GBDC Golub Capital BDC

David Golub Chief Executive Officer
Ross Teune Chief Financial Officer
Greg Robbins Managing Directors
Jon Simmons Managing Directors
Finian O'Shea Wells Fargo
Ryan Lynch KBW
Robert Dodd Raymond James
Call transcript
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Welcome to the GBDC's June 30, 2020 Quarterly Earnings Conference Call.

Before we begin, I would like to take a moment to remind our listeners that remarks made during this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in GBDC's filings with the SEC.

For materials, the company intends to refer to on today's earnings conference call, please visit the Investor Resources tab on the homepage of the company's Web site and click on the Events/Presentations link. also Resources the section. is in Web release Investor the earnings available company's on site GBDC's

call Golub, As recorded Capital I the for reminder, BDC. replay to a this purposes. will call now of Executive Officer Chief is being over Golub David turn

David Golub

We'll virtually rest Officer ones Managing and Thank joined the and your We earnings throughout the and Simmons, everybody, presentation all both you Greg at quarter team I we our Hello challenging Teune, these be Golub times. call. for hope today's site. earnings release and Ross Ingrid. morning, loved ended thanks our for Robbins by referring you, us. Golub Capital are issued to our Directors an Capital. safe XXth joining and on of posted and in that am today Chief we June the Financial This presentation press that Jon Web

headlines. Let two me start with

fiscal we The were income first headline share QX EPS net was on XXth. per the filed was with share investment NAV $X.XX, consistent Adjusted is was and per that adjusted July GBDC's results $X.XX for $XX.XX. estimates

portfolio On we their After themes our through outlined first, headline going GBDC’s companies. stepped phone. go by sub The performance sponsors fiscal generated drivers performed with believe key to and GBDC’s beyond our were the of to reviewing adjusted U.S. support third for the on detail questions. in especially of results performance results ones depressed The start good is quarter help colleagues my and and portfolio generally the income that, than credit I'm fiscal we've we'll that sooner fiscal began portfolio in sectors; then demonstrated a up the QX to that three economy lot take the for strong quarter; in I'm equity going QX. net strong. drove investment underwriting results, have X, fiscal resilient from the portion COVID GBDC's Slide meaningful companies second, second generally solid impacted better expected, expected; strong third, including that than reopening of private QX your reversal unrealized losses

on these elaborate me three. each Let of

economy did First, risk summer. mid and assessments reopened than a When by we expected. reopening the faster April, late our March case base we in our meaningful was

Our Labor Day downside and upside bit case June. of was after the was case our a end

substantial reopening In in saw fact, we May.

gave we maybe and from too earlier the is reopening portfolio. Dr. boost to standpoint many in borrowers believe right was this a soon COVID. controlling the Fauci substantial But Now of GBDC’s

COVID borrowers theme expected, GBDC’s subsectors. Second especially than general, those within portfolio, in impacted better in performed

based care, five You'll recall more earnings from In care, and obligors industry dental subsectors to our expected. takeout Internet where models. to retail. subsectors these retail focused COVID than saw eye general, obligors ways open and GBDC’s we of impact; industry of restaurants, quarter pivoto, presentation most of cut encouraged franchises that fitness many QX, in fiscal curbside fiscal delivery, restaurant that we’re In GBDC’s stay costs emphazie second see found on risk to to performed or we to better

stronger industry have obligors also during our we time Some general expect. of the and eye quarter. gains posted and than period dental sales a the actually in subsectors obligors better for care of were same-store these And in closed opened who

to that to them. be address are have beginning many sponsors worried private of to up our sufficient theme, We COVID they so April and able equity portfolio stepping support generally at Third problem or would companies. children March bandwidth that wouldn't sponsors, in the have their capital

strength reflect the are results fiscal sponsors. three seeing executives capital. and of borrowers, QX think operating in and many this our credit contributing not worries reflects the sponsors out. strength those sponsors for We with of So Golub relationships these cases Capital's of expertise, We're far, GBDC's themes. those playing time, the our strength

we'll On over further course hand impacts the the today's of right side presentation. of that on we've highlighted X, discuss Slide four GBDC

with internal performance a portfolio turn of improved ratings first Slide as those start for Let's impacts, GBDC the X. to Please the whole.

those the in at loans categories December XX performing improved our of materially highlighted presentation XXth, XX.X% at XX June expectations. performing Category recall expected last that two from quarter. three we than to in borrowers You’ll or expectations quarter ended or which the one perform of four March in from expectations, the downward percentage The migration our and with are underwriting than ratings the at XX. to portfolio consistent unchanged portfolio category performing In performing earnings was categories saw and three, value better internal fair at performance March at that quarter's in ratings. expectations the the of portfolio below we are essentially better performance are loans below increased X.X% five, to are

those to decreased. of in XX.X% the the four June loans are five increase of percentage saw we portfolio XX, the at Even XXth. three portfolio portfolio XX.X% loans June below XX% XX, the categories in one at Category performing at the of categories XXth. at expectations, went of and portfolio better, materially XX.X% March of two, loans from value fair at from the Specifically portfolio to and March down

want While gloss typically higher encouraging, we I the COVID. still than put the the is want of But rated to ratings portfolio the risk three don't saw pre context. to improvement in is range fact that proportion difference in I the over that

When triggers a to oversight. increased scrutiny to of and Given today's migrates level an it unusually uncertain to loans automatically environment, we're loan three, category three. quick downgrade category

of breadth is Casing to down that of road. or of that subset four Capital point migrated take outcomes of the this March problems or designed identification quarter categories the problems always of five. approach in rated Golub early leads three platform. and to quarter the going are We've full resources GBDC’s material the to to loans defaults XX depth occur. Our up the three mean Category potential being doesn't necessarily and advantage losses believed better

financial impacted themes mentioned discussion our fiscal continue of fair to results. how saw point to that in brief, discussion results. that back losses. value Let's We'll GBDC's QX earlier nonaccruals increased total a usual low. new in losses of investments the reversal we We remain as But highlighted Net percentage remained modestly our of and at realized X%. come that in nonaccruals GBDC's we key also low unrealized

dilution realized column per unrealized high there, of in NII X. You We the $XX.XX, losses quarter very reversed in per unrealized add From of per adjusted share the we amount rights deduct offering. that during low realized on net NAV the credit see both, fiscal share the were gains And meaningful net share. $X.XX improvement losses in share. of $X.XX was per per the March at the with in pro $X.XX of net the loss unrealized forma a can dividend per driver NAV you see unrealized can the the gains. that's big NAV QX share. next of fiscal $X.XX XX The gains in Slide Net share bridge and low our start We from for of QX.

all want that, approach let to for being describing to who microphone more us offer unrealized Now, job on of we spend hand do task. as I losses Greg this going a an continue this And these to to our update. minimizing me time and about losses. our see to the realized Robbins little generating call is

Greg Robbins

Thank you, David.

portfolio senior the while investment strategic GBDC’s investments Let's and start navigating suggest investment goals fiscal secured three second, is opportunities. and about reviewing We Slide on has highly believe through and on pursued, lien time GBDC's strong existing QX supporting its enhancing results by new GBDC COVID-XX credit Last sheet proactively XX. companies it's first, our response incremental COVID-XX key balance third, attractive capitalize to to managing talked that first preparing strategy amendments; portfolio; working. we fortifying diversified crisis;

a XX has at portfolio left starting the portfolio point, investments The portfolio XX size top value. XXth. average that As large, an XXX the June portfolio shows than basis the points of GBDC's at granular the structure. and GBDC's remain capital of less fair shows diversified, as the of overall over composition data investment Slide of The on focused with of

are was Most COVID-XX, we portfolio GBDC's On inception of of recession relatively retain By to the COVID-XX In focused particularly most scenario. entertainment, on see cases, will less companies from resistant. that than industries token, also in XXth a services, investment at as same proactive right, focused be of the on believe management hard sectors we since airlines, lending portfolio identified we services consisted of the We portfolio roughly borrowers we business to of like by these designed industry in resilient. software, insulated portfolio the XX% and from COVID-XX portfolio and you believe X% value, the XX% energy hotels, enterprise downside insulated others. financial areas the of like can consisted know have in even been more. investments in hit has Over COVID-XX. our June less subsectors

described three their part plans. strategy Turning to third, develop Slide a first, proactive management portfolio execute recall and you'll second, gather XX, that strategic plans we strategic for information,

also junior March, are with three teams for already produced and borrowers. impacted borrower The we now working meaningful first implementing and our we strategy We're plans Over period since lenders. strategy game capital information management phase has the most and with gathered our and in of results. each dealt sponsors,

executed team a Our enhancing define equity any improved credit enhancing We the an amendments infusion terms as XX incremental by pricing involving than sponsor. increase, more has or amendments. credit documentation

with to Slide its activities XXth, capital GBDC of the meant XX June amended end. and million that has $XXX in GAAP coming range. engagement leverage sheet. times, shows form we've companies to in cash was increase the only their leverage payments times. examples and the capacity the Regulatory low in to proactive provides the balance GBDC target long-term two liquidity optimize quarter less facility at late of million XX our support illustrative end and Stanley expect on $XXX credit degree how its steps in X.XX encouraging GBDC from was of than Morgan which X.XX for fortified borrowing defaults types to Our and at completed quarter. $XXX we Slide months. On also enhancing the complete had debt borrowing sponsors interest We of took June their credit capacity of had is portfolio principal of structure. one million.

we facilities Wells Fargo fully were cost wind also SLF repaid and two last terminated with finally, low million We in CLO down. the credit week. new And priced a that $XXX

initiatives, GBDC has of on a in and and As attractive GBDC to This position substantial flexibility great result puts capitalize a flexibility firepower these firepower. opportunities.

market enhanced events of Golub after has powerful the leverage shareholder recession. advantages, spreads, of saw As improved as global environment, crisis, market Lower illustrate We capitalize dramatically decreased to lender much last out likely financial components returns XX, to illustrated will and believe the we've us expect forward. leverage, opportunities. recent and quarters we the to come will downside significantly GBDC we what on see able higher environment. XX, those levels are like the deliver covenants Slide was and premium we from Slide lead discussed believe on sustained the help a Capital on And protection, current competitive which going required for

detail, the So hand in it Simmons results through for more XXth to let ended Jon me June quarter our with that, to over financial go Jon?

Jon Simmons

Gregory. Thanks,

share which financial of that, We’ll our As measures. in further we side seek them the appropriate related think results. hand impact the the the refer strip indicators in we've presentation. presentation, I'm quarter, addition Adjusted as dividend. Slide $X.XX. net right This at remarks. was the we our that Adjusted adjusted the performance quarter where David in call for page. adjusted let's net quarter the and to the per results refer going unrealized The the and with adjusted unrealized the out This in opening $X.XX. and off These unrealized to GAAP to or consistent to column quarter was detail, mentioned in for to compares purchase per financial better before note to recorded expectations non-GAAP driven the an share consistent write They’re our evaluate with described the investment earnings gain look on and appendix it credit in XX March unrealized per about loss $X.XX reasons adjusted the measures, realized quarter net losses with line June the income With quarter call quarterly provided gain was income turn measures realized $X.XX of his more talk our earnings compares share. amortization. for quarter. net we the are and a per of throughout conference for also realized and this primarily investor June in reversal XXth Adjusted please share share, premium March to they're how $X.XX of to as merger and non-GAAP as the of GCIC measures, by to the loss that of the for for the per certain losses prior share we per reminder, was of

on a Our August share adjusted distribution earnings XXXX, distribution dilution of an dividend the net of is our quarterly historical in On And X% offering. at our go asset to of from September shareholders results of quarterly $X.XX our quarterly annualized we this detail. with over Board X, factors XXXX, hand the as rate the that, through XXXX. per Ross? a was declared on of the and to offset rights distribution pay NAV. call share, paid quarter, dividend more $XX.XX, per to approach $X.XX With record finally, in value to X, I'll by XX, June Ross per XXth June The share. excess in of approximately which September consistent the XXth, payable distributions of seeking of

Ross Teune

Jon. thanks, Great,

in This fair sales highlights ended total of investments by XXth. and at exits activity, $XX.X X% for value $XX.X quarter total to slide million million the increased appreciation of and other million. $XX.X Slide and June XX. originations investments portfolio Turning or of our total unrealized Factoring

in undrawn June XXth, million on of overall commitments of context of and small $XX.X the of loans. As undrawn term balance draw commitments had These unfunded $XX.X revolver we are and million GBDC's liquidity delayed commitments sheet position. relatively

on new table, weighted average floating quarter. on of of rate at shown X.X% new investments rate average weighted the As prior LIBOR and X.X%, both spread bottom the the of the from investments the over increased

average interest new investments a based of is the the As at on interest time weighted reminder, contractual the rate on rate funding.

rate has one an at be largest top our LIBOR current would GBDC's average XX For XX calculated to of points. consistent investment LIBOR, our than shows loans impact variable portfolio contractual quarter-over-quarter, LIBOR loans, floor. remained highly portfolio continuing slide over any overall diversified the this the bottom The spread using remained of that by investment shows less rate with and size of with Slide of the that basis The by stop type category XX%. represent mix investment obligor

first Turning to resilient believe Slide defensively senior and rate XX. what XX% we be in of our investment portfolio secured to positioned remains lien in loans floating industries.

Turning primarily XX. decline interest of yield income for and line, in line investment on quarter the income focusing premium. to on The yield fees income income spreads origination net for the including includes first blue XX discounts, points or blue fees This investments, by graph The Slide the or line. decline summarizes due investment basis yield the amount light purchase decreased yield the the quarter, to also XX which the The but basis earned and by portfolio the and LIBOR. of X.X% June the LIBOR. to quarter, ended upfront the to price amortization to fee represents during actual XXth in dark X.X% excluding the decreased due modestly and points amortization continued

to the in the in LIBOR steep the not investment X% of as subject decline loans most as decline with were income bottom as shown nearly yield the the the and However, on floor yield slide. labor of income

XX of basis LIBOR our because a to decreased hand, points our debt subject rate not blue are average the line, other or facilities debt the by aqua X.X%. cost variable floor, On weighted to

to between Flipping respectively and XXth. As basis line, of but X.X%. investment increased increased spread, to at X% investment debt our a XX which income investment low cost slides, by difference as and percentage non-accrual debt, the is green remained weighted of the total result, June value next net a the modestly cost two of the points fair and yield the average investments to X.X% net as a

investments the addition non-accrual. as disposition investments remained the number were by two two at of non-accrual XX to the investments the quarter, of non-accrual offset of During

result of company in performance three portfolio decreased As portfolio our open June his at fair stronger scale and of a performance, discussed to of the investments the as of David rated internal commentary, rating percentage as XX.X% value XXth.

As value a at quarter. our reminder, valuation firms least of independent XX% investments each

was the ended portfolio investments income statement independent the Slides and the balance valuation XX%. months company For XX as three firms sheet over June for quarter of percentage on XX June further the by XXth, of provide and and total details ended our XXth. valued

XX. The our returns the timeframe. quarterly on our and years, five as equity Turning the Slide as quarterly summarizes the bottom over distributions, the our well to same graph summarizes distributions top past special the on regular graph over and

Turning our returns on the since slide available through restricted and liquidity and availability summarizes of The SBIC shareholder strong XXth subsidiaries. and of in investment to our our Slide long form unrestricted X, facilities illustrates June capacity our this graph as our next debentures credit IPO. history of revolving cash,

Gregory some Stanley which to As increased highlighted, liability previously facility of the full the credit term credit to structure included $XXX million. quarter, we amendment the borrowing Morgan made which million facility, the the from through capacity $XXX during revolving enhancements our to

remarks. facilities capital. underlevered. well on the the we the repaid I'll summarizes SLF as as for of June it to and turn focus as our of addition, In and terms XX reinvestment of debt back credit facilities, debt periods that, which terminated two some sources stable With and XXth, long-term significantly were Slide passed closing our diversified, David

David Golub

Ross. Thanks,

was a post our COVID made had investment good strategy. progress we strong fiscal solid GBDC income up, on and sum to So executing Net QX.

number clear in competitive go. the potential of attention quarter, country. taken got signs worried for the of want turn to message fortress encouraging the perhaps even We're COVID Capital that to to the a got while fiscal And mindful scenarios. we've trip elevated today spending saying potential saw that about to to We're a bus indirect possibility We've parts consumer Q&A, balance counts in more large we We're solid Before of the this GBDC has be want steps I case ways restrictions, we and the think to The we We've in effects lockdowns. do you more of careful third paying of platform. of leave range business COVID, we strategy. wide changes of we've of sheet. prepare is form a to prudent the with particularly in investment. a access in got Golub advantages still

GBDC very we As for let's positioned. is think that, With a well the line result, open questions.


[Operator you Thank Instructions].

comes line O'Shea with Finian question proceed your question. first Please of from Our Fargo. Wells our with

Finian O'Shea

afternoon. question. David, for my start with payout. to good dividend Thanks Hi, first taking the

it Looking threshold. course will few way of next like model looks that there's no support payout at longer equity base quarter’s But moving the the on here, the will that parts. things a the settle hurdle

to kicks recoup and me road going dividend if Correct dividend you'd I'm fee about to the $X.XX could as unrealized through some have in if losses? But more the thinking coverage go thoroughly incentive that wrong change forward? you through how the do So your you level on all anticipate this.

David Golub

a there of right. were think knew policy And parts. we number of parts. moving $X.XX, moving when we a set bunch There at the are the I So dividend you're

a progress going that fiscal continued level be are the I that. think We case.And we're of optimistic in trends thought up share and going makes forward supportive in QX cautiously $X.XX that per that moving that made would sustainable. to see the to we've we're NAV

the in time. we're on point we unrealized Finn, But sustainable this know, focusing be track NAV restoring right process, not over we're in can to as the and and gains think a through that uncertainty, ultimately, upon can sure toward that's on And much. getting the that's our level but unprecedented increasing right $X.XX you where And period on think per of unrealized I losses track of share I history. So the here. our a build is nobody only

COVID, slowly, upward dividends we direction. change time. to over cautiously is until it an And was hit in with history consistently Our got

Finian O'Shea

give that. light terms you you're at handling going you can market. And on out book in of appreciated position, there But understandably provide going you're of -- now COVID color looking assuming forward, exposed this light and Obviously, the originations were your favorable the and that in on quarter. offense, a pretty all right your

just the you're is high what for seeing, up origination we level So opportunity any building on back the and how you guys? and about color pipeline think should

David Golub

that more short originations So us we're seeing green in the and is, in prospects months. for shoots increased optimistic answer about be market to leading is the somewhat yes, M&A coming

on a in last and uncertainties COVID discussed and we not and near sale to value uncertainty that based As unless had to reaction companies chose sellers of not the they the M&A surprising. so. shutdown to were market, Sellers market. was couldn't quarter. early the reasons The bring it's do context Buyers of strong agree for really

resistant. Gregory call With see post large months and recover We're we're at yet? improvement now. But better M&A that in is increase COVID industries and a what terms of I and normal opportunities, financing be holding, we a the of No. the striking which look documentation back quality the recent think of an we're couple with tend seeing the alluded how pattern it opportunities. results we're that's a And these seeing that to lower in activity months to higher Is I ago. quite a some think dislocation, from we seeing to proving seeing leverage, offer to spreads say, proportion opportunities to improved as of combination are of is and


with proceed Our your next question. Ryan line from Please question comes the of Lynch with KBW.

Ryan Lynch

environment that the on that up shows you leverage of question. mean First have marketing recession. coming XX last out how indication one, good kind a of went Slide I of following levels

And and of once come happening potentially, obviously up. when some there's because quick accelerate point recovery, this which you stop is be We a don't different, could just given think one shutdown. open so feels that downturn, structures that the with think and this covenants I'm good really than like this recovery that could downturn play a multiple years, over all at multiple we know play last today, pace could the one? if pretty little or that years. of this it that at little do out, from from fully a bit on or occur. economic going deal Versus terms -- Just of slow on and out the recovery this wondering you sudden just then other could differently wondering if today potentially downturn had activity will

David Golub

So don't and question. answer it's great really that. knows to Ryan question, $XX,XXX confidence I with think the anybody

observations. Let it's me very improved lending give that One of lead downturn period opportunities. rare you of a a is, couple dislocation a to doesn't or

an will So how long likely see it I and going lenders question forward. environment attractive we'll is last. it's how think for that's The highly that attractive

some is marketplace So what powder now that the unprecedented is utilized levels of how It is out it dry terms right uncertainties related COVID the a the that a to that one we once attractive lead And helpful. deployment on significantly a that middle has telling who've A a patterning bit whose not by and been XXXX, of let's that all going I in again, and is guide I right I in the recovery hurt and have take would going available due in but Again, is fundraising history before record if tell tends further. think the downturns and seen think this will can fairly be sense to a future, players I'm factors consistent see is be, idea can amount equity in this a to by been probably that spending. now. time don't I only in it lender is to of an can and private the this seen will to unemployment COVID. lived very this it third reasonably zoom is at significant lending is you and reduced deployed. market being happen factors reductions being of that in acceleration one's ease high kind period. an pace argues 'XX. for key impact is are No know. in COVID near number this that's competition not to like at look not What private hurt friendly Ryan But level pandemic supporting equity downtrend are sure those that consistent that for likely good I Well, last. through this you be we're factor capital government response. of with to rates long that, sustained like at think some government it unprecedented how of of now global point going

So we a all scenarios. for need variety of to different plan

the exactly lot heard you've me on of One COVID planning themes is emphasis began about a that for our of on talk since a number different scenarios.

Ryan Lynch

early me give the arises? be the private downturns But credit capital been the were phase do prior further that known if in lien some considering first in of lender. that of can you recovery you when recovery structure running to out on coming more is we’re assume out opportunity on to of of your too coming Yes, willingness at probably that But downturn the of became its as the to funds capital type as strategy. all makes I out GBDC for sense. that downturn, guys top GBDC this strategy phase would we're primarily or a as junior pursue market willing commentary more attractive. GBDC that something, previous you

David Golub

Well, things there. two you you said

junior change to parse I debt lien near if strategy going debt? me let think see toward the that it is no. in BDC is first core I away its Do that bit. me from term let little a senior So Capital can to that The debt answer Golub

likely one going we're that highly lien on and first our stops. it's think sustain focus to I

now. capital of would was, a our Second capital base to ever don't situations. And organization question that, there consider in a right portion have a debt our the in portion investing history of because never as you right part in junior I quite debt? junior as of base, point we out, think I deploying the in market successful say we would meaningful an not we're

Ryan Lynch

Post balance the enough. shape. good to fair be raise, in seems equity your sheet really Okay,

You you liability at you guys powder. are forward? guys going unsecured have changing structure a That lot of your all, evaluating guys dry debt considering, pursuing said, a are portion in principally

David Golub

debt give I layer on calls over this. last prior makes benefits a to time. that think generally we big into We've said And of unsecured of answer So, a the it we're that an answers, believers sense unsecured debt. structure gave earnings on add of I quarter number GBDC's and in the liability

luxury have you right leverage targets. We're we we're in the the at pointed of our now liquidity low of of out, so As rush. operating end no lot

Our to so appropriately, plan on introduction debt time of we're the that other attractive doing and it unsecured terms. pricing is

Ryan Lynch

all Those fair appreciate time I Okay, questions. this enough. the are afternoon. my


Our question Dodd Raymond line proceed of with Robert with the James. your Please question. from comes next

Robert Dodd

when to asked in Ryan, just at given expand maturity, your just Hi, answer you -- a of the the investment period, liability leaving got I guys. facilities that point. bank first I next little their the good looking year. but a period probably you mean mean investment of -- side. the so looks gave, in, David. in appreciate I to to look I not But quarter And be got bit, portfolio shop environment mind we're shape the two the

unsecured just of extend expect would currently that, a be and just factor the timeframes? to the or you're investment ahead reasonable going just not facilities it So those maybe is to and that that in expect to come would

David Golub

of optimal And the question no GBDC. facilities thought timing not enormous we bank great in right is we have can has question structure This it do I relationships of and piece extend facilities, what's for of with our so facility. is to partners. is confidence is just have the as able that debt answer pricing one we. recently extended that issuance is capital Robert, The the The to on changed rate we couple unsecured months. tricky in problem those was last surprisingly fixed Morgan dramatically very if those Stanley being here is have we would long-term important. the answer, The

we we do So, smart to be how want it. very about

for securitization financing, plus was on triple for new LIBOR new AAAs week XXX. last know, that pricing GBDC. a you our a The As post-COVID securitization we bow were priced

on we've of unsecured liability and by is goals the second two keeping low very is the simultaneously. cost. cost stack one made to is and So money maintaining shareholders liability very for adding intent overtime ways low the we're accomplishing One our

Robert Dodd

price completely attractive. underutilized. mean, fair. And is having I ties other it part does CLO yes, That's obviously the look into quite the

because little revolvers If they then you four underutilized, the become efficient you up point weren't do that have unsecured add you two credit that anymore. those expensive to facility a and your SLFs, just terminated bit end

facilities optimum So mean, size business? the the you when to Any if what from I number anything. on that revolver four that color expect for is running and perspective, gets or capacity to continue credit about would stack added the of unsecured

David Golub

you period facilities. credit if think a revolving I of to fewer facilities when total flash includes mean, and bank I Yes. a that probably credit bank has forward capital revolving stack a unsecured, we amount have it smaller

Robert Dodd

I can, If it. it. I second appreciate different topic. Got

of environment add platform emerge easier right You talked an any the plenty on where, haven't to Can us type, add-on mean for being may add the can it and March, are I since require on at for give travel. -- the plane due-diligence due-diligence deployments, I you've in is to an potentially starting may acquisitions? you certainly got nature et you about versus in and color green mean, is how mostly an cetera? due-diligence looking shoots acquisitions, done, because obviously, on where the I be give us you need maybe any gotten expansive now. on liquidity

David Golub

a It's very good Yes. question.

deal do About So for with look you're the with platforms. let's first, large it. been If question deals talk easier that deals going Golub of at historically you Capital very doing deal existing other environment from companies half XXX% to it's and terribly existing activity than right contextualize what's know. some think I borrowers don't is era, and the about if we Aries the about just your and you COVID future the a like or broaden And has it think BDC our to with the past of of don't look we're lot borrowers. in let's different

easier. got due done detailed relationship, the much diligence know know already a the just past. in team, already already company, you've It's the management you've You person in you

portfolio that know just all will industry were be you the for be sectors alluding deal can't do that, activity higher platform Having is existing a and perfect significantly well activity we think going there who absolutely and forward. sponsors because proportion So, said you with going I we will of some to know well, be than new usual new it reasons environment in diligence to. today's

new that for think creates competitive of like dominant I us. advantage players source a

sponsors that the the really you to top would this We have have want in relationships close environment. with

including We and are number areas, particularly expertise domain software, including this of parts a knowledge world. in of attractive have healthcare franchising some that including post-COVID businesses, deep industry in

are really question, So Robert. good questions I think your

I activity term, players to to bit going least particular activity and others. the near investing at it's advantages post going look different pre-COVID give is in investing COVID think over a some to from


with question of Please next follow-up KBW. Our Ryan is your line Lynch questions. a the with from proceed

Ryan Lynch

rating have achieved I a never question. past? grade bit you had that guys unsecured the you attractive I or pursued the you're right balance in just did you had from at track a pursue was to Why never was that enough David, so an never great rating curious if never or but really one defensively given historically rating became to guys guys to were why the historical could desire guys major I'm that of to, just Hey, on always time. your utilize that just willing mentioned know the one that that portfolio. there a the markets you on either investment against, in little case sheet get the position ability agencies easier, have debt more look file you your used record,

David Golub

want don't being look great unsecured agencies. the we to other I depth, that to in into discussions time spend tell you including of past rating a going lot offerings with did in into than

it's But or do. that couldn't we didn't where is don't correct we that your premise think we So are. something I are is point I think key the

in position. of sense prospectively. sheet and pursue to where I our in lot it think makes liquidity an So I a got a We've position we if look the and balance we've got very a unsecured we're at opportunity offering are strong

Ryan Lynch

for follow Okay. the Thanks up.


this at back Mr. Golub, to further will now there the time. are I call turn you. no questions

David Golub

Thank you, Ingrid.

of if to today your you So look that post thank free In you you out. call, feel always, please up interest all once not next reach joining have you us quarter. come again, for attention to with you speaking all And to addressed today. any were partnership. questions Really the I or today's forward and your that appreciate and as with meantime,


and you That call thank We your that your for does conclude participation, I you please line. disconnect today. the ask conference for