XNAS:GBDC Golub Capital BDC Inc Class B Quarterly Report 10-Q Filing - 6/30/2012

Effective Date 6/30/2012

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

 

FORM 10-Q

 

R                 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the Quarterly Period Ended June 30, 2012

 

OR

 

¨         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 814-00794

 

Golub Capital BDC, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware   27-2326940
(State or other jurisdiction of incorporation or organization)    (I.R.S. Employer Identification No.)

 

150 South Wacker Drive, Suite 800

Chicago, IL 60606

(Address of principal executive offices)

 

(312) 205-5050

(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 ¨

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).   Yes ¨ No   ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨ Accelerated filer þ
Non-accelerated filer  ¨  (Do not check if a smaller reporting company) Smaller reporting company ¨

 

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

 

As of August 6, 2012, the Registrant had 25,663,009 shares of common stock, $0.001 par value, outstanding.

 

 

 

 
 

 

Part I. Financial Information  
   
Item 1. Financial Statements 3
     
  Consolidated Statements of Financial Condition as of June 30, 2012 (unaudited) and September 30, 2011 3
     
  Consolidated Statements of Operations for the three and nine months ended June 30, 2012 (unaudited) and 2011 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the nine months ended June 30, 2012 (unaudited) and 2011 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the nine months ended June 30, 2012 (unaudited) and 2011 (unaudited) 6
     
  Consolidated Schedules of Investments as of June 30, 2012 (unaudited) and September 30, 2011 7
     
  Notes to Consolidated Financial Statements 17
     
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 39
     
Item 3. Quantitative And Qualitative Disclosures About Market Risk 58
     
Item 4. Controls and Procedures 59
     
Part II.  Other Information  
     
Item 1. Legal Proceedings 60
     
Item 1A. Risk Factors 60
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 60
     
Item 3. Defaults Upon Senior Securities 60
     
Item 4. Removed and Reserved 60
     
Item 5. Other Information 60
     
Item 6. Exhibits 61

 

2
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(In thousands, except share and per share data)

 

   June 30, 2012   September 30, 2011 
   (unaudited)     
Assets        
Investments, at fair value (cost of $635,252 and $462,961, respectively)  $636,632   $459,827 
Cash and cash equivalents   18,070    46,350 
Restricted cash and cash equivalents   45,059    23,416 
Interest receivable   3,893    3,063 
Unrealized appreciation on derivative instruments   149    - 
Cash collateral on deposit with custodian   1,287    21,162 
Deferred financing costs   6,082    5,345 
Other assets   350    481 
Total Assets  $711,522   $559,644 
           
Liabilities          
Debt  $329,800   $237,683 
Interest payable   2,269    1,066 
Management and incentive fees payable   4,070    1,608 
Unrealized depreciation on derivative instruments   -    1,986 
Accounts payable and accrued expenses   1,172    752 
Total Liabilities   337,311    243,095 
           
Net Assets          
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of June 30, 2012 and September 30, 2011   -    - 
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 25,663,009 and 21,733,903 shares issued and outstanding as of June 30, 2012 and September 30, 2011, respectively   26    22 
Paid in capital in excess of par   376,292    318,302 
Capital distributions in excess of net investment income   (3,660)   (398)
Net unrealized appreciation (depreciation) on investments and derivative instruments   4,197    (1,519)
Net realized (loss) gain on investments and derivative instruments   (2,644)   142 
Total Net Assets   374,211    316,549 
Total Liabilities and Total Net Assets  $711,522   $559,644 
           
Number of common shares outstanding   25,663,009    21,733,903 
Net asset value per common share  $14.58   $14.56 

 

See Notes to Consolidated Financial Statements.

 

3
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

(In thousands, except share and per share data)

 

   Three months ended June 30,   Nine months ended June 30, 
   2012   2011   2012   2011 
Investment income                    
Interest income  $14,811   $10,071   $41,263   $28,319 
Dividend income   -    -    377    - 
                     
Total investment income   14,811    10,071    41,640    28,319 
                     
Expenses                    
Interest and other debt financing expenses   2,865    1,637    7,811    4,681 
Base management fee   2,220    1,497    6,187    4,122 
Incentive fee   1,917    113    4,261    525 
Professional fees   538    500    1,685    1,558 
Administrative service fee   489    224    1,207    611 
General and administrative expenses   104    148    405    457 
                     
Total expenses   8,133    4,119    21,556    11,954 
                     
Net investment income   6,678    5,952    20,084    16,365 
                     
Net (loss) gain on investments                    
Net realized (loss) gain on investments   (70)   71    (5,002)   1,997 
Net realized gain (loss) on derivative instruments   1,228    -    2,216    - 
Net change in unrealized (depreciation) appreciation on investments   (795)   759    3,580    258 
Net change in unrealized (depreciation) appreciation on derivative instruments   (1,648)   (262)   2,136    (262)
                     
Net (loss) gain on investments   (1,285)   568    2,930    1,993 
                     
Net increase in net assets resulting from operations  $5,393   $6,520   $23,014   $18,358 
                     
Per Common Share Data                    
Basic and diluted earnings per common share  $0.21   $0.31   $0.97   $0.97 
Dividends and distributions declared per common share  $0.32   $0.32   $0.96   $0.95 
Basic and diluted weighted average common shares outstanding   25,639,680    21,319,348    23,803,762    18,923,395 

 

See Notes to Consolidated Financial Statements.

 

4
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Changes in Net Assets (unaudited)

(In thousands, except share data)

 

                   Net Unrealized         
               Capital   Appreciation   Net Realized Gain     
   Common Stock   Paid in Capital   Distributions   (Depreciation) on   (Loss) on Investments     
       Par   in Excess   in Excess of Net   Investments and   and Derivative   Total 
   Shares   Amount   of Par   Investment Income   Derivative Instruments   Instruments   Net Assets 
                             
Balance at September 30, 2010   17,712,444   $18   $258,568   $-   $1,995   $(40)  $260,541 
                                    
Issuance of common stock, net of offering and underwriting costs (1)   3,953,257    4    58,606    -    -    -    58,610 
Net increase in net assets resulting from operations   -    -    -    16,365    (4)   1,997    18,358 
Distributions to stockholders:                                   
Stock issued in connection with dividend reinvestment plan   68,202    -    1,128    -    -    -    1,128 
Dividends and distributions   -    -    -    (18,114)   -    -    (18,114)
Balance at June 30, 2011   21,733,903   $22   $318,302   $(1,749)  $1,991   $1,957   $320,523 
                                    
Balance at September 30, 2011   21,733,903   $22   $318,302   $(398)  $(1,519)  $142   $316,549 
Issuance of common stock, net of offering and underwriting costs (2)   3,825,000    4    56,463    -    -    -    56,467 
Net increase in net assets resulting from operations   -    -    -    20,084    5,716    (2,786)   23,014 
Distributions to stockholders:                                   
Stock issued in connection with dividend reinvestment plan   104,106    -    1,527    -    -    -    1,527 
Dividends and distributions   -    -    -    (23,346)   -    -    (23,346)
Balance at June 30, 2012   25,663,009   $26   $376,292   $(3,660)  $4,197   $(2,644)  $374,211 

 

(1) On April 6, 2011, Golub Capital BDC, Inc. closed on a public offering of 3,500,000 shares of its common stock at a public offering price of $15.75 per share. On May 2, 2011, Golub Capital BDC, Inc. sold an additional 453,257 shares of its common stock at a public offering price of $15.75 per share pursuant to the underwriters’ partial exercise of the over-allotment option.

 

(2) On February 3, 2012, Golub Capital BDC, Inc. closed on a public offering of 3,500,000 shares of its common stock at a public offering price of $15.35 per share. On March 1, 2012 Golub Capital BDC, Inc. sold an additional 325,000 shares of its common stock at a public offering price of $15.35 per share pursuant to the underwriters’ partial exercise of the over-allotment option.

 

See Notes to Consolidated Financial Statements.

 

5
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)

(In thousands)

 

   Nine Months Ended June 30, 
   2012   2011 
Cash flows from operating activities          
Net increase in net assets resulting from operations  $23,014   $18,358 
Adjustments to reconcile net increase in net assets resulting from operations  to net cash (used in) operating activities          
Amortization of deferred financing costs   1,072    564 
Amortization of discount and premium   (3,447)   (4,146)
Net realized loss (gain) on investments   5,002    (1,997)
Net realized (gain) loss on derivative instruments   (2,216)   - 
Net change in unrealized (appreciation) depreciation on investments   (3,580)   4 
Net change in unrealized (appreciation) depreciation on derivative instruments   (2,136)   - 
(Fundings of) revolving loans, net   (2,438)   (1,696)
Fundings of investments   (292,943)   (274,831)
Proceeds from principal payments and sales of portfolio investments   120,602    188,943 
Proceeds from derivative instruments   2,216    - 
Changes in operating assets and liabilities:          
Interest receivable   (830)   (618)
Cash collateral on deposit with custodian   19,875    (11,460)
Open trade receivable   -    (17,015)
Other assets   131    (185)
Interest payable   1,203    27 
Management and incentive fees payable   2,462    609 
Payable for investments purchased   -    (5,328)
Due to broker   -    860 
Accounts payable and accrued expenses   420    46 
Net cash (used in) operating activities   (131,593)   (107,865)
           
Cash flows from investing activities          
Net change in restricted cash and cash equivalents   (21,643)   2,492 
Net cash (used in) provided by investing activities   (21,643)   2,492 
           
Cash flows from financing activities          
Borrowings on debt   154,817    48,300 
Repayments of debt   (62,700)   - 
Capitalized debt financing costs   (1,810)   (1,654)
Proceeds from shares sold, net of underwriting costs   57,164    59,420 
Offering costs paid   (696)   (810)
Dividends and distributions paid   (21,819)   (16,985)
Net cash provided by financing activities   124,956    88,271 
           
Net change in cash and cash equivalents   (28,280)   (17,102)
           
Cash and cash equivalents, beginning of period   46,350    61,219 
           
Cash and cash equivalents, end of period  $18,070   $44,117 
           
Supplemental information:          
Cash paid during the period for interest  $5,537   $4,089 
Dividends and distributions declared during the period  $23,346   $18,114 

 

See Notes to Consolidated Financial Statements.

 

6
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited)

June 30, 2012

(In thousands)

 

                                      Percentage        
    Investment   Spread Above     Interest     Maturity     Principal           of     Fair  
    Type   Index(1)     Rate(2)     Date     Amount     Cost     Net Assets     Value  
Investments                                                            
Canada                                                            
Debt investments                                                            
Leisure, Amusement, Motion Pictures, Entertainment                                                            
Extreme Fitness, Inc.(5)(6)   Subordinated debt     N/A       14.50 %     11/2015     $ 2,870     $ 2,810       0.4 %   $ 1,435  
Extreme Fitness, Inc.   Senior loan     N/A       8.00 %     10/2012       389       389       0.1 %     389  
                                                             
Total Canada                                $ 3,259        3,199       0.5 %   $ 1,824  
Fair Value as percentage of Principal Amount                                                         56.0 %
                                                             
United States                                                            
Debt investments                                                            
Aerospace and Defense                                                            
Whitcraft LLC   Subordinated debt     N/A       12.00 %     12/2018     $ 1,877     $ 1,847       0.5 %   $ 1,877  
Automobile                                                            
ABRA, Inc.(3)   Subordinated debt     N/A       N/A (4)     04/2017       -       (23 )     -       -  
ABRA, Inc.(6)   Subordinated debt     N/A       13.50 %     04/2017       9,696       9,506       2.6       9,696  
American Driveline Systems, Inc.*   Senior loan     L + 5.50 %     7.00 %     01/2016       2,869       2,817       0.8       2,869  
American Driveline Systems, Inc.   Senior loan     P + 4.50 %     7.75 %     01/2016       282       274       0.1       282  
CLP Auto Interior Corporation*   Senior loan     L + 4.75 %     5.00 %     06/2013       3,070       3,070       0.8       2,947  
Federal-Mogul Corporation   Senior loan     L + 1.93 %     2.18 %     12/2014       1,981       1,934       0.5       1,890  
Federal-Mogul Corporation   Senior loan     L + 1.93 %     2.18 %     12/2015       1,011       986       0.3       964  
Heartland Automotive Services II, Inc.*   Senior loan     P + 4.00 %     7.25 %     01/2014       591       547       0.2       591  
Heartland Automotive Services II, Inc.(6)   Senior loan     P + 6.00 %     9.25 %     01/2014       451       417       0.1       451  
K&N Engineering, Inc.(3)   Senior loan     P + 4.25 %     N/A (4)     12/2016       -       (7 )     -       -  
K&N Engineering, Inc.   Senior loan     P + 4.25 %     7.50 %     12/2016       3,232       3,174       0.9       3,232  
                                  23,183       22,695       6.3       22,922  
Banking                                                            
Prommis Fin Co.*(5)(6)   Senior loan     L + 10.25 %     10.50 %     06/2015       191       191       -       162  
Prommis Fin Co.*(5)(6)   Senior loan     L + 10.25 %     10.50 %     06/2015       383       383       0.1       253  
Prommis Fin Co.*(5)(6)   Senior loan     L + 10.25 %     10.50 %     06/2015       191       191       -       -  
Prommis Fin Co.   Senior loan     L + 9.00 %     10.00 %     06/2015       82       81       -       82  
                                  847       846       0.1       497  
Beverage, Food and Tobacco                                                            
ABP Corporation*   Senior loan     L + 5.25 %     6.75 %     06/2016       4,547       4,476       1.2       4,547  
ABP Corporation(3)   Senior loan     L + 5.25 %     N/A (4)     06/2016       -       (6 )     -       -  
Ameriqual Group, LLC*   Senior loan     L + 5.00 %     6.50 %     03/2016       1,797       1,770       0.5       1,707  
Ameriqual Group, LLC*   Senior loan     L + 7.50 %     9.01 %     03/2016       842       829       0.2       757  
Atkins Nutrionals, Inc.   Senior loan     L + 8.75 %     10.25 %     12/2015       5,028       4,918       1.3       5,028  
Bertucci's Corporation*   Second lien     L + 11.14 %     14.14 %     07/2012       1,837       1,836       0.5       1,837  
Candy Intermediate Holdings, Inc.*   Senior loan     L + 6.25 %     7.50 %     06/2018       5,000       4,825       1.3       4,998  
First Watch Restaurants, Inc.*   Senior loan     P + 6.50 %     9.75 %     12/2016       11,559       11,352       3.1       11,559  
First Watch Restaurants, Inc.(3)   Senior loan     P + 6.50 %     N/A (4)     12/2016       -       (31 )     -       -  
First Watch Restaurants, Inc.(3)   Senior loan     P + 6.50 %     N/A (4)     12/2016       -       (31 )     -       -  
IL Fornaio (America) Corporation*   Senior loan     L + 5.25 %     6.50 %     06/2017       4,605       4,586       1.2       4,605  
It'Sugar LLC   Senior loan     L + 8.50 %     10.00 %     04/2017       4,266       4,184       1.1       4,180  
It'Sugar LLC   Subordinated debt     N/A       8.00 %     10/2017       1,707       1,707       0.5       1,707  
Julio & Sons Company*   Senior loan     L + 5.50 %     7.00 %     09/2016       7,139       7,079       1.9       7,139  
Julio & Sons Company(3)   Senior loan     L + 5.50 %     N/A (4)     09/2014       -       (17 )     -       -  
Julio & Sons Company(3)   Senior loan     L + 5.50 %     N/A (4)     09/2016       -       (13 )     -       -  
Noodles & Company*   Senior loan     L + 4.00 %     5.25 %     02/2016       1,609       1,597       0.4       1,609  
Richelieu Foods, Inc.*   Senior loan     L + 6.00 %     7.75 %     11/2015       2,139       2,100       0.5       2,032  
Richelieu Foods, Inc.   Senior loan     P + 5.00 %     8.25 %     11/2015       22       10       -       (8 )
                                  52,097       51,171       13.7       51,697  
Broadcasting and Entertainment                                                            
Univision Communications Inc.   Senior loan     L + 2.00 %     2.25 %     09/2014       5,000       4,960       1.3       4,919  
Building and Real Estate                                                            
ASP PDM Acquisition Co. LLC*   Senior loan     L + 6.25 %     7.75 %     12/2013       454       441       0.1       341  
Global Claims Services, Inc.*   Senior loan     L + 5.00 %     6.25 %     06/2018       833       821       0.2       820  
Global Claims Services, Inc.   Senior loan     L + 5.00 %     6.25 %     06/2018       7       5       -       5  
KHKI Acquisition, Inc.   Senior loan     P + 5.00 %     8.50 %     03/2013       2,626       2,625       0.6       2,101  
Tecta America Corp.   Senior loan     P + 5.75 %     9.00 %     03/2014       2,928       2,928       0.6       2,416  
                                  6,848       6,820       1.5       5,683  
Cargo Transport                                                            
TMW Systems, Inc.*   Senior loan     L + 4.25 %     5.77 %     05/2016       1,859       1,837       0.5       1,859  
Chemicals, Plastics and Rubber                                                            
Road Infrastructure Investment, LLC*   Senior loan     L + 5.00 %     6.25 %     03/2018       4,148       4,088       1.1       4,106  
Road Infrastructure Investment, LLC   Senior loan     L + 5.00 %     5.44 %     03/2017       365       321       0.1       356  
Solutia, Inc.   Senior loan     L + 2.75 %     3.50 %     08/2012       2,353       2,353       0.6       2,353  
                                  6,866       6,762       1.8       6,815  

 

See Notes to Consolidated Financial Statements.

 

7
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (Continued)

June 30, 2012

(In thousands)

 

                                        Percentage        
    Investment     Spread Above     Interest     Maturity     Principal           of Total     Fair  
    Type     Index(1)     Rate(2)     Date     Amount     Cost     Net Assets     Value  
Containers, Packaging and Glass                                                              
Fort Dearborn Company*   Senior loan       L + 4.75 %     6.53 %     08/2015     $ 1,373     $ 1,355       0.4 %   $ 1,373  
Fort Dearborn Company*   Senior loan       L + 5.25 %     7.04 %     08/2016       3,167       3,123       0.8       3,167  
                                    4,540       4,478       1.2       4,540  
Diversified Conglomerate Manufacturing                                                              
Oasis Outsourcing Holdings, Inc.(6)   Subordinated debt       N/A       13.00 %     04/2017       11,970       11,762       3.2       11,970  
Pasternack Enterprises, Inc.*   Senior loan       L + 4.50 %     6.00 %     02/2014       3,671       3,623       1.0       3,671  
Sunless Merger Sub, Inc.*   Senior loan       L + 5.00 %     6.26 %     07/2016       2,352       2,342       0.6       2,352  
Sunless Merger Sub, Inc.(3)   Senior loan       L + 5.00 %     N/A (4)     07/2016       -       (1 )     -       -  
Tecomet Inc.*   Senior loan       L + 5.25 %     7.00 %     12/2015       4,419       4,362       1.2       4,419  
Tecomet Inc.(3)   Senior loan       L + 5.25 %     N/A (4)     12/2015       -       (5 )     -       -  
Vintage Parts, Inc.*   Senior loan       L + 6.00 %     8.50 %     12/2013       83       83       -       83  
Vintage Parts, Inc.*   Senior loan       L + 8.00 %     9.75 %     12/2013       1,243       1,229       0.3       1,243  
Vintage Parts, Inc.*   Senior loan       L + 5.50 %     5.96 %     12/2013       5,950       5,925       1.6       5,950  
                                    29,688       29,320       7.9       29,688  
Diversified Conglomerate Service                                                              
API Healthcare Corporation*   Senior loan       L + 9.69 %     11.19 %     02/2017       9,710       9,535       2.6       9,710  
Benetech, Inc.*   Senior loan       L + 5.00 %     5.25 %     12/2013       8,845       8,715       2.4       8,845  
Compass Group Diversified Holdings, LLC*   Senior loan       L + 5.00 %     6.50 %     10/2017       8,429       8,048       2.2       8,410  
Digital Technology International, LLC   Senior loan       P + 6.00 %     9.25 %     09/2016       309       301       0.1       309  
Digital Technology International, LLC   Senior loan       L + 7.25 %     8.75 %     09/2016       6,373       6,264       1.7       6,373  
Document Technologies, LLC(3)   Senior loan       P + 4.25 %     N/A (4)     12/2016       -       (16 )     -       -  
Document Technologies, LLC   Senior loan       L + 5.00 %     6.50 %     12/2016       4,079       4,007       1.1       4,079  
EAG, Inc.*   Senior loan       P + 3.50 %     6.75 %     07/2017       2,663       2,625       0.7       2,663  
Employment Law Training, Inc. *   Senior loan       L + 7.50 %     9.00 %     12/2016       18,333       17,912       4.8       17,967  
Employment Law Training, Inc. (3)   Senior loan       L + 7.50 %     N/A (4)     12/2016       -       (23 )     -       (25 )
Evolution1, Inc.*   Senior loan       L + 4.75 %     6.25 %     06/2016       4,631       4,576       1.2       4,631  
Evolution1, Inc.(3)   Senior loan       L + 4.75 %     N/A (4)      06/2016       -       (20 )     -       -  
Evolution1, Inc.(3)   Senior loan       L + 4.75 %     N/A (4)     06/2016       -       (4 )     -       -  
HighJump Acquisition LLC(3)   Senior loan       L + 8.75 %     N/A (4)      07/2016       -       (13 )     -       -  
HighJump Acquisition LLC   Senior loan       L + 8.75 %     10.00 %     07/2016       5,455       5,388       1.5       5,455  
MSC.Software Corporation*   Senior loan       L + 7.66 %     9.16 %     12/2016       6,319       6,206       1.7       6,319  
NS Holdings, Inc.*   Senior loan       L + 7.91 %     9.29 %     06/2015       260       255       0.1       260  
NS Holdings, Inc.*   Senior loan       L + 6.31 %     7.68 %     06/2015       1,991       1,967       0.5       1,991  
QuadraMed Corporation*   Senior loan       L + 5.25 %     6.75 %     07/2016       3,321       3,248       0.9       3,221  
The Service Companies, Inc.*   Senior loan       L + 6.50 %     9.00 %     03/2014       6,676       6,612       1.8       6,676  
Sumtotal Systems, Inc.*   Senior loan       L + 4.00 %     5.25 %     12/2015       1,434       1,421       0.4       1,434  
                                    88,828       87,004       23.7       88,318  
Diversified Natural Resources, Precious Metals, and Minerals                                                              
Metal Spinners, Inc.*   Senior loan       L + 6.50 %     8.00 %     12/2014       1,640       1,595       0.4       1,640  
Metal Spinners, Inc.*   Senior loan       L + 6.50 %     8.00 %     12/2014       3,013       2,934       0.8       3,013  
                                    4,653       4,529       1.2       4,653  
Electronics                                                              
Blue Coat Systems, Inc.*   Second lien       L + 10.00 %     11.50 %     08/2018       5,424       5,270       1.5       5,458  
Blue Coat Systems, Inc.   Senior loan       L + 6.00 %     7.50 %     02/2018       8,136       7,983       2.2       8,131  
Cape Electrical Supply LLC*(6)   Senior loan       L + 6.25 %     7.50 %     11/2013       1,598       1,560       0.4       1,598  
Ecommerce Industries, Inc.*   Senior loan       L + 8.34 %     9.59 %     10/2016       13,708       13,491       3.7       13,708  
Ecommerce Industries, Inc.(3)   Senior loan       L + 6.75 %     N/A (4)     10/2016       -       (29 )     -       -  
Entrust, Inc.*   Senior loan       L + 7.28 %     8.81 %     03/2017       4,163       4,112       1.1       4,163  
Entrust, Inc.*   Senior loan       L + 7.29 %     8.82 %     03/2017       8,263       8,147       2.2       8,263  
Rogue Wave Holdings, Inc.*   Senior loan       L + 10.00 %     11.25 %     08/2016       4,071       4,031       1.1       4,030  
Syncsort Incorporated*   Senior loan       L + 5.50 %     7.50 %     03/2015       8,145       8,020       2.2       8,145  
Syncsort Incorporated(3)   Senior loan       L + 5.50 %     N/A (4)     03/2015       -       (5 )     -       -  
Time-O-Matic, Inc.(6)   Subordinated debt       N/A       13.25 %     12/2016       11,524       11,339       3.1       11,524  
                                    65,032       63,919       17.5       65,020  
Farming and Agriculture                                                              
AGData, L.P.   Senior loan       L + 6.25 %     7.75 %     08/2016       2,853       2,819       0.8       2,853  
Finance                                                              
Bonddesk Group LLC*   Senior loan       L + 5.00 %     6.50 %     09/2016       1,013       1,004       0.3       1,013  
Pillar Processing LLC*(5)   Senior loan       P + 4.25 %     7.50 %     11/2013       2,972       2,966       0.6       2,080  
Pillar Processing LLC*(5)   Senior loan       N/A       14.50 %     05/2014       3,125       3,125       0.1       313  
                                    7,110       7,095       1.0       3,406  

 

See Notes to Consolidated Financial Statements.

 

8
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (Continued)

June 30, 2012

(In thousands)

 

                                      Percentage        
    Investment   Spread Above     Interest     Maturity     Principal           of Total     Fair  
    Type   Index(1)     Rate(2)     Date     Amount     Cost     Net Assets     Value  
Healthcare, Education and Childcare                                                            
Advanced Pain Management Holdings, Inc.(6)   Subordinated debt     N/A       14.00 %     06/2016     $ 7,918     $ 7,779       2.1 %   $ 7,918  
Avatar International, LLC*   Senior loan     L + 7.50 %     8.75 %     09/2016       7,905       7,789       2.1       7,905  
Avatar International, LLC(3)   Senior loan     L + 7.50 %     N/A (4)     09/2016       -       (8 )     -       -  
Avatar International, LLC   Senior loan     L + 8.00 %     9.26 %     09/2016       1,705       1,687       0.5       1,705  
Campus Management Acquisition Corp.   Second lien     L + 10.52 %     12.27 %     09/2015       5,221       5,153       1.3       4,803  
CHS/Community Health Systems   Senior loan     L + 2.25 %     2.58 %     07/2014       5,085       5,061       1.3       5,023  
Community Hospices of America, Inc.*   Senior loan     L + 5.50 %     7.25 %     12/2015       5,023       4,954       1.3       5,023  
Community Hospices of America, Inc.(3)   Senior loan     L + 5.50 %     N/A (4)     12/2015       -       (5 )     -       -  
Community Hospices of America, Inc.(6)   Subordinated debt     L + 11.75 %     13.75 %     06/2016       1,861       1,829       0.5       1,861  
DDC Center Inc.*   Senior loan     L + 6.50 %     9.50 %     10/2014       8,276       8,280       2.2       8,276  
DDC Center Inc.*   Senior loan     L + 6.50 %     9.50 %     12/2012       227       227       0.1       227  
DDC Center Inc.   Senior loan     P + 5.25 %     10.75 %     10/2013       91       91       -       91  
Delta Educational Systems, Inc.*   Senior loan     L + 5.00 %     7.00 %     11/2012       2,784       2,767       0.7       2,784  
Dialysis Newco, Inc.(6)   Subordinated debt     N/A       13.00 %     09/2018       8,752       8,627       2.3       8,620  
G & H Wire Company, Inc.*   Senior loan     L + 5.50 %     7.25 %     12/2015       5,550       5,483       1.5       5,550  
G & H Wire Company, Inc.(3)   Senior loan     L + 5.50 %     N/A (4)     12/2015       -       (9 )     -       -  
Hospitalists Management Group, LLC   Senior loan     L + 4.50 %     6.00 %     05/2017       415       404       0.1       397  
Hospitalists Management Group, LLC   Senior loan     P + 3.50 %     6.75 %     05/2017       3,996       3,915       1.0       3,916  
Hospitalists Management Group, LLC(3)   Senior loan     P + 3.50 %     N/A (4)     05/2017       -       (11 )     -       (18 )
The Hygenic Corporation*   Senior loan     L + 2.50 %     2.74 %     04/2013       2,224       2,207       0.6       2,202  
Integrated DNA Technologies, Inc.(6)   Subordinated debt     N/A       14.00 %     04/2015       450       436       0.1       450  
Integrated DNA Technologies, Inc.(6)   Subordinated debt     N/A       14.00 %     04/2015       450       446       0.1       450  
Integrated DNA Technologies, Inc.(6)   Subordinated debt     N/A       14.00 %     04/2015       3,800       3,763       1.0       3,800  
Maverick Healthcare Group, LLC *   Senior loan     L + 5.50 %     7.25 %     12/2016       2,177       2,150       0.6       2,177  
National Healing Corporation*   Second lien     L + 10.00 %     11.50 %     11/2018       17,976       16,926       4.8       17,976  
National Healing Corporation   Senior loan     L + 6.75 %     8.25 %     11/2017       3,578       3,416       1.0       3,578  
NeuroTherm, Inc.*   Senior loan     L + 5.00 %     6.50 %     02/2016       1,623       1,596       0.4       1,623  
NeuroTherm, Inc.   Senior loan     L + 5.00 %     6.50 %     02/2016       115       109       -       115  
Pentec Acquisition Sub, Inc.*   Senior loan     L + 5.25 %     6.50 %     05/2018       2,271       2,226       0.6       2,226  
Pentec Acquisition Sub, Inc.(3)   Senior loan     L + 5.25 %     N/A (4)     05/2017       -       (4 )     -       (4 )
PhysioTherapy Associates Holdings, Inc.*   Senior loan     L + 4.75 %     6.00 %     04/2018       578       567       0.2       576  
Reliant Pro ReHab, LLC*   Senior loan     L + 4.75 %     6.00 %     06/2016       3,649       3,598       1.0       3,649  
Reliant Pro ReHab, LLC(3)   Senior loan     L + 4.75 %     N/A (4)     06/2016       -       (18 )     -       -  
Reliant Pro ReHab, LLC   Senior loan     P + 3.75 %     7.00 %     06/2016       372       364       0.1       372  
Renaissance Pharma (U.S.) Holdings Inc.   Senior loan     P + 4.25 %     7.50 %     06/2017       82       76       -       76  
Renaissance Pharma (U.S.) Holdings Inc.   Senior loan     P + 4.25 %     7.50 %     06/2017       1,369       1,342       0.4       1,342  
Surgical Information Systems, LLC   Second lien     L + 7.39 %     8.89 %     12/2015       4,291       4,231       1.1       4,291  
TIDI Products, LLC*   Senior loan     L + 4.75 %     6.27 %     05/2015       2,053       2,025       0.5       2,053  
TIDI Products, LLC(3)   Senior loan     L + 4.75 %     N/A (4)     05/2015       -       (4 )     -       -  
WIL Research Company, Inc.*   Senior loan     L + 5.25 %     6.75 %     04/2018       794       782       0.2       790  
                                  112,661       110,247       29.7       111,823  
Home and Office Furnishings, Housewares, and Durable Consumer                                                            
Top Knobs USA, Inc.*   Senior loan     L + 5.79 %     7.75 %     11/2016       1,111       1,095       0.3       1,111  
WII Components, Inc.*   Senior loan     L + 4.75 %     6.25 %     07/2016       1,755       1,734       0.5       1,755  
WII Components, Inc.   Senior loan     P + 3.75 %     7.00 %     07/2016       41       40       -       41  
Zenith Products Corporation*   Senior loan     L + 5.00 %     5.61 %     09/2013       3,449       3,423       0.9       3,346  
                                  6,356       6,292       1.7       6,253  
Leisure, Amusement, Motion Pictures and Entertainment                                                            
Competitor Group, Inc.*   Senior loan     L + 8.00 %     9.50 %     01/2017       18,179       17,875       4.9       18,179  
Competitor Group, Inc.(3)   Senior loan     L + 8.00 %     N/A (4)     01/2017       -       (9 )     -       -  
Cortz, Inc.*   Senior loan     L + 5.50 %     7.00 %     03/2014       6,781       6,723       1.8       6,781  
Octane Fitness, LLC*   Senior loan     L + 5.50 %     7.00 %     12/2015       4,675       4,543       1.2       4,675  
Pride Manufacturing Company, LLC*   Senior loan     L + 5.50 %     7.25 %     11/2015       737       727       0.2       723  
                                  30,372       29,859       8.1       30,358  

 

See Notes to Consolidated Financial Statements.

 

9
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (Continued)

June 30, 2012

(In thousands)

 

                                      Percentage        
    Investment   Spread Above     Interest     Maturity     Principal           of Total     Fair  
    Type   Index(1)     Rate(2)     Date     Amount     Cost     Net Assets     Value  
Personal and Non-Durable Consumer Products                                                            
Dr. Miracles, Inc.*(6)   Senior loan     L + 7.50 %     10.00 %     03/2014     $ 3,077     $ 3,059       0.8 %   $ 2,892  
Massage Envy, LLC*   Senior loan     L + 4.75 %     6.25 %     06/2016       6,516       6,452       1.7       6,516  
Massage Envy, LLC   Senior loan     L + 4.75 %     6.25 %     06/2016       104       103       -       104  
Strategic Partners, Inc.(6)   Subordinated debt     N/A       14.00 %     02/2017       9,636       9,449       2.7       9,925  
                                  19,333       19,063       5.2       19,437  
Personal, Food and Miscellaneous Services                                                            
Affordable Care Inc.*   Senior loan     L + 5.00 %     6.51 %     12/2015       3,659       3,619       1.0       3,659  
Affordable Care Inc.(3)   Senior loan     L + 5.00 %     N/A (4)     12/2015       -       (7 )     -       -  
Automatic Bar Controls, Inc.*   Senior loan     L + 6.00 %     7.51 %     03/2016       1,013       1,002       0.3       962  
Automatic Bar Controls, Inc.(3)   Senior loan     P + 4.75 %     N/A (4)     03/2016       -       (2 )     -       (8 )
Focus Brands Inc.   Second lien     L + 9.00 %     10.25 %     08/2018       6,481       6,358       1.7       6,530  
Focus Brands Inc.   Senior loan     L + 5.00 %     6.27 %     02/2018       6,196       6,137       1.7       6,223  
Ignite Restaurant Group, Inc.*   Senior loan     L + 4.75 %     6.25 %     03/2016       4,170       4,096       1.1       4,170  
NVA Acquisition Company   Senior loan     L + 4.25 %     5.50 %     06/2016       1,886       1,871       0.5       1,848  
PMI Holdings, Inc.   Senior loan     L + 5.25 %     6.25 %     06/2017       2,740       2,713       0.7       2,713  
PMI Holdings, Inc.   Senior loan     P + 4.25 %     7.50 %     06/2017       16       12       -       12  
Restaurant Technologies, Inc.*   Senior loan     L + 4.75 %     6.00 %     05/2017       1,080       1,071       0.3       1,058  
Restaurant Technologies, Inc.   Senior loan     L + 4.75 %     6.00 %     05/2017       117       116       -       114  
Trusthouse Service Group, Inc.(3)   Senior loan     P + 4.25 %     N/A (4)     06/2018       -       (4 )     -       (4 )
Trusthouse Service Group, Inc.   Senior loan     P + 4.25 %     7.50 %     06/2017       24       19       -       19  
Trusthouse Service Group, Inc.   Senior loan     L + 5.25 %     6.75 %     06/2018       2,983       2,931       0.8       2,924  
Vetcor Professional Practices LLC*   Senior loan     L + 6.00 %     7.50 %     02/2015       9,773       9,773       2.6       9,773  
                                  40,138       39,705       10.7       39,993  
Personal Transportation                                                            
PODS Funding Corp. II*   Senior loan     L + 7.00 %     8.50 %     11/2016       6,080       5,919       1.6       6,080  
PODS Funding Corp. II(6)   Subordinated debt     N/A       21.00 %     11/2017       2,802       2,802       0.7       2,802  
PODS Funding Corp. II(6)   Subordinated debt     N/A       21.00 %     11/2017       579       579       0.2       579  
PODS Funding Corp. II(6)   Second lien     N/A       15.50 %     05/2017       444       438       0.1       444  
PODS Funding Corp. II(6)   Second lien     N/A       15.50 %     05/2017       2,081       2,027       0.6       2,081  
PODS Funding Corp. II   Senior loan     L + 7.00 %     8.50 %     11/2016       788       768       0.2       788  
                                  12,774       12,533       3.4       12,774  
Printing and Publishing                                                            
Market Track, LLC*   Senior loan     L + 7.75 %     9.25 %     11/2015       12,160       11,999       3.2       12,160  
Market Track, LLC(3)   Senior loan     L + 7.75 %     N/A (4)     11/2015       -       (16 )     -       -  
Trade Service Company, LLC*   Senior loan     L + 5.25 %     6.75 %     06/2013       1,113       1,111       0.3       1,113  
Trade Service Company, LLC*(6)   Senior loan     N/A       14.00 %     06/2013       765       764       0.2       765  
Trade Service Company, LLC(3)   Senior loan     L + 5.25 %     N/A (4)     06/2013       -       (1 )     -       -  
                                  14,038       13,857       3.7       14,038  
Retail Stores                                                            
Barcelona Restaurants, LLC*   Senior loan     L + 10.00 %     11.50 %     03/2017       4,976       4,885       1.3       4,976  
Barcelona Restaurants, LLC(3)   Senior loan     L + 10.00 %     N/A (4)      03/2017       -       (6 )     -       -  
Bojangles' Restaurants, Inc.*   Senior loan     L + 6.50 %     8.00 %     08/2017       2,872       2,693       0.8       2,876  
Chuy's OPCO, Inc.   Senior loan     L + 7.00 %     8.50 %     05/2016       158       155       -       158  
Chuy's OPCO, Inc.   Senior loan     L + 7.83 %     9.33 %     05/2016       997       980       0.3       997  
Chuy's OPCO, Inc.   Senior loan     L + 7.00 %     8.50 %     05/2016       15,112       14,888       4.0       15,112  
DTLR, Inc.*   Senior loan     L + 8.00 %     11.00 %     12/2015       8,009       7,902       2.1       8,009  
The Marshall Retail Group, LLC*   Senior loan     L + 6.50 %     8.00 %     04/2013       10,549       10,360       2.8       10,549  
The Marshall Retail Group, LLC(3)   Senior loan     L + 6.50 %     N/A (4)     04/2013       -       (16 )     -       -  
Michaels Stores, Inc.   Senior loan     L + 2.25 %     2.75 %     10/2013       5,000       5,006       1.3       4,992  
Restaurant Holding Company, LLC   Senior loan     L + 7.50 %     9.03 %     02/2017       9,978       9,793       2.7       10,028  
Rubio's Restaurants, Inc.*(6)   Senior loan     L + 7.75 %     9.50 %     06/2015       8,353       8,245       2.2       8,353  
Vision Source L.P.*   Senior loan     L + 6.75 %     8.00 %     04/2016       13,286       13,077       3.6       13,286  
Vision Source L.P.(3)   Senior loan     L + 6.75 %     N/A (4)     04/2016       -       (9 )     -       -  
                                  79,290       77,953       21.1       79,336  
Telecommunications                                                            
Hosting.com, Inc.*   Senior loan     L + 4.50 %     5.75 %     05/2014       848       838       0.2       848  
Hosting.com, Inc.(3)   Senior loan     L + 4.50 %     N/A (4)     05/2014       -       (2 )     -       -  
NameMedia, Inc.   Senior loan     L + 6.00 %     7.50 %     11/2014       9       9       -       9  
NameMedia, Inc.   Senior loan     L + 6.00 %     7.50 %     11/2014       2,224       2,192       0.6       2,224  
West Corporation(3)   Senior loan     L + 2.00 %     N/A (4)     10/2012       -       (37 )     (0.1 )     (200 )
                                  3,081       3,000       0.7       2,881  
Utilities                                                            
PowerPlan Consultants, Inc.*   Senior loan     P + 4.25 %     7.50 %     05/2014       5,176       5,103       1.4       5,176  
PowerPlan Consultants, Inc.(3)   Senior loan     P + 4.25 %     N/A (4)     05/2015       -       (2 )     -       -  
                                  5,176       5,101       1.4       5,176  
                                                             
Total debt investments United States                               $ 624,500     $ 613,712       164.8 %   $ 616,816  
                                                             
Fair Value as a percentage of Principal Amount                                                         98.8 %

 

See Notes to Consolidated Financial Statements.

 

10
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (Continued)

June 30, 2012

(In thousands, except derivative contracts)

 

                          Principal           Percentage        
    Investment   Spread Above     Interest     Maturity     Amount/Shares/           of Total     Fair  
    Type   Index(1)     Rate(2)     Date     Contracts     Cost     Net Assets     Value  
Equity investments                                                            
Aerospace and Defense                                                            
Whitcraft LLC   Common stock     N/A       N/A       N/A       1     $ 670       0.2 %   $ 670  
Whitcraft LLC   Warrant     N/A       N/A       N/A       -       -       -       117  
                                          670       0.2       787  
Automobile                                                            
ABRA, Inc.   LLC interest     N/A       N/A       N/A       1       1,471       0.4       1,471  
K&N Engineering, Inc.   Common stock     N/A       N/A       N/A       -       4       -       4  
K&N Engineering, Inc.   Preferred stock A     N/A       N/A       N/A       -       62       -       62  
K&N Engineering, Inc.   Preferred stock B     N/A       N/A       N/A       -       18       -       18  
                                          1,555       0.4       1,555  
Banking                                                            
Prommis Solutions Inc.*   Preferred LLC interest     N/A       N/A       N/A       6       472       -       -  
Prommis Solutions Inc.*   A-1 LLC interset     N/A       N/A       N/A       -       -       -       -  
Prommis Solutions Inc.*   A-2 LLC interest     N/A       N/A       N/A       -       -       -       -  
                                          472       -       -  
Beverage, Food and Tobacco                                                            
Atkins Nutrionals, Inc.   LLC interest     N/A       N/A       N/A       57       796       0.3       1,064  
First Watch Restaurants, Inc.   Common stock     N/A       N/A       N/A       7       691       0.2       691  
Julio & Sons Company   LLC interest     N/A       N/A       N/A       521       521       0.2       619  
Richelieu Foods, Inc.   LP interest     N/A       N/A       N/A       220       220       0.1       189  
                                          2,228       0.8       2,563  
Diversified Conglomerate Manufacturing                                                            
Oasis Outsourcing Holdings, Inc.   LLC interest     N/A       N/A       N/A       1,088       1,088       0.4       1,337  
Sunless Merger Sub, Inc.   Preferred stock     N/A       N/A       N/A       -       148       -       148  
                                          1,236       0.4       1,485  
Diversified Conglomerate Service                                                            
Document Technologies, LLC   LLC interest     N/A       N/A       N/A       24       490       0.1       490  
Employment Law Training, Inc.   LP interest     N/A       N/A       N/A       666       666       0.2       666  
                                          1,156       0.3       1,156  
Healthcare, Education and Childcare                                                            
Advanced Pain Management Holdings, Inc.   Common stock     N/A       N/A       N/A       67       67       -       63  
Advanced Pain Management Holdings, Inc.   Preferred stock     N/A       N/A       N/A       13       1,273       0.3       1,188  
Avatar International, LLC   LP interest     N/A       N/A       N/A       7       695       0.2       695  
Dialysis Newco, Inc.   LLC interest     N/A       N/A       N/A       871       871       0.2       871  
G & H Wire Company, Inc.   LP interest     N/A       N/A       N/A       -       102       -       102  
Hospitalists Management Group, LLC   Common stock     N/A       N/A       N/A       -       38       -       38  
National Healing Corporation   Preferred stock     N/A       N/A       N/A       695       799       0.3       1,020  
NeuroTherm, Inc.   Common stock     N/A       N/A       N/A       1       569       0.2       569  
Pentec Holdings, Inc.   Preferred stock     N/A       N/A       N/A       1       116       -       116  
Reliant Pro ReHab, LLC   Preferred stock     N/A       N/A       N/A       2       264       0.1       263  
Surgical Information Systems, LLC   Common stock     N/A       N/A       N/A       4       414       0.1       414  
                                          5,208       1.4       5,339  
Home and Office Furnishings, Housewares, and Durable Consumer                                                            
Top Knobs USA, Inc.   Common stock     N/A       N/A       N/A       3       73       -       73  
                                                             
Leisure, Amusement, Motion Pictures and Entertainment                                                            
Competitor Group, Inc.   Preferred stock     N/A       N/A       N/A       199       88       0.1       193  
Competitor Group, Inc.   Common stock     N/A       N/A       N/A       9       87       -       107  
                                          175       0.1       300  
Personal and Non-Durable Consumer Products                                                            
Strategic Partners, Inc.   LLC interest     N/A       N/A       N/A       169       1,691       0.3       1,203  
                                                             
Personal Transportation                                                            
PODS Funding Corp. II   Warrant     N/A       N/A       N/A       224       -       -       -  
                                                             
Retail Stores                                                            
Barcelona Restaurants, LLC   LP interest     N/A       N/A       N/A       1,996       1,996       0.5       1,996  
Rubio's Restaurants, Inc.   Preferred stock     N/A       N/A       N/A       199       945       0.2       599  
Vision Source L.P.   Common stock     N/A       N/A       N/A       9       936       0.3       936  
                                          3,877       1.0       3,531  
                                                             
Total equity investments United States                                       $ 18,341       4.8 %   $ 17,992  
                                                             
Total United States                                       $ 632,053       169.6 %   $ 634,808  
                                                             
Total investments                                     $ 635,252       170.1 %   $ 636,632  
                                                             
Derivative investments(7)                                                            
Futures contracts sold (Note 7)   Futures contracts     N/A       N/A       09/2012       243     $ -       - %   $ 75  

 

* Denotes that all or a portion of the loan secures the notes offered in the Debt Securitization (as defined in Note 6).

(1)The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate ("LIBOR") "L" or Prime "P" and which reset daily, quarterly or semiannually. For each we have provided the spread over LIBOR or Prime and the weighted average current interest rate in effect at June 30, 2012. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable.
(2)For portfolio companies with multiple interest rate contracts, the interest rate shown is a weighted average current interest rate in effect at June 30, 2012.
(3)The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par. The negative cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.
(4)The entire commitment was unfunded at June 30, 2012. As such, no interest is being earned on this investment.
(5)Loan was on non-accrual status as of June 30, 2012, meaning that the Company has ceased recognizing interest income on the loan.
(6)A portion of the interest may be deferred through a payment-in-kind ("PIK") rate option.
(7)As of June 30, 2012, the Company also had a $74 receivable from a total return swap ("TRS"), which was terminated on April 11, 2012.

 

See Notes to Consolidated Financial Statements.

 

11
 

 

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments

September 30, 2011

(In thousands)

 

                                      Percentage        
    Investment   Spread Above     Interest     Maturity     Principal           of     Fair  
    Type   Index(1)     Rate(2)     Date     Amount     Cost     Net Assets     Value  
Investments                                                            
Canada                                                            
Debt investments                                                            
Leisure, Amusement, Motion Pictures, Entertainment                                                            
Extreme Fitness, Inc.(6)   Subordinated debt     N/A       14.50 %     11/2015     $ 2,799     $ 2,748       0.8 %   $ 2,799  
                                                             
Total Canada                               $ 2,799     $ 2,748       0.8 %   $ 2,799