Golub Capital BDC, Inc. Declares Fiscal Year 2015 Third Quarter Distribution of $0.32 Per Share and Announces Fiscal Year 2015 Second Quarter Financial Results

CHICAGO, May 11, 2015 /PRNewswire/ -- Golub Capital BDC, Inc., a business development company (NASDAQ: GBDC), today announced its financial results for its second fiscal quarter ended March 31, 2015.

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.

Second Fiscal Quarter 2015 Highlights

• Net increase in net assets resulting from operations for the quarter ended March 31, 2015 was $17.9 million, or $0.38 per share, as compared to $15.2 million, or $0.32 per share, for the quarter ended December 31, 2014;
• Net gain on investments and secured borrowings for the quarter ended March 31, 2015 was $4.1 million, or $0.09 per share, as compared to $0.6 million, or $0.01 per share, for the quarter ended December 31, 2014;
• Net investment income for the quarter ended March 31, 2015 was $13.8 million, or $0.29 per share, as compared to $14.6 million, or $0.31 per share, for the quarter ended December 31, 2014;
• Net investment income for the quarter ended March 31, 2015, excluding a $1.0 million, or $0.02 per share, accrual under U.S. generally accepted accounting principles for a capital gains incentive fee, was $14.8 million, or $0.31 per share; and
• Our board of directors declared a quarterly distribution on May 11, 2015 of $0.32 per share, payable on June 29, 2015 to stockholders of record as of June 18, 2015.

Portfolio and Investment Activities

As of March 31, 2015, the Company had investments in 146 portfolio companies with a total fair value of $1,366.0 million and had investments in subordinated notes and limited liability company ("LLC") equity interests in Senior Loan Fund LLC ("SLF") with a total fair value of $57.0 million. This compares to the Company's portfolio as of December 31, 2014, as of which date the Company had investments in 147 portfolio companies with a total fair value of $1,361.0 million and had investments in subordinated notes and LLC equity interests in SLF with a total fair value of $39.7 million. Investments in portfolio companies, excluding SLF, as of March 31, 2015 and December 31, 2014 consisted of the following:

The following table shows the asset mix of our new investment commitments for the three months ended March 31, 2015:

Overall, total investments at fair value increased by $22.3 million during the three months ended March 31, 2015 after factoring in debt repayments, sales of securities, net fundings on revolvers and net change in unrealized gains (losses). Total investments at fair value held by SLF increased by $67.5 million after factoring in debt repayments, sales of securities, net fundings on revolvers, and net change in unrealized gains (losses).

For the three months ended March 31, 2015, 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 income producing investments in the Company's portfolio were 8.4% and 7.9%, respectively.

Consolidated Results of Operations

Total investment income for the quarters ended March 31, 2015 and December 31, 2014 was $28.5 million and $27.5 million, respectively. This $1.0 million increase was primarily attributable to higher prepayment fees and dividend income earned during the quarter ended March 31, 2015.

Total expenses for the quarters ended March 31, 2015 and December 31, 2014 were $14.7 million and $13.0 million, respectively. This $1.7 million increase was primarily attributable to a $1.0 million accrual for a capital gain incentive fee under GAAP as a result of realized gains on equity investments and market appreciation on debt and equity investments.

During the quarter ended March 31, 2015, the Company recorded a net realized gain of $4.5 million and recorded net unrealized depreciation of $0.4 million. The realized gains mainly related to the sale of two equity investments. The net unrealized depreciation included the reversal of the net unrealized appreciation on the two equity investments that were sold during the quarter, offset by net unrealized appreciation on several middle market debt and equity securities.

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 March 31, 2015, the Company had cash and cash equivalents of $3.1 million, restricted cash and cash equivalents of $54.5 million and $754.5 million of debt and secured borrowings outstanding. As of March 31, 2015, the Company had $80.3 million of remaining commitments and $38.4 million available for additional borrowings on its revolving credit facilities, subject to leverage and borrowing base restrictions. As of March 31, 2015, the Company had $16.2 million of additional SBA debentures available, subject to customary SBA regulatory requirements.

On April 10, 2015, the Company priced a public offering of 3.5 million shares of its common stock at a public offering price of $17.42 per share, raising $59.1 million in net proceeds after underwriting discounts and commissions. On May 7, 2015, the Company sold an additional 502,292 shares of its common stock at a public offering price of $17.42 per share pursuant to the underwriters' partial exercise of the option granted in connection with the public offering in April 2015.

On May 11, 2015, the Company's board of directors declared a quarterly distribution of $0.32 per share, payable on June 29, 2015 to holders of record as of June 18, 2015.

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:

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 March 31, 2015 and December 31, 2014:

Conference Call

The Company will host an earnings conference call at 9:00 a.m. (Eastern Time) on Tuesday, May 12, 2015 to discuss the quarterly financial results. All interested parties may participate in the conference call by dialing (800) 745-9830 approximately 10-15 minutes prior to the call; international callers should dial (212) 231-2908. 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 3.31.15 Investor Presentation under Events/Presentations. An archived replay of the call will be available shortly after the call until 11:00 a.m. (Eastern Time) on June 11, 2015. To hear the replay, please dial (800) 633-8284. International dialers, please dial (402) 977-9140. For all replays, please reference program ID number 21766929.

ABOUT GOLUB CAPITAL BDC, INC.

Golub Capital BDC, Inc. ("Golub Capital BDC") is an externally-managed, non-diversified closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Golub Capital BDC invests primarily in senior secured, one stop, second lien and subordinated loans of middle-market companies that are often sponsored by private equity investors. Golub Capital BDC'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

Golub Capital is a nationally recognized credit asset manager with over $10 billion of capital under management. Golub Capital has three highly complementary business lines: Middle Market Lending, Broadly Syndicated Loans and Opportunistic Credit. Golub Capital's lending offices are located in Chicago, New York and San Francisco. 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.

Related Links

http://www.golubcapitalbdc.com