Golub BDC rises in assets, profit stays flat

The vehicle also experienced an unusually strong quarter in terms of new originations totaling $332.6 million.

Golub Capital’s business development company has increased its capital and kept its profit at about the same level, as evidenced in its earnings report released last week (18 November). The BDC’s assets went up to $1.35 billion on September 30 from $1.32 billion at the end of June, while net investment income dropped slightly to $14.9 million from $15.1 million or 0.32 cents per share in both quarters.

David Golub, chief executive of the BDC, said on the earnings call that the firm had a strong quarter in terms of new originations. working on $332.6 million of those. “This was unusual because the quarter ended September 30 is usually a slow quarter,” he said. “It’s also interesting to note that, our high originations in this quarter came despite us being more selective.” Of the new originations, 81 percent were one-stop or unitranche loans, 11 percent were traditional senior secured loans, 6 percent were second lien loans and 2 percent were equity co-investments.

The Golub Capital BDC (GBDC) is listed on the NASDAQ stock exchange and has been trading in the $16 to $18 per share range, after closing at $18.53 at the end of 2013. The BDC is externally managed by GC Advisors, an affiliate of US mid-market lender Golub Capital, which handles $10 billion in a variety of debt strategies. The firm has offices in Chicago, New York and San Francisco.