Golub Capital BDC, Inc. Announces Pricing On New $400 Million Term Debt Securitization

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May 14, 2014, 04:13 ET

CHICAGO, May 14, 2014 /PRNewswire/ -- Golub Capital BDC, Inc. a business development company (the "Company") (NASDAQ: GBDC, www.golubcapitalbdc.com), today announced that its wholly-owned and consolidated subsidiary, Golub Capital BDC CLO 2014 LLC, has priced a twelve year $400 million term debt securitization.

The notes offered in the term debt securitization (the "Notes") are structured as follows:

	Par Amount	% of Capital		Expected Rating	Issuance
Tranche	($ in millions)	Structure	Coupon	(Moody's / S&P)	Price
Class A-1 Notes	$191.0	47.5%	3 Mos LIBOR + 1.75%	Aaa / AAA	100.0%
Class A-2 Notes ^*	$20.0	5.0%	3 Mos LIBOR + 1.45%	Aaa / AAA	100.0%
Class B Notes	$35.0	8.7%	3 Mos LIBOR + 2.50%	Aa2 / AA	100.0%
Class C Notes	$37.5	9.3%	3 Mos LIBOR + 3.50%	A2 / -	100.0%
Equity Interests	$118.3	29.5%	N/A	N/A	N/A

Total	$401.8	100.0%

^*The Class A-2 coupon is 3 Mos LIBOR + 1.45% for the first 18 months and 3 Mos LIBOR + 1.95% thereafter.

The Class C Notes and Equity Interests will be indirectly retained by the Company. The reinvestment period for the term debt securitization ends in April 2018 and the Notes are scheduled to mature in April 2026.

The term debt securitization is expected to be 70% - 80.0% funded at close with assets that currently secure the Company's revolving credit facility with Wells Fargo and with assets that are currently unlevered. Additionally, based upon current LIBOR rates and including the amortization of costs and fees associated with the debt securitization, the Company projects an all-in yield of 2.4 % on the Class A and Class B Notes which compares favorably to the all-in yield of 3.1% on the Company's revolving credit facility with Wells Fargo for the three months ended March 31, 2014.

The securities offered as part of the term debt securitization have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state "blue sky" laws and may not be offered or sold in the United States absent registration under Section 5 of the Securities Act or an applicable exemption from such registration requirements.

ABOUT GOLUB CAPITAL BDC, INC.

Golub Capital BDC, Inc. invests primarily in senior secured, one stop, second lien and subordinated loans of, and warrants and minority equity securities in, middle-market companies that are, in most cases, sponsored by private equity investors. Golub Capital BDC, Inc.'s investment activities are managed by its investment adviser, GC Advisors LLC, an affiliate of the Golub Capital group of companies ("Golub Capital").

ABOUT GOLUB CAPITAL

With over $10 billion of capital under management, Golub Capital is a leading provider of financing solutions for the middle market, including one-loan financings (through the firm's proprietary MiniGOLD, GOLD, and MegaGOLD facilities), senior, second lien, and subordinated debt, preferred stock and co-investment equity. The firm underwrites and syndicates senior credit facilities up to $300 million. Golub Capital's hold sizes range up to $200 million per transaction.

Golub Capital has been a top 3 Traditional Middle Market Bookrunner each year from 2008 through 2013 for senior secured loans of up to $100 million for leveraged buyouts (according to Thomson Reuters LPC and internal data; based on number of deals). In 2013, Golub Capital was awarded Finance Monthly's Global Awards 2013 "Credit Asset Manager of the Year," and DealMakers M&A Awards 2013 "Middle Market Lender of the Year." In 2012, Golub Capital was awarded ACG New York Champion's Award for "Senior Lender Firm of the Year" and the M&A Advisor award for "Lender Firm of the Year." Golub Capital is a national firm with principal offices in Chicago and New York. For more information, please visit the firm's website at www.golubcapital.com.

FORWARD-LOOKING STATEMENTS

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. Golub Capital BDC, Inc. undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

SOURCE Golub Capital BDC, Inc.