Published on 11/30/2023 in the Prospect News Investment Grade Daily.
New Issue: Golub sells upsized $450 million 7.05% five-year notes at Treasuries plus 300 bps
By Wendy Van Sickle
Columbus, Ohio, Nov. 30 – Golub Capital BDC, Inc. sold an upsized $450 million of 7.05% five-year senior notes (Baa3/BBB-/BBB-) on Thursday at spread of 300 basis points over Treasuries, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 98.927 to yield 7.31%. The issue size was initially planned to be $350 million, according to a 497AD filing with the SEC.
Price talk was in the Treasuries plus 312.5 bps area.
The notes initially may be redeemed at the greater of a par call and a make-whole call until one month prior to maturity, then are callable at par.
SMBC Nikko Securities America Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Goldman Sachs & Co. LLC, MUFG Securities Americas Inc., Morgan Stanley & Co. LLC, Regions Securities LLC, Santander US Capital Markets LLC and SG Americas Securities, LLC were the bookrunners.
Proceeds will be used to repay outstanding debt, including borrowings under the company’s revolving credit facilities.
The business development company is based in New York.
| Issuer: | Golub Capital BDC, Inc.
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| Amount: | $450 million
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| Issue: | Senior notes
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| Maturity: | Dec. 5, 2028
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| Bookrunners: | SMBC Nikko Securities America Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Goldman Sachs & Co. LLC, MUFG Securities Americas Inc., Morgan Stanley & Co. LLC, Regions Securities LLC, Santander US Capital Markets LLC and SG Americas Securities, LLC
|
| Co-managers: | Capital One Securities, Inc., CIBC World Markets Corp., Comerica Securities, Inc. and WauBank Securities LLC
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| Coupon: | 7.05%
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| Price: | 98.927
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| Yield: | 7.31%
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| Spread: | Treasuries plus 300 bps
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| Call: | Make-whole call at Treasuries plus 45 bps until Nov. 5, 2028, then a par call
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| Pricing date: | Nov. 30
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| Settlement date: | Dec. 5
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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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| Price talk: | Treasuries plus 312.5 bps area
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| Cusip: | 38173MAD4
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