Golub Capital BDC Merges with BDC 3, Becomes Fifth-Largest BDC

By Bobby Samwell • Monday, June 03 11:31 • Permanent Link

Golub Capital BDC, Inc. has completed a merger with Golub Capital BDC 3, Inc., with Golub Capital BDC as the surviving company. This has resulted in Golub Capital BDC becoming the fifth-largest externally managed, publicly traded business development company by assets, with $8.8 billion of total assets at fair value and investments in 367 portfolio companies as of March 31, 2024.

The merger has also led to changes in the company's fee structure, with Golub Capital BDC's investment adviser, GC Advisors LLC, agreeing to reduce the income incentive fee and capital gain incentive fee rate as well as the incentive fee cap from 20.0% to 15.0%. The company's cumulative incentive fee cap, since-inception lookback period, and income incentive fee hurdle rate of 8% per annum have all remained in place.

Additionally, upon closing of the merger, Golub Capital BDC 3 stockholders received 0.9138 shares of Golub Capital BDC common stock for each share of Golub Capital BDC 3 common stock. The transaction is estimated to be 2.1% accretive to Golub Capital BDC’s net asset value (“NAV”) per share as of March 31, 2024, with the final NAV accretion resulting from the merger to be disclosed when Golub Capital BDC reports its financial results for the period ended June 30, 2024.

Furthermore, Golub Capital BDC's board of directors has declared a series of special distributions totaling $0.15 per share, to be distributed in three consecutive quarterly payments of $0.05 per share per quarter. The first special distribution of $0.05 per share is payable on June 27, 2024, to stockholders of record as of June 13, 2024, followed by the second and third special distributions payable on September 13, 2024, and December 13, 2024, respectively.

Finally, Golub Capital BDC, Inc. had over 925 employees and over $70 billion of capital under management as of April 1, 2024, with offices in North America, Europe, and Asia. Following these announcements, the company's shares moved 1.1%, and are now trading at a price of $16.75. If you want to know more, read the company's complete 8-K report here.

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