10-Q 1 gbdcfy2020q310-q.htm 10-Q Document

______________________________________________________________________________________________________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
______________________________________________________________________________________________________ 
FORM 10-Q

þ                 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2020

OR

o         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)
Delaware27-2326940
(State or other jurisdiction of incorporation or organization)  (I.R.S. Employer Identification No.)
200 Park Avenue, 25th Floor
New York, NY 10166
(Address of principal executive offices)

(212) 750-6060
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.001 per shareGBDC The Nasdaq Global Select Market

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 o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).   Yes o No   o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  þ
Accelerated filer o
Non-accelerated filer  o
Smaller reporting company o
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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

As of August 7, 2020, the Registrant had 167,259,511 shares of common stock, $0.001 par value, outstanding.



Part I. Financial Information  
Item 1. Financial Statements
Consolidated Statements of Financial Condition as of June 30, 2020 (unaudited) and September 30, 2019
Consolidated Statements of Operations for the three and nine months ended June 30, 2020 (unaudited) and 2019 (unaudited)
Consolidated Statements of Changes in Net Assets for the three and nine months ended June 30, 2020 (unaudited) and 2019 (unaudited)
Consolidated Statements of Cash Flows for the nine months ended June 30, 2020 (unaudited) and 2019 (unaudited)
Consolidated Schedules of Investments as of June 30, 2020 (unaudited) and September 30, 2019
Notes to Consolidated Financial Statements (unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures about Market Risk
Item 4.Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A.Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6.Exhibits

2
TABLE OF CONTENTS
Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(In thousands, except share and per share data)

June 30, 2020September 30, 2019
(unaudited)
Assets    
Investments, at fair value    
Non-controlled/non-affiliate company investments$4,208,935  $4,156,713  
Non-controlled affiliate company investments24,783  12,575  
Controlled affiliate company investments16,652  123,644  
Total investments, at fair value (amortized cost of $4,474,722 and $4,391,770, respectively)4,250,370  4,292,932  
Cash and cash equivalents29,266  6,463  
Foreign currencies (cost of $1,180 and $54, respectively)1,173  54  
Restricted cash and cash equivalents
87,584  76,370  
Restricted foreign currencies (cost of $2,065 and $1,321, respectively)2,070  1,321  
Cash collateral held at broker for forward currency contracts 1,700  600  
Interest receivable18,589  16,790  
Unrealized appreciation on forward currency contracts720  —  
Other assets248  333  
Total Assets$4,391,720  $4,394,863  
Liabilities    
Debt$2,008,572  $2,124,392  
Less unamortized debt issuance costs4,597  4,939  
Debt less unamortized debt issuance costs2,003,975  2,119,453  
Unrealized depreciation on forward currency contracts —  115  
Interest payable11,936  13,380  
Management and incentive fees payable17,518  12,884  
Accounts payable and other liabilities4,383  25,970  
Payable for investments purchased3,855  —  
Accrued trustee fees—  207  
Total Liabilities2,041,667  2,172,009  
Commitments and Contingencies (Note 8)    
Net Assets    
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of June 30, 2020 and September 30, 2019—  —  
Common stock, par value $0.001 per share, 200,000,000 shares authorized, 167,259,511 and 132,658,200 shares issued and outstanding as of June 30, 2020 and September 30, 2019, respectively167  133  
Paid in capital in excess of par2,631,233  2,310,610  
Distributable earnings (losses)
(281,347) (87,889) 
Total Net Assets2,350,053  2,222,854  
Total Liabilities and Total Net Assets$4,391,720  $4,394,863  
Number of common shares outstanding167,259,511  132,658,200  
Net asset value per common share$14.05  $16.76  

See Notes to Consolidated Financial Statements.
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TABLE OF CONTENTS
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,
  2020201920202019
Investment income    
From non-controlled/non-affiliate company investments:    
Interest income$72,500  $41,329  $222,952  $121,481  
Dividend income—  59  180  117  
Fee income668  524  1,040  1,171  
Total investment income from non-controlled/non-affiliate company investments73,168  41,912  224,172  122,769  
From non-controlled affiliate company investments:    
Interest income449  193  921  552  
Total investment income from non-controlled affiliate company investments449  193  921  552  
From controlled affiliate company investments:    
Interest income(407) —  (57) —  
Dividend income—  —  1,905  —  
Total investment income from controlled affiliate company investments(407) —  1,848  —  
Total investment income73,210  42,105  226,941  123,321  
Expenses    
Interest and other debt financing expenses17,516  10,849  61,344  31,269  
Base management fee14,437  6,675  44,501  19,708  
Incentive fee3,081  3,529  12,832  8,578  
Professional fees1,324  727  3,308  1,981  
Administrative service fee1,613  681  4,461  2,043  
General and administrative expenses171  238  750  463  
Total expenses38,142  22,699  127,196  64,042  
Net investment income35,068  19,406  99,745  59,279  
Net gain (loss) on investment transactions     
Net realized gain (loss) from:    
Non-controlled/non-affiliate company investments(4,925) (717) (2,034) (4,517) 
Non-controlled affiliate company investments—  —  (8,038) —  
Controlled affiliate company investments—  —  (4,036) —  
Foreign currency transactions1  17  15  (22) 
Net realized gain (loss) on investment transactions (4,924) (700) (14,093) (4,539) 
Net change in unrealized appreciation (depreciation) from:
    
Non-controlled/non-affiliate company investments117,431  1,036  (123,345) 237  
Non-controlled affiliate company investments(3,166) (350) (3,044) (629) 
Controlled affiliate company investments(833) —  875  1,183  
Translation of assets and liabilities in foreign currencies(1,222) (192) (746) (104) 
Forward currency contracts (211) —  835  —  
Net change in unrealized appreciation (depreciation) on investment transactions
111,999  494  (125,425) 687  
Net gain (loss) on investment transactions 107,075  (206) (139,518) (3,852) 
Net increase (decrease) in net assets resulting from operations$142,143  $19,200  $(39,773) $55,427  
Per Common Share Data    
Basic and diluted earnings (loss) per common share (Note 10)$0.93  $0.31  $(0.28) $0.89  
Dividends and distributions declared per common share$0.29  $0.32  $1.08  $1.08  
Basic and diluted weighted average common shares outstanding (Note 10)153,184,678  62,558,079  142,753,605  62,358,520  

See Notes to Consolidated Financial Statements.
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Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Changes in Net Assets (unaudited)
(In thousands, except share data)

Common StockPaid in Capital in Excess of ParDistributable Earnings (Losses)Total Net Assets
SharesPar Amount
Balance at September 30, 201860,165,454  $60  $949,547  $19,247  $968,854  
Net increase in net assets resulting from operations:
Net investment income—  —  —  59,279  59,279  
Net realized gain (loss) on investment transactions —  —  —  (4,539) (4,539) 
Net change in unrealized appreciation (depreciation) on investment transactions —  —  —  687  687  
Distributions to stockholders:      
Stock issued in connection with dividend reinvestment plan550,454  1  9,134  —  9,135  
Distributions from distributable earnings (losses)—  —  —  (65,196) (65,196) 
Total increase (decrease) for the nine months ended June 30, 2019550,454  1  9,134  (9,769) (634) 
Balance at June 30, 201960,715,908  $61  $958,681  $9,478  $968,220  
Balance at March 31, 201960,587,403  $61  $956,508  $9,666  $966,235  
Net increase in net assets resulting from operations:
Net investment income—  —  —  19,406  19,406  
Net realized gain (loss) on investment transactions—  —  —  (700) (700) 
Net change in unrealized appreciation (depreciation) on investment transactions—  —  —  494  494  
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan128,505  —  2,173  —  2,173  
Distributions from distributable earnings (losses)—  —  —  (19,388) (19,388) 
Total increase (decrease) for the three months ended June 30, 2019128,505  —  2,173  (188) 1,985  
Balance at June 30, 201960,715,908  $61  $958,681  $9,478  $968,220  
Balance at September 30, 2019132,658,200  $133  $2,310,610  $(87,889) $2,222,854  
Issuance of common stock, net of offering and underwriting costs33,451,902  33  300,394  —  300,427  
Net increase (decrease) in net assets resulting from operations:
Net investment income—  —  —  99,745  99,745  
Net realized gain (loss) on investment transactions —  —  —  (14,093) (14,093) 
Net change in unrealized appreciation (depreciation) on investment transactions —  —  —  (125,425) (125,425) 
Distributions to stockholders:  
Stock issued in connection with dividend reinvestment plan1,149,409  1  20,229  —  20,230  
Distributions from distributable earnings (losses)—  —  —  (153,685) (153,685) 
Total increase (decrease) for the nine months ended June 30, 202034,601,311  34  320,623  (193,458) 127,199  
Balance at June 30, 2020167,259,511  $167  $2,631,233  $(281,347) $2,350,053  
Balance at March 31, 2020133,807,609  $134  $2,330,839  $(374,985) $1,955,988  
Issuance of common stock, net of offering and underwriting costs33,451,902  33  300,394  —  300,427  
Net increase (decrease) in net assets resulting from operations:
Net investment income—  —  —  35,068  35,068  
Net realized gain (loss) on investment transactions—  —  —  (4,924) (4,924) 
Net change in unrealized appreciation (depreciation) on investment transactions—  —  —  111,999  111,999  
Distributions to stockholders:  
Distributions from distributable earnings (losses)—  —  —  (48,505) (48,505) 
Total increase (decrease) for the three months ended June 30, 202033,451,902  33  300,394  93,638  394,065  
Balance at June 30, 2020167,259,511  $167  $2,631,233  $(281,347) $2,350,053  


See Notes to Consolidated Financial Statements.
5
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Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(In thousands)

Nine months ended June 30,
  20202019
Cash flows from operating activities    
Net increase (decrease) in net assets resulting from operations$(39,773) $55,427  
Adjustments to reconcile net increase (decrease) in net assets resulting from operations
to net cash (used in) provided by operating activities:
Amortization of deferred debt issuance costs2,843  1,597  
Accretion of discounts and amortization of premiums on investments19,429  (6,624) 
Accretion of discounts on issued debt securities903  —  
Net realized (gain) loss on investments14,108  4,517  
Net realized (gain) loss on foreign currency and other transactions(15) 22  
Net change in unrealized (appreciation) depreciation on investments125,514  (791) 
Net change in unrealized (appreciation) depreciation on translation of assets and liabilities in foreign currencies746  104  
Net change in unrealized (appreciation) depreciation on forward currency contracts (835) —  
Proceeds from (fundings of) revolving loans, net(20,385) (2,264) 
Fundings of investments(530,197) (456,502) 
Proceeds from principal payments and sales of portfolio investments533,598  323,495  
PIK interest(7,513) (1,811) 
Purchase of SLF and GCIC SLF minority interests, net of cash acquired (Note 1)(1)
4,944  —  
Changes in operating assets and liabilities:
Interest receivable(1,329) 16  
Cash collateral held at broker for forward currency contracts(1,100) —  
Other assets104  (1,185) 
Interest payable(1,700) 5,345  
Management and incentive fees payable4,634  (3,108) 
Payable for investments purchased3,855  366  
Accounts payable and other liabilities(22,075) 981  
Accrued trustee fees(207) 40  
Net cash (used in) provided by operating activities85,549  (80,375) 
Cash flows from financing activities    
Borrowings on debt747,404  1,200,436  
Repayments of debt(961,556) (999,185) 
Capitalized debt issuance costs(2,501) (3,443) 
Proceeds from other short-term borrowings64,769  29,437  
Repayments on other short-term borrowings(65,017) (25,759) 
Net proceeds from issuance of common stock (Note 11)300,427  —  
Distributions paid(102,767) (56,061) 
Purchases of common stock under reinvestment plan (30,688) —  
Net cash provided by (used in) financing activities(49,929) 145,425  
Net change in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies
35,620  65,050  
Effect of foreign currency exchange rates265  (101) 
Cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies, beginning of period
84,208  45,705  
Cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies, end of period
$120,093  $110,654  
See Notes to Consolidated Financial Statements.
6

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited) - (continued)
(In thousands)

Nine months ended June 30,
  20202019
Supplemental disclosure of cash flow information:    
Cash paid during the period for interest$58,658  $24,327  
Distributions declared during the period153,685  65,196  
Supplemental disclosure of non-cash operating and financing activities:
Stock issued in connection with dividend reinvestment plan$20,230  $9,135  
Noncash assets acquired in consolidation of SLF and GCIC SLF (Note 1)185,101  —  
Noncash liabilities assumed in consolidation of SLF and GCIC SLF (Note 1) (85,236) —  
Dissolution of existing SLF and GCIC SLF LLC equity interests(119,077) —  
(1)Represents $17,011 paid in cash to RGA and Aurora (as defined in Note 1), net of cash acquired due to the consolidation of SLF and GCIC SLF of $21,955.


The following table provides a reconciliation of cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies reported within the Consolidated Statements of Financial Condition that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows:
As of June 30,
20202019
Cash and cash equivalents$29,266  $8,158  
Foreign currencies (cost of $1,180 and $124, respectively)1,173  124  
Restricted cash and cash equivalents 87,584  101,541  
Restricted foreign currencies (cost of $2,065 and $827, respectively)2,070  831  
Total cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies shown in the Consolidated Statements of Cash Flows
$120,093  $110,654  
See Note 2. Significant Accounting Policies and Recent Accounting Updates for a description of cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies.


See Notes to Consolidated Financial Statements.
7
TABLE OF CONTENTS
Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited)
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Investments                 
Non-controlled/non-affiliate company investments               
Debt investments                 
Aerospace and Defense                 
NTS Technical Systems^*#+~
One stop L + 6.00%
(c)
 7.43% 06/2021 $25,396  $25,372  1.1  %$25,397  
NTS Technical Systems+~
One stop L + 6.00%
(c)
 7.43% 06/2021 4,155  4,150  0.2  4,155  
NTS Technical Systems
One stop L + 6.00%
(c)
 7.43% 06/2021 1,996  1,973  0.1  1,996  
Tronair Parent, Inc.^+
Senior loan L + 4.75%
(c)
 5.75% 09/2023 720  713  —  626  
Tronair Parent, Inc.
Senior loan L + 4.50%
(c)(f)
 4.44% 09/2021 160  159  —  136  
Whitcraft LLC^*#+~
One stop L + 6.00%
(c)
 7.00% 04/2023 64,057  64,487  2.5  58,933  
Whitcraft LLC
One stop L + 6.00%
(c)(f)
 7.00% 04/2023 120  118  —  96  
96,604  96,972  3.9  91,339  
Automobile
Grease Monkey International, LLC^*#+
Senior loan L + 5.00%
(c)
 6.00% 11/2022 8,694  8,764  0.4  8,694  
Grease Monkey International, LLC!~
Senior loan L + 5.00%
(c)
 6.00% 11/2022 2,376  2,451  0.1  2,376  
Grease Monkey International, LLC#~
Senior loan L + 5.00%
(c)
 6.00% 11/2022 1,206  1,245  0.1  1,206  
Grease Monkey International, LLC+~
Senior loan L + 5.00%
(c)
 6.00% 11/2022 1,091  1,126  —  1,091  
Grease Monkey International, LLC
Senior loan L + 5.00%
(c)
 6.00% 11/2022 997  1,000  —  997  
Grease Monkey International, LLC
Senior loan L + 5.00%
(c)
 6.24% 11/2022 82  84  —  82  
Grease Monkey International, LLC
Senior loan L + 5.00% 
N/A(6)
 11/2022 —  —  —  —  
JHCC Holdings LLC
One stop L + 5.50%
(c)
 6.81% 09/2025 15,670  15,399  0.7  15,356  
JHCC Holdings LLC
One stop L + 5.50%
(c)
 6.64% 09/2025 79  76  —  73  
JHCC Holdings LLC
One stop L + 5.50%
(c)
 6.35% 09/2025 16  15  —  14  
Polk Acquisition Corp.*#
Senior loan L + 6.50%
(a)
 3.50% cash/4.00% PIK 12/2023 17,860  17,648  0.7  16,430  
Polk Acquisition Corp.
Senior loan L + 6.50%
(a)
 3.50% cash/4.00% PIK 12/2023 106  102  —  96  
Polk Acquisition Corp.
Senior loan L + 6.50%
(a)
 3.50% cash/4.00% PIK 12/2023 100  96  —  82  
Power Stop, LLC+~
Senior loan L + 4.75%
(a)
 4.93% 10/2025 2,849  2,905  0.1  2,708  
Quick Quack Car Wash Holdings, LLC*#
One stop L + 6.50%
(d)
 7.50% 04/2023 13,117  13,218  0.6  13,117  
Quick Quack Car Wash Holdings, LLC#
One stop L + 6.50%
(c)(d)
 7.50% 04/2023 2,367  2,348  0.1  2,367  
Quick Quack Car Wash Holdings, LLC*+
One stop L + 6.50%
(d)
 7.50% 04/2023 2,067  2,135  0.1  2,067  
Quick Quack Car Wash Holdings, LLC*+
One stop L + 6.50%
(d)
 7.50% 04/2023 1,381  1,427  0.1  1,382  
Quick Quack Car Wash Holdings, LLC*
One stop L + 6.50%
(d)
 7.50% 04/2023 1,122  1,182  —  1,122  
Quick Quack Car Wash Holdings, LLC
One stop L + 6.50%
(d)
 7.50% 04/2023 80  81  —  80  
71,260  71,302  3.0  69,340  
Beverage, Food and Tobacco
Abita Brewing Co., L.L.C.+(7)
One stop L + 7.25%
(c)
 8.25% 04/2021 9,983  10,015  0.4  8,485  
Abita Brewing Co., L.L.C.(7)
One stop L + 7.25%
(c)
 8.33% 04/2021 40  40  —  34  
BJH Holdings III Corp.+~
One stop L + 5.75%
(c)
 6.75% 08/2025 46,052  47,453  2.0  46,052  
BJH Holdings III Corp.
One stop L + 5.75%
(c)
 6.75% 08/2025 200  193  —  200  
Cafe Rio Holding, Inc.^#
One stop L + 5.75%
(c)
 6.82% 09/2023 18,658  18,872  0.8  17,911  
Cafe Rio Holding, Inc.#
One stop L + 5.75%
(d)
 6.82% 09/2023 2,253  2,331  0.1  2,163  
Cafe Rio Holding, Inc.
One stop L + 5.75%
(c)(d)
 6.79% 09/2023 2,002  2,000  0.1  1,922  
Cafe Rio Holding, Inc.*#
One stop L + 5.75%
(d)
 6.82% 09/2023 1,430  1,480  0.1  1,373  
See Notes to Consolidated Financial Statements.
8

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Beverage, Food and Tobacco - (continued)
Cafe Rio Holding, Inc.#
One stop L + 5.75%
(d)
 6.82% 09/2023 $1,263  $1,306  0.1  %$1,212  
Cafe Rio Holding, Inc.
One stop L + 5.75%
(d)
 6.82% 09/2023 181  181  —  175  
Cafe Rio Holding, Inc.(5)
One stop L + 5.75% 
N/A(6)
 09/2023 —  —  —  (10) 
Fintech Midco, LLC*#!
One stop L + 5.00%
(d)
 6.08% 08/2024 24,474  24,841  1.0  23,496  
Fintech Midco, LLC#
One stop L + 5.00%
(d)
 6.08% 08/2024 1,133  1,173  0.1  1,088  
Fintech Midco, LLC(5)
One stop L + 5.00% 
N/A(6)
 08/2024 —  (1) —  (8) 
Flavor Producers, LLC#~
Senior loan L + 4.75%
(c)
 5.75% 12/2023 4,994  4,877  0.2  4,594  
Flavor Producers, LLC
Senior loan L + 4.75%
(d)
 5.81% 12/2022 16  10  —  12  
FWR Holding Corporation^#
One stop L + 5.50%
(c)
 6.50% 08/2023 10,394  10,374  0.4  9,564  
FWR Holding Corporation#
One stop L + 5.50%
(c)
 6.50% 08/2023 1,818  1,881  0.1  1,672  
FWR Holding Corporation#
One stop L + 5.50%
(c)
 6.50% 08/2023 1,149  1,189  0.1  1,057  
FWR Holding Corporation#
One stop L + 5.50%
(c)
 6.50% 08/2023 364  374  —  335  
FWR Holding Corporation
One stop L + 5.50%
(c)
 6.50% 08/2023 274  273  —  252  
FWR Holding Corporation#
One stop L + 5.50%
(c)
 6.50% 08/2023 272  280  —  250  
FWR Holding Corporation
One stop L + 5.50%
(c)(d)
 6.50% 08/2023 131  130  —  121  
FWR Holding Corporation
One stop L + 5.50%
(c)(f)
 7.10% 08/2023 70  69  —  60  
FWR Holding Corporation
One stop L + 5.50% 
N/A(6)
 08/2023 —  —  —  —  
Global ID Corporation*#+~
One stop L + 6.50%
(c)
 7.57% 11/2021 14,287  14,418  0.6  14,287  
Global ID Corporation*#
One stop L + 6.50%
(c)
 7.57% 11/2021 815  836  —  815  
Global ID Corporation#One stop L + 6.50%
(c)
 7.57% 11/2021 712  731  —  712  
Global ID Corporation#One stop L + 6.50%
(c)
 7.57% 11/2021 489  502  —  489  
Global ID Corporation
One stop L + 6.50%
(c)
 7.50% 11/2021 60  60  —  60  
Mendocino Farms, LLC
One stop L + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 806  832  —  806  
Mendocino Farms, LLC
One stop L + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 634  654  —  634  
Mendocino Farms, LLC
One stop L + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 622  619  —  622  
Mendocino Farms, LLC
One stop L + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 307  305  —  307  
Mendocino Farms, LLC
One stop L + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 306  304  —  306  
Mendocino Farms, LLC
One stop L + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 150  150  —  150  
Mendocino Farms, LLC
One stop L + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 92  91  —  92  
Mendocino Farms, LLC(5)
One stop L + 8.50% 
N/A(6)
 06/2023 —  (2) —  —  
Mid-America Pet Food, L.L.C.^*#
One stop L + 5.50%
(b)
 6.50% 12/2021 22,176  22,495  1.0  22,176  
Mid-America Pet Food, L.L.C.
One stop L + 5.50%
(c)
 6.93% 12/2021 76  75  —  76  
NBC Intermediate, LLC^
Senior loan L + 4.25%
(d)
 5.33% 09/2023 4,589  4,578  0.2  4,498  
NBC Intermediate, LLC#
Senior loan L + 4.25%
(a)(d)
 5.29% 09/2023 2,347  2,377  0.1  2,300  
NBC Intermediate, LLC*#
Senior loan L + 4.25%
(d)
 5.33% 09/2023 2,309  2,339  0.1  2,262  
NBC Intermediate, LLC#
Senior loan L + 4.25%
(d)
 5.33% 09/2023 667  661  —  653  
NBC Intermediate, LLC
Senior loan L + 4.25% 
N/A(6)
 09/2023 —  —  —  —  
Purfoods, LLC#
One stop L + 5.50%
(a)
 6.50% 05/2021 16,066  16,216  0.7  16,066  
Purfoods, LLC*
One stop L + 5.50%
(a)
 6.50% 05/2021 538  550  —  538  
Purfoods, LLC^*
One stop L + 5.50%
(a)
 6.50% 05/2021 389  397  —  389  
Purfoods, LLC*~
One stop L + 5.50%
(a)
 6.50% 05/2021 293  299  —  293  
Purfoods, LLC*~
One stop L + 5.50%
(a)
 6.50% 05/2021 293  299  —  293  
Purfoods, LLC*
One stop L + 5.50%
(a)
 6.50% 05/2021 292  298  —  292  
See Notes to Consolidated Financial Statements.
9
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Beverage, Food and Tobacco - (continued)
Purfoods, LLC
One stop N/A 7.00% PIK 05/2026 $257  $262  —  %$257  
Purfoods, LLC*
One stop L + 5.50%
(a)
 6.50% 05/2021 253  254  —  253  
Purfoods, LLC
One stop L + 5.50%
(a)
 6.50% 05/2021 150  151  —  150  
Purfoods, LLC*
One stop L + 5.50%
(a)
 6.50% 05/2021 148  151  —  148  
Purfoods, LLC
One stop L + 5.50%
(a)
 6.50% 05/2021 139  138  —  139  
Purfoods, LLC
One stop L + 5.50%
(a)
 6.50% 05/2021 50  50  —  50  
Purfoods, LLC^
One stop L + 5.50%
(a)
 6.50% 05/2021 46  47  —  46  
Purfoods, LLC^
One stop L + 5.50%
(a)
 6.50% 05/2021 30  30  —  30  
Purfoods, LLC^
One stop L + 5.50%
(a)
 6.50% 05/2021 30  30  —  30  
Purfoods, LLC^
One stop L + 5.50%
(a)
 6.50% 05/2021 28  28  —  28  
Purfoods, LLC^
One stop L + 5.50%
(a)
 6.50% 05/2021 22  22  —  22  
Purfoods, LLC^
One stop L + 5.50%
(a)
 6.50% 05/2021 22  22  —  22  
Purfoods, LLC^
One stop L + 5.50%
(a)
 6.50% 05/2021 20  20  —  20  
Purfoods, LLC
One stop L + 5.50% 
N/A(6)
 05/2021 —  —  —  —  
Rubio's Restaurants, Inc.^*#(7)
Senior loan L + 11.50%
(c)
 8.77% cash/4.00% PIK 04/2021 17,898  17,779  0.4  9,348  
Rubio's Restaurants, Inc.(7)
Senior loan L + 11.50%
(a)
 8.75% cash/4.00% PIK 04/2021 162  159  —  82  
SSRG Holdings, LLC
One stop L + 5.25%
(c)
 6.32% 11/2025 920  904  —  847  
SSRG Holdings, LLC
One stop L + 5.25%
(c)
 6.29% 11/2025 75  74  —  69  
Velvet Taco Holdings, Inc.~
One stop L + 7.00%
(c)
 8.00% 03/2026 1,774  1,757  0.1  1,667  
Velvet Taco Holdings, Inc.(5)
One stop L + 7.00% 
N/A(6)
 03/2026 —  —  —  (2) 
Velvet Taco Holdings, Inc.(5)
One stop L + 7.00% 
N/A(6)
 03/2026 —  (1) —  —  
Wood Fired Holding Corp.*#
One stop L + 7.75%
(c)
 6.86% cash/2.00% PIK 12/2023 14,073  14,296  0.5  10,976  
Wood Fired Holding Corp.
One stop L + 7.75%
(c)
 6.95% cash/2.00% PIK 12/2023 697  697  —  544  
Wood Fired Holding Corp.
One stop L + 7.75%
(c)
 6.98% cash/2.00% PIK 12/2023 198  197  —  154  
233,458  236,492  9.2  216,006  
Buildings and Real Estate
Brooks Equipment Company, LLC^*#+
One stop L + 5.00%
(c)
 6.00% 05/2021 26,225  26,138  1.1  26,225  
Brooks Equipment Company, LLC(5)
One stop L + 5.00% 
N/A(6)
 05/2021 —  (14) —  —  
Groundworks LLC+
Senior loan L + 5.50%
(c)
 6.50% 01/2026 4,721  4,667  0.2  4,721  
Groundworks LLC
Senior loan L + 5.50%
(c)
 6.50% 01/2026 84  83  —  84  
Groundworks LLC
Senior loan L + 5.50%
(c)(d)
 6.54% 01/2026 7  7  —  7  
Jensen Hughes, Inc.
Senior loan L + 4.50%
(c)(f)
 5.50% 03/2024 4,202  4,202  0.2  4,076  
Jensen Hughes, Inc.
Senior loan L + 4.50%
(c)(f)
 5.50% 03/2024 1,068  1,104  0.1  1,024  
Jensen Hughes, Inc.#+
Senior loan L + 4.50%
(c)(f)
 5.50% 03/2024 915  931  —  889  
Jensen Hughes, Inc.
Senior loan L + 4.50%
(c)(f)
 5.50% 03/2024 440  455  —  427  
Jensen Hughes, Inc.#+
Senior loan L + 4.50%
(c)(f)
 5.50% 03/2024 281  284  —  272  
Jensen Hughes, Inc.
Senior loan L + 4.50%
(c)(f)
 5.50% 03/2024 219  219  —  212  
Jensen Hughes, Inc.
Senior loan L + 4.50%
(c)(f)
 5.50% 03/2024 117  117  —  113  
MRI Software LLC~
One stop L + 5.50%
(c)
 6.54% 02/2026 14,559  14,425  0.6  14,268  
MRI Software LLC(5)
One stop L + 5.50% 
N/A(6)
 02/2026 —  (3) —  (5) 
MRI Software LLC(5)
One stop L + 5.50% 
N/A(6)
 02/2026 —  (1) —  (3) 
52,838  52,614  2.2  52,310  
See Notes to Consolidated Financial Statements.
10
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Chemicals, Plastics and Rubber
Flexan, LLC
One stop L + 5.25%
(c)
 6.25% 02/2021 $8,473  $8,460  0.4  %$8,473  
Flexan, LLC*#
One stop L + 5.25%
(c)
 6.25% 02/2021 3,281  3,277  0.1  3,281  
Flexan, LLC
One stop L + 5.25%
(c)
 6.25% 02/2021 2,353  2,350  0.1  2,353  
Flexan, LLC^#
One stop L + 5.25%
(c)
 6.25% 02/2021 1,543  1,542  0.1  1,543  
Flexan, LLC
One stop L + 5.25%
(a)
 6.25% 02/2021 526  524  —  526  
Inhance Technologies Holdings LLC#
One stop L + 6.00%
(c)
 7.43% 07/2024 12,735  12,862  0.5  11,802  
Inhance Technologies Holdings LLC
One stop L + 5.50%
(b)
 6.94% 07/2024 1,935  1,922  0.1  1,793  
Inhance Technologies Holdings LLC
One stop L + 6.00%
(c)
 7.08% 07/2024 80  80  —  64  
Inhance Technologies Holdings LLC
One stop L + 6.00% 
N/A(6)
 07/2024 —  30  —  —  
30,926  31,047  1.3  29,835  
Containers, Packaging and Glass
AmerCareRoyal LLC+(8)(9)
Senior loan L + 5.00%
(a)
 6.00% 11/2025 845  837  0.1  811  
AmerCareRoyal LLC+(8)(9)
Senior loan L + 5.00%
(a)
 6.00% 11/2025 153  151  —  147  
Fortis Solutions Group LLC+
Senior loan L + 5.00%
(a)
 6.00% 12/2023 1,590  1,576  0.1  1,590  
Fortis Solutions Group LLC+
Senior loan L + 5.00%
(a)
 6.00% 12/2023 634  628  —  634  
Fortis Solutions Group LLC+
Senior loan L + 5.00%
(a)
 6.00% 12/2023 609  603  —  609  
Fortis Solutions Group LLC
Senior loan L + 5.00%
(a)
 6.00% 12/2023 20  20  —  20  
3,851  3,815  0.2  3,811  
Diversified/Conglomerate Manufacturing
Blackbird Purchaser, Inc. *+~
Senior loan L + 4.50%
(c)(f)
 4.81% 04/2026 15,570  15,853  0.6  14,792  
Blackbird Purchaser, Inc. (5)
Senior loan L + 4.50% 
N/A(6)
 04/2024 —  (1) —  (12) 
Blackbird Purchaser, Inc. (5)
Senior loan L + 4.50% 
N/A(6)
 04/2026 —  21  —  (24) 
Chase Industries, Inc.+~
Senior loan L + 7.00%
(c)
 6.50% cash/1.50% PIK 05/2025 12,059  12,186  0.4  9,631  
Chase Industries, Inc.
Senior loan L + 7.00%
(c)
 6.50% cash/1.50% PIK 05/2025 985  1,022  —  787  
Chase Industries, Inc.
Senior loan L + 7.00%
(c)
 6.50% cash/1.50% PIK 05/2023 354  358  —  282  
Inventus Power, Inc.^*+
One stop L + 6.00%
(a)
 7.00% 04/2021 14,400  13,875  0.6  14,400  
Inventus Power, Inc.(5)
One stop L + 6.00% 
N/A(6)
 04/2021 —  (23) —  —  
Madison Safety & Flow LLC+
Senior loan L + 4.50%
(a)
 4.68% 03/2025 500  499  —  490  
Madison Safety & Flow LLC
Senior loan L + 4.50%
(a)
 
N/A(6)
 03/2025 —  —  —  —  
Pasternack Enterprises, Inc. and Fairview Microwave, Inc+~
Senior loan L + 4.00%
(a)
 4.18% 07/2025 23,699  23,934  1.0  23,224  
Pasternack Enterprises, Inc. and Fairview Microwave, Inc
Senior loan L + 4.00%
(c)
 4.82% 07/2023 36  36  —  34  
PetroChoice Holdings, Inc.^#
Senior loan L + 5.00%
(c)
 6.00% 08/2022 3,284  3,292  0.1  3,153  
Protective Industrial Products, Inc.+
Senior loan L + 4.50%
(c)
 5.19% 01/2024 995  986  —  995  
Reladyne, Inc.^*#
Senior loan L + 5.00%
(d)
 6.09% 07/2022 32,949  33,199  1.4  31,961  
Reladyne, Inc.~
Senior loan L + 5.00%
(d)
 6.09% 07/2022 3,491  3,558  0.1  3,387  
Reladyne, Inc.^#
Senior loan L + 5.00%
(d)
 6.09% 07/2022 1,890  1,926  0.1  1,834  
Reladyne, Inc.
Senior loan L + 5.00%
(d)
 6.09% 07/2022 1,724  1,777  0.1  1,672  
Reladyne, Inc.#~
Senior loan L + 5.00%
(d)
 6.09% 07/2022 1,629  1,660  0.1  1,580  
Reladyne, Inc.#
Senior loan L + 5.00%
(d)
 6.09% 07/2022 1,550  1,597  0.1  1,503  
Reladyne, Inc.#~
Senior loan L + 5.00%
(d)
 6.09% 07/2022 743  756  —  721  
Togetherwork Holdings, LLC*#
One stop L + 5.75%
(a)
 6.75% 03/2025 15,604  15,754  0.6  14,823  
Togetherwork Holdings, LLC+~
One stop L + 5.75%
(a)
 6.75% 03/2025 1,808  1,874  0.1  1,717  
Togetherwork Holdings, LLC
One stop L + 5.75%
(a)
 6.75% 03/2025 1,755  1,816  0.1  1,667  
See Notes to Consolidated Financial Statements.
11
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Manufacturing - (continued)
Togetherwork Holdings, LLC*#
One stop L + 5.75%
(a)
 6.75% 03/2025 $1,711  $1,772  0.1  %$1,625  
Togetherwork Holdings, LLC+~
One stop L + 5.75%
(a)
 6.75% 03/2025 1,652  1,686  0.1  1,570  
Togetherwork Holdings, LLC*+
One stop L + 5.75%
(a)
 6.75% 03/2025 1,593  1,650  0.1  1,513  
Togetherwork Holdings, LLC
One stop L + 5.75%
(a)
 6.75% 03/2025 1,485  1,536  0.1  1,410  
Togetherwork Holdings, LLC*#
One stop L + 5.75%
(a)
 6.75% 03/2025 1,215  1,235  —  1,155  
Togetherwork Holdings, LLC
One stop L + 5.75%
(a)
 6.75% 03/2025 670  693  —  636  
Togetherwork Holdings, LLC+
One stop L + 5.75%
(a)
 6.75% 03/2025 448  444  —  426  
Togetherwork Holdings, LLC
One stop L + 5.75%
(a)
 6.75% 03/2024 300  298  —  286  
Togetherwork Holdings, LLC
One stop L + 5.75%
(a)
 6.75% 03/2025 64  67  —  61  
Togetherwork Holdings, LLC~
One stop L + 5.75%
(a)
 6.75% 03/2025 59  62  —  57  
144,222  145,398  5.8  137,356  
Diversified/Conglomerate Service
3ES Innovation, Inc.+~(8)(12)
One stop L + 5.75%
(c)
 7.48% 05/2025 13,796  14,053  0.6  13,105  
3ES Innovation, Inc.(5)(8)(12)
One stop L + 5.75% 
N/A(6)
 05/2025 —  (2) —  (10) 
Accela, Inc.*#
One stop L + 4.90%
(a)
 4.25% cash/1.65% PIK 09/2023 4,461  4,461  0.2  4,326  
Accela, Inc.(5)
One stop L + 7.00% 
N/A(6)
 09/2023 —  —  —  (4) 
Acquia, Inc.!~
One stop L + 7.00%
(c)
 8.00% 10/2025 7,118  7,055  0.3  7,118  
Acquia, Inc.
One stop L + 7.00% 
N/A(6)
 10/2025 —  —  —  —  
Agility Recovery Solutions Inc.^*#
One stop L + 6.00%
(c)
 7.00% 03/2023 22,443  22,578  0.9  21,995  
Agility Recovery Solutions Inc.
One stop L + 6.00%
(c)
 7.00% 03/2023 902  898  —  882  
Apptio, Inc. !~
One stop L + 7.25%
(d)
 8.25% 01/2025 57,009  57,763  2.4  57,009  
Apptio, Inc. (5)
One stop L + 7.25% 
N/A(6)
 01/2025 —  (1) —  —  
Arch Global CCT Holdings Corp.#+~
Senior loan L + 4.75%
(c)
 5.82% 04/2026 4,154  4,191  0.2  3,822  
Arch Global CCT Holdings Corp.(5)
Senior loan L + 4.75% 
N/A(6)
 04/2025 —  —  —  (6) 
Arch Global CCT Holdings Corp.(5)
Senior loan L + 4.75% 
N/A(6)
 04/2026 —  —  —  (7) 
Astute Holdings, Inc. !
One stop L + 6.00%
(c)
 7.07% 04/2025 10,853  11,024  0.5  10,853  
Astute Holdings, Inc. (5)
One stop L + 6.00% 
N/A(6)
 04/2025 —  (1) —  —  
Astute Holdings, Inc. (5)
One stop L + 6.00% 
N/A(6)
 04/2025 —  (2) —  —  
Aurora Lux Finco S.A.R.L.!(8)(13)
One stop L + 6.00%
(c)
 7.00% 12/2026 998  974  —  898  
AutoQuotes, LLC!
One stop L + 5.75%
(c)
 6.75% 11/2024 9,888  10,031  0.4  9,690  
AutoQuotes, LLC
One stop L + 5.75%
(c)
 6.75% 11/2024 100  100  —  98  
Axiom Merger Sub Inc.!~
One stop L + 5.25%
(c)
 6.36% 04/2026 5,861  5,917  0.3  5,861  
Axiom Merger Sub Inc.+~(8)(9)
One stop E + 5.50%
(g)
 5.50% 04/2026 2,416  2,439  0.1  2,408  
Axiom Merger Sub Inc.
One stop L + 5.25%
(c)
 6.25% 04/2026 30  29  —  30  
Bazaarvoice, Inc.*#+~
One stop L + 5.75%
(a)(c)
 6.79% 02/2024 48,249  49,050  2.1  48,249  
Bazaarvoice, Inc.
One stop L + 5.75%
(a)(c)
 6.75% 02/2024 400  397  —  400  
Bearcat Buyer, Inc.+~
Senior loan L + 4.25%
(c)
 4.56% 07/2026 2,935  2,959  0.1  2,935  
Bearcat Buyer, Inc.~
Senior loan L + 4.25%
(c)
 4.56% 07/2026 310  307  —  310  
Bearcat Buyer, Inc.
Senior loan L + 4.25%
(c)
 4.56% 07/2026 165  166  —  165  
Bearcat Buyer, Inc.
Senior loan L + 4.25% 
N/A(6)
 07/2024 —  —  —  —  
Bullhorn, Inc.#+~
One stop L + 5.50%
(d)
 6.57% 10/2025 67,472  66,594  2.8  66,123  
Bullhorn, Inc.(8)(9)
One stop L + 6.00%
(d)
 6.70% 10/2025 12,039  11,881  0.5  11,902  
Bullhorn, Inc.(8)(9)
One stop L + 5.75%
(d)
 5.75% 10/2025 4,834  4,771  0.2  4,818  
See Notes to Consolidated Financial Statements.
12
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Bullhorn, Inc.
One stop L + 5.50%
(c)
 6.50% 10/2025 $239  $236  —  %$234  
Bullhorn, Inc.
One stop L + 5.50%
(d)
 6.57% 10/2025 78  77  —  77  
Bullhorn, Inc.
One stop L + 0.00%
(d)
 6.57% 10/2025 59  55  —  52  
Calabrio, Inc. !~
One stop L + 6.50%
(c)
 7.50% 06/2025 24,880  24,895  1.1  24,880  
Calabrio, Inc. One stop L + 6.50%
(a)
 7.50% 06/2025 72  72  —  72  
Centrify Corporation*#
One stop L + 8.25%
(c)
 9.33% 08/2024 23,299  23,339  1.0  22,367  
Centrify Corporation
One stop P + 7.25%
(f)
 10.50% 08/2024 200  202  —  192  
Clearwater Analytics, LLC^*#
One stop L + 5.50%
(d)
 7.09% 09/2022 16,458  16,454  0.7  16,458  
Clearwater Analytics, LLC*
One stop L + 5.50%
(d)
 6.50% 09/2022 6,056  6,090  0.3  6,056  
Clearwater Analytics, LLC+
One stop L + 5.50%
(d)
 6.50% 09/2022 992  976  —  992  
Clearwater Analytics, LLC(5)
One stop L + 5.50% 
N/A(6)
 09/2022 —  (3) —  —  
Cloudbees, Inc.
One stop L + 9.00%
(a)
 9.50% cash/0.50% PIK 05/2023 4,209  4,246  0.2  4,188  
Cloudbees, Inc.
One stop L + 9.00%
(a)
 9.50% cash/0.50% PIK 05/2023 2,771  2,681  0.1  2,758  
Cloudbees, Inc.
One stop L + 9.00%
(a)
 9.50% cash/0.50% PIK 05/2023 1,468  1,484  0.1  1,460  
Cloudbees, Inc.
One stop L + 8.50% 
N/A(6)
 05/2023 —  —  —  —  
Confluence Technologies, Inc.+~
One stop L + 5.75%
(a)
 6.75% 03/2024 45,117  44,865  1.9  44,666  
Confluence Technologies, Inc.
One stop L + 5.75%
(a)
 6.75% 03/2024 69  68  —  66  
Connexin Software, Inc.!~
One stop L + 8.50%
(a)
 9.50% 02/2024 7,550  7,621  0.3  7,550  
Connexin Software, Inc.
One stop L + 8.50%
(a)
 9.50% 02/2024 20  20  —  20  
Convercent, Inc.
One stop L + 9.00%
(c)
 8.25% cash/2.75% PIK 12/2024 2,776  2,701  0.1  2,810  
Convercent, Inc.
Subordinated debt N/A 4.00% 11/2020 138  138  —  164  
Convercent, Inc.
One stop L + 9.00%
(c)
 8.25% cash/2.75% PIK 12/2024 20  20  —  20  
Convercent, Inc.
One stop L + 6.25% 
N/A(6)
 12/2024 —  —  —  —  
Daxko Acquisition Corporation^*#
One stop L + 4.75%
(c)
 5.75% 09/2023 22,002  22,260  0.9  22,002  
Daxko Acquisition Corporation
One stop L + 4.75%
(a)(c)
 5.75% 09/2023 68  68  —  68  
Digital Guardian, Inc.!
One stop L + 9.50%
(c)
 7.93% cash/3.00% PIK 06/2023 8,666  8,973  0.4  8,963  
Digital Guardian, Inc.
Subordinated debt N/A 8.00% PIK 06/2023 9  7  —  9  
Digital Guardian, Inc.
One stop L + 5.00% 
N/A(6)
 06/2023 —  —  —  2  
DISA Holdings Acquisition Subsidiary Corp.+~
Senior loan L + 4.00%
(c)
 5.26% 06/2022 9,840  9,927  0.4  8,758  
DISA Holdings Acquisition Subsidiary Corp.
Senior loan L + 4.00%
(c)
 5.00% 06/2022 1,448  1,448  0.1  1,289  
DISA Holdings Acquisition Subsidiary Corp.(5)
Senior loan L + 4.00% 
N/A(6)
 06/2022 —  3  —  (38) 
E2open, LLC*#+!~
One stop L + 5.75%
(c)
 6.75% 11/2024 86,120  87,042  3.6  84,398  
E2open, LLC(5)
One stop L + 5.75% 
N/A(6)
 11/2024 —  (5) —  (10) 
EGD Security Systems, LLC^*#
One stop L + 5.75%
(c)
 7.10% 06/2023 30,092  30,486  1.3  30,092  
EGD Security Systems, LLC
One stop L + 5.75%
(c)
 6.99% 06/2023 1,258  1,257  0.1  1,258  
EGD Security Systems, LLC#
One stop L + 5.75%
(c)
 7.10% 06/2023 644  665  —  644  
EGD Security Systems, LLC#
One stop L + 5.75%
(c)
 7.10% 06/2023 575  571  —  575  
EGD Security Systems, LLC(5)
One stop L + 5.75% 
N/A(6)
 06/2023 —  (1) —  —  
EWC Growth Partners LLC
One stop L + 5.50%
(c)
 6.50% 03/2026 916  898  —  824  
EWC Growth Partners LLC
One stop L + 5.50%
(c)
 6.50% 03/2026 30  29  —  27  
EWC Growth Partners LLC
One stop L + 5.50%
(c)
 6.50% 03/2026 18  18  —  16  
GS Acquisitionco, Inc.*#+!~
One stop L + 5.75%
(c)
 6.83% 05/2024 54,184  54,603  2.3  54,184  
GS Acquisitionco, Inc.*#
One stop L + 5.75%
(c)
 6.83% 05/2024 12,788  13,110  0.5  12,788  
See Notes to Consolidated Financial Statements.
13
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
GS Acquisitionco, Inc.#
One stop L + 5.75%
(c)
 6.83% 05/2024 $3,294  $3,378  0.1  %$3,294  
GS Acquisitionco, Inc.+~
One stop L + 5.75%
(c)
 6.83% 05/2024 3,040  3,118  0.1  3,040  
GS Acquisitionco, Inc.#
One stop L + 5.75%
(c)
 6.83% 05/2024 1,904  1,952  0.1  1,904  
GS Acquisitionco, Inc.
One stop L + 5.75%
(d)
 6.83% 05/2024 90  88  —  90  
GS Acquisitionco, Inc.
One stop L + 5.75%
(c)(d)
 6.85% 05/2024 75  75  —  75  
GS Acquisitionco, Inc.
One stop L + 5.75% 
N/A(6)
 05/2024 —  —  —  —  
HealthcareSource HR, Inc.*#
One stop L + 6.25%
(c)
 7.25% 05/2023 33,830  33,862  1.4  33,830  
HealthcareSource HR, Inc.(5)
One stop L + 6.25% 
N/A(6)
 05/2023 —  (2) —  —  
HealthEdge Software, Inc.
One stop L + 6.25%
(a)
 7.25% 04/2026 2,000  1,957  0.1  1,955  
HealthEdge Software, Inc.(5)
One stop L + 6.25% 
N/A(6)
 04/2026 —  (1) —  (1) 
HealthEdge Software, Inc.(5)
One stop L + 6.25% 
N/A(6)
 04/2026 —  (2) —  (3) 
HSI Halo Acquisition, Inc.+~
One stop L + 5.75%
(a)
 6.75% 08/2026 6,330  6,289  0.3  6,202  
HSI Halo Acquisition, Inc.
One stop L + 5.75%
(a)
 6.75% 08/2026 311  305  —  297  
HSI Halo Acquisition, Inc.
One stop P + 4.75%
(f)
 8.00% 09/2025 64  63  —  62  
Hydraulic Authority III Limited~(8)(9)(10)
One stop L + 6.00%
(i)(j)(k)
 7.00% 11/2025 12,308  12,526  0.5  11,878  
Hydraulic Authority III Limited(8)(9)(10)
One stop N/A 11.00% PIK 11/2028 198  202  —  196  
Hydraulic Authority III Limited(8)(9)(10)
One stop L + 6.00%
(d)
 7.00% 11/2025 59  59  —  60  
ICIMS, Inc.!~
One stop L + 6.50%
(c)
 7.50% 09/2024 14,355  14,560  0.6  14,355  
ICIMS, Inc.!~
One stop L + 6.50%
(c)
 7.50% 09/2024 4,500  4,580  0.2  4,500  
ICIMS, Inc.(5)
One stop L + 6.50% 
N/A(6)
 09/2024 —  (1) —  —  
Imprivata, Inc.*#+~
Senior loan L + 4.00%
(c)
 5.00% 10/2023 9,237  9,435  0.4  9,237  
Imprivata, Inc.(5)
Senior loan L + 4.00% 
N/A(6)
 10/2023 —  (1) —  —  
Infinisource, Inc.+~
One stop L + 4.50%
(c)
 5.50% 10/2026 29,254  28,811  1.2  28,377  
Infinisource, Inc.
One stop L + 4.50%
(c)
 5.50% 10/2026 111  110  —  108  
Infinisource, Inc.(5)
One stop L + 4.50% 
N/A(6)
 10/2026 —  (2) —  (5) 
Infinisource, Inc.(5)
One stop L + 4.50% 
N/A(6)
 10/2026 —  (3) —  (9) 
Infogix, Inc.*#
One stop L + 7.00%
(c)
 8.00% 04/2024 7,197  7,336  0.3  7,052  
Infogix, Inc.*+
One stop L + 7.00%
(c)
 7.30% 04/2024 1,110  1,128  —  1,088  
Infogix, Inc.
One stop L + 7.00%
(c)
 8.00% 04/2024 90  91  —  88  
Property Brands, Inc.#
One stop L + 5.75%
(c)
 6.75% 01/2024 19,895  20,102  0.8  18,901  
Property Brands, Inc.+~
One stop L + 5.75%
(c)
 6.75% 01/2024 13,702  13,576  0.6  13,016  
Property Brands, Inc.*#
One stop L + 5.75%
(c)
 6.75% 01/2024 6,669  6,787  0.3  6,336  
Property Brands, Inc.^~One stop L + 5.75%
(c)
 6.75% 01/2024 3,251  3,364  0.1  3,088  
Property Brands, Inc.
One stop L + 5.75%
(c)
 6.75% 01/2024 1,428  1,475  0.1  1,356  
Property Brands, Inc.#
One stop L + 5.75%
(c)
 6.75% 01/2024 1,209  1,249  0.1  1,148  
Property Brands, Inc.
One stop L + 5.75%
(c)
 6.75% 01/2024 1,191  1,233  —  1,132  
Property Brands, Inc.
One stop L + 5.75%
(c)
 6.75% 01/2024 955  948  —  907  
Property Brands, Inc.
One stop L + 5.75%
(c)
 6.75% 01/2024 502  520  —  478  
Property Brands, Inc.
One stop L + 5.75%
(c)
 6.75% 01/2024 200  199  —  190  
Property Brands, Inc.(5)
One stop L + 5.75% 
N/A(6)
 01/2024 —  (2) —  (175) 
Integral Ad Science, Inc.!~
One stop L + 7.25%
(c)
 7.00% cash/1.25% PIK 07/2024 15,832  16,031  0.7  15,515  
Integral Ad Science, Inc.(5)
One stop L + 6.00% 
N/A(6)
 07/2023 —  (3) —  (6) 
Integration Appliance, Inc.^*!~
One stop L + 7.25%
(c)
 9.43% 08/2023 68,335  69,184  2.9  68,335  
See Notes to Consolidated Financial Statements.
14
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Integration Appliance, Inc.
One stop L + 7.25%
(a)
 8.25% 08/2023 $973  $969  —  %$973  
Internet Truckstop Group LLC*#!
One stop L + 5.50%
(c)
 6.50% 04/2025 22,644  23,254  0.9  22,192  
Internet Truckstop Group LLC(5)
One stop L + 5.50% 
N/A(6)
 04/2025 —  (2) —  (6) 
Invoice Cloud, Inc.!
One stop L + 6.50%
(c)
 4.25% cash/3.25% PIK 02/2024 6,467  6,508  0.3  6,337  
Invoice Cloud, Inc.
One stop L + 7.75%
(c)
 4.25% cash/3.25% PIK 02/2024 2,168  2,167  0.1  2,120  
Invoice Cloud, Inc.(5)
One stop L + 6.00% 
N/A(6)
 02/2024 —  —  —  (2) 
JAMF Holdings, Inc.!~
One stop L + 7.00%
(c)
 8.00% 11/2022 13,559  13,746  0.6  13,559  
JAMF Holdings, Inc.
One stop L + 7.00% 
N/A(6)
 11/2022 —  —  —  —  
Kareo, Inc.
One stop L + 9.00%
(a)
 10.00% 06/2022 10,273  10,403  0.4  10,358  
Kareo, Inc.!
One stop L + 9.00%
(a)
 10.00% 06/2022 941  957  —  949  
Kareo, Inc.
One stop L + 9.00%
(a)
 10.00% 06/2022 753  767  —  759  
Kareo, Inc.
One stop P + 8.00%
(f)
 11.25% 06/2022 80  80  —  80  
Kaseya Traverse Inc!~
One stop L + 7.00%
(c)
 5.09% cash/3.00% PIK 05/2025 35,799  36,814  1.5  35,799  
Kaseya Traverse Inc
One stop L + 7.00%
(d)
 5.09% cash/3.00% PIK 05/2025 505  523  —  505  
Kaseya Traverse Inc
One stop L + 6.50%
(c)
 7.50% 05/2025 181  180  —  177  
Kaseya Traverse Inc(5)
One stop L + 4.00% 
N/A(6)
 05/2025 —  (1) —  —  
Learn-it Systems, LLC!
Senior loan L + 4.50%
(c)
 5.00% 03/2025 2,547  2,603  0.1  2,445  
Learn-it Systems, LLCSenior loan L + 4.50%
(c)
 5.31% 03/2025 345  344  —  331  
Learn-it Systems, LLC(5)
Senior loan L + 4.50% 
N/A(6)
 03/2025 —  —  —  (2) 
Litera Bidco LLC+~
One stop L + 5.25%
(c)
 6.25% 05/2026 3,695  3,720  0.2  3,695  
Litera Bidco LLC
One stop L + 5.25%
(c)
 6.25% 05/2026 704  729  —  704  
Litera Bidco LLC
One stop L + 5.25%
(c)
 6.25% 05/2026 704  730  —  704  
Litera Bidco LLC
One stop L + 5.25%
(c)
 6.25% 05/2025 60  60  —  60  
Maverick Bidco Inc.*#!~
One stop L + 6.25%
(c)
 7.25% 04/2023 39,565  39,806  1.7  39,565  
Maverick Bidco Inc.*#
One stop L + 6.25%
(c)
 7.25% 04/2023 3,191  3,250  0.1  3,191  
Maverick Bidco Inc.
One stop L + 6.25%
(c)
 7.32% 04/2023 202  199  —  202  
MetricStream, Inc.!
One stop L + 7.00%
(c)
 9.00% 05/2024 9,131  9,215  0.4  9,196  
MetricStream, Inc.
One stop L + 7.00% 
N/A(6)
 05/2024 —  —  —  2  
MetricStream, Inc.
One stop L + 7.00% 
N/A(6)
 04/2024 —  10  —  14  
Mindbody, Inc.!~
One stop L + 9.50%
(c)
 9.00% cash/1.50% PIK 02/2025 48,407  49,239  1.9  45,503  
Mindbody, Inc.
One stop L + 8.00%
(c)
 9.07% 02/2025 238  237  —  224  
Ministry Brands, LLC+
Senior loan L + 4.00%
(c)
 5.00% 12/2022 1,449  1,468  0.1  1,362  
Ministry Brands, LLC+
Senior loan L + 4.00%
(c)
 5.00% 12/2022 829  840  —  780  
Ministry Brands, LLC
Senior loan L + 4.00%
(c)
 5.00% 12/2022 378  390  —  355  
MSHC, Inc.+
Senior loan L + 4.25%
(c)
 5.25% 12/2024 344  341  —  337  
MSHC, Inc.
Senior loan L + 4.25%
(c)
 5.25% 12/2024 9  9  —  8  
Namely, Inc.!~
One stop L + 7.50%
(c)
 8.25% cash/1.25% PIK 06/2024 3,569  3,605  0.2  3,497  
Namely, Inc.
One stop L + 7.50%
(c)
 8.25% cash/1.25% PIK 06/2024 2,026  2,012  0.1  1,958  
Namely, Inc.
One stop L + 7.50%
(a)
 8.25% cash/1.25% PIK 06/2024 70  70  —  68  
Net Health Acquisition Corp.*#
One stop L + 5.50%
(c)
 6.57% 12/2023 8,576  8,685  0.4  8,576  
Net Health Acquisition Corp.+~
One stop L + 5.50%
(c)
 6.57% 12/2023 6,862  6,990  0.3  6,862  
Net Health Acquisition Corp.*#
One stop L + 5.50%
(c)
 6.57% 12/2023 1,198  1,214  0.1  1,198  
Net Health Acquisition Corp.(5)
One stop L + 5.50% 
N/A(6)
 12/2023 —  (2) —  —  
See Notes to Consolidated Financial Statements.
15
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Netsmart Technologies, Inc.(5)
Senior loan L + 4.75% 
N/A(6)
 04/2021 $—  $(2) —  %$(8) 
Nextech Holdings, LLC+~
One stop L + 5.50%
(a)
 5.68% 06/2025 4,022  4,091  0.2  3,780  
Nextech Holdings, LLC
One stop L + 5.50%
(a)
 5.68% 06/2025 500  497  —  464  
Nextech Holdings, LLC(5)
One stop L + 5.50% 
N/A(6)
 06/2025 —  (20) —  (141) 
Nexus Brands Group, Inc.*#
One stop L + 6.00%
(c)
 7.00% 11/2023 9,402  9,502  0.4  8,650  
Nexus Brands Group, Inc.+~(8)(9)
One stop L + 6.00%
(i)(k)
 7.00% 11/2023 7,163  7,290  0.3  6,504  
Nexus Brands Group, Inc.#
One stop L + 6.00%
(c)
 7.00% 11/2023 1,991  2,061  0.1  1,832  
Nexus Brands Group, Inc.#~
One stop L + 6.00%
(c)
 7.00% 11/2023 1,441  1,491  0.1  1,326  
Nexus Brands Group, Inc.~
One stop L + 6.00%
(c)
 7.00% 11/2023 767  761  —  706  
Nexus Brands Group, Inc.
One stop L + 6.00%
(c)(d)
 7.04% 11/2023 60  61  —  44  
Nexus Brands Group, Inc.(5)(8)(9)
One stop L + 6.00% 
N/A(6)
 11/2023 —  (1) —  —  
Nexus Brands Group, Inc.(5)
One stop L + 6.00% 
N/A(6)
 11/2023 —  (1) —  —  
Nexus Brands Group, Inc.(5)(8)(9)
One stop L + 6.00% 
N/A(6)
 11/2023 —  (6) —  (6) 
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH!
One stop P + 6.75%
(f)
 8.25% cash/1.75% PIK 10/2024 2,130  2,110  0.1  2,237  
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH
One stop L + 6.00% 
N/A(6)
 10/2024 —  —  —  1  
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH
One stop L + 7.75% 
N/A(6)
 10/2024 —  —  —  4  
PCS Intermediate II Holdings, LLC~
One stop L + 5.50%
(c)
 6.50% 01/2026 14,529  14,394  0.6  14,239  
PCS Intermediate II Holdings, LLC
One stop L + 5.50%
(d)
 6.68% 01/2026 27  26  —  25  
Personify, Inc.*+
One stop L + 5.75%
(c)
 6.75% 09/2024 15,496  15,767  0.6  14,876  
Personify, Inc.
One stop L + 5.75%
(c)
 6.75% 09/2024 80  80  —  74  
PlanSource Holdings, Inc. !~
One stop L + 6.25%
(d)
 7.95% 04/2025 11,416  11,549  0.5  11,416  
PlanSource Holdings, Inc. (5)
One stop L + 6.25% 
N/A(6)
 04/2025 —  (1) —  —  
Project Power Buyer, LLC+~
One stop L + 5.25%
(c)
 6.25% 05/2026 11,525  11,745  0.5  11,525  
Project Power Buyer, LLC(5)
One stop L + 5.25% 
N/A(6)
 05/2025 —  (1) —  —  
PT Intermediate Holdings III, LLC+~
One stop L + 5.50%
(c)
 6.50% 10/2025 29,850  29,440  1.2  27,462  
Qgenda Intermediate Holdings, LLC+
One stop L + 5.00%
(c)
 6.00% 06/2025 15,316  15,335  0.7  15,316  
Qgenda Intermediate Holdings, LLC~
One stop L + 5.00%
(c)
 6.00% 06/2025 995  986  —  995  
Qgenda Intermediate Holdings, LLC
One stop L + 5.00%
(c)
 6.00% 06/2025 200  198  —  200  
Recordxtechnologies, LLC+
One stop L + 5.50%
(c)
 6.50% 12/2025 745  737  —  715  
Recordxtechnologies, LLC
One stop L + 5.50%
(c)
 6.50% 12/2025 41  40  —  38  
Recordxtechnologies, LLC(5)
One stop L + 5.50% 
N/A(6)
 12/2025 —  (2) —  —  
RegEd Aquireco, LLC+
Senior loan L + 4.25%
(a)
 5.25% 12/2024 11,445  11,442  0.5  10,530  
RegEd Aquireco, LLC
Senior loan P + 3.25%
(a)(f)
 5.72% 12/2024 236  235  —  214  
RegEd Aquireco, LLC(5)
Senior loan L + 4.25% 
N/A(6)
 12/2024 —  (5) —  —  
SnapLogic, Inc.
One stop L + 8.75%
(c)
 5.75% cash/5.50% PIK 09/2024 5,896  5,825  0.3  5,896  
SnapLogic, Inc.
One stop L + 8.75%
(c)
 5.75% cash/5.50% PIK 09/2024 60  60  —  60  
SnapLogic, Inc.
One stop L + 3.25% 
N/A(6)
 09/2024 —  —  —  —  
Sontatype, Inc.!
One stop L + 6.75%
(d)
 7.75% 12/2025 850  842  —  850  
Sontatype, Inc.(5)
One stop L + 6.75% 
N/A(6)
 12/2025 —  (3) —  —  
Caliper Software, Inc.#!~
One stop L + 5.50%
(c)
 6.57% 11/2025 28,004  28,468  1.1  26,884  
Caliper Software, Inc.
One stop L + 5.50%
(c)
 5.81% 11/2023 350  353  —  336  
Telesoft Holdings LLC~
One stop L + 6.00%
(c)
 7.00% 12/2025 907  888  —  907  
See Notes to Consolidated Financial Statements.
16
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Telesoft Holdings LLC(5)
One stop L + 6.00% 
N/A(6)
 12/2025 $—  $(2) —  %$—  
TI Intermediate Holdings, LLC+
Senior loan L + 4.50%
(c)
 4.81% 12/2024 3,526  3,587  0.1  3,385  
TI Intermediate Holdings, LLC
Senior loan L + 4.50%
(a)
 4.68% 12/2024 42  42  —  40  
Transact Holdings, Inc.+~
Senior loan L + 4.75%
(a)
 4.93% 04/2026 3,087  3,131  0.1  2,809  
Transaction Data Systems, Inc.*#+!~
One stop L + 5.25%
(c)
 6.25% 06/2021 83,689  84,778  3.6  83,689  
Transaction Data Systems, Inc.
One stop L + 5.25%
(c)
 6.25% 06/2021 300  302  —  300  
Trintech, Inc.^*#
One stop L + 6.00%
(c)
 7.00% 12/2023 22,417  22,781  1.0  22,417  
Trintech, Inc.^#!
One stop L + 6.00%
(c)
 7.00% 12/2023 9,294  9,494  0.4  9,294  
Trintech, Inc.
One stop L + 6.00%
(c)
 7.00% 12/2023 300  301  —  300  
True Commerce, Inc.^*#~
One stop L + 5.75%
(c)
 6.75% 11/2023 14,597  14,882  0.6  14,598  
True Commerce, Inc.+(8)(9)
One stop L + 5.75%
(c)
 6.75% 11/2023 2,582  2,679  0.1  2,576  
True Commerce, Inc.#
One stop L + 5.75%
(c)
 6.75% 11/2023 912  946  —  912  
True Commerce, Inc.
One stop L + 5.75%
(c)
 6.75% 11/2023 150  149  —  150  
Upserve, Inc.!~
One stop L + 8.00%
(e)
 9.00% 07/2023 6,141  6,198  0.3  5,834  
Upserve, Inc.
One stop L + 8.00%
(e)
 9.00% 07/2023 1,451  1,500  0.1  1,379  
Upserve, Inc.(5)
One stop L + 8.00% 
N/A(6)
 07/2023 —  —  —  (4) 
Vector CS Midco Limited & Cloudsense Ltd.!~(8)(9)(10)
One stop L + 7.25%
(c)
 5.30% cash/2.75% PIK 05/2024 7,796  7,921  0.3  7,208  
Vector CS Midco Limited & Cloudsense Ltd.(8)(9)(10)
One stop L + 7.25%
(c)
 5.30% cash/2.75% PIK 05/2024 116  116  —  118  
Velocity Technology Solutions, Inc.*#
One stop L + 6.00%
(c)
 7.00% 12/2023 18,323  18,625  0.8  18,324  
Velocity Technology Solutions, Inc.
One stop L + 6.00%
(d)
 7.45% 12/2023 100  99  —  100  
Vendavo, Inc.*!~
One stop L + 6.50%
(c)
 7.50% 10/2022 35,458  35,415  1.5  35,458  
Vendavo, Inc.
One stop P + 5.25%
(f)
 8.50% 10/2022 1,579  1,576  0.1  1,579  
Verisys Corporation*#
One stop L + 7.75%
(c)
 8.75% 01/2023 8,489  8,629  0.4  8,235  
Verisys Corporation
One stop L + 7.75%
(c)
 8.75% 01/2023 40  39  —  38  
Workforce Software, LLC!~
One stop L + 6.50%
(c)
 7.50% 07/2025 27,127  27,863  1.2  27,127  
Workforce Software, LLC(5)
One stop L + 6.50% 
N/A(6)
 07/2025 —  (2) —  —  
1,555,490  1,569,214  65.1  1,530,244  
Ecological
Pace Analytical Services, LLC*#!
One stop L + 5.25%
(c)
 6.25% 09/2022 29,716  30,047  1.3  29,717  
Pace Analytical Services, LLC^#
One stop L + 5.25%
(c)
 6.25% 09/2022 2,763  2,799  0.1  2,763  
Pace Analytical Services, LLC*#
One stop L + 5.25%
(c)
 6.25% 09/2022 1,656  1,706  0.1  1,656  
Pace Analytical Services, LLC*#
One stop L + 5.25%
(c)
 6.25% 09/2022 1,523  1,546  0.1  1,523  
Pace Analytical Services, LLC*#
One stop L + 5.25%
(c)
 6.25% 09/2022 1,267  1,279  0.1  1,267  
Pace Analytical Services, LLC^#
One stop L + 5.25%
(c)
 6.25% 09/2022 1,225  1,262  0.1  1,225  
Pace Analytical Services, LLC
One stop L + 5.25%
(c)
 6.25% 09/2022 995  979  —  995  
Pace Analytical Services, LLC*#
One stop L + 5.25%
(c)
 6.25% 09/2022 678  688  —  678  
Pace Analytical Services, LLC*#
One stop L + 5.25%
(c)
 6.25% 09/2022 561  578  —  561  
Pace Analytical Services, LLC*
One stop L + 5.25%
(c)
 6.25% 09/2022 188  194  —  188  
Pace Analytical Services, LLC
One stop L + 5.25%
(c)
 6.60% 09/2022 98  98  —  98  
WRE Holding Corp.*#
Senior loan L + 5.00%
(b)(c)
 6.00% 01/2023 2,282  2,322  0.1  2,236  
WRE Holding Corp.~
Senior loan L + 5.00%
(b)(c)
 6.00% 01/2023 942  974  —  923  
WRE Holding Corp.
Senior loan L + 5.00%
(b)(c)
 6.00% 01/2023 311  322  —  306  
See Notes to Consolidated Financial Statements.
17
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Ecological - (continued)
WRE Holding Corp.
Senior loan L + 5.00%
(a)(c)
 6.00% 01/2023 $54  $54  —  %$52  
44,259  44,848  1.9  44,188  
Electronics
Appriss Holdings, Inc.#+~
One stop L + 5.50%
(a)(c)(d)
 5.86% 06/2026 25,032  25,768  1.1  24,532  
Appriss Holdings, Inc.
One stop L + 5.50%
(a)
 5.68% 06/2025 201  197  —  193  
Diligent Corporation*#+!
One stop L + 5.50%
(d)
 6.57% 04/2022 35,533  36,493  1.5  35,533  
Diligent Corporation*~One stop L + 5.50%
(d)
 6.57% 04/2022 25,671  25,532  1.1  25,671  
Diligent Corporation#~
One stop L + 5.50%
(c)
 6.95% 04/2022 12,443  12,656  0.5  12,443  
Diligent Corporation^*#
One stop L + 5.50%
(d)
 6.95% 04/2022 11,222  11,480  0.5  11,222  
Diligent Corporation#
One stop L + 5.50%
(c)(d)
 6.54% 04/2022 1,260  1,259  0.1  1,260  
Diligent Corporation
One stop L + 5.50%
(c)(d)
 6.50% 04/2022 485  499  —  485  
Diligent Corporation
One stop L + 5.50%
(d)
 6.50% 04/2022 285  287  —  285  
Diligent Corporation~One stop L + 5.50%
(d)
 6.57% 04/2022 100  100  —  100  
Diligent Corporation~One stop L + 5.50%
(d)
 6.57% 04/2022 80  79  —  80  
Diligent Corporation
One stop L + 5.50%
(c)(d)
 6.50% 04/2022 39  38  —  39  
Diligent Corporation~One stop L + 5.50%
(d)
 6.57% 04/2022 35  35  —  35  
Diligent Corporation
One stop L + 5.50% 
N/A(6)
 04/2022 —  19  —  —  
Episerver, Inc.!~(8)(9)
One stop E + 6.00%
(c)(d)
 6.00% 10/2024 20,593  20,923  0.8  19,774  
Episerver, Inc.#~
One stop L + 5.75%
(c)(d)
 6.75% 10/2024 12,216  12,416  0.5  11,850  
Episerver, Inc. (5)
One stop L + 5.75% 
N/A(6)
 10/2024 —  (2) —  (12) 
ES Acquisition LLC
One stop L + 5.00%
(c)
 6.00% 11/2025 663  651  —  655  
ES Acquisition, LLC
Senior loan L + 5.50%
(c)
 6.50% 11/2025 90  87  —  91  
ES Acquisition LLC
One stop L + 5.00%
(c)
 6.04% 11/2025 58  57  —  57  
ES Acquisition, LLC
One stop L + 5.00%
(b)
 6.22% 11/2025 47  46  —  46  
ES Acquisition LLC
One stop L + 5.00%
(d)
 6.07% 11/2025 36  36  —  36  
ES Acquisition LLC(5)
One stop L + 5.00% 
N/A(6)
 11/2025 —  (1) —  (2) 
Gamma Technologies, LLC^*#!
One stop L + 4.75%
(a)
 5.75% 06/2024 47,092  47,433  2.0  46,620  
Gamma Technologies, LLC(5)
One stop L + 4.75% 
N/A(6)
 06/2024 —  (1) —  (2) 
Red Dawn SEI Buyer, Inc.+
Senior loan L + 4.25%
(c)
 5.32% 11/2025 754  745  —  724  
Red Dawn SEI Buyer, Inc.
Senior loan L + 4.25%
(a)
 5.25% 11/2025 111  110  —  107  
Red Dawn SEI Buyer, Inc.(5)
Senior loan L + 4.25% 
N/A(6)
 11/2025 —  (1) —  (5) 
Silver Peak Systems, Inc. !
One stop L + 7.00%
(a)
 9.00% 04/2024 5,998  6,015  0.3  6,063  
Silver Peak Systems, Inc.
One stop L + 7.00% 
N/A(6)
 04/2024 —  —  —  2  
Sovos Compliance*+
One stop L + 4.75%
(a)
 5.75% 04/2024 19,614  20,194  0.8  19,614  
Sovos Compliance!
Second lien N/A 12.00% PIK 04/2025 9,675  9,927  0.4  9,675  
Sovos Compliance*#
One stop L + 4.75%
(a)
 5.75% 04/2024 1,903  1,960  0.1  1,903  
Sovos Compliance
Second lien N/A 12.00% PIK 04/2025 1,308  1,349  0.1  1,308  
Sovos Compliance*#
One stop L + 4.75%
(a)
 5.75% 04/2024 768  791  —  768  
Sovos Compliance
One stop L + 4.75%
(a)
 5.75% 04/2024 198  196  —  198  
Sovos Compliance
One stop L + 4.75%
(a)
 5.75% 04/2024 85  83  —  85  
Watchfire Enterprises, Inc.
Second lien L + 8.00%
(c)
 9.06% 10/2021 9,435  9,394  0.4  9,435  
243,030  246,850  10.2  240,868  
See Notes to Consolidated Financial Statements.
18
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Finance
Institutional Shareholder Services*!
Senior loan L + 4.50%
(d)
 5.57% 03/2026 $18,823  $19,226  0.8  %$18,446  
Institutional Shareholder Services
Senior loan L + 4.50%
(c)(d)
 5.32% 03/2024 150  147  —  142  
18,973  19,373  0.8  18,588  
Grocery
Teasdale Quality Foods, Inc.
Senior loan L + 5.25%
(a)
 6.25% 04/2021 3,812  3,688  0.2  3,660  
Teasdale Quality Foods, Inc.
Senior loan L + 5.25%
(a)
 6.25% 04/2021 3,082  2,982  0.1  2,960  
Teasdale Quality Foods, Inc.
Senior loan L + 5.25%
(a)
 6.25% 04/2021 506  490  —  486  
Teasdale Quality Foods, Inc.
Senior loan L + 5.25%
(a)
 6.25% 04/2021 378  367  —  362  
Teasdale Quality Foods, Inc.+
Senior loan L + 5.25%
(a)
 6.25% 04/2021 256  255  —  246  
Teasdale Quality Foods, Inc.Senior loan L + 5.25%
(a)
 6.25% 04/2021 189  182  —  180  
8,223  7,964  0.3  7,894  
Healthcare, Education and Childcare
ACP Ulysses Buyer, Inc.+!
Senior loan L + 5.00%
(d)
 6.07% 02/2026 13,244  13,118  0.6  13,244  
Active Day, Inc.#
One stop L + 6.50%
(c)(d)
 7.57% 12/2021 24,632  24,861  0.9  20,936  
Active Day, Inc.^#
One stop L + 6.50%
(c)(d)
 7.57% 12/2021 1,901  1,921  0.1  1,616  
Active Day, Inc.*#
One stop L + 6.50%
(c)(d)
 7.57% 12/2021 1,225  1,239  0.1  1,041  
Active Day, Inc.
One stop L + 6.50%
(c)(d)
 7.57% 12/2021 976  1,001  —  829  
Active Day, Inc.
One stop L + 6.50%
(d)
 7.57% 12/2021 861  856  —  732  
Active Day, Inc.*#
One stop L + 6.50%
(c)(d)
 7.57% 12/2021 846  856  —  720  
Active Day, Inc.
One stop L + 6.50%
(d)
 7.57% 44531 102  102  —  86  
Active Day, Inc.
One stop L + 6.50%
(d)
 
N/A(6)
 12/2021 —  —  —  —  
Acuity Eyecare Holdings, LLC
One stop L + 8.25%
(c)
 7.25% cash/2.00% PIK 03/2024 7,131  7,166  0.3  6,989  
Acuity Eyecare Holdings, LLC#
One stop L + 8.25%
(c)
 7.25% cash/2.00% PIK 03/2024 5,990  6,064  0.3  5,871  
Acuity Eyecare Holdings, LLC~
One stop L + 8.25%
(c)
 7.25% cash/2.00% PIK 03/2024 5,602  5,715  0.2  5,489  
Acuity Eyecare Holdings, LLC^~
One stop L + 6.25%
(c)
 7.25% 03/2024 3,268  3,377  0.1  3,202  
Acuity Eyecare Holdings, LLC
One stop L + 8.25%
(c)
 7.25% cash/2.00% PIK 03/2024 791  815  —  775  
Acuity Eyecare Holdings, LLC
One stop L + 8.25%
(c)
 7.25% cash/2.00% PIK 03/2024 197  188  —  189  
Acuity Eyecare Holdings, LLC
One stop L + 8.25%
(c)
 7.25% cash/2.00% PIK 03/2024 149  148  —  147  
ADCS Clinics Intermediate Holdings, LLC*#!
One stop L + 5.75%
(d)
 6.82% 05/2022 41,983  42,460  1.7  40,722  
ADCS Clinics Intermediate Holdings, LLC*#
One stop L + 5.75%
(d)
 6.82% 05/2022 210  213  —  204  
ADCS Clinics Intermediate Holdings, LLCOne stop L + 5.75%
(d)
 6.75% 05/2022 200  199  —  194  
ADCS Clinics Intermediate Holdings, LLC*
One stop L + 5.75%
(d)
 6.82% 05/2022 162  165  —  158  
ADCS Clinics Intermediate Holdings, LLC*#
One stop L + 5.75%
(d)
 6.82% 05/2022 62  63  —  60  
Advanced Pain Management Holdings, Inc.(7)
Senior loan L + 5.00%
(c)
 6.25% 07/2020 11,433  6,860  0.1  1,770  
Advanced Pain Management Holdings, Inc.(7)
Senior loan L + 8.50%
(c)
 9.75% 07/2020 4,082  7  —  —  
Advanced Pain Management Holdings, Inc.(7)
Senior loan L + 5.00%
(c)
 6.25% 07/2020 940  569  —  154  
Advanced Pain Management Holdings, Inc.(7)
Senior loan L + 5.00%
(c)
 6.25% 07/2020 782  469  —  121  
Agilitas USA, Inc.*#
One stop L + 5.50%
(c)
 6.95% 04/2022 10,127  10,161  0.4  9,621  
Agilitas USA, Inc.One stop L + 5.50%
(c)
 6.95% 04/2022 100  100  —  96  
Apothecary Products, LLC+
Senior loan L + 4.50%
(c)
 6.28% 07/2023 2,904  3,018  0.1  2,788  
Apothecary Products, LLCSenior loan L + 4.50%
(c)
 5.50% 07/2023 208  208  —  177  
Aspen Medical Products, LLC+~
One stop L + 5.25%
(c)
 6.45% 06/2025 4,543  4,615  0.2  4,316  
Aspen Medical Products, LLCOne stop L + 5.25%
(c)
 6.25% 06/2025 17  16  —  16  
See Notes to Consolidated Financial Statements.
19
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
Belmont Instrument, LLC+
Senior loan L + 4.75%
(d)
 5.82% 12/2023 $5,270  $5,223  0.2  %$5,217  
BIO18 Borrower, LLC!
One stop L + 5.25%
(c)
 6.25% 11/2024 11,103  11,141  0.5  11,103  
BIO18 Borrower, LLC*#
One stop L + 5.25%
(c)
 6.25% 11/2024 3,973  3,937  0.2  3,974  
BIO18 Borrower, LLCOne stop L + 5.25%
(c)
 6.25% 11/2024 210  210  —  210  
BIO18 Borrower, LLC(5)
One stop L + 5.25% 
N/A(6)
 11/2024 —  (1) —  —  
BIOVT, LLC^*#
One stop L + 5.75%
(a)
 6.75% 01/2021 34,218  34,481  1.5  34,218  
BIOVT, LLC#~
One stop L + 5.75%
(a)
 6.75% 01/2021 2,079  2,113  0.1  2,079  
BIOVT, LLC*
One stop L + 5.75%
(a)
 6.75% 01/2021 1,951  1,984  0.1  1,951  
BIOVT, LLC
One stop L + 5.75%
(a)
 6.75% 01/2021 120  120  —  120  
BIOVT, LLC
One stop L + 5.75% 
N/A(6)
 01/2021 —  —  —  —  
Blades Buyer, Inc.+~
Senior loan L + 4.50%
(b)(c)
 5.50% 08/2025 3,829  3,849  0.2  3,829  
Blades Buyer, Inc.
Senior loan L + 4.50%
(d)
 5.50% 08/2025 978  972  0.1  978  
Blades Buyer, Inc.
Senior loan L + 4.50%
(a)
 5.50% 08/2025 46  44  —  46  
CMI Parent Inc.+~
Senior loan L + 4.25%
(c)
 5.25% 08/2025 6,650  6,783  0.3  6,317  
CMI Parent Inc.(5)
Senior loan L + 4.25% 
N/A(6)
 08/2025 —  (2) —  (16) 
CRH Healthcare Purchaser, Inc.+~
Senior loan L + 4.50%
(c)
 4.81% 12/2024 13,079  13,248  0.6  13,079  
CRH Healthcare Purchaser, Inc.(5)
Senior loan L + 4.50% 
N/A(6)
 12/2024 —  (1) —  —  
CRH Healthcare Purchaser, Inc.(5)
Senior loan L + 4.50% 
N/A(6)
 12/2024 —  (2) —  —  
DCA Investment Holding, LLC^*#+
One stop L + 5.25%
(c)
 6.32% 07/2021 31,490  31,763  1.3  29,285  
DCA Investment Holding, LLC^*#+!~
One stop L + 5.25%
(d)
 6.32% 07/2021 27,283  27,619  1.1  25,372  
DCA Investment Holding, LLC*#
One stop L + 5.25%
(c)
 6.32% 07/2021 8,340  8,483  0.3  7,756  
DCA Investment Holding, LLC~
One stop L + 5.25%
(c)
 6.32% 07/2021 4,044  4,141  0.2  3,761  
DCA Investment Holding, LLC#
One stop L + 5.25%
(c)
 6.32% 07/2021 3,678  3,767  0.2  3,420  
DCA Investment Holding, LLC
One stop L + 5.25%
(c)
 6.37% 07/2021 2,737  2,734  0.1  2,541  
DCA Investment Holding, LLC*#
One stop L + 5.25%
(c)
 6.32% 07/2021 2,518  2,579  0.1  2,342  
DCA Investment Holding, LLC#
One stop L + 5.25%
(d)
 6.32% 07/2021 1,253  1,269  0.1  1,166  
DCA Investment Holding, LLC*~
One stop L + 5.25%
(c)
 6.32% 07/2021 298  301  —  276  
DCA Investment Holding, LLC*~
One stop L + 5.25%
(c)
 6.32% 07/2021 92  94  —  86  
Deca Dental Management LLC^*#
One stop L + 6.00%
(c)
 7.00% 12/2021 11,231  11,447  0.4  10,332  
Deca Dental Management LLC#~
One stop L + 6.00%
(c)
 7.00% 12/2021 1,374  1,401  0.1  1,265  
Deca Dental Management LLC+~
One stop L + 6.00%
(c)
 7.00% 12/2021 991  1,011  —  912  
Deca Dental Management LLC
One stop L + 6.00%
(c)
 7.00% 12/2021 735  755  —  677  
Deca Dental Management LLC
One stop L + 6.00%
(c)
 7.00% 12/2021 100  100  —  92  
Deca Dental Management LLC
One stop L + 6.00% 
N/A(6)
 12/2021 —  —  —  —  
Elite Dental Partners LLC*#(7)
One stop L + 5.25%
(d)
 6.32% 06/2023 14,162  14,037  0.4  10,020  
Elite Dental Partners LLC(7)
One stop L + 5.25%
(d)
 6.32% 06/2023 1,878  1,865  0.1  1,328  
Elite Dental Partners LLC#(7)
One stop L + 5.25%
(d)
 6.32% 06/2023 1,760  1,748  0.1  1,245  
Elite Dental Partners LLC+~(7)
One stop L + 5.25%
(d)
 6.32% 06/2023 1,678  1,667  0.1  1,188  
Elite Dental Partners LLC#~(7)
One stop L + 5.25%
(d)
 6.32% 06/2023 1,609  1,599  0.1  1,138  
Elite Dental Partners LLC(7)
One stop L + 5.25%
(c)(d)
 6.32% 06/2023 200  199  —  142  
Elite Dental Partners LLC(7)
One stop L + 5.25%
(c)
 6.25% 06/2023 19  19  —  25  
ERG Buyer, LLC*#
One stop L + 5.50%
(c)
 6.50% 05/2024 19,182  19,130  0.7  15,346  
ERG Buyer, LLC
One stop P + 4.50%
(f)
 7.75% 05/2024 300  295  —  240  
See Notes to Consolidated Financial Statements.
20
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
eSolutions, Inc.^*#+!~
One stop L + 6.50%
(c)
 7.50% 03/2022 $73,662  $74,467  3.1  %$73,662  
eSolutions, Inc.
One stop L + 6.50%
(a)
 7.50% 03/2022 150  150  —  150  
Excelligence Learning Corporation^#
One stop L + 7.00%
(b)(c)
 8.02% 04/2023 10,229  9,945  0.3  7,672  
Eyecare Services Partners Holdings LLC+
One stop L + 6.25%
(c)
 7.25% 05/2023 18,276  18,375  0.7  17,362  
Eyecare Services Partners Holdings LLC*
One stop L + 6.25%
(c)
 7.25% 05/2023 8,015  8,154  0.3  7,615  
Eyecare Services Partners Holdings LLC*#
One stop L + 6.25%
(c)
 7.25% 05/2023 7,021  7,149  0.3  6,670  
Eyecare Services Partners Holdings LLC
One stop L + 6.25%
(c)
 7.25% 05/2023 5,166  5,189  0.2  4,907  
Eyecare Services Partners Holdings LLC*+
One stop L + 6.25%
(c)
 7.25% 05/2023 2,398  2,440  0.1  2,277  
Eyecare Services Partners Holdings LLC*
One stop L + 6.25%
(c)
 7.25% 05/2023 1,539  1,567  0.1  1,462  
Eyecare Services Partners Holdings LLC*#
One stop L + 6.25%
(c)
 7.25% 05/2023 1,137  1,158  0.1  1,081  
Eyecare Services Partners Holdings LLC*#
One stop L + 6.25%
(c)
 7.25% 05/2023 1,002  1,020  —  952  
Eyecare Services Partners Holdings LLC*+
One stop L + 6.25%
(c)
 7.25% 05/2023 647  656  —  615  
Eyecare Services Partners Holdings LLC
One stop L + 6.25%
(b)(c)
 7.13% 05/2023 400  398  —  380  
FYI Optical Acquisitions, Inc. & FYI USA, Inc.~(8)(9)(11)
One stop L + 4.50%
(l)
 5.69% 03/2027 11,861  11,748  0.4  10,176  
FYI Optical Acquisitions, Inc. & FYI USA, Inc.(8)(9)(14)
One stop L + 4.50%
(l)
 5.07% 03/2027 81  78  —  60  
FYI Optical Acquisitions, Inc. & FYI USA, Inc.(5)(8)(14)
One stop L + 4.50% 
N/A(6)
 03/2027 —  (1) —  (8) 
G & H Wire Company, Inc.^#
One stop L + 5.50%
(a)
 6.50% 09/2023 11,179  11,178  0.4  10,283  
G & H Wire Company, Inc.
One stop L + 5.50%
(c)
 6.56% 09/2022 140  140  —  128  
Immucor, Inc.+
Senior loan L + 5.00%
(c)
 6.00% 06/2021 3,567  3,611  0.2  3,460  
Joerns Healthcare, LLC^*
One stop L + 6.00%
(c)
 7.00% 08/2024 1,873  1,823  0.1  1,797  
Joerns Healthcare, LLC^*
One stop L + 6.00%
(c)
 7.00% 08/2024 1,800  1,770  0.1  1,728  
Katena Holdings, Inc.^#
One stop L + 6.00%
(c)
 7.07% 06/2021 12,763  12,855  0.5  12,252  
Katena Holdings, Inc.^#
One stop L + 6.00%
(c)
 7.07% 06/2021 1,247  1,256  0.1  1,197  
Katena Holdings, Inc.+
One stop L + 6.00%
(c)
 7.07% 06/2021 932  926  —  895  
Katena Holdings, Inc.#
One stop L + 6.00%
(c)
 7.07% 06/2021 854  859  —  820  
Katena Holdings, Inc.
One stop L + 6.00%
(c)
 7.00% 06/2021 200  201  —  192  
Krueger-Gilbert Health Physics, LLC!~
Senior loan L + 5.25%
(c)
 6.25% 05/2025 2,365  2,352  0.1  2,294  
Krueger-Gilbert Health Physics, LLC!
Senior loan L + 5.25%
(c)
 6.25% 05/2025 1,116  1,157  0.1  1,083  
Krueger-Gilbert Health Physics, LLC
Senior loan L + 5.25%
(c)
 6.25% 05/2025 419  417  —  406  
Krueger-Gilbert Health Physics, LLC
Senior loan L + 5.25%
(c)
 6.25% 05/2025 50  50  —  48  
Lombart Brothers, Inc.^*#~
One stop L + 6.25%
(c)
 7.25% 04/2023 29,027  29,375  1.2  27,577  
Lombart Brothers, Inc.^#(8)(9)
One stop L + 6.25%
(c)
 7.25% 04/2023 3,125  3,163  0.1  2,969  
Lombart Brothers, Inc.
One stop L + 6.25%
(a)
 7.25% 04/2023 280  280  —  266  
Lombart Brothers, Inc.(8)(9)
One stop L + 6.25%
(a)
 7.25% 04/2023 50  49  —  46  
MD Now Holdings, Inc.+!
One stop L + 5.00%
(d)
 6.07% 08/2024 14,580  14,745  0.6  13,997  
MD Now Holdings, Inc.
One stop L + 5.00%
(d)
 6.07% 08/2024 622  621  —  536  
MD Now Holdings, Inc.
One stop L + 5.00%
(c)
 6.00% 08/2024 300  299  —  288  
MWD Management, LLC & MWD Services, Inc.#+
One stop L + 5.25%
(c)
 6.25% 06/2023 7,034  7,023  0.3  6,612  
MWD Management, LLC & MWD Services, Inc.^#
One stop L + 5.25%
(c)
 6.25% 06/2023 4,529  4,614  0.2  4,257  
MWD Management, LLC & MWD Services, Inc.(5)
One stop L + 5.25% 
N/A(6)
 06/2022 —  (1) —  (10) 
Oliver Street Dermatology Holdings, LLC#(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 19,296  17,701  0.4  10,257  
Oliver Street Dermatology Holdings, LLC*#(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 2,239  1,920  0.1  1,190  
See Notes to Consolidated Financial Statements.
21
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
Oliver Street Dermatology Holdings, LLC(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 $2,122  $1,937  0.1  %$1,128  
Oliver Street Dermatology Holdings, LLC^(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 1,606  1,377  —  854  
Oliver Street Dermatology Holdings, LLC*(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 1,419  1,216  —  755  
Oliver Street Dermatology Holdings, LLC*(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 1,235  1,059  —  657  
Oliver Street Dermatology Holdings, LLC^(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 962  825  —  511  
Oliver Street Dermatology Holdings, LLC*(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 834  715  —  443  
Oliver Street Dermatology Holdings, LLC(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 514  441  —  273  
Oliver Street Dermatology Holdings, LLC(7)
One stop L + 6.25%
(c)(f)
 7.25% 05/2022 291  268  —  155  
Oliver Street Dermatology Holdings, LLC^#(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 98  89  —  52  
Oliver Street Dermatology Holdings, LLC*#(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 88  81  —  48  
Oliver Street Dermatology Holdings, LLC^#(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 70  63  —  36  
Oliver Street Dermatology Holdings, LLC^#(7)
One stop L + 6.25%
(c)
 7.25% 05/2022 64  59  —  34  
ONsite Mammography, LLC~
One stop L + 6.25%
(d)
 7.32% 11/2023 7,668  7,709  0.3  7,361  
ONsite Mammography, LLC
One stop L + 6.25%
(c)
 7.25% 11/2023 100  102  —  96  
ONsite Mammography, LLC
One stop L + 6.25%
(c)(d)
 7.29% 11/2023 29  28  —  28  
Pinnacle Treatment Centers, Inc.#
One stop L + 6.25%
(c)
 7.25% 01/2023 19,180  19,344  0.8  19,180  
Pinnacle Treatment Centers, Inc.*
One stop L + 6.25%
(c)
 7.25% 01/2023 7,813  7,747  0.3  7,813  
Pinnacle Treatment Centers, Inc.#
One stop L + 6.25%
(c)
 7.25% 01/2023 1,574  1,580  0.1  1,574  
Pinnacle Treatment Centers, Inc.+~
One stop L + 6.25%
(c)
 7.25% 01/2023 711  718  —  711  
Pinnacle Treatment Centers, Inc.
One stop L + 6.25%
(c)
 7.25% 01/2023 188  189  —  188  
Pinnacle Treatment Centers, Inc.^
One stop L + 6.25%
(c)
 7.25% 01/2023 108  108  —  108  
Pinnacle Treatment Centers, Inc.
One stop P + 5.00%
(c)(f)
 7.96% 01/2023 81  81  —  81  
Pinnacle Treatment Centers, Inc.(5)
One stop L + 6.25% 
N/A(6)
 01/2023 —  (1) —  —  
PPT Management Holdings, LLC+
One stop L + 6.75%
(c)(d)
 7.32% cash/0.75% PIK 12/2022 25,010  23,678  0.9  19,999  
PPT Management Holdings, LLC
One stop L + 6.75%
(c)(d)
 7.29% cash/0.75% PIK 12/2022 418  392  —  334  
PPT Management Holdings, LLC
One stop L + 6.75%
(c)(d)
 7.32% cash/0.75% PIK 12/2022 304  291  —  242  
PPT Management Holdings, LLC
One stop L + 6.75%
(c)(d)
 7.32% cash/0.75% PIK 12/2022 180  172  —  144  
PPT Management Holdings, LLC
One stop L + 6.75%
(c)(d)
 7.32% cash/0.75% PIK 12/2022 88  79  —  70  
Pyramid Healthcare, Inc.*+
One stop L + 6.50%
(c)
 7.50% 08/2020 15,021  15,020  0.6  15,021  
Pyramid Healthcare, Inc.
One stop L + 6.50%
(c)
 7.61% 08/2020 462  462  —  462  
Pyramid Healthcare, Inc.
One stop L + 6.50%
(c)
 7.50% 08/2020 334  336  —  334  
Pyramid Healthcare, Inc.
One stop L + 6.50%
(c)
 7.50% 08/2020 292  292  —  292  
Pyramid Healthcare, Inc.
One stop L + 6.50%
(c)
 7.50% 08/2020 112  112  —  112  
Pyramid Healthcare, Inc.
One stop L + 6.50%
(c)
 7.66% 08/2020 45  45  —  45  
Pyramid Healthcare, Inc.
One stop L + 6.50% 
N/A(6)
 08/2020 —  —  —  —  
Riverchase MSO, LLC*#
Senior loan L + 5.75%
(c)
 6.75% 10/2022 9,645  9,781  0.4  8,970  
Riverchase MSO, LLC
Senior loan L + 5.75%
(a)
 6.75% 10/2022 130  130  —  120  
RXH Buyer Corporation^*#!
One stop L + 5.75%
(c)
 6.75% 09/2021 27,597  27,828  1.2  27,597  
RXH Buyer Corporation*#
One stop L + 5.75%
(c)
 6.75% 09/2021 3,124  3,150  0.1  3,124  
RXH Buyer Corporation
One stop L + 5.75%
(c)
 6.75% 09/2021 100  101  —  100  
SLMP, LLC^#
One stop L + 6.00%
(d)
 7.07% 05/2023 11,764  11,849  0.5  11,764  
SLMP, LLC^#
One stop L + 6.00%
(d)
 7.07% 05/2023 5,664  5,861  0.2  5,664  
SLMP, LLC
One stop L + 6.00%
(d)
 7.07% 05/2023 1,473  1,473  0.1  1,473  
See Notes to Consolidated Financial Statements.
22
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
SLMP, LLC
Subordinated debt N/A 7.50% PIK 05/2027 $237  $242  —  %$237  
SLMP, LLC
One stop P + 5.00%
(f)
 8.25% 05/2023 100  99  —  100  
Summit Behavioral Healthcare, LLC^#
Senior loan L + 4.75%
(c)
 5.75% 10/2023 20,650  20,406  0.8  18,998  
Summit Behavioral Healthcare, LLC
Senior loan L + 4.75%
(c)
 5.75% 10/2023 431  433  —  396  
Summit Behavioral Healthcare, LLC
Senior loan L + 4.75%
(b)(c)
 5.75% 10/2023 300  296  —  276  
WHCG Management, LLC*#
Senior loan L + 4.75%
(c)
 5.82% 03/2023 16,109  16,213  0.7  15,465  
WHCG Management, LLC
Senior loan L + 4.75%
(c)
 5.82% 03/2023 5,641  5,600  0.2  5,415  
WHCG Management, LLC
Senior loan L + 4.75%
(c)
 5.82% 03/2023 1,989  1,981  0.1  1,909  
WHCG Management, LLC
Senior loan L + 4.75%
(c)
 5.82% 03/2023 339  336  —  325  
WHCG Management, LLC
Senior loan L + 4.75%
(a)(c)
 5.82% 03/2023 196  198  —  188  
820,807  812,140  31.8  746,186  
Home and Office Furnishings, Housewares, and Durable Consumer
1A Smart Start LLC+~
Senior loan L + 4.50%
(c)
 5.57% 02/2022 6,213  6,228  0.2  6,089  
CST Buyer Company^+~
One stop L + 5.25%
(d)
 6.32% 10/2025 10,946  10,847  0.5  10,947  
CST Buyer Company
One stop L + 5.25%
(d)
 6.32% 10/2025 38  38  —  38  
Plano Molding Company, LLC^+
One stop L + 7.50%
(c)
 8.50% 05/2021 14,637  14,613  0.5  11,709  
31,834  31,726  1.2  28,783  
Hotels, Motels, Inns, and Gaming
Davidson Hotel Company, LLC+
One stop L + 5.25%
(a)
 6.25% 07/2024 8,480  8,425  0.3  5,936  
Davidson Hotel Company, LLC
One stop L + 5.25%
(a)
 6.25% 07/2024 1,072  1,072  —  751  
Davidson Hotel Company, LLC
One stop L + 5.25%
(a)
 6.25% 07/2024 100  100  —  70  
Davidson Hotel Company, LLC(5)
One stop L + 5.25% 
N/A(6)
 07/2024 —  (11) —  —  
9,652  9,586  0.3  6,757  
Insurance
Captive Resources Midco, LLC^*#+~
One stop L + 6.00%
(a)
 7.00% 05/2025 56,432  56,567  2.4  56,432  
Captive Resources Midco, LLC
One stop L + 6.00%
(a)
 7.00% 05/2025 1,727  1,707  0.1  1,727  
Captive Resources Midco, LLC#
One stop L + 6.00%
(a)
 7.00% 05/2025 1,443  1,430  0.1  1,443  
Integrity Marketing Acquisition, LLC+~
Senior loan L + 5.75%
(c)
 6.75% 08/2025 2,477  2,478  0.1  2,477  
Integrity Marketing Acquisition, LLC
Senior loan L + 5.75%
(c)(d)
 6.86% 08/2025 791  787  —  791  
Integrity Marketing Acquisition, LLC
Senior loan L + 5.75%
(c)
 6.75% 08/2025 479  476  —  479  
Integrity Marketing Acquisition, LLC
Senior loan L + 5.75%
(c)(d)
 6.75% 08/2025 65  63  —  65  
Integrity Marketing Acquisition, LLC
Senior loan L + 5.75% 
N/A(6)
 08/2025 —  —  —  —  
J.S. Held Holdings, LLC#+~
One stop L + 6.00%
(c)(f)
 7.04% 07/2025 4,698  4,687  0.2  4,698  
J.S. Held Holdings, LLC
One stop L + 6.00%
(c)
 7.00% 07/2025 72  66  —  72  
J.S. Held Holdings, LLC(5)
One stop L + 6.00% 
N/A(6)
 07/2025 —  (17) —  —  
Orchid Underwriters Agency, LLC+~
Senior loan L + 4.50%
(c)
 5.57% 12/2024 4,156  4,210  0.2  4,073  
Orchid Underwriters Agency, LLC
Senior loan L + 4.50% 
N/A(6)
 12/2024 —  —  —  —  
Orchid Underwriters Agency, LLC(5)
Senior loan L + 4.75% 
N/A(6)
 12/2024 —  (1) —  (19) 
RSC Acquisition, Inc.+~
One stop L + 5.50%
(c)
 6.80% 10/2026 25,796  25,287  1.1  25,796  
RSC Acquisition, Inc.
One stop L + 5.50%
(c)
 6.50% 10/2026 25  17  —  25  
RSC Acquisition, Inc.(5)
One stop L + 5.50% 
N/A(6)
 10/2026 —  (2) —  —  
98,161  97,755  4.2  98,059  
See Notes to Consolidated Financial Statements.
23
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Leisure, Amusement, Motion Pictures, Entertainment
CR Fitness Holdings, LLC+~
Senior loan L + 4.25%
(c)
 5.25% 07/2025 $2,004  $2,016  0.1  %$1,843  
CR Fitness Holdings, LLC
Senior loan L + 4.25%
(a)
 5.25% 07/2025 269  263  —  201  
CR Fitness Holdings, LLC
Senior loan L + 4.25%
(a)(c)
 5.25% 07/2025 74  74  —  68  
EOS Fitness Opco Holdings, LLC*#
One stop L + 4.75%
(c)
 5.75% 01/2025 8,697  8,817  0.4  8,001  
EOS Fitness Opco Holdings, LLC
One stop L + 4.75%
(c)
 5.75% 01/2025 916  927  —  842  
EOS Fitness Opco Holdings, LLC
One stop L + 4.75%
(c)
 5.75% 01/2025 120  120  —  110  
PADI Holdco, Inc.*#
One stop L + 5.75%
(c)
 6.75% 04/2024 21,852  22,069  0.8  18,574  
PADI Holdco, Inc.+~(8)(9)
One stop E + 5.75%
(g)
 5.75% 04/2024 20,728  21,048  0.7  17,001  
PADI Holdco, Inc.~
One stop L + 5.75%
(c)
 6.50% 04/2024 801  794  —  681  
PADI Holdco, Inc.
One stop L + 5.75%
(a)
 6.75% 04/2023 298  299  —  254  
PADI Holdco, Inc.
One stop L + 5.75%
(c)
 6.75% 04/2024 166  164  —  141  
Planet Fit Indy 10 LLC+
One stop L + 5.25%
(c)
 6.25% 07/2025 17,429  17,331  0.7  16,209  
Planet Fit Indy 10 LLC#
One stop L + 5.25%
(c)
 6.25% 07/2025 2,325  2,377  0.1  2,162  
Planet Fit Indy 10 LLC#
One stop L + 5.25%
(c)
 6.25% 07/2025 1,263  1,256  0.1  1,174  
Planet Fit Indy 10 LLC
One stop L + 5.25%
(c)
 6.25% 07/2025 200  200  —  186  
Self Esteem Brands, LLC^*#
Senior loan L + 4.25%
(d)
 5.32% 02/2022 45,841  46,257  1.9  43,549  
Self Esteem Brands, LLC
Senior loan P + 3.25%
(f)
 6.50% 02/2022 2,338  2,334  0.1  2,222  
Sunshine Sub, LLC#~
One stop L + 4.75%
(c)
 5.75% 05/2024 12,958  13,064  0.5  11,921  
Sunshine Sub, LLC#
One stop L + 4.75%
(c)
 5.75% 05/2024 5,669  5,865  0.2  5,215  
Sunshine Sub, LLCOne stop L + 4.75%
(c)
 5.75% 05/2024 20  19  —  4  
Teaching Company, The*#
One stop L + 4.75%
(c)(d)
 5.75% 07/2023 17,878  18,071  0.7  17,342  
Teaching Company, TheOne stop L + 4.75%
(c)(d)
 5.77% 07/2023 90  90  —  84  
Titan Fitness, LLC*#+
One stop L + 4.75%
(b)(c)
 5.75% 02/2025 30,394  30,860  1.2  27,962  
Titan Fitness, LLC
One stop L + 4.75%
(c)
 6.19% 02/2025 1,899  1,897  0.1  1,747  
Titan Fitness, LLC
One stop L + 4.75%
(c)
 6.00% 02/2025 474  472  —  434  
WBZ Investment LLC#
One stop L + 5.50%
(c)
 6.54% 09/2024 8,461  8,523  0.3  7,784  
WBZ Investment LLC
One stop L + 5.50%
(c)
 6.54% 09/2024 1,212  1,203  0.1  1,115  
WBZ Investment LLC
One stop L + 5.50%
(c)
 6.50% 09/2024 842  873  —  776  
WBZ Investment LLC
One stop L + 5.50%
(c)
 6.50% 09/2024 431  446  —  396  
WBZ Investment LLC
One stop L + 5.50%
(c)
 6.50% 09/2024 80  80  —  72  
205,729  207,809  8.0  188,070  
Oil and Gas
Drilling Info Holdings, Inc.*#+~
Senior loan L + 4.25%
(a)
 4.43% 07/2025 36,671  37,181  1.5  34,804  
Drilling Info Holdings, Inc.~Senior loan L + 4.50%
(a)
 4.68% 07/2025 17,385  16,936  0.7  16,690  
Drilling Info Holdings, Inc.(5)
Senior loan L + 4.25% 
N/A(6)
 07/2023 —  (2) —  (10) 
Drilling Info Holdings, Inc.(5)
Senior loan L + 4.25% 
N/A(6)
 07/2025 —  (6) —  (52) 
Drilling Info Holdings, Inc.(5)
Senior loan L + 4.50% 
N/A(6)
 07/2023 —  (3) —  (4) 
54,056  54,106  2.2  51,428  
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC#
One stop L + 5.50%
(c)(d)
 6.57% 11/2023 10,400  10,518  0.4  9,568  
Georgica Pine Clothiers, LLC*#
One stop L + 5.50%
(c)(d)
 6.59% 11/2023 6,520  6,599  0.3  5,999  
Georgica Pine Clothiers, LLC+
One stop L + 5.50%
(c)(d)
 6.57% 11/2023 1,009  1,000  —  928  
See Notes to Consolidated Financial Statements.
24
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Personal and Non Durable Consumer Products (Mfg. Only) - (continued)
Georgica Pine Clothiers, LLC^#
One stop L + 5.50%
(c)(d)
 6.57% 11/2023 $908  $920  —  %$835  
Georgica Pine Clothiers, LLC*#
One stop L + 5.50%
(c)(d)
 6.57% 11/2023 636  646  —  586  
Georgica Pine Clothiers, LLC
One stop L + 5.50%
(d)
 6.55% 11/2023 236  236  —  216  
IMPLUS Footwear, LLC+~
One stop L + 7.75%
(c)
 3.50% cash/5.25% PIK 04/2024 30,639  31,067  1.2  27,574  
IMPLUS Footwear, LLC+~
One stop L + 7.75%
(c)
 3.50% cash/5.25% PIK 04/2024 5,232  5,306  0.2  4,709  
IMPLUS Footwear, LLC*
One stop L + 7.75%
(c)
 3.50% cash/5.25% PIK 04/2024 754  779  —  679  
Orthotics Holdings, Inc.*#
One stop L + 6.00%
(e)
 7.00% 07/2020 11,676  11,676  0.5  10,742  
Orthotics Holdings, Inc.*#(8)(9)
One stop L + 6.00%
(e)
 7.00% 07/2020 1,914  1,914  0.1  1,761  
Orthotics Holdings, Inc.
One stop L + 6.00% 
N/A(6)
 07/2020 —  —  —  —  
WU Holdco, Inc. #+~
One stop L + 5.50%
(c)
 6.50% 03/2026 3,436  3,516  0.2  3,436  
WU Holdco, Inc. One stop L + 5.50%
(c)
 6.50% 03/2026 392  393  —  384  
WU Holdco, Inc.
One stop L + 5.50%
(c)
 5.80% 03/2025 40  40  —  38  
73,792  74,610  2.9  67,455  
Personal, Food and Miscellaneous Services
Blue River Pet Care, LLC#+
One stop L + 5.00%
(d)
 6.07% 07/2026 27,761  27,815  1.2  27,206  
Blue River Pet Care, LLC
One stop L + 5.00%
(a)
 5.18% 07/2026 1,268  1,174  0.1  1,056  
Blue River Pet Care, LLC
One stop L + 5.00%
(a)(d)
 5.85% 08/2025 275  271  —  267  
Captain D's, LLC^#
Senior loan L + 4.50%
(c)(d)
 5.50% 12/2023 14,257  14,303  0.6  13,971  
Captain D's, LLC
Senior loan L + 4.50%
(a)(c)
 5.25% 12/2023 120  121  —  118  
Encorevet Group LLC
Senior loan L + 5.00%
(c)
 6.00% 11/2024 250  248  —  245  
Encorevet Group LLC
Senior loan L + 5.00%
(c)
 6.00% 11/2024 112  112  —  110  
Encorevet Group LLC
Senior loan L + 5.00%
(c)
 6.00% 11/2024 58  57  —  57  
Encorevet Group LLC
Senior loan L + 5.00%
(c)
 6.00% 11/2024 10  10  —  10  
Encorevet Group LLC(5)
Senior loan L + 5.00% 
N/A(6)
 11/2024 —  —  —  (1) 
Encorevet Group LLC(5)
Senior loan L + 5.00% 
N/A(6)
 11/2024 —  (1) —  (1) 
Imperial Optical Midco Inc.~
One stop L + 6.25%
(c)
 7.25% 08/2023 3,622  3,671  0.2  3,514  
Imperial Optical Midco Inc.*
One stop L + 6.25%
(c)
 7.25% 08/2023 2,824  2,803  0.1  2,740  
Imperial Optical Midco Inc.#
One stop L + 6.25%
(c)
 7.25% 08/2023 1,920  1,970  0.1  1,862  
Imperial Optical Midco Inc.#
One stop L + 6.25%
(c)
 7.25% 08/2023 1,250  1,282  0.1  1,213  
Imperial Optical Midco Inc.*One stop L + 6.25%
(c)
 7.25% 08/2023 1,138  1,168  0.1  1,104  
Imperial Optical Midco Inc.
One stop L + 6.25%
(c)
 7.25% 08/2023 330  328  —  320  
Imperial Optical Midco Inc.
One stop L + 6.25%
(c)
 7.25% 08/2023 240  238  —  233  
Imperial Optical Midco Inc.
One stop L + 6.25%
(c)
 7.25% 08/2023 190  189  —  184  
Imperial Optical Midco Inc.
One stop L + 6.25%
(c)
 7.25% 08/2023 134  133  —  130  
Imperial Optical Midco Inc.
One stop L + 6.25%
(c)
 7.25% 08/2023 130  129  —  126  
Imperial Optical Midco Inc.
One stop L + 6.25%
(c)
 7.25% 08/2023 96  96  —  94  
Imperial Optical Midco Inc.
One stop L + 6.25%
(c)
 7.25% 08/2023 83  82  —  81  
Imperial Optical Midco Inc.
One stop L + 6.25%
(c)
 7.25% 08/2023 36  35  —  35  
Imperial Optical Midco Inc.(5)
One stop L + 6.25% 
N/A(6)
 08/2023 —  —  —  (3) 
Imperial Optical Midco Inc.(5)
One stop L + 6.25% 
N/A(6)
 08/2023 —  (5) —  —  
Midwest Veterinary Partners, LLC+
One stop L + 6.00%
(c)
 7.07% 07/2025 4,285  4,216  0.2  4,285  
Midwest Veterinary Partners, LLC#
One stop L + 6.00%
(c)
 7.07% 07/2025 1,028  1,019  —  1,028  
Midwest Veterinary Partners, LLC
One stop L + 6.00%
(d)
 7.00% 07/2025 814  779  —  814  
See Notes to Consolidated Financial Statements.
25
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Personal, Food and Miscellaneous Services - (continued)
Midwest Veterinary Partners, LLC
One stop L + 6.00%
(a)(c)
 7.00% 07/2025 $148  $148  —  %$148  
NVA Holdings, Inc.~
Senior loan L + 3.50%
(a)
 3.69% 02/2026 2,951  2,923  0.1  2,833  
PPV Intermediate Holdings II, LLC
One stop L + 7.00%
(a)(c)(d)
 8.51% 05/2023 4,933  4,933  0.2  4,871  
PPV Intermediate Holdings II, LLC
One stop L + 7.00%
(d)(f)
 8.67% 05/2023 90  90  —  88  
PPV Intermediate Holdings II, LLC
One stop N/A 7.90% PIK 05/2023 24  25  —  24  
PPV Intermediate Holdings II, LLC(5)
One stop L + 7.00% 
N/A(6)
 05/2023 —  (20) —  (26) 
Ruby Slipper Cafe LLC, The*
One stop L + 7.50%
(c)
 8.50% 01/2023 2,048  2,041  0.1  1,946  
Ruby Slipper Cafe LLC, The
One stop L + 7.50%
(b)(c)
 8.50% 01/2023 415  429  —  394  
Ruby Slipper Cafe LLC, The
One stop L + 7.50%
(c)
 8.50% 01/2023 30  30  —  29  
Southern Veterinary Partners, LLC*#~
One stop L + 6.00%
(c)
 7.07% 05/2025 26,660  27,617  1.1  26,660  
Southern Veterinary Partners, LLC
One stop L + 6.00%
(c)
 7.07% 05/2025 210  209  —  210  
Southern Veterinary Partners, LLC
One stop L + 6.00%
(c)
 7.07% 05/2025 192  190  —  192  
Southern Veterinary Partners, LLC
One stop L + 6.00%
(c)
 7.00% 05/2025 181  179  —  181  
Southern Veterinary Partners, LLC
One stop L + 6.00%
(c)(d)
 7.00% 05/2025 163  143  —  163  
Southern Veterinary Partners, LLC
One stop L + 6.00%
(c)
 7.00% 05/2025 142  140  —  142  
Southern Veterinary Partners, LLC
One stop L + 6.00%
(c)
 7.07% 05/2025 126  125  —  126  
Southern Veterinary Partners, LLC#
One stop L + 6.00%
(c)
 7.07% 05/2025 121  120  —  121  
Southern Veterinary Partners, LLC#
One stop L + 6.00%
(c)
 7.07% 05/2025 119  118  —  119  
Southern Veterinary Partners, LLC#
One stop L + 6.00%
(c)
 7.07% 05/2025 113  112  —  113  
Southern Veterinary Partners, LLC#
One stop L + 6.00%
(c)
 7.07% 05/2025 111  110  —  111  
Southern Veterinary Partners, LLC
One stop L + 6.00%
(d)
 7.00% 05/2025 4  2  —  4  
Southern Veterinary Partners, LLC(5)
One stop L + 6.00% 
N/A(6)
 05/2023 —  (1) —  —  
Veterinary Specialists of North America, LLC*#!
Senior loan L + 4.50%
(a)
 4.68% 04/2025 41,758  43,251  1.8  41,758  
Veterinary Specialists of North America, LLCSenior loan L + 4.50%
(a)
 4.68% 04/2025 10,288  10,283  0.4  10,288  
Veterinary Specialists of North America, LLC#
Senior loan L + 4.50%
(a)
 4.68% 04/2025 2,878  2,856  0.1  2,878  
Veterinary Specialists of North America, LLC*
Senior loan L + 4.50%
(a)
 4.68% 04/2025 1,449  1,502  0.1  1,449  
Veterinary Specialists of North America, LLC
Senior loan L + 4.50%
(a)
 4.68% 04/2025 834  831  —  834  
Wetzel's Pretzels, LLC*#
One stop L + 6.75%
(c)
 7.75% 09/2021 16,980  17,159  0.7  15,283  
Wetzel's Pretzels, LLC
One stop L + 6.75%
(c)
 7.75% 09/2021 100  101  —  90  
175,299  177,889  7.3  171,827  
Printing and Publishing
Brandmuscle, Inc.
Senior loan L + 4.75%
(d)
 5.82% 12/2021 8,115  8,110  0.3  7,459  
Brandmuscle, Inc.^#
Senior loan L + 5.00%
(c)
 6.07% 12/2021 1,130  1,145  —  1,046  
Brandmuscle, Inc.(5)
Senior loan L + 4.75% 
N/A(6)
 12/2021 —  —  —  (6) 
Messenger, LLC+~
One stop L + 6.00%
(c)(f)
 7.06% 08/2023 9,076  9,167  0.4  8,441  
Messenger, LLCOne stop P + 5.00%
(f)
 8.25% 08/2023 50  50  —  46  
Messenger, LLC(5)
One stop L + 6.00% 
N/A(6)
 08/2023 —  (2) —  —  
18,371  18,470  0.7  16,986  
Retail Stores
2nd Ave. LLCOne stop L + 5.50%
(d)
 7.28% 09/2025 5,930  5,839  0.2  5,337  
2nd Ave. LLC
One stop L + 5.50%
(c)(d)
 6.26% 09/2025 50  50  —  45  
Batteries Plus Holding Corporation#
One stop L + 6.75%
(a)
 7.75% 07/2022 21,921  22,184  0.9  21,921  
Batteries Plus Holding Corporation
One stop P + 5.75%
(f)
 9.00% 07/2022 134  133  —  134  
See Notes to Consolidated Financial Statements.
26
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Retail Stores - (continued)
Boot Barn, Inc.#+~
Senior loanL + 4.50%
(c)
5.50%06/2023$16,776  $16,916  0.7  %$16,777  
Cycle Gear, Inc.^#+
One stop L + 5.00%
(c)
 6.00% 01/2024 23,893  24,003  1.0  23,415  
DTLR, Inc.^*#+
One stop L + 6.50%
(c)
 7.50% 08/2022 41,491  41,990  1.7  40,662  
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)
 7.25% 12/2021 9,321  9,143  0.3  7,922  
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)
 7.25% 12/2021 3,747  3,677  0.1  3,185  
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)
 7.25% 12/2021 1,928  1,893  0.1  1,639  
Elite Sportswear, L.P.Senior loan L + 6.25%
(a)(c)(d)
 7.39% 12/2021 1,150  1,129  0.1  972  
Elite Sportswear, L.P.*
Senior loan L + 6.25%
(c)
 7.25% 12/2021 639  630  —  544  
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)
 7.25% 12/2021 292  287  —  249  
Elite Sportswear, L.P.*Senior loan L + 6.25%
(c)
 7.25% 12/2021 280  275  —  238  
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)(d)
 7.71% 12/2021 40  39  —  34  
Feeders Supply Company, LLC#
One stop L + 5.75%
(c)
 6.75% 04/2021 8,590  8,670  0.4  8,590  
Feeders Supply Company, LLC
Subordinated debt N/A 12.50% cash/7.00% PIK 04/2021 150  152  —  150  
Feeders Supply Company, LLC
One stop L + 5.75% 
N/A(6)
 04/2021 —  —  —  —  
Jet Equipment & Tools Ltd.+~(8)(9)(12)
One stop L + 5.75%
(a)
 6.75% 11/2024 18,033  18,329  0.8  17,492  
Jet Equipment & Tools Ltd.*#(8)(12)
One stop L + 5.75%
(a)
 6.75% 11/2024 12,395  12,649  0.5  12,396  
Jet Equipment & Tools Ltd.#+(8)(12)
One stop L + 5.75%
(a)
 6.75% 11/2024 4,317  4,392  0.2  4,317  
Jet Equipment & Tools Ltd.~(8)(12)
One stop L + 5.75%
(a)
 6.75% 11/2024 1,585  1,572  0.1  1,585  
Jet Equipment & Tools Ltd.(8)(12)
One stop P + 4.75%
(f)
 8.00% 11/2024 20  20  —  20  
Jet Equipment & Tools Ltd.(5)(8)(9)(12)
One stop L + 5.75% 
N/A(6)
 11/2024 —  (1) —  —  
Mills Fleet Farm Group LLC^*#+!~
One stop L + 7.00%
(d)
 7.84% cash/0.75% PIK 10/2024 46,785  46,651  1.9  45,381  
Pet Holdings ULC^*#+!(8)(12)
One stop L + 5.50%
(c)
 6.93% 07/2022 46,760  47,687  1.9  44,422  
Pet Holdings ULC(8)(12)
One stop L + 5.50%
(c)
 6.93% 07/2022 300  299  —  286  
Pet Holdings ULC^*#+(8)(12)
One stop L + 5.50%
(c)
 6.93% 07/2022 242  243  —  228  
Pet Supplies Plus, LLC*+
Senior loan L + 4.50%
(c)
 5.64% 12/2024 14,217  14,465  0.6  13,933  
Pet Supplies Plus, LLC
Senior loan L + 4.50%
(c)
 5.50% 12/2023 224  223  —  218  
PetPeople Enterprises, LLC^#
One stop L + 5.75%
(c)
 6.82% 09/2023 5,366  5,420  0.2  5,044  
PetPeople Enterprises, LLC#
One stop L + 5.75%
(c)(d)
 6.90% 09/2023 1,822  1,849  0.1  1,712  
PetPeople Enterprises, LLC
One stop L + 5.75%
(c)(d)
 6.89% 09/2023 40  41  —  34  
Sola Franchise, LLC and Sola Salon Studios, LLC#
One stop L + 5.50%
(d)
 6.57% 10/2024 6,980  6,998  0.3  6,561  
Sola Franchise, LLC and Sola Salon Studios, LLC#
One stop L + 5.50%
(d)
 6.57% 10/2024 1,713  1,774  0.1  1,609  
Sola Franchise, LLC and Sola Salon Studios, LLC
One stop L + 5.50%
(c)(f)
 7.09% 10/2024 85  84  —  79  
Sola Franchise, LLC and Sola Salon Studios, LLC(5)
One stop L + 5.50% 
N/A(6)
 10/2024 —  (1) —  —  
Vermont Aus Pty Ltd!~(8)(9)(11)
One stop L + 5.25%
(d)
 5.84% 12/2024 2,199  2,220  0.1  2,156  
Vermont Aus Pty Ltd(8)(9)(11)
One stop L + 5.25%
(d)
 5.78% 12/2024 81  82  —  79  
299,496  302,006  12.3  289,366  
Telecommunications
NetMotion Wireless Holdings, Inc.^*#
One stop L + 5.75%
(c)
 6.75% 10/2021 11,031  11,161  0.5  11,031  
NetMotion Wireless Holdings, Inc.
One stop L + 5.75% 
N/A(6)
 10/2021 —  —  —  —  
11,031  11,161  0.5  11,031  
Textiles and Leather
SHO Holding I Corporation!~
Senior loan L + 5.00%
(c)
 6.00% 10/2022 4,035  4,025  0.2  3,631  
See Notes to Consolidated Financial Statements.
27
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Textiles and Leather - (continued)
SHO Holding I Corporation
Senior loanL + 4.00%
(a)
4.18%10/2021$96  $93  —  %$80  
SHO Holding I Corporation
Senior loan L + 4.00%
(a)
 4.19% 10/2022 50  49  —  50  
4,181  4,167  0.2  3,761  
Utilities
Arcos, LLC#~
One stop L + 5.25%
(c)
 6.25% 02/2021 13,849  13,985  0.6  13,849  
Arcos, LLC
One stop L + 5.25% 
N/A(6)
 02/2021 —  —  —  —  
13,849  13,985  0.6  13,849  
Total non-controlled/non-affiliate company debt investments$4,319,392  $4,341,299  $176.1  %$4,135,337  
Equity investments (15)(16)
Aerospace and Defense
NTS Technical Systems
Common Stock N/A N/A N/A 2  $1,506  —  %$290  
NTS Technical Systems
Preferred stock N/A N/A N/A —  256  —  415  
NTS Technical Systems
Preferred stock N/A N/A N/A —  128  —  235  
Whitcraft LLC
Common Stock N/A N/A N/A 11  2,285  0.2  3,458  
4,175  0.2  4,398  
Automobile
Grease Monkey International, LLC
LLC units N/A N/A N/A 803  1,304  0.1  2,007  
Polk Acquisition Corp.
LP interest N/A N/A N/A 5  314  —  88  
Quick Quack Car Wash Holdings, LLC
LLC units N/A N/A N/A —  508  —  402  
2,126  0.1  2,497  
Beverage, Food and Tobacco
Benihana, Inc.LLC units N/A N/A N/A 43  699  —  406  
C. J. Foods, Inc.
Preferred stock N/A N/A N/A —  75  —  576  
Cafe Rio Holding, Inc.Common Stock N/A N/A N/A 5  602  —  652  
Global ID CorporationLLC interest N/A N/A N/A 5  603  0.1  749  
Hopdoddy Holdings, LLC
LLC units N/A N/A N/A 44  217  —  53  
Hopdoddy Holdings, LLC
LLC units N/A N/A N/A 20  61  —  15  
Mendocino Farms, LLC
Common Stock N/A N/A N/A 169  770  0.1  737  
Purfoods, LLC
LLC interest N/A N/A N/A 736  1,222  0.1  2,697  
Rubio's Restaurants, Inc.
Preferred stock N/A N/A N/A 2  945  —  —  
SSRG Holdings, LLC
LLC units N/A N/A N/A 6  61  —  38  
Wood Fired Holding Corp.
LLC units N/A N/A N/A 437  444  —  26  
Wood Fired Holding Corp.
LLC units N/A N/A N/A 437  —  —  —  
5,699  0.3  5,949  
Buildings and Real Estate        
Brooks Equipment Company, LLC
Common Stock N/A N/A N/A 10  1,021  0.1  2,141  
Groundworks LLC
LLC units N/A N/A N/A —  151  —  144  
Groundworks LLC
LLC units N/A N/A N/A —  17  —  17  
1,189  0.1  2,302  
Chemicals, Plastics and Rubber
Flexan, LLC
Preferred stock N/A N/A N/A —  137  —  187  
Flexan, LLC
LLC interest N/A N/A N/A 1  —  —  —  
See Notes to Consolidated Financial Statements.
28
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Chemicals, Plastics and Rubber - (continued)
Inhance Technologies Holdings LLC
LLC units N/A N/A N/A —  $124  —  %$36  
261  —  223  
Diversified/Conglomerate Manufacturing
Inventus Power, Inc.
Preferred stock N/A N/A N/A 1  372  —  35  
Inventus Power, Inc.
LLC units N/A N/A N/A —  88  —  150  
Inventus Power, Inc.
Preferred stock N/A N/A N/A —  20  —  50  
Inventus Power, Inc.
Common Stock N/A N/A N/A 1  —  —  —  
Reladyne, Inc.
LP units N/A N/A N/A 1  931  —  467  
1,411  —  702  
Diversified/Conglomerate Service
Accela, Inc.
LLC units N/A N/A N/A 670  418  —  88  
Agility Recovery Solutions Inc.
LLC units N/A N/A N/A 97  604  0.1  758  
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.
Preferred stock N/A N/A N/A 587  462  —  559  
Astute Holdings, Inc.
LP interest N/A N/A N/A —  294  —  350  
Calabrio, Inc.
Common Stock N/A N/A N/A 26  205  —  292  
Centrify Corporation
LP interest N/A N/A N/A 1  690  —  248  
Centrify Corporation
LP interest N/A N/A N/A 263  —  —  —  
Cloudbees, Inc.
Preferred stock N/A N/A N/A 71  466  —  366  
Cloudbees, Inc.
Warrant N/A N/A N/A 131  247  —  235  
Confluence Technologies, Inc.
LLC interest N/A N/A N/A 3  412  —  514  
Connexin Software, Inc.
LLC interest N/A N/A N/A 154  192  —  175  
Convercent, Inc.
Warrant N/A N/A N/A 325  63  —  131  
Digital Guardian, Inc.
Preferred stock N/A N/A N/A 356  434  —  323  
Digital Guardian, Inc.
Warrant N/A N/A N/A 122  225  —  211  
Digital Guardian, Inc.
Preferred stock N/A N/A N/A 74  142  —  128  
Digital Guardian, Inc.
Preferred stock N/A N/A N/A 67  123  —  140  
Digital Guardian, Inc.
Warrant N/A N/A N/A 12  33  —  44  
DISA Holdings Acquisition Subsidiary Corp.
Common Stock N/A N/A N/A —  154  —  387  
EWC Growth Partners LLC
LLC interest N/A N/A N/A —  12  —  11  
GS Acquisitionco, Inc.
LP interest N/A N/A N/A 2  291  —  474  
HealthcareSource HR, Inc.
LLC interest N/A N/A N/A —  621  0.1  726  
HSI Halo Acquisition, Inc.
Preferred stock N/A N/A N/A —  288  —  242  
HSI Halo Acquisition, Inc.
Preferred stock N/A N/A N/A —  —  —  —  
Hydraulic Authority III Limited(8)(9)(10)
Preferred stock N/A N/A N/A 284  384  —  388  
Hydraulic Authority III Limited(8)(9)(10)
Common Stock N/A N/A N/A 6  43  —  —  
Property Brands, Inc.
LLC units N/A N/A N/A 63  766  0.1  990  
Internet Truckstop Group LLC
LP interest N/A N/A N/A 408  447  —  374  
Kareo, Inc.
Warrant N/A N/A N/A 53  162  —  4  
Kareo, Inc.
Preferred stock N/A N/A N/A 1  8  —  8  
Kareo, Inc.
Warrant N/A N/A N/A 5  6  —  12  
Maverick Bidco Inc.
LLC units N/A N/A N/A 2  723  —  674  
MetricStream, Inc.
Warrant N/A N/A N/A 168  263  —  193  
Namely, Inc.
Warrant N/A N/A N/A 17  28  —  17  
See Notes to Consolidated Financial Statements.
29
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Net Health Acquisition Corp.
LP interest N/A N/A N/A 1  $1,440  0.1  %$1,339  
Nexus Brands Group, Inc.
LP interest N/A N/A N/A —  547  —  354  
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH
Warrant N/A N/A N/A 4  9  —  11  
PCS Intermediate II Holdings, LLC
LLC units N/A N/A N/A 37  367  —  380  
Personify, Inc.
LLC units N/A N/A N/A 639  828  0.1  802  
Pride Midco, Inc.Preferred stock N/A N/A N/A 2  2,594  0.1  2,704  
Project Alpha Intermediate Holding, Inc.
Common Stock N/A N/A N/A 1  964  0.1  1,140  
Project Alpha Intermediate Holding, Inc.
Common Stock N/A N/A N/A 202  329  0.1  947  
RegEd Aquireco, LLC
LP interest N/A N/A N/A —  316  —  164  
RegEd Aquireco, LLC
LP interest N/A N/A N/A 3  21  —  —  
SnapLogic, Inc.
Preferred stock N/A N/A N/A 184  458  —  648  
SnapLogic, Inc.
Warrant N/A N/A N/A 69  27  —  172  
Caliper Software, Inc.
Preferred stock N/A N/A N/A 3  2,734  0.1  2,877  
Caliper Software, Inc.
Common Stock N/A N/A N/A 221  283  —  483  
Caliper Software, Inc.
Preferred stock N/A N/A N/A —  37  —  45  
Telesoft Holdings LLC
LP interest N/A N/A N/A 6  6  —  5  
Vendavo, Inc.Preferred stock N/A N/A N/A 1,017  1,017  0.1  1,515  
Verisys Corporation
LLC interest N/A N/A N/A 579  712  —  457  
Vitalyst, LLCPreferred stock N/A N/A N/A —  61  —  46  
Vitalyst, LLC
Common Stock N/A N/A N/A 1  7  —  —  
Workforce Software, LLC
Common Stock N/A N/A N/A —  973  —  330  
Xmatters, Inc. and Alarmpoint, Inc.
Preferred stock N/A N/A N/A 474  494  —  574  
Xmatters, Inc. and Alarmpoint, Inc.
Warrant N/A N/A N/A 84  64  —  30  
Xmatters, Inc. and Alarmpoint, Inc.
Preferred stock N/A N/A N/A 20  26  —  25  
23,520  1.0  24,110  
Ecological
Pace Analytical Services, LLC
LLC units N/A N/A N/A 6  700  —  884  
Electronics
Appriss Holdings, Inc.
Preferred stock N/A N/A N/A —  174  —  167  
Diligent Corporation
Preferred stock N/A N/A N/A 414  1,609  0.1  2,185  
Episerver, Inc.
LLC units N/A N/A N/A 76  807  —  552  
ES Acquisition LLC
LP interest N/A N/A N/A —  15  —  25  
Project Silverback Holdings Corp.
Preferred stock N/A N/A N/A 3  6  —  —  
Red Dawn SEI Buyer, Inc.
LP interest N/A N/A N/A 13  13  —  12  
Silver Peak Systems, Inc.
Warrant N/A N/A N/A 67  27  —  67  
2,651  0.1  3,008  
Healthcare, Education and Childcare
Active Day, Inc.
LLC interest N/A N/A N/A 1  1,099  —  389  
Acuity Eyecare Holdings, LLC
LLC interest N/A N/A N/A 1,158  1,334  0.1  1,266  
ADCS Clinics Intermediate Holdings, LLCPreferred stock N/A N/A N/A 1  1,119  —  622  
ADCS Clinics Intermediate Holdings, LLC
Common Stock N/A N/A N/A —  6  —  —  
Aspen Medical Products, LLC
Common Stock N/A N/A N/A —  77  —  62  
BIO18 Borrower, LLC(17)
LLC units N/A N/A N/A 591  1,190  0.1  1,500  
See Notes to Consolidated Financial Statements.
30
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Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
BIOVT, LLC
LLC units N/A N/A N/A —  $1,223  0.1  %$1,755  
CMI Parent Inc.
LLC units N/A N/A N/A —  240  —  249  
CMI Parent Inc.
LLC units N/A N/A N/A 2  3  —  —  
CRH Healthcare Purchaser, Inc.
LP interest N/A N/A N/A 429  469  —  575  
DCA Investment Holding, LLC
LLC units N/A N/A N/A 13,890  1,619  0.1  1,687  
DCA Investment Holding, LLC
LLC units N/A N/A N/A 140  218  —  —  
Deca Dental Management LLC
LLC units N/A N/A N/A 1,008  1,278  —  347  
Elite Dental Partners LLC
Common Stock N/A N/A N/A —  737  —  23  
Encore GC Acquisition, LLC
LLC units N/A N/A N/A 26  272  —  294  
Encore GC Acquisition, LLC
LLC units N/A N/A N/A 26  52  —  108  
ERG Buyer, LLCLLC units N/A N/A N/A 1  661  —  24  
ERG Buyer, LLC
LLC units N/A N/A N/A 8  4  —  —  
Eyecare Services Partners Holdings LLC
LLC units N/A N/A N/A —  262  —  82  
Eyecare Services Partners Holdings LLCLLC units N/A N/A N/A —  1  —  —  
G & H Wire Company, Inc.LLC interest N/A N/A N/A 336  269  —  136  
IntegraMed America, Inc.LLC interest N/A N/A N/A —  417  —  —  
Joerns Healthcare, LLC^*
Common Stock N/A N/A N/A 432  4,330  0.1  1,807  
Katena Holdings, Inc.
LLC units N/A N/A N/A 1  572  —  433  
Krueger-Gilbert Health Physics, LLC
LLC interest N/A N/A N/A 155  172  —  118  
Lombart Brothers, Inc.
Common Stock N/A N/A N/A 1  440  —  52  
MD Now Holdings, Inc.
LLC units N/A N/A N/A 15  153  —  157  
MWD Management, LLC & MWD Services, Inc.
LLC interest N/A N/A N/A 412  335  —  231  
Oliver Street Dermatology Holdings, LLC
LLC units N/A N/A N/A 452  234  —  —  
Pentec Acquisition Sub, Inc.
Preferred stock N/A N/A N/A 1  116  —  180  
Pinnacle Treatment Centers, Inc.
Preferred stock N/A N/A N/A —  528  —  619  
Pinnacle Treatment Centers, Inc.
LLC units N/A N/A N/A 5  74  —  164  
Radiology Partners, Inc.
LLC units N/A N/A N/A 11  68  —  58  
Radiology Partners, Inc.
LLC units N/A N/A N/A 43  55  —  230  
RXH Buyer Corporation
LP interest N/A N/A N/A 11  973  0.1  918  
Sage Dental Management, LLC
LLC units N/A N/A N/A —  249  —  —  
Sage Dental Management, LLC
LLC units N/A N/A N/A 3  3  —  —  
SLMP, LLC
LLC units N/A N/A N/A 668  789  0.1  1,195  
Spear Education, LLC
LLC units N/A N/A N/A —  7  —  87  
Spear Education, LLC
LLC units N/A N/A N/A 1  1  —  70  
SSH Corpration
Common Stock N/A N/A N/A —  40  —  122  
Summit Behavioral Healthcare, LLC
LLC interest N/A N/A N/A 2  98  —  115  
Summit Behavioral Healthcare, LLC
LLC interest N/A N/A N/A 2  —  —  —  
Surgical Information Systems, LLC
Common Stock N/A N/A N/A 4  414  —  413  
WHCG Management, LLC
LLC interest N/A N/A N/A 1  414  —  506  
22,615  0.7  16,594  
Insurance
Captive Resources Midco, LLC(17)
LLC units N/A N/A N/A 425  —  —  357  
See Notes to Consolidated Financial Statements.
31
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Insurance - (continued)
Orchid Underwriters Agency, LLC
LP interest N/A N/A N/A 86  $98  —  %$77  
98  —  434  
Leisure, Amusement, Motion Pictures, Entertainment
LMP TR Holdings, LLC
LLC units N/A N/A N/A 712  712  —  585  
PADI Holdco, Inc.(17)
LLC units N/A N/A N/A 1  969  —  258  
WBZ Investment LLC
LLC interest N/A N/A N/A 68117  —  95  
WBZ Investment LLC
LLC interest N/A N/A N/A 46  80  —  65  
WBZ Investment LLC
LLC interest N/A N/A N/A 38  65  —  53  
WBZ Investment LLC
LLC interest N/A N/A N/A 33  58  —  47  
WBZ Investment LLC
LLC interest N/A N/A N/A 14  24  —  20  
WBZ Investment LLC
LLC interest N/A N/A N/A 1  2  —  2  
2,027  —  1,125  
Oil and Gas
W3 Co.LLC units N/A N/A N/A 3  1,632  0.1  1,688  
W3 Co.
Preferred stock N/A N/A N/A —  224  —  227  
1,856  0.1  1,915  
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC(17)
LLC interest N/A N/A N/A 20  239  —  158  
Massage Envy, LLC
LLC interest N/A N/A N/A 749  210  0.1  1,378  
449  0.1  1,536  
Personal, Food and Miscellaneous Services
Blue River Pet Care, LLC
LLC units N/A N/A N/A —  76  —  76  
Captain D's, LLC
LLC interest N/A N/A N/A 158  156  —  174  
Encorevet Group LLC
Preferred stock N/A N/A N/A —  15  —  11  
Midwest Veterinary Partners, LLC
LLC units N/A N/A N/A —  29  —  27  
Midwest Veterinary Partners, LLC
LLC units N/A N/A N/A 6  —  —  —  
PPV Intermediate Holdings II, LLC
LLC interest N/A N/A N/A 241  231  —  272  
R.G. Barry Corporation
Preferred stock N/A N/A N/A —  161  —  123  
Ruby Slipper Cafe LLC, The
LLC units N/A N/A N/A 31  373  —  133  
Southern Veterinary Partners, LLC
LLC units N/A N/A N/A 1  717  0.1  908  
Southern Veterinary Partners, LLC
LLC units N/A N/A N/A 148  188  —  757  
Wetzel's Pretzels, LLC
Common Stock N/A N/A N/A —  416  —  199  
2,362  0.1  2,680  
Printing and Publishing
Brandmuscle, Inc.
LLC interest N/A N/A N/A —  335  —  110  
Retail Stores
2nd Ave. LLC
LP interest N/A N/A N/A 653  653  —  392  
Batteries Plus Holding Corporation
LP interest N/A N/A N/A 10  1,286  0.1  1,026  
Cycle Gear, Inc.
LLC units N/A N/A N/A 27  462  —  405  
DTLR, Inc.
LLC interest N/A N/A N/A 4411  —  575  
Elite Sportswear, L.P.
LLC interest N/A N/A N/A —  165  —  —  
Feeders Supply Company, LLC
Preferred stock N/A N/A N/A 4  400  —  409  
Feeders Supply Company, LLC
LLC units N/A N/A N/A —  —  —  —  
Jet Equipment & Tools Ltd.(8)(9)(12)
LLC units N/A N/A N/A 1  948  0.1  1,143  
See Notes to Consolidated Financial Statements.
32
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Retail Stores - (continued)
Paper Source, Inc.
Common Stock N/A N/A N/A 8  $1,387  —  %$—  
Pet Holdings ULC(8)(12)
LP interest N/A N/A N/A 677  483  —  208  
Pet Supplies Plus, LLC(15)
LLC units N/A N/A N/A 144  181  —  358  
Sola Franchise, LLC and Sola Salon Studios, LLC
LLC units N/A N/A N/A 4  496  —  510  
Sola Franchise, LLC and Sola Salon Studios, LLC
LLC units N/A N/A N/A 1  101  —  105  
6,973  0.2  5,131  
Total non-controlled/non-affiliate company equity investments$78,447  3.0  %$73,598  
Total non-controlled/non-affiliate company investments$4,319,392  $4,419,746  179.1  %$4,208,935  
Non-controlled affiliate company investments(18)
Debt investments
Beverage, Food and Tobacco
Uinta Brewing Company^(7)(8)
One stop L + 4.00%
(a)
 5.00% 08/2021 $962  $925  —  %$206  
Uinta Brewing Company(7)(8)
One stop L + 4.00%
(a)
 5.00% 08/2021 508  504  —  380  
1,470  1,429  —  586  
Buildings and Real Estate
Paradigm DKD Group, LLC(7)(8)
Senior loan L + 6.25%
(c)
 7.50% 05/2022 3,235  2,107  0.1  1,721  
Paradigm DKD Group, LLC(5)(7)(8)
Senior loan L + 6.25%
(c)
 7.50% 05/2022 1  (142) —  2  
3,236  1,965  0.1  1,723  
Diversified/Conglomerate Service
Switchfly LLC(8)
One stop L + 5.00%
(b)(c)
 6.22% 10/2023 5,725  5,545  0.2  4,301  
Switchfly LLC(8)
One stop L + 5.00%
(b)(c)
 6.22% 10/2023 478  464  —  359  
Switchfly LLC(8)
One stop L + 5.00%
(b)(c)
 6.22% 10/2023 36  35  —  28  
Switchfly LLC(5)(8)
One stop L + 8.50%
(b)(f)
 9.50% 10/2023 2  2  —  (73) 
6,241  6,046  0.2  4,615  
Electronics
Sloan Company, Inc., The(7)(8)
One stop L + 8.50%
(c)
 9.50% 04/2023 4,708  4,074  0.2  3,400  
Sloan Company, Inc., The(8)
One stop L + 8.50%
(c)
 9.50% 04/2023 597  597  —  635  
Sloan Company, Inc., The(7)(8)
One stop L + 8.50%
(c)
 9.50% 04/2023 313  272  —  225  
5,618  4,943  0.2  4,260  
Healthcare, Education and Childcare
Dental Holdings Corporation*#(7)(8)
One stop L + 6.00%
(c)
 7.00% 03/2023 10,661  10,613  0.4  8,151  
Dental Holdings Corporation(8)
One stop L + 0.50%
(a)(c)
 4.21% 03/2023 108  108  —  108  
10,769  10,721  0.4  8,259  
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc.+(8)
One stop L + 11.0%
(a)
 10.25% cash/2.00% PIK 07/2020 4,101  4,101  0.1  2,460  
Benetech, Inc.(8)
One stop P + 9.75%
(a)(f)
 10.92% cash/2.00% PIK 07/2020 633  633  —  150  
4,734  4,734  0.1  2,610  
Total non-controlled affiliate company debt investments$32,068  $29,838  1.0  %$22,053  
See Notes to Consolidated Financial Statements.
33
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Equity Investments(15)(16)
Beverage, Food and Tobacco
Uinta Brewing Company(8)
Common Stock N/A N/A N/A 153  $17  —  %$—  
Buildings and Real Estate
Paradigm DKD Group, LLC+(8)
Preferred stock N/A N/A N/A 354  114  —  —  
Paradigm DKD Group, LLC+(8)
LLC units N/A N/A N/A 71  —  —  —  
Paradigm DKD Group, LLC+(8)
LLC units N/A N/A N/A 2,004  —  —  —  
114  —  —  
Diversified/Conglomerate Service
Switchfly LLC(8)
LLC unitsN/AN/AN/A3,418  2,320  0.1  2,470  
Electronics
Sloan Company, Inc., The(8)
LLC unitsN/AN/AN/A—  152  —  —  
Sloan Company, Inc., The+(8)
Common stockN/AN/AN/A—  41  —  —  
Sloan Company, Inc., The(8)
LLC unitsN/AN/AN/A2  14  —  —  
207  —  —  
Healthcare, Education and Childcare
Dental Holdings Corporation*(8)
Common stockN/AN/AN/A—  391  —  260  
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc.(8)
LLC interestN/AN/AN/A59  —  —  —  
Benetech, Inc.(8)
LLC interestN/AN/AN/A59  —  —  —  
—  —  —  
Total non-controlled affiliate company equity investments$3,049  0.1  %$2,730  
Total non-controlled affiliate company investments$32,068  $32,887  1.1  %$24,783  
Controlled affiliate company investments(19)
Debt Investments
Diversified/Conglomerate Service
MMan Acquisition Co.^*(7)(8)
One stop N/A 10.00% PIK 08/2023 $22,529  $19,803  0.6  %$14,912  
MMan Acquisition Co.(7)(8)
One stop N/A 8.00% PIK 08/2023 1,358  1,359  0.1  1,276  
23,887  21,162  0.7  16,188  
Total controlled affiliate company debt investments$23,887  $21,162  0.7  %$16,188  
Equity investments(15)(16)
Diversified/Conglomerate Service
MMan Acquisition Co.^*+(8)
LLC units N/A N/A N/A —  $927  —  %$464  
Total controlled affiliate company equity investments$927  —  %$464  
Total controlled affiliate company investments$23,887  $22,089  0.7  %$16,652  
Total investments$4,375,347  $4,474,722  180.9  %$4,250,370  
Money market funds (included in cash and cash equivalents and restricted cash and cash equivalents)          
BlackRock Liquidity Funds T-Fund Institutional Shares (CUSIP 09248U718)
0.11% (20)
    $19,809  0.8  %$19,809  
Total money market funds$19,809  0.8  %$19,809  
See Notes to Consolidated Financial Statements.
34
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


Investment
Type
Spread
Above
Index(1)
Interest
Rate(2)
Maturity
Date
Principal ($) /
Shares(3)
Amortized CostPercentage
of Net
Assets
Fair
Value (4)
Total investments and money market funds$4,494,531  181.7  %$4,270,179  


^
Denotes that all or a portion of the loan secures the notes offered in the 2014 Debt Securitization (as defined in Note 7).
*
Denotes that all or a portion of the loan secures the notes offered in the 2018 Debt Securitization (as defined in Note 7).
#
Denotes that all or a portion of the loan secures the notes offered in the GCIC 2018 Debt Securitization (as defined in Note 7).
+
Denotes that all or a portion of the loan collateralizes the WF Credit Facility (as defined in Note 7).
!
Denotes that all or a portion of the loan collateralizes the DB Credit Facility (as defined in Note 7).
~
Denotes that all or a portion of the loan collateralizes the MS Credit Facility II (as defined in Note 7).
(1)The majority of the investments bear interest at a rate that is permitted to be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”) denominated in U.S. dollars or U.K. pound sterling (“GBP”), Euro Interbank Offered Rate (“EURIBOR” or “E”) or Prime (“P”) and which reset daily, monthly, quarterly, semiannually, or annually. For each, the Company has provided the spread over LIBOR, EURIBOR or Prime and the weighted average current interest rate in effect as of June 30, 2020. Certain investments are subject to a LIBOR, EURIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable. Listed below are the index rates as of June 30, 2020, which was the last business day of the period on which LIBOR or EURIBOR was determined. The actual index rate for each loan listed may not be the applicable index rate outstanding as of June 30, 2020, as the loan may have priced or repriced based on an index rate prior to June 30, 2020.
(a) Denotes that all or a portion of the loan was indexed to the 30-day LIBOR, which was 0.16% as of June 30, 2020.
(b) Denotes that all or a portion of the loan was indexed to the 60-day LIBOR, which was 0.23% as of June 30, 2020.
(c) Denotes that all or a portion of the loan was indexed to the 90-day LIBOR, which was 0.30.% as of June 30, 2020.
(d) Denotes that all or a portion of the loan was indexed to the 180-day LIBOR, which was 0.37% as of June 30, 2020.
(e) Denotes that all or a portion of the loan was indexed to the 360-day LIBOR, which was 0.55% as of June 30, 2020.
(f) Denotes that all or a portion of the loan was indexed to the Prime rate, which was 3.25% as of June 30, 2020.
(g) Denotes that all or a portion of the loan was indexed to the 90-day EURIBOR, which was -0.42% as of June 30, 2020.
(h) Denotes that all or a portion of the loan was indexed to the 30-day GBP LIBOR, which was 0.09% as of June 30, 2020.
(i) Denotes that all or a portion of the loan was indexed to the 90-day GBP LIBOR, which was 0.14% as of June 30, 2020.
(j) Denotes that all or a portion of the loan was indexed to the 180-day GBP LIBOR, which was 0.29% as of June 30, 2020.
(k Denotes that all or a portion of the loan was indexed to the Australia Three Month Interbank Rate, which was 0.15%, as of June 30, 2020.
(l) Denotes that all or a portion of the loan was indexed to the 90-day Canadian Bankers Acceptances Rate, which was 0.56%, as of June 30, 2020.
(2)For portfolio companies with multiple interest rate contracts, the interest rate shown is a weighted average current interest rate in effect as of June 30, 2020.
(3)The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.
(4)The fair value of the investment was valued using significant unobservable inputs. See Note 6. Fair Value Measurements.
(5)The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par. The negative amortized cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.
(6)The entire commitment was unfunded as of June 30, 2020. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.
(7)Loan was on non-accrual status as of June 30, 2020, meaning that the Company has ceased recognizing interest income on the loan.
(8)The investment is treated as a non-qualifying asset under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, the Company can not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of June 30, 2020, total non-qualifying assets at fair value represented 5.5% of the Company's total assets calculated in accordance with the 1940 Act.
(9)Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date or the date of the transaction. See Note 2. Significant Accounting Policies and Recent Accounting Updates - Foreign Currency Transactions.
(10)The headquarters of this portfolio company is located in the United Kingdom.
(11)The headquarters of this portfolio company is located in Australia.
(12)The headquarters of this portfolio company is located in Canada.
(13)The headquarters of this portfolio company is located in Luxembourg.
See Notes to Consolidated Financial Statements.
35
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
June 30, 2020
(In thousands)


(14)The headquarters of this portfolio company is located in Andorra.
(15) Equity investments are non-income producing securities unless otherwise noted.
(16) Ownership of certain equity investments occurs through a holding company or partnership.
(17) The Company holds an equity investment that entitles it to receive preferential dividends.
(18)As defined in the 1940 Act, the Company is deemed to be an “affiliated person"” of the portfolio company as the Company owns five percent or more of the portfolio company's voting securities (“non-controlled affiliate”). Transactions related to investments in non-controlled affiliates for the nine months ended June 30, 2020 were as follows:
Portfolio Company
Fair value as of September 30, 2019
Gross Additions(m)
Gross Reductions(n)
Net change in unrealized gain (loss)Net realized gain (loss)Fair value as of June 30, 2020Interest, dividend and fee income
Benetech, Inc.
$3,749  $843  $(902) $(1,080) $—  $2,610  $500  
Dental Holdings Corporation (o)
—  17,394  (3,884) (1,744) (3,248) 8,518  287  
Paradigm DKD Group, LLC(p)
—  3,304  (1,252) (329) —  1,723  (48) 
Sloan Company, Inc., The (o)
—  18,986  (11,951) 2,017  (4,790) 4,262  (79) 
Switchfly LLC
7,783  535  (94) (1,139) —  7,085  264  
Uinta Brewing Company
1,043  1,519  (1,207) (769) —  586  (3) 
Total Non-Controlled Affiliates
$12,575  $42,581  $(19,290) $(3,044) $(8,038) $24,784  $921  

(m)
Gross additions may include increases in the cost basis of investments resulting from new investments, amounts related to payment-in-kind (“PIK”) interest capitalized and added to the principal balance of the respective loans, the accretion of discounts, the exchange of one or more existing investments for one or more new investments and the movement of an existing portfolio company into this affiliated category from a different category.
(n)
Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments and sales, the amortization of premiums and the exchange of one or more existing securities for one or more new securities.
(o)
During the three months ended March 31, 2020, the Company's ownership increased to over five percent of the portfolio company's voting securities.
(p)
During the three months ended June 30, 2020, the Company's ownership increased to over five percent of the portfolio company's voting securities.
(19)As defined in the 1940 Act, the Company is deemed to be both an “affiliated person” of and “control” this portfolio company as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement) (“controlled affiliate”). Transactions related to investments in controlled affiliates for the nine months ended June 30, 2020 were as follows:
Portfolio Company
Fair value as of September 30, 2019
Gross Additions(q)
Gross Reductions(r)
Net change in unrealized gain (loss)Net realized gain (loss)Fair value as of June 30, 2020Interest, dividend and fee income
MMan Acquisition Co.(s)
$—  $30,842  $(11,222) $(2,968) $—  $16,652  $(57) 
Senior Loan Fund LLC(t)
74,386  —  (74,838) 496  (44) —  —  
GCIC Senior Loan Fund LLC(u)
49,258  —  (48,613) 3,347  (3,992) —  1,905  
Total Controlled Affiliates
$123,644  $30,842  $(134,673) $875  $(4,036) $16,652  $1,848  

(q)
Gross additions may include increases in the cost basis of investments resulting from new investments, amounts related to PIK interest capitalized and added to the principal balance of the respective loans, the accretion of discounts, the exchange of one or more existing investments for one or more new investments and the movement of an existing portfolio company into this affiliated category from a different category.
(r)
Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reductions in cost basis due to the Purchase Agreement (defined in Note 1), the amortization of premiums and the exchange of one or more existing securities for one or more new.
(s)
During the three months ended December 31, 2019, the Company's ownership increased to over twenty-five percent of the portfolio company's voting securities.
(t)
Prior to the closing of the transactions contemplated by the Purchase Agreement (defined in Note 1) on January 1, 2020, together with RGA Reinsurance Company (“RGA”), the Company co-invested through Senior Loan Fund (“SLF”). SLF was capitalized as transactions were completed and all portfolio and investment decisions in respect to SLF were approved by the SLF investment committee consisting of two representatives of the Company and RGA (with unanimous approval required from (i) one representative of each of the Company and RGA or (ii) both representatives of each of the Company and RGA). Therefore, although the Company owned more than 25% of the voting securities of SLF, the Company did not have sole control over significant actions of SLF for purposes of the 1940 Act or otherwise.
(u)
Prior to the closing of the transactions contemplated by the Purchase Agreement (defined in Note 1) on January 1, 2020, together with Aurora National Life Assurance Company (“Aurora”), the Company co-invested through GCIC Senior Loan Fund (“GCIC SLF”), following the acquisition of GCIC SLF in the merger with GCIC (described in Note 1). GCIC SLF was capitalized as transactions were completed and all portfolio and investment decisions in respect to GCIC SLF were approved by the GCIC SLF investment committee consisting of two representatives of the Company and Aurora (with unanimous approval required from (i) one representative of each of the Company and Aurora or (ii) both representatives of each of the Company and Aurora). Therefore, although the Company owned more than 25% of the voting securities of GCIC SLF, the Company did not have sole control over significant actions of GCIC SLF for purposes of the 1940 Act or otherwise.
(20)The rate shown is the annualized seven-day yield as of June 30, 2020.

See Notes to Consolidated Financial Statements.
36

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)


Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Investments
Non-controlled/non-affiliate company investments
Debt investments
Aerospace and Defense
ILC Dover, LP#+!~
Senior loanL + 4.75%
(a)(c)(d)
6.94%12/2023$6,617  $6,583  0.3  %$6,617  
NTS Technical Systems^*#+!~
One stopL + 6.25%
(a)(c)
8.35%06/202125,650  25,611  1.2  25,650  
NTS Technical Systems#+!~
One stopL + 6.25%
(a)(c)
8.35%06/20214,210  4,201  0.2  4,210  
NTS Technical Systems(5)
One stopL + 6.25%
N/A(6)
06/2021—  (40) —  —  
Tronair Parent, Inc.^+
Senior loanL + 4.75%
(c)
6.93%09/2023726  717  —  682  
Tronair Parent, Inc.
Senior loanL + 4.50%
(c)(f)
6.96%09/2021160  157  —  148  
Whitcraft LLC^*+
One stopL + 5.50%
(c)
7.60%04/202342,099  43,102  1.9  42,099  
Whitcraft LLC
One stopL + 5.50%
(c)
7.60%04/20238,300  8,292  0.4  8,300  
Whitcraft LLC(5)
One stopL + 5.50%
N/A(6)
04/2023—  (1) —  —  
87,762  88,622  4.0  87,706  
Automobile
Dent Wizard International Corporation#+!~
Senior loanL + 4.00%
(a)
6.05%04/202212,338  12,498  0.6  12,338  
Grease Monkey International, LLC^*
Senior loanL + 5.00%
(a)
7.04%11/20227,834  7,934  0.4  7,834  
Grease Monkey International, LLC#!~
Senior loanL + 5.00%
(a)
7.04%11/20222,394  2,494  0.1  2,394  
Grease Monkey International, LLC#!~
Senior loanL + 5.00%
(a)
7.04%11/20221,215  1,267  0.1  1,215  
Grease Monkey International, LLC#+!~
Senior loanL + 5.00%
(a)
7.04%11/20221,100  1,144  0.1  1,100  
Grease Monkey International, LLC
Senior loanL + 5.00%
(a)
7.04%11/2022126  130  —  126  
Grease Monkey International, LLC
Senior loanL + 5.00%
(a)
7.04%11/2022110  111  —  110  
JHCC Holdings LLC
One stopL + 5.50%
(c)
7.60%09/202515,788  15,475  0.7  15,630  
JHCC Holdings LLC
One stopL + 5.50%
(a)
7.54%09/202510  9  —  9  
JHCC Holdings LLC(5)
One stopL + 5.50%
N/A(6)
09/2025—  (3) —  (3) 
Polk Acquisition Corp.*
Senior loanL + 5.25%
(a)
7.29%06/20225,185  5,307  0.2  5,081  
Polk Acquisition Corp.
Senior loanL + 5.25%
(a)
7.29%06/202230  31  —  30  
Power Stop, LLC#+!~
Senior loanL + 4.75%
(c)
6.85%10/20252,871  2,935  0.1  2,871  
Quick Quack Car Wash Holdings, LLC*
One stopL + 6.50%
(a)
8.54%04/202313,218  13,345  0.6  13,218  
Quick Quack Car Wash Holdings, LLC*
One stopL + 6.50%
(a)
8.54%04/20232,084  2,169  0.1  2,084  
Quick Quack Car Wash Holdings, LLC
One stopL + 6.50%
(a)(c)
8.55%04/20231,822  1,897  0.1  1,822  
Quick Quack Car Wash Holdings, LLC*
One stopL + 6.50%
(a)
8.54%04/20231,392  1,450  0.1  1,392  
Quick Quack Car Wash Holdings, LLC
One stopL + 6.50%
(a)
8.55%04/202380  82  —  80  
67,597  68,275  3.2  67,331  
Beverage, Food and Tobacco
Abita Brewing Co., L.L.C.+
One stopL + 5.75%
(c)
7.87%04/20219,983  10,051  0.5  9,882  
Abita Brewing Co., L.L.C.(5)
One stopL + 5.75%
N/A(6)
04/2021—  (1) —  (2) 
BJH Holdings III Corp.#+!~
One stopL + 5.75%
(a)
7.79%08/202546,400  48,003  2.1  45,936  
BJH Holdings III Corp.
One stopL + 5.75%
(a)
7.79%08/2025160  151  —  152  
C. J. Foods, Inc.^*
One stopL + 6.25%
(c)
8.35%05/202029,179  30,052  1.3  29,179  
C. J. Foods, Inc.^
One stopL + 6.25%
(c)
8.35%05/20202,207  2,275  0.1  2,207  
C. J. Foods, Inc.
One stopL + 6.25%
(a)
8.30%05/2020592  636  —  592  
Cafe Rio Holding, Inc.^
One stopL + 5.75%
(c)
7.95%09/202318,801  19,065  0.9  18,801  
Cafe Rio Holding, Inc.
One stopL + 5.75%
(c)
7.95%09/20232,270  2,367  0.1  2,270  
Cafe Rio Holding, Inc.*
One stopL + 5.75%
(c)
7.95%09/20231,442  1,503  0.1  1,442  
Cafe Rio Holding, Inc.
One stopL + 5.75%
(c)
7.95%09/20231,273  1,327  0.1  1,273  
Cafe Rio Holding, Inc.
One stopL + 5.75%
(c)
7.85%09/2023335  332  —  335  
Cafe Rio Holding, Inc.
One stopL + 5.75%
(c)
7.85%09/2023183  183  —  183  
Cafe Rio Holding, Inc.
One stopP + 4.75%
(f)
9.75%09/202360  61  —  60  
See Notes to Consolidated Financial Statements.
37

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Beverage, Food and Tobacco - (continued)
Fintech Midco, LLC*
One stopL + 5.25%
(a)
7.30%08/2024$24,661  $25,093  1.1  %$24,661  
Fintech Midco, LLC
One stopL + 5.25%
(a)
7.30%08/20241,142  1,190  0.1  1,142  
Fintech Midco, LLC(5)
One stopL + 5.25%
N/A(6)
08/2024—  (1) —  —  
Fintech Midco, LLC(5)
One stopL + 5.25%
N/A(6)
08/2024—  (1) —  —  
Flavor Producers, LLC#!~
Senior loanL + 4.75%
(c)
6.85%12/20235,031  4,903  0.2  4,630  
Flavor Producers, LLC(5)
Senior loanL + 4.75%
N/A(6)
12/2022—  (6) —  (10) 
FWR Holding Corporation^
One stopL + 5.50%
(a)
7.55%08/20239,203  9,334  0.4  9,203  
FWR Holding Corporation
One stopL + 5.50%
(a)
7.55%08/20231,839  1,916  0.1  1,839  
FWR Holding Corporation
One stopL + 5.50%
(a)
7.55%08/20231,163  1,211  0.1  1,163  
FWR Holding Corporation
One stopL + 5.50%
(a)
7.55%08/2023368  381  —  368  
FWR Holding Corporation
One stopL + 5.50%
(a)
7.55%08/2023275  285  —  275  
FWR Holding Corporation
One stopL + 5.50%
(a)
7.55%08/202334  33  —  34  
FWR Holding Corporation
One stopL + 5.50%
N/A(6)
08/2023—  —  —  —  
Global ID Corporation*#+!~
One stopL + 6.50%
(c)
8.60%11/202111,798  12,028  0.5  11,798  
Global ID Corporation*
One stopL + 6.50%
(c)
8.60%11/2021821  854  —  821  
Global ID Corporation
One stopL + 6.50%
(c)
8.60%11/2021719  749  —  719  
Global ID Corporation
One stopL + 6.50%
(c)
8.60%11/2021494  513  —  494  
Global ID Corporation
One stopL + 6.50%
N/A(6)
11/2021—  —  —  —  
Global ID Corporation
One stopL + 6.50%
N/A(6)
11/2021—  —  —  —  
Mendocino Farms, LLC
One stopL + 8.50%
(a)
3.04% cash/7.50% PIK06/2023767  799  —  767  
Mendocino Farms, LLC
One stopL + 8.50%
(a)
3.04% cash/7.50% PIK06/2023604  628  —  604  
Mendocino Farms, LLC(5)
One stopL + 1.00%
N/A(6)
06/2023—  (1) —  —  
Mid-America Pet Food, L.L.C.^*
One stopL + 6.00%
(c)
8.10%12/202122,514  22,992  1.0  22,514  
Mid-America Pet Food, L.L.C.
One stopL + 6.00%
N/A(6)
12/2021—  —  —  —  
NBC Intermediate, LLC#+!~
Senior loanL + 4.25%
(a)(c)
6.40%09/20232,365  2,402  0.1  2,365  
NBC Intermediate, LLC*
Senior loanL + 4.25%
(c)
6.45%09/20232,309  2,346  0.1  2,309  
NBC Intermediate, LLC^
Senior loanL + 4.25%
(c)
6.45%09/20232,024  2,010  0.1  2,024  
NBC Intermediate, LLC
Senior loanL + 4.25%
N/A(6)
09/2023—  —  —  —  
Purfoods, LLC
One stopL + 5.50%
(c)
7.62%05/202116,176  16,457  0.7  16,176  
Purfoods, LLC
One stopL + 5.50%
(c)
7.60%05/2021543  564  —  543  
Purfoods, LLC^
One stopL + 5.50%
(c)
7.60%05/2021391  407  —  391  
Purfoods, LLC#!~
One stopL + 5.50%
(c)
7.60%05/2021296  307  —  296  
Purfoods, LLC#!~
One stopL + 5.50%
(c)
7.60%05/2021296  307  —  296  
Purfoods, LLC*
One stopL + 5.50%
(c)
7.60%05/2021295  307  —  295  
Purfoods, LLC
One stopL + 5.50%
(c)
7.59%05/2021253  257  —  253  
Purfoods, LLC
One stopN/A7.00% PIK05/2026241  246  —  241  
Purfoods, LLC
One stopL + 5.50%
(c)
7.60%05/2021149  155  —  149  
Purfoods, LLC^
One stopL + 5.50%
(c)
7.60%05/202148  48  —  48  
Purfoods, LLC
One stopL + 5.50%
(a)(c)
7.57%05/202140  41  —  40  
Purfoods, LLC^
One stopL + 5.50%
(c)
7.60%05/202130  30  —  30  
Purfoods, LLC^
One stopL + 5.50%
(c)
7.60%05/202130  30  —  30  
Purfoods, LLC^
One stopL + 5.50%
(c)
7.60%05/202128  28  —  28  
Purfoods, LLC^
One stopL + 5.50%
(c)
7.60%05/202122  22  —  22  
Purfoods, LLC^
One stopL + 5.50%
(c)
7.60%05/202122  22  —  22  
Purfoods, LLC^
One stopL + 5.50%
(c)
7.60%05/202120  20  —  20  
Rubio's Restaurants, Inc.^*
Senior loanL + 7.00%
(c)
9.1%10/201911,349  11,330  0.5  11,349  
Rubio's Restaurants, Inc.
Senior loanL + 7.00%
(a)(f)
9.62%10/201990  91  —  90  
Wood Fired Holding Corp.*
One stopL + 5.75%
(c)
8.06%12/202314,180  14,451  0.6  14,180  
See Notes to Consolidated Financial Statements.
38

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Beverage, Food and Tobacco - (continued)
Wood Fired Holding Corp.
One stopL + 5.75%
(c)
7.85%12/2023$40  $39  —  %$40  
Wood Fired Holding Corp.
One stopL + 5.75%
N/A(6)
12/2023—  —  —  —  
245,555  250,822  10.8  244,569  
Broadcasting and Entertainment
TouchTunes Interactive Networks, Inc.^+
Senior loanL + 4.75%
(a)
6.79%05/20212,108  2,136  0.1  2,108  
Buildings and Real Estate
Brooks Equipment Company, LLC^*
One stopL + 5.00%
(c)
7.12%08/202026,730  26,930  1.2  26,730  
Brooks Equipment Company, LLC*
One stopL + 5.00%
(b)(c)
7.13%08/2020668  671  —  668  
Brooks Equipment Company, LLC(5)
One stopL + 5.00%
N/A(6)
08/2020—  (3) —  —  
Jensen Hughes, Inc.
Senior loanL + 4.50%
(a)(f)
6.55%03/20241,015  1,058  0.1  1,015  
Jensen Hughes, Inc.+
Senior loanL + 4.50%
(a)(f)
6.55%03/2024923  940  —  923  
Jensen Hughes, Inc.
Senior loanL + 4.50%
(a)(f)
6.55%03/2024443  462  —  443  
Jensen Hughes, Inc.+
Senior loanL + 4.50%
(a)(c)
6.54%03/2024283  287  —  283  
MRI Software LLC^
One stopL + 5.75%
(a)
7.80%06/202341,896  42,320  1.9  41,896  
MRI Software LLC^*+
One stopL + 5.75%
(a)
7.80%06/202330,692  31,364  1.4  30,692  
MRI Software LLC#+!~
One stopL + 5.75%
(a)
7.80%06/20237,601  7,834  0.3  7,601  
MRI Software LLC
One stopL + 5.75%
(a)
7.80%06/20236,561  6,841  0.3  6,561  
MRI Software LLC
One stopL + 5.75%
(a)
7.80%06/20234,604  4,793  0.2  4,604  
MRI Software LLC^
One stopL + 5.75%
(a)
7.80%06/20233,231  3,369  0.1  3,231  
MRI Software LLC#+!~
One stopL + 5.75%
(a)
7.80%06/20232,068  2,157  0.1  2,068  
MRI Software LLC
One stopL + 5.75%
(a)
7.80%06/20231,207  1,256  0.1  1,207  
MRI Software LLC^
One stopL + 5.75%
(a)
7.80%06/2023696  708  —  696  
MRI Software LLC#!~
One stopL + 5.75%
(a)
7.80%06/2023292  289  —  292  
MRI Software LLC*
One stopL + 5.75%
(a)
7.80%06/2023292  290  —  292  
MRI Software LLC*
One stopL + 5.75%
(a)
7.80%06/2023192  191  —  192  
MRI Software LLC#!~
One stopL + 5.75%
(a)
7.80%06/202397  96  —  97  
MRI Software LLC(5)
One stopL + 5.75%
N/A(6)
06/2023—  (2) —  —  
MRI Software LLC(5)
One stopL + 5.75%
N/A(6)
06/2023—  (2) —  —  
Paradigm DKD Group, LLC+(7)
Senior loanL + 6.25%
(c)
8.35%05/20221,654  1,207  0.1  1,183  
Paradigm DKD Group, LLC(5)(7)
Senior loanL + 6.25%
(c)
N/A(6)
05/2022—  (64) —  (64) 
131,145  132,992  5.8  130,610  
Chemicals, Plastics and Rubber
Flexan, LLC*
One stopL + 5.75%
(c)
7.85%02/20203,306  3,345  0.1  3,306  
Flexan, LLC^
One stopL + 5.75%
(c)
7.85%02/20201,556  1,575  0.1  1,556  
Flexan, LLC
One stopP + 4.50%
(f)
9.50%02/202030  31  —  30  
Inhance Technologies Holdings LLC
One stopL + 5.25%
(c)
7.57%07/202412,832  12,982  0.6  12,832  
Inhance Technologies Holdings LLC
One stopL + 5.25%
(c)
7.57%07/2024855  890  —  855  
Inhance Technologies Holdings LLC
One stopP + 4.25%
(f)
9.25%07/2024100  100  —  100  
18,679  18,923  0.8  18,679  
Diversified/Conglomerate Manufacturing
Blackbird Purchaser, Inc.#+!~
Senior loanL + 4.50%
(c)(f)
6.6%04/202613,149  13,494  0.6  13,149  
Blackbird Purchaser, Inc.
Senior loanL + 4.50%
(c)(f)
6.60%04/2026598  620  —  598  
Blackbird Purchaser, Inc.
Senior loanL + 4.50%
(c)
6.6%04/202470  68  —  70  
Chase Industries, Inc.#+!~
Senior loanL + 4.00%
(c)(f)
6.1%05/202512,120  12,267  0.5  12,120  
Chase Industries, Inc.
Senior loanL + 4.00%
(c)
6.1%05/2025991  1,030  0.1  991  
Chase Industries, Inc.
Senior loanL + 4.00%
(c)(f)
6.10%05/2023306  311  —  306  
Inventus Power, Inc.^*+
One stopL + 6.50%
(a)
8.54%04/202015,885  15,399  0.6  14,295  
Inventus Power, Inc.
One stopL + 6.50%
(a)
8.55%04/2020610  581  —  530  
Pasternack Enterprises, Inc. and Fairview Microwave, Inc#+!~
Senior loanL + 4.00%
(a)(f)
6.04%07/202513,702  13,973  0.6  13,702  
See Notes to Consolidated Financial Statements.
39

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Diversified/Conglomerate Manufacturing - (continued)
Pasternack Enterprises, Inc. and Fairview Microwave, Inc
Senior loanL + 4.00%
(b)
6.09%07/2023$8  $8  —  %$8  
PetroChoice Holdings, Inc.^
Senior loanL + 5.00%
(c)
7.26%08/20223,309  3,320  0.1  3,211  
Reladyne, Inc.^*
Senior loanL + 5.00%
(c)
7.32%07/202227,295  27,634  1.2  27,295  
Reladyne, Inc.
Senior loanL + 5.00%
(c)
7.32%07/20222,366  2,457  0.1  2,366  
Reladyne, Inc.
Senior loanL + 5.00%
(c)
7.10%07/20221,732  1,805  0.1  1,732  
Reladyne, Inc.
Senior loanL + 5.00%
(c)
7.32%07/20221,561  1,627  0.1  1,561  
Reladyne, Inc.^
Senior loanL + 5.00%
(c)
7.32%07/20221,283  1,333  0.1  1,283  
Reladyne, Inc.#!~
Senior loanL + 5.00%
(c)
7.32%07/20221,104  1,147  0.1  1,104  
Reladyne, Inc.#!~
Senior loanL + 5.00%
(c)
7.32%07/2022503  523  —  503  
Togetherwork Holdings, LLC*
One stopL + 6.25%
(a)
8.29%03/202515,724  15,898  0.7  15,724  
Togetherwork Holdings, LLC#+!~
One stopL + 6.25%
(a)
8.29%03/20251,822  1,897  0.1  1,822  
Togetherwork Holdings, LLC
One stopL + 6.25%
(a)
8.29%03/20251,768  1,837  0.1  1,768  
Togetherwork Holdings, LLC*
One stopL + 6.25%
(a)
8.29%03/20251,724  1,795  0.1  1,724  
Togetherwork Holdings, LLC#+!~
One stopL + 6.25%
(a)
8.29%03/20251,664  1,704  0.1  1,664  
Togetherwork Holdings, LLC*+
One stopL + 6.25%
(a)
8.29%03/20251,605  1,671  0.1  1,605  
Togetherwork Holdings, LLC
One stopL + 6.25%
(a)
8.29%03/20251,496  1,556  0.1  1,496  
Togetherwork Holdings, LLC*
One stopL + 6.25%
(a)
8.29%03/20251,225  1,247  0.1  1,225  
Togetherwork Holdings, LLC
One stopL + 6.25%
(a)
8.29%03/2025675  701  —  675  
Togetherwork Holdings, LLC
One stopL + 6.25%
(a)
8.29%03/202566  67  —  66  
Togetherwork Holdings, LLC#!~
One stopL + 6.25%
(a)
8.29%03/202560  62  —  60  
Togetherwork Holdings, LLC(5)
One stopL + 6.25%
N/A(6)
03/2024—  (2) —  —  
124,421  126,030  5.6  122,653  
Diversified/Conglomerate Service
3ES Innovation, Inc.#+!~(8)(12)
One stopL + 5.75%
(c)(d)
7.81%05/202513,900  14,196  0.6  13,900  
3ES Innovation, Inc.(5)(8)(12)
One stopL + 5.75%
N/A(6)
05/2025—  (2) —  —  
Accela, Inc.*
One stopL + 8.75%
(a)
5.29% cash/5.50% PIK09/202311,933  11,983  0.5  11,695  
Accela, Inc.
One stopL + 8.75%
(a)
5.29% cash/5.50% PIK09/2023996  1,003  —  976  
Accela, Inc.
One stopL + 8.75%
(a)
5.29% cash/5.50% PIK09/2023104  104  —  102  
Agility Recovery Solutions Inc.^*
One stopL + 6.00%
(e)
8.02%03/202322,708  22,869  1.0  22,708  
Agility Recovery Solutions Inc.
One stopL + 6.00%
(a)(c)
8.10%03/2023201  196  —  201  
Apptio, Inc.#!~
One stopL + 7.25%
(c)
9.56%01/202557,009  57,889  2.6  57,009  
Apptio, Inc.(5)
One stopL + 7.25%
N/A(6)
01/2025—  (2) —  —  
Arch Global CCT Holdings Corp.#+!~
Senior loanL + 4.75%
(a)(f)
6.79%04/20263,853  3,896  0.2  3,853  
Arch Global CCT Holdings Corp.
Senior loanL + 4.75%
N/A(6)
04/2025—  —  —  —  
Arch Global CCT Holdings Corp.
Senior loanL + 4.75%
N/A(6)
04/2026—  —  —  —  
Astute Holdings, Inc.
One stopL + 6.00%
(a)
8.04%04/202510,935  11,132  0.5  10,935  
Astute Holdings, Inc.
One stopL + 6.00%
(a)
8.04%04/202540  39  —  40  
Astute Holdings, Inc.(5)
One stopL + 6.00%
N/A(6)
04/2025—  (2) —  —  
AutoQuotes, LLC
One stopL + 5.75%
(c)
7.88%11/20249,888  10,056  0.4  9,888  
AutoQuotes, LLC
One stopL + 5.75%
N/A(6)
11/2024—  —  —  —  
Axiom Merger Sub Inc.#!~
One stopL + 5.50%
(b)(c)
7.85%04/20265,906  5,969  0.3  5,906  
Axiom Merger Sub Inc.#+!~(8)(9)
One stopE + 5.75%
(g)
5.75%04/20262,442  2,467  0.1  2,378  
Axiom Merger Sub Inc.(5)
One stopL + 5.50%
N/A(6)
04/2026—  (1) —  —  
Axiom Merger Sub Inc.(5)
One stopL + 5.50%
N/A(6)
04/2026—  (3) —  —  
Bazaarvoice, Inc.*#+!~
One stopL + 5.75%
(a)
7.79%02/202448,613  49,581  2.2  48,613  
Bazaarvoice, Inc.(5)
One stopL + 5.75%
N/A(6)
02/2024—  (3) —  —  
Bearcat Buyer, Inc.#+!~
Senior loanL + 4.25%
(c)
6.35%07/20262,957  2,983  0.1  2,928  
See Notes to Consolidated Financial Statements.
40

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Diversified/Conglomerate Service - (continued)
Bearcat Buyer, Inc.#!~
Senior loanL + 4.25%
(c)
6.35%07/2026$312  $309  —  %$309  
Bearcat Buyer, Inc.
Senior loanL + 4.25%
(c)
6.35%07/2026166  167  —  162  
Bearcat Buyer, Inc.
Senior loanL + 4.25%
N/A(6)
07/2024—  —  —  —  
Bullhorn, Inc.#!~
One stopL + 6.75%
(b)
8.91%11/20225,082  5,094  0.2  5,132  
Bullhorn, Inc.#!~
One stopL + 6.75%
(b)
8.91%11/20221,217  1,220  0.1  1,229  
Calabrio, Inc.#!~
One stopL + 6.50%
(c)
8.60%06/20259,880  10,058  0.4  9,880  
Calabrio, Inc.
One stopL + 6.50%
(a)(c)
8.54%06/202584  84  —  84  
Caliper Software, Inc.#!~
One stopL + 6.00%
(c)(f)
8.10%11/202526,137  26,698  1.2  26,137  
Caliper Software, Inc.
One stopL + 6.00%
(c)
8.10%11/2023284  287  —  284  
Centrify Corporation*
One stopL + 6.25%
(c)
8.36%08/202423,375  23,422  1.0  22,674  
Centrify Corporation
One stopP + 5.25%
(f)
10.25%08/2024300  300  —  292  
Clearwater Analytics, LLC^*
One stopL + 7.00%
(c)
9.20%09/202216,458  16,452  0.7  16,458  
Clearwater Analytics, LLC+
One stopL + 7.00%
(c)
9.22%07/20256,102  6,134  0.3  6,102  
Clearwater Analytics, LLC(5)
One stopL + 7.00%
N/A(6)
09/2022—  (4) —  —  
Cloudbees, Inc.
One stopL + 9.00%
(a)(c)
10.60% cash/0.50% PIK05/20234,193  4,240  0.2  4,172  
Cloudbees, Inc.
One stopL + 9.00%
(a)
10.54% cash/0.50% PIK08/20211,462  1,482  0.1  1,421  
Cloudbees, Inc.
One stopL + 8.50%
N/A(6)
05/2023—  —  —  —  
Confluence Technologies, Inc.
One stopL + 5.50%
(a)
7.55%03/202415,470  15,741  0.7  15,470  
Confluence Technologies, Inc.(5)
One stopL + 5.50%
N/A(6)
03/2024—  (1) —  —  
Connexin Software, Inc.#!~
One stopL + 8.50%
(a)
10.54%02/20247,550  7,637  0.3  7,475  
Connexin Software, Inc.
One stopL + 8.50%
N/A(6)
02/2024—  —  —  —  
Conservice, LLC#+!~
One stopL + 5.25%
(a)
7.29%12/20243,794  3,870  0.2  3,794  
Conservice, LLC
One stopL + 5.25%
N/A(6)
12/2024—  —  —  —  
Daxko Acquisition Corporation^*
One stopL + 4.75%
(a)
6.79%09/202322,173  22,490  1.0  22,173  
Daxko Acquisition Corporation(5)
One stopL + 4.75%
N/A(6)
09/2023—  (1) —  —  
Digital Guardian, Inc.
One stopL + 9.50%
(c)
8.82% cash/3.00% PIK06/20238,470  8,855  0.4  8,896  
Digital Guardian, Inc.
Subordinated debtN/A8.00% PIK06/20238  6  —  8  
Digital Guardian, Inc.
One stopL + 6.50%
N/A(6)
06/2023—  18  —  19  
Digital Guardian, Inc.
One stopL + 5.00%
N/A(6)
06/2023—  —  —  —  
DISA Holdings Acquisition Subsidiary Corp.#+!~
Senior loanP + 3.00%
(c)(f)
7.09%06/20225,107  5,228  0.2  5,107  
DISA Holdings Acquisition Subsidiary Corp.
Senior loanL + 4.00%
(a)(c)(f)
6.04%06/202220  19  —  20  
DISA Holdings Acquisition Subsidiary Corp.
Senior loanL + 4.00%
N/A(6)
06/2022—  4  —  —  
E2open, LLC*#+!~
One stopL + 5.75%
(c)
7.87%11/202486,772  87,841  3.9  86,772  
E2open, LLC(5)
One stopL + 5.75%
N/A(6)
11/2024—  (6) —  —  
EGD Security Systems, LLC^*
One stopL + 5.75%
(c)
8.06%06/202330,092  30,588  1.4  30,092  
EGD Security Systems, LLC
One stopL + 5.75%
(b)(c)
8.06%06/2023644  669  —  644  
EGD Security Systems, LLC(5)
One stopL + 5.75%
N/A(6)
06/2023—  (2) —  —  
EGD Security Systems, LLC(5)
One stopL + 5.75%
N/A(6)
06/2023—  (2) —  —  
GS Acquisitionco, Inc.*#+!~
One stopL + 5.75%
(a)
7.80%05/202454,564  55,059  2.4  53,881  
GS Acquisitionco, Inc.*
One stopL + 5.75%
(a)
7.80%05/202412,886  13,268  0.6  12,725  
GS Acquisitionco, Inc.
One stopL + 5.75%
(a)
7.80%05/20243,320  3,419  0.1  3,279  
GS Acquisitionco, Inc.#+!~
One stopL + 5.75%
(a)
7.80%05/20243,064  3,155  0.1  3,025  
GS Acquisitionco, Inc.
One stopL + 5.75%
(a)
7.80%05/20241,918  1,976  0.1  1,895  
GS Acquisitionco, Inc.
One stopL + 5.75%
(a)
7.80%05/202452  50  —  50  
GS Acquisitionco, Inc.
One stopL + 5.75%
(a)
7.80%05/202411  10  —  9  
HealthcareSource HR, Inc.*
One stopL + 5.25%
(c)
7.35%05/202334,095  34,208  1.5  34,095  
HealthcareSource HR, Inc.(5)
One stopL + 5.25%
N/A(6)
05/2023—  (2) —  —  
See Notes to Consolidated Financial Statements.
41

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Diversified/Conglomerate Service - (continued)
HSI Halo Acquisition, Inc.#+!~
One stopL + 5.75%
(c)
7.87%08/2026$4,133  $4,187  0.2  %$4,092  
HSI Halo Acquisition, Inc.
One stopL + 5.75%
N/A(6)
09/2025—  —  —  —  
HSI Halo Acquisition, Inc.(5)
One stopL + 5.75%
N/A(6)
08/2026—  (6) —  (7) 
Hydraulic Authority III Limited#!~(8)(9)(10)
One stopL + 6.00%
(i)(j)
7.00%11/202512,439  12,686  0.5  12,102  
Hydraulic Authority III Limited(8)(9)(10)
One stopN/A11.00% PIK11/2028179  184  —  175  
Hydraulic Authority III Limited(8)(9)(10)
One stopL + 6.00%
(i)
8.10%11/202524  24  —  24  
ICIMS, Inc.#!~
One stopL + 6.50%
(a)
8.56%09/202414,355  14,597  0.7  14,355  
ICIMS, Inc.#!~
One stopL + 6.50%
(a)
8.56%09/20244,501  4,595  0.2  4,501  
ICIMS, Inc.(5)
One stopL + 6.50%
N/A(6)
09/2024—  (1) —  —  
III US Holdings, LLC
One stopL + 6.00%
N/A(6)
09/2022—  —  —  —  
Imprivata, Inc.*#+!~
Senior loanL + 4.00%
(c)
6.10%10/202313,185  13,427  0.6  13,185  
Imprivata, Inc.(5)
Senior loanL + 4.00%
N/A(6)
10/2023—  (1) —  —  
Infogix, Inc.*
One stopL + 6.50%
(c)
8.60%04/20247,252  7,419  0.3  7,107  
Infogix, Inc.*+
One stopL + 6.50%
(c)
8.60%04/20241,119  1,140  0.1  1,096  
Infogix, Inc.
One stopL + 6.50%
(c)
8.60%04/202428  27  —  26  
Integral Ad Science, Inc.#!~
One stopL + 7.25%
(a)
8.05% cash/1.25% PIK07/202414,751  15,006  0.7  14,751  
Integral Ad Science, Inc.(5)
One stopL + 6.00%
N/A(6)
07/2023—  (3) —  (4) 
Integration Appliance, Inc.^*#!~
One stopL + 7.25%
(c)
9.43%08/202368,335  69,389  3.1  68,335  
Integration Appliance, Inc.
One stopL + 7.25%
(a)
9.29%08/2023487  482  —  487  
Internet Truckstop Group LLC*
One stopL + 5.50%
(c)
7.61%04/202522,816  23,521  1.0  22,816  
Internet Truckstop Group LLC(5)
One stopL + 5.50%
N/A(6)
04/2025—  (3) —  —  
Invoice Cloud, Inc.
One stopL + 6.50%
(c)
5.43% cash/3.25% PIK02/20246,309  6,360  0.3  6,309  
Invoice Cloud, Inc.
One stopL + 6.00%
N/A(6)
02/2024—  —  —  —  
Invoice Cloud, Inc.(5)
One stopL + 6.00%
N/A(6)
02/2024—  (1) —  —  
JAMF Holdings, Inc.#!~
One stopL + 7.00%
(c)
9.18%11/202213,559  13,806  0.6  13,559  
JAMF Holdings, Inc.
One stopL + 7.00%
(a)
9.05%11/202236  36  —  36  
Kareo, Inc.
One stopL + 9.00%
(a)
11.04%06/202210,273  10,453  0.5  10,350  
Kareo, Inc.
One stopL + 9.00%
(a)
11.04%06/2022940  963  —  948  
Kareo, Inc.
One stopL + 9.00%
(a)
11.04%06/2022753  772  —  759  
Kareo, Inc.
One stopL + 9.00%
N/A(6)
06/2022—  —  —  —  
Kaseya Traverse Inc*
One stopL + 6.50%
(c)(d)
7.72% cash/1.00% PIK05/202533,149  34,346  1.5  33,149  
Kaseya Traverse Inc
One stopL + 6.50%
(c)(d)
7.69% cash/1.00% PIK05/2025498  519  —  498  
Kaseya Traverse Inc
One stopL + 6.50%
(c)
8.60%05/202552  51  —  52  
Keais Records Service, LLC
One stopL + 4.50%
(a)
6.54%10/202418,076  18,388  0.8  18,076  
Keais Records Service, LLC(5)
One stopL + 4.50%
N/A(6)
10/2024—  (1) —  —  
Keais Records Service, LLC
One stopL + 4.50%
N/A(6)
10/2024—  —  —  —  
Learn-it Systems, LLC
Senior loanL + 4.50%
(c)
6.65%03/20252,567  2,631  0.1  2,567  
Learn-it Systems, LLC
Senior loanL + 4.50%
(c)
6.61%03/202533  32  —  33  
Learn-it Systems, LLC
Senior loanL + 4.50%
(a)(c)(f)
7.04%03/202526  26  —  26  
Litera Bidco LLC#+!~
One stopL + 5.75%
(c)(d)
7.95%05/20263,379  3,411  0.2  3,379  
Litera Bidco LLC
One stopL + 5.75%
(c)(d)
7.96%05/2026705  735  —  705  
Litera Bidco LLC
One stopL + 5.75%
(c)(d)
7.96%05/2026705  734  —  705  
Litera Bidco LLC
One stopL + 5.75%
N/A(6)
05/2025—  —  —  —  
Maverick Bidco Inc.*#!~
One stopL + 6.25%
(c)
8.35%04/202339,870  40,173  1.8  39,073  
Maverick Bidco Inc.*
One stopL + 6.25%
(c)
8.35%04/20233,215  3,289  0.1  3,151  
Maverick Bidco Inc.
One stopL + 6.25%
(c)
8.55%04/202368  65  —  62  
MetricStream, Inc.
One stopL + 7.00%
(a)
9.04%05/20249,131  9,232  0.4  9,192  
MetricStream, Inc.
One stopL + 7.00%
N/A(6)
05/2024—  1  —  2  
See Notes to Consolidated Financial Statements.
42

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Diversified/Conglomerate Service - (continued)
MetricStream, Inc.
One stopL + 7.00%
N/A(6)
04/2024$—  $12  —  %$14  
Mindbody, Inc.#!~
One stopL + 7.00%
(a)
9.06%02/202548,351  49,317  2.2  48,351  
Mindbody, Inc.(5)
One stopL + 7.00%
N/A(6)
02/2025—  (1) —  —  
Ministry Brands, LLC+
Senior loanL + 4.00%
(a)
6.04%12/20221,460  1,484  0.1  1,460  
Ministry Brands, LLC+
Senior loanL + 4.00%
(a)
6.04%12/2022836  849  —  836  
Ministry Brands, LLC
Senior loanL + 4.00%
(a)
6.04%12/2022381  397  —  381  
MMan Acquisition Co.^*+
One stopL + 3.50%
(c)
3.26% cash/2.50% PIK08/202322,428  19,646  0.8  16,798  
Namely, Inc.#!~
One stopL + 7.50%
(a)
6.25% cash/1.25% PIK06/20243,546  3,589  0.2  3,546  
Namely, Inc.
One stopL + 6.25%
N/A(6)
06/2024—  —  —  —  
Namely, Inc.(5)
One stopL + 6.25%
N/A(6)
06/2024—  (16) —  —  
Net Health Acquisition Corp.*
One stopL + 5.50%
(c)
7.60%12/20238,642  8,775  0.4  8,555  
Net Health Acquisition Corp.#+!~
One stopL + 5.50%
(c)
7.60%12/20236,914  7,069  0.3  6,845  
Net Health Acquisition Corp.*
One stopL + 5.50%
(c)
7.60%12/20231,207  1,227  0.1  1,195  
Net Health Acquisition Corp.(5)
One stopL + 5.50%
N/A(6)
12/2023—  (2) —  (2) 
Netsmart Technologies, Inc.(5)
Senior loanL + 4.75%
N/A(6)
04/2021—  (4) —  (2) 
Nextech Holdings, LLC#+!~
One stopL + 5.50%
(a)
7.54%06/20254,052  4,132  0.2  4,052  
Nextech Holdings, LLC
One stopL + 5.50%
(a)
7.54%06/2025100  96  —  100  
Nextech Holdings, LLC(5)
One stopL + 5.50%
N/A(6)
06/2025—  (23) —  —  
Nexus Brands Group, Inc.*
One stopL + 6.00%
(c)
8.12%11/20239,474  9,597  0.4  9,474  
Nexus Brands Group, Inc.#+!~(8)(9)
One stopN/A7.00%11/20237,240  7,396  0.3  7,060  
Nexus Brands Group, Inc.
One stopL + 6.00%
(c)
8.10%11/20232,007  2,091  0.1  2,007  
Nexus Brands Group, Inc.#!~
One stopL + 6.00%
(c)
8.10%11/20231,452  1,513  0.1  1,452  
Nexus Brands Group, Inc.
One stopL + 6.00%
(a)(c)
8.13%11/2023160  162  —  160  
Nexus Brands Group, Inc.(8)(9)
One stopN/A
N/A(6)
11/2023—  —  —  —  
Nexus Brands Group, Inc.(5)(8)(9)
One stopN/A
N/A(6)
11/2023—  (1) —  —  
Nexus Brands Group, Inc.(5)
One stopL + 6.00%
N/A(6)
11/2023—  (1) —  —  
Personify, Inc.*+
One stopL + 5.75%
(c)
7.85%09/202415,614  15,933  0.7  15,614  
Personify, Inc.
One stopL + 5.75%
(c)
7.85%09/202440  40  —  40  
PlanSource Holdings, Inc.#!~
One stopL + 6.25%
(c)
8.81%04/20259,330  9,516  0.4  9,330  
PlanSource Holdings, Inc.(5)
One stopL + 6.25%
N/A(6)
04/2025—  (1) —  —  
Project Power Buyer, LLC#+!~
One stopL + 5.75%
(c)
7.86%05/202611,613  11,860  0.5  11,613  
Project Power Buyer, LLC(5)
One stopL + 5.75%
N/A(6)
05/2025—  (1) —  —  
Property Brands, Inc.
One stopL + 6.00%
(a)
8.04%01/202420,049  20,296  0.9  20,049  
Property Brands, Inc.*
One stopL + 6.00%
(a)
8.04%01/20246,720  6,861  0.3  6,720  
Property Brands, Inc.^
One stopL + 6.00%
(a)
8.04%01/20243,276  3,413  0.2  3,276  
Property Brands, Inc.
One stopL + 6.00%
(a)
8.04%01/20241,438  1,496  0.1  1,438  
Property Brands, Inc.
One stopL + 6.00%
(a)
8.04%01/20241,218  1,267  0.1  1,218  
Property Brands, Inc.
One stopL + 6.00%
(a)
8.04%01/20241,200  1,251  0.1  1,200  
Property Brands, Inc.
One stopL + 6.00%
(a)
8.04%01/2024507  527  —  507  
Property Brands, Inc.(5)
One stopL + 6.00%
N/A(6)
01/2024—  (1) —  —  
Property Brands, Inc.(5)
One stopL + 6.00%
N/A(6)
01/2024—  (4) —  —  
Qgenda Intermediate Holdings, LLC+
One stopL + 4.75%
(a)
6.79%06/202515,432  15,453  0.7  15,432  
Qgenda Intermediate Holdings, LLC(5)
One stopL + 4.75%
N/A(6)
06/2025—  (2) —  —  
RegEd Aquireco, LLC+
Senior loanL + 4.25%
(a)
6.29%12/202411,532  11,527  0.5  11,532  
RegEd Aquireco, LLC
Senior loanP + 3.25%
(f)
8.25%12/202458  58  —  58  
RegEd Aquireco, LLC(5)
Senior loanL + 4.25%
N/A(6)
12/2024—  (5) —  —  
Saba Software, Inc.^*#+!~
Senior loanL + 4.50%
(b)
6.59%05/202349,189  50,222  2.2  49,189  
Saba Software, Inc.#+!~
Senior loanL + 4.50%
(b)
6.59%05/202311,011  11,140  0.5  11,011  
See Notes to Consolidated Financial Statements.
43

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Diversified/Conglomerate Service - (continued)
Saba Software, Inc.(5)
Senior loanL + 4.50%
N/A(6)
05/2023$—  $(2) —  %$—  
SnapLogic, Inc.
One stopL + 8.75%
(a)
5.29% cash/5.50% PIK09/20245,734  5,650  0.3  5,671  
SnapLogic, Inc.
One stopL + 3.25%
N/A(6)
09/2024—  —  —  —  
SnapLogic, Inc.
One stopL + 3.25%
N/A(6)
09/2024—  —  —  —  
Telesoft, LLC*
One stopL + 5.00%
(c)
7.32%07/20227,276  7,437  0.3  7,276  
Telesoft, LLC
One stopL + 5.00%
N/A(6)
07/2022—  —  —  —  
TI Intermediate Holdings, LLC+
Senior loanL + 4.50%
(a)
6.54%12/20243,553  3,624  0.2  3,553  
TI Intermediate Holdings, LLC
Senior loanL + 4.50%
N/A(6)
12/2024—  —  —  —  
Transact Holdings, Inc.#+!~
Senior loanL + 4.75%
(c)
7.01%04/20263,110  3,160  0.1  3,094  
Transaction Data Systems, Inc.*#+!~
One stopL + 5.25%
(a)
7.30%06/202184,331  86,275  3.8  84,331  
Transaction Data Systems, Inc.
One stopL + 5.25%
(a)
7.30%06/2021130  133  —  130  
Trintech, Inc.^*
One stopL + 6.50%
(c)
8.76%12/202322,629  23,071  1.0  22,629  
Trintech, Inc.^
One stopL + 6.50%
(c)
8.76%12/20239,383  9,625  0.4  9,383  
Trintech, Inc.
One stopL + 6.50%
(c)
8.69%12/2023120  122  —  120  
True Commerce, Inc.^#+!~
One stopL + 5.75%
(c)
7.85%11/202315,428  15,776  0.7  15,428  
True Commerce, Inc.+(8)(9)
One stopL + 5.75%
(c)
7.85%11/20232,616  2,735  0.1  2,572  
True Commerce, Inc.(8)
One stopL + 5.75%
(c)
7.85%11/2023919  960  —  919  
True Commerce, Inc.(5)
One stopL + 5.75%
N/A(6)
11/2023—  (1) —  —  
Upserve, Inc.#!~
One stopL + 5.50%
(a)
7.54%07/20235,141  5,222  0.2  5,141  
Upserve, Inc.
One stopL + 5.50%
(a)
7.54%07/20231,451  1,511  0.1  1,451  
Upserve, Inc.
One stopL + 5.50%
N/A(6)
07/2023—  —  —  —  
Vector CS Midco Limited & Cloudsense Ltd.#!~(8)(9)(10)
One stopL + 7.25%
(c)
4.50% cash/2.75% PIK05/20247,608  7,758  0.3  7,322  
Vector CS Midco Limited & Cloudsense Ltd.(5)(8)(9)(10)
One stopL + 4.50%
N/A(6)
05/2024—  (1) —  —  
Velocity Technology Solutions, Inc.*
One stopL + 6.00%
(c)
8.10%12/202318,464  18,832  0.8  18,464  
Velocity Technology Solutions, Inc.(5)
One stopL + 6.00%
N/A(6)
12/2023—  (1) —  —  
Vendavo, Inc.*#!~
One stopL + 8.50%
(c)
10.62%10/202235,726  35,670  1.6  35,726  
Vendavo, Inc.
One stopP + 7.25%
(f)
12.50%10/2022332  328  —  332  
Verisys Corporation*
One stopL + 6.50%
(c)
8.60%01/20238,555  8,736  0.4  8,555  
Verisys Corporation(5)
One stopL + 6.50%
N/A(6)
01/2023—  (1) —  —  
Workforce Software, LLC#!~
One stopL + 6.50%
(c)
7.76% cash/1.00% PIK07/202527,059  27,903  1.2  26,787  
Workforce Software, LLC(5)
One stopL + 6.50%
N/A(6)
07/2025—  (3) —  (2) 
1,419,537  1,439,750  63.2  1,409,960  
Ecological
Pace Analytical Services, LLC
One stopL + 5.50%
(a)
7.54%09/202229,947  30,387  1.3  29,947  
Pace Analytical Services, LLC^
One stopL + 5.50%
(a)
7.54%09/20222,785  2,833  0.1  2,785  
Pace Analytical Services, LLC
One stopL + 5.50%
(a)
7.54%09/20221,668  1,735  0.1  1,668  
Pace Analytical Services, LLC*
One stopL + 5.50%
(a)
7.54%09/20221,534  1,565  0.1  1,534  
Pace Analytical Services, LLC^
One stopL + 5.50%
(a)
7.54%09/20221,235  1,284  0.1  1,235  
Pace Analytical Services, LLC
One stopL + 5.50%
(a)
7.54%09/2022836  851  —  836  
Pace Analytical Services, LLC*
One stopL + 5.50%
(a)
7.54%09/2022684  696  —  684  
Pace Analytical Services, LLC
One stopL + 5.50%
(a)
7.54%09/2022566  588  —  566  
Pace Analytical Services, LLC
One stopL + 5.50%
(a)
7.54%09/2022190  197  —  190  
Pace Analytical Services, LLC
One stopL + 5.50%
(a)
7.54%09/202240  39  —  40  
WRE Holding Corp.*
Senior loanL + 5.00%
(a)(c)
7.25%01/20232,300  2,352  0.1  2,300  
WRE Holding Corp.#!~
Senior loanL + 5.00%
(a)(c)
7.25%01/2023949  990  —  949  
WRE Holding Corp.
Senior loanL + 5.00%
(a)(c)
7.25%01/2023314  327  —  314  
See Notes to Consolidated Financial Statements.
44

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Ecological - (continued)
WRE Holding Corp.
Senior loanL + 5.00%
(a)(c)(f)
7.23%01/2023$28  $29  —  %$28  
43,076  43,873  1.8  43,076  
Electronics
Appriss Holdings, Inc.#+!~
One stopL + 5.50%
(c)
7.60%06/202625,221  26,050  1.1  25,221  
Appriss Holdings, Inc.(5)
One stopL + 5.50%
 
N/A(6)
06/2025—  (4) —  —  
Compusearch Software Holdings, Inc.^#+!~
Senior loanL + 4.25%
(c)
6.35%05/20212,979  3,020  0.1  2,979  
Diligent Corporation*+
One stopL + 5.50%
(c)(d)
7.56%04/202235,807  37,168  1.6  35,807  
Diligent Corporation*#!~
One stopL + 5.50%
(c)(d)
7.56%04/202225,868  25,670  1.2  25,868  
Diligent Corporation#!~
One stopL + 5.50%
(c)(d)
7.56%04/202212,538  12,841  0.6  12,538  
Diligent Corporation^*
One stopL + 5.50%
(c)(d)
7.56%04/202211,308  11,675  0.5  11,308  
Diligent Corporation
One stopL + 5.50%
(c)(d)
7.73%04/2022697  723  —  697  
Diligent Corporation
One stopL + 5.50%
(c)
7.81%04/2022489  508  —  489  
Diligent Corporation
One stopL + 5.50%
(c)(d)
7.64%04/2022285  287  —  285  
Diligent Corporation#!~
One stopL + 5.50%
(c)(d)
7.56%04/2022101  100  —  101  
Diligent Corporation#!~
One stopL + 5.50%
(c)(d)
7.56%04/202280  79  —  80  
Diligent Corporation
One stopL + 5.50%
(c)
7.81%04/202239  38  —  39  
Diligent Corporation#!~
One stopL + 5.50%
(c)(d)
7.56%04/202236  35  —  36  
Episerver, Inc.#~!(8)(9)
One stopL + 6.00%
(a)
6.00%10/202420,821  21,208  0.9  20,139  
Episerver, Inc.*
One stopL + 5.75%
(a)
7.79%10/202412,310  12,545  0.6  12,310  
Episerver, Inc.(5)
One stopL + 5.75%
N/A(6)
10/2024—  (2) —  —  
Gamma Technologies, LLC^*#!~
One stopL + 5.25%
(a)
7.29%06/202433,411  33,814  1.5  33,411  
Gamma Technologies, LLC(5)
One stopL + 5.25%
N/A(6)
06/2024—  (1) —  —  
SEI, Inc.*
Senior loanL + 4.75%
(a)
6.79%07/20239,575  9,805  0.4  9,575  
Silver Peak Systems, Inc.
One stopL + 7.00%
(a)
9.03%04/20245,998  6,018  0.3  6,004  
Silver Peak Systems, Inc.
One stopL + 7.00%
N/A(6)
04/2024—  —  —  —  
Sloan Company, Inc., The+(7)
One stopL + 8.50%
(c)
10.60%04/20209,839  8,623  0.3  6,070  
Sloan Company, Inc., The(7)
One stopL + 8.50%
(c)
10.60%04/2020659  578  —  406  
Sloan Company, Inc., The(7)
One stopL + 8.50%
(c)
10.60%04/2020297  298  —  303  
Sloan Company, Inc., The(7)
One stopL + 8.50%
(c)
10.60%04/2020104  85  —  64  
Sovos Compliance*+
One stopL + 4.75%
(a)
6.79%04/202419,614  20,308  0.9  19,614  
Sovos Compliance
Second lienN/A12.00% PIK04/20258,843  9,133  0.4  8,843  
Sovos Compliance
One stopL + 4.75%
(a)
6.79%04/20241,903  1,972  0.1  1,903  
Sovos Compliance
Second lienN/A12.00% PIK04/20251,195  1,242  0.1  1,195  
Sovos Compliance
One stopL + 4.75%
(a)
6.79%04/2024768  797  —  768  
Sovos Compliance(5)
One stopL + 4.75%
N/A(6)
04/2024—  (2) —  —  
Watchfire Enterprises, Inc.
Second lienL + 8.00%
(c)
10.10%10/20219,435  9,370  0.4  9,435  
250,220  253,981  11.0  245,488  
Finance
Institutional Shareholder Services#!~
Senior loanL + 4.50%
(c)
6.60%03/202618,965  19,421  0.8  18,775  
Institutional Shareholder Services
Senior loanL + 4.50%
(c)
6.60%03/2024116  111  —  108  
19,081  19,532  0.8  18,883  
Grocery
Teasdale Quality Foods, Inc.+
Senior loanL + 5.75%
(c)
7.85%10/2020354  348  —  319  
Teasdale Quality Foods, Inc.
Senior loanL + 5.75%
(c)
7.85%10/2020102  96  —  92  
456  444  —  411  
Healthcare, Education and Childcare
Active Day, Inc.
One stopL + 6.50%
(c)
8.60%12/202124,420  24,768  1.1  24,420  
Active Day, Inc.^
One stopL + 6.50%
(c)
8.60%12/20211,884  1,915  0.1  1,884  
See Notes to Consolidated Financial Statements.
45

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Healthcare, Education and Childcare - (continued)
Active Day, Inc.*
One stopL + 6.50%
(c)
8.60%12/2021$1,215  $1,235  0.1  %$1,215  
Active Day, Inc.
Senior loanL + 6.50%
(c)
8.60%12/2021967  1,006  —  967  
Active Day, Inc.*
One stopL + 6.50%
(c)
8.60%12/2021839  852  —  839  
Active Day, Inc.
One stopL + 6.50%
(c)(f)
8.60%12/202170  70  —  70  
Active Day, Inc.(5)
One stopL + 6.50%
N/A(6)
12/2021—  (1) —  —  
Acuity Eyecare Holdings, LLC
One stopL + 6.25%
(c)
8.37%03/20235,990  6,108  0.3  5,990  
Acuity Eyecare Holdings, LLC
One stopL + 6.25%
(b)(c)
8.43%03/20235,643  5,799  0.3  5,643  
Acuity Eyecare Holdings, LLC^
One stopL + 6.25%
(c)
8.35%03/20233,293  3,434  0.1  3,293  
Acuity Eyecare Holdings, LLC
One stopL + 6.25%
(c)
8.39%03/20231,593  1,656  0.1  1,593  
Acuity Eyecare Holdings, LLC
One stopL + 6.25%
(c)
8.42%03/2023796  830  —  796  
Acuity Eyecare Holdings, LLC
One stopL + 6.25%
N/A(6)
03/2023—  —  —  —  
ADCS Clinics Intermediate Holdings, LLC+
One stopL + 5.75%
(a)
7.79%05/202242,312  42,976  1.9  42,312  
ADCS Clinics Intermediate Holdings, LLC*
One stopL + 5.75%
(a)
7.79%05/2022212  216  —  212  
ADCS Clinics Intermediate Holdings, LLC*
One stopL + 5.75%
(a)
7.85%05/2022164  167  —  164  
ADCS Clinics Intermediate Holdings, LLC*
One stopL + 5.75%
(a)
7.79%05/202262  64  —  62  
ADCS Clinics Intermediate Holdings, LLC
One stopL + 5.75%
(a)
7.79%05/202230  30  —  30  
Advanced Pain Management Holdings, Inc.+(7)
Senior loanL + 5.00%
(c)
7.10%12/20195,261  3,281  0.1  3,157  
Advanced Pain Management Holdings, Inc.(7)
Senior loanL + 8.50%
(c)
10.60%12/20191,823  3  —  3  
Advanced Pain Management Holdings, Inc.+(7)
Senior loanL + 5.00%
(c)
7.10%12/2019360  225  —  216  
Advanced Pain Management Holdings, Inc.(5)(7)
Senior loanL + 5.00%
(c)
7.10%12/2019164  (7) —  (7) 
Agilitas USA, Inc.*
One stopL + 5.00%
(c)
7.32%04/202210,206  10,252  0.5  10,206  
Agilitas USA, Inc.
One stopL + 5.00%
(c)
7.32%04/202220  20  —  20  
Apothecary Products, LLC+
Senior loanL + 4.50%
(c)
6.70%07/20233,086  3,228  0.1  3,086  
Apothecary Products, LLC
Senior loanL + 4.50%
N/A(6)
07/2023—  —  —  —  
Aris Teleradiology Company, LLC+(7)
Senior loanL + 5.50%
(c)
7.60%03/20215,403  3,244  0.1  1,149  
Aris Teleradiology Company, LLC(7)
Senior loanL + 5.50%
(b)(c)(d)
7.66%03/20211,084  684  —  220  
Aspen Medical Products, LLC#+!~
One stopL + 5.25%
(a)(c)
7.30%06/20254,303  4,389  0.2  4,303  
Aspen Medical Products, LLC
One stopL + 5.25%
N/A(6)
06/2025—  —  —  —  
BIO18 Borrower, LLC
One stopL + 5.25%
(a)
7.30%11/202411,188  11,231  0.5  11,188  
BIO18 Borrower, LLC
One stopL + 5.25%
(a)
7.30%11/202466  66  —  66  
BIO18 Borrower, LLC(5)
One stopL + 5.25%
N/A(6)
11/2024—  (4) —  —  
BIOVT, LLC^*
One stopL + 5.75%
(a)
7.79%01/202134,487  35,136  1.6  34,487  
BIOVT, LLC#!~
One stopL + 5.75%
(a)
7.79%01/20212,094  2,179  0.1  2,094  
BIOVT, LLC
One stopL + 5.75%
(a)
7.79%01/20211,966  2,045  0.1  1,966  
BIOVT, LLC
One stopL + 5.75%
N/A(6)
01/2021—  —  —  —  
BIOVT, LLC
One stopL + 5.75%
N/A(6)
01/2021—  —  —  —  
Blades Buyer, Inc.#+!~
Senior loanL + 4.50%
(b)(c)
6.75%08/20252,848  2,879  0.1  2,827  
Blades Buyer, Inc.
Senior loanL + 4.50%
N/A(6)
08/2025—  —  —  —  
Blades Buyer, Inc.(5)
Senior loanL + 4.50%
N/A(6)
08/2025—  (8) —  (8) 
CLP Healthcare Services, Inc.^
Senior loanL + 5.25%
(c)
7.37%12/20204,762  4,788  0.2  4,762  
CMI Parent Inc.#+!~
Senior loanL + 4.25%
(a)
6.29%08/20256,700  6,852  0.3  6,634  
CMI Parent Inc.(5)
Senior loanL + 4.25%
N/A(6)
08/2025—  (2) —  (4) 
CRH Healthcare Purchaser, Inc.#+!~
Senior loanL + 4.50%
(c)
6.60%12/202414,011  14,203  0.6  14,011  
CRH Healthcare Purchaser, Inc.(5)
Senior loanL + 4.50%
N/A(6)
12/2024—  (1) —  —  
CRH Healthcare Purchaser, Inc.(5)
Senior loanL + 4.50%
N/A(6)
12/2024—  (3) —  —  
DCA Investment Holding, LLC^*+
One stopL + 5.25%
(c)
7.35%07/202131,737  32,216  1.4  31,737  
DCA Investment Holding, LLC^*#+!~
One stopL + 5.25%
(c)
7.35%07/202127,496  28,087  1.2  27,496  
DCA Investment Holding, LLC*
One stopL + 5.25%
(c)
7.35%07/20218,405  8,655  0.4  8,405  
See Notes to Consolidated Financial Statements.
46

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Healthcare, Education and Childcare - (continued)
DCA Investment Holding, LLC
One stopL + 5.25%
(c)
7.35%07/2021$4,074  $4,244  0.2  %$4,074  
DCA Investment Holding, LLC
One stopL + 5.25%
(c)
7.35%07/20213,706  3,860  0.2  3,706  
DCA Investment Holding, LLC*
One stopL + 5.25%
(c)
7.35%07/20212,537  2,643  0.1  2,537  
DCA Investment Holding, LLC
One stopL + 5.25%
(c)
7.35%07/2021678  706  —  678  
DCA Investment Holding, LLC
One stopP + 4.25%
(f)
9.25%07/2021309  303  —  309  
DCA Investment Holding, LLC*
One stopL + 5.25%
(c)
7.35%07/2021300  306  —  300  
DCA Investment Holding, LLC*
One stopL + 5.25%
(c)
7.35%07/202194  95  —  94  
Deca Dental Management LLC^*
One stopL + 6.00%
(c)
8.10%12/202111,386  11,690  0.5  11,386  
Deca Dental Management LLC#!~
One stopL + 6.00%
(a)(c)
8.11%12/20211,385  1,423  0.1  1,385  
Deca Dental Management LLC#+!~
One stopL + 6.00%
(c)
8.10%12/2021999  1,026  0.1  999  
Deca Dental Management LLC
One stopL + 6.00%
(a)(c)
8.21%12/2021741  771  —  741  
Deca Dental Management LLC
One stopL + 6.00%
(a)(c)
8.12%12/202132  31  —  32  
Deca Dental Management LLC
One stopL + 6.00%
N/A(6)
12/2021—  —  —  —  
Dental Holdings Corporation
One stopL + 6.00%
(c)
8.12%02/202010,226  10,340  0.5  10,226  
Dental Holdings Corporation*
One stopL + 6.00%
(c)
8.12%02/20201,632  1,651  0.1  1,632  
Dental Holdings Corporation
One stopL + 6.00%
(c)
8.12%02/2020828  837  —  828  
Elite Dental Partners LLC*
One stopL + 5.25%
(a)
7.29%06/202314,145  13,994  0.6  13,437  
Elite Dental Partners LLC
One stopL + 5.25%
(a)
7.29%06/20231,874  1,862  0.1  1,781  
Elite Dental Partners LLC
One stopL + 5.25%
(a)
7.29%06/20231,757  1,746  0.1  1,669  
Elite Dental Partners LLC#+!~
One stopL + 5.25%
(a)
7.29%06/20231,676  1,665  0.1  1,592  
Elite Dental Partners LLC#!~
One stopL + 5.25%
(a)
7.29%06/20231,607  1,596  0.1  1,527  
Elite Dental Partners LLC
One stopL + 5.25%
(a)
7.29%06/2023200  198  —  190  
Elite Dental Partners LLC(5)
One stopL + 5.25%
N/A(6)
06/2023—  (6) —  —  
ERG Buyer, LLC*
One stopL + 5.50%
(c)
7.60%05/202419,330  19,265  0.8  18,749  
ERG Buyer, LLC
One stopP + 4.50%
(f)
9.50%05/202420  14  —  12  
ERG Buyer, LLC(5)
One stopL + 5.50%
N/A(6)
05/2024—  (9) —  —  
eSolutions, Inc.^*+
One stopL + 6.50%
(a)
8.54%03/202270,456  71,662  3.2  70,456  
eSolutions, Inc.
One stopL + 6.50%
(d)
8.56%03/2022100  100  —  100  
Excelligence Learning Corporation^
One stopL + 6.00%
(a)
8.04%04/202310,171  9,808  0.4  9,154  
Eyecare Services Partners Holdings LLC+
One stopL + 6.25%
(c)
8.35%05/202318,129  18,252  0.8  17,766  
Eyecare Services Partners Holdings LLC*
One stopL + 6.25%
(c)
8.35%05/20237,951  8,126  0.4  7,792  
Eyecare Services Partners Holdings LLC*
One stopL + 6.25%
(c)
8.35%05/20236,964  7,125  0.3  6,825  
Eyecare Services Partners Holdings LLC*+
One stopL + 6.25%
(c)
8.35%05/20232,377  2,432  0.1  2,330  
Eyecare Services Partners Holdings LLC
One stopL + 6.25%
(c)
8.55%05/20232,027  2,064  0.1  1,986  
Eyecare Services Partners Holdings LLC*
One stopL + 6.25%
(c)
8.35%05/20231,526  1,561  0.1  1,495  
Eyecare Services Partners Holdings LLC*
One stopL + 6.25%
(c)
8.35%05/20231,128  1,155  0.1  1,106  
Eyecare Services Partners Holdings LLC*
One stopL + 6.25%
(c)
8.35%05/2023994  1,017  —  974  
Eyecare Services Partners Holdings LLC*+
One stopL + 6.25%
(c)
8.35%05/2023641  654  —  629  
Eyecare Services Partners Holdings LLC
One stopL + 6.25%
(c)
8.51%05/2023200  198  —  192  
G & H Wire Company, Inc.^
One stopL + 5.75%
(a)
7.79%09/20235,980  5,980  0.3  5,980  
G & H Wire Company, Inc.(5)
One stopL + 5.75%
N/A(6)
09/2022—  (1) —  —  
Immucor, Inc.+
Senior loanL + 5.00%
(c)
7.10%06/20213,594  3,672  0.2  3,598  
Joerns Healthcare, LLC^*
One stopL + 6.00%
(c)
8.16%08/2024535  506  —  535  
Joerns Healthcare, LLC^*
One stopL + 6.00%
(c)
8.16%08/2024514  506  —  514  
Katena Holdings, Inc.^
One stopL + 5.50%
(c)
7.60%06/202112,863  13,026  0.6  12,863  
Katena Holdings, Inc.^
One stopL + 5.50%
(c)
7.60%06/20211,256  1,273  0.1  1,256  
Katena Holdings, Inc.
One stopL + 5.50%
(c)
7.60%06/2021860  869  —  860  
Katena Holdings, Inc.
One stopP + 4.50%
(f)
9.50%06/202180  82  —  80  
See Notes to Consolidated Financial Statements.
47

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Healthcare, Education and Childcare - (continued)
Krueger-Gilbert Health Physics, LLC#!~
One stopL + 4.75%
(c)
6.85%05/2025$2,383  $2,368  0.1  %$2,383  
Krueger-Gilbert Health Physics, LLC
One stopL + 4.75%
(b)(c)
7.02%05/20251,125  1,171  0.1  1,125  
Krueger-Gilbert Health Physics, LLC
One stopL + 4.75%
N/A(6)
05/2025—  —  —  —  
Krueger-Gilbert Health Physics, LLC(5)
One stopL + 4.75%
N/A(6)
05/2025—  (2) —  —  
Lombart Brothers, Inc.^*#+!~(8)
One stopL + 6.25%
(c)
8.35%04/202329,259  29,693  1.3  29,259  
Lombart Brothers, Inc.^(8)(9)
One stopL + 6.25%
(c)
8.35%04/20233,150  3,196  0.1  3,150  
Lombart Brothers, Inc.
One stopP + 5.00%
(f)
10.00%04/202398  99  —  98  
Lombart Brothers, Inc.(8)(9)
One stopP + 5.00%
(f)
10.00%04/202314  15  —  14  
MD Now Holdings, Inc.+
One stopL + 5.00%
(c)
7.10%08/202414,690  14,885  0.7  14,690  
MD Now Holdings, Inc.(5)
One stopL + 5.00%
N/A(6)
08/2024—  (1) —  —  
MD Now Holdings, Inc.(5)
One stopL + 5.00%
N/A(6)
08/2024—  (1) —  —  
MWD Management, LLC & MWD Services, Inc.*
One stopL + 5.25%
(c)
7.35%06/20237,088  7,074  0.3  6,946  
MWD Management, LLC & MWD Services, Inc.^
One stopL + 5.25%
(c)
7.35%06/20234,564  4,670  0.2  4,472  
MWD Management, LLC & MWD Services, Inc.(5)
One stopL + 5.25%
N/A(6)
06/2022—  (3) —  (4) 
Oliver Street Dermatology Holdings, LLC
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/202219,200  17,574  0.6  14,400  
Oliver Street Dermatology Holdings, LLC*
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/20222,241  1,916  0.1  1,680  
Oliver Street Dermatology Holdings, LLC
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/20222,099  1,912  0.1  1,575  
Oliver Street Dermatology Holdings, LLC^+
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/20221,577  1,344  0.1  1,183  
Oliver Street Dermatology Holdings, LLC*+
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/20221,393  1,188  0.1  1,045  
Oliver Street Dermatology Holdings, LLC*+
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/20221,213  1,034  —  910  
Oliver Street Dermatology Holdings, LLC^+
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/2022944  805  —  708  
Oliver Street Dermatology Holdings, LLC*+
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/2022819  698  —  614  
Oliver Street Dermatology Holdings, LLC#+!~
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/2022505  430  —  379  
Oliver Street Dermatology Holdings, LLC
One stopL + 7.25%
(c)(f)
8.35% cash/1.00% PIK05/2022289  263  —  215  
Oliver Street Dermatology Holdings, LLC^
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/202298  89  —  74  
Oliver Street Dermatology Holdings, LLC*
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/202288  81  —  66  
Oliver Street Dermatology Holdings, LLC^
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/202270  63  —  52  
Oliver Street Dermatology Holdings, LLC^
One stopL + 7.25%
(c)
8.35% cash/1.00% PIK05/202264  59  —  48  
ONsite Mammography, LLC
One stopL + 6.75%
(a)
8.79%11/20235,842  5,920  0.3  5,842  
ONsite Mammography, LLC
One stopL + 6.75%
(a)
8.79%11/20231,031  1,075  0.1  1,031  
ONsite Mammography, LLC
One stopL + 6.75%
(a)
8.79%11/2023100  102  —  100  
Pinnacle Treatment Centers, Inc.
One stopL + 5.75%
(c)
8.01%08/202119,329  19,650  0.9  19,329  
Pinnacle Treatment Centers, Inc.#+!~
One stopL + 5.75%
(c)
8.01%08/2021716  730  —  716  
Pinnacle Treatment Centers, Inc.
One stopL + 5.75%
(c)
8.01%08/2021347  360  —  347  
Pinnacle Treatment Centers, Inc.
One stopL + 5.75%
(c)
8.01%08/2021188  193  —  188  
Pinnacle Treatment Centers, Inc.^
One stopL + 5.75%
(c)
8.01%08/2021108  111  —  108  
Pinnacle Treatment Centers, Inc.
One stopL + 5.75%
(c)(f)
8.53%08/2021102  103  —  102  
PPT Management Holdings, LLC+
One stopL + 6.75%
(a)(c)
8.10% cash/0.75% PIK12/202224,533  22,536  0.9  20,846  
PPT Management Holdings, LLC
One stopL + 6.75%
(a)(c)
8.10% cash/0.75% PIK12/2022302  285  —  256  
PPT Management Holdings, LLC
One stopL + 6.75%
(a)(c)
8.10% cash/0.75% PIK12/2022178  168  —  152  
PPT Management Holdings, LLC
One stopL + 6.75%
(a)(c)
8.10% cash/0.75% PIK12/202286  76  —  74  
PPT Management Holdings, LLC(5)
One stopL + 6.75%
(a)(c)
8.10% cash/0.75% PIK12/202216  (17) —  (46) 
Pyramid Healthcare, Inc.*+
One stopL + 6.50%
(c)
8.78%08/20201,459  1,467  0.1  1,459  
Pyramid Healthcare, Inc.
One stopL + 6.50%
(c)(f)
8.78%08/2020337  347  —  337  
Pyramid Healthcare, Inc.
One stopL + 6.50%
(c)
8.62%08/2020113  117  —  113  
See Notes to Consolidated Financial Statements.
48

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Healthcare, Education and Childcare - (continued)
Riverchase MSO, LLC*
Senior loanL + 5.75%
(c)
7.85%10/2022$9,720  $9,901  0.4  %$9,720  
Riverchase MSO, LLC
Senior loanP + 4.75%
(f)
9.75%10/202226  26  —  26  
RXH Buyer Corporation^*
One stopL + 5.75%
(c)
7.85%09/202127,814  28,193  1.3  27,814  
RXH Buyer Corporation*
One stopL + 5.75%
(c)
7.85%09/20213,147  3,192  0.1  3,147  
RXH Buyer Corporation
One stopL + 5.75%
(c)(f)
8.78%09/2021158  159  —  158  
SLMP, LLC^
One stopL + 6.00%
(a)
8.04%05/202312,073  12,176  0.5  12,073  
SLMP, LLC^
One stopL + 6.00%
(a)
8.04%05/20235,813  6,060  0.3  5,813  
SLMP, LLC
Subordinated debtN/A7.50% PIK05/2027223  229  —  223  
SLMP, LLC(5)
One stopL + 6.00%
N/A(6)
05/2023—  (1) —  —  
SLMP, LLC(5)
One stopL + 6.00%
N/A(6)
05/2023—  (1) —  —  
Spear Education, LLC^
One stopL + 5.75%
(c)
8.07%12/20197,964  8,098  0.4  7,964  
Spear Education, LLC*
One stopL + 5.75%
(c)
8.07%12/2019249  256  —  249  
Spear Education, LLC
One stopL + 5.75%
N/A(6)
12/2019—  —  —  —  
Summit Behavioral Healthcare, LLC^
Senior loanL + 4.75%
(c)
6.87%10/202311,065  10,961  0.5  10,512  
Summit Behavioral Healthcare, LLC
Senior loanL + 4.75%
(c)
6.87%10/2023180  178  —  171  
Summit Behavioral Healthcare, LLC
Senior loanL + 4.75%
(c)
6.87%10/2023144  141  —  136  
WHCG Management, LLC*
Senior loanL + 6.00%
(c)
8.10%03/20236,256  6,405  0.3  6,256  
WHCG Management, LLC
Senior loanL + 6.00%
(c)
8.11%03/2023200  204  —  200  
WHCG Management, LLC(5)
Senior loanL + 6.00%
N/A(6)
03/2023—  (4) —  —  
WIRB-Copernicus Group, Inc.^*#!~
Senior loanL + 4.25%
(c)
6.35%08/202224,583  25,145  1.1  24,583  
WIRB-Copernicus Group, Inc.(5)
Senior loanL + 4.25%
N/A(6)
08/2022—  (1) —  —  
WIRB-Copernicus Group, Inc.(5)
Senior loanL + 4.25%
N/A(6)
08/2022—  (1) —  —  
752,215  750,240  32.8  726,960  
Home and Office Furnishings, Housewares, and Durable Consumer
1A Smart Start LLC#+!~
Senior loanL + 4.50%
(a)
6.54%02/20221,389  1,412  0.1  1,389  
CST Buyer Company^
One stopL + 5.00%
(a)
7.04%03/20235,347  5,441  0.2  5,347  
CST Buyer Company
One stopL + 5.00%
N/A(6)
03/2023—  —  —  —  
Plano Molding Company, LLC^+
One stopL + 7.00%
(a)
9.04%05/202114,748  14,698  0.6  14,158  
21,484  21,551  0.9  20,894  
Hotels, Motels, Inns, and Gaming
Davidson Hotel Company, LLC+
One stopL + 5.25%
(a)(c)
7.29%07/20248,544  8,476  0.4  8,459  
Davidson Hotel Company, LLC(5)
One stopL + 5.25%
N/A(6)
07/2024—  (13) —  (27) 
Davidson Hotel Company, LLC(5)
One stopL + 5.25%
N/A(6)
07/2024—  —  —  (11) 
Davidson Hotel Company, LLC(5)
One stopL + 5.25%
N/A(6)
07/2024—  —  —  (2) 
8,544  8,463  0.4  8,419  
Insurance
Captive Resources Midco, LLC^*#+!~
One stopL + 6.00%
(c)
8.20%05/202554,907  55,075  2.5  54,907  
Captive Resources Midco, LLC(5)
One stopL + 6.00%
N/A(6)
05/2025—  (28) —  —  
Captive Resources Midco, LLC(5)
One stopL + 6.00%
N/A(6)
05/2025—  (27) —  —  
Integrity Marketing Acquisition, LLC#+!~
Senior loanL + 5.75%
(c)
7.88%08/20252,489  2,490  0.1  2,452  
Integrity Marketing Acquisition, LLC
Senior loanL + 5.75%
N/A(6)
08/2025—  —  —  —  
Integrity Marketing Acquisition, LLC(5)
Senior loanL + 5.75%
N/A(6)
08/2025—  (5) —  (12) 
Integrity Marketing Acquisition, LLC(5)
Senior loanL + 5.75%
N/A(6)
08/2025—  (3) —  (8) 
J.S. Held Holdings, LLC#+!~
One stopL + 6.00%
(c)
8.10%07/20252,930  2,944  0.1  2,930  
J.S. Held Holdings, LLC
One stopP + 5.00%
(f)
10.00%07/202528  21  —  28  
J.S. Held Holdings, LLC(5)
One stopL + 6.00%
N/A(6)
07/2025—  (38) —  —  
Orchid Underwriters Agency, LLC#+!~
Senior loanL + 4.50%
(c)
6.70%12/20244,231  4,295  0.2  4,231  
Orchid Underwriters Agency, LLC
Senior loanL + 4.50%
N/A(6)
12/2024—  —  —  —  
See Notes to Consolidated Financial Statements.
49

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Insurance - (continued)
Orchid Underwriters Agency, LLC(5)
Senior loanL + 4.50%
N/A(6)
12/2024$—  $(1) —  %$—  
RSC Acquisition, Inc.#+!~
Senior loanL + 4.25%
(a)(b)(c)(f)
6.40%11/202236,746  38,166  1.7  36,746  
RSC Acquisition, Inc.*
Senior loanL + 4.25%
(b)
6.40%11/20222,280  2,261  0.1  2,280  
RSC Acquisition, Inc.
Senior loanL + 4.25%
N/A(6)
11/2021—  —  —  —  
RSC Acquisition, Inc.(5)
Senior loanL + 4.25%
N/A(6)
11/2022—  (2) —  —  
103,611  105,148  4.7  103,554  
Leisure, Amusement, Motion Pictures, Entertainment
CR Fitness Holdings, LLC#+!~
Senior loanL + 4.25%
(a)
6.29%07/20252,019  2,033  0.1  2,019  
CR Fitness Holdings, LLC
Senior loanL + 4.25%
(c)
6.55%07/202567  61  —  67  
CR Fitness Holdings, LLC
Senior loanL + 4.25%
N/A(6)
07/2025—  —  —  —  
EOS Fitness Opco Holdings, LLC*
One stopL + 4.75%
(c)
6.85%01/20258,763  8,904  0.4  8,763  
EOS Fitness Opco Holdings, LLC
One stopL + 4.75%
(c)
6.86%01/2025334  347  —  334  
EOS Fitness Opco Holdings, LLC
One stopP + 3.75%
(f)
8.75%01/202512  11  —  12  
PADI Holdco, Inc.*
One stopL + 5.75%
(c)
7.86%04/202321,989  22,385  1.0  21,989  
PADI Holdco, Inc.#+!~(8)(9)
One stopE + 5.75%
(g)
5.75%04/202320,870  21,387  0.9  19,859  
PADI Holdco, Inc.
One stopL + 5.75%
(c)
7.96%04/2022182  185  —  182  
Planet Fit Indy 10 LLC+
One stopL + 5.25%
(c)
7.35%07/202516,828  16,721  0.8  16,828  
Planet Fit Indy 10 LLC
One stopL + 5.25%
(c)
7.46%07/20252,337  2,396  0.1  2,337  
Planet Fit Indy 10 LLC
One stopL + 5.25%
(c)
7.35%07/202530  29  —  30  
Planet Fit Indy 10 LLC(5)
One stopL + 5.25%
N/A(6)
07/2025—  (8) —  —  
Self Esteem Brands, LLC^*
Senior loanL + 4.25%
(a)
6.29%02/202230,835  31,428  1.4  30,835  
Self Esteem Brands, LLC
Senior loanP + 3.25%
(f)
8.25%02/2022490  485  —  490  
Sunshine Sub, LLC#!~
One stopL + 4.75%
(a)
6.79%05/202413,057  13,184  0.6  13,057  
Sunshine Sub, LLC
One stopL + 4.75%
(a)
6.79%05/20245,711  5,946  0.3  5,711  
Sunshine Sub, LLC(5)
One stopL + 4.75%
N/A(6)
05/2024—  (1) —  —  
Teaching Company, The*
One stopL + 4.75%
(c)
6.93%07/202317,878  18,119  0.8  17,878  
Teaching Company, The
One stopL + 4.75%
(a)(f)
6.77%07/202324  24  —  24  
Titan Fitness, LLC*
One stopL + 4.75%
(a)(c)
6.88%02/202530,625  31,165  1.4  30,625  
Titan Fitness, LLC(5)
One stopL + 4.75%
N/A(6)
02/2025—  (2) —  —  
Titan Fitness, LLC(5)
One stopL + 4.75%
N/A(6)
02/2025—  (2) —  —  
WBZ Investment LLC
One stopL + 5.50%
(a)
7.54%09/20248,525  8,597  0.4  8,525  
WBZ Investment LLC
One stopL + 5.50%
(a)
7.54%09/2024849  884  —  849  
WBZ Investment LLC
One stopL + 5.50%
(a)
7.54%09/2024457  475  —  457  
WBZ Investment LLC
One stopP + 4.50%
(f)
9.50%09/202410  10  —  10  
181,892  184,763  8.2  180,881  
Oil and Gas
Drilling Info Holdings, Inc.*#+!~
Senior loanL + 4.25%
(a)
6.29%07/202535,612  36,252  1.6  35,612  
Drilling Info Holdings, Inc.(5)
Senior loanL + 4.25%
N/A(6)
07/2023—  (2) —  —  
Drilling Info Holdings, Inc.(5)
Senior loanL + 4.25%
N/A(6)
07/2025—  (13) —  —  
35,612  36,237  1.6  35,612  
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC
One stopL + 5.50%
(c)
7.60%11/202210,337  10,503  0.5  10,337  
Georgica Pine Clothiers, LLC*
One stopL + 5.50%
(c)
7.60%11/20226,479  6,587  0.3  6,479  
Georgica Pine Clothiers, LLC^
One stopL + 5.50%
(c)
7.60%11/2022902  918  —  902  
Georgica Pine Clothiers, LLC*
One stopL + 5.50%
(c)
7.60%11/2022633  645  —  633  
Georgica Pine Clothiers, LLC
One stopL + 5.50%
(c)
7.73%11/202250  50  —  50  
IMPLUS Footwear, LLC#+!~
One stopL + 6.25%
(c)
8.35%04/202430,462  30,970  1.4  30,462  
IMPLUS Footwear, LLC#+!~
One stopL + 6.25%
(c)
8.41%04/20245,202  5,288  0.2  5,202  
See Notes to Consolidated Financial Statements.
50

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Personal and Non Durable Consumer Products (Mfg. Only) - (continued)
IMPLUS Footwear, LLC
One stopL + 6.25%
(c)
8.35%04/2024$750  $781  —  %$750  
Orthotics Holdings, Inc.*(8)
One stopL + 6.00%
(a)
8.04%05/202011,738  11,799  0.5  11,504  
Orthotics Holdings, Inc.*(8)(9)
One stopL + 6.00%
(a)
8.04%05/20201,924  1,934  0.1  1,886  
Orthotics Holdings, Inc.(5)
One stopL + 6.00%
N/A(6)
05/2020—  (1) —  —  
WU Holdco, Inc. #!~
One stopL + 5.50%
(c)
7.60%03/20263,016  3,110  0.1  3,016  
WU Holdco, Inc.
One stopL + 5.50%
(c)
7.62%03/202658  61  —  58  
WU Holdco, Inc.
One stopL + 5.50%
N/A(6)
03/2025—  —  —  —  
71,551  72,645  3.1  71,279  
Personal, Food and Miscellaneous Services
Blue River Pet Care, LLC+
One stopL + 5.00%
(c)(d)
7.04%07/202625,636  25,716  1.1  25,379  
Blue River Pet Care, LLC(5)
One stopL + 5.00%
N/A(6)
07/2026—  (129) —  (129) 
Blue River Pet Care, LLC(5)
One stopL + 5.00%
N/A(6)
08/2025—  (4) —  (4) 
Captain D's, LLC^
Senior loanL + 4.50%
(a)(c)
6.54%12/20236,021  6,078  0.3  6,021  
Captain D's, LLC
Senior loanL + 4.50%
(a)(c)(f)
7.48%12/202340  40  —  40  
Clarkson Eyecare LLC*+
One stopL + 6.25%
(c)
8.35%04/202152,934  54,106  2.3  51,875  
Clarkson Eyecare LLC#+!~
One stopL + 6.25%
(c)
8.37%04/20216,703  6,778  0.3  6,569  
Clarkson Eyecare LLC
One stopL + 6.25%
(c)
8.38%04/20211,512  1,496  0.1  1,430  
Clarkson Eyecare LLC
One stopL + 6.25%
(c)
8.35%04/20211,236  1,266  0.1  1,211  
Clarkson Eyecare LLC#!~
One stopL + 6.25%
(c)
8.39%04/2021150  147  —  147  
Clarkson Eyecare LLC
One stopL + 6.25%
(c)
8.35%04/202137  36  —  36  
Clarkson Eyecare LLC
One stopL + 6.25%
(c)
8.35%04/202132  31  —  31  
Clarkson Eyecare LLC
One stopL + 6.25%
(c)(f)
8.38%04/202132  32  —  31  
Clarkson Eyecare LLC(5)
One stopL + 6.25%
N/A(6)
04/2021—  (14) —  (15) 
Community Veterinary Partners, LLC^
One stopL + 5.50%
(a)
7.54%10/20212,205  2,290  0.1  2,205  
Community Veterinary Partners, LLC
One stopL + 5.50%
(a)
7.54%10/20211,101  1,143  0.1  1,101  
Community Veterinary Partners, LLC#!~
One stopL + 5.50%
(a)
7.54%10/2021873  906  —  873  
Community Veterinary Partners, LLC
One stopL + 5.50%
(a)
7.54%10/2021741  770  —  741  
Community Veterinary Partners, LLC#!~
One stopL + 5.50%
(a)
7.54%10/2021657  683  —  657  
Community Veterinary Partners, LLC#!~
One stopL + 5.50%
(a)
7.54%10/2021585  608  —  585  
Community Veterinary Partners, LLC
One stopL + 5.50%
(a)
7.54%10/2021315  310  —  315  
Community Veterinary Partners, LLC*
One stopL + 5.50%
(a)
7.54%10/2021196  200  —  196  
Community Veterinary Partners, LLC
One stopL + 5.50%
(a)
7.54%10/202150  49  —  50  
Imperial Optical Midco Inc.
One stopL + 4.75%
(b)(c)
6.87%08/20233,650  3,710  0.2  3,614  
Imperial Optical Midco Inc.*
One stopL + 4.75%
(b)
6.84%08/20232,846  2,820  0.1  2,817  
Imperial Optical Midco Inc.
One stopL + 4.75%
(b)(c)
6.86%08/20231,934  1,996  0.1  1,915  
Imperial Optical Midco Inc.
One stopL + 4.75%
(b)
6.84%08/20231,260  1,300  0.1  1,247  
Imperial Optical Midco Inc.
One stopL + 4.75%
(b)(c)
6.90%08/20231,147  1,183  0.1  1,135  
Imperial Optical Midco Inc.
One stopL + 4.75%
(b)
6.84%08/2023125  118  —  118  
Imperial Optical Midco Inc.
One stopL + 4.75%
N/A(6)
08/2023—  —  —  —  
Midwest Veterinary Partners, LLC+
One stopL + 4.75%
(a)
6.79%07/20254,317  4,238  0.2  4,274  
Midwest Veterinary Partners, LLC
One stopL + 4.75%
(a)(b)(c)
6.81%07/2025136  135  —  134  
Midwest Veterinary Partners, LLC(5)
One stopL + 4.75%
N/A(6)
07/2025—  (51) —  (52) 
PPV Intermediate Holdings II, LLC
One stopL + 5.00%
(c)
7.56%05/20202,309  2,398  0.1  2,309  
PPV Intermediate Holdings II, LLC
One stopN/A7.90% PIK05/202322  23  —  22  
PPV Intermediate Holdings II, LLC
One stopP + 4.00%
(f)
9.00%05/202318  17  —  18  
Ruby Slipper Cafe LLC, The*
One stopL + 7.50%
(c)
9.60%01/20231,084  1,080  0.1  1,084  
Ruby Slipper Cafe LLC, The
One stopL + 7.50%
(c)
9.60%01/2023602  620  —  602  
Ruby Slipper Cafe LLC, The
One stopL + 7.50%
(c)
9.60%01/202310  10  —  10  
See Notes to Consolidated Financial Statements.
51

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Personal, Food and Miscellaneous Services - (continued)
Southern Veterinary Partners, LLC*
One stopL + 5.50%
(a)
7.54%05/2025$5,388  $5,410  0.2  %$5,388  
Southern Veterinary Partners, LLC*
One stopL + 5.50%
(a)
7.54%05/20253,799  3,959  0.2  3,799  
Southern Veterinary Partners, LLC#!~
One stopL + 5.50%
(a)
7.54%05/20252,358  2,454  0.1  2,358  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(c)
7.54%05/20252,207  2,205  0.1  2,207  
Southern Veterinary Partners, LLC*
One stopL + 5.50%
(a)
7.54%05/20252,068  2,152  0.1  2,068  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(a)
7.54%05/20251,626  1,693  0.1  1,626  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(a)
7.54%05/20251,518  1,581  0.1  1,518  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(a)
7.54%05/20251,514  1,576  0.1  1,514  
Southern Veterinary Partners, LLC#!~
One stopL + 5.50%
(a)
7.54%05/20251,291  1,344  0.1  1,291  
Southern Veterinary Partners, LLC*
One stopL + 5.50%
(a)
7.54%05/20251,198  1,246  0.1  1,198  
Southern Veterinary Partners, LLC*
One stopL + 5.50%
(a)
7.54%05/20251,094  1,140  0.1  1,094  
Southern Veterinary Partners, LLC*
One stopL + 5.50%
(a)
7.54%05/2025920  958  —  920  
Southern Veterinary Partners, LLC*
One stopL + 5.50%
(a)
7.54%05/2025818  853  —  818  
Southern Veterinary Partners, LLC(5)
One stopL + 5.50%
N/A(6)
05/2023—  (1) —  —  
Southern Veterinary Partners, LLC(5)
One stopL + 5.50%
N/A(6)
05/2025—  (1) —  —  
Veterinary Specialists of North America, LLC*
Senior loanL + 4.25%
(a)
6.29%04/202542,076  43,803  1.9  42,076  
Veterinary Specialists of North America, LLC
Senior loanL + 4.25%
(a)
6.29%04/20251,459  1,522  0.1  1,459  
Veterinary Specialists of North America, LLC(5)
Senior loanL + 4.25%
N/A(6)
04/2025—  (3) —  —  
Veterinary Specialists of North America, LLC(5)
Senior loanL + 4.25%
N/A(6)
04/2025—  (7) —  —  
Wetzel's Pretzels, LLC*
One stopL + 6.75%
(a)
8.79%09/202117,023  17,316  0.8  17,023  
Wetzel's Pretzels, LLC
One stopL + 6.75%
(a)
8.79%09/202160  61  —  60  
206,933  211,396  9.5  205,009  
Printing and Publishing
Brandmuscle, Inc.^
Senior loanL + 5.00%
(c)
7.10%12/20211,139  1,163  0.1  1,145  
Messenger, LLC#+!~
One stopL + 6.00%
(a)(f)
8.05%08/20239,145  9,255  0.4  9,053  
Messenger, LLC
One stopP + 5.00%
(f)
10.00%08/202336  37  —  36  
Messenger, LLC(5)
One stopL + 6.00%
N/A(6)
08/2023—  (3) —  (3) 
10,320  10,452  0.5  10,231  
Retail Stores
2nd Ave. LLC
One stopL + 5.50%
(c)
7.65%09/20255,959  5,856  0.3  5,900  
2nd Ave. LLC(5)
One stopL + 5.50%
N/A(6)
09/2025—  —  —  (1) 
Batteries Plus Holding Corporation
One stopL + 6.75%
(a)
8.79%07/202222,424  22,782  1.0  22,424  
Batteries Plus Holding Corporation(5)
One stopL + 6.75%
N/A(6)
07/2022—  (1) —  —  
Boot Barn, Inc.#+!~
Senior loanL + 4.50%
(c)
6.60%06/20237,596  7,770  0.3  7,596  
Cycle Gear, Inc.^+
One stopL + 5.00%
(c)
7.32%01/202117,784  18,023  0.8  17,784  
Cycle Gear, Inc.^
One stopL + 5.00%
(c)
7.32%01/20211,295  1,325  0.1  1,295  
DTLR, Inc.^*+
One stopL + 6.50%
(c)
8.77%08/202241,813  42,484  1.9  41,813  
Elite Sportswear, L.P.
Senior loanL + 6.25%
(c)
8.35%12/20216,297  6,179  0.3  5,919  
Elite Sportswear, L.P.
Senior loanL + 6.25%
(c)
8.35%12/20212,532  2,485  0.1  2,380  
Elite Sportswear, L.P.
Senior loanL + 6.25%
(c)
8.35%12/20211,303  1,280  0.1  1,225  
Elite Sportswear, L.P.*
Senior loanL + 6.25%
(c)
8.35%12/2021427  421  —  402  
Elite Sportswear, L.P.
Senior loanL + 6.25%
(c)
8.49%12/2021252  241  —  205  
Elite Sportswear, L.P.
Senior loanL + 6.25%
(c)
8.35%12/2021198  194  —  186  
Elite Sportswear, L.P.*
Senior loanL + 6.25%
(c)
8.35%12/2021189  186  —  177  
Elite Sportswear, L.P.
Senior loanL + 6.25%
(c)
8.49%12/20217  7  —  6  
Feeders Supply Company, LLC
One stopL + 5.75%
(a)
7.79%04/20218,723  8,880  0.4  8,723  
Feeders Supply Company, LLC
Subordinated debtN/A12.50% cash/7.00% PIK04/2021138  140  —  138  
See Notes to Consolidated Financial Statements.
52

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Retail Stores - (continued)
Feeders Supply Company, LLC
One stopL + 5.75%
N/A(6)
04/2021—  —  —  —  
Jet Equipment & Tools Ltd.#+!~(8)(9)(12)
One stopL + 5.75%
(a)
7.70%11/202418,139  18,485  0.8  18,072  
Jet Equipment & Tools Ltd.*(8)(12)
One stopL + 5.75%
(a)
7.79%11/202412,490  12,787  0.6  12,490  
Jet Equipment & Tools Ltd.#+!~(8)(12)
One stopL + 5.75%
(a)
7.79%11/20244,349  4,437  0.2  4,349  
Jet Equipment & Tools Ltd.(5)(8)(9)(12)
One stopL + 5.75%
N/A(6)
11/2024—  (1) —  —  
Marshall Retail Group LLC, The^*
One stopL + 6.00%
(c)
8.32%08/202014,935  15,047  0.7  14,935  
Marshall Retail Group LLC, The
One stopL + 6.00%
(c)(f)
8.15%08/2020830  834  —  830  
Mills Fleet Farm Group LLC^*#+!~
One stopL + 6.25%
(c)
8.29%10/202443,924  44,154  1.9  41,729  
Pet Holdings ULC^*+(8)(12)
One stopL + 5.50%
(c)
7.82%07/202246,974  48,263  2.1  46,974  
Pet Holdings ULC^*(8)(12)
One stopL + 5.50%
(c)
7.82%07/2022228  231  —  228  
Pet Holdings ULC(5)(8)(12)
One stopL + 5.50%
N/A(6)
07/2022—  (2) —  —  
Pet Supplies Plus, LLC*+
Senior loanL + 4.50%
(a)
6.54%12/202414,326  14,615  0.6  14,326  
Pet Supplies Plus, LLC(5)
Senior loanL + 4.50%
N/A(6)
12/2023—  (1) —  —  
PetPeople Enterprises, LLC^
One stopL + 5.00%
(a)
7.33%09/20235,407  5,488  0.2  5,407  
PetPeople Enterprises, LLC
One stopL + 5.00%
(a)
7.33%09/20231,098  1,145  0.1  1,098  
PetPeople Enterprises, LLC
One stopL + 5.00%
(a)
7.33%09/202390  91  —  90  
Sola Franchise, LLC and Sola Salon Studios, LLC
One stopL + 5.25%
(c)
7.35%10/20247,034  7,054  0.3  7,034  
Sola Franchise, LLC and Sola Salon Studios, LLC
One stopL + 5.25%
(c)
7.35%10/20241,725  1,797  0.1  1,725  
Sola Franchise, LLC and Sola Salon Studios, LLC
One stopL + 5.25%
N/A(6)
10/2024—  —  —  —  
Sola Franchise, LLC and Sola Salon Studios, LLC(5)
One stopL + 5.25%
N/A(6)
10/2024—  (1) —  —  
Vermont Aus Pty Ltd#!~(8)(9)(11)
One stopL + 5.75%
(c)
6.75%12/20242,201  2,226  0.1  2,151  
Vermont Aus Pty Ltd(8)(9)(11)
One stopL + 5.75%
(c)
6.75%12/202426  27  —  26  
290,713  294,928  13.0  287,636  
Telecommunications
NetMotion Wireless Holdings, Inc.^*
One stopL + 6.25%
(c)
8.35%10/202111,627  11,832  0.5  11,627  
NetMotion Wireless Holdings, Inc.
One stopL + 6.25%
N/A(6)
10/2021—  —  —  —  
11,627  11,832  0.5  11,627  
Textiles and Leather
SHO Holding I Corporation#!~
Senior loanL + 5.00%
(c)
7.26%10/20224,066  4,052  0.2  3,903  
SHO Holding I Corporation
Senior loanL + 4.00%
(c)
6.31%10/202130  28  —  24  
4,096  4,080  0.2  3,927  
Utilities
Arcos, LLC#!~
One stopL + 5.75%
(c)
7.85%02/202115,833  16,126  0.7  15,833  
Arcos, LLC
One stopL + 5.75%
N/A(6)
02/2021—  —  —  —  
15,833  16,126  0.7  15,833  
Total non-controlled/non-affiliate company debt investments$4,124,068  $4,173,241  183.2  %$4,073,336  
Equity Investments (13)(14)
Aerospace and Defense
NTS Technical Systems
Common StockN/AN/AN/A2  $1,506  —  %$509  
NTS Technical Systems
Preferred stockN/AN/AN/A—  256  —  378  
NTS Technical Systems
Preferred stockN/AN/AN/A—  128  —  213  
Whitcraft LLC
Common StockN/AN/AN/A11  2,285  0.1  2,845  
4,175  0.1  3,945  
Automobile
Grease Monkey International, LLC
LLC unitsN/AN/AN/A803  1,304  0.1  1,741  
Polk Acquisition Corp.
LP interestN/AN/AN/A5  314  —  220  
See Notes to Consolidated Financial Statements.
53

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Automobile - (continued)
Quick Quack Car Wash Holdings, LLC
LLC unitsN/AN/AN/A—  $508  —  %$528  
2,126  0.1  2,489  
Beverage, Food and Tobacco
Benihana, Inc.
LLC unitsN/AN/AN/A43  699  0.1  960  
C. J. Foods, Inc.
Preferred stockN/AN/AN/A—  75  —  577  
Cafe Rio Holding, Inc.
Common StockN/AN/AN/A5  603  —  650  
Global ID Corporation
LLC interestN/AN/AN/A5  603  —  694  
Hopdoddy Holdings, LLC
LLC unitsN/AN/AN/A44  217  —  211  
Hopdoddy Holdings, LLC
LLC unitsN/AN/AN/A20  61  —  60  
Mendocino Farms, LLC
Common StockN/AN/AN/A169  770  0.1  739  
Purfoods, LLC
LLC unitsN/AN/AN/A736  1,222  0.1  1,667  
Rubio's Restaurants, Inc.
Preferred stockN/AN/AN/A2  945  0.1  985  
Wood Fired Holding Corp.
LLC unitsN/AN/AN/A437  444  —  431  
Wood Fired Holding Corp.
LLC unitsN/AN/AN/A437  —  —  —  
5,639  0.4  6,974  
Buildings and Real Estate
Brooks Equipment Company, LLC
Common StockN/AN/AN/A10  1,021  0.1  2,376  
Paradigm DKD Group, LLC+
LLC unitsN/AN/AN/A1,041  —  —  —  
Paradigm DKD Group, LLC+
LLC unitsN/AN/AN/A184  70  —  67  
Paradigm DKD Group, LLC+
LLC unitsN/AN/AN/A37  —  —  —  
1,091  0.1  2,443  
Chemicals, Plastics and Rubber
Flexan, LLC
Common StockN/AN/AN/A1  —  —  —  
Flexan, LLC
Preferred stockN/AN/AN/A—  137  —  146  
Inhance Technologies Holdings LLC
LLC unitsN/AN/AN/A—  124  —  97  
261  —  243  
Diversified/Conglomerate Manufacturing
Inventus Power, Inc.
Preferred stockN/AN/AN/A1  372  —  5  
Inventus Power, Inc.
Common StockN/AN/AN/A1  —  —  —  
Inventus Power, Inc.
LLC unitsN/AN/AN/A—  88  —  80  
Inventus Power, Inc.
Preferred stockN/AN/AN/A—  20  —  23  
Reladyne, Inc.
LP interestN/AN/AN/A1  931  0.1  1,279  
1,411  0.1  1,387  
Diversified/Conglomerate Service
Accela, Inc.
LLC unitsN/AN/AN/A670  418  —  208  
Agility Recovery Solutions Inc.
Preferred stockN/AN/AN/A97  604  0.1  815  
Astute Holdings, Inc.
LP interestN/AN/AN/A—  294  —  348  
Calabrio, Inc.
Common StockN/AN/AN/A26  205  —  200  
Caliper Software, Inc.
Common StockN/AN/AN/A221  283  —  322  
Caliper Software, Inc.
Preferred stockN/AN/AN/A3  2,734  0.1  2,862  
Caliper Software, Inc.
Preferred stockN/AN/AN/A—  36  —  38  
Centrify Corporation
LP interestN/AN/AN/A263  —  —  —  
Centrify Corporation
LP interestN/AN/AN/A1  691  —  613  
Cloudbees, Inc.
WarrantN/AN/AN/A93  181  —  239  
Cloudbees, Inc.
Preferred stockN/AN/AN/A71  466  —  455  
Confluence Technologies, Inc.
LLC interestN/AN/AN/A2  286  —  347  
Connexin Software, Inc.
LLC interestN/AN/AN/A154  192  —  217  
Digital Guardian, Inc.
Preferred stockN/AN/AN/A3,562  434  —  419  
See Notes to Consolidated Financial Statements.
54

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Diversified/Conglomerate Service - (continued)
Digital Guardian, Inc.
WarrantN/AN/AN/A1,218  $225  —  %$227  
Digital Guardian, Inc.
Preferred stockN/AN/AN/A738  142  —  142  
Digital Guardian, Inc.
WarrantN/AN/AN/A124  33  —  40  
DISA Holdings Acquisition Subsidiary Corp.
Common StockN/AN/AN/A—  154  —  426  
GS Acquisitionco, Inc.(15)
LP interestN/AN/AN/A2  291  —  371  
HealthcareSource HR, Inc.
LLC interestN/AN/AN/A—  621  —  810  
Hydraulic Authority III Limited(8)(9)(10)
Preferred stockN/AN/AN/A284  386  —  382  
Hydraulic Authority III Limited(8)(9)(10)
Common StockN/AN/AN/A6  43  —  77  
Internet Truckstop Group LLC
LP interestN/AN/AN/A408  447  —  438  
Kareo, Inc.
WarrantN/AN/AN/A53  162  —  4  
Kareo, Inc.
WarrantN/AN/AN/A5  6  —  11  
Kareo, Inc.
Preferred stockN/AN/AN/A1  8  —  7  
Maverick Bidco Inc.
LLC unitsN/AN/AN/A2  723  —  464  
MetricStream, Inc.
WarrantN/AN/AN/A168  263  —  256  
MMan Acquisition Co.
Common StockN/AN/AN/A—  927  0.1  1,306  
Namely, Inc.
WarrantN/AN/AN/A17  28  —  28  
Net Health Acquisition Corp.
LP interestN/AN/AN/A1  1,440  0.1  1,437  
Nexus Brands Group, Inc.
LP interestN/AN/AN/A—  444  —  439  
Personify, Inc.
LLC unitsN/AN/AN/A639  828  0.1  950  
Pride Midco, Inc.
Preferred stockN/AN/AN/A2  2,594  0.1  2,676  
Project Alpha Intermediate Holding, Inc.
Common StockN/AN/AN/A202  329  —  636  
Project Alpha Intermediate Holding, Inc.
Common StockN/AN/AN/A1  964  0.1  1,069  
Property Brands, Inc.
LLC unitsN/AN/AN/A63  766  0.1  839  
RegEd Aquireco, LLC
LP interestN/AN/AN/A3  21  —  24  
RegEd Aquireco, LLC
LP interestN/AN/AN/A—  316  —  320  
SnapLogic, Inc.
Preferred stockN/AN/AN/A184  458  —  458  
SnapLogic, Inc.
WarrantN/AN/AN/A69  27  —  27  
Vendavo, Inc.
Preferred stockN/AN/AN/A1,017  1,017  0.1  1,646  
Verisys Corporation
Common StockN/AN/AN/A579  712  —  786  
Vitalyst, LLC
EquityN/AN/AN/A1  7  —  —  
Vitalyst, LLC
Preferred stockN/AN/AN/A—  61  —  65  
Workforce Software, LLC
Common StockN/AN/AN/A—  973  0.1  939  
Xmatters, Inc. and Alarmpoint, Inc.
Preferred stockN/AN/AN/A474  494  —  534  
Xmatters, Inc. and Alarmpoint, Inc.
WarrantN/AN/AN/A84  64  —  59  
Xmatters, Inc. and Alarmpoint, Inc.
Preferred stockN/AN/AN/A20  26  —  31  
22,824  1.0  25,007  
Ecological
Pace Analytical Services, LLC
Common StockN/AN/AN/A6  700  0.1  781  
Electronics
Appriss Holdings, Inc.
Preferred stockN/AN/AN/A—  173  —  172  
Diligent Corporation
Preferred stockN/AN/AN/A414  1,609  0.1  1,777  
Episerver, Inc.
Common StockN/AN/AN/A76  807  0.1  813  
Project Silverback Holdings Corp.
Preferred stockN/AN/AN/A3  6  —  —  
SEI, Inc.
LLC unitsN/AN/AN/A547  819  0.1  1,402  
Silver Peak Systems, Inc.
WarrantN/AN/AN/A67  27  —  26  
Sloan Company, Inc., The
LLC unitsN/AN/AN/A2  13  —  —  
See Notes to Consolidated Financial Statements.
55

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Electronics - (continued)
Sloan Company, Inc., The
LLC unitsN/AN/AN/A—  $152  —  %$—  
3,606  0.3  4,190  
Healthcare, Education and Childcare
Active Day, Inc.
LLC interestN/AN/AN/A1  1,021  0.1  774  
Acuity Eyecare Holdings, LLC
LLC unitsN/AN/AN/A1,158  1,334  0.1  1,212  
ADCS Clinics Intermediate Holdings, LLC
Preferred stockN/AN/AN/A1  1,119  0.1  1,018  
ADCS Clinics Intermediate Holdings, LLC
Common StockN/AN/AN/A—  6  —  —  
Aris Teleradiology Company, LLC
Preferred stockN/AN/AN/A5  —  —  —  
Aris Teleradiology Company, LLC
Common StockN/AN/AN/A2  —  —  —  
Aris Teleradiology Company, LLC
Preferred stockN/AN/AN/A—  —  —  —  
Aspen Medical Products, LLC
Common StockN/AN/AN/A—  77  —  75  
BIO18 Borrower, LLC
LLC interestN/AN/AN/A591  1,190  0.1  1,272  
BIOVT, LLC
LLC unitsN/AN/AN/A—  1,223  0.1  1,663  
CMI Parent Inc.
LLC unitsN/AN/AN/A2  3  —  3  
CMI Parent Inc.
LLC unitsN/AN/AN/A—  240  —  232  
CRH Healthcare Purchaser, Inc.
LP interestN/AN/AN/A429  469  —  482  
DCA Investment Holding, LLC
LLC unitsN/AN/AN/A13,890  1,619  0.1  1,908  
DCA Investment Holding, LLC
LLC unitsN/AN/AN/A140  218  —  528  
Deca Dental Management LLC
LLC unitsN/AN/AN/A1,008  1,278  0.1  1,358  
Dental Holdings Corporation
LLC unitsN/AN/AN/A1,277  891  —  185  
Elite Dental Partners LLC
Common StockN/AN/AN/A—  737  —  666  
Encore GC Acquisition, LLC(15)
LLC unitsN/AN/AN/A26  272  —  278  
Encore GC Acquisition, LLC
LLC unitsN/AN/AN/A26  52  —  160  
ERG Buyer, LLC
LLC unitsN/AN/AN/A8  4  —  —  
ERG Buyer, LLC
LLC unitsN/AN/AN/A1  661  —  510  
Eyecare Services Partners Holdings LLC
LLC unitsN/AN/AN/A—  262  —  171  
Eyecare Services Partners Holdings LLC
LLC unitsN/AN/AN/A—  1  —  —  
G & H Wire Company, Inc.
LLC interestN/AN/AN/A336  269  —  207  
IntegraMed America, Inc.
LLC interestN/AN/AN/A—  417  —  64  
Joerns Healthcare, LLC^*
Common StockN/AN/AN/A123  2,852  0.1  1,207  
Katena Holdings, Inc.
LLC unitsN/AN/AN/A1  573  —  514  
Krueger-Gilbert Health Physics, LLC
LLC interestN/AN/AN/A136  152  —  156  
Lombart Brothers, Inc.
Common StockN/AN/AN/A1  440  —  559  
MD Now Holdings, Inc.
LLC unitsN/AN/AN/A15  153  —  152  
MWD Management, LLC & MWD Services, Inc.
LLC interestN/AN/AN/A412  335  —  282  
Oliver Street Dermatology Holdings, LLC
LLC unitsN/AN/AN/A452  234  —  —  
Pentec Acquisition Sub, Inc.
Preferred stockN/AN/AN/A1  116  —  106  
Pinnacle Treatment Centers, Inc.
Common StockN/AN/AN/A5  74  —  140  
Pinnacle Treatment Centers, Inc.
Preferred stockN/AN/AN/A—  528  —  574  
Radiology Partners, Inc.
LLC unitsN/AN/AN/A43  55  —  327  
Radiology Partners, Inc.
LLC unitsN/AN/AN/A11  68  —  83  
RXH Buyer Corporation
LP interestN/AN/AN/A11  973  —  705  
Sage Dental Management, LLC
LLC unitsN/AN/AN/A3  3  —  —  
Sage Dental Management, LLC
LLC unitsN/AN/AN/A—  249  —  5  
SLMP, LLC
LLC unitsN/AN/AN/A668  789  0.1  843  
Spear Education, LLC
LLC unitsN/AN/AN/A1  1  —  38  
Spear Education, LLC
LLC unitsN/AN/AN/A—  62  —  82  
SSH Corpration
Common StockN/AN/AN/A—  40  —  143  
See Notes to Consolidated Financial Statements.
56

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Healthcare, Education and Childcare - (continued)
Summit Behavioral Healthcare, LLC(15)
LLC interestN/AN/AN/A2  $98  —  %$50  
Summit Behavioral Healthcare, LLC
LLC interestN/AN/AN/A2  —  —  —  
Surgical Information Systems, LLC(15)
Common StockN/AN/AN/A4  414  —  505  
WHCG Management, LLC
LLC unitsN/AN/AN/A1  414  —  287  
21,986  0.9  19,524  
Insurance
Captive Resources Midco, LLC(15)
LLC unitsN/AN/AN/A388  —  —  436  
Orchid Underwriters Agency, LLC
LP interestN/AN/AN/A78  90  —  96  
90  —  532  
Leisure, Amusement, Motion Pictures, Entertainment
LMP TR Holdings, LLC
LLC unitsN/AN/AN/A712  712  0.1  1,478  
PADI Holdco, Inc.
LLC unitsN/AN/AN/A1  1,073  0.1  1,114  
WBZ Investment LLC
LLC interestN/AN/AN/A68  117  —  122  
WBZ Investment LLC
LLC interestN/AN/AN/A46  80  —  84  
WBZ Investment LLC
LLC interestN/AN/AN/A38  65  —  69  
WBZ Investment LLC
LLC interestN/AN/AN/A33  58  —  60  
WBZ Investment LLC
LLC interestN/AN/AN/A14  24  —  26  
WBZ Investment LLC
LLC interestN/AN/AN/A1  2  —  2  
2,131  0.2  2,955  
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC(15)
LLC unitsN/AN/AN/A20  291  —  389  
Massage Envy, LLC
LLC interestN/AN/AN/A749  210  0.1  1,776  
501  0.1  2,165  
Personal, Food and Miscellaneous Services
Blue River Pet Care, LLC
LLC unitsN/AN/AN/A—  76  —  74  
Captain D's, LLC
LLC interestN/AN/AN/A158  156  —  147  
Clarkson Eyecare LLC
LLC unitsN/AN/AN/A—  275  —  263  
Community Veterinary Partners, LLC
Common StockN/AN/AN/A4  597  —  730  
Midwest Veterinary Partners, LLC
LLC unitsN/AN/AN/A6  —  —  —  
Midwest Veterinary Partners, LLC
LLC unitsN/AN/AN/A—  29  —  29  
PPV Intermediate Holdings II, LLC
LLC unitsN/AN/AN/A208  198  —  197  
R.G. Barry Corporation
Preferred stockN/AN/AN/A—  161  —  120  
Ruby Slipper Cafe LLC, The
LLC unitsN/AN/AN/A31  373  —  398  
Southern Veterinary Partners, LLC
LLC unitsN/AN/AN/A147  188  —  409  
Southern Veterinary Partners, LLC
LLC unitsN/AN/AN/A1  717  0.1  845  
Wetzel's Pretzels, LLC
Common StockN/AN/AN/A—  416  —  507  
3,186  0.1  3,719  
Printing and Publishing
Brandmuscle, Inc.
LLC interestN/AN/AN/A—  335  —  196  
Retail Stores
2nd Ave. LLC
LP interestN/AN/AN/A653  653  —  653  
Batteries Plus Holding Corporation
LP interestN/AN/AN/A10  1,287  0.1  1,483  
Cycle Gear, Inc.
LLC unitsN/AN/AN/A27  462  —  662  
DTLR, Inc.
LLC interestN/AN/AN/A4  411  0.1  835  
Elite Sportswear, L.P.
LLC interestN/AN/AN/A—  165  —  —  
Feeders Supply Company, LLC
Preferred stockN/AN/AN/A4  400  —  413  
Feeders Supply Company, LLC
Common StockN/AN/AN/A—  —  —  —  
Jet Equipment & Tools Ltd.(8)(9)(12)
LLC unitsN/AN/AN/A1  946  0.1  1,097  
See Notes to Consolidated Financial Statements.
57

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Retail Stores - (continued)
Marshall Retail Group LLC, The
LLC unitsN/AN/AN/A15  $154  —  %$149  
Paper Source, Inc.
Common StockN/AN/AN/A8  1,387  —  363  
Pet Holdings ULC(8)(12)
LP interestN/AN/AN/A677  483  —  282  
Pet Supplies Plus, LLC
LLC unitsN/AN/AN/A144  181  —  205  
Sola Franchise, LLC and Sola Salon Studios, LLC
LLC unitsN/AN/AN/A4  496  —  567  
Sola Franchise, LLC and Sola Salon Studios, LLC
LLC unitsN/AN/AN/A1  101  —  118  
7,126  0.3  6,827  
Total non-controlled/affiliate company equity investments$77,188  3.8  %$83,377  
Total non-controlled/non-affiliate company investments$4,124,068  $4,250,429  187.0  %$4,156,713  
Non-controlled affiliate company investments(16)
Debt investments
Beverage, Food and Tobacco
Uinta Brewing Company^+(7)(8)
One stopL + 4.00%
(a)
6.04%08/2021$962  $928  —  %$793  
Uinta Brewing Company(7)(8)
One stopL + 4.00%
(a)(c)
6.04%08/2021192  188  —  170  
1,154  1,116  —  963  
Diversified/Conglomerate Service
Switchfly LLC(8)
One stopL + 3.00%
(c)
5.32%10/20235,363  5,142  0.2  4,827  
Switchfly LLC(8)
One stopL + 3.00%
(c)
5.32%10/2023447  430  —  403  
Switchfly LLC(8)
One stopL + 3.00%
(c)
5.32%10/202334  33  —  30  
Switchfly LLC(8)
One stopL + 8.50%
N/A(6)
10/2023—  —  —  —  
5,844  5,605  0.2  5,260  
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc.+(8)
One stopL + 11.00%
(a)
11.04% cash/2.00% PIK05/20204,249  4,222  0.2  3,398  
Benetech, Inc.(8)
One stopP + 9.75%
(a)(f)
12.61% cash/2.00% PIK05/2020581  572  —  341  
4,830  4,794  0.2  3,739  
Total non-controlled affiliate company debt investments$11,828  $11,515  0.4  %$9,962  
Equity Investments (13)(14)
Beverage, Food and Tobacco
Uinta Brewing Company(8)
Common StockN/AN/AN/A153  17  —  82  
Diversified/Conglomerate Service
Switchfly LLC(8)
LLC unitsN/AN/AN/A3,418  2,322  0.1  2,523  
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc.(8)
LLC interestN/AN/AN/A59  —  —  8  
Benetech, Inc.(8)
LLC interestN/AN/AN/A59  —  —  —  
—  —  8  
Total non-controlled affiliate company equity investments$2,339  0.1  %$2,613  
Total non-controlled affiliate company investments$11,828  $13,854  0.5  %$12,575  
See Notes to Consolidated Financial Statements.
58

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)

Investment Type
Spread Above Index(1)
Interest Rate(2)
Maturity Date
Principal ($) / Shares(3)
Amortized CostPercentage of Net Assets
Fair Value(4)
Controlled affiliate company investments(17)
Equity Investments
Investment Funds and Vehicles
GCIC Senior Loan Fund LLC(8)(18)
LLC interestN/AN/AN/A48,356  $52,605  2.2  %$49,258  
Senior Loan Fund LLC(8)(18)
LLC interestN/AN/AN/A74,882  74,882  3.4  74,386  
Total controlled affiliate equity investments$127,487  5.6  %$123,644  
Total investments$4,135,896  $4,391,770  193.1  %$4,292,932  
Cash and cash equivalents, foreign currencies, restricted cash and cash equivalents, and restricted foreign currencies
BlackRock Liquidity Funds T-Fund Institutional Shares (CUSIP 09248U718)
1.81% (19)
9,963  0.4  9,963  
Total cash and cash equivalents, foreign currencies, restricted cash and cash equivalents, and restricted foreign currencies$9,963  0.4  %$9,963  
Total investments and cash, cash equivalents, and restricted cash and cash equivalents$4,401,733  193.5  %$4,302,895  

^
Denotes that all or a portion of the loan secures the notes offered in the 2014 Debt Securitization (as defined in Note 7).
*
Denotes that all or a portion of the loan secures the notes offered in the 2018 Debt Securitization (as defined in Note 7).
#
Denotes that all or a portion of the loan secures the notes offered in the GCIC 2018 Debt Securitization (as defined in Note 7).
+
Denotes that all or a portion of the loan collateralizes the WF Credit Facility (as defined in Note 7).
!
Denotes that all or a portion of the loan collateralizes the DB Credit Facility (as defined in Note 7).
~
Denotes that all or a portion of the loan collateralizes the MS Credit Facility II (as defined in Note 7).
(1)The majority of the investments bear interest at a rate that is permitted to be determined by reference to LIBOR denominated in U.S. dollars or GBP, EURIBOR or Prime (“P”) and which reset daily, monthly, quarterly, semiannually, or annually. For each, the Company has provided the spread over LIBOR, EURIBOR or Prime and the weighted average current interest rate in effect as of September 30, 2019. Certain investments are subject to a LIBOR, EURIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable. Listed below are the index rates as of September 30, 2019, which was the last business day of the period on which LIBOR or EURIBOR was determined. The actual index rate for each loan listed may not be the applicable index rate outstanding as of September 30, 2019, as the loan may have priced or repriced based on an index rate prior to September 30, 2019.
(a) Denotes that all or a portion of the loan was indexed to the 30-day LIBOR, which was 2.02% as of September 30, 2019.
(b) Denotes that all or a portion of the loan was indexed to the 60-day LIBOR, which was 2.07% as of September 30, 2019.
(c) Denotes that all or a portion of the loan was indexed to the 90-day LIBOR, which was 2.09% as of September 30, 2019.
(d) Denotes that all or a portion of the loan was indexed to the 180-day LIBOR, which was 2.06% as of September 30, 2019.
(e) Denotes that all or a portion of the loan was indexed to the 360-day LIBOR, which was 2.03% as of September 30, 2019.
(f) Denotes that all or a portion of the loan was indexed to the Prime rate, which was 5.00% as of September 30, 2019.
(g) Denotes that all or a portion of the loan was indexed to the 90-day EURIBOR, which was -0.44% as of September 30, 2019.
(h) Denotes that all or a portion of the loan was indexed to the 30-day GBP LIBOR, which was 0.72% as of September 30, 2019.
(i) Denotes that all or a portion of the loan was indexed to the 90-day GBP LIBOR, which was 0.76% as of September 30, 2019.
(j) Denotes that all or a portion of the loan was indexed to the 180-day GBP LIBOR, which was 0.83% as of September 30, 2019.
(2)For portfolio companies with multiple interest rate contracts, the interest rate shown is a weighted average current interest rate in effect as of September 30, 2019.
(3)The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.
(4)The fair value of the investment was valued using significant unobservable inputs. See Note 6. Fair Value Measurements.
(5)The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par. The negative amortized cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.
(6)The entire commitment was unfunded as of September 30, 2019. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.
(7)Loan was on non-accrual status as of September 30, 2019, meaning that the Company has ceased recognizing interest income on the loan.
(8)The investment is treated as a non-qualifying asset under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, the Company can not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of September 30, 2019, total non-qualifying assets at fair value represented 7.8% of the Company's total assets calculated in accordance with the 1940 Act.
See Notes to Consolidated Financial Statements.
59

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)
(9)Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date or the date of the transaction. See Note 2. Significant Accounting Policies and Recent Accounting Updates - Foreign Currency Transactions.
(10)The headquarters of this portfolio company is located in the United Kingdom.
(11)The headquarters of this portfolio company is located in Australia.
(12)The headquarters of this portfolio company is located in Canada.
(13)Equity investments are non-income producing securities unless otherwise noted.
(14)Ownership of certain equity investments occurs through a holding company or partnership.
(15)The Company holds an equity investment that entitles it to receive preferential dividends.
(16)As defined in the 1940 Act, the Company is deemed to be an “affiliated person” of the portfolio company as the Company owns five percent or more of the portfolio company's voting securities (“non-controlled affiliate”). Transactions related to investments in non-controlled affiliates for the year ended September 30, 2019 were as follows:
Portfolio Company
Fair value as of September 30, 2018
Gross Additions(k)
Gross Reductions(l)
Net change in unrealized gain (loss)Net realized gain (loss)Fair value as of September 30, 2019Interest and
fee income
Benetech, Inc.
$4,496  $740  $(425) $(1,064) $—  $3,747  $623  
Switchfly LLC
2,788  5,391  (339) (57) —  7,783  139  
Uinta Brewing Company(m)
—  1,178  (44) (89) —  1,045  —  
Total Non-Controlled Affiliates
$7,284  $7,309  $(808) $(1,210) $—  $12,575  $762  

(k)
Gross additions may include increases in the cost basis of investments resulting from new investments, amounts related to PIK interest capitalized and added to the principal balance of the respective loans, the accretion of discounts, the exchange of one or more existing investments for one or more new investments and the movement of an existing portfolio company into this affiliated category from a different category.
(l)
Gross reductions may include decreases in the cost basis of investments resulting from principal collections related to investment repayments and sales, the amortization of premiums and the exchange of one or more existing securities for one or more new securities.
(m)
During the three months ended March 31, 2019, the Company's ownership increased to over five percent of the portfolio company's voting securities.
(17)As defined in the 1940 Act, the Company is deemed to be both an “affiliated person” of and “control” this portfolio company as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement) (“controlled affiliate”). Transactions related to investments in controlled affiliates for the year ended September 30, 2019 were as follows:
Portfolio Company
Fair value as of September 30, 2018
Gross Additions(n)
Gross Reductions(o)
Net change in unrealized gain (loss)Net realized gain (loss)Fair value as of September 30, 2019Interest and
fee income
Senior Loan Fund LLC(q)
$71,084  $1,750  $(2,275) $—  $3,827  $74,386  $—  
GCIC Senior Loan Fund LLC(r)
—  52,605  —  —  (3,347) 49,258  1,219  
Total Controlled Affiliates
$71,084  $54,355  $(2,275) $—  $480  $123,644  $1,219  

(n)
Gross additions include capital commitment called and funded and the acquisition of GCIC SLF in the merger with GCIC (described in Note 1).
(o)
Gross reductions include return of capital for the Company's investment in SLF.
(p)
As of September 30, 2019, together with RGA, the Company co-invested through SLF. SLF was capitalized as transactions were completed and all portfolio and investment decisions in respect to SLF were approved by the SLF investment committee consisting of two representatives of the Company and RGA (with unanimous approval required from (i) one representative of each of the Company and RGA or (ii) both representatives of each of the Company and RGA). Therefore, although the Company owned more than 25% of the voting securities of SLF, the Company did not have sole control over significant actions of SLF for purposes of the 1940 Act or otherwise.
(q)
As of September 30, 2019, together with Aurora, the Company co-invested through GCIC SLF, following the acquisition of GCIC SLF in the merger with GCIC (described in Note 1). GCIC SLF was capitalized as transactions were completed and all portfolio and investment decisions in respect to GCIC SLF were approved by the GCIC SLF investment committee consisting of two representatives of the Company and Aurora (with unanimous approval required from (i) one representative of each of the Company and Aurora or (ii) both representatives of each of the Company and Aurora). Therefore, although the Company owned more than 25% of the voting securities of GCIC SLF, the Company did not have sole control over significant actions of GCIC SLF for purposes of the 1940 Act or otherwise.
(18)The Company generally receives quarterly profit distributions from its equity investments in SLF and GCIC SLF. For the year ended September 30, 2019, the Company did not receive a profit distribution from its equity investments in SLF. For its equity investment in GCIC SLF, the Company received $1,219 for the year ended September 30, 2019. See Note 4. Investments.
(19)The rate shown is the annualized seven-day yield as of September 30, 2019.

See Notes to Consolidated Financial Statements.
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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Note 1. Organization

Golub Capital BDC, Inc. (“GBDC” and, collectively with its subsidiaries, the “Company”) is an externally managed, closed-end, non-diversified management investment company. GBDC has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for U.S. federal income tax purposes, GBDC has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

The Company’s investment strategy is to invest primarily in one stop (a loan that combines characteristics of traditional first lien senior secured loans and second lien or subordinated loans and that are often referred to by other middle-market lenders as unitranche loans) and other senior secured loans of U.S. middle-market companies. The Company also selectively invests in second lien and subordinated (a loan that ranks senior only to a borrower’s equity securities and ranks junior to all of such borrower’s other indebtedness in priority of payment) loans of, and warrants and minority equity securities in, U.S. middle-market companies. The Company has entered into the Investment Advisory Agreement (defined below) with GC Advisors LLC (the “Investment Adviser”), under which the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, the Company. Under an administration agreement (the “Administration Agreement”) the Company is provided with certain services by an administrator (the “Administrator”), which is currently Golub Capital LLC.

On September 16, 2019, the Company completed its acquisition of Golub Capital Investment Corporation (“GCIC”), a Maryland corporation, pursuant to that certain Agreement and Plan of Merger (as amended, the “Merger Agreement”), dated as of November 27, 2018, by and among the Company, GCIC, Fifth Ave Subsidiary Inc., a Maryland corporation and wholly owned subsidiary of the Company (“Merger Sub”), the Investment Adviser, and, for certain limited purposes, the Administrator. Pursuant to the Merger Agreement, Merger Sub was first merged with and into GCIC, with GCIC as the surviving company (the “Initial Merger”), and, immediately following the Initial Merger, GCIC was then merged with and into the Company, with the Company as the surviving company (the Initial Merger and the subsequent merger, collectively, the “Merger”). Upon consummation of the Merger, the Company entered into the Third Amended and Restated Investment Advisory Agreement dated as of September 16, 2019 with the Investment Adviser (the “Investment Advisory Agreement”). The Investment Advisory Agreement replaced the Second Amended and Restated Investment Advisory Agreement by and between the Company and the Investment Adviser dated as of August 4, 2014 (the “Prior Investment Advisory Agreement”). Refer to Note 3 for more information on the Investment Advisory Agreement and the Prior Investment Advisory Agreement.

On January 1, 2020 the Company entered into a purchase agreement (the “Purchase Agreement”) with RGA Reinsurance Company (“RGA”), Aurora National Life Assurance Company (“Aurora”), Senior Loan Fund (“SLF”), and GCIC Senior Loan Fund LLC (“GCIC SLF”). Pursuant to the Purchase Agreement, RGA and Aurora (together the “Transferors”) agreed to sell their limited liability company (“LLC”) equity interests in SLF and GCIC SLF, respectively, to the Company, effective as of January 1, 2020. As a result of the Purchase Agreement, on January 1, 2020, SLF and GCIC SLF became wholly-owned subsidiaries of the Company and the capital commitments of the Transferors to SLF and GCIC SLF were terminated.

Note 2. Significant Accounting Policies and Recent Accounting Updates

Basis of presentation:  The Company is an investment company as defined in the accounting and reporting guidance under Accounting Standards Codification (“ASC”) Topic 946 — Financial Services — Investment Companies (“ASC Topic 946”).
The accompanying interim consolidated financial statements of the Company and related financial information have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for the interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6, 10 and 12 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications consisting solely of normal accruals that are necessary for the fair presentation of financial results as of and for the periods presented. All intercompany balances and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. The unaudited interim consolidated financial statements and notes thereto should be read in conjunction with the
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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

financial statements and notes thereto in the Company’s Form 10-K for the year ended September 30, 2019, as filed with the U.S. Securities and Exchange Commission (the “SEC”).

Fair value of financial instruments:  The Company applies fair value to all of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurement (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.

The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3.

Any changes to the valuation methodology are reviewed by management and the Company’s board of directors (the “Board”) to confirm that the changes are appropriate. As markets change, new products develop and the pricing for products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See further description of fair value methodology in Note 6. Fair Value Measurements.

Use of estimates:  The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Consolidation:  As provided under Regulation S-X and ASC Topic 946, the Company will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the results of the Company’s wholly-owned subsidiaries Golub Capital BDC 2010-1 Holdings LLC (“Holdings”), Golub Capital BDC 2010-1 LLC (“2010 Issuer”), Golub Capital BDC CLO 2014 LLC (“2014 Issuer”), Golub Capital BDC CLO III Depositor LLC (“2018 CLO Depositor”), Golub Capital BDC CLO III LLC (“2018 Issuer”), Golub Capital BDC Funding LLC (“Funding”), Golub Capital BDC Funding II LLC (“Funding II”), Golub Capital BDC Holdings, LLC (“BDC Holdings”), GC SBIC IV, L.P. (“SBIC IV”), GC SBIC V, L.P. (“SBIC V”), GC SBIC VI, L.P. (“SBIC VI”), GCIC Holdings LLC (“GCIC Holdings”), GCIC Funding LLC (“GCIC Funding”), GCIC CLO II Depositor LLC (“GCIC 2018 CLO Depositor”), GCIC CLO II LLC (“GCIC 2018 Issuer”), GCIC Funding II LLC (“GCIC Funding II”), SLF, Senior Loan Fund II LLC (“SLF II”), GCIC SLF and GCIC Senior Loan Fund II LLC (“GCIC SLF II”). Prior to January 1, 2020, the Company did not consolidate its non-controlling interests in SLF, SLF II, GCIC SLF and GCIC SLF II (collectively, the “Senior Loan Funds” or “SLFs”). See further description of the Company’s previous investments in the SLFs in Note 4. Investments.

Assets related to transactions that do not meet ASC Topic 860 requirements for accounting sale treatment are reflected in the Company’s Consolidated Statements of Financial Condition as investments. Those assets are owned by special purpose entities, including BDC Holdings, 2014 Issuer, 2018 Issuer, Funding, Funding II, GCIC Funding, GCIC Holdings, GCIC 2018 Issuer, GCIC Funding II, SLF II and GCIC SLF II that are consolidated in the Company’s consolidated financial statements. The creditors of the special purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of GBDC (or any affiliate of GBDC).

Cash, cash equivalents and foreign currencies: Cash, cash equivalents and foreign currencies are highly liquid investments with an original maturity of three months or less at the date of acquisition. The Company deposits its
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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

cash in financial institutions and, at times, such balances exceed the Federal Deposit Insurance Corporation insurance limits.

Restricted cash and cash equivalents and restricted foreign currencies:  Restricted cash and cash equivalents and restricted foreign currencies include amounts that are collected and are held by trustees who have been appointed as custodians of the assets securing certain of the Company’s financing transactions. Restricted cash and cash equivalents and restricted foreign currencies are held by the trustees for payment of interest expense and principal on the outstanding borrowings or reinvestment into new assets. In addition, restricted cash, cash equivalents and restricted foreign currencies include amounts held within the Company’s small business investment company (“SBIC”) subsidiaries. The amounts held within the SBICs are generally restricted to the originations of new loans by the SBICs and the payment of U.S. Small Business Administration (“SBA”) debentures and related interest expense.

Foreign currency translation: The Company’s books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

(1)cash and cash equivalents, restricted cash and cash equivalents, fair value of investments, interest receivable, and other assets and liabilities—at the spot exchange rate on the last business day of the period; and

(2)purchases and sales of investments, income and expenses—at the exchange rates prevailing on the respective dates of such transactions.

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, the Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in fair values of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Fluctuations arising from the translation of assets other than investments and liabilities are included with the net change in unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies on the Consolidated Statements of Operations.

Foreign security and currency transactions involve certain considerations and risks not typically associated with investing in U.S. companies. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices more volatile than those of comparable U.S. companies or U.S. government securities.

Forward currency contracts: A forward currency contract is an obligation between two parties to purchase or sell a specific currency for an agreed-upon price at a future date. The Company utilized forward currency contracts to economically hedge the currency exposure associated with certain foreign-denominated investments. The use of forward currency contracts does not eliminate fluctuations in the price of the underlying securities the Company owns or intends to acquire but establishes a rate of exchange in advance. Fluctuations in the value of these contracts are measured by the difference in the exchange rates on the contract date and reporting date and are recorded as unrealized appreciation (depreciation) until the contracts are closed. When the contracts are closed, realized gains (losses) are recorded. Realized gains (losses) and unrealized appreciation (depreciation) on the contracts are included in the Consolidated Statements of Operations. Unrealized appreciation (depreciation) on forward currency contracts is recorded on the Consolidated Statements of Financial Condition by counterparty on a net basis, not taking into account collateral posted which is recorded separately, if applicable.

The primary risks associated with forward currency contracts include failure of the counterparty to meet the terms of the contract and the value of the foreign currency changing unfavorably. These risks can exceed the amounts reflected in the Consolidated Statements of Financial Condition.

Refer to Note 5 for more information regarding the forward currency contracts.

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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Revenue recognition:

Investments and related investment income:  Interest income is accrued based upon the outstanding principal amount and contractual interest terms of debt investments.

Loan origination fees, original issue discount and market discount or premium are capitalized, and the Company accretes or amortizes such amounts over the life of the loan as interest income. For the three and nine months ended June 30, 2020, interest income included $4,025 and $12,566, respectively, of accretion of discounts. For the three and nine months ended June 30, 2019, interest income included $2,694 and $6,624, respectively, of accretion of discounts. For the three and nine months ended June 30, 2020, the Company received loan origination fees of $969 and $7,794, respectively. For the three and nine months ended June 30, 2019, the Company received loan origination fees of $3,475 and $8,127, respectively.

For investments with contractual PIK interest, which represents contractual interest accrued and added to the principal balance that generally becomes due at maturity, the Company will not accrue PIK interest if the portfolio company valuation indicates that the PIK interest is not collectible. For the three and nine months ended June 30, 2020, the Company capitalized PIK interest of $2,865 and $7,513, respectively, into the principal balance of certain debt investments. For the three and nine months ended June 30, 2019, the Company capitalized PIK interest of $960 and $1,811, respectively, into the principal balance of certain debt investments.

In addition, the Company generates revenue in the form of amendment, structuring or due diligence fees, fees for providing managerial assistance, consulting fees and prepayment premiums on loans. The Company records these fees as fee income when earned. All other income is recorded into income when earned. For the three and nine months ended June 30, 2020, fee income included $600 and $663, respectively, of prepayment premiums, which fees are non-recurring. For the three and nine months ended June 30, 2019, fee income included $240 and $681, respectively, of prepayment premiums, which fees are non-recurring.

For the three and nine months ended June 30, 2020, the Company received interest and fee income in cash, which excludes capitalized loan origination fees, in the amounts of $69,384 and $238,606, respectively. For the three and nine months ended June 30, 2019, the Company received interest and fee income in cash, which excludes capitalized loan origination fees, in the amounts of $39,829 and $115,954, respectively.

Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Each distribution received from LLC and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

For the three and nine months ended June 30, 2020, excluding the Company's investment in LLC equity interests in the SLFs, the Company recorded dividend income of $0, and $180, respectively, and return of capital distributions, excluding the Company's investment in LLC equity interests in the SLFs, of $0 and $0, respectively. For the three and nine months ended June 30, 2020, the Company recorded dividend income of $0 and $1,905, respectively, and return of capital distributions of $0 and $4,375, respectively, from the Company's investment in LLC equity interests in the SLFs. For the three and nine months ended June 30, 2019, excluding the Company's investment in LLC equity interests in the SLFs, the Company recorded dividend income of $59 and $117, respectively, and return of capital distributions, excluding the Company's investment in LLC equity interests in the SLFs, of $0 and $0, respectively. For the three and nine months ended June 30, 2019, the Company recorded dividend income of $0, and $0, respectively, and return of capital distributions of $0, and $2,275, respectively, from the Company's investment in LLC equity interests in the SLFs.

Investment transactions are accounted for on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the amortized cost basis of investment, without regard to unrealized gains or losses previously recognized. The Company reports current period
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

changes in fair value of investments that are measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments and foreign currency translation in the Consolidated Statements of Operations.

Non-accrual loans: A loan can be left on accrual status during the period the Company is pursuing repayment of the loan. Management reviews all loans that become 90 days or more past due on principal and interest, or when there is reasonable doubt that principal or interest will be collected, for possible placement on non-accrual status. When a loan is placed on non-accrual status, unpaid interest credited to income is reversed. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans are recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, payments are likely to remain current. The total fair value of non-accrual loans was $81,746 and $13,663 as of June 30, 2020 and September 30, 2019, respectively.

Purchase accounting: The Merger was accounted for under the asset acquisition method of accounting in accordance with ASC 805 — Business Combinations — Related Issues (“ASC Topic 805”), also referred to as “purchase accounting.” Under asset acquisition accounting, acquiring assets in groups not only requires ascertaining the cost of the asset (or net assets), but also allocating that cost to the individual assets (or individual assets and liabilities) that make up the group. Per ASC Topic 805, assets are recognized based on their cost to the acquiring entity, which generally includes transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets carrying amounts on the acquiring entity’s books.

The cost of the group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on the relative fair values of net identifiable assets acquired other than “non-qualifying” assets (for example cash) and does not give rise to goodwill. To the extent that the consideration paid to GCIC’s stockholders exceeded the relative fair values of the net identifiable assets of GCIC acquired other than “non-qualifying” assets, any such premium paid by the Company was further allocated to the cost of the GCIC assets acquired by the Company pro-rata to their relative fair value, other than “non-qualifying” assets. As GCIC did not have any “qualifying” assets at the time of acquisition, the premium was allocated to “non-qualifying” assets, which are GCIC’s investments in loans and equity securities, including its investment in GCIC SLF. 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 will amortize over the life of the loans through interest income, with a corresponding reversal of the unrealized depreciation on the loans acquired from GCIC through their ultimate disposition. Amortization expense of purchase premium for the three and nine months ended June 30, 2020, was $7,558 and $31,995, respectively. 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 equity securities acquired from GCIC 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 equity securities acquired from GCIC.

The Company's purchase of the equity interests in the Senior Loan Funds was accounted for under the asset acquisition method of accounting in accordance with ASC Topic 805. As of January 1, 2020, the Company allocated the cost to acquire the net assets of the Senior Loans Funds to the assets acquired and liabilities assumed based on the relative fair values of identifiable assets and liabilities. The total consideration transferred by the Company to acquire the Senior Loans Funds was $140,124, which was comprised of $17,011 paid to RGA and Aurora for their minority interests in the Senior Loan Funds and the derecognition of the Company's existing carrying cost of the investments in the Senior Loans Funds, as of January 1, 2020, of $123,113. As of January 1, 2020, the fair value of the net assets of the Senior Loan Funds was $136,088, which resulted in a $4,036 purchase premium that the Company recognized as realized loss in the Consolidated Statements of Operations.

Income taxes:  The Company has elected to be treated as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. In order to qualify and be subject to tax as a RIC, among other things, the Company is required to meet certain source of income and asset diversification requirements
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

and timely distribute dividends for U.S. federal income tax purposes to its stockholders of an amount generally at least equal to 90% of investment company taxable income, as defined by the Code and determined without regard to any deduction for dividends paid, for each tax year. The Company has made, and intends to continue to make, the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal income taxes with respect to all income distributed to its stockholders.

Depending on the level of taxable income earned in a tax year, the Company can determine to retain taxable income in excess of current year dividend distributions and distribute such taxable income in the next tax year. The Company may then be required to incur a 4% excise tax on such income. To the extent that the Company determines that its estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. No U.S. deferral excise tax was incurred for each of the three and nine months ended June 30, 2020 and 2019.

The Company accounts for income taxes in conformity with ASC Topic 740 — Income Taxes (“ASC Topic 740”). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense or tax benefit in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits in income tax expense. There were no material unrecognized tax benefits or unrecognized tax liabilities related to uncertain income tax positions through June 30, 2020. The Company's tax returns for the 2017 through 2019 tax years remain subject to examination by U.S. federal and most state tax authorities.

Dividends and distributions:  Dividends and distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid out as a dividend or distribution is determined by the Board each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, are distributed at least annually, although the Company can retain such capital gains for investment in its discretion.

The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of any distributions the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, if the Board authorizes and the Company declares a cash distribution, then stockholders who participate in the DRIP will have their cash distribution reinvested in additional shares of the Company’s common stock, rather than receiving the cash distribution. The Company expects to use newly issued shares under the guidelines of the DRIP if the Company’s shares are trading at a premium to net asset value. The Company can purchase shares in the open market in connection with the obligations under the plan, and in particular, if the Company’s shares are trading at a significant discount to net asset value (“NAV”) and the Company is otherwise permitted under applicable law to purchase such shares, the Company intends to purchase shares in the open market in connection with any obligations under the DRIP.

In the event the market price per share of the Company’s common stock on the date of a distribution exceeds the most recently computed NAV per share of the common stock, the Company will issue shares of common stock to participants in the DRIP at the greater of the most recently computed NAV per share of common stock or 95% of the current market price per share of common stock (or such lesser discount to the current market price per share that still exceeds the most recently computed NAV per share of common stock).

Share repurchase plan: The Company has a share repurchase program (the “Program”) which allows the Company to repurchase the Company’s outstanding common stock on the open market at prices below the Company’s NAV as reported in its most recently published consolidated financial statements. The Board most recently reapproved the Program in August 2020 and the Program is implemented at the discretion of management. Shares can be purchased from time to time at prevailing market prices, through open market transactions, including block transactions. The Program permits repurchases up to $150,000 of the Company's common stock. Prior to August 6, 2019, the Program permitted up to $75,000 in repurchases. The Company did not make any repurchases of its common stock during each of the three and nine months ended June 30, 2020 and June 30, 2019.

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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Deferred debt issuance costs: Deferred debt issuance costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings. As of June 30, 2020 and September 30, 2019, the Company had deferred debt issuance costs of $4,597 and $4,939, respectively. These amounts are amortized and included in interest expense in the Consolidated Statements of Operations over the estimated average life of the borrowings. Amortization expense for deferred debt issuance costs for the three and nine months ended June 30, 2020, was $1,539 and $2,843, respectively. Amortization expense for deferred debt issuance costs for the three and nine months ended June 30, 2019, was $461 and $1,597, respectively.

Recent Accounting Pronouncements: In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU No. 2020-04 is elective and effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of adopting ASU No. 2020-04.

Note 3. Related Party Transactions

Investment Advisory Agreement: Under the Investment Advisory Agreement, the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, GBDC. The Board approved the Investment Advisory Agreement on July 11, 2019. The Board noted that the terms of the Investment Advisory Agreement did not change the calculation of the Capital Gain Incentive Fee or the management or incentive fee rates and that the changes, as compared to the Prior Investment Advisory Agreement, consisted of revisions to (i) exclude the impact of purchase accounting resulting from a merger, including the Merger, from the calculation of income subject to the income incentive fee payable and the calculation of the cumulative incentive fee cap under the Investment Advisory Agreement and (ii) convert the cumulative incentive fee cap into a per share calculation. At a meeting of the Company's stockholders held on September 4, 2019, the Company's stockholders voted to the approve the Investment Advisory Agreement, which was entered into and effective as of September 16, 2019, the closing of the Merger, and will continue for an initial two-year term. The Investment Adviser is a registered investment adviser with the SEC. The Investment Adviser receives fees for providing services, consisting of two components, a base management fee and an Incentive Fee (as defined below).

The base management fee is calculated at an annual rate equal to 1.375% of average adjusted gross assets at the end of the two most recently completed calendar quarters (including assets purchased with borrowed funds and securitization-related assets, leverage, unrealized depreciation or appreciation on derivative instruments and cash collateral on deposit with custodian but adjusted to exclude cash and cash equivalents so that investors do not pay the base management fee on such assets) and is payable quarterly in arrears. Additionally, the Investment Adviser voluntarily excludes any assets funded with secured borrowing proceeds from the base management fee calculation. The base management fee is adjusted, based on the actual number of days elapsed relative to the total number of days in such calendar quarter, for any share issuances or repurchases during such calendar quarter. For purposes of the Investment Advisory Agreement, cash equivalents mean U.S. government securities and commercial paper instruments maturing within 270 days of purchase (which is different than the GAAP definition, which defines cash equivalents as U.S. government securities and commercial paper instruments maturing within 90 days of purchase). To the extent that the Investment Adviser or any of its affiliates provides investment advisory, collateral management or other similar services to a subsidiary of the Company, the base management fee will be reduced by an amount equal to the product of (1) the total fees paid to the Investment Adviser by such subsidiary for such services and (2) the percentage of such subsidiary’s total equity, including membership interests and any class of notes not exclusively held by one or more third parties, that is owned, directly or indirectly, by the Company.

The Company has structured the calculation of the Incentive Fee to include a fee limitation such that an Incentive Fee for any quarter can only be paid to the Investment Adviser if, after such payment, the cumulative Incentive Fees paid to the Investment Adviser, calculated on a per share basis, since April 13, 2010, the effective date of the Company’s election to become a BDC, would be less than or equal to 20.0% of the Company’s Cumulative Pre-Incentive Fee Net Income (as defined below).

The Company accomplishes this limitation by subjecting each quarterly Incentive Fee payable under the Income and Capital Gain Incentive Fee Calculation (as defined below) to a cap (the “Incentive Fee Cap”). The Investment
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Advisory Agreement, as compared to the Prior Investment Advisory Agreement, converts the cumulative incentive fee cap from an aggregate basis calculation to a per share calculation. Under the Prior Investment Advisory Agreement, the Incentive Fee would not be paid at any time if, after such payment, the cumulative incentive fees paid to date would be greater than 20.0% of the Company's Cumulative Pre-Incentive Fee Net Income since April 13, 2010. Under the Investment Advisory Agreement, the Incentive Fee Cap in any quarter is equal to the difference between (a) 20.0% of Cumulative Pre-Incentive Fee Net Income Per Share (as defined below) and (b) Cumulative Incentive Fees Paid Per Share (as defined below). To the extent the Incentive Fee Cap is zero or a negative value in any quarter, no Incentive Fee would be payable in that quarter. If, for any relevant period, the Incentive Fee Cap calculation results in the Company paying less than the amount of the Incentive Fee calculated above, then the difference between the Incentive Fee and the Incentive Fee Cap will not be paid by GBDC and will not be received by the Investment Adviser as an Incentive Fee either at the end of such relevant period or at the end of any future period. “Cumulative Pre-Incentive Fee Net Income Per Share” equals the sum of “Pre-Incentive Fee Net Income Per Share” (as defined below) for each quarterly period since April 13, 2010. “Pre-Incentive Fee Net Income Per Share” equals the sum of (i) Pre-Incentive Fee Net Investment Income (as defined below) and (ii) Adjusted Capital Returns for the applicable period, divided by (b) the weighted average number of shares of GBDC common stock outstanding during such period. “Adjusted Capital Returns” for any period is the sum of the realized aggregate capital gains, realized aggregate capital losses, aggregate unrealized capital depreciation and aggregate unrealized capital appreciation for such period; provided that the calculation of realized aggregate capital gains, realized aggregate capital losses, aggregate unrealized capital depreciation and aggregate unrealized capital appreciation shall not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation resulting solely from the purchase accounting for any premium or discount paid for the acquisition of assets in a merger. “Cumulative Incentive Fees Paid Per Share” is equal to the sum of Incentive Fees Paid Per Share since April 13, 2010. “Incentive Fees Paid Per Share” for any period is equal to the Incentive Fees accrued and/or payable to the Company for such period, divided by the weighted average number of shares of common stock of GBDC during such period.

“Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the calendar quarter (including the base management fee, taxes, any expenses payable under the Investment Advisory Agreement and the Administration Agreement, any expenses of securitizations and any interest expense and dividends paid on any outstanding preferred stock, but excluding the Incentive Fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature such as market discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities, accrued income that the Company has not yet received in cash.

Incentive Fees are calculated and payable quarterly in arrears (or, upon termination of the Investment Advisory Agreement, as of the termination date).

The income and capital gains incentive fee calculation (the “Income and Capital Gain Incentive Fee Calculation”) has two parts, the income component (the “Income Incentive Fee”) and the capital gains component (the “Capital Gain Incentive Fee” and, together with the Income Incentive Fee, the “Incentive Fee”). The Income Incentive Fee is calculated quarterly in arrears based on the Company’s Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter.

For the three and nine months ended June 30, 2020, the Income Incentive Fee incurred was $3,081 and $12,832, respectively. For the three and nine months ended June 30, 2019, the Income Incentive Fee incurred was $3,501 and $9,697, respectively.

The Investment Advisory Agreement, as compared to the Prior Investment Advisory Agreement, excludes the impact of purchase accounting resulting from a merger, including the Merger, from the calculation of income subject to the Income Incentive Fee and the calculation of the Incentive Fee Cap. As a result, under the Investment Advisory Agreement, Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation or any amortization or accretion of any purchase premium or discount to interest income solely from the purchase accounting for any premium or discount paid for the acquisition of assets in a merger, such as the premium to net asset value paid for the shares of GCIC common
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

stock in the Merger. Because of the structure of the Income Incentive Fee, it is possible that an Incentive Fee is calculated under this formula with respect to a period in which the Company has incurred a loss. For example, if the Company receives Pre-Incentive Fee Net Investment Income in excess of the hurdle rate (as defined below) for a calendar quarter, the Income Incentive Fee will result in a positive value and an Incentive Fee will be paid even if the Company has incurred a loss in such period due to realized and/or unrealized capital losses unless the payment of such Incentive Fee would cause the Company to pay Incentive Fees on a cumulative basis that exceed the Incentive Fee Cap.
Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any Incentive Fees payable during the period) at the end of the immediately preceding calendar quarter, is compared to a fixed “hurdle rate” of 2.0% quarterly. If market interest rates rise, it is possible that the Company will be able to invest funds in debt instruments that provide for a higher return, which would increase Pre-Incentive Fee Net Investment Income and make it easier for the Investment Adviser to surpass the fixed hurdle rate and receive an Incentive Fee based on such net investment income.
The Company’s Pre-Incentive Fee Net Investment Income used to calculate this part of the Incentive Fee is also included in the amount of its total assets (excluding cash and cash equivalents but including assets purchased with borrowed funds and securitization-related assets, unrealized depreciation or appreciation on derivative instruments and cash collateral on deposit with custodian) used to calculate the 1.375% base management fee annual rate.

The Company calculates the Income Incentive Fee with respect to its Pre-Incentive Fee Net Investment Income quarterly, in arrears, as follows:

•Zero in any calendar quarter in which the Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate;
•100% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.5% in any calendar quarter. This portion of the Company’s Pre-Incentive Fee Net Investment Income (which exceeds the hurdle rate but is less than 2.5%) is referred to as the “catch-up” provision. The catch-up is meant to provide the Investment Adviser with 20.0% of the Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply if the Company’s Pre-Incentive Fee Net Investment Income exceeds 2.5% in any calendar quarter; and
•20.0% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.5% in any calendar quarter.

The Capital Gain Incentive Fee equals (a) 20.0% of the Company’s Capital Gain Incentive Fee Base (as defined below), if any, calculated in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), which commenced with the calendar year ending December 31, 2010, less (b) the aggregate amount of any previously paid Capital Gain Incentive Fees. The Capital Gain Incentive Fee is calculated in the same manner under the Investment Advisory Agreement as under the Prior Investment Advisory Agreement. The Company’s “Capital Gain Incentive Fee Base” equals (1) the sum of (i) realized capital gains, if any, on a cumulative positive basis from the date the Company elected to become a BDC through the end of each calendar year, (ii) all realized capital losses on a cumulative basis and (iii) all unrealized capital depreciation on a cumulative basis less (2) all unamortized deferred debt issuance costs, if and to the extent such costs exceed all unrealized capital appreciation on a cumulative basis.

•The cumulative aggregate realized capital losses are calculated as the sum of the amounts by which (a) the net sales price of each investment in the Company’s portfolio when sold is less than (b) the accreted or amortized cost basis of such investment.
•The cumulative aggregate realized capital gains are calculated as the sum of the differences, if positive, between (a) the net sales price of each investment in the Company’s portfolio when sold and (b) the accreted or amortized cost basis of such investment.
•The aggregate unrealized capital depreciation is calculated as the sum of the differences, if negative, between (a) the valuation of each investment in the Company’s portfolio as of the applicable Capital Gain Incentive Fee calculation date and (b) the accreted or amortized cost basis of such investment.

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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

In accordance with GAAP, the Company also is required to include the aggregate unrealized capital appreciation on investments in the calculation and accrue a capital gain incentive fee on a quarterly basis as if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under either the Prior Investment Advisory Agreement or Investment Advisory Agreement, as applicable. If the Capital Gain Incentive Fee Base, adjusted as required by GAAP to include unrealized capital appreciation, is positive at the end of a period, then GAAP requires the Company to accrue a capital gain incentive fee equal to 20% of such amount, less the aggregate amount of the actual Capital Gain Incentive Fees paid and capital gain incentive fees accrued under GAAP in all prior periods. If such amount is negative, then there is no accrual for such period. The resulting accrual under GAAP in a given period results in additional expense if such cumulative amount is greater than in the prior period or a reversal of previously recorded expense if such cumulative amount is less than in the prior period. There can be no assurance that such unrealized capital appreciation will be realized in the future. For the three and nine months ended June 30, 2020, the Company did not accrue a capital gain incentive fee. For the three and nine months ended June 30, 2019, the Company accrued a capital gain incentive fee of $28 and a reversal of $1,119, respectively. Changes in the accrual for the capital gain incentive fee are included in incentive fee in the Consolidated Statements of Operations. As of June 30, 2020 and September 30, 2019, there was no cumulative accrual of capital gain incentive fees under GAAP included in management and incentive fees payable on the Consolidated Statements of Financial Condition.

As of June 30, 2020 and September 30, 2019, there was no Capital Gain Incentive Fee payable as calculated under the Investment Advisory Agreement as described above. Any payment due under the terms of the Investment Advisory Agreement or the Prior Investment Advisory Agreement, as applicable, is calculated in arrears at the end of each calendar year.

Administration Agreement:  Under the Administration Agreement, the Administrator furnishes the Company with office facilities and equipment, provides the Company with clerical, bookkeeping and record keeping services at such facilities and provides the Company with other administrative services as the Administrator, subject to review by the Board, determines necessary to conduct the Company’s day-to-day operations. The Company reimburses the Administrator the allocable portion of overhead and other expenses incurred by it in performing its obligations under the Administration Agreement, including rent, fees and expenses associated with performing compliance functions and the Company's allocable portion of the cost of its chief financial officer and chief compliance officer and their respective staffs. The Board reviews such expenses to determine that these expenses, including any allocation of expenses among the Company and other entities for which the Administrator provides similar services, are reasonable and comparable to administrative services charged by unaffiliated third party asset managers. Under the Administration Agreement, the Administrator also provides, on the Company’s behalf, managerial assistance to those portfolio companies to which the Company is required to provide such assistance and will be paid an additional amount based on the cost of the services provided, which amount shall not exceed the amount the Company receives from such portfolio companies.

Included in accounts payable and other liabilities is $1,613 and $639 as of June 30, 2020 and September 30, 2019, respectively, for accrued allocated shared services under the Administration Agreement. As of September 30, 2019, also included in accounts payable and other liabilities, is $763 of accrued allocated shared service fees payable to the Administrator that was assumed from GCIC in the Merger, which were paid by the Company to the Administrator in December 2019.

Other related party transactions:  The Administrator pays for certain unaffiliated third-party expenses incurred by the Company. Such expenses include postage, printing, office supplies, rating agency fees and professional fees. These expenses are not marked-up and represent the same amount the Company would have paid had the Company paid the expenses directly. These expenses are subsequently reimbursed in cash.

Total expenses reimbursed to the Administrator during the three and nine months ended June 30, 2020 were $856 and $4,146, respectively. Total expenses reimbursed to the Administrator during the three and nine months ended June 30, 2019 were $338 and $1,547, respectively.

As of June 30, 2020 and September 30, 2019, included in accounts payable and other liabilities were $2,232 and $922, respectively, for expenses paid on behalf of the Company by the Administrator. As of September 30, 2019, also included in accounts payable and other liabilities was $763 of expenses paid on behalf of GCIC by the
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Administrator and were assumed in the Merger and were paid by the Company to the Administrator in December 2019.

As of September 30, 2019, included in accounts payable and other liabilities were $3,394 for an income incentive fee, $1,377 for a capital gain incentive fee, $4,464 for base management fees and $10,071 for a subordinated liquidation fee, each of which were payable by GCIC pursuant to its investment advisory agreement with the Investment Adviser and was assumed in the Merger. In October 2019, the Company paid the Investment Adviser the outstanding payable balances assumed in the Merger. The investment advisory agreement between the Investment Adviser and GCIC was terminated in connection with the closing of the Merger.

On June 22, 2016, the Company entered into an unsecured revolving credit facility with the Investment Adviser (as amended, the “Adviser Revolver”) with a maximum credit limit of $20,000 and expiration date of June 22, 2019. On June 21, 2019, the Company entered into an amendment to the Adviser Revolver to, among other things, (a) extend the maturity date from June 22, 2019 to June 21, 2022 and (b) increase the borrowing capacity from $20,000 to $40,000. On October 28, 2019, the Company entered into an amendment to the Adviser Revolver to, among other things, increase the borrowing capacity under the Adviser Revolver from $40,000 to $100,000. Refer to Note 7. Borrowings for discussion of the Adviser Revolver.

Effective September 16, 2019, the Company assumed, as a result of the Merger, an unsecured revolving credit facility with the Investment Adviser (“Adviser Revolver II”) that had a credit limit of $40,000. In connection with the amendment to the Adviser Revolver on October 28, 2019, the Company terminated the Adviser Revolver II.

On September 16, 2019, the Company completed its acquisition of GCIC. As a result, the Company also acquired its investment in GCIC SLF. Refer to Note 1 for more information regarding the Merger.

On January 1, 2020, SLF and GCIC SLF became wholly-owned subsidiaries of the Company through the Purchase Agreement as described in Note 1. As a result, SLF's and GCIC SLF's administrative service fee agreements with the Administrator were terminated, effective on January 1, 2020. The outstanding payables to the Administrator for SLF and GCIC SLF of $249 and $178, respectively, were assumed by the Company as a result of the Purchase Agreement and were paid in March 2020.

As discussed in Note 11, 3,191,448 shares were purchased in the rights offering by affiliates of the Investment Adviser.

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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Note 4. Investments

Investments as of June 30, 2020 and September 30, 2019 consisted of the following:
As of June 30, 2020As of September 30, 2019
  PrincipalAmortized
Cost		Fair
Value		PrincipalAmortized
Cost		Fair
Value
Senior secured$656,048  $649,601  $604,452  $601,788  $605,606  $589,340  
One stop3,698,347  3,721,489  3,548,148  3,514,266  3,559,030  3,474,116  
Second lien20,418  20,670  20,418  19,473  19,745  19,473  
Subordinated debt534  539  560  369  375  369  
LLC equity interests in the SLFs(1)(2)
N/A—  —  N/A127,487  123,644  
EquityN/A82,423  76,792  N/A79,527  85,990  
Total$4,375,347  $4,474,722  $4,250,370  $4,135,896  $4,391,770  $4,292,932  

(1)SLF’s and GCIC SLF's proceeds from the LLC equity interests invested in SLF and GCIC SLF, respectively, were utilized to invest in senior secured loans.
(2)Effective January 1, 2020, SLF's and GCIC SLF's investments were consolidated into the Company. Refer to Note 1.
The following tables show the portfolio composition by geographic region at amortized cost and fair value as a percentage of total investments in portfolio companies. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which is not always indicative of the primary source of the portfolio company’s business.
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

As of June 30, 2020As of September 30, 2019
Amortized Cost:        
United States        
Mid-Atlantic$874,530  19.5 %$919,868  21.0 %
Midwest903,052  20.2  985,471  22.4  
West716,544  16.0  748,104  17.0  
Southeast1,040,919  23.3  944,794  21.5  
Southwest476,837  10.7  453,239  10.3  
Northeast325,816  7.3  217,138  4.9  
Canada100,672  2.2  99,823  2.3  
United Kingdom21,251  0.5  21,080  0.5  
Australia14,050  0.3  2,253  0.1  
Luxembourg974  0.0 *—  —  
Andorra 77  0.0 *—  —  
Total$4,474,722  100.0 %$4,391,770  100.0 %
Fair Value:        
United States        
Mid-Atlantic$839,893  19.8 %$896,202  20.9 %
Midwest859,586  20.2  959,894  22.4  
West674,719  15.9  732,599  17.1  
Southeast987,506  23.2  929,922  21.6  
Southwest451,127  10.6  442,744  10.3  
Northeast309,138  7.3  211,920  4.9  
Canada95,192  2.2  97,392  2.3  
United Kingdom19,848  0.5  20,082  0.5  
Australia12,411  0.3  2,177  0.0 *
Luxembourg898  0.0 *—  —  
Andorra52  0.0 *—  —  
Total$4,250,370  100.0 %$4,292,932  100.0 %
* Represents an amount less than 0.1%.

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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

The industry compositions of the portfolio at amortized cost and fair value as of June 30, 2020 and September 30, 2019 were as follows:
As of June 30, 2020As of September 30, 2019
Amortized Cost:        
Aerospace and Defense$101,147  2.3 %$92,797  2.1 %
Automobile73,428  1.6  70,401  1.6  
Beverage, Food and Tobacco243,637  5.4  257,594  5.9  
Broadcasting and Entertainment—  —  2,136  0.0 *
Buildings and Real Estate55,882  1.2  134,083  3.0  
Chemicals, Plastics and Rubber31,308  0.7  19,184  0.4  
Containers, Packaging and Glass3,815  0.1  —  —  
Diversified/Conglomerate Manufacturing146,809  3.3  127,441  2.9  
Diversified/Conglomerate Service1,623,189  36.3  1,470,501  33.5  
Ecological 45,548  1.0  44,573  1.0  
Electronics254,651  5.7  257,587  5.9  
Finance19,373  0.4  19,532  0.4  
Grocery7,964  0.2  444  0.0 *
Healthcare, Education and Childcare845,867  18.9  772,226  17.6  
Home and Office Furnishings, Housewares, and Durable Consumer31,726  0.7  21,551  0.5  
Hotels, Motels, Inns, and Gaming9,586  0.2  8,463  0.2  
Insurance97,853  2.2  105,238  2.4  
Investment Funds and Vehicles—  —  127,487  2.9  
Leisure, Amusement, Motion Pictures, Entertainment209,836  4.7  186,894  4.3  
Mining, Steel, Iron and Non-Precious Metals4,734  0.1  4,794  0.1  
Oil and Gas55,962  1.3  36,237  0.8  
Personal and Non Durable Consumer Products (Mfg. Only)75,059  1.7  73,146  1.7  
Personal, Food and Miscellaneous Services180,251  4.0  214,582  4.9  
Printing and Publishing18,805  0.4  10,787  0.2  
Retail Stores308,979  6.9  302,054  6.9  
Telecommunications11,161  0.3  11,832  0.3  
Textiles and Leather4,167  0.1  4,080  0.1  
Utilities13,985  0.3  16,126  0.4  
Total$4,474,722  100.0 %$4,391,770  100.0 %
* Represents an amount less than 0.1%.
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)


As of June 30, 2020As of September 30, 2019
Fair Value:        
Aerospace and Defense$95,737  2.3 %$91,651  2.1 %
Automobile71,837  1.7  69,820  1.6  
Beverage, Food and Tobacco222,541  5.2  252,588  5.9  
Broadcasting and Entertainment—  —  2,108  0.1  
Buildings and Real Estate56,335  1.3  133,053  3.1  
Chemicals, Plastics and Rubber30,058  0.7  18,922  0.4  
Containers, Packaging and Glass3,811  0.1  —  —  
Diversified/Conglomerate Manufacturing138,058  3.2  124,040  2.9  
Diversified/Conglomerate Service1,578,091  37.1  1,442,750  33.6  
Ecological45,072  1.1  43,857  1.0  
Electronics248,136  5.8  249,678  5.8  
Finance18,588  0.4  18,883  0.4  
Grocery7,894  0.2  411  0.0 *
Healthcare, Education and Childcare771,299  18.1  746,484  17.4  
Home and Office Furnishings, Housewares, and Durable Consumer28,783  0.7  20,894  0.5  
Hotels, Motels, Inns, and Gaming6,757  0.2  8,419  0.2  
Insurance98,493  2.3  104,086  2.4  
Investment Funds and Vehicles—  —  123,644  2.9  
Leisure, Amusement, Motion Pictures, Entertainment189,195  4.5  183,836  4.3  
Mining, Steel, Iron and Non-Precious Metals2,610  0.1  3,747  0.1  
Oil and Gas53,343  1.3  35,612  0.8  
Personal and Non Durable Consumer Products (Mfg. Only)68,991  1.6  73,444  1.7  
Personal, Food and Miscellaneous Services174,507  4.1  208,728  4.9  
Printing and Publishing17,096  0.4  10,427  0.2  
Retail Stores294,497  6.9  294,463  6.9  
Telecommunications11,031  0.3  11,627  0.3  
Textiles and Leather3,761  0.1  3,927  0.1  
Utilities13,849  0.3  15,833  0.4  
Total$4,250,370  100.0 %$4,292,932  100.0 %
* Represents an amount less than 0.1%.

Senior Loan Fund LLC:

Effective January 1, 2020, the Company purchased the remaining equity interests in SLF from RGA and consolidated SLF's assets and liabilities into the Company's financial statements and notes. Prior to January 1, 2020, the Company co-invested with RGA in senior secured loans through SLF, an unconsolidated Delaware LLC. SLF was capitalized as transactions were completed and all portfolio and investment decisions in respect of SLF were approved by the SLF investment committee consisting of two representatives of each of the Company and RGA (with unanimous approval required from (i) one representative of each of the Company and RGA or (ii) both representatives of each of the Company and RGA). SLF could have ceased making new investments upon notification of either member but operations would have continued until all investments were sold or paid-off in the normal course of business. Investments held by SLF were measured at fair value using the same valuation methodologies as described in Note 6.

As of September 30, 2019, SLF was capitalized by LLC equity interest subscriptions from its members. As of September 30, 2019, the Company and RGA owned 87.5% and 12.5%, respectively, of the LLC equity interests of SLF. SLF’s profits and losses were allocated to the Company and RGA in accordance with their respective ownership interests.

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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

As of September 30, 2019, SLF had the following commitments from its members (in the aggregate):
As of September 30, 2019
  Committed
Funded(1)
LLC equity commitments$200,000  $85,580  
Total$200,000  $85,580  

(1)Funded LLC equity commitments are presented net of return of capital distributions subject to recall.
SLF entered into a senior secured revolving credit facility (as amended, the “SLF Credit Facility”) with Wells Fargo Bank, N.A., through its wholly-owned subsidiary SLF II, which allowed SLF II, as of September 30, 2019, to borrow up to $75,581 at any one time outstanding, subject to leverage and borrowing base restrictions. The SLF Credit Facility bore interest at one-month LIBOR plus 2.05% per annum. Effective January 1, 2020, the Company assumed, as a result of the Purchase Agreement, the SLF Credit Facility.

As of September 30, 2019, SLF had total assets at fair value of $161,018. As of September 30, 2019, SLF had loans in two portfolio companies on non-accrual status with a fair value of $4,987. The portfolio companies in SLF were in industries and geographies similar to those in which the Company invests directly. Additionally, as of September 30, 2019, SLF had commitments to fund various undrawn revolvers and delayed draw investments to its portfolio companies totaling $3,377.

Below is a summary of SLF’s senior secured loan portfolio, followed by a listing of the individual investments in SLF’s portfolio as of September 30, 2019:
  As of September 30, 2019
Senior secured loans(1)
$154,254  
Weighted average current interest rate on senior secured loans(2)
7.4 %
Number of borrowers in SLF27  
Largest portfolio company investment(1)
$12,654  
Total of five largest portfolio company investments(1)
$54,268  

(1)At principal amount.
(2)Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at principal amount.
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)


SLF Investment Portfolio as of September 30, 2019
Portfolio CompanyBusiness DescriptionSecurity TypeMaturity
Date
Current
Interest
Rate(1)
Principal ($) /
Shares(2)
Fair
Value(3)
1A Smart Start LLC(4)
 Home and Office Furnishings, Housewares, and Durable Consumer Senior loan02/2022 6.5%$2,961  $2,961  
Advanced Pain Management Holdings, Inc.(4)(5)
 Healthcare, Education and Childcare Senior loan12/2019 7.16,172  3,703  
Advanced Pain Management Holdings, Inc.(4)(5)
 Healthcare, Education and Childcare Senior loan12/2019 7.1422  253  
Advanced Pain Management Holdings, Inc.(4)(5)(7)
 Healthcare, Education and Childcare Senior loan12/2019 7.1193  (8) 
Advanced Pain Management Holdings, Inc.(4)(5)
 Healthcare, Education and Childcare Senior loan12/2019 10.62,139  4  
Boot Barn, Inc.(4)
 Retail Stores Senior loan06/2023 6.66,022  6,022  
Brandmuscle, Inc. Printing and Publishing Senior loan12/2021 6.94,418  4,415  
Brandmuscle, Inc. Printing and Publishing Senior loan12/2021 
N/A(6)
—  —  
Captain D's, LLC(4)
 Personal, Food and Miscellaneous Services Senior loan12/2023 6.52,433  2,433  
Captain D's, LLC(4)
 Personal, Food and Miscellaneous Services Senior loan12/2023 7.517  17  
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan12/2020 7.48,415  8,415  
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan12/2020 7.44,239  4,239  
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan10/2021 7.52,392  2,392  
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan10/2021 7.51,203  1,203  
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan10/2021 7.558  58  
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan10/2021 7.540  40  
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan10/2021 
N/A(6)
—  —  
DISA Holdings Acquisition Subsidiary Corp.(4)
 Diversified/Conglomerate Service Senior loan06/2022 7.14,773  4,773  
DISA Holdings Acquisition Subsidiary Corp.(4)
 Diversified/Conglomerate Service Senior loan06/2022 6.053  53  
Flexan, LLC Chemicals, Plastics and Rubber Senior loan02/2020 7.95,905  5,905  
Flexan, LLC Chemicals, Plastics and Rubber Senior loan02/2020 7.91,640  1,640  
Flexan, LLC(4)
 Chemicals, Plastics and Rubber Senior loan02/2020 9.5431  431  
Gamma Technologies, LLC(4)
 Electronics Senior loan06/2024 7.310,084  10,084  
III US Holdings, LLC Diversified/Conglomerate Service Senior loan09/2022 8.14,288  4,288  
Jensen Hughes, Inc. Buildings and Real Estate Senior loan03/2024 6.62,276  2,276  
Jensen Hughes, Inc. Buildings and Real Estate Senior loan03/2024 6.6118  118  
Jensen Hughes, Inc. Buildings and Real Estate Senior loan03/2024 6.663  63  
Joerns Healthcare, LLC(4)
 Healthcare, Education and Childcare Senior loan08/2024 8.21,286  1,286  
Joerns Healthcare, LLC(4)
 Healthcare, Education and Childcare Senior loan08/2024 8.21,338  1,338  
Mediaocean LLC Diversified/Conglomerate Service Senior loan08/2020 
N/A(6)
—  —  
Paradigm DKD Group, LLC(4)(5)
 Buildings and Real Estate Senior loan05/2022 8.41,480  1,094  
Paradigm DKD Group, LLC(4)(5)(7)
 Buildings and Real Estate Senior loan05/2022 8.4(16) (59) 
Pasternack Enterprises, Inc. and Fairview Microwave, Inc(4)
 Diversified/Conglomerate Manufacturing Senior loan07/2025 6.05,264  5,264  
Polk Acquisition Corp.(4)
 Automobile Senior loan06/2022 7.34,465  4,376  
Polk Acquisition Corp.(4)
 Automobile Senior loan06/2022 7.360  58  
Polk Acquisition Corp. Automobile Senior loan06/2022 7.352  51  
Pyramid Healthcare, Inc.(4)
 Healthcare, Education and Childcare Senior loan08/2020 8.810,047  10,047  
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan08/2020 9.2257  257  
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan08/2020 8.8147  147  
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan08/2020 8.899  99  
RSC Acquisition, Inc.(4)
 Insurance Senior loan11/2022 6.43,785  3,785  
RSC Acquisition, Inc.(4)
 Insurance Senior loan11/2021 
N/A(6)
—  —  
Rubio's Restaurants, Inc(4)
 Beverage, Food and Tobacco Senior loan10/2019 9.14,890  4,890  
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

SLF Investment Portfolio as of September 30, 2019
Portfolio CompanyBusiness DescriptionSecurity TypeMaturity
Date
Current
Interest
Rate(1)
Principal ($) /
Shares(2)
Fair
Value(3)
Sage Dental Management, LLC  Healthcare, Education and Childcare Senior loan12/2020 7.35 cash/1.00 PIK%$4,341  $3,907  
Sage Dental Management, LLC  Healthcare, Education and Childcare Senior loan12/2020 8.470  62  
Sage Dental Management, LLC  Healthcare, Education and Childcare Senior loan12/2020 8.463  57  
Sage Dental Management, LLC  Healthcare, Education and Childcare Senior loan12/2020 8.445  40  
SEI, Inc.(4)
 Electronics Senior loan07/2023 6.811,004  11,004  
SEI, Inc. Electronics Senior loan07/2023 
N/A(6)
—  —  
Self Esteem Brands, LLC(4)
 Leisure, Amusement, Motion Pictures, Entertainment Senior loan02/2022 6.39,561  9,561  
Self Esteem Brands, LLC(4)
 Leisure, Amusement, Motion Pictures, Entertainment Senior loan02/2022 8.3415  415  
Teasdale Quality Foods, Inc. Grocery Senior loan10/2020 7.94,190  3,771  
Teasdale Quality Foods, Inc. Grocery Senior loan10/2020 7.93,285  2,956  
Teasdale Quality Foods, Inc. Grocery Senior loan10/2020 7.9567  511  
Teasdale Quality Foods, Inc.(4)
 Grocery Senior loan10/2020 7.9424  382  
Teasdale Quality Foods, Inc. Grocery Senior loan10/2020 7.9210  189  
Upstream Intermediate, LLC Healthcare, Education and Childcare Senior loan01/2024 6.02,796  2,796  
WHCG Management, LLC(4)
 Healthcare, Education and Childcare Senior loan03/2023 8.17,820  7,820  
WIRB-Copernicus Group, Inc.(4)
 Healthcare, Education and Childcare Senior loan08/2022 6.45,554  5,554  
Total senior loan investments$154,254  $147,436  
Paradigm DKD Group, LLC(4)(8)(9)
 Buildings and Real Estate LLC units N/A N/A$170  $62  
Paradigm DKD Group, LLC(4)(8)(9)
 Buildings and Real Estate LLC units N/A N/A963  —  
Paradigm DKD Group, LLC(4)(8)(9)
 Buildings and Real Estate LLC units N/A N/A34  —  
Joerns Healthcare, LLC(4)(8)(9)
 Healthcare, Education and Childcare Common Stock N/A N/A309  3,017  
W3 Co. (8)(9)
Oil and GasLLC unitsN/AN/A3  1,526  
W3 Co. (8)(9)
Oil and GasPreferred stockN/AN/A—  218  
Total equity investments$4,823  
             Total investments$154,254  $152,259  

(1)Represents the weighted average annual current interest rate as of September 30, 2019. All interest rates are payable in cash, except where PIK is shown.
(2)The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.
(3)Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board's valuation process described elsewhere herein.
(4)The Company also held a portion of the first lien senior secured loan in this portfolio company as of September 30, 2019.
(5)Loan was on non-accrual status as of September 30, 2019. As such, no interest is being earned on this investment.
(6)The entire commitment was unfunded as of September 30, 2019. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.
(7)The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par.
(8)Equity investment received as a result of the portfolio company's debt restructuring.
(9)Non-income producing.
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

As of September 30, 2019, the Company had committed to fund $175,000 of LLC equity interest subscriptions to SLF. As of September 30, 2019, $74,883 of the Company’s LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall. Immediately prior to the Purchase Agreement, $70,507 of the Company's LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall. For the three and nine months ended June 30, 2020 and 2019, the Company received no dividend income from the LLC equity interests in SLF.

See below for certain summarized financial information for SLF as of September 30, 2019 and for the three months ended December 31, 2019 and the three and nine months ended June 30, 2019:
  As of September 30, 2019
Selected Balance Sheet Information:  
Investments, at fair value$152,259  
Cash and other assets8,759  
Total assets$161,018  
Senior credit facility$75,581  
Other liabilities424  
Total liabilities76,005  
Members’ equity85,013  
Total liabilities and members' equity$161,018  

Three months ended December 31,Three months ended June 30,Nine months ended June 30,
  201920192019
Selected Statement of Operations Information:      
Interest income$2,800  $3,217  $10,392  
Fee income—  —  9  
Total investment income2,800  3,217  10,401  
Interest and other debt financing expense634  980  3,300  
Administrative service fee61  65  209  
Other expenses(15) 23  72  
Total expenses680  1,068  3,581  
Net investment income2,120  2,149  6,820  
Net realized gain (loss) on investments—  —  (1,315) 
Net change in unrealized appreciation (depreciation) on investments(1,603) (2,149) (4,153) 
Net increase (decrease) in members' equity$517  $—  $1,352  

GCIC Senior Loan Fund LLC:

Effective January 1, 2020, the Company purchased the remaining equity interests in GCIC SLF from Aurora and consolidated GCIC SLF's assets and liabilities into the Company's financial statements and notes. Following the acquisition of GCIC SLF in the Merger, the Company co-invested with Aurora, a wholly-owned subsidiary of RGA Reinsurance Company, in senior secured loans through GCIC SLF, an unconsolidated Delaware LLC. The Company acquired the investment in GCIC SLF through its acquisition of GCIC on September 16, 2019. GCIC SLF was capitalized as transactions were completed and all portfolio and investment decisions in respect of GCIC SLF were approved by the GCIC SLF investment committee consisting of two representatives of each of the Company and Aurora (with unanimous approval required from (i) one representative of each of the Company and Aurora or (ii) both representatives of each of the Company and Aurora). GCIC SLF could have ceased making new investments upon notification of either member but operations would have continued until all investments were sold
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

or paid-off in the normal course of business. Investments held by GCIC SLF were measured at fair value by GCIC SLF using the same valuation methodologies as described in Note 6.

As of September 30, 2019, GCIC SLF was capitalized by LLC equity interest subscriptions from its members. As of September 30, 2019, the Company and Aurora owned 87.5% and 12.5%, respectively, of the LLC equity interests of GCIC SLF. GCIC SLF’s profits and losses were allocated to its members in accordance with their respective ownership interests.

As of September 30, 2019, GCIC SLF had the following commitments from its members (in the aggregate):
As of September 30, 2019
  Committed
Funded(1)
LLC equity commitments$125,000  $55,264  
Total$125,000  $55,264  

(1)Funded LLC equity commitments are presented net of return of capital distributions subject to recall.
GCIC SLF entered into a senior secured revolving credit facility (as amended, the “GCIC SLF Credit Facility”) with Wells Fargo Bank, N.A. through its wholly-owned subsidiary, GCIC SLF II, which allowed GCIC SLF II, as of September 30, 2019, to borrow up to $59,559 at any one time outstanding, subject to leverage and borrowing base restrictions. The GCIC SLF Credit Facility bore interest at one-month LIBOR plus 2.05%. Effective January 1, 2020, the Company assumed, as a result of the Purchase Agreement, the GCIC SLF Credit Facility.

As of September 30, 2019, GCIC SLF had total assets at fair value of $116,195. As of September 30, 2019, GCIC SLF did not have any investments on non-accrual status. The portfolio companies in GCIC SLF were in industries and geographies similar to those in which the Company invests directly. Additionally, as of September 30, 2019, GCIC SLF had commitments to fund various undrawn revolvers and delayed draw investments to its portfolio companies totaling $7,011.

Below is a summary of GCIC SLF’s portfolio, followed by a listing of the individual investments in GCIC SLF’s portfolio as of September 30, 2019:
  As of September 30, 2019
Senior secured loans (1)
$112,864  
Weighted average current interest rate on senior secured loans (2)
7.2 %
Number of borrowers in GCIC SLF28  
Largest portfolio company investment (1)
$8,464  
Total of five largest portfolio company investments (1)
$34,273  

(1)At principal amount.
(2)Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at principal amount.








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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

GCIC SLF Investment Portfolio as of September 30, 2019
Portfolio CompanyBusiness DescriptionSecurity TypeMaturity
Date
Current
Interest
Rate(1)
Principal ($)
Fair
Value(2)
1A Smart Start LLC(3)
 Home and Office Furnishings, Housewares, and Durable Consumer Senior loan 02/2022 6.5  %$1,910  $1,910  
Boot Barn, Inc.(3)
 Retail Stores Senior loan 06/2023 6.6   3,159  3,159  
Brandmuscle, Inc.(3)
 Printing and Publishing Senior loan 12/2021 
N/A(4)
 —  —  
Brandmuscle, Inc.(3)
 Printing and Publishing Senior loan 12/2021 6.9   3,800  3,797  
Captain D's, LLC(3)
 Personal, Food and Miscellaneous Services Senior loan 12/2023 7.5   33  33  
Captain D's, LLC(3)
 Personal, Food and Miscellaneous Services Senior loan 12/2023 6.5   5,792  5,792  
CLP Healthcare Services, Inc.(3)
 Healthcare, Education and Childcare Senior loan 12/2020 7.4   2,007  2,007  
CLP Healthcare Services, Inc.(3)
 Healthcare, Education and Childcare Senior loan 12/2020 7.4   1,011  1,011  
Community Veterinary Partners, LLC(3)
 Personal, Food and Miscellaneous Services Senior loan 10/2021 
N/A(4)
 —  —  
Community Veterinary Partners, LLC(3)
 Personal, Food and Miscellaneous Services Senior loan 10/2021 7.5   2,053  2,053  
Community Veterinary Partners, LLC(3)
 Personal, Food and Miscellaneous Services Senior loan 10/2021 7.5   1,032  1,032  
Community Veterinary Partners, LLC(3)
 Personal, Food and Miscellaneous Services Senior loan 10/2021 7.5   40  40  
Community Veterinary Partners, LLC(3)
 Personal, Food and Miscellaneous Services Senior loan 10/2021 7.5   58  58  
Elite Sportswear, L.P.(3)
 Retail Stores Senior loan 12/2021 8.5   121  99  
Elite Sportswear, L.P.(3)
 Retail Stores Senior loan 12/2021 8.4   1,128  1,061  
Elite Sportswear, L.P.(3)
 Retail Stores Senior loan 12/2021 8.4   581  546  
Elite Sportswear, L.P.(3)
 Retail Stores Senior loan 12/2021 8.4   88  83  
Elite Sportswear, L.P.(3)
 Retail Stores Senior loan 12/2021 8.4   2,806  2,638  
Elite Sportswear, L.P.(3)
 Retail Stores Senior loan 12/2021 8.5   7  6  
Elite Sportswear, L.P.(3)
 Retail Stores Senior loan 12/2021 8.4   84  79  
Elite Sportswear, L.P.(3)
 Retail Stores Senior loan 12/2021 8.4   198  186  
Flexan, LLC(3)
 Chemicals, Plastics and Rubber Senior loan 02/2020 9.5   192  192  
Flexan, LLC(3)
 Chemicals, Plastics and Rubber Senior loan 02/2020 7.9   2,635  2,635  
Flexan, LLC(3)
 Chemicals, Plastics and Rubber Senior loan 02/2020 7.9   732  732  
G & H Wire Company, Inc(3)
 Healthcare, Education and Childcare Senior loan 09/2023 7.8   5,284  5,284  
Gamma Technologies, LLC(3)
 Electronics Senior loan 06/2024 7.3   4,334  4,334  
III US Holdings, LLC(3)
 Diversified/Conglomerate Service Senior loan 09/2022 8.1   4,253  4,253  
Jensen Hughes, Inc.(3)
 Buildings and Real Estate Senior loan 03/2024 6.6   1,958  1,958  
Jensen Hughes, Inc.(3)
 Buildings and Real Estate Senior loan 03/2024 6.6   102  102  
Jensen Hughes, Inc.(3)
 Buildings and Real Estate Senior loan 03/2024 6.6   54  54  
Mediaocean LLC(3)
 Diversified/Conglomerate Service Senior loan 08/2020 
N/A(4)
 —  —  
Mills Fleet Farm Group LLC(3)
 Retail Stores Senior loan 10/2024 8.3   5,955  5,657  
NBC Intermediate, LLC(3)
 Beverage, Food and Tobacco Senior loan 09/2023 
N/A(4)
 —  —  
NBC Intermediate, LLC(3)
 Beverage, Food and Tobacco Senior loan 09/2023 6.5   2,565  2,565  
Pasternack Enterprises, Inc. and Fairview Microwave, Inc(3)
 Diversified/Conglomerate Manufacturing Senior loan 07/2025 6.0   4,913  4,913  
Polk Acquisition Corp.(3)
 Automobile Senior loan 06/2022 7.3   8,125  7,962  
Polk Acquisition Corp.(3)
 Automobile Senior loan 06/2022 7.3   60  58  
Polk Acquisition Corp.(3)
 Automobile Senior loan 06/2022 7.3   52  51  
Pyramid Healthcare, Inc.(3)
 Healthcare, Education and Childcare Senior loan 08/2020 9.2   68  68  
Pyramid Healthcare, Inc.(3)
 Healthcare, Education and Childcare Senior loan 08/2020 8.8   2,426  2,426  
Pyramid Healthcare, Inc.(3)
 Healthcare, Education and Childcare Senior loan 08/2020 8.8   147  147  
Pyramid Healthcare, Inc.(3)
 Healthcare, Education and Childcare Senior loan 08/2020 8.8   367  367  
Reladyne, Inc.(3)
 Diversified/Conglomerate Manufacturing Senior loan 07/2022 7.3   5,909  5,909  
Reladyne, Inc.(3)
 Diversified/Conglomerate Manufacturing Senior loan 07/2022 7.3   621  621  
Reladyne, Inc.(3)
 Diversified/Conglomerate Manufacturing Senior loan 07/2022 7.3  1,152  1,152  
Reladyne, Inc.(3)
 Diversified/Conglomerate Manufacturing Senior loan 07/2022 7.3  537  537  
Reladyne, Inc.(3)
 Diversified/Conglomerate Manufacturing Senior loan 07/2022 7.3   245  245  
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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

GCIC SLF Investment Portfolio as of September 30, 2019
Portfolio CompanyBusiness DescriptionSecurity TypeMaturity
Date
Current
Interest
Rate(1)
Principal ($)
Fair
Value(2)
RSC Acquisition, Inc.(3)
 Insurance Senior loan 11/2021 
N/A(4)
%$—  $—  
RSC Acquisition, Inc.(3)
 Insurance Senior loan 11/2022 6.4   3,255  3,255  
Rubio's Restaurants, Inc(3)
 Beverage, Food and Tobacco Senior loan 10/2019 9.1   1,641  1,641  
SEI, Inc.(3)
 Electronics Senior loan 07/2023 6.8   4,154  4,154  
SEI, Inc.(3)
 Electronics Senior loan 07/2023 
N/A(4)
 —  —  
Self Esteem Brands, LLC(3)
 Leisure, Amusement, Motion Pictures, Entertainment Senior loan 02/2022 6.3   5,445  5,445  
Self Esteem Brands, LLC(3)
 Leisure, Amusement, Motion Pictures, Entertainment Senior loan 02/2022 8.3   498  498  
Summit Behavioral Healthcare, LLC(3)
 Healthcare, Education and Childcare Senior loan 10/2023 6.9   100  94  
Summit Behavioral Healthcare, LLC(3)
 Healthcare, Education and Childcare Senior loan 10/2023 6.9   5,895  5,600  
Summit Behavioral Healthcare, LLC(3)
 Healthcare, Education and Childcare Senior loan 10/2023 6.9   290  276  
Teasdale Quality Foods, Inc.(3)
 Grocery Senior loan 10/2020 7.9   1,009  908  
Teasdale Quality Foods, Inc.(3)
 Grocery Senior loan 10/2020 7.9   137  123  
Teasdale Quality Foods, Inc.(3)
 Grocery Senior loan 10/2020 7.9   51  46  
Teasdale Quality Foods, Inc.(3)
 Grocery Senior loan 10/2020 7.9   791  712  
Upstream Intermediate, LLC(3)
 Healthcare, Education and Childcare Senior loan 01/2024 6.0   3,532  3,532  
WHCG Management, LLC(3)
 Healthcare, Education and Childcare Senior loan 03/2023 8.1   2,158  2,158  
WHCG Management, LLC(3)
 Healthcare, Education and Childcare Senior loan 03/2023 
N/A(4)
 —  —  
WIRB-Copernicus Group, Inc.(3)
 Healthcare, Education and Childcare Senior loan 08/2022 6.4   5,314  5,314  
Total investments$112,864  $111,568  

(1)Represents the weighted average annual current interest rate as of September 30, 2019. All interest rates are payable in cash.
(2)Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board's valuation process described elsewhere herein.
(3)The Company also holds a portion of the first lien senior secured loan in this portfolio company.
(4)The entire commitment was unfunded as of September 30, 2019. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.





















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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

As of September 30, 2019, the Company had committed to fund $109,375 of LLC equity interest subscriptions to GCIC SLF. As of September 30, 2019, $48,356 of the Company's LLC equity interest subscriptions to GCIC SLF had been called and contributed, net of return of capital distributions subject to recall. Immediately prior to the Purchase Agreement, $48,356 of the Company's LLC equity interest subscriptions to GCIC SLF had been called and contributed, net of return of capital distributions subject to recall. Prior to the Purchase Agreement, for the three months ended December 31, 2019, the Company earned $1,905 of dividend income from the LLC equity interest in GCIC SLF.

See below for certain summarized financial information for GCIC SLF as of September 30, 2019 and for the three months ended December 31, 2019:
  As of September 30, 2019
Selected Balance Sheet Information:  
Investments, at fair value$111,568  
Cash and other assets4,627  
Total assets$116,195  
Senior credit facility$59,559  
Other liabilities341  
Total liabilities59,900  
Members’ equity56,295  
Total liabilities and members' equity$116,195  
Three months ended December 31, 2019
Selected Statement of Operations Information:  
Interest income$2,081  
Total investment income2,081  
Interest and other debt financing expenses512  
Administrative service fee45  
Other expenses(24) 
Total expenses533  
Net investment income1,548  
Net change in unrealized appreciation (depreciation) on investments
(108) 
Net increase in members' equity$1,440  


Note 5. Forward Currency Contracts

The Company enters into forward currency contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on the value of the Company's investments denominated in foreign currencies.

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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

The outstanding forward currency contracts as of June 30, 2020 and September 30, 2019 were as follows:
As of June 30, 2020
CounterpartyCurrency to be soldCurrency to be purchasedSettlement dateUnrealized appreciation ($)Unrealized depreciation ($)
Macquarie Bank Limited£8,925  GBP$11,219  USD3/2/2023$113  $—  
Macquarie Bank Limited£3,780  GBP$4,804  USD3/27/2023100  —  
Macquarie Bank Limited€6,760  EUR$8,044  USD4/28/2023248  —  
Macquarie Bank Limited€9,300  EUR$10,861  USD4/29/2022259  —  
$720  $—  

As of September 30, 2019
CounterpartyCurrency to be soldCurrency to be purchasedSettlement dateUnrealized appreciation ($)Unrealized depreciation ($)
Macquarie Bank Limited£8,925  GBP$11,219  USD3/2/2023$—  $(114) 
Macquarie Bank Limited£3,780  GBP$4,804  USD3/27/2023—  (1) 
$—  $(115) 

In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company has entered into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) with its derivative counterparty, Macquarie Bank Limited (“Macquarie”). The ISDA Master Agreement is a bilateral agreement between the Company and Macquarie that governs over the counter (“OTC”) derivatives, including forward currency contracts, and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Company and cash collateral received from Macquarie, if any, is included in the Consolidated Statements of Financial Condition as cash collateral held at broker for forward currency contracts or cash collateral received from broker for forward currency contracts. The Company minimizes counterparty credit risk by only entering into agreements with counterparties that it believes to be of good standing and by monitoring the financial stability of those counterparties.

The following table is intended to provide additional information about the effect of the forward currency contracts on the financial statements of the Company including: the fair value of derivatives by risk category, the location of those fair values on the Consolidated Statement of Financial Condition, and the Company’s gross and net amount of assets and liabilities available for offset under netting arrangements as well as any related collateral received or pledged by the Company as of June 30, 2020 and September 30, 2019.
As of June 30, 2020
CounterpartyRisk exposure categoryUnrealized appreciation on forward currency contracts Unrealized depreciation on forward currency contracts Net amounts presented in the Consolidated Statement of Financial Condition
Collateral (Received) Pledged (1)
Net Amount (2)
Macquarie Bank LimitedForeign exchange$720  $—  $720  $—  $720  
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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)


As of September 30, 2019
CounterpartyRisk exposure categoryUnrealized appreciation on forward currency contracts Unrealized depreciation on forward currency contracts Net amounts presented in the Consolidated Statement of Financial Condition
Collateral (Received) Pledged (1)
Net Amount (2)
Macquarie Bank LimitedForeign exchange$—  $(115) $(115) $115  $—  

(1) In some instances, the actual collateral pledged may be more than the amount shown due to over collateralization.
(2)Represents the net amount due from/(to) counterparties in the event of default.
The impact of derivative transactions for the three and nine months ended June 30, 2020 on the Consolidated Statement of Operations, including realized and unrealized gains (losses) is summarized in the table below:
Realized gain (loss) on forward currency contracts recognized in income
Risk exposure categoryFor the three months ended June 30, 2020For the nine months ended June 30, 2020
Foreign exchange $—  $—  
Change in unrealized appreciation (depreciation) on forward currency contracts recognized in income
Risk exposure categoryFor the three months ended June 30, 2020For the nine months ended June 30, 2020
Foreign exchange $(211) $835  

The following table is a summary of the average outstanding daily volume for forward currency contracts for the three and nine months ended June 30, 2020:
Average U.S. Dollar notional outstanding For the three months ended June 30, 2020For the nine months ended June 30, 2020
Forward currency contracts$34,928  $33,272  

Exclusion of the Investment Adviser from Commodity Pool Operator Definition

Engaging in commodity interest transactions such as swap transactions or futures contracts for the Company may cause the Investment Adviser to fall within the definition of “commodity pool operator” under the Commodity Exchange Act (the “CEA”) and related Commodity Futures Trading Commission (the “CFTC”) regulations. On February 6, 2020, the Investment Adviser claimed an exclusion from the definition of the term “commodity pool operator” under the CEA and the CFTC regulations in connection with its management of the Company and, therefore, is not subject to CFTC registration or regulation under the CEA as a commodity pool operator with respect to its management of the Company.


Note 6. Fair Value Measurements

The Company follows ASC Topic 820 for measuring fair value. Fair value is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the assets or liabilities or market and the assets’ or liabilities’ complexity. The Company’s fair value analysis includes an analysis of the value of any unfunded loan commitments. Assets and liabilities are categorized for disclosure purposes based upon the level of judgment associated with the inputs used to measure their value. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation of the asset or liability as of the measurement date. The three levels are defined as follows:

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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Level 1:  Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2:  Inputs include quoted prices for similar assets or liabilities in active markets and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the assets or liabilities.

Level 3: Inputs include significant unobservable inputs for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value are based upon the best information available and require significant management judgment or estimation.

In certain cases, the inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, an asset’s or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfers. There were no transfers among Level 1, 2 and 3 of the fair value hierarchy for assets and liabilities during the three and nine months ended June 30, 2020 and 2019. The following section describes the valuation techniques used by the Company to measure different assets and liabilities at fair value and includes the level within the fair value hierarchy in which the assets and liabilities are categorized.

Investments

Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of the Board to assist in the valuation of each portfolio investment without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process. This valuation process is conducted at the end of each fiscal quarter, with approximately 25% (based on the number of portfolio companies) of the Company’s valuations of debt and equity investments without readily available market quotations subject to review by an independent valuation firm. All investments as of June 30, 2020 and September 30, 2019, with the exception of money market funds included in cash, cash equivalents and restricted cash and cash equivalents (Level 1 investments), forward currency contracts (Level 2 investments) and investments measured at fair value using the NAV, were valued using Level 3 inputs.

When determining fair value of Level 3 debt and equity investments, the Company takes into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, and changes in the interest rate environment and the credit markets generally that affect the price at which similar investments are made and other relevant factors. The primary method for determining enterprise value uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s net income before net interest expense, income tax expense, depreciation and amortization (“EBITDA”). A portfolio company’s EBITDA can include pro forma adjustments for items such as acquisitions, divestitures, or expense reductions. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired, the Company will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, the Company uses a market interest rate yield analysis to determine fair value.

In addition, for certain debt investments, the Company bases its valuation on indicative bid and ask prices provided by an independent third party pricing service. Bid prices reflect the highest price that the Company and others may be willing to pay. Ask prices represent the lowest price that the Company and others may be willing to accept. The Company generally uses the midpoint of the bid/ask range as its best estimate of fair value of such investment.
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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)


Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that are ultimately received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company could realize significantly less than the value at which such investment had previously been recorded. The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.

The following tables present fair value measurements of the Company’s investments and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of June 30, 2020 and September 30, 2019:
As of June 30, 2020Fair Value Measurements Using
DescriptionLevel 1Level 2Level 3Total
Assets, at fair value:        
Debt investments(1)
$—  $—  $4,173,578  $4,173,578  
Equity investments(1)
—  —  76,792  76,792  
Money market funds(1)(2)
19,809  —  —  19,809  
Forward currency contracts—  720  —  720  
Total assets, at fair value:$19,809  $720  $4,250,370  $4,270,899  

As of September 30, 2019Fair Value Measurements Using
DescriptionLevel 1Level 2Level 3Total
Assets, at fair value:        
Debt investments(1)
$—  $—  $4,083,298  $4,083,298  
Equity investments(1)
—  —  85,990  85,990  
Money market funds(1)(2)
9,963  —  —  9,963  
Investment measured at NAV(3)(4)
—  —  —  123,644  
Total assets, at fair value:$9,963  $—  $4,169,288  $4,302,895  
Liabilities at fair value:
Forward currency contracts $—  $(115) $—  $(115) 
Total liabilities, at fair value:$—  $(115) $—  $(115) 

(1)Refer to the Consolidated Schedules of Investments for further details.
(2)Included in cash and cash equivalents, restricted cash and cash equivalents, foreign currencies and restricted foreign currencies on the Consolidated Statements of Financial Condition.
(3)Certain investments that are measured at fair value using the NAV have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Financial Condition.
(4)Represents the Company's investments in LLC equity interests in the SLFs. The fair value of these investments have been determined using the NAV of the Company’s ownership interest in members’ capital.

The net change in unrealized appreciation (depreciation) for the three and nine months ended June 30, 2020, reported within the net change in unrealized appreciation (depreciation) on investments in the Company's Consolidated Statements of Operations attributable to the Company's Level 3 assets held as of June 30, 2020 was $98,574 and $(152,478), respectively. The net change in unrealized appreciation (depreciation) for the three and nine months ended June 30, 2019, reported within the net change in unrealized appreciation (depreciation) on investments in the Company's Consolidated Statements of Operations attributable to the Company's Level 3 assets held as of June 30, 2019 was $1,732 and $2,667, respectively.
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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)


The following tables present the changes in investments measured at fair value using Level 3 inputs for the nine months ended June 30, 2020 and 2019:

For the nine months ended June 30, 2020
  Debt
Investments		Equity
Investments		Total
Investments
Fair value, beginning of period$4,083,298  $85,990  $4,169,288  
Net change in unrealized appreciation (depreciation) on investments(117,261) (12,097) (129,358) 
Realized gain (loss) on investments(12,010) 1,938  (10,072) 
Funding of (proceeds from) revolving loans, net20,385  —  20,385  
Fundings of investments524,786  5,411  530,197  
PIK interest7,513  —  7,513  
Proceeds from principal payments and sales of portfolio investments(521,395) (7,828) (529,223) 
Accretion of discounts and amortization of premiums(19,429) —  (19,429) 
Transfers in (1)
207,691  3,378  211,069  
Fair value, end of period$4,173,578  $76,792  $4,250,370  

For the nine months ended June 30, 2019
  Debt
Investments		Equity
Investments		Total
Investments
Fair value, beginning of period$1,671,051  $40,706  $1,711,757  
Net change in unrealized appreciation (depreciation) on investments(6,004) 5,612  (392) 
Realized gain (loss) on investments(2,473) (2,044) (4,517) 
Funding of (proceeds from) revolving loans, net2,264  —  2,264  
Fundings of investments448,538  6,214  454,752  
PIK interest1,811  —  1,811  
Proceeds from principal payments and sales of portfolio investments(316,127) (5,093) (321,220) 
Accretion of discounts and amortization of premiums6,624  —  6,624  
Fair value, end of period$1,805,684  $45,395  $1,851,079  


(1) Transfers in represent debt and equity investments acquired in the Purchase Agreement.
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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of June 30, 2020 and September 30, 2019.

Quantitative information about Level 3 Fair Value Measurements
Fair value as of June 30, 2020Valuation TechniquesUnobservable Input
Range (Weighted Average) (1)
Assets:        
Senior secured loans(2)
$584,993  Market rate approachMarket interest rate4.2% - 19.3% (7.0%)
    Market comparable companiesEBITDA multiples5.0x - 19.0x (11.7x)
6,261  Market comparableBroker/dealer bids or quotesN/A
One stop loans(3)(4)
$3,479,600  Market rate approachMarket interest rate1.5% - 36.5% (8.1%)
  Market comparable companiesEBITDA multiples4.5x - 27.0x (13.4x)
      Revenue multiples1.5x - 10.0x (5.9x)
Subordinated debt and second lien loans(5)
$20,978  Market rate approachMarket interest rate7.5% - 19.5% (10.7%)
    Market comparable companiesEBITDA multiples9.0x - 16.0x (12.8x)
      Revenue multiples4.5x - 7.5x (7.3x)
Equity(6)
$76,792  Market comparable companiesEBITDA multiples4.5x - 24.0x (13.3x)
      Revenue multiples1.5x - 7.5x (4.3x)

(1)Unobservable inputs were weighted by the relative fair value of the instruments.
(2)Excludes $13,198 of non-accrual loans at fair value, which the Company valued using the market comparable companies approach.
(3)Excludes $68,548 of non-accrual loans at fair value, which the Company valued using the market comparable companies approach.
(4)The Company valued $3,048,896 and $430,704 of one stop loans using EBITDA and revenue multiples, respectively. All one stop loans were also valued using the market rate approach.
(5)The Company valued $20,805 and $173 of subordinated debt and second lien loans using EBITDA and revenue multiples, respectively. All subordinated debt and second lien loans were also valued using the market rate approach.
(6)The Company valued $66,371 and $10,421 of equity investments using EBITDA and revenue multiples, respectively.

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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Quantitative information about Level 3 Fair Value Measurements
Fair value as of September 30, 2019Valuation TechniquesUnobservable Input
Range
(Weighted Average)(1)
Assets:        
Senior secured loans(2)
$573,582  Market rate approachMarket interest rate4.3% - 11.3% (6.7%)
    Market comparable companiesEBITDA multiples7.0x - 24.0x (12.9x)
9,901  Market comparableBroker/dealer bids or quotesN/A
One stop loans(3)(4)
$3,466,310  Market rate approachMarket interest rate5.3% - 30.8% (8.2%)
  Market comparable companiesEBITDA multiples5.0x - 28.5x (14.3x)
      Revenue multiples2.0x - 11.0x (5.9x)
Subordinated debt and second lien loans(5)
$19,842  Market rate approachMarket interest rate7.5% - 19.5% (11.1%)
    Market comparable companiesEBITDA multiples8.5x - 17.5x (13.3x)
Revenue multiples3.0x - 3.0x (3.0x)
Equity(6)(7)
$85,990  Market comparable companiesEBITDA multiples5.0x - 28.5x (14.1x)
      Revenue multiples2.0x - 6.5x (4.0x)

(1)Unobservable inputs were weighted by the relative fair value of the instruments.
(2)Excludes $5,857 of non-accrual loans at fair value, which the Company valued using the market comparable companies approach.
(3)Excludes $7,806 of non-accrual loans at fair value, which the Company valued using the market comparable companies approach.
(4)The Company valued $3,051,629 and $414,681 of one stop loans using EBITDA and revenue multiples, respectively. All one stop loans were also valued using the market rate approach.
(5)The Company valued $19,834 and $8 of subordinated debt and second lien loans using EBITDA and revenue multiples, respectively. All subordinated debt and second lien loans were also valued using the market rate approach.
(6)Excludes $123,644 of LLC equity interests in SLF at fair value, which the Company valued using the NAV.
(7)The Company valued $74,958 and $11,032 of equity investments using EBITDA and revenue multiples, respectively.
The above tables are not intended to be all-inclusive but rather to provide information on significant unobservable inputs and valuation techniques used by the Company.

The significant unobservable inputs used in the fair value measurement of the Company’s debt and equity investments are EBITDA multiples, revenue multiples and market interest rates. The Company uses EBITDA multiples and, to a lesser extent, revenue multiples on its debt and equity investments to determine any credit gains or losses. Increases or decreases in either of these inputs in isolation would have resulted in a significantly lower or higher fair value measurement. The Company uses market interest rates for loans to determine if the effective yield on a loan is commensurate with the market yields for that type of loan. If a loan’s effective yield was significantly less than the market yield for a similar loan with a similar credit profile, then the resulting fair value of the loan may have been lower.

Other Financial Assets and Liabilities

ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. As a result, with the exception of the line item titled “debt” which is reported at cost, all assets and liabilities approximate fair value on the Consolidated Statements of Financial Condition due to their short maturity. Fair value of the Company’s debt is estimated using Level 3 inputs by discounting remaining payments using comparable market rates or market quotes for similar instruments at the measurement date, if available.

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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

The following are the carrying values and fair values of the Company’s debt as of June 30, 2020 and September 30, 2019.
As of June 30, 2020As of September 30, 2019
  Carrying ValueFair ValueCarrying ValueFair Value
Debt$2,008,572  $1,984,892  $2,124,392  $2,125,683  

Note 7. Borrowings

In accordance with the 1940 Act, with certain limited exceptions, prior to February 6, 2019, the Company was allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, was at least 200% after such borrowing. On February 5, 2019, the Company’s stockholders voted to approve the asset coverage requirement decrease to 150% from 200% in accordance with Section 61(a)(2) of the 1940 Act. Effective February 6, 2019, the reduced asset coverage requirement permits the Company to have a ratio of total consolidated assets to outstanding indebtedness of 2:1 as compared to a maximum of 1:1 under the 200% asset coverage requirement.  The Company currently intends to target a GAAP debt-to-equity ratio between 0.85 to 1.15x. On September 13, 2011, the Company received exemptive relief from the SEC allowing it to modify the asset coverage requirement to exclude the SBA debentures from its asset coverage calculation. As such, the Company’s ratio of total consolidated assets to outstanding indebtedness could be less than the applicable asset coverage requirement under the 1940 Act. This provides the Company with increased investment flexibility but also increases its risks related to leverage. As of June 30, 2020, the Company’s asset coverage for borrowed amounts was 235.8% (excluding the SBA debentures).

Debt Securitizations:

On June 5, 2014, the Company completed a $402,569 term debt securitization (“2014 Debt Securitization”). The notes (“2014 Notes”) offered in the 2014 Debt Securitization were issued by the 2014 Issuer and are secured by a diversified portfolio of senior secured and second lien loans held by the 2014 Issuer. The 2014 Debt Securitization initially consisted of $191,000 of Aaa/AAA Class A-1 2014 Notes, $20,000 of Aaa/AAA Class A-2 2014 Notes and $35,000 of Aa2/AA Class B 2014 Notes. In partial consideration for the loans transferred to the 2014 Issuer as part of the 2014 Debt Securitization, the Company received and retained $37,500 of Class C 2014 Notes and $119,069 of LLC equity interests in the 2014 Issuer. On March 23, 2018, the Company and the 2014 Issuer amended the 2014 Debt Securitization to, among other things, (a) refinance the issued Class A-1 2014 Notes by redeeming in full the $191,000 of Class A-1 2014 Notes and issuing new Class A-1-R 2014 Notes in an aggregate principal amount of $191,000 that bear interest at a rate of three-month LIBOR plus 0.95%, which is a decrease from the rate of three-month LIBOR plus 1.75% of the previously outstanding Class A-1 2014 Notes, (b) refinance the Class A-2 2014 Notes by redeeming in full the $20,000 of Class A-2 2014 Notes and issuing new Class A-2-R 2014 Notes in an aggregate principal amount of $20,000 that bear interest at a rate of three-month LIBOR plus 0.95%, which is a decrease from the rate of three-month LIBOR plus 1.95% of the previously outstanding Class A-2 2014 Notes, (c) refinance the Class B 2014 Notes by redeeming in full the $35,000 of Class B 2014 Notes and issuing new Class B-R 2014 Notes in an aggregate principal amount of $35,000 that bear interest at a rate of three-month LIBOR plus 1.40%, which is a decrease from the rate of three-month LIBOR plus 2.50% of the previously outstanding Class B 2014 Notes, (d) refinance the Class C 2014 Notes by redeeming in full the $37,500 of Class C 2014 Notes and issuing new Class C-R 2014 Notes in an aggregate principal amount of $37,500 that bear interest at a rate of three-month LIBOR plus 1.55%, which is a decrease from the rate of three-month LIBOR plus 3.50% of the previously outstanding Class C 2014 Notes. The Class C-R 2014 Notes were retained by the Company, and the Company remains the sole owner of the equity of the 2014 Issuer. The Class A-1-R, Class A-2-R and Class B-R 2014 Notes are included in the June 30, 2020 and September 30, 2019 Consolidated Statements of Financial Condition as debt of the Company and the Class C-R 2014 Notes and LLC equity interests were eliminated in consolidation.

Through April 28, 2018, all principal collections received on the underlying collateral could have been used by the 2014 Issuer to purchase new collateral under the direction of the Investment Adviser in its capacity as collateral manager of the 2014 Issuer and in accordance with the Company’s investment strategy, allowing the Company to maintain the initial leverage in the 2014 Debt Securitization. For the three and nine months ended June 30, 2020, the Company had repayments on the 2014 Notes of $21,920 and $45,807, respectively. For the three and nine months ended June 30, 2019, the Company had repayments on the 2014 Notes of $24,720 and $42,760, respectively. The 2014 Notes are scheduled to mature on April 25, 2026.
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)


As of June 30, 2020 and September 30, 2019, there were 58 and 68 portfolio companies with a total fair value of $220,719 and $275,727, respectively, securing the 2014 Notes. The pool of loans in the 2014 Debt Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.

The interest charged under the 2014 Debt Securitization is based on three-month LIBOR. The three-month LIBOR in effect as of June 30, 2020 based on the last interest rate reset was 1.0%. For the three and nine months ended June 30, 2020 and 2019, the components of interest expense, cash paid for interest, average interest rates and average outstanding balances for the 2014 Debt Securitization were as follows:
For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Stated interest expense$525  $1,501  $2,288  $4,899  
Amortization of debt issuance costs—  —  —  110  
Total interest and other debt financing expenses$525  $1,501  $2,288  $5,009  
Cash paid for interest expense$750  $1,709  $2,777  $5,109  
Annualized average stated interest rate2.4 %3.7 %2.9 %3.7 %
Average outstanding balance$86,790  $161,242  $105,288  $178,184  

As of June 30, 2020, the classes, amounts, ratings and interest rates (expressed as a spread to three-month LIBOR) of the Class A-1-R, A-2-R and B-R 2014 Notes are as follows:
DescriptionClass A-1-R 2014 NotesClass A-2-R 2014 NotesClass B-R 2014 Notes
TypeSenior Secured Floating RateSenior Secured Floating RateSenior Secured Floating Rate
Amount Outstanding$41,212$4,315$35,000
Moody’s Rating"Aaa""Aaa""Aaa"
S&P Rating"AAA""AAA""AA+"
Interest RateLIBOR + 0.95%LIBOR + 0.95%LIBOR + 1.40%

On November 16, 2018, the Company completed a $602.4 million term debt securitization (the “2018 Debt Securitization”). The notes offered in the 2018 Debt Securitization (the “2018 Notes”) were issued by the 2018 Issuer, a subsidiary of 2018 CLO Depositor, and are backed by a diversified portfolio of senior secured and second lien loans. The transaction was executed through a private placement of approximately $327.0 million of AAA/AAA Class A 2018 Notes, which bear interest at the three-month LIBOR plus 1.48%; $61.2 million of AA Class B 2018 Notes, which bear interest at the three-month LIBOR plus 2.10%; $20.0 million of A Class C-1 2018 Notes, which bear interest at the three-month LIBOR plus 2.80%; $38.8 million of A Class C-2 2018 Notes, which bear interest at the three-month LIBOR plus 2.65%; $42.0 million of BBB- Class D 2018 Notes, which bear interest at the three-month LIBOR plus 2.95%; and $113.4 million of Subordinated 2018 Notes which do not bear interest. The Company indirectly retained all of the Class C-2, Class D and Subordinated 2018 Notes. Through January 20, 2023, the 2018 Issuer is permitted to use all principal collections received on the underlying collateral to purchase new collateral under the direction of the Investment Adviser, in its capacity as collateral manager of the 2018 Issuer and in accordance with the Company’s investment strategy, allowing the Company to maintain the initial leverage in the 2018 Debt Securitization. The 2018 Notes are scheduled to mature on January 20, 2031. The Class A, Class B and Class C-1 2018 Notes are included in the June 30, 2020 and September 30, 2019 Consolidated Statements of Financial Condition as debt of the Company. As of June 30, 2020 and September 30, 2019, the Class C-2, Class D and Subordinated 2018 Notes were eliminated in consolidation.

As of June 30, 2020 and September 30, 2019, there were 93 and 101 portfolio companies, respectively, with a total fair value of $571,621 and $592,462, respectively, securing the 2018 Notes. The pool of loans in the 2018 Debt
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.

The interest charged under the 2018 Debt Securitization is based on three-month LIBOR. The three-month LIBOR in effect as of June 30, 2020 based on the last interest rate reset was 1.1%. For the three and nine months ended June 30, 2020 and 2019, the components of interest expense, cash paid for interest, average interest rates and average outstanding balances for the 2018 Debt Securitization were as follows:
For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Stated interest expense$3,008  $4,408  $10,438  $10,986  
Amortization of debt issuance costs104  105  315  262  
Total interest and other debt financing expenses$3,112  $4,513  $10,753  $11,248  
Cash paid for interest expense$3,528  $7,629  $11,327  $7,629  
Annualized average stated interest rate3.0 %4.3 %3.4 %4.3 %
Average outstanding balance$408,200  $408,200  $408,200  $339,419  

As of June 30, 2020, the classes, amounts, ratings and interest rates (expressed as a spread to three-month LIBOR) of the Class A, B and C-1 2018 Notes are as follows:
DescriptionClass A 2018 NotesClass B 2018 NotesClass C-1 2018 Notes
TypeSenior Secured Floating RateSenior Secured Floating RateSenior Secured Floating Rate
Amount Outstanding$327,000$61,200$20,000
Fitch Rating"AAA""NR""NR"
S&P Rating"AAA""AA""A"
Interest RateLIBOR + 1.48%LIBOR + 2.10%LIBOR + 2.80%

Effective September 16, 2019, the Company assumed, as a result of the Merger, a $908,195 term debt securitization (the “GCIC 2018 Debt Securitization”). The GCIC 2018 Debt Securitization was originally completed on December 13, 2018. The notes offered in the GCIC 2018 Debt Securitization (the “GCIC 2018 Notes”) were issued by the GCIC 2018 Issuer, a subsidiary of GCIC 2018 CLO Depositor, and are secured by a diversified portfolio of senior secured and second lien loans. The GCIC 2018 Debt Securitization consists of $490,000 of AAA/AAA Class A-1 GCIC 2018 Notes, $38,500 of AAA Class A-2 GCIC 2018 Notes, and $18,000 of AA Class B-1 GCIC 2018 Notes. In partial consideration for the loans transferred to the GCIC 2018 Issuer as part of the GCIC 2018 Debt Securitization, the GCIC 2018 CLO Depositor received and retained $27,000 of Class B-2 GCIC 2018 Notes, $95,000 of Class C GCIC 2018 Notes and $60,000 of Class D GCIC 2018 Notes and $179,695 of Subordinated GCIC 2018 Notes. The Class A-1, Class A-2 and Class B-1 GCIC 2018 Notes are included in the June 30, 2020 and September 30, 2019 Consolidated Statement of Financial Condition as debt of the Company. As of June 30, 2020 and September 30, 2019, the Class B-2, Class C and Class D GCIC 2018 Notes and the Subordinated GCIC 2018 Notes were eliminated in consolidation.

Through January 20, 2023, the GCIC 2018 Issuer is permitted to use all principal collections received on the underlying collateral to purchase new collateral under the direction of the Investment Adviser in its capacity as collateral manager of the GCIC 2018 Issuer and in accordance with the Company’s investment strategy, allowing the Company to maintain the initial leverage in the GCIC 2018 Debt Securitization. The GCIC 2018 Notes are scheduled to mature on January 20, 2031, and the Subordinated GCIC 2018 Notes are scheduled to mature on December 13, 2118.

Two loan sale agreements govern the GCIC 2018 Debt Securitization. One of the loan sale agreements provided for the sale of assets upon the closing of the GCIC 2018 Debt Securitization to satisfy risk retention requirements. Under the terms of the other loan sale agreement governing the GCIC 2018 Debt Securitization, the Company
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

agreed to directly or indirectly through the GCIC 2018 CLO Depositor sell or contribute certain senior secured and second lien loans (or participation interests therein) to the GCIC 2018 Issuer.

As of June 30, 2020 and September 30, 2019, there were 113 and 115 portfolio companies, respectively, with a total fair value of $867,814 and $893,003, respectively securing the GCIC 2018 Notes. The pool of loans in the GCIC 2018 Debt Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.

The interest charged under the GCIC 2018 Debt Securitization is based on three-month LIBOR. The three-month LIBOR in effect as of June 30, 2020 based on the last interest rate reset was 1.1%. For the three and nine months ended June 30, 2020 and 2019, the components of interest expense, cash paid for interest, annualized average interest rates and average outstanding balances for the GCIC 2018 Debt Securitization were as follows:

For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Stated interest expense$4,031  $—  $13,854  $—  
Accretion of discounts on notes issued446  —  903  —  
Total interest and other debt financing expenses$4,477  $—  $14,757  $—  
Cash paid for interest expense4,674  $—  14,941  —  
Annualized average stated interest rate3.0 %N/A3.4 %N/A
Average outstanding balance$546,500  $—  $546,500  $—  

As of June 30, 2020, the classes, amounts, ratings and interest rates (expressed as a spread to three-month LIBOR, as applicable) of the Class A-1 GCIC 2018 Notes, Class A-2 GCIC 2018 Notes, and Class B-1 GCIC 2018 Notes were as follows:
DescriptionClass A-1 GCIC 2018 NotesClass A-2 GCIC 2018 NotesClass B-1 GCIC 2018 Notes
TypeSenior Secured Floating RateSenior Secured Fixed RateSenior Secured Floating Rate
Amount Outstanding$490,000$38,500$18,000
Fitch’s Rating"AAA""NR""NR"
S&P Rating"AAA""AAA""AA"
Interest RateLIBOR + 1.48%4.67%LIBOR + 2.25%

The Investment Adviser serves as collateral manager to the 2014 Issuer, 2018 Issuer and GCIC 2018 Issuer under separate collateral management agreements and receives a fee for providing these services. The total fees payable by the Company under the Investment Advisory Agreement and Prior Investment Advisory Agreement, as applicable, are reduced by an amount equal to the total aggregate fees paid to the Investment Adviser by the 2014 Issuer, the 2018 Issuer and the GCIC 2018 Issuer for rendering such collateral management services.

As part of each of the 2014 Debt Securitization, the 2018 Debt Securitization and the GCIC 2018 Debt Securitization, GBDC entered into, or assumed in the Merger, master loan sale agreements under which GBDC agreed to directly or indirectly sell or contribute certain senior secured and second lien loans (or participation interests therein) to the 2014 Issuer, the 2018 Issuer and the GCIC 2018 Issuer, as applicable, and to purchase or otherwise acquire the LLC equity interests in the 2014 Issuer, the Subordinated 2018 Notes and the GCIC Subordinated 2018 Notes, as applicable. As of June 30, 2020, the 2014 Notes, the 2018 Notes and GCIC 2018 Notes (other than the Subordinated 2018 Notes and the GCIC Subordinated 2018 Notes) were the secured obligations of the 2014 Issuer, 2018 Issuer, and GCIC 2018 Issuer, respectively, and indentures governing each of the 2014 Notes, the 2018 Notes, and GCIC 2018 Notes include customary covenants and events of default.

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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

SBA Debentures: On August 24, 2010, SBIC IV received approval for a license from the SBA to operate as an SBIC. On December 5, 2012, SBIC V received a license from the SBA to operate as an SBIC. On January 10, 2017, SBIC VI received a license from the SBA to operate as an SBIC. SBICs are subject to a variety of regulations and oversight by the SBA concerning the size and nature of the companies in which they invest as well as the structures of those investments.

The licenses allow the SBICs to obtain leverage by issuing SBA-guaranteed debentures, subject to issuance of a capital commitment by the SBA and customary procedures. These debentures are non-recourse to GBDC, have interest payable semiannually and a ten-year maturity. The interest rate is fixed at the time of issuance at a market-driven spread over U.S. Treasury Notes with ten-year maturities.

Under present SBIC regulations, the maximum amount of SBA-guaranteed debentures issued by multiple licensees under common management is $350,000 and the maximum amount issued by a single SBIC licensee is $175,000. As of June 30, 2020, SBIC IV, SBIC V and SBIC VI had $69,700, $151,750 and $66,000, respectively, of outstanding SBA-guaranteed debentures that mature between September 2021 and March 2030. As of September 30, 2019, SBIC IV, SBIC V and SBIC VI had $90,000, $165,000 and $32,000, respectively, of outstanding SBA-guaranteed debentures that mature between March 2022 and March 2030. The original amount of debentures committed to SBIC IV and SBIC V by the SBA were $150,000 and $175,000, respectively. Through June 30, 2020, SBIC IV and SBIC V have repaid $80,300 and $23,250 of outstanding debentures, respectively, and these commitments have effectively been terminated. As of June 30, 2020 and September 30, 2019, SBIC VI had $29,000 and $18,000, respectively, of undrawn debenture commitments, of which $29,000 and $18,000, respectively, were available to be drawn, subject to SBA regulatory requirements.

The interest rate on the outstanding debentures as of June 30, 2020 is fixed at an average annualized interest rate of 3.1%. For the three and nine months ended June 30, 2020 and 2019, the components of interest expense, cash paid for interest, annualized average interest rates and average outstanding balances for the SBA debentures were as follows:
For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Stated interest expense$2,208  $2,424  $7,026  $7,171  
Amortization of debt issuance costs314  216  904  648  
Total interest and other debt financing expenses$2,522  $2,640  $7,930  $7,819  
Cash paid for interest expense$—  $—  $4,826  $4,711  
Annualized average stated interest rate3.1 %3.4 %3.2 %3.4 %
Average outstanding balance$287,450  $287,549  $297,157  $283,703  

Revolving Credit Facilities: On July 21, 2011, Funding entered into a senior secured revolving credit facility (as amended, the “Credit Facility”) with Wells Fargo Bank, N.A., as administrative agent and lender. On February 4, 2019, the Credit Facility was repaid in full and subsequently terminated. Prior to termination, the Credit Facility allowed Funding to borrow up to $170,000 at any one time outstanding, subject to leverage and borrowing base restrictions. The Credit Facility bore interest at one-month LIBOR plus 2.15%. In addition to the stated interest rate on the Credit Facility, the Company was required to pay a non-usage fee at a rate between 0.50% and 1.75% per annum depending on the size of the unused portion of the Credit Facility.

As of June 30, 2020 and September 30, 2019, the Company had no outstanding debt under the Credit Facility. For the three and nine months ended June 30, 2019, the Company had borrowings on the Credit Facility of $0 and $274,522, respectively, and repayments on the Credit Facility of $0 and $410,547, respectively.
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

For the three and nine months ended June 30, 2020 and 2019, the components of interest expense, cash paid for interest and facility fees, annualized average interest rates and average outstanding balances for the Credit Facility were as follows:
For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Stated interest expense$—  $—  $—  $1,455  
Facility fees—  —  —  189  
Amortization of debt issuance costs—  —  —  156  
Total interest and other debt financing expenses$—  $—  $—  $1,800  
Cash paid for interest expense and facility fees$—  $—  $—  $2,033  
Annualized average stated interest rateN/AN/AN/A4.5 %
Average outstanding balance$—  $—  $—  $42,788  

On July 20, 2018, the 2010 Issuer entered into a credit facility (as amended, the “MS Credit Facility”) with Morgan Stanley Bank, N.A., as lender, Morgan Stanley Senior Funding, Inc. (“Morgan Stanley”), as administrative agent, and U.S. Bank National Association, as collateral agent for the administrative agent and the lenders. On November 1, 2018, the 2010 Issuer amended the MS Credit Facility to, among other things, increase the size of the MS Credit Facility from $300,000 to $450,000. The other material terms of the MS Credit Facility were unchanged. On November 16, 2018, a portion of the proceeds from the private placement of the 2018 Notes, net of expenses, was used to repay all amounts outstanding under the MS Credit Facility, following which the agreements governing the MS Credit Facility were terminated. The MS Credit Facility bore interest at a rate equal to one-month LIBOR plus 1.90% and was scheduled to mature on March 20, 2019.

The MS Credit Facility was secured by all of the assets held by the 2010 Issuer. Pursuant to a collateral management agreement, the Investment Adviser had agreed to perform certain duties with respect to the purchase and management of the assets securing the MS Credit Facility. The Investment Adviser was not paid a fee for such services under the collateral management agreement, but was reimbursed for expenses incurred in the performance of such obligations other than any ordinary overhead expenses, which were not reimbursed.

As of June 30, 2020 and September 30, 2019, the Company had no outstanding debt under the MS Credit Facility. For the three and nine months ended June 30, 2019, the Company had borrowings on the MS Credit Facility of $0 and $147,100, respectively, and repayments on the MS Credit Facility of $0 and $381,800, respectively.

For the three and nine months ended June 30, 2020 and 2019, the components of interest expense, cash paid for interest and facility fees, average interest rates and average outstanding balances for the MS Credit Facility were as follows:

For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Stated interest expense$—  $—  $—  $1,453  
Amortization of debt issuance costs—  —  —  190  
Total interest and other debt financing expenses$—  $—  $—  $1,643  
Cash paid for interest expense and facility fees$—  $—  $—  $3,174  
Annualized average stated interest rateN/AN/AN/A4.2 %
Average outstanding balance$—  $—  $—  $45,717  
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)


On February 1, 2019, Funding II entered into a credit facility as amended, (the “MS Credit Facility II”) with Morgan Stanley, as the administrative agent, each of the lenders from time to time party thereto, each of the securitization subsidiaries from time to time party thereto, and Wells Fargo Bank, N.A., as collateral agent, account bank and collateral custodian. On September 6, 2019, the Company entered into an amendment to the MS Credit Facility II to increase borrowing capacity to $300,000. On October 11, 2019, the Company entered into an amendment to increase the borrowing capacity under the MS Credit Facility II from $300,000 to $500,000 until the earlier of (i) the closing date of a debt securitization transaction mutually agreed to by the Company and Morgan Stanley or (ii) March 31, 2020 after which the borrowing capacity under the MS Credit Facility II will revert to $200,000. On March 20, 2020, the Company entered into an amendment that changed the date under which the borrowing capacity reverts from $500,000 to $200,000 to June 30, 2020 from March 31, 2020. On June 18, 2020, the Company entered into an amendment that increased the borrowing capacity through the full term of the MS Credit Facility II from $200,000 to $400,000. As of June 30, 2020, the MS Credit Facility II allows Funding II to borrow up to $400,000 at any one time outstanding, subject to leverage and borrowing base restrictions.
The period from February 1, 2019 until February 1, 2021 is referred to as the revolving period and during such revolving period, Funding II may request drawdowns under the MS Credit Facility II. Prior to June 18, 2020, borrowings under the MS Credit Facility II bore interest at the applicable base rate plus 2.05%. Effective June 18, 2020, during the Revolving Period, the MS Credit Facility II bears interest at the applicable base rate plus 2.45%. Following expiration of the revolving period, the interest rate on borrowings under the MS Credit Facility II will reset to the applicable base rate plus 2.95% for the remaining term of the MS Credit Facility II. The revolving period will continue through February 1, 2021 unless there is an earlier termination or event of default. The base rate under the MS Credit Facility II is (i) the one-month LIBOR with respect to any advances denominated in U.S. dollars or U.K. pound sterling, (ii) the one-month EURIBOR with respect to any advances denominated in euros, and (iii) the one-month Canadian Dollar Offered Rate with respect to any advances denominated in Canadian dollars. The scheduled maturity date of the MS Credit Facility II is February 1, 2024.
The MS Credit Facility II is secured by all of the assets held by Funding II. Both the Company and Funding II have made customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. The borrowings under the MS Credit Facility II will be subject to the leverage restrictions contained in the 1940 Act.
As of June 30, 2020 and September 30, 2019, the Company had outstanding debt under the MS Credit Facility II of $325,831 and $259,946, respectively. For the three and nine months ended June 30, 2020, the Company had borrowings on the MS Credit Facility II of $7,000 and $210,543, respectively, and repayments on the MS Credit Facility II of $90,400 and $144,931, respectively. For the three and nine months ended June 30, 2019, the Company had borrowings on the MS Credit Facility II of $117,350 and $348,613, respectively, and repayments on the MS Credit Facility II of $109,428 and $164,078, respectively.

For the three and nine months ended June 30, 2020 and 2019, the components of interest expense, cash paid for interest and facility fees, average interest rates and average outstanding balances for the MS Credit Facility II were as follows:
For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Stated interest expense$2,258  $1,991  $8,992  $3,179  
Facility fees163  38  425  64  
Amortization of debt issuance costs1,121  140  1,624  231  
Total interest and other debt financing expenses$3,542  $2,169  $11,041  $3,474  
Cash paid for interest expense and facility fees$3,529  $1,421  $9,233  $1,421  
Annualized average stated interest rate2.5 %4.4 %3.3 %4.4 %
Average outstanding balance$360,198  $181,512  $367,662  $95,814  

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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Effective September 16, 2019, the Company assumed, as a result of the Merger, a senior secured revolving credit facility (as amended, the “WF Credit Facility”) with GCIC Funding as the borrower and with Wells Fargo Bank, N.A. as the swingline lender, collateral agent, account bank, collateral custodian and administrative agent which, as of June 30, 2020, allowed GCIC Funding to borrow up to $300,000 at any one time outstanding, subject to leverage and borrowing base restrictions.  The WF Credit Facility bears interest at one-month LIBOR plus 2.00%.  The reinvestment period of the WF Credit Facility expires on March 20, 2021 and the WF Credit Facility matures on March 21, 2024. The Company is required to pay a non-usage fee rate between 0.50% and 1.75% per annum depending on the size of the unused portion of the WF Credit Facility.

The WF Credit Facility is collateralized by all of the assets held by GCIC Funding, and GBDC has pledged its interests in GCIC Funding as collateral to Wells Fargo Bank, N.A., as the collateral agent, to secure the obligations of GBDC as the transferor and servicer under the WF Credit Facility. Both GBDC and GCIC Funding have made customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. Borrowing under the WF Credit Facility is subject to the asset coverage requirements contained in the 1940 Act.

The Company may transfer certain loans and debt securities it originated or acquired from time to time to GCIC Funding through a purchase and sale agreement and caused GCIC Funding to originate or acquire loans, consistent with the Company’s investment objectives.

As of June 30, 2020 and September 30, 2019, the Company had outstanding debt under the WF Credit Facility of $214,358 and $253,847, respectively. As a result of the Merger, the Company assumed $255,861 of debt under the WF Credit Facility. For the three and nine months ended June 30, 2020, the Company had borrowings on the WF Credit Facility of $40,300 and $307,281, respectively, and repayments on the WF Credit Facility of $105,150 and $346,850, respectively. For the three and nine months ended June 30, 2019, the Company had no borrowings and repayments on the WF Credit Facility.

For the three and nine months ended June 30, 2020 and 2019, the components of interest expense, cash paid for interest and facility fees, annualized average interest rates and average outstanding balances for the WF Credit Facility were as follows:
For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Stated interest expense$1,427  $—  5,749  $—  
Facility fees81  243  —  
Amortization of debt issuance costs—  —  —  —  
Total interest and other debt financing expenses$1,508  $—  $5,992  $—  
Cash paid for interest expense$1,672  $—  $6,258  $—  
Annualized average stated interest rate2.4 %N/A3.2 %N/A
Average outstanding balance$236,364  $—  $237,981  $—  

Effective September 16, 2019, the Company assumed as a result of the Merger a senior secured revolving credit facility (as amended, the “DB Credit Facility”) with GCIC Funding II as the borrower and with Deutsche Bank AG, New York branch, as facility agent, the other agents parties thereto, each of the entities from time to time party thereto as securitization subsidiaries and Wells Fargo Bank, National Association, as collateral agent and as collateral custodian, which as of June 30, 2020 allowed GCIC Funding II to borrow up to $250,000 at any one time outstanding, subject to leverage and borrowing base restrictions.

As of June 30, 2020, the DB Credit Facility bears interest at the applicable base rate plus 1.90% per annum. The base rate under the DB Credit Facility is (i) the three-month Canadian Dollar Offered Rate with respect to any advances denominated in Canadian dollars, (ii) the three-month EURIBOR Interbank Offered Rate with respect to
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

any advances denominated in Euros, (iii) the three-month Bank Bill Swap Rate with respect to any advances denominated in Australian dollars and (iv) the three-month LIBOR with respect to any other advances. A non-usage fee of 0.25% per annum is payable on the undrawn amount under the DB Credit Facility, and an additional fee based on unfunded commitments of the lenders may be payable if borrowings under the DB Credit Facility do not exceed a minimum utilization percentage threshold. In addition, a syndication/agent fee is payable to the facility agent each quarter and is calculated based on the aggregate commitments outstanding each day during the preceding collection period at a rate of 1/360 of 0.25% of the aggregate commitments on each day. The reinvestment period of the DB Credit Facility expires on December 31, 2021 and the DB Credit Facility matures on December 31, 2024.

The DB Credit Facility is secured by all of the assets held by GCIC Funding II. GCIC Funding II has made customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. The borrowings of the Company, including under the DB Credit Facility, are subject to the leverage restrictions contained in the 1940 Act.

The Company transfers certain loans and debt securities it has originated or acquired from time to time to GCIC Funding II through a purchase and sale agreement and causes GCIC Funding II to originate or acquire loans, consistent with the Company’s investment objectives.

As of June 30, 2020 and September 30, 2019, the Company had outstanding debt under the DB Credit Facility of $150,280 and $248,042, respectively. As a result of the Merger, the Company assumed $248,042 of debt under the DB Credit Facility. For the three and nine months ended June 30, 2020, the Company had borrowings on the DB Credit Facility of $0 and $68,200, respectively, and repayments on the DB Credit Facility of $96,950 and $166,250, respectively. For the three and nine months ended June 30, 2019, the Company had no borrowings and repayments on the DB Credit Facility.

For the three and nine months ended June 30, 2020 and 2019, the components of interest expense, cash paid for interest and facility fees, annualized average interest rates and average outstanding balances for the DB Credit Facility were as follows:

For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Stated interest expense$1,285  $—  $5,729  $—  
Facility fees190  363  —  
Total interest and other debt financing expenses$1,475  $—  $6,092  $—  
Cash paid for interest expense$1,873  $—  $6,791  $—  
Annualized average stated interest rate2.6 %N/A3.4 %N/A
Average outstanding balance$199,553  $—  $223,937  $—  

Effective January 1, 2020, the Company assumed, as a result of the Purchase Agreement, SLF Credit Facility. On June 29, 2020, the SLF Credit Facility was repaid in full and subsequently terminated. Prior to the facility's termination, the reinvestment period of the SLF Credit Facility expired on August 29, 2018 and the maximum commitment was equal to advances outstanding due to leverage and borrowing base restrictions. The stated maturity date of the SLF Credit Facility was August 30, 2022. The SLF Credit Facility bore interest at one-month LIBOR plus 2.05%, depending on the composition of the collateral asset portfolio. In addition, the SLF Credit Facility was collateralized by all of the assets held by SLF II, and SLF had committed to provide a minimum of $12,500 of unencumbered liquidity. SLF had made customary representations and warranties and was required to comply with various covenants and reporting requirements.

There was no outstanding balance under the SLF II Credit Facility as of June 30, 2020. For the three and nine months ended June 30, 2020, SLF II had borrowings on the SLF Credit Facility of $0 and $0, respectively, and SLF II had repayments on the SLF Credit Facility totaling $29,543 and $52,252, respectively.
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)


For the three and nine months ended June 30, 2020 and 2019, the components of interest expense, cash paid for interest and facility fees, average interest rates and average outstanding balances for the SLF Credit Facility were as follows:

For the three months ended June 30,For the nine months ended June 30,
2020201920202019
Stated interest expense$159  $—  $445  $—  
Cash paid for interest expense219  —  445  —  
Annualized average stated interest rate2.5 %— %3.1 %—  
Average outstanding balance$26,037  $—  $19,424  $—  

Effective January 1, 2020, the Company assumed, as a result of the Purchase Agreement, the GCIC SLF Credit Facility. On June 29, 2020, the GCIC SLF Credit Facility was repaid in full and subsequently terminated. Prior to the facility's termination, the reinvestment period of the GCIC SLF Credit Facility expired on September 27, 2018 and the maximum commitment was equal to advances outstanding due to leverage and borrowing base restrictions. The stated maturity date of the GCIC SLF Credit Facility was September 28, 2022. The GCIC SLF Credit Facility bore interest at one-month LIBOR plus 2.05% per annum, depending on the composition of the collateral asset portfolio. The GCIC SLF Credit Facility was collateralized by all of the assets held by GCIC SLF II and GCIC SLF had committed to provide a minimum of $7,500 of unencumbered liquidity. GCIC SLF had made customary representations and warranties and was required to comply with various covenants and reporting requirements.

The was no outstanding balance under the GCIC SLF Credit Facility as of June 30, 2020. For the three and nine months ended June 30, 2020, GCIC SLF II had borrowings on the GCIC SLF Credit Facility of $0 and $0, respectively, and GCIC SLF II had repayments on the GCIC SLF Credit Facility totaling $31,655 and $44,416, respectively.

For the three and nine months ended June 30, 2020 and 2019, the components of interest expense, cash paid for interest and facility fees, average interest rates and average outstanding balances for the GCIC SLF Credit Facility were as follows:

For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Stated interest expense$185  $—  $480  $—  
Cash paid for interest expense250  —  487  —  
Annualized average stated interest rate2.5 %N/A3.0 %N/A
Average outstanding balance$30,361  $—  $21,233  $—  

Revolver:  On June 22, 2016, the Company entered into the Adviser Revolver with the Investment Adviser with a maximum credit limit of $20,000 and expiration date of June 22, 2019. On June 21, 2019, the Company and the Investment Adviser amended the Adviser Revolver to and among other things, (a) increase the maximum credit limit to $40,000, and (b) change the expiration date to June 21, 2022. On October 28, 2019, the Company entered into an amendment to the Adviser Revolver to increase the borrowing capacity under the Adviser Revolver from $40,000 to $100,000, and simultaneously terminated the Adviser Revolver II, which had been assumed by the Company as a result of the Merger on September 16, 2019. The Adviser Revolver bears an interest rate equal to the short-term Applicable Federal Rate, which was 0.2% as of June 30, 2020. As of June 30, 2020 and September 30, 2019, the Company had no outstanding debt under the Adviser Revolver or the Adviser Revolver II. For the three and nine months ended June 30, 2020, the Company had $5,000 and $127,500 in borrowings and $32,500 and $127,500 in repayments on the Adviser Revolver. For the three and nine months ended June 30, 2019, the Company had no
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

borrowings or repayments on the Adviser Revolver. For the three and nine months ended June 30, 2020, the Company incurred $11 and $33 in interest expense and $24 and $42 in cash was paid for interest on the Adviser Revolver, respectively. For the three and nine months ended June 30, 2019, the Company incurred no interest expense and no cash was paid for interest on the Adviser Revolver.

Other Short-Term Borrowings:  Borrowings with original maturities of less than one year are classified as short-term.  The Company’s short-term borrowings are the result of investments that were sold under repurchase agreements.  Investments sold under repurchase agreements are accounted for as collateralized borrowings as the sale of the investment does not qualify for sale accounting under ASC Topic 860 and remains as an investment on the Consolidated Statements of Financial Condition.

As of June 30, 2020 and September 30, 2019, the Company had no short-term borrowings. For the three and nine months ended June 30, 2020, the annualized effective interest rate on short-term borrowings was 0.0% and 3.3%, respectively, and interest expense was $0 and $1,533, respectively. For the three and nine months ended June 30, 2019, the annualized effective interest rate on short-term borrowings was 4.9% and 4.8%, respectively, and interest expense was $26 and $276, respectively. The net change in unrealized appreciation (depreciation) for the three and nine months ended June 30, 2020, reported within the net change in unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies was $0, and $0, respectively. The net change in unrealized appreciation (depreciation) for the three and nine months ended June 30, 2019, reported within the net change in unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies was $105.

For the three and nine months ended June 30, 2020, the average total debt outstanding (including the debt under the 2014 Debt Securitization, the 2018 Debt Securitization, the GCIC 2018 Debt Securitization, SBA Debentures, Credit Facility, MS Credit Facility, MS Credit Facility II, WF Credit Facility, DB Credit Facility, SLF Credit Facility, GCIC SLF Credit Facility, Adviser Revolver, Adviser Revolver II and Other Short-Term Borrowings) was $2,186,392 and $2,272,045, respectively. For the three and nine months ended June 30, 2019, the average total debt outstanding (including the debt under the 2010 Debt Securitization, 2014 Debt Securitization, the 2018 Debt Securitization, SBA debentures, Credit Facility, MS Credit Facility, MS Credit Facility II, Adviser Revolver, and Other Short-Term Borrowings) was $1,040,683 and $993,221, respectively.

For the three and nine months ended June 30, 2020, the effective annualized average interest rate, which includes amortization of debt financing costs and non-usage facility fees, on the Company's total debt was 3.2% and 3.6%, respectively. For the three and nine months ended June 30, 2019, the effective annualized average interest rate, which includes amortization of debt financing costs and non-usage facility fees, on the Company's total debt was 4.2% and 4.2%, respectively.

A summary of the Company’s maturity requirements for borrowings as of June 30, 2020 is as follows:
Payments Due by Period
  TotalLess Than
1 Year		1 – 3 Years3 – 5 YearsMore Than
5 Years
2014 Debt Securitization$80,527  $—  $—  $—  $80,527  
2018 Debt Securitization408,200  —  —  —  408,200  
2018 GCIC Debt Securitization(1)
541,926  —  —  —  541,926  
SBA Debentures287,450  —  69,700  35,500  182,250  
WF Credit Facility214,358  —  —  214,358  —  
MS Credit Facility II325,831  —  —  325,831  —  
DB Credit Facility150,280  —  —  150,280  —  
Total borrowings$2,008,572  $—  $69,700  $725,969  $1,212,903  

(1) Includes $4,574 of discount recognized on the assumption of the 2018 GCIC Debt Securitization in the Merger.



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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Note 8. Commitments and Contingencies

Commitments: As of June 30, 2020, the Company had outstanding commitments to fund investments totaling $109,155, including $28,253 of commitments on undrawn revolvers. As of September 30, 2019, the Company had outstanding commitments to fund investments totaling $261,642. As described in Note 4, as of September 30, 2019, the Company had commitments of up to $100,117 to SLF and up to $61,019 to GCIC SLF, that could have been contributed primarily for the purpose of funding new investments approved by the investment committees of SLF and GCIC SLF, as applicable.

Indemnifications:  In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as these involve future claims against the Company that have not occurred. The Company expects the risk of any future obligations under these indemnifications to be remote.
Off-balance sheet risk: Off-balance sheet risk refers to an unrecorded potential liability that may result in a future obligation or loss, even though it does not appear on the Consolidated Statements of Financial Condition. The Company has entered and, in the future, may again enter into derivative instruments that contain elements of off-balance sheet market and credit risk. Refer to Note 5 for outstanding forward currency contracts as of June 30, 2020 and September 30, 2019. Derivative instruments can be affected by market conditions, such as interest rate volatility, which could impact the fair value of the derivative instruments. If market conditions move against the Company, it may not achieve the anticipated benefits of the derivative instruments and may realize a loss. The Company minimizes market risk through monitoring its investments and borrowings.

Concentration of credit and counterparty risk:  Credit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of the contract. The Company has engaged and, in the future, may engage again in derivative transactions with counterparties. In the event that the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparties or issuers of the instruments. The Company’s maximum loss that it could incur related to counterparty risk on its derivative instruments is the value of the collateral for that respective derivative instrument. It is the Company’s policy to review, as necessary, the credit standing of each counterparty.

Legal proceedings:  In the normal course of business, the Company is subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While there can be no assurance of the ultimate disposition of any such proceedings, the Company does not believe any disposition will have a material adverse effect on the Company’s consolidated financial statements.

Note 9. Financial Highlights

The financial highlights for the Company are as follows:
For the nine months ended June 30,
Per share data:(1)
20202019
Net asset value at beginning of period$16.76  $16.10  
Net increase in net assets as a result of issuance of DRIP shares(2)
0.01  0.01  
Net decrease in net assets as a result of issuance of shares(3)
(1.13) —  
Distributions declared:
From net investment income(1.00) (0.95) 
From capital gains(0.08) (0.13) 
Net investment income0.71  0.98  
Net realized gain (loss) on investment transactions(0.10) (0.07) 
Net change in unrealized appreciation (depreciation) on investment transactions(4)
(1.12) 0.01  
Net asset value at end of period$14.05  $15.95  
Per share market value at end of period$11.65  $17.80  
Total return based on market value(5)
(33.40)%1.23 %
Number of common shares outstanding167,259,511  60,715,908  
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)


For the nine months ended June 30,
Listed below are supplemental data and ratios to the financial highlights:20202019
Ratio of net investment income to average net assets*
6.07 %8.18 %
Ratio of total expenses to average net assets(6)*
7.54 %8.54 %
Ratio of incentive fees to average net assets0.58 %0.89 %
Ratio of expenses (without incentive fees) to average net assets*
6.96 %7.65 %
Total return based on average net asset value(7)*
(2.42)%7.65 %
Net assets at end of period$2,350,053  $968,220  
Average debt outstanding$2,272,044  $993,221  
Average debt outstanding per share$13.58  $16.36  
Portfolio turnover*
20.04 %22.15 %
Asset coverage ratio(8)
235.83 %227.84 %
Asset coverage ratio per unit(9)
$2,358  $2,278  
Average market value per unit:(10)
2010 Debt SecuritizationN/AN/A
2014 Debt SecuritizationN/AN/A
2018 Debt SecuritizationN/AN/A
2018 GCIC Debt SecuritizationN/AN/A
SBA DebenturesN/AN/A
GCIC Credit FacilityN/AN/A
MS Credit FacilityN/AN/A
MS Credit Facility IIN/AN/A
RevolverN/AN/A
WF Credit Facility N/AN/A
DB Credit Facility N/AN/A
Adviser RevolverN/AN/A

* Annualized for periods less than one year. 
(1)Based on actual number of shares outstanding at the end of the corresponding period or the weighted average shares outstanding for the period, unless otherwise noted, as appropriate.
(2)Net increase in net assets as a result of issuance of shares related to shares issued through the DRIP.
(3)Net decrease in net assets as a result of issuance of shares through the rights offering. Refer to Note 11.
(4)Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on the shares outstanding as of the dividend record date.
(5)Total return based on market value assumes distributions are reinvested in accordance with the DRIP. Total return does not include sales load.
(6)Expenses, other than incentive fees, are annualized for a period less than one year.
(7)Total return based on average net asset value is calculated as (a) the net increase/(decrease) in net assets resulting from operations divided by (b) the daily average of total net assets. Total return does not include sales load.
(8)Effective February 6, 2019, in accordance with Section 61(a)(2) of the 1940 Act, with certain limited exceptions, the Company is allowed to borrow amounts such that its asset coverage, as defined in the 1940 ACT, is at least 150% after such borrowing (excluding the Company's SBA debentures pursuant to exemptive relief received by the Company from the SEC). Prior to February 6, 2019, in accordance with the 1940 Act, with certain limited exceptions, the Company was allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, was at least 200% after such borrowing (excluding the Company's SBA debentures pursuant to exemptive relief received by the Company from the SEC).
(9)Asset coverage ratio per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage ratio per unit is expressed in terms of dollar amounts per $1,000 of indebtedness. These amounts exclude the SBA debentures pursuant to exemptive relief the Company received from the SEC on September 13, 2011.
(10)Not applicable because such senior securities are not registered for public trading.
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

Note 10. Earnings Per Share

The following information sets forth the computation of the net increase/(decrease) in net assets per share resulting from operations for the three and nine months ended June 30, 2020 and 2019:
Three months ended June 30,Nine months ended June 30,
  2020201920202019
Earnings (loss) available to stockholders$142,143  $19,200  $(39,773) $55,427  
Basic and diluted weighted average shares outstanding(1)
153,184,678  62,558,079  142,753,605  62,358,520  
Basic and diluted earnings (loss) per share$0.93  $0.31  $(0.28) $0.89  




(1)The weighted average shares of the Company's common stock outstanding used in computing basic and diluted earnings (loss) per share for the three and nine months ended June 30, 2020 and 2019 have been adjusted retroactively by a factor of approximately 1.03% to recognize the bonus element associated with rights to acquire shares of the Company's common stock that were issued to stockholders of record as of April 8, 2020. See Note 11 for more information on the transferable rights offering.

Note 11. Stockholders' Equity

On May 15, 2020, the Company completed a transferable rights offering, issuing 33,451,902 shares at a subscription price of $9.17 per share. Net proceeds after deducting dealer manager fees and other offering expenses were approximately $300,427. 3,191,448 shares were purchased in the rights offering by affiliates of the Investment Adviser.
shares were purchased in the rights offering by affiliates of the Investment Adviser.


Note 12. Dividends and Distributions

The Company’s dividends and distributions are recorded on the ex-dividend date. The following table summarizes the Company’s dividend declarations and distributions during the nine months ended June 30, 2020 and 2019:

Date DeclaredRecord DatePayment DateAmount
Per Share		Cash
Distribution		DRIP Shares
Issued		DRIP Shares
Value
Nine months ended June 30, 2020
11/22/201912/12/201912/30/2019$0.46  
(1)
$40,793  1,149,409  $20,230  
02/04/202003/06/202003/27/2020$0.33  $30,123  —  $14,034  
(2)
05/06/202006/09/202006/29/2020$0.29  $31,851  —  $16,654  
(3)
Nine months ended June 30, 2019        
11/27/201812/12/201812/28/2018$0.44  
(4)
$22,339  256,785  $4,134  
02/05/201903/07/201903/28/2019$0.32  $16,507  165,164  $2,828  
05/07/201906/07/201906/28/2019$0.32  $17,215  128,505  $2,173  


(1)Includes a special distribution of $0.13 per share.
(2)In accordance with the Company's DRIP, 1,125,098 shares of the Company's stock were purchased in the open market at an average price of $12.47 and were issued to stockholders of the Company participating in DRIP.
(3)In accordance with the Company's DRIP, 1,399,836 shares of the Company's stock were purchased in the open market at an average price of $11.90 and were issued to stockholders of the Company participating in DRIP.
(4)Includes a special distribution of $0.12 per share.

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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)




Note 13. Subsequent Events

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date of issuance. There are no subsequent events to disclose except for the following:

On August 4, 2020, the Company's board of directors declared a quarterly distribution of $0.29 per share, which is payable on September 29, 2020 to holders of record as of September 8, 2020.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information contained in this section should be read in conjunction with our consolidated financial statements and related notes thereto appearing elsewhere in this quarterly report on Form 10-Q. In this report, “we,” “us,” “our” and “Golub Capital BDC” refer to Golub Capital BDC, Inc. and its consolidated subsidiaries.

Forward-Looking Statements

Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties, including statements as to:

•our future operating results;
•our business prospects and the prospects of our portfolio companies, including our and their ability to achieve our respective objectives as a result of the coronavirus (“COVID-19”) pandemic;
•the effect of investments that we expect to make and the competition for those investments;
•our contractual arrangements and relationships with third parties;
•actual and potential conflicts of interest with GC Advisors LLC, or GC Advisors, and other affiliates of Golub Capital LLC, or collectively, Golub Capital;
•the dependence of our future success on the general economy and its effect on the industries in which we invest;
•the ability of our portfolio companies to achieve their objectives;
•the use of borrowed money to finance a portion of our investments and the effect of the COVID-19 pandemic on the availability of equity and debt capital and our use of borrowed funds to finance a portion of our investments;
•the adequacy of our financing sources and working capital;
•the timing of cash flows, if any, from the operations of our portfolio companies;
•general economic and political trends and other external factors, including the COVID-19 pandemic;
•changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets that could result in changes to the value of our assets, including changes from the impact of the COVID-19 pandemic;
•the ability of GC Advisors to locate suitable investments for us and to monitor and administer our investments;
•the ability of GC Advisors or its affiliates to attract and retain highly talented professionals;
•the ability of GC Advisors to continue to effectively manage our business due to the disruptions caused by the COVID-19 pandemic;
•our ability to qualify and maintain our qualification as a regulated investment company, or RIC, and as a business development company;
•general price and volume fluctuations in the stock markets;
•the impact on our business of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or Dodd-Frank, and the rules and regulations issued thereunder and any actions toward repeal thereof; and
•the effect of changes to tax legislation and our tax position.

Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words. The forward looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth as “Risk Factors” in our annual report on Form 10-K for the year ended September 30, 2019 and in our quarterly report on Form 10-Q for the three months ended March 31, 2020.

We have based the forward-looking statements included in this report on information available to us on the date of this report. Actual results could differ materially from those anticipated in our forward-looking statements and future
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results could differ materially from historical performance. You are advised to consult any additional disclosures that we make directly to you or through reports that we have filed or in the future file with the Securities and Exchange Commission, or the SEC, including annual reports on Form 10-K, registration statements on Form N-2, quarterly reports on Form 10-Q and current reports on Form 8-K. This quarterly report on Form 10-Q contains statistics and other data that have been obtained from or compiled from information made available by third-party service providers. We have not independently verified such statistics or data.

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Overview

We are an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, or the 1940 Act. In addition, for U.S. federal income tax purposes, we have elected to be treated as a RIC under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code. As a business development company and a RIC, we are also subject to certain constraints, including limitations imposed by the 1940 Act and the Code.

Our shares are currently listed on The Nasdaq Global Select Market under the symbol “GBDC”.

Our investment objective is to generate current income and capital appreciation by investing primarily in one stop (a loan that combines characteristics of traditional first lien senior secured loans and second lien or subordinated loans and that are often referred to by other middle-market lenders as unitranche loans) and other senior secured loans of U.S. middle-market companies. We also selectively invest in second lien and subordinated loans of, and warrants and minority equity securities in U.S. middle-market companies. We intend to achieve our investment objective by (1) accessing the established loan origination channels developed by Golub Capital, a leading lender to U.S. middle-market companies with over $30.0 billion in capital under management as of June 30, 2020, (2) selecting investments within our core middle-market company focus, (3) partnering with experienced private equity firms, or sponsors, in many cases with whom Golub Capital has invested alongside in the past, (4) implementing the disciplined underwriting standards of Golub Capital and (5) drawing upon the aggregate experience and resources of Golub Capital.

Our investment activities are managed by GC Advisors and supervised by our board of directors of which a majority of the members are independent of us, GC Advisors and its affiliates.

Under an investment advisory agreement, or the Investment Advisory Agreement, we have agreed to pay GC Advisors an annual base management fee based on our average adjusted gross assets as well as an incentive fee based on our investment performance. The Investment Advisory Agreement was approved by our board of directors in July 2019 and by our stockholders in September 2019. The Investment Advisory Agreement was entered into effective as of September 16, 2019 and will continue for an initial two-year term. Prior to September 16, 2019, we were subject to an investment advisory agreement with GC Advisors, or the Prior Investment Advisory Agreement. The changes to the Investment Advisory Agreement, as compared to the Prior Investment Advisory Agreement, consisted of revisions to (i) exclude the impact of purchase accounting resulting from a merger or acquisition, including our acquisition of Golub Capital Investment Corporation, or GCIC, from the calculation of income subject to the income incentive fee payable and the calculation of the cumulative incentive fee cap under the Investment Advisory Agreement and (ii) convert the cumulative incentive fee cap into a per share calculation. Under an administration agreement, or the Administration Agreement, we are provided with certain administrative services by an administrator, or the Administrator, which is currently Golub Capital LLC. Under the Administration Agreement, we have agreed to reimburse the Administrator for our allocable portion (subject to the review and approval of our independent directors) of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement.

We seek to create a portfolio that includes primarily one stop and other senior secured loans by primarily investing approximately $10.0 million to $75.0 million of capital, on average, in the securities of U.S. middle-market companies. We also selectively invest more than $75.0 million in some of our portfolio companies and generally expect that the size of our individual investments will vary proportionately with the size of our capital base.

We generally invest in securities that have been rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated. These securities, which are often referred to as “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. In addition, many of our debt investments have floating interest rates that reset on a periodic basis and typically do not fully pay down principal prior to maturity, which may increase our risk of losing part or all of our investment.

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As of June 30, 2020 and September 30, 2019, our portfolio at fair value was comprised of the following:
As of June 30, 2020As of September 30, 2019
Investment TypeInvestments at
Fair Value
(In thousands)		Percentage of
Total
Investments		Investments at
Fair Value
(In thousands)		Percentage of
Total
Investments
Senior secured$604,452  14.2 %$589,340  13.7 %
One stop3,548,148  83.5  3,474,116  80.9  
Second lien20,418  0.5  19,473  0.5  
Subordinated debt560  — *369  — *
LLC equity interests in SLF and GCIC SLF(1)
—  —  123,644  2.9  
Equity76,792  1.8  85,990  2.0  
Total$4,250,370  100.0 %$4,292,932  100.0 %


*Represents an amount less than 0.1%.
(1)
Proceeds from limited liability company, or LLC, equity interests invested in Senior Loan Fund LLC, an unconsolidated Delaware LLC, or SLF, and GCIC Senior Loan Fund LLC, an unconsolidated Delaware LLC, or GCIC SLF, were utilized by SLF and GCIC SLF, or the Senior Loan Funds and each a Senior Loan Fund, to invest in senior secured loans. On January 1, 2020, SLF and GCIC SLF became our wholly-owned subsidiaries and the assets and liabilities of the Senior Loan Funds were consolidated into us. See"--SLF and GCIC SLF Purchase Agreement" below.
One stop loans include loans to technology companies undergoing strong growth due to new services, increased adoption and/or entry into new markets. We refer to loans to these companies as late stage lending loans. Other targeted characteristics of late stage lending businesses include strong customer revenue retention rates, a diversified customer base and backing from growth equity or venture capital firms. In some cases, the borrower’s high revenue growth is supported by a high level of discretionary spending. As part of the underwriting of such loans and consistent with industry practice, we adjust our characterization of the earnings of such borrowers for a reduction or elimination of such discretionary expenses, if appropriate. As of June 30, 2020 and September 30, 2019, one stop loans included $430.7 million and $414.7 million, respectively, of late stage lending loans at fair value.

As of June 30, 2020 and September 30, 2019, we had debt and equity investments in 254 and 241 portfolio companies, respectively. In addition, as of September 30, 2019, we had an investment in SLF and GCIC SLF.

The following table shows the weighted average income yield and weighted average investment income yield of our earning portfolio company investments, which represented nearly 100% of our debt investments, as well as the total return based on our average net asset value, and the total return based on the change in the quoted market price of our stock and assuming distributions were reinvested in accordance with our dividend reinvestment plan, or DRIP, in each case for the three and nine months ended June 30, 2020 and 2019:
For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Weighted average annualized income yield (1)
7.7%8.6%7.7%8.7%
Weighted average annualized investment income yield (2)
8.1%9.2%8.1%9.2%
Total return based on average net asset value (3)*
26.8%7.9%(2.4)%7.7%
Total return based on market value (4)
(5.0)%1.4%(33.4)%1.2%


* Annualized for periods of less than one year.
(1)Represents income from interest and fees, excluding amortization of capitalized fees, discounts and purchase premium (as described in Note 2 of the consolidated financial statements), divided by the average fair value of earning portfolio company investments, and does not represent a return to any investor in us.
(2)Represents income from interest, fees and amortization of capitalized fees and discounts, excluding amortization of purchase premium (as described in Note 2 of the consolidated financial statements), divided by the average fair value of earning portfolio investments, and does not represent a return to any investor in us.
(3)Total return based on average net asset value is calculated as (a) the net increase in net assets resulting from operations divided by (b) the daily average of total net assets. Total return does not include sales load.
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(4)Total return based on market value assumes distributions are reinvested in accordance with the DRIP. Total return does not include sales load.
Revenues: We generate revenue in the form of interest and fee income on debt investments and capital gains and distributions, if any, on portfolio company investments that we originate or acquire. Our debt investments, whether in the form of senior secured, one stop, second lien or subordinated loans, typically have a term of three to seven years and bear interest at a fixed or floating rate. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. The frequency or volume of these repayments fluctuates significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. In some cases, our investments provide for deferred interest payments or payment-in-kind, or PIK, interest. The principal amount of loans and any accrued but unpaid interest generally become due at the maturity date. In addition, we generate revenue in the form of commitment, origination, amendment, structuring or due diligence fees, fees for providing managerial assistance and consulting fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts as interest income. We record prepayment premiums on loans as fee income. For additional details on revenues, see “Critical Accounting Policies—Revenue Recognition.”

We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the amortized cost basis of the investment or derivative instrument, without regard to unrealized gains or losses previously recognized. We record current period changes in fair value of investments and derivative instruments that are measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investment transactions in the Consolidated Statements of Operations.

Expenses:  Our primary operating expenses include the payment of fees to GC Advisors under the Investment Advisory Agreement and interest expense on our outstanding debt. We bear all other out-of-pocket costs and expenses of our operations and transactions, including:

•calculating our net asset value, or NAV (including the cost and expenses of any independent valuation firm);
•fees and expenses incurred by GC Advisors payable to third parties, including agents, consultants or other advisors, in monitoring financial and legal affairs for us and in monitoring our investments and performing due diligence on our prospective portfolio companies or otherwise relating to, or associated with, evaluating and making investments, which fees and expenses include, among other items, due diligence reports, appraisal reports, any studies commissioned by GC Advisors and travel and lodging expenses;
•expenses related to unsuccessful portfolio acquisition efforts;
•offerings of our common stock and other securities;
•administration fees and expenses, if any, payable under the Administration Agreement (including payments based upon our allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement, including rent and the allocable portion of the cost of our chief compliance officer, chief financial officer and their respective staffs);
•fees payable to third parties, including agents, consultants or other advisors, relating to, or associated with, evaluating and making investments in portfolio companies, including costs associated with meeting financial sponsors;
•transfer agent, dividend agent and custodial fees and expenses;
•U.S. federal and state registration and franchise fees;
•all costs of registration and listing our shares on any securities exchange;
•U.S. federal, state and local taxes;
•independent directors’ fees and expenses;
•costs of preparing and filing reports or other documents required by the SEC or other regulators;
•costs of any reports, proxy statements or other notices to stockholders, including printing costs;
•costs associated with individual or group stockholders;
•costs associated with compliance under the Sarbanes-Oxley Act of 2002, as amended, or the Sarbanes-Oxley Act;
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•our allocable portion of any fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums;
•direct costs and expenses of administration, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors and outside legal costs;
•proxy voting expenses; and
•all other expenses incurred by us or the Administrator in connection with administering our business.

We expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines.

GC Advisors, as collateral manager for Golub Capital BDC 2014-LLC, or the 2014 Issuer, our wholly-owned subsidiary, under a collateral management agreement, or the 2014 Collateral Management Agreement, is entitled to receive an annual fee in an amount equal to 0.25% of the principal balance of the portfolio loans held by the 2014 Issuer at the beginning of the collection period relating to each payment date, which is payable in arrears on each payment date. Under the 2014 Collateral Management Agreement, the term ‘‘collection period’’ refers to a quarterly period running from the day after the end of the prior collection period to the tenth business day prior to the payment date.

GC Advisors, as collateral manager for Golub Capital BDC CLO III LLC, or the 2018 Issuer, our indirect, wholly-owned subsidiary, under a collateral management agreement, or the 2018 Collateral Management Agreement, is entitled to receive an annual fee in an amount equal to 0.25% of the principal balance of the portfolio loans held by the 2018 Issuer at the beginning of the collection period relating to each payment date, which is payable in arrears on each payment date. Under the 2018 Collateral Management Agreement, the term "collection period" refers to the period commencing on the third business day prior to the preceding payment date and ending on (but excluding) the third business day prior to such payment date.

GC Advisors, as collateral manager for Golub Capital Investment Corporation CLO II LLC, or the GCIC 2018 Issuer, our indirect, wholly-owned subsidiary, under a collateral management agreement, or the GCIC 2018 Collateral Management Agreement, is entitled to receive an annual fee in an amount equal to 0.35% of the principal balance of the portfolio loans held by the GCIC 2018 Issuer at the beginning of the collection period relating to each payment date, which is payable in arrears on each payment date. Under the 2018 GCIC Collateral Management Agreement, the term “collection period” generally refers to a quarterly period commencing on the day after the end of the prior collection period to the tenth business day prior to the payment date.

Collateral management fees are paid directly by the 2014 Issuer, 2018 Issuer, and GCIC 2018 Issuer to GC Advisors and are offset against the management fees payable under the Investment Advisory Agreement. In addition, the 2014 Issuer paid Wells Fargo Securities, LLC structuring and placement fees for its services in connection with the initial structuring and subsequent amendments to the initial structuring of the $402.6 million term debt securitization, or the 2014 Debt Securitization. The 2018 Issuer paid Morgan Stanley & Co. LLC structuring and placement fees for its services in connection with the structuring of the $602.4 million term debt securitization, or the 2018 Debt Securitization. Before we acquired the GCIC 2018 Issuer as part of our acquisition of GCIC, the GCIC 2018 Issuer paid Wells Fargo Securities, LLC structuring and placement fees for its services in connection with the initial structuring of the $908.2 million term debt securitization, or the GCIC 2018 Debt Securitization. Term debt securitizations are also known as collateralized loan obligations, or CLOs, and are a form of secured financing incurred by us, which is consolidated by us and subject to our overall asset coverage requirement. The 2014 Issuer, the 2018 Issuer, and GCIC 2018 Issuer also agreed to pay ongoing administrative expenses to the trustee, collateral manager, independent accountants, legal counsel, rating agencies and independent managers in connection with developing and maintaining reports, and providing required services in connection with the administration of the 2014 Debt Securitization, the 2018 Debt Securitization and GCIC 2018 Debt Securitization, and collectively the Debt Securitizations, as applicable.

We believe that these administrative expenses approximate the amount of ongoing fees and expenses that we would be required to pay in connection with a traditional secured credit facility. Our common stockholders indirectly bear all of these expenses.

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GCIC Acquisition
On September 16, 2019, we completed our acquisition of GCIC, pursuant to that certain Agreement and Plan of Merger, as amended, or the Merger Agreement, dated November 27, 2018, by and among us, GCIC, Fifth Ave Subsidiary Inc., our wholly owned subsidiary, or Merger Sub, GC Advisors, and, for certain limited purposes, the Administrator. Pursuant to the Merger Agreement, Merger Sub was first merged with and into GCIC, or the Initial Merger, with GCIC as the surviving company and immediately following the Initial Merger, GCIC was then merged with and into us, the Initial Merger and subsequent merger referred to as the Merger, with us as the surviving company.
In accordance with the terms of the Merger Agreement, at the effective time of the Merger, each outstanding share of GCIC’s common stock was converted into the right to receive 0.865 shares of our common stock (with GCIC’s stockholders receiving cash in lieu of fractional shares of our common stock). As a result of the Merger, we issued an aggregate of 71,779,964 shares of our common stock to former stockholders of GCIC.
Upon the consummation of the Merger, we entered into the Investment Advisory Agreement with GC Advisors which replaced the Prior Investment Advisory Agreement.
SLF and GCIC SLF Purchase Agreement
On January 1, 2020, we entered into a purchase agreement, or the Purchase Agreement, with RGA Reinsurance
Company, or RGA, Aurora National Life Assurance Company, a wholly-owned subsidiary of RGA, or Aurora and, together with RGA, the Transferors, SLF, and GCIC SLF. Prior to entering into the Purchase Agreement, the Transferors owned 12.5% of the LLC equity interests in each Senior Loan Fund, while we owned the remaining 87.5% of the LLC equity interests in each Senior Loan Fund. Pursuant to the Purchase Agreement, RGA and Aurora agreed to sell their LLC equity interests in each Senior Loan Fund to us, effective as of January 1, 2020. As consideration for the purchase of the LLC equity interests, we paid each Transferor an amount, in cash, equal to the net asset value of such Transferor's Senior Loan Fund LLC equity interests as of December 31, 2019, or the Net Asset Value, along with interest on such Net Asset Value accrued from the date of the Purchase Agreement through, but excluding, the payment date at a rate equal to the short-term applicable federal rate. In February 2020, we paid an aggregate of $17.0 million to the Transferors to acquire their respective LLC interests in the Senior Loan Funds.

As a result of the Purchase Agreement, on January 1, 2020, SLF and GCIC SLF became our wholly-owned subsidiaries. In addition, our capital commitments and those of the Transferors were terminated. As wholly-owned subsidiaries, the assets, liabilities, income and expenses of the Senior Loan Funds were consolidated into our financial statements and notes thereto for periods ending on or after January 1, 2020, and are included for purposes of determining our asset coverage ratio.

Rights Offering

On May 15, 2020, we completed a transferable rights offering. We issued to stockholders of record on April 8, 2020 one transferable right for each four shares of our common stock held on the record date. Each holder of rights was entitled to subscribe for one share of common stock for every right held at a subscription price of $9.17 per share. On May 15, 2020, we issued a total of 33,451,902 shares. Net proceeds after deducting the dealer manager fees and other offering expenses were approximately $300.4 million. 3,191,448 shares were purchased in the rights offering by affiliates of GC Advisors.

COVID-19 Pandemic

The rapid spread of COVID-19, which has been identified as a global pandemic by the World Health Organization, resulted in governmental authorities imposing restrictions on travel and the temporary closure of many corporate offices, retail stores, restaurants, healthcare facilities, fitness clubs and manufacturing facilities and factories in affected jurisdictions. The pandemic and the resulting economic dislocations have had adverse consequences for the business operations of some of our portfolio companies and has adversely affected, and threatens to continue to adversely affect, our operations and the operations of GC Advisors (including those relating to us). GC Advisors has been monitoring the COVID-19 pandemic and its impact on our business and the business of our portfolio companies and has been focused on proactively engaging with our portfolio companies in order to collaborate with the management teams of certain portfolio companies to assess and evaluate the steps each portfolio company can take in response to the impacts of COVID-19.

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We cannot predict the full impact of the coronavirus, including the duration of the closures and restrictions described above. While several countries, as well as certain states in the United States, have begun to lift travel restrictions, business closures and other quarantine measures, recurring COVID-19 outbreaks have led to the re-introduction of such restrictions in certain states in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. As a result, we are unable to predict the duration of these business and supply-chain disruptions, the extent to which COVID-19 will negatively affect our portfolio companies’ operating results or the impact that such disruptions may have on our results of operations and financial condition. Depending on the duration and extent of the disruption to the business operations of our portfolio companies, we expect some portfolio companies, particularly those in vulnerable industries such as retail and travel, to experience financial distress and possibly to default on their financial obligations to us and their other capital providers. In addition, if such portfolio companies are subjected to prolonged and severe financial distress, we expect some of them to substantially curtail their operations, defer capital expenditures and lay off workers. These developments would be likely to permanently impair their businesses and result in a reduction in the value of our investments in them.

Business disruption and financial distress experienced by our portfolio companies is likely to reduce, over time, the amount of interest and dividend income that we receive from our investments and may require us to contribute additional capital to such companies in the form of follow on investments. We may need to restructure the capitalization of some portfolio companies, which could result in reduced interest payments or permanent impairments on our investments. Any such decrease in our net investment income would increase the percentage of our cash flows dedicated to debt service and distribution payments to stockholders. If these amounts become unsustainable, we may be required to reduce the amount of our future distributions to stockholders. We proactively and aggressively commenced on a number of actions to support and evaluate our portfolio companies when the COVID-19 pandemic began to impact the U.S. economy including gathering full information from a variety of sources including third-party experts, management teams of our borrowers, the private equity sponsor owners of our borrowers and other sources and immediate outreach to our private equity sponsor partners to establish candid, two-way, real-time communications. We believe these actions have led and will lead to increased and better solutions for our borrowers and believe our long-term relationships with these sponsors will create appropriate incentives for them to collaborate with us to address such portfolio company needs. In addition, GC Advisors’ underwriting team has segmented our portfolio to highlight those borrowers with moderate or higher risk of material impacts to their business operations from COVID-19. We believe that early identification of vulnerable credits means more and better solutions to address potential problems.

During the three months ended June 30, 2020, we executed over 50 credit-enhancing amendments (representing over 10% of total debt investments at fair value) with a focus on borrowers in COVID-19 impacted sub-sectors and had only one borrower default on their principal and interest payment. In addition, during the three months ended June 30, 2020, we experienced a meaningful reversal of some of the unrealized depreciation recognized during the three months ended March 31, 2020 as the U.S. economy began reopening sooner than expected, portfolio companies generally performed better than expected, especially those in COVID-impacted sub-sectors, and private equity sponsors have generally stepped up to support their portfolio companies. Due to the resurgence of COVID-19 in some parts of the country, we remain cautious and concerned about the on-going impacts to the U.S. economy from COVID-19, but the positive trends identified above contributed to strong financial results for the three months ended June 30, 2020.

As of June 30, 2020, subject to certain limited exceptions, we were allowed to borrow amounts such that our asset coverage, as defined in the 1940 Act, is at least 150% after such borrowing. Our revolving credit facilities, described in Note 7 in the notes to our consolidated financial statements, include customary covenants and events of default. Any failure on our part to make required payments under such facilities or to comply with such covenants could result in a default under the applicable credit facility or debt instrument. If we are unable to cure such default or obtain a waiver from the applicable lender or holder, we would experience an event of default, and the applicable lender or holder could accelerate the repayment of such indebtedness, which would negatively affect our business, financial condition, results of operations and cash flows. See “Item 1A.—Risk Factors—Risks Relating to our Business and Structure—We intend to finance our investments with borrowed money, which will accelerate and increase the potential for gain or loss on amounts invested and may increase the risk of investing in us” included in our most recent annual report on Form 10-K.

We are also subject to financial risks, including changes in market interest rates. Many of the loans in our portfolio have floating interest rates, and we expect that our loans in the future will also have floating interest rates. The interest rates of such loans are based upon a floating interest rate index, typically LIBOR, together with a spread, or margin. They generally also feature interest rate reset provisions that adjust the interest rates under such loans to current market rates on a quarterly basis. As of June 30, 2020, over 90% of our floating rate loans were subject to a minimum base rate, or floor, that we charge on our loans if the applicable interest rate index falls below such floor.
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Certain of the notes issued in each of the 2014 Debt Securitization, the 2018 Debt Securitization and the GCIC 2018 Debt Securitization have floating rate interest provisions. In addition, our revolving credit facilities also have floating rate interest provisions. As a result of the COVID-19 pandemic and the related decision of the U.S. Federal Reserve to reduce certain interest rates, LIBOR decreased beginning in March 2020. A prolonged reduction in interest rates will reduce our gross investment income and could result in a decrease in our net investment income if such decreases in LIBOR are not offset by a corresponding increase in the spread over LIBOR that we earn on such loans, a decrease in the income incentive fee as a result of our 8% hurdle rate or a decrease in the interest rate of our floating interest rate liabilities tied to LIBOR. See “Item 3. Quantitative and Qualitative Disclosures About Market Risk” for an analysis of the impact of hypothetical base rate changes in interest rates.

We completed an industry subsegment analysis as of June 30, 2020 to evaluate the exposure of our portfolio companies to adverse effects on their business operations as a result of the COVID-19 pandemic. As of June 30, 2020, more than 80% of our portfolio at fair value was comprised of investments in industry subsegments that we have identified as less exposed to negative impacts from the COVID-19 pandemic, less than 20% of our portfolio at fair value was comprised of investments in industry subsegments that we believe have and will continue to experience significant financial distress as a result of the COVID-19 pandemic and less than 1% of our portfolio at fair value was comprised of investments in industry subsegments that were identified as most significantly exposed to adverse effects resulting from the COVID-19 pandemic. As of June 30, 2020, less than 1% of our portfolio at fair value represented second lien debt, mezzanine debt and other asset classes that we believe are particularly vulnerable due to the economic and market volatility and uncertainty resulting from the COVID-19 pandemic. Our portfolio by industry subsegments and our view of the exposure of our portfolio companies to the adverse effects of the COVID-19 pandemic as of June 30, 2020 is as follows:

Industry Subsegments1
Less exposed to COVID-19
(>80% of portfolio2)
Significantly exposed to COVID-19 exposure
(<20% of portfolio2)
Most significantly exposed to COVID-19
(<1% of portfolio2)
Software & TechnologyRestaurantsAirlines & Aircraft Finance
Business ServicesDental CareBoating & Marine
Healthcare3
Eye CareEntertainment
Aerospace & DefenseFitness FranchisesGaming
DistributionRetailHotels
Financial ServicesMetals & Mining
Food & BeverageOil & Gas
ManufacturingProject Finance
EducationReal Estate
Shipping

(1)Industry subsegments are based on GC Advisors' internal analysis and industry classifications as of June 30, 2020.
(2)At fair value as of June 30, 2020.
(3)Excludes Dental Care and Eye Care subsegments.


The table below details changes in the weighted average price of our debt investments held as of June 30, 2020 and the net change in unrealized appreciation (depreciation) on investments for the three months ended June 30, 2020 by Internal Performance Rating (as defined in the "Portfolio Composition, Investment Activity and Yield" section below). Additionally, the following table details the primary drivers of changes in weighted average price of our debt investments by Internal Performance Rating category as of June 30, 2020 as compared to March 31, 2020.

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Weighted Average Price1
CategoryAs of March 31, 2020As of June 30, 2020
Net Change in Unrealized Appreciation (Depreciation) on Investments for the three months ended June 30, 2020 per share (2)(3)
% of Net Change in Unrealized Appreciation (Depreciation) on Investments for the three months ended June 30, 2020 (2)
Internal Performance Ratings 4 and 5
(Performing At or Above Expectations)		96.2  98.7  $0.75  100.0 %
Internal Performance Rating 3
(Performing Below Expectations)		90.0  90.9  0.05  7.0 %
Internal Performance Ratings 1 and 2
(Performing Materially Below Expectations)		65.1  57.4  (0.05) (7.0)%
Total$94.0  $96.3  $0.75  100.0 %

(1)Includes debt investments only. “Total” row reflects weighted average price of total fair value of debt investments.
(2)Net Change in Unrealized Depreciation on Investments Held as of June 30, 2020 includes the net change in unrealized appreciation (depreciation) for the three months ended June 30, 2020.
(3)Based on weighted average shares outstanding for the three months ended June 30, 2020.


We and GC Advisors continue to monitor the rapidly evolving situation relating to the COVID-19 pandemic and guidance from U.S. and international authorities, including federal, state and local public health authorities and future recommendations from such authorities may further impact our business operations and financial results. In such circumstances, there may be developments outside our control requiring us to adjust our plan of operation. As such, given the dynamic nature of this situation, we cannot reasonably estimate the impacts of the COVID-19 pandemic on our financial condition, results of operations or cash flows in future periods.



Recent Developments

On August 4, 2020, our board of directors declared a quarterly distribution of $0.29 per share, which is payable on September 29, 2020 to holders of record as of September 8, 2020.




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Consolidated Results of Operations

Consolidated operating results for the three and nine months ended June 30, 2020 and 2019 are as follows:
For the three months ended June 30,VariancesFor the nine months ended June 30,Variances
  202020192020 vs. 2019202020192020 vs. 2019
  (In thousands)(In thousands)
Interest income$76,075  $38,828  $37,247  $243,245  $115,409  $127,836  
Income from accretion of discounts and origination fees4,025  2,694  1,331  12,566  6,624  5,942  
GCIC acquisition purchase premium amortization(7,558) —  (7,558) (31,995) —  (31,995) 
Dividend income from LLC equity interests in SLF and GCIC SLF(1)
—  —  —  1,905  —  1,905  
Dividend income—  59  (59) 180  117  63  
Fee income668  524  144  1,040  1,171  (131) 
Total investment income73,210  42,105  31,105  226,941  123,321  103,620  
Total expenses38,142  22,699  15,443  127,196  64,042  63,154  
Net investment income (loss)35,068  19,406  15,662  99,745  59,279  40,466  
Net realized gain (loss) on investment transactions (4,905) (700) (4,205) (11,724) (4,539) (7,185) 
Net realized gain (loss) on investment transactions due to purchase premium(19) —  (19) (2,369) —  (2,369) 
Net change in unrealized appreciation (depreciation) on investment transactions excluding purchase premium
104,422  494  103,928  (159,789) 687  (160,476) 
Net change in unrealized depreciation on investment transactions due to purchase premium
7,577  —  7,577  34,364  —  34,364  
Net gain (loss) on investment transactions 107,075  (206) 107,281  (139,518) (3,852) (135,666) 
Net increase (decrease) in net assets resulting from operations$142,143  $19,200  $122,943  $(39,773) $55,427  $(95,200) 
Average earning debt investments, at fair value(2)
$4,009,622  $1,828,616  $2,181,006  $4,213,938  $1,798,034  $2,415,904  

(1)For periods ending on or after January 1, 2020, the assets and liabilities of SLF and GCIC SLF are consolidated into our financial statements and notes thereto. See “SLF and GCIC SLF Purchase Agreement” below.

(2)Does not include our investments in LLC equity interests in SLF and GCIC SLF.
Net income can vary substantially from period to period for various reasons, including the recognition of realized gains and losses and unrealized appreciation and depreciation and as a result of the acquisition of GCIC pursuant to the Merger. As a result, quarterly and year-to-date comparisons of net income may not be meaningful.

On September 16, 2019, we completed our acquisition of GCIC. The acquisition was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification, or ASC, 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 and liabilities assumed, the premium paid by us was allocated to the cost of the GCIC assets acquired by us pro-rata based on their relative fair value. Immediately following the acquisition of GCIC, we 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 our Consolidated Statement of Operations. The purchase premium allocated to investments in loan securities 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 equity securities acquired from GCIC and disposition of such equity securities at fair value, we will recognize a realized loss with a corresponding reversal of the unrealized depreciation upon disposition of the equity securities acquired.

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As a supplement to our GAAP financial measures, we have provided the following non-GAAP financial measures that we believe are useful for the reasons described below:
•“Adjusted Net Investment Income” - excludes the amortization of the purchase price premium and the accrual for the capital gain incentive fee (including the portion of such accrual that is not payable under the Investment Advisory Agreement or Prior Investment Advisory Agreement) from net investment income calculated in accordance with GAAP;
•“Adjusted Net Realized and Unrealized Gain/(Loss)” - excludes the unrealized loss resulting from the purchase premium write-down and the corresponding reversal of the unrealized loss resulting from the amortization of the premium on loans or from the sale of equity investments from the determination of realized and unrealized gain/(loss) determined in accordance with GAAP; and
•“Adjusted Net Income/(Loss)” – calculates net income and earnings per share based on Adjusted Net Investment Income and Adjusted Net Realized and Unrealized Gain/(Loss).
For the three months ended June 30,For the nine months ended June 30,
2020201920202019
  (In thousands)(In thousands)
Net investment income $35,068  $19,406  $99,745  $59,279  
Add: GCIC acquisition purchase premium amortization7,558  —  31,995  —  
Less: Accrual (reversal) for capital gain incentive fee —  29  —  (1,118) 
Adjusted net investment income $42,626  $19,435  $131,740  $58,161  
Net gain (loss) on investment transactions $107,075  $(206) $(139,518) $(3,852) 
Add: Realized loss on investment transactions due to purchase premium19  —  2,369  —  
Less: Net change in unrealized appreciation on investment transactions due to purchase premium (7,577) —  (34,364) —  
Adjusted net realized and unrealized gain/(loss)$99,517  99517$(206) $(171,513) $(3,852) 
Net increase (decrease) in net assets resulting from operations$142,143  $19,200  $(39,773) $55,427  
Add: GCIC acquisition purchase premium amortization7,558  —  31,995  —  
Less: Accrual (reversal) for capital gain incentive fee —  29  —  (1,118) 
Add: Realized loss on investment transactions due to purchase premium19  —  2,369  —  
Less: Net change in unrealized appreciation on investment transactions due to purchase premium (7,577) —  (34,364) —  
Adjusted net income/(loss)$142,143  $19,229  $(39,773) $54,309  

We believe that excluding the financial impact of the purchase premium in the above non-GAAP financial measures is useful for investors as this is a non-cash expense/loss and is one method we use to measure our financial condition and results of operations. In addition, we believe 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 either the Investment Advisory Agreement or the Prior Investment Advisory Agreement.

Although these non-GAAP financial measures are intended to enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP.

Investment Income

Investment income increased from the three months ended June 30, 2019 to the three months ended June 30, 2020 by $31.1 million primarily as a result of an increase in the average earning debt investments balance, which is the average balance of accruing loans in our investment portfolio, of $2.2 billion as a result of the acquisition of GCIC on September 16, 2019 and the consolidation of SLF and GCIC SLF on January 1, 2020. This increase in our investment income as a result of an increase in the average balance of our accruing loans was partially offset by amortization of the GCIC acquisition purchase premium. Investment income increased from the nine months ended June 30, 2019 to the nine months ended June 30, 2020 by $103.6 million primarily as a result of an increase in the average earning debt investments balance of $2.4 billion as a result of the acquisition of GCIC and the consolidation of SLF and GCIC SLF, partially offset by the amortization of the GCIC acquisition purchase premium.

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The income yield by debt security type for the three and nine months ended June 30, 2020 and 2019 was as follows:
For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Senior secured7.1%7.6%6.7%7.5%
One stop7.8%8.7%7.9%8.8%
Second lien11.0%10.9%11.2%10.8%
Subordinated debt10.2%7.6%16.1%8.5%

Income yields on one stop and senior secured loans decreased for the three and nine months ended June 30, 2020 as compared to the three and nine months ended June 30, 2019, primarily due to a decrease in the average LIBOR.
As of June 30, 2020, we have three second lien investments and four subordinated debt investments as shown in the Consolidated Schedule of Investments. Due to the limited number of second lien and subordinated debt investments, income yields on second lien and subordinated debt investments can be significantly impacted by the addition, subtraction or refinancing of one investment.

For additional details on investment yields and asset mix, refer to the “Liquidity and Capital Resources - Portfolio Composition, Investment Activity and Yield” section below.

Expenses

The following table summarizes our expenses for the three and nine months ended June 30, 2020 and 2019:
For the three months ended June 30,VariancesFor the nine months ended June 30,Variance
  202020192020 vs. 2019202020192020 vs. 2019
  (In thousands)(In thousands)
Interest and other debt financing expenses$15,977  $10,388  $5,589  $58,501  $29,672  $28,829  
Amortization of debt issuance costs1,539  461  1,078  2,843  1,597  1,246  
Base management fee14,437  6,675  7,762  44,501  19,708  24,793  
Income incentive fee3,081  3,500  (419) 12,832  9,696  3,136  
Capital gain incentive fee—  29  (29) —  (1,118) 1,118  
Professional fees1,324  727  597  3,308  1,981  1,327  
Administrative service fee1,613  681  932  4,461  2,043  2,418  
General and administrative expenses171  238  (67) 750  463  287  
Total expenses$38,142  $22,699  $15,443  $127,196  $64,042  $63,154  
Average debt outstanding$2,186,392  $1,040,682  $1,145,710  $2,272,044  $993,221  $1,278,823  

Interest Expense

Interest and other debt financing expenses increased by $5.6 million from the three months ended June 30, 2019 to the three months ended June 30, 2020 primarily due to an increase in the weighted average of outstanding borrowings from $1.0 billion for the three months ended June 30, 2019 to $2.2 billion for the three months ended June 30, 2020. Interest and other debt financing expenses increased by $28.8 million from the nine months ended June 30, 2019 to the nine months ended June 30, 2020 primarily due to an increase in the weighted average of outstanding borrowings from $1.0 billion for the nine months ended June 30, 2019 to $2.3 billion for nine months ended June 30, 2020. For more information about our outstanding borrowings for the nine months ended June 30, 2020 and 2019, including the terms thereof, see Note 7. Borrowings in the notes to our consolidated financial statements and the “Liquidity and Capital Resources” section below.

The effective annualized average interest rate, which includes amortization of debt financing costs and non-usage facility fee, on our outstanding debt decreased to 3.2% for the three months ended June 30, 2020 from 4.2% for the three months ended June 30, 2019 primarily due to a lower average LIBOR.

The effective annualized average interest rate, which includes amortization of debt financing costs and non-usage facility fees, on our outstanding debt decreased to 3.6% for the nine months ended June 30, 2020 from 4.2% for the nine months ended June 30, 2019 primarily due to a lower average LIBOR.
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Management Fee

The base management fee increased as a result of a sequential increase in average adjusted gross assets from the three and nine months ended June 30, 2019 to the three and nine months ended June 30, 2020.

Incentive Fees

The incentive fee payable under the Investment Advisory Agreement and the Prior Investment Advisory Agreement, as applicable, consists of two parts: (1) the income component, or the Income Incentive Fee, and (2) the capital gains component, or the Capital Gain Incentive Fee. The Income Incentive Fee decreased by $0.4 million from the three months ended June 30, 2019 to the three months ended June 30, 2020 primarily as a result of a lower rate of return on the value of our net assets driven by a decrease in LIBOR. The Income Incentive Fee increased by $3.1 million from nine months ended June 30, 2019 to the nine months ended June 30, 2020 primarily as a result of an increase in Pre-Incentive Fee Net Investment Income (as defined in Note 3 of our consolidated financial statements), partially offset by a lower rate of return on the value of our net assets driven by a decrease in LIBOR. As we remain in the “catch-up” provision of the calculation of the Income Incentive Fee, the increase in net investment income causes a corresponding increase in the Income Incentive Fee until we are fully through the catch-up. For the three months ended June 30, 2020, while still not fully through the “catch-up” provision of the Income Incentive Fee calculation, the Income Incentive Fee as a percentage of the Pre-Incentive Fee Net Investment Income decreased to 8.1% compared to 15.3% for the three months ended June 30, 2019. For the nine months ended June 30, 2020, while still not fully through the “catch-up” provision of the Income Incentive Fee calculation, the Income Incentive Fee as a percentage of the Pre-Incentive Fee Net Investment Income decreased to 11.4% compared to 14.3% for the nine months ended June 30, 2019.

For each of the three and nine months ended June 30, 2020 and 2019, there was no Capital Gain Incentive Fee payable as calculated under the Investment Advisory agreement. In accordance with GAAP, we are required to include the aggregate unrealized capital appreciation on investments in the calculation and accrue a capital gain incentive fee as if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Advisory Agreement or Prior Investment Advisory Agreement. The capital gain incentive fee accrual calculated in accordance with GAAP as of the three and nine months ended June 30, 2020 was $0 and $0, respectively. The capital gain incentive fee accrual calculated in accordance with GAAP as of the three and nine months ended June 30, 2019 was less than $0.1 million and a reversal of $1.1 million, or $0.02 per share, respectively. Any payment due under the terms of the Investment Advisory Agreement or Prior Investment Advisory Agreement, as applicable, is calculated in arrears at the end of each calendar year. Through December 31, 2018, we paid $2.8 million of Capital Gain Incentive Fees calculated in accordance with the Prior Investment Advisory Agreement. No Capital Gain Incentive Fees as calculated under the Investment Advisory Agreement or the Prior Investment Advisory Agreement, as applicable, have been deemed payable since December 31, 2018.

For additional details on unrealized appreciation and depreciation of investments, refer to the “Net Realized and Unrealized Gains and Losses” section below.

Professional Fees, Administrative Service Fee, and General and Administrative Expenses

In total, professional fees, the administrative service fee, and general and administrative expenses increased by $1.5 million from the three months ended June 30, 2019 to the three months ended June 30, 2020 and increased by $4.0 million from the nine months ended June 30, 2019 to the nine months ended June 30, 2020. The increases were due to higher costs incurred to service a growing portfolio primarily as a result of the Merger. In general, we expect certain of our operating expenses, including professional fees, the administrative service fee, and other general and administrative expenses to decline as a percentage of our total assets during periods of growth other than as a result of a merger or other large acquisition and increase as a percentage of our total assets during periods of asset declines.

The Administrator pays for certain expenses incurred by us. These expenses are subsequently reimbursed in cash. Total expenses reimbursed by us to the Administrator for the three months ended June 30, 2020 and 2019 were $0.9
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million and $0.3 million, respectively. Total expenses reimbursed by us to the Administrator for the nine months ended June 30, 2020 and 2019 were $4.1 million and $1.5 million, respectively.

As of June 30, 2020 and September 30, 2019, included in accounts payable and other liabilities were $2.2 million and $0.9 million, respectively, for expenses paid on behalf of us by the Administrator. As of September 30, 2019, also included in accounts payable and other liabilities was $0.8 million of expenses paid on behalf of GCIC by the Administrator, which were assumed in the Merger.

Net Realized and Unrealized Gains and Losses

The following table summarizes our net realized and unrealized gains (losses) for the periods presented:
For the three months ended June 30,VariancesFor the nine months ended June 30,Variance
  202020192020 vs. 2019202020192020 vs. 2019
  (In thousands)(In thousands)
Net realized gain (loss) on investments$(4,925) $(717) $(4,208) $(14,108) $(4,517) $(9,591) 
Foreign currency transactions1  17  (16) 15  (22) 37  
Net realized gain (loss) on investment transactions
$(4,924) $(700) $(4,224) $(14,093) $(4,539) $(9,554) 
Unrealized appreciation on investments140,215  11,003  129,212  33,234  27,393  5,841  
Unrealized (depreciation) on investments(26,783) (10,317) (16,466) (162,591) (27,785) (134,806) 
Unrealized appreciation (depreciation) on investments in SLF and GCIC SLF(1)
—  —  —  3,843  1,183  2,660  
Unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies
(1,222) (192) (1,030) (746) (104) (642) 
Unrealized appreciation (depreciation) on forward currency contracts
(211) —  (211) 835  —  835  
Net change in unrealized appreciation (depreciation) on investment transactions
$111,999  $494  $111,505  $(125,425) $687  $(126,112) 

(1)Unrealized appreciation (depreciation) on investments in SLF and GCIC SLF includes our investments in LLC equity interests in SLF and GCIC SLF. The investment in GCIC SLF was acquired by us in the Merger and was not held during the three and nine months ended June 30, 2019. On January 1, 2020, SLF and GCIC SLF became our wholly-owned subsidiaries and the assets and liabilities of the Senior Loan Funds were consolidated into us.
For the three months ended June 30, 2020, we had a net realized loss on investments and foreign currency transactions of $4.9 million primarily due to a $4.2 million realized loss recognized as a result of the write-off of one of our portfolio companies. For the nine months ended June 30, 2020, we had a net realized loss of $14.1 million primarily attributable to the realized losses on multiple portfolio companies due to restructures and write-offs and $4.0 million in realized loss that resulted from the consolidation of SLF and GCIC SLF, partially offset by net realized gains from the sale of equity investments in multiple portfolio companies.

For the three months ended June 30, 2019, we had a net realized loss on investments and foreign currency transactions of $0.7 million primarily due to sale of equity investments in multiple portfolio companies. For the nine months ended June 30, 2019, we had a net realized loss on investments and foreign currency transactions of $4.5 million primarily due to realized losses recognized on the restructure of one portfolio company investment, realized losses on the sale of a few portfolio company investments, partially offset by the realized gains from the sale of a few portfolio company investments.

For the three months ended June 30, 2020, we had $140.2 million in unrealized appreciation on 232 portfolio company investments, which was offset by $26.8 million in unrealized depreciation on 40 portfolio company investments. For the nine months ended June 30, 2020, we had $33.2 million in unrealized appreciation on 103 portfolio company investments, which was offset by $162.6 million in unrealized depreciation on 167 portfolio company investments. Unrealized appreciation for the three months ended June 30, 2020 primarily resulted from better than expected performance of our portfolio companies and credit market conditions beginning to recover. Unrealized depreciation for the nine months ended June 30, 2020 primarily resulted from decreases in the fair value in the majority of our portfolio company investments due to the immediate adverse economic effects of the COVID-19 pandemic, the continuing uncertainty surrounding its long-term impact and increases in the spread between the yields realized on risk-free and higher risk securities.

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For the three months ended June 30, 2019, we had $11.0 million in unrealized appreciation on 134 portfolio company investments, which was offset by $10.3 million in unrealized depreciation on 199 portfolio company investments. For the nine months ended June 30, 2019, we had $27.4 million in unrealized appreciation on 176 portfolio company investments, which is offset by $27.8 million in unrealized depreciation on 197 portfolio company investments. Unrealized appreciation during the three and nine months ended June 30, 2019 resulted from an increase in fair value primarily due to the rise in market prices of portfolio company
investments and the reversal of the net unrealized depreciation associated with the sale or restructure of a few portfolio company investments. Unrealized depreciation resulted from the amortization of discounts, negative credit related adjustments that caused a reduction in fair value and the reversal of the net unrealized appreciation associated with the sale of portfolio company investments during the three and nine months ended June 30, 2019.

Liquidity and Capital Resources

For the nine months ended June 30, 2020, we experienced a net increase in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies of $35.6 million. During the period, cash provided by operating activities was $85.5 million, primarily as a result of the proceeds from principal payments and sales of portfolio investments of $533.6 million and net investment income of $99.7 million, partially offset by fundings of portfolio investments of $530.2 million and fundings of revolving loans of $20.4 million. Lastly, cash used in financing activities was $49.9 million, primarily driven by repayments of debt of $961.6 million, repayments on short-term borrowings of $65.0 million, distributions paid of $102.8 million, repurchases of common stock under the DRIP of $30.7 million, offset by borrowings on debt of $747.4 million, proceeds from short-term borrowings of $64.8 million and net proceeds from the rights offering of $300.4 million.

For the nine months ended June 30, 2019, we experienced a net increase in cash, cash equivalents, foreign currencies and restricted cash and cash equivalents of $65.1 million. During the period, cash used in operating activities was $80.4 million, primarily as a result of fundings of portfolio investments of $456.5 million, partially offset by the proceeds from principal payments and sales of portfolio investments of $323.5 million and net investment income of $59.3 million. Lastly, cash provided by financing activities was $145.4 million, primarily driven by borrowings on debt of $1.2 billion that were partially offset by repayments of debt of $999.2 million and distributions paid of $56.1 million.

As of June 30, 2020 and September 30, 2019, we had cash and cash equivalents of $29.3 million and $6.5 million, respectively. In addition, we had foreign currencies of $1.2 million and $0.1 million as of June 30, 2020 and September 30, 2019, respectively, restricted cash and cash equivalents of $87.6 million and $76.4 million as of June 30, 2020 and September 30, 2019, respectively, and restricted foreign currencies of $2.1 million and $1.3 million as of June 30, 2020 and September 30, 2019, respectively. Cash and cash equivalents and foreign currencies are available to fund new investments, pay operating expenses and pay distributions. Restricted cash and cash equivalents and restricted foreign currencies can be used to pay principal and interest on and to fund new investments that meet the guidelines under our debt securitizations or credit facilities, as applicable.

This "Liquidity and Capital Resources" section should be read in conjunction with the "COVID-19 Developments" section above.

Revolving Debt Facilities

MS Credit Facility II - As of June 30, 2020 and September 30, 2019, we had $325.8 million and $259.9 million outstanding under the MS Credit Facility II (as defined in Note 7 of our consolidated financial statements), respectively. As of June 30, 2020, the MS Credit Facility II allowed Golub Capital BDC Funding II LLC, or Funding II, to borrow up to $400.0 million at any one time outstanding, subject to leverage and borrowing base restrictions. As of June 30, 2020 and September 30, 2019, subject to leverage and borrowing base restrictions, we had approximately $74.2 million and $40.1 million of remaining commitments, respectively, and $54.9 million and less than $1.0 million of availability, respectively, on the MS Credit Facility II.

In connection with entry into the MS Credit Facility II, on February 4, 2019, Golub Capital BDC Funding LLC, or Funding, repaid all $97.1 million of the debt outstanding on the Credit Facility (as defined in Note 7 of our consolidated financial statements). Following such repayment, the agreements governing the Credit Facility were terminated. Prior to termination, the Credit Facility allowed Funding to borrow up to $170.0 million at any one time outstanding, subject to leverage and borrowing base restrictions.
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WF Credit Facility - Effective September 16, 2019, we assumed, as a result of the Merger, the WF Credit Facility (as defined in Note 7 of our consolidated financial statements), which, as of June 30, 2020, allowed GCIC Funding LLC, or GCIC Funding, to borrow up to $300.0 million at any one time outstanding, subject to leverage and borrowing base restrictions. As of June 30, 2020 and September 30, 2019, we had outstanding debt under the WF Credit Facility of $214.4 million and $253.8 million, respectively. As of June 30, 2020 and September 30, 2019, subject to leverage and borrowing base restrictions, we had approximately $85.6 million and $46.2 million of remaining commitments, respectively, and $89.1 million and $0.5 million of availability, respectively, on the WF Credit Facility.

DB Credit Facility - Effective September 16, 2019, we assumed, as a result of the Merger, the DB Credit Facility (as defined in Note 7 of our consolidated financial statements), which as of June 30, 2020, allowed GCIC Funding II LLC, or GCIC Funding II, to borrow up to $250.0 million at any one time outstanding, subject to leverage and borrowing base restrictions. As of June 30, 2020 and September 30, 2019, we had outstanding debt under the DB Credit Facility of $150.3 million and $248.0 million, respectively. As of June 30, 2020 and September 30, 2019, subject to leverage and borrowing base restrictions, we had approximately $99.7 million and $2.0 million of remaining commitments, respectively, and $95.1 million and $0.1 million of availability, respectively, on the DB Credit Facility.

SLF Credit Facility - As of January 1, 2020, the date of our acquisition of the SLF LLC equity interests formerly held by RGA pursuant to the Purchase Agreement, we assumed the SLF Credit Facility (as defined in Note 7 of our consolidated financial statements). On June 29, 2020, we repaid the SLF Credit Facility in full and terminated the facility. Prior to the facility's termination, the reinvestment period of the SLF Credit Facility expired on August 29, 2018 and the maximum commitment was equal to advances outstanding.

GCIC Credit Facility - As of January 1, 2020, the date of our acquisition of the GCIC SLF LLC equity interests formerly held by Aurora pursuant to the Purchase Agreement, we assumed the GCIC SLF Credit Facility (as defined in Note 7 of our consolidated financial statements). On June 29, 2020, we repaid the GCIC SLF Credit Facility in full and terminated the facility. Prior to the facility's termination, the reinvestment period of the GCIC SLF Credit Facility expired on September 27, 2018 and the maximum commitment was equal to advances outstanding.

Adviser Revolver - On June 22, 2016, we entered into the Adviser Revolver (as defined in Note 7 of our consolidated financial statements), which, as amended, permitted us to borrow up to $100.0 million at any one time outstanding as of June 30, 2020. On October 28, 2019, we increased the borrowing capacity from $40.0 million to $100.0 million. We entered into the Adviser Revolver in order to have the ability to borrow funds on a short-term basis and have in the past repaid, and generally intend in the future to repay, borrowings under the Adviser Revolver within 30 to 45 days from which they are drawn. As of each of June 30, 2020 and September 30, 2019, we had no amounts outstanding on the Adviser Revolver.

Adviser Revolver II - Effective September 16, 2019, we assumed as a result of the Merger, Adviser Revolver II (as defined in Note 7 of our consolidated financial statements), which permitted us to borrow up to $40.0 million at any one time outstanding as of September 30, 2019. On October 28, 2019, in connection with the upsize to the Adviser Revolver, we terminated the Adviser Revolver II.

Debt Securitizations

2014 Debt Securitization - On June 5, 2014, we completed the 2014 Debt Securitization. On March 23, 2018, we amended the 2014 Debt Securitization to, among other things, refinance the notes issued by the 2014 Issuer, or the 2014 Notes, by redeeming the 2014 Notes then outstanding and issuing (a) new Class A-1-R 2014 Notes in an aggregate principal amount of $191.0 million that bear interest at a rate of three-month LIBOR plus 0.95%, (b) new Class A-2-R 2014 Notes in an aggregate principal amount of $20.0 million that bear interest at a rate of three-month LIBOR plus 0.95%, (c) new Class B-R 2014 Notes in an aggregate principal amount of $35.0 million that bear interest at a rate of three-month LIBOR plus 1.40%, and (d) new Class C-R 2014 Notes in an aggregate principal amount of $37.5 million that bear interest at a rate of three-month LIBOR plus 1.55%. The Class C-R 2014 Notes were retained by us, and we remain the sole owner of the equity of the 2014 Issuer.

The Class A-1-R, Class A-2-R and Class B-R 2014 Notes are included in the June 30, 2020 and September 30, 2019 Consolidated Statements of Financial Condition as our debt and the Class C-R 2014 Notes and LLC equity interests
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in the 2014 Issuer were eliminated in consolidation. As of June 30, 2020 and September 30, 2019, we had outstanding debt under the 2014 Debt Securitization of $80.5 million and $126.3 million, respectively.

2018 Debt Securitization - On November 16, 2018, we completed the 2018 Debt Securitization in which the 2018 Issuer issued an aggregate of $602.4 million of notes, or the 2018 Notes, including $327.0 million of AAA/AAA Class A 2018 Notes, which bear interest at the three-month LIBOR plus 1.48%; $61.2 million of AA Class B 2018 Notes, which bear interest at the three-month LIBOR plus 2.10%; $20.0 million of A Class C-1 2018 Notes, which bear interest at the three-month LIBOR plus 2.80%; $38.8 million of A Class C-2 2018 Notes, which bear interest at the three-month LIBOR plus 2.65%; $42.0 million of BBB- Class D 2018 Notes, which bear interest at the three-month LIBOR plus 2.95%; and $113.4 million of Subordinated 2018 Notes which do not bear interest. We indirectly retained all of the Class C-2, Class D and Subordinated 2018 Notes.

The Class A, Class B and Class C-1 2018 Notes are included in the June 30, 2020 and September 30, 2019 Consolidated Statements of Financial Condition as our debt and the Class C-2, Class D and Subordinated 2018 Notes were eliminated in consolidation. As of June 30, 2020 and September 30, 2019, we had outstanding debt under the 2018 Debt Securitization of $408.2 million and $408.2 million, respectively.

GCIC 2018 Debt Securitization - Effective September 16, 2019, we assumed as a result of the Merger, the GCIC 2018 Debt Securitization in which the GCIC 2018 Issuer issued an aggregate of $908.2 million of notes, or the GCIC 2018 Notes, including $490.0 million of AAA/AAA Class A-1 GCIC 2018 Notes, $38.5 million of AAA Class A-2 GCIC 2018 Notes, and $18.0 million of AA Class B-1 GCIC 2018 Notes. In partial consideration for the loans transferred to the GCIC 2018 Issuer as part of the GCIC 2018 Debt Securitization, GCIC indirectly retained, and we assumed in the Merger, all of the Class B-2, C and D GCIC 2018 Notes and the Subordinated GCIC 2018 Notes totaling $27.0 million, $95.0 million, $60.0 million, and $179.7 million, respectively. The Class A-1, Class A-2 and Class B-1 GCIC 2018 Notes are included in the June 30, 2020 and September 30, 2019 Consolidated Statements of Financial Condition as our debt. As of June 30, 2020 and September 30, 2019 the Class B-2, Class C and Class D GCIC 2018 Notes and the Subordinated GCIC 2018 Notes were eliminated in consolidation. As of June 30, 2020 and September 30, 2019, we had outstanding debt under the GCIC 2018 Debt Securitization of $541.9 million and $541.0 million, respectively.

SBA Debentures

Under present small business investment company, or SBIC, regulations, the maximum amount of debentures guaranteed by the U.S. Small Business Administration, or SBA, issued by multiple licensees under common management is $350.0 million and the maximum amount issued by a single SBIC licensee is $175.0 million. As of June 30, 2020, GC SBIC IV, L.P., or SBIC IV, GC SBIC V, L.P., or SBIC V, and GC SBIC VI, L.P., or SBIC VI, had $69.7 million, $151.8 million, and $66.0 million, respectively, of outstanding SBA-guaranteed debentures that mature between September 2021 and March 2030. As of September 30, 2019, SBIC IV, SBIC V and SBIC VI, had $90.0 million, $165.0 million and $32.0 million, respectively, of outstanding SBA-guaranteed debentures that mature between September 2021 and September 2029. The original amount of debentures committed to SBIC IV and SBIC V by the SBA were $150.0 million and $175.0 million, respectively. Through June 30, 2020, SBIC IV and SBIC V have repaid $80.3 million and $23.3 million of outstanding debentures, respectively, and these commitments have effectively been terminated. As of June 30, 2020 and September 30, 2019, SBIC VI had $29.0 million and $18.0 million, respectively, of undrawn debenture commitments, of which $29.0 and $18.0 million, respectively, were available to be drawn, subject to SBA regulatory requirements.

On May 15, 2020, we completed a transferable rights offering, pursuant to which we issued 33,451,902 shares of our common stock at a subscription price of $9.17 per share. Net proceeds after deducting the dealer manager fees and other offering expenses were approximately $300.4 million. The proceeds were used to repay outstanding debt on the MS Credit Facility II, the SLF Credit Facility and the GCIC SLF Credit Facility.

In August 2020, our board of directors reapproved a share repurchase program, or the Program, which allows us
to repurchase up to $150.0 million of our outstanding common stock on the open market at prices below the NAV per share as reported in our then most recently published consolidated financial statements. The Program is implemented at the discretion of management with shares to be purchased from time to time at prevailing market
prices, through open market transactions, including block transactions. We did not make any repurchases of our common stock during the nine months ended June 30, 2020 and 2019.

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As of June 30, 2020, in accordance with the 1940 Act, with certain limited exceptions, we were allowed to borrow amounts such that our asset coverage, as defined in the 1940 Act, is at least 150% after such borrowing. Prior to February 6, 2019, in accordance with the 1940 Act, with certain limited exceptions, we were allowed to borrow amounts such that our asset coverage, as defined in the 1940 Act, was at least 200% after such borrowing. We currently intend to continue to target a GAAP debt-to-equity ratio between 0.85x to 1.15x.

On September 13, 2011, we received exemptive relief from the SEC allowing us to modify the asset coverage requirement to exclude the SBA debentures from our asset coverage calculation. As such, our ratio of total consolidated assets to outstanding indebtedness may be less than 150%. This provides us with increased investment flexibility but also increases our risks related to leverage. As of June 30, 2020, our asset coverage for borrowed amounts was 235.8% (excluding the SBA debentures).

As of June 30, 2020 and September 30, 2019, we had outstanding commitments to fund investments, excluding our investments in SLF and GCIC SLF as of September 30, 2019, totaling $109.2 million and $261.6 million, respectively. As of June 30, 2020, total commitments of $109.2 million included $28.3 million of unfunded commitments on revolvers. There is no guarantee that these amounts will be funded to the borrowing party now or in the future. The unfunded commitments relate to loans with various maturity dates, but the entire amount was eligible for funding to the borrowers, subject to the terms of each loan’s respective credit agreement. As of June 30, 2020, we believe that we had sufficient assets and liquidity to adequately cover future obligations under our unfunded commitments based on historical rates of drawings upon unfunded commitments, cash and restricted cash balances that we maintain, availability under our Adviser Revolver and ongoing principal repayments on debt investments. In addition, we generally hold some syndicated loans in larger portfolio companies that are saleable over a relatively short period to generate cash.

Due to the interplay of the 1940 Act restrictions on principal and joint transactions and the U.S. risk retention rules adopted pursuant to Section 941 of Dodd-Frank, as a business development company, we sought and received no action relief from the SEC to ensure we could engage in CLO financings in which assets are transferred through GC Advisors.

Although we expect to fund the growth of our investment portfolio through the net proceeds from future securities offerings and future borrowings, to the extent permitted by the 1940 Act, we cannot assure you that our efforts to raise capital will be successful. In addition, from time to time, we can amend or refinance our leverage facilities and securitization financings, to the extent permitted by applicable law. In addition to capital not being available, it also may not be available on favorable terms. To the extent we are not able to raise capital on what we believe are favorable terms, we will focus on optimizing returns by investing capital generated from repayments into new investments we believe are attractive from a risk/reward perspective. Furthermore, to the extent we are not able to raise capital and are at or near our targeted leverage ratios, we expect to receive smaller allocations, if any, on new investment opportunities under GC Advisors’ allocation policy and have, in the past, received such smaller allocations under similar circumstances.


Portfolio Composition, Investment Activity and Yield

As of June 30, 2020 and September 30, 2019, we had investments in 254 and 241 portfolio companies, respectively, with a total fair value of $4.3 billion and $4.1 billion, respectively. As of September 30, 2019, we had investments in SLF and GCIC SLF with a total fair value of $123.6 million.

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The following table shows the asset mix of our new investment commitments for the three and nine months ended June 30, 2020 and 2019:

For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
  (In thousands)Percentage of
Commitments		(In thousands)Percentage of
Commitments		(In thousands)Percentage of
Commitments		(In thousands)Percentage of
Commitments
Senior secured$90  0.6 %$22,686  14.4%$67,548  14.9%$73,604  15.5%
One stop15,465  98.4  131,944  84.0381,680  84.1393,130  82.5
Second lien—  —  1,513  1.0—  —1,513  0.3
Subordinated debt—  —  ——138     0.0*23    0.0*
LLC equity interests in SLF(1)
—  —  ———  —1,750  0.4
Equity158  1.0  908  0.64,464  1.06,213  1.3
Total new investment commitments$15,713  100.0 %$157,051  100.0 %$453,830  100.0 %$476,233  100.0 %

* Represents an amount less than 0.1%
(1) SLF's proceeds from LLC equity interests were utilized by SLF to invest in senior secured loans.

Due to a significant drop in merger and acquisition activity as a result of the market conditions brought on by COVID-19, new commitments declined during the three months ended June 30, 2020.

For the three and nine months ended June 30, 2020, we had approximately $88.4 million and $533.6 million, respectively, in proceeds from principal payments and sales of portfolio investments.

For the three and nine months ended June 30, 2019, we had approximately $179.4 million and $323.5 million, respectively, in proceeds from principal payments and sales of portfolio investments.

The following table shows the principal, amortized cost and fair value of our portfolio of investments by asset class:
As of June 30, 2020(1)
As of September 30, 2019(2)
  PrincipalAmortized
Cost		Fair
Value		PrincipalAmortized
Cost		Fair
Value
  (In thousands)(In thousands)
Senior secured:            
Performing$617,515  $621,793  $591,254  $586,039  $597,033  $583,483  
Non-accrual(3)
38,533  27,808  13,198  15,749  8,573  5,857  
One stop:            
Performing3,595,141  3,624,999  3,479,600  3,502,213  3,548,330  3,466,310  
Non-accrual(3)
103,206  96,490  68,548  12,053  10,700  7,806  
Second lien:            
Performing20,418  20,670  20,418  19,473  19,745  19,473  
Non-accrual(3)
—  —  —  —  —  —  
Subordinated debt:            
Performing534  539  560  369  375  369  
Non-accrual(3)
—  —  —  —  —  —  
LLC equity interests in SLF and GCIC SLF(4)
N/A—  —  N/A127,487  123,644  
EquityN/A82,423  76,792  N/A79,527  85,990  
Total$4,375,347  $4,474,722  $4,250,370  $4,135,896  $4,391,770  $4,292,932  

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(1)As of June 30, 2020, $391.6 million and $351.9 million of our loans at amortized cost and fair value, respectively, included a feature permitting a portion of the interest due on such loan to be PIK interest.
(2)As of September 30, 2019, $218.8 million and $204.6 million of our loans at amortized cost and fair value, respectively, included a feature permitting a portion of the interest due on such loan to be PIK interest.
(3)We refer to a loan as non-accrual when we cease recognizing interest income on the loan because we have stopped pursuing repayment of the loan or, in certain circumstances, it is past due 90 days or more on principal and interest or our management has reasonable doubt that principal or interest will be collected. See “— Critical Accounting Policies — Revenue Recognition.”
(4)Proceeds from the LLC equity interests invested in SLF and GCIC SLF were utilized by SLF and GCIC SLF to invest in senior secured loans. On January 1, 2020, SLF and GCIC SLF became our wholly-owned subsidiaries and the assets and liabilities of the Senior Loan Funds were consolidated into us.
As of June 30, 2020, we had loans in ten portfolio companies on non-accrual status, and non-accrual investments as a percentage of total debt investments at cost and fair value were 2.8% and 2.0%, respectively.  As of September 30, 2019, we had loans in five portfolio companies on non-accrual status, and non-accrual investments as a percentage of total investments at cost and fair value were 0.5% and 0.3%, respectively. As of June 30, 2020 and September 30, 2019, the fair value of our debt investments as a percentage of the outstanding principal value was 95.4% and 98.7%, respectively.

The following table shows the weighted average rate, spread over LIBOR of floating rate and fees of investments originated and the weighted average rate of sales and payoffs of portfolio companies during the three and nine months ended June 30, 2020 and 2019:
For the three months ended June 30,For the nine months ended June 30,
  2020201920202019
Weighted average rate of new investment fundings7.5%8.1%7.3%8.1%
Weighted average spread over LIBOR of new floating rate investment fundings6.3%5.7%5.5%5.9%
Weighted average fees of new investment fundings0.4%1.2%1.3%1.3%
Weighted average rate of sales and payoffs of portfolio investments(1)
6.1%8.8%7.2%8.7%

(1)Excludes exits on investments on non-accrual status.

As of June 30, 2020, 97.3% and 97.4% of our debt portfolio at fair value and at amortized cost, respectively, had interest rate floors that limit the minimum applicable interest rates on such loans. As of September 30, 2019, 92.3% and 92.3% of our debt portfolio at fair value and at amortized cost, respectively, had interest rate floors that limit the minimum applicable interest rates on such loans.
As of June 30, 2020 and September 30, 2019, the portfolio median earnings before interest, taxes, depreciation and amortization, or EBITDA, for our portfolio companies (excluding, prior to their consolidation into our financial statements, SLF and GCIC SLF) was $32.8 million and $28.6 million, respectively. The portfolio median EBITDA is based on the most recently reported trailing twelve-month EBITDA received from the portfolio company.

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As part of the monitoring process, GC Advisors regularly assesses the risk profile of each of our 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 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 could 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 could 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.

For any investment rated 1, 2 or 3, GC Advisors will increase its monitoring intensity and prepare regular updates for the investment committee, summarizing current operating results and material impending events and suggesting recommended actions.

GC Advisors monitors and, when appropriate, changes the internal performance ratings assigned to each investment in our portfolio. In connection with our valuation process, GC Advisors and our board of directors review these internal performance ratings on a quarterly basis.

The following table shows the distribution of our investments on the 1 to 5 internal performance rating scale at fair value as of June 30, 2020 and September 30, 2019:
As of June 30, 2020As of September 30, 2019
Internal
Performance
Rating		Investments
at Fair Value
(In thousands)		Percentage of
Total
Investments		Investments
at Fair Value
(In thousands)		Percentage of
Total
Investments
5$46,375  1.1%$115,318  2.7%
43,184,929  74.93,787,809  88.2
3948,227  22.3337,358  7.9
270,218  1.752,434  1.2
1621  0.0*13  0.0*
Total$4,250,370  100.0%$4,292,932  100.0%


*Represents an amount less than 0.1%.

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Senior Loan Fund LLC

Through December 31, 2019, we co-invested with RGA, in senior secured loans through SLF. On January 1, 2020, we entered into the Purchase Agreement to purchase RGA's LLC equity interests in SLF. As of January 1, 2020, we owned 100% of SLF and the assets and liabilities of SLF were consolidated into us. Prior to our purchase of RGA's LLC equity interests in SLF, SLF was capitalized as transactions were completed and all portfolio and investment decisions in respect to SLF were required to be approved by the SLF investment committee consisting of two representatives of each of us and RGA (with unanimous approval required from (i) one representative of each of us and RGA or (ii) both representatives of each of us and RGA).

As of September 30, 2019, we and RGA owned 87.5% and 12.5%, respectively, of the LLC equity interests. Through December 31, 2019, SLF’s profits and losses were allocated to us and RGA in accordance with our respective ownership interests.

As of September 30, 2019, SLF had the following commitments from its members (in the aggregate):
As of September 30, 2019
  Committed
Funded(1)
  (In thousands)
LLC equity commitments
$200,000  $85,580  
Total$200,000  $85,580  

(1)Funded LLC equity commitments are presented net of return of capital distributions subject to recall.
Effective January 1, 2020, the commitments to SLF were canceled in conjunction with the Purchase Agreement.

SLF entered into the SLF Credit Facility, which allowed SLF II, as of September 30, 2019, to borrow up to $75.6 million at any one time outstanding, subject to leverage and borrowing base restrictions. The SLF Credit Facility bore interest at one-month LIBOR plus 2.05% per annum. Effective January 1, 2020, we assumed, as a result of the Purchase Agreement, the SLF Credit Facility.

As of September 30, 2019, SLF had total assets at fair value of $161.0 million. As of September 30, 2019, SLF had loans in two portfolio companies on non-accrual status with a fair value of $5.0 million. The portfolio companies in SLF were in industries and geographies similar to those in which we invest directly. Additionally, as of September 30, 2019, SLF had commitments to fund various undrawn revolving credit and delayed draw loans to its portfolio companies totaling $3.4 million.

Below is a summary of SLF’s portfolio, followed by a listing of the individual investments in SLF’s portfolio as of September 30, 2019:

As of September 30, 2019
  (Dollars in thousands)
Senior secured loans(1)
$154,254  
Weighted average current interest rate on senior secured loans(2)
7.4 %
Number of borrowers in SLF27  
Largest portfolio company investment(1)
$12,654  
Total of five largest portfolio company investments(1)
$54,268  

(1)At principal amount.
(2)Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at principal amount.
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SLF Investment Portfolio as of September 30, 2019
Portfolio CompanyBusiness DescriptionSecurity TypeMaturity
Date
Current
Interest
Rate(1)
Principal ($) /
Shares(2)
Fair
Value(3)
(Dollars in thousands)
1A Smart Start LLC(4)
 Electronic Equipment, Instruments & Components Senior loan02/2022 6.5%$2,961  $2,961  
Advanced Pain Management Holdings, Inc.(4)(5)
 Health Care Providers & Services Senior loan12/2019 7.1 6,172  3,703  
Advanced Pain Management Holdings, Inc.(4)(5)
 Health Care Providers & Services Senior loan12/2019 7.1 422  253  
Advanced Pain Management Holdings, Inc.(4)(5)(7)
 Health Care Providers & Services Senior loan12/2019 7.1 193  (8) 
Advanced Pain Management Holdings, Inc.(4)(5)
 Health Care Providers & Services Senior loan12/2019 10.6 2,139  4  
Boot Barn, Inc.(4)
 Specialty Retail Senior loan06/2023 6.6 6,022  6,022  
Brandmuscle, Inc. Professional Services Senior loan12/2021 6.9 4,418  4,415  
Brandmuscle, Inc. Professional Services Senior loan12/2021 
N/A(6)
 —  —  
Captain D's, LLC(4)
 Food & Staples Retailing Senior loan12/2023 6.5 2,433  2,433  
Captain D's, LLC(4)
 Food & Staples Retailing Senior loan12/2023 7.5 17  17  
CLP Healthcare Services, Inc. Health Care Providers & Services Senior loan12/2020 7.4 8,415  8,415  
CLP Healthcare Services, Inc. Health Care Providers & Services Senior loan12/2020 7.4 4,239  4,239  
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan10/2021 7.5 2,392  2,392  
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan10/2021 7.5 1,203  1,203  
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan10/2021 7.5 58  58  
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan10/2021 7.5 40  40  
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan10/2021 
N/A(6)
 —  —  
DISA Holdings Acquisition Subsidiary Corp.(4)
 Professional Services Senior loan06/2022 7.1 4,773  4,773  
DISA Holdings Acquisition Subsidiary Corp.(4)
 Professional Services Senior loan06/2022 6.0 53  53  
Flexan, LLC Health Care Equipment & Supplies Senior loan02/2020 7.9 5,905  5,905  
Flexan, LLC Health Care Equipment & Supplies Senior loan02/2020 7.9 1,640  1,640  
Flexan, LLC(4)
 Health Care Equipment & Supplies Senior loan02/2020 9.5 431  431  
Gamma Technologies, LLC(4)
 IT Services Senior loan06/2024 7.3 10,084  10,084  
III US Holdings, LLC Software Senior loan09/2022 8.1 4,288  4,288  
Jensen Hughes, Inc. Building Products Senior loan03/2024 6.6 2,276  2,276  
Jensen Hughes, Inc. Building Products Senior loan03/2024 6.6 118  118  
Jensen Hughes, Inc. Building Products Senior loan03/2024 6.6 63  63  
Joerns Healthcare, LLC(4)
 Health Care Equipment & Supplies Senior loan08/2024 8.2 1,286  1,286  
Joerns Healthcare, LLC(4)
 Health Care Equipment & Supplies Senior loan08/2024 8.2 1,338  1,338  
Mediaocean LLC Software Senior loan08/2020 
N/A(6)
 —  —  
Paradigm DKD Group, LLC(4)(5)
 Consumer Finance Senior loan05/2022 8.4 1,480  1,094  
Paradigm DKD Group, LLC(4)(5)(7)
 Consumer Finance Senior loan05/2022 8.4 (16) (59) 
Pasternack Enterprises, Inc. and Fairview Microwave, Inc(4)
 Electronic Equipment, Instruments & Components Senior loan07/2025 6.0 5,264  5,264  
Polk Acquisition Corp.(4)
 Auto Components Senior loan06/2022 7.3 4,465  4,376  
Polk Acquisition Corp.(4)
 Auto Components Senior loan06/2022 7.3 60  58  
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SLF Investment Portfolio as of September 30, 2019 - (continued)
Portfolio CompanyBusiness DescriptionSecurity TypeMaturity
Date
Current
Interest
Rate(1)
Principal ($) /
Shares(2)
Fair
Value(3)
(Dollars in thousands)
Polk Acquisition Corp. Auto Components Senior loan06/2022 7.3%$52  $51  
Pyramid Healthcare, Inc.(4)
 Health Care Providers & Services Senior loan08/2020 8.8 10,047  10,047  
Pyramid Healthcare, Inc. Health Care Providers & Services Senior loan08/2020 9.2 257  257  
Pyramid Healthcare, Inc. Health Care Providers & Services Senior loan08/2020 8.8 147  147  
Pyramid Healthcare, Inc. Health Care Providers & Services Senior loan08/2020 8.8 99  99  
RSC Acquisition, Inc.(4)
 Insurance Senior loan11/2022 6.4 3,785  3,785  
RSC Acquisition, Inc.(4)
 Insurance Senior loan11/2021 
N/A(6)
 —  —  
Rubio's Restaurants, Inc (4)
 Food & Staples Retailing Senior loan10/2019 9.1 4,890  4,890  
Sage Dental Management, LLC  Health Care Providers & Services Senior loan12/2020 7.35% cash/1.00% PIK 4,341  3,907  
Sage Dental Management, LLC  Health Care Providers & Services Senior loan12/2020 8.4 70  62  
Sage Dental Management, LLC  Health Care Providers & Services Senior loan12/2020 8.4 63  57  
Sage Dental Management, LLC  Health Care Providers & Services Senior loan12/2020 8.4 45  40  
SEI, Inc.(4)
 IT Services Senior loan07/2023 6.8 11,004  11,004  
SEI, Inc. IT Services Senior loan07/2023 
N/A(6)
 —  —  
Self Esteem Brands, LLC (4)
 Hotels, Restaurants & Leisure Senior loan02/2022 6.3 9,561  9,561  
Self Esteem Brands, LLC (4)
 Hotels, Restaurants & Leisure Senior loan02/2022 8.3 415  415  
Teasdale Quality Foods, Inc. Food Products Senior loan10/2020 7.9 4,190  3,771  
Teasdale Quality Foods, Inc. Food Products Senior loan10/2020 7.9 3,285  2,956  
Teasdale Quality Foods, Inc. Food Products Senior loan10/2020 7.9 567  511  
Teasdale Quality Foods, Inc.(4)
 Food Products Senior loan10/2020 7.9 424  382  
Teasdale Quality Foods, Inc. Food Products Senior loan10/2020 7.9 210  189  
Upstream Intermediate, LLC Health Care Equipment & Supplies Senior loan01/2024 6.0 2,796  2,796  
WHCG Management, LLC (4)
 Health Care Providers & Services Senior loan03/2023 8.1 7,820  7,820  
WIRB-Copernicus Group, Inc.(4)
 Health Care Providers & Services Senior loan08/2022 6.4 5,554  5,554  
Total senior loan investments$154,254  $147,436  
Paradigm DKD Group, LLC(4)(8)(9)
 Buildings and Real Estate LLC units N/A N/A 170  $62  
Paradigm DKD Group, LLC(4)(8)(9)
 Buildings and Real Estate LLC units N/A N/A 963  —  
Paradigm DKD Group, LLC(4)(8)(9)
Buildings and Real Estate LLC units N/A N/A 34  —  
Joerns Healthcare, LLC(4)(8)(9)
 Healthcare, Education and Childcare Common Stock N/A N/A 309  3,017  
W3 Co.(8)(9)
Oil and GasLLC unitsN/AN/A3  1,526  
W3 Co.(8)(9)
Oil and GasPreferred stockN/AN/A—  218  
Total equity investments$4,823  
             Total investments$154,254  $152,259  
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(1)Represents the weighted average annual current interest rate as of September 30, 2019. All interest rates are payable in cash, except where PIK is shown.
(2)The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.
(3)Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in our board of directors' valuation process described elsewhere herein.
(4)We also held a portion of the senior secured loan in this portfolio company as of September 30, 2019.
(5)Loan was on non-accrual status as of September 30, 2019. As such, no interest is being earned on this investment.
(6)The entire commitment was unfunded as of September 30, 2019. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.
(7)The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par.
(8)Equity investment received as a result of the portfolio company's debt restructuring.
(9)Non-income producing.

As of September 30, 2019, we had commited to fund $175.0 million of LLC equity interest subscriptions to SLF. As of September 30, 2019, $74.9 million of our LLC equity interest commitment to SLF had been called and contributed, net of return of capital distributions subject to recall. Immediately prior to the Purchase Agreement, $70.5 million of the Company's LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall. Prior to the Purchase Agreement, for the three months ended December 31, 2019, we did not receive dividend income from the LLC equity interests in SLF. For the three and nine months ended June 30, 2019, we did not receive dividend income from the LLC equity interests in SLF.
For the three months ended December 31, 2019, we earned an annualized total return on our weighted average capital invested in SLF of 2.43%. For the three and nine months ended June 30, 2019, we earned an annualized total return on our weighted average capital invested in SLF of 6.3% and 3.4%, respectively. The annualized total return on weighted average capital invested is calculated by dividing total income earned on our investments in SLF by the combined daily average of our investments in the NAV of the SLF LLC equity interests.

Below is certain summarized financial information for SLF as of September 30, 2019, the three and nine months ended June 30, 2019, and the three months ended December 31, 2019:

As of September 30, 2019
  (In thousands)
Selected Balance Sheet Information, at fair value  
Investments, at fair value$152,259  
Cash and other assets8,759  
Total assets$161,018  
Senior credit facility$75,581  
Other liabilities424  
Total liabilities76,005  
Members’ equity85,013  
Total liabilities and members' equity$161,018  

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Three months ended December 31, Three months ended June 30,Nine months ended June 30,
  201920192019
  (In thousands)
Selected Statement of Operations Information:    
Interest income$2,800  $3,217  $10,392  
Fee income—  —  9  
Total investment income2,800  3,217  10,401  
Interest and other debt financing expenses634  980  3,300  
Administrative service fee61  65  209  
Other expenses(15) 23  72  
Total expenses680  1,068  3,581  
Net investment income2,120  2,149  6,820  
Net realized gains (losses) on investments—  —  (1,315) 
Net change in unrealized appreciation (depreciation) on investments(1,603) (2,149) (4,153) 
Net increase (decrease) in members' equity$517  $—  $1,352  


GCIC Senior Loan Fund LLC:

Following the acquisition of GCIC SLF in the Merger on September 16, 2019 and through December 31, 2019, we co-invested with Aurora in senior secured loans through GCIC SLF. On January 1, 2020, we entered into the Purchase Agreement to purchase Aurora's LLC equity interests in GCIC SLF. As of January 1, 2020, we owned 100% of GCIC SLF and the assets and liabilities of GCIC SLF were consolidated into our financial statements and notes thereto for periods ending on or after January 1, 2020. Prior to our purchase of Aurora's LLC equity interests in GCIC SLF, GCIC SLF was capitalized as transactions were completed and all portfolio and investment decisions in respect of GCIC SLF were approved by the GCIC SLF investment committee consisting of two representatives of each of us and Aurora (with unanimous approval required from (i) one representative of each of us and Aurora or (ii) both representatives of each of us and Aurora).

As of September 30, 2019, we and Aurora owned 87.5% and 12.5%, respectively, of the LLC equity interests of GCIC SLF. Through December 31, 2019, GCIC SLF’s profits and losses were allocated to us and Aurora in accordance with our respective ownership interests.
As of September 30, 2019, GCIC SLF had the following commitments from its members (in the aggregate):
As of September 30, 2019
  Committed
Funded (1)
  (In thousands)
LLC equity commitments$125,000  $55,264  
Total$125,000  $55,264  

(1)Funded LLC equity commitments are presented net of return of capital distributions subject to recall.
Effective January 1, 2020, the commitments to GCIC SLF were canceled in conjunction with the Purchase Agreement.

GCIC SLF entered into the GCIC SLF Credit Facility, which as of September 30, 2019 allowed GCIC SLF II to borrow up to $59.6 million at any one time outstanding, subject to leverage and borrowing base restrictions, and which bore interest at one-month LIBOR plus 2.05%. Effective January 1, 2020, we assumed, as a result of the Purchase Agreement, the GCIC SLF Credit Facility.

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As of September 30, 2019, GCIC SLF had total assets at fair value of $116.2 million. As of September 30, 2019, GCIC SLF did not have any investments on non-accrual status. The portfolio companies in GCIC SLF are in industries and geographies similar to those in which we invest directly. Additionally, as of September 30, 2019, GCIC SLF had commitments to fund various undrawn revolvers and delayed draw investments to its portfolio companies totaling $7.0 million.

Below is a summary of GCIC SLF’s portfolio, followed by a listing of the individual investments in GCIC SLF’s portfolio as of September 30, 2019:
September 30, 2019
  (Dollars in thousands)
Senior secured loans (1)
$112,864  
Weighted average current interest rate on senior secured loans (2)
7.2 %
Number of borrowers in GCIC SLF28  
Largest portfolio company investment (1)
$8,464  
Total of five largest portfolio company investments (1)
$34,273  

(1)At principal amount.
(2)Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at principal amount.



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GCIC SLF Investment Portfolio as of September 30, 2019
Portfolio CompanyBusiness DescriptionSecurity TypeMaturity
Date
Current
Interest
Rate(1)
Principal ($)
Fair
Value(2)
(Dollars in thousands)
1A Smart Start LLC(3)
 Electronic Equipment, Instruments & Components Senior loan 02/2022 6.5  %$1,910  $1,910  
Boot Barn, Inc.(3)
 Specialty Retail Senior loan 06/2023 6.6   3,159  3,159  
Brandmuscle, Inc.(3)
 Professional Services Senior loan 12/2021 
N/A(4)
 —  —  
Brandmuscle, Inc.(3)
 Professional Services Senior loan 12/2021 6.9   3,800  3,797  
Captain D's, LLC(3)
 Food & Staples Retailing Senior loan 12/2023 7.5   33  33  
Captain D's, LLC(3)
 Food & Staples Retailing Senior loan 12/2023 6.5   5,792  5,792  
CLP Healthcare Services, Inc.(3)
 Health Care Providers & Services Senior loan 12/2020 7.4   2,007  2,007  
CLP Healthcare Services, Inc.(3)
 Health Care Providers & Services Senior loan 12/2020 7.4   1,011  1,011  
Community Veterinary Partners, LLC(3)
 Health Care Providers & Services Senior loan 10/2021 
N/A(4)
 —  —  
Community Veterinary Partners, LLC(3)
 Health Care Providers & Services Senior loan 10/2021 7.5   2,053  2,053  
Community Veterinary Partners, LLC(3)
 Health Care Providers & Services Senior loan 10/2021 7.5   1,032  1,032  
Community Veterinary Partners, LLC(3)
 Health Care Providers & Services Senior loan 10/2021 7.5   40  40  
Community Veterinary Partners, LLC(3)
 Health Care Providers & Services Senior loan 10/2021 7.5   58  58  
Elite Sportswear, L.P.(3)
 Textiles, Apparel & Luxury Goods Senior loan 12/2021 8.5   121  99  
Elite Sportswear, L.P.(3)
 Textiles, Apparel & Luxury Goods Senior loan 12/2021 8.4   1,128  1,061  
Elite Sportswear, L.P.(3)
 Textiles, Apparel & Luxury Goods Senior loan 12/2021 8.4   581  546  
Elite Sportswear, L.P.(3)
 Textiles, Apparel & Luxury Goods Senior loan 12/2021 8.4   88  83  
Elite Sportswear, L.P.(3)
 Textiles, Apparel & Luxury Goods Senior loan 12/2021 8.4   2,806  2,638  
Elite Sportswear, L.P.(3)
 Textiles, Apparel & Luxury Goods Senior loan 12/2021 8.5   7  6  
Elite Sportswear, L.P.(3)
 Textiles, Apparel & Luxury Goods Senior loan 12/2021 8.4   84  79  
Elite Sportswear, L.P.(3)
 Textiles, Apparel & Luxury Goods Senior loan 12/2021 8.4   198  186  
Flexan, LLC(3)
 Health Care Equipment & Supplies Senior loan 02/2020 9.5   192  192  
Flexan, LLC(3)
 Health Care Equipment & Supplies Senior loan 02/2020 7.9   2,635  2,635  
Flexan, LLC(3)
 Health Care Equipment & Supplies Senior loan 02/2020 7.9   732  732  
G & H Wire Company, Inc(3)
 Health Care Equipment & Supplies Senior loan 09/2023 7.8   5,284  5,284  
Gamma Technologies, LLC(3)
 IT Services Senior loan 06/2024 7.3   4,334  4,334  
III US Holdings, LLC(3)
 Software Senior loan 09/2022 8.1   4,253  4,253  
Jensen Hughes, Inc.(3)
 Building Products Senior loan 03/2024 6.6   1,958  1,958  
Jensen Hughes, Inc.(3)
 Building Products Senior loan 03/2024 6.6   102  102  
Jensen Hughes, Inc.(3)
 Building Products Senior loan 03/2024 6.6   54  54  
Mediaocean LLC(3)
 Software Senior loan 08/2020 
N/A(4)
 —  —  
Mills Fleet Farm Group LLC(3)
 Multiline Retail Senior loan 10/2024 8.3   5,955  5,657  
NBC Intermediate, LLC (3)
 Food & Staples Retailing Senior loan 09/2023 
N/A(4)
 —  —  
NBC Intermediate, LLC (3)
 Food & Staples Retailing Senior loan 09/2023 6.5   2,565  2,565  
Pasternack Enterprises, Inc. and Fairview Microwave, Inc(3)
 Electronic Equipment, Instruments & Components Senior loan 07/2025 6.0   4,913  4,913  
Polk Acquisition Corp.(3)
 Auto Components Senior loan 06/2022 7.3   8,125  7,962  
Polk Acquisition Corp.(3)
 Auto Components Senior loan 06/2022 7.3   60  58  
Polk Acquisition Corp.(3)
 Auto Components Senior loan 06/2022 7.3   52  51  
Pyramid Healthcare, Inc.(3)
 Health Care Providers & Services Senior loan 08/2020 9.2   68  68  
Pyramid Healthcare, Inc.(3)
 Health Care Providers & Services Senior loan 08/2020 8.8   2,426  2,426  
Pyramid Healthcare, Inc.(3)
 Health Care Providers & Services Senior loan 08/2020 8.8   147  147  
Pyramid Healthcare, Inc.(3)
 Health Care Providers & Services Senior loan 08/2020 8.8   367  367  
Reladyne, Inc.(3)
 Construction & Engineering Senior loan 07/2022 7.3   5,909  5,909  
Reladyne, Inc.(3)
 Construction & Engineering Senior loan 07/2022 7.3   621  621  
Reladyne, Inc.(3)
 Construction & Engineering Senior loan 07/2022 7.3   1,152  1,152  
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GCIC SLF Investment Portfolio as of September 30, 2019 - (continued)
Portfolio CompanyBusiness DescriptionSecurity TypeMaturity
Date
Current
Interest
Rate(1)
Principal ($)
Fair
Value(2)
(Dollars in thousands)
Reladyne, Inc.(3)
 Construction & Engineering Senior loan 07/2022 7.3  %$537  $537  
Reladyne, Inc.(3)
 Construction & Engineering Senior loan 07/2022 7.3   245  245  
RSC Acquisition, Inc.(3)
 Insurance Senior loan 11/2021 
N/A(4)
 —  —  
RSC Acquisition, Inc.(3)
 Insurance Senior loan 11/2022 6.4   3,255  3,255  
Rubio's Restaurants, Inc(3)
 Food & Staples Retailing Senior loan 10/2019 9.1   1,641  1,641  
SEI, Inc.(3)
 IT Services Senior loan 07/2023 6.8   4,154  4,154  
SEI, Inc.(3)
 IT Services Senior loan 07/2023 
N/A(4)
 —  —  
Self Esteem Brands, LLC(3)
 Hotels, Restaurants & Leisure Senior loan 02/2022 6.3   5,445  5,445  
Self Esteem Brands, LLC(3)
 Hotels, Restaurants & Leisure Senior loan 02/2022 8.3   498  498  
Summit Behavioral Healthcare, LLC(3)
 Health Care Providers & Services Senior loan 10/2023 6.9   100  94  
Summit Behavioral Healthcare, LLC(3)
 Health Care Providers & Services Senior loan 10/2023 6.9   5,895  5,600  
Summit Behavioral Healthcare, LLC(3)
 Health Care Providers & Services Senior loan 10/2023 6.9   290  276  
Teasdale Quality Foods, Inc.(3)
 Food Products Senior loan 10/2020 7.9   1,009  908  
Teasdale Quality Foods, Inc.(3)
 Food Products Senior loan 10/2020 7.9   137  123  
Teasdale Quality Foods, Inc.(3)
 Food Products Senior loan 10/2020 7.9   51  46  
Teasdale Quality Foods, Inc.(3)
 Food Products Senior loan 10/2020 7.9   791  712  
Upstream Intermediate, LLC(3)
 Health Care Equipment & Supplies Senior loan 01/2024 6.0   3,532  3,532  
WHCG Management, LLC(3)
 Health Care Providers & Services Senior loan 03/2023 8.1   2,158  2,158  
WHCG Management, LLC(3)  Health Care Providers & Services Senior loan 03/2023 
N/A(4)
 —  —  
WIRB-Copernicus Group, Inc.(3)
 Health Care Providers & Services Senior loan 08/2022 6.4   5,314  5,314  
Total investments$112,864  $111,568  

(1)Represents the weighted average annual current interest rate as of September 30, 2019. All interest rates are payable in cash.
(2)Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in our board of directors' valuation process described elsewhere herein.
(3)We also hold a portion of the first lien senior secured loan in this portfolio company.
(4)The entire commitment was unfunded as of September 30, 2019. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.

As of September 30, 2019, we had committed to fund $109.4 million of LLC equity interest subscriptions to GCIC SLF. As of September 30, 2019, $48.4 million of our LLC equity interest subscriptions to GCIC SLF had been called and contributed, net of return of capital distributions subject to recall. Immediately prior to the Purchase Agreement, $48.4 million of our LLC equity interest subscription to GCIC SLF had been called and contributed, net of return of capital distributions subject to recall. For the three months ended December 31, 2019, we received $1.9 million in dividend income from the GCIC SLF LLC equity interests.

For the three months ended December 31, 2019, we earned an annualized total return on our weighted average
capital invested in SLF of 10.1%. The annualized total return on weighted average capital invested was calculated by
dividing total income earned on our investments in GCIC SLF by the combined daily average of our investments in
the NAV of the GCIC SLF LLC equity interests.

See below for certain summarized financial information for GCIC SLF as of September 30, 2019 and for the three months ended December 31, 2019:
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  As of September 30, 2019
  (In thousands)
Selected Balance Sheet Information:
Investments, at fair value$111,568  
Cash and other assets4,627  
Total assets$116,195  
Senior credit facility$59,559  
Other liabilities341  
Total liabilities59,900  
Members’ equity56,295  
Total liabilities and members' equity$116,195  

Three months ended December 31, 2019
  (In thousands)
Selected Statement of Operations Information:
Interest income$2,081  
Total investment income2,081  
Interest and other debt financing expense512  
Administrative service fee45  
Other expenses(24) 
Total expenses533  
Net investment income1,548  
Net change in unrealized appreciation (depreciation) on investments(108) 
Net increase in members' equity$1,440  


Contractual Obligations and Off-Balance Sheet Arrangements

A summary of our significant contractual payment obligations as of June 30, 2020 is as follows:
Payments Due by Period (In thousands)
  TotalLess Than
1 Year		1 – 3 Years3 – 5 YearsMore Than
5 Years
2014 Debt Securitization$80,527  $—  $—  $—  $80,527  
2018 Debt Securitization408,200  —  —  —  408,200  
2018 GCIC Debt Securitization541,926  —  —  —  541,926  
SBA debentures287,450  —  69,700  35,500  182,250  
WF Credit Facility214,358  —  —  214,358  —  
MS Credit Facility II325,831  —  —  325,831  —  
DB Credit Facility150,280  —  —  150,280  —  
Unfunded commitments(1)
109,155  109,155  —  —  —  
Total contractual obligations$2,117,727  $109,155  $69,700  $725,969  $1,212,903  

(1)Unfunded commitments represent unfunded commitments to fund investments as of June 30, 2020 and includes $28.3 million of commitments on undrawn revolvers. These amounts may or may not be funded to the borrowing party now or in the future. The unfunded commitments relate to loans with various maturity dates, but we are showing this amount in the less than one year category as this entire amount was eligible for funding to the borrowers as of June 30, 2020, subject to the terms of each loan’s respective credit agreement.
We may become a party to financial instruments with off-balance sheet risk in the normal course of our business to meet the financial needs of our portfolio companies. These instruments include commitments to extend credit and
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involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of June 30, 2020, we had outstanding commitments to fund investments totaling $109.2 million.

We have certain contracts under which we have material future commitments. We have entered into the Investment Advisory Agreement with GC Advisors in accordance with the 1940 Act. Under the Investment Advisory Agreement, GC Advisors provides us with investment advisory and management services.

Under the Administration Agreement, the Administrator furnishes us with office facilities and equipment, provides us with clerical, bookkeeping and record keeping services at such facilities and provides us with other administrative services necessary to conduct our day-to-day operations. The Administrator also provides on our behalf managerial assistance to those portfolio companies to which we are required to offer to provide such assistance.

If any of the contractual obligations discussed above are terminated, our costs under any new agreements that we enter into may increase. In addition, we would likely incur significant time and expense in locating alternative parties to provide the services we receive under our Investment Advisory Agreement and our Administration Agreement. Any new investment advisory agreement would also be subject to approval by our stockholders.

Distributions

We intend to make quarterly distributions to our stockholders as determined by our board of directors. For additional details on distributions, see “Income taxes” in Note 2 to our consolidated financial statements.

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of our distributions from time to time. In addition, the asset coverage requirements applicable to us as a business development company under the 1940 Act could limit our ability to make distributions. If we do not distribute a certain percentage of our income annually, we will suffer adverse U.S. federal income tax consequences, including the possible loss of our ability to be subject to tax as a RIC. We cannot assure stockholders that they will receive any distributions.

Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations can differ from net investment income and realized gains recognized for financial reporting purposes. Differences are permanent or temporary. Permanent differences are reclassified within capital accounts in the financial statements to reflect their tax character. For example, permanent differences in classification result from the treatment of distributions paid from short-term gains as ordinary income dividends for tax purposes. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

To the extent our taxable earnings fall below the total amount of our distributions for any tax year, a portion of those distributions could be deemed a return of capital to our stockholders for U.S. federal income tax purposes. Thus, the source of a distribution to our stockholders could be the original capital invested by the stockholder rather than our income or gains. Stockholders should read any written disclosure accompanying a distribution payment carefully and should not assume that the source of any distribution is our ordinary income or gains.

We have adopted an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a distribution, our stockholders’ cash distributions will be automatically reinvested in additional shares of our common stock unless a stockholder specifically “opts out” of our dividend reinvestment plan. If a stockholder opts out, that stockholder will receive cash distributions. Although distributions paid in the form of additional shares of our common stock will generally be subject to U.S. federal, state and local taxes in the same manner as cash distributions, stockholders participating in our dividend reinvestment plan will not receive any corresponding cash distributions with which to pay any such applicable taxes.

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Related Party Transactions

We have entered into a number of business relationships with affiliated or related parties, including the following:

•We entered into the Investment Advisory Agreement with GC Advisors. Mr. Lawrence Golub, our chairman, is a manager of GC Advisors, and Mr. David Golub, our chief executive officer, is a manager of GC Advisors, and each of Messrs. Lawrence Golub and David Golub owns an indirect pecuniary interest in GC Advisors.

•Golub Capital LLC provides, and other affiliates of Golub Capital have historically provided, us with the office facilities and administrative services necessary to conduct day-to-day operations pursuant to our Administration Agreement.

•We have entered into a license agreement with Golub Capital LLC, pursuant to which Golub Capital LLC has granted us a non-exclusive, royalty-free license to use the name “Golub Capital.”

•Under a staffing agreement, or the Staffing Agreement, Golub Capital LLC has agreed to provide GC Advisors with the resources necessary to fulfill its obligations under the Investment Advisory Agreement. The Staffing Agreement provides that Golub Capital LLC will make available to GC Advisors experienced investment professionals and provide access to the senior investment personnel of Golub Capital LLC for purposes of evaluating, negotiating, structuring, closing and monitoring our investments. The Staffing Agreement also includes a commitment that the members of GC Advisors’ investment committee will serve in such capacity. Services under the Staffing Agreement are provided on a direct cost reimbursement basis. We are not a party to the Staffing Agreement.

•GC Advisors serves as collateral manager to the 2014 Issuer, the 2018 Issuer, and the GCIC 2018 Issuer under the 2014 Collateral Management Agreement, the 2018 Collateral Management Agreement, and the GCIC 2018 Collateral Management Agreement, respectively. Fees payable to GC Advisors for providing these services offset against the base management fee payable by us under the Investment Advisory Agreement.

•We have entered into the Adviser Revolver with GC Advisors in order to have the ability to borrow funds on a short-term basis.

•During the first two quarters of calendar year 2020, the Golub Capital Employee Grant Program Rabbi Trust, or the Trust, purchased approximately $11.3 million, or 1,194,407 shares, of our common stock for the purpose of awarding incentive compensation to employees of Golub Capital. During calendar year 2019, the Trust purchased approximately $47.4 million, or 2,609,558 shares, of our common stock, for the purpose of awarding incentive compensation to employees of Golub Capital.

•On September 16, 2019, we completed our acquisition of GCIC pursuant to the Merger Agreement.

•On January 1, 2020, we purchased the equity interests held by RGA and Aurora in the Senior Loans Funds pursuant to the Purchase Agreement.

•In the transferable rights offering completed on May 15, 2020, 3,191,448 shares were purchased by affiliates of GC Advisors.

GC Advisors also sponsors or manages, and expects in the future to sponsor or manage, other investment funds, accounts or investment vehicles (together referred to as “accounts”) that have investment mandates that are similar, in whole and in part, with ours. For example, GC Advisors presently serves as the investment adviser to Golub Capital BDC 3, Inc., an unlisted business development company that primarily focuses on investing in one stop and other senior secured loans. In addition, our officers and directors serve in similar capacity for Golub Capital BDC 3, Inc. If GC Advisors and its affiliates determine that an investment is appropriate for us and for Golub Capital BDC 3, Inc., and other accounts, depending on the availability of such investment and other appropriate factors, and pursuant to GC Advisors’ allocation policy, GC Advisors or its affiliates could determine that we should invest side-by-side with one or more other accounts. We do not intend to make any investments if they are not permitted by
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applicable law and interpretive positions of the SEC and its staff, or if they are inconsistent with GC Advisors’ allocation procedures.

In addition, we have adopted a formal code of ethics that governs the conduct of our and GC Advisors’ officers, directors and employees. Our officers and directors also remain subject to the duties imposed by both the 1940 Act and the General Corporation Law of the State of Delaware.

Critical Accounting Policies

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies.

Fair Value Measurements

We value investments for which market quotations are readily available at their market quotations. However, a readily available market value is not expected to exist for many of the investments in our portfolio, and we value these portfolio investments at fair value as determined in good faith by our board of directors under our valuation policy and process.

Valuation methods include comparisons of the portfolio companies to peer companies that are public, determination of the enterprise value of a portfolio company, discounted cash flow analysis and a market interest rate approach. The factors that are taken into account in fair value pricing investments include: available current market data, including relevant and applicable market trading and transaction comparables; applicable market yields and multiples; security covenants; call protection provisions; information rights; the nature and realizable value of any collateral; the portfolio company’s ability to make payments, its earnings and discounted cash flows and the markets in which it does business; comparisons of financial ratios of peer companies that are public; comparable merger and acquisition transactions; and the principal market and enterprise values. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we will consider the pricing indicated by the external event to corroborate the private equity valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the investments can differ significantly from the values that would have been used had a readily available market value existed for such investments and differ materially from values that are ultimately received or settled.

Our board of directors is ultimately and solely responsible for determining, in good faith, the fair value of investments that are not publicly traded, whose market prices are not readily available on a quarterly basis or any other situation where portfolio investments require a fair value determination.

With respect to investments for which market quotations are not readily available, our board of directors undertakes a multi-step valuation process each quarter, as described below:

Our quarterly valuation process begins with each portfolio company investment being initially valued by the investment professionals of GC Advisors responsible for credit monitoring. Preliminary valuation conclusions are then documented and discussed with our senior management and GC Advisors. The audit committee of our board of directors reviews these preliminary valuations. At least once annually the valuation for each portfolio investment, subject to a de minimis threshold, is reviewed by an independent valuation firm. The board of directors discusses valuations and determines the fair value of each investment in our portfolio in good faith.

Determination of fair values involves subjective judgments and estimates. Under current accounting standards, the notes to our consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our consolidated financial statements.

We follow ASC Topic 820 for measuring fair value. Fair value is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation
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models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the assets or liabilities or market and the assets’ or liabilities’ complexity. Our fair value analysis includes an analysis of the value of any unfunded loan commitments. Assets and liabilities are categorized for disclosure purposes based upon the level of judgment associated with the inputs used to measure their value. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation of the asset or liability as of the measurement date. The three levels are defined as follows:

Level 1: Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2: Inputs include quoted prices for similar assets or liabilities in active markets and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the assets or liabilities.
Level 3: Inputs include significant unobservable inputs for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value are based upon the best information available and may require significant management judgment or estimation.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and we consider factors specific to the asset or liability. We assess the levels of assets and liabilities at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfers. There were no transfers among Level 1, 2 and 3 of the fair value hierarchy for assets and liabilities during the three and nine months ended June 30, 2020 and 2019. The following section describes the valuation techniques used by us to measure different assets and liabilities at fair value and includes the level within the fair value hierarchy in which the assets and liabilities are categorized.

Valuation of Investments

Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by our board of directors, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of our board of directors to assist in the valuation of each portfolio investment without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process. This valuation process is conducted at the end of each fiscal quarter, with approximately 25% (based on the number of portfolio companies) of our valuations of debt and equity investments without readily available market quotations subject to review by an independent valuation firm. As of June 30, 2020 and September 30, 2019, with the exception of money market funds included in cash and cash equivalents and restricted cash and cash equivalents (Level 1 investments), forward currency contracts (Level 2 investments) and investments measured at fair value using the NAV, all investments were valued using Level 3 inputs of the fair value hierarchy.

When determining fair value of Level 3 debt and equity investments, we may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary method for determining enterprise value uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA. A portfolio company’s EBITDA may include pro-forma adjustments for items such as acquisitions, divestitures, or expense reductions. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired, we will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, we use a market interest rate yield analysis to determine fair value.

In addition, for certain debt investments, we may base our valuation on indicative bid and ask prices provided by an independent third party pricing service. Bid prices reflect the highest price that we and others may be willing to pay.
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Ask prices represent the lowest price that we and others may be willing to accept. We generally use the midpoint of the bid/ask range as our best estimate of fair value of such investment.

Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize significantly less than the value at which such investment had previously been recorded.

Our investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.

Valuation of Other Financial Assets and Liabilities

Fair value of our debt is estimated using Level 3 inputs by discounting remaining payments using comparable market rates or market quotes for similar instruments at the measurement date, if available.

Revenue Recognition:

Our revenue recognition policies are as follows:

Investments and Related Investment Income: Interest income is accrued based upon the outstanding principal amount and contractual interest terms of debt investments. Premiums, discounts, and origination fees are amortized or accreted into interest income over the life of the respective debt investment. For investments with contractual PIK interest, which represents contractual interest accrued and added to the principal balance that generally becomes due at maturity, we do not accrue PIK interest if the portfolio company valuation indicates that the PIK interest is not likely to be collectible. In addition, we may generate revenue in the form of amendment, structuring or due diligence fees, fees for providing managerial assistance, consulting fees and prepayment premiums on loans and record these fees as fee income when received. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts as interest income. We record prepayment premiums on loans as fee income. Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Distributions received from LLC and limited partnership, or LP, investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, we will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

We account for investment transactions on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the cost basis of investment, without regard to unrealized gains or losses previously recognized. We report changes in fair value of investments from the prior period that is measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments in our Consolidated Statements of Operations.

Non-accrual: Loans may be left on accrual status during the period we are pursuing repayment of the loan. Management reviews all loans that become past due 90 days or more on principal and interest or when there is reasonable doubt that principal or interest will be collected for possible placement on non-accrual status. We generally reverse accrued interest when a loan is placed on non-accrual. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. We restore non-accrual loans to accrual status when past due principal and interest is paid and, in our management’s judgment, are likely to remain current. The total fair value of our non-accrual loans was $81.7 million and $13.7 million as of June 30, 2020 and September 30, 2019, respectively.

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Income taxes: We have elected to be treated as a RIC under Subchapter M of the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. In order to be subject to tax as a RIC, we are required to meet certain source of income and asset diversification requirements, as well as timely distribute to our stockholders dividends for U.S. federal income tax purposes of an amount generally at least equal to 90% of investment company taxable income, as defined by the Code and determined without regard to any deduction for dividends paid, for each tax year. We have made and intend to continue to make the requisite distributions to our stockholders, which will generally relieve us from U.S. federal income taxes.

Depending on the level of taxable income earned in a tax year, we may choose to retain taxable income in excess of current year dividend distributions and would distribute such taxable income in the next tax year. We may then be required to incur a 4% excise tax on such income. To the extent that we determine that our estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, we accrue excise tax, if any, on estimated excess taxable income as taxable income is earned. For each of the three and nine months ended June 30, 2020 and 2019, we did not incur any U.S federal excise tax.

Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified within capital accounts in the financial statements to reflect their tax character. For example, permanent differences in classification may result from the treatment of distributions paid from short-term gains as ordinary income dividends for tax purposes. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are subject to financial market risks, including changes in interest rates. Many of the loans in our portfolio have floating interest rates, and we expect that our loans in the future may also have floating interest rates. These loans are usually based on a floating LIBOR and typically have interest rate reset provisions that adjust applicable interest rates under such loans to current market rates on a quarterly basis. The loans that are subject to the floating LIBOR are also subject to a minimum base rate, or floor, that we charge on our loans if the current market rates are below the respective floors. As of June 30, 2020 and September 30, 2019, the weighted average LIBOR floor on the loans subject to floating interest rates were 0.95% and 1.01%, respectively. The Class A-1-R, A-2-R and B-R 2014 Notes issued in connection with the refinancing of the 2014 Debt Securitization have floating rate interest provisions based on the three-month LIBOR that reset quarterly, as do the Class A, B and C-1 2018 Notes issued as part of the 2018 Debt Securitization and Class A-1 and B-1 GCIC 2018 Notes as issued as part of the GCIC 2018 Debt Securitization. The DB Credit Facility has an interest rate equal to three-month LIBOR. Finally, the MS Credit Facility II and the WF Credit Facility each have a floating interest rate provision primarily based on one-month LIBOR. We expect that other credit facilities into which we enter in the future may have floating interest rate provisions.

In connection with the COVID-19 pandemic, the U.S. Federal Reserve and other central banks have reduced certain interest rates and LIBOR has decreased. A prolonged reduction in interest rates will reduce our gross investment income and could result in a decrease in our net investment income if such decreases in LIBOR are not offset by a corresponding increase in the spread over LIBOR that we earn on any portfolio investments, a decrease in in our operating expenses, including with respect to our income incentive fee, or a decrease in the interest rate of our floating interest rate liabilities tied to LIBOR.

Assuming that the interim and unaudited Consolidated Statement of Financial Condition as of June 30, 2020 were to remain constant and that we took no actions to alter interest rate sensitivity as of such date, the following table shows the annualized impact of hypothetical base rate changes in interest rates.
Change in interest ratesIncrease (decrease) in
interest income		Increase (decrease) in
interest expense		Net increase
(decrease) in
investment income
(In thousands)
Down 25 basis points$(59) $(4,207) $4,148  
Up 50 basis points119  8,413  (8,294) 
Up 100 basis points11,991  16,826  (4,835) 
Up 150 basis points31,744  25,239  6,505  
Up 200 basis points51,569  33,652  17,917  

Although we believe that this analysis is indicative of our sensitivity to interest rate changes as of June 30, 2020, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments, including borrowings under the Debt Securitizations, the MS Credit Facility II, the DB Credit Facility, the WF Credit Facility, Adviser Revolver, or other borrowings, that could affect net increase in net assets resulting from operations, or net income. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis above.

We may in the future hedge against interest rate fluctuations by using standard hedging instruments such as interest rate swaps, futures, options and forward contracts to the limited extent permitted under the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to the investments in our portfolio with fixed interest rates.


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Item 4. Controls and Procedures.

As of June 30, 2020 (the end of the period covered by this report), management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Based on that evaluation, our management, including the chief executive officer and chief financial officer, concluded that, at the end of such period, our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in the Company’s periodic reports. There has not been any change in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

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Part II - Other Information

Item 1: Legal Proceedings.

We, GC Advisors and Golub Capital LLC may, from time to time, be involved in legal and regulatory proceedings arising out of our respective operations in the normal course of business or otherwise. While there can be no assurance of the ultimate disposition of any such proceedings, each of us, GC Advisors and Golub Capital LLC do not believe it is currently subject to any material legal proceedings.

Item 1A: Risk Factors.

There have been no material changes during the nine months ended June 30, 2020 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2019 except as set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.


Item 2: Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3: Defaults Upon Senior Securities.

None.

Item 4: Mine Safety Disclosures

None.

Item 5: Other Information.

None.
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Item 6: Exhibits.

EXHIBIT INDEX
   
Number Description
Fifth Amendment to Loan and Servicing Agreement, dated as of June 18, 2020, by and among Golub Capital BDC Funding II LLC, as the borrower, Golub Capital BDC., Inc., as the originator and as the servicer, Morgan Stanley Senior Funding, Inc., as the administrative agent; and Morgan Stanley Bank, N.A., as the lender (Incorporated by reference to Exhibit 10.1 to the Registrant's Form 8-K (File No. 814-00794), filed June 19, 2020).
 Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*
  Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*
 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

_________________
* Filed herewith
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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Golub Capital BDC, Inc.
Dated: August 7, 2020By/s/ David B. Golub
David B. Golub
Chief Executive Officer
(Principal Executive Officer)
Dated: August 7, 2020By/s/ Ross A. Teune
Ross A. Teune
Chief Financial Officer
(Principal Accounting and Financial Officer)

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