One-stop loans dominate Golub BDC’s originations

The business development company originated $113.6m over the fourth calendar quarter.

Golub Capital BDC has reported $122.7 million in new originations and investments during the fourth quarter of 2016, between its own efforts and its partnership with RGA Reinsurance Company during that period.

Of that, Golub originated $113.6 million. Some 75 percent of that total was made up of one-stop loans, with 24 percent in senior secured loans and 1 percent subordinated debt and equity. Nearly all, or $112.2 million, were funded at close. The remaining $9.1 million came from Senior Loan Fund, which Golub and RGA co-manage.

Originations from Q3 2016 – the firm’s year-end fiscal quarter – stood at $179.4 million. Some 85 percent of these were one-stop loans, while 14 percent were senior secured loans and 1 percent was equity securities. No number was totaled for the Senior Loan Fund.

Those originations and investments mark a drop from the $165.4 million both entities reported in Q4 2015, when the BDC itself invested a total of $149.9 million. The breakdowns were similar: 76 percent of originations were one-stop loans, 23 percent were senior secured loans and 1 percent were equity. The Senior Loan Fund put $15.5 million to work. 

As of 30 September, the end of Golub’s fiscal year, the firm’s net asset value per share stood at $15.96, although the firm’s shares traded above that figure even when its share price hit a quarter low of $18.18. During that quarter, net investment income totaled $5.78 million, up from $2.86 million during the same period the previous year.