NEW YORK--(BUSINESS WIRE)-- Golub Capital BDC, Inc., a business development company (Nasdaq: GBDC), today announced its financial results for its second fiscal quarter ended March 31, 2025.

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, except per share data)
		March 31, 2025				December 31, 2024
Investment portfolio, at fair value		$	8,621,220			$	8,685,231
Total assets		$	8,949,865			$	9,008,786
Net asset value per share		$	15.04			$	15.13
		Quarter Ended
		March 31, 2025				December 31, 2024
Net investment income per share		$	0.37			$	0.37
Amortization of purchase premium per share			0.02				0.02
Adjusted net investment income per share1		$	0.39			$	0.39
Net realized/unrealized gain/(loss) per share		$	(0.07	)		$	0.05
Reversal of realized/unrealized loss resulting from the amortization of purchase premium per share1			(0.02	)			(0.02	)
Adjusted net realized/unrealized gain/(loss) per share1		$	(0.09	)		$	0.03
Earnings/(loss) per share		$	0.30			$	0.42
Adjusted earnings/(loss) per share1		$	0.30			$	0.42
Net asset value per share		$	15.04			$	15.13
Distributions paid per share		$	0.39			$	0.48

1		On September 16, 2019 and June 3, 2024, the Company completed its acquisition of Golub Capital Investment Corporation (“GCIC”) and Golub Capital BDC 3, Inc. (“GBDC 3”), respectively. Each acquisition was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification 805-50, Business Combinations — Related Issues. Under asset acquisition accounting, where the consideration paid to GCIC and GBDC 3’s stockholders exceeded the relative fair values of the assets acquired, the premium paid by the Company was allocated to the cost of the GCIC and GBDC 3 investments acquired by the Company pro-rata based on their relative fair value. Immediately following each acquisition, the Company recorded its assets at their respective fair values and, as a result, the purchase premium allocated to the cost basis of the assets acquired was immediately recognized as unrealized depreciation on the Company's Consolidated Statement of Operations. The purchase premium allocated to investments in loan securities acquired from GCIC and GBDC 3 will amortize over the life of the loans through interest income with a corresponding reversal of the unrealized depreciation on such loans acquired through their ultimate disposition. The purchase premium allocated to investments in equity securities will not amortize over the life of the equity securities through interest income and, assuming no subsequent change to the fair value of the GCIC and GBDC 3 equity securities acquired and disposition of such equity securities at fair value, the Company will recognize a realized loss with a corresponding reversal of the unrealized depreciation upon disposition of the GCIC and GBDC 3 equity securities acquired.
		As a supplement to U.S. generally accepted accounting principles (“GAAP”) financial measures, the Company is providing the following non-GAAP financial measures that it believes are useful for the reasons described below: “Adjusted Net Investment Income” and “Adjusted Net Investment Income Per Share” – excludes the amortization of the purchase premium from net investment income calculated in accordance with GAAP. “Adjusted Net Investment Income Before Accrual for Capital Gain Incentive Fee” - Adjusted Net Investment Income excluding the accrual or reversal for the capital gain incentive fee required under GAAP; “Adjusted Net Realized and Unrealized Gain/(Loss)” and “Adjusted Net Realized and Unrealized Gain/(Loss) Per Share” – excludes the unrealized loss resulting from the purchase premium write-down and the corresponding reversal of the unrealized loss from the amortization of the premium from the determination of realized and unrealized gain/(loss) in accordance with GAAP. “Adjusted Net Income/(Loss)” and “Adjusted Earnings/(Loss) Per Share” – calculates net income and earnings per share based on Adjusted Net Investment Income and Adjusted Net Realized and Unrealized Gain/(Loss).
		The Company believes that excluding the financial impact of the purchase premium write down in the above non-GAAP financial measures is useful for investors as it is a non-cash expense/loss resulting from the acquisitions of GCIC and GBDC 3 and is one method the Company uses to measure its financial condition and results of operations. In addition, the Company believes excluding the accrual of the capital gain incentive fee under GAAP is useful as a portion of such accrual is not contractually payable under the terms of the Company’s investment advisory agreement with GC Advisors.

Second Fiscal Quarter 2025 Highlights

• Net investment income per share for the quarter ended March 31, 2025 remained consistent at $0.37 compared to the quarter ended December 31, 2024. Excluding $0.02 per share in purchase premium amortization from the GCIC/GBDC 3 acquisitions, and no accrual or reversal for the capital gain incentive fee under GAAP, Adjusted Net Investment Income Per Share¹for the quarters ended March 31, 2025 and December 31, 2024 was $0.39.
• Net realized and unrealized gain/(loss) per share for the quarter ended March 31, 2025 was $(0.07). Adjusted Net Realized and Unrealized Gain/(Loss) Per Share¹was ($0.09) when excluding $0.02 per share net reversal of unrealized depreciation and realized loss resulting from the amortization of the purchase premium. The Adjusted Net Realized and Unrealized Gain/(Loss) Per Share¹for the quarter ended March 31, 2025 was primarily due to (i) unrealized depreciation resulting from the underperformance of certain portfolio companies and (ii) net realized losses recognized on the restructuring of debt and equity investments of two portfolio companies that was partially offset by net realized and unrealized gains recognized on the translation of foreign currency transactions. For additional analysis, please refer to the Quarter Ended 03.31.2025 Earnings Presentation available on the Investor Resources link on the homepage of the Company's website (www.golubcapitalbdc.com) under Events/Presentations. The Earnings Presentation was also filed with the Securities and Exchange Commission as an Exhibit to a Form 8-K. These results compare to net realized and unrealized gain/(loss) per share of $0.05 during the quarter ended December 31, 2024. Adjusted Net Realized and Unrealized Gain/(Loss) Per Share¹for the quarter ended December 31, 2024 was $0.03 when excluding $0.02 per share net reversal of unrealized depreciation and realized loss resulting from the amortization of the purchase premium.
• Earnings per share for the quarter ended March 31, 2025 was $0.30 as compared to $0.42 for the quarter ended December 31, 2024. Adjusted Earnings Per Share¹for the quarter ended March 31, 2025 was $0.30 as compared to $0.42 for the quarter ended December 31, 2024.
• Net asset value (“NAV”) per share decreased to $15.04 at March 31, 2025 from $15.13 at December 31, 2024.
• On March 28, 2025 we paid a quarterly distribution of $0.39 per share.
• On May 2, 2025, our board of directors declared a quarterly distribution of $0.39 per share, which is payable on June 27, 2025, to stockholders of record as of June 13, 2025.
• Accretive capital management in response to market volatility through (i) issuance of 2.4 million shares of our common stock, at a premium to NAV, under our equity distribution agreement with net proceeds totaling approximately $38 million, after giving effect to sales agents’ commissions and certain estimated offering expenses and (ii) during the period March 1, 2025 through May 5, 2025 we repurchased approximately 2.5 million shares of our common stock for an aggregate purchase price of approximately $35 million, at an aggregate price of $14.00 per share.
• During the three months ended March 31, 2025, the Golub Capital Employee Grant Program Rabbi Trust (the “Trust”) purchased approximately $13.0 million, or 832,821 shares, of our common stock for the purpose of awarding incentive compensation to employees of Golub Capital. During calendar year 2024, the Trust purchased approximately $10.1 million, or 670,760 shares, of our common stock.

Portfolio and Investment Activities

As of March 31, 2025, the Company had investments in 393 portfolio companies with a total fair value of $8,621.2 million. This compares to the Company’s portfolio as of December 31, 2024, as of which date the Company had investments in 386 portfolio companies with a total fair value of $8,685.2 million. Investments in portfolio companies as of March 31, 2025 and December 31, 2024 consisted of the following:

		As of March 31, 2025						As of December 31, 2024
		Investments			Percentage of			Investments			Percentage of
		at Fair Value			Total			at Fair Value			Total
Investment Type		(In thousands)			Investments			(In thousands)			Investments
Senior secured		$	466,973		5.4	%		$	476,601		5.5	%
One stop			7,481,347		86.8				7,543,323		86.8
Junior debt*			59,273		0.7				56,332		0.7
Equity			613,627		7.1				608,975		7.0
Total		$	8,621,220		100.0	%		$	8,685,231		100.0	%

*

Junior debt is comprised of second lien and subordinated debt.

The following table shows the asset mix of our new investment commitments for the three months ended March 31, 2025:

	New Investment
	Commitments			Percentage of
	(In thousands)			Commitments
Senior secured	$	22,058		7.4	%
One stop		272,985		91.3
Equity		3,907		1.3
Total new investment commitments	$	298,950		100.0	%

Total investments in portfolio companies at fair value were $8,621.2 million at March 31, 2025. As of March 31, 2025, total assets were $8,949.9 million, net assets were $4,043.5 million and net asset value per share was $15.04.

Consolidated Results of Operations

For the second fiscal quarter of 2025, the Company reported GAAP net income of $79.0 million or $0.30 per share and Adjusted Net Income² of $79.0 million or $0.30 per share. GAAP net investment income was $98.7 million or $0.37 per share and Adjusted Net Investment Income¹ was $103.3 million or $0.39 per share. GAAP net realized and unrealized gain/(loss) was ($19.8) million or ($0.07) per share and Adjusted Realized and Unrealized Gain/(Loss)¹ was ($24.4) million or ($0.09) per share.

Net income can vary substantially from period to period due to various factors, including the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful.

Liquidity and Capital Resources

The Company’s liquidity and capital resources are derived from the Company’s debt securitizations (also known as collateralized loan obligations, or CLOs), unsecured notes, revolving credit facilities and cash flow from operations. The Company’s primary uses of funds from operations include investments 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 securitizations, unsecured notes, revolving credit facilities, proceeds from its investment portfolio and proceeds from offerings of its securities and its dividend reinvestment plan to finance its investment objectives.

As of March 31, 2025, we had cash, cash equivalents and foreign currencies of $116.9 million, restricted cash and cash equivalents and restricted foreign currencies of $129.5 million, which included $29.6 million of restricted cash retained for partial repayments on the notes of certain of our debt securitizations that are past their reinvestment period term, and $4,833.2 million of debt outstanding. As of March 31, 2025, subject to leverage and borrowing base restrictions, we had approximately $887.4 million of remaining availability, in the aggregate, on our revolving credit facility with JPMorgan. In addition, as of March 31, 2025, we had $200.0 million of remaining commitments and availability on our unsecured line of credit with GC Advisors.

On April 4, 2025, we amended our revolving credit facility with JPMorgan to, among other things, (i) change the applicable margin to a range of 1.525% to 1.775%, (ii) reduce the unused fee rate on all unused commitments to 0.325% from 0.375%, (iii) extend the maturity date to April 4, 2030 from August 6, 2029 and (iv) amend the accordion provision to permit increases to the total commitments to up to $3.0 billion.

The Company’s GAAP leverage ratio decreased to 1.21x as of March 31, 2025 and our GAAP debt-to-equity ratio, net³ decreased to 1.16x as of March 31, 2025 (1.17x, on average, throughout the quarter ended March 31, 2025).

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 an internal system developed by Golub Capital and its affiliates. This system is not generally accepted in our industry or used by our competitors. It is based on the following categories, which we refer to as GC Advisors’ internal performance ratings:

Internal Performance Ratings
Rating		Definition
5		Involves the least amount of risk in our portfolio. The borrower is performing above expectations, and the trends and risk factors are generally favorable.
4		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.
3		Involves a borrower performing below expectations and indicates that the loan’s risk has increased somewhat since origination. The borrower could be out of compliance with debt covenants; however, loan payments are generally not past due.
2		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 could be past due (but generally not more than 180 days past due).
1		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.

Our internal performance ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments. For additional analysis on the Company's internal performance ratings as of March 31, 2025, please refer to the Quarter Ended 03.31.2025 Earnings Presentation available on Investors Resources link on the homepage of the Company's website (www.golubcapitalbdc.com) under Events/Presentations.

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, 2025 and December 31, 2024:

		March 31, 2025						December 31, 2024
Internal		Investments			Percentage of			Investments			Percentage of
Performance		at Fair Value			Total			at Fair Value			Total
Rating		(In thousands)			Investments			(In thousands)			Investments
5		$	121,114		1.4	%		$	232,260		2.7	%
4			7,609,108		88.3				7,578,339		87.2
3			769,096		8.9				763,677		8.8
2			121,902		1.4				110,953		1.3
1			—		—				2		0.0 *
Total		$	8,621,220		100.0	%		$	8,685,231		100.0	%

*

Represents an amount less than 0.1%.

Conference Call
The Company will host an earnings conference call at 12:00 pm (Eastern Time) on Tuesday, May 6, 2025 to discuss the quarterly financial results. All interested parties may participate in the conference call by dialing (888) 596-4144 approximately 10-15 minutes prior to the call; international callers should dial (646) 968-2525. 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 Investor Resources link on the homepage of our website (www.golubcapitalbdc.com) and click on the Quarter Ended 03.31.2025 Earnings Presentation under Events/Presentations. An archived replay of the call will be available shortly after the call until 11:59 p.m. (Eastern Time) on May 13, 2025. To hear the replay, please dial (800) 770-2030. International dialers, please dial +1 (609) 800-9909. For all replays, please reference program ID number 5111111.

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(In thousands, except share and per share data)
		March 31, 2025				December 31, 2024
Assets		(unaudited)				(unaudited)
Investments, at fair value (cost of $8,672,620 and $8,755,566, respectively)		$	8,621,220			$	8,685,231
Cash and cash equivalents			103,136				103,508
Unrestricted foreign currencies (cost of $13,763 and $6,825, respectively)			13,791				6,769
Restricted cash and cash equivalents			129,457				110,597
Interest receivable			65,743				73,296
Other assets			16,518				29,385
Total Assets		$	8,949,865			$	9,008,786
Liabilities
Debt		$	4,833,150			$	4,919,258
Less unamortized debt issuance costs			(26,232	)			(28,694	)
Debt less unamortized debt issuance costs			4,806,918				4,890,564
Interest payable			50,473				51,518
Management and incentive fees payable			40,869				38,823
Accounts payable and accrued expenses			8,107				10,337
Total Liabilities			4,906,367				4,991,242
Net Assets
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively.			—				—
Common stock, par value $0.001 per share, 500,000,000 shares authorized, 268,831,114 issued and outstanding as of March 31, 2025; 350,000,000 shares authorized, 265,498,597 issued and outstanding as of December 31, 2024.			269				265
Paid in capital in excess of par			4,237,261				4,185,811
Distributable earnings			(194,032	)			(168,532	)
Total Net Assets			4,043,498				4,017,544
Total Liabilities and Total Net Assets		$	8,949,865			$	9,008,786
Number of common shares outstanding			268,831,114				265,498,597
Net asset value per common share		$	15.04			$	15.13

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except share and per share data)
		Three months ended
		March 31, 2025				December 31, 2024
		(unaudited)				(unaudited)
Investment income
Interest income		$	208,895			$	217,306
Acquisition purchase price premium amortization			(4,592	)			(5,686	)
Dividend income			7,877				8,487
Fee income			1,712				593
Total investment income			213,892				220,700
Expenses
Interest and other debt financing expenses			69,911				79,643
Base management fee			21,714				21,581
Incentive fee			18,247				18,058
Professional fees			1,765				1,840
Administrative service fee			3,185				2,902
General and administrative expenses			408				561
Total expenses			115,230				124,585
Net expenses			115,230				124,585
Net investment income before tax			98,662				96,115
Excise and Income tax			—				(475	)
Net investment income after tax			98,662				96,590
Net gain (loss) on investment transactions
Net realized gain (loss) from:
Investments			(16,864	)			(25,356	)
Foreign currency transactions			(174	)			(3,705	)
Forward currency contracts			5,997				1,206
Net realized gain (loss) in investment transactions			(11,041	)			(27,855	)
Net change in unrealized appreciation (depreciation) from:
Investments			(4,715	)			43,621
Translation of assets and liabilities in foreign currencies			11,427				(22,973	)
Forward currency contracts			(15,495	)			21,927
Net change in unrealized appreciation (depreciation) on investment transactions			(8,783	)			42,575
Net gain (loss) on investment transactions			(19,824	)			14,720
Net realized gain (loss) on extinguishment of debt			—				(48	)
(Provision) benefit for taxes on unrealized appreciation on investments			146				52
Net increase (decrease) in net assets resulting from operations		$	78,984			$	111,314
Per Common Share Data
Basic and diluted earnings per common share		$	0.30			$	0.42
Dividends and distributions declared per common share		$	0.39			$	0.48
Basic and diluted weighted average common shares outstanding			266,484,213				264,343,512

ABOUT GOLUB CAPITAL BDC, INC.

Golub Capital BDC, Inc. (“GBDC”) is an externally-managed, non-diversified closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. GBDC invests primarily in one stop and other senior secured loans to middle market companies that are often sponsored by private equity investors. GBDC’s investment activities are managed by its investment adviser, GC Advisors LLC, an affiliate of the Golub Capital LLC group of companies ("Golub Capital").

ABOUT GOLUB CAPITAL

Golub Capital is a market-leading, award-winning direct lender and experienced private credit manager. The firm specializes in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. Golub Capital’s sponsor finance expertise also forms the foundation of its Broadly Syndicated Loan and Credit Opportunities investment programs. Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors.

As of January 1, 2025, Golub Capital had over 1,000 employees and over $75 billion of capital under management, a gross measure of invested capital including leverage. The firm has offices in North America, Europe and Asia. For more information, please visit 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.

______________________
1		See footnote 1 to “Selected Financial Highlights” above.
2		See footnote 1 to “Selected Financial Highlights” above.
3		GAAP debt-to-equity, net is calculated as (a) total debt reduced by (i) cash, (ii) cash equivalents and foreign currencies and (iii) restricted cash held for partial repayment on notes of certain of our securitization vehicles past their reinvestment period term (if any) divided by (b) total net assets.

 

Source: Golub Capital BDC, Inc.