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| 8-K - 8-K - Golub Capital BDC 3, Inc. | gbdc3fy18q1investorpresent.htm |
GOLUB CAPITAL BDC 3, INC.
INVESTOR
PRESENTATION
QUARTER ENDED DECEMBER 31, 2017
Disclaimer
2
Some of the statements in this presentation constitute forward-looking statements,
which relate to future events or our future performance or financial condition. The
forward-looking statements contained in this presentation involve risks and
uncertainties, including statements as to: our future operating results; our business
prospects and the prospects of our portfolio companies; the effect of investments
that we expect to make and the competition for those investments; our contractual
arrangements and relationships with third parties; actual and potential conflicts of
interest with GC Advisors LLC ("GC Advisors"), our investment adviser, and other
affiliates of Golub Capital LLC (collectively, "Golub Capital"); the dependence of our
future success on the general economy and its effect on the industries in which we
invest; the ability of our portfolio companies to achieve their objectives; the use of
borrowed money to finance a portion of our investments; the adequacy of our
financing sources and working capital; the timing of cash flows, if any, from the
operations of our portfolio companies; general economic trends and other external
factors; the ability of GC Advisors to locate suitable investments for us and to
monitor and administer our investments; the ability of GC Advisors or its affiliates to
attract and retain highly talented professionals; our ability to qualify and maintain
our qualification as a regulated investment company and as a business
development company; general price and volume fluctuations in the stock markets;
the impact on our business of the Dodd-Frank Wall Street Reform and Consumer
Protection Act and the rules and regulations issued thereunder; and the effect of
changes to tax legislation and our tax position.
Such forward-looking statements may include statements preceded by, followed by
or that otherwise include the words “may,” “might,” “will,” “intend,” “should,” “could,”
“can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan”
or similar words.
We have based the forward-looking statements included in this presentation on
information available to us on the date of this presentation. Actual results could differ
materially from those anticipated in our forward-looking statements and future
results could differ materially from historical performance. We undertake no
obligation to revise or update any forward-looking statements made herein, whether
as a result of new information, future events or otherwise. You are advised to
consult any additional disclosures that we may make directly to you or through
reports that we have filed or in the future may file with the Securities and Exchange
Commission (“SEC”).
This presentation contains statistics and other data that have been obtained from or
compiled from information made available by third-party service providers. We have
not independently verified such statistics or data.
1. Investment income yield is calculated as (a) the actual amount earned on earning investments, including interest, fee income and amortization of capitalized fees and discounts, divided by the (b) daily average of total
earning investments at fair value.
2. Per share returns are calculated based on the daily weighted average shares outstanding during the period presented.
3. Return on equity calculations are based on daily weighted average of total net assets during the period presented.
Summary of Quarterly Results
3
First Fiscal Quarter 2018 Highlights
− Net increase in net assets resulting from operations (i.e. net income) for the quarter ended December 31, 2017 was $97,957, or $0.26 per
share, resulting in an annualized return on equity of 7.0%.
− For the quarter ended December 31, 2017, we made new investment commitments of $20.2 million in thirteen portfolio companies. The fair
value of investments at December 31, 2017 was $17.1 million. The investment income yield1 for the three months ended December 31, 2017
was 7.6%.
− For the quarter ended December 31, 2017, we closed on total investor capital subscriptions of $210.6 million and issued capital calls
totaling $15.9 million (7.5% called capital ratio). On January 1, 2018, we closed on additional capital subscriptions of $135.5 million,
increasing total capital subscriptions to $346.1 million.
Select Financial Data Q1 2018
New Investment Commitments $ 20,195,865
Fair Value of Investments at December 31, 2017 17,149,979
Net income 97,957
Earnings per weighted average share2 0.26
Annualized return on equity – net income3 7.0%
Net asset value $ 15.00
Asset Mix of New Originations Q1 2018
Senior Secured 38%
One Stop 61%
Equity 1%
Quarterly Statements of Financial Condition
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As of
September 30, 2017
(audited)
December 31, 2017
(unaudited)
Assets
Investments, at fair value $ – $ 17,149,979
Cash and cash equivalents 10,500 12,416,612
Restricted cash and cash equivalents – –
Other assets 154,862 513,837
Total Assets $ 165,362 $ 30,080,428
Liabilities and Net Assets
Debt $ – $ 13,900,000
Payable for open trades – –
Interest payable – 6,981
Management and incentive fee payable – 22,964
Distribution payable – 57,625
Other liabilities 154,862 209,413
Total Liabilities 154,862 14,196,983
Total Net Assets 10,500 15,883,445
Total Liabilities and Net Assets $ 165,362 $ 30,080,428
Net Asset Value per Share $ 15.00 $ 15.00
Leverage Ratio N/A 0.88x
Asset coverage N/A 213.4%
Common shares outstanding 700 1,058,896
Quarterly Operating Results
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1. GC Advisors waived reimbursement of $111,783 in professional fees for the three months ended December 31, 2017.
2. Per share data is calculated based on the daily weighted average shares outstanding during the period presented.
3. Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on the shares
outstanding as of the period end.
4. Per share data is based on (i) the total distributions paid for each respective record date during the period presented divided by (ii) the total number of shares outstanding on each respective record date. Please see slide
titled, “Common Stock and Distribution Information” included in this presentation for details on the distributions declared during the period.
For the three months ended
December 31, 2017
(unaudited)
Investment Income
Interest income $ 126,348
Fee income _
Total Investment Income 126,348
Expenses
Interest and other debt financing expenses 6,981
Base management fee, net of waiver 15,014
Incentive fee 7,950
Other operating expenses, net of reimbursement waiver1 51,449
Total Expenses 81,394
Net Investment Income 44,954
Net Gain (Loss) on Investments
Net realized gain (loss) on investments _
Net unrealized appreciation (depreciation) on investments 53,003
Net gain (loss) on investments 53,003
Net Increase in Net Assets Resulting from Operations $ 97,957
Per Share Data
Earnings per weighted average share2 $ 0.26
Net investment income per weighted average share2 $ 0.12
Distributions declared per share 3,4 $ 0.17
Weighted average common shares outstanding 370,424
Common Stock and Distribution Information
6
Distributions Paid
Distributions Declared
Date Declared Record Date Earnings Period Shares Outstanding Payment Date Amount Per Share Total Amount
August 2, 2017 October 23, 2017 October 2017 248,166.664 December 28, 2017 $ 0.0461 $ 11,435
December 6, 2017 December 7, 2017 November 2017 495,633.336 December 28, 2017 0.0583 28,897
December 6, 2017 December 22, 2017 December 2017 916,833.336 February 26, 2018 0.0629 57,625
Total for Quarter Ended December 31, 2017 $ 0.1673 $ 97,957
Date Declared Record Date Earnings Period Shares Outstanding Payment Date Amount Per Share Total Amount
December 6, 2017 January 23, 2018 January 2018 1,058,896.360 February 26, 2018 TBD TBD
February 6, 2018 February 23, 2018 February 2018 TBD May 23, 2018 TBD TBD
February 6, 2018 March 23, 2018 March 2018 TBD May 23, 2018 TBD TBD
February 6, 2018 April 27, 2018 April 2018 TBD July 24, 2018 TBD TBD