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NEW YORK--(BUSINESS WIRE)--Nov 3, 2022--
Goldman Sachs BDC, Inc. (“GSBD” or the “Company”) (NYSE: GSBD) today reported financial results for the third quarter ended September 30, 2022 and filed its Form 10-Q with the U.S. Securities and Exchange Commission.
QUARTERLY HIGHLIGHTS
SELECTED FINANCIAL HIGHLIGHTS
(in $ millions, except per share data)
As of
September 30, 2022
As of
June 30, 2022
Investment portfolio, at fair value 3
$
3,618.1
$
3,591.9
Total debt outstanding 4
$
2,106.3
$
2,030.2
Net assets
$
1,543.9
$
1,585.7
Net asset value per share
$
15.02
$
15.53
Ending net debt to equity
1.34x
1.25x
(in $ millions, except per share data)
Three Months Ended
September 30, 2022
Three Months Ended
June 30, 2022
Total investment income
$
95.2
$
77.5
Net investment income after taxes
$
61.2
$
49.6
Less: Purchase discount amortization
4.5
3.7
Adjusted net investment income after taxes 1
$
56.7
$
45.9
Net realized and unrealized gains (losses)
$
(68.8
)
$
(31.0
)
Add: Realized/Unrealized depreciation from the purchase discount
4.5
3.7
Adjusted net realized and unrealized gains (losses) 1
$
(64.3
)
$
(27.3
)
Net investment income per share (basic and diluted)
$
0.60
$
0.49
Less: Purchase discount amortization per share
0.04
0.04
Adjusted net investment income per share 1
$
0.56
$
0.45
Weighted average shares outstanding
102.4
102.0
Regular distribution per share
$
0.45
$
0.45
Total investment income for the three months ended September 30, 2022 and June 30, 2022 was $95.2 million and $77.5 million, respectively. The increase in investment income was primarily driven by an increase in interest rates.
Net expenses before taxes for the three months ended September 30, 2022 and June 30, 2022 were $33.2 million and $27.0 million, respectively. Net expenses increased by $6.2 million, primarily as a result of an increase in interest and other debt expenses.
INVESTMENT ACTIVITY 3
Summary of Investment Activity for the three months ended September 30, 2022 was as follows:
New Investment Commitments
Sales and Repayments
Investment Type
$ Millions
% of Total
$ Millions
% of Total
1st Lien/Senior Secured Debt
$
203.2
99.0
%
$
211.8
99.9
%
1st Lien/Last-Out Unitranche
—
—
0.1
0.0
%
2nd Lien/Senior Secured Debt
1.0
0.5
—
—
Unsecured Debt
—
—
—
—
Common Stock
1.1
0.5
—
—
Total
$
205.3
100.0
%
$
211.9
100.0
%
During the three months ended September 30, 2022, new investment commitments were across six new portfolio companies and ten existing portfolio companies. Sales and repayments were primarily driven by the full repayment of investments in two portfolio companies. 3
PORTFOLIO SUMMARY 3
As of September 30, 2022, the Company’s investments consisted of the following:
Investments at Fair Value
Investment Type
$ Millions
% of Total
1st Lien/Senior Secured Debt
$
3,199.6
88.4
%
1st Lien/Last-Out Unitranche
118.1
3.3
2nd Lien/Senior Secured Debt
217.1
6.0
Unsecured Debt
7.7
0.2
Preferred Stock
41.9
1.2
Common Stock
33.2
0.9
Warrants
0.5
—
Total
$
3,618.1
100.0
%
The following table presents certain selected information regarding the Company’s investments:
As of
September 30, 2022
June 30, 2022
Number of portfolio companies
133
129
Percentage of performing debt bearing a floating rate 5
99.6
%
99.4
%
Percentage of performing debt bearing a fixed 5
0.4
%
0.6
%
Weighted average yield on debt and income producing investments, at amortized cost 6
10.4
%
9.0
%
Weighted average yield on debt and income producing investments, at fair value 6
10.9
%
9.3
%
Weighted average leverage (net debt/EBITDA) 7
6.0x
6.0x
Weighted average interest coverage 7
1.8x
2.1x
Median EBITDA 7
$
45.3 million
$
43.9 million
As of September 30, 2022, investments on non-accrual status represented 0.4% and 1.4% of the total investment portfolio at fair value and amortized cost, respectively.
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2022, the Company had $2,106.3 million of total principal amount of debt outstanding, comprised of $1,246.3 million of outstanding borrowings under its senior secured revolving credit facility (“Secured Revolving Credit Facility”), $360.0 million of unsecured notes due 2025, and $500.0 million of unsecured notes due 2026. The combined weighted average interest rate on debt outstanding was 3.19% for the quarter ended September 30, 2022. As of September 30, 2022, the Company had $449.3 million of availability under its Senior Revolving Credit Facility and $32.7 million in cash. 4,8
The Company’s ending net debt to equity leverage ratio was 1.34x for the three months ended September 30, 2022, as compared to 1.25x for the three months ended June 30, 2022. 9
CONFERENCE CALL
The Company will host an earnings conference call on Friday, November 4, 2022 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. The conference call will be webcast simultaneously on the Company’s website. An archived replay of the call will be available on our webcast link located in the Investor Resources section of our website www.goldmansachsbdc.com.
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
Goldman Sachs BDC, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share amounts)
September 30, 2022
(Unaudited)
December 31, 2021
Assets
Investments, at fair value
Non-controlled/non-affiliated investments (cost of $3,664,754 and $3,416,195)
$
3,586,780
$
3,427,249
Non-controlled affiliated investments (cost of $58,267 and $58,221)
31,280
32,819
Controlled affiliated investments (cost of $34,745 and $33,374)
—
18,375
Total investments, at fair value (cost of $3,757,766 and $3,507,790)
$
3,618,060
$
3,478,443
Cash
32,670
33,764
Receivable for investments sold
12,508
89
Unrealized appreciation on foreign currency forward contracts
111
100
Interest and dividends receivable
31,800
23,278
Deferred financing costs
13,513
12,631
Other assets
744
2,686
Total assets
$
3,709,406
$
3,550,991
Liabilities
Debt (net of debt issuance costs of $9,571 and $12,296)
$
2,096,709
$
1,861,426
Interest and other debt expenses payable
6,783
14,936
Management fees payable
9,157
8,370
Incentive fees payable
—
760
Distribution payable
46,250
45,818
Accrued offering costs
340
—
Accrued expenses and other liabilities
6,264
5,281
Total liabilities
$
2,165,503
$
1,936,591
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, 102,778,441 and 101,818,811 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively)
103
102
Paid-in capital in excess of par
1,686,942
1,670,742
Distributable earnings
(141,721
)
(55,023
)
Allocated income tax expense
(1,421
)
(1,421
)
Total net assets
$
1,543,903
$
1,614,400
Total liabilities and net assets
$
3,709,406
$
3,550,991
Net asset value per share
$
15.02
$
15.86
Goldman Sachs BDC, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(Unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30,
2022
September 30,
2021
September 30,
2022
September 30,
2021
Investment income:
From non-controlled/non-affiliated investments:
Interest income
$
88,326
$
90,043
$
231,605
$
246,570
Payment-in-kind
5,154
4,768
14,266
11,179
Other income
1,384
1,101
3,550
2,717
From non-controlled affiliated investments:
Dividend income
133
90
258
916
Interest income
120
119
469
282
Payment-in-kind
101
175
553
478
From controlled affiliated investments:
Payment-in-kind
—
365
259
1,008
Interest income
—
23
16
69
Total investment income
$
95,218
$
96,684
$
250,976
$
263,219
Expenses:
Interest and other debt expenses
$
21,979
$
14,449
$
53,823
$
43,953
Incentive fees
—
9,326
12,023
32,551
Management fees
9,157
7,962
26,933
24,241
Professional fees
814
724
2,559
2,257
Directors’ fees
209
234
616
698
Other general and administrative expenses
1,041
793
3,301
2,691
Total expenses
$
33,200
$
33,488
$
99,255
$
106,391
Fee waivers
$
—
$
(1,441
)
$
(11,724
)
$
(24,192
)
Net expenses
$
33,200
$
32,047
$
87,531
$
82,199
Net investment income before taxes
$
62,018
$
64,637
$
163,445
$
181,020
Income tax expense, including excise tax
$
829
$
305
$
2,494
$
929
Net investment income after taxes
$
61,189
$
64,332
$
160,951
$
180,091
Net realized and unrealized gains (losses) on investment transactions:
Net realized gain (loss) from:
Non-controlled/non-affiliated investments
$
—
$
(1,606
)
$
(5,054
)
$
4,628
Non-controlled affiliated investments
—
35,916
—
35,916
Controlled affiliated investments
—
—
(2,035
)
—
Foreign currency forward contracts
90
(49
)
171
(220
)
Foreign currency and other transactions
(1,565
)
69
(2,413
)
113
Net change in unrealized appreciation (depreciation) from:
Non-controlled/non-affiliated investments
(50,069
)
(21,412
)
(89,028
)
(20,534
)
Non-controlled affiliated investments
(3,529
)
(39,257
)
(1,585
)
(47,279
)
Controlled affiliated investments
(18,685
)
(1,391
)
(19,746
)
(3,566
)
Foreign currency forward contracts
(35
)
122
11
396
Foreign currency translations and other transactions
4,974
1,392
10,051
4,234
Net realized and unrealized gains (losses)
$
(68,819
)
$
(26,216
)
$
(109,628
)
$
(26,312
)
(Provision) benefit for taxes on realized gain/loss on investments
$
—
$
—
$
—
$
(53
)
(Provision) benefit for taxes on unrealized appreciation/depreciation on investments
130
(83
)
12
(253
)
Net increase (decrease) in net assets from operations
$
(7,500
)
$
38,033
$
51,335
$
153,473
Weighted average shares outstanding
102,367,005
101,727,464
102,069,593
101,654,241
Net investment income per share (basic and diluted)
$
0.60
$
0.63
$
1.58
$
1.77
Earnings (loss) per share (basic and diluted)
$
(0.07
)
$
0.37
$
0.50
$
1.51
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, including the impact of COVID-19 on the business, future operating results, access to capital and liquidity of the Company and its portfolio companies. 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/20221103006262/en/
CONTACT: Goldman Sachs BDC, Inc.
Investors: Austin Neri, 917-343-7745
Media: Avery Reed, 212-902-5400
KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE
SOURCE: Goldman Sachs BDC, Inc.
Copyright Business Wire 2022.
PUB: 11/03/2022 04:15 PM/DISC: 11/03/2022 04:17 PM
http://www.businesswire.com/news/home/20221103006262/en