Edgar Filing: Golub Capital BDC, Inc.

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 December 31, 2013

¨ 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 February 6, 2014, the Registrant had 43,325,575 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 December 31, 2013 (unaudited) and September 30, 2013	3

	Consolidated Statements of Operations for the three months ended December 31, 2013 (unaudited) and 2012 (unaudited)	4

	Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2013 (unaudited) and 2012 (unaudited)	5

	Consolidated Statements of Cash Flows for the three months ended December 31, 2013 (unaudited) and 2012 (unaudited)	6

	Consolidated Schedules of Investments as of December 31, 2013 (unaudited) and September 30, 2013	7

	Notes to Consolidated Financial Statements (unaudited)	21

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	50

Item 3.	Quantitative And Qualitative Disclosures About Market Risk	76

Item 4.	Controls and Procedures	77

Part II. Other Information

Item 1.	Legal Proceedings	78

Item 1A.	Risk Factors	78

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	78

Item 3.	Defaults Upon Senior Securities	78

Item 4.	Mine Safety Disclosures	78

Item 5.	Other Information	78

Item 6.	Exhibits	79

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(In thousands, except share and per share data)

	December 31, 2013			September 30, 2013
	(unaudited)
Assets
Investments, at fair value
Non-controlled/non-affiliate company investments	$	1,144,290		$	1,011,586
Non-controlled affiliate company investments		2,879			8,225
Controlled affiliate company investments		32,750			4,834
Total investments at fair value (cost of $1,166,589 and $1,017,961, respectively)		1,179,919			1,024,645
Cash and cash equivalents		31,891			16,309
Restricted cash and cash equivalents		39,792			38,408
Interest receivable		4,178			4,316
Deferred financing costs		8,884			7,742
Other assets		163			236
Total Assets	$	1,264,827		$	1,091,656

Liabilities
Debt	$	577,200		$	412,100
Secured borrowings, at fair value (proceeds of $14,164 and $8,683, respectively)		14,366			8,809
Interest payable		3,159			1,277
Management and incentive fees payable		6,751			5,579
Payable for open trades		1,657			3,677
Accounts payable and accrued expenses		1,713			1,978
Total Liabilities		604,846			433,420

Net Assets
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2013 and September 30, 2013		-			-
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 43,325,575 and 43,282,932 shares issued and outstanding as of December 31, 2013 and September 30, 2013, respectively		43			43
Paid in capital in excess of par		653,427			652,669
Undistributed net investment income		2,135			2,725
Net unrealized appreciation on investments, derivative instruments and secured borrowings		15,796			9,225
Net realized loss on investments and derivative instruments		(11,420	)		(6,426	)
Total Net Assets		659,981			658,236
Total Liabilities and Total Net Assets	$	1,264,827		$	1,091,656

Number of common shares outstanding		43,325,575			43,282,932
Net asset value per common share	$	15.23		$	15.21

See Notes to Consolidated Financial Statements.

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

(In thousands, except share and per share data)

	Three months ended December 31,
	2013			2012
Investment income
From non-controlled/non-affiliate company investments:
Interest income	$	24,986		$	18,176
Dividend income		16			267
Total investment income from non-controlled/non-affiliate company investments		25,002			18,443

From non-controlled affiliate company investments:
Interest income		396			151
Total investment income from non-controlled affiliate company investments		396			151

From controlled affiliate company investments:
Interest income		181			-
Total investment income from controlled affiliate company investments		181			-
Total investment income		25,579			18,594

Expenses
Interest and other debt financing expenses		4,092			2,995
Base management fee		3,824			2,468
Incentive fee		3,032			2,394
Professional fees		658			493
Administrative service fee		582			548
General and administrative expenses		131			118
Total expenses		12,319			9,016
Net investment income		13,260			9,578

Net gain (loss) on investments and secured borrowings
Net realized gains (losses) on investments:
Non-controlled/non-affiliate company investments		(4,994	)		94
Net realized gains (losses) on investments:		(4,994	)		94

Net unrealized appreciation (depreciation) on investments:
Non-controlled/non-affiliate company investments		6,133			(351	)
Non-controlled affiliate company investments		274			(2	)
Controlled affiliate company investments		240			-
Net unrealized appreciation (depreciation) on investments		6,647			(353	)

Net change in unrealized (appreciation) depreciation on secured borrowings		(76	)		-

Net gain (loss) on investments and secured borrowings		1,577			(259	)

Net increase in net assets resulting from operations	$	14,837		$	9,319

Per Common Share Data
Basic and diluted earnings per common share	$	0.34		$	0.33
Dividends and distributions declared per common share	$	0.32		$	0.32
Basic and diluted weighted average common shares outstanding		43,285,250			27,933,613

See Notes to Consolidated Financial Statements.

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Changes in Net Assets (unaudited)

(In thousands, except share data)

										Net Unrealized Appreciation
										(Depreciation) on
							Capital			Investments,			Net Realized Gain
	Common Stock				Paid in Capital		Distributions and			Derivative Instruments			(Loss) on Investments
			Par		in Excess		Undistributed Net			and Secured			and Derivative			Total
	Shares		Amount		of Par		Investment Income			Borrowings			Instruments			Net Assets
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⁽¹⁾		2,894,120		3		43,742		-			-			-			43,745
Net increase in net assets resulting from operations		-		-		-		9,578			(353	)		94			9,319
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan		23,115		-		343		-			-			-			343
Dividends and distributions		-		-		-		(9,146	)		-			-			(9,146	)
Balance at December 31, 2012		28,605,336	$	29	$	419,648	$	779		$	5,384		$	(6,450	)	$	419,390
Balance at September 30, 2013		43,282,932	$	43	$	652,669	$	2,725		$	9,225		$	(6,426	)	$	658,236
Issuance of common stock, net of offering and underwriting costs		-		-		-		-			-			-			-
Net increase in net assets resulting from operations		-		-		-		13,260			6,571			(4,994	)		14,837
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan		42,643		-		758		-			-			-			758
Dividends and distributions		-		-		-		(13,850	)		-			-			(13,850	)
Balance at December 31, 2013		43,325,575	$	43	$	653,427	$	2,135		$	15,796		$	(11,420	)	$	659,981

⁽¹⁾ 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.

See Notes to Consolidated Financial Statements.

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)

(In thousands)	Three Months Ended December 31,
	2013			2012
Cash flows from operating activities
Net increase in net assets resulting from operations	$	14,837		$	9,319
Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities
Amortization of deferred financing costs		439			366
Accretion of discounts and amortization of premiums		(1,865	)		(2,440	)
Net realized loss (gain) on investments		4,994			(94	)
Net change in unrealized (appreciation) depreciation on investments		(6,647	)		353
Net change in unrealized appreciation (depreciation) on secured borrowings		76			-
Proceeds from (fundings of) revolving loans, net		277			(2,828	)
Fundings of investments		(256,213	)		(235,325	)
Proceeds from principal payments and sales of portfolio investments		103,570			145,609
PIK interest		653			(705	)
Changes in operating assets and liabilities:
Interest receivable		138			661
Other assets		73			58
Interest payable		1,882			1,082
Management and incentive fees payable		1,172			579
Payable for investments purchased		(2,020	)		10,456
Accounts payable and accrued expenses		(265	)		379
Net cash (used in) provided by operating activities		(138,899	)		(72,530	)

Cash flows from investing activities
Net change in restricted cash and cash equivalents		(1,384	)		(2,190	)
Net cash (used in) provided by investing activities		(1,384	)		(2,190	)

Cash flows from financing activities
Borrowings on debt		215,350			107,650
Repayments of debt		(50,250	)		(59,500	)
Capitalized debt financing costs		(1,581	)		(841	)
Proceeds from secured borrowings		16,448			-
Repayments on secured borrowings		(11,010	)		-
Proceeds from shares sold, net of underwriting costs		-			43,825
Offering costs paid		-			(80	)
Dividends and distributions paid		(13,092	)		(8,805	)
Net cash (used in) provided by financing activities		155,865			82,249

Net change in cash and cash equivalents		15,582			7,529

Cash and cash equivalents, beginning of period		16,309			13,891

Cash and cash equivalents, end of period	$	31,891		$	21,420

Supplemental information:
Cash paid during the period for interest	$	1,592		$	1,547
Dividends and distributions declared during the period	$	13,850		$	9,146

See Notes to Consolidated Financial Statements.

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited)

December 31, 2013

(In thousands)

		Spread													Percentage
	Investment	Above			Interest			Maturity		Principal					of			Fair
	Type	Index ⁽¹⁾			Rate⁽²⁾			Date		Amount		Cost			Net Assets			Value
Investments
United States
Debt investments
Aerospace and Defense
ILC Dover, LP	Senior loan		P + 5.00	%		8.25	%		07/2017	$	21	$	15			-	%	$	17
ILC Dover, LP	Senior loan		L + 6.00	%		7.29	%		07/2017		4,324		4,263			0.6			4,281
ILC Dover, LP	Senior loan		L + 6.00	%		7.29	%		07/2017		603		598			0.1			597
NTS Technical Systems⁽⁴⁾	One Stop		L + 5.50	%		N/A	⁽⁵⁾		11/2018		-		(19	)		-			(9	)
NTS Technical Systems	One Stop		L + 5.50	%		6.75	%		11/2018		14,764		14,472			2.2			14,616
NTS Technical Systems⁽⁴⁾	One Stop		L + 5.50	%		N/A	⁽⁵⁾		11/2018		-		(60	)		-			(30	)
Tresys Technology Holdings, Inc.⁽⁴⁾	One Stop		L + 6.75	%		N/A	⁽⁵⁾		12/2017		-		(8	)		-			-
Tresys Technology Holdings, Inc.	One Stop		L + 6.75	%		8.00	%		12/2017		3,950		3,871			0.5			3,476
Whitcraft LLC	Subordinated Debt		N/A			12.00	%		12/2018		1,877		1,854			0.3			1,877
White Oak Technologies, Inc.⁽⁴⁾	Senior loan		L + 5.00	%		N/A	⁽⁵⁾		03/2017		-		(8	)		-			-
White Oak Technologies, Inc.*	Senior loan		L + 5.00	%		6.25	%		03/2017		1,808		1,776			0.3			1,808
											27,347		26,754			4.0			26,633
Automobile
ABRA, Inc.⁽⁸⁾	One Stop		P + 4.75	%		8.00	%		05/2018		934		916			0.1			934
ABRA, Inc.⁽⁸⁾	One Stop		L + 6.00	%		7.25	%		05/2018		5,092		5,058			0.8			5,092
ABRA, Inc.*⁽⁸⁾	One Stop		L + 6.00	%		7.25	%		05/2018		26,229		25,976			4.0			26,229
ABRA, Inc.^(4),(8)	One Stop		L + 5.75	%		N/A	⁽⁵⁾		05/2018		-		(84	)		-			-
ABRA, Inc.	One Stop		L + 7.75	%		9.00	%		05/2018		4,797		4,721			0.7			4,797
American Driveline Systems, Inc.	Senior loan		L + 5.50	%		7.14	%		01/2016		287		282			-			248
American Driveline Systems, Inc.*	Senior loan		L + 5.50	%		7.00	%		01/2016		2,819		2,783			0.4			2,537
K&N Engineering, Inc.⁽⁴⁾	Senior loan		L + 4.50	%		N/A	⁽⁵⁾		04/2018		-		(7	)		-			-
K&N Engineering, Inc.*	Senior loan		L + 4.50	%		5.75	%		04/2018		3,732		3,683			0.6			3,732
K&N Engineering, Inc.	Senior loan		P + 3.50	%		6.75	%		04/2018		3,529		3,483			0.5			3,529
Take 5 Oil Change, L.L.C.	Senior loan		L + 5.25	%		6.25	%		07/2018		55		52			-			55
Take 5 Oil Change, L.L.C.	Senior loan		L + 5.25	%		6.25	%		07/2018		2,971		2,951			0.5			2,971
											50,445		49,814			7.6			50,124
Banking
Prommis Fin Co.⁽³⁾	Senior loan		P + 10.00	%		13.25	%		06/2015		85		84			-			2
Prommis Fin Co.*⁽³⁾	Senior loan		N/A			2.25% cash/8.25% PIK			06/2015		124		124			-			3
											209		208			-			5
Beverage, Food and Tobacco
ABP Corporation⁽⁴⁾	Senior loan		P + 3.50	%		N/A	⁽⁵⁾		06/2016		-		(4	)		-			-
ABP Corporation*	Senior loan		L + 4.75	%		6.00	%		06/2016		4,478		4,434			0.7			4,478
American Importing Company, Inc.	One Stop		L + 5.75	%		7.00	%		05/2018		14,769		14,597			2.2			14,769
Ameriqual Group, LLC*	Senior loan		L + 5.00	%		6.50% cash/0.75% PIK			03/2016		1,727		1,703			0.3			1,658
Ameriqual Group, LLC*	Senior loan		L + 7.50	%		9.00% cash/1.25% PIK			03/2016		829		821			0.1			713
ARG IH Corporation (Arby's)	Senior loan		L + 4.00	%		5.00	%		11/2020		2,355		2,326			0.4			2,372
Atkins Nutritionals, Inc*	One Stop		L + 5.00	%		6.25	%		01/2019		22,282		22,052			3.4			22,560
Atkins Nutritionals, Inc*	One Stop		L + 8.50	%		9.75	%		04/2019		17,270		16,851			2.7			17,637
Candy Intermediate Holdings, Inc. (Ferrara Candy)	Senior loan		L + 6.25	%		7.50	%		06/2018		4,925		4,795			0.7			4,682
Diversified Foodservice Supply, Inc.⁽⁴⁾	Senior loan		L + 4.75	%		N/A	⁽⁵⁾		12/2018		-		(3	)		-			(3	)
Diversified Foodservice Supply, Inc.*	Senior loan		L + 4.75	%		6.00	%		12/2018		4,476		4,431			0.7			4,431
Firebirds International, LLC⁽⁴⁾	One Stop		L + 5.75	%		N/A	⁽⁵⁾		05/2018		-		(2	)		-			-
Firebirds International, LLC*	One Stop		L + 5.75	%		7.00	%		05/2018		907		897			0.1			907
Firebirds International, LLC	One Stop		L + 5.75	%		7.00	%		05/2018		180		176			-			180
Firebirds International, LLC⁽⁴⁾	One Stop		L + 5.75	%		N/A	⁽⁵⁾		05/2018		-		(3	)		-			-
First Watch Restaurants, Inc.	One Stop		L + 7.50	%		8.86	%		12/2016		1,068		1,047			0.2			1,068
First Watch Restaurants, Inc.*	One Stop		L + 7.50	%		8.77	%		12/2016		11,356		11,221			1.7			11,356
First Watch Restaurants, Inc.	One Stop		L + 7.50	%		8.75	%		12/2016		417		412			0.1			417
IT'SUGAR LLC	Senior loan		L + 8.50	%		10.00	%		04/2017		4,202		4,146			0.6			4,202
IT'SUGAR LLC	Subordinated Debt		N/A			8.00	%		10/2017		1,707		1,707			0.4			2,458
Julio & Sons Company	One Stop		L + 7.00	%		8.50	%		09/2016		224		216			-			224
Julio & Sons Company*	One Stop		L + 7.00	%		8.50	%		09/2016		7,032		6,993			1.1			7,032
Julio & Sons Company⁽⁴⁾	One Stop		L + 7.00	%		N/A	⁽⁵⁾		09/2016		-		(12	)		-			-
Northern Brewer, LLC	One Stop		L + 6.50	%		8.06	%		02/2018		453		442			0.1			453
Northern Brewer, LLC	One Stop		L + 6.50	%		8.00	%		02/2018		6,372		6,240			1.0			6,372
Richelieu Foods, Inc.	Senior loan		P + 4.00	%		7.25	%		11/2015		65		57			-			65
Richelieu Foods, Inc.*	Senior loan		L + 5.00	%		6.75	%		11/2015		1,940		1,913			0.3			1,940
Smashburger Finance LLC	Senior loan		P + 3.00	%		6.25	%		05/2018		819		810			0.1			819
Smashburger Finance LLC*	Senior loan		L + 4.25	%		5.50	%		05/2018		6,516		6,471			1.0			6,516
											116,369		114,734			17.9			117,306

See Notes to Consolidated Financial Statements.

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (Continued)

December 31, 2013

(In thousands)

		Spread													Percentage
	Investment	Above			Interest			Maturity		Principal					of		Fair
	Type	Index ⁽¹⁾			Rate⁽²⁾			Date		Amount		Cost			Net Assets		Value
Building and Real Estate
ITEL Laboratories, Inc.⁽⁴⁾	Senior loan		L + 4.75	%		N/A	⁽⁵⁾		06/2018		-		(1	)		-		-
ITEL Laboratories, Inc.*	Senior loan		L + 4.75	%		6.00	%		06/2018		799		790			0.1		799
											799		789			0.1		799
Cargo Transport
RP Crown Parent (RedPrairie Corp)*	Senior loan		L + 5.50	%		6.75	%		12/2018		1,985		1,952			0.3		1,998
											1,985		1,952			0.3		1,998
Chemicals, Plastics and Rubber
Integrated DNA Technologies, Inc.	Subordinated debt		N/A			12.00% cash/2.00% PIK			04/2015		321		319			0.1		321
Integrated DNA Technologies, Inc.	Subordinated debt		N/A			12.00% cash/2.00% PIK			04/2015		905		887			0.1		905
Integrated DNA Technologies, Inc.	Subordinated debt		N/A			12.00% cash/2.00% PIK			04/2015		321		316			-		321
Road Infrastructure Investment, LLC⁽⁴⁾	Senior loan		L + 5.00	%		N/A	⁽⁵⁾		03/2017		-		(30 )			-		(1	)
Road Infrastructure Investment, LLC*	Senior loan		L + 5.00	%		6.25	%		03/2018		4,515		4,472			0.7		4,552
											6,062		5,964			0.9		6,098
Containers, Packaging and Glass
Fort Dearborn Company*	Senior loan		L + 4.25	%		5.86	%		10/2017		39		39			-		39
Fort Dearborn Company*	Senior loan		L + 4.25	%		5.25	%		10/2017		547		543			0.1		547
Fort Dearborn Company*	Senior loan		L + 4.75	%		6.37	%		10/2018		156		155			-		156
Fort Dearborn Company*	Senior loan		L + 4.75	%		5.75	%		10/2018		2,197		2,182			0.3		2,197
Packaging Coordinators, Inc.*	Senior loan		L + 4.25	%		5.51	%		05/2020		6,792		6,754			1.0		6,792
Packaging Coordinators, Inc.	Second Lien		L + 8.25	%		9.50	%		11/2020		29,098		28,270			4.4		29,098
Packaging Coordinators, Inc.⁽⁴⁾	Senior loan		L + 4.25	%		N/A	⁽⁵⁾		05/2020		-		-			-		-
											38,829		37,943			5.8		38,829
Diversified Conglomerate Manufacturing
Chase Industries, Inc.*	One Stop		L + 5.00	%		6.82	%		11/2017		13,426		13,249			2.0		13,426
Metal Spinners, Inc.*	Senior loan		L + 6.50	%		8.00	%		12/2014		1,338		1,323			0.2		1,338
Metal Spinners, Inc.*	Senior loan		L + 6.50	%		8.00	%		12/2014		2,647		2,619			0.4		2,647
Onicon Incorporated⁽⁴⁾	One Stop		L + 6.75	%		N/A	⁽⁵⁾		12/2017		-		(13	)		-		-
Onicon Incorporated	One Stop		L + 6.75	%		8.31	%		12/2017		3,583		3,525			0.6		3,583
Pasternack Enterprises, Inc.*	Senior loan		L + 5.00	%		6.25	%		12/2017		1,167		1,158			0.2		1,167
Plex Systems, Inc.⁽⁴⁾	Senior loan		L + 7.50	%		N/A	⁽⁵⁾		06/2018		-		(26	)		-		-
Plex Systems, Inc.*	Senior loan		L + 7.50	%		8.75	%		06/2018		13,670		13,375			2.1		13,670
Sunless Merger Sub, Inc.	Senior loan		P + 4.00	%		7.25	%		07/2016		144		144			-		111
Sunless Merger Sub, Inc.*	Senior loan		L + 5.25	%		6.51	%		07/2016		1,851		1,846			0.2		1,388
TIDI Products, LLC⁽⁴⁾	One Stop		L + 6.50	%		N/A	⁽⁵⁾		07/2017		-		(14	)		-		-
TIDI Products, LLC*	One Stop		L + 6.50	%		7.75	%		07/2018		11,168		10,957			1.7		11,168
Vintage Parts, Inc.*	One Stop		L + 4.50	%		5.75	%		12/2015		4,623		4,576			0.7		4,623
Vintage Parts, Inc.*	One Stop		L + 4.50	%		5.75	%		12/2015		64		64			-		64
Vintage Parts, Inc.*	One Stop		L + 4.50	%		5.75	%		12/2015		966		974			0.1		966
											54,647		53,757			8.2		54,151
Diversified Conglomerate Service
Aderant North America, Inc.*	Senior loan		L + 5.00	%		6.25	%		12/2018		4,495		4,458			0.7		4,495
Agility Recovery Solutions Inc.⁽⁴⁾	One Stop		L + 7.00	%		N/A	⁽⁵⁾		09/2018		-		(7	)		-		-
Agility Recovery Solutions Inc.*	One Stop		L + 7.00	%		8.25	%		09/2018		9,349		9,169			1.4		9,349
API Healthcare Corporation*	One Stop		L + 6.25	%		9.93	%		04/2018		33,722		33,468			5.1		33,722
Consona Holdings, Inc.⁽⁴⁾	Senior loan		L + 5.50	%		N/A	⁽⁵⁾		08/2017		-		(2	)		-		-
Consona Holdings, Inc.*	Senior loan		L + 5.50	%		6.75	%		08/2018		1,024		996			0.2		1,024
Consona Holdings, Inc.*	Senior loan		L + 6.00	%		7.25	%		08/2018		1,547		1,535			0.2		1,547
Document Technologies, LLC ⁽⁴⁾	Senior loan		L + 4.25	%		N/A	⁽⁵⁾		12/2018		-		(12	)		-		-
Document Technologies, LLC*	Senior loan		L + 4.25	%		5.50	%		12/2018		6,690		6,629			1.0		6,690
EAG, INC. (Evans Analytical Group)*	Senior loan		L + 4.50	%		6.00	%		07/2017		2,425		2,401			0.4		2,425
HighJump Acquisition LLC	One Stop		L + 7.50	%		8.75	%		07/2016		7,124		7,064			1.1		7,124
Integration Appliance, Inc.	Senior loan		L + 8.25	%		9.50	%		09/2018		719		709			0.1		709
Integration Appliance, Inc.	Senior loan		L + 8.25	%		9.50	%		09/2018		5,396		5,268			0.8		5,315
Marathon Data Operating Co., LLC ⁽⁴⁾	One Stop		L + 6.25	%		N/A	⁽⁵⁾		08/2017		-		(8	)		-		-
Marathon Data Operating Co., LLC	One Stop		L + 6.25	%		7.50	%		08/2017		4,761		4,674			0.7		4,761
MSC.Software Corporation*	One Stop		L + 6.50	%		8.51	%		11/2017		9,898		9,748			1.5		9,898
Navex Global, Inc.⁽⁴⁾	One Stop		L + 7.50	%		N/A	⁽⁵⁾		12/2016		-		(15	)		-		(25	)
Navex Global, Inc.*	One Stop		L + 7.50	%		9.00	%		12/2016		17,643		17,370			2.6		17,290
NetSmart Technologies, Inc.	One Stop		L + 6.00	%		8.77	%		12/2017		8,324		8,254			1.3		8,324
NetSmart Technologies, Inc.*	One Stop		L + 6.00	%		8.79	%		12/2017		650		639			0.1		650
PC Helps Support, LLC⁽⁴⁾	Senior loan		L + 5.25	%		N/A	⁽⁵⁾		09/2017		-		(2	)		-		-
PC Helps Support, LLC	Senior loan		L + 5.25	%		6.52	%		09/2017		1,973		1,951			0.3		1,973
Secure-24, LLC⁽⁴⁾	One Stop		L + 7.00	%		N/A	⁽⁵⁾		08/2017		-		(6	)		-		(22	)
Secure-24, LLC*	One Stop		L + 7.00	%		8.25	%		08/2017		10,512		10,280			1.5		10,092
Secure-24, LLC	One Stop		L + 7.00	%		8.25	%		08/2017		1,538		1,513			0.2		1,476
Source Medical Solutions, Inc.	Second Lien		L + 9.50	%		10.75	%		03/2018		9,294		9,114			1.4		9,294
Vericlaim, Inc.⁽⁴⁾	Senior loan		P + 3.50	%		N/A	⁽⁵⁾		05/2018		-		(3	)		-		-
Vericlaim, Inc.	Senior loan		L + 4.75	%		6.00	%		05/2018		6,343		6,311			1.0		6,343
											143,427		141,496			21.6		142,454

See Notes to Consolidated Financial Statements.

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (Continued)

December 31, 2013

(In thousands)

		Spread													Percentage
	Investment	Above			Interest			Maturity		Principal					of Total		Fair
	Type	Index ⁽¹⁾			Rate⁽²⁾			Date		Amount		Cost			Net Assets		Value
Electronics
BeyondTrust Software, Inc.	One Stop		L + 6.00	%		7.25	%		12/2019		12,014		11,754			1.8		11,840
Ecommerce Industries, Inc.*	One Stop		L + 6.75	%		9.60	%		10/2016		12,345		12,218			1.9		12,345
Rogue Wave Holdings, Inc.*	One Stop		L + 6.50	%		7.50	%		12/2018		10,885		10,750			1.6		10,777
Sloan Company, Inc., The⁽⁴⁾	One Stop		L + 7.50	%		N/A	⁽⁵⁾		10/2018		-		(16	)		-		(13	)
Sloan Company, Inc., The*	One Stop		L + 7.50	%		8.75	%		10/2018		13,277		13,119			2.0		13,144
Sparta Systems, Inc.⁽⁴⁾	Senior loan		L + 5.25	%		N/A	⁽⁵⁾		12/2017		-		(6	)		-		-
Sparta Systems, Inc.	Senior loan		L + 5.25	%		6.50	%		12/2017		6,359		6,295			1.0		6,359
Syncsort Incorporated⁽⁴⁾	Senior loan		L + 5.50	%		N/A	⁽⁵⁾		03/2015		-		(2	)		-		-
Syncsort Incorporated*	Senior loan		P + 4.25	%		7.50	%		03/2015		6,271		6,210			1.0		6,271
Systems Maintenance Services Holding, Inc.	Senior loan		L + 4.25	%		5.25	%		10/2019		2,670		2,657			0.4		2,657
Taxware, LLC	Second Lien		L + 8.50	%		9.50	%		10/2019		11,099		10,884			1.7		11,099
Watchfire Enterprises, Inc.	Second Lien		L + 8.00	%		9.00	%		10/2021		9,435		9,253			1.4		9,293
											84,355		83,116			12.8		83,772
Farming and Agriculture
AGData, L.P.*	One stop		L + 6.00	%		7.25	%		08/2016		3,828		3,792			0.6		3,828
											3,828		3,792			0.6		3,828
Finance
Ascensus, Inc.*⁽⁴⁾	One Stop		L + 4.00	%		N/A	⁽⁵⁾		11/2018		-		(19	)		-		(5	)
Ascensus, Inc.*	One Stop		L + 4.00	%		5.00	%		12/2019		4,224		4,141			0.6		4,203
Ascensus, Inc.*	One Stop		L + 8.00	%		9.00	%		12/2020		6,337		6,117			1.0		6,242
Pillar Processing LLC*	Senior loan		L + 5.50	%		5.74	%		11/2018		1,194		1,191			0.1		597
Pillar Processing LLC*⁽³⁾	Senior loan		N/A			14.50	%		05/2019		2,377		2,369			-		-
											14,132		13,799			1.7		11,037
Grocery
MyWebGrocer, Inc.⁽⁴⁾	Senior loan		L + 4.75	%		N/A	⁽⁵⁾		05/2018		-		(14	)		-		-
MyWebGrocer, Inc.	Senior loan		L + 4.75	%		6.00% cash/4.00% PIK			05/2018		14,271		14,051			2.2		14,271
Teasdale Quality Foods, Inc.*	Senior loan		L + 4.50	%		5.75	%		05/2018		2,793		2,768			0.4		2,793
											17,064		16,805			2.6		17,064
Healthcare, Education and Childcare
Advanced Pain Management Holdings, Inc.⁽⁴⁾	Senior loan		L + 5.00	%		N/A	⁽⁵⁾		02/2018		-		(10	)		-		-
Advanced Pain Management Holdings, Inc.*	Senior loan		L + 5.00	%		6.25	%		02/2018		7,345		7,284			1.1		7,345
Advanced Pain Management Holdings, Inc.⁽⁴⁾	Senior loan		L + 5.00	%		N/A	⁽⁵⁾		02/2018		-		(6	)		-		-
Avatar International, LLC⁽⁴⁾	One Stop		L + 7.50	%		N/A	⁽⁵⁾		09/2016		-		(5	)		-		(64	)
Avatar International, LLC*	One Stop		L + 7.50	%		8.75	%		09/2016		7,603		7,532			1.1		6,995
Avatar International, LLC	One Stop		L + 8.00	%		9.25	%		09/2016		1,640		1,629			0.2		1,525
Certara L.P.⁽⁴⁾	One Stop		L + 6.25	%		N/A	⁽⁵⁾		12/2018		-		(22	)		-		(22	)
Certara L.P.*	One Stop		L + 6.25	%		7.25	%		12/2018		17,740		17,520			2.7		17,518
DDC Center Inc.*	One Stop		L + 6.25	%		9.25	%		10/2014		7,849		7,844			1.2		7,849
DDC Center Inc.	One Stop		L + 6.25	%		N/A	⁽⁵⁾		10/2014		-		-			-		-
Delta Educational Systems*	Senior loan		P + 4.75	%		8.00	%		12/2016		1,762		1,736			0.3		1,762
Dialysis Newco, Inc.⁽⁴⁾	Second Lien		L + 8.50	%		N/A	⁽⁵⁾		02/2021		-		(25	)		-		-
Dialysis Newco, Inc.*	Second Lien		L + 8.50	%		9.75	%		02/2021		23,901		23,310			3.6		23,901
Dialysis Newco, Inc.	Senior loan		L + 4.25	%		5.25	%		08/2020		6,330		6,270			1.0		6,345
Encore Rehabilitation Services, LLC⁽⁴⁾	One Stop		L + 6.25	%		N/A	⁽⁵⁾		06/2017		-		(11	)		-		-
Encore Rehabilitation Services, LLC	One Stop		L + 6.25	%		7.50	%		06/2017		5,066		4,970			0.8		5,066
G & H Wire Company, Inc.⁽⁴⁾	Senior loan		L + 5.50	%		N/A	⁽⁵⁾		11/2016		-		(8	)		-		-
G & H Wire Company, Inc.*	Senior loan		L + 5.50	%		7.00	%		11/2016		8,497		8,403			1.3		8,497
Healogics, Inc.*	Second Lien		L + 8.00	%		9.25	%		02/2020		16,454		16,310			2.5		16,824
Hospitalists Management Group, LLC	Senior loan		P + 4.00	%		7.06	%		05/2017		837		828			0.1		764
Hospitalists Management Group, LLC	Senior loan		L + 5.00	%		6.50	%		05/2017		3,694		3,634			0.5		3,398
Hospitalists Management Group, LLC	Senior loan		L + 5.00	%		6.51	%		05/2017		435		430			0.1		400
IntegraMed America, Inc.⁽⁴⁾	One Stop		L + 7.25	%		N/A	⁽⁵⁾		09/2017		-		(14	)		-		-
IntegraMed America, Inc.*	One Stop		L + 7.25	%		8.50	%		09/2017		14,420		14,177			2.2		14,420
Maverick Healthcare Group, LLC*	Senior loan		L + 5.50	%		7.25	%		12/2016		2,019		2,003			0.3		2,019
NeuroTherm, Inc.	Senior loan		L + 5.00	%		6.50	%		02/2016		23		19			-		23
NeuroTherm, Inc.*	Senior loan		L + 5.00	%		6.50	%		02/2016		1,298		1,286			0.2		1,298
Northwestern Management Services, LLC*	Senior loan		L + 5.25	%		6.50	%		10/2017		48		35			-		48
Northwestern Management Services, LLC	Senior loan		L + 5.25	%		6.50	%		10/2017		4,019		3,955			0.6		4,019
Northwestern Management Services, LLC⁽⁴⁾	Senior loan		L + 5.25	%		N/A	⁽⁵⁾		10/2017		-		(4	)		-		-
Pentec Acquisition Sub, Inc.⁽⁴⁾	Senior loan		L + 5.25	%		N/A	⁽⁵⁾		05/2017		-		(3	)		-		-
Pentec Acquisition Sub, Inc.*	Senior loan		L + 5.25	%		6.50	%		05/2018		1,868		1,841			0.3		1,868
Precision Dermatology, Inc.⁽⁴⁾	One Stop		L + 6.00	%		N/A	⁽⁵⁾		09/2018		-		(6	)		-		(3	)
Precision Dermatology, Inc.	One Stop		L + 6.00	%		7.25	%		09/2018		10,042		9,947			1.5		9,991
Reliant Pro ReHab, LLC	Senior loan		P + 3.75	%		7.00	%		06/2016		276		270			-		276
Reliant Pro ReHab, LLC*	Senior loan		L + 4.75	%		6.00	%		06/2016		3,361		3,332			0.5		3,361
Reliant Pro ReHab, LLC	Senior loan		L + 4.75	%		6.00	%		06/2016		932		927			0.1		932
Renaissance Pharma (U.S.) Holdings Inc.⁽⁴⁾	Senior loan		L + 5.25	%		N/A	⁽⁵⁾		05/2018		-		(4	)		-		-
Renaissance Pharma (U.S.) Holdings Inc.*	Senior loan		L + 5.25	%		6.75	%		05/2018		4,435		4,382			0.7		4,435
Southern Anesthesia and Surgical⁽⁴⁾	One Stop		L + 7.00	%		N/A	⁽⁵⁾		11/2017		-		(12	)		-		-
Southern Anesthesia and Surgical	One Stop		L + 7.00	%		8.25	%		11/2017		6,186		6,067			0.9		6,186
Surgical Information Systems, LLC	Senior loan		L + 3.00	%		4.01	%		09/2018		1,704		1,704			0.3		1,704
WIL Research Company, Inc.*	Senior loan		L + 4.50	%		5.75	%		02/2018		782		774			0.1		770
Young Innovations, Inc.⁽⁴⁾	Senior loan		L + 4.50	%		N/A	⁽⁵⁾		01/2018		-		(2	)		-		-
Young Innovations, Inc.	Senior loan		L + 4.50	%		5.75	%		01/2019		4,393		4,365			0.7		4,393
											164,959		162,652			24.9		163,843

See Notes to Consolidated Financial Statements.

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (Continued)

December 31, 2013

(In thousands)

		Spread													Percentage
	Investment	Above			Interest			Maturity		Principal					of Total		Fair
	Type	Index ⁽¹⁾			Rate⁽²⁾			Date		Amount		Cost			Net Assets		Value
Home and Office Furnishings,
Housewares, and Durable Consumer
Plano Molding Company, LLC	Senior loan		L + 4.25	%		5.25	%		10/2018		2,022		2,007			0.3		2,007
WII Components, Inc.*	Senior loan		L + 4.75	%		6.25	%		07/2016		1,616		1,604			0.2		1,616
WII Components, Inc.	Senior loan		P + 3.75	%		7.00	%		07/2016		7		6			-		7
Zenith Products Corporation	One Stop		P + 1.75	%		5.00	%		09/2013		29		29			-		19
Zenith Products Corporation*	One Stop		P + 3.50	%		6.75	%		09/2013		3,684		3,684			0.4		2,395
											7,358		7,330			0.9		6,044
Insurance
AssuredPartners Capital, Inc.*	Senior loan		L + 4.50	%		5.75	%		12/2018		2,371		2,353			0.4		2,371
AssuredPartners Capital, Inc.	Senior loan		L + 4.75	%		6.00	%		06/2019		172		168			-		172
AssuredPartners Capital, Inc.⁽⁴⁾	Senior loan		L + 4.75	%		N/A	⁽⁵⁾		12/2019		-		(21	)		-		-
Captive Resources Midco, LLC ⁽⁴⁾	Senior loan		L + 5.50	%		N/A	⁽⁵⁾		10/2017		-		(3	)		-		-
Captive Resources Midco, LLC*	Senior loan		P + 4.50	%		7.75	%		10/2018		3,543		3,515			0.5		3,543
Evolution1, Inc.*	Senior loan		L + 4.75	%		6.25	%		06/2016		4,549		4,515			0.7		4,549
Evolution1, Inc.	Senior loan		P + 3.75	%		7.00	%		06/2016		56		53			-		56
											10,691		10,580			1.6		10,691
Investment Funds and Vehicles
Senior Loan Fund LLC ⁽⁷⁾	Investment in SLF		L + 4.00	%		4.18	%		05/2020		28,356		28,356			4.2		27,871
											28,356		28,356			4.2		27,871
Leisure, Amusement, Motion Pictures and Entertainment
Competitor Group, Inc.	One Stop		P + 6.75	%		9.76	%		11/2018		884		871			0.1		743
Competitor Group, Inc.*	One Stop		L + 7.75	%		9.00% cash/1.00% PIK			11/2018		12,807		12,624			1.7		11,526
Octane Fitness, LLC⁽⁴⁾	One Stop		L + 5.25	%		N/A	⁽⁵⁾		10/2018		-		(4	)		-		(4	)
Octane Fitness, LLC	One Stop		L + 5.25	%		6.50	%		10/2018		8,220		8,181			1.2		8,179
Pride Manufacturing Company, LLC*	Senior loan		L + 6.00	%		7.75	%		11/2015		571		566			0.1		571
Service Companies, The	Senior loan		L + 6.50	%		N/A	⁽⁵⁾		03/2014		-		-			-		-
Service Companies, The*	Senior loan		L + 6.50	%		9.00	%		03/2014		6,290		6,282			1.0		6,290
Starplex Operating, L.L.C.	One Stop		L + 7.50	%		9.00	%		12/2017		1,077		1,061			0.2		1,077
Starplex Operating, L.L.C.*	One Stop		L + 7.50	%		9.00	%		12/2017		17,388		17,143			2.6		17,388
Titan Fitness, LLC ⁽⁴⁾	One Stop		L + 6.50	%		N/A	⁽⁵⁾		09/2019		-		(25	)		-		(17	)
Titan Fitness, LLC*	One Stop		L + 6.50	%		7.75	%		09/2019		13,706		13,401			2.1		13,569
Titan Fitness, LLC ⁽⁴⁾	One Stop		L + 6.50	%		N/A	⁽⁵⁾		09/2019		-		(25	)		-		(17	)
											60,943		60,075			9.0		59,305
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc.*	One Stop		P + 4.75	%		8.00	%		10/2017		201		196			-		201
Benetech, Inc.*	One Stop		L + 6.00	%		7.25	%		10/2017		5,434		5,413			0.8		5,434
											5,635		5,609			0.8		5,635
Oil and Gas
Drilling Info, Inc.^{(4), (8)}	One Stop		L + 5.00	%		N/A	⁽⁵⁾		06/2018		-		(5	)		-		-
Drilling Info, Inc.^{(4), (8)}	One Stop		L + 5.00	%		6.00	%		06/2018		408		404			0.1		408
Drilling Info, Inc.^{(4), (8)}	One Stop		L + 5.00	%		6.00	%		06/2018		952		943			0.1		952
											1,360		1,342			0.2		1,360
Personal and Non-Durable Consumer Products
Hygenic Corporation, The⁽⁴⁾	Senior loan		L + 4.50	%		N/A	⁽⁵⁾		10/2017		-		(3	)		-		-
Hygenic Corporation, The*	Senior loan		L + 4.50	%		5.75	%		10/2018		3,455		3,417			0.5		3,455
Massage Envy, LLC⁽⁴⁾	One Stop		L + 7.25	%		N/A	⁽⁵⁾		09/2018		-		(15	)		-		-
Massage Envy, LLC	One Stop		L + 7.25	%		8.50	%		09/2018		16,527		16,203			2.5		16,527
Rug Doctor LLC	Senior loan		P + 4.25	%		7.50	%		12/2016		217		205			-		204
Rug Doctor LLC*	Senior loan		L + 5.25	%		6.25	%		12/2016		5,574		5,519			0.9		5,519
Team Technologies Acquisition Company⁽⁴⁾	Senior loan		L + 4.75	%		N/A	⁽⁵⁾		12/2017		-		(3	)		-		-
Team Technologies Acquisition Company	Senior loan		L + 4.75	%		6.00	%		12/2017		3,510		3,483			0.5		3,510