Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q2 FY2019 Earnings Presentation
18 slides from Golub Capital Bdc's earnings presentation, May 8, 2019
Slide 1: Golub Capital BDC, Inc. Investor Presentation, Quarter Ended March 31, 2019
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED MARCH 31, 2019
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, N-2, quarterly reports on Form 10-Q and current reports on Form 8-K. which relate to future events or our future performance or financial condition. The This presentation contains statistics and other data
Slide 3: Summary of Quarterly Results
Summary of Quarterly Results Second Fiscal Quarter 2019 Highlights − Net increase in net assets resulting from operations (i.e. net income) for the quarter ended March 31, 2019 was $17.8 million, or $0.29 per share, as compared to $18.4 million, or $0.31 per share, for the quarter ended December 31,
Slide 4: Financial Highlights
Financial Highlights Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Earnings per share $ 0.39 $ 0.36 $ 0.26 $ 0.31 $ 0.29 Net investment income per share 0.31 0.31 0.34 0.33 0.33 Accrual for (Reversal of) capital gain incentive fee per share 0.01 0.02 (0.02) (0.01) (0.01) Net investment income before accru
Slide 5: New Originations
Portfolio Highlights – New Originations Originations and Net Funds Growth − New investment commitments totaled $116.1 million for the quarter ended March 31, 2019. − Total investments at fair value increased by 1.9%, or $36.5 million, as of March 31, 2019 from December 31, 2018. Select Portfolio Fun
Slide 6: Diversity: Investment Portfolio
Portfolio Highlights – Portfolio Diversity as of March 31, 2019 Investment Portfolio $1,883mm1 // 211 Investments1 – Average Size $8.9mm Historical Investment Portfolio ($mm) $2,000 $1,955 $1,918 4% 4% $1,799 $1,783 2% $1,800 $1,760 2% 5% 4% 1% 5% 1% 2% 2% 3% $1,600 1% 1% 1% Inv. in SLF $1,400 Equit
Slide 7: Diversity by Investment Size and Industry
Portfolio Highlights – Portfolio Diversity as of March 31, 2019 Diversity by Investment Size Industry Diversity of Investments SLF Top 10 4% Investments Diversified/Conglomerate Service 30% 19% Healthcare, Education and Childcare 18% Electronics 7% Retail Stores 7% Top 25 Investments Beverage, Food
Slide 8: Spread Analysis
Portfolio Highlights – Spread Analysis 10.0% 9.3% Portfolio Rotation – Q2 Q3 Q4 Q1 Q2 9.1% 9.1% 9.2% 8.8% Debt Investments 2018 2018 2018 2019 2019 9.0% Weighted average interest rate 8.8% 8.6% 8.8% 8.4% 7.8% 8.2% 7.7% 8.7% 8.0% 8.5% of new investments1 8.2% 7.0% Weighted average interest rate on in
Slide 9: Credit Quality
Portfolio Highlights – Credit Quality Credit Quality – Investment Portfolio − Fundamental credit quality as of March 31, 2019 remained strong with non-accrual investments as a percentage of total debt investments at cost and fair value of 0.5% and 0.2%, respectively. − During the quarter ended March
Slide 10: Portfolio Risk Ratings
Portfolio Highlights – Portfolio Ratings Portfolio Risk Ratings September 30, 2018 December 31, 2018 March 31, 2019 Investments at % of Investments at % of Investments at % of Internal Fair Value Total Fair Value Total Fair Value Total Performance Rating (000s) Portfolio (000s) Portfolio (000s) Port
Slide 11: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of (Dollar amounts in 000s, March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 except per share data) (unaudited) (unaudited) (audited) (unaudited) (unaudited) Assets Investments, at fair value $ 1,759,807 $ 1,798,515 $ 1,7
Slide 12: Quarterly Operating Results
Quarterly Operating Results For the three months ended (Dollar amounts in 000s, March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $ 34,369 $ 3
Slide 13: Financial Performance Highlights
Financial Performance Highlights Quarterly Distributions Annualized Return on Average Equity1 $0.50 $0.44 12% $0.40 $0.12 9.7% $0.30 10% 9.0% 5 qtr. $0.20 wtd. avg.: $0.32 $0.32 $0.32 $0.32 $0.32 8% 7.5% 7.5% 8.0% $0.10 6.5% $0.00 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 6% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Regula
Slide 14: Senior Loan Fund LLC
Portfolio Highlights – Senior Loan Fund LLC − The annualized quarterly return was 6.3% for the quarter ended March 31, 2019. The quarterly return improved from the prior quarter but continues to be impacted by a few underperforming investments. − Total investments at fair value for the quarter ended
Slide 15: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $5.8 million as of March 31, 2019. − Restricted cash, cash equivalents and foreign currencies totaled $70.3 million as of March 31, 2019. Restricted cash is held in our
Slide 16: Debt Facilities
Debt Facilities* 2014 Debt Securitization Tranche Rating (M/S) Par Amount ($mm) Interest Rate Stated Maturity Reinvestment Period Class A-1-R Notes Aaa/AAA $130.8 3-Month LIBOR + 0.95% April 25, 2026 April 28, 2018 Class A-2-R Notes Aaa/AAA $13.6 3-Month LIBOR + 0.95% April 25, 2026 April 28, 2018 C
Slide 17: Common Stock and Distribution Information
Common Stock and Distribution Information Common Stock Data 1 Fiscal Year Ending September 30, 2018 High Low End of Period First Quarter $19.41 $18.20 $18.20 Second Quarter $18.44 $17.62 $17.89 Third Quarter $18.67 $17.83 $18.30 Fourth Quarter $19.14 $18.40 $18.75 Fiscal Year Ending September 30, 20
Slide 18: GBDC/GCIC Merger Rationale
GBDC/GCIC Merger Rationale We remain excited about the pending merger with Golub Capital Investment Corporation (“GCIC”) and believe it is compelling for GBDC and its stockholders for several reasons: Accretive to Net Asset Value − The contemplated transaction would be approximately 4.5% accretive t