Golub Capital BDC, Inc. (NASDAQ:GBDC), a business development company with a market capitalization of $4.1 billion and an impressive 12.4% dividend yield, has increased its borrowing capacity and amended an equity distribution agreement, according to recent SEC filings. According to InvestingPro data, the company maintains strong financial health with a "GREAT" overall rating.
On Monday, GBDC amended its existing equity distribution agreement, initially established on October 6, 2023. The amendment clarifies settlement mechanics and periods during which GBDC can request the Placement Agents to sell shares under the "at-the-market" offering program. The program allows for the sale of common stock shares up to an aggregate offering of $250 million. The Placement Agents, Golub Capital LLC, Keefe, Bruyette & Woods, Inc., and Regions Securities LLC, remain unchanged in their roles.
Furthermore, today, GBDC has expanded its Senior Secured Revolving Credit Facility through an agreement with JPMorgan Chase (NYSE:JPM) Bank, N.A., and other lenders. The commitment increase agreement raises the total commitments from $1.8975 billion to $1.9975 billion.
This increase was facilitated by the credit facility's accordion feature, which allows for an expansion up to $2 billion under certain conditions. With a strong current ratio of 5.23, InvestingPro analysis shows the company's liquid assets comfortably exceed its short-term obligations.
Golub Capital BDC, Inc., headquartered in New York, is a publicly traded business development company that invests in middle-market companies. The stock has delivered a solid 13.7% year-to-date return and maintains relatively low volatility with a beta of 0.56.
For detailed insights and additional analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with deep-dive analysis and actionable intelligence.
In other recent news, Golub Capital BDC, Inc. has issued an additional $150 million in 6.000% notes due 2029. This issuance increases the total principal amount of the company's 6.000% notes to $750 million. The notes are unsecured and rank equally with the company's existing and future unsecured indebtedness.
In the company's recent financial performance, it reported a strong fiscal year 2024 with an adjusted Net Investment Income (NII) per share of $0.47 for the fourth quarter and a full fiscal year adjusted NII return on equity of 12.9%. However, there was a slight decrease in net asset value (NAV) per share to $15.19.
In terms of future expectations, Golub Capital's management anticipates favorable market conditions in 2025, citing lower interest rates and reduced political uncertainty as potential contributing factors. The company also foresees increased pressure on private equity firms to sell off investments and a potential rise in mergers and acquisitions activity.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.