Goldman Sachs BDC Inc (GSBD) 2024 Q1 法說會逐字稿

Good morning. This is Austin Neri, a member of the Investor Relations team for Goldman Sachs BDC Inc., and I would like to welcome everyone to the Goldman Sachs BDC, Inc., first-quarter 2024 earnings conference call. (Event Instructions)

早安.我是 Austin Neri，高盛 BDC Inc. 投資者關係團隊的成員，我歡迎大家參加高盛 BDC, Inc. 2024 年第一季財報電話會議。（活動須知）

Before we begin today's call, I would like to remind our listeners that today's remarks may include forward looking statements. These statements represent the company's belief regarding future events that by their nature are uncertain and outside of the company's control. The company's actual results and financial condition may differ possibly materially from what is indicated in those forward-looking statements as a result of a number of factors, including those described from time to time in the company's SEC filings.

在我們開始今天的電話會議之前，我想提醒我們的聽眾，今天的言論可能包含前瞻性陳述。這些陳述代表了公司對未來事件的信念，這些事件本質上是不確定的並且超出了公司的控制範圍。由於多種因素（包括公司向 SEC 備案中不時描述的因素），公司的實際業績和財務狀況可能與這些前瞻性陳述中所示的內容有重大差異。

This audiocast is copyrighted material of Goldman Sachs BDC Inc., and may not be duplicated, reproduced or rebroadcast without our consent. Yesterday after the market closed, the company issued an earnings press release and posted a supplemental earnings presentation with which can be found on the homepage of our website at www.goldmansachsbdc.com under the Investor Resources section and which include reconciliations of non-GAAP measures to the most directly comparable GAAP measures.

此音訊廣播是 Goldman Sachs BDC Inc. 的版權資料，未經我們同意，不得複製、轉載或轉播。昨天收盤後，該公司發布了一份收益新聞稿，並發布了一份補充收益演示文稿，您可以在我們網站www.goldmansachsbdc.com 的主頁投資者資源部分找到該演示文稿，其中包括非GAAP 指標的調整表與最直接可比較的 GAAP 衡量標準相比較。

These documents should be reviewed in conjunction with the company's quarterly report on Form 10-Q filed yesterday with the SEC. This conference call is being recorded today, Wednesday, May 8, 2024 for replay purposes.

這些文件應與公司昨天向 SEC 提交的 10-Q 表格季度報告一併審查。本次電話會議將於今天（2024 年 5 月 8 日星期三）錄製，以供重播之用。

I'll now turn the call over to Alex Chi, Co-Chief Executive Officer of Goldman Sachs BDC, Inc.

我現在將電話轉給高盛 BDC, Inc. 聯合執行長 Alex Chi。

Thank you, Austin. Good morning, everyone, and thank you for joining us for our first-quarter 2024 earnings conference call. I'm here today with David Miller, our Co-Chief Executive Officer, Tucker Greene, our Chief Operating Officer, and Stan Matuszewski, our Chief Financial Officer.

謝謝你，奧斯汀。大家早安，感謝您參加我們的 2024 年第一季財報電話會議。今天我與我們的聯合執行長 David Miller、我們的營運長 Tucker Greene 和我們的財務長 Stan Matuszewski 一起來到這裡。

I’ll begin the call by providing a brief overview of our first quarter results and then discuss the current market environment in more detail. I'll then turn the call over to David and Tucker to describe our portfolio activity performance before handing it off to Stan to take us through our financial results. And then finally, we'll open the line for Q&A.

我將首先簡要概述我們第一季的業績，然後更詳細地討論當前的市場環境。然後，我會將電話轉給大衛和塔克，描述我們的投資組合活動表現，然後將其交給斯坦，讓他介紹我們的財務表現。最後，我們將開通問答熱線。

With that, let's get to our first quarter results. Our net investment income per share for the quarter was $0.55 and net asset value per share was $14.55 a decrease of approximately 0.5% or $0.07 from the end of the fourth quarter. Our net investment income again exceeded our quarterly dividend, but the excess was offset by net realized and unrealized losses during the quarter, which led to the slight decrease in NAV.

接下來，我們來看看第一季的業績。本季每股淨投資收益為 0.55 美元，每股資產淨值為 14.55 美元，較第四季末下降約 0.5%，即 0.07 美元。我們的淨投資收入再次超過了季度股息，但超出部分被本季度已實現和未實現的淨虧損所抵消，這導致資產淨值略有下降。

On a fair value basis, first lien loans represent 96.5% of our assets as of March 31, which reflects our bias towards maintaining exposure to credits that are higher up in the capital structure. Consistent with prior quarters, all new investment commitments this quarter with the first lien credits.

截至 3 月 31 日，以公允價值計算，第一留置權貸款占我們資產的 96.5%，這反映了我們傾向於維持資本結構中較高層的信用風險。與前幾季一致，本季所有新的投資承諾均具有第一留置權信貸。

As we announced after the market closed yesterday, our Board declared a second quarter dividend of $0.45 per share, payable to shareholders of record as of June 20, 2024. This marks the company's 37th consecutive quarter of a $0.45 per share dividend totaling $16.65 per share since our IPO, excluding the special dividends we paid in 2021 following the merger with MMLC.

正如我們昨天收盤後宣布的那樣，我們的董事會宣布第二季度股息為每股 0.45 美元，支付給截至 2024 年 6 月 20 日在冊的股東。這標誌著該公司自 IPO 以來連續第 37 個季度派發每股 0.45 美元的股息，總計每股 16.65 美元，不包括我們在 2021 年與 MMLC 合併後支付的特別股息。

Now with respect to broader market conditions, the syndicated loan market rebounded significantly in the first quarter, taking back share from direct lenders, naming companies with larger enterprise values. We saw this trend on the large-cap side of our private credit platform. However, we believe direct lenders will continue to find attractive opportunities to deploy capital with borrowers and their private equity sponsors value the certainty and flexibility that private credit provides.

現在，就更廣泛的市場狀況而言，銀團貸款市場在第一季顯著反彈，從直接貸款機構手中奪回了份額，指定了企業價值較大的公司。我們在私人信貸平台的大盤股方面看到了這一趨勢。然而，我們相信，直接貸款人將繼續尋找有吸引力的機會，與借款人一起部署資本，而他們的私募股權發起人也重視私人信貸提供的確定性和靈活性。

As example of that dynamic, we served as the largest lead lender and administrative agent in a loan to EQT in connection with their acquisition of Zeus and manufacture of critical components in the medical and industrial end markets. [USA, dedusk] is another example where our private credit platform was a lead lender and administrative agent.

作為這種動態的一個例子，我們在向 EQT 提供的貸款中擔任最大的牽頭貸款人和行政代理人，該貸款涉及 EQT 收購 Zeus 以及醫療和工業終端市場關鍵組件的製造。 [美國，dedusk] 是另一個例子，我們的私人信貸平台是主要貸款人和行政代理。

USA debusk provides industrial cleaning and specialty services supporting routine maintenance and refurbishments of chemical plants, refining and renewable facilities and other industrial infrastructure. Given our ability to draw on a broader Goldman Sachs platform, including our investment bank, GSBD and the private credit platform are poised to benefit from the significant backlog of sponsor activity that's channeling through our M&A franchise, in addition to add on or refinancing activity from existing portfolio companies.

USA debusk 提供工業清潔和專業服務，支援化工廠、煉油和再生設施以及其他工業基礎設施的日常維護和翻新。鑑於我們有能力利用更廣泛的高盛平台，包括我們的投資銀行、GSBD 和私人信貸平台，除了增加或再融資活動外，我們還準備從透過我們的併購專營權引導的大量積壓的贊助商活動中受益。

We remain confident that the $1.2 trillion of private equity dry powder and the pressure to return capital to LP investors was serve as a catalyst to restart what has been a relatively muted sponsor M&A market, and we're starting to see a significant pickup in activity in our pipeline. Despite a lower than normal deal environment a year ago, first quarter M&A volumes are up 34% year over year off of a 15-year low of sponsor activity in 2023.

我們仍然相信，1.2 兆美元的私募股權乾粉和向有限合夥投資者返還資本的壓力將成為重啟相對平靜的贊助商併購市場的催化劑，我們開始看到活動顯著回昇在我們的管道中。儘管一年前的交易環境低於正常水平，但 2023 年第一季的併購交易量仍同比增長 34%，較 2023 年發起人活動的 15 年來最低水平有所上升。

And we saw a good mix of public to private, sponsor to sponsor and strategic acquisitions of portfolio companies, which also led to some nice harvest. Pressure on sponsors and monetize portfolio companies from legacy vintages will only continue to benefit private credit. It's worth noting that while we're seeing continued spread compression from supply demand dynamics, credit fundamentals have remained in line with our expectations, and recent originations are still exhibiting sensible overall leverage levels and low LTVs.

我們看到了公私對私、贊助商對贊助商以及對投資組合公司的策略收購的良好組合，這也帶來了一些不錯的收穫。贊助商和將傳統年份的投資組合公司貨幣化的壓力只會繼續有利於私人信貸。值得注意的是，雖然我們看到供需動態帶來的利差持續壓縮，但信貸基本面仍然符合我們的預期，並且近期的貸款仍表現出合理的整體槓桿水平和較低的貸款價值比。

Again, we remain committed to leveraging the broader private credit and Goldman Sachs platform for the benefit of GSBD shareholders in the quarters and years ahead. With that, let me turn it over to my co-CEO, David Miller.

再次，我們仍然致力於利用更廣泛的私人信貸和高盛平台，在未來幾季和幾年內為 GSBD 股東帶來利益。接下來，讓我將其交給我的聯合執行長 David Miller。

Thanks, Alex. During the quarter, we originated $359.6 million in new investment commitments to 7 new and 13 existing portfolio companies. Sales and repayment activity totaled $115.7 million, primarily driven by the full repayment of investments in four portfolio companies. In particular as we continue to upgrade the quality of the portfolio, we are pleased with the full repayment of one junior lien and an exit of an equity position.

謝謝，亞歷克斯。本季度，我們向 7 家新投資組合公司和 13 家現有投資組合公司作出了 3.596 億美元的新投資承諾。銷售和還款活動總計 1.157 億美元，主要是由於四家投資組合公司的投資全額償還所致。特別是隨著我們不斷提升投資組合的質量，我們對一項初級留置權的全額償還和股權的退出感到高興。

Turning to portfolio composition. As of March 31, 2024, total investments in our portfolio were $3.4 billion at fair value, comprising 97.5% in senior secured loans including 91.9% first lien, 4.6% in first lien last-out unitranche and 1% in second-lien, as well as a negligible amount in unsecured debt and 1.9% in a combination preferred and common stock and warrants.

轉向投資組合構成。截至2024 年3 月31 日，我們投資組合的總投資以公允價值計算為34 億美元，其中97.5% 為優先擔保貸款，其中91.9% 為第一留置權，4.6% 為第一留置權最後留置權，1% 為第二留置權。

As of March 31, 2024, the company held investments in 149 portfolio companies operating across 39 different industries. The weighted average yield of our investment portfolio at amortized cost at the end of the first quarter was 11.9% as compared to 11.8% from the prior quarter. Weighted average yield of our total debt and income-producing investments at amortized cost due to the first quarter was 12.7% as compared to 12.6% at the end of Q4.

截至 2024 年 3 月 31 日，該公司對 39 個不同行業的 149 家投資組合公司進行了投資。第一季末我們投資組合的攤餘成本加權平均收益率為 11.9%，上一季為 11.8%。第一季以攤餘成本計算的總債務和創收投資的加權平均收益率為 12.7%，而第四季末為 12.6%。

I will now turn the call over to Tucker Greene to discuss overall credit quality.

我現在將把電話轉給塔克·格林，討論整體信用品質。

Thank you, David, and the weighted average net debt to EBITDA of the companies in our investment portfolio remained flat at 6.1 times during the first quarter as compared to the fourth quarter. Importantly, our portfolio companies had both top line growth and EBITDA growth year over year on a weighted average basis. The weighted average interest coverage of the companies in our investment portfolio quarter end remained flat at 1.5 times in the first quarter as compared to the fourth quarter.

謝謝大衛，我們投資組合中公司的加權平均淨負債與 EBITDA 相比，第一季與第四季相比保持在 6.1 倍。重要的是，我們的投資組合公司在加權平均基礎上實現了營收成長和 EBITDA 年成長。與第四季相比，我們投資組合季末公司的加權平均利息保障倍數第一季維持在1.5倍。

And finally, turning to asset quality. During the quarter, specialty dental brands also known as LCG Vardiman Black, a first lien debt position that was restructured and MPI, a second-lien position for both restored to accrual status. As of March 31, 2024, investments on nonaccrual status decreased to 1.6% of the total investment portfolio at fair value from 2.3% as of December 31, 2023 and 3.3% of the total investment portfolio at amortized cost from 3.8% as of December 31, 2023.

最後，轉向資產品質。本季度，專業牙科品牌（也稱為 LCG Vardiman Black）（已重組的第一留置權債務頭寸）和 MPI（第二留置權頭寸）均恢復至應計狀態。截至2024年3月31日，非應計狀態投資佔以公允價值計量的投資組合總額的比例從2023年12月31日的2.3%下降至1.6%，佔按攤餘成本計量的投資組合總額的比例從12月31日的3.8%下降至3.3% ，2023。

I will now turn the call over to Stan Matuszewski to walk through our financial results.

我現在將把電話轉給 Stan Matuszewski，讓他詳細介紹我們的財務表現。

Thank you, Tucker. We ended the first quarter of 2024 with total portfolio investments at fair value of $3.4 billion, outstanding debt of $1.8 billion and net assets of $1.6 billion. Our ending net debt to equity ratio as of the end of the first quarter was 1.10 times, which continues to be below our target leverage of 1.25 times.

謝謝你，塔克。截至 2024 年第一季度，我們的投資組合投資總額公允價值為 34 億美元，未償債務為 18 億美元，淨資產為 16 億美元。截至第一季末，我們的期末淨負債與股本比率為 1.10 倍，繼續低於我們 1.25 倍的目標槓桿率。

During the quarter, we closed a public offering of $400 million aggregate principal amount of unsecured notes due in 2027. The 2027 notes bear interest at a fixed rate of 6.375%. The net proceeds from the sale of the 2027 notes were used to pay down a portion of our secured revolving credit facility. At quarter end approximately 68% of the Company's total principal amount of debt outstanding was in unsecured debt, and we had $1,111 million of capacity available under our secured revolving credit facility.

本季度，我們完成了本金總額為 4 億美元、將於 2027 年到期的無擔保票據的公開發行。2027 年票據的固定利率為 6.375%。出售 2027 年票據的淨收益用於償還我們的部分擔保循環信貸額度。截至季末，公司未償債務本金總額的約 68% 為無擔保債務，我們的有擔保循環信貸額度下擁有 11.11 億美元的可用能力。

In addition to our newly issued 2027 notes, we have two separate unsecured notes due in February 2025 and January 2026, respectively. We plan to address these maturities at the necessary time. Before continuing to the income statement, as a reminder, in addition to GAAP financial measures, we will also reference certain non-GAAP or adjusted measures.

除了我們新發行的 2027 年票據外，我們還有兩張單獨的無擔保票據分別於 2025 年 2 月和 2026 年 1 月到期。我們計劃在必要的時候解決這些到期問題。在繼續討論損益表之前，提醒一下，除了 GAAP 財務指標外，我們還將參考某些非 GAAP 或調整後的指標。

This is intended to make the company's financial results easier to compare to results prior to our October 2020 merger with Goldman Sachs, Middle Market Lending Corp. or MMLC. These non-GAAP measures remove the purchase discount amortization impacts from our financial results.

這樣做的目的是使公司的財務表現更容易與 2020 年 10 月與高盛、中間市場貸款公司 (MMLC) 合併之前的業績進行比較。這些非公認會計準則措施消除了購買折扣攤銷對我們財務表現的影響。

For the first quarter, GAAP and adjusted after-tax net investment income was $60.8 million and $59.5 million respectively, as compared to 61.8 million and $60.7 million, respectively, in the prior quarter. On a per-share basis, GAAP net investment income was $0.55, excluding the impact of asset acquisition accounting in connection with the merger with MMLC, adjusted net investment income for the quarter was $0.54 per share equating to an annualized net investment income yield on book value of 14.8%.

第一季度，公認會計準則和調整後稅後淨投資收益分別為 6,080 萬美元和 5,950 萬美元，而上一季分別為 6,180 萬美元和 6,070 萬美元。以每股計算，GAAP 淨投資收益為 0.55 美元，不包括與 MMLC 合併相關的資產收購會計的影響，本季調整後的淨投資收益為每股 0.54 美元，相當於帳面年化淨投資收益收益率值為14.8%。

Total investment income for the three months ended March 31, 2024 and December 31, 2023 was $111.5 million and $115.4 million, respectively. The decrease in total investment income was primarily driven by a decrease in accelerated accretion of upfront loan origination fees and on amortized discounts.

截至2024年3月31日和2023年12月31日的三個月的總投資收入分別為1.115億美元和1.154億美元。總投資收入的下降主要是由於預付貸款發放費用和攤銷折扣的加速增加減少所致。

We would note, however, that we did see an increase in PIK income as a percentage of total investment income, primarily driven by the restructuring of certain investments. Distributions during the quarter remained consistent at $0.45 per share. Our spillover taxable income is approximately $128.9 million or $1.15 on a per-share basis, which we believe provides continued stability on our consistent dividend since inception.

然而，我們要指出的是，我們確實看到 PIK 收入佔總投資收入的百分比增加，這主要是由某些投資的重組所推動的。本季的股利維持在每股 0.45 美元。我們的溢出應稅收入約為 1.289 億美元，即每股 1.15 美元，我們相信這為我們自成立以來的持續股息提供了持續的穩定性。

With that, I'll turn it back to Alex for closing remarks.

至此，我將把它轉回給亞歷克斯做結束語。

Thanks, Dan, and thanks, everyone, for joining our earnings call. We remain optimistic about the performance of our portfolio, the current environment and the outlook for deployment into attractive opportunities.

謝謝丹，謝謝大家參加我們的財報電話會議。我們對投資組合的表現、當前環境以及部署到有吸引力的機會的前景保持樂觀。

With that, let's open the line for Q&A.

接下來，讓我們打開問答熱線。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Mark Hughes, Truist.

馬克‧休斯，真理主義者。

Yes, hello. This is Mark Hughes. Can you hear me?

是的你好。這是馬克·休斯。你聽得到我嗎？

Yes, good morning.

是的，早安。

Good morning, Alex. You referred to a pickup in activity in the pipeline. I didn't quite get your full, meaning I just didn't hear you I repeat that what you are alluding to is that to just a pipeline of new deal opportunities?

早安，亞歷克斯。您提到了管道中活動的增加。我沒有完全聽懂你的意思，這意味著我只是沒有聽到你的聲音。

Yeah, just the pipeline new up to nice has really picked up materially and I think it just points to the themes that we've been talking about, which is the significant amount of dry powder that private equity firms have that they will need to deploy but also the record amount of portfolio companies that need to get sold due to the TPI pressure that firms have, especially if they want to raise, they're next vintage of funds.

是的，只是新到尼斯的管道確實有了實質性的進展，我認為這只是指出了我們一直在討論的主題，即私募股權公司擁有需要部署的大量乾粉而且由於公司面臨的TPI 壓力，需要出售的投資組合公司數量創歷史新高，特別是如果他們想籌集資金，他們就是下一個基金時期。

And so that's leading to a pickup in activity in the first quarter as you can see, we had a very strong quarter of originations, actually more than the previous two quarters combined. And then if you saw our pipeline activity for the second quarter, it remains at significantly higher levels. And so we remain quite optimistic about deployment activity also just I think sponsors are just trying to get ahead of the election and some of the volatility that can come. So we are again, just expecting a quite busy quarter.

因此，這導致第一季的活動增加，正如您所看到的，我們有一個非常強勁的季度發起活動，實際上比前兩個季度的總和還要多。然後，如果您看到我們第二季的管道活動，它仍然處於明顯較高的水平。因此，我們對部署活動仍然非常樂觀，我認為贊助商只是想在選舉和可能出現的一些波動之前做好準備。所以我們再次期待一個非常繁忙的季度。

Yeah, you talk about what you're saying. You talked about a strong rebound in the broadly syndicated market and any prognostications about where equilibrium will end up in between direct lenders and broadly syndicated and are we there yet, when will we get to kind of, again, more of an equilibrium in share?

是啊，你就說說你說的。您談到了廣泛銀團市場的強勁反彈，以及對直接貸方和廣泛銀團之間最終將達到平衡的任何預測，我們是否已經達到平衡，我們何時才能再次達到份額平衡？

Yeah, it's a good question. It's hard to sit here and call it bottom right now. It's certainly, to your point, really determined by the supply demand imbalance, which again, just based upon the earlier comments about the pipeline activity really picking up. And I think it's -- I think most direct lenders are seeing that across the board.

是的，這是一個好問題。現在很難坐在這裡稱其為底部。就您的觀點而言，這確實是由供需失衡決定的，而這又是基於先前有關管道活動真正回升的評論。我認為大多數直接貸款機構都全面地看到了這一點。

And so that should really help us even out the supply-demand imbalance and also remember that for GSBD, which continues to be focused more on the middle market, and that's not really an ecosystem where the banks play and with the BSL market plays and so I think you're going to see more of that in the large cap sector.

因此，這應該真正幫助我們平衡供需失衡，同時也要記住，對於 GSBD 來說，它繼續更專注於中間市場，這並不是銀行和 BSL 市場參與的真正生態系統，所以我認為你會在大盤股領域看到更多這樣的情況。

And so we're clearly seeing that on the large-cap side of our platform. But for the middle market is continuing to stay steadier.

因此，我們在我們平台的大盤股方面清楚地看到了這一點。但中端市場持續保持穩定。

And then any commentary of it sounds like interest coverage is reasonably stable down at the tail to the number of companies that are at one or below. I don't know if you've shared that, but would be curious what you're seeing any kind of stress in the portfolio?

然後，任何對此的評論聽起來都像是利息覆蓋率在尾部相對穩定地下降到 1 或更低的公司數量。我不知道你是否分享過這一點，但我想知道你在投資組合中看到了什麼壓力？

Yeah, we haven't reported the percentage before, but it remains very stable. It has not ticked up and again, it's a very small percentage, single digit percentage of our portfolio.

是的，我們之前沒有報告過這個百分比，但它仍然非常穩定。它並沒有上升，而且它只占我們投資組合的一個非常小的百分比，個位數百分比。

Understood. Thank you.

明白了。謝謝。

Thank you.

謝謝。

Sean-Paul Adams, Raymond James.

肖恩·保羅·亞當斯，雷蒙德·詹姆斯。

Hey guys, can you hear me?

嘿夥計們，你聽得到我說話嗎？

Yes, can hear you.

是的，能聽到你的聲音。

Perfect. On the portfolio risk side, the categories, it looks like you had a downtick in category four, but in aggregate the share of total category three and four of the portfolio went up. Can you talk a little bit more about the general health of the portfolio? It looks like in aggregate the portfolio is just shifting up the ladder a little bit.

完美的。在投資組合風險方面，類別方面，第四類風險似乎有所下降，但總體而言，投資組合第三類和第四類的份額有所上升。能多談談投資組合的整體健康狀況嗎？總的來說，投資組合似乎只是稍微向上移動了一點。

I mean, I would say overall, it's relatively stable. As you heard, we saw a couple of names come off nonaccrual, which we're pleased with this quarter. Names will kind of flow between two and three depending on performance -- from a mid -- we kind of look at it from how many material amendments we have this quarter, i would say that was actually down quarter over quarter. So we feel relatively good about the stability of the portfolio as we look forward to the rest of the year.

我的意思是，總體而言，它是相對穩定的。正如您所聽到的，我們看到有幾個名字不再是應計費用，我們對此季度感到滿意。根據業績，名稱將在兩到三個之間流動——從中期開始——我們從本季度有多少實質性修改來看待它，我想說實際上是逐季下降。因此，在展望今年剩餘時間的同時，我們對投資組合的穩定性感覺相對良好。

Got it. Thank you.

知道了。謝謝。

(Operator Instructions) And there are no other questions in the queue at this time.

（操作員說明） 此時隊列中沒有其他問題。

Great. Well, thank you very much for listening in our earnings call, and we look forward to continuing to do deploy into this very attractive environment. Thank you.

偉大的。非常感謝您收聽我們的財報電話會議，我們期待繼續在這個非常有吸引力的環境中部署。謝謝。

And that does conclude today's call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。