Daily News: June 9, 2014

Golub Completes Securitization, Decreases Revolver

Golub Capital announced that its wholly-owned and consolidated subsidiary, Golub Capital BDC CLO, completed its previously announced $402 million term debt securitization. The notes offered in the CLO are backed by a diversified portfolio of senior secured and second lien loans.

The transaction was executed through a private placement of approximately $191.0 million of Aaa/AAA Class A-1 Notes which bear interest at the three-month London Interbank Offered Rate, or LIBOR, plus 1.75%; $20.0 million of Aaa/AAA Class A-2 Notes which bear interest at the three-month LIBOR plus 1.45% for the first 18 months and the three-month LIBOR plus 1.95% thereafter; and $35.0 million of Aa2/AA Class B Notes which bear interest at the three-month LIBOR plus 2.50%. The Company directly retained all of the Class C Notes and equity interests of the CLO, which totaled approximately $155.8 million.

In connection with the closing of the CLO, Golub Capital BDC Funding entered into an amendment to the documents governing its senior secured revolving credit facility with Wells Fargo Bank, to, among other things, decrease the size of the Credit Facility from $250 million to $150 million.

In connection with the issuance and sale of the notes, the company has made customary representations, warranties and covenants in the purchase agreement. The Notes are the secured obligations of the CLO, and the indenture governing the Notes includes customary covenants and events of default. The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state “blue sky” laws and may not be offered or sold in the United States absent registration under Section 5 of the Securities Act or an applicable exemption from such registration requirements.