Golub Capital - 10-Q quarterly report FY

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

______________________________________________________________________________________________________

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2019

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number 814-00794

Golub Capital BDC, Inc.

(Exact name of registrant as specified in its charter)



Delaware		27-2326940
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

666 Fifth Avenue, 18th Floor

New York, NY 10103

(Address of principal executive offices)

(212) 750-6060

(Registrant's telephone number, including area code)



Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.001 per share	GBDC	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer þ	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

As of August 7, 2019, the Registrant had 60,715,908 shares of common stock, $0.001 par value, outstanding.



Part I. Financial Information
Item 1.	Financial Statements	3
	Consolidated Statements of Financial Condition as of June 30, 2019 (unaudited) and September 30, 2018	3
	Consolidated Statements of Operations for the three and nine months ended June 30, 2019 (unaudited) and 2018 (unaudited)	4
	Consolidated Statements of Changes in Net Assets for the three and nine months ended June 30, 2019 (unaudited) and 2018 (unaudited)	5
	Consolidated Statements of Cash Flows for the nine months ended June 30, 2019 (unaudited) and 2018 (unaudited)	6
	Consolidated Schedules of Investments as of June 30, 2019 (unaudited) and September 30, 2018	8
	Notes to Consolidated Financial Statements (unaudited)	51
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	86
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	112
Item 4.	Controls and Procedures	113
Part II. Other Information
Item 1.	Legal Proceedings	114
Item 1A.	Risk Factors	114
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	114
Item 3.	Defaults Upon Senior Securities	114
Item 4.	Mine Safety Disclosures	114
Item 5.	Other Information	114
Item 6.	Exhibits	115

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Financial Condition

(In thousands, except share and per share data)



	June 30, 2019		September 30, 2018
	(unaudited)
Assets
Investments, at fair value
Non-controlled/non-affiliate company investments	$	1,842,550	$	1,704,473
Non-controlled affiliate company investments	8,529		7,284
Controlled affiliate company investments	71,742		71,084
Total investments at fair value (amortized cost of $1,919,841 and $1,780,652, respectively)	1,922,821		1,782,841
Cash and cash equivalents	8,158		5,878
Foreign currencies (cost of $124 and $159, respectively)	124		159
Restricted cash and cash equivalents	101,541		39,668
Restricted foreign currencies (cost of $827 and $0, respectively)	831		—
Interest receivable	6,648		6,664
Other assets	1,527		342
Total Assets	$	2,041,650	$	1,835,552
Liabilities
Debt	$	1,047,136	$	845,683
Less unamortized debt issuance costs	4,780		2,934
Debt less unamortized debt issuance costs	1,042,356		842,749
Other short-term borrowings (proceeds of $3,605 and $0, respectively)	3,501		—
Interest payable	9,480		4,135
Management and incentive fees payable	14,563		17,671
Accounts payable and accrued expenses	3,050		2,069
Payable for investments purchased	366		—
Accrued trustee fees	114		74
Total Liabilities	1,073,430		866,698
Commitments and Contingencies (Note 7)
Net Assets
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of June 30, 2019 and September 30, 2018	—		—
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 60,715,908 and 60,165,454 shares issued and outstanding as of June 30, 2019 and September 30, 2018, respectively	61		60
Paid in capital in excess of par	958,681		949,547
Distributable earnings	9,478		19,247
Total Net Assets	968,220		968,854
Total Liabilities and Total Net Assets	$	2,041,650	$	1,835,552
Number of common shares outstanding	60,715,908		60,165,454
Net asset value per common share	$	15.95	$	16.10

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

(In thousands, except share and per share data)



	Three months ended June 30,						Nine months ended June 30,
	2019			2018			2019			2018
Investment income
From non-controlled/non-affiliate company investments:
Interest income	$	41,329		$	35,718		$	121,481		$	103,125
Dividend income	59			10			117			620
Fee income	524			459			1,171			1,655
Total investment income from non-controlled/non-affiliate company investments	41,912			36,187			122,769			105,400
From non-controlled affiliate company investments:
Interest income	193			159			552			475
Total investment income from non-controlled affiliate company investments	193			159			552			475
From controlled affiliate company investments:
Dividend income	—			2,050			—			5,868
Total investment income from controlled affiliate company investments	—			2,050			—			5,868
Total investment income	42,105			38,396			123,321			111,743
Expenses
Interest and other debt financing expenses	10,849			8,556			31,269			24,176
Base management fee	6,675			6,125			19,708			17,984
Incentive fee	3,529			3,573			8,578			9,455
Professional fees	727			705			1,981			2,168
Administrative service fee	681			601			2,043			1,840
General and administrative expenses	238			120			463			365
Total expenses	22,699			19,680			64,042			55,988
Net investment income	19,406			18,716			59,279			55,755
Net gain (loss) on investments and foreign currency
Net realized gain (loss) on investments and foreign currency transactions:
Non-controlled/non-affiliate company investments	(717		)	14,881			(4,517		)	14,744
Foreign currency transactions	17			(42		)	(22		)	(42		)
Net realized gain (loss) on investments and foreign currency transactions	(700		)	14,839			(4,539		)	14,702
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation:
Non-controlled/non-affiliate company investments	1,036			(11,350		)	237			(4,533		)
Non-controlled affiliate company investments	(350		)	4			(629		)	568
Controlled affiliate company investments	—			(575		)	1,183			(511		)
Translation of assets and liabilities in foreign currencies	(192		)	86			(104		)	86
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation	494			(11,835		)	687			(4,390		)
Net gain (loss) on investments and foreign currency	(206		)	3,004			(3,852		)	10,312
Net increase in net assets resulting from operations	$	19,200		$	21,720		$	55,427		$	66,067
Per Common Share Data
Basic and diluted earnings per common share	$	0.32		$	0.36		$	0.92		$	1.11
Dividends and distributions declared per common share	$	0.32		$	0.32		$	1.08		$	1.04
Basic and diluted weighted average common shares outstanding	60,591,639			59,872,113			60,398,353			59,732,945

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Changes in Net Assets (unaudited)

(In thousands, except share data)



	Common Stock			Paid in Capital in Excess of Par		Distributable Earnings ⁽¹⁾			Total Net Assets
	Shares	Par Amount		Paid in Capital in Excess of Par		Distributable Earnings ⁽¹⁾			Total Net Assets
Balance at September 30, 2017	59,577,293	$	60	$	939,307	$	18,579		$	957,946
Net increase in net assets resulting from operations:
Net investment income	—	—		—		55,755			55,755
Net realized gain (loss) on investments and foreign currency transactions	—	—		—		14,702			14,702
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation	—	—		—		(4,390		)	(4,390		)
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan	429,231	—		7,415		—			7,415
Distributions from distributable earnings ⁽¹⁾	—	—		—		(62,106		)	(62,106		)
Total increase (decrease) for the nine months ended June 30, 2018	429,231	—		7,415		3,961			11,376
Balance at June 30, 2018	60,006,524	$	60	$	946,722	$	22,540		$	969,322
Balance at March 31, 2018	59,867,531	$	60	$	944,318	$	19,978		$	964,356
Net increase in net assets resulting from operations:
Net investment income	—	—		—		18,716			18,716
Net realized gain (loss) on investments and foreign currency transactions	—	—		—		14,839			14,839
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation	—	—		—		(11,835		)	(11,835		)
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan	138,993	—		2,404		—			2,404
Distributions from distributable earnings	—	—		—		(19,158		)	(19,158		)
Total increase (decrease) for the three months ended June 30, 2018	138,993	—		2,404		2,562			4,966
Balance at June 30, 2018	60,006,524	$	60	$	946,722	$	22,540		$	969,322
Balance at September 30, 2018	60,165,454	$	60	$	949,547	$	19,247		$	968,854
Net increase in net assets resulting from operations:
Net investment income	—	—		—		59,279			59,279
Net realized gain (loss) on investments and foreign currency transactions	—	—		—		(4,539		)	(4,539		)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation	—	—		—		687			687
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan	550,454	1		9,134		—			9,135
Distributions from distributable earnings	—	—		—		(65,196		)	(65,196		)
Total increase (decrease) for the nine months ended June 30, 2019	550,454	1		9,134		(9,769		)	(634		)
Balance at June 30, 2019	60,715,908	$	61	$	958,681	$	9,478		$	968,220
Balance at March 31, 2019	60,587,403	$	61	$	956,508	$	9,666		$	966,235
Net increase in net assets resulting from operations:
Net investment income	—	—		—		19,406			19,406
Net realized gain (loss) on investments and foreign currency transactions	—	—		—		(700		)	(700		)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation	—	—		—		494			494
Distributions to stockholders:
Stock issued in connection with dividend reinvestment plan	128,505	—		2,173		—			2,173
Distributions from distributable earnings	—	—		—		(19,388		)	(19,388		)
Total increase (decrease) for the three months ended June 30, 2019	128,505	—		2,173		(188		)	1,985
Balance at June 30, 2019	60,715,908	$	61	$	958,681	$	9,478		$	968,220

(1) See Note 2. Significant Accounting Policies and Recent Accounting Updates.

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (unaudited)

(In thousands)



	Nine months ended June 30,
	2019			2018
Cash flows from operating activities
Net increase in net assets resulting from operations	$	55,427		$	66,067
Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities
Amortization of deferred debt issuance costs	1,597			2,242
Accretion of discounts and amortization of premiums	(6,624		)	(7,420		)
Net realized (gain) loss on investments	4,517			(14,744		)
Net realized (gain) loss on other short-term borrowings	(73		)	—
Net realized (gain) loss on foreign currency and other transactions	(21		)	—
Net change in unrealized (appreciation) depreciation on investments	(791		)	4,476
Net change in unrealized (appreciation) depreciation on other short-term borrowings	(104		)	—
Net change in unrealized (appreciation) depreciation on translation of assets and liabilities in foreign currencies	223			(86		)
Proceeds from (fundings of) revolving loans, net	(2,264		)	4,334
Fundings of investments	(456,502		)	(464,209		)
Proceeds from principal payments and sales of portfolio investments	323,495			364,773
PIK interest	(1,811		)	(710		)
Changes in operating assets and liabilities:
Interest receivable	16			(192		)
Other assets	(1,185		)	(58		)
Interest payable	5,345			2,983
Management and incentive fees payable	(3,108		)	3,534
Payable for investments purchased	366			—
Accounts payable and accrued expenses	981			89
Accrued trustee fees	40			(3		)
Net cash (used in) provided by operating activities	(80,476		)	(38,924		)
Cash flows from financing activities
Borrowings on debt	1,200,436			414,800
Repayments of debt	(999,185		)	(319,950		)
Capitalized debt issuance costs	(3,443		)	(1,097		)
Proceeds from other short-term borrowings	29,437			9,511
Repayments on other short-term borrowings	(25,759		)	—
Distributions paid	(56,061		)	(54,691		)
Net cash provided by (used in) financing activities	145,425			48,573
Net change in cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies	64,949			9,649
Cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies, beginning of period	45,705			62,558
Cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies, end of period	$	110,654		$	72,207
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	(24,327	)	$	(18,951	)
Distributions declared during the period	(65,196		)	(62,106		)
Supplemental disclosure of noncash financing activity:
Proceeds from issuance of Class A-1-R, Class A-2-R, and Class B-R 2014 Notes	$	—		$	246,000
Redemptions of Class A-1, Class A-2, and Class B 2014 Notes	—			(246,000		)
Stock issued in connection with dividend reinvestment plan	9,135			7,415

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Statements of Cash Flows (unaudited) - (continued)

(In thousands)

The following table provides a reconciliation of cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies reported within the Consolidated Statements of Financial Condition that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows:



	As of June 30,
	2019		2018
Cash and cash equivalents	$	8,158	$	6,814
Foreign currencies (cost of $685 and $111, respectively)	124		111
Restricted cash and cash equivalents	101,541		65,282
Restricted foreign currencies (cost of $827 and $0, respectively)	831		—
Total cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies shown in the Consolidated Statements of Cash Flows	$	110,654	$	72,207

See Note 2. Significant Accounting Policies and Recent Accounting Updates for a description of cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies.

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Investments
Non-controlled/non-affiliate company investments
Debt investments
Aerospace and Defense
ILC Dover, LP^~	Senior loan	L + 4.75%	^(c)(d)	6.96%	12/2023	$	9,853	$	9,778		1.0	%	$	9,853
NTS Technical Systems^{^*~}	One stop	L + 6.25%	^(a)	8.69%	06/2021	22,377		22,160			2.3		22,377
NTS Technical Systems^~	One stop	L + 6.25%	^(a)	8.69%	06/2021	3,672		3,635			0.4		3,672
NTS Technical Systems⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	06/2021	—		(46		)	—		—
Tresys Technology Holdings, Inc.⁽⁷⁾	One stop	L + 6.75%	^(a)	9.15%	06/2020	3,899		3,844			0.3		3,119
Tresys Technology Holdings, Inc.⁽⁷⁾	One stop	L + 6.75%	^(a)	9.15%	06/2020	659		658			0.1		659
Tronair Parent, Inc.^{^}	Senior loan	L + 4.75%	^(c)	7.57%	09/2023	363		361			0.1		342
Tronair Parent, Inc.	Senior loan	L + 4.50%	^(c)(f)	7.33%	09/2021	80		79			—		76
Whitcraft LLC^{^*}	One stop	L + 5.50%	^(c)	7.83%	04/2023	16,202		16,017			1.7		16,040
Whitcraft LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	04/2023	—		(1		)	—		(1		)
Whitcraft LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	04/2023	—		(8		)	—		(9		)
						57,105		56,477			5.9		56,128
Automobile
Dent Wizard International Corporation^~	Senior loan	L + 4.00%	^(a)	6.40%	04/2022	8,354		8,328			0.9		8,312
Grease Monkey International, LLC^{^*}	Senior loan	L + 5.00%	^(a)	7.40%	11/2022	4,826		4,786			0.5		4,826
Grease Monkey International, LLC^~	Senior loan	L + 5.00%	^(a)	7.40%	11/2022	148		146			—		148
Grease Monkey International, LLC^~	Senior loan	L + 5.00%	^(a)	7.40%	11/2022	104		104			—		104
Grease Monkey International, LLC^~	Senior loan	L + 5.00%	^(a)	7.40%	11/2022	75		75			—		75
Grease Monkey International, LLC	Senior loan	L + 5.00%	^(a)	7.40%	11/2022	55		54			—		55
Grease Monkey International, LLC	Senior loan	L + 5.00%	^(a)	7.40%	11/2022	12		11			—		12
Polk Acquisition Corp.^*	Senior loan	L + 5.25%	^(c)	7.58%	06/2022	126		125			—		124
Power Stop, LLC^~	Senior loan	L + 4.75%	^(c)(f)	7.08%	10/2025	1,349		1,343			0.1		1,349
Quick Quack Car Wash Holdings, LLC^*	One stop	L + 6.50%	^(a)	8.90%	04/2023	8,686		8,602			0.9		8,686
Quick Quack Car Wash Holdings, LLC^*	One stop	L + 6.50%	^(a)	8.90%	04/2023	149		147			—		149
Quick Quack Car Wash Holdings, LLC^*	One stop	L + 6.50%	^(a)	8.90%	04/2023	100		99			—		100
Quick Quack Car Wash Holdings, LLC	One stop	L + 6.50%	^(a)	8.90%	04/2023	50		48			—		50
Quick Quack Car Wash Holdings, LLC	One stop	L + 6.50%	^(a)	8.90%	04/2023	40		40			—		40
						24,074		23,908			2.4		24,030
Beverage, Food and Tobacco
Abita Brewing Co., L.L.C.	One stop	L + 5.75%	^(a)	8.15%	04/2021	6,733		6,684			0.7		6,665
Abita Brewing Co., L.L.C.⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	04/2021	—		—			—		(1		)
C. J. Foods, Inc.^{^*~}	One stop	L + 6.25%	^(c)	8.58%	05/2020	8,518		8,489			0.9		8,518
C. J. Foods, Inc.^{^}	One stop	L + 6.25%	^(c)	8.58%	05/2020	644		644			0.1		644
C. J. Foods, Inc.	One stop	L + 6.25%	^(c)	8.65%	05/2020	560		559			0.1		560
Cafe Rio Holding, Inc.^{^}	One stop	L + 5.50%	^(d)	7.70%	09/2023	10,292		10,159			1.1		10,292
Cafe Rio Holding, Inc.	One stop	L + 5.50%	^(c)	7.70%	09/2023	125		123			—		125
Cafe Rio Holding, Inc.^*	One stop	L + 5.50%	^(c)	7.70%	09/2023	79		78			—		79
Cafe Rio Holding, Inc.	One stop	L + 5.50%	^(d)	7.70%	09/2023	70		69			—		70
Cafe Rio Holding, Inc.	One stop	P + 4.50%	^(f)	10.00%	09/2023	10		8			—		10
Cafe Rio Holding, Inc.	One stop	L + 5.50%		N/A⁽⁶⁾	09/2023	—		—			—		—
Cafe Rio Holding, Inc.⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	09/2023	—		(3		)	—		—
Fintech Midco, LLC^*~	One stop	L + 5.25%	^(a)	7.66%	08/2024	12,897		12,787			1.3		12,897
Fintech Midco, LLC	One stop	L + 5.25%	^(a)	7.66%	08/2024	80		79			—		80
Fintech Midco, LLC⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	08/2024	—		(1		)	—		—
Fintech Midco, LLC⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	08/2024	—		(1		)	—		—

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Beverage, Food and Tobacco - (continued)
Flavor Producers, LLC^~	Senior loan	L + 4.75%	^(c)	7.06%	12/2023	$	2,229	$	2,204		0.2	%	$	2,162
Flavor Producers, LLC	Senior loan	L + 4.75%	^(c)	7.24%	12/2022	6		5			—		4
FWR Holding Corporation^{^}	One stop	L + 5.50%	^(a)	7.90%	08/2023	5,219		5,165			0.5		5,219
FWR Holding Corporation	One stop	L + 5.50%	^(a)	7.90%	08/2023	101		100			—		101
FWR Holding Corporation	One stop	L + 5.50%	^(a)	7.90%	08/2023	64		63			—		64
FWR Holding Corporation	One stop	L + 5.50%	^(a)	7.90%	08/2023	50		50			—		50
FWR Holding Corporation	One stop	L + 5.50%	^(a)	7.90%	08/2023	35		34			—		35
FWR Holding Corporation⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	08/2023	—		(1		)	—		—
Global ID Corporation^*~	One stop	L + 6.50%	^(a)	8.89%	11/2021	5,816		5,771			0.6		5,816
Global ID Corporation	One stop	L + 6.50%	^(a)(c)	8.89%	11/2021	105		104			—		105
Global ID Corporation^*	One stop	L + 6.50%	^(a)	8.89%	11/2021	71		71			—		71
Global ID Corporation	One stop	L + 6.50%		N/A⁽⁶⁾	11/2021	—		—			—		—
Mendocino Farms, LLC	One stop	L + 8.50%	^(a)	3.40% cash/7.50% PIK	06/2023	51		51			—		51
Mendocino Farms, LLC⁽⁵⁾	One stop	L + 1.00%		N/A⁽⁶⁾	06/2023	—		(1		)	—		—
Mid-America Pet Food, L.L.C.^{^*}	One stop	L + 6.00%	^(c)	8.33%	12/2021	10,580		10,513			1.1		10,580
Mid-America Pet Food, L.L.C.	One stop	L + 6.00%		N/A⁽⁶⁾	12/2021	—		—			—		—
NBC Intermediate, LLC^{^}	Senior loan	L + 4.25%	^(a)	6.66%	09/2023	2,024		2,009			0.2		2,004
NBC Intermediate, LLC^*	Senior loan	L + 4.25%	^(a)	6.66%	09/2023	1,020		1,011			0.1		1,010
NBC Intermediate, LLC	Senior loan	L + 4.25%		N/A⁽⁶⁾	09/2023	—		—			—		—
Purfoods, LLC	One stop	L + 5.50%	^(c)	8.02%	05/2021	8,379		8,302			0.9		8,379
Purfoods, LLC	One stop	N/A		7.00% PIK	05/2026	125		125			—		125
Purfoods, LLC	One stop	L + 5.50%	^(c)	7.83%	05/2021	55		54			—		55
Purfoods, LLC	One stop	L + 5.50%	^(c)	7.83%	05/2021	40		40			—		40
Purfoods, LLC^{^}	One stop	L + 5.50%	^(c)	7.83%	05/2021	39		39			—		39
Purfoods, LLC	One stop	L + 5.50%	^(a)	7.90%	05/2021	30		29			—		30
Purfoods, LLC^*	One stop	L + 5.50%	^(c)	7.83%	05/2021	30		30			—		30
Purfoods, LLC^~	One stop	L + 5.50%	^(c)	7.83%	05/2021	30		30			—		30
Purfoods, LLC^~	One stop	L + 5.50%	^(c)	7.83%	05/2021	30		30			—		30
Purfoods, LLC^{^}	One stop	L + 5.50%	^(c)	7.83%	05/2021	24		23			—		24
Purfoods, LLC	One stop	L + 5.50%	^(c)	7.83%	05/2021	15		15			—		15
Purfoods, LLC^{^}	One stop	L + 5.50%	^(c)	7.83%	05/2021	15		15			—		15
Purfoods, LLC^{^}	One stop	L + 5.50%	^(c)	7.83%	05/2021	15		15			—		15
Purfoods, LLC^{^}	One stop	L + 5.50%	^(c)	7.83%	05/2021	14		14			—		14
Purfoods, LLC^{^}	One stop	L + 5.50%	^(c)	7.83%	05/2021	11		11			—		11
Purfoods, LLC^{^}	One stop	L + 5.50%	^(c)	7.83%	05/2021	11		11			—		11
Purfoods, LLC^{^}	One stop	L + 5.50%	^(c)	7.83%	05/2021	10		10			—		10
Rubio's Restaurants, Inc.^{^*}	Senior loan	L + 5.25%	^(c)	7.58%	10/2019	11,086		10,968			1.1		10,864
Rubio's Restaurants, Inc.	Senior loan	L + 4.75%	^(a)(f)	7.38%	10/2019	40		39			—		38
Wood Fired Holding Corp.^*	One stop	L + 5.75%	^(c)	8.35%	12/2023	6,936		6,874			0.7		6,936
Wood Fired Holding Corp.	One stop	L + 5.75%		N/A⁽⁶⁾	12/2023	—		—			—		—
Wood Fired Holding Corp.⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	12/2023	—		(1		)	—		—
						94,314		93,496			9.6		93,922

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Broadcasting and Entertainment
TouchTunes Interactive Networks, Inc.^{^}	Senior loan	L + 4.75%	^(a)	7.15%	05/2021	$	1,436	$	1,434		0.1	%	$	1,436

Building and Real Estate
Brooks Equipment Company, LLC^{^*}	One stop	L + 5.00%	^(c)	7.52%	08/2020	21,096		21,036			2.2		21,096
Brooks Equipment Company, LLC^*	One stop	L + 5.00%	^(c)	7.49%	08/2020	1,580		1,575			0.2		1,580
Brooks Equipment Company, LLC⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	08/2020	—		(4		)	—		—
Jensen Hughes, Inc.	Senior loan	L + 4.25%	^(c)(f)	6.59%	03/2024	497		495			0.1		497
Jensen Hughes, Inc.	Senior loan	L + 4.25%	^(c)	6.58%	03/2024	152		151			—		152
Jensen Hughes, Inc.	Senior loan	L + 4.25%	^(c)(f)	6.58%	03/2024	74		73			—		74
Jensen Hughes, Inc.	Senior loan	L + 4.25%	^(c)(f)	6.59%	03/2024	32		32			—		32
MRI Software LLC^{^}	One stop	L + 5.75%	^(a)	8.16%	06/2023	23,504		23,063			2.4		23,504
MRI Software LLC^{^*~}	One stop	L + 5.75%	^(a)	8.16%	06/2023	13,640		13,530			1.4		13,640
MRI Software LLC^{^}	One stop	L + 5.75%	^(a)	8.16%	06/2023	355		352			0.1		355
MRI Software LLC	One stop	L + 5.75%	^(a)	8.16%	06/2023	333		330			0.1		333
MRI Software LLC^*	One stop	L + 5.75%	^(a)	8.16%	06/2023	293		291			—		293
MRI Software LLC^~	One stop	L + 5.75%	^(a)	8.16%	06/2023	293		290			—		293
MRI Software LLC^*	One stop	L + 5.75%	^(a)	8.16%	06/2023	193		191			—		193
MRI Software LLC^{^}	One stop	L + 5.75%	^(a)	8.16%	06/2023	164		162			—		164
MRI Software LLC^~	One stop	L + 5.75%	^(a)	8.16%	06/2023	105		104			—		105
MRI Software LLC^~	One stop	L + 5.75%	^(a)	8.16%	06/2023	97		96			—		97
MRI Software LLC	One stop	L + 5.75%	^(a)	8.16%	06/2023	61		58			—		61
MRI Software LLC	One stop	L + 5.75%	^(a)(c)	8.16%	06/2023	53		51			—		53
MRI Software LLC⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	06/2023	—		(2		)	—		—
						62,522		61,874			6.5		62,522
Chemicals, Plastics and Rubber
Flexan, LLC^*	One stop	L + 5.75%	^(c)	8.08%	02/2020	2,292		2,286			0.2		2,292
Flexan, LLC^{^}	One stop	L + 5.75%	^(c)	8.08%	02/2020	1,077		1,076			0.1		1,077
Flexan, LLC	One stop	P + 4.50%	^(f)	10.00%	02/2020	18		18			—		18
Inhance Technologies Holdings LLC	One stop	L + 5.25%	^(c)	7.65%	07/2024	6,846		6,716			0.7		6,846
Inhance Technologies Holdings LLC	One stop	L + 5.25%	^(b)	7.78%	07/2024	59		58			—		59
Inhance Technologies Holdings LLC	One stop	P + 4.25%	^(f)	9.75%	07/2024	10		9			—		10
						10,302		10,163			1.0		10,302
Diversified/Conglomerate Manufacturing
Blackbird Purchaser, Inc. ^~	Senior loan	L + 4.50%	^(c)	6.83%	04/2026	4,656		4,611			0.5		4,586
Blackbird Purchaser, Inc.	Senior loan	L + 4.50%	^(c)	6.83%	04/2026	43		39			—		40
Blackbird Purchaser, Inc.	Senior loan	P + 3.50%	^(f)	9.00%	04/2024	14		12			—		13
Chase Industries, Inc.^~	Senior loan	L + 4.00%	^(c)(f)	6.34%	05/2025	6,819		6,718			0.7		6,819
Chase Industries, Inc.	Senior loan	L + 4.00%	^(c)(f)	6.38%	05/2023	99		97			—		99
Chase Industries, Inc.	Senior loan	L + 4.00%	^(c)(f)	6.33%	05/2025	67		64			—		67
Inventus Power, Inc.^{^*}	One stop	L + 6.50%	^(a)	8.90%	04/2020	7,155		7,150			0.7		6,440
Inventus Power, Inc.	One stop	L + 6.50%	^(a)	8.90%	04/2020	271		271			—		236
Pasternack Enterprises, Inc. and Fairview Microwave, Inc^~	Senior loan	L + 4.00%	^(c)(f)	6.33%	07/2025	7,105		7,074			0.7		7,105
Pasternack Enterprises, Inc. and Fairview Microwave, Inc	Senior loan	L + 4.00%		N/A⁽⁶⁾	07/2023	—		—			—		—
PetroChoice Holdings, Inc.^{^}	Senior loan	L + 5.00%	^(c)	7.58%	08/2022	1,719		1,693			0.2		1,716
Reladyne, Inc.^{^*}	Senior loan	L + 5.00%	^(c)	7.59%	07/2022	16,749		16,598			1.7		16,749

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Diversified/Conglomerate Manufacturing - (continued)
Reladyne, Inc.	Senior loan	L + 5.00%	^(c)	7.59%	07/2022	$	303	$	301		0.1	%	$	303
Reladyne, Inc.^{^}	Senior loan	L + 5.00%	^(c)	7.59%	07/2022	172		171			—		172
Reladyne, Inc.^~	Senior loan	L + 5.00%	^(c)	7.59%	07/2022	141		140			—		141
Reladyne, Inc.	Senior loan	L + 5.00%	^(c)	7.59%	07/2022	100		99			—		100
Reladyne, Inc.^~	Senior loan	L + 5.00%	^(c)	7.59%	07/2022	64		64			—		64
Reladyne, Inc.⁽⁵⁾	Senior loan	L + 5.00%		N/A⁽⁶⁾	07/2022	—		(2		)	—		—
Sunless Merger Sub, Inc.	Senior loan	L + 5.00%	^(a)(f)	7.20%	07/2019	1,291		1,291			0.1		1,291
Sunless Merger Sub, Inc.	Senior loan	P + 3.75%	^(f)	9.25%	07/2019	142		142			—		142
Togetherwork Holdings, LLC^*	One stop	L + 6.25%	^(a)	8.65%	03/2025	9,089		8,977			0.9		9,089
Togetherwork Holdings, LLC^*	One stop	L + 6.25%	^(a)	8.65%	03/2025	553		546			0.1		553
Togetherwork Holdings, LLC	One stop	L + 6.25%	^(a)	8.65%	03/2025	149		147			—		149
Togetherwork Holdings, LLC^~	One stop	L + 6.25%	^(a)	8.65%	03/2025	121		120			—		121
Togetherwork Holdings, LLC^*~	One stop	L + 6.25%	^(a)	8.65%	03/2025	115		113			—		115
Togetherwork Holdings, LLC^*	One stop	L + 6.25%	^(a)	8.65%	03/2025	107		106			—		107
Togetherwork Holdings, LLC	One stop	L + 6.25%	^(a)	8.65%	03/2024	73		71			—		73
Togetherwork Holdings, LLC	One stop	L + 6.25%	^(a)	8.65%	03/2025	67		66			—		67
Togetherwork Holdings, LLC^~	One stop	L + 6.25%	^(a)	8.65%	03/2025	4		4			—		4
Togetherwork Holdings, LLC	One stop	L + 6.25%		N/A⁽⁶⁾	03/2025	—		—			—		—
						57,188		56,683			5.7		56,361
Diversified/Conglomerate Service
3ES Innovation, Inc.^~(8)(12)	One stop	L + 5.75%	^(c)	8.29%	05/2025	4,908		4,800			0.5		4,798
3ES Innovation, Inc.^(5)(8)(12)	One stop	L + 5.75%		N/A⁽⁶⁾	05/2025	—		(2		)	—		(2		)
Accela, Inc.^*	One stop	L + 6.25%	^(c)	8.58%	09/2023	5,260		5,202			0.5		4,682
Accela, Inc.	One stop	L + 6.25%	^(a)	8.65%	08/2019	440		439			0.1		440
Accela, Inc.	One stop	L + 6.25%	^(c)	8.58%	09/2023	52		51			—		48
Agility Recovery Solutions Inc.^{^*}	One stop	L + 6.00%	^(a)	8.40%	03/2023	15,748		15,576			1.6		15,748
Agility Recovery Solutions Inc.	One stop	L + 6.00%	^(b)	8.53%	03/2023	139		130			—		139
Apptio, Inc. ^~	One stop	L + 7.25%	^(a)	9.67%	01/2025	27,224		26,716			2.8		26,680
Apptio, Inc. ⁽⁵⁾	One stop	L + 7.25%		N/A⁽⁶⁾	01/2025	—		(2		)	—		(2		)
Arch Global CCT Holdings Corp.^~	Senior loan	L + 4.75%	^(a)(c)	7.15%	04/2026	1,564		1,549			0.2		1,548
Arch Global CCT Holdings Corp.	Senior loan	L + 4.75%		N/A⁽⁶⁾	04/2026	—		—			—		—
Arch Global CCT Holdings Corp.	Senior loan	L + 4.75%		N/A⁽⁶⁾	04/2025	—		—			—		—
Astute Holdings, Inc. ^~	One stop	L + 6.00%	^(a)	8.42%	04/2025	4,725		4,634			0.5		4,678
Astute Holdings, Inc.	One stop	L + 6.00%	^(a)	8.40%	04/2025	10		9			—		9
Astute Holdings, Inc. ⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	04/2025	—		(2		)	—		(2		)
AutoQuotes, LLC^~	One stop	L + 6.00%	^(c)	8.53%	11/2024	4,636		4,562			0.5		4,636
AutoQuotes, LLC	One stop	L + 6.00%		N/A⁽⁶⁾	11/2024	—		—			—		—
Axiom Merger Sub Inc.^~	One stop	L + 5.50%	^(b)(c)	7.99%	04/2026	3,339		3,282			0.3		3,305
Axiom Merger Sub Inc.^~(8)(9)	One stop	E + 5.75%	^(g)	5.75%	04/2026	1,391		1,367			0.1		1,384
Axiom Merger Sub Inc.⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	04/2026	—		(1		)	—		—
Axiom Merger Sub Inc.⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	04/2026	—		(3		)	—		(2		)
Bazaarvoice, Inc.^*~	One stop	L + 5.75%	^(a)	8.15%	02/2024	19,270		19,049			2.0		19,270
Bazaarvoice, Inc.	One stop	L + 5.75%	^(a)(c)	8.12%	02/2024	130		127			—		130
Calabrio, Inc. ^~	One stop	L + 6.50%	^(c)	8.83%	06/2025	4,940		4,891			0.5		4,891
Calabrio, Inc. ⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	06/2025	—		(1		)	—		(1		)

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Diversified/Conglomerate Service - (continued)
Caliper Software, Inc.^~	One stop	L + 6.00%	^(c)(f)	8.33%	11/2025	$	11,069	$	10,937		1.1	%	$	11,069
Caliper Software, Inc.	One stop	L + 6.00%	^(c)	8.33%	11/2023	100		98			—		100
Centrify Corporation^*	One stop	L + 6.25%	^(c)	8.58%	08/2024	10,892		10,751			1.1		10,674
Centrify Corporation	One stop	P + 5.25%	^(f)	10.75%	08/2024	150		148			—		147
Clearwater Analytics, LLC^{^*}	One stop	L + 5.00%	^(a)	7.4%	09/2022	8,532		8,358			0.9		8,319
Clearwater Analytics, LLC⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	09/2022	—		(2		)	—		(3		)
Cloudbees, Inc.	One stop	L + 9.00%	^(a)	10.94% cash/0.50% PIK	05/2023	1,905		1,857			0.2		1,905
Cloudbees, Inc.	One stop	L + 8.50%		N/A⁽⁶⁾	05/2023	—		—			—		—
Confluence Technologies, Inc.	One stop	L + 5.50%	^(a)	7.91%	03/2024	6,980		6,857			0.7		6,980
Confluence Technologies, Inc.⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	03/2024	—		(1		)	—		—
Connexin Software, Inc.^~	One stop	L + 8.50%	^(c)	10.83%	02/2024	2,488		2,441			0.3		2,488
Connexin Software, Inc.	One stop	L + 8.50%		N/A⁽⁶⁾	02/2024	—		—			—		—
Conservice, LLC^~	One stop	L + 5.25%	^(c)	7.58%	12/2024	1,783		1,767			0.2		1,783
Conservice, LLC	One stop	L + 5.25%		N/A⁽⁶⁾	12/2024	—		—			—		—
Daxko Acquisition Corporation^{^*}	One stop	L + 4.75%	^(b)	7.10%	09/2023	11,160		10,963			1.2		11,160
Daxko Acquisition Corporation⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	09/2023	—		(1		)	—		—
Digital Guardian, Inc.	One stop	L + 9.50%	^(c)	9.09% cash/3.00% PIK	06/2023	4,030		3,991			0.4		4,198
Digital Guardian, Inc.	Subordinated debt	N/A		8.00% PIK	06/2023	4		—			—		4
Digital Guardian, Inc.	One stop	L + 6.50%		N/A⁽⁶⁾	06/2023	—		—			—		1
Digital Guardian, Inc.	One stop	L + 5.00%		N/A⁽⁶⁾	06/2023	—		—			—		—
DISA Holdings Acquisition Subsidiary Corp.^~	Senior loan	L + 4.00%	^(c)(f)	6.68%	06/2022	2,104		2,095			0.2		2,104
DISA Holdings Acquisition Subsidiary Corp.	Senior loan	L + 4.00%	^(c)(f)	6.85%	06/2022	7		7			—		7
DISA Holdings Acquisition Subsidiary Corp.	Senior loan	L + 4.00%		N/A⁽⁶⁾	06/2022	—		—			—		—
DISA Holdings Acquisition Subsidiary Corp.	Senior loan	L + 4.00%		N/A⁽⁶⁾	06/2022	—		—			—		—
E2open, LLC^*~	One stop	L + 5.00%	^(c)	7.52%	11/2024	36,765		36,268			3.8		36,398
E2open, LLC	One stop	L + 5.00%	^(c)	7.52%	11/2024	624		615			0.1		617
E2open, LLC⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	11/2024	—		(3		)	—		(2		)
EGD Security Systems, LLC^{^*}	One stop	L + 5.75%	^(c)	8.34%	06/2023	14,952		14,750			1.5		14,802
EGD Security Systems, LLC	One stop	L + 5.75%	^(c)	8.34%	06/2023	25		23			—		23
EGD Security Systems, LLC⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	06/2023	—		(2		)	—		(3		)
GS Acquisitionco, Inc.^*~	One stop	L + 5.25%	^(a)	7.66%	05/2024	27,670		27,431			2.9		27,670
GS Acquisitionco, Inc.^*	One stop	L + 5.25%	^(a)	7.66%	05/2024	871		864			0.1		871
GS Acquisitionco, Inc.	One stop	L + 5.25%	^(a)	7.66%	05/2024	200		198			—		200
GS Acquisitionco, Inc.^~	One stop	L + 5.25%	^(a)	7.66%	05/2024	184		183			—		184
GS Acquisitionco, Inc.⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	05/2024	—		(1		)	—		—
GS Acquisitionco, Inc.⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	05/2024	—		(1		)	—		—
HealthcareSource HR, Inc.^*	One stop	L + 5.25%	^(c)	7.58%	05/2023	23,209		22,786			2.4		23,209
HealthcareSource HR, Inc.⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	05/2023	—		(2		)	—		—
Hydraulic Authority III Limited^(8)(9)(10)	One stop	L + 6.00%	^(h)(j)	7.00%	11/2025	5,915		5,860			0.6		5,876
Hydraulic Authority III Limited^(8)(9)(10)	One stop	N/A		11.00% PIK	11/2028	85		85			—		85
Hydraulic Authority III Limited^(8)(9)(10)	One stop	L + 6.00%	^(h)	7.00%	11/2025	8		8			—		8
ICIMS, Inc.^~	One stop	L + 6.50%	^(a)	8.90%	09/2024	5,413		5,319			0.6		5,413
ICIMS, Inc.^~	One stop	L + 6.50%	^(a)	8.91%	06/2025	2,000		1,980			0.2		2,000
ICIMS, Inc.⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	09/2024	—		(1		)	—		—

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Diversified/Conglomerate Service - (continued)
III US Holdings, LLC	One stop	L + 6.00%		N/A⁽⁶⁾	09/2022	$	—	$	—		—	%	$	—
Imprivata, Inc.^*~	Senior loan	L + 4.00%	^(c)	6.33%	10/2023	8,149		8,050			0.8		8,149
Imprivata, Inc.⁽⁵⁾	Senior loan	L + 4.00%		N/A⁽⁶⁾	10/2023	—		(2		)	—		—
Infogix, Inc.^*	One stop	L + 6.00%	^(c)	8.33%	04/2024	3,305		3,292			0.3		3,305
Infogix, Inc.^*	One stop	L + 6.00%	^(c)	8.33%	04/2024	510		504			0.1		510
Infogix, Inc.	One stop	L + 6.00%	^(c)	8.15%	04/2024	14		13			—		14
Integral Ad Science, Inc.^~	One stop	L + 7.25%	^(a)	8.41% cash/1.25% PIK	07/2024	5,047		4,963			0.5		5,047
Integral Ad Science, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	07/2023	—		(1		)	—		(2		)
Integration Appliance, Inc.^{^*~}	One stop	L + 7.25%	^(a)	9.69%	08/2023	37,761		37,409			3.9		37,384
Integration Appliance, Inc.⁽⁵⁾	One stop	L + 7.25%		N/A⁽⁶⁾	08/2023	—		(6		)	—		(9		)
Internet Truckstop Group LLC^~	One stop	L + 5.50%	^(a)	7.91%	04/2025	4,875		4,758			0.5		4,875
Internet Truckstop Group LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	04/2025	—		(3		)	—		—
Invoice Cloud, Inc.^~	One stop	L + 6.50%	^(c)	5.79% cash/3.25% PIK	02/2024	3,877		3,815			0.4		3,877
Invoice Cloud, Inc.	One stop	L + 6.00%		N/A⁽⁶⁾	02/2024	—		—			—		—
Invoice Cloud, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	02/2024	—		(1		)	—		—
JAMF Holdings, Inc.^~	One stop	L + 7.00%	^(c)	9.53%	11/2022	5,277		5,180			0.5		5,277
JAMF Holdings, Inc.	One stop	L + 7.00%	^(a)	9.41%	11/2022	34		33			—		34
Kareo, Inc.	One stop	L + 9.00%	^(a)	11.40%	06/2022	4,518		4,382			0.5		4,551
Kareo, Inc.^~	One stop	L + 9.00%	^(a)	11.40%	06/2022	414		408			0.1		417
Kareo, Inc.	One stop	L + 9.00%	^(a)	11.40%	06/2022	332		328			0.1		334
Kareo, Inc.	One stop	L + 9.00%		N/A⁽⁶⁾	06/2022	—		—			—		—
Kaseya Traverse Inc^*~	One stop	L + 6.50%	^(a)	7.94% cash/1.00% PIK	05/2025	4,814		4,721			0.5		4,718
Kaseya Traverse Inc⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	05/2025	—		(1		)	—		(1		)
Kaseya Traverse Inc⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	05/2025	—		(2		)	—		(2		)
Keais Records Service, LLC^~	One stop	L + 4.50%	^(a)	6.90%	10/2024	8,768		8,651			0.9		8,768
Keais Records Service, LLC	One stop	L + 4.50%		N/A⁽⁶⁾	10/2024	—		—			—		—
Keais Records Service, LLC⁽⁵⁾	One stop	L + 4.50%		N/A⁽⁶⁾	10/2024	—		(1		)	—		—
Learn-it Systems, LLC^~	Senior loan	L + 4.50%	^(c)	6.90%	03/2025	878		865			0.1		878
Learn-it Systems, LLC	Senior loan	L + 4.50%	^(a)(c)	6.90%	03/2025	10		10			—		10
Learn-it Systems, LLC⁽⁵⁾	Senior loan	L + 4.50%		N/A⁽⁶⁾	03/2025	—		(1		)	—		—
Litera Bidco LLC^~	One stop	L + 5.75%	^(d)	7.95%	05/2026	1,975		1,951			0.2		1,975
Litera Bidco LLC	One stop	L + 5.75%		N/A⁽⁶⁾	05/2025	—		—			—		—
Litera Bidco LLC	One stop	L + 5.75%		N/A⁽⁶⁾	05/2026	—		—			—		—
Litera Bidco LLC⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	05/2026	—		(1		)	—		—
Maverick Bidco Inc.^*~	One stop	L + 6.25%	^(c)	8.58%	04/2023	17,334		17,107			1.8		16,988
Maverick Bidco Inc.^*	One stop	L + 6.25%	^(c)	8.58%	04/2023	166		165			—		162
Maverick Bidco Inc.	One stop	L + 6.25%	^(c)	8.83%	04/2023	33		32			—		31
MetricStream, Inc.^~	One stop	L + 7.00%	^(c)	9.34%	05/2024	4,775		4,641			0.5		4,632
MetricStream, Inc.	One stop	L + 7.00%		N/A⁽⁶⁾	05/2024	—		—			—		—
MetricStream, Inc.⁽⁵⁾	One stop	L + 7.00%		N/A⁽⁶⁾	04/2024	—		(1		)	—		—
Mindbody, Inc.^~	One stop	L + 7.00%	^(a)	9.39%	02/2025	22,609		22,397			2.3		22,609
Mindbody, Inc.⁽⁵⁾	One stop	L + 7.00%		N/A⁽⁶⁾	02/2025	—		(1		)	—		—
Ministry Brands, LLC	Senior loan	L + 4.00%	^(c)	6.33%	12/2022	860		856			0.1		860

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Diversified/Conglomerate Service - (continued)
Ministry Brands, LLC	Senior loan	L + 4.00%	^(c)	6.33%	12/2022	$	492	$	490		0.1	%	$	492
Ministry Brands, LLC	Senior loan	L + 4.00%	^(c)	6.33%	12/2022	27		27			—		27
MMan Acquisition Co.^{^*}	One stop	L + 3.00%	^(c)	5.58%	08/2023	9,875		9,775			0.8		7,900
Namely, Inc.^~	One stop	L + 7.50%	^(c)	8.56% cash/1.25% PIK	06/2024	1,700		1,684			0.2		1,678
Namely, Inc.	One stop	L + 6.25%		N/A⁽⁶⁾	06/2024	—		—			—		—
Namely, Inc.⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	06/2024	—		(1		)	—		(1		)
Net Health Acquisition Corp.^*	One stop	L + 5.50%	^(c)	7.83%	12/2023	3,828		3,799			0.4		3,828
Net Health Acquisition Corp.^*	One stop	L + 5.50%	^(c)	7.83%	12/2023	536		532			0.1		536
Net Health Acquisition Corp.	One stop	L + 5.50%		N/A⁽⁶⁾	12/2023	—		—			—		—
Netsmart Technologies, Inc.⁽⁵⁾	Senior loan	P + 3.75%	^(f)	9.25%	04/2021	2		(1		)	—		1
Nextech Holdings, LLC^~	One stop	L + 5.50%	^(c)	7.90%	06/2025	1,400		1,386			0.1		1,386
Nextech Holdings, LLC	One stop	L + 5.50%	^(c)	0.079	06/2025	50		47			—		47
Nextech Holdings, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	06/2025	—		(3		)	—		(3		)
Nexus Brands Group, Inc.^*	One stop	L + 6.00%	^(c)	8.43%	11/2023	5,707		5,654			0.6		5,707
Nexus Brands Group, Inc.⁽⁸⁾⁽⁹⁾	One stop	L + 6.00%	^(c)	7.00%	11/2023	3,238		3,210			0.3		3,229
Nexus Brands Group, Inc.	One stop	L + 6.00%	^(c)	8.33%	11/2023	124		124			—		124
Nexus Brands Group, Inc.^~	One stop	L + 6.00%	^(c)	8.33%	11/2023	90		89			—		90
Nexus Brands Group, Inc.	One stop	L + 6.00%	^(a)(c)	8.42%	11/2023	40		39			—		40
Nexus Brands Group, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	11/2023	—		(1		)	—		—
Nexus Brands Group, Inc.^(5)(8)(9)	One stop	L + 6.00%		N/A⁽⁶⁾	11/2023	—		(1		)	—		—
Nexus Brands Group, Inc.⁽⁸⁾⁽⁹⁾	One stop	L + 6.00%		N/A⁽⁶⁾	11/2023	—		—			—		—
Personify, Inc.^*	One stop	L + 5.75%	^(c)	8.08%	09/2024	7,277		7,214			0.8		7,277
Personify, Inc.	One stop	L + 5.75%	^(c)	8.06%	09/2024	20		19			—		20
PlanSource Holdings, Inc. ^~	One stop	L + 6.25%	^(d)	8.81%	04/2025	4,354		4,312			0.4		4,311
PlanSource Holdings, Inc. ⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	04/2025	—		(1		)	—		(1		)
Project Power Buyer, LLC^~	One stop	L + 5.75%	^(c)	8.28%	05/2026	4,925		4,865			0.5		4,876
Project Power Buyer, LLC⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	05/2025	—		(1		)	—		(1		)
Property Brands, Inc.	One stop	L + 6.00%	^(a)	8.40%	01/2024	10,790		10,605			1.1		10,790
Property Brands, Inc.^*	One stop	L + 6.00%	^(a)	8.40%	01/2024	3,041		3,013			0.3		3,041
Property Brands, Inc.^{^}	One stop	L + 6.00%	^(a)	8.40%	01/2024	217		215			—		217
Property Brands, Inc.	One stop	L + 6.00%	^(a)	8.40%	01/2024	142		140			—		142
Property Brands, Inc.	One stop	L + 6.00%	^(a)	8.40%	01/2024	120		119			—		120
Property Brands, Inc.	One stop	L + 6.00%	^(a)	8.40%	01/2024	80		79			—		80
Property Brands, Inc.	One stop	L + 6.00%	^(a)	8.40%	01/2024	50		49			—		50
Property Brands, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	01/2024	—		(1		)	—		—
Property Brands, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	01/2024	—		(4		)	—		—
Qgenda Intermediate Holdings, LLC	One stop	L + 4.75%	^(a)	7.15%	06/2025	10,570		10,412			1.1		10,465
Qgenda Intermediate Holdings, LLC⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	06/2025	—		(1		)	—		(1		)
RegEd Aquireco, LLC	Senior loan	L + 4.25%	^(a)	6.65%	12/2024	8,750		8,610			0.9		8,750
RegEd Aquireco, LLC⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	12/2024	—		(1		)	—		—
RegEd Aquireco, LLC⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	12/2024	—		(6		)	—		—
Saba Software, Inc.^{^*~}	Senior loan	L + 4.50%	^(c)	6.83%	05/2023	21,392		21,144			2.2		21,392
Saba Software, Inc.^~	Senior loan	L + 4.50%	^(c)	6.83%	05/2023	6,892		6,830			0.7		6,892
Saba Software, Inc.⁽⁵⁾	Senior loan	L + 4.50%		N/A⁽⁶⁾	05/2023	—		(2		)	—		—
Telesoft, LLC^*	One stop	L + 5.00%	^(c)	7.59%	07/2022	3,490		3,465			0.4		3,490
Telesoft, LLC	One stop	L + 5.00%		N/A⁽⁶⁾	07/2022	—		—			—		—

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Diversified Conglomerate/Service - (continued)
TI Intermediate Holdings, LLC	Senior loan	L + 4.50%	^(a)(f)	6.91%	12/2024	$	1,671	$	1,656		0.2	%	$	1,671
TI Intermediate Holdings, LLC	Senior loan	L + 4.50%	^(a)	6.90%	12/2024	4		3			—		4
Transaction Data Systems, Inc.^*~	One stop	L + 5.25%	^(a)	7.66%	06/2021	38,758		38,639			4.0		38,758
Transaction Data Systems, Inc.	One stop	L + 5.25%	^(a)	7.66%	06/2021	70		70			—		70
Trintech, Inc.^{^*}	One stop	L + 6.50%	^(c)	9.09%	12/2023	10,793		10,692			1.1		10,793
Trintech, Inc.^{^~}	One stop	L + 6.50%	^(c)	9.09%	12/2023	3,386		3,355			0.3		3,386
Trintech, Inc.	One stop	L + 6.50%	^(c)	9.04%	12/2023	60		59			—		60
True Commerce, Inc.^{^~}	One stop	L + 5.75%	^(c)	8.08%	11/2023	6,547		6,486			0.7		6,547
True Commerce, Inc.⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	11/2023	—		(1		)	—		—
Upserve, Inc.^~	One stop	L + 5.50%	^(a)	7.90%	07/2023	2,969		2,951			0.3		2,969
Upserve, Inc.	One stop	L + 5.50%	^(a)	7.90%	07/2023	100		99			—		100
Upserve, Inc.	One stop	L + 5.50%		N/A⁽⁶⁾	07/2023	—		—			—		—
Vector CS Midco Limited & Cloudsense Ltd.^{(8)(9)(10)(13)}	One stop	L + 7.25%	^(c)	5.31% cash/2.75% PIK	05/2024	3,605		3,571			0.4		3,466
Vector CS Midco Limited & Cloudsense Ltd.^{(5)(8)(9)(10)}	One stop	L + 4.50%		N/A⁽⁶⁾	05/2024	—		(1		)	—		(1		)
Velocity Technology Solutions, Inc.^*	One stop	L + 6.00%	^(c)	8.33%	12/2023	8,165		8,058			0.8		8,165
Velocity Technology Solutions, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	12/2023	—		(1		)	—		—
Vendavo, Inc.^*~	One stop	L + 8.50%	^(c)	10.83%	10/2022	28,864		28,460			3.0		28,864
Vendavo, Inc.	One stop	P + 7.25%	^(f)	12.75%	10/2022	315		308			0.1		315
Verisys Corporation^*	One stop	L + 7.75%	^(c)	10.08%	01/2023	3,857		3,821			0.4		3,857
Verisys Corporation	One stop	L + 7.75%	^(c)	10.15%	01/2023	20		19			—		20
Workforce Software, LLC^{^}	One stop	L + 6.50%	^(c)	9.08%	06/2021	5,790		5,766			0.6		5,850
Workforce Software, LLC^~	One stop	L + 6.50%	^(c)	9.02%	06/2021	577		573			0.1		577
Workforce Software, LLC	One stop	L + 6.50%		N/A⁽⁶⁾	06/2021	—		—			—		1
						634,006		626,015			65.2		628,518
Ecological
Pace Analytical Services, LLC^~	One stop	L + 5.50%	^(a)	7.90%	09/2022	15,074		14,819			1.6		15,074
Pace Analytical Services, LLC^{^}	One stop	L + 5.50%	^(a)	7.90%	09/2022	1,401		1,386			0.1		1,401
Pace Analytical Services, LLC^*	One stop	L + 5.50%	^(a)	7.90%	09/2022	711		704			0.1		711
Pace Analytical Services, LLC^*	One stop	L + 5.50%	^(a)	7.90%	09/2022	343		339			0.1		343
Pace Analytical Services, LLC	One stop	L + 5.50%	^(a)	7.90%	09/2022	159		157			—		159
Pace Analytical Services, LLC^{^}	One stop	L + 5.50%	^(a)	7.90%	09/2022	117		116			—		117
Pace Analytical Services, LLC	One stop	L + 5.50%	^(a)	7.90%	09/2022	54		53			—		54
Pace Analytical Services, LLC	One stop	L + 5.50%	^(a)	7.90%	09/2022	30		28			—		30
Pace Analytical Services, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	09/2022	—		(1		)	—		—
Pace Analytical Services, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	09/2022	—		(1		)	—		—
WRE Holding Corp.^*	Senior loan	L + 5.00%	^(a)	7.44%	01/2023	1,003		996			0.1		1,003
WRE Holding Corp.^~	Senior loan	L + 5.00%	^(a)	7.44%	01/2023	42		42			—		42
WRE Holding Corp.	Senior loan	L + 5.00%	^(a)(f)	7.44%	01/2023	18		18			—		18
WRE Holding Corp.	Senior loan	L + 5.00%	^(a)	7.44%	01/2023	12		12			—		12
						18,964		18,668			2.0		18,964

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Electronics
Appriss Holdings, Inc.^~	One stop	L + 5.50%	^(c)	7.83%	06/2026	$	4,796	$	4,702		0.5	%	$	4,748
Appriss Holdings, Inc.⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	06/2025	—		(4		)	—		(2		)
Compusearch Software Holdings, Inc.^{^~}	Senior loan	L + 4.25%	^(c)	6.58%	05/2021	2,015		2,012			0.2		2,015
Diligent Corporation^*~	One stop	L + 5.50%	^(c)	7.83%	04/2022	25,935		25,717			2.7		25,935
Diligent Corporation^~	One stop	L + 5.50%	^(c)	7.83%	04/2022	4,842		4,793			0.5		4,842
Diligent Corporation^*~	One stop	L + 5.50%	^(c)	7.83%	04/2022	4,754		4,682			0.5		4,754
Diligent Corporation^{^*}	One stop	L + 5.50%	^(c)	7.83%	04/2022	2,603		2,573			0.3		2,603
Diligent Corporation	One stop	L + 5.50%	^(c)(d)	8.14%	04/2022	172		169			—		172
Diligent Corporation^~	One stop	L + 5.50%	^(c)	8.02%	04/2022	101		101			—		101
Diligent Corporation^~	One stop	L + 5.50%	^(d)	8.19%	04/2022	80		79			—		80
Diligent Corporation	One stop	L + 5.50%	^(d)	8.35%	04/2022	54		54			—		54
Diligent Corporation	One stop	L + 5.50%	^(d)	8.35%	04/2022	39		38			—		39
Diligent Corporation^~	One stop	L + 5.50%	^(d)	8.19%	04/2022	36		35			—		36
Diligent Corporation⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	04/2022	—		(3		)	—		—
Episerver, Inc.^~(8)(9)	One stop	L + 6.00%	^(a)	6.00%	10/2024	9,936		9,820			1.0		9,834
Episerver, Inc.^*	One stop	L + 5.75%	^(a)	8.15%	10/2024	5,760		5,693			0.6		5,760
Episerver, Inc.⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	10/2024	—		(2		)	—		—
Gamma Technologies, LLC^{^*~}	One stop	L + 5.25%	^(a)	7.65%	06/2024	21,317		21,158			2.2		21,317
Gamma Technologies, LLC⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	06/2024	—		(1		)	—		—
SEI, Inc.^*	Senior loan	L + 4.75%	^(a)	7.15%	07/2023	5,036		4,994			0.5		5,036
Silver Peak Systems, Inc. ^~	One stop	L + 7.00%	^(a)	9.39%	04/2024	1,848		1,814			0.2		1,857
Silver Peak Systems, Inc.	One stop	L + 7.00%		N/A⁽⁶⁾	04/2024	—		—			—		—
Sloan Company, Inc., The	One stop	L + 8.50%	^(c)	10.83%	04/2020	6,636		6,614			0.4		3,982
Sloan Company, Inc., The	One stop	L + 8.50%	^(c)	10.83%	04/2020	444		444			—		266
Sloan Company, Inc., The	One stop	L + 8.50%	^(c)	10.83%	04/2020	133		130			—		133
Sloan Company, Inc., The	One stop	L + 8.50%	^(c)	10.83%	04/2020	52		52			—		31
Sovos Compliance^~	One stop	L + 4.75%	^(a)	7.15%	04/2024	3,332		3,267			0.3		3,265
Sovos Compliance^~	Second lien	N/A		12.00% PIK	04/2025	1,456		1,422			0.1		1,420
Sovos Compliance	Second lien	N/A		12.00% PIK	04/2025	74		72			—		73
Sovos Compliance	One stop	L + 4.75%	^(a)	7.15%	04/2024	49		44			—		48
Sovos Compliance⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	04/2024	—		(2		)	—		(2		)
Watchfire Enterprises, Inc.	Second lien	L + 8.00%	^(c)	10.33%	10/2021	9,435		9,362			1.0		9,435
						110,935		109,829			11.0		107,832
Finance
Institutional Shareholder Services~	Senior loan	L + 4.50%	^(c)	6.83%	03/2026	4,788		4,742			0.5		4,752
Institutional Shareholder Services	Senior loan	L + 4.50%	^(c)	6.83%	03/2024	30		28			—		27
						4,818		4,770			0.5		4,779

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Grocery
Teasdale Quality Foods, Inc.	Senior loan	L + 5.75%	^(c)	8.34%	10/2020	$	293	$	291		—	%	$	270

Healthcare, Education and Childcare
Active Day, Inc.	One stop	L + 6.50%	^(c)	8.83%	12/2021	13,163		12,984			1.4		13,163
Active Day, Inc.^{^}	One stop	L + 6.50%	^(c)	8.83%	12/2021	1,016		1,006			0.1		1,016
Active Day, Inc.^*	One stop	L + 6.50%	^(c)	8.83%	12/2021	655		649			0.1		655
Active Day, Inc.^*	One stop	L + 6.50%	^(c)	8.83%	12/2021	452		448			0.1		452
Active Day, Inc.	One stop	L + 6.50%	^(c)(f)	8.83%	12/2021	33		32			—		33
Active Day, Inc.⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	12/2021	—		(1		)	—		—
Acuity Eyecare Holdings, LLC	One stop	L + 6.25%	^(c)	8.79%	03/2023	2,564		2,524			0.3		2,564
Acuity Eyecare Holdings, LLC	One stop	L + 6.25%	^(c)	8.64%	03/2023	598		578			0.1		598
Acuity Eyecare Holdings, LLC^{^}	One stop	L + 6.25%	^(c)	8.79%	03/2023	149		148			—		149
Acuity Eyecare Holdings, LLC	One stop	L + 6.25%		N/A⁽⁶⁾	03/2023	—		—			—		—
Acuity Eyecare Holdings, LLC⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	03/2023	—		(4		)	—		—
ADCS Clinics Intermediate Holdings, LLC^~	One stop	L + 5.75%	^(c)	8.08%	05/2022	20,904		20,569			2.2		20,904
ADCS Clinics Intermediate Holdings, LLC^*	One stop	L + 5.75%	^(c)	8.08%	05/2022	106		105			—		106
ADCS Clinics Intermediate Holdings, LLC^*	One stop	L + 5.75%	^(c)	8.08%	05/2022	82		82			—		82
ADCS Clinics Intermediate Holdings, LLC	One stop	L + 5.75%	^(c)	8.12%	05/2022	37		36			—		37
ADCS Clinics Intermediate Holdings, LLC^*	One stop	L + 5.75%	^(c)	8.08%	05/2022	31		31			—		31
Agilitas USA, Inc.^*	One stop	L + 5.00%	^(c)	7.59%	04/2022	8,291		8,245			0.9		8,291
Agilitas USA, Inc.	One stop	L + 5.00%	^(c)	7.59%	04/2022	10		10			—		10
Aris Teleradiology Company, LLC⁽⁷⁾	Senior loan	L + 5.50%	^(c)	7.82%	03/2021	2,693		2,678			0.1		730
Aris Teleradiology Company, LLC⁽⁷⁾	Senior loan	L + 5.50%	^(a)(c)	8.22%	03/2021	477		477			—		64
Aspen Medical Products, LLC^~	One stop	L + 5.25%	^(c)	7.70%	06/2025	2,012		1,992			0.2		1,992
Aspen Medical Products, LLC	One stop	L + 5.25%		N/A⁽⁶⁾	06/2025	—		—			—		—
BIO18 Borrower, LLC^~	One stop	L + 5.25%	^(b)	7.74%	11/2024	7,206		7,060			0.7		7,206
BIO18 Borrower, LLC	One stop	L + 5.25%	^(b)	7.74%	11/2024	33		32			—		33
BIO18 Borrower, LLC⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	11/2024	—		(4		)	—		—
BIOVT, LLC^{^*}	One stop	L + 5.75%	^(a)	8.15%	01/2021	18,347		18,246			1.9		18,347
BIOVT, LLC^~	One stop	L + 5.75%	^(a)	8.15%	01/2021	160		159			—		160
BIOVT, LLC⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	01/2021	—		(1		)	—		—
BIOVT, LLC⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	01/2021	—		(2		)	—		—
CLP Healthcare Services, Inc.^{^}	Senior loan	L + 5.25%	^(a)	7.65%	12/2020	3,855		3,837			0.4		3,855
CRH Healthcare Purchaser, Inc.^~	Senior loan	L + 4.50%	^(c)	6.83%	12/2024	8,224		8,149			0.8		8,224
CRH Healthcare Purchaser, Inc.⁽⁵⁾	Senior loan	L + 4.50%		N/A⁽⁶⁾	12/2024	—		(1		)	—		—
CRH Healthcare Purchaser, Inc.⁽⁵⁾	Senior loan	L + 4.50%		N/A⁽⁶⁾	12/2024	—		(3		)	—		—
DCA Investment Holding, LLC^{^*}	One stop	L + 5.25%	^(c)	7.58%	07/2021	18,440		18,302			1.9		18,440
DCA Investment Holding, LLC^{^*~}	One stop	L + 5.25%	^(c)	7.58%	07/2021	13,227		13,168			1.4		13,227
DCA Investment Holding, LLC^*	One stop	L + 5.25%	^(c)	7.58%	07/2021	2,431		2,410			0.3		2,431
DCA Investment Holding, LLC	One stop	P + 4.25%	^(f)	9.75%	07/2021	219		213			—		219
DCA Investment Holding, LLC	One stop	L + 5.25%	^(c)	7.58%	07/2021	215		213			—		215
DCA Investment Holding, LLC^*	One stop	L + 5.25%	^(c)	7.58%	07/2021	150		149			—		150
DCA Investment Holding, LLC^*	One stop	L + 5.25%	^(c)	7.58%	07/2021	148		146			—		148
DCA Investment Holding, LLC	One stop	L + 5.25%	^(c)	7.58%	07/2021	138		135			—		138
DCA Investment Holding, LLC^*	One stop	L + 5.25%	^(c)	7.58%	07/2021	47		46			—		47
Deca Dental Management LLC^{^*}	One stop	L + 5.50%	^(c)	7.83%	12/2021	4,032		3,995			0.4		4,032

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Healthcare, Education, and Childcare - (continued)
Deca Dental Management LLC^~	One stop	L + 5.50%	^(a)(c)	7.86%	12/2021	$	491	$	486		0.1	%	$	491
Deca Dental Management LLC^~	One stop	L + 5.50%	^(c)	7.83%	12/2021	355		352			0.1		355
Deca Dental Management LLC	One stop	L + 5.50%	^(c)	8.00%	12/2021	35		34			—		35
Deca Dental Management LLC	One stop	L + 5.50%	^(a)	7.90%	12/2021	8		7			—		8
Dental Holdings Corporation	One stop	L + 6.00%	^(b)	8.35%	02/2020	7,093		7,065			0.7		7,093
Dental Holdings Corporation^*	One stop	L + 6.00%	^(b)	8.35%	02/2020	1,131		1,128			0.1		1,131
Dental Holdings Corporation	One stop	L + 6.00%	^(b)	8.35%	02/2020	573		570			0.1		573
Elite Dental Partners LLC^*	One stop	L + 5.25%	^(a)	7.65%	06/2023	12,182		12,034			1.3		12,182
Elite Dental Partners LLC	One stop	L + 5.25%	^(a)	7.65%	06/2023	128		126			—		128
Elite Dental Partners LLC	One stop	L + 5.25%	^(a)	7.65%	06/2023	120		118			—		120
Elite Dental Partners LLC^~	One stop	L + 5.25%	^(a)	7.65%	06/2023	114		113			—		114
Elite Dental Partners LLC^~	One stop	L + 5.25%	^(a)	7.65%	06/2023	109		108			—		109
Elite Dental Partners LLC	One stop	L + 5.25%	^(a)	7.65%	06/2023	100		99			—		100
Elite Dental Partners LLC⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	06/2023	—		(6		)	—		—
ERG Buyer, LLC^*	One stop	L + 5.50%	^(c)	7.83%	05/2024	13,083		12,920			1.3		12,691
ERG Buyer, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	05/2024	—		(9		)	—		(23		)
ERG Buyer, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	05/2024	—		(2		)	—		(5		)
eSolutions, Inc.^{^*~}	One stop	L + 6.50%	^(a)	8.90%	03/2022	36,462		36,092			3.7		36,097
eSolutions, Inc.⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	03/2022	—		(1		)	—		(1		)
Excelligence Learning Corporation^{^}	One stop	L + 6.00%	^(a)	8.40%	04/2023	4,479		4,448			0.4		3,941
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.58%	05/2023	7,866		7,726			0.8		7,708
Eyecare Services Partners Holdings LLC^*	One stop	L + 6.25%	^(c)	8.58%	05/2023	571		563			0.1		560
Eyecare Services Partners Holdings LLC^*	One stop	L + 6.25%	^(c)	8.58%	05/2023	353		351			0.1		346
Eyecare Services Partners Holdings LLC^*	One stop	L + 6.25%	^(c)	8.58%	05/2023	171		170			—		167
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.83%	05/2023	160		158			—		156
Eyecare Services Partners Holdings LLC^*	One stop	L + 6.25%	^(c)	8.58%	05/2023	99		99			—		97
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.69%	05/2023	72		62			—		71
Eyecare Services Partners Holdings LLC^*	One stop	L + 6.25%	^(c)	8.58%	05/2023	57		57			—		56
Eyecare Services Partners Holdings LLC^*	One stop	L + 6.25%	^(c)	8.58%	05/2023	50		50			—		49
Eyecare Services Partners Holdings LLC^*	One stop	L + 6.25%	^(c)	8.58%	05/2023	32		29			—		32
G & H Wire Company, Inc.^{^}	One stop	L + 5.75%	^(a)	8.15%	09/2023	4,982		4,932			0.5		4,982
G & H Wire Company, Inc.⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	09/2022	—		(1		)	—		—
Immucor, Inc.	Senior loan	L + 5.00%	^(c)	7.33%	06/2021	1,585		1,573			0.2		1,583
Joerns Healthcare, LLC^{^*(7)}	One stop	L + 6.00%	^(c)	8.52%	05/2020	3,200		3,201			0.2		1,760
Joerns Healthcare, LLC^*	One stop	L + 6.00%		8.40%	10/2019	297		297			—		297
Joerns Healthcare, LLC^{^*}	One stop	L + 6.00%	^(a)	8.40%	10/2019	297		296			—		297
Katena Holdings, Inc.^{^}	One stop	L + 5.50%	^(c)	7.83%	06/2021	8,457		8,416			0.9		8,457
Katena Holdings, Inc.^{^}	One stop	L + 5.50%	^(c)	7.83%	06/2021	826		822			0.1		826
Katena Holdings, Inc.	One stop	L + 5.50%	^(c)	7.83%	06/2021	564		559			0.1		564
Katena Holdings, Inc.	One stop	P + 4.50%	^(f)	10.00%	06/2021	25		25			—		25
Krueger-Gilbert Health Physics, LLC^~	One stop	L + 4.75%	^(a)	7.17%	05/2025	2,259		2,237			0.2		2,236
Krueger-Gilbert Health Physics, LLC⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	05/2025	—		—			—		(1		)
Krueger-Gilbert Health Physics, LLC⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	05/2025	—		(3		)	—		(3		)
Lombart Brothers, Inc.^{^*}	One stop	L + 6.25%	^(c)	8.58%	04/2023	13,554		13,356			1.4		13,554
Lombart Brothers, Inc.^{^(8)(9)}	One stop	L + 6.25%	^(c)	8.58%	04/2023	1,635		1,610			0.2		1,635
Lombart Brothers, Inc.	One stop	P + 5.00%	^(f)	10.50%	04/2023	62		60			—		62
Lombart Brothers, Inc.⁽⁸⁾⁽⁹⁾	One stop	P + 5.00%	^(f)	10.50%	04/2023	9		9			—		9

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Healthcare, Education, and Childcare - (continued)
MD Now Holdings, Inc.^~	One stop	L + 5.00%	^(c)	7.33%	08/2024	$	7,711	$	7,581		0.8	%	$	7,711
MD Now Holdings, Inc.⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	08/2024	—		(1		)	—		—
MD Now Holdings, Inc.⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	08/2024	—		(1		)	—		—
MWD Management, LLC & MWD Services, Inc.^*	One stop	L + 5.25%	^(c)	7.58%	06/2023	5,821		5,772			0.6		5,588
MWD Management, LLC & MWD Services, Inc.^{^}	One stop	L + 5.25%	^(c)	7.58%	06/2023	227		226			—		218
MWD Management, LLC & MWD Services, Inc.⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	06/2022	—		(1		)	—		(3		)
Oliver Street Dermatology Holdings, LLC^~	One stop	L + 6.25%	^(c)	7.58% cash/1.00% PIK	05/2022	9,742		9,598			0.9		8,281
Oliver Street Dermatology Holdings, LLC^~	One stop	L + 6.25%	^(c)	7.58% cash/1.00% PIK	05/2022	983		973			0.1		835
Oliver Street Dermatology Holdings, LLC^*	One stop	L + 7.25%	^(c)	8.58% cash/1.00% PIK	05/2022	219		217			—		186
Oliver Street Dermatology Holdings, LLC^{^}	One stop	L + 6.25%	^(c)	7.58% cash/1.00% PIK	05/2022	157		156			—		134
Oliver Street Dermatology Holdings, LLC	One stop	L + 6.25%	^(c)(f)	7.58% cash/1.00% PIK	05/2022	142		141			—		121
Oliver Street Dermatology Holdings, LLC^*	One stop	L + 7.25%	^(c)	8.58% cash/1.00% PIK	05/2022	139		138			—		118
Oliver Street Dermatology Holdings, LLC^*	One stop	L + 7.25%	^(c)	8.58% cash/1.00% PIK	05/2022	121		120			—		103
Oliver Street Dermatology Holdings, LLC^{^}	One stop	L + 6.25%	^(c)	7.58% cash/1.00% PIK	05/2022	94		93			—		80
Oliver Street Dermatology Holdings, LLC^*	One stop	L + 7.25%	^(c)	8.58% cash/1.00% PIK	05/2022	82		81			—		69
Oliver Street Dermatology Holdings, LLC^~	One stop	L + 7.25%	^(c)	8.58% cash/1.00% PIK	05/2022	50		50			—		43
Oliver Street Dermatology Holdings, LLC^{^}	One stop	L + 7.25%	^(c)	8.58% cash/1.00% PIK	05/2022	48		47			—		40
Oliver Street Dermatology Holdings, LLC^*	One stop	L + 7.25%	^(c)	8.58% cash/1.00% PIK	05/2022	43		43			—		37
Oliver Street Dermatology Holdings, LLC^{^}	One stop	L + 7.25%	^(c)	8.58% cash/1.00% PIK	05/2022	34		33			—		29
Oliver Street Dermatology Holdings, LLC^{^}	One stop	L + 7.25%	^(c)	8.58% cash/1.00% PIK	05/2022	31		31			—		26
ONsite Mammography, LLC	One stop	L + 6.75%	^(a)	9.15%	11/2023	3,041		2,987			0.3		3,041
ONsite Mammography, LLC	One stop	L + 6.75%	^(a)(d)	9.21%	11/2023	53		52			—		53
ONsite Mammography, LLC	One stop	L + 6.75%	^(a)(d)	9.38%	11/2023	8		7			—		8
Pinnacle Treatment Centers, Inc.	One stop	L + 5.75%	^(c)	8.33%	08/2021	9,804		9,680			1.0		9,804
Pinnacle Treatment Centers, Inc.^~	One stop	L + 5.75%	^(c)	8.33%	08/2021	363		360			0.1		363
Pinnacle Treatment Centers, Inc.	One stop	L + 5.75%	^(c)	8.33%	08/2021	95		94			—		95
Pinnacle Treatment Centers, Inc.^{^}	One stop	L + 5.75%	^(c)	8.33%	08/2021	54		54			—		54
Pinnacle Treatment Centers, Inc.	One stop	L + 5.75%	^(c)	8.33%	08/2021	33		32			—		33
Pinnacle Treatment Centers, Inc.	One stop	L + 5.75%	^(c)	8.33%	08/2021	33		31			—		33
PPT Management Holdings, LLC	One stop	L + 7.50%	^(a)	5.94% cash/4.00% PIK	12/2022	11,320		10,834			1.0		9,605
PPT Management Holdings, LLC	One stop	L + 7.50%	^(a)	5.94% cash/4.00% PIK	12/2022	149		149			—		127
PPT Management Holdings, LLC	One stop	L + 7.50%	^(a)	5.94% cash/4.00% PIK	12/2022	88		88			—		75
PPT Management Holdings, LLC	One stop	L + 7.50%	^(a)	5.94% cash/4.00% PIK	12/2022	43		35			—		36
PPT Management Holdings, LLC⁽⁵⁾	One stop	L + 7.50%	^(a)	5.94% cash/4.00% PIK	12/2022	8		5			—		(23		)
Pyramid Healthcare, Inc.^*	One stop	L + 6.50%	^(b)(c)	8.83%	08/2020	1,139		1,132			0.1		1,139
Pyramid Healthcare, Inc.	One stop	L + 6.50%	^(c)	9.01%	08/2020	75		74			—		75
Pyramid Healthcare, Inc.	One stop	L + 6.50%		N/A⁽⁶⁾	08/2020	—		—			—		—
Riverchase MSO, LLC^*	Senior loan	L + 5.75%	^(c)	8.08%	10/2022	4,893		4,851			0.5		4,893
Riverchase MSO, LLC	Senior loan	L + 5.75%	^(a)	8.15%	10/2022	10		10			—		10
RXH Buyer Corporation^{^*~}	One stop	L + 5.75%	^(c)	8.08%	09/2021	16,951		16,826			1.8		16,951
RXH Buyer Corporation^*	One stop	L + 5.75%	^(c)	8.08%	09/2021	1,918		1,905			0.2		1,918
RXH Buyer Corporation	One stop	L + 5.75%	^(c)(f)	9.14%	09/2021	79		77			—		79
SLMP, LLC^{^}	One stop	L + 6.00%	^(a)	8.40%	05/2023	7,457		7,343			0.8		7,457
SLMP, LLC^{^}	One stop	L + 6.00%	^(a)	8.40%	05/2023	294		291			—		294

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Healthcare, Education, and Childcare - (continued)
SLMP, LLC	Subordinated debt	N/A		7.50% PIK	05/2027	$	97	$	97		—	%	$	97
SLMP, LLC⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	05/2023	—		(1		)	—		—
SLMP, LLC⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	05/2023	—		(1		)	—		—
Spear Education, LLC^{^}	One stop	L + 5.75%	^(c)	8.35%	08/2019	4,561		4,559			0.5		4,561
Spear Education, LLC^*	One stop	L + 5.75%	^(c)	8.35%	08/2019	73		73			—		73
Spear Education, LLC	One stop	L + 5.75%		N/A⁽⁶⁾	08/2019	—		—			—		—
Summit Behavioral Healthcare, LLC^{^}	Senior loan	L + 4.75%	^(d)	7.44%	10/2023	8,711		8,617			0.9		8,711
Summit Behavioral Healthcare, LLC	Senior loan	L + 4.75%	^(c)(d)	7.39%	10/2023	140		138			—		140
Summit Behavioral Healthcare, LLC	Senior loan	L + 4.75%	^(d)	7.43%	10/2023	27		25			—		27
WHCG Management, LLC^*	Senior loan	L + 5.00%	^(c)	7.33%	03/2023	2,352		2,333			0.2		2,211
WHCG Management, LLC	Senior loan	L + 5.00%	^(c)	7.43%	03/2023	100		99			—		94
WHCG Management, LLC⁽⁵⁾	Senior loan	L + 5.00%		N/A⁽⁶⁾	03/2023	—		(2		)	—		—
WIRB-Copernicus Group, Inc.^{^*~}	Senior loan	L + 4.25%	^(c)	6.58%	08/2022	10,922		10,867			1.1		10,922
WIRB-Copernicus Group, Inc.⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	08/2022	—		(1		)	—		—
WIRB-Copernicus Group, Inc.⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	08/2022	—		(1		)	—		—
						364,326		360,190			36.8		354,985
Home and Office Furnishings, Housewares, and Durable Consumer
1A Smart Start LLC^~	Senior loan	L + 4.50%	^(c)	6.83%	02/2022	846		845			0.1		846
CST Buyer Company^{^}	One stop	L + 5.00%	^(a)	7.40%	03/2023	2,357		2,313			0.2		2,357
CST Buyer Company	One stop	L + 5.00%		N/A⁽⁶⁾	03/2023	—		—			—		—
Plano Molding Company, LLC^{^}	One stop	L + 7.00%	^(a)	9.40%	05/2021	9,973		9,893			1.0		9,573
						13,176		13,051			1.3		12,776
Insurance
Captive Resources Midco, LLC^{^*~}	One stop	L + 6.00%	^(c)	8.20%	05/2025	35,965		35,212			3.7		35,515
Captive Resources Midco, LLC⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	05/2025	—		(30		)	—		(18		)
Captive Resources Midco, LLC⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	05/2025	—		(32		)	—		(24		)
Integrity Marketing Acquisition, LLC^~	Senior loan	L + 4.25%	^(c)(f)	6.58%	11/2025	1,729		1,721			0.2		1,729
Integrity Marketing Acquisition, LLC	Senior loan	L + 4.25%	^(c)(f)	6.58%	11/2025	28		28			—		28
Internet Pipeline, Inc.	One stop	L + 4.75%	^(a)	7.16%	08/2022	4,774		4,699			0.5		4,774
Internet Pipeline, Inc.^*	One stop	L + 4.75%	^(a)	7.16%	08/2022	2,061		2,044			0.2		2,061
Internet Pipeline, Inc.^*	One stop	L + 4.75%	^(a)	7.16%	08/2022	780		774			0.1		780
Internet Pipeline, Inc.	One stop	L + 4.75%		N/A⁽⁶⁾	08/2021	—		—			—		—
Orchid Underwriters Agency, LLC^~	Senior loan	L + 4.50%	^(c)	6.70%	12/2024	2,379		2,358			0.2		2,379
Orchid Underwriters Agency, LLC	Senior loan	L + 4.50%		N/A⁽⁶⁾	12/2024	—		—			—		—
Orchid Underwriters Agency, LLC⁽⁵⁾	Senior loan	L + 4.50%		N/A⁽⁶⁾	12/2024	—		(1		)	—		—
RSC Acquisition, Inc.^~	Senior loan	L + 4.25%	^(b)	6.60%	11/2022	4,574		4,555			0.5		4,574
RSC Acquisition, Inc.^*	Senior loan	L + 4.25%	^(b)	6.60%	11/2022	2,286		2,265			0.2		2,286
RSC Acquisition, Inc.	Senior loan	L + 4.25%		N/A⁽⁶⁾	11/2021	—		—			—		—
RSC Acquisition, Inc.	Senior loan	L + 4.25%		N/A⁽⁶⁾	11/2022	—		—			—		—
RSC Acquisition, Inc.⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	11/2022	—		(4		)	—		—
						54,576		53,589			5.6		54,084

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Leisure, Amusement, Motion Pictures, Entertainment
EOS Fitness Opco Holdings, LLC^~	One stop	L + 4.75%	^(c)	7.08%	01/2025	$	4,772	$	4,728		0.5	%	$	4,772
EOS Fitness Opco Holdings, LLC	One stop	L + 4.75%	^(c)	7.06%	01/2025	12		11			—		12
EOS Fitness Opco Holdings, LLC	One stop	P + 3.75%	^(f)	9.25%	01/2025	6		5			—		6
PADI Holdco, Inc.^*	One stop	L + 5.75%	^(c)	8.08%	04/2023	9,536		9,357			1.0		9,536
PADI Holdco, Inc.^~(8)(9)	One stop	E + 5.75%	^(g)	5.75%	04/2023	9,452		9,452			0.9		8,995
PADI Holdco, Inc.	One stop	L + 5.75%	^(a)(c)	8.13%	04/2022	91		90			—		91
Self Esteem Brands, LLC^{^*~}	Senior loan	L + 4.25%	^(a)	6.65%	02/2022	16,183		16,104			1.7		16,183
Self Esteem Brands, LLC⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	02/2022	—		(5		)	—		—
Sunshine Sub, LLC^~	One stop	L + 4.75%	^(a)	7.15%	05/2024	7,662		7,536			0.8		7,662
Sunshine Sub, LLC	One stop	L + 4.75%	^(a)	7.15%	05/2024	424		417			0.1		424
Sunshine Sub, LLC⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	05/2024	—		(1		)	—		—
Teaching Company, The^*	One stop	L + 4.75%	^(c)	7.29%	07/2023	10,855		10,773			1.1		10,855
Teaching Company, The⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	07/2023	—		(1		)	—		—
Titan Fitness, LLC^*	One stop	L + 4.75%	^(a)	7.19%	02/2025	15,686		15,539			1.6		15,686
Titan Fitness, LLC⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	02/2025	—		(2		)	—		—
Titan Fitness, LLC⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	02/2025	—		(2		)	—		—
WBZ Investment LLC	One stop	L + 5.50%	^(a)	7.90%	09/2024	5,110		5,022			0.5		5,110
WBZ Investment LLC	One stop	L + 5.50%	^(a)	7.94%	09/2024	59		58			—		59
WBZ Investment LLC	One stop	L + 5.50%	^(a)	7.90%	09/2024	32		30			—		32
WBZ Investment LLC	One stop	L + 5.50%		N/A⁽⁶⁾	09/2024	—		—			—		—
						79,880		79,111			8.2		79,423
Oil and Gas
Drilling Info Holdings, Inc.^*~	Senior loan	L + 4.25%	^(a)	6.65%	07/2025	14,507		14,329			1.5		14,434
Drilling Info Holdings, Inc.	Senior loan	L + 4.25%		N/A⁽⁶⁾	07/2025	—		—			—		—
Drilling Info Holdings, Inc.⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	07/2023	—		(2		)	—		(1		)
						14,507		14,327			1.5		14,433
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC	One stop	L + 5.50%	^(c)	7.83%	11/2022	5,577		5,524			0.6		5,577
Georgica Pine Clothiers, LLC^*	One stop	L + 5.50%	^(c)	7.83%	11/2022	3,492		3,462			0.4		3,492
Georgica Pine Clothiers, LLC^{^}	One stop	L + 5.50%	^(c)	7.83%	11/2022	486		483			0.1		486
Georgica Pine Clothiers, LLC^*	One stop	L + 5.50%	^(c)	7.83%	11/2022	341		339			0.1		341
Georgica Pine Clothiers, LLC	One stop	L + 5.50%	^(c)	7.83%	11/2022	5		4			—		5
IMPLUS Footwear, LLC^~	One stop	L + 6.25%	^(c)	8.58%	04/2024	13,143		12,846			1.4		13,143
IMPLUS Footwear, LLC^~	One stop	L + 6.25%	^(c)	8.67%	04/2024	2,246		2,194			0.2		2,246
IMPLUS Footwear, LLC	One stop	L + 6.25%	^(c)	8.58%	04/2024	57		56			—		57
Orthotics Holdings, Inc.^*	One stop	L + 6.00%	^(a)	8.40%	05/2020	8,141		8,114			0.8		7,978
Orthotics Holdings, Inc.^*(8)(9)	One stop	L + 6.00%	^(a)	8.40%	05/2020	1,335		1,330			0.1		1,308
Orthotics Holdings, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	05/2020	—		(1		)	—		—
WU Holdco, Inc. ^~	One stop	L + 5.50%	^(c)	7.83%	03/2026	949		949			0.1		949
WU Holdco, Inc.	One stop	L + 5.50%		N/A⁽⁶⁾	03/2025	—		—			—		—
WU Holdco, Inc.	One stop	L + 5.50%		N/A⁽⁶⁾	03/2026	—		—			—		—
						35,772		35,300			3.8		35,582

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Personal, Food and Miscellaneous Services
Captain D's, LLC^{^}	Senior loan	L + 4.50%	^(a)	6.89%	12/2023	$	3,871	$	3,828		0.4	%	$	3,794
Captain D's, LLC	Senior loan	L + 4.50%	^(a)(f)	7.36%	12/2023	18		18			—		17
Clarkson Eyecare LLC^*~	One stop	L + 6.25%	^(c)	8.58%	04/2021	4,909		4,865			0.5		4,860
Clarkson Eyecare LLC	One stop	L + 6.25%	^(a)(b)(c)	8.62%	04/2021	37		36			—		36
Clarkson Eyecare LLC	One stop	L + 6.25%	^(c)	8.65%	04/2021	32		31			—		31
Clarkson Eyecare LLC⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	04/2021	—		(1		)	—		(1		)
Community Veterinary Partners, LLC^{^}	One stop	L + 5.50%	^(c)	7.83%	10/2021	280		279			—		280
Community Veterinary Partners, LLC^~	One stop	L + 5.50%	^(c)	7.83%	10/2021	111		111			—		111
Community Veterinary Partners, LLC^*	One stop	L + 5.50%	^(c)	7.83%	10/2021	98		97			—		98
Community Veterinary Partners, LLC	One stop	L + 5.50%	^(c)	7.83%	10/2021	94		94			—		94
Community Veterinary Partners, LLC^~	One stop	L + 5.50%	^(c)	7.83%	10/2021	84		83			—		84
Community Veterinary Partners, LLC^~	One stop	L + 5.50%	^(c)	7.83%	10/2021	74		74			—		74
Community Veterinary Partners, LLC	One stop	L + 5.50%	^(c)	7.83%	10/2021	40		37			—		40
Community Veterinary Partners, LLC	One stop	L + 5.50%	^(c)	7.83%	10/2021	6		3			—		6
Imperial Optical Midco Inc.^*	One stop	L + 4.75%	^(b)	7.23%	08/2023	2,704		2,671			0.3		2,670
Imperial Optical Midco Inc.	One stop	L + 4.75%	^(b)(c)	7.15%	08/2023	134		132			—		132
Imperial Optical Midco Inc.	One stop	L + 4.75%	^(c)	7.16%	08/2023	87		86			—		86
Imperial Optical Midco Inc.	One stop	L + 4.75%	^(b)(c)	7.10%	08/2023	50		49			—		49
Imperial Optical Midco Inc.	One stop	L + 4.75%		N/A⁽⁶⁾	08/2023	—		—			—		—
Imperial Optical Midco Inc.⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	08/2023	—		(5		)	—		(4		)
PPV Intermediate Holdings II, LLC	One stop	L + 5.00%	^(c)	7.56%	05/2020	165		162			—		165
PPV Intermediate Holdings II, LLC	One stop	N/A		7.90% PIK	05/2023	2		2			—		2
PPV Intermediate Holdings II, LLC⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	05/2023	—		(1		)	—		—
Ruby Slipper Cafe LLC, The^*	One stop	L + 7.50%	^(c)	10.08%	01/2023	1,028		1,020			0.1		1,028
Ruby Slipper Cafe LLC, The	One stop	L + 7.50%	^(c)	10.04%	01/2023	30		29			—		30
Ruby Slipper Cafe LLC, The	One stop	L + 7.50%	^(c)	10.02%	01/2023	5		5			—		5
Southern Veterinary Partners, LLC^*	One stop	L + 5.50%	^(a)	7.90%	05/2025	3,841		3,790			0.4		3,841
Southern Veterinary Partners, LLC^*	One stop	L + 5.50%	^(a)	7.90%	05/2025	230		227			—		230
Southern Veterinary Partners, LLC^~	One stop	L + 5.50%	^(a)	7.90%	05/2025	203		202			—		203
Southern Veterinary Partners, LLC^*	One stop	L + 5.50%	^(a)	7.90%	05/2025	171		169			—		171
Southern Veterinary Partners, LLC	One stop	L + 5.50%	^(a)	7.90%	05/2025	131		130			—		131
Southern Veterinary Partners, LLC	One stop	L + 5.50%	^(a)	7.90%	05/2025	131		130			—		131
Southern Veterinary Partners, LLC^~	One stop	L + 5.50%	^(a)	7.90%	05/2025	111		111			—		111

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Personal, Food and Miscellaneous Services - (continued)
Southern Veterinary Partners, LLC^*	One stop	L + 5.50%	^(a)	7.90%	05/2025	$	99	$	97		—	%	$	99
Southern Veterinary Partners, LLC^*	One stop	L + 5.50%	^(a)	7.90%	05/2025	76		75			—		76
Southern Veterinary Partners, LLC^*	One stop	L + 5.50%	^(a)	7.90%	05/2025	66		65			—		66
Southern Veterinary Partners, LLC^*	One stop	L + 5.50%	^(a)	7.9%	05/2025	50		48			—		50
Southern Veterinary Partners, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	05/2023	—		(1		)	—		—
Southern Veterinary Partners, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	05/2025	—		(4		)	—		—
Veterinary Specialists of North America, LLC^*~	Senior loan	L + 4.25%	^(a)	6.65%	04/2025	3,829		3,792			0.4		3,829
Veterinary Specialists of North America, LLC⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	04/2025	—		(3		)	—		—
Veterinary Specialists of North America, LLC⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	04/2025	—		(8		)	—		—
Wetzel's Pretzels, LLC^*	One stop	L + 6.75%	^(a)	9.15%	09/2021	8,849		8,762			0.9		8,849
Wetzel's Pretzels, LLC	One stop	L + 6.75%	^(a)	9.15%	09/2021	28		28			—		28
						31,674		31,315			3.0		31,502
Printing and Publishing
Brandmuscle, Inc.^{^}	Senior loan	L + 5.00%	^(c)	7.33%	12/2021	613		610			0.1		616
Messenger, LLC	One stop	L + 6.00%	^(a)(f)	8.41%	08/2023	3,393		3,336			0.4		3,393
Messenger, LLC	One stop	P + 5.00%	^(f)	10.50%	08/2023	20		20			—		20
						4,026		3,966			0.5		4,029
Retail Stores
Batteries Plus Holding Corporation	One stop	L + 6.75%	^(a)	9.15%	07/2022	11,841		11,687			1.2		11,841
Batteries Plus Holding Corporation⁽⁵⁾	One stop	L + 6.75%		N/A⁽⁶⁾	07/2022	—		(1		)	—		—
Boot Barn, Inc.^~	Senior loan	L + 4.50%	^(c)	6.83%	06/2023	3,408		3,391			0.4		3,408
Cycle Gear, Inc.^{^}	One stop	L + 5.00%	^(c)	7.59%	01/2021	10,330		10,217			1.1		10,330
Cycle Gear, Inc.^{^}	One stop	L + 5.00%	^(c)	7.59%	01/2021	598		597			0.1		598
DTLR, Inc.^{^*}	One stop	L + 6.50%	^(c)	9.08%	08/2022	22,559		22,344			2.3		22,559
Elite Sportswear, L.P.	Senior loan	L + 6.25%	^(c)	8.58%	12/2021	6,315		6,252			0.6		6,188
Elite Sportswear, L.P.	Senior loan	L + 6.25%	^(c)	8.58%	12/2021	2,539		2,514			0.3		2,488
Elite Sportswear, L.P.	Senior loan	L + 6.25%	^(c)	8.58%	12/2021	1,306		1,296			0.1		1,280
Elite Sportswear, L.P.	Senior loan	L + 6.25%	^(c)(d)	8.89%	12/2021	768		764			0.1		753
Elite Sportswear, L.P.^*	Senior loan	L + 6.25%	^(c)	8.58%	12/2021	428		426			0.1		420
Elite Sportswear, L.P.	Senior loan	L + 6.25%	^(c)	8.58%	12/2021	198		196			—		194
Elite Sportswear, L.P.^*	Senior loan	L + 6.25%	^(c)	8.58%	12/2021	189		188			—		185
Elite Sportswear, L.P.	Senior loan	L + 6.25%	^(c)(d)	8.89%	12/2021	20		20			—		20
Feeders Supply Company, LLC	One stop	L + 5.75%	^(a)	8.15%	04/2021	4,669		4,631			0.5		4,669
Feeders Supply Company, LLC	Subordinated debt	N/A		12.50% cash/7.00% PIK	04/2021	70		70			—		70
Feeders Supply Company, LLC	One stop	L + 5.75%		N/A⁽⁶⁾	04/2021	—		—			—		—
Jet Equipment & Tools Ltd.^~(8)(9)(12)	One stop	L + 5.75%	^(a)	7.71%	11/2024	8,590		8,494			0.9		8,584
Jet Equipment & Tools Ltd.^*(8)(12)	One stop	L + 5.75%	^(a)	8.15%	11/2024	4,988		4,941			0.5		4,988
Jet Equipment & Tools Ltd.^~(8)(12)	One stop	L + 5.75%	^(a)	8.15%	11/2024	2,046		2,027			0.2		2,046
Jet Equipment & Tools Ltd.^(8)(12)	One stop	P + 4.75%	^(f)	10.25%	11/2024	15		15			—		15
Jet Equipment & Tools Ltd.^{(5)(8)(9)(12)}	One stop	L + 5.75%		N/A⁽⁶⁾	11/2024	—		(1		)	—		—
Marshall Retail Group LLC, The^{^*}	One stop	L + 6.00%	^(c)	8.59%	08/2020	11,865		11,836			1.2		11,865
Marshall Retail Group LLC, The⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	08/2019	—		(1		)	—		—
Mills Fleet Farm Group LLC^{^*~}	One stop	L + 6.25%	^(a)	8.65%	10/2024	6,739		6,648			0.7		6,739

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Retail stores - (continued)
Pet Holdings ULC^{^*~(8)(12)}	One stop	L + 5.50%	^(c)	8.09%	07/2022	$	14,666	$	14,480		1.5	%	$	14,666
Pet Holdings ULC^{^*(8)(12)}	One stop	L + 5.50%	^(c)	8.09%	07/2022	99		97			—		99
Pet Holdings ULC^(5)(8)(12)	One stop	L + 5.50%		N/A⁽⁶⁾	07/2022	—		(2		)	—		—
Pet Supplies Plus, LLC^*	Senior loan	L + 4.50%	^(a)	6.91%	12/2024	6,722		6,661			0.7		6,722
Pet Supplies Plus, LLC⁽⁵⁾	Senior loan	L + 4.50%		N/A⁽⁶⁾	12/2023	—		(1		)	—		—
PetPeople Enterprises, LLC^{^}	One stop	L + 5.00%	^(c)	7.33%	09/2023	3,090		3,063			0.3		3,090
PetPeople Enterprises, LLC	One stop	L + 5.00%	^(c)	7.33%	09/2023	60		59			—		60
PetPeople Enterprises, LLC	One stop	L + 5.00%	^(c)	7.33%	09/2023	15		15			—		15
Sola Franchise, LLC and Sola Salon Studios, LLC	One stop	L + 5.25%	^(c)	7.58%	10/2024	4,831		4,746			0.5		4,831
Sola Franchise, LLC and Sola Salon Studios, LLC	One stop	L + 5.25%	^(c)	7.58%	10/2024	120		119			—		120
Sola Franchise, LLC and Sola Salon Studios, LLC	One stop	L + 5.25%		N/A⁽⁶⁾	10/2024	—		—			—		—
Sola Franchise, LLC and Sola Salon Studios, LLC⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	10/2024	—		(1		)	—		—
Vermont Aus Pty Ltd^~(8)(9)(11)	One stop	L + 5.75%	^(k)	7.00%	12/2024	1,179		1,155			0.1		1,170
Vermont Aus Pty Ltd^{(5)(8)(9)(11)}	One stop	L + 5.75%		N/A⁽⁶⁾	12/2024	—		(1		)	—		(1		)
						130,263		128,941			13.4		130,012
Telecommunications
NetMotion Wireless Holdings, Inc.^{^*}	One stop	L + 6.25%	^(c)	8.58%	10/2021	5,837		5,776			0.6		5,837
NetMotion Wireless Holdings, Inc.	One stop	L + 6.25%		N/A⁽⁶⁾	10/2021	—		—			—		—
						5,837		5,776			0.6		5,837
Textile and Leather
SHO Holding I Corporation^~	Senior loan	L + 5.00%	^(c)	7.58%	10/2022	2,193		2,170			0.2		2,150
SHO Holding I Corporation	Senior loan	L + 4.00%	^(c)	6.60%	10/2021	15		15			—		13
						2,208		2,185			0.2		2,163
Utilities
Arcos, LLC^~	One stop	L + 5.75%	^(c)	8.08%	02/2021	8,471		8,404			0.9		8,471
Arcos, LLC	One stop	L + 5.75%		N/A⁽⁶⁾	02/2021	—		—			—		—
						8,471		8,404			0.9		8,471
Total non-controlled/non-affiliate company debt investments						$	1,820,673	$	1,799,763		185.7	%	$	1,798,361

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾	Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾	Amortized Cost		Percentage of Net Assets		Fair Value ⁽⁴⁾
Equity Investments^(14)(15)
Aerospace and Defense
NTS Technical Systems	Common stock	N/A	N/A	N/A	2	$	1,506	0.1	%	$	527
NTS Technical Systems	Preferred stock	N/A	N/A	N/A	—	256		0.1		364
NTS Technical Systems	Preferred stock	N/A	N/A	N/A	—	128		—		204
Tresys Technology Holdings, Inc.	Common stock	N/A	N/A	N/A	295	295		—		—
Whitcraft LLC	Common stock	N/A	N/A	N/A	4	375		0.1		760
						2,560		0.3		1,855
Automobile
Grease Monkey International, LLC	LLC units	N/A	N/A	N/A	354	354		0.1		694
Polk Acquisition Corp.	LP interest	N/A	N/A	N/A	1	144		—		64
Quick Quack Car Wash Holdings, LLC	LLC units	N/A	N/A	N/A	—	207		—		207
						705		0.1		965
Beverage, Food and Tobacco
Benihana, Inc.	LLC units	N/A	N/A	N/A	43	699		0.1		1,013
C. J. Foods, Inc.	Preferred stock	N/A	N/A	N/A	—	75		0.1		591
Cafe Rio Holding, Inc.	Common stock	N/A	N/A	N/A	2	224		—		285
Global ID Corporation	LLC interest	N/A	N/A	N/A	2	242		—		349
Hopdoddy Holdings, LLC	LLC units	N/A	N/A	N/A	27	130		—		128
Hopdoddy Holdings, LLC	LLC units	N/A	N/A	N/A	12	36		—		36
Mendocino Farms, LLC	Common stock	N/A	N/A	N/A	11	50		—		48
Purfoods, LLC	LLC interest	N/A	N/A	N/A	381	381		0.1		709
Rubio's Restaurants, Inc.	Preferred stock	N/A	N/A	N/A	2	945		0.1		926
Wood Fired Holding Corp.	LLC units	N/A	N/A	N/A	205	205		—		210
Wood Fired Holding Corp.	LLC units	N/A	N/A	N/A	205	—		—		—
						2,987		0.4		4,295
Buildings and Real Estate
Brooks Equipment Company, LLC	Common stock	N/A	N/A	N/A	10	1,021		0.2		2,345

Chemicals, Plastics and Rubber
Flexan, LLC	Common stock	N/A	N/A	N/A	1	—		—		—
Flexan, LLC	Preferred stock	N/A	N/A	N/A	—	90		—		90
Inhance Technologies Holdings LLC	LLC units	N/A	N/A	N/A	—	70		—		62
						160		—		152
Diversified/Conglomerate Manufacturing
Inventus Power, Inc.	LLC units	N/A	N/A	N/A	—	54		—		23
Inventus Power, Inc.	Preferred stock	N/A	N/A	N/A	—	5		—		18
Inventus Power, Inc.	Preferred stock	N/A	N/A	N/A	—	370		—		3
Inventus Power, Inc.	Common stock	N/A	N/A	N/A	—	—		—		—
Reladyne, Inc.	LP interest	N/A	N/A	N/A	—	272		0.1		626
Sunless Merger Sub, Inc.	LP interest	N/A	N/A	N/A	160	160		—		—
						861		0.1		670

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾	Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾	Amortized Cost		Percentage of Net Assets		Fair Value ⁽⁴⁾
Diversified/Conglomerate Service
Accela, Inc.	LLC units	N/A	N/A	N/A	296	$	296	—	%	$	156
Agility Recovery Solutions Inc.	Preferred stock	N/A	N/A	N/A	67	341		0.1		519
Astute Holdings, Inc.	LP interest	N/A	N/A	N/A	—	103		—		103
Calabrio, Inc.	Common stock	N/A	N/A	N/A	13	100		—		100
Caliper Software, Inc.	Common stock	N/A	N/A	N/A	104	104		—		162
Caliper Software, Inc.	Preferred stock	N/A	N/A	N/A	1	1,172		0.1		1,310
Caliper Software, Inc.	Preferred stock	N/A	N/A	N/A	—	16		—		17
Centrify Corporation	LP interest	N/A	N/A	N/A	123	—		—		—
Centrify Corporation	LP interest	N/A	N/A	N/A	—	348		—		316
Cloudbees, Inc.	Preferred stock	N/A	N/A	N/A	33	207		—		223
Cloudbees, Inc.	Warrant	N/A	N/A	N/A	29	39		—		91
Confluence Technologies, Inc.	LLC interest	N/A	N/A	N/A	1	87		—		143
Connexin Software, Inc.	LLC interest	N/A	N/A	N/A	69	69		—		103
Digital Guardian, Inc.	Preferred stock	N/A	N/A	N/A	1,632	196		—		184
Digital Guardian, Inc.	Warrant	N/A	N/A	N/A	558	96		—		112
Digital Guardian, Inc.	Preferred stock	N/A	N/A	N/A	338	61		—		69
Digital Guardian, Inc.	Warrant	N/A	N/A	N/A	57	10		—		13
DISA Holdings Acquisition Subsidiary Corp.	Common stock	N/A	N/A	N/A	—	154		—		314
GS Acquisitionco, Inc.	LP interest	N/A	N/A	N/A	1	98		0.1		386
HealthcareSource HR, Inc.	LLC interest	N/A	N/A	N/A	—	348		0.1		531
Hydraulic Authority III Limited^(8)(9)(10)	Preferred stock	N/A	N/A	N/A	133	170		—		180
Hydraulic Authority III Limited^(8)(9)(10)	Common stock	N/A	N/A	N/A	3	—		—		56
Internet Truckstop Group LLC	LP interest	N/A	N/A	N/A	88	88		—		88
Kareo, Inc.	Warrant	N/A	N/A	N/A	23	160		—		2
Kareo, Inc.	Warrant	N/A	N/A	N/A	2	—		—		6
Kareo, Inc.	Preferred stock	N/A	N/A	N/A	1	4		—		4
Maverick Bidco Inc.	LLC units	N/A	N/A	N/A	1	369		—		212
MetricStream, Inc.	Warrant	N/A	N/A	N/A	74	113		—		113
MMan Acquisition Co.	Common stock	N/A	N/A	N/A	—	19		0.1		761
Namely, Inc.	Warrant	N/A	N/A	N/A	5	8		—		8
Net Health Acquisition Corp.	LP interest	N/A	N/A	N/A	—	346		0.1		473
Nexus Brands Group, Inc.	LP interest	N/A	N/A	N/A	—	187		—		209
Personify, Inc.	LLC units	N/A	N/A	N/A	297	297		0.1		419
Pride Midco, Inc.	Preferred stock	N/A	N/A	N/A	1	1,107		0.1		1,219
Project Alpha Intermediate Holding, Inc.	Common stock	N/A	N/A	N/A	103	4		—		244
Project Alpha Intermediate Holding, Inc.	Common stock	N/A	N/A	N/A	—	417		0.1		535
Property Brands, Inc.	LLC units	N/A	N/A	N/A	28	284		0.1		378
RegEd Aquireco, LLC	LP interest	N/A	N/A	N/A	1	—		—		2
RegEd Aquireco, LLC	LP interest	N/A	N/A	N/A	—	138		—		146
Vendavo, Inc.	Preferred stock	N/A	N/A	N/A	1,017	1,017		0.2		1,713
Verisys Corporation	LLC interest	N/A	N/A	N/A	261	261		—		218
Vitalyst, LLC	Common stock	N/A	N/A	N/A	1	7		—		—
Vitalyst, LLC	Preferred stock	N/A	N/A	N/A	—	61		—		79
Workforce Software, LLC	LLC units	N/A	N/A	N/A	323	323		0.1		502
Xmatters, Inc. and Alarmpoint, Inc.	Preferred stock	N/A	N/A	N/A	242	221		—		258
Xmatters, Inc. and Alarmpoint, Inc.	Warrant	N/A	N/A	N/A	43	34		—		14
Xmatters, Inc. and Alarmpoint, Inc.	Preferred stock	N/A	N/A	N/A	10	10		—		15
						9,490		1.3		12,706

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾	Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾	Amortized Cost		Percentage of Net Assets		Fair Value ⁽⁴⁾
Ecological
Pace Analytical Services, LLC	Common stock	N/A	N/A	N/A	3	$	304	—	%	$	340

Electronics
Appriss Holdings, Inc.	Preferred stock	N/A	N/A	N/A	—	25		—		25
Diligent Corporation	Preferred stock	N/A	N/A	N/A	56	1		—		245
Episerver, Inc.	Common stock	N/A	N/A	N/A	35	354		0.1		390
Project Silverback Holdings Corp.	Preferred stock	N/A	N/A	N/A	3	6		—		—
SEI, Inc.	LLC units	N/A	N/A	N/A	340	265		0.1		755
Silver Peak Systems, Inc.	Warrant	N/A	N/A	N/A	21	8		—		8
Sloan Company, Inc., The	LLC units	N/A	N/A	N/A	2	14		—		—
Sloan Company, Inc., The	LLC units	N/A	N/A	N/A	—	152		—		—
						825		0.2		1,423
Healthcare, Education and Childcare
Active Day, Inc.	LLC interest	N/A	N/A	N/A	1	614		—		336
Acuity Eyecare Holdings, LLC	LLC interest	N/A	N/A	N/A	362	387		0.1		384
ADCS Clinics Intermediate Holdings, LLC	Preferred stock	N/A	N/A	N/A	1	579		0.1		480
ADCS Clinics Intermediate Holdings, LLC	Common stock	N/A	N/A	N/A	—	6		—		—
Aris Teleradiology Company, LLC	Preferred stock	N/A	N/A	N/A	2	—		—		—
Aris Teleradiology Company, LLC	One stop	N/A	N/A	N/A	1	—		—		—
Aris Teleradiology Company, LLC	Common stock	N/A	N/A	N/A	—	—		—		—
Aspen Medical Products, LLC	Common stock	N/A	N/A	N/A	—	35		—		35
BIO18 Borrower, LLC	LLC interest	N/A	N/A	N/A	92	484		0.1		520
BIOVT, LLC	LLC units	N/A	N/A	N/A	—	407		0.1		805
CRH Healthcare Purchaser, Inc.	LP interest	N/A	N/A	N/A	201	201		—		213
DCA Investment Holding, LLC	LLC units	N/A	N/A	N/A	8,637	864		0.1		1,164
DCA Investment Holding, LLC	LLC units	N/A	N/A	N/A	87	9		—		305
Deca Dental Management LLC	LLC units	N/A	N/A	N/A	357	357		0.1		507
Dental Holdings Corporation	LLC units	N/A	N/A	N/A	883	831		—		354
Elite Dental Partners LLC	Common stock	N/A	N/A	N/A	—	360		0.1		453
Encore GC Acquisition, LLC	LLC units	N/A	N/A	N/A	18	182		—		188
Encore GC Acquisition, LLC	LLC units	N/A	N/A	N/A	18	—		—		87
ERG Buyer, LLC	LLC units	N/A	N/A	N/A	4	4		—		—
ERG Buyer, LLC	LLC units	N/A	N/A	N/A	—	370		—		195
Eyecare Services Partners Holdings LLC	LLC units	N/A	N/A	N/A	—	133		—		70
Eyecare Services Partners Holdings LLC	LLC units	N/A	N/A	N/A	—	1		—		—
G & H Wire Company, Inc.	LLC interest	N/A	N/A	N/A	148	148		—		91
IntegraMed America, Inc.	LLC interest	N/A	N/A	N/A	—	417		—		122
Katena Holdings, Inc.	LLC units	N/A	N/A	N/A	—	387		—		350
Krueger-Gilbert Health Physics, LLC	LLC interest	N/A	N/A	N/A	54	54		—		54
Lombart Brothers, Inc.	Common stock	N/A	N/A	N/A	1	157		—		332
MD Now Holdings, Inc.	LLC units	N/A	N/A	N/A	7	68		—		74
MWD Management, LLC & MWD Services, Inc.	LLC interest	N/A	N/A	N/A	182	182		—		100
Oliver Street Dermatology Holdings, LLC	LLC units	N/A	N/A	N/A	234	234		—		—
Pentec Acquisition Sub, Inc.	Preferred stock	N/A	N/A	N/A	1	116		—		99
Pinnacle Treatment Centers, Inc.	Common stock	N/A	N/A	N/A	2	2		—		100
Pinnacle Treatment Centers, Inc.	Preferred stock	N/A	N/A	N/A	—	231		—		284
Radiology Partners, Inc.	LLC units	N/A	N/A	N/A	43	85		—		235

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾	Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾	Amortized Cost		Percentage of Net Assets		Fair Value ⁽⁴⁾
Healthcare, Education, and Childcare - (continued)
Radiology Partners, Inc.	LLC units	N/A	N/A	N/A	11	$	76	—	%	$	59
RXH Buyer Corporation	LP interest	N/A	N/A	N/A	7	683		0.1		468
Sage Dental Management, LLC	LLC units	N/A	N/A	N/A	3	3		—		—
Sage Dental Management, LLC	LLC units	N/A	N/A	N/A	—	249		—		10
SLMP, LLC	LLC interest	N/A	N/A	N/A	289	290		—		356
Spear Education, LLC	LLC units	N/A	N/A	N/A	1	1		—		36
Spear Education, LLC	LLC units	N/A	N/A	N/A	—	62		—		80
SSH Corporation	Common stock	N/A	N/A	N/A	—	40		—		178
Summit Behavioral Healthcare, LLC	LLC interest	N/A	N/A	N/A	1	68		—		33
Summit Behavioral Healthcare, LLC	LLC interest	N/A	N/A	N/A	1	—		—		—
Surgical Information Systems, LLC	Common stock	N/A	N/A	N/A	4	414		0.1		459
WHCG Management, LLC	LLC interest	N/A	N/A	N/A	—	246		—		66
						10,037		0.9		9,682
Insurance
Captive Resources Midco, LLC⁽¹⁶⁾	LLC units	N/A	N/A	N/A	1	—		0.1		388
Internet Pipeline, Inc.	Common stock	N/A	N/A	N/A	44	1		—		246
Internet Pipeline, Inc.	Preferred stock	N/A	N/A	N/A	—	72		—		109
Orchid Underwriters Agency, LLC	LP interest	N/A	N/A	N/A	37	37		—		41
						110		0.1		784
Leisure, Amusement, Motion Pictures, Entertainment
LMP TR Holdings, LLC	LLC units	N/A	N/A	N/A	712	712		0.1		1,002
PADI Holdco, Inc.	LLC units	N/A	N/A	N/A	—	414		0.1		466
WBZ Investment LLC	LLC interest	N/A	N/A	N/A	31	49		—		50
WBZ Investment LLC	LLC interest	N/A	N/A	N/A	21	33		—		34
WBZ Investment LLC	LLC interest	N/A	N/A	N/A	18	27		—		28
WBZ Investment LLC	LLC interest	N/A	N/A	N/A	15	24		—		24
WBZ Investment LLC	LLC interest	N/A	N/A	N/A	7	10		—		10
WBZ Investment LLC	LLC interest	N/A	N/A	N/A	1	1		—		1
						1,270		0.2		1,615
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC⁽¹⁶⁾	LLC units	N/A	N/A	N/A	11	106		—		183
Massage Envy, LLC	LLC interest	N/A	N/A	N/A	749	210		0.2		1,741
						316		0.2		1,924
Personal, Food and Miscellaneous Services
Captain D's, LLC	LLC interest	N/A	N/A	N/A	70	70		—		48
Community Veterinary Partners, LLC	Common stock	N/A	N/A	N/A	2	244		—		344
PPV Intermediate Holdings II, LLC	LLC interest	N/A	N/A	N/A	13	13		—		13
R.G. Barry Corporation	Preferred stock	N/A	N/A	N/A	—	161		—		135
Ruby Slipper Cafe LLC, The	LLC units	N/A	N/A	N/A	12	124		—		157
Southern Veterinary Partners, LLC	LLC units	N/A	N/A	N/A	64	2		—		72
Southern Veterinary Partners, LLC	LLC units	N/A	N/A	N/A	—	216		0.1		358
Wetzel's Pretzels, LLC	Common stock	N/A	N/A	N/A	—	160		—		250
						990		0.1		1,377
Printing and Publishing
Brandmuscle, Inc.	LLC interest	N/A	N/A	N/A	—	240		—		93

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost		Percentage of Net Assets		Fair Value ⁽⁴⁾
Retail Stores
Batteries Plus Holding Corporation	LP interest	N/A		N/A	N/A	5		$	529	0.1	%	$	783
Cycle Gear, Inc.	LLC units	N/A		N/A	N/A	19		248		0.1		405
DTLR, Inc.	LLC interest	N/A		N/A	N/A	4		411		0.1		821
Elite Sportswear, L.P.	LLC interest	N/A		N/A	N/A	—		165		—		—
Feeders Supply Company, LLC	Preferred stock	N/A		N/A	N/A	2		192		—		199
Feeders Supply Company, LLC	Common stock	N/A		N/A	N/A	—		—		—		—
Jet Equipment & Tools Ltd.^(8)(9)(12)	LLC units	N/A		N/A	N/A	—		339		0.1		536
Marshall Retail Group LLC, The	LLC units	N/A		N/A	N/A	15		154		—		138
Paper Source, Inc.	Common stock	N/A		N/A	N/A	8		1,387		0.1		499
Pet Holdings ULC^(8)(12)	LP interest	N/A		N/A	N/A	455		386		—		177
Pet Supplies Plus, LLC	LLC units	N/A		N/A	N/A	67		67		—		92
Sola Franchise, LLC and Sola Salon Studios, LLC	LLC units	N/A		N/A	N/A	2		180		—		259
Sola Franchise, LLC and Sola Salon Studios, LLC	LLC units	N/A		N/A	N/A	—		36		—		54
								4,094		0.5		3,963

Total non-controlled/non-affiliate company equity investments								$	35,970	4.6	%	$	44,189

Total non-controlled/non-affiliate company investments						$	1,820,673	$	1,835,733	190.3	%	$	1,842,550

Non-controlled affiliate company investments⁽¹⁷⁾
Debt investments
Beverage, Food and Tobacco
Uinta Brewing Company⁽⁷⁾⁽⁸⁾	One stop	L + 4.00%	^(a)	6.40%	08/2021	154		$	154	—	%	$	134
Uinta Brewing Company^{^(7)(8)}	One stop	L + 4.00%	^(a)	6.40%	08/2021	771		768		0.1		628
						925		922		0.1		762
Diversified/Conglomerate Service
Switchfly LLC⁽⁸⁾	One stop	L + 3.00%	^(c)	5.59%	10/2023	2,296		2,251		0.2		2,066
Switchfly LLC⁽⁸⁾	One stop	L + 3.00%	^(c)	5.59%	10/2023	192		189		—		173
Switchfly LLC⁽⁸⁾	One stop	L + 3.00%	^(c)	5.59%	10/2023	17		17		—		15
Switchfly LLC⁽⁸⁾	One stop	L + 8.50%		N/A⁽⁶⁾	10/2023	—		—		—		—
						2,505		2,457		0.2		2,254
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc.⁽⁸⁾	One stop	L + 11.00%	^(a)	11.40% cash/2.00% PIK	05/2020	4,118		4,118		0.4		3,912
Benetech, Inc.⁽⁸⁾	One stop	P + 9.75%	^(a)(f)	13.07% cash/2.00% PIK	05/2020	452		452		0.1		395
						4,570		4,570		0.5		4,307

Total non-controlled affiliate company debt investments						$	8,000	$	7,949	0.8	%	$	7,323

Equity Investments ^(14)(15)
Beverage, Food and Tobacco
Uinta Brewing Company⁽⁸⁾	Common stock	N/A		N/A	N/A	123		$	—	—	%	$	130
Uinta Brewing Company⁽⁸⁾	LP interest	N/A		N/A	N/A	462		462		—		—
								462		—		130
Diversified/Conglomerate Service
Switchfly LLC⁽⁸⁾	LLC units	N/A		N/A	N/A	1,467		815		0.1		1,068

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾	Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost		Percentage of Net Assets		Fair Value ⁽⁴⁾
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc.⁽⁸⁾	LLC interest	N/A	N/A	N/A	56		$	—	—	%	$	8
Benetech, Inc.⁽⁸⁾	LLC interest	N/A	N/A	N/A	56		—		—		—
							—		—		8

Total non-controlled affiliate company equity investments							$	1,277	0.1	%	$	1,206

Total non-controlled affiliate company investments					$	8,000	$	9,226	0.9	%	$	8,529

Controlled affiliate company investments⁽¹⁸⁾
Equity Investments^(14)(15)
Investment Funds and Vehicles
Senior Loan Fund LLC^(8)(19)	LLC interest	N/A	N/A	N/A	74,882		$	74,882	7.4	%	$	71,742

Total controlled affiliate company equity investments							$	74,882	7.4	%	$	71,742

Total investments					$	1,828,673	$	1,919,841	198.6	%	$	1,922,821

Cash and cash equivalents, foreign currencies, restricted cash and cash equivalents, and restricted foreign currencies
Cash, foreign currencies, restricted cash and restricted foreign currencies							$	85,070	8.8	%	$	85,070
BlackRock Liquidity Funds T-Fund Institutional Shares (CUSIP 09248U718)			2.25% ⁽²⁰⁾				25,584		2.6		25,584
Total cash and cash equivalents, foreign currencies, restricted cash and cash equivalents, and restricted foreign currencies							$	110,654	11.4	%	$	110,654

Total investments and cash and cash equivalents, foreign currencies, restricted cash and cash equivalents and restricted foreign currencies							$	2,030,495	210.0	%	$	2,033,475



^{^}		Denotes that all or a portion of the loan secures the notes offered in the 2014 Debt Securitization (as defined in Note 6).
^*		Denotes that all or a portion of the loan secures the notes offered in the 2018 Debt Securitization (as defined in Note 6).
^~		Denotes that all or a portion of the loan collateralizes the MS Credit Facility II (as defined in Note 6).

⁽¹⁾

The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate ("LIBOR" or "L"), Euro Interbank Offered Rate ("EURIBOR" or "E") or Prime ("P") and which reset daily, monthly, quarterly, semiannually, or annually. For each, the Company has provided the spread over LIBOR, EURIBOR or Prime and the weighted average current interest rate in effect as of June 30, 2019. Certain investments are subject to a LIBOR, EURIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable. Listed below are the index rates as of June 28, 2019, which was the last business day of the period on which LIBOR or EURIBOR was determined. The actual index rate for each loan listed may not be the applicable index rate outstanding as of June 28, 2019, as the loan may have priced or repriced based on an index rate prior to June 28, 2019.

^(a) Denotes that all or a portion of the loan was indexed to the 30-day LIBOR, which was 2.39% as of June 28, 2019.

^(b) Denotes that all or a portion of the loan was indexed to the 60-day LIBOR, which was 2.33% as of June 28, 2019.

^(c) Denotes that all or a portion of the loan was indexed to the 90-day LIBOR, which was 2.32% as of June 28, 2019.

^(d) Denotes that all or a portion of the loan was indexed to the 180-day LIBOR, which was 2.20% as of June 28, 2019.

^(e) Denotes that all or a portion of the loan was indexed to the 360-day LIBOR, which was 2.18% as of June 28, 2019.

^(f) Denotes that all or a portion of the loan was indexed to the Prime rate, which was 5.50% as of June 28, 2019.

^(g)Denotes that all or a portion of the loan was indexed to the 90-day EURIBOR, which was -0.39% as of June 28, 2019.

^(h)Denotes that all or a portion of the loan was indexed to the 30-day GBP LIBOR, which was 0.72% as of June 28, 2019.

⁽ⁱ⁾Denotes that all or a portion of the loan was indexed to the 90-day GBP LIBOR, which was 0.77% as of June 28, 2019.

^(j)Denotes that all or a portion of the loan was indexed to the 180-day GBP LIBOR, which was 0.85% as of June 28, 2019.

^(k)Denotes that all or a portion of the loan was indexed to the Australia Three Month Interbank Rate, which was 1.25% as of June 28, 2019.


⁽²⁾	For portfolio companies with multiple interest rate contracts, the interest rate shown is a weighted average current interest rate in effect as of June 30, 2019.

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments (unaudited) - (continued)

June 30, 2019

(In thousands)


⁽³⁾	The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.


⁽⁴⁾	The fair value of the investment was valued using significant unobservable inputs. See Note 5. Fair Value Measurements.


⁽⁵⁾	The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par. The negative amortized cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.


⁽⁶⁾	The entire commitment was unfunded as of June 30, 2019. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.


⁽⁷⁾	Loan was on non-accrual status as of June 30, 2019, meaning that the Company has ceased recognizing interest income on the loan.

⁽⁸⁾

The investment is treated as a non-qualifying asset under Section 55(a) of the Investment Company Act of 1940, as amended (the “1940 Act”). Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of June 30, 2019, total non-qualifying assets at fair value represented 7.6% of the Company's total assets calculated in accordance with the 1940 Act.


⁽⁹⁾	Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date or the date of the transaction. See Note 2. Significant Accounting Policies and Recent Accounting Updates - Foreign Currency Transactions.


⁽¹⁰⁾	The headquarters of this portfolio company is located in the United Kingdom.


⁽¹¹⁾	The headquarters of this portfolio company is located in Australia.


⁽¹²⁾	The headquarters of this portfolio company is located in Canada.


⁽¹³⁾	The sale of a portion of this loan does not qualify for sale accounting under ASC Topic 860 - Transfers and Servicing ("ASC Topic 860"), and therefore, the asset remains in the Consolidated Schedule of Investments. See Note 6. Borrowings.


⁽¹⁴⁾	Equity investments are non-income producing securities unless otherwise noted.


⁽¹⁵⁾	Ownership of certain equity investments may occur through a holding company or partnership.


⁽¹⁶⁾	The Company holds an equity investment that entitles it to receive preferential dividends.

⁽¹⁷⁾As defined in the 1940 Act, the Company is deemed to be an "affiliated person" of the portfolio company as the Company owns five percent or more of the portfolio company's voting securities ("non-controlled affiliate"). Transactions related to investments in non-controlled affiliates for the nine months ended June 30, 2019 were as follows:



Portfolio Company	Fair value as of September 30, 2018		Purchases (cost)^(l)		Redemptions (cost)			Transfer in (out)		Discount accretion			Net change in unrealized gain/(loss)			Fair value as of June 30, 2019		Net realized gain/(loss)		Interest and fee income		Dividend income
Benetech, Inc.	$	4,496	$	287	$	(197	)	$	—	$	2		$	(273	)	$	4,315	$	—	$	456	$	—
Switchfly LLC	2,788		407		—			—		(9		)	136			3,322		—		96		—
Uinta Brewing Company^(m)	—		—		—			1,384		—			(492		)	892		—		—		—
Total Non-Controlled Affiliates	$	7,284	$	694	$	(197	)	$	1,384	$	(7	)	$	(629	)	$	8,529	$	—	$	552	$	—



^(l)	Purchases at cost includes amounts related to payment-in-kind ("PIK") interest capitalized and added to the principal balance of the respective loans.
^(m)	During the three months ended March 31, 2019, the Company's ownership increased to over five percent of the portfolio company's voting securities.

⁽¹⁸⁾As defined in the 1940 Act, the Company is deemed to be both an "affiliated person" of and "control" this portfolio company as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement) ("controlled affiliate"). Transactions related to investments in controlled affiliates for the nine months ended June 30, 2019 were as follows:



Portfolio Company	Fair value as of September 30, 2018		Purchases (cost)		Redemptions (cost)			Transfer in (out)		Discount accretion		Net change in unrealized gain/(loss)		Fair value as of June 30, 2019		Net realized gain/(loss)		Interest and fee income		Dividend income
Senior Loan Fund LLC⁽ⁿ⁾	$	71,084	$	1,750	$	(2,275	)	$	—	$	—	$	1,183	$	71,742	$	—	$	—	$	—
Total Controlled Affiliates	$	71,084	$	1,750	$	(2,275	)	$	—	$	—	$	1,183	$	71,742	$	—	$	—	$	—



⁽ⁿ⁾	Together with RGA Reinsurance Company ("RGA"), the Company co-invests through Senior Loan Fund LLC ("SLF"). SLF is capitalized as transactions are completed and all portfolio and investment decisions in respect to SLF must be approved by the SLF investment committee consisting of two representatives of the Company and RGA (with unanimous approval required from (i) one representative of each of the Company and RGA or (ii) both representatives of each of the Company and RGA). Therefore, although the Company owns more than 25% of the voting securities of SLF, the Company does not have sole control over significant actions of SLF for purposes of the 1940 Act or otherwise.


⁽¹⁹⁾	The Company generally receives quarterly profit distributions from its equity investment in SLF. For each of the three and nine months ended June 30, 2019, the Company did not receive a profit distribution from its equity investment in SLF. See Note 4. Investments.


⁽²⁰⁾	The rate shown is the annualized seven-day yield as of June 28, 2019.

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Investments
Non-controlled/non-affiliate company investments
Debt investments
Aerospace and Defense
ILC Dover, LP	Senior loan	L + 4.75%	^(c)	7.14%	12/2023	$	9,928	$	9,841		1.0	%	$	9,928
NTS Technical Systems*^	One stop	L + 6.25%	^(a)	8.36%	06/2021	21,718		21,508			2.2		21,718
NTS Technical Systems⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	06/2021	—		(53		)	—		—
Tresys Technology Holdings, Inc^.(7)	One stop	L + 6.75%	^(a)	8.99%	12/2018	3,899		3,845			0.1		780
Tresys Technology Holdings, Inc.⁽⁷⁾	One stop	L + 6.75%	^(a)	8.99%	12/2018	659		658			0.1		659
Tronair Parent, Inc.^	Senior loan	L + 4.75%	^(c)	7.56%	09/2023	366		363			0.1		366
Tronair Parent, Inc.	Senior loan	L + 4.50%	^(a)(b)(c)(f)	7.03%	09/2021	80		79			—		80
Whitcraft LLC*^	One stop	L + 6.25%	^(c)	8.64%	04/2023	12,439		12,298			1.3		12,439
Whitcraft LLC^	One stop	L + 6.25%	^(c)	8.64%	04/2023	194		192			—		194
Whitcraft LLC⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	04/2023	—		(1		)	—		—
Whitcraft LLC⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	04/2023	—		(2		)	—		—
						49,283		48,728			4.8		46,164
Automobile
Dent Wizard International Corporation*	Senior loan	L + 4.00%	^(a)	6.23%	04/2020	4,477		4,463			0.5		4,477
Grease Monkey International, LLC*^	Senior loan	L + 5.00%	^(a)	7.24%	11/2022	4,863		4,813			0.5		4,808
Grease Monkey International, LLC	Senior loan	L + 5.00%	^(a)	7.24%	11/2022	76		75			—		75
Grease Monkey International, LLC	Senior loan	L + 5.00%	^(a)	7.24%	11/2022	27		25			—		25
Grease Monkey International, LLC	Senior loan	L + 5.00%	^(a)	7.24%	11/2022	21		20			—		20
Grease Monkey International, LLC⁽⁵⁾	Senior loan	L + 5.00%		N/A⁽⁶⁾	11/2022	—		(2		)	—		(2		)
Quick Quack Car Wash Holdings, LLC	One stop	L + 6.50%	^(a)	8.74%	04/2023	8,751		8,652			0.9		8,751
Quick Quack Car Wash Holdings, LLC	One stop	L + 6.50%	^(a)	8.67%	04/2023	150		148			—		150
Quick Quack Car Wash Holdings, LLC	One stop	L + 6.50%	^(a)	8.70%	04/2023	40		39			—		40
Quick Quack Car Wash Holdings, LLC⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	04/2023	—		(4		)	—		—
						18,405		18,229			1.9		18,344
Beverage, Food and Tobacco
Abita Brewing Co., L.L.C.	One stop	L + 5.75%	^(a)	7.99%	04/2021	6,998		6,926			0.7		6,998
Abita Brewing Co., L.L.C.	One stop	L + 5.75%		N/A⁽⁶⁾	04/2021	—		—			—		—
C. J. Foods, Inc.*^	One stop	L + 6.25%	^(c)	8.64%	05/2020	8,582		8,528			0.9		8,582
C. J. Foods, Inc.^	One stop	L + 6.25%	^(c)	8.64%	05/2020	649		647			0.1		649
C. J. Foods, Inc.	One stop	L + 6.25%	^(c)	8.58%	05/2020	517		514			0.1		517
Cafe Rio Holding, Inc.*^	One stop	L + 5.75%	^(a)	7.99%	09/2023	10,370		10,220			1.1		10,370
Cafe Rio Holding, Inc.	One stop	L + 5.75%	^(a)	7.99%	09/2023	80		79			—		80
Cafe Rio Holding, Inc.	One stop	L + 5.75%	^(a)	7.99%	09/2023	40		37			—		40
Cafe Rio Holding, Inc.	One stop	P + 4.75%	^(f)	10.00%	09/2023	10		8			—		10
Fintech Midco, LLC	One stop	L + 6.00%	^(a)	8.25%	08/2024	12,995		12,868			1.3		12,865
Fintech Midco, LLC⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	08/2024	—		(1		)	—		(1		)
Fintech Midco, LLC⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	08/2024	—		(2		)	—		(3		)
Firebirds International, LLC*	One stop	L + 5.75%	^(a)	7.89%	12/2018	1,049		1,048			0.1		1,049
Firebirds International, LLC*	One stop	L + 5.75%	^(a)	7.89%	12/2018	295		295			—		295
Firebirds International, LLC^	One stop	L + 5.75%	^(a)	7.89%	12/2018	95		95			—		95
Firebirds International, LLC	One stop	L + 5.75%	^(c)	7.99%	12/2018	41		41			—		41
Firebirds International, LLC	One stop	L + 5.75%		N/A⁽⁶⁾	12/2018	—		—			—		—
Flavor Producers, LLC	Senior loan	L + 4.75%	^(c)	7.13%	12/2023	2,155		2,127			0.2		2,155
Flavor Producers, LLC⁽⁵⁾	Senior loan	L + 4.75%		N/A⁽⁶⁾	12/2022	—		(1		)	—		—

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Beverage, Food and Tobacco - (continued)
FWR Holding Corporation^	One stop	L + 5.75%	^(a)	7.99%	08/2023	$	5,259	$	5,194		0.6	%	$	5,259
FWR Holding Corporation	One stop	L + 5.75%	^(a)	7.99%	08/2023	65		64			—		65
FWR Holding Corporation	One stop	L + 5.75%	^(a)(f)	8.80%	08/2023	42		41			—		42
FWR Holding Corporation⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	08/2023	—		(1		)	—		—
Global Franchise Group, LLC*	Senior loan	L + 5.75%	^(a)	7.99%	12/2019	3,220		3,203			0.3		3,220
Global Franchise Group, LLC	Senior loan	L + 5.75%		N/A⁽⁶⁾	12/2019	—		—			—		—
Global ID Corporation*	One stop	L + 6.50%	^(c)	8.84%	11/2021	5,144		5,104			0.5		5,144
Global ID Corporation	One stop	L + 6.50%	^(c)	8.84%	11/2021	72		71			—		72
Global ID Corporation	One stop	L + 6.50%		N/A⁽⁶⁾	11/2021	—		—			—		—
Global ID Corporation⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	11/2021	—		(1		)	—		—
Hopdoddy Holdings, LLC	One stop	L + 9.50%	^(c)	10.31% cash/1.50% PIK	08/2020	1,307		1,301			0.1		1,307
Hopdoddy Holdings, LLC	One stop	L + 9.50%	^(c)	10.34% cash/1.50% PIK	08/2020	47		47			—		47
Hopdoddy Holdings, LLC	One stop	L + 9.50%	^(c)	10.32% cash/1.50% PIK	08/2020	3		2			—		3
Mendocino Farms, LLC⁽⁵⁾	One stop	L + 8.50%		N/A⁽⁶⁾	06/2023	—		(2		)	—		—
Mid-America Pet Food, L.L.C.*^	One stop	L + 6.00%	^(c)	8.39%	12/2021	10,752		10,664			1.1		10,752
Mid-America Pet Food, L.L.C.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	12/2021	—		(1		)	—		—
NBC Intermediate, LLC^	Senior loan	L + 4.25%	^(a)	6.50%	09/2023	2,079		2,061			0.2		2,058
NBC Intermediate, LLC *	Senior loan	L + 4.25%	^(a)	6.50%	09/2023	1,097		1,086			0.1		1,086
NBC Intermediate, LLC	Senior loan	P + 3.25%	^(f)	8.50%	09/2023	5		4			—		4
Purfoods, LLC	One stop	L + 6.00%	^(c)	8.31%	05/2021	8,379		8,270			0.9		8,379
Purfoods, LLC	One stop	N/A		7.00% PIK	05/2026	116		116			—		116
Purfoods, LLC	One stop	L + 6.00%	^(a)	8.15%	05/2021	65		64			—		65
Purfoods, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2021	39		39			—		39
Purfoods, LLC	One stop	L + 6.00%	^(c)	8.39%	05/2021	30		30			—		30
Purfoods, LLC	One stop	L + 6.00%	^(c)	8.39%	05/2021	30		30			—		30
Purfoods, LLC	One stop	L + 6.00%	^(c)	8.33%	05/2021	30		30			—		30
Purfoods, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2021	24		23			—		24
Purfoods, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2021	15		15			—		15
Purfoods, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2021	15		15			—		15
Purfoods, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2021	14		14			—		14
Purfoods, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2021	11		11			—		11
Purfoods, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2021	11		11			—		11
Purfoods, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2021	10		10			—		10
Purfoods, LLC⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	05/2021	—		(1		)	—		—
Rubio's Restaurants, Inc.*^	Senior loan	L + 5.25%	^(c)	7.64%	10/2019	11,173		11,000			1.2		11,173
Uinta Brewing Company^⁽⁷⁾	One stop	L + 8.50%	^(a)	10.74%	08/2019	3,725		3,716			0.3		2,459
Uinta Brewing Company⁽⁷⁾	One stop	L + 8.50%	^(a)	10.74%	08/2019	693		691			0.1		444
						97,348		96,350			9.9		95,666
Broadcasting and Entertainment
TouchTunes Interactive Networks, Inc.^	Senior loan	L + 4.75%	^(a)	6.99%	05/2021	1,447		1,444			0.1		1,447

Buildings and Real Estate
Brooks Equipment Company, LLC*^	One stop	L + 5.00%	^(c)	7.31%	08/2020	21,096		20,996			2.2		21,096
Brooks Equipment Company, LLC*	One stop	L + 5.00%	^(b)(c)	7.28%	08/2020	2,634		2,623			0.3		2,634
Brooks Equipment Company, LLC⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	08/2020	—		(6		)	—		—
Jensen Hughes, Inc.	Senior loan	L + 4.50%	^(a)	6.71%	03/2024	500		498			0.1		500
Jensen Hughes, Inc.	Senior loan	L + 4.50%	^(a)	6.74%	03/2024	153		151			—		153

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Buildings and Real Estate - (continued)
Jensen Hughes, Inc.	Senior loan	L + 4.50%	^(a)	6.65%	03/2024	$	29	$	29		—	%	$	29
MRI Software LLC^	One stop	L + 5.50%	^(c)	7.89%	06/2023	23,684		23,156			2.4		23,684
MRI Software LLC*^	One stop	L + 5.50%	^(c)	7.89%	06/2023	13,744		13,614			1.4		13,744
MRI Software LLC^	One stop	L + 5.50%	^(c)	7.89%	06/2023	357		354			0.1		357
MRI Software LLC	One stop	L + 5.50%	^(c)	7.89%	06/2023	295		292			—		295
MRI Software LLC	One stop	L + 5.50%	^(c)	7.89%	06/2023	194		192			—		194
MRI Software LLC^	One stop	L + 5.50%	^(a)	7.65%	06/2023	165		163			—		165
MRI Software LLC	One stop	L + 5.50%	^(a)	7.67%	06/2023	35		32			—		35
MRI Software LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	06/2023	—		(6		)	—		—
						62,886		62,088			6.5		62,886
Chemicals, Plastics and Rubber
Flexan, LLC*	One stop	L + 5.75%	^(c)	8.14%	02/2020	2,310		2,296			0.3		2,310
Flexan, LLC^	One stop	L + 5.75%	^(c)	8.14%	02/2020	1,086		1,081			0.1		1,086
Flexan, LLC	One stop	P + 4.50%	^(f)	9.75%	02/2020	11		11			—		11
Inhance Technologies Holdings LLC	One stop	L + 5.25%	^(b)	7.43%	07/2024	6,880		6,731			0.7		6,811
Inhance Technologies Holdings LLC⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	07/2024	—		(1		)	—		(1		)
Inhance Technologies Holdings LLC⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	07/2024	—		(1		)	—		(2		)
						10,287		10,117			1.1		10,215
Diversified/Conglomerate Manufacturing
Chase Industries, Inc.	Senior loan	L + 4.00%	^(c)	6.34%	05/2025	6,870		6,756			0.7		6,870
Chase Industries, Inc.	Senior loan	L + 4.00%	^(c)	6.34%	05/2023	16		14			—		16
Chase Industries, Inc.	Senior loan	L + 4.00%	^(c)	6.38%	05/2025	12		8			—		12
Inventus Power, Inc.*^	One stop	L + 6.50%	^(a)	8.74%	04/2020	7,285		7,266			0.7		6,557
Inventus Power, Inc.	One stop	L + 6.50%	^(a)(c)	8.78%	04/2020	271		270			—		236
Onicon Incorporated*^	One stop	L + 5.50%	^(a)(c)	7.88%	04/2022	17,916		17,784			1.9		17,916
Onicon Incorporated⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	04/2022	—		(3		)	—		—
Pasternack Enterprises, Inc. and Fairview Microwave, Inc	Senior loan	L + 4.00%	^(a)(f)	6.24%	07/2025	5,634		5,607			0.6		5,606
Pasternack Enterprises, Inc. and Fairview Microwave, Inc	Senior loan	L + 4.00%		N/A⁽⁶⁾	07/2023	—		—			—		—
PetroChoice Holdings, Inc.^	Senior loan	L + 5.00%	^(b)	7.20%	08/2022	1,732		1,700			0.2		1,732
Plex Systems, Inc.*^	One stop	L + 7.50%	^(a)	9.82%	06/2020	18,797		18,635			1.9		18,797
Plex Systems, Inc.⁽⁵⁾	One stop	L + 7.50%		N/A⁽⁶⁾	06/2020	—		(14		)	—		—
Reladyne, Inc.*^	Senior loan	L + 5.00%	^(c)	7.34%	07/2022	16,878		16,691			1.7		16,878
Reladyne, Inc.^	Senior loan	L + 5.00%	^(c)	7.34%	07/2022	173		171			—		173
Reladyne, Inc.	Senior loan	L + 5.00%	^(c)	7.34%	07/2022	142		141			—		142
Reladyne, Inc.⁽⁵⁾	Senior loan	L + 5.00%		N/A⁽⁶⁾	07/2022	—		(3		)	—		—
Source Refrigeration & HVAC, Inc.*	Senior loan	L + 4.75%	^(c)	7.14%	04/2023	9,453		9,352			1.0		9,453
Source Refrigeration & HVAC, Inc.	Senior loan	L + 4.75%	^(c)	7.10%	04/2023	111		110			—		111
Source Refrigeration & HVAC, Inc.	Senior loan	P + 3.75%	^(f)	9.00%	04/2023	89		86			—		89
Source Refrigeration & HVAC, Inc.	Senior loan	L + 4.75%	^(c)	7.09%	04/2023	57		56			—		57
Source Refrigeration & HVAC, Inc.⁽⁵⁾	Senior loan	L + 4.75%		N/A⁽⁶⁾	04/2023	—		(2		)	—		—
Sunless Merger Sub, Inc.	Senior loan	L + 5.00%	^(a)(f)	7.28%	07/2019	1,381		1,384			0.2		1,381
Sunless Merger Sub, Inc.	Senior loan	P + 3.75%	^(f)	8.75%	07/2019	256		256			—		256
Togetherwork Holdings, LLC	One stop	L + 6.50%	^(a)	8.74%	03/2025	9,158		9,031			0.9		9,066
Togetherwork Holdings, LLC	One stop	L + 6.50%	^(a)	8.74%	03/2025	557		549			0.1		552
Togetherwork Holdings, LLC	One stop	L + 6.50%	^(a)	8.74%	03/2025	116		114			—		114
Togetherwork Holdings, LLC	One stop	L + 6.50%	^(a)	8.74%	03/2025	108		106			—		107

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Diversified/Conglomerate Manufacturing - (continued)
Togetherwork Holdings, LLC⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	03/2024	$	—	$	(1	)	—	%	$	(1	)
Togetherwork Holdings, LLC⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	03/2025	—		(2		)	—		(1		)
Togetherwork Holdings, LLC⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	03/2025	—		(3		)	—		(2		)
						97,012		96,059			9.9		96,117
Diversified/Conglomerate Service
Accela, Inc.	One stop	L + 6.00%	^(c)	8.39%	09/2023	5,261		5,193			0.5		5,261
Accela, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	09/2023	—		(1		)	—		—
Agility Recovery Solutions Inc.*^	One stop	L + 6.50%	^(a)	8.74%	03/2020	13,809		13,750			1.4		13,809
Agility Recovery Solutions Inc.⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	03/2020	—		(3		)	—		—
Anaqua, Inc.*^	One stop	L + 6.50%	^(c)	8.85%	07/2022	6,948		6,867			0.7		6,948
Anaqua, Inc.⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	07/2022	—		(1		)	—		—
Apttus Corporation	One stop	L + 7.85%	^(e)	10.06%	01/2023	4,127		3,969			0.4		4,312
Bazaarvoice, Inc.	One stop	L + 8.00%	^(a)	10.24%	02/2024	8,958		8,799			0.9		8,958
Bazaarvoice, Inc.	One stop	P + 7.00%	^(f)	12.25%	02/2024	30		28			—		30
Browz LLC	One stop	L + 9.50%	^(b)	10.17% cash/1.50% PIK	03/2023	1,503		1,473			0.2		1,503
Browz LLC	One stop	L + 9.50%		N/A⁽⁶⁾	03/2023	—		—			—		—
Centrify Corporation*	One stop	L + 6.25%	^(c)	8.59%	08/2024	10,974		10,813			1.1		10,864
Centrify Corporation⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	08/2024	—		(2		)	—		(2		)
Clearwater Analytics, LLC*^	One stop	L + 5.00%	^(a)	7.24%	09/2022	8,532		8,319			0.9		8,532
Clearwater Analytics, LLC⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	09/2022	—		(2		)	—		—
Cloudbees, Inc.	One stop	L + 9.00%	^(a)	10.61% cash/0.50% PIK	05/2023	1,898		1,841			0.2		1,870
Cloudbees, Inc.	One stop	L + 9.00%		N/A⁽⁶⁾	05/2023	—		—			—		—
Confluence Technologies, Inc.	One stop	L + 7.50%	^(a)	9.65%	03/2024	7,033		6,889			0.7		7,033
Confluence Technologies, Inc.	One stop	P + 6.50%	^(a)(f)	10.96%	03/2024	16		15			—		16
Connexin Software, Inc.	One stop	L + 8.50%	^(a)	10.74%	02/2024	2,401		2,348			0.3		2,401
Connexin Software, Inc.	One stop	L + 8.50%		N/A⁽⁶⁾	02/2024	—		—			—		—
Datto, Inc.*	One stop	L + 8.00%	^(a)	10.15%	12/2022	11,156		10,969			1.2		11,156
Datto, Inc.⁽⁵⁾	One stop	L + 8.00%		N/A⁽⁶⁾	12/2022	—		(1		)	—		—
Daxko Acquisition Corporation*^	One stop	L + 5.25%	^(b)	7.54%	09/2023	11,246		11,014			1.2		11,246
Daxko Acquisition Corporation⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	09/2023	—		(1		)	—		—
Digital Guardian, Inc.	One stop	L + 9.00%	^(c)	10.33% cash/1.00% PIK	06/2023	3,999		3,952			0.4		3,999
Digital Guardian, Inc.	Subordinated debt	N/A		8.00% PIK	01/2019	184		184			—		184
Digital Guardian, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	06/2023	—		—			—		(2		)
Digital Guardian, Inc.	One stop	L + 9.00%		N/A⁽⁶⁾	06/2023	—		—			—		—
DISA Holdings Acquisition Subsidiary Corp.*	Senior loan	L + 4.00%	^(a)(f)	6.10%	06/2022	2,006		1,997			0.2		2,006
DISA Holdings Acquisition Subsidiary Corp.	Senior loan	L + 4.00%	^(a)	6.10%	06/2022	2		2			—		2
DISA Holdings Acquisition Subsidiary Corp.⁽⁵⁾	Senior loan	L + 4.00%		N/A⁽⁶⁾	06/2022	—		(1		)	—		—
EGD Security Systems, LLC	One stop	L + 6.25%	^(c)	8.58%	06/2022	11,114		10,960			1.1		11,114
EGD Security Systems, LLC^	One stop	L + 6.25%	^(c)	8.56%	06/2022	98		97			—		98
EGD Security Systems, LLC	One stop	L + 6.25%	^(c)	8.58%	06/2022	75		74			—		75
EGD Security Systems, LLC^	One stop	L + 6.25%	^(c)	8.59%	06/2022	52		52			—		52
GS Acquisitionco, Inc.	One stop	L + 5.00%	^(a)	7.25%	05/2024	22,840		22,620			2.3		22,611
GS Acquisitionco, Inc.	One stop	L + 5.00%	^(a)	7.25%	05/2024	878		870			0.1		869
GS Acquisitionco, Inc.⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	05/2024	—		(1		)	—		(1		)
GS Acquisitionco, Inc.⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	05/2024	—		(5		)	—		(5		)
HealthcareSource HR, Inc.*	One stop	L + 6.75%	^(c)	9.14%	05/2020	23,389		23,203			2.4		23,389
HealthcareSource HR, Inc.⁽⁵⁾	One stop	L + 6.75%		N/A⁽⁶⁾	05/2020	—		(1		)	—		—

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Diversified/Conglomerate Service - (continued)
Host Analytics, Inc.	One stop	N/A		8.50% cash/2.25% PIK	08/2021	$	3,169	$	3,131		0.3	%	$	3,169
Host Analytics, Inc.	One stop	N/A		8.50% cash/2.25% PIK	08/2021	2,656		2,557			0.3		2,656
Host Analytics, Inc.	One stop	N/A		8.50% cash/2.25% PIK	08/2021	741		733			0.1		741
Host Analytics, Inc.⁽⁵⁾	One stop	N/A		N/A⁽⁶⁾	08/2021	—		(6		)	—		—
ICIMS, Inc.	One stop	L + 6.50%	^(c)	8.64%	09/2024	5,412		5,305			0.5		5,304
ICIMS, Inc.⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	09/2024	—		(1		)	—		(1		)
III US Holdings, LLC	One stop	L + 6.50%		N/A⁽⁶⁾	09/2022	—		—			—		—
Imprivata, Inc.	Senior loan	L + 4.00%	^(c)	6.39%	10/2023	13,045		12,907			1.3		13,045
Imprivata, Inc.⁽⁵⁾	Senior loan	L + 4.00%		N/A⁽⁶⁾	10/2023	—		(2		)	—		—
Infogix, Inc.	One stop	L + 6.00%	^(c)	8.39%	04/2024	3,330		3,315			0.3		3,330
Infogix, Inc.	One stop	P + 5.00%	^(f)	10.25%	04/2024	9		9			—		9
Integral Ad Science, Inc.	One stop	L + 7.25%	^(a)	8.25% cash/1.25% PIK	07/2024	5,000		4,904			0.5		4,900
Integral Ad Science, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	07/2023	—		(1		)	—		(1		)
Integration Appliance, Inc.*^	One stop	L + 7.25%	^(a)	9.36%	08/2023	34,762		34,381			3.6		34,415
Integration Appliance, Inc.⁽⁵⁾	One stop	L + 7.25%		N/A⁽⁶⁾	08/2023	—		(7		)	—		(9		)
JAMF Holdings, Inc.	One stop	L + 8.00%	^(c)	10.32%	11/2022	4,550		4,475			0.5		4,550
JAMF Holdings, Inc.⁽⁵⁾	One stop	L + 8.00%		N/A⁽⁶⁾	11/2022	—		(1		)	—		—
Jobvite, Inc.	One stop	L + 8.00%	^(a)	10.15%	07/2023	2,048		1,979			0.2		1,968
Jobvite, Inc.	One stop	L + 8.00%		N/A⁽⁶⁾	07/2023	—		—			—		—
Jobvite, Inc.⁽⁵⁾	One stop	L + 8.00%		N/A⁽⁶⁾	07/2023	—		—			—		(1		)
Kareo, Inc.	One stop	L + 9.00%	^(a)	11.24%	06/2022	4,518		4,348			0.5		4,518
Kareo, Inc.	One stop	L + 9.00%	^(a)	11.24%	06/2022	332		327			—		332
Kareo, Inc.	One stop	L + 9.00%		N/A⁽⁶⁾	06/2022	—		—			—		—
Maverick Bidco Inc.*	One stop	L + 6.25%	^(c)	8.64%	04/2023	17,468		17,195			1.8		17,468
Maverick Bidco Inc.	One stop	L + 6.25%	^(c)	8.59%	04/2023	167		166			—		167
Maverick Bidco Inc.	One stop	L + 6.25%	^(c)	8.60%	04/2023	34		32			—		34
Maverick Bidco Inc.⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	04/2023	—		(3		)	—		—
Ministry Brands, LLC	Senior loan	L + 4.00%	^(a)	6.24%	12/2022	866		862			0.1		866
Ministry Brands, LLC	Senior loan	L + 4.00%	^(a)	6.24%	12/2022	496		493			0.1		496
Ministry Brands, LLC	Senior loan	L + 4.00%	^(a)	6.24%	12/2022	9		9			—		9
MMan Acquisition Co.^	One stop	L + 6.00%	^(c)	8.34%	08/2023	9,726		9,608			1.0		9,531
MMan Acquisition Co.	One stop	L + 6.00%	^(c)	8.34%	08/2023	100		99			—		98
Net Health Acquisition Corp.	One stop	L + 5.50%	^(a)	7.74%	12/2023	3,857		3,823			0.4		3,857
Net Health Acquisition Corp.	One stop	L + 5.50%	^(a)	7.74%	12/2023	540		536			0.1		540
Net Health Acquisition Corp.⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	12/2023	—		(1		)	—		—
Netsmart Technologies, Inc.	Senior loan	L + 3.75%	^(a)	5.99%	06/2025	1,737		1,725			0.2		1,750
Netsmart Technologies, Inc.⁽⁵⁾	Senior loan	L + 4.75%		N/A⁽⁶⁾	04/2023	—		(6		)	—		—
Nextech Systems, LLC	One stop	L + 6.00%	^(a)	8.24%	03/2024	10,357		10,322			1.1		10,357
Nextech Systems, LLC	One stop	L + 6.00%		N/A⁽⁶⁾	03/2024	—		—			—		—
Nexus Brands Group, Inc.	One stop	L + 6.00%	^(c)	8.33%	11/2023	5,750		5,689			0.6		5,750
Nexus Brands Group, Inc.	One stop	L + 6.00%	^(c)	8.39%	11/2023	91		90			—		91
Nexus Brands Group, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	11/2023	—		(1		)	—		—
Nexus Brands Group, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	11/2023	—		(1		)	—		—
Personify, Inc.	One stop	L + 5.75%	^(c)	8.14%	09/2024	5,349		5,296			0.5		5,295
Personify, Inc.⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	09/2024	—		(1		)	—		(1		)
Property Brands, Inc.	One stop	L + 6.00%	^(a)	8.24%	01/2024	10,872		10,655			1.1		10,872
Property Brands, Inc.^	One stop	L + 6.00%	^(a)	8.24%	01/2024	219		216			—		219

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Diversified/Conglomerate Service - (continued)
Property Brands, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	01/2024	$	—	$	(1	)	—	%	$	—
Property Brands, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	01/2024	—		(1		)	—		—
Saba Software, Inc.*^	Senior loan	L + 4.50%	^(a)	6.74%	05/2023	22,515		22,217			2.3		22,515
Saba Software, Inc.⁽⁵⁾	Senior loan	L + 4.50%		N/A⁽⁶⁾	05/2023	—		(2		)	—		—
Saldon Holdings, Inc.*	Senior loan	L + 4.25%	^(a)	6.41%	09/2022	750		741			0.1		746
Saldon Holdings, Inc. *	Senior loan	L + 4.25%	^(a)	6.41%	09/2022	716		713			0.1		713
Telesoft, LLC*	One stop	L + 5.00%	^(c)	7.34%	07/2022	4,160		4,129			0.4		4,160
Telesoft, LLC⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	07/2022	—		(1		)	—		—
Transaction Data Systems, Inc.*	One stop	L + 5.25%	^(a)	7.50%	06/2021	39,051		38,889			4.0		39,051
Transaction Data Systems, Inc.	One stop	L + 5.25%	^(c)	7.64%	06/2021	15		14			—		15
Trintech, Inc.*^	One stop	L + 6.00%	^(b)	8.20%	12/2023	10,875		10,756			1.1		10,875
Trintech, Inc.^	One stop	L + 6.00%	^(b)	8.20%	12/2023	3,412		3,375			0.4		3,412
Trintech, Inc.	One stop	L + 6.00%	^(b)	8.20%	12/2023	30		28			—		30
True Commerce, Inc.^	One stop	L + 5.75%	^(c)	8.14%	11/2023	5,610		5,550			0.6		5,610
True Commerce, Inc.⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	11/2023	—		(1		)	—		—
Upserve, Inc.	One stop	L + 5.50%	^(a)	7.65%	07/2023	2,969		2,948			0.3		2,947
Upserve, Inc.	One stop	L + 5.50%		N/A⁽⁶⁾	07/2023	—		—			—		—
Upserve, Inc.⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	07/2023	—		(1		)	—		(1		)
Valant Medical Solutions, Inc.	One stop	L + 11.00%	^(a)	10.88% cash/2.25% PIK	10/2020	828		775			0.1		828
Valant Medical Solutions, Inc.	One stop	N/A		6.00% PIK	02/2020	149		149			—		184
Valant Medical Solutions, Inc.	One stop	L + 11.00%	^(a)	10.88% cash/2.25% PIK	10/2020	10		10			—		10
Velocity Technology Solutions, Inc.	One stop	L + 6.00%	^(c)	8.39%	12/2023	8,228		8,103			0.9		8,228
Velocity Technology Solutions, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	12/2023	—		(1		)	—		—
Vendavo, Inc.*	One stop	L + 8.50%	^(c)	10.81%	10/2022	28,936		28,441			3.0		28,936
Vendavo, Inc.⁽⁵⁾	One stop	L + 8.50%		N/A⁽⁶⁾	10/2022	—		(9		)	—		—
Vendor Credentialing Service LLC^	One stop	L + 5.75%	^(a)	7.99%	11/2021	12,115		11,949			1.3		12,115
Vendor Credentialing Service LLC	One stop	L + 5.75%		N/A⁽⁶⁾	11/2021	—		—			—		—
Verisys Corporation*	One stop	L + 7.75%	^(c)	10.14%	01/2023	3,886		3,844			0.4		3,886
Verisys Corporation⁽⁵⁾	One stop	L + 7.75%		N/A⁽⁶⁾	01/2023	—		(1		)	—		—
Workforce Software, LLC^	One stop	L + 6.50%	^(c)	8.83%	06/2021	5,790		5,756			0.6		5,790
Workforce Software, LLC	One stop	L + 6.50%	^(c)	8.81%	06/2021	577		571			0.1		577
Workforce Software, LLC⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	06/2021	—		(1		)	—		—
						456,361		450,374			47.0		455,279
Ecological
Pace Analytical Services, LLC	One stop	L + 6.25%	^(a)	8.49%	09/2022	15,190		14,912			1.6		15,190
Pace Analytical Services, LLC^	One stop	L + 6.25%	^(a)	8.49%	09/2022	1,412		1,396			0.1		1,412
Pace Analytical Services, LLC	One stop	L + 6.25%	^(a)	8.48%	09/2022	716		709			0.1		716
Pace Analytical Services, LLC*	One stop	L + 6.25%	^(a)	8.49%	09/2022	346		342			—		346
Pace Analytical Services, LLC^	One stop	L + 6.25%	^(a)	8.47%	09/2022	118		117			—		118
Pace Analytical Services, LLC	One stop	L + 6.25%	^(a)	8.49%	09/2022	10		8			—		10
Pace Analytical Services, LLC⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	09/2022	—		(3		)	—		—
WRE Holding Corp.*	Senior loan	L + 4.75%	^(a)	6.99%	01/2023	1,008		999			0.1		1,008
WRE Holding Corp.	Senior loan	L + 4.75%	^(a)	6.99%	01/2023	42		42			—		42
WRE Holding Corp.	Senior loan	L + 4.75%	^(a)	6.99%	01/2023	21		21			—		21
WRE Holding Corp.	Senior loan	L + 4.75%	^(a)	6.99%	01/2023	5		5			—		5
						18,868		18,548			1.9		18,868

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Electronics
Appriss Holdings, Inc.*^	One stop	L + 6.25%	^(c)	8.64%	05/2022	$	36,397	$	36,016		3.7	%	$	36,034
Appriss Holdings, Inc.⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	05/2022	—		(33		)	—		(29		)
Compusearch Software Holdings, Inc.*^	Senior loan	L + 4.25%	^(c)	6.64%	05/2021	2,067		2,065			0.2		2,067
Diligent Corporation*	One stop	L + 5.50%	^(d)	8.09%	04/2022	26,132		25,856			2.7		26,132
Diligent Corporation	One stop	L + 5.50%	^(d)	8.09%	04/2022	4,879		4,816			0.5		4,879
Diligent Corporation*	One stop	L + 5.50%	^(d)	8.09%	04/2022	4,790		4,700			0.5		4,790
Diligent Corporation*^	One stop	L + 5.50%	^(d)	8.09%	04/2022	2,622		2,586			0.3		2,622
Diligent Corporation	One stop	L + 5.50%	^(c)	7.98%	04/2022	102		101			—		102
Diligent Corporation	One stop	L + 5.50%	^(c)	8.03%	04/2022	81		80			—		81
Diligent Corporation	One stop	L + 5.50%	^(c)(d)	8.03%	04/2022	36		35			—		36
Diligent Corporation⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	04/2022	—		(1		)	—		—
Diligent Corporation⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	04/2022	—		(2		)	—		—
Gamma Technologies, LLC*^	One stop	L + 5.50%	^(a)	7.74%	06/2024	21,478		21,297			2.2		21,478
Gamma Technologies, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	06/2024	—		(1		)	—		—
SEI, Inc.*	Senior loan	L + 5.25%	^(a)	7.49%	07/2023	5,477		5,428			0.6		5,477
Sloan Company, Inc., The	One stop	L + 13.00%	^(c)	10.89% cash/4.50% PIK	04/2020	6,467		6,426			0.5		5,173
Sloan Company, Inc., The	One stop	L + 13.00%	^(c)	10.89% cash/4.50% PIK	04/2020	432		432			—		346
Sloan Company, Inc., The	One stop	L + 13.00%	^(c)	10.89% cash/4.50% PIK	04/2020	50		50			—		40
Sovos Compliance*^	One stop	L + 6.00%	^(a)	8.24%	03/2022	9,234		9,125			1.0		9,234
Sovos Compliance^	One stop	L + 6.00%	^(a)	8.24%	03/2022	1,553		1,536			0.2		1,553
Sovos Compliance	One stop	L + 6.00%	^(a)	8.24%	03/2022	173		172			—		173
Sovos Compliance⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	03/2022	—		(1		)	—		—
Sovos Compliance⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	03/2022	—		(2		)	—		—
Watchfire Enterprises, Inc.	Second lien	L + 8.00%	^(c)	10.39%	10/2021	9,435		9,338			1.0		9,435
						131,405		130,019			13.4		129,623
Grocery
MyWebGrocer, Inc.*	One stop	L + 5.00%	^(d)	7.52%	09/2018	14,271		14,271			1.5		14,271
Teasdale Quality Foods, Inc.	Senior loan	L + 4.75%	^(c)	6.92%	10/2020	324		321			—		317
						14,595		14,592			1.5		14,588
Healthcare, Education and Childcare
Active Day, Inc.	One stop	L + 6.00%	^(a)	8.24%	12/2021	13,265		13,071			1.3		13,000
Active Day, Inc.^	One stop	L + 6.00%	^(a)	8.24%	12/2021	1,024		1,014			0.1		1,003
Active Day, Inc.*	One stop	L + 6.00%	^(a)	8.24%	12/2021	660		655			0.1		646
Active Day, Inc.*	One stop	L + 6.00%	^(a)	8.24%	12/2021	456		451			0.1		447
Active Day, Inc.	One stop	P + 5.00%	^(f)	10.25%	12/2021	22		21			—		20
Acuity Eyecare Holdings, LLC	One stop	L + 6.75%	^(b)	9.01%	03/2022	2,564		2,519			0.3		2,538
Acuity Eyecare Holdings, LLC	One stop	L + 6.75%	^(b)	9.04%	03/2022	203		180			—		185
Acuity Eyecare Holdings, LLC^	One stop	L + 6.75%	^(b)	9.02%	03/2022	149		148			—		148
Acuity Eyecare Holdings, LLC	One stop	P + 5.75%	^(f)	11.00%	03/2022	10		10			—		9
ADCS Clinics Intermediate Holdings, LLC	One stop	L + 5.75%	^(b)	8.04%	05/2022	21,065		20,641			2.1		20,644
ADCS Clinics Intermediate Holdings, LLC*	One stop	L + 5.75%	^(b)	8.04%	05/2022	107		106			—		105
ADCS Clinics Intermediate Holdings, LLC	One stop	L + 5.75%	^(b)	8.04%	05/2022	83		82			—		81
ADCS Clinics Intermediate Holdings, LLC	One stop	L + 5.75%	^(b)	8.04%	05/2022	50		49			—		48
ADCS Clinics Intermediate Holdings, LLC*	One stop	L + 5.75%	^(b)	8.04%	05/2022	31		31			—		31
Agilitas USA, Inc.	One stop	L + 6.00%	^(c)	8.34%	04/2022	8,354		8,295			0.9		8,187
Agilitas USA, Inc.	One stop	L + 6.00%	^(c)	8.34%	04/2022	10		9			—		8
Agilitas USA, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	04/2022	—		(1		)	—		—

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Healthcare, Education and Childcare - (continued)
Aris Teleradiology Company, LLC*⁽⁷⁾	Senior loan	L + 5.50%	^(c)	8.00%	03/2021	$	2,693	$	2,678		0.1	%	$	1,236
Aris Teleradiology Company, LLC⁽⁷⁾	Senior loan	L + 5.50%	^(c)(d)	8.01%	03/2021	141		140			—		47
Avalign Technologies, Inc.^	Senior loan	L + 4.50%	^(a)	6.75%	07/2021	1,343		1,340			0.1		1,343
BIORECLAMATIONIVT, LLC*^	One stop	L + 6.25%	^(a)	8.49%	01/2021	16,852		16,718			1.7		16,852
BIORECLAMATIONIVT, LLC	One stop	P + 5.25%	^(f)	10.50%	01/2021	100		99			—		100
CLP Healthcare Services, Inc.^	Senior loan	L + 5.50%	^(c)	7.89%	12/2020	3,884		3,858			0.4		3,807
DCA Investment Holding, LLC*^	One stop	L + 5.25%	^(c)	7.64%	07/2021	18,584		18,393			1.9		18,584
DCA Investment Holding, LLC*^	One stop	L + 5.25%	^(c)	7.64%	07/2021	13,329		13,249			1.4		13,329
DCA Investment Holding, LLC	One stop	L + 5.25%	^(c)	7.64%	07/2021	2,450		2,422			0.3		2,450
DCA Investment Holding, LLC	One stop	L + 5.25%	^(c)	7.64%	07/2021	151		150			—		151
DCA Investment Holding, LLC	One stop	L + 5.25%	^(c)	7.64%	07/2021	149		147			—		149
DCA Investment Holding, LLC	One stop	L + 5.25%	^(c)	7.64%	07/2021	47		47			—		47
DCA Investment Holding, LLC⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	07/2021	—		(7		)	—		—
DCA Investment Holding, LLC⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	07/2021	—		(9		)	—		—
Deca Dental Management LLC*^	One stop	L + 6.25%	^(c)	8.64%	07/2020	4,062		4,040			0.4		4,062
Deca Dental Management LLC	One stop	L + 6.25%	^(a)(c)	8.57%	07/2020	494		492			0.1		494
Deca Dental Management LLC	One stop	L + 6.25%	^(a)	8.49%	07/2020	50		50			—		50
Deca Dental Management LLC⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	07/2020	—		(1		)	—		—
Dental Holdings Corporation	One stop	L + 5.50%	^(d)	8.02%	02/2020	7,142		7,081			0.7		7,142
Dental Holdings Corporation	One stop	L + 5.50%	^(d)	8.02%	02/2020	1,133		1,126			0.1		1,133
Dental Holdings Corporation	One stop	L + 5.50%	^(b)	7.67%	02/2020	220		214			—		220
Elite Dental Partners LLC*	One stop	L + 5.25%	^(a)	7.49%	06/2023	12,274		12,101			1.3		12,274
Elite Dental Partners LLC	One stop	L + 5.25%	^(a)	7.49%	06/2023	115		101			—		115
Elite Dental Partners LLC⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	06/2023	—		(1		)	—		—
ERG Buyer, LLC	One stop	L + 5.50%	^(c)	7.89%	05/2024	13,183		12,996			1.4		13,183
ERG Buyer, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	05/2024	—		(2		)	—		—
ERG Buyer, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	05/2024	—		(11		)	—		—
eSolutions, Inc.*^	One stop	L + 6.50%	^(a)	8.74%	03/2022	31,722		31,340			3.3		31,484
eSolutions, Inc.⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	03/2022	—		(1		)	—		(1		)
Excelligence Learning Corporation^	One stop	L + 6.00%	^(a)	8.24%	04/2023	4,805		4,768			0.5		4,517
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.64%	05/2023	7,926		7,758			0.8		7,926
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.64%	05/2023	576		566			0.1		576
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.64%	05/2023	355		353			0.1		355
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.64%	05/2023	172		171			—		172
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.59%	05/2023	100		100			—		100
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.64%	05/2023	58		57			—		58
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.64%	05/2023	51		50			—		51
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.64%	05/2023	33		28			—		33
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.64%	05/2023	32		25			—		32
Eyecare Services Partners Holdings LLC	One stop	L + 6.25%	^(c)	8.63%	05/2023	25		22			—		25
G & H Wire Company, Inc.^	One stop	L + 5.75%	^(a)	7.99%	09/2023	5,425		5,367			0.6		5,425
G & H Wire Company, Inc.⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	09/2022	—		(1		)	—		—
Immucor, Inc.	Senior loan	L + 5.00%	^(c)	7.39%	06/2021	1,597		1,597			0.2		1,626
Joerns Healthcare, LLC*^	One stop	L + 6.00%	^(c)	8.31%	05/2020	3,497		3,476			0.3		3,253
Katena Holdings, Inc.^	One stop	L + 6.00%	^(c)	8.39%	06/2021	8,523		8,466			0.9		8,352
Katena Holdings, Inc.^	One stop	L + 6.00%	^(c)	8.39%	06/2021	833		827			0.1		816
Katena Holdings, Inc.	One stop	L + 6.00%	^(c)	8.39%	06/2021	568		562			0.1		557

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Healthcare, Education and Childcare - (continued)
Katena Holdings, Inc.⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	06/2021	$	—	$	(1	)	—	%	$	(2	)
Lombart Brothers, Inc.^	One stop	L + 6.75%	^(c)	9.14%	04/2022	5,041		4,938			0.5		4,966
Lombart Brothers, Inc.^⁽⁸⁾	One stop	L + 6.75%	^(c)	9.14%	04/2022	1,648		1,620			0.2		1,623
Lombart Brothers, Inc.	One stop	P + 5.50%	^(f)	10.75%	04/2022	29		28			—		28
Lombart Brothers, Inc.⁽⁸⁾	One stop	P + 5.50%	^(f)	10.75%	04/2022	8		8			—		8
Maverick Healthcare Group, LLC*	Senior loan	L + 7.50%	^(a)	7.89% cash/2.00% PIK	04/2017	1,316		1,316			0.1		1,316
MD Now Holdings, Inc.	One stop	L + 5.25%	^(c)	7.64%	08/2024	7,770		7,619			0.8		7,692
MD Now Holdings, Inc.⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	08/2024	—		(1		)	—		(2		)
MD Now Holdings, Inc.⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	08/2024	—		(1		)	—		(2		)
MWD Management, LLC & MWD Services, Inc.	One stop	L + 5.25%	^(c)	7.64%	06/2023	5,866		5,808			0.6		5,866
MWD Management, LLC & MWD Services, Inc.^	One stop	L + 5.25%	^(c)	7.64%	06/2023	229		228			—		229
MWD Management, LLC & MWD Services, Inc.⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	06/2022	—		(1		)	—		—
MWD Management, LLC & MWD Services, Inc.⁽⁵⁾	One stop	L + 5.25%		N/A⁽⁶⁾	06/2023	—		(3		)	—		—
Oliver Street Dermatology Holdings, LLC	One stop	L + 6.00%	^(c)	8.39%	05/2022	9,338		9,156			1.0		9,338
Oliver Street Dermatology Holdings, LLC	One stop	L + 6.00%	^(c)	8.39%	05/2022	942		929			0.1		942
Oliver Street Dermatology Holdings, LLC*	One stop	L + 6.00%	^(c)	8.39%	05/2022	210		208			—		210
Oliver Street Dermatology Holdings, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2022	151		149			—		151
Oliver Street Dermatology Holdings, LLC	One stop	L + 6.00%	^(c)	8.39%	05/2022	133		132			—		133
Oliver Street Dermatology Holdings, LLC	One stop	L + 6.00%	^(c)	8.39%	05/2022	116		115			—		116
Oliver Street Dermatology Holdings, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2022	90		89			—		90
Oliver Street Dermatology Holdings, LLC	One stop	L + 6.00%	^(c)(f)	8.85%	05/2022	81		80			—		81
Oliver Street Dermatology Holdings, LLC	One stop	L + 6.00%	^(c)	8.39%	05/2022	78		78			—		78
Oliver Street Dermatology Holdings, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2022	46		45			—		46
Oliver Street Dermatology Holdings, LLC*	One stop	L + 6.00%	^(c)	8.39%	05/2022	41		41			—		41
Oliver Street Dermatology Holdings, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2022	32		32			—		32
Oliver Street Dermatology Holdings, LLC^	One stop	L + 6.00%	^(c)	8.39%	05/2022	30		29			—		30
Oliver Street Dermatology Holdings, LLC⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	05/2022	—		(1		)	—		—
ONsite Mammography, LLC	One stop	L + 6.75%	^(a)	8.99%	11/2023	3,064		3,005			0.3		3,064
ONsite Mammography, LLC	One stop	L + 6.75%	^(c)(d)	9.15%	11/2023	22		21			—		22
ONsite Mammography, LLC⁽⁵⁾	One stop	L + 6.75%		N/A⁽⁶⁾	11/2023	—		(1		)	—		—
Pinnacle Treatment Centers, Inc.	One stop	L + 6.25%	^(c)	8.59%	08/2021	9,879		9,724			1.0		9,879
Pinnacle Treatment Centers, Inc.	One stop	L + 6.25%	^(b)(c)	8.52%	08/2021	58		57			—		58
Pinnacle Treatment Centers, Inc.^	One stop	L + 6.25%	^(c)	8.59%	08/2021	55		54			—		55
Pinnacle Treatment Centers, Inc.	One stop	L + 6.25%	^(a)	8.46%	08/2021	43		42			—		43
PPT Management Holdings, LLC^	One stop	L + 7.50%	^(b)(f)	9.69%	12/2022	10,713		10,443			0.9		8,758
PPT Management Holdings, LLC*	One stop	L + 7.50%	^(b)(c)(f)	9.69%	12/2022	139		140			—		114
PPT Management Holdings, LLC	One stop	L + 7.50%	^(b)(f)	9.69%	12/2022	84		84			—		68
PPT Management Holdings, LLC	One stop	L + 7.50%	^(b)(f)	9.69%	12/2022	40		31			—		32
PPT Management Holdings, LLC⁽⁵⁾	One stop	L + 7.50%	^(b)(f)	9.69%	12/2022	7		4			—		(30		)
Riverchase MSO, LLC	Senior loan	L + 5.25%	^(c)	7.64%	10/2022	4,930		4,880			0.5		4,930
Riverchase MSO, LLC	Senior loan	L + 5.25%	^(c)	7.63%	10/2022	54		53			—		54
RXH Buyer Corporation*^	One stop	L + 5.75%	^(c)	8.14%	09/2021	17,083		16,914			1.8		17,083
RXH Buyer Corporation*	One stop	L + 5.75%	^(c)	8.14%	09/2021	1,933		1,915			0.2		1,933
RXH Buyer Corporation	One stop	P + 4.75%	^(c)(f)	9.19%	09/2021	92		90			—		92
SLMP, LLC^	One stop	L + 6.00%	^(a)	8.24%	05/2023	7,544		7,406			0.8		7,544
SLMP, LLC^	One stop	L + 6.00%	^(a)	8.24%	05/2023	298		294			—		298
SLMP, LLC	One stop	N/A		7.50% PIK	05/2027	90		90			—		90

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Healthcare, Education and Childcare - (continued)
SLMP, LLC⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	05/2023	$	—	$	(1	)	—	%	$	—
SLMP, LLC⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	05/2023	—		(1		)	—		—
Spear Education, LLC^	One stop	L + 6.25%	^(c)	8.75%	08/2019	4,597		4,586			0.5		4,597
Spear Education, LLC	One stop	L + 6.25%	^(c)	8.59%	08/2019	74		74			—		74
Spear Education, LLC	One stop	L + 6.25%	^(c)	8.56%	08/2019	26		26			—		26
Summit Behavioral Healthcare, LLC^	Senior loan	L + 4.75%	^(c)	7.06%	10/2023	8,777		8,666			0.9		8,777
Summit Behavioral Healthcare, LLC	Senior loan	L + 4.75%	^(c)	7.07%	10/2023	65		63			—		65
Summit Behavioral Healthcare, LLC	Senior loan	L + 4.75%	^(c)	7.07%	10/2023	27		24			—		27
WHCG Management, LLC*	Senior loan	L + 5.00%	^(c)	7.39%	03/2023	2,370		2,348			0.3		2,370
WHCG Management, LLC	Senior loan	L + 5.00%	^(c)	7.35%	03/2023	100		99			—		100
WHCG Management, LLC⁽⁵⁾	Senior loan	L + 5.00%		N/A⁽⁶⁾	03/2023	—		(2		)	—		—
WIRB-Copernicus Group, Inc.*^	Senior loan	L + 4.25%	^(a)	6.49%	08/2022	10,901		10,834			1.1		10,901
WIRB-Copernicus Group, Inc.⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	08/2022	—		(1		)	—		—
WIRB-Copernicus Group, Inc.⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	08/2022	—		(2		)	—		—
						329,007		324,822			33.4		323,259
Home and Office Furnishings, Housewares, and Durable Consumer
1A Smart Start LLC*	Senior loan	L + 4.50%	^(a)	6.74%	02/2022	548		547			0.1		550
CST Buyer Company^	One stop	L + 5.00%	^(a)	7.24%	03/2023	2,433		2,378			0.2		2,433
CST Buyer Company⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	03/2023	—		(1		)	—		—
Plano Molding Company, LLC*^	One stop	L + 7.50%	^(a)	9.67%	05/2021	10,048		9,937			1.0		9,848
						13,029		12,861			1.3		12,831
Hotels, Motels, Inns, and Gaming
Aimbridge Hospitality, LLC*^	One stop	L + 5.00%	^(a)	7.24%	06/2022	9,941		9,811			1.0		9,941
Aimbridge Hospitality, LLC*	One stop	L + 5.00%	^(a)	7.24%	06/2022	4,830		4,764			0.5		4,830
Aimbridge Hospitality, LLC	One stop	L + 5.00%	^(a)	7.24%	06/2022	805		794			0.1		805
Aimbridge Hospitality, LLC	One stop	L + 5.00%	^(a)	7.24%	06/2022	16		15			—		16
Aimbridge Hospitality, LLC⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	06/2022	—		(1		)	—		—
						15,592		15,383			1.6		15,592
Insurance
Captive Resources Midco, LLC*^	One stop	L + 5.75%	^(a)	7.99%	12/2021	34,313		33,908			3.5		34,313
Captive Resources Midco, LLC⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	12/2021	—		(18		)	—		—
Captive Resources Midco, LLC⁽⁵⁾	One stop	L + 5.75%		N/A⁽⁶⁾	12/2021	—		(23		)	—		—
Internet Pipeline, Inc.	One stop	L + 4.75%	^(a)	7.00%	08/2022	4,809		4,715			0.5		4,809
Internet Pipeline, Inc.*	One stop	L + 4.75%	^(a)	7.00%	08/2022	2,077		2,056			0.2		2,077
Internet Pipeline, Inc.*	One stop	L + 4.75%	^(a)	7.00%	08/2022	786		778			0.1		786
Internet Pipeline, Inc.⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	08/2021	—		(1		)	—		—
RSC Acquisition, Inc.	Senior loan	L + 4.25%	^(c)(d)(f)	6.72%	11/2022	4,380		4,358			0.5		4,369
RSC Acquisition, Inc.	Senior loan	L + 4.25%	^(d)(e)	6.76%	11/2021	21		21			—		21
RSC Acquisition, Inc.⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	11/2022	—		(2		)	—		(1		)
						46,386		45,792			4.8		46,374
Leisure, Amusement, Motion Pictures, Entertainment
NFD Operating, LLC	One stop	L + 7.00%	^(a)	9.11%	06/2021	2,302		2,283			0.2		2,302
NFD Operating, LLC	One stop	L + 7.00%		N/A⁽⁶⁾	06/2021	—		—			—		—
PADI Holdco, Inc.⁽⁸⁾⁽⁹⁾	One stop	E + 5.75%	^(g)	5.75%	04/2023	9,591		9,591			1.0		9,313
PADI Holdco, Inc.*^	One stop	L + 5.75%	^(c)	8.14%	04/2023	9,677		9,465			1.0		9,677
PADI Holdco, Inc.	One stop	L + 5.75%	^(c)	8.14%	04/2022	125		123			—		125
Self Esteem Brands, LLC*^	Senior loan	L + 4.75%	^(a)	6.99%	02/2020	16,120		16,069			1.7		16,120

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Leisure, Amusement, Motion Pictures, Entertainment - (continued)
Self Esteem Brands, LLC⁽⁵⁾	Senior loan	L + 4.75%		N/A⁽⁶⁾	02/2020	$	—	$	(3	)	—	%	$	—
Sunshine Sub, LLC	One stop	L + 4.75%	^(a)	6.99%	05/2024	7,720		7,575			0.8		7,720
Sunshine Sub, LLC⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	05/2024	—		(1		)	—		—
Sunshine Sub, LLC⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	05/2024	—		(3		)	—		—
Teaching Company, The	One stop	L + 4.75%	^(c)	7.09%	07/2023	10,855		10,757			1.1		10,855
Teaching Company, The⁽⁵⁾	One stop	L + 4.75%		N/A⁽⁶⁾	07/2023	—		(1		)	—		—
Titan Fitness, LLC*	One stop	L + 6.50%	^(a)	8.61%	06/2021	12,952		12,846			1.3		12,952
Titan Fitness, LLC*	One stop	L + 6.50%	^(a)	8.61%	06/2021	1,954		1,949			0.2		1,954
Titan Fitness, LLC*	One stop	L + 6.50%	^(a)	8.61%	06/2021	1,716		1,712			0.2		1,716
Titan Fitness, LLC^	One stop	L + 6.50%	^(a)	8.61%	06/2021	927		920			0.1		927
Titan Fitness, LLC⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	06/2021	—		(9		)	—		—
WBZ Investment LLC	One stop	L + 5.50%	^(a)	7.64%	09/2020	5,149		5,049			0.5		5,097
WBZ Investment LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	09/2024	—		—			—		(1		)
WBZ Investment LLC(5)	One stop	L + 5.50%		N/A⁽⁶⁾	09/2024	—		(2		)	—		(2		)
						79,088		78,320			8.1		78,755
Oil and Gas
Drilling Info Holdings, Inc.	Senior loan	L + 4.25%	^(b)	6.54%	07/2025	14,413		14,217			1.5		14,341
Drilling Info Holdings, Inc.⁽⁵⁾	Senior loan	L + 4.25%		N/A⁽⁶⁾	07/2023	—		(2		)	—		—
Drilling Info Holdings, Inc^.(5)	Senior loan	L + 4.25%		N/A⁽⁶⁾	07/2025	—		(4		)	—		(1		)
						14,413		14,211			1.5		14,340
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC	One stop	L + 5.50%	^(c)	7.89%	11/2021	5,620		5,562			0.6		5,620
Georgica Pine Clothiers, LLC^	One stop	L + 5.50%	^(c)	7.89%	11/2021	490		487			0.1		490
Georgica Pine Clothiers, LLC*	One stop	L + 5.50%	^(c)	7.89%	11/2021	344		341			—		344
Georgica Pine Clothiers, LLC	One stop	L + 5.50%	^(c)(f)	8.42%	11/2021	46		45			—		46
IMPLUS Footwear, LLC	One stop	L + 6.75%	^(c)	9.14%	04/2021	10,013		9,913			1.0		10,013
IMPLUS Footwear, LLC	One stop	L + 6.75%	^(c)	9.09%	04/2021	1,763		1,745			0.2		1,763
IMPLUS Footcare, LLC	One stop	L + 6.75%	^(c)	9.14%	04/2021	57		57			—		57
Massage Envy, LLC*^	One stop	L + 6.75%	^(c)(f)	9.06%	09/2020	34,835		34,631			3.6		34,835
Massage Envy, LLC^	One stop	L + 6.75%	^(c)	9.06%	09/2020	99		98			—		99
Massage Envy, LLC	One stop	L + 6.75%	^(c)	9.09%	09/2020	64		64			—		64
Massage Envy, LLC^	One stop	L + 6.75%	^(c)(f)	9.07%	09/2020	48		48			—		48
Massage Envy, LLC	One stop	L + 6.75%	^(c)(f)	9.09%	09/2020	42		41			—		42
Massage Envy, LLC^	One stop	L + 6.75%	^(c)(f)	9.08%	09/2020	40		40			—		40
Massage Envy, LLC^	One stop	L + 6.75%	^(c)(f)	9.12%	09/2020	38		38			—		38
Massage Envy, LLC^	One stop	L + 6.75%	^(c)(f)	9.07%	09/2020	35		34			—		35
Massage Envy, LLC^	One stop	L + 6.75%	^(c)(f)	9.08%	09/2020	19		19			—		19
Massage Envy, LLC^	One stop	L + 6.75%	^(c)(f)	9.13%	09/2020	15		15			—		15
Massage Envy, LLC	One stop	L + 6.75%	^(c)	9.09%	09/2020	10		9			—		10
Massage Envy, LLC⁽⁵⁾	One stop	L + 6.75%		N/A⁽⁶⁾	09/2020	—		(7		)	—		—
Orthotics Holdings, Inc.*	One stop	L + 5.50%	^(a)	7.74%	02/2020	8,204		8,166			0.8		8,040
Orthotics Holdings, Inc.*⁽⁸⁾	One stop	L + 5.50%	^(a)	7.74%	02/2020	1,345		1,338			0.1		1,318
Orthotics Holdings, Inc.⁽⁵⁾⁽⁸⁾	One stop	L + 5.50%		N/A⁽⁶⁾	02/2020	—		(1		)	—		—
Orthotics Holdings, Inc.⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	02/2020	—		(6		)	—		(4		)
Team Technologies Acquisition Company^	Senior loan	L + 5.00%	^(c)(f)	7.35%	12/2018	4,242		4,241			0.5		4,231
Team Technologies Acquisition Company*	Senior loan	L + 5.50%	^(c)(f)	7.85%	12/2018	782		781			0.1		792
Team Technologies Acquisition Company⁽⁵⁾	Senior loan	L + 5.00%		N/A⁽⁶⁾	12/2018	—		—			—		(1		)
						68,151		67,699			7.0		67,954

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Personal, Food and Miscellaneous Services
Captain D's, LLC*^	Senior loan	L + 4.50%	^(b)	6.71%	12/2023	$	3,965	$	3,913		0.4	%	$	3,965
Captain D's, LLC	Senior loan	P + 3.50%	^(a)(f)	7.86%	12/2023	20		19			—		20
Community Veterinary Partners, LLC^	One stop	L + 5.50%	^(c)	7.89%	10/2021	282		280			—		282
Community Veterinary Partners, LLC*	One stop	L + 5.50%	^(c)	7.89%	10/2021	99		97			—		99
Community Veterinary Partners, LLC	One stop	L + 5.50%	^(c)	7.89%	10/2021	75		75			—		75
Community Veterinary Partners, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	10/2021	—		(3		)	—		—
Imperial Optical Midco Inc.	One stop	L + 4.75%	^(b)	7.04%	08/2023	2,725		2,685			0.3		2,684
Imperial Optical Midco Inc.	One stop	L + 4.75%	^(b)	6.96%	08/2023	44		39			—		39
Imperial Optical Midco Inc.	One stop	L + 4.75%		N/A⁽⁶⁾	08/2023	—		—			—		—
PPV Intermediate Holdings II, LLC	One stop	N/A		7.90% PIK	05/2023	2		2			—		2
PPV Intermediate Holdings II, LLC⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	05/2023	—		(1		)	—		—
PPV Intermediate Holdings II, LLC⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	05/2020	—		(6		)	—		—
Ruby Slipper Cafe LLC, The	One stop	L + 7.50%	^(c)	9.85%	01/2023	1,035		1,026			0.1		1,035
Ruby Slipper Cafe LLC, The	One stop	L + 7.50%	^(c)	9.82%	01/2023	5		5			—		5
Ruby Slipper Cafe LLC, The	One stop	L + 7.50%	^(c)	9.84%	01/2023	5		4			—		5
Southern Veterinary Partners, LLC	One stop	L + 5.50%	^(a)	7.74%	05/2025	3,870		3,812			0.4		3,870
Southern Veterinary Partners, LLC	One stop	L + 5.50%	^(a)	7.74%	05/2025	231		228			—		231
Southern Veterinary Partners, LLC	One stop	L + 5.50%	^(a)	7.74%	05/2025	205		203			—		205
Southern Veterinary Partners, LLC	One stop	L + 5.50%	^(a)	7.74%	05/2025	173		170			—		173
Southern Veterinary Partners, LLC	One stop	L + 5.50%	^(a)	7.74%	05/2025	100		97			—		100
Southern Veterinary Partners, LLC	One stop	L + 5.50%	^(a)	7.74%	05/2025	77		76			—		77
Southern Veterinary Partners, LLC	One stop	L + 5.50%	^(a)	7.74%	05/2025	67		66			—		67
Southern Veterinary Partners, LLC	One stop	L + 5.50%	^(a)	7.74%	05/2025	50		48			—		50
Southern Veterinary Partners, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	05/2023	—		(2		)	—		—
Southern Veterinary Partners, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	05/2025	—		(7		)	—		—
Veterinary Specialists of North America, LLC^	One stop	L + 5.50%	^(a)	7.69%	07/2021	7,331		7,278			0.8		7,331
Veterinary Specialists of North America, LLC^	One stop	L + 5.50%	^(a)	7.74%	07/2021	764		755			0.1		764
Veterinary Specialists of North America, LLC*	One stop	L + 5.50%	^(a)	7.74%	07/2021	415		413			0.1		415
Veterinary Specialists of North America, LLC*	One stop	L + 5.50%	^(a)	7.74%	07/2021	160		160			—		160
Veterinary Specialists of North America, LLC^	One stop	L + 5.50%	^(a)	7.74%	07/2021	123		122			—		123
Veterinary Specialists of North America, LLC*	One stop	L + 5.50%	^(a)	7.74%	07/2021	62		62			—		62
Veterinary Specialists of North America, LLC	One stop	L + 5.50%	^(a)	7.74%	07/2021	12		10			—		12
Veterinary Specialists of North America, LLC⁽⁵⁾	One stop	L + 5.50%		N/A⁽⁶⁾	07/2021	—		(2		)	—		—
Wetzel's Pretzels, LLC*	One stop	L + 6.75%	^(a)	8.99%	09/2021	8,922		8,805			0.9		8,922
Wetzel's Pretzels, LLC	One stop	L + 6.75%	^(a)	8.86%	09/2021	3		2			—		3
						30,822		30,431			3.1		30,776
Printing and Publishing
Brandmuscle, Inc.^	Senior loan	L + 5.00%	^(c)	7.39%	12/2021	618		614			0.1		622
Messenger, LLC	One stop	L + 6.00%	^(a)(f)	8.23%	08/2023	3,410		3,343			0.3		3,376
Messenger, LLC	One stop	P + 5.00%	^(f)	10.25%	08/2023	3		3			—		3
						4,031		3,960			0.4		4,001
Retail Stores
Batteries Plus Holding Corporation	One stop	L + 6.75%	^(a)	8.99%	07/2022	11,933		11,739			1.2		11,933
Batteries Plus Holding Corporation⁽⁵⁾	One stop	L + 6.75%		N/A⁽⁶⁾	07/2022	—		(1		)	—		—
Cycle Gear, Inc.^	One stop	L + 6.50%	^(c)	8.84%	01/2020	10,321		10,263			1.1		10,321
Cycle Gear, Inc.^	One stop	L + 6.50%	^(c)	8.84%	01/2020	603		600			0.1		603
Cycle Gear, Inc.⁽⁵⁾	One stop	L + 6.50%		N/A⁽⁶⁾	01/2020	—		(7		)	—		—

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost			Percentage of Net Assets		Fair Value ⁽⁴⁾
Retail Stores - (continued)
DTLR, Inc.*^	One stop	L + 6.50%	^(b)	8.68%	08/2022	$	22,732	$	22,466		2.3	%	$	22,732
Elite Sportswear, L.P.	Senior loan	L + 5.75%	^(c)	8.14%	06/2020	6,872		6,815			0.7		6,872
Elite Sportswear, L.P.	Senior loan	L + 5.75%	^(c)	8.14%	06/2020	2,763		2,740			0.3		2,763
Elite Sportswear, L.P.	Senior loan	L + 5.75%	^(c)	8.14%	06/2020	1,422		1,413			0.2		1,422
Elite Sportswear, L.P.*	Senior loan	L + 5.75%	^(c)	8.14%	06/2020	466		464			0.1		466
Elite Sportswear, L.P.	Senior loan	L + 5.75%	^(c)	8.14%	06/2020	216		214			—		216
Elite Sportswear, L.P.*	Senior loan	L + 5.75%	^(c)	8.14%	06/2020	206		205			—		206
Elite Sportswear, L.P.	Senior loan	L + 5.75%		N/A⁽⁶⁾	06/2020	—		—			—		—
Elite Sportswear, L.P.⁽⁵⁾	Senior loan	L + 5.75%		N/A⁽⁶⁾	06/2020	—		(3		)	—		—
Feeders Supply Company, LLC	One stop	L + 5.75%	^(a)	8.01%	04/2021	4,826		4,769			0.5		4,826
Feeders Supply Company, LLC	Subordinated debt	N/A		12.50% cash/7.00% PIK	04/2021	67		67			—		67
Feeders Supply Company, LLC	One stop	L + 5.75%		N/A⁽⁶⁾	04/2021	—		—			—		—
Marshall Retail Group LLC, The^	One stop	L + 6.00%	^(c)	8.34%	08/2020	11,922		11,874			1.2		11,922
Marshall Retail Group LLC, The⁽⁵⁾	One stop	L + 6.00%		N/A⁽⁶⁾	08/2019	—		(9		)	—		—
Mills Fleet Farm Group LLC*^	One stop	L + 5.50%	^(a)	7.74%	02/2022	1,815		1,743			0.2		1,815
Paper Source, Inc.^	One stop	L + 6.25%	^(c)	8.64%	09/2019	12,255		12,224			1.3		12,255
Paper Source, Inc.*	One stop	L + 6.25%	^(c)	8.64%	09/2019	1,628		1,621			0.2		1,628
Paper Source, Inc.	One stop	P + 5.00%	^(f)	10.25%	09/2019	965		960			0.1		965
Pet Holdings ULC*^^(8)(10)	One stop	L + 5.50%	^(c)	7.84%	07/2022	14,764		14,575			1.5		14,764
Pet Holdings ULC*^^(8)(10)	One stop	L + 5.50%	^(c)	7.84%	07/2022	100		99			—		100
Pet Holdings ULC^(5)(8)(10)	One stop	L + 5.50%		N/A⁽⁶⁾	07/2022	—		(2		)	—		—
PetPeople Enterprises, LLC^	One stop	L + 5.00%	^(a)	7.25%	09/2023	3,114		3,082			0.3		3,114
PetPeople Enterprises, LLC	One stop	N/A		8.25% PIK	01/2019	168		168			—		168
PetPeople Enterprises, LLC	One stop	L + 5.00%		N/A⁽⁶⁾	09/2023	—		—			—		—
PetPeople Enterprises, LLC⁽⁵⁾	One stop	L + 5.00%		N/A⁽⁶⁾	09/2023	—		(1		)	—		—
						109,158		108,078			11.3		109,158
Telecommunications
NetMotion Wireless Holdings, Inc.*^	One stop	L + 6.25%	^(c)	8.64%	10/2021	6,393		6,311			0.7		6,393
NetMotion Wireless Holdings, Inc.⁽⁵⁾	One stop	L + 6.25%		N/A⁽⁶⁾	10/2021	—		(1		)	—		—
						6,393		6,310			0.7		6,393
Textiles and Leather
SHO Holding I Corporation*	Senior loan	L + 5.00%	^(c)	7.34%	10/2022	2,211		2,181			0.2		2,122
SHO Holding I Corporation	Senior loan	L + 4.00%	^(a)(c)	6.14%	10/2021	15		15			—		12
						2,226		2,196			0.2		2,134
Utilities
Arcos, LLC	One stop	L + 6.00%	^(c)	8.39%	02/2021	3,553		3,519			0.4		3,553
Arcos, LLC	One stop	L + 6.00%		N/A⁽⁶⁾	02/2021	—		—			—		—
						3,553		3,519			0.4		3,553
Total non-controlled/non-affiliate company debt investments						$	1,679,746	$	1,660,130		171.8	%	$	1,664,317

Equity investments^(11)(12)
Aerospace and Defense
NTS Technical Systems	Common stock	N/A		N/A	N/A	2		$	1,506		0.1	%	$	616
NTS Technical Systems	Preferred stock	N/A		N/A	N/A	—		256			—		323
NTS Technical Systems	Preferred stock	N/A		N/A	N/A	—		128			—		177
Tresys Technology Holdings, Inc.	Common stock	N/A		N/A	N/A	295		295			—		—

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾	Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾	Amortized Cost		Percentage of Net Assets		Fair Value ⁽⁴⁾
Aerospace and Defense - (continued)
Whitcraft LLC	Common stock	N/A	N/A	N/A	4	$	375	0.1	%	$	611
						2,560		0.2		1,727
Automobile
Grease Monkey International, LLC	LLC units	N/A	N/A	N/A	354	354		0.1		512
Polk Acquisition Corp.	LP interest	N/A	N/A	N/A	1	144		—		95
Quick Quack Car Wash Holdings, LLC	LLC units	N/A	N/A	N/A	—	207		—		207
						705		0.1		814
Beverage, Food and Tobacco
Benihana, Inc.	LLC units	N/A	N/A	N/A	43	699		0.1		856
C. J. Foods, Inc.	Preferred stock	N/A	N/A	N/A	—	75		0.1		505
Cafe Rio Holding, Inc.	Common stock	N/A	N/A	N/A	2	224		—		265
Global ID Corporation	LLC interest	N/A	N/A	N/A	2	242		—		346
Hopdoddy Holdings, LLC	LLC units	N/A	N/A	N/A	27	130		—		122
Hopdoddy Holdings, LLC	LLC units	N/A	N/A	N/A	12	36		—		35
Mendocino Farms, LLC	Common stock	N/A	N/A	N/A	11	50		—		50
Purfoods, LLC	LLC interest	N/A	N/A	N/A	381	381		0.1		527
Rubio's Restaurants, Inc.	Preferred stock	N/A	N/A	N/A	2	945		0.1		1,236
Uinta Brewing Company	LP interest	N/A	N/A	N/A	462	462		—		—
						3,244		0.4		3,942
Buildings and Real Estate
Brooks Equipment Company, LLC	Common stock	N/A	N/A	N/A	10	1,021		0.3		2,369

Chemicals, Plastics and Rubber
Flexan, LLC	Preferred stock	N/A	N/A	N/A	—	90		—		71
Flexan, LLC	Common stock	N/A	N/A	N/A	1	—		—		—
Inhance Technologies Holdings LLC	LLC units	N/A	N/A	N/A	—	70		—		70
						160		—		141
Diversified/Conglomerate Manufacturing
Inventus Power, Inc.	Preferred stock	N/A	N/A	N/A	—	370		—		—
Inventus Power, Inc.	LLC units	N/A	N/A	N/A	—	54		—		48
Inventus Power, Inc.	Common stock	N/A	N/A	N/A	—	—		—		—
Reladyne, Inc.	LP interest	N/A	N/A	N/A	—	249		0.1		498
Sunless Merger Sub, Inc.	LP interest	N/A	N/A	N/A	160	160		—		—
						833		0.1		546
Diversified/Conglomerate Service
Accela, Inc.	LLC units	N/A	N/A	N/A	296	296		—		325
Agility Recovery Solutions Inc.	Preferred stock	N/A	N/A	N/A	67	341		0.1		424
Apttus Corporation	Preferred stock	N/A	N/A	N/A	18	263		—		354
Apttus Corporation	Warrant	N/A	N/A	N/A	34	194		—		185
Centrify Corporation	LP interest	N/A	N/A	N/A	—	348		—		348
Centrify Corporation	LP interest	N/A	N/A	N/A	123	—		—		—
Cloudbees, Inc.	Preferred stock	N/A	N/A	N/A	33	207		—		207
Cloudbees, Inc.	Warrant	N/A	N/A	N/A	29	39		—		39
Confluence Technologies, Inc.	LLC interest	N/A	N/A	N/A	1	87		—		100
Connexin Software, Inc.	LLC interest	N/A	N/A	N/A	69	69		—		91
Digital Guardian, Inc.	Warrant	N/A	N/A	N/A	57	10		—		10
DISA Holdings Acquisition Subsidiary Corp.	Common stock	N/A	N/A	N/A	—	154		—		248

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾	Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾	Amortized Cost		Percentage of Net Assets		Fair Value ⁽⁴⁾
Diversified/Conglomerate Service - (continued)
GS Acquisitionco, Inc.	LP interest	N/A	N/A	N/A	1	$	98	—	%	$	127
HealthcareSource HR, Inc.	LLC interest	N/A	N/A	N/A	—	348		0.1		413
Host Analytics, Inc.	Warrant	N/A	N/A	N/A	368	134		0.1		384
Jobvite, Inc.	Warrant	N/A	N/A	N/A	72	47		—		47
Kareo, Inc.	Warrant	N/A	N/A	N/A	23	160		—		2
Kareo, Inc.	Preferred stock	N/A	N/A	N/A	1	4		—		5
Maverick Bidco Inc.	LLC units	N/A	N/A	N/A	1	369		0.1		437
MMan Acquisition Co.	LP interest	N/A	N/A	N/A	263	263		—		206
Net Health Acquisition Corp.	LP interest	N/A	N/A	N/A	—	346		0.1		388
Nexus Brands Group, Inc.	LP interest	N/A	N/A	N/A	—	136		—		155
Personify, Inc.	LLC units	N/A	N/A	N/A	297	297		—		297
Project Alpha Intermediate Holding, Inc.	Common stock	N/A	N/A	N/A	—	417		0.1		500
Project Alpha Intermediate Holding, Inc.	Common stock	N/A	N/A	N/A	103	4		—		51
Property Brands, Inc.	Preferred stock	N/A	N/A	N/A	28	284		—		307
Valant Medical Solutions, Inc.	Warrant	N/A	N/A	N/A	5	68		—		51
Vendavo, Inc.	Preferred stock	N/A	N/A	N/A	1,017	1,017		0.1		1,332
Verisys Corporation	LLC interest	N/A	N/A	N/A	261	261		—		239
Vitalyst, LLC	Preferred stock	N/A	N/A	N/A	—	61		—		88
Vitalyst, LLC	Common stock	N/A	N/A	N/A	1	7		—		—
Workforce Software, LLC	LLC units	N/A	N/A	N/A	323	323		0.1		371
Xmatters, Inc. and Alarmpoint, Inc.	Preferred stock	N/A	N/A	N/A	242	221		—		211
Xmatters, Inc. and Alarmpoint, Inc.	Warrant	N/A	N/A	N/A	43	34		—		16
Xmatters, Inc. and Alarmpoint, Inc.	Preferred stock	N/A	N/A	N/A	10	10		—		12
						6,917		0.8		7,970
Ecological
Pace Analytical Services, LLC	Common stock	N/A	N/A	N/A	3	304		—		280

Electronics
Diligent Corporation⁽¹³⁾	Preferred stock	N/A	N/A	N/A	56	1		—		206
Project Silverback Holdings Corp.	Preferred stock	N/A	N/A	N/A	3	6		—		—
SEI, Inc.	LLC units	N/A	N/A	N/A	340	265		0.1		643
Sloan Company, Inc., The	LLC units	N/A	N/A	N/A	—	152		—		—
Sloan Company, Inc., The	LLC units	N/A	N/A	N/A	2	14		—		—
						438		0.1		849
Grocery
MyWebGrocer, Inc.	LLC units	N/A	N/A	N/A	1,418	1,446		—		—
MyWebGrocer, Inc.	Preferred stock	N/A	N/A	N/A	71	165		—		41
						1,611		—		41
Healthcare, Education and Childcare
Active Day, Inc.	LLC interest	N/A	N/A	N/A	1	614		0.1		446
Acuity Eyecare Holdings, LLC	LLC interest	N/A	N/A	N/A	198	198		—		196
ADCS Clinics Intermediate Holdings, LLC	Preferred stock	N/A	N/A	N/A	1	579		0.1		363
ADCS Clinics Intermediate Holdings, LLC	Common stock	N/A	N/A	N/A	—	6		—		—
Advanced Pain Management Holdings, Inc.⁽⁷⁾	Preferred stock	N/A	N/A	N/A	8	829		—		—
Advanced Pain Management Holdings, Inc.⁽⁷⁾	Common stock	N/A	N/A	N/A	67	67		—		—
Advanced Pain Management Holdings, Inc.⁽⁷⁾	Preferred stock	N/A	N/A	N/A	1	64		—		—
BIORECLAMATIONIVT, LLC	LLC units	N/A	N/A	N/A	—	407		0.1		666

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾	Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾	Amortized Cost		Percentage of Net Assets		Fair Value ⁽⁴⁾
Healthcare, Education and Childcare - (continued)
DCA Investment Holding, LLC	LLC units	N/A	N/A	N/A	8,637	$	864	0.1	%	$	1,073
DCA Investment Holding, LLC	LLC units	N/A	N/A	N/A	87	9		—		—
Deca Dental Management LLC	LLC units	N/A	N/A	N/A	357	357		0.1		428
Dental Holdings Corporation	LLC units	N/A	N/A	N/A	883	831		0.1		733
Elite Dental Partners LLC	Common stock	N/A	N/A	N/A	—	360		0.1		360
Encore GC Acquisition, LLC	LLC units	N/A	N/A	N/A	18	182		—		239
Encore GC Acquisition, LLC	LLC units	N/A	N/A	N/A	18	—		—		19
ERG Buyer, LLC	LLC units	N/A	N/A	N/A	—	349		0.1		349
ERG Buyer, LLC	LLC units	N/A	N/A	N/A	4	4		—		4
Eyecare Services Partners Holdings LLC	LLC units	N/A	N/A	N/A	—	133		—		147
Eyecare Services Partners Holdings LLC	LLC units	N/A	N/A	N/A	—	1		—		5
G & H Wire Company, Inc.	LLC interest	N/A	N/A	N/A	148	148		—		122
IntegraMed America, Inc.	LLC interest	N/A	N/A	N/A	—	417		—		172
Katena Holdings, Inc.	LLC units	N/A	N/A	N/A	—	387		—		293
Lombart Brothers, Inc.	Common stock	N/A	N/A	N/A	1	157		—		177
MD Now Holdings, Inc.	LLC units	N/A	N/A	N/A	7	68		—		68
MWD Management, LLC & MWD Services, Inc.	LLC interest	N/A	N/A	N/A	182	182		—		122
Oliver Street Dermatology Holdings, LLC	LLC units	N/A	N/A	N/A	234	234		—		346
Pentec Acquisition Sub, Inc.	Preferred stock	N/A	N/A	N/A	1	116		—		178
Pinnacle Treatment Centers, Inc.	Preferred stock	N/A	N/A	N/A	—	231		—		268
Pinnacle Treatment Centers, Inc.	Common stock	N/A	N/A	N/A	2	2		—		6
Radiology Partners, Inc.	LLC units	N/A	N/A	N/A	43	85		—		191
Radiology Partners, Inc.	LLC units	N/A	N/A	N/A	11	76		—		48
RXH Buyer Corporation	LP interest	N/A	N/A	N/A	7	683		—		290
Sage Dental Management, LLC	LLC units	N/A	N/A	N/A	—	249		—		28
Sage Dental Management, LLC	LLC units	N/A	N/A	N/A	3	3		—		—
SLMP, LLC	LLC interest	N/A	N/A	N/A	289	289		—		308
Spear Education, LLC	LLC units	N/A	N/A	N/A	—	62		—		75
Spear Education, LLC	LLC units	N/A	N/A	N/A	1	1		—		28
SSH Corporation	Common stock	N/A	N/A	N/A	—	40		—		187
Summit Behavioral Healthcare, LLC	LLC interest	N/A	N/A	N/A	1	68		—		73
Summit Behavioral Healthcare, LLC	LLC interest	N/A	N/A	N/A	1	—		—		3
Surgical Information Systems, LLC	Common stock	N/A	N/A	N/A	4	414		0.1		535
U.S. Renal Care, Inc.	LP interest	N/A	N/A	N/A	1	2,665		0.2		1,796
WHCG Management, LLC	LLC interest	N/A	N/A	N/A	—	246		—		135
						12,677		1.1		10,477
Insurance
Captive Resources Midco, LLC	LLC units	N/A	N/A	N/A	1	—		0.1		393
Internet Pipeline, Inc.	Preferred stock	N/A	N/A	N/A	—	72		—		100
Internet Pipeline, Inc.	Common stock	N/A	N/A	N/A	44	1		—		174
						73		0.1		667
Leisure, Amusement, Motion Pictures, Entertainment
LMP TR Holdings, LLC	LLC units	N/A	N/A	N/A	712	712		0.1		1,151
PADI Holdco, Inc.	LLC units	N/A	N/A	N/A	—	414		—		454
Titan Fitness, LLC	LLC units	N/A	N/A	N/A	7	712		0.2		1,403
WBZ Investment LLC	LLC interest	N/A	N/A	N/A	31	49		—		49
WBZ Investment LLC	LLC interest	N/A	N/A	N/A	21	33		—		33
WBZ Investment LLC	LLC interest	N/A	N/A	N/A	18	27		—		27

See Notes to Consolidated Financial Statements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost		Percentage of Net Assets		Fair Value ⁽⁴⁾
Leisure, Amusement, Motion Pictures, Entertainment - (continued)
WBZ Investment LLC	LLC interest	N/A		N/A	N/A	15		$	24	—	%	$	24
WBZ Investment LLC	LLC interest	N/A		N/A	N/A	7		10		—		10
WBZ Investment LLC	LLC interest	N/A		N/A	N/A	1		1		—		1
								1,982		0.3		3,152
Personal and Non Durable Consumer Products (Mfg. Only)
Georgica Pine Clothiers, LLC	LLC units	N/A		N/A	N/A	11		106		—		176
Massage Envy, LLC	LLC interest	N/A		N/A	N/A	749		210		0.2		1,490
Team Technologies Acquisition Company	Common stock	N/A		N/A	N/A	—		114		—		292
								430		0.2		1,958
Personal, Food and Miscellaneous Services
Captain D's, LLC	LLC interest	N/A		N/A	N/A	70		70		—		64
Community Veterinary Partners, LLC	Common stock	N/A		N/A	N/A	2		244		—		310
PPV Intermediate Holdings II, LLC	LLC interest	N/A		N/A	N/A	13		13		—		13
R.G. Barry Corporation	Preferred stock	N/A		N/A	N/A	—		161		—		176
Ruby Slipper Cafe LLC, The	LLC units	N/A		N/A	N/A	12		123		—		151
Southern Veterinary Partners, LLC	LLC units	N/A		N/A	N/A	—		216		0.1		333
Southern Veterinary Partners, LLC	LLC units	N/A		N/A	N/A	64		2		—		24
Veterinary Specialists of North America, LLC	LLC units	N/A		N/A	N/A	—		106		—		185
Wetzel's Pretzels, LLC	Common stock	N/A		N/A	N/A	—		160		—		221
								1,095		0.1		1,477
Printing and Publishing
Brandmuscle, Inc.	LLC interest	N/A		N/A	N/A	—		240		—		166

Retail Stores
Batteries Plus Holding Corporation	LP interest	N/A		N/A	N/A	5		529		0.1		816
Cycle Gear, Inc.	LLC units	N/A		N/A	N/A	19		248		—		463
DTLR, Inc.	LLC interest	N/A		N/A	N/A	4		411		0.1		734
Elite Sportswear, L.P.	LLC interest	N/A		N/A	N/A	—		165		—		36
Feeders Supply Company, LLC	Preferred stock	N/A		N/A	N/A	2		192		—		241
Feeders Supply Company, LLC	Common stock	N/A		N/A	N/A	—		—		—		52
Marshall Retail Group LLC, The	LLC units	N/A		N/A	N/A	15		154		—		95
Paper Source, Inc.	Common stock	N/A		N/A	N/A	8		1,387		0.1		606
Pet Holdings ULC^(8)(10)	LP interest	N/A		N/A	N/A	455		386		0.1		537
								3,472		0.4		3,580

Total non-controlled/non-affiliate company equity investments								$	37,762	4.2	%	$	40,156

Total non-controlled/non-affiliate company investments						$	1,679,746	$	1,697,892	176.0	%	$	1,704,473

Non-controlled affiliate company investments⁽¹⁴⁾
Debt investments
Diversified/Conglomerate Service
Switchfly, LLC⁽⁸⁾	One stop	P + 2.00%	^(c)(f)	7.25%	04/2020	$	2,295	$	2,258	0.2	%	$	2,066
Switchfly, LLC⁽⁸⁾	One stop	P + 2.00%	^(f)	7.25%	06/2018	192		192		—		173
Switchfly, LLC⁽⁸⁾	One stop	P + 2.00%	^(f)	7.25%	04/2020	17		17		—		15
						2,504		2,467		0.2		2,254

See Notes to Consolidated Financial Statements.

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Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)



	Investment Type	Spread Above Index⁽¹⁾		Interest Rate⁽²⁾	Maturity Date	Principal ($) / Shares⁽³⁾		Amortized Cost		Percentage of Net Assets		Fair Value ⁽⁴⁾
Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc.*⁽⁸⁾	One stop	L + 10.00%	^(a)	10.24% cash/2.00% PIK	05/2019	$	4,257	$	4,255	0.4	%	$	4,257
Benetech, Inc.⁽⁸⁾	One stop	P + 8.75%	^(a)(f)	11.77% cash/2.00% PIK	05/2019	223		223		—		223
						4,480		4,478		0.4		4,480

Total non-controlled affiliate company debt investments						6,984		6,945		0.6	%	6,734

Equity Investments ^(11)(12)
Diversified/Conglomerate Service
Switchfly LLC⁽⁸⁾	LLC units	N/A		N/A	N/A	408		$	408	0.1	%	$	534
								408		0.1		534

Mining, Steel, Iron and Non-Precious Metals
Benetech, Inc.⁽⁸⁾	LLC interest	N/A		N/A	N/A	56		$	—	—		$	16
Benetech, Inc.⁽⁸⁾	LLC interest	N/A		N/A	N/A	56		—		—		—
								—		—		16

Total non-controlled affiliate company equity investments								$	408	0.1	%	$	550

Total non-controlled affiliate company investments						$	6,984	$	7,353	0.7	%	$	7,284

Controlled affiliate company investments⁽¹⁵⁾
Equity investments
Investment Funds and Vehicles
Senior Loan Fund LLC^(8)(16)	LLC interest	N/A		N/A	N/A	75,407		$	75,407	7.3	%	$	71,084

Total controlled affiliate company equity investments								$	75,407	7.3	%	$	71,084

Total investments						$	1,686,730	$	1,780,652	184.0	%	$	1,782,841

Cash and cash equivalents, foreign currencies and restricted cash and cash equivalents
Cash, foreign currencies and restricted cash								$	35,173	3.6	%	$	35,173
BlackRock Liquidity Funds T-Fund Institutional Shares (CUSIP 09248U718)				2.00% ⁽¹⁷⁾				10,532		1.1		10,532
Total cash and cash equivalents, foreign currencies and restricted cash and cash equivalents								$	45,705	4.7	%	$	45,705

Total investments and cash and cash equivalents, foreign currencies and restricted cash and cash equivalents								$	1,826,357	188.7	%	$	1,828,546



^*		Denotes that all or a portion of the investment collateralizes the MS Credit Facility (as defined in Note 6).
^{^}		Denotes that all or a portion of the investment secures the notes offered in the 2014 Debt Securitization (as defined in Note 6).
^#		Denotes that all or a portion of the investment collateralizes the Credit Facility (as defined in Note 6).

⁽¹⁾

The majority of the investments bear interest at a rate that may be determined by reference to LIBOR, EURIBOR or Prime and which reset daily, monthly, quarterly, semiannually, or annually. For each, the Company has provided the spread over LIBOR, EURIBOR or Prime and the weighted average current interest rate in effect as of September 30, 2018. Certain investments are subject to a LIBOR, EURIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable. Listed below are the index rates as of September 28, 2018, which was the last business day of the period on which LIBOR or EURIBOR was determined. The actual index rate for each loan listed may not be the applicable index rate outstanding as of September 28, 2018, as the loan may have priced or repriced based on an index rate prior to September 28, 2018.

^(a) Denotes that all or a portion of the loan was indexed to the 30-day LIBOR, which was 2.26% as of September 28, 2018.

^(b) Denotes that all or a portion of the loan was indexed to the 60-day LIBOR, which was 2.31% as of September 28, 2018.

See Notes to Consolidated Financial Statements.

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Golub Capital BDC, Inc. and Subsidiaries

Consolidated Schedule of Investments - (continued)

September 30, 2018

(In thousands)

^(c) Denotes that all or a portion of the loan was indexed to the 90-day LIBOR, which was 2.40% as of September 28, 2018.

^(d) Denotes that all or a portion of the loan was indexed to the 180-day LIBOR, which was 2.60% as of September 28, 2018.

^(e) Denotes that all or a portion of the loan was indexed to the 360-day LIBOR, which was 2.92% as of September 28, 2018.

^(f) Denotes that all or a portion of the loan was indexed to the Prime rate, which was 5.25% as of September 28, 2018.

^(g)Denotes that all or a portion of the loan was indexed to the 90-day EURIBOR, which was -0.32% as of September 28, 2018.


⁽²⁾	For portfolio companies with multiple interest rate contracts, the interest rate shown is a weighted average current interest rate in effect as of September 30, 2018.


⁽³⁾	The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.


⁽⁴⁾	The fair value of the investment was valued using significant unobservable inputs. See Note 5. Fair Value Measurements.


⁽⁵⁾	The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par. The negative amortized cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.


⁽⁶⁾	The entire commitment was unfunded as of September 30, 2018. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.


⁽⁷⁾	Loan was on non-accrual status as of September 30, 2018, meaning that the Company has ceased recognizing interest income on the loan.

⁽⁸⁾

The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company's total assets. As of September 30, 2018, total non-qualifying assets at fair value represented 5.8% of the Company's total assets calculated in accordance with the 1940 Act.


⁽⁹⁾	Loan is denominated in foreign currency and is translated into U.S. dollars as of the valuation date or the date of the transaction. See Note 2. Significant Accounting Policies and Recent Accounting Updates - Foreign Currency Transactions.


⁽¹⁰⁾	The headquarters of this portfolio company is located in Canada.


⁽¹¹⁾	Equity investments are non-income producing securities unless otherwise noted.


⁽¹²⁾	Ownership of certain equity investments may occur through a holding company or partnership.


⁽¹³⁾	The Company holds an equity investment that entitles it to receive preferential dividends.

⁽¹⁴⁾As defined in the 1940 Act, the Company is deemed to be an "affiliated person" of the portfolio company as the Company owns five percent or more of the portfolio company's voting securities ("non-controlled affiliate"). Transactions related to investments in non-controlled affiliates for the year ended September 30, 2018 were as follows:



Portfolio Company	Fair value as of September 30, 2017		Purchases (cost)^(h)		Redemptions (cost)			Transfer in (out)		Discount accretion		Net change in unrealized gain/(loss)		Fair value as of September 30, 2018		Net realized gain/(loss)		Interest and fee income		Dividend income
Benetech, Inc.	$	3,707	$	222	$	(551	)	$	—	$	1	$	1,117	$	4,496	$	—	$	638	$	—
Switchfly LLC⁽ⁱ⁾	—		254		—			2,120		25		389		2,788		—		29		—
Total Non-Controlled Affiliates	$	3,707	$	476	$	(551	)	$	2,120	$	26	$	1,506	$	7,284	$	—	$	667	$	—



^(h)	Purchases at cost includes amounts related to PIK interest capitalized and added to the principal balance of the respective loans.
⁽ⁱ⁾	During the three months ended September 30, 2018, the Company's ownership increased to over five percent of the portfolio company's voting securities.

⁽¹⁵⁾As defined in the 1940 Act, the Company is deemed to be both an "affiliated person" of and "control" this portfolio company as the Company owns more than 25% of the portfolio company's outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement) ("controlled affiliate"). Transactions related to investments in controlled affiliates for the year ended September 30, 2018 were as follows:



Portfolio Company	Fair value as of September 30, 2017		Purchases (cost)		Redemptions (cost)			Transfer in (out)		Discount accretion		Net change in unrealized gain/(loss)			Fair value as of September 30, 2018		Net realized gain/(loss)		Interest and fee income		Dividend income
Senior Loan Fund LLC^(j)	$	95,015	$	12,163	$	(34,213	)	$	—	$	—	$	(1,881	)	$	71,084	$	—	$	—	$	8,099
Total Controlled Affiliates	$	95,015	$	12,163	$	(34,213	)	$	—	$	—	$	(1,881	)	$	71,084	$	—	$	—	$	8,099



^(j)	Together with RGA, the Company co-invests through SLF. SLF is capitalized as transactions are completed and all portfolio and investment decisions in respect to SLF must be approved by the SLF investment committee consisting of two representatives of the Company and RGA (with unanimous approval required from (i) one representative of each of the Company and RGA or (ii) both representatives of each of the Company and RGA). Therefore, although the Company owns more than 25% of the voting securities of SLF, the Company does not have sole control over significant actions of SLF for purposes of the 1940 Act or otherwise.


⁽¹⁶⁾	The Company generally receives quarterly profit distributions from its equity investment in SLF. See Note 4. Investments.


⁽¹⁷⁾	The rate shown is the annualized seven-day yield as of September 30, 2018.

See Notes to Consolidated Financial Statements.

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Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

Note 1. Organization

Golub Capital BDC, Inc. (“GBDC” and, collectively with its subsidiaries, the “Company”) is an externally managed, closed-end, non-diversified management investment company. GBDC has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for U.S. federal income tax purposes, GBDC has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

The Company’s investment strategy is to invest primarily in one stop (a loan that combines characteristics of traditional first lien senior secured loans and second lien or subordinated loans and that are often referred to by other middle-market lenders as unitranche loans) and other senior secured loans of U.S. middle-market companies. The Company may also selectively invest in second lien and subordinated (a loan that ranks senior only to a borrower’s equity securities and ranks junior to all of such borrower’s other indebtedness in priority of payment) loans of, and warrants and minority equity securities in, U.S. middle-market companies. The Company has entered into an investment advisory agreement (the “Investment Advisory Agreement”) with GC Advisors LLC (the “Investment Adviser”), under which the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, the Company. Under an administration agreement (the “Administration Agreement”) the Company is provided with certain services by an administrator (the “Administrator”), which is currently Golub Capital LLC.

On November 27, 2018, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Golub Capital Investment Corporation, a Maryland corporation (“GCIC”), Fifth Ave Subsidiary Inc., a Maryland corporation and wholly owned subsidiary of the Company (“Merger Sub”), the Investment Adviser and, for certain limited purposes, the Administrator. The Merger Agreement provides that, subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into GCIC, with GCIC continuing as the surviving company and as a wholly-owned subsidiary of the Company (the “Initial Merger”) and, immediately thereafter, GCIC will merge with and into the Company, with the Company continuing as the surviving company (together with the Initial Merger, the “Merger”). Refer to Note 11. Pending Merger with Golub Capital Investment Corporation for discussion of the Merger.

Note 2. Significant Accounting Policies and Recent Accounting Updates

Basis of presentation: The Company is an investment company as defined in the accounting and reporting guidance under Accounting Standards Codification (“ASC”) Topic 946 — Financial Services — Investment Companies (“ASC Topic 946”).

The accompanying interim consolidated financial statements of the Company and related financial information have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6, 10 and 12 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications consisting solely of normal accruals that are necessary for the fair presentation of financial results as of and for the periods presented. All intercompany balances and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation. The unaudited interim consolidated financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto in the Company’s Form 10-K for the year ended September 30, 2018, as filed with the U.S. Securities and Exchange Commission (the “SEC”).

Fair value of financial instruments: The Company applies fair value to all of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurement (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.

The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less

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Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3.

Any changes to the valuation methodology are reviewed by management and the Company’s board of directors (the “Board”) to confirm that the changes are appropriate. As markets change, new products develop and the pricing for products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See further description of fair value methodology in Note 5. Fair Value Measurements.

Use of estimates: The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Consolidation: As provided under Regulation S-X and ASC Topic 946, the Company will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the results of the Company’s wholly-owned subsidiaries Golub Capital BDC 2010-1 Holdings LLC (“Holdings”), Golub Capital BDC 2010-1 LLC (“2010 Issuer”), Golub Capital BDC CLO 2014 LLC (“2014 Issuer”), Golub Capital BDC CLO III Depositor LLC (“2018 CLO Depositor”), Golub Capital BDC CLO III LLC (“2018 Issuer”), Golub Capital BDC Funding LLC (“Funding”), Golub Capital BDC Funding II LLC (“Funding II”), Golub Capital BDC Holdings, LLC (“BDC Holdings”), GC SBIC IV, L.P. (“SBIC IV”), GC SBIC V, L.P. (“SBIC V”) and GC SBIC VI, L.P. (“SBIC VI”). The Company does not consolidate its non-controlling interest in SLF. See further description of the Company’s investment in SLF in Note 4. Investments.

Assets related to transactions that do not meet ASC Topic 860 requirements for accounting sale treatment are reflected in the Company’s Consolidated Statements of Financial Condition as investments. Those assets are owned by special purpose entities, including BDC Holdings, 2010 Issuer, 2014 Issuer, 2018 Issuer, Funding and Funding II that are consolidated in the Company’s consolidated financial statements. The creditors of the special purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of GBDC (or any affiliate of GBDC).

Cash, cash equivalents and foreign currencies: Cash, cash equivalents and foreign currencies are highly liquid investments with an original maturity of three months or less at the date of acquisition. The Company deposits its cash in financial institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits.

Restricted cash and cash equivalents and restricted foreign currencies: Restricted cash and cash equivalents and restricted foreign currencies include amounts that are collected and are held by trustees who have been appointed as custodians of the assets securing certain of the Company’s financing transactions. Restricted cash and cash equivalents and restricted foreign currencies are held by the trustees for payment of interest expense and principal on the outstanding borrowings or reinvestment into new assets. In addition, restricted cash, cash equivalents and restricted foreign currencies include amounts held within the Company’s small business investment company (“SBIC”) subsidiaries. The amounts held within the SBICs are generally restricted to the originations of new loans by the SBICs and the payment of U.S. Small Business Administration (“SBA”) debentures and related interest expense.

Foreign currency translation: The Company’s books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:


(1)	cash and cash equivalents, restricted cash and cash equivalents, fair value of investments, interest receivable, and other assets and liabilities—at the spot exchange rate on the last business day of the period; and


(2)	purchases and sales of investments, income and expenses—at the exchange rates prevailing on the respective dates of such transactions.

Although net assets and fair values are presented based on the applicable foreign exchange rates described above, the Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in fair values of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Fluctuations arising from the translation of assets other than investments and liabilities are included with the net change in unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies on the Consolidated Statements of Operations.

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Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

Foreign security and currency transactions may involve certain considerations and risks not typically associated with investing in U.S. companies. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices more volatile than those of comparable U.S. companies or U.S. government securities.

Revenue recognition:

Investments and related investment income: Interest income is accrued based upon the outstanding principal amount and contractual interest terms of debt investments.

Loan origination fees, original issue discount and market discount or premium are capitalized, and the Company accretes or amortizes such amounts over the life of the loan as interest income. For the three and nine months ended June 30, 2019, interest income included $2,694 and $6,624, respectively, of accretion of discounts. For the three and nine months ended June 30, 2018, interest income included $2,350 and $7,420, respectively, of accretion of discounts. For the three and nine months ended June 30, 2019, the Company received loan origination fees of $3,475 and $8,127, respectively. For the three and nine months ended June 30, 2018, the Company received loan origination fees of $1,933 and $6,038, respectively.

For investments with contractual PIK interest, which represents contractual interest accrued and added to the principal balance that generally becomes due at maturity, the Company will not accrue PIK interest if the portfolio company valuation indicates that the PIK interest is not collectible. For the three and nine months ended June 30, 2019, the Company recorded PIK income of $293 and $683, respectively, and received PIK payments in cash of $0 and $41, respectively. For the three and nine months ended June 30, 2018, the Company recorded PIK income of $203 and $722, respectively, and received PIK payments in cash of $0 and $2, respectively.

In addition, the Company may generate revenue in the form of amendment, structuring or due diligence fees, fees for providing managerial assistance, consulting fees and prepayment premiums on loans. The Company records these fees as fee income when earned. All other income is recorded into income when earned. For the three and nine months ended June 30, 2019, fee income included $240 and $681, respectively, of prepayment premiums, which fees are non-recurring. For the three and nine months ended June 30, 2018, fee income included $346 and $1,312, respectively, of prepayment premiums, which fees are non-recurring.

For the three and nine months ended June 30, 2019, the Company received interest and fee income in cash, which excludes capitalized loan origination fees, in the amounts of $39,829 and $115,954, respectively. For the three and nine months ended June 30, 2018, the Company received interest and fee income in cash, which excludes capitalized loan origination fees, in the amounts of $34,961 and $96,924, respectively.

Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Each distribution received from limited liability company (“LLC”) and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

For the three and nine months ended June 30, 2019, excluding the Company's investment in LLC equity interests in SLF, the Company recorded dividend income of $59 and $117, respectively, and return of capital distributions, excluding the Company's investment in LLC equity interests in SLF, of $0 and $0, respectively. For the three and nine months ended June 30, 2019, the Company recorded dividend income of $0 and $0, respectively, and return of capital distributions of $0 and $2,275, respectively, from the Company's investment in LLC equity interests in SLF. For the three and nine months ended June 30, 2018, excluding the Company's investment in LLC equity interests in SLF, the Company recorded dividend income of $10 and $620, respectively, and return of capital distributions, excluding the Company's investment in LLC equity interests in SLF, of $0 and $373, respectively. For the three and nine months ended June 30, 2018, the Company recorded dividend income of $2,050 and $5,868, respectively, and return of capital distributions of $4,463 and $8,663, respectively, from the Company's investment in LLC equity interests in SLF.

Investment transactions are accounted for on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the amortized cost basis of investment, without regard to unrealized

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Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

gains or losses previously recognized. The Company reports current period changes in fair value of investments that are measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments and foreign currency translation in the Consolidated Statements of Operations.

Non-accrual loans: A loan may be left on accrual status during the period the Company is pursuing repayment of the loan. Management reviews all loans that become 90 days or more past due on principal and interest, or when there is reasonable doubt that principal or interest will be collected, for possible placement on non-accrual status. When a loan is placed on non-accrual status, unpaid interest credited to income is reversed. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, payments are likely to remain current. The total fair value of non-accrual loans was $7,094 and $5,625 as of June 30, 2019 and September 30, 2018, respectively.

Partial loan sales: The Company follows the guidance in ASC Topic 860 when accounting for loan participations and other partial loan sales. Such guidance requires a participation or other partial loan sale to meet the definition of a “participating interest”, as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest remain on the Company’s Consolidated Statements of Financial Condition and the proceeds are recorded as a secured borrowing until the definition is met. Secured borrowings are carried at fair value to correspond with the related investments, which are carried at fair value. See Note 5 Fair Value Measurements for additional information.

Income taxes: The Company has elected to be treated as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. In order to qualify and be subject to tax as a RIC, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute dividends for U.S. federal income tax purposes to its stockholders of an amount generally at least equal to 90% of investment company taxable income, as defined by the Code and determined without regard to any deduction for dividends paid, for each tax year. The Company has made, and intends to continue to make, the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal income taxes with respect to all income distributed to its stockholders.

Depending on the level of taxable income earned in a tax year, the Company may choose to retain taxable income in excess of current year dividend distributions and would distribute such taxable income in the next tax year. The Company may then be required to incur a 4% excise tax on such income. To the extent that the Company determines that it's estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. No U.S. federal excise tax was incurred for the three and nine months ended June 30, 2019 and 2018.

The Company accounts for income taxes in conformity with ASC Topic 740 — Income Taxes (“ASC Topic 740”). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense or tax benefit in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits in income tax expense. There were no material unrecognized tax benefits or unrecognized tax liabilities related to uncertain income tax positions through June 30, 2019. The Company's tax returns for the 2015 through 2018 tax years remain subject to examination by U.S. federal and most state tax authorities.

Dividends and distributions: Dividends and distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid out as a dividend or distribution is determined by the Board each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, are distributed at least annually, although the Company may decide to retain such capital gains for investment.

The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of any distributions the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, if the Board authorizes and the Company declares a cash distribution, then stockholders who participate in the DRIP will have their cash distribution reinvested in additional shares of the Company’s common stock, rather than receiving the cash distribution. The Company may use newly issued shares under the guidelines of the DRIP (if the Company’s shares are trading at a premium to net asset value), or the Company may purchase shares in the open market in connection with the obligations under the plan. In particular, if the Company’s shares are trading

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Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

at a significant discount to net asset value (“NAV”) and the Company is otherwise permitted under applicable law to purchase such shares, the Company intends to purchase shares in the open market in connection with any obligations under the DRIP.

In the event the market price per share of the Company’s common stock on the date of a distribution exceeds the most recently computed NAV per share of the common stock, the Company will issue shares of common stock to participants in the DRIP at the greater of the most recently computed NAV per share of common stock or 95% of the current market price per share of common stock (or such lesser discount to the current market price per share that still exceeds the most recently computed NAV per share of common stock).

Share repurchase plan: The Company has a share repurchase program (the “Program”) which allows the Company to repurchase the Company’s outstanding common stock on the open market at prices below the Company’s NAV as reported in its most recently published consolidated financial statements. The Board most recently reapproved the Program in August 2019 and the Program may be implemented at the discretion of management. The shares may be purchased from time to time at prevailing market prices, through open market transactions, including block transactions. Effective as of August 6, 2019, the Company may repurchase up to $150,000 fo the Company's common stock pursuant to the Program. Prior to such date, the Program permitted up to $75,000 of repurchases. The Company did not make any repurchases of its common stock during each of the three and nine months ended June 30, 2019 and June 30, 2018.

Deferred debt issuance costs: Deferred debt issuance costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings. As of June 30, 2019 and September 30, 2018, the Company had deferred debt issuance costs of $4,780 and $2,934, respectively. These amounts are amortized and included in interest expense in the Consolidated Statements of Operations over the estimated average life of the borrowings. Amortization expense for the three and nine months ended June 30, 2019, was $461 and $1,597, respectively. Amortization expense for the three and nine months ended June 30, 2018, was $807 and $2,242, respectively.

Accounting for derivative instruments: The Company does not utilize hedge accounting and marks its derivatives, if any, to market through a net change in unrealized appreciation (depreciation) on derivative instruments in the Consolidated Statements of Operations.

Securities Exchange Commission (“SEC”) Disclosure Update and Simplification: In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification (the "SEC Release"), amending certain disclosure requirements intended to facilitate the disclosure of information to investors and simplify compliance. The effective date for the SEC Release is for all filings on or after November 5, 2018. The Company first adopted the SEC Release for the fiscal year ended September 30, 2018. The SEC Release required presentation changes to the Company's Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Net Assets. Prior to adoption, the Company presented, in accordance with previous SEC rules, distributable earnings on the Consolidated Statements of Financial Condition, as three components: 1) undistributed net investment income; 2) net unrealized appreciation (depreciation) on investments; and 3) net realized gain (loss) on investments and presented distributions from distributable earnings on the Consolidated Statements of Changes in Net Assets as two components: 1) distributions from net investment income; and 2) distributions from realized gain. In accordance with the SEC Release, distributable earnings and distributions from distributable earnings are shown in total on the Consolidated Statements of Financial Condition and Consolidated Statements of Changes in Net Assets, respectively. The changes in presentation have been retrospectively applied to the Consolidated Statements of Changes in Net Assets for the nine months ended June 30, 2018.

The following table provides the reconciliation of the components of distributable earnings to conform to the current period presentation for the nine months ended June 30, 2018:



	Total increase (decrease) for the nine months ended June 30, 2018
	Undistributed Net Investment Income		Net Unrealized Appreciation (Depreciation) on Investments			Net Realized Gain (Loss) on Investments		Distributable Earnings
Net investment income	$	55,755	$	—		$	—	$	55,755
Net realized gain (loss) on investments and foreign currency transactions	—		—			14,702		14,702
Net change in unrealized gain (loss) on investments and foreign currency translation	—		(4,390		)	—		(4,390		)
Net increase in net assets from operations	$	55,755	$	(4,390	)	$	14,702	$	66,067

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

The following table provides the reconciliation of the components of distributions from distributable earnings to conform to the current period presentation for the nine months ended June 30, 2018:



	Total increase (decrease) for the nine months ended June 30, 2018
Distributions to stockholders:
Distributions from net investment income	$	(59,127	)
Distributions from realized gain	(2,979		)
Distributions from distributable earnings	$	(62,106	)

Note 3. Related Party Transactions

Investment Advisory Agreement: Under the Investment Advisory Agreement, the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, GBDC. The Board most recently reapproved the Investment Advisory Agreement in May 2019. The Investment Adviser is a registered investment adviser with the SEC. The Investment Adviser receives fees for providing services, consisting of two components, a base management fee and an Incentive Fee (as defined below).

The base management fee is calculated at an annual rate equal to 1.375% of average adjusted gross assets at the end of the two most recently completed calendar quarters (including assets purchased with borrowed funds and securitization-related assets, leverage, unrealized depreciation or appreciation on derivative instruments and cash collateral on deposit with custodian but adjusted to exclude cash and cash equivalents so that investors do not pay the base management fee on such assets) and is payable quarterly in arrears. Additionally, the Investment Adviser voluntarily excludes any assets funded with secured borrowing proceeds from the base management fee calculation. The base management fee is adjusted, based on the actual number of days elapsed relative to the total number of days in such calendar quarter, for any share issuances or repurchases during such calendar quarter. For purposes of the Investment Advisory Agreement, cash equivalents means U.S. government securities and commercial paper instruments maturing within 270 days of purchase (which is different than the GAAP definition, which defines cash equivalents as U.S. government securities and commercial paper instruments maturing within 90 days of purchase). To the extent that the Investment Adviser or any of its affiliates provides investment advisory, collateral management or other similar services to a subsidiary of the Company, the base management fee will be reduced by an amount equal to the product of (1) the total fees paid to the Investment Adviser by such subsidiary for such services and (2) the percentage of such subsidiary’s total equity, including membership interests and any class of notes not exclusively held by one or more third parties, that is owned, directly or indirectly, by the Company.

The Company has structured the calculation of the Incentive Fee to include a fee limitation such that an Incentive Fee for any quarter can only be paid to the Investment Adviser if, after such payment, the cumulative Incentive Fees paid to the Investment Adviser since April 13, 2010, the effective date of the Company’s election to become a BDC, would be less than or equal to 20.0% of the Company’s Cumulative Pre-Incentive Fee Net Income (as defined below).

The Company accomplishes this limitation by subjecting each quarterly Incentive Fee payable under the Income and Capital Gain Incentive Fee Calculation (as defined below) to a cap (the “Incentive Fee Cap”). The Incentive Fee Cap in any quarter is equal to the difference between (a) 20.0% of Cumulative Pre-Incentive Fee Net Income and (b) cumulative Incentive Fees of any kind paid to the Investment Adviser by GBDC since April 13, 2010. To the extent the Incentive Fee Cap is zero or a negative value in any quarter, no Incentive Fee would be payable in that quarter. If, for any relevant period, the Incentive Fee Cap calculation results in the Company paying less than the amount of the Incentive Fee calculated above, then the difference between the Incentive Fee and the Incentive Fee Cap will not be paid by GBDC and will not be received by the Investment Adviser as an Incentive Fee either at the end of such relevant period or at the end of any future period. “Cumulative Pre-Incentive Fee Net Income” is equal to the sum of (a) Pre-Incentive Fee Net Investment Income (as defined below) for each period since April 13, 2010 and (b) cumulative aggregate realized capital gains, cumulative aggregate realized capital losses, cumulative aggregate unrealized capital depreciation and cumulative aggregate unrealized capital appreciation since April 13, 2010.

“Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the calendar quarter (including the base management fee, taxes, any expenses payable under the Investment Advisory Agreement and the Administration Agreement, any expenses of securitizations and any interest expense and dividends paid on any outstanding preferred stock, but excluding the Incentive Fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

deferred interest feature such as market discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities, accrued income that the Company has not yet received in cash.

Incentive Fees are calculated and payable quarterly in arrears (or, upon termination of the Investment Advisory Agreement, as of the termination date).

The income and capital gains incentive fee calculation (the “Income and Capital Gain Incentive Fee Calculation”) has two parts, the income component (the “Income Incentive Fee”) and the capital gains component (the “Capital Gain Incentive Fee” and, together with the Income Incentive Fee, the “Incentive Fee”). The Income Incentive Fee is calculated quarterly in arrears based on the Company’s Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter.

For the three and nine months ended June 30, 2019, the Income Incentive Fee incurred was $3,501 and $9,697, respectively. For the three and nine months ended June 30, 2018, the Income Incentive Fee incurred was $2,832 and $7,181, respectively.

Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Because of the structure of the Income Incentive Fee, it is possible that an Incentive Fee may be calculated under this formula with respect to a period in which the Company has incurred a loss. For example, if the Company receives Pre-Incentive Fee Net Investment Income in excess of the hurdle rate (as defined below) for a calendar quarter, the Income Incentive Fee will result in a positive value and an Incentive Fee will be paid even if the Company has incurred a loss in such period due to realized and/or unrealized capital losses unless the payment of such Incentive Fee would cause the Company to pay Incentive Fees on a cumulative basis that exceed the Incentive Fee Cap. Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any Incentive Fees payable during the period) at the end of the immediately preceding calendar quarter, is compared to a fixed “hurdle rate” of 2.0% quarterly. If market interest rates rise, the Company may be able to invest funds in debt instruments that provide for a higher return, which would increase Pre-Incentive Fee Net Investment Income and make it easier for the Investment Adviser to surpass the fixed hurdle rate and receive an Incentive Fee based on such net investment income.

The Company’s Pre-Incentive Fee Net Investment Income used to calculate this part of the Incentive Fee is also included in the amount of its total assets (excluding cash and cash equivalents but including assets purchased with borrowed funds and securitization-related assets, unrealized depreciation or appreciation on derivative instruments and cash collateral on deposit with custodian) used to calculate the 1.375% base management fee annual rate.

The Company calculates the Income Incentive Fee with respect to its Pre-Incentive Fee Net Investment Income quarterly, in arrears, as follows:


•	Zero in any calendar quarter in which the Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate;

•

100% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.5% in any calendar quarter. This portion of the Company’s Pre-Incentive Fee Net Investment Income (which exceeds the hurdle rate but is less than 2.5%) is referred to as the “catch-up” provision. The catch-up is meant to provide the Investment Adviser with 20.0% of the Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply if the Company’s Pre-Incentive Fee Net Investment Income exceeds 2.5% in any calendar quarter; and


•	20.0% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.5% in any calendar quarter.

The Capital Gain Incentive Fee equals (a) 20.0% of the Company’s Capital Gain Incentive Fee Base (as defined below), if any, calculated in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), which commenced with the calendar year ending December 31, 2010, less (b) the aggregate amount of any previously paid Capital Gain Incentive Fees. The Company’s “Capital Gain Incentive Fee Base” equals (1) the sum of (i) realized capital gains, if any, on a cumulative positive basis from the date the Company elected to become a BDC through the end of each calendar year, (ii) all realized capital losses on a cumulative basis and (iii) all unrealized capital depreciation on a cumulative basis less (2) all unamortized deferred debt issuance costs, if and to the extent such costs exceed all unrealized capital appreciation on a cumulative basis.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)


•	The cumulative aggregate realized capital losses are calculated as the sum of the amounts by which (a) the net sales price of each investment in the Company’s portfolio when sold is less than (b) the accreted or amortized cost basis of such investment.


•	The cumulative aggregate realized capital gains are calculated as the sum of the differences, if positive, between (a) the net sales price of each investment in the Company’s portfolio when sold and (b) the accreted or amortized cost basis of such investment.


•	The aggregate unrealized capital depreciation is calculated as the sum of the differences, if negative, between (a) the valuation of each investment in the Company’s portfolio as of the applicable Capital Gain Incentive Fee calculation date and (b) the accreted or amortized cost basis of such investment.

In accordance with GAAP, the Company also is required to include the aggregate unrealized capital appreciation on investments in the calculation and accrue a capital gain incentive fee on a quarterly basis as if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Advisory Agreement. If the Capital Gain Incentive Fee Base, adjusted as required by GAAP to include unrealized capital appreciation, is positive at the end of a period, then GAAP requires the Company to accrue a capital gain incentive fee equal to 20% of such amount, less the aggregate amount of the actual Capital Gain Incentive Fees paid and capital gain incentive fees accrued under GAAP in all prior periods. If such amount is negative, then there is no accrual for such period. The resulting accrual under GAAP in a given period may result in additional expense if such cumulative amount is greater than in the prior period or a reversal of previously recorded expense if such cumulative amount is less than in the prior period. There can be no assurance that such unrealized capital appreciation will be realized in the future. For the three months ended June 30, 2019, the Company accrued a capital gain incentive fee of $28. For the nine months ended June 30, 2019, the Company had a reversal of the accrual of the capital gain incentive fee of $1,119. For the three and nine months ended June 30, 2018, the Company accrued a capital gain incentive fee of $741 and $2,274, respectively. Changes in the accrual for the capital gain incentive fee are included in incentive fee in the Consolidated Statements of Operations. As of June 30, 2019 and September 30, 2018, included in management and incentive fees payable on the Consolidated Statements of Financial Condition were $4,462 and $7,158, respectively, for cumulative accruals for capital gain incentive fees under GAAP, including the amounts payable pursuant to the Investment Advisory Agreement described above.

As of June 30, 2019 and September 30, 2018 the Capital Gain Incentive Fee payable as calculated under the Investment Advisory Agreement (as described above) was $0 and $2,303, respectively. Any payment due under the terms of the Investment Advisory Agreement is calculated in arrears at the end of each calendar year. The Company paid $1,578 and $1,196 of Capital Gain Incentive Fee calculated in accordance with the Investment Advisory Agreement as of December 31, 2018 and December 31, 2017, respectively. The Company did not pay any capital gain incentive fee under the Investment Advisory Agreement for any period ended prior to December 31, 2017.

The sum of the Income Incentive Fee and the Capital Gain Incentive Fee is the “Incentive Fee.”

Administration Agreement: Under the Administration Agreement, the Administrator furnishes the Company with office facilities and equipment, provides the Company with clerical, bookkeeping and record keeping services at such facilities and provides the Company with other administrative services as the Administrator, subject to review by the Board, determines necessary to conduct the Company’s day-to-day operations. The Company reimburses the Administrator the allocable portion of overhead and other expenses incurred by it in performing its obligations under the Administration Agreement, including rent, fees and expenses associated with performing compliance functions and the Company's allocable portion of the cost of its chief financial officer and chief compliance officer and their respective staffs. The Board reviews such expenses to determine that these expenses, including any allocation of expenses among the Company and other entities for which the Administrator provides similar services, are reasonable and comparable to administrative services charged by unaffiliated third party asset managers. Under the Administration Agreement, the Administrator also provides, on the Company’s behalf, managerial assistance to those portfolio companies to which the Company is required to provide such assistance and will be paid an additional amount based on the cost of the services provided, which amount shall not exceed the amount the Company receives from such portfolio companies.

Included in accounts payable and accrued expenses is $680 and $616 as of June 30, 2019 and September 30, 2018, respectively, for accrued allocated shared services under the Administration Agreement.

Other related party transactions: The Administrator pays for certain unaffiliated third-party expenses incurred by the Company. Such expenses include postage, printing, office supplies, rating agency fees and professional fees. These expenses are not marked-up and represent the same amount the Company would have paid had the Company paid the expenses directly. These expenses are subsequently reimbursed in cash.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

Total expenses reimbursed to the Administrator during the three and nine months ended June 30, 2019 were $338 and $1,547, respectively. Total expenses reimbursed to the Administrator during the three and nine months ended June 30, 2018 were $410 and $1,730, respectively.

As of June 30, 2019 and September 30, 2018, included in accounts payable and accrued expenses were $1,265 and $364, respectively, for accrued expenses paid on behalf of the Company by the Administrator.

On June 22, 2016, the Company entered into an unsecured revolving credit facility with the Investment Adviser, (as amended, the "Adviser Revolver"), with a maximum credit limit of $20,000 and expiration date of June 22, 2019. On June 21, 2019, the Company entered into an amendment to the Adviser Revolver to, among other things, (a) extend the maturity date from June 22, 2019 to June 21, 2022 and (b) increase the borrowing capacity from $20,000 to $40,000. Refer to Note 6. Borrowings for discussion of the Adviser Revolver.

During the three and nine months ended June 30, 2019, the Company did not sell any investments or unfunded commitments to SLF. During the three and nine months ended June 30, 2018, the Company sold $0 and $6,191, respectively, of investments and unfunded commitments to SLF at fair value and recognized $0 and $20, respectively, of net realized gains.

During the three and nine months ended June 30, 2019, SLF incurred an administrative service fee of $65 and $209, respectively. During the three and nine months ended June 30, 2018, SLF incurred an administrative service fee of $119 and $340, respectively.

On November 27, 2018, the Company entered into the Merger Agreement with GCIC, Merger Sub, the Investment Adviser and, for certain limited purposes, the Administrator. Refer to Note 11. Pending Merger with Golub Capital Investment Corporation for discussion of the Merger.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

Note 4. Investments

Investments as of June 30, 2019 and September 30, 2018 consisted of the following:



	As of June 30, 2019						As of September 30, 2018
	Principal		Amortized Cost		Fair Value		Principal		Amortized Cost		Fair Value
Senior secured	$	268,417	$	266,005	$	264,915	$	233,064	$	230,846	$	231,169
One stop	1,549,120		1,530,684		1,529,670		1,443,980		1,426,640		1,430,196
Second lien	10,965		10,856		10,928		9,435		9,338		9,435
Subordinated debt	171		167		171		251		251		251
LLC equity interests in SLF⁽¹⁾	N/A		74,882		71,742		N/A		75,407		71,084
Equity	N/A		37,247		45,395		N/A		38,170		40,706
Total	$	1,828,673	$	1,919,841	$	1,922,821	$	1,686,730	$	1,780,652	$	1,782,841


⁽¹⁾	SLF’s proceeds from the LLC equity interests invested in SLF were utilized by SLF to invest in senior secured loans.

The following tables show the portfolio composition by geographic region at amortized cost and fair value as a percentage of total investments in portfolio companies. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business.



	As of June 30, 2019				As of September 30, 2018
Amortized Cost:
United States
Mid-Atlantic	$	391,286	20.4	%	$	354,662	19.9	%
Midwest	391,868		20.4		370,239		20.8
West	369,902		19.3		306,052		17.2
Southeast	433,595		22.6		422,844		23.7
Southwest	194,395		10.1		186,468		10.5
Northeast	92,374		4.8		125,329		7.0
Canada	35,574		1.8		15,058		0.9
United Kingdom	9,693		0.5		—		—
Australia	1,154		0.1		—		—
Total	$	1,919,841	100.0	%	$	1,780,652	100.0	%

Fair Value:
United States
Mid-Atlantic	$	388,916	20.2	%	$	347,560	19.5	%
Midwest	391,945		20.4		371,141		20.8
West	368,007		19.1		306,074		17.2
Southeast	439,235		22.8		428,235		24.0
Southwest	195,681		10.2		189,379		10.6
Northeast	92,291		4.8		125,051		7.0
Canada	35,907		1.9		15,401		0.9
United Kingdom	9,670		0.5		—		—
Australia	1,169		0.1		—		—
Total	$	1,922,821	100.0	%	$	1,782,841	100.0	%

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

The industry compositions of the portfolio at amortized cost and fair value as of June 30, 2019 and September 30, 2018 were as follows:



	As of June 30, 2019				As of September 30, 2018
Amortized Cost:
Aerospace and Defense	$	59,037	3.1	%	$	51,288	2.9	%
Automobile	24,613		1.3		18,934		1.1
Beverage, Food and Tobacco	97,867		5.1		99,594		5.6
Broadcasting and Entertainment	1,434		0.1		1,444		0.1
Buildings and Real Estate	62,895		3.3		63,109		3.5
Chemicals, Plastics and Rubber	10,323		0.5		10,277		0.6
Diversified/Conglomerate Manufacturing	57,544		3.0		96,892		5.4
Diversified/Conglomerate Service	638,777		33.3		460,166		25.8
Ecological	18,972		1.0		18,852		1.1
Electronics	110,654		5.8		130,457		7.3
Finance	4,770		0.2		—		—
Grocery	291		0.0	*	16,203		0.9
Healthcare, Education and Childcare	370,227		19.3		337,499		19.0
Home and Office Furnishings, Housewares, and Durable Consumer	13,051		0.7		12,861		0.7
Hotels, Motels, Inns, and Gaming	—		—		15,383		0.9
Insurance	53,699		2.8		45,865		2.6
Investment Funds and Vehicles	74,882		3.9		75,407		4.2
Leisure, Amusement, Motion Pictures, Entertainment	80,381		4.2		80,302		4.5
Mining, Steel, Iron and Non-Precious Metals	4,570		0.2		4,478		0.3
Oil and Gas	14,327		0.7		14,211		0.8
Personal and Non Durable Consumer Products (Mfg. Only)	35,616		1.9		68,129		3.8
Personal, Food and Miscellaneous Services	32,305		1.7		31,526		1.8
Printing and Publishing	4,206		0.2		4,200		0.2
Retail Stores	133,035		6.9		111,550		6.3
Telecommunications	5,776		0.3		6,310		0.3
Textiles and Leather	2,185		0.1		2,196		0.1
Utilities	8,404		0.4		3,519		0.2
Total	$	1,919,841	100.0	%	$	1,780,652	100.0	%

* Represents an amount less than 0.1%.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)



	As of June 30, 2019				As of September 30, 2018
Fair Value:
Aerospace and Defense	$	57,983	3.0	%	$	47,891	2.7	%
Automobile	24,995		1.3		19,158		1.1
Beverage, Food and Tobacco	99,109		5.2		99,608		5.6
Broadcasting and Entertainment	1,436		0.1		1,447		0.1
Buildings and Real Estate	64,867		3.4		65,255		3.7
Chemicals, Plastics and Rubber	10,454		0.5		10,356		0.6
Diversified/Conglomerate Manufacturing	57,031		3.0		96,663		5.4
Diversified/Conglomerate Service	644,546		33.5		466,037		26.1
Ecological	19,304		1.0		19,148		1.1
Electronics	109,255		5.7		130,472		7.3
Finance	4,779		0.2		—		—
Grocery	270		0.0	*	14,629		0.8
Healthcare, Education and Childcare	364,667		19.0		333,736		18.7
Home and Office Furnishings, Housewares, and Durable Consumer	12,776		0.7		12,831		0.7
Hotels, Motels, Inns, and Gaming	—		—		15,592		0.9
Insurance	54,868		2.8		47,041		2.6
Investment Funds and Vehicles	71,742		3.7		71,084		4.0
Leisure, Amusement, Motion Pictures, Entertainment	81,038		4.2		81,907		4.6
Mining, Steel, Iron and Non-Precious Metals	4,315		0.2		4,496		0.3
Oil and Gas	14,433		0.8		14,340		0.8
Personal and Non Durable Consumer Products (Mfg. Only)	37,506		2.0		69,912		3.9
Personal, Food and Miscellaneous Services	32,879		1.7		32,253		1.8
Printing and Publishing	4,122		0.2		4,167		0.2
Retail Stores	133,975		7.0		112,738		6.3
Telecommunications	5,837		0.3		6,393		0.4
Textiles and Leather	2,163		0.1		2,134		0.1
Utilities	8,471		0.4		3,553		0.2
Total	$	1,922,821	100.0	%	$	1,782,841	100.0	%

* Represents an amount less than 0.1%.

Senior Loan Fund LLC:

The Company co-invests with RGA in senior secured loans through SLF, an unconsolidated Delaware LLC. SLF is capitalized as transactions are completed and all portfolio and investment decisions in respect of SLF must be approved by the SLF investment committee consisting of two representatives of each of the Company and RGA (with unanimous approval required from (i) one representative of each of the Company and RGA or (ii) both representatives of each of the Company and RGA). SLF may cease making new investments upon notification of either member but operations will continue until all investments have been sold or paid-off in the normal course of business. Investments held by SLF are measured at fair value using the same valuation methodologies as described in Note 5.

As of June 30, 2019 and September 30, 2018, SLF was capitalized by LLC equity interest subscriptions from its members. As of June 30, 2019 and September 30, 2018, the Company and RGA owned 87.5% and 12.5%, respectively, of the LLC equity interests of SLF. SLF’s profits and losses are allocated to the Company and RGA in accordance with their respective ownership interests.

SLF has entered into a senior secured revolving credit facility (as amended, the “SLF Credit Facility”) with Wells Fargo Bank, N.A., through its wholly-owned subsidiary Senior Loan Fund II LLC (“SLF II”), which as of June 30, 2019 allowed SLF II to borrow up to $77,138 at any one time outstanding, subject to leverage and borrowing base restrictions. The reinvestment period of the SLF Credit Facility ended August 29, 2018, and after such date, the maximum commitment is equal to advances outstanding. The stated maturity date is August 30, 2022. As of June 30, 2019 and September 30, 2018, SLF II had outstanding debt under the SLF Credit Facility of $77,138 and $104,622, respectively. As of June 30, 2019, the SLF Credit Facility bears interest at one-month LIBOR plus 2.05% per annum.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

As of June 30, 2019 and September 30, 2018, SLF had the following commitments from its members (in the aggregate):



	As of June 30, 2019				As of September 30, 2018
	Committed		Funded⁽¹⁾		Committed		Funded⁽¹⁾
LLC equity commitments	$	200,000	$	85,580	$	200,000	$	86,180
Total	$	200,000	$	85,580	$	200,000	$	86,180


⁽¹⁾	Funded LLC equity commitments are presented net of return of capital distributions subject to recall.

As of June 30, 2019 and September 30, 2018, SLF had total assets at fair value of $159,520 and $186,326, respectively. As of June 30, 2019, SLF had seven portfolio company investments in three portfolio companies on non-accrual status with a fair value of $8,509. As of September 30, 2018, SLF had two portfolio company investments in one portfolio company on non-accrual status with a fair value of $3,856. The portfolio companies in SLF are in industries and geographies similar to those in which the Company may invest directly. Additionally, as of June 30, 2019 and September 30, 2018, SLF had commitments to fund various undrawn revolvers and delayed draw investments to its portfolio companies totaling $4,465 and $5,920, respectively.

Below is a summary of SLF’s senior secured loan portfolio, followed by a listing of the individual investments in SLF’s portfolio as of June 30, 2019 and September 30, 2018:



	As of June 30, 2019			As of September 30, 2018
Senior secured loans⁽¹⁾	$	165,211		$	183,668
Weighted average current interest rate on senior secured loans⁽²⁾	7.6		%	7.5		%
Number of borrowers in SLF	28			32
Largest portfolio company investments⁽¹⁾	$	12,688		$	13,716
Total of five largest portfolio company investments⁽¹⁾	$	55,288		$	57,330


⁽¹⁾	At principal amount.


⁽²⁾	Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at principal amount.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)



SLF Investment Portfolio as of June 30, 2019
Portfolio Company	Business Description	Security Type	Maturity Date	Current Interest Rate⁽¹⁾	Principal ($) / Shares⁽²⁾		Fair Value⁽³⁾
Polk Acquisition Corp.⁽⁴⁾	Automobile	Senior loan	06/2022	7.6%	$	4,477	$	4,388
Polk Acquisition Corp.	Automobile	Senior loan	06/2022	7.9	90		88
Polk Acquisition Corp.	Automobile	Senior loan	06/2022	7.6	52		51
Rubio's Restaurants, Inc ⁽⁴⁾	Beverage, Food and Tobacco	Senior loan	10/2019	7.6	4,902		4,804
Jensen Hughes, Inc.	Buildings and Real Estate	Senior loan	03/2024	6.6	2,282		2,282
Jensen Hughes, Inc.	Buildings and Real Estate	Senior loan	03/2024	6.6	119		119
Jensen Hughes, Inc.	Buildings and Real Estate	Senior loan	03/2024	6.6	63		63
Paradigm DKD Group, LLC⁽⁵⁾	Buildings and Real Estate	Senior loan	05/2020	10.5	1,951		781
Paradigm DKD Group, LLC⁽⁵⁾	Buildings and Real Estate	Senior loan	05/2020	10.5	596		238
Flexan, LLC	Chemicals, Plastics and Rubber	Senior loan	02/2020	8.1	5,920		5,920
Flexan, LLC	Chemicals, Plastics and Rubber	Senior loan	02/2020	8.1	1,644		1,644
Flexan, LLC⁽⁴⁾	Chemicals, Plastics and Rubber	Senior loan	02/2020	10.0	520		520
Pasternack Enterprises, Inc. and Fairview Microwave, Inc⁽⁴⁾	Diversified/Conglomerate Manufacturing	Senior loan	07/2025	6.3	5,278		5,278
DISA Holdings Acquisition Subsidiary Corp.⁽⁴⁾	Diversified/Conglomerate Service	Senior loan	06/2022	6.7	4,785		4,785
DISA Holdings Acquisition Subsidiary Corp.⁽⁴⁾	Diversified/Conglomerate Service	Senior loan	06/2022	6.9	248		248
III US Holdings, LLC	Diversified/Conglomerate Service	Senior loan	09/2022	8.3	4,488		4,488
Mediaocean LLC	Diversified/Conglomerate Service	Senior loan	08/2020	N/A⁽⁶⁾	—		—
Gamma Technologies, LLC⁽⁴⁾	Electronics	Senior loan	06/2024	7.7	10,109		10,109
SEI, Inc.⁽⁴⁾	Electronics	Senior loan	07/2023	7.2	12,611		12,611
SEI, Inc.	Electronics	Senior loan	07/2023	N/A⁽⁶⁾	—		—
Teasdale Quality Foods, Inc.	Grocery	Senior loan	10/2020	8.3	4,213		3,876
Teasdale Quality Foods, Inc.	Grocery	Senior loan	10/2020	8.3	3,303		3,038
Teasdale Quality Foods, Inc.	Grocery	Senior loan	10/2020	8.3	586		539
Teasdale Quality Foods, Inc.	Grocery	Senior loan	10/2020	8.3	438		403
Teasdale Quality Foods, Inc.	Grocery	Senior loan	10/2020	8.3	216		199
Advanced Pain Management Holdings, Inc.⁽⁵⁾	Healthcare, Education and Childcare	Senior loan	12/2019	7.3	6,172		3,086
Advanced Pain Management Holdings, Inc.⁽⁵⁾	Healthcare, Education and Childcare	Senior loan	12/2019	10.8	2,139		4
Advanced Pain Management Holdings, Inc.⁽⁵⁾	Healthcare, Education and Childcare	Senior loan	12/2019	7.3	422		211
Advanced Pain Management Holdings, Inc.⁽⁵⁾⁽⁷⁾	Healthcare, Education and Childcare	Senior loan	12/2019	7.3	193		(212		)
CLP Healthcare Services, Inc.	Healthcare, Education and Childcare	Senior loan	12/2020	7.7	8,437		8,437
CLP Healthcare Services, Inc.	Healthcare, Education and Childcare	Senior loan	12/2020	7.7	4,251		4,251
Joerns Healthcare, LLC⁽⁴⁾⁽⁵⁾	Healthcare, Education and Childcare	Senior loan	05/2020	8.5	8,002		4,401
Joerns Healthcare, LLC⁽⁴⁾	Healthcare, Education and Childcare	Senior loan	10/2019	8.4	743		743
Joerns Healthcare, LLC⁽⁴⁾	Healthcare, Education and Childcare	Senior loan	10/2019	8.4	743		743
Pyramid Healthcare, Inc.⁽⁴⁾	Healthcare, Education and Childcare	Senior loan	08/2020	8.8	10,073		10,073
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior loan	08/2020	8.9	147		147
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior loan	08/2020	9.0	99		99
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior loan	08/2020	N/A⁽⁶⁾	—		—
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior loan	12/2020	7.69% cash/1.00% PIK	4,341		3,907
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior loan	12/2020	8.7	70		62
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior loan	12/2020	8.7	64		57
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior loan	12/2020	8.7	45		40
Upstream Intermediate, LLC	Healthcare, Education and Childcare	Senior loan	01/2024	6.4	2,809		2,809

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)



SLF Investment Portfolio as of June 30, 2019 - (continued)
Portfolio Company	Business Description	Security Type	Maturity Date	Current Interest Rate⁽¹⁾	Principal ($) / Shares⁽²⁾		Fair Value⁽³⁾
WHCG Management, LLC ⁽⁴⁾	Healthcare, Education and Childcare	Senior loan	03/2023	7.3%	$	7,840	$	7,370
WIRB-Copernicus Group, Inc.⁽⁴⁾	Healthcare, Education and Childcare	Senior loan	08/2022	6.6	5,567		5,567
1A Smart Start LLC⁽⁴⁾	Home and Office Furnishings, Housewares, and Durable Consumer	Senior loan	02/2022	6.8	2,969		2,969
RSC Acquisition, Inc.⁽⁴⁾	Insurance	Senior loan	11/2022	6.6	3,795		3,795
RSC Acquisition, Inc.⁽⁴⁾	Insurance	Senior loan	11/2021	N/A⁽⁶⁾	—		—
Self Esteem Brands, LLC ⁽⁴⁾	Leisure, Amusement, Motion Pictures, Entertainment	Senior loan	02/2022	6.7	9,561		9,561
Self Esteem Brands, LLC ⁽⁴⁾	Leisure, Amusement, Motion Pictures, Entertainment	Senior loan	02/2022	N/A⁽⁶⁾	—		—
W3 Co.	Oil and Gas	Senior loan	03/2022	8.4	1,244		1,235
Captain D's, LLC⁽⁴⁾	Personal, Food and Miscellaneous Services	Senior loan	12/2023	6.9	2,440		2,391
Captain D's, LLC⁽⁴⁾	Personal, Food and Miscellaneous Services	Senior loan	12/2023	7.4	12		11
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior loan	10/2021	7.8	2,398		2,398
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior loan	10/2021	7.8	1,206		1,206
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior loan	10/2021	7.8	58		58
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior loan	10/2021	7.8	40		40
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior loan	10/2021	N/A⁽⁶⁾	—		—
Brandmuscle, Inc.	Printing and Publishing	Senior loan	12/2021	7.1	4,418		4,414
Brandmuscle, Inc.	Printing and Publishing	Senior loan	12/2021	N/A⁽⁶⁾	—		—
Boot Barn, Inc.⁽⁴⁾	Retail Stores	Senior loan	06/2023	6.8	6,022		6,022
Total senior loan investments					$	165,211	$	152,367

W3 Co.⁽⁸⁾⁽⁹⁾	Oil and Gas	LLC units	N/A	N/A	3		1,219
W3 Co.⁽⁸⁾⁽⁹⁾	Oil and Gas	Preferred stock	N/A	N/A	—		200
Total equity investments							$	1,419

Total investments					$	165,211	$	153,786


⁽¹⁾	Represents the weighted average annual current interest rate as of June 30, 2019. All interest rates are payable in cash.


⁽²⁾	The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.


⁽³⁾	Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board's valuation process described elsewhere herein.


⁽⁴⁾	The Company also holds a portion of the first lien senior secured loan in this portfolio company.


⁽⁵⁾	Loan was on non-accrual status as of June 30, 2019. As such, no interest is being earned on this investment.


⁽⁶⁾	The entire commitment was unfunded as of June 30, 2019. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.


⁽⁷⁾	The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par.


⁽⁸⁾	Equity investment received as a result of the portfolio company's debt restructuring.


⁽⁹⁾	Non-income producing.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)



SLF Investment Portfolio as of September 30, 2018
Portfolio Company	Business Description	Security Type	Maturity Date	Current Interest Rate⁽¹⁾		Principal ($) / Shares ⁽²⁾		Fair Value⁽³⁾
1A Smart Start LLC	Home and Office Furnishings, Housewares, and Durable Consumer	Senior Loan	02/2022	7.0	%	$	2,073	$	2,084
1A Smart Start LLC⁽⁴⁾	Home and Office Furnishings, Housewares, and Durable Consumer	Senior Loan	02/2022	6.7		922		924
Advanced Pain Management Holdings, Inc.⁽⁵⁾	Healthcare, Education and Childcare	Senior Loan	11/2018	7.2		6,561		3,609
Advanced Pain Management Holdings, Inc.⁽⁵⁾	Healthcare, Education and Childcare	Senior Loan	11/2018	7.2		449		247
Boot Barn, Inc.	Retail Stores	Senior Loan	06/2021	6.9		9,533		9,533
Brandmuscle, Inc.	Printing and Publishing	Senior Loan	12/2021	7.1		4,678		4,674
Captain D's, LLC⁽⁴⁾	Personal, Food and Miscellaneous Services	Senior Loan	12/2023	7.9		13		13
Captain D's, LLC⁽⁴⁾	Personal, Food and Miscellaneous Services	Senior Loan	12/2023	6.7		2,499		2,499
CLP Healthcare Services, Inc.	Healthcare, Education and Childcare	Senior Loan	12/2020	7.9		8,502		8,332
CLP Healthcare Services, Inc.	Healthcare, Education and Childcare	Senior Loan	12/2020	7.9		4,284		4,198
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior Loan	10/2021	7.9		2,417		2,417
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior Loan	10/2021	7.9		1,215		1,215
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior Loan	10/2021	7.9		40		40
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior Loan	10/2021	7.9		58		58
DISA Holdings Acquisition Subsidiary Corp.⁽⁴⁾	Diversified/Conglomerate Service	Senior Loan	06/2022	6.1		71		71
DISA Holdings Acquisition Subsidiary Corp.⁽⁴⁾	Diversified/Conglomerate Service	Senior Loan	06/2022	6.1		4,821		4,821
Encore GC Acquisition, LLC	Healthcare, Education and Childcare	Senior Loan	01/2020	7.5		4,540		4,540
Flexan, LLC⁽⁴⁾	Chemicals, Plastics and Rubber	Senior Loan	02/2020	9.8		304		304
Flexan, LLC	Chemicals, Plastics and Rubber	Senior Loan	02/2020	8.1		5,967		5,967
Flexan, LLC	Chemicals, Plastics and Rubber	Senior Loan	02/2020	8.1		1,657		1,657
Gamma Technologies, LLC⁽⁴⁾	Electronics	Senior Loan	06/2024	7.7		10,186		10,186
III US Holdings, LLC	Diversified/Conglomerate Service	Senior Loan	09/2022	9.0		4,927		4,927
Jensen Hughes, Inc.	Buildings and Real Estate	Senior Loan	03/2024	6.7		2,293		2,293
Jensen Hughes, Inc.	Buildings and Real Estate	Senior Loan	03/2024	6.7		119		119
Jensen Hughes, Inc.	Buildings and Real Estate	Senior Loan	03/2024	6.7		64		64
Joerns Healthcare, LLC⁽⁴⁾	Healthcare, Education and Childcare	Senior Loan	05/2020	8.3		8,745		8,133
Paradigm DKD Group, LLC	Buildings and Real Estate	Senior Loan	05/2020	8.5		702		524
Paradigm DKD Group, LLC	Buildings and Real Estate	Senior Loan	05/2020	8.5		1,957		1,369
Pasternack Enterprises, Inc. and Fairview Microwave, Inc⁽⁴⁾	Diversified/Conglomerate Manufacturing	Senior Loan	07/2025	6.2		5,318		5,291
Payless ShoeSource, Inc.	Retail Stores	Senior Loan	08/2022	11.3		762		528
Polk Acquisition Corp.	Automobile	Senior Loan	06/2022	7.5		93		93
Polk Acquisition Corp.	Automobile	Senior Loan	06/2022	7.2		4,513		4,513
Polk Acquisition Corp.	Automobile	Senior Loan	06/2022	7.2		53		53
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior Loan	08/2019	8.8		411		411
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior Loan	08/2019	8.8		10,152		10,152
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior Loan	08/2019	8.8		45		45
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior Loan	08/2019	8.8		148		148
RSC Acquisition, Inc.⁽⁴⁾	Insurance	Senior Loan	11/2021	6.8		17		17
RSC Acquisition, Inc.⁽⁴⁾	Insurance	Senior Loan	11/2022	6.7		3,824		3,815
Rubio's Restaurants, Inc.⁽⁴⁾	Beverage, Food and Tobacco	Senior Loan	10/2019	7.6		4,941		4,941
Rug Doctor LLC	Personal and Non Durable Consumer Products (Mfg. Only)	Senior Loan	04/2019	7.6		991		991
Rug Doctor LLC	Personal and Non Durable Consumer Products (Mfg. Only)	Senior Loan	04/2019	7.6		5,061		5,061
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior Loan	12/2020	8.4		70		64

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)



SLF Investment Portfolio as of September 30, 2018 - (continued)
Portfolio Company	Business Description	Security Type	Maturity Date	Current Interest Rate⁽¹⁾		Principal ($) / Shares ⁽²⁾		Fair Value⁽³⁾
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior Loan	12/2020	8.4	%	4,345		3,997
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior Loan	12/2020	8.4		45		42
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior Loan	12/2020	8.4		64		59
Saldon Holdings, Inc. ⁽⁴⁾	Diversified/Conglomerate Service	Senior Loan	09/2022	6.4		2,354		2,342
SEI, Inc.⁽⁴⁾	Electronics	Senior Loan	07/2023	7.5		13,716		13,716
Self Esteem Brands, LLC⁽⁴⁾	Leisure, Amusement, Motion Pictures, Entertainment	Senior Loan	02/2020	7.0		10,142		10,142
Teasdale Quality Foods, Inc.	Grocery	Senior Loan	10/2020	6.9		4,507		4,416
Teasdale Quality Foods, Inc.	Grocery	Senior Loan	10/2020	6.9		486		476
Teasdale Quality Foods, Inc.	Grocery	Senior Loan	10/2020	7.1		650		637
Teasdale Quality Foods, Inc.	Grocery	Senior Loan	10/2020	7.1		239		235
Teasdale Quality Foods, Inc.	Grocery	Senior Loan	10/2020	6.9		3,532		3,460
Upstream Intermediate, LLC	Healthcare, Education and Childcare	Senior Loan	01/2024	6.6		2,830		2,830
W3 Co.	Oil and Gas	Senior Loan	03/2022	8.2		1,253		1,251
WHCG Management, LLC⁽⁴⁾	Healthcare, Education and Childcare	Senior Loan	03/2023	7.4		7,900		7,900
WIRB-Copernicus Group, Inc.⁽⁴⁾	Healthcare, Education and Childcare	Senior Loan	08/2022	6.5		5,609		5,609
Total senior loan investments						$	183,668	$	178,053

Payless ShoeSource, Inc. ⁽⁶⁾⁽⁷⁾	Retail Stores	LLC interest	N/A	N/A		35		$	54
W3 Co. ⁽⁶⁾⁽⁷⁾	Oil and Gas	LLC units	N/A	N/A		3		1,073
Total equity investments								$	1,127

Total investments						$	183,668	$	179,180


⁽¹⁾	Represents the weighted average annual current interest rate as of September 30, 2018. All interest rates are payable in cash, except where PIK is shown.


⁽²⁾	The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.


⁽³⁾	Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board's valuation process described elsewhere herein.


⁽⁴⁾	The Company also holds a portion of the first lien senior secured loan in this portfolio company.


⁽⁵⁾	Loan was on non-accrual status as of September 30, 2018. As such, no interest is being earned on this investment.


⁽⁶⁾	Equity investment received as a result of the portfolio company's debt restructuring.


⁽⁷⁾	Non-income producing.

As of June 30, 2019, the Company has committed to fund $175,000 of LLC equity interest subscriptions to SLF. As of June 30, 2019 and September 30, 2018, $74,883 and $75,407, respectively, of the Company’s LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall. For the three and nine months ended June 30, 2019, the Company received no dividend income from the LLC equity interests in SLF. For the three and nine months ended June 30, 2018, the Company received $2,050 and $5,868, respectively, in dividend income from the LLC equity interests in SLF.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

See below for certain summarized financial information for SLF as of June 30, 2019 and September 30, 2018 and for the three and nine months ended June 30, 2019 and 2018:



	As of June 30, 2019		As of September 30, 2018
Selected Balance Sheet Information:
Investments, at fair value	$	153,786	$	179,180
Cash and other assets	5,734		7,146
Total assets	$	159,520	$	186,326
Senior credit facility	$	77,138	$	104,622
Unamortized debt issuance costs	—		(18		)
Other liabilities	391		484
Total liabilities	77,529		105,088
Members’ equity	81,991		81,238
Total liabilities and members' equity	$	159,520	$	186,326



	Three months ended June 30,						Nine months ended June 30,
	2019			2018			2019			2018
Selected Statement of Operations Information:
Interest income	$	3,217		$	4,692		$	10,392		$	14,444
Fee income	—			—			9			25
Total investment income	3,217			4,692			10,401			14,469
Interest and other debt financing expense	980			1,662			3,300			5,506
Administrative service fee	65			119			209			340
Other expenses	23			30			72			87
Total expenses	1,068			1,811			3,581			5,933
Net investment income	2,149			2,881			6,820			8,536
Net realized gain (loss) on investments	—			—			(1,315		)	—
Net change in unrealized appreciation (depreciation) on investments	(2,149		)	(1,196		)	(4,153		)	(2,414		)
Net increase (decrease) in members' equity	$	—		$	1,685		$	1,352		$	6,122

Note 5. Fair Value Measurements

The Company follows ASC Topic 820 for measuring fair value. Fair value is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the assets or liabilities or market and the assets’ or liabilities’ complexity. The Company’s fair value analysis includes an analysis of the value of any unfunded loan commitments. Assets and liabilities are categorized for disclosure purposes based upon the level of judgment associated with the inputs used to measure their value. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation of the asset or liability as of the measurement date. The three levels are defined as follows:

Level 1: Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2: Inputs include quoted prices for similar assets or liabilities in active markets and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the assets or liabilities.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

Level 3: Inputs include significant unobservable inputs for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value are based upon the best information available and may require significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfers. There were no transfers among Level 1, 2 and 3 of the fair value hierarchy for assets and liabilities during the three and nine months ended June 30, 2019 and 2018. The following section describes the valuation techniques used by the Company to measure different assets and liabilities at fair value and includes the level within the fair value hierarchy in which the assets and liabilities are categorized.

Investments

Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of the Board to assist in the valuation of each portfolio investment without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process. This valuation process is conducted at the end of each fiscal quarter, with approximately 25% (based on the number of portfolio companies) of the Company’s valuations of debt and equity investments without readily available market quotations subject to review by an independent valuation firm. All investments as of June 30, 2019 and September 30, 2018, with the exception of money market funds included in cash, cash equivalents and restricted cash and cash equivalents (Level 1 investments) and investments measured at fair value using the NAV, were valued using Level 3 inputs.

When determining fair value of Level 3 debt and equity investments, the Company may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary method for determining enterprise value uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s net income before net interest expense, income tax expense, depreciation and amortization (“EBITDA”). A portfolio company’s EBITDA may include pro forma adjustments for items such as acquisitions, divestitures, or expense reductions. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired, the Company will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, the Company uses a market interest rate yield analysis to determine fair value.

In addition, for certain debt investments, the Company may base its valuation on indicative bid and ask prices provided by an independent third party pricing service. Bid prices reflect the highest price that the Company and others may be willing to pay. Ask prices represent the lowest price that the Company and others may be willing to accept. The Company generally uses the midpoint of the bid/ask range as its best estimate of fair value of such investment.

Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded. The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

Secured Borrowings

The Company has elected the fair value option under ASC Topic 825 - Financial Instruments, relating to accounting for debt obligations at their fair value for its secured borrowings which arose due to partial loan sales which did not meet the criteria for sale treatment under ASC Topic 860. The Company reports changes in the fair value of its secured borrowings as a component of the net change in unrealized (appreciation) depreciation on secured borrowings in the Consolidated Statements of Operations. The net gain or loss reflects the difference between the fair value and the principal amount due on maturity.

As of June 30, 2019 and September 30, 2018, there were no secured borrowings outstanding. Previous secured borrowings were valued using Level 3 inputs under the fair value hierarchy, and the Company’s approach to determining fair value of Level 3 secured borrowings is consistent with its approach to determining fair value of the Level 3 investments that are associated with these secured borrowings as previously described.

The following tables present fair value measurements of the Company’s investments and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of June 30, 2019 and September 30, 2018:



As of June 30, 2019	Fair Value Measurements Using
Description	Level 1		Level 2		Level 3		Total
Assets, at fair value:
Debt investments⁽¹⁾	$	—	$	—	$	1,805,684	$	1,805,684
Equity investments⁽¹⁾	—		—		45,395		45,395
Money market funds⁽¹⁾⁽²⁾	25,584		—		—		25,584
Investment measured at NAV⁽³⁾⁽⁴⁾	—		—		—		71,742
Total assets, at fair value:	$	25,584	$	—	$	1,851,079	$	1,948,405



As of September 30, 2018	Fair Value Measurements Using
Description	Level 1		Level 2		Level 3		Total
Assets, at fair value:
Debt investments⁽¹⁾	$	—	$	—	$	1,671,051	$	1,671,051
Equity investments⁽¹⁾	—		—		40,706		40,706
Money market funds⁽¹⁾⁽²⁾	10,532		—		—		10,532
Investment measured at NAV⁽³⁾⁽⁴⁾	—		—		—		71,084
Total assets, at fair value:	$	10,532	$	—	$	1,711,757	$	1,793,373


⁽¹⁾	Refer to the Consolidated Schedules of Investments for further details.


⁽²⁾	Included in cash and cash equivalents and restricted cash, cash equivalents and foreign currencies on the Consolidated Statements of Financial Condition.


⁽³⁾	Certain investments that are measured at fair value using the NAV have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Financial Condition.


⁽⁴⁾	Represents the Company's investment in LLC equity interests in SLF. The fair value of this investment has been determined using the NAV of the Company’s ownership interest in members’ capital.

The net change in unrealized appreciation (depreciation) for the three and nine months ended June 30, 2019, reported within the net change in unrealized appreciation (depreciation) on investments in the Company's Consolidated Statements of Operations attributable to the Company's Level 3 assets held as of June 30, 2019 was $1,732 and $2,667, respectively. The net change in unrealized appreciation (depreciation) for the three and nine months ended June 30, 2018, reported within the net change in unrealized appreciation (depreciation) on investments in the Company's Consolidated Statements of Operations attributable to the Company's Level 3 assets held as of June 30, 2018 was $1,374 and $6,702, respectively.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

The following table presents the changes in investments measured at fair value using Level 3 inputs for the nine months ended June 30, 2019 and 2018:



	For the nine months ended June 30, 2019
	Debt Investments			Equity Investments			Total Investments
Fair value, beginning of period	$	1,671,051		$	40,706		$	1,711,757
Net change in unrealized appreciation (depreciation) on investments	(6,004		)	5,612			(392		)
Realized gain (loss) on investments	(2,473		)	(2,044		)	(4,517		)
Funding of (proceeds from) revolving loans, net	2,264			—			2,264
Fundings of investments	448,538			6,214			454,752
PIK interest	1,811			—			1,811
Proceeds from principal payments and sales of portfolio investments	(316,127		)	(5,093		)	(321,220		)
Accretion of discounts and amortization of premiums	6,624			—			6,624
Fair value, end of period	$	1,805,684		$	45,395		$	1,851,079



	For the nine months ended June 30, 2018
	Debt Investments			Equity Investments			Total Investments
Fair value, beginning of period	$	1,538,606		$	51,394		$	1,590,000
Net change in unrealized appreciation (depreciation) on investments	3,661			(7,626		)	(3,965		)
Realized gain (loss) on investments	(4,175		)	18,919			14,744
Funding of (proceeds from) revolving loans, net	(4,334		)	—			(4,334		)
Fundings of investments	453,084			4,387			457,471
PIK interest	710			—			710
Proceeds from principal payments and sales of portfolio investments	(332,675		)	(23,435		)	(356,110		)
Accretion of discounts and amortization of premiums	7,420			—			7,420
Fair value, end of period	$	1,662,297		$	43,639		$	1,705,936

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of June 30, 2019 and September 30, 2018.



Quantitative information about Level 3 Fair Value Measurements
	Fair value as of June 30, 2019		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Assets:
Senior secured loans⁽¹⁾⁽²⁾	$	256,042	Market rate approach	Market interest rate	4.3% - 11.0% (7.2%)
			Market comparable companies	EBITDA multiples	5.0x - 24.0x (11.8x)
	8,079		Market comparable	Broker/dealer bids or quotes	N/A
One stop loans^(1)(3)(4)	$	1,523,370	Market rate approach	Market interest rate	2.0% - 17.8% (8.5%)
			Market comparable companies	EBITDA multiples	5.0x - 47.0x (14.1x)
				Revenue multiples	1.5x - 14.2x (6.2x)
	—		Market comparable	Broker/dealer bids or quotes	N/A
Subordinated debt and second lien loans⁽¹⁾⁽⁵⁾	$	11,099	Market rate approach	Market interest rate	7.5% - 24.3% (12.2%)
			Market comparable companies	EBITDA multiples	8.5x - 17.5x (9.8x)
				Revenue multiples	3.0x - 3.0x (3.0x)
Equity⁽⁶⁾⁽⁷⁾	$	45,395	Market comparable companies	EBITDA multiples	3.0x - 47.0x (13.1x)
				Revenue multiples	1.5x - 6.0x (3.9x)

⁽¹⁾

The fair value of this asset class was determined using the market rate and market comparable approaches, as applicable, as the investments in this asset class were determined not to be credit impaired using the market comparable companies approach. The unobservable inputs for both valuation techniques have been presented, but the fair value as of June 30, 2019 was determined using the market rate and market comparable approaches, as applicable.


⁽²⁾	Excludes $794 of non-accrual loans at fair value, which the Company valued using the market comparable companies approach.


⁽³⁾	Excludes $6,300 of non-accrual loans at fair value, which the Company valued using the market comparable companies approach.


⁽⁴⁾	The Company valued $1,324,228 and $199,142 of one stop loans using EBITDA and revenue multiples, respectively. All one stop loans were also valued using the market rate approach.


⁽⁵⁾	The Company valued $11,095 and $4 of subordinated debt and second lien loans using EBITDA and revenue multiples, respectively. All subordinated debt and second lien loans were also valued using the market rate approach.


⁽⁶⁾	Excludes $71,742 of LLC equity interests in SLF at fair value, which the Company valued using the NAV.


⁽⁷⁾	The Company valued $39,570 and $5,825 of equity investments using EBITDA and revenue multiples, respectively.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)



Quantitative information about Level 3 Fair Value Measurements
	Fair value as of September 30, 2018		Valuation Techniques	Unobservable Input	Range (Weighted Average)
Assets:
Senior secured loans⁽¹⁾⁽²⁾	$	225,960	Market rate approach	Market interest rate	4.3% - 9.9% (7.2%)
			Market comparable companies	EBITDA multiples	5.0x - 15.0x (11.1x)
	3,926		Market comparable	Broker/dealer bids or quotes	N/A
One stop loans^(1)(3)(4)	$	1,422,601	Market rate approach	Market interest rate	2.0% - 13.8% (8.8%)
			Market comparable companies	EBITDA multiples	4.5x - 35.0x (13.6x)
				Revenue multiples	1.3x - 10.2x (4.1x)
	3,253		Market comparable	Broker/dealer bids or quotes	N/A
Subordinated debt and second lien loans⁽¹⁾⁽⁵⁾	$	9,686	Market rate approach	Market interest rate	8.0% - 19.5% (10.4%)
			Market comparable companies	EBITDA multiples	10.5x - 11.0x (10.5x)
				Revenue multiples	5.1x
Equity⁽⁶⁾⁽⁷⁾	$	40,706	Market comparable companies	EBITDA multiples	4.5x - 28.5x (12.2x)
				Revenue multiples	1.3x - 10.2x (4.0x)

⁽¹⁾

The fair value of this asset class was determined using the market rate and market comparable approaches, as applicable, as the investments in this asset class were determined not to be credit impaired using the market comparable companies approach. The unobservable inputs for both valuation techniques have been presented, but the fair value as of September 30, 2018 was determined using the market rate and market comparable approaches, as applicable.


⁽²⁾	Excludes $1,283 of non-accrual loans at fair value, which the Company valued using the market comparable companies approach.


⁽³⁾	Excludes $4,342 of non-accrual loans at fair value, which the Company valued using the market comparable companies approach.


⁽⁴⁾	The Company valued $1,253,179 and $169,422 of one stop loans using EBITDA and revenue multiples, respectively. All one stop loans were also valued using the market rate approach.


⁽⁵⁾	The Company valued $9,502 and $184 of subordinated debt and second lien loans using EBITDA and revenue multiples, respectively. All subordinated debt and second lien loans were also valued using the market rate approach.


⁽⁶⁾	Excludes $71,084 of LLC equity interests in SLF at fair value, which the Company valued using the NAV.


⁽⁷⁾	The Company valued $36,714 and $3,992 of equity investments using EBITDA and revenue multiples, respectively.

The above tables are not intended to be all-inclusive but rather to provide information on significant unobservable inputs and valuation techniques used by the Company.

The significant unobservable inputs used in the fair value measurement of the Company’s debt and equity investments are EBITDA multiples, revenue multiples and market interest rates. The Company uses EBITDA multiples and, to a lesser extent, revenue multiples on its debt and equity investments to determine any credit gains or losses. Increases or decreases in either of these inputs in isolation would have resulted in a significantly lower or higher fair value measurement. The Company uses market interest rates for loans to determine if the effective yield on a loan is commensurate with the market yields for that type of loan. If a loan’s effective yield was significantly less than the market yield for a similar loan with a similar credit profile, then the resulting fair value of the loan may have been lower.

Other Financial Assets and Liabilities

ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. As a result, with the exception of the line item titled “debt” which is reported at cost, all assets and liabilities approximate fair value on the Consolidated Statements of Financial Condition due to their short maturity. Fair value of the Company’s debt is estimated using Level 3 inputs by discounting remaining payments using comparable market rates or market quotes for similar instruments at the measurement date, if available.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

The following are the carrying values and fair values of the Company’s debt as of June 30, 2019 and September 30, 2018. Fair value is estimated by discounting remaining payments using applicable market rates or market quotes for similar instruments at the measurement date, if available.



	As of June 30, 2019				As of September 30, 2018
	Carrying Value		Fair Value		Carrying Value		Fair Value
Debt	$	1,047,136	$	1,035,465	$	845,683	$	837,578
Other short-term borrowings	3,501		3,501		—		—

Note 6. Borrowings

In accordance with the 1940 Act, with certain limited exceptions, prior to February 6, 2019 the Company was allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, was at least 200% after such borrowing. The Small Business Credit Availability Act (“SBCAA”), which was signed into law on March 23, 2018, among other things, amended Section 61(a) of the 1940 Act to add a new Section 61(a)(2) that reduces the asset coverage requirement applicable to business development companies from 200% to 150% so long as the business development company meets certain disclosure requirements and obtains certain approvals. On February 5, 2019, the Company’s stockholders voted to approve the asset coverage requirement decrease to 150% from 200% in accordance with Section 61(a)(2) of the 1940 Act. Effective February 6, 2019, the reduced asset coverage requirement permits the Company to have a ratio of total consolidated assets to outstanding indebtedness of 2:1 as compared to a maximum of 1:1 under the 200% asset coverage requirement. The Company currently intends to target a GAAP debt-to-equity ratio of about 1.0x. On September 13, 2011, the Company received exemptive relief from the SEC allowing it to modify the asset coverage requirement to exclude the SBA debentures from the asset coverage calculation. As such, the Company’s ratio of total consolidated assets to outstanding indebtedness may be less than the applicable asset coverage requirement under the 1940 Act. This provides the Company with increased investment flexibility but also increases its risks related to leverage. As of June 30, 2019, the Company’s asset coverage for borrowed amounts was 227.84% (excluding the SBA debentures).

Debt Securitizations: On July 16, 2010, the Company completed a $300,000 term debt securitization, which was subsequently increased to $350,000 (as amended, “2010 Debt Securitization”). Term debt securitizations are also known as collateralized loan obligations ("CLOs") and are a form of secured financing incurred by the Company, which is consolidated by the Company and subject to the Company's overall asset coverage requirements. The notes (“2010 Notes”) offered in the 2010 Debt Securitization were issued by the 2010 Issuer, a subsidiary of Holdings. Through October 19, 2016, the 2010 Debt Securitization consisted of $203,000 of Aaa/AAA Class A 2010 Notes that bore interest at a rate of three-month LIBOR plus 1.74%, $12,000 of Class B 2010 Notes that bore interest at a rate of three-month LIBOR plus 2.40% and $135,000 of Subordinated 2010 Notes that do not bear interest. On October 20, 2016, the Company and the 2010 Issuer further amended the 2010 Debt Securitization to, among other things, (a) refinance the issued Class A 2010 Notes by redeeming in full the Class A 2010 Notes and issuing new Class A-Refi 2010 Notes in an aggregate principal amount of $205,000 that bore interest at a rate of three-month LIBOR plus 1.90%, (b) refinance the Class B 2010 Notes by redeeming in full the Class B 2010 Notes and issuing new Class B-Refi 2010 Notes in an aggregate principal amount of $10,000 that bore interest at a rate of three-month LIBOR plus 2.40%, and (c) extend the reinvestment period applicable to the 2010 Issuer to July 20, 2018. Following the refinancing, Holdings retained the Class B-Refi 2010 Notes. Through July 20, 2018, all principal collections received on the underlying collateral could have been used by the 2010 Issuer to purchase new collateral under the direction of the Investment Adviser in its capacity as collateral manager of the 2010 Issuer and in accordance with the Company’s investment strategy, allowing the Company to maintain the leverage in the 2010 Debt Securitization. The 2010 Notes were scheduled to mature on July 20, 2023.

On July 20, 2018, in connection with a new revolving credit facility, the 2010 Issuer redeemed the outstanding 2010 Notes pursuant to the terms of the indenture governing such 2010 Notes. Following such redemption, the agreements governing the 2010 Debt Securitization were terminated.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

The interest charged under the 2010 Debt Securitization was based on three-month LIBOR. For the three and nine months ended June 30, 2019 and 2018, the components of interest expense, cash paid for interest, average interest rates and average outstanding balances for the 2010 Debt Securitization were as follows:



	For the three months ended June 30,					For the nine months ended June 30,
	2019		2018			2019		2018
Stated interest expense	$	—	$	2,141		$	—	$	5,666
Amortization of debt issuance costs	—		43			—		180
Total interest and other debt financing expenses	$	—	$	2,184		$	—	$	5,846
Cash paid for interest expense	$	—	$	1,826		$	—	$	5,253
Annualized average stated interest rate	N/A		4.2		%	N/A		3.7		%
Average outstanding balance	$	—	$	205,000		$	—	$	205,000

On June 5, 2014, the Company completed a $402,569 term debt securitization (“2014 Debt Securitization”). The notes (“2014 Notes”) offered in the 2014 Debt Securitization were issued by the 2014 Issuer and are secured by a diversified portfolio of senior secured and second lien loans held by the 2014 Issuer. The 2014 Debt Securitization initially consisted of $191,000 of Aaa/AAA Class A-1 2014 Notes, $20,000 of Aaa/AAA Class A-2 2014 Notes and $35,000 of Aa2/AA Class B 2014 Notes. In partial consideration for the loans transferred to the 2014 Issuer as part of the 2014 Debt Securitization, the Company received and retained $37,500 of Class C 2014 Notes and $119,069 of LLC equity interests in the 2014 Issuer. On March 23, 2018, the Company and the 2014 Issuer amended the 2014 Debt Securitization to, among other things, (a) refinance the issued Class A-1 2014 Notes by redeeming in full the $191,000 of Class A-1 2014 Notes and issuing new Class A-1-R 2014 Notes in an aggregate principal amount of $191,000 that bear interest at a rate of three-month LIBOR plus 0.95%, which is a decrease from the rate of three-month LIBOR plus 1.75% of the previously outstanding Class A-1 2014 Notes, (b) refinance the Class A-2 2014 Notes by redeeming in full the $20,000 of Class A-2 2014 Notes and issuing new Class A-2-R 2014 Notes in an aggregate principal amount of $20,000 that bear interest at a rate of three-month LIBOR plus 0.95%, which is a decrease from the rate of three-month LIBOR plus 1.95% of the previously outstanding Class A-2 2014 Notes, (c) refinance the Class B 2014 Notes by redeeming in full the $35,000 of Class B 2014 Notes and issuing new Class B-R 2014 Notes in an aggregate principal amount of $35,000 that bear interest at a rate of three-month LIBOR plus 1.40%, which is a decrease from the rate of three-month LIBOR plus 2.50% of the previously outstanding Class B 2014 Notes, (d) refinance the Class C 2014 Notes by redeeming in full the $37,500 of Class C 2014 Notes and issuing new Class C-R 2014 Notes in an aggregate principal amount of $37,500 that bear interest at a rate of three-month LIBOR plus 1.55%, which is a decrease from the rate of three-month LIBOR plus 3.50% of the previously outstanding Class C 2014 Notes. The Class C-R 2014 Notes were retained by the Company, and the Company remains the sole owner of the equity of the 2014 Issuer. The Class A-1-R, Class A-2-R and Class B-R 2014 Notes are included in the June 30, 2019 and September 30, 2018 Consolidated Statements of Financial Condition as debt of the Company and the Class C-R 2014 Notes and LLC equity interests were eliminated in consolidation.

Through April 28, 2018, all principal collections received on the underlying collateral could have been used by the 2014 Issuer to purchase new collateral under the direction of the Investment Adviser in its capacity as collateral manager of the 2014 Issuer and in accordance with the Company’s investment strategy, allowing the Company to maintain the initial leverage in the 2014 Debt Securitization. For the three and nine months ended June 30, 2019, the Company had repayments on the 2014 Notes of $24,720 and $42,760, respectively. For the three and nine months ended June 30, 2018, the Company had no repayments on the 2014 Notes. The 2014 Notes are scheduled to mature on April 25, 2026.

As of June 30, 2019 and September 30, 2018, there were 69 and 83 portfolio companies with a total fair value of $282,335 and $346,130, respectively, securing the 2014 Notes. The pool of loans in the 2014 Debt Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

The interest charged under the 2014 Debt Securitization is based on three-month LIBOR. The three-month LIBOR in effect as of June 30, 2019 based on the last interest rate reset was 2.6%. For the three and nine months ended June 30, 2019 and 2018, the components of interest expense, cash paid for interest, average interest rates and average outstanding balances for the 2014 Debt Securitization were as follows:



	For the three months ended June 30,						For the nine months ended June 30,
	2019			2018			2019			2018
Stated interest expense	$	1,501		$	2,083		$	4,899		$	6,254
Amortization of debt issuance costs	—			371			110			710
Total interest and other debt financing expenses	$	1,501		$	2,454		$	5,009		$	6,964
Cash paid for interest expense	$	1,709		$	741		$	5,109		$	6,191
Annualized average stated interest rate	3.7		%	3.4		%	3.7		%	3.4		%
Average outstanding balance	$	161,242		$	246,000		$	178,184		$	246,000

As of June 30, 2019, the classes, amounts, ratings and interest rates (expressed as a spread to three-month LIBOR) of the Class A-1-R, A-2-R and B-R 2014 Notes are as follows:



Description	Class A-1-R 2014 Notes	Class A-2-R 2014 Notes	Class B-R 2014 Notes
Type	Senior Secured Floating Rate	Senior Secured Floating Rate	Senior Secured Floating Rate
Amount Outstanding	$108,375	$11,348	$35,000
Moody’s Rating	"Aaa"	"Aaa"	"Aa1"
S&P Rating	"AAA"	"AAA"	"AA+"
Interest Rate	LIBOR + 0.95%	LIBOR + 0.95%	LIBOR + 1.40%

On November 16, 2018, the Company completed a $602.4 million term debt securitization (the “2018 Debt Securitization”). The notes offered in the 2018 Debt Securitization (the “2018 Notes”) were issued by the 2018 Issuer, a subsidiary of 2018 CLO Depositor, and are backed by a diversified portfolio of senior secured and second lien loans. The transaction was executed through a private placement of approximately $327.0 million of AAA/AAA Class A 2018 Notes, which bear interest at the three-month LIBOR plus 1.48%; $61.2 million of AA Class B 2018 Notes, which bear interest at the three-month LIBOR plus 2.10%; $20.0 million of A Class C-1 2018 Notes, which bear interest at the three-month LIBOR plus 2.80%; $38.8 million of A Class C-2 2018 Notes, which bear interest at the three-month LIBOR plus 2.65%; $42.0 million of BBB- Class D 2018 Notes, which bear interest at the three-month LIBOR plus 2.95%; and $113.4 million of Subordinated 2018 Notes which do not bear interest. The Company indirectly retained all of the Class C-2, Class D and Subordinated 2018 Notes. Through January 20, 2023, all principal collections received on the underlying collateral may be used by the 2018 Issuer to purchase new collateral under the direction of the Investment Adviser, in its capacity as collateral manager of the 2018 Issuer and in accordance with the Company’s investment strategy, allowing the Company to maintain the initial leverage in the 2018 Debt Securitization. The 2018 Notes are scheduled to mature on January 20, 2031. The Class A, Class B and Class C-1 2018 Notes are included in the June 30, 2019 Consolidated Statements of Financial Condition as debt of the Company. As of June 30, 2019 the Class C-2, Class D and Subordinated 2018 Notes were eliminated in consolidation.

As of June 30, 2019, there were 99 portfolio companies with a total fair value of $586,975 securing the 2018 Notes. The pool of loans in the 2018 Debt Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

The interest charged under the 2018 Debt Securitization is based on three-month LIBOR. The three-month LIBOR in effect as of June 30, 2019 based on the last interest rate reset was 2.6%. For the three and nine months ended June 30, 2019 and 2018, the components of interest expense, cash paid for interest, average interest rates and average outstanding balances for the 2018 Debt Securitization were as follows:



	For the three months ended June 30,					For the nine months ended June 30,
	2019			2018		2019			2018
Stated interest expense	$	4,408		$	—	$	10,986		$	—
Amortization of debt issuance costs	105			—		262			—
Total interest and other debt financing expenses	$	4,513		$	—	$	11,248		$	—
Cash paid for interest expense	$	7,629		$	—	$	7,629		$	—
Annualized average stated interest rate	4.3		%	N/A		4.3		%	N/A
Average outstanding balance	$	408,200		$	—	$	339,419		$	—

As of June 30, 2019, the classes, amounts, ratings and interest rates (expressed as a spread to three-month LIBOR) of the Class A, B and C-1 2018 Notes are as follows:



Description	Class A 2018 Notes	Class B 2018 Notes	Class C-1 2018 Notes
Type	Senior Secured Floating Rate	Senior Secured Floating Rate	Senior Secured Floating Rate
Amount Outstanding	$327,000	$61,200	$20,000
Fitch Rating	"AAA"	"NR"	"NR"
S&P Rating	"AAA"	"AA"	"A"
Interest Rate	LIBOR + 1.48%	LIBOR + 2.10%	LIBOR + 2.80%

The Investment Adviser served as collateral manager to the 2010 Issuer and serves as collateral manager to the 2014 Issuer and 2018 Issuer under separate collateral management agreements and receives a fee for providing these services. The total fees payable by the Company under its Investment Advisory Agreement are reduced by an amount equal to the total aggregate fees paid to the Investment Adviser by the 2010 Issuer, the 2014 Issuer and the 2018 Issuer for rendering such collateral management services.

As part of each of the 2010 Debt Securitization, the 2014 Debt Securitization and the 2018 Debt Securitization, GBDC entered into master loan sale agreements under which GBDC agreed to directly or indirectly sell or contribute certain senior secured and second lien loans (or participation interests therein) to the 2010 Issuer, the 2014 Issuer and the 2018 Issuer, as applicable, and to purchase or otherwise acquire the Subordinated 2010 Notes, the LLC equity interests in the 2014 Issuer and the Subordinated 2018 Notes, as applicable. As of June 30, 2019, the 2014 Notes and the 2018 Notes (other than the Subordinated 2018 Notes) were the secured obligations of the 2014 Issuer and 2018 Issuer, respectively, and indentures governing each of the 2014 Notes and the 2018 Notes include customary covenants and events of default.

SBA Debentures: On August 24, 2010, SBIC IV received approval for a license from the SBA to operate as an SBIC. On December 5, 2012, SBIC V received a license from the SBA to operate as an SBIC. On January 10, 2017, SBIC VI received a license from the SBA to operate as an SBIC. SBICs are subject to a variety of regulations and oversight by the SBA concerning the size and nature of the companies in which they may invest as well as the structures of those investments.

The licenses allow the SBICs to obtain leverage by issuing SBA-guaranteed debentures, subject to issuance of a capital commitment by the SBA and customary procedures. These debentures are non-recourse to GBDC, have interest payable semiannually and a ten-year maturity. The interest rate is fixed at the time of issuance at a market-driven spread over U.S. Treasury Notes with ten-year maturities.

Under present SBIC regulations, the maximum amount of SBA-guaranteed debentures that may be issued by multiple licensees under common management is $350,000 and the maximum amount that a single SBIC licensee may issue is $175,000. As of June 30, 2019, SBIC IV, SBIC V and SBIC VI had $115,000, $162,500 and $22,000, respectively, of outstanding SBA-guaranteed debentures that mature between September 2021 and March 2029. As of September 30, 2018, SBIC IV, SBIC V and SBIC VI had $115,000, $150,000 and $12,500, respectively, of outstanding SBA-guaranteed debentures that mature between September 2021 and March 2028. The reinvestment period for SBIC IV expired on September 30, 2018. The original amount of debentures committed to SBIC IV by the

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Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

SBA was $150,000. In March 2018 and September 2017, SBIC IV repaid $10,000 and $25,000, respectively, of the aggregate principal amount of the SBA-guaranteed debentures outstanding at the time and $10,000 and $25,000, respectively, of debenture commitments were terminated. As of June 30, 2019, SBIC V and SBIC VI had $12,500 and $28,000 of undrawn debenture commitments, respectively, none of which is available to be drawn, subject to SBA regulatory requirements. As of September 30, 2018, SBIC V and SBIC VI had $0 and $37,500 of undrawn debenture commitments, respectively, of which $0 and $9,500, respectively, was available to be drawn, subject to SBA regulatory requirements.

The interest rate on the outstanding debentures as of June 30, 2019 is fixed at an average annualized interest rate of 3.4%. For the three and nine months ended June 30, 2019 and 2018, the components of interest expense, cash paid for interest, annualized average interest rates and average outstanding balances for the SBA debentures were as follows:



	For the three months ended June 30,						For the nine months ended June 30,
	2019			2018			2019			2018
Stated interest expense	$	2,424		$	2,337		$	7,171		$	6,876
Amortization of debt issuance costs	216			272			648			821
Total interest and other debt financing expenses	$	2,640		$	2,609		$	7,819		$	7,697
Cash paid for interest expense	$	—		$	—		$	4,711		$	4,512
Annualized average stated interest rate	3.4		%	3.4		%	3.4		%	3.4		%
Average outstanding balance	$	287,549		$	277,500		$	283,703		$	272,780

Revolving Credit Facilities: On July 21, 2011, Funding entered into a senior secured revolving credit facility (as amended, the “Credit Facility”) with Wells Fargo Bank, N.A., as administrative agent and lender. On February 4, 2019, the Credit Facility was repaid in full and subsequently terminated. Prior to termination, the Credit Facility allowed Funding to borrow up to $170,000 at any one time outstanding, subject to leverage and borrowing base restrictions.

Through a series of amendments, most recently on September 21, 2018, the Company and Funding amended the Credit Facility to, among other things, extend the expiration of the reinvestment period to September 20, 2019, extend the stated maturity date to September 21, 2023, and permit borrowings in foreign currencies. On December 14, 2017, the Company and Funding amended the Credit Facility to, among other things, decrease the size of the Credit Facility from $225,000 to $170,000 and decrease the interest the Credit Facility bears from one-month LIBOR plus 2.25% to one-month LIBOR plus 2.15%. In addition to the stated interest rate on the Credit Facility, the Company was required to pay a non-usage fee at a rate between 0.50% and 1.75% per annum depending on the size of the unused portion of the Credit Facility. The Credit Facility was collateralized by all of the assets held by Funding, and GBDC had pledged its interests in Funding as collateral to Wells Fargo Bank, N.A., as the collateral agent, under an ancillary agreement to secure the obligations of GBDC as the transferor and servicer under the Credit Facility. Both GBDC and Funding made customary representations and warranties and were required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. Borrowing under the Credit Facility was subject to the 200% asset coverage requirements contained in the 1940 Act.

The Company transferred certain loans and debt securities it originated or acquired from time to time to Funding through a purchase and sale agreement and caused Funding to originate or acquire loans, consistent with the Company’s investment objectives.

As of June 30, 2019 and September 30, 2018, the Company had outstanding debt under the Credit Facility of $0 and $136,000, respectively. For the three and nine months ended June 30, 2019, the Company had borrowings on the Credit Facility of $0 and $274,522, respectively, and repayments on the Credit Facility of $0 and $410,547, respectively. For the three and nine months ended June 30, 2018, the Company had borrowings on the Credit Facility of $150,950 and $394,300, respectively, and repayments on the Credit Facility of $110,200 and $309,950, respectively.

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Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

For the three and nine months ended June 30, 2019 and 2018, the components of interest expense, cash paid for interest and facility fees, annualized average interest rates and average outstanding balances for the Credit Facility were as follows:



	For the three months ended June 30,					For the nine months ended June 30,
	2019		2018			2019			2018
Stated interest expense	$	—	$	1,052		$	1,455		$	2,565
Facility fees	—		84			189			521
Amortization of debt issuance costs	—		121			156			531
Total interest and other debt financing expenses	$	—	$	1,257		$	1,800		$	3,617
Cash paid for interest expense and facility fees	$	—	$	1,061		$	2,033		$	2,995
Annualized average stated interest rate	N/A		4.1		%	4.5		%	3.7		%
Average outstanding balance	$	—	$	102,335		$	42,788		$	92,197

On July 20, 2018, the 2010 Issuer entered into a credit facility (as amended, the “MS Credit Facility”) with Morgan Stanley Bank, N.A., as lender, Morgan Stanley Senior Secured Funding, Inc., as administrative agent, and U.S. Bank National Association, as collateral agent for the administrative agent and the lenders. On November 1, 2018, the 2010 Issuer amended the MS Credit Facility to, among other things, increase the size of the MS Credit Facility from $300,000 to $450,000. The other material terms of the MS Credit Facility were unchanged. On November 16, 2018, a portion of the proceeds from the private placement of the 2018 Notes, net of expenses, was used to repay all amounts outstanding under the MS Credit Facility, following which the agreements governing the MS Credit Facility were terminated.

The period from the closing date until January 18, 2019 was referred to as the revolving period and during such revolving period, the 2010 Issuer could request drawdowns under the MS Credit Facility. The MS Credit Facility bore interest at a rate equal to one-month LIBOR plus 1.90% during the revolving period and was scheduled to mature on March 20, 2019.

The MS Credit Facility was secured by all of the assets held by the 2010 Issuer. Pursuant to a collateral management agreement, the Investment Adviser had agreed to perform certain duties with respect to the purchase and management of the assets securing the MS Credit Facility. The Investment Adviser was not paid a fee for such services under the collateral management agreement, but was reimbursed for expenses incurred in the performance of such obligations other than any ordinary overhead expenses, which shall not be reimbursed. The 2010 Issuer made customary representations and warranties and was required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. Borrowing under the MS Credit Facility was subject to the leverage restrictions contained in 1940 Act.

As of June 30, 2019 and September 30, 2018, the Company had outstanding debt under the MS Credit Facility of $0 and $234,700, respectively. For the three and nine months ended June 30, 2019, the Company had borrowings on the MS Credit Facility of $0 and $147,100, respectively, and repayments on the MS Credit Facility of $0 and $381,800, respectively. For the three and nine months ended June 30, 2018, the Company had no borrowings or repayments on the MS Credit Facility.

For the three and nine months ended June 30, 2019 and 2018, the components of interest expense, cash paid for interest and facility fees, average interest rates and average outstanding balances for the MS Credit Facility were as follows:



	For the three months ended June 30,				For the nine months ended June 30,
	2019		2018		2019			2018
Stated interest expense	$	—	$	—	$	1,453		$	—
Amortization of debt issuance costs	—		—		190			—
Total interest and other debt financing expenses	$	—	$	—	$	1,643		$	—
Cash paid for interest expense and facility fees	$	—	$	—	$	3,174		$	—
Annualized average stated interest rate	N/A		N/A		4.2		%	N/A
Average outstanding balance	$	—	$	—	$	45,717		$	—

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Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

On February 1, 2019, Funding II entered into a credit facility (the "MS Credit Facility II") with Morgan Stanley Senior Funding, Inc., as the administrative agent, each of the lenders from time to time party thereto, each of the securitization subsidiaries from time to time party thereto, and Wells Fargo Bank, N.A., as collateral agent, account bank and collateral custodian. As of June 30, 2019, the MS Credit Facility II allows Funding II to borrow up to $200,000 at any one time outstanding, subject to leverage and borrowing base restrictions.

The period from February 1, 2019 until February 1, 2021 is referred to as the revolving period and during such revolving period, Funding II may request drawdowns under the MS Credit Facility II. During the revolving period, borrowings under the MS Credit Facility II bear interest at the applicable base rate plus 2.05%. Following expiration of the revolving period, the interest rate on borrowings under the MS Credit Facility II will reset to the applicable base rate plus 2.55% for the remaining term of the MS Credit Facility II. The revolving period will continue through February 1, 2021 unless there is an earlier termination or event of default. The base rate under the MS Credit Facility II is (i) the one-month LIBOR with respect to any advances denominated in U.S. dollars or U.K. pound sterling, (ii) the one-month EURIBOR with respect to any advances denominated in euros, and (iii) the one-month Canadian Dollar Offered Rate with respect to any advances denominated in Canadian dollars. The scheduled maturity date of the MS Credit Facility II is February 1, 2024.

The MS Credit Facility II is secured by all of the assets held by Funding II. Both the Company and Funding II have made customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. The borrowings under the MS Credit Facility II will be subject to the leverage restrictions contained in the 1940 Act.

As of June 30, 2019 and September 30, 2018, the Company had outstanding debt under the MS Credit Facility II of $184,713 and $0, respectively. For the three and nine months ended June 30, 2019, the Company had borrowings on the MS Credit Facility II of $117,350 and $348,613, respectively, and repayments on the MS Credit Facility II of $109,428 and $164,078, respectively. For the three and nine months ended June 30, 2018, the Company had no borrowings or repayments on the MS Credit Facility II.



	For the three months ended June 30,					For the nine months ended June 30,
	2019			2018		2019			2018
Stated interest expense	$	1,991		$	—	$	3,179		$	—
Facility fees	38			—		64			—
Amortization of debt issuance costs	140			—		231			—
Total interest and other debt financing expenses	$	2,169		$	—	$	3,474		$	—
Cash paid for interest expense and facility fees	$	1,421		$	—	$	1,421		$	—
Annualized average stated interest rate	4.4		%	N/A		4.4		%	N/A
Average outstanding balance	$	181,512		$	—	$	95,814		$	—

Revolver: On June 22, 2016, the Company entered into the Adviser Revolver with the Investment Adviser with a maximum credit limit of $20,000 and expiration date of June 22, 2019. On June 21, 2019, the Company and the Investment Adviser amended the Adviser Revolver to and among other things, (a) increase the maximum credit limit to $40,000, and (b) change the expiration date to June 21, 2022. The Adviser Revolver bears an interest rate equal to the short-term Applicable Federal Rate, which was 2.4% as of June 30, 2019. As of June 30, 2019 and September 30, 2018, the Company had no outstanding debt under the Adviser Revolver. For the three and nine months ended June 30, 2019 and 2018, the Company had no borrowings and repayments, did not incur any interest expense and no cash was paid for interest on the Adviser Revolver.

Other Short-Term Borrowings: Borrowings with original maturities of less than one year are classified as short-term. The Company’s short-term borrowings are the result of investments that were sold under repurchase agreements. Investments sold under repurchase agreements are accounted for as collateralized borrowings as the sale of the investment does not qualify for sale accounting under ASC Topic 860 and remains as an investment on the Consolidated Statements of Financial Condition.

As of June 30, 2019, the Company had $3,605 of short-term borrowings and the fair value of the loans associated with the

short-term borrowings were $3,466. As of September 30, 2018, the Company had no short-term borrowings outstanding. For the three and nine months ended June 30, 2019, the annualized effective interest rate on short-term borrowings was 4.9% and 4.8%,

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Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

respectively, and interest expense was $26 and $276, respectively. For the three and nine months ended June 30, 2018, the annualized effective interest rate on short-term borrowings was 4.9%, and interest expense was $52. The net change in unrealized appreciation (depreciation) for the three and nine months ended June 30, 2019, reported within the net change in unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies was $105. The net change in unrealized appreciation (depreciation) for the three and nine months ended June 30, 2018, reported within the net change in unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies was $86.

For the three and nine months ended June 30, 2019, the average total debt outstanding (including the debt under the 2010 Debt Securitization, the 2014 Debt Securitization, the 2018 Debt Securitization, SBA debentures, Credit Facility, MS Credit Facility, MS Credit Facility II, Adviser Revolver and Other Short-Term Borrowings) was $1,040,683 and $993,221, respectively. For the three and nine months ended June 30, 2018, the average total debt outstanding (including the debt under the 2010 Debt Securitization, the 2014 Debt Securitization, SBA debentures, Credit Facility and Adviser Revolver) was $835,120 and $817,405, respectively.

For the three and nine months ended June 30, 2019, the effective annualized average interest rate, which includes amortization of debt financing costs and non-usage facility fees, on the Company's total debt was 4.2% and 4.2%, respectively. For the three and nine months ended June 30, 2018, the effective annualized average interest rate, which includes amortization of debt financing costs and non-usage facility fees, on the Company's total debt was 4.1% and 4.0%, respectively.

A summary of the Company’s maturity requirements for borrowings as of June 30, 2019 is as follows:



	Payments Due by Period
	Total		Less Than 1 Year		1 – 3 Years		3 – 5 Years		More Than 5 Years
2014 Debt Securitization	$	154,723	$	—	$	—	$	—	$	154,723
2018 Debt Securitization	408,200		—		—		—		408,200
SBA debentures	299,500		80,000		87,350		132,150		—
MS Credit Facility II	184,713		—		—		184,713		—
Other short-term borrowings	3,501		3,501		—		—		—
Total borrowings	$	1,050,637	$	83,501	$	87,350	$	316,863	$	562,923

Note 7. Commitments and Contingencies

Commitments: The Company had outstanding commitments to fund investments totaling $48,988 and $57,650 under various undrawn revolvers and other credit facilities as of June 30, 2019 and September 30, 2018, respectively. As described in Note 4, the Company had commitments of up to $100,117 and $99,593 to SLF as of June 30, 2019 and September 30, 2018, respectively, that may be contributed primarily for the purpose of funding new investments approved by the SLF investment committee.

Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as these involve future claims that may be made against the Company but that have not occurred. The Company expects the risk of any future obligations under these indemnifications to be remote.

Off-balance sheet risk: Off-balance sheet risk refers to an unrecorded potential liability that may result in a future obligation or loss, even though it does not appear on the Consolidated Statements of Financial Condition. The Company has entered and, in the future, may again enter into derivative instruments that contain elements of off-balance sheet market and credit risk. There were no commitments outstanding for derivative contracts as of June 30, 2019 and September 30, 2018. Derivative instruments can be affected by market conditions, such as interest rate volatility, which could impact the fair value of the derivative instruments. If market conditions move against the Company, it may not achieve the anticipated benefits of the derivative instruments and may realize a loss. The Company minimizes market risk through monitoring its investments and borrowings.

Concentration of credit and counterparty risk: Credit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of the contract. The Company has engaged and, in the future, may engage again in derivative transactions with counterparties. In the event that the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparties or issuers of the instruments. The Company’s maximum loss that it

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

could incur related to counterparty risk on its derivative instruments is the value of the collateral for that respective derivative instrument. It is the Company’s policy to review, as necessary, the credit standing of each counterparty.

Legal proceedings: In the normal course of business, the Company may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While there can be no assurance of the ultimate disposition of any such proceedings, the Company does not believe any disposition will have a material adverse effect on the Company’s consolidated financial statements.

Note 8. Financial Highlights

The financial highlights for the Company are as follows:



	Nine months ended June 30,
Per share data:⁽¹⁾	2019			2018
Net asset value at beginning of period	$	16.10		$	16.08
Net increase in net assets as a result of issuance of shares⁽²⁾	0.01			—
Distributions declared:
From net investment income	(0.95		)	(0.99		)
From capital gains	(0.13		)	(0.05		)
Net investment income	0.98			0.93
Net realized gain (loss) on investments and foreign currency transactions	(0.07		)	0.25
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation	0.01			(0.07		)
Net asset value at end of period	$	15.95		$	16.15
Per share market value at end of period	$	17.80		$	18.30
Total return based on market value⁽³⁾	1.23		%	3.21		%
Number of common shares outstanding	60,715,908			60,006,524



	Nine months ended June 30,
Listed below are supplemental data and ratios to the financial highlights:	2019			2018
Ratio of net investment income to average net assets^*	8.18		%	7.74		%
Ratio of total expenses to average net assets^(4)*	8.54		%	7.44		%
Ratio of incentive fees to average net assets	0.89		%	0.98		%
Ratio of expenses (without incentive fees) to average net assets^*	7.65		%	6.46		%
Total return based on average net asset value^(5)*	7.65		%	9.18		%
Net assets at end of period	$	968,220		$	969,322
Average debt outstanding	$	993,221		$	817,405
Average debt outstanding per share	$	16.36		$	13.60
Portfolio turnover^*	22.15		%	27.94		%
Asset coverage ratio⁽⁶⁾	227.84		%	258.50		%
Asset coverage ratio per unit⁽⁷⁾	$	2,278		$	2,585
Average market value per unit:⁽⁸⁾
2010 Debt Securitization	N/A			N/A
2014 Debt Securitization	N/A			N/A
2018 Debt Securitization	N/A			N/A
SBA Debentures	N/A			N/A
Credit Facility	N/A			N/A
MS Credit Facility	N/A			N/A
MS Credit Facility II	N/A			N/A
Revolver	N/A			N/A
Adviser Revolver	N/A			N/A

* Annualized for periods of less than one year.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)


⁽¹⁾	Based on actual number of shares outstanding at the end of the corresponding period or the weighted average shares outstanding for the period, unless otherwise noted, as appropriate.


⁽²⁾	Net increase in net assets as a result of issuance of shares related to shares issued through the DRIP.


⁽³⁾	Total return based on market value assumes distributions are reinvested in accordance with the DRIP. Total return does not include sales load.


⁽⁴⁾	Expenses, other than incentive fees, are annualized for a period less than one year.


⁽⁵⁾	Total return based on average net asset value is calculated as (a) the net increase in net assets resulting from operations divided by (b) the daily average of total net assets. Total return does not include sales load.

⁽⁶⁾

Effective February 6, 2019, in accordance with Section 61(a)(2) of the 1940 Act, with certain limited exceptions, the Company is allowed to borrow amounts such that its asset coverage, as defined in the 1940 ACT, is at least 150% after such borrowing (excluding the Company's SBA debentures pursuant to exemptive relief received by the Company from the SEC). Prior to February 6, 2019, in accordance with the 1940 Act, with certain limited exceptions, the Company was allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, was at least 200% after such borrowing (excluding the Company's SBA debentures pursuant to exemptive relief received by the Company from the SEC).

⁽⁷⁾

Asset coverage ratio per unit is the ratio of the carrying value of our total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage ratio per unit is expressed in terms of dollar amounts per $1,000 of indebtedness. These amounts exclude the SBA debentures pursuant to exemptive relief the Company received from the SEC on September 13, 2011.


⁽⁸⁾	Not applicable because such senior securities are not registered for public trading.

Note 9. Earnings Per Share

The following information sets forth the computation of the net increase in net assets per share resulting from operations for the three and nine months ended June 30, 2019 and 2018:



	Three months ended June 30,				Nine months ended June 30,
	2019		2018		2019		2018
Earnings available to stockholders	$	19,200	$	21,720	$	55,427	$	66,067
Basic and diluted weighted average shares outstanding	60,591,639		59,872,113		60,398,353		59,732,945
Basic and diluted earnings per share	$	0.32	$	0.36	$	0.92	$	1.11

Note 10. Dividends and Distributions

The Company’s dividends and distributions are recorded on the ex-dividend date. The following table summarizes the Company’s dividend declarations and distributions during the nine months ended June 30, 2019 and 2018:



Date Declared		Record Date	Payment Date	Amount Per Share			Cash Distribution		DRIP Shares Issued	DRIP Shares Value
Nine months ended June 30, 2019
	11/27/2018	12/12/2018	12/28/2018	$	0.44	⁽¹⁾	$	22,339	256,785	$	4,134
	02/05/2019	03/07/2019	03/28/2019	$	0.32		$	16,507	165,164	$	2,828
	05/07/2019	06/07/2019	06/28/2019	$	0.32		$	17,215	128,505	$	2,173
Nine months ended June 30, 2018
	11/17/2017	12/12/2017	12/28/2017	$	0.40	⁽²⁾	$	20,959	163,955	$	2,872
	02/06/2018	03/08/2018	03/30/2018	$	0.32		$	16,978	126,283	$	2,139
	05/04/2018	06/08/2018	06/28/2018	$	0.32		$	16,754	138,993	$	2,404


⁽¹⁾	Includes a special distribution of $0.12 per share.


⁽²⁾	Includes a special distribution of $0.08 per share.

TABLE OF CONTENTS

Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

Note 11. Pending Merger with Golub Capital Investment Corporation

On November 27, 2018, the Company entered into the Merger Agreement with GCIC, Merger Sub, the Investment Adviser and, for certain limited purposes, the Administrator. The Merger Agreement provides that, subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into GCIC, with GCIC continuing as the surviving company and as a wholly-owned subsidiary of the Company and, immediately thereafter, GCIC will merge with and into the Company, with the Company continuing as the surviving company. The parties to the Merger Agreement intend the Merger to be treated as a “reorganization” within the meaning of Section 368(a) of the Code.

In the Merger, each share of GCIC common stock issued and outstanding immediately prior to the effective time of the Merger will be converted into 0.865 shares of the Company’s common stock (the “Exchange Ratio”) in connection with the closing of the Merger. The Exchange Ratio will only be adjusted if, between the date of the Merger Agreement and the effective time of the Merger, the respective outstanding shares of the Company’s common stock or GCIC common stock shall have been increased or decreased or changed into or exchanged for a different number or kind of shares or securities, in each case, as a result of any reclassification, recapitalization, stock split, reverse stock split, split-up, combination or exchange of shares, or if a stock dividend or dividend payable in any other securities shall be declared with a record date within such period. No fractional shares of the Company’s common stock will be issued, and holders of GCIC common stock will receive cash in lieu of fractional shares.

Consummation of the Merger, which is currently anticipated to occur in September 2019, is subject to certain closing conditions, including (1) requisite approvals of the Company’s stockholders and GCIC’s stockholders, (2) approval of the Company’s stockholders of an amendment to the Investment Advisory Agreement to be effective upon closing of the Merger, (3) the absence of certain legal impediments to the consummation of the Merger, (4) effectiveness of the registration statement for the Company’s common stock to be issued as consideration in the Merger, (5) subject to certain exceptions, the accuracy of the representations and warranties and compliance with the covenants of each party to the Merger Agreement, (6) required regulatory approvals (including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended) and (7) a requirement that, as of a determination date that is within 48 hours (excluding Sundays and holidays) prior to the closing of the Merger, both (a) the value of the consideration paid by the Company, measured as the product of the Exchange Ratio and the greater of the closing market price and the NAV per share of the Company’s common stock, is greater than or equal to the NAV per share of GCIC common stock and (b) the product of the Exchange Ratio and the NAV per share of the Company’s common stock is less than or equal to the NAV per share of the GCIC common stock.

The Merger is expected to be accounted for as an asset acquisition of GCIC by the Company in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations-Related Issues. Generally, under asset acquisition accounting, acquiring assets in groups not only requires ascertaining the cost of the asset (or net assets), but also allocating that cost to the individual assets (or individual assets and liabilities) that make up the group. The cost of the group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair values of net identifiable assets acquired other than certain “non-qualifying” assets (for example cash) and does not give rise to goodwill. The final allocation of the purchase price will be determined after the Merger is completed and after completion of a final analysis to determine the estimated relative fair values of GCIC’s assets and liabilities.

In connection with the Merger, the Company is seeking stockholder approval to amend the Investment Advisory Agreement to revise (1) the cap on Incentive Fees paid to the Investment Adviser to be calculated on a per share, rather than aggregate, basis, and (2) the calculation of the Income Incentive Fee and Incentive Fee Cap to exclude any amounts resulting solely from the purchase accounting for any premium or discount paid for the acquisition of assets in a merger, such as the premium to NAV to be paid for the shares of GCIC’s common stock in the Merger.

On July 11, 2019, the Company filed an amended registration statement on Form N-14, which included a joint proxy statement of the Company and GCIC and a prospectus of the Company. The registration statement on Form N-14 was declared effective by the SEC on July 12, 2019. Special meetings for each of the Company's and GCIC's stockholders are scheduled for September 4, 2019 to vote on the matters described in the joint proxy statement as required by the Merger Agreement.

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Golub Capital BDC, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(In thousands, except shares and per share data)

Note 12. Subsequent Events

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through August 7, 2019, the date the financial statements were available to be issued. There are no subsequent events to disclose except for the following:

On August 6, 2019, the Board declared a quarterly distribution of $0.32 per share payable on September 27, 2019 to holders of record as of August 19, 2019.

On August 6, 2019, the Board reapproved the Program and increased the amount of shares of the Company's outstanding common stock that may be repurchased on the open market at prices below the Company's NAV as reported in its most recent financial statements to $150,000.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information contained in this section should be read in conjunction with our interim and unaudited consolidated financial statements and related notes thereto appearing elsewhere in this quarterly report on Form 10-Q. In this report, “we,” “us,” “our” and “Golub Capital BDC” refer to Golub Capital BDC, Inc. and its consolidated subsidiaries.

Forward-Looking Statements

Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties, including statements as to:


•	our future operating results;


•	our business prospects and the prospects of our portfolio companies;


•	the effect of investments that we expect to make and the competition for those investments;


•	our contractual arrangements and relationships with third parties;


•	actual and potential conflicts of interest with GC Advisors LLC, or GC Advisors, and other affiliates of Golub Capital LLC, collectively, Golub Capital;


•	the dependence of our future success on the general economy and its effect on the industries in which we invest;


•	the ability of our portfolio companies to achieve their objectives;


•	the use of borrowed money to finance a portion of our investments;


•	the adequacy of our financing sources and working capital;


•	the timing of cash flows, if any, from the operations of our portfolio companies;


•	general economic and political trends and other external factors;


•	the ability of GC Advisors to locate suitable investments for us and to monitor and administer our investments;


•	the ability of GC Advisors or its affiliates to attract and retain highly talented professionals;


•	our ability to qualify and maintain our qualification as a regulated investment company, or RIC, and as a business development company;


•	general price and volume fluctuations in the stock markets;


•	the impact on our business of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations issued thereunder and any actions toward repeal thereof;


•	the effect of changes to tax legislation and our tax position; and


•	the Merger (as defined below), the likelihood the Merger is completed and the anticipated timing of its completion

Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words. The forward looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth elsewhere in this quarterly report on Form 10-Q and as “Risk Factors” in our annual report on Form 10-K for the year ended September 30, 2018.

We have based the forward-looking statements included in this report on information available to us on the date of this report. Actual results could differ materially from those anticipated in our forward-looking statements and future results could differ materially from historical performance. You are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the Securities and Exchange Commission, or the SEC, including annual reports on Form 10-K, registration statements on Form N-2, quarterly reports on Form 10-Q and current reports on Form 8-K. This quarterly report on Form 10-Q contains statistics and other data that have been obtained from or compiled from information made available by third-party service providers. We have not independently verified such statistics or data.

Overview

We are an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, or the 1940 Act. In addition, for U.S. federal income tax purposes, we have elected to be treated as a RIC under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code. As a business development company and a RIC, we are also subject to certain constraints, including limitations imposed by the 1940 Act and the Code.

Our shares are currently listed on The Nasdaq Global Select Market under the symbol “GBDC”.

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Our investment objective is to generate current income and capital appreciation by investing primarily in one stop (a loan that combines characteristics of traditional first lien senior secured loans and second lien or subordinated loans and that are often referred to by other middle-market lenders as unitranche loans) and other senior secured loans of U.S. middle-market companies. We may also selectively invest in second lien and subordinated loans of, and warrants and minority equity securities in U.S. middle-market companies. We intend to achieve our investment objective by (1) accessing the established loan origination channels developed by Golub Capital, a leading lender to U.S. middle-market companies with over $30.0 billion in capital under management as of June 30, 2019, (2) selecting investments within our core middle-market company focus, (3) partnering with experienced private equity firms, or sponsors, in many cases with whom Golub Capital has invested alongside in the past, (4) implementing the disciplined underwriting standards of Golub Capital and (5) drawing upon the aggregate experience and resources of Golub Capital.

Our investment activities are managed by GC Advisors and supervised by our board of directors of which a majority of the members are independent of us, GC Advisors and its affiliates.

Under an investment advisory agreement, or the Investment Advisory Agreement, which was most recently reapproved by our board of directors in May 2019, we have agreed to pay GC Advisors an annual base management fee based on our average adjusted gross assets as well as an incentive fee based on our investment performance. Under an administration agreement, or the Administration Agreement, we are provided with certain administrative services by an administrator, or the Administrator, which is currently Golub Capital LLC. Under the Administration Agreement, we have agreed to reimburse the Administrator for our allocable portion (subject to the review and approval of our independent directors) of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement.

We seek to create a portfolio that includes primarily one stop and other senior secured loans by primarily investing approximately $5.0 million to $30.0 million of capital, on average, in the securities of U.S. middle-market companies. We may also selectively invest more than $30.0 million in some of our portfolio companies and generally expect that the size of our individual investments will vary proportionately with the size of our capital base.

We generally invest in securities that have been rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated. These securities, which may be referred to as “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. In addition, many of our debt investments have floating interest rates that reset on a periodic basis and typically do not fully pay down principal prior to maturity, which may increase our risk of losing part or all of our investment.

As of June 30, 2019 and September 30, 2018, our portfolio at fair value was comprised of the following:



	As of June 30, 2019				As of September 30, 2018
Investment Type	Investments at Fair Value (In thousands)		Percentage of Total Investments		Investments at Fair Value (In thousands)		Percentage of Total Investments
Senior secured	$	264,915	13.8	%	$	231,169	13.0	%
One stop	1,529,670		79.5		1,430,196		80.2
Second lien	10,928		0.6		9,435		0.5
Subordinated debt	171		0.0	*	251		0.0	*
LLC equity interests in SLF ⁽¹⁾	71,742		3.7		71,084		4.0
Equity	45,395		2.4		40,706		2.3
Total	$	1,922,821	100.0	%	$	1,782,841	100.0	%



*	Represents an amount less than 0.1%.
⁽¹⁾	Proceeds from the limited liability company, or LLC, equity interests invested in Senior Loan Fund LLC, or SLF, were utilized by SLF to invest in senior secured loans.

One stop loans include loans to technology companies undergoing strong growth due to new services, increased adoption and/or entry into new markets. We refer to loans to these companies as late stage lending loans. Other targeted characteristics of late stage lending businesses include strong customer revenue retention rates, a diversified customer base and backing from growth equity or venture capital firms. In some cases, the borrower’s high revenue growth is supported by a high level of discretionary spending. As part of the underwriting of such loans and consistent with industry practice, we may adjust our characterization of the earnings of such borrowers for a reduction or elimination of such discretionary expenses, if appropriate. As of June 30, 2019 and September 30, 2018, one stop loans included $199.1 million and $169.4 million, respectively, of late stage lending loans at fair value.

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As of June 30, 2019 and September 30, 2018, we had debt and equity investments in 225 and 199 portfolio companies, respectively, and an investment in SLF.

The following table shows the weighted average income yield and weighted average investment income yield of our earning portfolio company investments, which represented nearly 100% of our debt investments, as well as the total return based on our average net asset value, and the total return based on the change in the quoted market price of our stock and assuming distributions were reinvested in accordance with our dividend reinvestment plan, or DRIP, in each case for the three and nine months ended June 30, 2019 and 2018 was as follows:



	For the three months ended June 30,		For the nine months ended June 30,
	2019	2018	2019	2018
Weighted average annualized income yield ⁽¹⁾	8.6%	8.5%	8.7%	8.2%
Weighted average annualized investment income yield ⁽²⁾	9.2%	9.1%	9.2%	8.8%
Total return based on average net asset value ^(3)*	7.9%	9.0%	7.7%	9.2%
Total return based on market value ⁽⁴⁾	1.4%	4.2%	1.2%	3.2%

* Annualized for periods of less than one year.


⁽¹⁾	Represents income from interest and fees, excluding amortization of capitalized fees and discounts, divided by the average fair value of earning portfolio company investments, and does not represent a return to any investor in us.


⁽²⁾	Represents income from interest, fees and amortization of capitalized fees and discounts divided by the average fair value of earning portfolio investments, and does not represent a return to any investor in us.


⁽³⁾	Total return based on average net asset value is calculated as (a) the net increase in net assets resulting from operations divided by (b) the daily average of total net assets. Total return does not include sales load.


⁽⁴⁾	Total return based on market value assumes distributions are reinvested in accordance with the DRIP. Total return does not include sales load.

Revenues: We generate revenue in the form of interest and fee income on debt investments and capital gains and distributions, if any, on portfolio company investments that we originate or acquire. Our debt investments, whether in the form of senior secured, one stop, second lien or subordinated loans, typically have a term of three to seven years and bear interest at a fixed or floating rate. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. The frequency or volume of these repayments fluctuates significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. In some cases, our investments provide for deferred interest payments or payment-in-kind, or PIK, interest. The principal amount of loans and any accrued but unpaid interest generally become due at the maturity date. In addition, we may generate revenue in the form of commitment, origination, amendment, structuring or due diligence fees, fees for providing managerial assistance and consulting fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts as interest income. We record prepayment premiums on loans as fee income. For additional details on revenues, see “Critical Accounting Policies—Revenue Recognition.”

We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the amortized cost basis of the investment or derivative instrument, without regard to unrealized gains or losses previously recognized. We record current period changes in fair value of investments and derivative instruments that are measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments and foreign currency translation in the Consolidated Statements of Operations.

Expenses: Our primary operating expenses include the payment of fees to GC Advisors under the Investment Advisory Agreement and interest expense on our outstanding debt. We bear all other out-of-pocket costs and expenses of our operations and transactions, including:


•	calculating our net asset value, or NAV (including the cost and expenses of any independent valuation firm);

•

fees and expenses incurred by GC Advisors payable to third parties, including agents, consultants or other advisors, in monitoring financial and legal affairs for us and in monitoring our investments and performing due diligence on our prospective portfolio companies or otherwise relating to, or associated with, evaluating and making investments, which fees and expenses may include, among other items, due diligence reports, appraisal reports, any studies that may be commissioned by GC Advisors and travel and lodging expenses;


•	expenses related to unsuccessful portfolio acquisition efforts;

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•	offerings of our common stock and other securities;


•	administration fees and expenses, if any, payable under the Administration Agreement (including payments based upon our allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement, including rent and the allocable portion of the cost of our chief compliance officer, chief financial officer and their respective staffs);


•	fees payable to third parties, including agents, consultants or other advisors, relating to, or associated with, evaluating and making investments in portfolio companies, including costs associated with meeting financial sponsors;


•	transfer agent, dividend agent and custodial fees and expenses;


•	U.S. federal and state registration and franchise fees;


•	all costs of registration and listing our shares on any securities exchange;


•	U.S. federal, state and local taxes;


•	independent directors’ fees and expenses;


•	costs of preparing and filing reports or other documents required by the SEC or other regulators;


•	costs of any reports, proxy statements or other notices to stockholders, including printing costs;


•	costs associated with individual or group stockholders;


•	costs associated with compliance under the Sarbanes-Oxley Act;


•	our allocable portion of any fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums;


•	direct costs and expenses of administration, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors and outside legal costs;


•	proxy voting expenses; and


•	all other expenses incurred by us or the Administrator in connection with administering our business.

We expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines.

GC Advisors, as collateral manager for Golub Capital BDC 2010-1 LLC, or the 2010 Issuer, our indirect subsidiary, under a collateral management agreement, or the 2010 Collateral Management Agreement, was entitled to receive an annual fee in an amount equal to 0.35% of the principal balance of the portfolio loans held by the 2010 Issuer at the beginning of the collection period relating to each payment date, which is payable in arrears on each payment date. Under the 2010 Collateral Management Agreement, the term ‘‘collection period’’ referred to a quarterly period running from the day after the end of the prior collection period to the fifth business day of the calendar month in which a payment date occurs. Following redemption of the notes issued by the 2010 Issuer, or the 2010 Notes, on July 20, 2018, the 2010 Collateral Management Agreement was terminated.

GC Advisors, as collateral manager for Golub Capital BDC 2014-LLC, or the 2014 Issuer, our wholly-owned subsidiary, under a collateral management agreement, or the 2014 Collateral Management Agreement, is entitled to receive an annual fee in an amount equal to 0.25% of the principal balance of the portfolio loans held by the 2014 Issuer at the beginning of the collection period relating to each payment date, which is payable in arrears on each payment date. Under the 2014 Collateral Management Agreement, the term ‘‘collection period’’ refers to a quarterly period running from the day after the end of the prior collection period to the tenth business day prior to the payment date.

GC Advisors, as collateral manager for Golub Capital BDC CLO III LLC, or the 2018 Issuer, our indirect subsidiary, under a collateral management agreement, or the 2018 Collateral Management Agreement, is entitled to receive an annual fee in an amount equal to 0.25% of the principal balance of the portfolio loans held by the 2018 Issuer at the beginning of the collection period relating to each payment date, which is payable in arrears on each payment date. Under the 2018 Collateral Management Agreement, the term "collection period" refers to the period commencing on the third business day prior to the preceding payment date and ending on (but excluding) the third business day prior to such payment date.

Collateral management fees were paid directly by the 2010 Issuer and are paid directly by the 2014 Issuer and 2018 Issuer to GC Advisors and are offset against the management fees payable under the Investment Advisory Agreement. In addition, the 2010 Issuer and 2014 Issuer paid Wells Fargo Securities, LLC structuring and placement fees for its services in connection with the initial structuring and subsequent amendments of a $350.0 million term debt securitization, or the 2010 Debt Securitization, and the initial structuring of a $402.6 million term debt securitization, or the 2014 Debt Securitization. The 2018 Issuer paid Morgan Stanley & Co. LLC structuring and placement fees for its services in connection with the structuring of a $602.4 million term debt securitization, or the 2018 Debt Securitization. Term debt securitizations are also known as collateralized loan obligations, or CLOs, and are a form of secured financing incurred by us, which is consolidated by us and subject to our overall asset coverage requirement. The 2010 Issuer, the 2014 Issuer and 2018 Issuer also agreed to pay ongoing administrative expenses to the trustee, collateral manager, independent accountants, legal counsel, rating agencies and independent managers in connection with developing and maintaining reports, and

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providing required services in connection with the administration of the 2010 Debt Securitization, the 2014 Debt Securitization, and 2018 Debt Securitization, and collectively the Debt Securitizations, as applicable.

We believe that these administrative expenses approximate the amount of ongoing fees and expenses that we would be required to pay in connection with a traditional secured credit facility. Our common stockholders indirectly bear all of these expenses.

Pending Merger with GCIC: On November 27, 2018, we entered into an Agreement and Plan of Merger, or the Merger Agreement, with Golub Capital Investment Corporation, a Maryland corporation, or GCIC, Fifth Ave Subsidiary Inc., a Maryland corporation and our wholly owned subsidiary, or the Merger Sub, GC Advisors and, for certain limited purposes, the Administrator. The Merger Agreement provides that, subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into GCIC, with GCIC continuing as the surviving company and as a wholly-owned subsidiary of us and, immediately thereafter, GCIC will merge with and into us, with us continuing as the surviving company. See Note 11 in the notes to our consolidated financial statements for further information.

On July 11, 2019, we filed an amended registration statement on Form N-14, which included a joint proxy statement of us and GCIC and a prospectus of us. The registration statement on Form N-14 was declared effective by the SEC on July 12, 2019. Special meetings for each of our and GCIC's stockholders are scheduled for September 4, 2019 to vote on the matters described in the joint proxy statement as required by the Merger Agreement.

Recent Developments

On August 6, 2019, our board of directors declared a quarterly distribution of $0.32 per share payable on September 27, 2019 to holders of record as of August 19, 2019.

On August 6, 2019, our board of directors reapproved our share repurchase plan, or the Program, and increased the amount our outstanding common stock that may be repurchased on the open market at prices below our NAV as reported in its most recent financial statements to $150.0 million. The Program may be implemented at the discretion of management. The shares may be repurchased from time to time at prevailing market prices, through open market transactions, including block transactions.

Consolidated Results of Operations

Consolidated operating results for the three and nine months ended June 30, 2019 and 2018 are as follows:



	For the three months ended June 30,						Variances			For the nine months ended June 30,						Variances
	2019			2018			2019 vs. 2018			2019			2018			2019 vs. 2018
	(In thousands)									(In thousands)
Interest income	$	38,828		$	33,527		$	5,301		$	115,409		$	96,180		$	19,229
Income from accretion of discounts and origination fees	2,694			2,350			344			6,624			7,420			(796		)
Dividend income from LLC equity interests in SLF	—			2,050			(2,050		)	—			5,868			(5,868		)
Dividend income	59			10			49			117			620			(503		)
Fee income	524			459			65			1,171			1,655			(484		)
Total investment income	42,105			38,396			3,709			123,321			111,743			11,578
Total expenses	22,699			19,680			3,019			64,042			55,988			8,054
Net investment income	19,406			18,716			690			59,279			55,755			3,524
Net realized gain (loss) on investments and foreign currency transactions	(700		)	14,839			(15,539		)	(4,539		)	14,702			(19,241		)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translation	494			(11,835		)	12,329			687			(4,390		)	5,077
Net increase in net assets resulting from operations	$	19,200		$	21,720		$	(2,520	)	$	55,427		$	66,067		$	(10,640	)
Average earning debt investments, at fair value⁽¹⁾	$	1,828,616		$	1,599,024		$	229,592		$	1,798,034		$	1,591,820		$	206,214


⁽¹⁾	Does not include our investment in LLC equity interests in SLF.

Net income can vary substantially from period to period for various reasons, including the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of operating results may not be meaningful.

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Investment Income

Investment income increased from the three months ended June 30, 2018 to the three months ended June 30, 2019 by $3.7 million primarily as a result of an increase in the average earning debt investments balance, which is the average balance of accruing loans in our investment portfolio, of $229.6 million and an increase in the London Interbank Offered Rate, or LIBOR. These increases were partially offset by a decline in dividend income from our LLC equity interests in SLF of $2.1 million.

Investment income increased from the nine months ended June 30, 2018 to the nine months ended June 30, 2019 by $11.6 million primarily as a result of an increase in the average earning debt investments balance, which is the average balance of accruing loans in our investment portfolio, of $206.2 million and an increase in LIBOR. These increases were partially offset by a decline in accretion of discounts resulting from decreased debt investment payoffs and a decline in dividend income from our LLC equity interests in SLF of $5.9 million.

The income yield by debt security type for the three and nine months ended June 30, 2019 and 2018 was as follows:



	For the three months ended June 30,		For the nine months ended June 30,
	2019	2018	2019	2018
Senior secured	7.6%	7.2%	7.5%	6.5%
One stop	8.7%	8.7%	8.8%	8.5%
Second lien	10.9%	10.5%	10.8%	9.9%
Subordinated debt	7.6%	20.4%	8.5%	20.0%

Annualized income yields on one stop and senior secured loans increased for the three and nine months ended June 30, 2019 primarily due to the rise in LIBOR. As of June 30, 2019, we have three second lien investments and three subordinated debt investments as shown in the Consolidated Schedule of Investments. Due to the limited number of second lien and subordinated debt investments, quarterly income yields on second lien and subordinated debt investments can be significantly impacted by the addition, subtraction or refinancing of one investment.

For additional details on investment yields and asset mix, refer to the “Liquidity and Capital Resources - Portfolio Composition, Investment Activity and Yield” section below.

Expenses

The following table summarizes our expenses for the three and nine months ended June 30, 2019 and 2018:



	For the three months ended June 30,				Variances			For the nine months ended June 30,					Variances
	2019		2018		2019 vs. 2018			2019			2018		2019 vs. 2018
	(In thousands)							(In thousands)
Interest and other debt financing expenses	$	10,388	$	7,749	$	2,639		$	29,672		$	21,934	$	7,738
Amortization of debt issuance costs	461		807		(346		)	1,597			2,242		(645		)
Base management fee	6,675		6,125		550			19,708			17,984		1,724
Income incentive fee	3,500		2,832		668			9,696			7,181		2,515
Capital gain incentive fee	29		741		(712		)	(1,118		)	2,274		(3,392		)
Professional fees	727		705		22			1,981			2,168		(187		)
Administrative service fee	681		601		80			2,043			1,840		203
General and administrative expenses	238		120		118			463			365		98
Total expenses	$	22,699	$	19,680	$	3,019		$	64,042		$	55,988	$	8,054
Average debt outstanding	$	1,040,682	$	835,120	$	205,562		$	993,221		$	817,405	$	175,816

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Interest Expense

Interest and other debt financing expenses increased by $2.6 million from the three months ended June 30, 2018 to the three months ended June 30, 2019 primarily due an increase in the weighted average of outstanding borrowings from $835.1 million for the three months ended June 30, 2018 to $1,040.7 million for the three months ended June 30, 2019. Interest and other debt financing expenses increased by $7.7 million from the nine months ended June 30, 2018 to the nine months ended June 30, 2019 primarily due to an increase in the weighted average of outstanding borrowings from $817.4 million for the nine months ended June 30, 2018 to $993.2 million for the nine months ended June 30, 2019. For more information about our outstanding borrowings for the three and nine months ended June 30, 2019 and 2018, including the terms thereof, see Note 6. Borrowings in the notes to our consolidated financial statements and the “Liquidity and Capital Resources” section below.

The effective average interest rate on our outstanding debt increased to 4.2% for the three months ended June 30, 2019 from 4.1% for the three months ended June 30, 2018 primarily due to an increase in LIBOR, which is the index that determines the interest rate on our floating rate liabilities. The effective average interest rate on our outstanding debt increased to 4.2% for the nine months ended June 30, 2019 from 4.0% for the nine months ended June 30, 2018 primarily due to an increase in LIBOR.

Management Fee

The base management fee increased as a result of a sequential increase in average adjusted gross assets from the three and nine months ended June 30, 2018 to the three and nine months ended June 30, 2019.

Incentive Fees

The incentive fee payable under the Investment Advisory Agreement consists of two parts: (1) the income component, or the Income Incentive Fee, and (2) the capital gains component, or the Capital Gain Incentive Fee. The Income Incentive Fee increased by $0.7 million and $2.5 million, respectively, from the three and nine months ended June 30, 2018 to the three and nine months ended June 30, 2019, primarily as a result of the increase in Pre-Incentive Fee Net Investment Income (as defined in Note 3 of our consolidated financial statements) of $0.6 million and $2.6 million, respectively. For the three months ended June 30, 2019, while still not fully through the catch-up provision of the Income Incentive Fee calculation, the Income Incentive Fee as a percentage of Pre-Incentive Fee Net Investment Income increased to 15.3% compared to 12.7% for the three months ended June 30, 2018. For the nine months ended June 30, 2019, while still not fully through the catch-up provision of the Income Incentive Fee calculation, the Income Incentive Fee as a percentage of Pre-Incentive Fee Net Investment Income increased to 14.3% compared to 11.0% for nine months ended June 30, 2018.

The Capital Gain Incentive Fee equals (a) 20.0% of our Capital Gain Incentive Fee Base (as defined below), if any, calculated in arrears as of the end of each calendar year less (b) the aggregate amount of any previously paid Capital Gain Incentive Fees. Our “Capital Gain Incentive Fee Base” equals (1) the sum of (i) realized capital gains, if any, on a cumulative positive basis from the date the we elected to become a business development company through the end of each calendar year, (ii) all realized capital losses on a cumulative basis and (iii) all unrealized capital depreciation on a cumulative basis less (2) all unamortized deferred financing costs, if and to the extent such costs exceed all unrealized capital appreciation on a cumulative basis. In addition, in accordance with generally accepted accounting principles in the United States of America, or GAAP, we are required to also include the aggregate unrealized capital appreciation on investments in the calculation and accrue the capital gain incentive fee as if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Advisory Agreement.

The accrual for the capital gain incentive fee under GAAP was less than $0.1 million and a reversal of $1.1 million, or $0.02 per share for the three and nine months ended June 30, 2019, respectively. The accrual for the capital gain incentive fee under GAAP was $0.7 million, or $0.02 per share, and $2.3 million, or $0.04 per share for the three and nine months ended June 30, 2018, respectively. The decrease in accruals for a capital gain incentive fee under GAAP for the three and nine months ended June 30, 2019 from the three and nine months ended June 30, 2018, was primarily the result of unrealized depreciation of debt and equity investments. For additional details on unrealized appreciation and depreciation of investments, refer to the “Net Realized and Unrealized Gains and Losses” section below.

The cumulative capital gain incentive fee accrued in accordance with GAAP as of June 30, 2019 and 2018 was $4.5 million and $7.2 million, respectively, none of which was payable as a Capital Gain Incentive Fee pursuant to the Investment Advisory Agreement. Any payment due under the terms of the Investment Advisory Agreement is calculated in arrears at the end of each calendar year. We paid

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$1.6 million and $1.2 million in Capital Gain Incentive Fees calculated under the terms of Investment Advisory Agreement as of December 31, 2018 and 2017, respectively. We did not pay any Capital Gain Incentive Fee calculated under the terms of Investment Advisory Agreement prior to December 31, 2017.

Professional Fees, Administrative Service Fee, and General and Administrative Expenses

In total, professional fees, the administrative service fee, and general and administrative expenses increased by $0.2 million from the three months ended June 30, 2018 to the three months ended June 30, 2019 and increased by $0.1 million from the nine months ended June 30, 2018 to the nine months ended June 30, 2019. In general, we expect certain of our operating expenses, including professional fees, the administrative service fee, and other general and administrative expenses to decline as a percentage of our total assets during periods of growth and increase as a percentage of our total assets during periods of asset declines.

The Administrator pays for certain expenses incurred by us. These expenses are subsequently reimbursed in cash. Total expenses reimbursed by us to the Administrator for the three and nine months ended June 30, 2019 and 2018 were $0.4 million and $1.7 million, respectively.

As of June 30, 2019 and September 30, 2018, included in accounts payable and accrued expenses were $1.3 million and $0.4 million, respectively, for accrued expenses paid on behalf of us by the Administrator.

Excise Tax Expense

We have elected to be treated as a RIC under Subchapter M of the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. In order to be subject to tax as a RIC, we are required to meet certain source of income and asset diversification requirements, as well as timely distribute to our stockholders dividends for U.S. federal income tax purposes of an amount generally at least equal to 90% of investment company taxable income, as defined by the Code, and determined without regard to any deduction for dividends paid for each tax year. We have made and intend to continue to make the requisite distributions to our stockholders that will generally relieve us from U.S. federal income taxes.

Depending on the level of taxable income earned in a tax year, we may choose to retain taxable income in excess of current year distributions into the next tax year in an amount less than what would trigger payments of U.S. federal income tax under Subchapter M of the Code. We may then be required to incur a 4% excise tax on such income. To the extent that we determine that our estimated current year annual taxable income may exceed estimated current year distributions, we accrue excise tax, if any, on estimated excess taxable income as taxable income is earned. For the three and nine months ended June 30, 2019 and 2018, we did not incur any expense for U.S. federal excise tax.

Net Realized and Unrealized Gains and Losses

The following table summarizes our net realized and unrealized gains (losses) for the periods presented:



	For the three months ended June 30,						Variances			For the nine months ended June 30,						Variances
	2019			2018			2019 vs. 2018			2019			2018			2019 vs. 2018
	(In thousands)									(In thousands)
Net realized gain (loss) on investments	$	(717	)	$	14,881		$	(15,598	)	$	(4,517	)	$	14,744		$	(19,261	)
Foreign currency transactions	17			(42		)	59			(22		)	(42		)	20
Net realized gain (loss) on investments and foreign currency transactions	$	(700	)	$	14,839		$	(15,539	)	$	(4,539	)	$	14,702		$	(19,241	)
Unrealized appreciation on investments	11,003			10,756			247			27,393			23,003			4,390
Unrealized (depreciation) on investments	(10,317		)	(22,102		)	11,785			(27,785		)	(26,968		)	(817		)
Unrealized appreciation (depreciation) on investments in SLF⁽¹⁾	—			(575		)	575			1,183			(511		)	1,694
Unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies	(192		)	86			(278		)	(104		)	86			(190		)
Net change in unrealized appreciation (depreciation) on investments, investments in SLF and foreign currency translation	$	494		$	(11,835	)	$	12,329		$	687		$	(4,390	)	$	5,077


⁽¹⁾	Unrealized appreciation (depreciation) on investments in SLF includes our investment in LLC equity interests in SLF.

For the three months ended June 30, 2019, we had a net realized loss on investments and foreign currency transactions of $0.7 million primarily due to a realized loss recognized on the sale of one portfolio company investment which was partially offset by realized

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gains on the sale of two portfolio company equity investments. For the nine months ended June 30, 2019, we had a net realized loss of $4.5 million primarily due to realized losses recognized on the restructure of one portfolio company investment, realized losses on the sale of a few portfolio company investments, partially offset by the realized gains from the sale of a few portfolio company investments.

For the three months ended June 30, 2019, we had $11.0 million in unrealized appreciation on 134 portfolio company investments, which was partially offset by $10.3 million in unrealized depreciation on 199 portfolio company investments. For the nine months ended June 30, 2019, we had $27.4 million in unrealized appreciation on 176 portfolio company investments, which was offset by $27.8 million in unrealized depreciation on 197 portfolio company investments. Unrealized appreciation during the three and nine months ended June 30, 2019 resulted from an increase in fair value primarily due to the rise in market prices of portfolio company investments and the reversal of the net unrealized depreciation associated with the sale or restructure of a few portfolio company investments. Unrealized depreciation resulted from the amortization of discounts, negative credit related adjustments that caused a reduction in fair value and the reversal of the net unrealized appreciation associated with the sale of portfolio company investments during the three and nine months ended June 30, 2019.

For the three months ended June 30, 2019, we had less than $0.1 million in unrealized appreciation on our investment in SLF LLC equity interests, which was primarily driven by net investment income associated with SLF's investment portfolio netted against net negative credit related adjustments at SLF. For the nine months ended June 30, 2019, we had $1.2 million in unrealized appreciation on our investment in SLF LLC equity interests, which was primarily driven by net investment income associated with SLF's investment portfolio netted against net negative credit related adjustments at SLF. SLF did not pay a dividend to us for the three and nine months ended June 30, 2019.

For the three months ended June 30, 2018, we had a net realized gain on investments and foreign currency transactions of $14.8 million primarily due to sale of equity investments in seven portfolio companies, which was substantially greater than in recent periods. For the nine months ended June 30, 2018, we had a net realized gain on investments and foreign currency transactions of $14.7 million primarily due to sale of equity investments in seven portfolio companies and the sale of portfolio company investments to SLF, which was partially offset by the write off of one non-accrual portfolio company investment.

For the three months ended June 30, 2018, we had $10.8 million in unrealized appreciation on 112 portfolio company investments, which was offset by $22.1 million in unrealized depreciation on 161 portfolio company investments. For the nine months ended June 30, 2018, we had $23.0 million in unrealized appreciation on 146 portfolio company investments, which was offset by $27.0 million in unrealized depreciation on 161 portfolio company investments. Unrealized appreciation during the three and nine months ended June 30, 2018 resulted from an increase in fair value primarily due to the rise in market prices of portfolio company investments. Unrealized depreciation primarily resulted from the reversal of the net unrealized appreciation associated with the sales of portfolio company investments, the amortization of discounts, and negative credit related adjustments that caused a reduction in fair value during the three and nine months ended June 30, 2018.

For the three and nine months ended June 30, 2018, we had $0.6 million and $0.5 million, respectively, in unrealized depreciation on our investment in SLF LLC equity interests, which was primarily driven by net negative credit related adjustments associated with SLF's investment portfolio.

Liquidity and Capital Resources

For the nine months ended June 30, 2019, we experienced a net increase in cash, cash equivalents, foreign currencies and restricted cash and cash equivalents and restricted foreign currencies of $64.9 million. During the period, cash used in operating activities was $80.5 million, primarily as a result of fundings of portfolio investments of $456.5 million, partially offset by the proceeds from principal payments and sales of portfolio investments of $323.5 million and net investment income of $59.3 million. Lastly, cash provided by financing activities was $145.4 million, primarily driven by borrowings on debt of $1,200.4 million that were partially offset by repayments of debt of $999.2 million and distributions paid of $56.1 million.

For the nine months ended June 30, 2018, we experienced a net increase in cash, cash equivalents, foreign currencies and restricted cash and cash equivalents of $9.6 million. During the period, cash used in operating activities was $38.9 million, primarily as a result of fundings of portfolio investments of $464.2 million, partially offset by the proceeds from principal payments and sales of portfolio investments of $364.8 million and net investment income of $55.8 million. Lastly, cash provided by financing activities was $48.6 million, primarily driven by borrowings on debt of $414.8 million that were partially offset by repayments of debt of $320.0 million and distributions paid of $54.7 million.

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As of June 30, 2019 and September 30, 2018, we had cash and cash equivalents of $8.2 million and $5.9 million, respectively. In addition, we had foreign currencies of $0.1 million and $0.2 million as of June 30, 2019 and September 30, 2018, respectively, restricted cash and cash equivalents of $101.5 million and $39.7 million as of June 30, 2019 and September 30, 2018, respectively, and restricted foreign currencies of $0.8 million as of June 30, 2019. We held no restricted foreign currencies as of September 30, 2018, respectively. Cash, cash equivalents and foreign currencies are available to fund new investments, pay operating expenses and pay distributions. As of June 30, 2019, $54.6 million of our restricted cash, cash equivalents and restricted foreign currencies could be used to fund new investments that meet the investment guidelines established in the Debt Securitizations, which are described in further detail in Note 6 to our consolidated financial statements, and for the payment of principal and interest expense on the notes issued in the Debt Securitizations. As of June 30, 2019, $2.8 million of our restricted cash, cash equivalents and restricted foreign currencies was held by Funding and could be used to fund investments. As of June 30, 2019, $11.6 million of our restricted cash, cash equivalents and restricted foreign currencies could be used to fund new investments that meet the guidelines under new senior secured revolving credit facility, or MS Credit Facility II, that Golub Capital BDC Funding II LLC, or Funding II, our wholly-owned subsidiary, entered into on February 1, 2019, with Morgan Stanley Senior Funding, Inc., as the administrative agent, each of the lenders from time to time party thereto, each of the securitization subsidiaries from time to time party thereto, and Wells Fargo Bank, N.A., as collateral agent, account bank and collateral custodian, as well as for the payment of interest expense and revolving debt of the MS Credit Facility II. As of June 30, 2019, $32.9 million of our restricted cash, cash equivalents and restricted foreign currencies could be used to fund new investments that meet the regulatory and investment guidelines established by the U.S. Small Business Administration, or SBA, for our small business investment company, or SBIC, subsidiaries which are described in further detail in Note 6 to our consolidated financial statements, and for interest expense and fees on our outstanding SBA debentures.

On February 1, 2019, Funding II entered into the MS Credit Facility II. As of June 30, 2019, the MS Credit Facility II allowed Funding II to borrow up to $200.0 million at any one time outstanding, subject to leverage and borrowing base restrictions. As of June 30, 2019, we had $184.7 million outstanding under the MS Credit Facility II. As of June 30, 2019, subject to leverage and borrowing base restrictions, we had approximately $15.3 million of remaining commitments and $15.3 million of availability on the MS Credit Facility II.

In connection with entry into the MS Credit Facility II, on February 4, 2019, Funding repaid all $97.1 million of the debt outstanding at the Credit Facility. Following such repayment, the agreements governing the Credit Facility were terminated. Prior to termination, the Credit Facility allowed Funding to borrow up to $170.0 million at any one time outstanding, subject to leverage and borrowing base restrictions. As of September 30, 2018, we had $136.0 million outstanding under the Credit Facility. As of September 30, 2018, subject to leverage and borrowing base restrictions, we had approximately $34.0 million of remaining commitments and $34.0 million of availability on the Credit Facility.

On July 20, 2018, the 2010 Issuer entered into a credit facility, or, as amended, the MS Credit Facility, with Morgan Stanley Bank, N.A., as lender, Morgan Stanley Senior Secured Funding, Inc., as administrative agent, and U.S. Bank National Association, as collateral agent for the administrative agent and lenders. As of September 30, 2018, the MS Credit Facility allowed the 2010 Issuer to borrow up to $300.0 million at any one time outstanding, subject to leverage and borrowing base restrictions. As of September 30, 2018, we had $234.7 million outstanding under the MS Credit Facility. As of September 30, 2018, subject to leverage and borrowing base restrictions, we had approximately $65.3 million, of remaining commitments and $6.7 million of availability on the MS Credit Facility. On November 1, 2018 we entered into an amendment to the documents governing the MS Credit Facility, which increased the borrowing capacity from $300.0 million to $450.0 million. On November 16, 2018, in connection with and as part of the private placement of the notes issued in the 2018 Debt Securitization, a portion of the proceeds, net of expenses, were used to repay all amounts outstanding under the MS Credit Facility, following which the agreements governing the MS Credit Facility were terminated.

On June 22, 2016, we entered into an unsecured revolving credit facility with GC Advisors, or the Adviser Revolver, which permitted us to borrow up to $20.0 million at any one time outstanding. On June 21, 2019, we entered into an amendment to the Adviser Revolver to, among other things, (a) extend the maturity date from June 22, 2019 to June 21, 2022 and (b) increase the borrowing capacity from $20.0 million to $40.0 million. We entered into the Adviser Revolver in order to have the ability to borrow funds on a short-term basis and have in the past repaid, and generally intend in the future to repay, borrowings under the Adviser Revolver within the same quarter in which they are drawn. As of June 30, 2019 and September 30, 2018, we had no amounts outstanding on the Adviser Revolver.

On July 16, 2010, we completed the 2010 Debt Securitization, which was subsequently increased to $350.0 million. On July 20, 2018, the 2010 Notes were redeemed and, following such redemption, the agreements governing the 2010 Debt Securitization were terminated.

On June 5, 2014, we completed the 2014 Debt Securitization in which the 2014 Issuer issued an aggregate of $402.6 million of notes, or the 2014 Notes, including, prior to their redemption on March 23, 2018, $191.0 million of Class A-1 2014 Notes, which bore interest at a rate of three-month LIBOR plus 1.75%, $20.0 million of Class A-2 2014 Notes, which bore interest at a rate of three-

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month LIBOR plus 1.95%, $35.0 million of Class B 2014 Notes, which bore interest at a rate of three-month LIBOR plus 2.50%, $37.5 million of Class C 2014 Notes, which bore interest at a rate of three-month LIBOR plus 3.50%, and $119.1 million of LLC equity interests in the 2014 Issuer that do not bear interest. We retained all of the Class C 2014 Notes and LLC equity interests in the 2014 Issuer totaling $37.5 million and $119.1 million, respectively. On March 23, 2018, we amended the 2014 Debt Securitization to, among other things, (a) refinance the issued Class A-1 notes issued by the 2014 Issuer by redeeming in full the $191.0 million of Class A-1 2014 Notes and issuing new Class A-1-R 2014 Notes in an aggregate principal amount of $191.0 million that bear interest at a rate of three-month LIBOR plus 0.95%, which is a decrease from the rate of three-month LIBOR plus 1.75% of the previously outstanding Class A-1 2014 Notes, (b) refinance the Class A-2 2014 Notes by redeeming in full the $20.0 million of Class A-2 2014 Notes and issuing new Class A-2-R 2014 Notes in an aggregate principal amount of $20.0 million that bear interest at a rate of three-month LIBOR plus 0.95%, which is a decrease from the rate of three-month LIBOR plus 1.95% of the previously outstanding Class A-2 2014 Notes, (c) refinance the Class B 2014 Notes by redeeming in full the $35.0 million of Class B 2014 Notes and issuing new Class B-R 2014 Notes in an aggregate principal amount of $35.0 million that bear interest at a rate of three-month LIBOR plus 1.40%, which is a decrease from the rate of three-month LIBOR plus 2.50% of the previously outstanding Class B 2014 Notes, (d) refinance the Class C 2014 Notes by redeeming in full the $37.5 million of Class C 2014 Notes and issuing new Class C-R 2014 Notes in an aggregate principal amount of $37.5 million that bear interest at a rate of three-month LIBOR plus 1.55%, which is a decrease from the rate of three-month LIBOR plus 3.50% of the previously outstanding Class C 2014 Notes. The Class C-R 2014 Notes were retained by us, and we remain the sole owner of the equity of the 2014 Issuer.

The Class A-1-R, Class A-2-R and Class B-R 2014 Notes are included in the June 30, 2019 Consolidated Statements of Financial Condition as our debt and the Class C-R 2014 Notes and LLC equity interests in the 2014 Issuer were eliminated in consolidation. As of June 30, 2019, we had outstanding debt under the 2014 Debt Securitization of $154.7 million. The Class A-1-R, Class A-2-R and Class B-R 2014 Notes are included in the September 30, 2018 Consolidated Statements of Financial Condition as our debt and the Class C-R 2014 Notes and LLC equity interests in the 2014 Issuer were eliminated in consolidation. As of September 30, 2018, we had outstanding debt under the 2014 Debt Securitization of $197.5 million.

On November 16, 2018, we completed the 2018 Debt Securitization in which the 2018 Issuer issued an aggregate of $602.4 million of notes, or the 2018 Notes, including $327.0 million of AAA/AAA Class A 2018 Notes, which bear interest at the three-month LIBOR plus 1.48%; $61.2 million of AA Class B 2018 Notes, which bear interest at the three-month LIBOR plus 2.10%; $20.0 million of A Class C-1 2018 Notes, which bear interest at the three-month LIBOR plus 2.80%; $38.8 million of A Class C-2 2018 Notes, which bear interest at the three-month LIBOR plus 2.65%; $42.0 million of BBB- Class D 2018 Notes, which bear interest at the three-month LIBOR plus 2.95%; and $113.4 million of Subordinated 2018 Notes which do not bear interest. We indirectly retained all of the Class C-2, Class D and Subordinated 2018 Notes.

The Class A, Class B and Class C-1 2018 Notes are included in the June 30, 2019 Consolidated Statements of Financial Condition as our debt and the Class C-2, Class D and Subordinated 2018 Notes were eliminated in consolidation. As of June 30, 2019, we had outstanding debt under the 2018 Debt Securitization of $408.2 million.

Under present SBIC regulations, the maximum amount of SBA-guaranteed debentures that may be issued by multiple licensees under common management is $350.0 million and the maximum amount that a single SBIC licensee may issue is $175.0 million. As of June 30, 2019, GC SBIC IV, L.P., or SBIC IV, GC SBIC V, L.P., or SBIC V, and GC SBIC VI, L.P., or SBIC VI, had $115.0 million, $162.5 million, and $22.0 million, respectively, of outstanding SBA-guaranteed debentures that mature between September 2021 and March 2029. As of September 30, 2018, SBIC IV, SBIC V and SBIC VI, had $115.0 million, $150.0 million and $12.5 million, respectively, of outstanding SBA-guaranteed debentures that mature between September 2021 and March 2028. The reinvestment period for SBIC IV expired on September 30, 2018. The original amount of debentures committed to SBIC IV by the SBA was $150.0 million. In March 2018 and September 2017, SBIC IV repaid $10.0 million and $25.0 million, respectively, of the aggregate principal amount of the SBA-guaranteed debentures outstanding at the time and $10.0 million and $25.0 million, respectively, of debenture commitments were terminated. As of June 30, 2019, SBIC V and SBIC VI had $12.5 million and $28.0 million of undrawn debenture commitments, respectively, none of which was available to be drawn, subject to SBA regulatory requirements. As of September 30, 2018, SBIC V and SBIC VI had $0 and $37.5 million of undrawn debenture commitments, respectively, of which $0 and $9.5 million, respectively, was available to be drawn, subject to SBA regulatory requirements.

As of June 30, 2019, in accordance with the 1940 Act, with certain limited exceptions, we were allowed to borrow amounts such that our asset coverage, as defined in the 1940 Act, is at least 150% after such borrowing. Prior to February 6, 2019, in accordance with the 1940 Act, with certain limited exceptions, we were allowed to borrow amounts such that our asset coverage, as defined in the 1940 Act, was at least 200% after such borrowing. On February 5, 2019, our stockholders voted to approve the application of the reduced asset coverage requirements to 150% in accordance with Section 61(a)(2) of the 1940 Act, which was amended by the Small Business Credit Availability Act enacted into law in March 2018, and the reduced asset coverage requirements approved by our stockholders became effective as of February 6, 2019.We currently intend to continue to target a GAAP debt-to-equity ratio of about 1.0x.

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On September 13, 2011, we received exemptive relief from the SEC allowing us to modify the asset coverage requirement to exclude the SBA debentures from our asset coverage calculation. As such, our ratio of total consolidated assets to outstanding indebtedness may be less than 150% This provides us with increased investment flexibility but also increases our risks related to leverage. As of June 30, 2019, our asset coverage for borrowed amounts was 227.84% (excluding the SBA debentures).

As of June 30, 2019 and September 30, 2018, we had outstanding commitments to fund investments, excluding our investments in SLF, totaling $49.0 million and $57.7 million, respectively. These amounts may or may not be funded to the borrowing party now or in the future. The unfunded commitments relate to loans with various maturity dates, but the entire amount was eligible for funding to the borrowers, subject to the terms of each loan’s respective credit agreement. As of June 30, 2019, we believe that we had sufficient assets and liquidity to adequately cover future obligations under our unfunded commitments based on historical rates of drawings upon unfunded commitments, cash and restricted cash balances that we maintain, availability under our Credit Facility and Adviser Revolver and ongoing principal repayments on debt investments. In addition, we generally hold some syndicated loans in larger portfolio companies that are saleable over a relatively short period to generate cash.

Due to the interplay of the 1940 Act restrictions on principal and joint transactions and the U.S. risk retention rules adopted pursuant to Section 941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or Dodd-Frank, as a business development company, we sought and received no action relief from the SEC to ensure we could engage in CLO financings which assets are transferred through GC Advisors.

Although we expect to fund the growth of our investment portfolio through the net proceeds from future securities offerings and through our DRIP as well as future borrowings, to the extent permitted by the 1940 Act, we cannot assure you that our efforts to raise capital will be successful. In addition, we may, from time to time, amend or refinance our leverage facilities and securitization financings, to the extent permitted by applicable law. In addition to capital not being available, it also may not be available on favorable terms. To the extent we are not able to raise capital on what we believe are favorable terms, we will focus on optimizing returns by investing capital generated from repayments into new investments we believe are attractive from a risk/reward perspective. Furthermore, to the extent we are not able to raise capital and are at or near our targeted leverage ratios, we may receive smaller allocations, if any, on new investment opportunities under GC Advisors’ allocation policy and have, in the past, received such smaller allocations under similar circumstances.

Portfolio Composition, Investment Activity and Yield

As of June 30, 2019 and September 30, 2018, we had investments in 225 and 199 portfolio companies, respectively, with a total fair value of $1,851.1 million and $1,711.8 million, respectively, and had investments in SLF with a total fair value of $71.7 million and $71.1 million, respectively.

The following table shows the asset mix of our new investment commitments for the three and nine months ended June 30, 2019 and 2018:



	For the three months ended June 30,								For the nine months ended June 30,
	2019				2018				2019				2018
	(In thousands)		Percentage of Commitments		(In thousands)		Percentage of Commitments		(In thousands)		Percentage of Commitments		(In thousands)		Percentage of Commitments
Senior secured	$	22,686	14.4	%	$	23,414	11.8	%	$	73,604	15.5	%	$	89,295	18.6	%
One stop	131,944		84.0		170,496		85.9		393,130		82.5		379,586		79.1
Second lien	1,513		1.0		—		—		1,513		0.3		—		—
Subordinated debt	—		—		184		0.1		23		0.0	*	184		0.0	*
LLC equity interests in SLF⁽¹⁾	—		—		2,625		1.3		1,750		0.4		6,737		1.4
Equity	908		0.6		1,754		0.9		6,213		1.3		4,387		0.9
Total new investment commitments	$	157,051	100.0	%	$	198,473	100.0	%	$	476,233	100.0	%	$	480,189	100.0	%



*	Represents an amount less than 0.1%.

⁽¹⁾ SLF's proceeds from LLC equity interests were utilized by SLF to invest in senior secured loans. As of June 30, 2019, SLF had investments in senior secured loans to 28 different borrowers.

For the three and nine months ended June 30, 2019, we had approximately $177.5 million and $315.9 million, respectively, in proceeds from principal payments and return of capital distributions of portfolio companies. For the three and nine months ended June

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30, 2019, we had sales of investments in six and twelve portfolio companies, respectively, aggregating approximately $1.9 million and $7.5 million, respectively, in net proceeds.

For the three and nine months ended June 30, 2018, we had approximately $138.0 million and $333.5 million, respectively, in proceeds from principal payments and return of capital distributions of portfolio companies. For the three and nine months ended June 30, 2018, we had sales of investments in seven and seventeen portfolio companies, respectively, aggregating approximately $19.0 million and $31.3 million, respectively, in net proceeds.

The following table shows the principal, amortized cost and fair value of our portfolio of investments by asset class:



	As of June 30, 2019⁽¹⁾						As of September 30, 2018⁽¹⁾
	Principal		Amortized Cost		Fair Value		Principal		Amortized Cost		Fair Value
	(In thousands)						(In thousands)
Senior secured:
Performing	$	265,247	$	262,850	$	264,121	$	230,230	$	228,028	$	229,886
Non-accrual⁽²⁾	3,170		3,155		794		2,834		2,818		1,283
One stop:
Performing	1,540,437		1,522,059		1,523,370		1,435,004		1,417,730		1,425,854
Non-accrual⁽²⁾	8,683		8,625		6,300		8,976		8,910		4,342
Second lien:
Performing	10,965		10,856		10,928		9,435		9,338		9,435
Non-accrual⁽²⁾	—		—		—		—		—		—
Subordinated debt:
Performing	171		167		171		251		251		251
Non-accrual⁽²⁾	—		—		—		—		—		—
LLC equity interests in SLF⁽³⁾	N/A		74,882		71,742		N/A		75,407		71,084
Equity	N/A		37,247		45,395		N/A		38,170		40,706
Total	$	1,828,673	$	1,919,841	$	1,922,821	$	1,686,730	$	1,780,652	$	1,782,841


⁽¹⁾	37 and 27 of our loans included a feature permitting a portion of the interest due on such loan to be PIK interest as of June 30, 2019 and September 30, 2018, respectively.


⁽²⁾	We refer to a loan as non-accrual when we cease recognizing interest income on the loan because we have stopped pursuing repayment of the loan or, in certain circumstances, it is past due 90 days or more on principal and interest or our management has reasonable doubt that principal or interest will be collected. See “— Critical Accounting Policies — Revenue Recognition.”


⁽³⁾	Proceeds from the LLC equity interests invested in SLF were utilized by SLF to invest in senior secured loans.

As of June 30, 2019, we had four debt investments on non-accrual status and non-accrual investments as a percentage of total debt investments at cost and fair value were 0.7% and 0.4%, respectively. As of September 30, 2018, we had three debt investments on non-accrual status and non-accrual investments as a percentage of total investments at cost and fair value were 0.7% and 0.3%, respectively. As of June 30, 2019 and September 30, 2018, the fair value of our debt investments as a percentage of the outstanding principal value was 98.7% and 99.1%, respectively.

The following table shows the weighted average rate, spread over LIBOR of floating rate and fees of investments originated and the weighted average rate of sales and payoffs of portfolio companies during the three and nine months ended June 30, 2019 and 2018:



	For the three months ended June 30,		For the nine months ended June 30,
	2019	2018	2019	2018
Weighted average rate of new investment fundings	8.1%	7.8%	8.1%	7.9%
Weighted average spread over LIBOR of new floating rate investment fundings	5.7%	5.7%	5.9%	6.0%
Weighted average rate of sales and payoffs of portfolio investments⁽¹⁾	8.8%	8.2%	8.7%	7.9%
Weighted average annualized income yield⁽²⁾	8.6%	8.5%	8.7%	8.2%


⁽¹⁾	Excludes exits on investments on non-accrual status.

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⁽²⁾	Represents income from interest and fees, excluding amortization of capitalized fees and discounts, divided by the average fair value of earning debt investments, and does not represent a return to any investor in us.

As of June 30, 2019, 96.9% and 96.9% of our debt portfolio at fair value and at amortized cost, respectively, had interest rate floors that limit the minimum applicable interest rates on such loans. As of September 30, 2018, 98.6% and 98.6% of our debt portfolio at fair value and at amortized cost, respectively, had interest rate floors that limit the minimum applicable interest rates on such loans.

As of June 30, 2019 and September 30, 2018, the portfolio median earnings before interest, taxes, depreciation and amortization, or EBITDA, for our portfolio companies (excluding SLF) was $27.1 million and $26.2 million, respectively. The portfolio median EBITDA is based on the most recently reported trailing twelve-month EBITDA received from the portfolio company.

As part of the monitoring process, GC Advisors regularly assesses the risk profile of each of our investments and rates each of them based on an internal system developed by Golub Capital and its affiliates. This system is not generally accepted in our industry or used by our competitors. It is based on the following categories, which we refer to as GC Advisors’ internal performance ratings:




Internal Performance Ratings
Rating		Definition
5		Involves the least amount of risk in our portfolio. The borrower is performing above expectations, and the trends and risk factors are generally favorable.
4		Involves an acceptable level of risk that is similar to the risk at the time of origination. The borrower is generally performing as expected, and the risk factors are neutral to favorable.
3		Involves a borrower performing below expectations and indicates that the loan’s risk has increased somewhat since origination. The borrower may be out of compliance with debt covenants; however, loan payments are generally not past due.
2		Involves a borrower performing materially below expectations and indicates that the loan’s risk has increased materially since origination. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due (but generally not more than 180 days past due).
1		Involves a borrower performing substantially below expectations and indicates that the loan’s risk has substantially increased since origination. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Loans rated 1 are not anticipated to be repaid in full and we will reduce the fair market value of the loan to the amount we anticipate will be recovered.

Our internal performance ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments.

For any investment rated 1, 2 or 3, GC Advisors will increase its monitoring intensity and prepare regular updates for the investment committee, summarizing current operating results and material impending events and suggesting recommended actions.

GC Advisors monitors and, when appropriate, changes the internal performance ratings assigned to each investment in our portfolio. In connection with our valuation process, GC Advisors and our board of directors review these internal performance ratings on a quarterly basis.

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The following table shows the distribution of our investments on the 1 to 5 internal performance rating scale at fair value as of June 30, 2019 and September 30, 2018:



	As of June 30, 2019				As of September 30, 2018
Internal Performance Rating	Investments at Fair Value (In thousands)		Percentage of Total Investments		Investments at Fair Value (In thousands)		Percentage of Total Investments
5	$	71,110	3.7	%	$	113,873	6.4	%
4	1,653,286		86.0		1,455,754		81.6
3	178,225		9.3		195,414		11.0
2	20,189		1.0		17,250		1.0
1	11		0.0*		550		0.0	*
Total	$	1,922,821	100.0	%	$	1,782,841	100.0	%



*	Represents an amount less than 0.1%.

Senior Loan Fund LLC

We co-invest with RGA Reinsurance Company, or RGA, in senior secured loans through SLF, an unconsolidated Delaware LLC. SLF is capitalized as transactions are completed and all portfolio and investment decisions in respect to SLF must be approved by the SLF investment committee consisting of two representatives of each of us and RGA (with unanimous approval required from (i) one representative of each of us and RGA or (ii) both representatives of each of us and RGA). SLF may cease making new investments upon notification of either member but operations will continue until all investments have been sold or paid-off in the normal course of business.

As of June 30, 2019, SLF is capitalized by LLC equity interest subscriptions from its members. As of June 30, 2019 and September 30, 2018, we and RGA owned 87.5% and 12.5%, respectively, of the LLC equity interests. SLF’s profits and losses are allocated to us and RGA in accordance with our respective ownership interests.

As of June 30, 2019 and September 30, 2018, SLF had the following commitments from its members (in the aggregate):



	As of June 30, 2019				As of September 30, 2018
	Committed		Funded⁽¹⁾		Committed		Funded⁽¹⁾
	(In thousands)				(In thousands)
LLC equity commitments	$	200,000	$	85,580	$	200,000	$	86,180
Total	$	200,000	$	85,580	$	200,000	$	86,180


⁽¹⁾	Funded LLC equity commitments are presented net of return of capital distributions subject to recall.

As of June 30, 2019, the senior secured revolving credit facility, or, as amended, the SLF Credit Facility, that Senior Loan Fund II LLC, a wholly-owned subsidiary of SLF, or SLF II, entered into with Wells Fargo Securities, LLC, as administrative agent, and Wells Fargo Bank, N.A., as lender, allows SLF II to borrow up to $77.1 million subject to leverage and borrowing base restrictions. The reinvestment period of the SLF Credit Facility ended August 29, 2018, and after such date, the maximum commitment is equal to advances outstanding. The stated maturity date is August 30, 2022. As of June 30, 2019 and September 30, 2018, SLF II had outstanding debt under the SLF Credit Facility of $77.1 million and $104.6 million, respectively. As of June 30, 2019, the SLF Credit Facility bears interest at one-month LIBOR plus 2.05% per annum.

As of June 30, 2019 and September 30, 2018, SLF had total assets at fair value of $159.5 million and $186.3 million, respectively. As of June 30, 2019, SLF had seven portfolio company investments in three portfolio companies on non-accrual status with a fair value of $8.5 million. As of September 30, 2018, SLF had two portfolio company investments in one portfolio company on non-accrual status with a fair value of $3.9 million. The portfolio companies in SLF are in industries and geographies similar to those in which we may invest directly. Additionally, as of June 30, 2019 and September 30, 2018, SLF had commitments to fund various undrawn revolving credit and delayed draw loans to its portfolio companies totaling $4.5 million and $5.9 million, respectively.

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Below is a summary of SLF’s portfolio, followed by a listing of the individual investments in SLF’s portfolio as of June 30, 2019 and September 30, 2018:



	As of June 30, 2019			As of September 30, 2018
	(Dollars in thousands)
Senior secured loans⁽¹⁾	$	165,211		$	183,668
Weighted average current interest rate on senior secured loans⁽²⁾	7.6		%	7.5		%
Number of borrowers in SLF	28			32
Largest portfolio company investment⁽¹⁾	$	12,688		$	13,716
Total of five largest portfolio company investments⁽¹⁾	$	55,288		$	57,330


⁽¹⁾	At principal amount.


⁽²⁾	Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at principal amount.

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SLF Investment Portfolio as of June 30, 2019
Portfolio Company	Business Description	Security Type	Maturity Date	Current Interest Rate⁽¹⁾	Principal ($) / Shares⁽²⁾		Fair Value⁽³⁾
Polk Acquisition Corp.⁽⁴⁾	Automobile	Senior loan	06/2022	7.6%	$	4,477	$	4,388
Polk Acquisition Corp.	Automobile	Senior loan	06/2022	7.9	90		88
Polk Acquisition Corp.	Automobile	Senior loan	06/2022	7.6	52		51
Rubio's Restaurants, Inc ⁽⁴⁾	Beverage, Food and Tobacco	Senior loan	10/2019	7.6	4,902		4,804
Jensen Hughes, Inc.	Buildings and Real Estate	Senior loan	03/2024	6.6	2,282		2,282
Jensen Hughes, Inc.	Buildings and Real Estate	Senior loan	03/2024	6.6	119		119
Jensen Hughes, Inc.	Buildings and Real Estate	Senior loan	03/2024	6.6	63		63
Paradigm DKD Group, LLC⁽⁵⁾	Buildings and Real Estate	Senior loan	05/2020	10.5	1,951		781
Paradigm DKD Group, LLC⁽⁵⁾	Buildings and Real Estate	Senior loan	05/2020	10.5	596		238
Flexan, LLC	Chemicals, Plastics and Rubber	Senior loan	02/2020	8.1	5,920		5,920
Flexan, LLC	Chemicals, Plastics and Rubber	Senior loan	02/2020	8.1	1,644		1,644
Flexan, LLC⁽⁴⁾	Chemicals, Plastics and Rubber	Senior loan	02/2020	10.0	520		520
Pasternack Enterprises, Inc. and Fairview Microwave, Inc⁽⁴⁾	Diversified/Conglomerate Manufacturing	Senior loan	07/2025	6.3	5,278		5,278
DISA Holdings Acquisition Subsidiary Corp.⁽⁴⁾	Diversified/Conglomerate Service	Senior loan	06/2022	6.7	4,785		4,785
DISA Holdings Acquisition Subsidiary Corp.⁽⁴⁾	Diversified/Conglomerate Service	Senior loan	06/2022	6.9	248		248
III US Holdings, LLC	Diversified/Conglomerate Service	Senior loan	09/2022	8.3	4,488		4,488
Mediaocean LLC	Diversified/Conglomerate Service	Senior loan	08/2020	N/A⁽⁶⁾	—		—
Gamma Technologies, LLC⁽⁴⁾	Electronics	Senior loan	06/2024	7.7	10,109		10,109
SEI, Inc.⁽⁴⁾	Electronics	Senior loan	07/2023	7.2	12,611		12,611
SEI, Inc.	Electronics	Senior loan	07/2023	N/A⁽⁶⁾	—		—
Teasdale Quality Foods, Inc.	Grocery	Senior loan	10/2020	8.3	4,213		3,876
Teasdale Quality Foods, Inc.	Grocery	Senior loan	10/2020	8.3	3,303		3,038
Teasdale Quality Foods, Inc.	Grocery	Senior loan	10/2020	8.3	586		539
Teasdale Quality Foods, Inc.	Grocery	Senior loan	10/2020	8.3	438		403
Teasdale Quality Foods, Inc.	Grocery	Senior loan	10/2020	8.3	216		199
Advanced Pain Management Holdings, Inc.⁽⁵⁾	Healthcare, Education and Childcare	Senior loan	12/2019	7.3	6,172		3,086
Advanced Pain Management Holdings, Inc.⁽⁵⁾	Healthcare, Education and Childcare	Senior loan	12/2019	10.8	2,139		4
Advanced Pain Management Holdings, Inc.⁽⁵⁾	Healthcare, Education and Childcare	Senior loan	12/2019	7.3	422		211
Advanced Pain Management Holdings, Inc.⁽⁵⁾⁽⁷⁾	Healthcare, Education and Childcare	Senior loan	12/2019	7.3	193		(212		)
CLP Healthcare Services, Inc.	Healthcare, Education and Childcare	Senior loan	12/2020	7.7	8,437		8,437
CLP Healthcare Services, Inc.	Healthcare, Education and Childcare	Senior loan	12/2020	7.7	4,251		4,251
Joerns Healthcare, LLC⁽⁴⁾⁽⁵⁾	Healthcare, Education and Childcare	Senior loan	05/2020	8.5	8,002		4,401
Joerns Healthcare, LLC⁽⁴⁾	Healthcare, Education and Childcare	Senior loan	10/2019	8.4	743		743
Joerns Healthcare, LLC⁽⁴⁾	Healthcare, Education and Childcare	Senior loan	10/2019	8.4	743		743
Pyramid Healthcare, Inc.⁽⁴⁾	Healthcare, Education and Childcare	Senior loan	08/2020	8.8	10,073		10,073
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior loan	08/2020	8.9	147		147
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior loan	08/2020	9.0	99		99
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior loan	08/2020	N/A⁽⁶⁾	—		—
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior loan	12/2020	7.69% cash/1.00% PIK	4,341		3,907
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior loan	12/2020	8.7	70		62
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior loan	12/2020	8.7	64		57
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior loan	12/2020	8.7	45		40
Upstream Intermediate, LLC	Healthcare, Education and Childcare	Senior loan	01/2024	6.4	2,809		2,809

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SLF Investment Portfolio as of June 30, 2019 - (continued)
Portfolio Company	Business Description	Security Type	Maturity Date	Current Interest Rate⁽¹⁾	Principal ($) / Shares⁽²⁾		Fair Value⁽³⁾
WHCG Management, LLC ⁽⁴⁾	Healthcare, Education and Childcare	Senior loan	03/2023	7.3%	$	7,840	$	7,370
WIRB-Copernicus Group, Inc.⁽⁴⁾	Healthcare, Education and Childcare	Senior loan	08/2022	6.6	5,567		5,567
1A Smart Start LLC⁽⁴⁾	Home and Office Furnishings, Housewares, and Durable Consumer	Senior loan	02/2022	6.8	2,969		2,969
RSC Acquisition, Inc.⁽⁴⁾	Insurance	Senior loan	11/2022	6.6	3,795		3,795
RSC Acquisition, Inc.⁽⁴⁾	Insurance	Senior loan	11/2021	N/A⁽⁶⁾	—		—
Self Esteem Brands, LLC ⁽⁴⁾	Leisure, Amusement, Motion Pictures, Entertainment	Senior loan	02/2022	6.7	9,561		9,561
Self Esteem Brands, LLC ⁽⁴⁾	Leisure, Amusement, Motion Pictures, Entertainment	Senior loan	02/2022	N/A⁽⁶⁾	—		—
W3 Co.	Oil and Gas	Senior loan	03/2022	8.4	1,244		1,235
Captain D's, LLC⁽⁴⁾	Personal, Food and Miscellaneous Services	Senior loan	12/2023	6.9	2,440		2,391
Captain D's, LLC⁽⁴⁾	Personal, Food and Miscellaneous Services	Senior loan	12/2023	7.4	12		11
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior loan	10/2021	7.8	2,398		2,398
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior loan	10/2021	7.8	1,206		1,206
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior loan	10/2021	7.8	58		58
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior loan	10/2021	7.8	40		40
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior loan	10/2021	N/A⁽⁶⁾	—		—
Brandmuscle, Inc.	Printing and Publishing	Senior loan	12/2021	7.1	4,418		4,414
Brandmuscle, Inc.	Printing and Publishing	Senior loan	12/2021	N/A⁽⁶⁾	—		—
Boot Barn, Inc.⁽⁴⁾	Retail Stores	Senior loan	06/2023	6.8	6,022		6,022
Total senior loan investments					$	165,211	$	152,367

W3 Co. ⁽⁸⁾⁽⁹⁾	Oil and Gas	LLC units	N/A	N/A	3		$	1,219
W3 Co. ⁽⁸⁾⁽⁹⁾	Oil and Gas	Preferred stock	N/A	N/A	—		200
Total equity investments							$	1,419

Total investments					$	165,211	$	153,786


⁽¹⁾	Represents the weighted average annual current interest rate as of June 30, 2019. All interest rates are payable in cash, except where PIK is shown.


⁽²⁾	The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.


⁽³⁾	Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in our board of directors' valuation process described elsewhere herein.


⁽⁴⁾	We also hold a portion of the first lien senior secured loan in this portfolio company.


⁽⁵⁾	Loan was on non-accrual status as of June 30, 2019. As such, no interest is being earned on this investment.


⁽⁶⁾	The entire commitment was unfunded as of June 30, 2019. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.


⁽⁷⁾	The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par.


⁽⁸⁾	Equity investment received as a result of the portfolio company's debt restructuring.


⁽⁹⁾	Non-income producing.

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SLF Investment Portfolio as of September 30, 2018
Portfolio Company	Business Description	Security Type	Maturity Date	Current Interest Rate⁽¹⁾		Principal ($) / Shares ⁽²⁾		Fair Value⁽³⁾
1A Smart Start LLC	Home and Office Furnishings, Housewares, and Durable Consumer	Senior Loan	02/2022	7.0	%	$	2,073	$	2,084
1A Smart Start LLC⁽⁴⁾	Home and Office Furnishings, Housewares, and Durable Consumer	Senior Loan	02/2022	6.7		922		924
Advanced Pain Management Holdings, Inc.⁽⁵⁾	Healthcare, Education and Childcare	Senior Loan	11/2018	7.2		6,561		3,609
Advanced Pain Management Holdings, Inc.⁽⁵⁾	Healthcare, Education and Childcare	Senior Loan	11/2018	7.2		449		247
Boot Barn, Inc.	Retail Stores	Senior Loan	06/2021	6.9		9,533		9,533
Brandmuscle, Inc.	Printing and Publishing	Senior Loan	12/2021	7.1		4,678		4,674
Captain D's, LLC⁽⁴⁾	Personal, Food and Miscellaneous Services	Senior Loan	12/2023	7.9		13		13
Captain D's, LLC⁽⁴⁾	Personal, Food and Miscellaneous Services	Senior Loan	12/2023	6.7		2,499		2,499
CLP Healthcare Services, Inc.	Healthcare, Education and Childcare	Senior Loan	12/2020	7.9		8,502		8,332
CLP Healthcare Services, Inc.	Healthcare, Education and Childcare	Senior Loan	12/2020	7.9		4,284		4,198
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior Loan	10/2021	7.9		2,417		2,417
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior Loan	10/2021	7.9		1,215		1,215
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior Loan	10/2021	7.9		40		40
Community Veterinary Partners, LLC	Personal, Food and Miscellaneous Services	Senior Loan	10/2021	7.9		58		58
DISA Holdings Acquisition Subsidiary Corp.⁽⁴⁾	Diversified/Conglomerate Service	Senior Loan	06/2022	6.1		71		71
DISA Holdings Acquisition Subsidiary Corp.⁽⁴⁾	Diversified/Conglomerate Service	Senior Loan	06/2022	6.1		4,821		4,821
Encore GC Acquisition, LLC	Healthcare, Education and Childcare	Senior Loan	01/2020	7.5		4,540		4,540
Flexan, LLC⁽⁴⁾	Chemicals, Plastics and Rubber	Senior Loan	02/2020	9.8		304		304
Flexan, LLC	Chemicals, Plastics and Rubber	Senior Loan	02/2020	8.1		5,967		5,967
Flexan, LLC	Chemicals, Plastics and Rubber	Senior Loan	02/2020	8.1		1,657		1,657
Gamma Technologies, LLC⁽⁴⁾	Electronics	Senior Loan	06/2024	7.7		10,186		10,186
III US Holdings, LLC	Diversified/Conglomerate Service	Senior Loan	09/2022	9.0		4,927		4,927
Jensen Hughes, Inc.	Buildings and Real Estate	Senior Loan	03/2024	6.7		2,293		2,293
Jensen Hughes, Inc.	Buildings and Real Estate	Senior Loan	03/2024	6.7		119		119
Jensen Hughes, Inc.	Buildings and Real Estate	Senior Loan	03/2024	6.7		64		64
Joerns Healthcare, LLC⁽⁴⁾	Healthcare, Education and Childcare	Senior Loan	05/2020	8.3		8,745		8,133
Paradigm DKD Group, LLC	Buildings and Real Estate	Senior Loan	05/2020	8.5		702		524
Paradigm DKD Group, LLC	Buildings and Real Estate	Senior Loan	05/2020	8.5		1,957		1,369
Pasternack Enterprises, Inc. and Fairview Microwave, Inc⁽⁴⁾	Diversified/Conglomerate Manufacturing	Senior Loan	07/2025	6.2		5,318		5,291
Payless ShoeSource, Inc.	Retail Stores	Senior Loan	08/2022	11.3		762		528
Polk Acquisition Corp.	Automobile	Senior Loan	06/2022	7.5		93		93
Polk Acquisition Corp.	Automobile	Senior Loan	06/2022	7.2		4,513		4,513
Polk Acquisition Corp.	Automobile	Senior Loan	06/2022	7.2		53		53
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior Loan	08/2019	8.8		411		411
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior Loan	08/2019	8.8		10,152		10,152
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior Loan	08/2019	8.8		45		45
Pyramid Healthcare, Inc.	Healthcare, Education and Childcare	Senior Loan	08/2019	8.8		148		148
RSC Acquisition, Inc.⁽⁴⁾	Insurance	Senior Loan	11/2021	6.8		17		17
RSC Acquisition, Inc.⁽⁴⁾	Insurance	Senior Loan	11/2022	6.7		3,824		3,815
Rubio's Restaurants, Inc.⁽⁴⁾	Beverage, Food and Tobacco	Senior Loan	10/2019	7.6		4,941		4,941
Rug Doctor LLC	Personal and Non Durable Consumer Products (Mfg. Only)	Senior Loan	04/2019	7.6		991		991
Rug Doctor LLC	Personal and Non Durable Consumer Products (Mfg. Only)	Senior Loan	04/2019	7.6		5,061		5,061
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior Loan	12/2020	8.4		70		64

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SLF Investment Portfolio as of September 30, 2018 - (continued)
Portfolio Company	Business Description	Security Type	Maturity Date	Current Interest Rate⁽¹⁾		Principal ($) / Shares ⁽²⁾		Fair Value⁽³⁾
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior Loan	12/2020	8.4	%	4,345		3,997
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior Loan	12/2020	8.4		45		42
Sage Dental Management, LLC	Healthcare, Education and Childcare	Senior Loan	12/2020	8.4		64		59
Saldon Holdings, Inc. ⁽⁴⁾	Diversified/Conglomerate Service	Senior Loan	09/2022	6.4		2,354		2,342
SEI, Inc.⁽⁴⁾	Electronics	Senior Loan	07/2023	7.5		13,716		13,716
Self Esteem Brands, LLC⁽⁴⁾	Leisure, Amusement, Motion Pictures, Entertainment	Senior Loan	02/2020	7.0		10,142		10,142
Teasdale Quality Foods, Inc.	Grocery	Senior Loan	10/2020	6.9		4,507		4,416
Teasdale Quality Foods, Inc.	Grocery	Senior Loan	10/2020	6.9		486		476
Teasdale Quality Foods, Inc.	Grocery	Senior Loan	10/2020	7.1		650		637
Teasdale Quality Foods, Inc.	Grocery	Senior Loan	10/2020	7.1		239		235
Teasdale Quality Foods, Inc.	Grocery	Senior Loan	10/2020	6.9		3,532		3,460
Upstream Intermediate, LLC	Healthcare, Education and Childcare	Senior Loan	01/2024	6.6		2,830		2,830
W3 Co.	Oil and Gas	Senior Loan	03/2022	8.2		1,253		1,251
WHCG Management, LLC⁽⁴⁾	Healthcare, Education and Childcare	Senior Loan	03/2023	7.4		7,900		7,900
WIRB-Copernicus Group, Inc.⁽⁴⁾	Healthcare, Education and Childcare	Senior Loan	08/2022	6.5		5,609		5,609
Total senior loan investments						$	183,668	$	178,053

Payless ShoeSource, Inc. ⁽⁶⁾⁽⁷⁾	Retail Stores	LLC interest	N/A	N/A		35		$	54
W3 Co. ⁽⁶⁾⁽⁷⁾	Oil and Gas	LLC units	N/A	N/A		3		1,073
Total equity investments								$	1,127

Total investments						$	183,668	$	179,180


⁽¹⁾	Represents the weighted average annual current interest rate as of September 30, 2018. All interest rates are payable in cash.


⁽²⁾	The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.


⁽³⁾	Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in our board of directors' valuation process described elsewhere herein.


⁽⁴⁾	Loan was on non-accrual status as of September 30, 2018. As such, no interest is being earned on this investment.


⁽⁵⁾	Equity investment received as a result of the portfolio company's debt restructuring.


⁽⁶⁾	Non-income producing.

As of June 30, 2019, we have committed to fund $175.0 million of LLC equity interests to SLF. As of June 30, 2019 and September 30, 2018, $74.9 million and $75.4 million, respectively, of our LLC equity interest commitment to SLF had been called and contributed, net of return of capital distributions subject to recall. For the three and nine months ended June 30, 2019, we did not receive dividend income from the SLF LLC equity interests. For the three and nine months ended June 30, 2018, we received $2.1 million and $5.9 million, respectively, in dividend income from the SLF LLC equity interests.

For the three and nine months ended June 30, 2019, we earned an annualized total return on our weighted average capital invested in SLF of 0.0% and 2.3%, respectively. For the three and nine months ended June 30, 2018, we earned an annualized total return on our weighted average capital invested in SLF of 6.2% and 7.6%, respectively. The annualized total return on weighted average capital invested is calculated by dividing total income earned on our investments in SLF by the combined daily average of our investments in (1) the NAV of the SLF LLC equity interests, and (2) the principal of the SLF subordinated notes, if any.

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Below is certain summarized financial information for SLF as of June 30, 2019 and September 30, 2018, and for the three and nine months ended June 30, 2019 and 2018:



	As of June 30, 2019		As of September 30, 2018
	(In thousands)
Selected Balance Sheet Information, at fair value
Investments, at fair value	$	153,786	$	179,180
Cash and other assets	5,734		7,146
Total assets	$	159,520	$	186,326
Senior credit facility	$	77,138	$	104,622
Unamortized debt issuance costs	—		(18		)
Other liabilities	391		484
Total liabilities	77,529		105,088
Members’ equity	81,991		81,238
Total liabilities and members' equity	$	159,520	$	186,326



	Three months ended June 30,						Nine months ended June 30,
	2019			2018			2019			2018
	(In thousands)						(In thousands)
Selected Statement of Operations Information:
Interest income	$	3,217		$	4,692		$	10,392		$	14,444
Fee income	—			—			9			25
Total investment income	3,217			4,692			10,401			14,469
Interest and other debt financing expenses	980			1,662			3,300			5,506
Administrative service fee	65			119			209			340
Other expenses	23			30			72			87
Total expenses	1,068			1,811			3,581			5,933
Net investment income	2,149			2,881			6,820			8,536
Net realized gains (losses) on investments	—			—			(1,315		)	—
Net change in unrealized appreciation (depreciation) on investments	(2,149		)	(1,196		)	(4,153		)	(2,414		)
Net increase (decrease) in members' equity	$	—		$	1,685		$	1,352		$	6,122

Contractual Obligations and Off-Balance Sheet Arrangements

A summary of our significant contractual payment obligations as of June 30, 2019 is as follows:



	Payments Due by Period (In millions)
	Total		Less Than 1 Year		1 – 3 Years		3 – 5 Years		More Than 5 Years
2014 Debt Securitization	$	154.7	$	—	$	—	$	—	$	154.7
2018 Debt Securitization	408.2		—		—		—		408.2
SBA debentures	299.5		80.0		87.4		132.2		—
MS Credit Facility II	184.7		—		—		184.7		—
Other short-term borrowings	3.5		3.5		—		—		—
Unfunded commitments⁽¹⁾	49.0		49.0		—		—		—
Total contractual obligations	$	1,099.7	$	132.5	$	87.4	$	316.9	$	562.9


⁽¹⁾	Unfunded commitments represent unfunded commitments to fund investments, excluding our investments in SLF, as of June 30, 2019. These amounts may or may not be funded to the borrowing party now or in the future. The unfunded commitments relate to loans with various maturity dates, but we are showing this amount

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in the less than one year category as this entire amount was eligible for funding to the borrowers as of June 30, 2019, subject to the terms of each loan’s respective credit agreement.

We may become a party to financial instruments with off-balance sheet risk in the normal course of our business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of June 30, 2019 and September 30, 2018, we had outstanding commitments to fund investments, excluding our investments in SLF, totaling $49.0 million and $57.7 million, respectively. We have commitments of up to $100.1 million and $99.6 million to SLF as of June 30, 2019 and September 30, 2018, respectively, that may be contributed primarily for the purpose of funding new investments approved by the SLF investment committee.

We have certain contracts under which we have material future commitments. We have entered into the Investment Advisory Agreement with GC Advisors in accordance with the 1940 Act. Under the Investment Advisory Agreement, GC Advisors provides us with investment advisory and management services.

Under the Administration Agreement, the Administrator furnishes us with office facilities and equipment, provides us with clerical, bookkeeping and record keeping services at such facilities and provides us with other administrative services necessary to conduct our day-to-day operations. The Administrator also provides on our behalf managerial assistance to those portfolio companies to which we are required to offer to provide such assistance.

If any of the contractual obligations discussed above are terminated, our costs under any new agreements that we enter into may increase. In addition, we would likely incur significant time and expense in locating alternative parties to provide the services we receive under our Investment Advisory Agreement and our Administration Agreement. Any new investment advisory agreement would also be subject to approval by our stockholders.

Distributions

We intend to make quarterly distributions to our stockholders as determined by our board of directors. For additional details on distributions, see “Income taxes” in Note 2 to our consolidated financial statements.

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of our distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage requirements applicable to us as a business development company under the 1940 Act. If we do not distribute a certain percentage of our income annually, we will suffer adverse U.S. federal income tax consequences, including the possible loss of our ability to be subject to tax as a RIC. We cannot assure stockholders that they will receive any distributions.

Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified within capital accounts in the financial statements to reflect their tax character. For example, permanent differences in classification may result from the treatment of distributions paid from short-term gains as ordinary income dividends for tax purposes. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.

To the extent our taxable earnings fall below the total amount of our distributions for any tax year, a portion of those distributions may be deemed a return of capital to our stockholders for U.S. federal income tax purposes. Thus, the source of a distribution to our stockholders may be the original capital invested by the stockholder rather than our income or gains. Stockholders should read any written disclosure accompanying a distribution payment carefully and should not assume that the source of any distribution is our ordinary income or gains.

We have adopted an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a distribution, our stockholders’ cash distributions will be automatically reinvested in additional shares of our common stock unless a stockholder specifically “opts out” of our dividend reinvestment plan. If a stockholder opts out, that stockholder will receive cash distributions. Although distributions paid in the form of additional shares of our common stock will generally be subject to U.S. federal, state and local taxes in the same manner as cash distributions, stockholders participating in our dividend reinvestment plan will not receive any corresponding cash distributions with which to pay any such applicable taxes.

Related Party Transactions

We have entered into a number of business relationships with affiliated or related parties, including the following:

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•	We entered into the Investment Advisory Agreement with GC Advisors. Mr. Lawrence Golub, our chairman, is a manager of GC Advisors, and Mr. David Golub, our chief executive officer, is a manager of GC Advisors, and each of Messrs. Lawrence Golub and David Golub owns an indirect pecuniary interest in GC Advisors.


•	Golub Capital LLC provides, and other affiliates of Golub Capital have historically provided, us with the office facilities and administrative services necessary to conduct day-to-day operations pursuant to our Administration Agreement.


•	We have entered into a license agreement with Golub Capital LLC, pursuant to which Golub Capital LLC has granted us a non-exclusive, royalty-free license to use the name “Golub Capital.”

•

Under the Staffing Agreement, Golub Capital LLC has agreed to provide GC Advisors with the resources necessary to fulfill its obligations under the Investment Advisory Agreement. The Staffing Agreement provides that Golub Capital LLC will make available to GC Advisors experienced investment professionals and provide access to the senior investment personnel of Golub Capital LLC for purposes of evaluating, negotiating, structuring, closing and monitoring our investments. The Staffing Agreement also includes a commitment that the members of GC Advisors’ investment committee will serve in such capacity. Services under the Staffing Agreement are provided on a direct cost reimbursement basis. We are not a party to the Staffing Agreement.

•

GC Advisors serves as collateral manager to the 2014 Issuer and the 2018 Issuer under the 2014 Collateral Management Agreement and the 2018 Collateral Management Agreement, respectively, and prior to the redemption of the 2010 Notes on July 20, 2018, served as the collateral manager to the 2010 Issuer under the 2010 Collateral Management Agreement. Fees payable to GC Advisors for providing these services offset against the base management fee payable by us under the Investment Advisory Agreement.


•	We have entered into the Adviser Revolver with GC Advisors in order to have the ability to borrow funds on a short-term basis.


•	During the first six months of calendar year of 2019, the Golub Capital Employee Grant Program Rabbi Trust, or the Trust, did not purchase any shares of our common stock. During calendar year 2018, the Trust, purchased approximately $7.2 million of shares, or 396,099 shares, of our common stock for the purpose of awarding incentive compensation to employees of Golub Capital.


•	On November 27, 2018, we entered into the Merger Agreement with GCIC, Merger Sub, GC Advisors and, for certain limited purposes, the Administrator. See Note 11 in the notes to our consolidated financial statements for further information.

GC Advisors also sponsors or manages, and may in the future sponsor or manage, other investment funds, accounts or investment vehicles (together referred to as “accounts”) that have investment mandates that are similar, in whole and in part, with ours. For example, GC Advisors presently serves as the investment adviser to Golub Capital Investment Corporation and Golub Capital BDC 3, Inc., each an unlisted business development company that primarily focuses on investing in one stop and other senior secured loans. In addition, our officers and directors serve in similar capacities for and Golub Capital Investment Corporation and Golub Capital BDC 3, Inc. GC Advisors and its affiliates may determine that an investment is appropriate for us and for one or more of those other accounts. In such event, depending on the availability of such investment and other appropriate factors, and pursuant to GC Advisors’ allocation policy, GC Advisors or its affiliates may determine that we should invest side-by-side with one or more other accounts. We do not intend to make any investments if they are not permitted by applicable law and interpretive positions of the SEC and its staff, or if they are inconsistent with GC Advisors’ allocation procedures.

In addition, we have adopted a formal code of ethics that governs the conduct of our and GC Advisors’ officers, directors and employees. Our officers and directors also remain subject to the duties imposed by both the 1940 Act and the General Corporation Law of the State of Delaware.

Critical Accounting Policies

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies.

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Fair Value Measurements

We value investments for which market quotations are readily available at their market quotations. However, a readily available market value is not expected to exist for many of the investments in our portfolio, and we value these portfolio investments at fair value as determined in good faith by our board of directors under our valuation policy and process.

Valuation methods may include comparisons of the portfolio companies to peer companies that are public, determination of the enterprise value of a portfolio company, discounted cash flow analysis and a market interest rate approach. The factors that are taken into account in fair value pricing investments include: available current market data, including relevant and applicable market trading and transaction comparables; applicable market yields and multiples; security covenants; call protection provisions; information rights; the nature and realizable value of any collateral; the portfolio company’s ability to make payments, its earnings and discounted cash flows and the markets in which it does business; comparisons of financial ratios of peer companies that are public; comparable merger and acquisition transactions; and the principal market and enterprise values. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we will consider the pricing indicated by the external event to corroborate the private equity valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and may differ materially from values that may ultimately be received or settled.

Our board of directors is ultimately and solely responsible for determining, in good faith, the fair value of investments that are not publicly traded, whose market prices are not readily available on a quarterly basis or any other situation where portfolio investments require a fair value determination.

With respect to investments for which market quotations are not readily available, our board of directors undertakes a multi-step valuation process each quarter, as described below:

Our quarterly valuation process begins with each portfolio company investment being initially valued by the investment professionals of GC Advisors responsible for credit monitoring. Preliminary valuation conclusions are then documented and discussed with our senior management and GC Advisors. The audit committee of our board of directors reviews these preliminary valuations. At least once annually, the valuation for each portfolio investment is reviewed by an independent valuation firm. The board of directors discusses valuations and determines the fair value of each investment in our portfolio in good faith.

Determination of fair values involves subjective judgments and estimates. Under current accounting standards, the notes to our consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our consolidated financial statements.

We follow ASC Topic 820 for measuring fair value. Fair value is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the assets or liabilities or market and the assets’ or liabilities’ complexity. Our fair value analysis includes an analysis of the value of any unfunded loan commitments. Assets and liabilities are categorized for disclosure purposes based upon the level of judgment associated with the inputs used to measure their value. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation of the asset or liability as of the measurement date. The three levels are defined as follows:

Level 1: Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

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no transfers among Level 1, 2 and 3 of the fair value hierarchy for assets and liabilities during the three and nine months ended June 30, 2019 and 2018. The following section describes the valuation techniques used by us to measure different assets and liabilities at fair value and includes the level within the fair value hierarchy in which the assets and liabilities are categorized.

Valuation of Investments

Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by our board of directors, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of our board of directors to assist in the valuation of each portfolio investment without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process. This valuation process is conducted at the end of each fiscal quarter, with approximately 25% (based on the number of portfolio companies) of our valuations of debt and equity investments without readily available market quotations subject to review by an independent valuation firm. As of June 30, 2019 and September 30, 2018, with the exception of money market funds included in cash and cash equivalents and restricted cash and cash equivalents (Level 1 investments) and investments measured at fair value using the NAV, all investments were valued using Level 3 inputs of the fair value hierarchy.

When determining fair value of Level 3 debt and equity investments, we may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary method for determining enterprise value uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA. A portfolio company’s EBITDA may include pro-forma adjustments for items such as acquisitions, divestitures, or expense reductions. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired, we will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, we use a market interest rate yield analysis to determine fair value.

In addition, for certain debt investments, we may base our valuation on indicative bid and ask prices provided by an independent third party pricing service. Bid prices reflect the highest price that we and others may be willing to pay. Ask prices represent the lowest price that we and others may be willing to accept. We generally use the midpoint of the bid/ask range as our best estimate of fair value of such investment.

Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize significantly less than the value at which such investment had previously been recorded.

Our investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.

Valuation of Other Financial Assets and Liabilities

Fair value of our debt is estimated using Level 3 inputs by discounting remaining payments using comparable market rates or market quotes for similar instruments at the measurement date, if available.

Revenue Recognition:

Our revenue recognition policies are as follows:

Investments and Related Investment Income: Interest income is accrued based upon the outstanding principal amount and contractual interest terms of debt investments. Premiums, discounts, and origination fees are amortized or accreted into interest income over the life of the respective debt investment. For investments with contractual PIK interest, which represents contractual interest accrued and added to the principal balance that generally becomes due at maturity, we do not accrue PIK interest if the portfolio company valuation indicates that the PIK interest is not likely to be collectible. In addition, we may generate revenue in the form of amendment, structuring or due diligence fees, fees for providing managerial assistance, consulting fees and prepayment premiums on loans and

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record these fees as fee income when received. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts as interest income. We record prepayment premiums on loans as fee income. Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Distributions received from LLC and limited partnership, or LP, investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, we will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

We account for investment transactions on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the cost basis of investment, without regard to unrealized gains or losses previously recognized. We report changes in fair value of investments from the prior period that is measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments in our Consolidated Statements of Operations.

Non-accrual: Loans may be left on accrual status during the period we are pursuing repayment of the loan. Management reviews all loans that become past due 90 days or more on principal and interest or when there is reasonable doubt that principal or interest will be collected for possible placement on non-accrual status. We generally reverse accrued interest when a loan is placed on non-accrual. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. We restore non-accrual loans to accrual status when past due principal and interest is paid and, in our management’s judgment, are likely to remain current. The total fair value of our non-accrual loans was $7.1 million as of June 30, 2019 and $5.6 million as of September 30, 2018.

Partial loan sales: We follow the guidance in ASC Topic 860, when accounting for loan participations and other partial loan sales. Such guidance requires a participation or other partial loan sale to meet the definition of a “participating interest”, as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales that do not meet the definition of a participating interest remain on our statements of assets and liabilities and the proceeds are recorded as a secured borrowing until the definition is met. Secured borrowings are carried at fair value to correspond with the related investments, which are carried at fair value.

Income taxes: See “Consolidated Results of Operations - Expenses - Excise Tax Expense.”

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are subject to financial market risks, including changes in interest rates. Many of the loans in our portfolio have floating interest rates, and we expect that our loans in the future may also have floating interest rates. These loans are usually based on a floating LIBOR and typically have interest rate reset provisions that adjust applicable interest rates under such loans to current market rates on a quarterly basis. The loans that are subject to the floating LIBOR are also subject to a minimum base rate, or floor, that we charge on our loans if the current market rates are below the respective floors. As of June 30, 2019 and September 30, 2018, the weighted average LIBOR floor on the loans subject to floating interest rates was 1.01% and 1.01%, respectively. Prior to their redemption on March 23, 2018, the Class A-1, A-2 and B 2014 Notes issued as part of the 2014 Debt Securitization had floating interest rate provisions based on three-month LIBOR that reset quarterly. The Class A-1-R, A-2-R and B-R 2014 Notes issued in connection with the refinancing of the 2014 Debt Securitization have floating rate interest provisions based on the three-month LIBOR that reset quarterly, as do the Class A, B and C-1 2018 Notes issued as part of the 2018 Debt Securitization. Finally, the MS Credit Facility II has a floating interest rate provision primarily based on one-month LIBOR. We expect that other credit facilities into which we enter in the future may have floating interest rate provisions.

Assuming that the interim and unaudited Consolidated Statement of Financial Condition as of June 30, 2019 were to remain constant and that we took no actions to alter interest rate sensitivity as of such date, the following table shows the annualized impact of hypothetical base rate changes in interest rates.



Change in interest rates	Increase (decrease) in interest income			Increase (decrease) in interest expense			Net increase (decrease) in investment income
	(In thousands)
Down 25 basis points	$	(4,504	)	$	(1,869	)	$	(2,635	)
Up 50 basis points	9,008			3,738			5,270
Up 100 basis points	18,017			7,476			10,541
Up 150 basis points	27,025			11,215			15,810
Up 200 basis points	36,034			14,953			21,081

Although we believe that this analysis is indicative of our sensitivity to interest rate changes as of June 30, 2019, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments, including borrowings under the Debt Securitizations and the MS Credit Facility II, or other borrowings, that could affect net increase in net assets resulting from operations, or net income. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis above.

We may in the future hedge against interest rate fluctuations by using standard hedging instruments such as interest rate swaps, futures, options and forward contracts to the limited extent permitted under the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to the investments in our portfolio with fixed interest rates.

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Item 4: Controls and Procedures.

As of June 30, 2019 (the end of the period covered by this report), management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Based on that evaluation, our management, including the chief executive officer and chief financial officer, concluded that, at the end of such period, our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in the Company’s periodic reports. There has not been any change in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

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Part II - Other Information

Item 1: Legal Proceedings.

We, GC Advisors and Golub Capital LLC may, from time to time, be involved in legal and regulatory proceedings arising out of our respective operations in the normal course of business or otherwise. While there can be no assurance of the ultimate disposition of any such proceedings, each of us, GC Advisors and Golub Capital LLC do not believe it is currently subject to any material legal proceedings.

Item 1A: Risk Factors.

There have been no material changes during the three months ended June 30, 2019 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2018 and our Quarterly Report on Form 10-Q for the quarter ended December 31, 2018.

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3: Defaults Upon Senior Securities.

None.

Item 4: Mine Safety Disclosures

None.

Item 5: Other Information.

None.

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Item 6: Exhibits.

EXHIBIT INDEX




Number		Description

10.1		Amended and Restated Revolving Loan Agreement, dated as of June 21, 2019, by and among Golub Capital BDC, Inc., as the borrower, and GC Advisors LLC, as the lender. (Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 814-00794), filed on June 25, 2019).
31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*
31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.*
32.1		Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*

_________________

* Filed herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



	Golub Capital BDC, Inc.

Dated: August 7, 2019	By	/s/ David B. Golub
		David B. Golub
		Chief Executive Officer
		(Principal Executive Officer)

Dated: August 7, 2019	By	/s/ Ross A. Teune
		Ross A. Teune
		Chief Financial Officer
		(Principal Accounting and Financial Officer)

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