Golub Capital BDC increases ATM program size

Golub Capital BDC, Inc. (NASDAQ:GBDC), a business development company with a market capitalization of $4.01 billion and a P/E ratio of 12.75, has amended its equity distribution agreement to expand its "at-the-market" (ATM) offering program, according to a recent SEC filing. According to InvestingPro data, the company maintains strong financial health with a current ratio of 3.26, indicating robust liquidity. On Friday, the company entered into a second amendment to increase the maximum amount of shares that may be issued and sold under the ATM Program to approximately $288 million, up from the previous $250 million limit.

The ATM Program, which was established on October 6, 2023, allows GBDC to issue and sell shares of its common stock from time to time through designated placement agents. The second amendment, dated May 16, 2025, retains the material terms of the original agreement with the addition of the increased share issuance capacity. Notably, GBDC has maintained dividend payments for 16 consecutive years, currently offering an attractive dividend yield of 11.71%.

The shares offered and sold after this amendment will be pursuant to a prospectus supplement dated May 16, 2025, which accompanies the base prospectus included in GBDC’s registration statement filed on March 31, 2025.

The filing also included a legality opinion from Dechert LLP regarding the shares to be sold under the Prospectus Supplement. This report does not constitute an offer to sell or the solicitation of an offer to buy any securities, and there will be no sale of these securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of any such state or jurisdiction.

This news comes as part of a regular update to investors and is based on a press release statement. For deeper insights into GBDC’s financial health and performance metrics, InvestingPro subscribers can access comprehensive analysis, including 7 additional ProTips and detailed financial metrics in the Pro Research Report, helping investors make more informed decisions about this dividend-paying business development company.

In other recent news, Golub Capital BDC Inc . reported its financial results for the first quarter of 2025, which did not meet Wall Street expectations. The company announced earnings per share (EPS) of $0.39, falling short of the anticipated $0.41. Revenue also missed projections, coming in at $213.89 million compared to the expected $223.29 million. Despite these misses, Golub Capital maintained a quarterly distribution of $0.39 per share, resulting in a 10.3% annualized dividend yield. The company’s net asset value (NAV) per share decreased by $0.09 to $15.04. Analysts from Wells Fargo (NYSE:WFC) and Raymond (NSE:RYMD) James have not indicated any upgrades or downgrades following these developments. Golub Capital continues to focus on its cautious investment strategy amid challenging macroeconomic conditions. The company has also highlighted its efforts to manage tariff-related risks and maintain its resilience in the face of economic uncertainty.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.