Golub Capital BDC, Inc.

Hello everyone and welcome to GBDC's earnings call for the fiscal quarter and its June 30th, 2025. Before we begin, I'd like to take a moment to remind our listeners that remarks made during this call may contain forward-looking statements within the Meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in GBDC's SEC filings. For materials we intend to refer to on today's earnings call, please visit the investor resources tab on the home page of our website, which is .gullabcapitalbdc.com and click on the events and presentations link. Our earnings release is also available on our website in the investor resources section. As a reminder, this call is being recorded. With that, I'm pleased to turn the call over to David Gallup, Chief Executive Officer of GBDC.

Hello everybody and thanks for joining us today. I'm joined by Matt Ten, our Chief Operating Officer, and Chris Erickson, our Chief Financial Officer. For those of you who are new to GBDC, our investment strategy is focused on providing first-time, senior-secured loans to healthy, resilient, middle-market companies that are backed by strong, partnership-oriented private equity sponsors. Yesterday, we issued our earnings press release for the quarter ended June 30th and we posted an earnings presentation on our website. We're going to be referring to this presentation over the course of today's call. I'm going to start with headlines and then Matt and Chris are going to go through our operating and financial performance for the quarter in more detail. And finally, I'll wrap up with our outlook for the coming period and we'll take some questions. The headline is that GBDC had another good, boring quarter. Here's a highlight. Adjusted NII per share was 39 cents. This corresponds to an adjusted NII return on equity of 10.4 percent. Adjusted net income per share was 34 cents, and that's an adjusted return on equity of 9.1 percent. This brings the since IPO internal rate return for GBDC shareholders to 9.6 percent over 15 years. Adjusted net income per share included five cents per share of adjusted net realized and unrealized losses, primarily unrealized losses in the small tail of underperforming borrowers that you've heard us speak about previously. Our new investment activity increased from prior quarters, but the overall M&A environment remained muted and we continue to see an encouraging level of resilience across our borrowers with internal performance ratings remaining strong and generally consistent quarter over quarter. With that, I'll pass the call over to Matt then to discuss the quarter in more detail.

Thanks, David. I'm going to start on slide four. GBDC's 39 cents per share of adjusted NII and 34 cents per share of adjusted earnings were driven by four key factors. First, overall credit performance remained solid. Nearly 90 percent of GBDC's investment portfolio at their value remains in our highest performing internal rating categories. The five cents of adjusted net unrealized and realized losses were primarily related to their value markdowns on a small number of underperforming investments, the majority of which were in equity investments in these portfolio companies. Investments on non-accrual status remained very low at 60 basis points of total investment portfolio at their value. This level is well below the BDC peer industry average. Second, earnings were supported by historically high base rates and attractive spreads consistent with recent quarters. GBDC's investment income yield was 10.6 percent, a sequential decline of about 20 basis points primarily driven by one modestly lower base rate mostly related to a modest spread compression during the quarter. Third, a decline in GBDC's borrowing costs largely offset the sequential decline in investment income yield. The refricing of GBDC's syndicated corporate lower, which took effect in mid-May, reduced the pick of borrowing costs during the quarter. And fourth, earnings benefited from lower operating expenses due to GBDC's market and C structure. GBDC's investment portfolio grew modestly quarter over quarter, an increase of four percent to just under nine billion dollars at their value, the increase was the result of five hundred and fifty seven million dollars of new investment commitments in the quarter, four hundred and eleven million of which funded in the quarter, a net of three hundred and six million in repayments. We continue to remain highly selective and conservative in our underwriting, closing on just 3.1 percent of yields reviewed in the quarter at a weighted average LTD of approximately 34 percent. We continue to lean in on existing sponsor relationships and portfolio company and companies for approximately half of our origination volume and delivered an uptake in deal activity with new borrowers. We continue to leverage scale to lead deals acting as the sole or lead lender in 88 percent of our transactions. We focus on the four middle markets which we believe continue to offer better risk adjusted return potential than the large borrow market. The median needed offer our calendar Q2 2025 originations is 79 million dollars. We believe our ability to play across the size spectrum is a particularly valuable differentiator today versus many of our peers that are limited to the large borrow market. Continuing on slide four, let me briefly summarize distributions paid and certain balance sheet changes in the quarter. Total distributions paid in the quarter were 39 cents per share. NAS per share decreased by four cents on a sequential basis to fifteen dollars primarily because of net unrealized losses. Net debt to the quarter. On average throughout the quarter GBDC's net leverage was 1.21 terms well within our targeted range of 0.85 to 1.25 terms. During the quarter we opportunistically repurchased cotton stock on an accretive basis. GBDC's board declared a regular quarterly distribution of 39 cents per share representing an annualized dividend yield of 10.4 percent based on GBDC's NAV per share as of June 30th 2025. I'm going to turn it over to Chris now to take us through our financial results in more detail. Chris?