Golub Capital BDC 3, Inc. - FORM 10-Q

Attached files

file	filename
EX-32.1 - EX-32.1 - Golub Capital BDC 3, Inc.	gbdc310-qxfy21q1exhibit321.htm
EX-31.2 - EX-31.2 - Golub Capital BDC 3, Inc.	gbdc310-qxfy21q1exhibit312.htm
EX-31.1 - EX-31.1 - Golub Capital BDC 3, Inc.	gbdc310-qxfy21q1exhibit311.htm

TABLE OF CONTENTS

______________________________________________________________________________________________________

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 December 31, 2020

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 814-01244

Golub Capital BDC 3, Inc.

(Exact name of registrant as specified in its charter)


Maryland						82-2375481
(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)

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 o			Accelerated filer o
Non-accelerated filer o			Smaller reporting company o
Emerging growth company þ

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. þ

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 February 12, 2021, the Registrant had 37,643,597.766 shares of common stock, $0.001 par value, outstanding.

TABLE OF CONTENTS


Part I. Financial Information
Item 1.	Financial Statements	3
	Consolidated Statements of Financial Condition as of December 31, 2020 (unaudited) and September 30, 2020	3
	Consolidated Statements of Operations for the three months ended December 31, 2020 (unaudited) and 2019 (unaudited)	4
	Consolidated Statements of Changes in Net Assets for the three months ended December 31, 2020 (unaudited) and 2019 (unaudited)	5
	Consolidated Statements of Cash Flows for the three months ended December 31, 2020 (unaudited) and 2019 (unaudited)	6
	Consolidated Schedules of Investments as of December 31, 2020 (unaudited) and September 30, 2020	29
	Notes to Consolidated Financial Statements (unaudited)	48
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	77
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	96
Item 4.	Controls and Procedures	97
Part II. Other Information
Item 1.	Legal Proceedings	97
Item 1A.	Risk Factors	97
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	97
Item 3.	Defaults Upon Senior Securities	97
Item 4.	Mine Safety Disclosures	97
Item 5.	Other Information	97
Item 6.	Exhibits	98

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(In thousands, except share and per share data)


	December 31, 2020		September 30, 2020
	(unaudited)
Assets
Investments, at fair value (amortized cost of $1,025,417 and $891,495, respectively)	$	1,027,502	$	886,851

Cash and cash equivalents	9,095		11,913
Foreign currencies (cost of $136 and $139, respectively)	136		139
Restricted cash and cash equivalents	17,193		12,415
Restricted foreign currencies (cost of $173 and $46, respectively)	179		46
Cash collateral held at broker for forward currency contracts	450		450
Unrealized appreciation on forward currency contracts	—		48
Interest receivable	3,586		3,134
Receivable from investments sold	—		64

Capital call receivable	—		10
Other assets	27		46
Total Assets	$	1,058,168	$	915,116
Liabilities
Debt	$	515,268	$	380,791
Less unamortized debt issuance costs	1,769		1,191
Debt less unamortized debt issuance costs	513,499		379,600


Unrealized depreciation on forward currency contracts	644		—
Interest payable	1,257		1,160


Management and incentive fees payable	4,216		3,889

Accounts payable and accrued expenses	933		850

Total Liabilities	520,549		385,499
Commitments and Contingencies (Note 9)
Net Assets
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2020 and September 30, 2020	—		—
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 35,820,104.376 and 35,388,849.466 shares issued and outstanding as of December 31, 2020 and September 30, 2020, respectively	36		35
Paid in capital in excess of par	536,392		529,938
Distributable earnings (losses)	1,191		(356)
Total Net Assets	537,619		529,617
Total Liabilities and Total Net Assets	$	1,058,168	$	915,116
Number of common shares outstanding	35,820,104.376		35,388,849.466
Net asset value per common share	$	15.01	$	14.97

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Statement of Operations (unaudited)

(In thousands, except share and per share data)


	Three months ended December 31,
	2020		2019
Investment income
Interest income	$	17,370	$	14,511
Dividend income	39		2
Fee income	361		49






Total investment income	17,770		14,562
Expenses
Interest and other debt financing expenses	2,674		3,502
Base management fee	3,330		2,397
Incentive fee	1,936		2,022
Professional fees	307		249
Administrative service fee	344		275
General and administrative expenses	60		15
Total expenses	8,651		8,460
Base management fee waived (Note 4)	(908)		(654)
Incentive fee waived (Note 4)	(142)		(297)

Net expenses	7,601		7,509
Net investment income	10,169		7,053


Net gain (loss) on investment transactions
Net realized gain (loss) from:
Investments	289		1
Foreign currency transactions	10		(12)
Net realized gain (loss) on investment transactions	299		(11)
Net change in unrealized appreciation (depreciation) from:
Investments	6,729		2,571
Forward currency contracts	(692)		(299)
Translation of assets and liabilities in foreign currencies	(94)		(189)
Net change in unrealized appreciation (depreciation) on investment transactions	5,943		2,083
Net gain (loss) on investment transactions	6,242		2,072
Net increase (decrease) in net assets resulting from operations	$	16,411	$	9,125
Per Common Share Data
Basic and diluted earnings per common share	$	0.46	$	0.35
Basic and diluted weighted average common shares outstanding	35,454,475		25,893,806

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Statements of Changes in Net Assets (unaudited)

(In thousands, except share data)



	Common Stock			Paid in Capital in Excess of Par		Distributable Earnings (Losses)		Total Net Assets
	Shares	Par Amount
Balance at September 30, 2019	22,894,689.911	$	23	$	343,396	$	1	$	343,420
Issuance of common stock	6,462,079.629	6		96,925		—		96,931

Net increase in net assets resulting from operations:
Net investment income	—	—		—		7,053		7,053
Net realized gain (loss) on investment transactions	—	—		—		(11)		(11)
Net change in unrealized appreciation (depreciation) on investment transactions	—	—		—		2,083		2,083
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan	358,970.643	1		5,384		—		5,385
Distributions from distributable earnings (losses)	—	—		—		(5,937)		(5,937)
Distributions declared and payable	—	—		—		(3,188)		(3,188)

Total increase (decrease) for the period ended December 31, 2019	6,821,050.272	7		102,309		—		102,316
Balance at December 31, 2019	29,715,740.183	$	30	$	445,705	$	1	$	445,736














Balance at September 30, 2020	35,388,849.466	$	35	$	529,938	$	(356)	$	529,617


Net increase in net assets resulting from operations:
Net investment income	—	—		—		10,169		10,169
Net realized gain (loss) on investment transactions	—	—		—		299		299
Net change in unrealized appreciation (depreciation) on investment transactions	—	—		—		5,943		5,943
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan	431,254.910	1		6,454		—		6,455
Distributions from distributable earnings (losses)	—	—		—		(14,864)		(14,864)


Total increase (decrease) for the period ended December 31, 2020	431,254.910	1		6,454		1,547		8,002
Balance at December 31, 2020	35,820,104.376	$	36	$	536,392	$	1,191	$	537,619

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)

(In thousands)


	Three months ended December 31,
	2020		2019
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations	$	16,411	$	9,125
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Amortization of deferred debt issuance costs	455		205
Accretion of discounts and amortization of premiums	(1,256)		(700)
Net realized (gain) loss on investments	(289)		(1)
Net realized (gain) loss on foreign currency transactions	(10)		12
Net change in unrealized (appreciation) depreciation on investments	(6,729)		(2,571)
Net change in unrealized (appreciation) depreciation on translation of assets and liabilities in foreign currencies	94		189
Net change in unrealized (appreciation) depreciation on forward currency contracts	692		299
Proceeds from (fundings of) revolving loans, net	483		(660)
Fundings of investments	(167,743)		(198,166)
Proceeds from principal payments and sales of portfolio investments	35,455		21,641
PIK interest	(572)		(247)
Changes in operating assets and liabilities:

Interest receivable	(452)		124
Receivable from investments sold	64		—
Other assets	19		30

Interest payable	97		1,468
Management and incentive fees payable	327		815

Accounts payable and accrued expenses	83		105
Accrued trustee fees	—		(12)
Net cash provided by (used in) operating activities	(122,871)		(168,344)



Cash flows from financing activities
Borrowings on debt	160,183		183,143
Repayments of debt	(25,800)		(89,503)
Proceeds from other short-term borrowings	—		18,800
Repayments on other short-term borrowings	—		(32,731)
Capitalized debt issuance costs	(1,033)		(45)

Proceeds from issuance of common shares	10		96,947
Distributions paid	(8,409)		(6,994)
Net cash provided by (used in) financing activities	124,951		169,617
Net change in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies	2,080		1,273
Effect of foreign currency exchange rates	10		(12)
Cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies, beginning of period	24,513		19,917
Cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies, end of period	$	26,603	$	21,178
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	2,122	$	1,829

Distributions declared during the period	14,864		9,125
Supplemental disclosure of non-cash operating and financing activity:
Change in capital call receivable	$	(10)	$	(16)
Stock issued in connection with dividend reinvestment plan	6,455		5,385
Change in distributions payable	—		(3,253)

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (unaudited) - (continued)

(In thousands)

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 December 31,
	2020		2019
Cash and cash equivalents	$	9,095	$	3,452
Foreign currencies (cost of $136 and $205, respectively)	136		206
Restricted cash and cash equivalents	17,193		17,520
Restricted foreign currencies (cost of $173 and $0, respectively)	179		—
Total cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies shown in the Consolidated Statements of Cash Flows	$	26,603	$	21,178

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

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Investments
Non-controlled/non-affiliate company investments
Debt investments
Airlines
Aurora Lux Finco S.A.R.L.(7)(12)	One stop	L + 5.75%	(c)	6.75%	12/2026	$	7,780	$	7,614	1.3	%	$	7,002
Auto Components
Power Stop, LLC	Senior loan	L + 4.50%	(a)	4.65%	10/2025	667		664		0.1		667
Automobiles
JHCC Holdings LLC	One stop	L + 5.50%	(c)	6.50%	09/2025	2,997		2,973		0.6		2,997
JHCC Holdings LLC#	One stop	L + 5.50%	(c)	6.50%	09/2025	1,327		1,288		0.2		1,327
JHCC Holdings LLC#	One stop	L + 5.50%	(c)(f)	7.10%	09/2025	55		54		—		55
MOP GM Holding, LLC	One stop	L + 5.75%	(c)	6.75%	11/2026	9,765		9,645		1.8		9,668
MOP GM Holding, LLC#	One stop	L + 5.75%	(c)(f)	6.85%	11/2026	130		128		—		128
MOP GM Holding, LLC#(5)	One stop	L + 5.75%		N/A(6)	11/2026	—		(22)		—		(18)
Quick Quack Car Wash Holdings, LLC	One stop	L + 6.50%	(a)	7.50%	10/2024	1,673		1,655		0.3		1,656
Quick Quack Car Wash Holdings, LLC#	One stop	L + 6.50%	(a)	7.50%	04/2023	814		805		0.1		806
Quick Quack Car Wash Holdings, LLC#	One stop	L + 6.50%	(a)	7.50%	04/2023	711		703		0.1		704
Quick Quack Car Wash Holdings, LLC#	One stop	L + 6.50%	(a)	7.50%	04/2023	475		470		0.1		470
Quick Quack Car Wash Holdings, LLC#	One stop	L + 6.50%	(a)	7.50%	10/2024	451		431		0.1		431
Quick Quack Car Wash Holdings, LLC#	One stop	L + 6.50%	(a)	7.50%	10/2024	387		383		0.1		383
Quick Quack Car Wash Holdings, LLC#(5)	One stop	L + 6.50%		N/A(6)	04/2023	—		(1)		—		(1)
TWAS Holdings, LLC	One stop	L + 6.75%	(a)	7.75%	12/2026	12,326		12,172		2.3		12,203
TWAS Holdings, LLC#(5)	One stop	L + 6.75%		N/A(6)	12/2026	—		(4)		—		(4)
TWAS Holdings, LLC#(5)	One stop	L + 6.75%		N/A(6)	12/2026	—		(36)		—		(32)
						31,111		30,644		5.7		30,773
Beverages
Fintech Midco, LLC	One stop	L + 5.00%	(c)	6.00%	08/2024	4,872		4,842		0.9		4,872
Fintech Midco, LLC#	One stop	L + 5.00%	(c)	6.00%	08/2024	439		436		0.1		439
Fintech Midco, LLC#(5)	One stop	L + 5.00%		N/A(6)	08/2024	—		(1)		—		—
						5,311		5,277		1.0		5,311
Biotechnology
BIO18 Borrower, LLC	One stop	L + 4.75%	(a)	5.75%	11/2024	1,750		1,735		0.3		1,750
BIO18 Borrower, LLC#	One stop	L + 4.75%	(a)	5.75%	11/2024	1,626		1,613		0.3		1,626
BIO18 Borrower, LLC#	One stop	L + 4.75%	(a)	5.75%	11/2024	105		104		—		105
BIO18 Borrower, LLC#(5)	One stop	L + 4.75%		N/A(6)	11/2024	—		(3)		—		—
						3,481		3,449		0.6		3,481
Chemicals
Inhance Technologies Holdings LLC	One stop	L + 6.00%	(c)	7.00%	07/2024	2,479		2,461		0.5		2,388
Inhance Technologies Holdings LLC#	One stop	L + 6.00%	(c)	7.00%	07/2024	749		745		0.1		722
Inhance Technologies Holdings LLC#	One stop	L + 6.00%	(c)	7.00%	07/2024	40		39		—		36
						3,268		3,245		0.6		3,146
Commercial Services & Supplies
Bazaarvoice, Inc.	One stop	L + 5.75%	(c)	6.75%	02/2024	18,986		18,798		3.5		18,796
Bazaarvoice, Inc.	One stop	L + 5.75%	(c)	6.75%	02/2024	8,313		8,217		1.5		8,230
Bazaarvoice, Inc.#(5)	One stop	L + 5.75%		N/A(6)	02/2024	—		(3)		—		(2)
PT Intermediate Holdings III, LLC	One stop	L + 5.50%	(c)	6.50%	10/2025	23,170		22,881		4.2		22,243
						50,469		49,893		9.2		49,267

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Containers and Packaging
AmerCareRoyal LLC	Senior loan	L + 5.00%	(a)	6.00%	11/2025	$	2,812	$	2,789	0.5	%	$	2,812
AmerCareRoyal LLC(7)	Senior loan	L + 5.00%	(a)	6.00%	11/2025	521		517		0.1		521
Fortis Solutions Group, LLC	Senior loan	L + 5.00%	(a)	6.00%	12/2023	846		829		0.2		829
Fortis Solutions Group LLC	Senior loan	L + 5.00%	(a)	6.00%	12/2023	537		533		0.1		526
Fortis Solutions Group LLC	Senior loan	L + 5.00%	(a)	6.00%	12/2023	214		212		—		209
Fortis Solutions Group LLC	Senior loan	L + 5.00%	(a)	6.00%	12/2023	206		204		—		201
Fortis Solutions Group LLC#(5)	Senior loan	L + 5.00%		N/A(6)	12/2023	—		—		—		(1)
						5,136		5,084		0.9		5,097
Diversified Consumer Services
EWC Growth Partners LLC#	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	03/2026	442		424		0.1		403
EWC Growth Partners LLC	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	03/2026	62		61		—		56
EWC Growth Partners LLC#	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	03/2026	18		18		—		16
Learn-it Systems, LLC	Senior loan	L + 5.00%	(c)	5.00% cash/0.50% PIK	03/2025	757		748		0.1		757
Learn-it Systems, LLC#	Senior loan	L + 5.00%	(c)	5.50%	03/2025	255		249		—		255
Learn-it Systems, LLC#	Senior loan	L + 4.50%		N/A(6)	03/2025	—		—		—		—
Liminex, Inc.	One stop	L + 7.25%	(a)	8.25%	11/2026	10,188		10,089		1.9		10,086
Liminex, Inc.#(5)	One stop	L + 7.25%		N/A(6)	11/2026	—		(2)		—		(2)
Litera Bidco LLC	One stop	L + 5.25%	(a)	6.25%	05/2026	619		613		0.1		591
Litera Bidco LLC	One stop	L + 6.00%	(c)	7.00%	05/2026	302		298		0.1		298
Litera Bidco LLC#	One stop	L + 5.25%	(a)	5.40%	05/2026	277		274		0.1		264
Litera Bidco LLC#	One stop	L + 5.25%	(a)	6.25%	05/2026	277		277		0.1		264
Litera Bidco LLC#(5)	One stop	L + 5.25%		N/A(6)	05/2025	—		—		—		(1)
						13,197		13,049		2.5		12,987
Diversified Financial Services
Institutional Shareholder Services	Senior loan	L + 4.50%	(c)	4.75%	03/2026	6,364		6,317		1.2		6,364
Institutional Shareholder Services#	Senior loan	L + 4.50%	(c)	4.74%	03/2024	95		94		—		95
Sovos Compliance	One stop	L + 4.75%	(a)	5.75%	04/2024	7,513		7,413		1.4		7,513
Sovos Compliance	Second lien	N/A		12.00% PIK	04/2025	3,532		3,480		0.7		3,532
Sovos Compliance	One stop	L + 4.75%	(a)	5.75%	04/2024	1,732		1,700		0.3		1,732
Sovos Compliance#	One stop	L + 4.75%	(a)	5.75%	04/2024	735		730		0.1		735
Sovos Compliance#	Second lien	N/A		12.00% PIK	04/2025	539		530		0.1		539
Sovos Compliance#	One stop	L + 4.75%	(a)	5.75%	04/2024	505		497		0.1		505
Sovos Compliance#	One stop	L + 4.75%	(a)	5.75%	04/2024	328		319		0.1		328
Sovos Compliance#	One stop	L + 4.75%	(a)	5.75%	04/2024	48		47		—		48
Sovos Compliance#(5)	One stop	L + 4.75%		N/A(6)	04/2024	—		(8)		—		—
						21,391		21,119		4.0		21,391

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Electronic Equipment, Instruments and Components
ES Acquisition LLC	Senior loan	L + 5.00%	(c)	6.00%	11/2025	$	15,778	$	15,649	2.9	%	$	15,751
ES Acquisition LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2025	3,336		3,309		0.6		3,331
ES Acquisition, LLC#	Senior loan	L + 5.50%	(c)	6.50%	11/2025	1,918		1,859		0.4		1,955
ES Acquisition, LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2025	1,110		1,101		0.2		1,108
ES Acquisition LLC#	Second lien	L + 5.00%	(c)	6.00%	11/2025	854		847		0.2		853
ES Acquisition LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2025	101		99		—		101
						23,097		22,864		4.3		23,099
Food & Staples Retailing
Captain D's, LLC	Senior loan	L + 4.50%	(c)	5.50%	12/2023	1,193		1,184		0.2		1,193
Captain D's, LLC#	Senior loan	L + 4.50%	(c)	5.50%	12/2023	60		60		—		60
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	567		563		0.1		567
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	290		289		0.1		290
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	228		227		—		228
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	224		223		—		224
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	110		110		—		110
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	110		109		—		110
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	54		54		—		54
Mendocino Farms, LLC#(5)	One stop	L + 8.50%		N/A(6)	06/2023	—		(10)		—		—
Ruby Slipper Cafe LLC, The#	One stop	L + 8.50%	(c)	8.50% cash/1.00% PIK	01/2023	333		332		0.1		280
Ruby Slipper Cafe LLC, The#	One stop	L + 8.50%	(c)	8.50% cash/1.00% PIK	01/2023	117		116		—		98
Ruby Slipper Cafe LLC, The#	One stop	L + 8.50%	(c)	8.50% cash/1.00% PIK	01/2023	20		20		—		17
Wood Fired Holding Corp.	One stop	L + 7.75%	(c)	6.75% cash/2.00% PIK	12/2023	3,182		3,164		0.6		3,087
Wood Fired Holding Corp.#	One stop	L + 7.75%	(c)	6.75% cash/2.00% PIK	12/2023	286		284		0.1		277
Wood Fired Holding Corp.#	One stop	L + 7.75%	(c)	6.75% cash/2.00% PIK	12/2023	101		100		—		98
						6,875		6,825		1.2		6,693
Food Products
FCID Merger Sub, Inc.	One stop	L + 6.00%	(c)	7.00%	12/2026	5,425		5,345		1.0		5,371
FCID Merger Sub, Inc.#(5)	One stop	L + 6.00%		N/A(6)	12/2026	—		(1)		—		(1)
FCID Merger Sub, Inc.#(5)	One stop	L + 6.00%		N/A(6)	12/2026	—		(17)		—		(17)
Flavor Producers, LLC	Senior loan	L + 5.75%	(c)	5.75% cash/1.00% PIK	12/2023	438		434		0.1		404
Flavor Producers, LLC#(5)	Senior loan	L + 4.75%	(c)	N/A(6)	12/2022	—		(1)		—		(1)
MAPF Holdings, Inc.	One stop	L + 6.00%	(c)	7.00%	12/2026	11,642		11,527		2.1		11,526
MAPF Holdings, Inc.#(5)	One stop	L + 6.00%		N/A(6)	12/2026	—		(18)		—		(18)
MAPF Holdings, Inc.#(5)	One stop	L + 6.00%		N/A(6)	12/2026	—		(3)		—		(3)
						17,505		17,266		3.2		17,261

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Health Care Equipment & Supplies
Aspen Medical Products, LLC	One stop	L + 5.00%	(c)	6.00%	06/2025	$	968	$	960	0.2	%	$	968
Aspen Medical Products, LLC	One stop	L + 5.00%	(c)	6.00%	06/2025	62		62		—		62
Aspen Medical Products, LLC#	One stop	L + 5.00%		N/A(6)	06/2025	—		—		—		—
Belmont Instrument, LLC	Senior loan	L + 4.75%	(c)	5.75%	12/2023	1,780		1,766		0.3		1,780
Blades Buyer, Inc.	Senior loan	L + 4.75%	(c)	5.75%	08/2025	1,634		1,621		0.3		1,609
Blades Buyer, Inc.#(5)	Senior loan	L + 4.75%		N/A(6)	08/2025	—		—		—		(1)
Blades Buyer, Inc.#(5)	Senior loan	L + 4.75%		N/A(6)	08/2025	—		(5)		—		(5)
Blue River Pet Care, LLC	One stop	L + 5.00%	(a)	5.15%	07/2026	5,475		5,431		1.0		5,475
Blue River Pet Care, LLC#	One stop	L + 5.00%	(a)	5.15%	07/2026	1,102		1,068		0.2		1,102
Blue River Pet Care, LLC#	One stop	L + 5.00%	(c)	5.24%	08/2025	200		198		0.1		199
CCSL Holdings, LLC	One stop	L + 5.75%	(c)	6.75%	12/2026	6,209		6,132		1.2		6,147
CCSL Holdings, LLC#(5)	One stop	L + 5.75%		N/A(6)	12/2026	—		(3)		—		(2)
CCSL Holdings, LLC#(5)	One stop	L + 5.75%		N/A(6)	12/2026	—		(28)		—		(22)
CMI Parent Inc.	Senior loan	L + 4.25%	(c)	5.25%	08/2025	14,467		14,356		2.6		14,178
CMI Parent Inc.#(5)	Senior loan	L + 4.25%		N/A(6)	08/2025	—		(1)		—		(3)
						31,897		31,557		5.9		31,487

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Health Care Providers & Services
CRH Healthcare Purchaser, Inc.	Senior loan	L + 4.50%	(c)	5.50%	12/2024	$	3,926	$	3,890	0.7	%	$	3,887
CRH Healthcare Purchaser, Inc.#	Senior loan	L + 4.50%	(c)	5.50%	12/2024	1,703		1,688		0.3		1,686
CRH Healthcare Purchaser, Inc.#(5)	Senior loan	L + 4.50%		N/A(6)	12/2024	—		(1)		—		(2)
Elite Dental Partners LLC#	One stop	L + 5.25%	(c)	6.25%	06/2023	1,732		1,708		0.3		1,680
Elite Dental Partners LLC#	One stop	L + 5.25%		N/A(6)	06/2023	—		—		—		—
Encorevet Group LLC#	One stop	L + 5.25%	(c)	6.25%	11/2024	10,542		10,398		1.9		10,393
Encorevet Group LLC#	Senior loan	L + 5.25%	(c)	6.25%	11/2024	4,041		4,010		0.7		4,002
Encorevet Group LLC#	Senior loan	L + 5.25%	(c)	6.25%	11/2024	1,814		1,814		0.3		1,796
Encorevet Group LLC#	Senior loan	L + 5.25%	(c)	6.25%	11/2024	1,129		1,121		0.2		1,118
Encorevet Group LLC#	Senior loan	L + 5.25%	(c)	6.25%	11/2024	938		930		0.2		928
Encorevet Group LLC#	Senior loan	L + 5.25%	(c)	6.25%	11/2024	161		161		—		160
Encorevet Group LLC#(5)	Senior loan	L + 5.25%		N/A(6)	11/2024	—		—		—		(1)
ERG Buyer, LLC	One stop	L + 5.50%	(c)	6.50%	05/2024	2,284		2,264		0.4		1,873
ERG Buyer, LLC#	One stop	P + 4.50%	(f)	7.75%	05/2024	150		149		—		123
Eyecare Services Partners Holdings LLC#	One stop	L + 6.25%	(c)	7.25%	05/2023	3,788		3,719		0.7		3,599
Eyecare Services Partners Holdings LLC#	One stop	L + 6.25%	(c)	7.25%	05/2023	1,128		1,126		0.2		1,072
FYI Optical Acquisitions, Inc. & FYI USA, Inc.#(7)(8)(10)	One stop	L + 5.00%	(j)	5.51%	03/2027	1,417		1,381		0.3		1,465
FYI Optical Acquisitions, Inc. & FYI USA, Inc.#(7)(8)(10)	One stop	L + 5.00%	(j)	5.51%	03/2027	797		790		0.2		813
FYI Optical Acquisitions, Inc. & FYI USA, Inc.#(7)(10)	One stop	L + 5.00%	(c)	6.00%	03/2027	295		281		0.1		293
Krueger-Gilbert Health Physics, LLC#	Senior loan	L + 5.25%	(c)	6.25%	05/2025	475		471		0.1		475
Krueger-Gilbert Health Physics, LLC#	Senior loan	L + 5.25%	(c)	6.25%	05/2025	392		383		0.1		392
Krueger-Gilbert Health Physics, LLC	Senior loan	L + 5.25%	(c)	6.25%	05/2025	128		127		—		128
Krueger-Gilbert Health Physics, LLC#	Senior loan	L + 5.25%	(c)	6.25%	05/2025	25		25		—		25
MD Now Holdings, Inc.	One stop	L + 5.00%	(c)	6.00%	08/2024	2,890		2,873		0.5		2,890
MD Now Holdings, Inc.#	One stop	L + 5.00%	(c)	6.00%	08/2024	242		241		0.1		242
MD Now Holdings, Inc.#(5)	One stop	L + 5.00%		N/A(6)	08/2024	—		(1)		—		—
Midwest Veterinary Partners, LLC#	One stop	L + 5.75%	(c)	6.75%	07/2025	5,107		5,038		0.9		5,056
Midwest Veterinary Partners, LLC#	One stop	L + 5.75%	(c)	6.75%	07/2025	3,187		3,163		0.6		3,156
Midwest Veterinary Partners, LLC#	One stop	L + 5.75%	(c)	6.75%	07/2025	2,953		2,891		0.5		2,902
Midwest Veterinary Partners, LLC#	One stop	L + 5.75%	(c)	6.75%	07/2025	791		785		0.2		783
Midwest Veterinary Partners, LLC	One stop	L + 5.75%	(c)	6.75%	07/2025	247		245		0.1		244
Midwest Veterinary Partners, LLC#	One stop	L + 5.75%	(c)	6.75%	07/2025	47		45		—		45
NVA Holdings, Inc.	Senior loan	L + 3.50%	(a)	3.69%	02/2026	976		968		0.2		976
Summit Behavioral Healthcare, LLC	Senior loan	L + 5.00%	(c)	6.00%	10/2023	2,408		2,391		0.5		2,385
Summit Behavioral Healthcare, LLC#	Senior loan	L + 5.00%	(c)	6.00%	10/2023	50		49		—		49
Summit Behavioral Healthcare, LLC#(5)	Senior loan	L + 5.00%		N/A(6)	10/2023	—		(3)		—		(3)
Veterinary Specialists of North America, LLC	Senior loan	L + 4.25%	(a)	4.40%	04/2025	16,882		16,762		3.1		16,882
Veterinary Specialists of North America, LLC#	Senior loan	L + 4.25%	(a)	4.40%	04/2025	5,064		5,028		0.9		5,064
Veterinary Specialists of North America, LLC#	Senior loan	L + 4.25%	(a)	4.40%	04/2025	1,228		1,220		0.2		1,228
Veterinary Specialists of North America, LLC#	Senior loan	L + 4.25%	(a)	4.40%	04/2025	618		614		0.1		618
Veterinary Specialists of North America, LLC#	Senior loan	L + 4.25%	(a)	4.40%	04/2025	500		496		0.1		500
						80,055		79,240		14.7		78,922

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Health Care Technology
Connexin Software, Inc.	One stop	L + 8.50%	(a)	9.50%	02/2024	$	1,261	$	1,252	0.2	%	$	1,261
Connexin Software, Inc.#	One stop	L + 8.50%		N/A(6)	02/2024	—		—		—		—
HealthEdge Software, Inc.#	One stop	L + 6.25%	(a)	7.25%	04/2026	3,334		3,301		0.6		3,259
HealthEdge Software, Inc.#	One stop	L + 6.25%	(a)	7.25%	04/2026	2,185		2,185		0.4		2,136
HealthEdge Software, Inc.	One stop	L + 6.25%	(a)	7.25%	04/2026	1,559		1,528		0.3		1,524
HealthEdge Software, Inc.#(5)	One stop	L + 6.25%		N/A(6)	04/2026	—		(1)		—		(1)
HSI Halo Acquisition, Inc.	One stop	L + 5.75%	(c)	6.75%	08/2026	1,533		1,502		0.3		1,517
HSI Halo Acquisition, Inc.	One stop	L + 5.75%	(c)	6.75%	08/2026	532		527		0.1		527
HSI Halo Acquisition, Inc.#	One stop	L + 5.75%	(c)	6.75%	08/2026	311		307		0.1		308
HSI Halo Acquisition, Inc.#	One stop	L + 5.75%	(c)	6.75%	09/2025	11		10		—		10
HSI Halo Acquisition, Inc.#(5)	One stop	L + 5.75%		N/A(6)	08/2026	—		(4)		—		(4)
Nextech Holdings, LLC	One stop	L + 5.50%	(c)	5.71%	06/2025	17,806		17,673		3.2		17,094
Nextech Holdings, LLC#	One stop	L + 5.50%	(c)	5.72%	06/2025	722		716		0.1		693
Nextech Holdings, LLC#(5)	One stop	L + 5.50%		N/A(6)	06/2025	—		(2)		—		(12)
Nextech Holdings, LLC#(5)	One stop	L + 5.50%		N/A(6)	06/2025	—		(1)		—		(6)
Qgenda Intermediate Holdings, LLC	One stop	L + 5.50%	(c)	6.50%	06/2025	5,767		5,710		1.1		5,709
Qgenda Intermediate Holdings, LLC	One stop	L + 5.50%	(c)	6.50%	06/2025	5,077		5,077		0.9		5,026
Qgenda Intermediate Holdings, LLC	One stop	L + 5.50%	(c)	6.50%	06/2025	2,456		2,456		0.4		2,432
Qgenda Intermediate Holdings, LLC#(5)	One stop	L + 5.50%		N/A(6)	06/2025	—		—		—		(1)
Transaction Data Systems, Inc.	One stop	L + 5.38%	(c)	6.38%	06/2021	14,073		14,056		2.6		14,073
Transaction Data Systems, Inc.#	One stop	L + 5.38%	(c)	6.38%	06/2021	23		23		—		23
						56,650		56,315		10.3		55,568
Hotels, Restaurants & Leisure
BJH Holdings III Corp.	One stop	L + 5.25%	(c)	6.25%	08/2025	18,843		18,598		3.5		18,843
BJH Holdings III Corp.#(5)	One stop	L + 5.25%		N/A(6)	08/2025	—		(6)		—		—
CR Fitness Holdings, LLC	Senior loan	L + 4.25%	(c)	5.25%	07/2025	315		312		0.1		293
CR Fitness Holdings, LLC#	Senior loan	L + 4.25%	(a)	5.25%	07/2025	105		103		—		82
CR Fitness Holdings, LLC#	Senior loan	L + 4.25%	(a)(c)	5.25%	07/2025	37		37		—		35
Davidson Hotel Company, LLC	One stop	L + 6.75%	(a)(c)	6.25% cash/1.50% PIK	07/2024	1,736		1,718		0.2		1,215
Davidson Hotel Company, LLC#	One stop	L + 6.75%	(a)(c)	6.25% cash/1.50% PIK	07/2024	423		421		0.1		296
Davidson Hotel Company, LLC#(5)	One stop	L + 6.75%		N/A(6)	07/2024	—		(1)		—		(15)
Davidson Hotel Company, LLC#(5)	One stop	L + 6.75%		N/A(6)	07/2024	—		(7)		—		—
EOS Fitness Opco Holdings, LLC	One stop	L + 5.25%	(c)	6.25%	01/2025	1,733		1,722		0.3		1,560
EOS Fitness Opco Holdings, LLC#	One stop	L + 5.25%	(c)	6.25%	01/2025	371		366		0.1		334
EOS Fitness Opco Holdings, LLC#	One stop	L + 5.25%	(c)	6.25%	01/2025	60		60		—		54
Planet Fit Indy 10 LLC	One stop	L + 5.25%	(c)	6.25%	07/2025	13,908		13,749		2.2		11,961
Planet Fit Indy 10 LLC#	One stop	L + 5.25%	(c)	6.25%	07/2025	3,627		3,592		0.6		3,119
Planet Fit Indy 10 LLC#	One stop	L + 5.25%	(c)	6.25%	07/2025	1,969		1,942		0.3		1,694
Planet Fit Indy 10 LLC#	One stop	L + 5.25%	(c)	6.25%	07/2025	100		99		—		86
SSRG Holdings, LLC	One stop	L + 5.25%	(c)	6.25%	11/2025	6,400		6,348		1.2		6,272
SSRG Holdings, LLC#	One stop	L + 5.25%	(c)	6.25%	11/2025	55		54		—		54
Sunshine Sub, LLC	One stop	L + 4.75%	(c)	5.75%	05/2024	1,969		1,947		0.3		1,851
Sunshine Sub, LLC#	One stop	L + 4.75%	(c)	5.75%	05/2024	1,928		1,906		0.3		1,812
Sunshine Sub, LLC#(5)	One stop	L + 4.75%		N/A(6)	05/2024	—		(1)		—		(6)
Tropical Smoothie Cafe Holdings, LLC	Senior loan	L + 5.50%	(a)(b)(c)	6.50%	09/2026	6,748		6,684		1.3		6,748
Tropical Smoothie Cafe Holdings, LLC#	Senior loan	L + 5.50%	(a)	6.50%	09/2026	15		14		—		15
Velvet Taco Holdings, Inc.#	One stop	L + 11.00%	(c)	8.00% cash/4.00% PIK	03/2026	1,343		1,330		0.2		1,343
Velvet Taco Holdings, Inc.#	One stop	L + 8.00%	(b)(c)(e)	8.00% cash/1.00% PIK	03/2026	120		119		—		108
Velvet Taco Holdings, Inc.#	One stop	L + 7.00%		N/A(6)	03/2026	—		—		—		—
						61,805		61,106		10.7		57,754

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Household Durables
Groundworks LLC#	Senior loan	L + 6.25%	(c)	7.25%	01/2026	$	1,404	$	1,386	0.3	%	$	1,383
Groundworks LLC	Senior loan	L + 6.25%	(c)	7.25%	01/2026	223		220		—		219
Groundworks LLC#	Senior loan	L + 6.25%	(c)	7.25%	01/2026	112		107		—		107
Groundworks LLC#(5)	Senior loan	L + 6.25%		N/A(6)	01/2026	—		—		—		(1)
						1,739		1,713		0.3		1,708
Household Products
WU Holdco, Inc.	One stop	L + 5.25%	(c)	6.25%	03/2026	1,067		1,059		0.2		1,067
WU Holdco, Inc. #	One stop	L + 5.25%	(c)	6.25%	03/2026	164		163		—		164
WU Holdco, Inc. #	One stop	L + 5.25%	(c)	5.50%	03/2025	5		4		—		4
						1,236		1,226		0.2		1,235
Industrial Conglomerates
Arch Global CCT Holdings Corp.	Senior loan	L + 4.75%	(c)	5.00%	04/2026	1,495		1,489		0.3		1,465
Arch Global CCT Holdings Corp.#(5)	Senior loan	L + 4.75%		N/A(6)	04/2025	—		—		—		(1)
Arch Global CCT Holdings Corp.#(5)	Senior loan	L + 4.75%		N/A(6)	04/2026	—		—		—		(2)
Madison Safety & Flow LLC	Senior loan	L + 4.00%	(a)	4.15%	03/2025	181		181		—		179
Madison Safety & Flow LLC#	Senior loan	L + 4.00%		N/A(6)	03/2025	—		—		—		—
Specialty Measurement Bidco Limited#(7)(8)(9)	One stop	L + 6.25%	(c)	7.25%	11/2027	3,189		3,102		0.6		3,180
Specialty Measurement Bidco Limited#(7)(9)	One stop	L + 6.25%	(c)	7.25%	11/2027	3,185		3,099		0.6		3,098
Specialty Measurement Bidco Limited#(5)(7)(8)(9)	One stop	L + 6.25%	(c)	N/A(6)	11/2027	—		(21)		—		(44)
						8,050		7,850		1.5		7,875
Insurance
Higginbotham Insurance Agency, Inc.	One stop	L + 5.75%	(c)	6.50%	11/2026	1,446		1,425		0.3		1,424
Higginbotham Insurance Agency, Inc.#(5)	One stop	L + 5.75%		N/A(6)	11/2026	—		(3)		—		(3)
High Street Insurance Partners, Inc.#	Senior loan	L + 6.25%	(c)	7.25%	12/2025	345		337		0.1		345
High Street Insurance Partners, Inc.#	Senior loan	L + 6.25%	(d)	7.25%	12/2025	80		77		—		80
Integrity Marketing Acquisition, LLC#	Senior loan	L + 5.50%	(c)	6.50%	08/2025	929		923		0.2		929
Integrity Marketing Acquisition, LLC	Senior loan	L + 5.50%	(c)	6.50%	08/2025	362		358		0.1		362
Integrity Marketing Acquisition, LLC#	Senior loan	L + 5.50%	(c)(d)	6.50%	08/2025	318		316		0.1		318
Integrity Marketing Acquisition, LLC#	Senior loan	L + 5.50%	(c)(d)	6.50%	08/2025	192		191		—		192
Integrity Marketing Acquisition, LLC#	Senior loan	L + 5.50%		N/A(6)	08/2025	—		—		—		—
J.S. Held Holdings, LLC	One stop	L + 6.00%	(c)	7.00%	07/2025	18,585		18,248		3.5		18,585
J.S. Held Holdings, LLC#	One stop	P + 5.00%	(f)	8.25%	07/2025	36		32		—		36
J.S. Held Holdings, LLC#(5)	One stop	L + 6.00%		N/A(6)	07/2025	—		(2)		—		—
Majesco	One stop	L + 7.75%	(c)	8.75%	09/2027	4,890		4,796		0.9		4,890
Majesco#(5)	One stop	L + 7.75%		N/A(6)	09/2026	—		(3)		—		—
Orchid Underwriters Agency, LLC	Senior loan	L + 4.50%	(c)	5.50%	12/2024	792		787		0.1		792
Orchid Underwriters Agency, LLC#	Senior loan	L + 4.25%	(d)	5.25%	12/2024	221		219		—		221
Orchid Underwriters Agency, LLC#	Senior loan	L + 4.25%		N/A(6)	12/2024	—		—		—		—
RSC Acquisition, Inc.	One stop	L + 5.50%	(c)	6.50%	10/2026	12,431		12,203		2.3		12,431
RSC Acquisition, Inc.	One stop	L + 5.50%	(c)	6.50%	10/2026	623		599		0.1		623
RSC Acquisition, Inc.#	One stop	L + 5.50%	(c)	6.50%	10/2026	149		51		—		149
RSC Acquisition, Inc.#(5)	One stop	L + 5.50%		N/A(6)	10/2026	—		(1)		—		—
Sunstar Insurance Group, LLC	Senior loan	L + 5.50%	(c)	6.50%	10/2026	252		247		—		247
Sunstar Insurance Group, LLC#	Senior loan	L + 5.50%		N/A(6)	10/2026	—		—		—		—
Sunstar Insurance Group, LLC#(5)	Senior loan	L + 5.50%		N/A(6)	10/2026	—		(3)		—		(3)
						41,651		40,797		7.7		41,618

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Internet & Catalog Retail
AutoQuotes, LLC	One stop	L + 6.00%	(c)	7.00%	11/2024	$	2,326	$	2,311	0.4	%	$	2,140
AutoQuotes, LLC#(5)	One stop	L + 6.00%		N/A(6)	11/2024	—		—		—		(4)
						2,326		2,311		0.4		2,136
IT Services
Acquia, Inc.	One stop	L + 7.00%	(c)	8.00%	10/2025	1,804		1,790		0.4		1,804
Acquia, Inc.#	One stop	L + 7.00%		N/A(6)	10/2025	—		—		—		—
Appriss Holdings, Inc.	One stop	L + 5.25%	(c)	5.50%	05/2026	8,541		8,411		1.6		8,502
Appriss Holdings, Inc.#(5)	One stop	L + 5.25%		N/A(6)	05/2025	—		(3)		—		(1)
Arctic Wolf Networks, Inc. and Arctic Wolf Networks Canada, Inc.	One stop	L + 7.50%	(b)	8.50% cash/1.00% PIK	08/2025	1,709		1,647		0.3		1,743
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.#	One stop	L + 7.50%		N/A(6)	08/2025	—		—		—		—
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.#(5)	One stop	L + 7.50%		N/A(6)	08/2025	—		(1)		—		—
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.#(5)	One stop	L + 7.50%		N/A(6)	08/2025	—		(5)		—		—
Centrify Corporation	One stop	L + 8.25%	(c)	9.25%	08/2024	5,217		5,169		1.0		5,217
Centrify Corporation#	One stop	P + 7.25%	(f)	10.50%	08/2024	100		99		—		100
E2open, LLC	One stop	L + 5.75%	(c)	6.75%	11/2024	22,654		22,396		4.2		22,654
E2open, LLC#	One stop	L + 5.75%	(a)(d)	6.75%	11/2024	185		182		—		185
Episerver, Inc.#(7)(8)	One stop	L + 6.00%	(c)(d)	6.00%	10/2024	4,714		4,674		0.9		4,935
Episerver, Inc.#	One stop	L + 5.75%	(c)(d)	6.75%	10/2024	2,733		2,710		0.5		2,733
Episerver, Inc.#(5)	One stop	L + 5.75%		N/A(6)	10/2024	—		(2)		—		—
Infinisource, Inc.	One stop	L + 4.50%	(c)	5.50%	10/2026	10,725		10,636		2.0		10,725
Infinisource, Inc.#	One stop	L + 4.50%	(c)	5.50%	10/2026	3,926		3,884		0.7		3,926
Infinisource, Inc.#	One stop	L + 4.50%	(c)	5.50%	10/2026	1,777		1,763		0.3		1,777
Infinisource, Inc.#(5)	One stop	L + 4.50%		N/A(6)	10/2026	—		(1)		—		—
PCS Intermediate II Holdings, LLC	One stop	L + 5.25%	(c)	6.25%	01/2026	4,907		4,865		0.9		4,907
PCS Intermediate II Holdings, LLC#(5)	One stop	L + 5.50%		N/A(6)	01/2026	—		(1)		—		—
Recordxtechnologies, LLC	One stop	L + 5.50%	(c)	6.50%	12/2025	18,652		18,459		3.4		18,093
Recordxtechnologies, LLC#	One stop	L + 5.50%	(c)	6.50%	12/2025	1,701		1,681		0.3		1,627
Recordxtechnologies, LLC#	One stop	L + 5.50%	(c)	6.50%	12/2025	100		98		—		94
Red Dawn SEI Buyer, Inc.	Senior loan	L + 4.25%	(c)	5.25%	11/2025	13,540		13,402		2.5		13,261
Red Dawn SEI Buyer, Inc.#(5)	Senior loan	L + 4.25%		N/A(6)	11/2025	—		(3)		—		(5)
Red Dawn SEI Buyer, Inc.#(5)	Senior loan	L + 4.25%		N/A(6)	11/2025	—		(20)		—		(50)
Red Dawn SEI Buyer, Inc.#(5)(7)(8)	Senior loan	L + 4.50%		N/A(6)	11/2025	—		—		—		(94)
Red Dawn SEI Buyer, Inc.#(5)	Senior loan	L + 4.50%		N/A(6)	11/2025	—		—		—		(22)
						102,985		101,830		19.0		102,111

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Leisure Products
WBZ Investment LLC	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	09/2024	$	1,431	$	1,423	0.2	%	$	1,288
WBZ Investment LLC#	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	09/2024	475		472		0.1		427
WBZ Investment LLC#	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	09/2024	330		328		0.1		297
WBZ Investment LLC#	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	09/2024	169		168		—		152
WBZ Investment LLC#	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	09/2024	40		40		—		35
						2,445		2,431		0.4		2,199
Machinery
Blackbird Purchaser, Inc.	Senior loan	L + 4.50%	(c)(f)	4.75%	04/2026	5,046		4,968		0.9		4,896
Blackbird Purchaser, Inc. #	Senior loan	L + 4.50%	(c)	4.74%	04/2024	14		13		—		12
Chase Industries, Inc.	Senior loan	L + 7.00%	(d)	6.50% cash/1.50% PIK	05/2025	1,956		1,935		0.3		1,587
Chase Industries, Inc.#	Senior loan	L + 7.00%	(d)	6.50% cash/1.50% PIK	05/2025	339		335		0.1		275
Chase Industries, Inc.#	Senior loan	L + 7.00%	(d)	6.50% cash/1.50% PIK	05/2023	87		86		—		65
						7,442		7,337		1.3		6,835
Marine
Veson Nautical LLC	One stop	L + 5.50%	(a)	6.50%	11/2025	4,239		4,198		0.8		4,197
Veson Nautical LLC#(5)	One stop	L + 5.50%		N/A(6)	11/2025	—		(1)		—		(1)
						4,239		4,197		0.8		4,196
Oil, Gas & Consumable Fuels
3ES Innovation, Inc.(7)(10)	One stop	L + 5.75%	(c)	6.75%	05/2025	3,727		3,666		0.7		3,652
3ES Innovation, Inc.#(5)(7)(10)	One stop	L + 5.75%		N/A(6)	05/2025	—		(1)		—		(2)
Drilling Info Holdings, Inc.	Senior loan	L + 4.50%	(a)	4.65%	07/2025	12,051		11,771		2.3		11,972
Drilling Info Holdings, Inc.	Senior loan	L + 4.25%	(a)	4.40%	07/2025	9,346		9,257		1.7		9,189
Drilling Info Holdings, Inc.#	Senior loan	L + 4.25%	(a)	4.40%	07/2023	40		39		—		38
Drilling Info Holdings, Inc.#	Senior loan	L + 4.50%	(a)	4.65%	07/2023	35		32		—		34
Drilling Info Holdings, Inc.#(5)	Senior loan	L + 4.25%		N/A(6)	07/2025	—		(4)		—		(8)
Project Power Buyer, LLC	One stop	L + 6.25%	(c)	7.25%	05/2026	3,890		3,848		0.7		3,890
Project Power Buyer, LLC#(5)	One stop	L + 6.25%		N/A(6)	05/2025	—		(1)		—		—
						29,089		28,607		5.4		28,765
Paper & Forest Products
Messenger, LLC	One stop	L + 6.50%	(c)(f)	7.50%	08/2023	2,017		2,003		0.4		1,936
Messenger, LLC#(5)	One stop	L + 6.50%		N/A(6)	08/2023	—		—		—		(1)
						2,017		2,003		0.4		1,935
Pharmaceuticals
ACP Ulysses Buyer, Inc.	Senior loan	L + 5.00%	(a)	6.00%	02/2026	4,866		4,824		0.9		4,866

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Professional Services
Net Health Acquisition Corp.	One stop	L + 5.50%	(c)	6.50%	12/2023	$	864	$	856	0.2	%	$	856
Net Health Acquisition Corp.	One stop	L + 5.50%	(c)	6.50%	12/2023	744		737		0.1		736
Net Health Acquisition Corp.	One stop	L + 5.50%	(c)	6.50%	12/2023	467		462		0.1		462
Net Health Acquisition Corp.	One stop	L + 5.50%	(c)	6.50%	12/2023	111		110		—		109
Net Health Acquisition Corp.#(5)	One stop	L + 5.50%		N/A(6)	12/2023	—		(1)		—		(1)
Nexus Brands Group, Inc.	One stop	L + 6.00%	(c)	7.00%	11/2023	587		584		0.1		564
Nexus Brands Group, Inc.	One stop	L + 6.00%	(c)	7.00%	11/2023	511		507		0.1		490
Nexus Brands Group, Inc.#	One stop	L + 6.00%	(c)	7.00%	11/2023	292		291		0.1		281
Nexus Brands Group, Inc.#	One stop	L + 6.00%	(c)	7.00%	11/2023	211		211		—		203
Nexus Brands Group, Inc.#	One stop	L + 6.00%	(c)	7.00%	11/2023	80		79		—		78
Nexus Brands Group, Inc.#	One stop	L + 6.00%	(c)	7.00%	11/2023	51		50		—		50
Nexus Brands Group, Inc.#	One stop	L + 6.00%	(c)	7.00%	11/2023	10		9		—		6
Nexus Brands Group, Inc.#	One stop	L + 6.00%		N/A(6)	11/2023	—		—		—		—
PlanSource Holdings, Inc.	One stop	L + 6.25%	(d)	7.25%	04/2025	2,818		2,796		0.5		2,818
PlanSource Holdings, Inc. #(5)	One stop	L + 6.25%		N/A(6)	04/2025	—		(1)		—		—
						6,746		6,690		1.2		6,652

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Real Estate Management & Development
Property Brands, Inc.	One stop	L + 5.75%	(d)	6.75%	01/2024	$	2,772	$	2,754	0.5	%	$	2,772
Property Brands, Inc.	One stop	L + 5.75%	(d)	6.75%	01/2024	2,589		2,550		0.5		2,589
Property Brands, Inc.	One stop	L + 5.75%	(d)	6.75%	01/2024	1,119		1,112		0.2		1,119
Property Brands, Inc.#	One stop	L + 5.75%	(d)	6.75%	01/2024	913		907		0.2		913
Property Brands, Inc.#	One stop	L + 5.75%	(d)	6.75%	01/2024	394		391		0.1		394
Property Brands, Inc.#	One stop	L + 5.75%	(d)	6.75%	01/2024	335		333		0.1		335
Property Brands, Inc.#	One stop	L + 5.75%	(d)	6.75%	01/2024	333		331		0.1		333
Property Brands, Inc.#	One stop	L + 5.75%	(d)	6.75%	01/2024	263		261		—		263
Property Brands, Inc.#	One stop	L + 5.75%	(d)	6.75%	01/2024	139		138		—		139
Property Brands, Inc.#	One stop	L + 5.75%	(d)	6.75%	01/2024	100		99		—		100
Property Brands, Inc.#(5)	One stop	L + 5.75%		N/A(6)	01/2024	—		(6)		—		—
MRI Software LLC	One stop	L + 5.50%	(c)	6.50%	02/2026	14,631		14,530		2.7		14,631
MRI Software LLC	One stop	L + 5.50%	(c)	6.50%	02/2026	1,838		1,796		0.3		1,838
MRI Software LLC#(5)	One stop	L + 5.50%		N/A(6)	02/2026	—		(2)		—		—
MRI Software LLC#(5)	One stop	L + 5.50%		N/A(6)	02/2026	—		(3)		—		—
MRI Software LLC#(5)	One stop	L + 5.50%		N/A(6)	02/2026	—		(3)		—		—
						25,426		25,188		4.7		25,426
Road & Rail
Internet Truckstop Group LLC	One stop	L + 5.50%	(c)	6.50%	04/2025	8,016		7,874		1.5		8,016
Internet Truckstop Group LLC#(5)	One stop	L + 5.50%		N/A(6)	04/2025	—		(2)		—		—
						8,016		7,872		1.5		8,016

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Software
Apptio, Inc.	One stop	L + 7.25%	(d)	8.25%	01/2025	$	12,605	$	12,435	2.4	%	$	12,605
Apptio, Inc. #(5)	One stop	L + 7.25%		N/A(6)	01/2025	—		(1)		—		—
Astute Holdings, Inc.	One stop	L + 6.50%	(c)	7.50%	04/2025	2,773		2,747		0.5		2,773
Astute Holdings, Inc. #	One stop	L + 6.50%	(c)	7.50%	04/2025	1,158		1,147		0.2		1,158
Astute Holdings, Inc. #(5)	One stop	L + 6.50%		N/A(6)	04/2025	—		(1)		—		—
Axiom Merger Sub Inc.#	One stop	L + 5.25%	(c)(d)	6.25%	04/2026	1,150		1,135		0.2		1,161
Axiom Merger Sub Inc.#(7)(8)	One stop	E + 5.50%	(g)	5.50%	04/2026	479		473		0.1		516
Axiom Merger Sub Inc.#	One stop	L + 5.25%	(d)	6.25%	04/2026	15		14		—		15
Azul Systems, Inc.#	Senior loan	L + 4.50%	(c)	5.50%	04/2027	9,492		9,407		1.8		9,492
Azul Systems, Inc.#(5)	Senior loan	L + 4.50%		N/A(6)	04/2026	—		(1)		—		—
Bearcat Buyer, Inc.	Senior loan	L + 4.25%	(c)	5.25%	07/2026	577		571		0.1		558
Bearcat Buyer, Inc.#	Senior loan	L + 4.25%	(c)	5.25%	07/2026	205		203		—		198
Bearcat Buyer, Inc.	Senior loan	L + 4.25%	(c)	5.25%	07/2026	153		151		—		148
Bearcat Buyer, Inc.#	Senior loan	L + 4.25%	(c)(f)	5.46%	07/2024	3		3		—		3
Bullhorn, Inc.	One stop	L + 5.75%	(c)	6.75%	09/2026	13,511		13,286		2.5		13,621
Bullhorn, Inc.#(7)(8)	One stop	L + 6.00%	(h)	6.02%	09/2026	2,411		2,370		0.5		2,659
Bullhorn, Inc.#(7)(8)	One stop	L + 5.75%	(c)	5.75%	09/2026	968		951		0.2		1,061
Bullhorn, Inc. #	One stop	L + 5.75%	(c)	6.75%	09/2026	664		653		0.1		669
Bullhorn, Inc.	One stop	L + 5.75%	(c)	6.75%	09/2026	608		594		0.1		613
Bullhorn, Inc.#	One stop	L + 5.75%	(c)	6.75%	09/2026	529		520		0.1		533
Bullhorn, Inc.#(5)	One stop	L + 5.75%		N/A(6)	09/2026	—		(5)		—		2
Bullhorn, Inc.#(5)	One stop	L + 5.75%		N/A(6)	09/2026	—		(24)		—		12
Calabrio, Inc.	One stop	L + 6.50%	(c)	7.50%	06/2025	22,076		21,913		4.1		22,076
Calabrio, Inc. #(5)	One stop	L + 6.50%		N/A(6)	06/2025	—		(1)		—		—
Cloudbees, Inc.#	One stop	L + 9.00%	(c)	9.50% cash/0.50% PIK	05/2023	847		837		0.2		847
Cloudbees, Inc.	One stop	L + 9.00%	(c)	9.50% cash/0.50% PIK	05/2023	704		690		0.1		704
Cloudbees, Inc.#	One stop	L + 9.00%	(c)	9.50% cash/0.50% PIK	05/2023	497		496		0.1		497
Cloudbees, Inc.#	One stop	L + 9.00%		N/A(6)	05/2023	—		—		—		—
Confluence Technologies, Inc.	One stop	L + 5.75%	(a)	6.75%	03/2024	8,394		8,351		1.6		8,394
Confluence Technologies, Inc.#	One stop	L + 5.75%	(a)	6.75%	03/2024	20		19		—		20
Convercent, Inc.	One stop	L + 9.00%	(c)	8.25% cash/2.75% PIK	12/2024	711		697		0.1		723
Convercent, Inc.#	Subordinated debt	N/A		4.00%	02/2021	35		35		—		47
Convercent, Inc.#	One stop	L + 9.00%	(c)	N/A(6)	12/2024	—		—		—		1
Convercent, Inc.#(5)	One stop	L + 9.00%		N/A(6)	12/2024	—		(1)		—		—
Digital Guardian, Inc.#	One stop	L + 9.50%	(c)	7.50% cash/3.00% PIK	06/2023	1,711		1,704		0.3		1,814
Digital Guardian, Inc.#	Subordinated debt	N/A		8.00% PIK	06/2023	2		1		—		2
Digital Guardian, Inc.#	One stop	L + 8.00%		N/A(6)	06/2023	—		—		—		1
Diligent Corporation	One stop	L + 6.25%	(c)	7.25%	08/2025	27,984		27,580		5.2		27,984
Diligent Corporation#(5)	One stop	L + 6.25%		N/A(6)	08/2025	—		(10)		—		—
Diligent Corporation#(5)	One stop	L + 6.25%		N/A(6)	08/2025	—		(54)		—		—

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Software - (continued)
GS Acquisitionco, Inc.	One stop	L + 5.75%	(c)	6.75%	05/2024	$	15,521	$	15,408	2.9	%	$	15,288
GS Acquisitionco, Inc.#	One stop	L + 5.75%	(c)	6.75%	05/2024	4,371		4,339		0.8		4,306
GS Acquisitionco, Inc.	One stop	L + 5.75%	(d)	6.75%	05/2024	2,789		2,748		0.5		2,747
GS Acquisitionco, Inc.#	One stop	L + 5.75%	(c)	6.75%	05/2024	1,144		1,135		0.2		1,127
GS Acquisitionco, Inc.#	One stop	L + 5.75%	(c)	6.75%	05/2024	1,055		1,047		0.2		1,039
GS Acquisitionco, Inc.#	One stop	L + 5.75%	(c)	6.75%	05/2024	661		656		0.1		651
GS Acquisitionco, Inc.#	One stop	L + 5.75%	(d)	6.75%	05/2024	64		63		—		62
GS Acquisitionco, Inc.#(5)	One stop	L + 5.75%		N/A(6)	05/2024	—		(1)		—		(3)
GS Acquisitionco, Inc.#(5)	One stop	L + 5.75%		N/A(6)	05/2024	—		(12)		—		(24)
ICIMS, Inc.	One stop	L + 6.50%	(c)	7.50%	09/2024	3,240		3,202		0.6		3,240
ICIMS, Inc.	One stop	L + 6.50%	(c)	7.50%	09/2024	1,065		1,057		0.2		1,065
ICIMS, Inc.	One stop	L + 6.50%	(c)	7.50%	09/2024	621		615		0.1		621
ICIMS, Inc.#	One stop	L + 6.50%	(c)	7.50%	09/2024	44		44		—		44
Impartner, Inc.	One stop	L + 9.50%	(c)	9.30% cash/2.00% PIK	08/2025	1,161		1,154		0.2		1,203
Impartner, Inc.#(5)	One stop	L + 9.50%		N/A(6)	08/2025	—		(1)		—		7
Impartner, Inc.#	One stop	L + 9.50%		N/A(6)	08/2025	—		—		—		—
Infogix, Inc.	One stop	L + 6.00%	(c)	7.00%	04/2024	1,453		1,449		0.3		1,453
Infogix, Inc.	One stop	L + 6.00%	(c)	7.00%	04/2024	228		226		0.1		228
Infogix, Inc.#	One stop	L + 6.00%	(c)	7.00%	04/2024	45		45		—		45
Instructure, Inc.	One stop	L + 7.00%	(c)	8.00%	03/2026	28,778		28,464		5.4		28,778
Instructure, Inc.#(5)	One stop	L + 7.00%		N/A(6)	03/2026	—		(2)		—		—
Integral Ad Science, Inc.	One stop	L + 7.25%	(c)	7.00% cash/1.25% PIK	07/2024	3,566		3,526		0.7		3,566
Integral Ad Science, Inc.#(5)	One stop	L + 6.00%		N/A(6)	07/2023	—		(1)		—		(1)
Integration Appliance, Inc.	One stop	L + 7.25%	(c)	8.25%	08/2023	14,125		14,051		2.6		14,125
Integration Appliance, Inc.#	One stop	L + 7.25%	(d)	8.25%	08/2023	1		1		—		1
Invoice Cloud, Inc.#	One stop	L + 6.50%	(c)	4.25% cash/3.25% PIK	02/2024	1,123		1,116		0.2		1,123
Invoice Cloud, Inc.#	One stop	L + 6.50%	(c)	4.25% cash/3.25% PIK	02/2024	917		912		0.2		917
Invoice Cloud, Inc.#(5)	One stop	L + 6.00%		N/A(6)	02/2024	—		—		—		(1)
Juvare, LLC	One stop	L + 6.25%	(c)	7.25%	10/2026	3,012		2,975		0.6		2,974
Juvare, LLC#	One stop	P + 5.25%	(f)	8.50%	10/2026	382		373		0.1		373
Juvare, LLC#(5)	One stop	L + 6.25%		N/A(6)	04/2026	—		(1)		—		(1)
Kaseya Traverse Inc	One stop	L + 7.00%	(c)	5.00% cash/3.00% PIK	05/2025	14,664		14,447		2.7		14,664
Kaseya Traverse Inc#	One stop	L + 7.00%	(c)	5.00% cash/3.00% PIK	05/2025	1,726		1,709		0.3		1,726
Kaseya Traverse Inc#	One stop	L + 6.50%	(b)	7.50%	05/2025	51		50		—		50
Kaseya Traverse Inc#(5)	One stop	L + 7.00%		N/A(6)	05/2025	—		(15)		—		—
Mindbody, Inc.#	One stop	L + 8.50%	(c)	8.00% cash/1.50% PIK	02/2025	11,795		11,714		2.2		11,559
Mindbody, Inc.#(5)	One stop	L + 8.00%		N/A(6)	02/2025	—		(1)		—		(4)
Ministry Brands, LLC	Senior loan	L + 4.00%	(b)	5.00%	12/2022	221		221		0.1		217
Ministry Brands, LLC#	Senior loan	L + 4.00%	(b)	5.00%	12/2022	130		130		—		127
Ministry Brands, LLC	Senior loan	L + 4.00%	(b)	5.00%	12/2022	127		126		—		124
mParticle, Inc.	One stop	L + 9.75%	(c)	7.50% cash/3.25% PIK	09/2025	1,261		1,246		0.2		1,261

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Software - (continued)
mParticle, Inc.#	One stop	L + 9.75%		N/A(6)	09/2025	$	—	$	—	—	%	$	—
Namely, Inc.	One stop	L + 7.50%	(c)	8.25% cash/1.25% PIK	06/2024	2,125		1,995		0.4		2,082
Namely, Inc.#	One stop	L + 7.50%	(c)	8.25% cash/1.25% PIK	06/2024	800		753		0.2		774
Namely, Inc.#	One stop	L + 7.50%	(a)	8.25% cash/1.25% PIK	06/2024	35		35		—		34
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH	One stop	L + 7.75%	(c)	7.50% cash/1.75% PIK	10/2024	132		127		—		139
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH#	One stop	L + 7.75%		N/A(6)	10/2024	—		—		—		1
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH#(5)	One stop	L + 7.75%		N/A(6)	10/2024	—		(6)		—		70
PDI TA Holdings, Inc.	One stop	L + 4.50%	(a)	5.50%	10/2024	3,391		3,357		0.6		3,357
PDI TA Holdings, Inc.	Second lien	L + 8.50%	(a)	9.50%	10/2025	1,356		1,336		0.3		1,336
Personify, Inc.	One stop	L + 5.75%	(c)	6.75%	09/2024	3,421		3,400		0.6		3,387
Personify, Inc.	One stop	P + 4.75%	(f)	8.00%	09/2024	2,055		2,035		0.4		2,034
Personify, Inc.#	One stop	L + 5.75%	(c)	6.75%	09/2024	30		30		—		29
RegEd Aquireco, LLC	Senior loan	L + 4.25%	(a)	5.25%	12/2024	1,214		1,206		0.2		1,153
RegEd Aquireco, LLC#	Senior loan	L + 4.25%	(a)(f)	4.40%	12/2024	31		30		—		22
Saturn Borrower Inc.	One stop	L + 6.50%	(c)	7.50%	09/2026	6,472		6,286		1.2		6,472
Saturn Borrower Inc.#(5)	One stop	L + 6.50%		N/A(6)	09/2026	—		(3)		—		—
SnapLogic, Inc.#	One stop	L + 8.75%	(c)	5.75% cash/5.50% PIK	09/2024	1,043		1,038		0.2		1,043
SnapLogic, Inc.(5)	One stop	L + 8.75%	(c)	5.75% cash/5.50% PIK	09/2024	3		(2)		—		3
SnapLogic, Inc.#	One stop	L + 8.75%		N/A(6)	09/2024	—		—		—		—
Sontatype, Inc.	One stop	L + 6.75%	(c)	7.75%	12/2025	12,912		12,806		2.4		12,912
Sontatype, Inc.#(5)	One stop	L + 6.75%		N/A(6)	12/2025	—		(2)		—		—
Spartan Buyer Acquisition Co.	One stop	L + 6.50%	(c)	7.50%	12/2026	12,771		12,613		2.4		12,627
Spartan Buyer Acquisition Co.#(5)	One stop	L + 6.50%		N/A(6)	12/2026	—		(3)		—		(3)
Telesoft Holdings LLC	One stop	L + 5.75%	(b)	6.75%	12/2025	21,115		20,721		3.9		21,115
Telesoft Holdings LLC#(5)	One stop	L + 5.75%		N/A(6)	12/2025	—		(4)		—		—
TI Intermediate Holdings, LLC	Senior loan	L + 4.50%	(a)	4.65%	12/2024	818		813		0.2		778
TI Intermediate Holdings, LLC	Senior loan	L + 4.50%	(a)	5.50%	12/2024	219		215		—		215
TI Intermediate Holdings, LLC#(5)	Senior loan	L + 4.50%		N/A(6)	12/2024	—		—		—		(2)
TI Intermediate Holdings, LLC#(5)	Senior loan	L + 4.50%		N/A(6)	12/2024	—		(3)		—		(3)
Togetherwork Holdings, LLC	One stop	L + 5.75%	(a)	6.75%	03/2025	1,955		1,934		0.4		1,955
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	499		494		0.1		499
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	477		472		0.1		477
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	472		467		0.1		472
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	440		435		0.1		440
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	404		399		0.1		404
Togetherwork Holdings, LLC	One stop	L + 5.75%	(a)	6.75%	03/2025	303		299		0.1		303
Togetherwork Holdings, LLC	One stop	L + 5.75%	(a)	6.75%	03/2025	202		199		—		202
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	182		180		—		182
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2024	150		149		—		150
Togetherwork Holdings, LLC	One stop	L + 5.75%	(a)	6.75%	03/2025	85		84		—		85
Togetherwork Holdings, LLC	One stop	L + 5.75%	(a)	6.75%	03/2025	82		81		—		82
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	18		17		—		18
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	16		16		—		16
Transact Holdings, Inc.	Senior loan	L + 4.75%	(a)	4.90%	04/2026	756		747		0.1		739
Trintech, Inc.	One stop	L + 6.00%	(c)	7.00%	12/2023	2,088		2,075		0.4		2,088
Trintech, Inc.	One stop	L + 6.00%	(c)	7.00%	12/2023	1,038		1,032		0.2		1,038
Trintech, Inc.#	One stop	L + 6.00%	(c)	7.00%	12/2023	150		149		—		150
Vector CS Midco Limited & Cloudsense Ltd.#(7)(8)(9)	One stop	N/A		4.50% cash/3.55% PIK	05/2024	2,003		1,990		0.4		2,096
Vector CS Midco Limited & Cloudsense Ltd.#(7)(8)(9)	One stop	L + 8.05%	(h)	4.50% cash/3.55% PIK	05/2024	67		66		—		70
Workforce Software, LLC	One stop	L + 6.50%	(c)	7.50%	07/2025	10,984		10,818		2.0		10,984
Workforce Software, LLC#(5)	One stop	L + 6.50%		N/A(6)	07/2025	—		(1)		—		—
						317,937		313,975		59.1		317,609

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Specialty Retail
2nd Ave. LLC	One stop	L + 6.50%	(d)	7.50%	09/2025	$	1,377	$	1,366	0.3	%	$	1,349
2nd Ave. LLC#	One stop	L + 6.50%	(d)	7.50%	09/2025	50		50		—		49
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	1,525		1,515		0.3		1,525
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	1,451		1,437		0.3		1,451
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	1,111		1,102		0.2		1,111
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	878		872		0.2		878
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	749		743		0.1		749
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	619		614		0.1		619
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	599		595		0.1		599
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	488		484		0.1		488
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	445		442		0.1		445
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	444		440		0.1		444
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	384		381		0.1		384
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	348		345		0.1		348
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	313		310		0.1		313
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	289		286		0.1		289
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	252		250		—		252
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	194		193		—		194
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	191		189		—		191
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	159		158		—		159
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	148		146		—		148
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	147		145		—		147
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	108		107		—		108
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	95		95		—		95
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	89		89		—		89
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	85		84		—		85
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	80		79		—		80
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	52		52		—		52
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	49		49		—		49
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	42		42		—		42
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	42		42		—		42
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	37		36		—		37
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	31		31		—		31
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	25		25		—		25
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	22		22		—		22

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Specialty Retail - (continued)
Imperial Optical Midco Inc.#	One stop	L + 6.25%		N/A(6)	08/2023	$	—	$	—	—	%	$	—
Imperial Optical Midco Inc.#(5)	One stop	L + 6.25%		N/A(6)	08/2023	—		(13)		—		—
Jet Equipment & Tools Ltd.#(7)(8)(10)	One stop	L + 5.25%	(a)	6.25%	11/2024	4,246		4,212		0.8		4,358
Jet Equipment & Tools Ltd.(7)(10)	One stop	L + 5.25%	(a)	6.25%	11/2024	3,347		3,324		0.6		3,343
Jet Equipment & Tools Ltd.#(7)(8)(10)	One stop	L + 5.50%		6.50%	11/2024	1,317		1,304		0.3		1,374
Jet Equipment & Tools Ltd.(7)(10)	One stop	L + 5.25%	(a)	6.25%	11/2024	1,029		1,022		0.2		1,027
Jet Equipment & Tools Ltd.(7)(10)	One stop	L + 5.25%	(a)	6.25%	11/2024	395		393		0.1		396
Jet Equipment & Tools Ltd.#(5)(7)(8)(10)	One stop	L + 5.25%		N/A(6)	11/2024	—		(1)		—		—
Pet Supplies Plus, LLC	Senior loan	L + 4.25%	(c)	5.25%	12/2024	3,299		3,278		0.6		3,299
Pet Supplies Plus, LLC#(5)	Senior loan	L + 4.25%		N/A(6)	12/2023	—		(1)		—		—
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	1,696		1,696		0.3		1,696
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	405		385		0.1		405
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	373		368		0.1		373
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	360		355		0.1		360
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	348		348		0.1		348
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	324		320		0.1		324
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	270		266		0.1		270
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	256		253		0.1		256
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	208		208		—		208
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	184		182		—		184
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	150		144		—		150
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%	(a)	7.50%	05/2023	45		44		—		45
PPV Intermediate Holdings II, LLC#	One stop	N/A		7.90% PIK	05/2023	8		8		—		8
PPV Intermediate Holdings II, LLC#	One stop	L + 6.50%		N/A(6)	05/2023	—		—		—		—
Sola Franchise, LLC and Sola Salon Studios, LLC	One stop	L + 4.75%	(c)	5.75%	10/2024	996		989		0.2		996
Sola Franchise, LLC and Sola Salon Studios, LLC#	One stop	L + 4.75%	(c)	5.75%	10/2024	669		664		0.1		669
Sola Franchise, LLC and Sola Salon Studios, LLC#	One stop	L + 4.75%	(c)(f)	6.13%	10/2024	33		32		—		33
Titan Fitness, LLC	One stop	L + 4.75%	(b)(c)	5.75%	02/2025	6,639		6,594		1.1		5,975
Titan Fitness, LLC#	One stop	L + 4.75%	(c)	5.75%	02/2025	785		780		0.1		707
Titan Fitness, LLC#	One stop	L + 4.75%	(c)	5.75%	02/2025	237		235		—		212
Titan Fitness, LLC#(5)	One stop	L + 4.75%		N/A(6)	02/2025	—		(4)		—		—
Vermont Aus Pty Ltd#(7)(8)(11)	One stop	L + 4.75%		4.81%	12/2024	439		433		0.1		488
Vermont Aus Pty Ltd#(7)(8)(11)	One stop	L + 4.75%		4.81%	12/2024	32		30		—		38
						41,008		40,664		7.5		40,431

Total debt investments						$	1,026,913	$	1,014,726	188.5	%	$	1,013,519

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)	Amortized Cost		Percentage of Net Assets		Fair Value (4)
Equity investments(13)(14)
Automobiles
MOP GM Holding, LLC#	LP units	N/A		N/A	N/A	—	$	130	—	%	$	130
Quick Quack Car Wash Holdings, LLC#	LLC units	N/A		N/A	N/A	—	93		—		98
							223		—		228
Biotechnology
BIO18 Borrower, LLC#(15)	LLC units	N/A		N/A	N/A	141	246		0.1		433

Chemicals
Inhance Technologies Holdings LLC#	LLC units	N/A		N/A	N/A	—	34		—		17

Diversified Consumer Services
EWC Growth Partners LLC#	LLC interest	N/A		N/A	N/A	—	25		—		7
Liminex, Inc.#	Common Stock	N/A		N/A	N/A	6	201		—		201
							226		—		208

Electronic Equipment, Instruments, and Components
ES Acquisition LLC#	LP interest	N/A	(c)	N/A	N/A	—	333		0.1		598

Food & Staples Retailing
Captain D's, LLC#	LLC interest	N/A		N/A	N/A	15	15		—		39
Mendocino Farms, LLC#	Common Stock	N/A		N/A	N/A	59	257		0.1		329
Ruby Slipper Cafe LLC, The#	LLC units	N/A		N/A	N/A	6	61		—		13
Ruby Slipper Cafe LLC, The#	LLC units	N/A		N/A	N/A	—	4		—		2
Wood Fired Holding Corp.#	LLC units	N/A		N/A	N/A	103	103		—		84
Wood Fired Holding Corp.#	LLC units	N/A		N/A	N/A	103	—		—		—
							440		0.1		467
Food Products
FCID Merger Sub, Inc.#	Common Stock	N/A		N/A	N/A	1	130		—		130

Health Care Equipment & Supplies
Aspen Medical Products, LLC#	Common Stock	N/A		N/A	N/A	—	17		—		24
Blue River Pet Care, LLC#	LLC units	N/A		N/A	N/A	—	207		0.1		294
CCSL Holdings, LLC#	LP units	N/A		N/A	N/A	—	126		—		126
CMI Parent Inc.#	LLC units	N/A		N/A	N/A	—	492		0.1		495
CMI Parent Inc.#	LLC units	N/A		N/A	N/A	5	5		—		—
							847		0.2		939

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)	Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)	Amortized Cost		Percentage of Net Assets		Fair Value (4)
Health Care Providers & Services
CRH Healthcare Purchaser, Inc.#(15)	LP interest	N/A	N/A	N/A	102	$	68	0.1	%	$	220
Elite Dental Partners LLC#	LLC units	N/A	N/A	N/A	—	444		0.1		475
Elite Dental Partners LLC#	LLC units	N/A	N/A	N/A	—	191		—		164
Elite Dental Partners LLC#	LLC units	N/A	N/A	N/A	—	—		—		30
Encorevet Group LLC#	Preferred stock	N/A	N/A	N/A	2	223		0.1		286
Encorevet Group LLC#	LLC units	N/A	N/A	N/A	1	91		—		110
ERG Buyer, LLC#	LLC units	N/A	N/A	N/A	—	165		—		5
ERG Buyer, LLC#	LLC units	N/A	N/A	N/A	2	2		—		—
Krueger-Gilbert Health Physics, LLC#	LLC interest	N/A	N/A	N/A	49	50		—		56
MD Now Holdings, Inc.#	LLC units	N/A	N/A	N/A	3	33		—		43
Midwest Veterinary Partners, LLC#	LLC units	N/A	N/A	N/A	—	13		—		15
Midwest Veterinary Partners, LLC#	LLC units	N/A	N/A	N/A	3	—		—		28
Summit Behavioral Healthcare, LLC#	LLC interest	N/A	N/A	N/A	—	14		—		19
Summit Behavioral Healthcare, LLC#	LLC interest	N/A	N/A	N/A	—	—		—		—
						1,294		0.3		1,451
Health Care Technology
Connexin Software, Inc.#	LLC interest	N/A	N/A	N/A	26	26		—		45
HSI Halo Acquisition, Inc.#	Preferred stock	N/A	N/A	N/A	—	75		—		66
HSI Halo Acquisition, Inc.#	Common Stock	N/A	N/A	N/A	—	—		—		—
Caliper Software, Inc.#	Preferred stock	N/A	N/A	N/A	1	596		0.2		767
Caliper Software, Inc.#	Preferred stock	N/A	N/A	N/A	—	340		0.1		340
Caliper Software, Inc.#	Common Stock	N/A	N/A	N/A	53	53		—		195
Caliper Software, Inc.#	Preferred stock	N/A	N/A	N/A	—	15		—		15
Caliper Software, Inc.#	Preferred stock	N/A	N/A	N/A	—	8		—		11
						1,113		0.3		1,439

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)	Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)	Amortized Cost		Percentage of Net Assets		Fair Value (4)
Hotels, Restaurants and Leisure
SSRG Holdings, LLC#	LLC units	N/A	N/A	N/A	40	$	399	0.1	%	$	266
Tropical Smoothie Cafe Holdings, LLC#(15)	LP units	N/A	N/A	N/A	2	220		—		257
						619		0.1		523
Household Durables
Groundworks LLC#	LLC units	N/A	N/A	N/A	—	53		—		107

Insurance
Majesco#	LP units	N/A	N/A	N/A	—	106		—		109
Majesco#	LP units	N/A	N/A	N/A	24	—		—		46
Orchid Underwriters Agency, LLC#	LP interest	N/A	N/A	N/A	22	22		—		19
						128		—		174

IT Services
Appriss Holdings, Inc.#	Preferred stock	N/A	N/A	N/A	—	52		—		64
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.#	Preferred stock	N/A	N/A	N/A	217	170		0.1		547
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.#	Preferred stock	N/A	N/A	N/A	57	156		0.1		158
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.#	Warrant	N/A	N/A	N/A	75	59		0.1		160
Centrify Corporation#	LP interest	N/A	N/A	N/A	—	170		—		104
Centrify Corporation#	LP interest	N/A	N/A	N/A	60	—		—		—
Episerver, Inc.#	LLC units	N/A	N/A	N/A	17	173		—		129
PCS Intermediate II Holdings, LLC#	LLC units	N/A	N/A	N/A	13	126		—		146
Red Dawn SEI Buyer, Inc.#	LP interest	N/A	N/A	N/A	219	219		0.1		247
						1,125		0.4		1,555
Leisure Products
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	15	24		—		13
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	10	16		—		9
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	9	13		—		7
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	8	12		—		7
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	3	5		—		3
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	—	—		—		—
						70		—		39
Professional Services
Net Health Acquisition Corp.#	LP interest	N/A	N/A	N/A	1	126		—		137
Nexus Brands Group, Inc.#	LP interest	N/A	N/A	N/A	—	49		—		64
						175		—		201
Real Estate Management & Development
Property Brands, Inc.#	LLC units	N/A	N/A	N/A	11	60		—		100

Road & Rail
Internet Truckstop Group LLC#	LP interest	N/A	N/A	N/A	146	146		—		116

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


	Investment Type	Spread Above Index(1)	Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Software
Astute Holdings, Inc. #	LP interest	N/A	N/A	N/A	—		$	83	—	%	$	167
Calabrio, Inc. #	Common Stock	N/A	N/A	N/A	58		444		0.2		897
Cloudbees, Inc.#	Preferred stock	N/A	N/A	N/A	15		93		—		72
Cloudbees, Inc.#	Warrant	N/A	N/A	N/A	27		40		—		66
Confluence Technologies, Inc.#	LLC interest	N/A	N/A	N/A	—		53		—		90
Convercent, Inc.#	Warrant	N/A	N/A	N/A	82		16		—		37
Digital Guardian, Inc.#	Preferred stock	N/A	N/A	N/A	72		87		—		76
Digital Guardian, Inc.#	Warrant	N/A	N/A	N/A	25		43		—		59
Digital Guardian, Inc.#	Preferred stock	N/A	N/A	N/A	15		27		—		36
Digital Guardian, Inc.#	Preferred stock	N/A	N/A	N/A	14		25		—		35
Digital Guardian, Inc.#	Warrant	N/A	N/A	N/A	25		4		—		14
GS Acquisitionco, Inc.#	LP interest	N/A	N/A	N/A	—		44		0.1		177
MetricStream, Inc.#	Warrant	N/A	N/A	N/A	44		67		—		49
mParticle, Inc.#	Warrant	N/A	N/A	N/A	10		4		—		46
Namely, Inc.#	Warrant	N/A	N/A	N/A	24		163		—		158
Namely, Inc.#	Warrant	N/A	N/A	N/A	8		14		—		13
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH#	Warrant	N/A	N/A	N/A	2		6		—		16
Personify, Inc.#	LLC units	N/A	N/A	N/A	163		171		0.1		237
Pride Midco, Inc.#(15)	Preferred stock	N/A	N/A	N/A	1		556		0.1		707
RegEd Aquireco, LLC#	LP interest	N/A	N/A	N/A	—		70		—		41
RegEd Aquireco, LLC#	LP interest	N/A	N/A	N/A	1		—		—		—
Saturn Borrower Inc.#	LP units	N/A	N/A	N/A	132		132		—		132
SnapLogic, Inc.#	Preferred stock	N/A	N/A	N/A	66		164		0.1		257
SnapLogic, Inc.#	Warrant	N/A	N/A	N/A	16		6		—		45
Spartan Buyer Acquisition Co.#	Common Stock	N/A	N/A	N/A	—		216		0.1		216
Telesoft Holdings LLC#	LP interest	N/A	N/A	N/A	131		131		—		125
							2,659		0.7		3,768
Specialty Retail
2nd Ave. LLC#	LP interest	N/A	N/A	N/A	157		157		—		145
Imperial Optical Midco Inc.#	Preferred stock	N/A	N/A	N/A	—		110		—		119
Imperial Optical Midco Inc.#	Preferred stock	N/A	N/A	N/A	—		42		—		42
Jet Equipment & Tools Ltd.#(7)(8)(10)	LLC units	N/A	N/A	N/A	—		173		0.2		730
Pet Supplies Plus, LLC#	LLC units	N/A	N/A	N/A	34		34		—		114
PPV Intermediate Holdings II, LLC#	LLC interest	N/A	N/A	N/A	98		98		0.1		164
Sola Franchise, LLC and Sola Salon Studios, LLC#	LLC units	N/A	N/A	N/A	1		130		—		147
Sola Franchise, LLC and Sola Salon Studios, LLC#	LLC units	N/A	N/A	N/A	—		26		—		29
							770		0.3		1,490


Total equity investments							$	10,691	2.6	%	$	13,983

Total investments					$	1,026,913	$	1,025,417	191.1	%	$	1,027,502

Money market funds (included in cash and cash equivalents and restricted cash and cash equivalents)
BlackRock Liquidity Funds T-Fund Institutional Shares (CUSIP 09248U718)			0.01% (16)				$	7,407	1.4	%	$	7,407
Total money market funds							$	7,407	1.4	%	$	7,407

Total investments and money market funds							$	1,032,824	192.5	%	$	1,034,909

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

December 31, 2020

(In thousands)


#						Denotes that all or a portion of the loan collateralizes the DB Credit Facility (as defined in Note 8).

(1) The majority of the investments bear interest at a rate that is permitted to be determined by reference to the 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’’) 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 December 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 December 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 December 31, 2020, as the loan may have priced or repriced based on an index rate prior to December 31, 2020.

(a) Denotes that all or a portion of the loan was indexed to the 30-day LIBOR, which was 0.14% as of December 31, 2020.

(b) Denotes that all or a portion of the loan was indexed to the 60-day LIBOR, which was 0.19% as of December 31, 2020.

(d) Denotes that all or a portion of the loan was indexed to the 180-day LIBOR, which was 0.26% as of December 31, 2020.

(e) Denotes that all or a portion of the loan was indexed to the 360-day LIBOR, which was 0.34% as of December 31, 2020.

(f) Denotes that all or a portion of the loan was indexed to the Prime rate, which was 3.25% as of December 31, 2020.

(g) Denotes that all or a portion of the loan was indexed to the 90-day EURIBOR, which was -0.55% as of December 31, 2020.

(h) Denotes that all or a portion of the loan was indexed to the 90-day GBP LIBOR, which was 0.03% as of December 31, 2020.

(i) Denotes that all or a portion of the loan was indexed to the Australia Three Month Interbank Rate, which was 0.06% as of December 31, 2020.

(j) Denotes that all or a portion of the loan was indexed to the Canadian Bank Acceptances Rate, which was 0.48% as of December 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 December 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 7. 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 December 31, 2020. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.

(7)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 December 31, 2020, total non-qualifying assets at fair value represented 4.1% of the Company’s total assets calculated in accordance with the 1940 Act.

(8)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 Translation.

(9)The headquarters of this portfolio company is located in the United Kingdom.

(10)The headquarters of this portfolio company is located in Canada.

(11)The headquarters of this portfolio company is located in Australia.

(12)The headquarters of this portfolio company is located in Luxembourg.

(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)The rate shown is the annualized seven-day yield as of December 31, 2020.

See Notes to Consolidated Financial Statements

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Investments
Non-controlled/non-affiliate company investments
Debt investments
Airlines
Aurora Lux Finco S.A.R.L.(7)(12)	One stop	L + 6.00%	(c)	7.00%	12/2026	$	7,800	$	7,626	1.3	%	$	7,020
Auto Components
Power Stop, LLC	Senior loan	L + 4.50%	(a)	4.65%	10/2025	668		666		0.1		655
Automobiles
Grease Monkey International, LLC	Senior loan	L + 5.00%	(c)	6.00%	11/2022	960		954		0.2		960
Grease Monkey International, LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2022	350		347		0.1		350
Grease Monkey International, LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2022	178		177		—		178
Grease Monkey International, LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2022	161		160		—		161
Grease Monkey International, LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2022	147		146		—		147
Grease Monkey International, LLC#(5)	Senior loan	L + 5.00%		N/A(6)	11/2022	—		(1)		—		—
Grease Monkey International, LLC#(5)	Senior loan	L + 5.00%		N/A(6)	11/2022	—		(1)		—		—
JHCC Holdings LLC	One stop	L + 5.50%	(c)	6.50%	09/2025	3,004		2,980		0.6		3,004
JHCC Holdings LLC#	One stop	L + 5.50%	(c)	6.50%	09/2025	1,331		1,289		0.2		1,331
JHCC Holdings LLC#	One stop	P + 4.50%	(c)(f)	7.55%	09/2025	31		30		—		31
Quick Quack Car Wash Holdings, LLC	One stop	L + 6.50%	(d)	7.50%	04/2023	1,677		1,667		0.3		1,677
Quick Quack Car Wash Holdings, LLC#	One stop	L + 6.50%	(c)(d)	7.50%	04/2023	816		811		0.2		816
Quick Quack Car Wash Holdings, LLC#	One stop	L + 6.50%	(d)	7.50%	04/2023	713		708		0.1		713
Quick Quack Car Wash Holdings, LLC#	One stop	L + 6.50%	(d)	7.50%	04/2023	476		473		0.1		476
Quick Quack Car Wash Holdings, LLC#	One stop	L + 6.50%	(d)	7.50%	04/2023	388		385		0.1		388
Quick Quack Car Wash Holdings, LLC#	One stop	L + 6.50%		N/A(6)	04/2023	—		—		—		—
						10,232		10,125		1.9		10,232
Beverages
Fintech Midco, LLC	One stop	L + 5.00%	(a)	6.00%	08/2024	4,884		4,853		0.9		4,738
Fintech Midco, LLC#	One stop	L + 5.00%	(a)	6.00%	08/2024	440		437		0.1		427
Fintech Midco, LLC#(5)	One stop	L + 5.00%		N/A(6)	08/2024	—		(1)		—		(3)
						5,324		5,289		1.0		5,162
Biotechnology
BIO18 Borrower, LLC	One stop	L + 5.25%	(c)	6.25%	11/2024	1,754		1,739		0.4		1,754
BIO18 Borrower, LLC#	One stop	L + 5.25%	(c)	6.25%	11/2024	1,631		1,616		0.3		1,631
BIO18 Borrower, LLC#	One stop	L + 5.25%	(c)	6.25%	11/2024	105		104		—		105
BIO18 Borrower, LLC#(5)	One stop	L + 5.25%		N/A(6)	11/2024	—		(3)		—		—
						3,490		3,456		0.7		3,490
Chemicals
Inhance Technologies Holdings LLC	One stop	L + 6.00%	(c)	7.00%	07/2024	2,485		2,466		0.5		2,349
Inhance Technologies Holdings LLC#	One stop	L + 6.00%	(c)	7.00%	07/2024	751		747		0.1		710
Inhance Technologies Holdings LLC#	One stop	L + 6.00%	(c)	7.00%	07/2024	40		39		—		34
						3,276		3,252		0.6		3,093
Commercial Services & Supplies
Bazaarvoice, Inc.	One stop	L + 5.75%	(a)(c)	6.75%	02/2024	8,334		8,253		1.6		8,334
Bazaarvoice, Inc.#	One stop	L + 5.75%	(c)	6.75%	02/2024	150		147		0.1		150
MSHC, Inc.#	Senior loan	L + 4.25%	(a)(f)	5.25%	12/2024	131		131		—		131

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Commercial Services & Supplies - (continued)
MSHC, Inc.	Senior loan	L + 4.25%	(c)(f)	5.25%	12/2024	$	23	$	23	—	%	$	23
PT Intermediate Holdings III, LLC	One stop	L + 5.50%	(c)	6.50%	10/2025	23,229		22,924		4.1		21,835
						31,867		31,478		5.8		30,473
Containers and Packaging
AmerCareRoyal LLC	Senior loan	L + 5.00%	(a)	6.00%	11/2025	2,819		2,795		0.5		2,763
AmerCareRoyal LLC(7)	Senior loan	L + 5.00%	(a)	6.00%	11/2025	522		518		0.1		512
Fortis Solutions Group LLC	Senior loan	L + 5.00%	(a)	6.00%	12/2023	538		534		0.1		538
Fortis Solutions Group LLC	Senior loan	L + 5.00%	(a)	6.00%	12/2023	214		213		0.1		214
Fortis Solutions Group LLC	Senior loan	L + 5.00%	(a)	6.00%	12/2023	206		204		—		206
Fortis Solutions Group LLC#	Senior loan	L + 5.00%		N/A(6)	12/2023	—		—		—		—
						4,299		4,264		0.8		4,233
Diversified Consumer Services
EWC Growth Partners LLC#	One stop	L + 5.50%	(c)	6.50%	03/2026	442		423		0.1		385
EWC Growth Partners LLC	One stop	L + 5.50%	(c)	6.50%	03/2026	62		61		—		54
EWC Growth Partners LLC#	One stop	L + 5.50%	(c)	6.50%	03/2026	18		18		—		15
Learn-it Systems, LLC	Senior loan	L + 5.00%	(c)	5.00% cash/0.50% PIK	03/2025	758		748		0.1		743
Learn-it Systems, LLC#	Senior loan	L + 5.00%	(c)	5.00% cash/0.50% PIK	03/2025	145		138		—		142
Learn-it Systems, LLC#	Senior loan	L + 5.00%	(c)	N/A(6)	03/2025	—		—		—		—
Litera Bidco LLC	One stop	L + 5.25%	(a)	6.25%	05/2026	620		614		0.1		620
Litera Bidco LLC#	One stop	L + 5.25%	(a)	6.25%	05/2026	278		275		0.1		278
Litera Bidco LLC#	One stop	L + 5.25%	(a)	6.25%	05/2026	278		278		0.1		278
Litera Bidco LLC#	One stop	L + 5.25%	(a)	6.25%	05/2025	8		7		—		8
						2,609		2,562		0.5		2,523
Diversified Financial Services
Institutional Shareholder Services	Senior loan	L + 4.50%	(c)	4.72%	03/2026	6,380		6,330		1.2		6,380
Institutional Shareholder Services#	Senior loan	L + 4.50%	(c)	4.72%	03/2024	75		74		—		75
Sovos Compliance	One stop	L + 4.75%	(a)	5.75%	04/2024	7,513		7,405		1.4		7,362
Sovos Compliance	Second lien	N/A		12.00% PIK	04/2025	3,427		3,372		0.7		3,427
Sovos Compliance	One stop	L + 4.75%	(a)	5.75%	04/2024	1,732		1,697		0.3		1,697
Sovos Compliance#	One stop	L + 4.75%	(a)	5.75%	04/2024	735		730		0.1		721
Sovos Compliance#	Second lien	N/A		12.00% PIK	04/2025	523		513		0.1		523
Sovos Compliance#	One stop	L + 4.75%	(a)	5.75%	04/2024	505		497		0.1		495
Sovos Compliance#	One stop	L + 4.75%	(a)	5.75%	04/2024	328		318		0.1		322
Sovos Compliance#(5)	One stop	L + 4.75%		N/A(6)	04/2024	—		(1)		—		(2)
Sovos Compliance#(5)	One stop	L + 4.75%		N/A(6)	04/2024	—		(9)		—		(9)
						21,218		20,926		4.0		20,991
Electronic Equipment, Instruments and Components
ES Acquisition LLC	Senior loan	L + 5.00%	(c)	6.00%	11/2025	15,818		15,682		3.0		15,788
ES Acquisition, LLC#	Senior loan	L + 5.50%	(c)	6.50%	11/2025	1,923		1,860		0.4		1,962
ES Acquisition, LLC#	Senior loan	L + 5.00%	(d)	6.22%	11/2025	1,116		1,106		0.2		1,114
ES Acquisition LLC#	Second lien	L + 5.00%	(c)	6.00%	11/2025	856		849		0.1		855
ES Acquisition LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2025	101		99		—		101
ES Acquisition LLC#(5)	Senior loan	L + 5.00%		N/A(6)	11/2025	—		(29)		—		(6)
						19,814		19,567		3.7		19,814

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Food & Staples Retailing
Captain D's, LLC	Senior loan	L + 4.50%	(c)	5.50%	12/2023	$	1,217	$	1,207	0.2	%	$	1,217
Captain D's, LLC#	Senior loan	L + 4.50%	(c)	5.50%	12/2023	61		60		—		61
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	557		553		0.1		557
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	285		284		0.1		285
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	224		223		—		224
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	220		219		—		220
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	108		108		—		108
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	108		108		—		108
Mendocino Farms, LLC#	One stop	L + 8.50%	(a)	2.00% cash/7.50% PIK	06/2023	53		53		—		53
Mendocino Farms, LLC#(5)	One stop	L + 8.50%		N/A(6)	06/2023	—		(11)		—		—
Ruby Slipper Cafe LLC, The#	One stop	L + 8.50%	(c)	8.50% cash/1.00% PIK	01/2023	333		331		0.1		293
Ruby Slipper Cafe LLC, The#	One stop	L + 8.50%	(c)	8.50% cash/1.00% PIK	01/2023	117		116		—		103
Ruby Slipper Cafe LLC, The#	One stop	L + 8.50%	(c)	8.50% cash/1.00% PIK	01/2023	20		20		—		18
Wood Fired Holding Corp.	One stop	L + 7.75%	(c)	6.75% cash/2.00% PIK	12/2023	3,169		3,148		0.6		2,914
Wood Fired Holding Corp.#	One stop	L + 7.75%	(c)	6.75% cash/2.00% PIK	12/2023	284		283		0.1		261
Wood Fired Holding Corp.#	One stop	L + 7.75%	(c)	6.75% cash/2.00% PIK	12/2023	100		99		—		92
						6,856		6,801		1.2		6,514
Food Products
Flavor Producers, LLC	Senior loan	L + 5.75%	(c)	5.75% cash/1.00% PIK	12/2023	439		434		0.1		403
Flavor Producers, LLC#	Senior loan	L + 5.75%	(c)	5.75% cash/1.00% PIK	12/2022	2		1		—		—
						441		435		0.1		403

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Health Care Technology
Connexin Software, Inc.	One stop	L + 8.50%	(a)	9.50%	02/2024	$	1,261	$	1,251	0.2	%	$	1,261
Connexin Software, Inc.#	One stop	L + 8.50%		N/A(6)	02/2024	—		—		—		—
HealthEdge Software, Inc.#	One stop	L + 6.25%	(a)	7.25%	04/2026	2,232		2,197		0.4		2,232
HealthEdge Software, Inc.	One stop	L + 6.25%	(a)	7.25%	04/2026	1,559		1,527		0.3		1,559
HealthEdge Software, Inc.#(5)	One stop	L + 6.25%		N/A(6)	04/2026	—		(1)		—		—
HSI Halo Acquisition, Inc.	One stop	L + 5.75%	(c)	6.75%	08/2026	1,540		1,508		0.3		1,525
HSI Halo Acquisition, Inc.#	One stop	L + 5.75%	(c)	6.75%	08/2026	311		307		0.1		308
HSI Halo Acquisition, Inc.#	One stop	P + 4.75%	(f)	8.00%	09/2025	21		20		—		21
Imprivata, Inc.	Senior loan	L + 4.00%	(c)	5.00%	10/2023	805		800		0.1		805
Imprivata, Inc.#(5)	Senior loan	L + 4.00%		N/A(6)	10/2023	—		(1)		—		—
Nextech Holdings, LLC	One stop	L + 5.50%	(c)	5.76%	06/2025	17,851		17,711		3.2		17,137
Nextech Holdings, LLC#	One stop	L + 5.50%	(c)	5.76%	06/2025	724		718		0.1		695
Nextech Holdings, LLC#	One stop	L + 5.50%	(c)	5.76%	06/2025	250		248		—		238
Nextech Holdings, LLC#(5)	One stop	L + 5.50%		N/A(6)	06/2025	—		(1)		—		(6)
Qgenda Intermediate Holdings, LLC	One stop	L + 4.75%	(c)	5.75%	06/2025	5,090		5,049		1.0		5,090
Qgenda Intermediate Holdings, LLC	One stop	L + 4.75%	(c)	5.75%	06/2025	2,462		2,442		0.5		2,462
Qgenda Intermediate Holdings, LLC#(5)	One stop	L + 4.75%		N/A(6)	06/2025	—		(1)		—		—
Caliper Software, Inc.	One stop	L + 5.50%	(c)	5.72%	11/2025	7,212		7,138		1.3		6,916
Caliper Software, Inc.	One stop	L + 6.00%	(c)	6.23%	11/2025	393		384		0.1		385
Caliper Software, Inc.#(5)	One stop	L + 5.50%		N/A(6)	11/2023	—		(2)		—		(5)
Transaction Data Systems, Inc.	One stop	L + 5.25%	(c)	6.25%	06/2021	13,657		13,642		2.6		13,521
Transaction Data Systems, Inc.#	One stop	L + 5.25%	(c)	6.25%	06/2021	28		28		—		28
						55,396		54,964		10.2		54,172
Healthcare Equipment and Supplies
Aspen Medical Products, LLC	One stop	L + 5.25%	(c)	6.45%	06/2025	1,033		1,024		0.2		1,022
Aspen Medical Products, LLC#	One stop	L + 5.25%		N/A(6)	06/2025	—		—		—		—
Belmont Instrument, LLC	Senior loan	L + 4.75%	(c)	4.97%	12/2023	1,784		1,769		0.3		1,784
Blades Buyer, Inc.	Senior loan	L + 4.50%	(c)	5.50%	08/2025	787		782		0.2		787
Blades Buyer, Inc.#	Senior loan	L + 4.50%	(d)	5.50%	08/2025	391		388		0.1		391
Blades Buyer, Inc.#	Senior loan	L + 4.50%		N/A(6)	08/2025	—		—		—		—
Blue River Pet Care, LLC	One stop	L + 5.00%	(a)	5.15%	07/2026	5,488		5,443		1.0		5,488
Blue River Pet Care, LLC#	One stop	L + 5.00%	(a)	5.15%	07/2026	1,102		1,067		0.2		1,102
Blue River Pet Care, LLC#(5)	One stop	L + 5.00%		N/A(6)	08/2025	—		(2)		—		—
CMI Parent Inc.	Senior loan	L + 4.25%	(c)	5.25%	08/2025	14,504		14,387		2.7		14,068
CMI Parent Inc.#(5)	Senior loan	L + 4.25%		N/A(6)	08/2025	—		(1)		—		(5)
ONsite Mammography, LLC	One stop	L + 7.00%	(c)	8.00%	11/2023	669		664		0.1		656
ONsite Mammography, LLC#	One stop	L + 7.00%	(c)	8.00%	11/2023	50		50		—		49
ONsite Mammography, LLC#	One stop	L + 7.00%	(c)	8.00%	11/2023	49		47		—		48
						25,857		25,618		4.8		25,390

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Health Care Providers & Services
CRH Healthcare Purchaser, Inc.	Senior loan	L + 4.50%	(c)	4.72%	12/2024	$	2,371	$	2,354	0.5	%	$	2,371
CRH Healthcare Purchaser, Inc.#(5)	Senior loan	L + 4.50%		N/A(6)	12/2024	—		(1)		—		—
CRH Healthcare Purchaser, Inc.#(5)	Senior loan	L + 4.50%		N/A(6)	12/2024	—		(12)		—		—
Elite Dental Partners LLC#	One stop	L + 5.25%	(c)	2.00% cash/4.25% PIK	06/2023	1,736		1,709		0.3		1,684
Elite Dental Partners LLC#	One stop	L + 5.25%		N/A(6)	06/2023	—		—		—		—
Encorevet Group LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2024	4,052		4,018		0.8		4,052
Encorevet Group LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2024	1,819		1,819		0.3		1,819
Encorevet Group LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2024	940		932		0.2		940
Encorevet Group LLC#	Senior loan	L + 5.00%	(c)	6.00%	11/2024	162		162		—		162
Encorevet Group LLC#	Senior loan	L + 5.00%		N/A(6)	11/2024	—		—		—		—
Encorevet Group LLC#(5)	Senior loan	L + 5.00%		N/A(6)	11/2024	—		(9)		—		—
ERG Buyer, LLC	One stop	L + 5.50%	(c)	6.50%	05/2024	2,290		2,269		0.3		1,832
ERG Buyer, LLC#	One stop	P + 4.50%	(f)	7.75%	05/2024	150		149		—		120
Eyecare Services Partners Holdings LLC#	One stop	L + 6.25%	(c)	7.25%	05/2023	3,798		3,721		0.7		3,608
Eyecare Services Partners Holdings LLC#	One stop	L + 6.25%	(c)	7.25%	05/2023	1,131		1,128		0.2		1,074
FYI Optical Acquisitions, Inc. & FYI USA, Inc.#(7)(8)(13)	One stop	L + 5.50%	(j)	6.01%	03/2027	1,420		1,382		0.3		1,349
FYI Optical Acquisitions, Inc. & FYI USA, Inc.#(7)(8)(13)	One stop	L + 5.50%	(j)	6.06%	03/2027	799		792		0.2		763
FYI Optical Acquisitions, Inc. & FYI USA, Inc.#(7)(13)	One stop	L + 5.50%	(c)	6.50%	03/2027	296		281		0.1		272
Krueger-Gilbert Health Physics, LLC#	Senior loan	L + 5.25%	(a)	6.25%	05/2025	476		472		0.1		476
Krueger-Gilbert Health Physics, LLC#	Senior loan	L + 5.25%	(a)	6.25%	05/2025	393		384		0.1		393
Krueger-Gilbert Health Physics, LLC	Senior loan	L + 5.25%	(a)	6.25%	05/2025	128		127		—		128
Krueger-Gilbert Health Physics, LLC#	Senior loan	L + 5.25%	(a)	6.25%	05/2025	25		25		—		25
MD Now Holdings, Inc.	One stop	L + 5.25%	(c)	6.25%	08/2024	2,898		2,879		0.5		2,840
MD Now Holdings, Inc.#	One stop	L + 5.25%	(c)	6.25%	08/2024	242		241		0.1		237
MD Now Holdings, Inc.#(5)	One stop	L + 5.25%		N/A(6)	08/2024	—		(1)		—		(3)
Midwest Veterinary Partners, LLC#	One stop	L + 5.75%	(c)(d)	6.75%	07/2025	3,187		3,162		0.6		3,148
Midwest Veterinary Partners, LLC#	One stop	L + 6.50%	(c)	7.50%	07/2025	1,129		1,055		0.2		1,065
Midwest Veterinary Partners, LLC#	One stop	L + 5.75%	(c)	6.75%	07/2025	793		787		0.2		783
Midwest Veterinary Partners, LLC	One stop	L + 5.75%	(c)	6.75%	07/2025	248		245		—		244
Midwest Veterinary Partners, LLC#	One stop	P + 4.75%	(c)(f)	8.00%	07/2025	100		99		—		99
NVA Holdings, Inc.	Senior loan	L + 3.50%	(a)	3.69%	02/2026	989		980		0.2		989
Summit Behavioral Healthcare, LLC	Senior loan	L + 4.75%	(c)	5.75%	10/2023	1,613		1,603		0.3		1,613
Summit Behavioral Healthcare, LLC#	Senior loan	L + 4.75%	(c)	5.75%	10/2023	80		79		—		80
Summit Behavioral Healthcare, LLC#	Senior loan	L + 4.75%	(c)	5.75%	10/2023	63		63		—		63
Veterinary Specialists of North America, LLC	Senior loan	L + 4.50%	(a)	4.65%	04/2025	16,925		16,798		3.2		16,925
Veterinary Specialists of North America, LLC#	Senior loan	L + 4.50%	(a)	4.65%	04/2025	4,401		4,363		0.8		4,401
Veterinary Specialists of North America, LLC#	Senior loan	L + 4.50%	(a)	4.65%	04/2025	1,231		1,222		0.2		1,231
Veterinary Specialists of North America, LLC#	Senior loan	L + 4.50%	(a)	4.65%	04/2025	620		615		0.1		620
Veterinary Specialists of North America, LLC#	Senior loan	L + 4.50%	(a)	4.65%	04/2025	500		496		0.1		500
						57,005		56,388		10.6		55,903

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Hotels, Restaurants & Leisure
BJH Holdings III Corp.	One stop	L + 5.50%	(c)	6.50%	08/2025	$	19,206	$	18,942	3.6	%	$	19,206
BJH Holdings III Corp.#(5)	One stop	L + 5.50%		N/A(6)	08/2025	—		(7)		—		—
CR Fitness Holdings, LLC	Senior loan	L + 4.25%	(a)	5.25%	07/2025	316		313		0.1		290
CR Fitness Holdings, LLC#	Senior loan	L + 4.25%	(a)	5.25%	07/2025	105		103		—		79
CR Fitness Holdings, LLC#	Senior loan	L + 4.25%	(a)(c)	5.25%	07/2025	37		37		—		34
Davidson Hotel Company, LLC	One stop	L + 6.75%	(a)(c)	6.25% cash/1.50% PIK	07/2024	1,729		1,710		0.2		1,210
Davidson Hotel Company, LLC#	One stop	L + 6.75%	(a)(c)	6.25% cash/1.50% PIK	07/2024	421		419		0.1		295
Davidson Hotel Company, LLC#(5)	One stop	L + 6.75%		N/A(6)	07/2024	—		(1)		—		(15)
Davidson Hotel Company, LLC#(5)	One stop	L + 6.75%		N/A(6)	07/2024	—		(8)		—		—
EOS Fitness Opco Holdings, LLC	One stop	L + 5.25%	(c)	6.25%	01/2025	1,738		1,725		0.3		1,599
EOS Fitness Opco Holdings, LLC#	One stop	L + 5.25%	(c)	6.25%	01/2025	372		367		0.1		342
EOS Fitness Opco Holdings, LLC#	One stop	L + 5.25%	(c)	6.25%	01/2025	60		60		—		55
Planet Fit Indy 10 LLC	One stop	L + 5.25%	(c)	6.25%	07/2025	13,943		13,775		2.4		12,549
Planet Fit Indy 10 LLC#	One stop	L + 5.25%	(c)	6.25%	07/2025	3,636		3,599		0.6		3,273
Planet Fit Indy 10 LLC#	One stop	L + 5.25%	(c)	6.25%	07/2025	1,974		1,946		0.3		1,777
Planet Fit Indy 10 LLC#	One stop	L + 5.25%	(c)	6.25%	07/2025	100		99		—		90
SSRG Holdings, LLC	One stop	L + 5.25%	(a)	6.25%	11/2025	6,416		6,361		1.2		6,224
SSRG Holdings, LLC#	One stop	L + 5.25%	(a)(c)	6.25%	11/2025	75		74		—		73
Sunshine Sub, LLC	One stop	L + 5.25%	(a)	6.25%	05/2024	1,974		1,950		0.4		1,856
Sunshine Sub, LLC#	One stop	L + 5.25%	(a)	6.25%	05/2024	1,932		1,910		0.3		1,817
Sunshine Sub, LLC#	One stop	L + 5.25%	(a)	6.25%	05/2024	10		9		—		4
Tropical Smoothie Cafe Holdings, LLC	Senior loan	L + 5.50%	(a)(c)	6.50%	09/2026	6,905		6,837		1.3		6,836
Tropical Smoothie Cafe Holdings, LLC#(5)	Senior loan	L + 5.50%		N/A(6)	09/2026	—		(1)		—		(1)
Velvet Taco Holdings, Inc.#	One stop	L + 7.00%	(e)	8.00%	03/2026	119		118		—		103
Velvet Taco Holdings, Inc.#	One stop	L + 7.00%		N/A(6)	03/2026	—		—		—		—
Velvet Taco Holdings, Inc.#(5)	One stop	L + 7.00%		N/A(6)	03/2026	—		(13)		—		—
						61,068		60,324		10.9		57,696

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Household Durables
Groundworks LLC#	Senior loan	L + 7.00%	(a)	8.00%	01/2026	$	1,407	$	1,392	0.3	%	$	1,407
Groundworks LLC	Senior loan	L + 7.00%	(a)	8.00%	01/2026	223		221		—		223
Groundworks LLC#	Senior loan	L + 7.00%		N/A(6)	01/2026	—		—		—		—
						1,630		1,613		0.3		1,630
Household Products
WU Holdco, Inc.	One stop	L + 5.25%	(c)	6.25%	03/2026	1,070		1,061		0.2		1,070
WU Holdco, Inc. #	One stop	L + 5.25%	(c)	6.25%	03/2026	164		163		—		164
WU Holdco, Inc. #(5)	One stop	L + 5.25%		N/A(6)	03/2025	—		—		—		(1)
						1,234		1,224		0.2		1,233
Industrial Conglomerates
Arch Global CCT Holdings Corp.	Senior loan	L + 4.75%	(c)	4.97%	04/2026	1,435		1,429		0.3		1,406
Arch Global CCT Holdings Corp.#(5)	Senior loan	L + 4.75%		N/A(6)	04/2025	—		—		—		(1)
Arch Global CCT Holdings Corp.#(5)	Senior loan	L + 4.75%		N/A(6)	04/2026	—		—		—		(3)
Madison Safety & Flow LLC	Senior loan	L + 4.50%	(a)	4.66%	03/2025	183		182		—		181
Madison Safety & Flow LLC#	Senior loan	L + 4.50%		N/A(6)	03/2025	—		—		—		—
						1,618		1,611		0.3		1,583
Insurance
High Street Insurance Partners, Inc.#	Senior loan	L + 6.25%	(c)	7.25%	12/2025	346		337		—		337
High Street Insurance Partners, Inc.#(5)	Senior loan	L + 6.25%		N/A(6)	12/2025	—		(3)		—		(3)
Integrity Marketing Acquisition, LLC#	Senior loan	L + 5.50%	(c)(d)	6.50%	08/2025	909		903		0.2		890
Integrity Marketing Acquisition, LLC	Senior loan	L + 5.50%	(c)	6.50%	08/2025	363		359		0.1		356
Integrity Marketing Acquisition, LLC#	Senior loan	L + 5.50%	(c)(d)	6.64%	08/2025	318		317		0.1		312
Integrity Marketing Acquisition, LLC#	Senior loan	L + 5.50%	(c)	6.50%	08/2025	192		191		—		189
Integrity Marketing Acquisition, LLC#	Senior loan	L + 5.75%		N/A(6)	08/2025	—		—		—		—
J.S. Held Holdings, LLC	One stop	L + 6.00%	(c)	7.00%	07/2025	18,113		17,762		3.4		18,113
J.S. Held Holdings, LLC#	One stop	P + 5.00%	(f)	8.25%	07/2025	26		22		—		26
J.S. Held Holdings, LLC#(5)	One stop	L + 6.00%		N/A(6)	07/2025	—		(8)		—		—
Majesco	One stop	L + 7.75%	(c)	8.75%	09/2027	4,902		4,804		0.9		4,829
Majesco#(5)	Senior loan	L + 7.75%		N/A(6)	09/2026	—		(3)		—		(2)
Orchid Underwriters Agency, LLC	Senior loan	L + 4.25%	(c)	5.25%	12/2024	794		789		0.1		794
Orchid Underwriters Agency, LLC#	Senior loan	L + 4.25%		N/A(6)	12/2024	—		—		—		—
Orchid Underwriters Agency, LLC#(5)	Senior loan	L + 4.25%		N/A(6)	12/2024	—		(3)		—		—
RSC Acquisition, Inc.	One stop	L + 5.50%	(b)(c)	6.50%	10/2026	11,896		11,668		2.2		11,539
RSC Acquisition, Inc.	One stop	L + 5.50%	(c)	6.50%	10/2026	477		457		0.1		462
RSC Acquisition, Inc.#(5)	One stop	L + 5.50%		N/A(6)	10/2026	—		(1)		—		(2)
RSC Acquisition, Inc.#(5)	One stop	L + 5.50%		N/A(6)	10/2026	—		(11)		—		(17)
RSC Acquisition, Inc.#(5)	One stop	L + 5.50%		N/A(6)	10/2026	—		(108)		—		(81)
						38,336		37,472		7.1		37,742
Internet & Catalog Retail
AutoQuotes, LLC	One stop	L + 6.00%	(c)	7.00%	11/2024	2,326		2,310		0.4		2,210
AutoQuotes, LLC#	One stop	L + 6.00%	(c)	7.00%	11/2024	50		50		—		48
						2,376		2,360		0.4		2,258

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
IT Services
Acquia, Inc.	One stop	L + 7.00%	(c)	8.00%	10/2025	$	1,804	$	1,789	0.3	%	$	1,804
Acquia, Inc.#	One stop	L + 7.00%		N/A(6)	10/2025	—		—		—		—
Appriss Holdings, Inc.	One stop	L + 5.50%	(a)(c)(d)	5.75%	06/2026	8,563		8,427		1.6		8,392
Appriss Holdings, Inc.#	One stop	L + 5.50%	(a)	5.65%	06/2025	101		97		—		97
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.	One stop	L + 7.50%	(a)	8.50% cash/1.00% PIK	08/2025	1,707		1,641		0.3		1,672
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.#	One stop	L + 7.50%		N/A(6)	08/2025	—		—		—		—
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.#(5)	One stop	L + 7.50%		N/A(6)	08/2025	—		(1)		—		(1)
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.#(5)	One stop	L + 7.50%		N/A(6)	08/2025	—		(5)		—		(5)
Centrify Corporation	One stop	L + 8.25%	(c)	9.25%	08/2024	5,230		5,179		1.0		5,126
Centrify Corporation#	One stop	P + 7.25%	(f)	10.50%	08/2024	100		99		—		98
E2open, LLC	One stop	L + 5.75%	(c)	6.75%	11/2024	22,712		22,437		4.2		22,258
E2open, LLC#(5)	One stop	L + 5.75%		N/A(6)	11/2024	—		(3)		—		(5)
Episerver, Inc.#(7)(8)	One stop	L + 6.00%	(d)	6.00%	10/2024	4,726		4,684		0.9		4,603
Episerver, Inc.#	One stop	L + 5.75%	(c)(d)	6.75%	10/2024	2,740		2,715		0.5		2,658
Episerver, Inc.#(5)	One stop	L + 5.75%		N/A(6)	10/2024	—		(2)		—		(6)
Infinisource, Inc.	One stop	L + 4.50%	(c)	5.50%	10/2026	10,752		10,659		2.0		10,752
Infinisource, Inc.#	One stop	L + 4.50%	(c)	5.50%	10/2026	2,480		2,436		0.5		2,480
Infinisource, Inc.#	One stop	L + 4.50%	(c)	5.50%	10/2026	1,782		1,767		0.3		1,782
Infinisource, Inc.#(5)	One stop	L + 4.50%		N/A(6)	10/2026	—		(1)		—		—
PCS Intermediate II Holdings, LLC	One stop	L + 5.25%	(c)	6.25%	01/2026	4,919		4,875		0.9		4,919
PCS Intermediate II Holdings, LLC#(5)	One stop	L + 5.50%		N/A(6)	01/2026	—		(1)		—		—
Recordxtechnologies, LLC	One stop	L + 5.50%	(c)	6.50%	12/2025	18,699		18,496		3.4		17,951
Recordxtechnologies, LLC#	One stop	L + 5.50%	(c)	6.50%	12/2025	100		98		—		92
Recordxtechnologies, LLC#(5)	One stop	L + 5.50%		N/A(6)	12/2025	—		(21)		—		(98)
Red Dawn SEI Buyer, Inc.	Senior loan	L + 4.25%	(c)	5.25%	11/2025	13,574		13,429		2.6		13,574
Red Dawn SEI Buyer, Inc.#(5)	Senior loan	L + 4.25%		N/A(6)	11/2025	—		(3)		—		—
Red Dawn SEI Buyer, Inc.#(5)	Senior loan	L + 4.25%		N/A(6)	11/2025	—		(21)		—		—
Velocity Technology Solutions, Inc.	One stop	L + 6.00%	(c)	7.00%	12/2023	1,606		1,591		0.3		1,606
Velocity Technology Solutions, Inc.#	One stop	L + 6.00%	(c)	7.00%	12/2023	25		24		—		25
						101,620		100,385		18.8		99,774

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Leisure Products
WBZ Investment LLC	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	09/2024	$	1,424	$	1,415	0.2	%	$	1,282
WBZ Investment LLC#	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	09/2024	472		469		0.1		425
WBZ Investment LLC#	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	09/2024	328		326		0.1		295
WBZ Investment LLC#	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	09/2024	168		166		—		151
WBZ Investment LLC#	One stop	L + 7.50%	(c)	6.50% cash/2.00% PIK	09/2024	40		40		—		35
						2,432		2,416		0.4		2,188
Machinery
Blackbird Purchaser, Inc.	Senior loan	L + 4.25%	(c)(f)	4.47%	04/2026	4,859		4,782		0.9		4,713
Blackbird Purchaser, Inc. #(5)	Senior loan	L + 4.25%		N/A(6)	04/2024	—		(2)		—		(3)
Blackbird Purchaser, Inc. #(5)	Senior loan	L + 4.25%		N/A(6)	04/2026	—		(3)		—		(6)
Chase Industries, Inc.	Senior loan	L + 7.00%	(d)	5.00% cash/1.50% PIK	05/2025	1,956		1,933		0.3		1,560
Chase Industries, Inc.#	Senior loan	L + 7.00%	(d)	6.50% cash/1.50% PIK	05/2025	339		335		0.1		270
Chase Industries, Inc.#	Senior loan	L + 7.00%	(d)	6.50% cash/1.50% PIK	05/2023	177		176		—		141
						7,331		7,221		1.3		6,675
Oil, Gas & Consumable Fuels
3ES Innovation, Inc.(7)(10)	One stop	L + 5.75%	(c)	6.75%	05/2025	3,736		3,672		0.7		3,550
3ES Innovation, Inc.#(5)(7)(10)	One stop	L + 5.75%		N/A(6)	05/2025	—		(2)		—		(5)
Drilling Info Holdings, Inc.	Senior loan	L + 4.50%	(a)	4.65%	07/2025	12,082		11,786		2.2		11,698
Drilling Info Holdings, Inc.	Senior loan	L + 4.25%	(a)	4.40%	07/2025	9,281		9,190		1.7		8,888
Drilling Info Holdings, Inc.#	Senior loan	L + 4.25%	(a)	4.40%	07/2023	60		59		—		56
Drilling Info Holdings, Inc.#	Senior loan	L + 4.50%	(a)	4.65%	07/2023	52		49		—		49
Drilling Info Holdings, Inc.#(5)	Senior loan	L + 4.25%		N/A(6)	07/2025	—		(4)		—		(19)
Project Power Buyer, LLC	One stop	L + 6.25%	(c)	7.25%	05/2026	3,900		3,855		0.7		3,861
Project Power Buyer, LLC#(5)	One stop	L + 6.25%		N/A(6)	05/2025	—		(1)		—		(1)
						29,111		28,604		5.3		28,077
Paper & Forest Products
Messenger, LLC	One stop	L + 6.50%	(c)(f)	7.50%	08/2023	2,031		2,016		0.4		1,929
Messenger, LLC#(5)	One stop	L + 6.50%		N/A(6)	08/2023	—		—		—		(2)
						2,031		2,016		0.4		1,927
Pharmaceuticals
ACP Ulysses Buyer, Inc.	Senior loan	L + 5.00%	(c)	6.00%	02/2026	4,878		4,834		0.9		4,878

Professional Services
Net Health Acquisition Corp.	One stop	L + 5.50%	(c)	6.50%	12/2023	866		860		0.2		866
Net Health Acquisition Corp.	One stop	L + 5.50%	(c)	6.50%	12/2023	746		740		0.1		746
Net Health Acquisition Corp.	One stop	L + 5.50%	(c)	6.50%	12/2023	111		110		—		111
Net Health Acquisition Corp.#(5)	One stop	L + 5.50%		N/A(6)	12/2023	—		(1)		—		—
Nexus Brands Group, Inc.	One stop	L + 6.00%	(c)	7.00%	11/2023	589		584		0.1		559
Nexus Brands Group, Inc.	One stop	L + 6.00%	(c)	7.00%	11/2023	512		508		0.1		487
Nexus Brands Group, Inc.#	One stop	L + 6.00%	(c)	7.00%	11/2023	293		292		0.1		278
Nexus Brands Group, Inc.#	One stop	L + 6.00%	(c)	7.00%	11/2023	212		211		—		201
Nexus Brands Group, Inc.#	One stop	L + 6.00%	(c)	7.00%	11/2023	10		9		—		5
Nexus Brands Group, Inc.#(5)	One stop	L + 6.00%		N/A(6)	11/2023	—		(1)		—		—
PlanSource Holdings, Inc.	One stop	L + 6.25%	(b)	7.25%	04/2025	2,818		2,794		0.5		2,818
PlanSource Holdings, Inc. #(5)	One stop	L + 6.25%		N/A(6)	04/2025	—		(1)		—		—
						6,157		6,105		1.1		6,071

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Real Estate Management & Development
Property Brands, Inc.	One stop	L + 5.75%	(c)	6.75%	01/2024	$	2,779	$	2,760	0.5	%	$	2,640
Property Brands, Inc.	One stop	L + 5.75%	(c)	6.75%	01/2024	2,596		2,574		0.5		2,466
Property Brands, Inc.	One stop	L + 5.75%	(c)	6.75%	01/2024	1,122		1,115		0.2		1,066
Property Brands, Inc.#	One stop	L + 5.75%	(c)	6.75%	01/2024	916		909		0.2		870
Property Brands, Inc.#	One stop	L + 5.75%	(c)	6.75%	01/2024	395		392		0.1		375
Property Brands, Inc.#	One stop	L + 5.75%	(c)	6.75%	01/2024	336		333		0.1		319
Property Brands, Inc.#	One stop	L + 5.75%	(c)	6.75%	01/2024	334		332		0.1		318
Property Brands, Inc.#	One stop	L + 5.75%	(c)	6.75%	01/2024	263		262		—		250
Property Brands, Inc.#	One stop	L + 5.75%	(c)	6.75%	01/2024	139		138		—		132
Property Brands, Inc.#	One stop	L + 5.75%	(c)	6.75%	01/2024	100		99		—		95
Property Brands, Inc.#(5)	One stop	L + 5.75%		N/A(6)	01/2024	—		(6)		—		(49)
MRI Software LLC	One stop	L + 5.50%	(c)	6.50%	02/2026	14,356		14,252		2.6		13,998
MRI Software LLC	One stop	L + 5.50%	(c)	6.50%	02/2026	1,803		1,758		0.3		1,758
MRI Software LLC#(5)	One stop	L + 5.50%		N/A(6)	02/2026	—		(2)		—		(7)
MRI Software LLC#(5)	One stop	L + 5.50%		N/A(6)	02/2026	—		(5)		—		(28)
MRI Software LLC#(5)	One stop	L + 5.50%		N/A(6)	02/2026	—		(4)		—		(9)
						25,139		24,907		4.6		24,194
Road & Rail
Internet Truckstop Group LLC	One stop	L + 5.50%	(c)	6.50%	04/2025	8,036		7,886		1.5		8,036
Internet Truckstop Group LLC#(5)	One stop	L + 5.50%		N/A(6)	04/2025	—		(2)		—		—
						8,036		7,884		1.5		8,036

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Software
Apptio, Inc.	One stop	L + 7.25%	(d)	8.25%	01/2025	$	12,605	$	12,424	2.4	%	$	12,605
Apptio, Inc. #(5)	One stop	L + 7.25%		N/A(6)	01/2025	—		(1)		—		—
Astute Holdings, Inc.	One stop	L + 6.50%	(c)	7.50%	04/2025	2,783		2,755		0.5		2,783
Astute Holdings, Inc. #	One stop	L + 6.50%	(c)	7.50%	04/2025	1,161		1,149		0.2		1,161
Astute Holdings, Inc. #(5)	One stop	L + 6.50%		N/A(6)	04/2025	—		(1)		—		—
Axiom Merger Sub Inc.#	One stop	L + 5.25%	(c)	6.47%	04/2026	1,153		1,137		0.2		1,153
Axiom Merger Sub Inc.#(7)(8)	One stop	E + 5.50%	(g)	5.50%	04/2026	480		474		0.1		491
Axiom Merger Sub Inc.#	One stop	L + 5.25%	(d)	6.25%	04/2026	15		14		—		15
Azul Systems, Inc.#	Senior loan	L + 5.00%	(c)	6.00%	04/2027	9,492		9,403		1.8		9,492
Azul Systems, Inc.#(5)	Senior loan	L + 5.00%		N/A(6)	04/2026	—		(1)		—		—
Bearcat Buyer, Inc.	Senior loan	L + 4.25%	(c)	5.25%	07/2026	578		572		0.1		578
Bearcat Buyer, Inc.	Senior loan	L + 4.25%	(c)	5.25%	07/2026	153		152		—		153
Bearcat Buyer, Inc.#	Senior loan	L + 4.25%	(c)	5.25%	07/2026	65		63		—		65
Bearcat Buyer, Inc.#	Senior loan	L + 4.25%		N/A(6)	07/2024	—		—		—		—
Bullhorn, Inc.	One stop	L + 5.75%	(c)	6.75%	09/2026	13,545		13,308		2.5		13,342
Bullhorn, Inc.#(7)(8)	One stop	L + 6.00%	(h)	6.06%	09/2026	2,417		2,374		0.5		2,461
Bullhorn, Inc.#(7)(8)	One stop	L + 5.75%	(c)	5.75%	09/2026	970		953		0.2		996
Bullhorn, Inc.#	One stop	L + 5.75%	(c)(f)	6.75%	09/2026	665		654		0.1		655
Bullhorn, Inc.	One stop	L + 5.75%	(c)	6.75%	09/2026	610		594		0.1		600
Bullhorn, Inc.#	One stop	L + 5.75%	(c)	6.75%	09/2026	530		521		0.1		522
Bullhorn, Inc.#(5)	One stop	L + 5.75%		N/A(6)	09/2026	—		(5)		—		(4)
Bullhorn, Inc.#(5)	One stop	L + 5.75%		N/A(6)	09/2026	—		(26)		—		(22)
Calabrio, Inc.	One stop	L + 6.50%	(c)	7.50%	06/2025	22,076		21,904		4.2		22,076
Calabrio, Inc. #	One stop	L + 6.50%	(a)	7.50%	06/2025	60		59		—		60
Cloudbees, Inc.#	One stop	L + 9.00%	(a)	9.50% cash/0.50% PIK	05/2023	846		834		0.2		846
Cloudbees, Inc.	One stop	L + 9.00%	(a)	9.50% cash/0.50% PIK	05/2023	703		688		0.1		703
Cloudbees, Inc.#	One stop	L + 9.00%	(a)	9.50% cash/0.50% PIK	05/2023	497		495		0.1		497
Cloudbees, Inc.#	One stop	L + 8.50%		N/A(6)	05/2023	—		—		—		—
Confluence Technologies, Inc.	One stop	L + 5.75%	(a)	6.75%	03/2024	8,416		8,369		1.6		8,331
Confluence Technologies, Inc.#	One stop	L + 5.75%	(a)	6.75%	03/2024	20		19		—		18
Convercent, Inc.	One stop	L + 9.00%	(c)	8.25% cash/2.75% PIK	12/2024	706		691		0.1		715
Convercent, Inc.#	Subordinated debt	N/A		4.00%	11/2020	35		35		—		44
Convercent, Inc.#	One stop	L + 9.00%	(c)	N/A(6)	12/2024	—		—		—		—
Convercent, Inc.#(5)	One stop	L + 9.00%		N/A(6)	12/2024	—		(1)		—		—
Digital Guardian, Inc.#	One stop	L + 9.50%	(c)	7.50% cash/3.00% PIK	06/2023	1,697		1,691		0.3		1,757
Digital Guardian, Inc.#	Subordinated debt	N/A		8.00% PIK	06/2023	2		1		—		2
Digital Guardian, Inc.#	One stop	L + 5.00%		N/A(6)	06/2023	—		—		—		1
Diligent Corporation	One stop	L + 6.25%	(c)	7.25%	08/2025	28,054		27,604		5.2		27,352
Diligent Corporation#(5)	One stop	L + 6.25%		N/A(6)	08/2025	—		(12)		—		(22)
Diligent Corporation#(5)	One stop	L + 6.25%		N/A(6)	08/2025	—		(57)		—		(50)
GS Acquisitionco, Inc.	One stop	L + 5.75%	(d)	6.75%	05/2024	15,560		15,439		2.9		15,560
GS Acquisitionco, Inc.#	One stop	L + 5.75%	(c)	6.75%	05/2024	4,382		4,347		0.8		4,382
GS Acquisitionco, Inc.#	One stop	L + 5.75%	(d)	6.75%	05/2024	1,147		1,137		0.2		1,147
GS Acquisitionco, Inc.#	One stop	L + 5.75%	(c)	6.75%	05/2024	1,058		1,049		0.2		1,058
GS Acquisitionco, Inc.#	One stop	L + 5.75%	(c)	6.75%	05/2024	663		657		0.1		663

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Software - (continued)
GS Acquisitionco, Inc.#	One stop	L + 5.75%	(c)(d)	6.75%	05/2024	$	111	$	110	—	%	$	111
ICIMS, Inc.	One stop	L + 6.50%	(c)	7.50%	09/2024	3,240		3,200		0.6		3,240
ICIMS, Inc.	One stop	L + 6.50%	(c)	7.50%	09/2024	1,065		1,056		0.2		1,065
ICIMS, Inc.#(5)	One stop	L + 6.50%		N/A(6)	09/2024	—		(1)		—		—
Impartner, Inc.	Senior loan	L + 9.50%	(c)	9.30% cash/2.00% PIK	08/2025	1,155		1,148		0.2		1,189
Impartner, Inc.#(5)	Senior loan	L + 9.50%		N/A(6)	08/2025	—		(1)		—		5
Impartner, Inc.#	Senior loan	L + 9.50%		N/A(6)	08/2025	—		—		—		—
Infogix, Inc.	One stop	L + 7.00%	(c)	8.00%	04/2024	1,457		1,453		0.3		1,457
Infogix, Inc.	One stop	L + 7.00%	(c)	8.00%	04/2024	229		227		0.1		229
Infogix, Inc.#	One stop	L + 7.00%	(c)	8.00%	04/2024	45		45		—		45
Instructure, Inc.	One stop	L + 7.00%	(c)	8.00%	03/2026	28,851		28,521		5.5		28,851
Instructure, Inc.#(5)	One stop	L + 7.00%		N/A(6)	03/2026	—		(2)		—		—
Integral Ad Science, Inc.	One stop	L + 7.25%	(c)	7.00% cash/1.25% PIK	07/2024	3,562		3,520		0.7		3,562
Integral Ad Science, Inc.#(5)	One stop	L + 6.00%		N/A(6)	07/2023	—		(1)		—		(2)
Integration Appliance, Inc.	One stop	L + 7.25%	(d)	8.25%	08/2023	14,125		14,044		2.7		14,125
Integration Appliance, Inc.#	One stop	L + 7.25%	(d)	8.25%	08/2023	1		1		—		1
Invoice Cloud, Inc.#	One stop	L + 6.50%	(c)	4.25% cash/3.25% PIK	02/2024	1,113		1,106		0.2		1,091
Invoice Cloud, Inc.#	One stop	L + 6.50%	(c)	4.25% cash/3.25% PIK	02/2024	910		904		0.2		889
Invoice Cloud, Inc.#(5)	One stop	L + 6.00%		N/A(6)	02/2024	—		—		—		(1)
Kaseya Traverse Inc	One stop	L + 7.00%	(c)	5.09% cash/3.00% PIK	05/2025	14,196		13,989		2.7		14,196
Kaseya Traverse Inc#	One stop	L + 7.00%	(c)(d)	5.06% cash/3.00% PIK	05/2025	331		316		0.1		331
Kaseya Traverse Inc#	One stop	L + 6.50%	(c)	7.50%	05/2025	51		50		—		49
Kaseya Traverse Inc#(5)	One stop	L + 7.00%		N/A(6)	05/2025	—		(7)		—		—
Mindbody, Inc.#	One stop	L + 8.50%	(c)	8.00% cash/1.50% PIK	02/2025	11,750		11,665		2.1		11,045
Mindbody, Inc.#(5)	One stop	L + 8.00%		N/A(6)	02/2025	—		(1)		—		(9)
Ministry Brands, LLC	Senior loan	L + 4.00%	(b)	5.00%	12/2022	222		221		—		209
Ministry Brands, LLC#	Senior loan	L + 4.00%	(b)	5.00%	12/2022	130		130		—		122
Ministry Brands, LLC	Senior loan	L + 4.00%	(b)	5.00%	12/2022	127		127		—		119
mParticle, Inc.	One stop	L + 9.75%	(c)	7.50% cash/3.25% PIK	09/2025	1,251		1,234		0.2		1,234
mParticle, Inc.#	One stop	L + 9.75%		N/A(6)	09/2025	—		—		—		—
Namely, Inc.	One stop	L + 7.50%	(c)	8.25% cash/1.25% PIK	06/2024	2,118		2,100		0.4		2,075
Namely, Inc.#	One stop	L + 7.50%	(c)	8.25% cash/1.25% PIK	06/2024	798		793		0.2		782
Namely, Inc.#	One stop	L + 7.50%	(a)	8.25% cash/1.25% PIK	06/2024	35		35		—		34
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH	One stop	P + 6.75%	(f)	8.25% cash/1.75% PIK	10/2024	132		126		—		138
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH#	One stop	L + 7.75%		N/A(6)	10/2024	—		—		—		1
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH#(5)	One stop	L + 7.75%		N/A(6)	10/2024	—		(7)		—		68
Personify, Inc.	One stop	L + 5.25%	(c)	6.25%	09/2024	3,475		3,452		0.7		3,475
Personify, Inc.#	One stop	L + 5.25%	(c)	6.25%	09/2024	30		30		—		30
RegEd Aquireco, LLC	Senior loan	L + 4.25%	(a)	5.25%	12/2024	1,217		1,209		0.2		1,144
RegEd Aquireco, LLC#	Senior loan	L + 4.25%	(a)(f)	5.08%	12/2024	66		65		—		56
RegEd Aquireco, LLC#(5)	Senior loan	L + 4.25%		N/A(6)	12/2024	—		(24)		—		—
Saturn Borrower Inc.	Senior loan	L + 6.50%	(c)	7.50%	09/2026	6,488		6,293		1.2		6,293
Saturn Borrower Inc.#(5)	Senior loan	L + 6.50%		N/A(6)	09/2026	—		(3)		—		(3)
SnapLogic, Inc.#	One stop	L + 8.75%	(c)	5.75% cash/5.50% PIK	09/2024	1,030		1,024		0.2		1,030
SnapLogic, Inc.(5)	One stop	L + 8.75%	(c)	5.75% cash/5.50% PIK	09/2024	3		(2)		—		3
SnapLogic, Inc.#	One stop	L + 8.75%		N/A(6)	09/2024	—		—		—		—

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Software - (continued)
Sontatype, Inc.	One stop	L + 6.75%	(d)	7.75%	12/2025	$	12,912	$	12,800	2.4	%	$	12,912
Sontatype, Inc.#(5)	One stop	L + 6.75%		N/A(6)	12/2025	—		(2)		—		—
Telesoft Holdings LLC	One stop	L + 5.75%	(a)	6.75%	12/2025	21,169		20,754		4.0		21,169
Telesoft Holdings LLC#(5)	One stop	L + 5.75%		N/A(6)	12/2025	—		(4)		—		—
TI Intermediate Holdings, LLC	Senior loan	L + 4.50%	(a)	4.65%	12/2024	820		814		0.2		820
TI Intermediate Holdings, LLC#	Senior loan	L + 4.50%	(a)	4.65%	12/2024	21		21		—		21
Togetherwork Holdings, LLC	One stop	L + 5.75%	(a)	6.75%	03/2025	1,960		1,938		0.4		1,941
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	501		495		0.1		496
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	479		473		0.1		474
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	474		468		0.1		469
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	441		436		0.1		437
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	405		400		0.1		401
Togetherwork Holdings, LLC	One stop	L + 5.75%	(a)	6.75%	03/2025	304		300		0.1		300
Togetherwork Holdings, LLC	One stop	L + 5.75%	(a)	6.75%	03/2025	202		200		—		200
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	183		180		—		181
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2024	150		148		—		149
Togetherwork Holdings, LLC	One stop	L + 5.75%	(a)	6.75%	03/2025	82		82		—		82
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	18		17		—		17
Togetherwork Holdings, LLC#	One stop	L + 5.75%	(a)	6.75%	03/2025	16		16		—		16
Transact Holdings, Inc.	Senior loan	L + 4.75%	(a)	4.90%	04/2026	758		748		0.1		716
Trintech, Inc.	One stop	L + 6.00%	(c)	7.00%	12/2023	2,093		2,079		0.4		2,093
Trintech, Inc.	One stop	L + 6.00%	(c)	7.00%	12/2023	1,041		1,034		0.2		1,041
Trintech, Inc.#	One stop	L + 6.00%	(c)	7.00%	12/2023	150		149		—		150
True Commerce, Inc.	One stop	L + 5.75%	(c)	6.75%	11/2023	1,241		1,233		0.2		1,241
True Commerce, Inc.#	One stop	L + 5.75%		N/A(6)	11/2023	—		—		—		—
Upserve, Inc.	One stop	L + 8.00%	(e)	9.00%	07/2023	1,694		1,685		0.3		1,660
Upserve, Inc.#	One stop	L + 8.00%	(e)	9.00%	07/2023	565		563		0.1		554
Upserve, Inc.#(5)	One stop	L + 8.00%		N/A(6)	07/2023	—		—		—		(1)
Vector CS Midco Limited & Cloudsense Ltd.#(7)(8)(9)	One stop	N/A		4.50% cash/3.55% PIK	05/2024	1,985		1,972		0.4		1,964
Vector CS Midco Limited & Cloudsense Ltd.#(7)(8)(9)	One stop	L + 7.25%	(h)	5.30% cash/2.75% PIK	05/2024	66		66		—		65
Workforce Software, LLC	One stop	L + 6.50%	(c)	7.50%	07/2025	10,956		10,781		2.1		10,956
Workforce Software, LLC#(5)	One stop	L + 6.50%		N/A(6)	07/2025	—		(1)		—		—
						293,144		289,452		54.9		290,989

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Specialty Retail
2nd Ave. LLC	One stop	L + 5.50%	(d)	6.50%	09/2025	$	1,380	$	1,369	0.3	%	$	1,297
2nd Ave. LLC#	One stop	L + 5.50%	(d)	6.56%	09/2025	50		50		—		47
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	1,521		1,510		0.3		1,521
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	1,447		1,432		0.3		1,447
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	1,108		1,099		0.2		1,108
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	876		869		0.2		876
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	747		741		0.2		747
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	617		612		0.1		617
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	598		593		0.1		598
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	486		482		0.1		486
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	444		441		0.1		444
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	443		439		0.1		443
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	383		380		0.1		383
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	194		192		—		194
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	190		189		—		190
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	147		146		—		147
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	108		107		—		108
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	95		94		—		95
Imperial Optical Midco Inc.#	One stop	L + 8.25%	(a)	7.25% cash/2.00% PIK	08/2023	49		48		—		49
Imperial Optical Midco Inc.#	One stop	L + 6.25%		N/A(6)	08/2023	—		—		—		—
Imperial Optical Midco Inc.#(5)	One stop	L + 8.25%		N/A(6)	08/2023	—		(15)		—		—
Jet Equipment & Tools Ltd.#(7)(8)(10)	One stop	L + 5.25%	(a)	6.25%	11/2024	4,257		4,220		0.8		4,181
Jet Equipment & Tools Ltd.(7)(10)	One stop	L + 5.25%	(a)	6.25%	11/2024	3,356		3,331		0.6		3,356
Jet Equipment & Tools Ltd.(7)(10)	One stop	L + 5.25%	(a)	6.25%	11/2024	1,031		1,024		0.2		1,031
Jet Equipment & Tools Ltd.(7)(10)	One stop	L + 5.25%	(a)	6.25%	11/2024	397		393		0.1		397
Jet Equipment & Tools Ltd.#(5)(7)(8)(10)	One stop	L + 5.25%		N/A(6)	11/2024	—		(1)		—		—
Pet Supplies Plus, LLC	Senior loan	L + 4.50%	(c)	5.50%	12/2024	3,308		3,285		0.6		3,308
Pet Supplies Plus, LLC#(5)	Senior loan	L + 4.50%		N/A(6)	12/2023	—		(1)		—		—
PPV Intermediate Holdings II, LLC#	One stop	L + 6.00%	(a)(c)(d)	7.46%	05/2023	1,701		1,700		0.3		1,679
PPV Intermediate Holdings II, LLC#	One stop	L + 6.00%	(a)	7.00%	05/2023	349		349		0.1		345
PPV Intermediate Holdings II, LLC#	One stop	L + 6.00%	(a)	7.00%	05/2023	208		208		—		206
PPV Intermediate Holdings II, LLC#	One stop	L + 6.00%	(a)	7.00%	05/2023	150		144		—		148
PPV Intermediate Holdings II, LLC#	One stop	L + 6.00%	(d)(f)	7.69%	05/2023	47		47		—		46
PPV Intermediate Holdings II, LLC#	One stop	L + 6.00%	(a)	7.00%	05/2023	45		44		—		44
PPV Intermediate Holdings II, LLC#	One stop	N/A		7.90% PIK	05/2023	8		8		—		8
PPV Intermediate Holdings II, LLC#(5)	One stop	L + 6.00%		N/A(6)	05/2023	—		(47)		—		(42)
Sola Franchise, LLC and Sola Salon Studios, LLC	One stop	L + 5.50%	(c)	6.50%	10/2024	925		918		0.2		906
Sola Franchise, LLC and Sola Salon Studios, LLC#	One stop	L + 5.50%	(c)	6.50%	10/2024	670		666		0.1		657
Sola Franchise, LLC and Sola Salon Studios, LLC#	One stop	L + 5.50%	(c)(f)	7.09%	10/2024	43		42		—		42
Sola Franchise, LLC and Sola Salon Studios, LLC#(5)	One stop	L + 5.50%		N/A(6)	10/2024	—		(6)		—		—
Southern Veterinary Partners, LLC#	One stop	L + 6.00%	(c)	7.00%	05/2025	2,672		2,643		0.5		2,726
Southern Veterinary Partners, LLC#	One stop	L + 6.00%	(c)	7.00%	05/2025	2,406		2,380		0.5		2,454
Southern Veterinary Partners, LLC#	One stop	L + 6.00%	(c)	7.00%	05/2025	2,096		2,073		0.4		2,138
Southern Veterinary Partners, LLC#	One stop	L + 6.00%	(d)	7.00%	05/2025	2,072		2,049		0.4		2,113
Southern Veterinary Partners, LLC#	One stop	L + 6.00%	(d)	7.00%	05/2025	1,894		1,873		0.4		1,932

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)		Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Specialty Retail - (continued)
Southern Veterinary Partners, LLC#	One stop	L + 6.00%	(d)	7.00%	05/2025	$	1,746	$	1,727	0.3	%	$	1,781
Southern Veterinary Partners, LLC#(5)	One stop	L + 6.00%		N/A(6)	05/2025	—		(185)		0.1		334
Titan Fitness, LLC	One stop	L + 4.75%	(b)(c)	5.75%	02/2025	6,656		6,607		1.1		5,857
Titan Fitness, LLC#	One stop	L + 4.75%	(c)	5.75%	02/2025	787		782		0.1		693
Titan Fitness, LLC#	One stop	L + 4.75%	(c)	5.75%	02/2025	237		235		—		207
Titan Fitness, LLC#(5)	One stop	L + 4.75%		N/A(6)	02/2025	—		(4)		—		—
Vermont Aus Pty Ltd#(7)(8)(11)	One stop	L + 4.75%	(i)	4.89%	12/2024	439		433		0.1		454
Vermont Aus Pty Ltd#(7)(8)(11)	One stop	L + 4.75%	(i)	4.89%	12/2024	32		29		—		36
						48,415		47,744		9.0		47,834
Textiles, Apparel and Luxury Goods
Protective Industrial Products, Inc.	Senior loan	L + 4.50%	(c)	5.50%	01/2024	2,789		2,766		0.5		2,789
Total debt investments						$	893,497	$	882,355	165.2	%	$	875,642

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)	Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)	Amortized Cost		Percentage of Net Assets		Fair Value (4)
Equity investments(14)(15)
Automobiles
Grease Monkey International, LLC#	LLC units	N/A	N/A	N/A	73	$	73	0.1	%	$	225
Quick Quack Car Wash Holdings, LLC#	LLC units	N/A	N/A	N/A	—	93		—		90
						166		0.1		315
Biotechnology
BIO18 Borrower, LLC#(16)	LLC units	N/A	N/A	N/A	141	246		0.1		395

Chemicals
Inhance Technologies Holdings LLC#	LLC units	N/A	N/A	N/A	—	34		—		12

Diversified Consumer Services
EWC Growth Partners LLC#	LLC interest	N/A	N/A	N/A	—	25		—		2

Electronic Equipment, Instruments and Components
ES Acquisition LLC#	LP interest	N/A	N/A	N/A	—	333		0.1		560

Food & Staples Retailing
Captain D's, LLC#	LLC interest	N/A	N/A	N/A	15	15		—		33
Mendocino Farms, LLC#	Common stock	N/A	N/A	N/A	59	257		0.1		284
Ruby Slipper Cafe LLC, The#	LLC units	N/A	N/A	N/A	6	61		—		14
Ruby Slipper Cafe LLC, The#	LLC units	N/A	N/A	N/A	—	4		—		2
Wood Fired Holding Corp.#	LLC units	N/A	N/A	N/A	103	103		—		35
Wood Fired Holding Corp.#	LLC units	N/A	N/A	N/A	103	—		—		—
						440		0.1		368
Health Care Technology
Connexin Software, Inc.#	LLC interest	N/A	N/A	N/A	26	26		—		35
HSI Halo Acquisition, Inc.#	Preferred stock	N/A	N/A	N/A	—	75		—		66
HSI Halo Acquisition, Inc.#	Preferred stock	N/A	N/A	N/A	—	—		—		—
Caliper Software, Inc.#	Preferred stock	N/A	N/A	N/A	1	596		0.2		705
Caliper Software, Inc.#	Common stock	N/A	N/A	N/A	53	53		—		142
Caliper Software, Inc.#	Preferred stock	N/A	N/A	N/A	—	8		—		11
						758		0.2		959
Health Care Equipment & Supplies
Aspen Medical Products, LLC#	Common stock	N/A	N/A	N/A	—	17		—		16
Blue River Pet Care, LLC#	LLC units	N/A	N/A	N/A	—	207		—		246
CMI Parent Inc.#	LLC units	N/A	N/A	N/A	—	492		0.1		519
CMI Parent Inc.#	LLC units	N/A	N/A	N/A	5	5		—		—
						721		0.1		781
Health Care Providers & Services
CRH Healthcare Purchaser, Inc.#	LP interest	N/A	N/A	N/A	102	102		—		170
Elite Dental Partners LLC#	LLC units	N/A	N/A	N/A	—	444		0.1		444
Elite Dental Partners LLC#	LLC units	N/A	N/A	N/A	—	191		—		191
Elite Dental Partners LLC#	LLC units	N/A	N/A	N/A	—	—		—		34
Encorevet Group LLC#	LLC units	N/A	N/A	N/A	2	223		0.1		196
ERG Buyer, LLC#	LLC units	N/A	N/A	N/A	—	165		—		6
ERG Buyer, LLC#	LLC units	N/A	N/A	N/A	2	2		—		—
Krueger-Gilbert Health Physics, LLC#	LLC interest	N/A	N/A	N/A	46	46		—		49
MD Now Holdings, Inc.#	LLC units	N/A	N/A	N/A	3	33		—		39
Midwest Veterinary Partners, LLC#	LLC units	N/A	N/A	N/A	—	13		—		14
Midwest Veterinary Partners, LLC#	LLC units	N/A	N/A	N/A	3	—		—		7
Summit Behavioral Healthcare, LLC#(16)	LLC interest	N/A	N/A	N/A	—	14		—		15
Summit Behavioral Healthcare, LLC#	LLC interest	N/A	N/A	N/A	—	—		—		—
						1,233		0.2		1,165

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)	Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)	Amortized Cost		Percentage of Net Assets		Fair Value (4)
Hotels, Restaurants and Leisure
SSRG Holdings, LLC#	LLC units	N/A	N/A	N/A	40	$	399	0.1	%	$	230
Tropical Smoothie Cafe Holdings, LLC#(16)	LP units	N/A	N/A	N/A	2	220		—		220
						619		0.1		450
Household Durables
Groundworks LLC#	LLC units	N/A	N/A	N/A	—	53		—		71

Insurance
Majesco#	LP units	N/A	N/A	N/A	—	106		—		106
Majesco#	LP units	N/A	N/A	N/A	24	—		—		—
Orchid Underwriters Agency, LLC#	LP interest	N/A	N/A	N/A	22	22		—		21
						128		—		127
IT Services
Appriss Holdings, Inc.#	Preferred stock	N/A	N/A	N/A	—	52		—		62
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.#	Preferred stock	N/A	N/A	N/A	217	170		0.1		610
Arctic Wolfs Networks, Inc. and Arctic Wolf Networks Canada, Inc.#	Warrant	N/A	N/A	N/A	75	59		0.1		151
Centrify Corporation#	LP interest	N/A	N/A	N/A	—	170		—		84
Centrify Corporation#	LP interest	N/A	N/A	N/A	60	—		—		—
Episerver, Inc.#	Common stock	N/A	N/A	N/A	17	173		—		111
PCS Intermediate II Holdings, LLC#	LLC units	N/A	N/A	N/A	13	126		—		133
Red Dawn SEI Buyer, Inc.#	LP units	N/A	N/A	N/A	219	219		0.1		215
						969		0.3		1,366
Leisure Products
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	15	24		—		17
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	10	16		—		12
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	9	13		—		10
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	8	12		—		8
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	3	5		—		4
WBZ Investment LLC#	LLC interest	N/A	N/A	N/A	—	—		—		—
						70		—		51
Professional Services
Net Health Acquisition Corp.#	LP interest	N/A	N/A	N/A	1	126		—		124
Nexus Brands Group, Inc.#	LP interest	N/A	N/A	N/A	—	49		—		43
						175		—		167
Real Estate Management & Development
Property Brands, Inc.#	LLC units	N/A	N/A	N/A	11	106		—		167

Road & Rail
Internet Truckstop Group LLC#	LP interest	N/A	N/A	N/A	146	146		—		130

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


	Investment Type	Spread Above Index(1)	Interest Rate(2)	Maturity Date	Principal ($) / Shares(3)		Amortized Cost		Percentage of Net Assets		Fair Value (4)
Software
Astute Holdings, Inc. #	LP units	N/A	N/A	N/A	—		$	83	0.1	%	$	155
Calabrio, Inc. #	Common stock	N/A	N/A	N/A	58		444		0.2		764
Cloudbees, Inc.#	Preferred stock	N/A	N/A	N/A	15		93		—		78
Cloudbees, Inc.#	Warrant	N/A	N/A	N/A	27		40		—		63
Confluence Technologies, Inc.#	LLC interest	N/A	N/A	N/A	—		53		—		94
Convercent, Inc.#	Warrant	N/A	N/A	N/A	82		16		—		36
Digital Guardian, Inc.#	Preferred stock	N/A	N/A	N/A	72		87		—		62
Digital Guardian, Inc.#	Warrant	N/A	N/A	N/A	25		43		—		43
Digital Guardian, Inc.#	Preferred stock	N/A	N/A	N/A	15		27		—		26
Digital Guardian, Inc.#	Preferred stock	N/A	N/A	N/A	14		25		—		28
Digital Guardian, Inc.#	Warrant	N/A	N/A	N/A	3		4		—		10
GS Acquisitionco, Inc.#	LP interest	N/A	N/A	N/A	—		44		—		123
MetricStream, Inc.#	Warrant	N/A	N/A	N/A	44		67		—		47
mParticle, Inc.#	Warrant	N/A	N/A	N/A	10		4		—		37
Namely, Inc.#	Warrant	N/A	N/A	N/A	8		14		—		13
Onapsis, Inc., Virtual Forge GMBH and Onapsis GMBH#	Warrant	N/A	N/A	N/A	2		6		—		16
Personify, Inc.#	LLC units	N/A	N/A	N/A	145		145		0.1		218
Pride Midco, Inc.#	Preferred stock	N/A	N/A	N/A	1		556		0.1		683
RegEd Aquireco, LLC#	LP interest	N/A	N/A	N/A	—		70		—		36
RegEd Aquireco, LLC#	LP interest	N/A	N/A	N/A	1		—		—		—
Saturn Borrower Inc.#	LP units	N/A	N/A	N/A	132		132		—		132
SnapLogic, Inc.#	Preferred stock	N/A	N/A	N/A	66		164		0.1		243
SnapLogic, Inc.#	Warrant	N/A	N/A	N/A	16		6		—		43
Telesoft Holdings LLC#	LP interest	N/A	N/A	N/A	131		131		—		127
							2,254		0.6		3,077
Specialty Retail
2nd Ave. LLC#	LP interest	N/A	N/A	N/A	157		157		0.1		135
Imperial Optical Midco Inc.#	Preferred stock	N/A	N/A	N/A	—		110		—		111
Jet Equipment & Tools Ltd.#(7)(8)(10)	LLC units	N/A	N/A	N/A	—		173		0.1		459
Pet Supplies Plus, LLC#(16)	LLC units	N/A	N/A	N/A	34		34		—		100
PPV Intermediate Holdings II, LLC#	LLC interest	N/A	N/A	N/A	84		84		—		115
Sola Franchise, LLC and Sola Salon Studios, LLC#	LLC units	N/A	N/A	N/A	1		88		—		106
Sola Franchise, LLC and Sola Salon Studios, LLC#	LLC units	N/A	N/A	N/A	—		18		—		20
							664		0.2		1,046

Total equity investments							$	9,140	2.1	%	$	11,209

Total investments					$	893,497	$	891,495	167.3	%	$	886,851

Money market funds (included in cash and cash equivalents and restricted cash and cash equivalents)
BlackRock Liquidity Funds T-Fund Institutional Shares (CUSIP 09248U718)			0.03% (17)				$	8,705	1.6	%	$	8,705
Total money market funds							$	8,705	1.6	%	$	8,705

Total investments and money market funds							$	900,200	168.9	%	$	895,556

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2020

(In thousands)


#						Denotes that all or a portion of the loan collateralizes the DB Credit Facility (as defined in Note 8).

(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 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, 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 September 30, 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 September 30, 2020, as the loan may have priced or repriced based on an index rate prior to September 30, 2020.

(a) Denotes that all or a portion of the loan was indexed to the 30-day LIBOR, which was 0.15% as of September 30, 2020.

(b) Denotes that all or a portion of the loan was indexed to the 60-day LIBOR, which was 0.19% as of September 30, 2020.

(d) Denotes that all or a portion of the loan was indexed to the 180-day LIBOR, which was 0.26% as of September 30, 2020.

(e) Denotes that all or a portion of the loan was indexed to the 360-day LIBOR, which was 0.36% as of September 30, 2020.

(f) Denotes that all or a portion of the loan was indexed to the Prime rate, which was 3.25% as of September 30, 2020.

(g) Denotes that all or a portion of the loan was indexed to the 90-day EURIBOR, which was -0.50% as of September 30, 2020.

(h) Denotes that all or a portion of the loan was indexed to the 90-day GBP LIBOR, which was 0.06% as of September 30, 2020.

(i) Denotes that all or a portion of the loan was indexed to the Australia Three Month Interbank Rate, which was 0.14% as of September 30, 2020.

(j) Denotes that all or a portion of the loan was indexed to the Canadian Bank Acceptances Rate, which was 0.51% as of September 30, 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 September 30, 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 7. Fair Value Measurements.

(6)The entire commitment was unfunded as of September 30, 2020. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.

(7)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, 2020, total non-qualifying assets at fair value represented 3.7% of the Company’s total assets calculated in accordance with the 1940 Act.

(9)The headquarters of this portfolio company is located in the United Kingdom.

(10)The headquarters of this portfolio company is located in Canada.

(11)The headquarters of this portfolio company is located in Australia.

(12)The headquarters of this portfolio company is located in Luxembourg.

(13)The headquarters of this portfolio company is located in Andorra.

(14)Equity investments are non-income producing securities unless otherwise noted.

(15)Ownership of certain equity investments occurs through a holding company or partnership.

(16)The Company holds an equity investment that entitles it to receive preferential dividends.

(17)The rate shown is the annualized seven-day yield as of September 30, 2020.

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

Note 1. Organization

Golub Capital BDC 3, Inc. (“GBDC 3” and, collectively with its subsidiaries, the “Company”) is an externally managed, closed-end, non-diversified management investment company that was formed on August 1, 2017 and elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), on September 29, 2017. On October 2, 2017, the date of the commencement of operations, the Company entered into subscription agreements (collectively, the “Subscription Agreements”) to sell shares of GBDC 3's common stock in private placements. In addition, for U.S. federal income tax purposes, GBDC 3 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 that are, in most cases, sponsored by private equity firms. 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, primarily U.S. middle-market companies. The Company has entered into an investment advisory agreement (the “Investment Advisory Agreement”) 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.

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”) as established by the Financial Accounting Standards Board (“FASB”) for 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 financial statements and notes thereto in the Company’s Form 10-K for the year ended September 30, 2020, 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.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

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 7. 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 ASC Topic 946 and Regulation S-X, 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, GBDC 3 Holdings LLC (“GBDC 3 Holdings”), GBDC 3 Funding LLC (“GBDC 3 Funding”) and GBDC 3 Funding II LLC (“GBDC 3 Funding II”), in its consolidated financial statements.

Assets related to transactions that do not meet ASC Topic 860 - Transfers and Servicing (“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 GBDC 3 Holdings and GBDC 3 Funding, 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 3 (or any affiliate of GBDC 3).

Cash and 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 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.

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

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

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 6. Forward Currency Contracts for more information regarding the forward currency contracts.

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 months ended December 31, 2020 and 2019, interest income included $1,256 and $700, respectively, of accretion of discounts. For the three months ended December 31, 2020 and 2019, the Company received loan origination fees of $2,235 and $2,995, respectively.

For investments with contractual payment-in-kind (“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 months ended December 31, 2020 and 2019, the Company capitalized PIK interest of $572 and $247, 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 months ended December 31, 2020 and 2019, fee income included $303 and $32, respectively, of prepayment premiums, which fees are non-recurring.

For the three months ended December 31, 2020 and 2019, the Company received interest and fee income in cash, which excludes capitalized loan origination fees, in the amounts of $16,579 and $13,774, respectively.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

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 limited liability company (“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 amortized cost basis of the investment. For the three months ended December 31, 2020 and 2019, the Company recorded dividend income of $39 and $2 respectively, and return of capital distributions of $0 and $0, respectively.

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 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. As of December 31, 2020 and September 30, 2020, the Company had no portfolio company investments on non-accrual status.

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, 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 its 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. For the three months ended December 31, 2020 and 2019, the Company did not incur U.S. federal excise tax.

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

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

December 31, 2020. The Company's tax returns for the 2017 through 2019 tax years remain subject to examination by U.S. federal and most state tax authorities.

Distributions: Distributions to common stockholders are recorded on the record date. Subject to the discretion of and as determined by the Board, the Company intends to authorize and declare ordinary cash distributions based on a formula approved by the Board on a quarterly basis. 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 have not “opted out” of the DRIP will have their cash distribution automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash distribution. Shares issued under the DRIP will be issued at a price per share equal to the most recent net asset value (“NAV”) per share as determined by the Board (subject to adjustment to the extent required by Section 23 of the 1940 Act).

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 December 31, 2020 and September 30, 2020, the Company had deferred debt issuance costs of $1,769 and $1,191, 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 the three months ended December 31, 2020 and 2019 was $455 and $205, respectively.

Note 3. Stockholders’ Equity

GBDC 3 is authorized to issue 1,000,000 shares of preferred stock at a par value of $0.001 per share and 100,000,000 shares of common stock at a par value of $0.001 per share. Since the commencement of operations on October 2, 2017, GBDC 3 has entered into Subscription Agreements with several investors, including with affiliates of the Investment Adviser, providing for the private placement of GBDC 3’s common stock. Under the terms of the Subscription Agreements, investors are required to fund drawdowns to purchase GBDC 3’s common stock at a price per share equal to the most recent NAV per share as determined by the Board (subject to adjustment to the extent required by Section 23 of the 1940 Act) up to the amount of their respective capital subscriptions on an as-needed basis as determined by GBDC 3 with a minimum of 10 calendar days prior notice.

As of December 31, 2020 and September 30, 2020, the Company had the following subscriptions, pursuant to the Subscription Agreements, and contributions from its stockholders:


	As of December 31, 2020				As of September 30, 2020
	Subscriptions		Contributions		Subscriptions		Contributions
GBDC 3 Stockholders	$	927,111	$	507,353	$	921,786	$	507,353

As of December 31, 2020 and September 30, 2020, the ratio of total contributed capital to total capital subscriptions was 54.7% and 55.0%, respectively, and the Company had uncalled capital commitments of $419,758 and $414,433, respectively. During the three months ended December 31, 2020, undrawn subscriptions totaling $1,000 expired pursuant to the terms of the respective Subscription Agreements.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

The following table summarizes the shares of GBDC 3 common stock issued for the three months ended December 31, 2020 and 2019:


	Date	Shares Issued	NAV ($) per share	Proceeds

Shares issued for the three months ended December 31, 2019
Issuance of shares	10/14/19	1,900,611.630	15.00	28,509
Issuance of shares	11/18/19	1,900,611.628	15.00	28,509
Issuance of shares	12/19/19	2,660,856.371	15.00	39,913









Shares issued for capital drawdowns		6,462,079.629		$	96,931

Issuance of shares (1)	11/26/19	185,724.541	15.00	2,786
Issuance of shares (1)	12/27/19	173,246.102	15.00	2,599



Shares issued through DRIP		358,970.643		$	5,385



Shares issued for the three months ended December 31, 2020














Issuance of shares (1)	12/18/20	431,254.910	14.97	6,455		(2)





Shares issued through DRIP		431,254.910		$	6,455

(1)Shares issued through the DRIP.

(2)Proceeds reflect unrounded NAV per share multiplied by number of shares issued.

Note 4. 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, the Company. The Board most recently reapproved the Investment Advisory Agreement in May 2020. 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 the fair value of the average adjusted gross assets of the Company at the end of the two most recently completed calendar quarters (including assets purchased with borrowed funds, securitization-related assets, 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 for 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 GBDC 3, 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. For periods ending on or prior to the earlier of (1) the date of pricing of an initial public offering or listing on a national securities exchange of the shares of common stock of GBDC 3 or (2) a sale of all or substantially all of the Company’s assets to, or other liquidity event with, an entity for consideration of publicly listed securities of the acquirer (each, a “Liquidity Event”), the Investment Adviser has irrevocably agreed

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

to waive any base management fee in excess of 1.00% of the fair value of the Company’s average adjusted gross assets as calculated in accordance with the Investment Advisory Agreement as described above.

For the three months ended December 31, 2020 and 2019, the base management fees incurred by the Company were $3,330 and $2,397, respectively, and the base management fees irrevocably waived by the Investment Adviser were $908 and $654, respectively.

The Incentive Fee consists of three parts: the income component (the “Income Incentive Fee”), the capital gains component (the “Capital Gain Incentive Fee”) and the subordinated liquidation incentive component (the “Subordinated Liquidation Incentive Fee” and, together with the Income Incentive Fee and the Capital Gain Incentive Fee, the “Incentive Fee”).

The Income Incentive Fee is calculated quarterly in arrears based on Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter. “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.

Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. 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 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 Income 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 Income Incentive Fee would cause the Company to pay Income Incentive Fees and Capital Gain Incentive Fees on a cumulative basis that exceed the Incentive Fee Cap described below.

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 1.5% 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 the Company’s Pre-Incentive Fee Net Investment Income and make it easier for the Investment Adviser to surpass the fixed hurdle rate and receive an Income Incentive Fee. Pre-Incentive Fee Net Investment Income used to calculate this part of the Incentive Fee is also included in the amount of the Company’s total assets (excluding cash and cash equivalents but including assets purchased with borrowed funds, securitization-related assets, unrealized depreciation or appreciation on derivative instruments and cash collateral on deposit with custodian) used to calculate the base management fee.

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;

•50.0% of 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 the percentage at which amounts payable to the Investment Adviser pursuant to the Income Incentive Fee equal 20.0% of the Pre-Incentive Fee Net Investment Income that exceeds the hurdle rate as if a hurdle rate did not apply. This portion of

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

Pre-Incentive Fee Net Investment Income that exceeds the hurdle rate is referred to as the ‘‘catch-up’’ provision; and

•20.0% of the amount of Pre-Incentive Fee Net Investment Income, if any, that exceeds the catch-up provision in any calendar quarter.

The sum of these calculations yields the Income Incentive Fee. This amount is appropriately adjusted for any share issuances or repurchases during the quarter.

For the three months ended December 31, 2020 and 2019, the Income Incentive Fee incurred was $1,936 and $1,478, respectively.

For periods ending on or prior to the date of the closing of a Liquidity Event, the Investment Adviser has agreed to irrevocably waive that portion of the Income Incentive fee calculated under the Investment Advisory Agreement in amounts in excess of the following amounts (computed on a quarterly basis, in arrears):

•zero in any calendar quarter in which the Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate;

•50.0% 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 the percentage at which the amount payable to the Investment Adviser equals to 15.0% of the Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply. This portion of the Company’s Pre-Incentive Fee Net Investment Income that exceeds the hurdle rate is referred to as the “catch-up” provision; and

•15.0% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds the catch-up provision in any calendar quarter.

For the three months ended December 31, 2020 and 2019, the Income Incentive Fee irrevocably waived by the Investment Adviser was $142 and $161, respectively.

The second part of the Incentive Fee, 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), commencing with the calendar year ended December 31, 2017, less (b) the aggregate amount of any previously paid Capital Gain Incentive Fees. The Company’s ‘‘Capital Gain Incentive Fee Base’’ equals (1) the sum of (A) realized capital gains, if any, on a cumulative positive basis from September 29, 2017, the date the Company elected to be a BDC, through the end of each calendar year, (B) all realized capital losses on a cumulative basis and (C) all unrealized capital depreciation on a cumulative basis, less (2) unamortized deferred debt issuance costs as of the date of calculation, 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.

The Capital Gain Incentive Fee is calculated on a cumulative basis from September 29, 2017 through the end of each calendar year or termination of the Investment Advisory Agreement. For periods ending on or prior to the date of the closing of a Liquidity Event, the Investment Adviser has agreed to irrevocably waive that portion of the Capital Gain Incentive Fee, calculated as described above, in excess of 15.0% of the Capital Gain Incentive Fee Base, provided that any amounts so waived shall be deemed paid to the Investment Adviser for purposes of determining the Capital

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

Gain Incentive Fee payable after the closing of a public offering or listing. For the three months ended December 31, 2020 and 2019, the accrual of the Capital Gain Incentive Fee waiver was $0 and $136, respectively.

In accordance with GAAP, the Company 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 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. 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 15.0% prior to a Liquidity Event (20.0% following a Liquidity Event) 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 months ended December 31, 2020 and 2019, the Capital Gain Incentive Fee incurred was $0 and $544, respectively.

There was no Capital Gain Incentive Fee as calculated under the Investment Advisory Agreement (as described above) payable as of December 31, 2020 and September 30, 2020.

As of December 31, 2020 and September 30, 2020, there were no accruals for the capital gain incentive fee (net of waiver) under GAAP included in management and incentive fees payable on the Consolidated Statements of Financial Condition.

The third part of the Incentive Fee, the Subordinated Liquidation Incentive Fee, equals 15.0% of the net proceeds from a liquidation of the Company in excess of adjusted capital, as calculated immediately prior to liquidation. For purposes of this calculation, (a) ‘‘liquidation’’ includes any merger of the Company with another entity or the acquisition of all or substantially all of the shares of the Company’s common stock in a single or series of related transactions and (b) ‘‘adjusted capital’’ means the net asset value of the Company calculated immediately prior to liquidation in accordance with GAAP less unrealized capital appreciation that would have been subject to the Capital Gain Incentive Fee had capital gain been recognized on the transfer of such assets in the liquidation. The Investment Advisory Agreement provides that no Subordinated Liquidation Incentive Fee shall be payable for any liquidation that occurs more than six months after the date of an initial public offering of the Company’s common stock or a listing of the Company’s common stock on a national securities exchange. For periods prior to the date of the closing of a Liquidity Event, the Investment Adviser has agreed to waive the Subordinated Liquidation Incentive Fee.

The Company has structured the calculation of the Incentive Fee to include a fee limitation such that the Income Incentive Fee and the Capital Gain Incentive Fee will not be paid at any time if, after such payment, the cumulative Income Incentive Fees and Capital Gain Incentive Fees paid to date would exceed an incentive fee cap (the ‘‘Incentive Fee Cap’’). For periods ending on or prior to the date of the closing of a Liquidity Event, the Incentive Fee Cap in any quarter is equal to the difference between (a) 15.0% of Cumulative Pre-Incentive Fee Net Income and (b) cumulative incentive fees of any kind paid to the Investment Adviser by the Company since September 29, 2017. For periods beginning after the date of the closing of a Liquidity Event, the Incentive Fee Cap in any quarter will be equal to the difference, if positive, between (a) the sum of (i) 20.0% of Cumulative Pre-Incentive Fee Net Income for the period beginning on the date immediately following the closing of a Liquidity Event and (ii) 15.0% of Cumulative Pre-Incentive Fee Net Income for the period from September 29, 2017 and ending on the date of the closing of a Liquidity Event and (b) cumulative Income Incentive Fees and Capital Gain Incentive Fees paid to the Investment Adviser by the Company from September 29, 2017.

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. ‘‘Cumulative Pre-Incentive Fee Net Income’’ is equal to the sum of (a) Pre-Incentive Fee Net

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

Investment Income for each period since September 29, 2017 and (b) cumulative aggregate realized capital gains, cumulative aggregate realized capital losses, cumulative aggregate unrealized capital depreciation and cumulative aggregate unrealized capital appreciation since September 29, 2017.

The sum of the Income Incentive Fee, the Capital Gain Incentive Fee and the Subordinated Liquidation Incentive Fee is the Incentive Fee. Prior to the closing of a Liquidity Event, the Company will deposit one-third of each Income Incentive Fee and Capital Gain Incentive Fee payment into an escrow account (the “Escrow Account”) to be administered by U.S. Bank National Association (the “Escrow Agent”). Assets in the Escrow Account will be held by the Escrow Agent until the closing of a Liquidity Event at which time the Escrow Agent will release the assets to the Investment Adviser. If no Liquidity Event occurs prior to October 2, 2023, the Escrow Agent will return all assets in the Escrow Account to the Company for the benefit of the stockholders. For the three months ended December 31, 2020 and 2019, the Company deposited $557 and $409, respectively, into the Escrow Account.

Administration Agreement: Pursuant to the Administration Agreement, the Administrator furnishes the Company with office facilities and equipment and provides 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 for the allocable portion (subject to the review and approval of the Board) of the Administrator’s overhead and other expenses incurred by it in performing its obligations under the Administration Agreement, including rent, the 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. In addition, 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.

As of December 31, 2020 and September 30, 2020, included in accounts payable and accrued expenses is $344 and $328, respectively, for accrued allocated shared services under the Administration Agreement.

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 months ended December 31, 2020 and 2019 were $233 and $173, respectively. As of December 31, 2020 and September 30, 2020, included in accounts payable and accrued expenses were $216 and $237, respectively, for reimbursable expenses that were paid by the Administrator on behalf of the Company.

On August 1, 2017, GCOP LLC, an affiliate of the Investment Adviser, purchased 700.000 shares of common stock of the Company for an aggregate purchase price of $11. On October 1, 2018, GCOP LLC, entered into an additional Subscription Agreement for $10,000. On January 1, 2020, GCOP LLC, entered into an additional Subscription Agreement for $13,000. As of December 31, 2020, GCOP LLC has an aggregate commitment of $23,011. As of December 31, 2020, the Company has issued 580,220.714 shares of its common stock to GCOP LLC in exchange for aggregate capital contributions totaling $8,688 and has also issued 63,205.768 shares to GCOP LLC through the DRIP.

On October 2, 2017, GEMS Fund 4, L.P., a Delaware limited partnership whose general partner is controlled by the Investment Adviser, entered into a Subscription Agreement for an aggregate commitment of $27,500. As of December 31, 2020, the Company has issued 1,834,523.315 shares of its common stock to GEMS Fund 4, L.P. in exchange for aggregate capital contributions totaling $27,500.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

The Company is party to an unsecured revolving credit facility with the Investment Adviser (as amended, the “Adviser Revolver”) which, as of December 31, 2020, permits the Company to borrow a maximum of $40,000 and expires on September 29, 2023. Refer to Note 8. Borrowings for discussion of the Adviser Revolver.

Note 5. Investments

Investments as of December 31, 2020 and September 30, 2020 consisted of the following:


	As of December 31, 2020						As of September 30, 2020
	Principal		Amortized Cost		Fair Value		Principal		Amortized Cost		Fair Value
Senior secured	$	176,238	$	174,447	$	174,077	$	178,191	$	176,117	$	175,635
One stop	844,357		834,050		833,133		710,463		701,468		695,156
Second lien	6,281		6,193		6,260		4,806		4,734		4,805
Subordinated debt	37		36		49		37		36		46

Equity	N/A		10,691		13,983		N/A		9,140		11,209
Total	$	1,026,913	$	1,025,417	$	1,027,502	$	893,497	$	891,495	$	886,851

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.


	As of December 31, 2020				As of September 30, 2020
Amortized Cost:
United States
Mid-Atlantic	$	257,138	25.1	%	$	231,185	25.9	%
Midwest	180,306		17.6		163,767		18.4
Northeast	56,067		5.5		51,446		5.8
Southeast	196,586		19.2		175,793		19.7
Southwest	133,655		13.0		99,900		11.2
West	168,808		16.5		144,013		16.1
Canada	16,544		1.6		12,810		1.4
United Kingdom	8,236		0.8		2,038		0.2
Australia	463		0.0	*	462		0.1
Luxembourg	7,614		0.7		7,626		0.9
Andorra	—		—		2,455		0.3
Total	$	1,025,417	100.0	%	$	891,495	100.0	%

Fair Value:
United States
Mid-Atlantic	$	259,929	25.3	%	$	232,216	26.2	%
Midwest	178,120		17.3		161,171		18.2
Northeast	56,795		5.5		51,231		5.8
Southeast	194,783		19.0		173,860		19.6
Southwest	133,618		13.0		98,257		11.1
West	170,880		16.6		145,224		16.4
Canada	17,449		1.7		12,969		1.4
United Kingdom	8,400		0.8		2,029		0.2
Australia	526		0.1		490		0.0 *
Luxembourg	7,002		0.7		7,020		0.8
Andorra	—		—		2,384		0.3
Total	$	1,027,502	100.0	%	$	886,851	100.0	%

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)


*			Represents an amount less than 0.1%

The industry compositions of the portfolio at amortized cost and fair value as of December 31, 2020 and September 30, 2020 were as follows:


	As of December 31, 2020				As of September 30, 2020
Amortized Cost:
Airlines	$	7,614	0.7	%	$	7,626	0.9	%
Auto Components	664		0.1		666		0.1
Automobiles	30,867		3.0		10,291		1.2
Beverages	5,277		0.5		5,289		0.6
Biotechnology	3,695		0.3		3,702		0.4
Chemicals	3,279		0.3		3,286		0.4
Commercial Services and Supplies	49,893		4.9		31,478		3.5
Containers and Packaging	5,084		0.5		4,264		0.5
Diversified Consumer Services	13,275		1.3		2,587		0.3
Diversified Financial Services	21,119		2.1		20,926		2.3
Electronic Equipment, Instruments and Components	23,197		2.2		19,900		2.2
Food and Staples Retailing	7,265		0.7		7,241		0.8
Food Products	17,396		1.7		435		—	*
Health Care Technology	57,428		5.6		55,722		6.3
Healthcare Equipment & Supplies	32,404		3.2		26,339		3.0
Health Care Providers & Services	80,534		7.9		57,621		6.5
Hotels, Restaurants and Leisure	61,725		6.0		60,943		6.8
Household Durables	1,766		0.2		1,666		0.2
Household Products	1,226		0.1		1,224		0.1
Industrial Conglomerates	7,850		0.8		1,611		0.2
Insurance	40,925		4.0		37,600		4.2
Internet and Catalog Retail	2,311		0.2		2,360		0.3
IT Services	102,955		10.0		101,354		11.4
Leisure Products	2,501		0.2		2,486		0.3
Machinery	7,337		0.7		7,221		0.8
Marine	4,197		0.4		—		—
Oil, Gas and Consumable Fuels	28,607		2.8		28,604		3.2
Paper and Forest Products	2,003		0.2		2,016		0.2
Pharmaceuticals	4,824		0.5		4,834		0.5
Professional Services	6,865		0.7		6,280		0.7
Real Estate Management and Development	25,248		2.5		25,013		2.8
Road and Rail	8,018		0.8		8,030		0.9
Software	316,634		30.9		291,706		32.7
Specialty Retail	41,434		4.0		48,408		5.4
Textiles, Apparel and Luxury Goods	—		—		2,766		0.3
Total	$	1,025,417	100.0	%	$	891,495	100.0	%

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)


	As of December 31, 2020				As of September 30, 2020
Fair Value:
Airlines	$	7,002	0.7	%	$	7,020	0.8	%
Auto Components	667		0.1		655		0.1
Automobiles	31,001		3.0		10,547		1.2
Beverages	5,311		0.5		5,162		0.6
Biotechnology	3,914		0.4		3,885		0.4
Chemicals	3,163		0.3		3,105		0.3
Commercial Services and Supplies	49,267		4.8		30,473		3.4
Containers and Packaging	5,097		0.5		4,233		0.5
Diversified Consumer Services	13,195		1.3		2,525		0.3
Diversified Financial Services	21,391		2.1		20,991		2.4
Electronic Equipment, Instruments and Components	23,697		2.3		20,374		2.3
Food and Staples Retailing	7,160		0.7		6,882		0.8
Food Products	17,391		1.7		403		0.0*
Health Care Technology	57,007		5.5		55,131		6.2
Healthcare Equipment and Supplies	32,426		3.1		26,171		2.9
Healthcare Providers and Services	80,373		7.8		57,068		6.4
Hotels, Restaurants and Leisure	58,277		5.6		58,146		6.6
Household Durables	1,815		0.2		1,701		0.2
Household Products	1,235		0.1		1,233		0.1
Industrial Conglomerates	7,875		0.8		1,583		0.2
Insurance	41,792		4.1		37,869		4.3
Internet and Catalog Retail	2,136		0.2		2,258		0.2
IT Services	103,666		10.1		101,140		11.4
Leisure Products	2,238		0.2		2,239		0.3
Machinery	6,835		0.7		6,675		0.8
Marine	4,196		0.4		—		—
Oil, Gas and Consumable Fuels	28,765		2.8		28,077		3.2
Paper and Forest Products	1,935		0.2		1,927		0.2
Pharmaceuticals	4,866		0.5		4,878		0.6
Professional Services	6,853		0.6		6,238		0.7
Real Estate Management and Development	25,526		2.5		24,361		2.7
Road and Rail	8,132		0.8		8,166		0.9
Software	321,377		31.3		294,066		33.2
Specialty Retail	41,921		4.1		48,880		5.5
Textiles, Apparel and Luxury Goods	—		—		2,789		0.3
Total	$	1,027,502	100.0	%	$	886,851	100.0	%


*			Represents an amount less than 0.1%

GBDC 3 Senior Loan Fund LLC:

On October 2, 2017, the Company agreed to co-invest with RGA Reinsurance Company (“RGA”) primarily in senior secured loans through GBDC 3 Senior Loan Fund LLC (“GBDC 3 SLF”), an unconsolidated Delaware LLC. GBDC 3 SLF will be capitalized as transactions are completed and all portfolio and investment decisions in respect of GBDC 3 SLF must be approved by the GBDC 3 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).

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

As of December 31, 2020 and September 30, 2020, the Company had $109,375 of LLC equity interest subscriptions to GBDC 3 SLF, none of which were funded as of each December 31, 2020 and September 30, 2020 as GBDC 3 SLF has not yet commenced operations.

Note 6. 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.

The outstanding forward currency contracts as of December 31, 2020 and September 30, 2020 were as follows:



As of December 31, 2020
Counterparty	Currency to be sold			Currency to be purchased			Settlement Date	Unrealized appreciation ($)		Unrealized depreciation ($)
Macquarie Bank Limited	€	4,606	EUR	$	5,656	USD	12/12/2022	$	—	$	(63)
Macquarie Bank Limited	$	5,654	CAD	$	4,284	USD	12/12/2022	—		(146)
Macquarie Bank Limited	£	1,550	GBP	$	1,933	USD	2/21/2023	—		(193)
Macquarie Bank Limited	£	1,976	GBP	$	2,496	USD	7/17/2023	—		(219)
Macquarie Bank Limited	£	2,985	EUR	$	3,740	USD	6/14/2024	—		(23)
								$	—	$	(644)



As of September 30, 2020
Counterparty	Currency to be sold			Currency to be purchased			Settlement Date	Unrealized appreciation ($)		Unrealized depreciation ($)
Macquarie Bank Limited	€	4,606	EUR	$	5,656	USD	12/12/2022	$	152	$	—
Macquarie Bank Limited	$	5,654	CAD	$	4,284	USD	12/12/2022	43		—
Macquarie Bank Limited	£	1,550	GBP	$	1,933	USD	2/21/2023	—		(77)
Macquarie Bank Limited	£	1,976	GBP	$	2,496	USD	7/17/2023	$	—	$	(70)
								$	195	$	(147)

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 foreign 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 Statements of Financial Condition, and the Company’s gross and

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

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 December 31, 2020 and September 30, 2020.


As of December 31, 2020
Counterparty	Risk exposure category	Unrealized appreciation on forward currency contracts		Unrealized depreciation on forward currency contracts		Net amounts presented in the Consolidated Statement of Financial Condition		Collateral (Received) Pledged (1)		Net Amount (2)
Macquarie Bank Limited	Foreign exchange	$	—	$	(644)	$	(644)	$	450	$	(194)


As of September 30, 2020
Counterparty	Risk exposure category	Unrealized appreciation on forward currency contracts		Unrealized depreciation on forward currency contracts		Net amounts presented in the Consolidated Statement of Financial Condition		Collateral (Received) Pledged (1)		Net Amount (2)
Macquarie Bank Limited	Foreign exchange	$	195	$	(147)	$	48	$	—	$	48

(1)In some instances, the actual collateral pledged may be more than the amount shown due to overcollateralization.

(2)Represents the net amount due from/(to) counterparties in the event of default.

The impact of derivative transactions for the three months ended December 31, 2020 and 2019 on the Consolidated Statements of Operations, including realized and unrealized gains (losses) is summarized in the table below:


Realized gain (loss) on forward currency contracts recognized in income
Risk exposure category	Three Months Ended December 31,

	2020		2019
Foreign exchange	$	—	$	—

Change in unrealized appreciation (depreciation) on forward currency contracts recognized in income
Risk exposure category	Three Months Ended December 31,


	2020		2019
Foreign exchange	$	(692)	$	(299)

The following table is a summary of the average outstanding daily volume for forward currency contracts for the three months ended December 31, 2020 and 2019:






Average U.S. Dollar notional outstanding	Three Months Ended December 31,
	2020		2019
Forward currency contracts	$	14,884	$	11,874

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

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

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 7. 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:

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 for the three months ended December 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.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

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 December 31, 2020 and September 30, 2020, with the exception of money market funds included in cash and cash equivalents and restricted cash and cash equivalents (Level 1 investments) and forward currency contracts (Level 2 investments), were valued using Level 3 inputs of the fair value hierarchy.

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.

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 December 31, 2020 and September 30, 2020:

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)


As of December 31, 2020	Fair Value Measurements Using
Description	Level 1		Level 2		Level 3		Total
Assets, at fair value:
Debt investments(1)	$	—	$	—	$	1,013,519	$	1,013,519
Equity investments(1)	—		—		13,983		13,983
Money market funds(1)(2)	7,407		—		—		7,407

Total assets, at fair value:	$	7,407	$	—	$	1,027,502	$	1,034,909
Liabilities, at fair value:
Forward currency contracts	$	—	$	(644)	$	—	$	(644)
Total liabilities, at fair value:	$	—	$	(644)	$	—	$	(644)


As of September 30, 2020	Fair Value Measurements Using
Description	Level 1		Level 2		Level 3		Total
Assets, at fair value:
Debt investments(1)	$	—	$	—	$	875,642	$	875,642
Equity investments(1)	—		—		11,209		11,209
Money market funds(1)(2)	8,705		—		—		8,705
Forward currency contracts	—		195		—		195
Total assets, at fair value:	$	8,705	$	195	$	886,851	$	895,751
Liabilities, at fair value:
Forward currency contracts	$	—	$	(147)	$	—	$	(147)
Total liabilities, at fair value:	$	—	$	(147)	$	—	$	(147)

(1)Refer to the Consolidated Schedules of Investments for further details.

(2)Included in cash and cash equivalents and restricted cash and cash equivalents on the Consolidated Statements of Financial Condition.

The net change in unrealized appreciation (depreciation) for the three months ended December 31, 2020 and 2019 reported within the net change in unrealized appreciation (depreciation) on investments and foreign currency translation in the Company’s Consolidated Statements of Operations attributable to the Company's Level 3 assets held as of December 31, 2020 and December 31, 2019 was $7,683 and $2,786, respectively.

The following tables present the changes in investments measured at fair value using Level 3 inputs for the three months ended December 31, 2020 and 2019:


	For the three months ended December 31, 2020
	Debt Investments		Equity Investments		Total Investments
Fair value, beginning of period	$	875,642	$	11,209	$	886,851
Net change in unrealized appreciation (depreciation) on investments	5,506		1,223		6,729
Realized gain (loss) on investments	3		286		289
Funding of (proceeds from) revolving loans, net	(483)		—		(483)
Fundings of investments	165,910		1,833		167,743
PIK interest	572		—		572
Proceeds from principal payments and sales of portfolio investments	(34,887)		(568)		(35,455)
Accretion of discounts and amortization of premiums	1,256		—		1,256
Fair value, end of period	$	1,013,519	$	13,983	$	1,027,502

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)


	For the three months ended December 31, 2019
	Debt Investments		Equity Investments		Total Investments
Fair value, beginning of period	$	610,195	$	6,794	$	616,989
Net change in unrealized appreciation (depreciation) on investments	2,463		108		2,571
Realized gain (loss) on investments	—		1		1
Funding of (proceeds from) revolving loans, net	660		—		660
Fundings of investments	196,970		1,196		198,166
PIK interest	247		—		247
Proceeds from principal payments and sales of portfolio investments	(21,640)		(1)		(21,641)
Accretion of discounts and amortization of premiums	700		—		700
Fair value, end of period	$	789,595	$	8,098	$	797,693

The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of December 31, 2020 and September 30, 2020:

Quantitative information about Level 3 Fair Value Measurements

Fair value as of December 31, 2020

Valuation Techniques

Unobservable Input

Range (Weighted Average)(1)

Assets, at fair value:

Senior secured loans

173,338

Market rate approach

Market interest rate

3.7% - 14.0% (5.6%)

Market comparable companies

EBITDA multiples

7.5x - 20.0x (15.2x)

739

Market comparable companies

Broker/ Dealer bids or quotes

N/A

One stop loans(2)

833,133

Market rate approach

Market interest rate

4.8% - 19.8% (7.4%)

Market comparable companies

EBITDA multiples

6.0x - 27.0x (16.2x)

Market comparable companies

Revenue multiples

3.5x - 13.9x (7.6x)

Subordinated debt and second lien loans(3)

6,309

Market rate approach

Market interest rate

6.0% - 12.0% (10.8%)

Market comparable companies

EBITDA multiples

13.0x - 21.0x (19.7x)

Market comparable companies

Revenue multiples

4.0x - 8.8x (4.0x)

Equity(4)

13,983

Market comparable companies

EBITDA multiples

8.0x - 26.0x (15.9x)

Revenue multiples

4.0x - 13.9x (7.9x)

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

(2)The Company valued $655,085 and $178,048 of one stop loans using EBITDA and revenue multiples, respectively. All one stop loans were also valued using the market rate approach.

(3)The Company valued $6,260 and $49 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.

(4)The Company valued $10,289 and $3,694 of equity investments using EBITDA and revenue multiples, respectively.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

Quantitative information about Level 3 Fair Value Measurements

Fair value of September 30, 2020

Valuation Techniques

Unobservable Input

Range (Weighted Average) (1)

Assets, at fair value:

Senior secured loans

174,919

Market rate approach

Market interest rate

3.7% - 17.7% (5.7%)

Market comparable companies

EBITDA multiples

4.4x - 20.0x (15.0x)

716

Market comparable companies

Broker/ Dealer bids or quotes

N/A

One stop loans(2)

695,156

Market rate approach

Market interest rate

1.0% - 15.7% (7.5%)

Market comparable companies

EBITDA multiples

6.0x - 27.0x (15.4x)

Market comparable companies

Revenue multiples

3.5x - 16.2x (7.0x)

Subordinated debt and second lien loans(3)

4,851

Market rate approach

Market interest rate

6.0% - 12.0% (10.9%)

Market comparable companies

EBITDA multiples

11.5x - 21.3x (19.5x)

Market comparable companies

Revenue multiples

4.0x - 8.5x (8.3x)

Equity(4)

11,209

Market comparable companies

EBITDA multiples

7.0x - 24.0x (15.3x)

Revenue multiples

3.5x - 16.2x (8.8x)

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

(2)The Company valued $532,648 and $162,508 of one stop loans using EBITDA and revenue multiples, respectively. All one stop loans were also valued using the market rate approach.

(3)The Company valued $4,805 and $46 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.

(4)The Company valued $8,221 and $2,988 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 applicable implied market rates.

The following are the carrying values and fair values of the Company’s debt as of December 31, 2020 and September 30, 2020.


	As of December 31, 2020				As of September 30, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
Debt	$	515,268	$	515,268	$	380,791	$	380,791

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

Note 8. Borrowings

In accordance with the 1940 Act, with certain limited exceptions, the Company is currently allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 200% after such borrowing. The Company has not sought or obtained any approval necessary to be subject to the reduced asset coverage requirements available to BDCs pursuant to Section 61(a)(2) of the 1940 Act, which permits a BDC to have asset coverage of 150%, or 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 under the 1940 Act. As of December 31, 2020, the Company’s asset coverage for borrowed amounts was 204.2%.

Adviser Revolver: On October 2, 2017, the Company entered into the Adviser Revolver with the Investment Adviser, with a maximum credit limit of $40,000 and expiration date of October 2, 2020. On June 28, 2019, the Company and the Investment Adviser amended the Adviser Revolver to increase the borrowing capacity from $40,000 to $100,000. On August 15, 2019, the Company and the Investment Adviser entered into a second amendment to the Adviser Revolver to increase the borrowing capacity from $100,000 to $125,000. On October 28, 2019, the Company entered into a third amendment to the Adviser Revolver, which decreased the borrowing capacity from $125,000 to $40,000. On October 1, 2020, the Company entered into a fourth amendment to the Adviser Revolver, which extended the maturity date of the Adviser Revolver from October 2, 2020 to September 29, 2023. Other material terms of the Adviser Revolver were unchanged. The Adviser Revolver bears interest at a rate equal to the short-term Applicable Federal Rate (“AFR”). The short-term AFR as of December 31, 2020 was 0.2%. As of December 31, 2020 and September 30, 2020, the Company had no outstanding debt under the Adviser Revolver.

For the three months ended December 31, 2020 and 2019, the Company had borrowings on the Adviser Revolver of $10,200 and $11,000, respectively, and repayments on the Adviser Revolver of $10,200 and $9,500, respectively.

For the three months ended December 31, 2020 and 2019, the stated interest expense, cash paid for interest expense, annualized average stated interest rates and average outstanding balances for the Adviser Revolver were as follows:


	Three months ended December 31,
		2020			2019
Stated interest expense		$	—	*	$	7
Cash paid for interest expense		—		*	259
Annualized average stated interest rate		0.1		%	1.8		%
Average outstanding balance		$	111		$	1,467

* Represents an amount less than $1.

SB Revolver: On February 4, 2019, the Company entered into a revolving credit agreement (as amended, the “SB Revolver”) with Signature Bank (“SB”), as administrative agent and a lender, which allowed the Company to borrow up to $175,000 at any one time outstanding, subject to leverage and borrowing base restrictions, with a stated maturity date of February 4, 2021. On April 8, 2019, the Company entered into an amendment to the SB Revolver with SB which increased the borrowing capacity under the SB Revolver to $225,000 from $175,000. Other material terms of the SB Revolver were unchanged. On May 31, 2019, the Company amended the SB Revolver to permit borrowings in foreign currencies. On February 7, 2020, the Company, together with GBDC 3 Funding II entered into an amendment to the SB Revolver (the “SB Revolver Amendment”). The SB Revolver Amendment amended the SB Revolver to, among other things, increase the borrowing capacity under the SB Revolver to $275,000 from $225,000 and increase the borrowing base against which the Company may borrow through April 7, 2020, after which the borrowing base reverts to the terms applicable to the Company prior to the SB Revolver Amendment. The other material terms of the SB Revolver were unchanged. As of December 31, 2020, the Company could borrow up to $275,000.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

The SB Revolver bears interest at a rate, at the Company’s election, of either the one-, two- or three-month LIBOR plus 1.50% per annum or the prime rate minus 1.40%, as calculated under the SB Revolver. The revolving period under the SB Revolver will continue through February 4, 2021. The SB Revolver is secured by the unfunded commitments of stockholders of the Company, collateral accounts and the proceeds of the foregoing. In addition to the stated interest rate on the SB Revolver, the Company is required to pay a non-usage fee at a rate of 0.15% per annum on the unused portion of the SB Revolver.

As of December 31, 2020 and September 30, 2020, the Company had outstanding debt under the SB Revolver of $275,000 and $230,484, respectively. For the three months ended December 31, 2020 and 2019, the Company had borrowings on the SB Revolver of $60,116 and $31,242, respectively, and repayments on the SB Revolver of $15,600 and $66,403, respectively.

For the three months ended December 31, 2020 and 2019, the stated interest expense, cash paid for interest expense, annualized average interest rates and average outstanding balances for the SB Revolver were as follows:


	Three months ended December 31,
		2020			2019
Stated interest expense		$	1,054		$	1,239
Facility fees		11			31
Amortization of debt issuance costs		247			95
Total interest expense		$	1,312		$	1,365
Cash paid for interest expense		$	1,059		$	1,378
Annualized average stated interest rate		1.7		%	3.4		%
Average outstanding balance		$	246,464		$	144,167

DB Credit Facility: On September 10, 2019 (the “Effective Date”), the Company and GBDC 3 Funding, entered into a loan financing and servicing agreement (the “DB Credit Facility”), with the Company, as equity holder and as servicer, the lenders from time to time parties thereto, 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 Deutsche Bank Trust Company Americas, as collateral agent and as collateral custodian. As of December 31, 2020, the DB Credit Facility allowed GBDC 3 Funding to borrow up to $250,000, subject to leverage and borrowing base restrictions. The period during which GBDC 3 Funding may request drawdowns under the DB Credit Facility (the “Revolving Period”) commenced on the Effective Date and will continue through September 10, 2022 unless there is an earlier termination or event of default. The DB Credit Facility will mature on the earliest of (i) three years from the last day of the Revolving Period, (ii) the date on which the Company ceases to exist or (iii) the occurrence of an event of default.

As of December 31, 2020, the DB Credit Facility bears interest at the applicable base rate plus 2.00% 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 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 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. In addition, a non-usage fee of 0.25% per annum is payable on the undrawn amount under the DB Credit Facility, and, during the Revolving Period, 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. A prepayment fee would be payable in the event of any permanent reduction in commitments of the DB Credit Facility in the amount of 0.50% or 0.25% of the amount of the reduction during the first or second year after the Effective Date, respectively.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

The DB Credit Facility is secured by all of the assets held by GBDC 3 Funding. GBDC 3 Funding 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 Investment Company Act of 1940, as amended.

The Company transfers certain loans and debt securities it has originated or acquired from time to time to GBDC 3 Funding through a purchase and sale agreement and causes GBDC 3 Funding to originate or acquire loans, consistent with the Company's investment objectives.

As of December 31, 2020 and September 30, 2020, the Company had outstanding debt under the DB Credit Facility of $240,268 and $150,307, respectively. For the three months ended December 31, 2020 and 2019, the Company had borrowings on the DB Credit Facility of $89,867 and $140,900, respectively, and repayments on the DB Revolver of $0 and $13,600, respectively.


	Three months ended December 31,
		2020			2019
Stated interest expense		$	938		$	1,679
Facility fees		216			213
Amortization of debt issuance costs		208			110
Total interest expense		$	1,362		$	2,002
Cash paid for interest expense		$	1,063		$	—
Annualized average stated interest rate		2.3		%	4.0		%
Average outstanding balance		$	163,436		$	167,228

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 December 31, 2020 and September 30, 2020, the Company had no short-term borrowings. For the three months ended December 31, 2019, the annualized effective interest rate on short-term borrowings was 5.0% and interest expense was $128. The net change in unrealized appreciation (depreciation) for the three months ended December 31, 2019 reported within the net change in unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies was $(189).

For the three months ended December 31, 2020, the average total debt outstanding (including the debt under the Adviser Revolver, SB Revolver, and DB Credit Facility) was $410,011. For the three months ended December 31, 2019, the average total debt outstanding (including the debt under the Adviser Revolver, SB Revolver, DB Credit Facility and other short-term borrowings) was $323,125.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

A summary of the Company’s maturity requirements for borrowings as of December 31, 2020 is as follows:


	Payments Due by Period
	Total		Less Than 1 Year		1 – 3 Years		3 – 5 Years		More Than 5 Years
SB Revolver	$	275,000	$	275,000	$	—	$	—	$	—
DB Credit Facility	240,268		—		—		240,268		—


Total borrowings	$	515,268	$	275,000	$	—	$	240,268	$	—

Note 9. Commitments and Contingencies

Commitments: As of December 31, 2020, the Company had outstanding commitments to fund investments totaling $75,713, including $11,340 of commitments on undrawn revolvers. As of September 30, 2020, the Company had outstanding commitments to fund investments totaling $92,118, including $9,691 on undrawn revolvers. As described in Note 5, the Company had commitments of up to $109,375 to GBDC 3 SLF as of both December 31, 2020 and September 30, 2020 which could be contributed primarily for the purpose of funding new investments approved by the GBDC 3 SLF investment committee. As of December 31, 2020, GBDC 3 SLF has not yet commenced operations.

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 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 enter into derivative instruments that contain elements of off-balance sheet market and credit risk. Refer to Note 6 for outstanding forward currency contracts as of December 31, 2020 and September 30, 2020. 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 any 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 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.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

Note 10. Financial Highlights

The financial highlights for the Company are as follows:


Per share data:(1)	Three months ended December 31,
	2020			2019
Net asset value at beginning of period	$	14.97		$	15.00
Distributions declared:(2)
From net investment income	(0.42)			(0.34)
From capital gains	0.00			0.00		^

Net investment income	0.29			0.27
Net realized gain (loss) on investment transactions	0.01			0.00		^
Net change in unrealized appreciation (depreciation) on investment transactions(3)	0.16			0.07
Net asset value at end of period	$	15.01		$	15.00
Total return based on net asset value per share(4)	3.10		%	2.24		%
Number of common shares outstanding	35,820,104.376			29,715,740.183


	Three months ended December 31,
Listed below are supplemental data and ratios to the financial highlights:	2020			2019
Ratio of net investment income to average net assets*	7.58		%	7.24		%
Ratio of total expenses to average net assets(5)*	5.36		%	7.13		%
Ratio of management fee waiver to average net assets*	(0.68)		%	(0.67)		%
Ratio of incentive fee waiver to average net assets	(0.03)		%	(0.08)		%

Ratio of net expenses to average net assets (6)*	4.65		%	6.38		%
Ratio of incentive fees to average net assets	0.36		%	0.52		%
Ratio of total expenses (without incentive fees) to average net assets*	5.00		%	6.61		%
Total return based on average net asset value(7)*	12.23		%	9.37		%
Net assets at end of period	$	537,619		$	445,736
Average debt outstanding	$	410,011		$	323,125
Average debt outstanding per share	$	11.45		$	10.87
Portfolio Turnover *	15.05		%	12.24		%
Asset coverage ratio(8)	204.21		%	220.71		%
Asset coverage ratio per unit(9)	$	2,042		$	2,207
Average market value per unit (10):

SB Revolver	N/A			N/A
DB Credit Facility	N/A			N/A
Adviser Revolver	N/A			N/A
Other short-term borrowings	N/A			N/A

* Annualized for periods less than a 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)The per share data for distributions reflect the amount of distributions paid or payable with a record date during the applicable period.

(3)Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on the shares outstanding as of the dividend record date.

(4)Total return based on net asset value per share assumes distributions are reinvested in accordance with the DRIP. Total return does not include sales load.

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

(5)For the three months ended December 31, 2020 and 2019, incentive fee is not annualized in the calculation.

(6)For the three months ended December 31, 2020 and 2019, incentive fee waived is not annualized in the calculation.

(7)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.

(8)In accordance with the 1940 Act, with certain limited exceptions, the Company is currently allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 200% after such borrowing.

(9)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.

(10)Not applicable because such senior securities are not registered for public trading.

Note 11. 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 months ended December 31, 2020 and 2019:


	Three months ended December 31,
		2020		2019

Earnings available to stockholders		$	16,411	$	9,125
Basic and diluted weighted average shares outstanding		35,454,475		25,893,806
Basic and diluted earnings per share		$	0.46	$	0.35

Note 12. Dividends and Distributions

The Company’s dividends and distributions are recorded on the record date. The following table summarizes the Company’s dividend declarations and distributions with a record date during the three months ended December 31, 2020 and 2019:


Date Declared	Record Date	Payment Date	Shares Outstanding	Amount Per Share		Total Dividends Declared
For the three months ended December 31, 2020
11/20/2020	12/15/2020	12/18/2020	35,388,849.466	$	0.42	$	14,864




Total dividends declared for the three months ended December 31, 2020						$	14,864

For the three months ended December 31, 2019
08/06/2019	10/18/2019	12/27/2019	24,795,301.540	$	0.0974	$	2,415
11/22/2019	11/28/2019	12/27/2019	26,881,637.710	0.1310		3,522
11/22/2019	12/20/2019	02/26/2020	29,542,494.081	0.1079		3,188
Total dividends declared for the three months ended December 31, 2019						$	9,125

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

The following table summarizes the Company’s distributions reinvested during the three months ended December 31, 2020 and 2019 :


Payment Date	DRIP Shares Issued	NAV ($) per share		DRIP Shares Value (1)
For the three months ended December 31, 2020
December 18, 2020	431,254.910	$	14.97	$	6,455




	431,254.910			$	6,455


For the three months ended December 31, 2019
November 26, 2019	185,724.541	$	15.00	$	2,786
December 27, 2019	173,246.102	15.00		2,599
	358,970.643			$	5,385

(1) Reflects DRIP shares issued multiplied by the unrounded NAV per share.

Note 13. 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 January 1, 2021, the Company entered into subscription agreements with additional stockholders totaling $2,100 in the aggregate, and also entered into agreements to extend the commitments under certain subscription agreements with existing stockholders to January 1, 2022 totaling $7,116 and had commitment expirations of $2,496.

The Company issued a capital call to stockholders that was due January 22, 2021, which is summarized in the following table:


	Date	Shares Issued	NAV ($) per share		Proceeds
Issuance of Shares	1/22/2021	1,823,493.390	$	15.00	$	27,352

On February 4, 2021, the Company entered into an amendment on the SB Revolver to, among other things, extend the stated maturity to February 4, 2022 and amend the interest rate at which borrowings are made, at the Company's election, to either the one-, two- or three-month LIBOR plus 1.70% or the prime rate minus 1.20%. In addition, the non-usage fee was amended to a rate of 0.25% per annum on the unused portion of the SB Revolver, and the fee payable if the Company requests to extend the maturity date of the SB Revolver was amended to 0.25% of the commitments under the SB Revolver as of the date the Company receives notice of such extension, including the fee payable in connection with the extension contemplated by the amendment executed on February 4, 2021. The fee payable by the Company if the Company exercises its right to request an increase in the maximum commitments under the SB Revolver upon satisfaction of certain conditions was amended to 0.25% of such increased or new commitment, with each of the extension and commitment fees subject to pro-ration in accordance with the terms of the SB Revolver. The other material terms of the SB Revolver were unchanged.

On November 20, 2020 and February 5, 2021, the Board declared distributions to holders of record as set forth in the table below:

TABLE OF CONTENTS

Golub Capital BDC 3, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (unaudited)

(In thousands, except shares and per share data)

Record Date

Payment Date

Amount Per Share

January 28, 2021

March 11, 2021

Amount such that the Company's net asset value as of January 31, 2021 on a pro forma basis after giving effect to the payment of this dividend is $15.00 per share

February 25, 2021

May 25, 2021

Net increase in net assets resulting from operations earned by the Company (if positive) as determined in accordance with GAAP for the period February 1, 2021 through February 28, 2021 per share

March 26, 2021

May 25, 2021

Net increase in net assets resulting from operations earned by the Company (if positive) as determined in accordance with GAAP for the period March 1, 2021 through March 31, 2021 per share

April 29, 2021

July 26, 2021

Net increase in net assets resulting from operations earned by the Company (if positive) as determined in accordance with GAAP for the period April 1, 2021 through April 30, 2021 per share

TABLE OF CONTENTS

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 interim and unaudited consolidated financial statements and related notes thereto appearing elsewhere in this quarterly report on Form 10-Q. In this report, “we,” “us,” “our” and “GBDC 3” refer to Golub Capital BDC 3, 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;

•completion of a public offering of our securities or other liquidity event;

•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, 2020.

TABLE OF CONTENTS

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 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, 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.

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. We were formed in August 2017 and commenced operations on October 2, 2017.

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, 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 $35.0 billion in capital under management as of December 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, which was reapproved by our board of directors in May 2020, 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. 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 $5.0 million to $30.0 million of capital, on average, in the securities of U.S. middle-market companies. We also selectively invest more than $30.0 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.

TABLE OF CONTENTS

As of December 31, 2020 and September 30, 2020, our portfolio at fair value was comprised of the following:


	As of December 31, 2020				As of September 30, 2020
Investment Type	Investments at Fair Value (In thousands)		Percentage of Total Investments		Investments at Fair Value (In thousands)		Percentage of Total Investments
Senior secured	$	174,077	16.9	%	$	175,635	19.8	%
One stop	833,133		81.1		695,156		78.4
Second lien	6,260		0.6		4,805		0.5
Subordinated debt	49		0.0	*	46		0.0	*
Equity	13,983		1.4		11,209		1.3
Total	$	1,027,502	100.0	%	$	886,851	100.0	%

*Represents an amount less than 0.1%

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 or recurring revenue 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 December 31, 2020 and September 30, 2020, one stop loans included $178.0 million and $162.5 million, respectively, of late stage lending loans at fair value.

As of December 31, 2020 and September 30, 2020, we had debt and equity investments in 151 and 147 portfolio companies, respectively. The following table shows the weighted average annualized income yield and weighted average annualized investment income yield of our earning portfolio company investments, which represented 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 net asset value of our stock and assuming distributions were reinvested in accordance with our dividend reinvestment plan, or DRIP, in each case for the three months ended December 31, 2020 and 2019:


	For the three months ended
	December 31, 2020	December 31, 2019
Weighted average income yield(1)*	7.2%	8.0%
Weighted average investment income yield(2)*	7.7%	8.4%
Total return based on average net asset value(3) *	12.2%	9.4%
Total return based on net asset value per share(4)	3.1%	2.2%

* Annualized for periods less than one year.

(1)Represents income from interest and fees, excluding amortization of capitalized fees and discounts 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, divided by the average fair value of earning portfolio company 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.

(4)Total return based on net asset value per share assumes distributions are reinvested in accordance with the DRIP. Total return does not include sales load.

As of December 31, 2020, GBDC 3 has earned an inception-to-date internal rate of return, or IRR, of 8.32% for stockholders taken as a whole. For the three months ended December 31, 2020 and 2019, GBDC 3 earned a fiscal year-to-date IRR of 13.05% and 9.7%, respectively, for stockholders taken as a whole. An individual stockholder’s

TABLE OF CONTENTS

IRR may vary based on the timing of their capital transactions. The IRR is the annualized effective compound rate of return that brings a series of cash flows to the current value of the cash invested. The IRR was computed based on the actual dates of cash inflows (share issuances, including share issuances through the DRIP), outflows (capital distributions), the stockholders' net asset value, or NAV, at the end of the period and distributions declared and payable at the end of the period (residual value of the stockholders’ NAV and distributions payable as of each measurement date).

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 or 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:

•reimbursement to GC Advisors of organizational and offering expenses up to an aggregate amount of $0.7 million;

•calculating our 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;

•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;

•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;

TABLE OF CONTENTS

•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;

•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.

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, healthcare facilities, 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. While several countries, as well as certain states in the United States, lifted or reduced certain travel restrictions, business closures and other quarantine measures, recurring COVID-19 outbreaks have led to the re-introduction of such restrictions in certain states in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. As a result, we are unable to predict the duration of 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.

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 has in the past and may in the future require us to contribute additional capital to such companies in the form of follow on investments. Any restructuring of the capitalization of our portfolio companies required by any business disruption or financial distress 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. In the first half of calendar year 2020 when the COVID-19 pandemic began to the impact the U.S. economy, we proactively and aggressively commenced on a number of actions to support and evaluate our portfolio companies, 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 have led and 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.

TABLE OF CONTENTS

We have experienced a meaningful reversal of some of the unrealized depreciation recognized during the three months ended March 31, 2020 as the U.S. economy began reopening sooner than expected, portfolio companies generally performed better than expected, especially those in COVID-impacted sub-sectors, and private equity sponsors have generally stepped up to support their portfolio companies. Due to the resurgence of COVID-19 in some parts of the country, we remain cautious and concerned about the on-going impacts to the U.S. economy and our portfolio companies from COVID-19, but the positive trends identified above contributed to strong financial results for the three months ended December 31, 2020.

As of December 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 200% after such borrowing. Our revolving credit facilities, described in Note 8 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.

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 December 31, 2020, over 89% of our floating rate loans at fair value 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. 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 beginning 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 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 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 these 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.

Recent Developments

On January 1, 2021, we entered into subscription agreements with additional stockholders totaling $2.1 million in the aggregate. We also entered into commitment extensions to January 1, 2022 totaling $7.1 million with existing stockholders, and had commitment expirations of $2.5 million.

We issued a capital call to stockholders that was due January 22, 2021, which is summarized in the following table:


	Date	Shares Issued	NAV ($) per share		Proceeds (in thousands)
Issuance of Shares	1/22/2021	1,823,493.390	$	15.00	$	27,352

On February 4, 2021, we entered into an amendment on the SB Revolver (as defined in Note 8 of our consolidated financial statements) to, among other things, extend the stated maturity to February 4, 2022 and amend the interest rate at which borrowings are made, at our election, to either the one-, two- or three-month LIBOR plus 1.70% or the prime rate minus 1.20%. In addition, the non-usage fee was amended to a rate of 0.25% per annum on the unused portion of the SB Revolver, and the fee payable if we request to extend the maturity date of the SB Revolver was amended to 0.25% of the commitments under the SB Revolver as of the date we receive notice of such extension,

TABLE OF CONTENTS

including the fee payable in connection with the extension contemplated by the amendment executed on February 4, 2021. The fee payable by us if we exercise our right to request an increase in the maximum commitments under the SB Revolver upon satisfaction of certain conditions was amended to 0.25% of such increased or new commitment, with each of the extension and commitment fees subject to pro-ration in accordance with the terms of the SB Revolver. The other material terms of the SB Revolver were unchanged.

On November 20, 2020 and February 5, 2021, our board of directors declared distributions to holders of record as set forth in the table below:

Record Date

Payment Date

Amount Per Share

January 28, 2021

March 11, 2021

Amount such that our net asset value as of January 31, 2021 on a pro forma basis after giving effect to the payment of this dividend is $15.00 per share

February 25, 2021

May 25, 2021

Net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with generally accepted accounting principles in the United States of America or GAAP, for the period February 1, 2021 through February 28, 2021 per share

March 26, 2021

May 25, 2021

Net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period March 1, 2021 through March 31, 2021 per share

April 29, 2021

July 26, 2021

Net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period April 1, 2021 through April 30, 2021 per share

Consolidated Results of Operations

Consolidated operating results for the three months ended December 31, 2020 and 2019 are as follows:


	Three months ended December 31,
		2020		2019		Variances
	(In thousands)
Interest income		$	16,114	$	13,811	$	2,303
Accretion of discounts and amortization of premiums		1,256		700		556
Dividend income		39		2		37
Fee income		361		49		312
Total investment income		17,770		14,562		3,208
Net expenses		7,601		7,509		92
Net investment income		10,169		7,053		3,116
Net realized gain (loss) on investment transactions		299		(11)		310
Net change in unrealized appreciation (depreciation) on investment transactions		5,943		2,083		3,860
Net increase (decrease) in net assets resulting from operations		$	16,411	$	9,125	$	7,286
Average earning portfolio company investments, at fair value		$	909,042	$	691,197	$	217,845

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. In addition, as we have continued to raise and deploy capital, we have experienced significant growth in total assets, total liabilities and net assets from December 31, 2019 to December 31, 2020. As a result, quarterly comparisons of operating results may not be meaningful.

Investment Income

Investment income increased from the three months ended December 31, 2019 to the three months ended December 31, 2020 by $3.2 million, primarily as a result of an increase in the average earning debt investments balance, which

TABLE OF CONTENTS

is the average balance of accruing loans in our debt investment portfolio for the period of $217.8 million, partially offset by a decrease in LIBOR. As of December 31, 2019, 3-month LIBOR was 1.9% compared to 0.2% as of December 31, 2020.

The annualized income yield by debt security type for the three months ended December 31, 2020 and 2019 was as follows:


	Three months ended December 31,
	2020	2019
Senior secured	5.6%	6.7%
One stop	7.5%	8.2%
Second lien	11.0%	12.2%
Subordinated debt(1)	3.3%	4.3%

(1) Represents two portfolio company investments for each of the three months ended December 31, 2020 and 2019

Income yields on one stop and senior secured loans decreased for the three months ended December 31, 2020 as compared to the three months ended December 31, 2019 primarily due to a decrease in the average LIBOR for the three months ended December 31, 2020 compared to the three months ended December 31, 2019, which was partially offset due to over 89% of our loans at fair value having a weighted average LIBOR floor of 1.01%. As of December 31, 2020, we have four second lien and two 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 months ended December 31, 2020 and 2019:


		Three months ended December 31,
			2020		2019		Variances
	(In thousands)
Interest and facility fee expenses			$	2,219	$	3,297	$	(1,078)
Amortization of debt issuance costs			455		205		250
Base management fee, net of waiver			2,422		1,743		679
Income incentive fee, net of waiver			1,794		1,317		477
Capital gain incentive fee accrued under GAAP, net of waiver			—		408		(408)
Professional fees			307		249		58
Administrative service fee			344		275		69
General and administrative expenses			60		15		45
Net expenses			$	7,601	$	7,509	$	92
Average debt outstanding			$	410,011	$	323,125	$	86,886

Interest Expense

Interest and facility fee expenses decreased by $1.1 million from the three months ended December 31, 2020 to three months ended December 31, 2019 primarily due to a decrease in LIBOR on our floating rate facilities for the three months ended December 31, 2020 from the three months ended December 31, 2019. For more information about our outstanding borrowings for the three months ended December 31, 2020 and 2019, including the terms thereof, see

TABLE OF CONTENTS

Note 8. Borrowings in the notes to our consolidated financial statements and the "Liquidity and Capital Resources" section below.

For the three months ended December 31, 2020 and 2019, the effective annualized average interest rate, which includes amortization of debt financing costs and non-usage facility fees, on our total debt was 2.6% and 4.3%, respectively. The decrease in the effective average interest rate for the three months ended December 31, 2020 compared to the three months ended December 31, 2019 was primarily due to a lower average LIBOR.

Management Fees

The base management fee increased as a result of a sequential increase in average assets from the three months ended December 31, 2019 to the three months ended December 31, 2020.

Incentive Fees

The incentive fee payable under the Investment Advisory Agreement 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 $0.5 million for the three months ended December 31, 2020 compared to the three months ended December 31, 2019 primarily as a result of an increase in our average earning debt investment balances that resulted in an increase in our Pre-Incentive Fee Net Investment Income (as defined in Note 4 to our consolidated financial statements).

We did not record a reversal for the capital gain incentive fee under GAAP, nor did we record an accrual for the capital gain incentive fee under GAAP for the three months ended December 31, 2020. We recorded an accrual for the capital gain incentive fee under GAAP, net of waiver, of $0.4 million for the three months ended December 31, 2019. 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. There was no cumulative capital gain incentive fee accrual calculated in accordance with GAAP at either December 31, 2020 and September 30, 2020 and no Capital Gain Incentive Fee was payable pursuant to the Investment Advisory Agreement for each period. For additional details on unrealized appreciation and depreciation of investments, refer to the “Net Realized and Unrealized Gains and Losses” see section below.

Professional Fees, Administrative Service Fees, and General and Administrative Expenses

In total, professional fees, the administrative service fee, and general and administrative expenses increased by $0.2 million from the three months ended December 31, 2019 to the three months ended December 31, 2020. This increase is associated with increased costs to service a growing portfolio. 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 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 to the Administrator during the three months ended December 31, 2020 and 2019 were $0.2 million and $0.2 million, respectively.

As of December 31, 2020 and September 30, 2020, included in accounts payable and accrued expenses were $0.2 million and $0.2 million, respectively, for accrued expenses paid on behalf of us by the Administrator.

TABLE OF CONTENTS

Net Realized and Unrealized Gains and Losses

The following table summarizes our net realized and unrealized gains (losses) for the three months ended December 31, 2020 and 2019:


		Three months ended December 31,
			2020		2019		Variances
	(In thousands)
Net realized gain (loss) from investments			$	289	$	1	$	288
Net realized gain (loss) from foreign currency transactions			10		(12)		22
Net realized gain (loss) on investment transactions			$	299	$	(11)	$	310
Unrealized appreciation from investments			$	10,395	$	3,799	$	6,596
Unrealized (depreciation) from investments			(3,666)		(1,228)		(2,438)
Unrealized appreciation (depreciation) from forward currency contracts			(692)		(299)		(393)
Unrealized appreciation (depreciation) on foreign currency translation			(94)		(189)		95


Net change in unrealized appreciation (depreciation) on investment transactions			$	5,943	$	2,083	$	3,860

During the three months ended December 31, 2020, we had a net realized gain on investment transactions of $0.3 million primarily due to realized gains on the sales of equity investments. For the three months ended December 31, 2019, we had a net realized loss on investment transactions of less than $0.1 million primarily due to realized losses on foreign currency transactions partially offset by realized gains on the sales of equity investments.

For the three months ended December 31, 2020, we had $10.4 million in unrealized appreciation on 91 portfolio company investments, which was offset by $3.7 million in unrealized depreciation on 69 portfolio company investments. Unrealized appreciation for the three months ended December 31, 2020 primarily resulted from better than expected performance of our portfolio companies and credit market conditions beginning to recover from the COVID-19 pandemic. Unrealized depreciation for the three months ended December 31, 2020 primarily resulted from decreases in the fair value in many 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 December 31, 2019, we had $3.8 million in unrealized appreciation on 54 portfolio company investments, which was partially offset by $1.2 million in unrealized depreciation on 79 portfolio company investments. Unrealized appreciation during the three months ended December 31, 2019 resulted from an increase in fair value primarily due to the rise in market prices of portfolio company investments. Unrealized depreciation primarily resulted from the amortization of discounts and negative credit related adjustments that caused a reduction in fair value of portfolio company investments during the three months ended December 31, 2019.

For the three months ended December 31, 2020, we recognized unrealized depreciation on forward currency contracts of $0.7 million, which was comprised of unfavorable movements in currency rates for five open forward currency contracts. For the three months ended December 31, 2019, we recognized unrealized depreciation of $0.3 million, which was comprised of unfavorable movements in currency rates for three open forward currency contracts. See Note 6 in the notes to the consolidated financial statements for details of open positions on forward currency contracts.

TABLE OF CONTENTS

Liquidity and Capital Resources

For the three months ended December 31, 2020, we experienced a net increase in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies of $2.1 million. During the period we used $122.9 million in operating activities, primarily as a result of fundings of portfolio investments of $167.7 million, partially offset by proceeds from principal payments and sales of portfolio investments of $35.5 million. During the same period, cash provided by financing activities was $125.0 million, primarily driven by borrowings on debt of $160.2 million, that were partially offset by repayments of debt of $25.8 million, debt issuance costs of $1.0 million and distributions paid of $8.4 million.

For the three months ended December 31, 2019, we experienced a net increase in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies of $1.3 million. During the period we used $168.3 million in operating activities, primarily as a result of fundings of portfolio investments of $198.2 million, partially offset by proceeds from principal payments and sales of portfolio investments of $21.6 million. During the same period, cash provided by financing activities was $169.6 million, primarily driven by borrowings on debt of $183.1 million, proceeds from short-term borrowings of $18.8 million and proceeds from the issuance of common shares of $96.9 million that were partially offset by repayments of debt of $89.5 million, repayments on short-term borrowings of $32.7 million and distributions paid of $7.0 million.

As of December 31, 2020 and September 30, 2020, we had cash and cash equivalents of $9.1 million and $11.9 million, respectively. In addition, as of December 31, 2020 and September 30, 2020, we had foreign currencies of $0.1 million and $0.1 million, respectively, restricted cash and cash equivalents of $17.2 million and $12.4 million, respectively, and restricted foreign currencies of $0.2 million and less than $0.1 million, 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 our credit facilities and to fund new investments that meet the guidelines under our credit facilities, as applicable.

As of December 31, 2020 and September 30, 2020, we had investor capital subscriptions totaling $927.1 million and $921.8 million, respectively, of which $507.4 million and $507.4 million, respectively, had been called and contributed, leaving $419.8 million and $414.4 million of uncalled investor capital subscriptions, respectively.

This "Liquidity and Capital Resources" section should be read in conjunction with the "COVID-19 Pandemic" section above.

Revolving Credit Facilities

SB Revolver - As of December 31, 2020 and September 30, 2020, we had $275.0 million and $230.5 million outstanding on the SB Revolver, respectively, under the SB Revolver. As of December 31, 2020 and September 30, 2020, subject to leverage and borrowing base restrictions, we had approximately $0 and $44.5 million of remaining commitments, respectively, and $0 and $44.5 million of availability on the SB Revolver. On February 4, 2021, we entered into an amendment on the SB Revolver to, among other things, extend the stated maturity from February 4, 2021 to February 4, 2022 and increase the interest rate on the facility to one-, two- or three-month LIBOR plus 1.70% or prime rate minus 1.20%. See "Recent Developments" section above.

DB Credit Facility - As of December 31, 2020 and September 30, 2020, the DB Credit Facility (as defined in Note 8 of our consolidated financial statements) allowed GBDC 3 Funding LLC, or GBDC 3 Funding, to borrow up to $250.0 million at any one time outstanding, subject to leverage and borrowing base restrictions. As of December 31, 2020 and September 30, 2020, we had $240.3 million and $150.3 million outstanding under the DB Credit Facility, respectively. As of December 31, 2020 and September 30, 2020, subject to leverage and borrowing base restrictions, we had approximately $9.7 million and $99.7 million of remaining commitments, respectively, and $9.7 million and $99.7 million of availability on the DB Credit Facility, respectively.

Adviser Revolver - As of December 31, 2020 and September 30, 2020, we were permitted to borrow up $40.0 million at any one time outstanding under the Adviser Revolver (as defined in Note 8 of our consolidated financial

TABLE OF CONTENTS

statements). As of December 31, 2020 and September 30, 2020, we had no borrowings outstanding under the adviser revolver.

In accordance with the 1940 Act, with certain limited exceptions, we are currently allowed to borrow amounts such that our asset coverage, as defined in the 1940 Act, is at least 200% after such borrowing. We have not sought or obtained approval to reduce our asset coverage ratio as permitted by and subject to the requirements of Section 61(a)(2) of the 1940 Act and, as a result, remain subject to the 200% asset coverage requirement under Section 61(a)(1) of the 1940 Act. As of December 31, 2020, our asset coverage for borrowed amounts was 204.2%.

As of December 31, 2020, we had outstanding commitments to fund investments totaling $75.7 million, including $11.3 million of commitments on undrawn revolvers. As of September 30, 2020, we had outstanding commitments to fund investments totaling $92.1 million, including $9.7 million of commitments on undrawn 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 as of December 31, 2020 and September 30, 2020, respectively, subject to the terms of each loan’s respective credit agreement. As of December 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 and cash balances that we maintain, availability under our DB Credit Facility and Adviser Revolver, ongoing principal repayments on debt investment assets and uncalled investor capital subscriptions.

Although we expect to fund the growth of our investment portfolio through net proceeds from capital calls on existing and future investor capital subscriptions and through our dividend reinvestment plan as well as 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, we can amend, refinance, or enter into new leverage facilities. In addition to capital not being available, it also could 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.

Portfolio Composition, Investment Activity and Yield

As of December 31, 2020 and September 30, 2020, we had investments in 151 and 147 portfolio companies, respectively, with a total fair value of $1.0 billion and $886.9 million, respectively.

The following table shows the asset mix of our new investment commitments for the three months ended December 31, 2020 and 2019:


		For the three months ended December 31,
	2020	2019
		New Commitments		Percentage of Commitments		New Commitments		Percentage of Commitments
Senior secured		$	14,595	8.3	%	$	31,012	14.2	%
One stop		158,009		90.0		186,397		85.3
Second lien		1,356		0.8		—		—
Subordinated debt		—		—		35		0.0	*
Equity		1,669		0.9		1,196		0.5
Total new investment commitments		$	175,629	100.0	%	$	218,640	100.0	%

* Represents an amount less than 0.1%

For the three months ended December 31, 2020 and 2019, we had approximately $35.5 million and $21.6 million, respectively, in proceeds from principal payments and sales of equity investments in portfolio companies.

TABLE OF CONTENTS

The following table shows the principal, amortized cost and fair value of our portfolio of investments by asset class:


	As of December 31, 2020 (1)						As of September 30, 2020 (2)
	Principal		Amortized Cost		Fair Value		Principal		Amortized Cost		Fair Value
	(In thousands)						(In thousands)
Senior secured:
Performing	$	176,238	$	174,447	$	174,077	$	178,191	$	176,117	$	175,635
Non-accrual(3)	—		—		—		—		—		—
One stop:
Performing	844,357		834,050		833,133		710,463		701,468		695,156
Non-accrual(3)	—		—		—		—		—		—
Second lien:
Performing	6,281		6,193		6,260		4,806		4,734		4,805
Non-accrual(3)	—		—		—		—		—		—
Subordinated debt:
Performing	37		36		49		37		36		46
Non-accrual(3)	—		—		—		—		—		—
Equity	N/A		10,691		13,983		N/A		9,140		11,209
Total	$	1,026,913	$	1,025,417	$	1,027,502	$	893,497	$	891,495	$	886,851

(1)As of December 31, 2020, $79.0 million and $78.3 million of our loans at amortized cost and fair value, respectively, included a feature permitting a portion of interest due on such loan to be PIK interest.

(2)As of September 30, 2020, $74.9 million and $73.1 million of our loans at amortized cost and fair value, respectively, included a feature permitting a portion of interest due on such loan to be PIK interest.

(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.”

As of December 31, 2020 and September 30, 2020, we had no loans on non-accrual status. As of December 31, 2020 and September 30, 2020, the fair value of our debt investments as a percentage of the outstanding principal value was 98.7% and 98.0%, respectively.

The following table shows the weighted average rate, spread over LIBOR of floating rate and fees of investments originated for the three months ended December 31, 2020 and 2019:


	For the three months ended
		December 31, 2020	December 31, 2019
Weighted average rate of new investment fundings		7.1%	7.4%
Weighted average spread over LIBOR of new floating rate investment fundings		6.1%	5.5%
Weighted average fees of new investment fundings		1.6%	1.4%
Weighted average rate of sales and payoffs of portfolio investments		6.6%	7.7%

As of December 31, 2020, 89.6% of our debt portfolio at fair value and at amortized cost had interest rate floors that limit the minimum applicable interest rates on such loans. As of September 30, 2020, 86.6% of our debt portfolio at fair value and at amortized cost had interest rate floors that limit the minimum applicable interest rates on such loans.

As of December 31, 2020 and September 30, 2020, the portfolio median earnings before interest, taxes, depreciation and amortization, or EBITDA, for our portfolio companies was $36.3 million and $34.5 million, respectively. The portfolio median EBITDA is based on the most recently reported trailing twelve-month EBITDA received from the portfolio company.

TABLE OF CONTENTS

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 December 31, 2020 and September 30, 2020:


	As of December 31, 2020				As of September 30, 2020
Internal Performance Rating	Investments at Fair Value (In thousands)		Percentage of Total Investments		Investments at Fair Value (In thousands)		Percentage of Total Investments
5	$	37,842	3.7	%	$	19,794	2.2	%
4	890,442		86.7		758,379		85.5
3	99,094		9.6		108,572		12.2
2	124		0.0	*	106		0.0	*
1	—		—		—		—
Total	$	1,027,502	100.0	%	$	886,851	100.0	%

* Represents an amount less than 0.1%

Distributions

We intend to make periodic distributions to our stockholders as determined by our board of directors. For additional information on distributions, see “Critical Accounting Policies - Income Taxes.”

TABLE OF CONTENTS

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.

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. Each of Mr. Lawrence Golub, our chairman, and Mr. David Golub, our president and 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.

•We have entered into the Adviser Revolver with GC Advisors in order to have the ability to borrow funds on a short-term basis.

•As of December 31, 2020, GCOP LLC, an affiliate of GC Advisors, had an aggregate commitment to us of $23.0 million. As of December 31, 2020, we have issued 580,220.714 shares of our common stock to

TABLE OF CONTENTS

GCOP LLC in exchange for aggregate capital contributions totaling $8.7 million and we have also issued 63,205.768 shares to GCOP LLC through the DRIP.

•As of December 31, 2020, GEMS Fund 4, L.P., a Delaware limited partnership whose general partner is controlled by GC Advisors, had an aggregate commitment to us of $27.5 million. As of December 31, 2020, we have issued 1,834,523.315 shares of our common stock to GEMS Fund 4, L.P. in exchange for aggregate capital contributions totaling $27.5 million.

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, Inc., a publicly-traded business development company (Nasdaq: GBDC) which focuses on investing primarily in one stop and other senior secured loans of U.S. middle-market companies. In addition, our officers and directors serve in similar capacities for Golub Capital BDC, Inc. If GC Advisors and its affiliates determine that an investment is appropriate for us and for other such 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.

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 Maryland.

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.

TABLE OF CONTENTS

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 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 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 months ended December 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.

TABLE OF CONTENTS

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 December 31, 2020 and September 30, 2020, with the exception of money market funds included in cash and cash equivalents and restrictive cash and cash equivalents (Level 1 investments) and forward currency contracts (Level 2 investments), 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.

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.

In connection with each sale of shares of our common stock, we make a determination that we are not selling shares of our common stock at a price below the then-current net asset value per share of common stock at the time at which the sale is made or otherwise in violation of the 1940 Act. GC Advisors will consider the following factors, among others, in making such determination:

•The net asset value of our common stock disclosed in the most recent periodic report filed with the SEC;

•Its assessment of whether any change in the net asset value per share of our common stock has occurred (including through the realization of gains on the sale of portfolio securities) during the period beginning on the date of the most recently disclosed net asset value per share of our common stock and ending two days prior to the date of the sale; and

TABLE OF CONTENTS

•The magnitude of the difference between the sale price of the shares of common stock and management’s assessment of any change in the net asset value per share of our common stock during the period discussed above.

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 earned. 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 investment transactions 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 are paid and, in our management’s judgment, are likely to remain current. As of December 31, 2020 and September 30, 2020, we had no portfolio company investments on non-accrual status.

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 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.

TABLE OF CONTENTS

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 months ended December 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.

TABLE OF CONTENTS

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 floating LIBOR are also generally 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 December 31, 2020 and September 30, 2020, the weighted average LIBOR floor on the loans subject to floating interest rates was 1.01%. In addition, the SB Revolver has a floating interest rate provision based on the one-month, two-month, or three-month LIBOR + 1.50%, the DB Credit Facility has a floating interest rate provision equal to three-month LIBOR + 2.00% and the Adviser Revolver has a floating interest rate provision equal to the short-term Applicable Federal Rate. 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 can earn on any portfolio investments, a decrease 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 December 31, 2020 was to remain constant and that we took no actions to alter our interest rate sensitivity as of such date, the following table shows the annualized impact of hypothetical base rate changes in interest rates.


Change in interest rates	Increase (decrease) in interest income		Increase (decrease) in interest expense		Net increase (decrease) in investment income
	(In thousands)
Down 25 basis points	$	(256)	$	(1,288)	$	1,032
Up 50 basis points	511		2,576		(2,065)
Up 100 basis points	10,039		5,153		4,886
Up 150 basis points	15,060		7,729		7,331
Up 200 basis points	20,211		10,305		9,906

Although we believe that this analysis is indicative of our sensitivity to interest rate changes as of December 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 SB Revolver, DB Credit Facility, the Adviser Revolver 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 could 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.

TABLE OF CONTENTS

Item 4. Controls and Procedures.

As of December 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.

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 and their 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.

There have been no material changes during the three months ended December 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, 2020.

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

Previously disclosed on Form 8-K filings.

Item 3: Defaults Upon Senior Securities.

None.

Item 4: Mine Safety Disclosures.

None.

Item 5: Other Information.

None.

Item 6: Exhibits.

EXHIBIT INDEX



Number						Description

10.1						Fourth Amendment, dated as of February 4, 2021, to Revolving Credit and Security Agreement, entered into by and among Golub Capital BDC 3, Inc. and GBDC 3 Funding II LLC, as borrowers, and Signature Bank, as the administrative agent and a lender (Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 814-01244), filed on February 5, 2021).
31.1						Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*
31.2						Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*
32.1						Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

_________________

* Filed herewith

TABLE OF CONTENTS

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 3, Inc.
		A Maryland Corporation

Date: February 12, 2021	By:	/s/ David B. Golub
		David B. Golub
		President and Chief Executive Officer
		(Principal Executive Officer)

Date: February 12, 2021	By:	/s/ Ross A. Teune
		Ross. A. Teune
		Chief Financial Officer
		(Principal Accounting and Financial Officer)

Golub Capital BDC 3, Inc. - FORM 10-Q - February 12, 2021

Attached files

Golub Capital BDC 3, Inc. Reports