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    Ray Cheesman • Anfield Capital Management, LLC

    Ray Cheesman's questions to Golub Capital BDC Inc (GBDC) leadership

    Ray Cheesman's questions to Golub Capital BDC Inc (GBDC) leadership • Q1 2025

    Question

    In a follow-up, Ray Cheesman of Anfield Capital Management asked how artificial intelligence might impact the software lending category, a key area for GBDC, and the ability to distinguish between winners and losers.

    Answer

    David B. Golub, Executive, stated that while software has been a favorable industry, distinguishing good from bad investments will become even more critical with AI. He explained that some companies will use AI to enhance their value, while others will be challenged. He stressed that GBDC's deep internal expertise is crucial for evaluating which firms will be winners or losers as a consequence of AI and other market factors.

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    Ray Cheesman's questions to Golub Capital BDC Inc (GBDC) leadership • Q4 2024

    Question

    Ray Cheesman of Anfield Capital Management, LLC asked about the drivers behind the decline in portfolio yield and sought assurance that adverse sponsor behavior in workouts, like the Pluralsight case, was not a recurring issue. He also inquired about the possibility of merging with other vehicles like GBDC 4 and the company's optimal size.

    Answer

    Executive David B. Golub attributed the yield decline to a combination of repricings, lower spreads on new loans, and declining base rates. Regarding sponsor behavior, he stated that while GBDC prefers collaborative workouts, they are prepared to 'take the keys' if a sponsor is unwilling to contribute further. Golub confirmed the existence of a private BDC, GBDC 4, and acknowledged a future merger is possible. He also noted that optimal size is considered at the entire Golub Capital platform level to match dry powder with market opportunities.

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