CHICAGO, May 14, 2014 /PRNewswire/ -- Golub Capital BDC,
Inc. a business development company (the "Company") (NASDAQ: GBDC,
www.golubcapitalbdc.com), today announced that its wholly-owned and
consolidated subsidiary, Golub Capital BDC CLO 2014 LLC, has priced
a twelve year $400 million term debt
securitization.
The notes offered in the term debt securitization (the "Notes")
are structured as follows:
|
Par
Amount
|
% of
Capital
|
|
Expected
Rating
|
Issuance
|
Tranche
|
($ in
millions)
|
Structure
|
Coupon
|
(Moody's /
S&P)
|
Price
|
Class A-1
Notes
|
$191.0
|
47.5%
|
3 Mos LIBOR +
1.75%
|
Aaa / AAA
|
100.0%
|
Class A-2 Notes
*
|
$20.0
|
5.0%
|
3 Mos LIBOR +
1.45%
|
Aaa / AAA
|
100.0%
|
Class B
Notes
|
$35.0
|
8.7%
|
3 Mos LIBOR +
2.50%
|
Aa2 / AA
|
100.0%
|
Class C
Notes
|
$37.5
|
9.3%
|
3 Mos LIBOR +
3.50%
|
A2 / -
|
100.0%
|
Equity
Interests
|
$118.3
|
29.5%
|
N/A
|
N/A
|
N/A
|
|
|
|
|
|
|
Total
|
$401.8
|
100.0%
|
|
|
|
|
|
|
|
|
|
*The Class
A-2 coupon is 3 Mos LIBOR + 1.45% for the first 18 months and 3 Mos
LIBOR + 1.95% thereafter.
|
The Class C Notes and Equity Interests will be indirectly
retained by the Company. The reinvestment period for the term debt
securitization ends in April 2018 and
the Notes are scheduled to mature in April 2026.
The term debt securitization is expected to be 70% - 80.0%
funded at close with assets that currently secure the Company's
revolving credit facility with Wells Fargo and with assets that are
currently unlevered. Additionally, based upon current LIBOR
rates and including the amortization of costs and fees associated
with the debt securitization, the Company projects an all-in yield
of 2.4 % on the Class A and Class B Notes which compares favorably
to the all-in yield of 3.1% on the Company's revolving credit
facility with Wells Fargo for the three months ended March 31, 2014.
The securities offered as part of the term debt securitization
have not been and will not be registered under the Securities Act
of 1933, as amended (the "Securities Act"), or any state "blue sky"
laws and may not be offered or sold in the United States absent registration under
Section 5 of the Securities Act or an applicable exemption from
such registration requirements.
ABOUT GOLUB CAPITAL BDC, INC.
Golub Capital BDC, Inc. invests primarily in senior secured, one
stop, second lien and subordinated loans of, and warrants and
minority equity securities in, 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 over $10 billion of capital
under management, Golub Capital is a leading provider of financing
solutions for the middle market, including one-loan financings
(through the firm's proprietary MiniGOLD, GOLD, and MegaGOLD
facilities), senior, second lien, and subordinated debt, preferred
stock and co-investment equity. The firm underwrites and syndicates
senior credit facilities up to $300
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 2013 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 2013, Golub Capital was awarded
Finance Monthly's Global Awards 2013 "Credit Asset Manager of the
Year," and DealMakers M&A Awards 2013 "Middle Market Lender of
the Year." In 2012, Golub Capital was awarded ACG New York
Champion's Award for "Senior Lender Firm of the Year" and the
M&A Advisor award for "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.