CHICAGO, Dec. 8, 2011 /PRNewswire/ -- Golub Capital BDC,
Inc., a business development company (NASDAQ: GBDC), today
announced its financial results for the fourth quarter and fiscal
year ended September 30,
2011.
Except where the context suggests otherwise, the terms
"we," "us," "our," and "Company," refer to Golub Capital BDC, Inc.
and its subsidiaries. "GC Advisors" refers to GC Advisors
LLC, our investment adviser.
SELECTED FINANCIAL
HIGHLIGHTS
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(in thousands, expect per
share data)
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September 30, 2011
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June 30, 2011
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September 30, 2010
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Investment portfolio
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$
459,827
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$
438,593
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$
344,869
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Total assets
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$
559,644
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$
547,259
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$
442,763
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NAV per share
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$
14.56
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$
14.75
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$
14.71
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Quarter
Ended
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Year Ended
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September 30, 2011
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June 30, 2011
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September 30, 2011
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Investment income
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$
10,831
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$
10,071
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$
39,150
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Net investment income
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$
6,450
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$
5,952
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$
22,816
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Net (loss) gain on
investments and derivative instruments
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$
(3,469)
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$
568
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$
(1,477)
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Net increase in net assets
resulting from operations
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$
2,981
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$
6,520
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$
21,339
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Net investment income per
share
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$
0.30
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$
0.28
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$
1.16
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Net (loss) gain on
investments and derivative instruments per share
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$
(0.16)
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$
0.03
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$
(0.07)
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Net earnings per share
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$
0.14
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$
0.31
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$
1.09
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Fourth Fiscal Quarter 2011 Highlights
- Net investment income for the quarter ended September 30, 2011 was $6.5 million, or $0.30 per share, as compared to $6.0 million, or $0.28 per share, for the quarter ended
June 30, 2011; and
- Net gains (losses) on investments and derivative instruments
for the quarter ended September 30,
2011 was $(3.5) million, or
$(0.16) per share, as compared to
$0.6 million, or $0.03 per share, for the quarter ended
June 30, 2011;
- Net increase in net assets resulting from operations for the
quarter ended September 30, 2011 was
$3.0 million, or $0.14 per share, as compared to $6.5 million, or $0.31 per share, for the quarter ended
June 30, 2011;
- Our board of directors declared a quarterly distribution on
December 7, 2011 of $0.32 per share, payable on December 29, 2011 to stockholders of record as of
December 19, 2011.
Portfolio and Investment Activities
At September 30, 2011, the Company
had investments in 103 portfolio companies with a total fair value
of $459.8 million. The
investments in these portfolio companies consisted of $203.8 million of senior secured loans,
$177.9 million of unitranche loans,
$21.9 million of second lien loans,
$46.8 million of subordinated debt
and $9.4 million of equity
investments. The Company also had investments in
derivative instruments with a total fair value of $(2.0) million. This compares to our
portfolio as of June 30, 2011, at
which we had investments in 99 portfolio companies with a total
fair value of $438.9 million that
consisted of $207.9 million of senior
secured loans, $152.7 million of
unitranche loans, $23.8 million of
second lien loans, $46.3 million of
subordinated debt and $8.2 million of
equity investments. The Company also had an investments
in derivative instruments with a total fair value of $(0.3) million.
For the quarter ended September 30,
2011, the Company originated $59.8
million in new investment commitments, of which 68% were
unitranche loans, 30% were senior secured loans and 2% were equity
securities. Sales and repayments on investments for the same
period totaled $28.9 million.
For the quarter ended September 30,
2011, the weighted average annualized investment income
yield (which includes interest income and amortization of fees and
discounts) and the weighted average annualized interest income
yield (which excludes income resulting from amortization of fees
and discounts) on the fair value of investments in the Company's
portfolio was 9.9% and 9.1%, respectively.
Consolidated Results of Operations
Total investment income for the three months ended September 30, 2011 and June 30, 2011 was $10.8
million and $10.1 million,
respectively. This $0.7 million
increase was primarily attributable to higher average invested
assets and a higher yield during the three months ended
September 30, 2011.
Total investment income for the years ended September 30, 2011 and 2010 was $39.2 million and $33.2
million, respectively. This $6.0 million increase was primarily attributable
to higher average invested assets and a higher yield during the
year ended September 30, 2011.
Total expenses for the three months ended September 30, 2011 and June 30, 2011 were $4.4
million and $4.1 million,
respectively. This $0.3 million
increase was primarily due to an increase in interest expense as a
result of higher average debt outstanding, increased management
fees due to higher average assets and higher professional
fees.
Total expenses for the years ended September 30, 2011 and 2010 were $16.3 million and $9.8
million, respectively. This $6.5 million increase was primarily due to an
increase in interest expense as a result of higher average debt
outstanding and higher interest rates on our debt outstanding,
increased management fees due to higher average assets, and higher
professional and other general and administrative fees as the
fiscal year ending September 30, 2011
was our first full year as a public company.
During the three months ended September
30, 2011 and June 30, 2011,
the Company had $40,000 and
$71,000 of net realized gains on
investments and derivative instruments, respectively. During
the three months ended September 30,
2011 and June 30, 2011, the
Company recorded net unrealized depreciation on investments and
derivative instruments of $(3.5)
million and net unrealized appreciation on investments and
derivative instruments of $0.5
million, respectively.
During the years ended September 30,
2011 and 2010, the Company had $2.0
million and $(40,000) of net
realized gains (losses) on investments and derivative instruments,
respectively. During the years ended September 30, 2011 and 2010, the Company recorded
net unrealized depreciation on investments and derivative
instruments of $(3.5) million and net
unrealized appreciation on investments and derivative instruments
of $2.9 million,
respectively.
Liquidity and Capital Resources
The Company's liquidity and capital resources are derived from
the Company's debt securitization, SBA debentures, revolving credit
facility and cash flow from operations. The Company's primary
use of funds from operations includes investment in portfolio
companies and payments of fees and other expenses that the Company
incurs. The Company has used, and expects to continue to use
our debt securitization, SBA debentures, revolving credit facility,
proceeds from our investment portfolio and proceeds from public
offerings of our securities to finance our investment
objectives.
As of September 30, 2011, the
Company had cash and cash equivalents of $46.4 million, restricted cash of $23.4 million and $237.7
million of total debt outstanding. As of
September 30, 2011, the Company had
$38.7 million in available SBIC
debenture commitments and approximately $72.6 million available for additional borrowings
on our revolving credit facility, subject to leverage and borrowing
base restrictions.
On December 7, 2011, the Company's
board of directors declared a quarterly distribution of
$0.32 per share, payable on
December 29, 2011 to holders of
record as of December 19, 2011.
Portfolio and Asset Quality
GC Advisors regularly assesses the risk profile of each of the
Company's investments and rates each of them based on the following
categories:
Risk Ratings
Definition
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Rating
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Definition
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5
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Involves the least amount
of risk in our portfolio. The borrower is performing above
expectations, and the
trends and risk factors are
generally favorable.
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4
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Involves an acceptable
level of risk that is similar to the risk at the time of
origination. The borrower is generally
performing as expected, and
the risk factors are neutral to favorable.
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3
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Involves a borrower
performing below expectations and indicates that the loan's risk
has increased somewhat
since origination. The
borrower may be out of compliance with debt covenants; however,
loan payments are
generally not past due.
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2
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Involves a borrower
performing materially below expectations and indicates that the
loan's risk has increased
materially since
origination. In addition to the borrower being generally out of
compliance with debt covenants,
loan payments may be past
due (but generally not more than 180 days past due).
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1
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Involves a borrower
performing substantially below expectations and indicates that the
loan's risk has substantially
increased since
origination. Most or all of the debt covenants are out of
compliance and payments are substantially
delinquent. Loans rated 1
are not anticipated to be repaid in full and we will reduce the
fair market value of the loan
to the amount we anticipate
will be recovered.
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The following table shows the distribution of our investments on
the 1 to 5 investment performance rating scale at fair value as of
September 30, 2011 and June 30, 2011:
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September 30,
2011
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June 30, 2011
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Investment
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Investments
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Percentage of
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Investments
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Percentage of
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Performance
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at Fair Value
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Total
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at Fair Value
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Total
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Rating
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(In thousands)
(1)
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Investments
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(In thousands)
(1)
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Investments
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5
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$
49,691
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10.8%
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$
55,367
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12.6%
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4
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360,259
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78.7%
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336,490
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76.8%
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3
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45,141
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9.9%
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42,607
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9.7%
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2
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2,891
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0.6%
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4,129
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0.9%
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1
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-
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0.0%
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-
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0.0%
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Total
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$
457,982
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100.0%
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$
438,593
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100.0%
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(1) The fair value of
our investment in a total return swap ("TRS") at September 30, 2011
and June 30, 2011 was $(1.8) million and $(0.3) million,
respectively. The TRS is included in the above table with an
investment performance rating of 4 as of September 30, 2011 and
June 30, 2011.
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Conference Call
The Company will host an earnings conference call at
1:00 p.m. (Eastern Time) on
Friday, December 9, 2011. All
interested parties may participate in the conference call by
dialing (888) 228-0609 approximately 10-15 minutes prior to the
call. International callers should dial (303) 223-2680.
Participants should reference Golub Capital BDC, Inc. when
prompted. For a slide presentation that we intend to refer to
on the earnings conference call, please visit the Events and
Presentations link on the homepage of our website
(www.golubcapitalbdc.com) and click on the Investor Presentations
link to find the September 30, 2011
Investor Presentation. An archived replay of the call will be
available shortly after the call until 3:30
p.m. (Eastern Time) on January 6,
2012. To hear the replay, please dial (800) 633-8284.
International callers, please dial (402) 977-9140. For all
replays, please reference program ID number 21542939.
Golub Capital BDC, Inc.
and Subsidiaries
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Consolidated Statements
of Financial Condition
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(In thousands, except
share and per share data)
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September 30,
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June 30,
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September 30,
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2011
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2011
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2010
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Assets
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(unaudited)
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Investments, at fair value
(cost of $462,961, 439,661 and $345,536 respectively)
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$
459,827
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$
438,593
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$
344,869
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Cash and cash
equivalents
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46,350
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44,117
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61,219
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Restricted cash and cash
equivalents
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23,416
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29,279
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31,771
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Interest receivable
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3,063
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2,574
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1,956
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Receivable for investment
sold
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-
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17,015
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-
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Cash collateral on deposit
with custodian
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21,162
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11,460
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-
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Deferred financing
costs
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5,345
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3,836
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2,748
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Other assets
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481
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385
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200
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Total Assets
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$
559,644
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$
547,259
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$
442,763
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Liabilities
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Debt
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$
237,683
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$
222,300
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$
174,000
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Payable for investments
purchased
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-
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-
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5,328
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Interest payable
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1,066
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1,194
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1,167
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Management and incentive
fees payable
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1,608
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1,617
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1,008
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Unrealized depreciation on
derivative instruments
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1,986
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-
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-
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Due to broker
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-
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860
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-
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Accounts payable and
accrued expenses
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752
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|
765
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719
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Total
Liabilities
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243,095
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226,736
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182,222
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Net Assets
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Preferred stock, par value
$0.001 per share, 1,000,000 shares authorized,
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zero
shares issued and outstanding as of September 30, 2011, June 30,
2011 and
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September 30, 2010
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-
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-
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-
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Common stock, par value
$0.001 per share, 100,000,000 shares authorized, 21,733,903,
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21,733,903 and 17,712,444 shares issued and outstanding as of
September 30, 2011,
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June 30,
2011 and September 30, 2010
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22
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22
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18
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Paid in capital in excess
of par
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318,302
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318,302
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258,568
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Capital distributions in
excess of net investment income
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(398)
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(1,749)
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-
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Net unrealized
(depreciation) appreciation on investments and derivative
instruments
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(1,519)
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1,991
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1,995
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Net realized gain (loss) on
investments and derivative instruments
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142
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1,957
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(40)
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Total Net Assets
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316,549
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320,523
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260,541
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Total Liabilities and
Total Net Assets
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$
559,644
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$
547,259
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$
442,763
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Number of common shares
outstanding
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21,733,903
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21,733,903
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17,712,444
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Net asset value per common
share
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$
14.56
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$
14.75
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$
14.71
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Golub Capital BDC, Inc.
and Subsidiaries
|
Consolidated Statements
of Operations (unaudited)
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(In thousands, except
share and per share data)
|
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Three months
ended
|
Years ended September
30,
|
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September 30, 2011
|
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June 30, 2011
|
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2011
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2010
|
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(unaudited)
|
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Investment
income
|
|
|
|
|
|
|
|
|
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Interest
|
|
$ 10,831
|
|
$ 10,071
|
|
$ 39,150
|
|
$ 33,150
|
|
|
|
|
|
|
|
|
|
|
|
Total investment
income
|
|
10,831
|
|
10,071
|
|
39,150
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33,150
|
|
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|
|
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Expenses
|
|
|
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Interest and other debt
financing expenses
|
|
1,870
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|
1,637
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6,550
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3,525
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Base management fee
|
|
1,667
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|
1,497
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|
5,789
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|
3,328
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Incentive fee
|
|
(176)
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|
113
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|
348
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|
55
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Professional fees relating
to registration statement
|
|
-
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-
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-
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788
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Professional fees
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|
645
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|
500
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|
2,204
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|
1,050
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Administrative service
fee
|
|
226
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|
224
|
|
837
|
|
583
|
|
General and administrative
expenses
|
|
149
|
|
148
|
|
606
|
|
454
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
4,381
|
|
4,119
|
|
16,334
|
|
9,783
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
6,450
|
|
5,952
|
|
22,816
|
|
23,367
|
|
|
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
|
|
|
|
|
|
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Net realized gain (loss) on
investments and derivative instruments
|
|
40
|
|
71
|
|
2,037
|
|
(40)
|
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Net change in unrealized (depreciation) appreciation on investments
|
|
|
|
|
|
|
|
|
|
and derivative instruments
|
|
(3,509)
|
|
497
|
|
(3,514)
|
|
2,921
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on investments
and derivative instruments
|
|
(3,469)
|
|
568
|
|
(1,477)
|
|
2,881
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in net
assets resulting from operations
|
|
$
2,981
|
|
$
6,520
|
|
$ 21,339
|
|
$ 26,248
|
|
|
|
|
|
|
|
|
|
|
|
Per Common Share
Data
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings
per common share(1)
|
|
$
0.14
|
|
$
0.31
|
|
$ 1.09
|
|
N/A
|
|
Net investment income per
common share(1)
|
|
$
0.30
|
|
$
0.28
|
|
$ 1.16
|
|
N/A
|
|
Dividends and distributions
declared per common share(1)
|
|
$
0.32
|
|
$
0.32
|
|
$ 1.27
|
|
N/A
|
|
Basic and diluted weighted
average common shares outstanding(1)
|
|
21,733,903
|
|
21,319,348
|
|
19,631,797
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
(1) For historical periods
that include financial results prior to April 1, 2010, the Company
did not have common shares outstanding or
|
an equivalent and therefore earnings per share and weighted average
shares outstanding information for periods that include
|
financial results prior to April 1, 2010 are not
provided.
|
About Golub Capital BDC, Inc.
Golub Capital BDC, Inc. principally invests in senior secured,
unitranche, mezzanine and second lien loans of middle-market
companies that are, in most cases, sponsored by private equity
investors. Golub Capital BDC, Inc.'s investment activities are
managed by its investment adviser, GC Advisors LLC, an affiliate of
the Golub Capital group of companies ("Golub Capital").
About Golub Capital
Golub Capital, founded in 1994, is a leading lender to
middle-market companies. In 2010, Golub Capital was
named "Middle Market Lender of the Year" by Buyouts Magazine and
"Debt Financing Agent of the Year" and "Mezzanine Financing Agent
of the Year" by M&A Advisor. As of September 30, 2011, Golub Capital managed over
$5.0 billion of capital, with a team
of investment professionals in New
York and Chicago.
Forward-Looking Statements
This press release may contain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Statements other than statements of historical facts
included in this press release may constitute forward-looking
statements and are not guarantees of future performance or results
and involve a number of risks and uncertainties. Actual results may
differ materially from those expressed or implied in the
forward-looking statements as a result of a number of factors,
including those described from time to time in filings with the
Securities and Exchange Commission. Golub Capital BDC, Inc.
undertakes no duty to update any forward-looking statement made
herein. All forward-looking statements speak only as of the date of
this press release.
SOURCE Golub Capital BDC, Inc.