Golub BDC raises $25m in equity

A recent SEC filing has shown that Golub’s BDC was able place a $25m equity stake from an institutional investor as many of its peers struggle in public markets.  

Golub Capital BDC (GBDC) has raised $25 million in an equity offering, according to  SEC filing submitted to the regulatory agency  24 July. GBDC did not work with a broker on the transaction, which took place on 17 July, according to the filing.

A GBDC representative declined to provide more detail on the transaction.

GBDC's placed the equity with an unnamed institutional investor, according to the SEC document. The capital raise stands out amid challenging conditions for some of its public BDC peers, some of which continue to see their stock trade at a discount to net asset value (NAV). GBDC stock closed at $19.04 per share on Friday, which represents a more than 20 percent premium to the $15.85 NAV the firm reported at the end of the first quarter.

Last month (11 July) GBDC announced that it had originated $156 million in mid-market commitments during the three months that ended 30 June, a slight improvement over the $150.8 million in originations reported in the 2016 first quarter.

According to the statement , 81 percent of the firm's second quarter commitments came under its series of unitranche facilities, while 17 percent were senior secured loans and the remainder were divided between subordinated debt loans and equity securities. The firm will report its second quarter earnings on Wednesday (3 August).

GBDC is the BDC of Golub Capital, a Chicago-headquartered credit asset manager with over $18 billion in capital under management. GBDC invests primarily in senior secured loans and one stop loans of mid-market companies, often those sponsored by private equity firms.