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Golub Capital BDC, Inc. (NASDAQ:GBDC), a business development company with a market capitalization of $3.86 billion and an impressive 12.11% dividend yield, has amended its revolving credit facility with GC Advisors LLC, increasing its borrowing capacity from $200 million to $300 million. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.26, indicating robust financial flexibility. The amendment, effective as of Monday, June 13, 2025, also alters the interest rate from the short-term applicable federal rate to the mid-term rate and extends the maturity date to June 13, 2032.
The credit facility, known as the GC Advisors Revolver, is an unsecured revolving credit agreement that was initially established on June 21, 2019. This latest amendment marks a significant expansion of Golub Capital’s financial flexibility. InvestingPro analysis reveals that GBDC has maintained dividend payments for 16 consecutive years, demonstrating consistent financial management. For deeper insights into GBDC’s financial strength and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The revised terms under the Amendment include an increase in the borrowing capacity by $100 million, a change in the interest rate to reflect the mid-term applicable federal rate, and an extension of the maturity date by seven years from the original terms. These changes are expected to provide the Company with enhanced financial resources to support its operations and strategic initiatives.
The material terms of the GC Advisors Revolver, aside from the changes noted, remain unchanged. A detailed copy of the Amendment has been filed with the Securities and Exchange Commission (SEC) as Exhibit 10.1 and can be referenced for a complete understanding of the modifications.
This financial move by Golub Capital BDC, Inc. is reported based on the company’s recent SEC filing and reflects the company’s efforts to strengthen its capital structure and support future growth. With an overall Financial Health Score of "GOOD" according to InvestingPro, and liquid assets exceeding short-term obligations, the company appears well-positioned to execute its growth strategy.
In other recent news, Golub Capital BDC Inc . reported earnings for the first quarter of 2025 that fell short of analyst expectations. The company announced an earnings per share of $0.39, missing the forecasted $0.41, and revenue of $213.89 million, which was below the anticipated $223.29 million. Despite these results, Golub Capital maintained its quarterly distribution of $0.39 per share. Additionally, Golub Capital BDC has amended its equity distribution agreement to expand its "at-the-market" offering program, increasing the maximum amount of shares that may be issued and sold to approximately $288 million from the previous $250 million limit.
The company’s investment strategy remains cautious amid macroeconomic challenges, as highlighted in their recent earnings call. Golub Capital’s CEO, David Golub, emphasized the resilience of their investment strategy and their focus on early detection and intervention in response to potential risks. The company also experienced a slight decrease in its net asset value per share, which fell by $0.09 to $15.04. Furthermore, Golub Capital is monitoring its portfolio for tariff-related risks, which it expects to continue impacting the business development company sector. These developments reflect Golub Capital’s ongoing efforts to navigate a challenging economic environment while maintaining its strategic focus.
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