Golub Capital BDC 4 unit signs $250 million six-year loan agreement

By William Gullotti

Buffalo, N.Y., April 1 – Golub Capital BDC 4, Inc., via subsidiary GBDC 4 Funding II LLC, entered into a $250 million loan financing and servicing agreement with Deutsche Bank AG, New York Branch as facility agent on March 28, according to an 8-K filing with the Securities and Exchange Commission.

The subsidiary is the borrower, with the parent company acting as equityholder and servicer.

The agreement functions as a revolver with a March 28, 2027 termination date, ultimately maturing three years after the revolving period terminates, unless earlier terminated.

Borrowings will bear currency-appropriate interest at SOFR, BBSW, Corra, Saron, Cibor, Euribor, Sonia, BKBM, Nibor or Stibor plus a 235 basis points margin prior to March 28, 2027. Afterwards, the margin steps up to 285 bps.

There is a 25 bps non-usage fee on the undrawn commitments, which may step up during the revolving period if borrowings do not exceed a minimum percentage utilization threshold.

If there is any permanent reduction in facility commitments during the first or second year after the effective date, there will be a prepayment fee of 50 bps or 25 bps added, respectively, to the amount of reduction.

Additionally, the company paid an undisclosed up-front commitment fee and agreed to pay an additional commitment fee on the first anniversary of the effective date, so long as the facility remains outstanding. Likewise, there is an undisclosed syndication/agent fee that is payable to the facility agent each quarter.

The facility is secured by all of the assets held by the borrower.

Deutsche Bank National Trust Co. is the collateral agent and collateral custodian.

Golub is an externally managed, non-diversified closed-end management investment company based in New York.

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