Golub Capital IPO Prices Higher in Debut

NEW YORK (Reuters) – Golub Capital BDC Inc (GBDC.O) shares closed 1.4 percent above their initial public offering price on Thursday after opening flat.

The shares closed at $14.71, 21 cents above their IPO price. The company earlier on Thursday priced its IPO below the expected range and sold fewer shares than anticipated.

Chicago-based Golub sold 7.1 million shares for $14.50 each, raising about $103 million. It had planned to sell 8.1 million shares for $15 to $16 each.

The company, which had over $4 billion in capital as of Dec. 31, invests in middle-market companies that are mostly backed by private equity investors. Golub defines middle-market companies as companies whose earnings before interest, taxes, depreciation and amortization are between $5 million and $40 million annually.

Golub’s portfolio companies include Aramark Corp [ARMRK.UL], Container Store, and MetroPCS Wireless Inc [METRRW.UL].

Golub is advised by GC Advisors, which identifies and analyzes potential investments. Golub pays GC Advisors a base management fee of 1.375 percent of its average adjusted gross assets excluding cash and cash equivalents, including assets purchased with loans. Golub also pays an incentive fee.

Underwriters on the Golub IPO were led by Wells Fargo Securities and UBS Investment Bank.

(Reporting by Clare Baldwin; Editing by Derek Caney, Phil Berlowitz)