GSBD Goldman Sachs BDC Inc

Goldman Sachs BDC, Inc. (“GSBD”, the “Company”, “we”, “us”, or “our”) (NYSE: GSBD) today reported financial results for the first quarter ended March 31, 2025 and filed its Form 10-Q with the U.S. Securities and Exchange Commission.

QUARTERLY HIGHLIGHTS

• Net investment income per share for the quarter ended March 31, 2025 was $0.42. Excluding purchase discount amortization per share of $0.01 from the Merger (as defined below), adjusted net investment income per share was $0.41, equating to an annualized net investment income yield on book value of 12.4%.1 Earnings per share for the quarter ended March 31, 2025 was $0.27.
• Net asset value ("NAV") per share as of March 31, 2025 decreased 1.6% to $13.20 from $13.41 as of December 31, 2024.
• As of March 31, 2025, the Company’s total investments at fair value and commitments were $3,861.6 million, comprised of investments in 163 portfolio companies across 38 industries. The investment portfolio was comprised of 97.5% senior secured debt, including 96.1% in first lien investments.2
• During the quarter, the Company had new investment commitments of approximately $87.8 million of which $53.8 million were funded. Fundings of previously unfunded commitments for the quarter were $37.8 million and sales and repayments activity totaled $179.3 million, resulting in net funded investment activity of $(87.7) million.
• During the quarter, MPI Engineered Technologies, LLC’s 2nd Lien/Senior Secured Debt position and ATX Networks Corp.’s 1st Lien/Senior Secured Debt position, were placed on non-accrual status. Pluralsight, Inc.’s 1st Lien/Senior Secured Debt position was restored back to accrual status due to an improvement in performance. Additionally, Animal Supply Intermediate, LLC’s 2nd Lien/Senior Secured Debt position that was on non-accrual status as of December 31, 2024 was exited. As of March 31, 2025, the Company had certain investments held in nine portfolio companies on non-accrual status. As of March 31, 2025, investments on non-accrual status amounted to 1.9% and 4.6% of the total investment portfolio at fair value and amortized cost, respectively.
• The Company’s ending net debt-to-equity ratio was 1.16x as of March 31, 2025 compared to 1.17x as of December 31, 2024.
• As of March 31, 2025, 48.0% of the Company’s approximately $1,874.9 million aggregate principal amount of debt outstanding was comprised of unsecured debt and 52.0% was comprised of secured debt.3
• On February 26, 2025, the Board of Directors approved a reduction of the base quarterly dividend to $0.32 per share (the “Base Dividend”) with upside potential through quarterly supplemental variable distributions (the “Supplemental Dividend”) in the amount of at least 50% of the Company’s net investment income in excess of the amount of the Base Dividend to the extent there is sufficient net investment income.
• The Company’s Board of Directors declared a second quarter 2025 Base Dividend of $0.32 per share and a special dividend of $0.16 per share payable to shareholders of record as of June 30, 2025.4
• The Company’s Board of Directors also declared a first quarter 2025 Supplemental Dividend of $0.05 per share payable on or about June 13, 2025 to shareholders of record as of May 30, 2025. Adjusted for the impact of the Supplemental Dividend related to the first quarter’s earnings, the Company’s first quarter adjusted NAV per share was $13.15.5
• On November 15, 2023, the Company entered into an equity distribution agreement pursuant to which it may issue up to $200 million in aggregate offering price of shares of its common stock through at-the-market offerings. No shares were issued during the three months ended March 31, 2025.

SELECTED FINANCIAL HIGHLIGHTS

(in $ millions, except per share data)

As of March 31, 2025

 

 

As of December 31, 2024

 

Investment portfolio, at fair value2

$

3,384.7

 

 

$

3,475.3

 

Total debt outstanding3

$

1,874.9

 

 

$

1,934.6

 

Net assets

$

1,548.0

 

 

$

1,572.7

 

Ending net debt-to-equity11

 

1.16x

 

 

 

1.17x

 

Net asset value per share

$

13.20

 

 

$

13.41

 

Less: Supplemental Dividend per share declared post-quarter

$

0.05

 

 

$

-

 

Adjusted net asset value per share5

$

13.15

 

 

$

13.41

 

(in $ millions, except per share data)

Three Months Ended March 31, 2025

 

 

Three Months Ended December 31, 2024

 

Total investment income

$

96.9

 

 

$

103.8

 

 

 

 

 

 

 

Net investment income after taxes

$

49.6

 

 

$

56.6

 

Less: Purchase discount amortization

$

0.8

 

 

 

1.0

 

Adjusted net investment income after taxes1

$

48.8

 

 

$

55.6

 

 

 

 

 

 

 

Net realized and unrealized gains (losses)

$

(18.0

)

 

$

(18.9

)

Add: Realized/Unrealized depreciation from the purchase discount

 

0.8

 

 

 

1.0

 

Adjusted net realized and unrealized gains (losses)1

$

(17.2

)

 

$

(17.9

)

 

 

 

 

 

 

Net investment income per share (basic and diluted)

$

0.42

 

 

$

0.48

 

Less: Purchase discount amortization per share

$

0.01

 

 

 

0.01

 

Adjusted net investment income per share1

$

0.41

 

 

$

0.47

 

 

 

 

 

 

 

Weighted average shares outstanding

 

117.3

 

 

 

117.3

 

Distribution per share

$

0.48

 

 

$

0.45

 

Total investment income for the three months ended March 31, 2025 and December 31, 2024 was $96.9 million and $103.8 million, respectively. The decrease in total investment income was due to a decrease in size of the portfolio, with the total investment at amortized cost at $3,555.5 million and $3,673.6 million as of March 31, 2025 and December 31, 2024, respectively. The decrease was also due to investments being placed on non-accrual status as a result of financial underperformance.

Net expenses before taxes for the three months ended March 31, 2025 and December 31, 2024 were $46.0 million and $45.8 million, respectively. Net expenses increased slightly by $0.2 million.

INVESTMENT ACTIVITY2

The following table summarizes investment activity for the three months ended March 31, 2025:

 

 

New Investment Commitments

 

 

Sales and Repayments

 

Investment Type

 

$ Millions

 

 

% of Total

 

 

$ Millions

 

 

% of Total

 

1st Lien/Senior Secured Debt

 

$

87.8

 

 

 

100.0

%

 

$

179.2

 

 

 

99.9

%

1st Lien/Last-Out Unitranche

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

0.1

 

2nd Lien/Senior Secured Debt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Unsecured Debt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Preferred Stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common Stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

87.8

 

 

 

100.0

%

 

$

179.3

 

 

 

100.0

%

During the three months ended March 31, 2025, new investment commitments were across six new portfolio companies and eight existing portfolio companies. Sales and repayments were primarily driven by the repayment and refinancing of our investments in six portfolio companies.

PORTFOLIO SUMMARY2

As of March 31, 2025, the Company’s investments consisted of the following:

 

 

Investments at Fair Value

 

Investment Type

 

$ Millions

% of Total

 

1st Lien/Senior Secured Debt

 

$

3,068.5

 

 

 

90.7

%

1st Lien/Last-Out Unitranche

 

 

183.2

 

 

 

5.4

 

2nd Lien/Senior Secured Debt

 

 

46.6

 

 

 

1.4

 

Unsecured Debt

 

 

17.0

 

 

 

0.5

 

Preferred Stock

 

 

32.0

 

 

 

0.9

 

Common Stock

 

 

36.9

 

 

 

1.1

 

Warrants

 

 

0.5

 

 

 

—

6

Total

 

$

3,384.7

 

 

 

100.0

%

The following table presents certain selected information regarding the Company’s investments:

 

 

As of

 

 

 

March 31, 2025

December 31, 2024

 

Number of portfolio companies

 

 

163

 

 

 

164

 

Percentage of performing debt bearing a floating rate7

 

 

100.0

%

 

 

99.4

%

Percentage of performing debt bearing a fixed rate7

 

 

0.0

%

 

 

0.6

%

Weighted average yield on debt and income producing investments, at amortized cost8

 

 

10.8

%

 

 

11.2

%

Weighted average yield on debt and income producing investments, at fair value8

 

 

11.8

%

 

 

14.1

%

Weighted average leverage (net debt/EBITDA)9

 

5.8x

 

 

6.2x

 

Weighted average interest coverage9

 

1.9x

 

 

1.8x

 

Median EBITDA9

$

67.56 million

 

$

66.14 million

 

As of March 31, 2025, investments on non-accrual status represented 1.9% and 4.6% of the total investment portfolio at fair value and amortized cost, respectively.

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2025, the Company had $1,874.9 million aggregate principal amount of debt outstanding, comprised of $974.9 million of outstanding borrowings under its senior secured revolving credit facility (“Revolving Credit Facility”), with Truist Bank, as administrative agent, and Bank of America, N.A., as syndication agent, $500.0 million of unsecured notes due 2026 and $400.0 million of unsecured notes due 2027. The combined weighted average interest rate on debt outstanding was 5.29% for the three months ended March 31, 2025. As of March 31, 2025, the Company had $720.1 million of availability under its Revolving Credit Facility and $82.8 million in cash and cash equivalents.3,10

The Company’s ending net debt-to-equity leverage ratio was 1.16x for the three months ended March 31, 2025, as compared to 1.17x for the three months ended December 31, 2024.11

CONFERENCE CALL

The Company will host an earnings conference call on Friday, May 9, 2025 at 9:00 am Eastern Time. All interested parties are invited to participate in the conference call by dialing (800) 289-0459; international callers should dial +1 (929) 477-0443; conference ID 427709. All participants are asked to dial in approximately 10-15 minutes prior to the call, and reference “Goldman Sachs BDC, Inc.” when prompted. For a slide presentation that the Company may refer to on the earnings conference call, please visit the Investor Resources section of the Company’s website at www.goldmansachsbdc.com. An archived replay will be available on the Company’s webcast link located on the Investor Resources section of the Company’s website.

Please direct any questions regarding the conference call to Goldman Sachs BDC, Inc. Investor Relations, via e-mail, at gsbdc-investor-relations@gs.com.

ENDNOTES

1. On October 12, 2020, we completed our merger (the “Merger”) with Goldman Sachs Middle Market Lending Corp. (“MMLC”). The Merger was accounted for as an asset acquisition in accordance with ASC 805-50, Business Combinations — Related Issues. The consideration paid to MMLC’s shareholders was less than the aggregate fair values of the assets acquired and liabilities assumed, which resulted in a purchase discount (the “purchase discount”). The purchase discount was allocated to the cost of MMLC investments acquired by us on a pro-rata basis based on their relative fair values as of the closing date. Immediately following the Merger with MMLC, we marked the investments to their respective fair values and, as a result, the purchase discount allocated to the cost basis of the investments acquired was immediately recognized as unrealized appreciation on our Consolidated Statement of Operations. The purchase discount allocated to the loan investments acquired will amortize over the life of each respective loan through interest income, with a corresponding adjustment recorded as unrealized appreciation on such loan acquired through its ultimate disposition. The purchase discount allocated to equity investments acquired will not amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, we will recognize a realized gain with a corresponding reversal of the unrealized appreciation on disposition of such equity investments acquired. As a supplement to our financial results reported in accordance with generally accepted accounting principles in the United States of America (“GAAP”), we have provided, as detailed below, certain non-GAAP financial measures to our operating results that exclude the aforementioned purchase discount and the ongoing amortization thereof, as determined in accordance with GAAP. The non-GAAP financial measures include i) Adjusted net investment income per share; ii) Adjusted net investment income after taxes; and iii) Adjusted net realized and unrealized gains (losses). We believe that the adjustment to exclude the full effect of the purchase discount is meaningful because it is a measure that we and investors use to assess our financial condition and results of operations. Although these non-GAAP financial measures are intended to enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The aforementioned non-GAAP financial measures may not be comparable to similar non-GAAP financial measures used by other companies.
2. The discussion of the investment portfolio excludes the investment, if any, in a money market fund managed by an affiliate of The Goldman Sachs Group, Inc. (the “Money Market Fund”). As of March 31, 2025, the Company had an investment of $0.03 million in the Money Market Fund.
3. Total debt outstanding excludes netting of debt issuance costs of $6.8 million and $8.2 million, respectively, as of March 31, 2025 and December 31, 2024.
4. The $0.32 per share Base Dividend and $0.16 per share special dividend are payable on or about July 28, 2025 to shareholders of record as of June 30, 2025.
5. On February 26, 2025, we announced a distribution framework that is comprised of a quarterly base distribution declared in the relevant quarter and a variable supplemental distribution declared in the following quarter, subject to satisfaction of certain measurement tests and the approval of our Board. As a supplement, we have provided a non-GAAP financial measure to our financial condition that adjusts the net asset value per share for the supplemental distribution per share. We believe that the adjustment to the net asset value per share for the supplemental dividend is meaningful because it aligns the supplemental distribution to its relevant quarter earnings. Although this non-GAAP financial measure is intended to enhance investors’ understanding of our business and performance, this non-GAAP financial measure should not be considered an alternative to GAAP. The aforementioned non-GAAP financial measure may not be comparable to similar non-GAAP financial measures used by other companies.
6. Amount rounds to less than 0.1%.
7. The fixed versus floating composition has been calculated as a percentage of performing debt investments measured on a fair value basis, including income producing preferred stock investments and excludes investments, if any, placed on non-accrual status.
8. Computed based on the (a) annual actual interest rate or yield earned plus amortization of fees and discounts on the performing debt and other income producing investments as of the reporting date, divided by (b) the total performing debt and other income producing investments (excluding investments on non-accrual) at amortized cost or fair value, respectively. This calculation excludes exit fees that are receivable upon repayment of the investment. Excludes the purchase discount and amortization related to the Merger.
9. For a particular portfolio company, we calculate the level of contractual indebtedness net of cash (“net debt”) owed by the portfolio company and compare that amount to measures of cash flow available to service the net debt. To calculate net debt, we include debt that is both senior and pari passu to the tranche of debt owned by us but exclude debt that is legally and contractually subordinated in ranking to the debt owned by us. We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by us relative to other senior and junior creditors of a portfolio company. We typically calculate cash flow available for debt service at a portfolio company by taking net income before net interest expense, income tax expense, depreciation and amortization (“EBITDA”) for the trailing twelve month period. Weighted average net debt-to-EBITDA is weighted based on the fair value of our debt investments and excludes investments where net debt-to-EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. For a particular portfolio company, we also compare that amount of EBITDA to the portfolio company’s contractual interest expense (“interest coverage ratio”). We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual interest obligations of the portfolio company. Weighted average interest coverage is weighted based on the fair value of our performing debt investments and excludes investments where interest coverage may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Median EBITDA is based on our debt investments and excludes investments where net debt-to-EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. Portfolio company statistics are derived from the financial statements most recently provided to us of each portfolio company as of the reported end date. Statistics of the portfolio companies have not been independently verified by us and may reflect a normalized or adjusted amount. As of March 31, 2025 and December 31, 2024, investments where net debt-to-EBITDA may not be the appropriate measure of credit risk represented 21.9% and 20.5%, respectively, of total debt investments at fair value.
10. The Company’s Revolving Credit Facility has debt outstanding denominated in currencies other than U.S. Dollars (“USD”). These balances have been converted to USD using applicable foreign currency exchange rates as of March 31, 2025. As a result, the Revolving Credit Facility’s outstanding borrowings and the available debt amounts may not sum to the total debt commitment amount.
11. The ending net debt-to-equity leverage ratio is calculated by using the total borrowings net of cash and cash equivalents divided by equity as of March 31, 2025 and excludes unfunded commitments.

Goldman Sachs BDC, Inc. Consolidated Statements of Assets and Liabilities (in thousands, except share and per share amounts)

 

 

March 31, 2025 (Unaudited)

 

 

December 31, 2024

 

Assets

 

 

 

 

 

 

Investments, at fair value

 

 

 

 

 

 

Non-controlled/non-affiliated investments (cost of $3,436,737 and $3,533,627)

 

$

3,279,219

 

 

$

3,368,503

 

Non-controlled affiliated investments (cost of $118,749 and $139,955)

 

 

105,450

 

 

 

106,755

 

Total investments, at fair value (cost of $3,555,486 and $3,673,582)

 

$

3,384,669

 

 

$

3,475,258

 

Investments in affiliated money market fund (cost of $29 and $25,238)

 

 

29

 

 

 

25,238

 

Cash

 

 

82,759

 

 

 

61,795

 

Interest and dividends receivable

 

 

23,588

 

 

 

28,092

 

Deferred financing costs

 

 

11,091

 

 

 

11,897

 

Other assets

 

 

1,692

 

 

 

1,103

 

Total assets

 

$

3,503,828

 

 

$

3,603,383

 

Liabilities

 

 

 

 

 

 

Debt (net of debt issuance costs of $6,871 and $8,176)

 

$

1,868,054

 

 

$

1,926,452

 

Interest and other debt expenses payable

 

 

5,446

 

 

 

21,289

 

Management fees payable

 

 

8,681

 

 

 

8,780

 

Incentive fees payable

 

 

6,804

 

 

 

6,330

 

Distribution payable

 

 

56,303

 

 

 

52,784

 

Unrealized depreciation on foreign currency forward contracts

 

 

127

 

 

 

38

 

Secured borrowings

 

 

2,989

 

 

 

2,920

 

Accrued expenses and other liabilities

 

 

7,474

 

 

 

12,090

 

Total liabilities

 

$

1,955,878

 

 

$

2,030,683

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

Net assets

 

 

 

 

 

 

Preferred stock, par value $0.001 per share (1,000,000 shares authorized, no shares issued and outstanding)

 

$

—

 

 

$

—

 

Common stock, par value $0.001 per share (200,000,000 shares authorized, 117,297,222 and 117,297,222 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively)

 

 

117

 

 

 

117

 

Paid-in capital in excess of par

 

 

1,946,253

 

 

 

1,946,253

 

Distributable earnings (loss)

 

 

(398,420

)

 

 

(373,670

)

Total net assets

 

$

1,547,950

 

 

$

1,572,700

 

Total liabilities and net assets

 

$

3,503,828

 

 

$

3,603,383

 

Net asset value per share

 

$

13.20

 

 

$

13.41

 

Goldman Sachs BDC, Inc. Consolidated Statements of Operations (in thousands, except share and per share amounts)

 

 

For the Three Months Ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

Investment income:

 

 

 

 

 

 

From non-controlled/non-affiliated investments:

 

 

 

 

 

 

Interest income

 

$

84,204

 

 

$

96,910

 

Payment-in-kind income

 

 

9,625

 

 

 

12,646

 

Other income

 

 

985

 

 

 

857

 

Dividend income

 

 

—

 

 

 

—

 

From non-controlled affiliated investments:

 

 

 

 

 

 

Interest income

 

 

1,361

 

 

 

656

 

Dividend income

 

 

173

 

 

 

412

 

Payment-in-kind income

 

 

556

 

 

 

55

 

Other income

 

 

36

 

 

 

7

 

Total investment income

 

$

96,940

 

 

$

111,543

 

Expenses:

 

 

 

 

 

 

Interest and other debt expenses

 

$

28,305

 

 

$

27,614

 

Incentive fees

 

 

6,804

 

 

 

10,882

 

Management fees

 

 

8,681

 

 

 

8,732

 

Professional fees

 

 

964

 

 

 

1,110

 

Directors’ fees

 

 

207

 

 

 

207

 

Other general and administrative expenses

 

 

1,043

 

 

 

1,062

 

Total expenses

 

$

46,004

 

 

$

49,607

 

Net expenses

 

$

46,004

 

 

$

49,607

 

Net investment income before taxes

 

$

50,936

 

 

$

61,936

 

Income tax expense, including excise tax

 

$

1,322

 

 

$

1,076

 

Net investment income after taxes

 

$

49,614

 

 

$

60,860

 

Net realized and unrealized gains (losses) on investment transactions:

 

 

 

 

 

 

Net realized gain (loss) from:

 

 

 

 

 

 

Non-controlled/non-affiliated investments

 

$

(21,570

)

 

$

(17,646

)

Non-controlled affiliated investments

 

 

(22,902

)

 

 

658

 

Foreign currency and other transactions

 

 

239

 

 

 

186

 

Net change in unrealized appreciation (depreciation) from:

 

 

 

 

 

 

Non-controlled/non-affiliated investments

 

 

7,589

 

 

 

(2,095

)

Non-controlled affiliated investments

 

 

19,901

 

 

 

(976

)

Foreign currency forward contracts

 

 

(89

)

 

 

145

 

Foreign currency translations and other transactions

 

 

(1,157

)

 

 

1,350

 

Net realized and unrealized gains (losses)

 

$

(17,989

)

 

$

(18,378

)

(Provision) benefit for taxes on realized gain/loss on investments

 

$

(72

)

 

$

16

 

(Provision) benefit for taxes on unrealized appreciation/depreciation on investments

 

 

—

 

 

 

(46

)

Net increase (decrease) in net assets from operations

 

$

31,553

 

 

$

42,452

 

Weighted average shares outstanding

 

 

117,297,222

 

 

 

110,076,876

 

Basic and diluted net investment income per share

 

$

0.42

 

 

$

0.55

 

Basic and diluted earnings (loss) per share

 

$

0.27

 

 

$

0.39

 

ABOUT GOLDMAN SACHS BDC, INC.

Goldman Sachs BDC, Inc. is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940. GSBD was formed by The Goldman Sachs Group, Inc. (“Goldman Sachs”) to invest primarily in middle-market companies in the United States, and is externally managed by Goldman Sachs Asset Management, L.P., an SEC-registered investment adviser and a wholly-owned subsidiary of Goldman Sachs. GSBD seeks to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien, first lien/last-out unitranche and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments. For more information, visit www.goldmansachsbdc.com. Information on the website is not incorporated by reference into this press release and is provided merely for convenience.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition, dividends and other similar matters. These statements represent the Company’s belief regarding future events that, by their nature, are uncertain and outside of the Company’s control. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, the risks, uncertainties and other factors we identify in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in filings we make with the Securities and Exchange Commission, and it is not possible for us to predict or identify all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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Goldman Sachs BDC, Inc. Investor Contact: Austin Neri, 212-902-1000 Media Contact: Victoria Zarella, 212-902-5400