Financial Performance - Net investment income per share remained stable at $0.27 for the quarter ended December 31, 2021, compared to the previous quarter[7, 17] - Adjusted net investment income per share increased slightly to $0.31 from $0.30 in the prior quarter[7, 17] - Net asset value (NAV) per share increased to $15.26 as of December 31, 2021, from $15.19 at the end of the prior quarter[7, 14, 17] - Total investments at fair value increased by approximately 5.1%, or $251.9 million, during the quarter ended December 31, 2021[19] - The company's IPO investors have achieved a 10.0% IRR on NAV since 2010[45] Portfolio Composition and Credit Quality - Non-accrual investments remained low, representing 1.2% of total debt investments at cost and 0.9% at fair value as of December 31, 2021[26] - Risk rated "3" investments decreased to 6.6% of the portfolio at fair value as of December 31, 2021, from 8.1% as of September 30, 2021[29] - The investment portfolio totaled $5.147 billion with 301 investments, averaging less than 0.3% of the portfolio[23] - The portfolio is heavily weighted towards first lien investments, comprising 82% of the portfolio[23] Liquidity and Debt Structure - Unrestricted cash and cash equivalents totaled $182.7 million as of December 31, 2021[47] - The company had approximately $809.4 million of remaining commitments and availability on its revolving credit facilities with Morgan Stanley and JPMorgan[47] - The company issued an additional $200.0 million of 2026 Unsecured Notes at a fixed interest rate of 2.500% and an additional $100.0 million of 2024 Unsecured Notes at a fixed interest rate of 3.375%[47]

Investment Performance - As of December 31, 2021, the total fair value of investments was $5,146.8 million, an increase from $4,894.9 million as of September 30, 2021[435] - One stop loans accounted for 82.3% of total investments at fair value as of December 31, 2021, up from 79.3% as of September 30, 2021[435] - The total return based on average net asset value for the three months ended December 31, 2021, was 9.7%, compared to 11.1% for the previous quarter[439] - The company had debt and equity investments in 301 portfolio companies as of December 31, 2021, an increase from 296 companies as of September 30, 2021[438] - Late stage lending loans included $657.0 million at fair value as of December 31, 2021, compared to $527.8 million as of September 30, 2021[437] - Average earning debt investments at fair value increased to $4,784,517,000, up by $387,548,000 (8.8%) from $4,396,969,000 for the previous quarter[463] - The portfolio median EBITDA for portfolio companies was $44.8 million as of December 31, 2021, up from $41.1 million as of September 30, 2021[518] - The total fair value of investments increased to $5.1 billion as of December 31, 2021, from $4.9 billion as of September 30, 2021[512] Income and Expenses - Interest income for the three months ended December 31, 2021, was $84,601,000, an increase of $6,353,000 (8.1%) from $78,248,000 for the previous quarter[463] - Total investment income for the three months ended December 31, 2021, was $86,567,000, up by $5,458,000 (6.7%) compared to $81,109,000 for the previous quarter[463] - Net investment income for the three months ended December 31, 2021, was $44,790,000, a decrease of $1,502,000 (3.2%) from $46,292,000 for the previous quarter[463] - Total expenses for the three months ended December 31, 2021, were $41.78 million, an increase of $6.96 million compared to the previous quarter[474] - Interest and other debt financing expenses increased by $2.8 million from the three months ended December 31, 2020, primarily due to an increase in average debt outstanding of $571.5 million[475] - The base management fee, net of waiver, increased to $17.50 million for the three months ended December 31, 2021, due to an increase in average adjusted gross assets[479] - The Income Incentive Fee increased by $2.7 million from the three months ended September 30, 2021, primarily due to an increase in Pre-Incentive Fee Net Investment Income[482] Cash and Debt Management - Cash used in operating activities for the three months ended December 31, 2021, was $181.7 million, driven by fundings of portfolio investments of $890.9 million[493] - As of December 31, 2021, the company had cash and cash equivalents of $180.2 million, an increase from $175.6 million as of September 30, 2021[495] - The company had outstanding debt under the JPM Credit Facility of $453.1 million as of December 31, 2021, down from $472.1 million as of September 30, 2021[497] - The company had $408.2 million in outstanding debt under the 2018 Debt Securitization as of December 31, 2021[499] - The company had outstanding commitments to fund investments totaling $308.2 million as of December 31, 2021, down from $340.7 million as of September 30, 2021[509] Valuation and Investment Strategy - The investment objective is to generate current income and capital appreciation primarily through one stop and senior secured loans to U.S. middle-market companies[429] - The board of directors is responsible for determining the fair value of investments not publicly traded, with a multi-step valuation process conducted quarterly[536] - Approximately 25% of valuations of debt and equity investments without readily available market quotations are subject to review by an independent valuation firm[542] - The primary method for determining enterprise value involves applying appropriate multiples to the portfolio company's EBITDA, which may include pro-forma adjustments[543] Market and Economic Conditions - The company continues to monitor the impacts of the COVID-19 pandemic on its portfolio companies and overall financial condition[452] - The transition from LIBOR to alternative reference rates is ongoing, with amendments made to credit agreements to incorporate SOFR as an alternative[459] - The company expects that a prolonged reduction in interest rates could decrease gross investment income and net investment income if not offset by an increase in the spread over LIBOR[558] - The company may incur a 4% excise tax on retained taxable income in excess of current year dividend distributions[553] Shareholder Returns and Distributions - The board of directors declared a quarterly distribution of $0.30 per share, payable on March 29, 2022[460] - The company has a share repurchase program allowing for the repurchase of up to $150.0 million of outstanding common stock, although no repurchases were made during the three months ended December 31, 2021[508] - The company has adopted an "opt out" dividend reinvestment plan, allowing stockholders to reinvest cash distributions into additional shares unless they opt out[527] Legal and Compliance - The company, along with GC Advisors and Golub Capital LLC, is not currently subject to any material legal proceedings[565] - As of December 31, 2021, the company's disclosure controls and procedures were deemed effective by management, providing reasonable assurance for SEC filing compliance[563] - There have been no material changes in internal controls over financial reporting during the reporting period[563]

Golub Capital BDC (NASDAQ:GBDC) Q4 2021 Earnings Conference Call November 30, 2021 1:00 PM ET Company Participants David Golub – CEO Gregory Robbins – Senior Managing Director Jon Simmons – Managing Director Chris Ericson – CFO Conference Call Participants Paul Johnson – KBW Robert Dodd – Raymond James Finian O’Shea – Wells Fargo David Miyazaki – Confluence Investment Operator Welcome to GBDC's September 30, 2021 Quarterly Earnings Conference Call. Before we begin, I'd like to take a moment to remind our li ...

| --- | --- | --- | --- | --- | |----------------------------------|-------|-------|-------|-------| | | | | | | | GOLUB CAPITAL BDC, INC. | | | | | | INVESTOR PRESENTATION | | | | | | QUARTER ENDED SEPTEMBER 30, 2021 | | | | | | | | | | | | | | | | | | | | | | | 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 risk ...

Part I [Business](index=8&type=section&id=Item%201.%20Business) Golub Capital BDC is an externally managed BDC and RIC primarily investing in one-stop and senior secured loans for U.S. middle-market companies, leveraging Golub Capital's **$40.0 billion** platform [General Overview](index=8&type=section&id=Item%201.%20Business%20-%20General%20Overview) - Golub Capital BDC is an externally managed, closed-end, non-diversified BDC and RIC, primarily investing in one-stop and senior secured loans of U.S. middle-market companies, often sponsored by private equity firms[16](index=16&type=chunk) - The company aims to generate current income and capital appreciation by leveraging Golub Capital's loan origination channels and disciplined underwriting, with Golub Capital managing over **$40.0 billion** as of September 30, 2021[18](index=18&type=chunk) - On September 16, 2019, the company acquired Golub Capital Investment Corporation (GCIC), issuing **71,779,964** common shares to former GCIC stockholders[21](index=21&type=chunk)[22](index=22&type=chunk) - On May 15, 2020, a transferable rights offering issued **33,451,902** common shares, raising approximately **$300.4 million** in net proceeds[23](index=23&type=chunk)[24](index=24&type=chunk) [Investment Strategy and Process](index=12&type=section&id=Item%201.%20Business%20-%20Investment%20Strategy%20and%20Process) - The investment process, comprising Origination, Underwriting, Execution, and Monitoring, emphasizes a disciplined, downside-focused approach leveraging Golub Capital's extensive network[45](index=45&type=chunk)[47](index=47&type=chunk)[50](index=50&type=chunk)[52](index=52&type=chunk) - Investments are internally rated on a **1-to-5** scale, with **5** indicating least risk and **1** most risk, for portfolio monitoring and valuation[53](index=53&type=chunk) Internal Performance Rating Distribution (at Fair Value) | Internal Performance Rating | September 30, 2021 | September 30, 2020 | | :--- | :--- | :--- | | 5 (Least Risk) | 10.2% | 6.1% | | 4 | 80.7% | 72.8% | | 3 | 8.1% | 19.7% | | 2 | 1.0% | 1.4% | | 1 (Most Risk) | 0.0% | 0.0% | - The company primarily structures investments as senior secured, one-stop, second lien, subordinated loans, and minority equity co-investments[60](index=60&type=chunk)[61](index=61&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[66](index=66&type=chunk) Top 10 Portfolio Industries as of September 30, 2021 | Industry | Investments at Fair Value (in thousands) | Percentage of Total Investments | | :--- | :--- | :--- | | Software | $1,084,864 | 22.2% | | Healthcare Providers and Services | $532,463 | 10.9% | | IT Services | $302,487 | 6.2% | | Specialty Retail | $292,446 | 6.0% | | Insurance | $234,529 | 4.8% | | Hotels, Restaurants and Leisure | $172,285 | 3.5% | | Healthcare Equipment and Supplies | $157,959 | 3.2% | | Health Care Technology | $150,565 | 3.1% | | Automobiles | $140,499 | 2.9% | | Diversified Consumer Services | $134,232 | 2.7% | [Management Agreements](index=21&type=section&id=Item%201.%20Business%20-%20Management%20Agreements) - The company pays GC Advisors a base management fee of **1.375%** annually of average adjusted gross assets (excluding cash and cash equivalents) and an incentive fee[85](index=85&type=chunk)[86](index=86&type=chunk) - The incentive fee includes income-based and capital gains-based components, both capped at **20%** of Cumulative Pre-Incentive Fee Net Income, with the income fee subject to a **2.0%** quarterly hurdle rate of net assets[88](index=88&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk) - The Administration Agreement requires the company to reimburse Golub Capital LLC for allocable overhead and expenses, including costs for the CFO, CCO, and their staffs[119](index=119&type=chunk)[120](index=120&type=chunk) [Regulation](index=31&type=section&id=Item%201.%20Business%20-%20Regulation) - As a BDC, the company must invest at least **70%** of its total assets in qualifying assets, primarily securities of eligible U.S. portfolio companies[127](index=127&type=chunk) - Following February 5, 2019 stockholder approval, the company is subject to a minimum asset coverage ratio of **150%**, allowing it to borrow up to **$2** for every **$1** of investor equity, an increase from the previous **200%** ratio[134](index=134&type=chunk) - The company's SBIC subsidiaries, SBIC IV, SBIC V, and SBIC VI, surrendered their licenses on November 4, 2020, May 4, 2021, and September 21, 2021, respectively, with all SBA-guaranteed debentures repaid[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - To maintain RIC status, the company must distribute at least **90%** of its investment company taxable income annually, avoiding corporate-level U.S. federal income taxes on distributed income[158](index=158&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business, investment, and securities risks, including interest rate sensitivity, market competition, LIBOR transition, adviser dependence, leverage, illiquidity, and market disruptions - Business and structural risks include dependence on GC Advisors, potential conflicts of interest, interest rate changes, LIBOR discontinuation, and BDC regulations[77](index=77&type=chunk) - Investment risks include economic recessions impairing portfolio companies, illiquidity of private debt, credit and default risk, and portfolio concentration[78](index=78&type=chunk) - Investor risks include shares trading at a discount to net asset value, distribution uncertainty, and unsecured notes subordination to secured debt[81](index=81&type=chunk) - The COVID-19 pandemic has caused significant market volatility and economic uncertainty, potentially adversely affecting the company's portfolio, operations, and financial results[414](index=414&type=chunk)[415](index=415&type=chunk) [Unresolved Staff Comments](index=87&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[438](index=438&type=chunk) [Properties](index=87&type=section&id=Item%202.%20Properties) The company does not own any real estate; its headquarters are provided by Golub Capital LLC under the Administration Agreement - The company does not own any material physical properties; its headquarters are provided by its Administrator, Golub Capital LLC[439](index=439&type=chunk) [Legal Proceedings](index=87&type=section&id=Item%203.%20Legal%20Proceedings) The company, its adviser, and administrator are not currently subject to any material legal proceedings - The company is not currently subject to any material legal proceedings[440](index=440&type=chunk) [Mine Safety Disclosures](index=87&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - None[441](index=441&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=88&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "GBDC", with fiscal year 2021 closing prices ranging from **$12.66** to **$16.10** and total distributions of **$1.16** per share Fiscal Year 2021 Stock Price and Distribution Summary | Quarter | NAV per Share | High Closing Price | Low Closing Price | Distributions Declared per Share | | :--- | :--- | :--- | :--- | :--- | | Q1 2021 | $14.60 | $14.15 | $12.66 | $0.29 | | Q2 2021 | $14.86 | $15.36 | $14.08 | $0.29 | | Q3 2021 | $15.06 | $16.10 | $14.72 | $0.29 | | Q4 2021 | $15.19 | $16.01 | $15.17 | $0.29 | - The company declared total distributions of **$1.16** per share for fiscal year 2021 and **$1.37** per share for fiscal year 2020[449](index=449&type=chunk) - On November 19, 2021, the board declared a quarterly distribution of **$0.30** per share, payable on December 30, 2021[449](index=449&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=92&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal year 2021 saw total investment income of **$307.1 million**, net investment income of **$167.7 million**, and a **$173.2 million** net gain on investments, with the portfolio valued at **$4.9 billion** and a **200.0%** asset coverage ratio [Overview](index=94&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20-%20Overview) Portfolio Composition by Investment Type (at Fair Value) | Investment Type | As of Sep 30, 2021 | As of Sep 30, 2020 | | :--- | :--- | :--- | | Senior secured | 16.0% | 15.1% | | One stop | 79.3% | 82.2% | | Second lien | 0.9% | 0.5% | | Subordinated debt | 0.0% | 0.0% | | Equity | 3.8% | 2.2% | | **Total** | **100.0%** | **100.0%** | Key Performance Indicators | Metric | Year ended Sep 30, 2021 | Year ended Sep 30, 2020 | | :--- | :--- | :--- | | Weighted average income yield | 7.4% | 7.6% | | Total return based on average net asset value | 13.7% | 2.5% | | Total return based on market value | 28.9% | (22.8)% | - The company continues to reverse unrealized depreciation from early 2020, as portfolio companies have generally performed better than expected post-COVID-19 pandemic onset[486](index=486&type=chunk) [Consolidated Results of Operations](index=99&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20-%20Consolidated%20Results%20of%20Operations) Consolidated Operating Results (in thousands) | Metric | Year ended Sep 30, 2021 | Year ended Sep 30, 2020 | | :--- | :--- | :--- | | Total investment income | $307,125 | $298,953 | | Total net expenses | $139,453 | $159,894 | | Net investment income | $167,672 | $139,059 | | Net gain (loss) on investment transactions | $173,151 | $(84,187) | | **Net increase in net assets** | **$340,280** | **$54,872** | - Investment income increased by **$8.2 million** year-over-year, primarily due to reduced GCIC acquisition premium amortization and higher fee and accretion income, partially offset by lower LIBOR rates[501](index=501&type=chunk) - Net expenses decreased by **$20.4 million**, mainly due to lower interest expense from reduced LIBOR rates and a **$10.6 million** decrease in the income incentive fee[507](index=507&type=chunk)[508](index=508&type=chunk)[511](index=511&type=chunk) - The company recorded a net gain on investments of **$173.2 million** in fiscal year 2021, a reversal from the **$84.2 million** net loss in fiscal year 2020, driven by **$165.2 million** in net unrealized appreciation[517](index=517&type=chunk)[519](index=519&type=chunk) [Liquidity and Capital Resources](index=104&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20-%20Liquidity%20and%20Capital%20Resources) - As of September 30, 2021, the company had **$2.6 billion** of debt outstanding, with a **200.0%** asset coverage ratio, exceeding the **150%** regulatory requirement, targeting a GAAP debt-to-equity ratio between **0.85x** and **1.25x**[541](index=541&type=chunk) - During fiscal 2021, the company issued **$400.0 million** of **2.500%** unsecured notes due 2026 and **$350.0 million** of **2.050%** unsecured notes due 2027, and entered a new **$475.0 million** JPM Credit Facility[529](index=529&type=chunk)[538](index=538&type=chunk)[539](index=539&type=chunk) - New investment commitments significantly increased to **$2.3 billion** in fiscal year 2021 from **$595.1 million** in fiscal year 2020, driven by increased merger and acquisition activity[547](index=547&type=chunk)[548](index=548&type=chunk) - As of September 30, 2021, non-accrual loans represented **1.3%** of the total debt portfolio at cost and **1.0%** at fair value, a decrease from **2.4%** and **1.7%** respectively, at fiscal year 2020 end[551](index=551&type=chunk)[552](index=552&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=116&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuations, with **90%** of its loan portfolio having interest rate floors averaging **0.99%**, and a **150** basis point rate increase estimated to yield an **$11.5 million** net increase in investment income - The company's primary market risk is interest rate fluctuations, affecting floating-rate assets and liabilities, with a weighted average LIBOR floor of **0.99%** on loans as of September 30, 2021[593](index=593&type=chunk) Annualized Impact of Hypothetical Interest Rate Changes (as of Sep 30, 2021) | Change in Interest Rates | Net Increase (Decrease) in Investment Income (in thousands) | | :--- | :--- | | Down 25 basis points | $2,558 | | Up 50 basis points | $(5,111) | | Up 100 basis points | $(4,006) | | Up 150 basis points | $11,531 | | Up 200 basis points | $27,151 | [Consolidated Financial Statements and Supplementary Data](index=117&type=section&id=Item%208.%20Consolidated%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements, including key figures as of September 30, 2021, such as total investments at fair value of **$4.9 billion**, total assets of **$5.2 billion**, total debt of **$2.6 billion**, and NAV per share of **$15.19** [Financial Statements](index=119&type=section&id=Item%208.%20Consolidated%20Financial%20Statements%20and%20Supplementary%20Data%20-%20Financial%20Statements) Consolidated Statement of Financial Condition Highlights (in thousands) | Metric | As of Sep 30, 2021 | As of Sep 30, 2020 | | :--- | :--- | :--- | | Total Investments, at fair value | $4,894,886 | $4,238,210 | | Total Assets | $5,164,915 | $4,444,284 | | Total Debt (less unamortized costs) | $2,551,378 | $2,017,802 | | Total Net Assets | $2,582,692 | $2,396,193 | | **Net Asset Value per share** | **$15.19** | **$14.33** | Consolidated Statement of Operations Highlights (in thousands) | Metric | Year ended Sep 30, 2021 | Year ended Sep 30, 2020 | | :--- | :--- | :--- | | Total investment income | $307,125 | $298,953 | | Net investment income | $167,672 | $139,059 | | Net gain (loss) on investment transactions | $173,151 | $(84,187) | | **Net increase in net assets** | **$340,280** | **$54,872** | [Notes to Consolidated Financial Statements](index=211&type=section&id=Item%208.%20Consolidated%20Financial%20Statements%20and%20Supplementary%20Data%20-%20Notes%20to%20Consolidated%20Financial%20Statements) - The company's investments are primarily Level 3 in the fair value hierarchy, with valuations based on significant unobservable inputs and management judgment, using market comparable company analysis and market interest rate yield analysis[967](index=967&type=chunk)[968](index=968&type=chunk) - As of September 30, 2021, the company had various debt facilities including the 2018 Debt Securitization (**$408.2 million**), GCIC 2018 Debt Securitization (**$544.2 million**), JPM Credit Facility (**$472.1 million**), 2024 Notes (**$400.0 million**), 2026 Notes (**$400.0 million**), and 2027 Notes (**$350.0 million**)[985](index=985&type=chunk)[992](index=992&type=chunk)[1027](index=1027&type=chunk)[1033](index=1033&type=chunk)[1037](index=1037&type=chunk)[1040](index=1040&type=chunk) - For fiscal year ended September 30, 2021, distributions of **$1.16** per share were characterized for tax purposes as **$1.13** from ordinary income and **$0.03** from long-term capital gains[1055](index=1055&type=chunk)[1075](index=1075&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=260&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[1083](index=1083&type=chunk) [Controls and Procedures](index=260&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal controls during the fourth fiscal quarter - Management concluded that as of September 30, 2021, the company's disclosure controls and procedures were effective[1084](index=1084&type=chunk) - No material changes in internal control over financial reporting were identified during the fourth fiscal quarter of 2021[1086](index=1086&type=chunk) [Other Information](index=260&type=section&id=Item%209B.%20Other%20Information) No other information was reported under this item - None[1087](index=1087&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=261&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's 2022 Annual Meeting of Stockholders Proxy Statement - Information is incorporated by reference from the company's 2022 Proxy Statement[1090](index=1090&type=chunk) [Executive Compensation](index=261&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's 2022 Annual Meeting of Stockholders Proxy Statement - Information is incorporated by reference from the company's 2022 Proxy Statement[1091](index=1091&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=261&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the company's 2022 Annual Meeting of Stockholders Proxy Statement - Information is incorporated by reference from the company's 2022 Proxy Statement[1092](index=1092&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=261&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's 2022 Annual Meeting of Stockholders Proxy Statement - Information is incorporated by reference from the company's 2022 Proxy Statement[1093](index=1093&type=chunk) [Principal Accountant Fees and Services](index=261&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's 2022 Annual Meeting of Stockholders Proxy Statement - Information is incorporated by reference from the company's 2022 Proxy Statement[1094](index=1094&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=262&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits filed as part of the annual report, including merger agreements, corporate governance documents, and required certifications - This section lists all financial statements, schedules, and exhibits filed with the Form 10-K[1097](index=1097&type=chunk)

Financial Data and Key Metrics Changes - For the quarter ended June 30, 2021, adjusted net investment income (NII) per share was $0.29, adjusted earnings per share (EPS) was $0.49, and ending net asset value (NAV) per share was $15.06 [9][22] - The median EBITDA growth from 2019 to 2021 exceeded 30%, indicating strong earnings growth across the portfolio [11] - The non-accrual rate remained low at 1% of investments at fair value, unchanged quarter-over-quarter and about 50% lower year-over-year [16][29] Business Line Data and Key Metrics Changes - New investment commitments totaled $614.7 million for the quarter, while total exits and sales of investments were $583.5 million, resulting in a 1% increase in total investments at fair value [24] - The portfolio mix by investment type remained consistent, with one-stop loans representing 80% of the portfolio [26] - The income yield decreased by 10 basis points to 7.4%, while the weighted average cost of debt decreased by 20 basis points to 2.8% [28] Market Data and Key Metrics Changes - The quarter ended June 30, 2021, set a new record for Golub Capital origination volume, surpassing the previous record by 30% [12] - The company reported strong middle market M&A activity, indicating a robust environment for new deals [42] Company Strategy and Development Direction - The investment strategy focuses on providing first lien, senior secured loans to healthy middle-market companies backed by strong private equity sponsors [6] - The company aims to increase the proportion of unsecured debt in its funding mix, which now represents about 50% of total funding [43] - GBDC is positioned to capture more attractive deals in the current market environment without compromising on credit quality [42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the future, citing concerns about COVID variants but also highlighting strong portfolio performance and ample liquidity [37][38] - The company anticipates continued growth in net investment income and portfolio size, which will support future dividend increases [73] Other Important Information - The company completed its third unsecured bond offering of $350 million, maturing in February 2027, achieving the lowest coupon ever for a BDC at 2.05% [19] - The company has a strong liquidity position with over $800 million available through cash and credit facilities [32] Q&A Session Summary Question: Market opportunity and competitiveness in larger transactions - Management noted that while there are more players in larger transactions, GBDC remains a market leader in mega one-stops and continues to focus on financing companies generating between $20 million and $50 million of EBITDA [46][47] Question: Thoughts on equity co-investment - Management indicated that the percentage of the portfolio in equity co-investments has remained consistent, and they expect to grow the portfolio while maintaining a stable debt-to-equity ratio [54] Question: Operating around the hurdle rate - Management acknowledged that the recent quarter was an anomaly due to high repayments but expects growth in the portfolio size to improve net investment income [56][57] Question: Software lending portfolio outlook - Management expressed confidence in their leadership in software lending, noting strong sponsor relationships and a robust pipeline of opportunities despite increased competition [58][59] Question: Transition from LIBOR to SOFR - Management is prepared for the transition and has dedicated resources to ensure readiness, viewing it as a significant but manageable task [66][67] Question: Impact of portfolio performance on repayments - Management confirmed that higher-performing loans (category 5) tend to be refinanced more quickly, contributing to elevated repayment rates, but attributed the recent high repayments primarily to a rapid pace of M&A activity [70][71] Question: Future dividend increases - Management stated that increasing net investment income and NAV per share are key to raising dividends, aiming for a long-term target of about an 8% annual rate of NAV per share [73]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ______________________________________________________________________________________________________ FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2021 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number 814-00794 Golub Capital BDC, In ...

Golub Capital BDC (NASDAQ:GBDC) Q1 2021 Results Conference Call May 11, 2021 3:00 PM ET Company Participants David Golub - Chief Executive Officer Ross Teune - Chief Financial Officer Gregory Robbins - Senior Managing Director and Co-Head of the Investor Partners Group Jonathan Simmons - Managing Director and Co-Head of Corporate Development Conference Call Participants Finian O'Shea - Wells Fargo Securities Ryan Lynch - Keefe, Bruyette, & Woods Robert Dodd - Raymond James & Associates Operator Welcome to G ...

| --- | --- | --- | --- | --- | |------------------------------|-------|-------|-------|-------| | | | | | | | GOLUB CAPITAL BDC, INC. | | | | | | INVESTOR PRESENTATION | | | | | | QUARTER ENDED MARCH 31, 2021 | | | | | | | | | | | | | | | | | 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, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ______________________________________________________________________________________________________ FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2021 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number 814-00794 Golub Capital BDC, I ...