Golub Capital BDC, Inc. · NASDAQ:GBDC
Golub Capital BDC — Q1 FY2017 Earnings Presentation
17 slides from Golub Capital BDC's earnings presentation, Feb 8, 2017
Slide 1: Golub Capital BDC, Inc. Investor Presentation, Quarter Ended December 31, 2016
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED DECEMBER 31, 2016
Slide 2: Disclaimer
Disclaimer 2 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
1. As a supplement to U.S. generally accepted accounting principles (“GAAP”) financial measures, the Company has provided this non-GAAP performance result. The Company believes that this non-GAAP financial measure is useful as it excludes the accrual of the capital gain incentive fee which is not co
Slide 4: Non-GAAP Reconciliation
1. As a supplement to GAAP financial measures, the Company has provided this non-GAAP performance result. The Company believes that this non-GAAP financial measure is useful as it excludes the accrual of the capital gain incentive fee which is not contractually payable under the terms of the Investm
Slide 5: Asset Mix of New Investments
Asset Mix of New Investments Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Senior Secured 21% 24% 17% 14% 22% One Stop 69% 72% 81% 85% 70% Second Lien 0% 0% 0% 0% 0% Subordinated Debt 0% 0% 0% 0% 0% Investment in SLF 9% 3% 0% 0% 7% Equity 1% 1% 2% 1% 1% Select Portfolio Funds Roll Data (in millions) Q1 20
Slide 6: Portfolio Highlights – Portfolio Diversity
6 Portfolio Highlights – Portfolio Diversity as of December 31, 2016 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Historical Investment Portfolio ($mm) 74% 12% 75% 11% 76% 11% 78% 10% 79% 10% Equity Inv. in SLF One Stop Senior Secured Investment P
Slide 7: Portfolio Highlights – Portfolio Diversity as of December 31, 2016
20% 17% 9% 9% 8% 5% 4% 3% 3% 3% 6% 13% Healthcare, Education and Childcare Diversified/Conglomerate Service Beverage, Food and Tobacco Retail Stores Electronics Diversified/Conglomerate Manufacturing Aerospace and Defense Personal and Non Durable Consumer Products (Mfg. Only) Personal, Food and Misc
Slide 8: Portfolio Rotation and Spread Analysis
Portfolio Rotation – Debt Investments Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Weighted average interest rate of new investments 1,2 6.7% 7.2% 7.2% 7.6% 6.9% Weighted average interest rate on investments that were sold or paid-off 2,3 7.3% 7.0% 6.8% 6.8% 6.9% Weighted average spread over LIBOR of new
Slide 9: Portfolio Highlights – Credit Quality
1. Please see Internal Performance Ratings definitions on the following page. Portfolio Highlights – Credit Quality 9 Credit Quality – Investment Portfolio − Fundamental credit quality at December 31, 2016 remains strong with non-accrual investments as a percentage of total investments at cost and f
Slide 10: Internal Performance Rating Definitions
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 covenants; however, loan payments are gener
Slide 11: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition 11 1. On September 13, 2011, we received exemptive relief from the SEC to permit us to exclude the debt of our small business investment company (“SBIC”) subsidiaries from our 200% asset coverage test. As such, asset coverage and regulatory leverage exclud
Slide 12: Quarterly Operating Results
Quarterly Operating Results 12 For the three months ended (Dollar amounts in 000s, except share and per share data) December 31, 2015 (unaudited) March 31, 2016 (unaudited) June 30, 2016 (unaudited) September 30, 2016 (unaudited) December 31, 2016 (unaudited) Investment Income Interest income $ 29,1
Slide 13: Financial Performance Highlights
Financial Performance Highlights 13 10.1% 7.0% 9.0% 7.5% 8.6% 6% 8% 10% 12% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Net Income $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 $15.88 $15.96 $14.58 $14.60 $14.66 $14.80 $15.12 $15.21 $15.23 $15.41 $
Slide 14: Portfolio Highlights – Senior Loan Fund LLC
Portfolio Highlights – Senior Loan Fund LLC 14 − The annualized quarterly return for the quarter ended December 31, 2016 was 7.1%, up from 3.0% for the quarter ended September 30, 2016. Quarterly returns for the past two quarters have been negatively impacted from a mark-to-market unrealized loss on
Slide 15: Liquidity and Investment Capacity
Liquidity and Investment Capacity 15 Cash and Cash Equivalents − Unrestricted cash and cash equivalents totaled $5.7 million as of December 31, 2016. − Restricted cash and cash equivalents totaled $66.0 million as of December 31, 2016. Restricted cash is held in our securitization vehicles, SBIC sub
Slide 16: Debt Facilities
Debt Facilities 16 Tranche Rating (M/S) Par Amount ($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
Slide 17: Common Stock and Distribution Information
Common Stock and Distribution Information 17 Common Stock Data Distribution Data Date Declared Record Date Payment Date Amount Per Share Frequency Total Amount (in 000s) February 3, 2015 March 20, 2015 March 27, 2015 $0.32 Quarterly $15,095 May 11, 2015 June 18, 2015 June 29, 2015 $0.32 Quarterly $1