Golub BDC favours unitranche loans in fiscal Q3

The firm completed a stock offering, raising more than $30m.

Golub Capital BDC originated almost $250 million in the third quarter of its fiscal year, a sizeable increase from the same time last year.

The New York-based business development company, led by David Golub (pictured), made $241.9 million of new commitments for the three months ended 30 June, it said on Friday. Some 88 percent of the loans were unitranche, while 11 percent were senior secured loans and 1 percent were equity investments. Some $235 million were funded at close.

A firm representative declined to comment further.

The Q3 originations figure marks a major uptick from the same period last year, when the firm posted new commitments of $156 million. The majority of those, or 81 percent, were also unitranche loans, while 17 percent were senior secured loans, less than 1 percent was subordinated debt and 2 percent were equity securities.

For the three months ending 31 March this year, its second fiscal quarter, GBDC originated $97.1 million, 57 percent of which were senior secured loans, 42 percent unitranche and 1 percent equity investments.

The firm also completed a $32.74 million stock offering in early June through which GBGC offered 1.75 million shares at $18.71 apiece, according to the offering prospectus filed with the US Securities and Exchange Commission.

Net of fees, the offering brought in $32.6 million, proceeds the firm planned to use to invest in portfolio companies along with possibly of capitalising its Senior Loan Fund joint venture with RGA Reinsurance Company and Small Business Investment Company VI vehicle. Other use of the proceeds could include fee payments and servicing the debt under its credit facility with Wells Fargo Bank.