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 March 31, 2018

OR

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number 814-00794

Golub Capital BDC, Inc.
(Exact name of registrant as specified in its charter)

Delaware
 
27-2326940
(State or other jurisdiction of incorporation or organization)
 
 (I.R.S. Employer Identification No.)

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

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

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

Indicate by check mark whether the registrant has submitted electronically 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, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  þ
Accelerated filer o
Non-accelerated filer  o  (Do not check if a smaller reporting company)
Smaller reporting company o
Emerging growth company o
 

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

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

As of May 7, 2018, the Registrant had 59,867,531 shares of common stock, $0.001 par value, outstanding.


Part I. Financial Information
  
Item 1.
Financial Statements
 
Consolidated Statements of Financial Condition as of March 31, 2018 (unaudited) and September 30, 2017
 
Consolidated Statements of Operations for the three and six months ended March 31, 2018 (unaudited) and 2017 (unaudited)
 
Consolidated Statements of Changes in Net Assets for the six months ended March 31, 2018 (unaudited) and 2017 (unaudited)
 
Consolidated Statements of Cash Flows for the six months ended March 31, 2018 (unaudited) and 2017 (unaudited)
 
Consolidated Schedules of Investments as of March 31, 2018 (unaudited) and September 30, 2017
 
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)
 
March 31, 2018
 
September 30, 2017
 
(unaudited)
 
 
Assets
  

 
  

Investments, at fair value
  

 
  

Non-controlled/non-affiliate company investments
$
1,660,849

 
$
1,586,293

Non-controlled affiliate company investments
3,967

 
3,707

Controlled affiliate company investments
94,991

 
95,015

Total investments at fair value (amortized cost of $1,738,586 and $1,671,239, respectively)
1,759,807

 
1,685,015

Cash and cash equivalents
5,868

 
3,988

Restricted cash and cash equivalents
42,488

 
58,570

Interest receivable
7,640

 
6,271

Other assets
230

 
332

Total Assets
$
1,816,033

 
$
1,754,176

Liabilities
  

 
  

Debt
$
835,200

 
$
781,100

Less unamortized debt issuance costs
3,920

 
4,273

Debt less unamortized debt issuance costs
831,280

 
776,827

Interest payable
2,662

 
3,800

Management and incentive fees payable
15,159

 
13,215

Accounts payable and accrued expenses
2,147

 
2,312

Payable for investments purchased
350

 
—

Accrued trustee fees
79

 
76

Total Liabilities
851,677

 
796,230

Commitments and Contingencies (Note 7)
  

 
  

Net Assets
  

 
  

Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of March 31, 2018 and September 30, 2017
—

 
—

Common stock, par value $0.001 per share, 100,000,000 shares authorized, 59,867,531 and 59,577,293 shares issued and outstanding as of March 31, 2018 and September 30, 2017 respectively
60

 
60

Paid in capital in excess of par
944,318

 
939,307

Undistributed (over distribution of) net investment income
(976
)
 
1,954

Net unrealized appreciation (depreciation) on investments and secured borrowings
23,889

 
16,444

Net realized gain (loss) on investments
(2,935
)
 
181

Total Net Assets
964,356

 
957,946

Total Liabilities and Total Net Assets
$
1,816,033

 
$
1,754,176

Number of common shares outstanding
59,867,531

 
59,577,293

Net asset value per common share
$
16.11

 
$
16.08




See Notes to Consolidated Financial Statements.
3




Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
(In thousands, except share and per share data)
 
Three months ended March 31,
 
Six months ended March 31,
  
2018
 
2017
 
2018
 
2017
Investment income
  

 
  

 
 
 
 
From non-controlled/non-affiliate company investments:
  

 
  

 
 
 
 
Interest income
$
34,215

 
$
30,630

 
$
67,407

 
$
61,361

Dividend income
13

 
8

 
610

 
160

Fee income
662

 
178

 
1,196

 
432

Total investment income from non-controlled/non-affiliate company investments
34,890

 
30,816

 
69,213

 
61,953

From non-controlled affiliate company investments:
  

 
  

 
 
 
 
Interest income
154

 
324

 
316

 
651

Total investment income from non-controlled affiliate company investments
154

 
324

 
316

 
651

From controlled affiliate company investments:
  

 
  

 
 
 
 
Interest income
—

 
—

 
—

 
1,639

Dividend income
1,853

 
2,417

 
3,818

 
3,163

Total investment income from controlled affiliate company investments
1,853

 
2,417

 
3,818

 
4,802

Total investment income
36,897

 
33,557

 
73,347

 
67,406

Expenses
  

 
  

 
 
 
 
Interest and other debt financing expenses
7,906

 
7,674

 
15,620

 
15,280

Base management fee
5,929

 
5,848

 
11,859

 
11,685

Incentive fee
3,011

 
2,110

 
5,882

 
4,201

Professional fees
775

 
717

 
1,463

 
1,297

Administrative service fee
621

 
524

 
1,239

 
1,125

General and administrative expenses
127

 
130

 
245

 
301

Total expenses
18,369

 
17,003

 
36,308

 
33,889

Net investment income - before excise tax
18,528

 
16,554

 
37,039

 
33,517

Excise tax
—

 
7

 
—

 
17

Net investment income - after excise tax
18,528

 
16,547

 
37,039

 
33,500

Net gain (loss) on investments
  

 
  

 
 
 
 
Net realized gain (loss) on investments:
  

 
  

 
 
 
 
Non-controlled/non-affiliate company investments
(618
)
 
686

 
(137
)
 
1,593

Net realized gain (loss) on investments
(618
)
 
686

 
(137
)
 
1,593

Net change in unrealized appreciation (depreciation) on investments:
  

 
  

 
 
 
 
Non-controlled/non-affiliate company investments
5,829

 
2,723

 
6,817

 
4,988

Non-controlled affiliate company investments
5

 
213

 
564

 
(430
)
Controlled affiliate company investments
(712
)
 
570

 
64

 
72

Net change in unrealized appreciation (depreciation) on investments
5,122

 
3,506

 
7,445

 
4,630

Net change in unrealized appreciation (depreciation) on secured borrowings
—

 
1

 
—

 
1

Net gain (loss) on investments
4,504

 
4,193

 
7,308

 
6,224

Net increase in net assets resulting from operations
$
23,032

 
$
20,740

 
$
44,347

 
$
39,724

Per Common Share Data
  

 
  

 
 
 
 
Basic and diluted earnings per common share
$
0.39

 
$
0.38

 
$
0.75

 
$
0.72

Dividends and distributions declared per common share
$
0.32

 
$
0.32

 
$
0.72

 
$
0.89

Basic and diluted weighted average common shares outstanding
59,744,054

 
55,395,179

 
59,663,361

 
55,228,210


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 (Over Distribution) of Net Investment Income
 
 
Net Realized Gain (Loss) on Investments
 
 
 
Shares
 
Par Amount
 
 
 
 
 
Total Net Assets
Balance at September 30, 2016
55,059,067

 
$
55

 
$
855,998

 
$
18,832

 
$
13,104

 
$
(9,164
)
 
$
878,825

Issuance of common stock, net of offering and underwriting costs(1)
1,750,000

 
2

 
32,078

 
—

 
—

 
—

 
32,080

Net increase in net assets resulting from operations
—

 
—

 
—

 
33,500

 
4,631

 
1,593

 
39,724

Distributions to stockholders:
  

 
  

 
  

 
  

 
  

 
  

 
 
Stock issued in connection with dividend reinvestment plan
294,356

 
—

 
5,312

 
—

 
—

 
—

 
5,312

Distributions from net investment income
—

 
—

 
—

 
(47,921
)
 
—

 
—

 
(47,921
)
Distributions from net realized gain
—

 
—

 
—

 
—

 
—

 
(1,139
)
 
(1,139
)
Total increase (decrease) for the period ended March 31, 2017
2,044,356

 
2

 
37,390

 
(14,421
)
 
4,631

 
454

 
28,056

Balance at March 31, 2017
57,103,423

 
$
57

 
$
893,388

 
$
4,411

 
$
17,735

 
$
(8,710
)
 
$
906,881

Balance at September 30, 2017
59,577,293

 
$
60

 
$
939,307

 
$
1,954

 
$
16,444

 
$
181

 
$
957,946

Issuance of common stock, net of offering and underwriting costs
—

 
—

 
—

 
—

 
—

 
—

 
—

Net increase in net assets resulting from operations
—

 
—

 
—

 
37,039

 
7,445

 
(137
)
 
44,347

Distributions to stockholders:
  

 
  

 
  

 
  

 
  

 
  

 
 
Stock issued in connection with dividend reinvestment plan
290,238

 
—

 
5,011

 
—

 
—

 
—

 
5,011

Distributions from net investment income
—

 
—

 
—

 
(39,969
)
 
—

 
—

 
(39,969
)
Distributions from net realized gain
—

 
—

 
—

 
—

 
—

 
(2,979
)
 
(2,979
)
Total increase (decrease) for the period ended March 31, 2018
290,238

 
—

 
5,011

 
(2,930
)
 
7,445

 
(3,116
)
 
6,410

Balance at March 31, 2018
59,867,531

 
$
60

 
$
944,318

 
$
(976
)
 
$
23,889

 
$
(2,935
)
 
$
964,356


(1) On March 21, 2017, Golub Capital BDC, Inc. priced a public offering of 1,750,000 shares of its common stock at a public offering price of $19.03 per share.






See Notes to Consolidated Financial Statements.
5




Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(In thousands)
 
Six months ended March 31,
  
2018
 
2017
Cash flows from operating activities
  

 
  

Net increase in net assets resulting from operations
$
44,347

 
$
39,724

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
1,435

 
1,645

Accretion of discounts and amortization of premiums
(5,070
)
 
(3,622
)
Net realized (gain) loss on investments
137

 
(1,593
)
Net change in unrealized (appreciation) depreciation on investments
(7,445
)
 
(4,630
)
Net change in unrealized appreciation (depreciation) on secured borrowings
—

 
(1
)
Proceeds from (fundings of) revolving loans, net
1,923

 
(1,409
)
Fundings of investments
(271,602
)
 
(228,284
)
Proceeds from principal payments and sales of portfolio investments
207,777

 
167,133

PIK interest
(512
)
 
(987
)
Changes in operating assets and liabilities:
  

 
  

Interest receivable
(1,369
)
 
(78
)
Other assets
102

 
157

Interest payable
(1,138
)
 
408

Management and incentive fees payable
1,944

 
(435
)
Payable for investments purchased
350

 
190

Accounts payable and accrued expenses
(165
)
 
(132
)
Accrued trustee fees
3

 
2

Net cash (used in) provided by operating activities
(29,283
)
 
(31,912
)
Cash flows from financing activities
  

 
  

Borrowings on debt
263,850

 
232,750

Repayments of debt
(209,750
)
 
(233,800
)
Capitalized debt issuance costs
(1,082
)
 
(939
)
Repayments on secured borrowings
—

 
(27
)
Proceeds from shares sold, net of underwriting costs
—

 
32,305

Offering costs paid
—

 
(225
)
Distributions paid
(37,937
)
 
(43,748
)
Net cash provided by (used in) financing activities
15,081

 
(13,684
)
Net change in cash, cash equivalents and restricted cash and cash equivalents
(14,202
)
 
(45,596
)
Cash, cash equivalents and restricted cash and cash equivalents, beginning of period
62,558

 
89,540

Cash, cash equivalents and restricted cash and cash equivalents, end of period
$
48,356

 
$
43,944

Supplemental disclosure of cash flow information:
  

 
  

Cash paid during the period for interest
$
15,323

 
$
13,220

Distributions declared during the period
42,948

 
49,060

Supplemental disclosure of noncash operating activity:
 
 
 
Funding of LLC equity interests 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-1-R, Class A-2-R, and Class B-R 2014 Notes
$
246,000

 
$
—

Redemptions of Class A-1, Class A-2, and Class B 2014 Notes
(246,000
)
 
—

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




The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents reported within the Consolidated Statements of Financial Condition that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows:
 
As of March 31,
 
2018
 
2017
Cash and cash equivalents
$
5,868

 
$
4,614

Restricted cash and cash equivalents
42,488

 
39,330

Total cash, cash equivalents and restricted cash and cash equivalents shown in the Consolidated
Statements of Cash Flows
$
48,356

 
$
43,944

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



See Notes to Consolidated Financial Statements.
7



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


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

 
  

 
  

 
  

Non-controlled/non-affiliate company investments
 
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Debt investments
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Aerospace and Defense
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

ILC Dover, LP#
Senior loan
 
L + 4.75%
(a)(d) 
 
6.58%
 
12/2023
 
$
9,978

 
$
9,882

 
1.0

%
$
9,878

NTS Technical Systems*^#
One stop
 
L + 6.25%
(a) 
 
7.91%
 
06/2021
 
21,773

 
21,525

 
2.3

 
21,773

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

 
(63
)
 
—

 
—

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

 
(104
)
 
—

 
—

Tresys Technology Holdings, Inc.(7)
One stop
 
L + 6.75%
(a) 
 
8.64%
 
12/2018
 
3,899

 
3,845

 
0.1

 
1,170

Tresys Technology Holdings, Inc.(7)
One stop
 
L + 6.75%
(a) 
 
8.64%
 
12/2018
 
659

 
658

 
0.1

 
659

Tronair Parent, Inc.^
Senior loan
 
L + 4.75%
(c)(e) 
 
6.56%
 
09/2023
 
368

 
365

 
—

 
368

Tronair Parent, Inc.
Senior loan
 
L + 4.50%
(c)(e) 
 
7.24%
 
09/2021
 
62

 
61

 
—

 
62

Whitcraft LLC*^
One stop
 
L + 6.25%
(c) 
 
8.56%
 
04/2023
 
12,502

 
12,344

 
1.3

 
12,502

Whitcraft LLC
One stop
 
L + 6.25%
(c) 
 
8.56%
 
04/2023
 
195

 
193

 
—

 
195

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

 
(1
)
 
—

 
—

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

 
(2
)
 
—

 
—

 
 
 
 
 
 
 
 
 
 
49,436

 
48,703

 
4.8

 
46,607

Automobile
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Dent Wizard International Corporation*
Senior loan
 
L + 4.00%
(a) 
 
5.88%
 
04/2020
 
4,500

 
4,481

 
0.5

 
4,500

Grease Monkey International, LLC*^
Senior loan
 
L + 5.00%
(a) 
 
6.89%
 
11/2022
 
4,887

 
4,831

 
0.5

 
4,887

Grease Monkey International, LLC
Senior loan
 
P + 4.00%
(a)(e) 
 
8.15%
 
11/2022
 
32

 
31

 
—

 
32

Grease Monkey International, LLC(5)
Senior loan
 
L + 5.00%
 
 
N/A(6)
 
11/2022
 
—

 
(1
)
 
—

 
—

T5 Merger Corporation*^
One stop
 
L + 6.50%
(a) 
 
8.16%
 
03/2022
 
4,359

 
4,298

 
0.5

 
4,272

T5 Merger Corporation*
One stop
 
L + 6.50%
(a) 
 
8.16%
 
03/2022
 
190

 
188

 
—

 
186

T5 Merger Corporation
One stop
 
L + 6.50%
(a) 
 
8.32%
 
03/2022
 
98

 
96

 
—

 
95

T5 Merger Corporation*
One stop
 
L + 6.50%
(a) 
 
8.16%
 
03/2022
 
60

 
59

 
—

 
59

  
 
 
 
 
 
 
 
 
 
14,126

 
13,983

 
1.5

 
14,031

Beverage, Food and Tobacco
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Abita Brewing Co., L.L.C.
One stop
 
L + 5.75%
(a) 
 
7.64%
 
04/2021
 
7,454

 
7,364

 
0.8

 
7,454

Abita Brewing Co., L.L.C.(5)
One stop
 
L + 5.75%
 
 
N/A(6)
 
04/2021
 
—

 
(1
)
 
—

 
—

Benihana, Inc.*^
One stop
 
L + 7.00%
(c)(e) 
 
9.13%
 
01/2019
 
16,018

 
15,925

 
1.7

 
16,018

Benihana, Inc.
One stop
 
L + 7.00%
(a)(e) 
 
9.49%
 
07/2018
 
1,726

 
1,721

 
0.2

 
1,726

C. J. Foods, Inc.*^#
One stop
 
L + 6.25%
(c) 
 
8.02%
 
05/2020
 
8,625

 
8,551

 
0.9

 
8,538

C. J. Foods, Inc.^
One stop
 
L + 6.25%
(c) 
 
8.02%
 
05/2019
 
653

 
649

 
0.1

 
646

C. J. Foods, Inc.
One stop
 
L + 6.25%
(c) 
 
8.05%
 
05/2019
 
86

 
83

 
—

 
80

Cafe Rio Holding, Inc.^
One stop
 
L + 5.75%
(a) 
 
7.64%
 
09/2023
 
10,423

 
10,257

 
1.1

 
10,423

Cafe Rio Holding, Inc.
One stop
 
L + 5.75%
(c) 
 
7.52%
 
09/2023
 
40

 
35

 
—

 
40

Cafe Rio Holding, Inc.
One stop
 
P + 4.75%
(e) 
 
9.50%
 
09/2023
 
35

 
33

 
—

 
35

Firebirds International, LLC*
One stop
 
L + 5.75%
(c) 
 
7.42%
 
12/2018
 
1,057

 
1,054

 
0.1

 
1,057

Firebirds International, LLC*
One stop
 
L + 5.75%
(c) 
 
7.42%
 
12/2018
 
297

 
296

 
—

 
297

Firebirds International, LLC^
One stop
 
L + 5.75%
(c) 
 
7.42%
 
12/2018
 
95

 
95

 
—

 
95

Firebirds International, LLC
One stop
 
L + 5.75%
 
 
N/A(6)
 
12/2018
 
—

 
—

 
—

 
—

Firebirds International, LLC
One stop
 
L + 5.75%
 
 
N/A(6)
 
12/2018
 
—

 
—

 
—

 
—

Flavor Producers, LLC#
Senior loan
 
L + 4.75%
(c) 
 
6.71%
 
12/2023
 
2,166

 
2,135

 
0.2

 
2,166

Flavor Producers, LLC
Senior loan
 
L + 4.75%
(c) 
 
6.71%
 
12/2022
 
4

 
3

 
—

 
4

FWR Holding Corporation^
One stop
 
L + 6.00%
(d) 
 
7.66%
 
08/2023
 
5,299

 
5,227

 
0.6

 
5,299

FWR Holding Corporation
One stop
 
L + 6.00%
(b)(c) 
 
7.62%
 
08/2023
 
65

 
63

 
—

 
65

FWR Holding Corporation
One stop
 
P + 5.00%
(c)(e) 
 
9.24%
 
08/2023
 
30

 
29

 
—

 
30

Global Franchise Group, LLC*
Senior loan
 
L + 5.75%
(c) 
 
8.05%
 
12/2019
 
3,392

 
3,367

 
0.4

 
3,392

Global Franchise Group, LLC
Senior loan
 
L + 5.75%
 
 
N/A(6)
 
12/2019
 
—

 
—

 
—

 
—

Global ID Corporation#
One stop
 
L + 6.50%
(c) 
 
8.68%
 
11/2021
 
5,170

 
5,123

 
0.5

 
5,170

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

 
—

 
—

 
—

Global ID Corporation(5)
One stop
 
L + 6.50%
 
 
N/A(6)
 
11/2021
 
—

 
(2
)
 
—

 
—


See Notes to Consolidated Financial Statements.
8



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


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares(3)
 
Amortized Cost
 
Percentage
of Net
Assets
 
Fair
Value (4)
Beverage, Food and Tobacco - (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hopdoddy Holdings, LLC
One stop
 
L + 8.00%
(c) 
 
9.98%
 
08/2020
 
$
1,315

 
$
1,306

 
0.1

%
$
1,315

Hopdoddy Holdings, LLC
One stop
 
L + 8.00%
(c) 
 
10.01%
 
08/2020
 
3

 
2

 
—

 
3

Hopdoddy Holdings, LLC(5)
One stop
 
L + 8.00%
 
 
N/A(6)
 
08/2020
 
—

 
(1
)
 
—

 
(1
)
Mid-America Pet Food, L.L.C.^#
One stop
 
L + 6.00%
(b) 
 
8.00%
 
12/2021
 
10,806

 
10,704

 
1.1

 
10,725

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

 
(1
)
 
—

 
(1
)
NBC Intermediate, LLC ^
Senior loan
 
L + 4.50%
(a) 
 
6.39%
 
09/2023
 
2,138

 
2,118

 
0.2

 
2,138

NBC Intermediate, LLC
Senior loan
 
P + 3.50%
(e) 
 
8.25%
 
09/2023
 
1

 
1

 
—

 
1

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
7.98%
 
05/2021
 
8,517

 
8,386

 
0.9

 
8,517

Purfoods, LLC
One stop
 
N/A
 
 
7.00% PIK
 
05/2026
 
109

 
109

 
—

 
115

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
7.87%
 
05/2021
 
40

 
40

 
—

 
40

Purfoods, LLC
One stop
 
L + 6.00%
(a) 
 
7.79%
 
05/2021
 
40

 
39

 
—

 
40

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.31%
 
05/2021
 
24

 
24

 
—

 
24

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.31%
 
05/2021
 
15

 
15

 
—

 
15

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.31%
 
05/2021
 
15

 
15

 
—

 
15

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.31%
 
05/2021
 
14

 
14

 
—

 
14

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.31%
 
05/2021
 
11

 
11

 
—

 
11

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.31%
 
05/2021
 
11

 
11

 
—

 
11

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.31%
 
05/2021
 
10

 
10

 
—

 
10

Purfoods, LLC(5)
One stop
 
L + 6.00%
 
 
N/A(6)
 
05/2021
 
—

 
(1
)
 
—

 
(2
)
Restaurant Holding Company, LLC#
Senior loan
 
L + 7.75%
(a) 
 
9.63%
 
02/2019
 
3,975

 
3,966

 
0.4

 
3,975

Rubio's Restaurants, Inc.*^
Senior loan
 
L + 5.25%
(c) 
 
7.56%
 
10/2019
 
11,231

 
10,973

 
1.2

 
11,231

Smashburger Finance LLC
Senior loan
 
L + 5.50%
(c) 
 
7.50%
 
05/2018
 
78

 
78

 
—

 
78

Smashburger Finance LLC
Senior loan
 
L + 5.50%
 
 
N/A(6)
 
05/2018
 
—

 
—

 
—

 
—

Tate's Bake Shop, Inc.^
One stop
 
L + 6.25%
(c) 
 
8.56%
 
08/2019
 
4,303

 
4,253

 
0.4

 
4,303

Uinta Brewing Company^
One stop
 
L + 8.50%
(a) 
 
10.39%
 
08/2019
 
3,725

 
3,714

 
0.4

 
3,725

Uinta Brewing Company
One stop
 
L + 8.50%
(a) 
 
10.39%
 
08/2019
 
693

 
690

 
0.1

 
693

 
 
 
 
 
 
 
 
 
 
109,709

 
108,483

 
11.4

 
109,530

Broadcasting and Entertainment
 
 
 
 
 
 
 
 
 
  

 
  

 
 
 
  

TouchTunes Interactive Networks, Inc.^
Senior loan
 
L + 4.75%
(a) 
 
6.63%
 
05/2021
 
1,455

 
1,451

 
0.2

 
1,468

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Buildings and Real Estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brooks Equipment Company, LLC*^
One stop
 
L + 5.00%
(c) 
 
6.99%
 
08/2020
 
21,470

 
21,343

 
2.2

 
21,470

Brooks Equipment Company, LLC*
One stop
 
L + 5.00%
(c) 
 
6.97%
 
08/2020
 
5,005

 
4,979

 
0.5

 
5,005

Brooks Equipment Company, LLC(5)
One stop
 
L + 5.00%
 
 
N/A(6)
 
08/2020
 
—

 
(8
)
 
—

 
—

Jensen Hughes, Inc.#
Senior loan
 
L + 4.50%
(b) 
 
6.46%
 
03/2024
 
500

 
497

 
0.1

 
497

Jensen Hughes, Inc.#
Senior loan
 
L + 4.50%
(c) 
 
6.27%
 
03/2024
 
153

 
151

 
—

 
152

Jensen Hughes, Inc.
Senior loan
 
L + 4.50%
 
 
N/A(6)
 
03/2024
 
—

 
—

 
—

 
—

MRI Software LLC^
One stop
 
L + 6.25%
(c) 
 
8.56%
 
06/2023
 
23,803

 
23,248

 
2.5

 
23,803

MRI Software LLC*^
One stop
 
L + 6.25%
(c) 
 
8.56%
 
06/2023
 
13,814

 
13,688

 
1.4

 
13,814

MRI Software LLC^
One stop
 
L + 6.25%
(c) 
 
8.56%
 
06/2023
 
359

 
356

 
0.1

 
359

MRI Software LLC#
One stop
 
L + 6.25%
(c) 
 
8.56%
 
06/2023
 
195

 
193

 
—

 
195

MRI Software LLC^
One stop
 
L + 6.25%
(c) 
 
8.36%
 
06/2023
 
166

 
164

 
—

 
166

MRI Software LLC
One stop
 
L + 6.25%
(c) 
 
8.28%
 
06/2023
 
25

 
22

 
—

 
25

MRI Software LLC(5)
One stop
 
L + 6.00%
 
 
N/A(6)
 
06/2023
 
—

 
(6
)
 
—

 
—

 
 
 
 
 
 
 
 
 
 
65,490

 
64,627

 
6.8

 
65,486

Chemicals, Plastics and Rubber
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Flexan, LLC*
One stop
 
L + 5.75%
(c) 
 
8.06%
 
02/2020
 
2,322

 
2,308

 
0.2

 
2,322

Flexan, LLC
One stop
 
P + 4.50%
(e) 
 
9.25%
 
02/2020
 
17

 
17

 
—

 
17

 
 
 
 
 
 
 
 
 
 
2,339

 
2,325

 
0.2

 
2,339


See Notes to Consolidated Financial Statements.
9



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


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

 
  

 
  

 
  

Chase Industries, Inc.*^#
One stop
 
L + 5.75%
(c) 
 
7.44%
 
09/2020
 
$
31,950

 
$
31,779

 
3.3

%
$
31,950

Chase Industries, Inc.#
One stop
 
L + 5.75%
(c) 
 
7.44%
 
09/2020
 
4,746

 
4,727

 
0.5

 
4,746

Chase Industries, Inc.
One stop
 
L + 5.75%
(c)(e) 
 
7.82%
 
09/2020
 
1,187

 
1,178

 
0.1

 
1,187

Inventus Power, Inc.*^
One stop
 
L + 6.50%
(a) 
 
8.39%
 
04/2020
 
8,106

 
8,073

 
0.7

 
6,891

Inventus Power, Inc.
One stop
 
L + 6.50%
(a) 
 
8.39%
 
04/2020
 
251

 
248

 
—

 
204

Onicon Incorporated*^
One stop
 
L + 6.00%
(c) 
 
8.30%
 
04/2020
 
12,556

 
12,481

 
1.3

 
12,556

Onicon Incorporated(5)
One stop
 
L + 6.00%
 
 
N/A(6)
 
04/2020
 
—

 
(3
)
 
—

 
—

PetroChoice Holdings, Inc.^
Senior loan
 
L + 5.00%
(b) 
 
6.79%
 
08/2022
 
1,741

 
1,704

 
0.2

 
1,741

Plex Systems, Inc.*^
One stop
 
L + 7.50%
(c) 
 
9.27%
 
06/2020
 
18,797

 
18,584

 
2.0

 
18,797

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

 
(18
)
 
—

 
—

Reladyne, Inc.*^#
Senior loan
 
L + 5.00%
(a) 
 
6.66%
 
07/2022
 
16,965

 
16,752

 
1.8

 
16,965

Reladyne, Inc.
Senior loan
 
L + 5.00%
(a)(c) 
 
6.81%
 
07/2022
 
173

 
171

 
—

 
173

Reladyne, Inc.
Senior loan
 
L + 5.00%
(a) 
 
6.86%
 
07/2022
 
5

 
1

 
—

 
5

Sunless Merger Sub, Inc.#
Senior loan
 
L + 5.00%
(a)(e) 
 
6.89%
 
07/2019
 
1,427

 
1,431

 
0.2

 
1,427

Sunless Merger Sub, Inc.
Senior loan
 
P + 3.75%
(e) 
 
8.50%
 
07/2019
 
387

 
386

 
—

 
387

Togetherwork Holdings, LLC#
One stop
 
L + 6.50%
(a) 
 
8.24%
 
03/2025
 
9,204

 
9,067

 
0.9

 
9,112

Togetherwork Holdings, LLC
One stop
 
L + 6.50%
(a) 
 
8.28%
 
03/2024
 
40

 
39

 
—

 
39

Togetherwork Holdings, LLC(5)
One stop
 
L + 6.50%
 
 
N/A(6)
 
03/2025
 
—

 
(5
)
 
—

 
(4
)
  
 
 
 
 
 
 
 
 
 
107,535

 
106,595

 
11.0

 
106,176

Diversified/Conglomerate Service
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Accela, Inc.#
One stop
 
L + 6.25%
(c) 
 
8.56%
 
09/2023
 
5,812

 
5,732

 
0.6

 
5,812

Accela, Inc.(5)
One stop
 
L + 6.25%
 
 
N/A(6)
 
09/2023
 
—

 
(1
)
 
—

 
—

Agility Recovery Solutions Inc.*^
One stop
 
L + 6.50%
(c) 
 
8.27%
 
03/2020
 
13,880

 
13,800

 
1.4

 
13,880

Agility Recovery Solutions Inc.(5)
One stop
 
L + 6.50%
 
 
N/A(6)
 
03/2020
 
—

 
(4
)
 
—

 
—

Anaqua, Inc.*^
One stop
 
L + 6.50%
(c) 
 
8.24%
 
07/2022
 
6,984

 
6,892

 
0.7

 
6,984

Anaqua, Inc.(5)
One stop
 
L + 6.50%
 
 
N/A(6)
 
07/2022
 
—

 
(1
)
 
—

 
—

Apttus Corporation
One stop
 
L + 7.85%
 
 
10.06%
 
01/2023
 
5,627

 
5,387

 
0.5

 
5,405

Bazaarvoice, Inc.#
One stop
 
L + 8.00%
(c) 
 
9.77%
 
02/2024
 
9,003

 
8,828

 
0.9

 
8,823

Bazaarvoice, Inc.(5)
One stop
 
L + 8.00%
 
 
N/A(6)
 
02/2024
 
—

 
(2
)
 
—

 
(2
)
Bomgar Corporation^
One stop
 
L + 7.50%
(a) 
 
9.39%
 
06/2022
 
4,814

 
4,746

 
0.5

 
4,814

Bomgar Corporation*
One stop
 
L + 7.00%
(a) 
</