Earning Date, Transcript Summary & Report

Direct Lending Activity Surge: Our Direct Lending Americas platform committed a total of approximately $13 billion and deployed approximately $10.8 billion, which is more than double the activity in 2023.

Investment Commitments and Harvests: The fourth quarter marked another effective quarter for GSBD with respect to both new investment commitments and harvest activity.

First-Lien Position Increase: We continue to increase the percentage of first-lien positions in the portfolio moving away from second-lien unsecured debt and preferred equity, increasing from 89.4% in December 2021 to 96.3% at year-end 2024.

Net Investment Income Overview: Our net investment income per share for the quarter was $0.48 and net asset value per share was $13.41 as of quarter end.

Special Dividend Announcement: The Board of Directors has declared a special dividend of $0.16 per share payable to shareholders of record as of March 31, 2025, with two additional $0.16 per share special dividends expected in the second and third quarter of this year.

Record Capital Commitments: GSBD committed its highest level of capital since integration of the BDC complex three years ago, with approximately $1.3 billion in new commitments, three times more than new investment commitments of $423 million made in 2023.

First-Lien Loan Focus: 99.9% of our originations during the quarter were in first-lien loans, reflecting our bias towards maintaining exposure to investments that are higher up in the capital structure.

Investment Portfolio Overview: The company held investments in 164 portfolio companies operating across 39 different industries, with a weighted average yield of our investment portfolio at amortized cost at the end of the fourth quarter was 10.1%.

Interest Coverage Improvement: The current weighted average interest coverage of the companies in our investment portfolio at quarter end increased to 1.8 times in the fourth quarter compared to 1.7 times during the third quarter.

Non-Accrual Investment Decrease: Investments on non-accrual status decreased to 2% of the total investment portfolio at fair value, from 2.2% as of September 30, 2024.

Net Asset Value Decline: Net asset value per share decreased by approximately 1% relative to the third quarter, attributed to net realized and unrealized losses.

Dividend Reduction Announcement: The company is resetting its quarterly dividend from $0.45 to a base of $0.32 per share, indicating a reduction in regular income for shareholders.

Investment Portfolio Yield Decline: The weighted average yield of the investment portfolio decreased from 10.9% in the prior quarter to 10.1% in the fourth quarter.

Debt Yield Decline: The weighted average yield of total debt and income-producing investments also decreased from 11.8% to 11.2% during the same period.

Investment Income Decline: The company reported a decline in total investment income from $110.4 million in the third quarter to $103.8 million in the fourth quarter.

PIK Income Increase: The increase in PIK (Payment-in-Kind) income as a percentage of total investment income rose to 15% from 9%, indicating a reliance on non-cash income.

Undistributed Taxable Income Challenges: The company has a significant amount of undistributed taxable income, which may suggest challenges in generating sufficient cash income to meet distribution needs.