Golub to offer fixed-rate notes due 2029 via three bookrunners

By Mary-Katherine Stinson

Lexington, Ky., Jan. 29 – Golub Capital BDC, Inc. is in the market with a single tranche of fixed-rate notes due 2029, according to a 424B5 filing with the Securities and Exchange Commission.

The notes will price in February.

The notes feature a make-whole call until one month before maturity, then a par call. There is a change-of-control put at par.

Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and SMBC Nikko Securities America, Inc. are the joint bookrunners.

U.S. Bank Trust Co., NA is the trustee.

Golub is using Eversheds Sutherland (US) LLP as legal counsel. The underwriters will be represented by Kirkland & Ellis LLP.

Net proceeds from this offering will be used to repay outstanding debt under the JPM credit facility and to pay off the 2024 notes. However, Golub may reborrow under the JPM credit facility for general corporate purposes, which may include investing in portfolio companies under the company’s investment strategy.

As of Jan. 26, $500 million of the 2024 notes are outstanding.

The JPM facility matures on March 17, 2028, and borrowings currently bear interest at the applicable base rate plus a margin of either 175 basis points or 187.5 bps, subject to compliance with a borrowing base rate. The applicable base rate is one-month SOFR for dollar-denominated advances, Sonia for sterling-denominated advances and one-month Euribor for euro-denominated advances. Borrowings with a SOFR base rate are subject to an additional spread adjustment of 10 bps. As of Jan. 26, there was $266.4 million outstanding under the facility.

Golub Capital is a business development company based in New York.

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