GOLUB CAPITAL BDC Inc
For the period ended Jun 30, 2024. Filed Aug 5, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 5, 2024
GBDC$12.74-1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-06.
0001476765-24-000036
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-05.
0001476765-24-000074
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 235 previous paragraphs and 241 current paragraphs.
158 unchanged; 63 reworded; 18 added; 8 removed; 6 previous and 2 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
(3)The income yield presented for the three months ended June 30, 2024 excludes the one-time reversal of $2.5 million of previously recognized interest income resulting from loans that were restructured or placed on non-accrual status, which is included in the calculation of the investment income yield for the quarter ended June 30, 2024. The income yield was 11.8% for the quarter ended June 30, 2024, when including the $2.5 million reversal of previously recognized interest income.
Current report
(4)During the three and nine months ended June 30, 2024, we recognized a $51.7 million net change in unrealized depreciation on investments due to the one-time write-down of the purchase premium allocated to former GBDC 3 investments acquired in the GBDC 3 Merger.
Current report
GC Advisors, as collateral manager for our indirect, wholly owned, consolidated subsidiary, Golub Capital BDC 3 CLO 1 LLC, or the GBDC 3 2021 Issuer, under a collateral management agreement, or the 2021 Collateral Management Agreement, is entitled to receive an annual fee in an amount equal to 0.35% of the principal balance of the portfolio loans held by the GBDC 3 2021 Issuer at the beginning of the collection period relating to each payment date, which is payable in arrears on each payment date. Under the 2021 Collateral Management Agreement, the term “collection period” refers to the period commencing on the tenth business day prior to the preceding payment date and ending on (but excluding) the tenth business day prior to such payment date.
Current report
GC Advisors, as collateral manager for our indirect, wholly owned, consolidated subsidiary, Golub Capital BDC 3 ABS 2022-1 LLC, or the GBDC 3 2022 Issuer, under a collateral management agreement, or the 2022-2 Collateral Management Agreement, is entitled to receive an annual fee in an amount equal to 0.35% of the principal balance of the portfolio loans held by the GBDC 3 2022 Issuer at the beginning of the collection period relating to each payment date, which is payable in arrears on each payment date. Under the 2022 Collateral Management Agreement, the term “collection period” relating to any payment date, refers to the period commencing on the tenth business day prior to the preceding payment date and ending on (but excluding) the tenth business day prior to such payment date. GC Advisors, as collateral manager for our indirect, wholly owned, consolidated subsidiary, Golub Capital BDC 3 CLO 2 LLC, or the GBDC 3 2022-2 Issuer, under a collateral management agreement, or the 2022-2 Collateral Management Agreement, is entitled to receive an annual fee in an amount equal to 0.35% of the principal balance of the portfolio loans held by the GBDC 3 2022-2 Issuer at the beginning of the collection period relating to each payment date, which is payable in arrears on each payment date. Under the 2022-2 Collateral Management Agreement, the term “collection period” refers to the period commencing on the tenth business day prior to the preceding payment date and ending on (but excluding) the tenth business day prior to such payment date.
Current report
GBDC 3 Acquisition
Current report
On June 3, 2024, we completed our acquisition of GBDC 3, pursuant to the GBDC 3 Merger Agreement. Pursuant to the GBDC 3 Merger Agreement, and, immediately following the Initial GBDC 3 Merger, GBDC 3 was then merged with and into us, with us as the surviving company. As a result of, and as of the effective time of, the GBDC 3 Merger, GBDC 3’s separate existence ceased.
Current report
In accordance with the terms of the GBDC 3 Merger Agreement, at the effective time of the GBDC 3 Merger, each outstanding share of GBDC 3’s common stock was converted into the right to receive 0.9138 shares of our common stock (with GBDC 3’s stockholders receiving cash in lieu of fractional shares of our common stock). As a result of the GBDC 3 Merger, we issued issue an aggregate of 92,115,308 shares of our common stock to former stockholders of GBDC 3.
Current report
Upon the consummation of the GBDC 3 Merger, we entered into the Investment Advisory Agreement, with GC Advisors, which replaced the Fourth Amended and Restated Investment Advisory Agreement by and between the Company and the Investment Adviser dated as of July 1, 2023 (the “Prior Investment Advisory Agreement”).
Current report
Investment income increased from the three months ended March 31, 2024 to the three months ended June 30, 2024 by $7.0 million, primarily due an increase in interest income as a result of an increase in the average earning debt investments balance of $484.8 million from our acquisition of GBDC 3. The increase in interest income resulting from the increase in the average earning debt investments was partially offset by the reversal of $2.5 million of previously recognized interest income and payment-in-kind (“PIK”) interest income resulting from loans that were restructured or placed on non-accrual status during the three months ended June 30, 2024 and, to a lesser extent, a decrease of interest earned on cash to $3.1 million during the three months ended June 30, 2024 from $4.8 million during the three months ended March 31, 2024.
Current report
Interest and other debt financing expenses, including amortization of debt issuance costs, increased from the three months ended March 31, 2024 to the three months ended June 30, 2024 by $16.0 million, primarily due to (i) $5.8 million of net unrealized losses related to the fair value hedge of the interest rate swaps on the 2028 and 2029 Notes recognized during the three months ended June 30, 2024 compared to $2.4 million of unrealized gains related to the fair value hedge of the interest rate swaps on the 2028 and 2029 Notes recognized during the three months ended March 31, 2024, (ii) increased interest expense incurred on the 2029 Notes that were outstanding for the full three months ended June 30, 2024, and (iii) in an increase in average debt outstanding of $122.3 million
Current report
The base management fee increased from the three months ended March 31, 2024 to the three months ended June 30, 2024 primarily due to an increase in average adjusted gross assets as a result of our acquisition of GBDC 3.
Current report
During the three and nine months ended June 30, 2024, we recognized a $51.7 million net change in unrealized depreciation on investments due to a one-time purchase premium write-down in connection to the GBDC 3 Merger.
Current report
GBDC 3 2021 Debt Securitization - Effective June 3, 2024, we assumed as a result of the GBDC 3 Merger, the GBDC 3 2021 Debt Securitization. The Class A, Class B, Class C-1, and Class C-2 GBDC 3 2021 Notes are included in the June 30, 2024 Consolidated Statements of Financial Condition as our debt and the Class D and Subordinated 2021 GBDC 3 Notes were eliminated in consolidation. As of June 30, 2024, we had debt outstanding under the GBDC 3 2021 Debt Securitization of $298.0 million.
Current report
GBDC 3 2022 Debt Securitization -Effective June 3, 2024, we assumed as a result of the GBDC 3 Merger, the GBDC 3 2022 Debt Securitization. The Class A Senior Secured Floating Rate GBDC 3 Notes are included in the June 30, 2024 Consolidated Statements of Financial Condition as our debt and the GBDC 3 Subordinated Notes were eliminated in consolidation. As of June 30, 2024, we had debt outstanding under the GBDC 3 2022 Debt Securitization of $251.6 million.
Current report
GBDC 3 2022-2 Debt Securitization -Effective June 3, 2024, we assumed as a result of the GBDC 3 Merger, the GBDC 3 2022-2 Debt Securitization. The Class A 2022-2 Notes and Class A GBDC 3 2022-2 Loan are included in the June 30, 2024 Consolidated Statements of Financial Condition as our debt and Subordinated GBDC 3 2022-2 Notes were eliminated in consolidation. As of June 30, 2024, we had debt outstanding under the GBDC 3 2022-2 Debt Securitization of $225.0 million.
Current report
•GC Advisors has agreed to irrevocably waived $14.4 million of income incentive fees calculated under the Investment Advisory Agreement, for the quarter ended June 30, 2024.
Current report
•Effective June 3, 2024, we assumed in the GBDC 3 Merger an unsecured line of credit with GC Advisors that allowed for borrowing up to $100.0 million, which we subsequently terminated effective June 11, 2024.
Current report
•On June 3, 2024, we completed our acquisition of GBDC 3, pursuant to the GBDC 3 Merger Agreement, GBDC 3 was merged with and into us, with us as the surviving company. As a result of, and as of the effective time of, the GBDC 3 Merger, GBDC 3’s separate existence ceased.
Removed paragraphs (8)
Previous report
•the anticipated closing of the Proposed Merger (as defined in Note 1 of our consolidated financial statements).
Previous report
Pending Merger with Golub Capital BDC 3, Inc. (the “Proposed Merger”): On January 16, 2024, we entered into an Agreement and Plan of Merger (the “GBDC 3 Merger Agreement”) with Golub Capital BDC 3, Inc., a Maryland corporation (“GBDC 3”), Park Avenue Subsidiary Inc., a Maryland corporation and wholly owned subsidiary of us (“Merger Sub”), GC Advisors, and, for certain limited purposes, the Administrator. The GBDC 3 Merger Agreement provides that, subject to the conditions set forth in the GBDC 3 Merger Agreement, Merger Sub will merge with and into GBDC 3, with GBDC 3 continuing as the surviving company and as a wholly-owned subsidiary of us, and, immediately thereafter, GBDC 3 will merge with and into us, with us continuing as the surviving company. The parties to the GBDC 3 Merger Agreement intend the Proposed Merger to be treated as a “reorganization” within the meaning of Section 368(a) of the Code.
Previous report
On April 12, 2024, we filed an amended registration statement on Form N-14, which included a joint proxy statement of us and GBDC 3 and a prospectus of us. The registration statement on Form N-14 was declared effective by the SEC on April 15, 2024. Special meetings for each of our and GBDC 3’s stockholders are scheduled for May 29, 2024 to vote on the matters described in the joint proxy statement as required by the GBDC 3 Merger Agreement.
Previous report
On April 8, 2024, we redeemed $500.0 million in aggregate principal amount of the 2024 Notes (as defined in Note 7 of our consolidated financial statements). The 2024 Notes were redeemed at 100% of the principal amount, plus the accrued and unpaid interest thereon.
Previous report
Investment income decreased from the three months ended December 31, 2023 to the three months ended March 31, 2024 by $0.5 million, primarily due to a decrease in accretion income resulting from decreased payoffs of portfolio company investments coupled with a slight decrease in interest income as a result of a decrease in the average earning debt investments balance of $81.1 million. The decrease in interest income resulting from the decrease in the average earning debt investments was partially offset by $4.8 million of interest earned on cash during the three months ended March 31, 2024, an increase of $3.9 million as compared to $0.9 million of interest earned on cash for the three months ended December 31, 2023 that was primarily due to increased cash temporarily held following the issuance of the 2029 Notes and prior to the redemption of the 2024 Notes.
Previous report
The base management fee decreased from the three months ended December 31, 2023 to the three months ended March 31, 2024 primarily due to a decrease in average adjusted gross assets from the three months ended December 31, 2023 to the three months ended March 31, 2024.
Previous report
2029 Notes
Previous report
•On January 16, 2024, we entered into the GBDC 3 Merger Agreement with GBDC 3, Merger Sub, GC Advisors, and, for certain limited purposes, the Administrator. See Note 13 in the notes to our consolidated financial statements for further information.
Reworded paragraphs (63)
Previous wording
Our investment objective is to generate current income and capital appreciation by investing primarily in one stop (a loan that combines characteristics of traditional first lien senior secured loans and second lien or subordinated loans and that are often referred to by other middle-market lenders as unitranche loans) and other senior secured loans of U.S. middle-market companies. We also selectively invest in second lien and subordinated loans of, and warrants and minority equity securities in U.S. middle-market companies. We intend to achieve our investment objective by (1) accessing the established loan origination channels developed by Golub Capital, a leading lender to U.S. middle-market companies with over $65.0 billion in capital under management as of January 1, 2024, (2) selecting investments within our core middle-market company focus, (3) partnering with experienced private equity firms, or sponsors, in many cases with whom Golub Capital has invested alongside in the past, (4) implementing the disciplined underwriting standards of Golub Capital and (5) drawing upon the aggregate experience and resources of Golub Capital.
Current wording
Our investment objective is to generate current income and capital appreciation by investing primarily in one stop (a loan that combines characteristics of traditional first lien senior secured loans and second lien or subordinated loans and that are often referred to by other middle-market lenders as unitranche loans) and other senior secured loans of U.S. middle-market companies. We also selectively invest in second lien and subordinated loans of, and warrants and minority equity securities in U.S. middle-market companies. We intend to achieve our investment objective by (1) accessing the established loan origination channels developed by Golub Capital, a leading lender to U.S. middle-market companies with over $70.0 billion in capital under management as of April 1, 2024, (2) selecting investments within our core middle-market company focus, (3) partnering with experienced private equity firms, or sponsors, in many cases with whom Golub Capital has invested alongside in the past, (4) implementing the disciplined underwriting standards of Golub Capital and (5) drawing upon the aggregate experience and resources of Golub Capital.
Previous wording
One stop loans include loans to technology companies undergoing strong growth due to new services, increased adoption and/or entry into new markets. We refer to loans to these companies as recurring revenue loans. Other targeted characteristics of recurring revenue businesses include strong customer revenue retention rates, a diversified customer base and backing from growth equity or venture capital firms. In some cases, the borrower’s high revenue growth is supported by a high level of discretionary spending. As part of the underwriting of such loans and consistent with industry practice, we adjust our characterization of the earnings of such borrowers for a reduction or elimination of such discretionary expenses, if appropriate. As of March 31, 2024 and September 30, 2023, one stop loans included $788.9 million and $782.6 million, respectively, of recurring revenue loans at fair value.
Current wording
One stop loans include loans to technology companies undergoing strong growth due to new services, increased adoption and/or entry into new markets. We refer to loans to these companies as recurring revenue loans. Other targeted characteristics of recurring revenue businesses include strong customer revenue retention rates, a diversified customer base and backing from growth equity or venture capital firms. In some cases, the borrower’s high revenue growth is supported by a high level of discretionary spending. As part of the underwriting of such loans and consistent with industry practice, we adjust our characterization of the earnings of such borrowers for a reduction or elimination of such discretionary expenses, if appropriate. As of June 30, 2024 and September 30, 2023, one stop loans included $1,124.2 million and $782.6 million, respectively, of recurring revenue loans at fair value.
Previous wording
As of March 31, 2024 and September 30, 2023, we had debt and equity investments in 366 and 342 portfolio companies, respectively.
Current wording
As of June 30, 2024 and September 30, 2023, we had debt and equity investments in 380 and 342 portfolio companies, respectively.
Previous wording
The following table shows the weighted average income yield and weighted average investment income yield of our earning portfolio company investments, which represented nearly 100% of our debt investments, as well as the annualized total return based on our average net asset value, and the total return based on the change in the quoted market price of our stock and assuming distributions were reinvested in accordance with our dividend reinvestment plan, or DRIP, in each case for the three months ended March 31, 2024 and December 31, 2023 and the six months ended March 31, 2024 and March 31, 2023:
Current wording
The following table shows the weighted average income yield and weighted average investment income yield of our earning portfolio company investments, which represented nearly 100% of our debt investments, as well as the annualized total return based on our average net asset value, and the total return based on the change in the quoted market price of our stock and assuming distributions were reinvested in accordance with our dividend reinvestment plan, or DRIP, in each case for the three months ended June 30, 2024 and March 31, 2024 and the nine months ended June 30, 2024 and June 30, 2023:
Previous wording
(3)Total return based on average net asset value is calculated as (a) the net increase/(decrease) in net assets resulting from operations divided by (b) the daily average of total net assets. Total return does not include sales load.
Current wording
(5)Total return based on average net asset value is calculated as (a) the net increase/(decrease) in net assets resulting from operations divided by (b) the daily average of total net assets. Total return does not include sales load.
Previous wording
(4)Total return based on market value assumes distributions are reinvested in accordance with the DRIP. Total return does not include sales load.
Current wording
(6)Total return based on market value assumes distributions are reinvested in accordance with the DRIP. Total return does not include sales load.
Previous wording
Revenues: We generate revenue in the form of interest and fee income on debt investments and capital gains and distributions, if any, on portfolio company investments that we originate or acquire. Our debt investments, whether in the form of senior secured, one stop, second lien or subordinated loans, typically have a term of three to seven years and bear interest at a fixed or floating rate. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. The frequency or volume of these repayments fluctuates significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities.
Current wording
Revenues: We generate revenue in the form of interest and fee income on debt investments and capital gains and distributions, if any, on portfolio company investments that we originate or acquire. Our debt investments, whether in the form of senior secured, one stop, second lien or subordinated loans, typically have a term of three to seven years and bear interest at a fixed or floating rate. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. The frequency or volume of these repayments fluctuates significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. In some cases, our investments provide for deferred interest payments or PIK interest. The principal amount of loans and any accrued but unpaid interest generally become due at the maturity date.
Previous wording
Collateral management fees are paid directly by the 2018 Issuer and GCIC 2018 Issuer to GC Advisors and are offset against the management fees payable under the Investment Advisory Agreement. The 2018 Issuer paid Morgan Stanley & Co. LLC structuring and placement fees for its services in connection with the structuring of the 2018 Debt Securitization (as defined in Note 7 of our consolidated financial statements). Before we acquired the GCIC 2018 Issuer as part of our acquisition of Golub Capital Investment Corporation, a Maryland corporation, or GCIC, on September 6, 2019, the GCIC 2018 Issuer paid Wells Fargo Securities, LLC structuring and placement fees for its services in connection with the initial structuring of the GCIC 2018 Debt Securitization (as defined in Note 7 of our consolidated financial statements). Term debt securitizations are also known as CLOs, and are a form of secured financing incurred by us, which are consolidated by us and subject to our overall asset coverage requirement. The 2018 Issuer and GCIC 2018 Issuer also agreed to pay ongoing administrative expenses to the trustee, collateral manager, independent accountants, legal counsel, rating agencies and independent managers in connection with developing and maintaining reports, and providing required services in connection with the administration of the 2018 Debt Securitization and GCIC 2018 Debt Securitization and collectively the Debt Securitizations, as applicable.
Current wording
Collateral management fees are paid directly by the 2018 Issuer, GCIC 2018 Issuer, GBDC 3 2021 Issuer, GBDC 3 2022 Issuer and GBDC 3 2022-2 Issuer to GC Advisors and are offset against the management fees payable under the Investment Advisory Agreement. The 2018 Issuer paid Morgan Stanley & Co. LLC structuring and placement fees for its services in connection with the structuring of the 2018 Debt Securitization (as defined in Note 7 of our consolidated financial statements). Before we acquired the GCIC 2018 Issuer as part of our acquisition of Golub Capital Investment Corporation, a Maryland corporation, or GCIC, on September 6, 2019, the GCIC 2018 Issuer paid Wells Fargo Securities, LLC structuring and placement fees for its services in connection with the initial structuring of the GCIC 2018 Debt Securitization (as defined in Note 7 of our consolidated financial statements). Before we acquired the GBDC 3 2021 Issuer and GBDC 3 2022 Issuer as a part of our acquisition of Golub Capital BDC 3, Inc., or GBDC 3, on June 3, 2024, the GBDC 3 2021 Issuer and GBDC 3 2022 Issuer paid Deutsche Bank AG, New York Branch, structuring and placement fees for its services in connection with the structuring of the GBDC 3 2021 Debt Securitization and the GBDC 3 2022 Debt Securitization (as defined in Note 7 of our consolidated financial statements). Before we acquired the GBDC 3 2022-2 Issuer as a part of our acquisition of GBDC 3 on June 3, 2024, the GBDC 3 2022-2 Issuer paid GreensLedge Capital Markets LLC and KeyBanc Capital Markets Inc. structuring and placement fees for its services in connection with the structuring of the GBDC 3 2022-2 Debt Securitization (as defined in Note 7 of our consolidated financial statements). Term debt securitizations are also known as CLOs, and are a form of secured financing incurred by us, which are consolidated by us and subject to our overall asset coverage requirement. The 2018 Issuer, GCIC 2018 Issuer, GBDC 3 2021 Issuer, GBDC 3 2022 Issuer and GBDC 3 2022-2 Issuer also agreed to pay ongoing administrative expenses to the trustee, collateral manager, independent accountants, legal counsel, rating agencies and independent managers in connection with developing and maintaining reports, and providing required services in connection with the administration of the 2018 Debt Securitization, GCIC 2018 Debt Securitization, the GBDC 3 2021 Debt Securitization, the GBDC 3 2022 Debt Securitization and the GBDC 3 2022-2 Debt Securitization and collectively the Debt Securitizations, as applicable.
Previous wording
On April 19, 2024, our Board declared a quarterly distribution of $0.39 per share payable on June 21, 2024 to holders of record as of May 2, 2024.
Current wording
On August 2, 2024, the Company’s Board declared a quarterly distribution of $0.39 per share payable on September 27, 2024 to holders of record as of August 30, 2024 and a supplemental distribution of $0.05 per share payable on September 13, 2024 to holders of record as of August 16, 2024.
Previous wording
Consolidated operating results for the three months ended March 31, 2024 and December 31, 2023 and the six months ended March 31, 2024 and March 31, 2023 are as follows:
Current wording
Consolidated operating results for the three months ended June 30, 2024 and March 31, 2024 and the nine months ended June 30, 2024 and June 30, 2023 are as follows:
Previous wording
On September 16, 2019, we completed our acquisition of GCIC. The acquisition was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification, or ASC, 805-50, Business Combinations — Related Issues. Under asset acquisition accounting, where the consideration paid to GCIC’s stockholders exceeded the relative fair values of the assets acquired and liabilities assumed, the premium paid by us was allocated to the cost of the GCIC assets acquired by us pro-rata based on their relative fair value. Immediately following the acquisition of GCIC, we recorded its assets at their respective fair values and, as a result, the purchase premium allocated to the cost basis of the GCIC assets acquired was immediately recognized as unrealized depreciation on our Consolidated Statement of Operations. The purchase premium allocated to investments in loan securities will amortize over the life of the loans through interest income with a corresponding reversal of the unrealized depreciation on such loans acquired through their ultimate disposition. The purchase premium allocated to investments in equity securities will not amortize over the life of the equity securities through interest income and, assuming no subsequent change to the fair value of the equity securities acquired from GCIC and disposition of such equity securities at fair value, we will recognize a realized loss with a corresponding reversal of the unrealized depreciation upon disposition of the equity securities acquired.
Current wording
On September 16, 2019, and June 3, 2024, we completed our acquisitions of GCIC and GBDC 3, respectively. Each acquisition was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification, or ASC, 805-50, Business Combinations — Related Issues. Under asset acquisition accounting, where the consideration paid to GCIC and GBDC 3’s stockholders exceeded the relative fair values of the assets acquired and liabilities assumed, the premium paid by us was allocated to the cost of the GCIC and GBDC 3 investments acquired by us pro-rata based on their relative fair value. Immediately following each acquisition of GCIC and GBDC 3, we recorded its assets at their respective fair values and, as a result, the purchase premium allocated to the cost basis of the GCIC and GBDC 3 assets acquired was immediately recognized as unrealized depreciation on our Consolidated Statement of Operations. The purchase premium allocated to investments in loan securities will amortize over the life of the loans through interest income with a corresponding reversal of the unrealized depreciation on such loans acquired through their ultimate disposition. The purchase premium allocated to investments in equity securities will not amortize over the life of the equity securities through interest income and, assuming no subsequent change to the fair value of the equity securities acquired from GCIC and GBDC 3 and disposition of such equity securities at fair value, we will recognize a realized loss with a corresponding reversal of the unrealized depreciation upon disposition of the equity securities acquired.
Previous wording
Investment income increased from the six months ended March 31, 2023 to the six months ended March 31, 2024 by $45.2 million, primarily due to an increase in interest and payment-in-kind (“PIK”) interest income due to rising interest base rates coupled with an increase in non-cash dividend income and a decrease of the GCIC acquisition purchase price premium amortization.
Current wording
Investment income increased from the nine months ended June 30, 2023 to the nine months ended June 30, 2024 by $61.7 million, primarily due to an increase in interest and PIK interest income due to rising interest base rates coupled with an increase in non-cash dividend income.
Previous wording
The annualized income yield by debt security type for the three months ended March 31, 2024 and December 31, 2023 and the six months ended March 31, 2024 and March 31, 2023 are as follows:
Current wording
The annualized income yield by debt security type for the three months ended June 30, 2024 and March 31, 2024 and the nine months ended June 30, 2024 and June 30, 2023 are as follows:
Previous wording
Income yields on senior secured and one stop loans remained relatively flat for the three months ended March 31, 2024 as compared to the three months ended December 31, 2023. Income yields on senior secured and one stop loans increased for the six months ended March 31, 2024 as compared to the six months ended March 31, 2023, primarily due to rising interest base rates. Our loan portfolio is partially insulated from a drop in floating interest rates, as 98.0% of the loan portfolio at fair value is subject to an interest rate floor. As of March 31, 2024 and September 30, 2023, the weighted average base rate floor of our loans was 0.82% and 0.80%, respectively.
Current wording
Income yields on senior secured loans and one stop loans decreased for the three months ended June 30, 2024 as compared to the three months ended March 31, 2024, primarily due to interest rate spread compression on new investments and amendments to existing loans. Income yields on senior secured and one stop loans increased for the nine months ended June 30, 2024 as compared to the nine months ended June 30, 2023, primarily due to rising interest base rates. Our loan portfolio is partially insulated from a drop in floating interest rates, as 97.2% of the loan portfolio at fair value is subject to an interest rate floor. As of June 30, 2024 and September 30, 2023, the weighted average base rate floor of our loans was 0.81% and 0.80%, respectively.
Previous wording
As of March 31, 2024, we have second lien investments in four portfolio companies and subordinated debt investments in six portfolio companies as shown in the Consolidated Schedule of Investments. Due to the limited number of second lien and subordinated debt investments, income yields on second lien and subordinated debt investments can be significantly impacted by the addition, subtraction or refinancing of one investment. The income yield for subordinated debt loans increased for the three months ended March 31, 2024 as compared to the three months ended December 31, 2023 due to the one-time recognition of $0.2 million of previously deferred interest income resulting from the change in accrual status of a former non-accrual loan. The income yield for subordinated debt loans was 15.2% for the three months ended March 31, 2024 when excluding the $0.2 million of previously deferred interest income.
Current wording
As of June 30, 2024, we have second lien investments in four portfolio companies and subordinated debt investments in six portfolio companies as shown in the Consolidated Schedule of Investments. Due to the limited number of second lien and subordinated debt investments, income yields on second lien and subordinated debt investments can be significantly impacted by the addition, subtraction or refinancing of one investment. The income yield for subordinated debt loans decreased for the three months ended June 30, 2024 as compared to the three months ended March 31, 2024 due to the one-time recognition of $0.2 million of previously deferred interest income resulting from the change in accrual status of a former non-accrual loan during the three months ended March 31, 2024. The income yield for subordinated debt loans was 15.2% for the three months ended March 31, 2024 when excluding the $0.2 million of previously deferred interest income.
Previous wording
The following table summarizes our expenses for the three months ended March 31, 2024 and December 31, 2023 and the six months ended March 31, 2024 and March 31, 2023:
Current wording
The following table summarizes our expenses for the three months ended June 30, 2024 and March 31, 2024 and the nine months ended June 30, 2024 and June 30, 2023:
Previous wording
Interest and other debt financing expenses, including amortization of debt issuance costs, increased from the three months ended December 31, 2023 to the three months ended March 31, 2024 by $2.6 million, primarily due to the February 2024 issuance of the 2029 Notes with a yield to maturity of 6.248%, additional debt issuance costs recognized in connection with the 2028 and 2029 Notes and an increase in average debt outstanding of $151.4 million. Interest and other debt financing expenses, including amortization of debt issuance costs, increased from the six months ended March 31, 2023 to the six months ended March 31, 2024 by $15.2 million, primarily due to the issuance of the 2028 Notes and 2029 Notes, rising interest base rates on borrowings from our floating rate debt facilities and an increase in average debt outstanding of $77.6 million. For more information about our outstanding borrowings for the three and six months ended March 31, 2024 and 2023, including the terms thereof, see “Note 7. Borrowings” in the notes to our consolidated financial statements and the “Liquidity and Capital Resources” section below.
Current wording
primarily due to the assumption of GBDC 3’s debt facilities. Interest and other debt financing expenses, including amortization of debt issuance costs, increased from the nine months ended June 30, 2023 to the nine months ended June 30, 2024 by $35.8 million, primarily due to (i) the issuance of the 2028 Notes and 2029 Notes, (ii) rising interest base rates on borrowings from our floating rate debt facilities, (iii) an increase in average debt outstanding of $140.3 million primarily due to the assumption of GBDC 3’s debt facilities and (iv) $3.5 million of net unrealized losses related to the fair value hedge of the interest rate swaps on the 2028 and 2029 Notes. For more information about our outstanding borrowings for the three and nine months ended June 30, 2024 and 2023, including the terms thereof, see “Note 7. Borrowings” in the notes to our consolidated financial statements and the “Liquidity and Capital Resources” section below.
Previous wording
For the three months ended March 31, 2024 and December 31, 2023 and the six months ended March 31, 2024 and March 31, 2023, the effective annualized average interest rate, which includes amortization of debt financing costs, amortization of discounts on notes issued and non-usage facility fees, on our total debt was 5.5%, 5.4%, 5.4% and 4.6%, respectively.
Current wording
For the three months ended June 30, 2024 and March 31, 2024 and the nine months ended June 30, 2024 and June 30, 2023, the effective annualized average interest rate, which includes amortization of debt financing costs, amortization of discounts on notes issued non-usage facility fees and the net contractual interest rate swap expense on the 2028 and 2029 Notes but excluding the net gain/(loss) related to the fair value hedges associated with the 2028 and 2029 Notes interest rate swaps, on our total debt was 6.5%, 5.5%, 5.9% and 4.8%, respectively.
Previous wording
The effective annualized average interest rate increased for the three months ended March 31, 2024 compared to the three months ended December 31, 2023 primarily due to the 2029 Notes issuance. The effective annualized average interest rate increased for the six months ended March 31, 2024 compared to the six months ended March 31, 2023 primarily due to the 2028 Notes and 2029 Notes issuances and rising interest rates on our borrowings from floating rate debt facilities.
Current wording
The effective annualized average interest rate increased for the three months ended June 30, 2024 compared to the three months ended March 31, 2024 primarily due to the April 8, 2024 redemption of the 2024 Notes that bore interest at a rate of 3.375%, the 2029 Notes outstanding for the full three months ended June 30, 2024 and, to a lesser extent, the assumption of GBDC 3’s credit facilities. The effective annualized average interest rate increased for the nine months ended June 30, 2024 compared to the nine months ended June 30, 2023 primarily due to the 2028 Notes and 2029 Notes issuances,, the redemption of the 2024 Notes that bore interest at a rate of 3.375% and rising interest rates on our borrowings from floating rate debt facilities.
Previous wording
The base management fee decreased from the six months ended March 31, 2023 to the six months ended March 31, 2024 primarily due to the base management fee rate reduction to 1.0% from 1.375% effective July 1, 2023 under the Investment Advisory Agreement, as compared to the Prior Investment Advisory Agreement and a decrease in average adjusted gross assets from the six months ended March 31, 2023 to the six months ended March 31, 2024.
Current wording
The base management fee decreased from the nine months ended June 30, 2023 to the nine months ended June 30, 2024 primarily due to the base management fee rate reduction to 1.0% from 1.375% effective July 1, 2023 under the Prior Investment Advisory Agreement, as compared to the Investment Advisory Agreement in place prior to July 1, 2023.
Previous wording
The Income Incentive Fee decreased by $5.8 million from the three months ended December 31, 2023 to the three months ended March 31, 2024 primarily due to a $5.2 million income incentive fee waiver unilaterally provided by GC Advisors to waive incentive fees in excess of 15% in support of the Proposed Merger for periods during the pendency of the Proposed Merger (the “GBDC 3 Merger Waiver”). GC Advisors has agreed to permanently reduce the income incentive fee and capital gain incentive fee rate from 20% to 15% upon the close of the Proposed Merger.
Current wording
The Income Incentive Fee decreased by $15.5 million from the three months ended March 31, 2024 to the three months ended June 30, 2024 primarily due to a $14.4 million income incentive fee waiver unilaterally provided by GC Advisors to waive 100% of Income Incentive Fees during the three months ended June 30, 2024, which was in addition to the permanent reduction of the income incentive fee and capital gain incentive fee rate from 20% to 15% upon the close of the GBDC 3 Merger. GC Advisors unilaterally provided a $5.2 million income incentive fee waiver during the three months ended March 31, 2024 to waive incentive fees in excess of 15% in support of the GBDC 3 Merger for periods during the pendency of the closing of the GBDC 3 Merger (the “GBDC 3 Merger Waiver”).
Previous wording
The Income Incentive Fee increased by $2.8 million from the six months ended March 31, 2023 to the six months ended March 31, 2024 primarily as a result of an increase in Pre-Incentive Fee Net Investment Income and a greater rate of return on the value of our net assets driven by net funds growth, the impact of rising interest base rates and an increase in non-cash dividend income during fiscal year 2024 that was partially offset by the GBDC 3 Merger Waiver. For each of the three months ended March 31, 2024 and December 31, 2023 and the six months ended March 31, 2024 and March 31, 2023, we were fully through the Income Incentive Fee “catch-up” provision and the Income Incentive Fee was equal to 15% of Pre-Incentive Fee Net Investment Income, net of the GBDC 3 Merger Waiver, for the three months ended March 31, 2024 and 20% of Pre-Incentive Fee Net Investment Income for the three months ended December 31, 2023.
Current wording
The Income Incentive Fee decreased by $16.1 million from the nine months ended June 30, 2023 to the nine months ended June 30, 2024 primarily as a result of $19.6 million in aggregate waivers of Income Incentive Fees during the nine months ended June 30, 2024 that offset an increase in Pre-Incentive Fee Net Investment Income and a greater rate of return on the value of our net assets driven by net funds growth, the impact of rising interest base rates and an increase in non-cash dividend income during fiscal year 2024. For each of the three months ended June 30, 2024 and March 31, 2024 and the nine months ended June 30, 2024 and June 30, 2023, we were fully through the Income Incentive Fee “catch-up” provision and the Income Incentive Fee was equal to 15% of Pre-Incentive Fee Net Investment Income, net of the GBDC 3 Merger Waiver for the three months ended March 31, 2024 and 20% of Pre-Incentive Fee Net Investment Income for the three months ended December 31, 2023.
Previous wording
In total, professional fees, the administrative service fee and general and administrative expenses remained relatively flat from the three months ended December 31, 2023 to the three months ended March 31, 2024.
Current wording
In total, professional fees, the administrative service fee and general and administrative expenses increased by $0.1 million from the three months ended March 31, 2024 to the three months ended June 30, 2024 primarily due to an increase in professional fees.
Previous wording
In total, professional fees, the administrative service fee and general and administrative expenses increased by $0.5 million from the six months ended March 31, 2023 to the six months ended March 31, 2024, primarily due to an increase in the administrative service fee and professional fees.
Current wording
In total, professional fees, the administrative service fee and general and administrative expenses increased by $0.9 million from the nine months ended June 30, 2023 to the nine months ended June 30, 2024, primarily due to an increase in the administrative service fee and professional fees.
Previous wording
Total expenses reimbursed to the Administrator during the three months ended March 31, 2024 and December 31, 2023 and the six months ended March 31, 2024 and March 31, 2023 were $2.0 million, $2.0 million, $4.0 million and $3.2 million, respectively.
Current wording
The Administrator pays for certain expenses incurred by us. These expenses are subsequently reimbursed in cash. Total expenses reimbursed to the Administrator during the three months ended June 30, 2024 and March 31, 2024 and the nine months ended June 30, 2024 and June 30, 2023 were $5.7 million, $2.0 million, $9.8 million and $7.2 million, respectively.
Previous wording
As of March 31, 2024 and September 30, 2023, included in accounts payable and other liabilities were $5.7 million and $2.0 million, respectively, of expenses paid on behalf of us by the Administrator.
Current wording
As of June 30, 2024 and September 30, 2023, included in accounts payable and other liabilities were $3.2 million and $2.0 million, respectively, of expenses paid on behalf of us by the Administrator.
Previous wording
The following table summarizes our net realized and unrealized gains (losses) for the three months ended March 31, 2024 and December 31, 2023 and the six months ended March 31, 2024 and March 31, 2023:
Current wording
The following table summarizes our net realized and unrealized gains (losses) for the three months ended June 30, 2024 and March 31, 2024 and the nine months ended June 30, 2024 and June 30, 2023:
Previous wording
During the three months ended March 31, 2024, we had a net realized loss of $13.8 million, primarily attributable to the realized loss recognized on the disposition of equity and debt investments of a portfolio company that were partially offset by realized gains recognized on the translation of foreign currency amounts and transactions into U.S. dollars and a realized gain on the sale of an equity investment. During the three months ended December 31, 2023, we had a net realized gain of $1.1 million, primarily attributable to the realized gain recognized on the sale of an equity investment and the translation of foreign currency amounts and transactions into U.S. dollars that were partially offset by realized losses on the disposition of an equity investment of a portfolio company.
Current wording
During the three months ended June 30, 2024, we had a net realized loss of $37.7 million, primarily attributable to the realized loss recognized on the restructure of equity and debt investments of a portfolio company that was partially offset by $3.6 million of realized gains recognized on the sale of three equity investments. During the three months ended March 31, 2024, we had a net realized loss of $13.8 million, primarily attributable to the realized loss recognized on the disposition of equity and debt investments of a portfolio company that were partially offset by realized gains recognized on the translation of foreign currency amounts and transactions into U.S. dollars and a realized gain on the sale of an equity investment.
Previous wording
During the six months ended March 31, 2024, we had a net realized loss of $12.7 million, primarily attributable to the realized losses on the disposition of equity and debt investments of a portfolio company in the second quarter of the 2024 fiscal year that was partially offset by realized gains recognized on the translation of foreign currency amounts and transactions into U.S. dollars and realized gains recognized on the sale of equity investments in multiple portfolio companies. During the six months ended March 31, 2023, we had a net realized loss of $1.5 million primarily attributable to the realized loss recognized on the disposition of equity and debt investments of a portfolio company investment that was partially offset by realized gains on the sale of equity investments in multiple portfolio companies and gains on the settlement of forward currency contracts.
Current wording
During the nine months ended June 30, 2024, we had a net realized loss of $50.4 million, primarily attributable to realized losses recognized on (i) the restructure of equity and debt investments of a portfolio company during the three months ended June 30, 2024 and (ii) the disposition of equity and debt investments of a portfolio company during the three months ended March 31, 2024 that were partially offset by realized gains recognized on the sale of equity investments in multiple portfolio companies throughout the nine months ended June 30, 2024. During the nine months ended June 30, 2023, we had a net realized loss of $43.4 million primarily attributable to the realized loss recognized on the restructuring of debt investments of multiple portfolio companies and the disposition of equity and debt investments of multiple portfolio company investments that were partially offset by realized gains on the sale of equity investments in multiple portfolio companies and gains on the settlement of a forward currency contract.
Previous wording
For the three months ended March 31, 2024, we had $46.5 million in unrealized appreciation on 209 portfolio company investments, which was offset by $20.1 million in unrealized depreciation on 174 portfolio company investments. For the three months ended December 31, 2023, we had $32.8 million in unrealized appreciation on 153 portfolio company investments, which was offset by $42.1 million in unrealized depreciation on 213 portfolio company investments.
Current wording
For the three months ended June 30, 2024, we had $28.3 million in unrealized appreciation on 111 portfolio company investments, which was offset by $29.3 million in unrealized depreciation on 293 portfolio company investments. For the three months ended March 31, 2024, we had $46.5 million in unrealized appreciation on 209 portfolio company investments, which was offset by $20.1 million in unrealized depreciation on 174 portfolio company investments.
Previous wording
Unrealized appreciation for the three months ended March 31, 2024 primarily resulted from strong credit performance in our portfolio and the reversal of unrealized depreciation on the disposition of equity and debt investments of a portfolio company. Unrealized appreciation for the three months ended December 31, 2023 primarily resulted from improved performance of certain portfolio companies and the reversal of unrealized depreciation due to spread tightening in the market during the second half of calendar year 2023. Unrealized depreciation for the three months ended March 31, 2024 and December 31, 2023 primarily resulted from isolated deterioration in the credit performance of a small number of portfolio companies.
Current wording
Unrealized appreciation for the three months ended June 30, 2024 primarily resulted from the reversal of unrealized depreciation on the restructuring of portfolio company investments and unrealized appreciation on equity investments due to improved performance of certain portfolio companies. Unrealized appreciation for the three months ended March 31, 2024 primarily resulted from strong credit performance in our portfolio and the reversal of unrealized depreciation on the disposition of equity and debt investments of a portfolio company. Unrealized depreciation for the three months ended June 30, 2024 primarily resulted from isolated deterioration in the credit performance of certain portfolio companies that were moved to or previously on non-accrual status as well as certain portfolio companies with pre-existing credit challenges. Unrealized depreciation for the three months ended March 31, 2024 primarily resulted from isolated deterioration in the credit performance of a small number of portfolio companies.
Previous wording
For the six months ended March 31, 2024, we had $58.2 million in unrealized appreciation on 224 portfolio company investments, which was offset by $41.2 million in unrealized depreciation on 159 portfolio company investments. For the six months ended March 31, 2023, we had $40.4 million in unrealized appreciation on 145 portfolio company investments, which was offset by $88.5 million in unrealized depreciation on 202 portfolio company investments.
Current wording
For the nine months ended June 30, 2024, we had $54.1 million in unrealized appreciation on 165 portfolio company investments, which was offset by $38.0 million in unrealized depreciation on 239 portfolio company investments. For the nine months ended June 30, 2023, we had $82.6 million in unrealized appreciation on 173 portfolio company investments, which was offset by $87.7 million in unrealized depreciation on 183 portfolio company investments.
Previous wording
Unrealized appreciation for the six months ended March 31, 2024 primarily resulted from improved performance of certain portfolio companies and the reversal of unrealized depreciation due to spread tightening in the market during the second half of calendar year 2023. Unrealized appreciation for the six months ended March 31, 2023 primarily resulted from the reversal of unrealized depreciation on the disposition of equity and debt investments of a portfolio company, loan repayments and improved performance of certain portfolio companies. Unrealized depreciation for the six months ended March 31, 2024 primarily resulted from isolated deterioration in the credit performance of a small number of portfolio companies. Unrealized depreciation for the six months ended March 31, 2023 primarily resulted from decreases in the fair value across our portfolio company investments due to incremental spread widening in the market during the first quarter of the 2023 fiscal year and isolated deterioration in the credit performance of a small number of portfolio companies.
Current wording
Unrealized appreciation for the nine months ended June 30, 2024 primarily resulted from the reversal of unrealized depreciation on the disposition or restructuring of portfolio company investments, improved performance of certain portfolio companies and the reversal of unrealized depreciation due to spread tightening in the market during the 2024 fiscal year. Unrealized appreciation for the nine months ended June 30, 2023 primarily resulted from the reversal of unrealized depreciation on the sale, restructuring or disposition of portfolio company investments, loan repayments and improved performance of certain portfolio companies. Unrealized depreciation for the nine months ended June 30, 2024 primarily resulted from isolated deterioration in the credit performance of certain portfolio companies that were moved to or on non-accrual status as well as certain portfolio companies with pre-existing credit challenges. Unrealized depreciation for the nine months ended June 30, 2023 primarily resulted from decreases in the fair value across our portfolio company investments due to incremental spread widening in the market during the first quarter of the 2023 fiscal year and isolated deterioration in the credit performance of a small number of portfolio companies.
Previous wording
For the six months ended March 31, 2024, we experienced a net increase in cash and cash equivalents, foreign currencies and restricted cash and cash equivalents of $322.0 million. During the period, cash provided by operating activities was $313.0 million, primarily driven by proceeds from principal payments and sales of portfolio investments of $322.9 million and net investment income after tax of $170.1 million, offset by fundings of portfolio investments of $147.0 million. Lastly, cash provided by financing activities was $9.0 million, primarily driven by borrowings on debt of $1,145.6 million, offset by repayments of debt of $999.7 million and distributions paid of $123.6 million.
Current wording
For the nine months ended June 30, 2024, we experienced a net increase in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies of $326.0 million. During the period, cash provided by operating activities was $543.9 million, primarily driven by proceeds from principal payments and sales of portfolio investments of $867.2 million and net investment income after tax of $262.8 million, offset by fundings of portfolio investments of $554.5 million. Lastly, cash used in financing activities was $217.9 million, primarily driven by borrowings on debt of $1,966.6 million, offset by repayments of debt of $1,971.9 million and distributions paid of $199.2 million.
Previous wording
For the six months ended March 31, 2023, we experienced a net decrease in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies of $43.0 million. During the period, cash provided by operating activities was $82.7 million, primarily driven by proceeds from principal payments and sales of portfolio investments of $394.0 million and net investment income after excise tax of $131.9 million, offset by fundings of portfolio investments of $412.6 million. Lastly, cash used by financing activities was $125.7 million, primarily driven by repayments of debt of $310.1 million, distributions paid of $90.8 million and purchases of common stock under the DRIP of $22.0 million, offset by borrowings on debt of $312.3 million.
Current wording
For the nine months ended June 30, 2023, we experienced a net decrease in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies of $9.6 million. During the period, cash provided by operating activities was $131.2 million, primarily driven by proceeds from principal payments and sales of portfolio investments of $550.8 million and net investment income after excise tax of $205.6 million, offset by fundings of portfolio investments of $583.8 million. Lastly, cash used by financing activities was $140.9 million, primarily driven by repayments of debt of $463.8 million, distributions paid of $135.3 million and purchases of common stock under the DRIP of $33.5 million, offset by borrowings on debt of $513.9 million.
Previous wording
As of March 31, 2024 and September 30, 2023, we had cash and cash equivalents of $292.8 million and $65.6 million, respectively. In addition, we had foreign currencies of $7.9 million and $4.2 million as of March 31, 2024 and September 30, 2023, respectively, restricted cash and cash equivalents of $159.6 million and $70.4 million as of March 31, 2024 and September 30, 2023, respectively, and no restricted foreign currencies as of both March 31, 2024 and September 30, 2023. Cash and cash equivalents and foreign currencies are available to fund new investments, pay operating expenses and pay distributions. Restricted cash and cash equivalents and restricted foreign currencies can be used to pay principal and interest on borrowings and to fund new investments that meet the guidelines under our debt securitizations or credit facilities, as applicable.
Current wording
As of June 30, 2024 and September 30, 2023, we had cash and cash equivalents of $141.2 million and $65.6 million, respectively. In addition, we had foreign currencies of $6.3 million and $4.2 million as of June 30, 2024 and September 30, 2023, respectively, restricted cash and cash equivalents of $316.5 million and $70.4 million as of June 30, 2024 and September 30, 2023, respectively, and restricted foreign currencies of $0.7 million as of June 30, 2024. As of September 30, 2023, we had no restricted foreign currencies. Cash and cash equivalents and foreign currencies are available to fund new investments, pay operating expenses and pay distributions. Restricted cash and cash equivalents and restricted foreign currencies can be used to pay principal and interest on borrowings and to fund new investments that meet the guidelines under our debt securitizations or credit facilities, as applicable.
Previous wording
JPM Credit Facility - On February 11, 2021, we entered into the JPM Credit Facility (as defined in Note 7 of our consolidated financial statements), which, as of March 31, 2024, allowed us to borrow up to $1.49 billion at any one time outstanding, subject to leverage and borrowing base restrictions. As of March 31, 2024, we had no amount outstanding under the JPM Credit Facility. As of September 30, 2023, we had outstanding debt under the JPM Credit Facility of $784.4 million. As of March 31, 2024 and September 30, 2023, subject to leverage and borrowing base restrictions, we had $1.49 billion and $703.1 million, respectively, of remaining commitments and availability on the JPM Credit Facility.
Current wording
JPM Credit Facility - On February 11, 2021, we entered into the JPM Credit Facility (as defined in Note 7 of our consolidated financial statements), which, as of June 30, 2024, allowed us to borrow up to $1.49 billion at any one time outstanding, subject to leverage and borrowing base restrictions. As of June 30, 2024 and September 30, 2023, we had outstanding debt under the JPM Credit Facility of $333.7 million and $784.4 million, respectively. As of June 30, 2024 and September 30, 2023, subject to leverage and borrowing base restrictions, we had $1.15 billion and $703.1 million, respectively, of remaining commitments and availability on the JPM Credit Facility.
Previous wording
Adviser Revolver - On June 22, 2016, we entered into the Adviser Revolver (as defined in Note 7 of our consolidated financial statements), which, as amended, permitted us to borrow up to $100.0 million at any one time outstanding as of March 31, 2024. We entered into the Adviser Revolver in order to have the ability to borrow funds on a short-term basis and have in the past repaid, and generally intend in the future to repay, borrowings under the Adviser Revolver within 30 to 45 days from which they are drawn. As of both March 31, 2024 and September 30, 2023, we had no amounts outstanding on the Adviser Revolver.
Current wording
Adviser Revolver - On June 22, 2016, we entered into the Adviser Revolver (as defined in Note 7 of our consolidated financial statements), which, as amended, permitted us to borrow up to $200.0 million at any one time outstanding as of June 30, 2024. We entered into the Adviser Revolver in order to have the ability to borrow funds on a short-term basis and have in the past repaid, and generally intend in the future to repay, borrowings under the Adviser Revolver within 30 to 45 days from which they are drawn. As of both June 30, 2024 and September 30, 2023, we had no amounts outstanding on the Adviser Revolver.
Previous wording
2018 Debt Securitization - On November 16, 2018, we completed the 2018 Debt Securitization. The Class A, Class B and Class C-1 2018 Notes are included in the March 31, 2024 and September 30, 2023 Consolidated Statements of Financial Condition as our debt, and the Class C-2, Class D and Subordinated 2018 Notes were eliminated in consolidation. As of March 31, 2024 and September 30, 2023, we had outstanding debt under the 2018 Debt Securitization of $347.0 million and $388.7 million, respectively.
Current wording
2018 Debt Securitization - On November 16, 2018, we completed the 2018 Debt Securitization. The Class A, Class B and Class C-1 2018 Notes are included in the June 30, 2024 and September 30, 2023 Consolidated Statements of Financial Condition as our debt, and the Class C-2, Class D and Subordinated 2018 Notes were eliminated in consolidation. As of June 30, 2024 and September 30, 2023, we had outstanding debt under the 2018 Debt Securitization of $308.0 million and $388.7 million, respectively.
Previous wording
GCIC 2018 Debt Securitization - Effective September 16, 2019, we assumed as a result of the GCIC Merger, the GCIC 2018 Debt Securitization. The Class A-1, Class A-2 (Class A-2-R GCIC 2018 Notes after refinancing on December 21, 2020) and Class B-1 GCIC 2018 Notes are included in the March 31, 2024 and September 30, 2023 Consolidated Statements of Financial Condition as our debt, and the Class B-2, Class C and Class D GCIC 2018 Notes and the Subordinated GCIC 2018 Notes were eliminated in consolidation. As of March 31, 2024 and September 30, 2023, we had outstanding debt under the GCIC 2018 Debt Securitization of $467.3 million and $513.5 million, respectively.
Current wording
GCIC 2018 Debt Securitization - Effective September 16, 2019, we assumed as a result of the GCIC Merger, the GCIC 2018 Debt Securitization. The Class A-1, Class A-2 (Class A-2-R GCIC 2018 Notes after refinancing on December 21, 2020) and Class B-1 GCIC 2018 Notes are included in the June 30, 2024 and September 30, 2023 Consolidated Statements of Financial Condition as our debt, and the Class B-2, Class C and Class D GCIC 2018 Notes and the Subordinated GCIC 2018 Notes were eliminated in consolidation. As of June 30, 2024 and September 30, 2023, we had outstanding debt under the GCIC 2018 Debt Securitization of $380.0 million and $513.5 million, respectively.
Showing the first 40 of 63 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
DB Credit Facility - Effective June 3, 2024, we assumed, as a result of the GBDC 3 Merger, the DB Credit Facility (as defined in Note 7 of our consolidated financial statements), which, as of June 30, 2024, allowed us to borrow up to $625.0 million at any one time outstanding, subject to leverage and borrowing base restrictions. As of June 30, 2024, we had outstanding debt under the DB Credit Facility of $565.8 million. As of June 30, 2024, subject to leverage and borrowing base restrictions, we had $59.2 million of remaining commitments and $23.9 million of availability on the DB Credit Facility.
Current report — wording carried from elsewhere
GAAP debt-to-equity ratio, net, which reduces total debt by cash and cash equivalents and foreign currencies, was 1.05x as of June 30, 2024.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
In some cases, our investments provide for deferred interest payments or PIK interest. The principal amount of loans and any accrued but unpaid interest generally become due at the maturity date.
Previous report — wording carried elsewhere
On April 11, 2024, we entered into an interest rate swap on the 2028 Notes (as defined in Note 7 of our consolidated financial statements) pursuant to which we agreed to receive a fixed rate of 7.310% and pay a rate of one-month SOFR plus 2.835%. The interest rate swap is designated as an effective hedge accounting instrument. The notional amount of the swap is $225.0 million and terminates on November 5, 2028.
Previous report — wording carried elsewhere
On May 3, 2024, our Board declared a supplemental distribution of $0.06 per share payable on June 14, 2024 to holders of record as of May 16, 2024.
Previous report — wording carried elsewhere
The Administrator pays for certain expenses incurred by us. These expenses are subsequently reimbursed in cash.
Previous report — wording carried elsewhere
On October 2, 2020, we issued $400.0 million in aggregate principal amount of the 2024 Notes. On October 15, 2021, we issued an additional $100.0 million in aggregate principal of the 2024 Notes. As of both March 31, 2024 and September 30, 2023, we had $500.0 million of outstanding aggregate principal amount of the 2024 Notes. On April 8, 2024, we redeemed $500.0 million in aggregate principal amount of the 2024 Notes, or 100% of the principal amount, plus the accrued and unpaid interest thereon.
Previous report — wording carried elsewhere
The carrying value of the 2029 Notes is inclusive of an adjustment for the change in fair valueof an effective hedge accounting relationship.