Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q1 FY2022 Earnings Presentation
24 slides from Golub Capital Bdc's earnings presentation, Feb 9, 2022
Slide 1: Golub Capital BDC, Inc. Investor Presentation, Quarter Ended December 31, 2021
CONFIDE NT IAL | FOR DISCUSSION PURPOSES ONLY GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED DECEMBER 31, 2021
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation involve risks and uncertainties, including statements as to: our
Slide 3: Summary of Financial Results
Summary of Financial Results
Slide 4: Summary of Financial Results vs. Prior Quarter
Summary of Financial Results vs. Prior Quarter 4 1. On September 16, 2019, Golub Capital BDC, Inc. (“we”, “us”, “our”, the “Company” or “GBDC”) completed the acquisition of Golub Capital Investment Corporation (“GCIC”). Purchase premium refers to the premium paid by GBDC to acquire GCIC in excess of
Slide 5: GBDC Performance Drivers
GBDC Performance Drivers O ? GOLUB CAPITAL a
Slide 6: GBDC's Strong Earnings Were Driven by a Continuation of Themes from the Prior Quarter
GBDC’s Strong Earnings Were Driven by a Continuation of Themes from the Prior Quarter 6 GBDC portfolio companies generally continued to perform well ‒ Improved internal performance ratings2 ‒ Low non-accruals3 ‒ Solid net realized and unrealized gains4 Robust net originations at GBDC allowed us
Slide 7: Strong Realized Gains Drove a NAV Per Share Increase
$15.19 $15.26 $0.27 $0.04 $0.08 $0.02 ($0.30) ($0.04) September 30, 2021 NAV Net Investment Income Reversal of Amortization of Purchase Premium¹ Dividend Paid During December 31, 2021 Quarter Net Realized Gain on Investments Net Change in Unrealized Appreciation on Investments Net Reversal of Realiz
Slide 8: Summary of Financial Results for the Quarter Ended
Summary of Financial Results for the Quarter Ended December 31, 2021
Slide 9: Net Investment Income, Gains and NAV Per Share by Quarter
9 Quarter Ended December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 Net Investment Income Per Share Net investment income per share $0.23 $0.24 $0.25 $0.27 $0.27 Amortization of purchase premium per share1 0.06 0.05 0.04 0.03 0.04 Adjusted net investment income per sh
Slide 10: Select Portfolio Funds Roll Data
Quarter Ended December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 Select Portfolio Funds Roll Data (in millions) New Investment Commitments $526.8 $234.7 $614.7 $971.4 $867.7 Exits and Sales of Investments 278.7 347.5 583.5 383.8 661.8 Net Funds Growth1 269.0 (112.0)
Slide 11: Portfolio Highlights – Investment Mix
Portfolio Highlights – Investment Mix 11 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 1% Historical Investment Portfolio ($000) 1. Junior D
Slide 12: Portfolio Highlights – Portfolio Diversity
Portfolio Highlights – Portfolio Diversity as of December 31, 2021 12 * Represents an amount less than 0.5%. 1. Junior Debt is comprised of second lien and subordinated debt. 2. The percentage of fixed rate loans and floating rate loans is calculated using total debt investments at fair value and ex
Slide 13: Investment Income Yield, Cost of Debt and Net Investment Spread
1. The weighted average cost of debt and weighted average net investment spread presented for the quarter ended September 30, 2021 exclude $3.6 million of accelerated capitalized debt issuance costs that resulted from the August 26, 2021 early redemption of notes issued by the 2020 Debt Securitizati
Slide 14: Portfolio Highlights – Credit Quality
Portfolio Highlights – Credit Quality 14 − As of December 31, 2021, non-accrual investments remained low at 1.2% and 0.9% as a percentage of total investments at cost and fair value, respectively, a slight decrease from the prior quarter. − During the quarter ended December 31, 2021, the number of n
Slide 15: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings 15 − Due to continued improvement in borrower performance, the percentage of risk rated “3” investments decreased to 6.6% of the portfolio at fair value as of December 31, 2021 from 8.1% as of September 30, 2021. * Represents an amount less than 0.1%. Interna
Slide 16: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition 16 1. On September 13, 2011, the Company received exemptive relief from the SEC to permit the Company to exclude the debt of its small business investment company (“SBIC”) subsidiaries from its asset coverage test. As such, asset coverage and regulatory le
Slide 17: Quarterly Operating Results
Quarterly Operating Results 17 Quarter Ended (Dollar amounts in 000s, except share and per share data) December 31, 2020 (unaudited) March 31, 2021 (unaudited) June 30, 2021 (unaudited) September 30, 2021 (unaudited) December 31, 2021 (unaudited) Investment Income Interest income $82,209 $83,728 $81
Slide 18: Financial Performance Highlights
Financial Performance Highlights 18 * The quarterly return on equity for the periods up to and including the quarter ended June 30, 2019are calculated as (a) the net increase in net assets resulting from operations (i.e., net income) for the period presented divided by (b) the daily average of total
Slide 19: Long History of Strong Shareholder Returns
19 Long History of Strong Shareholder Returns Investors in GBDC’s 2010 IPO have achieved a 10.0% IRR on NAV1 1. Internal rate of return (“IRR”) on NAV is calculated using beginning of period NAV, distributions paid during the period, an incremental investment of $2.29 per share, or the GBDC Rights O
Slide 20: Liquidity and Investment Capacity
Liquidity and Investment Capacity 20 Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $182.7 million as of December 31, 2021. − Restricted cash, cash equivalents and foreign currencies totaled $118.8 million as of December 31, 2021. Restricted cash is
Slide 21: Post-COVID Initiatives Have Enhanced GBDC's Liability Structure
Post-COVID Initiatives Have Enhanced the Flexibility, Term and Durability of GBDC’s Liability Structure 21 Funding Source Debt Commitment Outstanding Par Undrawn Commitment Reinvestment Period Stated Maturity Interest Rate1 Securitizations: 2018 Debt Securitization $ 408,200 $ 408,200 $ - January 20
Slide 22: Common Stock and Distribution Information
Common Stock and Distribution Information 22 Common Stock Data1 Distribution Data Date Declared Record Date Payment Date Amount Per Share Frequency Total Amount (in 000s) February 4, 2020 March 6, 2020 March 27, 2020 $0.33 Quarterly $44,156 April 9, 2020 June 9, 2020 June 29, 2020 $0.29 Quarterly $4
Slide 23: Appendix: Endnotes
Appendix: Endnotes GOLUB CAPITAL a
Slide 24: Endnotes
1. On September 16, 2019, the Company completed its acquisition of GCIC. The merger was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805-50, Business Combinations — Related Issues. Under asset acquisition accounting, wher