Exhibit

Exhibit 99.1

FOR IMMEDIATE RELEASE:

Golub Capital BDC, Inc. Declares Fiscal Year 2020 Second Quarter Distribution of $0.33 Per Share and Announces Fiscal Year 2020 First Quarter Financial Results

NEW YORK, NY, February 10, 2020 - Golub Capital BDC, Inc., a business development company (Nasdaq: GBDC), today announced its financial results for its first fiscal quarter ended December 31, 2019.

Except where the context suggests otherwise, the terms "we," "us," "our," and "Company" refer to Golub Capital BDC, Inc. and its consolidated subsidiaries. "GC Advisors" refers to GC Advisors LLC, our investment adviser.



SELECTED FINANCIAL HIGHLIGHTS

(in thousands, expect per share data)
	December 31, 2019			September 30, 2019
Investment portfolio, at fair value	$	4,448,316		$	4,292,932
Total assets	$	4,597,469		$	4,394,863
Net asset value per share	$	16.66		$	16.76

	Quarter Ended
	December 31, 2019			September 30, 2019
Net investment income per share	$	0.24		$	0.37
Amortization of purchase premium per share	0.09			0.02
Accrual for (reversal of) capital gain incentive fee per share	—			(0.06		)
Adjusted net investment income per share¹	$	0.33		$	0.33

Net realized/unrealized gain (loss) per share	$	0.11		$	(1.39	)
Unrealized loss resulting from the write down of the purchase premium per share	$	—		$	1.43
Reversal of unrealized loss resulting from the amortization of the purchase premium per share	$	(0.09	)	$	(0.02	)
Adjusted net realized/unrealized gain (loss) per share¹	$	0.02		$	0.02

Earnings per share	$	0.35		$	(1.02	)
Adjusted earnings per share¹	$	0.35		$	0.35

Net asset value per share	$	16.66		$	16.76
Distributions paid per share²	$	0.46		$	0.32

On September 16, 2019, the Company completed its acquisition of Golub Capital Investment Corporation ("GCIC"). The merger was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification 805-50, Business Combinations — Related Issues. Under asset acquisition accounting, where the consideration paid to GCIC’s stockholders exceeded the relative fair values of the assets acquired, the premium paid by the Company was allocated to the cost of the GCIC assets acquired by the Company pro-rata based on their relative fair value. Immediately following the acquisition of GCIC, the Company recorded its assets at their respective fair values and, as a result, the purchase premium allocated to the cost basis of the GCIC assets acquired was immediately recognized as unrealized depreciation on the Company's Consolidated Statement of Operations. The purchase premium allocated to investments in loan securities acquired from GCIC will amortize over the life of the loans through interest income with a corresponding reversal of the unrealized depreciation on such loans acquired through their ultimate disposition. The purchase premium allocated to investments in equity securities will not amortize over the life of the equity securities through interest income and, assuming no subsequent change to the fair value of the GCIC equity securities acquired and disposition of such equity securities at fair value, the Company will recognize a realized loss with a corresponding reversal of the unrealized depreciation upon disposition of the GCIC equity securities acquired.

As a supplement to U.S. generally accepted accounting principles (“GAAP”) financial measures, the Company is providing the following non-GAAP financial measures that it believes are useful for the reasons described below:


•	“Adjusted Net Investment Income” and “Adjusted Net Investment Income Per Share” – excludes the amortization of the purchase premium and the accrual for the capital gain incentive fee required under GAAP (including the portion of such accrual that is not payable under the Company's investment advisory agreement) from net investment income calculated in accordance with GAAP.


•	“Adjusted Net Realized and Unrealized Gain/(Loss)” and “Adjusted Net Realized and Unrealized Gain/(Loss) Per Share” – excludes the unrealized loss resulting from the purchase premium write-down and the corresponding reversal of the unrealized loss from the amortization of the premium from the determination of realized and unrealized gain/(loss) in accordance with GAAP.


•	“Adjusted Net Income” and “Adjusted Earnings Per Share” – calculates net income and earnings per share based on Adjusted Net Investment Income and Adjusted Net Realized and Unrealized Gain/(Loss).

The Company believes that excluding the financial impact of the purchase premium write down in the above non-GAAP financial measures is useful for investors as it is a non-cash expense/loss resulting from the acquisition of GCIC and is one method the Company uses to measure its financial condition and results of operations. In addition, the Company believes excluding the accrual of the capital gain incentive fee in the above non-GAAP financial measures is useful as it includes the portion of such accrual that is not contractually payable under the terms of the Company’s investment advisory agreement with GC Advisors.

²Distributions paid per share during the three months ended December 31, 2019 includes a special distribution of $0.13 per share.

Exhibit 99.1

First Fiscal Quarter 2020 Highlights

•

Net investment income per share for the quarter ended December 31, 2019 was $0.24 as compared to $0.37 for the quarter ended September 30, 2019. Excluding $0.09 per share in purchase premium amortization from the GCIC acquisition, Adjusted Net Investment Income Per Share¹ for the quarter ended December 31, 2019 was $0.33. This compares to Adjusted Net Investment Income Per Share¹ of $0.33 for the quarter ended September 30, 2019 when excluding $0.02 per share in purchase premium amortization from the GCIC acquisition and a ($0.06) per share reversal in the accrual for the capital gain incentive fee.

•

Net realized and unrealized gain per share for the quarter ended December 31, 2019 was $0.11 that was comprised of (i) $0.02 per share of net realized and unrealized gain on investments and foreign currency and (ii) a $0.09 per share reversal of unrealized depreciation resulting from the amortization of the purchase premium. Adjusted Net Realized and Unrealized Gain Per Share¹ was $0.02 when excluding the $0.09 per share reversal of unrealized depreciation resulting from the amortization of purchase premium. This compares to net realized and unrealized loss per share of ($1.39) during the quarter ended September 30, 2019 that was comprised of (i) $0.02 per share of net realized and unrealized gain on investments and foreign currency, (ii) a ($1.43) per share loss of net unrealized depreciation resulting from the one-time write-down of the unamortized purchase premium allocated to the GCIC assets acquired and (iii) a $0.02 per share reversal of unrealized loss resulting from the amortization of the purchase premium. Adjusted Net Realized and Unrealized Gain Per Share¹ for the quarter ended September 30, 2019 was $0.02 when excluding the ($1.43) per share loss of net unrealized depreciation resulting from the write-down of the GCIC acquisition purchase premium and the $0.02 per share reversal of unrealized loss resulting from the amortization of purchase premium.

•

Earnings per share for the quarter ended December 31, 2019 was $0.35 as compared to a loss of ($1.02) per share for the quarter ended September 30, 2019. Adjusted Earnings Per Share¹ for each of the quarters ended December 31, 2019 and September 30, 2019 were $0.35, which is calculated as the sum of Adjusted Net Investment Income Per Share and Adjusted Net Realized and Unrealized Gain/(Loss) Per Share.

•

On December 30, 2019, we paid a quarterly distribution of $0.33 per share, an increase of $0.01 per share from before the GCIC acquisition. In addition, we also paid a special distribution of $0.13 per share, our fourth consecutive calendar year in which we have paid a special distribution. Primarily as a result of this special distribution, our net asset value per share declined to $16.66 as of December 31, 2019 from $16.76 as of September 30, 2019.


•	On February 4, 2020, our board of directors declared a quarterly distribution of $0.33 per share, which is payable on March 27, 2020 to stockholders of record as of March 6, 2020.

Portfolio and Investment Activities

As of December 31, 2019, the Company had investments in 250 portfolio companies with a total fair value of $4,329.2 million and had investments in Senior Loan Fund LLC ("SLF") and GCIC SLF LLC ("GCIC SLF") with a total aggregate fair value of $119.1 million. This compares to the Company’s portfolio as of September 30, 2019, as of which date the Company had investments in 241 portfolio companies with a total fair value of $4,169.3 million and investments in SLF and GCIC SLF with a total fair value of $123.6 million. Investments in portfolio companies as of December 31, 2019 and September 30, 2019 consisted of the following:



	As of December 31, 2019				As of September 30, 2019
	Investments		Percentage of		Investments		Percentage of
Investment	at Fair Value		Total		at Fair Value		Total
Type	(In thousands)		Investments		(In thousands)		Investments
Senior secured	$	545,176	12.2	%	$	589,340	13.7	%
One stop	3,676,789		82.7	%	3,474,116		80.9
Junior debt^*	20,291		0.4	%	19,842		0.5
LLC equity interests in SLF and GCIC SLF	119,078		2.7	%	123,644		2.9
Equity	86,982		2.0	%	85,990		2.0
Total	$	4,448,316	100.0	%	$	4,292,932	100.0	%



^*	Junior debt is comprised of subordinated debt and second lien loans.

Exhibit 99.1

The following table shows the asset mix of our new investment commitments for the three months ended December 31, 2019:



	For the three months ended December 31, 2019
	New Investment
	Commitments		Percentage of
	(In thousands)		Commitments

Senior secured	$	11,610	4.3	%
One stop	257,329		94.9
Junior debt^*	138		0.1
Equity	2,015		0.7
Total new investment commitments	$	271,092	100.0	%



^*	Junior debt is comprised of subordinated debt and second lien loans.

Total investments in portfolio companies at fair value were $4,448.3 million at December 31, 2019. As of December 31, 2019, total assets were $4,597.5 million, net assets were $2,229.1 million and net asset value per share was $16.66.

Consolidated Results of Operations

For the first fiscal quarter of 2020, the Company reported GAAP net income of $47.0 million or $0.35 per share and Adjusted Net Income¹ of $47.0 million or $0.35 per share. GAAP net investment income was $32.7 million or $0.24 per share and Adjusted Net Investment Income¹ was $44.5 million or $0.33 per share. GAAP net realized and unrealized gains¹ was $14.3 million or $0.11 per share and Adjusted Realized and Unrealized Gains was $2.5 million or $0.02 per share.

Net income can vary substantially from period to period due to various factors, including the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation and as a result of the acquisition of GCIC. As a result, quarterly comparisons of net income may not be meaningful.

Liquidity and Capital Resources

The Company’s liquidity and capital resources are derived from the Company’s debt securitizations (also known as collateralized loan obligations, or CLOs), U.S. Small Business Administration (“SBA”) debentures, revolving credit facilities and cash flow from operations. The Company’s primary uses of funds from operations include investments in portfolio companies and payment of fees and other expenses that the Company incurs. The Company has used, and expects to continue to use, its debt securitizations, SBA debentures, revolving credit facilities, proceeds from its investment portfolio and proceeds from offerings of its securities and its dividend reinvestment plan to finance its investment objectives.

As of December 31, 2019, the Company had cash, cash equivalents and foreign currencies of $19.4 million, restricted cash, cash equivalents and foreign currencies of $113.8 million and $2,264.8 million of debt outstanding. As of December 31, 2019, subject to leverage and borrowing base restrictions, we had approximately $159.4 million of remaining commitments and $26.5 million of availability, in the aggregate, on our revolving credit facilities with various banks.

Portfolio and Asset Quality

GC Advisors regularly assesses the risk profile of each of the Company’s investments and rates each of them based on an internal system developed by Golub Capital and its affiliates. This system is not generally accepted in our industry or used by

Exhibit 99.1

our competitors. It is based on the following categories, which we refer to as GC Advisors’ internal performance ratings:




Internal Performance Ratings
Rating		Definition
5		Involves the least amount of risk in our portfolio. The borrower is performing above expectations, and the trends and risk factors are generally favorable.
4		Involves an acceptable level of risk that is similar to the risk at the time of origination. The borrower is generally performing as expected, and the risk factors are neutral to favorable.
3		Involves a borrower performing below expectations and indicates that the loan’s risk has increased somewhat since origination. The borrower may be out of compliance with debt covenants; however, loan payments are generally not past due.
2		Involves a borrower performing materially below expectations and indicates that the loan’s risk has increased materially since origination. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due (but generally not more than 180 days past due).
1		Involves a borrower performing substantially below expectations and indicates that the loan’s risk has substantially increased since origination. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Loans rated 1 are not anticipated to be repaid in full and we will reduce the fair market value of the loan to the amount we anticipate will be recovered.

Our internal performance ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments.

The following table shows the distribution of the Company’s investments on the 1 to 5 internal performance rating scale at fair value as of December 31, 2019 and September 30, 2019:



	December 31, 2019				September 30, 2019
Internal	Investments		Percentage of		Investments		Percentage of
Performance	at Fair Value		Total		at Fair Value		Total
Rating	(In thousands)		Investments		(In thousands)		Investments
5	$	176,411	4.0	%	$	115,318	2.7	%
4	3,861,016		86.8		3,787,809		88.2
3	322,177		7.2		337,358		7.9
2	88,676		2.0		52,434		1.2
1	36		0.0	*	13		0.0*
Total	$	4,448,316	100.0	%	$	4,292,932	100.0	%



*	Represents an amount less than 0.1%.


¹	See footnote 1 to 'Selected Financial Highlights' above.

Exhibit 99.1

Conference Call

The Company will host an earnings conference call at 10:30 a.m. (Eastern Time) on Tuesday, February 11, 2020 to discuss the quarterly financial results. All interested parties may participate in the conference call by dialing (800) 698-0339 approximately 10-15 minutes prior to the call; international callers should dial (312) 281-2958. Participants should reference Golub Capital BDC, Inc. when prompted. For a slide presentation that we intend to refer to on the earnings conference call, please visit the Investor Resources link on the homepage of our website (www.golubcapitalbdc.com) and click on the Quarter Ended 12.31.19 Investor Presentation under Events/Presentations. An archived replay of the call will be available shortly after the call until 12:30 p.m. (Eastern Time) on March 12, 2020. To hear the replay, please dial (800) 633-8284. International dialers, please dial (402) 977-9140. For all replays, please reference program ID number 21950992.

Exhibit 99.1



Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(In thousands, except share and per share data)
	December 31, 2019			September 30, 2019
Assets	(unaudited)			(audited)
Investments, at fair value (cost of $4,530,938 and $4,391,770, respectively)	$	4,448,316		$	4,292,932
Cash and cash equivalents	18,914			6,463
Unrestricted foreign currencies (cost of $512 and $54, respectively)	512			54
Restricted cash and cash equivalents	112,353			76,370
Restricted foreign currencies (cost of $1,444 and $1,321, respectively)	1,444			1,321
Interest receivable	14,507			16,790
Other assets	1,423			933
Total Assets	$	4,597,469		$	4,394,863

Liabilities
Debt	$	2,264,823		$	2,124,392
Less unamortized debt issuance costs	5,430			4,939
Debt less unamortized debt issuance costs	2,259,393			2,119,453
Other short-term borrowings (proceeds of $0 and $3,605, respectively)	65,833			—
Unrealized depreciation on forward currency contracts	1,365			115
Interest payable	17,324			13,380
Management and incentive fees payable	20,896			12,884
Accounts payable and accrued expenses	3,561			25,970
Accrued trustee fees	15			207
Total Liabilities	2,368,387			2,172,009

Net Assets
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2019 and September 30, 2019.	—			—
Common stock, par value $0.001 per share, 200,000,000 shares authorized, 133,805,764 issued and outstanding as of December 31, 2019; 200,000,000 shares authorized, 132,658,200 issued and outstanding as of September 30, 2019.	134			133
Paid in capital in excess of par	2,330,806			2,310,610
Distributable earnings	(101,858		)	(87,889		)
Total Net Assets	2,229,082			2,222,854
Total Liabilities and Total Net Assets	$	4,597,469		$	4,394,863

Number of common shares outstanding	133,805,764			132,658,200
Net asset value per common share	$	16.66		$	16.76

Exhibit 99.1



Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except share and per share data)
	Three months ended
	December 31, 2019				September 30, 2019
	(unaudited)				(unaudited)
Investment income
Interest income	$	88,290			$	48,788
GCIC acquisition purchase price premium amortization	(11,837		)		(1,381		)
Dividend income	1,939				1,451
Fee income	215				119
Total investment income	78,607				48,977

Expenses
Interest and other debt financing expenses	22,278				12,262
Base management fee	15,206				8,164
Incentive fee	5,904				324
Professional fees	939				655
Administrative service fee	1,402				639
General and administrative expenses	147				140
Total expenses	45,876				22,184
Net investment income	32,731				26,793

Net gain (loss) on investment transactions
Net realized gain (loss) from:
Investments	2,656				(99		)
Foreign currency transactions	(155		)		195
Net realized gain (loss) in investment transactions	2,501				96
Net change in unrealized appreciation (depreciation) from:
Investments	16,216				(101,816		)
Translation of assets and liabilities in foreign currencies	(3,150		)		788
Forward currency contracts	(1,250		)		133
Net change in unrealized appreciation (depreciation) on investment transactions	11,816			—	(100,895		)
Net gain (loss) on investments	14,317				(100,799		)

Net increase in net assets resulting from operations	$	47,048			$	(74,006	)

Per Common Share Data
Basic and diluted earnings per common share	$	0.35			$	(1.02	)
Dividends and distributions declared per common share	$	0.46			$	0.32
Basic and diluted weighted average common shares outstanding	132,683,147				72,426,221

Exhibit 99.1

ABOUT GOLUB CAPITAL BDC, INC.

Golub Capital BDC, Inc. (“Golub Capital BDC”) is an externally-managed, non-diversified closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Golub Capital BDC invests primarily in one-stop and other senior secured loans of U.S. middle-market companies that are often sponsored by private equity investors. Golub Capital BDC’s investment activities are managed by its investment adviser, GC Advisors LLC, an affiliate of the Golub Capital group of companies (“Golub Capital”).

ABOUT GOLUB CAPITAL

Golub Capital is a market-leading, award-winning direct lender and credit asset manager, with over $30 billion of capital under management. Golub Capital specializes in delivering reliable, creative and compelling financing solutions to U.S. middle market companies backed by private equity sponsors. The firm’s credit expertise also forms the foundation of its Late Stage Lending business and its Broadly Syndicated Loan investment program. Across its activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from its private equity sponsor clients and investors. Founded over 25 years ago, Golub Capital today has over 450 employees and lending offices in Chicago, New York and San Francisco. For more information, please visit golubcapital.com.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release 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 expressed or implied in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. Golub Capital BDC, Inc. undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contact:

Ross Teune

312-284-0111

rteune@golubcapital.com

Source: Golub Capital BDC, Inc.