GBDC 10-Q Quarterly Report March 31, 2020 | Alphaminr
GOLUB CAPITAL BDC, Inc.
ALPHAMINR

GBDC 10-Q Quarter ended March 31, 2020

Balance Sheet
Cash Flow
Income Statement
Debt
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10-Q 1 gbdcfy2020q210-qtransi.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 March 31, 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)
Delaware 27-2326940
(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 class Trading Symbol Name of each exchange on which registered
Common Stock, par value $0.001 per share GBDC 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 May 11, 2020, the Registrant had 133,807,609 shares of common stock, $0.001 par value, outstanding.



Part I. Financial Information
Item 1. Financial Statements
Consolidated Statements of Financial Condition as of March 31, 2020 (unaudited) and September 30, 2019
Consolidated Statements of Operations for the three and six months ended March 31, 2020 (unaudited) and 2019 (unaudited)
Consolidated Statements of Changes in Net Assets for the three and six months ended March 31, 2020 (unaudited) and 2019 (unaudited)
Consolidated Statements of Cash Flows for the six months ended March 31, 2020 (unaudited) and 2019 (unaudited)
Consolidated Schedules of Investments as of March 31, 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)

March 31, 2020 September 30, 2019
(unaudited)
Assets
Investments, at fair value
Non-controlled/non-affiliate company investments $ 4,169,717 $ 4,156,713
Non-controlled affiliate company investments 22,984 12,575
Controlled affiliate company investments 17,514 123,644
Total investments, at fair value (amortized cost of $4,547,999 and $4,391,770, respectively) 4,210,215 4,292,932
Cash and cash equivalents 23,705 6,463
Foreign currencies (cost of $654 and $54, respectively) 654 54
Restricted cash and cash equivalents
92,736 76,370
Restricted foreign currencies (cost of $2,049 and $1,321, respectively) 2,049 1,321
Cash collateral held at broker for forward currency contracts 1,700 600
Interest receivable 14,886 16,790
Unrealized appreciation on forward currency contracts 931 —
Other assets 270 333
Total Assets $ 4,347,146 $ 4,394,863
Liabilities
Debt $ 2,362,678 $ 2,124,392
Less unamortized debt issuance costs 6,137 4,939
Debt less unamortized debt issuance costs 2,356,541 2,119,453
Unrealized depreciation on forward currency contracts — 115
Interest payable 13,082 13,380
Management and incentive fees payable 18,500 12,884
Accounts payable and other liabilities 3,035 25,970
Accrued trustee fees — 207
Total Liabilities 2,391,158 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 March 31, 2020 and September 30, 2019 — —
Common stock, par value $0.001 per share, 200,000,000 shares authorized, 133,807,609 and 132,658,200 shares issued and outstanding as of March 31, 2020 and September 30, 2019, respectively 134 133
Paid in capital in excess of par 2,330,839 2,310,610
Distributable earnings
(374,985) (87,889)
Total Net Assets 1,955,988 2,222,854
Total Liabilities and Total Net Assets $ 4,347,146 $ 4,394,863
Number of common shares outstanding 133,807,609 132,658,200
Net asset value per common share $ 14.62 $ 16.76

See Notes to Consolidated Financial Statements.
3
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 March 31, Six months ended March 31,
2020 2019 2020 2019
Investment income
From non-controlled/non-affiliate company investments:
Interest income $ 74,593 $ 41,475 $ 150,452 $ 80,152
Dividend income 146 19 180 58
Fee income 157 125 372 647
Total investment income from non-controlled/non-affiliate company investments 74,896 41,619 151,004 80,857
From non-controlled affiliate company investments:
Interest income 228 186 472 359
Total investment income from non-controlled affiliate company investments 228 186 472 359
From controlled affiliate company investments:
Interest income — — 350 —
Dividend income — — 1,905 —
Total investment income from controlled affiliate company investments — — 2,255 —
Total investment income 75,124 41,805 153,731 81,216
Expenses
Interest and other debt financing expenses 21,550 10,636 43,828 20,420
Base management fee 14,858 6,594 30,064 13,033
Incentive fee 3,847 3,066 9,751 5,049
Professional fees 1,045 666 1,984 1,254
Administrative service fee 1,446 663 2,848 1,362
General and administrative expenses 432 124 579 225
Total expenses 43,178 21,749 89,054 41,343
Net investment income 31,946 20,056 64,677 39,873
Net gain (loss) on investment transactions
Net realized gain (loss) from:
Non-controlled/non-affiliate company investments 235 (1,852) 2,891 (3,800)
Non-controlled affiliate company investments (8,038) — (8,038) —
Controlled affiliate company investments (4,036) — (4,036) —
Foreign currency transactions 169 (9) 14 (39)
Net realized gain (loss) on investment transactions (11,670) (1,861) (9,169) (3,839)
Net change in unrealized appreciation (depreciation) from:
Non-controlled/non-affiliate company investments (258,248) (1,060) (240,776) (799)
Non-controlled affiliate company investments 549 (361) 122 (279)
Controlled affiliate company investments 2,537 1,077 1,708 1,183
Translation of assets and liabilities in foreign currencies 3,626 (63) 476 88
Forward currency contracts 2,296 — 1,046 —
Net change in unrealized appreciation (depreciation) on investment transactions
(249,240) (407) (237,424) 193
Net gain (loss) on investment transactions (260,910) (2,268) (246,593) (3,646)
Net increase (decrease) in net assets resulting from operations $ (228,964) $ 17,788 $ (181,916) $ 36,227
Per Common Share Data
Basic and diluted earnings (loss) per common share $ (1.71) $ 0.29 $ (1.36) $ 0.60
Dividends and distributions declared per common share $ 0.33 $ 0.32 $ 0.79 $ 0.76
Basic and diluted weighted average common shares outstanding 133,807,609 60,429,580 133,242,326 60,301,709

See Notes to Consolidated Financial Statements.
4
TABLE OF CONTENTS
Golub Capital BDC, Inc. and Subsidiaries
Consolidated Statements of Changes in Net Assets (unaudited)
(In thousands, except share data)

Common Stock Paid in Capital in Excess of Par Distributable Earnings Total Net Assets
Shares Par Amount
Balance at September 30, 2018 60,165,454 $ 60 $ 949,547 $ 19,247 $ 968,854
Net increase in net assets resulting from operations:
Net investment income — — — 39,873 39,873
Net realized gain (loss) on investment transactions — — — (3,839) (3,839)
Net change in unrealized appreciation (depreciation) on investment transactions — — — 193 193
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan 421,949 1 6,961 — 6,962
Distributions from distributable earnings — — — (45,808) (45,808)
Total increase (decrease) for the six months ended March 31, 2019 421,949 1 6,961 (9,581) (2,619)
Balance at March 31, 2019 60,587,403 $ 61 $ 956,508 $ 9,666 $ 966,235
Balance at December 31, 2018 60,422,239 $ 60 $ 953,681 $ 11,213 $ 964,954
Net increase in net assets resulting from operations:
Net investment income — — — 20,056 20,056
Net realized gain (loss) on investment transactions — — — (1,861) (1,861)
Net change in unrealized appreciation (depreciation) on investment transactions — — — (407) (407)
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan 165,164 1 2,827 — 2,828
Distributions from distributable earnings — — — (19,335) (19,335)
Total increase (decrease) for the three months ended March 31, 2019 165,164 1 2,827 (1,547) 1,281
Balance at March 31, 2019 60,587,403 $ 61 $ 956,508 $ 9,666 $ 966,235
Balance at September 30, 2019 132,658,200 $ 133 $ 2,310,610 $ (87,889) $ 2,222,854
Net increase (decrease) in net assets resulting from operations:
Net investment income — — — 64,677 64,677
Net realized gain (loss) on investment transactions — — — (9,169) (9,169)
Net change in unrealized appreciation (depreciation) on investment transactions — — — (237,424) (237,424)
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan 1,149,409 1 20,229 — 20,230
Distributions from distributable earnings — — — (105,180) (105,180)
Total increase (decrease) for the six months ended March 31, 2020 1,149,409 1 20,229 (287,096) (266,866)
Balance at March 31, 2020 133,807,609 $ 134 $ 2,330,839 $ (374,985) $ 1,955,988
Balance at December 31, 2019 133,807,609 $ 134 $ 2,330,839 $ (101,864) $ 2,229,109
Net increase (decrease) in net assets resulting from operations:
Net investment income — — — 31,946 31,946
Net realized gain (loss) on investment transactions — — — (11,670) (11,670)
Net change in unrealized appreciation (depreciation) on investment transactions — — — (249,240) (249,240)
Distributions to stockholders:
Distributions from distributable earnings — — — (44,157) (44,157)
Total increase (decrease) for the three months ended March 31, 2020 — — — (273,121) (273,121)
Balance at March 31, 2020 133,807,609 $ 134 $ 2,330,839 $ (374,985) $ 1,955,988


See Notes to Consolidated Financial Statements.
5
TABLE OF CONTENTS

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

Six months ended March 31,
2020 2019
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations $ (181,916) $ 36,227
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 costs 1,304 1,136
Accretion of discounts and amortization of premiums 15,896 (3,930)
Net realized (gain) loss on investments 9,183 3,800
Net realized (gain) loss on foreign currency and other transactions (14) 39
Net change in unrealized (appreciation) depreciation on investments 238,946 (105)
Net change in unrealized (appreciation) depreciation on translation of assets and liabilities in foreign currencies (476) (88)
Net change in unrealized (appreciation) depreciation on forward currency contracts (1,046) —
Proceeds from (fundings of) revolving loans, net (31,054) (4,051)
Fundings of investments (498,841) (310,935)
Proceeds from principal payments and sales of portfolio investments 445,227 143,900
PIK interest (4,648) (851)
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 2,374 (754)
Cash collateral held at broker for forward currency contracts (1,100) —
Other assets 82 (685)
Interest payable (554) 5,716
Management and incentive fees payable 5,616 (2,654)
Accounts payable and other liabilities (23,423) 123
Accrued trustee fees (207) 4
Net cash (used in) provided by operating activities (19,707) (133,108)
Cash flows from financing activities
Borrowings on debt 695,561 1,070,586
Repayments of debt (553,438) (865,037)
Capitalized debt issuance costs (2,502) (3,140)
Proceeds from other short-term borrowings 64,769 21,719
Repayments on other short-term borrowings (65,017) (21,646)
Distributions paid (84,950) (38,846)
Net cash provided by (used in) financing activities 54,423 163,636
Net change in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies
34,716 30,528
Effect of foreign currency exchange rates 220 (83)
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
$ 119,144 $ 76,150
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 39,162 $ 13,568
Distributions declared during the period 105,180 45,808
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)

Supplemental disclosure of non-cash operating and financing activities:
Stock issued in connection with dividend reinvestment plan $ 20,230 $ 6,962
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 March 31,
2020 2019
Cash and cash equivalents $ 23,705 $ 5,635
Foreign currencies (cost of $654 and $207, respectively) 654 207
Restricted cash and cash equivalents 92,736 69,799
Restricted foreign currencies (cost of $2,049 and $509, respectively) 2,049 509
Total cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies shown in the Consolidated Statements of Cash Flows
$ 119,144 $ 76,150
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)
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
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%
(a)
7.58% 06/2021 $ 25,606 $ 25,575 1.2 % $ 24,325
NTS Technical Systems +~
One stop L + 6.00%
(a)
7.58% 06/2021 4,189 4,183 0.2 3,980
NTS Technical Systems
One stop L + 6.00%
(a)(c)
7.00% 06/2021 4,022 3,993 0.2 3,819
Tronair Parent, Inc. ^+
Senior loan L + 4.75%
(c)
6.46% 09/2023 721 715 — 628
Tronair Parent, Inc.
Senior loan L + 4.50%
(c)(f)
6.32% 09/2021 160 158 — 138
Whitcraft LLC ^*#+~
One stop L + 6.00%
(c)
7.45% 04/2023 64,220 64,687 3.2 61,652
Whitcraft LLC
One stop L + 6.00%
(c)
7.45% 04/2023 240 238 — 228
99,158 99,549 4.8 94,770
Automobile
Grease Monkey International, LLC ^*#+
Senior loan L + 5.00%
(c)
6.45% 11/2022 8,717 8,791 0.4 8,193
Grease Monkey International, LLC !~
Senior loan L + 5.00%
(c)
6.45% 11/2022 2,382 2,466 0.1 2,239
Grease Monkey International, LLC #~
Senior loan L + 5.00%
(c)
6.45% 11/2022 1,209 1,251 0.1 1,136
Grease Monkey International, LLC +~
Senior loan L + 5.00%
(c)
6.45% 11/2022 1,095 1,132 0.1 1,028
Grease Monkey International, LLC
Senior loan L + 5.00%
(c)
6.45% 11/2022 1,000 1,003 0.1 940
Grease Monkey International, LLC
Senior loan P + 4.00%
(a)(f)
6.71% 11/2022 123 124 — 112
Grease Monkey International, LLC
Senior loan L + 5.00%
N/A (6)
11/2022 — — — —
JHCC Holdings LLC
One stop L + 5.50%
(a)
6.50% 09/2025 15,709 15,424 0.7 13,824
JHCC Holdings LLC
One stop P + 4.50%
(f)
7.75% 09/2025 79 76 — 43
JHCC Holdings LLC
One stop P + 4.50%
(f)
7.75% 09/2025 13 12 — 1
Polk Acquisition Corp. *#%&
Senior loan L + 5.25%
(c)
6.70% 06/2022 17,680 17,443 0.8 16,265
Polk Acquisition Corp.
Senior loan L + 5.25%
(c)
6.69% 06/2022 170 167 — 154
Polk Acquisition Corp .%&
Senior loan L + 5.25%
(c)
6.70% 06/2022 104 102 — 96
Power Stop, LLC +~
Senior loan L + 4.50%
(c)(f)
5.95% 10/2025 2,857 2,915 0.1 2,514
Quick Quack Car Wash Holdings, LLC *#
One stop L + 6.50%
(a)
7.50% 04/2023 13,151 13,260 0.6 12,493
Quick Quack Car Wash Holdings, LLC #
One stop L + 6.50%
(a)
7.50% 04/2023 2,372 2,351 0.1 2,254
Quick Quack Car Wash Holdings, LLC *+
One stop L + 6.50%
(a)
7.50% 04/2023 2,073 2,147 0.1 1,969
Quick Quack Car Wash Holdings, LLC *+
One stop L + 6.50%
(a)
7.50% 04/2023 1,386 1,435 0.1 1,316
Quick Quack Car Wash Holdings, LLC
One stop L + 6.50%
(a)
7.50% 04/2023 1,122 1,187 0.1 1,066
Quick Quack Car Wash Holdings, LLC
One stop L + 6.50%
(a)
7.50% 04/2023 80 82 — 76
71,322 71,368 3.4 65,719
Beverage, Food and Tobacco
Abita Brewing Co., L.L.C. +
One stop L + 7.00%
(c)
8.61% 04/2021 9,983 10,030 1 0.5 9,184
Abita Brewing Co., L.L.C.
One stop L + 7.00%
(c)
8.74% 04/2021 20 20 1 — 18
BJH Holdings III Corp. +~
One stop L + 5.75%
(c)
7.20% 08/2025 46,168 47,636 1 2.2 42,937
BJH Holdings III Corp.
One stop L + 5.75%
(a)(c)
6.95% 08/2025 800 793 1 0.1 744
Cafe Rio Holding, Inc. ^#
One stop L + 5.50%
(c)
6.57% 09/2023 18,706 18,936 1 0.9 17,209
Cafe Rio Holding, Inc. #
One stop L + 5.50%
(d)
6.57% 09/2023 2,259 2,342 1 0.1 2,079
Cafe Rio Holding, Inc.
One stop L + 5.50%
(c)(d)
6.51% 09/2023 2,007 2,005 1 0.1 1,846
Cafe Rio Holding, Inc. *#
One stop L + 5.50%
(d)
6.57% 09/2023 1,435 1,488 1 0.1 1,319
See Notes to Consolidated Financial Statements.
8

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Beverage, Food and Tobacco - (continued)
Cafe Rio Holding, Inc. #
One stop L + 5.50%
(d)
6.57% 09/2023 $ 1,266 $ 1,314 1 0.1 % $ 1,165
Cafe Rio Holding, Inc.
One stop L + 5.50%
(c)
6.77% 09/2023 250 250 — 230
Cafe Rio Holding, Inc.
One stop L + 5.50%
(d)
6.77% 09/2023 182 182 — 167
Fintech Midco, LLC *#!
One stop L + 5.00%
(c)(d)
6.46% 08/2024 24,535 24,925 1.2 23,309
Fintech Midco, LLC #
One stop L + 5.00%
(c)(d)
6.65% 08/2024 1,136 1,179 0.1 1,079
Fintech Midco, LLC
One stop L + 5.00%
(a)
6.00% 08/2024 200 199 — 190
Flavor Producers, LLC #~
Senior loan L + 4.75%
(c)
6.12% 12/2023 5,006 4,881 0.2 4,605
Flavor Producers, LLC
Senior loan L + 4.75%
(c)(d)
6.13% 12/2022 28 24 — 26
FWR Holding Corporation ^#
One stop L + 5.50%
(c)
6.77% 08/2023 9,156 9,270 0.4 8,424
FWR Holding Corporation #
One stop L + 5.50%
(c)
6.77% 08/2023 1,830 1,898 0.1 1,683
FWR Holding Corporation #
One stop L + 5.50%
(c)
6.77% 08/2023 1,157 1,199 0.1 1,065
FWR Holding Corporation #
One stop L + 5.50%
(c)
6.77% 08/2023 365 377 — 336
FWR Holding Corporation
One stop L + 5.50%
(c)
6.77% 08/2023 275 274 — 253
FWR Holding Corporation #
One stop L + 5.50%
(c)
6.77% 08/2023 274 282 — 252
FWR Holding Corporation
One stop L + 5.50%
(a)
6.50% 08/2023 132 131 — 121
FWR Holding Corporation
One stop L + 5.50%
(c)
6.77% 08/2023 90 89 — 80
Global ID Corporation *#+~
One stop L + 6.50%
(c)
7.57% 11/2021 14,323 14,478 0.7 14,037
Global ID Corporation *#
One stop L + 6.50%
(c)
7.57% 11/2021 816 842 0.1 800
Global ID Corporation #
One stop L + 6.50%
(c)
7.57% 11/2021 714 736 — 699
Global ID Corporation #
One stop L + 6.50%
(c)
7.57% 11/2021 490 506 — 481
Global ID Corporation
One stop L + 6.50%
(c)
7.62% 11/2021 60 60 — 58
Global ID Corporation (5)
One stop L + 6.50%
N/A (6)
11/2021 — — — (3)
Mendocino Farms, LLC
One stop L + 8.50%
(a)
2.00% cash/7.50% PIK 06/2023 794 821 0.1 778
Mendocino Farms, LLC
One stop L + 8.50%
(a)
2.00% cash/7.50% PIK 06/2023 624 645 — 611
Mendocino Farms, LLC
One stop L + 8.50%
(a)
2.00% cash/7.50% PIK 06/2023 612 608 — 600
Mendocino Farms, LLC
One stop L + 8.50%
(a)
2.00% cash/7.50% PIK 06/2023 301 299 — 295
Mendocino Farms, LLC
One stop L + 8.50%
(a)
2.00% cash/7.50% PIK 06/2023 300 299 — 295
Mendocino Farms, LLC
One stop L + 8.50%
(a)
2.00% cash/7.50% PIK 06/2023 148 148 — 145
Mendocino Farms, LLC
One stop L + 8.50%
(a)
2.00% cash/7.50% PIK 06/2023 90 87 — 83
Mid-America Pet Food, L.L.C. ^*#
One stop L + 5.50%
(a)
6.50% 12/2021 22,398 22,771 1.2 22,398
Mid-America Pet Food, L.L.C.
One stop L + 5.50%
N/A (6)
12/2021 — — — —
NBC Intermediate, LLC ^&
Senior loan L + 4.25%
(d)
5.33% 09/2023 4,589 4,577 0.2 4,176
NBC Intermediate, LLC #~
Senior loan L + 4.25%
(a)(d)
5.33% 09/2023 2,353 2,385 0.1 2,142
NBC Intermediate, LLC *#
Senior loan L + 4.25%
(d)
5.33% 09/2023 2,309 2,342 0.1 2,101
NBC Intermediate, LLC #
Senior loan L + 4.25%
(d)
5.33% 09/2023 666 660 — 607
NBC Intermediate, LLC
Senior loan L + 4.25%
(a)
5.25% 09/2023 46 46 — 42
Purfoods, LLC #
One stop L + 5.50%
(a)
6.50% 05/2021 16,108 16,301 0.8 16,108
Purfoods, LLC *
One stop L + 5.50%
(a)
6.50% 05/2021 540 555 — 540
Purfoods, LLC ^*
One stop L + 5.50%
(a)
6.50% 05/2021 389 400 — 389
Purfoods, LLC *~
One stop L + 5.50%
(a)
6.50% 05/2021 294 301 — 294
Purfoods, LLC *~
One stop L + 5.50%
(a)
6.50% 05/2021 294 301 — 294
Purfoods, LLC *
One stop L + 5.50%
(a)
6.50% 05/2021 293 301 — 293
Purfoods, LLC *
One stop L + 5.50%
(a)
6.50% 05/2021 253 254 — 253
See Notes to Consolidated Financial Statements.
9
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Beverage, Food and Tobacco - (continued)
Purfoods, LLC
One stop N/A 7.00% PIK 05/2026 $ 241 $ 246 — % $ 241
Purfoods, LLC
One stop L + 5.50%
(a)(c)
6.50% 05/2021 150 151 — 150
Purfoods, LLC *
One stop L + 5.50%
(a)
6.50% 05/2021 148 152 — 148
Purfoods, LLC
One stop L + 6.00%
(a)
7.00% 05/2021 120 119 — 120
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
Rubio's Restaurants, Inc. ^*#(7)%&
Senior loan L + 5.00%
(c)
2.27% cash/4.00% PIK 04/2021 17,944 17,838 0.5 9,278
Rubio's Restaurants, Inc. (7)
Senior loan L + 7.50%
(a)
8.75% 04/2021 162 159 — 82
SSRG Holdings, LLC
One stop L + 5.25%
(c)
6.32% 11/2025 923 905 0.1 803
SSRG Holdings, LLC
One stop L + 5.25%
(c)
6.30% 11/2025 75 74 — 65
Velvet Taco Holdings, Inc. ~
One stop L + 7.00%
(c)
7.84% 03/2026 1,778 1,761 0.1 1,672
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) — (6)
Wood Fired Holding Corp. *#
One stop L + 5.75% 7.67% 12/2023 14,108 14,348 0.7 12,980
Wood Fired Holding Corp.
One stop L + 5.75%
(c)
6.95% 12/2023 697 697 — 641
Wood Fired Holding Corp.
One stop L + 5.75%
(c)
6.98% 12/2023 198 197 — 182
233,806 237,292 10.9 213,389
Buildings and Real Estate
Brooks Equipment Company, LLC ^*#
One stop L + 5.00%
(a)(c)
6.60% 08/2020 25,703 25,794 1.3 24,674
Brooks Equipment Company, LLC One stop L + 5.00%
(a)
6.00% 08/2020 3,384 3,382 0.2 3,249
Groundworks LLC +
Senior loan L + 5.50%
(c)
7.34% 01/2026 4,733 4,676 0.2 4,165
Groundworks LLC
Senior loan L + 5.50%
(c)(d)
6.50% 01/2026 36 36 — 32
Groundworks LLC (5)
Senior loan L + 5.50%
N/A (6)
01/2026 — (1) — —
Jensen Hughes, Inc .%&
Senior loan L + 4.50%
(a)(f)
5.50% 03/2024 4,213 4,213 0.2 3,791
Jensen Hughes, Inc.
Senior loan L + 4.50%
(a)(f)
5.50% 03/2024 1,010 1,047 0.1 910
Jensen Hughes, Inc. +
Senior loan L + 4.50%
(a)(f)
5.50% 03/2024 919 934 — 826
Jensen Hughes, Inc.
Senior loan L + 4.50%
(a)(f)
5.50% 03/2024 441 457 — 397
Jensen Hughes, Inc. +
Senior loan L + 4.50%
(a)(f)
5.50% 03/2024 281 285 — 253
Jensen Hughes, Inc.
Senior loan L + 4.50%
(a)(f)
5.50% 03/2024 219 219 — 197
Jensen Hughes, Inc .%&
Senior loan L + 4.50%
(a)(f)
5.50% 03/2024 117 117 — 106
MRI Software LLC ~
One stop L + 5.50%
(d)
6.57% 02/2026 14,440 14,300 0.7 13,862
MRI Software LLC
One stop L + 5.50%
(d)
6.57% 02/2026 136 133 — 125
MRI Software LLC (5)
One stop L + 5.50%
N/A (6)
02/2026 — (1) — (12)
Paradigm DKD Group, LLC +(7)%
Senior loan L + 6.25%
(c)
7.70% 05/2022 3,243 2,118 0.1 1,692
Paradigm DKD Group, LLC (5)(7)
Senior loan L + 6.25%
(c)
7.70% 05/2022 1 (142) — 2
58,876 57,567 2.8 54,269
Chemicals, Plastics and Rubber
Flexan, LLC %&
One stop L + 5.25%
(c)
6.70% 02/2021 8,495 8,478 0.4 8,070
See Notes to Consolidated Financial Statements.
10
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Chemicals, Plastics and Rubber - (continued)
Flexan, LLC *#
One stop L + 5.25%
(c)
6.70% 02/2021 $ 3,290 $ 3,283 0.2 % $ 3,125
Flexan, LLC %&
One stop L + 5.25%
(c)
6.70% 02/2021 2,359 2,355 0.1 2,242
Flexan, LLC ^#
One stop L + 5.25%
(c)
6.70% 02/2021 1,547 1,544 0.1 1,471
Flexan, LLC
One stop L + 5.25%
(c)
6.70% 02/2021 1,052 1,051 — 998
Inhance Technologies Holdings LLC #
One stop L + 5.50%
(c)
7.41% 07/2024 12,766 12,901 0.6 11,597
Inhance Technologies Holdings LLC
One stop L + 5.50%
(c)
7.15% 07/2024 1,937 1,968 0.1 1,760
Inhance Technologies Holdings LLC
One stop L + 5.50%
(a)(c)(f)
7.32% 07/2024 160 160 — 140
31,606 31,740 1.5 29,403
Containers, Packaging and Glass
AmerCareRoyal LLC +(8)(9)
Senior loan L + 5.00%
(c)(f)
6.81% 11/2025 847 839 0.1 762
AmerCareRoyal LLC +(8)(9)
Senior loan P + 4.00%
(f)
8.75% 11/2025 153 152 — 138
Fortis Solutions Group LLC +
Senior loan L + 4.50%
(a)
5.50% 12/2023 1,594 1,579 0.1 1,499
Fortis Solutions Group LLC +
Senior loan L + 4.50%
(a)
5.50% 12/2023 636 630 — 598
Fortis Solutions Group LLC +
Senior loan L + 4.50%
(a)
5.50% 12/2023 610 604 — 574
Fortis Solutions Group LLC
Senior loan L + 4.50%
(a)
5.50% 12/2023 41 40 — 38
3,881 3,844 0.2 3,609
Diversified/Conglomerate Manufacturing
Blackbird Purchaser, Inc. +~
Senior loan L + 4.50%
(c)(f)
5.95% 04/2026 15,603 15,898 0.7 13,731
Blackbird Purchaser, Inc.
Senior loan L + 4.50%
(c)
5.95% 04/2024 116 114 — 88
Blackbird Purchaser, Inc.
Senior loan L + 4.50%
N/A (6)
04/2026 — 22 — —
Chase Industries, Inc. +~
Senior loan L + 5.50%
(a)
5.45% cash/1.50% PIK 05/2025 12,059 12,193 0.5 10,612
Chase Industries, Inc.
Senior loan L + 5.50%
(a)
5.45% cash/1.50% PIK 05/2025 985 1,024 — 868
Chase Industries, Inc.
Senior loan L + 5.50%
(a)
5.45% cash/1.50% PIK 05/2023 354 358 — 310
Inventus Power, Inc. ^*+
One stop L + 6.50%
(a)
N/A (6)
04/2021 14,449 13,830 0.7 13,726
Inventus Power, Inc. (5)
One stop L + 6.50%
N/A (6)
04/2021 — (28) — (42)
Madison Safety & Flow LLC +
Senior loan L + 4.50%
(a)
5.52% 03/2025 505 504 — 485
Madison Safety & Flow LLC
Senior loan P + 3.50%
(a)(f)
6.39% 03/2025 6 6 — 6
Pasternack Enterprises, Inc. and Fairview Microwave, Inc +~%&
Senior loan L + 4.00%
(a)
4.99% 07/2025 23,758 24,007 1.1 21,382
Pasternack Enterprises, Inc. and Fairview Microwave, Inc Senior loan L + 4.00%
(c)
4.82% 07/2023 36 36 — 28
PetroChoice Holdings, Inc .^#
Senior loan L + 5.00%
(c)
6.78% 08/2022 3,292 3,301 0.1 2,963
Protective Industrial Products, Inc. +
Senior loan L + 4.50%
(a)
6.10% 01/2024 998 988 — 928
Reladyne, Inc. ^*#&
Senior loan L + 5.00%
(c)
6.91% 07/2022 33,034 33,313 1.6 31,051
Reladyne, Inc. ~
Senior loan L + 5.00%
(c)
6.91% 07/2022 3,500 3,575 0.2 3,289
Reladyne, Inc. ^#
Senior loan L + 5.00%
(c)
6.91% 07/2022 1,896 1,936 0.1 1,781
Reladyne, Inc.
Senior loan L + 5.00%
(c)
6.91% 07/2022 1,728 1,788 0.1 1,624
Reladyne, Inc. #~
Senior loan L + 5.00%
(c)
6.91% 07/2022 1,633 1,669 0.1 1,536
Reladyne, Inc. #
Senior loan L + 5.00%
(c)
6.91% 07/2022 1,553 1,606 0.1 1,460
Reladyne, Inc. #~
Senior loan L + 5.00%
(c)
6.91% 07/2022 745 761 — 700
Togetherwork Holdings, LLC *#
One stop L + 6.25%
(a)
7.25% 03/2025 15,644 15,802 0.7 13,297
Togetherwork Holdings, LLC +~
One stop L + 6.25%
(a)
7.25% 03/2025 1,812 1,881 0.1 1,540
Togetherwork Holdings, LLC
One stop L + 6.25%
(a)
7.25% 03/2025 1,759 1,823 0.1 1,495
Togetherwork Holdings, LLC *#
One stop L + 6.25%
(a)
7.25% 03/2025 1,715 1,779 0.1 1,458
Togetherwork Holdings, LLC +~
One stop L + 6.25%
(a)
7.25% 03/2025 1,656 1,692 0.1 1,408
See Notes to Consolidated Financial Statements.
11
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Manufacturing
Togetherwork Holdings, LLC *+
One stop L + 6.25%
(a)
7.25% 03/2025 $ 1,596 $ 1,657 0.1 % $ 1,357
Togetherwork Holdings, LLC
One stop L + 6.25%
(a)
7.25% 03/2025 1,488 1,542 0.1 1,265
Togetherwork Holdings, LLC *#
One stop L + 6.25%
(a)
7.25% 03/2025 1,219 1,239 0.1 1,037
Togetherwork Holdings, LLC
One stop L + 6.25%
(a)
7.25% 03/2025 672 696 — 571
Togetherwork Holdings, LLC +
One stop L + 6.25%
(a)
7.25% 03/2025 449 445 — 382
Togetherwork Holdings, LLC
One stop L + 6.25%
(a)
7.25% 03/2024 300 298 — 256
Togetherwork Holdings, LLC
One stop L + 6.25%
(a)
7.25% 03/2025 65 67 — 55
Togetherwork Holdings, LLC ~
One stop L + 6.25%
(a)
7.25% 03/2025 59 62 — 50
144,684 145,884 6.7 130,697
Diversified/Conglomerate Service
3ES Innovation, Inc. +~(8)(12)
One stop L + 5.75%
(c)
7.48% 05/2025 13,830 14,101 0.7 13,138
3ES Innovation, Inc. (5)(8)(12)
One stop L + 5.75%
N/A (6)
05/2025 — (2) — (10)
Accela, Inc .*#
One stop L + 3.25%
(a)
4.25% cash/1.65% PIK 09/2023 4,442 4,442 0.2 4,309
Accela, Inc. (5)
One stop L + 7.00%
N/A (6)
09/2023 — — — (4)
Acquia, Inc. !~
One stop L + 7.00%
(c)
8.58% 10/2025 7,118 7,052 0.4 6,975
Acquia, Inc. (5)
One stop L + 7.00%
N/A (6)
10/2025 — (1) — (1)
Agility Recovery Solutions Inc. ^*#
One stop L + 6.00%
(c)(f)
7.23% 03/2023 22,591 22,737 1.1 21,686
Agility Recovery Solutions Inc. (5)
One stop L + 6.00%
N/A (6)
03/2023 — (4) — —
Apptio, Inc. !~
One stop L + 7.25%
(a)
8.25 01/2025 57,009 57,804 2.9 57,009
Apptio, Inc. (5)
One stop L + 7.25%
N/A (6)
01/2025 — (2) — —
Arch Global CCT Holdings Corp. #+~
Senior loan L + 4.75%
(c)(f)
5.82% 04/2026 4,165 4,203 0.2 3,748
Arch Global CCT Holdings Corp.
Senior loan L + 4.75%
(a)
5.74% 04/2025 58 58 — 52
Arch Global CCT Holdings Corp. (5)
Senior loan L + 4.75%
N/A (6)
04/2026 — — — (9)
Astute Holdings, Inc. !
One stop L + 6.00%
(c)
7.07% 04/2025 10,881 11,059 0.5 10,663
Astute Holdings, Inc.
One stop L + 6.00%
(c)
7.21% 04/2025 150 149 — 148
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 1,000 976 — 900
AutoQuotes, LLC !
One stop L + 5.50%
(c)
7.12% 11/2024 9,888 10,040 0.5 9,492
AutoQuotes, LLC
One stop L + 5.50%
(c)
6.72% 11/2024 100 100 — 96
Axiom Merger Sub Inc. !~
One stop L + 5.25%
(c)
7.07% 04/2026 5,877 5,935 0.3 5,583
Axiom Merger Sub Inc .+~(8)(9)
One stop E + 5.50%
(g)
5.50% 04/2026 2,423 2,446 0.1 2,304
Axiom Merger Sub Inc.
One stop L + 5.25%
(c)
6.25% 04/2026 30 29 — 26
Axiom Merger Sub Inc. (5)
One stop L + 5.25%
N/A (6)
04/2026 — (3) — —
Bazaarvoice, Inc .*#+~
One stop L + 5.75%
(a)(c)
6.82% 02/2024 48,370 49,226 2.4 46,435
Bazaarvoice, Inc.
One stop L + 5.75%
(c)
6.96% 02/2024 300 297 — 284
Bearcat Buyer, Inc. +~
Senior loan L + 4.25%
(c)
5.70% 07/2026 2,942 2,967 0.1 2,796
Bearcat Buyer, Inc. ~
Senior loan L + 4.25%
(c)
5.70% 07/2026 311 308 — 295
Bearcat Buyer, Inc.
Senior loan L + 4.25%
(c)
5.70% 07/2026 166 166 — 139
Bearcat Buyer, Inc.
Senior loan L + 4.25%
(a)
4.86% 07/2024 22 22 — 20
Bullhorn, Inc. #+~
One stop L + 5.50%
(c)(d)(f)
6.57% 10/2025 67,642 66,716 3.2 62,231
Bullhorn, Inc. (8)(9)
One stop L + 6.00%
(i)(j)
6.70% 10/2025 12,069 11,903 0.6 11,471
Bullhorn, Inc. (8)(9)
One stop L + 5.75%
(c)(d)
5.75% 10/2025 4,846 4,780 0.2 4,551
Bullhorn, Inc.
One stop L + 5.50%
(a)
6.50% 10/2025 239 235 — 220
See Notes to Consolidated Financial Statements.
12
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Bullhorn, Inc.
One stop L + 5.50%
(c)(d)
6.57% 10/2025 $ 78 $ 77 — % $ 72
Bullhorn, Inc.
One stop L + 0.00%
(c)(d)
1.07% 10/2025 59 55 — 34
Calabrio, Inc. !~
One stop L + 6.50%
(c)
7.95% 06/2025 24,880 24,895 1.2 23,636
Calabrio, Inc.
One stop L + 6.50%
(a)
7.50% 06/2025 72 72 — 66
Centrify Corporation *#
One stop L + 6.25%
(d)
7.33% 08/2024 23,257 23,301 1.0 20,466
Centrify Corporation
One stop P + 5.25%
(f)
8.50% 08/2024 300 300 — 264
Clearwater Analytics, LLC ^*#
One stop L + 5.50%
(d)
7.09% 09/2022 16,458 16,453 0.8 16,129
Clearwater Analytics, LLC *
One stop L + 5.50%
(c)
7.41% 09/2022 6,071 6,110 0.3 5,950
Clearwater Analytics, LLC +
One stop L + 5.50%
(c)
7.41% 09/2022 995 977 — 975
Clearwater Analytics, LLC (5)
One stop L + 5.50%
N/A (6)
09/2022 — (3) — (4)
Cloudbees, Inc.
One stop L + 9.00%
(a)
10.08% cash/0.50% PIK 05/2023 4,204 4,244 0.2 4,077
Cloudbees, Inc.
One stop L + 9.00%
(a)
10.08% cash/0.50% PIK 05/2023 1,465 1,479 0.1 1,422
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 45,231 44,961 2.3 44,327
Confluence Technologies, Inc.
One stop L + 5.75%
(a)
6.75% 03/2024 69 68 — 67
Connexin Software, Inc .!~
One stop L + 8.50%
(a)
9.50% 02/2024 7,550 7,627 0.4 7,247
Connexin Software, Inc.
One stop L + 8.50% 9.50% 02/2024 40 40 — 38
Conservice, LLC +~
One stop L + 5.25%
(b)
6.51% 12/2024 3,775 3,844 0.2 3,624
Conservice, LLC
One stop L + 5.25%
(b)
6.30% 12/2024 8 8 — 8
Convercent, Inc.
One stop L + 9.00%
(c)
8.25% cash/2.75% PIK 12/2024 2,754 2,675 0.1 2,787
Convercent, Inc.
Subordinated debt N/A 4.00% 11/2020 138 138 — 143
Convercent, Inc.
One stop L + 6.25%
(a)
7.25% 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%
(a)
5.75% 09/2023 22,060 22,337 1.1 20,956
Daxko Acquisition Corporation
One stop L + 4.75%
(a)(f)
5.75% 09/2023 68 68 — 64
Digital Guardian, Inc. !
One stop L + 9.50%
(a)
8.41% cash/3.00% PIK 06/2023 8,601 8,935 0.5 8,864
Digital Guardian, Inc.
Subordinated debt N/A 8.00% PIK 06/2023 9 6 — 9
Digital Guardian, Inc.
One stop L + 5.00%
N/A (6)
06/2023 — — — —
Digital Guardian, Inc.
One stop L + 6.50%
N/A (6)
06/2023 — 16 — 23
DISA Holdings Acquisition Subsidiary Corp .+~%
Senior loan L + 4.00%
(a)
5.58% 06/2022 9,865 9,964 0.5 9,272
DISA Holdings Acquisition Subsidiary Corp. Senior loan L + 4.00%
(c)
5.00% 06/2022 1,448 1,448 0.1 1,361
DISA Holdings Acquisition Subsidiary Corp. (5)
Senior loan L + 4.00%
N/A (6)
06/2022 — 3 — (20)
E2open, LLC *#+!~
One stop L + 5.75%
(c)
7.36% 11/2024 86,337 87,307 4.2 82,884
E2open, LLC
One stop L + 5.75%
(c)
6.95% 11/2024 242 235 — 222
EGD Security Systems, LLC ^*#
One stop L + 5.75%
(c)
7.62% 06/2023 30,092 30,519 1.5 30,092
EGD Security Systems, LLC #
One stop L + 5.75%
(c)
7.66% 06/2023 644 667 — 644
EGD Security Systems, LLC
One stop L + 5.75%
(c)
7.62% 06/2023 575 571 — 575
EGD Security Systems, LLC
One stop L + 5.75%
(c)
7.62% 06/2023 347 346 — 347
EGD Security Systems, LLC
One stop L + 5.75%
(c)
7.49% 06/2023 140 138 — 140
EWC Growth Partners LLC
One stop L + 5.50%
(b)
6.50% 03/2026 918 900 — 808
EWC Growth Partners LLC
One stop L + 5.50%
(c)
6.50% 03/2026 30 29 — 26
EWC Growth Partners LLC
One stop L + 5.50%
(c)
5.50% 03/2026 18 18 — 16
GS Acquisitionco, Inc. *#+!~
One stop L + 5.75%
(d)
6.83% 05/2024 54,322 54,767 2.7 53,777
See Notes to Consolidated Financial Statements.
13
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
GS Acquisitionco, Inc. *#
One stop L + 5.75%
(d)
6.83% 05/2024 $ 12,820 $ 13,162 0.7 % $ 12,692
GS Acquisitionco, Inc. #
One stop L + 5.75%
(d)
6.83% 05/2024 3,303 3,392 0.2 3,270
GS Acquisitionco, Inc. +~
One stop L + 5.75%
(d)
6.83% 05/2024 3,048 3,130 0.2 3,017
GS Acquisitionco, Inc. #
One stop L + 5.75%
(d)
6.83% 05/2024 1,908 1,960 0.1 1,890
GS Acquisitionco, Inc.
One stop L + 5.75%
(d)
6.83% 05/2024 152 148 — 148
GS Acquisitionco, Inc.
One stop L + 5.75%
(d)
6.83% 05/2024 60 60 — 59
HealthcareSource HR, Inc. *#
One stop L + 5.25%
(c)
6.70% 05/2023 33,917 34,037 1.7 32,899
HealthcareSource HR, Inc.
One stop L + 5.25%
(c)
6.37% 05/2023 190 189 — 184
HSI Halo Acquisition, Inc. +~
One stop L + 5.75%
(a)
6.75% 08/2026 4,112 4,163 0.2 3,907
HSI Halo Acquisition, Inc.
One stop L + 5.75%
(a)
6.75% 08/2026 304 298 — 272
HSI Halo Acquisition, Inc.
One stop P + 4.75%
(f)
8.00% 09/2025 50 50 — 48
Hydraulic Authority III Limited ~(8)(9)(10)
One stop L + 6.00%
(i)(j)
7.00% 11/2025 12,340 12,567 0.6 11,439
Hydraulic Authority III Limited (8)(9)(10)
One stop N/A 11.00% PIK 11/2025 199 203 — 196
Hydraulic Authority III Limited (8)(9)(10)
One stop L + 6.00%
(a)(c)(d)
7.00% 11/2025 84 84 — 80
ICIMS, Inc. !~
One stop L + 6.50%
(a)
7.50% 09/2024 14,355 14,571 0.7 13,924
ICIMS, Inc. !~
One stop L + 6.50%
(a)
7.50% 09/2024 4,501 4,586 0.2 4,365
ICIMS, Inc. (5)
One stop L + 6.50%
N/A (6)
09/2024 — (1) — (2)
Imprivata, Inc. *#+~
Senior loan L + 4.00%
(c)
5.45% 10/2023 9,311 9,523 0.5 9,311
Imprivata, Inc. (5)
Senior loan L + 4.00%
N/A (6)
10/2023 — (1) — —
Infinisource, Inc .+~
One stop L + 4.75%
(c)
6.20% 10/2026 29,328 28,866 1.4 26,982
Infinisource, Inc.
One stop L + 4.75%
(c)
6.54% 10/2026 111 110 — 102
Infinisource, Inc. (5)
One stop L + 4.75%
N/A (6)
10/2026 — (2) — (14)
Infinisource, Inc. (5)
One stop L + 4.75%
(c)
N/A (6)
10/2026 — (3) — (25)
Infogix, Inc. *#
One stop L + 6.75%
(c)
8.20% 04/2024 7,215 7,364 0.4 6,927
Infogix, Inc.*+ One stop L + 6.75%
(c)
8.20% 04/2024 1,113 1,132 0.1 1,068
Infogix, Inc.
One stop L + 6.75%
(c)
7.75% 04/2024 90 91 — 86
Integral Ad Science, Inc. !~
One stop L + 7.25%
(a)
7.00% cash/1.25% PIK 07/2024 15,782 15,992 0.8 15,149
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 69,253 3.4 66,969
Integration Appliance, Inc.
One stop L + 7.25%
(a)(c)
8.54% 08/2023 973 969 0.1 954
Internet Truckstop Group LLC *#!
One stop L + 5.50%
(c)
6.96% 04/2025 22,701 23,343 1.1 21,794
Internet Truckstop Group LLC (5)
One stop L + 5.50%
N/A (6)
04/2025 — (3) — (10)
Invoice Cloud, Inc. !
One stop L + 6.50%
(c)
4.96% cash/3.25% PIK 02/2024 6,415 6,459 0.3 6,028
Invoice Cloud, Inc.
One stop L + 6.50%
(c)
7.96% 02/2024 1,603 1,602 0.1 1,460
Invoice Cloud, Inc. (5)
One stop L + 6.00%
N/A (6)
02/2024 — — — (4)
JAMF Holdings, Inc. !~
One stop L + 7.00%
(c)
8.70% 11/2022 13,559 13,767 0.7 13,422
JAMF Holdings, Inc. (5)
One stop L + 7.00%
N/A (6)
11/2022 — — — (2)
Kareo, Inc.
One stop L + 9.00%
(a)
10.00% 06/2022 10,273 10,419 0.5 10,356
Kareo, Inc. !
One stop L + 9.00%
(a)
10.00% 06/2022 941 960 0.1 949
Kareo, Inc.
One stop L + 9.00%
(a)
10.00% 06/2022 753 769 — 759
Kareo, Inc.
One stop P + 8.00%
(f)
11.25% 06/2022 80 80 — 80
Kaseya Traverse Inc !~
One stop L + 7.00%
(a)(c)
5.91% cash/3.00% PIK 05/2025 35,546 36,614 1.8 34,472
Kaseya Traverse Inc
One stop L + 7.00%
(c)
5.91% cash/3.00% PIK 05/2025 501 519 — 486
See Notes to Consolidated Financial Statements.
14
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Kaseya Traverse Inc One stop L + 6.50%
(a)(b)(c)
7.50% 05/2025 $ 181 $ 180 — % $ 172
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)
5.39% 03/2025 2,553 2,612 0.1 2,349
Learn-it Systems, LLC
Senior loan L + 4.50%
(c)
6.17% 03/2025 207 206 — 191
Learn-it Systems, LLC
Senior loan L + 4.50%
(a)(c)(f)
5.95% 03/2025 32 33 — 30
Litera Bidco LLC +~
One stop L + 5.75%
(c)
7.21% 05/2026 3,695 3,721 0.2 3,585
Litera Bidco LLC
One stop L + 5.75%
(c)
7.21% 05/2026 705 731 — 683
Litera Bidco LLC
One stop L + 5.75%
(c)
7.21% 05/2026 705 732 — 683
Litera Bidco LLC
One stop L + 5.75%
(c)
6.95% 05/2025 60 60 — 58
Maverick Bidco Inc. *#!~
One stop L + 6.25%
(d)
7.32% 04/2023 39,667 39,929 2.0 38,080
Maverick Bidco Inc .*#
One stop L + 6.25%
(d)
7.32% 04/2023 3,199 3,263 0.2 3,071
Maverick Bidco Inc.
One stop L + 6.25%
(c)
7.60% 04/2023 202 199 — 192
MetricStream, Inc. !
One stop L + 7.00%
(c)
9.00% 05/2024 9,131 9,220 0.5 8,921
MetricStream, Inc. (5)
One stop L + 7.00%
N/A (6)
05/2024 — — — (4)
MetricStream, Inc. (5)
One stop L + 7.00%
N/A (6)
04/2024 — 11 — (46)
Mindbody, Inc. !~
One stop L + 7.00%
(c)
8.00% 02/2025 48,351 49,227 2.2 43,516
Mindbody, Inc.
One stop L + 7.00%
(c)
8.07% 02/2025 238 237 — 214
Ministry Brands, LLC +
Senior loan L + 4.00%
(b)
5.62% 12/2022 1,453 1,474 0.1 1,308
Ministry Brands, LLC +
Senior loan L + 4.00%
(b)
5.62% 12/2022 831 843 — 748
Ministry Brands, LLC
Senior loan L + 4.00%
(b)
5.62% 12/2022 379 392 — 341
MSHC, Inc. +
Senior loan L + 4.25%
(a)(f)
5.25% 12/2024 345 341 — 324
MSHC, Inc. (5)
Senior loan L + 4.25%
N/A (6)
12/2024 — — — (3)
Namely, Inc. !~
One stop L + 7.50%
(c)
8.25% cash/1.25% PIK 06/2024 3,557 3,596 0.2 3,378
Namely, Inc.
One stop L + 7.50%
(c)
8.25% cash/1.25% PIK 06/2024 2,020 2,005 0.1 1,851
Namely, Inc. (5)
One stop L + 6.25%
N/A (6)
06/2024 — — — (6)
Net Health Acquisition Corp. *#
One stop L + 5.50%
(d)
6.57% 12/2023 8,598 8,716 0.4 8,340
Net Health Acquisition Corp .+~
One stop L + 5.50%
(d)
6.57% 12/2023 6,880 7,017 0.3 6,674
Net Health Acquisition Corp. *#
One stop L + 5.50%
(d)
6.57% 12/2023 1,202 1,218 0.1 1,165
Net Health Acquisition Corp. (5)
One stop L + 5.50%
N/A (6)
12/2023 — (2) — (6)
Netsmart Technologies, Inc.
Senior loan L + 4.75%
(a)
5.70% 04/2021 42 40 — 26
Nextech Holdings, LLC +~
One stop L + 5.50%
(a)
6.49% 06/2025 4,032 4,105 0.2 3,710
Nextech Holdings, LLC
One stop L + 5.50%
(c)
6.11% 06/2025 500 496 — 452
Nextech Holdings, LLC (5)
One stop L + 5.50%
N/A (6)
06/2025 — (22) — (188)
Nexus Brands Group, Inc .*#
One stop L + 6.00%
(c)
7.61% 11/2023 9,426 9,534 0.4 8,295
Nexus Brands Group, Inc. +~(8)(9)
One stop L + 6.00%
(j)
7.00% 11/2023 7,181 7,318 0.3 6,247
Nexus Brands Group, Inc. #
One stop L + 6.00%
(c)
7.61% 11/2023 1,996 2,071 0.1 1,756
Nexus Brands Group, Inc.#~ One stop L + 6.00%
(c)
7.61% 11/2023 1,444 1,499 0.1 1,271
Nexus Brands Group, Inc.~ One stop L + 6.00%
(c)
7.61% 11/2023 769 762 — 677
Nexus Brands Group, Inc.
One stop L + 6.00%
(c)(d)
7.61% 11/2023 200 202 — 176
Nexus Brands Group, Inc. (8)(9)
One stop L + 6.00%
(c)
7.00% 11/2023 70 69 — 66
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) — —
See Notes to Consolidated Financial Statements.
15
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Nexus Brands Group, Inc.
One stop L + 6.00%
N/A (6)
11/2023 $ — $ — — % $ —
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH!
One stop P + 6.75%
(f)
8.25% cash/1.75% PIK 10/2024 2,120 2,100 0.1 2,163
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 — — — 3
Property Brands, Inc. #
One stop L + 6.00%
(a)
7.00% 01/2024 19,947 20,167 0.9 18,351
Property Brands, Inc. +~
One stop L + 6.00%
(a)
7.00% 01/2024 13,736 13,602 0.7 12,636
Property Brands, Inc. *#
One stop L + 6.00%
(a)
7.00% 01/2024 6,686 6,811 0.3 6,151
Property Brands, Inc. ^~
One stop L + 6.00%
(a)
7.00% 01/2024 3,260 3,381 0.2 2,998
Property Brands, Inc.
One stop L + 6.00%
(a)
7.00% 01/2024 1,432 1,483 0.1 1,317
Property Brands, Inc. #
One stop L + 6.00%
(a)
7.00% 01/2024 1,212 1,255 0.1 1,114
Property Brands, Inc.
One stop L + 6.00%
(a)
7.00% 01/2024 1,194 1,238 0.1 1,099
Property Brands, Inc.
One stop L + 6.00%
(a)
7.00% 01/2024 955 948 — 878
Property Brands, Inc.
One stop L + 6.00%
(a)
7.00% 01/2024 505 522 — 464
Property Brands, Inc. (5)
One stop L + 6.00%
N/A (6)
01/2024 — (1) — (16)
Property Brands, Inc. (5)
One stop L + 6.00%
N/A (6)
01/2024 — (3) — (281)
PCS Intermediate II Holdings, LLC ~
One stop L + 5.50%
(e)
6.50% 01/2026 14,566 14,424 0.7 13,983
PCS Intermediate II Holdings, LLC
One stop L + 5.50%
(a)
6.50% 01/2026 40 39 — 36
Personify, Inc. *+
One stop L + 5.75%
(c)
7.20% 09/2024 15,535 15,823 0.7 14,137
Personify, Inc.
One stop L + 5.75%
(c)
7.00% 09/2024 80 80 — 66
PlanSource Holdings, Inc. !~
One stop L + 6.25%
(d)
7.95% 04/2025 11,416 11,556 0.6 10,959
PlanSource Holdings, Inc. (5)
One stop L + 6.25%
N/A (6)
04/2025 — (1) — (6)
Project Power Buyer, LLC +~
One stop L + 5.75%
(c)
7.21% 05/2026 11,554 11,784 0.6 10,977
Project Power Buyer, LLC (5)
One stop L + 5.75%
N/A (6)
05/2025 — (1) — (8)
PT Intermediate Holdings III, LLC +~
One stop L + 5.50%
(c)
6.95% 10/2025 29,926 29,472 1.4 27,532
Qgenda Intermediate Holdings, LLC +
One stop L + 5.00%
(a)
6.00% 06/2025 15,354 15,374 0.7 14,433
Qgenda Intermediate Holdings, LLC ~
One stop L + 5.00%
(a)
6.00% 06/2025 998 988 0.1 938
Qgenda Intermediate Holdings, LLC
One stop L + 5.00%
(a)
6.00% 06/2025 200 198 — 188
Recordxtechnologies, LLC +
One stop L + 5.50%
(a)
6.50% 12/2025 747 738 — 702
Recordxtechnologies, LLC
One stop L + 5.50%
(a)
6.50% 12/2025 42 41 — 37
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 11,474 11,470 0.5 10,556
RegEd Aquireco, LLC
Senior loan L + 4.25%
(a)(f)
5.43% 12/2024 236 235 — 216
RegEd Aquireco, LLC (5)
Senior loan L + 4.25%
N/A (6)
12/2024 — (5) — —
Saba Software, Inc. ^*#+~
Senior loan L + 4.50%
(a)
5.50% 05/2023 48,926 49,814 2.5 48,926
Saba Software, Inc. +~
Senior loan L + 4.50%
(a)
5.50% 05/2023 10,953 11,064 0.6 10,953
Saba Software, Inc. (5)
Senior loan L + 4.50%
N/A (6)
05/2023 — (1) — —
SnapLogic, Inc.
One stop L + 8.75%
(c)
5.75% cash/5.50% PIK 09/2024 5,816 5,740 0.3 5,580
SnapLogic, Inc. (5)
One stop L + 3.25%
N/A (6)
09/2024 — — — (3)
SnapLogic, Inc. (5)
One stop L + 3.25%
N/A (6)
09/2024 — — — (1)
Sontatype, Inc. !
One stop L + 6.75%
(a)
7.52% 12/2025 851 842 — 808
Sontatype, Inc. (5)
One stop L + 6.75%
N/A (6)
12/2025 — (3) — (7)
Caliper Software, Inc. #!~
One stop L + 5.50%
(c)(f)
6.57% 11/2025 28,075 28,561 1.4 26,952
See Notes to Consolidated Financial Statements.
16
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Caliper Software, Inc.
One stop L + 5.50%
(b)
6.60% 11/2023 $ 350 $ 352 — % $ 336
Telesoft Holdings LLC ~
One stop L + 5.75%
(c)
7.20% 12/2025 909 890 0.1 891
Telesoft Holdings LLC
One stop L + 5.75%
(a)
6.75% 12/2025 61 59 — 59
TI Intermediate Holdings, LLC +
Senior loan L + 4.50%
(c)
5.95% 12/2024 3,534 3,599 0.2 3,358
TI Intermediate Holdings, LLC
Senior loan L + 4.50%
(a)(f)
5.65% 12/2024 48 48 — 46
Transact Holdings, Inc. +~
Senior loan L + 4.75%
(a)
5.74% 04/2026 3,094 3,141 0.1 2,398
Transaction Data Systems, Inc. *#+!~
One stop L + 5.25%
(c)
6.71% 06/2021 83,904 85,275 4.1 80,547
Transaction Data Systems, Inc.
One stop L + 5.25%
(a)(c)
6.71% 06/2021 300 302 — 288
Trintech, Inc. ^*#
One stop L + 6.00%
(c)
7.78% 12/2023 22,514 22,904 1.1 21,839
Trintech, Inc. ^#!
One stop L + 6.00%
(c)
7.78% 12/2023 9,336 9,549 0.5 9,055
Trintech, Inc.
One stop P + 5.00%
(c)(f)
8.19% 12/2023 300 301 — 292
True Commerce, Inc. ^*#~
One stop L + 5.75%
(c)
7.20% 11/2023 15,350 15,655 0.8 15,044
True Commerce, Inc. +(8)(9)
One stop L + 5.75%
(c)
7.20% 11/2023 2,589 2,693 0.1 2,535
True Commerce, Inc.
One stop L + 5.75%
(c)
7.20% 11/2023 914 951 0.1 896
True Commerce, Inc.
One stop L + 5.75%
(c)
7.12% 11/2023 150 149 — 148
Upserve, Inc. !~
One stop L + 6.50%
(e)
7.50% 07/2023 6,141 6,203 0.3 5,650
Upserve, Inc.
One stop L + 6.50%
(e)
7.50% 07/2023 1,451 1,504 0.1 1,335
Upserve, Inc. (5)
One stop L + 6.50%
N/A (6)
07/2023 — — — (4)
Vector CS Midco Limited & Cloudsense Ltd. !~(8)(9)(10)
One stop L + 8.05%
(c)
4.50% cash/3.55% PIK 05/2024 7,728 7,861 0.4 7,004
Vector CS Midco Limited & Cloudsense Ltd. (8)(9)(10)
One stop L + 8.05%
(c)
4.50% cash/3.55% PIK 05/2024 116 116 — 116
Velocity Technology Solutions, Inc. *#
One stop L + 6.00%
(c)
7.45% 12/2023 18,370 18,694 0.9 18,186
Velocity Technology Solutions, Inc.
One stop L + 6.00%
(d)
7.45% 12/2023 100 99 — 98
Vendavo, Inc. *!~
One stop L + 6.50%
(c)
8.11% 10/2022 35,547 35,500 1.8 34,836
Vendavo, Inc.
One stop P + 5.25%
(f)
8.50% 10/2022 1,579 1,575 0.1 1,547
Verisys Corporation *#
One stop L + 6.50%
(c)
7.95% 01/2023 8,511 8,664 0.4 8,000
Verisys Corporation
One stop L + 6.50%
(c)
7.73% 01/2023 40 39 — 32
Workforce Software, LLC !~
One stop L + 6.50%
(c)
8.11% 07/2025 27,059 27,831 1.3 25,976
Workforce Software, LLC (5)
One stop L + 6.50%
N/A (6)
07/2025 — (3) — —
1,613,264 1,629,487 79.0 1,545,273
Ecological
Pace Analytical Services, LLC *#!
One stop L + 5.25%
(a)
6.25% 09/2022 29,794 30,161 1.5 28,602
Pace Analytical Services, LLC ^#
One stop L + 5.25%
(a)
6.25% 09/2022 2,771 2,811 0.1 2,659
Pace Analytical Services, LLC #
One stop L + 5.25%
(a)
6.25% 09/2022 1,659 1,715 0.1 1,593
Pace Analytical Services, LLC *#
One stop L + 5.25%
(a)
6.25% 09/2022 1,527 1,552 0.1 1,465
Pace Analytical Services, LLC #
One stop L + 5.25%
(a)
6.25% 09/2022 1,270 1,282 0.1 1,220
Pace Analytical Services, LLC #
One stop L + 5.25%
(a)
6.25% 09/2022 1,229 1,269 0.1 1,180
Pace Analytical Services, LLC
One stop L + 5.25%
(a)
6.25% 09/2022 998 980 — 958
Pace Analytical Services, LLC *#
One stop L + 5.25%
(a)
6.25% 09/2022 680 690 — 654
Pace Analytical Services, LLC #
One stop L + 5.25%
(a)
6.25% 09/2022 562 581 — 540
Pace Analytical Services, LLC
One stop L + 5.25%
(a)
6.25% 09/2022 189 194 — 181
Pace Analytical Services, LLC
One stop L + 5.25%
(c)
6.47% 09/2022 150 149 — 138
WRE Holding Corp. *#
Senior loan L + 5.00%
(a)(c)
6.76% 01/2023 2,288 2,332 0.1 2,151
WRE Holding Corp. ~
Senior loan L + 5.00%
(a)(c)
6.76% 01/2023 945 979 0.1 887
See Notes to Consolidated Financial Statements.
17
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Ecological - (continued)
WRE Holding Corp.
Senior loan L + 5.00%
(a)(c)
6.76% 01/2023 $ 312 $ 324 — % $ 294
WRE Holding Corp.
Senior loan L + 5.00%
(a)(c)
6.46% 01/2023 54 55 — 50
44,428 45,074 2.2 42,572
Electronics
Appriss Holdings, Inc. #+~
One stop L + 5.50%
(a)
6.49% 06/2026 25,095 25,860 1.3 24,593
Appriss Holdings, Inc.
One stop L + 5.50%
(a)
6.49% 06/2025 202 198 — 194
Diligent Corporation *#+!
One stop L + 5.50%
(c)(d)
6.57% 04/2022 35,625 36,717 1.8 35,625
Diligent Corporation *~
One stop L + 5.50%
(c)(d)
6.57% 04/2022 25,737 25,578 1.3 25,737
Diligent Corporation #~
One stop L + 5.50%
(c)
6.95% 04/2022 12,474 12,717 0.7 12,474
Diligent Corporation ^*#
One stop L + 5.50%
(c)(d)
6.95% 04/2022 11,250 11,545 0.6 11,250
Diligent Corporation #
One stop L + 5.50%
(c)(d)
6.93% 04/2022 1,263 1,262 0.1 1,262
Diligent Corporation
One stop L + 5.50%
(d)
7.42% 04/2022 486 502 — 486
Diligent Corporation One stop L + 5.50%
(c)(d)
6.92% 04/2022 285 287 — 285
Diligent Corporation ~
One stop L + 5.50%
(c)(d)
6.57% 04/2022 100 100 — 100
Diligent Corporation ~
One stop L + 5.50%
(c)(d)
6.57% 04/2022 80 79 — 80
Diligent Corporation
One stop L + 5.50%
(d)
7.42% 04/2022 39 38 — 39
Diligent Corporation ~
One stop L + 5.50%
(c)(d)
6.57% 04/2022 35 35 — 35
Diligent Corporation
One stop L + 5.50%
N/A (6)
04/2022 — 21 — —
Episerver, Inc. !~(8)(9)
One stop L + 6.25%
(a)
6.25% 10/2024 20,646 20,995 1.0 19,453
Episerver, Inc. #~
One stop L + 6.00%
(a)
7.00% 10/2024 12,248 12,459 0.6 11,635
Episerver, Inc. (5)
One stop L + 6.00%
N/A (6)
10/2024 — (2) — (20)
ES Acquisition LLC
One stop L + 5.50%
(c)
7.18% 11/2025 667 654 — 633
ES Acquisition LLC
One stop L + 5.50%
(c)(d)
6.84% 11/2025 87 86 — 82
ES Acquisition LLC
One stop L + 5.50%
(c)
7.41% 11/2025 36 36 — 34
ES Acquisition LLC (5)
One stop L + 5.50%
N/A (6)
11/2025 — (2) — —
Gamma Technologies, LLC ^*#!~%&
One stop L + 5.00%
(a)
6.00% 06/2024 47,588 47,949 2.3 45,207
Gamma Technologies, LLC (5)
One stop L + 5.00%
N/A (6)
06/2024 — (1) — (10)
Red Dawn SEI Buyer, Inc. +
Senior loan L + 4.25%
(d)
5.32% 11/2025 756 747 — 695
Red Dawn SEI Buyer, Inc.
Senior loan L + 4.25%
(a)
5.25% 11/2025 111 110 — 102
Red Dawn SEI Buyer, Inc. (5)
Senior loan L + 4.25%
N/A (6)
11/2025 — (1) — (11)
Silver Peak Systems, Inc. !
One stop L + 7.00%
(a)
9.00% 04/2024 5,998 6,016 0.3 5,881
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 20,232 1.0 19,221
Sovos Compliance !
Second lien L + 12.00% 12.00% PIK 04/2025 9,390 9,655 0.5 9,390
Sovos Compliance *#
One stop L + 4.75%
(a)
5.75% 04/2024 1,902 1,963 0.1 1,864
Sovos Compliance
Second lien L + 12.00% 12.00% PIK 04/2025 1,270 1,312 0.1 1,270
Sovos Compliance *#
One stop L + 4.75%
(a)
5.75% 04/2024 768 793 — 752
Sovos Compliance
One stop L + 4.75%
(a)
5.75% 04/2024 198 196 — 194
Sovos Compliance
One stop L + 4.75%
(a)
5.75% 04/2024 85 83 — 83
Unison Software Holdings, Inc. ^+~
Senior loan P + 3.50%
(f)
6.75% 05/2023 3,789 3,816 0.2 3,675
Watchfire Enterprises, Inc.
Second lien L + 8.00%
(c)
9.06% 10/2021 9,435 9,386 0.5 9,151
247,259 251,421 12.4 241,443
See Notes to Consolidated Financial Statements.
18
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Finance
Institutional Shareholder Services *!~
Senior loan L + 4.50%
(c)(d)
5.57% 03/2026 $ 18,870 $ 19,291 0.9 % $ 18,116
Institutional Shareholder Services
Senior loan L + 4.50%
(c)(d)
5.56% 03/2024 200 196 — 184
19,070 19,487 0.9 18,300
Grocery
Teasdale Quality Foods, Inc. %&
Senior loan L + 5.75%
(a)
6.75% 04/2021 3,827 3,608 0.2 3,597
Teasdale Quality Foods, Inc. %&
Senior loan L + 5.75%
(a)
6.75% 04/2021 3,094 2,916 0.2 2,909
Teasdale Quality Foods, Inc. %&
Senior loan L + 5.75%
(a)
6.75% 04/2021 518 488 — 486
Teasdale Quality Foods, Inc. %
Senior loan L + 5.75%
(a)
6.75% 04/2021 387 367 — 364
Teasdale Quality Foods, Inc.+ Senior loan L + 5.75%
(a)
6.75% 04/2021 262 260 — 246
Teasdale Quality Foods, Inc. %&
Senior loan L + 5.75%
(a)
6.75% 04/2021 192 181 — 180
8,280 7,820 0.4 7,782
Healthcare, Education and Childcare
ACP Ulysses Buyer, Inc. +!
Senior loan L + 5.00%
(c)(d)
6.07% 02/2026 13,276 13,146 0.7 12,746
Active Day, Inc. #
One stop L + 6.50%
(d)
7.57% 12/2021 24,695 24,964 1.1 21,731
Active Day, Inc. ^#
One stop L + 6.50%
(d)
7.57% 12/2021 1,905 1,928 0.1 1,678
Active Day, Inc. *#
One stop L + 6.50%
(d)
7.57% 12/2021 1,228 1,244 0.1 1,081
Active Day, Inc.
One stop L + 6.50%
(d)
7.57% 12/2021 978 1,008 — 861
Active Day, Inc.
One stop L + 6.50%
(d)
7.57% 12/2021 863 857 — 759
Active Day, Inc. *#
One stop L + 6.50%
(d)
7.57% 12/2021 848 859 — 746
Active Day, Inc.
One stop L + 6.50%
(d)
7.57% 12/2021 102 102 — 90
Active Day, Inc.
One stop L + 6.50%
(d)
N/A (6)
12/2021 — — — —
Acuity Eyecare Holdings, LLC One stop L + 6.25%
(c)
7.99% 03/2024 7,147 7,184 0.3 6,646
Acuity Eyecare Holdings, LLC #
One stop L + 6.25%
(c)
7.70% 03/2024 5,990 6,073 0.3 5,571
Acuity Eyecare Holdings, LLC ~
One stop L + 6.25%
(c)
7.70% 03/2024 5,615 5,738 0.3 5,222
Acuity Eyecare Holdings, LLC ^~
One stop L + 6.25%
(c)
7.70% 03/2024 3,277 3,393 0.2 3,046
Acuity Eyecare Holdings, LLC
One stop L + 6.25%
(c)
7.70% 03/2024 793 819 — 737
Acuity Eyecare Holdings, LLC
One stop L + 6.25%
(c)
7.70% 03/2024 197 188 — 183
Acuity Eyecare Holdings, LLC
One stop L + 6.25%
(c)
7.62% 03/2023 150 149 — 139
ADCS Clinics Intermediate Holdings, LLC *#!
One stop L + 5.75%
(c)(d)
6.82% 05/2022 42,093 42,632 2.0 39,987
ADCS Clinics Intermediate Holdings, LLC *#
One stop L + 5.75%
(c)(d)
6.82% 05/2022 212 214 — 200
ADCS Clinics Intermediate Holdings, LLC
One stop L + 5.75%
(a)(d)
6.79% 05/2022 200 200 — 190
ADCS Clinics Intermediate Holdings, LLC *
One stop L + 5.75%
(c)(d)
6.82% 05/2022 164 166 — 156
ADCS Clinics Intermediate Holdings, LLC *#
One stop L + 5.75%
(c)(d)
6.82% 05/2022 62 63 — 60
Advanced Pain Management Holdings, Inc. +(7)%
Senior loan L + 5.00%
(a)
6.25% 04/2020 11,433 6,860 0.3 5,817
Advanced Pain Management Holdings, Inc. (7)
Senior loan L + 8.50%
(a)
9.75% 04/2020 4,082 7 — 7
Advanced Pain Management Holdings, Inc. (7)
Senior loan L + 5.00%
(a)
6.25% 04/2020 928 557 — 471
Advanced Pain Management Holdings, Inc. +(7)%
Senior loan L + 5.00%
(a)
6.25% 04/2020 782 469 — 398
Agilitas USA, Inc. *#
One stop L + 5.50%
(c)
7.41% 04/2022 10,153 10,191 0.5 9,139
Agilitas USA, Inc.
One stop L + 5.50%
(c)
7.04% 04/2022 100 100 — 86
Apothecary Products, LLC +
Senior loan L + 4.25%
(c)
6.03% 07/2023 2,904 3,028 0.1 2,643
Apothecary Products, LLC
Senior loan L + 4.25%
(c)
5.25% 07/2023 782 782 — 711
Aris Teleradiology Company, LLC +(7)
Senior loan L + 5.50%
(c)(d)
7.41% 03/2021 5,403 3,236 — —
Aris Teleradiology Company, LLC (7)
Senior loan L + 5.50%
(c)(d)
7.26% 03/2021 1,087 686 — —
See Notes to Consolidated Financial Statements.
19
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
Aris Teleradiology Company, LLC (7)
Senior loan L + 5.50%
(c)(d)
7.41% 03/2021 $ 320 $ 320 — % $ —
Aspen Medical Products, LLC +~
One stop L + 5.25%
(a)
6.88% 06/2025 4,555 4,630 0.2 4,190
Aspen Medical Products, LLC
One stop L + 5.25%
(c)
6.50% 06/2025 34 34 — 32
Belmont Instrument, LLC +
Senior loan L + 4.75%
(d)
5.82% 12/2023 5,283 5,232 0.3 5,019
BIO18 Borrower, LLC !
One stop L + 5.25%
(c)
7.03% 11/2024 11,131 11,171 0.6 10,908
BIO18 Borrower, LLC *
One stop L + 5.25%
(c)
7.03% 11/2024 3,981 3,945 0.2 3,904
BIO18 Borrower, LLC
One stop L + 5.25%
(c)
6.55% 11/2024 210 210 — 206
BIO18 Borrower, LLC (5)
One stop L + 5.25%
(c)
N/A (6)
11/2024 — (1) — (18)
BIOVT, LLC ^*#
One stop L + 5.75%
(a)
6.75% 01/2021 34,307 34,700 1.7 33,621
BIOVT, LLC #~
One stop L + 5.75%
(a)
6.75% 01/2021 2,084 2,135 0.1 2,042
BIOVT, LLC *
One stop L + 5.75%
(a)
6.75% 01/2021 1,956 2,004 0.1 1,917
BIOVT, LLC
One stop L + 5.75%
(c)
6.87% 01/2021 120 120 — 116
BIOVT, LLC (5)
One stop L + 5.75%
N/A (6)
01/2021 — — — (24)
Blades Buyer, Inc. +~
Senior loan L + 4.50%
(c)(f)
6.00% 08/2025 3,839 3,860 0.2 3,686
Blades Buyer, Inc.
Senior loan L + 4.50%
(a)
5.50% 08/2025 90 90 — 86
Blades Buyer, Inc. (5)
Senior loan L + 4.50%
N/A (6)
08/2025 — (6) — (39)
CMI Parent Inc. +~
Senior loan L + 4.25%
(c)
5.95% 08/2025 6,667 6,805 0.3 6,333
CMI Parent Inc.
Senior loan L + 4.25%
(a)(c)
5.25% 08/2025 300 298 — 286
CRH Healthcare Purchaser, Inc. +~
Senior loan L + 4.50%
(c)
5.95% 12/2024 13,111 13,290 0.6 12,587
CRH Healthcare Purchaser, Inc. (5)
Senior loan L + 4.50%
N/A (6)
12/2024 — (1) — (12)
CRH Healthcare Purchaser, Inc. (5)
Senior loan L + 4.50%
N/A (6)
12/2024 — (2) — (167)
DCA Investment Holding, LLC ^*#+
One stop L + 5.25%
(d)
6.32% 07/2021 31,571 31,913 1.5 28,414
DCA Investment Holding, LLC ^*#+!~
One stop L + 5.25%
(d)
6.33% 07/2021 27,355 27,774 1.3 24,618
DCA Investment Holding, LLC *#
One stop L + 5.25%
(d)
6.32% 07/2021 8,362 8,540 0.4 7,525
DCA Investment Holding, LLC ~
One stop L + 5.25%
(d)
6.32% 07/2021 4,054 4,175 0.2 3,649
DCA Investment Holding, LLC ~
One stop L + 5.25%
(d)
6.32% 07/2021 3,687 3,798 0.2 3,318
DCA Investment Holding, LLC
One stop L + 5.25%
(a)
6.25% 07/2021 2,729 2,725 0.1 2,449
DCA Investment Holding, LLC *~
One stop L + 5.25%
(d)
6.32% 07/2021 2,524 2,600 0.1 2,272
DCA Investment Holding, LLC #
One stop L + 5.25%
(d)
6.32% 07/2021 1,256 1,276 0.1 1,131
DCA Investment Holding, LLC *~
One stop L + 5.25%
(d)
6.32% 07/2021 298 302 — 268
DCA Investment Holding, LLC *~
One stop L + 5.25%
(d)
6.32% 07/2021 94 94 — 84
Deca Dental Management LLC ^*#
One stop L + 6.00%
(c)
7.45% 12/2021 11,231 11,475 0.5 10,109
Deca Dental Management LLC #~
One stop L + 6.00%
(c)
7.45% 12/2021 1,379 1,408 0.1 1,241
Deca Dental Management LLC +~
One stop L + 6.00%
(c)
7.45% 12/2021 994 1,016 — 895
Deca Dental Management LLC
One stop L + 6.00%
(c)
7.45% 12/2021 737 761 — 664
Deca Dental Management LLC
One stop L + 6.00%
(c)
7.45% 12/2021 100 101 — 90
Deca Dental Management LLC
One stop L + 6.00%
N/A (6)
12/2021 — — — —
Elite Dental Partners LLC *#
One stop L + 5.25%
(d)
6.32% 06/2023 14,162 14,033 0.6 11,046
Elite Dental Partners LLC
One stop L + 5.25%
(d)
6.32% 06/2023 1,878 1,866 0.1 1,464
Elite Dental Partners LLC #
One stop L + 5.25%
(d)
6.32% 06/2023 1,760 1,749 0.1 1,372
Elite Dental Partners LLC +~
One stop L + 5.25%
(d)
6.32% 06/2023 1,678 1,669 0.1 1,309
Elite Dental Partners LLC #~
One stop L + 5.25%
(d)
6.32% 06/2023 1,608 1,599 0.1 1,254
Elite Dental Partners LLC
One stop L + 5.25%
(c)(d)
6.32% 06/2023 200 199 — 156
See Notes to Consolidated Financial Statements.
20
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
Elite Dental Partners LLC
One stop L + 5.25%
(d)
6.32% 06/2023 $ 19 $ 14 — % $ 15
ERG Buyer, LLC *#
One stop L + 5.50%
(c)
6.95% 05/2024 19,231 19,174 0.9 17,308
ERG Buyer, LLC
One stop P + 4.50%
(f)
7.75% 05/2024 300 294 — 270
ERG Buyer, LLC (5)
One stop L + 5.50%
N/A (6)
05/2024 — (8) — —
eSolutions, Inc. ^*#+!~
One stop L + 6.50%
(a)
7.50% 03/2022 73,854 74,780 3.7 72,379
eSolutions, Inc.
One stop L + 6.50%
(a)
7.50% 03/2022 150 150 — 148
Excelligence Learning Corporation ^#
One stop L + 6.00%
(a)(c)
7.07% 04/2023 10,143 9,833 0.4 7,608
Eyecare Services Partners Holdings LLC +
One stop L + 6.25%
(c)
7.70% 05/2023 18,322 18,429 0.9 16,856
Eyecare Services Partners Holdings LLC *
One stop L + 6.25%
(c)
7.70% 05/2023 8,036 8,187 0.4 7,393
Eyecare Services Partners Holdings LLC *#
One stop L + 6.25%
(c)
7.70% 05/2023 7,038 7,178 0.3 6,475
Eyecare Services Partners Holdings LLC *+
One stop L + 6.25%
(c)
7.70% 05/2023 2,403 2,450 0.1 2,211
Eyecare Services Partners Holdings LLC
One stop L + 6.25%
(c)
7.70% 05/2023 2,088 2,120 0.1 1,925
Eyecare Services Partners Holdings LLC *
One stop L + 6.25%
(c)
7.70% 05/2023 1,542 1,573 0.1 1,419
Eyecare Services Partners Holdings LLC *#
One stop L + 6.25%
(c)
7.70% 05/2023 1,141 1,163 0.1 1,049
Eyecare Services Partners Holdings LLC *#
One stop L + 6.25%
(c)
7.70% 05/2023 1,004 1,025 0.1 925
Eyecare Services Partners Holdings LLC *+
One stop L + 6.25%
(c)
7.70% 05/2023 649 659 — 597
Eyecare Services Partners Holdings LLC
One stop L + 6.25%
(c)
7.87% 05/2023 400 398 — 368
FYI Optical Acquisitions, Inc. & FYI USA, Inc. ~(8)(9)(14)
One stop L + 4.50% 6.24% 03/2027 11,891 11,773 0.5 10,185
FYI Optical Acquisitions, Inc. & FYI USA, Inc. (5)(8)(9)(14)
One stop L + 4.50%
N/A (6)
03/2027 — (3) — (18)
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 11,207 11,206 0.5 10,311
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)
6.45% 06/2021 3,576 3,631 0.2 3,138
Joerns Healthcare, LLC ^*%
One stop L + 6.00%
(c)
7.12% 08/2024 1,873 1,820 0.1 1,797
Joerns Healthcare, LLC ^*%
One stop L + 6.00%
(c)
7.12% 08/2024 1,800 1,769 0.1 1,728
Katena Holdings, Inc. ^#
One stop L + 6.00%
(d)
7.07% 06/2021 12,796 12,912 0.6 12,028
Katena Holdings, Inc. ^#
One stop L + 6.00%
(d)
7.07% 06/2021 1,250 1,261 0.1 1,175
Katena Holdings, Inc. +
One stop L + 6.00%
(d)
7.07% 06/2021 934 927 — 878
Katena Holdings, Inc. #
One stop L + 6.00%
(d)
7.07% 06/2021 855 863 — 805
Katena Holdings, Inc.
One stop L + 6.00%
(a)(f)
7.36% 06/2021 200 201 — 188
Krueger-Gilbert Health Physics, LLC !~
Senior loan L + 5.25%
(c)
6.70% 05/2025 2,371 2,357 0.1 2,205
Krueger-Gilbert Health Physics, LLC !
Senior loan L + 5.25%
(c)
6.70% 05/2025 1,119 1,162 0.1 1,041
Krueger-Gilbert Health Physics, LLC
Senior loan L + 5.25%
(c)
6.70% 05/2025 420 418 — 391
Krueger-Gilbert Health Physics, LLC
Senior loan L + 5.25%
(c)
6.48% 05/2025 50 50 — 44
Lombart Brothers, Inc. ^*#~
One stop L + 6.25%
(c)
7.70% 04/2023 29,106 29,481 1.4 28,230
Lombart Brothers, Inc. ^#(8)(9)
One stop L + 6.25%
(c)
7.70% 04/2023 3,133 3,174 0.2 3,040
Lombart Brothers, Inc.
One stop L + 6.25%
(c)
7.25% 04/2023 280 279 — 272
Lombart Brothers, Inc. (8)(9)
One stop L + 6.25%
(a)(c)
7.25% 04/2023 50 49 — 48
MD Now Holdings, Inc. +!
One stop L + 5.00%
(d)
6.07% 08/2024 14,616 14,792 0.7 14,032
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)
6.45% 08/2024 300 299 — 288
MWD Management, LLC & MWD Services, Inc .#+
One stop L + 5.25%
(c)
6.70% 06/2023 7,053 7,040 0.3 6,488
MWD Management, LLC & MWD Services, Inc. ^#
One stop L + 5.25%
(c)
6.70% 06/2023 4,540 4,633 0.2 4,177
See Notes to Consolidated Financial Statements.
21
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
MWD Management, LLC & MWD Services, Inc.
One stop L + 5.25%
(c)
6.36% 06/2022 $ 160 $ 159 — % $ 148
MWD Management, LLC & MWD Services, Inc. (5)
One stop L + 5.25%
N/A (6)
06/2023 — — — (12)
Oliver Street Dermatology Holdings, LLC #(7)
One stop L + 6.25%
(c)
7.70% 05/2022 19,295 17,731 0.5 10,062
Oliver Street Dermatology Holdings, LLC *#(7)
One stop L + 6.25%
(c)
8.19% 05/2022 2,239 1,926 0.1 1,168
Oliver Street Dermatology Holdings, LLC (7)
One stop L + 6.25%
(c)
8.19% 05/2022 2,122 1,941 0.1 1,106
Oliver Street Dermatology Holdings, LLC ^+(7)
One stop L + 6.25%
(c)
8.19% 05/2022 1,606 1,382 — 838
Oliver Street Dermatology Holdings, LLC *+(7)
One stop L + 6.25%
(c)
7.70% 05/2022 1,419 1,220 — 740
Oliver Street Dermatology Holdings, LLC *+(7)
One stop L + 6.25%
(c)
7.70% 05/2022 1,235 1,063 — 645
Oliver Street Dermatology Holdings, LLC ^+(7)
One stop L + 6.25%
(c)
8.19% 05/2022 962 828 — 501
Oliver Street Dermatology Holdings, LLC *+(7)
One stop L + 6.25%
(c)
7.70% 05/2022 834 717 — 435
Oliver Street Dermatology Holdings, LLC +(7)
One stop L + 6.25%
(c)
8.19% 05/2022 515 442 — 268
Oliver Street Dermatology Holdings, LLC (7)
One stop L + 6.25%
(c)(f)
8.19% 05/2022 290 267 — 152
Oliver Street Dermatology Holdings, LLC ^#(7)
One stop L + 6.25%
(c)
8.19% 05/2022 98 89 — 50
Oliver Street Dermatology Holdings, LLC *#(7)
One stop L + 6.25%
(c)
7.70% 05/2022 88 81 — 46
Oliver Street Dermatology Holdings, LLC ^#(7)
One stop L + 6.25%
(c)
7.70% 05/2022 70 63 — 36
Oliver Street Dermatology Holdings, LLC ^#(7)
One stop L + 6.25%
(c)
7.70% 05/2022 62 59 — 34
ONsite Mammography, LLC ~
One stop L + 6.00%
(d)
7.07% 11/2023 7,688 7,730 0.4 7,379
ONsite Mammography, LLC
One stop L + 6.00%
(a)
7.00% 11/2023 80 82 — 76
ONsite Mammography, LLC
One stop L + 6.00%
(a)(d)
7.04% 11/2023 29 28 — 28
Pinnacle Treatment Centers, Inc. #
One stop L + 6.25%
(c)
8.03% 01/2023 19,230 19,430 1.0 18,653
Pinnacle Treatment Centers, Inc. *
One stop L + 6.25%
(c)
8.03% 01/2023 7,832 7,759 0.4 7,597
Pinnacle Treatment Centers, Inc. #
One stop L + 6.25%
(c)
8.03% 01/2023 1,578 1,585 0.1 1,531
Pinnacle Treatment Centers, Inc. +~
One stop L + 6.25%
(c)
8.03% 01/2023 713 721 — 692
Pinnacle Treatment Centers, Inc.
One stop P + 5.00%
(c)(f)
8.23% 01/2023 231 231 — 224
Pinnacle Treatment Centers, Inc.
One stop L + 6.25%
(c)
8.03% 01/2023 188 190 — 182
Pinnacle Treatment Centers, Inc. ^
One stop L + 6.25%
(c)
8.03% 01/2023 108 110 — 104
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%
(a)
7.58% cash/0.75% PIK 12/2022 24,518 22,615 1.1 20,833
PPT Management Holdings, LLC
One stop L + 6.75%
(a)(c)
7.02% cash/0.75% PIK 12/2022 416 388 — 354
PPT Management Holdings, LLC
One stop L + 6.75%
(a)
7.58% cash/0.75% PIK 12/2022 302 288 — 256
PPT Management Holdings, LLC
One stop L + 6.75%
(a)
7.58% cash/0.75% PIK 12/2022 178 170 — 152
PPT Management Holdings, LLC
One stop L + 6.75%
(a)
7.58% cash/0.75% PIK 12/2022 86 77 — 74
Pyramid Healthcare, Inc. *+%&
One stop L + 6.50%
(c)
8.11% 08/2020 15,061 15,059 0.8 14,760
Pyramid Healthcare, Inc.
One stop L + 6.50%
(c)(f)
7.99% 08/2020 719 719 — 704
Pyramid Healthcare, Inc.
One stop L + 6.50%
(c)
8.24% 08/2020 463 463 — 454
Pyramid Healthcare, Inc.
One stop L + 6.50%
(c)
8.24% 08/2020 335 340 — 328
Pyramid Healthcare, Inc. %&
One stop L + 6.50%
(c)
8.11% 08/2020 292 292 — 286
Pyramid Healthcare, Inc.
One stop L + 6.50%
(c)
8.08% 08/2020 112 112 — 110
Pyramid Healthcare, Inc.
One stop L + 6.50%
(a)(c)
7.57% 08/2020 45 45 — 44
Riverchase MSO, LLC *#
Senior loan L + 5.25%
(c)
6.70% 10/2022 9,670 9,821 0.5 8,800
Riverchase MSO, LLC
Senior loan P + 4.25%
(c)(f)
7.24% 10/2022 130 130 — 118
RXH Buyer Corporation ^*#!
One stop L + 5.75%
(c)
7.20% 09/2021 27,668 27,948 1.4 27,116
RXH Buyer Corporation *#
One stop L + 5.75%
(c)
7.20% 09/2021 3,131 3,164 0.2 3,068
See Notes to Consolidated Financial Statements.
22
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
RXH Buyer Corporation
One stop L + 5.75%
(c)
7.20% 09/2021 $ 400 $ 402 — % $ 392
Sage Dental Management, LLC (7)%
One stop L + 6.25%
(c)
7.16% cash/1.00% PIK 12/2020 4,334 3,971 0.2 3,033
Sage Dental Management, LLC (7)
One stop L + 6.25%
(c)
8.16% 12/2020 70 64 — 49
Sage Dental Management, LLC (7)
One stop L + 6.25%
(c)
8.16% 12/2020 63 58 — 44
Sage Dental Management, LLC (7)%
One stop L + 6.25%
(c)
8.16% 12/2020 45 41 — 31
SLMP, LLC ^#
One stop L + 6.00%
(d)
7.07% 05/2023 12,012 12,101 0.6 11,771
SLMP, LLC ^#
One stop L + 6.00%
(d)
7.07% 05/2023 5,782 5,996 0.3 5,667
SLMP, LLC
One stop L + 6.00%
(d)
7.07% 05/2023 1,503 1,499 0.1 1,467
SLMP, LLC
Subordinated debt N/A 7.50% PIK 05/2027 223 229 — 223
SLMP, LLC
One stop P + 5.00%
(f)
8.25% 05/2023 100 99 — 96
Summit Behavioral Healthcare, LLC ^#&
Senior loan L + 4.75%
(c)
6.36% 10/2023 20,703 20,438 1.0 19,047
Summit Behavioral Healthcare, LLC
Senior loan L + 4.75%
(c)
6.36% 10/2023 432 434 — 398
Summit Behavioral Healthcare, LLC
Senior loan L + 4.75%
(c)
6.31% 10/2023 300 296 — 276
WHCG Management, LLC *#%&
Senior loan L + 4.75%
(d)
5.82% 03/2023 16,151 16,265 0.8 15,182
WHCG Management, LLC
Senior loan L + 4.75%
(d)
5.82% 03/2023 5,655 5,610 0.3 5,315
WHCG Management, LLC
Senior loan L + 4.75%
(d)
5.82% 03/2023 1,994 1,986 0.1 1,874
WHCG Management, LLC
Senior loan L + 4.75%
(d)
5.82% 03/2023 340 338 — 320
WHCG Management, LLC
Senior loan P + 3.75%
(c)(f)
7.00% 03/2023 196 199 — 184
831,697 820,513 38.0 744,684
Home and Office Furnishings, Housewares, and Durable Consumer
1A Smart Start LLC +~%&
Senior loan L + 4.50%
(c)
5.57% 02/2022 6,229 6,246 0.3 5,793
CST Buyer Company ^+~
One stop L + 5.75%
(d)
6.82% 10/2025 10,974 10,861 0.5 10,316
CST Buyer Company
One stop L + 5.75%
(d)
6.82% 10/2025 38 38 — 35
Plano Molding Company, LLC ^+
One stop L + 7.50%
(c)
8.95% 05/2021 14,674 14,641 0.7 12,473
31,915 31,786 1.5 28,617
Hotels, Motels, Inns, and Gaming
Davidson Hotel Company, LLC +
One stop L + 5.25%
(a)
6.25% 07/2024 8,502 8,442 0.3 6,376
Davidson Hotel Company, LLC
One stop L + 5.25%
(a)
6.25% 07/2024 1,075 1,075 0.1 806
Davidson Hotel Company, LLC
One stop L + 5.25%
(a)
6.25% 07/2024 100 100 — 76
Davidson Hotel Company, LLC (5)
One stop L + 5.25%
N/A (6)
07/2024 — (12) — —
9,677 9,605 0.4 7,258
Insurance
Captive Resources Midco, LLC ^*#+~
One stop L + 6.00%
(a)
7.00% 05/2025 54,631 54,828 2.8 54,631
Captive Resources Midco, LLC
One stop L + 6.00%
(c)
7.00% 05/2025 1,727 1,705 0.1 1,727
Captive Resources Midco, LLC #
One stop L + 6.00%
(a)
7.00% 05/2025 1,447 1,433 0.1 1,447
Integrity Marketing Acquisition, LLC +~
Senior loan L + 5.75%
(c)
7.39% 08/2025 2,483 2,484 0.1 2,433
Integrity Marketing Acquisition, LLC
Senior loan L + 5.75%
(c)
7.59% 08/2025 793 789 — 777
Integrity Marketing Acquisition, LLC
Senior loan L + 5.75%
(c)
7.47% 08/2025 480 477 — 470
Integrity Marketing Acquisition, LLC
Senior loan L + 5.75%
(c)
7.26% 08/2025 35 34 — 31
Integrity Marketing Acquisition, LLC
Senior loan L + 5.75%
(c)
6.97% 08/2025 30 28 — 28
J.S. Held Holdings, LLC #+~
One stop L + 6.00%
(c)(d)
7.07% 07/2025 3,631 3,635 0.2 3,342
J.S. Held Holdings, LLC
One stop L + 6.00%
(c)
7.22% 07/2025 232 226 — 200
J.S. Held Holdings, LLC (5)
One stop L + 6.00%
N/A (6)
07/2025 — (29) — (236)
See Notes to Consolidated Financial Statements.
23
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Insurance - (continued)
Orchid Underwriters Agency, LLC +~
Senior loan L + 4.50%
(c)
5.57% 12/2024 $ 4,209 $ 4,268 0.2 % $ 3,873
Orchid Underwriters Agency, LLC
Senior loan L + 4.50%
(c)
5.62% 12/2024 38 38 — 36
Orchid Underwriters Agency, LLC (5)
Senior loan L + 4.50%
N/A (6)
12/2024 — (1) — (80)
RSC Acquisition, Inc. +~
One stop L + 5.50%
(c)
7.26% 10/2026 24,088 23,633 1.2 23,124
RSC Acquisition, Inc. (5)
One stop L + 5.50%
N/A (6)
10/2026 — (1) — (3)
RSC Acquisition, Inc. (5)
One stop L + 5.50%
(c)
N/A (6)
10/2026 — (8) — (16)
93,824 93,539 4.7 91,784
Leisure, Amusement, Motion Pictures, Entertainment
CR Fitness Holdings, LLC +~
Senior loan L + 4.00%
(c)
5.45% 07/2025 2,009 2,022 0.1 1,768
CR Fitness Holdings, LLC
Senior loan L + 4.00%
(c)(f)
5.00% 07/2025 269 263 — 237
CR Fitness Holdings, LLC
Senior loan L + 4.00%
(c)(f)
5.18% 07/2025 74 74 — 66
EOS Fitness Opco Holdings, LLC *#
One stop L + 4.75%
(c)
6.20% 01/2025 8,719 8,846 0.4 8,022
EOS Fitness Opco Holdings, LLC
One stop L + 4.75%
(c)
6.20% 01/2025 667 679 — 594
EOS Fitness Opco Holdings, LLC
One stop P + 3.75%
(f)
7.00% 01/2025 120 120 — 110
PADI Holdco, Inc. *#
One stop L + 5.50%
(c)
7.12% 04/2024 21,942 22,179 1.0 20,186
PADI Holdco, Inc. +~(8)(9)
One stop E + 5.75%
(g)
5.50% 04/2024 20,782 21,132 1.0 18,479
PADI Holdco, Inc. ~
One stop L + 5.50%
(c)
6.50% 04/2024 801 794 — 747
PADI Holdco, Inc.
One stop L + 5.50%
(c)
6.77% 04/2023 298 299 — 274
PADI Holdco, Inc.
One stop L + 5.50%
(c)
6.97% 04/2024 166 164 — 154
Planet Fit Indy 10 LLC +
One stop L + 5.25%
(c)
6.70% 07/2025 17,473 17,369 0.8 16,250
Planet Fit Indy 10 LLC #
One stop L + 5.25%
(c)
6.99% 07/2025 2,331 2,385 0.1 2,168
Planet Fit Indy 10 LLC #
One stop L + 5.25%
(c)
6.70% 07/2025 1,265 1,258 0.1 1,177
Planet Fit Indy 10 LLC
One stop L + 5.25%
(c)
6.45% 07/2025 200 200 — 186
Self Esteem Brands, LLC ^*#%&
Senior loan L + 4.25%
(d)
5.32% 02/2022 45,841 46,319 2.2 42,632
Self Esteem Brands, LLC
Senior loan P + 3.25%
(f)
6.50% 02/2022 2,338 2,334 0.1 2,174
Sunshine Sub, LLC #~
One stop L + 4.75%
(a)
5.75% 05/2024 12,990 13,104 0.6 11,951
Sunshine Sub, LLC #
One stop L + 4.75%
(a)
5.75% 05/2024 5,682 5,892 0.3 5,228
Sunshine Sub, LLC
One stop L + 4.75%
(a)
5.75% 05/2024 200 199 — 184
Teaching Company, The *#
One stop L + 4.75%
(c)
6.46% 07/2023 17,878 18,087 0.9 16,448
Teaching Company, The
One stop L + 4.75%
(c)(d)(f)
6.33% 07/2023 190 190 — 174
Titan Fitness, LLC *#+
One stop L + 4.75%
(c)
6.50% 02/2025 30,471 30,961 1.4 28,033
Titan Fitness, LLC
One stop L + 4.75%
(c)
6.38% 02/2025 1,899 1,897 0.1 1,747
Titan Fitness, LLC
One stop L + 4.75%
(c)(f)
6.00% 02/2025 474 472 — 434
WBZ Investment LLC #
One stop L + 5.50%
(c)(d)
6.95% 09/2024 8,483 8,547 0.4 7,634
WBZ Investment LLC
One stop L + 5.50%
(a)(d)
6.50% 09/2024 1,215 1,206 0.1 1,094
WBZ Investment LLC
One stop L + 5.50%
(c)
6.95% 09/2024 844 877 0.1 760
WBZ Investment LLC
One stop L + 5.50%
(c)
6.95% 09/2024 432 448 — 389
WBZ Investment LLC
One stop L + 5.50%
(a)(c)
6.50% 09/2024 80 80 — 70
206,133 208,397 9.7 189,370
Oil and Gas
Drilling Info Holdings, Inc. *#+~
Senior loan L + 4.25%
(a)
5.24% 07/2025 36,763 37,297 1.8 34,156
Drilling Info Holdings, Inc. ~
Senior loan L + 4.50%
(a)
5.49% 07/2025 17,429 16,958 0.8 16,383
Drilling Info Holdings, Inc.
Senior loan L + 4.25%
(a)
5.15% 07/2023 150 148 — 136
See Notes to Consolidated Financial Statements.
24
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Oil and Gas - (continued)
Drilling Info Holdings, Inc.
Senior loan L + 4.50%
(a)
5.40% 07/2023 $ 64 $ 61 — % $ 59
Drilling Info Holdings, Inc. (5)
Senior loan L + 4.25%
N/A (6)
07/2023 — (6) — (73)
54,406 54,458 2.6 50,661
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC #
One stop L + 5.50%
(d)
6.57% 11/2023 10,428 10,558 0.5 9,384
Georgica Pine Clothiers, LLC *#
One stop L + 5.50%
(d)
6.59% 11/2023 6,537 6,625 0.3 5,882
Georgica Pine Clothiers, LLC +
One stop L + 5.50%
(d)
6.57% 11/2023 1,011 1,002 0.1 910
Georgica Pine Clothiers, LLC ^#
One stop L + 5.50%
(d)
6.57% 11/2023 909 923 0.1 818
Georgica Pine Clothiers, LLC *#
One stop L + 5.50%
(d)
6.57% 11/2023 638 648 — 575
Georgica Pine Clothiers, LLC
One stop L + 5.50%
(d)
6.69% 11/2023 236 236 — 212
IMPLUS Footwear, LLC +~
One stop L + 6.25%
(c)
7.70% 04/2024 30,316 30,772 1.4 27,285
IMPLUS Footwear, LLC +~
One stop L + 6.25%
(c)
7.70% 04/2024 5,178 5,255 0.2 4,660
IMPLUS Footwear, LLC *
One stop L + 6.25%
(c)
7.70% 04/2024 746 774 — 672
Orthotics Holdings, Inc. *#
One stop L + 6.00%
(e)
7.00% 05/2020 11,676 11,679 0.5 10,509
Orthotics Holdings, Inc. *#(8)(9)
One stop L + 6.00%
(e)
7.00% 05/2020 1,914 1,915 0.1 1,723
Orthotics Holdings, Inc. One stop L + 6.00%
N/A (6)
05/2020 — — — —
WU Holdco, Inc. #+~
One stop L + 5.50%
(c)
6.99% 03/2026 3,445 3,528 0.2 3,376
WU Holdco, Inc.
One stop L + 5.50%
(c)
7.19% 03/2026 393 394 — 384
WU Holdco, Inc.
One stop L + 5.50%
(c)
6.72% 03/2025 40 40 — 38
73,467 74,349 3.4 66,428
Personal, Food and Miscellaneous Services
Blue River Pet Care, LLC #+
One stop L + 5.00%
(d)
6.07% 07/2026 27,830 27,886 1.3 25,882
Blue River Pet Care, LLC
One stop L + 5.00%
(c)(d)
6.06% 08/2025 276 272 — 248
Blue River Pet Care, LLC (5)
One stop L + 5.00%
N/A (6)
07/2026 — (97) — (742)
Captain D's, LLC ^#%&
Senior loan L + 4.50%
(c)(d)
5.50% 12/2023 14,292 14,343 0.7 12,864
Captain D's, LLC
Senior loan P + 3.50%
(c)(f)
6.74% 12/2023 120 121 — 104
Encorevet Group LLC
Senior loan L + 5.00%
(c)
6.45% 11/2024 113 113 — 105
Encorevet Group LLC
Senior loan L + 5.00%
(c)
6.58% 11/2024 58 57 — 54
Encorevet Group LLC
Senior loan L + 5.00%
(c)
6.23% 11/2024 25 25 — 22
Encorevet Group LLC
Senior loan L + 5.00%
(c)
6.45% 11/2024 10 10 — 9
Encorevet Group LLC (5)
Senior loan L + 5.00%
N/A (6)
11/2024 — (3) — (22)
Imperial Optical Midco Inc. ~
One stop L + 5.25%
(b)
6.73% 08/2023 3,631 3,685 0.2 3,450
Imperial Optical Midco Inc. *
One stop L + 5.25%
(b)
6.51% 08/2023 2,832 2,808 0.1 2,690
Imperial Optical Midco Inc.
One stop L + 5.25%
(b)
6.62% 08/2023 1,925 1,978 0.1 1,829
Imperial Optical Midco Inc.
One stop L + 5.25%
(b)
6.51% 08/2023 1,253 1,288 0.1 1,191
Imperial Optical Midco Inc. *
One stop L + 5.25%
(b)
6.87% 08/2023 1,141 1,172 0.1 1,084
Imperial Optical Midco Inc.
One stop L + 5.25%
(b)
6.60% 08/2023 331 328 — 314
Imperial Optical Midco Inc.
One stop L + 5.25%
(b)
6.51% 08/2023 241 239 — 229
Imperial Optical Midco Inc.
One stop L + 5.25%
(b)
6.60% 08/2023 191 189 — 181
Imperial Optical Midco Inc.
One stop L + 5.25%
(b)
6.88% 08/2023 134 133 — 128
Imperial Optical Midco Inc.
One stop L + 5.25%
(b)
6.51% 08/2023 130 129 — 124
Imperial Optical Midco Inc.
One stop L + 5.25%
(b)
6.56% 08/2023 97 96 — 92
Imperial Optical Midco Inc.
One stop L + 5.25%
(b)
6.27% 08/2023 83 83 — 79
See Notes to Consolidated Financial Statements.
25
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Personal, Food and Miscellaneous Services
Imperial Optical Midco Inc.
One stop L + 5.25%
(b)(c)
6.26% 08/2023 $ 36 $ 35 — % $ 34
Imperial Optical Midco Inc.
One stop L + 5.25%
N/A (6)
08/2023 — — — —
Imperial Optical Midco Inc. (5)
One stop L + 5.25%
N/A (6)
08/2023 — (5) — —
Midwest Veterinary Partners, LLC +
One stop L + 6.00%
(d)
7.07% 07/2025 4,296 4,223 0.2 4,166
Midwest Veterinary Partners, LLC
One stop L + 4.75%
(d)
5.82% 07/2025 1,030 1,021 0.1 999
Midwest Veterinary Partners, LLC
One stop L + 6.00%
(a)
7.00% 07/2025 814 776 — 790
Midwest Veterinary Partners, LLC
One stop L + 4.75%
(d)
5.82% 07/2025 200 200 — 194
NVA Holdings, Inc. ~
Senior loan L + 3.50%
(c)
4.95% 02/2026 2,951 2,921 0.1 2,715
PPV Intermediate Holdings II, LLC
One stop L + 5.00%
(c)(d)
7.33% 05/2023 4,946 4,958 0.2 4,596
PPV Intermediate Holdings II, LLC
One stop P + 4.00%
(d)(f)
6.75% 05/2023 100 100 — 96
PPV Intermediate Holdings II, LLC
One stop N/A 7.90% PIK 05/2023 22 23 — 22
Ruby Slipper Cafe LLC, The *
One stop L + 7.50%
(c)
8.95% 01/2023 2,055 2,044 0.1 1,951
Ruby Slipper Cafe LLC, The
One stop L + 7.50%
(c)
8.62% 01/2023 302 319 — 287
Ruby Slipper Cafe LLC, The
One stop L + 7.50%
(c)
8.70% 01/2023 30 30 — 29
Southern Veterinary Partners, LLC *#~
One stop L + 5.50%
(d)
6.57% 05/2025 26,728 27,733 1.3 25,660
Southern Veterinary Partners, LLC
One stop L + 5.50%
(d)
6.57% 05/2025 211 209 — 203
Southern Veterinary Partners, LLC
One stop L + 5.50%
(c)
6.50% 05/2023 200 199 — 192
Southern Veterinary Partners, LLC
One stop L + 5.50%
(d)
6.57% 05/2025 192 190 — 184
Southern Veterinary Partners, LLC
One stop L + 5.50%
(d)
6.57% 05/2025 126 125 — 121
Southern Veterinary Partners, LLC
One stop L + 5.50%
(d)
6.57% 05/2025 121 120 — 116
Southern Veterinary Partners, LLC
One stop L + 5.50%
(d)
6.57% 05/2025 120 119 — 115
Southern Veterinary Partners, LLC
One stop L + 5.50%
(d)
6.57% 05/2025 114 113 — 109
Southern Veterinary Partners, LLC
One stop L + 5.50%
(d)
6.57% 05/2025 112 111 — 107
Southern Veterinary Partners, LLC (5)
One stop L + 5.50%
N/A (6)
05/2025 — (2) — —
Southern Veterinary Partners, LLC (5)
One stop L + 5.50%
N/A (6)
05/2025 — (25) — (80)
Veterinary Specialists of North America, LLC *#!
Senior loan L + 4.25%
(a)
5.24% 04/2025 41,864 43,434 2.0 39,770
Veterinary Specialists of North America, LLC
Senior loan L + 4.25%
(a)
5.18% 04/2025 3,348 3,343 0.2 2,754
Veterinary Specialists of North America, LLC #
Senior loan L + 4.25%
(a)
5.24% 04/2025 2,886 2,863 0.1 2,741
Veterinary Specialists of North America, LLC *
Senior loan L + 4.25%
(a)
5.24% 04/2025 1,452 1,508 0.1 1,379
Veterinary Specialists of North America, LLC
Senior loan L + 4.25%
(a)
5.05% 04/2025 835 832 0.1 793
Wetzel's Pretzels, LLC *#
One stop L + 6.75%
(c)
8.20% 09/2021 17,027 17,242 0.8 15,325
Wetzel's Pretzels, LLC
One stop L + 6.75%
(c)
7.93% 09/2021 100 101 — 90
166,931 169,715 7.9 155,373
Printing and Publishing
Brandmuscle, Inc. %&
Senior loan L + 4.75%
(d)
5.82% 12/2021 8,115 8,110 0.4 7,379
Brandmuscle, Inc. ^#
Senior loan L + 5.00%
(d)
6.07% 12/2021 1,132 1,151 0.1 1,037
Brandmuscle, Inc.
Senior loan L + 4.75%
(d)
5.82% 12/2021 34 34 — 26
Messenger, LLC +~
One stop L + 6.00%
(a)(c)(f)
7.16% 08/2023 9,098 9,196 0.4 8,462
Messenger, LLC
One stop P + 5.00%
(f)
8.25% 08/2023 32 32 — 28
Messenger, LLC (5)
One stop L + 6.00%
N/A (6)
08/2023 — (2) — —
18,411 18,521 0.9 16,932
Retail Stores
2nd Ave. LLC
One stop L + 5.50%
(d)
7.28% 09/2025 5,959 5,864 0.2 4,767
See Notes to Consolidated Financial Statements.
26
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Retail Stores - (continued)
2nd Ave. LLC
One stop L + 5.50%
(a)(c)
6.65% 09/2025 $ 50 $ 50 — % $ 40
Batteries Plus Holding Corporation #
One stop L + 6.75%
(a)(f)
7.75% 07/2022 21,980 22,276 1.0 20,222
Batteries Plus Holding Corporation
One stop P + 5.75%
(f)
9.00% 07/2022 250 249 — 226
Boot Barn, Inc. +~%&
Senior loan L + 4.50%
(c)
5.77% 06/2023 16,777 16,928 0.8 15,770
Cycle Gear, Inc. ^#+~
One stop L + 5.00%
(c)
6.45% 01/2024 23,953 23,963 1.1 21,559
DTLR, Inc. ^*#+
One stop L + 6.50%
(c)
8.28% 08/2022 41,599 42,155 2.0 39,519
Elite Sportswear, L.P. &
Senior loan L + 6.25%
(c)
7.70% 12/2021 9,199 8,988 0.4 7,635
Elite Sportswear, L.P. &
Senior loan L + 6.25%
(c)
7.70% 12/2021 3,698 3,616 0.2 3,069
Elite Sportswear, L.P. &
Senior loan L + 6.25%
(c)
7.70% 12/2021 1,903 1,861 0.1 1,580
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)(d)(f)
8.09% 12/2021 1,142 1,116 — 943
Elite Sportswear, L.P. *&
Senior loan L + 6.25%
(c)
7.70% 12/2021 632 619 — 524
Elite Sportswear, L.P. &
Senior loan L + 6.25%
(c)
7.70% 12/2021 289 282 — 240
Elite Sportswear, L.P. *&
Senior loan L + 6.25%
(c)
7.70% 12/2021 276 271 — 229
Elite Sportswear, L.P.
Senior loan P + 5.00%
(c)(d)(f)
8.10% 12/2021 40 39 — 34
Feeders Supply Company, LLC #
One stop L + 5.75%
(c)
7.20% 04/2021 8,640 8,747 0.4 8,209
Feeders Supply Company, LLC
Subordinated debt N/A 12.50% cash/7.00% PIK 04/2021 147 149 — 139
Feeders Supply Company, LLC
One stop L + 5.75%
(a)
6.75% 04/2021 50 50 — 46
Jet Equipment & Tools Ltd. +~(8)(9)(12)
One stop L + 5.75%
(a)
7.41% 11/2024 18,080 18,391 0.8 15,571
Jet Equipment & Tools Ltd. *#(8)(12)
One stop L + 5.75%
(a)
6.75% 11/2024 12,427 12,695 0.6 11,433
Jet Equipment & Tools Ltd. +~(8)(12)
One stop L + 5.75%
(a)
6.75% 11/2024 4,328 4,406 0.2 3,982
Jet Equipment & Tools Ltd. ~(8)(12)
One stop L + 5.75%
(a)
6.75% 11/2024 1,589 1,575 0.1 1,462
Jet Equipment & Tools Ltd. (5)(8)(9)(12)
One stop L + 5.75%
N/A (6)
11/2024 — (1) — (22)
Mills Fleet Farm Group LLC ^*#+!~&
One stop L + 7.00%
(d)
7.84% cash/0.75% PIK 10/2024 49,834 49,598 2.2 42,356
Pet Holdings ULC ^*#+!(8)(12)
One stop L + 5.50%
(c)
7.41% 07/2022 46,881 47,925 2.3 44,068
Pet Holdings ULC (8)(12)
One stop P + 4.50%
(f)
7.75% 07/2022 300 299 — 282
Pet Holdings ULC ^*#+(8)(12)
One stop L + 5.50%
(c)
7.41% 07/2022 242 244 — 226
Pet Supplies Plus, LLC *+
Senior loan L + 4.50%
(b)
6.16% 12/2024 14,253 14,515 0.7 13,541
Pet Supplies Plus, LLC
Senior loan L + 4.50%
(b)
5.50% 12/2023 224 223 — 212
PetPeople Enterprises, LLC ^#
One stop L + 5.75%
(d)
6.82% 09/2023 5,380 5,437 0.3 4,949
PetPeople Enterprises, LLC #
One stop L + 5.75%
(a)(d)
6.79% 09/2023 1,826 1,855 0.1 1,680
PetPeople Enterprises, LLC
One stop L + 5.75%
(a)(c)(d)
6.77% 09/2023 100 101 — 92
Sola Franchise, LLC and Sola Salon Studios, LLC #
One stop L + 5.25%
(d)
6.32% 10/2024 6,998 7,017 0.3 6,298
Sola Franchise, LLC and Sola Salon Studios, LLC #
One stop L + 5.25%
(d)
6.32% 10/2024 1,717 1,782 0.1 1,545
Sola Franchise, LLC and Sola Salon Studios, LLC
One stop L + 5.25%
(c)(f)
6.84% 10/2024 86 85 — 76
Sola Franchise, LLC and Sola Salon Studios, LLC (5)
One stop L + 5.25%
N/A (6)
10/2024 — (1) — (217)
Vermont Aus Pty Ltd !~(8)(9)(11)
One stop L + 5.25% 5.84% 12/2024 2,199 2,221 0.1 1,838
Vermont Aus Pty Ltd (8)(9)(11)
One stop L + 5.25% 5.84% 12/2024 41 42 — 17
303,089 305,632 14.0 274,140
Telecommunications
NetMotion Wireless Holdings, Inc. ^*#
One stop L + 5.75%
(c)
7.20% 10/2021 11,059 11,214 0.6 10,838
NetMotion Wireless Holdings, Inc. (5)
One stop L + 5.75%
N/A (6)
10/2021 — — — (2)
11,059 11,214 0.6 10,836
See Notes to Consolidated Financial Statements.
27
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Textiles and Leather
SHO Holding I Corporation !~
Senior loan L + 5.00%
(c)
6.78% 10/2022 $ 4,045 $ 4,034 0.1 % $ 3,641
SHO Holding I Corporation
Senior loan L + 4.00%
(a)(c)
5.73% 10/2022 48 46 — 48
SHO Holding I Corporation
Senior loan L + 4.00%
(a)(c)
5.00% 10/2021 28 27 — 16
4,121.0 $ 4,107 0.1 3,705
Utilities
Arcos, LLC #~
One stop L + 5.25%
(c)
6.70% 02/2021 14,592 14,783 0.7 14,300
Arcos, LLC (5)
One stop L + 5.25%
N/A (6)
02/2021 — — — (2)
14,592 14,783 0.7 14,298
Total non-controlled/non-affiliate company debt investments $ 4,394,956 $ 4,417,152 209.7 % $ 4,101,312
Equity investments (15)(16)
Aerospace and Defense
NTS Technical Systems
Common Stock N/A N/A N/A 2 $ 1,506 — % $ 148
NTS Technical Systems
Preferred stock N/A N/A N/A — 256 — 407
NTS Technical Systems
Preferred stock N/A N/A N/A — 128 — 231
Whitcraft LLC
Common Stock N/A N/A N/A 11 2,285 0.2 3,607
4,175 0.2 4,393
Automobile
Grease Monkey International, LLC
LLC units N/A N/A N/A 803 1,304 0.1 1,743
Polk Acquisition Corp.
LP interest N/A N/A N/A 5 314 — 63
Quick Quack Car Wash Holdings, LLC
LLC units N/A N/A N/A — 508 — 374
2,126 0.1 2,180
Beverage, Food and Tobacco
Benihana, Inc.
LLC units N/A N/A N/A 43 699 0.1 641
C. J. Foods, Inc.
Preferred stock N/A N/A N/A — 75 — 505
Cafe Rio Holding, Inc.
Common Stock N/A N/A N/A 5 603 — 594
Global ID Corporation
LLC interest N/A N/A N/A 5 603 0.1 723
Hopdoddy Holdings, LLC
LLC units N/A N/A N/A 44 217 — 79
Hopdoddy Holdings, LLC
LLC units N/A N/A N/A 20 61 — 23
Mendocino Farms, LLC
Common Stock N/A N/A N/A 169 770 — 714
Purfoods, LLC
LLC interest N/A N/A N/A 736 1,222 0.1 2,252
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 — 43
Wood Fired Holding Corp.
LLC units N/A N/A N/A 437 444 — 345
Wood Fired Holding Corp.
LLC units N/A N/A N/A 437 — — —
5,700 0.3 5,919
Buildings and Real Estate
Brooks Equipment Company, LLC
Common Stock N/A N/A N/A 10 1,021 0.1 1,940
Groundworks LLC
LLC units N/A N/A N/A — 121 — 85
Paradigm DKD Group, LLC #+!~%
Preferred stock N/A N/A N/A 354 115 — —
Paradigm DKD Group, LLC #+!~%
LLC units N/A N/A N/A 71 — — —
See Notes to Consolidated Financial Statements.
28
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Buildings and Real Estate - (continued)
Paradigm DKD Group, LLC #+!~%
LLC units N/A N/A N/A 2,004 $ — — % $ —
1,257 0.1 2,025
Chemicals, Plastics and Rubber
Flexan, LLC
Preferred stock N/A N/A N/A — 137 — 113
Flexan, LLC
LLC interest N/A N/A N/A 1 — — —
Inhance Technologies Holdings LLC
LLC units N/A N/A N/A — 124 — 26
261 — 139
Diversified/Conglomerate Manufacturing
Inventus Power, Inc.
Preferred stock N/A N/A N/A 1 372 — 14
Inventus Power, Inc.
LLC units N/A N/A N/A — 88 — 114
Inventus Power, Inc.
Preferred stock N/A N/A N/A — 20 — 38
Inventus Power, Inc.
Common Stock N/A N/A N/A 1 — — —
Reladyne, Inc.
LP units N/A N/A N/A 1 931 — 343
1,411 — 509
Diversified/Conglomerate Service
Accela, Inc.
LLC units N/A N/A N/A 670 418 — 111
Agility Recovery Solutions Inc.
LLC units N/A N/A N/A 97 604 0.1 681
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.
Preferred stock N/A N/A N/A 587 462 — 462
Astute Holdings, Inc.
LP interest N/A N/A N/A — 294 — 320
Calabrio, Inc.
Common Stock N/A N/A N/A 26 205 — 224
Centrify Corporation
LP interest N/A N/A N/A 1 691 — 221
Centrify Corporation
LP interest N/A N/A N/A 263 — — —
Cloudbees, Inc.
Preferred stock N/A N/A N/A 71 466 — 355
Cloudbees, Inc.
Warrant N/A N/A N/A 93 181 — 192
Confluence Technologies, Inc.
LLC interest N/A N/A N/A 3 412 — 498
Connexin Software, Inc.
LLC interest N/A N/A N/A 154 192 — 182
Convercent, Inc.
Warrant N/A N/A N/A 325 63 — 94
Digital Guardian, Inc.
Preferred stock N/A N/A N/A 356 434 — 331
Digital Guardian, Inc.
Warrant N/A N/A N/A 122 225 — 209
Digital Guardian, Inc.
Preferred stock N/A N/A N/A 74 142 — 127
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 — 45
DISA Holdings Acquisition Subsidiary Corp.
Common Stock N/A N/A N/A — 154 — 441
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 — 409
HealthcareSource HR, Inc.
LLC interest N/A N/A N/A — 621 0.1 783
HSI Halo Acquisition, Inc.
Preferred stock N/A N/A N/A — 288 — 250
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 — 279
Hydraulic Authority III Limited (8)(9)(10)
Common Stock N/A N/A N/A 6 43 — —
Internet Truckstop Group LLC
LP interest N/A N/A N/A 408 447 — 385
Kareo, Inc.
Warrant N/A N/A N/A 53 162 — 3
Kareo, Inc.
Preferred stock N/A N/A N/A 1 8 — 7
See Notes to Consolidated Financial Statements.
29
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
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 — 531
MetricStream, Inc.
Warrant N/A N/A N/A 168 263 — 183
Namely, Inc.
Warrant N/A N/A N/A 17 28 — 40
Net Health Acquisition Corp.
LP interest N/A N/A N/A 1 1,440 0.1 1,333
Nexus Brands Group, Inc.
LP interest N/A N/A N/A — 547 — 304
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH
Warrant N/A N/A N/A 4 9 — 9
Property Brands, Inc.
LLC units N/A N/A N/A 63 766 0.1 965
PCS Intermediate II Holdings, LLC
LLC units N/A N/A N/A — 367 — 340
Personify, Inc.
LLC units N/A N/A N/A 639 828 0.1 748
Pride Midco, Inc.
Preferred stock N/A N/A N/A 2 2,594 0.1 2,574
Project Alpha Intermediate Holding, Inc.
Common Stock N/A N/A N/A 1 964 0.1 1,116
Project Alpha Intermediate Holding, Inc.
Common Stock N/A N/A N/A 202 329 0.1 977
RegEd Aquireco, LLC
LP interest N/A N/A N/A — 316 — 228
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 — 613
SnapLogic, Inc.
Warrant N/A N/A N/A 69 27 — 163
Caliper Software, Inc.
Preferred stock N/A N/A N/A 3 2,734 0.2 2,826
Caliper Software, Inc.
Common Stock N/A N/A N/A 221 283 — 445
Caliper Software, Inc.
Preferred stock N/A N/A N/A — 37 — 43
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 1,441
Verisys Corporation
LLC interest N/A N/A N/A 579 712 0.1 737
Vitalyst, LLC
Preferred stock N/A N/A N/A — 61 — 45
Vitalyst, LLC
Common Stock N/A N/A N/A 1 7 — —
Workforce Software, LLC
Common Stock N/A N/A N/A — 973 — 389
Xmatters, Inc. and Alarmpoint, Inc.
Preferred stock N/A N/A N/A 474 494 — 553
Xmatters, Inc. and Alarmpoint, Inc.
Warrant N/A N/A N/A 84 64 — 19
Xmatters, Inc. and Alarmpoint, Inc.
Preferred stock N/A N/A N/A 20 26 — 23
23,455 1.2 23,422
Ecological
Pace Analytical Services, LLC
LLC units N/A N/A N/A 6 700 — 650
Electronics
Appriss Holdings, Inc.
Preferred stock N/A N/A N/A — 174 — 172
Diligent Corporation
Preferred stock N/A N/A N/A 414 1,609 0.1 2,107
Episerver, Inc.
LLC units N/A N/A N/A 76 807 0.1 544
ES Acquisition LLC
LP interest N/A N/A N/A — 13 — 11
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 — 11
Silver Peak Systems, Inc.
Warrant N/A N/A N/A 67 27 — 48
2,649 0.2 2,893
See Notes to Consolidated Financial Statements.
30
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare
Active Day, Inc.
LLC interest N/A N/A N/A 1 $ 1,098 — % $ 573
Acuity Eyecare Holdings, LLC
LLC interest N/A N/A N/A 1,158 1,334 0.1 1,291
ADCS Clinics Intermediate Holdings, LLC
Preferred stock N/A N/A N/A 1 1,119 0.1 562
ADCS Clinics Intermediate Holdings, LLC
Common Stock N/A N/A N/A — 6 — —
Aris Teleradiology Company, LLC
Preferred stock N/A N/A N/A — — — —
Aris Teleradiology Company, LLC
Preferred stock N/A N/A N/A 5 — — —
Aris Teleradiology Company, LLC
Common Stock N/A N/A N/A 2 — — —
Aspen Medical Products, LLC
Common Stock N/A N/A N/A — 77 — 54
BIO18 Borrower, LLC (17)
LLC units N/A N/A N/A 591 1,190 0.1 1,315
BIOVT, LLC
LLC units N/A N/A N/A — 1,223 0.1 1,510
CMI Parent Inc.
LLC units N/A N/A N/A — 240 — 225
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 — 463
DCA Investment Holding, LLC
LLC units N/A N/A N/A 13,890 1,619 0.1 1,150
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 — 303
Elite Dental Partners LLC
Common Stock N/A N/A N/A — 737 — 34
Encore GC Acquisition, LLC
LLC units N/A N/A N/A 26 272 — 289
Encore GC Acquisition, LLC
LLC units N/A N/A N/A 26 52 — 75
ERG Buyer, LLC
LLC units N/A N/A N/A 1 661 — 112
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 — 89
Eyecare Services Partners Holdings LLC
LLC 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 1,752
Katena Holdings, Inc.
LLC units N/A N/A N/A 1 573 — 307
Krueger-Gilbert Health Physics, LLC
LLC interest N/A N/A N/A 155 172 — 88
Lombart Brothers, Inc.
Common Stock N/A N/A N/A 1 440 — 181
MD Now Holdings, Inc.
LLC units N/A N/A N/A 15 153 — 141
MWD Management, LLC & MWD Services, Inc.
LLC interest N/A N/A N/A 412 335 — 197
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 — 147
Pinnacle Treatment Centers, Inc.
Preferred stock N/A N/A N/A — 528 — 497
Pinnacle Treatment Centers, Inc.
LLC units N/A N/A N/A 5 74 — —
Radiology Partners, Inc.
LLC units N/A N/A N/A 11 68 — 61
Radiology Partners, Inc.
LLC units N/A N/A N/A 43 55 — 240
RXH Buyer Corporation
LP interest N/A N/A N/A 11 973 0.1 757
Sage Dental Management, LLC
LLC units N/A N/A N/A — 249 — 7
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 0.1 953
Spear Education, LLC
LLC units N/A N/A N/A — 7 — 85
Spear Education, LLC
LLC units N/A N/A N/A 1 1 — 26
See Notes to Consolidated Financial Statements.
31
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
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 — 84
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 — 447
WHCG Management, LLC
LLC interest N/A N/A N/A 1 414 — 384
22,615 0.8 14,657
Insurance
Captive Resources Midco, LLC (17)
LLC units N/A N/A N/A 425 — — 290
Orchid Underwriters Agency, LLC
LP interest N/A N/A N/A 78 90 — 58
90 — 348
Leisure, Amusement, Motion Pictures, Entertainment
LMP TR Holdings, LLC
LLC units N/A N/A N/A 712 712 0.1 593
PADI Holdco, Inc. (17)
LLC units N/A N/A N/A 1 969 — 447
WBZ Investment LLC
LLC interest N/A N/A N/A 68 117 — 88
WBZ Investment LLC
LLC interest N/A N/A N/A 46 80 — 60
WBZ Investment LLC
LLC interest N/A N/A N/A 38 65 — 49
WBZ Investment LLC
LLC interest N/A N/A N/A 33 58 — 43
WBZ Investment LLC
LLC interest N/A N/A N/A 14 24 — 19
WBZ Investment LLC
LLC interest N/A N/A N/A 1 2 — 2
2,027 0.1 1,301
Oil and Gas
W3 Co.
LLC units N/A N/A N/A 3 1,632 0.1 1,439
W3 Co.
Preferred stock N/A N/A N/A — 224 — 213
1,856 0.1 1,652
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC (17)
LLC interest N/A N/A N/A 20 239 — 235
Massage Envy, LLC
LLC interest N/A N/A N/A 749 210 0.1 1,252
449 0.1 1,487
Personal, Food and Miscellaneous Services
Blue River Pet Care, LLC
LLC units N/A N/A N/A — 76 — 67
Captain D's, LLC
LLC interest N/A N/A N/A 158 156 — 102
Midwest Veterinary Partners, LLC
LLC units N/A N/A N/A — 29 — 13
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 221 211 — 204
R.G. Barry Corporation
Preferred stock N/A N/A N/A — 161 — 100
Ruby Slipper Cafe LLC, The
LLC units N/A N/A N/A 31 373 — 188
Southern Veterinary Partners, LLC
LLC units N/A N/A N/A 1 717 0.1 887
Southern Veterinary Partners, LLC
LLC units N/A N/A N/A 148 188 — 436
Wetzel's Pretzels, LLC
Common Stock N/A N/A N/A — 416 — 239
2,327 0.1 2,236
Printing and Publishing
Brandmuscle, Inc.
LLC interest N/A N/A N/A — 335 — 46
Retail Stores
2nd Ave. LLC
LP interest N/A N/A N/A 653 653 — 362
See Notes to Consolidated Financial Statements.
32
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
of Net
Assets
Fair
Value (4)
Retail Stores - (continued)
Batteries Plus Holding Corporation
LP interest N/A N/A N/A 10 1,287 0.1 926
Cycle Gear, Inc.
LLC units N/A N/A N/A 27 462 — 346
DTLR, Inc.
LLC interest N/A N/A N/A 4 411 — 597
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 — 363
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 0.1 998
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 — 152
Pet Supplies Plus, LLC (17)
LLC units N/A N/A N/A 144 181 — 256
Sola Franchise, LLC and Sola Salon Studios, LLC
LLC units N/A N/A N/A 4 496 — 456
Sola Franchise, LLC and Sola Salon Studios, LLC
LLC units N/A N/A N/A 1 101 — 92
6,974 0.2 4,548
Total non-controlled/non-affiliate company equity investments $ 78,407 3.5 % $ 68,405
Total non-controlled/non-affiliate company investments $ 4,394,956 $ 4,495,559 213.2 % $ 4,169,717
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 $ 926 — % $ 205
Uinta Brewing Company (7)(8)
One stop L + 0.50%
(a)
1.50% 08/2021 479 475 — 396
1,441 1,401 — 601
Diversified/Conglomerate Service
Switchfly LLC (8)
One stop L + 3.00%
(c)
4.91% 10/2023 5,363 5,169 0.2 4,046
Switchfly LLC (8)
One stop L + 3.00%
(c)
0.0491 10/2023 448 432 — 338
Switchfly LLC (8)
One stop L + 3.00%
(c)
0.0491 10/2023 34 33 — 26
Switchfly LLC (5)(8)
One stop L + 8.50% N/A(6) 10/2023 — — — (28)
5,845 5,634 0.2 4,382
Electronics
Sloan Company, Inc., The +(7)(8)
One stop L + 8.50%
(c)
9.87% 04/2023 4,709 4,075 0.2 4,081
Sloan Company, Inc., The (7)(8)
One stop L + 8.50%
(c)
9.87% 04/2023 593 591 — 619
Sloan Company, Inc., The (7)(8)
One stop L + 8.50%
(c)
9.87% 04/2023 312 271 — 271
5,614 4,937 0.2 4,971
Healthcare, Education and Childcare
Dental Holdings Corporation *(7)(8)
One stop L + 6.00%
(b)
7.16% 03/2023 10,660 10,612 0.4 6,975
Dental Holdings Corporation (8)
One stop L + 6.00%
(c)
7.00% 03/2023 107 107 — 107
10,767 10,719 0.4 7,082
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc. +(8)
One stop L + 11.00%
(a)
10.25% cash/2.00% PIK 05/2020 4,150 4,144 0.2 2,905
Benetech, Inc. (8)
One stop P + 9.75%
(a)(f)
10.91% cash/2.00% PIK 05/2020 557 555 — 195
4,707 4,699 0.2 3,100
Total non-controlled affiliate company debt investments $ 28,374 $ 27,390 1.0 % $ 20,136
See Notes to Consolidated Financial Statements.
33
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


Investment
Type
Spread
Above
Index (1)
Interest
Rate (2)
Maturity
Date
Principal ($) /
Shares (3)
Amortized Cost Percentage
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 $ — % $ —
Diversified/Conglomerate Service
Switchfly LLC (8)
LLC units N/A N/A N/A 3,418 2,320 — 2,417
Electronics
Sloan Company, Inc., The (8)
LLC units N/A N/A N/A — 152 — —
Sloan Company, Inc., The +(8)
Common stock N/A N/A N/A — 41 — 41
Sloan Company, Inc., The (8)
LLC units N/A N/A N/A 2 14 — —
207 — 41
Healthcare, Education and Childcare
Dental Holdings Corporation *(8)
Common stock N/A N/A N/A — 390 — 390
390 — 390
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc. (8)
LLC interest N/A N/A N/A 59 — — —
Benetech, Inc. (8)
LLC interest N/A N/A N/A 59 — — —
— — —
Total non-controlled affiliate company equity investments $ 2,934 — % $ 2,848
Total non-controlled affiliate company investments $ 28,374 $ 30,324 1.0 % $ 22,984
Controlled affiliate company investments (19)
Debt Investments
Diversified/Conglomerate Service
MMan Acquisition Co. ^*+(7)(8)
One stop N/A 10.00% PIK 08/2023 $ 22,527 $ 19,830 0.8 % $ 15,379
MMan Acquisition Co. (7)(8)
One stop N/A 8.00% PIK 08/2023 1,358 1,358 0.1 1,277
23,885 21,188 0.9 16,656
Total controlled affiliate company debt investments $ 23,885 $ 21,188 0.9 % $ 16,656
Equity investments (15)(16)
Diversified/Conglomerate Service
MMan Acquisition Co. ^*+(8)
LLC units N/A N/A N/A — $ 928 — % $ 858
Total controlled affiliate company equity investments $ 928 — % $ 858
Total controlled affiliate company investments $ 23,885 $ 22,116 0.9 % $ 17,514
Total investments $ 4,447,215 $ 4,547,999 215.1 % $ 4,210,215
Money market funds (included in cash and cash equivalents and restricted cash and cash equivalents)
BlackRock Liquidity Funds T-Fund Institutional Shares (CUSIP 09248U718)
0.21% (21)
$ 15,726 0.8 % $ 15,726
Total money market funds $ 15,726 0.8 % $ 15,726
Total investments and money market funds $ 4,563,725 215.9 % $ 4,225,941


See Notes to Consolidated Financial Statements.
34
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


^
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).
%
Denotes that all or a portion of the loan collateralizes the SLF Credit Facility (as defined in Note 7).
&
Denotes that all or a portion of the loan collateralizes the GCIC SLF Credit Facility (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 March 31, 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 March 31, 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 March 31, 2020, as the loan may have priced or repriced based on an index rate prior to March 31, 2020.
(a) Denotes that all or a portion of the loan was indexed to the 30-day LIBOR, which was 0.99% as of March 31, 2020.
(b) Denotes that all or a portion of the loan was indexed to the 60-day LIBOR, which was 1.26% as of March 31, 2020.
(c) Denotes that all or a portion of the loan was indexed to the 90-day LIBOR, which was 1.45% as of March 31, 2020.
(d) Denotes that all or a portion of the loan was indexed to the 180-day LIBOR, which was 1.18% as of March 31, 2020.
(e) Denotes that all or a portion of the loan was indexed to the 360-day LIBOR, which was 1.00% as of March 31, 2020.
(f) Denotes that all or a portion of the loan was indexed to the Prime rate, which was 3.25% as of March 31, 2020.
(g) Denotes that all or a portion of the loan was indexed to the 90-day EURIBOR, which was -0.36% as of March 31, 2020.
(h) Denotes that all or a portion of the loan was indexed to the 30-day GBP LIBOR, which was 0.24% as of March 31, 2020.
(i) Denotes that all or a portion of the loan was indexed to the 90-day GBP LIBOR, which was 0.60% as of March 31, 2020.
(j) Denotes that all or a portion of the loan was indexed to the 180-day GBP LIBOR, which was 0.73% as of March 31, 2020.
(k) Denotes that all or a portion of the loan was indexed to the Australia Three Month Interbank Rate, which was 0.42%, as of March 31, 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 March 31, 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 March 31, 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 March 31, 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 March 31, 2020, total non-qualifying assets at fair value represented 5.4% 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.
(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.
See Notes to Consolidated Financial Statements.
35
TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments (unaudited) - continued
March 31, 2020
(In thousands)


(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 six months ended March 31, 2020 were as follows:
Portfolio Company
Fair value as of September 30, 2019
Purchases (cost) (l)
Redemptions
(cost) 		Transfer in/out (cost) Premium amort/
Discount
accretion 		Net change in unrealized
gain/(loss) 		Fair value as of March 31, 2020 Net realized gain/(loss) Interest and
fee income 		Dividend
income
Benetech, Inc.
$ 3,747 $ 480 $ (602) $ — $ 28 $ (553) $ 3,100 $ — $ 322 $ —
Dental Holdings Corporation (m)
— 425 (2,126) 12,862 (167) (3,522) 7,472 (3,247) — —
Sloan Company, Inc., The (m)
— 642 (725) 5,741 (674) 28 5,012 (4,791) — —
Switchfly LLC
7,783 — — — 29 (1,013) 6,799 — 150 —
Uinta Brewing Company
1,045 299 (12) — (2) (729) 601 — — —
Total Non-Controlled Affiliates
$ 12,575 $ 1,846 $ (3,465) $ 18,603 $ (786) $ (5,789) $ 22,984 $ (8,038) $ 472 $ —

(l)
Purchases at cost includes amounts related to payment-in-kind (“PIK”) interest capitalized and added to the principal balance of the respective loans.
(m)
During the three months ended March 31, 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 six months ended March 31, 2020 were as follows:
Portfolio Company
Fair value as of September 30, 2019 Purchases (cost) Redemptions
(cost) 		Transfer in/out (cost) Premium amort/
Discount
accretion 		Net change in unrealized
gain/(loss) 		Fair value as of March 31, 2020 Net realized gain/(loss) Interest and
fee income 		Dividend
income
MMan Acquisition Co. (n)
— 2,344 — 16,784 139 (1,753) 17,514 — 350 —
Total Controlled Affiliates
$ — $ 2,344 $ — $ 16,784 $ 139 $ (1,753) $ 17,514 $ — $ 350 $ —

(n)
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.
(20) The rate shown is the annualized seven-day yield as of March 31, 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 Cost Percentage of Net Assets
Fair Value (4)
Investments
Non-controlled/non-affiliate company investments
Debt investments
Aerospace and Defense
ILC Dover, LP #+!~
Senior loan L + 4.75%
(a)(c)(d)
6.94% 12/2023 $ 6,617 $ 6,583 0.3 % $ 6,617
NTS Technical Systems ^*#+!~
One stop L + 6.25%
(a)(c)
8.35% 06/2021 25,650 25,611 1.2 25,650
NTS Technical Systems #+!~
One stop L + 6.25%
(a)(c)
8.35% 06/2021 4,210 4,201 0.2 4,210
NTS Technical Systems (5)
One stop L + 6.25%
N/A (6)
06/2021 — (40) — —
Tronair Parent, Inc. ^+
Senior loan L + 4.75%
(c)
6.93% 09/2023 726 717 — 682
Tronair Parent, Inc.
Senior loan L + 4.50%
(c)(f)
6.96% 09/2021 160 157 — 148
Whitcraft LLC ^*+
One stop L + 5.50%
(c)
7.60% 04/2023 42,099 43,102 1.9 42,099
Whitcraft LLC
One stop L + 5.50%
(c)
7.60% 04/2023 8,300 8,292 0.4 8,300
Whitcraft LLC (5)
One stop L + 5.50%
N/A (6)
04/2023 — (1) — —
87,762 88,622 4.0 87,706
Automobile
Dent Wizard International Corporation #+!~
Senior loan L + 4.00%
(a)
6.05% 04/2022 12,338 12,498 0.6 12,338
Grease Monkey International, LLC ^*
Senior loan L + 5.00%
(a)
7.04% 11/2022 7,834 7,934 0.4 7,834
Grease Monkey International, LLC #!~
Senior loan L + 5.00%
(a)
7.04% 11/2022 2,394 2,494 0.1 2,394
Grease Monkey International, LLC #!~
Senior loan L + 5.00%
(a)
7.04% 11/2022 1,215 1,267 0.1 1,215
Grease Monkey International, LLC #+!~
Senior loan L + 5.00%
(a)
7.04% 11/2022 1,100 1,144 0.1 1,100
Grease Monkey International, LLC
Senior loan L + 5.00%
(a)
7.04% 11/2022 126 130 — 126
Grease Monkey International, LLC
Senior loan L + 5.00%
(a)
7.04% 11/2022 110 111 — 110
JHCC Holdings LLC
One stop L + 5.50%
(c)
7.60% 09/2025 15,788 15,475 0.7 15,630
JHCC Holdings LLC
One stop L + 5.50%
(a)
7.54% 09/2025 10 9 — 9
JHCC Holdings LLC (5)
One stop L + 5.50%
N/A (6)
09/2025 — (3) — (3)
Polk Acquisition Corp. *
Senior loan L + 5.25%
(a)
7.29% 06/2022 5,185 5,307 0.2 5,081
Polk Acquisition Corp.
Senior loan L + 5.25%
(a)
7.29% 06/2022 30 31 — 30
Power Stop, LLC #+!~
Senior loan L + 4.75%
(c)
6.85% 10/2025 2,871 2,935 0.1 2,871
Quick Quack Car Wash Holdings, LLC *
One stop L + 6.50%
(a)
8.54% 04/2023 13,218 13,345 0.6 13,218
Quick Quack Car Wash Holdings, LLC *
One stop L + 6.50%
(a)
8.54% 04/2023 2,084 2,169 0.1 2,084
Quick Quack Car Wash Holdings, LLC
One stop L + 6.50%
(a)(c)
8.55% 04/2023 1,822 1,897 0.1 1,822
Quick Quack Car Wash Holdings, LLC *
One stop L + 6.50%
(a)
8.54% 04/2023 1,392 1,450 0.1 1,392
Quick Quack Car Wash Holdings, LLC
One stop L + 6.50%
(a)
8.55% 04/2023 80 82 — 80
67,597 68,275 3.2 67,331
Beverage, Food and Tobacco
Abita Brewing Co., L.L.C. +
One stop L + 5.75%
(c)
7.87% 04/2021 9,983 10,051 0.5 9,882
Abita Brewing Co., L.L.C. (5)
One stop L + 5.75%
N/A (6)
04/2021 — (1) — (2)
BJH Holdings III Corp. #+!~
One stop L + 5.75%
(a)
7.79% 08/2025 46,400 48,003 2.1 45,936
BJH Holdings III Corp.
One stop L + 5.75%
(a)
7.79% 08/2025 160 151 — 152
C. J. Foods, Inc. ^*
One stop L + 6.25%
(c)
8.35% 05/2020 29,179 30,052 1.3 29,179
C. J. Foods, Inc .^
One stop L + 6.25%
(c)
8.35% 05/2020 2,207 2,275 0.1 2,207
C. J. Foods, Inc.
One stop L + 6.25%
(a)
8.30% 05/2020 592 636 — 592
Cafe Rio Holding, Inc. ^
One stop L + 5.75%
(c)
7.95% 09/2023 18,801 19,065 0.9 18,801
Cafe Rio Holding, Inc.
One stop L + 5.75%
(c)
7.95% 09/2023 2,270 2,367 0.1 2,270
Cafe Rio Holding, Inc. *
One stop L + 5.75%
(c)
7.95% 09/2023 1,442 1,503 0.1 1,442
Cafe Rio Holding, Inc.
One stop L + 5.75%
(c)
7.95% 09/2023 1,273 1,327 0.1 1,273
Cafe Rio Holding, Inc.
One stop L + 5.75%
(c)
7.85% 09/2023 335 332 — 335
Cafe Rio Holding, Inc.
One stop L + 5.75%
(c)
7.85% 09/2023 183 183 — 183
Cafe Rio Holding, Inc.
One stop P + 4.75%
(f)
9.75% 09/2023 60 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 Cost Percentage of Net Assets
Fair Value (4)
Beverage, Food and Tobacco - (continued)
Fintech Midco, LLC *
One stop L + 5.25%
(a)
7.30% 08/2024 $ 24,661 $ 25,093 1.1 % $ 24,661
Fintech Midco, LLC
One stop L + 5.25%
(a)
7.30% 08/2024 1,142 1,190 0.1 1,142
Fintech Midco, LLC (5)
One stop L + 5.25%
N/A (6)
08/2024 — (1) — —
Fintech Midco, LLC (5)
One stop L + 5.25%
N/A (6)
08/2024 — (1) — —
Flavor Producers, LLC #!~
Senior loan L + 4.75%
(c)
6.85% 12/2023 5,031 4,903 0.2 4,630
Flavor Producers, LLC (5)
Senior loan L + 4.75%
N/A (6)
12/2022 — (6) — (10)
FWR Holding Corporation ^
One stop L + 5.50%
(a)
7.55% 08/2023 9,203 9,334 0.4 9,203
FWR Holding Corporation
One stop L + 5.50%
(a)
7.55% 08/2023 1,839 1,916 0.1 1,839
FWR Holding Corporation
One stop L + 5.50%
(a)
7.55% 08/2023 1,163 1,211 0.1 1,163
FWR Holding Corporation
One stop L + 5.50%
(a)
7.55% 08/2023 368 381 — 368
FWR Holding Corporation
One stop L + 5.50%
(a)
7.55% 08/2023 275 285 — 275
FWR Holding Corporation
One stop L + 5.50%
(a)
7.55% 08/2023 34 33 — 34
FWR Holding Corporation
One stop L + 5.50%
N/A (6)
08/2023 — — — —
Global ID Corporation *#+!~
One stop L + 6.50%
(c)
8.60% 11/2021 11,798 12,028 0.5 11,798
Global ID Corporation *
One stop L + 6.50%
(c)
8.60% 11/2021 821 854 — 821
Global ID Corporation
One stop L + 6.50%
(c)
8.60% 11/2021 719 749 — 719
Global ID Corporation
One stop L + 6.50%
(c)
8.60% 11/2021 494 513 — 494
Global ID Corporation
One stop L + 6.50%
N/A (6)
11/2021 — — — —
Global ID Corporation
One stop L + 6.50%
N/A (6)
11/2021 — — — —
Mendocino Farms, LLC
One stop L + 8.50%
(a)
3.04% cash/7.50% PIK 06/2023 767 799 — 767
Mendocino Farms, LLC
One stop L + 8.50%
(a)
3.04% cash/7.50% PIK 06/2023 604 628 — 604
Mendocino Farms, LLC (5)
One stop L + 1.00%
N/A (6)
06/2023 — (1) — —
Mid-America Pet Food, L.L.C. ^*
One stop L + 6.00%
(c)
8.10% 12/2021 22,514 22,992 1.0 22,514
Mid-America Pet Food, L.L.C.
One stop L + 6.00%
N/A (6)
12/2021 — — — —
NBC Intermediate, LLC #+!~
Senior loan L + 4.25%
(a)(c)
6.40% 09/2023 2,365 2,402 0.1 2,365
NBC Intermediate, LLC *
Senior loan L + 4.25%
(c)
6.45% 09/2023 2,309 2,346 0.1 2,309
NBC Intermediate, LLC ^
Senior loan L + 4.25%
(c)
6.45% 09/2023 2,024 2,010 0.1 2,024
NBC Intermediate, LLC
Senior loan L + 4.25%
N/A (6)
09/2023 — — — —
Purfoods, LLC
One stop L + 5.50%
(c)
7.62% 05/2021 16,176 16,457 0.7 16,176
Purfoods, LLC
One stop L + 5.50%
(c)
7.60% 05/2021 543 564 — 543
Purfoods, LLC ^
One stop L + 5.50%
(c)
7.60% 05/2021 391 407 — 391
Purfoods, LLC #!~
One stop L + 5.50%
(c)
7.60% 05/2021 296 307 — 296
Purfoods, LLC #!~
One stop L + 5.50%
(c)
7.60% 05/2021 296 307 — 296
Purfoods, LLC *
One stop L + 5.50%
(c)
7.60% 05/2021 295 307 — 295
Purfoods, LLC
One stop L + 5.50%
(c)
7.59% 05/2021 253 257 — 253
Purfoods, LLC
One stop N/A 7.00% PIK 05/2026 241 246 — 241
Purfoods, LLC
One stop L + 5.50%
(c)
7.60% 05/2021 149 155 — 149
Purfoods, LLC ^
One stop L + 5.50%
(c)
7.60% 05/2021 48 48 — 48
Purfoods, LLC
One stop L + 5.50%
(a)(c)
7.57% 05/2021 40 41 — 40
Purfoods, LLC ^
One stop L + 5.50%
(c)
7.60% 05/2021 30 30 — 30
Purfoods, LLC ^
One stop L + 5.50%
(c)
7.60% 05/2021 30 30 — 30
Purfoods, LLC ^
One stop L + 5.50%
(c)
7.60% 05/2021 28 28 — 28
Purfoods, LLC ^
One stop L + 5.50%
(c)
7.60% 05/2021 22 22 — 22
Purfoods, LLC ^
One stop L + 5.50%
(c)
7.60% 05/2021 22 22 — 22
Purfoods, LLC ^
One stop L + 5.50%
(c)
7.60% 05/2021 20 20 — 20
Rubio's Restaurants, Inc. ^*
Senior loan L + 7.00%
(c)
9.1% 10/2019 11,349 11,330 0.5 11,349
Rubio's Restaurants, Inc.
Senior loan L + 7.00%
(a)(f)
9.62% 10/2019 90 91 — 90
Wood Fired Holding Corp. *
One stop L + 5.75%
(c)
8.06% 12/2023 14,180 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 Cost Percentage of Net Assets
Fair Value (4)
Beverage, Food and Tobacco - (continued)
Wood Fired Holding Corp.
One stop L + 5.75%
(c)
7.85% 12/2023 $ 40 $ 39 — % $ 40
Wood Fired Holding Corp.
One stop L + 5.75%
N/A (6)
12/2023 — — — —
245,555 250,822 10.8 244,569
Broadcasting and Entertainment
TouchTunes Interactive Networks, Inc. ^+
Senior loan L + 4.75%
(a)
6.79% 05/2021 2,108 2,136 0.1 2,108
Buildings and Real Estate
Brooks Equipment Company, LLC ^*
One stop L + 5.00%
(c)
7.12% 08/2020 26,730 26,930 1.2 26,730
Brooks Equipment Company, LLC *
One stop L + 5.00%
(b)(c)
7.13% 08/2020 668 671 — 668
Brooks Equipment Company, LLC (5)
One stop L + 5.00%
N/A (6)
08/2020 — (3) — —
Jensen Hughes, Inc.
Senior loan L + 4.50%
(a)(f)
6.55% 03/2024 1,015 1,058 0.1 1,015
Jensen Hughes, Inc. +
Senior loan L + 4.50%
(a)(f)
6.55% 03/2024 923 940 — 923
Jensen Hughes, Inc.
Senior loan L + 4.50%
(a)(f)
6.55% 03/2024 443 462 — 443
Jensen Hughes, Inc. +
Senior loan L + 4.50%
(a)(c)
6.54% 03/2024 283 287 — 283
MRI Software LLC ^
One stop L + 5.75%
(a)
7.80% 06/2023 41,896 42,320 1.9 41,896
MRI Software LLC ^*+
One stop L + 5.75%
(a)
7.80% 06/2023 30,692 31,364 1.4 30,692
MRI Software LLC #+!~
One stop L + 5.75%
(a)
7.80% 06/2023 7,601 7,834 0.3 7,601
MRI Software LLC
One stop L + 5.75%
(a)
7.80% 06/2023 6,561 6,841 0.3 6,561
MRI Software LLC
One stop L + 5.75%
(a)
7.80% 06/2023 4,604 4,793 0.2 4,604
MRI Software LLC ^
One stop L + 5.75%
(a)
7.80% 06/2023 3,231 3,369 0.1 3,231
MRI Software LLC #+!~
One stop L + 5.75%
(a)
7.80% 06/2023 2,068 2,157 0.1 2,068
MRI Software LLC
One stop L + 5.75%
(a)
7.80% 06/2023 1,207 1,256 0.1 1,207
MRI Software LLC ^
One stop L + 5.75%
(a)
7.80% 06/2023 696 708 — 696
MRI Software LLC #!~
One stop L + 5.75%
(a)
7.80% 06/2023 292 289 — 292
MRI Software LLC *
One stop L + 5.75%
(a)
7.80% 06/2023 292 290 — 292
MRI Software LLC *
One stop L + 5.75%
(a)
7.80% 06/2023 192 191 — 192
MRI Software LLC #!~
One stop L + 5.75%
(a)
7.80% 06/2023 97 96 — 97
MRI Software LLC (5)
One stop L + 5.75%
N/A (6)
06/2023 — (2) — —
MRI Software LLC (5)
One stop L + 5.75%
N/A (6)
06/2023 — (2) — —
Paradigm DKD Group, LLC +(7)
Senior loan L + 6.25%
(c)
8.35% 05/2022 1,654 1,207 0.1 1,183
Paradigm DKD Group, LLC (5)(7)
Senior loan L + 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 stop L + 5.75%
(c)
7.85% 02/2020 3,306 3,345 0.1 3,306
Flexan, LLC ^
One stop L + 5.75%
(c)
7.85% 02/2020 1,556 1,575 0.1 1,556
Flexan, LLC
One stop P + 4.50%
(f)
9.50% 02/2020 30 31 — 30
Inhance Technologies Holdings LLC
One stop L + 5.25%
(c)
7.57% 07/2024 12,832 12,982 0.6 12,832
Inhance Technologies Holdings LLC
One stop L + 5.25%
(c)
7.57% 07/2024 855 890 — 855
Inhance Technologies Holdings LLC
One stop P + 4.25%
(f)
9.25% 07/2024 100 100 — 100
18,679 18,923 0.8 18,679
Diversified/Conglomerate Manufacturing
Blackbird Purchaser, Inc. #+!~
Senior loan L + 4.50%
(c)(f)
6.6% 04/2026 13,149 13,494 0.6 13,149
Blackbird Purchaser, Inc.
Senior loan L + 4.50%
(c)(f)
6.60% 04/2026 598 620 — 598
Blackbird Purchaser, Inc.
Senior loan L + 4.50%
(c)
6.6% 04/2024 70 68 — 70
Chase Industries, Inc. #+!~
Senior loan L + 4.00%
(c)(f)
6.1% 05/2025 12,120 12,267 0.5 12,120
Chase Industries, Inc.
Senior loan L + 4.00%
(c)
6.1% 05/2025 991 1,030 0.1 991
Chase Industries, Inc.
Senior loan L + 4.00%
(c)(f)
6.10% 05/2023 306 311 — 306
Inventus Power, Inc. ^*+
One stop L + 6.50%
(a)
8.54% 04/2020 15,885 15,399 0.6 14,295
Inventus Power, Inc.
One stop L + 6.50%
(a)
8.55% 04/2020 610 581 — 530
Pasternack Enterprises, Inc. and Fairview Microwave, Inc #+!~
Senior loan L + 4.00%
(a)(f)
6.04% 07/2025 13,702 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 Cost Percentage of Net Assets
Fair Value (4)
Diversified/Conglomerate Manufacturing - (continued)
Pasternack Enterprises, Inc. and Fairview Microwave, Inc
Senior loan L + 4.00%
(b)
6.09% 07/2023 $ 8 $ 8 — % $ 8
PetroChoice Holdings, Inc. ^
Senior loan L + 5.00%
(c)
7.26% 08/2022 3,309 3,320 0.1 3,211
Reladyne, Inc. ^*
Senior loan L + 5.00%
(c)
7.32% 07/2022 27,295 27,634 1.2 27,295
Reladyne, Inc.
Senior loan L + 5.00%
(c)
7.32% 07/2022 2,366 2,457 0.1 2,366
Reladyne, Inc.
Senior loan L + 5.00%
(c)
7.10% 07/2022 1,732 1,805 0.1 1,732
Reladyne, Inc.
Senior loan L + 5.00%
(c)
7.32% 07/2022 1,561 1,627 0.1 1,561
Reladyne, Inc. ^
Senior loan L + 5.00%
(c)
7.32% 07/2022 1,283 1,333 0.1 1,283
Reladyne, Inc. #!~
Senior loan L + 5.00%
(c)
7.32% 07/2022 1,104 1,147 0.1 1,104
Reladyne, Inc. #!~
Senior loan L + 5.00%
(c)
7.32% 07/2022 503 523 — 503
Togetherwork Holdings, LLC *
One stop L + 6.25%
(a)
8.29% 03/2025 15,724 15,898 0.7 15,724
Togetherwork Holdings, LLC #+!~
One stop L + 6.25%
(a)
8.29% 03/2025 1,822 1,897 0.1 1,822
Togetherwork Holdings, LLC
One stop L + 6.25%
(a)
8.29% 03/2025 1,768 1,837 0.1 1,768
Togetherwork Holdings, LLC *
One stop L + 6.25%
(a)
8.29% 03/2025 1,724 1,795 0.1 1,724
Togetherwork Holdings, LLC #+!~
One stop L + 6.25%
(a)
8.29% 03/2025 1,664 1,704 0.1 1,664
Togetherwork Holdings, LLC *+
One stop L + 6.25%
(a)
8.29% 03/2025 1,605 1,671 0.1 1,605
Togetherwork Holdings, LLC
One stop L + 6.25%
(a)
8.29% 03/2025 1,496 1,556 0.1 1,496
Togetherwork Holdings, LLC *
One stop L + 6.25%
(a)
8.29% 03/2025 1,225 1,247 0.1 1,225
Togetherwork Holdings, LLC
One stop L + 6.25%
(a)
8.29% 03/2025 675 701 — 675
Togetherwork Holdings, LLC
One stop L + 6.25%
(a)
8.29% 03/2025 66 67 — 66
Togetherwork Holdings, LLC #!~
One stop L + 6.25%
(a)
8.29% 03/2025 60 62 — 60
Togetherwork Holdings, LLC (5)
One stop L + 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 stop L + 5.75%
(c)(d)
7.81% 05/2025 13,900 14,196 0.6 13,900
3ES Innovation, Inc. (5)(8)(12)
One stop L + 5.75%
N/A (6)
05/2025 — (2) — —
Accela, Inc. *
One stop L + 8.75%
(a)
5.29% cash/5.50% PIK 09/2023 11,933 11,983 0.5 11,695
Accela, Inc.
One stop L + 8.75%
(a)
5.29% cash/5.50% PIK 09/2023 996 1,003 — 976
Accela, Inc.
One stop L + 8.75%
(a)
5.29% cash/5.50% PIK 09/2023 104 104 — 102
Agility Recovery Solutions Inc. ^*
One stop L + 6.00%
(e)
8.02% 03/2023 22,708 22,869 1.0 22,708
Agility Recovery Solutions Inc.
One stop L + 6.00%
(a)(c)
8.10% 03/2023 201 196 — 201
Apptio, Inc. #!~
One stop L + 7.25%
(c)
9.56% 01/2025 57,009 57,889 2.6 57,009
Apptio, Inc. (5)
One stop L + 7.25%
N/A (6)
01/2025 — (2) — —
Arch Global CCT Holdings Corp. #+!~
Senior loan L + 4.75%
(a)(f)
6.79% 04/2026 3,853 3,896 0.2 3,853
Arch Global CCT Holdings Corp.
Senior loan L + 4.75%
N/A (6)
04/2025 — — — —
Arch Global CCT Holdings Corp.
Senior loan L + 4.75%
N/A (6)
04/2026 — — — —
Astute Holdings, Inc.
One stop L + 6.00%
(a)
8.04% 04/2025 10,935 11,132 0.5 10,935
Astute Holdings, Inc.
One stop L + 6.00%
(a)
8.04% 04/2025 40 39 — 40
Astute Holdings, Inc. (5)
One stop L + 6.00%
N/A (6)
04/2025 — (2) — —
AutoQuotes, LLC
One stop L + 5.75%
(c)
7.88% 11/2024 9,888 10,056 0.4 9,888
AutoQuotes, LLC
One stop L + 5.75%
N/A (6)
11/2024 — — — —
Axiom Merger Sub Inc. #!~
One stop L + 5.50%
(b)(c)
7.85% 04/2026 5,906 5,969 0.3 5,906
Axiom Merger Sub Inc. #+!~(8)(9)
One stop E + 5.75%
(g)
5.75% 04/2026 2,442 2,467 0.1 2,378
Axiom Merger Sub Inc. (5)
One stop L + 5.50%
N/A (6)
04/2026 — (1) — —
Axiom Merger Sub Inc. (5)
One stop L + 5.50%
N/A (6)
04/2026 — (3) — —
Bazaarvoice, Inc. *#+!~
One stop L + 5.75%
(a)
7.79% 02/2024 48,613 49,581 2.2 48,613
Bazaarvoice, Inc. (5)
One stop L + 5.75%
N/A (6)
02/2024 — (3) — —
Bearcat Buyer, Inc. #+!~
Senior loan L + 4.25%
(c)
6.35% 07/2026 2,957 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 Cost Percentage of Net Assets
Fair Value (4)
Diversified/Conglomerate Service - (continued)
Bearcat Buyer, Inc. #!~
Senior loan L + 4.25%
(c)
6.35% 07/2026 $ 312 $ 309 — % $ 309
Bearcat Buyer, Inc.
Senior loan L + 4.25%
(c)
6.35% 07/2026 166 167 — 162
Bearcat Buyer, Inc.
Senior loan L + 4.25%
N/A (6)
07/2024 — — — —
Bullhorn, Inc. #!~
One stop L + 6.75%
(b)
8.91% 11/2022 5,082 5,094 0.2 5,132
Bullhorn, Inc. #!~
One stop L + 6.75%
(b)
8.91% 11/2022 1,217 1,220 0.1 1,229
Calabrio, Inc. #!~
One stop L + 6.50%
(c)
8.60% 06/2025 9,880 10,058 0.4 9,880
Calabrio, Inc.
One stop L + 6.50%
(a)(c)
8.54% 06/2025 84 84 — 84
Caliper Software, Inc. #!~
One stop L + 6.00%
(c)(f)
8.10% 11/2025 26,137 26,698 1.2 26,137
Caliper Software, Inc.
One stop L + 6.00%
(c)
8.10% 11/2023 284 287 — 284
Centrify Corporation *
One stop L + 6.25%
(c)
8.36% 08/2024 23,375 23,422 1.0 22,674
Centrify Corporation
One stop P + 5.25%
(f)
10.25% 08/2024 300 300 — 292
Clearwater Analytics, LLC ^*
One stop L + 7.00%
(c)
9.20% 09/2022 16,458 16,452 0.7 16,458
Clearwater Analytics, LLC +
One stop L + 7.00%
(c)
9.22% 07/2025 6,102 6,134 0.3 6,102
Clearwater Analytics, LLC (5)
One stop L + 7.00%
N/A (6)
09/2022 — (4) — —
Cloudbees, Inc.
One stop L + 9.00%
(a)(c)
10.60% cash/0.50% PIK 05/2023 4,193 4,240 0.2 4,172
Cloudbees, Inc.
One stop L + 9.00%
(a)
10.54% cash/0.50% PIK 08/2021 1,462 1,482 0.1 1,421
Cloudbees, Inc.
One stop L + 8.50%
N/A (6)
05/2023 — — — —
Confluence Technologies, Inc.
One stop L + 5.50%
(a)
7.55% 03/2024 15,470 15,741 0.7 15,470
Confluence Technologies, Inc. (5)
One stop L + 5.50%
N/A (6)
03/2024 — (1) — —
Connexin Software, Inc. #!~
One stop L + 8.50%
(a)
10.54% 02/2024 7,550 7,637 0.3 7,475
Connexin Software, Inc.
One stop L + 8.50%
N/A (6)
02/2024 — — — —
Conservice, LLC# +!~
One stop L + 5.25%
(a)
7.29% 12/2024 3,794 3,870 0.2 3,794
Conservice, LLC
One stop L + 5.25%
N/A (6)
12/2024 — — — —
Daxko Acquisition Corporation ^*
One stop L + 4.75%
(a)
6.79% 09/2023 22,173 22,490 1.0 22,173
Daxko Acquisition Corporation (5)
One stop L + 4.75%
N/A (6)
09/2023 — (1) — —
Digital Guardian, Inc.
One stop L + 9.50%
(c)
8.82% cash/3.00% PIK 06/2023 8,470 8,855 0.4 8,896
Digital Guardian, Inc.
Subordinated debt N/A 8.00% PIK 06/2023 8 6 — 8
Digital Guardian, Inc.
One stop L + 6.50%
N/A (6)
06/2023 — 18 — 19
Digital Guardian, Inc.
One stop L + 5.00%
N/A (6)
06/2023 — — — —
DISA Holdings Acquisition Subsidiary Corp. #+!~
Senior loan P + 3.00%
(c)(f)
7.09% 06/2022 5,107 5,228 0.2 5,107
DISA Holdings Acquisition Subsidiary Corp.
Senior loan L + 4.00%
(a)(c)(f)
6.04% 06/2022 20 19 — 20
DISA Holdings Acquisition Subsidiary Corp.
Senior loan L + 4.00%
N/A (6)
06/2022 — 4 — —
E2open, LLC *#+!~
One stop L + 5.75%
(c)
7.87% 11/2024 86,772 87,841 3.9 86,772
E2open, LLC (5)
One stop L + 5.75%
N/A (6)
11/2024 — (6) — —
EGD Security Systems, LLC ^*
One stop L + 5.75%
(c)
8.06% 06/2023 30,092 30,588 1.4 30,092
EGD Security Systems, LLC
One stop L + 5.75%
(b)(c)
8.06% 06/2023 644 669 — 644
EGD Security Systems, LLC (5)
One stop L + 5.75%
N/A (6)
06/2023 — (2) — —
EGD Security Systems, LLC (5)
One stop L + 5.75%
N/A (6)
06/2023 — (2) — —
GS Acquisitionco, Inc. *#+!~
One stop L + 5.75%
(a)
7.80% 05/2024 54,564 55,059 2.4 53,881
GS Acquisitionco, Inc. *
One stop L + 5.75%
(a)
7.80% 05/2024 12,886 13,268 0.6 12,725
GS Acquisitionco, Inc.
One stop L + 5.75%
(a)
7.80% 05/2024 3,320 3,419 0.1 3,279
GS Acquisitionco, Inc. #+!~
One stop L + 5.75%
(a)
7.80% 05/2024 3,064 3,155 0.1 3,025
GS Acquisitionco, Inc.
One stop L + 5.75%
(a)
7.80% 05/2024 1,918 1,976 0.1 1,895
GS Acquisitionco, Inc.
One stop L + 5.75%
(a)
7.80% 05/2024 52 50 — 50
GS Acquisitionco, Inc.
One stop L + 5.75%
(a)
7.80% 05/2024 11 10 — 9
HealthcareSource HR, Inc. *
One stop L + 5.25%
(c)
7.35% 05/2023 34,095 34,208 1.5 34,095
HealthcareSource HR, Inc. (5)
One stop L + 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 Cost Percentage of Net Assets
Fair Value (4)
Diversified/Conglomerate Service - (continued)
HSI Halo Acquisition, Inc. #+!~
One stop L + 5.75%
(c)
7.87% 08/2026 $ 4,133 $ 4,187 0.2 % $ 4,092
HSI Halo Acquisition, Inc.
One stop L + 5.75%
N/A (6)
09/2025 — — — —
HSI Halo Acquisition, Inc. (5)
One stop L + 5.75%
N/A (6)
08/2026 — (6) — (7)
Hydraulic Authority III Limited #!~(8)(9)(10)
One stop L + 6.00%
(i)(j)
7.00% 11/2025 12,439 12,686 0.5 12,102
Hydraulic Authority III Limited (8)(9)(10)
One stop N/A 11.00% PIK 11/2028 179 184 — 175
Hydraulic Authority III Limited (8)(9)(10)
One stop L + 6.00%
(i)
8.10% 11/2025 24 24 — 24
ICIMS, Inc. #!~
One stop L + 6.50%
(a)
8.56% 09/2024 14,355 14,597 0.7 14,355
ICIMS, Inc. #!~
One stop L + 6.50%
(a)
8.56% 09/2024 4,501 4,595 0.2 4,501
ICIMS, Inc. (5)
One stop L + 6.50%
N/A (6)
09/2024 — (1) — —
III US Holdings, LLC
One stop L + 6.00%
N/A (6)
09/2022 — — — —
Imprivata, Inc. *#+!~
Senior loan L + 4.00%
(c)
6.10% 10/2023 13,185 13,427 0.6 13,185
Imprivata, Inc. (5)
Senior loan L + 4.00%
N/A (6)
10/2023 — (1) — —
Infogix, Inc. *
One stop L + 6.50%
(c)
8.60% 04/2024 7,252 7,419 0.3 7,107
Infogix, Inc. *+
One stop L + 6.50%
(c)
8.60% 04/2024 1,119 1,140 0.1 1,096
Infogix, Inc.
One stop L + 6.50%
(c)
8.60% 04/2024 28 27 — 26
Integral Ad Science, Inc. #!~
One stop L + 7.25%
(a)
8.05% cash/1.25% PIK 07/2024 14,751 15,006 0.7 14,751
Integral Ad Science, Inc. (5)
One stop L + 6.00%
N/A (6)
07/2023 — (3) — (4)
Integration Appliance, Inc. ^*#!~
One stop L + 7.25%
(c)
9.43% 08/2023 68,335 69,389 3.1 68,335
Integration Appliance, Inc.
One stop L + 7.25%
(a)
9.29% 08/2023 487 482 — 487
Internet Truckstop Group LLC *
One stop L + 5.50%
(c)
7.61% 04/2025 22,816 23,521 1.0 22,816
Internet Truckstop Group LLC (5)
One stop L + 5.50%
N/A (6)
04/2025 — (3) — —
Invoice Cloud, Inc.
One stop L + 6.50%
(c)
5.43% cash/3.25% PIK 02/2024 6,309 6,360 0.3 6,309
Invoice Cloud, Inc.
One stop L + 6.00%
N/A (6)
02/2024 — — — —
Invoice Cloud, Inc. (5)
One stop L + 6.00%
N/A (6)
02/2024 — (1) — —
JAMF Holdings, Inc. #!~
One stop L + 7.00%
(c)
9.18% 11/2022 13,559 13,806 0.6 13,559
JAMF Holdings, Inc.
One stop L + 7.00%
(a)
9.05% 11/2022 36 36 — 36
Kareo, Inc.
One stop L + 9.00%
(a)
11.04% 06/2022 10,273 10,453 0.5 10,350
Kareo, Inc.
One stop L + 9.00%
(a)
11.04% 06/2022 940 963 — 948
Kareo, Inc.
One stop L + 9.00%
(a)
11.04% 06/2022 753 772 — 759
Kareo, Inc.
One stop L + 9.00%
N/A (6)
06/2022 — — — —
Kaseya Traverse Inc *
One stop L + 6.50%
(c)(d)
7.72% cash/1.00% PIK 05/2025 33,149 34,346 1.5 33,149
Kaseya Traverse Inc
One stop L + 6.50%
(c)(d)
7.69% cash/1.00% PIK 05/2025 498 519 — 498
Kaseya Traverse Inc
One stop L + 6.50%
(c)
8.60% 05/2025 52 51 — 52
Keais Records Service, LLC
One stop L + 4.50%
(a)
6.54% 10/2024 18,076 18,388 0.8 18,076
Keais Records Service, LLC (5)
One stop L + 4.50%
N/A (6)
10/2024 — (1) — —
Keais Records Service, LLC
One stop L + 4.50%
N/A (6)
10/2024 — — — —
Learn-it Systems, LLC
Senior loan L + 4.50%
(c)
6.65% 03/2025 2,567 2,631 0.1 2,567
Learn-it Systems, LLC
Senior loan L + 4.50%
(c)
6.61% 03/2025 33 32 — 33
Learn-it Systems, LLC
Senior loan L + 4.50%
(a)(c)(f)
7.04% 03/2025 26 26 — 26
Litera Bidco LLC #+!~
One stop L + 5.75%
(c)(d)
7.95% 05/2026 3,379 3,411 0.2 3,379
Litera Bidco LLC
One stop L + 5.75%
(c)(d)
7.96% 05/2026 705 735 — 705
Litera Bidco LLC
One stop L + 5.75%
(c)(d)
7.96% 05/2026 705 734 — 705
Litera Bidco LLC
One stop L + 5.75%
N/A (6)
05/2025 — — — —
Maverick Bidco Inc. *#!~
One stop L + 6.25%
(c)
8.35% 04/2023 39,870 40,173 1.8 39,073
Maverick Bidco Inc. *
One stop L + 6.25%
(c)
8.35% 04/2023 3,215 3,289 0.1 3,151
Maverick Bidco Inc.
One stop L + 6.25%
(c)
8.55% 04/2023 68 65 — 62
MetricStream, Inc.
One stop L + 7.00%
(a)
9.04% 05/2024 9,131 9,232 0.4 9,192
MetricStream, Inc.
One stop L + 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 Cost Percentage of Net Assets
Fair Value (4)
Diversified/Conglomerate Service - (continued)
MetricStream, Inc.
One stop L + 7.00%
N/A (6)
04/2024 $ — $ 12 — % $ 14
Mindbody, Inc. #!~
One stop L + 7.00%
(a)
9.06% 02/2025 48,351 49,317 2.2 48,351
Mindbody, Inc. (5)
One stop L + 7.00%
N/A (6)
02/2025 — (1) — —
Ministry Brands, LLC +
Senior loan L + 4.00%
(a)
6.04% 12/2022 1,460 1,484 0.1 1,460
Ministry Brands, LLC +
Senior loan L + 4.00%
(a)
6.04% 12/2022 836 849 — 836
Ministry Brands, LLC
Senior loan L + 4.00%
(a)
6.04% 12/2022 381 397 — 381
MMan Acquisition Co. ^*+
One stop L + 3.50%
(c)
3.26% cash/2.50% PIK 08/2023 22,428 19,646 0.8 16,798
Namely, Inc. #!~
One stop L + 7.50%
(a)
6.25% cash/1.25% PIK 06/2024 3,546 3,589 0.2 3,546
Namely, Inc.
One stop L + 6.25%
N/A (6)
06/2024 — — — —
Namely, Inc. (5)
One stop L + 6.25%
N/A (6)
06/2024 — (16) — —
Net Health Acquisition Corp. *
One stop L + 5.50%
(c)
7.60% 12/2023 8,642 8,775 0.4 8,555
Net Health Acquisition Corp. #+!~
One stop L + 5.50%
(c)
7.60% 12/2023 6,914 7,069 0.3 6,845
Net Health Acquisition Corp. *
One stop L + 5.50%
(c)
7.60% 12/2023 1,207 1,227 0.1 1,195
Net Health Acquisition Corp. (5)
One stop L + 5.50%
N/A (6)
12/2023 — (2) — (2)
Netsmart Technologies, Inc. (5)
Senior loan L + 4.75%
N/A (6)
04/2021 — (4) — (2)
Nextech Holdings, LLC #+!~
One stop L + 5.50%
(a)
7.54% 06/2025 4,052 4,132 0.2 4,052
Nextech Holdings, LLC
One stop L + 5.50%
(a)
7.54% 06/2025 100 96 — 100
Nextech Holdings, LLC (5)
One stop L + 5.50%
N/A (6)
06/2025 — (23) — —
Nexus Brands Group, Inc. *
One stop L + 6.00%
(c)
8.12% 11/2023 9,474 9,597 0.4 9,474
Nexus Brands Group, Inc. #+!~(8)(9)
One stop N/A 7.00% 11/2023 7,240 7,396 0.3 7,060
Nexus Brands Group, Inc.
One stop L + 6.00%
(c)
8.10% 11/2023 2,007 2,091 0.1 2,007
Nexus Brands Group, Inc. #!~
One stop L + 6.00%
(c)
8.10% 11/2023 1,452 1,513 0.1 1,452
Nexus Brands Group, Inc.
One stop L + 6.00%
(a)(c)
8.13% 11/2023 160 162 — 160
Nexus Brands Group, Inc. (8)(9)
One stop N/A
N/A (6)
11/2023 — — — —
Nexus Brands Group, Inc. (5)(8)(9)
One stop N/A
N/A (6)
11/2023 — (1) — —
Nexus Brands Group, Inc. (5)
One stop L + 6.00%
N/A (6)
11/2023 — (1) — —
Personify, Inc. *+
One stop L + 5.75%
(c)
7.85% 09/2024 15,614 15,933 0.7 15,614
Personify, Inc.
One stop L + 5.75%
(c)
7.85% 09/2024 40 40 — 40
PlanSource Holdings, Inc. #!~
One stop L + 6.25%
(c)
8.81% 04/2025 9,330 9,516 0.4 9,330
PlanSource Holdings, Inc. (5)
One stop L + 6.25%
N/A (6)
04/2025 — (1) — —
Project Power Buyer, LLC #+!~
One stop L + 5.75%
(c)
7.86% 05/2026 11,613 11,860 0.5 11,613
Project Power Buyer, LLC (5)
One stop L + 5.75%
N/A (6)
05/2025 — (1) — —
Property Brands, Inc.
One stop L + 6.00%
(a)
8.04% 01/2024 20,049 20,296 0.9 20,049
Property Brands, Inc. *
One stop L + 6.00%
(a)
8.04% 01/2024 6,720 6,861 0.3 6,720
Property Brands, Inc. ^
One stop L + 6.00%
(a)
8.04% 01/2024 3,276 3,413 0.2 3,276
Property Brands, Inc.
One stop L + 6.00%
(a)
8.04% 01/2024 1,438 1,496 0.1 1,438
Property Brands, Inc.
One stop L + 6.00%
(a)
8.04% 01/2024 1,218 1,267 0.1 1,218
Property Brands, Inc.
One stop L + 6.00%
(a)
8.04% 01/2024 1,200 1,251 0.1 1,200
Property Brands, Inc.
One stop L + 6.00%
(a)
8.04% 01/2024 507 527 — 507
Property Brands, Inc. (5)
One stop L + 6.00%
N/A (6)
01/2024 — (1) — —
Property Brands, Inc. (5)
One stop L + 6.00%
N/A (6)
01/2024 — (4) — —
Qgenda Intermediate Holdings, LLC +
One stop L + 4.75%
(a)
6.79% 06/2025 15,432 15,453 0.7 15,432
Qgenda Intermediate Holdings, LLC (5)
One stop L + 4.75%
N/A (6)
06/2025 — (2) — —
RegEd Aquireco, LLC +
Senior loan L + 4.25%
(a)
6.29% 12/2024 11,532 11,527 0.5 11,532
RegEd Aquireco, LLC
Senior loan P + 3.25%
(f)
8.25% 12/2024 58 58 — 58
RegEd Aquireco, LLC (5)
Senior loan L + 4.25%
N/A (6)
12/2024 — (5) — —
Saba Software, Inc. ^*#+!~
Senior loan L + 4.50%
(b)
6.59% 05/2023 49,189 50,222 2.2 49,189
Saba Software, Inc. #+!~
Senior loan L + 4.50%
(b)
6.59% 05/2023 11,011 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 Cost Percentage of Net Assets
Fair Value (4)
Diversified/Conglomerate Service - (continued)
Saba Software, Inc. (5)
Senior loan L + 4.50%
N/A (6)
05/2023 $ — $ (2) — % $ —
SnapLogic, Inc.
One stop L + 8.75%
(a)
5.29% cash/5.50% PIK 09/2024 5,734 5,650 0.3 5,671
SnapLogic, Inc.
One stop L + 3.25%
N/A (6)
09/2024 — — — —
SnapLogic, Inc.
One stop L + 3.25%
N/A (6)
09/2024 — — — —
Telesoft, LLC *
One stop L + 5.00%
(c)
7.32% 07/2022 7,276 7,437 0.3 7,276
Telesoft, LLC
One stop L + 5.00%
N/A (6)
07/2022 — — — —
TI Intermediate Holdings, LLC +
Senior loan L + 4.50%
(a)
6.54% 12/2024 3,553 3,624 0.2 3,553
TI Intermediate Holdings, LLC
Senior loan L + 4.50%
N/A (6)
12/2024 — — — —
Transact Holdings, Inc. #+!~
Senior loan L + 4.75%
(c)
7.01% 04/2026 3,110 3,160 0.1 3,094
Transaction Data Systems, Inc. *#+!~
One stop L + 5.25%
(a)
7.30% 06/2021 84,331 86,275 3.8 84,331
Transaction Data Systems, Inc.
One stop L + 5.25%
(a)
7.30% 06/2021 130 133 — 130
Trintech, Inc. ^*
One stop L + 6.50%
(c)
8.76% 12/2023 22,629 23,071 1.0 22,629
Trintech, Inc. ^
One stop L + 6.50%
(c)
8.76% 12/2023 9,383 9,625 0.4 9,383
Trintech, Inc.
One stop L + 6.50%
(c)
8.69% 12/2023 120 122 — 120
True Commerce, Inc. ^#+!~
One stop L + 5.75%
(c)
7.85% 11/2023 15,428 15,776 0.7 15,428
True Commerce, Inc. +(8)(9)
One stop L + 5.75%
(c)
7.85% 11/2023 2,616 2,735 0.1 2,572
True Commerce, Inc. (8)
One stop L + 5.75%
(c)
7.85% 11/2023 919 960 — 919
True Commerce, Inc. (5)
One stop L + 5.75%
N/A (6)
11/2023 — (1) — —
Upserve, Inc. #!~
One stop L + 5.50%
(a)
7.54% 07/2023 5,141 5,222 0.2 5,141
Upserve, Inc.
One stop L + 5.50%
(a)
7.54% 07/2023 1,451 1,511 0.1 1,451
Upserve, Inc.
One stop L + 5.50%
N/A (6)
07/2023 — — — —
Vector CS Midco Limited & Cloudsense Ltd. #!~(8)(9)(10)
One stop L + 7.25%
(c)
4.50% cash/2.75% PIK 05/2024 7,608 7,758 0.3 7,322
Vector CS Midco Limited & Cloudsense Ltd. (5)(8)(9)(10)
One stop L + 4.50%
N/A (6)
05/2024 — (1) — —
Velocity Technology Solutions, Inc. *
One stop L + 6.00%
(c)
8.10% 12/2023 18,464 18,832 0.8 18,464
Velocity Technology Solutions, Inc. (5)
One stop L + 6.00%
N/A (6)
12/2023 — (1) — —
Vendavo, Inc. *#!~
One stop L + 8.50%
(c)
10.62% 10/2022 35,726 35,670 1.6 35,726
Vendavo, Inc.
One stop P + 7.25%
(f)
12.50% 10/2022 332 328 — 332
Verisys Corporation *
One stop L + 6.50%
(c)
8.60% 01/2023 8,555 8,736 0.4 8,555
Verisys Corporation (5)
One stop L + 6.50%
N/A (6)
01/2023 — (1) — —
Workforce Software, LLC #!~
One stop L + 6.50%
(c)
7.76% cash/1.00% PIK 07/2025 27,059 27,903 1.2 26,787
Workforce Software, LLC (5)
One stop L + 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 stop L + 5.50%
(a)
7.54% 09/2022 29,947 30,387 1.3 29,947
Pace Analytical Services, LLC ^
One stop L + 5.50%
(a)
7.54% 09/2022 2,785 2,833 0.1 2,785
Pace Analytical Services, LLC
One stop L + 5.50%
(a)
7.54% 09/2022 1,668 1,735 0.1 1,668
Pace Analytical Services, LLC *
One stop L + 5.50%
(a)
7.54% 09/2022 1,534 1,565 0.1 1,534
Pace Analytical Services, LLC ^
One stop L + 5.50%
(a)
7.54% 09/2022 1,235 1,284 0.1 1,235
Pace Analytical Services, LLC
One stop L + 5.50%
(a)
7.54% 09/2022 836 851 — 836
Pace Analytical Services, LLC *
One stop L + 5.50%
(a)
7.54% 09/2022 684 696 — 684
Pace Analytical Services, LLC
One stop L + 5.50%
(a)
7.54% 09/2022 566 588 — 566
Pace Analytical Services, LLC
One stop L + 5.50%
(a)
7.54% 09/2022 190 197 — 190
Pace Analytical Services, LLC
One stop L + 5.50%
(a)
7.54% 09/2022 40 39 — 40
WRE Holding Corp. *
Senior loan L + 5.00%
(a)(c)
7.25% 01/2023 2,300 2,352 0.1 2,300
WRE Holding Corp. #!~
Senior loan L + 5.00%
(a)(c)
7.25% 01/2023 949 990 — 949
WRE Holding Corp.
Senior loan L + 5.00%
(a)(c)
7.25% 01/2023 314 327 — 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 Cost Percentage of Net Assets
Fair Value (4)
Ecological - (continued)
WRE Holding Corp.
Senior loan L + 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 stop L + 5.50%
(c)
7.60% 06/2026 25,221 26,050 1.1 25,221
Appriss Holdings, Inc. (5)
One stop L + 5.50%
N/A (6)
06/2025 — (4) — —
Compusearch Software Holdings, Inc. ^#+!~
Senior loan L + 4.25%
(c)
6.35% 05/2021 2,979 3,020 0.1 2,979
Diligent Corporation *+
One stop L + 5.50%
(c)(d)
7.56% 04/2022 35,807 37,168 1.6 35,807
Diligent Corporation *#!~
One stop L + 5.50%
(c)(d)
7.56% 04/2022 25,868 25,670 1.2 25,868
Diligent Corporation #!~
One stop L + 5.50%
(c)(d)
7.56% 04/2022 12,538 12,841 0.6 12,538
Diligent Corporation ^*
One stop L + 5.50%
(c)(d)
7.56% 04/2022 11,308 11,675 0.5 11,308
Diligent Corporation
One stop L + 5.50%
(c)(d)
7.73% 04/2022 697 723 — 697
Diligent Corporation
One stop L + 5.50%
(c)
7.81% 04/2022 489 508 — 489
Diligent Corporation
One stop L + 5.50%
(c)(d)
7.64% 04/2022 285 287 — 285
Diligent Corporation #!~
One stop L + 5.50%
(c)(d)
7.56% 04/2022 101 100 — 101
Diligent Corporation #!~
One stop L + 5.50%
(c)(d)
7.56% 04/2022 80 79 — 80
Diligent Corporation
One stop L + 5.50%
(c)
7.81% 04/2022 39 38 — 39
Diligent Corporation #!~
One stop L + 5.50%
(c)(d)
7.56% 04/2022 36 35 — 36
Episerver, Inc. #~!(8)(9)
One stop L + 6.00%
(a)
6.00% 10/2024 20,821 21,208 0.9 20,139
Episerver, Inc. *
One stop L + 5.75%
(a)
7.79% 10/2024 12,310 12,545 0.6 12,310
Episerver, Inc. (5)
One stop L + 5.75%
N/A (6)
10/2024 — (2) — —
Gamma Technologies, LLC ^*#!~
One stop L + 5.25%
(a)
7.29% 06/2024 33,411 33,814 1.5 33,411
Gamma Technologies, LLC (5)
One stop L + 5.25%
N/A (6)
06/2024 — (1) — —
SEI, Inc. *
Senior loan L + 4.75%
(a)
6.79% 07/2023 9,575 9,805 0.4 9,575
Silver Peak Systems, Inc.
One stop L + 7.00%
(a)
9.03% 04/2024 5,998 6,018 0.3 6,004
Silver Peak Systems, Inc.
One stop L + 7.00%
N/A (6)
04/2024 — — — —
Sloan Company, Inc., The +(7)
One stop L + 8.50%
(c)
10.60% 04/2020 9,839 8,623 0.3 6,070
Sloan Company, Inc., The (7)
One stop L + 8.50%
(c)
10.60% 04/2020 659 578 — 406
Sloan Company, Inc., The (7)
One stop L + 8.50%
(c)
10.60% 04/2020 297 298 — 303
Sloan Company, Inc., The (7)
One stop L + 8.50%
(c)
10.60% 04/2020 104 85 — 64
Sovos Compliance *+
One stop L + 4.75%
(a)
6.79% 04/2024 19,614 20,308 0.9 19,614
Sovos Compliance
Second lien N/A 12.00% PIK 04/2025 8,843 9,133 0.4 8,843
Sovos Compliance
One stop L + 4.75%
(a)
6.79% 04/2024 1,903 1,972 0.1 1,903
Sovos Compliance
Second lien N/A 12.00% PIK 04/2025 1,195 1,242 0.1 1,195
Sovos Compliance
One stop L + 4.75%
(a)
6.79% 04/2024 768 797 — 768
Sovos Compliance (5)
One stop L + 4.75%
N/A (6)
04/2024 — (2) — —
Watchfire Enterprises, Inc.
Second lien L + 8.00%
(c)
10.10% 10/2021 9,435 9,370 0.4 9,435
250,220 253,981 11.0 245,488
Finance
Institutional Shareholder Services #!~
Senior loan L + 4.50%
(c)
6.60% 03/2026 18,965 19,421 0.8 18,775
Institutional Shareholder Services
Senior loan L + 4.50%
(c)
6.60% 03/2024 116 111 — 108
19,081 19,532 0.8 18,883
Grocery
Teasdale Quality Foods, Inc. +
Senior loan L + 5.75%
(c)
7.85% 10/2020 354 348 — 319
Teasdale Quality Foods, Inc.
Senior loan L + 5.75%
(c)
7.85% 10/2020 102 96 — 92
456 444 — 411
Healthcare, Education and Childcare
Active Day, Inc.
One stop L + 6.50%
(c)
8.60% 12/2021 24,420 24,768 1.1 24,420
Active Day, Inc. ^
One stop L + 6.50%
(c)
8.60% 12/2021 1,884 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 Cost Percentage of Net Assets
Fair Value (4)
Healthcare, Education and Childcare - (continued)
Active Day, Inc. *
One stop L + 6.50%
(c)
8.60% 12/2021 $ 1,215 $ 1,235 0.1 % $ 1,215
Active Day, Inc.
Senior loan L + 6.50%
(c)
8.60% 12/2021 967 1,006 — 967
Active Day, Inc. *
One stop L + 6.50%
(c)
8.60% 12/2021 839 852 — 839
Active Day, Inc.
One stop L + 6.50%
(c)(f)
8.60% 12/2021 70 70 — 70
Active Day, Inc. (5)
One stop L + 6.50%
N/A (6)
12/2021 — (1) — —
Acuity Eyecare Holdings, LLC
One stop L + 6.25%
(c)
8.37% 03/2023 5,990 6,108 0.3 5,990
Acuity Eyecare Holdings, LLC
One stop L + 6.25%
(b)(c)
8.43% 03/2023 5,643 5,799 0.3 5,643
Acuity Eyecare Holdings, LLC ^
One stop L + 6.25%
(c)
8.35% 03/2023 3,293 3,434 0.1 3,293
Acuity Eyecare Holdings, LLC
One stop L + 6.25%
(c)
8.39% 03/2023 1,593 1,656 0.1 1,593
Acuity Eyecare Holdings, LLC
One stop L + 6.25%
(c)
8.42% 03/2023 796 830 — 796
Acuity Eyecare Holdings, LLC
One stop L + 6.25%
N/A (6)
03/2023 — — — —
ADCS Clinics Intermediate Holdings, LLC +
One stop L + 5.75%
(a)
7.79% 05/2022 42,312 42,976 1.9 42,312
ADCS Clinics Intermediate Holdings, LLC *
One stop L + 5.75%
(a)
7.79% 05/2022 212 216 — 212
ADCS Clinics Intermediate Holdings, LLC *
One stop L + 5.75%
(a)
7.85% 05/2022 164 167 — 164
ADCS Clinics Intermediate Holdings, LLC *
One stop L + 5.75%
(a)
7.79% 05/2022 62 64 — 62
ADCS Clinics Intermediate Holdings, LLC
One stop L + 5.75%
(a)
7.79% 05/2022 30 30 — 30
Advanced Pain Management Holdings, Inc. +(7)
Senior loan L + 5.00%
(c)
7.10% 12/2019 5,261 3,281 0.1 3,157
Advanced Pain Management Holdings, Inc. (7)
Senior loan L + 8.50%
(c)
10.60% 12/2019 1,823 3 — 3
Advanced Pain Management Holdings, Inc. +(7)
Senior loan L + 5.00%
(c)
7.10% 12/2019 360 225 — 216
Advanced Pain Management Holdings, Inc. (5)(7)
Senior loan L + 5.00%
(c)
7.10% 12/2019 164 (7) — (7)
Agilitas USA, Inc. *
One stop L + 5.00%
(c)
7.32% 04/2022 10,206 10,252 0.5 10,206
Agilitas USA, Inc.
One stop L + 5.00%
(c)
7.32% 04/2022 20 20 — 20
Apothecary Products, LLC +
Senior loan L + 4.50%
(c)
6.70% 07/2023 3,086 3,228 0.1 3,086
Apothecary Products, LLC
Senior loan L + 4.50%
N/A (6)
07/2023 — — — —
Aris Teleradiology Company, LLC +(7)
Senior loan L + 5.50%
(c)
7.60% 03/2021 5,403 3,244 0.1 1,149
Aris Teleradiology Company, LLC (7)
Senior loan L + 5.50%
(b)(c)(d)
7.66% 03/2021 1,084 684 — 220
Aspen Medical Products, LLC #+!~
One stop L + 5.25%
(a)(c)
7.30% 06/2025 4,303 4,389 0.2 4,303
Aspen Medical Products, LLC
One stop L + 5.25%
N/A (6)
06/2025 — — — —
BIO18 Borrower, LLC
One stop L + 5.25%
(a)
7.30% 11/2024 11,188 11,231 0.5 11,188
BIO18 Borrower, LLC
One stop L + 5.25%
(a)
7.30% 11/2024 66 66 — 66
BIO18 Borrower, LLC (5)
One stop L + 5.25%
N/A (6)
11/2024 — (4) — —
BIOVT, LLC ^*
One stop L + 5.75%
(a)
7.79% 01/2021 34,487 35,136 1.6 34,487
BIOVT, LLC #!~
One stop L + 5.75%
(a)
7.79% 01/2021 2,094 2,179 0.1 2,094
BIOVT, LLC
One stop L + 5.75%
(a)
7.79% 01/2021 1,966 2,045 0.1 1,966
BIOVT, LLC
One stop L + 5.75%
N/A (6)
01/2021 — — — —
BIOVT, LLC
One stop L + 5.75%
N/A (6)
01/2021 — — — —
Blades Buyer, Inc. #+!~
Senior loan L + 4.50%
(b)(c)
6.75% 08/2025 2,848 2,879 0.1 2,827
Blades Buyer, Inc.
Senior loan L + 4.50%
N/A (6)
08/2025 — — — —
Blades Buyer, Inc. (5)
Senior loan L + 4.50%
N/A (6)
08/2025 — (8) — (8)
CLP Healthcare Services, Inc. ^
Senior loan L + 5.25%
(c)
7.37% 12/2020 4,762 4,788 0.2 4,762
CMI Parent Inc. #+!~
Senior loan L + 4.25%
(a)
6.29% 08/2025 6,700 6,852 0.3 6,634
CMI Parent Inc. (5)
Senior loan L + 4.25%
N/A (6)
08/2025 — (2) — (4)
CRH Healthcare Purchaser, Inc. #+!~
Senior loan L + 4.50%
(c)
6.60% 12/2024 14,011 14,203 0.6 14,011
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 — (3) — —
DCA Investment Holding, LLC ^*+
One stop L + 5.25%
(c)
7.35% 07/2021 31,737 32,216 1.4 31,737
DCA Investment Holding, LLC ^*#+!~
One stop L + 5.25%
(c)
7.35% 07/2021 27,496 28,087 1.2 27,496
DCA Investment Holding, LLC *
One stop L + 5.25%
(c)
7.35% 07/2021 8,405 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 Cost Percentage of Net Assets
Fair Value (4)
Healthcare, Education and Childcare - (continued)
DCA Investment Holding, LLC
One stop L + 5.25%
(c)
7.35% 07/2021 $ 4,074 $ 4,244 0.2 % $ 4,074
DCA Investment Holding, LLC
One stop L + 5.25%
(c)
7.35% 07/2021 3,706 3,860 0.2 3,706
DCA Investment Holding, LLC *
One stop L + 5.25%
(c)
7.35% 07/2021 2,537 2,643 0.1 2,537
DCA Investment Holding, LLC
One stop L + 5.25%
(c)
7.35% 07/2021 678 706 — 678
DCA Investment Holding, LLC
One stop P + 4.25%
(f)
9.25% 07/2021 309 303 — 309
DCA Investment Holding, LLC *
One stop L + 5.25%
(c)
7.35% 07/2021 300 306 — 300
DCA Investment Holding, LLC *
One stop L + 5.25%
(c)
7.35% 07/2021 94 95 — 94
Deca Dental Management LLC ^*
One stop L + 6.00%
(c)
8.10% 12/2021 11,386 11,690 0.5 11,386
Deca Dental Management LLC #!~
One stop L + 6.00%
(a)(c)
8.11% 12/2021 1,385 1,423 0.1 1,385
Deca Dental Management LLC #+!~
One stop L + 6.00%
(c)
8.10% 12/2021 999 1,026 0.1 999
Deca Dental Management LLC
One stop L + 6.00%
(a)(c)
8.21% 12/2021 741 771 — 741
Deca Dental Management LLC
One stop L + 6.00%
(a)(c)
8.12% 12/2021 32 31 — 32
Deca Dental Management LLC
One stop L + 6.00%
N/A (6)
12/2021 — — — —
Dental Holdings Corporation
One stop L + 6.00%
(c)
8.12% 02/2020 10,226 10,340 0.5 10,226
Dental Holdings Corporation *
One stop L + 6.00%
(c)
8.12% 02/2020 1,632 1,651 0.1 1,632
Dental Holdings Corporation
One stop L + 6.00%
(c)
8.12% 02/2020 828 837 — 828
Elite Dental Partners LLC *
One stop L + 5.25%
(a)
7.29% 06/2023 14,145 13,994 0.6 13,437
Elite Dental Partners LLC
One stop L + 5.25%
(a)
7.29% 06/2023 1,874 1,862 0.1 1,781
Elite Dental Partners LLC
One stop L + 5.25%
(a)
7.29% 06/2023 1,757 1,746 0.1 1,669
Elite Dental Partners LLC #+!~
One stop L + 5.25%
(a)
7.29% 06/2023 1,676 1,665 0.1 1,592
Elite Dental Partners LLC #!~
One stop L + 5.25%
(a)
7.29% 06/2023 1,607 1,596 0.1 1,527
Elite Dental Partners LLC
One stop L + 5.25%
(a)
7.29% 06/2023 200 198 — 190
Elite Dental Partners LLC (5)
One stop L + 5.25%
N/A (6)
06/2023 — (6) — —
ERG Buyer, LLC *
One stop L + 5.50%
(c)
7.60% 05/2024 19,330 19,265 0.8 18,749
ERG Buyer, LLC
One stop P + 4.50%
(f)
9.50% 05/2024 20 14 — 12
ERG Buyer, LLC (5)
One stop L + 5.50%
N/A (6)
05/2024 — (9) — —
eSolutions, Inc. ^*+
One stop L + 6.50%
(a)
8.54% 03/2022 70,456 71,662 3.2 70,456
eSolutions, Inc.
One stop L + 6.50%
(d)
8.56% 03/2022 100 100 — 100
Excelligence Learning Corporation ^
One stop L + 6.00%
(a)
8.04% 04/2023 10,171 9,808 0.4 9,154
Eyecare Services Partners Holdings LLC +
One stop L + 6.25%
(c)
8.35% 05/2023 18,129 18,252 0.8 17,766
Eyecare Services Partners Holdings LLC *
One stop L + 6.25%
(c)
8.35% 05/2023 7,951 8,126 0.4 7,792
Eyecare Services Partners Holdings LLC *
One stop L + 6.25%
(c)
8.35% 05/2023 6,964 7,125 0.3 6,825
Eyecare Services Partners Holdings LLC *+
One stop L + 6.25%
(c)
8.35% 05/2023 2,377 2,432 0.1 2,330
Eyecare Services Partners Holdings LLC
One stop L + 6.25%
(c)
8.55% 05/2023 2,027 2,064 0.1 1,986
Eyecare Services Partners Holdings LLC *
One stop L + 6.25%
(c)
8.35% 05/2023 1,526 1,561 0.1 1,495
Eyecare Services Partners Holdings LLC *
One stop L + 6.25%
(c)
8.35% 05/2023 1,128 1,155 0.1 1,106
Eyecare Services Partners Holdings LLC *
One stop L + 6.25%
(c)
8.35% 05/2023 994 1,017 — 974
Eyecare Services Partners Holdings LLC *+
One stop L + 6.25%
(c)
8.35% 05/2023 641 654 — 629
Eyecare Services Partners Holdings LLC
One stop L + 6.25%
(c)
8.51% 05/2023 200 198 — 192
G & H Wire Company, Inc. ^
One stop L + 5.75%
(a)
7.79% 09/2023 5,980 5,980 0.3 5,980
G & H Wire Company, Inc. (5)
One stop L + 5.75%
N/A (6)
09/2022 — (1) — —
Immucor, Inc. +
Senior loan L + 5.00%
(c)
7.10% 06/2021 3,594 3,672 0.2 3,598
Joerns Healthcare, LLC ^*
One stop L + 6.00%
(c)
8.16% 08/2024 535 506 — 535
Joerns Healthcare, LLC ^*
One stop L + 6.00%
(c)
8.16% 08/2024 514 506 — 514
Katena Holdings, Inc. ^
One stop L + 5.50%
(c)
7.60% 06/2021 12,863 13,026 0.6 12,863
Katena Holdings, Inc. ^
One stop L + 5.50%
(c)
7.60% 06/2021 1,256 1,273 0.1 1,256
Katena Holdings, Inc.
One stop L + 5.50%
(c)
7.60% 06/2021 860 869 — 860
Katena Holdings, Inc.
One stop P + 4.50%
(f)
9.50% 06/2021 80 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 Cost Percentage of Net Assets
Fair Value (4)
Healthcare, Education and Childcare - (continued)
Krueger-Gilbert Health Physics, LLC #!~
One stop L + 4.75%
(c)
6.85% 05/2025 $ 2,383 $ 2,368 0.1 % $ 2,383
Krueger-Gilbert Health Physics, LLC
One stop L + 4.75%
(b)(c)
7.02% 05/2025 1,125 1,171 0.1 1,125
Krueger-Gilbert Health Physics, LLC
One stop L + 4.75%
N/A (6)
05/2025 — — — —
Krueger-Gilbert Health Physics, LLC (5)
One stop L + 4.75%
N/A (6)
05/2025 — (2) — —
Lombart Brothers, Inc. ^*#+!~(8)
One stop L + 6.25%
(c)
8.35% 04/2023 29,259 29,693 1.3 29,259
Lombart Brothers, Inc. ^(8)(9)
One stop L + 6.25%
(c)
8.35% 04/2023 3,150 3,196 0.1 3,150
Lombart Brothers, Inc.
One stop P + 5.00%
(f)
10.00% 04/2023 98 99 — 98
Lombart Brothers, Inc. (8)(9)
One stop P + 5.00%
(f)
10.00% 04/2023 14 15 — 14
MD Now Holdings, Inc. +
One stop L + 5.00%
(c)
7.10% 08/2024 14,690 14,885 0.7 14,690
MD Now Holdings, Inc. (5)
One stop L + 5.00%
N/A (6)
08/2024 — (1) — —
MD Now Holdings, Inc. (5)
One stop L + 5.00%
N/A (6)
08/2024 — (1) — —
MWD Management, LLC & MWD Services, Inc. *
One stop L + 5.25%
(c)
7.35% 06/2023 7,088 7,074 0.3 6,946
MWD Management, LLC & MWD Services, Inc. ^
One stop L + 5.25%
(c)
7.35% 06/2023 4,564 4,670 0.2 4,472
MWD Management, LLC & MWD Services, Inc. (5)
One stop L + 5.25%
N/A (6)
06/2022 — (3) — (4)
Oliver Street Dermatology Holdings, LLC
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 19,200 17,574 0.6 14,400
Oliver Street Dermatology Holdings, LLC *
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 2,241 1,916 0.1 1,680
Oliver Street Dermatology Holdings, LLC
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 2,099 1,912 0.1 1,575
Oliver Street Dermatology Holdings, LLC ^+
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 1,577 1,344 0.1 1,183
Oliver Street Dermatology Holdings, LLC *+
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 1,393 1,188 0.1 1,045
Oliver Street Dermatology Holdings, LLC *+
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 1,213 1,034 — 910
Oliver Street Dermatology Holdings, LLC ^+
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 944 805 — 708
Oliver Street Dermatology Holdings, LLC *+
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 819 698 — 614
Oliver Street Dermatology Holdings, LLC #+!~
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 505 430 — 379
Oliver Street Dermatology Holdings, LLC
One stop L + 7.25%
(c)(f)
8.35% cash/1.00% PIK 05/2022 289 263 — 215
Oliver Street Dermatology Holdings, LLC ^
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 98 89 — 74
Oliver Street Dermatology Holdings, LLC *
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 88 81 — 66
Oliver Street Dermatology Holdings, LLC ^
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 70 63 — 52
Oliver Street Dermatology Holdings, LLC ^
One stop L + 7.25%
(c)
8.35% cash/1.00% PIK 05/2022 64 59 — 48
ONsite Mammography, LLC
One stop L + 6.75%
(a)
8.79% 11/2023 5,842 5,920 0.3 5,842
ONsite Mammography, LLC
One stop L + 6.75%
(a)
8.79% 11/2023 1,031 1,075 0.1 1,031
ONsite Mammography, LLC
One stop L + 6.75%
(a)
8.79% 11/2023 100 102 — 100
Pinnacle Treatment Centers, Inc.
One stop L + 5.75%
(c)
8.01% 08/2021 19,329 19,650 0.9 19,329
Pinnacle Treatment Centers, Inc. #+!~
One stop L + 5.75%
(c)
8.01% 08/2021 716 730 — 716
Pinnacle Treatment Centers, Inc.
One stop L + 5.75%
(c)
8.01% 08/2021 347 360 — 347
Pinnacle Treatment Centers, Inc.
One stop L + 5.75%
(c)
8.01% 08/2021 188 193 — 188
Pinnacle Treatment Centers, Inc. ^
One stop L + 5.75%
(c)
8.01% 08/2021 108 111 — 108
Pinnacle Treatment Centers, Inc.
One stop L + 5.75%
(c)(f)
8.53% 08/2021 102 103 — 102
PPT Management Holdings, LLC +
One stop L + 6.75%
(a)(c)
8.10% cash/0.75% PIK 12/2022 24,533 22,536 0.9 20,846
PPT Management Holdings, LLC
One stop L + 6.75%
(a)(c)
8.10% cash/0.75% PIK 12/2022 302 285 — 256
PPT Management Holdings, LLC
One stop L + 6.75%
(a)(c)
8.10% cash/0.75% PIK 12/2022 178 168 — 152
PPT Management Holdings, LLC
One stop L + 6.75%
(a)(c)
8.10% cash/0.75% PIK 12/2022 86 76 — 74
PPT Management Holdings, LLC (5)
One stop L + 6.75%
(a)(c)
8.10% cash/0.75% PIK 12/2022 16 (17) — (46)
Pyramid Healthcare, Inc. *+
One stop L + 6.50%
(c)
8.78% 08/2020 1,459 1,467 0.1 1,459
Pyramid Healthcare, Inc.
One stop L + 6.50%
(c)(f)
8.78% 08/2020 337 347 — 337
Pyramid Healthcare, Inc.
One stop L + 6.50%
(c)
8.62% 08/2020 113 117 — 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 Cost Percentage of Net Assets
Fair Value (4)
Healthcare, Education and Childcare - (continued)
Riverchase MSO, LLC *
Senior loan L + 5.75%
(c)
7.85% 10/2022 $ 9,720 $ 9,901 0.4 % $ 9,720
Riverchase MSO, LLC
Senior loan P + 4.75%
(f)
9.75% 10/2022 26 26 — 26
RXH Buyer Corporation ^*
One stop L + 5.75%
(c)
7.85% 09/2021 27,814 28,193 1.3 27,814
RXH Buyer Corporation *
One stop L + 5.75%
(c)
7.85% 09/2021 3,147 3,192 0.1 3,147
RXH Buyer Corporation
One stop L + 5.75%
(c)(f)
8.78% 09/2021 158 159 — 158
SLMP, LLC ^
One stop L + 6.00%
(a)
8.04% 05/2023 12,073 12,176 0.5 12,073
SLMP, LLC ^
One stop L + 6.00%
(a)
8.04% 05/2023 5,813 6,060 0.3 5,813
SLMP, LLC
Subordinated debt N/A 7.50% PIK 05/2027 223 229 — 223
SLMP, LLC (5)
One stop L + 6.00%
N/A (6)
05/2023 — (1) — —
SLMP, LLC (5)
One stop L + 6.00%
N/A (6)
05/2023 — (1) — —
Spear Education, LLC ^
One stop L + 5.75%
(c)
8.07% 12/2019 7,964 8,098 0.4 7,964
Spear Education, LLC *
One stop L + 5.75%
(c)
8.07% 12/2019 249 256 — 249
Spear Education, LLC
One stop L + 5.75%
N/A (6)
12/2019 — — — —
Summit Behavioral Healthcare, LLC ^
Senior loan L + 4.75%
(c)
6.87% 10/2023 11,065 10,961 0.5 10,512
Summit Behavioral Healthcare, LLC
Senior loan L + 4.75%
(c)
6.87% 10/2023 180 178 — 171
Summit Behavioral Healthcare, LLC
Senior loan L + 4.75%
(c)
6.87% 10/2023 144 141 — 136
WHCG Management, LLC *
Senior loan L + 6.00%
(c)
8.10% 03/2023 6,256 6,405 0.3 6,256
WHCG Management, LLC
Senior loan L + 6.00%
(c)
8.11% 03/2023 200 204 — 200
WHCG Management, LLC (5)
Senior loan L + 6.00%
N/A (6)
03/2023 — (4) — —
WIRB-Copernicus Group, Inc. ^*#!~
Senior loan L + 4.25%
(c)
6.35% 08/2022 24,583 25,145 1.1 24,583
WIRB-Copernicus Group, Inc. (5)
Senior loan L + 4.25%
N/A (6)
08/2022 — (1) — —
WIRB-Copernicus Group, Inc. (5)
Senior loan L + 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 loan L + 4.50%
(a)
6.54% 02/2022 1,389 1,412 0.1 1,389
CST Buyer Company ^
One stop L + 5.00%
(a)
7.04% 03/2023 5,347 5,441 0.2 5,347
CST Buyer Company
One stop L + 5.00%
N/A (6)
03/2023 — — — —
Plano Molding Company, LLC ^+
One stop L + 7.00%
(a)
9.04% 05/2021 14,748 14,698 0.6 14,158
21,484 21,551 0.9 20,894
Hotels, Motels, Inns, and Gaming
Davidson Hotel Company, LLC +
One stop L + 5.25%
(a)(c)
7.29% 07/2024 8,544 8,476 0.4 8,459
Davidson Hotel Company, LLC (5)
One stop L + 5.25%
N/A (6)
07/2024 — (13) — (27)
Davidson Hotel Company, LLC (5)
One stop L + 5.25%
N/A (6)
07/2024 — — — (11)
Davidson Hotel Company, LLC (5)
One stop L + 5.25%
N/A (6)
07/2024 — — — (2)
8,544 8,463 0.4 8,419
Insurance
Captive Resources Midco, LLC ^*#+!~
One stop L + 6.00%
(c)
8.20% 05/2025 54,907 55,075 2.5 54,907
Captive Resources Midco, LLC (5)
One stop L + 6.00%
N/A (6)
05/2025 — (28) — —
Captive Resources Midco, LLC (5)
One stop L + 6.00%
N/A (6)
05/2025 — (27) — —
Integrity Marketing Acquisition, LLC #+!~
Senior loan L + 5.75%
(c)
7.88% 08/2025 2,489 2,490 0.1 2,452
Integrity Marketing Acquisition, LLC
Senior loan L + 5.75%
N/A (6)
08/2025 — — — —
Integrity Marketing Acquisition, LLC (5)
Senior loan L + 5.75%
N/A (6)
08/2025 — (5) — (12)
Integrity Marketing Acquisition, LLC (5)
Senior loan L + 5.75%
N/A (6)
08/2025 — (3) — (8)
J.S. Held Holdings, LLC #+!~
One stop L + 6.00%
(c)
8.10% 07/2025 2,930 2,944 0.1 2,930
J.S. Held Holdings, LLC
One stop P + 5.00%
(f)
10.00% 07/2025 28 21 — 28
J.S. Held Holdings, LLC (5)
One stop L + 6.00%
N/A (6)
07/2025 — (38) — —
Orchid Underwriters Agency, LLC #+!~
Senior loan L + 4.50%
(c)
6.70% 12/2024 4,231 4,295 0.2 4,231
Orchid Underwriters Agency, LLC
Senior loan L + 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 Cost Percentage of Net Assets
Fair Value (4)
Insurance - (continued)
Orchid Underwriters Agency, LLC (5)
Senior loan L + 4.50%
N/A (6)
12/2024 $ — $ (1) — % $ —
RSC Acquisition, Inc. #+!~
Senior loan L + 4.25%
(a)(b)(c)(f)
6.40% 11/2022 36,746 38,166 1.7 36,746
RSC Acquisition, Inc. *
Senior loan L + 4.25%
(b)
6.40% 11/2022 2,280 2,261 0.1 2,280
RSC Acquisition, Inc.
Senior loan L + 4.25%
N/A (6)
11/2021 — — — —
RSC Acquisition, Inc. (5)
Senior loan L + 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 loan L + 4.25%
(a)
6.29% 07/2025 2,019 2,033 0.1 2,019
CR Fitness Holdings, LLC
Senior loan L + 4.25%
(c)
6.55% 07/2025 67 61 — 67
CR Fitness Holdings, LLC
Senior loan L + 4.25%
N/A (6)
07/2025 — — — —
EOS Fitness Opco Holdings, LLC *
One stop L + 4.75%
(c)
6.85% 01/2025 8,763 8,904 0.4 8,763
EOS Fitness Opco Holdings, LLC
One stop L + 4.75%
(c)
6.86% 01/2025 334 347 — 334
EOS Fitness Opco Holdings, LLC
One stop P + 3.75%
(f)
8.75% 01/2025 12 11 — 12
PADI Holdco, Inc. *
One stop L + 5.75%
(c)
7.86% 04/2023 21,989 22,385 1.0 21,989
PADI Holdco, Inc. #+!~(8)(9)
One stop E + 5.75%
(g)
5.75% 04/2023 20,870 21,387 0.9 19,859
PADI Holdco, Inc.
One stop L + 5.75%
(c)
7.96% 04/2022 182 185 — 182
Planet Fit Indy 10 LLC+
One stop L + 5.25%
(c)
7.35% 07/2025 16,828 16,721 0.8 16,828
Planet Fit Indy 10 LLC
One stop L + 5.25%
(c)
7.46% 07/2025 2,337 2,396 0.1 2,337
Planet Fit Indy 10 LLC
One stop L + 5.25%
(c)
7.35% 07/2025 30 29 — 30
Planet Fit Indy 10 LLC (5)
One stop L + 5.25%
N/A (6)
07/2025 — (8) — —
Self Esteem Brands, LLC ^*
Senior loan L + 4.25%
(a)
6.29% 02/2022 30,835 31,428 1.4 30,835
Self Esteem Brands, LLC
Senior loan P + 3.25%
(f)
8.25% 02/2022 490 485 — 490
Sunshine Sub, LLC #!~
One stop L + 4.75%
(a)
6.79% 05/2024 13,057 13,184 0.6 13,057
Sunshine Sub, LLC
One stop L + 4.75%
(a)
6.79% 05/2024 5,711 5,946 0.3 5,711
Sunshine Sub, LLC (5)
One stop L + 4.75%
N/A (6)
05/2024 — (1) — —
Teaching Company, The *
One stop L + 4.75%
(c)
6.93% 07/2023 17,878 18,119 0.8 17,878
Teaching Company, The
One stop L + 4.75%
(a)(f)
6.77% 07/2023 24 24 — 24
Titan Fitness, LLC *
One stop L + 4.75%
(a)(c)
6.88% 02/2025 30,625 31,165 1.4 30,625
Titan Fitness, LLC (5)
One stop L + 4.75%
N/A (6)
02/2025 — (2) — —
Titan Fitness, LLC (5)
One stop L + 4.75%
N/A (6)
02/2025 — (2) — —
WBZ Investment LLC
One stop L + 5.50%
(a)
7.54% 09/2024 8,525 8,597 0.4 8,525
WBZ Investment LLC
One stop L + 5.50%
(a)
7.54% 09/2024 849 884 — 849
WBZ Investment LLC
One stop L + 5.50%
(a)
7.54% 09/2024 457 475 — 457
WBZ Investment LLC
One stop P + 4.50%
(f)
9.50% 09/2024 10 10 — 10
181,892 184,763 8.2 180,881
Oil and Gas
Drilling Info Holdings, Inc. *#+!~
Senior loan L + 4.25%
(a)
6.29% 07/2025 35,612 36,252 1.6 35,612
Drilling Info Holdings, Inc. (5)
Senior loan L + 4.25%
N/A (6)
07/2023 — (2) — —
Drilling Info Holdings, Inc. (5)
Senior loan L + 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 stop L + 5.50%
(c)
7.60% 11/2022 10,337 10,503 0.5 10,337
Georgica Pine Clothiers, LLC *
One stop L + 5.50%
(c)
7.60% 11/2022 6,479 6,587 0.3 6,479
Georgica Pine Clothiers, LLC ^
One stop L + 5.50%
(c)
7.60% 11/2022 902 918 — 902
Georgica Pine Clothiers, LLC *
One stop L + 5.50%
(c)
7.60% 11/2022 633 645 — 633
Georgica Pine Clothiers, LLC
One stop L + 5.50%
(c)
7.73% 11/2022 50 50 — 50
IMPLUS Footwear, LLC #+!~
One stop L + 6.25%
(c)
8.35% 04/2024 30,462 30,970 1.4 30,462
IMPLUS Footwear, LLC #+!~
One stop L + 6.25%
(c)
8.41% 04/2024 5,202 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 Cost Percentage of Net Assets
Fair Value (4)
Personal and Non Durable Consumer Products (Mfg. Only) - (continued)
IMPLUS Footwear, LLC
One stop L + 6.25%
(c)
8.35% 04/2024 $ 750 $ 781 — % $ 750
Orthotics Holdings, Inc. *(8)
One stop L + 6.00%
(a)
8.04% 05/2020 11,738 11,799 0.5 11,504
Orthotics Holdings, Inc. *(8)(9)
One stop L + 6.00%
(a)
8.04% 05/2020 1,924 1,934 0.1 1,886
Orthotics Holdings, Inc. (5)
One stop L + 6.00%
N/A (6)
05/2020 — (1) — —
WU Holdco, Inc. #!~
One stop L + 5.50%
(c)
7.60% 03/2026 3,016 3,110 0.1 3,016
WU Holdco, Inc.
One stop L + 5.50%
(c)
7.62% 03/2026 58 61 — 58
WU Holdco, Inc.
One stop L + 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 stop L + 5.00%
(c)(d)
7.04% 07/2026 25,636 25,716 1.1 25,379
Blue River Pet Care, LLC (5)
One stop L + 5.00%
N/A (6)
07/2026 — (129) — (129)
Blue River Pet Care, LLC (5)
One stop L + 5.00%
N/A (6)
08/2025 — (4) — (4)
Captain D's, LLC ^
Senior loan L + 4.50%
(a)(c)
6.54% 12/2023 6,021 6,078 0.3 6,021
Captain D's, LLC
Senior loan L + 4.50%
(a)(c)(f)
7.48% 12/2023 40 40 — 40
Clarkson Eyecare LLC *+
One stop L + 6.25%
(c)
8.35% 04/2021 52,934 54,106 2.3 51,875
Clarkson Eyecare LLC #+!~
One stop L + 6.25%
(c)
8.37% 04/2021 6,703 6,778 0.3 6,569
Clarkson Eyecare LLC
One stop L + 6.25%
(c)
8.38% 04/2021 1,512 1,496 0.1 1,430
Clarkson Eyecare LLC
One stop L + 6.25%
(c)
8.35% 04/2021 1,236 1,266 0.1 1,211
Clarkson Eyecare LLC #!~
One stop L + 6.25%
(c)
8.39% 04/2021 150 147 — 147
Clarkson Eyecare LLC
One stop L + 6.25%
(c)
8.35% 04/2021 37 36 — 36
Clarkson Eyecare LLC
One stop L + 6.25%
(c)
8.35% 04/2021 32 31 — 31
Clarkson Eyecare LLC
One stop L + 6.25%
(c)(f)
8.38% 04/2021 32 32 — 31
Clarkson Eyecare LLC (5)
One stop L + 6.25%
N/A (6)
04/2021 — (14) — (15)
Community Veterinary Partners, LLC ^
One stop L + 5.50%
(a)
7.54% 10/2021 2,205 2,290 0.1 2,205
Community Veterinary Partners, LLC
One stop L + 5.50%
(a)
7.54% 10/2021 1,101 1,143 0.1 1,101
Community Veterinary Partners, LLC #!~
One stop L + 5.50%
(a)
7.54% 10/2021 873 906 — 873
Community Veterinary Partners, LLC
One stop L + 5.50%
(a)
7.54% 10/2021 741 770 — 741
Community Veterinary Partners, LLC #!~
One stop L + 5.50%
(a)
7.54% 10/2021 657 683 — 657
Community Veterinary Partners, LLC #!~
One stop L + 5.50%
(a)
7.54% 10/2021 585 608 — 585
Community Veterinary Partners, LLC
One stop L + 5.50%
(a)
7.54% 10/2021 315 310 — 315
Community Veterinary Partners, LLC *
One stop L + 5.50%
(a)
7.54% 10/2021 196 200 — 196
Community Veterinary Partners, LLC
One stop L + 5.50%
(a)
7.54% 10/2021 50 49 — 50
Imperial Optical Midco Inc.
One stop L + 4.75%
(b)(c)
6.87% 08/2023 3,650 3,710 0.2 3,614
Imperial Optical Midco Inc. *
One stop L + 4.75%
(b)
6.84% 08/2023 2,846 2,820 0.1 2,817
Imperial Optical Midco Inc.
One stop L + 4.75%
(b)(c)
6.86% 08/2023 1,934 1,996 0.1 1,915
Imperial Optical Midco Inc.
One stop L + 4.75%
(b)
6.84% 08/2023 1,260 1,300 0.1 1,247
Imperial Optical Midco Inc.
One stop L + 4.75%
(b)(c)
6.90% 08/2023 1,147 1,183 0.1 1,135
Imperial Optical Midco Inc.
One stop L + 4.75%
(b)
6.84% 08/2023 125 118 — 118
Imperial Optical Midco Inc.
One stop L + 4.75%
N/A (6)
08/2023 — — — —
Midwest Veterinary Partners, LLC +
One stop L + 4.75%
(a)
6.79% 07/2025 4,317 4,238 0.2 4,274
Midwest Veterinary Partners, LLC
One stop L + 4.75%
(a)(b)(c)
6.81% 07/2025 136 135 — 134
Midwest Veterinary Partners, LLC (5)
One stop L + 4.75%
N/A (6)
07/2025 — (51) — (52)
PPV Intermediate Holdings II, LLC
One stop L + 5.00%
(c)
7.56% 05/2020 2,309 2,398 0.1 2,309
PPV Intermediate Holdings II, LLC
One stop N/A 7.90% PIK 05/2023 22 23 — 22
PPV Intermediate Holdings II, LLC
One stop P + 4.00%
(f)
9.00% 05/2023 18 17 — 18
Ruby Slipper Cafe LLC, The *
One stop L + 7.50%
(c)
9.60% 01/2023 1,084 1,080 0.1 1,084
Ruby Slipper Cafe LLC, The
One stop L + 7.50%
(c)
9.60% 01/2023 602 620 — 602
Ruby Slipper Cafe LLC, The
One stop L + 7.50%
(c)
9.60% 01/2023 10 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 Cost Percentage of Net Assets
Fair Value (4)
Personal, Food and Miscellaneous Services - (continued)
Southern Veterinary Partners, LLC *
One stop L + 5.50%
(a)
7.54% 05/2025 $ 5,388 $ 5,410 0.2 % $ 5,388
Southern Veterinary Partners, LLC *
One stop L + 5.50%
(a)
7.54% 05/2025 3,799 3,959 0.2 3,799
Southern Veterinary Partners, LLC #!~
One stop L + 5.50%
(a)
7.54% 05/2025 2,358 2,454 0.1 2,358
Southern Veterinary Partners, LLC
One stop L + 5.50%
(c)
7.54% 05/2025 2,207 2,205 0.1 2,207
Southern Veterinary Partners, LLC *
One stop L + 5.50%
(a)
7.54% 05/2025 2,068 2,152 0.1 2,068
Southern Veterinary Partners, LLC
One stop L + 5.50%
(a)
7.54% 05/2025 1,626 1,693 0.1 1,626
Southern Veterinary Partners, LLC
One stop L + 5.50%
(a)
7.54% 05/2025 1,518 1,581 0.1 1,518
Southern Veterinary Partners, LLC
One stop L + 5.50%
(a)
7.54% 05/2025 1,514 1,576 0.1 1,514
Southern Veterinary Partners, LLC #!~
One stop L + 5.50%
(a)
7.54% 05/2025 1,291 1,344 0.1 1,291
Southern Veterinary Partners, LLC *
One stop L + 5.50%
(a)
7.54% 05/2025 1,198 1,246 0.1 1,198
Southern Veterinary Partners, LLC *
One stop L + 5.50%
(a)
7.54% 05/2025 1,094 1,140 0.1 1,094
Southern Veterinary Partners, LLC *
One stop L + 5.50%
(a)
7.54% 05/2025 920 958 — 920
Southern Veterinary Partners, LLC *
One stop L + 5.50%
(a)
7.54% 05/2025 818 853 — 818
Southern Veterinary Partners, LLC (5)
One stop L + 5.50%
N/A (6)
05/2023 — (1) — —
Southern Veterinary Partners, LLC (5)
One stop L + 5.50%
N/A (6)
05/2025 — (1) — —
Veterinary Specialists of North America, LLC *
Senior loan L + 4.25%
(a)
6.29% 04/2025 42,076 43,803 1.9 42,076
Veterinary Specialists of North America, LLC
Senior loan L + 4.25%
(a)
6.29% 04/2025 1,459 1,522 0.1 1,459
Veterinary Specialists of North America, LLC (5)
Senior loan L + 4.25%
N/A (6)
04/2025 — (3) — —
Veterinary Specialists of North America, LLC (5)
Senior loan L + 4.25%
N/A (6)
04/2025 — (7) — —
Wetzel's Pretzels, LLC *
One stop L + 6.75%
(a)
8.79% 09/2021 17,023 17,316 0.8 17,023
Wetzel's Pretzels, LLC
One stop L + 6.75%
(a)
8.79% 09/2021 60 61 — 60
206,933 211,396 9.5 205,009
Printing and Publishing
Brandmuscle, Inc. ^
Senior loan L + 5.00%
(c)
7.10% 12/2021 1,139 1,163 0.1 1,145
Messenger, LLC #+!~
One stop L + 6.00%
(a)(f)
8.05% 08/2023 9,145 9,255 0.4 9,053
Messenger, LLC
One stop P + 5.00%
(f)
10.00% 08/2023 36 37 — 36
Messenger, LLC (5)
One stop L + 6.00%
N/A (6)
08/2023 — (3) — (3)
10,320 10,452 0.5 10,231
Retail Stores
2nd Ave. LLC
One stop L + 5.50%
(c)
7.65% 09/2025 5,959 5,856 0.3 5,900
2nd Ave. LLC (5)
One stop L + 5.50%
N/A (6)
09/2025 — — — (1)
Batteries Plus Holding Corporation
One stop L + 6.75%
(a)
8.79% 07/2022 22,424 22,782 1.0 22,424
Batteries Plus Holding Corporation (5)
One stop L + 6.75%
N/A (6)
07/2022 — (1) — —
Boot Barn, Inc. #+!~
Senior loan L + 4.50%
(c)
6.60% 06/2023 7,596 7,770 0.3 7,596
Cycle Gear, Inc. ^+
One stop L + 5.00%
(c)
7.32% 01/2021 17,784 18,023 0.8 17,784
Cycle Gear, Inc. ^
One stop L + 5.00%
(c)
7.32% 01/2021 1,295 1,325 0.1 1,295
DTLR, Inc. ^*+
One stop L + 6.50%
(c)
8.77% 08/2022 41,813 42,484 1.9 41,813
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)
8.35% 12/2021 6,297 6,179 0.3 5,919
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)
8.35% 12/2021 2,532 2,485 0.1 2,380
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)
8.35% 12/2021 1,303 1,280 0.1 1,225
Elite Sportswear, L.P. *
Senior loan L + 6.25%
(c)
8.35% 12/2021 427 421 — 402
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)
8.49% 12/2021 252 241 — 205
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)
8.35% 12/2021 198 194 — 186
Elite Sportswear, L.P. *
Senior loan L + 6.25%
(c)
8.35% 12/2021 189 186 — 177
Elite Sportswear, L.P.
Senior loan L + 6.25%
(c)
8.49% 12/2021 7 7 — 6
Feeders Supply Company, LLC
One stop L + 5.75%
(a)
7.79% 04/2021 8,723 8,880 0.4 8,723
Feeders Supply Company, LLC
Subordinated debt N/A 12.50% cash/7.00% PIK 04/2021 138 140 — 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 Cost Percentage of Net Assets
Fair Value (4)
Retail Stores - (continued)
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)
7.70% 11/2024 18,139 18,485 0.8 18,072
Jet Equipment & Tools Ltd. *(8)(12)
One stop L + 5.75%
(a)
7.79% 11/2024 12,490 12,787 0.6 12,490
Jet Equipment & Tools Ltd. #+!~(8)(12)
One stop L + 5.75%
(a)
7.79% 11/2024 4,349 4,437 0.2 4,349
Jet Equipment & Tools Ltd. (5)(8)(9)(12)
One stop L + 5.75%
N/A (6)
11/2024 — (1) — —
Marshall Retail Group LLC, The ^*
One stop L + 6.00%
(c)
8.32% 08/2020 14,935 15,047 0.7 14,935
Marshall Retail Group LLC, The
One stop L + 6.00%
(c)(f)
8.15% 08/2020 830 834 — 830
Mills Fleet Farm Group LLC ^*#+!~
One stop L + 6.25%
(c)
8.29% 10/2024 43,924 44,154 1.9 41,729
Pet Holdings ULC ^*+(8)(12)
One stop L + 5.50%
(c)
7.82% 07/2022 46,974 48,263 2.1 46,974
Pet Holdings ULC ^*(8)(12)
One stop L + 5.50%
(c)
7.82% 07/2022 228 231 — 228
Pet Holdings ULC (5)(8)(12)
One stop L + 5.50%
N/A (6)
07/2022 — (2) — —
Pet Supplies Plus, LLC *+
Senior loan L + 4.50%
(a)
6.54% 12/2024 14,326 14,615 0.6 14,326
Pet Supplies Plus, LLC (5)
Senior loan L + 4.50%
N/A (6)
12/2023 — (1) — —
PetPeople Enterprises, LLC ^
One stop L + 5.00%
(a)
7.33% 09/2023 5,407 5,488 0.2 5,407
PetPeople Enterprises, LLC
One stop L + 5.00%
(a)
7.33% 09/2023 1,098 1,145 0.1 1,098
PetPeople Enterprises, LLC
One stop L + 5.00%
(a)
7.33% 09/2023 90 91 — 90
Sola Franchise, LLC and Sola Salon Studios, LLC
One stop L + 5.25%
(c)
7.35% 10/2024 7,034 7,054 0.3 7,034
Sola Franchise, LLC and Sola Salon Studios, LLC
One stop L + 5.25%
(c)
7.35% 10/2024 1,725 1,797 0.1 1,725
Sola Franchise, LLC and Sola Salon Studios, LLC
One stop L + 5.25%
N/A (6)
10/2024 — — — —
Sola Franchise, LLC and Sola Salon Studios, LLC (5)
One stop L + 5.25%
N/A (6)
10/2024 — (1) — —
Vermont Aus Pty Ltd #!~(8)(9)(11)
One stop L + 5.75%
(c)
6.75% 12/2024 2,201 2,226 0.1 2,151
Vermont Aus Pty Ltd (8)(9)(11)
One stop L + 5.75%
(c)
6.75% 12/2024 26 27 — 26
290,713 294,928 13.0 287,636
Telecommunications
NetMotion Wireless Holdings, Inc. ^*
One stop L + 6.25%
(c)
8.35% 10/2021 11,627 11,832 0.5 11,627
NetMotion Wireless Holdings, Inc.
One stop L + 6.25%
N/A (6)
10/2021 — — — —
11,627 11,832 0.5 11,627
Textiles and Leather
SHO Holding I Corporation #!~
Senior loan L + 5.00%
(c)
7.26% 10/2022 4,066 4,052 0.2 3,903
SHO Holding I Corporation
Senior loan L + 4.00%
(c)
6.31% 10/2021 30 28 — 24
4,096 4,080 0.2 3,927
Utilities
Arcos, LLC #!~
One stop L + 5.75%
(c)
7.85% 02/2021 15,833 16,126 0.7 15,833
Arcos, LLC
One stop L + 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 Stock N/A N/A N/A 2 $ 1,506 — % $ 509
NTS Technical Systems
Preferred stock N/A N/A N/A — 256 — 378
NTS Technical Systems
Preferred stock N/A N/A N/A — 128 — 213
Whitcraft LLC
Common Stock N/A N/A N/A 11 2,285 0.1 2,845
4,175 0.1 3,945
Automobile
Grease Monkey International, LLC
LLC units N/A N/A N/A 803 1,304 0.1 1,741
Polk Acquisition Corp.
LP interest N/A N/A N/A 5 314 — 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 Cost Percentage of Net Assets
Fair Value (4)
Automobile - (continued)
Quick Quack Car Wash Holdings, LLC
LLC units N/A N/A N/A — $ 508 — % $ 528
2,126 0.1 2,489
Beverage, Food and Tobacco
Benihana, Inc.
LLC units N/A N/A N/A 43 699 0.1 960
C. J. Foods, Inc.
Preferred stock N/A N/A N/A — 75 — 577
Cafe Rio Holding, Inc.
Common Stock N/A N/A N/A 5 603 — 650
Global ID Corporation
LLC interest N/A N/A N/A 5 603 — 694
Hopdoddy Holdings, LLC
LLC units N/A N/A N/A 44 217 — 211
Hopdoddy Holdings, LLC
LLC units N/A N/A N/A 20 61 — 60
Mendocino Farms, LLC
Common Stock N/A N/A N/A 169 770 0.1 739
Purfoods, LLC
LLC units N/A N/A N/A 736 1,222 0.1 1,667
Rubio's Restaurants, Inc.
Preferred stock N/A N/A N/A 2 945 0.1 985
Wood Fired Holding Corp.
LLC units N/A N/A N/A 437 444 — 431
Wood Fired Holding Corp.
LLC units N/A N/A N/A 437 — — —
5,639 0.4 6,974
Buildings and Real Estate
Brooks Equipment Company, LLC
Common Stock N/A N/A N/A 10 1,021 0.1 2,376
Paradigm DKD Group, LLC +
LLC units N/A N/A N/A 1,041 — — —
Paradigm DKD Group, LLC +
LLC units N/A N/A N/A 184 70 — 67
Paradigm DKD Group, LLC +
LLC units N/A N/A N/A 37 — — —
1,091 0.1 2,443
Chemicals, Plastics and Rubber
Flexan, LLC
Common Stock N/A N/A N/A 1 — — —
Flexan, LLC
Preferred stock N/A N/A N/A — 137 — 146
Inhance Technologies Holdings LLC
LLC units N/A N/A N/A — 124 — 97
261 — 243
Diversified/Conglomerate Manufacturing
Inventus Power, Inc.
Preferred stock N/A N/A N/A 1 372 — 5
Inventus Power, Inc.
Common Stock N/A N/A N/A 1 — — —
Inventus Power, Inc.
LLC units N/A N/A N/A — 88 — 80
Inventus Power, Inc.
Preferred stock N/A N/A N/A — 20 — 23
Reladyne, Inc.
LP interest N/A N/A N/A 1 931 0.1 1,279
1,411 0.1 1,387
Diversified/Conglomerate Service
Accela, Inc.
LLC units N/A N/A N/A 670 418 — 208
Agility Recovery Solutions Inc.
Preferred stock N/A N/A N/A 97 604 0.1 815
Astute Holdings, Inc.
LP interest N/A N/A N/A — 294 — 348
Calabrio, Inc.
Common Stock N/A N/A N/A 26 205 — 200
Caliper Software, Inc.
Common Stock N/A N/A N/A 221 283 — 322
Caliper Software, Inc.
Preferred stock N/A N/A N/A 3 2,734 0.1 2,862
Caliper Software, Inc.
Preferred stock N/A N/A N/A — 36 — 38
Centrify Corporation
LP interest N/A N/A N/A 263 — — —
Centrify Corporation
LP interest N/A N/A N/A 1 691 — 613
Cloudbees, Inc.
Warrant N/A N/A N/A 93 181 — 239
Cloudbees, Inc.
Preferred stock N/A N/A N/A 71 466 — 455
Confluence Technologies, Inc.
LLC interest N/A N/A N/A 2 286 — 347
Connexin Software, Inc.
LLC interest N/A N/A N/A 154 192 — 217
Digital Guardian, Inc.
Preferred stock N/A N/A N/A 3,562 434 — 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 Cost Percentage of Net Assets
Fair Value (4)
Diversified/Conglomerate Service - (continued)
Digital Guardian, Inc.
Warrant N/A N/A N/A 1,218 $ 225 — % $ 227
Digital Guardian, Inc.
Preferred stock N/A N/A N/A 738 142 — 142
Digital Guardian, Inc.
Warrant N/A N/A N/A 124 33 — 40
DISA Holdings Acquisition Subsidiary Corp.
Common Stock N/A N/A N/A — 154 — 426
GS Acquisitionco, Inc. (15)
LP interest N/A N/A N/A 2 291 — 371
HealthcareSource HR, Inc.
LLC interest N/A N/A N/A — 621 — 810
Hydraulic Authority III Limited (8)(9)(10)
Preferred stock N/A N/A N/A 284 386 — 382
Hydraulic Authority III Limited (8)(9)(10)
Common Stock N/A N/A N/A 6 43 — 77
Internet Truckstop Group LLC
LP interest N/A N/A N/A 408 447 — 438
Kareo, Inc.
Warrant N/A N/A N/A 53 162 — 4
Kareo, Inc.
Warrant N/A N/A N/A 5 6 — 11
Kareo, Inc.
Preferred stock N/A N/A N/A 1 8 — 7
Maverick Bidco Inc.
LLC units N/A N/A N/A 2 723 — 464
MetricStream, Inc.
Warrant N/A N/A N/A 168 263 — 256
MMan Acquisition Co.
Common Stock N/A N/A N/A — 927 0.1 1,306
Namely, Inc.
Warrant N/A N/A N/A 17 28 — 28
Net Health Acquisition Corp.
LP interest N/A N/A N/A 1 1,440 0.1 1,437
Nexus Brands Group, Inc.
LP interest N/A N/A N/A — 444 — 439
Personify, Inc.
LLC units N/A N/A N/A 639 828 0.1 950
Pride Midco, Inc.
Preferred stock N/A N/A N/A 2 2,594 0.1 2,676
Project Alpha Intermediate Holding, Inc.
Common Stock N/A N/A N/A 202 329 — 636
Project Alpha Intermediate Holding, Inc.
Common Stock N/A N/A N/A 1 964 0.1 1,069
Property Brands, Inc.
LLC units N/A N/A N/A 63 766 0.1 839
RegEd Aquireco, LLC
LP interest N/A N/A N/A 3 21 — 24
RegEd Aquireco, LLC
LP interest N/A N/A N/A — 316 — 320
SnapLogic, Inc.
Preferred stock N/A N/A N/A 184 458 — 458
SnapLogic, Inc.
Warrant N/A N/A N/A 69 27 — 27
Vendavo, Inc.
Preferred stock N/A N/A N/A 1,017 1,017 0.1 1,646
Verisys Corporation
Common Stock N/A N/A N/A 579 712 — 786
Vitalyst, LLC
Equity N/A N/A N/A 1 7 — —
Vitalyst, LLC
Preferred stock N/A N/A N/A — 61 — 65
Workforce Software, LLC
Common Stock N/A N/A N/A — 973 0.1 939
Xmatters, Inc. and Alarmpoint, Inc.
Preferred stock N/A N/A N/A 474 494 — 534
Xmatters, Inc. and Alarmpoint, Inc.
Warrant N/A N/A N/A 84 64 — 59
Xmatters, Inc. and Alarmpoint, Inc.
Preferred stock N/A N/A N/A 20 26 — 31
22,824 1.0 25,007
Ecological
Pace Analytical Services, LLC
Common Stock N/A N/A N/A 6 700 0.1 781
Electronics
Appriss Holdings, Inc.
Preferred stock N/A N/A N/A — 173 — 172
Diligent Corporation
Preferred stock N/A N/A N/A 414 1,609 0.1 1,777
Episerver, Inc.
Common Stock N/A N/A N/A 76 807 0.1 813
Project Silverback Holdings Corp.
Preferred stock N/A N/A N/A 3 6 — —
SEI, Inc.
LLC units N/A N/A N/A 547 819 0.1 1,402
Silver Peak Systems, Inc.
Warrant N/A N/A N/A 67 27 — 26
Sloan Company, Inc., The
LLC units N/A N/A N/A 2 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 Cost Percentage of Net Assets
Fair Value (4)
Electronics - (continued)
Sloan Company, Inc., The
LLC units N/A N/A N/A — $ 152 — % $ —
3,606 0.3 4,190
Healthcare, Education and Childcare
Active Day, Inc.
LLC interest N/A N/A N/A 1 1,021 0.1 774
Acuity Eyecare Holdings, LLC
LLC units N/A N/A N/A 1,158 1,334 0.1 1,212
ADCS Clinics Intermediate Holdings, LLC
Preferred stock N/A N/A N/A 1 1,119 0.1 1,018
ADCS Clinics Intermediate Holdings, LLC
Common Stock N/A N/A N/A — 6 — —
Aris Teleradiology Company, LLC
Preferred stock N/A N/A N/A 5 — — —
Aris Teleradiology Company, LLC
Common Stock N/A N/A N/A 2 — — —
Aris Teleradiology Company, LLC
Preferred stock N/A N/A N/A — — — —
Aspen Medical Products, LLC
Common Stock N/A N/A N/A — 77 — 75
BIO18 Borrower, LLC
LLC interest N/A N/A N/A 591 1,190 0.1 1,272
BIOVT, LLC
LLC units N/A N/A N/A — 1,223 0.1 1,663
CMI Parent Inc.
LLC units N/A N/A N/A 2 3 — 3
CMI Parent Inc.
LLC units N/A N/A N/A — 240 — 232
CRH Healthcare Purchaser, Inc.
LP interest N/A N/A N/A 429 469 — 482
DCA Investment Holding, LLC
LLC units N/A N/A N/A 13,890 1,619 0.1 1,908
DCA Investment Holding, LLC
LLC units N/A N/A N/A 140 218 — 528
Deca Dental Management LLC
LLC units N/A N/A N/A 1,008 1,278 0.1 1,358
Dental Holdings Corporation
LLC units N/A N/A N/A 1,277 891 — 185
Elite Dental Partners LLC
Common Stock N/A N/A N/A — 737 — 666
Encore GC Acquisition, LLC (15)
LLC units N/A N/A N/A 26 272 — 278
Encore GC Acquisition, LLC
LLC units N/A N/A N/A 26 52 — 160
ERG Buyer, LLC
LLC units N/A N/A N/A 8 4 — —
ERG Buyer, LLC
LLC units N/A N/A N/A 1 661 — 510
Eyecare Services Partners Holdings LLC
LLC units N/A N/A N/A — 262 — 171
Eyecare Services Partners Holdings LLC
LLC units N/A N/A N/A — 1 — —
G & H Wire Company, Inc.
LLC interest N/A N/A N/A 336 269 — 207
IntegraMed America, Inc.
LLC interest N/A N/A N/A — 417 — 64
Joerns Healthcare, LLC ^*
Common Stock N/A N/A N/A 123 2,852 0.1 1,207
Katena Holdings, Inc.
LLC units N/A N/A N/A 1 573 — 514
Krueger-Gilbert Health Physics, LLC
LLC interest N/A N/A N/A 136 152 — 156
Lombart Brothers, Inc.
Common Stock N/A N/A N/A 1 440 — 559
MD Now Holdings, Inc.
LLC units N/A N/A N/A 15 153 — 152
MWD Management, LLC & MWD Services, Inc.
LLC interest N/A N/A N/A 412 335 — 282
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 — 106
Pinnacle Treatment Centers, Inc.
Common Stock N/A N/A N/A 5 74 — 140
Pinnacle Treatment Centers, Inc.
Preferred stock N/A N/A N/A — 528 — 574
Radiology Partners, Inc.
LLC units N/A N/A N/A 43 55 — 327
Radiology Partners, Inc.
LLC units N/A N/A N/A 11 68 — 83
RXH Buyer Corporation
LP interest N/A N/A N/A 11 973 — 705
Sage Dental Management, LLC
LLC units N/A N/A N/A 3 3 — —
Sage Dental Management, LLC
LLC units N/A N/A N/A — 249 — 5
SLMP, LLC
LLC units N/A N/A N/A 668 789 0.1 843
Spear Education, LLC
LLC units N/A N/A N/A 1 1 — 38
Spear Education, LLC
LLC units N/A N/A N/A — 62 — 82
SSH Corpration
Common Stock N/A N/A N/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 Cost Percentage of Net Assets
Fair Value (4)
Healthcare, Education and Childcare - (continued)
Summit Behavioral Healthcare, LLC (15)
LLC interest N/A N/A N/A 2 $ 98 — % $ 50
Summit Behavioral Healthcare, LLC
LLC interest N/A N/A N/A 2 — — —
Surgical Information Systems, LLC (15)
Common Stock N/A N/A N/A 4 414 — 505
WHCG Management, LLC
LLC units N/A N/A N/A 1 414 — 287
21,986 0.9 19,524
Insurance
Captive Resources Midco, LLC (15)
LLC units N/A N/A N/A 388 — — 436
Orchid Underwriters Agency, LLC
LP interest N/A N/A N/A 78 90 — 96
90 — 532
Leisure, Amusement, Motion Pictures, Entertainment
LMP TR Holdings, LLC
LLC units N/A N/A N/A 712 712 0.1 1,478
PADI Holdco, Inc.
LLC units N/A N/A N/A 1 1,073 0.1 1,114
WBZ Investment LLC
LLC interest N/A N/A N/A 68 117 — 122
WBZ Investment LLC
LLC interest N/A N/A N/A 46 80 — 84
WBZ Investment LLC
LLC interest N/A N/A N/A 38 65 — 69
WBZ Investment LLC
LLC interest N/A N/A N/A 33 58 — 60
WBZ Investment LLC
LLC interest N/A N/A N/A 14 24 — 26
WBZ Investment LLC
LLC interest N/A N/A N/A 1 2 — 2
2,131 0.2 2,955
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC (15)
LLC units N/A N/A N/A 20 291 — 389
Massage Envy, LLC
LLC interest N/A N/A N/A 749 210 0.1 1,776
501 0.1 2,165
Personal, Food and Miscellaneous Services
Blue River Pet Care, LLC
LLC units N/A N/A N/A — 76 — 74
Captain D's, LLC
LLC interest N/A N/A N/A 158 156 — 147
Clarkson Eyecare LLC
LLC units N/A N/A N/A — 275 — 263
Community Veterinary Partners, LLC
Common Stock N/A N/A N/A 4 597 — 730
Midwest Veterinary Partners, LLC
LLC units N/A N/A N/A 6 — — —
Midwest Veterinary Partners, LLC
LLC units N/A N/A N/A — 29 — 29
PPV Intermediate Holdings II, LLC
LLC units N/A N/A N/A 208 198 — 197
R.G. Barry Corporation
Preferred stock N/A N/A N/A — 161 — 120
Ruby Slipper Cafe LLC, The
LLC units N/A N/A N/A 31 373 — 398
Southern Veterinary Partners, LLC
LLC units N/A N/A N/A 147 188 — 409
Southern Veterinary Partners, LLC
LLC units N/A N/A N/A 1 717 0.1 845
Wetzel's Pretzels, LLC
Common Stock N/A N/A N/A — 416 — 507
3,186 0.1 3,719
Printing and Publishing
Brandmuscle, Inc.
LLC interest N/A N/A N/A — 335 — 196
Retail Stores
2nd Ave. LLC
LP interest N/A N/A N/A 653 653 — 653
Batteries Plus Holding Corporation
LP interest N/A N/A N/A 10 1,287 0.1 1,483
Cycle Gear, Inc.
LLC units N/A N/A N/A 27 462 — 662
DTLR, Inc.
LLC interest N/A N/A N/A 4 411 0.1 835
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 — 413
Feeders Supply Company, LLC
Common Stock N/A N/A N/A — — — —
Jet Equipment & Tools Ltd. (8)(9)(12)
LLC units N/A N/A N/A 1 946 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 Cost Percentage of Net Assets
Fair Value (4)
Retail Stores - (continued)
Marshall Retail Group LLC, The
LLC units N/A N/A N/A 15 $ 154 — % $ 149
Paper Source, Inc.
Common Stock N/A N/A N/A 8 1,387 — 363
Pet Holdings ULC (8)(12)
LP interest N/A N/A N/A 677 483 — 282
Pet Supplies Plus, LLC
LLC units N/A N/A N/A 144 181 — 205
Sola Franchise, LLC and Sola Salon Studios, LLC
LLC units N/A N/A N/A 4 496 — 567
Sola Franchise, LLC and Sola Salon Studios, LLC
LLC units N/A N/A N/A 1 101 — 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 stop L + 4.00%
(a)
6.04% 08/2021 $ 962 $ 928 — % $ 793
Uinta Brewing Company (7)(8)
One stop L + 4.00%
(a)(c)
6.04% 08/2021 192 188 — 170
1,154 1,116 — 963
Diversified/Conglomerate Service
Switchfly LLC (8)
One stop L + 3.00%
(c)
5.32% 10/2023 5,363 5,142 0.2 4,827
Switchfly LLC (8)
One stop L + 3.00%
(c)
5.32% 10/2023 447 430 — 403
Switchfly LLC (8)
One stop L + 3.00%
(c)
5.32% 10/2023 34 33 — 30
Switchfly LLC (8)
One stop L + 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 stop L + 11.00%
(a)
11.04% cash/2.00% PIK 05/2020 4,249 4,222 0.2 3,398
Benetech, Inc. (8)
One stop P + 9.75%
(a)(f)
12.61% cash/2.00% PIK 05/2020 581 572 — 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 Stock N/A N/A N/A 153 17 — 82
Diversified/Conglomerate Service
Switchfly LLC (8)
LLC units N/A N/A N/A 3,418 2,322 0.1 2,523
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc. (8)
LLC interest N/A N/A N/A 59 — — 8
Benetech, Inc. (8)
LLC interest N/A N/A N/A 59 — — —
— — 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 Cost Percentage 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 interest N/A N/A N/A 48,356 $ 52,605 2.2 % $ 49,258
Senior Loan Fund LLC (8)(18)
LLC interest N/A N/A N/A 74,882 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
Purchases (cost) (l)
Redemptions
(cost) 		Transfer in/out (cost) Discount
accretion 		Net change in unrealized
gain/(loss) 		Fair value as of September 30, 2019 Net realized gain/(loss) Interest and
fee income 		Dividend
income
Benetech, Inc.
$ 4,496 $ 535 $ (385) $ 205 $ (40) $ (1,064) $ 3,747 $ — $ 623 $ —
Switchfly LLC
2,788 408 — 4,983 (339) (57) 7,783 — 139 —
Uinta Brewing Company (m)
— 155 — 1,023 (44) (89) 1,045 — — —
Total Non-Controlled Affiliates
$ 7,284 $ 1,098 $ (385) $ 6,211 $ (423) $ (1,210) $ 12,575 $ — $ 762 $ —

(l)
Purchases at cost includes amounts related to payment-in-kind (“PIK") interest capitalized and added to the principal balance of the respective loans.
(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 Purchases (cost) Redemptions
(cost) 		Transfer in/out (cost) Discount
accretion 		Net change in unrealized
gain/(loss) 		Fair value as of September 30, 2019 Net realized gain/(loss) Interest and
fee income 		Dividend
income
Senior Loan Fund LLC (n)
$ 71,084 $ 1,750 $ (2,275) $ — $ — $ 3,827 $ 74,386 $ — $ — $ —
GCIC Senior Loan Fund LLC (o)
— — — 52,605 — (3,347) 49,258 — — 1,219
Total Controlled Affiliates
$ 71,084 $ 1,750 $ (2,275) $ 52,605 $ — $ 480 $ 123,644 $ — $ — $ 1,219

(n)
As of September 30, 2019, 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.
(o)
As of September 30, 2019, 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.
(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 six months ended March 31, 2020, interest income included $4,573 and $8,541, respectively, of accretion of discounts. For the three and six months ended March 31, 2019, interest income included $1,977 and $3,930, respectively, of accretion of discounts. For the three and six months ended March 31, 2020, the Company received loan origination fees of $2,530 and $6,825, respectively. For the three and six months ended March 31, 2019, the Company received loan origination fees of $1,604 and $4,652, 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 six months ended March 31, 2020, the Company capitalized PIK interest of $3,015 and $4,648, respectively, into the principal balance of certain debt investments. For the three and six months ended March 31, 2019, the Company capitalized PIK interest of $308 and $851, 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 six months ended March 31, 2020, fee income included $0 and $63, respectively, of prepayment premiums, which fees are non-recurring. For the three and six months ended March 31, 2019, fee income included $46 and $441, respectively, of prepayment premiums, which fees are non-recurring.

For the three and six months ended March 31, 2020, the Company received interest and fee income in cash, which excludes capitalized loan origination fees, in the amounts of $83,599 and $169,222, respectively. For the three and six months ended March 31, 2019, the Company received interest and fee income in cash, which excludes capitalized loan origination fees, in the amounts of $38,475 and $76,125, 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 six months ended March 31, 2020, excluding the Company's investment in LLC equity interests in the SLFs, the Company recorded dividend income of $146 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 six months ended March 31, 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 six months ended March 31, 2019, excluding the Company's investment in LLC equity interests in the SLFs, the Company recorded dividend income of $19 and $58, 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 six months ended March 31, 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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Golub Capital BDC, Inc. and Subsidiaries
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 $66,188 and $13,663 as of March 31, 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 six months ended March 31, 2020, was $12,600 and $24,437, 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 for the three and six months ended March 31, 2020.

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

among other things, the Company is required to meet certain source of income and asset diversification requirements 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 six months ended March 31, 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 March 31, 2020. The Company's tax returns for the 2016 through 2018 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 2019 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. Effective as of August 6, 2019, the Program permits repurchases of up to $150,000 of the Company's common stock. Prior to such date, the Program permitted up to $75,000 of repurchases. The Company
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

did not make any repurchases of its common stock during each of the three and six months ended March 31, 2020 and March 31, 2019.

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 March 31, 2020 and September 30, 2019, the Company had deferred debt issuance costs of $6,137 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 six months ended March 31, 2020, was $733 and $1,304, respectively. Amortization expense for deferred debt issuance costs for the three and six months ended March 31, 2019, was $467 and $1,136, respectively.



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

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 six months ended March 31, 2020, the Income Incentive Fee incurred was $3,847 and $9,751, respectively. For the three and six months ended March 31, 2019, the Income Incentive Fee incurred was $3,735 and $6,196, 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 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
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

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.

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

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 six months ended March 31, 2020, the Company did not accrue a capital gain incentive fee. For the three and six months ended March 31, 2019, the Company had a reversal of the accrual of the capital gain incentive fee of $669 and $1,147, respectively. Changes in the accrual for the capital gain incentive fee are included in incentive fee in the Consolidated Statements of Operations. As of March 31, 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 March 31, 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 $1,486 and $639 as of March 31, 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 six months ended March 31, 2020, were $1,605 and $3,290, respectively. Total expenses reimbursed to the Administrator during the three and six months ended March 31, 2019, were $845 and $1,209, respectively.

As of March 31, 2020 and September 30, 2019, included in accounts payable and other liabilities were $856 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 Administrator and were assumed in the Merger and were paid by the Company to the Administrator in December 2019.
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)


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.

Note 4. Investments

Investments as of March 31, 2020 and September 30, 2019 consisted of the following:
As of March 31, 2020 As of September 30, 2019
Principal Amortized
Cost 		Fair
Value 		Principal Amortized
Cost 		Fair
Value
Senior secured $ 720,633 $ 712,769 $ 646,997 $ 601,788 $ 605,606 $ 589,340
One stop 3,705,970 3,732,086 3,470,782 3,514,266 3,559,030 3,474,116
Second lien 20,095 20,353 19,811 19,473 19,745 19,473
Subordinated debt 517 522 514 369 375 369
LLC equity interests in the SLFs (1)(2)
N/A — — N/A 127,487 123,644
Equity N/A 82,269 72,111 N/A 79,527 85,990
Total $ 4,447,215 $ 4,547,999 $ 4,210,215 $ 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 March 31, 2020 As of September 30, 2019
Amortized Cost:
United States
Mid-Atlantic $ 867,201 19.1 % $ 919,868 21.0 %
Midwest 909,074 20.0 985,471 22.4
West 782,170 17.2 748,104 17.0
Southeast 1,049,364 23.1 944,794 21.5
Southwest 478,869 10.5 453,239 10.3
Northeast 323,991 7.1 217,138 4.9
Canada 101,064 2.2 99,823 2.3
United Kingdom 21,258 0.5 21,080 0.5
Australia 2,263 — * 2,253 0.1
Luxembourg 976 — * — —
Andorra 11,769 0.3 — —
Total $ 4,547,999 100.0 % $ 4,391,770 100.0 %
Fair Value:
United States
Mid-Atlantic $ 809,083 19.2 % $ 896,202 20.9 %
Midwest 838,338 19.9 959,894 22.4
West 721,507 17.1 732,599 17.1
Southeast 970,794 23.1 929,922 21.6
Southwest 442,286 10.5 442,744 10.3
Northeast 304,899 7.3 211,920 4.9
Canada 91,280 2.2 97,392 2.3
United Kingdom 19,114 0.5 20,082 0.5
Australia 1,855 — * 2,177 — *
Luxembourg 900 — * — —
Andorra 10,159 0.2 — —
Total $ 4,210,215 100.0 % $ 4,292,932 100.0 %
* 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)

The industry compositions of the portfolio at amortized cost and fair value as of March 31, 2020 and September 30, 2019 were as follows:
As of March 31, 2020 As of September 30, 2019
Amortized Cost:
Aerospace and Defense $ 103,724 2.3 % $ 92,797 2.1 %
Automobile 73,494 1.6 70,401 1.6
Beverage, Food and Tobacco 244,410 5.4 257,594 5.9
Broadcasting and Entertainment — — 2,136 — *
Buildings and Real Estate 58,824 1.3 134,083 3.0
Chemicals, Plastics and Rubber 32,001 0.7 19,184 0.4
Containers, Packaging and Glass 3,844 0.1 — —
Diversified/Conglomerate Manufacturing 147,295 3.2 127,441 2.9
Diversified/Conglomerate Service 1,683,012 37.0 1,470,501 33.5
Ecological 45,774 1.0 44,573 1.0
Electronics 259,214 5.7 257,587 5.9
Finance 19,487 0.4 19,532 0.4
Grocery 7,820 0.2 444 — *
Healthcare, Education and Childcare 854,237 18.8 772,226 17.6
Home and Office Furnishings, Housewares, and Durable Consumer 31,786 0.7 21,551 0.5
Hotels, Motels, Inns, and Gaming 9,605 0.2 8,463 0.2
Insurance 93,629 2.1 105,238 2.4
Investment Funds and Vehicles — — 127,487 2.9
Leisure, Amusement, Motion Pictures, Entertainment 210,424 4.6 186,894 4.3
Mining, Steel, Iron and Non-Precious Metals 4,699 0.1 4,794 0.1
Oil and Gas 56,314 1.2 36,237 0.8
Personal and Non Durable Consumer Products (Mfg. Only) 74,798 1.6 73,146 1.7
Personal, Food and Miscellaneous Services 172,042 3.8 214,582 4.9
Printing and Publishing 18,856 0.4 10,787 0.2
Retail Stores 312,606 6.9 302,054 6.9
Telecommunications 11,214 0.3 11,832 0.3
Textiles and Leather 4,107 0.1 4,080 0.1
Utilities 14,783 0.3 16,126 0.4
Total $ 4,547,999 100.0 % $ 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 March 31, 2020 As of September 30, 2019
Fair Value:
Aerospace and Defense $ 99,163 2.4 % $ 91,651 2.1 %
Automobile 67,899 1.6 69,820 1.6
Beverage, Food and Tobacco 219,909 5.2 252,588 5.9
Broadcasting and Entertainment — — 2,108 0.1
Buildings and Real Estate 56,294 1.3 133,053 3.1
Chemicals, Plastics and Rubber 29,542 0.7 18,922 0.4
Containers, Packaging and Glass 3,609 0.1 — —
Diversified/Conglomerate Manufacturing 131,206 3.1 124,040 2.9
Diversified/Conglomerate Service 1,593,008 37.8 1,442,750 33.6
Ecological 43,223 1.0 43,857 1.0
Electronics 249,348 5.9 249,678 5.8
Finance 18,300 0.4 18,883 0.4
Grocery 7,782 0.2 411 — *
Healthcare, Education and Childcare 766,813 18.2 746,484 17.4
Home and Office Furnishings, Housewares, and Durable Consumer 28,617 0.7 20,894 0.5
Hotels, Motels, Inns, and Gaming 7,258 0.2 8,419 0.2
Insurance 92,131 2.2 104,086 2.4
Investment Funds and Vehicles — — 123,644 2.9
Leisure, Amusement, Motion Pictures, Entertainment 190,671 4.5 183,836 4.3
Mining, Steel, Iron and Non-Precious Metals 3,100 0.1 3,747 0.1
Oil and Gas 52,313 1.2 35,612 0.8
Personal and Non Durable Consumer Products (Mfg. Only) 67,915 1.6 73,444 1.7
Personal, Food and Miscellaneous Services 157,610 3.8 208,728 4.9
Printing and Publishing 16,978 0.4 10,427 0.2
Retail Stores 278,687 6.6 294,463 6.9
Telecommunications 10,836 0.3 11,627 0.3
Textiles and Leather 3,705 0.1 3,927 0.1
Utilities 14,298 0.4 15,833 0.4
Total $ 4,210,215 100.0 % $ 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 SLF 27
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 Company Business Description Security Type Maturity
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 loan 02/2022 6.5 % $ 2,961 $ 2,961
Advanced Pain Management Holdings, Inc. (4)(5)
Healthcare, Education and Childcare Senior loan 12/2019 7.1 6,172 3,703
Advanced Pain Management Holdings, Inc. (4)(5)
Healthcare, Education and Childcare Senior loan 12/2019 7.1 422 253
Advanced Pain Management Holdings, Inc. (4)(5)(7)
Healthcare, Education and Childcare Senior loan 12/2019 7.1 193 (8)
Advanced Pain Management Holdings, Inc. (4)(5)
Healthcare, Education and Childcare Senior loan 12/2019 10.6 2,139 4
Boot Barn, Inc. (4)
Retail Stores Senior loan 06/2023 6.6 6,022 6,022
Brandmuscle, Inc. Printing and Publishing Senior loan 12/2021 6.9 4,418 4,415
Brandmuscle, Inc. Printing and Publishing Senior loan 12/2021
N/A (6)
— —
Captain D's, LLC (4)
Personal, Food and Miscellaneous Services Senior loan 12/2023 6.5 2,433 2,433
Captain D's, LLC (4)
Personal, Food and Miscellaneous Services Senior loan 12/2023 7.5 17 17
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan 12/2020 7.4 8,415 8,415
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan 12/2020 7.4 4,239 4,239
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 7.5 2,392 2,392
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 7.5 1,203 1,203
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 7.5 58 58
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 7.5 40 40
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021
N/A (6)
— —
DISA Holdings Acquisition Subsidiary Corp. (4)
Diversified/Conglomerate Service Senior loan 06/2022 7.1 4,773 4,773
DISA Holdings Acquisition Subsidiary Corp. (4)
Diversified/Conglomerate Service Senior loan 06/2022 6.0 53 53
Flexan, LLC Chemicals, Plastics and Rubber Senior loan 02/2020 7.9 5,905 5,905
Flexan, LLC Chemicals, Plastics and Rubber Senior loan 02/2020 7.9 1,640 1,640
Flexan, LLC (4)
Chemicals, Plastics and Rubber Senior loan 02/2020 9.5 431 431
Gamma Technologies, LLC (4)
Electronics Senior loan 06/2024 7.3 10,084 10,084
III US Holdings, LLC Diversified/Conglomerate Service Senior loan 09/2022 8.1 4,288 4,288
Jensen Hughes, Inc. Buildings and Real Estate Senior loan 03/2024 6.6 2,276 2,276
Jensen Hughes, Inc. Buildings and Real Estate Senior loan 03/2024 6.6 118 118
Jensen Hughes, Inc. Buildings and Real Estate Senior loan 03/2024 6.6 63 63
Joerns Healthcare, LLC (4)
Healthcare, Education and Childcare Senior loan 08/2024 8.2 1,286 1,286
Joerns Healthcare, LLC (4)
Healthcare, Education and Childcare Senior loan 08/2024 8.2 1,338 1,338
Mediaocean LLC Diversified/Conglomerate Service Senior loan 08/2020
N/A (6)
— —
Paradigm DKD Group, LLC (4)(5)
Buildings and Real Estate Senior loan 05/2022 8.4 1,480 1,094
Paradigm DKD Group, LLC (4)(5)(7)
Buildings and Real Estate Senior loan 05/2022 8.4 (16) (59)
Pasternack Enterprises, Inc. and Fairview Microwave, Inc (4)
Diversified/Conglomerate Manufacturing Senior loan 07/2025 6.0 5,264 5,264
Polk Acquisition Corp. (4)
Automobile Senior loan 06/2022 7.3 4,465 4,376
Polk Acquisition Corp. (4)
Automobile Senior loan 06/2022 7.3 60 58
Polk Acquisition Corp. Automobile Senior loan 06/2022 7.3 52 51
Pyramid Healthcare, Inc. (4)
Healthcare, Education and Childcare Senior loan 08/2020 8.8 10,047 10,047
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan 08/2020 9.2 257 257
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan 08/2020 8.8 147 147
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan 08/2020 8.8 99 99
RSC Acquisition, Inc. (4)
Insurance Senior loan 11/2022 6.4 3,785 3,785
RSC Acquisition, Inc. (4)
Insurance Senior loan 11/2021
N/A (6)
— —
Rubio's Restaurants, Inc (4)
Beverage, Food and Tobacco Senior loan 10/2019 9.1 4,890 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 Company Business Description Security Type Maturity
Date
Current
Interest
Rate (1)
Principal ($) /
Shares (2)
Fair
Value (3)
Sage Dental Management, LLC Healthcare, Education and Childcare Senior loan 12/2020 7.35 cash/1.00 PIK % $ 4,341 $ 3,907
Sage Dental Management, LLC Healthcare, Education and Childcare Senior loan 12/2020 8.4 70 62
Sage Dental Management, LLC Healthcare, Education and Childcare Senior loan 12/2020 8.4 63 57
Sage Dental Management, LLC Healthcare, Education and Childcare Senior loan 12/2020 8.4 45 40
SEI, Inc. (4)
Electronics Senior loan 07/2023 6.8 11,004 11,004
SEI, Inc. Electronics Senior loan 07/2023
N/A (6)
— —
Self Esteem Brands, LLC (4)
Leisure, Amusement, Motion Pictures, Entertainment Senior loan 02/2022 6.3 9,561 9,561
Self Esteem Brands, LLC (4)
Leisure, Amusement, Motion Pictures, Entertainment Senior loan 02/2022 8.3 415 415
Teasdale Quality Foods, Inc. Grocery Senior loan 10/2020 7.9 4,190 3,771
Teasdale Quality Foods, Inc. Grocery Senior loan 10/2020 7.9 3,285 2,956
Teasdale Quality Foods, Inc. Grocery Senior loan 10/2020 7.9 567 511
Teasdale Quality Foods, Inc. (4)
Grocery Senior loan 10/2020 7.9 424 382
Teasdale Quality Foods, Inc. Grocery Senior loan 10/2020 7.9 210 189
Upstream Intermediate, LLC Healthcare, Education and Childcare Senior loan 01/2024 6.0 2,796 2,796
WHCG Management, LLC (4)
Healthcare, Education and Childcare Senior loan 03/2023 8.1 7,820 7,820
WIRB-Copernicus Group, Inc. (4)
Healthcare, Education and Childcare Senior loan 08/2022 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 Gas LLC units N/A N/A 3 1,526
W3 Co. (8)(9)
Oil and Gas Preferred stock N/A N/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. Prior to the Purchase Agreement, for the three months ended December 31, 2019, the Company did not earn dividend income from the LLC equity interests in SLF. For the three and six months ended March 31, 2019, the Company did not earn 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 six months ended March 31, 2019:
As of September 30, 2019
Selected Balance Sheet Information:
Investments, at fair value $ 152,259
Cash and other assets 8,759
Total assets $ 161,018
Senior credit facility $ 75,581
Other liabilities 424
Total liabilities 76,005
Members’ equity 85,013
Total liabilities and members' equity $ 161,018

Three months ended December 31, Three months ended March 31, Six months ended March 31,
2019 2019 2019
Selected Statement of Operations Information:
Interest income $ 2,800 $ 3,538 $ 7,174
Fee income — — 9
Total investment income 2,800 3,538 7,183
Interest and other debt financing expense 634 1,133 2,320
Administrative service fee 61 64 144
Other expenses (15) 25 49
Total expenses 680 1,222 2,513
Net investment income 2,120 2,316 4,670
Net realized gain (loss) on investments — — (1,314)
Net change in unrealized appreciation (depreciation) on investments (1,603) (1,086) (2,004)
Net increase (decrease) in members' equity $ 517 $ 1,230 $ 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
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

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 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 SLF 28
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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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

GCIC SLF Investment Portfolio as of September 30, 2019
Portfolio Company Business Description Security Type Maturity
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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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

GCIC SLF Investment Portfolio as of September 30, 2019
Portfolio Company Business Description Security Type Maturity
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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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 assets 4,627
Total assets $ 116,195
Senior credit facility $ 59,559
Other liabilities 341
Total liabilities 59,900
Members’ equity 56,295
Total liabilities and members' equity $ 116,195
Three months ended December 31, 2019
Selected Statement of Operations Information:
Interest income $ 2,081
Total investment income 2,081
Interest and other debt financing expenses 512
Administrative service fee 45
Other expenses (24)
Total expenses 533
Net investment income 1,548
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 March 31, 2020 and September 30, 2019 were as follows:
As of March 31, 2020
Counterparty Currency to be sold Currency to be purchased Settlement date Unrealized appreciation ($) Unrealized depreciation ($)
Macquarie Bank Limited £ 8,925 GBP $ 11,219 USD 3/2/2023 $ 97 $ —
Macquarie Bank Limited £ 3,780 GBP $ 4,804 USD 3/27/2023 93 —
Macquarie Bank Limited € 6,760 EUR $ 8,044 USD 4/28/2023 386 —
Macquarie Bank Limited € 9,300 EUR $ 10,861 USD 4/29/2022 355 —
$ 931 $ —

As of September 30, 2019
Counterparty Currency to be sold Currency to be purchased Settlement date Unrealized appreciation ($) Unrealized depreciation ($)
Macquarie Bank Limited £ 8,925 GBP $ 11,219 USD 3/2/2023 $ — $ (114)
Macquarie Bank Limited £ 3,780 GBP $ 4,804 USD 3/27/2023 — (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 March 31, 2020 and September 30, 2019.
As of March 31, 2020
Counterparty Risk exposure category Unrealized 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 Limited Foreign exchange $ 931 $ — $ 931 $ — $ 931
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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
Counterparty Risk exposure category Unrealized 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 Limited Foreign 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 six months ended March 31, 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 category For the three months ended March 31, 2020 For the six months ended March 31, 2020
Foreign exchange $ — $ —
Change in unrealized appreciation (depreciation) on forward currency contracts recognized in income
Risk exposure category For the three months ended March 31, 2020 For the six months ended March 31, 2020
Foreign exchange $ 2,296 $ 1,046

The following table is a summary of the average outstanding daily volume for forward currency contracts for the three and six months ended March 31, 2020:
Average U.S. Dollar notional outstanding For the three months ended March 31, 2020 For the six months ended March 31, 2020
Forward currency contracts $ 34,928 $ 32,449

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 six months ended March 31, 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 March 31, 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 March 31, 2020 and September 30, 2019:
As of March 31, 2020 Fair Value Measurements Using
Description Level 1 Level 2 Level 3 Total
Assets, at fair value:
Debt investments (1)
$ — $ — $ 4,138,104 $ 4,138,104
Equity investments (1)
— — 72,111 72,111
Money market funds (1)(2)
15,726 — — 15,726
Forward currency contracts — 931 — 931
Total assets, at fair value: $ 15,726 $ 931 $ 4,210,215 $ 4,226,872

As of September 30, 2019 Fair Value Measurements Using
Description Level 1 Level 2 Level 3 Total
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 six months ended March 31, 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 March 31, 2020 was $(271,617) and $(261,076), respectively. The net change in unrealized appreciation (depreciation) for the three and six months ended March 31, 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 March 31, 2019 was $806 and $2,308, 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 six months ended March 31, 2020 and 2019:

For the six months ended March 31, 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 (226,168) (16,622) (242,790)
Realized gain (loss) on investments (7,069) 1,922 (5,147)
Funding of (proceeds from) revolving loans, net 31,054 — 31,054
Fundings of investments 493,587 5,254 498,841
PIK interest 4,648 — 4,648
Proceeds from principal payments and sales of portfolio investments (433,041) (7,811) (440,852)
Accretion of discounts and amortization of premiums (15,896) — (15,896)
Transfers in (1)
207,691 3,378 211,069
Fair value, end of period $ 4,138,104 $ 72,111 $ 4,210,215

For the six months ended March 31, 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 (4,384) 3,306 (1,078)
Realized gain (loss) on investments (2,647) (1,153) (3,800)
Funding of (proceeds from) revolving loans, net 4,051 — 4,051
Fundings of investments 303,880 5,305 309,185
PIK interest 851 — 851
Proceeds from principal payments and sales of portfolio investments (138,501) (3,124) (141,625)
Accretion of discounts and amortization of premiums 3,930 — 3,930
Fair value, end of period $ 1,838,231 $ 45,040 $ 1,883,271


(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 March 31, 2020 and September 30, 2019.

Quantitative information about Level 3 Fair Value Measurements
Fair value as of March 31, 2020 Valuation Techniques Unobservable Input
Range (Weighted Average) (1)
Assets:
Senior secured loans (2)
$ 623,688 Market rate approach Market interest rate 4.5% - 18.0% (7.6%)
Market comparable companies EBITDA multiples 5.5x - 20.0x (11.0x)
5,562 Market comparable Broker/dealer bids or quotes N/A
One stop loans (3)(4)
$ 3,422,341 Market rate approach Market interest rate 2.8% - 27.3% (8.7%)
Market comparable companies EBITDA multiples 4.5x - 27.2x (12.8x)
Revenue multiples 1.5x - 10.0x (5.8x)
Subordinated debt and second lien loans (5)
$ 20,325 Market rate approach Market interest rate 4.0% - 12.0% (11.1%)
Market comparable companies EBITDA multiples 8.5x - 16.0x (12.7x)
Revenue multiples 4.0x (4.0x)
Equity (6)
$ 72,111 Market comparable companies EBITDA multiples 4.5x - 27.2x (12.7x)
Revenue multiples 1.5x - 8.0x (3.7x)

(1) Unobservable inputs were weighted by the relative fair value of the instruments.
(2) Excludes $17,747 of non-accrual loans at fair value, which the Company valued using the market comparable companies approach.
(3) Excludes $48,441 of non-accrual loans at fair value, which the Company valued using the market comparable companies approach.
(4) The Company valued $3,008,679 and $413,662 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 $20,173 and $152 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 $61,728 and $10,383 of equity investments using EBITDA and revenue multiples, 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)

Quantitative information about Level 3 Fair Value Measurements
Fair value as of September 30, 2019 Valuation Techniques Unobservable Input
Range
(Weighted Average) (1)
Assets:
Senior secured loans (2)
$ 573,582 Market rate approach Market interest rate 4.3% - 11.3% (6.7%)
Market comparable companies EBITDA multiples 7.0x - 24.0x (12.9x)
9,901 Market comparable Broker/dealer bids or quotes N/A
One stop loans (3)(4)
$ 3,466,310 Market rate approach Market interest rate 5.3% - 30.8% (8.2%)
Market comparable companies EBITDA multiples 5.0x - 28.5x (14.3x)
Revenue multiples 2.0x - 11.0x (5.9x)
Subordinated debt and second lien loans (5)
$ 19,842 Market rate approach Market interest rate 7.5% - 19.5% (11.1%)
Market comparable companies EBITDA multiples 8.5x - 17.5x (13.3x)
Revenue multiples 3.0x - 3.0x (3.0x)
Equity (6)(7)
$ 85,990 Market comparable companies EBITDA multiples 5.0x - 28.5x (14.1x)
Revenue multiples 2.0x - 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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Golub Capital BDC, Inc. and Subsidiaries
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 March 31, 2020 and September 30, 2019.
As of March 31, 2020 As of September 30, 2019
Carrying Value Fair Value Carrying Value Fair Value
Debt $ 2,362,678 $ 2,327,418 $ 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 March 31, 2020, the Company’s asset coverage for borrowed amounts was 193.7% (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 March 31, 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 six months ended March 31, 2020, the Company had repayments on the 2014 Notes of $17,341 and $23,887, respectively. For the three and six months ended March 31, 2019, the Company had repayments on the 2014 Notes of $9,561 and $18,040, respectively. The 2014 Notes are scheduled to mature on April 25, 2026.
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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 March 31, 2020 and September 30, 2019, there were 60 and 68 portfolio companies with a total fair value of $222,999 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 March 31, 2020 based on the last interest rate reset was 1.8%. For the three and six months ended March 31, 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 March 31, For the six months ended March 31,
2020 2019 2020 2019
Stated interest expense $ 797 $ 1,697 $ 1,763 $ 3,398
Amortization of debt issuance costs — — — 110
Total interest and other debt financing expenses $ 797 $ 1,697 $ 1,763 $ 3,508
Cash paid for interest expense $ 945 $ 1,702 $ 2,027 $ 3,400
Annualized average stated interest rate 3.0 % 3.8 % 3.1 % 3.7 %
Average outstanding balance $ 107,402 $ 181,992 $ 114,487 $ 186,655

As of March 31, 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:
Description Class A-1-R 2014 Notes Class A-2-R 2014 Notes Class B-R 2014 Notes
Type Senior Secured Floating Rate Senior Secured Floating Rate Senior Secured Floating Rate
Amount Outstanding $61,054 $6,393 $35,000
Moody’s Rating "Aaa" "Aaa" "Aa1"
S&P Rating "AAA" "AAA" "AA+"
Interest Rate LIBOR + 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 March 31, 2020 and September 30, 2019 Consolidated Statements of Financial Condition as debt of the Company. As of March 31, 2020 and September 30, 2019, the Class C-2, Class D and Subordinated 2018 Notes were eliminated in consolidation.

As of March 31, 2020 and September 30, 2019, there were 93 and 101 portfolio companies, respectively, with a total fair value of $562,417 and $592,462, respectively, securing the 2018 Notes. The pool of loans in the 2018 Debt
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Golub Capital BDC, Inc. and Subsidiaries
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 March 31, 2020 based on the last interest rate reset was 1.8%. For the three and six months ended March 31, 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 March 31, For the six months ended March 31,
2020 2019 2020 2019
Stated interest expense $ 3,600 $ 4,353 $ 7,430 $ 6,578
Amortization of debt issuance costs 105 104 211 157
Total interest and other debt financing expenses $ 3,705 $ 4,457 $ 7,641 $ 6,735
Cash paid for interest expense $ 3,759 $ — $ 7,799 $ —
Annualized average stated interest rate 3.5 % 4.3 % 3.6 % 4.3 %
Average outstanding balance $ 408,200 $ 408,200 $ 408,200 $ 305,028

As of March 31, 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:
Description Class A 2018 Notes Class B 2018 Notes Class C-1 2018 Notes
Type Senior Secured Floating Rate Senior Secured Floating Rate Senior Secured Floating Rate
Amount Outstanding $327,000 $61,200 $20,000
Fitch Rating "AAA" "NR" "NR"
S&P Rating "AAA" "AA" "A"
Interest Rate LIBOR + 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 March 31, 2020 and September 30, 2019 Consolidated Statement of Financial Condition as debt of the Company. As of March 31, 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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Golub Capital BDC, Inc. and Subsidiaries
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 March 31, 2020 and September 30, 2019, there were 109 and 115 portfolio companies, respectively, with a total fair value of $846,389 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 March 31, 2020 based on the last interest rate reset was 1.8%. For the three and six months ended March 31, 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 March 31, For the six months ended March 31,
2020 2019 2020 2019
Stated interest expense $ 5,102 $ — $ 10,280 $ —
Amortization of debt issuance costs — — — —
Total interest and other debt financing expenses $ 5,102 $ — $ 10,280 $ —
Cash paid for interest expense $ 5,224 $ — 10,267 —
Annualized average stated interest rate 3.8 % N/A 3.8 % N/A
Average outstanding balance $ 546,500 $ — $ 546,500 $ —

As of March 31, 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:
Description Class A-1 GCIC 2018 Notes Class A-2 GCIC 2018 Notes Class B-1 GCIC 2018 Notes
Type Senior Secured Floating Rate Senior Secured Fixed Rate Senior Secured Floating Rate
Amount Outstanding $490,000 $38,500 $18,000
Fitch’s Rating "AAA" "NR" "NR"
S&P Rating "AAA" "AAA" "AA"
Interest Rate LIBOR + 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 March 31, 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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Golub Capital BDC, Inc. and Subsidiaries
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 March 31, 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 September 2021 and September 2029. The original amount of debentures committed to SBIC IV and SBIC V by the SBA were $150,000 and $175,000, respectively. Through March 31, 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 March 31, 2020 and September 30, 2019, SBIC VI had $29,000 and $18,000, respectively, of undrawn debenture commitments, of which $0 and $18,000, respectively, were available to be drawn, subject to SBA regulatory requirements.

The interest rate on the outstanding debentures as of March 31, 2020 is fixed at an average annualized interest rate of 3.1%. For the three and six months ended March 31, 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 March 31, For the six months ended March 31,
2020 2019 2020 2019
Stated interest expense $ 2,375 $ 2,384 $ 4,818 $ 4,747
Amortization of debt issuance costs 310 214 590 432
Total interest and other debt financing expenses $ 2,685 $ 2,598 $ 5,408 $ 5,179
Cash paid for interest expense $ 4,826 $ 4,711 $ 4,826 $ 4,711
Annualized average stated interest rate 3.2 % 3.4 % 3.2 % 3.4 %
Average outstanding balance $ 302,098 $ 286,156 $ 301,983 $ 281,780

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 March 31, 2020 and September 30, 2019, the Company had no outstanding debt under the Credit Facility. For the three and six months ended March 31, 2020, the Company had borrowings on the Credit Facility of $0 and $0, respectively, and repayments on the Credit Facility of $0 and $0, respectively. For the three and six months ended March 31, 2019, the Company had borrowings on the Credit Facility of $47,700 and $274,522, respectively, and repayments on the Credit Facility of $144,954 and $410,547, 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)

For the three and six months ended March 31, 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 March 31, For the six months ended March 31,
2020 2019 2020 2019
Stated interest expense $ — $ 479 $ — $ 1,455
Facility fees — 4 — 189
Amortization of debt issuance costs — 58 — 156
Total interest and other debt financing expenses $ — $ 541 $ — $ 1,800
Cash paid for interest expense and facility fees $ — $ 784 $ — $ 2,033
Annualized average stated interest rate N/A 4.7 % N/A 4.5 %
Average outstanding balance $ — $ 41,702 $ — $ 64,194

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 March 31, 2020 and September 30, 2019, the Company had no outstanding debt under the MS Credit Facility. For the three and six months ended March 31, 2020, the Company had borrowings on the MS Credit Facility of $0 and $0, respectively, and repayments on the MS Credit Facility of $0 and $0, respectively. For the three and six months ended March 31, 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.

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

For the three and six months ended March 31, 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 March 31, For the six months ended March 31,
2020 2019 2020 2019
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 rate N/A N/A N/A 4.2 %
Average outstanding balance $ — $ — $ — $ 68,576

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 changes the date under which the borrowing capacity reverts from $500,000 to $200,000 to June 30, 2020 from March 31, 2020. As of March 31, 2020, the MS Credit Facility II allows Funding II to borrow up to $500,000 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. During the revolving period, borrowings under the MS Credit Facility II bear interest at the applicable base rate plus 2.05%. 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 2.55% 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 March 31, 2020 and September 30, 2019, the Company had outstanding debt under the MS Credit Facility II of $408,452 and $259,946, respectively. For the three and six months ended March 31, 2020, the Company had borrowings on the MS Credit Facility II of $72,143 and $203,543, respectively, and repayments on the MS Credit Facility II of $47,331 and $54,531, respectively. For the three and six months ended March 31, 2019, the Company had borrowings on the MS Credit Facility II of $231,263 and $231,263, respectively, and repayments on the MS Credit Facility II of $54,650 and $54,650, 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)

For the three and six months ended March 31, 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 March 31, For the six months ended March 31,
2020 2019 2020 2019
Stated interest expense $ 3,420 $ 1,188 $ 6,735 $ 1,188
Facility fees 90 26 262 26
Amortization of debt issuance costs 318 91 503 91
Total interest and other debt financing expenses $ 3,828 $ 1,305 $ 7,500 $ 1,305
Cash paid for interest expense and facility fees $ 3,543 $ — $ 5,704 $ —
Annualized average stated interest rate 3.4 % 4.5 % 3.6 % 4.5 %
Average outstanding balance $ 398,793 $ 107,022 $ 371,123 $ 52,923

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 March 31, 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 March 31, 2020 and September 30, 2019, the Company had outstanding debt under the WF Credit Facility of $278,954 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 six months ended March 31, 2020, the Company had borrowings on the WF Credit Facility of $159,650 and $266,981, respectively, and repayments on the WF Credit Facility of $154,000 and $241,700, respectively. For the three and six months ended March 31, 2019, the Company had borrowings on the WF Credit Facility of $0 and $0, respectively, and repayments on the WF Credit Facility of $0 and $0, 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)

For the three and six months ended March 31, 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 March 31, For the six months ended March 31,
2020 2019 2020 2019
Stated interest expense $ 1,940 $ — 4,321 $ —
Facility fees 96 162 —
Amortization of debt issuance costs — — — —
Total interest and other debt financing expenses $ 2,036 $ — $ 4,483 $ —
Cash paid for interest expense $ 2,207 $ — $ 4,585 $ —
Annualized average stated interest rate 3.4 % N/A 3.6 % N/A
Average outstanding balance $ 229,150 $ — $ 238,698 $ —

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 March 31, 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 March 31, 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 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 March 31, 2020 and September 30, 2019, the Company had outstanding debt under the DB Credit Facility of $246,997 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 six months ended March 31, 2020, the Company had borrowings on the DB Credit Facility of $50,200 and $68,200, respectively, and repayments on the DB Credit Facility of $34,300 and $69,300, respectively. For the three and six months ended March 31, 2019, the Company had borrowings on the DB Credit Facility of $0 and $0, respectively, and repayments on the DB Credit Facility of $0 and $0, 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)

For the three and six months ended March 31, 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 March 31, For the six months ended March 31,
2020 2019 2020 2019
Stated interest expense $ 1,915 $ — $ 4,444 $ —
Facility fees 173 173 —
Total interest and other debt financing expenses $ 2,088 $ — $ 4,617 $ —
Cash paid for interest expense $ 2,156 $ — $ 4,918 —
Annualized average stated interest rate 3.4 % N/A 3.8 % N/A
Average outstanding balance $ 226,221 $ — $ 236,089 $ —

Effective January 1, 2020, the Company assumed, as a result of the Purchase Agreement, SLF Credit Facility. The reinvestment period of the SLF Credit Facility ended August 29, 2018 and as of March 31, 2020, the maximum commitment is equal to advances outstanding due to leverage and borrowing base restrictions. The stated maturity date of the SLF Credit Facility is August 30, 2022.

The SLF Credit Facility bears an interest at one-month LIBOR plus 2.05%, depending on the composition of the collateral asset portfolio, per annum.

The SLF Credit Facility is collateralized by all of the assets held by SLF II, and SLF has committed to provide a minimum of $12,500 of unencumbered liquidity. SLF has made customary representations and warranties and is required to comply with various covenants and reporting requirements.

The outstanding balance under the SLF II Credit Facility as of March 31, 2020 was $29,543. For the three and six months ended March 31, 2020, SLF II had borrowings on the SLF Senior Credit Facility of $0 and $0, respectively, and SLF II had repayments on the SLF Senior Credit Facility totaling $22,709 and $22,709, respectively.

For the three and six months ended March 31, 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 March 31, For the six months ended March 31,
2020 2019 2020 2019
Stated interest expense $ 286 $ — $ 286 $ —
Total interest and other debt financing expenses $ 286 $ — $ 286 $ —
Cash paid for interest expense $ 226 $ — $ 226 —
Annualized average stated interest rate 3.5 % — % 3.5 % —
Average outstanding balance $ 32,448 $ — $ 16,136 $ —

Effective January 1, 2020, the Company assumed, as a result of the Purchase Agreement, the GCIC SLF Credit Facility. The expiration of the reinvestment period of the GCIC SLF Credit Facility occurred on September 27, 2018, and as of March 31, 2020, the maximum commitment is equal to advances outstanding due to leverage and borrowing base restrictions. The stated maturity date of the GCIC SLF Credit Facility is September 28, 2022.

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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 GCIC SLF Credit Facility bears interest at one-month LIBOR plus 2.05% per annum, depending on the composition of the collateral asset portfolio. The GCIC SLF Credit Facility is collateralized by all of the assets held by GCIC SLF II, and GCIC SLF has committed to provide a minimum of $7,500 of unencumbered liquidity. GCIC SLF has made customary representations and warranties and is required to comply with various covenants and reporting requirements.

The outstanding balance under the GCIC SLF Credit Facility as of March 31, 2020 was $31,655. For the three and six months ended March 31, 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 $12,761 and $12,761, respectively.

For the three and six months ended March 31, 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 March 31, For the six months ended March 31,
2020 2019 2020 2019
Stated interest expense $ 295 $ — $ 295 $ —
Total interest and other debt financing expenses $ 295 $ — $ 295 $ —
Cash paid for interest expense $ 237 $ — $ 237 —
Annualized average stated interest rate 3.5 % N/A 3.5 % N/A
Average outstanding balance $ 33,571 $ — $ 16,694 $ —

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 1.5% as of March 31, 2020. As of March 31, 2020, the Company had $27,500 of outstanding debt under the Adviser Revolver. As of September 30, 2019, the Company had no outstanding debt under the Adviser Revolver or the Adviser Revolver II. For the three and six months ended March 31, 2020, the Company had $65,000 and $122,500 in borrowings and $37,500 and $95,000 in repayments on the Adviser Revolver. For the three and six months ended March 31, 2019, the Company had no borrowings or repayments on the Adviser Revolver. For the three and six months ended March 31, 2020, the Company incurred $13 and $22 in interest expense and $0 and $18 in cash was paid for interest on the Adviser Revolver, respectively. For the three and six months ended March 31, 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 March 31, 2020 and September 30, 2019, the Company had no short-term borrowings. For the three and six months ended March 31, 2020, the annualized effective interest rate on short-term borrowings was 4.8% and 4.9%, respectively, and interest expense was $715 and $1,533, respectively. For the three and six months ended March 31, 2019, the annualized effective interest rate on short-term borrowings was 4.7% and 4.9%, respectively, and interest expense was $38 and $250, respectively. The net change in unrealized appreciation (depreciation) for the three and
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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

six months ended March 31, 2020, reported within the net change in unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies was $1,604, and $0, respectively. The net change in unrealized appreciation (depreciation) for the three and six months ended March 31, 2019, reported within the net change in unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies was $(32), and $0, respectively.

For the three and six months ended March 31, 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 $2,347,720 and $2,314,448, respectively. For the three and six months ended March 31, 2019, the average total debt outstanding (including the debt under the 2010 Debt Securitization, 2014 Debt Securitization, SBA debentures, Credit Facility, MS Credit Facility, MS Credit Facility II, Adviser Revolver, and Other Short-Term Borrowings) was $1,028,373 and $969,424, respectively.

For the three and six months ended March 31, 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 3.7% and 3.6%, respectively. For the three and six months ended March 31, 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 4.0% and 3.9%, respectively.

A summary of the Company’s maturity requirements for borrowings as of March 31, 2020 is as follows:
Payments Due by Period
Total Less Than
1 Year 		1 – 3 Years 3 – 5 Years More Than
5 Years
2014 Debt Securitization $ 102,447 $ — $ — $ — $ 102,447
2018 Debt Securitization 408,200 — — — 408,200
2018 GCIC Debt Securitization (1)
541,480 — — — 541,480
SBA Debentures 287,450 — 58,200 47,000 182,250
WF Credit Facility 278,954 — — 278,954 —
MS Credit Facility II 408,452 208,452 — 200,000 —
Adviser Revolver 27,500 — 27,500 — —
DB Credit Facility 246,997 — — 246,997 —
SLF Credit Facility 29,543 — 29,543 — —
GCIC SLF Credit Facility 31,655 — 31,655 — —
Total borrowings $ 2,362,678 $ 208,452 $ 146,898 $ 772,951 $ 1,234,377

(1) Includes $5,020 of discount recognized on the assumption of the 2018 GCIC Debt Securitization in the Merger.



Note 8. Commitments and Contingencies

Commitments: As of March 31, 2020, the Company had outstanding commitments to fund investments totaling $151,578, including $17,512 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
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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

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 March 31, 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 six months ended March 31,
Per share data: (1)
2020 2019
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
Distributions declared:
From net investment income (0.71) (0.63)
From capital gains (0.08) (0.13)
Net investment income 0.48 0.66
Net realized gain (loss) on investment transactions (0.07) (0.06)
Net change in unrealized appreciation (depreciation) on investment transactions (1.77)
0.00 **
Net asset value at end of period $ 14.62 $ 15.95
Per share market value at end of period $ 12.56 $ 17.88
Total return based on market value (3)
(29.80) % (0.25) %
Number of common shares outstanding 133,807,609 60,587,403

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

For the six months ended March 31,
Listed below are supplemental data and ratios to the financial highlights: 2020 2019
Ratio of net investment income to average net assets *
5.81 % 8.25 %
Ratio of total expenses to average net assets (4)*
7.57 % 8.03 %
Ratio of incentive fees to average net assets 0.44 % 0.52 %
Ratio of expenses (without incentive fees) to average net assets *
7.13 % 7.51 %
Total return based on average net asset value (5)*
(16.35) % 7.50 %
Net assets at end of period $ 1,955,988 $ 966,235
Average debt outstanding $ 2,314,448 $ 969,424
Average debt outstanding per share $ 17.30 $ 16.00
Portfolio turnover *
25.59 % 15.23 %
Asset coverage ratio (6)
193.69 % 224.96 %
Asset coverage ratio per unit (7)
$ 1,937 $ 2,250
Average market value per unit: (8)
2010 Debt Securitization N/A N/A
2014 Debt Securitization N/A N/A
2018 Debt Securitization N/A N/A
2018 GCIC Debt Securitization N/A N/A
SBA Debentures N/A N/A
GCIC Credit Facility N/A N/A
MS Credit Facility N/A N/A
MS Credit Facility II N/A N/A
Revolver N/A N/A
WF Credit Facility N/A N/A
DB Credit Facility N/A N/A
SLF Senior Credit Facility N/A N/A
GCIC Senior Credit Facility N/A N/A
Adviser Revolver N/A N/A
Adviser Revolver II N/A N/A

* Annualized for periods less than one year.
** Represents an amount less than $0.01 per share.
(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) Total return based on market value assumes distributions are reinvested in accordance with the DRIP. Total return does not include sales load.
(4) Expenses, other than incentive fees, are annualized for a period less than one year.
(5) 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.
(6) 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).
(7) 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.
(8) Not applicable because such senior securities are not registered for public trading.
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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 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 six months ended March 31, 2020 and 2019:
Three months ended March 31, Six months ended March 31,
2020 2019 2020 2019
Earnings (loss) available to stockholders $ (228,964) $ 17,788 $ (181,916) $ 36,227
Basic and diluted weighted average shares outstanding 133,807,609 60,429,580 133,242,326 60,301,709
Basic and diluted earnings per share $ (1.71) $ 0.29 $ (1.36) $ 0.60

In connection with the rights offering described in Note 12, the Company determined that certain of the closing conditions, including the Company’s ability to terminate the offering at any time prior to the delivery of the shares of the Company’s common stock, represented a substantive contingency that may impact the completion of the offering. As this contingency was not resolved as of May 11, 2020, in accordance with ASC 260 – Earnings per Share , basic and diluted earnings per share amounts in the accompanying interim consolidated financial statements were not adjusted retroactively to reflect the bonus element of the rights offering. Should the contingency be resolved and the offering be completed, the Company’s historical basic and diluted earnings per share amounts will be adjusted retrospectively to reflect the bonus element in any subsequent issuances of the Company’s consolidated financial statements.

Note 11. 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 six months ended March 31, 2020 and 2019:

Date Declared Record Date Payment Date Amount
Per Share 		Cash
Distribution 		DRIP Shares
Issued 		DRIP Shares
Value
Six months ended March 31, 2020
11/22/2019 12/12/2019 12/30/2019 $ 0.46
(1)
$ 40,793 1,149,409 $ 20,230
02/04/2020 03/06/2020 03/27/2020 $ 0.33 $ 30,123 — $ 14,034
(2)
Six months ended March 31, 2019
11/27/2018 12/12/2018 12/28/2018 $ 0.44
(3)
$ 22,339 256,785 $ 4,134
02/05/2019 03/07/2019 03/28/2019 $ 0.32 $ 16,507 165,164 $ 2,828


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




Note 12. 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 April 8, 2020, the Company issued transferable subscription rights to stockholders of record which allowed holders of the subscription rights to purchase up to an aggregate of 33,451,902 shares of the Company’s common stock. Stockholders received one right for each four outstanding shares of common stock owned on the record date
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Golub Capital BDC, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

of April 8, 2020. The rights offering expired on May 6, 2020, and the subscription price was determined to be $9.17 per share. The rights offering is subject to the closing conditions as specified in the amended prospectus supplement dated April 13, 2020, and, should the Company determine to proceed with the offering, the exact number of shares of common stock subscribed for will be determined on or around May 15, 2020.

On April 9, 2020, the Company's board of directors declared a quarterly distribution of $0.29 per share, which is payable on June 29, 2020 to holders of record as of June 9, 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.

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 results could differ materially from historical performance. You are advised to consult any additional disclosures
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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 March 31, 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 March 31, 2020 and September 30, 2019, our portfolio at fair value was comprised of the following:
As of March 31, 2020 As of September 30, 2019
Investment Type Investments at
Fair Value
(In thousands) 		Percentage of
Total
Investments 		Investments at
Fair Value
(In thousands) 		Percentage of
Total
Investments
Senior secured $ 646,997 15.4 % $ 589,340 13.7 %
One stop 3,470,782 82.4 3,474,116 80.9
Second lien 19,811 0.5 19,473 0.5
Subordinated debt 514 — * 369 — *
LLC equity interests in SLF and GCIC SLF (1)
— — 123,644 2.9
Equity 72,111 1.7 85,990 2.0
Total $ 4,210,215 100.0 % $ 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 March 31, 2020 and September 30, 2019, one stop loans included $413.7 million and $414.7 million, respectively, of late stage lending loans at fair value.

As of March 31, 2020 and September 30, 2019, we had debt and equity investments in 257 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 six months ended March 31, 2020 and 2019:
For the three months ended March 31, For the six months ended March 31,
2020 2019 2020 2019
Weighted average annualized income yield (1)
7.8% 8.8% 7.9% 8.7%
Weighted average annualized investment income yield (2)
8.2% 9.2% 8.3% 9.1%
Total return based on average net asset value (3)*
(31.2)% 7.5% (16.3)% 7.5%
Total return based on market value (4)
(30.1)% 10.5% (29.8)% (0.3)%


* 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.

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, 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.

We cannot predict the full impact of the coronavirus, including the duration of the closures and restrictions described above. 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.

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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 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 is segmenting our portfolio to highlight those borrowers with moderate or higher risk of material impacts to their business operations from COVID-19. By segmenting our portfolio we believe we can focus now on the borrowers which are more likely to require attention. We believe that early identification of vulnerable credits means more and better solutions to address potential problems. During the three months ended March 31, 2020, we amended the terms of fifteen credit agreements for fifteen borrowers to defer their March 31, 2020 principal payment and/or capitalize their March 31, 2020 interest payment.

As of March 31, 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 March 31, 2020, and December 31, 2019 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. 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 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 have completed an industry subsegment analysis as of March 31, 2020 to determine the exposure of our portfolio companies to adverse effects on their business operations as a result of the COVID-19 pandemic. As of March, 31, 2020, more than 75% 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 will 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 March 31, 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
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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 March 31, 2020 is as follows:

Industry Subsegments 1
Less exposed to COVID-19
(>75% of portfolio 2 )
Significantly exposed to COVID-19 exposure
(<20% of portfolio 2 )
Most significantly exposed to COVID-19
(<1% of portfolio 2 )
Software & Technology Restaurants Airlines & Aircraft Finance
Business Services Dental Care Boating & Marine
Healthcare 3
Eye Care Entertainment
Aerospace & Defense Fitness Franchises Gaming
Distribution Retail Hotels
Financial Services Metals & Mining
Food & Beverage Oil & Gas
Manufacturing Project Finance
Education Real Estate
Shipping

(1) Industry subsegments are based on GC Advisors' internal analysis and industry classifications as of March 31, 2020.
(2) At fair value as of March 31, 2020.
(3) Excludes Dental Care and Eye Care subsegments.


The table below details the impact of the effects of the COVID-19 pandemic on the weighted average price of our debt investments and the net change in unrealized depreciation on investments held as of March 31, 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 reductions in weighted average price of our debt investments by Internal Performance Rating category as of March 31, 2020 as compared to December 31, 2019.

Weighted Average Price 1
Category As of
December 31, 2019 		As of
March 31, 2020
Net Change in Unrealized Depreciation on Investments Held as of March 31, 2020 per Share (2)(3)
% of Net Change in Unrealized Depreciation on Investments Held as of March 31, 2020 (2)
Primary Driver
Internal Performance Ratings 4 and 5
(Performing At or Above Expectations)
$ 99.9 $ 96.2 $ (1.02) 49 % Spread widening
Internal Performance Rating 3
(Performing Below Expectations)
96.0 90.0 (0.86) 42 % Spread widening, COVID-19 exposure
Internal Performance Ratings 1 and 2
(Performing Materially Below Expectations)
74.3 65.1 (0.18) 9 % Pre-existing
credit challenges,
COVID-19 exposure
Total $ 99.1 $ 94.0 $ (2.06) 100 %

(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 March 31, 2020 includes the net change in unrealized depreciation for the three months ended March 31, 2020 attributable to investments held as of March 31, 2020.
(3) Based on weighted average shares outstanding for the three months ended March 31, 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.



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Recent Developments

On April 8, 2020, we issued transferable subscription rights to our stockholders of record, which allowed holders of the subscription rights to purchase up to an aggregate of 33,451,902 shares of our common stock. Stockholders received one right for each four outstanding shares of our common stock owned on the record date of April 8, 2020. The rights entitled the holders to purchase one new share of common stock for every right held. In addition, stockholders who fully exercised their rights were entitled to subscribe, subject to limitations, for additional shares of our common stock that remained unsubscribed as a result of any unexercised rights. The rights offering expired on May 6, 2020. The exact number of shares of common stock subscribed for will be determined on or around May 15, 2020 but in no event will we issue more than 33,451,902 shares pursuant to the subscriptions as set forth in the prospectus.

On April 9, 2020, our board of directors declared a quarterly distribution of $0.29 per share of common stock, which is payable on June 29, 2020 to stockholders of record as of June 9, 2020.

Subsequent to March 31, 2020, the COVID-19 pandemic and the related effect on the U.S. and global economies has continued to have 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 with respect to us). Given the dynamic nature of this situation, we cannot reasonably estimate the impacts of COVID-19 on our financial condition, results of operations or cash flows in the future. However, to the extent our portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on our future net investment income, the fair value of our portfolio investments, and the results of operations and financial condition of our portfolio companies.


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Consolidated Results of Operations

Consolidated operating results for the three and six months ended March 31, 2020 and 2019 are as follows:
For the three months ended March 31, Variances For the six months ended March 31, Variances
2020 2019 2020 vs. 2019 2020 2019 2020 vs. 2019
(In thousands) (In thousands)
Interest income $ 82,848 $ 39,684 $ 43,164 $ 167,170 $ 76,581 $ 90,589
Income from accretion of discounts and origination fees 4,573 1,977 2,596 8,541 3,930 4,611
GCIC acquisition purchase premium amortization (12,600) — (12,600) (24,437) — (24,437)
Dividend income from LLC equity interests in SLF and GCIC SLF (1)
— — — 1,905 — 1,905
Dividend income 146 19 127 180 58 122
Fee income 157 125 32 372 647 (275)
Total investment income 75,124 41,805 33,319 153,731 81,216 72,515
Total expenses 43,178 21,749 21,429 89,054 41,343 47,711
Net investment income (loss) 31,946 20,056 11,890 64,677 39,873 24,804
Net realized gain (loss) on investment transactions (9,360) (1,861) (7,499) (6,819) (3,839) (2,980)
Net realized gain (loss) on investment transactions due to purchase premium (2,310) — (2,310) (2,350) — (2,350)
Net change in unrealized appreciation (depreciation) on investment transactions excluding purchase premium
(264,150) (407) (263,743) (264,211) 193 (264,404)
Net change in unrealized depreciation on investment transactions due to purchase premium
14,910 — 14,910 26,787 — 26,787
Net gain (loss) on investment transactions (260,910) (2,268) (258,642) (246,593) (3,646) (242,947)
Net increase (decrease) in net assets resulting from operations $ (228,964) $ 17,788 $ (246,752) $ (181,916) $ 36,227 $ (218,143)
Average earning debt investments, at fair value (2)
$ 4,308,834 $ 1,842,007 $ 2,466,827 $ 4,234,014 $ 1,783,174 $ 2,450,840

(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 March 31, For the six months ended March 31,
2020 2019 2020 2019
(In thousands) (In thousands)
Net investment income $ 31,946 $ 20,056 $ 64,677 $ 39,873
Add: GCIC acquisition purchase premium amortization 12,600 — 24,437 —
Less: Accrual (reversal) for capital gain incentive fee — (669) — (1,147)
Adjusted net investment income $ 44,546 $ 19,387 $ 89,114 $ 38,726
Net gain (loss) on investment transactions $ (260,910) $ (2,268) $ (246,593) $ (3,646)
Add: Realized loss on investment transactions due to purchase premium 2,310 — 2,350 —
Less: Net change in unrealized appreciation on investment transactions due to purchase premium (14,910) — (26,787) —
Adjusted net realized and unrealized gain/(loss) $ (273,510) -273510 $ (2,268) $ (271,030) $ (3,646)
Net increase (decrease) in net assets resulting from operations $ (228,964) $ 17,788 $ (181,916) $ 36,227
Add: GCIC acquisition purchase premium amortization 12,600 — 24,437 —
Less: Accrual (reversal) for capital gain incentive fee — (669) — (1,147)
Add: Realized loss on investment transactions due to purchase premium 2,310 — 2,350 —
Less: Net change in unrealized appreciation on investment transactions due to purchase premium (14,910) — (26,787) —
Adjusted net income/(loss) $ (228,964) $ 17,119 $ (181,916) $ 35,080

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 March 31, 2019 to the three months ended March 31, 2020 by $33.3 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 $2.5 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 six months ended March 31, 2019 to the six months ended March 31, 2020 by $47.7 million primarily as a result of an increase in the average earning debt investments balance of $2.5 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 six months ended March 31, 2020 and 2019 was as follows:
For the three months ended March 31, For the six months ended March 31,
2020 2019 2020 2019
Senior secured 6.6% 7.5% 6.8% 7.4%
One stop 7.9% 8.9% 8.0% 8.8%
Second lien 11.3% 10.9% 11.3% 10.7%
Subordinated debt 16.9% 6.8% 13.8% 8.3%

Income yields on one stop and senior secured loans decreased for the three and six months ended March 31, 2020 as compared to the three and six months ended March 31, 2019, primarily due to a decrease in the average LIBOR.
As of March 31, 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 six months ended March 31, 2020 and 2019:
For the three months ended March 31, Variances For the six months ended March 31, Variance
2020 2019 2020 vs. 2019 2020 2019 2020 vs. 2019
(In thousands) (In thousands)
Interest and other debt financing expenses $ 20,817 $ 10,169 $ 10,648 $ 42,524 $ 19,284 $ 23,240
Amortization of debt issuance costs 733 467 266 1,304 1,136 168
Base management fee 14,858 6,594 8,264 30,064 13,033 17,031
Income incentive fee 3,847 3,735 112 9,751 6,196 3,555
Capital gain incentive fee — (669) 669 — (1,147) 1,147
Professional fees 1,045 666 379 1,984 1,254 730
Administrative service fee 1,446 663 783 2,848 1,362 1,486
General and administrative expenses 432 124 308 579 225 354
Total expenses $ 43,178 $ 21,749 $ 21,429 $ 89,054 $ 41,343 $ 47,711
Average debt outstanding $ 2,347,720 $ 1,028,373 $ 1,319,347 $ 2,314,448 $ 969,424 $ 1,345,024

Interest Expense

Interest and other debt financing expenses increased by $10.6 million from the three months ended March 31, 2019 to the three months ended March 31, 2020 primarily due to an increase in the weighted average of outstanding borrowings from $1.0 billion for the three months ended March 31, 2019 to $2.3 billion for the three months ended March 31, 2020. Interest and other debt financing expenses increased by $23.2 million from the six months ended March 31, 2019 to the six months ended March 31, 2020 primarily due to an increase in the weighted average of outstanding borrowings from $1.0 billion for the six months ended March 31, 2019 to $2.3 billion for six months ended March 31, 2020. For more information about our outstanding borrowings for six months ended March 31, 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 average interest rate on our outstanding debt decreased to 3.7% for the three months ended March 31, 2020 from 4.2% for the three months ended March 31, 2019 primarily due to a lower average LIBOR.

The effective average interest rate on our outstanding debt decreased to 3.8% for the six months ended March 31, 2020 from 4.2% for the six months ended March 31, 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 six months ended March 31, 2019 to the three and six months ended March 31, 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 increased by $0.1 million and $3.6 million, respectively, from the three and six months ended March 31, 2019 to the three and six months ended March 31, 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 lower rate of return on the value of our net assets primarily due to lower 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 March 31, 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 10.7% compared to 16.2% for the three months ended March 31, 2019. For the six months ended March 31, 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 13.1% compared to 13.8% for the six months ended March 31, 2019.

For each of the three and six months ended March 31, 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 six months ended March 31, 2020 was $0 and $0, respectively. The capital gain incentive fee accrual calculated in accordance with GAAP as of the three and six months ended March 31, 2019 was a reversal of $0.7 million, or $0.1 per share, and $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 March 31, 2019 to the three months ended March 31, 2020 and increased by$2.6 million from the six months ended March 31, 2019 to the six months ended March 31, 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 March 31, 2020 and 2019 were $1.6 million and $0.8 million, respectively. Total expenses reimbursed by us to the Administrator for the six months ended March 31, 2020 and 2019 were $3.3 million and $1.2 million, respectively.

As of March 31, 2020 and September 30, 2019, included in accounts payable and other liabilities were $0.9 million and $0.9 million, respectively, for expenses paid on behalf of us by the Administrator. As of September 30, 2019,
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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 March 31, Variances For the six months ended March 31, Variance
2020 2019 2020 vs. 2019 2020 2019 2020 vs. 2019
(In thousands) (In thousands)
Net realized gain (loss) on investments $ (11,839) $ (1,852) $ (9,987) $ (9,183) $ (3,800) $ (5,383)
Foreign currency transactions 169 (9) 178 14 (39) 53
Net realized gain (loss) on investment transactions
$ (11,670) $ (1,861) $ (9,809) $ (9,169) $ (3,839) $ (5,330)
Unrealized appreciation on investments 7,828 13,051 (5,223) 14,612 24,395 (9,783)
Unrealized (depreciation) on investments (267,026) (14,472) (252,554) (257,401) (25,473) (231,928)
Unrealized appreciation (depreciation) on investments in SLF and GCIC SLF (1)
4,036 1,077 2,959 3,843 1,183 2,660
Unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies
3,626 (63) 3,689 476 88 388
Unrealized appreciation (depreciation) on forward currency contracts
2,296 — 2,296 1,046 — 1,046
Net change in unrealized appreciation (depreciation) on investment transactions
$ (249,240) $ (407) $ (248,833) $ (237,424) $ 193 $ (237,617)

(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 six months ended March 31, 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. Unrealized appreciation for the three months ended March 31, 2020 represents a reversal of unrealized depreciation as a result of the realized loss resulting from the consolidation of SLF and GCIC SLF.
For the three months ended March 31, 2020, we had a net realized loss on investments and foreign currency transactions of $11.7 million primarily due to a $4.0 realized loss recognized as a result of the consolidation of SLF and GCIC SLF with the remaining net loss of $7.7 million primarily attributable to legal debt forgiveness on two loans that were restructured in March 2020. The $4.0 million realized loss that resulted from the consolidation of SLF and GCIC SLF was offset with a corresponding reversal of the unrealized depreciation on our investments in the LLC equity interests of SLF and GCIC SLF. For the six months ended March 31, 2020, we had a net realized loss of $9.2 million primarily attributable to the net realized losses incurred during the three months ended March 31, 2020, partially offset by net realized gains from the sale of equity investments in multiple portfolio companies.

For the three months ended March 31, 2019, we had a net realized loss on investments and foreign currency transactions of $1.9 million primarily due to sale of equity investments in multiple portfolio companies. For the six months ended March 31, 2019, we had a net realized loss on investments and foreign currency transactions of $3.8 million primarily due to the sale of equity investments in multiple portfolio companies.

For the three months ended March 31, 2020, we had $7.8 million in unrealized appreciation on 29 portfolio company investments, which was offset by $267.0 million in unrealized depreciation on 240 portfolio company investments. For the six months ended March 31, 2020, we had $14.6 million in unrealized appreciation on 35 portfolio company investments, which was offset by $257.4 million in unrealized depreciation on 236 portfolio company investments. Unrealized depreciation for the three and six months ended March 31, 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 .

For the three months ended March 31, 2019, we had $13.1 million in unrealized appreciation on 130 portfolio company investments, which was offset by $14.5 million in unrealized depreciation on 185 portfolio company investments. For the six months ended March 31, 2019, we had $24.4 million in unrealized appreciation on 167 portfolio company investments, which is offset by $25.5 million in unrealized depreciation on 182 portfolio company investments. Unrealized appreciation during the three and six months ended March 31, 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 several portfolio company equity
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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 six months ended March 31, 2019.
For the three months ended March 31, 2019, we had $1.1 million in unrealized appreciation on our investment in SLF LLC equity interests, which was primarily driven by net investment income associated with SLF's investment portfolio netted against net negative credit related adjustments at SLF. For the six months ended March 31, 2019, we had $1.2 million in unrealized appreciation on our investment in SLF LLC equity interests, which was primarily driven by net investment income associated with SLF's investment portfolio netted against net negative credit related adjustments at SLF. SLF did not pay a dividend to us for the three and six months ended March 31, 2019.

Liquidity and Capital Resources

For the six months ended March 31, 2020, we experienced a net increase in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies of $34.7 million. During the period, cash used in operating activities was $19.7 million, primarily as a result of fundings of portfolio investments of $498.8 million and fundings of revolving loans of $31.1 million, partially offset by the proceeds from principal payments and sales of portfolio investments of $445.2 million and net investment income of $64.7 million. Lastly, cash provided by financing activities was $54.4 million, primarily driven by borrowings on debt of $695.6 million and proceeds from short-term borrowings of $64.8 million which were partially offset by repayments of debt of $553.4 million, repayments on short-term borrowings of $65.0 million and distributions paid of $85.0 million.

For the six months ended March 31, 2019, we experienced a net increase in cash, cash equivalents, foreign currencies and restricted cash and cash equivalents of $30.5 million. During the period, cash used in operating activities was $133.1 million, primarily as a result of fundings of portfolio investments of $310.9 million, partially offset by the proceeds from principal payments and sales of portfolio investments of $143.9 million and net investment income of $39.9 million. Lastly, cash provided by financing activities was $163.6 million, primarily driven by borrowings on debt of $1.1 billion that were partially offset by repayments of debt of $865.0 million and distributions paid of $38.8 million.

As of March 31, 2020 and September 30, 2019, we had cash and cash equivalents of $23.7 million and $6.5 million, respectively. In addition, we had foreign currencies of $0.7 million and $0.1 million as of March 31, 2020 and September 30, 2019, respectively, restricted cash and cash equivalents of $92.7 million and $76.4 million as of March 31, 2020 and September 30, 2019, respectively, and restricted foreign currencies of $2.0 million and $1.3 million as of March 31, 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 March 31, 2020 and September 30, 2019, we had $408.5 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 March 31, 2020, the MS Credit Facility II allowed Golub Capital BDC Funding II LLC, or Funding II, to temporarily borrow up to $500.0 million at any one time outstanding, subject to leverage and borrowing base restrictions. On March 20, 2020, we entered into an amendment that changes the date under which the borrowing capacity reverts from $500.0 million to $200.0 million to June 30, 2020 from March 31, 2020. As of March 31, 2020 and September 30, 2019, subject to leverage and borrowing base restrictions, we had approximately $91.5 million and $40.1 million of remaining commitments, respectively, and $1.0 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
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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.

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 March 31, 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 March 31, 2020 and September 30, 2019, we had outstanding debt under the WF Credit Facility of $279.0 million and $253.8 million, respectively. As of March 31, 2020 and September 30, 2019, subject to leverage and borrowing base restrictions, we had approximately $21.0 million and $46.2 million of remaining commitments, respectively, and $1.2 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 March 31, 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 March 31, 2020 and September 30, 2019, we had outstanding debt under the DB Credit Facility of $247.0 million and $248.0 million, respectively. As of March 31, 2020 and September 30, 2019, subject to leverage and borrowing base restrictions, we had approximately $3.0 million and $2.0 million of remaining commitments, respectively, and $0.1 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) which, as of March 31, 2020, allowed Senior Loan Fund II, or SLF II, to borrow up to $29.5 million, which was equal to advances outstanding as the reinvestment period of the SLF Credit Facility ended August 29, 2018.

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), which, as of March 31, 2020, allowed GCIC Senior Loan Fund II, or GCIC SLF II, to borrow up to $31.7 million, which was equal to advances outstanding as the reinvestment period of the GCIC SLF Credit Facility ended September 29, 2018.

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 March 31, 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 March 31, 2020 and September 30, 2019, we had $27.5 million and $0 outstanding on the Adviser Revolver, respectively.

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.

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The Class A-1-R, Class A-2-R and Class B-R 2014 Notes are included in the March 31, 2020 and September 30, 2019 Consolidated Statements of Financial Condition as our debt and the Class C-R 2014 Notes and LLC equity interests in the 2014 Issuer were eliminated in consolidation. As of March 31, 2020 and September 30, 2019, we had outstanding debt under the 2014 Debt Securitization of $102.4 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 March 31, 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 March 31, 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 March 31, 2020 and September 30, 2019 Consolidated Statements of Financial Condition as our debt. As of March 31, 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 March 31, 2020 and September 30, 2019, we had outstanding debt under the GCIC 2018 Debt Securitization of $541.5 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 March 31, 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 March 31, 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 March 31, 2020 and September 30, 2019, SBIC VI had $29.0 million and $18.0 million, respectively, of undrawn debenture commitments, of which $0 and $18.0 million, respectively, were available to be drawn, subject to SBA regulatory requirements.

In August 2019, 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 six months ended March 31, 2020 and 2019.

As of March 31, 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
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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 March 31, 2020, our asset coverage for borrowed amounts was 193.7% (excluding the SBA debentures).

As of March 31, 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 $151.6 million and $261.6 million, respectively. As of March 31, 2020, total commitments of $151.6 million included $17.5 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 March 31, 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.

We expect the exact number of shares of common stock subscribed for in the rights offering that expired on May 6, 2020, will be determined on or around May 15, 2020 but in no event will we issue more than 33,451,902 shares pursuant to the subscriptions as set forth in the prospectus.

Portfolio Composition, Investment Activity and Yield

As of March 31, 2020 and September 30, 2019, we had investments in 257 and 241 portfolio companies, respectively, with a total fair value of $4.2 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 the three and six months ended March 31, 2020 and 2019:

For the three months ended March 31, For the six months ended March 31,
2020 2019 2020 2019
(In thousands) Percentage of
Commitments 		(In thousands) Percentage of
Commitments 		(In thousands) Percentage of
Commitments 		(In thousands) Percentage of
Commitments
Senior secured $ 55,848 33.4 % $ 9,962 8.6% $ 67,458 15.4% $ 50,918 16.0%
One stop 108,886 65.2 104,169 89.7 366,215 83.6 261,186 81.8
Subordinated debt — — 23 0.0* 138 0.0* 23 0.0*
LLC equity interests in SLF (1)
— — 1,750 1.5 — — 1,750 0.5
Equity 2,291 1.4 207 0.2 4,306 1.0 5,305 1.7
Total new investment commitments $ 167,025 100.0 % $ 116,111 100.0 % $ 438,117 100.0 % $ 319,182 100.0 %

* 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. As of March 31, 2019, SLF had investments in senior secured loans to 30 different borrowers.

For the three and six months ended March 31, 2020, we had approximately $290.9 million and $445.2 million, respectively, in proceeds from principal payments and sales of portfolio investments.

For the three and six months ended March 31, 2019, we had approximately $80.3 million and $143.9 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 March 31, 2020 (1)
As of September 30, 2019 (2)
Principal Amortized
Cost 		Fair
Value 		Principal Amortized
Cost 		Fair
Value
(In thousands) (In thousands)
Senior secured:
Performing $ 675,248 $ 680,661 $ 629,250 $ 586,039 $ 597,033 $ 583,483
Non-accrual (3)
45,385 32,108 17,747 15,749 8,573 5,857
One stop:
Performing 3,629,023 3,662,005 3,422,341 3,502,213 3,548,330 3,466,310
Non-accrual (3)
76,947 70,081 48,441 12,053 10,700 7,806
Second lien:
Performing 20,095 20,353 19,811 19,473 19,745 19,473
Non-accrual (3)
— — — — — —
Subordinated debt:
Performing 517 522 514 369 375 369
Non-accrual (3)
— — — — — —
LLC equity interests in SLF and GCIC SLF (4)
N/A — — N/A 127,487 123,644
Equity N/A 82,269 72,111 N/A 79,527 85,990
Total $ 4,447,215 $ 4,547,999 $ 4,210,215 $ 4,135,896 $ 4,391,770 $ 4,292,932

(1) As of March 31, 2020, $251.9 million and $219.9 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.
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(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 March 31, 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 2.3% and 1.6%, 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 March 31, 2020 and September 30, 2019, the fair value of our debt investments as a percentage of the outstanding principal value was 93.0% 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 six months ended March 31, 2020 and 2019, respectively:
For the three months ended March 31, For the six months ended March 31,
2020 2019 2020 2019
Weighted average rate of new investment fundings 7.1% 8.7% 7.3% 8.0%
Weighted average spread over LIBOR of new floating rate investment fundings 5.2% 6.0% 5.4% 5.6%
Weighted average rate of new fixed rate investment fundings N/A 8.0% N/A 8.0%
Weighted average fees of new investment fundings 1.1% 1.2% 1.3% 1.3%
Weighted average rate of sales and payoffs of portfolio investments (1)
7.7% 8.7% 7.7% 8.6%

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

As of March 31, 2020, 91.8% and 91.7% 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 March 31, 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 $31.9 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 March 31, 2020 and September 30, 2019:
As of March 31, 2020 As 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 $ 104,894 2.5% $ 115,318 2.7%
4 2,906,749 69.0 3,787,809 88.2
3 1,114,712 26.5 337,358 7.9
2 83,204 2.0 52,434 1.2
1 656
0.0 *
13
0.0 *
Total $ 4,210,215 100.0% $ 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 SLF 27
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 Company Business Description Security Type Maturity
Date
Current
Interest
Rate (1)
Principal ($) /
Shares (2)
Fair
Value (3)
(Dollars in thousands)
1A Smart Start LLC (4)
Electronic Equipment, Instruments & Components Senior loan 02/2022 6.5 % $ 2,961 $ 2,961
Advanced Pain Management Holdings, Inc. (4)(5)
Health Care Providers & Services Senior loan 12/2019 7.1 6,172 3,703
Advanced Pain Management Holdings, Inc. (4)(5)
Health Care Providers & Services Senior loan 12/2019 7.1 422 253
Advanced Pain Management Holdings, Inc. (4)(5)(7)
Health Care Providers & Services Senior loan 12/2019 7.1 193 (8)
Advanced Pain Management Holdings, Inc. (4)(5)
Health Care Providers & Services Senior loan 12/2019 10.6 2,139 4
Boot Barn, Inc. (4)
Specialty Retail Senior loan 06/2023 6.6 6,022 6,022
Brandmuscle, Inc. Professional Services Senior loan 12/2021 6.9 4,418 4,415
Brandmuscle, Inc. Professional Services Senior loan 12/2021
N/A (6)
— —
Captain D's, LLC (4)
Food & Staples Retailing Senior loan 12/2023 6.5 2,433 2,433
Captain D's, LLC (4)
Food & Staples Retailing Senior loan 12/2023 7.5 17 17
CLP Healthcare Services, Inc. Health Care Providers & Services Senior loan 12/2020 7.4 8,415 8,415
CLP Healthcare Services, Inc. Health Care Providers & Services Senior loan 12/2020 7.4 4,239 4,239
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan 10/2021 7.5 2,392 2,392
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan 10/2021 7.5 1,203 1,203
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan 10/2021 7.5 58 58
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan 10/2021 7.5 40 40
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan 10/2021
N/A (6)
— —
DISA Holdings Acquisition Subsidiary Corp. (4)
Professional Services Senior loan 06/2022 7.1 4,773 4,773
DISA Holdings Acquisition Subsidiary Corp. (4)
Professional Services Senior loan 06/2022 6.0 53 53
Flexan, LLC Health Care Equipment & Supplies Senior loan 02/2020 7.9 5,905 5,905
Flexan, LLC Health Care Equipment & Supplies Senior loan 02/2020 7.9 1,640 1,640
Flexan, LLC (4)
Health Care Equipment & Supplies Senior loan 02/2020 9.5 431 431
Gamma Technologies, LLC (4)
IT Services Senior loan 06/2024 7.3 10,084 10,084
III US Holdings, LLC Software Senior loan 09/2022 8.1 4,288 4,288
Jensen Hughes, Inc. Building Products Senior loan 03/2024 6.6 2,276 2,276
Jensen Hughes, Inc. Building Products Senior loan 03/2024 6.6 118 118
Jensen Hughes, Inc. Building Products Senior loan 03/2024 6.6 63 63
Joerns Healthcare, LLC (4)
Health Care Equipment & Supplies Senior loan 08/2024 8.2 1,286 1,286
Joerns Healthcare, LLC (4)
Health Care Equipment & Supplies Senior loan 08/2024 8.2 1,338 1,338
Mediaocean LLC Software Senior loan 08/2020
N/A (6)
— —
Paradigm DKD Group, LLC (4)(5)
Consumer Finance Senior loan 05/2022 8.4 1,480 1,094
Paradigm DKD Group, LLC (4)(5)(7)
Consumer Finance Senior loan 05/2022 8.4 (16) (59)
Pasternack Enterprises, Inc. and Fairview Microwave, Inc (4)
Electronic Equipment, Instruments & Components Senior loan 07/2025 6.0 5,264 5,264
Polk Acquisition Corp. (4)
Auto Components Senior loan 06/2022 7.3 4,465 4,376
Polk Acquisition Corp. (4)
Auto Components Senior loan 06/2022 7.3 60 58
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SLF Investment Portfolio as of September 30, 2019 - (continued)
Portfolio Company Business Description Security Type Maturity
Date
Current
Interest
Rate (1)
Principal ($) /
Shares (2)
Fair
Value (3)
(Dollars in thousands)
Polk Acquisition Corp. Auto Components Senior loan 06/2022 7.3 % $ 52 $ 51
Pyramid Healthcare, Inc. (4)
Health Care Providers & Services Senior loan 08/2020 8.8 10,047 10,047
Pyramid Healthcare, Inc. Health Care Providers & Services Senior loan 08/2020 9.2 257 257
Pyramid Healthcare, Inc. Health Care Providers & Services Senior loan 08/2020 8.8 147 147
Pyramid Healthcare, Inc. Health Care Providers & Services Senior loan 08/2020 8.8 99 99
RSC Acquisition, Inc. (4)
Insurance Senior loan 11/2022 6.4 3,785 3,785
RSC Acquisition, Inc. (4)
Insurance Senior loan 11/2021
N/A (6)
— —
Rubio's Restaurants, Inc (4)
Food & Staples Retailing Senior loan 10/2019 9.1 4,890 4,890
Sage Dental Management, LLC Health Care Providers & Services Senior loan 12/2020 7.35% cash/1.00% PIK 4,341 3,907
Sage Dental Management, LLC Health Care Providers & Services Senior loan 12/2020 8.4 70 62
Sage Dental Management, LLC Health Care Providers & Services Senior loan 12/2020 8.4 63 57
Sage Dental Management, LLC Health Care Providers & Services Senior loan 12/2020 8.4 45 40
SEI, Inc. (4)
IT Services Senior loan 07/2023 6.8 11,004 11,004
SEI, Inc. IT Services Senior loan 07/2023
N/A (6)
— —
Self Esteem Brands, LLC (4)
Hotels, Restaurants & Leisure Senior loan 02/2022 6.3 9,561 9,561
Self Esteem Brands, LLC (4)
Hotels, Restaurants & Leisure Senior loan 02/2022 8.3 415 415
Teasdale Quality Foods, Inc. Food Products Senior loan 10/2020 7.9 4,190 3,771
Teasdale Quality Foods, Inc. Food Products Senior loan 10/2020 7.9 3,285 2,956
Teasdale Quality Foods, Inc. Food Products Senior loan 10/2020 7.9 567 511
Teasdale Quality Foods, Inc. (4)
Food Products Senior loan 10/2020 7.9 424 382
Teasdale Quality Foods, Inc. Food Products Senior loan 10/2020 7.9 210 189
Upstream Intermediate, LLC Health Care Equipment & Supplies Senior loan 01/2024 6.0 2,796 2,796
WHCG Management, LLC (4)
Health Care Providers & Services Senior loan 03/2023 8.1 7,820 7,820
WIRB-Copernicus Group, Inc. (4)
Health Care Providers & Services Senior loan 08/2022 6.4 5,554 5,554
Total senior loan investments $ 154,254 $ 147,436
Joerns Healthcare, LLC (4)(8)(9)
Healthcare, Education and Childcare Common Stock N/A N/A $ 309 $ 7,458
Paradigm DKD Group, LLC (4)(8)(9)
Buildings and Real Estate LLC units N/A N/A 170 53
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 —
W3 Co. (8)(9)
Oil and Gas LLC units N/A N/A 3 1,654
W3 Co. (8)(9)
Oil and Gas Preferred stock N/A N/A — 92
Total equity investments $ 9,257
Total investments $ 154,254 $ 156,693

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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 six months ended March 31, 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 six months ended March 31, 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 six months ended March 31, 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 assets 8,759
Total assets $ 161,018
Senior credit facility $ 75,581
Other liabilities 424
Total liabilities 76,005
Members’ equity 85,013
Total liabilities and members' equity $ 161,018

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Three months ended December 31, Three months ended March 31, Six months ended March 31,
2019 2019 2019
(In thousands)
Selected Statement of Operations Information:
Interest income $ 2,800 $ 3,538 $ 7,174
Fee income — — 9
Total investment income 2,800 3,538 7,183
Interest and other debt financing expenses 634 1,133 2,320
Administrative service fee 61 64 144
Other expenses (15) 25 49
Total expenses 680 1,222 2,513
Net investment income 2,120 2,316 4,670
Net realized gains (losses) on investments — — (1,314)
Net change in unrealized appreciation (depreciation) on investments (1,603) (1,086) (2,004)
Net increase (decrease) in members' equity $ 517 $ 1,230 $ 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 SLF 28
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 Company Business Description Security Type Maturity
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 Company Business Description Security Type Maturity
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 assets 4,627
Total assets $ 116,195
Senior credit facility $ 59,559
Other liabilities 341
Total liabilities 59,900
Members’ equity 56,295
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 income 2,081
Interest and other debt financing expense 512
Administrative service fee 45
Other expenses (24)
Total expenses 533
Net investment income 1,548
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 March 31, 2020 is as follows:
Payments Due by Period (In thousands)
Total Less Than
1 Year 		1 – 3 Years 3 – 5 Years More Than
5 Years
2014 Debt Securitization $ 102,447 $ — $ — $ — $ 102,447
2018 Debt Securitization 408,200 — — — 408,200
2018 GCIC Debt Securitization 541,480 — — — 541,480
SBA debentures 287,450 — 58,200 47,000 182,250
WF Credit Facility 278,954 — — 278,954 —
MS Credit Facility II 408,452 208,452 — 200,000 —
Adviser Revolver 27,500 — 27,500 — —
DB Credit Facility 246,997 — — 246,997 —
SLF Credit Facility 29,543 — 29,543 — —
GCIC SLF Credit Facility 31,655 — 31,655 — —
Unfunded commitments (1)
151,578 151,578 — — —
Total contractual obligations $ 2,514,256 $ 360,030 $ 146,898 $ 772,951 $ 1,234,377

(1) Unfunded commitments represent unfunded commitments to fund investments as of March 31, 2020 and includes $17.5 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
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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 March 31, 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 involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of March 31, 2020, we had outstanding commitments to fund investments totaling $151.6 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 calendar quarter of 2020, the Golub Capital Employee Grant Program Rabbi Trust, or the Trust, purchased approximately $0.9 million, or 72,526 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.


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 applicable law and interpretive positions of the SEC and its staff, or if they are inconsistent with GC Advisors’ allocation procedures.

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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 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
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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 six months ended March 31, 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 March 31, 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. 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.

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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 $66.2 million and $13.7 million as of March 31, 2020 and September 30, 2019, respectively.

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
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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 six months ended March 31, 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 each of March 31, 2020 and September 30, 2019, the weighted average LIBOR floor on the loans subject to floating interest rates was 1.01%. 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, the WF Credit Facility, the SLF Credit Facility, and the GCIC SLF 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 March 31, 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 rates Increase (decrease) in
interest income 		Increase (decrease) in
interest expense 		Net increase
(decrease) in
investment income
(In thousands)
Down 25 basis points $ (10,833) $ (5,092) $ (5,741)
Up 50 basis points 21,728 10,184 11,544
Up 100 basis points 43,457 20,367 23,090
Up 150 basis points 65,185 30,551 34,634
Up 200 basis points 86,914 40,735 46,179

Although we believe that this analysis is indicative of our sensitivity to interest rate changes as of March 31, 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, the SLF Credit Facility, the GCIC SLF Credit Facility, 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 March 31, 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.

Except as set forth below, there have been no material changes during the six months ended March 31, 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.

You should carefully consider these risk factors, together with all of the other information included in this Quarterly Report on Form 10-Q and the other reports and documents filed by us with the SEC. The risks set out below are not the only risks we face. Additional risks and uncertainties not presently known to us or not presently deemed material by us may also impair our operations and performance. If any of the following events occur, our business, financial condition, results of operations and cash flows could be materially and adversely affected. In such case, our net asset value (“NAV”) and the trading price of our common stock could decline, and you may lose all or part of your investment. The risk factors described below and in our Annual Report on Form 10-K for the year ended September 30, 2019 are the principal risk factors associated with an investment in us as well as those factors generally associated with an investment company with investment objectives, investment policies, capital structure or trading markets similar to ours.

We are currently operating in a period of capital markets disruption and economic uncertainty.
The U.S. capital markets have experienced extreme volatility and disruption following the global outbreak of COVID-19 (also known as the “coronavirus”) that began in December 2019. Some economists and major investment banks have expressed concern that the continued spread of the virus globally could lead to a world-wide economic downturn. Disruption in the capital markets have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets. A prolonged period of market disruption and/or illiquidity may have an adverse effect on our business, financial condition, results of operations and cash flows. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could limit our investment originations, limit our ability to grow and negatively impact our operating results.

Events outside of our control, including public health crises, may negatively affect our portfolio companies, our investment adviser and the results of our operations.
Periods of market volatility may continue to occur in response to pandemics or other events outside of our control. These types of events could adversely affect operating results for us and for our portfolio companies. For example, in December 2019, a novel strain of coronavirus surfaced in China and has since spread to other countries, including the United States, which has resulted in restrictions on travel and the temporary closure of many corporate offices, retail stores, and manufacturing facilities and factories in the affected jurisdictions. In addition to these developments having adverse consequences for us and our portfolio companies an, the operations of our investment adviser (including those relating to the Company) have been, and could continue to be, adversely impacted, including through quarantine measures and travel restrictions imposed on its personnel or service providers based or temporarily located in affected countries, or any related health issues of such personnel or service providers. As the potential impact of the coronavirus is difficult to predict, the extent to which the coronavirus and/or other health pandemics may negatively affect our and our portfolio companies’ operating results or the duration of any potential business or supply-chain disruption, is uncertain. Any potential impact to our results will depend to a large extent on future developments and new information that may emerge regarding the duration and severity of the coronavirus and the actions taken by authorities and other entities to contain the coronavirus or treat its impact, all of which are beyond our control. These potential impacts, while uncertain, could adversely affect our and our portfolio companies' operating results.


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

None.

Item 3: Defaults Upon Senior Securities.

None.
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Item 4: Mine Safety Disclosures

None.

Item 5: Other Information.

None.
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Item 6: Exhibits.

EXHIBIT INDEX
Number Description
Fourth Amendment to Loan and Servicing Agreement, dated as of March 20, 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 March 26, 2020).
Fifteenth Amendment to Loan and Servicing Agreement, dated as of January 1, 2020, by and among Senior Loan Fund II as the Borrower and the Transferor, GC Advisors LLC as the Servicer, Wells Fargo Bank N.A. as the Institutional Lender, the Collateral Agent, the Account Bank, the Collateral Custodian, and the Administrative Agent.*
Seventh Amendment to Loan and Servicing Agreement, dated as of January 1, 2020, by and among GCIC Senior Loan Fund II as the Borrower and the GCIC Senior Loan Fund LLC as the Transferor and Servicer, GC Advisors LLC as the Servicer, Wells Fargo Bank N.A. as the Institutional Lender, the Collateral Agent, the Account Bank, the Collateral Custodian, and the Administrative Agent*
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: May 11, 2020 By /s/ David B. Golub
David B. Golub
Chief Executive Officer
(Principal Executive Officer)
Dated: May 11, 2020 By /s/ Ross A. Teune
Ross A. Teune
Chief Financial Officer
(Principal Accounting and Financial Officer)

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Note 1. OrganizationNote 2. Significant Accounting Policies and Recent Accounting UpdatesNote 3. Related Party TransactionsNote 4. InvestmentsNote 5. Forward Currency ContractsNote 6. Fair Value MeasurementsNote 7. BorrowingsNote 8. Commitments and ContingenciesNote 9. Financial HighlightsNote 10. Earnings Per ShareNote 11. Dividends and DistributionsNote 12. Subsequent EventsItem 2. Management S Discussion and Analysis Of Financial Condition and Results Of OperationsItem 3. Quantitative and Qualitative Disclosures About Market RiskItem 4. Controls and ProceduresPart II - Other InformationItem 1: Legal ProceedingsItem 1A: Risk FactorsItem 2: Unregistered Sales Of Equity Securities and Use Of ProceedsItem 3: Defaults Upon Senior SecuritiesItem 4: Mine Safety DisclosuresItem 5: Other InformationItem 6: Exhibits

Exhibits

10.1 Fourth Amendment to Loan and Servicing Agreement, dated as of March 20, 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 March 26, 2020). 10.2 Fifteenth Amendment to Loan and Servicing Agreement, dated as of January 1, 2020, by and among Senior Loan Fund II as the Borrower and the Transferor, GC Advisors LLC as the Servicer, Wells Fargo Bank N.A. as the Institutional Lender, the Collateral Agent, the Account Bank, the Collateral Custodian, and the Administrative Agent.* 10.3 Seventh Amendment to Loan and Servicing Agreement, dated as of January 1, 2020, by and among GCIC Senior Loan Fund II as the Borrower and the GCIC Senior Loan Fund LLC as the Transferor and Servicer, GC Advisors LLC as the Servicer, Wells Fargo Bank N.A. as the Institutional Lender, the Collateral Agent, the Account Bank, the Collateral Custodian, and the Administrative Agent* 31.1 Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.* 31.2 Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.* 32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*