Goldman Sachs BDC(GSBD) - 2023 Q4 - Annual Results

Goldman Sachs BDC, Inc. Q4 2023 Financial Results Quarterly Highlights & Financial Summary The company reported Q4 net investment income of $0.56 per share, a slight NAV increase, and an improved net debt-to-equity ratio Selected Financial Highlights (as of Q4 2023 vs Q3 2023) | (in $ millions, except per share data) | As of December 31, 2023 | As of September 30, 2023 | | :--- | :--- | :--- | | Investment portfolio, at fair value | $3,414.3 | $3,438.7 | | Total debt outstanding | $1,832.2 | $1,884.5 | | Net assets | $1,601.8 | $1,600.6 | | Net asset value per share | $14.62 | $14.61 | | Ending net debt to equity | 1.11x | 1.13x | Quarterly Operating Results (Q4 2023 vs Q3 2023) | (in $ millions, except per share data) | Three Months Ended December 31, 2023 | Three Months Ended September 30, 2023 | | :--- | :--- | :--- | | Total investment income | $115.4 | $120.1 | | Net investment income after taxes | $61.8 | $72.9 | | Adjusted net investment income after taxes | $60.7 | $69.7 | | Net investment income per share | $0.56 | $0.67 | | Adjusted net investment income per share | $0.55 | $0.64 | - The Board of Directors declared a regular first quarter 2024 dividend of $0.45 per share, payable on April 26, 2024, to shareholders of record as of March 28, 2024[4][18] - Net asset value (NAV) per share increased by 0.07% to $14.62 in Q4 2023 from $14.61 in Q3 2023[4] Investment Portfolio Analysis The $3.41 billion portfolio is concentrated in senior secured debt, with a 13.8% weighted average yield and a slight increase in non-accrual investments Investment Activity Q4 saw $166.2 million in new commitments and $224.0 million in sales and repayments, resulting in a net portfolio decrease Investment Activity for Q4 2023 ($ Millions) | Investment Type | New Investment Commitments | % of Total | Sales and Repayments | % of Total | | :--- | :--- | :--- | :--- | :--- | | 1st Lien/Senior Secured Debt | $136.5 | 82.1% | $179.8 | 80.3% | | 1st Lien/Last-Out Unitranche | $29.7 | 17.9% | $0.1 | — | | 2nd Lien/Senior Secured Debt | — | — | $36.9 | 16.5% | | Preferred Stock | — | — | $7.1 | 3.2% | | Common Stock | — | — | $0.1 | — | | Total | $166.2 | 100.0% | $224.0 | 100.0% | - Net funded portfolio change for the quarter was a decrease of $34.0 million, resulting from $190.0 million in total fundings and $224.0 million in sales and repayments[4] - New investment commitments were made to fourteen new and four existing portfolio companies, while sales and repayments were primarily driven by the full exit of seven portfolio companies[7] Portfolio Composition and Quality The portfolio remains concentrated in senior secured debt with a 13.8% yield, while non-accrual investments rose slightly to 2.3% of fair value Portfolio Composition by Investment Type (as of Dec 31, 2023) | Investment Type | $ Millions (Fair Value) | % of Total | | :--- | :--- | :--- | | 1st Lien/Senior Secured Debt | $3,107.5 | 91.1% | | 1st Lien/Last-Out Unitranche | $144.7 | 4.2% | | 2nd Lien/Senior Secured Debt | $66.5 | 1.9% | | Unsecured Debt | $27.3 | 0.8% | | Preferred Stock | $37.3 | 1.1% | | Common Stock | $30.7 | 0.9% | | Total | $3,414.3 | 100.0% | Selected Portfolio Metrics | | As of Dec 31, 2023 | As of Sep 30, 2023 | | :--- | :--- | :--- | | Number of portfolio companies | 144 | 137 | | W.A. yield on debt investments (fair value) | 13.8% | 13.3% | | W.A. leverage (net debt/EBITDA) | 6.1x | 5.9x | | W.A. interest coverage | 1.5x | 1.5x | | Median EBITDA | $53.98 million | $50.22 million | - As of December 31, 2023, non-accrual investments were 2.3% of the portfolio at fair value and 3.8% at amortized cost[4][9] - The investment portfolio is comprised of 97.2% senior secured debt, which includes 95.3% in first lien investments[4] Liquidity and Capital Resources The company maintained significant liquidity with $1.83 billion in total debt and an improved net debt-to-equity ratio of 1.11x - Total principal debt outstanding was $1,832.2 million, composed of $972.2 million from the Revolving Credit Facility and $860.0 million in unsecured notes[10] - As of December 31, 2023, the company had $724.1 million of availability under its Revolving Credit Facility and $52.4 million in cash[10] - The net debt-to-equity leverage ratio decreased to 1.11x as of December 31, 2023, compared to 1.13x at the end of the previous quarter[4][10] - The combined weighted average interest rate on debt outstanding was 5.45% for Q4 2023[10] Consolidated Financial Statements Net assets grew to $1.60 billion, driven by a significant increase in total investment income and net assets from operations for FY2023 Consolidated Statements of Assets and Liabilities Total net assets increased to $1.60 billion year-over-year, as a significant decrease in liabilities offset a slight decline in total assets Consolidated Balance Sheet Summary (in thousands) | | December 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total investments, at fair value | $3,414,329 | $3,506,216 | | Total assets | $3,522,819 | $3,591,311 | | Debt (net of issuance costs) | $1,826,794 | $2,012,660 | | Total liabilities | $1,920,994 | $2,088,917 | | Total net assets | $1,601,825 | $1,502,394 | | Net asset value per share | $14.62 | $14.61 | Consolidated Statements of Operations FY2023 total investment income grew 27% to $454.9 million, driving a substantial rebound in net increase in net assets from operations Consolidated Income Statement Summary (in thousands) | For the Years Ended December 31, | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Total investment income | $454,914 | $357,452 | $346,980 | | Net expenses | $202,831 | $124,428 | $108,322 | | Net investment income after taxes | $247,241 | $228,571 | $237,375 | | Net realized and unrealized gains (losses) | $(50,732) | $(173,329) | $(44,592) | | Net increase in net assets from operations | $195,874 | $55,003 | $192,427 | | Basic and diluted earnings (loss) per share | $1.81 | $0.54 | $1.89 | Corporate Information and Conference Call The company, a BDC focused on U.S. middle-market lending, will host its Q4 2023 earnings call on February 29, 2024 - GSBD is a business development company managed by Goldman Sachs Asset Management, L.P., focusing on generating current income and capital appreciation by investing in U.S. middle-market companies[22] - The company's primary investment strategy involves direct originations of secured debt, including first lien, first lien/last-out unitranche, and second lien debt[22] - An earnings conference call is scheduled for Thursday, February 29, 2024, at 9:00 am Eastern Time to discuss the financial results[11]