Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q4 2016 Earnings Presentation
17 slides from Golub Capital Bdc's earnings presentation, Nov 16, 2016
Slide 1: Investor Presentation, Quarter Ended September 30, 2016
0 GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION Quarter Ended September 30, 2016 GOLUBCAPITALBDC.COM GBDC
Slide 2: Disclaimer
1 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: o
Slide 3: Summary of Quarterly Results
2 SUMMARY OF QUARTERLY RESULTS Fourth Fiscal Quarter 2016 Highlights Net increase in net assets resulting from operations (i.e. net income) for the quarter ended September 30, 2016 was $16.1 million, or $0.30 per share, as compared to $18.3 million, or $0.35 per share, for the quarter ended June 30,
Slide 4: Financial Highlights
3 FINANCIAL HIGHLIGHTS Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Earnings per share $ 0.30 $ 0.35 $ 0.28 $ 0.40 $ 0.38 Net investment income per share 0.32 0.31 0.33 0.29 0.30 Accrual for capital gain incentive fee per share 0.00 0.01 (0.01) 0.03 0.02 Net investment income before capital gain incentiv
Slide 5: Portfolio Highlights – New Originations
4 PORTFOLIO HIGHLIGHTS – NEW ORIGINATIONS Originations and Net Funds Growth New investment commitments totaled $179.4 million for the quarter ended September 30, 2016. Total investments at fair value increased by 2.0%, or $32.1 million, for the quarter ended September 30, 2016 from June 30, 2016. Du
Slide 6: Portfolio Highlights – Portfolio Diversity
5 $1,530 $1,528 $1,612 $1,629 $1,661 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 6% 4% <1% PORTFOLIO HIGHLIGHTS ― PORTFOLIO DIVERSITY AS OF SEPTEMBER 30, 2016 11% 20% 16% 9% 9% 8% 5% 4% 4% 3% 3% 6% 13% Healthcare, Education and Childcare – 20% Diversifi
Slide 7: Portfolio Highlights – Spread Analysis
6 8.8% 8.2% 8.0% 8.2% 8.5% 8.0% 7.6% 7.6% 7.6% 7.8% 3.2% 3.3% 3.3% 3.3% 3.4% 5.6% 4.9% 4.7% 4.9% 5.1% 0.3% 0.6% 0.6% 0.7% 0.9% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Investment income yield Income yield Weighted average cost of debt Weighted a
Slide 8: Portfolio Highlights – Credit Quality
7 PORTFOLIO HIGHLIGHTS – CREDIT QUALITY Credit Quality – Investment Portfolio Fundamental credit quality at September 30, 2016 remains strong with non-accrual investments as a percentage of total investments at cost and fair value of 0.3% and 0.1%, respectively. Nearly 90% of the investments in our
Slide 9: Portfolio Highlights – Portfolio Ratings
8 PORTFOLIO HIGHLIGHTS – PORTFOLIO RATINGS Rating Definition 5 Borrower is performing above expectations and the trends and risk factors are generally favorable 4 Borrower is generally performing as expected and the risk factors are neutral to favorable 3 Borrower may be out of compliance with debt
Slide 10: Quarterly Statements of Financial Condition
9 QUARTERLY STATEMENTS OF FINANCIAL CONDITION As of (In thousands, except share and per share data) September 30, 2016 (audited) June 30, 2016 (unaudited) March 31, 2016 (unaudited) December 31, 2015 (unaudited) September 30, 2015 (audited) Assets Investments, at fair value $ 1,660,612 $ 1,628,509 $
Slide 11: Quarterly Operating Results
10 QUARTERLY OPERATING RESULTS For the three months ended (In thousands, except share and per share data) September 30, 2016 (unaudited) June 30, 2016 (unaudited) March 31, 2016 (unaudited) December 31, 2015 (unaudited) September 30, 2015 (unaudited) Investment Income Interest income $ 32,615 $ 30,8
Slide 12: Financial Performance Highlights
11 9.5% 10.1% 7.0% 9.0% 7.5% 8.0% 8.0% 8.0% 8.0% 8.0% 7.6% 7.3% 8.3% 7.8% 8.0% 6% 8% 10% 12% Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Net Income NII before accrual for capital gain incentive fee NII $14.58 $14.60 $14.66 $14.80 $15.12 $15.21 $15.23 $15.41 $15.44 $15.55 $15.55 $15.61 $15.74 $15.80 $15.89 $15.85
Slide 13: Portfolio Highlights – Senior Loan Fund LLC
12 PORTFOLIO HIGHLIGHTS – SENIOR LOAN FUND LLC The annualized quarterly return for the quarter ended September 30, 2016 was 3.0%. The quarterly return was negatively impacted primarily as a result of a mark-to-market unrealized loss on one middle-market loan. Total investments at fair value for the
Slide 14: Liquidity and Investment Capacity
13 LIQUIDITY AND INVESTMENT CAPACITY Cash and Cash Equivalents Unrestricted cash and cash equivalents totaled $10.9 million as of September 30, 2016. Restricted cash and cash equivalents totaled $78.6 million as of September 30, 2016. Restricted cash is held in our securitization vehicles, SBIC subs
Slide 15: Liquidity and Investment Capacity – Common Stock Issuances
14 LIQUIDITY AND INVESTMENT CAPACITY Common Stock Issuances Private Placement – On July 18, 2016, we entered into a Securities Purchase Agreement for the sale of 1,433,486 shares of our common stock to a third party institutional investor at a price per share of $17.44. Proceeds in cash of $25.0 mil
Slide 16: Debt Facilities and Securitization Tranches
15 Tranche Rating (M/S) Par Amount ($mm) Interest Rate Stated Maturity Reinvestment Period Class A-1 Notes Aaa/AAA $191.0 3 Month LIBOR + 1.75% April 25, 2026 April 28, 2018 Class A-2 Notes Aaa/AAA $20.0 3 Month LIBOR + 1.95% April 25, 2026 April 28, 2018 Class B Notes Aa2/AA $35.0 3 Month LIBOR + 2
Slide 17: Common Stock and Distribution Information
16 COMMON STOCK AND DISTRIBUTION INFORMATION Common Stock Data Distribution Data Date Declared Record Date Payment Date Amount Per Share Frequency Total Amount (in thousands) November 17, 2014 December 18, 2014 December 29, 2014 $0.32 Quarterly $15,078 February 3, 2015 March 20, 2015 March 27, 2015