GOLUB CAPITAL BDC, Inc. - FORM 10-Q - May 11, 2020

Attached files

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EX-32.1 - EX-32.1 - GOLUB CAPITAL BDC, Inc.gbdcfy2020q2exhibit321.htm
EX-31.2 - EX-31.2 - GOLUB CAPITAL BDC, Inc.gbdcfy2020q2exhibit312.htm
EX-31.1 - EX-31.1 - GOLUB CAPITAL BDC, Inc.gbdcfy2020q2exhibit311.htm
EX-10.3 - EX-10.3 - GOLUB CAPITAL BDC, Inc.tm2012323d1_ex10-3.htm
EX-10.2 - EX-10.2 - GOLUB CAPITAL BDC, Inc.tm2012323d1_ex10-2.htm

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

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

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes þ   No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes o No   o

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

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

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

As of 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, 2020September 30, 2019
(unaudited)
Assets    
Investments, at fair value    
Non-controlled/non-affiliate company investments$4,169,717  $4,156,713  
Non-controlled affiliate company investments22,984  12,575  
Controlled affiliate company investments17,514  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 equivalents23,705  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 receivable14,886  16,790  
Unrealized appreciation on forward currency contracts931  —  
Other assets270  333  
Total Assets$4,347,146  $4,394,863  
Liabilities    
Debt$2,362,678  $2,124,392  
Less unamortized debt issuance costs6,137  4,939  
Debt less unamortized debt issuance costs2,356,541  2,119,453  
Unrealized depreciation on forward currency contracts —  115  
Interest payable13,082  13,380  
Management and incentive fees payable18,500  12,884  
Accounts payable and other liabilities3,035  25,970  
Accrued trustee fees—  207  
Total Liabilities2,391,158  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 par2,330,839  2,310,610  
Distributable earnings
(374,985) (87,889) 
Total Net Assets1,955,988  2,222,854  
Total Liabilities and Total Net Assets$4,347,146  $4,394,863  
Number of common shares outstanding133,807,609  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,
  2020201920202019
Investment income    
From non-controlled/non-affiliate company investments:    
Interest income$74,593  $41,475  $150,452  $80,152  
Dividend income146  19  180  58  
Fee income157  125  372  647  
Total investment income from non-controlled/non-affiliate company investments74,896  41,619  151,004  80,857  
From non-controlled affiliate company investments:    
Interest income228  186  472  359  
Total investment income from non-controlled affiliate company investments228  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 income75,124  41,805  153,731  81,216  
Expenses    
Interest and other debt financing expenses21,550  10,636  43,828  20,420  
Base management fee14,858  6,594  30,064  13,033  
Incentive fee3,847  3,066  9,751  5,049  
Professional fees1,045  666  1,984  1,254  
Administrative service fee1,446  663  2,848  1,362  
General and administrative expenses432  124  579  225  
Total expenses43,178  21,749  89,054  41,343  
Net investment income31,946  20,056  64,677  39,873  
Net gain (loss) on investment transactions     
Net realized gain (loss) from:    
Non-controlled/non-affiliate company investments235  (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 transactions169  (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 investments549  (361) 122  (279) 
Controlled affiliate company investments2,537  1,077  1,708  1,183  
Translation of assets and liabilities in foreign currencies3,626  (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 outstanding133,807,609  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 StockPaid in Capital in Excess of ParDistributable EarningsTotal Net Assets
SharesPar Amount
Balance at September 30, 201860,165,454  $60  $949,547  $19,247  $968,854  
Net increase in net assets resulting from operations:
Net investment income—  —  —  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 plan421,949  1  6,961  —  6,962  
Distributions from distributable earnings —  —  —  (45,808) (45,808) 
Total increase (decrease) for the six months ended March 31, 2019421,949  1  6,961  (9,581) (2,619) 
Balance at March 31, 201960,587,403  $61  $956,508  $9,666  $966,235  
Balance at December 31, 201860,422,239  $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 plan165,164  1  2,827  —  2,828  
Distributions from distributable earnings —  —  —  (19,335) (19,335) 
Total increase (decrease) for the three months ended March 31, 2019165,164  1  2,827  (1,547) 1,281  
Balance at March 31, 201960,587,403  $61  $956,508  $9,666  $966,235  
Balance at September 30, 2019132,658,200  $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 plan1,149,409  1  20,229  —  20,230  
Distributions from distributable earnings—  —  —  (105,180) (105,180) 
Total increase (decrease) for the six months ended March 31, 20201,149,409  1  20,229  (287,096) (266,866) 
Balance at March 31, 2020133,807,609  $134  $2,330,839  $(374,985) $1,955,988  
Balance at December 31, 2019133,807,609  $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, 2020133,807,609  $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,
  20202019
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 costs1,304  1,136  
Accretion of discounts and amortization of premiums15,896  (3,930) 
Net realized (gain) loss on investments9,183  3,800  
Net realized (gain) loss on foreign currency and other transactions(14) 39  
Net change in unrealized (appreciation) depreciation on investments238,946  (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 investments445,227  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 receivable2,374  (754) 
Cash collateral held at broker for forward currency contracts(1,100) —  
Other assets82  (685) 
Interest payable(554) 5,716  
Management and incentive fees payable5,616  (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 debt695,561  1,070,586  
Repayments of debt(553,438) (865,037) 
Capitalized debt issuance costs(2,502) (3,140) 
Proceeds from other short-term borrowings64,769  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 activities54,423  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 rates220  (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 period105,180  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,
20202019
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 CostPercentage
of Net
Assets
Fair
Value (4)
Investments                   
Non-controlled/non-affiliate company investments                 
Debt investments                   
Aerospace and Defense                   
NTS Technical Systems^*#+~
One stopL + 6.00%
(a)
 7.58% 06/2021 $25,606  $25,575  1.2  %$24,325  
NTS Technical Systems+~
One stopL + 6.00%
(a)
 7.58% 06/2021 4,189  4,183  0.2  3,980  
NTS Technical Systems
One stopL + 6.00%
(a)(c)
 7.00% 06/2021 4,022  3,993  0.2  3,819  
Tronair Parent, Inc.^+
Senior loanL + 4.75%
(c)
 6.46% 09/2023 721  715  —  628  
Tronair Parent, Inc.
Senior loanL + 4.50%
(c)(f)
 6.32% 09/2021 160  158  —  138  
Whitcraft LLC^*#+~
One stopL + 6.00%
(c)
 7.45% 04/2023 64,220  64,687  3.2  61,652  
Whitcraft LLC
One stopL + 6.00%
(c)
 7.45% 04/2023 240  238  —  228  
99,158  99,549  4.8  94,770  
Automobile
Grease Monkey International, LLC^*#+
Senior loanL + 5.00%
(c)
 6.45% 11/2022   8,717  8,791  0.4  8,193  
Grease Monkey International, LLC!~
Senior loanL + 5.00%
(c)
 6.45% 11/2022   2,382  2,466  0.1  2,239  
Grease Monkey International, LLC#~
Senior loanL + 5.00%
(c)
 6.45% 11/2022   1,209  1,251  0.1  1,136  
Grease Monkey International, LLC+~
Senior loanL + 5.00%
(c)
 6.45% 11/2022   1,095  1,132  0.1  1,028  
Grease Monkey International, LLC
Senior loanL + 5.00%
(c)
 6.45% 11/2022   1,000  1,003  0.1  940  
Grease Monkey International, LLC
Senior loanP + 4.00%
(a)(f)
 6.71% 11/2022   123  124  —  112  
Grease Monkey International, LLC
Senior loanL + 5.00% 
N/A(6)
 11/2022   —  —  —  —  
JHCC Holdings LLC
One stopL + 5.50%
(a)
 6.50% 09/2025   15,709  15,424  0.7  13,824  
JHCC Holdings LLC
One stopP + 4.50%
(f)
 7.75% 09/2025   79  76  —  43  
JHCC Holdings LLC
One stopP + 4.50%
(f)
 7.75% 09/2025   13  12  —  1  
Polk Acquisition Corp.*#%&
Senior loanL + 5.25%
(c)
 6.70% 06/2022   17,680  17,443  0.8  16,265  
Polk Acquisition Corp.
Senior loanL + 5.25%
(c)
 6.69% 06/2022   170  167  —  154  
Polk Acquisition Corp.%&
Senior loanL + 5.25%
(c)
 6.70% 06/2022   104  102  —  96  
Power Stop, LLC+~
Senior loanL + 4.50%
(c)(f)
 5.95% 10/2025   2,857  2,915  0.1  2,514  
Quick Quack Car Wash Holdings, LLC*#
One stopL + 6.50%
(a)
 7.50% 04/2023   13,151  13,260  0.6  12,493  
Quick Quack Car Wash Holdings, LLC#
One stopL + 6.50%
(a)
 7.50% 04/2023   2,372  2,351  0.1  2,254  
Quick Quack Car Wash Holdings, LLC*+
One stopL + 6.50%
(a)
 7.50% 04/2023   2,073  2,147  0.1  1,969  
Quick Quack Car Wash Holdings, LLC*+
One stopL + 6.50%
(a)
 7.50% 04/2023   1,386  1,435  0.1  1,316  
Quick Quack Car Wash Holdings, LLC
One stopL + 6.50%
(a)
 7.50% 04/2023   1,122  1,187  0.1  1,066  
Quick Quack Car Wash Holdings, LLC
One stopL + 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 stopL + 7.00%
(c)
 8.61% 04/2021   9,983  10,030  10.5  9,184  
Abita Brewing Co., L.L.C.
One stopL + 7.00%
(c)
 8.74%   04/2021   20  20  1—  18  
BJH Holdings III Corp.+~
One stopL + 5.75%
(c)
 7.20%   08/2025   46,168  47,636  12.2  42,937  
BJH Holdings III Corp.
One stopL + 5.75%
(a)(c)
 6.95% 08/2025 800  793  10.1  744  
Cafe Rio Holding, Inc.^#
One stopL + 5.50%
(c)
 6.57% 09/2023 18,706  18,936  10.9  17,209  
Cafe Rio Holding, Inc.#
One stopL + 5.50%
(d)
 6.57% 09/2023 2,259  2,342  10.1  2,079  
Cafe Rio Holding, Inc.
One stopL + 5.50%
(c)(d)
 6.51% 09/2023 2,007  2,005  10.1  1,846  
Cafe Rio Holding, Inc.*#
One stopL + 5.50%
(d)
 6.57% 09/2023 1,435  1,488  10.1  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 CostPercentage
of Net
Assets
Fair
Value (4)
Beverage, Food and Tobacco - (continued)
Cafe Rio Holding, Inc.#
One stopL + 5.50%
(d)
 6.57% 09/2023 $1,266  $1,314  10.1  %$1,165  
Cafe Rio Holding, Inc.
One stopL + 5.50%
(c)
 6.77% 09/2023 250  250  —  230  
Cafe Rio Holding, Inc.
One stopL + 5.50%
(d)
 6.77% 09/2023 182  182  —  167  
Fintech Midco, LLC*#!
One stopL + 5.00%
(c)(d)
6.46%08/202424,535  24,925  1.2  23,309  
Fintech Midco, LLC#
One stopL + 5.00%
(c)(d)
 6.65% 08/2024 1,136  1,179  0.1  1,079  
Fintech Midco, LLC
One stopL + 5.00%
(a)
 6.00% 08/2024 200  199  —  190  
Flavor Producers, LLC#~
Senior loanL + 4.75%
(c)
 6.12% 12/2023 5,006  4,881  0.2  4,605  
Flavor Producers, LLC
Senior loanL + 4.75%
(c)(d)
 6.13% 12/2022 28  24  —  26  
FWR Holding Corporation^#
One stopL + 5.50%
(c)
 6.77% 08/2023 9,156  9,270  0.4  8,424  
FWR Holding Corporation#
One stopL + 5.50%
(c)
 6.77% 08/2023 1,830  1,898  0.1  1,683  
FWR Holding Corporation#
One stopL + 5.50%
(c)
 6.77% 08/2023 1,157  1,199  0.1  1,065  
FWR Holding Corporation#
One stopL + 5.50%
(c)
 6.77% 08/2023 365  377  —  336  
FWR Holding Corporation
One stopL + 5.50%
(c)
 6.77% 08/2023 275  274  —  253  
FWR Holding Corporation#
One stopL + 5.50%
(c)
 6.77% 08/2023 274  282  —  252  
FWR Holding Corporation
One stopL + 5.50%
(a)
 6.50% 08/2023 132  131  —  121  
FWR Holding Corporation
One stopL + 5.50%
(c)
 6.77% 08/2023 90  89  —  80  
Global ID Corporation*#+~
One stopL + 6.50%
(c)
 7.57% 11/2021 14,323  14,478  0.7  14,037  
Global ID Corporation*#
One stopL + 6.50%
(c)
 7.57% 11/2021 816  842  0.1  800  
Global ID Corporation#
One stopL + 6.50%
(c)
 7.57% 11/2021 714  736  —  699  
Global ID Corporation#
One stopL + 6.50%
(c)
 7.57% 11/2021 490  506  —  481  
Global ID Corporation
One stopL + 6.50%
(c)
 7.62% 11/2021 60  60  —  58  
Global ID Corporation(5)
One stopL + 6.50% 
N/A(6)
 11/2021 —  —  —  (3) 
Mendocino Farms, LLC
One stopL + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 794  821  0.1  778  
Mendocino Farms, LLC
One stopL + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 624  645  —  611  
Mendocino Farms, LLC
One stopL + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 612  608  —  600  
Mendocino Farms, LLC
One stopL + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 301  299  —  295  
Mendocino Farms, LLC
One stopL + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 300  299  —  295  
Mendocino Farms, LLC
One stopL + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 148  148  —  145  
Mendocino Farms, LLC
One stopL + 8.50%
(a)
 2.00% cash/7.50% PIK 06/2023 90  87  —  83  
Mid-America Pet Food, L.L.C.^*#
One stopL + 5.50%
(a)
 6.50% 12/2021 22,398  22,771  1.2  22,398  
Mid-America Pet Food, L.L.C.
One stopL + 5.50% 
N/A(6)
 12/2021 —  —  —  —  
NBC Intermediate, LLC^&
Senior loanL + 4.25%
(d)
 5.33% 09/2023 4,589  4,577  0.2  4,176  
NBC Intermediate, LLC#~
Senior loanL + 4.25%
(a)(d)
 5.33% 09/2023 2,353  2,385  0.1  2,142  
NBC Intermediate, LLC*#
Senior loanL + 4.25%
(d)
 5.33% 09/2023 2,309  2,342  0.1  2,101  
NBC Intermediate, LLC#
Senior loanL + 4.25%
(d)
 5.33% 09/2023 666  660  —  607  
NBC Intermediate, LLC
Senior loanL + 4.25%
(a)
 5.25% 09/2023 46  46  —  42  
Purfoods, LLC#
One stopL + 5.50%
(a)
 6.50% 05/2021 16,108  16,301  0.8  16,108  
Purfoods, LLC*
One stopL + 5.50%
(a)
 6.50% 05/2021 540  555  —  540  
Purfoods, LLC^*
One stopL + 5.50%
(a)
 6.50% 05/2021 389  400  —  389  
Purfoods, LLC*~
One stopL + 5.50%
(a)
 6.50% 05/2021 294  301  —  294  
Purfoods, LLC*~
One stopL + 5.50%
(a)
 6.50% 05/2021 294  301  —  294  
Purfoods, LLC*
One stopL + 5.50%
(a)
 6.50% 05/2021 293  301  —  293  
Purfoods, LLC*
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Beverage, Food and Tobacco - (continued)
Purfoods, LLC
One stopN/A 7.00% PIK 05/2026 $241  $246  —  %$241  
Purfoods, LLC
One stopL + 5.50%
(a)(c)
 6.50% 05/2021 150  151  —  150  
Purfoods, LLC*
One stopL + 5.50%
(a)
 6.50% 05/2021 148  152  —  148  
Purfoods, LLC
One stopL + 6.00%
(a)
 7.00% 05/2021 120  119  —  120  
Purfoods, LLC^
One stopL + 5.50%
(a)
 6.50% 05/2021 46  47  —  46  
Purfoods, LLC^
One stopL + 5.50%
(a)
 6.50% 05/2021 30  30  —  30  
Purfoods, LLC^
One stopL + 5.50%
(a)
6.50%05/202130  30  —  30  
Purfoods, LLC^
One stopL + 5.50%
(a)
6.50%05/202128  28  —  28  
Purfoods, LLC^
One stopL + 5.50%
(a)
 6.50% 05/2021 22  22  —  22  
Purfoods, LLC^
One stopL + 5.50%
(a)
 6.50% 05/2021 22  22  —  22  
Purfoods, LLC^
One stopL + 5.50%
(a)
 6.50% 05/2021 20  20  —  20  
Rubio's Restaurants, Inc.^*#(7)%&
Senior loanL + 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 loanL + 7.50%
(a)
 8.75% 04/2021 162  159  —  82  
SSRG Holdings, LLC
One stopL + 5.25%
(c)
 6.32% 11/2025 923  905  0.1  803  
SSRG Holdings, LLC
One stopL + 5.25%
(c)
 6.30% 11/2025 75  74  —  65  
Velvet Taco Holdings, Inc.~
One stopL + 7.00%
(c)
 7.84% 03/2026 1,778  1,761  0.1  1,672  
Velvet Taco Holdings, Inc.(5)
One stopL + 7.00% 
N/A(6)
 03/2026 —  —  —  (2) 
Velvet Taco Holdings, Inc.(5)
One stopL + 7.00% 
N/A(6)
 03/2026 —  (1) —  (6) 
Wood Fired Holding Corp.*#
One stopL + 5.75% 7.67% 12/2023 14,108  14,348  0.7  12,980  
Wood Fired Holding Corp.
One stopL + 5.75%
(c)
 6.95% 12/2023 697  697  —  641  
Wood Fired Holding Corp.
One stopL + 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 stopL + 5.00%
(a)(c)
 6.60% 08/2020 25,703  25,794  1.3  24,674  
Brooks Equipment Company, LLCOne stopL + 5.00%
(a)
 6.00% 08/2020 3,384  3,382  0.2  3,249  
Groundworks LLC+
Senior loanL + 5.50%
(c)
 7.34% 01/2026 4,733  4,676  0.2  4,165  
Groundworks LLC
Senior loanL + 5.50%
(c)(d)
 6.50% 01/2026 36  36  —  32  
Groundworks LLC(5)
Senior loanL + 5.50% 
N/A(6)
 01/2026 —  (1) —  —  
Jensen Hughes, Inc.%&
Senior loanL + 4.50%
(a)(f)
 5.50% 03/2024 4,213  4,213  0.2  3,791  
Jensen Hughes, Inc.
Senior loanL + 4.50%
(a)(f)
 5.50% 03/2024 1,010  1,047  0.1  910  
Jensen Hughes, Inc.+
Senior loanL + 4.50%
(a)(f)
 5.50% 03/2024 919  934  —  826  
Jensen Hughes, Inc.
Senior loanL + 4.50%
(a)(f)
 5.50% 03/2024 441  457  —  397  
Jensen Hughes, Inc.+
Senior loanL + 4.50%
(a)(f)
 5.50% 03/2024 281  285  —  253  
Jensen Hughes, Inc.
Senior loanL + 4.50%
(a)(f)
 5.50% 03/2024 219  219  —  197  
Jensen Hughes, Inc.%&
Senior loanL + 4.50%
(a)(f)
 5.50% 03/2024 117  117  —  106  
MRI Software LLC~
One stopL + 5.50%
(d)
 6.57% 02/2026 14,440  14,300  0.7  13,862  
MRI Software LLC
One stopL + 5.50%
(d)
 6.57% 02/2026 136  133  —  125  
MRI Software LLC(5)
One stopL + 5.50% 
N/A(6)
 02/2026 —  (1) —  (12) 
Paradigm DKD Group, LLC+(7)%
Senior loanL + 6.25%
(c)
 7.70% 05/2022 3,243  2,118  0.1  1,692  
Paradigm DKD Group, LLC(5)(7)
Senior loanL + 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 stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Chemicals, Plastics and Rubber - (continued)
Flexan, LLC*#
One stopL + 5.25%
(c)
 6.70% 02/2021 $3,290  $3,283  0.2  %$3,125  
Flexan, LLC%&
One stopL + 5.25%
(c)
 6.70% 02/2021 2,359  2,355  0.1  2,242  
Flexan, LLC^#
One stopL + 5.25%
(c)
 6.70% 02/2021 1,547  1,544  0.1  1,471  
Flexan, LLC
One stopL + 5.25%
(c)
 6.70% 02/2021 1,052  1,051  —  998  
Inhance Technologies Holdings LLC#
One stopL + 5.50%
(c)
 7.41% 07/2024 12,766  12,901  0.6  11,597  
Inhance Technologies Holdings LLC
One stopL + 5.50%
(c)
 7.15% 07/2024 1,937  1,968  0.1  1,760  
Inhance Technologies Holdings LLC
One stopL + 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 loanL + 5.00%
(c)(f)
 6.81% 11/2025 847  839  0.1  762  
AmerCareRoyal LLC+(8)(9)
Senior loanP + 4.00%
(f)
8.75%11/2025153  152  —  138  
Fortis Solutions Group LLC+
Senior loanL + 4.50%
(a)
5.50%12/20231,594  1,579  0.1  1,499  
Fortis Solutions Group LLC+
Senior loanL + 4.50%
(a)
 5.50% 12/2023 636  630  —  598  
Fortis Solutions Group LLC+
Senior loanL + 4.50%
(a)
 5.50% 12/2023 610  604  —  574  
Fortis Solutions Group LLC
Senior loanL + 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 loanL + 4.50%
(c)(f)
 5.95% 04/2026 15,603  15,898  0.7  13,731  
Blackbird Purchaser, Inc.
Senior loanL + 4.50%
(c)
 5.95% 04/2024 116  114  —  88  
Blackbird Purchaser, Inc.
Senior loanL + 4.50% 
N/A(6)
 04/2026 —  22  —  —  
Chase Industries, Inc.+~
Senior loanL + 5.50%
(a)
 5.45% cash/1.50% PIK 05/2025 12,059  12,193  0.5  10,612  
Chase Industries, Inc.
Senior loanL + 5.50%
(a)
 5.45% cash/1.50% PIK 05/2025 985  1,024  —  868  
Chase Industries, Inc.
Senior loanL + 5.50%
(a)
 5.45% cash/1.50% PIK 05/2023 354  358  —  310  
Inventus Power, Inc.^*+
One stopL + 6.50%
(a)
 
N/A(6)
 04/2021 14,449  13,830  0.7  13,726  
Inventus Power, Inc.(5)
One stopL + 6.50% 
N/A(6)
 04/2021 —  (28) —  (42) 
Madison Safety & Flow LLC+
Senior loanL + 4.50%
(a)
 5.52% 03/2025 505  504  —  485  
Madison Safety & Flow LLC
Senior loanP + 3.50%
(a)(f)
 6.39% 03/2025 6  6  —  6  
Pasternack Enterprises, Inc. and Fairview Microwave, Inc+~%&
Senior loanL + 4.00%
(a)
 4.99%   07/2025 23,758  24,007  1.1  21,382  
Pasternack Enterprises, Inc. and Fairview Microwave, IncSenior loanL + 4.00%
(c)
 4.82% 07/2023 36  36  —  28  
PetroChoice Holdings, Inc.^#
Senior loanL + 5.00%
(c)
 6.78% 08/2022 3,292  3,301  0.1  2,963  
Protective Industrial Products, Inc.+
Senior loanL + 4.50%
(a)
 6.10% 01/2024 998  988  —  928  
Reladyne, Inc.^*#&
Senior loanL + 5.00%
(c)
 6.91% 07/2022 33,034  33,313  1.6  31,051  
Reladyne, Inc.~
Senior loanL + 5.00%
(c)
 6.91% 07/2022 3,500  3,575  0.2  3,289  
Reladyne, Inc.^#
Senior loanL + 5.00%
(c)
 6.91% 07/2022 1,896  1,936  0.1  1,781  
Reladyne, Inc.
Senior loanL + 5.00%
(c)
 6.91% 07/2022 1,728  1,788  0.1  1,624  
Reladyne, Inc.#~
Senior loanL + 5.00%
(c)
 6.91% 07/2022 1,633  1,669  0.1  1,536  
Reladyne, Inc.#
Senior loanL + 5.00%
(c)
 6.91% 07/2022 1,553  1,606  0.1  1,460  
Reladyne, Inc.#~
Senior loanL + 5.00%
(c)
 6.91% 07/2022 745  761  —  700  
Togetherwork Holdings, LLC*#
One stopL + 6.25%
(a)
 7.25% 03/2025 15,644  15,802  0.7  13,297  
Togetherwork Holdings, LLC+~
One stopL + 6.25%
(a)
 7.25% 03/2025 1,812  1,881  0.1  1,540  
Togetherwork Holdings, LLC
One stopL + 6.25%
(a)
 7.25% 03/2025 1,759  1,823  0.1  1,495  
Togetherwork Holdings, LLC*#
One stopL + 6.25%
(a)
 7.25% 03/2025 1,715  1,779  0.1  1,458  
Togetherwork Holdings, LLC+~
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Manufacturing
Togetherwork Holdings, LLC*+
One stopL + 6.25%
(a)
 7.25% 03/2025 $1,596  $1,657  0.1  %$1,357  
Togetherwork Holdings, LLC
One stopL + 6.25%
(a)
 7.25% 03/2025 1,488  1,542  0.1  1,265  
Togetherwork Holdings, LLC*#
One stopL + 6.25%
(a)
 7.25% 03/2025 1,219  1,239  0.1  1,037  
Togetherwork Holdings, LLC
One stopL + 6.25%
(a)
 7.25% 03/2025 672  696  —  571  
Togetherwork Holdings, LLC+
One stopL + 6.25%
(a)
 7.25% 03/2025 449  445  —  382  
Togetherwork Holdings, LLC
One stopL + 6.25%
(a)
 7.25% 03/2024 300  298  —  256  
Togetherwork Holdings, LLC
One stopL + 6.25%
(a)
 7.25% 03/2025 65  67  —  55  
Togetherwork Holdings, LLC~
One stopL + 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 stopL + 5.75%
(c)
 7.48% 05/2025 13,830  14,101  0.7  13,138  
3ES Innovation, Inc.(5)(8)(12)
One stopL + 5.75% 
N/A(6)
 05/2025 —  (2) —  (10) 
Accela, Inc.*#
One stopL + 3.25%
(a)
4.25% cash/1.65% PIK09/20234,442  4,442  0.2  4,309  
Accela, Inc.(5)
One stopL + 7.00%
N/A(6)
09/2023—  —  —  (4) 
Acquia, Inc.!~
One stopL + 7.00%
(c)
8.58%10/20257,118  7,052  0.4  6,975  
Acquia, Inc.(5)
One stopL + 7.00% 
N/A(6)
 10/2025 —  (1) —  (1) 
Agility Recovery Solutions Inc.^*#
One stopL + 6.00%
(c)(f)
 7.23% 03/2023 22,591  22,737  1.1  21,686  
Agility Recovery Solutions Inc.(5)
One stopL + 6.00% 
N/A(6)
 03/2023 —  (4) —  —  
Apptio, Inc. !~
One stopL + 7.25%
(a)
 8.25 01/2025 57,009  57,804  2.9  57,009  
Apptio, Inc. (5)
One stopL + 7.25% 
N/A(6)
 01/2025 —  (2) —  —  
Arch Global CCT Holdings Corp.#+~
Senior loanL + 4.75%
(c)(f)
 5.82% 04/2026 4,165  4,203  0.2  3,748  
Arch Global CCT Holdings Corp.
Senior loanL + 4.75%
(a)
 5.74% 04/2025 58  58  —  52  
Arch Global CCT Holdings Corp.(5)
Senior loanL + 4.75% 
N/A(6)
 04/2026 —  —  —  (9) 
Astute Holdings, Inc. !
One stopL + 6.00%
(c)
 7.07% 04/2025 10,881  11,059  0.5  10,663  
Astute Holdings, Inc.
One stopL + 6.00%
(c)
 7.21% 04/2025 150  149  —  148  
Astute Holdings, Inc. (5)
One stopL + 6.00% 
N/A(6)
 04/2025 —  (2) —  —  
Aurora Lux Finco S.A.R.L.!(8)(13)
One stopL + 6.00%
(c)
 7.00% 12/2026 1,000  976  —  900  
AutoQuotes, LLC!
One stopL + 5.50%
(c)
 7.12% 11/2024 9,888  10,040  0.5  9,492  
AutoQuotes, LLC
One stopL + 5.50%
(c)
 6.72% 11/2024 100  100  —  96  
Axiom Merger Sub Inc.!~
One stopL + 5.25%
(c)
 7.07% 04/2026 5,877  5,935  0.3  5,583  
Axiom Merger Sub Inc.+~(8)(9)
One stopE + 5.50%
(g)
 5.50% 04/2026 2,423  2,446  0.1  2,304  
Axiom Merger Sub Inc.
One stopL + 5.25%
(c)
 6.25% 04/2026 30  29  —  26  
Axiom Merger Sub Inc.(5)
One stopL + 5.25% 
N/A(6)
 04/2026 —  (3) —  —  
Bazaarvoice, Inc.*#+~
One stopL + 5.75%
(a)(c)
 6.82% 02/2024 48,370  49,226  2.4  46,435  
Bazaarvoice, Inc.
One stopL + 5.75%
(c)
 6.96% 02/2024 300  297  —  284  
Bearcat Buyer, Inc.+~
Senior loanL + 4.25%
(c)
 5.70% 07/2026 2,942  2,967  0.1  2,796  
Bearcat Buyer, Inc.~
Senior loanL + 4.25%
(c)
 5.70% 07/2026 311  308  —  295  
Bearcat Buyer, Inc.
Senior loanL + 4.25%
(c)
 5.70% 07/2026 166  166  —  139  
Bearcat Buyer, Inc.
Senior loanL + 4.25%
(a)
 4.86% 07/2024 22  22  —  20  
Bullhorn, Inc.#+~
One stopL + 5.50%
(c)(d)(f)
 6.57% 10/2025 67,642  66,716  3.2  62,231  
Bullhorn, Inc.(8)(9)
One stopL + 6.00%
(i)(j)
 6.70% 10/2025 12,069  11,903  0.6  11,471  
Bullhorn, Inc.(8)(9)
One stopL + 5.75%
(c)(d)
 5.75% 10/2025 4,846  4,780  0.2  4,551  
Bullhorn, Inc.
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Bullhorn, Inc.
One stopL + 5.50%
(c)(d)
 6.57% 10/2025 $78  $77  —  %$72  
Bullhorn, Inc.
One stopL + 0.00%
(c)(d)
 1.07% 10/2025 59  55  —  34  
Calabrio, Inc. !~
One stopL + 6.50%
(c)
 7.95% 06/2025 24,880  24,895  1.2  23,636  
Calabrio, Inc.
One stopL + 6.50%
(a)
 7.50% 06/2025 72  72  —  66  
Centrify Corporation*#
One stopL + 6.25%
(d)
 7.33% 08/2024 23,257  23,301  1.0  20,466  
Centrify Corporation
One stopP + 5.25%
(f)
 8.50% 08/2024 300  300  —  264  
Clearwater Analytics, LLC^*#
One stopL + 5.50%
(d)
 7.09% 09/2022 16,458  16,453  0.8  16,129  
Clearwater Analytics, LLC*
One stopL + 5.50%
(c)
 7.41% 09/2022 6,071  6,110  0.3  5,950  
Clearwater Analytics, LLC+
One stopL + 5.50%
(c)
 7.41% 09/2022 995  977  —  975  
Clearwater Analytics, LLC(5)
One stopL + 5.50% 
N/A(6)
 09/2022 —  (3) —  (4) 
Cloudbees, Inc.
One stopL + 9.00%
(a)
 10.08% cash/0.50% PIK 05/2023 4,204  4,244  0.2  4,077  
Cloudbees, Inc.
One stopL + 9.00%
(a)
 10.08% cash/0.50% PIK 05/2023 1,465  1,479  0.1  1,422  
Cloudbees, Inc.
One stopL + 8.50% 
N/A(6)
 05/2023 —  —  —  —  
Confluence Technologies, Inc.+~
One stopL + 5.75%
(a)
 6.75% 03/2024 45,231  44,961  2.3  44,327  
Confluence Technologies, Inc.
One stopL + 5.75%
(a)
 6.75% 03/2024 69  68  —  67  
Connexin Software, Inc.!~
One stopL + 8.50%
(a)
 9.50% 02/2024 7,550  7,627  0.4  7,247  
Connexin Software, Inc.
One stopL + 8.50%9.50%02/202440  40  —  38  
Conservice, LLC+~
One stopL + 5.25%
(b)
6.51%12/20243,775  3,844  0.2  3,624  
Conservice, LLC
One stopL + 5.25%
(b)
6.30%12/20248  8  —  8  
Convercent, Inc.
One stopL + 9.00%
(c)
8.25% cash/2.75% PIK12/20242,754  2,675  0.1  2,787  
Convercent, Inc.
Subordinated debtN/A 4.00% 11/2020 138  138  —  143  
Convercent, Inc.
One stopL + 6.25%
(a)
 7.25% 12/2024 20  20  —  20  
Convercent, Inc.
One stopL + 6.25% 
N/A(6)
 12/2024 —  —  —  —  
Daxko Acquisition Corporation^*#
One stopL + 4.75%
(a)
 5.75% 09/2023 22,060  22,337  1.1  20,956  
Daxko Acquisition Corporation
One stopL + 4.75%
(a)(f)
 5.75% 09/2023 68  68  —  64  
Digital Guardian, Inc.!
One stopL + 9.50%
(a)
 8.41% cash/3.00% PIK 06/2023 8,601  8,935  0.5  8,864  
Digital Guardian, Inc.
Subordinated debtN/A 8.00% PIK 06/2023 9  6  —  9  
Digital Guardian, Inc.
One stopL + 5.00% 
N/A(6)
 06/2023 —  —  —  —  
Digital Guardian, Inc.
One stopL + 6.50% 
N/A(6)
 06/2023 —  16  —  23  
DISA Holdings Acquisition Subsidiary Corp.+~%
Senior loanL + 4.00%
(a)
 5.58% 06/2022 9,865  9,964  0.5  9,272  
DISA Holdings Acquisition Subsidiary Corp.Senior loanL + 4.00%
(c)
 5.00% 06/2022 1,448  1,448  0.1  1,361  
DISA Holdings Acquisition Subsidiary Corp.(5)
Senior loanL + 4.00% 
N/A(6)
 06/2022 —  3  —  (20) 
E2open, LLC*#+!~
One stopL + 5.75%
(c)
 7.36% 11/2024 86,337  87,307  4.2  82,884  
E2open, LLC
One stopL + 5.75%
(c)
 6.95% 11/2024 242  235  —  222  
EGD Security Systems, LLC^*#
One stopL + 5.75%
(c)
 7.62% 06/2023 30,092  30,519  1.5  30,092  
EGD Security Systems, LLC#
One stopL + 5.75%
(c)
 7.66% 06/2023 644  667  —  644  
EGD Security Systems, LLC
One stopL + 5.75%
(c)
 7.62% 06/2023 575  571  —  575  
EGD Security Systems, LLC
One stopL + 5.75%
(c)
 7.62% 06/2023 347  346  —  347  
EGD Security Systems, LLC
One stopL + 5.75%
(c)
 7.49% 06/2023 140  138  —  140  
EWC Growth Partners LLC
One stopL + 5.50%
(b)
 6.50% 03/2026 918  900  —  808  
EWC Growth Partners LLC
One stopL + 5.50%
(c)
 6.50% 03/2026 30  29  —  26  
EWC Growth Partners LLC
One stopL + 5.50%
(c)
 5.50% 03/2026 18  18  —  16  
GS Acquisitionco, Inc.*#+!~
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
GS Acquisitionco, Inc.*#
One stopL + 5.75%
(d)
 6.83% 05/2024 $12,820  $13,162  0.7  %$12,692  
GS Acquisitionco, Inc.#
One stopL + 5.75%
(d)
 6.83% 05/2024 3,303  3,392  0.2  3,270  
GS Acquisitionco, Inc.+~
One stopL + 5.75%
(d)
 6.83% 05/2024 3,048  3,130  0.2  3,017  
GS Acquisitionco, Inc.#
One stopL + 5.75%
(d)
 6.83% 05/2024 1,908  1,960  0.1  1,890  
GS Acquisitionco, Inc.
One stopL + 5.75%
(d)
 6.83% 05/2024 152  148  —  148  
GS Acquisitionco, Inc.
One stopL + 5.75%
(d)
 6.83% 05/2024 60  60  —  59  
HealthcareSource HR, Inc.*#
One stopL + 5.25%
(c)
 6.70% 05/2023 33,917  34,037  1.7  32,899  
HealthcareSource HR, Inc.
One stopL + 5.25%
(c)
 6.37% 05/2023 190  189  —  184  
HSI Halo Acquisition, Inc.+~
One stopL + 5.75%
(a)
 6.75% 08/2026 4,112  4,163  0.2  3,907  
HSI Halo Acquisition, Inc.
One stopL + 5.75%
(a)
 6.75% 08/2026 304  298  —  272  
HSI Halo Acquisition, Inc.
One stopP + 4.75%
(f)
 8.00% 09/2025 50  50  —  48  
Hydraulic Authority III Limited~(8)(9)(10)
One stopL + 6.00%
(i)(j)
 7.00% 11/2025 12,340  12,567  0.6  11,439  
Hydraulic Authority III Limited(8)(9)(10)
One stopN/A 11.00% PIK 11/2025 199  203  —  196  
Hydraulic Authority III Limited(8)(9)(10)
One stopL + 6.00%
(a)(c)(d)
 7.00% 11/2025 84  84  —  80  
ICIMS, Inc.!~
One stopL + 6.50%
(a)
 7.50% 09/2024 14,355  14,571  0.7  13,924  
ICIMS, Inc.!~
One stopL + 6.50%
(a)
 7.50% 09/2024 4,501  4,586  0.2  4,365  
ICIMS, Inc.(5)
One stopL + 6.50% 
N/A(6)
 09/2024 —  (1) —  (2) 
Imprivata, Inc.*#+~
Senior loanL + 4.00%
(c)
 5.45% 10/2023 9,311  9,523  0.5  9,311  
Imprivata, Inc.(5)
Senior loanL + 4.00% 
N/A(6)
 10/2023 —  (1) —  —  
Infinisource, Inc.+~
One stopL + 4.75%
(c)
 6.20% 10/2026 29,328  28,866  1.4  26,982  
Infinisource, Inc.
One stopL + 4.75%
(c)
6.54%10/2026111  110  —  102  
Infinisource, Inc.(5)
One stopL + 4.75%
N/A(6)
10/2026—  (2) —  (14) 
Infinisource, Inc.(5)
One stopL + 4.75%
(c)
N/A(6)
10/2026—  (3) —  (25) 
Infogix, Inc.*#
One stopL + 6.75%
(c)
8.20%04/20247,215  7,364  0.4  6,927  
Infogix, Inc.*+One stopL + 6.75%
(c)
 8.20% 04/2024 1,113  1,132  0.1  1,068  
Infogix, Inc.
One stopL + 6.75%
(c)
 7.75% 04/2024 90  91  —  86  
Integral Ad Science, Inc.!~
One stopL + 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 stopL + 6.00% 
N/A(6)
 07/2023 —  (3) —  (6) 
Integration Appliance, Inc.^*!~
One stopL + 7.25%
(c)
 9.43% 08/2023 68,335  69,253  3.4  66,969  
Integration Appliance, Inc.
One stopL + 7.25%
(a)(c)
 8.54% 08/2023 973  969  0.1  954  
Internet Truckstop Group LLC*#!
One stopL + 5.50%
(c)
 6.96% 04/2025 22,701  23,343  1.1  21,794  
Internet Truckstop Group LLC(5)
One stopL + 5.50% 
N/A(6)
 04/2025 —  (3) —  (10) 
Invoice Cloud, Inc.!
One stopL + 6.50%
(c)
 4.96% cash/3.25% PIK 02/2024 6,415  6,459  0.3  6,028  
Invoice Cloud, Inc.
One stopL + 6.50%
(c)
 7.96% 02/2024 1,603  1,602  0.1  1,460  
Invoice Cloud, Inc.(5)
One stopL + 6.00% 
N/A(6)
 02/2024 —  —  —  (4) 
JAMF Holdings, Inc.!~
One stopL + 7.00%
(c)
 8.70% 11/2022 13,559  13,767  0.7  13,422  
JAMF Holdings, Inc.(5)
One stopL + 7.00% 
N/A(6)
 11/2022 —  —  —  (2) 
Kareo, Inc.
One stopL + 9.00%
(a)
 10.00% 06/2022 10,273  10,419  0.5  10,356  
Kareo, Inc.!
One stopL + 9.00%
(a)
 10.00% 06/2022 941  960  0.1  949  
Kareo, Inc.
One stopL + 9.00%
(a)
 10.00% 06/2022 753  769  —  759  
Kareo, Inc.
One stopP + 8.00%
(f)
 11.25% 06/2022 80  80  —  80  
Kaseya Traverse Inc!~
One stopL + 7.00%
(a)(c)
 5.91% cash/3.00% PIK 05/2025 35,546  36,614  1.8  34,472  
Kaseya Traverse Inc
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Kaseya Traverse IncOne stopL + 6.50%
(a)(b)(c)
 7.50% 05/2025 $181  $180  —  %$172  
Kaseya Traverse Inc(5)
One stopL + 4.00% 
N/A(6)
 05/2025 —  (1) —  —  
Learn-it Systems, LLC!
Senior loanL + 4.50%
(c)
 5.39% 03/2025 2,553  2,612  0.1  2,349  
Learn-it Systems, LLC
Senior loanL + 4.50%
(c)
 6.17% 03/2025 207  206  —  191  
Learn-it Systems, LLC
Senior loanL + 4.50%
(a)(c)(f)
 5.95% 03/2025 32  33  —  30  
Litera Bidco LLC+~
One stopL + 5.75%
(c)
 7.21% 05/2026 3,695  3,721  0.2  3,585  
Litera Bidco LLC
One stopL + 5.75%
(c)
 7.21% 05/2026 705  731  —  683  
Litera Bidco LLC
One stopL + 5.75%
(c)
 7.21% 05/2026 705  732  —  683  
Litera Bidco LLC
One stopL + 5.75%
(c)
 6.95% 05/2025 60  60  —  58  
Maverick Bidco Inc.*#!~
One stopL + 6.25%
(d)
 7.32% 04/2023 39,667  39,929  2.0  38,080  
Maverick Bidco Inc.*#
One stopL + 6.25%
(d)
 7.32% 04/2023 3,199  3,263  0.2  3,071  
Maverick Bidco Inc.
One stopL + 6.25%
(c)
 7.60% 04/2023 202  199  —  192  
MetricStream, Inc.!
One stopL + 7.00%
(c)
 9.00% 05/2024 9,131  9,220  0.5  8,921  
MetricStream, Inc.(5)
One stopL + 7.00% 
N/A(6)
 05/2024 —  —  —  (4) 
MetricStream, Inc.(5)
One stopL + 7.00% 
N/A(6)
 04/2024 —  11  —  (46) 
Mindbody, Inc.!~
One stopL + 7.00%
(c)
 8.00% 02/2025 48,351  49,227  2.2  43,516  
Mindbody, Inc.
One stopL + 7.00%
(c)
 8.07% 02/2025 238  237  —  214  
Ministry Brands, LLC+
Senior loanL + 4.00%
(b)
 5.62% 12/2022 1,453  1,474  0.1  1,308  
Ministry Brands, LLC+
Senior loanL + 4.00%
(b)
 5.62% 12/2022 831  843  —  748  
Ministry Brands, LLC
Senior loanL + 4.00%
(b)
 5.62% 12/2022 379  392  —  341  
MSHC, Inc.+
Senior loanL + 4.25%
(a)(f)
 5.25% 12/2024 345  341  —  324  
MSHC, Inc.(5)
Senior loanL + 4.25% 
N/A(6)
 12/2024 —  —  —  (3) 
Namely, Inc.!~
One stopL + 7.50%
(c)
 8.25% cash/1.25% PIK 06/2024 3,557  3,596  0.2  3,378  
Namely, Inc.
One stopL + 7.50%
(c)
8.25% cash/1.25% PIK06/20242,020  2,005  0.1  1,851  
Namely, Inc.(5)
One stopL + 6.25%
N/A(6)
06/2024—  —  —  (6) 
Net Health Acquisition Corp.*#
One stopL + 5.50%
(d)
6.57%12/20238,598  8,716  0.4  8,340  
Net Health Acquisition Corp.+~
One stopL + 5.50%
(d)
6.57%12/20236,880  7,017  0.3  6,674  
Net Health Acquisition Corp.*#
One stopL + 5.50%
(d)
6.57%12/20231,202  1,218  0.1  1,165  
Net Health Acquisition Corp.(5)
One stopL + 5.50% 
N/A(6)
 12/2023 —  (2) —  (6) 
Netsmart Technologies, Inc.
Senior loanL + 4.75%
(a)
 5.70% 04/2021 42  40  —  26  
Nextech Holdings, LLC+~
One stopL + 5.50%
(a)
 6.49% 06/2025 4,032  4,105  0.2  3,710  
Nextech Holdings, LLC
One stopL + 5.50%
(c)
 6.11% 06/2025 500  496  —  452  
Nextech Holdings, LLC(5)
One stopL + 5.50% 
N/A(6)
 06/2025 —  (22) —  (188) 
Nexus Brands Group, Inc.*#
One stopL + 6.00%
(c)
 7.61% 11/2023 9,426  9,534  0.4  8,295  
Nexus Brands Group, Inc.+~(8)(9)
One stopL + 6.00%
(j)
 7.00% 11/2023 7,181  7,318  0.3  6,247  
Nexus Brands Group, Inc.#
One stopL + 6.00%
(c)
 7.61% 11/2023 1,996  2,071  0.1  1,756  
Nexus Brands Group, Inc.#~One stopL + 6.00%
(c)
 7.61% 11/2023 1,444  1,499  0.1  1,271  
Nexus Brands Group, Inc.~One stopL + 6.00%
(c)
 7.61% 11/2023 769  762  —  677  
Nexus Brands Group, Inc.
One stopL + 6.00%
(c)(d)
 7.61% 11/2023 200  202  —  176  
Nexus Brands Group, Inc.(8)(9)
One stopL + 6.00%
(c)
 7.00% 11/2023 70  69  —  66  
Nexus Brands Group, Inc.(5)(8)(9)
One stopL + 6.00% 
N/A(6)
 11/2023 —  (1) —  —  
Nexus Brands Group, Inc.(5)
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Nexus Brands Group, Inc.
One stopL + 6.00% 
N/A(6)
 11/2023 $—  $—  —  %$—  
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH!
One stopP + 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 stopL + 6.00% 
N/A(6)
 10/2024 —  —  —  1  
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH
One stopL + 7.75% 
N/A(6)
 10/2024 —  —  —  3  
Property Brands, Inc.#
One stopL + 6.00%
(a)
 7.00% 01/2024 19,947  20,167  0.9  18,351  
Property Brands, Inc.+~
One stopL + 6.00%
(a)
 7.00% 01/2024 13,736  13,602  0.7  12,636  
Property Brands, Inc.*#
One stopL + 6.00%
(a)
 7.00% 01/2024 6,686  6,811  0.3  6,151  
Property Brands, Inc.^~
One stopL + 6.00%
(a)
 7.00% 01/2024 3,260  3,381  0.2  2,998  
Property Brands, Inc.
One stopL + 6.00%
(a)
 7.00% 01/2024 1,432  1,483  0.1  1,317  
Property Brands, Inc.#
One stopL + 6.00%
(a)
 7.00% 01/2024 1,212  1,255  0.1  1,114  
Property Brands, Inc.
One stopL + 6.00%
(a)
 7.00% 01/2024 1,194  1,238  0.1  1,099  
Property Brands, Inc.
One stopL + 6.00%
(a)
 7.00% 01/2024 955  948  —  878  
Property Brands, Inc.
One stopL + 6.00%
(a)
 7.00% 01/2024 505  522  —  464  
Property Brands, Inc.(5)
One stopL + 6.00% 
N/A(6)
 01/2024 —  (1) —  (16) 
Property Brands, Inc.(5)
One stopL + 6.00% 
N/A(6)
 01/2024 —  (3) —  (281) 
PCS Intermediate II Holdings, LLC~
One stopL + 5.50%
(e)
 6.50% 01/2026 14,566  14,424  0.7  13,983  
PCS Intermediate II Holdings, LLC
One stopL + 5.50%
(a)
 6.50% 01/2026 40  39  —  36  
Personify, Inc.*+
One stopL + 5.75%
(c)
 7.20% 09/2024 15,535  15,823  0.7  14,137  
Personify, Inc.
One stopL + 5.75%
(c)
 7.00% 09/2024 80  80  —  66  
PlanSource Holdings, Inc. !~
One stopL + 6.25%
(d)
 7.95% 04/2025 11,416  11,556  0.6  10,959  
PlanSource Holdings, Inc. (5)
One stopL + 6.25% 
N/A(6)
 04/2025 —  (1) —  (6) 
Project Power Buyer, LLC+~
One stopL + 5.75%
(c)
 7.21% 05/2026 11,554  11,784  0.6  10,977  
Project Power Buyer, LLC(5)
One stopL + 5.75% 
N/A(6)
 05/2025 —  (1) —  (8) 
PT Intermediate Holdings III, LLC+~
One stopL + 5.50%
(c)
 6.95% 10/2025 29,926  29,472  1.4  27,532  
Qgenda Intermediate Holdings, LLC+
One stopL + 5.00%
(a)
 6.00% 06/2025 15,354  15,374  0.7  14,433  
Qgenda Intermediate Holdings, LLC~
One stopL + 5.00%
(a)
 6.00% 06/2025 998  988  0.1  938  
Qgenda Intermediate Holdings, LLC
One stopL + 5.00%
(a)
 6.00% 06/2025 200  198  —  188  
Recordxtechnologies, LLC+
One stopL + 5.50%
(a)
6.50%12/2025747  738  —  702  
Recordxtechnologies, LLC
One stopL + 5.50%
(a)
6.50%12/202542  41  —  37  
Recordxtechnologies, LLC(5)
One stopL + 5.50%
N/A(6)
12/2025—  (2) —  —  
RegEd Aquireco, LLC+
Senior loanL + 4.25%
(a)
5.25%12/202411,474  11,470  0.5  10,556  
RegEd Aquireco, LLC
Senior loanL + 4.25%
(a)(f)
5.43%12/2024236  235  —  216  
RegEd Aquireco, LLC(5)
Senior loanL + 4.25% 
N/A(6)
 12/2024 —  (5) —  —  
Saba Software, Inc.^*#+~
Senior loanL + 4.50%
(a)
 5.50% 05/2023 48,926  49,814  2.5  48,926  
Saba Software, Inc.+~
Senior loanL + 4.50%
(a)
 5.50% 05/2023 10,953  11,064  0.6  10,953  
Saba Software, Inc.(5)
Senior loanL + 4.50% 
N/A(6)
 05/2023 —  (1) —  —  
SnapLogic, Inc.
One stopL + 8.75%
(c)
 5.75% cash/5.50% PIK 09/2024 5,816  5,740  0.3  5,580  
SnapLogic, Inc.(5)
One stopL + 3.25% 
N/A(6)
 09/2024 —  —  —  (3) 
SnapLogic, Inc.(5)
One stopL + 3.25% 
N/A(6)
 09/2024 —  —  —  (1) 
Sontatype, Inc.!
One stopL + 6.75%
(a)
 7.52% 12/2025 851  842  —  808  
Sontatype, Inc.(5)
One stopL + 6.75% 
N/A(6)
 12/2025 —  (3) —  (7) 
Caliper Software, Inc.#!~
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Caliper Software, Inc.
One stopL + 5.50%
(b)
 6.60% 11/2023 $350  $352  —  %$336  
Telesoft Holdings LLC~
One stopL + 5.75%
(c)
 7.20% 12/2025 909  890  0.1  891  
Telesoft Holdings LLC
One stopL + 5.75%
(a)
 6.75% 12/2025 61  59  —  59  
TI Intermediate Holdings, LLC+
Senior loanL + 4.50%
(c)
 5.95% 12/2024 3,534  3,599  0.2  3,358  
TI Intermediate Holdings, LLC
Senior loanL + 4.50%
(a)(f)
 5.65% 12/2024 48  48  —  46  
Transact Holdings, Inc.+~
Senior loanL + 4.75%
(a)
 5.74% 04/2026 3,094  3,141  0.1  2,398  
Transaction Data Systems, Inc.*#+!~
One stopL + 5.25%
(c)
 6.71% 06/2021 83,904  85,275  4.1  80,547  
Transaction Data Systems, Inc.
One stopL + 5.25%
(a)(c)
 6.71% 06/2021 300  302  —  288  
Trintech, Inc.^*#
One stopL + 6.00%
(c)
 7.78% 12/2023 22,514  22,904  1.1  21,839  
Trintech, Inc.^#!
One stopL + 6.00%
(c)
 7.78% 12/2023 9,336  9,549  0.5  9,055  
Trintech, Inc.
One stopP + 5.00%
(c)(f)
 8.19% 12/2023 300  301  —  292  
True Commerce, Inc.^*#~
One stopL + 5.75%
(c)
 7.20% 11/2023 15,350  15,655  0.8  15,044  
True Commerce, Inc.+(8)(9)
One stopL + 5.75%
(c)
 7.20% 11/2023 2,589  2,693  0.1  2,535  
True Commerce, Inc.
One stopL + 5.75%
(c)
 7.20% 11/2023 914  951  0.1  896  
True Commerce, Inc.
One stopL + 5.75%
(c)
 7.12% 11/2023 150  149  —  148  
Upserve, Inc.!~
One stopL + 6.50%
(e)
 7.50% 07/2023 6,141  6,203  0.3  5,650  
Upserve, Inc.
One stopL + 6.50%
(e)
 7.50% 07/2023 1,451  1,504  0.1  1,335  
Upserve, Inc.(5)
One stopL + 6.50% 
N/A(6)
 07/2023 —  —  —  (4) 
Vector CS Midco Limited & Cloudsense Ltd.!~(8)(9)(10)
One stopL + 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 stopL + 8.05%
(c)
 4.50% cash/3.55% PIK 05/2024 116  116  —  116  
Velocity Technology Solutions, Inc.*#
One stopL + 6.00%
(c)
 7.45% 12/2023 18,370  18,694  0.9  18,186  
Velocity Technology Solutions, Inc.
One stopL + 6.00%
(d)
 7.45% 12/2023 100  99  —  98  
Vendavo, Inc.*!~
One stopL + 6.50%
(c)
 8.11% 10/2022 35,547  35,500  1.8  34,836  
Vendavo, Inc.
One stopP + 5.25%
(f)
 8.50% 10/2022 1,579  1,575  0.1  1,547  
Verisys Corporation*#
One stopL + 6.50%
(c)
 7.95% 01/2023 8,511  8,664  0.4  8,000  
Verisys Corporation
One stopL + 6.50%
(c)
 7.73% 01/2023 40  39  —  32  
Workforce Software, LLC!~
One stopL + 6.50%
(c)
 8.11% 07/2025 27,059  27,831  1.3  25,976  
Workforce Software, LLC(5)
One stopL + 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 stopL + 5.25%
(a)
 6.25% 09/2022 29,794  30,161  1.5  28,602  
Pace Analytical Services, LLC^#
One stopL + 5.25%
(a)
 6.25% 09/2022 2,771  2,811  0.1  2,659  
Pace Analytical Services, LLC#
One stopL + 5.25%
(a)
6.25%09/20221,659  1,715  0.1  1,593  
Pace Analytical Services, LLC*#
One stopL + 5.25%
(a)
6.25%09/20221,527  1,552  0.1  1,465  
Pace Analytical Services, LLC#
One stopL + 5.25%
(a)
6.25%09/20221,270  1,282  0.1  1,220  
Pace Analytical Services, LLC#
One stopL + 5.25%
(a)
6.25%09/20221,229  1,269  0.1  1,180  
Pace Analytical Services, LLC
One stopL + 5.25%
(a)
6.25%09/2022998  980  —  958  
Pace Analytical Services, LLC*#
One stopL + 5.25%
(a)
 6.25% 09/2022 680  690  —  654  
Pace Analytical Services, LLC#
One stopL + 5.25%
(a)
 6.25% 09/2022 562  581  —  540  
Pace Analytical Services, LLC
One stopL + 5.25%
(a)
 6.25% 09/2022 189  194  —  181  
Pace Analytical Services, LLC
One stopL + 5.25%
(c)
 6.47% 09/2022 150  149  —  138  
WRE Holding Corp.*#
Senior loanL + 5.00%
(a)(c)
 6.76% 01/2023 2,288  2,332  0.1  2,151  
WRE Holding Corp.~
Senior loanL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Ecological - (continued)
WRE Holding Corp.
Senior loanL + 5.00%
(a)(c)
 6.76% 01/2023 $312  $324  —  %$294  
WRE Holding Corp.
Senior loanL + 5.00%
(a)(c)
 6.46% 01/2023 54  55  —  50  
44,428  45,074  2.2  42,572  
Electronics
Appriss Holdings, Inc.#+~
One stopL + 5.50%
(a)
 6.49% 06/2026 25,095  25,860  1.3  24,593  
Appriss Holdings, Inc.
One stopL + 5.50%
(a)
 6.49% 06/2025 202  198  —  194  
Diligent Corporation*#+!
One stopL + 5.50%
(c)(d)
 6.57% 04/2022 35,625  36,717  1.8  35,625  
Diligent Corporation*~
One stopL + 5.50%
(c)(d)
 6.57% 04/2022 25,737  25,578  1.3  25,737  
Diligent Corporation#~
One stopL + 5.50%
(c)
 6.95% 04/2022 12,474  12,717  0.7  12,474  
Diligent Corporation^*#
One stopL + 5.50%
(c)(d)
 6.95% 04/2022 11,250  11,545  0.6  11,250  
Diligent Corporation#
One stopL + 5.50%
(c)(d)
 6.93% 04/2022 1,263  1,262  0.1  1,262  
Diligent Corporation
One stopL + 5.50%
(d)
 7.42% 04/2022 486  502  —  486  
Diligent CorporationOne stopL + 5.50%
(c)(d)
 6.92% 04/2022 285  287  —  285  
Diligent Corporation~
One stopL + 5.50%
(c)(d)
 6.57% 04/2022 100  100  —  100  
Diligent Corporation~
One stopL + 5.50%
(c)(d)
 6.57% 04/2022 80  79  —  80  
Diligent Corporation
One stopL + 5.50%
(d)
 7.42% 04/2022 39  38  —  39  
Diligent Corporation~
One stopL + 5.50%
(c)(d)
 6.57% 04/2022 35  35  —  35  
Diligent Corporation
One stopL + 5.50% 
N/A(6)
 04/2022 —  21  —  —  
Episerver, Inc.!~(8)(9)
One stopL + 6.25%
(a)
 6.25% 10/2024 20,646  20,995  1.0  19,453  
Episerver, Inc.#~
One stopL + 6.00%
(a)
 7.00% 10/2024 12,248  12,459  0.6  11,635  
Episerver, Inc.(5)
One stopL + 6.00% 
N/A(6)
 10/2024 —  (2) —  (20) 
ES Acquisition LLC
One stopL + 5.50%
(c)
 7.18% 11/2025 667  654  —  633  
ES Acquisition LLC
One stopL + 5.50%
(c)(d)
 6.84% 11/2025 87  86  —  82  
ES Acquisition LLC
One stopL + 5.50%
(c)
 7.41% 11/2025 36  36  —  34  
ES Acquisition LLC(5)
One stopL + 5.50% 
N/A(6)
 11/2025 —  (2) —  —  
Gamma Technologies, LLC^*#!~%&
One stopL + 5.00%
(a)
 6.00% 06/2024 47,588  47,949  2.3  45,207  
Gamma Technologies, LLC(5)
One stopL + 5.00% 
N/A(6)
 06/2024 —  (1) —  (10) 
Red Dawn SEI Buyer, Inc.+
Senior loanL + 4.25%
(d)
 5.32% 11/2025 756  747  —  695  
Red Dawn SEI Buyer, Inc.
Senior loanL + 4.25%
(a)
 5.25% 11/2025 111  110  —  102  
Red Dawn SEI Buyer, Inc.(5)
Senior loanL + 4.25% 
N/A(6)
 11/2025 —  (1) —  (11) 
Silver Peak Systems, Inc. !
One stopL + 7.00%
(a)
 9.00% 04/2024 5,998  6,016  0.3  5,881  
Silver Peak Systems, Inc.
One stopL + 7.00% 
N/A(6)
 04/2024 —  —  —  2  
Sovos Compliance*+
One stopL + 4.75%
(a)
 5.75% 04/2024 19,614  20,232  1.0  19,221  
Sovos Compliance!
Second lienL + 12.00% 12.00% PIK 04/2025 9,390  9,655  0.5  9,390  
Sovos Compliance*#
One stopL + 4.75%
(a)
 5.75% 04/2024 1,902  1,963  0.1  1,864  
Sovos Compliance
Second lienL + 12.00% 12.00% PIK 04/2025 1,270  1,312  0.1  1,270  
Sovos Compliance*#
One stopL + 4.75%
(a)
5.75%04/2024768  793  —  752  
Sovos Compliance
One stopL + 4.75%
(a)
5.75%04/2024198  196  —  194  
Sovos Compliance
One stopL + 4.75%
(a)
5.75%04/202485  83  —  83  
Unison Software Holdings, Inc.^+~
Senior loanP + 3.50%
(f)
6.75%05/20233,789  3,816  0.2  3,675  
Watchfire Enterprises, Inc.
Second lienL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Finance
Institutional Shareholder Services*!~
Senior loanL + 4.50%
(c)(d)
 5.57% 03/2026 $18,870  $19,291  0.9  %$18,116  
Institutional Shareholder Services
Senior loanL + 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 loanL + 5.75%
(a)
 6.75% 04/2021 3,827  3,608  0.2  3,597  
Teasdale Quality Foods, Inc.%&
Senior loanL + 5.75%
(a)
 6.75% 04/2021 3,094  2,916  0.2  2,909  
Teasdale Quality Foods, Inc.%&
Senior loanL + 5.75%
(a)
 6.75% 04/2021 518  488  —  486  
Teasdale Quality Foods, Inc.%
Senior loanL + 5.75%
(a)
 6.75% 04/2021 387  367  —  364  
Teasdale Quality Foods, Inc.+Senior loanL + 5.75%
(a)
 6.75% 04/2021 262  260  —  246  
Teasdale Quality Foods, Inc.%&
Senior loanL + 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 loanL + 5.00%
(c)(d)
 6.07% 02/2026 13,276  13,146  0.7  12,746  
Active Day, Inc.#
One stopL + 6.50%
(d)
 7.57% 12/2021 24,695  24,964  1.1  21,731  
Active Day, Inc.^#
One stopL + 6.50%
(d)
 7.57%   12/2021 1,905  1,928  0.1  1,678  
Active Day, Inc.*#
One stopL + 6.50%
(d)
 7.57% 12/2021 1,228  1,244  0.1  1,081  
Active Day, Inc.
One stopL + 6.50%
(d)
 7.57% 12/2021 978  1,008  —  861  
Active Day, Inc.
One stopL + 6.50%
(d)
 7.57% 12/2021 863  857  —  759  
Active Day, Inc.*#
One stopL + 6.50%
(d)
 7.57% 12/2021 848  859  —  746  
Active Day, Inc.
One stopL + 6.50%
(d)
 7.57% 12/2021 102  102  —  90  
Active Day, Inc.
One stopL + 6.50%
(d)
 
N/A(6)
 12/2021 —  —  —  —  
Acuity Eyecare Holdings, LLCOne stopL + 6.25%
(c)
 7.99% 03/2024 7,147  7,184  0.3  6,646  
Acuity Eyecare Holdings, LLC#
One stopL + 6.25%
(c)
 7.70% 03/2024 5,990  6,073  0.3  5,571  
Acuity Eyecare Holdings, LLC~
One stopL + 6.25%
(c)
 7.70% 03/2024 5,615  5,738  0.3  5,222  
Acuity Eyecare Holdings, LLC^~
One stopL + 6.25%
(c)
 7.70% 03/2024 3,277  3,393  0.2  3,046  
Acuity Eyecare Holdings, LLC
One stopL + 6.25%
(c)
 7.70% 03/2024 793  819  —  737  
Acuity Eyecare Holdings, LLC
One stopL + 6.25%
(c)
 7.70% 03/2024 197  188  —  183  
Acuity Eyecare Holdings, LLC
One stopL + 6.25%
(c)
 7.62% 03/2023 150  149  —  139  
ADCS Clinics Intermediate Holdings, LLC*#!
One stopL + 5.75%
(c)(d)
 6.82% 05/2022 42,093  42,632  2.0  39,987  
ADCS Clinics Intermediate Holdings, LLC*#
One stopL + 5.75%
(c)(d)
 6.82% 05/2022 212  214  —  200  
ADCS Clinics Intermediate Holdings, LLC
One stopL + 5.75%
(a)(d)
 6.79% 05/2022 200  200  —  190  
ADCS Clinics Intermediate Holdings, LLC*
One stopL + 5.75%
(c)(d)
 6.82% 05/2022 164  166  —  156  
ADCS Clinics Intermediate Holdings, LLC*#
One stopL + 5.75%
(c)(d)
 6.82% 05/2022 62  63  —  60  
Advanced Pain Management Holdings, Inc.+(7)%
Senior loanL + 5.00%
(a)
 6.25% 04/2020 11,433  6,860  0.3  5,817  
Advanced Pain Management Holdings, Inc.(7)
Senior loanL + 8.50%
(a)
 9.75% 04/2020 4,082  7  —  7  
Advanced Pain Management Holdings, Inc.(7)
Senior loanL + 5.00%
(a)
 6.25% 04/2020 928  557  —  471  
Advanced Pain Management Holdings, Inc.+(7)%
Senior loanL + 5.00%
(a)
 6.25% 04/2020 782  469  —  398  
Agilitas USA, Inc.*#
One stopL + 5.50%
(c)
 7.41% 04/2022 10,153  10,191  0.5  9,139  
Agilitas USA, Inc.
One stopL + 5.50%
(c)
 7.04% 04/2022 100  100  —  86  
Apothecary Products, LLC+
Senior loanL + 4.25%
(c)
 6.03% 07/2023 2,904  3,028  0.1  2,643  
Apothecary Products, LLC
Senior loanL + 4.25%
(c)
5.25%07/2023782  782  —  711  
Aris Teleradiology Company, LLC+(7)
Senior loanL + 5.50%
(c)(d)
7.41%03/20215,403  3,236  —  —  
Aris Teleradiology Company, LLC(7)
Senior loanL + 5.50%
(c)(d)
7.26%03/20211,087  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 CostPercentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
Aris Teleradiology Company, LLC(7)
Senior loanL + 5.50%
(c)(d)
7.41%03/2021$320  $320  —  %$—  
Aspen Medical Products, LLC+~
One stopL + 5.25%
(a)
 6.88% 06/2025 4,555  4,630  0.2  4,190  
Aspen Medical Products, LLC
One stopL + 5.25%
(c)
 6.50% 06/2025 34  34  —  32  
Belmont Instrument, LLC+
Senior loanL + 4.75%
(d)
 5.82% 12/2023 5,283  5,232  0.3  5,019  
BIO18 Borrower, LLC!
One stopL + 5.25%
(c)
 7.03% 11/2024 11,131  11,171  0.6  10,908  
BIO18 Borrower, LLC*
One stopL + 5.25%
(c)
 7.03% 11/2024 3,981  3,945  0.2  3,904  
BIO18 Borrower, LLC
One stopL + 5.25%
(c)
 6.55% 11/2024 210  210  —  206  
BIO18 Borrower, LLC(5)
One stopL + 5.25%
(c)
 
N/A(6)
 11/2024 —  (1) —  (18) 
BIOVT, LLC^*#
One stopL + 5.75%
(a)
 6.75% 01/2021 34,307  34,700  1.7  33,621  
BIOVT, LLC#~
One stopL + 5.75%
(a)
 6.75% 01/2021 2,084  2,135  0.1  2,042  
BIOVT, LLC*
One stopL + 5.75%
(a)
 6.75% 01/2021 1,956  2,004  0.1  1,917  
BIOVT, LLC
One stopL + 5.75%
(c)
 6.87% 01/2021 120  120  —  116  
BIOVT, LLC(5)
One stopL + 5.75% 
N/A(6)
 01/2021 —  —  —  (24) 
Blades Buyer, Inc.+~
Senior loanL + 4.50%
(c)(f)
 6.00% 08/2025 3,839  3,860  0.2  3,686  
Blades Buyer, Inc.
Senior loanL + 4.50%
(a)
 5.50% 08/2025 90  90  —  86  
Blades Buyer, Inc.(5)
Senior loanL + 4.50% 
N/A(6)
 08/2025 —  (6) —  (39) 
CMI Parent Inc.+~
Senior loanL + 4.25%
(c)
 5.95% 08/2025 6,667  6,805  0.3  6,333  
CMI Parent Inc.
Senior loanL + 4.25%
(a)(c)
 5.25% 08/2025 300  298  —  286  
CRH Healthcare Purchaser, Inc.+~
Senior loanL + 4.50%
(c)
 5.95% 12/2024 13,111  13,290  0.6  12,587  
CRH Healthcare Purchaser, Inc.(5)
Senior loanL + 4.50% 
N/A(6)
 12/2024 —  (1) —  (12) 
CRH Healthcare Purchaser, Inc.(5)
Senior loanL + 4.50% 
N/A(6)
 12/2024 —  (2) —  (167) 
DCA Investment Holding, LLC^*#+
One stopL + 5.25%
(d)
 6.32% 07/2021 31,571  31,913  1.5  28,414  
DCA Investment Holding, LLC^*#+!~
One stopL + 5.25%
(d)
 6.33% 07/2021 27,355  27,774  1.3  24,618  
DCA Investment Holding, LLC*#
One stopL + 5.25%
(d)
 6.32% 07/2021 8,362  8,540  0.4  7,525  
DCA Investment Holding, LLC~
One stopL + 5.25%
(d)
 6.32% 07/2021 4,054  4,175  0.2  3,649  
DCA Investment Holding, LLC~
One stopL + 5.25%
(d)
 6.32% 07/2021 3,687  3,798  0.2  3,318  
DCA Investment Holding, LLC
One stopL + 5.25%
(a)
 6.25% 07/2021 2,729  2,725  0.1  2,449  
DCA Investment Holding, LLC*~
One stopL + 5.25%
(d)
 6.32% 07/2021 2,524  2,600  0.1  2,272  
DCA Investment Holding, LLC#
One stopL + 5.25%
(d)
 6.32% 07/2021 1,256  1,276  0.1  1,131  
DCA Investment Holding, LLC*~
One stopL + 5.25%
(d)
 6.32% 07/2021 298  302  —  268  
DCA Investment Holding, LLC*~
One stopL + 5.25%
(d)
 6.32% 07/2021 94  94  —  84  
Deca Dental Management LLC^*#
One stopL + 6.00%
(c)
 7.45% 12/2021 11,231  11,475  0.5  10,109  
Deca Dental Management LLC#~
One stopL + 6.00%
(c)
 7.45% 12/2021 1,379  1,408  0.1  1,241  
Deca Dental Management LLC+~
One stopL + 6.00%
(c)
 7.45% 12/2021 994  1,016  —  895  
Deca Dental Management LLC
One stopL + 6.00%
(c)
 7.45% 12/2021 737  761  —  664  
Deca Dental Management LLC
One stopL + 6.00%
(c)
 7.45% 12/2021 100  101  —  90  
Deca Dental Management LLC
One stopL + 6.00% 
N/A(6)
 12/2021 —  —  —  —  
Elite Dental Partners LLC*#
One stopL + 5.25%
(d)
 6.32% 06/2023 14,162  14,033  0.6  11,046  
Elite Dental Partners LLC
One stopL + 5.25%
(d)
 6.32% 06/2023 1,878  1,866  0.1  1,464  
Elite Dental Partners LLC#
One stopL + 5.25%
(d)
 6.32% 06/2023 1,760  1,749  0.1  1,372  
Elite Dental Partners LLC+~
One stopL + 5.25%
(d)
 6.32% 06/2023 1,678  1,669  0.1  1,309  
Elite Dental Partners LLC#~
One stopL + 5.25%
(d)
 6.32% 06/2023 1,608  1,599  0.1  1,254  
Elite Dental Partners LLC
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
Elite Dental Partners LLC
One stopL + 5.25%
(d)
 6.32% 06/2023 $19  $14  —  %$15  
ERG Buyer, LLC*#
One stopL + 5.50%
(c)
6.95%05/202419,231  19,174  0.9  17,308  
ERG Buyer, LLC
One stopP + 4.50%
(f)
7.75%05/2024300  294  —  270  
ERG Buyer, LLC(5)
One stopL + 5.50%
N/A(6)
05/2024—  (8) —  —  
eSolutions, Inc.^*#+!~
One stopL + 6.50%
(a)
7.50%03/202273,854  74,780  3.7  72,379  
eSolutions, Inc.
One stopL + 6.50%
(a)
 7.50% 03/2022 150  150  —  148  
Excelligence Learning Corporation^#
One stopL + 6.00%
(a)(c)
 7.07% 04/2023 10,143  9,833  0.4  7,608  
Eyecare Services Partners Holdings LLC+
One stopL + 6.25%
(c)
 7.70% 05/2023 18,322  18,429  0.9  16,856  
Eyecare Services Partners Holdings LLC*
One stopL + 6.25%
(c)
 7.70% 05/2023 8,036  8,187  0.4  7,393  
Eyecare Services Partners Holdings LLC*#
One stopL + 6.25%
(c)
 7.70% 05/2023 7,038  7,178  0.3  6,475  
Eyecare Services Partners Holdings LLC*+
One stopL + 6.25%
(c)
 7.70% 05/2023 2,403  2,450  0.1  2,211  
Eyecare Services Partners Holdings LLC
One stopL + 6.25%
(c)
 7.70% 05/2023 2,088  2,120  0.1  1,925  
Eyecare Services Partners Holdings LLC*
One stopL + 6.25%
(c)
 7.70% 05/2023 1,542  1,573  0.1  1,419  
Eyecare Services Partners Holdings LLC*#
One stopL + 6.25%
(c)
 7.70% 05/2023 1,141  1,163  0.1  1,049  
Eyecare Services Partners Holdings LLC*#
One stopL + 6.25%
(c)
 7.70% 05/2023 1,004  1,025  0.1  925  
Eyecare Services Partners Holdings LLC*+
One stopL + 6.25%
(c)
 7.70% 05/2023 649  659  —  597  
Eyecare Services Partners Holdings LLC
One stopL + 6.25%
(c)
 7.87% 05/2023 400  398  —  368  
FYI Optical Acquisitions, Inc. & FYI USA, Inc.~(8)(9)(14)
One stopL + 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 stopL + 4.50% 
N/A(6)
 03/2027 —  (3) —  (18) 
FYI Optical Acquisitions, Inc. & FYI USA, Inc.(5)(8)(14)
One stopL + 4.50% 
N/A(6)
 03/2027 —  (1) —  (8) 
G & H Wire Company, Inc.^#&
One stopL + 5.50%
(a)
 6.50% 09/2023 11,207  11,206  0.5  10,311  
G & H Wire Company, Inc.
One stopL + 5.50%
(c)
 6.56% 09/2022 140  140  —  128  
Immucor, Inc.+
Senior loanL + 5.00%
(c)
 6.45% 06/2021 3,576  3,631  0.2  3,138  
Joerns Healthcare, LLC^*%
One stopL + 6.00%
(c)
 7.12% 08/2024 1,873  1,820  0.1  1,797  
Joerns Healthcare, LLC^*%
One stopL + 6.00%
(c)
 7.12% 08/2024 1,800  1,769  0.1  1,728  
Katena Holdings, Inc.^#
One stopL + 6.00%
(d)
 7.07% 06/2021 12,796  12,912  0.6  12,028  
Katena Holdings, Inc.^#
One stopL + 6.00%
(d)
 7.07% 06/2021 1,250  1,261  0.1  1,175  
Katena Holdings, Inc.+
One stopL + 6.00%
(d)
 7.07% 06/2021 934  927  —  878  
Katena Holdings, Inc.#
One stopL + 6.00%
(d)
 7.07% 06/2021 855  863  —  805  
Katena Holdings, Inc.
One stopL + 6.00%
(a)(f)
 7.36% 06/2021 200  201  —  188  
Krueger-Gilbert Health Physics, LLC!~
Senior loanL + 5.25%
(c)
 6.70% 05/2025 2,371  2,357  0.1  2,205  
Krueger-Gilbert Health Physics, LLC!
Senior loanL + 5.25%
(c)
 6.70% 05/2025 1,119  1,162  0.1  1,041  
Krueger-Gilbert Health Physics, LLC
Senior loanL + 5.25%
(c)
 6.70% 05/2025 420  418  —  391  
Krueger-Gilbert Health Physics, LLC
Senior loanL + 5.25%
(c)
 6.48% 05/2025 50  50  —  44  
Lombart Brothers, Inc.^*#~
One stopL + 6.25%
(c)
 7.70% 04/2023 29,106  29,481  1.4  28,230  
Lombart Brothers, Inc.^#(8)(9)
One stopL + 6.25%
(c)
 7.70% 04/2023 3,133  3,174  0.2  3,040  
Lombart Brothers, Inc.
One stopL + 6.25%
(c)
 7.25% 04/2023 280  279  —  272  
Lombart Brothers, Inc.(8)(9)
One stopL + 6.25%
(a)(c)
 7.25% 04/2023 50  49  —  48  
MD Now Holdings, Inc.+!
One stopL + 5.00%
(d)
 6.07% 08/2024 14,616  14,792  0.7  14,032  
MD Now Holdings, Inc.
One stopL + 5.00%
(d)
 6.07% 08/2024 622  621  —  536  
MD Now Holdings, Inc.
One stopL + 5.00%
(c)
 6.45% 08/2024 300  299  —  288  
MWD Management, LLC & MWD Services, Inc.#+
One stopL + 5.25%
(c)
 6.70% 06/2023 7,053  7,040  0.3  6,488  
MWD Management, LLC & MWD Services, Inc.^#
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
MWD Management, LLC & MWD Services, Inc.
One stopL + 5.25%
(c)
 6.36% 06/2022 $160  $159  —  %$148  
MWD Management, LLC & MWD Services, Inc.(5)
One stopL + 5.25% 
N/A(6)
 06/2023 —  —  —  (12) 
Oliver Street Dermatology Holdings, LLC#(7)
One stopL + 6.25%
(c)
 7.70% 05/2022 19,295  17,731  0.5  10,062  
Oliver Street Dermatology Holdings, LLC*#(7)
One stopL + 6.25%
(c)
 8.19% 05/2022 2,239  1,926  0.1  1,168  
Oliver Street Dermatology Holdings, LLC(7)
One stopL + 6.25%
(c)
 8.19% 05/2022 2,122  1,941  0.1  1,106  
Oliver Street Dermatology Holdings, LLC^+(7)
One stopL + 6.25%
(c)
8.19%05/20221,606  1,382  —  838  
Oliver Street Dermatology Holdings, LLC*+(7)
One stopL + 6.25%
(c)
7.70%05/20221,419  1,220  —  740  
Oliver Street Dermatology Holdings, LLC*+(7)
One stopL + 6.25%
(c)
7.70%05/20221,235  1,063  —  645  
Oliver Street Dermatology Holdings, LLC^+(7)
One stopL + 6.25%
(c)
8.19%05/2022962  828  —  501  
Oliver Street Dermatology Holdings, LLC*+(7)
One stopL + 6.25%
(c)
 7.70% 05/2022 834  717  —  435  
Oliver Street Dermatology Holdings, LLC+(7)
One stopL + 6.25%
(c)
 8.19% 05/2022 515  442  —  268  
Oliver Street Dermatology Holdings, LLC(7)
One stopL + 6.25%
(c)(f)
 8.19% 05/2022 290  267  —  152  
Oliver Street Dermatology Holdings, LLC^#(7)
One stopL + 6.25%
(c)
 8.19% 05/2022 98  89  —  50  
Oliver Street Dermatology Holdings, LLC*#(7)
One stopL + 6.25%
(c)
 7.70% 05/2022 88  81  —  46  
Oliver Street Dermatology Holdings, LLC^#(7)
One stopL + 6.25%
(c)
 7.70% 05/2022 70  63  —  36  
Oliver Street Dermatology Holdings, LLC^#(7)
One stopL + 6.25%
(c)
 7.70% 05/2022 62  59  —  34  
ONsite Mammography, LLC~
One stopL + 6.00%
(d)
 7.07% 11/2023 7,688  7,730  0.4  7,379  
ONsite Mammography, LLC
One stopL + 6.00%
(a)
 7.00% 11/2023 80  82  —  76  
ONsite Mammography, LLC
One stopL + 6.00%
(a)(d)
 7.04% 11/2023 29  28  —  28  
Pinnacle Treatment Centers, Inc.#
One stopL + 6.25%
(c)
 8.03% 01/2023 19,230  19,430  1.0  18,653  
Pinnacle Treatment Centers, Inc.*
One stopL + 6.25%
(c)
 8.03% 01/2023 7,832  7,759  0.4  7,597  
Pinnacle Treatment Centers, Inc.#
One stopL + 6.25%
(c)
 8.03% 01/2023 1,578  1,585  0.1  1,531  
Pinnacle Treatment Centers, Inc.+~
One stopL + 6.25%
(c)
 8.03% 01/2023 713  721  —  692  
Pinnacle Treatment Centers, Inc.
One stopP + 5.00%
(c)(f)
 8.23% 01/2023 231  231  —  224  
Pinnacle Treatment Centers, Inc.
One stopL + 6.25%
(c)
 8.03% 01/2023 188  190  —  182  
Pinnacle Treatment Centers, Inc.^
One stopL + 6.25%
(c)
 8.03% 01/2023 108  110  —  104  
Pinnacle Treatment Centers, Inc.(5)
One stopL + 6.25% 
N/A(6)
 01/2023 —  (1) —  —  
PPT Management Holdings, LLC+
One stopL + 6.75%
(a)
 7.58% cash/0.75% PIK 12/2022 24,518  22,615  1.1  20,833  
PPT Management Holdings, LLC
One stopL + 6.75%
(a)(c)
 7.02% cash/0.75% PIK 12/2022 416  388  —  354  
PPT Management Holdings, LLC
One stopL + 6.75%
(a)
 7.58% cash/0.75% PIK 12/2022 302  288  —  256  
PPT Management Holdings, LLC
One stopL + 6.75%
(a)
 7.58% cash/0.75% PIK 12/2022 178  170  —  152  
PPT Management Holdings, LLC
One stopL + 6.75%
(a)
 7.58% cash/0.75% PIK 12/2022 86  77  —  74  
Pyramid Healthcare, Inc.*+%&
One stopL + 6.50%
(c)
 8.11% 08/2020 15,061  15,059  0.8  14,760  
Pyramid Healthcare, Inc.
One stopL + 6.50%
(c)(f)
 7.99% 08/2020 719  719  —  704  
Pyramid Healthcare, Inc.
One stopL + 6.50%
(c)
 8.24% 08/2020 463  463  —  454  
Pyramid Healthcare, Inc.
One stopL + 6.50%
(c)
 8.24% 08/2020 335  340  —  328  
Pyramid Healthcare, Inc.%&
One stopL + 6.50%
(c)
 8.11% 08/2020 292  292  —  286  
Pyramid Healthcare, Inc.
One stopL + 6.50%
(c)
 8.08% 08/2020 112  112  —  110  
Pyramid Healthcare, Inc.
One stopL + 6.50%
(a)(c)
 7.57% 08/2020 45  45  —  44  
Riverchase MSO, LLC*#
Senior loanL + 5.25%
(c)
 6.70% 10/2022 9,670  9,821  0.5  8,800  
Riverchase MSO, LLC
Senior loanP + 4.25%
(c)(f)
 7.24% 10/2022 130  130  —  118  
RXH Buyer Corporation^*#!
One stopL + 5.75%
(c)
 7.20% 09/2021 27,668  27,948  1.4  27,116  
RXH Buyer Corporation*#
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
RXH Buyer Corporation
One stopL + 5.75%
(c)
 7.20% 09/2021 $400  $402  —  %$392  
Sage Dental Management, LLC(7)%
One stopL + 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 stopL + 6.25%
(c)
 8.16% 12/2020 70  64  —  49  
Sage Dental Management, LLC(7)
One stopL + 6.25%
(c)
 8.16% 12/2020 63  58  —  44  
Sage Dental Management, LLC(7)%
One stopL + 6.25%
(c)
 8.16% 12/2020 45  41  —  31  
SLMP, LLC^#
One stopL + 6.00%
(d)
 7.07% 05/2023 12,012  12,101  0.6  11,771  
SLMP, LLC^#
One stopL + 6.00%
(d)
 7.07% 05/2023 5,782  5,996  0.3  5,667  
SLMP, LLC
One stopL + 6.00%
(d)
 7.07% 05/2023 1,503  1,499  0.1  1,467  
SLMP, LLC
Subordinated debtN/A7.50% PIK05/2027223  229  —  223  
SLMP, LLC
One stopP + 5.00%
(f)
8.25%05/2023100  99  —  96  
Summit Behavioral Healthcare, LLC^#&
Senior loanL + 4.75%
(c)
6.36%10/202320,703  20,438  1.0  19,047  
Summit Behavioral Healthcare, LLC
Senior loanL + 4.75%
(c)
6.36%10/2023432  434  —  398  
Summit Behavioral Healthcare, LLC
Senior loanL + 4.75%
(c)
6.31%10/2023300  296  —  276  
WHCG Management, LLC*#%&
Senior loanL + 4.75%
(d)
 5.82% 03/2023 16,151  16,265  0.8  15,182  
WHCG Management, LLC
Senior loanL + 4.75%
(d)
 5.82% 03/2023 5,655  5,610  0.3  5,315  
WHCG Management, LLC
Senior loanL + 4.75%
(d)
 5.82% 03/2023 1,994  1,986  0.1  1,874  
WHCG Management, LLC
Senior loanL + 4.75%
(d)
 5.82% 03/2023 340  338  —  320  
WHCG Management, LLC
Senior loanP + 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 loanL + 4.50%
(c)
 5.57% 02/2022 6,229  6,246  0.3  5,793  
CST Buyer Company^+~
One stopL + 5.75%
(d)
 6.82% 10/2025 10,974  10,861  0.5  10,316  
CST Buyer Company
One stopL + 5.75%
(d)
 6.82% 10/2025 38  38  —  35  
Plano Molding Company, LLC^+
One stopL + 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 stopL + 5.25%
(a)
 6.25% 07/2024 8,502  8,442  0.3  6,376  
Davidson Hotel Company, LLC
One stopL + 5.25%
(a)
 6.25% 07/2024 1,075  1,075  0.1  806  
Davidson Hotel Company, LLC
One stopL + 5.25%
(a)
 6.25% 07/2024 100  100  —  76  
Davidson Hotel Company, LLC(5)
One stopL + 5.25% 
N/A(6)
 07/2024 —  (12) —  —  
9,677  9,605  0.4  7,258  
Insurance
Captive Resources Midco, LLC^*#+~
One stopL + 6.00%
(a)
 7.00% 05/2025 54,631  54,828  2.8  54,631  
Captive Resources Midco, LLC
One stopL + 6.00%
(c)
 7.00% 05/2025 1,727  1,705  0.1  1,727  
Captive Resources Midco, LLC#
One stopL + 6.00%
(a)
 7.00% 05/2025 1,447  1,433  0.1  1,447  
Integrity Marketing Acquisition, LLC+~
Senior loanL + 5.75%
(c)
 7.39% 08/2025 2,483  2,484  0.1  2,433  
Integrity Marketing Acquisition, LLC
Senior loanL + 5.75%
(c)
 7.59% 08/2025 793  789  —  777  
Integrity Marketing Acquisition, LLC
Senior loanL + 5.75%
(c)
 7.47% 08/2025 480  477  —  470  
Integrity Marketing Acquisition, LLC
Senior loanL + 5.75%
(c)
 7.26% 08/2025 35  34  —  31  
Integrity Marketing Acquisition, LLC
Senior loanL + 5.75%
(c)
 6.97% 08/2025 30  28  —  28  
J.S. Held Holdings, LLC#+~
One stopL + 6.00%
(c)(d)
 7.07% 07/2025 3,631  3,635  0.2  3,342  
J.S. Held Holdings, LLC
One stopL + 6.00%
(c)
 7.22% 07/2025 232  226  —  200  
J.S. Held Holdings, LLC(5)
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Insurance - (continued)
Orchid Underwriters Agency, LLC+~
Senior loanL + 4.50%
(c)
 5.57% 12/2024 $4,209  $4,268  0.2  %$3,873  
Orchid Underwriters Agency, LLC
Senior loanL + 4.50%
(c)
 5.62% 12/2024 38  38  —  36  
Orchid Underwriters Agency, LLC(5)
Senior loanL + 4.50% 
N/A(6)
 12/2024 —  (1) —  (80) 
RSC Acquisition, Inc.+~
One stopL + 5.50%
(c)
 7.26% 10/2026 24,088  23,633  1.2  23,124  
RSC Acquisition, Inc.(5)
One stopL + 5.50% 
N/A(6)
 10/2026 —  (1) —  (3) 
RSC Acquisition, Inc.(5)
One stopL + 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 loanL + 4.00%
(c)
 5.45% 07/2025 2,009  2,022  0.1  1,768  
CR Fitness Holdings, LLC
Senior loanL + 4.00%
(c)(f)
 5.00% 07/2025 269  263  —  237  
CR Fitness Holdings, LLC
Senior loanL + 4.00%
(c)(f)
 5.18% 07/2025 74  74  —  66  
EOS Fitness Opco Holdings, LLC*#
One stopL + 4.75%
(c)
 6.20% 01/2025 8,719  8,846  0.4  8,022  
EOS Fitness Opco Holdings, LLC
One stopL + 4.75%
(c)
6.20%01/2025667  679  —  594  
EOS Fitness Opco Holdings, LLC
One stopP + 3.75%
(f)
7.00%01/2025120  120  —  110  
PADI Holdco, Inc.*#
One stopL + 5.50%
(c)
7.12%04/202421,942  22,179  1.0  20,186  
PADI Holdco, Inc.+~(8)(9)
One stopE + 5.75%
(g)
5.50%04/202420,782  21,132  1.0  18,479  
PADI Holdco, Inc.~
One stopL + 5.50%
(c)
6.50%04/2024801  794  —  747  
PADI Holdco, Inc.
One stopL + 5.50%
(c)
 6.77% 04/2023 298  299  —  274  
PADI Holdco, Inc.
One stopL + 5.50%
(c)
 6.97% 04/2024 166  164  —  154  
Planet Fit Indy 10 LLC+
One stopL + 5.25%
(c)
 6.70% 07/2025 17,473  17,369  0.8  16,250  
Planet Fit Indy 10 LLC#
One stopL + 5.25%
(c)
 6.99% 07/2025 2,331  2,385  0.1  2,168  
Planet Fit Indy 10 LLC#
One stopL + 5.25%
(c)
 6.70% 07/2025 1,265  1,258  0.1  1,177  
Planet Fit Indy 10 LLC
One stopL + 5.25%
(c)
 6.45% 07/2025 200  200  —  186  
Self Esteem Brands, LLC^*#%&
Senior loanL + 4.25%
(d)
 5.32% 02/2022 45,841  46,319  2.2  42,632  
Self Esteem Brands, LLC
Senior loanP + 3.25%
(f)
 6.50% 02/2022 2,338  2,334  0.1  2,174  
Sunshine Sub, LLC#~
One stopL + 4.75%
(a)
 5.75% 05/2024 12,990  13,104  0.6  11,951  
Sunshine Sub, LLC#
One stopL + 4.75%
(a)
 5.75% 05/2024 5,682  5,892  0.3  5,228  
Sunshine Sub, LLC
One stopL + 4.75%
(a)
 5.75% 05/2024 200  199  —  184  
Teaching Company, The*#
One stopL + 4.75%
(c)
 6.46% 07/2023 17,878  18,087  0.9  16,448  
Teaching Company, The
One stopL + 4.75%
(c)(d)(f)
 6.33% 07/2023 190  190  —  174  
Titan Fitness, LLC*#+
One stopL + 4.75%
(c)
 6.50% 02/2025 30,471  30,961  1.4  28,033  
Titan Fitness, LLC
One stopL + 4.75%
(c)
 6.38% 02/2025 1,899  1,897  0.1  1,747  
Titan Fitness, LLC
One stopL + 4.75%
(c)(f)
 6.00% 02/2025 474  472  —  434  
WBZ Investment LLC#
One stopL + 5.50%
(c)(d)
 6.95% 09/2024 8,483  8,547  0.4  7,634  
WBZ Investment LLC
One stopL + 5.50%
(a)(d)
 6.50% 09/2024 1,215  1,206  0.1  1,094  
WBZ Investment LLC
One stopL + 5.50%
(c)
 6.95% 09/2024 844  877  0.1  760  
WBZ Investment LLC
One stopL + 5.50%
(c)
 6.95% 09/2024 432  448  —  389  
WBZ Investment LLC
One stopL + 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 loanL + 4.25%
(a)
 5.24% 07/2025 36,763  37,297  1.8  34,156  
Drilling Info Holdings, Inc.~
Senior loanL + 4.50%
(a)
 5.49% 07/2025 17,429  16,958  0.8  16,383  
Drilling Info Holdings, Inc.
Senior loanL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Oil and Gas - (continued)
Drilling Info Holdings, Inc.
Senior loanL + 4.50%
(a)
 5.40%  07/2023 $64  $61  —  %$59  
Drilling Info Holdings, Inc.(5)
Senior loanL + 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 stopL + 5.50%
(d)
 6.57% 11/2023 10,428  10,558  0.5  9,384  
Georgica Pine Clothiers, LLC*#
One stopL + 5.50%
(d)
 6.59% 11/2023 6,537  6,625  0.3  5,882  
Georgica Pine Clothiers, LLC+
One stopL + 5.50%
(d)
 6.57% 11/2023 1,011  1,002  0.1  910  
Georgica Pine Clothiers, LLC^#
One stopL + 5.50%
(d)
 6.57% 11/2023 909  923  0.1  818  
Georgica Pine Clothiers, LLC*#
One stopL + 5.50%
(d)
 6.57% 11/2023 638  648  —  575  
Georgica Pine Clothiers, LLC
One stopL + 5.50%
(d)
 6.69% 11/2023 236  236  —  212  
IMPLUS Footwear, LLC+~
One stopL + 6.25%
(c)
 7.70% 04/2024 30,316  30,772  1.4  27,285  
IMPLUS Footwear, LLC+~
One stopL + 6.25%
(c)
 7.70% 04/2024 5,178  5,255  0.2  4,660  
IMPLUS Footwear, LLC*
One stopL + 6.25%
(c)
 7.70% 04/2024 746  774  —  672  
Orthotics Holdings, Inc.*#
One stopL + 6.00%
(e)
 7.00% 05/2020 11,676  11,679  0.5  10,509  
Orthotics Holdings, Inc.*#(8)(9)
One stopL + 6.00%
(e)
 7.00% 05/2020 1,914  1,915  0.1  1,723  
Orthotics Holdings, Inc.One stopL + 6.00% 
N/A(6)
 05/2020 —  —  —  —  
WU Holdco, Inc. #+~
One stopL + 5.50%
(c)
 6.99% 03/2026 3,445  3,528  0.2  3,376  
WU Holdco, Inc.
One stopL + 5.50%
(c)
7.19%03/2026393  394  —  384  
WU Holdco, Inc.
One stopL + 5.50%
(c)
6.72%03/202540  40  —  38  
73,467  74,349  3.4  66,428  
Personal, Food and Miscellaneous Services
Blue River Pet Care, LLC#+
One stopL + 5.00%
(d)
 6.07% 07/2026 27,830  27,886  1.3  25,882  
Blue River Pet Care, LLC
One stopL + 5.00%
(c)(d)
 6.06% 08/2025 276  272  —  248  
Blue River Pet Care, LLC(5)
One stopL + 5.00% 
N/A(6)
 07/2026 —  (97) —  (742) 
Captain D's, LLC^#%&
Senior loanL + 4.50%
(c)(d)
 5.50% 12/2023 14,292  14,343  0.7  12,864  
Captain D's, LLC
Senior loanP + 3.50%
(c)(f)
 6.74% 12/2023 120  121  —  104  
Encorevet Group LLC
Senior loanL + 5.00%
(c)
 6.45% 11/2024 113  113  —  105  
Encorevet Group LLC
Senior loanL + 5.00%
(c)
 6.58% 11/2024 58  57  —  54  
Encorevet Group LLC
Senior loanL + 5.00%
(c)
 6.23% 11/2024 25  25  —  22  
Encorevet Group LLC
Senior loanL + 5.00%
(c)
 6.45% 11/2024 10  10  —  9  
Encorevet Group LLC(5)
Senior loanL + 5.00% 
N/A(6)
 11/2024 —  (3) —  (22) 
Imperial Optical Midco Inc.~
One stopL + 5.25%
(b)
 6.73% 08/2023 3,631  3,685  0.2  3,450  
Imperial Optical Midco Inc.*
One stopL + 5.25%
(b)
 6.51% 08/2023 2,832  2,808  0.1  2,690  
Imperial Optical Midco Inc.
One stopL + 5.25%
(b)
 6.62% 08/2023 1,925  1,978  0.1  1,829  
Imperial Optical Midco Inc.
One stopL + 5.25%
(b)
 6.51% 08/2023 1,253  1,288  0.1  1,191  
Imperial Optical Midco Inc.*
One stopL + 5.25%
(b)
 6.87% 08/2023 1,141  1,172  0.1  1,084  
Imperial Optical Midco Inc.
One stopL + 5.25%
(b)
 6.60% 08/2023 331  328  —  314  
Imperial Optical Midco Inc.
One stopL + 5.25%
(b)
 6.51% 08/2023 241  239  —  229  
Imperial Optical Midco Inc.
One stopL + 5.25%
(b)
 6.60% 08/2023 191  189  —  181  
Imperial Optical Midco Inc.
One stopL + 5.25%
(b)
 6.88% 08/2023 134  133  —  128  
Imperial Optical Midco Inc.
One stopL + 5.25%
(b)
 6.51% 08/2023 130  129  —  124  
Imperial Optical Midco Inc.
One stopL + 5.25%
(b)
 6.56% 08/2023 97  96  —  92  
Imperial Optical Midco Inc.
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Personal, Food and Miscellaneous Services
Imperial Optical Midco Inc.
One stopL + 5.25%
(b)(c)
 6.26% 08/2023 $36  $35  —  %$34  
Imperial Optical Midco Inc.
One stopL + 5.25% 
N/A(6)
 08/2023 —  —  —  —  
Imperial Optical Midco Inc.(5)
One stopL + 5.25% 
N/A(6)
 08/2023 —  (5) —  —  
Midwest Veterinary Partners, LLC+
One stopL + 6.00%
(d)
 7.07% 07/2025 4,296  4,223  0.2  4,166  
Midwest Veterinary Partners, LLC
One stopL + 4.75%
(d)
 5.82% 07/2025 1,030  1,021  0.1  999  
Midwest Veterinary Partners, LLC
One stopL + 6.00%
(a)
 7.00% 07/2025 814  776  —  790  
Midwest Veterinary Partners, LLC
One stopL + 4.75%
(d)
 5.82% 07/2025 200  200  —  194  
NVA Holdings, Inc.~
Senior loanL + 3.50%
(c)
 4.95% 02/2026 2,951  2,921  0.1  2,715  
PPV Intermediate Holdings II, LLC
One stopL + 5.00%
(c)(d)
 7.33% 05/2023 4,946  4,958  0.2  4,596  
PPV Intermediate Holdings II, LLC
One stopP + 4.00%
(d)(f)
 6.75% 05/2023 100  100  —  96  
PPV Intermediate Holdings II, LLC
One stopN/A 7.90% PIK 05/2023 22  23  —  22  
Ruby Slipper Cafe LLC, The*
One stopL + 7.50%
(c)
 8.95% 01/2023 2,055  2,044  0.1  1,951  
Ruby Slipper Cafe LLC, The
One stopL + 7.50%
(c)
 8.62% 01/2023 302  319  —  287  
Ruby Slipper Cafe LLC, The
One stopL + 7.50%
(c)
 8.70% 01/2023 30  30  —  29  
Southern Veterinary Partners, LLC*#~
One stopL + 5.50%
(d)
 6.57% 05/2025 26,728  27,733  1.3  25,660  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(d)
 6.57% 05/2025 211  209  —  203  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(c)
 6.50% 05/2023 200  199  —  192  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(d)
 6.57% 05/2025 192  190  —  184  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(d)
 6.57% 05/2025 126  125  —  121  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(d)
 6.57% 05/2025 121  120  —  116  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(d)
 6.57% 05/2025 120  119  —  115  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(d)
6.57%05/2025114  113  —  109  
Southern Veterinary Partners, LLC
One stopL + 5.50%
(d)
6.57%05/2025112  111  —  107  
Southern Veterinary Partners, LLC(5)
One stopL + 5.50%
N/A(6)
05/2025—  (2) —  —  
Southern Veterinary Partners, LLC(5)
One stopL + 5.50%
N/A(6)
05/2025—  (25) —  (80) 
Veterinary Specialists of North America, LLC*#!
Senior loanL + 4.25%
(a)
 5.24% 04/2025 41,864  43,434  2.0  39,770  
Veterinary Specialists of North America, LLC
Senior loanL + 4.25%
(a)
 5.18% 04/2025 3,348  3,343  0.2  2,754  
Veterinary Specialists of North America, LLC#
Senior loanL + 4.25%
(a)
 5.24% 04/2025 2,886  2,863  0.1  2,741  
Veterinary Specialists of North America, LLC*
Senior loanL + 4.25%
(a)
 5.24% 04/2025 1,452  1,508  0.1  1,379  
Veterinary Specialists of North America, LLC
Senior loanL + 4.25%
(a)
 5.05% 04/2025 835  832  0.1  793  
Wetzel's Pretzels, LLC*#
One stopL + 6.75%
(c)
 8.20% 09/2021 17,027  17,242  0.8  15,325  
Wetzel's Pretzels, LLC
One stopL + 6.75%
(c)
 7.93% 09/2021 100  101  —  90  
166,931  169,715  7.9  155,373  
Printing and Publishing
Brandmuscle, Inc.%&
Senior loanL + 4.75%
(d)
 5.82% 12/2021 8,115  8,110  0.4  7,379  
Brandmuscle, Inc.^#
Senior loanL + 5.00%
(d)
 6.07% 12/2021 1,132  1,151  0.1  1,037  
Brandmuscle, Inc.
Senior loanL + 4.75%
(d)
 5.82% 12/2021 34  34  —  26  
Messenger, LLC+~
One stopL + 6.00%
(a)(c)(f)
 7.16% 08/2023 9,098  9,196  0.4  8,462  
Messenger, LLC
One stopP + 5.00%
(f)
 8.25% 08/2023 32  32  —  28  
Messenger, LLC(5)
One stopL + 6.00% 
N/A(6)
 08/2023 —  (2) —  —  
18,411  18,521  0.9  16,932  
Retail Stores
2nd Ave. LLC
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Retail Stores - (continued)
2nd Ave. LLC
One stopL + 5.50%
(a)(c)
 6.65% 09/2025 $50  $50  —  %$40  
Batteries Plus Holding Corporation#
One stopL + 6.75%
(a)(f)
 7.75% 07/2022 21,980  22,276  1.0  20,222  
Batteries Plus Holding Corporation
One stopP + 5.75%
(f)
 9.00% 07/2022 250  249  —  226  
Boot Barn, Inc.+~%&
Senior loanL + 4.50%
(c)
 5.77% 06/2023 16,777  16,928  0.8  15,770  
Cycle Gear, Inc.^#+~
One stopL + 5.00%
(c)
 6.45% 01/2024 23,953  23,963  1.1  21,559  
DTLR, Inc.^*#+
One stopL + 6.50%
(c)
 8.28% 08/2022 41,599  42,155  2.0  39,519  
Elite Sportswear, L.P.&
Senior loanL + 6.25%
(c)
 7.70% 12/2021 9,199  8,988  0.4  7,635  
Elite Sportswear, L.P.&
Senior loanL + 6.25%
(c)
 7.70% 12/2021 3,698  3,616  0.2  3,069  
Elite Sportswear, L.P.&
Senior loanL + 6.25%
(c)
 7.70% 12/2021 1,903  1,861  0.1  1,580  
Elite Sportswear, L.P.
Senior loanL + 6.25%
(c)(d)(f)
 8.09% 12/2021 1,142  1,116  —  943  
Elite Sportswear, L.P.*&
Senior loanL + 6.25%
(c)
 7.70% 12/2021 632  619  —  524  
Elite Sportswear, L.P.&
Senior loanL + 6.25%
(c)
 7.70% 12/2021 289  282  —  240  
Elite Sportswear, L.P.*&
Senior loanL + 6.25%
(c)
 7.70% 12/2021 276  271  —  229  
Elite Sportswear, L.P.
Senior loanP + 5.00%
(c)(d)(f)
 8.10% 12/2021 40  39  —  34  
Feeders Supply Company, LLC#
One stopL + 5.75%
(c)
 7.20% 04/2021 8,640  8,747  0.4  8,209  
Feeders Supply Company, LLC
Subordinated debtN/A 12.50% cash/7.00% PIK 04/2021 147  149  —  139  
Feeders Supply Company, LLC
One stopL + 5.75%
(a)
 6.75% 04/2021 50  50  —  46  
Jet Equipment & Tools Ltd.+~(8)(9)(12)
One stopL + 5.75%
(a)
 7.41% 11/2024 18,080  18,391  0.8  15,571  
Jet Equipment & Tools Ltd.*#(8)(12)
One stopL + 5.75%
(a)
 6.75% 11/2024 12,427  12,695  0.6  11,433  
Jet Equipment & Tools Ltd.+~(8)(12)
One stopL + 5.75%
(a)
 6.75% 11/2024 4,328  4,406  0.2  3,982  
Jet Equipment & Tools Ltd.~(8)(12)
One stopL + 5.75%
(a)
 6.75% 11/2024 1,589  1,575  0.1  1,462  
Jet Equipment & Tools Ltd.(5)(8)(9)(12)
One stopL + 5.75% 
N/A(6)
 11/2024 —  (1) —  (22) 
Mills Fleet Farm Group LLC^*#+!~&
One stopL + 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 stopL + 5.50%
(c)
 7.41% 07/2022 46,881  47,925  2.3  44,068  
Pet Holdings ULC(8)(12)
One stopP + 4.50%
(f)
 7.75% 07/2022 300  299  —  282  
Pet Holdings ULC^*#+(8)(12)
One stopL + 5.50%
(c)
7.41%07/2022242  244  —  226  
Pet Supplies Plus, LLC*+
Senior loanL + 4.50%
(b)
6.16%12/202414,253  14,515  0.7  13,541  
Pet Supplies Plus, LLC
Senior loanL + 4.50%
(b)
5.50%12/2023224  223  —  212  
PetPeople Enterprises, LLC^#
One stopL + 5.75%
(d)
6.82%09/20235,380  5,437  0.3  4,949  
PetPeople Enterprises, LLC#
One stopL + 5.75%
(a)(d)
 6.79% 09/2023 1,826  1,855  0.1  1,680  
PetPeople Enterprises, LLC
One stopL + 5.75%
(a)(c)(d)
 6.77% 09/2023 100  101  —  92  
Sola Franchise, LLC and Sola Salon Studios, LLC#
One stopL + 5.25%
(d)
 6.32% 10/2024 6,998  7,017  0.3  6,298  
Sola Franchise, LLC and Sola Salon Studios, LLC#
One stopL + 5.25%
(d)
 6.32% 10/2024 1,717  1,782  0.1  1,545  
Sola Franchise, LLC and Sola Salon Studios, LLC
One stopL + 5.25%
(c)(f)
 6.84% 10/2024 86  85  —  76  
Sola Franchise, LLC and Sola Salon Studios, LLC(5)
One stopL + 5.25% 
N/A(6)
 10/2024 —  (1) —  (217) 
Vermont Aus Pty Ltd!~(8)(9)(11)
One stopL + 5.25% 5.84% 12/2024 2,199  2,221  0.1  1,838  
Vermont Aus Pty Ltd(8)(9)(11)
One stopL + 5.25% 5.84% 12/2024 41  42  —  17  
303,089  305,632  14.0  274,140  
Telecommunications
NetMotion Wireless Holdings, Inc.^*#
One stopL + 5.75%
(c)
 7.20% 10/2021 11,059  11,214  0.6  10,838  
NetMotion Wireless Holdings, Inc.(5)
One stopL + 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 CostPercentage
of Net
Assets
Fair
Value (4)
Textiles and Leather
SHO Holding I Corporation!~
Senior loanL + 5.00%
(c)
 6.78% 10/2022 $4,045  $4,034  0.1  %$3,641  
SHO Holding I Corporation
Senior loanL + 4.00%
(a)(c)
 5.73% 10/2022 48  46  —  48  
SHO Holding I Corporation
Senior loanL + 4.00%
(a)(c)
 5.00% 10/2021 28  27  —  16  
4,121.0  $4,107  0.1  3,705  
Utilities
Arcos, LLC#~
One stopL + 5.25%
(c)
 6.70% 02/2021 14,592  14,783  0.7  14,300  
Arcos, LLC(5)
One stopL + 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 stockN/AN/AN/A—  75  —  505  
Cafe Rio Holding, Inc.
Common StockN/AN/AN/A5  603  —  594  
Global ID Corporation
LLC interestN/AN/AN/A5  603  0.1  723  
Hopdoddy Holdings, LLC
LLC unitsN/AN/AN/A44  217  —  79  
Hopdoddy Holdings, LLC
LLC unitsN/AN/AN/A20  61  —  23  
Mendocino Farms, LLC
Common StockN/AN/AN/A169  770  —  714  
Purfoods, LLC
LLC interestN/AN/AN/A736  1,222  0.1  2,252  
Rubio's Restaurants, Inc.
Preferred stockN/AN/AN/A2  945  —  —  
SSRG Holdings, LLC
LLC unitsN/AN/AN/A6  61  —  43  
Wood Fired Holding Corp.
LLC unitsN/AN/AN/A437  444  —  345  
Wood Fired Holding Corp.
LLC unitsN/AN/AN/A437  —  —  —  
5,700  0.3  5,919  
Buildings and Real Estate        
Brooks Equipment Company, LLC
Common StockN/AN/AN/A10  1,021  0.1  1,940  
Groundworks LLC
LLC unitsN/AN/AN/A—  121  —  85  
Paradigm DKD Group, LLC#+!~%
Preferred stockN/AN/AN/A354  115  —  —  
Paradigm DKD Group, LLC#+!~%
LLC unitsN/AN/AN/A71  —  —  —  
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 CostPercentage
of Net
Assets
Fair
Value (4)
Buildings and Real Estate - (continued)
Paradigm DKD Group, LLC#+!~%
LLC unitsN/AN/AN/A2,004  $—  —  %$—  
1,257  0.1  2,025  
Chemicals, Plastics and Rubber
Flexan, LLC
Preferred stockN/AN/AN/A—  137  —  113  
Flexan, LLC
LLC interestN/AN/AN/A1  —  —  —  
Inhance Technologies Holdings LLC
LLC unitsN/AN/AN/A—  124  —  26  
261  —  139  
Diversified/Conglomerate Manufacturing
Inventus Power, Inc.
Preferred stockN/AN/AN/A1  372  —  14  
Inventus Power, Inc.
LLC unitsN/AN/AN/A—  88  —  114  
Inventus Power, Inc.
Preferred stockN/AN/AN/A—  20  —  38  
Inventus Power, Inc.
Common StockN/AN/AN/A1  —  —  —  
Reladyne, Inc.
LP unitsN/AN/AN/A1  931  —  343  
1,411  —  509  
Diversified/Conglomerate Service
Accela, Inc.
LLC unitsN/AN/AN/A670  418  —  111  
Agility Recovery Solutions Inc.
LLC unitsN/AN/AN/A97  604  0.1  681  
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.
Preferred stockN/AN/AN/A587  462  —  462  
Astute Holdings, Inc.
LP interestN/AN/AN/A—  294  —  320  
Calabrio, Inc.
Common StockN/AN/AN/A26  205  —  224  
Centrify Corporation
LP interestN/AN/AN/A1  691  —  221  
Centrify Corporation
LP interestN/AN/AN/A263  —  —  —  
Cloudbees, Inc.
Preferred stockN/AN/AN/A71  466  —  355  
Cloudbees, Inc.
WarrantN/AN/AN/A93  181  —  192  
Confluence Technologies, Inc.
LLC interestN/AN/AN/A3  412  —  498  
Connexin Software, Inc.
LLC interestN/AN/AN/A154  192  —  182  
Convercent, Inc.
WarrantN/AN/AN/A325  63  —  94  
Digital Guardian, Inc.
Preferred stockN/AN/AN/A356  434  —  331  
Digital Guardian, Inc.
WarrantN/AN/AN/A122  225  —  209  
Digital Guardian, Inc.
Preferred stockN/AN/AN/A74  142  —  127  
Digital Guardian, Inc.
Preferred stockN/AN/AN/A67  123  —  140  
Digital Guardian, Inc.
WarrantN/AN/AN/A12  33  —  45  
DISA Holdings Acquisition Subsidiary Corp.
Common StockN/AN/AN/A—  154  —  441  
EWC Growth Partners LLC
LLC interestN/AN/AN/A—  12  —  11  
GS Acquisitionco, Inc.
LP interestN/AN/AN/A2  291  —  409  
HealthcareSource HR, Inc.
LLC interestN/AN/AN/A—  621  0.1  783  
HSI Halo Acquisition, Inc.
Preferred stockN/AN/AN/A—  288  —  250  
HSI Halo Acquisition, Inc.
Preferred stockN/AN/AN/A—  —  —  —  
Hydraulic Authority III Limited(8)(9)(10)
Preferred stockN/AN/AN/A284  384  —  279  
Hydraulic Authority III Limited(8)(9)(10)
Common StockN/AN/AN/A6  43  —  —  
Internet Truckstop Group LLC
LP interestN/AN/AN/A408  447  —  385  
Kareo, Inc.
WarrantN/AN/AN/A53  162  —  3  
Kareo, Inc.
Preferred stockN/AN/AN/A1  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 CostPercentage
of Net
Assets
Fair
Value (4)
Diversified/Conglomerate Service - (continued)
Kareo, Inc.
WarrantN/AN/AN/A5  $6  —  %$12  
Maverick Bidco Inc.
LLC unitsN/AN/AN/A2  723  —  531  
MetricStream, Inc.
WarrantN/AN/AN/A168  263  —  183  
Namely, Inc.
WarrantN/AN/AN/A17  28  —  40  
Net Health Acquisition Corp.
LP interestN/AN/AN/A1  1,440  0.1  1,333  
Nexus Brands Group, Inc.
LP interestN/AN/AN/A—  547  —  304  
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH
WarrantN/AN/AN/A4  9  —  9  
Property Brands, Inc.
LLC unitsN/AN/AN/A63  766  0.1  965  
PCS Intermediate II Holdings, LLC
LLC unitsN/AN/AN/A—  367  —  340  
Personify, Inc.
LLC unitsN/AN/AN/A639  828  0.1  748  
Pride Midco, Inc.
Preferred stockN/AN/AN/A2  2,594  0.1  2,574  
Project Alpha Intermediate Holding, Inc.
Common StockN/AN/AN/A1  964  0.1  1,116  
Project Alpha Intermediate Holding, Inc.
Common StockN/AN/AN/A202  329  0.1  977  
RegEd Aquireco, LLC
LP interestN/AN/AN/A—  316  —  228  
RegEd Aquireco, LLC
LP interestN/AN/AN/A3  21  —  —  
SnapLogic, Inc.
Preferred stockN/AN/AN/A184  458  —  613  
SnapLogic, Inc.
WarrantN/AN/AN/A69  27  —  163  
Caliper Software, Inc.
Preferred stockN/AN/AN/A3  2,734  0.2  2,826  
Caliper Software, Inc.
Common StockN/AN/AN/A221  283  —  445  
Caliper Software, Inc.
Preferred stockN/AN/AN/A—  37  —  43  
Telesoft Holdings LLC
LP interestN/AN/AN/A6  6  —  5  
Vendavo, Inc.
Preferred stockN/AN/AN/A1,017  1,017  0.1  1,441  
Verisys Corporation
LLC interestN/AN/AN/A579  712  0.1  737  
Vitalyst, LLC
Preferred stockN/AN/AN/A—  61  —  45  
Vitalyst, LLC
Common StockN/AN/AN/A1  7  —  —  
Workforce Software, LLC
Common StockN/AN/AN/A—  973  —  389  
Xmatters, Inc. and Alarmpoint, Inc.
Preferred stockN/AN/AN/A474  494  —  553  
Xmatters, Inc. and Alarmpoint, Inc.
WarrantN/AN/AN/A84  64  —  19  
Xmatters, Inc. and Alarmpoint, Inc.
Preferred stockN/AN/AN/A20  26  —  23  
23,455  1.2  23,422  
Ecological
Pace Analytical Services, LLC
LLC unitsN/AN/AN/A6  700  —  650  
Electronics
Appriss Holdings, Inc.
Preferred stockN/AN/AN/A—  174  —  172  
Diligent Corporation
Preferred stockN/AN/AN/A414  1,609  0.1  2,107  
Episerver, Inc.
LLC unitsN/AN/AN/A76  807  0.1  544  
ES Acquisition LLC
LP interestN/AN/AN/A—  13  —  11  
Project Silverback Holdings Corp.
Preferred stockN/AN/AN/A3  6  —  —  
Red Dawn SEI Buyer, Inc.
LP interestN/AN/AN/A13  13  —  11  
Silver Peak Systems, Inc.
WarrantN/AN/AN/A67  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 CostPercentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare
Active Day, Inc.
LLC interestN/AN/AN/A1  $1,098  —  %$573  
Acuity Eyecare Holdings, LLC
LLC interestN/AN/AN/A1,158  1,334  0.1  1,291  
ADCS Clinics Intermediate Holdings, LLC
Preferred stockN/AN/AN/A1  1,119  0.1  562  
ADCS Clinics Intermediate Holdings, LLC
Common StockN/AN/AN/A—  6  —  —  
Aris Teleradiology Company, LLC
Preferred stockN/AN/AN/A—  —  —  —  
Aris Teleradiology Company, LLC
Preferred stockN/AN/AN/A5  —  —  —  
Aris Teleradiology Company, LLC
Common StockN/AN/AN/A2  —  —  —  
Aspen Medical Products, LLC
Common StockN/AN/AN/A—  77  —  54  
BIO18 Borrower, LLC(17)
LLC unitsN/AN/AN/A591  1,190  0.1  1,315  
BIOVT, LLC
LLC unitsN/AN/AN/A—  1,223  0.1  1,510  
CMI Parent Inc.
LLC unitsN/AN/AN/A—  240  —  225  
CMI Parent Inc.
LLC unitsN/AN/AN/A2  3  —  —  
CRH Healthcare Purchaser, Inc.
LP interestN/AN/AN/A429  469  —  463  
DCA Investment Holding, LLC
LLC unitsN/AN/AN/A13,890  1,619  0.1  1,150  
DCA Investment Holding, LLC
LLC unitsN/AN/AN/A140  218  —  —  
Deca Dental Management LLC
LLC unitsN/AN/AN/A1,008  1,278  —  303  
Elite Dental Partners LLC
Common StockN/AN/AN/A—  737  —  34  
Encore GC Acquisition, LLC
LLC unitsN/AN/AN/A26  272  —  289  
Encore GC Acquisition, LLC
LLC unitsN/AN/AN/A26  52  —  75  
ERG Buyer, LLC
LLC unitsN/AN/AN/A1  661  —  112  
ERG Buyer, LLC
LLC unitsN/AN/AN/A8  4  —  —  
Eyecare Services Partners Holdings LLC
LLC unitsN/AN/AN/A—  262  —  89  
Eyecare Services Partners Holdings LLC
LLC unitsN/AN/AN/A—  1  —  —  
G & H Wire Company, Inc.
LLC interestN/AN/AN/A336  269  —  136  
IntegraMed America, Inc.
LLC interestN/AN/AN/A—  417  —  —  
Joerns Healthcare, LLC^*#!~%
Common StockN/AN/AN/A432  4,330  0.1  1,752  
Katena Holdings, Inc.
LLC unitsN/AN/AN/A1  573  —  307  
Krueger-Gilbert Health Physics, LLC
LLC interestN/AN/AN/A155  172  —  88  
Lombart Brothers, Inc.
Common StockN/AN/AN/A1  440  —  181  
MD Now Holdings, Inc.
LLC unitsN/AN/AN/A15  153  —  141  
MWD Management, LLC & MWD Services, Inc.
LLC interestN/AN/AN/A412  335  —  197  
Oliver Street Dermatology Holdings, LLC
LLC unitsN/AN/AN/A452  234  —  —  
Pentec Acquisition Sub, Inc.
Preferred stockN/AN/AN/A1  116  —  147  
Pinnacle Treatment Centers, Inc.
Preferred stockN/AN/AN/A—  528  —  497  
Pinnacle Treatment Centers, Inc.
LLC unitsN/AN/AN/A5  74  —  —  
Radiology Partners, Inc.
LLC unitsN/AN/AN/A11  68  —  61  
Radiology Partners, Inc.
LLC unitsN/AN/AN/A43  55  —  240  
RXH Buyer Corporation
LP interestN/AN/AN/A11  973  0.1  757  
Sage Dental Management, LLC
LLC unitsN/AN/AN/A—  249  —  7  
Sage Dental Management, LLC
LLC unitsN/AN/AN/A3  3  —  —  
SLMP, LLC
LLC unitsN/AN/AN/A668  789  0.1  953  
Spear Education, LLC
LLC unitsN/AN/AN/A—  7  —  85  
Spear Education, LLC
LLC unitsN/AN/AN/A1  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 CostPercentage
of Net
Assets
Fair
Value (4)
Healthcare, Education and Childcare - (continued)
SSH Corpration
Common StockN/AN/AN/A—  $40  —  %$122  
Summit Behavioral Healthcare, LLC
LLC interestN/AN/AN/A2  98  —  84  
Summit Behavioral Healthcare, LLC
LLC interestN/AN/AN/A2  —  —  —  
Surgical Information Systems, LLC
Common StockN/AN/AN/A4  414  —  447  
WHCG Management, LLC
LLC interestN/AN/AN/A1  414  —  384  
22,615  0.8  14,657  
Insurance
Captive Resources Midco, LLC(17)
LLC unitsN/AN/AN/A425  —  —  290  
Orchid Underwriters Agency, LLC
LP interestN/AN/AN/A78  90  —  58  
90  —  348  
Leisure, Amusement, Motion Pictures, Entertainment
LMP TR Holdings, LLC
LLC unitsN/AN/AN/A712  712  0.1  593  
PADI Holdco, Inc.(17)
LLC unitsN/AN/AN/A1  969  —  447  
WBZ Investment LLC
LLC interestN/AN/AN/A68  117  —  88  
WBZ Investment LLC
LLC interestN/AN/AN/A46  80  —  60  
WBZ Investment LLC
LLC interestN/AN/AN/A38  65  —  49  
WBZ Investment LLC
LLC interestN/AN/AN/A33  58  —  43  
WBZ Investment LLC
LLC interestN/AN/AN/A14  24  —  19  
WBZ Investment LLC
LLC interestN/AN/AN/A1  2  —  2  
2,027  0.1  1,301  
Oil and Gas
W3 Co.
LLC unitsN/AN/AN/A3  1,632  0.1  1,439  
W3 Co.
Preferred stockN/AN/AN/A—  224  —  213  
1,856  0.1  1,652  
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC(17)
LLC interestN/AN/AN/A20  239  —  235  
Massage Envy, LLC
LLC interestN/AN/AN/A749  210  0.1  1,252  
449  0.1  1,487  
Personal, Food and Miscellaneous Services
Blue River Pet Care, LLC
LLC unitsN/AN/AN/A—  76  —  67  
Captain D's, LLC
LLC interestN/AN/AN/A158  156  —  102  
Midwest Veterinary Partners, LLC
LLC unitsN/AN/AN/A—  29  —  13  
Midwest Veterinary Partners, LLC
LLC unitsN/AN/AN/A6  —  —  —  
PPV Intermediate Holdings II, LLC
LLC interestN/AN/AN/A221  211  —  204  
R.G. Barry Corporation
Preferred stockN/AN/AN/A—  161  —  100  
Ruby Slipper Cafe LLC, The
LLC unitsN/AN/AN/A31  373  —  188  
Southern Veterinary Partners, LLC
LLC unitsN/AN/AN/A1  717  0.1  887  
Southern Veterinary Partners, LLC
LLC unitsN/AN/AN/A148  188  —  436  
Wetzel's Pretzels, LLC
Common StockN/AN/AN/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 CostPercentage
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 interestN/AN/AN/A—  165  —  —  
Feeders Supply Company, LLC
Preferred stockN/AN/AN/A4  400  —  363  
Feeders Supply Company, LLC
LLC unitsN/AN/AN/A—  —  —  —  
Jet Equipment & Tools Ltd.(8)(9)(12)
LLC unitsN/AN/AN/A1  948  0.1  998  
Paper Source, Inc.
Common StockN/AN/AN/A8  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 unitsN/AN/AN/A4  496  —  456  
Sola Franchise, LLC and Sola Salon Studios, LLC
LLC unitsN/AN/AN/A1  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 CostPercentage
of Net
Assets
Fair
Value (4)
Equity Investments(15)(16)
Beverage, Food and Tobacco
Uinta Brewing Company(8)
Common stockN/AN/AN/A153  $17  $—  %$—  
Diversified/Conglomerate Service
Switchfly LLC(8)
LLC unitsN/AN/AN/A3,418  2,320  —  2,417  
Electronics
Sloan Company, Inc., The(8)
LLC unitsN/AN/AN/A—  152  —  —  
Sloan Company, Inc., The+(8)
Common stockN/AN/AN/A—  41  —  41  
Sloan Company, Inc., The(8)
LLC unitsN/AN/AN/A2  14  —  —  
207  —  41  
Healthcare, Education and Childcare
Dental Holdings Corporation*(8)
Common stockN/AN/AN/A—  390  —  390  
390  —  390  
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc.(8)
LLC interestN/AN/AN/A59  —  —  —  
Benetech, Inc.(8)
LLC interestN/AN/AN/A59  —  —  —  
—  —  —  
Total non-controlled affiliate company equity investments$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 unitsN/AN/AN/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, 2020Net 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, 2019Purchases (cost)Redemptions
(cost)		Transfer in/out (cost)Premium amort/
Discount
accretion		Net change in unrealized
gain/(loss)		Fair value as of March 31, 2020Net 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 CostPercentage of Net Assets
Fair Value(4)
Investments
Non-controlled/non-affiliate company investments
Debt investments
Aerospace and Defense
ILC Dover, LP#+!~
Senior loanL + 4.75%
(a)(c)(d)
6.94%12/2023$6,617  $6,583  0.3  %$6,617  
NTS Technical Systems^*#+!~
One stopL + 6.25%
(a)(c)
8.35%06/202125,650  25,611  1.2  25,650  
NTS Technical Systems#+!~
One stopL + 6.25%
(a)(c)
8.35%06/20214,210  4,201  0.2  4,210  
NTS Technical Systems(5)
One stopL + 6.25%
N/A(6)
06/2021—  (40) —  —  
Tronair Parent, Inc.^+
Senior loanL + 4.75%
(c)
6.93%09/2023726  717  —  682  
Tronair Parent, Inc.
Senior loanL + 4.50%
(c)(f)
6.96%09/2021160  157  —  148  
Whitcraft LLC^*+
One stopL + 5.50%
(c)
7.60%04/202342,099  43,102  1.9  42,099  
Whitcraft LLC
One stopL + 5.50%
(c)
7.60%04/20238,300  8,292  0.4  8,300  
Whitcraft LLC(5)
One stopL + 5.50%
N/A(6)
04/2023—  (1) —  —  
87,762  88,622  4.0  87,706  
Automobile
Dent Wizard International Corporation#+!~
Senior loanL + 4.00%
(a)
6.05%04/202212,338  12,498  0.6  12,338  
Grease Monkey International, LLC^*
Senior loanL + 5.00%
(a)
7.04%11/20227,834  7,934  0.4  7,834  
Grease Monkey International, LLC#!~
Senior loanL + 5.00%
(a)
7.04%11/20222,394  2,494  0.1  2,394  
Grease Monkey International, LLC#!~
Senior loanL + 5.00%
(a)
7.04%11/20221,215  1,267  0.1  1,215  
Grease Monkey International, LLC#+!~
Senior loanL + 5.00%
(a)
7.04%11/20221,100  1,144  0.1  1,100  
Grease Monkey International, LLC
Senior loanL + 5.00%
(a)
7.04%11/2022126  130  —  126  
Grease Monkey International, LLC
Senior loanL + 5.00%
(a)
7.04%11/2022110  111  —  110  
JHCC Holdings LLC
One stopL + 5.50%
(c)
7.60%09/202515,788  15,475  0.7  15,630  
JHCC Holdings LLC
One stopL + 5.50%
(a)
7.54%09/202510  9  —  9  
JHCC Holdings LLC(5)
One stopL + 5.50%
N/A(6)
09/2025—  (3) —  (3) 
Polk Acquisition Corp.*
Senior loanL + 5.25%
(a)
7.29%06/20225,185  5,307  0.2  5,081  
Polk Acquisition Corp.
Senior loanL + 5.25%
(a)
7.29%06/202230  31  —  30  
Power Stop, LLC#+!~
Senior loanL + 4.75%
(c)
6.85%10/20252,871  2,935  0.1  2,871  
Quick Quack Car Wash Holdings, LLC*
One stopL + 6.50%
(a)
8.54%04/202313,218  13,345  0.6  13,218  
Quick Quack Car Wash Holdings, LLC*
One stopL + 6.50%
(a)
8.54%04/20232,084  2,169  0.1  2,084  
Quick Quack Car Wash Holdings, LLC
One stopL + 6.50%
(a)(c)
8.55%04/20231,822  1,897  0.1  1,822  
Quick Quack Car Wash Holdings, LLC*
One stopL + 6.50%
(a)
8.54%04/20231,392  1,450  0.1  1,392  
Quick Quack Car Wash Holdings, LLC
One stopL + 6.50%
(a)
8.55%04/202380  82  —  80  
67,597  68,275  3.2  67,331  
Beverage, Food and Tobacco
Abita Brewing Co., L.L.C.+
One stopL + 5.75%
(c)
7.87%04/20219,983  10,051  0.5  9,882  
Abita Brewing Co., L.L.C.(5)
One stopL + 5.75%
N/A(6)
04/2021—  (1) —  (2) 
BJH Holdings III Corp.#+!~
One stopL + 5.75%
(a)
7.79%08/202546,400  48,003  2.1  45,936  
BJH Holdings III Corp.
One stopL + 5.75%
(a)
7.79%08/2025160  151  —  152  
C. J. Foods, Inc.^*
One stopL + 6.25%
(c)
8.35%05/202029,179  30,052  1.3  29,179  
C. J. Foods, Inc.^
One stopL + 6.25%
(c)
8.35%05/20202,207  2,275  0.1  2,207  
C. J. Foods, Inc.
One stopL + 6.25%
(a)
8.30%05/2020592  636  —  592  
Cafe Rio Holding, Inc.^
One stopL + 5.75%
(c)
7.95%09/202318,801  19,065  0.9  18,801  
Cafe Rio Holding, Inc.
One stopL + 5.75%
(c)
7.95%09/20232,270  2,367  0.1  2,270  
Cafe Rio Holding, Inc.*
One stopL + 5.75%
(c)
7.95%09/20231,442  1,503  0.1  1,442  
Cafe Rio Holding, Inc.
One stopL + 5.75%
(c)
7.95%09/20231,273  1,327  0.1  1,273  
Cafe Rio Holding, Inc.
One stopL + 5.75%
(c)
7.85%09/2023335  332  —  335  
Cafe Rio Holding, Inc.
One stopL + 5.75%
(c)
7.85%09/2023183  183  —  183  
Cafe Rio Holding, Inc.
One stopP + 4.75%
(f)
9.75%09/202360  61  —  60  
See Notes to Consolidated Financial Statements.
37

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Golub Capital BDC, Inc. and Subsidiaries
Consolidated Schedule of Investments - continued
September 30, 2019
(In thousands)
(9)Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date or the date of the transaction. See Note 2. Significant Accounting Policies and Recent Accounting Updates - Foreign Currency Transactions.
(10)The headquarters of this portfolio company is located in the United Kingdom.
(11)The headquarters of this portfolio company is located in Australia.
(12)The headquarters of this portfolio company is located in Canada.
(13)Equity investments are non-income producing securities unless otherwise noted.
(14)Ownership of certain equity investments occurs through a holding company or partnership.
(15)The Company holds an equity investment that entitles it to receive preferential dividends.
(16)As defined in the 1940 Act, the Company is deemed to be an “affiliated person” of the portfolio company as the Company owns five percent or more of the portfolio company's voting securities (“non-controlled affiliate”). Transactions related to investments in non-controlled affiliates for the year ended September 30, 2019 were as follows:
Portfolio Company
Fair value as of September 30, 2018
Purchases (cost)(l)
Redemptions
(cost)		Transfer in/out (cost)Discount
accretion		Net change in unrealized
gain/(loss)		Fair value as of September 30, 2019Net 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, 2018Purchases (cost)Redemptions
(cost)		Transfer in/out (cost)Discount
accretion		Net change in unrealized
gain/(loss)		Fair value as of September 30, 2019Net 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, 2020As of September 30, 2019
  PrincipalAmortized
Cost		Fair
Value		PrincipalAmortized
Cost		Fair
Value
Senior secured$720,633  $712,769  $646,997  $601,788  $605,606  $589,340  
One stop3,705,970  3,732,086  3,470,782  3,514,266  3,559,030  3,474,116  
Second lien20,095  20,353  19,811  19,473  19,745  19,473  
Subordinated debt517  522  514  369  375  369  
LLC equity interests in the SLFs(1)(2)
N/A  —  —  N/A  127,487  123,644  
EquityN/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, 2020As of September 30, 2019
Amortized Cost:        
United States        
Mid-Atlantic$867,201  19.1 %$919,868  21.0 %
Midwest909,074  20.0  985,471  22.4  
West782,170  17.2  748,104  17.0  
Southeast1,049,364  23.1  944,794  21.5  
Southwest478,869  10.5  453,239  10.3  
Northeast323,991  7.1  217,138  4.9  
Canada101,064  2.2  99,823  2.3  
United Kingdom21,258  0.5  21,080  0.5  
Australia2,263  — *2,253  0.1  
Luxembourg976  — *—  —  
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 %
Midwest838,338  19.9  959,894  22.4  
West721,507  17.1  732,599  17.1  
Southeast970,794  23.1  929,922  21.6  
Southwest442,286  10.5  442,744  10.3  
Northeast304,899  7.3  211,920  4.9  
Canada91,280  2.2  97,392  2.3  
United Kingdom19,114  0.5  20,082  0.5  
Australia1,855  — *2,177  — *
Luxembourg900  — *—  —  
Andorra10,159  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, 2020As of September 30, 2019
Amortized Cost:        
Aerospace and Defense$103,724  2.3 %$92,797  2.1 %
Automobile73,494  1.6  70,401  1.6  
Beverage, Food and Tobacco244,410  5.4  257,594  5.9  
Broadcasting and Entertainment—  —  2,136  — *
Buildings and Real Estate58,824  1.3  134,083  3.0  
Chemicals, Plastics and Rubber32,001  0.7  19,184  0.4  
Containers, Packaging and Glass3,844  0.1  —  —  
Diversified/Conglomerate Manufacturing147,295  3.2  127,441  2.9  
Diversified/Conglomerate Service1,683,012  37.0  1,470,501  33.5  
Ecological 45,774  1.0  44,573  1.0  
Electronics259,214  5.7  257,587  5.9  
Finance19,487  0.4  19,532  0.4  
Grocery7,820  0.2  444  — *
Healthcare, Education and Childcare854,237  18.8  772,226  17.6  
Home and Office Furnishings, Housewares, and Durable Consumer31,786  0.7  21,551  0.5  
Hotels, Motels, Inns, and Gaming9,605  0.2  8,463  0.2  
Insurance93,629  2.1  105,238  2.4  
Investment Funds and Vehicles—  —  127,487  2.9  
Leisure, Amusement, Motion Pictures, Entertainment210,424  4.6  186,894  4.3  
Mining, Steel, Iron and Non-Precious Metals4,699  0.1  4,794  0.1  
Oil and Gas56,314  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 Services172,042  3.8  214,582  4.9  
Printing and Publishing18,856  0.4  10,787  0.2  
Retail Stores312,606  6.9  302,054  6.9  
Telecommunications11,214  0.3  11,832  0.3  
Textiles and Leather4,107  0.1  4,080  0.1  
Utilities14,783  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, 2020As of September 30, 2019
Fair Value:        
Aerospace and Defense$99,163  2.4 %$91,651  2.1 %
Automobile67,899  1.6  69,820  1.6  
Beverage, Food and Tobacco219,909  5.2  252,588  5.9  
Broadcasting and Entertainment—  —  2,108  0.1  
Buildings and Real Estate56,294  1.3  133,053  3.1  
Chemicals, Plastics and Rubber29,542  0.7  18,922  0.4  
Containers, Packaging and Glass3,609  0.1  —  —  
Diversified/Conglomerate Manufacturing131,206  3.1  124,040  2.9  
Diversified/Conglomerate Service1,593,008  37.8  1,442,750  33.6  
Ecological43,223  1.0  43,857  1.0  
Electronics249,348  5.9  249,678  5.8  
Finance18,300  0.4  18,883  0.4  
Grocery7,782  0.2  411  — *
Healthcare, Education and Childcare766,813  18.2  746,484  17.4  
Home and Office Furnishings, Housewares, and Durable Consumer28,617  0.7  20,894  0.5  
Hotels, Motels, Inns, and Gaming7,258  0.2  8,419  0.2  
Insurance92,131  2.2  104,086  2.4  
Investment Funds and Vehicles—  —  123,644  2.9  
Leisure, Amusement, Motion Pictures, Entertainment190,671  4.5  183,836  4.3  
Mining, Steel, Iron and Non-Precious Metals3,100  0.1  3,747  0.1  
Oil and Gas52,313  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 Services157,610  3.8  208,728  4.9  
Printing and Publishing16,978  0.4  10,427  0.2  
Retail Stores278,687  6.6  294,463  6.9  
Telecommunications10,836  0.3  11,627  0.3  
Textiles and Leather3,705  0.1  3,927  0.1  
Utilities14,298  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 SLF27  
Largest portfolio company investment(1)
$12,654  
Total of five largest portfolio company investments(1)
$54,268  

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


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

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

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

As of September 30, 2019, the Company had committed to fund $175,000 of LLC equity interest subscriptions to SLF. As of September 30, 2019, $74,883 of the Company’s LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall. Immediately prior to the Purchase Agreement, $70,507 of the Company's LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall. 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 assets8,759  
Total assets$161,018  
Senior credit facility$75,581  
Other liabilities424  
Total liabilities76,005  
Members’ equity85,013  
Total liabilities and members' equity$161,018  

Three months ended December 31,Three months ended March 31,Six months ended March 31,
  201920192019
Selected Statement of Operations Information:      
Interest income$2,800  $3,538  $7,174  
Fee income—  —  9  
Total investment income2,800  3,538  7,183  
Interest and other debt financing expense634  1,133  2,320  
Administrative service fee61  64  144  
Other expenses(15) 25  49  
Total expenses680  1,222  2,513  
Net investment income2,120  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 SLF28  
Largest portfolio company investment (1)
$8,464  
Total of five largest portfolio company investments (1)
$34,273  

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







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

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

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

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





















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

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

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


Note 5. Forward Currency Contracts

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

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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
CounterpartyCurrency to be soldCurrency to be purchasedSettlement dateUnrealized appreciation ($)Unrealized depreciation ($)
Macquarie Bank Limited  £8,925  GBP$11,219  USD3/2/2023$97  $—  
Macquarie Bank Limited  £3,780  GBP$4,804  USD3/27/202393  —  
Macquarie Bank Limited  €6,760  EUR$8,044  USD4/28/2023386  —  
Macquarie Bank Limited  €9,300  EUR$10,861  USD4/29/2022355  —  
$931  $—  

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

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

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

The following table is intended to provide additional information about the effect of the forward currency contracts on the financial statements of the Company including: the fair value of derivatives by risk category, the location of those fair values on the Consolidated Statement of Financial Condition, and the Company’s gross and net amount of assets and liabilities available for offset under netting arrangements as well as any related collateral received or pledged by the Company as of March 31, 2020 and September 30, 2019.
As of March 31, 2020
CounterpartyRisk exposure categoryUnrealized appreciation on forward currency contracts Unrealized depreciation on forward currency contracts Net amounts presented in the Consolidated Statement of Financial Condition
Collateral (Received) Pledged (1)
Net Amount (2)
Macquarie Bank Limited  Foreign exchange  $931  $—  $931  $—  $931  
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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)


As of September 30, 2019
CounterpartyRisk exposure categoryUnrealized appreciation on forward currency contracts Unrealized depreciation on forward currency contracts Net amounts presented in the Consolidated Statement of Financial Condition
Collateral (Received) Pledged (1)
Net Amount (2)
Macquarie Bank 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 categoryFor the three months ended March 31, 2020For the six months ended March 31, 2020
Foreign exchange $—  $—  
Change in unrealized appreciation (depreciation) on forward currency contracts recognized in income
Risk exposure categoryFor the three months ended March 31, 2020For 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, 2020For 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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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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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, 2020Fair Value Measurements Using
DescriptionLevel 1Level 2Level 3Total
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, 2019Fair Value Measurements Using
DescriptionLevel 1Level 2Level 3Total
Assets, at fair value:        
Debt investments(1)
$—  $—  $4,083,298  $4,083,298  
Equity investments(1)
—  —  85,990  85,990  
Money market funds(1)(2)
9,963  —  —  9,963  
Investment measured at NAV(3)(4)
—  —  —  123,644  
Total assets, at fair value:$9,963  $—  $4,169,288  $4,302,895  
Liabilities at fair value:
Forward currency contracts $—  $(115) $—  $(115) 
Total liabilities, at fair value:$—  $(115) $—  $(115) 

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

The net change in unrealized appreciation (depreciation) for the three and 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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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, net31,054  —  31,054  
Fundings of investments493,587  5,254  498,841  
PIK interest4,648  —  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, net4,051  —  4,051  
Fundings of investments303,880  5,305  309,185  
PIK interest851  —  851  
Proceeds from principal payments and sales of portfolio investments(138,501) (3,124) (141,625) 
Accretion of discounts and amortization of premiums3,930  —  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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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, 2020Valuation TechniquesUnobservable Input
Range (Weighted Average) (1)
Assets:        
Senior secured loans(2)
$623,688  Market rate approachMarket interest rate4.5% - 18.0% (7.6%)
    Market comparable companiesEBITDA multiples5.5x - 20.0x (11.0x)
5,562  Market comparableBroker/dealer bids or quotesN/A
One stop loans(3)(4)
$3,422,341  Market rate approachMarket interest rate2.8% - 27.3% (8.7%)
  Market comparable companiesEBITDA multiples4.5x - 27.2x (12.8x)
      Revenue multiples1.5x - 10.0x (5.8x)
Subordinated debt and second lien loans(5)
$20,325  Market rate approachMarket interest rate4.0% - 12.0% (11.1%)
    Market comparable companiesEBITDA multiples8.5x - 16.0x (12.7x)
      Revenue multiples4.0x (4.0x)
Equity(6)
$72,111  Market comparable companiesEBITDA multiples4.5x - 27.2x (12.7x)
      Revenue multiples1.5x - 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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Notes to Consolidated Financial Statements (unaudited)
(In thousands, except shares and per share data)

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

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

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

Other Financial Assets and Liabilities

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

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

The following are the carrying values and fair values of the Company’s debt as of March 31, 2020 and September 30, 2019.
As of March 31, 2020As of September 30, 2019
  Carrying ValueFair ValueCarrying ValueFair 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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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,
  2020201920202019
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 rate3.0 %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:
DescriptionClass A-1-R 2014 NotesClass A-2-R 2014 NotesClass B-R 2014 Notes
TypeSenior Secured Floating RateSenior Secured Floating RateSenior Secured Floating Rate
Amount Outstanding$61,054$6,393$35,000
Moody’s Rating"Aaa""Aaa""Aa1"
S&P Rating"AAA""AAA""AA+"
Interest RateLIBOR + 0.95%LIBOR + 0.95%LIBOR + 1.40%

On November 16, 2018, the Company completed a $602.4 million term debt securitization (the “2018 Debt Securitization”). The notes offered in the 2018 Debt Securitization (the “2018 Notes”) were issued by the 2018 Issuer, a subsidiary of 2018 CLO Depositor, and are backed by a diversified portfolio of senior secured and second lien loans. The transaction was executed through a private placement of approximately $327.0 million of AAA/AAA Class A 2018 Notes, which bear interest at the three-month LIBOR plus 1.48%; $61.2 million of AA Class B 2018 Notes, which bear interest at the three-month LIBOR plus 2.10%; $20.0 million of A Class C-1 2018 Notes, which bear interest at the three-month LIBOR plus 2.80%; $38.8 million of A Class C-2 2018 Notes, which bear interest at the three-month LIBOR plus 2.65%; $42.0 million of BBB- Class D 2018 Notes, which bear interest at the three-month LIBOR plus 2.95%; and $113.4 million of Subordinated 2018 Notes which do not bear interest. The Company indirectly retained all of the Class C-2, Class D and Subordinated 2018 Notes. Through January 20, 2023, the 2018 Issuer is permitted to use all principal collections received on the underlying collateral to purchase new collateral under the direction of the Investment Adviser, in its capacity as collateral manager of the 2018 Issuer and in accordance with the Company’s investment strategy, allowing the Company to maintain the initial leverage in the 2018 Debt Securitization. The 2018 Notes are scheduled to mature on January 20, 2031. The Class A, Class B and Class C-1 2018 Notes are included in the 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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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,
  2020201920202019
Stated interest expense$3,600  $4,353  $7,430  $6,578  
Amortization of debt issuance costs105  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 rate3.5 %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:
DescriptionClass A 2018 NotesClass B 2018 NotesClass C-1 2018 Notes
TypeSenior Secured Floating RateSenior Secured Floating RateSenior Secured Floating Rate
Amount Outstanding$327,000$61,200$20,000
Fitch Rating"AAA""NR""NR"
S&P Rating"AAA""AA""A"
Interest RateLIBOR + 1.48%LIBOR + 2.10%LIBOR + 2.80%

Effective September 16, 2019, the Company assumed, as a result of the Merger, a $908,195 term debt securitization (the “GCIC 2018 Debt Securitization”). The GCIC 2018 Debt Securitization was originally completed on December 13, 2018. The notes offered in the GCIC 2018 Debt Securitization (the “GCIC 2018 Notes”) were issued by the GCIC 2018 Issuer, a subsidiary of GCIC 2018 CLO Depositor, and are secured by a diversified portfolio of senior secured and second lien loans. The GCIC 2018 Debt Securitization consists of $490,000 of AAA/AAA Class A-1 GCIC 2018 Notes, $38,500 of AAA Class A-2 GCIC 2018 Notes, and $18,000 of AA Class B-1 GCIC 2018 Notes. In partial consideration for the loans transferred to the GCIC 2018 Issuer as part of the GCIC 2018 Debt Securitization, the GCIC 2018 CLO Depositor received and retained $27,000 of Class B-2 GCIC 2018 Notes, $95,000 of Class C GCIC 2018 Notes and $60,000 of Class D GCIC 2018 Notes and $179,695 of Subordinated GCIC 2018 Notes. The Class A-1, Class A-2 and Class B-1 GCIC 2018 Notes are included in the 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,
  2020201920202019
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 rate3.8 %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:
DescriptionClass A-1 GCIC 2018 NotesClass A-2 GCIC 2018 NotesClass B-1 GCIC 2018 Notes
TypeSenior Secured Floating RateSenior Secured Fixed RateSenior Secured Floating Rate
Amount Outstanding$490,000$38,500$18,000
Fitch’s Rating"AAA""NR""NR"
S&P Rating"AAA""AAA""AA"
Interest RateLIBOR + 1.48%4.67%LIBOR + 2.25%

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

As part of each of the 2014 Debt Securitization, the 2018 Debt Securitization and the GCIC 2018 Debt Securitization, GBDC entered into, or assumed in the Merger, master loan sale agreements under which GBDC agreed to directly or indirectly sell or contribute certain senior secured and second lien loans (or participation interests therein) to the 2014 Issuer, the 2018 Issuer and the GCIC 2018 Issuer, as applicable, and to purchase or otherwise acquire the LLC equity interests in the 2014 Issuer, the Subordinated 2018 Notes and the GCIC Subordinated 2018 Notes, as applicable. As of 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,
  2020201920202019
Stated interest expense$2,375  $2,384  $4,818  $4,747  
Amortization of debt issuance costs310  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 rate3.2 %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,
  2020201920202019
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  $—  $2,033  
Annualized average stated interest rateN/A  4.7 %N/A  4.5 %
Average outstanding balance$—  $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,
  2020201920202019
Stated interest expense$—  $—  $—  $1,453  
Amortization of debt issuance costs—  —  —  190  
Total interest and other debt financing expenses$—  $—  $—  $1,643  
Cash paid for interest expense and facility fees$—  $—  $—  $3,174  
Annualized average stated interest rateN/A  N/A  N/A  4.2 %
Average outstanding balance$—  $—  $—  $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,
  2020201920202019
Stated interest expense$3,420  $1,188  $6,735  $1,188  
Facility fees90  26  262  26  
Amortization of debt issuance costs318  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 rate3.4 %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,
  2020201920202019
Stated interest expense$1,940  $—  4,321  $—  
Facility fees96  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 rate3.4 %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,
  2020201920202019
Stated interest expense$1,915  $—  $4,444  $—  
Facility fees173  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 rate3.4 %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,
2020201920202019
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 rate3.5 %— %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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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,
  2020201920202019
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 rate3.5 %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
  TotalLess Than
1 Year		1 – 3 Years3 – 5 YearsMore Than
5 Years
2014 Debt Securitization$102,447  $—  $—  $—  $102,447  
2018 Debt Securitization408,200  —  —  —  408,200  
2018 GCIC Debt Securitization(1)
541,480  —  —  —  541,480  
SBA Debentures287,450  —  58,200  47,000  182,250  
WF Credit Facility278,954  —  —  278,954  —  
MS Credit Facility II408,452  208,452  —  200,000  —  
Adviser Revolver27,500  —  27,500  —  —  
DB Credit Facility246,997  —  —  246,997  —  
SLF Credit Facility29,543  —  29,543  —  —  
GCIC SLF Credit Facility31,655  —  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)
20202019
Net asset value at beginning of period$16.76  $16.10  
Net increase in net assets as a result of issuance of DRIP shares(2)
0.01  0.01  
Distributions declared:
From net investment income(0.71) (0.63) 
From capital gains(0.08) (0.13) 
Net investment income0.48  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 outstanding133,807,609  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:20202019
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 assets0.44 %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 SecuritizationN/A  N/A  
2014 Debt SecuritizationN/A  N/A  
2018 Debt SecuritizationN/A  N/A  
2018 GCIC Debt SecuritizationN/A  N/A  
SBA DebenturesN/A  N/A  
GCIC Credit FacilityN/A  N/A  
MS Credit FacilityN/A  N/A  
MS Credit Facility IIN/A  N/A  
RevolverN/A  N/A  
WF Credit Facility N/A  N/A  
DB Credit Facility N/A  N/A  
SLF Senior Credit FacilityN/A  N/A  
GCIC Senior Credit FacilityN/A  N/A  
Adviser RevolverN/A  N/A  
Adviser Revolver IIN/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,
  2020201920202019
Earnings (loss) available to stockholders$(228,964) $17,788  $(181,916) $36,227  
Basic and diluted weighted average shares outstanding133,807,609  60,429,580  133,242,326  60,301,709  
Basic and diluted earnings per share$(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 DeclaredRecord DatePayment DateAmount
Per Share		Cash
Distribution		DRIP Shares
Issued		DRIP Shares
Value
Six months ended March 31, 2020
11/22/201912/12/201912/30/2019$0.46  
(1)
$40,793  1,149,409  $20,230  
02/04/202003/06/202003/27/2020$0.33  $30,123  —  $14,034  
(2)
Six months ended March 31, 2019        
11/27/201812/12/201812/28/2018$0.44  
(3)
$22,339  256,785  $4,134  
02/05/201903/07/201903/28/2019$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, 2020As of September 30, 2019
Investment TypeInvestments at
Fair Value
(In thousands)		Percentage of
Total
Investments		Investments at
Fair Value
(In thousands)		Percentage of
Total
Investments
Senior secured$646,997  15.4 %$589,340  13.7 %
One stop3,470,782  82.4  3,474,116  80.9  
Second lien19,811  0.5  19,473  0.5  
Subordinated debt514  — *369  — *
LLC equity interests in SLF and GCIC SLF(1)
—  —  123,644  2.9  
Equity72,111  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,
  2020201920202019
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 Subsegments1
Less exposed to COVID-19
(>75% of portfolio2)
Significantly exposed to COVID-19 exposure
(<20% of portfolio2)
Most significantly exposed to COVID-19
(<1% of portfolio2)
Software & TechnologyRestaurantsAirlines & Aircraft Finance
Business ServicesDental CareBoating & Marine
Healthcare3
Eye CareEntertainment
Aerospace & DefenseFitness FranchisesGaming
DistributionRetailHotels
Financial ServicesMetals & Mining
Food & BeverageOil & Gas
ManufacturingProject Finance
EducationReal Estate
Shipping

(1)Industry subsegments are based on GC Advisors' internal analysis and industry classifications as of 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 Price1
CategoryAs 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,VariancesFor the six months ended March 31,Variances
  202020192020 vs. 2019202020192020 vs. 2019
  (In thousands)(In thousands)
Interest income$82,848  $39,684  $43,164  $167,170  $76,581  $90,589  
Income from accretion of discounts and origination fees4,573  1,977  2,596  8,541  3,930  4,611  
GCIC acquisition purchase premium amortization(12,600) —  (12,600) (24,437) —  (24,437) 
Dividend income from LLC equity interests in SLF and GCIC SLF(1)
—  —  —  1,905  —  1,905  
Dividend income146  19  127  180  58  122  
Fee income157  125  32  372  647  (275) 
Total investment income75,124  41,805  33,319  153,731  81,216  72,515  
Total expenses43,178  21,749  21,429  89,054  41,343  47,711  
Net investment income (loss)31,946  20,056  11,890  64,677  39,873  24,804  
Net realized gain (loss) on investment transactions (9,360) (1,861) (7,499) (6,819) (3,839) (2,980) 
Net realized gain (loss) on investment transactions due to purchase premium(2,310) —  (2,310) (2,350) —  (2,350) 
Net change in unrealized appreciation (depreciation) on investment transactions excluding purchase premium
(264,150) (407) (263,743) (264,211) 193  (264,404) 
Net change in unrealized depreciation on investment transactions due to purchase premium
14,910  —  14,910  26,787  —  26,787  
Net gain (loss) on investment transactions (260,910) (2,268) (258,642) (246,593) (3,646) (242,947) 
Net increase (decrease) in net assets resulting from operations$(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,
2020201920202019
  (In thousands)(In thousands)
Net investment income $31,946  $20,056  $64,677  $39,873  
Add: GCIC acquisition purchase premium amortization12,600  —  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) $(3,646) 
Add: Realized loss on investment transactions due to purchase premium2,310  —  2,350  —  
Less: Net change in unrealized appreciation on investment transactions due to purchase premium (14,910) —  (26,787) —  
Adjusted net realized and unrealized gain/(loss)$(273,510) -273510$(2,268) $(271,030) $(3,646) 
Net increase (decrease) in net assets resulting from operations$(228,964) $17,788  $(181,916) $36,227  
Add: GCIC acquisition purchase premium amortization12,600  —  24,437  —  
Less: Accrual (reversal) for capital gain incentive fee —  (669) —  (1,147) 
Add: Realized loss on investment transactions due to purchase premium2,310  —  2,350  —  
Less: Net change in unrealized appreciation on investment transactions due to purchase premium (14,910) —  (26,787) —  
Adjusted net income/(loss)$(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,
  2020201920202019
Senior secured6.6%7.5%6.8%7.4%
One stop7.9%8.9%8.0%8.8%
Second lien11.3%10.9%11.3%10.7%
Subordinated debt16.9%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,VariancesFor the six months ended March 31,Variance
  202020192020 vs. 2019202020192020 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 costs733  467  266  1,304  1,136  168  
Base management fee14,858  6,594  8,264  30,064  13,033  17,031  
Income incentive fee3,847  3,735  112  9,751  6,196  3,555  
Capital gain incentive fee—  (669) 669  —  (1,147) 1,147  
Professional fees1,045  666  379  1,984  1,254  730  
Administrative service fee1,446  663  783  2,848  1,362  1,486  
General and administrative expenses432  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,VariancesFor the six months ended March 31,Variance
  202020192020 vs. 2019202020192020 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 transactions169  (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 investments7,828  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,
  2020201920202019
  (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 stop108,886  65.2  104,169  89.7366,215  83.6261,186  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
Equity2,291  1.4  207  0.24,306  1.05,305  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)
  PrincipalAmortized
Cost		Fair
Value		PrincipalAmortized
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:            
Performing3,629,023  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:            
Performing20,095  20,353  19,811  19,473  19,745  19,473  
Non-accrual(3)
—  —  —  —  —  —  
Subordinated debt:            
Performing517  522  514  369  375  369  
Non-accrual(3)
—  —  —  —  —  —  
LLC equity interests in SLF and GCIC SLF(4)
N/A  —  —  N/A127,487  123,644  
EquityN/A  82,269  72,111  N/A79,527  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,
  2020201920202019
Weighted average rate of new investment fundings7.1%8.7%7.3%8.0%
Weighted average spread over LIBOR of new floating rate investment fundings5.2%6.0%5.4%5.6%
Weighted average rate of new fixed rate investment fundingsN/A8.0%N/A8.0%
Weighted average fees of new investment fundings1.1%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, 2020As of September 30, 2019
Internal
Performance
Rating		Investments
at Fair Value
(In thousands)		Percentage of
Total
Investments		Investments
at Fair Value
(In thousands)		Percentage of
Total
Investments
5$104,894  2.5%$115,318  2.7%
42,906,749  69.03,787,809  88.2
31,114,712  26.5337,358  7.9
283,204  2.052,434  1.2
1656  
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 SLF27  
Largest portfolio company investment(1)
$12,654  
Total of five largest portfolio company investments(1)
$54,268  

(1)At principal amount.
(2)Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at principal amount.
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SLF Investment Portfolio as of September 30, 2019
Portfolio CompanyBusiness DescriptionSecurity TypeMaturity
Date
Current
Interest
Rate(1)
Principal ($) /
Shares(2)
Fair
Value(3)
(Dollars in thousands)
1A Smart Start LLC(4)
 Electronic Equipment, Instruments & Components Senior loan02/2022 6.5%  $2,961  $2,961  
Advanced Pain Management Holdings, Inc.(4)(5)
 Health Care Providers & Services Senior loan12/2019 7.1 6,172  3,703  
Advanced Pain Management Holdings, Inc.(4)(5)
 Health Care Providers & Services Senior loan12/2019 7.1 422  253  
Advanced Pain Management Holdings, Inc.(4)(5)(7)
 Health Care Providers & Services Senior loan12/2019 7.1 193  (8) 
Advanced Pain Management Holdings, Inc.(4)(5)
 Health Care Providers & Services Senior loan12/2019 10.6 2,139  4  
Boot Barn, Inc.(4)
 Specialty Retail Senior loan06/2023 6.6 6,022  6,022  
Brandmuscle, Inc. Professional Services Senior loan12/2021 6.9 4,418  4,415  
Brandmuscle, Inc. Professional Services Senior loan12/2021 
N/A(6)
 —  —  
Captain D's, LLC(4)
 Food & Staples Retailing Senior loan12/2023 6.5 2,433  2,433  
Captain D's, LLC(4)
 Food & Staples Retailing Senior loan12/2023 7.5 17  17  
CLP Healthcare Services, Inc. Health Care Providers & Services Senior loan12/2020 7.4 8,415  8,415  
CLP Healthcare Services, Inc. Health Care Providers & Services Senior loan12/2020 7.4 4,239  4,239  
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan10/2021 7.5 2,392  2,392  
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan10/2021 7.5 1,203  1,203  
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan10/2021 7.5 58  58  
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan10/2021 7.5 40  40  
Community Veterinary Partners, LLC Health Care Providers & Services Senior loan10/2021 
N/A(6)
 —  —  
DISA Holdings Acquisition Subsidiary Corp.(4)
 Professional Services Senior loan06/2022 7.1 4,773  4,773  
DISA Holdings Acquisition Subsidiary Corp.(4)
 Professional Services Senior loan06/2022 6.0 53  53  
Flexan, LLC Health Care Equipment & Supplies Senior loan02/2020 7.9 5,905  5,905  
Flexan, LLC Health Care Equipment & Supplies Senior loan02/2020 7.9 1,640  1,640  
Flexan, LLC(4)
 Health Care Equipment & Supplies Senior loan02/2020 9.5 431  431  
Gamma Technologies, LLC(4)
 IT Services Senior loan06/2024 7.3 10,084  10,084  
III US Holdings, LLC Software Senior loan09/2022 8.1 4,288  4,288  
Jensen Hughes, Inc. Building Products Senior loan03/2024 6.6 2,276  2,276  
Jensen Hughes, Inc. Building Products Senior loan03/2024 6.6 118  118  
Jensen Hughes, Inc. Building Products Senior loan03/2024 6.6 63  63  
Joerns Healthcare, LLC(4)
 Health Care Equipment & Supplies Senior loan08/2024 8.2 1,286  1,286  
Joerns Healthcare, LLC(4)
 Health Care Equipment & Supplies Senior loan08/2024 8.2 1,338  1,338  
Mediaocean LLC Software Senior loan08/2020 
N/A(6)
 —  —  
Paradigm DKD Group, LLC(4)(5)
 Consumer Finance Senior loan05/2022 8.4 1,480  1,094  
Paradigm DKD Group, LLC(4)(5)(7)
 Consumer Finance Senior loan05/2022 8.4 (16) (59) 
Pasternack Enterprises, Inc. and Fairview Microwave, Inc(4)
 Electronic Equipment, Instruments & Components Senior loan07/2025 6.0 5,264  5,264  
Polk Acquisition Corp.(4)
 Auto Components Senior loan06/2022 7.3 4,465  4,376  
Polk Acquisition Corp.(4)
 Auto Components Senior loan06/2022 7.3 60  58  
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SLF Investment Portfolio as of September 30, 2019 - (continued)
Portfolio CompanyBusiness DescriptionSecurity TypeMaturity
Date
Current
Interest
Rate(1)
Principal ($) /
Shares(2)
Fair
Value(3)
(Dollars in thousands)
Polk Acquisition Corp. Auto Components Senior loan06/2022 7.3%  $52  $51  
Pyramid Healthcare, Inc.(4)
 Health Care Providers & Services Senior loan08/2020 8.8 10,047  10,047  
Pyramid Healthcare, Inc. Health Care Providers & Services Senior loan08/2020 9.2 257  257  
Pyramid Healthcare, Inc. Health Care Providers & Services Senior loan08/2020 8.8 147  147  
Pyramid Healthcare, Inc. Health Care Providers & Services Senior loan08/2020 8.8 99  99  
RSC Acquisition, Inc.(4)
 Insurance Senior loan11/2022 6.4 3,785  3,785  
RSC Acquisition, Inc.(4)
 Insurance Senior loan11/2021 
N/A(6)
 —  —  
Rubio's Restaurants, Inc (4)
 Food & Staples Retailing Senior loan10/2019 9.1 4,890  4,890  
Sage Dental Management, LLC  Health Care Providers & Services Senior loan12/2020 7.35% cash/1.00% PIK 4,341  3,907  
Sage Dental Management, LLC  Health Care Providers & Services Senior loan12/2020 8.4 70  62  
Sage Dental Management, LLC  Health Care Providers & Services Senior loan12/2020 8.4 63  57  
Sage Dental Management, LLC  Health Care Providers & Services Senior loan12/2020 8.4 45  40  
SEI, Inc.(4)
 IT Services Senior loan07/2023 6.8 11,004  11,004  
SEI, Inc. IT Services Senior loan07/2023 
N/A(6)
 —  —  
Self Esteem Brands, LLC (4)
 Hotels, Restaurants & Leisure Senior loan02/2022 6.3 9,561  9,561  
Self Esteem Brands, LLC (4)
 Hotels, Restaurants & Leisure Senior loan02/2022 8.3 415  415  
Teasdale Quality Foods, Inc. Food Products Senior loan10/2020 7.9 4,190  3,771  
Teasdale Quality Foods, Inc. Food Products Senior loan10/2020 7.9 3,285  2,956  
Teasdale Quality Foods, Inc. Food Products Senior loan10/2020 7.9 567  511  
Teasdale Quality Foods, Inc.(4)
 Food Products Senior loan10/2020 7.9 424  382  
Teasdale Quality Foods, Inc. Food Products Senior loan10/2020 7.9 210  189  
Upstream Intermediate, LLC Health Care Equipment & Supplies Senior loan01/2024 6.0 2,796  2,796  
WHCG Management, LLC (4)
 Health Care Providers & Services Senior loan03/2023 8.1 7,820  7,820  
WIRB-Copernicus Group, Inc.(4)
 Health Care Providers & Services Senior loan08/2022 6.4 5,554  5,554  
Total senior loan investments$154,254  $147,436  
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 GasLLC unitsN/AN/A3  1,654  
W3 Co.(8)(9)
Oil and GasPreferred stockN/AN/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 assets8,759  
Total assets$161,018  
Senior credit facility$75,581  
Other liabilities424  
Total liabilities76,005  
Members’ equity85,013  
Total liabilities and members' equity$161,018  

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Three months ended December 31, Three months ended March 31,Six months ended March 31,
  201920192019
  (In thousands)
Selected Statement of Operations Information:    
Interest income$2,800  $3,538  $7,174  
Fee income—  —  9  
Total investment income2,800  3,538  7,183  
Interest and other debt financing expenses634  1,133  2,320  
Administrative service fee61  64  144  
Other expenses(15) 25  49  
Total expenses680  1,222  2,513  
Net investment income2,120  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 SLF28  
Largest portfolio company investment (1)
$8,464  
Total of five largest portfolio company investments (1)
$34,273  

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



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

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

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

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

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

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


Contractual Obligations and Off-Balance Sheet Arrangements

A summary of our significant contractual payment obligations as of March 31, 2020 is as follows:
Payments Due by Period (In thousands)
  TotalLess Than
1 Year		1 – 3 Years3 – 5 YearsMore Than
5 Years
2014 Debt Securitization$102,447  $—  $—  $—  $102,447  
2018 Debt Securitization408,200  —  —  —  408,200  
2018 GCIC Debt Securitization541,480  —  —  —  541,480  
SBA debentures287,450  —  58,200  47,000  182,250  
WF Credit Facility278,954  —  —  278,954  —  
MS Credit Facility II408,452  208,452  —  200,000  —  
Adviser Revolver27,500  —  27,500  —  —  
DB Credit Facility246,997  —  —  246,997  —  
SLF Credit Facility29,543  —  29,543  —  —  
GCIC SLF Credit Facility31,655  —  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 ratesIncrease (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 points21,728  10,184  11,544  
Up 100 basis points43,457  20,367  23,090  
Up 150 basis points65,185  30,551  34,634  
Up 200 basis points86,914  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, 2020By/s/ David B. Golub
David B. Golub
Chief Executive Officer
(Principal Executive Officer)
Dated: May 11, 2020By/s/ Ross A. Teune
Ross A. Teune
Chief Financial Officer
(Principal Accounting and Financial Officer)

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GOLUB CAPITAL BDC, Inc. Reports