Item 1.01. Entry into a Material Definitive Agreement.
On June 18, 2020, Golub Capital BDC Funding II LLC ("Funding II"), a
wholly-owned subsidiary of Golub Capital BDC, Inc. (the "Company"), entered into
an amendment to the senior secured revolving credit facility (as amended, the
"Amended MS Credit Facility II") by and among Funding II, as the borrower, the
Company, as the originator and servicer, Morgan Stanley Senior Funding, Inc., as
the administrative agent ("Morgan Stanley"), 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, National Association, as collateral agent,
account bank, and collateral custodian, which amended the documents governing
the current credit facility between such parties (the "Prior MS Credit Facility
II"). The Amended MS Credit Facility II was effective as of June 18, 2020.
The Amended MS Credit Facility II increased the borrowing capacity through the
full term of the facility from $200.0 million to $400.0 million, which borrowing
capacity had been scheduled to be reduced to $200.0 million as of June 30, 2020.
During the revolving period, which expires on February 1, 2021, borrowings under
the Amended MS Credit Facility II bear interest at the applicable base rate plus
2.45%, which is an increase from the base rate plus 2.05% under the Prior MS
Credit Facility II. Following expiration of the revolving period, the interest
rate on borrowings under the Amended MS Credit Facility II will reset to the
applicable base rate plus 2.95% for the remaining term of the Amended MS Credit
Facility II, which is an increase from the applicable base rate plus 2.55% under
the Prior 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 Amended MS Credit Facility II is the same as under the Prior
MS Credit Facility II: (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 Amended MS Credit Facility
II is February 1, 2024, which is the same as under the Prior MS Credit Facility
II.
The Amended MS Credit Facility II remains 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. Borrowing under the Amended MS Credit Facility II remains subject to
the leverage restrictions contained in the Investment Company Act of 1940, as
amended (the "1940 Act"). In accordance with the 1940 Act, with certain limited
exceptions, the Company is currently allowed to borrow amounts such that its
asset coverage, as defined in the 1940 Act, is at least 150% after such
borrowing.
The description above is only a summary of the material provisions of the
Amended MS Credit Facility II and is qualified in its entirety by reference to a
copy of the Amended MS Credit Facility II, which is filed as Exhibit 10.1 to
this current report on Form 8-K.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under
an Off-Balance Sheet Arrangement of Registrant.
The information contained in Item 1.01 of this current report on Form 8-K is
incorporated by reference in this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
10.1 Fifth Amendment to Loan and Servicing Agreement, dated as of June 18,
2020, by and among Golub Capital BDC Funding II LLC, as the borrower;
Golub Capital BDC, Inc., as the originator and as the servicer; Morgan
Stanley Senior Funding, Inc., as the administrative agent; and Morgan
Stanley Bank, N.A., as the lender.
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