News & Analysis

Golub BDC issues 3.5m shares of common stock

 The business development company of the US lending firm is offering the new shares at $17.42. 

By
Anastasia Donde
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Golub Capital BDC has priced an underwritten public offering of 3,500,000 shares of its common stock at a price of $17.42 per share. Wells Fargo Securities, BofA Merrill Lynch and UBS are acting as joint book-running managers for the offering, Golub announced last week (10 April). The lead managers are Raymond James and Keefe, Bruyette & Woods. The offering is expected to close on April 15. Golub BDC is also giving the underwriters an option to purchase up to an additional 525,000 shares of common stock.

The company intends to use the net proceeds from the offering to lend to companies and for general corporate purposes. The company will also use the money for operating expenses, including management and administrative fees, as well as other costs, such as due diligence expenses on new investments.

A portion of the proceeds may also be used to capitalize the Senior Loan Fund, an unconsolidated Delaware LLC that invests in senior secured loans of mid-market companies and is co-managed by Golub and RGA Reinsurance Company. Other uses could include repaying outstanding amounts under Golub BDC’s credit facilities.

The BDC also announced recently that it executed $161.9 million in new mid-market originations in the first quarter. About 63 percent of the new commitments were one-stop loans, 35 percent were senior secured loans and 2 percent were equity securities. During the three months ended March 31, the Golub Capital BDC also invested $17.1 million in the Senior Loan Fund. 

The BDC has publicly traded as “GBDC” on the NASDAQ stock exchange since 2010. The stock closed at $17.68 on Friday. Golub Capital BDC provides senior secured, one-stop, second lien and subordinated loans to mid-market companies, the majority of which are sponsored by private equity firms. Golub Capital BDC's investment activities are managed by its investment adviser, GC Advisors, an affiliate of Golub Capital.

Golub Capital is a credit asset manager with $10 billion of capital under management. The firm’s lending offices are located in Chicago, New York and San Francisco.