Golub Capital BDC (NASDAQ:GBDC) Q3 2022 Earnings Conference Call August 11, 2022 11:00 AM ET

Company Participants

David Golub - Chief Executive Officer

Gregory Robbins - Senior Managing Director

Jon Simmons - Managing Director

Chris Ericson - Chief Financial Officer

Conference Call Participants

Finian O'Shea - Wells Fargo Securities

Paul Johnson - KBW

Robert Dodd - Raymond James

Operator

Welcome to GBDC's June 30, 2022 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 home page 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, CEO of GBDC. David?

David Golub

Thanks, Jon. Hello everybody, and thanks for joining us today. I'm joined by Chris Ericson, our Chief Financial Officer; Gregory Robbins, Senior Managing Director; and Jon Simmons, Managing Director at Golub Capital.

Yesterday, we issued our earnings press release for the quarter ended June 30, and we posted an earnings presentation on our website. We'll be referring to this presentation through the call today.

For those of you who are new to GBDC, our investment strategy is and since inception it has been to focus on providing first-lien senior secured loans to healthy resilient middle-market companies that are backed by strong partnership-oriented private equity sponsors.

Let me start with the headline for this quarter. The headline is that GBDC's results were fundamentally solid, despite a major downdraft in credit and equity markets and despite a volatile and uncertain economic environment.

GBDC's borrowers continue to perform well, realized losses remain low, and net investment income stayed strong. While unrealized losses, primarily due to spread widening, did impact results, we believe these unrealized losses are in general not due to fundamental credit issues and that they're likely to reverse over time. We remain focused, as usual, on minimizing realized credit losses.