The following is a summary of the Golub Capital BDC (GBDC) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Golub Capital BDC reported record adjusted net investment income per share of $0.51 for Q2 and an annualized ROE of 13.5%.

• Adjusted earnings per share reached $0.55, resulting in an adjusted ROE of 14.6% on an annualized basis.

• The company recorded a small gain of $0.04 per share from net realized and unrealized activities.

• The company's NAV per share grew by $0.09 quarter-over-quarter to achieve $15.12 as of March 31st.

• Golub's Board approved a regular quarterly distribution of $0.39 per share and a supplemental distribution of $0.06 per share for fiscal Q2.

• Due to adjusted NII significantly surpassing the regular quarterly distribution, the company's distribution coverage ratio reached 131%.

Business Progress:

• Golub Capital BDC declared a merger agreement with Golub Capital BDC 3, positioning GBDC as the remaining entity upon completion of the merger.

• As part of the merger agreement, the company's investment advisor agreed to reduce the income and the capital gain incentive fees from 20% to 15%.

• The decrease in incentive fees started in January 2024 and will be permanent upon the merger's closure.

• GBDC managed to control its new investments, ending the quarter with a GAAP debt-to-equity ratio of 1.15 times, within its targeted range.

• With the merger, GBDC anticipates a NAV increase estimated at $0.38 per share or about 2.5%, dependent on GBDC's stock price as of April 9, 2024.

• Amid a shift in investor sentiment and an evolving lending environment, GBDC remains committed to priority on quality over quantity and is prepared to strategically navigate through market changes.

More details: Golub Capital BDC IR

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