GBDC - Golub Capital: 11% Yield And Upside Related To Merger Transaction
2024-06-12 09:59:35 ET
Summary
- The merger between Golub Capital BDC and Golub Capital BDC 3 creates a larger investment company with lower costs and growth potential.
- Golub Capital maintains a distinct first lien strategy, with the majority of investments in traditional first lien originations.
- Golub Capital said it will lower incentive fees, which are set to add to the BDC's NII.
- Solid distribution coverage and reasonable valuation make GBDC an attractive investment option for dividend investors.
Golub Capital ( GBDC ) recently announced that it was merging with Golub Capital BDC 3, which is set to create a larger, better-diversified investment company with lower costs and considerable long-term net investment income potential. The BDC’s shares are currently trading at a 4% premium to net asset value, which I believe is deserved considering how well Golub Capital supports its dividend with NII. In my opinion, Golub Capital has revaluation potential as investors are set to benefit from a large, variable rate investment portfolio as well as better opportunities for origination growth!...
Golub Capital: 11% Yield And Upside Related To Merger Transaction