Golub Capital BDC, Inc. · NASDAQ:GBDC
Golub Capital BDC — Q3 FY2021 Earnings Presentation
26 slides from Golub Capital BDC's earnings presentation, August 2021
Slide 1: Golub Capital BDC, Inc. Investor Presentation
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED JUNE 30, 2021
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, Such forward-looking statements may include statements preceded by, followed by which relate to future events or our future performance or financial condition. The or that otherwise include the words “may,”
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 Quarter Ended March 31, 2021 June 30, 2021 Net Investment Income Per Share Net investment income per share $0.24 $0.25 Amortization of purchase premium per share1 0.05 0.04 Adjusted net investment income per share2 A $0.29 $0.29 Net Realized/Unrealized
Slide 5: GBDC Performance Drivers
GBDC Performance Drivers O Wi, GOLUB CAPITAL
Slide 6: Strong Earnings Driven by a Continuation of Themes from the Prior Quarter
GBDC’s Strong Earnings in Quarter Ended June 30, 2021 Were Driven by a Continuation of Themes from the Prior Quarter Key Themes from Quarter Ended June 30, 2021 Impact on GBDC Earnings growth across middle market private GBDC portfolio companies generally continued companies in Golub Capital por
Slide 7: Strong Borrower Performance – Performance Ratings Back to Pre-COVID Levels
Strong Borrower Performance – GBDC’s Performance Ratings Are Back to Pre-COVID Levels − Continued upward migration into internal performance ratings 4-5, back to pre-COVID levels. − Percentage of portfolio investments at fair value with internal performance ratings 1-2 remained small and in-line wit
Slide 8: Strong Unrealized Gains Drove a NAV Per Share Increase
Strong Unrealized Gains Drove a NAV Per Share Increase from March 31, 2021 NAV Per Share Bridge $0.04 ($0.04) ($0.29) $15.06 $0.25 $0.21 $0.03 $14.86 Adjusted NII: $0.291 Adjusted Net Realized & Unrealized Gain: $0.201 March 31, 2021 Net Investment Reversal of Dividend Paid Net Realized Gain Net Cha
Slide 9: Further Optimization of Debt Capital Structure Post Quarter End
Further Optimization of Debt Capital Structure Post Quarter End − On August 3, 2021, GBDC completed its third unsecured bond offering—$350.0 million of unsecured notes with a fixed interest rate of 2.050% and a maturity date of February 15, 2027. − Pro forma for the bond offering, unsecured debt is
Slide 10: Summary of Financial Results for the Quarter Ended June 30, 2021
Summary of Financial Results for the Quarter Ended June 30, 2021 03
Slide 11: Summary of Quarterly Results
Summary of Quarterly Results Quarter Ended June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 Net Investment Income Per Share Net investment income per share $0.23 $0.23 $0.23 $0.24 $0.25 Amortization of purchase premium per share1 0.05 0.05 0.06 0.05 0.04 Adjusted net i
Slide 12: Portfolio Highlights – New Originations
Portfolio Highlights – New Originations − Total investments at fair value increased by approximately 1.0%, or $44.3 million, during the quarter ended June 30, 2021. − As of June 30, 2021, we had $45.4 million of undrawn revolver commitments to portfolio companies. Quarter Ended June 30, 2020 Septemb
Slide 13: Portfolio Highlights – Investment Mix
Portfolio Highlights – Investment Mix − The portfolio continues to be focused on first lien, senior secured loans to what we believe to be healthy, resilient middle market companies backed by strong, partnership-oriented private equity sponsors. Historical Investment Portfolio ($000) $4,507,218 $4,4
Slide 14: Portfolio Highlights – Portfolio Diversity
Portfolio Highlights – Portfolio Diversity as of June 30, 2021 Investment Portfolio $4,440mm // 275 Investments – Average Size <0.4% Portfolio Composition by Seniority Diversification by Obligor Top 10 1% 3% Investments 16% 16% First Lien Traditional Senior First Lien Top 25 96% One Stop Investments
Slide 15: Portfolio Highlights – Economic Analysis
Portfolio Highlights – Economic Analysis 10.00% 8.8% 9.00% 8.4% 8.2% 8.1% 7.9% 8.0% 7.9% 7.8% 8.00% 8.4% 8.0% 7.8% 7.7% 7.00% 7.4% 7.4% 7.5% 7.4% 6.00% 5.1% 5.0% 5.0% 5.1% 4.8% 4.9% 5.00% 4.5% 4.5% 4.00% 4.0% 3.9% 3.7% 3.00% 3.2% 2.9% 3.0% 2.7% 2.8% 2.00% 2.1% 1.9% 1.00% 1.5% 0.3% 0.2% 0.2% 0.2% 0.1
Slide 16: Portfolio Highlights – Credit Quality
Portfolio Highlights – Credit Quality − As of June 30, 2021, non-accrual investments remained low at 1.4% and 1.0% as a percentage of total investments at cost and fair value, respectively, consistent with the prior quarter and pre-COVID levels. − During the quarter ended June 30, 2021, the number o
Slide 17: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings − Due to continued improvement in borrower performance, the percentage of risk rated “3” investments decreased to 9.5% of the portfolio at fair value as of June 30, 2021 from 12.0% as of March 31, 2021. Internal Performance Ratings (% of Portfolio at Fair Val
Slide 18: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 (Dollar amounts in 000s, except share and per share data) (unaudited) (audited) (unaudited) (unaudited) (unaudited) Assets Investments, at fair value $4,250,370 $4,238,21
Slide 19: Quarterly Operating Results
Quarterly Operating Results Quarter Ended June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $80,100 $79,107 $82,209 $8
Slide 20: Financial Performance Highlights
Financial Performance Highlights Quarterly Return on Equity and Quarterly Distributions (Last 5 Years) Regular Distribution Special Distribution Quarterly Return on Equity* 6.7% 4.0% 3.9% 3.8% 3.3% 1.9% 2.2% 2.4% 2.2% 2.3% 2.2% 2.4% 2.3% 1.9% 1.9% 2.0% 2.2% 2.1% 1.6% $0.57 -10.5% $0.25 $0.46 $0.44 $
Slide 21: Long History of Strong Shareholder Returns
Long History of Strong Shareholder Returns Investors in GBDC’s 2010 IPO have achieved a 10.0% IRR on NAV1 $33.94 $0.58 $14.17 $4.132 $14.63 $15.06 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20
Slide 22: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $156.9 million as of June 30, 2021. − Restricted cash, cash equivalents and foreign currencies totaled $77.9 million as of June 30, 2021. Restricted cash is held in our
Slide 23: Post-COVID Initiatives Enhanced Flexibility, Term and Durability of Liability Structure
Post-COVID Initiatives Have Enhanced the Flexibility, Term and Durability of GBDC’s Liability Structure Debt Capital Structure* Debt Outstanding Undrawn Funding Source Commitment Par Commitment Reinvestment Period Stated Maturity Interest Rate1 Securitizations: 2020 Debt Securitization $ 189,000 $ 1
Slide 24: Common Stock and Distribution Information
Common Stock and Distribution Information Common Stock Data1 Fiscal Year Ending September 30, 2020 High Low End of Period First Quarter $18.56 $17.70 $18.45 Second Quarter $18.14 $9.55 $12.56 Third Quarter $12.65 $9.58 $11.65 Fourth Quarter $13.44 $11.31 $13.24 Fiscal Year Ending September 30, 2021
Slide 25: Appendix: Endnotes
Appendix: Endnotes GOLUB CAPITAL
Slide 26: Endnotes – Non-GAAP Financial Measures
Endnotes – Non-GAAP Financial Measures 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. U