NEW YORK - Golub Capital BDC, Inc. (NASDAQ: GBDC), a business development company, has announced preliminary financial results for the first fiscal quarter ended December 31, 2023. The company reported an increase in net asset value (NAV) per share from $15.02 on September 30, 2023, to an estimated range of $15.01 to $15.05 as of December 31, 2023. In addition, GBDC declared an increase in its base quarterly distribution from $0.37 to $0.39 per share, reflecting a rise of more than 5%.
The company's preliminary results indicated a net investment income per share ranging from $0.48 to $0.50 and an adjusted net investment income per share of $0.49 to $0.51. The net realized and unrealized gain or loss per share was estimated between a loss of $0.05 to $0.03. The earnings per share for the quarter are projected to be between $0.43 and $0.47.
During the quarter, GBDC originated $58.6 million in new middle-market investment commitments, with 84% being one-stop loans. Total investments at fair value are estimated to have decreased by approximately $72.9 million after accounting for debt repayments, sales of securities, and other factors. The company's GAAP debt-to-equity ratio is estimated to have decreased to 1.21x, and the effective GAAP debt-to-equity ratio, adjusted for cash and equivalents, to 1.18x as of December 31, 2023.
The number of non-accrual investments remained at nine, with non-accrual investments as a percentage of total investments at fair value and cost estimated at 1.1% and 1.7%, respectively.
GBDC's investment adviser, GC Advisors LLC, has agreed to unilaterally waive incentive fees, reducing the income and capital gain incentive fee rates from 20.0% to 15.0%, which contributed to the company's ability to increase its quarterly distribution.
The board of directors of GBDC expects to continue evaluating the potential for supplemental distributions under its quarterly variable supplemental distribution framework introduced in fiscal year 2023.
The information provided in this article is based on a press release statement from Golub Capital BDC, Inc.
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