GSBD deployment slowed in 1Q15

The newly listed BDC will pay a second quarter dividend of $0.45 per share.

Goldman Sachs BDC (GSBD) reported $0.46 in earnings per share for the first three months of 2015, up from $0.13 the previous quarter. The firm only invested $8.6 million as it hit capital limits but its joint-venture lending vehicle funded $69.4 million across seven new facilities for six companies, president and chief executive Brendan McGovern said during the firm’s first earnings call. 

New investment by GSBD totalled $257 million in the last three months of 2014.

The firm hit constraints on deployment ahead of its 6 million share offering at the end of March at $20 per share, McGovern added. 

GSBD also announced that its parent, investment bank Goldman Sachs would fund a $25 million share buy-back programme that will kick in should the share price fall below net asset value (NAV). The BDC has also approved its own $35 million buy-back programme that will kick in once the other $25 million programme is exhausted. 

McGovern added that the buy-backs are unnecessary at the moment but if the share price falls below NAV, both its parent and GSBD would find the buy-back programme accretive, as they believe in the book value they allocate to assets they originate. 

Senior Credit Fund (SCF) is a 50/50 joint-venture with Regents of the University of California to which both partners have committed investing up to $100 million each. One of GSBD’s investments this quarter was a further $3.2 million commitment to SCF. It lends across a mix of small club deals originated by GSBD as well as larger broadly syndicated leveraged loans.

The firm announced a second quarter dividend of $0.45 per share, up from $0.41 per share for the second quarter of 2014.