Goldman Sachs BDC(US:GSBD)2025-05-09 14:02Financial Data and Key Metrics Changes - The net investment income per share for the quarter was $0.42, and the net asset value (NAV) per share was $13.2, reflecting a decrease of 1.6% from the previous quarter's NAV, primarily due to a special dividend of $0.16 per share and net realized and unrealized losses [9][10] - The adjusted NAV per share, accounting for the special dividend, was $13.15, a non-GAAP measure introduced due to the dividend policy change [10] - The company ended the quarter with a net debt to equity ratio of 1.16 times, slightly down from 1.17 times at the end of the previous quarter, remaining below the targeted leverage ratio of 1.25 times [10][19] Business Line Data and Key Metrics Changes - New investment commitments during the quarter totaled approximately $87.8 million across 14 portfolio companies, with 100% of originations in first lien loans [12] - Sales and repayment activity amounted to $179.3 million, slightly down quarter over quarter, primarily due to the full repayment and refinancing of six portfolio companies [14] - The total investments in the portfolio were valued at $3.38 billion, with 96.1% in senior secured loans, including 90.7% in first lien loans [15] Market Data and Key Metrics Changes - The weighted average yield of debt and income-producing investments decreased to 10.8% from 11.2% in the previous quarter [16] - The current weighted average interest coverage of the companies in the investment portfolio increased to 1.9 times from 1.8 times in the previous quarter [17] - Investments on nonaccrual status decreased to 1.9% of the total investment portfolio at fair value from 2% as of the previous quarter [18] Company Strategy and Development Direction - The company is focused on maintaining exposure to the top of the capital stack, with a strategy that thrives in market volatility through unique opportunities within the Goldman Sachs ecosystem [12] - The company aims to deliver on a refreshed dividend structure while navigating a challenging macroeconomic environment [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment and the impact of tariffs on the portfolio, noting that only 3% of the portfolio companies have high exposure to tariffs [5][6] - There is optimism regarding the resilience of the portfolio and a backlog of transactions, despite the current lack of fervor in new M&A activity [22] Other Important Information - The board declared a base dividend of $0.32 per share and a special dividend of $0.16 per share, with a supplemental dividend of 5¢ per share payable on or about June 13, 2025 [9][10] - The company has approximately $720 million of borrowing capacity remaining under the revolving credit facility [19] Q&A Session Summary Question: Portfolio yield decline and repricing - Management noted that the portfolio yield declined by about 40 basis points quarter over quarter, attributing this to the exit of non-accrual positions with high coupons [25][29] Question: Impact of tariff exposure on fair value - Management clarified that the identification of companies with tariff exposure does not imply immediate impact, and performance deterioration would be reflected in future marks [30][31]