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, 2016

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 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 o No   o

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  þ
Accelerated filer o
Non-accelerated filer  o  (Do not check if a smaller reporting company)
Smaller reporting company 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 8, 2017, the Registrant had 55,237,037 shares of common stock, $0.001 par value, outstanding.

1


Part I. Financial Information
  
Item 1.
Financial Statements
 
Consolidated Statements of Financial Condition as of December 31, 2016 (unaudited) and September 30, 2016
 
Consolidated Statements of Operations for the three months ended December 31, 2016 (unaudited) and 2015 (unaudited)
 
Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2016 (unaudited) and 2015 (unaudited)
 
Consolidated Statements of Cash Flows for the three months ended December 31, 2016 (unaudited) and 2015 (unaudited)
 
Consolidated Schedules of Investments as of December 31, 2016 (unaudited) and September 30, 2016
 
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, 2016
 
September 30, 2016
 
(unaudited)
 
 
Assets
  

 
  

Investments, at fair value
  

 
  

Non-controlled/non-affiliate company investments
$
1,578,352

 
$
1,546,766

Non-controlled affiliate company investments
9,171

 
9,618

Controlled affiliate company investments
108,779

 
104,228

Total investments at fair value (amortized cost of $1,684,739 and $1,650,173, respectively)
1,696,302

 
1,660,612

Cash and cash equivalents
5,709

 
10,947

Restricted cash and cash equivalents
66,016

 
78,593

Interest receivable
5,661

 
5,935

Other assets
398

 
422

Total Assets
$
1,774,086

 
$
1,756,509

Liabilities
  

 
  

Debt
$
889,500

 
$
864,700

Less unamortized debt issuance costs
5,257

 
5,627

Debt less unamortized debt issuance costs
884,243

 
859,073

Secured borrowings, at fair value (proceeds of $458 and $471, respectively)
462

 
475

Interest payable
5,937

 
3,229

Management and incentive fees payable
11,812

 
12,763

Accounts payable and accrued expenses
1,986

 
2,072

Accrued trustee fees
76

 
72

Total Liabilities
904,516

 
877,684

Commitments and Contingencies (Note 8)
  

 
  

Net Assets
  

 
  

Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2016 and September 30, 2016

 

Common stock, par value $0.001 per share, 100,000,000 shares authorized, 55,237,037 and 55,059,067 shares issued and outstanding as of December 31, 2016 and September 30, 2016, respectively
55

 
55

Paid in capital in excess of par
859,143

 
855,998

Undistributed net investment income
5,520

 
18,832

Net unrealized appreciation (depreciation) on investments and secured borrowings
14,228

 
13,104

Net realized gain (loss) on investments
(9,376
)
 
(9,164
)
Total Net Assets
869,570

 
878,825

Total Liabilities and Total Net Assets
$
1,774,086

 
$
1,756,509

Number of common shares outstanding
55,237,037

 
55,059,067

Net asset value per common share
$
15.74

 
$
15.96


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,
  
2016
 
2015
Investment income
  

 
  

From non-controlled/non-affiliate company investments:
  

 
  

Interest income
$
30,731

 
$
27,567

Dividend income
152

 
231

Fee income
254

 
300

Total investment income from non-controlled/non-affiliate company investments
31,137

 
28,098

From non-controlled affiliate company investments:
  

 
  

Interest income
327

 

Total investment income from non-controlled affiliate company investments
327

 

From controlled affiliate company investments:
  

 
  

Interest income
1,639

 
1,626

Dividend income
746

 
776

Total investment income from controlled affiliate company investments
2,385

 
2,402

Total investment income
33,849

 
30,500

Expenses
  

 
  

Interest and other debt financing expenses
7,606

 
6,731

Base management fee
5,837

 
5,314

Incentive fee
2,091

 
1,771

Professional fees
580

 
731

Administrative service fee
601

 
503

General and administrative expenses
171

 
149

Total expenses
16,886

 
15,199

Net investment income - before excise tax
16,963

 
15,301

Excise tax
10

 
302

Net investment income - after excise tax
16,953

 
14,999

Net gain (loss) on investments and secured borrowings
  

 
  

Net realized gain (loss) on investments:
  

 
  

Non-controlled/non-affiliate company investments
907

 
2,256

Non-controlled affiliate company investments

 
2,722

Net realized gain (loss) on investments
907

 
4,978

Net change in unrealized appreciation (depreciation) on investments:
  

 
  

Non-controlled/non-affiliate company investments
2,265

 
1,831

Non-controlled affiliate company investments
(643
)
 
1,343

Controlled affiliate company investments
(498
)
 
(2,512
)
Net change in unrealized appreciation (depreciation) on investments
1,124

 
662

Net change in unrealized appreciation (depreciation) on secured borrowings

 

Net gain (loss) on investments and secured borrowings
2,031

 
5,640

Net increase in net assets resulting from operations
$
18,984

 
$
20,639

Per Common Share Data
  

 
  

Basic and diluted earnings per common share
$
0.34

 
$
0.40

Dividends and distributions declared per common share
$
0.57

 
$
0.32

Basic and diluted weighted average common shares outstanding
55,064,870

 
51,302,788


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)
 
 
 
 
 
 
 
Net Unrealized Appreciation (Depreciation) on Investments and Secured borrowings
 
 
 
 
 
Common Stock
 
Paid in Capital in Excess of Par
 
Undistributed Net Investment Income
 
 
Net Realized Gain (loss) on Investments
 
 
 
Shares
 
Par Amount
 
 
 
 
 
Total Net Assets
Balance at September 30, 2015
51,300,193

 
$
51

 
$
790,713

 
$
4,230

 
$
15,134

 
$
742

 
$
810,870

Net increase in net assets resulting from operations

 

 

 
14,999

 
662

 
4,978

 
20,639

Distributions to stockholders:
  

 
  

 
  

 
  

 
  

 
  

 
 
Stock issued in connection with dividend reinvestment plan
79,594

 

 
1,267

 

 

 

 
1,267

Distributions from net investment income

 

 

 
(3,998
)
 

 

 
(3,998
)
Distributions from realized gain

 

 

 

 

 
(12,418
)
 
(12,418
)
Total increase (decrease) for the period ended December 31, 2015
79,594

 

 
1,267

 
11,001

 
662

 
(7,440
)
 
5,490

Balance at December 31, 2015
51,379,787

 
$
51

 
$
791,980

 
$
15,231

 
$
15,796

 
$
(6,698
)
 
$
816,360

Balance at September 30, 2016
55,059,067

 
55

 
855,998

 
18,832

 
13,104

 
(9,164
)
 
878,825

Net increase in net assets resulting from operations

 

 

 
16,953

 
1,124

 
907

 
18,984

Distributions to stockholders:
  

 
  

 
  

 
  

 
  

 
  

 
 
Stock issued in connection with dividend reinvestment plan
177,970

 

 
3,145

 

 

 

 
3,145

Distributions from net investment income

 

 

 
(30,265
)
 

 

 
(30,265
)
Distributions from realized gain

 

 

 

 

 
(1,119
)
 
(1,119
)
Total increase (decrease) for the period ended December 31, 2016
177,970

 

 
3,145

 
(13,312
)
 
1,124

 
(212
)
 
(9,255
)
Balance at December 31, 2016
55,237,037

 
$
55

 
$
859,143

 
$
5,520

 
$
14,228

 
$
(9,376
)
 
$
869,570


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,
  
2016
 
2015
Cash flows from operating activities
  

 
  

Net increase in net assets resulting from operations
$
18,984

 
$
20,639

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
849

 
1,249

Accretion of discounts and amortization of premiums
(1,807
)
 
(1,891
)
Net realized (gain) loss on investments
(907
)
 
(4,978
)
Net change in unrealized (appreciation) depreciation on investments
(1,124
)
 
(662
)
Proceeds from (fundings of) revolving loans, net
(2,518
)
 
514

Fundings of investments
(122,736
)
 
(162,820
)
Proceeds from principal payments and sales of portfolio investments
93,949

 
171,356

PIK interest
(547
)
 
(197
)
Changes in operating assets and liabilities:
  

 
  

Interest receivable
274

 
(181
)
Receivable for investments sold

 
(5,079
)
Other assets
24

 
103

Interest payable
2,708

 
2,150

Management and incentive fees payable
(951
)
 
(2,188
)
Payable for investments purchased

 
4,677

Accounts payable and accrued expenses
(86
)
 
323

Accrued trustee fees
4

 
2

Net cash (used in) provided by operating activities
(13,884
)
 
23,017

Cash flows from investing activities
  

 
  

Net change in restricted cash and cash equivalents
12,577

 
(2,183
)
Net cash (used in) provided by investing activities
12,577

 
(2,183
)
Cash flows from financing activities
  

 
  

Borrowings on debt
136,250

 
56,550

Repayments of debt
(111,450
)
 
(60,750
)
Capitalized debt issuance costs
(479
)
 
(73
)
Repayments on secured borrowings
(13
)
 
(9
)
Distributions paid
(28,239
)
 
(15,149
)
Net cash provided by (used in) financing activities
(3,931
)
 
(19,431
)
Net change in cash and cash equivalents
(5,238
)
 
1,403

Cash and cash equivalents, beginning of period
10,947

 
5,468

Cash and cash equivalents, end of period
$
5,709

 
$
6,871

Supplemental disclosure of cash flow information:
  

 
  

Cash paid during the period for interest
$
4,045

 
$
3,328

Distributions declared during the period
31,384

 
16,416

Supplemental disclosure of noncash operating activity:
 
 
 
Funding of LLC equity interest in SLF
$
(78,689
)
 
$

Proceeds from subordinated notes in SLF principal payment
78,689

 

Supplemental disclosure of noncash financing activity:
 
 
 
Proceeds from issuance of Class A-Refi 2010 Notes
$
205,000

 
$

Redemptions of Class A and Class B 2010 Notes
(205,000
)
 

See Notes to Consolidated Financial Statements.

6

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited)
December 31, 2016
(In thousands)


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

 
  

 
  

 
  

Non-controlled/non-affiliate company investments
 
 
  
 
  
 
  
 
  

 
  

 
  

 
  

Debt investments
  
 
  
 
  
 
  
 
  

 
  

 
  

 
  

Aerospace and Defense
  
 
  
 
  
 
  
 
  

 
  

 
  

 
  

ILC Dover, LP*^#
One stop
 
L + 9.00%
 
8.00% cash/2.00% PIK
 
03/2020
 
$
17,701

 
$
17,575

 
1.8

%
$
15,577

ILC Dover, LP
One stop
 
L + 9.00%
 
8.00% cash/2.00% PIK
 
03/2019
 
789

 
781

 
0.1

 
694

NTS Technical Systems*^#
One stop
 
L + 6.25%
 
7.25%
 
06/2021
 
25,549

 
25,154

 
2.9

 
25,039

NTS Technical Systems(4)
One stop
 
L + 6.25%
 
N/A(5)
 
06/2021
 

 
(87
)
 

 
(71
)
NTS Technical Systems(4)
One stop
 
L + 6.25%
 
N/A(5)
 
06/2021
 

 
(144
)
 

 
(57
)
Tresys Technology Holdings, Inc.(6)
One stop
 
L + 6.75%
 
8.00%
 
12/2017
 
3,899

 
3,845

 
0.1

 
1,170

Tresys Technology Holdings, Inc.
One stop
 
L + 6.75%
 
8.00%
 
12/2017
 
618

 
616

 
0.1

 
618

Tronair Parent, Inc.
Senior loan
 
L + 4.50%
 
5.18%
 
09/2021
 
24

 
23

 

 
24

Whitcraft LLC*^
One stop
 
L + 6.50%
 
7.50%
 
05/2020
 
13,470

 
13,377

 
1.5

 
13,470

Whitcraft LLC(4)
One stop
 
L + 6.50%
 
N/A(5)
 
05/2020
 

 
(1
)
 

 

 
 
 
 
 
 
 
 
 
62,050

 
61,139

 
6.5

 
56,464

Automobile
  
 
  
 
  
 
  
 
  

 
  

 
  

 
  

CH Hold Corp. (Caliber Collision)*#
Senior loan
 
L + 5.25%
 
6.25%
 
11/2019
 
5,131

 
5,097

 
0.6

 
5,131

Dent Wizard International Corporation*
Senior loan
 
L + 4.75%
 
5.75%
 
04/2020
 
2,338

 
2,329

 
0.3

 
2,338

OEConnection LLC*
Senior loan
 
L + 5.00%
 
6.00%
 
06/2022
 
4,871

 
4,756

 
0.5

 
4,871

OEConnection LLC(4)
Senior loan
 
L + 5.00%
 
N/A(5)
 
06/2021
 

 
(1
)
 

 

T5 Merger Corporation^
One stop
 
L + 6.25%
 
7.25%
 
03/2022
 
4,145

 
4,078

 
0.5

 
4,103

T5 Merger Corporation
One stop
 
L + 6.25%
 
7.25%
 
03/2022
 
30

 
28

 

 
29

  
 
 
 
 
 
 
 
 
16,515

 
16,287

 
1.9

 
16,472

Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HedgeServ Holding L.P.*#
One stop
 
L + 8.00%
 
7.00% cash/2.00% PIK
02/2019
 
17,621

 
17,550

 
1.9

 
16,739

HedgeServ Holding L.P.(4)
One stop
 
L + 8.00%
 
N/A(5)
 
02/2019
 

 
(4
)
 

 
(47
)
 
 
 
 
 
 
 
 
 
17,621

 
17,546

 
1.9

 
16,692

Beverage, Food and Tobacco
  
 
  
 
  
 
  
 
  

 
  

 
  

 
  

Abita Brewing Co., L.L.C.
One stop
 
L + 8.00%
 
7.00% cash/2.00% PIK
 
04/2021
 
7,989

 
7,855

 
0.8

 
7,190

Abita Brewing Co., L.L.C.
One stop
 
L + 8.00%
 
7.00% cash/2.00% PIK
 
04/2021
 
9

 
8

 

 
7

ABP Corporation*
Senior loan
 
L + 4.75%
 
6.00%
 
09/2018
 
4,684

 
4,658

 
0.5

 
4,449

ABP Corporation
Senior loan
 
P + 3.50%
 
7.25%
 
09/2018
 
292

 
289

 

 
267

Atkins Nutritionals, Inc*^
One stop
 
L + 8.50%
 
9.75%
 
04/2019
 
21,636

 
21,481

 
2.5

 
21,636

Atkins Nutritionals, Inc*^#
One stop
 
L + 5.00%
 
6.25%
 
01/2019
 
16,872

 
16,766

 
1.9

 
16,872

Benihana, Inc.*^
One stop
 
L + 7.00%
 
8.25%
 
01/2019
 
16,221

 
15,973

 
1.8

 
16,072

Benihana, Inc.
One stop
 
L + 7.00%
 
8.84%
 
07/2018
 
1,020

 
990

 
0.1

 
1,000

C. J. Foods, Inc.*
One stop
 
L + 5.00%
 
6.00%
 
05/2019
 
3,133

 
3,110

 
0.4

 
3,133

C. J. Foods, Inc.
One stop
 
L + 5.00%
 
6.00%
 
05/2019
 
661

 
655

 
0.1

 
661

C. J. Foods, Inc.
One stop
 
L + 5.00%
 
6.00%
 
05/2019
 
216

 
211

 

 
216

Firebirds International, LLC*
One stop
 
L + 5.75%
 
7.00%
 
05/2018
 
1,068

 
1,063

 
0.1

 
1,068

Firebirds International, LLC*
One stop
 
L + 5.75%
 
7.00%
 
05/2018
 
301

 
299

 

 
301

Firebirds International, LLC
One stop
 
L + 5.75%
 
7.00%
 
05/2018
 
97

 
96

 

 
97

Firebirds International, LLC(4)
One stop
 
L + 5.75%
 
N/A(5)
 
05/2018
 

 
(1
)
 

 

First Watch Restaurants, Inc.*^#
One stop
 
L + 6.00%
 
7.23%
 
12/2020
 
25,529

 
25,331

 
2.9

 
25,529

First Watch Restaurants, Inc.
One stop
 
P + 5.00%
 
8.15%
 
12/2020
 
1,422

 
1,415

 
0.2

 
1,422

First Watch Restaurants, Inc.*
One stop
 
L + 6.00%
 
7.00%
 
12/2020
 
1,255

 
1,246

 
0.2

 
1,255

First Watch Restaurants, Inc.*
One stop
 
L + 6.00%
 
7.00%
 
12/2020
 
1,252

 
1,243

 
0.2

 
1,252

First Watch Restaurants, Inc.(4)
One stop
 
L + 6.00%
 
N/A(5)
 
12/2020
 

 
(8
)
 

 

Hopdoddy Holdings, LLC
One stop
 
L + 8.00%
 
9.00%
 
08/2020
 
658

 
648

 
0.1

 
658

Hopdoddy Holdings, LLC
One stop
 
L + 8.00%
 
N/A(5)
 
08/2020
 

 

 

 

Hopdoddy Holdings, LLC(4)
One stop
 
L + 8.00%
 
N/A(5)
 
08/2020
 

 
(2
)
 

 

IT'SUGAR LLC
Subordinated debt
 
N/A
 
5.00%
 
04/2020
 
1,707

 
1,707

 
0.2

 
1,355


See Notes to Consolidated Financial Statements.
7




Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
December 31, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 
Amortized Cost
 
Percentage
of Net
Assets
 
Fair
Value
Beverage, Food and Tobacco  – (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mid-America Pet Food, L.L.C.^
One stop
 
L + 6.25%
 
7.25%
 
12/2021
 
$
5,683

 
$
5,598

 
0.6

%
$
5,626

Mid-America Pet Food, L.L.C.
One stop
 
L + 6.25%
 
7.25%
 
12/2021
 
3

 
2

 

 
3

P&P Food Safety US Acquisition, Inc.*
One stop
 
L + 6.50%
 
7.50%
 
11/2021
 
4,157

 
4,106

 
0.5

 
4,115

P&P Food Safety US Acquisition, Inc.
One stop
 
L + 6.50%
 
N/A(5)
 
11/2021
 

 

 

 

Purfoods, LLC
One stop
 
L + 6.25%
 
7.25%
 
05/2021
 
8,626

 
8,439

 
1.0

 
8,626

Purfoods, LLC
One stop
 
L + 7.00%
 
7.00% PIK
 
05/2026
 
101

 
101

 

 
106

Purfoods, LLC
One stop
 
L + 6.25%
 
7.25%
 
05/2021
 
40

 
39

 

 
40

Purfoods, LLC(4)
One stop
 
L + 6.25%
 
N/A(5)
 
05/2021
 

 
(1
)
 

 

Restaurant Holding Company, LLC #
Senior loan
 
L + 7.75%
 
8.75%
 
02/2019
 
4,593

 
4,571

 
0.5

 
4,501

Rubio's Restaurants, Inc.*^
Senior loan
 
L + 4.75%
 
6.00%
 
11/2018
 
8,896

 
8,861

 
1.0

 
8,896

Smashburger Finance LLC
Senior loan
 
L + 5.50%
 
6.75%
 
05/2018
 
83

 
83

 

 
81

Smashburger Finance LLC(4)
Senior loan
 
L + 5.50%
 
N/A(5)
 
05/2018
 

 
(2
)
 

 

Surfside Coffee Company LLC#
One stop
 
L + 5.25%
 
6.25%
 
06/2020
 
4,458

 
4,427

 
0.5

 
4,458

Surfside Coffee Company LLC
One stop
 
L + 5.25%
 
6.25%
 
06/2020
 
337

 
329

 
0.1

 
337

Surfside Coffee Company LLC
One stop
 
L + 5.25%
 
6.25%
 
06/2020
 
25

 
25

 

 
25

Tate's Bake Shop, Inc.#
Senior loan
 
L + 5.00%
 
6.00%
 
08/2019
 
596

 
592

 
0.1

 
596

Uinta Brewing Company^
One stop
 
L + 8.50%
 
9.50%
 
08/2019
 
3,734

 
3,714

 
0.4

 
3,623

Uinta Brewing Company
One stop
 
L + 8.50%
 
9.50%
 
08/2019
 
385

 
383

 

 
373

 
 
 
 
 
 
 
 
 
147,739

 
146,300

 
16.7

 
145,846

Broadcasting and Entertainment
 
 
 
 
 
 
 
 
  

 
  

 
 
 
  

TouchTunes Interactive Networks, Inc.^
Senior loan
 
L + 4.75%
 
5.75%
 
05/2021
 
1,473

 
1,468

 
0.2

 
1,484

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Building and Real Estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brooks Equipment Company, LLC*^
One stop
 
L + 5.00%
 
6.00%
 
08/2020
 
22,720

 
22,513

 
2.6

 
22,720

Brooks Equipment Company, LLC(4)
One stop
 
L + 5.00%
 
N/A(5)
 
08/2020
 

 
(12
)
 

 

ITEL Laboratories, Inc.*
Senior loan
 
L + 4.50%
 
5.75%
 
06/2018
 
548

 
546

 
0.1

 
548

ITEL Laboratories, Inc.
Senior loan
 
L + 4.50%
 
N/A(5)
 
06/2018
 

 

 

 

 
 
 
 
 
 
 
 
 
23,268

 
23,047

 
2.7

 
23,268

Chemicals, Plastics and Rubber
  
 
  
 
  
 
  
 
  

 
  

 
  

 
  

Flexan, LLC*
One stop
 
L + 5.75%
 
6.75%
 
02/2020
 
2,351

 
2,328

 
0.3

 
2,327

Flexan, LLC
One stop
 
L + 5.75%
 
N/A(5)
 
02/2020
 

 

 

 

 
 
 
 
 
 
 
 
 
2,351

 
2,328

 
0.3

 
2,327

Diversified Conglomerate Manufacturing
  
 
  
 
  
 
  
 
  

 
  

 
  

 
  

Chase Industries, Inc.*^#
One stop
 
L + 5.75%
 
6.82%
 
09/2020
 
21,649

 
21,510

 
2.5

 
21,649

Chase Industries, Inc.#
One stop
 
L + 5.75%
 
7.20%
 
09/2020
 
4,807

 
4,777

 
0.5

 
4,807

Chase Industries, Inc.(4)
One stop
 
L + 5.75%
 
N/A(5)
 
09/2020
 

 
(13
)
 

 

Inventus Power, Inc.*^
One stop
 
L + 5.50%
 
6.50%
 
04/2020
 
8,409

 
8,371

 
0.9

 
7,778

Inventus Power, Inc.(4)
One stop
 
L + 5.50%
 
N/A(5)
 
04/2020
 

 
(2
)
 

 
(39
)
Onicon Incorporated*^#
One stop
 
L + 6.00%
 
7.00%
 
04/2020
 
13,338

 
13,211

 
1.5

 
13,338

Onicon Incorporated(4)
One stop
 
L + 6.00%
 
N/A(5)
 
04/2020
 

 
(6
)
 

 

PetroChoice Holdings, Inc.^
Senior loan
 
L + 5.00%
 
6.00%
 
08/2022
 
1,763

 
1,716

 
0.2

 
1,763

Plex Systems, Inc.*^
One stop
 
L + 7.50%
 
8.75%
 
06/2020
 
18,797

 
18,439

 
2.2

 
18,797

Plex Systems, Inc.(4)
One stop
 
L + 7.50%
 
N/A(5)
 
06/2020
 

 
(28
)
 

 

Reladyne, Inc.*^
Senior loan
 
L + 5.25%
 
6.25%
 
07/2022
 
10,149

 
9,999

 
1.2

 
10,149

Reladyne, Inc.*
Senior loan
 
L + 5.25%
 
6.25%
 
07/2022
 
111

 
110

 

 
111

Reladyne, Inc.
Senior loan
 
L + 5.25%
 
6.25%
 
07/2022
 
36

 
36

 

 
36

Reladyne, Inc.
Senior loan
 
L + 5.25%
 
6.25%
 
07/2022
 
26

 
24

 

 
26

Reladyne, Inc.(4)
Senior loan
 
L + 5.25%
 
N/A(5)
 
07/2022
 

 
(1
)
 

 

Sunless Merger Sub, Inc.#
Senior loan
 
L + 5.00%
 
6.25%
 
07/2019
 
1,488

 
1,496

 
0.2

 
1,488

Sunless Merger Sub, Inc.
Senior loan
 
P + 3.75%
 
7.50%
 
07/2019
 
145

 
145

 

 
145

  
 
 
 
 
 
 
 
 
80,718

 
79,784

 
9.2

 
80,048


See Notes to Consolidated Financial Statements.
8




Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
December 31, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 
Amortized Cost
 
Percentage
of Net
Assets
 
Fair
Value
Diversified Conglomerate Service
  
 
  
 
  
 
  
 
  

 
  

 
  

 
  

Accellos, Inc.*^
One stop
 
L + 5.75%
 
6.75%
 
07/2020
 
$
17,126

 
$
16,999

 
2.0

%
$
17,126

Accellos, Inc.(4)
One stop
 
L + 5.75%
 
N/A(5)
 
07/2020
 

 
(7
)
 

 

Actiance, Inc.*^
One stop
 
L + 9.00%
 
10.00%
 
10/2019
 
3,962

 
3,826

 
0.4

 
3,943

Actiance, Inc.
One stop
 
L + 9.00%
 
N/A(5)
 
10/2019
 

 

 

 

Agility Recovery Solutions Inc.*^
One stop
 
L + 6.50%
 
7.50%
 
03/2020
 
14,057

 
13,925

 
1.6

 
14,057

Agility Recovery Solutions Inc.(4)
One stop
 
L + 6.50%
 
N/A(5)
 
03/2020
 

 
(6
)
 

 

Bomgar Corporation^
One stop
 
L + 7.50%
 
8.50%
 
06/2022
 
4,876

 
4,786

 
0.6

 
4,876

Bomgar Corporation(4)
One stop
 
L + 7.50%
 
N/A(5)
 
06/2022
 

 
(2
)
 

 

CIBT Holdings, Inc^
Senior loan
 
L + 5.25%
 
6.25%
 
06/2022
 
1,973

 
1,955

 
0.2

 
1,973

CIBT Holdings, Inc
Senior loan
 
L + 5.25%
 
N/A(5)
 
06/2022
 

 

 

 

Clearwater Analytics, LLC#
One stop
 
L + 7.50%
 
8.50%
 
09/2022
 
10,025

 
9,859

 
1.2

 
10,025

Clearwater Analytics, LLC(4)
One stop
 
L + 7.50%
 
N/A(5)
 
09/2022
 

 
(2
)
 

 

Daxko Acquisition Corporation#
One stop
 
L + 6.50%
 
7.50%
 
09/2022
 
8,536

 
8,414

 
1.0

 
8,536

Daxko Acquisition Corporation
One stop
 
L + 6.50%
 
N/A(5)
 
09/2022
 

 

 

 

EGD Security Systems, LLC
One stop
 
L + 6.25%
 
7.25%
 
06/2022
 
11,113

 
10,887

 
1.3

 
11,113

EGD Security Systems, LLC^
One stop
 
L + 6.25%
 
7.25%
 
06/2022
 
98

 
97

 

 
98

EGD Security Systems, LLC(4)
One stop
 
L + 6.25%
 
N/A(5)
 
06/2022
 

 
(2
)
 

 

EGD Security Systems, LLC(4)
One stop
 
L + 6.25%
 
N/A(5)
 
06/2022
 

 
(1
)
 

 

HealthcareSource HR, Inc.
One stop
 
L + 6.75%
 
7.75%
 
05/2020
 
17,679

 
17,392

 
2.0

 
17,679

HealthcareSource HR, Inc.(4)
One stop
 
L + 6.75%
 
N/A(5)
 
05/2020
 

 
(1
)
 

 

Host Analytics, Inc.
One stop
 
N/A
 
8.50% cash/2.25% PIK
 
02/2020
 
3,046

 
2,999

 
0.4

 
3,046

Host Analytics, Inc.
One stop
 
N/A
 
8.50% cash/2.25% PIK
 
08/2021
 
2,553

 
2,402

 
0.3

 
2,553

Host Analytics, Inc.(4)
One stop
 
N/A
 
N/A(5)
 
02/2020
 

 
(8
)
 

 

III US Holdings, LLC#
One stop
 
L + 6.00%
 
7.09%
 
09/2022
 
5,496

 
5,391

 
0.6

 
5,496

III US Holdings, LLC(4)
One stop
 
L + 6.00%
 
N/A(5)
 
09/2022
 

 
(1
)
 

 

Integration Appliance, Inc.*^
One stop
 
L + 8.25%
 
9.50%
 
09/2020
 
16,123

 
15,994

 
1.9

 
16,123

Integration Appliance, Inc.
One stop
 
L + 8.25%
 
9.50%
 
09/2020
 
7,913

 
7,780

 
0.9

 
7,913

Integration Appliance, Inc.
One stop
 
L + 8.25%
 
9.50%
 
09/2020
 
5,396

 
5,313

 
0.6

 
5,396

Integration Appliance, Inc.
One stop
 
L + 8.25%
 
9.50%
 
09/2018
 
899

 
892

 
0.1

 
899

Integration Appliance, Inc.*
One stop
 
L + 8.25%
 
9.50%
 
09/2020
 
719

 
710

 
0.1

 
719

Jensen Hughes, Inc.#
Senior loan
 
L + 5.00%
 
6.00%
 
12/2021
 
134

 
133

 

 
134

Kinnser Software, Inc.
One stop
 
L + 6.50%
 
7.50%
 
12/2022
 
8,626

 
8,433

 
1.0

 
8,540

Kinnser Software, Inc.(4)
One stop
 
L + 6.50%
 
N/A(5)
 
12/2021
 

 
(1
)
 

 
(1
)
Netsmart Technologies, Inc.#
Senior loan
 
L + 4.50%
 
5.50%
 
04/2023
 
1,768

 
1,752

 
0.2

 
1,777

Netsmart Technologies, Inc.(4)
Senior loan
 
L + 4.75%
 
N/A(5)
 
04/2023
 

 
(9
)
 

 

Project Alpha Intermediate Holding, Inc.*#
One stop
 
L + 8.25%
 
9.25%
 
08/2022
 
17,214

 
16,728

 
2.0

 
17,214

PT Intermediate Holdings III, LLC
One stop
 
L + 6.50%
 
7.50%
 
06/2022
 
22,194

 
21,688

 
2.5

 
22,194

PT Intermediate Holdings III, LLC
One stop
 
P + 5.50%
 
9.25%
 
06/2022
 
25

 
22

 

 
25

Secure-24, LLC*^
One stop
 
L + 5.00%
 
6.00%
 
08/2019
 
22,604

 
22,346

 
2.6

 
22,379

Secure-24, LLC(4)
One stop
 
L + 5.00%
 
N/A(5)
 
08/2019
 

 
(6
)
 

 
(6
)
Severin Acquisition, LLC^
Senior loan
 
L + 5.38%
 
6.38%
 
07/2021
 
890

 
883

 
0.1

 
902

Severin Acquisition, LLC^
Senior loan
 
L + 5.00%
 
6.00%
 
07/2021
 
792

 
786

 
0.1

 
792

Severin Acquisition, LLC#
Senior loan
 
L + 5.00%
 
6.00%
 
07/2021
 
673

 
667

 
0.1

 
673

Severin Acquisition, LLC^
Senior loan
 
L + 5.38%
 
6.38%
 
07/2021
 
606

 
600

 
0.1

 
614

Severin Acquisition, LLC^
Senior loan
 
L + 4.88%
 
5.88%
 
07/2021
 
195

 
194

 

 
195

Source Medical Solutions, Inc.
Second lien
 
L + 11.00%
 
9.00% cash/3.00% PIK
 
03/2018
 
9,546

 
9,436

 
1.1

 
9,546

Steelwedge Software, Inc.^
One stop
 
L + 10.00%
 
9.00% cash/2.00% PIK
 
09/2020
 
2,208

 
2,125

 
0.2

 
2,208

Steelwedge Software, Inc.
One stop
 
L + 10.00%
 
N/A(5)
 
09/2020
 

 

 

 

TA MHI Buyer, Inc.^
One stop
 
L + 6.50%
 
7.50%
 
09/2021
 
8,212

 
8,155

 
0.9

 
8,212

TA MHI Buyer, Inc.*
One stop
 
L + 6.50%
 
7.50%
 
09/2021
 
1,278

 
1,266

 
0.1

 
1,278

TA MHI Buyer, Inc.^
One stop
 
L + 6.50%
 
7.50%
 
09/2021
 
664

 
658

 
0.1

 
664

TA MHI Buyer, Inc. ^
One stop
 
L + 6.50%
 
7.50%
 
09/2021
 
237

 
235

 

 
237


See Notes to Consolidated Financial Statements.
9




Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
December 31, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 
Amortized Cost
 
Percentage
of Net
Assets
 
Fair
Value
Diversified Conglomerate Service  – (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TA MHI Buyer, Inc.
One stop
 
L + 6.50%