Golub Capital BDC, Inc. Announces Preliminary Fiscal Year 2024 Second Quarter Financial Results and Declares Fiscal Year 2024 Third Quarter Distribution of $0.39 Per Share
“GBDC had another very strong quarter. Record Adjusted Net Investment Income per share reflected both continued strong operating performance and the impact of the previously announced unilateral waiver to reduce the incentive fee rate that took effect on
Except where the context suggests otherwise, the terms “GBDC”, “we,” “us,” “our,” and “Company” refer to
Set forth in the table below are certain preliminary estimates of our financial condition and results of operations for the three months ended
PRELIMINARY ESTIMATES OF CERTAIN FINANCIAL RESULTS |
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Estimated Ranges for the three months ended |
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Net Investment Income Per Share |
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Net investment income per share |
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$ |
0.50 |
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$ |
0.52 |
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Amortization of purchase premium per share1 |
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0.00 |
* |
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0.00 |
* |
Adjusted net investment income per share1 |
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0.50 |
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0.52 |
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Accrual (reversal) for capital gain incentive fee per share |
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— |
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— |
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Adjusted net investment income before accrual for capital gain incentive fee per share1 |
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0.50 |
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0.52 |
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Net realized/unrealized gain/(loss) per share |
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Net realized/unrealized gain/(loss) per share |
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0.03 |
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0.05 |
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Reversal of unrealized loss resulting from the purchase premium per share1 |
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(0.00 |
)* |
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(0.00 |
)* |
Adjusted net realized/unrealized gain/(loss) per share1 |
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0.03 |
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0.05 |
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Earnings/(loss) per share |
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Earnings per share |
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0.53 |
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0.57 |
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Adjusted earnings/(loss) per share1 |
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0.53 |
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0.57 |
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Return on Equity |
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Adjusted net investment income return on equity2 |
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13.2 |
% |
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13.7 |
% |
Adjusted return on equity3 |
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14.0 |
% |
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15.1 |
% |
* Represents an amount less than |
Based on the estimated range of earnings per share in the table above, the Company is estimating a net asset value per share between
Net Asset Value Per Share |
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Actual net asset value per share, |
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$ |
15.03 |
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$ |
15.03 |
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Estimated Earnings per share for the three months ended |
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0.53 |
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0.57 |
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Supplemental Distribution paid on |
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(0.07 |
) |
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(0.07 |
) |
Quarterly Distribution paid on |
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(0.39 |
) |
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(0.39 |
) |
Estimated net asset value per share, |
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$ |
15.10 |
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$ |
15.14 |
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Other Second Fiscal Quarter 2024 Preliminary Estimates
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During the three months ended
March 31, 2024 , the Company originated$22.1 million in new middle-market investment commitments. Approximately 96% of the new middle-market investment commitments were one stop loans, 2% were senior secured loans, 2% were equity and other securities and an amount less than 1% were subordinated debt loans. Of the new middle-market investment commitments,$9.6 million funded at close. Total investments at fair value are estimated to have decreased by approximately$49.0 million during the three months endedMarch 31, 2024 after factoring in debt repayments, sales of securities, net fundings on revolvers, and net change in unrealized gains (losses). -
The Company estimates that our GAAP debt-to-equity ratio, net4 decreased to 1.17x as of
March 31, 2024 . OnApril 8, 2024 , the Company redeemed$500.0 million in aggregate principal amount of its 3.375% Notes due in 2024 (the “2024 Notes”). The 2024 Notes were redeemed at 100% of their principal amount, plus the accrued and unpaid interest thereon. OnApril 22, 2024 , the Company made repayments totaling$126.0 million on the notes of its$602 million term debt securitization (the “2018 Debt Securitization”) and its$908 million term debt securitization (the “GCIC 2018 Debt Securitization”). After giving pro forma effect to the full redemption of the 2024 Notes and principal repayments on the 2018 Debt Securitization and GCIC 2018 Debt Securitization, the Company’s GAAP debt-to-equity ratio, net4 would have decreased to 1.12x as ofMarch 31, 2024 . -
The Company estimates that non-accrual investments as a percentage of total investments at fair value and cost decreased to approximately 0.9% and 1.5%, respectively, from 1.1% and 1.7%, respectively, as of
December 31, 2023 . Additionally, the Company estimates that the number of non-accrual investments remained at nine investments as ofMarch 31, 2024 , as the disposition of one portfolio company investment and the return to accrual status of two portfolio company investments was offset by the addition of three portfolio company investments. -
On
April 12, 2024 , the Company filed an amended registration statement on Form N-14, which included a joint proxy statement of the Company andGolub Capital BDC 3, Inc. (“GBDC 3”) and a prospectus of the Company, in connection with the Company’s proposed merger with GBDC 3. The registration statement was declared effective by theSEC onApril 15, 2024 and the special meetings for each of the Company’s and GBDC 3’s stockholders are scheduled forMay 29, 2024 . We remain excited about the proposed merger with GBDC 3, which we anticipate to close shortly after the special meetings, subject to stockholder approvals and other customary closing conditions. -
On
April 19, 2024 , our board of directors declared a quarterly distribution of$0.39 per share, which is payable onJune 21, 2024 to stockholders of record as ofMay 2, 2024 .
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1 |
On |
As a supplement to |
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The Company believes that excluding the financial impact of the purchase premium write down in the above non-GAAP financial measures is useful for investors as it is a non-cash expense/loss resulting from the acquisition of GCIC and is one method the Company uses to measure its financial condition and results of operations. In addition, the Company believes excluding the accrual of the capital gain incentive fee under GAAP is useful as a portion of such accrual is not contractually payable under the terms of the Company’s investment advisory agreement with |
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2 |
Adjusted net investment income return on equity is calculated as (1) (a) the adjusted net investment income per share (b) annualized by multiplying by four and (2) divided by the estimated net asset value per share. |
3 |
Adjusted return on equity is calculated as (1) (a) the adjusted earnings/(loss) per share (b) annualized by multiplying by four and (2) divided by the estimated net asset value per share. |
4 |
GAAP debt to equity, net is calculated as (1) total debt reduced by available cash, cash equivalents, and foreign currencies, divided by (2) total net assets. |
Conference Call
The Company will host an earnings conference call at
ABOUT
ABOUT GOLUB CAPITAL
As of
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
Source:
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312-212-4036
cericson@golubcapital.com
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