Goldman Sachs BDC, Inc. (NYSE:GSBD) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 09:00 am ET


Goldman Sachs BDC, Inc. (NYSE:GSBD) Q3 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning. This is Ian, and I will be your conference facilitator today. I would like to welcome everyone to the Goldman Sachs BDC, Inc. Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

I will now turn the call over to Ms.Katherine Schneider, Head of Investor Relations at Goldman Sachs BDC. Katherine, you may begin your conference.

Katherine Schneider

Thanks, Ian. Good morning, everyone.

Before we begin today's call, I would like to remind our listeners that today's remarks may include forward-looking statements. These statements represent the company's beliefs regarding future events that, by their nature, are uncertain and outside of the company's control. The company's actual results and financial condition may differ, possibly materially, from what is indicated in those forward-looking statements as a result of a number of factors, including those described from time to time in the company's SEC filings. This audio cast is copyright material of Goldman Sachs BDC, Inc., and may not be duplicated, reproduced or rebroadcast without our consent.

Yesterday, after the market closed, the company issued an earnings press release and posted a supplemental earnings presentation, both of which can be found on the homepage of our website at, under the Investor Resources section. These documents should be reviewed in conjunction with the company's Form 10-Q filed yesterday with the SEC.

This conference call is being recorded today, November 8, 2019, for replay purposes. With that, I'll turn the call over to Brendan McGovern, CEO of Goldman Sachs BDC.

Brendan McGovern

Thank you, Katherine. Good morning, everyone, and thank you for joining us for our third quarter earnings conference call. As usual, in terms of the agenda for the call, I'll start by providing an overview of our third quarter results. From there, Jon Yoder will discuss our investment activity and portfolio metrics before handing it over to Jonathan Lamm to discuss our financial results in greater detail. And finally, I'll conclude with some closing remarks before we open the line for Q&A.

So with that, Q3 net investment income per share of $0.47 resulted in dividend coverage of 104% and equated to an 11.1% annualized NII return on common equity. As we announced after the market closed yesterday, our Board declared a $0.45 per share dividend payable to shareholders of record as of December 31, 2019. This equates to a dividend yield of 10.6% based on net asset value per share at the end of Q3.

Moving on to investment activity. This quarter was characterized by significant -- by a significant portfolio activity, reflecting a continued robust private capital markets backdrop as well as solid execution by the team. During the quarter, we made $173 million of investment commitments to 10 new portfolio companies and seven existing portfolio companies. Repayments totaled $241 million, driven by the full repayment of loans by nine different portfolio companies. The repayment of nearly one-fifth of the Q2 ending portfolio balance, coupled with diversified origination, enabled us to continue to shape the portfolio composition consistent with previously stated goals.

First, we