10-Q 1 gbdcfy2019q110-q.htm 10-Q Document
______________________________________________________________________________________________________

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 December 31, 2018

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, Inc.
(Exact name of registrant as specified in its charter)
Delaware
 
27-2326940
(State or other jurisdiction of incorporation or organization)
 
 (I.R.S. Employer Identification No.)

666 Fifth Avenue, 18th Floor
New York, NY 10103
(Address of principal executive offices)

(212) 750-6060
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ   No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes o No   o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  þ
Accelerated filer o
Non-accelerated filer  o 
Smaller reporting company o
Emerging growth company o
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  o  No þ

As of February 6, 2019, the Registrant had 60,422,239 shares of common stock, $0.001 par value, outstanding.



Part I. Financial Information
  
Item 1.
Financial Statements
 
Consolidated Statements of Financial Condition as of December 31, 2018 (unaudited) and September 30, 2018
 
Consolidated Statements of Operations for the three months ended December 31, 2018 (unaudited) and 2017 (unaudited)
 
Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2018 (unaudited) and 2017 (unaudited)
 
Consolidated Statements of Cash Flows for the three months ended December 31, 2018 (unaudited) and 2017 (unaudited)
 
Consolidated Schedules of Investments as of December 31, 2018 (unaudited) and September 30, 2018
 
Notes to Consolidated Financial Statements (unaudited)
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
Item 4.
Controls and Procedures
Part II. Other Information
 
Item 1.
Legal Proceedings
Item 1A.
Risk Factors
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.
Defaults Upon Senior Securities
Item 4.
Mine Safety Disclosures
Item 5.
Other Information
Item 6.
Exhibits


2

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(In thousands, except share and per share data)

 
December 31, 2018
 
September 30, 2018
 
(unaudited)
 
 
Assets
  

 
  

Investments, at fair value
  

 
  

Non-controlled/non-affiliate company investments
$
1,842,071

 
$
1,704,473

Non-controlled affiliate company investments
7,493

 
7,284

Controlled affiliate company investments
68,915

 
71,084

Total investments at fair value (amortized cost of $1,915,841 and $1,780,652, respectively)
1,918,479

 
1,782,841

Cash and cash equivalents
12,706

 
5,878

Foreign currencies (cost of $296 and $159, respectively)
296

 
159

Restricted cash, cash equivalents and foreign currencies
40,703

 
39,668

Interest receivable
6,349

 
6,664

Other assets
1,274

 
342

Total Assets
$
1,979,807

 
$
1,835,552

Liabilities
  

 
  

Debt
$
971,814

 
$
845,683

Less unamortized debt issuance costs
3,796

 
2,934

Debt less unamortized debt issuance costs
968,018

 
842,749

Other short-term borrowings (proceeds of $21,719 and $0, respectively)
21,687

 

Interest payable
7,128

 
4,135

Management and incentive fees payable
15,494

 
17,671

Accounts payable and accrued expenses
2,456

 
2,069

Accrued trustee fees
70

 
74

Total Liabilities
1,014,853

 
866,698

Commitments and Contingencies (Note 7)
  

 
  

Net Assets
  

 
  

Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2018 and September 30, 2018

 

Common stock, par value $0.001 per share, 100,000,000 shares authorized, 60,422,239 and 60,165,454 shares issued and outstanding as of December 31, 2018 and September 30, 2018, respectively
60

 
60

Paid in capital in excess of par
953,681

 
949,547

Distributable earnings 
11,213

 
19,247

Total Net Assets
964,954

 
968,854

Total Liabilities and Total Net Assets
$
1,979,807

 
$
1,835,552

Number of common shares outstanding
60,422,239

 
60,165,454

Net asset value per common share
$
15.97

 
$
16.10




See Notes to Consolidated Financial Statements.
3





Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
(In thousands, except share and per share data)

 
Three months ended December 31,
  
2018
 
2017
Investment income
 
 
 
From non-controlled/non-affiliate company investments:
 
 
 
Interest income
$
38,677

 
$
33,192

Dividend income
39

 
597

Fee income
522

 
534

Total investment income from non-controlled/non-affiliate company investments
39,238

 
34,323

From non-controlled affiliate company investments:
 
 
 
Interest income
173

 
162

Total investment income from non-controlled affiliate company investments
173

 
162

From controlled affiliate company investments:
 
 
 
Dividend income

 
1,965

Total investment income from controlled affiliate company investments

 
1,965

Total investment income
39,411

 
36,450

Expenses
 
 
 
Interest and other debt financing expenses
9,784

 
7,714

Base management fee
6,439

 
5,930

Incentive fee
1,983

 
2,871

Professional fees
588

 
688

Administrative service fee
699

 
618

General and administrative expenses
101

 
118

Total expenses
19,594

 
17,939

Net investment income
19,817

 
18,511

Net gain (loss) on investments and foreign currency
 
 
 
Net realized gain (loss) on investments and foreign currency transactions:
 
 
 
Non-controlled/non-affiliate company investments
(1,948
)
 
481

Foreign currency transactions
(30
)
 

Net realized gain (loss) on investments and foreign currency transactions
(1,978
)
 
481

Net change in unrealized appreciation (depreciation) on investments and foreign currency translation:
 
 
 
Non-controlled/non-affiliate company investments
261

 
988

Non-controlled affiliate company investments
82

 
559

Controlled affiliate company investments
106

 
776

Translation of assets and liabilities in foreign currencies
151

 

Net change in unrealized appreciation (depreciation) on investments and foreign currency translation
600

 
2,323

Net gain (loss) on investments and foreign currency
(1,378
)
 
2,804

Net increase in net assets resulting from operations
$
18,439

 
$
21,315

Per Common Share Data
 
 
 
Basic and diluted earnings per common share
$
0.31

 
$
0.36

Dividends and distributions declared per common share
$
0.44

 
$
0.40

Basic and diluted weighted average common shares outstanding
60,176,619

 
59,584,421



See Notes to Consolidated Financial Statements.
4





Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Changes in Net Assets (unaudited)
(In thousands, except share data)

 
Common Stock
 
Paid in Capital in Excess of Par
 
Distributable Earnings (1)
 
Total Net Assets
 
Shares
 
Par Amount
 
 
 
Balance at September 30, 2017
59,577,293

 
$
60

 
$
939,307

 
$
18,579

 
$
957,946

Net increase in net assets resulting from operations:
 
 
 
 
 
 
 
 
 
Net investment income

 

 

 
18,511

 
18,511

Net realized gain (loss) on investments and foreign currency transactions

 

 

 
481

 
481

Net change in unrealized appreciation (depreciation) on investments and foreign currency translation

 

 

 
2,323

 
2,323

Distributions to stockholders:
  

 
  

 
  

 
 
 
 
Stock issued in connection with dividend reinvestment plan
163,955

 

 
2,872

 

 
2,872

Distributions from distributable earnings (2)

 

 

 
(23,831
)
 
(23,831
)
Total increase (decrease) for the period ended December 31, 2017
163,955

 

 
2,872

 
(2,516
)
 
356

Balance at December 31, 2017
59,741,248

 
$
60

 
$
942,179


$
16,063

 
$
958,302

Balance at September 30, 2018
60,165,454

 
$
60

 
$
949,547

 
$
19,247

 
$
968,854

Net increase in net assets resulting from operations:
 
 
 
 
 
 
 
 


Net investment income

 

 

 
19,817

 
19,817

Net realized gain (loss) on investments and foreign currency transactions

 

 

 
(1,978
)
 
(1,978
)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation

 

 

 
600

 
600

Distributions to stockholders:
 
 
 
 
 
 
  

 
 
Stock issued in connection with dividend reinvestment plan
256,785

 

 
4,134

 

 
4,134

Distributions from distributable earnings

 

 

 
(26,473
)
 
(26,473
)
Total increase (decrease) for the period ended December 31, 2018
256,785

 

 
4,134

 
(8,034
)
 
(3,900
)
Balance at December 31, 2018
60,422,239

 
$
60

 
$
953,681

 
$
11,213

 
$
964,954


(1) The following table provides the reconciliation of the components of distributable earnings to conform to the current period presentation for the period ended December 31, 2017:
 
Total increase (decrease) for the period ended December 31, 2017
 
Undistributed Net Investment Income
Net Unrealized Appreciation (Depreciation) on Investments
Net Realized Gain (Loss) on Investments
Distributable Earnings
Net investment income
$
18,511

$

$

$
18,511

Net realized gain (loss) on investments and foreign currency transactions


481

481

Net change in unrealized gain (loss) on investments and foreign currency translation

2,323


2,323

Net increase in net assets from operations
$
18,511

$
2,323

$
481

$
21,315


(2) The following table provides the reconciliation of the components of distributions from distributable earnings to conform to the current period presentation for the period ended December 31, 2017:
 
Total increase (decrease) for the period ended December 31, 2017
Distributions to stockholders:
 
Distributions from net investment income
$
(20,852
)
Distributions from realized gain
(2,979
)
Distributions from distributable earnings
$
(23,831
)


See Notes to Consolidated Financial Statements.
5





Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(In thousands)

 
Three Months Ended December 31,
  
2018
 
2017
Cash flows from operating activities
  

 
  

Net increase in net assets resulting from operations
$
18,439

 
$
21,315

Adjustments to reconcile net increase in net assets resulting from operations
to net cash (used in) provided by operating activities
 
 
 
Amortization of deferred debt issuance costs
669

 
794

Accretion of discounts and amortization of premiums
(1,953
)
 
(2,709
)
Net realized (gain) loss on investments
1,948

 
(481
)
Net change in unrealized (appreciation) depreciation on investments
(449
)
 
(2,323
)
Net change in unrealized (appreciation) depreciation on translation of assets and liabilities in foreign currencies
(151
)
 

Proceeds from (fundings of) revolving loans, net
(2,531
)
 
3,498

Fundings of investments
(195,731
)
 
(137,941
)
Proceeds from principal payments and sales of portfolio investments
63,621

 
101,876

PIK interest
(543
)
 
(277
)
Changes in operating assets and liabilities:
 
 
 
Interest receivable
315

 
(265
)
Other assets
(932
)
 
43

Interest payable
2,993

 
2,332

Management and incentive fees payable
(2,177
)
 
2,291

Payable for investments purchased

 
550

Accounts payable and accrued expenses
387

 
(339
)
Accrued trustee fees
(4
)
 
2

Net cash (used in) provided by operating activities
(116,099
)
 
(11,634
)
Cash flows from financing activities
  

 
  

Borrowings on debt
782,122

 
98,600

Repayments of debt
(655,872
)
 
(51,400
)
Capitalized debt issuance costs
(1,531
)
 
(35
)
Proceeds from other short-term borrowings
21,719

 

Distributions paid
(22,339
)
 
(20,959
)
Net cash provided by (used in) financing activities
124,099

 
26,206

Net change in cash, cash equivalents, foreign currencies and restricted cash and cash equivalents
8,000

 
14,572

Cash, cash equivalents, foreign currencies and restricted cash and cash equivalents, beginning of period
45,705

 
62,558

Cash, cash equivalents, foreign currencies and restricted cash and cash equivalents, end of period
$
53,705

 
$
77,130

Supplemental disclosure of cash flow information:
  

 
  

Cash paid during the period for interest
$
(6,121
)
 
$
(4,587
)
Distributions declared during the period
(26,473
)
 
(23,831
)
Supplemental disclosure of noncash financing activity:
 
 
 
Stock issued in connection with dividend reinvestment plan
4,134

 
2,872




See Notes to Consolidated Financial Statements.
6





Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited) - (continued)
(In thousands)


The following table provides a reconciliation of cash, cash equivalents, foreign currencies and restricted cash, cash equivalents and foreign currencies reported within the Consolidated Statements of Financial Condition that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows:
 
As of December 31,
 
2018
 
2017
Cash and cash equivalents
$
12,706

 
$
5,750

Foreign currencies (cost of $296 and $0, respectively)
296

 

Restricted cash, cash equivalents and foreign currencies
40,703

 
71,380

Total cash, cash equivalents, restricted cash and cash equivalents and foreign currencies shown in the Consolidated Statements of Cash Flows
$
53,705

 
$
77,130

See Note 2. Significant Accounting Policies and Recent Accounting Updates for a description of restricted cash, cash equivalents and foreign currencies.



See Notes to Consolidated Financial Statements.
7





Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited)
December 31, 2018
(In thousands)


 
Investment Type
 
Spread
Above
Index(1)
 
Interest
Rate
(2)
 
Maturity
Date
 
Principal ($) /
Shares(3)
 
Amortized Cost
 
Percentage
of Net
Assets
 
Fair
Value (4)
Investments
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Non-controlled/non-affiliate company investments
 
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Debt investments
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Aerospace and Defense
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

ILC Dover, LP#
Senior loan
 
L + 4.75%
(c)(d) 
 
7.63%
 
12/2023
 
$
9,903

 
$
9,820

 
1.0

%
$
9,903

NTS Technical Systems^*#
One stop
 
L + 6.25%
(a) 
 
8.60%
 
06/2021
 
22,356

 
22,153

 
2.3

 
22,356

NTS Technical Systems#
One stop
 
L + 6.25%
(c) 
 
8.87%
 
06/2021
 
3,682

 
3,645

 
0.4

 
3,682

NTS Technical Systems(5)
One stop
 
L + 6.25%
 
 
N/A(6)
 
06/2021
 

 
(48
)
 

 

Tresys Technology Holdings, Inc.(7)
One stop
 
L + 6.75%
(a) 
 
9.27%
 
12/2019
 
3,899

 
3,845

 
0.1

 
780

Tresys Technology Holdings, Inc.(7)
One stop
 
L + 6.75%
(a) 
 
9.27%
 
12/2019
 
659

 
658

 
0.1

 
659

Tronair Parent, Inc.^
Senior loan
 
L + 4.75%
(a)(c) 
 
7.56%
 
09/2023
 
365

 
363

 

 
351

Tronair Parent, Inc.
Senior loan
 
L + 4.50%
(a)(c)(f) 
 
7.28%
 
09/2021
 
80

 
79

 

 
77

Whitcraft LLC^*
One stop
 
L + 6.25%
(c) 
 
9.05%
 
04/2023
 
12,407

 
12,274

 
1.3

 
12,407

Whitcraft LLC^
One stop
 
L + 6.25%
(c) 
 
9.05%
 
04/2023
 
194

 
191

 

 
194

Whitcraft LLC(5)
One stop
 
L + 6.25%
 
 
N/A(6)
 
04/2023
 

 
(1
)
 

 

 
 
 
 
 
 
 
 
 
 
53,545

 
52,979

 
5.2

 
50,409

Automobile
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Dent Wizard International Corporation#
Senior loan
 
L + 4.00%
(a) 
 
6.51%
 
04/2020
 
4,466

 
4,454

 
0.5

 
4,466

Grease Monkey International, LLC^*
Senior loan
 
L + 5.00%
(a) 
 
7.52%
 
11/2022
 
4,851

 
4,804

 
0.5

 
4,851

Grease Monkey International, LLC
Senior loan
 
L + 5.00%
(a) 
 
7.52%
 
11/2022
 
149

 
147

 

 
149

Grease Monkey International, LLC
Senior loan
 
L + 5.00%
(a) 
 
7.52%
 
11/2022
 
105

 
104

 

 
105

Grease Monkey International, LLC
Senior loan
 
L + 5.00%
(a) 
 
7.52%
 
11/2022
 
76

 
75

 

 
76

Grease Monkey International, LLC
Senior loan
 
L + 5.00%
(a)(c) 
 
7.52%
 
11/2022
 
49

 
48

 

 
49

Grease Monkey International, LLC
Senior loan
 
L + 5.00%
(c) 
 
7.47%
 
11/2022
 
12

 
11

 

 
12

Power Stop, LLC#
Senior loan
 
L + 4.75%
(c) 
 
7.55%
 
10/2025
 
1,355

 
1,349

 
0.2

 
1,349

Quick Quack Car Wash Holdings, LLC*
One stop
 
L + 6.50%
(a) 
 
9.02%
 
04/2023
 
8,729

 
8,634

 
0.9

 
8,729

Quick Quack Car Wash Holdings, LLC*
One stop
 
L + 6.50%
(a)(c) 
 
8.98%
 
04/2023
 
150

 
148

 

 
150

Quick Quack Car Wash Holdings, LLC*
One stop
 
L + 6.50%
(a) 
 
9.02%
 
04/2023
 
100

 
99

 

 
100

Quick Quack Car Wash Holdings, LLC
One stop
 
L + 6.50%
(a) 
 
8.98%
 
04/2023
 
40

 
39

 

 
40

Quick Quack Car Wash Holdings, LLC(5)
One stop
 
L + 6.50%
 
 
N/A(6)
 
04/2023
 

 
(3
)
 

 

  
 
 
 
 
 
 
 
 
 
20,082

 
19,909

 
2.1

 
20,076

Beverage, Food and Tobacco
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Abita Brewing Co., L.L.C.
One stop
 
L + 5.75%
(a) 
 
8.27%
 
04/2021
 
6,998

 
6,933

 
0.7

 
6,998

Abita Brewing Co., L.L.C.
One stop
 
L + 5.75%
 
 
N/A(6)
 
04/2021
 

 

 

 

C. J. Foods, Inc.^*
One stop
 
L + 6.25%
(c) 
 
9.05%
 
05/2020
 
8,560

 
8,515

 
0.9

 
8,560

C. J. Foods, Inc.^
One stop
 
L + 6.25%
(c) 
 
9.05%
 
05/2020
 
648

 
646

 
0.1

 
648

C. J. Foods, Inc.
One stop
 
L + 6.25%
(c) 
 
8.91%
 
05/2020
 
517

 
515

 
0.1

 
517

Cafe Rio Holding, Inc.^
One stop
 
L + 5.75%
(a) 
 
8.27%
 
09/2023
 
10,344

 
10,201

 
1.1

 
10,344

Cafe Rio Holding, Inc.*
One stop
 
L + 5.75%
(a) 
 
8.27%
 
09/2023
 
79

 
78

 

 
79

Cafe Rio Holding, Inc.
One stop
 
P + 4.75%
(f) 
 
10.25%
 
09/2023
 
65

 
63

 

 
65

Cafe Rio Holding, Inc.
One stop
 
L + 5.75%
(a) 
 
8.27%
 
09/2023
 
40

 
37

 

 
40

Fintech Midco, LLC*
One stop
 
L + 6.00%
(a) 
 
8.53%
 
08/2024
 
12,962

 
12,841

 
1.3

 
12,962

Fintech Midco, LLC(5)
One stop
 
L + 6.00%
 
 
N/A(6)
 
08/2024
 

 
(1
)
 

 

Fintech Midco, LLC(5)
One stop
 
L + 6.00%
 
 
N/A(6)
 
08/2024
 

 
(2
)
 

 

Flavor Producers, LLC#
Senior loan
 
L + 4.75%
(c) 
 
7.56%
 
12/2023
 
2,240

 
2,213

 
0.2

 
2,240

Flavor Producers, LLC(5)
Senior loan
 
L + 4.75%
 
 
N/A(6)
 
12/2022
 

 
(1
)
 

 

FWR Holding Corporation^
One stop
 
L + 5.75%
(a) 
 
8.26%
 
08/2023
 
5,246

 
5,185

 
0.6

 
5,246

FWR Holding Corporation
One stop
 
L + 5.75%
(a) 
 
8.26%
 
08/2023
 
102

 
101

 

 
102


See Notes to Consolidated Financial Statements.
8





Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
December 31, 2018
(In thousands)

 
Investment Type
 
Spread
Above
Index(1)
 
Interest
Rate
(2)
 
Maturity
Date
 
Principal ($) /
Shares(3)
 
Amortized Cost
 
Percentage
of Net
Assets
 
Fair
Value (4)
Beverage, Food and Tobacco - (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FWR Holding Corporation
One stop
 
L + 5.75%
(a) 
 
8.26%
 
08/2023
 
$
64

 
$
64

 

%
$
64

FWR Holding Corporation
One stop
 
P + 4.75%
(f) 
 
10.25%
 
08/2023
 
25

 
24

 

 
25

Global ID Corporation*
One stop
 
L + 6.50%
(c) 
 
9.30%
 
11/2021
 
5,131

 
5,094

 
0.5

 
5,131

Global ID Corporation*
One stop
 
L + 6.50%
(c) 
 
9.30%
 
11/2021
 
71

 
71

 

 
71

Global ID Corporation
One stop
 
L + 6.50%
(c) 
 
9.30%
 
11/2021
 
43

 
42

 

 
43

Global ID Corporation
One stop
 
L + 6.50%
 
 
N/A(6)
 
11/2021
 

 

 

 

Mendocino Farms, LLC(5)
One stop
 
L + 1.00%
 
 
N/A(6)
 
06/2023
 

 
(2
)
 

 

Mid-America Pet Food, L.L.C.^*
One stop
 
L + 6.00%
(c) 
 
8.80%
 
12/2021
 
10,726

 
10,644

 
1.1

 
10,726

Mid-America Pet Food, L.L.C.(5)
One stop
 
L + 6.00%
 
 
N/A(6)
 
12/2021
 

 
(1
)
 

 

NBC Intermediate, LLC^
Senior loan
 
L + 4.25%
(a) 
 
6.78%
 
09/2023
 
2,024

 
2,007

 
0.2

 
2,024

NBC Intermediate, LLC *
Senior loan
 
L + 4.25%
(a) 
 
6.78%
 
09/2023
 
1,094

 
1,084

 
0.1

 
1,094

NBC Intermediate, LLC
Senior loan
 
L + 4.25%
 
 
N/A(6)
 
09/2023
 

 

 

 

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.71%
 
05/2021
 
8,379

 
8,281

 
0.9

 
8,379

Purfoods, LLC
One stop
 
N/A
 
 
7.00% PIK
 
05/2026
 
116

 
116

 

 
116

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.78%
 
05/2021
 
55

 
55

 

 
55

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.80%
 
05/2021
 
39

 
39

 

 
39

Purfoods, LLC
One stop
 
L + 6.00%
(a) 
 
8.43%
 
05/2021
 
35

 
34

 

 
35

Purfoods, LLC*
One stop
 
L + 6.00%
(c) 
 
8.80%
 
05/2021
 
30

 
30

 

 
30

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.80%
 
05/2021
 
30

 
30

 

 
30

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.80%
 
05/2021
 
30

 
30

 

 
30

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.80%
 
05/2021
 
24

 
23

 

 
24

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.80%
 
05/2021
 
15

 
15

 

 
15

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.80%
 
05/2021
 
15

 
15

 

 
15

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.80%
 
05/2021
 
14

 
14

 

 
14

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.80%
 
05/2021
 
11

 
11

 

 
11

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.80%
 
05/2021
 
11

 
11

 

 
11

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.80%
 
05/2021
 
10

 
10

 

 
10

Rubio's Restaurants, Inc.^*
Senior loan
 
L + 5.25%
(c) 
 
8.05%
 
10/2019
 
11,145

 
11,011

 
1.2

 
11,145

Uinta Brewing Company^(7)
One stop
 
L + 8.50%
(a) 
 
11.02%
 
08/2019
 
3,725

 
3,716

 
0.2

 
1,676

Uinta Brewing Company(7)
One stop
 
L + 8.50%
(a) 
 
11.02%
 
08/2019
 
693

 
691

 

 
291

Wood Fired Holding Corp.*
One stop
 
L + 5.75%
(c) 
 
8.65%
 
12/2023
 
6,953

 
6,884

 
0.7

 
6,883

Wood Fired Holding Corp.(5)
One stop
 
L + 5.75%
 
 
N/A(6)
 
12/2023
 

 
(1
)
 

 
(1
)
Wood Fired Holding Corp.(5)
One stop
 
L + 5.75%
 
 
N/A(6)
 
12/2023
 

 
(1
)
 

 
(1
)
 
 
 
 
 
 
 
 
 
 
98,309

 
97,365

 
9.9

 
95,786

Broadcasting and Entertainment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TouchTunes Interactive Networks, Inc.^
Senior loan
 
L + 4.75%
(a) 
 
7.27%
 
05/2021
 
1,443

 
1,440

 
0.2

 
1,443

 
 
 
 
 
 
 
 
 
 


 


 


 


Building and Real Estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brooks Equipment Company, LLC^*
One stop
 
L + 5.00%
(c) 
 
7.71%
 
08/2020
 
21,096

 
21,009

 
2.2

 
21,096

Brooks Equipment Company, LLC*
One stop
 
L + 5.00%
(b)(c) 
 
7.67%
 
08/2020
 
2,107

 
2,100

 
0.2

 
2,107

Brooks Equipment Company, LLC
One stop
 
P + 3.75%
(f) 
 
9.25%
 
08/2020
 
178

 
172

 

 
178

Jensen Hughes, Inc.#
Senior loan
 
L + 4.50%
(c) 
 
6.99%
 
03/2024
 
500

 
498

 
0.1

 
500

Jensen Hughes, Inc.#
Senior loan
 
L + 4.50%
(c)(f) 
 
7.31%
 
03/2024
 
153

 
152

 

 
153

Jensen Hughes, Inc.
Senior loan
 
L + 4.50%
(c) 
 
6.96%
 
03/2024
 
29

 
29

 

 
29

MRI Software LLC^
One stop
 
L + 5.50%
(c) 
 
8.31%
 
06/2023
 
23,624

 
23,126

 
2.5

 
23,624

MRI Software LLC^*
One stop
 
L + 5.50%
(c) 
 
8.31%
 
06/2023
 
13,710

 
13,585

 
1.4

 
13,710


See Notes to Consolidated Financial Statements.
9





Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
December 31, 2018
(In thousands)

 
Investment Type
 
Spread
Above
Index(1)
 
Interest
Rate
(2)
 
Maturity
Date
 
Principal ($) /
Shares(3)
 
Amortized Cost
 
Percentage
of Net
Assets
 
Fair
Value (4)
Building and Real Estate - (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MRI Software LLC^
One stop
 
L + 5.50%
(c) 
 
8.31%
 
06/2023
 
$
356

 
$
353

 

%
$
356

MRI Software LLC*
One stop
 
L + 5.50%
(c) 
 
8.31%
 
06/2023
 
295

 
292

 

 
295

MRI Software LLC#
One stop
 
L + 5.50%
(c) 
 
8.31%
 
06/2023
 
294

 
291

 

 
294

MRI Software LLC*
One stop
 
L + 5.50%
(c) 
 
8.31%
 
06/2023
 
194

 
192

 

 
194

MRI Software LLC^
One stop
 
L + 5.50%
(c) 
 
8.31%
 
06/2023
 
165

 
163

 

 
165

MRI Software LLC
One stop
 
L + 5.50%
(c) 
 
7.90%
 
06/2023
 
105

 
104

 

 
105

MRI Software LLC
One stop
 
L + 5.50%
(a) 
 
7.98%
 
06/2023
 
19

 
16

 

 
19

MRI Software LLC(5)
One stop
 
L + 5.50%
 
 
N/A(6)
 
06/2023
 

 
(5
)
 

 

 
 
 
 
 
 
 
 
 
 
62,825

 
62,077

 
6.4

 
62,825

Chemicals, Plastics and Rubber
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Flexan, LLC*
One stop
 
L + 5.75%
(c) 
 
8.55%
 
02/2020
 
2,304

 
2,292

 
0.2

 
2,304

Flexan, LLC^
One stop
 
L + 5.75%
(c) 
 
8.55%
 
02/2020
 
1,083

 
1,080

 
0.1

 
1,083

Flexan, LLC
One stop
 
P + 4.50%
(f) 
 
10.00%
 
02/2020
 
11

 
11

 

 
11

Inhance Technologies Holdings LLC
One stop
 
L + 5.25%
(c) 
 
8.03%
 
07/2024
 
6,880

 
6,737

 
0.7

 
6,880

Inhance Technologies Holdings LLC(5)
One stop
 
L + 5.25%
 
 
N/A(6)
 
07/2024
 

 
(1
)
 

 

Inhance Technologies Holdings LLC(5)
One stop
 
L + 5.25%
 
 
N/A(6)
 
07/2024
 

 
(1
)
 

 

 
 
 
 
 
 
 
 
 
 
10,278

 
10,118

 
1.0

 
10,278

Diversified/Conglomerate Manufacturing
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Chase Industries, Inc.#
Senior loan
 
L + 4.00%
(c)(f) 
 
6.61%
 
05/2025
 
6,836

 
6,726

 
0.7

 
6,836

Chase Industries, Inc.
Senior loan
 
L + 4.00%
(c)(f) 
 
6.76%
 
05/2023
 
43

 
41

 

 
43

Chase Industries, Inc.
Senior loan
 
L + 4.00%
(c)(f) 
 
6.82%
 
05/2025
 
12

 
8

 

 
12

Inventus Power, Inc.^*
One stop
 
L + 6.50%
(a) 
 
9.02%
 
04/2020
 
7,264

 
7,250

 
0.7

 
6,538

Inventus Power, Inc.
One stop
 
L + 6.50%
(a)(c) 
 
9.09%
 
04/2020
 
271

 
270

 

 
236

Onicon Incorporated^#
One stop
 
L + 5.50%
(c) 
 
8.30%
 
04/2022
 
22,173

 
21,933

 
2.3

 
21,786

Onicon Incorporated#(8)(9)
One stop
 
L + 5.50%
(c) 
 
6.50%
 
04/2022
 
4,173

 
4,101

 
0.4

 
4,136

Onicon Incorporated(5)
One stop
 
L + 5.50%
 
 
N/A(6)
 
04/2022
 

 
(6
)
 

 
(18
)
Pasternack Enterprises, Inc. and Fairview Microwave, Inc#
Senior loan
 
L + 4.00%
(c)(f) 
 
6.52%
 
07/2025
 
5,620

 
5,594

 
0.6

 
5,620

Pasternack Enterprises, Inc. and Fairview Microwave, Inc
Senior loan
 
L + 4.00%
 
 
N/A(6)
 
07/2023
 

 

 

 

PetroChoice Holdings, Inc.^
Senior loan
 
L + 5.00%
(c) 
 
7.53%
 
08/2022
 
1,728

 
1,698

 
0.2

 
1,728

Plex Systems, Inc.^*
One stop
 
L + 7.50%
(b) 
 
10.01%
 
06/2020
 
18,797

 
18,659

 
2.0

 
18,797

Plex Systems, Inc.(5)
One stop
 
L + 7.50%
 
 
N/A(6)
 
06/2020
 

 
(12
)
 

 

Reladyne, Inc.^*
Senior loan
 
L + 5.00%
(c) 
 
7.40%
 
07/2022
 
16,836

 
16,659

 
1.7

 
16,836

Reladyne, Inc.^
Senior loan
 
L + 5.00%
(b)(c) 
 
7.39%
 
07/2022
 
173

 
171

 

 
173

Reladyne, Inc.
Senior loan
 
L + 5.00%
(b)(c) 
 
7.40%
 
07/2022
 
142

 
141

 

 
142

Reladyne, Inc.
Senior loan
 
L + 5.00%
(c) 
 
7.80%
 
07/2022
 
65

 
64

 

 
65

Reladyne, Inc.(5)
Senior loan
 
L + 5.00%
 
 
N/A(6)
 
07/2022
 

 
(2
)
 

 

Reladyne, Inc.(5)
Senior loan
 
L + 5.00%
 
 
N/A(6)
 
07/2022
 

 
(3
)
 

 

Source Refrigeration & HVAC, Inc.*
Senior loan
 
L + 4.75%
(c) 
 
7.56%
 
04/2023
 
9,429

 
9,335

 
1.0

 
9,429

Source Refrigeration & HVAC, Inc.
Senior loan
 
L + 4.75%
(c) 
 
7.56%
 
04/2023
 
111

 
110

 

 
111

Source Refrigeration & HVAC, Inc.
Senior loan
 
L + 4.75%
(c) 
 
7.56%
 
04/2023
 
57

 
56

 

 
57

Source Refrigeration & HVAC, Inc.
Senior loan
 
P + 3.75%
(f) 
 
9.25%
 
04/2023
 
43

 
42

 

 
43

Source Refrigeration & HVAC, Inc.(5)
Senior loan
 
L + 4.75%
 
 
N/A(6)
 
04/2023
 

 
(2
)
 

 

Sunless Merger Sub, Inc.#
Senior loan
 
L + 5.00%
(a) 
 
7.52%
 
07/2019
 
1,321

 
1,323

 
0.2

 
1,321

Sunless Merger Sub, Inc.
Senior loan
 
P + 3.75%
(f) 
 
9.25%
 
07/2019
 
237

 
237

 

 
237

Togetherwork Holdings, LLC#
One stop
 
L + 6.50%
(a) 
 
9.02%
 
03/2025
 
9,135

 
9,014

 
1.0

 
9,135

Togetherwork Holdings, LLC*
One stop
 
L + 6.50%
(a) 
 
9.02%
 
03/2025
 
556

 
548

 
0.1

 
556

Togetherwork Holdings, LLC
One stop
 
L + 6.50%
(a) 
 
9.02%
 
03/2025
 
150

 
147

 

 
150

Togetherwork Holdings, LLC
One stop
 
L + 6.50%
(a) 
 
9.02%
 
03/2025
 
122

 
120

 

 
122


See Notes to Consolidated Financial Statements.
10





Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
December 31, 2018
(In thousands)

 
Investment Type
 
Spread
Above
Index(1)
 
Interest
Rate
(2)
 
Maturity
Date
 
Principal ($) /
Shares(3)
 
Amortized Cost
 
Percentage
of Net
Assets
 
Fair
Value (4)
Diversified/Conglomerate Manufacturing - (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Togetherwork Holdings, LLC*
One stop
 
L + 6.50%
(a) 
 
9.02%
 
03/2025
 
$
115

 
$
114

 
$

%
$
115

Togetherwork Holdings, LLC*
One stop
 
L + 6.50%
(a) 
 
9.02%
 
03/2025
 
107

 
106

 

 
107

Togetherwork Holdings, LLC
One stop
 
L + 6.50%
(a) 
 
9.01%
 
03/2024
 
17

 
16

 

 
17

Togetherwork Holdings, LLC
One stop
 
L + 6.50%
(a) 
 
9.02%
 
03/2025
 
4

 
4