Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q4 2017 Earnings Presentation
17 slides from Golub Capital Bdc's earnings presentation, Nov 20, 2017
Slide 1: Golub Capital BDC, Inc. Investor Presentation Quarter Ended September 30, 2017
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED SEPTEMBER 30, 2017
Slide 2: Disclaimer
Disclaimer 2 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: o
Slide 3: Summary of Quarterly Results
1. As a supplement to U.S. generally accepted accounting principles (“GAAP”) financial measures, the Company has provided this non-GAAP financial measure. The Company believes that this non-GAAP financial measure is useful as it excludes the accrual of the capital gain incentive fee which is not con
Slide 4: Non-GAAP Reconciliation
1. As a supplement to GAAP financial measures, the Company has provided this non-GAAP financial measure. The Company believes that this non-GAAP financial measure is useful as it excludes the accrual of the capital gain incentive fee which is not contractually payable under the terms of the Investme
Slide 5: Asset Mix of New Investments and Portfolio Funds Roll
Asset Mix of New Investments Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Senior Secured 14% 22% 53% 11% 14% One Stop 85% 70% 38% 88% 85% Second Lien 0% 0% 0% 0% 0% Subordinated Debt 0% 0% 0% 0% 0% Investment in SLF 0% 7% 8% 0% 0% Equity 1% 1% 1% 1% 1% Select Portfolio Funds Roll Data (in millions) Q4 20
Slide 6: Portfolio Highlights – Portfolio Diversity
6 Portfolio Highlights – Portfolio Diversity as of September 30, 2017 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 $1,661 $1,696 Historical Investment Portfolio ($mm) 78% 10% 79% 10% 77% 11% 79% 11% 79% 11% Equity Inv. in SLF One Stop Senio
Slide 7: Portfolio Highlights – Portfolio Diversity
20% 17% 8% 6% 6% 5% 5% 5% % 4% 4% 6% 14% Healthcare, Education and Childcare Diversified/Conglomerate Service Retail Stores Beverage, Food and Tobacco Diversified/Conglomerate Manufacturing Electronics Leisure, Amusement, Motion Pictures, Entertainment Personal, Food and Miscellaneous Services Perso
Slide 8: Portfolio Rotation and Spread Analysis
Portfolio Rotation – Debt Investments Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Weighted average interest rate of new investments 1,2 7.6% 6.9% 6.4% 7.3% 7.3% Weighted average interest rate on investments that were sold or paid-off 2,3 6.8% 6.9% 6.5% 7.9% 7.3% Weighted average spread over LIBOR of new
Slide 9: Portfolio Highlights – Credit Quality
1. Please see Internal Performance Ratings definitions on the following page. Portfolio Highlights – Credit Quality 9 Credit Quality – Investment Portfolio − Fundamental credit quality at September 30, 2017 remained strong with non-accrual investments as a percentage of total investments at cost and
Slide 10: Internal Performance Rating Definitions
Rating Definition 5 Borrower is performing above expectations and the trends and risk factors are generally favorable 4 Borrower is generally performing as expected and the risk factors are neutral to favorable 3 Borrower may be out of compliance with debt covenants; however, loan payments are gener
Slide 11: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition 11 1. On September 13, 2011, we received exemptive relief from the SEC to permit us to exclude the debt of our small business investment company (“SBIC”) subsidiaries from our 200% asset coverage test. As such, asset coverage and regulatory leverage exclud
Slide 12: Quarterly Operating Results
Quarterly Operating Results 12 For the three months ended (Dollar amounts in 000s, except share and per share data) September 30, 2016 (unaudited) December 31, 2016 (unaudited) March 31, 2017 (unaudited) June 30, 2017 (unaudited) September 30, 2017 (unaudited) Investment Income Interest income $ 32,
Slide 13: Financial Performance Highlights
Financial Performance Highlights 13 7.5% 8.6% 9.6% 8.8% 9.3% 6% 8% 10% 12% Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Net Income $14.80 $15.12 $15.21 $15.23 $15.41 $15.44 $15.55 $15.55 $15.61 $15.74 $15.80 $15.89 $15.85 $15.88 $15.96 $15.99 $16.13 $16.26 $16.33 $14.80 $15.12 $15.21 $15.23 $15.41 $15.44 $15.55 $1
Slide 14: Portfolio Highlights – Senior Loan Fund LLC
Portfolio Highlights – Senior Loan Fund LLC 14 − The annualized quarterly return for the quarter ended September 30, 2017 improved to 10.2% from 3.4% for the quarter ended June 30, 2017, as there was a small net gain on mark-to-market valuations during the quarter ended September 30, 2017, as compar
Slide 15: Liquidity and Investment Capacity
Liquidity and Investment Capacity 15 Cash and Cash Equivalents − Unrestricted cash and cash equivalents totaled $4.0 million as of September 30, 2017. − Restricted cash and cash equivalents totaled $58.6 million as of September 30, 2017. Restricted cash is held in our securitization vehicles, SBIC s
Slide 16: Debt Facilities
Debt Facilities 16 Tranche Rating (M/S) Par Amount ($mm) Interest Rate Stated Maturity Reinvestment Period Class A-1 Notes Aaa/AAA $191.0 3 Month LIBOR + 1.75% April 25, 2026 April 28, 2018 Class A-2 Notes Aaa/AAA $20.0 3 Month LIBOR + 1.95% April 25, 2026 April 28, 2018 Class B Notes Aa2/AA $35.0 3
Slide 17: Common Stock and Distribution Information
Common Stock and Distribution Information 17 Common Stock Data Distribution Data Date Declared Record Date Payment Date Amount Per Share Frequency Total Amount (in 000s) February 2, 2016 March 7, 2016 March 30, 2016 $0.32 Quarterly $16,442 May 3, 2016 June 6, 2016 June 29, 2016 $0.32 Quarterly $16,4