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 June 30, 2014

 

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.)

 

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  o  No þ

 

As of August 7, 2014, the Registrant had 47,065,030 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 June 30, 2014 (unaudited) and September 30, 2013 3
     
  Consolidated Statements of Operations for the three and nine months ended June 30, 2014 (unaudited) and 2013 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the nine months ended June 30, 2014 (unaudited) and 2013 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the nine months ended June 30, 2014 (unaudited) and 2013 (unaudited) 6
     
  Consolidated Schedules of Investments as of June 30, 2014 (unaudited) and September 30, 2013 7
     
  Notes to Consolidated Financial Statements (unaudited) 23
     
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 54
     
Item 3. Quantitative And Qualitative Disclosures About Market Risk 83
     
Item 4. Controls and Procedures 84
     
Part II.  Other Information  
     
Item 1. Legal Proceedings 85
     
Item 1A. Risk Factors 85
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 85
     
Item 3. Defaults Upon Senior Securities 85
     
Item 4. Mine Safety Disclosures 85
     
Item 5. Other Information 85
     
Item 6.   Exhibits 86

 

2
 

  

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(In thousands, except share and per share data)

 

   June 30, 2014   September 30, 2013 
   (unaudited)     
Assets          
Investments, at fair value          
Non-controlled/non-affiliate company investments  $1,287,616   $1,011,586 
Non-controlled affiliate company investments   2,877    8,225 
Controlled affiliate company investments   34,397    4,834 
Total investments, at fair value (cost of $1,309,706 and $1,017,961, respectively)   1,324,890    1,024,645 
Cash and cash equivalents   11,392    16,309 
Restricted cash and cash equivalents   109,818    38,408 
Interest receivable   5,222    4,316 
Deferred financing costs   10,514    7,742 
Other assets   277    236 
Total Assets  $1,462,113   $1,091,656 
           
Liabilities          
Debt  $703,300   $412,100 
Secured borrowings, at fair value (proceeds of $20,064 and $8,683, respectively)   20,264    8,809 
Interest payable   3,689    1,277 
Management and incentive fees payable   5,897    5,579 
Payable for open trades   -    3,677 
Accounts payable and accrued expenses   2,140    1,978 
Accrued trustee fees   49    - 
Total Liabilities   735,339    433,420 
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 June 30, 2014 and September 30, 2013   -    - 
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 47,065,030 and 43,282,932 shares issued and outstanding as of June 30, 2014 and September 30, 2013, respectively   47    43 
Paid in capital in excess of par   718,760    652,669 
Undistributed net investment income   1,647    2,725 
Net unrealized appreciation (depreciation) on investments, derivative instruments and secured borrowings   17,652    9,225 
Net realized gain (loss) on investments and derivative instruments   (11,332)   (6,426)
Total Net Assets   726,774    658,236 
Total Liabilities and Total Net Assets  $1,462,113   $1,091,656 
           
Number of common shares outstanding   47,065,030    43,282,932 
Net asset value per common share  $15.44   $15.21 

 

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 June 30,   Nine months ended June 30, 
   2014   2013   2014   2013 
Investment income                    
From non-controlled/non-affiliate company investments:                    
Interest income  $25,441   $20,453   $73,935   $56,339 
Dividend income   952    1,081    1,230    1,827 
Fee income   1,042    579    1,976    2,328 
Total investment income from non-controlled/non-affiliate company investments   27,435    22,113    77,141    60,494 
                     
From non-controlled affiliate company investments:                    
Interest income   -    155    225    463 
Fee income   -    15    171    15 
Total investment income from non-controlled affiliate company investments   -    155    396    463 
                     
From controlled affiliate company investments:                    
Interest income   594    -    1,331    - 
Total investment income from controlled affiliate company investments   594    -    1,331    - 
                     
Total investment income   28,029    22,268    78,868    60,957 
                     
Expenses                    
Interest and other debt financing expenses   5,609    2,967    14,241    9,254 
Base management fee   4,394    3,114    12,403    8,268 
Incentive fee   1,607    2,785    6,295    7,647 
Professional fees   578    534    1,876    1,540 
Administrative service fee   655    715    1,979    1,873 
General and administrative expenses   113    153    389    404 
                     
Total expenses   12,956    10,268    37,183    28,986 
                     
Net investment income   15,073    12,000    41,685    31,971 
                     
Net gain (loss) on investments and secured borrowings                    
Net realized gains (losses) on investments:                    
Non-controlled/non-affiliate company investments   1    (77)   (4,906)   18 
Net realized gains (losses) on investments:   1    (77)   (4,906)   18 
                     
Net unrealized appreciation (depreciation) on investments:                    
Non-controlled/non-affiliate company investments   989    1,081    7,775    2,576 
Non-controlled affiliate company investments   (2)   (347)   272    (338)
Controlled affiliate company investments   205    -    454    - 
Net unrealized appreciation (depreciation) on investments   1,192    734    8,501    2,238 
                     
Net change in unrealized (appreciation) depreciation on secured borrowings   14    -    (74)   - 
                     
Net gain (loss) on investments and secured borrowings   1,207    657    3,521    2,256 
                     
Net increase in net assets resulting from operations  $16,280   $12,657   $45,206   $34,227 
                     
Per Common Share Data                    
Basic and diluted earnings per common share  $0.35   $0.34   $1.01   $1.05 
Dividends and distributions declared per common share  $0.32   $0.32   $0.96   $0.96 
Basic and diluted weighted average common shares outstanding   46,985,908    37,118,379    44,673,591    32,511,415 

 

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
(Depreciation) on
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)   14,016,382    14    223,404    -    -    -    223,418 
Net increase in net assets resulting from operations   -    -    -    31,971    2,238    18    34,227 
Distributions to stockholders:                                   
Stock issued in connection with dividend reinvestment plan   87,322    -    1,385    -    -    -    1,385 
Dividends and distributions   -    -    -    (32,661)   -    -    (32,661)
Balance at June 30, 2013   39,791,805   $40   $600,352   $(343)  $7,975   $(6,526)  $601,498 
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 (2)   3,666,855    4    64,102    -    -    -    64,106 
Net increase in net assets resulting from operations   -    -    -    41,685    8,427    (4,906)   45,206 
Distributions to stockholders:                                   
Stock issued in connection with dividend reinvestment plan   115,243    -    1,989    -    -    -    1,989 
Dividends and distributions   -    -    -    (42,763)   -    -    (42,763)
Balance at June 30, 2014   47,065,030   $47   $718,760   $1,647   $17,652   $(11,332)  $726,774 

 

 

(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. 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. On May 7, 2013, Golub Capital BDC, Inc. priced a public offering of 6,000,000 shares of its common stock at a public offering prices of $17.47 per share.

 

(2) On March 18, 2014, Golub Capital BDC, Inc. priced a public offering of 3,500,000 shares of its common stock at a public offering price of $18.05 per share. On April 23, 2014, Golub Capital BDC, Inc. sold an additional 166,855 shares of its common stock at a public offering price of $18.05 per share pursuant to the underwriters’ partial exercise of the option granted in connection with the public offering in March 2014.

 

See Notes to Consolidated Financial Statements.

 

5
 

  

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)

(In thousands)

 

   Nine Months Ended June 30, 
   2014   2013 
Cash flows from operating activities          
Net increase in net assets resulting from operations  $45,206   $34,227 
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   2,026    1,444 
Accretion of discounts and amortization of premiums   (5,451)   (6,104)
Net realized loss (gain) on investments   4,906    (18)
Net change in unrealized (appreciation) depreciation on investments   (8,501)   (2,238)
Net change in unrealized appreciation (depreciation) on secured borrowings   74    - 
Proceeds from (fundings of) revolving loans, net   2,363    (8,155)
Fundings of investments   (580,522)   (554,022)
Proceeds from principal payments and sales of portfolio investments   286,778    276,506 
PIK interest   251    (851)
Changes in operating assets and liabilities:          
Interest receivable   (906)   (1,614)
Other assets   (41)   7 
Interest payable   2,412    1,035 
Management and incentive fees payable   318    1,605 
Payable for open trades   (3,677)   - 
Accounts payable and accrued expenses   162    1,152 
Accrued trustee fees   49    - 
Net cash (used in) provided by operating activities   (254,553)   (257,026)
           
Cash flows from investing activities          
Net change in restricted cash and cash equivalents   (71,410)   15,347 
Net cash (used in) provided by investing activities   (71,410)   15,347 
           
Cash flows from financing activities          
Borrowings on debt   759,850    304,350 
Repayments of debt   (468,650)   (252,850)
Capitalized debt financing costs   (4,798)   (2,918)
Proceeds from secured borrowings   26,082    - 
Repayments on secured borrowings   (14,770)   - 
Proceeds from shares sold, net of underwriting costs   64,170    224,065 
Offering costs paid   (64)   (647)
Dividends and distributions paid   (40,774)   (31,276)
Net cash (used in) provided by financing activities   321,046    240,724 
           
Net change in cash and cash equivalents   (4,917)   (955)
           
Cash and cash equivalents, beginning of period   16,309    13,891 
           
Cash and cash equivalents, end of period  $11,392   $12,936 
           
Supplemental information:          
Cash paid during the period for interest  $9,024   $6,775 
Dividends and distributions declared during the period  $42,763   $32,661 

 

See Notes to Consolidated Financial Statements.

 

6
 

   

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited)
June 30, 2014
(In thousands)

  

      Spread                 Percentage     
   Investment  Above  Interest   Maturity  Principal / Par       of   Fair 
   Type  Index (1)  Rate(2)   Date  Amount   Cost   Net Assets   Value 
Investments                                 
United States                                  
Debt investments                                  
Aerospace and Defense                                  
ILC Dover, LP  One stop  P + 4.50%   7.75%  03/2019  $360   $352    -%  $351 
ILC Dover, LP^  One stop  L + 5.50%   6.50%  03/2020   18,713    18,579    2.6    18,572 
NTS Technical Systems  One stop  L + 6.00%   7.25%  11/2018   314    284    -    298 
NTS Technical Systems*^  One stop  L + 6.00%   7.25%  11/2018   18,918    18,606    2.6    18,729 
NTS Technical Systems(3)  One stop  L + 6.00%   N/A(4)  11/2018   -    (63)   -    (30)
Tresys Technology Holdings, Inc.(3)  One stop  L + 6.75%   N/A(4)  12/2017   -    (7)   -    - 
Tresys Technology Holdings, Inc.  One stop  L + 6.75%   8.00%  12/2017   3,899    3,832    0.3    2,340 
Whitcraft LLC  Subordinated debt  N/A   12.00%  12/2018   1,877    1,856    0.3    1,877 
White Oak Technologies, Inc.(3)  Senior loan  L + 5.00%   N/A(4)  03/2017   -    (7)   -    - 
White Oak Technologies, Inc.*  Senior loan  L + 5.00%   6.25%  03/2017   1,721    1,694    0.2    1,721 
                  45,802    45,126    6.0    43,858 
                                   
Automobile                                  
ABRA, Inc.(3)(5)  One stop  L + 6.00%   N/A(4)  05/2018   -    (16)   -    - 
ABRA, Inc.*(5)  One stop  L + 6.00%   7.25%  05/2018   31,138    30,885    4.3    31,138 
ABRA, Inc.(5)  One stop  L + 6.00%   7.25%  05/2018   5,166    5,135    0.7    5,166 
ABRA, Inc.(5)  One stop  L + 6.00%   7.25%  05/2018   6,861    6,818    0.9    6,861 
ABRA, Inc.*^  One stop  L + 7.75%   9.00%  05/2018   4,334    4,271    0.6    4,334 
American Driveline Systems, Inc.  Senior loan  L + 5.50%   7.16%  01/2016   300    296    -    261 
American Driveline Systems, Inc.*  Senior loan  L + 5.50%   7.00%  01/2016   2,804    2,777    0.4    2,524 
K&N Engineering, Inc.(3)  Senior loan  L + 4.50%   N/A(4)  04/2018   -    (6)   -    - 
K&N Engineering, Inc.*^  Senior loan  P + 3.50%   6.75%  04/2018   6,799    6,719    0.9    6,799 
Take 5 Oil Change, L.L.C.(3)  Senior loan  L + 5.25%   N/A(4)  07/2018   -    (3)   -    - 
Take 5 Oil Change, L.L.C.^  Senior loan  L + 4.75%   5.75%  07/2018   2,953    2,935    0.4    2,953 
Tectum Holdings, Inc.*  Senior loan  L + 4.25%   5.25%  09/2018   874    872    0.1    874 
                  61,229    60,683    8.3    60,910 
                                   
Banking                                  
HedgeServ Holding L.P.^  One stop  L + 8.25%   5.25% cash/4.00% PIK   02/2019   17,240    17,082    2.4    17,240 
HedgeServ Holding L.P.(3)  One stop  L + 4.25%   N/A(4)  02/2019   -    (9)   -    - 
Prommis Fin Co.(6)  Senior loan  P + 10.00%   13.25%  06/2015   85    84    -    2 
Prommis Fin Co.*(6)  Senior loan  N/A   2.25% cash/11.5% PIK   06/2015   124    124    -    3 
                  17,449    17,281    2.4    17,245 
Beverage, Food and Tobacco                                  
ABP Corporation(3)  Senior loan  L + 4.75%   N/A(4)  06/2016   -    (3)   -    - 
ABP Corporation*  Senior loan  L + 4.75%   6.00%  06/2016   4,455    4,420    0.6    4,455 
American Importing Company, Inc.^  One stop  P + 4.50%   7.75%  05/2018   14,694    14,543    2.0    14,694 
Ameriqual Group, LLC*  Senior loan  L + 6.00%   6.50% cash/1.00% PIK   03/2016   1,711    1,693    0.2    1,643 
Ameriqual Group, LLC*  Senior loan  L + 7.50%   9.00% cash/1.50% PIK   03/2016   830    825    0.1    685 
ARG IH Corporation (Arby's)^  Senior loan  L + 4.00%   5.00%  11/2020   2,343    2,316    0.3    2,361 
Atkins Nutritionals, Inc.*^  One stop  L + 5.00%   6.25%  01/2019   21,455    21,254    3.0    21,481 
Atkins Nutritionals, Inc.*  One stop  L + 8.50%   9.75%  04/2019   18,997    18,642    2.7    19,281 
C. J. Foods, Inc.  One stop  L + 5.50%   6.50%  05/2019   43    34    -    37 
C. J. Foods, Inc.(3)  One stop  L + 5.50%   N/A(4)  05/2019   -    (13)   -    (9)
C. J. Foods, Inc.  One stop  L + 5.50%   6.50%  05/2019   3,232    3,185    0.4    3,200 
Candy Intermediate Holdings, Inc. (Ferrara Candy)^  Senior loan  L + 6.25%   6.57%  06/2018   4,900    4,784    0.7    4,849 
Diversified Foodservice Supply, Inc.  Senior loan  P + 3.75%   7.00%  12/2018   96    93    -    96 
Diversified Foodservice Supply, Inc.*  Senior loan  L + 4.75%   6.00%  12/2018   4,606    4,565    0.6    4,606 
Firebirds International, LLC  One stop  L + 5.75%   7.00%  05/2018   41    40    -    41 
Firebirds International, LLC*  One stop  L + 5.75%   7.00%  05/2018   905    896    0.1    905 
Firebirds International, LLC  One stop  L + 5.75%   7.00%  05/2018   262    259    -    262 
Firebirds International, LLC(3)  One stop  L + 5.75%   N/A(4)  05/2018   -    (3)   -    - 
First Watch Restaurants, Inc.(3)  One stop  L + 7.50%   N/A(4)  12/2018   -    (25)   -    - 
First Watch Restaurants, Inc.*^  One stop  L + 7.50%   8.75%  12/2018   11,293    11,157    1.6    11,293 
First Watch Restaurants, Inc.*^  One stop  P + 6.50%   9.75%  12/2018   3,107    3,070    0.5    3,107 
First Watch Restaurants, Inc.  One stop  L + 7.50%   8.75%  12/2018   1,750    1,744    0.2    1,750 
IT'SUGAR LLC  Senior loan  L + 7.50%   9.00%  04/2018   7,585    7,467    1.0    7,585 
IT'SUGAR LLC  Subordinated debt  N/A   5.00%  10/2017   1,707    1,707    0.3    2,287 
Julio & Sons Company  One stop  L + 5.50%   6.50%  09/2016   277    270    -    277 

   

See Notes to Consolidated Financial Statements

 

7
 

  

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (Continued)
June 30, 2014
(In thousands)

 

        Spread                         Percentage        
    Investment   Above   Interest     Maturity   Principal / Par           of     Fair  
    Type   Index (1)   Rate(2)     Date   Amount     Cost     Net Assets     Value  
Julio & Sons Company*   One stop   L + 5.50%     6.50 %   09/2016     6,996       6,947       1.0       6,996  
Julio & Sons Company(3)   One stop   L + 5.50%     N/A (4)   09/2016     -       (29 )     -       -  
Northern Brewer, LLC   One stop   P + 9.25%     8.50% cash/4.00% PIK     02/2018     670       658       0.1       535  
Northern Brewer, LLC   One stop   P + 9.25%     8.50% cash/4.00% PIK     02/2018     6,338       6,215       0.7       5,071  
Richelieu Foods, Inc.   Senior loan   P + 4.50%     7.75 %   11/2015     127       121       -       127  
Richelieu Foods, Inc.*   Senior loan   L + 5.50%     7.25 %   11/2015     1,872       1,853       0.3       1,872  
                          120,292       118,685       16.4       119,487  
                                                     
Building and Real Estate                                                    
ITEL Laboratories, Inc.(3)   Senior loan   L + 4.75%     N/A (4)   06/2018     -       (1 )     -       -  
ITEL Laboratories, Inc.*   Senior loan   L + 4.75%     6.00 %   06/2018     758       750       0.1       758  
                          758       749       0.1       758  
                                                     
Cargo Transport                                                    
RP Crown Parent (RedPrairie Corp)*   Senior loan   L + 5.00%     6.00 %   12/2018     1,975       1,945       0.3       1,979  
                                                     
Containers, Packaging and Glass                                                    
Fort Dearborn Company*   Senior loan   L + 4.25%     5.25 %   10/2017     26       26       -       26  
Fort Dearborn Company*^   Senior loan   L + 4.25%     5.25 %   10/2017     522       520       0.1       522  
Fort Dearborn Company*   Senior loan   L + 4.75%     5.75 %   10/2018     102       101       -       102  
Fort Dearborn Company*^   Senior loan   L + 4.75%     5.75 %   10/2018     2,185       2,172       0.3       2,185  
Packaging Coordinators, Inc.*^   Senior loan   L + 4.25%     5.50 %   05/2020     6,759       6,723       0.9       6,759  
Packaging Coordinators, Inc.   Second lien   L + 8.25%     9.50 %   11/2020     29,098       28,330       4.0       29,098  
Packaging Coordinators, Inc.^   Senior loan   L + 4.25%     5.50 %   05/2020     9,286       9,265       1.3       9,286  
                          47,978       47,137       6.6       47,978  
                                                     
Diversified Conglomerate Manufacturing                                                    
Chase Industries, Inc.*   One stop   L + 5.62%     6.87 %   11/2017     13,249       13,097       1.8       13,249  
ICCN Acquisition Corp.(3)   One stop   L + 5.25%     N/A  (4)   03/2019     -       (4 )     -       (3 )
ICCN Acquisition Corp.^   One stop   L + 5.25%     6.25 %   03/2019     4,008       3,942       0.5       3,968  
ICCN Acquisition Corp.(3)   One stop   L + 5.25%     N/A  (4)   03/2019     -       (15 )     -       (11 )
Metal Spinners, Inc.*   Senior loan   L + 7.50%     9.00 %   04/2015     1,309       1,298       0.2       1,309  
Metal Spinners, Inc.*   Senior loan   L + 7.50%     9.00 %   04/2015     2,573       2,554       0.4       2,573  
Onicon Incorporated(3)   One stop   L + 6.75%     N/A (4)   12/2017     -       (11 )     -       -  
Onicon Incorporated   One stop   L + 4.50%     5.50 %   12/2017     3,162       3,117       0.4       3,162  
Pasternack Enterprises, Inc.*   Senior loan   L + 5.00%     6.25 %   12/2017     1,149       1,141       0.2       1,149  
Plex Systems, Inc.(3)   Senior loan   L + 7.50%     N/A (4)   06/2018     -       (26 )     -       -  
Plex Systems, Inc.*^   Senior loan   L + 7.50%     8.75 %   06/2018     18,797       18,404       2.6       18,797  
Sunless Merger Sub, Inc.   Senior loan   P + 4.00%     7.25 %   07/2016     77       76       -       50  
Sunless Merger Sub, Inc.*   Senior loan   L + 5.25%     6.50 %   07/2016     1,847       1,843       0.2       1,293  
TIDI Products, LLC   One stop   L + 6.50%     7.75 %   07/2017     78       66       -       78  
TIDI Products, LLC*   One stop   L + 6.50%     7.75 %   07/2018     12,662       12,459       1.7       12,662  
Vintage Parts, Inc.*   One stop   L + 4.50%     5.75 %   12/2015     4,175       4,142       0.6       4,175  
Vintage Parts, Inc.*   One stop   L + 4.50%     5.75 %   12/2015     58       58       -       58  
Vintage Parts, Inc.*   One stop   L + 4.50%     5.75 %   12/2015     873       877       0.1       873  
                          64,017       63,018       8.7       63,382  
                                                     
Diversified Conglomerate Service                                                    
Aderant North America, Inc.*   Senior loan   L + 4.25%     5.25 %   12/2018     4,220       4,188       0.6       4,220  
Agility Recovery Solutions Inc.(3)   One stop   L + 6.75%     N/A (4)   09/2018     -       (6 )     -       -  
Agility Recovery Solutions Inc.*   One stop   L + 6.75%     8.00 %   09/2018     8,288       8,144       1.1       8,288  
Bomgar Corporation(3)   One stop   L + 6.00%     N/A (4)   05/2019     -       (19 )     -       (20 )
Bomgar Corporation   One stop   L + 6.00%     7.00 %   05/2020     23,539       23,091       3.2       23,303  
Daxko, LLC(3)   One stop   L + 7.75%     N/A (4)   03/2019     -       (25 )     -       (22 )
Daxko, LLC   One stop   L + 7.75%     8.75 %   03/2019     16,840       16,548       2.3       16,671  
Document Technologies, LLC (3)   Senior loan   L + 4.25%     N/A (4)   12/2018     -       (10 )     -       -  
Document Technologies, LLC*^   Senior loan   L + 4.25%     5.50 %   12/2018     6,999       6,945       1.0       6,999  
EAG, INC. (Evans Analytical Group)*   Senior loan   L + 4.00%     5.00 %   07/2017     2,435       2,409       0.3       2,435  
HighJump Acquisition LLC   One stop   L + 7.50%     16.23 %   07/2018     7,089       7,033       1.0       7,089  
Integration Appliance, Inc.   Senior loan   L + 8.25%     9.50 %   09/2018     719       710       0.1       710  
Integration Appliance, Inc.   Senior loan   L + 8.25%     9.50 %   09/2018     5,396       5,281       0.7       5,328  
Integration Appliance, Inc.   Senior loan   L + 8.25%     9.50 %   06/2019     7,914       7,717       1.1       7,815  
Marathon Data Operating Co., LLC (3)   One stop   L + 6.25%     N/A (4)   08/2017     -       (7 )     -       -  
Marathon Data Operating Co., LLC   One stop   L + 6.25%     7.50 %   08/2017     4,606       4,533       0.6       4,606  
Navex Global, Inc.(3)   One stop   L + 5.50%     N/A (4)   12/2016     -       (22 )     -       -  

  

See Notes to Consolidated Financial Statements

 

8
 

  

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (Continued)
June 30, 2014
(In thousands)

 

 

        Spread                         Percentage        
    Investment   Above   Interest     Maturity   Principal / Par           of     Fair  
    Type   Index (1)   Rate(2)     Date   Amount     Cost     Net Assets     Value  
Navex Global, Inc.*   One stop   L + 5.50%     6.50 %   12/2016     19,174       18,810       2.6       19,174  
NetSmart Technologies, Inc.*   One stop   L + 7.54%     8.79 %   12/2017     8,121       8,061       1.1       8,121  
NetSmart Technologies, Inc.   One stop   L + 7.88%     9.13 %   12/2017     642       632       0.1       642  
PC Helps Support, LLC(3)   Senior loan   L + 5.25%     N/A (4)   09/2017     -       (2 )     -       -  
PC Helps Support, LLC   Senior loan   L + 5.25%     6.52 %   09/2017     1,795       1,778       0.2       1,795  
Secure-24, LLC(3)   One stop   L + 6.50%     N/A (4)   08/2017     -       (5 )     -       -  
Secure-24, LLC*   One stop   L + 6.50%     7.75 %   08/2017     10,460       10,260       1.4       10,460  
Secure-24, LLC^   One stop   L + 6.50%     7.75 %   08/2017     1,530       1,509       0.2       1,530  
SoftWriters, Inc.(3)   One stop   L + 5.00%     N/A (4)   05/2019     -       (2 )     -       (2 )
SoftWriters, Inc.(3)   One stop   L + 5.00%     N/A (4)   05/2019     -       (3 )     -       (4 )
SoftWriters, Inc.   One stop   L + 5.00%     6.00 %   05/2019     6,427       6,402       0.9       6,401  
Source Medical Solutions, Inc.   Second lien   L + 8.00%     9.00 %   03/2018     9,294       9,136       1.3       9,294  
Vericlaim, Inc.(3)   Senior loan   L + 4.75%     N/A  (4)   05/2018     -       (3 )     -       -  
Vericlaim, Inc.^   Senior loan   L + 4.75%     6.00 %   05/2018     6,311       6,283       0.9       6,311  
Vericlaim, Inc.*   Senior loan   L + 4.75%     6.00 %   05/2018     367       363       0.1       367  
                          152,166       149,729       20.8       151,511  
                                                     
Electronics                                                    
BeyondTrust Software, Inc.^   One stop   L + 7.62%     8.88 %   12/2019     11,939       11,702       1.6       11,939  
ECI Acquisition Holdings, Inc.(3)   One stop   L + 6.25%     N/A (4)   03/2019     -       (18 )     -       (10 )
ECI Acquisition Holdings, Inc.^   One stop   L + 6.25%     7.25 %   03/2019     22,270       21,878       3.0       22,047  
ECI Acquisition Holdings, Inc.(3)   One stop   L + 6.25%     N/A (4)   03/2019     -       (84 )     -       (48 )
Rogue Wave Holdings, Inc.*^   One stop   L + 8.06%     9.06 %   12/2018     10,613       10,493       1.5       10,613  
Sloan Company, Inc., The   One stop   L + 7.50%     8.75 %   10/2018     267       253       -       267  
Sloan Company, Inc., The*^   One stop   L + 7.50%     8.75 %   10/2018     13,110       12,969       1.8       13,110  
Sparta Systems, Inc.(3)   Senior loan   L + 5.25%     N/A (4)    12/2017     -       (6 )     -       -  
Sparta Systems, Inc.*   Senior loan   L + 5.25%     6.50 %   12/2017     6,327       6,272       0.9       6,327  
Syncsort Incorporated(3)   Senior loan   L + 4.75%     N/A (4)    03/2019     -       (3 )     -       (3 )
Syncsort Incorporated(3)   Senior loan   L + 4.75%     N/A (4)    03/2019     -       (13 )     -       (14 )
Syncsort Incorporated*   Senior loan   L + 4.75%     5.75 %   03/2019     6,158       6,101       0.8       6,097  
Systems Maintenance Services Holding, Inc.^   Senior loan   L + 4.25%     5.25 %   10/2019     2,657       2,645       0.4       2,657  
Taxware, LLC   Second lien   L + 8.50%     9.50 %   10/2019     11,099       10,902       1.5       11,099  
Watchfire Enterprises, Inc.   Second lien   L + 8.00%     9.00 %   10/2021     9,435       9,265       1.3       9,435  
                          93,875       92,356       12.8       93,516  
                                                     
Farming and Agriculture                                                    
AGData, L.P.*^   One stop   L + 6.00%     7.25 %   08/2016     3,691       3,663       0.5       3,691  
                                                     
Finance                                                    
Ascensus, Inc.(3)   One stop   L + 4.00%     N/A (4)    11/2018     -       (17 )     -       -  
Ascensus, Inc.^   One stop   L + 4.00%     5.00 %   12/2019     4,203       4,127       0.6       4,203  
Ascensus, Inc.^   One stop   L + 8.00%     9.00 %   12/2020     6,337       6,134       0.9       6,337  
Pillar Processing LLC*(6)   Senior loan   L + 5.50%     5.72 %   11/2018     702       701       -       210  
Pillar Processing LLC*(6)   Senior loan   N/A     14.50 %   05/2019     2,377       2,368       -       -  
                          13,619       13,313       1.5       10,750  
Grocery                                                    
MyWebGrocer, Inc.(3)   Senior loan   L + 4.75%     N/A (4)    05/2018     -       (12 )     -       -  
MyWebGrocer, Inc.^   Senior loan   L + 8.75%     6.00% cash/4.00% PIK     05/2018     14,271       14,079       2.0       14,271  
Teasdale Quality Foods, Inc.*   Senior loan   L + 4.50%     5.75 %   05/2018     2,681       2,659       0.4       2,681  
                          16,952       16,726       2.4       16,952  
                                                     
Healthcare, Education and Childcare                                                    
Advanced Pain Management Holdings, Inc.(3)   Senior loan   L + 5.00%     N/A (4)    02/2018     -       (8 )     -       -  
Advanced Pain Management Holdings, Inc.*   Senior loan   L + 5.00%     6.25 %   02/2018     7,121       7,068       1.0       7,121  
Advanced Pain Management Holdings, Inc.   Senior loan   L + 5.00%     6.25 %   02/2018     487       481       0.1       487  
Avatar International, LLC(3)   One stop   L + 4.94%     N/A (4)    09/2016     -       (4 )     -       -  
Avatar International, LLC*   One stop   L + 7.89%     6.19% cash/2.95% PIK     09/2016     7,589       7,532       0.9       6,602  
Avatar International, LLC   One stop   L + 7.89%     6.19% cash/2.95% PIK     09/2016     1,637       1,628       0.2       1,424  
Certara L.P.(3)   One stop   L + 6.25%     N/A (4)    12/2018     -       (20 )     -       (13 )
Certara L.P.*^   One stop   L + 6.25%     7.25 %   12/2018     23,006       22,765       3.1       22,834  
Data Innovations LLC   One stop   L + 5.75%     6.75 %   05/2019     8,823       8,631       1.2       8,734  
Delta Educational Systems*   Senior loan   P + 4.75%     8.00 %   12/2016     1,693       1,671       0.2       1,693  
Delta Educational Systems(3)   Senior loan   L + 6.00%     N/A (4)    12/2016     -       -       -       -  
Encore Rehabilitation Services, LLC(3)   One stop   L + 6.00%     N/A (4)    06/2017     -       (9 )     -       -  

   

See Notes to Consolidated Financial Statements

 

9
 

  

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (Continued)
June 30, 2014
(In thousands)

 

        Spread                         Percentage        
    Investment   Above   Interest     Maturity   Principal / Par           of     Fair  
    Type   Index (1)   Rate(2)     Date   Amount     Cost     Net Assets     Value  
Encore Rehabilitation Services, LLC   One stop   L + 6.00%     7.25 %   06/2017     5,001       4,920       0.7       5,001  
G & H Wire Company, Inc.   Senior loan   P + 4.50%     7.75 %   12/2017     179       172       -       179  
G & H Wire Company, Inc.*^   Senior loan   L + 5.75%     6.75 %   12/2017     12,934       12,786       1.8       12,934  
Global Healthcare Exchange, LLC(3)   One stop   L + 9.00%     N/A (4)   03/2020     -       (24 )     -       (25 )
Global Healthcare Exchange, LLC   One stop   L + 9.00%     10.00 %   03/2020     20,087       19,706       2.7       19,886  
GSDM Holdings Corp.   Senior loan   L + 4.25%     5.25 %   06/2019     629       626       0.1       626  
Healogics, Inc.*   Second lien   L + 8.00%     9.25 %   02/2020     16,454       16,322       2.3       16,454  
Hospitalists Management Group, LLC   Senior loan   L + 5.00%     6.77 %   05/2017     910       902       0.1       819  
Hospitalists Management Group, LLC   Senior loan   L + 5.00%     6.51 %   05/2017     3,694       3,643       0.5       3,324  
Hospitalists Management Group, LLC   Senior loan   L + 5.00%     6.50 %   05/2017     430       426       0.1       387  
IntegraMed America, Inc.(3)   One stop   L + 7.25%     N/A (4)   09/2017     -       (12 )     -       (6 )
IntegraMed America, Inc.*^   One stop   L + 7.25%     8.50 %   09/2017     15,626       15,398       2.1       15,509  
Joerns Healthcare, LLC   One stop   L + 5.00%     6.00 %   05/2020     9,819       9,722       1.3       9,782  
Maverick Healthcare Group, LLC*   Senior loan   L + 5.50%     7.25 %   12/2016     1,999       1,971       0.3       1,899  
NeuroTherm, Inc.   Senior loan   P + 3.50%     6.75 %   02/2016     23       18       -       23  
NeuroTherm, Inc.*^   Senior loan   L + 4.50%     5.75 %   02/2016     2,183       2,162       0.3       2,183  
Northwestern Management Services, LLC(3)   Senior loan   L + 5.25%     N/A (4)   10/2017     -       (10 )     -       -  
Northwestern Management Services, LLC*   Senior loan   L + 5.25%     6.50 %   10/2017     3,976       3,921       0.5       3,976  
Northwestern Management Services, LLC   Senior loan   L + 5.25%     6.50 %   10/2017     47       43       -       47  
Onsite Holding Corp.(3)   One stop   L + 5.25%     N/A (4)   06/2020     -       (44 )     -       (25 )
Onsite Holding Corp.*^   One stop   L + 5.25%     6.25 %   06/2020     26,921       26,686       3.7       26,786  
Paradigm Management Services, LLC^   Senior loan   L + 4.50%     5.51 %   01/2019     1,920       1,903       0.3       1,920  
Pentec Acquisition Sub, Inc.(3)   Senior loan   L + 5.25%     N/A (4)   05/2017     -       (2 )     -       -  
Pentec Acquisition Sub, Inc.*   Senior loan   L + 5.25%     6.50 %   05/2018     1,815       1,792       0.2       1,815  
Precision Dermatology, Inc.(3)   One stop   L + 6.00%     N/A (4)   09/2018     -       (5 )     -       -  
Precision Dermatology, Inc.   One stop   L + 6.00%     7.25 %   09/2018     9,991       9,907       1.4       10,092  
Reliant Pro ReHab, LLC(3)   Senior loan   L + 4.75%     N/A (4)   06/2016     -       (7 )     -       -  
Reliant Pro ReHab, LLC*^   Senior loan   L + 5.00%     6.00 %   06/2017     7,652       7,588       1.1       7,652  
Renaissance Pharma (U.S.) Holdings Inc.   Senior loan   P + 3.00%     6.25 %   05/2018     97       94       -       97  
Renaissance Pharma (U.S.) Holdings Inc.*^   Senior loan   L + 4.00%     5.03 %   05/2018     4,259       4,203       0.6       4,259  
Southern Anesthesia and Surgical(3)   One stop   L + 5.50%     N/A (4)   11/2017     -       (11 )     -       -  
Southern Anesthesia and Surgical   One stop   L + 5.50%     6.50 %   11/2017     6,027       5,911       0.8       6,027  
Southern Anesthesia and Surgical(3)   One stop   L + 5.50%     N/A (4)   11/2017     -       (43 )     -       -  
Surgical Information Systems, LLC^   Senior loan   L + 3.00%     4.01 %   09/2018     2,062       2,057       0.3       2,062  
WIL Research Company, Inc.*   Senior loan   L + 4.50%     5.75 %   02/2018     778       771       0.1       759  
Young Innovations, Inc.(3)   Senior loan   L + 4.25%     N/A (4)   01/2018     -       (3 )     -       -  
Young Innovations, Inc.*^   Senior loan   L + 4.25%     5.29 %   01/2019     5,457       5,423       0.8       5,457  
                          211,326       208,647       28.8       208,781  
                                                     
Home and Office Furnishings,                                                    
Housewares, and Durable Consumer                                                    
Plano Molding Company, LLC^   Senior loan   L + 4.25%     5.25 %   10/2018     1,997       1,984       0.3       1,997  
WII Components, Inc.*   Senior loan   L + 4.75%     6.25 %   07/2016     1,513       1,504       0.2       1,513  
WII Components, Inc.   Senior loan   P + 3.75%     7.00 %   07/2016     10       9       -       10  
Zenith Products Corporation   One stop   P + 1.75%     5.00 %   09/2013     29       29       -       15  
Zenith Products Corporation*   One stop   P + 3.50%     6.75 %   09/2013     3,684       3,684       0.3       1,842  
                          7,233       7,210       0.8       5,377  
                                                     
Insurance                                                    
Captive Resources Midco, LLC (3)   One stop   L + 5.00%     N/A (4)   01/2019     -       (16 )     -       -  
Captive Resources Midco, LLC*^   One stop   L + 5.00%     6.50 %   01/2019     20,047       19,859       2.8       20,047  
Evolution1, Inc.*   Senior loan   P + 3.75%     7.00 %   06/2016     4,461       4,434       0.6       4,461  
Evolution1, Inc.   Senior loan   P + 3.75%     7.00 %   06/2016     56       54       -       56  
                          24,564       24,331       3.4       24,564  
                                                     
Investment Funds and Vehicles                                                    
Senior Loan Fund LLC (7)(8)   Subordinated debt   L + 8.00%     8.15 %   05/2020     29,610       29,610       4.1       29,610  
                                                     
Leisure, Amusement, Motion Pictures and Entertainment                                                    
Competitor Group, Inc.   One stop   P + 6.75%     9.76 %   11/2018     884       873       0.1       716  
Competitor Group, Inc.*   One stop   L + 8.75%     9.00% cash/1.00% PIK     11/2018     12,797       12,634       1.5       11,134  
Octane Fitness, LLC(3)   One stop   L + 5.25%     N/A (4)   10/2018     -       (4 )     -       -  
Octane Fitness, LLC*   One stop   L + 5.25%     6.50 %   10/2018     8,096       8,061       1.1       8,096  

   

See Notes to Consolidated Financial Statements

 

10
 

  

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (Continued)
June 30, 2014
(In thousands)

 

        Spread                         Percentage        
    Investment   Above   Interest     Maturity   Principal / Par           of     Fair  
    Type   Index (1)   Rate(2)     Date   Amount     Cost     Net Assets     Value  
Pride Manufacturing Company, LLC*   Senior loan   L + 6.00%     7.75 %   11/2015     513       510       0.1       513  
Self Esteem Brands, LLC(3)   Senior loan   L + 4.00%     N/A (4)   02/2020     -       (5 )     -       (5 )
Self Esteem Brands, LLC^   Senior loan   L + 4.00%     5.25 %   02/2020     7,707       7,662       1.1       7,659  
Starplex Operating, L.L.C.   One stop   L + 7.50%     9.00 %   12/2017     958       943       0.1       958  
Starplex Operating, L.L.C.*^   One stop   L + 7.50%     9.00 %   12/2017     17,170       16,956       2.4       17,170  
Titan Fitness, LLC (3)   One stop   L + 6.50%     N/A (4)   09/2019     -       (23 )     -       -  
Titan Fitness, LLC*   One stop   L + 6.50%     7.75 %   09/2019     13,637       13,360       1.9       13,637  
Titan Fitness, LLC (3)   One stop   L + 6.50%     N/A (4)   09/2019     -       (23 )     -       -  
                          61,762       60,944       8.3       59,878  
                                                     
Mining, Steel, Iron and Non-Precious Metals                                                    
Benetech, Inc.   One stop   P + 7.75%     11.00 %   10/2017     273       264       -       273  
Benetech, Inc.*   One stop   L + 9.00%     10.25 %   10/2017     5,191       5,149       0.7       5,191  
                          5,464       5,413       0.7       5,464  
                                                     
Oil and Gas                                                    
Drilling Info, Inc.(3)(5)   One stop   L + 5.00%     N/A (4)   06/2018     -       (1 )     -       -  
Drilling Info, Inc.^(5)   One stop   L + 5.00%     6.00 %   06/2018     1,342       1,331       0.2       1,342  
Drilling Info, Inc.(3)(5)   One stop   L + 5.00%     N/A (4)   06/2018     -       (4 )     -       -  
                          1,342       1,326       0.2       1,342  
                                                     
Personal and Non-Durable Consumer Products                                                    
Hygenic Corporation, The   Senior loan   P + 3.75%     6.80 %   10/2017     153       150       -       153  
Hygenic Corporation, The*^   Senior loan   L + 4.75%     6.00 %   10/2018     4,549       4,502       0.6       4,549  
Massage Envy, LLC(3)   One stop   L + 7.25%     N/A (4)   09/2018     -       (13 )     -       -  
Massage Envy, LLC*   One stop   L + 7.25%     8.50 %   09/2018     15,999       15,718       2.2       15,999  
Rug Doctor LLC   Senior loan   L + 5.25%     6.25 %   12/2016     465       454       0.1       465  
Rug Doctor LLC*   Senior loan   L + 5.25%     6.25 %   12/2016     5,435       5,390       0.7       5,435  
Team Technologies Acquisition Company^   Senior loan   L + 5.00%     6.25 %   12/2017     4,843       4,800       0.7       4,843  
Team Technologies Acquisition Company(3)   Senior loan   P + 3.75%     7.00 %   12/2017     -       (2 )     -       -  
                          31,444       30,999       4.3       31,444  
                                                     
Personal, Food and Miscellaneous Services                                                    
Affordable Care Inc.(3)   Senior loan   L + 4.75%     N/A (4)   12/2017     -       (2 )     -       -  
Affordable Care Inc.^   Senior loan   L + 4.75%     6.00 %   12/2018     3,356       3,331       0.5       3,356  
El Pollo Loco Inc^   Senior loan   L + 4.25%     5.25 %   10/2018     5,162       5,117       0.7       5,201  
Focus Brands Inc.   Second lien   L + 9.00%     10.25 %   08/2018     11,195       11,085       1.6       11,404  
National Veterinary Associates, Inc.   Senior loan   L + 5.00%     6.25 %   12/2017     72       71       -       72  
National Veterinary Associates, Inc.^   Senior loan   L + 5.00%     6.25 %   12/2017     5,976       5,940       0.8       5,976  
National Veterinary Associates, Inc.^   Senior loan   L + 5.00%     6.25 %   12/2017     1,671       1,661       0.2       1,671  
PMI Holdings, Inc.(3)   One stop   L + 4.50%     N/A (4)   10/2018     -       (9 )     -       -  
PMI Holdings, Inc.*^   One stop   L + 4.50%     5.50 %   10/2018     22,366       22,272       3.1       22,366  
Vetcor Merger Sub LLC   One stop   L + 6.50%     7.75 %   12/2017     199       193       -       199  
Vetcor Merger Sub LLC*^   One stop   L + 6.50%     7.75 %   12/2017     5,870       5,824       0.8       5,870  
Vetcor Merger Sub LLC(3)   One stop   L + 6.50%     N/A (4)   12/2017     -       (7 )     -       -  
Vetcor Merger Sub LLC^   One stop   L + 6.50%     7.75 %   12/2017     373       373       0.1       373  
Vetcor Merger Sub LLC^   One stop   L + 6.50%     7.75 %   12/2017     575       575       0.1       575  
Vetcor Merger Sub LLC^   One stop   L + 6.50%     7.75 %   12/2017     385       385       0.1       385  
                          57,200       56,809       8.0       57,448  
                                                     
Printing and Publishing                                                    
Market Track, LLC(3)   One stop   L + 6.00%     N/A (4)   10/2019     -       (19 )     -       -  
Market Track, LLC*^   One stop   L + 6.00%     7.25 %   10/2019     29,344       29,084       4.0       29,344  
Market Track, LLC(3)   One stop   L + 6.00%     N/A (4)   10/2019     -       (19 )     -       -  
                          29,344       29,046       4.0       29,344  
                                                     
Retail Stores                                                    
Benihana, Inc.   One stop   P + 4.25%     7.50 %   07/2018     274       238       -       274  
Benihana, Inc.*^   One stop   L + 5.50%     6.75 %   01/2019     14,000       13,637       1.9       14,000  
Boot Barn, Inc.*^   One stop   L + 5.75%     7.00 %   05/2019     24,491       24,188       3.4       24,491  
Boot Barn, Inc.*   One stop   L + 5.75%     7.00 %   05/2019     7,745       7,672       1.1       7,669  
Capital Vision Services, LLC(3)   One stop   L + 7.25%     N/A (4)   12/2017     -       (10 )     -       -  
Capital Vision Services, LLC*^   One stop   L + 7.25%     8.50 %   12/2017     15,440       15,294       2.1       15,440  
Capital Vision Services, LLC^   One stop   L + 7.25%     8.50 %   12/2017     1,238       1,225       0.2       1,238  
Capital Vision Services, LLC   One stop   L + 7.25%     8.50 %   12/2017     731       725       0.1       731  
DTLR, Inc.*^   One stop   L + 8.00%     11.00 %   12/2015     16,108       16,025       2.2       16,108  
Express Oil Change, LLC   Senior loan   L + 4.75%     6.17 %   12/2017     64       62       -       64  

  

See Notes to Consolidated Financial Statements

 

11
 

  

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (Continued)
June 30, 2014
(In thousands)

 

        Spread                         Percentage        
    Investment   Above   Interest     Maturity   Principal / Par           of     Fair  
    Type   Index (1)   Rate(2)     Date   Amount     Cost     Net Assets     Value  
Express Oil Change, LLC*   Senior loan   P + 3.50%     6.75 %   12/2017     1,747       1,735       0.2       1,747  
Express Oil Change, LLC   Senior loan   P + 3.50%     6.75 %   12/2017     112       111       -       112  
Floor & Decor Outlets of America, Inc.*^   One stop   L + 6.50%     7.75 %   05/2019     11,272       11,158       1.6       11,272  
Marshall Retail Group, LLC, The(3)   Senior loan   L + 6.00%     N/A (4)   10/2016     -       (9 )     -       -  
Marshall Retail Group, LLC, The*^   Senior loan   L + 6.00%     7.50 %   10/2016     9,105       9,012       1.3       9,105  
Paper Source, Inc.(3)   One stop   L + 6.25%     N/A (4)   09/2018     -       (11 )     -       -  
Paper Source, Inc.*^   One stop   L + 6.25%     7.25 %   09/2018     12,607       12,501       1.7       12,607  
Restaurant Holding Company, LLC   Senior loan   L + 7.75%     8.75 %   02/2019     4,989       4,942       0.7       4,970  
Rubio's Restaurants, Inc*^   Senior loan   L + 4.75%     6.00 %   11/2018     9,400       9,393       1.3       9,400  
Sneaker Villa, Inc.   One stop   P + 7.00%     11.50 %   12/2017     251       238       -       251  
Sneaker Villa, Inc.   One stop   L + 8.50%     10.00 %   12/2017     4,462       4,384       0.6       4,462  
Sneaker Villa, Inc.^   One stop   L + 8.50%     10.00 %   12/2017     627       620       0.1       627  
Sneaker Villa, Inc.^   One stop   L + 8.50%     10.00 %   12/2017     1,245       1,234       0.2       1,245  
Sneaker Villa, Inc.(3)   One stop   L + 8.50%     N/A (4)   12/2017     -       (11 )     -       -  
Specialty Catalog Corp.(3)   One stop   L + 6.00%     N/A (4)   07/2017     -       (5 )     -       -  
Specialty Catalog Corp.   One stop   L + 6.00%     7.50 %   07/2017     4,711       4,672       0.6       4,711  
Vision Source L.P.(3)   One stop   L + 5.00%     N/A (4)   04/2016     -       (7 )     -       -  
Vision Source L.P.*^   One stop   L + 5.00%     6.00 %   04/2016     16,957       16,853       2.3       16,957  
                          157,576       155,866       21.6       157,481  
                                                     
Telecommunications                                                    
Arise Virtual Solutions, Inc.(3)   One stop   L + 6.00%     N/A (4)   12/2018     -       (12 )     -       -  
Arise Virtual Solutions, Inc.*^   One stop   L + 6.00%     7.25 %   12/2018     13,958       13,833       1.9       13,958  
Hosting.com Inc.   Senior loan   P + 3.25%     6.50 %   12/2017     7       5       -       7  
Hosting.com Inc.*   Senior loan   L + 4.50%     5.75 %   12/2017     873       862       0.1       873  
ITC Global, Inc. (3)   One stop   L + 6.75%     N/A (4)   07/2018     -       (13 )     -       -  
ITC Global, Inc.*   One stop   L + 6.75%     7.75 %   07/2018     8,410       8,334       1.2       8,410  
ITC Global, Inc.^   One stop   L + 6.75%     7.75 %   07/2018     1,434       1,421       0.2       1,434  
                          24,682       24,430       3.4       24,682  
                                                     
Textile and Leather                                                    
5.11, Inc.*^   Senior loan   L + 5.00%     6.00 %   02/2020     1,033       1,029       0.1       1,036  
Southern Tide, LLC (3)   One stop   L + 6.75%     N/A (4)   06/2019     -       (9 )     -       (9 )
Southern Tide, LLC^   One stop   L + 6.75%     7.75 %   06/2019     4,106       4,065       0.6       4,065  
                          5,139       5,085       0.7       5,092  
                                                     
Utilities                                                    
PowerPlan Consultants, Inc.(3)   Senior loan   L + 4.25%     N/A (4)   10/2018     -       (1 )     -       -  
PowerPlan Consultants, Inc.*^   Senior loan   L + 4.25%     5.30 %   10/2019     3,837       3,790       0.5       3,837  
                          3,837       3,789       0.5       3,837  
                                                     
Total debt investments United States                       $ 1,290,326     $ 1,273,916       175.6 %   $ 1,276,361  

  

See Notes to Consolidated Financial Statements

 

12
 

  

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (Continued)
June 30, 2014
(In thousands)

 

      Spread                Percentage     
   Investment  Above  Interest  Maturity  Shares /       of   Fair 
   Type  Index (1)  Rate(2)  Date  Contracts   Cost   Net Assets   Value 
                             
Equity Investments (9)                                
Aerospace and Defense                                
NTS Technical Systems  Common stock  N/A  N/A  N/A   2   $1,506    0.2%  $1,506 
Tresys Technology Holdings, Inc.  Common stock  N/A  N/A  N/A   295    295    -    3 
Whitcraft LLC  Common stock  N/A  N/A  N/A   1    670    0.1    409 
Whitcraft LLC  Warrant  N/A  N/A  N/A   -    -    -    80 
                     2,471    0.3    1,998 
Automobile                                
ABRA, Inc  LLC interest  N/A  N/A  N/A   208    352    0.6    4,175 
K&N Engineering, Inc.  Preferred stock A  N/A  N/A  N/A   -    26    -    42 
K&N Engineering, Inc.  Preferred stock B  N/A  N/A  N/A   -    -    -    12 
K&N Engineering, Inc.  Common stock  N/A  N/A  N/A   -    4    -    95 
                     382    0.6    4,324 
Beverage, Food and Tobacco                                
Atkins Nutritionals, Inc.  LLC interest  N/A  N/A  N/A   57    746    0.1    827 
C. J. Foods, Inc.  Common stock  N/A  N/A  N/A   157    157    -    157 
First Watch Restaurants, Inc.  Common stock  N/A  N/A  N/A   8    816    0.1    879 
Goode Seed Co-Invest, LLC  LLC units  N/A  N/A  N/A   356    356    0.1    411 
Julio & Sons Company  LLC interest  N/A  N/A  N/A   521    521    0.1    440 
Northern Brewer, LLC  LLC interest  N/A  N/A  N/A   438    362    -    37 
Richelieu Foods, Inc.  LP interest  N/A  N/A  N/A   220    220    -    139 
                     3,178    0.4    2,890 
                                 
Containers, Packaging and Glass     N/A  N/A  N/A                    
Packaging Coordinators, Inc.  LLC interest  N/A  N/A  N/A   48    1,563    0.4    2,641 
                                 
Diversified Conglomerate Manufacturing     N/A  N/A  N/A                    
ICCN Acquisition Corp.  Preferred stock  N/A  N/A  N/A   -    162    -    162 
ICCN Acquisition Corp.  Common stock  N/A  N/A  N/A   -    -    -    - 
Oasis Outsourcing Holdings, Inc.  LLC interest  N/A  N/A  N/A   1,088    860    0.2    1,719 
Sunless Merger Sub, Inc.  LP interest  N/A  N/A  N/A   -    160    -    4 
TIDI Products, LLC  LLC units  N/A  N/A  N/A   315    158    -    263 
      N/A  N/A  N/A        1,340    0.2    2,148 
                                 
Diversified Conglomerate Service                                
Daxko, LLC  LLC units  N/A  N/A  N/A   219    219    -    219 
Document Technologies, LLC  LLC interest  N/A  N/A  N/A   24    490    0.1    909 
Marathon Data Operating Co., LLC  Preferred stock  N/A  N/A  N/A   1    264    0.1    305 
Marathon Data Operating Co., LLC  Common stock  N/A  N/A  N/A   1    264    0.1    309 
Navex Global, Inc.  LP interest  N/A  N/A  N/A   -    666    0.1    798 
PC Helps Support, LLC  Common stock  N/A  N/A  N/A   1    7    -    - 
PC Helps Support, LLC  Preferred stock  N/A  N/A  N/A   -    61