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Item 1.01
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Entry into a Material Definitive Agreement.
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On July 20, 2018, Golub Capital BDC 2010-1 LLC (the “Borrower”),
an indirect wholly-owned subsidiary of Golub Capital BDC, Inc. (the “Company”), entered into a credit facility (the
“Credit Facility”). In connection with the Credit Facility, the Borrower entered into (i) a Credit Agreement (the “Credit
Agreement”) with Morgan Stanley Bank, N.A., as lender, Morgan Stanley Senior Secured Funding, Inc., as administrative agent,
and U.S. Bank National Association, as collateral agent for the administrative agent and the lenders, (ii) a Security Agreement
(the “Security Agreement”) with Morgan Stanley Senior Funding, Inc., as administrative agent, and U.S. Bank National
Association, as collateral agent, and (iii) a Warehouse Collateral Management Agreement (the “Collateral Management Agreement”)
with Morgan Stanley Senior Funding, Inc., as administrative agent, and GC Advisors LLC, as the warehouse collateral manager (the
“Collateral Manager”).
Under the Credit Facility, which matures on March 20, 2019,
the lender has agreed to extend credit to the Borrower in an aggregate principal amount of up to $300 million. The period from
the closing date until January 21, 2019 is referred to as the revolving period and during such revolving period, the Borrower may
request drawdowns under the Credit Facility. During the period prior to the last day of the revolving period, borrowings under
the Credit Facility will bear interest at a rate equal to the one-month London Interbank Offered Rate (“LIBOR”) plus
1.90%. Commencing on the last day of the revolving period, the interest rate on borrowings under the Credit Facility will reset
to one-month LIBOR plus 2.15% for the remaining term of the Credit Facility.
The Credit Facility is secured by all of the assets held by
the Borrower under the Security Agreement. Pursuant to the Collateral Management Agreement, the Collateral Manager has agreed to
perform certain duties with respect to the purchase and management of the assets securing the Credit Facility. The Collateral Manager
will not be paid a fee under the Collateral Management Agreement. The Borrower has agreed to reimburse the expenses incurred by
the Collateral Manager in the performance of its obligations under the Collateral Management Agreement other than any ordinary
overhead expenses, which shall not be reimbursed. The Borrower has made customary representations and warranties and is required
to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. Borrowing
under the Credit Facility is subject to the leverage restrictions contained in the Investment Company Act of 1940, as amended.
The description above is only a summary of the material provisions
of the Credit Facility and is qualified in its entirety by reference to copies of the Credit Agreement, the Security Agreement
and the Collateral Management Agreement, which are filed as Exhibits 10.1, 10.2, and 10.3, respectively, to this current report
on Form 8-K and incorporated by reference herein.
On July 23, 2018, the Company issued a press release announcing
it had entered into the Credit Facility. A copy of this press release is attached hereto as Exhibit 99.1.