Golub Capital BDC, Inc. (NASDAQ:GBDC) Q1 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 02:00 pm ET


Golub Capital BDC, Inc. (NASDAQ:GBDC) Q1 2019 Earnings Conference Call Transcript


Loading Event

Loading Transcript


Welcome to the Golub Capital BDC, Inc's December 31, 2018 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 of uncertainties.

Actual results may differ materially from these in the forward-looking statements as a result of a number of factors, including those described from time-to-time in Golub Capital BDC Inc's filings and Securities and Exchange Commission.

For materials, the company intends to refer on today's earnings conference call, please visit the Investor Resource tab on the homepage of the company's website www.golubcapitalbdc.com and click on the Events Presentations link. Golub Capital BDC's earnings release is also available on the company's website in the Investor Resources section. As a reminder, this call is being recorded for replay purposes.

I will now turn the call over to David Golub, Chief Executive Officer of Golub Capital.

Please go ahead.

David Golub

Thanks Tara. Hello, everyone and thanks for joining us today. I'm joined by Ross Teune, our Chief Financial Officer; Greg Robbins, Managing Director and Jon Simmons Director here at Golub Capital. Yesterday, we issued our earnings press release for the quarter ended December 31 and we posted an earnings presentation on our website.

We're going to be referring to that presentation throughout the call today. Greg Robbins is going to start with an overview of GBDC's results for the first fiscal quarter of 2019, Ross will then take you through the results in more detail and I'm going to come back at the end for some closing remarks on three topics.

First, I'm going to talk about our perspective on the fourth quarter market downdraft -- fourth quarter 2018 market downdraft. Second, I am going to give you a status update on the proposed merger with Golub Capital Investment Corporation or what we call GCIC and third I'm going to update you on our debt capital structure and our leverage strategy.

But quarter-ended December 31, was another solid one for GBDC and that's despite the worst downdraft in liquid credit markets that we've seen since the financial crisis. For those of you who are new to GBDC, our investment strategy is, and since inception has been to focus on providing first lien senior secured loans to healthy, resilient middle market companies that are backed by strong partnership-oriented private equity sponsors.

With that, I'll turn the call over to Gregory.

Gregory Robbins

Thank you David. Let's look at the details for the quarter. Net increase in net assets resulting from operations -- become for the quarter ended December 31, 2018 with $18.4 million or $0.31 per share as compared to $15.9 million or 26% per share for the quarter ended September 30, 2018. Net investment income or