Golub Capital BDC (GBDC)

David Golub Chief Executive Officer
Ross Teune Chief Financial Officer
Gregory Robbins Senior Managing Director
Jon Simmons Managing Director
Finian O’Shea Wells Fargo Securities
Paul Johnson KBW
Ray Cheeseman Anfield Capital
Robert Dodd Raymond James
Call transcript
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Welcome to GBDC’s June 30, 2021 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 website www.golubcapitalbdc.com, and click on the Events/Presentations link. also section. the is the website release Resources Investor earnings available Company’s on in GBDC’s

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

David Golub

operator. Managing for us the Director; afternoon, Simmons, Director. the joined and and today. We’ll Financial Officer; we thanks our XXth, to and earnings June be an our Yesterday earnings ended for Ross Jon quarter Teune, Chief everybody, press issued Gregory throughout Hello, I’m presentation Thanks, posted joining referring by Robbins, release call that on our Senior Managing today. we presentation website.

of to are new you to GBDC, those briefly who investment want For strategy. I describe our

review the of the results. for take off June closer results a I’ll to Jon income, quarter strong. since overview providing by the it inception for focus XXth deal be headline a brief is that sponsors. these solid GBDC’s discussing then and to and through today’s then commentary, robust detail let’s to for for key presentation. backed that Gregory Ross loans secured is we that, going each those strong those equity topics GBDC’s to quarter activity. is, detailed go performance provide of first continued senior resilient strong net new questions. We’ll as look ended and been, more on hand start middle-market healthy, of he’ll of With very we’ll companies drivers The performance and closing then providing the and line by a had GBDC are has greater June quarter, strategy for investment results. credit XXth some Gregory? in GBDC’s private lien, results and at open partnership-oriented the Our were investment

Gregory Robbins

David. you, Thank

of $X.XX, was highlight. X. GBDC’s $XX.XX. June slide share share NII and Two ending NAV summarized those $X.XX results Turning per to adjusted quarter on I per adjusted are the X, key EPS want ended strong for was drivers XXth, things was to key The slide

booming economy portfolio across to in on First, right compare of The of the month median Golub The April May XXXX. XX%. XXXX be was of We GBDC’s to would our informative for reflected XXth didn’t them for Golub Report particularly XXXX a we in EBITDA from well. year-over-year year-over-year Strong were XXth, Capital would Market economy XXXX detail hand into Middle GCMMR the to lockdown published We And exceeded comparisons borrowers. more Market positive trends are ago, XXXX listed But, growth four XXXX. looks and April or June striking. May was economy reflected of the April bit different. to a June be growth pre-COVID the growth as at GCMMR profit the which earnings think We’ll of credit it informative, to results go slide. shortly. the May this The our portfolio and thought the more Capital about side revenue and normally quality continued perform Middle approach they strength. and comparing

was Golub Capital activity market middle XXth volume. for Second, was origination June deal quarter a record new new strong. The ended

the record XX, that we December You may time. breaker beat by a June recall that XXXX the at XX% quarter. in the Well, was record quarter ended

Golub by advantages June think leveraging is a the the on the impact of quarter, was elevated robust portfolio Capital growth delivering takeaway in key M&A by the competitive that GBDC’s repayments amidst the we strong GBDC’s platform. While muted originations environment

X starting with summarizes drill listed quarter the the of the ratings. Slide June on down trends right portfolio period. performance GBDC’s in through the internal ended the hand trends in Two quality side key trends credit ratings post-COVID now continued on positive the the slide, internal Let’s performance positive of four our XXth.

perform very First, constituted in of performing few a portfolio number. steady that only underwriting; in in than X remain increase portfolio in loans are loans X, expected corresponding migration and continued expectations X, or are X materially at decrease upward are credit categories or at quality, those at end. X.X% Those are in our category at a companies those categories also better and two below categories to X expectations. the below performing quarter fair performing expectations and value seen We’ve

see X portfolio from as June XXXX XXth, as as XX.X% and the The X year-over-year. of XXth, of X.X% as X/XX. right the was far from Category XX.X year-end line of fiscal from the in XX% of rated points left percentage portfolio the pre-COVID as slide. of ended portfolio of X/XX of normal categories X/XX portfolio of increased the portfolio to of X X/XX an June data can X quarter to of the XX.X% of of in proportion the XXXX around decreased the XX% and our as the at you Specifically, of improvement with

two financial GBDC’s NAV a and increased $XX.XX to indicators of provides as The our Slide of from improvement its The quarter-over-quarter bridge slide but the improving lower X/XX of non-accrual XX% quality: rate year-over-year. gains back credit to realized is discussion indicator continued X X% fact usual shows results. just come gains. that share of investments share per per at unrealized GBDC’s in value second point low, other fair $XX.XX NAV very of This at about was this credit non-accruals key X/XX. remain of net net as We’ll quarter-end. unchanged

realized per with line bridge. were our the dividend. Adjusted net was NII through No losses quarterly during $X.XX, quarter. walk in the recorded share Let’s

gains reflecting the were reversal there gains, adjustment, share, were net premium fact, In unrealized unrealized in of continued $X.XX $X.XX incurred per March per the XXXX realized quarter. excluding losses and purchase the net of share

ended recovered XX, June of XXXX. have of XX% basis, quarter a on unrealized March XXXX, the in the price losses as been recorded fact, XX, In

Finally, in capital On BDC quarter-end. unsecured the that by debt XXXX unsecured strength $XXX shows notes coupon ever the and August to represents achieved time. GBDC’s the offering. GBDC GBDC’s Pro new unsecured X, interest of issuance continued at approximately XXXX, a portfolio third post lowest in of a for have August the us quality enabled rate structure fixed bond debt XX% February slide Company’s X.XX%, completed The million of mature offering, its further capital optimize stack. X of forma the debt

of see in In XXXX have more maturities vast is debt and short, stronger believe no chart GBDC’s You funding or hand expected side the balance to GBDC the until GBDC’s right we is matures can than ever. later. the contractual and the from majority that on slide flexible of sheet XXXX,

at the detail. look the And that, for results June Let’s let our more now to results for quarter walk me hand in the you take Simmons XXth. Jon closer ended Jon? to through call a over

Jon Simmons

Thanks, Gregory. quarter results Slide XX for summarizes XXth. ended the June our

adjusted can You the as that a in see gains. in realized the net our dividend unrealized $X.XX share with and GBDC generated NII adjusted on credit quarterly per our share and that column line results of right was remain strong,

X, net XX, our XXXX a September on asset As as of June September value August to at XXXX share On share, $X.XX $XX.XX. increased stockholders a X, of quarterly XXXX. per of XX, payable distribution to Board result, declared a record our

Turning XX. to slide

quarter. total and the as the X% ended of $XXX.X of as activity, totaled $XX.X quarter $XXX.X million XXth. exits June total factoring million and commitments or After for sales investment during unrealized value investments other well investments by at New appreciation fair portfolio in million increased

originations Gregory As strong, repayments noted, this while elevated. were quarter also were

context undrawn commitments term GBDC’s $XX.X strong balance of As we sheet the and These position. loan revolver are delayed June small of large and of relatively liquidity XX, XXXX, undrawn unfunded in million $XXX.X million had commitments commitments. of draw

remained XX each that of As rate points. the of increased quarter-over-quarter highly on with shows GBDC’s shown of XX% continuing spread weighted by new portfolio Slide size one-stop that LIBOR new average and represent type average diversified bottom GBDC’s portfolio. investment with less remained the XX mix rate than consistent over an slightly loans quarter-over-quarter. investment floating obligor XX basis on on investments portfolio the Slide the table, by shows to investments

XX% and industries. floating we of secured resilient of our portfolio investment senior in loans be lien, XX, positioned to believe what first As in rate defensively June remained

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

Our weighted to line, debt, higher-priced points of debentures in SBIC average by primarily or early cost the aqua prior million due the of XX the $XXX decreased in X.X%, to basis redemption quarter. blue

which basis spread, to between cost that, Ross difference call discussion and results. income to the X.X%. hand by Our points increased of I’ll net With our the of investment line, Ross? to the is quarterly yield investment the XX green over average the debt, weighted continue the

Ross Teune

quarter-over-quarter a percentage and investments two remained fair investments debt to Thanks, and as consistent X%, next value cost of as at X.X% respectively, and June Flipping Jon. low the slides, non-accrual of at total XXth.

the at remained portfolio X company non-accrual number investments. unchanged the During quarter, investments of

commentary, performance, of internal discussed our Gregory the of continued a XXth. as portfolio as fair strong percentage As rating scale, the X.X% in his portfolio X at result decreased of investments rated on value, performance to company June of opening

XX value sheet further each June As XXth. provide three and and income our a balance independent statement months and as valuation quarter. Slides reminder, ended of our XX% of least investments XX at for details on the firms

the graph top history same the Turn five returns returns long XX. Turning the and bottom on equity time distributions This our as quarterly period. to of as the illustrates special our to The slide quarterly since IPO. past strong on summarizes our shareholder distributions over on graph well over years, graph regular our XX. our summarizes slide the

investment have cash XXth, As illustrated, liquidity which strong a various XXXX IPO June XX% over GBDC’s and available of XX since of restricted through with IRR our in summarizes achieved cash, as million credit facilities. remains in capacity investors NAV $XXX availability inception. and capital Slide on

sheet. key in continued We highlights here. side our the right-hand the also of highlight optimizing progress balance Three

Morgan on May rate extend First, on credit our date we Stanley to period borrowings XXXX, revolving from April interest XX, LIBOR XX, May with other plus things, XXXX, one-month maturity XXXX XX, from X, and amended to among the extend plus X.XX% April X, one-month from to, to XXXX, reinvestment XXXX, the facility April reduce the LIBOR X.XX%.

the August up GBDC’s for XX% David? debt a notice under which of mix. to all quarterly of XXXX, XXXX. August most total is lastly, XX, With of of issued we And David of September of the our terms February at rate XXXX, of which debt million of on XXth, as debt on XXXX on $XXX XX, of stockholders. occur Gregory redemption bear notes July that, we issued as distributions capital mentioned distribution recently, approximately share, earlier, $X.XX unsecured notes, I’ll to This plus mature our summarizes redemption our of X.XX% priced to a three-month on LIBOR XXXX. issued Second, And over redeem remarks. summarizes Board the securitization, of record XXth. expected X.XX%. payable his third, And as and unsecured per slide to XX recent $XXX turn X, stockholders funding to on it XX, fixed Slide interest bringing June million a September closing Xrd, are to declared XX

David Golub

and To a realized quarter. enabled sum and unusually origination high the to payoffs. our up, substantial, gains robust very were matched Ross. grow had GBDC despite Adjusted NII portfolio strong unrealized new Thanks, dividend,

and Let me as The talk headline our quarter. take questions. about I’ll is then last outlook, same your the

why about for I’ll COVID time. we’re been start We’ve concerned variants with some We’re cautiously cautious. optimistic.

heard our about X in this You’ve last calls. us talk earnings

right pandemic of tragic COVID of we’re possibility this cases worldwide done, put of to mutations. bear we’re environment millions powerful are us, not fully far reasons I’ll there tailwinds. yet XX% optimism. X. this a of it We’ve in focus people We before, of like seems they has the on That the about GBDC with them hundreds all globe, behind and but we’d as more is spoken for for also said, much around that set vaccinated prepared As from and now believe repeating.

since The is We’ve tailwind credit strong first presentation XXXX. today’s trends positive GBDC’s performance. the March highlighted portfolio XX, throughout

cost. Realized strong. XXXX, from June be a underwriting XX, XXXX have unrealized million at or today XX basis and the low loss annualized portfolio and Our the as proved described, X, to only than netted has pre-COVID months X $X Gregory for less and XX the gains portfolio category to of points. X.XX% rate an That’s loss of minimal X of very and through loans. And losses non-accruals January has

not is before pointing of we’re troubled apparent activity set quarters the the market by be defense Capital middle to Golub in for All M&A tailwind on it’s half going records year. So, three play Two signs second distracted a new second us. set portfolio. robust the of A opportunity the needing last attractive are to to a origination.

advantages for reliability. environment have its deals. and attractive portfolio quality. of believe think has lenders competitive tell Capital on period, without set too stronger sponsor is it’s Golub to than COVID this capturing of and compromising third if compelling early breadth to advantages relationships, industry reputation While GBDC finally, fair year-end, opportunity scale like before a leading tailwind. grown record in of incumbencies, we credit We more our a through we’ll The expertise solutions, share grow this another And

increasing is very Unsecured we debt long-term, cost GBDC debt of tailwind XX% now of in believe flexible. unsecured third any the to goal of has debt and debt GBDC funding our our among liquidity We’ve low-cost substantially opportunities. about lowest while capture debt unsecured stack, mix, highly low. The and that flexibility achieved keeping BDC. cost stack has proportion funding ample GBDC’s is GBDC’s our well-diversified, of and of is the

drive at closer the room which to operating and range have of in Operator, X.XX equity, leverage quarters, high for you. of Thank currently end our that the line to questions. please Company. power coming earnings low the of X.XX help stronger debt times think target We’re range to end would the to we open operate for the even we


line Your with of comes [Operator Securities. the Wells from question first Instructions] Finian Fargo O’Shea

Finian O’Shea

Hi. Good afternoon.

obvious as time First big familiar around ring just your I know, opportunity market the David, remains these Last in this COVID, a on sure transactions? strong. billion around, on comments couple you’re $X were more market billion, these players Can on you is basis. go specifically the the leader in a senior -- $X before And question, you private, comeback were on those, you larger into I’m guess, you time especially of the with. on, touching there’s share, which very and

a your underwriting So, how paper, than do and core you market share it Golub the up? feel that challenge holding -- then, paper how is platform? challenge of market a competitiveness of as that in much think less middle you a the much to is part that do is there, better And second or of terms is

David Golub

for Thanks Sure. Thanks, Fin. question. your

So, $XX multiple we billions. by underwrite first, from Golub to the at we low way of end size context in Capital, that million -- $XX million at range or up loans

quarter, more The we we and million a do and separate began financing the In been small we’ve since closed share stops, mega than not mega be we a a portion Fin, one-stops call $XXX the are billion EBITDA. appropriate. do. what that out, up overall Mega market really one-stop what $XX those one XXXX. the loans what predominance of in on companies one-stops, total generate which million where a of to Those mix representing in pointed remain companies is last relatively we of be you would million are of As leader scene between commitments. XX bit in $XX $X

our calculate approximately is $XX average math on if you in size loan range. So, can the you million quickly that the that, do just

were building scalable at of are previously What great efficient looking market couple buy-and-build portfolio delayed you that’s choices draw many not wasn’t It strategies. where that in the and a sponsors increasingly in of the companies choose months company just They’re needs expansions last a that’s relatively of as of great the way at as loans have a financing That’s using doing transactions of that a transactions. looking lenders. not financial a are one found or $XXX you be One an way could by through menu. we’ve that the drivers six of financing company or of pointed pioneer as loan private in pursued a And that -- been Fin, scale is of is doing $X now so, course changed. on the million. if not recently, from, we’ve of extremely bank debt either as market financing out, transactions sponsor can seen years, key said we’re sponsors one-stop acquisitions in their we’ve one-stop the of serial great direct at doing there large company anymore. And And billion creating looking expanding larger-sized that a transactions, promise. Over excess more serial they’re role had a private series The a and that of company couple as one-stop being serial acquisitions. phenomenon. high in creating means that effective large a company measures syndicated of they alone of broadly Until through by in that a seen time They’re acquisition engineering was loan out, not of and term last point over is acquisitions. this. I’ve

to is players We playing are lenders. view direct product arena. among great always not be that a number in capable loans a that mega we’re need who of the the loans. We’re of that in options loans, opportunity companies, good large It option we smaller but have. are this is of to that terms relative is make the to one-stop and need we My backing there selective. for the very the still the We market for also here, sure -- really leaders, of conditions are very as that pricing sponsors. great just we a other are attractive

the to going always recent around opportunities months. of the others. be we’re area, we course I to niches And within we’ve sector, been So, one one of over best purposely we’re what going one different we attractiveness in see as lending industry And versus evaluating relative moving the be that’s geography direct doing arise in. that think operate

Finian O’Shea

That’s helpful. amount swing your looks equity at a this versus much fair bat the earn you’re low to you leverage, the the have follow-on just such a able on And had to quarter, Thank more least of co-invest. co-investment. a like It you. I historical. dividend on given ability rate one say might often that at equity

thoughts So, the above any on there?

David Golub

in our the equity portfolio consistent co-investments. pretty been We’ve in percentage that’s of

look investor presentation, page you extended been the in X% of to XX an of range our If it’s period time. at for X%

can range, at expect move higher going change end you the I at our point this to of a where that that the we’re toward see. we debt-to-equity meaningful more don’t continue anticipate going mix now, or the that I of range. end low are going to is which that we’re our portfolio, think middle in we’re reasonably the to our to from grow ratio

now. Fin. conditions, subject but on Of to change course, that’s market always Thanks my that’s based expectation


question next Paul the KBW. comes line Johnson Your with from of

Paul Johnson

my Good afternoon, for guys. questions. Thanks taking

just trying the the above rate your right area below to you -- of know goal thoughts X%. your that’s around or end ROE below an this were hurdle rate. hurdle okay I maybe you fee. low of just hurdle, incentive of therefore, would generate get around that operating or earn curious, and I I’m you kind not essentially to your is that the slightly just at end the guys are with, I’m the guess, First, did quarter low even

David Golub


size I that and turn as growth was quarter pre-incentive we’re of a will see is anomaly more in it income. give the My degree high will fee because to think mentioned, net investment an as the going of income was. as portfolio this in was I bit net us of repayments investment the expectation, grow that

see in mentioning. backwards, look the a we respect think as you’re an anomaly I when that bit quarter this we’ll of

good the I or too without for can can provided to taking we much do opposed that. risk. it’s if credit do as Right shareholders, think in think operate now, the I so we we above catch-up can below catch-up,

Paul Johnson

today, Great. think Thanks, I portfolio. then, It’s your I’m your to the Thank portfolio. so of think trying And how seen just of get and you that one you. that slide I thoughts how popularity your lending type growth competitive of lending. XX% we’ve on helpful. a guys maybe deck That’s view very just David. guys that lot market or view you of from Obviously, on landscape? of sort software

ago, deals guys for are evaluate see the that is anything versus several or you quarters today differently you out you So, maybe there that what there new today? looking in

David Golub

let Again, context. me just Sure. some provide

leaders been lending companies a software decade. we’ve So, more sponsor-backed to for in than

the more have I under strong think, our incumbencies relationships, we’ve of we an very a very of transactions built our we in It’s belt have brethren. because area any where expertise. and and competitive that than larger very portfolio strong this sector portfolio strong sponsor

a group have that in think lending. at our it. underwriting software we’re within We We specializes good very team

time have over in we for results area And future outstanding. a opportunity. think that it’s been robust Our software

software years ecosystem, also is continues component back. grow. seeing But, the true in statement the your to fair did that somewhat private area the we’re more competition equity software we that that think side companies, of than is the I ecosystem, that flip

haven’t And any so, changed really approach our software we continue space. to the in attractive We way. find opportunities meaningful very in

of underwriting their to we industry out the software XX in investing continue years but be are more of We high with started been to out and recurring streams revenue companies criteria sorts renewal than high difficult well-integrated with the really have and that clients high-quality mission-critical focused same ago. rates, that on rip tools

Paul Johnson

do returns traditional my first that. in kind of versus in to up your Thanks but evaluate the What it show one-stop second structure? around compressed have loans the investment just market. versus the last seem unitranche structure. of again today two of first for lien I’m lien, market question differently the Got for the lien then, time, new in your lien, those mix, was unitranche seen we’ve doesn’t thoughts traditional over you. proposition loans markets wondering, one-stop the terms just any loan, first maybe you And obviously, senior value

David Golub

transaction, solution standpoint if way the So, in compelling, the the thinking what to And if it we that for it’s and right about a think it’s new answer every time a play proceed is and we’re alternatively lien what we’re looking think right first transaction. at the and we’ll proceed right from or the right we’ll with a for transaction, compelling the is risk-reward solution transaction. with a we for one-stop risk/reward is

to a in and where where I don’t we our to multifaceted We it’s day, financial play. weighted So, To the to don’t the of obviously, average a tell do you find But, we’re the choice make in we Right now, and assess yield discussions At of the choice. with structure continue about to be of would play point, net what’s -- income investment in emphasizing your that spread. solution seeing opportunities. we put lot as the we use test make lot sponsors. it’s to sponsors place. a our that choices right steadiness end our have in that one-stop we what attractive

in compression meaningful debt are I think, you seeing spreads. junior

particular, come Second lien spreads, down. in have

an there. being spreads think the more a And one-stop could seen you as as pressure some well. some putting on on, than putting hybrid pressure as instrument that’s priced so, as suggests one-stop that’s perhaps be continuity change But, a steadiness, more data think that think I I if about


next comes the Your Cheeseman Anfield Ray from of question line Capital. with

Ray Cheeseman

you and the poof there’ll about the challenges steer any I LIBOR perceive get the ready they’re to they’re preferred lines think that? way year there approach as going clients to Is everybody. -- be any going term rolling for P&L? income going on be we Do your any to over everybody the away, SOFR a and in impact now in all do of end of as closer David, we perceive to talking you

David Golub

So, and SOFR. thanks for the question LIBOR about

from I industry Golub may this trade Look, this going think, the in association the at meaningful resources been in ready. sure of We also at I industry still it’s an be agreements question. from year going to sure Board of is think significant risk work changes that resources in we’ll be whatever are I that and involved have significant of standpoint. make you transition are to whenever timing the the I in -- ready. or LSTA, open ensuring the I’m later, borrowers on think a we’ll with the that’s I be to happens loan the confident do very is, serve this our ready to Capital we’re transition work made. amount required but that know LIBOR work. is from that This dedicated say very a standpoint make industry to have a not has lift, not I’m the end a place main Whether an standpoint,

a think risk standpoint, I control. from under it’s quite

Ray Cheeseman

speed higher expect the increased Super, we profit ago. to a above and a category that at of because hear. up beginning, see a year your Based the loans very -- When had, the experience the upon when lousy got that repayments at out has loans good coming expectations, expectations, X glad period obviously, higher number portfolio they’ve of levels? saying outperforming should to X you’ve than higher performs churn, were otherwise you

David Golub


X me above. performing is clarify X one category thing. is performing at or Let and above Category

above not exactly is at significantly. X performing the of in phrased proportion grown how before, they’re that made or and So, has our expectations the this we I’m categories we performing I that statement that’s hope portfolio sure X, meaning

Those under two as the you’ll you June the that. deck, our of back page that’s flip range numbers. If XXXX. see XX% And to of are loans XX, of pre-COVID XX presentation of in our just categories

important which than loans category for an you’re more loans. X think, is point, X category for on I to relevant

expected I X has think be last have I rapid the story main been factor. that than loans saw quickly of other the do don’t I that in think rate than part to category we more the quarter. repayment this And in loans of a categories. that’s think repaid tendency refinanced or more

I make is to the quickly interesting But, X pace think seen we’ve you X, X than very main and an loans think, that in tend rapid the refinance factor do point, X I middle that market that of more category X, the loans. is generally. M&A which

Ray Cheeseman

You good right? lose the ones,

David Golub

nature Yes. credit. the of It’s

Ray Cheeseman

kind and Last through it’s credit of a well unbelievably question, a is done open-ended at Company steering thunderstorm. -- an the you’ve

back going looking I’m just of we funding. to You’ve Is cost is the in for it function it macro to else? or the need next $X.XX? quarters use a we couple to for number environment of lowered the base your to that from, the change, whole are rate $X.XX the organization What shareholders, move something

David Golub

Great question.

recall, you’ll dividend annual our NAV. about rate of to has policy and seek our X% have change We time, seek NAV quarters, prior it to that historically linked over per to, to it over our and I’ve share, about So, talked a been we time. dividend rarely corresponds how increase to an in

to can is continue right now. increasing to of size, in NAV to we NII our increase dividend the raise increase some portfolio north our share, put per see for will It’s to So, gains from net a share. dividend the And unrealized where start us pre-incentive our path and by twofold us our to fee, those realized two $X.XX per to that raise that. and position


from Robert the Raymond James. line Your of next Dodd with question comes

Robert Dodd

the side, liability else the work well. and everything done particularly Congratulations, you’ve as on on all

I you’ve expect do the comfortable obviously, I’m somewhat? little going intended a need just originate debt. you level kind going -- catch-up, kind mean, the moderate repayment What predict your back rate, obviously your into and grow to particularly the On you to about bit. get elevated quarter, to repayments there? question about to for the forward. And from question, this what that simplify, And follow-up is to is the do, really everybody. of a talked mean, harder you’re I that ability portfolio not much with overly in trends concerned to a of But is to

David Golub

that sales the is March the of June X.X the and the you line the And XX this XX, table, quarter, look together million December more $XXX.X in literally quarter outlier see XXXX XX on page than chart. of at exits quarter. at Let’s investments. It’s XX presentation can twice the second the and times

me level life is of exits to sustained between X.X at weighted our see that’s effectively my my a average assets XXth closer a Over time, The in and $XXX.X the we not X. if to is prediction, ask June sales life X years. you prediction a So, a level. make of average will weighted investments that to and have tend experience,

sustaining that see So, don’t Robert. I I over I of likelihood -- high just time, see don’t a

I think to to good on make continue able going progress to we’re be originations.

and exits start will sales and growth. some think moderate, I I we’ll seeing think portfolio

Robert Dodd

credit and Excellent. I then, the anyway. may this And I’ll be if Thank can, ask on one question, picky, you. more, overly but

X and category the X.X%, assets? expectations below I in for quarter aren’t right, mean, three XXXX. terms a quarter makes that ones was -- presume like last quarter, are You’re rating it them assets, what’s below assets performance bit of COVID-impacted those in that some X expectations sense? of that if again. quarter, it’s less but they of and where last are assets in -- this were were categories X, those yes, than of they’re I because the got It’s expectations, below are still obviously, upgraded, this the slightly performance. they sequentially improved the above still tiny

David Golub

comments. couple a So, of

again, let’s at together. First, the look numbers

above were the that than XX where bit now they XXXX. you If page and end to they’re of the flip were little at presentation, are actually XXXX, end XXXX, category of at XXXX assets X at but the they X.X% lower correct you’re of a

performance like looked I it’s of now very it fair in right pre-COVID looks overall to much periods. ratings that So, picture say think the

with a this in forum cases, But, you I and underperforming on to a basis. the most some with on as to making loans of many In they the specifics good improved loans, category them workout loan-by-loan not credits, improve that COVID-impacted much they Are our we are so loans been job. group? as just challenged underperforming speak management team time. X a this we These specificity of and As were focuses that yes, really have loans can’t do actually are progress from seeing teams performance working for know, have, pre-COVID.

over coming that cautiously optimistic the I’m the improvement in So, several to see going portfolio we’re continued quarters.


question Anfield a have You follow-up Capital. of from the Cheeseman with Ray line

Ray Cheeseman

much XX see your XX.X% when -- next trend happy be us market thank report, us Will the things say of we to next the middle when the you the in stuff because period in comfort in give days. you wanted we you show is for report, as like good will XXth it that very earnings the portfolio you report the I specifically great release I’m will it and continue? improvement in wondering, already and measurement about performance. August closes

David Golub

August I your And appreciate the we you than think now prepared for thank to for right that’s GCMMR. have any speculative I’m compliment. on I question? do XXth. Phyllis, enthusiasm answer But, the last more


are to closing there time, remarks. management back turn to no this over I At further the for would call like questions.

David Golub

who listening Phyllis, Great. your your you support. today. thank to for Thank and you been have help, all much you, of appreciate very We

today, that As of to And quarter. look we always, us management. feel next four you any to please questions reach if forward didn’t of get GBDC to free you to to out talking the from we have


gentlemen, does you thank We and conference. that participating. for Ladies today’s conclude

disconnect. You now may