Financial Data and Key Metrics Changes - Adjusted net investment income (NII) per share was $0.39, corresponding to a return on equity of 10.4% [6] - Adjusted net income per share was $0.30, with a return on equity of 8%, including $0.09 per share of adjusted net realized and unrealized losses [6][25] - Net asset value (NAV) per share decreased by $0.09 to $15.04, primarily due to net unrealized and realized losses [21][25] Business Line Data and Key Metrics Changes - Gross originations for the quarter were $298.9 million, with $159.5 million funded at close, reflecting a conservative approach to new investments [14] - The investment income yield remained robust at 10.8%, despite a sequential decline of about 40 basis points [12][29] - The weighted average spread on new originations increased by 30 basis points compared to previous quarters [16][26] Market Data and Key Metrics Changes - The company experienced a significant deceleration in deal activity, contrary to expectations of a strong M&A environment [54] - Nonaccrual investments increased slightly to 70 basis points of total investments at fair value, with the number of nonaccrual investments remaining at nine [17][31] Company Strategy and Development Direction - The investment strategy focuses on providing first lien senior secured loans to resilient middle market companies backed by strong private equity sponsors [3][39] - The company aims to navigate uncertainty by selectively looking for new loans and focusing on early detection and intervention for underperforming borrowers [9][10] - The company believes its strategy positions it well against potential tariff impacts, as most borrowers are U.S.-centric businesses [39][40] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging macro environment marked by policy uncertainty and decreased consumer confidence [5][9] - The company remains cautious about new investment activity due to significant competition and unattractive deal conditions [54] - Management emphasized the importance of preparing for multiple scenarios and maintaining a resilient strategy [38][41] Other Important Information - Total distributions paid in the quarter were $0.39 per share, representing an annualized dividend yield of 10.3% [20] - The company has a strong liquidity position with approximately $1.2 billion available from unrestricted cash and undrawn commitments [36] Q&A Session Summary Question: How should we think about the base payout going forward? - Management feels confident about the current dividend level despite spread and base rate compression, citing potential near-term levers to enhance earnings [46][47][51] Question: Are repayments trending low, and what is the focus on defending names? - Management observed a significant deceleration in deal activity and noted that private equity firms are holding longer in hopes of a better selling environment [54][56] Question: Should we expect a hit next quarter from the identified tariff risk names? - Management believes the situation is manageable and is actively working with borrowers to assess potential impacts [58][60] Question: What is the outlook for smaller companies in the portfolio? - Management indicated a focus on a broad range of EBITDA levels, with a preference for the core middle market where competitive dynamics are favorable [64][66] Question: Is there any thematic underpinning to the nonaccruals this quarter? - Management stated that the increase in nonaccruals was not influenced by tariffs and reflects general credit stress in the market [70]

Financial Data and Key Metrics Changes - Adjusted net investment income (NII) per share was $0.39, corresponding to a return on equity of 10.4% [6] - Adjusted net income per share was $0.30, with a return on equity of 8%, including $0.09 per share of adjusted net realized and unrealized losses [6][20] - Net asset value (NAV) per share decreased by $0.09 to $15.04, primarily due to net unrealized and realized losses [20][24] - Debt to equity ratio remained stable at 1.16 times, with average net leverage at 1.17 times, within the targeted range [20][32] Business Line Data and Key Metrics Changes - Gross originations for the quarter were $298.9 million, with $159.5 million funded at close, reflecting a conservative approach to new investments [13] - The investment income yield was robust at 10.8%, despite a sequential decline of about 40 basis points [12][28] - The weighted average spread on new originations increased by 30 basis points compared to previous quarters [15][24] Market Data and Key Metrics Changes - The company experienced a challenging macro environment characterized by policy uncertainty and decreased consumer confidence [5][8] - The portfolio remains highly diversified, with 90% of investments in the highest performing internal rating categories [11][25] - Nonaccrual investments increased slightly to 70 basis points of total investments at fair value, with nine total nonaccrual investments [16][29] Company Strategy and Development Direction - The investment strategy focuses on providing first lien senior secured loans to resilient middle market companies backed by strong private equity sponsors [3][36] - The company aims to navigate uncertainty by selectively looking for new loans and focusing on early detection and intervention for underperforming borrowers [8][39] - The management emphasizes the importance of maintaining a resilient strategy and preparing for multiple economic scenarios [35][36] Management's Comments on Operating Environment and Future Outlook - Management noted that previous macroeconomic predictions have often proven incorrect, emphasizing the need for resilience and adaptability [34][35] - The company believes its portfolio is relatively insulated from direct impacts of tariffs and trade-related issues due to the nature of its borrowers [36][37] - Management is actively monitoring the portfolio for tariff-related risks and engaging with sponsors to mitigate potential vulnerabilities [38][39] Other Important Information - Total distributions paid in the quarter were $0.39 per share, representing an annualized dividend yield of 10.3% based on NAV [19] - The company has a strong liquidity position with approximately $1.2 billion available from unrestricted cash and undrawn commitments [32] Q&A Session Summary Question: How should we think about the base payout going forward? - Management acknowledged the challenges of spread and base rate compression but expressed confidence in potential near-term levers to support the dividend [42][44] Question: Are repayments trending low, and what is the focus on defending names? - Management noted a significant deceleration in deal activity and emphasized a cautious approach to new investments while defending existing credits [50][51] Question: What is the status of the portfolio at risk for tariffs? - Management identified a small portion of the portfolio with potential exposure to tariffs but believes the impact will be manageable [55][66] Question: How is refinancing activity affecting the portfolio? - Management observed a shift from a borrower-friendly to a lender-friendly market, reducing concerns about significant refinancing activity in the near term [68][69] Question: Is there any noticeable trend in lender scale during recent market volatility? - Management indicated that the current environment plays to their strengths, with sponsors showing a preference for working with established lenders [70]

GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED MARCH 31, 2025 Confidential | for discussion purposes only Disclaimer Some of the statements in this presentation constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation involve risks and uncertainties, including statements as to: our future operating results; our business prospects and the prospects of our portfolio companie ...

分组1 - Golub Capital BDC reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.41 per share, and down from $0.51 per share a year ago, representing an earnings surprise of -4.88% [1] - The company posted revenues of $213.89 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.43%, compared to year-ago revenues of $164.23 million [2] - Golub Capital BDC shares have declined approximately 5.5% since the beginning of the year, while the S&P 500 has decreased by 3.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $222.97 million, and for the current fiscal year, it is $1.60 on revenues of $890.04 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the bottom 34% of over 250 Zacks industries, indicating potential underperformance compared to the top 50% of ranked industries [8]

Portfolio Overview - As of March 31, 2025, the total portfolio at fair value was $8,621.2 million, an increase from $8,235.4 million as of September 30, 2024[457]. - The company had debt and equity investments in 393 portfolio companies as of March 31, 2025, an increase from 381 companies as of September 30, 2024[459]. - As of March 31, 2025, the company had investments in 393 portfolio companies with a total fair value of $8.6 billion, up from $8.2 billion for 381 companies as of September 30, 2024[548]. - The portfolio median EBITDA for portfolio companies was $65.4 million as of March 31, 2025, compared to $63.7 million as of September 30, 2024[553]. Investment Performance - The weighted average annualized income yield for the three months ended March 31, 2025, was 10.5%, down from 10.9% for the previous quarter[460]. - The weighted average investment income yield for the six months ended March 31, 2025, was 11.0%, compared to 12.7% for the same period in the previous year[460]. - The total return based on average net asset value for the six months ended March 31, 2025, was 9.5%, compared to 13.2% for the same period in the previous year[460]. - Interest income for the three months ended March 31, 2025, decreased by $11.9 million to $188.15 million compared to $200.035 million for the three months ended December 31, 2024[481]. - Total investment income decreased by $6.8 million to $213.892 million for the three months ended March 31, 2025, compared to $220.7 million for the previous quarter[488]. - Investment income increased by $105.6 million to $434.592 million for the six months ended March 31, 2025, compared to $329 million for the same period in 2024[488]. Debt and Financing - The company amended its JPM Credit Facility on April 4, 2025, extending the maturity date to April 4, 2030, and allowing total commitments to increase to up to $3.0 billion[476]. - As of March 31, 2025, the company had outstanding debt under the JPM Credit Facility of $1,110.1 million, with remaining commitments and availability of $887.4 million[520]. - The company had outstanding debt under the 2024 Debt Securitization of $1,364.0 million as of March 31, 2025[524]. - Average debt outstanding increased by $64.4 million from $4.770 billion in Q4 2024 to $4.834 billion in Q1 2025, and by $1.667 billion from $3.147 billion in Q1 2024 to $4.814 billion in Q1 2025[494]. - The effective annualized average interest rate decreased from 6.2% in Q4 2024 to 5.9% in Q1 2025, while it increased from 5.6% in Q1 2024 to 6.0% in Q1 2025[495]. Income and Expenses - General and administrative expenses are expected to remain stable or decline as a percentage of total assets during periods of asset growth[464]. - Interest and other debt financing expenses decreased by $9.7 million from $76.998 million in Q4 2024 to $67.432 million in Q1 2025, primarily due to lower interest rates and refinancing benefits[494]. - The base management fee increased by $0.1 million from $21.581 million in Q4 2024 to $21.714 million in Q1 2025, driven by an increase in average adjusted gross assets[497]. - The Income Incentive Fee increased by $0.2 million from $18.058 million in Q4 2024 to $18.247 million in Q1 2025, but decreased by $0.4 million from $36.754 million in Q1 2024 to $36.305 million in Q1 2025 due to a reduction in fee rates[500]. - Professional fees, administrative service fees, and general administrative expenses increased by $0.1 million from Q4 2024 to Q1 2025, and by $2.9 million from Q1 2024 to Q1 2025[503]. Shareholder Distributions - A quarterly distribution of $0.39 per share was declared on May 2, 2025, payable on June 27, 2025[477]. - The company intends to make quarterly distributions to stockholders, but there are no assurances regarding the level or consistency of these distributions[559]. - The company has made and intends to continue making requisite distributions to stockholders to relieve it from U.S. federal income taxes[587]. Risk Management - The company is subject to financial market risks, including valuation risk and changes in interest rates[592]. - The fair value of investments is subject to fluctuation due to the lack of readily available market prices, which may result in significant differences if liquidated[593]. - The company may hedge against interest rate fluctuations using instruments such as interest rate swaps, futures, and options[597]. - The analysis of interest rate sensitivity does not account for changes in credit market conditions or the composition of the asset portfolio[595]. Acquisitions and Growth Strategy - The company completed the acquisition of GBDC 3 on June 3, 2024, resulting in the issuance of 92,115,308 shares of common stock to former stockholders of GBDC 3[474]. - The company completed acquisitions of GCIC and GBDC 3, impacting the fair value of assets and liabilities assumed, with purchase premiums recognized as unrealized depreciation[482]. - The company targets a GAAP debt-to-equity ratio between 0.85x to 1.25x, with a net GAAP debt-to-equity ratio of 1.16x as of March 31, 2025[542]. - The company plans to fund the growth of its investment portfolio through net proceeds from future securities offerings and borrowings, but cannot assure successful capital raising efforts[546]. Valuation and Fair Value - The fair value of the company's debt investments as a percentage of the outstanding principal value was 98.4%, up from 97.8% as of September 30, 2024[552]. - The fair value of investments can differ significantly from values that would have been used had a readily available market value existed[581]. - Approximately 50% of the valuations of debt and equity investments without readily available market quotations are subject to review by an independent valuation firm[578]. - The primary method for determining enterprise value uses a multiple analysis applied to the portfolio company's EBITDA[579]. Non-Accrual Loans - The company had loans in eight portfolio companies on non-accrual status, with non-accrual investments as a percentage of total investments at cost and fair value being 1.2% and 0.7%, respectively[551]. - The total fair value of non-accrual loans was $59.9 million as of March 31, 2025, down from $93.2 million as of September 30, 2024[586].

Financial Results Announcement - Golub Capital BDC, Inc. will release its financial results for the quarter ended March 31, 2025, on May 5, 2025, after market close[4] - The press release regarding the financial results is attached as Exhibit 99.1[6] Company Information - The company is registered under the trading symbol GBDC on The Nasdaq Global Select Market[2]

Group 1 - The Cash Flow Kingdom Income Portfolio aims to achieve an overall yield in the range of 7% to 10% by combining various income streams for a steady payout [1] - Golub Capital BDC (GBDC) is highlighted as a high-quality business development company with a current regular dividend yield of 11% [1] - The portfolio's price may fluctuate, but the income stream remains consistent, indicating a focus on stability in income generation [1] Group 2 - The Cash Flow Club, where the author contributes, focuses on company cash flows and access to capital, providing features like a personal income portfolio targeting a yield of over 6% [1] - The community offers resources such as a "Best Opportunities" List and coverage of sectors including energy midstream, commercial mREITs, BDCs, and shipping [1]

Group 1 - Golub Capital BDC (NASDAQ: GBDC) operates a first lien-strategy and supports its dividend with net investment income, indicating a strong financial foundation [1] - The company has a strong balance sheet quality, which is a positive indicator for investors [1] - The recent merger with Golub Capital BDC 3 has enhanced the firm's operational capabilities and overall performance [1]

Group 1 - The dividend pay-out ratio of Golub Capital BDC increased to 123% in 4Q24 due to the payment of a special dividend to distribute excess portfolio income along with a variable dividend [1]

Financial Data and Key Metrics Changes - GBDC reported adjusted net investment income (NII) per share of $0.39, corresponding to a return on equity of 10.1% [6][7] - Adjusted net income per share was $0.42, which included $0.03 of adjusted net realized and unrealized gains [7][8] - NAV per share decreased by $0.06 to $15.13, primarily due to distributions exceeding earnings [21][33] Business Line Data and Key Metrics Changes - Gross originations increased to $1.2 billion, with net funds increasing by $450 million, representing a 5.5% growth quarter-over-quarter [15][34] - The weighted average rate on new investments was 9.4%, while repayments had a weighted average rate of 11.3% [34] - Non-accrual investments decreased to 0.5% of total investments at fair value, the lowest level since September 2019 [41] Market Data and Key Metrics Changes - The lending environment has become more borrower-friendly, particularly in the large market segment, leading to spread compression and looser deal documentation [16][49] - Investments rated 4 and 5 increased to nearly 90% of the portfolio at fair value, indicating improved credit quality [19] Company Strategy and Development Direction - GBDC's strategy focuses on providing first lien senior secured loans to resilient middle market companies backed by strong private equity sponsors [4] - The company aims to maintain a conservative approach, primarily focusing on the core middle market despite increased competition [17][85] - GBDC executed a series of debt funding-related transactions to drive down its weighted average cost of debt, enhancing profitability [23][24] Management's Comments on Operating Environment and Future Outlook - Management noted a strong U.S. economy with solid revenue and EBITDA growth, but also highlighted elevated credit stress across the market [52][55] - The company remains cautious about potential impacts from tariffs and foreign exchange movements, emphasizing the resilience of its portfolio [62][66] - Management expects to see increased transaction volume and deal activity through 2025, driven by private equity sponsors [54] Other Important Information - GBDC was upgraded by Moody's to a Baa2 rating with a stable outlook, enhancing its ability to issue low-cost unsecured debt [24][46] - The company ended the quarter with approximately $1.1 billion of liquidity from unrestricted cash and undrawn commitments [47] Q&A Session Summary Question: How will the portfolio respond to current economic changes? - Management indicated that the portfolio is relatively insulated from foreign exchange and tariff movements due to its focus on U.S. borrowers and service companies [62][66] Question: What is the expected loss rate in the direct lending asset class? - Management noted that while credit stress is evident in the broadly syndicated market, it is less pronounced in private credit, with a focus on the core middle market to mitigate risks [74][78] Question: How is GBDC responding to increased competition? - Management stated that GBDC is not changing its strategy in response to competition but is focused on building competitive advantages in the core middle market [85][86] Question: What are the potential cost savings from recent funding initiatives? - Management explained that the current weighted average cost of debt is expected to decrease significantly as the benefits from recent funding initiatives take full effect [94][95] Question: Will there be significant portfolio churn due to increased M&A activity? - Management anticipates that higher M&A activity will lead to both increased originations and repayments, making the period of higher portfolio turnover manageable [104][105]