Golub Capital BDC, Inc. ("GBDC" or the "Company"), a business development company (NASDAQ:GBDC), today announced that the Company's Board of Directors approved a permanent reduction in the base management fee rate that the Company pays to its investment adviser, GC Advisors LLC, an affiliate of the Golub Capital LLC group of companies ("Golub Capital"). For additional analysis, please refer to Management Fee Reduction Announcement Presentation available on the Investor Resources link on the homepage of the Company's website () under Events/Presentations.

The base management fee rate was reduced from 1.375% per annum to 1.0% per annum, in both cases based on the Company's average adjusted gross assets at the end of the two most recently completed calendar quarters, excluding cash and cash equivalents, and including assets purchased with borrowed funds. All other terms of the Company's Investment Advisory Agreement with its investment adviser remain unchanged. The new base management fee rate takes effect as of July 1, 2023.

"GBDC has sought to raise the bar for shareholder alignment in the BDC industry since its IPO in April 2010," said David Golub, Chief Executive Officer of the Company. "GBDC pioneered the cumulative incentive fee cap, which set the standard for aligning BDCs and investment advisers on long-term credit performance. Today's announcement reflects Golub Capital's ongoing commitment to aligning with GBDC's shareholders on the goal of long-term shared success."

The Company estimated that the new base management fee rate would increase GBDC's pro forma adjusted net investment income per share by approximately $0.10 per annum, or approximately 0.7% on adjusted net investment income return on equity per annum1,2.

"GBDC's robust growth since its IPO has generated efficiencies for the Company's investment adviser, and today's announcement means that more of those efficiencies will be shared with GBDC shareholders," said Matthew Benton, Chief Operating Officer of the Company. "We believe the lower base management fee rate enhances GBDC's fundamental earnings power across a range of market cycles and economic conditions."

1. See accompanying presentation titled "Golub Capital BDC, Inc. – Announces Management Fee Reduction" and the slide titled "Endnotes – Non-GAAP Financial Measures" for footnotes.
   1. Return on equity represents the return on average equity, calculated as the adjusted net investment income per share divided by the average net asset value per share as of quarter end for the two most recently completed quarters, and annualized by multiplying by four.