NEW YORK, Jan. 20, 2021 /PRNewswire/ -- Golub Capital
BDC, Inc. (NASDAQ: GBDC) ("we," "us," "our," "GBDC" or the
"Company") announced preliminary estimates of certain financial
results for its first fiscal quarter ended December 31,
2020.
Set forth in the table below are certain preliminary estimates
of our financial condition and results of operations for the three
months ended December 31, 2020. These estimates are subject to
the completion of financial closing procedures and are not a
comprehensive statement of the Company's financial results for the
three months ended December 31, 2020. Actual results may
differ materially from these estimates as a result of the
completion of our financial closing procedures, final adjustments
and other developments arising between now and the time that
financial quarterly results for the three months ended
December 31, 2020 are finalized. These preliminary estimates
have been prepared by, and are the responsibility of, management.
Our independent registered public accounting firm has not audited,
reviewed, compiled or performed any procedures with respect to such
preliminary estimates, and, accordingly, does not express an
opinion or any other form of assurance with respect thereto.
"GBDC expects to report strong net income and solid credit
results for the quarter ended December 31, 2020," said
David B. Golub, Chief Executive
Officer of GBDC. "We believe the portfolio's performance since the
onset of COVID-19 validates our underwriting focus on resilient
businesses backed by strong private equity sponsors."
The Company began in April 2020
providing supplemental, preliminary estimates of its quarterly
financial performance in light of financial market volatility and
the evolving economic impact from COVID-19. Given that market
volatility and uncertainty have decreased considerably since that
time, we currently plan to return to our normal course of reporting
for our second fiscal quarter financial results.
PRELIMINARY
ESTIMATES OF CERTAIN FINANCIAL RESULTS
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Estimated Ranges
for the three
months ended December 31, 2020
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Net Investment
Income Per Share
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Net investment income
per share
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$
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0.22
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$
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0.23
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Amortization of
purchase premium per share1
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0.05
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0.06
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Adjusted net
investment income per share1
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0.27
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0.29
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Net
Realized/Unrealized Gain (Loss) Per Share
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Net
realized/unrealized gain (loss) per share
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0.29
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0.36
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Reversal of
unrealized loss resulting from the amortization of the purchase
price premium per share1
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(0.05)
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(0.06)
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Adjusted net
realized/unrealized gain (loss) per share1
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0.24
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0.30
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Earnings per
Share
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Earnings per
share
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0.51
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0.59
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Adjusted earnings per
share1
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0.51
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0.59
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Based on the estimated range of earnings per share in the table
above, the Company is estimating a net asset value per share
between $14.55 and $14.63 as of December 31, 2020, as shown
below:
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Net Asset Value
per Share
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Actual net asset
value per share, September 30, 2020
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$
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14.33
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$
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14.33
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Estimated earnings
per share for the three months ended December 31, 2020
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0.51
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0.59
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Dividend paid per
share on December 30, 2020
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(0.29)
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(0.29)
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Estimated net asset
value per share, December 31, 2020
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$
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14.55
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$
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14.63
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1
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On September 16,
2019, the Company completed its acquisition of Golub Capital
Investment Corporation ("GCIC"). The acquisition was accounted for
under the asset acquisition method of accounting in accordance with
Accounting Standards Codification 805-50, Business Combinations -
Related Issues. Under asset acquisition accounting, where the
consideration paid to GCIC's stockholders exceeded the relative
fair values of the assets acquired and the liabilities assumed, the
premium paid by the Company was allocated to the cost of the GCIC
assets acquired by the Company pro-rata based on their relative
fair value. Immediately following the acquisition of GCIC, the
Company recorded its assets at their respective fair values and, as
a result, the purchase premium allocated to the cost basis of the
GCIC assets acquired was immediately recognized as unrealized
depreciation on the Company's Consolidated Statement of Operations.
The purchase premium allocated to investments in loan securities
acquired from GCIC will amortize over the life of the loans through
interest income with a corresponding reversal of the unrealized
depreciation on such loans acquired through their ultimate
disposition. The purchase premium allocated to investments in
equity securities will not amortize over the life of the equity
securities through interest income and, assuming no subsequent
change to the fair value of the GCIC equity securities acquired and
disposition of such equity securities at fair value, the Company
will recognize a realized loss with a corresponding reversal of the
unrealized depreciation upon disposition of the GCIC equity
securities acquired.
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As a supplement to U.S. generally accepted accounting principles
("GAAP") financial measures, the Company is providing the following
estimates of non-GAAP financial measures that it believes are
useful for the reasons described below:
- "Adjusted Net Investment Income Per Share" - excludes
the amortization of the purchase premium and the accrual for the
capital gain incentive fee (including the portion of such accrual
that is not payable under the Company's investment advisory
agreement) from net investment income calculated in accordance
with GAAP.
- "Adjusted Net Realized and Unrealized Gain/(Loss) Per
Share" - excludes the unrealized loss resulting from the
purchase premium write-down and the corresponding reversal of the
unrealized loss from the amortization of the premium on loans or
from the sale of equity investments from the determination of
realized and unrealized gain/(loss) determined in accordance with
GAAP.
- "Adjusted Earnings Per Share" - calculates net income
and earnings per share based on Adjusted Net Investment Income Per
Share and Adjusted Net Realized and Unrealized Gain/(Loss) Per
Share.
The Company believes that excluding the financial impact of the
purchase premium in the above non-GAAP financial measures is useful
for investors as it is a non-cash expense/loss resulting from the
acquisition of GCIC and is one method the Company uses to measure
its financial condition and results of operations. In addition, the
Company believes excluding the accrual of the capital gain
incentive fee in the above non-GAAP financial measures is useful as
it includes the portion of such accrual that is not contractually
payable under the terms of the Company's investment advisory
agreement with GC Advisors. Although these estimates of non-GAAP
financial measures are intended to enhance investors' understanding
of our business and performance, these non-GAAP financial measures
should not be considered an alternative to GAAP.
Other First Fiscal Quarter 2021 Preliminary Estimates
- During the three months ended December 31, 2020, the
Company estimates originations in new middle market investment
commitments were $526.8 million.
Approximately 75.0% of the new middle-market investment commitments
were one stop loans, 22.0% were senior secured loans and 3.0% were
equity and other securities. Total investments at fair value are
estimated to have increased by approximately $266.3 million during the three months ended
December 31, 2020 after factoring in debt repayments, sales of
securities, net fundings on revolvers, and net change in unrealized
gains (losses).
- As of December 31, 2020, the Company estimates it had well
over $350.0 million of liquidity in
the form of cash, restricted cash, available commitments under its
revolving credit facilities, and undrawn SBIC debentures and a GAAP
debt-to-equity ratio between 0.94x and 0.98x.
- As of December 31, 2020, the Company was in compliance
with all of its covenants under its revolving credit facilities and
debt securitizations.
- As of December 31, 2020, the Company estimates that
non-accrual investments declined again as a percentage of total
investments at fair value to less than 1.5% and that non-accrual
investments as a percentage of total investments at cost declined
to less than 2.0%. Additionally, the Company estimates that the
number of non-accrual investments decreased from nine investments
as of September 30, 2020 to seven
investments as of December 31,
2020.
Conference Call
The Company will report its financial results for the quarter
ended December 31, 2020 on
Monday, February 8, 2021 after the
close of the financial markets. The Company will host an earnings
conference call at 1:00 p.m. (Eastern Time)
on Tuesday, February 9, 2021 to discuss its quarterly
financial results. All interested parties may participate in the
conference call by dialing (833) 900-2240 approximately 10-15
minutes prior to the call; international callers should dial +1
(236) 714-2752. Participants should reference Golub Capital BDC,
Inc. when prompted. An archived replay of the call will be
available shortly after the call until 12:00
a.m. (Eastern Time) on February 16,
2021. To hear the replay, please dial (800) 585-8367.
International dialers, please dial +1 (416) 621-4642. For all
replays, please reference program ID number 7894556.
ABOUT GOLUB CAPITAL BDC, INC.
Golub Capital BDC, Inc. ("GBDC") is an externally-managed,
non-diversified closed-end management investment company that has
elected to be treated as a business development company under the
Investment Company Act of 1940. GBDC invests primarily in one stop
and other senior secured loans to middle market companies that are
often sponsored by private equity investors. GBDC's investment
activities are managed by its investment adviser, GC Advisors LLC,
an affiliate of the Golub Capital LLC group of companies ("Golub
Capital").
ABOUT GOLUB CAPITAL
Golub Capital is a market-leading, award-winning direct lender
and credit asset manager, with over $35
billion of capital under management. Golub Capital
specializes in delivering reliable, creative and compelling
financing solutions to middle market companies backed by private
equity sponsors. The firm's credit expertise also forms the
foundation of its Late Stage Lending business and its Broadly
Syndicated Loan investment program. Across its activities, Golub
Capital nurtures long-term, win-win partnerships that inspire
repeat business from its private equity sponsor clients and
investors. Founded over 25 years ago, Golub Capital today has over
500 employees and lending offices in Chicago, New
York and San Francisco. For
more information, please visit golubcapital.com.
FORWARD-LOOKING STATEMENTS
This press release may contain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Statements other than statements of historical facts
included in this press release may constitute forward-looking
statements and are not guarantees of future performance or results
and involve a number of risks and uncertainties. Actual results may
differ materially from those expressed or implied in the
forward-looking statements as a result of a number of factors,
including those described from time to time in filings with the
Securities and Exchange Commission. Golub Capital BDC, Inc.
undertakes no duty to update any forward-looking statement made
herein. All forward-looking statements speak only as of the date of
this press release.
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SOURCE Golub Capital BDC, Inc.