Golub Capital BDC (GBDC) 6 Feb 242024 Q1 Earnings call transcript

Hello, everyone, and welcome to GBDC's Earnings Call for the fiscal quarter ended December 31, 2023.

Before we begin, I'd like to take a moment to remind our listeners that remarks made during this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in GBDC's SEC filings.

For materials we intend to refer to on today's earnings call, please visit the Investor Resources tab of the homepage of our website, which is www.golubcapitalbdc.com, and click on the Events Presentations link.

also our is Investor in release section. Resources earnings available website on the Our

this being Golub, call pleased reminder, a As is the of over Officer to recorded. With call to Executive David Chief GBDC. turn I'm that,

everybody, us thanks joining Hello, and today. for

Ericson, Chris and CFO; Officer. by Chief Matt joined our Operating our I'm Benton,

during the that healthy focus new press secured For quarter companies It's inception since in posted an to finally, call usual and today with our XX, stable per quarter on are corresponds let our on annualized equity to private previous for $X.XX, corresponds our detail. per first review by were It GBDC's senior to resilient XXXX an to adjusted tied lien providing adjusted filed those share performance quarter equity sponsors. Yesterday, strong. to We partnership-oriented a for highest of in earnings of to period fiscal share middle-market was credit on the XX.X% headline $X.XX That on saw start that to is call. of ratings. return unrealized results very in was we are presentation strong release realized January talk company's website. We and defaults. but the And a results company Q&A. The $X.XX. fiscal with percentage and that per coming all up had first backed GBDC XX. Adjusted you of quickly for overall Matt we low share, go and referring saw on me going then We'll I'll loans the with about in outlook internal an new performance an going the an came We annualized with results presentation issued on this and ended the and and net we has Chris quarter. summary investment XX.X% the later this as some with earnings these decrease earnings today. I'm are ever was GBDC, saw who equity a We'll basis. to our line more for excellent an for share. the for the in were an of strategy. on small return be had net NII what been income investment and already more through loss the of right quarter basis. Adjusted per for December QX detail NII adjusted wrap of headlines with nonaccruals, results to an financial no X quarter,

to NAV quarter-over-quarter per share of as Finally, $X.XX $XX.XX increased XX. December by

and more quarter, even excited To your While first customary it results the GBDC we're approvals into has made or the that subject Golub closing the with BDC strategic recollection, a call Inc. definitive conditions. GBDC for what GBDC's fiscal announced we're announcements we GBDC surviving Capital to proud about earnings we certain prerelease. company, refresh as first, agreement with connection X X, merger X with entered in of stockholder the

reduce reduction with in the gain XXXX, incentive XX% of The it Second, merger. the the and upon effect fees be of become incentive permanent as in fee proposed merger was effective X, merger. capital incentive pendency XX% proposed to that during will and made the investment income in closing will agreed GBDC's of adviser January of connection GBDC's in fee to from support and

cap, BDCs. I'd XXXX. and cumulative exciting X% to to fee GBDC are With XX% an rate we standard presentation the this hurdle new July You'll a publicly floor company's incentive you fee, has incentive look X, effective at from walk X.XXX% in management recall investment announced X% that fee, to for the that, let adviser fee reduction we GBDC's the through gold GBDC's set and on Matt results permanent a previously a X% think and to announcements important. With management believe of to the a since hand investor these traded base learn for the so encourage more more me alignment shareholder detail. website among about why our quarter inception

start going David. to Thanks, Slide X. I'm on

share David was ever. for GBDC's adjusted the September ROE or year-over-year ROE NII ended highest share as per per December per to were an share XX Adjusted adjusted NII the just corresponding share an earnings quarter XX, previewed, of to NII of $X.XX, tied driven quarter GBDC's quarter XX.X%. fiscal XXXX, increased As Compared profitability QX XX.X%. Adjusted strong factors. of $X.XX, XXXX excellent. about XX%. Adjusted with earnings $X.XX corresponding this was NII was GBDC's X adjusted by GBDC's to per by was

First and in more foremost, strong moment. go a this performance. credit I'll detail into on

due generally [ quarter. consistent management expenses the rates continuation of July reduction GBDC's funds declined balance sequentially. X/XX rate, in the updates quarters. third, reflect $XX.X from fee effect And base to took sustainably Net million prior trends XXXX. The by portfolio which sheet with Second, high base lower ] of in the

remain the or investments pace While depend the fee GBDC's design. market-wide calendar GBDC's uptick we This rest strong. deal from investment an of of on performance credit by of returns. The overall repayments originations saw activity also new QX in drive XXXX, remains measured. to income portfolio doesn't was in model to relative GBDC's strong

we First, in nonaccruals. a saw reduction

total of decreased to fair percentage a non-accruals As X.X% value, X.X% from investments at XX/XX/XXXX at X/XX/XXXX. debt at

per represented to even gradually X.XXx leverage GBDC consistent shareholders basis lower. modestly XXX during X.XXx. debt-to-equity total categories at to points share increased to the NAV Net value. higher sequential leverage. or per distributions X Investments of than NAV fair strong. portfolio leverage than a by with performance $X.XX on financial to basis the to share to XX $XX.XX. internal Second, remained period. And This prior and X rating now year, delivered this more ratings as plan turning higher declined our points basis is in is reduce

supplemental share Let's approved turn share. fiscal per The and a of distributions to per share of per regular now. $X.XX QX distribution quarterly our of distributions, $X.XX $X.XX Board distribution

Taken NAV together, XX.X% GBDC's per dividend annualized XXXX. December of XX, to an correspond share as yield of these based distributions on

distribution variable XXX% the per quarterly company's As on based $X.XX conjunction announced share. The proposed the the fee. Adjusted a distribution coverage supplemental resulting quarterly in per company's per authorized reduction distribution of $X.XX distribution also share that $X.XX framework. regular regular quarterly the a of $X.XX with in increased of share reminder, announcement distribution per a corresponding on regular we've the increased and NII ratio from significantly share distribution, Board previously and incentive supplemental the share to company's per exceeded merger Board

plan how one our understand will on that You'll recall NAV the on in hand, was on that GBDC hand. focus growth XXXX to all to the likelihood help to the balance introduced with and other continue equal generate resilience the excess framework shareholders we else income,

payment can You record distribution presentation, XX. distributions find more information and the Page fiscal Page framework on dates the about of for XX earnings and about on the dates QX variable supplemental

increased GBDC on fee to power impact in much lower go expected that fiscal has Before rate want see base a as don't I reflect for rates of going through incentive Chris the forward. lower lower the strong to earnings of GBDC's fee have how fee detail, the do I is QX incentive rates. much we incremental up management analysis results The hand emphasize to result quantifies GBDC's yet how quarter and X Slide to its earnings from already expect power to

adjusted pro base have the to if results right XX, share XXXX from $X.XX, the $X.XX June NII instead you an fee estimate XX, XXXX, XX see $X.XX points GBC's quarter earnings XX%. We December can fee X%. basis GBDC's of rates NII forma management pro and of per were shows increase XXXX XX, column for adjusted per share columns, would comparing lower column by quarterly. The XXXX accretion approximately in to or As ROAE the December drove of September $X.XX its increased representing rates with incentive XX% about ended as forma XX,

GBDC's $X.XX fee This basis of equal, So to to $X.XX ROAE. rates adjusted by or to increase NII incremental annually. $X.XX approximately all per XX expect incentive about points per quarter going NII share adjusted about else we forward translates lower

You'll while the XXXX, in voluntarily for fees results GBDC's QX. GC pending. incentive Advisors incremental January fiscal remains effective this see weighting is power X, to XX% merger potential earnings in start excess of

it Assuming fee earnings over be to the from turn incentive will to now rate forward. I'm our detail and merger closes, the reductions become on GBDC Chris benefit more will results. provide set to power going going prominently permanent higher to

Matt. Thanks,

X. Slide to Turning

NII adjusted paid from see low-cost share, dividends share spreads the out a described share. You drivers rates, matching short-term leverage last into interest The translated combination quarter, the high meaningfully record credit of just and level per GBDC's Matt $X.XX of and than growth higher resulted level a how during profile earnings in attractive quarter. can NAV per key per

In position $X.XX increase per per quarter. Together, the realized $XX.XX, net net up the during an quarter. net unrealized exit net of of quarter these whereas addition, drove results drove $X.XX per of $X.XX a in value share, adjusted prior share the gain losses during per share unrealized and to realized resulted asset share equity modest a losses the from

$XX.X in funds our exits ratio investments. million remain Market-wide XX, financial the part level leverage of reduce which measured quarter through X.XXx improved origination growth GBDC's both and outpaced quarter, or origination dollar Slide loan delayed now summarizes start December We'll draw go the Let's plan the new GBDC's impact the as decreased for of on investment XXXX. origination GBDC's by our sales and activity of and for of by while quarter-over-quarter debt-to-equity activity were ended December fundings XX of net to quarter. Net lower. approximately term capital's details results of activity the to XX, deal commitments as activity

our lower to calendar may shown closing year first. Golub new rate the We typical in half to second in the mix to of on the reflects be during expect of the activity calendar loans. to has though remained as slide one-stop middle approximately remain predominantly selective, selectivity reviewed more in X% our of over the and highly investments opposed X% this deal focus continue quantity. The quality asset Capital the X% That's XXXX. XXXX, of end deals on case of improve

decrease since spreads are by in bottom this was The portfolio by tightened the points the This Spreads slide, they're new of which what the XX basis average points consistent decreased at is overall XX investments, primarily generally seeing Looking to on tightened but rate quarter. relatively GBDC's with mix. on on due attractive. Slide the tighter basis transactions sequentially. we shows XXXX, new have earlier in new investments market. still XX weighted

GBDC's that investment to the diversified one-stop shows with portfolio XX% As quarter-over-quarter, with size portfolio you consistent average fair by highly remained continuing investment can see, approximately remains of loans the an Obligor, points. around XX portfolio type value. Slide at breakdown by of represent XX basis

we and are in of in risk well GBDC served big credit future modulating to the continue believers We will be size, credit important believe context cycles. position which in credit previous has cycles through

senior our quarter-over-quarter lien December borrowers loans XX, what investment of consisted range secured XXXX, analysis believe As a Slide first resilient floating little of diversified economic of rate portfolio industries. The we show to change. XX% of across on be XX to

Let's walk the highlights. through

with the our start investment dark which Let's line, income blue is yield.

out rates, XX a basis, quarters, amortization has on to of investment interest sequential modestly up increasing discounts. base leveled yield recent income the basis investment XX.X%. yield the income GBDC's points Consistent fees includes reminder, As a with and in

modestly the debt, And by the to spread, of turn weighted increased line, back basis now net slightly investment the with points by average will Our I [ floor X.X%. And XX over the a blue our as declined XX prior over ] line, quarter Matt. that, result, to gold cost points. basis

Thanks, Chris.

and see quality as can on XX, XX to remains solid at XX the XXXX. Slide decreased ] The sequentially quarter Slide since a ratings and investments value. at Slides portfolio fair is XX of move look GBDC's status in This take of debt stable. that closer by nonaccruals X Let's total December metrics. The punchline [ represents trend investments. remained nonaccrual the basis number XX/XX/XXXX. company performance XX a the points On continuation internal decreased and consistently credit has this investments credit XX, ended X.X% to you of on of level trend on as shows at

are believe significant X at points of impairments, X they're we most credit the very at are fair as to mostly the XX, see X, expected low which underwriting. XX% at were X, or As rated than of basis loans rated expected decreased of of investments XX loans value. The XX.X%. X of likely portfolio loans proportion December remain to The XXXX, means around performing better and which proportion GBDC's or rated

financial As key do, more detail GBDC's to reviewing capacity past and on have skip other statements, GBDC's history investment section slides we this we're metrics. I'm through by up to usually XX. on These and XX going wrap and XX liquidity going dividend Slide XX. Slide

focus on XX. takeaways let's key the First, Slide on

average weighted did notes due fixed the XXXX, issued maturities in exposure. lowest and average in X.X%. coming cost of Our the among in them XXXX. The the through XXXX X.X%, laddered any is group. XXXX for unsecured [indiscernible] floating ranging was which were a And we not for of quarter prior XX% XXXX as of is weighted of heard rate coupon our debt occasions, of debt we from you've funding with with our believe out we in said notes, peer form rate

and respect $XXX issuances markets a continuing term improve debt addressing of of company end, to million in XXXX, XX% I December figure issued to term million with XXXXs a $XXX X%. and GBDC first we the During of since GBDC's debt with new XXXX the maturity with for while investment-grade $XXX coupon maturing in XXXX. them fixed stated debt the mentioned fixed X.XX%. Subsequent million market returned quarter risk the the coupon of the portfolio July upon quarter earlier, quarter, investment-grade post were XXXX maturity stated included of not notes investments end. Both refinancing April given a and ladder with with to support These again X.X-year accessed additional maturity X-year time an issuance, the GBDC a issuance

is liquidity portfolio, believe of on with In view swap secured forward a equivalent in toward ran weighted unrestricted average liquidity meaningfully asset We which element entered by an revolver the greatly unsecured rate on unfunded represents highly GBDC's our strong the our a interest curve The from match rate more and of overcollateralized its flexibility is liquidity advisor. GBDC's revolver cash, The XXXXs borrowing position of XXXXs. and low points, ended our cost quarter commitments. floating provided robust context unused the XXXX undrawn and important a corporate ratings and our investment SOFR Fitch, funding funding X.Xx cost issuance. our attractive commitments our of more diversification, is billion rated predominantly and Moody's our plus the current we rate structure enhanced of S&P. GBDC floating X an by the addition, has the $X.X half markets. grade than deeper provided Moody's notes of XXX differentiated debt majority investment from to relative is new basis underpins that BDC versus sector of we and for cost-effective unsecured December and the ratings for with funds costs. Overall, a profile the Fitch that all and access to

remarks back over Now David and I'll for it Q&A. closing hand to

always Thanks, credit the first long-term and started performance Matt. excellent GBDC were foremost. XXXX GBDC's lower down comes year an fees To sum help, results up, credit with quarter. key fiscal Higher rates and Strong driver. but first to

the most the didn't the year investors recession. headed perspective, I'll for the XXXX. and recession. questions. calendar The view set Let look wrap economists with at expected. then year get wasn't outlook, start up at line to of XXXX helpful that open we consensus towards stage, was we our year the To it's a From back a macro me of But that a were

but we transitory, neither. Inflation be be goes then boom. created a over last supposed again pretty robust was views COVID and to the theme. over but to got X consensus it's have supposed we be it got consensus it and fact, between out In actual a recurring in was growth. This expectations outcomes, to and become divergence turned stubborn, years. was The depression, a wrong to

of think this wars, and predicting period, stay pattern, X Given about coming to we the important the particularly humble given economy it's course the polarized of elections. upcoming the in politics backdrop

to And credit frame So seeing think I'm and that areas: in tailwinds terms X specific headwinds, headwinds predictions. we're and going key of in deal to and of I in context, like terms activity. this of in outlook making tailwinds our the instead

Report Market stronger published credit ago, performance whole. for unemployment, we encouraging. which companies growth job talk few calendar levels, solid this robust moderating generally XXXX the QX, and Middle it. One margins. data a Economic weeks Capital me than low Recent Capital is Let's stronger Golub with for economy was inflation. and Will in Golub also for a It about expected. as shows was tailwind is showed momentum. normal inventory economic growth It credit. Let start solid growth The in continue?

is this private tailwind of model our business to investments election general for polarized private presidential particularly private make The think well Another valuable. About equities businesses, true by this headwinds. X growth. adapting of the have for is future that, type pave particularly meaningful uncertainty, in the and be to challenging that businesses view, firms. to businesses a We make wars is the it one including environment appear In harder the of sort to way big is businesses environment. is equity equity-backed where confidence owned

I unlikely case that as have expect general, companies the that are well. headwinds, key well XXXX. scenario to that is to about along. to so easier will my think tailwinds do I and have adapted find sledding to base companies far, balancing continue expect struggled likely economic in probably an that So in level I growth they're adapt, these

more term. private cautious we of XXXX. can X bank agree lot equity deal the but terms of heard making, volume short in I'm accelerate. I saw the term, calendar to a predict of In about in CEOs quarters trends relative a the improvement QX first in for medium these deal outlook that big the we've And

spend pick reason QX in maybe new investment for equity are fund, distributions going to They private to of lot we're this, amounts to is raise and likely equity in up money out period. There's that get is the ticking. there have to I a commitments or need their they're not run the raise quite out they of my to and they get or XXXX, think need more see want meaningful to of QX. The if that where money. going of they're private firms optimism hearing from investors but a that second it's unspent M&A sponsors going activity group that loud clock a clear and in want

experience, group going of to owners Tax since group of getting way taxes am and course year we're more a to make the got Jobs a of activity we've political We're to any a it transactions. the prospect of Cuts this going if the got in So is for buyers, And on not to I M&A mind, and predictions, in of and In expire a going focus improves. There's makes more and to more in question but sponsors motivated an our hear has rates a tax sellers. over bet deal we've of XXXX. motivated catalyst and the second that of higher when rhetoric that's improvement about activity, Act sort set taxes. and likely not business

let very for speak think outlook. coming the in to last exciting be one GBDC. Finally, going is point We about our me period

earnings than up post-merger you with increased ever, GBDC we GBDC and underpinned that, Assuming questions? line X benefit the please scale. With proposed operator, open quality, of the believe can fees the strong shareholder-aligned merger credit power have by very for will closes, higher

of the Raymond comes question from Instructions] with Robert [Operator James. Dodd first line Your

ultimately. On what to David, matters your credit think is point, I always

fundings existing had in spread, Certainly, So a like deployments quite there's involved gap in portfolio and quarter. drawdowns any of could follow-ons which that. over. on can your the It maybe be your on a all you between looks lot companies and repayments, you the give the color us

on in us patterns you any there relative during quarter? mix? anything those to unusual drawdowns can give the the And So was color prior

really It's anything for at GBDC, to credits. Roberts, moves Revolver that unusual we kind often is thanks revolver significantly. There of it be very volatile you tends But number look the when on for activity there's borrowers your drawdown cash on activity. a individual there's bit remarkably some XX question. of have companies in as I But think activity show to at terms fiscal of to end steady. of don't is to I of the balance anything ending year, don't to year choose sheet. anything think related cash is the drawing worry revolver unusual their be are December about or draws. revolver able in

easier the a at value only the the have that on there's a world an had year, think an buyers of because and buyers get been in look on agreement are have their difficulty question. special out through reaching price, been where calendar bit add-ons to are investments been last your you economics. percentage I unusually do ability, In than can. Those new have If of would high the have buying I sellers area where synergies, that's seller to They more say response things add-ons.

X Got it. the it. Got And then specifics. on

background I if [indiscernible], about into Elite the as on in come Even earnings. capital noise. from and you mean, [indiscernible], unrealized to Sorry so seem Dental markdowns the well. no both incremental on quarter impact both put nonaccrual, something most of your already

you you're can time? businesses your but us thoughts at about in process, those general, same if into maybe when it the talk putting on to to also capital you about down, specific you're additional wanted when the marking work-through So give those,

Sure.

in I think in sponsor. cases, be turnarounds. So contrast In in that to is to fact, to that keys time that the avoid some served an keys, well and we're what make ability step eager willing and take us banks to the to to, want really loans taking a over work

you at facto over we've of the companies do variety de often as we sponsor, quite in well look these that a companies. If taken

because of challenging working both issues challenging. that are They've been X operational mentioned on. you cases have challenging. Some we're The in been

you've adapting some ones that. that X in of struggling. has done not things my remarks I mentioned year X on. in we've which are been one to years one working been companies is or said but hard most have immune last been that this conditions, And think the prepared in well the We're I that, change to have market

of think them, successful both will challenging. they've on prove we been but I ultimately

mean, reduction, And also positive the just a very for significant comment, I fee just on shareholders.

So front. congratulations on that

of comes with Ryan next KBW. Lynch the line Your question from

credits, First industry was sort anything to concentration? curious little I given about frothy bit there loans, any I more started had, There far, some really categories X seen more in Or see BDCs that to I observed we look you little across your again, the rated and a with curious in which was when just portfolio? vintage rated exposure? good you of also bifurcation aren't obviously quality if to was been whether really a we that too, have your is sort good those overall, high credit, vintage question to those your -- quarter. I and was I curious, credit has portfolio do in this think, the thus started XXXX just portfolio. you wondering, guys X sort to in any of really conditions. at have of in started guys your maybe overall, investments, if trends it's I'm trends struggle just see

So first, Ryan, mentioned. I'd agree with the you just insight

I think the right several credit BDC and environment the be in an side results space. we're meaningful in starting quarters, And more to and last to divide. managers in very we're we're the of of different for proud the where have been dispersion now more good on see

to going see continue you're I think that dispersion. to

growth. to interest in and in higher period, in difficulty slower my rates, mentioned I economic cases, having think some prepared we're some remarks, as companies adapting I a where are

the of to And performance some BDCs in defaults, more nonaccruals, see low in challenged and proportion bump-ups starting bump-ups ratings so marks. credits, you're

the the going I reporting this cycles. likely think remainder cycle we're see very more next several of of going that reporting to into over and

rated to underwriting. a rated not X. X either everyone to more were credit seriously what perform and expected our our In what remind it is now credit that's terms rated credits, were a it performing it's It's or or of than impaired be would seriously expectations that's a credit. lower just level is, impaired, a in X If X at

that not from describe rather seeing they vintage industry. The improving. is or by are that is where with different the pattern by X that is were you underperformed, where a challenging patterns I I'm little pattern ones they're say or pattern, a hardest experience seen our we Our been -- time would have have have you I'd that that the were headed. having getting companies companies idiosyncratic.

are And this pattern winning which an are so. to are are my continuing that and continuing that environment losing is we're guess a do continue see. is to So in companies going to win that's that companies to

back providing or more Okay. debt opposite and makes increased lower maybe your willing with -- kind to lot motivations and because sellers, who comments they need motivated need a motivated wanting a capital, aggressive get think occur from sell pretty the would little and about to capital cushion. maybe that seller sellers with would buyer, just may may the their -- a I probably a be it price you and of structures, would to think pretty seller do deploy with buyers good really back to interesting because equity a multiple be That motivated and purchase you leverage not a LPs capital. they capital then the lot gives activity because both at return would hence, a in because And think purchase to trying in throughout one capital deal buyers return of to so they're year sense. that. I to deploy of increased I deal year, comments, to the made which the you deploying talking terms least prepared in was be of price, a motivated at the half the

-- in activity are opposite the curious, if be of deal X you maybe motivated lending quality from seems and of like majority due deals. vast would it year and structures mean sort to those given to of and just perspective second leverage the think So the sellers, pick of buyers terms half both that's what all I and do deals, in terms going a that? does up the

is of buyer are much I question, a on with. just good described. I'll it's you the to the remind focus And call many tend who than think that statistics So familiar we this more probably some Ryan. dynamics you on

XXX of private direct it's Capital's multiple XXXX, have over over last been XX%. In years Golub XX% calendar our transactions We with. we've the In lending equity that most history, over with firms XX, around repeat done sponsors, XX%. was

very we work careful with. about who we're So

good and if We sponsors adding we that about of picking they are they very buy lot mistake. the they have with they're They're good make a good good companies, what companies, a are good they're thoughtful after working at at things value fixing do. conviction at at

I is sponsor-focused in very So think model that much our respect.

Makes then I And if Okay. can. sense. more, one

the Chris, this on liabilities. you for just but did maybe Just on rate on guys swaps the is interest the and more --

kind thoughts sort market taking of advantage as just is kind the it advantage taking marketplace the who you conditions? your and more all rate You in guys matter fixed a swap, more are sort where of the guys curve the of Is one-off you floating rate? did current What that BDCs philosophy fix the all to out that of marketplace that they just rates is going floating. floating to Because as is sort are, swap of previous a of conditions that, there do that, well the long-term a there's time. Or a are current philosophy out short-term today unsecured base change out portion given that outlook? that certain the every or no forward of kind to the market what more and of something notes of fixed swapped from that behind of bonds, of

Chris, you let and in. me can chime start then

in philosophy funding. is match funding. that to believers stay We're we match So long-term predominantly want big

floating of we don't So bonds toward that swapped. floating everything have decision we rate we and we those not go from possibility rate we're do a was assets because unlikely want it did forecasting that thinking assets going that were risk the which and as make to because we so some rates interest be forecasting doing going levels, with And really, when that but We of quite interest we business. made down saw affirmative right, rates decision when be our that those the liabilities. We profile inclines an thought really for to us the see generalization, rate we to have have we using don't asymmetric up. We low, in our that unusual swap, is rates were saw don't an rates unsecured were to non-floating assets, please did so. use rate time us, vast and low at to preponderance are

sense. sell. me. as fee on one current reductions, well want for me. -- all comments A quarter, base Robert's the as That's That's guys done the the all well makes guys. big And for very definitely to That's done structure shareholders. boost with the just That really one you have nice reiterate with we I for both Okay. a

will at closing no Golub call are further [Operator I questions time. remarks. for this Instructions] There turn David to the

one everyone, you, for it's joining Great. which today. I Thank last you, us have request -- is Chris birthday. for Ericson's

a you great. And can you happy be talking next Chris quarter. forward birthday, wish that would if So to to look we

out. free feel please then, before reach questions any have to you If

for you thank We call. conference today's joining. concludes This

You may your now disconnect lines.