Golub Capital BDC Completes $2.2 Billion Debt Securitization and Increases Credit Facility with JPMorgan Chase

Golub Capital BDC, Inc. (NASDAQ: GBDC) recently announced the successful completion of a $2,200,500,000 term debt securitization, known as the 2024 Debt Securitization, by Golub Capital BDC CLO 8 LLC, an indirect subsidiary of the Company. The transaction, which closed on November 18, 2024, involved the issuance of various notes, including the Senior Secured Floating Rate Notes due 2036 and Subordinated Notes due 2124. These notes, collectively referred to as the 2024 Notes, form part of the collateralized loan obligations secured by a diversified portfolio of senior secured and second lien loans.

In connection with the 2024 Debt Securitization, Golub Capital BDC CLO 8 LLC entered into a Note Purchase Agreement with Deutsche Bank Securities Inc., outlining the purchase of certain notes issued as part of the securitization. The Company plans to use the proceeds from this securitization to fully redeem previous debt facilities, including the 2018 Debt Securitization, GCIC 2018 Debt Securitization, and the GBDC 3 Term Debt Securitization, among other purposes.

Moreover, the Company also recently finalized an agreement to increase the aggregate commitments under its Senior Secured Revolving Credit Facility with JPMorgan Chase Bank, N.A. The commitments have been raised from $1,822.5 million to $1,897.5 million through the accordion feature in the existing agreement, which allows a potential size increase up to $2.0 billion.

The details of the 2024 Debt Securitization and JPMorgan facility increase are outlined in the recent Form 8-K filing submitted to the Securities and Exchange Commission (SEC) by the Company. The report includes extensive documentation related to the transactions, such as the Note Purchase Agreement, Collateral Management Agreement, and the Master Loan Sale Agreement, among others.

Golub Capital BDC’s strategic financial moves exemplify its commitment to managing its capital structure efficiently and optimizing its funding sources to support ongoing operations and growth initiatives, positioning the Company for continued success in the competitive financial landscape.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Golub Capital BDC’s 8K filing here.

About Golub Capital BDC

Golub Capital BDC, Inc (GBDC) is a business development company and operates as an externally managed closed-end non-diversified management investment company. It invests in debt and minority equity investments in middle-market companies that are, in most cases, sponsored by private equity investors.