Company Quick10K Filing
Golub Capital BDC
10-Q 2020-03-31 Filed 2020-05-15
10-Q 2019-12-31 Filed 2020-02-14
10-K 2019-09-30 Filed 2019-11-25
10-K 2019-09-30 Filed 2019-12-05
10-Q 2019-06-30 Filed 2019-08-13
10-Q 2019-06-30 Filed 2019-08-07
10-Q 2019-03-31 Filed 2019-05-08
10-Q 2019-03-31 Filed 2019-05-14
10-Q 2018-12-31 Filed 2019-02-06
10-Q 2018-12-31 Filed 2019-02-13
10-K 2018-09-30 Filed 2018-11-28
10-Q 2018-06-30 Filed 2018-08-08
10-Q 2018-03-31 Filed 2018-05-07
10-Q 2017-12-31 Filed 2018-02-07
10-K 2017-09-30 Filed 2017-11-20
10-Q 2017-06-30 Filed 2017-08-07
10-Q 2017-03-31 Filed 2017-05-09
10-Q 2016-12-31 Filed 2017-02-08
10-K 2016-11-16 Filed 2016-11-16
10-Q 2016-06-30 Filed 2016-08-03
10-Q 2016-03-31 Filed 2016-05-05
10-Q 2015-12-31 Filed 2016-02-05
10-K 2015-09-30 Filed 2015-11-17
10-Q 2015-06-30 Filed 2015-08-05
10-Q 2015-03-31 Filed 2015-05-11
10-Q 2014-12-31 Filed 2015-02-06
10-K 2014-09-30 Filed 2014-11-18
10-Q 2014-06-30 Filed 2014-08-07
10-Q 2014-03-31 Filed 2014-05-08
10-Q 2013-12-31 Filed 2014-02-06
10-K 2013-09-30 Filed 2013-12-03
10-Q 2013-06-30 Filed 2013-08-08
10-Q 2013-03-31 Filed 2013-05-03
10-Q 2012-12-31 Filed 2013-02-07
10-K 2012-09-30 Filed 2012-11-29
10-Q 2012-06-30 Filed 2012-08-06
10-Q 2012-03-31 Filed 2012-05-02
10-Q 2011-12-31 Filed 2012-02-06
10-K 2011-09-30 Filed 2011-12-08
10-Q 2011-06-30 Filed 2011-08-08
10-Q 2011-03-31 Filed 2011-05-05
10-Q 2010-12-31 Filed 2011-02-10
10-K 2010-09-30 Filed 2010-12-13
10-Q 2010-06-30 Filed 2010-08-09
10-Q 2010-03-31 Filed 2010-05-13
8-K 2020-05-15
8-K 2020-04-27
8-K 2020-03-19
8-K 2020-02-14
8-K 2020-02-07
8-K 2020-02-06
8-K 2019-12-10
8-K 2019-12-05
8-K 2019-11-25
8-K 2019-11-25
8-K 2019-11-12
8-K 2019-10-31
8-K 2019-10-30
8-K 2019-10-10
8-K 2019-10-09
8-K 2019-10-08
8-K 2019-09-16
8-K 2019-09-10
8-K 2019-09-06
8-K 2019-09-04
8-K 2019-09-04
8-K 2019-08-26
8-K 2019-08-15
8-K 2019-08-13
8-K 2019-08-09
8-K 2019-08-07
8-K 2019-08-07
8-K 2019-07-12
8-K 2019-07-11
8-K 2019-07-02
8-K 2019-07-02
8-K 2019-06-21
8-K 2019-06-04
8-K 2019-05-23
8-K 2019-05-14
8-K 2019-05-08
8-K 2019-05-08
8-K 2019-05-08
8-K 2019-04-23
8-K 2019-04-11
8-K 2019-04-10
8-K 2019-04-08
8-K 2019-03-25
8-K 2019-03-07
8-K 2019-02-13
8-K 2019-02-06
8-K 2019-02-06
8-K 2019-02-05
8-K 2019-02-05
8-K 2019-02-04
8-K 2019-02-01
8-K 2019-01-14
8-K 2019-01-10
8-K 2018-11-28
8-K 2018-11-28
8-K 2018-11-28
8-K 2018-11-16
8-K 2018-11-01
8-K 2018-10-11
8-K 2018-10-10
8-K 2018-09-21
8-K 2018-09-07
8-K 2018-08-08
8-K 2018-08-08
8-K 2018-07-20
8-K 2018-07-11
8-K 2018-07-09
8-K 2018-07-09
8-K 2018-05-07
8-K 2018-05-07
8-K 2018-04-09
8-K 2018-04-09
8-K 2018-03-15
8-K 2018-02-07
8-K 2018-02-07
8-K 2018-02-06
8-K 2018-01-11
8-K 2018-01-10

GBDC 10Q Quarterly Report

Note 1. Organization
Note 2. Significant Accounting Policies and Recent Accounting Updates
Note 3. Stockholders' Equity
Note 4. Related Party Transactions
Note 5. Investments
Note 6. Forward Currency Contracts
Note 7. Fair Value Measurements
Note 8. Borrowings
Note 9. Commitments and Contingencies
Note 10. Financial Highlights
Note 11. Earnings (Loss) per Share
Note 12. Dividends and Distributions
Note 13. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures.
Part II - Other Information
Item 1: Legal Proceedings.
Item 1A: Risk Factors.
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3: Defaults Upon Senior Securities.
Item 4: Mine Safety Disclosures.
Item 5: Other Information.
Item 6: Exhibits.
EX-31.1 fy2020q2exhibit311.htm
EX-31.2 fy2020q2exhibit312.htm
EX-32.1 fy2020q2exhibit321.htm

Golub Capital BDC Earnings 2020-03-31

Balance SheetIncome StatementCash Flow

10-Q 1 gbdc310-qxfy2020q2.htm 10-Q Document
TABLE OF CONTENTS


______________________________________________________________________________________________________ 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
______________________________________________________________________________________________________ 
FORM 10-Q

þ                 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2020

OR

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number 814-01244

Golub Capital BDC 3, Inc.
(Exact name of registrant as specified in its charter)

Maryland82-2375481
(State or other jurisdiction of incorporation or organization)  (I.R.S. Employer Identification No.)

200 Park Avenue, 25th Floor
New York, NY 10166
(Address of principal executive offices)

(212) 750-6060
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ   No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes o No   o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  o
Accelerated filer o
Non-accelerated filer  o
Smaller reporting company o
Emerging growth company þ

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  o  No þ

As of May 14, 2020, the Registrant had 33,090,999.162 shares of common stock, $0.001 par value, outstanding.


TABLE OF CONTENTS



Part I. Financial Information  
Item 1. Financial Statements
Consolidated Statements of Financial Condition as of March 31, 2020 (unaudited) and September 30, 2019
Consolidated Statements of Operations for the three and six months ended March 31, 2020 (unaudited) and 2019 (unaudited)
Consolidated Statements of Changes in Net Assets for the three and six months ended March 31, 2020 (unaudited) and 2019 (unaudited)
Consolidated Statements of Cash Flows for the six months ended March 31, 2020
(unaudited) and 2019 (unaudited)
Consolidated Schedules of Investments as of March 31, 2020 (unaudited) and September 30, 2019
Notes to Consolidated Financial Statements (unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures about Market Risk
Item 4.Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A.Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6.Exhibits



TABLE OF CONTENTS
Golub Capital BDC 3, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(In thousands, except share and per share data)

March 31, 2020September 30, 2019
(unaudited)
Assets  
Investments, at fair value (amortized cost of $839,205 and $611,003, respectively) $798,441  $616,989  
Cash and cash equivalents  22,544  2,413  
Foreign currencies (cost of $436 and $130, respectively) 428  130  
Restricted cash and cash equivalents  12,162  17,374  
Restricted foreign currencies (cost of $1,280 and $0, respectively) 1,338  —  
Cash collateral held at broker for forward currency contracts  450  450  
Unrealized net appreciation on forward currency contracts  720  240  
Interest receivable  2,447  2,226  
Capital call receivable  3,971  16  
Other assets  42  102  
Total Assets  $842,543  $639,940  
Liabilities          
Debt  $382,870  $270,644  
Less unamortized debt issuance costs  1,868  1,770  
Debt less unamortized debt issuance costs  381,002  268,874  
Other short-term borrowings (proceeds of $0 and $16,366, respectively) —  16,366  
Interest payable  1,971  881  
Distributions payable  3,805  6,441  
Management and incentive fees payable  3,569  3,316  
Accounts payable and accrued expenses  788  630  
Accrued trustee fees  —  12  
Total Liabilities  391,135  296,520  
Commitments and Contingencies (Note 9)         
Net Assets  
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of March 31, 2020 and September 30, 2019  —  —  
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 33,090,999.162 and 22,894,689.911 shares issued and outstanding as of March 31, 2020 and September 30, 2019, respectively  33  23  
Paid in capital in excess of par  496,331  343,396  
Distributable earnings  (44,956)  
Total Net Assets  451,408  343,420  
Total Liabilities and Total Net Assets  $842,543  $639,940  
Number of common shares outstanding33,090,999.162  22,894,689.911  
Net asset value per common share$13.64  $15.00  





See Notes to Consolidated Financial Statements

3


TABLE OF CONTENTS
Golub Capital BDC 3, Inc. and Subsidiaries
Consolidated Statement of Operations (unaudited)
(In thousands, except share and per share data)


Three months ended March 31,Six months ended March 31,
2020201920202019
Investment income    
Interest income$16,421  $6,033  $30,932  $10,328  
Dividend income —   —  
Fee income132  18  181  83  
Total investment income16,555  6,051  31,117  10,411  
Expenses        
Interest and other debt financing expenses3,635  1,511  7,137  2,532  
Base management fee2,796  927  5,193  1,573  
Incentive fee337  595  2,359  1,149  
Professional fees267  230  516  418  
Administrative service fee302  106  577  176  
General and administrative expenses77  29  92  56  
Total expenses7,414  3,398  15,874  5,904  
Base management fee waived (Note 4)(762) (253) (1,416) (429) 
Incentive fee waived (Note 4)128  (24) (169) (79) 
Net expenses6,780  3,121  14,289  5,396  
Net investment income9,775  2,930  16,828  5,015  
Net gain (loss) on investment transactions                
Net realized gain (loss) from:                
Investments(1) (1) —   
Foreign currency transactions(1) 41  (13) 48  
Net realized gain (loss) on investment transactions(2) 40  (13) 49  
Net change in unrealized appreciation (depreciation) from:                
Investments(49,321) 516  (46,750) 1,083  
Forward currency contracts778  —  479  —  
Translation of assets and liabilities in foreign currencies222  (10) 33  —  
Net change in unrealized appreciation (depreciation) on investment transactions(48,321) 506  (46,238) 1,083  
Net gain (loss) on investment transactions(48,323) 546  (46,251) 1,132  
Net increase (decrease) in net assets resulting from operations$(38,548) $3,476  $(29,423) $6,147  
Per Common Share Data            
Basic and diluted earnings (loss) per common share$(1.29) $0.31  $(1.06) $0.65  
Basic and diluted weighted average common shares outstanding29,851,593  11,092,733  27,861,886  9,467,478  




See Notes to Consolidated Financial Statements

4


TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries
Consolidated Statements of Changes in Net Assets (unaudited)
(In thousands, except share data)



Common StockPaid in Capital in Excess of ParDistributable EarningsTotal Net Assets
SharesPar Amount
Balance at September 30, 20185,815,002.633  $ $87,218  $ $87,225  
Issuance of common stock6,286,896.361   94,297  —  94,303  
Net increase (decrease) in net assets resulting from operations:
Net investment income—  —  —  5,015  5,015  
Net realized gain (loss) on investment transactions—  —  —  49  49  
Net change in unrealized appreciation (depreciation) on investment transactions—  —  —  1,083  1,083  
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan166,803.807  —  2,502  —  2,502  
Distributions from distributable earnings—  —  —  (2,943) (2,943) 
Distributions declared and payable—  —  —  (3,204) (3,204) 
Total increase (decrease) for the six months ended March 31, 20196,453,700.168   96,799  —  96,805  
Balance at March 31, 201912,268,702.801  $12  $184,017  $ $184,030  
Balance at December 31, 201810,859,989.050  $11  $162,888  $ $162,900  
Issuance of common stock1,344,241.361   20,162  —  20,163  
Net increase (decrease) in net assets resulting from operations:
Net investment income—  —  —  2,930  2,930  
Net realized gain (loss) on investment transactions—  —  —  40  40  
Net change in unrealized appreciation (depreciation) on investment transactions—  —  —  506  506  
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan64,472.390  —  967  —  967  
Distributions from distributable earnings —  —  —  (1,251) (1,251) 
Distributions declared and payable —  —  —  (2,225) (2,225) 
Total increase (decrease) for the three months ended March 31, 20191,408,713.751   21,129  —  21,130  
Balance at March 31, 201912,268,702.801  $12  $184,017  $ $184,030  
Balance at September 30, 201922,894,689.911  $23  $343,396  $ $343,420  
Issuance of common stock9,667,275.629  9145,000  —  145,009  
Net increase (decrease) in net assets resulting from operations:
Net investment income—  —  16,828  16,828  
Net realized gain (loss) on investment transactions—  —  (13) (13) 
Net change in unrealized appreciation (depreciation) on investment transactions—  —  (46,238) (46,238) 
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan529,033.622   7,935  —  7,936  
Distributions from distributable earnings—  —  —  (11,729) (11,729) 
Distributions declared and payable —  —  —  (3,805) (3,805) 
Total increase (decrease) for the six months ended March 31, 202010,196,309.251  10152,935(44,957) 107,988  
Balance at March 31, 202033,090,999.162  $33  $496,331  $(44,956) $451,408  
Balance at December 31, 201929,715,740.183  $30  $445,705  $ $445,736  
Issuance of common stock3,205,196.000   48,075  —  48,078  
Net increase (decrease) in net assets resulting from operations:
Net investment income—  —  —  9,775  9,775  
Net realized gain (loss) on investment transactions—  —  —  (2) (2) 
Net change in unrealized appreciation (depreciation) on investment transactions—  —  —  (48,321) (48,321) 
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan170,062.979  —  2,551  —  2,551  
Distributions from distributable earnings —  —  —  (5,792) (5,792) 
Distributions declared and payable —  —  —  (617) (617) 
Total increase (decrease) for the three months ended March 31, 20203,375,258.979   50,626  (44,957) 5,672  
Balance at March 31, 202033,090,999.162  $33  $496,331  $(44,956) $451,408  

See Notes to Consolidated Financial Statements

5


TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(In thousands)



Six months ended March 31,
20202019
Cash flows from operating activities  
Net increase (decrease) in net assets resulting from operations$(29,423) $6,147  
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash (used in) provided by operating activities:
Amortization of deferred debt issuance costs497  532  
Accretion of discounts and amortization of premiums(1,672) (483) 
Net realized (gain) loss on investments—  (1) 
Net realized (gain) loss on foreign currency transactions13  (48) 
Net change in unrealized (appreciation) depreciation on investments46,750  (1,083) 
Net change in unrealized (appreciation) depreciation on translation of assets and liabilities in foreign currencies(33) —  
Net change in unrealized (appreciation) depreciation on forward currency contracts(479) —  
Proceeds from (fundings of) revolving loans, net(4,989) (1,142) 
Fundings of investments(300,257) (161,614) 
Proceeds from principal payments and sales of portfolio investments79,611  9,708  
PIK interest(895) (35) 
Changes in operating assets and liabilities:
Interest receivable(221) (622) 
Other assets60  77  
Interest payable1,090  165  
Management and incentive fees payable253  792  
Accounts payable and accrued expenses158  90  
Accrued trustee fees(12) (11) 
Net cash (used in) provided by operating activities(209,549) (147,528) 
Cash flows from financing activities  
Borrowings on debt491,055  228,350  
Repayments of debt(378,798) (150,032) 
Proceeds from other short-term borrowings21,267  7,598  
Repayments on other short-term borrowings(37,664) (7,558) 
Capitalized debt issuance costs(595) (464) 
Capital calls received in advance—  4,374  
Proceeds from issuance of common shares141,054  94,303  
Distributions paid(10,234) (2,980) 
Net cash provided by (used in) financing activities226,085  173,591  
Net change in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies16,536  26,063
Effect of foreign currency exchange rates19  8
Cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies, beginning of period19,917  3,653
Cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies, end of period$36,472  $29,724  
Supplemental disclosure of cash flow information:
Cash paid during the period for interest$5,550  $1,747  
Distributions declared during the period15,534  6,147  
Supplemental disclosure of non-cash operating and financing activity:
Change in capital call receivable$(3,955) $—  
Stock issued in connection with dividend reinvestment plan7,936  2,502  
Change in distributions payable(2,636) 665  

See Notes to Consolidated Financial Statements.

6


TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited) - (continued)
(In thousands)

The following table provides a reconciliation of cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies reported within the Consolidated Statements of Financial Condition that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows:
As of March 31,
20202019
Cash and cash equivalents$22,544  $29,652  
Foreign currencies (cost of $436 and $72, respectively)428  72  
Restricted cash and cash equivalents12,162  —  
Restricted foreign currencies (cost of $1,280 and $0, respectively)
1,338  —  
Total cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies shown in the Consolidated Statements of Cash Flows
$36,472  $29,724  

See Note 2. Significant Accounting Policies and Recent Accounting Updates for a description of cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies.

See Notes to Consolidated Financial Statements

7


TABLE OF CONTENTS
Golub Capital BDC 3, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited)
March 31, 2020
(In thousands)


Investment
Type
Spread
Above Index (1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Investments              
Non-controlled/non-affiliate company investments                
Debt Investments              
Automobile               
Grease Monkey International, LLC
Senior loanL + 5.00%
(c)
6.45%11/2022$965  $957  0.2  $907  
Grease Monkey International, LLC#
Senior loanL + 5.00%
(c)
6.45%11/2022351  348  —  330  
Grease Monkey International, LLC#
Senior loanL + 5.00%
(c)
6.45%11/2022178  178  —  168  
Grease Monkey International, LLC#
Senior loanL + 5.00%
(c)
6.45%11/2022162  161  —  152  
Grease Monkey International, LLC#
Senior loanL + 5.00%
(c)
6.45%11/2022148  147  —  139  
Grease Monkey International, LLC#
Senior loanP + 4.00%
(a)(f)
6.71%11/202270  69  —  64  
Grease Monkey International, LLC#(5)
Senior loanL + 5.00%
N/A(6)
11/2022—  (1) —  —  
JHCC Holdings LLC
One stopL + 5.50%
(a)
6.50%09/20253,020  2,992  0.6  2,657  
JHCC Holdings LLC#
One stopP + 4.50%
(f)
7.75%09/20251,337  1,291  0.2  728  
JHCC Holdings LLC#
One stopP + 4.50%
(f)
7.75%09/202513  12  —   
Power Stop, LLC
Senior loanL + 4.50%
(c)(f)
5.95%10/2025672  669  0.1  591  
Quick Quack Car Wash Holdings, LLC
One stopL + 6.50%
(a)
7.50%04/20231,686  1,673  0.4  1,602  
Quick Quack Car Wash Holdings, LLC#
One stopL + 6.50%
(a)
7.50%04/2023820  814  0.2  779  
Quick Quack Car Wash Holdings, LLC#
One stopL + 6.50%
(a)
7.50%04/2023716  711  0.2  680  
Quick Quack Car Wash Holdings, LLC#
One stopL + 6.50%
(a)
7.50%04/2023479  475  0.1  455  
Quick Quack Car Wash Holdings, LLC#
One stopL + 6.50%
(a)
7.50%04/2023388  385  0.1  368  
Quick Quack Car Wash Holdings, LLC#
One stopL + 6.50%
(a)
7.50%04/202340  40  —  38  
11,045  10,921  2.1  9,659  
Beverage, Food and Tobacco
BJH Holdings III Corp.
One stopL + 5.75%
(c)
7.20%08/202519,303  19,011  4.0  17,952  
BJH Holdings III Corp.#
One stopL + 5.75%
(a)(c)
6.95%08/2025400  393  0.1  372  
Fintech Midco, LLC
One stopL + 5.00%
(c)(d)
6.46%08/20244,909  4,873  1.1  4,664  
Fintech Midco, LLC#
One stopL + 5.00%
(c)(d)
6.65%08/2024442  439  0.1  420  
Fintech Midco, LLC#
One stopL + 5.00%
(a)
6.00%08/2024100  99  —  95  
Flavor Producers, LLC
Senior loanL + 4.75%
(c)
6.12%12/2023439  433  0.1  403  
Flavor Producers, LLC#
Senior loan