Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q4 2018 Earnings Presentation
19 slides from Golub Capital Bdc's earnings presentation, Nov 28, 2018
Slide 1: Golub Capital BDC, Inc. Investor Presentation, Quarter Ended September 30, 2018
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED SEPTEMBER 30, 2018
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, PARTICIPANTS IN THE SOLICITATION which relate to future events or our future performance or financial condition. The Golub Capital BDC, Inc. (together with its consolidated subsidiaries, the “Company”) forw
Slide 3: Summary of Quarterly Results
Summary of Quarterly Results Fourth Fiscal Quarter 2018 Highlights − Net increase in net assets resulting from operations (i.e. net income) for the quarter ended September 30, 2018 was $15.9 million, or $0.26 per share, as compared to $21.7 million, or $0.36 per share, for the quarter ended June 30,
Slide 4: Financial Highlights
Financial Highlights Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Earnings per share $ 0.38 $ 0.36 $ 0.39 $ 0.36 $ 0.26 Net investment income per share 0.31 0.31 0.31 0.31 0.34 Accrual for capital gain incentive fee per share 0.01 0.01 0.01 0.02 (0.02) Net investment income before accrual for capital gai
Slide 5: New Originations
Portfolio Highlights – New Originations Originations and Net Funds Growth − New investment commitments totaled $182.3 million for the quarter ended September 30, 2018. − Total investments at fair value decreased by 0.9%, or $15.7 million, as of September 30, 2018 from June 30, 2018. Select Portfolio
Slide 6: Diversity of Investment Portfolio
Portfolio Highlights – Portfolio Diversity as of September 30, 2018 Investment Portfolio $1,712mm1 // 199 Investments1 – Average Size $8.6mm Historical Investment Portfolio ($mm) $2,000 $1,799 $1,800 $1,760 $1,783 $1,723 5% 4% $1,685 5% 5% 2% 2% 6% 3% $1,600 3% 1% 3% 1% 1% 1% 1% Inv. in SLF $1,400 E
Slide 7: Diversity by Investment Size and Industry
Portfolio Highlights – Portfolio Diversity as of September 30, 2018 Diversity by Investment Size Industry Diversity of Investments SLF Top 10 4% Investments Diversified/Conglomerate Service 26% 20% Healthcare, Education and Childcare 19% Electronics 7% Retail Stores 6% Top 25 Investments Beverage, F
Slide 8: Spread Analysis
Portfolio Highlights – Spread Analysis 10.0% 9.3% Portfolio Rotation – Q4 Q1 Q2 Q3 Q4 9.1% 8.8% Debt Investments 2017 2018 2018 2018 2018 9.0% 8.5% 8.5% Weighted average interest rate 8.8% 7.3% 7.5% 8.4% 7.8% 8.2% 8.0% 8.5% of new investments1 8.2% 7.8% 7.9% 7.0% Weighted average interest rate on in
Slide 9: Credit Quality
Portfolio Highlights – Credit Quality Credit Quality – Investment Portfolio − Fundamental credit quality as of September 30, 2018 remained strong with non-accrual investments as a percentage of total investments at cost and fair value of 0.7% and 0.3%, respectively. − During the quarter ended Septem
Slide 10: Portfolio Risk Ratings
Portfolio Highlights – Portfolio Ratings Portfolio Risk Ratings March 31, 2018 June 30, 2018 September 30, 2018 Investments at % of Investments at % of Investments at % of Internal Fair Value Total Fair Value Total Fair Value Total Performance Rating (000s) Portfolio (000s) Portfolio (000s) Portfoli
Slide 11: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of (Dollar amounts in 000s, September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 except per share data) (audited) (unaudited) (unaudited) (unaudited) (audited) Assets Investments, at fair value $ 1,685,015 $ 1,723,372 $ 1
Slide 12: Quarterly Operating Results
Quarterly Operating Results For the three months ended (Dollar amounts in 000s, September 30, 2017 December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $ 33,549
Slide 13: Financial Performance Highlights
Financial Performance Highlights Quarterly Distributions Annualized Return on Average Equity1 $0.50 12% $0.40 $0.40 $0.08 9.7% $0.30 10% 9.3% 5 qtr. 8.8% 9.0% wtd. avg.: $0.20 8.7% $0.32 $0.32 $0.32 $0.32 $0.32 8% $0.10 6.5% $0.00 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 6% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Regula
Slide 14: Senior Loan Fund LLC
Portfolio Highlights – Senior Loan Fund LLC − The annualized quarterly return was 3.6% for the quarter ended September 30, 2018. The quarterly return was negatively impacted by a mark-to-market unrealized loss on one portfolio company investment and below target leverage. − Total investments at fair
Slide 15: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $6.0 million as of September 30, 2018. − Restricted cash and cash equivalents totaled $39.7 million as of September 30, 2018. Restricted cash is held in our securitizat
Slide 16: Liquidity and Investment Capacity - continued
Liquidity and Investment Capacity - continued SEC No-Action Relief on Risk Retention Rules − On September 7, 2018, the Company and GC Advisors received a no-action relief letter from the U.S. Securities and Exchange Commission on their request regarding term debt securitizations1. The Company and GC
Slide 17: Small Business Credit Availability Act
Small Business Credit Availability Act Proposal for Stockholder Approval to be Subject to Reduced Asset Coverage – On November 27, 2018, the Board recommended that stockholders approve a proposal to be presented at our 2019 Annual Meeting of Stockholders currently scheduled for February 5, 2019, to
Slide 18: Debt Facilities
Debt Facilities* 2014 Debt Securitization Par Amount Tranche Rating (M/S) ($mm) Interest Rate Stated Maturity Reinvestment Period Class A-1-R Notes Aaa/AAA $147.1 3-Month LIBOR + 0.95% April 25, 2026 April 28, 2018 Class A-2-R Notes Aaa/AAA $15.4 3-Month LIBOR + 0.95% April 25, 2026 April 28, 2018 C
Slide 19: Common Stock and Distribution Information
Common Stock and Distribution Information Common Stock Data Fiscal Year Ended September 30, 2017 High Low End of Period First Quarter $18.76 $17.55 $18.39 Second Quarter $19.88 $18.38 $19.88 Third Quarter $20.44 $19.10 $19.12 Fourth Quarter $19.71 $18.24 $18.82 Fiscal Year Ending September 30, 2018