Golub Capital BDC (NASDAQ:GBDC) Q3 2023 Earnings Conference Call August 8, 2023 11:00 AM ET

Company Participants

David Golub - CEO

Chris Ericson - CFO & Treasurer

Matt Benton - COO

Conference Call Participants

Robert Dodd - Raymond James

Ryan Lynch - KBW

Operator

Hello, everyone, and welcome to GBDC's June 30, 2023 Quarterly Earnings Call. Before we begin, I'd like to take a moment to remind our listeners that remarks made during this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Statements other than statements of historical facts made during this call 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 in the forward-looking statements as a result of a number of factors, including those described from time-to-time in GBDC's SEC filings.

For materials we intend to refer to on today's earnings call, please visit the Investor Resources tab on the homepage of our website, which is www.golubcapitalbdc.com and click on the Events Presentations link. Our earnings release is also available on our website in the Investor Resources section. As a reminder, this call is being recorded.

With that, I'm pleased to turn the call over to David Golub, Chief Executive Officer of GBDC.

David Golub

Hello, everybody, and thanks for joining us today. I'm joined by Chris Ericson, our CFO and Matt Benton, our Chief Operating Officer. For those of you who are new to GBDC, our investment strategy is, and since inception, has been providing first-lien senior secured loans to healthy middle-market companies that are backed by strong partnership-oriented private equity sponsors.

We have a lot to talk about today. It was an eventful quarter. Record adjusted net investment income of $0.44 per share, strong credit results, an $0.08 per share dividend increase, $0.04 of that from an increase in the base dividend and $0.04 from implementation of the new variable supplemental dividend framework. A $0.10 per share increase in NAV and a permanent reduction in the base management fee going forward to 1%.

Yesterday, we issued press releases describing both GBDC's quarterly earnings and the management fee reduction. We also posted two presentations on our website, and we'll be referring to both of them on this call.

I'm going to start by discussing the management fee reduction and then my colleagues and I will walk you through the quarter, we'll plan on taking questions at the end. On August 3, GBDC's Board approved a permanent reduction in the base management fee rate from 1.375% per annum to 1% per annum, effective July 1.