Sunday, December 10, 2023

Golub Capital BDC Inc Reports Record Adjusted Net Investment Income in Q4 Fiscal 2023

  • Adjusted Net Investment Income hits highest-ever at $0.50 per share in Q4.
  • Net asset value per share increased to $15.02 from $14.83 in the previous quarter.
  • GBDC declares a quarterly distribution of $0.37 per share and a supplemental distribution of $0.07 per share.
  • Investment portfolio at fair value slightly decreased to $5.516 billion from $5.525 billion.

Financial Performance Overview

GBDC's net investment income per share rose to $0.49 for the quarter, up from $0.43 in the preceding quarter. The company's net asset value per share also increased from $14.83 to $15.02, reflecting a positive trend in the underlying value of GBDC's investments. The Adjusted Net Investment Income, which excludes the amortization of the purchase premium from the GCIC acquisition, stood at $0.50 per share, indicating robust operational performance.

The company's investment portfolio at fair value experienced a slight dip to $5.516 billion from $5.525 billion in the previous quarter. However, total assets remained relatively stable at $5.733 billion. GBDC's earnings per share for the quarter were reported at $0.60, compared to $0.43 in the June 30, 2023 quarter, showcasing a solid increase in profitability.

Distributions and Share Repurchase Program

GBDC declared a quarterly distribution of $0.37 per share and a supplemental distribution of $0.07 per share, reflecting its commitment to delivering shareholder value. The company also continued its share repurchase program, buying back approximately $0.1 million worth of shares during the quarter, which demonstrates confidence in the intrinsic value of its stock.

Portfolio Composition and Investment Activity

The company's investment portfolio consisted of 342 portfolio companies as of September 30, 2023, with senior secured loans and one-stop loans comprising the majority of the investments. New investment commitments during the quarter totaled $129.55 million, with one-stop loans accounting for the largest share at 80.4%.

Liquidity and Capital Resources

GBDC reported cash and cash equivalents of $69.8 million and restricted cash and cash equivalents of $70.4 million. The company had $3.133 billion of debt outstanding and approximately $703.1 million of remaining availability on its revolving credit facility with JPMorgan, indicating a strong liquidity position to support ongoing investment activities.

Asset Quality and Future Outlook

GC Advisors, GBDC's investment adviser, regularly assesses the risk profile of the company's investments, with the majority of the portfolio maintaining favorable internal performance ratings. Looking ahead, GBDC is positioned to continue its strategy of investing in middle market companies, often sponsored by private equity investors, while managing its portfolio to optimize returns and maintain asset quality.

For additional details on GBDC's financial results, including portfolio and investment activities, as well as liquidity and capital resources, interested parties can...

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