Golub Capital BDC, Inc. (the “Company,” “we,” “us,” or “our”), a prominent business development company (Nasdaq: GBDC), announced the pricing of its underwritten public offering of an additional $150 million in aggregate principal amount of 6.000% notes due 2029. The offering is set to mature on July 15, 2029. The Company has the option to redeem the notes in whole or in part at any time before June 15, 2029, at par value plus a “make-whole” premium, and at par thereafter.
These newly issued notes will be part of a larger series and share the same terms (with the exception of the issue date, offering price, and initial interest payment date) as the $600 million in 6.000% notes due 2029 that the Company previously issued on February 1, 2024. Following the issuance, the total outstanding principal amount of the Company’s 6.000% notes due 2029 will increase to $750 million.
Leading the underwriting efforts are SMBC Nikko Securities America, Inc., J.P. Morgan Securities LLC, Santander US Capital Markets LLC, Truist Securities, Inc., Capital One Securities, Inc., MUFG Securities Americas Inc., Regions Securities LLC, SG Americas Securities, LLC, and Wells Fargo Securities, LLC, acting as joint book-running managers. BNP Paribas Securities Corp., CastleOak Securities, L.P., CIBC World Markets Corp., Comerica Securities, Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., and WauBank Securities LLC are serving as co-managers for this offering. The offering is expected to close on December 3, 2024, subject to the usual closing conditions.
The net proceeds from this offering will primarily be used to repay existing debts, including those under the Company’s senior secured revolving credit facility with JPMorgan Chase Bank, N.A. (the “JPM Credit Facility”), or the $383.6 million term debt securitization issued by Golub Capital BDC 3 CLO 2 LLC, a Delaware-based subsidiary of the Company. This securitization was acquired as part of Golub Capital BDC, Inc.’s acquisition of Golub Capital BDC 3, Inc. in June 2024. However, the Company retains the option to reborrow from the JPM Credit Facility for general corporate purposes, which may include making investments in portfolio companies in line with its established investment strategy.
Investors are strongly encouraged to carefully review the Company’s investment objectives, risks, charges, and expenses before making any investment decisions. The preliminary prospectus supplement dated November 25, 2024, and the accompanying prospectus dated June 9, 2022, which have been filed with the U.S. Securities and Exchange Commission (SEC), contain detailed information about the Company and should be thoroughly read before making any investments.
It is important to note that the pricing term sheet, preliminary prospectus supplement, accompanying prospectus, and this press release do not constitute an offer to sell any securities, nor are they soliciting an offer to buy the notes in any jurisdiction where such offers are not permitted.
This strategic issuance further solidifies Golub Capital BDC, Inc.’s position in the market by expanding its note offerings while maintaining a focus on its long-term investment goals. With a proven track record in the business development sector and a commitment to responsible financial management, Golub Capital BDC continues to align its financial initiatives with its broader business objectives, aiming to generate value for its stakeholders and enhance its strategic positioning in the market.
