Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q2 2022 Earnings Presentation
24 slides from Golub Capital Bdc's earnings presentation, May 10, 2022
Slide 1: Golub Capital BDC, Inc. Investor Presentation, Quarter Ended March 31, 2022
CONFIDENTIAL | FOR DISCUSSION PURPOSES ONLY GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED MARCH 31, 2022
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 * Represents an amount less than $0.01 per share 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
Slide 5: GBDC Performance Drivers
GBDC Performance Drivers O ? GOLUB CAPITAL
Slide 6: GBDC's Strong Earnings Were Driven by a Continuation of Themes from the Prior Quarter
GBDC’s Strong Earnings Were Driven by a Continuation of Themes from the Prior Quarter 6 GBDC portfolio companies generally continued to perform well ‒ Stable internal performance ratings2 ‒ Low non-accruals3 ‒ Solid net realized and unrealized gains4 Solid net originations supported a modest inc
Slide 7: Strong Unrealized Gains Drove a NAV Per Share Increase from December 31, 2021
$15.26 $15.35 $0.25 $0.02 $0.00 * $0.14 ($0.30) ($0.02) December 31, 2021 NAV Net Investment Income Reversal of Amortization of Purchase Premium¹ Dividend Paid During March 31, 2022 Quarter Net Realized Gain on Investments Net Change in Unrealized Appreciation on Investments Net Reversal of Realized
Slide 8: Summary of Financial Results for the Quarter Ended
Summary of Financial Results for the Quarter Ended March 31, 2022 03
Slide 9: Net Investment Income and Earnings Per Share by Quarter
9 Quarter Ended March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 Net Investment Income Per Share Net investment income per share $0.24 $0.25 $0.27 $0.27 $0.25 Amortization of purchase premium per share1 0.05 0.04 0.03 0.04 0.02 Adjusted net investment income per share
Slide 10: Select Portfolio Funds Roll Data
Quarter Ended March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 Select Portfolio Funds Roll Data (in millions) New Investment Commitments $234.7 $614.7 $971.4 $867.7 $323.2 Exits and Sales of Investments 347.5 583.5 383.8 661.8 122.2 Net Funds Growth1 (112.0) 44.3 455.
Slide 11: Portfolio Highlights – Investment Mix
Portfolio Highlights – Investment Mix 11 $- $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 $5,000,000 $5,500,000 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 1% Historical Investment Portfolio ($000) 1. Junior Debt
Slide 12: Portfolio Highlights – Portfolio Diversity
Portfolio Highlights – Portfolio Diversity as of March 31, 2022 12 * Represents an amount less than 0.5%. 1. Junior Debt is comprised of second lien and subordinated debt. 2. The percentage of fixed rate loans and floating rate loans is calculated using total debt investments at fair value and exclu
Slide 13: Weighted Average Cost of Debt and Net Investment Spread
1. The weighted average cost of debt and weighted average net investment spread presented for the quarter ended September 30, 2021 exclude $3.6 million of accelerated capitalized debt issuance costs that resulted from the August 26, 2021 early redemption of notes issued by the 2020 Debt Securitizati
Slide 14: Portfolio Highlights – Credit Quality
Portfolio Highlights – Credit Quality 14 − Fundamental credit quality as of March 31, 2022 remained strong with over 90% of the investments in our portfolio having an Internal Performance Rating1 of 4 or higher as of March 31, 2022. − During the quarter ended March 31, 2022, the number of non-accrua
Slide 15: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings 15 * Represents an amount less than 0.1%. Internal Performance Ratings (% of Portfolio at Fair Value) Rating Definition 5 Borrower is performing above expectations and the trends and risk factors are generally favorable 4 Borrower is generally performing as e
Slide 16: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition 16 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 17: Quarterly Operating Results
Quarterly Operating Results 17 Quarter Ended (Dollar amounts in 000s, except share and per share data) March 31, 2021 (unaudited) June 30, 2021 (unaudited) September 30, 2021 (unaudited) December 31, 2021 (unaudited) March 31, 2022 (unaudited) Investment Income Interest income $83,728 $81,694 $83,60
Slide 18: Financial Performance Highlights
Financial Performance Highlights 18 * The quarterly return on equity for the periods up to and including the quarter ended June 30, 2019 are calculated as (a) the net increase in net assets resulting from operations (i.e., net income) for the period presented divided by (b) the daily average of tota
Slide 19: Long History of Strong Shareholder Returns
19 Long History of Strong Shareholder Returns Investors in GBDC’s 2010 IPO have achieved a 10.0% 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 O
Slide 20: Liquidity and Investment Capacity
Liquidity and Investment Capacity 20 Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $136.2 million as of March 31, 2022. − Restricted cash, cash equivalents and foreign currencies totaled $38.2 million as of March 31, 2022. Restricted cash is held i
Slide 21: Post-COVID Initiatives Have Enhanced the Flexibility, Term and Durability of GBDC's Liability Structure
Post-COVID Initiatives Have Enhanced the Flexibility, Term and Durability of GBDC’s Liability Structure 21 Funding Source Debt Commitment Outstanding Par Undrawn Commitment Reinvestment Period Stated Maturity Interest Rate1 Securitizations: 2018 Debt Securitization $ 408,200 $ 408,200 $ - January 20
Slide 22: Common Stock and Distribution Information
Common Stock and Distribution Information 22 Common Stock Data1 Distribution Data Date Declared Record Date Payment Date Amount Per Share Frequency Total Amount (in 000s) April 9, 2020 June 9, 2020 June 29, 2020 $0.29 Quarterly $48,505 August 4, 2020 September 8, 2020 September 29, 2020 $0.29 Quarte
Slide 23: Appendix: Endnotes
Appendix: Endnotes GOLUB CAPITAL
Slide 24: 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