Golub Capital BDC reported improved fiscal third-quarter results, with adjusted net income rebounding to $0.22 per share from a $0.18 loss in the prior quarter. Adjusted net investment income held steady at $0.34 per share, and the board declared a $0.33-per-share distribution fully covered by net investment income. Net asset value per share declined to $14.25, while non-accrual investments rose slightly to 1.9% of fair value, with losses concentrated in a small number of junior debt and equity positions. The company ended the quarter with $2 billion of liquidity and net debt-to-equity leverage of 1.23 times, and management noted that new-deal spreads and terms have improved despite ongoing credit stress and subdued private-equity M&A activity.
Golub Capital BDC IncAdjusted net income rebounded to $0.22 per share from a loss, and distribution is fully covered by net investment income.