Golub Capital BDC 4 Boosts Debt Securitization to $1.15B

TL;DR

**GBDC 4 is aggressively leveraging up with new credit facilities and a massive securitization, signaling a bullish stance on middle-market lending despite increased competition.**

AI Summary

Golub Capital BDC 4, Inc. (GBDC 4) is an externally managed, non-diversified BDC focused on generating current income and capital appreciation by investing primarily in senior secured and one-stop loans to U.S. middle-market companies. As of September 30, 2025, there was no established public market for its common stock, with 71,496,901.607 shares outstanding as of November 21, 2025. The company completed a $1,154.9 million term debt securitization on June 20, 2025, issuing $799.3 million in notes, including $667.0 million of Class A-1 Senior Secured Floating Rate Notes (SOFR plus 1.63%). GBDC 4 also manages significant credit facilities, including a $300.0 million DB Credit Facility with Deutsche Bank and a $750.0 million BNP Credit Facility with BNP Paribas, both active as of September 30, 2025. The PNC Facility, which allowed for borrowing up to $100.0 million, was terminated on June 30, 2025. The company's investment adviser, GC Advisors, benefits from a base management fee based on average-adjusted gross assets, including leverage, and an incentive fee tied to capital gains, creating potential conflicts of interest. Golub Capital, the broader entity, had over $85.0 billion of capital under management as of October 1, 2025.

Why It Matters

Golub Capital BDC 4's significant debt securitization of $1.15 billion and its substantial credit facilities with Deutsche Bank ($300 million) and BNP Paribas ($750 million) demonstrate its aggressive capital deployment strategy in the middle-market lending space. This expansion allows GBDC 4 to increase its investment capacity, potentially leading to higher returns for its private placement investors, but also exposes them to increased leverage risk. The termination of the $100 million PNC Facility suggests a strategic shift in its financing partners. For the broader market, GBDC 4's activities highlight the continued robust demand for private credit in the U.S. middle market, intensifying competition among lenders like Golub Capital and other BDCs.

Risk Assessment

Risk Level: medium — The company's reliance on significant leverage, including the $1,154.9 million debt securitization and revolving credit facilities totaling $1.05 billion (DB Credit Facility and BNP Credit Facility), introduces substantial financial risk. The base management fee structure, based on average-adjusted gross assets (including leverage), incentivizes GC Advisors to incur debt, potentially increasing risk for investors. Additionally, the company invests in below-investment-grade securities, which have 'predominantly speculative characteristics' and floating interest rates, increasing sensitivity to interest rate fluctuations.

Analyst Insight

Investors should closely monitor GBDC 4's portfolio performance and credit quality, especially given its significant leverage and investments in speculative-grade loans. Evaluate the impact of rising interest rates on its floating-rate debt investments and the cost of its own floating-rate liabilities. Given the private placement nature, potential investors should conduct thorough due diligence on the underlying loan portfolio and the adviser's compensation structure.

Financial Highlights

debt To Equity

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revenue

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operating Margin

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total Assets

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total Debt

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net Income

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eps

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gross Margin

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cash Position

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revenue Growth

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Key Numbers

• $1,154.9 million — 2025 Debt Securitization (Completed on June 20, 2025, issuing $799.3 million in notes.)
• $799.3 million — 2025 Notes issued (Part of the 2025 Debt Securitization, including $667.0 million of Class A-1 Senior Secured Floating Rate Notes.)
• $300.0 million — DB Credit Facility (Revolving credit facility with Deutsche Bank as of September 30, 2025.)
• $750.0 million — BNP Credit Facility (Revolving credit facility with BNP Paribas as of September 30, 2025.)
• 71,496,901.607 — Shares outstanding (As of November 21, 2025, with no public market.)
• $85.0 billion — Golub Capital's capital under management (As of October 1, 2025, indicating significant scale.)

Key Players & Entities

• Golub Capital BDC 4, Inc. (company) — Registrant
• GC Advisors LLC (company) — investment adviser
• Golub Capital LLC (company) — Administrator and affiliate of GC Advisors
• Deutsche Bank (company) — lender for DB Credit Facility
• BNP Paribas (company) — lender for BNP Credit Facility
• PNC Bank (company) — former lender for PNC Facility
• Lawrence E. Golub (person) — chief executive officer of GC Advisors and interested director
• David B. Golub (person) — chairman, president and chief executive officer
• $1,154.9 million (dollar_amount) — 2025 Debt Securitization amount
• $85.0 billion (dollar_amount) — Golub Capital's capital under management as of October 1, 2025

FAQ

Risk Factors

• Leverage and Debt Obligations [high — financial]: GBDC 4 utilizes significant leverage, including a $1,154.9 million term debt securitization and substantial credit facilities like the $750.0 million BNP Credit Facility and $300.0 million DB Credit Facility. High levels of debt increase the risk of financial distress and can amplify losses.
• Interest Rate Sensitivity [medium — market]: A significant portion of GBDC 4's debt, such as the $667.0 million Class A-1 Senior Secured Floating Rate Notes (SOFR plus 1.63%), is subject to floating interest rates. Changes in interest rates, particularly increases in SOFR, can materially impact interest expense and net investment income.
• Reliance on Investment Adviser [medium — operational]: The company is externally managed by GC Advisors, which benefits from a base management fee on average-adjusted gross assets and an incentive fee tied to capital gains. This structure can create potential conflicts of interest between the adviser and shareholders.
• Middle-Market Investment Focus [medium — market]: GBDC 4's strategy focuses on U.S. middle-market companies, generally defined as those with EBITDA less than $100.0 million. This segment can be more susceptible to economic downturns and may have less liquidity than larger, more established companies.
• BDC and RIC Regulation [low — regulatory]: As a BDC and a RIC, GBDC 4 is subject to specific regulatory requirements under the 1940 Act and the Internal Revenue Code. Failure to comply with these regulations could result in penalties or loss of BDC/RIC status.
• Credit Risk of Portfolio Investments [high — financial]: The company's primary investments are senior secured and one-stop loans to middle-market companies. The creditworthiness of these borrowers is subject to various economic and business risks, and defaults could lead to significant investment losses.

Industry Context

Golub Capital BDC 4, Inc. operates within the specialized business development company (BDC) sector, which focuses on providing debt and equity capital to U.S. middle-market companies. This sector is characterized by its reliance on experienced investment advisors, like GC Advisors, which manages over $85.0 billion in capital. The industry trend is towards flexible financing solutions, such as one-stop or unitranche loans, and partnerships with private equity sponsors. Competition is significant, with BDCs vying for attractive investment opportunities in a segment that can be sensitive to economic cycles.

Regulatory Implications

As a BDC and a RIC, GBDC 4 must adhere to strict regulatory frameworks under the 1940 Act and U.S. tax laws. These regulations dictate capital structure, investment policies, and distribution requirements, impacting operational flexibility and profitability. Compliance is critical to maintain its status and avoid penalties.

What Investors Should Do

1. Monitor leverage levels and debt covenants.
2. Assess interest rate sensitivity.
3. Evaluate the impact of the investment advisory agreement.
4. Analyze the credit quality of the loan portfolio.

Key Dates

• 2025-06-20: Completed $1,154.9 million term debt securitization — Secured significant funding through debt issuance, including $799.3 million in notes, to support investment activities.
• 2025-06-30: Terminated PNC Facility — Exited a $100.0 million credit facility, potentially restructuring or consolidating debt arrangements.
• 2025-09-30: Active credit facilities reported — Maintained access to substantial credit lines, including a $300.0 million DB Credit Facility and a $750.0 million BNP Credit Facility, crucial for liquidity and investment capacity.
• 2025-10-01: Golub Capital reached $85.0 billion in capital under management — Indicates the scale and resources of the investment adviser, Golub Capital, which GBDC 4 leverages for its investment strategy.
• 2025-11-21: Reported 71,496,901.607 shares outstanding — Provides a key metric for share count, though the lack of a public market for the stock is noted.

Glossary

Business Development Company (BDC)

A type of closed-end investment company that invests in small and medium-sized businesses with the goal of providing capital and expertise to help them grow. (GBDC 4 is structured and regulated as a BDC, impacting its investment strategy and regulatory compliance.)

Regulated Investment Company (RIC)

A U.S. tax term for a company that qualifies to be taxed as a mutual fund or a similar investment vehicle, allowing it to pass through income and capital gains to shareholders without being taxed at the corporate level. (GBDC 4 has elected RIC status, which affects its tax obligations and distribution requirements.)

One Stop Loan

A loan that combines characteristics of first lien senior secured loans and second lien or subordinated loans, often referred to as unitranche loans by other lenders. (This is a primary investment type for GBDC 4, indicating a focus on flexible debt structures in the middle market.)

Middle-Market Companies

Generally refers to companies having earnings before interest, taxes, depreciation, and amortization (EBITDA) of less than $100.0 million annually. (Defines the target investment universe for GBDC 4, highlighting its focus on a specific segment of the corporate landscape.)

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance. (Used to define the 'middle-market' companies that GBDC 4 targets for investment.)

Senior Secured Loan

A loan that is backed by collateral, giving the lender a priority claim on the borrower's assets in case of default. (A core investment type for GBDC 4, emphasizing a focus on secured lending.)

Subordinated Loan

A loan that ranks junior to other debt in the event of bankruptcy or liquidation, meaning it is repaid only after senior debt holders have been satisfied. (GBDC 4 selectively invests in these, indicating a willingness to take on higher risk for potentially higher returns.)

1940 Act

The Investment Company Act of 1940, a U.S. federal law that regulates investment companies, including BDCs. (Governs the operations and regulatory requirements of GBDC 4.)

Year-Over-Year Comparison

Information comparing key metrics to the previous year, such as revenue growth, margin changes, and new risks, is not available in the provided text excerpt. The filing details recent activities like a significant debt securitization in June 2025 and the status of credit facilities as of September 30, 2025, but lacks comparative historical financial data.

Key Financial Figures

• $0.001 — hares of the Registrant's common stock, $0.001 par value, outstanding as of November 2
• $100.0 million — , and which allowed for borrowing up to $100.0 million as of September 30, 2025; "2025 Debt
• $1,154.9 million — 2025 Debt Securitization" refers to the $1,154.9 million term debt securitization that we comple
• $799.3 million — the 2025 Issuer, issued an aggregate of $799.3 million of notes, or the "2025 Notes," includin
• $667.0 million — f notes, or the "2025 Notes," including $667.0 million of Class A-1 Senior Secured Floating Ra
• $40.3 million — t Financing Rate or "SOFR" plus 1.63% , $40.3 million of Class A-2 Senior Secured Floating Ra
• $92.0 million — at the three-month SOFR plus 1.80%, and $92.0 million of Class B Senior Secured Floating Rate
• $69.0 million — 0%; the Company also indirectly retains $69.0 million of Class C Senior Secured Floating Rate
• $286.7 million — onth SOFR plus 2.80%, and approximately $286.7 million of Subordinated 2025 Notes, which do no
• $300.0 million — 30, 2025 , allowed for borrowing up to $300.0 million that bears interest at a rate of either
• $750.0 million — 30, 2025 , allowed for borrowing up to $750.0 million that bears interest at a rate of either
• $85.0 billion — o middle-market companies that had over $85.0 billion of capital under management as of Octob
• $5.0 million — ns by primarily investing approximately $5.0 million to $35.0 million of capital, on average
• $35.0 million — investing approximately $5.0 million to $35.0 million of capital, on average, in the securiti
• $10 million — ted States with annual revenues between $10 million and $2.5 billion represent a significan

Filing Documents

• gbdc4-20250930.htm (10-K) — 10783KB
• gbdc4-fy2510xkexhibit42.htm (EX-4.2) — 69KB
• gbdc4-fy2510xkexhibit141.htm (EX-14.1) — 54KB
• gbdc4-fy2510xkexhibit142.htm (EX-14.2) — 94KB
• gbdc4-fy2510xkexhibit211.htm (EX-21.1) — 7KB
• gbdc4-fy2510xkexhibit311.htm (EX-31.1) — 8KB
• gbdc4-fy2510xkexhibit312.htm (EX-31.2) — 8KB
• gbdc4-fy2510xkexhibit321.htm (EX-32.1) — 8KB
• gbdc4-fy2510xkexhibit991.htm (EX-99.1) — 11KB
• gbdc4-20250930_g1.jpg (GRAPHIC) — 35KB
• 0001901612-25-000053.txt ( ) — 34953KB
• gbdc4-20250930.xsd (EX-101.SCH) — 110KB
• gbdc4-20250930_cal.xml (EX-101.CAL) — 82KB
• gbdc4-20250930_def.xml (EX-101.DEF) — 429KB
• gbdc4-20250930_lab.xml (EX-101.LAB) — 941KB
• gbdc4-20250930_pre.xml (EX-101.PRE) — 662KB
• gbdc4-20250930_htm.xml (XML) — 8951KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 46 Item 1B. Unresolved Staff Comments 93 Item 1C. Cybersecurity 93 Item 2.

Properties

Properties 94 Item 3.

Legal Proceedings

Legal Proceedings 94 Item 4. Mine Safety Disclosures 94 Part II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 95 Item 6. Reserved 97 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 98 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 122 Item 8. Consolidated Financial Statements and Supplementary Data 124 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 205 Item 9A.

Controls and Procedures

Controls and Procedures 205 Item 9B. Other Information 205 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 205 Part III. Item 10. Directors, Executive Officers and Corporate Governance 206 Item 11.

Executive Compensation

Executive Compensation 206 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 206 Item 13. Certain Relationships and Related Transactions, and Director Independence 206 Item 14. Principal Accountant Fees and Services 206 Part IV. Item 15. Exhibits and Financial Statement Schedules 207

Signatures

Signatures 210 3 TABLE OF CONTENTS PART I In this Annual Report on Form 10-K, except as otherwise indicated, the terms: "we," "us," "our", "Company" and "GBDC 4" refer to Golub Capital BDC 4, Inc., a Maryland corporation and its consolidated subsidiaries; "GC Advisors" refers to GC Advisors LLC, our investment adviser; "Administrator" refers to Golub Capital LLC, an affiliate of GC Advisors and our administrator; "Adviser Revolver" refers to the line of credit with GC Advisors, which was most recently amended on June 15, 2022, and which allowed for borrowing up to $100.0 million as of September 30, 2025; "2025 Debt Securitization" refers to the $1,154.9 million term debt securitization that we completed on June 20, 2025, in which the Golub Capital BDC 4 CLO 1 LLC, a Delaware limited liability company, or LLC, and our indirect subsidiary, or the 2025 Issuer, issued an aggregate of $799.3 million of notes, or the "2025 Notes," including $667.0 million of Class A-1 Senior Secured Floating Rate Notes, which bear interest at the three-month Secured Overnight Financing Rate or "SOFR" plus 1.63% , $40.3 million of Class A-2 Senior Secured Floating Rate Notes, which bear interest at the three-month SOFR plus 1.80%, and $92.0 million of Class B Senior Secured Floating Rate Notes, which bear interest at the three-month SOFR plus 2.00%; the Company also indirectly retains $69.0 million of Class C Senior Secured Floating Rate Notes, which bear interest at the three-month SOFR plus 2.80%, and approximately $286.7 million of Subordinated 2025 Notes, which do not bear interest; "PNC Facility" refers to the revolving credit facility we entered into with PNC Bank on July 8, 2022 and was terminated on June 30, 2025. Prior to its termination , the PNC Facility had a maturity date of July 8, 2025 and allowed for borrowing up to $100.0 million that bore interest at a rate of either CORRA, SONIA, STR, Daily Simple SOFR, Term SOFR, or the Base Rate (each, as defined in

Business

Item 1. Business GENERAL We are an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, or the 1940 Act. In addition, for U.S. federal income tax purposes, we have elected to be treated as a regulated investment company, or RIC, under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code. We were formed to make investments and generate current income and capital appreciation by investing primarily in one stop loans (a loan that combines characteristics of traditional first lien senior secured loans and second lien or subordinated loans and that are often referred to by other middle-market lenders as unitranche loans) and other senior secured loans of U.S. middle-market companies that are, in most cases, sponsored by private equity firms. GC Advisors structures these one stop loans as senior secured loans, and we obtain security interests in the assets of the portfolio company that serve as collateral in support of the repayment of these loans. This collateral often takes the form of first-priority liens on the assets of the portfolio company. In many cases, we are the sole lender or we, together with our affiliates, are the sole lenders of one stop loans, which can afford us additional influence over the borrower in terms of monitoring and, if necessary, remediating any underperformance. In this Annual Report on Form 10-K, the term "middle-market" generally refers to companies having earnings before interest, taxes, depreciation and amortization, or EBITDA, of less than $100.0 million annually. Our investment objective is to generate current income and capital appreciation by investing primarily in senior secured and one stop loans of U.S. middle-market companies. We also selectively invest in second lien and subordinated (a loan that ranks senior only to a borrower's equity securities and ra

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