CHICAGO, Nov. 1, 2018 /PRNewswire/ -- Golub Capital
BDC, Inc. a business development company (the "Company") (NASDAQ:
GBDC, www.golubcapitalbdc.com), today announced that its indirect,
wholly-owned and consolidated subsidiary, Golub Capital BDC CLO III
LLC, has priced a twelve year $602.4
million term debt securitization.
The notes offered in the term debt securitization (the "Notes")
are structured as follows:
|
Par
Amount
|
% of
Capital
|
|
Expected
Rating
|
Issuance
|
Tranche
|
($ in
millions)
|
Structure
|
Coupon
|
(S&P/Fitch)
|
Price
|
Class A
Notes
|
$327.0
|
54.3%
|
3 Mos LIBOR +
1.48%
|
AAA / AAA
|
100.0%
|
Class B
Notes
|
$61.2
|
10.2%
|
3 Mos LIBOR +
2.10%
|
AA / NR
|
100.0%
|
Class C-1
Notes
|
$20.0
|
3.3%
|
3 Mos LIBOR +
2.80%
|
A / NR
|
100.0%
|
Class C-2
Notes
|
$38.8
|
6.4%
|
3 Mos LIBOR +
2.65%
|
A / NR
|
99.0%
|
Class D
Notes
|
$42.0
|
7.0%
|
3 Mos LIBOR +
2.95%
|
BBB- / NR
|
98.5%
|
Subordinate
Notes
|
$113.4
|
18.8%
|
N/A
|
N/R
|
N/A
|
Total
|
$602.4
|
100.0%
|
|
|
|
The Company will retain all of the Class C-2 Notes, Class D
Notes and Subordinated Notes through a consolidated subsidiary. The
reinvestment period for the term debt securitization ends in
January 2023 and the Notes are
scheduled to mature in January 2031. The term debt
securitization is expected to be 75% - 90% funded at close with
assets that currently secure the Company's $300.0 million revolving credit facility with
Morgan Stanley Bank, N.A. as lender (the "MS Credit Facility") and
with other assets from the Company's balance sheet.
In addition, today the Company announced that its wholly-owned
subsidiary, Golub Capital BDC 2010-1 LLC, increased the size of the
MS Credit Facility from $300.0
million to $450.0 million. The
other material terms of the Credit Facility were unchanged. The
Company expects to use the increase in borrowing capacity to
acquire additional assets prior to the closing date of $602.4 million term debt securitization which is
expected to close on or prior to November
16, 2018. In connection with the closing of the term debt
securitization, the Company expects that the MS Credit Facility
will repaid in full and that the agreements governing the MS Credit
Facility will be
terminated.
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. Term debt securitizations are
also known collateralized loan obligations ("CLOs") and are a form
of secured financing incurred by the Company, which is consolidated
by the Company and subject to the Company's overall asset coverage
requirements.
ABOUT GOLUB CAPITAL BDC, INC.
Golub Capital BDC Inc. ("Golub Capital BDC") is an
externally-managed, non-diversified closed-end management
investment company that has elected to be regulated as a business
development company under the Investment Company Act of 1940. Golub
Capital BDC invests primarily in one stop and other senior secured
loans of U.S. middle-market companies that are often sponsored by
private equity investors. Golub Capital BDC's investment activities
are managed by its investment adviser, GC Advisors LLC, an
affiliate of the Golub Capital group of companies ("Golub
Capital"). For more information, please visit
www.golubcapitalbdc.com.
ABOUT GOLUB CAPITAL
Golub Capital is a nationally recognized credit asset manager
with over $25 billion of capital
under management. For over 20 years, the firm has provided credit
to help medium-sized U.S. businesses grow. The firm's award-winning
middle market lending business helps provide financing for middle
market companies and their private equity sponsors. Golub Capital's
credit expertise also forms the foundation of its Late Stage
Lending and Broadly Syndicated Loan businesses. Golub Capital has
worked hard to build a reputation as a fast, reliable provider of
compelling financing solutions, and we believe this has inspired
repeat clients and investors. Today, the firm has over 350
employees with lending offices in Chicago, New
York and San Francisco. For
more information, please visit 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.
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SOURCE Golub Capital BDC, Inc.