CHICAGO, May 3, 2013 /PRNewswire/ -- Golub Capital BDC,
Inc., a business development company (NASDAQ: GBDC), today
announced its financial results for the second fiscal quarter ended
March 31, 2013.
Except where the context suggests otherwise, the terms
"we," "us," "our," and "Company" refer to Golub Capital BDC, Inc.
and its consolidated subsidiaries. "GC Advisors" refers to GC
Advisors LLC, our investment adviser.
SELECTED FINANCIAL HIGHLIGHTS
|
|
|
|
|
(in
thousands, expect per share data)
|
|
|
|
|
|
March 31,
2013
|
|
December
31, 2012
|
Investment
portfolio
|
$
788,442
|
|
$
768,342
|
Total
assets
|
$
893,178
|
|
$
839,003
|
Net asset
value per share
|
$
14.80
|
|
$
14.66
|
|
|
|
|
|
Quarter
Ended
|
|
March 31,
2013
|
|
December
31, 2012
|
Investment
income
|
$
20,096
|
|
$
18,594
|
Net
investment income
|
$
10,394
|
|
$
9,578
|
Net gain
(loss) on investments
|
$
1,857
|
|
$
(259)
|
Net
increase in net assets resulting from operations
|
$
12,251
|
|
$
9,319
|
|
|
|
|
Net
investment income per share
|
$
0.32
|
|
$
0.34
|
Net gain
(loss) on investments
|
$
0.06
|
|
$
(0.01)
|
Net
earnings per share
|
$
0.38
|
|
$
0.33
|
Second Fiscal Quarter 2013 Highlights
- Net investment income for the quarter ended March 31, 2013 was $10.4
million, or $0.32 per share,
as compared to $9.6 million, or
$0.34 per share, for the quarter
ended December 31, 2012;
- Net gain (loss) on investments for the quarter ended
March 31, 2013 was $1.9 million, or $0.06 per share, as compared to $(0.3) million, or $(0.01) per share, for the quarter ended
December 31, 2012;
- Net increase in net assets resulting from operations for the
quarter ended March 31, 2013 was
$12.3 million, or $0.38 per share, as compared to $9.3 million, or $0.33 per share, for the quarter ended
December 31, 2012; and
- Our board of directors declared a quarterly distribution on
May 1, 2013 of $0.32 per share, payable on June 27, 2013 to stockholders of record as of
June 13, 2013.
Portfolio and Investment Activities
As of March 31, 2013, the Company
had investments in 135 portfolio companies with a total fair value
of $788.4 million. The
investments in these portfolio companies consisted of $261.8 million of senior secured loans,
$382.2 million of one stop loans,
$76.6 million of second lien loans,
$41.8 million of subordinated debt
and $26.0 million of equity
investments. This compares to the Company's portfolio as of
December 31, 2012, as of which the
Company had investments in 129 portfolio companies with a total
fair value of $768.3 million.
The investments in these portfolio companies consisted of
$248.9 million of senior secured
loans, $363.6 million of one stop
loans, $81.4 million of second lien
loans, $49.6 million of subordinated
debt and $24.8 million of equity
investments.
For the quarter ended March 31,
2013, the Company originated $58.1
million in new middle-market investment commitments.
Approximately 36% of the new middle-market investment commitments
were senior secured loans, 25% were one stop loans, 38% were second
lien loans and 1% were equity securities. Overall, total
investments in portfolio companies at fair value increased by
$20.1 million during the three months
ended March 31, 2013 after factoring
in debt repayments and sales of securities.
For the quarter ended March 31,
2013, 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 earning investments in the
Company's portfolio was 10.6% and 9.5%, respectively.
Consolidated Results of Operations
Total investment income for the quarter ended March 31, 2013 and December 31, 2012 was $20.1 million and $18.6
million, respectively. This $1.5 million increase was primarily attributable
to higher average invested assets partially offset by lower fees
and amortization income from prepayments during the quarter ended
March 31, 2013.
Total expenses for the quarter ended March 31, 2013 and December 31, 2012 were $9.7 million and $9.0
million, respectively. This $0.7 million increase was primarily due to
increased incentive fees due to higher net investment income,
increased management fees due to higher average assets and
increased financing costs associated with amendments to the
Company's term debt securitization and revolving credit
facility.
During the quarter ended March 31,
2013, the Company recorded net unrealized appreciation on
investments of $1.9 million.
The unrealized appreciation for the three months ended March 31, 2013 primarily resulted from an
increase in fair value primarily due to the rise in market prices
and a reversal of prior period unrealized depreciation.
Liquidity and Capital Resources
The Company's liquidity and capital resources are derived from
the Company's debt securitization, U.S. Small Business
Administration ("SBA") debentures, revolving credit facility and
cash flow from operations. The Company's primary uses of
funds from operations include investment in portfolio companies and
payment of fees and other expenses that the Company incurs.
The Company has used, and expects to continue to use, its debt
securitization, SBA debentures, revolving credit facility, proceeds
from its investment portfolio and proceeds from offerings of its
securities to finance its investment objectives.
As of March 31, 2013, the Company
had cash and cash equivalents of $9.0
million, restricted cash of $84.2
million and $385.7 million of
total debt outstanding. As of March 31, 2013, the Company had $52.3 million available for additional borrowings
on its revolving credit facility, subject to leverage and borrowing
base restrictions. As of March 31,
2013, the Company's wholly owned subsidiaries, GC SBIC IV,
L.P. had $135.0 million of
outstanding SBA-guaranteed debentures and GC SBIC V, L.P. had no
outstanding debentures, leaving incremental borrowing capacity of
$15.0 million and $75.0 million for GC SBIC IV, L.P. and GC SBIC V,
L.P., respectively, under present small business investment company
("SBIC") regulations.
On January 15, 2013, the Company
priced a public offering of 4,500,000 shares of our common stock at
a public offering price of $15.87 per
share, raising approximately $71.4
million in gross proceeds. On January
18, 2013, the transaction closed, the shares were issued,
and proceeds, net of offering costs but before expenses, of
$69.1 million were received. On
February 20, 2013, the Company sold
an additional 622,262 shares of our common stock at a public
offering price of $15.87 per share
pursuant to the underwriters' partial exercise of the
over-allotment option.
On February 15, 2013, the Company
amended its term debt securitization which, among other things,
increased the size of the total notes outstanding by $50.0 million, lowered the pricing on the Class A
notes from LIBOR + 2.40% to LIBOR + 1.74% and extended the
reinvestment period through July
2015.
On May 1, 2013, the Company's
board of directors declared a quarterly distribution of
$0.32 per share payable on
June 27, 2013 to holders of record as
of June 13, 2013.
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:
Internal Performance Rating
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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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|
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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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|
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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 scored 1 are not
anticipated to be repaid in full and we will reduce the fair market
value of the loan to the amount the Company anticipates will be
recovered.
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The following table shows the distribution of the Company's
investments on the 1 to 5 internal performance rating scale at fair
value as of March 31, 2013 and
December 31, 2012:
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March
31, 2013
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|
December 31, 2012
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Internal
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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)
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|
Investments
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(In
thousands)
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|
Investments
|
|
5
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$
136,918
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17.4
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%
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$
107,548
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|
14.0
|
%
|
4
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|
614,776
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|
78.0
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|
612,624
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79.7
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|
3
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30,145
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3.8
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43,924
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5.7
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2
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5,681
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0.7
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|
2,047
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0.3
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1
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922
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0.1
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|
2,199
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|
0.3
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Total
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|
$
788,442
|
|
100.0
|
%
|
$
768,342
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Conference Call
The Company will host an earnings conference call at
11:00 a.m. (Eastern Time) on
Friday, May 3, 2013 to discuss the
quarterly financial results. All interested parties may
participate in the conference call by dialing (800) 915-4217
approximately 10-15 minutes prior to the call; international
callers should dial (212) 271-4651. 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 Quarter Ended
3.31.13 Investor Presentation under
Events and Presentations. An archived replay of the call will
be available shortly after the call until 1:00 p.m. (Eastern Time) on May 28, 2013. To hear the replay, please dial
(800) 633-8284. International dialers, please dial (402) 977-9140.
For all replays, please reference program ID number 21654052.
Golub
Capital BDC, Inc. and Subsidiaries
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Consolidated Statements of Financial
Condition
|
(In
thousands, except share and per share data)
|
|
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|
March
31, 2013
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|
December 31, 2012
|
Assets
|
(unaudited)
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|
(unaudited)
|
Investments, at fair value (cost of $783,868 and
$765,626,
respectively)
|
$
788,442
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|
$
768,342
|
Cash and
cash equivalents
|
8,950
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|
21,420
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Restricted
cash and cash equivalents
|
84,214
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|
39,226
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Interest
receivable
|
4,278
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|
3,245
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Deferred
financing costs
|
7,029
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|
6,373
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Other
assets
|
265
|
|
397
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Total
Assets
|
$
893,178
|
|
$
839,003
|
|
|
|
|
Liabilities
|
|
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Debt
|
$
385,700
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|
$
400,450
|
Interest
payable
|
1,304
|
|
2,473
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Management
and incentive fees payable
|
5,069
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|
4,782
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Accounts
payable and accrued expenses
|
1,452
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|
1,452
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Payable
for investments purchased
|
-
|
|
10,456
|
Total
Liabilities
|
393,525
|
|
419,613
|
|
|
|
|
Net
Assets
|
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|
Preferred
stock, par value $0.001 per share, 1,000,000
shares authorized, zero
shares issued and outstanding
as
of March 31, 2013 and
December 31, 2012
|
|
|
|
-
|
|
-
|
Common
stock, par value $0.001 per share, 100,000,000
shares authorized, 33,754,512 and
28,605,336 shares
issued and outstanding as of
March 31, 2013
December 31, 2012, respectively
|
|
|
|
|
|
|
34
|
|
29
|
Paid in
capital in excess of par
|
498,448
|
|
419,648
|
Capital
distributions in excess of net investment income
|
379
|
|
779
|
Net
unrealized appreciation on investments and
derivative instruments
|
7,242
|
|
5,384
|
Net
realized loss on investments and derivative instruments
|
(6,450)
|
|
(6,450)
|
Total
Net Assets
|
499,653
|
|
419,390
|
Total
Liabilities and Total Net Assets
|
$
893,178
|
|
$
839,003
|
|
|
|
|
Number of
common shares outstanding
|
33,754,512
|
|
28,605,336
|
Net asset
value per common share
|
$
14.80
|
|
$
14.66
|
|
|
|
|
|
|
|
|
Golub
Capital BDC, Inc. and Subsidiaries
|
Consolidated Statements of
Operations
|
|
(In
thousands, except share and per share data)
|
|
|
|
Three
months ended
|
|
|
March
31, 2013
|
|
December 31, 2012
|
|
|
(unaudited)
|
Investment income
|
|
|
Interest income
|
|
$
19,617
|
|
$
18,327
|
Dividend income
|
|
479
|
|
267
|
|
|
|
|
|
Total
investment income
|
|
20,096
|
|
18,594
|
|
|
|
|
|
Expenses
|
|
|
|
|
Interest and other debt financing
expenses
|
|
3,292
|
|
2,995
|
Base management fee
|
|
2,686
|
|
2,468
|
Incentive fee
|
|
2,468
|
|
2,394
|
Professional fees
|
|
512
|
|
493
|
Administrative service fee
|
|
610
|
|
548
|
General and administrative
expenses
|
|
134
|
|
118
|
|
|
|
|
|
Total
expenses
|
|
9,702
|
|
9,016
|
|
|
|
|
|
Net
investment income
|
|
10,394
|
|
9,578
|
|
|
|
|
|
Net
(loss) gain on investments
|
|
|
|
|
Net realized gain (loss) on
investments
|
|
-
|
|
94
|
Net realized loss on derivative
instruments
|
|
-
|
|
-
|
Net change in unrealized (depreciation)
appreciation
on investments
|
|
1,857
|
|
(353)
|
Net change in unrealized depreciation on
derivative
instruments
|
|
-
|
|
-
|
|
|
|
|
|
Net
(loss) gain on investments
|
|
1,857
|
|
(259)
|
|
|
|
|
|
Net
increase in net assets resulting from
operations
|
|
$
12,251
|
|
$
9,319
|
|
|
|
|
|
Per
Common Share Data
|
|
|
|
|
Basic and diluted earnings per common
share
|
|
$
0.38
|
|
$
0.33
|
Dividends and distributions declared per
common
share
|
|
$
0.32
|
|
$
0.32
|
Basic and diluted weighted average
common shares
outstanding
|
|
32,532,794
|
|
27,933,613
|
|
|
|
|
|
|
|
|
|
|
ABOUT GOLUB CAPITAL BDC, INC.
Golub Capital BDC, Inc. principally invests in senior secured,
one stop, subordinated 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
With $8 billion of capital under
management, Golub Capital is a leading provider of financing
solutions for the middle market, including one stop financings
(through the firm's proprietary GOLD and MEGA GOLD facilities), senior, second lien, and
subordinated debt, preferred stock and co-investment equity. The
firm underwrites and syndicates senior credit facilities up to
$250 million. Golub Capital's hold
sizes range up to $200 million per
transaction.
Golub Capital has been a Top 3 Traditional Middle Market
Bookrunner each year from 2008 through 2012 for senior secured
loans of up to $100 million for
leveraged buyouts (according to Thomson Reuters LPC and internal
data; based on number of deals). In 2012, Golub Capital was awarded
the ACG New York Champion's Award for "Senior Lender Firm of the
Year." Golub Capital is a national firm with principal offices in
Chicago and New York. For more information, please visit
the firm's website at www.golubcapital.com.
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.