Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q4 2021 Earnings Presentation
26 slides from Golub Capital Bdc's earnings presentation, Nov 29, 2021
Slide 1: Golub Capital BDC, Inc. Investor Presentation Quarter Ended September 30, 2021
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED SEPTEMBER 30, 2021
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 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 premium paid by GBDC to acquire GCIC in excess of
Slide 5: Fiscal Year 2021 in Review
Fiscal Year 2021 in Review 5 Key Themes Update as of September 30, 2021 1. Strong portfolio performance GBDC’s portfolio companies continued to perform well, with credit metrics improving to pre-COVID levels Performance ratings have improved with over 90% of loans performing at or better than expe
Slide 6: GBDC Performance Drivers
GBDC Performance Drivers O ? GOLUB CAPITAL
Slide 7: GBDC's Strong Earnings Were Driven by a Continuation of Themes
GBDC’s Strong Earnings Were Driven by a Continuation of Themes from the Prior Quarters 7 GBDC portfolio companies generally continued to perform well ‒ Improved internal performance ratings2 ‒ Low non-accruals3 ‒ Net realized gains4 ‒ Solid net unrealized gains4 Record new originations at GBDC d
Slide 8: Strong Borrower Performance – Performance Ratings Back to Pre-COVID Levels
Strong Borrower Performance – GBDC’s Performance Ratings Are Back to Pre-COVID Levels 8 Internal Performance Rating Migration % of Portfolio at Fair Value 1.0% 1.2% 1.4% 1.1% 1.1% 1.1% 1.0% 11.0% 7.9% 19.7% 17.9% 12.0% 9.5% 8.1% 88.0% 90.9% 78.9% 81.0% 86.9% 89.4% 90.9% 2018 2019 September 30, 2020
Slide 9: Strong Unrealized Gains Drove a NAV Per Share Increase
$15.06 $15.19 $0.27 $0.03 $0.02 $0.13 ($0.29) ($0.03) June 30, 2021 NAV Net Investment Income Reversal of Amortization of Purchase Premium¹ Dividend Paid During September 30, 2021 Quarter Net Realized Gain on Investments Net Change in Unrealized Appreciation on Investments Net Reversal of Realized/
Slide 10: Summary of Financial Results for the Quarter Ended
Summary of Financial Results for the Quarter Ended September 30, 2021 03
Slide 11: Quarterly Financial Results Summary
11 Quarter Ended September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 Net Investment Income Per Share Net investment income per share $0.23 $0.23 $0.24 $0.25 $0.27 Amortization of purchase premium per share1 0.05 0.06 0.05 0.04 0.03 Adjusted net investment income per
Slide 12: Portfolio Funds Roll Data and Asset Mix of New Investments
Quarter Ended September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 Select Portfolio Funds Roll Data (in millions) New Investment Commitments $141.2 $526.8 $234.7 $614.7 $971.4 Exits and Sales of Investments 172.4 278.7 347.5 583.5 383.8 Net Funds Growth1 (12.2) 269.0
Slide 13: Portfolio Highlights – Investment Mix
Portfolio Highlights – Investment Mix 13 $- $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 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 1% 1% Historical Investment Portfolio ($000) 1. Junior Debt is
Slide 14: Portfolio Highlights – Portfolio Diversity
Portfolio Highlights – Portfolio Diversity as of September 30, 2021 14 * 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 e
Slide 15: Investment Income Yield 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 16: Portfolio Highlights – Credit Quality
Portfolio Highlights – Credit Quality 16 − As of September 30, 2021, non-accrual investments remained low at 1.3% 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 September 30, 2021,
Slide 17: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings 17 − Due to continued improvement in borrower performance, the percentage of risk rated “3” investments decreased to 8.1% of the portfolio at fair value as of September 30, 2021 from 9.5% as of June 30, 2021. * Represents an amount less than 0.1%. Internal Pe
Slide 18: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition 18 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 19: Quarterly Operating Results
Quarterly Operating Results 19 Quarter Ended (Dollar amounts in 000s, except share and per share data) September 30, 2020 (unaudited) December 31, 2020 (unaudited) March 31, 2021 (unaudited) June 30, 2021 (unaudited) September 30, 2021 (unaudited) Investment Income Interest income $79,107 $82,209 $8
Slide 20: Financial Performance Highlights
Financial Performance Highlights 20 * 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 21: Long History of Strong Shareholder Returns
21 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 22: Liquidity and Investment Capacity
Liquidity and Investment Capacity 22 Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $181.1 million as of September 30, 2021. − Restricted cash, cash equivalents and foreign currencies totaled $63.3 million as of September 30, 2021. Restricted cash i
Slide 23: Post-COVID Initiatives Enhanced GBDC's Liability Structure
Post-COVID Initiatives Have Enhanced the Flexibility, Term and Durability of GBDC’s Liability Structure 23 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 24: Common Stock and Distribution Information
Common Stock and Distribution Information 24 Common Stock Data1 Distribution Data Date Declared Record Date Payment Date Amount Per Share Frequency Total Amount (in 000s) November 22, 2019 December 12, 2019 December 30, 2019 $0.33 Quarterly $43,777 November 22, 2019 December 12, 2019 December 30, 20
Slide 25: Appendix: Endnotes
Appendix: Endnotes GOLUB CAPITAL
Slide 26: 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