Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q2 FY2021 Earnings Presentation
25 slides from Golub Capital Bdc's earnings presentation, May 10, 2021
Slide 1: Golub Capital BDC, Inc. Investor Presentation Quarter Ended March 31, 2021
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED MARCH 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 01
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
Slide 6: GBDC's Strong Earnings in Quarter Ended March 31, 2021 Were Driven by Continuation of Themes
GBDC’s Strong Earnings in Quarter Ended March 31, 2021 Were Driven by a Continuation of Themes from the Prior Quarter 6 GBDC portfolio companies generally continued to perform well ‒ Improved internal performance ratings2 ‒ Decline in non-accruals3 ‒ No net realized losses4 ‒ Solid net unrealized
Slide 7: Strong Borrower Performance – Performance Ratings Back to 2018 Levels
Strong Borrower Performance – GBDC’s Performance Ratings Are Back to 2018 Levels 7 Internal Performance Rating Migration % of Portfolio at Fair Value 1.0% 1.2% 2.0% 1.7% 1.4% 1.1% 1.1% 11.0% 7.9% 26.5% 22.3% 19.7% 17.9% 12.0% 88.0% 90.9% 71.5% 76.0% 78.9% 81.0% 86.9% 2018 2019 March 31, 2020 June 30
Slide 8: Strong Unrealized Gains Drove a NAV Per Share Increase
$14.60 $14.86 $0.24 $0.05 $0.00 * $0.31 ($0.29) ($0.05) 12/31/20 NAV Net Investment Income Reversal of Amortization of Purchase Premium² Dividend Paid During March 31, 2021 Quarter Net Realized Gain on Investments Net Change in Unrealized Appreciation on Investments Net Reversal of Realized/ Unreali
Slide 9: Summary of Financial Results for the Quarter Ended March 31, 2021
Summary of Financial Results for the Quarter Ended March 31, 2021 03
Slide 10: 1. Purchase premium refers to the premium paid by GBDC to acquire GCIC in
1. Purchase premium refers to the premium paid by GBDC to acquire GCIC in excess of the fair value of the assets acquired. 2. Due to the purchase accounting for the GCIC acquisition and the retroactive adjustment to the weighted average share calculation to recognize the bonus element associated wit
Slide 11: Select Portfolio Funds Roll Data
FY2020 FY2021 Quarter Ended Quarter Ended Select Portfolio Funds Roll Data (in millions) 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 New Investment Commitments $167.0 $15.7 $141.2 $526.8 $234.7 Exits and Sales of Investments 290.9 88.4 172.4 278.7 347.5 Net Funds Growth1 (238.1) 40.2 (12.2) 269.0 (112.
Slide 12: Portfolio Highlights – Investment Mix
Portfolio Highlights – Investment Mix 12 $- $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 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 1% 1% Historical Investment Portfolio ($000) 82% 15% 1. Junior Debt is comprised of second lien and subordinated debt.
Slide 13: Portfolio Highlights – Portfolio Diversity as of March 31, 2021
Portfolio Highlights – Portfolio Diversity as of March 31, 2021 13 * Represents an amount less than 0.5%. 1. Junior debt is comprised of subordinated debt and second lien loans. 2. The percentage of fixed rate loans and floating rate loans is calculated using total debt investments at fair value and
Slide 14: 1. Investment income yield is calculated as (a) the actual amount earned on earning
1. Investment income yield is calculated as (a) the actual amount earned on earning investments, including interest and fee income and amortization of capitalized fees and discounts, divided by (b) the daily average of total earning investments at fair value. Investment income yield excludes any amo
Slide 15: Portfolio Highlights – Credit Quality
Portfolio Highlights – Credit Quality 15 Credit Quality – Investment Portfolio − As of March 31, 2021, non-accrual investments continued to decline to below pre-COVID levels and remained low at 1.4% and 1.0% as a percentage of total investments at cost and fair value, respectively. − During the quar
Slide 16: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings 16 Credit Quality – Investment Portfolio − Due to continued improvement in borrower performance, the percentage of risk rated “3” investments decreased to 12.0% of the portfolio at fair value as of March 31, 2021 from 17.9% as of December 31, 2020. * Represen
Slide 17: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition 17 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 18: Quarterly Operating Results
Quarterly Operating Results 18 FY 2020 FY 2021 (Dollar amounts in 000s, except share and per share data) March 31, 2020 (unaudited) June 30, 2020 (unaudited) September 30, 2020 (unaudited) December 31, 2020 (unaudited) March 31, 2021 (unaudited) Investment Income Interest income $87,421 $80,100 $79,
Slide 19: Financial Performance Highlights
Financial Performance Highlights 19 * The quarterly return on equity is calculated as the annualized return on average equity divided by four. The annualized return on average equity for the periods ended through FQ3 2019 are calculated as (a) the net increase in net assets resulting from operations
Slide 20: Long History of Strong Shareholder Returns
20 Long History of Strong Shareholder Returns Investors in GBDC’s 2010 IPO have achieved a 9.9% 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 Of
Slide 21: Liquidity and Investment Capacity
Liquidity and Investment Capacity 21 Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $77.1 million as of March 31, 2021. − Restricted cash, cash equivalents and foreign currencies totaled $107.0 million as of March 31, 2021. Restricted cash is held i
Slide 22: Post-COVID Initiatives Have Enhanced GBDC's Liability Structure
Post-COVID Initiatives Have Enhanced the Flexibility, Term and Durability of GBDC’s Liability Structure 22 Funding Source Debt Commitment Outstanding Par Undrawn Commitment Reinvestment Period Stated Maturity Interest Rate1 Securitizations: 2020 Debt Securitization $ 189,000 $ 189,000 $ - November 5
Slide 23: Common Stock and Distribution Information
Common Stock and Distribution Information 23 Common Stock Data1 Distribution Data Date Declared Record Date Payment Date Amount Per Share Frequency Total Amount (in 000s) May 7, 2019 June 7, 2019 June 28, 2019 $0.32 Quarterly $19,388 August 6, 2019 August 19, 2019 September 27, 2019 $0.32 Quarterly
Slide 24: Appendix: Endnotes
Appendix: Endnotes GOLUB CAPITAL
Slide 25: 1. On September 16, 2019, the Company completed its acquisition of GCIC. The merger
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