Goldman Sachs BDC, Inc. Amends Its Revolving Credit Facility In Connection with Its Reduced Asset Coverage Requirement
September 17 2018 - 4:50PM
Business Wire
Goldman Sachs BDC, Inc. (the “Company”, “GS BDC”) (NYSE:GSBD)
announced today that it has amended its senior secured revolving
credit agreement (the “Revolving Credit Facility”) to, among other
things, reduce the Company’s minimum asset coverage ratio financial
covenant from 200% to 150% as further described in the Revolving
Credit Facility. There was no fee or change in borrowing cost under
the Revolving Credit Facility in connection with the amendment.
This amendment follows the passage of the Small Business Credit
Availability Act (“SBCA Act”) in March, 2018, which seeks to
increase the availability of funding to middle market U.S.
companies by increasing capital available to business development
companies, such as GS BDC.
“Since the passage of the SBCA Act approximately six months ago,
we have worked diligently to secure the necessary approvals from
our various stakeholders to position the Company to benefit from
the increased flexibility resulting from the change in law. This
amendment to our credit facility marks the last necessary approval
in that process, and we look forward to continuing to execute our
core strategy of direct lending to middle market businesses, but
with the added benefit of a broader product set for borrowers,”
said Brendan McGovern, CEO of the Company.
Jonathan Lamm, the Company’s Chief Financial Officer, remarked,
“We appreciate the thought leadership from our lending syndicate as
we executed on this important amendment to our borrowing facility.
We expect to continue to finance the Company in a prudent manner,
which includes seeking to further diversify our sources of funding,
and endeavoring to maintain a meaningful cushion to the asset
coverage limitation.”
For further information, please see the Company’s current report
on Form 8-K filed with the Securities and Exchange Commission on
September 17, 2018.
ABOUT GOLDMAN SACHS BDC, INC.
Goldman Sachs BDC, Inc. is a specialty finance company that has
elected to be regulated as a business development company under the
Investment Company Act of 1940. GS BDC was formed by The Goldman
Sachs Group, Inc. (“Goldman Sachs”) to invest primarily in
middle-market companies in the United States, and is externally
managed by Goldman Sachs Asset Management, L.P., an SEC-registered
investment adviser and a wholly-owned subsidiary of Goldman Sachs.
GS BDC seeks to generate current income and, to a lesser extent,
capital appreciation primarily through direct originations of
secured debt, including first lien, first lien/last-out unitranche
and second lien debt, and unsecured debt, including mezzanine debt,
as well as through select equity investments. For more information,
visit www.goldmansachsbdc.com. Information on the website is not
incorporated by reference into this press release and is provided
merely for convenience.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements that
involve substantial risks and uncertainties. You can identify these
statements by the use of forward-looking terminology such as “may,”
“will,” “should,” “expect,” “anticipate,” “project,” “target,”
“estimate,” “intend,” “continue,” or “believe” or the negatives
thereof or other variations thereon or comparable terminology. You
should read statements that contain these words carefully because
they discuss our plans, strategies, prospects and expectations
concerning our business, operating results, financial condition and
other similar matters. These statements represent the Company’s
belief regarding future events that, by their nature, are uncertain
and outside of the Company’s control. We believe that it is
important to communicate our future expectations to our investors.
There are likely to be events in the future, however, that we are
not able to predict accurately or control. Any forward-looking
statement made by us in this press release speaks only as of the
date on which we make it. Factors or events that could cause our
actual results to differ, possibly materially from our
expectations, include, but are not limited to, the risks,
uncertainties and other factors we identify in the sections
entitled “Risk Factors” and “Cautionary Statement Regarding
Forward-Looking Statements” in filings we make with the Securities
and Exchange Commission, and it is not possible for us to predict
or identify all of them. We undertake no obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise, except as required
by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20180917005772/en/
Goldman Sachs BDC, Inc.Investors:Katherine Schneider,
212-902-3122orMedia:Patrick Scanlan, 212-902-6164
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