Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q1 FY2021 Earnings Presentation
26 slides from Golub Capital Bdc's earnings presentation, Feb 8, 2021
Slide 1: Golub Capital BDC, Inc. Investor Presentation Quarter Ended December 31, 2020
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED DECEMBER 31, 2020
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 vs. Preliminary Estimates
Summary of Financial Results vs. Preliminary Estimates 01
Slide 4: Summary of Financial Results vs. Preliminary Estimates
4 Summary of Financial Results vs. Preliminary Estimates 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 e
Slide 5: GBDC Performance Drivers
GBDC Performance Drivers O ? GOLUB CAPITAL
Slide 6: GBDC's Strong FQ1 2021 Earnings Were Driven by a Continuation of Themes from FQ4 2020
GBDC’s Strong FQ1 2021 Earnings Were Driven by a Continuation of Themes from FQ4 2020 6 Improved internal performance ratings1 Decline in non-accruals2 Low net realized losses3 Solid net unrealized gains, reversing a portion of FQ2 2020 unrealized losses3 Key Themes from FQ1 2021 Impact on G
Slide 7: Improved Borrower Performance and Increased Sponsor Support Continue to Drive Positive Trends in Risk Ratings
Improved Borrower Performance and Increased Sponsor Support Continue to Drive Positive Trends in GBDC’s Risk Ratings 7 Internal Performance Rating Migration % of Portfolio at Fair Value 2.0% 2.0% 1.7% 1.4% 1.1% 7.2% 26.5% 22.3% 19.7% 17.9% 90.8% 71.5% 76.0% 78.9% 81.0% December 31, 2019 March 31, 20
Slide 8: Low Net Realized Losses and Strong Unrealized Gains Drove a NAV Per Share Increase
$14.33 $14.60 $0.23 $0.06 $0.34 ($0.29) ($0.01) ($0.06) 9/30/20 NAV Net Investment Income Reversal of Amortization of Purchase Premium² FQ1 2021 Dividend Net Realized Loss on Investments Net Change in Unrealized Appreciation on Investments Net Reversal of Realized/ Unrealized Loss Resulting from the
Slide 9: Summary of Financial Results for the Quarter Ended December 31, 2020
Summary of Financial Results for the Quarter Ended December 31, 2020 03
Slide 10: Financial results summary
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 Select Portfolio Funds Roll Data (in millions) FQ1 2020 FQ2 2020 FQ3 2020 FQ4 2020 FQ1 2021 New Investment Commitments $271.1 $167.0 $15.7 $141.2 $526.8 Exits and Sales of Investments 154.3 290.9 88.4 172.4 278.7 Net Funds Growth1 155.4 (238.1) 40.2 (12.2) 269.0 Asset Mix of New Invest
Slide 12: Investment Portfolio Statistics
FY 2020 FY 2021 Investment Portfolio Statistics FQ1 2020 FQ2 2020 FQ3 2020 FQ4 2020 FQ1 2021 Investments in Portfolio Companies at Fair Value (000s) $4,329,238 $4,210,215 $4,250,370 $4,238,210 $4,507,218 Investments in Senior Loan Funds1,2 at Fair Value (000s) 119,078 - - - - Total Fair Value of Inv
Slide 13: Portfolio Highlights – Portfolio Diversity as of December 31, 2020
Portfolio Highlights – Portfolio Diversity as of December 31, 2020 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
Slide 14: Investment income yield and net investment spread
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 − Non-accrual investments at December 31, 2020 as a percentage of total investments at cost and fair value declined to 1.6% and 1.2%, respectively, comparable to pre-COVID levels. During the quarter ended December 31, 202
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 17.9% of the portfolio at fair value as of December 31, 2020 from 19.7% as of September 30, 2020. * Repr
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 For the three months ended FY 2020 FY 2021 (Dollar amounts in 000s, except share and per share data) December 31, 2019 (unaudited) March 31, 2020 (unaudited) June 30, 2020 (unaudited) September 30, 2020 (unaudited) December 31, 2020 (unaudited) Investment Income Intere
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 9.8% 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 $27.0 million as of December 31, 2020. − Restricted cash, cash equivalents and foreign currencies totaled $244.1 million as of December 31, 2020. Restricted cash is
Slide 22: Debt Capital Structure
Debt Capital 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, 2022 November 5, 2032 3 Month LIBOR + 2.44% 2018 Debt Securitization 408,200 40
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) February 5, 2019 March 7, 2019 March 28, 2019 $0.32 Quarterly $19,335 May 7, 2019 June 7, 2019 June 28, 2019 $0.32 Quarterly $19,
Slide 24: Goals For Navigating Through COVID
Goals For Navigating Through COVID 24 Key Goals Update as of December 31, 2020 1. Proactively manage GBDC’s investment portfolio GBDC’s portfolio companies continued to perform well, and credit metrics have improved meaningfully Performance ratings have improved with over 80% of loans performing a
Slide 25: Appendix: Endnotes
Appendix: Endnotes GOLUB CAPITAL
Slide 26: 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