NEW YORK--(BUSINESS WIRE)--Aug 2, 2018--Goldman Sachs BDC, Inc. (“GS BDC” or the “Company”) (NYSE:GSBD) today announced its financial results for the second quarter ended June 30, 2018 and filed its Form 10-Q with the U.S. Securities and Exchange Commission.

QUARTERLY HIGHLIGHTS

Net investment income for the quarter ended June 30, 2018 was $0.50 per share, equating to an annualized net investment income yield on book value of 11.1%; The Company announced a third quarter dividend of $0.45 per share payable to shareholders of record as of September 28, 2018; 1 The Company received stockholder approval to reduce its asset coverage requirement to 150%, which provides the Company with added investment flexibility; New investment commitments and fundings were $92.6 million and $58.9 million, respectively; sales and repayments totaled $79.6 million; 2 Investments on non-accrual represented 0.7% and 0.8% of the total investments at fair value and amortized cost, respectively; 2 and Subsequent to quarter-end, the Company closed $40.0 million aggregate principal amount of 4.50% convertible notes due April 2022.

SELECTED FINANCIAL HIGHLIGHTS

INVESTMENT ACTIVITY 2

During the three months ended June 30, 2018, new investment commitments and fundings were $92.6 million and $58.9 million, respectively. The new investment commitments were across seven new portfolio companies and four existing portfolio companies. The Company had sales and repayments of $79.6 million, comprised of $62.7 million from the full repayment of investments in three portfolio companies, $11.0 million from the sale of an investment in one portfolio company and $5.9 million from scheduled amortization across various portfolio companies.

Summary of Investment Activity for the Three Months Ended June 30, 2018:

During the three months ended June 30, 2018, the SCF made new investment commitments and fundings of $60.8 million and $54.9 million, respectively. The new investment commitments were across five new portfolio companies. The SCF had sales and repayments of $11.9 million, resulting in net funded portfolio change of $43.0 million during the quarter. As of June 30, 2018, the SCF’s investment portfolio at fair value was $490.5 million. The weighted average yield on the total investment portfolio at amortized cost was 7.6% which was unchanged from the previous quarter. 4 The SCF represents the Company’s largest investment at both cost and fair value.

PORTFOLIO SUMMARY 2

As of June 30, 2018, the Company’s investment portfolio had an aggregate fair value of $1,237.3 million, comprised of investments in 59 portfolio companies operating across 31 different industries. The investment portfolio on a fair value basis was comprised of 88.9% secured debt investments (52.8% in first lien debt (including 16.6% in first lien/last-out unitranche debt) and 36.1% in second lien debt), 0.5% in unsecured debt, 1.3% in preferred stock, 1.8% in common stock, and 7.5% in the SCF.

Summary of Investment Portfolio as of June 30, 2018:

As of June 30, 2018, the weighted average yield of the Company’s total debt and income producing investments at amortized cost and fair value was 11.5% and 12.1%, respectively, which was unchanged from the previous quarter. 4 The weighted average yield of the Company’s total investment portfolio at amortized cost and fair value was 10.9% and 11.7%, respectively, as compared to 11.1% and 11.7% respectively, as of March 31, 2018.

On a fair value basis, as of June 30, 2018, 96.1% of the Company’s debt investments bore interest at a floating rate. 5

As of June 30, 2018, the weighted average net debt/EBITDA of the companies in the Company’s investment portfolio was 5.2x versus 5.1x as of March 31, 2018. The weighted average interest coverage of companies comprising interest-bearing investments in the investment portfolio was 2.2x as compared to 2.3x in the prior quarter. The median EBITDA of the portfolio companies was $36.7 versus $39.7 million as of March 31, 2018. 6

As of June 30, 2018, investments on non-accrual status represented 0.7% and 0.8% of the total investment portfolio at fair value and amortized cost, respectively.

The Company’s investment in the SCF produced a return of 10.9% and 11.0%, at amortized cost and fair value, respectively, over the trailing four quarters ended June 30, 2018. The SCF’s investment portfolio had an aggregate fair value of $490.5 million, comprised of investments in 36 portfolio companies operating across 20 different industries. The SCF’s investment portfolio on a fair value basis was comprised of 100.0% secured debt investments (96.9% in first lien debt, and 3.1% in second lien debt). All of the investments in the SCF were debt investments bearing a floating interest rate.

As of June 30, 2018, the weighted average net debt/EBITDA and interest coverage of the companies in the SCF investment portfolio were 4.6x and 2.6x, respectively. The median EBITDA of the SCF’s portfolio companies was $49.8 million. As of June 30, 2018, the SCF had one investment on non-accrual status. 7

RESULTS OF OPERATIONS

Total investment income for the three months ended June 30, 2018 and March 31, 2018 was $37.2 million and $35.5 million, respectively. The increase in investment income over the quarter was primarily driven by higher interest income, including prepayment fees, and other income. The $37.2 million of total investment income was comprised of $34.6 million from interest income, original issue discount accretion, payment-in-kind and dividend income, $0.7 million from other income and $1.9 million from prepayment related income. 8

Total expenses before taxes for the three months ended June 30, 2018 and March 31, 2018 were $16.8 million and $16.5 million, respectively. The $0.3 million increase in expenses was primarily driven by an increase in interest and other debt expenses and other operating expenses which was partially offset by a decrease in investment advisory fees. The $16.8 million of total expenses were comprised of $6.2 million of interest and credit facility expenses, $8.8 million of management and incentive fees, and $1.8 million of other operating expenses.

Net investment income after taxes for the three months ended June 30, 2018 was $20.2 million, or $0.50 per share, compared with $18.7 million, or $0.47 per share per share for the three months ended March 31, 2018.

During the three months ended June 30, 2018, the Company had net realized and unrealized losses of $(2.7) million.

Net increase in net assets resulting from operations for the three months ended June 30, 2018 was $17.5 million, or $0.43 per share.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2018, the Company had $508.0 million of total principal amount of debt outstanding, comprised of $393.0 million of outstanding borrowings under its revolving credit facility and $115.0 million of convertible notes. The combined weighted average interest rate on debt outstanding was 3.97% for the six months ended June 30, 2018 as compared to 3.83% for the three months ended March 31, 2018. As of June 30, 2018, the Company had $302.0 million of availability under its revolving credit facility and $9.2 million in cash and cash equivalents.

The Company’s average and ending debt to equity leverage ratio was 0.72x and 0.70x, respectively, for the three months ended June 30, 2018, as compared with 0.72x and 0.73x, respectively, for the three months ended March 31, 2018. 9

CONFERENCE CALL

The Company will host an earnings conference call on Friday, August 3, 2018 at 9:00 am Eastern Time. All interested parties are invited to participate in the conference call by dialing (866) 884-8289; international callers should dial +1 (631) 485-4531; conference ID 1584433. All participants are asked to dial in approximately 10-15 minutes prior to the call, and reference “Goldman Sachs BDC, Inc.” when prompted. For a slide presentation that the Company may refer to on the earnings conference call, please visit the Investor Resources section of the Company’s website at www.goldmansachsbdc.com. The conference call will be webcast simultaneously on the Company’s website. An archived replay of the call will be available from approximately 12:00 pm Eastern Time on August 3 through September 3. To hear the replay, participants should dial (855) 859-2056; international callers should dial +1 (404) 537-3406; conference ID 1584433. An archived replay will also be available on the Company’s webcast link located on the Investor Resources section of the Company’s website. Please direct any questions regarding obtaining access to the conference call to Goldman Sachs BDC, Inc. Investor Relations, via e-mail, at gsbdc-investor-relations@gs.com.

ENDNOTES

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