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 - 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]

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 companies, including our and their ability to achieve our respective objectives due ...

分组1 - Golub Capital BDC reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.43 per share, and down from $0.50 per share a year ago, representing an earnings surprise of -9.30% [1] - The company posted revenues of $220.7 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.52%, and an increase from year-ago revenues of $164.77 million [2] - Over the last four quarters, Golub Capital BDC has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] 分组2 - The stock has gained about 3.8% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the coming quarter is $0.43 on revenues of $225.02 million, and for the current fiscal year, it is $1.69 on revenues of $886.61 million [7] - The Financial - SBIC & Commercial Industry, to which Golub Capital BDC belongs, is currently in the top 14% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Portfolio Performance - As of December 31, 2024, the total fair value of the company's portfolio was $8,685.2 million, an increase from $8,235.4 million as of September 30, 2024, representing a growth of approximately 5.5%[451] - The company's one stop loans accounted for 86.8% of total investments at fair value as of December 31, 2024, up from 86.3% as of September 30, 2024[451] - The company had debt and equity investments in 386 portfolio companies as of December 31, 2024, an increase from 381 companies as of September 30, 2024[453] - Recurring revenue loans within the one stop loans amounted to $1,104.2 million as of December 31, 2024, up from $1,021.3 million as of September 30, 2024[452] - Total investment income for the three months ended December 31, 2024, was $220.7 million, a decrease of $3.7 million from the previous quarter and an increase of $55.9 million compared to the same period last year[481] - Net investment income after taxes for the three months ended December 31, 2024, was $96.6 million, down from $119.6 million in the previous quarter and up from $83.5 million year-over-year[479] - Average earning debt investments at fair value increased to $7.73 billion as of December 31, 2024, up by $347.2 million from the previous quarter and $2.59 billion from the same period last year[481] - The portfolio median EBITDA for portfolio companies was $62.7 million as of December 31, 2024, slightly down from $63.7 million as of September 30, 2024[541] Revenue and Income - The weighted average income yield for the three months ended December 31, 2024, was 10.9%, a decrease from 11.7% in the previous quarter[457] - The total return based on average net asset value for the three months ended December 31, 2024, was 11.0%, compared to 9.4% in the previous quarter[457] - Interest income for the three months ended December 31, 2024, was $200.0 million, a decrease of $0.9 million from the previous quarter and an increase of $55.5 million year-over-year[481] - Adjusted Net Investment Income for the three months ended December 31, 2024, was $102.3 million, down from $125.8 million in the previous quarter and up from $85.2 million year-over-year[479] Expenses and Fees - The company expects general and administrative expenses to remain stable or decline as a percentage of total assets during periods of asset growth[459] - Total net expenses for the three months ended December 31, 2024, were $124.6 million, an increase of $19.8 million from the previous quarter and $43.9 million from the same period last year[486] - The base management fee increased due to a rise in average adjusted gross assets, largely attributed to the acquisition of GBDC 3 in June 2024[490][491] - The Income Incentive Fee increased by $5.0 million from Q3 2024 to Q4 2024, but decreased by $3.2 million compared to Q4 2023 due to a reduction in the incentive fee rate from 20% to 15% after the GBDC 3 acquisition[493] Debt and Financing - The outstanding debt under the JPM Credit Facility increased to $1,191.3 million as of December 31, 2024, from $956.6 million as of September 30, 2024, reflecting an increase of about 24.5%[509] - The company had $806.2 million of remaining commitments and availability on the JPM Credit Facility as of December 31, 2024, compared to $865.9 million as of September 30, 2024, indicating a decrease of approximately 6.9%[509] - The total outstanding debt under the 2024 Debt Securitization was $1,364.0 million as of December 31, 2024[518] - The company had outstanding debt under the GBDC 3 2022 Debt Securitization of $232.5 million as of December 31, 2024, down from $236.8 million as of September 30, 2024, a decrease of approximately 1.4%[516] - The company had outstanding debt under the GBDC 3 2021 Debt Securitization of $298.0 million as of September 30, 2024[515] Mergers and Acquisitions - The GBDC 3 Merger resulted in the issuance of 92,115,308 shares of common stock to former stockholders of GBDC 3[471] - The company completed acquisitions of GCIC and GBDC 3, which were accounted for under the asset acquisition method, impacting the financial results[476] - The GBDC 3 Merger Agreement replaced the previous Investment Advisory Agreement, effective upon the merger[472] - The company completed the acquisition of GBDC 3 on June 3, 2024, enhancing its market position and operational scale[554] Cash Flow and Liquidity - Cash used in operating activities for Q4 2024 was $374.7 million, driven by $450.2 million from principal payments and sales of portfolio investments, and cash provided by financing activities was $238.1 million[506] - The company experienced a net decrease in cash and cash equivalents of $136.6 million for Q4 2024, compared to a net increase of $32.8 million in Q4 2023[506][507] - As of December 31, 2024, the company had cash and cash equivalents of $103.5 million, down from $123.1 million as of September 30, 2024, representing a decrease of approximately 16.0%[508] Valuation and Risk Management - The valuation designee is responsible for determining the fair value of investments not publicly traded, with a multi-step valuation process conducted quarterly[562] - The primary method for determining enterprise value uses a multiple analysis applied to the portfolio company's EBITDA[569] - The company monitors the risk profile of its investments and assigns internal performance ratings, with a focus on increasing monitoring intensity for investments rated 1, 2, or 3[542] - The company’s investments are subject to market risk, which is directly impacted by volatility and liquidity in the markets[572] - The company utilizes standard hedging instruments such as interest rate swaps, futures, options, and forward contracts to mitigate interest rate fluctuations[588] Future Outlook - The company expects to fund the growth of its investment portfolio through net proceeds from future securities offerings and borrowings, but cannot assure success in raising capital[534] - The company intends to make quarterly distributions to stockholders, although future distributions may be limited by operating results and asset coverage requirements[549] - The company expects that future loans could also have floating interest rates, typically based on floating SOFR or another base rate[585]

Financial Results Announcement - Golub Capital BDC, Inc. will release its financial results for the quarter ended December 31, 2024 on February 4, 2025 [4] - The press release announcing the financial results is attached as Exhibit 99.1 [4] - The report includes Exhibit 99.1, which is the press release dated January 6, 2025 [6] Regulatory and Filing Information - The information in Item 2.02 of the Current Report on Form 8-K is being furnished and shall not be deemed "filed" for any purpose of Section 18 of the Securities Exchange Act of 1934 [5] - The information in the Current Report on Form 8-K shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing [5] - The report also includes a Cover Page Interactive Data File embedded within the Inline XBRL document [6] Report Details and Signatory - The report is signed by Christopher C. Ericson, Chief Financial Officer of Golub Capital BDC, Inc. [10] - The report is dated January 6, 2025 [10]

Core Insights - Dividends are highlighted as a significant form of passive income, requiring no physical labor or specific time commitment [1] - The article emphasizes the importance of a diversified investment strategy that includes high-quality dividend stocks, Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1] Investment Strategy - A hybrid investment system is proposed, combining growth and income strategies to achieve total returns on par with the S&P 500 [1] - The focus is on utilizing various investment vehicles to maximize long-term growth potential and income generation [1]

Financial Data and Key Metrics Changes - Adjusted net investment income (NII) per share was $0.47 for the quarter, with an adjusted NII return on equity of 12.4% [8][14] - Adjusted net income per share for the quarter was $0.36, corresponding to an adjusted return on equity of 9.4% [8][14] - NAV per share decreased by $0.13 sequentially to $15.19, but is $0.17 higher than the previous year [26][33] Business Line Data and Key Metrics Changes - Gross originations were nearly $1 billion, up from the previous quarter, with net funds increasing by $368 million sequentially, representing a 5% net portfolio growth [17][34] - The weighted average rate on new investments decreased to 10.7% [35] - Nonaccruals increased slightly to 1.2% of total debt investments at fair value [45] Market Data and Key Metrics Changes - The underwriting environment has shifted to be more borrower-friendly across all credit markets, with increased spread compression and looser deal documentation [18][60] - Investments in rating Category 3 increased from 10.1% to 11.6% of the portfolio at fair value [22] Company Strategy and Development Direction - The company focuses on providing first lien senior secured loans to resilient middle-market companies backed by strong private equity sponsors [5] - The company aims to maintain a conservative approach by being selective in its origination strategy, focusing on core middle-market transactions [19][61] - The company has implemented a new supplemental variable distribution framework, leading to $0.29 per share of supplemental distributions [7] Management's Comments on Operating Environment and Future Outlook - Management anticipates increased credit stress, which they view positively as it may lead to more lender-friendly conditions [56][58] - The company expects a potential pickup in M&A activity in 2025 due to falling interest rates and less political uncertainty [62] - Management believes GBDC is well-positioned to outperform in the current environment due to its competitive advantages [64] Other Important Information - The company declared total distributions of $0.43 per share, including a regular quarterly distribution of $0.39 and a supplemental distribution of $0.04 [29] - The company has a strong liquidity position with approximately $1.4 billion available from unrestricted cash and undrawn commitments [54] Q&A Session Summary Question: What is the current state of documentation terms in the market? - Management indicated that documentation terms are currently more borrower-friendly, especially in the large market segment, but they maintain strong protections in the core middle market [70][74] Question: What are the expectations for M&A activity in 2025? - Management expressed caution but noted significant tailwinds for M&A activity, including lower rates and political stability, while acknowledging uncertainty remains [76][78] Question: How is the balance sheet optimization progressing? - Management stated that they are continuously optimizing the balance sheet and have made significant improvements post-merger, but will keep looking for opportunities [79][80] Question: Can you provide details on the recent originations and deployment strategy? - Management clarified that the $1 billion in originations was consistent across the Golub platform and emphasized the importance of relationships with repeat sponsors [82][87] Question: What is the impact of noncash interest expense related to swaps? - The noncash interest expense from swaps was approximately $0.02 per share [88]