt markets have been, and continue to be.

During 2021, the Trust had 4 portfolio companies fully or partially pre-pay their debt obligations. These transactions, in which the debt instruments held by the Trust were fully or partially prepaid, are generally driven by performing companies seeking to take advantage of lower interest rates and the abundance of debt capital. Unless replaced by new private debt investments, these prepayments reduce net investment income. The level of refinancing activity the portfolio has experienced has remained relatively stable since 2016. Two portfolio companies paid dividends to the Trust on its equity holdings in those companies.

OUTLOOK FOR 2022

With demand for products and services continuing to increase, one key question in 2022 is whether supply chains can keep up with the renewed demand and whether we will see material increases in prices as a result of supply-chain bottlenecks, rising raw material and energy costs and labor shortages. Across the world, and particularly in regions with large manufacturing sectors which depend on international trade, these risks may be key. However, it is important to note that such issues do not affect every geography and sector the same. When constructing portfolios, we focus on investing in high-quality businesses which are leaders in their space and offer defensive characteristics which will allow them to perform through the cycle. Therefore, while segments of the broader economy may be affected by potential supply chain issues, increasing raw material and energy costs and labor shortages, we remain confident in the current diversified portfolio to perform through the cycle.

As we enter 2022, default rates remain at relatively low levels, there appears to be plenty of both private equity and private debt capacity, which should continue to drive middle market M&A activity, and our pipeline of investment opportunities remains relatively

 

 

 

 

 

4

2021 Annual Report

 

 

 

stable and healthy. However, as mentioned above, the dynamics within that market have been, and are expected to remain, aggressive. Rest assured that regardless of market conditions, we will continue to employ on behalf of the Trust the same investment philosophy that has served it well since its inception: investing in companies that we believe have a strong business proposition, solid cash flow and experienced, ethical management. We believe this philosophy, along with Barings’ seasoned investment-management team, positions the Trust well to meet its long-term investment objectives.

The Trust maintained its quarterly dividend of $0.24 per share in 2021 for a total annual dividend of $0.96 per share. As has been mentioned in prior reports, recurring investment income alone has generally not been sufficient to fully fund the current dividend rate, which has required supplementation from non-recurring income and earnings carry forwards. While recurring investment income remains stable, it may not be sufficient to fully fund the current dividend rate in the future. Net investment income has generally been below the dividend rate since 2013 due principally to the considerable reduction in the number of higher yielding junior debt investment opportunities resulting from prepayments and realizations in the portfolio, combined with generally lower investment returns available due to market and competitive dynamics in recent years. Floating interest rates continue to be low by historic standards, and should such rates rise, the Trust’s income would likely also rise. The percentage of the portfolio in floating rate debt securities, which are often secured and generally of higher credit quality than higher-yielding junior debt, increased to 70% as of December 31, 2021, compared to 59% as of December 31, 2020. All of the above said, the level of recurring investment income expected to be generated by the Trust in 2022, combined with the availability of earnings carry forwards and other non-recurring income, is currently expected to be sufficient to maintain the current dividend rate over the next several quarters. Over time, however, the Trust’s dividend paying ability tends to be correlated with its recurring earnings capacity. We and the Board of Trustees will continue to evaluate the current and future earnings capacity of the Trust and formulate a dividend strategy that is consistent with the Trust’s recurring earnings.

As always, I would like to thank you for your continued interest in and support of Barings Corporate Investors. I look forward to seeing you at the Trust’s annual shareholder meeting on Thursday May 19, 2022.

Sincerely,

 

Christina Emery

President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

Barings Corporate Investors

 

 

 

 

 

 

           
2021
Dividends

Record

Date

Total

Paid

Ordinary

Income

Short-Term

Gains

Long-Term

Gains

Regular        5/3/2021 0.2400 0.2400                -                -
Regular        8/2/2021 0.2400 0.2400                -                -
Regular     11/8/2021 0.2400 0.2400                -                -
Regular 12/30/2021 0.2400 0.2400                -                -
    0.9600 0.9600 0.0000 0.0000

 

 

The following table summarizes the tax effects of the relation of capital gains for 2021:

 

  Amount per Share Form 2439
2021 Gains Retained 0.4199 Line 1a
Long-Term Gains Retained 0.4199  
Taxes Paid 0.0882 Line 2*
Basis Adjustment 0.3317 **
*If you are not subject to federal capital gains tax (e.g. charitable organizations, IRAs and Keogh Plans) you may be able to claim a refund by filing Form 990-T.
**For federal income tax purposes, you may increase the adjusted cost basis of your shares by this amount (the excess of Line 1a over Line 2).

 

             

Annual

Dividend

Qualified for Dividend

Received Deduction***

 Qualified Dividends****

Interest Earned on

U.S. Gov’t. Obligations

Amount per

Share

 Percent

Amount per

Share

 Percent

Amount per

Share

 Percent

Amount per

Share

$0.96 0.4482% 0.0043 0.4482% 0.0043 0% 0.0000
***Not available to individual shareholders
****Qualified dividends are reported in Box 1b on IRS Form 1099-Div for 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

  
   
BARINGS CORPORATE INVESTORS  
   
   
   
   
Financial Report  
   
Consolidated Statement of Assets and Liabilities 8
   
Consolidated Statement of Operations 9
   
Consolidated Statement of Cash Flows 10
   
Consolidated Statements of Changes in Net Assets 11
   
Consolidated Selected Financial Highlights 12
   
Consolidated Schedule of Investments 13-41
   
Notes to Consolidated Financial Statements 42-52
   
Report of Independent Registered Public Accounting Firm 53
   
Interested Trustees 54-55
   
Independent Trustees 56-57
   
Officers of the Trust 58-60

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

7

Barings Corporate Investors

 

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

December 31, 2021

 

     
Assets:    
Investments    
(See Consolidated Schedule of Investments)     
Corporate restricted securities - private placement investments at fair value     
(Cost - $315,776,594)  $330,680,099 
Corporate restricted securities - rule 144A securities at fair value     
(Cost - $13,278,819)   14,415,659 
Corporate public securities at fair value     
(Cost - $8,502,088)   8,498,057 
Short-term securities at fair value     
(Cost - $7,999,129)   7,999,129 
      
Total investments (Cost - $345,556,630)   361,592,945 
      
Cash   21,135,142 
Foreign currencies (Cost - $14,921)   14,935 
Dividend and interest receivable   3,007,972 
Receivable for investments sold   911,356 
Deferred financing fees   69,353 
Other assets   371,243 
      
Total assets   387,102,946 
      
Liabilities:     
Note payable   30,000,000 
Credit facility   8,000,000 
Dividend payable   4,862,813 
Tax payable   2,628,902 
Payable for investments purchased   1,816,897 
Investment advisory fee payable   1,086,534 
Deferred tax liability   406,603 
Interest payable   141,336 
Accrued expenses   118,757 
      
Total liabilities   49,061,842 
      
Commitments and Contingencies (See Note 7)     
      
Total net assets  $338,041,104 
      
Net Assets:     
Common shares, par value $1.00 per share  $20,261,719 
Additional paid-in capital   278,673,148 
Total distributable earnings   39,106,237 
      
Total net assets  $338,041,104 
      
Common shares issued and outstanding (28,054,782 authorized)   20,261,719 
      
Net asset value per share  $16.68 

 

 

 

See Notes to Consolidated Financial Statements

 

 

8

2021 Annual Report

 

CONSOLIDATED STATEMENT OF OPERATIONS

For the year ended December 31, 2021

 

 

     
Investment Income:     
Interest  $24,334,971 
Dividends   685,872 
Other   737,140 
      
Total investment income   25,757,983 
      
Expenses:     
Investment advisory fees   4,166,351 
Interest and other financing fees   1,071,813 
Trustees’ fees and expenses   421,148 
Professional fees   311,206 
Reports to shareholders   160,400 
Custodian fees   33,600 
Other   126,340 
      
Total expenses   6,290,858 
      
Investment income - net   19,467,125 
      
Income tax, including excise tax expense   585,248 
Net Investment income after taxes   18,881,877 
      
Net realized and unrealized gain on investments and foreign currency:     
Net realized gain on investments before taxes   12,454,954 
Net realized gain on foreign currency transactions before taxes   367 
Income tax expense   (2,130,306)
      
Net realized gain on investments and foreign currency transactions after taxes   10,325,015 
      
Net increase in unrealized appreciation of investments before taxes   24,007,727 
Net increase in unrealized appreciation of foreign currency translation before taxes   14 
Net increase in deferred income tax expense   (406,603)
      
Net increase in unrealized appreciation of investments and foreign currency transactions after taxes   23,601,138 
      
Net gain on investments and foreign currency   33,926,153 
      
Net increase in net assets resulting from operations  $52,808,030 

 

 

 

 

See Notes to Consolidated Financial Statements

 

 

9

Barings Corporate Investors

 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended December 31, 2021

 

 

 

     
Net decrease in cash & foreign currencies:     
      
Cash flows from operating activities:     
Purchases/Proceeds/Maturities from short-term portfolio securities, net  $(2,980,203)
Purchases of portfolio securities   (157,927,571)
Proceeds from disposition of portfolio securities   144,118,259 
Interest, dividends and other income received   26,222,309 
Interest expense paid   (1,059,001)
Operating expenses paid   (5,031,513)
Income taxes paid   (516,431)
      
Net cash provided by operating activities   2,825,849 
      
Cash flows from financing activities:     
Borrowings under credit facility   8,000,000 
Cash dividends paid from net investment income   (19,451,250)
Financing fees paid   (76,146)
      
Net cash used for financing activities   (11,527,396)
      
Net decrease in cash & foreign currencies   (8,701,547)
      
Cash & foreign currencies - beginning of period   29,851,624 
      
Cash & foreign currencies - end of period  $21,150,077 
      
Reconciliation of net increase in net assets to net
cash provided by operating activities:		     
      
Net increase in net assets resulting from operations  $52,808,030 
      
Increase in investments   (52,245,064)
Increase in interest receivable   (579,747)
Increase in receivable for investments sold   (864,565)
Decrease in other assets   1,985,830 
Increase in tax payable   2,199,123 
Increase in deferred tax liability   406,603 
Decrease in payable for investments purchased   (1,084,705)
Increase in investment advisory fee payable   135,427 
Increase in interest payable   6,019 
Increase in accrued expenses   58,898 
      
Total adjustments to net assets from operations   (49,982,181)
      
Net cash provided by operating activities  $2,825,849 

 

 

See Notes to Consolidated Financial Statements

 

 

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2021 Annual Report

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

 

         
  

For the
year ended
12/31/2021

  

For the
year ended
12/31/2020

 
Increase / (decrease) in net assets:          
           
Operations:          
Investment income - net  $18,881,877   $24,386,956 
Net realized gain on investments and foreign currency after taxes   10,325,015    2,244,872 
Net change in unrealized appreciation / (depreciation) of investments and foreign currency after taxes   23,601,138    (11,297,903)
           
Net increase in net assets resulting from operations   52,808,030    15,333,925 
           
Increase from common shares issued on reinvestment of dividends          
Common shares issued (2021 - nil; 2020 -35,674)   —    552,229 
           
Dividends to shareholders from:          
Distributable earnings to Common Stock Shareholders (2021 - $0.96 per share; 2020 - $0.96 per share)   (19,451,250)   (19,451,250)
           
Total increase / (decrease) in net assets   33,356,780    (3,565,096)
           
Net assets, beginning of year   304,684,324    308,249,420 
           
Net assets, end of year  $338,041,104   $304,684,324 

 

See Notes to Consolidated Financial Statements

 

11

Barings Corporate Investors

 

CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS

Selected data for each share of beneficial interest outstanding:

 

 

   For the years ended December 31, 
   2021   2020   2019   2018   2017 
Net asset value:                    
Beginning of year  $15.04   $15.24   $14.50   $15.22   $14.23 
                          
Net investment income (a)   0.93    1.20    1.11    1.21    1.27 
Net realized and unrealized gain/(loss) on investments   1.67    (0.44)   0.82    (0.73)   0.92 
                          
Total from investment operations   2.60    0.76    1.93    0.48    2.19 
                          
Dividends from net investment income to common shareholders   (0.96)   (0.96)   (1.20)   (1.20)   (1.20)
Increase from dividends reinvested   —    0.00    0.01    0.00    0.00 
                          
Total dividends   (0.96)   (0.96)   (1.19)   (1.20)   (1.20)
                          
Net asset value: End of year  $16.68   $15.04   $15.24   $14.50   $15.22 
                          
Per share market value: End of year  $15.98   $13.18   $16.86   $14.70   $15.26 
                          
Total investment return                         
Net asset value (b)   17.57%    5.36%    13.71%    3.17%    15.72% 
Market value (b)   29.13%    (15.95%)   23.77%    4.54%    6.86% 
                          
Net assets (in millions):                         
End of year  $338.04   $304.68   $308.25   $291.24   $303.53 
Ratio of total expenses to average net assets (c)   2.78%    1.53%    2.33%    2.87%    3.63% 
Ratio of operating expenses to average net assets   1.61%    1.54%    1.57%    1.71%    1.59% 
Ratio of interest expense to average net assets   0.33%    0.35%    0.35%    0.35%    0.51% 
Ratio of income tax expense to average net assets   0.84%    (0.36%)   0.42%    0.81%    1.53% 
Ratio of net investment income to average net assets   5.84%    8.17%    7.41%    8.00%    8.49% 
Portfolio turnover   45%    33%    21%    48%    25% 

 

(a)Calculated using average shares.

(b)Net asset value return represents portfolio returns based on change in the Trust’s net asset value assuming the reinvestment of all dividends and distributions which differs from the total investment return based on the Trust’s market value due to the difference between the Trust’s net asset value and the market value of its shares outstanding; past performance is no guarantee of future results.

(c)Total expenses include income tax expense.

 

Senior borrowings:                         
                          
Total principal amount (in millions)  $38   $30   $30   $30   $30 
                          
Asset coverage per $1,000 of indebtedness  $9,896   $11,156   $11,275   $10,708   $11,118 

 

 

See Notes to Consolidated Financial Statements

 

 

12

 

2021 Annual Report

 

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2021

 

 

Corporate Restricted Securities - 102.09%: (A) 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
 
Private Placement Investments - 97.82%: (C)
 
1WorldSync, Inc.
A product information sharing platform that connects manufacturers/suppliers and key retailers via the Global Data Synchronization Network.
6.25% Term Loan due 06/24/2025
(LIBOR + 5.250%)		  $4,937,158   *   $4,873,795   $4,937,158 
* 07/01/19 and 12/09/20.                  

 

Accelerate Learning

A provider of standards-based, digital science education content of K-12 schools.
6.00% Term Loan due 12/31/2024
(LIBOR + 5.000%)		  $2,028,215   12/19/18    2,008,155    1,991,056 
6.00% Term Loan due 12/20/2024
(LIBOR + 5.000%)		  $1,471,785   09/30/21    1,444,652    1,444,821 
            3,452,807    3,435,877 
 

Advanced Manufacturing Enterprises LLC

A designer and manufacturer of large, custom gearing products for a number of critical customer applications.
Limited Liability Company Unit (B)    4,669 uts.    *    498,983    — 
* 12/07/12, 07/11/13 and 06/30/15.                  

 

Advantage Software

A provider of enterprise resource planning (ERP) software built for advertising and marketing agencies.
Limited Liability Company Unit Class A (F)    1,556 uts.    10/01/21    50,720    50,720 
Limited Liability Company Unit Class A (F)    401 uts.    10/01/21    13,103    13,103 
Limited Liability Company Unit Class B (F)    1,556 uts.    10/01/21    1,630    1,630 
Limited Liability Company Unit Class B (F)    401 uts.    10/01/21    420    420 
            65,873    65,873 
 
Aftermath, Inc.
A provider of crime scene cleanup and biohazard remediation services.
6.00% Term Loan due 04/10/2025
(LIBOR + 5.000%)		  $3,496,262   *    3,449,361    3,449,319 
* 04/09/19 and 04/23/21.                  

 

AIT Worldwide Logistics, Inc.

A provider of domestic and international third-party logistics services.
8.50% Second Lien Term Loan due 03/31/2029
(LIBOR + 7.750%)		  $3,387,097   04/06/21    3,317,944    3,387,097 

 

 

 

See Notes to Consolidated Financial Statements

 

 

13

Barings Corporate Investors

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 


Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
Limited Liability Company Unit (B)    113 uts.    04/06/21   $112,903   $223,066 
            3,430,847    3,610,163 
 

AMS Holding LLC

A leading multi-channel direct marketer of high-value collectible coins and proprietary-branded jewelry and watches.
Limited Liability Company Unit Class A
Preferred (B) (F)		    273 uts.    10/04/12    272,727    572,670 

 

Amtech Software

A provider of enterprise resource planning software and technology solutions for packaging manufacturers.
6.25%First Lien Term Loan due 11/02/2027
(LIBOR + 5.500%) (G)		  $2,000,000   11/02/21    1,052,004    1,050,910 

 

ASC Holdings, Inc.

A manufacturer of capital equipment used by corrugated box manufacturers.
13% (1% PIK) Senior Subordinated Note due
12/31/2024		  $1,530,352   11/19/15    1,530,343    1,530,352 
Limited Liability Company Unit (B)    225,300 uts.    11/18/15    225,300    30,416 
            1,755,643    1,560,768 
 
ASPEQ Holdings
A manufacturer of highly-engineered electric heating parts and equipment for a range of industrial, commercial, transportation and marine applications.
6.25% Term Loan due 10/31/2025
(LIBOR + 5.250%)		  $2,361,498   11/08/19    2,338,761    2,361,498 

 

Audio Precision

A provider of high-end audio test and measurement sensing instrumentation software and accessories.
7.00% Term Loan due 10/31/2024
(LIBOR + 6.000%)		  $3,686,000   10/30/18    3,651,225    3,686,000 

 

Aurora Parts & Accessories LLC

A distributor of aftermarket over-the-road semi-trailer parts and accessories sold to customers across North America.
Preferred Stock (B)    425 shs.    08/17/15    424,875    424,875 
Common Stock (B)    425 shs.    08/17/15    425    281,546 
            425,300    706,421 
                   

 

 

See Notes to Consolidated Financial Statements

 

 

14

2021 Annual Report

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

  

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
 
BDP International, Inc.
A provider of transportation and related services to the chemical and life sciences industries.
6.25% Term Loan due 12/14/2024
(LIBOR + 5.250%)		  $4,850,000   12/18/18   $4,802,187   $4,777,250 
6.25% Term Loan due 12/19/2024
(LIBOR + 5.250%)		  $86,625   12/07/20    85,351    85,326 
6.25% Term Loan due 12/21/2024
(LIBOR + 5.250%)		  $12,406   03/30/21    12,208    12,220 
            4,899,746    4,874,796 
 
Best Lawyers (Azalea Investment Holdings, LLC)
A global digital media company that provides ranking and marketing services to the legal community.
6.25%First Lien Term Loan due 11/19/2027
(LIBOR + 5.250%) (G)		  $2,822,436   11/30/21    2,093,739    2,092,911 
12% HoldCo PIK Note due 5/19/2028  $587,821   11/30/21    576,223    576,064 
Limited Liability Company Unit    89,744 uts.    11/30/21    89,744    89,744 
            2,759,706    2,758,719 
 
Blue Wave Products, Inc.
A distributor of pool supplies.                  
Common Stock (B)    114,894 shs.    10/12/12    114,894    253,891 
Warrant, exercisable until 2022, to purchase
common stock at $.01 per share (B)		    45,486 shs.    10/12/12    45,486    100,514 
            160,380    354,405 
 
BrightSign
A provider of digital signage hardware and software solutions, serving a variety of end markets, including retail, restaurants, government, sports, and entertainment.
6.75% Term Loan due 10/14/2027
(LIBOR + 5.750%) (G)		  $2,971,048   10/14/21    2,663,102    2,662,097 
Limited Liability Company Unit (F)    232,701 uts.    10/14/21    232,701    238,519 
            2,895,803    2,900,616 
 
Brown Machine LLC
A designer and manufacturer of thermoforming equipment used in the production of plastic packaging containers within the food and beverage industry.
6.25% Term Loan due 10/04/2024
(LIBOR + 5.250%)		  $1,777,889   10/03/18    1,766,220    1,777,889 

 

 

See Notes to Consolidated Financial Statements

 

 

15

Barings Corporate Investors

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
 
Cadence, Inc.
A full-service contract manufacturer (“CMO”) and supplier of advanced products, technologies, and services to medical device, life science, and industrial companies.
6.00% First Lien Term Loan due 04/30/2025
(LIBOR + 5.000%)		  $2,206,562   05/14/18   $2,185,147   $2,144,778 

 

Cadent, LLC

A provider of advertising solutions driven by data and technology.
6.00% Term Loan due 09/07/2023
(LIBOR + 5.000%)		  $1,852,753   09/04/18    1,846,462    1,852,753 

 

CAi Software

A vendor of mission-critical, production-oriented software to niche manufacturing and distribution sectors.
7.25% Term Loan due 12/10/2028
(LIBOR + 6.250%) (G)		  $5,000,000   12/13/21    4,429,251    4,428,507 

 

Cash Flow Management

A software provider that integrates core banking systems with branch technology and creates modern retail banking experiences for financial institutions
6.75% Term Loan due 12/27/2027
(LIBOR + 5.750%) (G)		  $1,973,933   12/28/21    1,785,272    1,785,201 

 

Claritas Holdings, Inc.

A market research company that provides market segmentation insights to customers engaged in direct-to-consumer and business-to-business marketing activities.
6.75% Term Loan due 12/31/2023
(LIBOR + 5.750%)		  $3,212,010   12/20/18    3,180,391    3,212,010 

 

CloudWave

A provider of managed cloud hosting and IT services for hospitals.
7.00% Term Loan due 01/04/2027
(LIBOR + 6.000%)		  $3,361,694   01/29/21    3,297,824    3,309,308 
Limited Liability Company Unit (B) (F)    112,903 uts.    01/29/21    112,903    78,468 
            3,410,727    3,387,776 

 

 

See Notes to Consolidated Financial Statements

 

 

16

2021 Annual Report

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
 
Command Alkon
A vertical-market software and technology provider to the heavy building materials industry delivering purpose-built, mission critical products that serve as the core operating & production systems for ready-mix concrete producers, asphalt producers, and aggregate suppliers.
9.25% Term Loan due 04/17/2027
(LIBOR + 8.250%) (G)		  $4,990,525   *   $4,065,862   $4,162,081 
Limited Liability Company Unit    37 uts.    04/23/20    36,535    40,810 
Limited Liability Company Unit B    13,449 uts.    04/23/20    —    75,007 
* 04/23/20, 10/30/20 and 11/18/20.           4,102,397    4,277,898 
 

 

Concept Machine Tool Sales, LLC

A full-service distributor of high-end machine tools and metrology equipment, exclusively representing a variety of global manufacturers in the Upper Midwest.
6.00% Term Loan due 01/31/2025
(LIBOR + 5.000%)		  $1,215,188   01/30/20    1,200,209    1,172,656 
Limited Liability Company Unit (F)    2,575 uts.    *    103,121    66,667 
* 01/30/2020 and 03/05/21           1,303,330    1,239,323 
 

 

CTS Engines

A provider of maintenance, repair and overhaul services within the aerospace & defense market.
6.50% Term Loan due 12/22/2026
(LIBOR + 5.500%)		  $2,889,881   12/22/20    2,841,954    2,791,625 

 

Dart Buyer, Inc.

A manufacturer of helicopter aftermarket equipment and OEM Replacement parts for rotorcraft operators, providers and OEMs.
6.25% Term Loan due 04/01/2025
(LIBOR + 5.250%) (G)		  $3,438,129   04/01/19    2,830,424    2,754,170 

 

Decks Direct

An eCommerce direct-to-consumer seller of specialty residential decking products in the United States.
7.00% Term Loan due 12/28/2026
(LIBOR + 6.000%) (G)		  $3,309,091   12/29/21    2,479,381    2,479,272 
Common Stock    4,483 shs.    12/29/21    190,909    190,922 
            2,670,290    2,670,194 

 

 

See Notes to Consolidated Financial Statements

 

 

17

Barings Corporate Investors

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
 
Del Real LLC
A manufacturer and distributor of fully-prepared fresh refrigerated Hispanic entrees as well as side dishes that are typically sold on a heat-and-serve basis at retail grocers.
11% Senior Subordinated Note due 04/06/2023 (D)  $2,882,353   10/07/16   $2,848,206   $2,738,235 
Limited Liability Company Unit (B) (F)    748,287 uts.    *    748,548    169,480 
* 10/07/16, 07/25/18, 03/13/19 and 06/17/19.           3,596,754    2,907,715 
 

 

DistroKid (IVP XII DKCo-Invest,LP)

A subscription-based music distribution platform that allows artists to easily distribute, promote, and monetize their music across digital service providers, such as Spotify and Apple Music.
7.00% Term Loan due 09/30/2027
(LIBOR + 6.000%)		  $3,351,064   10/01/21    3,286,858    3,284,043 
Limited Liability Company Unit (F)    148,791 uts.    10/01/21    148,936    148,791 
            3,435,794    3,432,834 
 
Dunn Paper
A provider of specialty paper for niche product applications.
10.25% Second Lien Term Loan due 08/31/2023 (LIBOR + 9.250%)  $3,500,000   09/28/16    3,478,053    3,069,500 

 

Dwyer Instruments, Inc.

A designer and manufacturer of precision measurement and control products for use with solids, liquids and gases.
6.25% First Lien Term Loan due 07/01/2027
(LIBOR + 5.500%) (G)		  $2,000,000   07/20/21    1,699,836    1,718,843 
                   
Echo Logistics                  
A provider of tech-enabled freight brokerage across various modes including Truckload, Less-than-Truckload, Parcel, and Intermodal, as well as managed (contracted) transportation services.
7.50% Second Lien Term Loan due 11/05/2029
(LIBOR + 7.250%)		  $3,407,080   11/22/21    3,348,277    3,347,456 
Limited Liability Company Unit    93 uts.    11/22/21    92,920    92,920 
            3,441,197    3,440,376 
                   
EFI Productivity Software                  
A provider of ERP software solutions purpose-built for the print and packaging industry.
6.50% Term Loan due 12/30/2027
(LIBOR + 6.00%) (G)		  $2,000,000   12/30/21    1,813,977    1,813,977 

 

 

 

See Notes to Consolidated Financial Statements

 

 

18

2021 Annual Report

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
Electric Power Systems International, Inc.               
A provider of electrical testing services for apparatus equipment and protection & controls infrastructure.
6.75% Term Loan due 04/19/2028
(LIBOR + 5.750%) (G)		  $2,601,518   04/19/21   $2,317,677   $2,324,589 
                   
Elite Sportswear Holding, LLC                  
A designer and manufacturer of gymnastics, competitive cheerleading and swimwear apparel in the U.S. and internationally.
Limited Liability Company Unit (B) (F)    2,471,843 uts.    10/14/16    324,074    — 
                   
Ellkay                  
A provider of data interoperability solutions for labs, hospitals and healthcare providers.
6.75% Term Loan due 09/14/2027
(LIBOR + 5.750%)		  $1,468,316   09/14/21    1,440,295    1,441,858 
                   
English Color & Supply LLC                  
A distributor of aftermarket automotive paint and related products to collision repair shops, auto dealerships and fleet customers through a network of stores in the Southern U.S.
11.5% (0.5% PIK) Senior Subordinated Note due
12/31/2023		  $2,754,327   06/30/17    2,735,944    2,745,113 
Limited Liability Company Unit (B) (F)    806,916 uts.    06/30/17    806,916    1,666,714 
            3,542,860    4,411,827 
                   
ENTACT Environmental Services, Inc.                  
A provider of environmental remediation and geotechnical services for blue-chip companies with regulatory-driven liability enforcement needs.
6.75% Term Loan due 12/15/2025
(LIBOR + 4.750%)		  $2,112,434   02/09/21    2,095,200    2,084,972 
                   
eShipping                  
An asset-life third party logistics Company that serves a broad variety of end markets and offers service across all major transportation modes.
6.75% Term Loan due 11/05/2027
(LIBOR + 5.750%) (G)		  $3,500,000   11/05/21    2,549,884    2,548,064 

 

 

 

See Notes to Consolidated Financial Statements

 

 

19

Barings Corporate Investors

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
E.S.P. Associates, P.A.               
A professional services firm providing engineering, surveying and planning services to infrastructure projects. 
Limited Liability Company Unit (B)    684 uts.    *   $741,480   $684,856 
* 06/29/18 and 12/29/20.                  
                   
F G I Equity LLC                  
A manufacturer of a broad range of filters and related products that are used in commercial, light industrial, healthcare, gas turbine, nuclear, laboratory, clean room, hotel, educational system, and food processing settings.
Limited Liability Company Unit Class B-1 (B)    296,053 uts.    12/15/10    254,058    4,346,054 
                   
Follett School Solutions                  
A provider of software for K-12 school libraries.                  
6.50% First Lien Term Loan due 07/09/2028
(LIBOR + 5.750%)		  $3,469,376   08/31/21    3,401,905    3,407,698 
LP Units (B) (F)    1,787 uts.    08/30/21    17,865    46,162 
LP Interest (B) (F)    406 uts.    08/30/21    4,063    10,499 
            3,423,833    3,464,359 
                   
FragilePAK                  
A provider of third-party logistics services focused on the full delivery life-cycle for big and bulky products.
5.85% Term Loan due 05/24/2027
(LIBOR + 5.750%) (G)		  $3,275,781   05/21/21    2,100,927    2,109,715 
Limited Liability Company Unit (B) (F)    219 uts.    05/21/21    218,750    216,042 
            2,319,677    2,325,757 
                   
GD Dental Services LLC                  
A provider of convenient “onestop” general, specialty, and cosmetic dental services with offices located throughout Florida and Georgia.
Limited Liability Company Unit Preferred (B)    182 uts.    10/05/12    182,209    133,402 
Limited Liability Company Unit Common (B)    1,840 uts.    10/05/12    1,840    — 
            184,049    133,402 

 

 

 

See Notes to Consolidated Financial Statements

 

 

20

 

2021 Annual Report

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
gloProfessional Holdings, Inc.               
A marketer and distributor of premium mineral-based cosmetics, cosmeceuticals and professional hair care products to the professional spa and physician’s office channels.
Preferred Stock (B)   1,559 shs.    03/29/19   $1,559,055   $1,933,451 
Common Stock (B)    2,835 shs.    03/27/13    283,465    66,395 
            1,842,520    1,999,846 
                   
GraphPad Software, Inc.                  
A provider of data analysis, statistics and graphing software solution for scientific research applications, with a focus on the life sciences and academic end-markets. 
7.00% Term Loan due 04/27/2027
(LIBOR + 6.000%)		  $4,849,313   *    4,817,498    4,873,559 
6.50% Term Loan due 04/27/2027
(PRIME + 5.500%)		  $99,955   04/27/21    98,183    100,454 
Preferred Stock (B) (F)    7,474 shs.    04/27/21    206,294    225,429 
* 12/19/17 and 04/16/19.           5,121,975    5,199,442 
                   
                   
Handi Quilter Holding Company (Premier Needle Arts)                  
A designer and manufacturer of long-arm quilting machines and related components for the consumer quilting market.
Limited Liability Company Unit Preferred (B)    754 uts.    *    754,062    1,237,503 
Limited Liability Company Unit Common
Class A (B)		    7,292 uts.    12/19/14    —    42,495 
* 12/19/14 and 04/29/16.           754,062    1,279,998 
                   
                   
Heartland Veterinary Partners                  
A veterinary support organization that provides a comprehensive set of general veterinary services as well as ancillary services such as boarding and grooming. 
11.00% Opco PIK Note due 11/09/2028 (G)  $3,500,000   11/17/21    3,184,128    3,182,500 
                   
HHI Group, LLC                  
A developer, marketer, and distributor of hobby-grade radio control products. 
Limited Liability Company Unit (B) (F)    203 uts.    01/17/14    203,125    995,146 
                   
Home Care Assistance, LLC                  
A provider of private pay non-medical home care assistance services. 
5.75% Term Loan due 03/30/2027
(LIBOR + 4.750%) (G)		  $1,774,521   03/26/21    1,743,518    1,739,031 

 

 

 

See Notes to Consolidated Financial Statements

 

 

21

Barings Corporate Investors

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
HOP Entertainment LLC               
A provider of post production equipment and services to producers of television shows and motion pictures.
Limited Liability Company Unit Class F (B) (F)  89 uts.   10/14/11  —   — 
Limited Liability Company Unit Class G (B) (F)  215 uts.   10/14/11  —   — 
Limited Liability Company Unit Class H (B) (F)  89 uts.   10/14/11  —   — 
Limited Liability Company Unit Class I (B) (F)  89 uts.   10/14/11  —   — 
          —   — 
IGL Holdings III Corp.               
A specialty label and flexible packaging converter.
5.92% Term Loan due 10/23/2026 (LIBOR +
5.750%) (G)		  $3,473,713   11/02/20   $3,047,014   $3,068,213 
                   
IM Analytics Holdings, LLC                  
A provider of test and measurement equipment used for vibration, noise, and shock testing.
8.00% Term Loan due 11/22/2023 (LIBOR +
7.000%)		  $2,179,001   11/21/19    2,168,665    1,770,438 
Warrant, exercisable until 2026, to purchase                  
common stock at $.01 per share (B)    18,488 shs.    11/25/19    —    — 
            2,168,665    1,770,438 
                   
Industrial Service Solutions                  
A provider of maintenance, repair and overhaul services for process equipment within the industrial, energy and power end-markets.
6.50% Term Loan due 01/31/2026 (LIBOR +
5.500%)		  $1,847,804   02/05/20    1,822,582    1,757,261 
                   
JF Petroleum Group                  
A provider of repair, maintenance, installation and projection management servicese to the US fueling infrastructure industry.
6.50% Term Loan due 07/31/2024 (LIBOR +
5.500%)		  $1,421,441   05/04/21    1,384,449    1,364,583 
                   
Kano Laboratories LLC                  
A producer of industrial strength penetrating oils and lubricants.
6.00% Term Loan due 09/30/2026 (LIBOR +
5.000%) (G)		  $2,590,753   11/18/20    1,726,626    1,716,757 
6.00% First Lien Term Loan due 10/31/2027
(LIBOR + 5.000%) (G)		  $853,319   11/18/21    507,867    507,445 
Limited Liability Company Unit Class    41 uts.    11/19/20    41,109    41,485 
            2,275,602    2,265,687 

 

 

 

See Notes to Consolidated Financial Statements

 

 

22

2021 Annual Report

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
LYNX Franchising               
A global franchisor of B2B services including commercial janitorial services, shared office space solutions, and textile and electronics restoration services.
7.25% Term Loan due 12/18/2026 (LIBOR +
6.250%)		  $4,991,250   *   $4,905,103   $4,891,425 
* 12/22/2020 and 09/09/2021                  
                   
Manhattan Beachwear Holding Company                  
A designer and distributor of women’s swimwear.
12.5% Senior Subordinated Note due
05/30/2022 (D)		  $1,259,914   01/15/10    1,212,363    — 
15% (2.5% PIK) Senior Subordinated Note due
05/30/2022 (D)		  $345,759   10/05/10    343,820    — 
Common Stock (B)    106 shs.    10/05/10    106,200    — 
Common Stock Class B (B)    353 shs.    01/15/10    352,941    — 
Warrant, exercisable until 2023, to purchase
common stock at $.01 per share (B)		    312 shs.    10/05/10    283,738    — 
            2,299,062    — 
                   
Master Cutlery LLC                  
A designer and marketer of a wide assortment of knives and swords.
13% Senior Subordinated Note due
07/20/2022 (D)		  $1,736,205   04/17/15    1,735,060    173,621 
Limited Liability Company Unit    9 uts.    04/17/15    1,356,658    — 
            3,091,718    173,621 
                   
Media Recovery, Inc.                  
A global manufacturer and developer of shock, temperature, vibration, and other condition indicators and monitors for in-transit and storage applications.
7.00% First Out Term Loan due 11/22/2025
(LIBOR + 6.000%)		  $1,016,615   11/25/19    1,003,185    1,016,615 
                   
MES Partners, Inc.                  
An industrial service business offering an array of cleaning and environmental services to the Gulf Coast region of the U.S.
Preferred Stock Series A (B)    62,748 shs.    07/25/19    25,184    39,777 
Preferred Stock Series C (B)    2,587 shs.    09/22/20    927,966    — 
Common Stock Class B (B)    526,019 shs.    *    495,405    — 
Warrant, exercisable until 2030, to purchase
common stock at $.01 per share (B)		    713,980 shs.    09/22/20    —    — 
* 09/30/14 and 02/28/18.           1,448,555    39,777 

 

 

 

See Notes to Consolidated Financial Statements

 

 

23

Barings Corporate Investors

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
MeTEOR Education LLC               
A leading provider of classroom and common area design services, furnishings, equipment and instructional support to K-12 schools.
12% Senior Subordinated Note due 06/20/2023  $2,297,872   03/09/18   $2,284,138   $2,297,872 
Limited Liability Company Unit (B) (F)    456 uts.    03/09/18    459,574    364,937 
            2,743,712    2,662,809 
                   
MNS Engineers, Inc.                  
A consulting firm that provides civil engineering, construction management and land surveying services.
6.50% First Lien Term Loan due 07/30/2027
(LIBOR + 5.500%)		  $2,394,000   08/09/21    2,349,221    2,352,239 
Limited Liability Company Unit (B)    200,000 uts.    08/09/21    200,000    204,000 
            2,549,221    2,556,239 
                   
Motion Controls Holdings                  
A manufacturer of high performance mechanical motion control and linkage products.
Limited Liability Company Unit Class B-1 (B) (F)    225,000 uts.    11/30/10    —    40,500 
Limited Liability Company Unit Class B-2 (B) (F)    20,403 uts.    11/30/10    —    3,673 
            —    44,173 
                   
Music Reports, Inc.                  
An administrator of comprehensive offering of rights and royalties solutions for music and cue sheet copyrights to music and entertainment customers.
7.25% Term Loan due 08/21/2026 (LIBOR +
6.250%)		  $1,707,266   11/05/21    1,674,233    1,673,121 
7.00% Term Loan due 08/21/2026 (LIBOR +
6.000%)		  $1,243,465   08/25/20    1,219,376    1,218,596 
            2,893,609    2,891,717 
                   
Narda-MITEQ (JFL-Narda Partners, LLC)                  
A manufacturer of radio frequency and microwave components and assemblies.
6.25% Incremental Term Loan due 12/06/2027
(LIBOR + 5.250%) (G)		  $1,739,315   12/28/21    1,708,933    1,708,877 
6.25% First Lien Term Loan due 11/30/2027
(LIBOR + 5.250%) (G)		  $1,581,360   12/06/21    1,129,011    1,128,709 
Limited Liability Company Unit Class A
Preferred		    1,614 uts.    12/06/21    161,392    161,392 
Limited Liability Company Unit Class B
Common		    179 uts.    12/06/21    17,932    17,933 
            3,017,268    3,016,911 

 

 

 

See Notes to Consolidated Financial Statements

 

 

24

2021 Annual Report

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
National Auto Care               
A provider of professional finance and insurance products and consulting services to auto, RV, and powersports dealerships.
6.25% First Lien Term Loan due 09/28/2024
(LIBOR + 5.250%) (G)		  $1,997,415   12/20/21   $992,350   $992,055 
                   
Navia Benefit Solutions, Inc.                  
A third-party administrator of employee-directed healthcare benefits.
6.25%Term Loan due 02/01/2027 (LIBOR +
5.250%) (G)		  $3,489,500   02/10/21    2,334,264    2,365,363 
                   
Northstar Recycling                  
A managed service provider for waste and recycling services, primarily targeting food and beverage end markets.
5.75% Term Loan due 09/30/2027 (LIBOR +
4.750%)		  $1,559,129   10/01/21    1,529,256    1,527,946 
                   
Office Ally (OA TOPCO, LP)                  
A provider of medical claims clearinghouse software to office-based physician providers and healthcare insurance payers.
6.75% Term Loan due 12/10/2028 (LIBOR +
6.000%) (G)		  $1,966,351   12/20/21    1,660,961    1,660,775 
Limited Liability Company Unit    42,184 uts.    09/29/17    42,184    42,184 
            1,703,145    1,702,959 
                   
Omni Logistics, LLC                  
A specialty freight forwarding business specifically targeting the semiconductor, media, technology and healthcare end markets.
6.00% Term Loan due 12/30/2026 (LIBOR +
5.000%)		  $3,482,500   12/30/20    3,395,526    3,412,850 
                   
Options Technology Ltd                  
A provider of vertically focused financial technology managed services and IT infrastructure products for the financial services industry.
5.50% Term Loan due 12/18/2025 (LIBOR +
4.500%) (G)		  $3,302,114   12/23/19    3,258,256    3,236,071 

 

 

 

 

See Notes to Consolidated Financial Statements

 

 

25

Barings Corporate Investors

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
PANOS Brands LLC               
A marketer and distributor of branded consumer foods in the specialty, natural, better-for-you,“free from” healthy and gluten-free categories.
12% (1% PIK) Senior Subordinated Note due
12/29/2023		  $3,602,879   02/17/17   $3,593,122   $3,602,879 
Common Stock Class B (B)    772,121 shs.    *    772,121    727,292 
* 01/29/16 and 02/17/17.           4,365,243    4,330,171 
                   
PB Holdings LLC                  
A designer, manufacturer and installer of maintenance and repair parts and equipment for industrial customers.
5.47% Term Loan due 02/28/2024 (LIBOR +
5.250%)		  $1,629,751   03/06/19    1,612,502    1,569,451 
                   
Pearl Holding Group                  
A managing general agent that originates, underwrites, and administers non-standard auto insurance policies for carries in Florida.
9.00% First Lien Term Loan due 12/16/2026
(LIBOR + 6.000%) (G)		  $3,500,000   12/20/21    2,919,301    2,918,564 
Warrant – Class A, to purchase common stock
at $.01 per share		    1,874 uts.    12/22/21    —    — 
Warrant – Class B, to purchase common stock
at $.01 per share		    633 uts.    12/22/21    —    — 
Warrant  – Class CC, to purchase common
stock at $.01 per share		    65 uts.    12/22/21    —    — 
Warrant  – Class D, to purchase common
stock at $.01 per share		    167 uts.    12/22/21    —    — 
            2,919,301    2,918,564 
                   
Pegasus Transtech Corporation                  
A provider of end-to-end document, driver and logistics management solutions, which enable its customers (carriers, brokers, and drivers) to operate more efficiently, reduce manual overhead, enhance compliance, and shorten cash conversion cycles.
7.75% Term Loan due 08/31/2026 (LIBOR +
6.750%)		  $778,429   09/29/20    756,948    778,429 
7.75% Term Loan due 11/17/2024 (LIBOR +
6.500%)		  $3,842,523   11/14/17    3,803,016    3,842,523 
            4,559,964    4,620,952 
                   
Petroplex Inv Holdings LLC                  
A leading provider of acidizing services to E&P customers in the Permian Basin. 
Limited Liability Company Unit    1.51% int.    *    419,207    23,899 
* 11/29/12 and 12/20/16.                  

 

 

 

See Notes to Consolidated Financial Statements

 

 

26

2021 Annual Report

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
Polara (VSC Polara LLC)               
A manufacturer of pedestrian traffic management and safety systems, including accessible pedestrian signals, “push to walk” buttons, and related “traffic” control units.
5.75% First Lien Term Loan due 12/03/2027
(LIBOR + 4.750%) (G)		  $1,915,148   12/03/21   $1,659,258   $1,658,750 
Limited Liability Company Unit (F)    1,528 uts.    12/03/21    152,817    152,817 
            1,812,075    1,811,567 
                   
Polytex Holdings LLC                  
A manufacturer of water based inks and related products serving primarily the wall covering market.
13.9% (5.5% PIK) Senior Subordinated Note due
12/31/2024 (D)		  $2,170,983   07/31/14    2,159,212    2,062,434 
Limited Liability Company Unit    300,485 uts.    07/31/14    300,485    68,871 
Limited Liability Company Unit Class F    75,022 uts.    *    50,322    49,591 
* 09/28/17 and 02/15/18.           2,510,019    2,180,896 
                   
                   
Portfolio Group                  
A provider of professional finance and insurance products to automobile dealerships, delivering a suite of offerings that supplement earnings derived from vehicle transactions.
6.16% First Lien Term Loan due 12/02/2025
(LIBOR + 6.000%) (G)		  $2,450,000   11/15/21    1,919,558    1,918,000 
                   
PPC Event Services                  
A special event equipment rental business.       
Preferred Stock Series P-1 (B)    144 shs.    07/21/20    144,094    428,668 
Common Stock (B)    346,824 shs.    07/21/20    —    — 
16.00% Term Loan due 05/28/2023 (D)  $2,072,826   07/21/20    1,717,458    1,849,058 
8.00% Term Loan due 05/28/2023 (D)  $1,554,062   07/21/20    1,251,704    1,398,656 
Limited Liability Company Unit (B)    7,000 uts.    11/20/14    350,000    — 
Limited Liability Company Unit Series A-1 (B)    689 uts.    03/16/16    86,067    — 
            3,549,323    3,676,382 
                   
Recovery Point Systems, Inc.                  
A provider of IT infrastructure, colocation and cloud based resiliency services.
7.50% Term Loan due 07/31/2026 (LIBOR +
6.500%)		  $2,787,279   08/12/20    2,744,433    2,787,279 
Limited Liability Company Unit (F)    44,803 uts.    03/05/21    44,803    35,842 
            2,789,236    2,823,121 

 

 

See Notes to Consolidated Financial Statements

 

 

27

Barings Corporate Investors

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
RedSail Technologies               
A provider of pharmacy management software solutions for independent pharmacies and long-term care facilities.
6.25% Term Loan due 12/11/2027 (LIBOR +
5.500%)		  $3,334,545   12/09/20   $3,266,176   $3,334,545 
                   
ReelCraft Industries, Inc.                  
A designer and manufacturer of heavy-duty reels for diversified industrial, mobile equipment OEM, auto aftermarket, government/military and other end markets.
Limited Liability Company Unit Class B    595,745 uts.    11/13/17    374,731    1,692,538 
                   
Renovation Brands
A portfolio of seven proprietary brands that sell various home improvement products primarily through the e-Commerce channel.
6.50% Term Loan due 08/16/2027 (LIBOR +
5.500%)		  $1,941,748   11/15/21    1,894,290    1,893,204 
Limited Liability Company Unit    78,947 uts.    11/15/21    78,947    81,316 
            1,973,237    1,974,520 
                   
Resonetics, LLC                  
A provider of laser micro-machining manufacturing services for medical device and diagnostic companies.
7.75% Second Lien Term Loan due 04/28/2029
(LIBOR + 7.000%)		  $3,500,000   04/28/21    3,435,941    3,430,000 
7.16% Second Lien Term Loan due 04/28/2029
(LIBOR + 7.000%)		  $1,120,000   11/15/21    1,097,987    1,097,600 
            4,533,928    4,527,600 
                   
REVSpring, Inc.                  
A provider of accounts receivable management and revenue cycle management services to customers in the healthcare, financial and utility industries.
9.25% Second Lien Term Loan due 10/11/2026                  
(LIBOR + 8.250%)  $3,500,000   10/11/18    3,437,331    3,500,000 
                   
Rock-it Cargo                  
A provider of specialized international logistics solutions to the music touring, performing arts, live events, fine art and specialty industries.
6.00% Term Loan due 06/22/2024                  
(LIBOR + 5.000%)  $4,966,392   07/30/18    4,914,136    4,002,912 

 

 

 

See Notes to Consolidated Financial Statements

 

 

28

2021 Annual Report

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
ROI Solutions               
Call center outsourcing and end user engagement services provider.
6.00% Term Loan due 07/31/2024                  
(LIBOR + 5.000%) (G)  $3,702,981   07/31/18   $2,428,297   $2,460,158 
                   
RPX Corp                  
A provider of subscription services that help member companies mitigate the risk of patent disputes and reduce the cost of patent litigation.
7.00% Term Loan due 10/23/2025 (LIBOR +
6.000%)		  $4,977,859   *    4,885,680    4,875,505 
* 10/22/20 and 09/28/21.                  
                   
Ruffalo Noel Levitz                  
A provider of enrollment management, student retention and career services, and fundraising management for colleges and universities.
7.00% Term Loan due 05/29/2022 (LIBOR +
5.500%)		  $2,557,611   01/08/19    2,553,021    2,557,611 
                   
Safety Products Holdings, Inc.                  
A manufacturer of highly engineered safety cutting tools.
7.00% Term Loan due 12/15/2026 (LIBOR +
6.000%) (G)		  $3,393,093   12/15/20    3,330,030    3,316,748 
Common Stock (B)    59 shs.    12/16/20    59,372    81,348 
            3,389,402    3,398,096 
                   
Sandvine Corporation                  
A provider of active network intelligence solutions.
8.09% Second Lien Term Loan due 11/02/2026                  
(LIBOR + 8.000%)  $3,500,000   11/01/18    3,447,117    3,500,000 
                   
Sara Lee Frozen Foods                  
A provider of frozen bakery products, desserts and sweet baked goods.
5.50% First Lien Term Loan due 07/30/2025                  
(LIBOR + 4.500%)  $3,741,361   07/27/18    3,698,366    3,445,794 

 

 

 

See Notes to Consolidated Financial Statements

 

 

29

Barings Corporate Investors

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership

Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
Scaled Agile, Inc.               
A provider of training and certifications for IT professionals focused on software development.
6.50% Term Loan due 12/15/2027 (LIBOR +
5.500%) (G)		  $3,500,000   12/16/21   $2,377,869   $2,377,187 
                   
SEKO Worldwide, LLC                  
A third-party logistics provider of ground, ocean, air and home delivery forwarding services.
6.00% Term Loan due 12/30/2026 (LIBOR +
5.000%) (G)		  $3,470,091   12/30/20    2,887,280    2,908,949 
                   
Smart Bear                  
A provider of web-based tools for software development, testing and monitoring.
8.00% Second Lien Term Loan due 03/03/2029                  
(LIBOR + 7.500%)  $3,500,000   03/02/21    3,412,897    3,500,000 
                   
Smartling, Inc.                  
A provider in SaaS-based translation management systems and related translation services.
6.75% Term Loan due 10/26/2027 (LIBOR +
5.750%) (G)		  $3,500,000   11/03/21    2,814,088    2,812,353 
                   
Specified Air Solutions (dba Madison Indoor Air Solutions)                  
A manufacturer and distributor of heating, dehumidification and other air quality solutions.
Limited Liability Company Unit (B)    1,474,759 uts.    02/20/19    4,663,774    22,947,248 
                   
Springbrook Software                  
A provider of vertical-market enterprise resource planning software and payments platforms focused on the local government end-market.
6.50% Term Loan due 12/20/2026 (LIBOR +
5.500%)		  $3,398,842   12/23/19    2,722,533    2,764,799 
                   
Stackline                  
An e-commerce data company that tracks products sold through online retailers.
8.75% Term Loan due 07/30/2028 (LIBOR +
7.750%)		  $3,414,634   07/29/21    3,350,481    3,355,827 
Common Stock (B)    2,720 shs.    07/30/21    85,374    111,112 
            3,435,855    3,466,939 

 

 

See Notes to Consolidated Financial Statements

 

 

30

2021 Annual Report

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
Standard Elevator Systems               
A scaled manufacturer of elevator components combining four elevator companies, Standard Elevator Systems, EMI Porta, Texacone, and ZZIPCO.
6.50% First Lien Term Loan due 12/02/2027
(LIBOR + 5.750%) (G)		  $3,500,000   12/02/21   $1,888,586   $1,887,627 
                   
Strahman Holdings Inc.                  
A manufacturer of industrial valves and wash down equipment for a variety of industries, including chemical, petrochemical, polymer, pharmaceutical, food processing, beverage and mining.
Preferred Stock Series A (B)    317,935 shs.    12/13/13    317,935    467,711 
Preferred Stock Series A-2 (B)    53,086 shs.    09/10/15    59,987    78,094 
            377,922    545,805 
                   
Stratus Unlimited                  
A nationwide provide of brand implementation services, including exterior and interior signage, refresh and remodel, and facility maintenance and repair.
6.50% Term Loan due 06/08/2027 (LIBOR +
5.500%)		  $1,897,321   07/02/21    1,516,126    1,539,829 
Limited Liability Company Unit (B)    149 uts.    06/30/21    149,332    152,222 
            1,665,458    1,692,051 
                   
Sunvair Aerospace Group Inc.                  
An aerospace maintenance, repair, and overhaul provider servicing landing gears on narrow body aircraft.
12% (1-1.5% PIK) Senior Subordinated Note
due 08/01/2024		  $4,070,891   *    4,010,400    4,050,871 
Preferred Stock Series A (B)    58 shs.    12/21/20    144,411    183,006 
Common Stock (B)    139 shs.    **    213,007    441,055 
* 07/31/15 and 12/21/20.           4,367,818    4,674,932 
** 07/31/15 and 11/08/17.                  
                   
Syntax Systems Ltd                  
A cloud management service provider.
6.25% Term Loan due 10/14/2028 (LIBOR +
5.500%) (G)		  $2,000,000   10/28/21    1,480,120    1,479,591 
                   
Tencarva Machinery Company                  
A distributor of mission critical, engineered equipment, replacement parts and services in the industrial and municipal end-markets.
6.50% Term Loan due 12/20/2027 (LIBOR +
5.500%) (G)		  $4,114,175   12/20/21    2,937,510    2,937,116 

 

 

 

See Notes to Consolidated Financial Statements

 

 

31

Barings Corporate Investors

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
 
The Caprock Group (aka TA/TCG Holdings, LLC)
A wealth manager focused on ultra-high-net-worth individuals, who have $25-30 million of investable assets on average.
8.75% Holdco PIK Note due 10/21/2028  $2,333,333   10/28/21   $2,287,838   $2,286,667 
1.21% Term Loan due 12/15/2027 (LIBOR +
4.250%) (G)		  $1,166,667   12/21/21    198,195    198,093 
            2,486,033    2,484,760 
                   
The Hilb Group, LLC                  
An insurance brokerage platform that offers insurance and benefits programs to middle-market companies throughout the Eastern seaboard.
6.75% Term Loan due 12/02/2026 (LIBOR +
5.750%) (G)		  $3,461,906   *    3,400,064    3,392,667 
* 12/02/19 and 12/10/20.                  
                   
Therma-Stor Holdings LLC                  
A designer and manufacturer of dehumidifiers and water damage restoration equipment for residential and commercial applications.
Limited Liability Company Unit (B)    39,963 uts.    11/30/17    —    21,705 
                   
Transit Technologies LLC                  
A software platform for the transportation market that offers end-to-end software solutions focused on operations, fleet management and telematics services.
4.91% Term Loan due 02/10/2025 (LIBOR +
4.750%) (G)		  $2,123,205   02/13/20    1,600,486    1,572,670 
                   
Trident Maritime Systems                  
A leading provider of turnkey marine vessel systems and solutions for government and commercial new ship construction as well as repair, refurbishment, and retrofit markets worldwide.
6.50% Unitranche Term Loan due 02/26/2027
(LIBOR + 5.500%)		  $3,473,750   02/25/21    3,423,286    3,473,750 
                   
Tristar Global Energy Solutions, Inc.                  
A hydrocarbon and decontamination services provider serving refineries worldwide.
12.5% (1.5% PIK) Senior Subordinated Note due
03/31/2022 (D)		  $2,444,733   01/23/15    2,442,764    611,183 

 

 

 

See Notes to Consolidated Financial Statements

 

 

32

2021 Annual Report

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
Truck-Lite               
A leading provider of harsh environment LED safety lighting, electronics, filtration systems, and telematics for a wide range of commercial vehicles, specialty vehicles, final mile delivery vehicles, off-road/off-highway, marine, and other adjacent harsh environment markets.
7.25% Term Loan due 12/02/2026 (LIBOR +
6.250%) (G)		  $4,483,482   *    3,831,260    3,810,647 
6.47% First Lien Term Loan due 04/28/2029
(LIBOR + 6.250%)		  $516,518   11/15/21   $506,400   $506,188 
* 12/13/2019 and 11/15/2021.           4,337,660    4,316,835 
                   
Trystar, Inc.                  
A niche manufacturer of temporary power distribution products for the power rental, industrial, commercial utility and back-up emergency markets.
6.25% Term Loan due 10/01/2023 (LIBOR +
5.250%)		  $4,607,696   09/28/18    4,576,257    4,527,061 
5.90% Term Loan due 09/28/2023 (LIBOR +
5.750%)		  $374,660   10/27/21    368,582    368,103 
Limited Liability Company Unit (B) (F)    115 uts.    09/28/18    124,682    107,817 
            5,069,521    5,002,981 
                   
Turnberry Solutions, Inc.                  
A provider of technology consulting services.
7.00% Term Loan due 07/30/2026 (LIBOR +
6.000%)		  $3,389,494   07/29/21    3,327,458    3,331,120 
                   
U.S. Legal Support, Inc.                  
A provider of court reporting, record retrieval and other legal supplemental services.
6.75% Term Loan due 11/12/2024 (LIBOR +
5.750%)		  $4,347,430   *    4,305,185    4,347,430 
* 11/29/18 and 03/25/19.                  
                   
UroGPO, LLC                  
A group purchasing organization that connects pharmaceutical companies with urology practices to facilitate the purchase of pharmaceutical drugs for discounted prices.
6.75% Term Loan due 12/15/2026 (LIBOR +
5.750%)		  $4,633,333   12/14/20    4,556,823    4,633,333 

 

 

See Notes to Consolidated Financial Statements

 

 

33

Barings Corporate Investors

 

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2021

 

 

Corporate Restricted Securities: (A)
(Continued)		 

Principal Amount,
Shares, Units or
Ownership Percentage

  

Acquisition
Date

 

Cost

  

Fair Value

 
                
VitalSource               
A provider of digital fulfillment software for the higher education sector.
6.17% Term Loan due 06/01/2028 (LIBOR +
6.000%)		  $3,437,500   06/01/21   $3,374,504   $3,382,118 
Limited Liability Company Unit (B) (F)    3,837 uts.    06/01/21    38,367    39,883 
            3,412,871    3,422,001 
                   
VP Holding Company                  
A provider of school transportation services for special-needs and homeless children in Massachusetts and Connecticut.
6.50% First Lien Term Loan due 05/22/2024
(LIBOR + 5.500%)		  $4,860,686   05/17/18    4,822,024    4,782,380 
                   
Westminster Acquisition LLC                  
A manufacturer of premium, all-natural oyster cracker products sold under the Westminster and Olde Cape Cod brands.
Limited Liability Company Unit (B) (F)    751,212 uts.    08/03/15    751,212    25,317 
                   
Wolf-Gordon, Inc.                  
A designer and specialty distributor of wallcoverings and related building products, including textiles, paint, and writeable surfaces.
Common Stock (B)    318 shs.    01/22/16    126,157    534,399 
                   
Woodland Foods, Inc.                  
A provider of specialty dry ingredients such as herbs & spices, rice & grains, mushrooms & truffles, chilies, and other ingredients to customers within the industrial, foodservice, and retail end-markets.
6.50% Term Loan due 11/30/2027 (LIBOR +
5.500%) (G)		  $2,508,721   12/01/21    2,081,723    2,081,012 
Limited Liability Company Unit (F)    303.379 uts.    12/01/21    303,379    303,379 
            2,385,102    2,384,391 
                   
World 50, Inc.                  
A provider of exclusive peer-to-peer networks for C-suite executives at leading corporations.
6.25% Term Loan due 01/10/2026 (LIBOR +
5.250%)		  $784,851   09/21/20    766,973    784,850 
5.50% Term Loan due 12/31/2025 (LIBOR +
4.500%)		  $2,510,123   01/09/20    2,468,021    2,472,472 
            3,234,994    3,257,322 
                   
                   
Total Private Placement Investments (E)          $315,776,594   $330,680,099 

 

 

 

 

See Notes to Consolidated Financial Statements

 

 

34