Golub Capital BDC shareholders sign off on merger

The combination with one of the firm's private BDCs, expected to close later in September, will create one of the largest publicly-traded BDCs.

Golub Capital BDC has won approval from its shareholders to merge its private business development company, Golub Capital Investment Corporation, with publicly-traded Golub Capital BDC. It is expected to close later this month.

Some 37.15 million shares cast votes, with 35.71 million, or 96 percent, voting in favour of the transaction, according to a Securities and Exchange Commission regulatory filing. There were 898,384 shares that voted against the merger, while 550,689 abstained.

The combination would be a boost to GBDC for multiple reasons, its chief executive David Golub said on the firm’s second-quarter earnings call. Among those are the transaction being accretive to the vehicle’s net asset value per share, improving share-trading liquidity and having better access to the securitisation markets, among others reasons.

“We believe the merger with GCIC is a win-win-win – good for GBDC stockholders, good for GCIC stockholders and good for GBDC,” Golub said in a statement. “We look forward to delivering the powerful advantages of the combined company to our current and future stockholders.”

GBDC, managed by Golub Capital, reported second calendar-quarter earnings last month, posting a net investment income of $0.32 a share, covering its third calendar-quarter dividend of the same amount. It made $157.05 million of investments for the three months ending 30 June, of which 84 percent were unitranche loans.