Golub Capital BDC, Inc., (NASDAQ: GBDC) shares were virtually unchanged Wednesday, as business development company announced estimated financial results for its first fiscal quarter ended December 31, 2023.
The Company has elected to provide these preliminary estimated results in connection with the announcement of the increase in the base quarterly distribution to $0.39 per share from $0.37 per share and the agreement by GC Advisors LLC, GBDC’s investment adviser, to unilaterally waive incentive fees to reduce the income and capital gain incentive fee rates from 20.0% to 15.0%.
During the three months ended December 31, 2023, the Company originated $58.6 million in new middle-market investment commitments. Approximately 84% of the new middle-market investment commitments were one stop loans, 13% were senior secured loans, 3% were equity securities and less than 1% were second lien loans. Of the new middle-market investment commitments, $36.4 million funded at close. Total investments at fair value are estimated to have decreased by approximately $72.9 million during the three months ended December 31, 2023 after factoring in debt repayments, sales of securities, net fundings on revolvers, and net change in unrealized gains (losses).
“GBDC’s strong preliminary results for the quarter validate our confidence in the Company’s earnings power. GBDC continued to generate record Adjusted Net Investment Income per share and credit quality remained strong. GBDC’s increased profitability, coupled with strong credit results, allowed NAV to increase even as distributions to shareholders also increased,” said CEO David Golub.
GBDC shares dipped four cents to $15.04.
Related Stories
