UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  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, 2013

 

OR

 

¨        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.)

 

150 South Wacker Drive, Suite 800

Chicago, IL 60606

(Address of principal executive offices)

 

(312) 205-5050

(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  ¨

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).   Yes ¨  No  ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer  ¨ Accelerated filer þ
Non-accelerated filer  ¨  (Do not check if a smaller reporting company) Smaller reporting company ¨

 

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

 

As of May 3, 2013, the Registrant had 33,754,512 shares of common stock, $0.001 par value, outstanding.

 

 

 

 
 

 

Part I. Financial Information  
     
Item 1. Financial Statements 3
     
  Consolidated Statements of Financial Condition as of March 31, 2013 (unaudited) and September 30, 2012 3
     
  Consolidated Statements of Operations for the three and six months ended March 31, 2013 (unaudited) and 2012 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the three and six months ended March 31, 2013 (unaudited) and 2012 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the six months ended March 31, 2013 (unaudited) and 2012 (unaudited) 6
     
  Consolidated Schedules of Investments as of March 31, 2013 (unaudited) and September 30, 2012 7
     
  Notes to Consolidated Financial Statements (unaudited) 19
     
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 40
     
Item 3. Quantitative And Qualitative Disclosures About Market Risk 59
     
Item 4. Controls and Procedures 60
     
Part II.  Other Information  
     
Item 1. Legal Proceedings 61
     
Item 1A. Risk Factors 61
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 61
     
Item 3. Defaults Upon Senior Securities 61
     
Item 4. Mine Safety Disclosures 61
     
Item 5. Other Information 61
     
Item 6. Exhibits 62

 

2
 

 

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

 

      March 31, 2013        September 30, 2012   
Assets   (unaudited)      
Investments, at fair value (cost of $783,868 and $669,841, respectively)  $788,442   $672,910 
Cash and cash equivalents   8,950    13,891 
Restricted cash and cash equivalents   84,214    37,036 
Interest receivable   4,278    3,906 
Deferred financing costs   7,029    5,898 
Other assets   265    455 
Total Assets  $893,178   $734,096 
           
Liabilities          
Debt  $385,700   $352,300 
Interest payable   1,304    1,391 
Management and incentive fees payable   5,069    4,203 
Accounts payable and accrued expenses   1,452    1,073 
Total Liabilities   393,525    358,967 
           
Net Assets          
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized,
zero shares issued and outstanding as of March 31, 2013 and September 30, 2012
   -    - 
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 33,754,512
and 25,688,101 shares issued and outstanding as of March 31, 2013 and September 30, 2012, respectively
   34    26 
Paid in capital in excess of par   498,448    375,563 
Capital distributions in excess of net investment income   379    347 
Net unrealized appreciation on investments and derivative instruments   7,242    5,737 
Net realized loss on investments and derivative instruments   (6,450)   (6,544)
Total Net Assets   499,653    375,129 
Total Liabilities and Total Net Assets  $893,178   $734,096 
           
Number of common shares outstanding   33,754,512    25,688,101 
Net asset value per common share  $14.80   $14.60 

 

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 March 31,   Six months ended March 31, 
   2013   2012   2013   2012 
Investment income                    
Interest income  $19,617   $14,352   $37,944   $26,452 
Dividend income   479    -    746    377 
                     
Total investment income   20,096    14,352    38,690    26,829 
                     
Expenses                    
Interest and other debt financing expenses   3,292    2,580    6,287    4,946 
Base management fee   2,686    2,093    5,154    3,967 
Incentive fee   2,468    1,434    4,862    2,344 
Professional fees   512    559    1,006    1,147 
Administrative service fee   610    455    1,158    718 
General and administrative expenses   134    166    252    301 
                     
Total expenses   9,702    7,287    18,719    13,423 
                     
Net investment income   10,394    7,065    19,971    13,406 
                     
Net gain on investments                    
Net realized (loss) gain on investments   -    (2,817)   94    (4,932)
Net realized gain on derivative instruments   -    724    -    988 
Net change in unrealized appreciation on investments   1,857    4,032    1,505    4,375 
Net change in unrealized appreciation on derivative instruments   -    2,427    -    3,784 
                     
Net gain on investments   1,857    4,366    1,599    4,215 
                     
Net increase in net assets resulting from operations  $12,251   $11,431   $21,570   $17,621 
                     
Per Common Share Data                    
Basic and diluted earnings per common share  $0.38   $0.48   $0.71   $0.77 
Dividends and distributions declared per common share  $0.32   $0.32   $0.64   $0.64 
Basic and diluted weighted average common shares outstanding   32,532,794    24,059,623    30,207,933    22,890,820 

 

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)

 

               Capital   Net Unrealized
Appreciation
   Net Realized Gain     
   Common Stock   Paid in Capital   Distributions   (Depreciation) on   (Loss) on Investments     
       Par   in Excess   in Excess of Net   Investments and   and Derivative   Total 
   Shares   Amount   of Par   Investment Income   Derivative Instruments   Instruments   Net Assets 
Balance at September 30, 2011   21,733,903   $22   $318,302   $(398)  $(1,519)  $142   $316,549 
                                    
Issuance of common stock, net of offering and underwriting costs(1)   3,825,000    4    56,512    -    -    -    56,516 
Net increase (decrease) in net assets resulting from operations   -    -    -    13,406    8,159    (3,944)   17,621 
Distributions to stockholders:                                   
Stock issued in connection with dividend reinvestment plan   80,468    -    1,180    -    -    -    1,180 
Dividends and distributions   -    -    -    (15,141)   -    -    (15,141)
Balance at March 31, 2012   25,639,371   $26   $375,994   $(2,133)  $6,640   $(3,802)  $376,725 
                                    
                                    
Balance at September 30, 2012   25,688,101   $26   $375,563   $347   $5,737   $(6,544)  $375,129 
                                    
Issuance of common stock, net of offering and underwriting costs(2)   8,016,382    8    122,120    -    -    -    122,128 
Net increase in net assets resulting from operations   -    -    -    19,971    1,505    94    21,570 
Distributions to stockholders:                                   
Stock issued in connection with dividend reinvestment plan   50,029    -    765    -    -    -    765 
Dividends and distributions   -    -    -    (19,939)   -    -    (19,939)
Balance at March 31, 2013   33,754,512   $34   $498,448   $379   $7,242   $(6,450)  $499,653 

 

 

(1) On January 31, 2012, Golub Capital BDC, Inc. priced a public offering of 3,500,000 shares of its common stock at a public offering price of $15.35 per share. On March 1, 2012, Golub Capital BDC, Inc. sold an additional 325,000 shares of its common stock at a public offering price of $15.35 per share pursuant to the underwriters’ partial exercise of the over-allotment option.

 

(2) On October 16, 2012, Golub Capital BDC, Inc. priced a public offering of 2,600,000 shares of its common stock at a public offering price of $15.58 per share. On November 14, 2012, Golub Capital BDC, Inc. sold an additional 294,120 shares of its common stock at a public offering price of $15.58 per share pursuant to the underwriters’ partial exercise of the over-allotment option. On January 15, 2013, Golub Capital BDC, Inc. priced a public offering of 4,500,000 shares of its common stock at a public offering price of $15.87 per share. On February 20, 2013, Golub Capital BDC, Inc. sold an additional 622,262 shares of its common stock at a public offering price of $15.87 per share pursuant to the underwriters’ partial exercise of the over-allotment option.

 

See Notes to Consolidated Financial Statements.

 

5
 

 

Golub Capital BDC, Inc. and Subsidiaries        
Consolidated Statements of Cash Flows (unaudited)        
(In thousands)  Six Months Ended March 31, 
   2013   2012 
Cash flows from operating activities          
Net increase in net assets resulting from operations  $21,570   $17,621 
Adjustments to reconcile net increase in net assets resulting from           
operations to net cash used in operating activities          
Amortization of deferred financing costs   1,084    697 
Accretion of discounts and amortization of premiums   (4,465)   (2,380)
Net realized (gain) loss on investments   (94)   4,932 
Net realized gain on derivative instruments   -    (988)
Net change in unrealized appreciation on investments   (1,505)   (4,375)
Net change in unrealized appreciation on derivative instruments   -    (3,784)
Fundings of revolving loans, net   (4,242)   (616)
Fundings of investments   (288,565)   (237,606)
Proceeds from principal payments and sales of portfolio investments   183,906    86,474 
Proceeds from derivative instruments   -    988 
Payment-in-kind ("PIK") interest   (567)   (398)
Changes in operating assets and liabilities:          
Interest receivable   (372)   (653)
Cash collateral on deposit with custodian   -    353 
Other assets   190    425 
Interest payable   (87)   244 
Management and incentive fees payable   866    1,856 
Accounts payable and accrued expenses   379    318 
Payable for investments purchased   -    5,010 
Net cash used in operating activities   (91,902)   (131,882)
           
Cash flows from investing activities          
Net change in restricted cash and cash equivalents   (47,178)   (19,109)
Net cash used in investing activities   (47,178)   (19,109)
           
Cash flows from financing activities          
Borrowings on debt   172,950    131,917 
Repayments of debt   (139,550)   (37,900)
Capitalized debt financing costs   (2,215)   (1,810)
Proceeds from shares sold, net of underwriting costs   122,485    57,164 
Offering costs paid   (357)   (648)
Dividends and distributions paid   (19,174)   (13,961)
Net cash provided by financing activities   134,139    134,762 
           
Net change in cash and cash equivalents   (4,941)   (16,229)
           
Cash and cash equivalents, beginning of period   13,891    46,350 
           
Cash and cash equivalents, end of period  $8,950   $30,121 
           
Supplemental information:          
Cash paid during the period for interest  $5,290   $4,006 
Dividends and distributions declared during the period  $19,939   $15,141 

 

See Notes to Consolidated Financial Statements.

 

6
 

 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited)

March 31, 2013

(In thousands)

 

                          Percentage     
   Investment  Spread Above   Interest   Maturity   Principal       of   Fair 
   Type  Index(1)   Rate(2)   Date   Amount   Cost   Net Assets   Value 
Investments                                      
Canada                                      
Debt investments                                      
Leisure, Amusement, Motion Pictures,                                      
Entertainment                                      
Extreme Fitness, Inc.  Senior loan   N/A    10.00%   03/2013   $220   $220    -%   $220 
Extreme Fitness, Inc.  Senior loan   N/A    8.00%   02/2013    76    76    -    76 
Extreme Fitness, Inc.  Senior loan   N/A    8.00%   02/2013    626    626    0.1    626 
Extreme Fitness, Inc.(3)  Subordinated debt   N/A    12.00% cash/2.50% PIK    11/2015    2,908    2,810    -    - 
Total Canada                    $3,830   $3,732    0.1%  $922 
                                       
Fair Value as percentage of Principal Amount                                    24.1%
                                       
United States                                      
Debt investments                                      
Aerospace and Defense                                      
Aderant North America, Inc.*  Senior loan   L + 5.00%    6.25%   12/2018   $4,529   $4,486    0.9%  $4,529 
ILC Dover, LP  Senior loan   L + 5.75%    7.00%   07/2017    610    605    0.1    610 
ILC Dover, LP  Senior loan   P + 4.75%    8.00%   07/2017    211    204    -    211 
ILC Dover, LP  Senior loan   L + 5.75%    7.00%   07/2017    4,379    4,305    0.9    4,379 
Tresys Technology Holdings, Inc.(4)  One stop   L+ 6.75%   NA(5)   12/2017    -    (10)   -    - 
Tresys Technology Holdings, Inc.  One stop   L + 6.75%    8.00%   12/2017    4,025    3,930    0.8    4,025 
TurboCombustor Technology Inc.*  Senior loan   L + 4.75%    5.75%   12/2017    386    384    0.1    384 
TurboCombustor Technology Inc.*  Senior loan   L + 5.00%    6.00%   12/2017    900    896    0.2    896 
Whitcraft LLC  Subordinated debt   N/A    12.00%   12/2018    1,877    1,850    0.4    1,877 
White Oak Technologies, Inc.(4)  Senior loan   L+ 5.00%   NA(5)   03/2017    -    (8)   -    - 
White Oak Technologies, Inc.*  Senior loan   L + 5.00%    6.25%   03/2017    1,905    1,871    0.4    1,905 
                      18,822    18,513    3.8    18,816 
Automobile                                      
ABRA, Inc.  Subordinated debt   N/A    12.00% cash/1.50% PIK    04/2017    966    947    0.2    966 
ABRA, Inc.  Subordinated debt   N/A    12.00% cash/1.50% PIK    04/2017    9,623    9,466    1.9    9,623 
American Driveline Systems, Inc.  Senior loan   P + 6.50%    9.75%   01/2016    391    384    0.1    361 
American Driveline Systems, Inc.*  Senior loan   L + 7.50%    9.00%   01/2016    2,840    2,800    0.5    2,614 
CLP Auto Interior Corporation*  Senior loan   L + 4.75%    4.95%   06/2013    3,019    3,019    0.6    3,019 
Express Oil Change, LLC  Senior loan   P + 3.50%    6.75%   12/2017    119    114    -    119 
Express Oil Change, LLC  Senior loan   P + 3.50%    6.75%   12/2017    218    214    -    218 
Express Oil Change, LLC*  Senior loan   P + 3.50%    6.75%   12/2017    1,889    1,870    0.4    1,889 
Federal-Mogul Corporation  Senior loan   L + 1.94%    2.14%   12/2014    1,966    1,932    0.4    1,845 
Federal-Mogul Corporation  Senior loan   L + 1.94%    2.14%   12/2015    1,003    983    0.2    941 
K&N Engineering, Inc.(4)  Senior loan   P + 4.25%    NA(5)   12/2016    -    (7)   -    - 
K&N Engineering, Inc.  Senior loan   P + 4.25%    7.50%   12/2016    3,158    3,111    0.6    3,158 
                      25,192    24,833    4.9    24,753 
Banking                                      
Prommis Fin Co.*(3)  Senior loan   P + 10.50%    2.25% cash/11.50% PIK    06/2015    206    191    -    52 
Prommis Fin Co.  Senior loan   P + 10.00%    13.25%   06/2015    126    125    -    126 
Prommis Fin Co.*(3)  Second lien   P + 10.50%    2.25% cash/11.50% PIK    06/2015    413    382    -    - 
Prommis Fin Co.*(3)  Subordinated debt   P + 10.50%    2.25% cash/11.50% PIK    06/2015    207    191    -    - 
                      952    889    -    178 
Beverage, Food and Tobacco                                      
ABP Corporation(4)  Senior loan   L + 5.25%    NA(5)   06/2016    -    (5)   -    - 
ABP Corporation*  Senior loan   L + 5.25%    6.75%   06/2016    4,513    4,456    0.9    4,513 
Ameriqual Group, LLC*  Senior loan   L + 5.00%    6.50%   03/2016    1,727    1,706    0.3    1,675 
Ameriqual Group, LLC*  Senior loan   L + 7.50%    9.00%   03/2016    835    826    0.2    768 
Atkins Nutritionals, Inc.*  One stop   P + 8.65%    11.16%   12/2015    6,121    6,011    1.2    6,121 
Candy Intermediate Holdings, Inc.  Senior loan   L + 6.25%    7.50%   06/2018    4,962    4,811    1.0    5,056 
First Watch Restaurants, Inc.  One stop   L + 7.50%    8.75%   12/2016    420    394    0.1    420 
First Watch Restaurants, Inc.  One stop   P + 6.50%    9.75%   12/2016    140    114    -    140 
First Watch Restaurants, Inc.*  One stop   P + 6.50%    9.75%   12/2016    11,472    11,301    2.3    11,472 
IL Fornaio (America) Corporation*  Senior loan   P + 4.25%    7.50%   06/2017    4,423    4,407    0.9    4,423 
IT'SUGAR LLC  Subordinated debt   N/A    8.00%   10/2017    1,707    1,707    0.5    2,697 
IT'SUGAR LLC  Senior loan   L + 8.50%    10.00%   04/2017    4,234    4,165    0.8    4,234 
Julio & Sons Company(4)  One stop   L + 5.50%    NA(5)   09/2014    -    (11)   -    - 
Julio & Sons Company*  One stop   L + 5.50%    7.00%   09/2016    7,086    7,036    1.4    7,086 
Julio & Sons Company(4)  One stop   L + 5.50%    NA(5)   09/2016    -    (10)   -    - 
Northern Brewer, LLC  One stop   P + 5.25%    8.50%   02/2018    211    198    -    198 
Northern Brewer, LLC  One stop   P + 5.25%    8.50%   02/2018    6,494    6,334    1.3    6,397 
Richelieu Foods, Inc.  Senior loan   L + 5.00%    6.75%   11/2015    46    37    -    46 
Richelieu Foods, Inc.*  Senior loan   L + 5.00%    6.75%   11/2015    2,054    2,024    0.4    2,054 
                      56,445    55,501    11.3    57,300 
Building and Real Estate                                      
ASP PDM Acquisition Co. LLC*(3)  Senior loan   P + 7.25%    10.50%   12/2013    451    443    -    180 
Global Claims Services, Inc.(4)  Senior loan   L + 5.00%    NA(5)   06/2018    -    (1)   -    - 
Global Claims Services, Inc.*  Senior loan   L + 5.00%    6.25%   06/2018    827    816    0.2    827 
KHKI Acquisition, Inc.  Senior loan   P + 5.00%    8.50%   03/2017    2,600    2,600    0.3    1,430 
Tecta America Corp.  Senior loan   P + 5.75%    9.00%   03/2014    3,779    3,779    0.4    1,859 
                      7,657    7,637    0.9    4,296 
Cargo Transport                                      
RP Crown Parent*  Senior loan   L + 5.50%    6.75%   12/2019    1,995    1,956    0.4    2,038 
RP Crown Parent  Second lien   L + 10.00%    11.25%   12/2019    7,500    7,354    1.6    7,867 
                      9,495    9,310    2.0    9,905 
Chemicals, Plastics and Rubber                                      
Integrated DNA Technologies, Inc.  Subordinated debt   N/A    12.00% cash/2.00% PIK    04/2015    2,167    2,127    0.4    2,167 
Road Infrastructure Investment, LLC(4)  Senior loan   L + 5.00%    NA(5)   03/2017    -    (37)   -    (1)
Road Infrastructure Investment, LLC*  Senior loan   L + 5.00%    6.25%   03/2018    4,116    4,065    0.8    4,147 
                      6,283    6,155    1.2    6,313 

 

See Notes to Consolidated Financial Statements.

 

7
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (Continued)

March 31, 2013

(In thousands)

 

                          Percentage     
   Investment  Spread Above   Interest   Maturity   Principal       of Total   Fair 
   Type  Index(1)   Rate(2)   Date   Amount   Cost   Net Assets   Value 
Containers, Packaging and Glass                                      
Fort Dearborn Company*  Senior loan   L + 4.75%    6.00%   10/2017    49    49    -    49 
Fort Dearborn Company*  Senior loan   L + 5.25%    6.50%   10/2018    191    190    -    191 
Fort Dearborn Company*  Senior loan   L + 4.75%    6.00%   10/2017    471    467    0.1    471 
Fort Dearborn Company*  Senior loan   L + 5.25%    6.50%   10/2018    1,839    1,821    0.4    1,839 
John Henry Holdings Inc.  Second lien   L + 9.00%    10.25%   05/2019    1,175    1,147    0.2    1,190 
                      3,725    3,674    0.7    3,740 
Diversified Conglomerate Manufacturing                                      
Chase Industries, Inc.*  One stop   L + 6.07%    7.32%   11/2017    11,785    11,586    2.4    11,785 
Metal Spinners, Inc.*  Senior loan   L + 6.50%    8.00%   12/2014    1,381    1,354    0.3    1,381 
Metal Spinners, Inc.*  Senior loan   L + 6.50%    8.00%   12/2014    2,758    2,707    0.6    2,758 
Onicon Incorporated(4)  One stop   L + 6.75%    NA(5)   12/2017    -    (15)   -    (16)
Onicon Incorporated  One stop   L + 6.75%    8.25%   12/2017    3,675    3,604    0.7    3,601 
Pasternack Enterprises, Inc.*  Senior loan   L + 5.00%    6.25%   12/2017    1,272    1,260    0.3    1,272 
Sunless Merger Sub, Inc.  Senior loan   P + 4.00%    7.25%   07/2016    127    126    -    100 
Sunless Merger Sub, Inc.*  Senior loan   L + 5.25%    6.50%   07/2016    2,261    2,254    0.4    2,035 
Tecomet Inc.(4)  Senior loan   L + 4.50%    NA(5)   12/2016    -    (6)   -    - 
Tecomet Inc.*  Senior loan   L + 4.50%    5.75%   12/2016    6,006    5,927    1.2    6,006 
TIDI Products, LLC(4)  One stop   L + 7.00%    NA(5)   07/2017    -    (12)   -    - 
TIDI Products, LLC*  One stop   L + 7.00%    8.25%   07/2018    8,747    8,579    1.8    8,747 
Vintage Parts, Inc.*  One stop   L + 5.50%    5.78%   12/2013    5,372    5,362    1.1    5,291 
Vintage Parts, Inc.*  One stop   L + 6.00%    8.50%   12/2013    75    75    -    75 
Vintage Parts, Inc.*  One stop   L + 8.00%    9.75%   12/2013    1,122    1,114    0.2    1,139 
                      44,581    43,915    9.0    44,174 
Diversified Conglomerate Service                                      
Agility Recovery Solutions Inc.(4)  One stop   L + 6.75%    NA(5)   12/2017    -    (6)   -    - 
Agility Recovery Solutions Inc.  One stop   L + 6.75%    8.00%   12/2017    5,464    5,335    1.1    5,464 
Ahern Rentals, Inc.  Second lien   N/A    16.00%   12/2012    6,000    6,000    1.2    6,000 
API Healthcare Corporation*  One stop   L + 8.92%    10.42%   02/2017    9,341    9,201    1.9    9,341 
Consona Holdings, Inc.(4)  Senior loan   L + 5.50%    NA(5)   08/2017    -    (3)   -    - 
Consona Holdings, Inc.*  Senior loan   L + 5.50%    6.75%   08/2018    1065    1032    0.2    1065 
Consona Holdings, Inc.*  Senior loan   L + 6.00%    7.25%   08/2018    1,559    1,545    0.3    1,559 
Document Technologies, LLC(4)  Senior loan   L + 4.25%    NA(5)   12/2018    -    (14)   -    - 
Document Technologies, LLC *  Senior loan   L + 4.25%    5.50%   12/2018    6,862    6,788    1.4    6,862 
EAG, Inc.*  Senior loan   P + 3.50%    6.75%   07/2017    2,560    2,529    0.5    2,560 
HighJump Acquisition LLC  One stop   L + 8.50%    9.75%   07/2016    5,414    5,359    1.1    5,414 
Marathon Data Operating Co., LLC(4)  One stop   L + 6.25%    NA(5)   08/2017    -    (9)   -    - 
Marathon Data Operating Co., LLC  One stop   L + 6.25%    7.50%   08/2017    4,795    4,689    1.0    4,795 
MSC.Software Corporation*  One stop   L + 7.96%    9.21%   11/2017    10,288    10,105    2.0    10,134 
Navex Global, Inc.  One stop   L + 7.50%    9.00%   12/2016    420    401    0.1    420 
Navex Global, Inc.*  One stop   L + 7.50%    9.00%   12/2016    17,989    17,642    3.6    17,989 
NetSmart Technologies, Inc.  One stop   L + 7.49%    8.74%   12/2017    667    653    0.1    667 
NetSmart Technologies, Inc.*  One stop   L + 7.50%    8.75%   12/2017    8,537    8,451    1.7    8,537 
PC Helps Support, LLC(4)  Senior loan   L + 5.25%    NA(5)   09/2017    -    (2)   -    - 
PC Helps Support, LLC  Senior loan   L + 5.25%    6.50%   09/2017    2,112    2,084    0.4    2,112 
Secure-24, LLC  One stop   L + 6.25%    7.50%   08/2017    332    324    0.1    332 
Secure-24, LLC*  One stop   L + 7.00%    8.25%   08/2017    10,592    10,310    2.1    10,592 
Secure-24, LLC  One stop   L + 7.00%    8.25%   08/2017    553    524    0.1    553 
Source Medical Solutions, Inc.  Second lien   L + 9.50%    10.75%   03/2018    9,294    9,082    1.8    9,201 
                      103,844    102,020    20.7    103,597 
Electronics                                      
Cape Electrical Supply LLC*  Senior loan   L + 5.50%    6.50% cash/0.50% PIK    06/2013    1,168    1,162    0.2    1,168 
Ecommerce Industries, Inc.(4)  One stop   L + 6.75%    NA(5)   10/2016    -    (24)   -    - 
Ecommerce Industries, Inc.*  One stop   L + 8.27%    9.52%   10/2016    13,174    13,002    2.6    13,174 
Entrust, Inc./Entrust Limited*  Second lien   L + 9.50%    10.75%   04/2019    5,204    5,155    1.0    5,204 
Entrust, Inc./Entrust Limited*  Second lien   L + 9.50%    10.75%   04/2019    11,523    11,415    2.3    11,523 
Rogue Wave Holdings, Inc.*  One stop   L + 9.61%    10.86%   11/2017    6,307    6,233    1.3    6,307 
Sparta Systems, Inc.(4)  Senior loan   L + 5.25%    NA(5)   12/2017    -    (8)   -    - 
Sparta Systems, Inc.  Senior loan   L + 5.25%    6.50%   12/2017    6,838    6,757    1.4    6,838 
Syncsort Incorporated(4)  Senior loan   L + 5.50%    NA(5)   03/2015    -    (3)   -    - 
Syncsort Incorporated*  Senior loan   P + 4.25%    7.50%   03/2015    7,138    7,047    1.4    7,138 
Time-O-Matic, Inc.  Subordinated debt   N/A    12.00% cash/1.25% PIK    12/2016    11,634    11,480    2.3    11,634 
                      62,986    62,216    12.5    62,986 
Farming and Agriculture                                      
AGData, L.P.  One stop   L + 6.25%    7.75%   08/2016    2,734    2,708    0.5    2,734 
                                       
Finance                                      
Ascensus, Inc.*  One stop   L + 6.75%    8.00%   12/2018    18,048    17,701    3.6    18,048 
Bonddesk Group LLC*  Senior loan   L + 5.00%    6.50%   09/2016    995    988    0.2    995 
Compass Group Diversified Holdings, LLC*  Senior loan   P + 4.00%    7.25%   10/2017    8,344    8,020    1.7    8,397 
Pillar Processing LLC*(3)  Senior loan   L + 5.50%    5.81%   11/2018    1,706    1,697    0.3    1,535 
Pillar Processing LLC*(3)  Senior loan   N/A    14.50%   05/2019    3,125    2,714    0.1    625 
                      32,218    31,120    5.9    29,600 

 

See Notes to Consolidated Financial Statements.

 

8
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (Continued)

March 31, 2013

(In thousands)

 

                          Percentage     
   Investment  Spread Above   Interest   Maturity   Principal       of Total   Fair 
   Type  Index(1)   Rate(2)   Date   Amount   Cost   Net Assets   Value 
Healthcare, Education and Childcare                                      
Advanced Pain Management Holdings, Inc.(4)  Senior loan   L + 5.00%    NA(5)   02/2018    -    (8)   -    (8)
Advanced Pain Management Holdings, Inc.(4)  Senior loan   L + 5.00%    NA(5)   02/2018    -    (11)   -    (12)
Advanced Pain Management Holdings, Inc.*  Senior loan   L + 5.00%    6.25%   02/2018    7,401    7,328    1.5    7,327 
Alegeus Technologies, LLC*  Senior loan   L + 5.00%    6.50%   08/2018    869    857    0.2    869 
Avatar International, LLC  One stop   L + 8.00%    9.25%   09/2016    1,673    1,658    0.3    1,673 
Avatar International, LLC(4)  One stop   L + 7.50%    NA(5)   09/2016    -    (7)   -    - 
Avatar International, LLC*  One stop   L + 7.50%    8.75%   09/2016    7,754    7,661    1.6    7,754 
Campus Management Acquisition Corp.  Second lien   L + 9.14%    10.89%   09/2015    5,020    4,970    0.9    4,518 
DDC Center Inc.  One stop   P + 5.25%    10.75%   10/2013    91    91    -    91 
DDC Center Inc.*  One stop   L + 6.50%    9.50%   10/2014    8,063    8,072    1.6    8,063 
Delta Educational Systems*  Senior loan   P + 4.75%    8.00%   12/2016    2,116    2,083    0.4    2,010 
Dialysis Newco, Inc.  Subordinated debt   N/A    11.00% cash/2.00% PIK    09/2018    8,883    8,777    1.8    8,883 
Encore Rehabilitation Services, LLC(4)  One stop   L + 6.25%    NA(5)   06/2017    -    (14)   -    - 
Encore Rehabilitation Services, LLC  One stop   L + 6.25%    7.50%   06/2017    5,164    5,044    1.0    5,164 
G & H Wire Company, Inc.(4)  Senior loan   L + 5.50%    NA(5)   11/2016    -    (11)   -    - 
G & H Wire Company, Inc.*  Senior loan   L + 5.50%    7.00%   11/2016    8,915    8,789    1.8    8,915 
Healogics, Inc.  Second lien   L + 8.00%    9.25%   02/2020    16,454    16,293    3.4    16,989 
Hospitalists Management Group, LLC  Senior loan   L + 4.50%    6.00%   05/2017    455    446    0.1    410 
Hospitalists Management Group, LLC  Senior loan   L + 4.50%    6.00%   05/2017    269    260    -    224 
Hospitalists Management Group, LLC  Senior loan   L + 4.50%    6.00%   05/2017    3,814    3,749    0.7    3,624 
IntegraMed America, Inc.(4)  One stop   L + 7.25%    NA(5)   09/2017    -    (16)   -    - 
IntegraMed America, Inc.*  One stop   L + 7.25%    8.50%   09/2017    14,530    14,235    2.9    14,530 
Maverick Healthcare Group, LLC*  Senior loan   L + 5.50%    7.25%   12/2016    2,080    2,058    0.4    2,080 
NeuroTherm, Inc.  Senior loan   P + 4.00%    7.25%   02/2016    76    72    -    76 
NeuroTherm, Inc.*  Senior loan   L + 5.00%    6.50%   02/2016    1,522    1,503    0.3    1,522 
Northwestern Management Services, LLC(4)  Senior loan   L + 5.50%    NA(5)   10/2017    -    (5)   -    - 
Northwestern Management Services, LLC(4)  Senior loan   L + 5.50%    NA(5)   10/2017    -    (5)   -    - 
Northwestern Management Services, LLC*  Senior loan   L + 5.50%    6.75%   10/2017    3,065    3,031    0.6    3,065 
Pentec Acquisition Sub, Inc.(4)  Senior loan   L + 5.25%    NA(5)   05/2017    -    (3)   -    (24)
Pentec Acquisition Sub, Inc.*  Senior loan   L + 5.25%    6.50%   05/2018    2,186    2,148    0.4    1,924 
PhysioTherapy Associates Holdings, Inc.*  Senior loan   L + 4.75%    6.00%   04/2018    575    565    0.1    578 
Reliant Pro ReHab, LLC  Senior loan   L + 4.75%    6.00%   06/2016    966    954    0.2    966 
Reliant Pro ReHab, LLC  Senior loan   P + 3.75%    7.00%   06/2016    621    614    0.1    621 
Reliant Pro ReHab, LLC*  Senior loan   L + 4.75%    6.00%   06/2016    3,505    3,465    0.7    3,505 
Renaissance Pharma (U.S.) Holdings Inc.(4)  Senior loan   L + 5.25%    NA(5)   06/2017    -    (5)   -    - 
Renaissance Pharma (U.S.) Holdings Inc.  Senior loan   L + 5.25%    6.75%   06/2017    2,388    2,347    0.5    2,388 
Southern Anesthesia and Surgical(4)  One stop   L + 7.00%    NA(5)   11/2017    -    (15)   -    - 
Southern Anesthesia and Surgical  One stop   L + 7.00%    8.25%   11/2017    6,312    6,167    1.3    6,312 
Surgical Information Systems, LLC  Senior loan   L + 8.12%    9.62%   12/2015    3,730    3,689    0.7    3,730 
WIL Research Company, Inc.*  Senior loan   L + 5.25%    6.75%   04/2018    788    778    0.2    788 
Young Innovations, Inc.(4)  Senior loan   L + 5.00%    NA(5)   01/2018    -    (3)   -    (3)
Young Innovations, Inc.  Senior loan   L + 5.00%    6.25%   01/2019    4,937    4,901    1.0    4,900 
                      124,222    122,502    24.7    123,452 
Home and Office Furnishings,                                      
  Housewares, and Durable Consumer                                      
Top Knobs USA, Inc.*  Senior loan   L + 5.75%    7.00%   11/2017    2,124    2,099    0.4    2,124 
WII Components, Inc.  Senior loan   P + 3.75%    7.00%   07/2016    9    8    -    9 
WII Components, Inc.*  Senior loan   L + 4.75%    6.25%   07/2016    1,685    1,669    0.3    1,685 
Zenith Products Corporation*  One stop   L + 5.75%    5.95%   09/2013    3,329    3,308    0.7    3,329 
                      7,147    7,084    1.4    7,147 
Insurance                                      
AssuredPartners Capital, Inc.(4)  Senior loan   L + 5.25%