Click here to close now.




















Welcome!

News Feed Item

Golub Capital BDC, Inc. Declares Fourth Fiscal Quarter Distribution of $0.32 Per Share and Announces Third Fiscal Quarter Financial Results

CHICAGO, Aug. 7, 2014 /PRNewswire/ -- Golub Capital BDC, Inc., a business development company (NASDAQ: GBDC), today announced its financial results for the third fiscal quarter ended June 30, 2014.

Except where the context suggests otherwise, the terms "we," "us," "our," and "Company" refer to Golub Capital BDC, Inc. and its consolidated subsidiaries.  "GC Advisors" refers to GC Advisors LLC, our investment adviser.

SELECTED FINANCIAL HIGHLIGHTS








(in thousands, expect per share data)









June 30, 2014


March 31, 2014

Investment portfolio, at fair value

$                   1,324,890


$              1,253,597

Total assets

$                   1,462,113


$              1,321,644

Net asset value per share

$                          15.44


$                     15.41






Quarter Ended


June 30, 2014


March 31, 2014

Investment income

$                       28,029


$                   25,260

Net investment income

$                       15,073


$                   13,352

Net gain on investments and secured borrowings

$                         1,207


$                        737

Net increase in net assets resulting from operations

$                       16,280


$                   14,089





Net investment income per share

$                           0.32


$                       0.31

Net gain on investments and secured borrowings per share

$                           0.03


$                       0.01

Net earnings per share

$                           0.35


$                       0.32

Third Fiscal Quarter 2014 Highlights

  • Net investment income for the quarter ended June 30, 2014 was $15.1 million, or $0.32 per share, as compared to $13.3 million, or $0.31 per share, for the quarter ended March 31, 2014;
  • Net gain on investments and secured borrowings for the quarter ended June 30, 2014 was $1.2 million, or $0.03 per share, as compared to $0.7 million, or $0.01 per share, for the quarter ended March 31, 2014;
  • Net increase in net assets resulting from operations for the quarter ended June 30, 2014 was $16.3 million, or $0.35 per share, as compared to $14.1 million, or $0.32 per share, for the quarter ended March 31, 2014; and
  • Our board of directors declared a quarterly distribution on August 5, 2014 of $0.32 per share, payable on September 26, 2014 to stockholders of record as of September 16, 2014.

Portfolio and Investment Activities

As of June 30, 2014, the Company had investments in 146 portfolio companies with a total fair value of $1,290.5 million and had investments in subordinated notes and limited liability company ("LLC") interests in Senior Loan Fund LLC ("SLF") with a total fair value of $34.4 million.  This compares to the Company's portfolio as of March 31, 2014, as of which date the Company had investments in 139 portfolio companies with a total fair value of $1,211.9 million and had investments in subordinated notes and LLC interests in SLF with a total fair value of $41.7 million.  Investments in portfolio companies as of June 30, 2014 and March 31, 2014 consisted of the following:



Investments at Fair Value



(In thousands)

Investment


As of


As of

Type


June 30, 2014


March 31, 2014

Senior secured


$               289,390


$               282,229

One stop


866,413


773,625

Second lien


86,784


111,799

Subordinated debt


4,164


4,164

Equity


43,742


40,071






Total


$            1,290,493


$            1,211,888

For the quarter ended June 30, 2014, the Company originated $155.7 million in new middle-market investment commitments and invested $3.0 million in SLF, making total new investment commitments $158.7 million for the quarter.  Approximately 18% of the new total investment commitments were senior secured loans, 79% were one stop loans, 1% was equity securities and 2% were investments in SLF.  Overall, total investments at fair value increased by $71.3 million during the quarter ended June 30, 2014 after factoring in debt repayments, sales of securities, net fundings on revolvers and net change in unrealized gains (losses).

For the quarter ended June 30, 2014, the weighted average annualized investment income yield (which includes interest and fee income and amortization of capitalized fees and discounts) and the weighted average annualized income yield (which excludes income resulting from amortization of capitalized fees and discounts) on the fair value of earning investments in the Company's portfolio were 8.9% and 8.3%, respectively.

Consolidated Results of Operations

Total investment income for the quarter ended June 30, 2014 and March 31, 2014 was $28.0 million and $25.2 million, respectively.  This $2.8 million increase was primarily attributable to an increase in the average earning investment balance, higher fee income from prepayments and higher dividend income in the quarter ended June 30, 2014. 

Total expenses for the quarter ended June 30, 2014 and March 31, 2014 were $13.0 million and $11.9 million, respectively.  This $1.1 million increase was primarily due to a $1.1 million increase in interest and other debt financing expenses resulting from an increase in the average outstanding borrowing balance and an increase in the amortization of capitalized debt issuance costs.  The increase in amortization of capitalized debt issuance costs is primarily due to additional capitalized debt issuance costs associated with the Company's $402.6 million term debt securitization completed on June 5, 2014 and the acceleration of capitalized debt issuance costs resulting from the downsize of our senior secured revolving credit facility.

During the quarter ended June 30, 2014, the Company recorded a net realized gain of less than $0.1 million and recorded net unrealized appreciation of $1.2 million.  The net unrealized appreciation was primarily related to net unrealized appreciation on several middle-market debt and equity investments.

Liquidity and Capital Resources

The Company's liquidity and capital resources are derived from the Company's debt securitizations, U.S. Small Business Administration ("SBA") debentures, revolving credit facilities and cash flow from operations.  The Company's primary uses of funds from operations include investment in portfolio companies and payment of fees and other expenses that the Company incurs.  The Company has used, and expects to continue to use, its debt securitizations, SBA debentures, revolving credit facilities, proceeds from its investment portfolio and proceeds from offerings of its securities to finance its investment objectives. 

As of June 30, 2014, the Company had cash and cash equivalents of $11.4 million, restricted cash and cash equivalents of $109.8 million and $723.6 million of debt and secured borrowings outstanding.   As of June 30, 2014, the Company had $131.5 million of commitments and $52.8 million available for additional borrowings on its revolving credit facilities, subject to leverage and borrowing base restrictions.  As of June 30, 2014, the Company had $16.2 million of additional SBA debentures available, subject to customary SBA regulatory requirements.

On August 5, 2014, the Company's board of directors declared a quarterly distribution of $0.32 per share, payable on September 26, 2014 to holders of record as of September 16, 2014.

Portfolio and Asset Quality

GC Advisors regularly assesses the risk profile of each of the Company's investments and rates each of them based on an internal system developed by Golub Capital and its affiliates.  This system is not generally accepted in our industry or used by our competitors.  It is based on the following categories, which we refer to as GC Advisors' internal performance rating:




Internal Performance Ratings

Rating


Definition

5


Involves the least amount of risk in our portfolio. The borrower is performing above expectations, and the trends and risk factors are generally favorable.

4


Involves an acceptable level of risk that is similar to the risk at the time of origination. The borrower is generally performing as expected, and the risk factors are neutral to favorable.

3


Involves a borrower performing below expectations and indicates that the loan's risk has increased somewhat since origination. The borrower may be out of compliance with debt covenants; however, loan payments are generally not past due.

2


Involves a borrower performing materially below expectations and indicates that the loan's risk has increased materially since origination. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due (but generally not more than 180 days past due).

1


Involves a borrower performing substantially below expectations and indicates that the loan's risk has substantially increased since origination. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Loans rated 1 are not anticipated to be repaid in full and we will reduce the fair market value of the loan to the amount we anticipate will be recovered.

Our internal performance ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments. 

The following table shows the distribution of the Company's investments on the 1 to 5 internal performance rating scale at fair value as of June 30, 2014 and March 31, 2014:













June 30, 2014


March 31, 2014


Internal


Investments


Percentage of


Investments


Percentage of


Performance


at Fair Value


Total


at Fair Value


Total


Rating


(In thousands)


Investments


(In thousands)


Investments


5


$           305,316


23.0

%

$           251,829


20.1

%

4


949,643


71.7


937,477


74.8


3


65,257


4.9


61,918


4.9


2


4,459


0.4


1,857


0.2


1


215


-

*

516


-

*

Total


$        1,324,890


100.0

%

$        1,253,597


100.0

%











* Represents an amount less than 0.1%.
















Conference Call

The Company will host an earnings conference call at 12:30 p.m. (Eastern Time) on Thursday, August 7, 2014 to discuss the quarterly financial results.  All interested parties may participate in the conference call by dialing (800) 891-8257 approximately 10-15 minutes prior to the call; international callers should dial (212) 231-2929.  Participants should reference Golub Capital BDC, Inc. when prompted.  For a slide presentation that we intend to refer to on the earnings conference call, please visit the Investor Relations link on the homepage of our website (www.golubcapitalbdc.com) and click on the Quarter Ended 06.30.14 Investor Presentation under Events and Presentations.  An archived replay of the call will be available shortly after the call until 2:30 p.m. (Eastern Time) on September 6, 2014.  To hear the replay, please dial (800) 633-8284. International dialers, please dial (402) 977-9140.  For all replays, please reference program ID number 21727461.

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(In thousands, except share and per share data)






June 30, 2014


March 31, 2014

Assets

(unaudited)


(unaudited)

Investments, at fair value (cost of $1,309,706 and $1,239,603, respectively)

$ 1,324,890


$ 1,253,597

Cash and cash equivalents

11,392


12,810

Restricted cash and cash equivalents

109,818


41,261

Interest receivable

5,222


4,958

Deferred financing costs

10,514


8,712

Other assets

277


306

Total Assets

$ 1,462,113


$ 1,321,644





Liabilities




Debt

$ 703,300


$ 572,150

Secured borrowings, at fair value (proceeds of $20,064 and $18,008, respectively)

20,264


18,222

Interest payable

3,689


1,691

Management and incentive fees payable

5,897


5,736

Accounts payable and accrued expenses

2,140


1,842

Accrued trustee fees

49


73

Total Liabilities

735,339


599,714





Net Assets




Preferred stock, par value $0.001 per share, 1,000,000 shares authorized,
 
zero shares issued and outstanding as of June 30, 2014 and March 31, 2014




-


-

Common stock, par value $0.001 per share, 100,000,000 shares authorized, 47,065,030
 
and 46,857,608 shares issued and outstanding as of June 30, 2014 and March 31, 2014,
 
respectively







47


47

Paid in capital in excess of par

718,760


715,148

Undistributed net investment income

1,647


1,622

Net unrealized appreciation (depreciation) on investments, derivative instruments
 
and secured borrowings




17,652


16,446

Net realized gain (loss) on investments and derivative instruments

(11,332)


(11,333)

Total Net Assets

726,774


721,930

Total Liabilities and Total Net Assets

$ 1,462,113


$ 1,321,644





Number of common shares outstanding

47,065,030


46,857,608

Net asset value per common share

$ 15.44


$ 15.41

 

 

Consolidated Statements of Operations

(In thousands, except share and per share data)



Three months ended



June 30, 2014


March 31, 2014



(unaudited)

Investment income



  Interest income


$                          26,035


$                          24,977

  Dividend income


952


262

  Fee income


1,042


21






Total investment income


28,029


25,260






Expenses





  Interest and other debt financing expenses


5,609


4,540

  Base management fee


4,394


4,185

  Incentive fee 


1,607


1,656

  Professional fees


578


640

  Administrative service fee


655


742

  General and administrative expenses


113


145






Total expenses


12,956


11,908






Net investment income


15,073


13,352






Net gain (loss) on investments





  Net realized gain (loss) on investments


1


87

  Net change in unrealized appreciation (depreciation) on investments





 and secured borrowings


1,206


650






Net gain (loss) on investments and secured borrowings


1,207


737






Net increase in net assets resulting from operations


$                          16,280


$                          14,089






Per Common Share Data





  Basic and diluted earnings per common share


$                               0.35


$                               0.32

  Dividends and distributions declared per common share


$                               0.32


$                               0.32

  Basic and diluted weighted average common shares outstanding


46,985,908


43,754,776

 

ABOUT GOLUB CAPITAL BDC, INC.

Golub Capital BDC, Inc. invests primarily in senior secured, one stop, second lien and subordinated loans of, and warrants and minority equity securities in, middle-market companies that are, in most cases, sponsored by private equity investors. Golub Capital BDC, Inc.'s investment activities are managed by its investment adviser, GC Advisors LLC, an affiliate of the Golub Capital group of companies ("Golub Capital").

ABOUT GOLUB CAPITAL

With over $10 billion of capital under management, Golub Capital is a leading provider of financing solutions for the middle market, including one-loan financings (through the firm's proprietary MiniGOLD, GOLD, and MegaGOLD facilities), senior, second lien, and subordinated debt, preferred stock and co-investment equity. The firm underwrites and syndicates senior credit facilities up to $300 million. Golub Capital's hold sizes range up to $200 million per transaction.

Golub Capital has been a top 3 Traditional Middle Market Bookrunner each year from 2008 through 1Q 2014 for senior secured loans of up to $100 million for leveraged buyouts (according to Thomson Reuters LPC and internal data; based on number of deals). In 2013, Golub Capital was awarded Finance Monthly's Global Awards 2013 "Credit Asset Manager of the Year," and DealMakers M&A Awards 2013 "Middle Market Lender of the Year." In 2012, Golub Capital was awarded ACG New York Champion's Award for "Senior Lender Firm of the Year" and the M&A Advisor award for "Lender Firm of the Year." Golub Capital is a national firm with principal offices in Chicago and New York. For more information, please visit the firm's website at www.golubcapital.com.

FORWARD-LOOKING STATEMENTS

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. Golub Capital BDC, Inc. undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

SOURCE Golub Capital BDC, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Trel...
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises ar...
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so the...
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
Moving an existing on-premise infrastructure into the cloud can be a complex and daunting proposition. It is critical to understand the benefits as well as the challenges associated with either a full or hybrid approach. In his session at 17th Cloud Expo, Richard Weiss, Principal Consultant at Pythian, will present a roadmap that can be leveraged by any organization to plan, analyze, evaluate and execute on a cloud migration solution. He will review the five major cloud transformation phases a...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device acce...