Daily News: December 12, 2012

Golub Capital BDC Receives Approval for Second SBIC License


Golub Capital BDC, Inc. announced that its wholly owned subsidiary, GC SBIC V, L.P., has received approval for a license from the United States Small Business Administration (SBA) to operate as a Small Business Investment Company (SBIC). This is the second SBIC license granted to the company through its SBIC subsidiaries.

As an SBIC, GC SBIC V will be subject to a variety of regulations and oversight by the SBA concerning, among other things, the size and nature of the companies in which it may invest as well as the structure of those investments.

The license will allow GC SBIC V to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment by the SBA and customary procedures. Debentures are loans issued by an SBIC which have interest payable semi-annually and a ten-year maturity. The interest rate is fixed at the time of issuance at a market-driven spread over U.S. Treasury Notes with ten-year maturities.

“We are very pleased to have received approval for a second SBIC license within our business development company, particularly given our strong origination volume this quarter,” said Golub Capital BDC, Inc. CEO David Golub. “This should provide us with additional attractive long-term debt capital.”

Golub Capital BDC, Inc. principally invests in senior secured, one stop, mezzanine and second lien loans of middle-market companies that are, in most cases, sponsored by private equity investors.

Golub Capital is a provider of financing solutions for the middle market, including one stop financings (through the firm’s proprietary GOLD and MEGA GOLD facilities), senior, second lien and subordinated debt, preferred stock and co-investment equity.