Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Goldman Sachs BDC, Inc. Reports June 30, 2024 Financial Results and Announces Quarterly Dividend of $0.45 Per Share By: Goldman Sachs BDC, Inc. via Business Wire August 08, 2024 at 16:35 PM EDT Goldman Sachs BDC, Inc. (“GSBD”, the “Company”, “we”, “us”, or “our”) (NYSE: GSBD) today reported financial results for the second quarter ended June 30, 2024 and filed its Form 10-Q with the U.S. Securities and Exchange Commission. QUARTERLY HIGHLIGHTS Net investment income per share for the quarter ended June 30, 2024 was $0.59. Excluding purchase discount amortization per share of $0.02 from the Merger (as defined below), adjusted net investment income per share was $0.57, equating to an annualized net investment income yield on book value of 16.7%.1 Earnings per share for the quarter ended June 30, 2024 was $(0.47). Net asset value ("NAV") per share for the quarter ended June 30, 2024 decreased 6.0% to $13.67 from $14.55 as of March 31, 2024. As of June 30, 2024, the Company’s total investments at fair value and commitments were $3,998.2 million, comprised of investments in 155 portfolio companies across 38 industries. The investment portfolio was comprised of 98.0% senior secured debt, including 96.9% in first lien investments.2 During the quarter, the Company had gross originations of $440.0 million of which $317.0 million were funded. Fundings of previously unfunded commitments for the quarter were $89.6 million and sales and repayments activity totaled $226.5 million, resulting in net funded investment activity of $180.1 million. During the quarter, two portfolio companies were placed on non-accrual status. As of June 30, 2024, investments on non-accrual status amounted to 3.4% and 7.6% of the total investment portfolio at fair value and amortized cost, respectively. The Company’s ending net debt-to-equity ratio was 1.19x as of June 30, 2024 and 1.10x as of March 31, 2024. As of June 30, 2024, 64.4% of the Company’s approximately $1,955.1 million aggregate principal amount of debt outstanding was comprised of unsecured debt and 35.6% was comprised of secured debt. The Company’s Board of Directors declared a regular third quarter 2024 dividend of $0.45 per share payable to shareholders of record as of September 30, 2024.3 On November 15, 2023, the Company entered into an equity distribution agreement, pursuant to which it may issue up to $200 million in aggregate offering price of shares of its common stock through at-the-market offerings. During the three months ended June 30, 2024, the Company issued and sold 4,521,185 shares for net proceeds of approximately $69.2 million, net of underwriting and offering costs of approximately $0.8 million. SELECTED FINANCIAL HIGHLIGHTS (in $ millions, except per share data) As of June 30, 2024 As of March 31, 2024 Investment portfolio, at fair value2 $ 3,518.7 $ 3,440.1 Total debt outstanding4 $ 1,955.1 $ 1,843.8 Net assets $ 1,595.9 $ 1,631.6 Net asset value per share $ 13.67 $ 14.55 Ending net debt to equity 1.19x 1.10x (in $ millions, except per share data) Three Months Ended June 30, 2024 Three Months Ended March 31, 2024 Total investment income $ 108.6 $ 111.5 Net investment income after taxes $ 67.0 $ 60.8 Less: Purchase discount amortization 1.8 1.3 Adjusted net investment income after taxes1 $ 65.2 $ 59.5 Net realized and unrealized gains (losses) $ (121.4 ) $ (18.4 ) Add: Realized/Unrealized depreciation from the purchase discount 1.8 1.3 Adjusted net realized and unrealized gains (losses)1 $ (119.6 ) $ (17.1 ) Net investment income per share (basic and diluted) $ 0.59 $ 0.55 Less: Purchase discount amortization per share 0.02 0.01 Adjusted net investment income per share1 $ 0.57 $ 0.54 Weighted average shares outstanding 114.4 110.1 Regular distribution per share $ 0.45 $ 0.45 Total investment income for the three months ended June 30, 2024 and March 31, 2024 was $108.6 million and $111.5 million, respectively. The decrease in total investment income was primarily due to investments being placed on non-accrual status as a result of underperformance during the quarter. Net expenses before taxes for the three months ended June 30, 2024 and March 31, 2024 were $40.4 million and $49.6 million, respectively. Net expenses decreased by $9.2 million primarily due to a decrease in the incentive fee. INVESTMENT ACTIVITY2 The following table summarizes investment activity for the three months ended June 30, 2024: New Investment Commitments Sales and Repayments Investment Type $ Millions % of Total $ Millions % of Total 1st Lien/Senior Secured Debt $ 434.2 98.7 % $ 226.4 100.0 % 1st Lien/Last-Out Unitranche — — 0.1 — % 10 2nd Lien/Senior Secured Debt 3.1 0.7 — — Preferred Stock — — — — Common Stock 2.7 0.6 — — Total $ 440.0 100.0 % $ 226.5 100.0 % During the three months ended June 30, 2024, new investment commitments were across ten new portfolio companies and fifteen existing portfolio companies. Sales and repayments were primarily driven by the full repayment and restructuring of our investments in six portfolio companies. PORTFOLIO SUMMARY2 As of June 30, 2024, the Company’s investments consisted of the following: Investments at Fair Value Investment Type $ Millions % of Total 1st Lien/Senior Secured Debt $ 3,245.9 92.3 % 1st Lien/Last-Out Unitranche 160.6 4.6 2nd Lien/Senior Secured Debt 40.2 1.1 Unsecured Debt 8.7 0.2 Preferred Stock 38.5 1.1 Common Stock 24.5 0.7 Warrants 0.3 — 10 Total $ 3,518.7 100.0 % The following table presents certain selected information regarding the Company’s investments: As of June 30, 2024 December 31, 2023 Number of portfolio companies 155 144 Percentage of performing debt bearing a floating rate5 99.5 % 99.9 % Percentage of performing debt bearing a fixed rate5 0.5 % 0.1 % Weighted average yield on debt and income producing investments, at amortized cost6 12.3 % 12.6 % Weighted average yield on debt and income producing investments, at fair value6 13.3 % 13.8 % Weighted average leverage (net debt/EBITDA)7 6.1x 6.1x Weighted average interest coverage7 1.5x 1.5x Median EBITDA7 $ 63.11 million $ 53.98 million As of June 30, 2024, investments on non-accrual status represented 3.4% and 7.6% of the total investment portfolio at fair value and amortized cost, respectively. LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2024, the Company had $1,955.1 million aggregate principal amount of debt outstanding, comprised of $695.1 million of outstanding borrowings under its senior secured revolving credit facility (“Revolving Credit Facility”), $360.0 million of unsecured notes due 2025, $500.0 million of unsecured notes due 2026 and $400.0 million of unsecured notes due 2027. The combined weighted average interest rate on debt outstanding was 5.35% for the three months ended June 30, 2024. As of June 30, 2024, the Company had $1,000.2 million of availability under its Revolving Credit Facility and $61.6 million in cash.4,8 The Company’s ending net debt-to-equity leverage ratio was 1.19x for the three months ended June 30, 2024, as compared to 1.10x for the three months ended March 31, 2024. 9 CONFERENCE CALL The Company will host an earnings conference call on Friday, August 9, 2024, at 9:00 am Eastern Time. All interested parties are invited to participate in the conference call by dialing (800) 289-0459; international callers should dial +1 (929) 477-0443; conference ID 427709. All participants are asked to dial in approximately 10-15 minutes prior to the call, and reference “Goldman Sachs BDC, Inc.” when prompted. For a slide presentation that the Company may refer to on the earnings conference call, please visit the Investor Resources section of the Company’s website at www.goldmansachsbdc.com. An archived replay will be available on the Company’s webcast link located on the Investor Resources section of the Company’s website. Please direct any questions regarding the conference call to Goldman Sachs BDC, Inc. Investor Relations, via e-mail, at gsbdc-investor-relations@gs.com. ENDNOTES 1) On October 12, 2020, we completed our merger (the “Merger”) with Goldman Sachs Middle Market Lending Corp. (“MMLC”). The Merger was accounted for as an asset acquisition in accordance with ASC 805-50, Business Combinations — Related Issues. The consideration paid to MMLC’s stockholders was less than the aggregate fair values of the assets acquired and liabilities assumed, which resulted in a purchase discount (the “purchase discount”). The purchase discount was allocated to the cost of MMLC investments acquired by us on a pro-rata basis based on their relative fair values as of the closing date. Immediately following the Merger with MMLC, we marked the investments to their respective fair values and, as a result, the purchase discount allocated to the cost basis of the investments acquired was immediately recognized as unrealized appreciation on our Consolidated Statement of Operations. The purchase discount allocated to the loan investments acquired will amortize over the life of each respective loan through interest income, with a corresponding adjustment recorded as unrealized appreciation on such loan acquired through its ultimate disposition. The purchase discount allocated to equity investments acquired will not amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, we will recognize a realized gain with a corresponding reversal of the unrealized appreciation on disposition of such equity investments acquired. As a supplement to our financial results reported in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we have provided, as detailed below, certain non-GAAP financial measures to our operating results that exclude the aforementioned purchase discount and the ongoing amortization thereof, as determined in accordance with GAAP. The non-GAAP financial measures include i) Adjusted net investment income per share; ii) Adjusted net investment income after taxes; and iii) Adjusted net realized and unrealized gains (losses). We believe that the adjustment to exclude the full effect of the purchase discount is meaningful because it is a measure that we and investors use to assess our financial condition and results of operations. Although these non-GAAP financial measures are intended to enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The aforementioned non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies. 2) The discussion of the investment portfolio excludes the investment, if any, in a money market fund managed by an affiliate of The Goldman Sachs Group, Inc. As of June 30, 2024, the Company did not have an investment in the money market fund. 3) The $0.45 per share dividend is payable on October 28, 2024, to stockholders of record as of September 30, 2024. 4) Total debt outstanding excludes netting of debt issuance costs of $11.5 million and $13.0 million, respectively, as of June 30, 2024 and March 31, 2024. 5) The fixed versus floating composition has been calculated as a percentage of performing debt investments measured on a fair value basis, including income producing preferred stock investments and excludes investments, if any, placed on non-accrual. 6) Computed based on the (a) annual actual interest rate or yield earned plus amortization of fees and discounts on the performing debt and other income producing investments as of the reporting date, divided by (b) the total performing debt and other income producing investments (excluding investments on non-accrual) at amortized cost or fair value, respectively. This calculation excludes exit fees that are receivable upon repayment of the investment. Excludes the purchase discount and amortization related to the Merger. 7) For a particular portfolio company, we calculate the level of contractual indebtedness net of cash (“net debt”) owed by the portfolio company and compare that amount to measures of cash flow available to service the net debt. To calculate net debt, we include debt that is both senior and pari passu to the tranche of debt owned by us but exclude debt that is legally and contractually subordinated in ranking to the debt owned by us. We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by us relative to other senior and junior creditors of a portfolio company. We typically calculate cash flow available for debt service at a portfolio company by taking net income before net interest expense, income tax expense, depreciation and amortization (“EBITDA”) for the trailing twelve month period. Weighted average net debt to EBITDA is weighted based on the fair value of our debt investments and excludes investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. For a particular portfolio company, we also compare that amount of EBITDA to the portfolio company’s contractual interest expense (“interest coverage ratio”). We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual interest obligations of the portfolio company. Weighted average interest coverage is weighted based on the fair value of our performing debt investments and excludes investments where interest coverage may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Median EBITDA is based on our debt investments and excludes investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Portfolio company statistics are derived from the financial statements most recently provided to us of each portfolio company as of the reported end date. Statistics of the portfolio companies have not been independently verified by us and may reflect a normalized or adjusted amount. As of June 30, 2024 and March 31, 2024, investments where net debt to EBITDA may not be the appropriate measure of credit risk represented 27.8% and 39.9%, respectively, of total debt investments at fair value. 8) The Company’s Revolving Credit Facility has debt outstanding denominated in currencies other than U.S. Dollars (“USD”). These balances have been converted to USD using applicable foreign currency exchange rates as of June 30, 2024. As a result, the Revolving Credit Facility’s outstanding borrowings and the available debt amounts may not sum to the total debt commitment amount. 9) The ending net debt-to-equity leverage ratio is calculated by using the total borrowings net of cash divided by equity as of June 30, 2024 and excludes unfunded commitments. 10) Amount rounds to less than 0.1%. Goldman Sachs BDC, Inc. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share amounts) June 30, 2024 (Unaudited) December 31, 2023 Assets Investments, at fair value Non-controlled/non-affiliated investments (cost of $3,673,614 and $3,500,119) $ 3,454,287 $ 3,371,910 Non-controlled affiliated investments (cost of $97,170 and $73,672) 64,455 42,419 Total investments, at fair value (cost of $3,770,784 and $3,573,791) $ 3,518,742 $ 3,414,329 Cash 61,612 52,363 Interest and dividends receivable 33,930 38,534 Deferred financing costs 13,526 14,937 Other assets 1,515 2,656 Total assets $ 3,629,325 $ 3,522,819 Liabilities Debt (net of debt issuance costs of $11,480 and $5,447) $ 1,943,587 $ 1,826,794 Interest and other debt expenses payable 21,777 13,369 Management fees payable 8,865 8,708 Incentive fees payable — 13,041 Distribution payable 52,534 49,304 Unrealized depreciation on foreign currency forward contracts 540 726 Accrued expenses and other liabilities 6,128 9,052 Total liabilities $ 2,033,431 $ 1,920,994 Commitments and contingencies (Note 8) Net assets Preferred stock, par value $0.001 per share (1,000,000 shares authorized, no shares issued and outstanding) $ — $ — Common stock, par value $0.001 per share (200,000,000 shares authorized, 116,744,389 and 109,563,525 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively) 117 110 Paid-in capital in excess of par 1,935,098 1,826,294 Distributable earnings (loss) (339,321 ) (224,579 ) Total net assets $ 1,595,894 $ 1,601,825 Total liabilities and net assets $ 3,629,325 $ 3,522,819 Net asset value per share $ 13.67 $ 14.62 Goldman Sachs BDC, Inc. Consolidated Statements of Operations (in thousands, except share and per share amounts) (Unaudited) For the Three Months Ended For the Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Investment income: From non-controlled/non-affiliated investments: Interest income $ 94,358 $ 101,952 $ 191,268 $ 200,082 Payment-in-kind income 11,845 8,735 24,491 16,452 Other income 776 664 1,633 1,546 From non-controlled affiliated investments: Dividend income 770 138 1,182 245 Interest income 834 532 1,490 1,039 Payment-in-kind income 10 51 65 100 Other income 24 11 31 23 Total investment income $ 108,617 $ 112,083 $ 220,160 $ 219,487 Expenses: Interest and other debt expenses $ 29,103 $ 27,775 $ 56,717 $ 55,039 Incentive fees — 7,837 10,882 30,139 Management fees 8,865 8,970 17,597 17,891 Professional fees 1,206 888 2,316 1,766 Directors’ fees 207 208 414 415 Other general and administrative expenses 1,035 1,026 2,097 2,083 Total expenses $ 40,416 $ 46,704 $ 90,023 $ 107,333 Fee waivers $ — $ — $ — $ (1,986 ) Net expenses $ 40,416 $ 46,704 $ 90,023 $ 105,347 Net investment income before taxes $ 68,201 $ 65,379 $ 130,137 $ 114,140 Income tax expense, including excise tax $ 1,243 $ 877 $ 2,319 $ 1,652 Net investment income after taxes $ 66,958 $ 64,502 $ 127,818 $ 112,488 Net realized and unrealized gains (losses) on investment transactions: Net realized gain (loss) from: Non-controlled/non-affiliated investments $ (30,004 ) $ (2,953 ) $ (47,650 ) $ (39,214 ) Non-controlled affiliated investments (2,673 ) — (2,015 ) — Foreign currency and other transactions 4,258 (5 ) 4,444 195 Net change in unrealized appreciation (depreciation) from: Non-controlled/non-affiliated investments (89,023 ) 5,881 (91,118 ) 24,391 Non-controlled affiliated investments (486 ) 472 (1,462 ) 177 Foreign currency forward contracts 41 (88 ) 186 (129 ) Foreign currency translations and other transactions (3,505 ) (1,975 ) (2,155 ) (3,625 ) Net realized and unrealized gains (losses) $ (121,392 ) $ 1,332 $ (139,770 ) $ (18,205 ) (Provision) benefit for taxes on realized gain/loss on investments $ (160 ) $ — $ (144 ) $ — (Provision) benefit for taxes on unrealized appreciation/depreciation on investments 381 (170 ) $ 335 $ (556 ) Net increase (decrease) in net assets from operations $ (54,213 ) $ 65,664 $ (11,761 ) $ 93,727 Weighted average shares outstanding 114,363,722 109,463,144 112,220,299 107,040,899 Basic and diluted net investment income per share $ 0.59 $ 0.59 $ 1.14 $ 1.05 Basic and diluted earnings (loss) per share $ (0.47 ) $ 0.60 $ (0.10 ) $ 0.88 ABOUT GOLDMAN SACHS BDC, INC. Goldman Sachs BDC, Inc. is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940. GSBD was formed by The Goldman Sachs Group, Inc. (“Goldman Sachs”) to invest primarily in middle-market companies in the United States, and is externally managed by Goldman Sachs Asset Management, L.P., an SEC-registered investment adviser and a wholly-owned subsidiary of Goldman Sachs. GSBD seeks to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien, first lien/last-out unitranche and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments. For more information, visit www.goldmansachsbdc.com. Information on the website is not incorporated by reference into this press release and is provided merely for convenience. FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. These statements represent the Company’s belief regarding future events that, by their nature, are uncertain and outside of the Company’s control. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, the risks, uncertainties and other factors we identify in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in filings we make with the Securities and Exchange Commission, and it is not possible for us to predict or identify all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20240808184512/en/Contacts Goldman Sachs BDC, Inc. Investor Contact: Austin Neri, 212-902-1000 Media Contact: Victoria Zarella, 212-902-5400 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Goldman Sachs BDC, Inc. Reports June 30, 2024 Financial Results and Announces Quarterly Dividend of $0.45 Per Share By: Goldman Sachs BDC, Inc. via Business Wire August 08, 2024 at 16:35 PM EDT Goldman Sachs BDC, Inc. (“GSBD”, the “Company”, “we”, “us”, or “our”) (NYSE: GSBD) today reported financial results for the second quarter ended June 30, 2024 and filed its Form 10-Q with the U.S. Securities and Exchange Commission. QUARTERLY HIGHLIGHTS Net investment income per share for the quarter ended June 30, 2024 was $0.59. Excluding purchase discount amortization per share of $0.02 from the Merger (as defined below), adjusted net investment income per share was $0.57, equating to an annualized net investment income yield on book value of 16.7%.1 Earnings per share for the quarter ended June 30, 2024 was $(0.47). Net asset value ("NAV") per share for the quarter ended June 30, 2024 decreased 6.0% to $13.67 from $14.55 as of March 31, 2024. As of June 30, 2024, the Company’s total investments at fair value and commitments were $3,998.2 million, comprised of investments in 155 portfolio companies across 38 industries. The investment portfolio was comprised of 98.0% senior secured debt, including 96.9% in first lien investments.2 During the quarter, the Company had gross originations of $440.0 million of which $317.0 million were funded. Fundings of previously unfunded commitments for the quarter were $89.6 million and sales and repayments activity totaled $226.5 million, resulting in net funded investment activity of $180.1 million. During the quarter, two portfolio companies were placed on non-accrual status. As of June 30, 2024, investments on non-accrual status amounted to 3.4% and 7.6% of the total investment portfolio at fair value and amortized cost, respectively. The Company’s ending net debt-to-equity ratio was 1.19x as of June 30, 2024 and 1.10x as of March 31, 2024. As of June 30, 2024, 64.4% of the Company’s approximately $1,955.1 million aggregate principal amount of debt outstanding was comprised of unsecured debt and 35.6% was comprised of secured debt. The Company’s Board of Directors declared a regular third quarter 2024 dividend of $0.45 per share payable to shareholders of record as of September 30, 2024.3 On November 15, 2023, the Company entered into an equity distribution agreement, pursuant to which it may issue up to $200 million in aggregate offering price of shares of its common stock through at-the-market offerings. During the three months ended June 30, 2024, the Company issued and sold 4,521,185 shares for net proceeds of approximately $69.2 million, net of underwriting and offering costs of approximately $0.8 million. SELECTED FINANCIAL HIGHLIGHTS (in $ millions, except per share data) As of June 30, 2024 As of March 31, 2024 Investment portfolio, at fair value2 $ 3,518.7 $ 3,440.1 Total debt outstanding4 $ 1,955.1 $ 1,843.8 Net assets $ 1,595.9 $ 1,631.6 Net asset value per share $ 13.67 $ 14.55 Ending net debt to equity 1.19x 1.10x (in $ millions, except per share data) Three Months Ended June 30, 2024 Three Months Ended March 31, 2024 Total investment income $ 108.6 $ 111.5 Net investment income after taxes $ 67.0 $ 60.8 Less: Purchase discount amortization 1.8 1.3 Adjusted net investment income after taxes1 $ 65.2 $ 59.5 Net realized and unrealized gains (losses) $ (121.4 ) $ (18.4 ) Add: Realized/Unrealized depreciation from the purchase discount 1.8 1.3 Adjusted net realized and unrealized gains (losses)1 $ (119.6 ) $ (17.1 ) Net investment income per share (basic and diluted) $ 0.59 $ 0.55 Less: Purchase discount amortization per share 0.02 0.01 Adjusted net investment income per share1 $ 0.57 $ 0.54 Weighted average shares outstanding 114.4 110.1 Regular distribution per share $ 0.45 $ 0.45 Total investment income for the three months ended June 30, 2024 and March 31, 2024 was $108.6 million and $111.5 million, respectively. The decrease in total investment income was primarily due to investments being placed on non-accrual status as a result of underperformance during the quarter. Net expenses before taxes for the three months ended June 30, 2024 and March 31, 2024 were $40.4 million and $49.6 million, respectively. Net expenses decreased by $9.2 million primarily due to a decrease in the incentive fee. INVESTMENT ACTIVITY2 The following table summarizes investment activity for the three months ended June 30, 2024: New Investment Commitments Sales and Repayments Investment Type $ Millions % of Total $ Millions % of Total 1st Lien/Senior Secured Debt $ 434.2 98.7 % $ 226.4 100.0 % 1st Lien/Last-Out Unitranche — — 0.1 — % 10 2nd Lien/Senior Secured Debt 3.1 0.7 — — Preferred Stock — — — — Common Stock 2.7 0.6 — — Total $ 440.0 100.0 % $ 226.5 100.0 % During the three months ended June 30, 2024, new investment commitments were across ten new portfolio companies and fifteen existing portfolio companies. Sales and repayments were primarily driven by the full repayment and restructuring of our investments in six portfolio companies. PORTFOLIO SUMMARY2 As of June 30, 2024, the Company’s investments consisted of the following: Investments at Fair Value Investment Type $ Millions % of Total 1st Lien/Senior Secured Debt $ 3,245.9 92.3 % 1st Lien/Last-Out Unitranche 160.6 4.6 2nd Lien/Senior Secured Debt 40.2 1.1 Unsecured Debt 8.7 0.2 Preferred Stock 38.5 1.1 Common Stock 24.5 0.7 Warrants 0.3 — 10 Total $ 3,518.7 100.0 % The following table presents certain selected information regarding the Company’s investments: As of June 30, 2024 December 31, 2023 Number of portfolio companies 155 144 Percentage of performing debt bearing a floating rate5 99.5 % 99.9 % Percentage of performing debt bearing a fixed rate5 0.5 % 0.1 % Weighted average yield on debt and income producing investments, at amortized cost6 12.3 % 12.6 % Weighted average yield on debt and income producing investments, at fair value6 13.3 % 13.8 % Weighted average leverage (net debt/EBITDA)7 6.1x 6.1x Weighted average interest coverage7 1.5x 1.5x Median EBITDA7 $ 63.11 million $ 53.98 million As of June 30, 2024, investments on non-accrual status represented 3.4% and 7.6% of the total investment portfolio at fair value and amortized cost, respectively. LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2024, the Company had $1,955.1 million aggregate principal amount of debt outstanding, comprised of $695.1 million of outstanding borrowings under its senior secured revolving credit facility (“Revolving Credit Facility”), $360.0 million of unsecured notes due 2025, $500.0 million of unsecured notes due 2026 and $400.0 million of unsecured notes due 2027. The combined weighted average interest rate on debt outstanding was 5.35% for the three months ended June 30, 2024. As of June 30, 2024, the Company had $1,000.2 million of availability under its Revolving Credit Facility and $61.6 million in cash.4,8 The Company’s ending net debt-to-equity leverage ratio was 1.19x for the three months ended June 30, 2024, as compared to 1.10x for the three months ended March 31, 2024. 9 CONFERENCE CALL The Company will host an earnings conference call on Friday, August 9, 2024, at 9:00 am Eastern Time. All interested parties are invited to participate in the conference call by dialing (800) 289-0459; international callers should dial +1 (929) 477-0443; conference ID 427709. All participants are asked to dial in approximately 10-15 minutes prior to the call, and reference “Goldman Sachs BDC, Inc.” when prompted. For a slide presentation that the Company may refer to on the earnings conference call, please visit the Investor Resources section of the Company’s website at www.goldmansachsbdc.com. An archived replay will be available on the Company’s webcast link located on the Investor Resources section of the Company’s website. Please direct any questions regarding the conference call to Goldman Sachs BDC, Inc. Investor Relations, via e-mail, at gsbdc-investor-relations@gs.com. ENDNOTES 1) On October 12, 2020, we completed our merger (the “Merger”) with Goldman Sachs Middle Market Lending Corp. (“MMLC”). The Merger was accounted for as an asset acquisition in accordance with ASC 805-50, Business Combinations — Related Issues. The consideration paid to MMLC’s stockholders was less than the aggregate fair values of the assets acquired and liabilities assumed, which resulted in a purchase discount (the “purchase discount”). The purchase discount was allocated to the cost of MMLC investments acquired by us on a pro-rata basis based on their relative fair values as of the closing date. Immediately following the Merger with MMLC, we marked the investments to their respective fair values and, as a result, the purchase discount allocated to the cost basis of the investments acquired was immediately recognized as unrealized appreciation on our Consolidated Statement of Operations. The purchase discount allocated to the loan investments acquired will amortize over the life of each respective loan through interest income, with a corresponding adjustment recorded as unrealized appreciation on such loan acquired through its ultimate disposition. The purchase discount allocated to equity investments acquired will not amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, we will recognize a realized gain with a corresponding reversal of the unrealized appreciation on disposition of such equity investments acquired. As a supplement to our financial results reported in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we have provided, as detailed below, certain non-GAAP financial measures to our operating results that exclude the aforementioned purchase discount and the ongoing amortization thereof, as determined in accordance with GAAP. The non-GAAP financial measures include i) Adjusted net investment income per share; ii) Adjusted net investment income after taxes; and iii) Adjusted net realized and unrealized gains (losses). We believe that the adjustment to exclude the full effect of the purchase discount is meaningful because it is a measure that we and investors use to assess our financial condition and results of operations. Although these non-GAAP financial measures are intended to enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The aforementioned non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies. 2) The discussion of the investment portfolio excludes the investment, if any, in a money market fund managed by an affiliate of The Goldman Sachs Group, Inc. As of June 30, 2024, the Company did not have an investment in the money market fund. 3) The $0.45 per share dividend is payable on October 28, 2024, to stockholders of record as of September 30, 2024. 4) Total debt outstanding excludes netting of debt issuance costs of $11.5 million and $13.0 million, respectively, as of June 30, 2024 and March 31, 2024. 5) The fixed versus floating composition has been calculated as a percentage of performing debt investments measured on a fair value basis, including income producing preferred stock investments and excludes investments, if any, placed on non-accrual. 6) Computed based on the (a) annual actual interest rate or yield earned plus amortization of fees and discounts on the performing debt and other income producing investments as of the reporting date, divided by (b) the total performing debt and other income producing investments (excluding investments on non-accrual) at amortized cost or fair value, respectively. This calculation excludes exit fees that are receivable upon repayment of the investment. Excludes the purchase discount and amortization related to the Merger. 7) For a particular portfolio company, we calculate the level of contractual indebtedness net of cash (“net debt”) owed by the portfolio company and compare that amount to measures of cash flow available to service the net debt. To calculate net debt, we include debt that is both senior and pari passu to the tranche of debt owned by us but exclude debt that is legally and contractually subordinated in ranking to the debt owned by us. We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by us relative to other senior and junior creditors of a portfolio company. We typically calculate cash flow available for debt service at a portfolio company by taking net income before net interest expense, income tax expense, depreciation and amortization (“EBITDA”) for the trailing twelve month period. Weighted average net debt to EBITDA is weighted based on the fair value of our debt investments and excludes investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. For a particular portfolio company, we also compare that amount of EBITDA to the portfolio company’s contractual interest expense (“interest coverage ratio”). We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual interest obligations of the portfolio company. Weighted average interest coverage is weighted based on the fair value of our performing debt investments and excludes investments where interest coverage may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Median EBITDA is based on our debt investments and excludes investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Portfolio company statistics are derived from the financial statements most recently provided to us of each portfolio company as of the reported end date. Statistics of the portfolio companies have not been independently verified by us and may reflect a normalized or adjusted amount. As of June 30, 2024 and March 31, 2024, investments where net debt to EBITDA may not be the appropriate measure of credit risk represented 27.8% and 39.9%, respectively, of total debt investments at fair value. 8) The Company’s Revolving Credit Facility has debt outstanding denominated in currencies other than U.S. Dollars (“USD”). These balances have been converted to USD using applicable foreign currency exchange rates as of June 30, 2024. As a result, the Revolving Credit Facility’s outstanding borrowings and the available debt amounts may not sum to the total debt commitment amount. 9) The ending net debt-to-equity leverage ratio is calculated by using the total borrowings net of cash divided by equity as of June 30, 2024 and excludes unfunded commitments. 10) Amount rounds to less than 0.1%. Goldman Sachs BDC, Inc. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share amounts) June 30, 2024 (Unaudited) December 31, 2023 Assets Investments, at fair value Non-controlled/non-affiliated investments (cost of $3,673,614 and $3,500,119) $ 3,454,287 $ 3,371,910 Non-controlled affiliated investments (cost of $97,170 and $73,672) 64,455 42,419 Total investments, at fair value (cost of $3,770,784 and $3,573,791) $ 3,518,742 $ 3,414,329 Cash 61,612 52,363 Interest and dividends receivable 33,930 38,534 Deferred financing costs 13,526 14,937 Other assets 1,515 2,656 Total assets $ 3,629,325 $ 3,522,819 Liabilities Debt (net of debt issuance costs of $11,480 and $5,447) $ 1,943,587 $ 1,826,794 Interest and other debt expenses payable 21,777 13,369 Management fees payable 8,865 8,708 Incentive fees payable — 13,041 Distribution payable 52,534 49,304 Unrealized depreciation on foreign currency forward contracts 540 726 Accrued expenses and other liabilities 6,128 9,052 Total liabilities $ 2,033,431 $ 1,920,994 Commitments and contingencies (Note 8) Net assets Preferred stock, par value $0.001 per share (1,000,000 shares authorized, no shares issued and outstanding) $ — $ — Common stock, par value $0.001 per share (200,000,000 shares authorized, 116,744,389 and 109,563,525 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively) 117 110 Paid-in capital in excess of par 1,935,098 1,826,294 Distributable earnings (loss) (339,321 ) (224,579 ) Total net assets $ 1,595,894 $ 1,601,825 Total liabilities and net assets $ 3,629,325 $ 3,522,819 Net asset value per share $ 13.67 $ 14.62 Goldman Sachs BDC, Inc. Consolidated Statements of Operations (in thousands, except share and per share amounts) (Unaudited) For the Three Months Ended For the Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Investment income: From non-controlled/non-affiliated investments: Interest income $ 94,358 $ 101,952 $ 191,268 $ 200,082 Payment-in-kind income 11,845 8,735 24,491 16,452 Other income 776 664 1,633 1,546 From non-controlled affiliated investments: Dividend income 770 138 1,182 245 Interest income 834 532 1,490 1,039 Payment-in-kind income 10 51 65 100 Other income 24 11 31 23 Total investment income $ 108,617 $ 112,083 $ 220,160 $ 219,487 Expenses: Interest and other debt expenses $ 29,103 $ 27,775 $ 56,717 $ 55,039 Incentive fees — 7,837 10,882 30,139 Management fees 8,865 8,970 17,597 17,891 Professional fees 1,206 888 2,316 1,766 Directors’ fees 207 208 414 415 Other general and administrative expenses 1,035 1,026 2,097 2,083 Total expenses $ 40,416 $ 46,704 $ 90,023 $ 107,333 Fee waivers $ — $ — $ — $ (1,986 ) Net expenses $ 40,416 $ 46,704 $ 90,023 $ 105,347 Net investment income before taxes $ 68,201 $ 65,379 $ 130,137 $ 114,140 Income tax expense, including excise tax $ 1,243 $ 877 $ 2,319 $ 1,652 Net investment income after taxes $ 66,958 $ 64,502 $ 127,818 $ 112,488 Net realized and unrealized gains (losses) on investment transactions: Net realized gain (loss) from: Non-controlled/non-affiliated investments $ (30,004 ) $ (2,953 ) $ (47,650 ) $ (39,214 ) Non-controlled affiliated investments (2,673 ) — (2,015 ) — Foreign currency and other transactions 4,258 (5 ) 4,444 195 Net change in unrealized appreciation (depreciation) from: Non-controlled/non-affiliated investments (89,023 ) 5,881 (91,118 ) 24,391 Non-controlled affiliated investments (486 ) 472 (1,462 ) 177 Foreign currency forward contracts 41 (88 ) 186 (129 ) Foreign currency translations and other transactions (3,505 ) (1,975 ) (2,155 ) (3,625 ) Net realized and unrealized gains (losses) $ (121,392 ) $ 1,332 $ (139,770 ) $ (18,205 ) (Provision) benefit for taxes on realized gain/loss on investments $ (160 ) $ — $ (144 ) $ — (Provision) benefit for taxes on unrealized appreciation/depreciation on investments 381 (170 ) $ 335 $ (556 ) Net increase (decrease) in net assets from operations $ (54,213 ) $ 65,664 $ (11,761 ) $ 93,727 Weighted average shares outstanding 114,363,722 109,463,144 112,220,299 107,040,899 Basic and diluted net investment income per share $ 0.59 $ 0.59 $ 1.14 $ 1.05 Basic and diluted earnings (loss) per share $ (0.47 ) $ 0.60 $ (0.10 ) $ 0.88 ABOUT GOLDMAN SACHS BDC, INC. Goldman Sachs BDC, Inc. is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940. GSBD was formed by The Goldman Sachs Group, Inc. (“Goldman Sachs”) to invest primarily in middle-market companies in the United States, and is externally managed by Goldman Sachs Asset Management, L.P., an SEC-registered investment adviser and a wholly-owned subsidiary of Goldman Sachs. GSBD seeks to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien, first lien/last-out unitranche and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments. For more information, visit www.goldmansachsbdc.com. Information on the website is not incorporated by reference into this press release and is provided merely for convenience. FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. These statements represent the Company’s belief regarding future events that, by their nature, are uncertain and outside of the Company’s control. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, the risks, uncertainties and other factors we identify in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in filings we make with the Securities and Exchange Commission, and it is not possible for us to predict or identify all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20240808184512/en/Contacts Goldman Sachs BDC, Inc. Investor Contact: Austin Neri, 212-902-1000 Media Contact: Victoria Zarella, 212-902-5400
Goldman Sachs BDC, Inc. (“GSBD”, the “Company”, “we”, “us”, or “our”) (NYSE: GSBD) today reported financial results for the second quarter ended June 30, 2024 and filed its Form 10-Q with the U.S. Securities and Exchange Commission. QUARTERLY HIGHLIGHTS Net investment income per share for the quarter ended June 30, 2024 was $0.59. Excluding purchase discount amortization per share of $0.02 from the Merger (as defined below), adjusted net investment income per share was $0.57, equating to an annualized net investment income yield on book value of 16.7%.1 Earnings per share for the quarter ended June 30, 2024 was $(0.47). Net asset value ("NAV") per share for the quarter ended June 30, 2024 decreased 6.0% to $13.67 from $14.55 as of March 31, 2024. As of June 30, 2024, the Company’s total investments at fair value and commitments were $3,998.2 million, comprised of investments in 155 portfolio companies across 38 industries. The investment portfolio was comprised of 98.0% senior secured debt, including 96.9% in first lien investments.2 During the quarter, the Company had gross originations of $440.0 million of which $317.0 million were funded. Fundings of previously unfunded commitments for the quarter were $89.6 million and sales and repayments activity totaled $226.5 million, resulting in net funded investment activity of $180.1 million. During the quarter, two portfolio companies were placed on non-accrual status. As of June 30, 2024, investments on non-accrual status amounted to 3.4% and 7.6% of the total investment portfolio at fair value and amortized cost, respectively. The Company’s ending net debt-to-equity ratio was 1.19x as of June 30, 2024 and 1.10x as of March 31, 2024. As of June 30, 2024, 64.4% of the Company’s approximately $1,955.1 million aggregate principal amount of debt outstanding was comprised of unsecured debt and 35.6% was comprised of secured debt. The Company’s Board of Directors declared a regular third quarter 2024 dividend of $0.45 per share payable to shareholders of record as of September 30, 2024.3 On November 15, 2023, the Company entered into an equity distribution agreement, pursuant to which it may issue up to $200 million in aggregate offering price of shares of its common stock through at-the-market offerings. During the three months ended June 30, 2024, the Company issued and sold 4,521,185 shares for net proceeds of approximately $69.2 million, net of underwriting and offering costs of approximately $0.8 million. SELECTED FINANCIAL HIGHLIGHTS (in $ millions, except per share data) As of June 30, 2024 As of March 31, 2024 Investment portfolio, at fair value2 $ 3,518.7 $ 3,440.1 Total debt outstanding4 $ 1,955.1 $ 1,843.8 Net assets $ 1,595.9 $ 1,631.6 Net asset value per share $ 13.67 $ 14.55 Ending net debt to equity 1.19x 1.10x (in $ millions, except per share data) Three Months Ended June 30, 2024 Three Months Ended March 31, 2024 Total investment income $ 108.6 $ 111.5 Net investment income after taxes $ 67.0 $ 60.8 Less: Purchase discount amortization 1.8 1.3 Adjusted net investment income after taxes1 $ 65.2 $ 59.5 Net realized and unrealized gains (losses) $ (121.4 ) $ (18.4 ) Add: Realized/Unrealized depreciation from the purchase discount 1.8 1.3 Adjusted net realized and unrealized gains (losses)1 $ (119.6 ) $ (17.1 ) Net investment income per share (basic and diluted) $ 0.59 $ 0.55 Less: Purchase discount amortization per share 0.02 0.01 Adjusted net investment income per share1 $ 0.57 $ 0.54 Weighted average shares outstanding 114.4 110.1 Regular distribution per share $ 0.45 $ 0.45 Total investment income for the three months ended June 30, 2024 and March 31, 2024 was $108.6 million and $111.5 million, respectively. The decrease in total investment income was primarily due to investments being placed on non-accrual status as a result of underperformance during the quarter. Net expenses before taxes for the three months ended June 30, 2024 and March 31, 2024 were $40.4 million and $49.6 million, respectively. Net expenses decreased by $9.2 million primarily due to a decrease in the incentive fee. INVESTMENT ACTIVITY2 The following table summarizes investment activity for the three months ended June 30, 2024: New Investment Commitments Sales and Repayments Investment Type $ Millions % of Total $ Millions % of Total 1st Lien/Senior Secured Debt $ 434.2 98.7 % $ 226.4 100.0 % 1st Lien/Last-Out Unitranche — — 0.1 — % 10 2nd Lien/Senior Secured Debt 3.1 0.7 — — Preferred Stock — — — — Common Stock 2.7 0.6 — — Total $ 440.0 100.0 % $ 226.5 100.0 % During the three months ended June 30, 2024, new investment commitments were across ten new portfolio companies and fifteen existing portfolio companies. Sales and repayments were primarily driven by the full repayment and restructuring of our investments in six portfolio companies. PORTFOLIO SUMMARY2 As of June 30, 2024, the Company’s investments consisted of the following: Investments at Fair Value Investment Type $ Millions % of Total 1st Lien/Senior Secured Debt $ 3,245.9 92.3 % 1st Lien/Last-Out Unitranche 160.6 4.6 2nd Lien/Senior Secured Debt 40.2 1.1 Unsecured Debt 8.7 0.2 Preferred Stock 38.5 1.1 Common Stock 24.5 0.7 Warrants 0.3 — 10 Total $ 3,518.7 100.0 % The following table presents certain selected information regarding the Company’s investments: As of June 30, 2024 December 31, 2023 Number of portfolio companies 155 144 Percentage of performing debt bearing a floating rate5 99.5 % 99.9 % Percentage of performing debt bearing a fixed rate5 0.5 % 0.1 % Weighted average yield on debt and income producing investments, at amortized cost6 12.3 % 12.6 % Weighted average yield on debt and income producing investments, at fair value6 13.3 % 13.8 % Weighted average leverage (net debt/EBITDA)7 6.1x 6.1x Weighted average interest coverage7 1.5x 1.5x Median EBITDA7 $ 63.11 million $ 53.98 million As of June 30, 2024, investments on non-accrual status represented 3.4% and 7.6% of the total investment portfolio at fair value and amortized cost, respectively. LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2024, the Company had $1,955.1 million aggregate principal amount of debt outstanding, comprised of $695.1 million of outstanding borrowings under its senior secured revolving credit facility (“Revolving Credit Facility”), $360.0 million of unsecured notes due 2025, $500.0 million of unsecured notes due 2026 and $400.0 million of unsecured notes due 2027. The combined weighted average interest rate on debt outstanding was 5.35% for the three months ended June 30, 2024. As of June 30, 2024, the Company had $1,000.2 million of availability under its Revolving Credit Facility and $61.6 million in cash.4,8 The Company’s ending net debt-to-equity leverage ratio was 1.19x for the three months ended June 30, 2024, as compared to 1.10x for the three months ended March 31, 2024. 9 CONFERENCE CALL The Company will host an earnings conference call on Friday, August 9, 2024, at 9:00 am Eastern Time. All interested parties are invited to participate in the conference call by dialing (800) 289-0459; international callers should dial +1 (929) 477-0443; conference ID 427709. All participants are asked to dial in approximately 10-15 minutes prior to the call, and reference “Goldman Sachs BDC, Inc.” when prompted. For a slide presentation that the Company may refer to on the earnings conference call, please visit the Investor Resources section of the Company’s website at www.goldmansachsbdc.com. An archived replay will be available on the Company’s webcast link located on the Investor Resources section of the Company’s website. Please direct any questions regarding the conference call to Goldman Sachs BDC, Inc. Investor Relations, via e-mail, at gsbdc-investor-relations@gs.com. ENDNOTES 1) On October 12, 2020, we completed our merger (the “Merger”) with Goldman Sachs Middle Market Lending Corp. (“MMLC”). The Merger was accounted for as an asset acquisition in accordance with ASC 805-50, Business Combinations — Related Issues. The consideration paid to MMLC’s stockholders was less than the aggregate fair values of the assets acquired and liabilities assumed, which resulted in a purchase discount (the “purchase discount”). The purchase discount was allocated to the cost of MMLC investments acquired by us on a pro-rata basis based on their relative fair values as of the closing date. Immediately following the Merger with MMLC, we marked the investments to their respective fair values and, as a result, the purchase discount allocated to the cost basis of the investments acquired was immediately recognized as unrealized appreciation on our Consolidated Statement of Operations. The purchase discount allocated to the loan investments acquired will amortize over the life of each respective loan through interest income, with a corresponding adjustment recorded as unrealized appreciation on such loan acquired through its ultimate disposition. The purchase discount allocated to equity investments acquired will not amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, we will recognize a realized gain with a corresponding reversal of the unrealized appreciation on disposition of such equity investments acquired. As a supplement to our financial results reported in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we have provided, as detailed below, certain non-GAAP financial measures to our operating results that exclude the aforementioned purchase discount and the ongoing amortization thereof, as determined in accordance with GAAP. The non-GAAP financial measures include i) Adjusted net investment income per share; ii) Adjusted net investment income after taxes; and iii) Adjusted net realized and unrealized gains (losses). We believe that the adjustment to exclude the full effect of the purchase discount is meaningful because it is a measure that we and investors use to assess our financial condition and results of operations. Although these non-GAAP financial measures are intended to enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The aforementioned non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies. 2) The discussion of the investment portfolio excludes the investment, if any, in a money market fund managed by an affiliate of The Goldman Sachs Group, Inc. As of June 30, 2024, the Company did not have an investment in the money market fund. 3) The $0.45 per share dividend is payable on October 28, 2024, to stockholders of record as of September 30, 2024. 4) Total debt outstanding excludes netting of debt issuance costs of $11.5 million and $13.0 million, respectively, as of June 30, 2024 and March 31, 2024. 5) The fixed versus floating composition has been calculated as a percentage of performing debt investments measured on a fair value basis, including income producing preferred stock investments and excludes investments, if any, placed on non-accrual. 6) Computed based on the (a) annual actual interest rate or yield earned plus amortization of fees and discounts on the performing debt and other income producing investments as of the reporting date, divided by (b) the total performing debt and other income producing investments (excluding investments on non-accrual) at amortized cost or fair value, respectively. This calculation excludes exit fees that are receivable upon repayment of the investment. Excludes the purchase discount and amortization related to the Merger. 7) For a particular portfolio company, we calculate the level of contractual indebtedness net of cash (“net debt”) owed by the portfolio company and compare that amount to measures of cash flow available to service the net debt. To calculate net debt, we include debt that is both senior and pari passu to the tranche of debt owned by us but exclude debt that is legally and contractually subordinated in ranking to the debt owned by us. We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by us relative to other senior and junior creditors of a portfolio company. We typically calculate cash flow available for debt service at a portfolio company by taking net income before net interest expense, income tax expense, depreciation and amortization (“EBITDA”) for the trailing twelve month period. Weighted average net debt to EBITDA is weighted based on the fair value of our debt investments and excludes investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. For a particular portfolio company, we also compare that amount of EBITDA to the portfolio company’s contractual interest expense (“interest coverage ratio”). We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual interest obligations of the portfolio company. Weighted average interest coverage is weighted based on the fair value of our performing debt investments and excludes investments where interest coverage may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Median EBITDA is based on our debt investments and excludes investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Portfolio company statistics are derived from the financial statements most recently provided to us of each portfolio company as of the reported end date. Statistics of the portfolio companies have not been independently verified by us and may reflect a normalized or adjusted amount. As of June 30, 2024 and March 31, 2024, investments where net debt to EBITDA may not be the appropriate measure of credit risk represented 27.8% and 39.9%, respectively, of total debt investments at fair value. 8) The Company’s Revolving Credit Facility has debt outstanding denominated in currencies other than U.S. Dollars (“USD”). These balances have been converted to USD using applicable foreign currency exchange rates as of June 30, 2024. As a result, the Revolving Credit Facility’s outstanding borrowings and the available debt amounts may not sum to the total debt commitment amount. 9) The ending net debt-to-equity leverage ratio is calculated by using the total borrowings net of cash divided by equity as of June 30, 2024 and excludes unfunded commitments. 10) Amount rounds to less than 0.1%. Goldman Sachs BDC, Inc. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share amounts) June 30, 2024 (Unaudited) December 31, 2023 Assets Investments, at fair value Non-controlled/non-affiliated investments (cost of $3,673,614 and $3,500,119) $ 3,454,287 $ 3,371,910 Non-controlled affiliated investments (cost of $97,170 and $73,672) 64,455 42,419 Total investments, at fair value (cost of $3,770,784 and $3,573,791) $ 3,518,742 $ 3,414,329 Cash 61,612 52,363 Interest and dividends receivable 33,930 38,534 Deferred financing costs 13,526 14,937 Other assets 1,515 2,656 Total assets $ 3,629,325 $ 3,522,819 Liabilities Debt (net of debt issuance costs of $11,480 and $5,447) $ 1,943,587 $ 1,826,794 Interest and other debt expenses payable 21,777 13,369 Management fees payable 8,865 8,708 Incentive fees payable — 13,041 Distribution payable 52,534 49,304 Unrealized depreciation on foreign currency forward contracts 540 726 Accrued expenses and other liabilities 6,128 9,052 Total liabilities $ 2,033,431 $ 1,920,994 Commitments and contingencies (Note 8) Net assets Preferred stock, par value $0.001 per share (1,000,000 shares authorized, no shares issued and outstanding) $ — $ — Common stock, par value $0.001 per share (200,000,000 shares authorized, 116,744,389 and 109,563,525 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively) 117 110 Paid-in capital in excess of par 1,935,098 1,826,294 Distributable earnings (loss) (339,321 ) (224,579 ) Total net assets $ 1,595,894 $ 1,601,825 Total liabilities and net assets $ 3,629,325 $ 3,522,819 Net asset value per share $ 13.67 $ 14.62 Goldman Sachs BDC, Inc. Consolidated Statements of Operations (in thousands, except share and per share amounts) (Unaudited) For the Three Months Ended For the Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Investment income: From non-controlled/non-affiliated investments: Interest income $ 94,358 $ 101,952 $ 191,268 $ 200,082 Payment-in-kind income 11,845 8,735 24,491 16,452 Other income 776 664 1,633 1,546 From non-controlled affiliated investments: Dividend income 770 138 1,182 245 Interest income 834 532 1,490 1,039 Payment-in-kind income 10 51 65 100 Other income 24 11 31 23 Total investment income $ 108,617 $ 112,083 $ 220,160 $ 219,487 Expenses: Interest and other debt expenses $ 29,103 $ 27,775 $ 56,717 $ 55,039 Incentive fees — 7,837 10,882 30,139 Management fees 8,865 8,970 17,597 17,891 Professional fees 1,206 888 2,316 1,766 Directors’ fees 207 208 414 415 Other general and administrative expenses 1,035 1,026 2,097 2,083 Total expenses $ 40,416 $ 46,704 $ 90,023 $ 107,333 Fee waivers $ — $ — $ — $ (1,986 ) Net expenses $ 40,416 $ 46,704 $ 90,023 $ 105,347 Net investment income before taxes $ 68,201 $ 65,379 $ 130,137 $ 114,140 Income tax expense, including excise tax $ 1,243 $ 877 $ 2,319 $ 1,652 Net investment income after taxes $ 66,958 $ 64,502 $ 127,818 $ 112,488 Net realized and unrealized gains (losses) on investment transactions: Net realized gain (loss) from: Non-controlled/non-affiliated investments $ (30,004 ) $ (2,953 ) $ (47,650 ) $ (39,214 ) Non-controlled affiliated investments (2,673 ) — (2,015 ) — Foreign currency and other transactions 4,258 (5 ) 4,444 195 Net change in unrealized appreciation (depreciation) from: Non-controlled/non-affiliated investments (89,023 ) 5,881 (91,118 ) 24,391 Non-controlled affiliated investments (486 ) 472 (1,462 ) 177 Foreign currency forward contracts 41 (88 ) 186 (129 ) Foreign currency translations and other transactions (3,505 ) (1,975 ) (2,155 ) (3,625 ) Net realized and unrealized gains (losses) $ (121,392 ) $ 1,332 $ (139,770 ) $ (18,205 ) (Provision) benefit for taxes on realized gain/loss on investments $ (160 ) $ — $ (144 ) $ — (Provision) benefit for taxes on unrealized appreciation/depreciation on investments 381 (170 ) $ 335 $ (556 ) Net increase (decrease) in net assets from operations $ (54,213 ) $ 65,664 $ (11,761 ) $ 93,727 Weighted average shares outstanding 114,363,722 109,463,144 112,220,299 107,040,899 Basic and diluted net investment income per share $ 0.59 $ 0.59 $ 1.14 $ 1.05 Basic and diluted earnings (loss) per share $ (0.47 ) $ 0.60 $ (0.10 ) $ 0.88 ABOUT GOLDMAN SACHS BDC, INC. Goldman Sachs BDC, Inc. is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940. GSBD was formed by The Goldman Sachs Group, Inc. (“Goldman Sachs”) to invest primarily in middle-market companies in the United States, and is externally managed by Goldman Sachs Asset Management, L.P., an SEC-registered investment adviser and a wholly-owned subsidiary of Goldman Sachs. GSBD seeks to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien, first lien/last-out unitranche and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments. For more information, visit www.goldmansachsbdc.com. Information on the website is not incorporated by reference into this press release and is provided merely for convenience. FORWARD-LOOKING STATEMENTS This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. These statements represent the Company’s belief regarding future events that, by their nature, are uncertain and outside of the Company’s control. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, the risks, uncertainties and other factors we identify in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in filings we make with the Securities and Exchange Commission, and it is not possible for us to predict or identify all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20240808184512/en/
Goldman Sachs BDC, Inc. Investor Contact: Austin Neri, 212-902-1000 Media Contact: Victoria Zarella, 212-902-5400
