Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q3 FY2019 Earnings Presentation
18 slides from Golub Capital Bdc's earnings presentation, Aug 7, 2019
Slide 1: Investor Presentation, Quarter Ended June 30, 2019
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED JUNE 30, 2019
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, N-2, quarterly reports on Form 10-Q and current reports on Form 8-K. which relate to future events or our future performance or financial condition. The This presentation contains statistics and other data
Slide 3: Summary of Quarterly Results
Summary of Quarterly Results Third Fiscal Quarter 2019 Highlights − Net increase in net assets resulting from operations (i.e. net income) for the quarter ended June 30, 2019 was $19.2 million, or $0.32 per share, as compared to $17.8 million, or $0.29 per share, for the quarter ended March 31, 2019
Slide 4: Financial Highlights
Financial Highlights Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Earnings per share $ 0.36 $ 0.26 $ 0.31 $ 0.29 $ 0.32 Net investment income per share 0.31 0.34 0.33 0.33 0.32 Accrual for (Reversal of) capital gain incentive fee per share 0.02 (0.02) (0.01) (0.01) 0.00 2 Net investment income before acc
Slide 5: New Originations
Portfolio Highlights – New Originations New Originations Data and Net Funds Growth − New investment commitments totaled $157.1 million for the quarter ended June 30, 2019. − Total investments at fair value decreased by 1.6%, or $32.2 million, as of June 30, 2019 from March 31, 2019. Select Portfolio
Slide 6: Diversity: Investment Portfolio
Portfolio Highlights – Portfolio Diversity as of June 30, 2019 Investment Portfolio $1,851mm1 // 225 Investments1 – Average Size $8.2mm Historical Investment Portfolio ($mm) $2,000 $1,918 $1,955 $1,923 4% 4% 4% $1,799 $1,783 2% 2% $1,800 2% 5% 4% 1% 1% 1% 2% 2% $1,600 1% 1% Inv. in SLF $1,400 Equity
Slide 7: Diversity by Investment Size and Industry
Portfolio Highlights – Portfolio Diversity as of June 30, 2019 Diversity by Investment Size Industry Diversity of Investments SLF Top 10 4% Investments Diversified/Conglomerate Service 34% 19% Healthcare, Education and Childcare 19% Retail Stores 7% Top 25 Investments Electronics 6% Remaining 36% 20
Slide 8: Economic Analysis
Portfolio Highlights – Economic Analysis GBDC – Economic Analysis 10.0% 9.3% 9.1% 9.1% 9.2% 9.2% 8.8% 9.0% 8.5% 8.5% 8.8% 8.8% 8.0% 8.5% 8.6% 8.6% 8.2% 7.8% 7.9% 7.0% 6.0% 5.0% 5.0% 5.0% 5.0% 5.0% 4.8% 5.0% 4.7% 4.6% 4.0% 4.1% 4.3% 4.3% 4.2% 4.2% 3.8% 3.9% 3.9% 3.0% 2.8% 2.0% 2.6% 2.3% 2.3% 2.4% 2.3
Slide 9: Credit Quality
Portfolio Highlights – Credit Quality Credit Quality – Investment Portfolio − Fundamental credit quality as of June 30, 2019 remained strong with non-accrual investments as a percentage of total debt investments at cost and fair value of 0.7% and 0.4%, respectively. − During the quarter ended June 3
Slide 10: Portfolio Risk Ratings
Portfolio Highlights – Portfolio Ratings Portfolio Risk Ratings December 31, 2018 March 31, 2019 June 30, 2019 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) Portfolio
Slide 11: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of (Dollar amounts in 000s, June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 except per share data) (unaudited) (audited) (unaudited) (unaudited) (unaudited) Assets Investments, at fair value $ 1,798,515 $ 1,782,841 $ 1,91
Slide 12: Quarterly Operating Results
Quarterly Operating Results For the three months ended (Dollar amounts in 000s, June 30, 2018 September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $ 35,877 $ 37
Slide 13: Financial Performance Highlights
Financial Performance Highlights Quarterly Distributions Annualized Return on Average Equity1 $0.50 $0.44 12% $0.40 $0.12 10% 9.0% $0.30 7.9% 7.5% 7.5% 5 qtr. $0.20 8% wtd. avg.: $0.32 6.5% $0.32 $0.32 $0.32 $0.32 7.7% $0.10 6% $0.00 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 4% Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Reg
Slide 14: Senior Loan Fund LLC
Portfolio Highlights – Senior Loan Fund LLC − The annualized quarterly return was 0.0%1 for the quarter ended June 30, 2019. The quarterly return was negatively impacted by mark-to- market unrealized losses on a few underperforming investments. − Total investments at fair value for the quarter ended
Slide 15: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $8.3 million as of June 30, 2019. − Restricted cash, cash equivalents, and foreign currencies totaled $102.4 million as of June 30, 2019. Restricted cash is held in our
Slide 16: Debt Facilities
Debt Facilities* 2014 Debt Securitization Tranche Rating (M/S) Par Amount ($mm) Interest Rate Stated Maturity Reinvestment Period Class A-1-R Notes Aaa/AAA $108.4 3-Month LIBOR + 0.95% April 25, 2026 April 28, 2018 Class A-2-R Notes Aaa/AAA $11.3 3-Month LIBOR + 0.95% April 25, 2026 April 28, 2018 C
Slide 17: Common Stock and Distribution Information
Common Stock and Distribution Information Common Stock Data 1 Fiscal Year Ending September 30, 2018 High Low End of Period First Quarter $19.41 $18.20 $18.20 Second Quarter $18.44 $17.62 $17.89 Third Quarter $18.67 $17.83 $18.30 Fourth Quarter $19.14 $18.40 $18.75 Fiscal Year Ending September 30, 20
Slide 18: GBDC/GCIC Merger Rationale
GBDC/GCIC Merger Rationale We remain excited about the pending merger with GCIC and believe it is compelling for GBDC and its stockholders for several reasons: Accretive to Net Asset Value − The contemplated transaction would be approximately 4.5% accretive to GBDC’s NAV per (“NAV”) share1 Value Cre