Goldman Sachs BDC(GSBD) - 2024 Q3 - Quarterly Report

Financial Performance - The company originated approximately $8.51 billion in aggregate principal amount of debt and equity investments from its formation in 2012 through September 30, 2024[166]. - As of September 30, 2024, the total investments amounted to$3,640.33 million, with a fair value of $3,442.13 million[177]. - The company primarily generates revenue through interest income from investments, with additional income from various fees and capital gains[171]. - Total investment income for the three months ended September 30, 2024, was$110.41 million, compared to $120.05 million for the same period in 2023, representing a decrease of 6.8$68.18 million, down from $72.95 million in the prior year, a decline of 6.5$330.57 million, slightly down from $339.54 million in the previous year[193]. - The company declared a quarterly distribution of$0.45 per share payable on January 27, 2025, to holders of record as of December 31, 2024[223]. Investment Portfolio - The portfolio includes $3,273.04 million in first lien/senior secured debt, with a fair value of$3,153.30 million as of September 30, 2024[177]. - The number of portfolio companies increased to 167 as of September 30, 2024, from 144 as of December 31, 2023[180]. - The median EBITDA for portfolio companies was $62.49 million as of September 30, 2024, up from$53.98 million as of December 31, 2023[180]. - Performing investments accounted for 95.5% of total investments as of September 30, 2024, down from 96.2% as of December 31, 2023[185]. - The percentage of investments graded 3 or 4 (indicating higher risk) was 9.5% as of September 30, 2024, compared to 10.4% as of December 31, 2023[184]. - The company invests primarily in U.S. middle-market companies, defined as those with annual EBITDA between $5 million and$200 million[166]. Debt and Financing - The company is permitted to borrow amounts such that its asset coverage ratio is at least 150% after borrowing, subject to Investment Company Act limitations[176]. - As of September 30, 2024, the asset coverage ratio based on the aggregate amount outstanding of senior securities was 183%, indicating a strong leverage position[203]. - The Revolving Credit Facility has an aggregate committed borrowing amount of $1,695 million, with an uncommitted accordion feature allowing an increase to$2,542.50 million under certain conditions[210]. - As of September 30, 2024, the company had outstanding borrowings of $524.67 million in USD, €0 million in Euros, £30.95 million in GBP, and CAD 83.52 million in Canadian Dollars[209]. - The company closed an offering of$360 million aggregate principal amount of 3.75% unsecured notes due 2025, maturing on February 10, 2025[213]. - The company issued $500 million aggregate principal amount of 2.875$400 million aggregate principal amount of 6.375% unsecured notes due 2027, maturing on March 11, 2027[215]. Risk Management - The company may originate "covenant-lite" loans, which have fewer financial maintenance covenants, potentially increasing risk in case of borrower default[166]. - The company regularly evaluates unfunded commitments using a proprietary risk management framework to plan capital resources and ongoing liquidity[203]. - Approximately 99.4% of the company's performing debt investments bore interest at a floating rate as of September 30, 2024[225]. - A 300 basis point increase in interest rates would result in a net income increase of $61.52 million, while a 300 basis point decrease would lead to a net income decrease of$61.52 million[226]. Management and Fees - The management fee and incentive fee compensate the investment adviser for identifying, evaluating, and monitoring investments[173]. - Management fees remained relatively stable at $8.85 million for the three months ended September 30, 2024, compared to$8.87 million for the same period in 2023[194]. Changes in Investments - The net increase in portfolio for the three months ended September 30, 2024, was $47.77 million, compared to a decrease of$88.96 million in the same period last year[188]. - The total new investment commitment amount in new portfolio companies was $157.34 million, significantly up from$49.12 million in the prior year, an increase of 219.5%[188]. - The total new investment commitment amount in existing portfolio companies was $219.48 million, up from$119.28 million, reflecting an increase of 84.0%[188]. - The weighted average yield on new investment commitments was 9.9% for the three months ended September 30, 2024, down from 11.6% in the same period last year[188]. - The number of new portfolio companies with new investment commitments increased to 15 from 8 in the prior year, indicating a growth of 87.5%[188]. Unrealized Gains and Losses - Net realized and unrealized gains (losses) for the three months ended September 30, 2024, were $(30.87) million, compared to$(21.29) million in the same period last year[191]. - The net change in unrealized appreciation on investments was $56.06 million for the three months ended September 30, 2024, compared to a depreciation of$19.90 million for the same period in 2023[197]. - Unrealized depreciation for the nine months ended September 30, 2024, was $121.01 million, while unrealized appreciation was$84.49 million[197]. - The restructuring of investments in Pluralsight, Inc. and the sale of Zodiac Intermediate, LLC contributed significantly to the net change in unrealized appreciation for the three months ended September 30, 2024[200]. - The company experienced a significant realized loss of $43.25 million from the restructuring of investments in Pluralsight, Inc. during the nine months ended September 30, 2024[195].