Chicago, Oct. 7 – Golub Capital BDC, Inc. sold $300 million of notes (Baa3/BBB-/BBB-) on Thursday spread across an add-on of notes due 2024 and additional notes due 2026, according to two FWPs filed with the Securities and Exchange Commission.
Golub sold $100 million of notes that will be combined with the $400 million of 3.375% notes due April 15, 2024 that were issued on Oct. 2, 2020. The notes priced at 103.688 for a 1.809% yield, or with a spread over the benchmark Treasury of 125 basis points.
The first add-on can be redeemed early with a Treasuries plus 50 bps make-whole premium until March 15, 2024, when they can be called at par.
The company also sold $200 million of notes that will be combined with the $400 million of 2.5% notes due Aug. 24, 2026 that were issued on Feb. 24.
The second add-on priced at 99.241 to yield 2.667%, or priced with a spread of Treasuries plus 165 bps.
Pricing came on top of launch talk in the Treasuries plus 165 bps area but was upsized from $150 million.
The notes can be called before July 24, 2026 with a Treasuries plus 30 bps premium. After that date, they can be called at par.
J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, Regions Securities LLC, SG Americas Securities, LLC, Morgan Stanley & Co. LLC, CIBC World Markets Corp. and Signature Securities Group Corp. were the underwriters.
Proceeds will primarily be used to repay debt, including amounts under the JPM credit facility – amounts that may be reborrowed for general corporate purposes.
Golub is an externally managed, closed-end, non-diversified management investment company based in New York.
| Issuer: | Golub Capital BDC, Inc.
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| Issue: | Notes
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| Amount: | $300 million
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| Bookrunners: | J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc. (billing and delivery), Wells Fargo Securities, LLC, Regions Securities LLC, SG Americas Securities, LLC, Morgan Stanley & Co. LLC, CIBC World Markets Corp. and Signature Securities Group Corp.
|
| Trustee: | U.S. Bank NA
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| Counsel to issuer: | Eversheds Sutherland (US) LLP
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| Counsel to underwriters: | Proskauer Rose LLP
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| Trade date: | Oct. 7
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| Settlement date: | Oct. 15
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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|
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| 2024 add-on
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| Amount: | $100 million
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| Maturity: | April 15, 2024
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| Coupon: | 3.375%
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| Price: | 103.688
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| Yield: | 1.809%
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| Spread: | Treasuries plus 125 bps
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| Call features: | Make-whole call at Treasuries plus 50 bps until March 15, 2024; thereafter at par
|
| Cusip: | 38173MAA0
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| Total issue size: | $500 million, including $400 million issued on Oct. 2, 2020
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|
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| 2026 add-on
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| Amount: | $200 million
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| Maturity: | Aug. 24, 2026
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| Coupon: | 2.5%
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| Price: | 99.241
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| Yield: | 2.667%
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| Spread: | Treasuries plus 165 bps
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| Call features: | Make-whole call at Treasuries 30 bps until July 24, 2026; thereafter at par
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| Change-of-control: | At par
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| Cusip: | 38173MAB8
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| Total issue size: | $600 million, including $400 million issued on Feb. 24, 2021
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| Price talk: | Treasuries plus 165 bps area
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