Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q1 2025 Earnings Presentation
33 slides from Golub Capital Bdc's earnings presentation, Feb 5, 2025
Slide 1: Golub Capital BDC, Inc. Earnings Presentation, Quarter Ended December 31, 2024
GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED DECEMBER 31, 2024
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: FY 2025 Q1 Earnings Review (Quarter Ended 12/31/24)
FY 2025 Q1 Earnings Review (Quarter Ended 12/31/24) 1,2 Earnings Summary ◦ Profitability remained solid with adjusted net investment income per share of $0.39, or an Adjusted NII ROE of 10.1% ◦ Key profitability drivers: ▪ Continued strong portfolio company performance ▪ High base rates ▪ Attractive
Slide 5: Summary of Financial Results vs. Prior Quarter
Summary of Financial Results vs. Prior Quarter Quarter Ended September 30, 2024 December 31, 2024 Net Investment Income Per Share Net investment income per share $0.45 $0.37 1 Amortization of purchase premium per share 0.02 0.02 2 Adjusted net investment income per share A $0.47 $0.39 Net Realized/U
Slide 6: GBDC Performance Drivers
GBDC Performance Drivers O 2 GOLUB CAPITAL
Slide 7: Modest NAV Per Share Decrease From September 30, 2024
Modest NAV Per Share Decrease From September 30, 2024 NAV Per Share Bridge $0.37 $0.02 ($0.05) ($0.04) $0.16 $15.19 ($0.39) ($0.02) $15.13 1 Adjusted NII: $0.39 ($0.11) Total Distributions: ($0.48) Adjusted Net Realized & Unrealized Gain: 1 $0.03 September 30, 2024 Net Investment Reversal of Special
Slide 8: Summary of Financial Results for the Quarter Ended December 31, 2024
Summary of Financial Results for the Quarter Ended December 31, 2024 03
Slide 9: Summary of Quarterly Results
Summary of Quarterly Results Quarter Ended Pre-GBDC 3 Acquisition Post-GBDC 3 Acquisition December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Net Investment Income Per Share Net investment income per share $0.49 $0.51 $0.46 $0.45 $0.37 1 Amortization of purchase premi
Slide 10: Portfolio Highlights - New Originations
Portfolio Highlights - New Originations – Total investments at fair value increased by approximately 5.5%, or $449.8 million, during the three months ended December 31, 2024. – Total investments in portfolio companies at fair value was $8.7 billion at December 31, 2024. Quarter Ended Pre-GBDC 3 Acqu
Slide 11: 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) $8,685,231 8,50
Slide 12: Portfolio Highlights – Portfolio Diversity as of December 31, 2024
Portfolio Highlights – Portfolio Diversity as of December 31, 2024 Investment Portfolio $8,685MM | 386 Portfolio Companies | Average Size 0.3% Portfolio Composition by Seniority Diversification by Portfolio Company Top 10 Portfolio Companies 1% 7% 13% 5% First Lien Traditional Senior First Lien Top
Slide 13: Portfolio Highlights – Economic Analysis
Portfolio Highlights – Economic Analysis: 14.0% 12.6% 12.8% 13.0% 12.5% 12.3% 11.9% 12.0% 12.0% 11.5% 12.4% 11.2% 12.2% 11.9% 12.0% 11.0% 10.5% 11.6% 11.7% 11.1% 10.9% 10.0% 9.2% 10.0% 9.0% 7.7% 7.5% 8.0% 7.3% 7.3% 7.2% 8.4% 7.0% 6.7% 6.8% 6.8% 7.0% 6.5% 6.1% 6.2% 7.1% 6.9% 7.1% 5.8% 6.0% 5.5% 5.3%
Slide 14: Portfolio Highlights - Credit Quality
Portfolio Highlights - Credit Quality – Fundamental credit quality as of December 31, 2024 remained strong with nearly 90% of the investments in our portfolio at fair value having an 1 Internal Performance Rating of 4 or higher as of December 31, 2024. – As of December 31, 2024, non-accrual investme
Slide 15: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings Internal Performance Ratings (% of Portfolio at Fair Value) At Fiscal Year End At Quarter End Rating 2020 2021 2022 2023 2024 December 31, 2024 5 6.1% 10.2% 4.6% 0.9% 1.9% 2.7% 4 72.8% 80.7% 86.8% 84.2% 85.2% 87.2% 3 19.7% 8.1% 7.3% 14.6% 11.6% 8.8% 2 1.4% 1.
Slide 16: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of Pre-GBDC 3 Acquisition Post-GBDC 3 Acquisition December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (audited) (unaudited) Ass
Slide 17: Quarterly Operating Results
Quarterly Operating Results Quarter Ended Pre-GBDC 3 Acquisition Post-GBDC 3 Acquisition December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investmen
Slide 18: Financial Performance Highlights
Financial Performance Highlights Quarterly Return on Equity and Quarterly Distributions (Last 5 Years) Regular Distribution Special Distribution Supplemental Distribution Quarterly Return on Equity* 6.7% 4.0% 3.9% 3.8% 3.3% 4.0% 3.7% 2.8% 2.4% 2.6% 2.4% 2.9% 2.9% 2.0%^ 2.3% 2.8% 0.6% 0.3% 1.0% (10.5
Slide 19: Long History of Strong Shareholder Returns
Long History of Strong Shareholder Returns As of December 31, 2024 $35.14 1 Investors in GBDC’s 2010 IPO have achieved a 9.6% IRR on NAV $0.33 $0.73 $18.95 $14.63 $15.13 Dec-13 Sep-21 Jun-14 Mar-22 Dec-14 Sep-22 Jun-15 Mar-23 Dec-15 Sep-23 Jun-16 Mar-24 Dec-16 Sep-24 Jun-17 Apr-10 Dec-17 Sep-10 Jun-
Slide 20: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents – Unrestricted cash and cash equivalents and foreign currencies totaled $110.3 million as of December 31, 2024. – Restricted cash and cash equivalents and foreign currencies totaled $110.6 million as of December 31, 2024. Restricted cash is
Slide 21: Liquidity and Investment Capacity (continued)
Liquidity and Investment Capacity (continued) Debt Securitization and Redemptions – On November 18, 2024, we issued $1.36 billion in notes which bear interest at a weighted-average rate of three-month SOFR + 1.58% through a $2.2 billion debt securitization (the “2024 Debt Securitization”). The reinv
Slide 22: GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure
GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure GBDC Debt Capital Structure* Undrawn 1 Funding Source Debt Commitment Outstanding Par Commitment Reinvestment Period Stated Maturity Interest Rate Securitizations: GBDC 3 2022 Debt Securitization $232,513 $232,513 — January 25, 2024 J
Slide 23: Common Stock and Distribution Information
Common Stock and Distribution Information 1 Common Stock Price Data Fiscal Year Ending September 30, 2024 High Low End of Period First Quarter $15.31 $14.06 $15.10 Second Quarter $16.63 $15.06 $16.63 Third Quarter $17.58 $15.50 $15.71 Fourth Quarter $16.00 $14.36 $15.11 Fiscal Year Ending September
Slide 24: Quarterly Variable Supplemental Distribution Framework
Quarterly Variable Supplemental Distribution Framework FY 2025 Q1 Quarterly Variable Supplemental Distribution Quarter Ended Quarter Ended September 30, 2024 December 31, 2024 Quarterly Variable Supplemental Distribution Adjusted net investment income per share $0.47 $0.39 (-) Quarterly base distrib
Slide 25: Appendix: Endnotes
Appendix: Endnotes A GOLUB CAPITAL
Slide 26: Endnotes - FY 2025 Q1 Earnings Review (Quarter Ended 12/31/24)
Endnotes - FY 2025 Q1 Earnings Review (Quarter Ended 12/31/24) 1. As a supplement to GAAP financial measures, the Company is providing additional non-GAAP measures. See the slide titled “Endnotes – Non-GAAP Financial Measures” at the end of this presentation for further description on the non-GAAP f
Slide 27: Endnotes - NAV Roll
Endnotes - NAV Roll 1. As a supplement to GAAP financial measures, the Company is providing additional non-GAAP measures. See the slide titled “Endnotes - Non-GAAP Financial Measures” at the end of this presentation for further description on the non-GAAP financial measures. 2. Refer to slide 24 for
Slide 28: Endnotes - Summary of Financial Results vs. Prior Quarter
Endnotes - Summary of Financial Results vs. Prior Quarter 1. On September 16, 2019 and June 3, 2024, Golub Capital BDC, Inc. (“we”, “us”, “our”, the “Company” or “GBDC”) completed its acquisitions of Golub Capital Investment Corporation (“GCIC”) and Golub Capital BDC 3, Inc. (“GBDC 3”), respectively
Slide 29: Endnotes - Non-GAAP Financial Measures
Endnotes - Non-GAAP Financial Measures 1. On September 16, 2019 and June 3, 2024, the Company completed its acquisitions of GCIC and GBDC 3, respectively. Each acquisition was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”)
Slide 30: Endnotes - Quarterly Operating Results
Endnotes - Quarterly Operating Results 1. For the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024, GC Advisors unilaterally agreed to irrevocably waive $5.2 million, and $14.4 million and $7.8 million of income incentive fees, respectively, calculated under the Investment Advisor
Slide 31: Endnotes - Portfolio Highlights - New Originations
Endnotes - Portfolio Highlights - New Originations 1. Net funds growth includes the impact of new investments and exits of investments as noted in the table above, as well as other variables such as net funding on revolvers, net change in unamortized fees, net change in unrealized appreciation (depr
Slide 32: Endnotes - Portfolio Highlights Economic Analysis
Endnotes - Portfolio Highlights Economic Analysis 1. The income yield presented for the quarter ended September 30, 2022 excludes the one-time recognition of $2.0 million of previously deferred interest income resulting from the repayment and refinancing of former non-accrual loans, which are includ
Slide 33: Endnotes - Debt Capital Structure
Endnotes - Debt Capital Structure 1. Interest rate for securitizations represents the weighted average spread over 3-month Secured Overnight Financing Rate (“SOFR”) for the various tranches of issued notes, excluding tranches retained by the Company. For bank facilities, the interest rate represents