Wdesk | 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 June 30, 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 August 8, 2018, the Registrant had 60,006,524 shares of common stock, $0.001 par value, outstanding.


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

 
June 30, 2018
 
September 30, 2017
 
(unaudited)
 
 
Assets
  

 
  

Investments, at fair value
  

 
  

Non-controlled/non-affiliate company investments
$
1,701,948

 
$
1,586,293

Non-controlled affiliate company investments
3,988

 
3,707

Controlled affiliate company investments
92,579

 
95,015

Total investments at fair value (amortized cost of $1,789,214 and $1,671,239, respectively)
1,798,515

 
1,685,015

Cash and cash equivalents
6,814

 
3,988

Foreign currencies (cost of $111 and $0, respectively)
111

 
—

Restricted cash and cash equivalents
65,282

 
58,570

Interest receivable
6,463

 
6,271

Other assets
390

 
332

Total Assets
$
1,877,575

 
$
1,754,176

Liabilities
  

 
  

Debt
$
875,950

 
$
781,100

Less unamortized debt issuance costs
3,128

 
4,273

Debt less unamortized debt issuance costs
872,822

 
776,827

Other short-term borrowings (proceeds of $9,511 and $0, respectively)
9,425

 
—

Interest payable
6,783

 
3,800

Management and incentive fees payable
16,749

 
13,215

Accounts payable and accrued expenses
2,401

 
2,312

Accrued trustee fees
73

 
76

Total Liabilities
908,253

 
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 June 30, 2018 and September 30, 2017
—

 
—

Common stock, par value $0.001 per share, 100,000,000 shares authorized, 60,006,524 and 59,577,293 shares issued and outstanding as of June 30, 2018 and September 30, 2017, respectively
60

 
60

Paid in capital in excess of par
946,722

 
939,307

Undistributed (over distribution of) net investment income
(1,418
)
 
1,954

Net unrealized appreciation (depreciation) on investments, secured borrowings and foreign currency translation
12,054

 
16,444

Net realized gain (loss) on investments and foreign currency transactions
11,904

 
181

Total Net Assets
969,322

 
957,946

Total Liabilities and Total Net Assets
$
1,877,575

 
$
1,754,176

Number of common shares outstanding
60,006,524

 
59,577,293

Net asset value per common share
$
16.15

 
$
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 June 30,
 
Nine months ended June 30,
  
2018
 
2017
 
2018
 
2017
Investment income
  

 
  

 
 
 
 
From non-controlled/non-affiliate company investments:
  

 
  

 
 
 
 
Interest income
$
35,718

 
$
32,877

 
$
103,125

 
$
94,238

Dividend income
10

 
278

 
620

 
438

Fee income
459

 
990

 
1,655

 
1,422

Total investment income from non-controlled/non-affiliate company investments
36,187

 
34,145

 
105,400

 
96,098

From non-controlled affiliate company investments:
  

 
  

 
 
 
 
Interest income
159

 
372

 
475

 
1,023

Total investment income from non-controlled affiliate company investments
159

 
372

 
475

 
1,023

From controlled affiliate company investments:
  

 
  

 
 
 
 
Interest income
—

 
—

 
—

 
1,639

Dividend income
2,050

 
891

 
5,868

 
4,054

Total investment income from controlled affiliate company investments
2,050

 
891

 
5,868

 
5,693

Total investment income
38,396

 
35,408

 
111,743

 
102,814

Expenses
  

 
  

 
 
 
 
Interest and other debt financing expenses
8,556

 
8,099

 
24,176

 
23,379

Base management fee
6,125

 
6,059

 
17,984

 
17,744

Incentive fee
3,573

 
2,073

 
9,455

 
6,274

Professional fees
705

 
638

 
2,168

 
1,935

Administrative service fee
601

 
595

 
1,840

 
1,720

General and administrative expenses
120

 
136

 
365

 
437

Total expenses
19,680

 
17,600

 
55,988

 
51,489

Net investment income - before excise tax
18,716

 
17,808

 
55,755

 
51,325

Excise tax
—

 
—

 
—

 
17

Net investment income - after excise tax
18,716

 
17,808

 
55,755

 
51,308

Net gain (loss) on investments and foreign currency
  

 
  

 
 
 
 
Net realized gain (loss) on investments and foreign currency transactions:
  

 
  

 
 
 
 
Non-controlled/non-affiliate company investments
14,881

 
3,233

 
14,744

 
4,826

Non-controlled affiliate company investments
—

 
(6,442
)
 
—

 
(6,442
)
Foreign currency transactions
(42
)
 
—

 
(42
)
 
—

Net realized gain (loss) on investments and foreign currency transactions
14,839

 
(3,209
)
 
14,702

 
(1,616
)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation:
  

 
  

 
 
 
 
Non-controlled/non-affiliate company investments
(11,350
)
 
(245
)
 
(4,533
)
 
4,743

Non-controlled affiliate company investments
4

 
5,658

 
568

 
5,228

Controlled affiliate company investments
(575
)
 
99

 
(511
)
 
171

Foreign currency translation
86

 
—

 
86

 
—

Net change in unrealized appreciation (depreciation) on investments and foreign currency translation
(11,835
)
 
5,512

 
(4,390
)
 
10,142

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

 
—

 
—

 
1

Net gain (loss) on investments, secured borrowings and foreign currency
3,004

 
2,303

 
10,312

 
8,527

Net increase in net assets resulting from operations
$
21,720

 
$
20,111

 
$
66,067

 
$
59,835

Per Common Share Data
  

 
  

 
 
 
 
Basic and diluted earnings per common share
$
0.36

 
$
0.35

 
$
1.11

 
$
1.07

Dividends and distributions declared per common share
$
0.32

 
$
0.32

 
$
1.04

 
$
1.21

Basic and diluted weighted average common shares outstanding
59,872,113

 
57,719,505

 
59,732,945

 
56,058,642


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)

 
Common Stock
 
Paid in Capital in Excess of Par
 
Undistributed (Over Distribution) of Net Investment Income
 
Net Unrealized Appreciation (Depreciation) on Investments, Secured Borrowings and Foreign Currency Translation
 
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions
 
Total Net Assets
 
Shares
 
Par Amount
 
 
 
 
 
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)
3,762,500

 
4

 
69,489

 
—

 
—

 
—

 
69,493

Net increase in net assets resulting from operations
—

 
—

 
—

 
51,308

 
10,143

 
(1,616
)
 
59,835

Distributions to stockholders:
  

 
  

 
  

 
  

 
  

 
  

 
 
Stock issued in connection with dividend reinvestment plan
413,607

 
—

 
7,483

 
—

 
—

 
—

 
7,483

Distributions from net investment income
—

 
—

 
—

 
(66,278
)
 
—

 
—

 
(66,278
)
Distributions from net realized gain
—

 
—

 
—

 
—

 
—

 
(1,139
)
 
(1,139
)
Total increase (decrease) for the period ended June 30, 2017
4,176,107

 
4

 
76,972

 
(14,970
)
 
10,143

 
(2,755
)
 
69,394

Balance at June 30, 2017
59,235,174

 
$
59

 
$
932,970

 
$
3,862

 
$
23,247

 
$
(11,919
)
 
$
948,219

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
—

 
—

 
—

 
55,755

 
(4,390
)
 
14,702

 
66,067

Distributions to stockholders:
  

 
  

 
  

 
  

 
  

 
  

 
 
Stock issued in connection with dividend reinvestment plan
429,231

 
—

 
7,415

 
—

 
—

 
—

 
7,415

Distributions from net investment income
—

 
—

 
—

 
(59,127
)
 
—

 
—

 
(59,127
)
Distributions from net realized gain
—

 
—

 
—

 
—

 
—

 
(2,979
)
 
(2,979
)
Total increase (decrease) for the period ended June 30, 2018
429,231

 
—

 
7,415

 
(3,372
)
 
(4,390
)
 
11,723

 
11,376

Balance at June 30, 2018
60,006,524

 
$
60

 
$
946,722

 
$
(1,418
)
 
$
12,054

 
$
11,904

 
$
969,322


(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. On April 6, 2017, Golub Capital BDC, Inc. sold an additional 262,500 shares of its common stock at a public offering price of $19.03 per share pursuant to the underwriter's exercise of the option to purchase additional shares granted in connection with the public offering in March 2017. On June 6, 2017, Golub Capital BDC, Inc. entered into an agreement to sell 1,750,000 shares of its common stock pursuant to an underwritten, public offering at a price to the Company of $18.71 per share.






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,
  
2018
 
2017
Cash flows from operating activities
  

 
  

Net increase in net assets resulting from operations
$
66,067

 
$
59,835

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
2,242

 
2,488

Accretion of discounts and amortization of premiums
(7,420
)
 
(6,792
)
Net realized (gain) loss on investments
(14,744
)
 
1,616

Net change in unrealized (appreciation) depreciation on investments
4,476

 
(10,142
)
Net change in unrealized appreciation (depreciation) on secured borrowings
—

 
(1
)
Net change in unrealized appreciation (depreciation) on foreign currency and other transactions
(86
)
 
—

Proceeds from (fundings of) revolving loans, net
4,334

 
959

Fundings of investments
(464,209
)
 
(461,763
)
Proceeds from principal payments and sales of portfolio investments
364,773

 
336,464

PIK interest
(710
)
 
(1,537
)
Changes in operating assets and liabilities:
  

 
  

Interest receivable
(192
)
 
64

Receivable from investments sold
—

 
(1,317
)
Other assets
(58
)
 
248

Interest payable
2,983

 
3,045

Management and incentive fees payable
3,534

 
641

Payable for investments purchased
—

 
5,294

Accounts payable and accrued expenses
89

 
192

Accrued trustee fees
(3
)
 
(10
)
Net cash (used in) provided by operating activities
(38,924
)
 
(70,716
)
Cash flows from financing activities
  

 
  

Borrowings on debt
414,800

 
419,350

Repayments of debt
(319,950
)
 
(400,650
)
Capitalized debt issuance costs
(1,097
)
 
(1,145
)
Proceeds from other short-term borrowings
9,511

 
—

Repayments on secured borrowings
—

 
(69
)
Proceeds from shares sold, net of underwriting costs
—

 
69,893

Offering costs paid
—

 
(400
)
Distributions paid
(54,691
)
 
(59,934
)
Net cash provided by (used in) financing activities
48,573

 
27,045

Net change in cash, cash equivalents, foreign currencies and restricted cash and cash equivalents
9,649

 
(43,671
)
Cash, cash equivalents, foreign currencies and restricted cash and cash equivalents, beginning of period
62,558

 
89,540

Cash, cash equivalents, foreign currencies and restricted cash and cash equivalents, end of period
$
72,207

 
$
45,869

Supplemental disclosure of cash flow information:
  

 
  

Cash paid during the period for interest
$
18,951

 
$
17,836

Distributions declared during the period
62,106

 
67,417

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
)
Stock issued in connection with dividend reinvestment plan
7,415

 
7,483


See Notes to Consolidated Financial Statements.
6



Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited) - (continued)
(In thousands)

The following table provides a reconciliation of cash, cash equivalents, foreign currencies 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 June 30,
 
2018
 
2017
Cash and cash equivalents
$
6,814

 
$
12,827

Foreign currencies
111

 
—

Restricted cash and cash equivalents
65,282

 
33,042

Total cash, cash equivalents, foreign currencies and restricted cash and cash equivalents shown in the Consolidated Statements of Cash Flows
$
72,207

 
$
45,869

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)
June 30, 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%
(c)(f) 
 
7.09%
 
12/2023
 
$
9,978

 
$
9,886

 
1.0

%
$
9,978

NTS Technical Systems*^#
One stop
 
L + 6.25%
(a) 
 
8.23%
 
6/2021
 
21,773

 
21,544

 
2.3

 
21,773

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

 
(58
)
 
—

 
—

Tresys Technology Holdings, Inc.(7)
One stop
 
L + 6.75%
(a) 
 
8.84%
 
12/2018
 
3,899

 
3,845

 
0.1

 
1,170

Tresys Technology Holdings, Inc.(7)
One stop
 
L + 6.75%
(a) 
 
8.84%
 
12/2018
 
659

 
658

 
0.1

 
659

Tronair Parent, Inc.^
Senior loan
 
L + 4.75%
(c)(f) 
 
7.11%
 
9/2023
 
367

 
364

 
—

 
367

Tronair Parent, Inc.
Senior loan
 
L + 4.50%
(a)(c)(f) 
 
7.33%
 
9/2021
 
55

 
54

 
—

 
55

Whitcraft LLC*^
One stop
 
L + 6.25%
(c) 
 
8.58%
 
4/2023
 
12,470

 
12,321

 
1.3

 
12,470

Whitcraft LLC^
One stop
 
L + 6.25%
(c) 
 
8.58%
 
4/2023
 
195

 
192

 
—

 
195

Whitcraft LLC(5)
One stop
 
L + 6.25%
 
 
N/A(6)
 
4/2023
 
—

 
(1
)
 
—

 
—

Whitcraft LLC(5)
One stop
 
L + 6.25%
 
 
N/A(6)
 
4/2023
 
—

 
(2
)
 
—

 
—

 
 
 
 
 
 
 
 
 
 
49,396

 
48,803

 
4.8

 
46,667

Automobile
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Dent Wizard International Corporation*
Senior loan
 
L + 4.00%
(a) 
 
6.10%
 
4/2020
 
4,488

 
4,472

 
0.5

 
4,488

Grease Monkey International, LLC*^
Senior loan
 
L + 4.75%
(a) 
 
6.84%
 
11/2022
 
4,875

 
4,822

 
0.5

 
4,875

Grease Monkey International, LLC
Senior loan
 
L + 4.75%
(a) 
 
6.73%
 
11/2022
 
76

 
76

 
—

 
76

Grease Monkey International, LLC
Senior loan
 
L + 4.75%
(a) 
 
6.84%
 
11/2022
 
26

 
25

 
—

 
26

Grease Monkey International, LLC(5)
Senior loan
 
L + 4.75%
 
 
N/A(6)
 
11/2022
 
—

 
(2
)
 
—

 
—

Quick Quack Car Wash Holdings, LLC#
One stop
 
L + 6.50%
(a) 
 
8.59%
 
4/2023
 
8,773

 
8,668

 
0.9

 
8,686

Quick Quack Car Wash Holdings, LLC
One stop
 
L + 6.50%
(a) 
 
8.57%
 
4/2023
 
50

 
49

 
—

 
50

Quick Quack Car Wash Holdings, LLC(5)
One stop
 
L + 6.50%
 
 
N/A(6)
 
4/2023
 
—

 
(6
)
 
—

 
(5
)
  
 
 
 
 
 
 
 
 
 
18,288

 
18,104

 
1.9

 
18,196

Beverage, Food and Tobacco
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Abita Brewing Co., L.L.C.
One stop
 
L + 5.75%
(a) 
 
7.84%
 
04/2021
 
7,086

 
7,007

 
0.7

 
7,086

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

 
—

 
—

 
—

C. J. Foods, Inc.*^
One stop
 
L + 6.25%
(c) 
 
8.58%
 
05/2020
 
8,603

 
8,539

 
0.9

 
8,603

C. J. Foods, Inc.^
One stop
 
L + 6.25%
(c) 
 
8.58%
 
05/2020
 
651

 
648

 
0.1

 
651

C. J. Foods, Inc.
One stop
 
L + 6.25%
(b)(c) 
 
8.52%
 
05/2019
 
345

 
342

 
—

 
345

Cafe Rio Holding, Inc.^
One stop
 
L + 5.75%
(a) 
 
7.84%
 
09/2023
 
10,396

 
10,238

 
1.1

 
10,396

Cafe Rio Holding, Inc.
One stop
 
L + 5.75%
(a) 
 
7.84%
 
09/2023
 
80

 
79

 
—

 
80

Cafe Rio Holding, Inc.
One stop
 
P + 4.75%
(f) 
 
9.75%
 
09/2023
 
30

 
28

 
—

 
30

Cafe Rio Holding, Inc.(5)
One stop
 
L + 5.75%
 
 
N/A(6)
 
09/2023
 
—

 
(3
)
 
—

 
—

Firebirds International, LLC*
One stop
 
L + 5.75%
(a) 
 
7.82%
 
12/2018
 
1,049

 
1,047

 
0.1

 
1,049

Firebirds International, LLC*
One stop
 
L + 5.75%
(a) 
 
7.82%
 
12/2018
 
295

 
295

 
—

 
295

Firebirds International, LLC^
One stop
 
L + 5.75%
(a) 
 
7.82%
 
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) 
 
7.07%
 
12/2023
 
2,161

 
2,131

 
0.2

 
2,161

Flavor Producers, LLC
Senior loan
 
L + 4.75%
(c) 
 
7.09%
 
12/2022
 
2

 
1

 
—

 
2

FWR Holding Corporation^
One stop
 
L + 6.00%
(d) 
 
8.14%
 
08/2023
 
5,285

 
5,217

 
0.6

 
5,285

FWR Holding Corporation
One stop
 
L + 6.00%
(b)(d) 
 
7.96%
 
08/2023
 
65

 
63

 
—

 
65

FWR Holding Corporation
One stop
 
L + 6.00%
(a)(f) 
 
7.96%
 
08/2023
 
22

 
21

 
—

 
22

Global Franchise Group, LLC*
Senior loan
 
L + 5.75%
(a) 
 
7.84%
 
12/2019
 
3,306

 
3,285

 
0.3

 
3,306

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

 
—

 
—

 
—

Global ID Corporation#
One stop
 
L + 6.50%
(c) 
 
8.83%
 
11/2021
 
5,157

 
5,113

 
0.5

 
5,157

Global ID Corporation
One stop
 
L + 6.50%
(c) 
 
8.84%
 
11/2021
 
72

 
70

 
—

 
72

Global ID Corporation
One stop
 
L + 6.50%
(c) 
 
8.83%
 
11/2021
 
9

 
9

 
—

 
9

Hopdoddy Holdings, LLC
One stop
 
L + 8.00%
(c) 
 
10.31%
 
08/2020
 
1,311

 
1,303

 
0.1

 
1,311

Hopdoddy Holdings, LLC
One stop
 
L + 8.00%
(c) 
 
10.31%
 
08/2020
 
10

 
9

 
—

 
10


See Notes to Consolidated Financial Statements.
8



Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
June 30, 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) 
 
10.30%
 
08/2020
 
$
3

 
$
2

 
—

%
$
3

Mendocino Farms, LLC(5)
One stop
 
L + 8.50%
 
 
N/A(6)
 
06/2023
 
—

 
(2
)
 
—

 
(2
)
Mid-America Pet Food, L.L.C.*^
One stop
 
L + 6.00%
(c) 
 
8.33%
 
12/2021
 
10,780

 
10,684

 
1.1

 
10,780

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

 
(1
)
 
—

 
—

NBC Intermediate, LLC^
Senior loan
 
L + 4.25%
(a) 
 
6.35%
 
09/2023
 
2,119

 
2,101

 
0.2

 
2,119

NBC Intermediate, LLC
Senior loan
 
L + 4.25%
 
 
N/A(6)
 
09/2023
 
—

 
—

 
—

 
—

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.31%
 
05/2021
 
8,379

 
8,260

 
0.9

 
8,379

Purfoods, LLC
One stop
 
N/A
 
 
7.00% PIK
 
05/2026
 
116

 
116

 
—

 
118

Purfoods, LLC
One stop
 
L + 6.00%
(a) 
 
8.05%
 
05/2021
 
65

 
64

 
—

 
65

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.33%
 
05/2021
 
39

 
39

 
—

 
39

Purfoods, LLC
One stop
 
L + 6.00%
(c) 
 
8.33%
 
05/2021
 
30

 
30

 
—

 
30

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.33%
 
05/2021
 
24

 
23

 
—

 
24

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.33%
 
05/2021
 
15

 
15

 
—

 
15

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.33%
 
05/2021
 
15

 
15

 
—

 
15

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.33%
 
05/2021
 
14

 
14

 
—

 
14

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.33%
 
05/2021
 
11

 
11

 
—

 
11

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.33%
 
05/2021
 
11

 
11

 
—

 
11

Purfoods, LLC^
One stop
 
L + 6.00%
(c) 
 
8.33%
 
05/2021
 
10

 
10

 
—

 
10

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

 
(1
)
 
—

 
—

Rubio's Restaurants, Inc.*^
Senior loan
 
L + 5.25%
(c) 
 
7.58%
 
10/2019
 
11,203

 
10,985

 
1.2

 
11,203

Uinta Brewing Company^(7)
One stop
 
L + 8.50%
(a) 
 
10.59%
 
08/2019
 
3,725

 
3,716

 
0.3

 
2,980

Uinta Brewing Company(7)
One stop
 
L + 8.50%
(a) 
 
10.59%
 
08/2019
 
693

 
691

 
0.1

 
547

 
 
 
 
 
 
 
 
 
 
83,282

 
82,320

 
8.4

 
82,391

Broadcasting and Entertainment
 
 
 
 
 
 
 
 
 
  

 
  

 
 
 
  

TouchTunes Interactive Networks, Inc.^
Senior loan
 
L + 4.75%
(a) 
 
6.84%
 
05/2021
 
1,451

 
1,447

 
0.2

 
1,458

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Buildings and Real Estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brooks Equipment Company, LLC*^
One stop
 
L + 5.00%
(c) 
 
7.31%
 
08/2020
 
21,096

 
20,984

 
2.2

 
21,096

Brooks Equipment Company, LLC*
One stop
 
L + 5.00%
(c) 
 
7.31%
 
08/2020
 
4,478

 
4,457

 
0.5

 
4,478

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

 
(7
)
 
—

 
—

Jensen Hughes, Inc.#
Senior loan
 
L + 4.50%
(a) 
 
6.58%
 
03/2024
 
500

 
497

 
0.1

 
500

Jensen Hughes, Inc.#
Senior loan
 
L + 4.50%
(a) 
 
6.59%
 
03/2024
 
153

 
151

 
—

 
153

Jensen Hughes, Inc.
Senior loan
 
L + 4.50%
(a) 
 
6.59%
 
03/2024
 
2

 
2

 
—

 
2

MRI Software LLC^
One stop
 
L + 6.00%
(c) 
 
8.34%
 
06/2023
 
23,743

 
23,186

 
2.5

 
23,743

MRI Software LLC*^
One stop
 
L + 5.50%
(c) 
 
7.84%
 
06/2023
 
13,778

 
13,642

 
1.4

 
13,778

MRI Software LLC^
One stop
 
L + 5.50%
(c) 
 
7.84%
 
06/2023
 
358

 
355

 
—

 
358

MRI Software LLC#
One stop
 
L + 5.50%
(c) 
 
7.84%
 
06/2023
 
296

 
293

 
—

 
296

MRI Software LLC#
One stop
 
L + 5.50%
(c) 
 
7.84%
 
06/2023
 
195

 
192

 
—

 
195

MRI Software LLC^
One stop
 
L + 5.50%
(a) 
 
7.56%
 
06/2023
 
165

 
163

 
—

 
165

MRI Software LLC(5)
One stop
 
L + 5.50%
 
 
N/A(6)
 
06/2023
 
—

 
(3
)
 
—

 
—

MRI Software LLC(5)
One stop
 
L + 5.50%
 
 
N/A(6)
 
06/2023
 
—

 
(7
)
 
—

 
—

 
 
 
 
 
 
 
 
 
 
64,764

 
63,905

 
6.7

 
64,764

Chemicals, Plastics and Rubber
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Flexan, LLC*
One stop
 
L + 5.75%
(c) 
 
8.08%
 
02/2020
 
2,316

 
2,299

 
0.2

 
2,316

Flexan, LLC^
One stop
 
L + 5.75%
(c) 
 
8.08%
 
02/2020
 
1,088

 
1,083

 
0.1

 
1,088

Flexan, LLC
One stop
 
P + 4.50%
(f) 
 
9.50%
 
02/2020
 
11

 
11

 
—

 
11

 
 
 
 
 
 
 
 
 
 
3,415

 
3,393

 
0.3

 
3,415

Diversified/Conglomerate Manufacturing
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Chase Industries, Inc.#
Senior loan
 
L + 4.00%
(c) 
 
6.36%
 
05/2025
 
6,870

 
6,752

 
0.7

 
6,836

Chase Industries, Inc.(5)
Senior loan
 
L + 4.00%
 
 
N/A(6)
 
05/2023
 
—

 
(2
)
 
—

 
—

Chase Industries, Inc.(5)
Senior loan
 
L + 4.00%
 
 
N/A(6)
 
05/2025
 
—

 
(4
)
 
—

 
(1
)
Inventus Power, Inc.*^
One stop
 
L + 6.50%
(a) 
 
8.59%
 
04/2020
 
7,307

 
7,285

 
0.7

 
6,577


See Notes to Consolidated Financial Statements.
9



Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
June 30, 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 - (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventus Power, Inc.
One stop
 
L + 6.50%
(a)(c) 
 
8.68%
 
04/2020
 
$
230

 
$
228

 
—

%
$
194

Onicon Incorporated*^#
One stop
 
L + 5.50%
(c) 
 
7.83%
 
04/2022
 
18,186

 
18,040

 
1.9

 
18,004

Onicon Incorporated(5)
One stop
 
L + 5.50%
 
 
N/A(6)
 
04/2022
 
—

 
(4
)
 
—

 
(10
)
PetroChoice Holdings, Inc.^
Senior loan
 
L + 5.00%
(b)(c) 
 
7.10%
 
08/2022
 
1,737

 
1,702

 
0.2

 
1,737

Plex Systems, Inc.*^
One stop
 
L + 7.50%
(a)(b) 
 
9.56%
 
06/2020
 
18,797

 
18,612

 
1.9

 
18,797

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

 
(16
)
 
—

 
—

Reladyne, Inc.*^
Senior loan
 
L + 5.00%
(c) 
 
7.31%
 
07/2022
 
16,921

 
16,721

 
1.8

 
16,921

Reladyne, Inc.^
Senior loan
 
L + 5.00%
(c) 
 
7.34%
 
07/2022
 
173

 
171

 
—

 
173

Reladyne, Inc.
Senior loan
 
L + 5.00%
(b)(c) 
 
7.10%
 
07/2022
 
142

 
141

 
—

 
142

Reladyne, Inc.(5)
Senior loan
 
L + 5.00%
 
 
N/A(6)
 
07/2022
 
—

 
(3
)
 
—

 
—

Source Refrigeration & HVAC, Inc.#
Senior loan
 
L + 4.75%
(c) 
 
7.11%
 
04/2023
 
9,476

 
9,371

 
1.0

 
9,382

Source Refrigeration & HVAC, Inc.
Senior loan
 
P + 3.75%
(f) 
 
8.75%
 
04/2023
 
67

 
65

 
—

 
65

Source Refrigeration & HVAC, Inc.(5)
Senior loan
 
L + 4.75%
 
 
N/A(6)
 
04/2023
 
—

 
(4
)
 
—

 
(4
)
Sunless Merger Sub, Inc.#
Senior loan
 
L + 5.00%
(a) 
 
7.09%
 
07/2019
 
1,381

 
1,385

 
0.1

 
1,381

Sunless Merger Sub, Inc.
Senior loan
 
P + 3.75%
(f) 
 
8.75%
 
07/2019
 
303

 
303

 
—

 
303

Togetherwork Holdings, LLC#
One stop
 
L + 6.50%
(a) 
 
8.59%
 
03/2025
 
9,181

 
9,049

 
1.0

 
9,181

Togetherwork Holdings, LLC
One stop
 
L + 6.50%
(a) 
 
8.59%
 
03/2025
 
116

 
114

 
—

 
116

Togetherwork Holdings, LLC
One stop
 
L + 6.50%
(a) 
 
8.59%
 
03/2025
 
108

 
106

 
—

 
108

Togetherwork Holdings, LLC
One stop
 
L + 6.50%
(a) 
 
8.59%
 
03/2024
 
63

 
62

 
—

 
63

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

 
(2
)
 
—

 
—

  
 
 
 
 
 
 
 
 
 
91,058

 
90,072

 
9.3

 
89,965

Diversified/Conglomerate Service
  
 
  
 
 
  
 
  
 
  

 
  

 
  

 
  

Accela, Inc.#
One stop
 
L + 6.00%
(c) 
 
8.33%
 
09/2023
 
5,261

 
5,189

 
0.5

 
5,261

Accela, Inc.(5)
One stop
 
L + 6.00%
 
 
N/A(6)
 
09/2023
 
—

 
(1
)
 
—

 
—

Agility Recovery Solutions Inc.*^
One stop
 
L + 6.50%
(a)