The following is a summary of the Golub Capital BDC (GBDC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Golub Capital BDC (GBDC) reported Q1 adjusted net investment income per share of $0.50 and adjusted earnings per share of $0.45.
Despite a slight net realized and unrealized loss of $0.05/share, overall credit results remained strong with no new defaults and a decrease in non-accruals.
Net Asset Value (NAV) per share increased by $0.01 quarter-over-quarter, achieving $15.03 as of December 31.
The firm's balance sheet showed a decline in net funds by $73.2 million.
A distribution of $0.46 per share was approved, including a regular quarterly distribution of $0.39 per share and a supplemental distribution of $0.07 per share.
GBDC accessed the investment-grade debt market with issuances of $450 million and $600 million, ending the quarter with over $1.3 billion of liquidity.
Business Progress:
GBDC announced a definitive merger agreement with Golub Capital BDC 3 Inc, with GBDC as the surviving company. This is subject to stockholder approvals and customary closing conditions.
Fees were adjusted and reduced to support the proposed merger, adding to the potential earnings power of GBDC post the merger.
Non-accruals decreased to 1.1% at 12/31/2023, down from 1.2% at 9/30/2023 while the net leverage went down modestly to 1.18x.
An increase in deal activity is expected in 2024, particularly in the second half of the year.
GBDC's portfolio remained consistent with one-stop loans making up around 86% of the portfolio at fair value and 94% of GBDC's portfolio comprised of first-lien senior-secured floating-rate loans.
More details: Golub Capital BDC IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.