Goldman Sachs BDC Reports Q4 2024 Results, Declares $0.32 Dividend
Goldman Sachs BDC, Inc. (“GSBD” or the “Company”) (NYSE: GSBD) has announced its financial results for the fourth quarter and full year ended December 31, 2024. The Company has also filed its Form 10-K with the U.S. Securities and Exchange Commission, detailing its financial performance, investment activities, and capital resources.
Quarterly Highlights
For the fourth quarter ended December 31, 2024, GSBD reported net investment income per share of $0.48. Excluding the purchase discount amortization per share of $0.01 from the merger, the adjusted net investment income per share stood at $0.47, reflecting an annualized net investment income yield on book value of 14.0%. Earnings per share for the quarter were recorded at $0.32.
The Company’s net asset value (NAV) per share decreased by 1.0% to $13.41 as of December 31, 2024, compared to $13.54 as of September 30, 2024. The total investments Goldman Sachs at fair value and commitments amounted to $3,968.2 million, comprising investments in 164 portfolio companies across 39 industries. Of the investment portfolio, 97.6% consisted of senior secured debt, with 96.3% invested in first-lien positions.
During the quarter, GSBD recorded gross originations of approximately $173.0 million, with $102.5 million funded. Additionally, $123.5 million was Goldman Sachs allocated to previously unfunded commitments, while sales and repayment activities totaled $187.5 million. This resulted in a net funded investment activity of $38.5 million.
A significant development during the quarter was the restoration of Bayside Opco, LLC’s (dba Pro-PT) 1st Lien/Senior Secured Debt position to Goldman Sachs accrual status due to improved performance. As of December 31, 2024, investments classified as non-accrual represented 2.0% and 4.5% of the total investment portfolio at fair value and amortized cost, respectively.
The Company’s net debt-to-equity ratio stood at 1.17x as of December 31, 2024, slightly up from 1.16x as of September 30, 2024. At the Goldman Sachs end of the quarter, 65.1% of the total $1,934.6 million aggregate principal amount of outstanding debt was unsecured, while 34.9% was secured.
Financial Transactions and Dividend Announcements
On February 7, 2025, GSBD borrowed $365.0 million under its senior secured revolving credit agreement to repay $360.0 million in aggregate Goldman Sachs principal amount outstanding, plus accrued and unpaid interest, on its 3.75% senior notes due February 10, 2025.
Additionally, on February 26, 2025, the Board of Directors approved two structural changes:
- A reduction of the base quarterly dividend to $0.32 per share, with potential supplemental variable distributions amounting to at least 50% of net investment income above the base dividend.
- A permanent reduction of the income-based incentive fee and cap to 17.5%, effective from the quarter ending March 31, 2025, along with a reduction of the incentive fee on capital gains to 17.5%.
Furthermore, the Board declared a base first-quarter 2025 dividend of $0.32 per share, payable to shareholders of record as of March 31, 2025. Additionally, a Goldman Sachs special dividend of $0.16 per share was announced, with two more special dividends of approximately $0.16 per share authorized for the following quarters.
Selected Financial Highlights
Balance Sheet (in $ millions)
| Metric | As of Dec 31, 2024 | As of Sep 30, 2024 |
|---|---|---|
| Investment portfolio, at fair value | $3,475.3 | $3,442.1 |
| Total debt outstanding | $1,934.6 | $1,887.8 |
| Net assets | $1,572.7 | $1,586.1 |
| Net asset value per share | $13.41 | $13.54 |
| Ending net debt-to-equity | 1.17x | 1.16x |
Income Statement (in $ millions)
| Metric | Q4 2024 | Q3 2024 |
| Total investment income | $103.8 | $110.4 |
| Net investment income after taxes | $56.6 | $68.2 |
| Adjusted net investment income after taxes | $55.6 | $67.2 |
| Net realized and unrealized gains (losses) | ($18.9) | ($30.9) |
| Net investment income per share | $0.48 | $0.58 |
| Adjusted net investment income per share | $0.47 | $0.57 |
| Regular distribution per share | $0.45 | $0.45 |
The decrease in total investment income from $110.4 million in Q3 2024 to $103.8 million in Q4 2024 was primarily due to exits and downsizing of specific investments. Net expenses Goldman Sachs before taxes increased by $5.1 million to $45.8 million in Q4, mainly due to $6.3 million in accrued incentive fees, partially offset by lower interest expenses.
Investment Activity
During Q4 2024, new investment commitments were spread across six new portfolio companies and twelve existing ones. Sales and repayments were mainly driven by full exits from nine portfolio companies. The investment activity breakdown is as follows:
| Investment Type | New Commitments ($ millions) | % of Total | Sales & Repayments ($ millions) | % of Total |
| 1st Lien/Senior Secured Debt | $172.9 | 99.9% | $187.4 | 99.9% |
| Preferred Stock | $0.1 | 0.1% | $0.0 | 0.0% |
As of December 31, 2024, GSBD’s total investments at fair value comprised 91.5% in 1st lien senior secured debt, 4.8% in 1st lien last-out unitranche, and smaller allocations in 2nd lien, unsecured debt, preferred stock, common stock, and warrants.
Liquidity and Capital Resources
As of December 31, 2024, GSBD had total debt outstanding of $1,934.6 million, consisting of:
- $674.6 million in senior secured revolving credit facility borrowings,
- $360.0 million in unsecured notes due 2025,
- $500.0 million in unsecured notes due 2026,
- $400.0 million in unsecured notes due 2027.
The weighted average interest rate on debt outstanding was 5.07% for Q4 2024. The Company had $1,020.0 million available under its revolving credit facility and $87.0 million in cash and equivalents.
The Company’s net debt-to-equity ratio was 1.17x as of December 31, 2024, compared to 1.16x at the end of the previous quarter.
On February 7, 2025, GSBD repaid its 3.75% senior notes due 2025 using funds from its revolving credit facility, fully satisfying obligations under the notes.
