UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

 
FORM 10-Q

þ                 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31,June 30, 2017

OR

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number 814-01128

Golub Capital Investment Corporation
(Exact name of registrant as specified in its charter)

Maryland 47-1893276
(State or other jurisdiction of incorporation or organization)  (I.R.S. Employer Identification No.)

666 Fifth Avenue, 18th Floor
New York, NY 10103
(Address of principal executive offices)

(212) 750-6060
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes o   No þ

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes o No   o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  o
Accelerated filer o
Non-accelerated filer  o (Do not check if a smaller reporting company)
Smaller reporting company o
Emerging growth company þ
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  o  No þ

As of May 11,August 9, 2017, the Registrant had 46,515,568.55249,551,036.707 shares of common stock, $0.001 par value, outstanding.

Part I. Financial Information  
Item 1.Financial Statements
 Consolidated Statements of Financial Condition as of March 31,June 30, 2017 (unaudited) and September 30, 2016
 Consolidated Statements of Operations for the three and sixnine months ended March 31,June 30, 2017 (unaudited) and 2016 (unaudited)
 Consolidated Statements of Changes in Net Assets for the sixnine months ended March 31,June 30, 2017 (unaudited) and 2016 (unaudited)
 Consolidated Statements of Cash Flows for the sixnine months ended March 31,June 30, 2017 (unaudited) and 2016 (unaudited)
 Consolidated Schedules of Investments as of March 31,June 30, 2017 (unaudited) and September 30, 2016
 Notes to Consolidated Financial Statements (unaudited)
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative And Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
Part II. Other Information 
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6.Exhibits



2


Golub Capital Investment Corporation and Subsidiaries
Consolidated Statements of Financial Condition (unaudited)
(In thousands, except share and per share data)


March 31, 2017 September 30, 2016June 30, 2017 September 30, 2016
(unaudited)  (unaudited)  
Assets  
   
  
   
Investments, at fair value  
   
  
   
Non-controlled/non-affiliate company investments$1,114,902
 $1,021,754
$1,255,842
 $1,021,754
Controlled affiliate company investments52,423
 47,956
48,118
 47,956
Total investments at fair value (amortized cost of $1,153,796 and $1,061,376, respectively)1,167,325
 1,069,710
Total investments at fair value (amortized cost of $1,290,560 and $1,061,376, respectively)1,303,960
 1,069,710
Cash and cash equivalents15,164
 4,675
5,220
 4,675
Restricted cash and cash equivalents37,642
 71,056
42,516
 71,056
Interest receivable3,910
 3,308
4,289
 3,308
Receivable from investments sold

2,118
 
Other assets270
 249
185
 249
Total Assets$1,224,311
 $1,148,998
$1,358,288
 $1,148,998
Liabilities  
   
  
   
Debt$571,900
 $520,600
$630,850
 $520,600
Less unamortized debt issuance costs3,330
 5,073
2,910
 5,073
Debt less unamortized debt issuance costs568,570
 515,527
627,940
 515,527
Interest payable1,821
 1,414
2,121
 1,414
Distributions payable8,925
 9,869
14,210
 9,869
Capital calls received in advance5,963
 
Management and incentive fees payable6,267
 4,960
7,315
 4,960
Payable for open trades190
 
Payable for investments purchased3,076
 
Accounts payable and accrued expenses971
 902
1,146
 902
Accrued trustee fees29
 19
40
 19
Total Liabilities592,736
 532,691
655,848
 532,691
Commitments and Contingencies (Note 9)  
   
  
   
Net Assets  
   
  
   
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of March 31, 2017 and September 30, 2016
 
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 42,104,997.486 and 41,087,178.250 shares issued and outstanding as of March 31, 2017 and September 30, 2016, respectively42
 41
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of June 30, 2017 and September 30, 2016
 
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 46,829,343.936 and 41,087,178.250 shares issued and outstanding as of June 30, 2017 and September 30, 2016, respectively47
 41
Paid in capital in excess of par631,285
 616,018
702,145
 616,018
Capital distributions in excess of net investment income(12,544) (7,158)(12,507) (7,158)
Net unrealized appreciation (depreciation) on investments13,529
 8,334
13,401
 8,334
Net realized gain (loss) on investments(737) (928)(646) (928)
Total Net Assets631,575
 616,307
702,440
 616,307
Total Liabilities and Total Net Assets$1,224,311
 $1,148,998
$1,358,288
 $1,148,998
Number of common shares outstanding42,104,997.486
 41,087,178.250
46,829,343.936
 41,087,178.250
Net asset value per common share$15.00
 $15.00
$15.00
 $15.00

See Notes to Consolidated Financial Statements.




3


Golub Capital Investment Corporation and Subsidiaries
Consolidated Statements of Operations (unaudited)
(In thousands, except share and per share data)


Three months ended March 31, Six months ended March 31,Three months ended June 30, Nine months ended June 30,
2017 2016 2017 20162017 2016 2017 2016
Investment income  
   
      
   
    
From non-controlled/non-affiliate company investments:  
   
      
   
    
Interest income$20,813
 $11,196
 $41,562
 $21,206
$24,498
 $13,856
 $66,060
 $35,062
Dividend income
 17
 1
 17
157
 48
 158
 65
Fee income65
 359
 211
 375
827
 1
 1,038
 376
Total investment income from non-controlled/non-affiliate company investments20,878
 11,572
 41,774
 21,598
25,482
 13,905
 67,256
 35,503
From controlled affiliate company investments:  
   
   
   
  
   
   
   
Interest income
 730
 732
 1,215

 733
 732
 1,948
Dividend income1,242
 
 1,663
 
1,216
 
 2,879
 
Total investment income from controlled affiliate company investments1,242
 730
 2,395
 1,215
1,216
 733
 3,611
 1,948
Total investment income22,120
 12,302
 44,169
 22,813
26,698
 14,638
 70,867
 37,451
Expenses  
   
   
   
  
   
   
   
Interest and other debt financing expenses5,313
 2,396
 10,235
 4,610
5,844
 2,975
 16,079
 7,585
Base management fee3,881
 2,143
 7,677
 4,133
4,263
 2,672
 11,940
 6,805
Incentive fee2,222
 1,177
 4,966
 1,979
3,314
 1,719
 8,280
 3,698
Professional fees480
 248
 922
 573
502
 198
 1,424
 771
Administrative service fee343
 232
 705
 445
401
 216
 1,106
 661
General and administrative expenses(4) 4
 26
 14
22
 52
 48
 66
Total expenses12,235
 6,200
 24,531
 11,754
14,346
 7,832
 38,877
 19,586
Base management fee waived (Note 4)(1,059) (584) (2,094) (1,127)(1,162) (729) (3,256) (1,856)
Incentive fee waived (Note 4)
 
 (16) 
(733) 
 (749) 
Net expenses11,176
 5,616
 22,421
 10,627
12,451
 7,103
 34,872
 17,730
Net investment income10,944
 6,686
 21,748
 12,186
14,247
 7,535
 35,995
 19,721
              
Net gain (loss) on investments  
   
   
   
  
   
   
   
Net realized gain (loss) on investments:  
   
   
   
  
   
   
   
Non-controlled/non-affiliate company investments134
 48
 331
 733
91
 (23) 422
 710
Net realized gain (loss) on investments134
 48
 331
 733
91
 (23) 422
 710
Net change in unrealized appreciation (depreciation) on investments:  
   
   
   
  
   
   
   
Non-controlled/non-affiliate company investments1,515
 288
 4,893
 804
12
 1,973
 4,905
 2,777
Controlled affiliate company investments101
 272
 302
 229
(140) 548
 162
 777
Net change in unrealized appreciation (depreciation) on investments1,616
 560
 5,195
 1,033
(128) 2,521
 5,067
 3,554
Net gain (loss) on investments1,750
 608
 5,526
 1,766
(37) 2,498
 5,489
 4,264
Net increase in net assets resulting from operations$12,694
 $7,294
 $27,274
 $13,952
$14,210
 $10,033
 $41,484
 $23,985
Per Common Share Data  
   
   
   
  
   
   
   
Basic and diluted earnings per common share$0.30
 $0.28
 $0.65
 $0.58
$0.31
 $0.35
 $0.96
 $0.93
Basic and diluted weighted average common shares outstanding41,892,513
 25,707,003
 41,569,032
 23,916,838
45,882,813
 29,278,962
 43,006,959
 25,697,689
See Notes to Consolidated Financial Statements.




4


Golub Capital Investment Corporation and Subsidiaries
Consolidated Statements of Changes in Net Assets (unaudited)
(In thousands, except share data)



      Capital Distributions in Excess of Net Investment Income            Capital Distributions in Excess of Net Investment Income      
Common Stock Paid in Capital in Excess of Par Net Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (loss) on Investments Total Net AssetsCommon Stock Paid in Capital in Excess of Par Net Unrealized Appreciation (Depreciation) on Investments Net Realized Gain (loss) on Investments Total Net Assets
Shares Par Amount Capital Distributions in Excess of Net Investment IncomeShares Par Amount Capital Distributions in Excess of Net Investment Income
Balance at September 30, 201520,843,155.219
 $21
 $312,626
 $(2,521)$2,479
$42
$312,647
20,843,155.219
 $21
 $312,626
 $(2,521)$2,479
$42
$312,647
Issuance of common stock (1)
5,896,577.256
 6
 88,443
 


88,449
12,592,917.141
 13
 188,881
 


188,894
Net increase in net assets resulting from operations
 
 
 12,186
 1,033
 733
 13,952

 
 
 19,721
 3,554
 710
 23,985
Distributions to stockholders:  
   
   
   
   
   
    
   
   
   
   
   
  
Stock issued in connection with dividend reinvestment plan522,004.664
 
 7,830
 
 
 
 7,830
686,474.328
 
 10,297
 
 
 
 10,297
Distributions from net investment income
 
 
 (9,013) 
 
 (9,013)
 
 
 (13,952) 
 
 (13,952)
Distributions declared and payable
 
 
 (4,939) 
 
 (4,939)
 
 
 (10,033) 
 
 (10,033)
Total increase (decrease) for the period ended March 31, 20166,418,581.920
 6
 96,273
 (1,766) 1,033
 733
 96,279
Balance at March 31, 201627,261,737.139
 $27
 $408,899
 $(4,287) $3,512
 $775
 $408,926
Total increase (decrease) for the period ended June 30, 201613,279,391.469
 13
 199,178
 (4,264) 3,554
 710
 199,191
Balance at June 30, 201634,122,546.688
 $34
 $511,804
 $(6,785) $6,033
 $752
 $511,838
                          
Balance at September 30, 201641,087,178.250
 $41
 $616,018
 $(7,158) $8,334
 $(928) $616,307
41,087,178.250
 $41
 $616,018
 $(7,158) $8,334
 $(928) $616,307
Issuance of common stock (2)
4,410,571.066
 4
 66,154
 
 
 
 66,158
Net increase in net assets resulting from operations
 
 
 21,748
 5,195
 331
 27,274

 
 
 35,995
 5,067
 422
 41,484
Distributions to stockholders:  
   
   
   
   
   
    
   
   
   
   
   
  
Stock issued in connection with dividend reinvestment plan1,017,819.236
 1
 15,267
 
 
 
 15,268
1,331,594.620
 2
 19,973
 
 
 
 19,975
Distributions from net investment income
 
 
 (18,209) 
 
 (18,209)
 
 
 (27,134) 
 
 (27,134)
Distributions from realized gain
 
 
 
 
 (140) (140)
 
 
 
 
 (140) (140)
Distributions declared and payable
 
 
 (8,925) 
 
 (8,925)
 
 
 (14,210) 
 
 (14,210)
Total increase (decrease) for the period ended March 31, 20171,017,819.236
 1
 15,267
 (5,386) 5,195
 191
 15,268
Balance at March 31, 201742,104,997.486
 $42
 $631,285
 $(12,544) $13,529
 $(737) $631,575
Total increase (decrease) for the period ended June 30, 20175,742,165.686
 6
 86,127
 (5,349) 5,067
 282
 86,133
Balance at June 30, 201746,829,343.936
 $47
 $702,145
 $(12,507) $13,401
 $(646) $702,440
 
(1) 
Refer to Note 3 for a detailed listing of the common stock share issuances for the sixnine months ended March 31,June 30, 2016.
(2)
Refer to Note 3 for a detailed listing of the common stock share issuances for the nine months ended June 30, 2017.

See Notes to Consolidated Financial Statements.






5


Golub Capital Investment Corporation and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)
(In thousands)


Six months ended March 31,Nine months ended June 30,
2017 20162017 2016
Cash flows from operating activities  
    
  
Net increase in net assets resulting from operations$27,274
 $13,952
$41,484
 $23,985
Adjustments to reconcile net increase in net assets resulting from operations
to net cash (used in) provided by operating activities
  
    
  
Amortization of deferred debt issuance costs1,781
 964
2,522
 1,509
Accretion of discounts and amortization of premiums(2,379) (1,403)(4,590) (2,055)
Net realized (gain) loss on investments(331) (733)(422) (710)
Net change in unrealized (appreciation) depreciation on investments(5,195) (1,033)(5,067) (3,554)
Proceeds from (fundings of) revolving loans, net(829) (2,165)282
 (2,362)
Fundings of investments(185,130) (334,181)(432,300) (588,484)
Proceeds from principal payments and sales of portfolio investments96,814
 189,076
208,863
 236,278
PIK interest(565) (48)(1,016) (74)
Changes in operating assets and liabilities:      
Interest receivable(602) (382)(981) (1,073)
Receivable for investments sold
 (4,265)(2,118) 
Other assets(21) 130
64
 122
Interest payable407
 131
707
 215
Management and incentive fees payable1,307
 1,002
2,355
 2,063
Payable for investments purchased190
 
3,076
 1,858
Accounts payable and accrued expenses69
 (394)244
 (260)
Accrued trustee fees10
 
21
 (3)
Net cash (used in) provided by operating activities(67,200) (139,349)(186,876) (332,545)
Cash flows from investing activities  
    
  
Net change in restricted cash and cash equivalents33,414
 3,005
28,540
 330
Net cash (used in) provided by investing activities33,414
 3,005
28,540
 330
Cash flows from financing activities  
    
  
Borrowings on debt187,750
 324,250
397,900
 627,350
Repayments of debt(136,450) (270,050)(287,650) (472,700)
Capitalized debt issuance costs(38) (210)(359) (702)
Capital calls received in advance5,963
 
Proceeds from issuance of common shares
 88,449
66,158
 188,894
Distributions paid(12,950) (6,055)(17,168) (8,527)
Net cash provided by (used in) financing activities44,275
 136,384
158,881
 334,315
Net change in cash and cash equivalents10,489
 40
545
 2,100
Cash and cash equivalents, beginning of period4,675
 2,747
4,675
 2,747
Cash and cash equivalents, end of period$15,164
 $2,787
$5,220
 $4,847
Supplemental information:  
    
  
Cash paid during the period for interest$8,047
 $3,515
$12,850
 $5,861
Distributions declared during the period27,274
 13,952
41,484
 23,985
Supplemental disclosure of noncash operating activity:      
Funding of LLC equity interest in GCIC SLF$(34,917) $
$(34,917) $
Proceeds from subordinated notes in GCIC SLF principal payment34,917
 
34,917
 
Supplemental disclosure of noncash financing activity:      
Distributions payable$8,925
 $4,939
$14,210
 $10,033
See Notes to Consolidated Financial Statements.


6


Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited)
March 31,June 30, 2017
(In thousands)



Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investments              
   
   
   
              
   
   
   
Non-controlled/non-affiliate company investments            
   
   
   
            
   
   
   
Debt investments              
   
   
   
              
   
   
   
Aerospace and Defense              
   
   
   
              
   
   
   
ILC Dover, LPOne stop L + 9.00% 8.00% cash/ 2.00% PIK 03/2020 $2,362
 $2,315
 0.4
%$2,173
One stop L + 9.00% 8.23% cash/
2.00% PIK
 03/2020 $2,359
 $2,315
 0.3
%$2,359
ILC Dover, LPOne stop L + 9.00% 8.00% cash/ 2.00% PIK 03/2019 106
 103
 
 97
One stop L + 9.00% 8.23% cash/
2.00% PIK
 03/2019 107
 104
 
 107
NTS Technical Systems*
One stop L + 6.25% 7.25% 06/2021 3,814
 3,758
 0.6
 3,775
One stop L + 6.00% 7.05% 06/2021 3,250
 3,202
 0.5
 3,250
NTS Technical Systems(4)
One stop L + 6.25% 
N/A(5)
 06/2021 
 (12) 
 (5)One stop L + 6.00% 
N/A (5)
 06/2021 
 (12) 
 
NTS Technical Systems(4)
One stop L + 6.25% 
N/A(5)
 06/2021 
 (20) 
 (4)One stop L + 6.00% 
N/A (5)
 06/2021 
 (16) 
 
Tresys Technology Holdings, Inc.(6)
One stop L + 6.75% 8.00% 12/2017 53
 28
 
 16
One stop L + 6.75% 8.05% 12/2017 53
 28
 
 16
Tresys Technology Holdings, Inc.(6)One stop L + 6.75% 8.00% 12/2017 9
 9
 
 9
One stop L + 6.75% 8.01% 12/2017 9
 9
 
 9
Tresys Technology Holdings, Inc.One stop P + 5.50% 9.50% 12/2017 1
 1
 
 1
One stop P + 7.50% 11.75% 12/2017 1
 1
 
 1
Tronair Parent, Inc.#
Senior loan L + 4.75% 5.86% 09/2023 192
 190
 
 191
Senior loan L + 4.75% 5.84% 09/2023 191
 190
 
 190
Tronair Parent, Inc.Senior loan P + 3.50% 7.50% 09/2021 16
 15
 
 16
Senior loan L + 4.50% 5.59% 09/2021 20
 19
 
 19
Whitcraft LLC*
One stop L + 6.50% 7.50% 05/2020 6,711
 6,668
 1.1
 6,711
Whitcraft LLC#
One stop L + 6.25% 7.55% 04/2023 16,348
 16,113
 2.3
 16,185
Whitcraft LLC(4)
One stop P + 5.25% 9.50% 04/2023 5
 4
 
 4
Whitcraft LLC(4)
One stop L + 6.50% 
N/A(5)
 05/2020 
 (1) 
 
One stop L + 6.25% 
N/A (5)
 04/2023 
 (108) 
 (75)
 13,264
 13,054
 2.1
 12,980
 22,343
 21,849
 3.1
 22,065
Automobile              
   
   
   
              
   
   
   
Dent Wizard International Corporation*
Senior loan L + 4.75% 5.75% 04/2020 2,193
 2,179
 0.3
 2,172
Senior loan L + 4.75% 5.97% 04/2020 2,188
 2,175
 0.3
 2,188
OEConnection LLC#*
Senior loan L + 5.00% 6.15% 06/2022 11,111
 10,861
 1.8
 11,111
Senior loan L + 5.00% 6.30% 06/2022 11,083
 10,845
 1.6
 10,972
OEConnection LLC#*
Senior loan L + 4.75% 6.05% 06/2022 5,868
 5,809
 0.8
 5,809
OEConnection LLC(4)
Senior loan L + 5.00% 
N/A(5)
 06/2021 
 (1) 
 
Senior loan L + 5.00% 
N/A (5)
 06/2021 
 (1) 
 (1)
Polk Acquisition Corp.*
Senior loan L + 5.00% 6.00% 06/2022 4,963
 4,941
 0.8
 4,963
Senior loan L + 5.00% 6.23% 06/2022 4,950
 4,929
 0.7
 4,950
T5 Merger Corporation#*
One stop L + 6.25% 7.25% 03/2022 30,210
 29,688
 4.7
 29,908
One stop L + 6.25% 7.30% 03/2022 30,134
 29,639
 4.3
 30,134
T5 Merger CorporationOne stop L + 6.25% 7.33% 03/2022 1,104
 1,094
 0.2
 1,104
T5 Merger CorporationOne stop L + 6.25% 7.25% 03/2022 60
 58
 
 58
One stop L + 6.25% 7.41% 03/2022 108
 106
 
 108
T5 Merger Corporation(4)
One stop L + 6.25% 
N/A(5)
 03/2022 
 (45) 
 (46)One stop L + 6.25% 
N/A (5)
 03/2022 
 (33) 
 
 48,537
 47,681
 7.6
 48,166
 55,435
 54,563
 7.9
 55,264
Beverage, Food and Tobacco              
   
   
   
              
   
   
   
Abita Brewing Co., L.L.C.#
One stop L + 7.25% 7.00% cash/ 1.25% PIK 04/2021 3,846
 3,811
 0.5
 3,461
One stop L + 6.25% 7.23% cash/
0.25% PIK
 04/2021 3,782
 3,750
 0.5
 3,669
Abita Brewing Co., L.L.C.(4)
One stop L + 7.25% 
N/A(5)
 04/2021 
 (1) 
 (2)One stop L + 6.25% 
N/A (5)
 04/2021 
 (1) 
 (1)
ABP Corporation*
Senior loan L + 4.75% 6.00% 09/2018 601
 601
 0.1
 580
Senior loan L + 4.75% 6.00% 09/2018 599
 599
 0.1
 579
ABP CorporationSenior loan P + 3.50% 7.50% 09/2018 37
 38
 
 35
Senior loan P + 3.50% 7.75% 09/2018 37
 38
 
 35
Benihana, Inc.#*
One stop L + 7.00% 8.25% 01/2019 320
 319
 0.1
 317
One stop L + 7.00% 8.25% 01/2019 320
 319
 0.1
 317
Benihana, Inc.One stop L + 7.00% 8.58% 07/2018 14
 14
 
 13
One stop L + 7.00% 9.09% 07/2018 20
 20
 
 20
C. J. Foods, Inc.#*
One stop L + 6.25% 7.40% 05/2019 12,734
 12,656
 2.0
 12,607
One stop L + 6.25% 7.55% 05/2019 12,703
 12,633
 1.8
 12,703
C. J. Foods, Inc.One stop L + 6.25% 7.40% 05/2019 1,605
 1,601
 0.3
 1,589
One stop L + 6.25% 7.55% 05/2019 1,601
 1,597
 0.2
 1,601
C. J. Foods, Inc.One stop L + 6.25% 7.25% 05/2019 472
 468
 0.1
 456
One stop L + 6.25% 7.41% 05/2019 420
 416
 0.1
 420
Firebirds International, LLC*
One stop L + 5.75% 7.00% 05/2018 3,313
 3,313
 0.5
 3,313
One stop L + 5.75% 7.00% 05/2018 3,305
 3,305
 0.5
 3,305
Firebirds International, LLC*
One stop L + 5.75% 7.00% 05/2018 931
 931
 0.2
 931
One stop L + 5.75% 7.00% 05/2018 928
 928
 0.1
 928
Firebirds International, LLCOne stop L + 5.75% 7.00% 05/2018 299
 299
 
 299
Firebirds International, LLC*
One stop L + 5.75% 7.00% 05/2018 298
 298
 0.1
 298
Firebirds International, LLCOne stop L + 5.75% 
N/A(5)
 05/2018 
 
 
 
One stop L + 5.75% 
N/A (5)
 05/2018 
 
 
 
First Watch Restaurants, Inc.*
One stop L + 6.00% 7.31% 12/2020 3,551
 3,525
 0.6
 3,551
One stop L + 6.00% 7.38% 12/2020 3,541
 3,518
 0.5
 3,541
First Watch Restaurants, Inc.*
One stop L + 6.00% 7.15% 12/2020 174
 173
 
 174
One stop L + 6.00% 7.30% 12/2020 174
 173
 
 174
First Watch Restaurants, Inc.*
One stop L + 6.00% 7.15% 12/2020 175
 173
 
 175
One stop L + 6.00% 7.30% 12/2020 174
 173
 
 174
First Watch Restaurants, Inc.One stop L + 6.00% 7.03% 12/2020 150
 149
 
 150
One stop P + 5.00% 9.25% 12/2020 169
 168
 
 169
First Watch Restaurants, Inc.One stop P + 5.00% 9.00% 12/2020 68
 67
 
 68
One stop L + 6.00% 7.30% 12/2020 150
 149
 
 150
First Watch Restaurants, Inc.(4)
One stop L + 6.00% 
N/A (5)
 12/2020 
 (2) 
 
Hopdoddy Holdings, LLCOne stop L + 8.00% 9.00% 08/2020 423
 421
 0.1
 423
One stop L + 8.00% 9.23% 08/2020 422
 420
 0.1
 422
Hopdoddy Holdings, LLCOne stop L + 8.00% 
N/A(5)
 08/2020 
 
 
 
One stop L + 8.00% 
N/A (5)
 08/2020 
 
 
 
Hopdoddy Holdings, LLC(4)
One stop L + 8.00% 
N/A(5)
 08/2020 
 (1) 
 
One stop L + 8.00% 
N/A (5)
 08/2020 
 (1) 
 
Julio & Sons Company*
One stop L + 5.50% 6.54% 12/2018 941
 937
 0.2
 941
One stop L + 5.50% 6.68% 12/2018 938
 935
 0.1
 938


7

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31,June 30, 2017
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Beverage, Food and Tobacco - (continued)                
Julio & Sons CompanyOne stop L + 5.50% 6.55% 12/2018 $310
 $309
 
%$310
One stop L + 5.50% 6.68% 12/2018 $309
 $308
 0.1
%$309
Julio & Sons Company(4)One stop L + 5.50% 6.54% 12/2018 43
 43
 
 43
One stop L + 5.50% 
N/A (5)
 12/2018 
 (1) 
 
Julio & Sons Company(4)
One stop L + 5.50% 
N/A(5)
 12/2018 
 (2) 
 
One stop L + 5.50% 
N/A (5)
 12/2018 
 (2) 
 
Mid-America Pet Food, L.L.C.#
One stop L + 6.25% 7.40% 12/2021 6,428
 6,336
 1.0
 6,428
One stop L + 6.25% 7.55% 12/2021 6,411
 6,325
 0.9
 6,411
Mid-America Pet Food, L.L.C.(4)
One stop L + 6.25% 
N/A(5)
 12/2021 
 (1) 
 
One stop L + 6.25% 
N/A (5)
 12/2021 
 (1) 
 
P&P Food Safety US Acquisition, Inc.#
One stop L + 6.50% 7.64% 11/2021 4,113
 4,065
 0.7
 4,113
One stop L + 6.50% 7.77% 11/2021 4,102
 4,057
 0.6
 4,102
P&P Food Safety US Acquisition, Inc.One stop L + 6.50% 
N/A(5)
 11/2021 
 
 
 
One stop L + 6.50% 
N/A (5)
 11/2021 
 
 
 
Purfoods, LLC#*
One stop L + 6.25% 7.25% 05/2021 8,007
 7,908
 1.3
 8,007
One stop L + 6.25% 7.45% 05/2021 7,986
 7,894
 1.2
 7,986
Purfoods, LLCOne stop N/A 7.00% PIK 05/2026 94
 94
 
 101
One stop N/A 7.00% PIK 05/2026 101
 101
 
 102
Purfoods, LLCOne stop L + 6.25% 7.25% 05/2021 60
 59
 
 60
One stop L + 6.25% 7.42% 05/2021 65
 64
 
 65
Purfoods, LLCOne stop L + 6.25% 7.25% 05/2021 10
 10
 
 10
One stop L + 6.25% 7.34% 05/2021 15
 15
 
 15
Purfoods, LLCOne stop L + 6.25% 7.34% 05/2021 14
 14
 
 14
Purfoods, LLCOne stop L + 6.25% 7.55% 05/2021 10
 10
 
 10
Purfoods, LLC(4)
One stop L + 6.25% 
N/A(5)
 05/2021 
 (1) 
 
One stop L + 6.25% 
N/A (5)
 05/2021 
 (1) 
 
Smashburger Finance LLC*
Senior loan L + 5.50% 6.75% 05/2018 505
 503
 0.1
 494
Senior loan L + 5.50% 6.80% 05/2018 503
 502
 0.1
 478
Smashburger Finance LLC(4)
Senior loan L + 5.50% 
N/A(5)
 05/2018 
 (8) 
 
Senior loan L + 5.50% 
N/A (5)
 05/2018 
 (6) 
 
Surfside Coffee Company LLC*
One stop L + 5.25% 6.25% 06/2020 2,333
 2,318
 0.4
 2,333
One stop L + 5.25% 6.55% 06/2020 2,327
 2,313
 0.3
 2,327
Surfside Coffee Company LLCOne stop L + 5.25% 6.25% 06/2020 176
 173
 
 176
One stop L + 5.25% 6.54% 06/2020 176
 175
 
 176
Surfside Coffee Company LLCOne stop L + 5.25% 6.25% 06/2020 26
 25
 
 26
One stop L + 5.25% 6.46% 06/2020 26
 25
 
 26
Tate's Bake Shop, Inc.#
Senior loan L + 5.00% 6.15% 08/2019 143
 142
 
 143
Senior loan L + 5.00% 6.30% 08/2019 143
 142
 
 143
Uinta Brewing Company#
One stop L + 8.50% 9.50% 08/2019 900
 900
 0.1
 864
One stop L + 8.50% 9.73% 08/2019 900
 900
 0.1
 873
Uinta Brewing CompanyOne stop L + 8.50% 9.50% 08/2019 130
 129
 
 123
One stop L + 8.50% 9.72% 08/2019 130
 129
 
 125
 52,932
 52,496
 8.3
 52,312
 52,799
 52,398
 7.5
 52,604
Broadcasting and Entertainment   
   
     
   
   
     
Extreme Reach Inc.*
Senior loan L + 6.25% 7.28% 02/2020 909
 887
 0.2
 921
TouchTunes Interactive Networks, Inc.*
Senior loan L + 4.75% 5.90% 05/2021 694
 691
 0.1
 696
Senior loan L + 4.75% 6.05% 05/2021 692
 690
 0.1
 696
 1,603
 1,578
 0.3
 1,617
        
Building and Real Estate                
Brooks Equipment Company, LLC*
One stop L + 5.00% 6.03% 08/2020 6,068
 6,068
 1.0
 6,022
One stop L + 5.00% 6.21% 08/2020 6,068
 6,068
 0.9
 6,068
Brooks Equipment Company, LLC*
One stop L + 5.00% 6.05% 08/2020 1,530
 1,519
 0.3
 1,519
One stop L + 5.00% 6.20% 08/2020 1,495
 1,485
 0.2
 1,495
Brooks Equipment Company, LLCOne stop L + 5.00% 6.00% 08/2020 47
 47
 
 42
One stop L + 5.00% 
N/A (5)
 08/2020 
 
 
 
Jensen Hughes, Inc.#
Senior loan L + 5.00% 6.00% 12/2021 115
 114
 
 115
Senior loan L + 5.00% 6.23% 12/2021 115
 114
 
 115
MRI Software LLC#*
One stop L + 6.00% 7.30% 06/2023 18,876
 18,546
 2.6
 18,688
MRI Software LLC(4)
One stop L + 6.00% 
N/A (5)
 06/2023 
 (63) 
 (63)
MRI Software LLC(4)
One stop L + 6.00% 
N/A (5)
 06/2023 
 (97) 
 (2)
Paradigm DKD Group, LLC#
Senior loan L + 4.50% 5.75% 11/2018 2,149
 2,128
 0.3
 2,149
Senior loan L + 4.75% 6.12% 11/2018 2,143
 2,125
 0.3
 2,143
Paradigm DKD Group, LLCSenior loan L + 4.50% 6.03% 11/2018 167
 160
 
 167
Senior loan P + 3.50% 7.34% 11/2018 566
 560
 0.1
 566
 10,076
 10,036
 1.6
 10,014
 29,263
 28,738
 4.1
 29,010
                
Checmicals, Plastics and Rubber   
   
     
Chemicals, Plastics and Rubber   
   
     
Flexan, LLC*
One stop L + 5.75% 6.90% 02/2020 1,046
 1,037
 0.2
 1,046
One stop L + 5.75% 7.05% 02/2020 1,044
 1,035
 0.1
 1,044
Flexan, LLCOne stop L + 5.75% 
N/A(5)
 02/2020 
 
 
 
One stop L + 5.75% 
N/A (5)
 02/2020 
 
 
 
 1,046
 1,037
 0.2
 1,046
 1,044
 1,035
 0.1
 1,044
Diversified/Conglomerate Manufacturing              
   
   
   
              
   
   
   
Chase Industries, Inc.#*
One stop L + 5.75% 6.75% 09/2020 6,974
 6,971
 1.1
 6,974
One stop L + 5.75% 6.90% 09/2020 11,670
 11,617
 1.7
 11,553
Chase Industries, Inc.*
One stop L + 5.75% 6.75% 09/2020 1,549
 1,549
 0.3
 1,549
One stop L + 5.75% 6.90% 09/2020 1,545
 1,545
 0.2
 1,529
Chase Industries, Inc.One stop L + 5.75% 6.75% 09/2020 105
 105
 
 105
One stop L + 5.75% 6.84% 09/2020 104
 105
 
 98
Inventus Power, Inc.#
One stop L + 6.50% 7.50% 04/2020 10,147
 10,077
 1.5
 9,741
One stop L + 6.50% 7.73% 04/2020 10,147
 10,083
 1.4
 9,538
Inventus Power, Inc.(4)
One stop L + 6.50% 
N/A(5)
 04/2020 
 (4) 
 (26)One stop L + 6.50% 
N/A (5)
 04/2020 
 (4) 
 (39)
Onicon Incorporated*
One stop L + 6.00% 7.02% 04/2020 181
 179
 
 181
One stop L + 6.00% 7.30% 04/2020 180
 178
 
 180
Onicon IncorporatedOne stop L + 6.00% 
N/A(5)
 04/2020 
 
 
 
One stop L + 6.00% 
N/A (5)
 04/2020 
 
 
 
Pasternack Enterprises, Inc. and Fairview Microwave, Inc.#
Senior loan L + 5.00% 6.00% 05/2022 191
 190
 
 191
PetroChoice Holdings, Inc.*
Senior loan L + 5.00% 6.00% 08/2022 1,637
 1,594
 0.3
 1,637
Senior loan L + 5.00% 6.12% 08/2022 1,633
 1,592
 0.2
 1,633
Reladyne, Inc.#*
Senior loan L + 5.25% 6.25% 07/2022 10,319
 10,175
 1.6
 10,319
Senior loan L + 5.25% 6.40% 07/2022 10,293
 10,156
 1.5
 10,190
Reladyne, Inc.*
Senior loan L + 5.25% 6.25% 07/2022 111
 110
 
 111
Senior loan L + 5.25% 6.33% 07/2022 3,042
 3,012
 0.4
 3,012
Reladyne, Inc.*
Senior loan L + 5.25% 6.40% 07/2022 111
 110
 
 110
Reladyne, Inc.Senior loan L + 5.25% 6.35% 07/2022 70
 69
 
 69


8

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31,June 30, 2017
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Diversified/Conglomerate Manufacturing - (continued)Diversified/Conglomerate Manufacturing - (continued)        Diversified/Conglomerate Manufacturing - (continued)        
Reladyne, Inc.*
Senior loan L + 5.25% 6.40% 07/2022 $36
 $36
 
%$36
Reladyne, Inc.Senior loan L + 5.25% 6.25% 07/2022 $70
 $68
 
%$70
Senior loan L + 5.25% 6.40% 07/2022 13
 11
 
 11
Reladyne, Inc.Senior loan L + 5.25% 6.25% 07/2022 36
 36
 
 36
Senior loan L + 5.25% 6.36% 07/2022 5
 4
 
 6
Reladyne, Inc.Senior loan L + 5.25% 6.25% 07/2022 13
 11
 
 13
Reladyne, Inc.(4)
Senior loan L + 5.25% 
N/A (5)
 07/2022 
 (14) 
 (14)
Sunless Merger Sub, Inc.#
Senior loan L + 5.00% 6.25% 07/2019 292
 254
 0.1
 292
Senior loan L + 5.00% 6.25% 07/2019 289
 255
 
 289
Sunless Merger Sub, Inc.Senior loan P + 3.75% 7.50% 07/2019 17
 15
 
 17
Senior loan P + 3.75% 7.75% 07/2019 65
 63
 
 65
 31,642
 31,330
 4.9
 31,210
 39,203
 38,818
 5.4
 38,266
Diversified/Conglomerate Service              
   
   
   
              
   
   
   
Accellos, Inc.#
One stop L + 5.75% 6.90% 07/2020 463
 459
 0.1
 463
Actiance, Inc.One stop L + 9.00% 10.00% 10/2019 1,918
 1,857
 0.3
 1,918
One stop L + 9.00% 10.23% 10/2019 1,918
 1,863
 0.3
 1,918
Actiance, Inc.One stop L + 9.00% 
N/A(5)
 10/2019 
 
 
 
One stop L + 9.00% 10.23% 10/2019 20
 20
 
 20
Agility Recovery Solutions Inc.*
One stop L + 6.50% 7.50% 03/2020 6,248
 6,194
 1.0
 6,248
One stop L + 6.50% 7.67% 03/2020 6,205
 6,155
 0.9
 6,205
Agility Recovery Solutions Inc.(4)
One stop L + 6.50% 
N/A(5)
 03/2020 
 (2) 
 
One stop L + 6.50% 
N/A (5)
 03/2020 
 (2) 
 
Bomgar Corporation#*
One stop L + 7.50% 8.65% 06/2022 28,497
 27,999
 4.5
 28,497
One stop L + 7.50% 8.80% 06/2022 28,425
 27,951
 4.1
 28,425
Bomgar Corporation(4)
One stop L + 7.50% 
N/A(5)
 06/2022 
 (2) 
 
One stop L + 7.50% 
N/A (5)
 06/2022 
 (2) 
 
CIBT Holdings, Inc*
Senior loan L + 5.25% 6.40% 06/2022 1,872
 1,856
 0.3
 1,872
CIBT Holdings, Inc.Senior loan L + 5.25% 
N/A(5)
 06/2022 
 
 
 
Clearwater Analytics, LLC#*
One stop L + 7.50% 8.50% 09/2022 9,052
 8,908
 1.4
 9,052
One stop L + 7.50% 8.55% 09/2022 8,913
 8,777
 1.3
 8,913
Clearwater Analytics, LLCOne stop L + 7.50% 8.50% 09/2022 24
 22
 
 24
One stop L + 7.50% 8.72% 09/2022 11
 9
 
 11
Daxko Acquisition Corporation#
One stop L + 6.50% 7.50% 09/2022 8,445
 8,329
 1.3
 8,445
One stop L + 6.50% 7.73% 09/2022 8,424
 8,314
 1.2
 8,424
Daxko Acquisition CorporationOne stop L + 6.50% 
N/A(5)
 09/2022 
 
 
 
One stop L + 6.50% 
N/A (5)
 09/2022 
 
 
 
DISA Holdings Acquisition Subsidiary Corp.*Senior loan L + 4.50% 5.50% 12/2020 1,368
 1,358
 0.2
 1,340
Senior loan L + 4.25% 5.40% 12/2020 1,324
 1,315
 0.2
 1,324
DISA Holdings Acquisition Subsidiary Corp.#
Senior loan L + 4.25% 5.47% 12/2020 129
 128
 
 129
DISA Holdings Acquisition Subsidiary Corp.Senior loan L + 4.50% 5.65% 12/2020 48
 46
 
 42
Senior loan L + 4.25% 5.48% 12/2020 24
 22
 
 24
EGD Security Systems, LLC#*
One stop L + 6.25% 7.25% 06/2022 10,372
 10,259
 1.6
 10,372
One stop L + 6.25% 7.37% 06/2022 10,372
 10,265
 1.5
 10,372
EGD Security Systems, LLC*
One stop L + 6.25% 7.25% 06/2022 98
 97
 
 98
One stop L + 6.25% 7.55% 06/2022 98
 97
 
 98
EGD Security Systems, LLC(4)One stop L + 6.25% 7.25% 06/2022 25
 23
 
 25
EGD Security Systems, LLCOne stop L + 6.25% 7.37% 06/2022 30
 28
 
 30
EGD Security Systems, LLC(4)
One stop L + 6.25% 
N/A(5)
 06/2022 
 (1) 
 
One stop L + 6.25% 
N/A (5)
 06/2022 
 (1) 
 
HealthcareSource HR, Inc.#*
One stop L + 6.75% 7.90% 05/2020 9,841
 9,715
 1.6
 9,841
One stop L + 6.75% 8.05% 05/2020 9,816
 9,700
 1.4
 9,816
HealthcareSource HR, Inc.(4)
One stop L + 6.75% 
N/A(5)
 05/2020 
 (1) 
 
One stop L + 6.75% 
N/A (5)
 05/2020 
 (1) 
 
Host Analytics, Inc.One stop N/A 8.50% cash/ 2.25% PIK 02/2020 1,365
 1,352
 0.2
 1,365
One stop N/A 8.50% cash/
2.25% PIK
 08/2021 1,373
 1,360
 0.2
 1,373
Host Analytics, Inc.(4)One stop N/A 8.50% cash/ 2.25% PIK 08/2021 1,144
 1,080
 0.2
 1,144
Host Analytics, Inc.One stop N/A 8.50% cash/
2.25% PIK
 08/2021 1,151
 1,090
 0.2
 1,151
Host Analytics, Inc.(4)
One stop N/A 
N/A(5)
 02/2020 
 (3) 
 
One stop N/A 
N/A (5)
 08/2021 
 (3) 
 
III US Holdings, LLC(4)
One stop L + 6.00% 
N/A(5)
 09/2022 
 (1) 
 
One stop L + 6.00% 
N/A (5)
 09/2022 
 (1) 
 
Integration Appliance, Inc.One stop L + 8.25% 9.50% 09/2020 1,550
 1,538
 0.2
 1,550
One stop L + 8.25% 9.50% 09/2020 1,550
 1,539
 0.2
 1,550
Kinnser Software, Inc.#
One stop L + 6.50% 7.65% 12/2022 9,756
 9,640
 1.5
 9,756
Kinnser Software, Inc.(4)
One stop L + 6.50% 
N/A(5)
 12/2021 
 (1) 
 
Integration Appliance, Inc.One stop L + 8.25% 9.50% 09/2020 124
 123
 
 124
Integration Appliance, Inc.One stop L + 8.25% 9.50% 09/2020 13
 12
 
 13
Maverick Bidco Inc.#
One stop L + 6.25% 7.42% 04/2023 23,099
 22,643
 3.3
 22,753
Maverick Bidco Inc.One stop L + 6.25% 7.48% 04/2023 27
 25
 
 25
Maverick Bidco Inc.(4)
One stop L + 6.25% 
N/A (5)
 04/2023 
 (32) 
 
Netsmart Technologies, Inc.#
Senior loan L + 4.50% 5.65% 04/2023 1,641
 1,627
 0.3
 1,655
Senior loan L + 4.50% 5.80% 04/2023 1,637
 1,623
 0.2
 1,649
Netsmart Technologies, Inc.(4)
Senior loan L + 4.75% 
N/A(5)
 04/2023 
 (9) 
 
Senior loan L + 4.75% 
N/A (5)
 04/2023 
 (8) 
 
Professional Datasolutions, Inc.#
Senior loan L + 5.50% 6.50% 05/2022 3,788
 3,731
 0.6
 3,731
One stop L + 5.50% 6.73% 05/2022 3,788
 3,734
 0.6
 3,788
Professional Datasolutions, Inc.Senior loan L + 5.50% 
N/A(5)
 05/2022 
 
 
 
One stop L + 5.50% 
N/A (5)
 05/2022 
 
 
 
Project Alpha Intermediate Holding, Inc.#
One stop L + 8.25% 9.25% 08/2022 16,426
 15,982
 2.6
 16,426
PT Intermediate Holdings III, LLC#*
One stop L + 6.50% 7.50% 06/2022 23,390
 23,085
 3.7
 23,390
One stop L + 6.50% 7.80% 06/2022 23,332
 23,040
 3.3
 23,332
PT Intermediate Holdings III, LLC#
One stop L + 6.50% 7.50% 06/2022 2,310
 2,287
 0.4
 2,310
One stop L + 6.50% 7.80% 06/2022 2,304
 2,282
 0.3
 2,304
PT Intermediate Holdings III, LLCOne stop L + 6.50% 8.22% 06/2022 91
 88
 
 91
One stop L + 6.50% 8.19% 06/2022 143
 140
 
 143
Quickbase, Inc.#
One stop L + 7.50% 8.65% 04/2022 11,410
 11,219
 1.8
 11,410
One stop L + 7.50% 8.80% 04/2022 21,029
 20,679
 3.0
 20,818
Quickbase, Inc.(4)
One stop L + 7.50% 
N/A(5)
 04/2022 
 (2) 
 
One stop L + 7.50% 
N/A (5)
 04/2022 
 (2) 
 (1)
Saba Software, Inc.#
One stop L + 5.50% 6.73% 05/2023 26,572
 26,120
 3.7
 26,306
Saba Software, Inc.(4)
One stop L + 5.50% 
N/A (5)
 05/2023 
 (3) 
 (2)
Secure-24, LLC*
One stop L + 5.00% 6.00% 08/2019 1,801
 1,789
 0.3
 1,801
One stop L + 5.00% 6.30% 08/2019 1,796
 1,786
 0.3
 1,796
Secure-24, LLCOne stop L + 5.00% 
N/A(5)
 08/2019 
 
 
 
One stop L + 5.00% 
N/A (5)
 08/2019 
 
 
 
Severin Acquisition, LLC#
Senior loan L + 4.75% 5.90% 07/2021 8,589
 8,465
 1.3
 8,460
Senior loan L + 4.75% 6.05% 07/2021 8,568
 8,451
 1.2
 8,526
Severin Acquisition, LLC*
Senior loan L + 5.38% 6.52% 07/2021 1,434
 1,416
 0.2
 1,446
Senior loan L + 5.38% 6.68% 07/2021 1,430
 1,413
 0.2
 1,455
Severin Acquisition, LLC*
Senior loan L + 5.00% 6.30% 07/2021 1,274
 1,259
 0.2
 1,279


9

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31,June 30, 2017
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Diversified/Conglomerate Service - (continued)Diversified/Conglomerate Service - (continued)        Diversified/Conglomerate Service - (continued)        
Severin Acquisition, LLC*
Senior loan L + 5.00% 6.15% 07/2021 $1,277
 $1,261
 0.2
%$1,269
Severin Acquisition, LLC#
Senior loan L + 5.38% 6.52% 07/2021 976
 963
 0.2
 984
Senior loan L + 5.38% 6.68% 07/2021 $974
 $961
 0.1
%$990
Severin Acquisition, LLC*
Senior loan L + 4.88% 6.02% 07/2021 315
 311
 0.1
 312
Senior loan L + 4.88% 6.18% 07/2021 314
 310
 
 314
Severin Acquisition, LLC(4)
Senior loan L + 4.75% 
N/A(5)
 07/2021 
 (8) 
 (1)Senior loan L + 4.75% 
N/A (5)
 07/2021 
 (7) 
 
TA MHI Buyer, Inc.*
One stop L + 6.00% 7.15% 09/2021 6,589
 6,529
 1.0
 6,589
TA MHI Buyer, Inc.#
One stop L + 6.00% 7.15% 09/2021 4,301
 4,227
 0.7
 4,301
TA MHI Buyer, Inc.#
One stop L + 6.00% 7.15% 09/2021 1,027
 1,016
 0.2
 1,027
TA MHI Buyer, Inc.#
One stop L + 6.00% 7.15% 09/2021 534
 528
 0.1
 534
TA MHI Buyer, Inc.#
One stop L + 6.00% 7.15% 09/2021 190
 188
 
 190
TA MHI Buyer, Inc.One stop L + 6.00% 
N/A(5)
 09/2021 
 
 
 
Trintech, Inc.*
One stop L + 6.00% 7.04% 10/2021 8,787
 8,701
 1.4
 8,787
Switchfly, Inc.One stop L + 10.00% 9.66% cash/
1.50% PIK
 04/2020 3,193
 3,058
 0.4
 3,048
Switchfly, Inc.One stop L + 10.00% 
N/A (5)
 04/2020 
 
 
 
Trintech, Inc.#*
One stop L + 6.00% 7.17% 10/2021 9,871
 9,776
 1.4
 9,871
Trintech, Inc.One stop L + 6.00% 
N/A(5)
 10/2021 
 
 
 
One stop L + 6.00% 
N/A (5)
 10/2021 
 
 
 
Vendavo, Inc.One stop L + 8.50% 9.52% 10/2019 4,331
 4,301
 0.7
 4,257
One stop L + 8.50% 9.66% 10/2019 4,331
 4,304
 0.6
 4,253
Vendavo, Inc.(4)
One stop L + 8.50% 
N/A(5)
 10/2019 
 (2) 
 (6)One stop L + 8.50% 
N/A (5)
 10/2019 
 (2) 
 (6)
Vendor Credentialing Service LLC#*
One stop L + 6.00% 7.00% 11/2021 11,285
 11,148
 1.8
 11,285
One stop L + 6.00% 7.23% 11/2021 13,650
 13,471
 1.9
 13,650
Vendor Credentialing Service LLC(4)
One stop L + 6.00% 
N/A(5)
 11/2021 
 (1) 
 
One stop L + 6.00% 
N/A (5)
 11/2021 
 (1) 
 
Verisys Corporation#
One stop L + 6.75% 7.77% 01/2023 4,829
 4,759
 0.8
 4,781
One stop L + 6.75% 8.05% 01/2023 4,817
 4,750
 0.7
 4,817
Verisys Corporation(4)
One stop L + 6.75% 
N/A(5)
 01/2023 
 (1) 
 (1)One stop L + 6.75% 
N/A (5)
 01/2023 
 (1) 
 
Vitalyst, LLC#
Senior loan L + 5.00% 6.37% 09/2017 87
 87
 
 87
Senior loan L + 5.00% 6.25% 09/2017 86
 86
 
 86
Vitalyst, LLCSenior loan L + 5.00% 
N/A(5)
 09/2017 
 
 
 
Senior loan P + 4.00% 8.00% 09/2017 2
 2
 
 2
Workforce Software, LLCOne stop L + 10.50% 4.51% cash/ 7.00% PIK 06/2021 22,116
 21,982
 3.5
 22,116
One stop L + 10.50% 4.66% cash/
7.00% PIK
 06/2021 22,507
 22,381
 3.2
 22,507
Workforce Software, LLCOne stop L + 10.50% 
N/A(5)
 06/2021 
 
 
 
One stop L + 10.50% 
N/A (5)
 06/2021 
 
 
 
Xmatters, Inc. and Alarmpoint, Inc.One stop L + 9.25% 9.50% cash/ 0.75% PIK 08/2021 4,644
 4,568
 0.7
 4,644
One stop L + 9.25% 9.72% cash/
0.75% PIK
 08/2021 4,653
 4,582
 0.7
 4,653
Xmatters, Inc. and Alarmpoint, Inc.One stop L + 9.25% 
N/A(5)
 08/2021 
 
 
 
One stop L + 9.25% 
N/A (5)
 08/2021 
 
 
 
 234,254
 230,956
 37.0
 233,927
 259,317
 255,578
 36.8
 258,276
Ecological                
Pace Analytical Services, LLC#*
One stop L + 6.25% 7.25% 09/2022 15,297
 15,051
 2.4
 15,297
One stop L + 6.00% 7.23% 09/2022 15,258
 15,024
 2.2
 15,106
Pace Analytical Services, LLC#
One stop L + 6.00% 7.30% 09/2022 1,419
 1,397
 0.2
 1,405
Pace Analytical Services, LLCOne stop L + 6.00% 7.26% 09/2022 350
 345
 
 346
Pace Analytical Services, LLCOne stop L + 6.25% 7.25% 09/2022 12
 6
 
 12
One stop L + 6.00% 7.22% 09/2022 25
 24
 
 24
Pace Analytical Services, LLC(4)
One stop L + 6.25% 
N/A(5)
 09/2022 
 (2) 
 
One stop L + 6.00% 
N/A (5)
 09/2022 
 (50) 
 (33)
WRE Holding Corp.#Senior loan L + 4.75% 6.09% 01/2023 1,325
 1,310
 0.2
 1,312
WRE Holding Corp.Senior loan L + 4.75% 
N/A (5)
 01/2023 
 
 
 
WRE Holding Corp.(4)
Senior loan L + 4.75% 
N/A (5)
 01/2023 
 (3) 
 (3)
WRE Holding Corp.(4)
Senior loan L + 4.75% 
N/A (5)
 01/2023 
 (24) 
 (21)
 15,309
 15,055
 2.4
 15,309
 18,377
 18,023
 2.6
 18,136
Electronics              
   
   
   
              
   
   
   
Appriss Holdings, Inc.#*
Senior loan L + 5.25% 6.40% 11/2020 10,271
 10,184
 1.6
 10,271
Senior loan L + 5.25% 6.55% 11/2020 10,244
 10,165
 1.5
 10,244
Appriss Holdings, Inc.Senior loan L + 5.25% 6.40% 11/2020 896
 887
 0.1
 896
Senior loan L + 5.25% 6.50% 11/2020 896
 888
 0.1
 896
Compusearch Software Holdings, Inc.*
Senior loan L + 4.25% 5.28% 05/2021 713
 712
 0.1
 713
Senior loan L + 4.25% 5.43% 05/2021 709
 708
 0.1
 709
Diligent Corporation#*
One stop L + 6.75% 7.75% 04/2022 31,859
 31,182
 5.1
 32,031
One stop L + 6.25% 7.55% 04/2022 31,779
 31,059
 4.5
 31,302
Diligent Corporation#*
One stop L + 6.25% 7.25% 04/2022 8,934
 8,809
 1.4
 8,819
One stop L + 6.25% 7.55% 04/2022 8,913
 8,772
 1.2
 8,779
Diligent Corporation#
One stop L + 6.25% 7.55% 04/2022 7,885
 7,770
 1.1
 7,767
Diligent Corporation(4)
One stop L + 6.75% 
N/A(5)
 04/2022 
 (2) 
 
One stop L + 6.75% 
N/A (5)
 04/2022 
 (2) 
 (2)
ECI Acquisition Holdings, Inc.*
One stop L + 6.25% 7.40% 03/2019 7,112
 7,112
 1.1
 7,112
One stop L + 6.25% 7.55% 03/2019 6,945
 6,945
 1.0
 6,945
ECI Acquisition Holdings, Inc.#
One stop L + 6.25% 7.40% 03/2019 460
 460
 0.1
 460
One stop L + 6.25% 7.55% 03/2019 450
 450
 0.1
 450
ECI Acquisition Holdings, Inc.One stop L + 6.25% 
N/A(5)
 03/2019 
 
 
 
One stop L + 6.25% 
N/A (5)
 03/2019 
 
 
 
Gamma Technologies, LLC*
One stop L + 5.00% 6.00% 06/2021 4,962
 4,927
 0.8
 4,962
One stop L + 5.00% 6.23% 06/2021 4,949
 4,916
 0.7
 4,949
Gamma Technologies, LLC(4)
One stop L + 5.00% 
N/A(5)
 06/2021 
 (1) 
 
One stop L + 5.00% 
N/A (5)
 06/2021 
 (1) 
 
LD Intermediate Holdings, Inc.*
Senior loan L + 5.88% 6.88% 12/2022 2,916
 2,693
 0.4
 2,795
Senior loan L + 5.88% 7.06% 12/2022 2,897
 2,685
 0.4
 2,756
Park Place Technologies LLC#*
One stop L + 5.00% 6.15% 06/2022 13,882
 13,724
 2.2
 13,882
One stop L + 5.00% 6.30% 06/2022 13,562
 13,413
 1.9
 13,562
Park Place Technologies LLC(4)
One stop L + 5.00% 
N/A(5)
 06/2022 
 (2) 
 
One stop L + 5.00% 
N/A (5)
 06/2022 
 (2) 
 
SEI, Inc.#
Senior loan L + 4.75% 5.75% 07/2021 666
 660
 0.1
 666
Senior loan L + 4.75% 5.98% 07/2021 3,164
 3,134
 0.4
 3,132
Sloan Company, Inc., The#
One stop L + 7.25% 8.40% 04/2020 3,608
 3,566
 0.6
 3,427
One stop L + 7.25% 8.55% 04/2020 3,599
 3,560
 0.5
 3,419
Sloan Company, Inc., TheOne stop L + 7.25% 8.33% 04/2020 21
 21
 
 19
One stop L + 7.25% 8.46% 04/2020 20
 20
 
 17
Sovos Compliance#*
One stop L + 7.25% 8.40% 03/2022 32,586
 32,047
 5.2
 32,586
One stop L + 7.25% 8.48% 03/2022 32,503
 31,992
 4.6
 32,503
Sovos Compliance(4)
One stop L + 7.25% 
N/A(5)
 03/2022 
 (1) 
 
One stop L + 7.25% 
N/A (5)
 03/2022 
 (1) 
 
Sparta Holding Corporation*
One stop L + 5.50% 6.73% 07/2020 695
 695
 0.1
 695


10

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31,June 30, 2017
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Electronics - (continued)                
Sparta Holding Corporation*
One stop L + 5.50% 6.65% 07/2020 $695
 $695
 0.1
%$695
Sparta Holding CorporationOne stop L + 5.50% 
N/A(5)
 07/2020 
 
 
 
One stop L + 5.50% 
N/A (5)
 07/2020 $
 $
 
%$
 119,581
 117,673
 18.9
 119,334
 129,210
 127,166
 18.2
 128,123
Grocery                
Teasdale Quality Foods, Inc.#
Senior loan L + 4.75% 5.78% 10/2020 170
 168
 
 173
Senior loan L + 4.75% 5.75% 10/2020 859
 855
 0.2
 855
Teasdale Quality Foods, Inc.#
Senior loan L + 4.75% 5.93% 10/2020 168
 165
 
 167
Teasdale Quality Foods, Inc.*
Senior loan L + 4.75% 5.92% 10/2020 127
 126
 
 129
Senior loan L + 4.75% 6.05% 10/2020 126
 125
 
 125
Teasdale Quality Foods, Inc.#
Senior loan L + 4.75% 5.92% 10/2020 62
 61
 
 61
 297
 294
 
 302
 1,215
 1,206
 0.2
 1,208
Healthcare, Education and Childcare              
   
   
   
              
   
   
   
Active Day, Inc.#*
One stop L + 6.00% 7.00% 12/2021 11,584
 11,424
 1.8
 11,584
One stop L + 6.00% 7.23% 12/2021 11,555
 11,404
 1.6
 11,555
Active Day, Inc.*
One stop L + 6.00% 7.00% 12/2021 894
 887
 0.1
 894
One stop L + 6.00% 7.23% 12/2021 891
 885
 0.1
 891
Active Day, Inc.(4)
One stop L + 6.00% 
N/A(5)
 12/2021 
 (1) 
 
One stop P + 5.00% 9.25% 12/2021 573
 553
 0.1
 573
Active Day, Inc.(4)
One stop L + 6.00% 
N/A(5)
 12/2021 
 (21) 
 
One stop L + 6.00% 
N/A (5)
 12/2021 
 (1) 
 
Acuity Eyecare Holdings, LLC#
One stop P + 5.75% 9.75% 03/2022 4,853
 4,781
 0.8
 4,805
One stop L + 6.75% 7.95% 03/2022 4,841
 4,772
 0.7
 4,841
Acuity Eyecare Holdings, LLC(4)
One stop L + 6.75% 
N/A(5)
 03/2022 
 (1) 
 
One stop L + 6.75% 7.98% 03/2022 811
 765
 0.1
 811
Acuity Eyecare Holdings, LLC(4)
One stop L + 6.75% 
N/A(5)
 03/2022 
 (48) 
 (32)One stop L + 6.75% 
N/A (5)
 03/2022 
 (1) 
 
ADCS Clinics Intermediate Holdings, LLC#
One stop L + 5.75% 6.90% 05/2022 22,016
 21,638
 3.5
 22,016
One stop L + 5.75% 7.05% 05/2022 21,960
 21,601
 3.1
 21,960
ADCS Clinics Intermediate Holdings, LLC#
One stop L + 5.75% 6.90% 05/2022 109
 108
 
 109
One stop L + 5.75% 7.05% 05/2022 109
 108
 
 109
ADCS Clinics Intermediate Holdings, LLCOne stop P + 4.75% 9.00% 05/2022 48
 46
 
 48
ADCS Clinics Intermediate Holdings, LLC*
One stop L + 5.75% 6.90% 05/2022 32
 32
 
 32
One stop L + 5.75% 7.05% 05/2022 32
 32
 
 32
ADCS Clinics Intermediate Holdings, LLCOne stop P + 4.75% 8.75% 05/2022 33
 31
 
 33
ADCS Clinics Intermediate Holdings, LLCOne stop P + 4.75% 8.75% 05/2022 5
 1
 
 5
One stop P + 4.75% 9.00% 05/2022 5
 1
 
 5
Advanced Pain Management Holdings, Inc.#
Senior loan L + 5.00% 6.25% 02/2018 5,800
 5,798
 0.8
 5,336
Senior loan L + 5.00% 6.25% 02/2018 5,800
 5,799
 0.7
 5,220
Advanced Pain Management Holdings, Inc.#
Senior loan L + 5.00% 6.25% 02/2018 397
 396
 0.1
 365
Senior loan L + 5.00% 6.25% 02/2018 397
 397
 0.1
 357
Advanced Pain Management Holdings, Inc.Senior loan L + 5.00% 
N/A(5)
 02/2018 
 
 
 
Senior loan L + 5.00% 
N/A (5)
 02/2018 
 
 
 
Agilitas USA, Inc.*
Senior loan L + 4.00% 5.00% 10/2020 509
 506
 0.1
 509
Agilitas USA, Inc.#
One stop L + 6.00% 7.16% 04/2022 1,981
 1,962
 0.3
 1,961
Agilitas USA, Inc.(4)
One stop L + 6.00% 
N/A (5)
 04/2022 
 (1) 
 (1)
Agilitas USA, Inc.(4)
One stop L + 6.00% 
N/A (5)
 04/2022 
 (16) 
 
Apothecary Products, LLC*
Senior loan L + 4.00% 5.29% 02/2019 1,857
 1,857
 0.3
 1,857
Senior loan L + 4.00% 5.72% 02/2019 1,857
 1,857
 0.3
 1,857
Apothecary Products, LLCSenior loan L + 4.00% 5.35% 02/2019 472
 472
 0.1
 472
Senior loan L + 4.00% 5.35% 02/2019 367
 367
 0.1
 367
Aris Teleradiology Company, LLC#*
Senior loan L + 5.50% 6.65% 03/2021 2,519
 2,497
 0.4
 2,519
Senior loan L + 5.50% 6.80% 03/2021 2,513
 2,492
 0.3
 2,312
Aris Teleradiology Company, LLCSenior loan L + 5.50% 6.50% 03/2021 15
 15
 
 15
Senior loan L + 5.50% 6.66% 03/2021 25
 25
 
 23
Avalign Technologies, Inc.*
Senior loan L + 4.50% 5.50% 07/2021 756
 754
 0.1
 756
Senior loan L + 4.50% 5.73% 07/2021 745
 742
 0.1
 745
BIORECLAMATIONIVT, LLC#*
One stop L + 5.75% 6.75% 01/2021 12,664
 12,496
 2.0
 12,664
One stop L + 5.75% 6.98% 01/2021 12,459
 12,303
 1.8
 12,459
BIORECLAMATIONIVT, LLC(4)
One stop L + 5.75% 
N/A(5)
 01/2021 
 (1) 
 
One stop L + 5.75% 
N/A (5)
 01/2021 
 (1) 
 
California Cryobank, LLC*
One stop L + 5.50% 6.65% 08/2019 2,647
 2,647
 0.4
 2,647
One stop L + 5.50% 6.80% 08/2019 2,641
 2,641
 0.4
 2,641
California Cryobank, LLC*
One stop L + 5.50% 6.50% 08/2019 1,231
 1,214
 0.2
 1,231
One stop L + 5.50% 6.80% 08/2019 1,228
 1,213
 0.2
 1,228
California Cryobank, LLC*
One stop L + 5.50% 6.65% 08/2019 359
 359
 0.1
 359
One stop L + 5.50% 6.80% 08/2019 355
 355
 0.1
 355
California Cryobank, LLCOne stop L + 5.50% 
N/A(5)
 08/2019 
 
 
 
One stop L + 5.50% 
N/A (5)
 08/2019 
 
 
 
Certara L.P.#*
One stop L + 5.50% 6.65% 12/2018 2,334
 2,317
 0.4
 2,317
One stop L + 5.50% 6.80% 12/2018 2,329
 2,314
 0.3
 2,329
CLP Healthcare Services, Inc.*
Senior loan L + 5.25% 6.40% 12/2020 941
 933
 0.1
 941
Senior loan L + 5.00% 6.30% 12/2020 939
 932
 0.1
 920
Curo Health Services LLC#
Senior loan L + 4.75% 5.79% 02/2022 831
 831
 0.1
 838
Senior loan L + 4.75% 5.93% 02/2022 829
 829
 0.1
 840
DCA Investment Holding, LLC#*
One stop L + 5.25% 6.25% 07/2021 14,676
 14,537
 2.3
 14,676
One stop L + 5.25% 6.48% 07/2021 14,639
 14,508
 2.1
 14,639
DCA Investment Holding, LLC#*
One stop L + 5.25% 6.25% 07/2021 13,694
 13,523
 2.2
 13,694
One stop L + 5.25% 6.48% 07/2021 13,660
 13,498
 1.9
 13,660
DCA Investment Holding, LLC#*
One stop L + 5.25% 6.25% 07/2021 6,134
 6,024
 1.0
 6,134
One stop L + 5.25% 6.48% 07/2021 6,119
 6,015
 0.9
 6,119
DCA Investment Holding, LLCOne stop P + 4.25% 8.25% 07/2021 354
 339
 0.1
 354
One stop P + 4.25% 8.50% 07/2021 377
 364
 0.1
 377
DCA Investment Holding, LLC(4)
One stop L + 5.25% 
N/A(5)
 07/2021 
 (4) 
 
One stop L + 5.25% 
N/A (5)
 07/2021 
 (3) 
 
Deca Dental Management LLCOne stop L + 6.25% 7.40% 07/2020 7,558
 7,482
 1.2
 7,558
One stop L + 6.25% 7.55% 07/2020 7,486
 7,417
 1.1
 7,486
Deca Dental Management LLCOne stop L + 6.25% 7.34% 07/2020 919
 913
 0.1
 919
Deca Dental Management LLC*
One stop L + 6.25% 7.48% 07/2020 911
 905
 0.1
 911
Deca Dental Management LLCOne stop L + 6.25% 7.25% 07/2020 50
 50
 
 50
One stop L + 6.25% 7.48% 07/2020 50
 50
 
 50
Deca Dental Management LLC(4)
One stop L + 6.25% 
N/A(5)
 07/2020 
 (8) 
 
One stop L + 6.25% 
N/A (5)
 07/2020 
 (7) 
 
Dental Holdings Corporation*
One stop L + 5.50% 6.50% 02/2020 3,369
 3,336
 0.5
 3,369
One stop L + 5.50% 6.67% 02/2020 3,314
 3,283
 0.5
 3,314
Dental Holdings CorporationOne stop L + 5.50% 6.52% 02/2020 513
 507
 0.1
 513
One stop L + 5.50% 6.70% 02/2020 505
 499
 0.1
 505
Dental Holdings Corporation(4)
One stop L + 5.50% 
N/A(5)
 02/2020 
 (5) 
 
Dental Holdings CorporationOne stop L + 5.50% 6.70% 02/2020 98
 94
 
 98
eSolutions, Inc.#*
One stop L + 6.50% 7.73% 03/2022 15,153
 14,973
 2.1
 15,001
eSolutions, Inc.(4)
One stop L + 6.50% 
N/A (5)
 03/2022 
 (1) 
 (1)


11

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31,June 30, 2017
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Healthcare, Education and Childcare - (continued)Healthcare, Education and Childcare - (continued)        Healthcare, Education and Childcare - (continued)        
eSolutions, Inc.#*
One stop L + 6.50% 7.50% 03/2022 $11,629
 $11,508
 1.8
%$11,629
eSolutions, Inc.(4)
One stop L + 6.50% 
N/A(5)
 03/2022 
 (1) 
 
Excelligence Learning Corporation#
One stop L + 6.00% 7.21% 04/2023 $6,315
 $6,254
 0.9
%$6,252
Eyecare Services Partners Holdings LLC#
One stop L + 6.25% 7.43% 05/2023 10,520
 10,339
 1.5
 10,414
Eyecare Services Partners Holdings LLC(4)
One stop L + 6.25% 
N/A (5)
 05/2023 
 (3) 
 (2)
Eyecare Services Partners Holdings LLC(4)
One stop L + 6.25% 
N/A (5)
 05/2023 
 (81) 
 
Immucor, Inc. #
Senior loan L + 5.00% 6.00% 08/2018 2,244
 2,221
 0.3
 2,267
Kareo, Inc.One stop L + 9.00% 10.29% 06/2022 5,755
 5,495
 0.8
 5,697
Kareo, Inc.One stop L + 9.00% 
N/A (5)
 06/2022 
 
 
 
Katena Holdings, Inc.*
One stop L + 6.25% 7.27% 06/2021 4,544
 4,510
 0.7
 4,544
One stop L + 6.25% 7.55% 06/2021 4,532
 4,501
 0.6
 4,532
Katena Holdings, Inc.*
One stop L + 6.25% 7.27% 06/2021 443
 440
 0.1
 443
One stop L + 6.25% 7.55% 06/2021 442
 439
 0.1
 442
Katena Holdings, Inc.One stop P + 5.25% 9.25% 06/2021 38
 37
 
 38
One stop P + 5.25% 9.50% 06/2021 54
 53
 
 54
Lombart Brothers, Inc.#
One stop L + 6.75% 7.90% 04/2022 3,394
 3,336
 0.5
 3,343
One stop L + 6.75% 8.05% 04/2022 3,386
 3,331
 0.5
 3,386
Lombart Brothers, Inc.#(7)
One stop L + 6.75% 7.90% 04/2022 1,558
 1,531
 0.2
 1,534
One stop L + 6.75% 8.05% 04/2022 1,554
 1,529
 0.2
 1,554
Lombart Brothers, Inc.(7)
One stop L + 6.75% 7.75% 04/2022 2
 2
 
 2
One stop L + 6.75% 
N/A (5)
 04/2022 
 
 
 
Lombart Brothers, Inc.(4)
One stop L + 6.75% 
N/A(5)
 04/2022 
 (1) 
 (1)One stop L + 6.75% 
N/A (5)
 04/2022 
 (1) 
 
Maverick Healthcare Group, LLC#
Senior loan L + 7.50% 7.25% cash/ 2.00% PIK 04/2017 637
 637
 0.1
 611
Senior loan P + 8.50% 10.75% cash/
2.00% PIK
 12/2017 639
 639
 0.1
 594
Maverick Healthcare Group, LLCSenior loan P + 6.50% 5.00% cash/ 5.50% PIK 04/2017 27
 27
 
 27
Senior loan P + 6.50% 5.25% cash/
5.50% PIK
 12/2017 27
 27
 
 27
MWD Management, LLC & MWD Services, Inc.#
One stop L + 5.25% 6.55% 06/2023 1,312
 1,295
 0.2
 1,298
MWD Management, LLC & MWD Services, Inc.(4)
One stop L + 5.25% 
N/A (5)
 06/2022 
 (1) 
 (1)
MWD Management, LLC & MWD Services, Inc.(4)
One stop L + 5.25% 
N/A (5)
 06/2023 
 (42) 
 
Oliver Street Dermatology Holdings, LLC#*
One stop L + 6.50% 7.65% 05/2022 8,850
 8,710
 1.4
 8,850
One stop L + 6.50% 7.80% 05/2022 8,828
 8,695
 1.3
 8,828
Oliver Street Dermatology Holdings, LLCOne stop L + 6.50% 7.69% 05/2022 160
 141
 
 160
Oliver Street Dermatology Holdings, LLCOne stop L + 6.50% 8.10% 05/2022 74
 73
 
 74
Oliver Street Dermatology Holdings, LLCOne stop P + 5.50% 8.64% 05/2022 54
 53
 
 54
One stop L + 6.50% 7.67% 05/2022 46
 45
 
 46
Oliver Street Dermatology Holdings, LLC*
One stop L + 6.50% 7.54% 05/2022 42
 42
 
 42
One stop L + 6.50% 7.80% 05/2022 42
 41
 
 42
Oliver Street Dermatology Holdings, LLCOne stop L + 6.50% 7.53% 05/2022 33
 32
 
 33
One stop L + 6.50% 7.80% 05/2022 33
 32
 
 33
Oliver Street Dermatology Holdings, LLCOne stop L + 6.50% 7.53% 05/2022 30
 30
 
 30
One stop L + 6.50% 7.66% 05/2022 30
 30
 
 30
Oliver Street Dermatology Holdings, LLC(4)
One stop L + 6.50% 
N/A(5)
 05/2022 
 (1) 
 
Pinnacle Treatment Centers, Inc.#
One stop L + 6.25% 7.25% 08/2021 9,797
 9,647
 1.6
 9,797
One stop L + 6.25% 7.37% 08/2021 9,772
 9,632
 1.4
 9,772
Pinnacle Treatment Centers, Inc.One stop P + 5.00% 9.00% 08/2021 18
 16
 
 18
One stop P + 5.00% 9.25% 08/2021 22
 21
 
 22
Pinnacle Treatment Centers, Inc.(4)
One stop L + 6.25% 
N/A(5)
 08/2021 
 (2) 
 
One stop L + 6.25% 
N/A (5)
 08/2021 
 (2) 
 
PPT Management Holdings, LLC#*
One stop L + 6.00% 7.15% 12/2022 11,771
 11,518
 1.9
 11,771
One stop L + 6.00% 7.30% 12/2022 11,741
 11,500
 1.7
 11,741
PPT Management Holdings, LLCOne stop L + 6.00% 7.33% 12/2022 120
 116
 
 120
One stop L + 6.00% 7.22% 12/2022 150
 146
 
 150
PPT Management Holdings, LLCOne stop L + 6.00% 
N/A(5)
 12/2022 
 
 
 
One stop L + 6.00% 7.30% 12/2022 110
 107
 
 110
Premise Health Holding Corp.*
One stop L + 4.50% 5.65% 06/2020 1,997
 1,997
 0.3
 1,997
One stop L + 4.50% 5.80% 06/2020 1,992
 1,992
 0.3
 1,992
Premise Health Holding Corp.One stop L + 4.50% 
N/A(5)
 06/2020 
 
 
 
One stop L + 4.50% 
N/A (5)
 06/2020 
 
 
 
Pyramid Healthcare, Inc.One stop L + 6.50% 7.50% 08/2019 20
 18
 
 20
One stop L + 6.50% 7.72% 08/2019 84
 82
 
 84
Radiology Partners, Inc.#
One stop L + 5.75% 6.90% 09/2020 4,421
 4,377
 0.7
 4,421
One stop L + 5.75% 7.05% 09/2020 4,410
 4,369
 0.6
 4,410
Radiology Partners, Inc.One stop L + 5.75% 6.90% 09/2020 100
 99
 
 100
One stop L + 5.75% 7.05% 09/2020 100
 99
 
 100
Reliant Pro ReHab, LLC*
Senior loan L + 5.00% 6.15% 12/2017 1,162
 1,160
 0.2
 1,162
Senior loan L + 5.00% 6.30% 12/2017 1,153
 1,152
 0.2
 1,153
Reliant Pro ReHab, LLCSenior loan P + 4.00% 8.00% 12/2017 73
 73
 
 73
Senior loan P + 4.00% 8.25% 12/2017 94
 94
 
 94
Riverchase MSO, LLC*
Senior loan L + 5.25% 6.40% 10/2022 4,000
 3,944
 0.6
 4,000
Riverchase MSO, LLC#*
Senior loan L + 5.25% 6.55% 10/2022 4,953
 4,886
 0.7
 4,953
Riverchase MSO, LLCSenior loan L + 5.25% 6.40% 10/2022 15
 14
 
 15
Senior loan L + 5.25% 6.55% 10/2022 21
 20
 
 21
RXH Buyer Corporation#
One stop L + 5.75% 6.90% 09/2021 11,191
 11,025
 1.7
 10,631
One stop L + 5.75% 7.05% 09/2021 11,162
 11,006
 1.6
 10,939
RXH Buyer Corporation*
One stop L + 5.75% 6.90% 09/2021 1,266
 1,257
 0.2
 1,203
One stop L + 5.75% 7.05% 09/2021 1,263
 1,254
 0.2
 1,238
RXH Buyer CorporationOne stop P + 4.75% 8.75% 09/2021 22
 20
 
 12
One stop L + 5.75% 7.58% 09/2021 55
 52
 
 51
RXH Buyer Corporation(4)
One stop L + 5.75% 
N/A(5)
 09/2021 
 (17) 
 (27)
SLMP, LLC#
One stop L + 6.00% 7.23% 05/2023 2,895
 2,853
 0.4
 2,866
SLMP, LLCOne stop N/A 7.50% PIK 05/2027 109
 109
 
 109
SLMP, LLC(4)
One stop L + 6.00% 
N/A (5)
 05/2023 
 (1) 
 (1)
SLMP, LLC(4)
One stop L + 6.00% 
N/A (5)
 05/2023 
 (28) 
 
Spear Education, LLC*
One stop L + 5.75% 6.75% 08/2019 3,552
 3,538
 0.6
 3,552
One stop L + 5.75% 6.90% 08/2019 3,513
 3,501
 0.5
 3,513
Spear Education, LLCOne stop L + 5.75% 6.75% 08/2019 182
 181
 
 182
One stop L + 5.75% 6.90% 08/2019 180
 179
 
 180
Spear Education, LLC(4)
One stop L + 5.75% 
N/A(5)
 08/2019 
 (1) 
 
Spear Education, LLCOne stop L + 5.75% 
N/A (5)
 08/2019 
 
 
 
Summit Behavioral Holdings I, LLC*
One stop L + 5.00% 6.02% 06/2021 4,158
 4,113
 0.7
 4,158
One stop L + 5.00% 6.23% 06/2021 4,147
 4,105
 0.6
 4,147
Summit Behavioral Holdings I, LLC(4)
One stop L + 5.00% 
N/A(5)
 06/2021 
 (1) 
 
Summit Behavioral Holdings I, LLC(4)
One stop L + 5.00% 
N/A(5)
 06/2021 
 (1) 
 
Surgical Information Systems, LLC*
Senior loan L + 3.00% 4.16% 09/2018 170
 170
 
 170
U.S. Anesthesia Partners, Inc.*
One stop L + 5.00% 6.01% 12/2019 3,760
 3,760
 0.6
 3,760
U.S. Anesthesia Partners, Inc.#
Senior loan L + 5.00% 6.00% 12/2019 1,024
 1,014
 0.2
 1,024
WHCG Management, LLC#*
Senior loan L + 4.75% 5.90% 03/2023 6,207
 6,130
 1.0
 6,145
WHCG Management, LLC(4)
Senior loan L + 4.75% 
N/A(5)
 03/2023 
 (1) 
 (1)
WHCG Management, LLC(4)
Senior loan L + 4.75% 
N/A(5)
 03/2023 
 (56) 
 (76)
WIRB-Copernicus Group, Inc.#
Senior loan L + 5.00% 6.15% 08/2022 9,434
 9,350
 1.5
 9,387
WIRB-Copernicus Group, Inc.#
Senior loan L + 5.00% 6.15% 08/2022 5,449
 5,401
 0.9
 5,421


12

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31,June 30, 2017
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Healthcare, Education and Childcare - (continued)Healthcare, Education and Childcare - (continued)        Healthcare, Education and Childcare - (continued)        
Summit Behavioral Holdings I, LLCOne stop L + 5.00% 6.23% 06/2021 $114
 $112
 
%$114
Summit Behavioral Holdings I, LLCOne stop L + 5.00% 6.23% 06/2021 15
 15
 
 15
WHCG Management, LLC#*
Senior loan L + 4.75% 6.05% 03/2023 6,207
 6,134
 0.9
 6,207
WHCG Management, LLC(4)
Senior loan L + 4.75% 
N/A (5)
 03/2023 
 (1) 
 
WHCG Management, LLC(4)
Senior loan L + 4.75% 
N/A (5)
 03/2023 
 (54) 
 
WIRB-Copernicus Group, Inc.#
Senior loan L + 5.00% 6.30% 08/2022 9,410
 9,330
 1.3
 9,410
WIRB-Copernicus Group, Inc.#
Senior loan L + 5.00% 6.30% 08/2022 5,435
 5,390
 0.8
 5,435
WIRB-Copernicus Group, Inc.Senior loan L + 5.00% 
N/A(5)
 08/2022 $
 $
 
%$
Senior loan L + 5.00% 
N/A (5)
 08/2022 
 
 
 
Young Innovations, Inc.#
Senior loan L + 5.00% 6.30% 01/2019 134
 133
 
 134
 231,315
 228,367
 36.4
 229,753
 262,836
 259,209
 37.2
 261,283
Home and Office Furnishings, Housewares, and Durable Consumer                
1A Smart Start LLC#
Senior loan P + 3.50% 7.50% 02/2022 602
 599
 0.1
 601
Senior loan L + 4.50% 5.80% 02/2022 600
 597
 0.1
 599
CST Buyer Company*
Senior loan L + 6.25% 7.46% 03/2023 3,368
 3,276
 0.5
 3,275
Senior loan L + 6.25% 7.61% 03/2023 3,359
 3,272
 0.5
 3,359
CST Buyer Company(4)
Senior loan L + 6.25% 
N/A(5)
 03/2023 
 (1) 
 (1)Senior loan L + 6.25% 
N/A (5)
 03/2023 
 (1) 
 
Plano Molding Company, LLC#
One stop L + 7.50% 8.50% 05/2021 7,026
 6,945
 1.0
 6,464
One stop L + 7.50% 8.63% 05/2021 7,009
 6,933
 0.9
 6,588
 10,996
 10,819
 1.6
 10,339
 10,968
 10,801
 1.5
 10,546
Hotels, Motels, Inns, and Gaming              
   
   
   
              
   
   
   
Aimbridge Hospitality, LLC*
Senior loan L + 4.50% 5.75% 10/2018 390
 385
 0.1
 390
Aimbridge Hospitality, LLC#*
One stop L + 5.50% 6.72% 06/2022 11,072
 10,879
 1.6
 10,878
Aimbridge Hospitality, LLCOne stop L + 5.50% 6.72% 06/2022 302
 276
 
 279
Aimbridge Hospitality, LLC(4)
One stop L + 5.50% 
N/A (5)
 06/2022 
 (1) 
 (1)
         11,374
 11,154
 1.6
 11,156
Insurance                
Captive Resources Midco, LLC#*
One stop L + 5.75% 6.75% 06/2020 8,086
 8,019
 1.3
 8,086
One stop L + 5.75% 6.95% 06/2020 7,950
 7,888
 1.1
 7,950
Captive Resources Midco, LLC(4)
One stop L + 5.75% 
N/A(5)
 06/2020 
 (3) 
 
One stop L + 5.75% 
N/A (5)
 06/2020 
 (3) 
 
Captive Resources Midco, LLC(4)
One stop L + 5.75% 
N/A(5)
 06/2020 
 (8) 
 
One stop L + 5.75% 
N/A (5)
 06/2020 
 (8) 
 
Higginbotham Insurance Agency, Inc.*
Senior loan L + 5.00% 6.00% 11/2021 1,379
 1,369
 0.2
 1,379
Senior loan L + 5.00% 6.23% 11/2021 1,375
 1,366
 0.2
 1,375
Internet Pipeline, Inc.#*
One stop L + 7.25% 8.25% 08/2022 10,409
 10,271
 1.6
 10,409
One stop L + 7.25% 8.48% 08/2022 10,326
 10,170
 1.5
 10,223
Internet Pipeline, Inc.#*
One stop L + 6.25% 7.42% 08/2022 4,461
 4,417
 0.6
 4,417
Internet Pipeline, Inc.(4)
One stop L + 7.25% 
N/A(5)
 08/2021 
 (1) 
 
One stop L + 7.25% 
N/A (5)
 08/2021 
 (1) 
 
RSC Acquisition, Inc.#*
Senior loan L + 5.25% 6.40% 11/2022 539
 535
 0.1
 539
Senior loan L + 5.25% 6.55% 11/2022 4,013
 3,993
 0.6
 3,993
RSC Acquisition, Inc.(4)
Senior loan L + 5.25% 
N/A (5)
 11/2022 
 (34) 
 (36)
 20,413
 20,182
 3.2
 20,413
 28,125
 27,788
 4.0
 27,922
Leisure, Amusement, Motion Pictures, Entertainment                
Competitor Group, Inc.#
One stop L + 9.25% 5.00% cash/ 5.50% PIK 11/2018 436
 406
 0.1
 392
Competitor Group, Inc.One stop L + 9.25% 5.00% cash/ 5.50% PIK 11/2018 51
 48
 
 46
Competitor Group, Inc.One stop L + 9.25% 5.00% cash/ 5.50% PIK 11/2018 14
 14
 
 14
NFD Operating, LLC*
One stop L + 7.00% 8.25% 06/2021 2,181
 2,153
 0.4
 2,181
One stop L + 7.00% 8.25% 06/2021 2,175
 2,149
 0.3
 2,175
NFD Operating, LLCOne stop P + 5.75% 9.75% 06/2021 12
 12
 
 12
One stop L + 7.00% 
N/A (5)
 06/2021 
 
 
 
NFD Operating, LLC(4)
One stop L + 7.00% 
N/A(5)
 06/2021 
 (1) 
 
One stop L + 7.00% 
N/A (5)
 06/2021 
 (1) 
 
PADI Holdco, Inc.#
One stop L + 6.50% 7.80% 04/2023 25,593
 25,221
 3.6
 25,209
PADI Holdco, Inc.One stop L + 6.50% 7.80% 04/2022 53
 51
 
 51
Self Esteem Brands, LLC#*
Senior loan L + 4.75% 5.75% 02/2020 10,113
 10,036
 1.6
 10,011
Senior loan L + 4.75% 5.98% 02/2020 9,855
 9,786
 1.4
 9,855
Teaching Company, The#*
One stop L + 6.25% 7.25% 08/2020 12,148
 12,086
 1.9
 11,904
One stop L + 6.25% 7.37% 08/2020 12,117
 12,060
 1.7
 11,633
Teaching Company, TheOne stop L + 6.25% 7.51% 08/2020 58
 57
 
 55
One stop L + 6.25% 7.73% 08/2020 113
 112
 
 107
Titan Fitness, LLC*
One stop L + 7.00% 8.25% 09/2019 1,964
 1,964
 0.3
 1,964
One stop L + 7.00% 8.25% 09/2019 1,959
 1,959
 0.3
 1,959
Titan Fitness, LLCOne stop L + 7.00% 8.25% 09/2019 295
 293
 
 295
Titan Fitness, LLC#
One stop L + 7.00% 8.25% 09/2019 260
 260
 
 260
One stop L + 7.00% 8.25% 09/2019 259
 259
 
 259
Titan Fitness, LLCOne stop L + 7.00% 8.25% 09/2019 174
 169
 
 174
One stop L + 7.00% 
N/A (5)
 09/2019 
 
 
 
Titan Fitness, LLCOne stop P + 5.75% 9.75% 09/2019 136
 136
 
 136
Titan Fitness, LLC(4)
One stop L + 7.00% 
N/A (5)
 09/2019 
 (2) 
 
 27,547
 27,340
 4.3
 27,149
 52,419
 51,887
 7.3
 51,543
Mining, Steel, Iron and Non-Precious Metals                
Benetech, Inc.#
One stop L + 11.00% 10.25% cash/ 2.00% PIK 10/2017 196
 196
 
 177
One stop L + 11.00% 10.25% cash/
2.00% PIK
 08/2018 194
 194
 
 156
Benetech, Inc.(4)
One stop P + 9.75% 11.64% cash/ 2.00% PIK 10/2017 3
 3
 
 (2)
Benetech, Inc.One stop P + 9.75% 11.97% cash/
2.00% PIK
 08/2018 16
 16
 
 6
 199
 199
 
 175
 210
 210
 
 162
Oil and Gas        
Drilling Info, Inc.*
One stop L + 6.25% 7.28% 06/2020 3,900
 3,856
 0.6
 3,900
Drilling Info, Inc.*
One stop L + 6.35% 7.38% 06/2020 949
 935
 0.2
 949
 4,849
 4,791
 0.8
 4,849
        
Personal and Non Durable Consumer Products (Mfg. Only)        
Georgica Pine Clothiers, LLC*
One stop L + 5.50% 6.65% 11/2021 4,897
 4,859
 0.8
 4,897
Georgica Pine Clothiers, LLC#
One stop L + 5.50% 6.65% 11/2021 428
 424
 0.1
 428
Georgica Pine Clothiers, LLC*
One stop L + 5.50% 6.65% 11/2021 300
 297
 
 300
Georgica Pine Clothiers, LLCOne stop P + 4.50% 8.50% 11/2021 28
 27
 
 28
        


13

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31,June 30, 2017
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Personal and Non Durable Consumer Products (Mfg. Only) - (continued)        
Oil and Gas        
Drilling Info, Inc.*
One stop L + 6.15% 7.45% 06/2020 $3,803
 $3,764
 0.6
%$3,803
Drilling Info, Inc.*
One stop L + 6.25% 7.54% 06/2020 926
 913
 0.1
 926
 4,729
 4,677
 0.7
 4,729
Personal and Non Durable Consumer Products (Mfg. Only)        
Georgica Pine Clothiers, LLC*
One stop L + 5.50% 6.80% 11/2021 4,885
 4,849
 0.7
 4,885
Georgica Pine Clothiers, LLC#
One stop L + 5.50% 6.80% 11/2021 427
 423
 0.1
 427
Georgica Pine Clothiers, LLC*
One stop L + 5.50% 6.80% 11/2021 299
 297
 
 299
Georgica Pine Clothiers, LLCOne stop L + 5.50% 6.80% 11/2021 38
 37
 
 38
IMPLUS Footwear, LLC#
One stop L + 6.75% 8.04% 04/2021 13,912
 13,793
 2.0
 13,912
IMPLUS Footwear, LLC#
One stop L + 6.75% 7.91% 04/2021 2,449
 2,428
 0.4
 2,449
Massage Envy, LLC*
One stop L + 6.75% 7.90% 09/2020 $3,168
 $3,145
 0.5
%$3,168
One stop L + 6.75% 8.05% 09/2020 3,160
 3,139
 0.5
 3,160
Massage Envy, LLCOne stop L + 6.75% 7.93% 09/2020 100
 99
 
 100
Massage Envy, LLCOne stop L + 6.75% 7.97% 09/2020 72
 71
 
 72
Massage Envy, LLCOne stop L + 6.75% 7.79% 09/2020 100
 99
 
 100
One stop L + 6.75% 7.97% 09/2020 21
 20
 
 21
Massage Envy, LLCOne stop L + 6.75% 
N/A(5)
 09/2020 
 
 
 
One stop L + 6.75% 8.01% 09/2020 10
 10
 
 10
Orthotics Holdings, Inc.#
One stop L + 5.00% 6.00% 02/2020 3,713
 3,686
 0.6
 3,602
One stop L + 6.00% 7.23% 02/2020 3,704
 3,670
 0.5
 3,704
Orthotics Holdings, Inc.#(7)
One stop L + 5.00% 6.00% 02/2020 609
 604
 0.1
 590
One stop L + 6.00% 7.23% 02/2020 607
 602
 0.1
 607
Orthotics Holdings, Inc.(7)
One stop L + 5.00% 
N/A(5)
 02/2020 
 
 
 
Orthotics Holdings, Inc.(4)(7)
One stop L + 6.00% 
N/A (5)
 02/2020 
 (1) 
 
Orthotics Holdings, Inc.(4)
One stop L + 5.00% 
N/A(5)
 02/2020 
 (4) 
 
One stop L + 6.00% 
N/A (5)
 02/2020 
 (5) 
 
Team Technologies Acquisition Company*
Senior loan L + 5.00% 6.25% 12/2017 276
 276
 
 275
Senior loan L + 5.00% 6.25% 12/2017 269
 269
 
 268
Team Technologies Acquisition Company#
Senior loan L + 5.50% 6.76% 12/2017 51
 51
 
 51
Senior loan L + 5.50% 6.75% 12/2017 50
 50
 
 50
Team Technologies Acquisition CompanySenior loan L + 5.00% 
N/A(5)
 12/2017 
 
 
 
Senior loan L + 5.00% 
N/A (5)
 12/2017 
 
 
 
 13,570
 13,464
 2.1
 13,439
 30,003
 29,751
 4.3
 30,002
Personal, Food and Miscellaneous Services                
Clarkson Eyecare LLC#*
One stop L + 6.25% 7.40% 04/2021 17,278
 17,061
 2.7
 17,278
One stop L + 6.25% 7.55% 04/2021 17,234
 17,031
 2.4
 17,234
Clarkson Eyecare LLCOne stop L + 6.25% 7.40% 04/2021 8,572
 8,502
 1.4
 8,572
One stop L + 6.25% 7.55% 04/2021 8,551
 8,485
 1.2
 8,551
Clarkson Eyecare LLC#
One stop L + 6.25% 7.40% 04/2021 2,971
 2,947
 0.5
 2,971
One stop L + 6.25% 7.55% 04/2021 2,963
 2,941
 0.4
 2,963
Clarkson Eyecare LLC#
One stop L + 6.25% 7.40% 04/2021 2,530
 2,510
 0.4
 2,530
One stop L + 6.25% 7.55% 04/2021 2,523
 2,505
 0.4
 2,523
Clarkson Eyecare LLC#
One stop L + 6.25% 7.40% 04/2021 666
 666
 0.1
 666
One stop L + 6.25% 7.55% 04/2021 665
 665
 0.1
 665
Clarkson Eyecare LLCOne stop L + 6.25% 7.34% 04/2021 720
 663
 0.1
 720
One stop L + 6.25% 7.55% 04/2021 718
 664
 0.1
 718
Clarkson Eyecare LLC#
One stop L + 6.25% 7.40% 04/2021 492
 482
 0.1
 492
One stop L + 6.25% 7.55% 04/2021 490
 481
 0.1
 490
Clarkson Eyecare LLCOne stop L + 6.25% 7.40% 04/2021 277
 272
 
 277
One stop L + 6.25% 7.55% 04/2021 277
 272
 
 277
Community Veterinary Partners, LLC(4)
One stop L + 5.50% 
N/A(5)
 10/2021 
 (1) 
 
One stop L + 5.50% 
N/A (5)
 10/2021 
 (1) 
 
Ignite Restaurant Group, Inc (Joe's Crab Shack)*
One stop L + 7.00% 8.06% 02/2019 1,036
 1,036
 0.1
 777
Ignite Restaurant Group, Inc (Joe's Crab Shack)*(6)
One stop P + 6.00% 10.25% 02/2019 1,038
 1,039
 0.1
 395
PetVet Care Centers LLC#
Senior loan L + 4.75% 5.90% 12/2020 2,406
 2,385
 0.4
 2,406
One stop L + 6.00% 7.22% 06/2023 11,010
 10,902
 1.6
 10,900
PetVet Care Centers LLC*
Senior loan L + 4.75% 5.90% 12/2020 1,809
 1,781
 0.3
 1,809
PetVet Care Centers LLC*
Senior loan L + 4.75% 5.90% 12/2020 1,571
 1,558
 0.3
 1,571
PetVet Care Centers LLCSenior loan L + 4.75% 5.87% 12/2020 100
 99
 
 100
One stop L + 6.00% 7.22% 06/2023 14
 11
 
 11
PetVet Care Centers LLC(4)
Senior loan L + 4.75% 
N/A(5)
 12/2020 
 (4) 
 
One stop L + 6.00% 
N/A (5)
 06/2023 
 (59) 
 (60)
R.G. Barry Corporation#
Senior loan L + 5.00% 6.00% 09/2019 1,359
 1,359
 0.2
 1,346
R.G. Barry Corporation#Senior loan L + 5.00% 6.23% 09/2019 1,265
 1,265
 0.2
 1,265
Southern Veterinary Partners, LLC*
One stop L + 5.00% 6.13% 06/2020 1,585
 1,573
 0.2
 1,577
Southern Veterinary Partners, LLCOne stop L + 5.00% 
N/A (5)
 06/2020 
 
 
 
Southern Veterinary Partners, LLC(4)
One stop L + 5.00% 
N/A (5)
 06/2020 
 (19) 
 
Vetcor Professional Practices LLC#*
One stop L + 6.00% 7.15% 04/2021 27,415
 26,970
 4.3
 27,415
One stop L + 6.25% 7.55% 04/2021 27,346
 26,928
 3.9
 27,346
Vetcor Professional Practices LLCOne stop L + 6.25% 7.55% 04/2021 2,366
 2,329
 0.3
 2,366
Vetcor Professional Practices LLCOne stop L + 6.00% 7.15% 04/2021 2,372
 2,332
 0.4
 2,372
One stop L + 6.25% 7.55% 04/2021 1,622
 1,501
 0.2
 1,622
Vetcor Professional Practices LLC#
One stop L + 6.00% 7.15% 04/2021 631
 626
 0.1
 631
One stop L + 6.25% 7.55% 04/2021 630
 624
 0.1
 630
Vetcor Professional Practices LLC*
One stop L + 6.00% 7.15% 04/2021 626
 615
 0.1
 626
One stop L + 6.25% 7.55% 04/2021 624
 615
 0.1
 624
Vetcor Professional Practices LLCOne stop L + 6.00% 7.15% 04/2021 666
 537
 0.1
 666
Vetcor Professional Practices LLCOne stop L + 6.00% 7.15% 04/2021 491
 480
 0.1
 491
Vetcor Professional Practices LLCOne stop L + 6.00% 7.15% 04/2021 479
 471
 0.1
 479
Vetcor Professional Practices LLC*
One stop L + 6.25% 7.55% 04/2021 490
 490
 0.1
 490
Vetcor Professional Practices LLC*
One stop L + 6.25% 7.55% 04/2021 477
 470
 0.1
 477
Vetcor Professional Practices LLC*
One stop L + 6.00% 7.15% 04/2021 188
 187
 
 188
One stop L + 6.25% 7.55% 04/2021 188
 186
 
 188
Vetcor Professional Practices LLC*
One stop L + 6.00% 7.15% 04/2021 154
 153
 
 154
One stop L + 6.25% 7.55% 04/2021 154
 152
 
 154
Vetcor Professional Practices LLC(4)
One stop L + 6.00% 
N/A(5)
 04/2021 
 (4) 
 
One stop L + 6.25% 
N/A (5)
 04/2021 
 (4) 
 
Veterinary Specialists of North America, LLC#*
One stop L + 5.25% 6.28% 07/2021 3,871
 3,828
 0.6
 3,823
One stop L + 5.25% 6.42% 07/2021 3,862
 3,820
 0.5
 3,862
Veterinary Specialists of North America, LLC#
One stop L + 5.25% 6.28% 07/2021 33
 33
 
 33
Veterinary Specialists of North America, LLC(4)
One stop L + 5.25% 
N/A(5)
 07/2021 
 (2) 
 (2)
Veterinary Specialists of North America, LLC(4)
One stop L + 5.25% 
N/A(5)
 07/2021 
 (9) 
 (9)
Wetzel's Pretzels, LLC*
One stop L + 6.75% 7.75% 09/2021 6,354
 6,254
 1.0
 6,354
Wetzel's Pretzels, LLC(4)
One stop L + 6.75% 
N/A(5)
 09/2021 
 (1) 
 
 85,067
 83,786
 13.4
 84,736
Printing and Publishing        
Brandmuscle, Inc.#
Senior loan L + 5.00% 6.15% 12/2021 540
 536
 0.1
 545
Market Track, LLC#*
One stop L + 7.00% 8.00% 10/2019 19,521
 19,339
 3.1
 19,521
Veterinary Specialists of North America, LLCOne stop L + 5.25% 6.55% 07/2021 49
 41
 
 49


14

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31,June 30, 2017
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Printing and Publishing - (continued)        
Market Track, LLC#
One stop L + 7.00% 8.15% 10/2019 $4,957
 $4,942
 0.8
%$4,957
Market Track, LLC#
One stop L + 7.00% 8.15% 10/2019 4,059
 4,003
 0.6
 4,059
Market Track, LLC#
One stop L + 7.00% 8.15% 10/2019 2,251
 2,226
 0.4
 2,251
Market Track, LLCOne stop L + 7.00% 8.09% 10/2019 1,535
 1,519
 0.2
 1,535
Market Track, LLC#
One stop L + 7.00% 8.15% 10/2019 803
 791
 0.1
 803
Market Track, LLC*
One stop L + 7.00% 8.09% 10/2019 377
 376
 0.1
 377
Market Track, LLC#
One stop L + 7.00% 8.08% 10/2019 371
 369
 0.1
 371
Market Track, LLC*
One stop L + 7.00% 8.15% 10/2019 223
 222
 
 223
Marketo, Inc.(4)One stop L + 9.50% 10.65% 08/2021 20,640
 20,098
 3.3
 20,640
Personal, Food and Miscellaneous Services - (continued)Personal, Food and Miscellaneous Services - (continued)        
Veterinary Specialists of North America, LLC#
One stop L + 5.25% 6.43% 07/2021 $33
 $33
 
%$33
Veterinary Specialists of North America, LLC(4)
One stop L + 5.25% 
N/A (5)
 07/2021 
 (1) 
 
Wetzel's Pretzels, LLC*
One stop L + 6.75% 7.83% 09/2021 6,231
 6,138
 0.9
 6,231
Wetzel's Pretzels, LLC(4)
One stop L + 6.75% 
N/A (5)
 09/2021 
 (1) 
 
 92,405
 91,076
 13.0
 91,581
Printing and Publishing        
Brandmuscle, Inc.#
Senior loan L + 5.00% 6.30% 12/2021 539
 535
 0.1
 544
Marketo, Inc.One stop L + 9.50% 10.80% 08/2021 20,640
 20,129
 2.9
 20,640
Marketo, Inc.(4)
One stop L + 9.50% 
N/A(5)
 08/2021 
 (2) 
 
One stop L + 9.50% 
N/A (5)
 08/2021 
 (1) 
 
 55,277
 54,419
 8.8
 55,282
 21,179
 20,663
 3.0
 21,184
Retail Stores                
Batteries Plus Holding Corporation#*
One stop L + 6.75% 7.75% 07/2022 13,152
 12,968
 2.1
 13,152
One stop L + 6.75% 7.98% 07/2022 13,119
 12,944
 1.9
 13,119
Batteries Plus Holding Corporation(4)
One stop L + 6.75% 
N/A(5)
 07/2022 
 (2) 
 
One stop L + 6.75% 
N/A (5)
 07/2022 
 (2) 
 
CVS Holdings I, LP#*
One stop L + 6.25% 7.40% 08/2021 17,227
 16,989
 2.7
 17,227
One stop L + 6.25% 7.48% 08/2021 17,184
 16,960
 2.5
 17,184
CVS Holdings I, LP#
One stop L + 6.25% 7.40% 08/2021 249
 245
 
 249
One stop L + 6.25% 7.48% 08/2021 248
 244
 
 248
CVS Holdings I, LP(4)
One stop L + 6.25% 
N/A(5)
 08/2020 
 (3) 
 
One stop L + 6.25% 
N/A (5)
 08/2020 
 (2) 
 
CVS Holdings I, LP(4)
One stop L + 6.25% 
N/A(5)
 08/2021 
 (7) 
 
One stop L + 6.25% 
N/A (5)
 08/2021 
 (7) 
 
Cycle Gear, Inc.*
One stop L + 6.50% 7.50% 01/2020 7,610
 7,536
 1.2
 7,610
One stop L + 6.50% 7.65% 01/2020 7,591
 7,524
 1.1
 7,591
Cycle Gear, Inc.(4)One stop P + 5.25% 9.25% 01/2020 567
 559
 0.1
 567
One stop L + 6.50% 
N/A (5)
 01/2020 
 (7) 
 
Cycle Gear, Inc.(4)
One stop L + 6.50% 
N/A(5)
 01/2020 
 (8) 
 
One stop L + 6.50% 
N/A (5)
 01/2020 
 (8) 
 
DTLR, Inc.#*
One stop L + 6.50% 7.54% 10/2020 9,729
 9,660
 1.5
 9,729
One stop L + 6.50% 7.67% 10/2020 9,705
 9,640
 1.4
 9,705
Elite Sportswear, L.P.#
Senior loan L + 5.25% 6.40% 03/2020 3,109
 3,082
 0.5
 3,116
Senior loan L + 5.25% 6.55% 03/2020 3,101
 3,077
 0.4
 3,108
Elite Sportswear, L.P.#
Senior loan L + 5.00% 6.15% 03/2020 1,250
 1,239
 0.2
 1,245
Senior loan L + 5.00% 6.30% 03/2020 1,247
 1,237
 0.2
 1,242
Elite Sportswear, L.P.#
Senior loan L + 5.25% 6.40% 03/2020 643
 638
 0.1
 645
Senior loan L + 5.25% 6.55% 03/2020 642
 637
 0.1
 643
Elite Sportswear, L.P.Senior loan P + 3.75% 7.75% 03/2020 205
 202
 
 204
Senior loan P + 3.75% 8.00% 03/2020 330
 327
 
 328
Elite Sportswear, L.P.#
Senior loan L + 5.25% 6.40% 03/2020 98
 97
 
 98
Senior loan L + 5.25% 6.55% 03/2020 97
 97
 
 98
Express Oil Change, LLCSenior loan L + 5.00% 6.04% 12/2017 107
 107
 
 107
Express Oil Change, LLCSenior loan L + 5.00% 
N/A(5)
 04/2018 
 
 
 
Elite Sportswear, L.P.#
Senior loan L + 5.25% 6.49% 03/2020 93
 93
 
 94
Elite Sportswear, L.P.One stop L + 5.00% 6.62% 06/2018 17
 17
 
 17
Feeders Supply Company, LLC#*
One stop L + 5.75% 6.75% 04/2021 4,859
 4,809
 0.8
 4,859
One stop L + 5.75% 6.98% 04/2021 4,822
 4,775
 0.7
 4,822
Feeders Supply Company, LLCSubordinated debt N/A 12.50% cash/ 7.00% PIK 04/2021 53
 53
 
 53
Subordinated debt N/A 12.50% cash/
7.00% PIK
 04/2021 54
 54
 
 54
Feeders Supply Company, LLCOne stop L + 5.75% 6.75% 04/2021 3
 2
 
 3
One stop L + 5.75% 
N/A (5)
 04/2021 
 
 
 
Marshall Retail Group, LLC, The#
One stop L + 6.00% 7.00% 08/2020 3,182
 3,182
 0.5
 3,118
One stop L + 6.00% 7.15% 08/2020 3,150
 3,150
 0.5
 3,150
Marshall Retail Group, LLC, The(4)
One stop L + 6.00% 
N/A(5)
 08/2019 
 
 
 (11)
Marshall Retail Group, LLC, TheOne stop P + 4.75% 9.00% 08/2019 115
 115
 
 115
Mills Fleet Farm Group LLC#*
One stop L + 5.50% 6.50% 02/2022 11,650
 11,133
 1.9
 11,650
One stop L + 5.50% 6.73% 02/2022 11,650
 11,142
 1.7
 11,650
Pet Holdings ULC#(7)(8)
One stop L + 5.50% 6.50% 07/2022 32,512
 31,940
 5.2
 32,512
One stop L + 5.50% 6.65% 07/2022 32,430
 31,886
 4.6
 32,430
Pet Holdings ULC(7)(8)
One stop P + 4.50% 8.50% 07/2022 64
 61
 
 64
One stop P + 4.50% 8.75% 07/2022 120
 117
 
 120
Pet Holdings ULC(7)(8)
One stop P + 4.50% 8.50% 07/2022 9
 8
 
 9
One stop L + 5.50% 6.62% 07/2022 28
 27
 
 28
Sneaker Villa, Inc.#
One stop L + 7.75% 8.75% 12/2020 172
 171
 
 172
One stop L + 7.75% 8.98% 12/2020 172
 170
 
 172
 106,450
 104,661
 16.8
 106,378
 105,915
 104,207
 15.1
 105,918
Telecommunications              
   
   
   
              
   
   
   
NetMotion Wireless Holdings, Inc.*
One stop L + 6.25% 7.40% 10/2021 7,315
 7,216
 1.2
 7,315
NetMotion Wireless Holdings, Inc.*One stop L + 6.25% 7.55% 10/2021 7,297
 7,203
 1.0
 7,297
NetMotion Wireless Holdings, Inc.(4)
One stop L + 6.25% 
N/A(5)
 10/2021 
 (1) 
 
One stop L + 6.25% 
N/A (5)
 10/2021 
 (1) 
 
Wilcon Operations LLC*
One stop L + 6.00% 7.15% 10/2018 2,704
 2,695
 0.4
 2,704
Wilcon Operations LLC*
One stop L + 6.00% 7.15% 10/2018 1,103
 1,103
 0.2
 1,103
Wilcon Operations LLC*
One stop L + 6.00% 7.15% 10/2018 412
 409
 0.1
 412
Wilcon Operations LLCOne stop L + 6.00% 7.09% 10/2018 359
 356
 0.1
 359
Wilcon Operations LLCOne stop L + 6.00% 7.04% 10/2018 216
 200
 
 216
Wilcon Operations LLCOne stop L + 6.00% 7.15% 10/2018 161
 159
 
 161
 12,270
 12,137
 2.0
 12,270
 7,297
 7,202
 1.0
 7,297
Textile and Leather              
   
   
   
SHO Holding I Corporation*
Senior loan L + 5.00% 6.23% 10/2022 1,922
 1,886
 0.3
 1,922
SHO Holding I CorporationSenior loan L + 4.00% 5.15% 10/2021 16
 16
 
 14
 1,938
 1,902
 0.3
 1,936
        
        
        
        
        
        


15

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31,June 30, 2017
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Textile and Leather              
   
   
   
SHO Holding I Corporation*
Senior loan L + 5.00% 6.00% 10/2022 $1,927
 $1,889
 0.3
%$1,927
SHO Holding I Corporation(4)
Senior loan L + 4.00% 
N/A(5)
 10/2021 
 (1) 
 (2)
 1,927
 1,888
 0.3
 1,925
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Utilities              
   
   
   
              
   
   
   
Arcos, LLC*
One stop L + 6.50% 7.75% 02/2021 3,703
 3,674
 0.6
 3,703
One stop L + 6.00% 7.30% 02/2021 $3,411
 $3,384
 0.5
%$3,411
Arcos, LLCOne stop L + 6.50% 
N/A(5)
 02/2021 
 
 
 
One stop L + 6.00% 
N/A (5)
 02/2021 
 
 
 
PowerPlan Holdings, Inc.*
Senior loan L + 4.75% 5.75% 02/2022 847
 833
 0.1
 847
Senior loan L + 4.75% 6.05% 02/2022 2,528
 2,503
 0.4
 2,528
PowerPlan Holdings, Inc.*
Senior loan L + 4.75% 5.98% 02/2022 805
 790
 0.1
 805
 4,550
 4,507
 0.7
 4,550
 6,744
 6,677
 1.0
 6,744
Total non-controlled/non-affiliate company debt investmentsTotal non-controlled/non-affiliate company debt investments $1,103,361
 $1,088,135
 173.8
%$1,097,865
Total non-controlled/non-affiliate company debt investments $1,245,040
 $1,227,268
 176.0
%$1,236,695
                
   
                  
   
  
Equity investments (9)(10)
                
Aerospace and Defense        
Whitcraft LLCCommon stock N/A N/A N/A 7
 $688
 0.1
%$688
        
Automobile                
Polk Acquisition Corp.LP interest N/A N/A N/A 4
 $401
 0.1
%$443
LP interest N/A N/A N/A 4
 401
 
 340
                
Beverage, Food and Tobacco                
Hopdoddy Holdings, LLCLLC units N/A N/A N/A 17
 84
 
 50
LLC units N/A N/A N/A 17
 84
 
 57
Hopdoddy Holdings, LLCLLC units N/A N/A N/A 8
 24
 
 14
LLC units N/A N/A N/A 8
 24
 
 16
P&P Food Safety US Acquisition, Inc.LLC interest N/A N/A N/A 2
 203
 
 203
LLC interest N/A N/A N/A 2
 203
 
 217
Purfoods, LLCLLC interest N/A N/A N/A 355
 355
 0.1
 417
LLC interest N/A N/A N/A 355
 355
 0.1
 412
   666
 0.1
 684
   666
 0.1
 702
Chemicals, Plastics and Rubber                
Flexan, LLCPreferred stock N/A N/A N/A 
 40
 
 46
Preferred stock N/A N/A N/A 
 40
 
 47
Flexan, LLCCommon stock N/A N/A N/A 
 
 
 7
Common stock N/A N/A N/A 
 
 
 10
   40
 
 53
   40
 
 57
Diversified/Conglomerate Manufacturing                
Inventus Power, Inc.Preferred stock N/A N/A N/A 
 259
 
 68
Preferred stock N/A N/A N/A 
 259
 
 25
Inventus Power, Inc.Common stock N/A N/A N/A 
 
 
 
Common stock N/A N/A N/A 
 
 
 
Reladyne, Inc.LP interest N/A N/A N/A 
 242
 0.1
 298
LP interest N/A N/A N/A 
 242
 0.1
 423
   501
 0.1
 366
   501
 0.1
 448
Diversified/Conglomerate Service                
Actiance, Inc.Warrant N/A N/A N/A 248
 59
 
 64
Warrant N/A N/A N/A 248
 59
 
 74
Agility Recovery Solutions Inc.Preferred stock N/A N/A N/A 30
 152
 
 217
Preferred stock N/A N/A N/A 30
 152
 
 206
Bomgar CorporationCommon stock N/A N/A N/A 1
 620
 0.1
 569
Common stock N/A N/A N/A 1
 620
 0.1
 591
Bomgar CorporationCommon stock N/A N/A N/A 415
 6
 
 
Common stock N/A N/A N/A 415
 6
 
 
HealthcareSource HR, Inc.LLC interest N/A N/A N/A 
 165
 
 170
LLC interest N/A N/A N/A 
 165
 
 176
Host Analytics, Inc.Warrant N/A N/A N/A 154
 58
 
 122
Warrant N/A N/A N/A 154
 58
 
 121
Maverick Bidco Inc.LLC units N/A N/A N/A 1
 597
 0.1
 597
Project Alpha Intermediate Holding, Inc.Common stock N/A N/A N/A 
 399
 0.1
 421
Common stock N/A N/A N/A 
 399
 0.1
 431
Project Alpha Intermediate Holding, Inc.Common stock N/A N/A N/A 99
 4
 
 109
Common stock N/A N/A N/A 99
 4
 
 102
Quickbase, Inc.Common stock N/A N/A N/A 615
 615
 0.1
 770
Common stock N/A N/A N/A 615
 412
 0.1
 802
TA MHI Buyer, Inc.Preferred stock N/A N/A N/A 
 81
 0.1
 328
Switchfly, Inc.Warrant N/A N/A N/A 79
 114
 
 113
Verisys CorporationLLC interest N/A N/A N/A 318
 318
 0.1
 318
LLC interest N/A N/A N/A 318
 318
 0.1
 318
Workforce Software, LLCLLC units N/A N/A N/A 1,309
 1,309
 0.2
 1,384
LLC units N/A N/A N/A 1,309
 1,309
 0.2
 1,418
Xmatters, Inc. and Alarmpoint, Inc.Warrant N/A N/A N/A 41
 33
 
 30
Warrant N/A N/A N/A 41
 33
 
 30
   3,819
 0.7
 4,502
   4,246
 0.7
 4,979
Ecological                
Pace Analytical Services, LLCCommon stock N/A N/A N/A 3
 274
 0.1
 298
Common stock N/A N/A N/A 3
 274
 
 331
                
Electronics                
Diligent CorporationPreferred stock N/A N/A N/A 535
 535
 0.2
 978
Diligent Corporation (11)
Preferred stock N/A N/A N/A 535
 424
 0.1
 781
Gamma Technologies, LLCLLC units N/A N/A N/A 1
 82
 
 204
LLC units N/A N/A N/A 1
 82
 
 241
SEI, Inc.LLC units N/A N/A N/A 207
 161
 0.1
 245
Sloan Company, Inc., TheLLC units N/A N/A N/A 
 59
 
 4
Sloan Company, Inc., TheLLC units N/A N/A N/A 1
 7
 
 
        


16

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31,June 30, 2017
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Electronics - (continued)                
SEI, Inc.LLC units N/A N/A N/A 207
 $161
 
%$176
Sloan Company, Inc., TheLLC units N/A N/A N/A 
 59
 
 4
Sloan Company, Inc., TheLLC units N/A N/A N/A 1
 7
 
 
Syncsort IncorporatedPreferred stock N/A N/A N/A 78
 194
 0.1
 282
Preferred stock N/A N/A N/A 78
 $194
 0.1
%$494
   1,038
 0.3
 1,644
   927
 0.3
 1,765
Healthcare, Education and Childcare                
Active Day, Inc.LLC interest N/A N/A N/A 1
 529
 0.1
 637
LLC interest N/A N/A N/A 1
 529
 0.1
 585
Acuity Eyecare Holdings, LLCLLC interest N/A N/A N/A 419
 419
 0.1
 419
LLC interest N/A N/A N/A 419
 419
 0.1
 419
ADCS Clinics Intermediate Holdings, LLCPreferred stock N/A N/A N/A 1
 596
 0.1
 638
Preferred stock N/A N/A N/A 1
 596
 0.1
 567
ADCS Clinics Intermediate Holdings, LLCCommon stock N/A N/A N/A 
 6
 
 43
Common stock N/A N/A N/A 
 6
 
 
BIORECLAMATIONIVT, LLCLLC units N/A N/A N/A 
 323
 0.1
 445
LLC units N/A N/A N/A 
 323
 0.1
 467
DCA Investment Holding, LLCLLC units N/A N/A N/A 5,253
 525
 0.1
 595
LLC units N/A N/A N/A 5,253
 525
 0.1
 607
DCA Investment Holding, LLCLLC units N/A N/A N/A 53
 5
 
 73
LLC units N/A N/A N/A 53
 5
 
 48
Deca Dental Management LLCLLC units N/A N/A N/A 651
 651
 0.1
 763
LLC units N/A N/A N/A 651
 651
 0.1
 748
Dental Holdings CorporationLLC units N/A N/A N/A 359
 359
 0.1
 361
LLC units N/A N/A N/A 359
 359
 0.1
 352
Encore GC Acquisition, LLCLLC units N/A N/A N/A 8
 81
 
 68
LLC units N/A N/A N/A 8
 81
 
 70
Encore GC Acquisition, LLCLLC units N/A N/A N/A 8
 
 
 
LLC units N/A N/A N/A 8
 
 
 
Eyecare Services Partners Holdings LLCLLC units N/A N/A N/A 
 304
 0.1
 304
Eyecare Services Partners Holdings LLCLLC units N/A N/A N/A 
 3
 
 3
Kareo, Inc.Warrant N/A N/A N/A 27
 203
 
 203
Katena Holdings, Inc.LLC units N/A N/A N/A 
 205
 
 205
LLC units N/A N/A N/A 
 205
 
 199
Lombart Brothers, Inc.Common stock N/A N/A N/A 
 123
 
 172
Common stock N/A N/A N/A 
 123
 
 163
MWD Management, LLC & MWD Services, Inc.LLC interest N/A N/A N/A 154
 154
 
 154
Oliver Street Dermatology Holdings, LLCLLC units N/A N/A N/A 218
 218
 
 277
LLC units N/A N/A N/A 218
 218
 
 275
Pinnacle Treatment Centers, Inc.Preferred stock N/A N/A N/A 
 216
 
 211
Preferred stock N/A N/A N/A 
 216
 
 195
Pinnacle Treatment Centers, Inc.Common stock N/A N/A N/A 2
 2
 
 
Common stock N/A N/A N/A 2
 2
 
 
RXH Buyer CorporationLP interest N/A N/A N/A 4
 443
 
 135
LP interest N/A N/A N/A 4
 443
 
 132
SLMP, LLCLLC interest N/A N/A N/A 334
 334
 0.1
 334
WHCG Management, LLCLLC interest N/A N/A N/A 
 281
 0.1
 281
LLC interest N/A N/A N/A 
 281
 
 281
   4,982
 0.8
 5,323
   5,980
 0.9
 6,106
Insurance                
Internet Pipeline, Inc. (11)
Preferred stock N/A N/A N/A 
 153
 
 175
Internet Pipeline, Inc.Preferred stock N/A N/A N/A 
 207
 0.1
 261
Common stock N/A N/A N/A 93
 2
 0.1
 232
Internet Pipeline, Inc.Common stock N/A N/A N/A 90
 2
 
 167
   209
 0.1
 428
Leisure, Amusement, Motion Pictures, Entertainment        
Competitor Group, Inc.#
Preferred stock N/A N/A N/A 
 184
 
 
Competitor Group, Inc.#
Common stock N/A N/A N/A 
 
 
 
   184
 
 
   155
 0.1
 407
Mining, Steel, Iron and Non-Precious Metals                
Benetech, Inc.#
LLC interest N/A N/A N/A 
 
 
 
LLC interest N/A N/A N/A 
 
 
 
Benetech, Inc.#
LLC interest N/A N/A N/A 
 
 
 
LLC interest N/A N/A N/A 
 
 
 
   
 
 
           
 
 
Personal and Non Durable Consumer Products (Mfg. Only)                
Georgica Pine Clothiers, LLCLLC units N/A N/A N/A 9
 91
 
 105
LLC units N/A N/A N/A 9
 91
 
 92
                
Personal, Food and Miscellaneous Services                
Clarkson Eyecare LLCLLC units N/A N/A N/A 
 63
 
 136
LLC units N/A N/A N/A 
 63
 
 131
Community Veterinary Partners, LLCCommon stock N/A N/A N/A 1
 98
 
 125
Common stock N/A N/A N/A 1
 98
 
 119
Southern Veterinary Partners, LLCLLC units N/A N/A N/A 
 49
 
 49
Southern Veterinary Partners, LLCLLC units N/A N/A N/A 52
 3
 
 3
Vetcor Professional Practices LLCLLC units N/A N/A N/A 498
 298
 0.1
 318
LLC units N/A N/A N/A 498
 298
 0.1
 325
Vetcor Professional Practices LLCLLC units N/A N/A N/A 55
 55
 0.1
 565
LLC units N/A N/A N/A 55
 55
 0.1
 601
Veterinary Specialists of North America, LLCLLC units N/A N/A N/A 
 56
 
 76
LLC units N/A N/A N/A 
 56
 
 78
Wetzel's Pretzels, LLCCommon stock N/A N/A N/A 
 149
 
 161
Common stock N/A N/A N/A 
 149
 
 166
   719
 0.2
 1,381
   771
 0.2
 1,472
Printing and Publishing        
Brandmuscle, Inc.LLC interest N/A N/A N/A 
 207
 
 203
        
Retail Stores        
Batteries Plus Holding CorporationLP interest N/A N/A N/A 5
 505
 0.1
 626
Cycle Gear, Inc.LLC units N/A N/A N/A 8
 111
 
 174


17

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31,June 30, 2017
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal ($) /
Shares
(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Printing and Publishing        
Brandmuscle, Inc.LLC interest N/A N/A N/A 
 $207
 
%$225
        
Retail Stores        
Batteries Plus Holding CorporationLP interest N/A N/A N/A 5
 505
 0.1
 618
Cycle Gear, Inc.LLC units N/A N/A N/A 8
 111
 
 172
Retail Stores - (continued)        
Elite Sportswear, L.P.LLC interest N/A N/A N/A 
 71
 
 93
LLC interest N/A N/A N/A 
 $70
 
%$55
Feeders Supply Company, LLCPreferred stock N/A N/A N/A 2
 179
 0.1
 194
Preferred stock N/A N/A N/A 2
 179
 
 199
Feeders Supply Company, LLCCommon stock N/A N/A N/A 
 
 
 51
Common stock N/A N/A N/A 
 
 
 89
Pet Holdings ULC(7)(8)
LP interest N/A N/A N/A 222
 188
 
 158
LP interest N/A N/A N/A 222
 188
 
 195
   1,054
 0.2
 1,286
   1,053
 0.1
 1,338
Utilities                
PowerPlan Holdings, Inc.Common stock N/A N/A N/A 
 135
 
 162
Common stock N/A N/A N/A 
 116
 
 115
PowerPlan Holdings, Inc.Common stock N/A N/A N/A 68
 1
 
 137
Common stock N/A N/A N/A 68
 1
 
 104
   136
 
 299
   117
 
 219
                
Total non-controlled/non-affiliate company equity investmentsTotal non-controlled/non-affiliate company equity investments   $14,321
 2.7
%$17,037
Total non-controlled/non-affiliate company equity investments   $16,117
 2.6
%$19,147
                
Total non-controlled/non-affiliate company investmentsTotal non-controlled/non-affiliate company investments $1,103,361
 $1,102,456
 176.5
%$1,114,902
Total non-controlled/non-affiliate company investments $1,245,040
 $1,243,385
 178.6
%$1,255,842
                
Controlled affiliate company investments(11)
        
        
        
Controlled affiliate company investments(12)
Controlled affiliate company investments(12)
        
Equity investments                
Investment Funds and Vehicles                
GCIC Senior Loan Fund LLC(7)
LLC interest N/A N/A N/A   $51,340
 8.3
%$52,423
GCIC Senior Loan Fund LLC(7)(13)
LLC interest N/A N/A N/A   $47,175
 6.9
%$48,118
                
Total controlled affiliate company equity investmentsTotal controlled affiliate company equity investments   $51,340
 8.3
%$52,423
Total controlled affiliate company equity investments   $47,175
 6.9
%$48,118
        
Total controlled affiliate company investmentsTotal controlled affiliate company investments 
 $47,175
 6.9
%$48,118
                
Total investmentsTotal investments $1,103,361
 $1,153,796
 184.8
%$1,167,325
Total investments $1,245,040
 $1,290,560
 185.5
%$1,303,960
                 
Cash and cash equivalents and restricted cash and cash equivalentsCash and cash equivalents and restricted cash and cash equivalents      
   
   
   
Cash and cash equivalents and restricted cash and cash equivalents      
   
   
   
Cash and restricted cashCash and restricted cash      
 $46,058
 7.3
%$46,058
Cash and restricted cash      
 $47,427
 6.8
%$47,427
BlackRock Liquidity Funds T-Fund Institutional Shares (CUSIP 09248U718)BlackRock Liquidity Funds T-Fund Institutional Shares (CUSIP 09248U718) 
0.37% (12)
      
 6,748
 1.1
 6,748
BlackRock Liquidity Funds T-Fund Institutional Shares (CUSIP 09248U718) 
0.61% (14)
      
 309
 0.1
 309
Total cash and cash equivalents and restricted cash and cash equivalentsTotal cash and cash equivalents and restricted cash and cash equivalents     $52,806
 8.4
%$52,806
Total cash and cash equivalents and restricted cash and cash equivalents     $47,736
 6.9
%$47,736
                 
Total investments and cash and cash equivalents and restricted cash and cash equivalentsTotal investments and cash and cash equivalents and restricted cash and cash equivalents   $1,206,602
 193.2
%$1,220,131
Total investments and cash and cash equivalents and restricted cash and cash equivalents   $1,338,296
 192.4
%$1,351,696
 
# 
 Denotes that all or a portion of the investment collateralizedcollateralizes the Credit Facility (as defined in Note 8).
* 
 
Denotes that all or a portion of the investment secures the notes offered in the GCIC 2016 Debt Securitization (as defined in Note 8).

(1)The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (‘‘LIBOR’’ or ‘‘L’’) or Prime (‘‘P’’) and which reset daily, monthly, quarterly or semiannually. For each, the Company has provided the spread over LIBOR or Prime and the weighted average current interest rate in effect at March 31,June 30, 2017. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable.
(2)For portfolio companies with multiple interest rate contracts, the interest rate shown is a weighted average current interest rate in effect at March 31,June 30, 2017.
(3)The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.
(4)The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par. The negative amortized cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.
(5)The entire commitment was unfunded at March 31,as of June 30, 2017. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.
(6)Loan was on non-accrual status as of March 31,June 30, 2017, meaning that the Company has ceased recognizing interest income on the loan.


18

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
March 31, 2017
(In thousands)


(7)The investment is treated as a non-qualifying asset under Section 55(a) of the Investment Company Act of 1940, as amended (the ‘‘1940 Act’’). Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of March 31,June 30, 2017, total non-qualifying assets at fair value represented 7.2%6.1% of the Company’s assets calculated in accordance with the 1940 Act.
(8)The headquarters of this portfolio company is located in Canada.
(9)Non-incomeEquity investments are non-income producing securities.securities unless otherwise noted.


18

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments (unaudited) - (continued)
June 30, 2017
(In thousands)


(10) Ownership of certain equity investments may occur through a holding company or partnership.
(11)The Company holds an equity investment that entitles it to receive preferential dividends.
(12) As defined in the 1940 Act, the Company is deemed to be both an ‘‘Affiliated Person’’ of and ‘‘Control’’ this portfolio company as the Company owns more than 25% of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Note 6 in the accompanying notes to the consolidated financial statements for transactions during the threenine months ended March 31,June 30, 2017 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control.
(12)(13)The Company receives quarterly profit distributions from its equity investment in GCIC Senior Loan Fund LLC. (See Note 5 in the accompanying notes to the consolidated financial statements).
(14)The rate shown is the annualized seven-day yield as of March 31,June 30, 2017.





19


Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments
September 30, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investments              
   
   
   
Non-controlled/non-affiliate company investments             
   
   
   
Debt investments              
   
   
   
Aerospace and Defense              
   
   
   
ILC Dover, LPOne stop L + 9.00% 8.00% cash/2.00% PIK 03/2020 $2,370
 $2,314
 0.3
%$2,015
ILC Dover, LPOne stop L + 9.00% 8.00% cash/2.00% PIK 03/2019 105
 102
 
 89
NTS Technical Systems*
One stop L + 6.25% 7.25% 06/2021 3,893
 3,839
 0.6
 3,815
NTS Technical Systems(4)
One stop L + 6.25% 
N/A(5)
 06/2021 
 (12) 
 (11)
NTS Technical Systems(4)
One stop L + 6.25% 
N/A(5)
 06/2021 
 (6) 
 (8)
Tresys Technology Holdings, Inc.(6)
One stop L + 6.75% 8.00% 12/2017 53
 28
 
 16
Tresys Technology Holdings, Inc.One stop L + 6.75% 8.00% 12/2017 7
 7
 
 7
Tronair Parent, Inc.Senior loan L + 4.50% 
N/A(5)
 09/2021 
 
 
 
Whitcraft LLC*
One stop L + 6.50% 7.50% 05/2020 6,745
 6,695
 1.1
 6,745
Whitcraft LLC(4)
One stop L + 6.50% 
N/A(5)
 05/2020 
 (1) 
 
         13,173
 12,966
 2.0
 12,668
Automobile              
   
   
   
American Driveline Systems, Inc.Senior loan L + 5.75% 6.75% 03/2020 378
 347
 0.1
 378
American Driveline Systems, Inc.Senior loan L + 5.75% 6.75% 03/2020 49
 48
 
 49
American Driveline Systems, Inc.Senior loan P + 4.75% 8.25% 03/2020 10
 5
 
 10
CH Hold Corp.*
Senior loan L + 5.25% 6.25% 11/2019 2,295
 2,279
 0.4
 2,295
Dent Wizard International Corporation*
Senior loan L + 4.75% 5.75% 04/2020 1,192
 1,187
 0.2
 1,192
K&N Engineering, Inc.*
Senior loan P + 3.25% 6.75% 07/2019 1,139
 1,139
 0.2
 1,139
K&N Engineering, Inc.*#
Senior loan L + 4.25% 5.25% 07/2019 55
 55
 
 55
K&N Engineering, Inc.Senior loan L + 4.25% 
N/A(5)
 07/2019 
 
 
 
OEConnection LLC#
Senior loan L + 5.00% 6.00% 06/2022 11,167
 10,892
 1.8
 11,167
OEConnection LLC(4)
Senior loan L + 5.00% 
N/A(5)
 06/2021 
 (1) 
 
Polk Acquisition Corp.*#
Senior loan L + 5.00% 6.00% 06/2022 13,601
 13,395
 2.2
 13,601
Polk Acquisition Corp.Senior loan L + 5.00% 6.00% 06/2022 54
 53
 
 54
Polk Acquisition Corp.Senior loan L + 5.00% 6.64% 06/2022 18
 16
 
 18
Polk Acquisition Corp.(4)
Senior loan L + 5.00% 
N/A(5)
 06/2022 
 (2) 
 
T5 Merger Corporation*#
One stop L + 6.25% 7.25% 03/2022 22,118
 21,756
 3.6
 21,897
T5 Merger Corporation(4)
One stop L + 6.25% 
N/A(5)
 03/2022 
 (2) 
 (1)
          52,076
 51,167
 8.5
 51,854
Beverage, Food and Tobacco              
   
   
   
Abita Brewing Co., L.L.C.#
One stop L + 5.75% 6.75% 04/2021 3,858
 3,828
 0.6
 3,472
Abita Brewing Co., L.L.C.(4)
One stop L + 5.75% 6.75% 04/2021 4
 3
 
 (11)
ABP Corporation*
Senior loan L + 4.75% 6.00% 09/2018 604
 604
 0.1
 574
ABP CorporationSenior loan P + 3.50% 7.25% 09/2018 32
 32
 
 29
Benihana, Inc.#
One stop L + 6.00% 7.25% 01/2019 303
 303
 
 297
Benihana, Inc.One stop P + 4.75% 7.92% 07/2018 32
 32
 
 31
C. J. Foods, Inc.*
One stop L + 5.00% 6.00% 05/2019 7,648
 7,648
 1.2
 7,648
C. J. Foods, Inc.One stop L + 5.00% 6.00% 05/2019 1,613
 1,613
 0.3
 1,613
C. J. Foods, Inc.One stop L + 5.00% 
N/A(5)
 05/2019 
 
 
 
Firebirds International, LLC*
One stop L + 5.75% 7.00% 05/2018 3,331
 3,331
 0.5
 3,331
Firebirds International, LLC*
One stop L + 5.75% 7.00% 05/2018 938
 938
 0.2
 938
Firebirds International, LLCOne stop L + 5.75% 7.00% 05/2018 171
 171
 
 171
Firebirds International, LLCOne stop L + 5.75% 
N/A(5)
 05/2018 
 
 
 
First Watch Restaurants, Inc.*
One stop L + 6.00% 7.15% 12/2020 3,569
 3,540
 0.6
 3,569
First Watch Restaurants, Inc.One stop P + 5.00% 8.05% 12/2020 224
 223
 
 224
First Watch Restaurants, Inc.One stop L + 6.00% 7.00% 12/2020 175
 174
 
 175
First Watch Restaurants, Inc.One stop L + 6.00% 7.00% 12/2020 175
 174
 
 175


20

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments - (continued)
September 30, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Beverage, Food and Tobacco - (continued)               
First Watch Restaurants, Inc.(4)
One stop L + 6.00% 
N/A(5)
 12/2020 $
 $(1) 
%$
Hopdoddy Holdings, LLCOne stop L + 8.00% 9.00% 08/2020 426
 422
 0.1
 426
Hopdoddy Holdings, LLCOne stop L + 8.00% 
N/A(5)
 08/2020 
 
 
 
Hopdoddy Holdings, LLC(4)
One stop L + 8.00% 
N/A(5)
 08/2020 
 (2) 
 
Julio & Sons Company*
One stop L + 5.50% 6.50% 12/2018 945
 941
 0.2
 945
Julio & Sons CompanyOne stop L + 5.50% 6.50% 12/2018 147
 146
 
 147
Julio & Sons CompanyOne stop L + 5.50% 6.50% 12/2018 83
 81
 
 83
Purfoods, LLC*#
One stop L + 6.25% 7.25% 05/2021 8,047
 7,936
 1.3
 8,047
Purfoods, LLCOne stop N/A 7.00% PIK 05/2026 95
 95
 
 95
Purfoods, LLCOne stop L + 6.25% 7.25% 05/2021 25
 24
 
 25
Purfoods, LLC(4)
One stop L + 6.25% 
N/A(5)
 05/2021 
 (1) 
 
Smashburger Finance LLC*
Senior loan L + 5.50% 6.75% 05/2018 529
 527
 0.1
 518
Smashburger Finance LLC(4)
Senior loan L + 5.50% 
N/A(5)
 05/2018 
 (12) 
 
Surfside Coffee Company LLC*
One stop L + 5.25% 6.25% 06/2020 2,345
 2,327
 0.4
 2,345
Surfside Coffee Company LLCOne stop L + 5.25% 6.25% 06/2020 177
 173
 
 177
Surfside Coffee Company LLCOne stop L + 5.25% 6.25% 06/2020 26
 25
 
 26
Tate's Bake Shop, Inc.#
Senior loan L + 5.00% 6.00% 08/2019 144
 143
 
 144
Uinta Brewing Company#
One stop L + 8.50% 9.50% 08/2019 900
 900
 0.1
 873
Uinta Brewing CompanyOne stop L + 8.50% 9.50% 08/2019 74
 74
 
 71
         36,640
 36,412
 5.7
 36,158
Broadcasting and Entertainment          
   
     
Extreme Reach Inc.*
Senior loan L + 6.25% 7.25% 02/2020 933
 907
 0.2
 943
TouchTunes Interactive Networks, Inc.*
Senior loan L + 4.75% 5.75% 05/2021 697
 695
 0.1
 700
         1,630
 1,602
 0.3
 1,643
Building and Real Estate               
Brooks Equipment Company, LLC*
One stop L + 5.00% 6.00% 08/2020 6,135
 6,135
 1.0
 6,135
Brooks Equipment Company, LLCOne stop L + 5.00% 
N/A(5)
 08/2020 
 
 
 
Paradigm DKD Group, LLC#
Senior loan L + 5.25% 6.50% 11/2018 2,160
 2,132
 0.4
 2,116
Paradigm DKD Group, LLCSenior loan L + 5.25% 6.70% 11/2018 195
 185
 
 179
         8,490
 8,452
 1.4
 8,430
Cargo Transport              
   
   
   
Worldwide Express Operations, LLC*
Senior loan L + 5.00% 6.00 07/2019 1,767
 1,752
 0.3
 1,767
                
Containers, Packaging and Glass          
   
     
Fort Dearborn Company*
Senior loan L + 4.75% 5.75% 10/2018 960
 959
 0.2
 960
Fort Dearborn Company*
Senior loan L + 4.25% 5.25% 10/2017 164
 164
 
 164
         1,124
 1,123
 0.2
 1,124
Diversified Conglomerate Manufacturing              
   
   
   
Chase Industries, Inc.*#
One stop L + 5.75% 6.81% 09/2020 7,009
 7,006
 1.1
 7,009
Chase Industries, Inc.One stop L + 5.75% 7.13% 09/2020 1,555
 1,555
 0.3
 1,555
Chase Industries, Inc.One stop L + 5.75% 
N/A(5)
 09/2020 
 
 
 
Inventus Power, Inc#
One stop L + 5.50% 6.50% 04/2020 10,481
 10,428
 1.6
 9,643
Inventus Power, Inc(4)
One stop L + 5.50% 
N/A(5)
 04/2020 
 (3) 
 (52)
Onicon Incorporated*#
One stop L + 6.00% 7.00% 04/2020 184
 182
 
 182
Onicon IncorporatedOne stop L + 6.00% 
N/A(5)
 04/2020 
 
 
 
Pasternack Enterprises, Inc. and Fairview Microwave, Inc.#
Senior loan L + 5.00% 6.00% 05/2022 2,296
 2,273
 0.4
 2,273
PetroChoice Holdings, Inc.*
Senior loan L + 5.00% 6.00% 08/2022 1,645
 1,598
 0.3
 1,645
Reladyne, Inc.#
Senior loan L + 5.25% 6.25% 07/2022 9,850
 9,697
 1.6
 9,751
Reladyne, Inc.Senior loan L + 5.25% 6.25% 07/2022 111
 110
 
 110


21

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments - (continued)
September 30, 2016
(In thousands)


Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Diversified Conglomerate Manufacturing - (continued)                
Reladyne, Inc.Senior loan P + 4.25% 7.75% 07/2022 $26
 $24
 
%$24
Senior loan P + 4.25% 7.75% 07/2022 $26
 $24
 
%$24
Reladyne, Inc.(4)
Senior loan L + 5.25% 
N/A(5)
 07/2022 
 (2) 
 (1)Senior loan L + 5.25% 
N/A(5)
 07/2022 
 (2) 
 (1)
Sunless Merger Sub, Inc.Senior loan L + 5.00% 6.25% 07/2019 298
 252
 
 298
Senior loan L + 5.00% 6.25% 07/2019 298
 252
 
 298
Sunless Merger Sub, Inc.Senior loan P + 3.75% 7.25% 07/2019 30
 27
 
 30
Senior loan P + 3.75% 7.25% 07/2019 30
 27
 
 30
   33,485
 33,147
 5.3
 32,467
   33,485
 33,147
 5.3
 32,467
Diversified Conglomerate Service              
   
   
   
              
   
   
   
Accellos, Inc.*
One stop L + 5.75% 6.75% 07/2020 6,268
 6,260
 1.0
 6,268
One stop L + 5.75% 6.75% 07/2020 6,268
 6,260
 1.0
 6,268
Accellos, Inc.One stop L + 5.75% 
N/A(5)
 07/2020 
 
 
 
One stop L + 5.75% 
N/A(5)
 07/2020 
 
 
 
Actiance, Inc.One stop L + 9.00% 10.00% 04/2018 1,401
 1,367
 0.2
 1,401
One stop L + 9.00% 10.00% 04/2018 1,401
 1,367
 0.2
 1,401
Actiance, Inc.One stop L + 9.00% 
N/A(5)
 04/2018 
 
 
 
One stop L + 9.00% 
N/A(5)
 04/2018 
 
 
 
Agility Recovery Solutions Inc.*
One stop L + 6.50% 7.50% 03/2020 6,280
 6,216
 1.0
 6,280
One stop L + 6.50% 7.50% 03/2020 6,280
 6,216
 1.0
 6,280
Agility Recovery Solutions Inc.(4)
One stop L + 6.50% 
N/A(5)
 03/2020 
 (3) 
 
One stop L + 6.50% 
N/A(5)
 03/2020 
 (3) 
 
Bomgar Corporation*#
One stop L + 7.50% 8.50% 06/2022 28,641
 28,094
 4.6
 28,641
One stop L + 7.50% 8.50% 06/2022 28,641
 28,094
 4.6
 28,641
Bomgar Corporation(4)
One stop L + 7.50% 
N/A(5)
 06/2022 
 (2) 
 
One stop L + 7.50% 
N/A(5)
 06/2022 
 (2) 
 
CIBT Holdings, Inc*
Senior loan L + 5.25% 6.25% 06/2022 1,882
 1,863
 0.3
 1,882
Senior loan L + 5.25% 6.25% 06/2022 1,882
 1,863
 0.3
 1,882
CIBT Holdings, Inc.Senior loan L + 5.25% 
N/A(5)
 06/2022 
 
 
 
Senior loan L + 5.25% 
N/A(5)
 06/2022 
 
 
 
Clearwater Analytics, LLC*#
One stop L + 7.50% 8.50% 09/2022 9,337
 9,176
 1.5
 9,220
One stop L + 7.50% 8.50% 09/2022 9,337
 9,176
 1.5
 9,220
Clearwater Analytics, LLC(4)
One stop L + 7.50% 
N/A(5)
 09/2022 
 (2) 
 (1)One stop L + 7.50% 
N/A(5)
 09/2022 
 (2) 
 (1)
Daxko Acquisition Corporation#
One stop L + 6.50% 7.50% 09/2022 8,488
 8,361
 1.4
 8,403
One stop L + 6.50% 7.50% 09/2022 8,488
 8,361
 1.4
 8,403
Daxko Acquisition Corporation(4)
One stop L + 6.50% 
N/A(5)
 09/2022 
 (1) 
 
One stop L + 6.50% 
N/A(5)
 09/2022 
 (1) 
 
DISA Holdings Acquisition Subsidiary Corp.*
Senior loan L + 4.50% 5.50% 12/2020 1,375
 1,364
 0.2
 1,333
Senior loan L + 4.50% 5.50% 12/2020 1,375
 1,364
 0.2
 1,333
DISA Holdings Acquisition Subsidiary Corp.Senior loan L + 4.50% 5.50% 12/2020 77
 75
 
 67
Senior loan L + 4.50% 5.50% 12/2020 77
 75
 
 67
EGD Security Systems, LLC*#
One stop L + 6.25% 7.25% 06/2022 10,372
 10,248
 1.7
 10,372
One stop L + 6.25% 7.25% 06/2022 10,372
 10,248
 1.7
 10,372
EGD Security Systems, LLCOne stop L + 6.25% 7.25% 06/2022 98
 96
 
 98
One stop L + 6.25% 7.25% 06/2022 98
 96
 
 98
EGD Security Systems, LLC(4)
One stop L + 6.25% 
N/A(5)
 06/2022 
 (2) 
 
One stop L + 6.25% 
N/A(5)
 06/2022 
 (2) 
 
HealthcareSource HR, Inc.*
One stop L + 6.75% 7.75% 05/2020 8,367
 8,259
 1.4
 8,367
One stop L + 6.75% 7.75% 05/2020 8,367
 8,259
 1.4
 8,367
HealthcareSource HR, Inc.(4)
One stop L + 6.75% 
N/A(5)
 05/2020 
 (1) 
 
One stop L + 6.75% 
N/A(5)
 05/2020 
 (1) 
 
Host Analytics, Inc.One stop N/A 8.50% cash/2.25% PIK 02/2020 1,349
 1,335
 0.2
 1,339
One stop N/A 8.50% cash/2.25% PIK 02/2020 1,349
 1,335
 0.2
 1,339
Host Analytics, Inc.One stop N/A 8.50% cash/2.25% PIK 08/2021 1,137
 1,127
 0.2
 1,129
One stop N/A 8.50% cash/2.25% PIK 08/2021 1,137
 1,127
 0.2
 1,129
Host Analytics, Inc.(4)
One stop N/A 
N/A(5)
 02/2020 
��(4) 
 (2)One stop N/A 
N/A(5)
 02/2020 
 (4) 
 (2)
III US Holdings, LLC#
One stop L + 6.00% 7.00% 09/2022 5,465
 5,356
 0.9
 5,356
One stop L + 6.00% 7.00% 09/2022 5,465
 5,356
 0.9
 5,356
III US Holdings, LLC(4)
One stop L + 6.00% 
N/A(5)
 09/2022 
 (1) 
 (1)One stop L + 6.00% 
N/A(5)
 09/2022 
 (1) 
 (1)
Integration Appliance, Inc.One stop L + 8.25% 9.50% 09/2020 1,550
 1,537
 0.3
 1,550
One stop L + 8.25% 9.50% 09/2020 1,550
 1,537
 0.3
 1,550
Jensen Hughes, Inc.#
Senior loan L + 5.00% 6.00% 12/2021 134
 133
 
 134
Senior loan L + 5.00% 6.00% 12/2021 134
 133
 
 134
Netsmart Technologies, Inc.#
Senior loan L + 4.75% 5.75% 04/2023 1,649
 1,634
 0.3
 1,659
Senior loan L + 4.75% 5.75% 04/2023 1,649
 1,634
 0.3
 1,659
Netsmart Technologies, Inc.(4)
Senior loan L + 4.75% 
N/A(5)
 04/2023 
 (9) 
 
Senior loan L + 4.75% 
N/A(5)
 04/2023 
 (9) 
 
Project Alpha Intermediate Holding, Inc.#
One stop L + 8.25% 9.25% 08/2022 16,508
 16,022
 2.6
 16,178
One stop L + 8.25% 9.25% 08/2022 16,508
 16,022
 2.6
 16,178
PT Intermediate Holdings III, LLC*#
One stop L + 6.50% 7.50% 06/2022 23,508
 23,171
 3.8
 23,508
One stop L + 6.50% 7.50% 06/2022 23,508
 23,171
 3.8
 23,508
PT Intermediate Holdings III, LLCOne stop P + 5.50% 9.00% 06/2022 25
 21
 
 25
One stop P + 5.50% 9.00% 06/2022 25
 21
 
 25
Quickbase, Inc.#
One stop L + 7.50% 8.50% 04/2022 11,468
 11,257
 1.9
 11,468
One stop L + 7.50% 8.50% 04/2022 11,468
 11,257
 1.9
 11,468
Quickbase, Inc.(4)
One stop L + 7.50% 
N/A(5)
 04/2022 
 (2) 
 
One stop L + 7.50% 
N/A(5)
 04/2022 
 (2) 
 
Secure-24, LLC*
One stop L + 6.00% 7.25% 08/2017 809
 809
 0.1
 809
One stop L + 6.00% 7.25% 08/2017 809
 809
 0.1
 809
Secure-24, LLC*
One stop L + 6.00% 7.25% 08/2017 118
 118
 
 118
One stop L + 6.00% 7.25% 08/2017 118
 118
 
 118
Secure-24, LLCOne stop L + 6.00% 
N/A(5)
 08/2017 
 
 
 
One stop L + 6.00% 
N/A(5)
 08/2017 
 
 
 
Severin Acquisition, LLC*
Senior loan L + 5.38% 6.38% 07/2021 1,441
 1,429
 0.2
 1,462
Senior loan L + 5.38% 6.38% 07/2021 1,441
 1,429
 0.2
 1,462
Severin Acquisition, LLC*
Senior loan L + 5.00% 6.00% 07/2021 1,284
 1,273
 0.2
 1,284
Senior loan L + 5.00% 6.00% 07/2021 1,284
 1,273
 0.2
 1,284
Severin Acquisition, LLC#
Senior loan L + 5.38% 6.38% 07/2021 981
 972
 0.2
 995
Senior loan L + 5.38% 6.38% 07/2021��981
 972
 0.2
 995
Severin Acquisition, LLC*
Senior loan L + 4.88% 5.88% 07/2021 317
 313
 0.1
 315
Senior loan L + 4.88% 5.88% 07/2021 317
 313
 0.1
 315
Steelwedge Software, Inc.One stop L + 10.00% 9.00% cash/2.00% PIK 09/2020 1,767
 1,696
 0.3
 1,767
One stop L + 10.00% 9.00% cash/2.00% PIK 09/2020 1,767
 1,696
 0.3
 1,767


22

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments - (continued)
September 30, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Diversified Conglomerate Service - (continued)               
Steelwedge Software, Inc.One stop L + 8.00% 
N/A(5)
 09/2020 $
 $
 
%$
TA MHI Buyer, Inc.*
One stop L + 6.50% 7.50% 09/2021 6,622
 6,573
 1.1
 6,622
TA MHI Buyer, Inc.#
One stop L + 6.50% 7.50% 09/2021 1,032
 1,022
 0.2
 1,032
TA MHI Buyer, Inc.#
One stop L + 6.50% 7.50% 09/2021 536
 531
 0.1
 536
TA MHI Buyer, Inc.#
One stop L + 6.50% 7.50% 09/2021 191
 190
 
 191
TA MHI Buyer, Inc.One stop L + 6.50% 
N/A(5)
 09/2021 
 
 
 
Trintech, Inc. *
One stop L + 6.00% 7.00% 10/2021 8,820
 8,724
 1.4
 8,820
Trintech, Inc.(4)
One stop L + 6.00% 
N/A(5)
 10/2021 
 (1) 
 
Vendavo, Inc.One stop L + 8.50% 9.50% 10/2019 4,331
 4,295
 0.7
 4,257
Vendavo, Inc.(4)
One stop L + 8.50% 
N/A(5)
 10/2019 
 (2) 
 (6)
Vendor Credentialing Service LLC*#
One stop L + 6.00% 7.00% 11/2021 11,342
 11,191
 1.8
 11,342
Vendor Credentialing Service LLC(4)
One stop L + 6.00% 
N/A(5)
 11/2021 
 (1) 
 
Vitalyst, LLC#
Senior loan L + 5.25% 6.50% 09/2017 95
 95
 
 95
Vitalyst, LLCSenior loan L + 4.25% 
N/A(5)
 09/2017 
 
 
 
Workforce Software, LLCOne stop L + 10.50% 4.50% cash/7.00% PIK 06/2021 21,601
 21,452
 3.5
 21,439
Workforce Software, LLCOne stop L + 3.50% 
N/A(5)
 06/2021 
 
 
 
Xmatters, Inc. and Alarmpoint, Inc.One stop L + 8.50% 9.50% 08/2021 4,428
 4,365
 0.7
 4,395
Xmatters, Inc. and Alarmpoint, Inc.One stop L + 8.50% 
N/A(5)
 08/2021 
 
 
 
          211,094
 207,989
 34.1
 210,147
Ecological               
Pace Analytical Services, LLC*#
One stop L + 6.25% 7.25% 09/2022 15,374
 15,105
 2.5
 15,220
Pace Analytical Services, LLC(4)
One stop L + 6.25% 
N/A(5)
 09/2022 
 (2) 
 (1)
Pace Analytical Services, LLC(4)
One stop L + 6.25% 
N/A(5)
 09/2022 
 (6) 
 (3)
         15,374
 15,097
 2.5
 15,216
Electronics              
   
   
   
Appriss Holdings, Inc.*#
Senior loan L + 5.25% 6.25% 11/2020 10,322
 10,225
 1.7
 10,322
Appriss Holdings, Inc.Senior loan L + 5.25% 6.25% 11/2020 379
 369
 0.1
 379
Compusearch Software Holdings, Inc.*
Senior loan L + 4.25% 5.25% 05/2021 631
 630
 0.1
 631
Diligent Corporation*#
One stop L + 6.75% 7.75% 04/2022 32,020
 31,354
 5.2
 32,020
Diligent Corporation(4)
One stop L + 6.75% 
N/A(5)
 04/2022 
 (2) 
 
ECI Acquisition Holdings, Inc.*
One stop L + 6.25% 7.25% 03/2019 7,148
 7,148
 1.2
 7,148
ECI Acquisition Holdings, Inc.#
One stop L + 6.25% 7.25% 03/2019 463
 463
 0.1
 463
ECI Acquisition Holdings, Inc.One stop L + 6.25% 
N/A(5)
 03/2019 
 
 
 
Gamma Technologies, LLC*#
One stop L + 5.00% 6.00% 06/2021 9,443
 9,369
 1.5
 9,443
Gamma Technologies, LLC(4)
One stop L + 5.00% 
N/A(5)
 06/2021 
 (1) 
 
Park Place Technologies LLC*#
One stop L + 5.25% 6.25% 06/2022 10,720
 10,580
 1.7
 10,720
Park Place Technologies LLCOne stop L + 5.25% 6.25% 06/2022 100
 98
 
 100
Sloan Company, Inc., The#
One stop L + 7.25% 8.25% 04/2020 3,626
 3,577
 0.6
 3,445
Sloan Company, Inc., TheOne stop L + 7.25% 8.25% 04/2020 6
 5
 
 4
Sovos Compliance Formerly Taxware, LLC*#
One stop L + 7.25% 8.25% 03/2022 32,750
 32,154
 5.2
 32,095
Sovos Compliance Formerly Taxware, LLC(4)
One stop L + 7.25% 
N/A(5)
 03/2022 
 (1) 
 (1)
Sparta Holding Corporation*
One stop L + 5.50% 6.50% 07/2020 695
 695
 0.1
 695
Sparta Holding CorporationOne stop L + 5.50% 
N/A(5)
 07/2020 
 
 
 
Syncsort Incorporated*#
One stop L + 5.50% 6.50% 11/2021 14,253
 14,009
 2.3
 14,253
Syncsort Incorporated(4)
One stop L + 5.50% 
N/A(5)
 11/2021 
 (2) 
 
         122,556
 120,670
 19.8
 121,717
Grocery               
Teasdale Quality Foods, Inc.#
Senior loan L + 4.75% 5.77% 10/2020 175
 172
 
 177
Teasdale Quality Foods, Inc.*
Senior loan L + 4.75% 5.77% 10/2020 131
 130
 
 133
         306
 302
 
 310


23

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments - (continued)
September 30, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Healthcare, Education and Childcare              
   
   
   
Active Day, Inc.*#
One stop L + 6.00% 7.00% 12/2021 $11,642
 $11,466
 1.9
%$11,642
Active Day, Inc.(4)
One stop L + 6.00% 
N/A(5)
 12/2021 
 (2) 
 
Active Day, Inc.(4)
One stop L + 6.00% 
N/A(5)
 12/2021 
 (32) 
 
ADCS Clinics Intermediate Holdings, LLC#
One stop L + 5.75% 6.75% 05/2022 22,127
 21,711
 3.6
 22,127
ADCS Clinics Intermediate Holdings, LLCOne stop L + 5.75% 6.75% 05/2022 109
 108
 
 109
ADCS Clinics Intermediate Holdings, LLCOne stop L + 5.75% 6.75% 05/2022 32
 32
 
 32
ADCS Clinics Intermediate Holdings, LLCOne stop P + 4.75% 8.25% 05/2022 28
 26
 
 28
ADCS Clinics Intermediate Holdings, LLC(4)
One stop L + 5.75% 
N/A(5)
 05/2022 
 (5) 
 
Advanced Pain Management Holdings, Inc.#
Senior loan L + 5.00% 6.25% 02/2018 5,800
 5,797
 0.9
 5,626
Advanced Pain Management Holdings, Inc.#
Senior loan L + 5.00% 6.25% 02/2018 397
 396
 0.1
 385
Advanced Pain Management Holdings, Inc.(4)
Senior loan L + 5.00% 
N/A(5)
 02/2018 
 
 
 (30)
Agilitas USA, Inc.*
Senior loan L + 4.00% 5.00% 10/2020 512
 508
 0.1
 491
Apothecary Products, LLC*
Senior loan L + 4.00% 5.00% 02/2019 1,857
 1,857
 0.3
 1,857
Apothecary Products, LLCSenior loan L + 4.00% 5.04% 02/2019 472
 472
 0.1
 472
Aris Teleradiology Company, LLC*
Senior loan L + 4.75% 5.75% 03/2021 872
 865
 0.1
 872
Aris Teleradiology Company, LLCSenior loan L + 4.75% 
N/A(5)
 03/2021 
 
 
 
Avalign Technologies, Inc.*
Senior loan L + 4.50% 5.50% 07/2021 756
 753
 0.1
 756
BIORECLAMATIONIVT, LLC*#
One stop L + 6.25% 7.25% 01/2021 12,728
 12,538
 2.1
 12,728
BIORECLAMATIONIVT, LLC (4)
One stop L + 6.25% 
N/A(5)
 01/2021 
 (1) 
 
California Cryobank, LLC*
One stop L + 5.50% 6.50% 08/2019 2,667
 2,667
 0.4
 2,667
California Cryobank, LLCOne stop L + 5.50% 6.50% 08/2019 403
 403
 0.1
 403
California Cryobank, LLCOne stop L + 5.50% 
N/A(5)
 08/2019 
 
 
 
Certara L.P.*
One stop L + 6.25% 7.25% 12/2018 3,718
 3,714
 0.6
 3,718
Certara L.P.One stop L + 6.25% 
N/A(5)
 12/2018 
 
 
 
CLP Healthcare Services, Inc.*
Senior loan L + 5.25% 6.25% 12/2020 946
 937
 0.2
 946
CPI Buyer, LLC*
Senior loan L + 4.50% 5.50% 08/2021 3,193
 3,157
 0.5
 3,177
DCA Investment Holding, LLC*#
One stop L + 5.25% 6.25% 07/2021 14,750
 14,594
 2.4
 14,750
DCA Investment Holding, LLC*#
One stop L + 5.25% 6.25% 07/2021 13,764
 13,572
 2.2
 13,764
DCA Investment Holding, LLCOne stop P + 4.25% 7.75% 07/2021 1,442
 1,426
 0.2
 1,442
Deca Dental Management LLCOne stop L + 6.25% 7.25% 07/2020 7,596
 7,509
 1.2
 7,596
Deca Dental Management LLCOne stop L + 6.25% 7.25% 07/2020 924
 908
 0.1
 924
Deca Dental Management LLCOne stop L + 6.25% 7.25% 07/2020 50
 49
 
 50
Dental Holdings Corporation*
One stop L + 5.50% 6.50% 02/2020 3,386
 3,357
 0.5
 3,386
Dental Holdings CorporationOne stop L + 5.50% 6.50% 02/2020 515
 509
 0.1
 515
Dental Holdings CorporationOne stop P + 4.25% 7.75% 02/2020 95
 91
 
 95
eSolutions, Inc.*#
One stop L + 6.50% 7.50% 03/2022 11,928
 11,792
 1.9
 11,928
eSolutions, Inc.(4)
One stop L + 6.50% 
N/A(5)
 03/2022 
 (1) 
 
Katena Holdings, Inc.*
One stop L + 6.25% 7.25% 06/2021 4,567
 4,529
 0.7
 4,567
Katena Holdings, Inc.One stop P + 5.25% 8.75% 06/2021 446
 442
 0.1
 446
Katena Holdings, Inc.One stop P + 5.25% 8.75% 06/2021 13
 12
 
 13
Lombart Brothers, Inc.#
One stop L + 6.75% 7.75% 04/2022 3,263
 3,207
 0.5
 3,263
Lombart Brothers, Inc.One stop L + 6.75% 7.75% 04/2022 8
 7
 
 8
Maverick Healthcare Group, LLC#
Senior loan L + 7.50% 7.25% cash/2.00% PIK 04/2017 631
 628
 0.1
 631
Oliver Street Dermatology Holdings, LLC*#
One stop L + 6.50% 7.50% 05/2022 8,030
 7,886
 1.3
 8,030
Oliver Street Dermatology Holdings, LLCOne stop L + 6.50% 7.50% 05/2022 58
 57
 0.1
 58
Oliver Street Dermatology Holdings, LLC(4)
One stop L + 6.50% 
N/A(5)
 05/2022 
 (3) 
 
Pinnacle Treatment Centers, Inc.#
One stop L + 6.25% 7.25% 08/2021 9,846
 9,679
 1.6
 9,748
Pinnacle Treatment Centers, Inc.One stop P + 5.00% 8.50% 08/2021 5
 3
 
 4
Pinnacle Treatment Centers, Inc.(4)
One stop L + 6.25% 
N/A(5)
 08/2021 
 (3) 
 (1)
PPT Management, LLC*
One stop L + 5.00% 6.00% 04/2020 2,036
 2,018
 0.3
 2,036
PPT Management, LLCOne stop L + 5.00% 6.00% 04/2020 137
 136
 
 137


24

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments - (continued)
September 30, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Healthcare, Education and Childcare - (continued)               
PPT Management, LLC(4)
One stop L + 5.00% 
N/A(5)
 04/2020 $
 $(1) 
%$
Premise Health Holding Corp.*
One stop L + 4.50% 5.50% 06/2020 2,007
 2,007
 0.3
 2,007
Premise Health Holding Corp.One stop L + 4.50% 
N/A(5)
 06/2020 
 
 
 
Pyramid Healthcare, Inc.*
One stop L + 5.75% 6.75% 08/2019 358
 354
 0.1
 358
Radiology Partners, Inc.#
One stop L + 5.50% 6.50% 09/2020 4,443
 4,400
 0.7
 4,399
Reliant Pro ReHab, LLC*
Senior loan L + 5.00% 6.00% 12/2017 1,178
 1,175
 0.2
 1,178
Reliant Pro ReHab, LLCSenior loan P + 4.00% 7.50% 12/2017 14
 13
 
 14
RXH Buyer Corporation#
One stop L + 5.75% 6.75% 09/2021 11,248
 11,063
 1.8
 10,798
RXH Buyer CorporationOne stop L + 5.75% 6.75% 09/2021 1,273
 1,262
 0.2
 1,222
RXH Buyer CorporationOne stop P + 4.75% 8.25% 09/2021 35
 32
 
 27
RXH Buyer Corporation(4)
One stop L + 5.75% 
N/A(5)
 09/2021 
 (19) 
 (22)
Southern Anesthesia and Surgical*
One stop L + 5.50% 6.50% 11/2017 239
 239
 
 239
Southern Anesthesia and Surgical#
One stop L + 5.50% 6.50% 11/2017 117
 117
 
 117
Southern Anesthesia and SurgicalOne stop L + 5.50% 
N/A(5)
 11/2017 
 
 
 
Spear Education, LLC*
One stop L + 6.00% 7.00% 08/2019 3,570
 3,553
 0.6
 3,570
Spear Education, LLCOne stop L + 6.00% 7.00% 08/2019 183
 182
 
 183
Spear Education, LLC(4)
One stop L + 6.00% 
N/A(5)
 08/2019 
 (1) 
 
Summit Behavioral Holdings I, LLC*
One stop L + 5.00% 6.00% 06/2021 4,179
 4,129
 0.7
 4,179
Summit Behavioral Holdings I, LLC(4)
One stop L + 5.00% 
N/A(5)
 06/2021 
 (1) 
 
Summit Behavioral Holdings I, LLC(4)
One stop L + 5.00% 
N/A(5)
 06/2021 
 (2) 
 
Surgical Information Systems, LLC*
Senior loan L + 3.00% 4.50% 09/2018 176
 176
 
 176
U.S. Anesthesia Partners, Inc.*
One stop L + 5.00% 6.12% 12/2019 3,780
 3,780
 0.6
 3,780
WIRB-Copernicus Group, Inc.#
Senior loan L + 5.00% 6.00% 08/2022 9,482
 9,389
 1.5
 9,387
WIRB-Copernicus Group, Inc.(4)
Senior loan L + 5.00% 
N/A(5)
 08/2022 
 (1)   (1)
Young Innovations, Inc.*
Senior loan L + 4.75% 5.75% 01/2019 19
 19
 
 20
         194,050
 191,636
 31.1
 193,027
Home and Office Furnishings, Housewares, and Durable Consumer               
Plano Molding Company, LLC#
One stop L + 6.50% 7.50% 05/2021 8,655
 8,589
 1.3
 7,963
                
Hotels, Motels, Inns, and Gaming              
   
   
   
Aimbridge Hospitality, LLC*
Senior loan L + 4.50% 5.75% 10/2018 394
 388
 0.1
 394
                
Insurance               
Captive Resources Midco, LLC*#
One stop L + 5.75% 6.75% 06/2020 8,128
 8,051
 1.3
 8,128
Captive Resources Midco, LLC(4)
One stop L + 5.75% 
N/A(5)
 06/2020 
 (3) 
 
Captive Resources Midco, LLC(4)
One stop L + 5.75% 
N/A(5)
 06/2020 
 (9) 
 
Higginbotham Insurance Agency, Inc.*
Senior loan L + 5.25% 6.25% 11/2021 1,119
 1,109
 0.2
 1,120
Internet Pipeline, Inc.*#
One stop L + 7.25% 8.25% 08/2022 10,461
 10,310
 1.7
 10,461
Internet Pipeline, Inc.(4)
One stop L + 7.25% 
N/A(5)
 08/2021 
 (1) 
 
RSC Acquisition, Inc.*
Senior loan L + 5.25% 6.25% 11/2022 542
 537
 0.1
 542
          20,250
 19,994
 3.3
 20,251
Leisure, Amusement, Motion Pictures and Entertainment               
Competitor Group, Inc.#
One stop L + 9.25% 5.00% cash/5.50% PIK 11/2018 430
 391
 0.1
 398
Competitor Group, Inc.One stop L + 9.25% 5.00% cash/5.50% PIK 11/2018 50
 47
 
 46
Competitor Group, Inc.One stop L + 9.25% 5.00% cash/5.50% PIK 11/2018 6
 6
 
 6
NFD Operating, LLC*
One stop L + 7.00% 8.25% 06/2021 2,192
 2,160
 0.4
 2,192
NFD Operating, LLCOne stop L + 7.00% 
N/A(5)
 06/2021 
 
 
 
NFD Operating, LLC(4)
One stop L + 7.00% 
N/A(5)
 06/2021 
 (1) 
 
Teaching Company, The*#
One stop L + 6.25% 7.25% 08/2020 12,209
 12,138
 2.0
 12,209


25

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments - (continued)
September 30, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Leisure, Amusement, Motion Pictures and Entertainment - (continued)               
Teaching Company, TheOne stop L + 6.25% 7.25% 08/2020 $40
 $39
 
%$40
Titan Fitness, LLC*
One stop L + 6.50% 7.75% 09/2019 1,974
 1,974
 0.3
 1,974
Titan Fitness, LLCOne stop L + 6.50% 7.75% 09/2019 261
 261
 
 261
Titan Fitness, LLCOne stop L + 6.50% 7.75% 09/2019 87
 82
 
 87
Titan Fitness, LLCOne stop P + 5.25% 8.75% 09/2019 63
 63
 
 63
         17,312
 17,160
 2.8
 17,276
Mining, Steel, Iron and Non-Precious Metals               
Benetech, Inc.#
One stop L + 9.00% 10.25% 10/2017 192
 192
 
 169
Benetech, Inc.One stop P + 7.75% 11.25% 10/2017 7
 7
 
 1
         199
 199
 
 170
Oil and Gas               
Drilling Info, Inc.*
One stop L + 6.46% 7.46% 06/2020 3,960
 3,909
 0.6
 3,920
Drilling Info, Inc.One stop L + 6.55% 7.55% 06/2020 963
 946
 0.2
 953
         4,923
 4,855
 0.8
 4,873
Personal and Non-Durable Consumer Products               
Georgica Pine Clothiers, LLC*
One stop L + 5.50% 6.50% 11/2021 4,922
 4,880
 0.7
 4,922
Georgica Pine Clothiers, LLC#
One stop L + 5.50% 6.50% 11/2021 430
 426
 0.1
 430
Georgica Pine Clothiers, LLC(4)
One stop L + 5.50% 
N/A(5)
 11/2021 
 (1) 
 
Massage Envy, LLC*
One stop L + 7.25% 8.50% 09/2018 986
 986
 0.2
 986
Massage Envy, LLCOne stop L + 7.25% 
N/A(5)
 09/2018 
 
 
 
Orthotics Holdings, Inc#
One stop L + 5.00% 6.00% 02/2020 3,732
 3,700
 0.6
 3,545
Orthotics Holdings, Inc#(7)
One stop L + 5.00% 6.00% 02/2020 612
 607
 0.1
 581
Orthotics Holdings, IncOne stop L + 5.00% 6.00% 02/2020 62
 57
 
 34
Orthotics Holdings, Inc(4)(7)
One stop L + 5.00% 
N/A(5)
 02/2020 
 (1) 
 (3)
Orthotics Holdings, Inc(4)
One stop L + 5.00% 
N/A(5)
 02/2020 
 (5) 
 (31)
Team Technologies Acquisition Company*
Senior loan L + 5.00% 6.25% 12/2017 283
 283
 
 280
Team Technologies Acquisition Company#
Senior loan L + 5.50% 6.75% 12/2017 52
 52
 
 52
Team Technologies Acquisition CompanySenior loan L + 5.00% 
N/A(5)
 12/2017 $
 $
 
 $
         11,079
 10,984
 1.7
 10,796
Personal, Food and Miscellaneous Services               
Clarkson Eyecare LLC*#
One stop L + 6.25% 7.25% 04/2021 17,365
 17,120
 2.8
 17,191
Clarkson Eyecare LLCOne stop L + 6.25% 7.25% 04/2021 8,486
 8,342
 1.4
 8,392
Clarkson Eyecare LLCOne stop L + 6.25% 7.25% 04/2021 2,986
 2,958
 0.5
 2,956
Clarkson Eyecare LLCOne stop L + 6.25% 7.25% 04/2021 2,543
 2,520
 0.4
 2,517
Clarkson Eyecare LLCOne stop L + 6.25% 7.25% 04/2021 670
 670
 0.1
 663
Clarkson Eyecare LLCOne stop L + 6.25% 7.25% 04/2021 494
 483
 0.1
 489
Clarkson Eyecare LLCOne stop P + 5.25% 8.08% 04/2021 467
 462
 0.1
 462
Community Veterinary Partners, LLCOne stop L + 5.50% 6.50% 10/2021 17
 16
 
 16
Ignite Restaurant Group, Inc.*
One stop L + 7.00% 8.00% 02/2019 1,041
 1,041
 0.2
 1,020
PetVet Care Centers LLCSenior loan L + 4.75% 5.75% 12/2020 2,418
 2,397
 0.4
 2,418
PetVet Care Centers LLCSenior loan L + 4.75% 5.75% 12/2020 1,818
 1,788
 0.3
 1,818
PetVet Care Centers LLC(4)
Senior loan L + 4.75% 
N/A(5)
 12/2020 
 (14) 
 
R.G. Barry Corporation#Senior loan L + 5.00% 6.00% 09/2019 1,416
 1,416
 0.2
 1,402
Vetcor Professional Practices LLC*#
One stop L + 6.25% 7.25% 04/2021 27,554
 27,053
 4.5
 27,554
Vetcor Professional Practices LLC #
One stop L + 6.25% 7.25% 04/2021 634
 628
 0.1
 634
Vetcor Professional Practices LLCOne stop L + 6.25% 7.25% 04/2021 361
 329
 0.1
 361
Vetcor Professional Practices LLC*
One stop L + 6.25% 7.25% 04/2021 189
 187
 
 189
Vetcor Professional Practices LLCOne stop L + 6.25% 7.25% 04/2021 155
 153
 
 155
Vetcor Professional Practices LLC(4)
One stop L + 6.25% 
N/A(5)
 04/2021 
 (5) 
 


26

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments - (continued)
September 30, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Personal, Food and Miscellaneous Services - (continued)               
Vetcor Professional Practices LLC(4)
One stop L + 6.25% 
N/A(5)
 04/2021 $
 $(45) 
%$
Veterinary Specialists of North America, LLC#
One stop L + 5.25% 6.25% 07/2021 3,170
 3,130
 0.5
 3,138
Veterinary Specialists of North America, LLCOne stop L + 5.25% 6.25% 07/2021 33
 33
 
 33
Veterinary Specialists of North America, LLC(4)
One stop L + 5.25% 
N/A(5)
 07/2021 
 (2) 
 (2)
Veterinary Specialists of North America, LLC(4)
One stop L + 5.25% 
N/A(5)
 07/2021 
 (9) 
 (7)
Wetzel's Pretzels, LLC*
One stop L + 6.75% 7.75% 09/2021 6,563
 6,450
 1.1
 6,497
Wetzel's Pretzels, LLC(4)
One stop L + 6.75% 
N/A(5)
 09/2021 
 (1) 
 
          78,380
 77,100
 12.8
 77,896
Printing and Publishing               
Brandmuscle, Inc.#
Senior loan L + 5.00% 6.00% 12/2021 543
 538
 0.1
 548
Market Track, LLC*#
One stop L + 7.00% 8.00% 10/2019 19,620
 19,403
 3.2
 19,620
Market Track, LLC#
One stop L + 7.00% 8.00% 10/2019 4,983
 4,965
 0.8
 4,983
Market Track, LLC#
One stop L + 7.00% 8.00% 10/2019 2,262
 2,232
 0.4
 2,262
Market Track, LLCOne stop L + 7.00% 8.00% 10/2019 1,180
 1,162
 0.2
 1,180
Market Track, LLC*
One stop L + 7.00% 8.00% 10/2019 379
 378
 0.1
 379
Market Track, LLC#
One stop L + 7.00% 8.00% 10/2019 373
 370
 0.1
 373
Market Track, LLC*
One stop L + 7.00% 8.00% 10/2019 224
 223
 
 224
Marketo, Inc.One stop L + 9.50% 10.50% 08/2021 20,640
 20,036
 3.3
 20,330
Marketo, Inc.(4)
One stop L + 9.50% 
N/A(5)
 08/2021 
 (2) 
 (1)
         50,204
 49,305
 8.2
 49,898
Retail Stores               
Batteries Plus Holding Corporation*#
One stop L + 6.75% 7.75% 07/2022 13,218
 13,016
 2.1
 13,152
Batteries Plus Holding Corporation(4)
One stop L + 6.75% 
N/A(5)
 07/2022 
 (2) (0.1) (1)
CVS Holdings I, LP*#
One stop L + 6.25% 7.25% 08/2021 17,313
 17,048
 2.8
 17,055
CVS Holdings I, LP#
One stop L + 6.25% 7.25% 08/2021 250
 245
 
 246
CVS Holdings I, LP(4)
One stop L + 6.25% 
N/A(5)
 08/2020 
 (3) 
 (3)
CVS Holdings I, LP(4)
One stop L + 6.25% 
N/A(5)
 08/2021 
 (8) 
 (6)
Cycle Gear, Inc.*
One stop L + 6.50% 7.50% 01/2020 7,648
 7,561
 1.2
 7,648
Cycle Gear, Inc.(4)
One stop L + 6.50% 
N/A(5)
 01/2020 
 (10) 
 
Cycle Gear, Inc.(4)
One stop L + 6.50% 
N/A(5)
 01/2020 
 (10) 
 
DTLR, Inc.*#
One stop L + 6.50% 7.50% 10/2020 9,778
 9,700
 1.6
 9,778
Elite Sportswear, L.P.#
Senior loan L + 5.00% 6.00% 03/2020 1,257
 1,248
 0.2
 1,254
Elite Sportswear, L.P.#
Senior loan L + 5.25% 6.25% 03/2020 647
 641
 0.1
 650
Elite Sportswear, L.P.#
Senior loan L + 5.25% 6.25% 03/2020 98
 97
 0.1
 99
Elite Sportswear, L.P.Senior loan P + 3.75% 7.25% 03/2020 52
 50
 
 52
Express Oil Change, LLCSenior loan L + 5.00% 6.01% 12/2017 78
 77
 
 78
Feeders Supply Company, LLC#
One stop L + 5.75% 6.75% 04/2021 4,000
 3,954
 0.6
 4,000
Feeders Supply Company, LLCSubordinated debt N/A 12.50% cash/7.00% PIK 04/2021 40
 40
 
 40
Feeders Supply Company, LLC(4)
One stop L + 5.75% 
N/A(5)
 04/2021 
 (1) 
 
Marshall Retail Group, LLC, The#
One stop L + 6.00% 7.00%08/2020 3,198
 3,198
 0.5
 3,006
Marshall Retail Group, LLC, TheOne stop L + 6.00% 7.00% 08/2019 107
 107
 
 73
Mills Fleet Farm Group LLC*#
One stop L + 5.50% 6.50% 02/2022 30,662
 29,796
 5.0
 30,662
Pet Holdings ULC#(7)(8)
One stop L + 5.50% 6.50% 07/2022 32,675
 32,048
 5.2
 32,348
Pet Holdings ULC(7)(8)
One stop P + 4.50% 8.00% 07/2022 38
 35
 
 36
Pet Holdings ULC(4)(7)(8)
One stop L + 5.50% 
N/A(5)
 07/2022 
 (1) 
 (1)
Sneaker Villa, Inc.#One stop L + 7.75% 8.75% 12/2020 173
 171
 
 173
         121,232
 118,997
 19.3
 120,339
                
                


27

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments - (continued)
September 30, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Telecommunications              
   
   
   
Hosting.com Inc.*
Senior loan L + 4.50% 5.75% 12/2017 $595
 $595
 0.1
%$595
Hosting.com Inc.Senior loan L + 4.50% 5.75% 12/2017 67
 67
 
 67
Wilcon Operations LLC*
One stop L + 6.00% 7.00% 10/2018 2,718
 2,705
 0.4
 2,718
Wilcon Operations LLCOne stop L + 6.00% 7.00% 10/2018 1,004
 1,004
 0.2
 1,004
Wilcon Operations LLC*
One stop L + 6.00% 7.00% 10/2018 414
 410
 0.1
 414
Wilcon Operations LLCOne stop L + 6.00% 7.00% 10/2018 161
 158
 
 161
Wilcon Operations LLC(4)
One stop L + 6.00% 
N/A(5)
 10/2018 
 (24) 
 
          4,959
 4,915
 0.8
 4,959
Textile and Leather              
   
   
   
SHO Holding I Corporation*
Senior loan L + 5.00% 6.00% 10/2022 1,770
 1,730
 0.3
 1,770
SHO Holding I Corporation(4)
Senior loan L + 4.00% 
N/A(5)
 10/2021 
 (1) 
 (2)
          1,770
 1,729
 0.3
 1,768
Utilities              
   
   
   
Arcos, LLC*
One stop L + 6.50% 7.50% 02/2021 3,722
 3,689
 0.6
 3,722
Arcos, LLCOne stop L + 6.50% 
N/A(5)
 02/2021 
 
 
 
PowerPlan Holdings, Inc.*
Senior loan L + 4.75% 5.75% 02/2022 850
 835
 0.1
 850
          4,572
 4,524
 0.7
 4,572
Total non-controlled/non-affiliate company debt investments     $1,015,694
 $1,001,054
 163.3
%$1,007,683
                 
   
  
Equity Investments (9)(10)
               
Automobile               
Polk Acquisition Corp.LP interest N/A N/A N/A 
 $401
 0.1
%$401
                
Beverage, Food and Tobacco               
Hopdoddy Holdings, LLCLLC units N/A N/A N/A 17
 84
 
 32
Hopdoddy Holdings, LLCLLC units N/A N/A N/A 8
 24
 
 9
Purfoods, LLCLLC interest N/A N/A N/A 355
 355
 0.1
 355
           463
 0.1
 396
Chemicals, Plastics and Rubber               
Flexan, LLCPreferred stock N/A N/A N/A 
 33
 
 34
Flexan, LLCCommon stock N/A N/A N/A 
 
 
 
           33
 
 34
Diversified Conglomerate Manufacturing               
ICCN Acquisition Corp.Preferred stock N/A N/A N/A 
 259
 
 96
ICCN Acquisition Corp.Common stock N/A N/A N/A 
 
 
 
Reladyne, Inc.LP interest N/A N/A N/A 
 242
 
 242
           501
 
 338
Diversified Conglomerate Service               
Actiance, Inc.Warrant N/A N/A N/A 194
 46
 
 48
Agility Recovery Solutions Inc.Preferred stock N/A N/A N/A 30
 152
 
 272
Bomgar CorporationCommon stock N/A N/A N/A 1
 620
 0.1
 620
Bomgar CorporationCommon stock N/A N/A N/A 415
 6
 
 6
HealthcareSource HR, Inc.LLC interest N/A N/A N/A 
 165
 
 153
Host Analytics, Inc.Warrant N/A N/A N/A 80
 
 
 69
Project Alpha Intermediate Holding, Inc.Common stock N/A N/A N/A 
 399
 0.1
 399
Project Alpha Intermediate Holding, Inc.Common stock N/A N/A N/A 99
 4
 
 4
Quickbase, Inc.Common stock N/A N/A N/A 615
 615
 0.1
 642
Steelwedge Software, Inc.Warrant N/A N/A N/A 29,443
 61
 
 68
TA MHI Buyer, Inc.Preferred stock N/A N/A N/A 
 163
 
 210
Workforce Software, LLCLLC units N/A N/A N/A 1,309
 1,309
 0.2
 1,309


28

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments - (continued)
September 30, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Diversified Conglomerate Service - (continued)               
Xmatters, Inc. and Alarmpoint, Inc.Warrant N/A N/A N/A 39
 $31
 
%$31
           3,571
 0.5
 3,831
Ecological               
Pace Analytical Services, LLCCommon stock N/A N/A N/A 3
 274
 
 274
                
Electronics               
Diligent CorporationPreferred stock N/A N/A N/A 535
 535
 0.1
 535
Gamma Technologies, LLCLLC units N/A N/A N/A 1
 82
 
 114
SEI, Inc.LLC units N/A N/A N/A 207
 207
 0.1
 192
Sloan Company, Inc., TheLLC units N/A N/A N/A 
 59
 
 11
Sloan Company, Inc., TheLLC units N/A N/A N/A 1
 7
 
 
Syncsort IncorporatedPreferred stock N/A N/A N/A 78
 194
 0.1
 269
           1,084
 0.3
 1,121
Healthcare, Education and Childcare               
Active Day, Inc.LLC interest N/A N/A N/A 1
 529
 0.1
 608
ADCS Clinics Intermediate Holdings, LLCPreferred stock N/A N/A N/A 1
 596
 0.1
 596
ADCS Clinics Intermediate Holdings, LLCCommon stock N/A N/A N/A 
 6
 
 6
BIORECLAMATIONIVT, LLCLLC units N/A N/A N/A 
 323
 0.1
 353
DCA Investment Holding, LLCLLC units N/A N/A N/A 5,253
 525
 0.1
 572
DCA Investment Holding, LLCLLC units N/A N/A N/A 53
 5
 
 89
Deca Dental Management LLCLLC units N/A N/A N/A 651
 651
 0.1
 716
Dental Holdings CorporationLLC units N/A N/A N/A 345
 345
 0.1
 412
Encore GC Acquisition, LLCLLC units N/A N/A N/A 8
 81
 
 89
Encore GC Acquisition, LLCLLC units N/A N/A N/A 8
 
 
 16
Katena Holdings, Inc.LLC units N/A N/A N/A 
 205
 
 243
Lombart Brothers, Inc.Common stock N/A N/A N/A 
 99
 
 99
Oliver Street Dermatology Holdings, LLCLLC units N/A N/A N/A 
 218
 0.1
 218
Pinnacle Treatment Centers, Inc.Preferred stock N/A N/A N/A 
 216
 0.1
 216
Pinnacle Treatment Centers, Inc.Common stock N/A N/A N/A 2
 2
 0.1
 2
RXH Buyer CorporationLP interest N/A N/A N/A 4
 443
 
 244
           4,244
 0.9
 4,479
Insurance               
Internet Pipeline, Inc.Preferred stock N/A N/A N/A 
 207
 0.1
 239
Internet Pipeline, Inc.Common stock N/A N/A N/A 90
 2
 
 74
           209
 0.1
 313
Leisure, Amusement, Motion Pictures and Entertainment               
Competitor Group, Inc.#Preferred stock N/A N/A N/A 
 184
 
 3
Competitor Group, Inc.#Common stock N/A N/A N/A 1
 
 
 
           184
 
 3
Personal and Non Durable Consumer Products               
Georgica Pine Clothiers, LLCLLC units N/A N/A N/A 9
 92
 
 100
                
Personal, Food and Miscellaneous Services               
Clarkson Eyecare LLCLLC units N/A N/A N/A 
 63
 
 139
Community Veterinary Partners, LLCCommon stock N/A N/A N/A 1
 98
 
 124
Vetcor Professional Practices LLCLLC units N/A N/A N/A 498
 341
 0.1
 348
Vetcor Professional Practices LLCLLC units N/A N/A N/A 55
 55
 0.1
 405
Veterinary Specialists of North America, LLCLLC units N/A N/A N/A 
 56
 
 56
Wetzel's Pretzels, LLCCommon stock N/A N/A N/A 
 149
 
 149
           762
 0.2
 1,221


29

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments - (continued)
September 30, 2016
(In thousands)


 
Investment
Type
 
Spread
Above
Index(1)
 
Interest
Rate(2)
 
Maturity
Date
 
Principal/Par
Amount(3)
 Amortized Cost 
Percentage
of Net
Assets
 
Fair
Value
Printing and Publishing               
Brandmuscle, Inc.LLC interest N/A N/A N/A 
 $207
 0.1
%$235
                
Retail Stores               
Batteries Plus Holding CorporationLP interest N/A N/A N/A 5
 505
 0.1
 505
Cycle Gear, Inc.LLC units N/A N/A N/A 8
 111
 
 177
Elite Sportswear, L.P.LLC interest N/A N/A N/A 
 37
 
 49
Feeders Supply Company, LLCPreferred stock N/A N/A N/A 1
 145
 
 145
Pet Holdings ULC(7)(8)LP interest N/A N/A N/A 222
 188
 
 171
           986
 0.1
 1,047
Utilities               
PowerPlan Holdings, Inc.Common stock N/A N/A N/A 
 135
 
 156
PowerPlan Holdings, Inc.Common stock N/A N/A N/A 68
 1
 
 122
           136
 
 278
                
Total non-controlled/non-affiliate company equity investments       $13,147
 2.4
%$14,071
                
Total non-controlled/non-affiliate company investments     $1,015,694
 $1,014,201
 165.7
%$1,021,754
                
Controlled affiliate company investments(11)
            
Debt Investments               
Investment Funds and Vehicles                  
GCIC Senior Loan Fund LLC(7)
Subordinated debt L + 8.00% 8.44% 12/2021 $34,917
 $34,917
 5.7
%$34,917
                
Total controlled affiliate company debt investments       $34,917
 5.7
%$34,917
                 
Equity Investments(9)
               
Investment Funds and Vehicles               
GCIC Senior Loan Fund LLC(7)
LLC interest N/A N/A N/A   $12,258
 2.1
%$13,039
                
Total controlled affiliate company equity investments       $12,258
 2.1
%$13,039
                
Total controlled affiliate company investments     $34,917
 $47,175
 7.8
%$47,956
                
Total investments     $1,050,611
 $1,061,376
 173.5
%$1,069,710
           
Cash, Restricted Cash and Cash Equivalents           
   
   
   
Cash and Restricted Cash        
 $75,731
 12.3
%$75,731
Total Cash, Restricted Cash and Cash Equivalents    $75,731
 12.3
%$75,731
           
Total Investments and Cash, Restricted Cash and Cash Equivalents       $1,137,107
 185.8
%$1,145,441

 
# 
 Denotes that all or a portion of the loan collateralized the Credit Facility (as defined in Note 8).
* 
 
Denotes that all or a portion of the loan secures the notes offered in the GCIC 2016 Debt Securitization (as defined in Note 8).


(1) 
The majority of the investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (‘‘LIBOR’’LIBOR or ‘‘L’’) or Prime (‘‘P’’) and which reset daily, quarterly or semiannually. For each, the Company has provided the spread over LIBOR or Prime and the weighted average current interest rate in effect at September 30, 2016. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate loans, a spread above a reference rate is not applicable.


30

Golub Capital Investment Corporation and Subsidiaries
Consolidated Schedule of Investments - (continued)
September 30, 2016
(In thousands)


(2) 
For portfolio companies with multiple interest rate contracts, the interest rate shown is a weighted average current interest rate in effect at September 30, 2016.
(3) 
The total principal amount is presented for debt investments while the number of shares or units owned is presented for equity investments.
(4) 
The negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par.The negative amortized cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.
(5) 
The entire commitment was unfunded atas of September 30, 2016. As such, no interest is being earned on this investment.
(6) 
Loan was on non-accrual status as of September 30, 2016, meaning that the Company has ceased recognizing interest income on the loan.
(7) 
The investment is treated as a non-qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of September 30, 2016, total non-qualifying assets at fair value represented 7.1% of the Company’s assets calculated in accordance with the 1940 Act.
(8) 
The headquarters of this portfolio company is located in Canada.
(9) 
Non-income producing securities.
(10) 
Ownership of certain equity investments may occur through a holding company or partnership.
(11) 
As defined in the 1940 Act, the Company is deemed to be both an ‘‘Affiliated Person’’ of and ‘‘Control’’ this portfolio company as the Company owns more than 25% of the portfolio company’s outstanding voting securities or has the power to exercise control over management or policies of such portfolio company (including through a management agreement). See Note 6 in the accompanying notes to the consolidated financial statements for transactions during the year ended September 30, 2016 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control.



31

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   


Note 1.    Organization

Golub Capital Investment Corporation (“GCIC” and collectively with its subsidiaries, the “Company”) is an externally managed, closed-end, non-diversified management investment company that was formed on September 22, 2014 and commenced operations on December 31, 2014, the effective date of the Company’s election to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for U.S. federal income tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

The Company’s investment strategy is to invest primarily in senior secured and one stop (a loan that combines characteristics of traditional first lien senior secured loans and second lien or subordinated loans) loans of U.S. middle-market companies. The Company may also selectively invest in second lien and subordinated (a loan that ranks senior only to a borrower’s equity securities and ranks junior to all of such borrower’s other indebtedness in priority of payment) loans of, and warrants and minority equity securities in, U.S. middle-market companies. The Company has entered into an investment advisory agreement (the “Investment Advisory Agreement”) with GC Advisors LLC (the “Investment Adviser”), under which the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, the Company. Under an administration agreement (the “Administration Agreement”) the Company is provided with certain services by an administrator (the “Administrator”), which is currently Golub Capital LLC.

Note 2.    Significant Accounting Policies and Recent Accounting Updates

Basis of presentation: The Company is an investment company as defined in the accounting and reporting guidance under Accounting Standards Codification (“ASC”) Topic 946 - Financial Services - Investment Companies (“ASC Topic 946”).

The accompanying interim consolidated financial statements of the Company and related financial information have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the requirements for reporting under Articles 6 and 10 of Regulation S-X. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications consisting solely of normal accruals that are necessary for the fair presentation of financial results as of and for the periods presented. All intercompany balances and transactions have been eliminated. Certain prior period amounts have been reclassified to conform to the current period presentation.

Fair value of financial instruments: The Company applies fair value to all of its financial instruments in accordance with ASC Topic 820 - Fair Value Measurement (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.



32

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3.

Any changes to the valuation methodology are reviewed by management and the Company’s board of directors (the “Board”) to confirm that the changes are appropriate. As markets change, new products develop and the pricing for products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See further description of fair value methodology in Note 7.

Use of estimates: The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Consolidation: As provided under Regulation S-X and ASC Topic 946, the Company will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the results of the Company’s wholly-owned subsidiaries, GCIC Holdings LLC (“GCIC Holdings”), GCIC Funding LLC (“GCIC Funding”), GCIC Equity LLC (“GCIC Equity”) and Golub Capital Investment Corporation CLO 2016(M) LLC (“GCIC 2016 Issuer”), in its consolidated financial statements. Effective May 2, 2016, GCIC Equity merged with GCIC Holdings, with GCIC Holdings remaining as the surviving limited liability company (“LLC”). The Company does not consolidate its non-controlling interest in GCIC Senior Loan Fund, LLC (“GCIC SLF”). See further description of the Company’s investment in GCIC SLF in Note 5.

Assets related to transactions that do not meet ASC Topic 860 - Transfers and Servicing (“ASC Topic 860”) requirements for accounting sale treatment are reflected in the Company’s consolidated statements of financial condition as investments. Those assets are owned by special purpose entities, including GCIC Funding and GCIC 2016 Issuer, that are consolidated in the Company’s consolidated financial statements. The creditors of the special purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of GCIC (or any affiliate of GCIC).

Cash and cash equivalents: Cash and cash equivalents are highly liquid investments with an original maturity of three months or less at the date of acquisition. The Company deposits its cash in financial institutions and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limits.

Restricted cash and cash equivalents: Restricted cash and cash equivalents include amounts that are collected and are held by trustees who have been appointed as custodians of the assets securing certain of the Company’s financing transactions. Restricted cash and cash equivalents are held by the trustees for payment of interest expense and principal on the outstanding borrowings or reinvestment into new assets.



33

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

Revenue recognition:

Investments and related investment income: Interest income is accrued based upon the outstanding principal amount and contractual interest terms of debt investments.

Loan origination fees, original issue discount and market discount or premium are capitalized, and the Company accretes or amortizes such amounts over the life of the loan as interest income. For the three and sixnine months ended March 31,June 30, 2017, interest income included $989$2,211 and $2,379,$4,590, respectively, of accretion of discounts. For the three and sixnine months ended March 31,June 30, 2016, interest income included $887$652 and $1,403,$2,055, respectively, of accretion of discounts. For the three and sixnine months ended March 31,June 30, 2017, the Company received loan origination fees of $1,256$4,482 and $2,920,$7,402, respectively. For the three and sixnine months ended March 31,June 30, 2016, the Company received loan origination fees of $3,644$4,556 and $5,048,$9,604, respectively.

For investments with contractual payment-in-kind (“PIK”) interest, which represents contractual interest accrued and added to the principal balance that generally becomes due at maturity, the Company will not accrue PIK interest if the portfolio company valuation indicates that the PIK interest is not collectible. For the three and sixnine months ended March 31,June 30, 2017, the Company recorded PIK income of $463$469 and $908,$1,377, respectively, and received PIK payments in cash of $65$9 and $65,$74, respectively. For the three and sixnine months ended March 31,June 30, 2016, the Company recorded PIK income of $44$120 and $21,$164, respectively, and received PIK payments in cash of $0$1 and $0,$1, respectively.

In addition, the Company may generate revenue in the form of amendment, structuring or due diligence fees, fees for providing managerial assistance, consulting fees and prepayment premiums on loans. The Company records these fees as fee income when received. All other income is recorded into income when earned. For the three and sixnine months ended March 31,June 30, 2017, fee income included $62$820 and $205,$1,025, respectively, of prepayment premiums. For the three and sixnine months ended March 31,June 30, 2016, fee income included $361$1 and $366,$362, respectively, of prepayment premiums.

For the three and sixnine months ended March 31,June 30, 2017, the Company received interest and fee income in cash, which excludes capitalized loan origination fees, of $19,063$22,275 and $38,681,$60,956, respectively. For the three and sixnine months ended March 31,June 30, 2016, the Company received interest and fee income in cash, which excludes capitalized loan origination fees, of $10,932$13,128 and $20,968,$34,095, respectively.

Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Each distribution received from LLC and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the amortized cost basis of the investment. For the three and sixnine months ended March 31,June 30, 2017, the Company recorded dividend income of $1,242$1,373 and $1,664,$3,037, respectively, and return of capital distributions of $4,763$4,479 and $4,809,$9,288, respectively. For the three and sixnine months ended March 31,June 30, 2016, the Company recorded dividend income of $17$48 and $65, respectively, and return of capital distributions of $39.$157 and $196, respectively.

Investment transactions are accounted for on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the amortized cost basis


34

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

of investment, without regard to unrealized gains or losses previously recognized. The Company reports current period changes in fair value of investments that are measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments in the consolidated statements of operations.

Non-accrual loans: A loan may be left on accrual status during the period the Company is pursuing repayment of the loan. Management reviews all loans that become 90 days or more past due on principal and interest, or when there is reasonable doubt that principal or interest will be collected, for possible placement on non-accrual status. When a loan is placed on non-accrual status, unpaid interest credited to income is reversed. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal and interest is paid and, in management’s judgment, payments are likely to remain current. The total fair value of non-accrual loans was $16$420 and $16 as of March 31,June 30, 2017 and September 30, 2016, respectively.

Income taxes: The Company has elected to be treated as a RIC under Subchapter M of the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. In order to qualify and be subject to tax as a RIC, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute dividends for U.S. federal income tax purposes to its stockholders of an amount generally at least equal to 90% of its investment company taxable income, as defined by the Code and determined without regard to any deduction for dividends paid, for each tax year. The Company has made, and intends to continue to make, the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal income taxes with respect to all income distributed to its stockholders.

Depending on the level of taxable income earned in a tax year, the Company may choose to retain taxable income in excess of current year dividend distributions, and would distribute such taxable income in the next tax year. The Company would then pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. For each of the three and sixnine months ended March 31,June 30, 2017 and 2016, no amount was incurred for U.S. federal excise tax.

The Company accounts for income taxes in conformity with ASC Topic 740 - Income Taxes (“ASC Topic 740”). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense or tax benefit in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits in income tax expense. There were no material unrecognized tax benefits or unrecognized tax liabilities related to uncertain income tax positions through March 31,June 30, 2017. The Company's tax returns for the 2014 through 2016 tax years remain subject to examination by U.S. federal and most state tax authorities.

Distributions: Distributions to common stockholders are recorded on the record date. Subject to the discretion of and as determined by the Board, the Company intends to authorize and declare ordinary cash distributions based on a formula approved by the Board on a quarterly basis. The amount to be paid out


35

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

as a dividend or distribution is determined by the Board each quarter and is generally based upon the earnings estimated by management. Net realized capital gains, if any, are distributed at least annually, although the Company may decide to retain such capital gains for investment.

The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of any distributions the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, if the Board authorizes and the Company declares a cash distribution, then stockholders who have not “opted out” of the DRIP will have their cash distribution automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash distribution. Shares issued under the DRIP will be issued at a price per share equal to the most recent net asset value (“NAV”) per share as determined by the Board.

Deferred debt issuance costs: Deferred debt issuance costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings. As of March 31,June 30, 2017 and September 30, 2016, the Company had deferred debt issuance costs of $3,330$2,910 and $5,073, respectively. These amounts are amortized and included in interest expense in the consolidated statements of operations over the estimated average life of the borrowings. Amortization expense for the three and sixnine months ended March 31,June 30, 2017 was $882$741 and $1,781,$2,522, respectively. Amortization expense for the three and sixnine months ended March 31,June 30, 2016 was $486$545 and $964,$1,509, respectively.

Recent accounting pronouncements:  In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash a consensus of FASB Emerging Issues Task Force, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This guidance is effective for annual reporting periods, and the interim periods within those periods, beginning after December 15, 2017 and early adoption is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements.

Note 3.    Stockholders’ Equity

GCIC is authorized to issue 1,000,000 shares of preferred stock at a par value of $0.001 per share and 100,000,000 shares of common stock at a par value of $0.001 per share. Since the commencement of operations on December 31, 2014, GCIC entered into subscription agreements (collectively, the “Subscription Agreements”) with several investors, including with affiliates of the Investment Adviser, providing for the private placement of GCIC’s common stock. Under the terms of the Subscription Agreements, investors are required to fund drawdowns to purchase GCIC’s common stock, at a price per share equal to the most recent NAV per share as determined by the Board (subject to adjustment to the extent required by Section 23 of the 1940 Act), up to the amount of their respective capital subscriptions on an as-needed basis as determined by GCIC with a minimum of 10 calendar days prior notice.

As of March 31,June 30, 2017 and September 30, 2016, GCIC had the following subscriptions, pursuant to the Subscription Agreements, and contributions from its stockholders:
As of March 31, 2017 As of September 30, 2016As of June 30, 2017 As of September 30, 2016
 Subscriptions  Contributions  Subscriptions  Contributions Subscriptions  Contributions  Subscriptions  Contributions
GCIC Stockholders$1,301,643
 $594,263
 $942,904
 $594,263
$1,301,643
 $660,422
 $942,904
 $594,263
Total$1,301,643
 $594,263
 $942,904
 $594,263
$1,301,643
 $660,422
 $942,904
 $594,263



36

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

As of March 31,June 30, 2017 and September 30, 2016, the ratio of total contributed capital to total capital subscriptions was 45.7%50.7% and 63.0%, respectively, and GCIC had uncalled capital commitments of $707,380$641,221 and $348,641, respectively.

The following table summarizes the shares of GCIC common stock issued and outstanding for the sixnine months ended March 31,June 30, 2017 and 2016:
Date Shares Issued NAV ($) per share ProceedsDate Shares Issued NAV ($) per share Proceeds
            
Shares outstanding, September 30, 2015 20,843,155.219
 $15.00
 $312,647
 20,843,155.219
 $15.00
 $312,647
            
Issuance of shares11/06/2015 1,329,458.533
 15.00
 19,942
11/06/2015 1,329,458.533
 15.00
 19,942
Issuance of shares12/14/2015 2,078,187.800
 15.00
 31,173
12/14/2015 2,078,187.800
 15.00
 31,173
Issuance of shares02/23/2016 2,488,930.923
 15.00
 37,334
02/23/2016 2,488,930.923
 15.00
 37,334
Issuance of shares05/16/2016 1,994,478.077
 15.00
 29,917
Issuance of shares06/02/2016 1,994,478.077
 15.00
 29,917
Issuance of shares06/21/2016 2,707,383.731
 15.00
 40,611
      
Shares issued for capital drawdowns 5,896,577.256
 $15.00
 $88,449
 12,592,917.141
 $15.00
 $188,894
            
Issuance of shares (1)
11/20/2015 182,861.440
 15.00
 2,743
11/20/2015 182,861.440
 15.00
 2,743
Issuance of shares (1)
12/30/2015 168,295.009
 15.00
 2,524
12/30/2015 168,295.009
 15.00
 2,524
Issuance of shares (1)
02/26/2016 170,848.215
 15.00
 2,563
02/26/2016 170,848.215
 15.00
 2,563
Issuance of shares (1)
05/20/2016 164,469.664
 15.00
 2,467
Shares issued through DRIP 522,004.664
 $15.00
 $7,830
 686,474.328
 $15.00
 $10,297
            
Shares outstanding, March 31, 2016 27,261,737.139
 $15.00
 $408,926
Shares outstanding, June 30, 2016 34,122,546.688
 $15.00
 $511,838
            
Shares outstanding, September 30, 2016 41,087,178.250
 $15.00
 $616,307
 41,087,178.250
 $15.00
 $616,307
            
Issuance of shares04/03/2017 2,187,285.533
 $15.00
 32,809
Issuance of shares05/01/2017 2,223,285.533
 $15.00
 33,349
      
Shares issued for capital drawdowns 4,410,571.066
 $15.00
 $66,158
      
Issuance of shares (1)
11/21/2016 355,195.794
 15.00
 5,329
Issuance of shares (1)
11/21/2016 355,195.794
 15.00
 5,329
12/30/2016 327,120.972
 15.00
 4,907
Issuance of shares (1)
12/30/2016 327,120.972
 15.00
 4,907
02/27/2017 335,502.470
 15.00
 5,032
Issuance of shares (1)
02/27/2017 335,502.470
 15.00
 5,032
05/19/2017 313,775.384
 15.00
 4,707
Shares issued through DRIP 1,017,819.236
 $15.00
 $15,268
 1,331,594.620
 $15.00
 $19,975
            
Shares outstanding, March 31, 2017 42,104,997.486
 $15.00
 $631,575
Shares outstanding, June 30, 2017 46,829,343.936
 $15.00
 $702,440
 
(1) 
Shares issued through the DRIP.


37

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)


Note 4.    Related Party Transactions

Investment Advisory Agreement: Under the Investment Advisory Agreement, the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, GCIC. The Board most recently reapproved the Investment Advisory Agreement in May 2017. The Investment Adviser is a registered investment adviser with the Securities and Exchange Commission (the “SEC”). The Investment Adviser receives fees for providing services, consisting of two components, a base management fee and an Incentive Fee (as defined below).



37

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

The base management fee is calculated at an annual rate equal to the lesser of (a) 1.50% or (b) the base management fee of Golub Capital BDC, Inc. (currently 1.375%) in either case on the fair value of the average adjusted gross assets of the Company at the end of the two most recently completed calendar quarters (including assets purchased with borrowed funds and securitization-related assets, leverage and cash collateral on deposit with custodian but adjusted to exclude cash and cash equivalents and restricted cash and cash equivalents so that investors do not pay the base management fee on such assets) and is payable quarterly in arrears. The base management fee is adjusted, based on the actual number of days elapsed relative to the total number of days in such calendar quarter, for any share issuances or repurchases during such calendar quarter. Base management fees for any partial quarter are appropriately pro-rated. For purposes of the Investment Advisory Agreement, cash equivalents means U.S. government securities and commercial paper instruments maturing within 270 days of purchase (which is different than the GAAP definition, which defines cash equivalents as U.S. government securities and commercial paper instruments maturing within 90 days of purchase). To the extent that the Investment Adviser or any of its affiliates provides investment advisory, collateral management or other similar services to a subsidiary of GCIC, the base management fee shall be reduced by an amount equal to the product of (1) the total fees paid to the Investment Adviser by such subsidiary for such services and (2) the percentage of such subsidiary’s total equity, including membership interests and any class of notes not exclusively held by one or more third parties, that is owned, directly or indirectly, by the Company. For periods prior to the earlier of (1) the date of the pricing of an initial public offering or listing on a national securities exchange of the securities of GCIC or (2) a sale of all or substantially all of the Company’s assets to, or other liquidity event with, an entity for consideration of publicly listed securities of the acquirer (each, a “Liquidity Event”), the Investment Adviser has irrevocably agreed to waive any base management fee in excess of 1.00% of the fair value of the Company’s average adjusted gross assets as calculated in accordance with the Investment Advisory Agreement and as described above. For the three and sixnine months ended March 31,June 30, 2017, the base management fee irrevocably waived by the Investment Adviser was $1,059$1,162 and $2,094,$3,256, respectively. For the three and sixnine months ended March 31,June 30, 2016, the base management fee irrevocably waived by the Investment Adviser was $584$729 and $1,127,$1,856, respectively.

The Incentive Fee consists of three parts: the income component (the “Income Incentive Fee”), the capital gains component (the “Capital Gain Incentive Fee”) and the subordinated liquidation incentive component (the “Subordinated Liquidation Incentive Fee” and, together with the Income Incentive Fee and the Capital Gain Incentive Fee, the “Incentive Fee”).

The Income Incentive Fee is calculated quarterly in arrears based on Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter. “Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the calendar quarter (including the base management


38

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

fee, taxes, any expenses payable under the Investment Advisory Agreement and the Administration Agreement, any expenses of securitizations and any interest expense and dividends paid on any outstanding preferred stock, but excluding the Incentive Fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature such as market discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities, accrued income that the Company has not yet received in cash.

Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Because of the structure of the Income Incentive Fee, it is possible that an Incentive Fee may be calculated under this formula with respect to a period in


38

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

which the Company has incurred a loss. For example, if the Company receives Pre-Incentive Fee Net Investment Income in excess of the hurdle rate (as defined below) for a calendar quarter, the Income Incentive Fee will result in a positive value and an Income Incentive Fee will be paid unless the payment of such Income Incentive Fee would be subject to the Incentive Fee Cap defined below.

Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any Incentive Fees payable during the period) at the end of the immediately preceding calendar quarter, is compared to a fixed “hurdle rate” of 1.5% quarterly. If market interest rates rise, the Company may be able to invest funds in debt instruments that provide for a higher return, which would increase Pre-Incentive Fee Net Investment Income and make it easier for the Investment Adviser to surpass the fixed hurdle rate and receive an Incentive Fee based on such net investment income. The Company’s Pre-Incentive Fee Net Investment Income used to calculate this part of the Incentive Fee is also included in the amount of its total assets (excluding cash and cash equivalents but including assets purchased with borrowed funds and leverage) used to calculate the base management fee annual rate.

The Company calculates the Income Incentive Fee with respect to its Pre-Incentive Fee Net Investment Income quarterly, in arrears, as follows:

Zero in any calendar quarter in which the Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate;
50.0% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than the percentage at which the amount payable to the Investment Adviser equals 20.0% of the Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply. This portion of the Company’s Pre-Incentive Fee Net Investment Income that exceeds the hurdle rate is referred to as the “catch-up” provision; and
20.0% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds the catch-up provision in any calendar quarter.

The sum of these calculations yields the Income Incentive Fee. This amount is appropriately adjusted for any share issuances or repurchases during the quarter. For the three and sixnine months ended March 31,June 30, 2017, the Income Incentive Fee incurred was $1,830$3,256 and $3,876,$7,132, respectively. For the three and sixnine months ended March 31,June 30, 2016, the Income Incentive Fee incurred was $1,042$1,336 and $1,705,$3,041, respectively.

For periods prior to a Liquidity Event, the Investment Adviser has irrevocably agreed to waive the Income Incentive fee calculated under the Investment Advisory Agreement in amounts in excess of the following amounts (computed on a quarterly basis, in arrears):



39

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

zero in any calendar quarter in which the Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate;
50.0% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than the percentage at which the amount payable to the Investment Adviser equals to 15.0% of the Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply. This portion of the Company’s Pre-Incentive Fee Net Investment Income that exceeds the hurdle rate is referred to as the “catch-up” provision; and
15.0% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds the catch-up provision in any calendar quarter.


39

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)


For the three and sixnine months ended March 31,June 30, 2017, the Income Incentive Fee irrevocably waived by the Investment Adviser was $0$733 and $16,$749, respectively. For the three and sixnine months ended March 31,June 30, 2016, the Income Incentive Fee irrevocably waived by the Investment Adviser was $0 and $0, respectively.

The second part of the Incentive Fee, the Capital Gain Incentive Fee, equals (a) 20.0% of the Company’s Capital Gain Incentive Fee Base (as defined below), if any, calculated in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), commencing with the calendar year ending December 31, 2015, less (b) the aggregate amount of any previously paid Capital Gain Incentive Fees. The Company’s “Capital Gain Incentive Fee Base” equals (1) the sum of (i) realized capital gains, if any, on a cumulative positive basis from December 31, 2014, the date the Company elected to become a BDC, through the end of each calendar year, (ii) all realized capital losses on a cumulative basis and (iii) all unrealized capital depreciation on a cumulative basis less (2) all unamortized deferred debt issuance costs, if and to the extent such costs exceed all unrealized capital appreciation on a cumulative basis.

The cumulative aggregate realized capital losses are calculated as the sum of the amounts by which (a) the net sales price of each investment in the Company’s portfolio when sold is less than (b) the accreted or amortized cost basis of such investment.
The cumulative aggregate realized capital gains are calculated as the sum of the differences, if positive, between (a) the net sales price of each investment in the Company’s portfolio when sold and (b) the accreted or amortized cost basis of such investment.
The aggregate unrealized capital depreciation is calculated as the sum of the differences, if negative, between (a) the valuation of each investment in the Company’s portfolio as of the applicable Capital Gain Incentive Fee calculation date and (b) the accreted or amortized cost basis of such investment.

The Capital Gain Incentive Fee is calculated on a cumulative basis from December 31, 2014 through the end of each calendar year. Prior to the closing of a Liquidity Event, the Investment Adviser has agreed to waive that portion of the Capital Gain Incentive Fee, calculated as described above, in excess of 15.0% of the Capital Gain Incentive Fee Base, provided that any amounts so waived shall be deemed to have been paid to the Investment Adviser for purposes of determining the Capital Gain Incentive Fee payable after the closing of a public offering.

There was no Capital Gain Incentive Fee as calculated under the Investment Advisory Agreement (as described above) payable for the three and sixnine months ended March 31,June 30, 2017 and 2016. However, in accordance with GAAP, the Company is required to include the aggregate unrealized capital appreciation on investments in the calculation and accrue a capital gain incentive fee on a quarterly basis, as if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not


40

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

permitted to be considered in calculating the fee actually payable under the Investment Advisory Agreement. If the Capital Gain Incentive Fee Base, adjusted as required by GAAP to include unrealized appreciation, is positive at the end of a period, then GAAP requires the Company to accrue a capital gain incentive fee equal to 15.0% prior to a Liquidity Event (20.0% following a Liquidity Event) of such amount, less the aggregate amount of the actual Capital Gain Incentive Fees paid and capital gain incentive fees accrued under GAAP in all prior periods. If such amount is negative, then there is no accrual for such period. The resulting accrual under GAAP in a given period may result in additional expense if such cumulative amount is greater than in the prior period or a reversal of previously recorded expense if such cumulative amount is less than in the prior period. There can be no assurance that such unrealized capital appreciation will be realized in the future. For the three and sixnine months ended March


40

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

31,June 30, 2017, the Company accrued a capital gain incentive fee under GAAP of $392$58 and $1,090,$1,148, respectively, which are included in incentive fee in the consolidated statements of operations. For the three and sixnine months ended March 31,June 30, 2016, the Company accrued a capital gain incentive fee under GAAP of $135$383 and $274,$657, respectively, which are included in incentive fee in the consolidated statements of operations. As of March 31,June 30, 2017 and September 30, 2016, included in management and incentive fees payable on the consolidated statements of financial condition were $1,714$1,772 and $624, respectively, for accruals for capital gain incentive fees under GAAP.

The third part of the Incentive Fee, the Subordinated Liquidation Incentive Fee, equals 20.0% of the net proceeds from a liquidation of the Company in excess of adjusted capital, as calculated immediately prior to liquidation; subject, however, to the limit of cumulative Incentive Fees of all types not exceeding the Incentive Fee Cap (as defined below). For purposes of this calculation, “liquidation” will include any merger of the Company with another entity or the acquisition of all or substantially all of the shares of common stock of GCIC in a single or series of related transactions. The Investment Advisory Agreement provides that no Subordinated Liquidation Incentive Fee shall be payable for any liquidation that occurs more than six months after the date of a public offering of securities of GCIC. For periods prior to the closing of a Liquidity Event, the Investment Adviser has agreed to waive that portion of the Subordinated Liquidation Incentive Fee in excess of 10.0% of the net proceeds from liquidation in excess of adjusted capital, as calculated immediately prior to liquidation.

The Company has structured the calculation of the Incentive Fee to include a fee limitation such that an Incentive Fee for any quarter can only be paid to the Investment Adviser if, after such payment, the cumulative Incentive Fees paid to the Investment Adviser since December 31, 2014, would be less than or equal to 20.0% of the Company’s Cumulative Pre-Incentive Fee Net Income (the “Incentive Fee Cap”). Cumulative Pre-Incentive Fee Net Income is equal to the sum of (a) Pre-Incentive Fee Net Investment Income for each period from December 31, 2014 and (b) cumulative aggregate realized capital gains, cumulative aggregate realized capital losses, cumulative aggregate unrealized capital depreciation and cumulative aggregate unrealized capital appreciation from December 31, 2014. For periods prior to a Liquidity Event, the Investment Adviser has agreed to irrevocably waive any Incentive Fee payable in excess of 15.0% of the Company’s Cumulative Pre-Incentive Fee Net Income; provided that any amounts so waived shall be deemed to have been paid to the Investment Adviser for purposes of the Incentive Fee Cap after the closing of such Liquidity Event.

The sum of the Income Incentive Fee, the Capital Gain Incentive Fee and the Subordinated Liquidation Incentive Fee is the Incentive Fee. The Company will deposit one-third of each Incentive Fee payment into an escrow account (the “Escrow Account”) administered by The Bank of New York Mellon (the “Escrow Agent”). Assets in the Escrow Account will be held by the Escrow Agent until the closing of a Liquidity Event at which time the Escrow Agent will release the assets to the Investment Adviser. If no Liquidity Event occurs prior to December 31, 2020, the Escrow Agent will return all assets in the Escrow


41

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

Account to the Company for the benefit of its stockholders. For the three and sixnine months ended March 31,June 30, 2017, the Company deposited $676$610 and $1,300,$1,910, respectively, into the Escrow Account. For the three and sixnine months ended March 31,June 30, 2016, the Company deposited $221$347 and $430,$777, respectively, into the Escrow Account. As of March 31,June 30, 2017, the Company has made deposits totaling $2,726$3,336 into the Escrow Account.

Administration Agreement: Under the Administration Agreement, the Administrator furnishes the Company with office facilities and equipment, provides the Company with clerical, bookkeeping and record keeping services at such facilities and provides the Company with other administrative services as the Administrator, subject to review by the Board, determines necessary to conduct the Company’s day-


41

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

to-dayday-to-day operations. GCIC reimburses the Administrator the allocable portion (subject to the review and approval of the Board) of overhead and other expenses incurred by it in performing its obligations under the Administration Agreement, including rent, fees and expenses associated with performing compliance functions and GCIC’s allocable portion of the cost of its chief financial officer and chief compliance officer and their respective staffs. The Board reviews such expenses to determine that these expenses are reasonable and comparable to administrative services charged by unaffiliated third party asset managers. Under the Administration Agreement, the Administrator also provides, on the Company’s behalf, managerial assistance to those portfolio companies to which the Company is required to provide such assistance and will be paid an additional amount based on the cost of the services provided, which amount shall not exceed the amount the Company receives from such portfolio companies.

Included in accounts payable and accrued expenses is $343$401 and $280 as of March 31,June 30, 2017 and September 30, 2016, respectively, for accrued allocated shared services under the Administration Agreement.

Other related party transactions: The Company has agreed to reimburse the Investment Adviser for the organization and offering costs incurred on its behalf up to an aggregate amount of $700. Organization and offering costs include, among other things, the cost of incorporating the Company, including legal, accounting, regulatory filing and other fees pertaining to the Company’s organization, as well as expenses for the registration and offering of shares of GCIC common stock that were paid by the Investment Adviser on behalf of the Company. As of March 31,June 30, 2017 and September 30, 2016, the organization and offering costs incurred by the Company totaled $700 and $534, respectively.

The Administrator pays for certain unaffiliated third-party expenses incurred by the Company. Such expenses include postage, printing, office supplies, rating agency fees and professional fees. These expenses are not marked-up and represent the same amount the Company would have paid had the Company paid the expenses directly. These expenses are subsequently reimbursed in cash.

Total expenses reimbursed to the Administrator during the three and sixnine months ended March 31,June 30, 2017 were $520$180 and $782,$962, respectively. Total expenses reimbursed to the Administrator during the three and sixnine months ended March 31,June 30, 2016 were $423$36 and $476,$513, respectively.

As of March 31,June 30, 2017 and September 30, 2016, included in accounts payable and accrued expenses were $194$237 and $262, respectively, for accrued expenses paid on behalf of the Company by the Administrator.

During the three and sixnine months ended March 31,June 30, 2017, the Company sold $13,140$1,692 and $36,873,$38,565, respectively, of investments and unfunded commitments to GCIC SLF at fair value and recognized $134$8 and $331,$339, respectively, of net realized gains. During the three and sixnine months ended March 31,June 30, 2016, the Company sold $49,480$29,632 and $140,122,$169,754, respectively, of investments and unfunded commitments to GCIC SLF at fair value and recognized $54$165 and $739,$904, respectively, of net realized gains.



42

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

On December 30, 2014, the Investment Adviser transferred 666.670 shares of the Company’s common stock acquired in connection with the Company’s formation to GCOP LLC, an affiliate of the Investment Adviser, for $10. In addition, on December 31, 2014, GCOP LLC entered into a $15,000 subscription agreement to purchase shares of the Company’s common stock in a private placement. As of March 31,June 30, 2017, the Company has issued 1,004,905.973 shares of its common stock, including through the DRIP, to GCOP LLC in exchange for aggregate capital contributions totaling $15,074.

On December 31, 2014, GEMS Fund, L.P. ("GEMS") entered into a $40,000 subscription agreement to purchase shares of the Company’s common stock in a private placement. In connection with the


42

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

Company’s acquisition of GCIC Holdings and GCIC Funding from GEMS on December 31, 2014, the Company issued 2,666,666.667 shares of its common stock and entered into an $11,820 short-term unsecured promissory note with GEMS (“GEMS Note”) that matured and was paid-off on March 2, 2015. As of March 31,June 30, 2017, the Company has issued 3,162,457.9733,207,004.012 shares of its common stock, including through the DRIP, to GEMS in exchange for aggregate capital contributions totaling $47,437.$48,105.

On February 3, 2015, the Company entered into an unsecured revolving credit facility with the Investment Adviser (the “Revolver”), with a maximum credit limit of $40,000 and expiration date of February 3, 2018. Refer to Note 8 for discussion of the Revolver.

On June 1, 2015, GEMS Fund 4, L.P, a Delaware limited partnership whose general partner is controlled by the Investment Adviser, entered into a subscription agreement, which was subsequently increased to $33,677, to purchase shares of the Company’s common stock in a private placement. As of March 31,June 30, 2017, the Company has issued 1,080,638.5331,215,345.599 shares of its common stock to GEMS Fund 4, L.P in exchange for aggregate capital contributions totaling $16,210.$18,230.

During the three and sixnine months ended March 31,June 30, 2017, GCIC SLF incurred an administrative service fee of $51$57 and $106,$163, respectively, to reimburse the Administrator for expenses pursuant to an administrative and loan services agreement by and between GCIC SLF and the Administrator. During the three and sixnine months ended March 31,June 30, 2016, GCIC SLF incurred an administrative service fee of $57$38 and $74,$112, respectively, to reimburse the Administrator for expenses pursuant to an administrative and loan services agreement by and between GCIC SLF and the Administrator.



43

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

Note 5.    Investments

Investments as of March 31,June 30, 2017 and September 30, 2016 consisted of the following:
As of March 31, 2017 As of September 30, 2016As of June 30, 2017 As of September 30, 2016
Principal 
Amortized
Cost
 
Fair
Value
 Principal 
Amortized
Cost
 
Fair
Value
Principal 
Amortized
Cost
 
Fair
Value
 Principal 
Amortized
Cost
 
Fair
Value
Senior secured$148,619
 $146,676
 $147,329
 $113,576
 $112,122
 $112,994
$156,762
 $154,820
 $155,290
 $113,576
 $112,122
 $112,994
One stop954,689
 941,406
 950,483
 902,078
 888,892
 894,649
1,088,224
 1,072,394
 1,081,351
 902,078
 888,892
 894,649
Subordinated debt53
 53
 53
 40
 40
 40
54
 54
 54
 40
 40
 40
Subordinated notes in GCIC SLF(1)(2)

 
 
 34,917
 34,917
 34,917

 
 
 34,917
 34,917
 34,917
LLC equity interests in GCIC SLF(2)
N/A
 51,340
 52,423
  N/A
 12,258
 13,039
N/A
 47,175
 48,118
  N/A
 12,258
 13,039
EquityN/A
 14,321
 17,037
  N/A
 13,147
 14,071
N/A
 16,117
 19,147
  N/A
 13,147
 14,071
Total$1,103,361
 $1,153,796
 $1,167,325
 $1,050,611
 $1,061,376
 $1,069,710
$1,245,040
 $1,290,560
 $1,303,960
 $1,050,611
 $1,061,376
 $1,069,710
 
(1) 
On December 30, 2016, GCIC SLF issued a capital call in an aggregate amount of $39,905 the proceeds of which were used to redeem in full the outstanding balance on the subordinated notes previously issued by GCIC SLF and terminate all remaining subordinated note commitments.
(2) 
GCIC SLF’s proceeds from the subordinated notes and LLC equity interests invested in GCIC SLF were utilized by GCIC SLF to invest in senior secured loans.


43

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

The following tables show the portfolio composition by geographic region at amortized cost and fair value as a percentage of total investments in portfolio companies. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business.
As of March 31, 2017 As of September 30, 2016As of June 30, 2017 As of September 30, 2016
Amortized Cost:  
   
   
   
  
   
   
   
United States  
   
   
   
  
   
   
   
Mid-Atlantic$277,442
 24.1% $248,384
 23.4%$246,589
 19.1% $248,384
 23.4%
Midwest284,344
 24.6
 275,157
 25.9
329,455
 25.5
 275,157
 25.9
West105,656
 9.2
 104,238
 9.8
165,770
 12.8
 104,238
 9.8
Southeast256,370
 22.2
 234,214
 22.1
274,417
 21.3
 234,214
 22.1
Southwest97,298
 8.4
 73,563
 6.9
116,052
 9.0
 73,563
 6.9
Northeast100,489
 8.7
 93,550
 8.8
126,059
 9.8
 93,550
 8.8
Canada32,197
 2.8
 32,270
 3.1
32,218
 2.5
 32,270
 3.1
Total$1,153,796
 100.0% $1,061,376
 100.0%$1,290,560
 100.0% $1,061,376
 100.0%
              
Fair Value:  
   
   
   
  
   
   
   
United States  
   
   
   
  
   
   
   
Mid-Atlantic$281,544
 24.1% $250,798
 23.4%$250,220
 19.2% $250,798
 23.4%
Midwest286,198
 24.5
 276,075
 25.8
331,165
 25.4
 276,075
 25.8
West106,687
 9.2
 104,527
 9.8
167,465
 12.8
 104,527
 9.8
Southeast259,522
 22.2
 237,168
 22.2
277,610
 21.3
 237,168
 22.2
Southwest97,816
 8.4
 73,691
 6.9
116,235
 8.9
 73,691
 6.9
Northeast102,815
 8.8
 94,897
 8.9
128,492
 9.9
 94,897
 8.9
Canada32,743
 2.8
 32,554
 3.0
32,773
 2.5
 32,554
 3.0
Total$1,167,325
 100.0% $1,069,710
 100.0%$1,303,960
 100.0% $1,069,710
 100.0%



44

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

The industry compositions of the portfolio at amortized cost and fair value as of March 31,June 30, 2017 and September 30, 2016 were as follows:
As of March 31, 2017 As of September 30, 2016 As of June 30, 2017 As of September 30, 2016 
Amortized Cost:  
      
      
      
    
Aerospace and Defense$13,054
 1.1%$12,966
 1.2%$22,537
 1.7%$12,966
 1.2%
Automobile48,082
 4.2 51,568
 4.9 54,964
 4.3 51,568
 4.9 
Beverage, Food and Tobacco53,162
 4.7 36,875
 3.5 53,064
 4.2 36,875
 3.5 
Broadcasting and Entertainment1,578
 0.1 1,602
 0.2 690
 0.1 1,602
 0.2 
Buildings and Real Estate10,036
 0.9 8,452
 0.8 28,738
 2.2 8,452
 0.8 
Cargo Transport
  1,752
 0.2 
  1,752
 0.2 
Chemicals, Plastics and Rubber1,077
 0.1 33
 0.0*1,075
 0.1 33
 0.0*
Containers, Packaging and Glass
  1,123
 0.1 
  1,123
 0.1 
Diversified/Conglomerate Manufacturing31,831
 2.8 33,648
 3.2 39,319
 3.0 33,648
 3.2 
Diversified/Conglomerate Service234,775
 20.3 211,560
 19.9 259,824
 20.1 211,560
 19.9 
Ecological15,329
 1.3 15,371
 1.4 18,297
 1.4 15,371
 1.4 
Electronics118,711
 10.3 121,754
 11.5 128,093
 9.9 121,754
 11.5 
Grocery294
 0.0*302
 0.0*1,206
 0.1 302
 0.0*
Healthcare, Education and Childcare233,349
 20.2 195,880
 18.5 265,189
 20.5 195,880
 18.5 
Home and Office Furnishings, Housewares, and Durable Consumer10,819
 0.9 8,589
 0.8 10,801
 0.8 8,589
 0.8 
Hotels, Motels, Inns, and Gaming385
 0.0*388
 0.0*11,154
 0.9 388
 0.0*
Insurance20,391
 1.8 20,203
 1.9 27,943
 2.2 20,203
 1.9 
Investment Funds and Vehicles51,340
 4.4 47,175
 4.4 47,175
 3.7 47,175
 4.4 
Leisure, Amusement, Motion Pictures, Entertainment27,524
 2.4 17,344
 1.6 51,887
 4.0 17,344
 1.6 
Mining, Steel, Iron and Non-Precious Metals199
 0.0*199
 0.0*210
 0.0*199
 0.0*
Oil and Gas4,791
 0.4 4,855
 0.5 4,677
 0.4 4,855
 0.5 
Personal and Non Durable Consumer Products (Mfg. Only)13,555
 1.2 11,076
 1.0 29,842
 2.3 11,076
 1.0 
Personal, Food and Miscellaneous Services84,505
 7.3 77,862
 7.3 91,847
 7.1 77,862
 7.3 
Printing and Publishing54,626
 4.7 49,512
 4.7 20,870
 1.6 49,512
 4.7 
Retail Stores105,715
 9.2 119,983
 11.3 105,260
 8.2 119,983
 11.3 
Telecommunications12,137
 1.1 4,915
 0.5 7,202
 0.6 4,915
 0.5 
Textiles and Leather1,888
 0.2 1,729
 0.2 1,902
 0.1 1,729
 0.2 
Utilities4,643
 0.4 4,660
 0.4 6,794
 0.5 4,660
 0.4 
Total$1,153,796
 100.0%$1,061,376
 100.0%$1,290,560
 100.0%$1,061,376
 100.0%

* Represents an amount less than 0.1%


45

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

As of March 31, 2017 As of September 30, 2016 As of June 30, 2017 As of September 30, 2016 
Fair Value:  
   
   
   
   
      
   
 
Aerospace and Defense$12,980
 1.1
%$12,668
 1.2
%$22,753
 1.7%$12,668
 1.2
%
Automobile48,609
 4.2
 52,255
 4.9
 55,604
 4.3 52,255
 4.9
 
Beverage, Food and Tobacco52,996
 4.5
 36,554
 3.4
 53,306
 4.1 36,554
 3.4
 
Broadcasting and Entertainment1,617
 0.1
 1,643
 0.2
 696
 0.1 1,643
 0.2
 
Buildings and Real Estate10,014
 0.9
 8,430
 0.8
 29,010
 2.2 8,430
 0.8
 
Cargo Transport
 
 1,767
 0.2
 
  1,767
 0.2
 
Chemicals, Plastics and Rubber1,099
 0.1
 34
 0.0
*1,101
 0.1 34
 0.0
*
Containers, Packaging and Glass
 
 1,124
 0.1
 
  1,124
 0.1
 
Diversified/Conglomerate Manufacturing31,576
 2.7
 32,805
 3.1
 38,714
 3.0 32,805
 3.1
 
Diversified/Conglomerate Service238,429
 20.4
 213,978
 20.0
 263,255
 20.2 213,978
 20.0
 
Ecological15,607
 1.3
 15,490
 1.4
 18,467
 1.4 15,490
 1.4
 
Electronics120,978
 10.4
 122,838
 11.5
 129,888
 10.0 122,838
 11.5
 
Grocery302
 0.0
*310
 0.0
*1,208
 0.1 310
 0.0
*
Healthcare, Education and Childcare235,076
 20.1
 197,506
 18.5
 267,389
 20.5 197,506
 18.5
 
Home and Office Furnishings, Housewares, and Durable Consumer10,339
 0.9
 7,963
 0.7
 10,546
 0.8 7,963
 0.7
 
Hotels, Motels, Inns, and Gaming390
 0.0
*394
 0.0
*11,156
 0.9 394
 0.0
*
Insurance20,841
 1.8
 20,564
 1.9
 28,329
 2.2 20,564
 1.9
 
Investment Funds and Vehicles52,423
 4.5
 47,956
 4.5
 48,118
 3.7 47,956
 4.5
 
Leisure, Amusement, Motion Pictures and Entertainment27,149
 2.3
 17,279
 1.6
 51,543
 3.9 17,279
 1.6
 
Mining, Steel, Iron and Non-Precious Metals175
 0.0
*170
 0.0
*162
 0.0*170
 0.0
*
Oil and Gas4,849
 0.4
 4,873
 0.5
 4,729
 0.4 4,873
 0.5
 
Personal and Non-Durable Consumer Products (Mfg. Only)13,544
 1.2
 10,896
 1.0
 30,094
 2.3 10,896
 1.0
 
Personal, Food and Miscellaneous Services86,117
 7.4
 79,117
 7.4
 93,053
 7.1 79,117
 7.4
 
Printing and Publishing55,507
 4.8
 50,133
 4.7
 21,387
 1.6 50,133
 4.7
 
Retail Stores107,664
 9.2
 121,386
 11.3
 107,256
 8.2 121,386
 11.3
 
Telecommunications12,270
 1.1
 4,959
 0.5
 7,297
 0.6 4,959
 0.5
 
Textiles and Leather1,925
 0.2
 1,768
 0.2
 1,936
 0.1 1,768
 0.2
 
Utilities4,849
 0.4
 4,850
 0.4
 6,963
 0.5 4,850
 0.4
 
Total$1,167,325
 100.0%%$1,069,710
 100.0
%$1,303,960
 100.0%$1,069,710
 100.0
%
* Represents an amount less than 0.1%.
GCIC Senior Loan Fund LLC:

The Company co-invests with Aurora National Life Assurance Company, a wholly-owned subsidiary of RGA Reinsurance Company (“Aurora”), in senior secured loans through GCIC SLF, an unconsolidated Delaware LLC. GCIC SLF is capitalized as transactions are completed and all portfolio and investment decisions in respect of GCIC SLF must be approved by the GCIC SLF investment committee consisting of two representatives of each of the Company and Aurora (with unanimous approval required from (i) one representative of each of the Company and Aurora or (ii) both representatives of each of the Company and Aurora). GCIC SLF may cease making new investments upon notification of either member but operations will continue until all investments have been sold or paid-off in the normal course of business. Investments held by GCIC SLF are measured at fair value by GCIC SLF using the same valuation methodologies as described in Note 7.

As of March 31,June 30, 2017, GCIC SLF iswas capitalized from LLC equity interest subscriptions from its members. On December 14, 2016, the GCIC SLF investment committee approved the recapitalization of the commitments of GCIC SLF's members. On December 30, 2016, GCIC SLF’s members entered into additional LLC equity interest subscriptions totaling $100,000, GCIC SLF issued capital calls to the Company and Aurora totaling $39,905 and the subordinated notes previously issued by GCIC SLF were redeemed and terminated. As of March 31,June 30, 2017 and September 30, 2016, the Company and Aurora owned 87.5% and 12.5%, respectively, of the LLC equity interests of GCIC SLF. GCIC SLF’s profits and losses are allocated to the Company and Aurora in accordance with their respective ownership interests. As of September 30, 2016, the Company and Aurora owned 87.5% and 12.5%, respectively, of the outstanding subordinated notes issued by GCIC SLF.


46

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

Additionally, GCIC SLF has entered into a senior secured revolving credit facility (as amended, the “GCIC SLF Credit Facility”) with Wells Fargo Bank, N.A. through its wholly-owned subsidiary GCIC Senior Loan Fund II LLC (“GCIC SLF II”), which as of March 31,June 30, 2017 allowed GCIC SLF II to borrow up to $150,000 at any one time outstanding, subject to leverage and borrowing base restrictions.

As of March 31,June 30, 2017 and September 30, 2016, GCIC SLF had the following commitments from its members:
As of March 31, 2017 As of September 30, 2016As of June 30, 2017 As of September 30, 2016
Committed 
Funded(1)
 Committed FundedCommitted 
Funded(1)
 Committed Funded
Subordinated note commitments (2)(3)
$
 $
 $100,000
 $39,905
$
 $
 $100,000
 $39,905
LLC equity commitments (3)
125,000
 58,674
 25,000
 14,009
125,000
 53,914
 25,000
 14,009
Total$125,000
 $58,674
 $125,000
 $53,914
$125,000
 $53,914
 $125,000
 $53,914
 
(1) 
Funded LLC equity commitments are presented net of return of capital distributions subject to recall.
(2) 
The subordinated note commitments were terminated as of December 30, 2016.
(3) 
Commitments presented are combined for the Company and Aurora.
As of March 31,June 30, 2017 and September 30, 2016, GCIC SLF had total assets at fair value of $161,240$146,083 and $149,467, respectively. As of March 31,June 30, 2017 and September 30, 2016, GCIC SLF did not have any investments on non-accrual status. The portfolio companies in GCIC SLF are in industries similar to those in which the Company may invest directly. Additionally, as of March 31,June 30, 2017 and September 30, 2016, GCIC SLF had commitments to fund various undrawn revolvers and delayed draw investments to its portfolio companies totaling $7,208$6,225 and $10,725, respectively.

Below is a summary of GCIC SLF’s portfolio, followed by a listing of the individual investments in GCIC SLF’s portfolio as of March 31,June 30, 2017 and September 30, 2016:
As of As ofAs of As of
March 31, 2017 September 30, 2016June 30, 2017 September 30, 2016
Senior secured loans (1)
$158,273
 $146,481
$143,363
 $146,481
Weighted average current interest rate on senior secured loans (2)
6.2% 6.0%6.4% 6.0%
Number of borrowers in GCIC SLF43
 41
37
 41
Largest portfolio company investments (1)
$8,973
 $8,346
$8,950
 $8,346
Total of five largest portfolio company investments (1)
$40,543
 $39,053
$40,099
 $39,053
 
(1) 
At principal amount.
(2) 
Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at principal amount.


47

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

GCIC SLF Investment Portfolio as of March 31, 2017
GCIC SLF Investment Portfolio as of June 30, 2017GCIC SLF Investment Portfolio as of June 30, 2017
Portfolio Company Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
 Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
1A Smart Start LLC Home and Office Furnishings, Housewares, and Durable Consumer Senior loan 02/2022 5.9 $1,358
 $1,357
 Home and Office Furnishings, Housewares, and Durable Consumer Senior loan 02/2022 6.0% $1,355
 $1,356
Accellos, Inc. (3)
 Diversified/Conglomerate Service Senior loan 07/2020 6.9  6,252
 6,252
 Diversified/Conglomerate Service Senior loan 07/2020 7.0 6,698
 6,698
Aimbridge Hospitality, LLC (3)
 Hotels, Motels, Inns, and Gaming Senior loan 10/2018 5.8  2,406
 2,406
American Seafoods Group LLC Beverage, Food and Tobacco Senior loan 08/2021 6.0  2,971
 2,971
 Beverage, Food and Tobacco Senior loan 08/2021 6.3 2,971
 2,971
Argon Medical Devices, Inc. Healthcare, Education and Childcare Senior loan 12/2021 5.9 3,133
 3,133
 Healthcare, Education and Childcare Senior loan 12/2021 6.0 2,949
 2,949
Boot Barn, Inc. Retail Stores Senior loan 06/2021 5.6  5,568
 5,568
 Retail Stores Senior loan 06/2021 5.8 5,285
 5,285
Brandmuscle, Inc. Printing and Publishing Senior loan 12/2021 5.9  4,233
 4,227
 Printing and Publishing Senior loan 12/2021 6.0 4,172
 4,168
Certara L.P. (3)
 Healthcare, Education and Childcare Senior loan 12/2018 6.6 3,698
 3,671
 Healthcare, Education and Childcare Senior loan 12/2018 6.8 3,689
 3,689
Certara L.P. (4)
 Healthcare, Education and Childcare Senior loan 12/2018 N/A
(5) 
 
 (2)
Checkers Drive-In Restaurants, Inc. Beverage, Food and Tobacco Senior loan 01/2022 6.6 3,725
 3,697
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan 12/2020 6.1  2,060
 2,060
 Healthcare, Education and Childcare Senior loan 12/2020 6.3 2,054
 2,013
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan 12/2020 6.1 1,038
 1,038
 Healthcare, Education and Childcare Senior loan 12/2020 6.3 1,035
 1,014
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.8 2,100
 2,100
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5  2,106
 2,106
 Personal, Food and Miscellaneous Services Senior loan 10/2021 6.8 1,056
 1,056
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5  1,059
 1,059
 Personal, Food and Miscellaneous Services Senior loan 10/2021 6.8 59
 59
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5  59
 59
 Personal, Food and Miscellaneous Services Senior loan 10/2021 6.8 36
 36
Curo Health Services LLC (3)
 Healthcare, Education and Childcare Senior loan 02/2022 5.8  4,900
 4,939
 Healthcare, Education and Childcare Senior loan 02/2022 5.9 4,888
 4,952
Encore GC Acquisition, LLC Healthcare, Education and Childcare Senior loan 01/2020 6.6  2,119
 2,119
 Healthcare, Education and Childcare Senior loan 01/2020 6.8 2,113
 2,113
Encore GC Acquisition, LLC Healthcare, Education and Childcare Senior loan 01/2020 8.3  92
 92
 Healthcare, Education and Childcare Senior loan 01/2020 8.5 72
 72
Express Oil Change, LLC Retail Stores Senior loan 12/2017 6.1  331
 331
Express Oil Change, LLC Retail Stores Senior loan 12/2017 7.8  16
 16
Flexan, LLC Chemicals, Plastics and Rubber Senior loan 02/2020 6.9 2,704
 2,704
 Chemicals, Plastics and Rubber Senior loan 02/2020 7.0 2,697
 2,697
Flexan, LLC Chemicals, Plastics and Rubber Senior loan 02/2020 6.9  753
 753
 Chemicals, Plastics and Rubber Senior loan 02/2020 7.0 753
 753
Gamma Technologies, LLC (3)
 Electronics Senior loan 06/2021 6.0  4,434
 4,434
 Electronics Senior loan 06/2021 6.2 4,423
 4,423
Harvey Tool Company, LLC Diversified/Conglomerate Manufacturing Senior loan 03/2020 6.1  1,995
 1,995
 Diversified/Conglomerate Manufacturing Senior loan 03/2020 6.1 1,981
 1,981
III US Holdings, LLC Diversified/Conglomerate Service Senior loan 09/2022 7.2  5,166
 5,166
 Diversified/Conglomerate Service Senior loan 09/2022 7.4 5,152
 5,152
Jensen Hughes, Inc. Buildings and Real Estate Senior loan 12/2021 6.4 2,009
 2,009
 Buildings and Real Estate Senior loan 12/2021 6.4 2,009
 2,009
Jensen Hughes, Inc. Buildings and Real Estate Senior loan 12/2021 6.0 89
 89
 Buildings and Real Estate Senior loan 12/2021 6.2 89
 89
Jensen Hughes, Inc. Buildings and Real Estate Senior loan 12/2021 6.0 56
 56
 Buildings and Real Estate Senior loan 12/2021 6.2 56
 56
Loar Group Inc. Aerospace and Defense Senior loan 01/2022 5.8 1,990
 1,990
 Aerospace and Defense Senior loan 01/2022 6.0 1,939
 1,939
Pasternack Enterprises, Inc. and Fairview Microwave, Inc. Diversified/Conglomerate Manufacturing Senior loan 05/2022 6.0 3,807
 3,807
PetVet Care Centers LLC Personal, Food and Miscellaneous Services Senior loan 12/2020 5.9 2,896
 2,896
PetVet Care Centers LLC Personal, Food and Miscellaneous Services Senior loan 12/2020 5.9 602
 602
PetVet Care Centers LLC Personal, Food and Miscellaneous Services Senior loan 12/2019 7.4 91
 91
Pasternack Enterprises, Inc. and Fairview Microwave, Inc Diversified/Conglomerate Manufacturing Senior loan 05/2022 6.2 5,026
 5,026
Polk Acquisition Corp. (3)
 Automobile Senior loan 06/2022 6.0 8,570
 8,570
 Automobile Senior loan 06/2022 6.2 8,548
 8,548
Polk Acquisition Corp. Automobile Senior loan 06/2022 6.0  54
 54
 Automobile Senior loan 06/2022 6.2 54
 54
Polk Acquisition Corp. Automobile Senior loan 06/2022 6.6  35
 35
 Automobile Senior loan 06/2022 6.6 43
 43
PowerPlan Holdings, Inc. (3)
 Utilities Senior loan 02/2022 5.8  7,494
 7,494
 Utilities Senior loan 02/2022 6.0 7,126
 7,126
Premise Health Holding Corp. (3)
 Healthcare, Education and Childcare Senior loan 06/2020 5.6  5,955
 5,955
 Healthcare, Education and Childcare Senior loan 06/2020 5.8 5,940
 5,940
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan 08/2019 7.5 2,358
 2,358
 Healthcare, Education and Childcare Senior loan 08/2019 7.7 2,352
 2,352
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan 08/2019 7.5  79
 79
 Healthcare, Education and Childcare Senior loan 08/2019 7.7 79
 79
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 6.9  7,131
 7,131
 Healthcare, Education and Childcare Senior loan 09/2020 7.0 7,113
 7,113
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 6.9  545
 545
 Healthcare, Education and Childcare Senior loan 09/2020 7.0 543
 543
Radiology Partners, Inc. Healthcare, Education and Childcare Senior loan 09/2020 6.9  462
 462
 Healthcare, Education and Childcare Senior loan 09/2020 7.0 461
 461
RSC Acquisition, Inc. (3)
 Insurance Senior loan 11/2022 6.4  3,340
 3,340
 Insurance Senior loan 11/2022 6.5 3,331
 3,315
RSC Acquisition, Inc. Insurance Senior loan 11/2020 5.8  15
 15
 Insurance Senior loan 11/2020 6.0 15
 15
Rubio's Restaurants, Inc. Beverage, Food and Tobacco Senior loan 11/2018 6.0 1,680
 1,680
Rug Doctor LLC Personal and Non Durable Consumer Products (Mfg. Only) Senior loan 06/2018 6.5 1,535
 1,535
Saldon Holdings, Inc. Diversified/Conglomerate Service Senior loan 09/2021 5.7 2,060
 2,060
Sarnova HC, LLC Healthcare, Education and Childcare Senior loan 01/2022 6.0 3,309
 3,309
SEI, Inc. (3)
 Electronics Senior loan 07/2021 6.0 5,230
 5,178
Self Esteem Brands, LLC (3)
 Leisure, Amusement, Motion Pictures, Entertainment Senior loan 02/2020 6.0 6,558
 6,558
Severin Acquisition, LLC (3)
 Diversified/Conglomerate Service Senior loan 07/2021 6.2 7,868
 7,864


48

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

GCIC SLF Investment Portfolio as of March 31, 2017 - (continued)
Portfolio Company Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
Rubio's Restaurants, Inc Beverage, Food and Tobacco Senior loan 11/2018 5.9
 $1,685
 $1,685
Rug Doctor LLC Personal and Non Durable Consumer Products (Mfg. Only) Senior loan 06/2018 6.3
  
 1,698
 1,698
Saldon Holdings, Inc. Diversified/Conglomerate Service Senior loan 09/2021 5.5
  2,103
 2,103
Sarnova HC, LLC Healthcare, Education and Childcare Senior loan 01/2022 5.8
  3,317
 3,317
SEI, Inc. (3)
 Electronics Senior loan 07/2021 5.8
  
 5,244
 5,243
Self Esteem Brands, LLC (3)
 Leisure, Amusement, Motion Pictures, Entertainment Senior loan 02/2020 5.8
  
 6,729
 6,662
Self Esteem Brands, LLC (4)
 Leisure, Amusement, Motion Pictures, Entertainment Senior loan 02/2020  N/A
(5) 
 
 (8)
Severin Acquisition, LLC (3)
 Diversified/Conglomerate Service Senior loan 07/2021 6.0
  
 7,888
 7,809
Severin Acquisition, LLC Diversified/Conglomerate Service Senior loan 07/2021 6.1
  
 1,085
 1,078
Severin Acquisition, LLC (3)(4)
 Diversified/Conglomerate Service Senior loan 07/2021  N/A
(5) 
 
 (1)
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 5,537
 5,426
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 437
 429
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  436
 427
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.6
  435
 426
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 434
 425
Smashburger Finance LLC (4)
 Beverage, Food and Tobacco Senior loan 05/2018  N/A
(5) 
 
 (14)
Southern Anesthesia and Surgical Healthcare, Education and Childcare Senior loan 11/2017 6.6
  
 187
 187
Southern Anesthesia and Surgical Healthcare, Education and Childcare Senior loan 11/2017 6.6
  
 117
 117
Tate's Bake Shop, Inc. Beverage, Food and Tobacco Senior loan 08/2019 6.1
  708
 708
Teasdale Quality Foods, Inc. Grocery Senior loan 10/2020 5.4
  
 1,104
 1,100
Transaction Data Systems, Inc. Diversified/Conglomerate Service Senior loan 06/2021 6.4
  
 3,912
 3,912
Young Innovations, Inc. Healthcare, Education and Childcare Senior loan 01/2019 6.1
  
 755
 755
Zest Holdings, LLC Healthcare, Education and Childcare Senior loan 08/2020 5.9
  
 4,708
 4,708
            $158,273
 $157,921
GCIC SLF Investment Portfolio as of June 30, 2017 - (continued)
Portfolio Company Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
Severin Acquisition, LLC Diversified/Conglomerate Service Senior loan 07/2021 6.3% $1,082 $1,086
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8  5,523 5,247
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8  436 414
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8  435 413
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8  434 412
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8  433 411
Smashburger Finance LLC (4)
 Beverage, Food and Tobacco Senior loan 05/2018 N/A
(5) 
  (35)
Tate's Bake Shop, Inc. (3)
 Beverage, Food and Tobacco Senior loan 08/2019 6.3  707 707
Teasdale Quality Foods, Inc. Grocery Senior loan 10/2020 5.5  1,103 1,098
Transaction Data Systems, Inc. Diversified/Conglomerate Service Senior loan 06/2021 6.6  3,902 3,902
Transaction Data Systems, Inc. Diversified/Conglomerate Service Senior loan 06/2020 5.7  22 21
Young Innovations, Inc. (3)
 Healthcare, Education and Childcare Senior loan 01/2019 6.3  753 753
Young Innovations, Inc. Healthcare, Education and Childcare Senior loan 01/2019 6.3  31 31
            $143,363 $142,889
 
(1) 
Represents the weighted average annual current interest rate as of March 31,June 30, 2017. All interest rates are payable in cash.
(2) 
Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board's valuation process described elsewhere herein.
(3) 
The Company also holds a portion of the first lien senior secured loan in this portfolio company.
(4) 
The negative fair value is the result of the unfunded commitment being valued below par.
(5) 
The entire commitment was unfunded at March 31,as of June 30, 2017. As such, no interest is being earned on this investment. The investment may be subject to an unused facility fee.


49

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

GCIC SLF Investment Portfolio as of September 30, 2016
Portfolio Company Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
 Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
1A Smart Start LLC Home and Office Furnishings, Housewares, and Durable Consumer Senior loan 02/2022 5.8
 $1,365
 $1,361
 Home and Office Furnishings, Housewares, and Durable Consumer Senior loan 02/2022 5.8
 $1,365
 $1,361
Aimbridge Hospitality, LLC Hotels, Motels, Inns, and Gaming Senior loan 10/2018 5.8
  
 2,431
 2,431
 Hotels, Motels, Inns, and Gaming Senior loan 10/2018 5.8
  
 2,431
 2,431
American Seafoods Group LLC Beverage, Food and Tobacco Senior loan 08/2021 6.0
  
 3,108
 3,100
 Beverage, Food and Tobacco Senior loan 08/2021 6.0
  
 3,108
 3,100
Argon Medical Devices, Inc. Healthcare, Education and Childcare Senior loan 12/2021 5.8
  
 3,444
 3,444
 Healthcare, Education and Childcare Senior loan 12/2021 5.8
  
 3,444
 3,444
Boot Barn, Inc. Retail Stores Senior loan 06/2021 5.5
 5,596
 5,596
 Retail Stores Senior loan 06/2021 5.5
 5,596
 5,596
Brandmuscle, Inc. Printing and Publishing Senior loan 12/2021 5.8
  
 4,255
 4,246
 Printing and Publishing Senior loan 12/2021 5.8
  
 4,255
 4,246
C.B. Fleet Company, Incorporated Personal and Non Durable Consumer Products Senior loan 12/2021 5.8
  
 8,346
 8,346
 Personal and Non Durable Consumer Products Senior loan 12/2021 5.8
  
 8,346
 8,346
Checkers Drive-In Restaurants, Inc. Beverage, Food and Tobacco Senior loan 01/2022 6.5
 3,945
 3,915
 Beverage, Food and Tobacco Senior loan 01/2022 6.5
 3,945
 3,915
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan 12/2020 6.3
  
 1,043
 1,043
 Healthcare, Education and Childcare Senior loan 12/2020 6.3
  
 1,043
 1,043
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan 12/2020 6.3
 2,070
 2,070
 Healthcare, Education and Childcare Senior loan 12/2020 6.3
 2,070
 2,070
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5
  
 1,064
 1,059
 Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5
  
 1,064
 1,059
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5
 2,117
 2,106
 Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5
 2,117
 2,106
Curo Health Services LLC Healthcare, Education and Childcare Senior loan 02/2022 6.5
  
 4,925
 4,940
 Healthcare, Education and Childcare Senior loan 02/2022 6.5
  
 4,925
 4,940
Encore GC Acquisition, LLC Healthcare, Education and Childcare Senior loan 01/2020 7.8
  
 73
 73
 Healthcare, Education and Childcare Senior loan 01/2020 7.8
  
 73
 73
Encore GC Acquisition, LLC Healthcare, Education and Childcare Senior loan 01/2020 6.3
  
 2,130
 2,130
 Healthcare, Education and Childcare Senior loan 01/2020 6.3
  
 2,130
 2,130
Express Oil Change, LLC Retail Stores Senior loan 12/2017 6.0
  
 340
 340
 Retail Stores Senior loan 12/2017 6.0
  
 340
 340
Flexan, LLC Chemicals, Plastics and Rubber Senior loan 02/2020 6.3
  
 2,718
 2,718
 Chemicals, Plastics and Rubber Senior loan 02/2020 6.3
  
 2,718
 2,718
Harvey Tool Company, LLC Diversified/Conglomerate Manufacturing Senior loan 03/2020 6.0
  
 2,005
 2,005
 Diversified/Conglomerate Manufacturing Senior loan 03/2020 6.0
  
 2,005
 2,005
Jensen Hughes, Inc. Diversified/Conglomerate Service Senior loan 12/2021 6.2
  
 56
 56
 Diversified/Conglomerate Service Senior loan 12/2021 6.2
  
 56
 56
Jensen Hughes, Inc. Diversified/Conglomerate Service Senior loan 12/2021 6.0
  
 89
 89
 Diversified/Conglomerate Service Senior loan 12/2021 6.0
  
 89
 89
Jensen Hughes, Inc. Diversified/Conglomerate Service Senior loan 12/2021 6.3
 2,014
 2,014
 Diversified/Conglomerate Service Senior loan 12/2021 6.3
 2,014
 2,014
Loar Group Inc. Aerospace and Defense Senior loan 01/2022 5.8
  
 2,000
 2,000
 Aerospace and Defense Senior loan 01/2022 5.8
  
 2,000
 2,000
Mediaocean LLC Diversified/Conglomerate Service Senior loan 08/2022 5.8
  
 2,025
 2,025
 Diversified/Conglomerate Service Senior loan 08/2022 5.8
  
 2,025
 2,025
Pasternack Enterprises, Inc. and Fairview Microwave, Inc (3)
 Diversified/Conglomerate Manufacturing Senior loan 05/2022 6.0
  
 1,530
 1,515
 Diversified/Conglomerate Manufacturing Senior loan 05/2022 6.0
  
 1,530
 1,515
Pentec Acquisition Sub, Inc. Healthcare, Education and Childcare Senior loan 05/2018 6.3
  
 438
 438
 Healthcare, Education and Childcare Senior loan 05/2018 6.3
  
 438
 438
PetVet Care Centers LLC Personal, Food and Miscellaneous Services Senior loan 12/2020 5.8
  
 605
 605
 Personal, Food and Miscellaneous Services Senior loan 12/2020 5.8
  
 605
 605
PetVet Care Centers LLC Personal, Food and Miscellaneous Services Senior loan 12/2020 5.8
  
 2,911
 2,911
 Personal, Food and Miscellaneous Services Senior loan 12/2020 5.8
  
 2,911
 2,911
PowerPlan Holdings, Inc. (3)
 Utilities Senior loan 02/2022 5.8
 7,521
 7,521
 Utilities Senior loan 02/2022 5.8
 7,521
 7,521
PPT Management, LLC Healthcare, Education and Childcare Senior loan 04/2020 6.0
  
 10
 10
 Healthcare, Education and Childcare Senior loan 04/2020 6.0
  
 10
 10
PPT Management, LLC (3) Healthcare, Education and Childcare Senior loan 04/2020 6.0
  
 6,293
 6,293
 Healthcare, Education and Childcare Senior loan 04/2020 6.0
  
 6,293
 6,293
Premise Health Holding Corp. (3)
 Healthcare, Education and Childcare Senior loan 06/2020 5.5
 5,985
 5,985
 Healthcare, Education and Childcare Senior loan 06/2020 5.5
 5,985
 5,985
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan 08/2019 7.8
  
 90
 90
 Healthcare, Education and Childcare Senior loan 08/2019 7.8
  
 90
 90
Pyramid Healthcare, Inc. (3)
 Healthcare, Education and Childcare Senior loan 08/2019 6.8
 2,012
 2,012
 Healthcare, Education and Childcare Senior loan 08/2019 6.8
 2,012
 2,012
Radiology Partners, Inc. Healthcare, Education and Childcare Senior loan 09/2020 6.5
  
 465
 460
 Healthcare, Education and Childcare Senior loan 09/2020 6.5
  
 465
 460
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 6.5
  
 728
 722
 Healthcare, Education and Childcare Senior loan 09/2020 6.5
  
 728
 722
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 6.5
  
 6,438
 6,373
 Healthcare, Education and Childcare Senior loan 09/2020 6.5
  
 6,438
 6,373
Radiology Partners, Inc. (4)
 Healthcare, Education and Childcare Senior loan 09/2020 N/A
(5) 
 
 (5) Healthcare, Education and Childcare Senior loan 09/2020 N/A
(5) 
 
 (5)
Radiology Partners, Inc. (4)
 Healthcare, Education and Childcare Senior loan 09/2020 N/A
(5) 
 
 (3) Healthcare, Education and Childcare Senior loan 09/2020 N/A
(5) 
 
 (3)
RSC Acquisition, Inc. Insurance Senior loan 11/2020 6.8
 33
 33
 Insurance Senior loan 11/2020 6.8
 33
 33
RSC Acquisition, Inc. (3)
 Insurance Senior loan 11/2022 6.3
  
 148
 148
 Insurance Senior loan 11/2022 6.3
  
 148
 148
RSC Acquisition, Inc. (3)
 Insurance Senior loan 11/2022 6.3
  
 3,209
 3,209
 Insurance Senior loan 11/2022 6.3
  
 3,209
 3,209
Rubio's Restaurants, Inc Beverage, Food and Tobacco Senior loan 11/2018 6.0
  
 1,693
 1,693
 Beverage, Food and Tobacco Senior loan 11/2018 6.0
  
 1,693
 1,693
Rug Doctor LLC Personal and Non Durable Consumer Products Senior loan 06/2018 6.3
  
 2,016
 2,016
 Personal and Non Durable Consumer Products Senior loan 06/2018 6.3
  
 2,016
 2,016
Saldon Holdings, Inc. Diversified/Conglomerate Service Senior loan 09/2021 5.5
  
 2,186
 2,186
 Diversified/Conglomerate Service Senior loan 09/2021 5.5
  
 2,186
 2,186
Sarnova HC, LLC Healthcare, Education and Childcare Senior loan 01/2022 5.8
  
 3,334
 3,334
 Healthcare, Education and Childcare Senior loan 01/2022 5.8
  
 3,334
 3,334
SEI, Inc. Electronics Senior loan 07/2021 5.8
  
 5,270
 5,270
 Electronics Senior loan 07/2021 5.8
  
 5,270
 5,270


50

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

GCIC SLF Investment Portfolio as of September 30, 2016 – (continued)
Portfolio Company Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
Self Esteem Brands, LLC Leisure, Amusement, Motion Pictures and Entertainment Senior loan 02/2020 5.0
 $5,106
 $5,106
Severin Acquisition, LLC (3)
 Diversified/Conglomerate Service Senior loan 07/2021 5.9
  7,928
 7,890
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  455
 445
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 456
 447
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 457
 448
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 458
 449
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 5,800
 5,685
Smashburger Finance LLC (4)
 Beverage, Food and Tobacco Senior loan 05/2018 N/A
(5) 
 
 (14)
Tate's Bake Shop, Inc. (3)
 Beverage, Food and Tobacco Senior loan 08/2019 6.0
  712
 712
Teasdale Quality Foods, Inc. Grocery Senior loan 10/2020 5.3
  
 1,104
 1,100
Transaction Data Systems, Inc. Diversified/Conglomerate Service Senior loan 06/2020 5.5
  
 9
 8
Transaction Data Systems, Inc. Diversified/Conglomerate Service Senior loan 06/2021 6.3
  2,763
 2,763
Worldwide Express Operations, LLC Cargo Transport Senior loan 07/2019 6.0
  100
 100
Worldwide Express Operations, LLC (3)
 Cargo Transport Senior loan 07/2019 6.0
  
 5,963
 5,963
Young Innovations, Inc. Healthcare, Education and Childcare Senior loan 01/2018 6.8
  
 10
 10
Young Innovations, Inc. Healthcare, Education and Childcare Senior loan 01/2019 5.3
  
 354
 356
Zest Holdings, LLC Healthcare, Education and Childcare Senior loan 08/2020 5.8
  
 4,732
 4,732
            $146,481
 $146,123
 
(1) 
Represents the weighted average annual current interest rate as of September 30, 2016. All interest rates are payable in cash.
(2) 
Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in the Board's valuation process described elsewhere herein.
(3) 
The Company also holds a portion of the first lien senior secured loan in this portfolio company.
(4) 
The negative fair value is the result of the unfunded commitment being valued below par.
(5) 
The entire commitment was unfunded at September 30, 2016. As such, no interest is being earned on this investment.
As of March 31,June 30, 2017, the Company has committed to fund $109,375 of LLC equity interest subscriptions to GCIC SLF. As of March 31,June 30, 2017 and September 30, 2016, $51,340$47,175 and $12,258, respectively, of the Company's LLC equity interest subscriptions to GCIC SLF had been called and contributed, net of return of capital distributions subject to recall. For the three and sixnine months ended March 31,June 30, 2017, the Company received $1,242$1,216 and $1,663,$2,879, respectively, in dividend income from the GCIC SLF LLC equity interests. For each of the three and sixnine months ended March 31,June 30, 2016, the Company received $0 in dividend income from the GCIC SLF LLC equity interests.

As of September 30, 2016, the amortized cost and fair value of the GCIC SLF subordinated notes held by the Company was $34,917 and $34,917, respectively. As of September 30, 2016, the subordinated notes paid a weighted average interest rate of three-month LIBOR plus 8.0%. For the three and sixnine months ended March 31,June 30, 2017, the Company earned interest income on the subordinated notes of $0 and $732, respectively. For the three and sixnine months ended March 31,June 30, 2016, the Company earned interest income on the subordinated notes of $730$733 and $1,215,$1,948, respectively.



51

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

See below for certain summarized financial information for GCIC SLF as of March 31,June 30, 2017 and September 30, 2016 and for the three and sixnine months ended March 31,June 30, 2017 and 2016:
As of As ofAs of As of
March 31, 2017 September 30, 2016June 30, 2017 September 30, 2016
Selected Balance Sheet Information:  
   
  
   
Investments, at fair value$157,921
 $146,123
$142,889
 $146,123
Cash and other assets3,319
 3,344
3,194
 3,344
Total assets$161,240
 $149,467
$146,083
 $149,467
Senior credit facility$102,000
 $95,500
$90,450
 $95,500
Unamortized debt issuance costs(984) (1,122)(916) (1,122)
Payable for investments purchased1,229
 
Other liabilities312
 282
328
 282
Total liabilities101,328
 94,660
91,091
 94,660
Subordinated notes and members’ equity59,912
 54,807
54,992
 54,807
Total liabilities and members' equity$161,240
 $149,467
$146,083
 $149,467
Three months ended March 31, Six months ended March 31,Three months ended June 30, Nine months ended June 30,
2017 2016 2017 20162017 2016 2017 2016
Selected Statement of Operations Information:  
   
      
   
    
Interest income$2,612
 $1,642
 $5,053
 $2,353
$2,478
 $2,140
 $7,531
 $4,493
Total investment income2,612
 1,642
 5,053
 2,353
2,478
 2,140
 7,531
 4,493
Interest expense903
 1,415
 2,616
 2,249
961
 1,620
 3,577
 3,869
Administrative service fee51
 57
 106
 74
57
 38
 163
 112
Other expenses24
 20
 48
 39
25
 26
 73
 65
Total expenses978
 1,492
 2,770
 2,362
1,043
 1,684
 3,813
 4,046
Net investment income (loss)1,634
 150
 2,283
 (9)1,435
 456
 3,718
 447
Net change in unrealized appreciation (depreciation) on investments and subordinated notes(99) 558
 (37) 669
(205) 171
 (242) 840
Net increase (decrease) in net assets$1,535
 $708
 $2,246
 $660
$1,230
 $627
 $3,476
 $1,287

Note 6.    Transactions with Affiliated Companies

An affiliated company is generally a portfolio company in which the Company owns 5% or more of the portfolio company’s voting securities. A controlled affiliate is generally a portfolio company in which the Company owns more than 25% of the portfolio company’s outstanding voting securities. Transactions related to investments with controlled affiliates for the sixnine months ended March 31,June 30, 2017 and 2016 were as follows:
For the six months ended March 31, 2017
For the nine months ended June 30, 2017For the nine months ended June 30, 2017
Portfolio
Company
 Fair value at September 30, 2016 
Purchases
(cost)
 
Redemptions
(cost)
 
Discount
accretion
 
Net change in unrealized
gain/(loss)
 Fair value at March 31, 2017 Net realized gain/(loss) 
Interest and
fee income
 
Dividend
income
 Fair value at September 30, 2016 
Purchases
(cost)
 
Redemptions
(cost)
 
Discount
accretion
 
Net change in unrealized
gain/(loss)
 Fair value at June 30, 2017 Net realized gain/(loss) 
Interest and
fee income
 
Dividend
income
Controlled Affiliates   
   
   
   
   
   
     
   
   
   
   
   
   
   
     
   
GCIC Senior Loan Fund LLC* $47,956
 $43,720
 $(39,555) $
 $302
 $52,423
 $
 $732
 $1,663
 $47,956
 $43,720
 $(43,720) $
 $162
 $48,118
 $
 $732
 $2,879
Total Controlled Affiliates $47,956
 $43,720
 $(39,555) $
 $302
 $52,423
 $
 $732
 $1,663
 $47,956
 $43,720
 $(43,720) $
 $162
 $48,118
 $
 $732
 $2,879
 
*Together with Aurora, the Company co-invests through GCIC SLF. GCIC SLF is capitalized as transactions are completed and all portfolio and investment decisions in respect to GCIC SLF must be approved by the GCIC SLF investment committee consisting of two representatives of the Company and Aurora (with unanimous approval required from (i) one representative of each of the Company and Aurora or (ii) both representatives of each of the Company and Aurora). Therefore, although the Company owns more than 25% of the voting securities of GCIC SLF, the Company does not believe that it has control over GCIC SLF for purposes of the 1940 Act or otherwise.


52

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

For the six months ended March 31, 2016
For the nine months ended June 30, 2016For the nine months ended June 30, 2016
Portfolio
Company
 Fair value at September 30, 2015 
Purchases
(cost)
 
Redemptions
(cost)
 
Discount
accretion
 
Net change in unrealized
gain/(loss)
 Fair value at March 31, 2016 Net realized gain/(loss) 
Interest and
fee income
 
Dividend
income
 Fair value at September 30, 2015 
Purchases
(cost)
 
Redemptions
(cost)
 
Discount
accretion
 
Net change in unrealized
gain/(loss)
 Fair value at June 30, 2016 Net realized gain/(loss) 
Interest and
fee income
 
Dividend
income
Controlled Affiliates   
   
   
   
   
   
     
   
   
   
   
   
   
   
     
   
GCIC Senior Loan Fund LLC* $
 $44,261
 $
 $
 $229
 $44,490
 $
 $1,215
 $
 $
 $47,175
 $
 $
 $777
 $47,952
 $
 $1,948
 $
Total Controlled Affiliates $
 $44,261
 $
 $
 $229
 $44,490
 $
 $1,215
 $
 $
 $47,175
 $
 $
 $777
 $47,952
 $
 $1,948
 $
 
*Together with Aurora, the Company co-invests through GCIC SLF. GCIC SLF is capitalized as transactions are completed and all portfolio and investment decisions in respect to GCIC SLF must be approved by the GCIC SLF investment committee consisting of two representatives of the Company and Aurora (with unanimous approval required from (i) one representative of each of the Company and Aurora or (ii) both representatives of each of the Company and Aurora). Therefore, although the Company owns more than 25% of the voting securities of GCIC SLF, the Company does not believe that it has control over GCIC SLF for purposes of the 1940 Act or otherwise.

Note 7.    Fair Value Measurements

The Company follows ASC Topic 820 for measuring fair value. Fair value is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the assets or liabilities or market and the assets’ or liabilities’ complexity. The Company’s fair value analysis includes an analysis of the value of any unfunded loan commitments. Assets and liabilities are categorized for disclosure purposes based upon the level of judgment associated with the inputs used to measure their value. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation of the asset or liability as of the measurement date. The three levels are defined as follows: 

Level 1:     Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2:     Inputs include quoted prices for similar assets or liabilities in active markets and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the assets or liabilities.

Level 3:     Inputs include significant unobservable inputs for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value are based upon the best information available and may require significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfers. There were no transfers among Level 1, 2 and 3 of the fair value hierarchy for assets and liabilities during the three and sixnine months ended March 31,June 30, 2017 and 2016. The following section describes the valuation techniques used by the Company to measure different assets and liabilities at fair value and includes the level within the fair value hierarchy in which the assets and liabilities are categorized.



53

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

Investments

Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of the Board to assist in the valuation of each portfolio investment without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process. This valuation process is conducted at the end of each fiscal quarter, with approximately 25% (based on the number of portfolio companies) of the Company’s valuations of debt and equity investments without readily available market quotations subject to review by an independent valuation firm. All investments as of March 31,June 30, 2017 and September 30, 2016, with the exception of money market funds included in cash and cash equivalents and restricted cash and cash equivalents (Level 1 investments) and investments measured at fair value using the NAV, were valued using Level 3 inputs of the fair value hierarchy.

When determining fair value of Level 3 debt and equity investments, the Company may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary method for determining enterprise value uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s net income before net interest expense, income tax expense, depreciation and amortization (“EBITDA”). A portfolio company’s EBITDA may include pro-forma adjustments for items such as acquisitions, divestures, or expense reductions. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired, the Company will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, the Company uses a market interest rate yield analysis to determine fair value.

In addition, for certain debt investments, the Company may base its valuation on indicative bid and ask prices provided by an independent third party pricing service. Bid prices reflect the highest price that the Company and others may be willing to pay. Ask prices represent the lowest price that the Company and others may be willing to accept. The Company generally uses the midpoint of the bid/ask range as its best estimate of fair value of such investment.

Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded.

The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.


54

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   


The following tables present fair value measurements of the Company’s investments and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of March 31,June 30, 2017 and September 30, 2016:
As of March 31, 2017 Fair Value Measurements Using
As of June 30, 2017 Fair Value Measurements Using
Description Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets:   
   
   
   
   
   
   
   
Debt investments(1)
 $
 $
 $1,097,865
 $1,097,865
 $
 $
 $1,236,695
 $1,236,695
Equity investments(1)
 
 
 17,037
 17,037
 
 
 19,147
 19,147
Money market funds(1)(2)
 6,748
 
 
 6,748
 309
 
 
 309
Investment measured at NAV(3)(4)
 
 
 
 52,423
 
 
 
 48,118
Total assets: $6,748
 $
 $1,114,902
 $1,174,073
 $309
 $
 $1,255,842
 $1,304,269
As of September 30, 2016 Fair Value Measurements Using
Description Level 1 Level 2 Level 3 Total
Assets:   
   
   
   
Debt investments(1)
 $
 $
 $1,042,600
 $1,042,600
Equity investments(1)
 
 
 14,071
 14,071
Investment measured at NAV(3)(4)
 
 
 
 13,039
Total assets: $
 $
 $1,056,671
 $1,069,710
 
(1) 
Refer to the Consolidated Schedules of Investments for further details.
(2) 
Included in cash and cash equivalents and restricted cash and cash equivalents on the Consolidated Statements of Financial Condition.
(3) 
Certain investments that are measured at fair value using the NAV have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated statements of financial condition.
(4) 
Represents the Company's investment in LLC equity interest in GCIC SLF. The fair value of this investment has been determined using the NAV of the Company’s ownership interest in members’ capital.
The net change in unrealized appreciation (depreciation) for the three and sixnine months ended March 31,June 30, 2017 reported within the net change in unrealized appreciation (depreciation) on investments in the Company’s consolidated statements of operations attributable to the Company’s Level 3 assets held as of March 31,June 30, 2017 was $1,806$1,314 and $5,637, respectively.The$6,201, respectively. The net change in unrealized appreciation (depreciation) for the three and sixnine months ended March 31,June 30, 2016 reported within the net change in unrealized appreciation (depreciation) on investments in the Company’s consolidated statements of operations attributable to the Company’s Level 3 assets held as of March 31,June 30, 2016 was $31$2,324 and $1,339,$3,177, respectively.



55

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

The following tables present the changes in investments measured at fair value using Level 3 inputs for the sixnine months ended March 31,June 30, 2017 and 2016:
For the six months ended March 31, 2017For the nine months ended June 30, 2017
Debt
Investments
 
Equity
Investments
 
Total
Investments
Debt
Investments
 
Equity
Investments
 
Total
Investments
Fair value, beginning of period$1,042,600
 $14,071
 $1,056,671
$1,042,600
 $14,071
 $1,056,671
Net change in unrealized appreciation (depreciation)
on investments
3,101
 1,792
 4,893
2,799
 2,106
 4,905
Realized gain (loss) on investments331
 
 331
293
 129
 422
Proceeds from (funding of) revolving loans, net829
 
 829
(282) 
 (282)
Fundings of investments174,921
 1,406
 176,327
419,643
 3,855
 423,498
PIK interest565
 
 565
1,016
 
 1,016
Proceeds from principal payments and sales of portfolio
investments
(91,944) (232) (92,176)(199,047) (1,014) (200,061)
Noncash proceeds from subordinated notes in GCIC SLF
principal payments
(34,917) 
 (34,917)(34,917) 
 (34,917)
Accretion of discounts and amortization of premiums2,379
 
 2,379
4,590
 
 4,590
Fair value, end of period$1,097,865
 $17,037
 $1,114,902
$1,236,695
 $19,147
 $1,255,842

For the six months ended March 31, 2016For the nine months ended June 30, 2016
Debt
Investments
 
Equity
Investments
 
Total
Investments
Debt
Investments
 
Equity
Investments
 
Total
Investments
Fair value, beginning of period$546,757
 $5,121
 $551,878
$546,757
 $5,121
 $551,878
Net change in unrealized appreciation (depreciation)
on investments
478
 (23) 455
2,138
 289
 2,427
Realized gain (loss) on investments733
 
 733
710
 
 710
Proceeds from (funding of) revolving loans, net2,165
 
 2,165
2,362
 
 2,362
Fundings of investments322,969
 1,868
 324,837
569,443
 6,783
 576,226
PIK interest48
 
 48
74
 
 74
Proceeds from principal payments and sales of portfolio
investments
(189,036) (40) (189,076)(236,082) (196) (236,278)
Accretion of discounts and amortization of premiums1,403
 
 1,403
2,055
 
 2,055
Fair value, end of period$685,517
 $6,926
 $692,443
$887,457
 $11,997
 $899,454


56

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

The following tables present quantitative information about the significant unobservable inputs of the Company’s Level 3 investments as of March 31,June 30, 2017 and September 30, 2016:
Quantitative information about Level 3 Fair Value Measurements
Fair value as of March 31, 2017 Valuation Techniques Unobservable Input Range (Weighted Average)Fair value as of June 30, 2017 Valuation Techniques Unobservable Input Range (Weighted Average)
Assets:  
           
         
Senior secured loans(1)
$139,632
 Market rate approach Market interest rate 4.2% - 11.0% (6.8%)$146,483
 Market rate approach Market interest rate 5.3% - 10.8% (7.0%)
  
 Market comparable companies EBITDA multiples 6.0x - 17.5x (11.7x)  
 Market comparable companies EBITDA multiples 6.0x - 17.5x (11.8x)
7,697
 Market comparable Broker/dealer bids or quotes N/A8,807
 Market comparable Broker/dealer bids or quotes N/A
One stop loans(1)(2)
$950,467
 Market rate approach Market interest rate 5.5% - 33.3% (7.9%)$1,080,931
 Market rate approach Market interest rate 5.5% - 11.8% (8.1%)
  Market comparable companies 
EBITDA multiples (3)
 2.6x - 35.4x (12.9x)  Market comparable companies 
EBITDA multiples (3)
 4.0x - 35.0x (13.0x)
      
Revenue multiples (3)
 2.0x - 7.5x (5.1x)      
Revenue multiples (3)
 2.0x - 7.5x (5.1x)
Subordinated debt(1)
$53
 Market rate approach Market interest rate 19.5%$54
 Market rate approach Market interest rate 19.5%
  
 Market comparable companies EBITDA multiples 9.5x  
 Market comparable companies EBITDA multiples 10.5x
Equity (4)
$17,037
 Market comparable companies 
EBITDA multiples(5)
 4.0x - 21.5x (13.3x)$19,147
 Market comparable companies 
EBITDA multiples(5)
 4.0x - 21.5x (13.4x)
      
Revenue multiples(5)
 3.0x - 5.0x (4.0x)      
Revenue multiples(5)
 3.3x - 5.8x (4.2x)
 
(1) 
The fair value of this asset class was determined using the market rate approach as the investments in this asset class were determined not to be credit impaired using the market comparable companies approach. The unobservable inputs for both valuation techniques have been presented, but the fair value as of March 31,June 30, 2017 was determined using the market rate approach.
(2) 
Excludes $16$420 of non-accrual loans at fair value, which the Company valued on a liquidation basis.
(3) 
The Company valued $892,839$1,013,990 and $57,628$66,941 of one stop loans using EBITDA and revenue multiples, respectively. All one stop loans were also valued using the market rate approach.
(4) 
Excludes $52,423$48,118 of LLC equity interests in GCIC SLF at fair value, which the Company valued using the NAV.
(5) 
The Company valued $15,437$17,188 and $1,600$1,959 of equity investments using EBITDA and revenue multiples, respectively.



57

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

Quantitative information about Level 3 Fair Value Measurements
 Fair value as of September 30, 2016 Valuation Techniques Unobservable Input 
Range
(Weighted Average)
Assets:  
         
Senior secured loans (1)
$105,395
 Market rate approach Market interest rate 4.5% - 9.3% (6.4%)
    
 Market comparable companies EBITDA multiples 6.0x - 17.5x (11.8x)
 7,599
 Market comparable Broker/dealer bids or quotes N/A
Subordinated Notes of GCIC SLF$34,917
 Discounted cash flow analysis Discount rate 8.2%
One stop loans (1)(2)
$894,633
 Market rate approach Market interest rate 5.5% - 23.5% (7.8%)
    Market comparable companies 
EBITDA multiples (3)
 4.0x - 35.4x (12.8x)
        
Revenue multiples (3)
 2.0x - 7.5x (5.0x)
Subordinated debt (1)
$40
 Market rate approach Market interest rate 19.5%
    
 Market comparable companies EBITDA multiples 9.3x
Equity (4)
$14,071
 Market comparable companies 
EBITDA multiples (5)
 7.5x - 19.4x (12.9x)
        
Revenue multiples (5)
 2.0x - 5.5x (3.9x)
 
(1) 
The fair value of this asset class was determined using the market rate approach as the investments in this asset class were determined not to be credit impaired using the market comparable companies approach. The unobservable inputs for both valuation techniques have been presented, but the fair value as of September 30, 2016 was determined using the market rate approach.
(2) 
Excludes $16 of non-accrual loans at fair value, which the Company valued on a liquidation basis.
(3) 
The Company valued $837,035 and $57,598 of one stop loans using EBITDA and revenue multiples, respectively. All one stop loans were also valued using the market rate approach.
(4) 
Excludes $13,039 of LLC equity interests in GCIC SLF at fair value, which the Company valued using the NAV.
(5) 
The Company valued $12,546 and $1,525 of equity investments using EBITDA and revenue multiples, respectively.
The above tables are not intended to be all-inclusive but rather to provide information on significant unobservable inputs and valuation techniques used by the Company.

The significant unobservable inputs used in the fair value measurement of the Company’s debt and equity investments are EBITDA multiples, revenue multiples and market interest rates. The Company uses EBITDA multiples and, to a lesser extent, revenue multiples on its debt and equity investments to determine any credit gains or losses. Increases or decreases in either of these inputs in isolation may result in a significantly lower or higher fair value measurement. The Company uses market interest rates for loans to determine if the effective yield on a loan is commensurate with the market yields for that type of loan. If a loan’s effective yield is significantly less than the market yield for a similar loan with a similar credit profile, then the resulting fair value of the loan may be lower.

Other Financial Assets and Liabilities

ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. As a result, with the exception of the line item titled “debt” which is reported at cost, all assets and liabilities approximate fair value on the consolidated statements of financial condition due to their short maturity. Fair value of the Company’s debt is estimated using Level 3 inputs by discounting remaining payments using comparable market rates or market quotes for similar instruments at the measurement date, if available.



58

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

The following are the carrying values and fair values of the Company’s debt as of March 31,June 30, 2017 and September 30, 2016. Fair value is estimated by discounting remaining payments using applicable market rates or market quotes for similar instruments at the measurement date, if available.
 As of March 31, 2017 As of September 30, 2016
  Carrying Value Fair Value Carrying Value Fair Value
Debt$571,900
 $571,900
 $520,600
 $520,371
 As of June 30, 2017 As of September 30, 2016
  Carrying Value Fair Value Carrying Value Fair Value
Debt$630,850
 $630,850
 $520,600
 $520,371

Note 8.    Borrowings

In accordance with the 1940 Act, with certain limited exceptions, the Company is only allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 200% after such borrowing. As of March 31,June 30, 2017, the Company’s asset coverage for borrowed amounts was 210.1%211.0%.

Debt Securitization: On August 16, 2016, the Company completed a $410,086 term debt securitization (the “GCIC 2016 Debt Securitization”). The notes (“GCIC 2016 Notes”) offered in the GCIC 2016 Debt Securitization were issued by the GCIC 2016 Issuer and are secured by a diversified portfolio of senior secured and second lien loans held by the GCIC 2016 Issuer. The GCIC 2016 Debt Securitization consists of $220,000 of Aaa/AAA Class A GCIC 2016 Notes and $32,500 of Aa1 Class B GCIC 2016 Notes. In partial consideration for the loans transferred to the GCIC 2016 Issuer as part of the GCIC 2016 Debt Securitization, the Company received $42,300 of Class C GCIC 2016 Notes, $28,600 of Class D GCIC 2016 Notes and $86,686 of LLC equity interests in the GCIC 2016 Issuer. The Company retained all of the Class C GCIC 2016 Notes, Class D GCIC 2016 Notes and LLC equity interests totaling $42,300, $28,600 and $86,686, respectively. The Class A and Class B GCIC 2016 Notes are included in the March 31,June 30, 2017 and September 30, 2016 consolidated statements of financial condition as debt of the Company. As of March 31,June 30, 2017 and September 30, 2016, the Class C GCIC 2016 Notes, Class D GCIC 2016 Notes and LLC equity interests were eliminated in consolidation.

Through August 8, 2020, all principal collections received on the underlying collateral may be used by the GCIC 2016 Issuer to purchase new collateral under the direction of the Investment Adviser in its capacity as collateral manager of the GCIC 2016 Issuer and in accordance with the Company’s investment strategy, allowing the Company to maintain the initial leverage in the GCIC 2016 Debt Securitization. The GCIC 2016 Notes are scheduled to mature on August 8, 2028.

As of March 31,June 30, 2017 and September 30, 2016, there were 10497 and 100 portfolio companies with a total fair value of $396,620$381,779 and $346,494, respectively, securing the GCIC 2016 Notes. The pool of loans in the GCIC 2016 Debt Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.



59

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

The interest charged under the GCIC 2016 Debt Securitization is based on three-month LIBOR, which as of March 31,June 30, 2017 was 1.04%1.2%. For the three and sixnine months ended March 31,June 30, 2017 and 2016, the components of interest expense, cash paid for interest, annualized average interest rates and average outstanding balances for the GCIC 2016 Debt Securitization were as follows:
For the three months ended March 31, For the six months ended March 31,For the three months ended June 30, For the nine months ended June 30,
2017 2016 2017 20162017 2016 2017 2016
Stated interest expense$2,083
 N/A $4,037
 N/A$2,158
 N/A $6,195
 N/A
Amortization of debt issuance costs188
 N/A 379
 N/A191
 N/A 570
 N/A
Total interest and other debt financing expenses$2,271
 N/A $4,416
 N/A$2,349
 N/A $6,765
 N/A
Cash paid for interest expense$3,811
 N/A $3,811
 N/A$2,059
 N/A $5,870
 N/A
Annualized average stated interest rate3.3% N/A 3.2% N/A3.4% N/A 3.3% N/A
Average outstanding balance$252,500
 N/A $252,500
 N/A$252,500
 N/A $252,500
 N/A

As of March 31,June 30, 2017, the classes, amounts, ratings and interest rates (expressed as a spread to three-month LIBOR) of the Class A and B GCIC 2016 Notes were as follows:
Description Class A GCIC 2016 Notes Class B GCIC 2016 Notes
Type Senior Secured Floating Rate Senior Secured Floating Rate
Amount Outstanding $220,000 $32,500
Moody’s Rating “Aaa” “Aa1”
S&P Rating “AAA” N/A
Interest Rate LIBOR + 2.15% LIBOR + 3.00%
Stated Maturity August 8, 2028 August 8, 2028

The Investment Adviser serves as collateral manager to the GCIC 2016 Issuer under a separate collateral management agreement and receives a fee for providing these services. The total fees payable by the Company under its Investment Advisory Agreement isare reduced by an amount equal to the total aggregate fees that are paid to the Investment Adviser by the GCIC 2016 Issuer for rendering such collateral management services.

As part of the GCIC 2016 Debt Securitization, the Company entered into a master loan sale agreement under which the Company agreed to directly or indirectly sell or contribute certain senior secured and second lien loans (or participation interests therein) to the GCIC 2016 Issuer and to purchase or otherwise acquire the Class C GCIC 2016 Notes, Class D GCIC 2016 Notes and LLC equity interests in the GCIC 2016 Issuer. The GCIC 2016 Notes are the secured obligations of the GCIC 2016 Issuer and indentures governing the GCIC 2016 Notes include customary covenants and events of default. The pool of loans in the GCIC 2016 Debt Securitization must meet certain requirements, including asset mix and concentration, collateral coverage, term, agency rating, minimum coupon, minimum spread and sector diversity requirements.

Revolving Credit Facility: On December 31, 2014, as part of the Company’s acquisition of GCIC Funding as part of its formation transactions, the Company and GCIC Funding entered into an amendment to the senior secured revolving credit facility (as amended, the “Credit Facility”) with Wells Fargo Securities, LLC,Bank, N.A., as administrative agent and Wells Fargo Bank, N.A., as lender, which as of March 31,June 30, 2017 allowed GCIC Funding to borrow up to $420,000 at any one time outstanding, subject to leverage and borrowing base restrictions.



60

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

Through the reinvestment period, which ends May 12,as of June 30, 2017 ended August 10, 2017, the Credit Facility bears interest at one-month LIBOR plus 2.25% per annum. After the reinvestment period through the stated maturity date, which was August 11, 2020 as of June 30, 2017, the rate will reset to one-month LIBOR plus 2.75% per annum for the remaining term of the Credit Facility. In addition to the stated interest expense on the Credit Facility, the Company is required to pay a non-usage fee rate between 0.50% and 2.00% per annum depending on the size of the unused portion of the Credit Facility. The stated maturity date of the Credit Facility is May 13, 2020.

On March 9, 2016 the Credit Facility was amended to, among other things, make certain amendments to the computation of the borrowing base restrictions in the Credit Facility. The maximum borrowing capacity under the Credit Facility, the expiration of the reinvestment period and the stated maturity date of the Credit Facility did not change in connection with this amendment.

On July 12, 2016, the Company and GCIC Funding amended the Credit Facility to, among other things, increase the size of the Credit Facility from $370,000 to $420,000.

On May 11, 2017, the Company and GCIC Funding amended the Credit Facility to, among other things, (a) extend the expiration of the reinvestment period from May 12, 2017 to August 10, 2017 and (b) extend the stated maturity date to August 11, 2020.

The Credit Facility is collateralized by all of the assets held by GCIC Funding, and GCIC has pledged its interests in GCIC Funding as collateral to Wells Fargo Bank, N.A., as the collateral agent, under an ancillary agreement to secure the obligations of GCIC as the transferor and servicer under the Credit Facility. Both GCIC and GCIC Funding have made customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. Borrowing under the Credit Facility is subject to the leverage restrictions contained in the 1940 Act.

The Company has transferred certain loans and debt securities it has originated or acquired from time to time to GCIC Funding through a purchase and sale agreement and may cause GCIC Funding to originate or acquire loans in the future, consistent with the Company’s investment objectives.

As of March 31,June 30, 2017 and September 30, 2016, the Company had outstanding debt under the Credit Facility of $270,200$303,350 and $193,100, respectively. For the three and sixnine months ended March 31,June 30, 2017, the Company had borrowings on the Credit Facility of $95,900$170,350 and $168,550,$338,900, respectively, and repayments on the Credit Facility of $16,250$137,200 and $91,450,$228,650, respectively. For the three and sixnine months ended March 31,June 30, 2016, the Company had borrowings on the Credit Facility of $185,650$215,900 and $258,450,$474,350, respectively, and repayments on the Credit Facility of $104,550$190,450 and $204,250,$394,700, respectively.

For the three and six months ended March 31, 2017 and 2016, the components of interest expense, cash paid for interest and facility fees, annualized average interest rates and average outstanding balances for the Credit Facility were as follows:
 For the three months ended March 31, For the six months ended March 31,
  2017 2016 2017 2016
Stated interest expense$1,755
 $1,771
 $3,110
 $3,343
Facility fees240
 138
 540
 296
Amortization of debt issuance costs623
 486
 1,260
 964
Total interest and other debt financing expenses$2,618
 $2,395
 $4,910
 $4,603
Cash paid for interest expense and facility fees$1,853
 $1,835
 $3,449
 $3,508
Annualized average stated interest rate3.1% 2.7% 3.0% 2.6%
Average outstanding balance$227,686
 $261,421
 $206,479
 $253,547



61

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

For the three and nine months ended June 30, 2017 and 2016, the components of interest expense, cash paid for interest and facility fees, annualized average interest rates and average outstanding balances for the Credit Facility were as follows:
 For the three months ended June 30, For the nine months ended June 30,
  2017 2016 2017 2016
Stated interest expense$2,332
 $2,170
 $5,442
 $5,513
Facility fees179
 65
 719
 361
Amortization of debt issuance costs475
 517
 1,735
 1,481
Total interest and other debt financing expenses$2,986
 $2,752
 $7,896
 $7,355
Cash paid for interest expense and facility fees$2,421
 $2,213
 $5,870
 $5,721
Annualized average stated interest rate3.4% 2.7% 3.2% 2.7%
Average outstanding balance$278,657
 $318,773
 $230,538
 $275,210

Revolver: On February 3, 2015, the Company entered into the Revolver with the Investment Adviser, with a maximum credit limit of $40,000 and expiration date of February 3, 2018. The Revolver bears an interest rate equal to the short-term Applicable Federal Rate (“AFR”), which was 1.0%1.2% as of March 31,June 30, 2017. As of March 31,June 30, 2017 and September 30, 2016, the Company had no outstanding debt under the Revolver. For each of the three and sixnine months ended March 31,June 30, 2017, the Company had borrowings on the Revolver of $0 and $0 and repayments on the Revolver of $0 and $0, respectively.$0. For the three and sixnine months ended March 31,June 30, 2016, the Company had borrowings on the Revolver of $4,000$12,200 and $65,800$78,000 and repayments on the Revolver of $4,000$12,200 and $65,800,$78,000, respectively.

For the three and sixnine months ended March 31,June 30, 2017 and 2016, the components of interest expense, cash paid for interest, annualized average interest rates and average outstanding balances for the Revolver were as follows:
For the three months ended March 31, For the six months ended March 31,For the three months ended June 30, For the nine months ended June 30,
2017 2016 2017 20162017 2016 2017 2016
Stated interest expense$
 $1
 $
 $7
$
 $1
 $
 $8
Cash paid for interest expense$
 $7
 $
 $7
$
 $1
 $
 $8
Annualized average stated interest rateN/A 0.8% N/A 0.6%N/A 0.7% N/A 0.6%
Average outstanding balance$
 $712
 $
 $2,491
$
 $546
 $
 $1,845

SMBC Revolver: On May 17, 2016, the Company entered into a revolving credit agreement with Sumitomo Mitsui Banking Corporation (the “SMBC Revolver”), which as of March 31,June 30, 2017 allowed GCIC to borrow up to $75,000 at any one time outstanding, subject to leverage and borrowing base restrictions, with a stated maturity date of May 17, 2018.

The SMBC Revolver bears an interest rate at the Company's election of either one-month LIBOR plus 1.60% per annum or Prime. In addition to the stated interest rate on the SMBC Revolver, the Company is required to pay a non-usage fee at a rate of 0.25% per annum on the unused portion of the SMBC Revolver.

The SMBC Revolver is secured by the unfunded capital commitments of certain GCIC stockholders. GCIC has made customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities. Borrowing under the SMBC Revolver is subject to the leverage restrictions contained in the 1940 Act.

As of March 31, 2017 and September 30, 2016, the Company had outstanding debt under the SMBC Revolver of $49,200 and $75,000, respectively. For the three and six months ended March 31, 2017, the Company had borrowings on the SMBC Revolver of $19,200 and $19,200, respectively, and repayments on the SMBC Revolver of $45,000 and $45,000, respectively. The SMBC Revolver was not in existence for the three and six months ended March 31, 2016.



62

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   


As of June 30, 2017 and September 30, 2016, the Company had outstanding debt under the SMBC Revolver of $75,000 and $75,000, respectively. For the three and sixnine months ended March 31,June 30, 2017, the Company had borrowings on the SMBC Revolver of $39,800 and $59,000, respectively, and repayments on the SMBC Revolver of $14,000 and $59,000, respectively. For each of the three and nine months ended June 30, 2016, the Company had borrowings on the SMBC Revolver of $75,000 and repayments on the SMBC Revolver of $0.

For the three and nine months ended June 30, 2017 and 2016, the components of interest expense, cash paid for interest, annualized average interest rates and average outstanding balances for the SMBC Revolver were as follows:
For the three months ended March 31, For the six months ended March 31,For the three months ended June 30, For the nine months ended June 30,
2017 2016 2017 20162017 2016 2017 2016
Stated interest expense$353
 N/A $767
 N/A$416
 $193
 $1,183
 $193
Facility fees18
 1
 18
 1
Amortization of debt issuance costs71
 N/A 142
 N/A75
 28
 217
 28
Total interest and other debt financing expenses$424
 N/A $909
 N/A$509
 $222
 $1,418
 $222
Cash paid for interest expense$353
 N/A $787
 N/A$322
 $132
 $1,110
 $132
Annualized average stated interest rate2.5% N/A
2.3% N/A2.7% 2.1%
2.4% 2.1%
Average outstanding balance$58,336
 N/A $66,759
 N/A$62,760
 $36,264
 $65,426
 $12,044

The Company’s average total debt outstanding (including the debt under the Credit Facility, Revolver, SMBC Revolver, and GCIC 2016 Debt Securitization) for the three and sixnine months ended March 31,June 30, 2017 was $538,522$593,917 and $525,738,$548,464, respectively. The Company’s average total debt outstanding (including the debt under the Credit Facility and Revolver) for the three and sixnine months ended March 31,June 30, 2016 was $262,133$355,583 and $256,038,$289,099, respectively.

For the three and sixnine months ended March 31,June 30, 2017, the effective annualized average interest rate, which includes amortization of debt issuance costs and non-usage facility fees, on the Company’s total debt outstanding was 4.0% and 3.9%, respectively. For the three and sixnine months ended March 31,June 30, 2016, the effective annualized average interest rate, which includes amortization of debt issuance costs and non-usage facility fees, on the Company’s total debt outstanding was 3.7%3.4% and 3.6%3.5%, respectively.

A summary of the Company’s maturity requirements for borrowings as of March 31,June 30, 2017 is as follows:
Payments Due by PeriodPayments Due by Period
Total 
Less Than
1 Year
 1 – 3 Years 3 – 5 Years 
More Than
5 Years
Total 
Less Than
1 Year
 1 – 3 Years 3 – 5 Years 
More Than
5 Years
GCIC 2016 Debt Securitization$252,500
 $
 $
 $
 $252,500
$252,500
 $
 $
 $
 $252,500
Credit Facility270,200
 
 
 270,200
 
303,350
 
 
 303,350
 
SMBC Revolver49,200
 
 49,200
 
 
75,000
 75,000
 
 
 
Revolver
 
 
 
 

 
 
 
 
Total borrowings$571,900
 $
 $49,200
 $270,200
 $252,500
$630,850
 $75,000
 $
 $303,350
 $252,500

Note 9.    Commitments and Contingencies

Commitments: The Company had outstanding commitments to fund investments totaling $54,205$126,954 and $42,747 under various undrawn revolvers and other credit facilities as of March 31,June 30, 2017 and September 30, 2016, respectively. In addition, as described in Note 5, the Company had commitments of up to $58,035 and $62,200 to GCIC SLF as of March 31, 2017 and September 30, 2016, respectively, that may be contributed primarily for the purpose of funding new investments approved by the GCIC SLF investment committee.

Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as these involve future claims thatSeptem


63

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

ber 30, 2016, respectively. In addition, as described in Note 5, the Company had commitments of up to $62,200 and $62,200 to GCIC SLF as of June 30, 2017 and September 30, 2016, respectively, that may be contributed primarily for the purpose of funding new investments approved by the GCIC SLF investment committee.

Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as these involve future claims that may be made against the Company but that have not occurred. The Company expects the risk of any future obligations under these indemnifications to be remote.

Off-balance sheet risk: Off-balance sheet risk refers to an unrecorded potential liability that may result in a future obligation or loss, even though it does not appear on the consolidated statements of financial condition. The Company may enter into derivative instruments that contain elements of off-balance sheet market and credit risk. There were no commitments outstanding for derivative contracts as of March 31,June 30, 2017 and September 30, 2016. Derivative instruments can be affected by market conditions, such as interest rate volatility, which could impact the fair value of the derivative instruments. If market conditions move against the Company, it may not achieve the anticipated benefits of any derivative instruments and may realize a loss. The Company minimizes market risk through monitoring its investments and borrowings.

Concentration of credit and counterparty risk: Credit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of the contract. The Company may engage in derivative transactions with counterparties. In the event that the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparties or issuers of the instruments. The Company’s maximum loss that it could incur related to counterparty risk on derivative instruments is the value of the collateral for that respective derivative instrument. It is the Company’s policy to review, as necessary, the credit standing of each counterparty.

Legal proceedings: In the normal course of business, the Company may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While there can be no assurance of the ultimate disposition of any such proceedings, the Company does not believe any disposition will have a material adverse effect on the Company’s consolidated financial statements.



64

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

Note 10. Financial Highlights

The financial highlights for the Company are as follows:
 Six months ended March 31, Nine months ended June 30,
Per share data:(1)
 2017 2016 2017 2016
Net asset value at beginning of period $15.00
 $15.00
 $15.00
 $15.00
Distributions declared:(2)
        
From net investment income (0.65) (0.58) (0.96) (0.92)
From capital gains 0.00
(3) 

 0.00
(3) 

Net investment income 0.52
 0.51
 0.83
 0.77
Net realized gain (loss) on investments 
 0.03
 0.01
 0.02
Net change in unrealized appreciation (depreciation) on investments 0.13
 0.04
 0.12
 0.14
Other (4)
 
 (0.01)
Net asset value at end of period $15.00
 $15.00
 $15.00
 $15.00
Per share net asset value at end of period $15.00
 $15.00
 $15.00
 $15.00
Total return based on net asset value per share(4)
 4.41% 3.90%
Total return based on net asset value per share(5)
 6.57% 6.25%
Number of common shares outstanding 42,104,997.486
 27,261,737.139
 46,829,343.936
 34,122,546.688
 Six months ended March 31, Nine months ended June 30,
Listed below are supplemental data and ratios to the financial highlights: 2017 2016 2017 2016
Ratio of net investment income to average net assets*
 7.01 % 6.81 % 7.47 % 6.85 %
Ratio of total expenses to average net assets (5)*
 7.11 % 6.01 %
Ratio of total expenses to average net assets (6)*
 7.64 % 6.48 %
Ratio of management fee waiver to average net assets *
 (0.67)% (0.63)% (0.68)% (0.64)%
Ratio of incentive fee waiver to average net assets  % N/A
 (0.12)% N/A
Ratio of net expenses to average net assets (5)*
 6.44 % 5.38 %
Ratio of net expenses to average net assets (6)*
 6.84 % 5.84 %
Ratio of incentive fees to average net assets 0.80 % 0.55 % 1.29 % 0.96 %
Ratio of total expenses (without incentive fees, incentive fee waiver and management fee waiver) to average net assets*
 6.31 % 5.46 % 6.35 % 5.52 %
Net assets at end of period $631,575
 $408,926
 $702,440
 $511,838
Average debt outstanding $525,738
 $256,038
 $548,464
 $289,099
Average debt outstanding per share $12.49
 $9.39
 $11.71
 $8.47
Asset coverage ratio(6)(7)
 210.08 % 234.33 % 210.98 % 226.39 %
Portfolio turnover *
 17.47 % 61.96 % 24.09 % 46.84 %
 
* Annualized for a period less than one year.
(1) 
Based on actual number of shares outstanding at the end of the corresponding period or the weighted average shares outstanding for the period, unless otherwise noted, as appropriate.
(2) 
The per share data for distributions reflect the amount of distributions paid or payable with a record date during the applicable period.
(3) 
Represents an amount less than $0.01 per share.
(4) 
Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on the shares outstanding as of the period end.
(5)
Total return based on net asset value assumes distributions are reinvested in accordance with the DRIP. Total return does not include sales load.
(5)(6) 
Expenses, other than incentive fees, are annualized for a period less than one year.
(6)(7) 
In accordance with the 1940 Act, with certain limited exceptions, the Company is only allowed to borrow amounts such that its asset coverage, as defined in the 1940 Act, is at least 200% after such borrowing.



65

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)
   

Note 11. Earnings Per Share

The following information sets forth the computation of the net increase in net assets per share resulting from operations for the three and sixnine months ended March 31,June 30, 2017 and 2016:
Three months ended March 31, Six months ended March 31,Three months ended June 30, Nine months ended June 30,
2017 2016 2017 20162017 2016 2017 2016
Earnings available to stockholders$12,694
 $7,294
 $27,274
 $13,952
$14,210
 $10,033
 $41,484
 $23,985
Basic and diluted weighted average shares outstanding41,892,513
 25,707,003
 41,569,032
 23,916,838
45,882,813
 29,278,962
 43,006,959
 25,697,689
Basic and diluted earnings per share$0.30
 $0.28
 $0.65
 $0.58
$0.31
 $0.35
 $0.96
 $0.93


Note 12. Dividends and Distributions

The Company’s dividends and distributions are recorded on the record date. The following table summarizes the Company’s dividend declarations and distributions during the sixnine months ended March 31,June 30, 2017 and 2016:
Date Declared Record Date Payment Date Shares Outstanding Amount Per Share Cash Distribution DRIP Shares Value DRIP Shares Issued Record Date Payment Date Shares Outstanding Amount Per Share Cash Distribution DRIP Shares Value DRIP Shares Issued
                    
For the six months ended March 31, 2017        
For the nine months ended June 30, 2017For the nine months ended June 30, 2017        
08/03/2016 10/24/2016 12/30/2016 41,087,178.250
 $0.0729
 $1,366
 $1,627
 108,467.710
 10/24/2016 12/30/2016 41,087,178.250
 $0.0729
 $1,366
 $1,627
 108,467.710
11/14/2016 11/18/2016 12/30/2016 41,087,178.250
 $0.1469
 $2,754
 $3,280
 218,653.262
 11/18/2016 12/30/2016 41,087,178.250
 $0.1469
 $2,754
 $3,280
 218,653.262
11/14/2016 12/26/2016 02/27/2017 41,442,374.044
 $0.1340
 $2,563
 $2,990
 199,352.082
 12/26/2016 02/27/2017 41,442,374.044
 $0.1340
 $2,563
 $2,990
 199,352.082
11/14/2016 01/23/2017 02/27/2017 41,769,495.016
 $0.0902
 $1,727
 $2,042
 136,150.388
 01/23/2017 02/27/2017 41,769,495.016
 $0.0902
 $1,727
 $2,042
 136,150.388
02/07/2017 02/20/2017 05/19/2017 41,769,495.016
 $0.1050
 $2,080
 $2,305
 
N/A (1)

 02/20/2017 05/19/2017 41,769,495.016
 $0.1050
 $2,080
 $2,305
 153,637.410
02/07/2017 03/24/2017 05/19/2017 42,104,997.486
 $0.1078
 $2,138
 $2,402
 
N/A (1)

 03/24/2017 05/19/2017 42,104,997.486
 $0.1078
 $2,138
 $2,402
 160,137.974
02/07/2017 04/30/2017 07/28/2017 44,292,283.019
 $0.1067
 $2,241
 $2,486
 
N/A (1)

05/04/2017 05/18/2017 07/28/2017 46,515,568.552
 $0.0982
 $2,171
 $2,395
 
N/A (1)

05/04/2017 06/16/2017 07/28/2017 46,829,343.936
 $0.1050
 $2,323
 $2,594
 
N/A (1)

                    
For the six months ended March 31, 2016        
For the nine months ended June 30, 2016For the nine months ended June 30, 2016        
08/04/2015 10/27/2015 12/30/2015 20,843,155.219
 $0.0818
 $744
 $961
 64,075.512
 10/27/2015 12/30/2015 20,843,155.219
 $0.0818
 $744
 $961
 64,075.512
11/17/2015 11/19/2015 12/30/2015 22,172,613.752
 $0.1252
 $1,213
 $1,563
 104,219.497
 11/19/2015 12/30/2015 22,172,613.752
 $0.1252
 $1,213
 $1,563
 104,219.497
11/17/2015 12/17/2015 02/26/2016 24,433,662.992
 $0.0891
 $950
 $1,228
 81,866.709
 12/17/2015 02/26/2016 24,433,662.992
 $0.0891
 $950
 $1,228
 81,866.709
11/17/2015 01/22/2016 02/26/2016 24,601,958.001
 $0.0957
 $1,019
 $1,335
 88,981.506
 01/22/2016 02/26/2016 24,601,958.001
 $0.0957
 $1,019
 $1,335
 88,981.506
02/08/2016 02/22/2016 05/20/2016 24,601,958.001
 $0.0705
 $876
 $858
 
N/A (2)

 02/22/2016 05/20/2016 24,601,958.001
 $0.0705
 $876
 $858
 57,176.462
02/08/2016 03/24/2016 05/20/2016 27,261,737.139
 $0.1176
 $1,596
 $1,609
 
N/A (2)

 03/24/2016 05/20/2016 27,261,737.139
 $0.1176
 $1,596
 $1,609
 107,293.202
05/03/2016 04/30/2016 07/28/2016 27,261,737.139
 $0.1046
 $1,420
 $1,432
 
N/A (2)

05/03/2016 05/19/2016 07/28/2016 29,256,215.216
 $0.1331
 $1,925
 $1,968
 
N/A (2)

05/03/2016 06/20/2016 07/28/2016 31,415,162.957
 $0.1047
 $1,608
 $1,680
 
N/A (2)

 
(1) 
The DRIP shares were not issued as of March 31,June 30, 2017.
(2) 
The DRIP shares were not issued as of March 31,June 30, 2016. On May 20,July 28, 2016, the Company issued 164,469.664338,670.977 of shares through the DRIP.



66

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

Note 13. Subsequent Events

In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through May 11,August 9, 2017, the date the financial statements were available to be issued. There are no subsequent events to disclose except for the following:

On February 7, 2017 and May 4, 2017 and August 2, 2017, the board of directorsBoard declared distributions to holders of record as set forth in the table below:

Record Date Payment Date Amount Per Share
April 30, 2017July 28, 2017Net increase in net assets resulting from operations earned by the Company (if positive) as determined in accordance with GAAP for the period April 1, 2017 through April 30, 2017 per share
May 18, 2017July 28, 2017Net increase in net assets resulting from operations earned by the Company (if positive) as determined in accordance with GAAP for the period May 1, 2017 through May 31, 2017 per share
June 16, 2017July 28, 2017Net increase in net assets resulting from operations earned by the Company (if positive) as determined in accordance with GAAP for the period June 1, 2017 through June 30, 2017 per share
July 21, 2017 September 25, 2017 Net increase in net assets resulting from operations earned by the Company (if positive) as determined in accordance with GAAP for the period July 1, 2017 through July 31, 2017 per share
August 31, 2017November 27, 2017Net increase in net assets resulting from operations earned by the Company (if positive) as determined in accordance with GAAP for the period August 1, 2017 through August 31, 2017 per share
September 22, 2017November 27, 2017Net increase in net assets resulting from operations earned by the Company (if positive) as determined in accordance with GAAP for the period September 1, 2017 through September 30, 2017 per share
October 23, 2017December 28, 2017Net increase in net assets resulting from operations earned by the Company (if positive) as determined in accordance with GAAP for the period October 1, 2017 through October 31, 2017 per share

The Company issued capital calls to stockholders that were due on April 3, 2017 and May 1,July 31, 2017, which are summarized in the following table:
  Date Shares Issued NAV ($) per share Proceeds
Issuance of shares 04/03/2017 2,187,285.533 $15.00
 $32,809
Issuance of shares 05/01/2017 2,223,285.533 15.00
 33,349
  Date Shares Issued NAV ($) per share Proceeds
Issuance of shares 7/31/2017 2,223,285.533 $15.00
 $33,350



66

Golub Capital Investment Corporation and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
(In thousands, except shares and per share data)

On May 11,August 8, 2017, GCIC Funding entered into an amendment, or the Credit Facility Amendment, to the documents governing the Credit Facility. The Credit Facility Amendment is effective as of May 11,August 8, 2017. The Credit Facility Amendment, among other things, (a) extended the expiration of the reinvestment period from May 12,August 10, 2017 to August 10,29, 2017, during which period GCIC Funding, subject to certain conditions, may make borrowings under the facility and (b) extend the stated maturity date to August 11,30, 2020. The size, interest rate and other material terms of the Credit Facility were unchanged.


67



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information contained in this section should be read in conjunction with our interim and unaudited consolidated financial statements and related notes thereto appearing elsewhere in this quarterly report on Form 10-Q. In this report, "we," "us," "our" and "GCIC" refer to Golub Capital Investment Corporation and its consolidated subsidiaries.

Forward-Looking Statements

Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties, including statements as to:

our future operating results;
our business prospects and the prospects of our portfolio companies;
the effect of investments that we expect to make and the competition for those investments;
our contractual arrangements and relationships with third parties;
completion of a public offering of our securities or other liquidity event;
actual and potential conflicts of interest with GC Advisors LLC, or GC Advisors, and other affiliates of Golub Capital LLC, or collectively, Golub Capital;
the dependence of our future success on the general economy and its effect on the industries in which we invest;
the ability of our portfolio companies to achieve their objectives;
the use of borrowed money to finance a portion of our investments;
the adequacy of our financing sources and working capital;
the timing of cash flows, if any, from the operations of our portfolio companies;
general economic and political trends and other external factors;
the ability of GC Advisors to locate suitable investments for us and to monitor and administer our investments;
the ability of GC Advisors or its affiliates to attract and retain highly talented professionals;
our ability to qualify and maintain our qualification as a regulated investment company, or RIC, and as a business development company;
general price and volume fluctuations in the stock markets;
the impact on our business of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations issued thereunder and any actions toward repeal thereof; and
the effect of changes to tax legislation and our tax position.

Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” ”predict,” “potential,” “plan” or similar words. The forward looking statements contained in this Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth elsewhere in this quarterly report on Form 10-Q and as “Risk Factors” in our amended registration statement on Form 10, filed with the Securities and Exchange Commission, or the SEC, on November 30, 2016.



68


We have based the forward-looking statements included in this report on information available to us on the date of this report. Actual results could differ materially from those anticipated in our forward-looking statements and future results could differ materially from historical performance. You are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. This quarterly report on Form 10-Q contains statistics and other data that have been obtained from or compiled from information made available by third-party service providers. We have not independently verified such statistics or data.

Overview

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 RIC under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code. As a business development company and a RIC, we are also subject to certain constraints, including limitations imposed by the 1940 Act and the Code. We were formed in September 2014 and commenced operations on December 31, 2014.

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 may also selectively invest in second lien and subordinated loans of, and warrants and minority equity securities in, U.S. middle-market companies. We intend to achieve our investment objective by (1) accessing the established loan origination channels developed by Golub Capital, a leading lender to U.S. middle-market companies with over $20.0 billion in capital under management as of March 31,June 30, 2017, (2) selecting investments within our core middle-market company focus, (3) partnering with experienced private equity firms, or sponsors, in many cases with whom Golub Capital has invested alongside in the past, (4) implementing the disciplined underwriting standards of Golub Capital and (5) drawing upon the aggregate experience and resources of Golub Capital.

Our investment activities are managed by GC Advisors and supervised by our board of directors of which a majority of the members are independent of us, GC Advisors and its affiliates.

Under an investment advisory agreement, or the Investment Advisory Agreement, which was most recently reapproved by our board of directors in May 2017, we have agreed to pay GC Advisors an annual base management fee based on our average adjusted gross assets as well as an incentive fee based on our investment performance. Under an administration agreement, or the Administration Agreement, we are provided with certain administrative services by an administrator, or the Administrator, which is currently Golub Capital LLC.

Under the Administration Agreement, we have agreed to reimburse the Administrator for our allocable portion (subject to the review and approval of our independent directors) of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement.

We seek to create a portfolio that includes primarily senior secured and one stop loans by primarily investing approximately $5.0 million to $30.0 million of capital, on average, in the securities of U.S. middle-market companies. We may also selectively invest more than $30.0 million in some of our portfolio companies and generally expect that the size of our individual investments will vary proportionately with the size of our capital base.


69


We generally invest in securities that have been rated below investment grade by independent rating agencies or that would be rated below investment grade if they were rated. These securities, which may be referred to as “junk,” have predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. In addition, many of our debt investments have floating interest rates that reset on a periodic basis and typically do not fully pay down principal prior to maturity, which may increase our risk of losing part or all of our investment.

As of March 31,June 30, 2017 and September 30, 2016, our portfolio at fair value was comprised of the following:
 As of March 31, 2017 As of September 30, 2016  As of June 30, 2017 As of September 30, 2016 
Investment Type 
Investments at
 Fair Value
(In thousands)
 Percentage of
Total
Investments
 
Investments at
 Fair Value
(In thousands)
 
Percentage of
Total
Investments
  
Investments at
 Fair Value
(In thousands)
 Percentage of
Total
Investments
 
Investments at
 Fair Value
(In thousands)
 
Percentage of
Total
Investments
 
Senior secured $147,329
 12.6
%$112,994
 10.6
% $155,290
 11.9%$112,994
 10.6%
One stop 950,483
 81.4
 894,649
 83.6
  1,081,351
 82.9 894,649
 83.6 
Subordinated debt 53
 0.0
*40
 0.0
* 54
 0.0*40
 0.0*
Subordinated notes in GCIC SLF(1)(2)
 
 
 34,917
 3.3
  
  34,917
 3.3 
LLC equity interests in GCIC SLF(2)
 52,423
 4.5
 13,039
 1.2
  48,118
 3.7 13,039
 1.2 
Equity 17,037
 1.5
 14,071
 1.3
  19,147
 1.5 14,071
 1.3 
Total $1,167,325
 100.0
%$1,069,710
 100.0
% $1,303,960
 100.0%$1,069,710
 100.0%
 
* Represents an amount less than 0.1%
(1) 
On December 30, 2016, GCIC Senior Loan Fund LLC, or GCIC SLF, issued a capital call in an aggregate amount of $39.9 million the proceeds of which were used to redeem in full the outstanding balance on the subordinated notes previously issued by GCIC SLF and terminate all remaining subordinated note commitments.
(2) 
Proceeds from the subordinated notes and limited liability company, or LLC, equity interests invested in GCIC SLF were utilized by GCIC SLF to invest in senior secured loans.
One stop loans include loans to technology companies undergoing strong growth due to new services, increased adoption and/or entry into new markets. We refer to loans to these companies as late stage lending loans. Other targeted characteristics of late stage lending businesses include strong customer revenue retention rates, a diversified customer base and backing from growth equity or venture capital firms. In some cases, the borrower’s high revenue growth is supported by a high level of discretionary spending. As part of the underwriting of such loans and consistent with industry practice, we may adjust our characterization of the earnings of such borrowers for a reduction or elimination of such discretionary expenses, if appropriate. As of March 31,June 30, 2017 and September 30, 2016, one stop loans included $57.6$66.9 million and $57.6 million, respectively, of late stage lending loans at fair value.

As of March 31,June 30, 2017 and September 30, 2016, we had debt and equity investments in 162165 and 158 portfolio companies, respectively, and an investment in GCIC SLF.



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The weighted average annualized income yield and weighted average annualized investment income yield of our earning portfolio company investments, which represented nearly 100% of our debt investments, for the three and sixnine months ended March 31,June 30, 2017 and 2016 was as follows:
For the three months ended March 31, For the six months ended March 31,For the three months ended June 30, For the nine months ended June 30,
2017 2016 2017 20162017 2016 2017 2016
Weighted average annualized income yield(1)(3)
7.6% 7.4% 7.6% 7.3%7.9% 7.4% 7.7% 7.3%
Weighted average annualized investment income yield(2)(3)
7.9% 8.0% 8.0% 7.7%8.6% 7.7% 8.3% 7.7%
 
(1) 
Represents income from interest, including subordinated notes in GCIC SLF, and fees excluding amortization of capitalized fees and discounts divided by the average fair value of earning portfolio company investments, and does not represent a return to any investor in us.
(2) 
Represents income from interest, including subordinated notes in GCIC SLF, fees and amortization of capitalized fees and discounts divided by the average fair value of earning portfolio company investments, and does not represent a return to any investor in us.
(3) 
For the three months ending March 31,June 30, 2017, weighted average annualized income yield and weighted average annualized investment income yield doesdo not reflect interest income from subordinated notes in GCIC SLF, which were redeemed on December 30, 2016.
The total return, based on the change in the net asset value, or NAV, per share and assuming distributions were reinvested in accordance with the dividend reinvestment plan, or DRIP, for the sixnine months ended March 31,June 30, 2017 and 2016, was 4.41%6.57% and 3.90%6.25%, respectively. The total return does not include sales load.

As of March 31,June 30, 2017, GCIC has earned an inception-to-date internal rate of return, or IRR, of 8.9%8.8% for stockholders taken as a whole. For the sixnine months ended March 31,June 30, 2017 and 2016, GCIC has earned an annual IRR of 9.1%8.9% and 8.0%8.5%, respectively, for stockholders taken as a whole. An individual stockholder’s IRR may vary based on the timing of their capital transactions. The IRR is the annualized effective compound rate of return that brings a series of cash flows to the current value of the cash invested. The IRR was computed based on the actual dates of cash inflows (share issuances, including share issuances through the DRIP), outflows (capital distributions), the stockholders’ NAV at the end of the period and distributions declared and payable at the end of the period (residual value of the stockholders’ NAV and distributions payable as of each measurement date).

Revenues: We generate revenue in the form of interest and fee income on debt investments and capital gains and distributions, if any, on portfolio company investments that we originate or acquire. Our debt investments typically have a term of three to seven years and bear interest at a fixed or floating rate. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. The frequency or volume of these repayments fluctuates significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. In some cases, our investments provide for deferred interest payments or payment-in-kind, or PIK, interest. The principal amount of loans and any accrued but unpaid interest generally become due at the maturity date. In addition, we may generate revenue in the form of commitment, origination, amendment, structuring or due diligence fees, fees for providing managerial assistance and consulting fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts as interest income. We record prepayment premiums on loans as fee income. For additional details on revenues, see “Critical Accounting Policies - Revenue Recognition.”

We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the amortized cost basis of the investment, without regard to unrealized gains or losses previously recognized. We record current period changes in fair value of investments that are


71


measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments in the consolidated statements of operations.

Expenses: Our primary operating expenses include the payment of fees to GC Advisors under the Investment Advisory Agreement and interest expense on our outstanding debt. We bear all out-of-pocket costs and expenses of our operations and transactions, including:

reimbursement to GC Advisors of organizational and offering expenses up to an aggregate amount of $0.7 million;
calculating our NAV (including the cost and expenses of any independent valuation firm);
fees and expenses incurred by GC Advisors payable to third parties, including agents, consultants or other advisors, in monitoring financial and legal affairs for us and in monitoring our investments and performing due diligence on our prospective portfolio companies or otherwise relating to, or associated with, evaluating and making investments, which fees and expenses may include, among other items, due diligence reports, appraisal reports, any studies that may be commissioned by GC Advisors and travel and lodging expenses;
expenses related to unsuccessful portfolio acquisition efforts;
administration fees and expenses, if any, payable under the Administration Agreement (including payments based upon our allocable portion of the Administrator’s overhead in performing its obligations under the Administration Agreement, including rent and the allocable portion of the cost of our chief compliance officer, chief financial officer and their respective staffs);
fees payable to third parties, including agents, consultants or other advisors, relating to, or associated with, evaluating and making investments in portfolio companies, including costs associated with meeting financial sponsors;
transfer agent, dividend agent and custodial fees and expenses;
U.S. federal and state registration and franchise fees;
U.S. federal, state and local taxes;
independent directors’ fees and expenses;
costs of preparing and filing reports or other documents required by the SEC or other regulators;
costs of any reports, proxy statements or other notices to stockholders, including printing costs;
costs associated with individual or group stockholders;
our allocable portion of any fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums;
direct costs and expenses of administration, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors and outside legal costs;
proxy voting expenses; and
all other expenses incurred by us or the Administrator in connection with administering our business.

We expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines.

GC Advisors, as collateral manager for Golub Capital Investment Corporation 2016(M) LLC, or the GCIC 2016 Issuer, our wholly-owned subsidiary, under a collateral management agreement, or the GCIC 2016 Collateral Management Agreement, is entitled to receive an annual fee in an amount equal to 0.25% of the principal balance of the portfolio loans held by the GCIC 2016 Issuer at the beginning of the collection period relating to each payment date, which is payable in arrears on each payment date. Under the GCIC 2016 Collateral Management Agreement, the term “collection period” refers to a quarterly


72


period running from the day after the end of the prior collection period to the tenth business day prior to the payment date.

Collateral management fees are paid directly by the GCIC 2016 Issuer to GC Advisors and offset against the management fees payable under the Investment Advisory Agreement. In addition, the GCIC 2016 Issuer paid Wells Fargo Securities, LLC structuring and placement fees for its services in connection with the initial structuring of a $410.1 million term debt securitization, or the GCIC 2016 Debt Securitization. The GCIC 2016 Issuer also agreed to pay ongoing administrative expenses to the trustee, collateral manager, independent accountants, legal counsel, rating agencies and independent managers in connection with developing and maintaining reports and providing required services in connection with the administration of the GCIC 2016 Debt Securitization.

We believe that these administrative expenses approximate the amount of ongoing fees and expenses that we would be required to pay in connection with a traditional secured credit facility. Our common stockholders indirectly bear all of these expenses.

Recent Developments

On February 7,May 4, 2017 and May 4,August 2, 2017, our board of directors declared distributions to holders of record as set forth in the table below:

Record Date Payment Date Amount Per Share
April 30, 2017July 28, 2017Net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with generally accepted accounting principles in the United States of America, or GAAP, for the period April 1, 2017 through April 30, 2017 per share
May 18, 2017July 28, 2017Net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period May 1, 2017 through May 31, 2017 per share
June 16, 2017July 28, 2017Net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period June 1, 2017 through June 30, 2017 per share
July 21, 2017 September 25, 2017 Net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period July 1, 2017 through July 31, 2017 per share
August 31, 2017November 27, 2017Net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period August 1, 2017 through August 31, 2017 per share
September 22, 2017November 27, 2017Net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period September 1, 2017 through September 30, 2017 per share
October 23, 2017December 28, 2017Net increase in net assets resulting from operations earned by us (if positive) as determined in accordance with GAAP for the period October 1, 2017 through October 31, 2017 per share

We issued capital calls to stockholders that were due on April 3, 2017 and May 1,July 31, 2017, which are summarized in the following table:
  Date Shares Issued NAV ($) per share Proceeds
        (In thousands)
Issuance of shares 04/03/2017 2,187,285.533 $15.00
 $32,809
Issuance of shares 05/01/2017 2,223,285.533 15.00
 33,349
  Date Shares Issued NAV ($) per share Proceeds
        (In thousands)
Issuance of shares 7/31/2017 2,223,285.533 $15.00
 $33,350



73


On May 11,August 8, 2017, GCIC Funding, LLC, or GCIC Funding, our wholly-owned subsidiary, entered into an amendment, or the Credit Facility Amendment, to the documents governing the senior secured revolving credit facility, as amended, entered into by GCIC Funding with Wells Fargo Bank, N.A., as administrative agent and lender, or the Credit Facility. The Credit Facility Amendment is effective as of May 11,August 8, 2017. The Credit Facility Amendment, among other things, (a) extended the expiration of the reinvestment period from May 12,August 10, 2017 to August 10,29, 2017, during which period GCIC Funding, subject to certain conditions, may make borrowings under the facility and (b) extended the stated maturity date to August 11,30, 2020. The size, interest rate and other material terms of the Credit Facility were unchanged.

Consolidated Results of Operations

Consolidated operating results for the three and sixnine months ended March 31,June 30, 2017 and 2016 are as follows:
For the three months ended March 31, Variances For the six months ended March 31, VariancesFor the three months ended June 30, Variances For the nine months ended June 30, Variances
2017 2016 2017 vs. 2016 2017 2016 2017 vs. 20162017 2016 2017 vs. 2016 2017 2016 2017 vs. 2016
(In thousands) (In thousands)(In thousands) (In thousands)
Interest income$19,824
 $10,309
 $9,515
 $39,183
 $19,803
 $19,380
$22,287
 $13,204
 $9,083
 $61,470
 $33,007
 $28,463
Income from accretion of discounts and origination fees989
 887
 102
 2,379
 1,403
 976
2,211
 652
 1,559
 4,590
 2,055
 2,535
Interest and dividend income from investments in GCIC SLF (1)
1,242
 730
 512
 2,395
 1,215
 1,180
1,216
 733
 483
 3,611
 1,948
 1,663
Dividend income
 17
 (17) 1
 17
 (16)157
 48
 109
 158
 65
 93
Fee income65
 359
 (294) 211
 375
 (164)827
 1
 826
 1,038
 376
 662
Total investment income22,120
 12,302
 9,818
 44,169
 22,813
 21,356
26,698
 14,638
 12,060
 70,867
 37,451
 33,416
Net expenses11,176
 5,616
 5,560
 22,421
 10,627
 11,794
12,451
 7,103
 5,348
 34,872
 17,730
 17,142
Net investment income10,944
 6,686
 4,258
 21,748
 12,186
 9,562
14,247
 7,535
 6,712
 35,995
 19,721
 16,274
Net realized gain (loss) on investments134
 48
 86
 331
 733
 (402)91
 (23) 114
 422
 710
 (288)
Net change in unrealized appreciation
(depreciation) on investments
1,616
 560
 1,056
 5,195
 1,033
 4,162
(128) 2,521
 (2,649) 5,067
 3,554
 1,513
Net increase in net assets resulting from operations$12,694
 $7,294
 $5,400
 $27,274
 $13,952
 $13,322
$14,210
 $10,033
 $4,177
 $41,484
 $23,985
 $17,499
Average earning debt investments, at fair value (2)
$1,067,235
 $585,497
 $481,738
 $1,041,217
 $561,206
 $480,011
$1,177,222
 $727,014
 $450,208
 $1,084,981
 $616,508
 $468,473
Average investment in subordinated notes
of GCIC SLF, at fair value

 34,820
 (34,820) 17,266
 29,126
 (11,860)
 34,567
 (34,567) 11,511
 31,049
 (19,538)
Average earning portfolio company investments, at fair value$1,067,235
 $620,317
 $446,918
 $1,058,483
 $590,332
 $468,151
$1,177,222
 $761,581
 $415,641
 $1,096,492
 $647,557
 $448,935
 
(1) 
The investments in GCIC SLF include our investments in both subordinated notes and LLC equity interests in GCIC SLF for the three and sixnine months ended March 31,June 30, 2016 and the sixnine months ended March 31,June 30, 2017.  For the three months ended March 31,June 30, 2017, the investments in GCIC SLF include our investment in LLC equity interests in GCIC SLF.
(2) 
Does not include our investment in LLC equity interests in GCIC SLF.

Net income can vary substantially from period to period for various reasons, including the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful.

As we have continued to raise and deploy capital, we have experienced significant growth in total assets, total liabilities and net assets from March 31,June 30, 2016 to March 31,June 30, 2017. As a result, quarterly comparisons of operating results may not be meaningful.



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Investment Income

Investment income increased from the three months ended March 31,June 30, 2016 to the three months ended March 31,June 30, 2017 by $9.8$12.1 million primarily as a result of an increase in the average earning debt investment


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balance, which is the average balance of accruing loans, excluding our investment in the subordinated notes of GCIC SLF, in our investment portfolio of $481.7 million.$450.2 million and increases in prepayment fee income and accretion of discounts resulting from increased debt investment payoffs.

Investment income increased from the sixnine months ended March 31,June 30, 2016 to the sixnine months ended March 31,June 30, 2017 by $21.4$33.4 million primarily as a result of an increase in the average earning debt investment balance of $480.0$468.5 million, increases in prepayment fee income and accretion of discounts resulting from increased debt investment payoffs and an increase of $1.0$1.7 million of interest and dividend income from our investments in GCIC SLF.

The annualized income yield by debt security type for the three and sixnine months ended March 31,June 30, 2017 and 2016 was as follows:
For the three months ended March 31, For the six months ended March 31,For the three months ended June 30, For the nine months ended June 30,
2017 2016 2017 20162017 2016 2017 2016
Senior secured6.3% 6.2% 6.3% 6.1%6.5% 6.4% 6.3% 6.2%
One stop7.7% 7.5% 7.8% 7.5%8.1% 7.4% 7.9% 7.4%
Subordinated debt (1)
19.8% N/A 19.8% N/A19.8% 19.8% 19.8% 19.8%
Subordinated notes in GCIC SLF (2)
N/A 8.4% 8.5% 8.3%N/A 8.5% 8.5% 8.4%
 
(1) 
Represents one portfolio company investment.
(2) 
GCIC SLF’s proceeds from the subordinated notes were utilized by GCIC SLF to invest in senior secured loans.
Annualized income yields on senior secured loans remained relatively stable for the three and sixnine months ended March 31,June 30, 2017 compared to the three and sixnine months ended March 31,June 30, 2016. Annualized income yields on one-stop loans have increased for the three and sixnine months ended March 31,June 30, 2017 compared to the three and sixnine months ended March 31,June 30, 2016 as the result of several larger transactions with attractive pricing originated during the second half of our 2016 fiscal year. As of March 31,June 30, 2017, we have one subordinated debt investment as shown in the consolidated schedule of investments.

For additional details on investment yields and asset mix, refer to the “Liquidity and Capital Resources - Portfolio Composition, Investment Activity and Yield” section below.



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Expenses

The following table summarizes our expenses:
 For the three months ended March 31, Variances For the six months ended March 31, Variances For the three months ended June 30, Variances For the nine months ended June 30, Variances
 2017 2016 2017 vs. 2016 2017 2016 2017 vs. 2016 2017 2016 2017 vs. 2016 2017 2016 2017 vs. 2016
 (In thousands) (In thousands) (In thousands) (In thousands)
Interest and other debt financing expenses $4,431
 $1,910
 $2,521
 $8,454
 3,646
 $4,808
 $5,103
 $2,430
 $2,673
 $13,557
 6,076
 $7,481
Amortization of debt issuance costs 882
 486
 396
 1,781
 964
 817
 741
 545
 196
 2,522
 1,509
 1,013
Base management fee, net of waiver 2,822
 1,559
 1,263
 5,583
 3,006
 2,577
 3,101
 1,943
 1,158
 8,684
 4,949
 3,735
Income Incentive Fee, net of waiver 1,830
 1,042
 788
 3,860
 1,705
 2,155
 2,523
 1,336
 1,187
 6,383
 3,041
 3,342
Capital gain incentive fee accrued under GAAP 392
 135
 257
 1,090
 274
 816
 58
 383
 (325) 1,148
 657
 491
Professional fees 480
 248
 232
 922
 573
 349
 502
 198
 304
 1,424
 771
 653
Administrative service fee 343
 232
 111
 705
 445
 260
 401
 216
 185
 1,106
 661
 445
General and administrative expenses (4) 4
 (8) 26
 14
 12
 22
 52
 (30) 48
 66
 (18)
Total expenses $11,176
 $5,616
 $5,560
 $22,421
 $10,627
 $11,794
 $12,451
 $7,103
 $5,348
 $34,872
 $17,730
 $17,142
Average debt outstanding $538,522
 $262,133
 $276,389
 $525,738
 $256,038
 $269,700
 $593,917
 $355,583
 $238,334
 $548,464
 $289,099
 $259,365

Interest

Interest and other debt financing expenses increased by $2.5$2.7 million from the three months ended March 31,June 30, 2016 to the three months ended March 31,June 30, 2017 primarily due to an increase in the weighted average of outstanding borrowings from $262.1$355.6 million for the three months ended March 31,June 30, 2016 to $538.5$593.9 million for the three months ended March 31,June 30, 2017 and an increase in the average London Interbank Offered Rate, or LIBOR, which is the index that determines the interest rate on our floating rate liabilities. The increase in our debt was driven by the issuance of $252.5 million of notes pursuant to the GCIC 2016 Debt Securitization as well as the use of our revolving credit facility, or SMBC Revolver, entered into on May 17, 2016 by GCIC with Sumitomo Mitsui Banking Corporation, or SMBC, as administrative agent, sole lead arranger and sole manager, which was outstanding for the entire three months ended June 30, 2017 and had an outstanding balance of $49.2$75.0 million as of March 31, 2017.each June 30, 2017 and 2016, respectively. These increases were partially offset by a decrease in our use of debt under the Credit Facility, entered into by GCIC Funding with Wells Fargo Securities, LLC, as administrative agent, and Wells Fargo Bank, N.A., as lender, to $270.2$303.4 million as of March 31,June 30, 2017 from an outstanding balance of $303.9$329.4 million as of March 31,June 30, 2016.

Interest and other debt financing expenses increased by $4.8 million from the six months ended March 31, 2016 to the six months ended March 31, 2017 primarily due to an increase in the weighted average of outstanding borrowings from $256.0 million for the six months ended March 31, 2016 to $525.7 million for the six months ended March 31, 2017. The effective annualized average interest rate on our outstanding debt increased to 3.9% for the six months ended March 31, 2017 from 3.6% for the six months ended March 31, 2016 primarily due to the increase in LIBOR.

Amortization of debt issuance costs increased by $0.4 million from the three months ended March 31, 2016 to the three months ended March 31, 2017 primarily due to additional capitalized debt issuance costs associated with the GCIC 2016 Debt Securitization. The effective annualized average interest rate on our outstanding debt increased to 4.0% for the three months ended March 31,June 30, 2017 from 3.7%3.4% for the three months ended March 31,June 30, 2016 primarily due to the increase in LIBOR.


Interest and other debt financing expenses increased by $7.5 million from the nine months ended June 30, 2016 to the nine months ended June 30, 2017 primarily due to an increase in the weighted average of outstanding borrowings from $289.1 million for the nine months ended June 30, 2016 to $548.5 million for the nine months ended June 30, 2017. The effective annualized average interest rate on our outstanding debt increased to 3.9% for the nine months ended June 30, 2017 from 3.5% for the nine months ended June 30, 2016 primarily due to the increase in LIBOR.


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Management Fees

The base management fee increased as a result of a sequential increase in average assets from March 31,June 30, 2016 to March 31,June 30, 2017.



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Incentive Fees

The incentive fee payable under the Investment Advisory Agreement consists of two parts: (1) the income component, or the Income Incentive Fee, and (2) the capital gains component, or the Capital Gain Incentive Fee. The Income Incentive Fee increased by $0.8$1.2 million and $2.2$3.3 million, respectively, from the three and sixnine months ended March 31,June 30, 2016 to the three and sixnine months ended March 31,June 30, 2017 primarily as a result of the $481.7$450.2 million and $480.0$468.5 million increases in our average earning debt investment balances that resulted in an increase in our Pre-Incentive Fee Net Investment Income (as defined below). For the three months ended March 31,June 30, 2017, we were fully through the catch-up provision of the Income Incentive Fee calculation and the Income Incentive Fee earned by GC Advisors as a percentage of Pre-Incentive Fee Net Investment Income increased to 15.0% compared to 14.4% for the three months ended June 30, 2016. For the nine months ended June 30, 2017, while still not fully through the catch-up provision of the Income Incentive Fee calculation, the Income Incentive Fee as a percentage of Pre-Incentive Fee Net Investment Income increased to 13.9%14.7% compared to 13.2%13.0% for the threenine months ended March 31, 2016. For the six months ended March 31, 2017, while still not fully through the catch-up provision of the Income Incentive Fee calculation, the Income Incentive Fee as a percentage of Pre-Incentive Fee Net Investment Income increased to 14.5% compared to 12.0% for the six months ended March 31,June 30, 2016. "Pre-Incentive Fee Net Investment Income" means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that we receive from portfolio companies, but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the calendar quarter (including the base management fee, taxes, any expenses payable under the Investment Advisory Agreement and the Administration Agreement, any expenses of securitizations and any interest expense and dividends paid on any outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature such as market discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities, accrued income that we have not yet received in cash.

The Capital Gain Incentive Fee payable as calculated under the Investment Advisory Agreement for each of the three and sixnine months ended March 31,June 30, 2017 and 2016 was $0. However, in accordance with GAAP, we are required to include the aggregate unrealized capital appreciation on investments in the calculation and accrue a capital gain incentive fee as if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the Investment Advisory Agreement.

We recorded an accrual for capital gain incentive fee under GAAP of $0.4 million,$58,000, or less than $0.01 per share, and $1.1 million, or $0.03 per share, for the three and sixnine months ended March 31,June 30, 2017, respectively. We recorded an accrual for capital gain incentive fee under GAAP of $0.1$0.4 million, or less than $0.01 per share, and $0.3$0.7 million, or $0.01$0.02 per share, for the three and sixnine months ended March 31,June 30, 2016, respectively. The decrease in the accrual for capital gain incentive fee under GAAP for the three months ended June 30, 2017 from the three months ended June 30, 2016 was primarily the result of a $2.6 million decrease in unrealized appreciation on portfolio company investments. The increase in the accrual for capital gain incentive fee under GAAP for the three and sixnine months ended March 31,June 30, 2017 from the three and sixnine months ended March 31,June 30, 2016 was primarily the result of increaseda $1.5 million increase in unrealized appreciation on portfolio company investments and realized gains on the sale of debt investments. Forinvestments.For additional details on unrealized appreciation and depreciation of investments, refer to the “Net Realized and Unrealized Gains and Losses” see section below.



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Professional Fees, Administrative Service Fees, and General and Administrative Expenses

In total, professional fees, the administrative service fee, and general and administrative expenses increased by $0.3$0.5 million from the three months ended March 31,June 30, 2016 to the three months ended March 31,June 30, 2017 and increased by $0.6$1.1 million from the sixnine months ended March 31,June 30, 2016 to sixnine months ended March 31,June 30, 2017. These increases are associated with increased costs to service a growing portfolio. In general, we expect certain of our operating expenses, including professional fees, the administrative service fee, and other general and administrative expenses to decline as a percentage of our total assets during periods of growth and increase as a percentage of our total assets during periods of asset declines.

The Administrator pays for certain expenses incurred by us. These expenses are subsequently reimbursed in cash. Total expenses reimbursed by us to the Administrator for the three and sixnine months ended March 31,June 30, 2017 were $0.5$0.2 million and $0.8$1.0 million, respectively. Total expenses reimbursed by us to the Administrator for the three and sixnine months ended March 31,June 30, 2016 were $0.4an amount less than $0.1 million and $0.5 million, respectively.

As of March 31,June 30, 2017 and September 30, 2016, included in accounts payable and accrued expenses were $0.2 million and $0.3 million, respectively, for accrued expenses paid on behalf of us by the Administrator.

Net Realized and Unrealized Gains and Losses

The following table summarizes our net realized and unrealized gains (losses) for the periods presented:
For the three months ended March 31, Variances For the six months ended March 31, VariancesFor the three months ended June 30, Variances For the nine months ended June 30, Variances
2017 2016 2017 vs. 2016 2017 2016 2017 vs. 20162017 2016 2017 vs. 2016 2017 2016 2017 vs. 2016
(In thousands) (In thousands)(In thousands) (In thousands)
Net realized gain (loss) on investments$134
 $48
 $86
 $331
 $733
 $(402)$91
 $(23) $114
 $422
 $710
 $(288)
Net realized gain (loss)134
 48
 86
 331
 733
 (402)91
 (23) 114
 422
 710
 (288)
Unrealized appreciation on investments4,483
 2,836
 1,647
 8,582
 4,614
 3,968
5,484
 5,507
 (23) 11,315
 8,074
 3,241
Unrealized (depreciation) on investments(2,968) (2,548) (420) (3,689) (3,810) 121
(5,472) (3,534) (1,938) (6,410) (5,297) (1,113)
Unrealized appreciation on investments in GCIC SLF(1)
101
 621
 (520) 302
 578
 (276)
 548
 (548) 162
 1,126
 (964)
Unrealized (depreciation) on investments in GCIC SLF(2)

 (349) 349
   (349) 349
Unrealized (depreciation) on investments in GCIC SLF(1)(2)
(140) 
 (140)   (349) 349
Net change in unrealized appreciation (depreciation) on
investments, investments in GCIC SLF
$1,616
 $560
 $1,056
 $5,195
 $1,033
 $4,162
$(128) $2,521
 $(2,649) $5,067
 $3,554
 $1,513
 
(1) 
Unrealized appreciation on investments in GCIC SLF includes our investment in LLC equity interests in GCIC SLF.
(2) 
Unrealized (depreciation) on investments in GCIC SLF for the nine months ended June 30, 2016 includes our investment in subordinated notes in GCIC SLF.
For the three months ended March 31,June 30, 2017, we had a net realized gain of $0.1 million primarily due to the sale of one equity investment that was partially offset by the realized loss on the sale of a debt and equity investment in a single portfolio company investments to GCIC SLF.company. For the sixnine months ended March 31,June 30, 2017, we had a net realized gain of $0.3$0.4 million primarily due to the sale of portfolio company investments to GCIC SLF.SLF and the sale of one equity investment, which were partially offset by the realized loss on the sale of a debt and equity investment in a single portfolio company.

For the three months ended March 31,June 30, 2017, we had $4.5$5.5 million in unrealized appreciation on 8087 portfolio company investments, which was partially offset by $3.0$5.5 million in unrealized depreciation on 123131 portfolio company investments. For the six months ended March 31, 2017, we had $8.6 million in unrealized appreciation on 105 portfolio company investments, which was partially offset by $3.7 million


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investments. For the nine months ended June 30, 2017, we had $11.3 million in unrealized appreciation on 122 portfolio company investments, which was partially offset by $6.4 million in unrealized depreciation on 112114 portfolio company investments. Unrealized appreciation during the three and sixnine months ended March 31,June 30, 2017 resulted from an increase in fair value primarily due to the rise in market prices of portfolio company investments. Unrealized depreciation primarily resulted from the amortization of discounts, negative credit related adjustments that caused a reduction in fair value and the reversal of the net unrealized appreciation associated with the sales of portfolio company investments during the three and sixnine months ended March 31,June 30, 2017.

For the three months ended March 31,June 30, 2017, we had $0.1 million in unrealized appreciationdepreciation on our investment in GCIC SLF LLC equity interests, which was primarily driven by net positivenegative credit related adjustments associated with GCIC SLF's investment portfolio. For the sixnine months ended March 31,June 30, 2017, we had $0.3$0.2 million in unrealized appreciation on our investment in GCIC SLF LLC equity interests, which was driven by net positive credit related adjustments associated with GCIC SLF's investment portfolio.

For the three months ended March 31,June 30, 2016, we had net realized gainslosses in an amount less than $0.1 million primarily due to the realized loss on the sale of one non-accrual portfolio company investment that was partially offset by the sale of portfolio company investments to GCIC SLF. For the sixnine months ended March 31,June 30, 2016, we had net realized gains of $0.7 million primarily due to the sale of portfolio company investments to GCIC SLF.

During the three months ended March 31,June 30, 2016, we had $2.8$5.5 million in unrealized appreciation on 6387 portfolio company investments, which was partially offset by $2.5$3.5 million in unrealized depreciation on 8896 portfolio company investments. For the sixnine months ended March 31,June 30, 2016, we had $4.6$8.1 million in unrealized appreciation on 78104 portfolio company investments, which was partially offset by $3.8$5.3 million in unrealized depreciation on 8587 portfolio company investments. Unrealized depreciation primarily resulted from the amortization of discounts and negative credit related adjustments that caused a reduction in fair value. Unrealized appreciation during the three and sixnine months ended March 31,June 30, 2016 resulted from an increase in fair value primarily due to the rise in market prices of portfolio company investments.

For the three and six months ended March 31,June 30, 2016 we had $0.6$0.5 million in unrealized appreciation on our investment in GCIC SLF equity interests, which was driven by positive credit related adjustments associated with GCIC SLF’s investment portfolio. For the nine months ended June 30, 2016, we had $1.1 million in unrealized appreciation on our investment in GCIC SLF LLC equity interests which was partially offset by $0.3 million in unrealized depreciation on our investment in GCIC SLF subordinated notes. The unrealized depreciation was the result of the lower yielding contractual rate compared to comparable market pricing of subordinated notes. The unrealized appreciation on the GCIC SLF LLC equity interests was driven by the offsetting impact of the pricing on the subordinated notes.notes and positive credit related adjustments associated with GCIC SLF’s investment portfolio.


Liquidity and Capital Resources

For the sixnine months ended March 31,June 30, 2017, we experienced a net increase in cash and cash equivalents of $10.5$0.5 million. During the period we used $67.2$186.9 million in operating activities, primarily as a result of fundings of portfolio investments of $185.1$432.3 million, partially offset by proceeds from principal payments and sales of portfolio investments of $96.8$208.9 million and net investment income of $21.7$36.0 million. During the same period, cash provided by investment activities of $33.4$28.6 million was driven by a decrease in restricte


79


d cash and cash equivalents. Lastly, cash provided by financing activities was $158.9 million, primarily driven by borrowings on debt of $397.9 million and proceeds from the issuance of common shares of $66.2 million that were partially offset by repayments of debt of $287.7 million and distributions paid of $17.2 million.

For the nine months ended June 30, 2016, we experienced a net increase in cash and cash equivalents of $2.1 million. During the period we used $332.5 million in operating activities, primarily as a result of fundings of portfolio investments of $588.5 million. This was partially offset by proceeds from principal payments and sales of portfolio investments of $236.3 million and net investment income of $24.0 million. During the same period, cash provided by investment activities of $0.3 million was driven by the decrease in restricted cash and cash equivalents. Lastly, cash provided by financing activities was $44.3$334.3 million, primarily driven by borrowings on debt of $187.8$627.4 million and proceeds from issuance of common shares of $188.9 million that were partially offset by repayments of debt of $136.5$472.7 million and distributions paid of $13.0 million.

For the six months ended March 31, 2016, we experienced a net increase in cash and cash equivalents of less than $0.1 million. During the period we used $139.3 million in operating activities, primarily as a result of fundings of portfolio investments of $334.0 million. This was partially offset by proceeds from


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principal payments and sales of portfolio investments of $189.1 million and net investment income of $14.0 million. During the same period, cash provided by investment activities of $3.0 million was driven by the decrease in restricted cash and cash equivalents. Lastly, cash provided by financing activities was $136.4 million, primarily driven by borrowings on debt of $324.3 million and proceeds from issuance of common shares of $88.4 million that were partially offset by repayments of debt of $270.1 million and distributions paid of $6.1$8.5 million.

As of March 31,June 30, 2017 and September 30, 2016, we had cash and cash equivalents of $15.2$5.2 million and $4.7 million, respectively. In addition, we had restricted cash and cash equivalents of $37.6$42.5 million and $71.1 million as of March 31,June 30, 2017 and September 30, 2016, respectively. Cash and cash equivalents are available to fund new investments, pay operating expenses and pay distributions. As of March 31,June 30, 2017, $10.6$23.9 million of our restricted cash and cash equivalents could be used to fund new investments that meet the investment guidelines established in the GCIC 2016 Debt Securitization, which is described in further detail in Note 8 to our consolidated financial statements, and for the payment of interest expense on the notes issued in the GCIC 2016 Debt Securitization. $27.0As of June 30, 2017, $18.6 million of suchour restricted cash and cash equivalents could be used to fund investments that meet the guidelines under the Credit Facility as well as for the payment of interest expense and revolving debt of the Credit Facility.

As of March 31,June 30, 2017, the Credit Facility allowed GCIC Funding to borrow up to $420.0 million at any one time outstanding, subject to leverage and borrowing base restrictions. As of March 31,June 30, 2017 and September 30, 2016, we had $303.4 million and $193.1 million outstanding under the Credit Facility, respectively. As of June 30, 2017 and September 30, 2016, subject to leverage and borrowing base restrictions, we had approximately $149.8$116.6 million and $226.9 million, respectively, of remaining commitments and $52.0$76.6 million and $109.7 million, respectively, of availability on the Credit Facility. As of March 31, 2017 and September 30, 2016, we had $270.2 million and $193.1 million outstanding under the Credit Facility, respectively.

As of March 31,June 30, 2017, the SMBC Revolver allowed us to borrow up to $75.0 million at any one time outstanding, subject to leverage and borrowing base restrictions. As of March 31,each of June 30, 2017 and September 30, 2016, we had $75.0 million outstanding under the SMBC Revolver. As of each of June 30, 2017 and September 30, 2016, subject to leverage and borrowing base restrictions, we had approximately $25.8 million and $0 million respectively, of remaining commitments and $0 million of availability under the SMBC Revolver. As of March 31, 2017 and September 30, 2016, we had $49.2 million and $75.0 million outstanding under the SMBC Revolver, respectively.

As of March 31,June 30, 2017, we were permitted to borrow up to $40.0 million at any one time outstanding, under the terms of our unsecured revolving credit facility, or Revolver, with GC Advisors. We entered into the Revolver in order to have the ability to borrow funds on a short-term basis and have in the past, and generally intend in the future, that borrowings under the Revolver will be repaid within the same quarter in which they are drawn. As of March 31,each of June 30, 2017 and September 30, 2016, we had no amounts outstanding under the Revolver.

On August 16, 2016, we completed the GCIC 2016 Debt Securitization in which the GCIC 2016 Issuer issued an aggregate of $410.1 million of notes, or the GCIC 2016 Notes, including $220.0 million of Class A GCIC 2016 Notes, which bear interest at a rate of three-month LIBOR plus 2.15%, $32.5 million


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of Class B GCIC 2016 Notes, which bear interest at a rate of three-month LIBOR plus 3.00%, $42.3 million of Class C GCIC 2016 Notes, which bear interest at a rate of three-month LIBOR plus 3.10%, and $28.6 million of Class D GCIC 2016 Notes, which bear interest at a rate of three-month LIBOR plus 3.25%, and $86.7 million of LLC equity interests in the GCIC 2016 Issuer that do not bear interest. We retained all of the Class C GCIC 2016 Notes, Class D GCIC 2016 Notes and LLC equity interests in the GCIC 2016 Issuer totaling $42.3 million, $28.6 million and $86.7 million, respectively. The Class A and Class B GCIC 2016 Notes are included in the March 31,June 30, 2017 and September 30, 2016 consolidated


80


statements of financial condition as our debt and the Class C GCIC 2016 Notes, Class D GCIC 2016 Notes and LLC equity interests in the GCIC 2016 issuer were eliminated in consolidation. As of March 31,June 30, 2017 and September 30, 2016, we had outstanding debt under the GCIC 2016 Debt Securitization of $252.5 million.

As of March 31,June 30, 2017 and September 30, 2016, we had investor capital subscriptions totaling $1,301.6 million and $942.9 million, respectively, of which $594.3$660.4 million and $594.3 million, respectively, had been called and contributed, leaving $707.3$641.2 million and $348.6 million of uncalled investor capital subscriptions, respectively. Prior to the completion of a public offering or other liquidity event, we expect to target a leverage ratio of between 0.85x to 0.90x and may issue capital calls to shareholdersstock holders as our leverage ratio is at or approaching its target.

In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to borrow amounts such that our asset coverage, as defined in the 1940 Act, is at least 200% after such borrowing. As of March 31,June 30, 2017, our asset coverage for borrowed amounts was 210.1%211.0%.

As of March 31,June 30, 2017 and September 30, 2016,, we had outstanding commitments to fund investments, excluding our investment in GCIC SLF, totaling $54.2$127.0 million and $42.7 million, respectively. These amounts may or may not be funded to the borrowing party now or in the future. The unfunded commitments relate to loans with various maturity dates, but the entire amount was eligible for funding to the borrowers as of March 31,June 30, 2017 and September 30, 2016, respectively, subject to the terms of each loan’s respective credit agreement. As of March 31,June 30, 2017, we believe that we had sufficient assets and liquidity to adequately cover future obligations under our unfunded commitments based on historical rates of drawings upon unfunded commitments, cash and restricted cash balances that we maintain, availability under our Credit Facility, SMBC Revolver and SMBC Revolver, ongoing principal repayments on debt investments assets and uncalled investor capital subscriptions.

Although we expect to fund the growth of our investment portfolio through net proceeds from capital calls on existing and future investor capital subscriptions and through our dividend reinvestment plan as well as future borrowings, to the extent permitted by the 1940 Act, we cannot assure you that our efforts to raise capital will be successful. In addition to capital not being available, it also may not be available on favorable terms. To the extent we are not able to raise capital on what we believe are favorable terms, we will focus on optimizing returns by investing in capital generated by repayments into new investments we believe are attractive from a risk/reward perspective. Furthermore, to the extent we are not able to raise capital and are at or near our targeted leverage ratios, we may receive smaller allocations, if any, on new investment opportunities under GC Advisors’ allocation policy.

Portfolio Composition, Investment Activity and Yield

As of March 31,June 30, 2017 and September 30, 2016 we had investments in 162165 and 158 portfolio companies, respectively, with a total fair value of $1,114.9$1,255.8 million and $1,021.8 million, respectively. As of March 31, 2017June 30, 2


81


017 and September 30, 2016, we had investments in GCIC SLF with a total fair value of $52.4$48.1 million and $48.0 million, respectively.



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The following table shows the asset mix of our new investment commitments for the three and sixnine months ended March 31,June 30, 2017 and 2016:
For the three months ended March 31, For the six months ended March 31,For the three months ended June 30, For the nine months ended June 30, 
2017 2016 2017 20162017 2016 2017 2016 
(In thousands) 
Percentage of
Commitments
 (In thousands) Percentage of
Commitments
 (In thousands) 
Percentage of
Commitments
 (In thousands) 
Percentage of
Commitments
(In thousands) 
Percentage of
Commitments
 (In thousands) Percentage of
Commitments
 (In thousands) 
Percentage of
Commitments
 (In thousands) 
Percentage of
Commitments
 
Senior secured$48,697
 48.1% $35,395
 17.6% $65,687
 32.2% $70,387
 20.0%$35,235
 10.7% $35,136
 12.9% $100,922
 18.9% $105,523
 16.9% 
One stop51,222
 50.6
 161,927
 80.4
 128,092
 62.8
 235,960
 67.0
291,173
 88.6
 229,468
 84.2
 419,265
 78.7
 465,428
 74.5
 
Subordinated debt
 
 
 
 11
 0.0
* 

 

 
 39
 0.0
* 
11
 0.0
* 
39
 0.0
* 
Subordinated notes in GCIC SLF(1)

 
 1,254
 0.6
 
 
 34,917
 9.9

 
 
 
 
 
 34,917
 5.6
 
LLC equity interests in GCIC SLF(1)

 
 2,211
 1.1
 8,803
 4.3
 9,344
 2.6

 
 2,914
 1.1
 8,803
 1.7
 12,258
 1.9
 
Equity1,250
 1.3
 547
 0.3
 1,407
 0.7
 1,684
 0.5
2,448
 0.7
 4,915
 1.8
 3,855
 0.7
 6,599
 1.1
 
Total new investment commitments$101,169
 100.0% $201,334
 100.0% $204,000
 100.0% $352,292
 100.0%$328,856
 100.0% $272,472
 100.0% $532,856
 100.0% $624,764
 100.0% 
 
* Represents an amount less than 0.1%.
(1) 
GCIC SLF’s proceeds from the subordinated notes and LLC equity interests were utilized by GCIC SLF to invest in senior secured loans. As of March 31,June 30, 2017, GCIC SLF had investments in senior secured loans to 4337 different borrowers.

For the three and sixnine months ended March 31,June 30, 2017, we had approximately $18.3$109.1 million and $60.8$169.9 million, respectively, in proceeds from principal payments and return of capital distributions of portfolio companies, excluding $34.9 million of proceeds from the repayment in full and termination of our investment in subordinated notes of GCIC SLF. For the three and sixnine months ended March 31,June 30, 2017, we had sales of securities in 75 and 1520 portfolio companies, respectively, aggregating approximately $13.2$3.0 million and $36.0$39.0 million, respectively, in net proceeds.

For the three and sixnine months ended March 31,June 30, 2016, we had approximately $31.3$19.4 million and $61.8$81.2 million, respectively, in proceeds from principal payments and return of capital distributions of portfolio companies. For the three and sixnine months ended March 31,June 30, 2016, we had sales ofin securities in 117 and 3340 portfolio companies, respectively, aggregating approximately $44.1$27.9 million and $127.2$155.1 million, respectively in net proceeds.




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The following table shows the par, amortized cost and fair value of our portfolio of investments by asset class:
As of March 31, 2017 (1)
 
As of September 30, 2016 (1)
As of June 30, 2017 (1)
 
As of September 30, 2016 (1)
Par 
Amortized
Cost
 
Fair
Value
 Par 
Amortized
Cost
 
Fair
Value
Par 
Amortized
Cost
 
Fair
Value
 Par 
Amortized
Cost
 
Fair
Value
(In thousands) (In thousands)(In thousands) (In thousands)
Senior secured:  
   
   
   
   
   
  
   
   
   
   
   
Performing$148,619
 $146,676
 $147,329
 $113,576
 $112,122
 $112,994
$156,762
 $154,820
 $155,290
 $113,576
 $112,122
 $112,994
Non-accrual (2)

 
 
 
 
 

 
 
 
 
 
One stop:  
   
   
   
   
   
  
   
   
   
   
   
Performing954,636
 941,378
 950,467
 902,025
 888,864
 894,633
1,087,124
 1,071,318
 1,080,931
 902,025
 888,864
 894,633
Non-accrual (2)
53
 28
 16
 53
 28
 16
1,100
 1,076
 420
 53
 28
 16
Subordinated debt:  
   
   
   
   
   
  
   
   
   
   
   
Performing53
 53
 53
 40
 40
 40
54
 54
 54
 40
 40
 40
Non-accrual (2)

 
 
 
 
 

 
 
 
 
 
Subordinated notes in GCIC SLF (3)(4)
  
   
   
   
   
   
  
   
   
   
   
   
Performing
 
 
 34,917
 34,917
 34,917

 
 
 34,917
 34,917
 34,917
Non-accrual (2)

 
 
 
 
 

 
 
 
 
 
LLC equity interests in GCIC SLF (3)(4)
N/A
 51,340
 52,423
 N/A
 12,258
 13,039
N/A
 47,175
 48,118
 N/A
 12,258
 13,039
EquityN/A
 14,321
 17,037
 N/A
 13,147
 14,071
N/A
 16,117
 19,147
 N/A
 13,147
 14,071
Total$1,103,361
 $1,153,796
 $1,167,325
 $1,050,611
 $1,061,376
 $1,069,710
$1,245,040
 $1,290,560
 $1,303,960
 $1,050,611
 $1,061,376
 $1,069,710
 
(1) 
1615 and 12 of our loans included a feature permitting a portion of the interest due on such loan to be PIK interest as of March 31,June 30, 2017 and September 30, 2016, respectively.
(2) 
We refer to a loan as non-accrual when we cease recognizing interest income on the loan because we have stopped pursuing repayment of the loan or, in certain circumstances, it is past due 90 days or more on principal and interest or our management has reasonable doubt that principal or interest will be collected. See “— Critical Accounting Policies — Revenue Recognition.”
(3) 
On December 30, 2016, GCIC SLF issued a capital call in an aggregate amount of $39.9 million the proceeds of which were used to redeem in full the outstanding balance on the subordinated notes previously issued by GCIC SLF and terminate all remaining subordinated note commitments.
(4) 
GCIC SLF's proceeds from the subordinated notes and LLC equity interest in GCIC SLF were utilized by GCIC SLF to invest in senior secured loans.
As of March 31,June 30, 2017 and September 30, 2016, the fair value of our debt investments as a percentage of the outstanding par value was 99.5%99.3% and 99.2%, respectively.



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The following table shows the weighted average rate, spread over LIBOR of floating rate and fees of investments originated and the weighted average rate of sales and payoffs of portfolio companies during the three and sixnine months ended March 31,June 30, 2017 and 2016:
For the three months ended March 31, For the six months ended March 31,For the three months ended June 30, For the nine months ended June 30,
2017 2016 2017 20162017 2016 2017 2016
Weighted average rate of new investment fundings(1)
6.6% 7.0% 6.8% 6.8%7.4% 7.7% 7.2% 7.2%
Weighted average spread over LIBOR of new floating rate investment fundings(1)
5.6% 6.0% 5.8% 5.8%6.2% 6.7% 6.0% 6.2%
Weighted average rate of new fixed rate investment fundings7.5% 10.6% 7.5% 10.6%
Weighted average fees of new investment fundings1.3% 1.9% 1.5% 1.7%1.4% 1.7% 1.4% 1.7%
Weighted average rate of sales and payoffs of portfolio investments(1)
6.7% 6.6% 6.5% 6.3%7.7% 6.1% 7.2% 6.2%
Weighted average annualized income yield (2)(3)
7.6% 7.4% 7.6% 7.3%7.9% 7.4% 7.7% 7.3%
 
(1) 
Excludes subordinated note investmentsinvestment in GCIC SLF.
(2) 
Represents income from interest, including subordinated note investment in GCIC SLF, and fees excluding amortization of capitalized fees and discounts divided by the average fair value of earning debt investments and does not represent a return to any investor in us.
(3) 
For the three months ending March 31,June 30, 2017, weighted average annualized income yield does not reflect interest income from subordinated notes in GCIC SLF, which were redeemed on December 30, 2016.
As of March 31,June 30, 2017, 99.8%99.1% and 99.8%99.1% of our debt portfolio at fair value and at amortized cost, respectively, had interest rate floors that limit the minimum applicable interest rates on such loans. As of September 30, 2016, 96.4% and 96.4% of our debt portfolio, including our investment in GCIC SLF subordinated notes which were not subject to an interest rate floor, at fair value and at amortized cost, respectively, had interest rate floors that limit the minimum applicable interest rates on such loans.
As of March 31,June 30, 2017, the portfolio median earnings before interest, taxes, depreciation and amortization, or EBITDA, for our portfolio companies (excluding GCIC SLF and its underlying borrowers) was $27.0$26.8 million. The portfolio median EBITDA is based on the most recently reported trailing twelve-month EBITDA received from the portfolio company.



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As part of the monitoring process, GC Advisors regularly assesses the risk profile of each of our investments and rates each of them based on an internal system developed by Golub Capital and its affiliates. This system is not generally accepted in our industry or used by our competitors. It is based on the following categories, which we refer to as GC Advisors’ internal performance ratings:
   
Internal Performance Ratings
Rating Definition
5 Involves the least amount of risk in our portfolio. The borrower is performing above expectations, and the trends and risk factors are generally favorable.
4 Involves an acceptable level of risk that is similar to the risk at the time of origination. The borrower is generally performing as expected, and the risk factors are neutral to favorable.
3 Involves a borrower performing below expectations and indicates that the loan’s risk has increased somewhat since origination. The borrower may be out of compliance with debt covenants; however, loan payments are generally not past due.
2 Involves a borrower performing materially below expectations and indicates that the loan’s risk has increased materially since origination. In addition to the borrower being generally out of compliance with debt covenants, loan payments may be past due (but generally not more than 180 days past due).
1 Involves a borrower performing substantially below expectations and indicates that the loan’s risk has substantially increased since origination. Most or all of the debt covenants are out of compliance and payments are substantially delinquent. Loans rated 1 are not anticipated to be repaid in full and we will reduce the fair market value of the loan to the amount we anticipate will be recovered.

Our internal performance ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments.

For any investment rated 1, 2 or 3, GC Advisors will increase its monitoring intensity and prepare regular updates for the investment committee, summarizing current operating results and material impending events and suggesting recommended actions.

GC Advisors monitors and, when appropriate, changes the internal performance ratings assigned to each investment in our portfolio. In connection with our valuation process, GC Advisors and our board of directors review these internal performance ratings on a quarterly basis.



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The following table shows the distribution of our investments on the 1 to 5 internal performance rating scale at fair value as of March 31,June 30, 2017 and September 30, 2016:
 March 31, 2017 September 30, 2016 June 30, 2017 September 30, 2016
Internal
Performance
Rating
 
Investments
at Fair Value
(In thousands)
 
Percentage of
Total
Investments
 
Investments
at Fair Value
(In thousands)
 
Percentage of
Total
Investments
  
Investments
at Fair Value
(In thousands)
 
Percentage of
Total
Investments
 
Investments
at Fair Value
(In thousands)
 
Percentage of
Total
Investments
 
5 $103,685
 8.9
 $5,889
 0.6
 $33,641
 2.6 $5,889
 0.6
4 980,757
 84.0
 995,410
 93.0
  1,187,982
 91.1 995,410
 93.0
 
3 81,886
 7.0
 64,783
 6.1
  81,769
 6.3 64,783
 6.1
 
2 997
 0.1
 3,628
 0.3
  157
 0.0
* 
 3,628
 0.3
 
1 
 
 
 
  411
 0.0
* 
 
 
 
Total $1,167,325
 100.0
 $1,069,710
 100.0
 $1,303,960
 100.0 $1,069,710
 100.0
* Represents an amount less than 0.1%.

GCIC Senior Loan Fund LLC:

We co-invest with Aurora National Life Assurance Company, a wholly-owned subsidiary of RGA Reinsurance Company, or Aurora, in senior secured loans through GCIC SLF, an unconsolidated Delaware LLC. GCIC SLF is capitalized as transactions are completed and all portfolio and investment decisions in respect of GCIC SLF must be approved by the GCIC SLF investment committee consisting of two representatives of each of us and Aurora (with unanimous approval required from (i) one representative of each of us and Aurora or (ii) both representatives of each of us and Aurora). GCIC SLF may cease making new investments upon notification of either member but operations will continue until all investments have been sold or paid-off in the normal course of business.

As of March 31,June 30, 2017, GCIC SLF is capitalized from LLC equity interest subscriptions from its members. On December 14, 2016, the GCIC SLF investment committee approved the recapitalization of the commitments of GCIC SLF’s members. On December 30, 2016, GCIC SLF’s members entered into additional LLC equity interest subscriptions totaling $100.0 million, GCIC SLF issued capital calls totaling $39.9 million to us and Aurora and the subordinated notes previously issued by GCIC SLF were redeemed and terminated. As of March 31,June 30, 2017 and September 30, 2016, we and Aurora owned 87.5% and 12.5%, respectively, of the LLC equity interests. GCIC SLF’s profits and losses are allocated to us and Aurora in accordance with our respective ownership interests. As of September 30, 2016, we and Aurora owned 87.5% and 12.5%, respectively, of the outstanding subordinated notes issued by GCIC SLF.


86


As of March 31,June 30, 2017 and September 30, 2016, GCIC SLF had the following commitments from its members:
As of March 31, 2017 As of September 30, 2016As of June 30, 2017 As of September 30, 2016
Committed 
Funded(1)
 Committed FundedCommitted 
Funded(1)
 Committed Funded
(Dollars in thousands)(Dollars in thousands)
Subordinated note commitments (2)(3)
$
 $
 $100,000
 $39,905
$
 $
 $100,000
 $39,905
LLC equity commitments (3)
125,000
 58,674
 25,000
 14,009
125,000
 53,914
 25,000
 14,009
Total$125,000
 $58,674
 $125,000
 $53,914
$125,000
 $53,914
 $125,000
 $53,914
 
(1) 
Funded LLC equity commitments are presented net of return of capital distributions subject to recall.
(2) 
The subordinated note commitments were terminated as of December 30, 2016.
(3) 
Commitments presented are combined for us and Aurora.
On October 21, 2015, GCIC Senior Loan Fund II LLC, or GCIC SLF II, a wholly-owned subsidiary of GCIC SLF, entered into a senior secured revolving credit facility, or the GCIC SLF Credit Facility, with Wells Fargo Bank, N.A., which allowed GCIC SLF II to borrow up to $150 million at any one time outstanding, subject to leverage and borrowing base restrictions. The reinvestment period of the GCIC SLF Credit Facility ends October 22, 2017, and the stated maturity date is October 21, 2020. As of March 31,June 30, 2017 and September 30, 2016, GCIC SLF II had outstanding debt under the GCIC SLF Credit Facility of $102.0$90.5 million and $95.5 million, respectively.

Through the reinvestment period, the GCIC SLF Credit Facility bears interest at one-month LIBOR plus a rate between 1.75% and 2.25%, per annum, depending on the composition of the collateral asset portfolio, per annum.portfolio. After the reinvestment period, the rate will reset to one-month LIBOR plus 2.75% per annum for the remaining term of the GCIC SLF Credit Facility.

As of March 31,June 30, 2017 and September 30, 2016, GCIC SLF had total assets at fair value of $161.2$146.1 million and $149.5 million, respectively. As of March 31,June 30, 2017 and September 30, 2016, GCIC SLF did not have any investments on non-accrual status. The portfolio companies in GCIC SLF are in industries similar to those in which we may invest directly. Additionally, as of March 31,June 30, 2017 and September 30, 2016, GCIC SLF had commitments to fund various undrawn revolvers and delayed draw investments to its portfolio companies totaling $7.2$6.2 million and $10.7 million, respectively.


87



Below is a summary of GCIC SLF’s portfolio, followed by a listing of the individual investments in GCIC SLF’s portfolio as of March 31,June 30, 2017 and September 30, 2016:
As of March 31, 2017 As of September 30, 2016As of June 30, 2017 As of September 30, 2016
(Dollars in thousands)(Dollars in thousands)
Senior secured loans (1)
$158,273
 $146,481
$143,363
 $146,481
Weighted average current interest rate on senior secured loans (2)
6.2% 6.0%6.4% 6.0%
Number of borrowers in GCIC SLF43
 41
37
 41
Largest portfolio company investments (1)
$8,973
 $8,346
$8,950
 $8,346
Total of five largest portfolio company investments (1)
$40,543
 $39,053
$40,099
 $39,053
 
(1) 
At principal amount.
(2) 
Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at principal amount.
GCIC SLF Investment Portfolio as of March 31, 2017
GCIC SLF Investment Portfolio as of June 30, 2017GCIC SLF Investment Portfolio as of June 30, 2017
Portfolio Company Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
 Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
   (In thousands) (In thousands)
1A Smart Start LLC Home and Office Furnishings, Housewares, and Durable Consumer Senior loan 02/2022 5.9 $1,358
 $1,357
 Home and Office Furnishings, Housewares, and Durable Consumer Senior loan 02/2022 6.0 $1,355
 $1,356
Accellos, Inc. (3)
 Diversified/Conglomerate Service Senior loan 07/2020 6.9  6,252
 6,252
 Diversified/Conglomerate Service Senior loan 07/2020 7.0  6,698
 6,698
Aimbridge Hospitality, LLC (3)
 Hotels, Motels, Inns, and Gaming Senior loan 10/2018 5.8  2,406
 2,406
American Seafoods Group LLC Beverage, Food and Tobacco Senior loan 08/2021 6.0  2,971
 2,971
 Beverage, Food and Tobacco Senior loan 08/2021 6.3  2,971
 2,971
Argon Medical Devices, Inc. Healthcare, Education and Childcare Senior loan 12/2021 5.9 3,133
 3,133
 Healthcare, Education and Childcare Senior loan 12/2021 6.0  2,949
 2,949
Boot Barn, Inc. Retail Stores Senior loan 06/2021 5.6  5,568
 5,568
 Retail Stores Senior loan 06/2021 5.8 5,285
 5,285
Brandmuscle, Inc. Printing and Publishing Senior loan 12/2021 5.9  4,233
 4,227
 Printing and Publishing Senior loan 12/2021 6.0  4,172
 4,168
Certara L.P. (3)
 Healthcare, Education and Childcare Senior loan 12/2018 6.6 3,698
 3,671
 Healthcare, Education and Childcare Senior loan 12/2018 6.8  3,689
 3,689
Certara L.P. (4)
 Healthcare, Education and Childcare Senior loan 12/2018 N/A
(5) 
 
 (2)
Checkers Drive-In Restaurants, Inc. Beverage, Food and Tobacco Senior loan 01/2022 6.6 3,725
 3,697
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan 12/2020 6.1  2,060
 2,060
 Healthcare, Education and Childcare Senior loan 12/2020 6.3 2,054
 2,013
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan 12/2020 6.1 1,038
 1,038
 Healthcare, Education and Childcare Senior loan 12/2020 6.3 1,035
 1,014
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.8 2,100
 2,100
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5  2,106
 2,106
 Personal, Food and Miscellaneous Services Senior loan 10/2021 6.8  1,056
 1,056
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5  1,059
 1,059
 Personal, Food and Miscellaneous Services Senior loan 10/2021 6.8 59
 59
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5  59
 59
 Personal, Food and Miscellaneous Services Senior loan 10/2021 6.8  36
 36
Curo Health Services LLC (3)
 Healthcare, Education and Childcare Senior loan 02/2022 5.8  4,900
 4,939
 Healthcare, Education and Childcare Senior loan 02/2022 5.9  4,888
 4,952
Encore GC Acquisition, LLC Healthcare, Education and Childcare Senior loan 01/2020 6.6  2,119
 2,119
 Healthcare, Education and Childcare Senior loan 01/2020 6.8  2,113
 2,113
Encore GC Acquisition, LLC Healthcare, Education and Childcare Senior loan 01/2020 8.3  92
 92
 Healthcare, Education and Childcare Senior loan 01/2020 8.5  72
 72
Express Oil Change, LLC Retail Stores Senior loan 12/2017 6.1  331
 331
Express Oil Change, LLC Retail Stores Senior loan 12/2017 7.8  16
 16
Flexan, LLC Chemicals, Plastics and Rubber Senior loan 02/2020 6.9 2,704
 2,704
 Chemicals, Plastics and Rubber Senior loan 02/2020 7.0  2,697
 2,697
Flexan, LLC Chemicals, Plastics and Rubber Senior loan 02/2020 6.9  753
 753
 Chemicals, Plastics and Rubber Senior loan 02/2020 7.0  753
 753
Gamma Technologies, LLC (3)
 Electronics Senior loan 06/2021 6.0  4,434
 4,434
 Electronics Senior loan 06/2021 6.2  4,423
 4,423
Harvey Tool Company, LLC Diversified/Conglomerate Manufacturing Senior loan 03/2020 6.1  1,995
 1,995
 Diversified/Conglomerate Manufacturing Senior loan 03/2020 6.1  1,981
 1,981
III US Holdings, LLC Diversified/Conglomerate Service Senior loan 09/2022 7.2  5,166
 5,166
 Diversified/Conglomerate Service Senior loan 09/2022 7.4 5,152
 5,152
Jensen Hughes, Inc. Buildings and Real Estate Senior loan 12/2021 6.4 2,009
 2,009
 Buildings and Real Estate Senior loan 12/2021 6.4  2,009
 2,009
Jensen Hughes, Inc. Buildings and Real Estate Senior loan 12/2021 6.2  89
 89
Jensen Hughes, Inc. Buildings and Real Estate Senior loan 12/2021 6.2  56
 56
Loar Group Inc. Aerospace and Defense Senior loan 01/2022 6.0  1,939
 1,939
Pasternack Enterprises, Inc. and Fairview Microwave, Inc Diversified/Conglomerate Manufacturing Senior loan 05/2022 6.2 5,026
 5,026


88


GCIC SLF Investment Portfolio as of March 31, 2017 - (continued)
Portfolio Company Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
           (In thousands)
Jensen Hughes, Inc. Buildings and Real Estate Senior loan 12/2021 6.0 $89
 $89
Jensen Hughes, Inc. Buildings and Real Estate Senior loan 12/2021 6.0  56
 56
Loar Group Inc. Aerospace and Defense Senior loan 01/2022 5.8  1,990
 1,990
Pasternack Enterprises, Inc. and Fairview Microwave, Inc. Diversified/Conglomerate Manufacturing Senior loan 05/2022 6.0  3,807
 3,807
PetVet Care Centers LLC Personal, Food and Miscellaneous Services Senior loan 12/2020 5.9  2,896
 2,896
PetVet Care Centers LLC Personal, Food and Miscellaneous Services Senior loan 12/2020 5.9  602
 602
PetVet Care Centers LLC Personal, Food and Miscellaneous Services Senior loan 12/2019 7.4  91
 91
Polk Acquisition Corp. (3)
 Automobile Senior loan 06/2022 6.0  8,570
 8,570
Polk Acquisition Corp. Automobile Senior loan 06/2022 6.0  54
 54
Polk Acquisition Corp. Automobile Senior loan 06/2022 6.6  35
 35
PowerPlan Holdings, Inc. (3)
 Utilities Senior loan 02/2022 5.8  7,494
 7,494
Premise Health Holding Corp. (3)
 Healthcare, Education and Childcare Senior loan 06/2020 5.6  5,955
 5,955
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan 08/2019 7.5  2,358
 2,358
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan 08/2019 7.5  79
 79
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 6.9  7,131
 7,131
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 6.9  545
 545
Radiology Partners, Inc. Healthcare, Education and Childcare Senior loan 09/2020 6.9  462
 462
RSC Acquisition, Inc. (3)
 Insurance Senior loan 11/2022 6.4  3,340
 3,340
RSC Acquisition, Inc. Insurance Senior loan 11/2020 5.8  15
 15
Rubio's Restaurants, Inc Beverage, Food and Tobacco Senior loan 11/2018 5.9
  1,685
 1,685
Rug Doctor LLC Personal and Non Durable Consumer Products (Mfg. Only) Senior loan 06/2018 6.3
  
 1,698
 1,698
Saldon Holdings, Inc. Diversified/Conglomerate Service Senior loan 09/2021 5.5
  2,103
 2,103
Sarnova HC, LLC Healthcare, Education and Childcare Senior loan 01/2022 5.8
  3,317
 3,317
SEI, Inc. (3)
 Electronics Senior loan 07/2021 5.8
  
 5,244
 5,243
Self Esteem Brands, LLC (3)
 Leisure, Amusement, Motion Pictures, Entertainment Senior loan 02/2020 5.8
  
 6,729
 6,662
Self Esteem Brands, LLC (4)
 Leisure, Amusement, Motion Pictures, Entertainment Senior loan 02/2020  N/A
(5) 
 
 (8)
Severin Acquisition, LLC (3)
 Diversified/Conglomerate Service Senior loan 07/2021 6.0
  
 7,888
 7,809
Severin Acquisition, LLC Diversified/Conglomerate Service Senior loan 07/2021 6.1
  
 1,085
 1,078
Severin Acquisition, LLC (3)(4)
 Diversified/Conglomerate Service Senior loan 07/2021  N/A
(5) 
 
 (1)
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 5,537
 5,426
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 437
 429
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  436
 427
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.6
  435
 426
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 434
 425
Smashburger Finance LLC (4)
 Beverage, Food and Tobacco Senior loan 05/2018  N/A
(5) 
 
 (14)
Southern Anesthesia and Surgical Healthcare, Education and Childcare Senior loan 11/2017 6.6
  
 187
 187
Southern Anesthesia and Surgical Healthcare, Education and Childcare Senior loan 11/2017 6.6
  
 117
 117
Tate's Bake Shop, Inc. Beverage, Food and Tobacco Senior loan 08/2019 6.1
  708
 708
Teasdale Quality Foods, Inc. Grocery Senior loan 10/2020 5.4
  
 1,104
 1,100
Transaction Data Systems, Inc. Diversified/Conglomerate Service Senior loan 06/2021 6.4
  
 3,912
 3,912
Young Innovations, Inc. Healthcare, Education and Childcare Senior loan 01/2019 6.1
  
 755
 755
Zest Holdings, LLC Healthcare, Education and Childcare Senior loan 08/2020 5.9
  
 4,708
 4,708
            $158,273
 $157,921


89


GCIC SLF Investment Portfolio as of June 30, 2017 - (continued)
Portfolio Company Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
           (In thousands)
Polk Acquisition Corp. (3)
 Automobile Senior loan 06/2022 6.2 $8,548
 $8,548
Polk Acquisition Corp. Automobile Senior loan 06/2022 6.2  54
 54
Polk Acquisition Corp. Automobile Senior loan 06/2022 6.6  43
 43
PowerPlan Holdings, Inc. (3)
 Utilities Senior loan 02/2022 6.0  7,126
 7,126
Premise Health Holding Corp. (3)
 Healthcare, Education and Childcare Senior loan 06/2020 5.8  5,940
 5,940
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan 08/2019 7.7  2,352
 2,352
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan 08/2019 7.7  79
 79
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 7.0  7,113
 7,113
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 7.0  543
 543
Radiology Partners, Inc. Healthcare, Education and Childcare Senior loan 09/2020 7.0  461
 461
RSC Acquisition, Inc. (3)
 Insurance Senior loan 11/2022 6.5  3,331
 3,315
RSC Acquisition, Inc. Insurance Senior loan 11/2020 6.0  15
 15
Rubio's Restaurants, Inc (MRCC) Beverage, Food and Tobacco Senior loan 11/2018 6.0  1,680
 1,680
Rug Doctor LLC Personal and Non Durable Consumer Products (Mfg. Only) Senior loan 06/2018 6.5  1,535
 1,535
Saldon Holdings, Inc. Diversified/Conglomerate Service Senior loan 09/2021 5.7  2,060
 2,060
Sarnova HC, LLC Healthcare, Education and Childcare Senior loan 01/2022 6.0  3,309
 3,309
SEI, Inc. (3)
 Electronics Senior loan 07/2021 6.0  5,230
 5,178
Self Esteem Brands, LLC (3)
 Leisure, Amusement, Motion Pictures, Entertainment Senior loan 02/2020 6.0  6,558
 6,558
Severin Acquisition, LLC (3)
 Diversified/Conglomerate Service Senior loan 07/2021 6.2  7,868
 7,864
Severin Acquisition, LLC Diversified/Conglomerate Service Senior loan 07/2021 6.3  1,082
 1,086
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 5,523
 5,247
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8  436
 414
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8  435
 413
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 434
 412
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 433
 411
Smashburger Finance LLC (4)
 Beverage, Food and Tobacco Senior loan 05/2018 N/A
(5) 
 
 (35)
Tate's Bake Shop, Inc. (3)
 Beverage, Food and Tobacco Senior loan 08/2019 6.3
  
 707
 707
Teasdale Quality Foods, Inc. Grocery Senior loan 10/2020 5.5
  
 1,103
 1,098
Transaction Data Systems, Inc. Diversified/Conglomerate Service Senior loan 06/2021 6.6  3,902
 3,902
Transaction Data Systems, Inc. Diversified/Conglomerate Service Senior loan 06/2020 5.7
  
 22
 21
Young Innovations, Inc. (3)
 Healthcare, Education and Childcare Senior loan 01/2019 6.3
  
 753
 753
Young Innovations, Inc. Healthcare, Education and Childcare Senior loan 01/2019 6.3  31
 31
            $143,363
 $142,889
 
(1) 
Represents the weighted average annual current interest rate as of March 31,June 30, 2017. All interest rates are payable in cash.
(2) 
Represents the fair value in accordance with Accounting Standards Codification, or ASC, Topic 820 - Fair Value Measurement, or ASC Topic 820. The determination of such fair value is not included in our board of directors' valuation process described elsewhere herein.
(3) 
We also hold a portion of the first lien senior secured loan in this portfolio company.
(4) 
The negative fair value is the result of the unfunded commitment being valued below par.
(5) 
The entire commitment was unfunded at March 31,as of June 30, 2017. As such, no interest is being earned on this investment.




89


GCIC SLF Loan Portfolio as of September 30, 2016
Portfolio Company Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
 Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
          (In thousands)          (In thousands)
1A Smart Start LLC Home and Office Furnishings, Housewares, and Durable Consumer Senior loan 02/2022 5.8
 $1,365
 $1,361
 Home and Office Furnishings, Housewares, and Durable Consumer Senior loan 02/2022 5.8
 $1,365
 $1,361
Aimbridge Hospitality, LLC Hotels, Motels, Inns, and Gaming Senior loan 10/2018 5.8
  
 2,431
 2,431
 Hotels, Motels, Inns, and Gaming Senior loan 10/2018 5.8
  
 2,431
 2,431
American Seafoods Group LLC Beverage, Food and Tobacco Senior loan 08/2021 6.0
  
 3,108
 3,100
 Beverage, Food and Tobacco Senior loan 08/2021 6.0
  
 3,108
 3,100
Argon Medical Devices, Inc. Healthcare, Education and Childcare Senior loan 12/2021 5.8
  
 3,444
 3,444
 Healthcare, Education and Childcare Senior loan 12/2021 5.8
  
 3,444
 3,444
Boot Barn, Inc. Retail Stores Senior loan 06/2021 5.5
 5,596
 5,596
 Retail Stores Senior loan 06/2021 5.5
 5,596
 5,596
Brandmuscle, Inc. Printing and Publishing Senior loan 12/2021 5.8
  
 4,255
 4,246
 Printing and Publishing Senior loan 12/2021 5.8
  
 4,255
 4,246
C.B. Fleet Company, Incorporated Personal and Non Durable Consumer Products Senior loan 12/2021 5.8
  
 8,346
 8,346
 Personal and Non Durable Consumer Products Senior loan 12/2021 5.8
  
 8,346
 8,346
Checkers Drive-In Restaurants, Inc. Beverage, Food and Tobacco Senior loan 01/2022 6.5
 3,945
 3,915
 Beverage, Food and Tobacco Senior loan 01/2022 6.5
 3,945
 3,915
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan 12/2020 6.3
  
 1,043
 1,043
 Healthcare, Education and Childcare Senior loan 12/2020 6.3
  
 1,043
 1,043
CLP Healthcare Services, Inc. Healthcare, Education and Childcare Senior loan 12/2020 6.3
 2,070
 2,070
 Healthcare, Education and Childcare Senior loan 12/2020 6.3
 2,070
 2,070
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5
  
 1,064
 1,059
 Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5
  
 1,064
 1,059
Community Veterinary Partners, LLC Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5
 2,117
 2,106
 Personal, Food and Miscellaneous Services Senior loan 10/2021 6.5
 2,117
 2,106
Curo Health Services LLC Healthcare, Education and Childcare Senior loan 02/2022 6.5
  
 4,925
 4,940
 Healthcare, Education and Childcare Senior loan 02/2022 6.5
  
 4,925
 4,940
Encore GC Acquisition, LLC Healthcare, Education and Childcare Senior loan 01/2020 7.8
  
 73
 73
 Healthcare, Education and Childcare Senior loan 01/2020 7.8
  
 73
 73
Encore GC Acquisition, LLC Healthcare, Education and Childcare Senior loan 01/2020 6.3
  
 2,130
 2,130
 Healthcare, Education and Childcare Senior loan 01/2020 6.3
  
 2,130
 2,130
Express Oil Change, LLC Retail Stores Senior loan 12/2017 6.0
  
 340
 340
 Retail Stores Senior loan 12/2017 6.0
  
 340
 340
Flexan, LLC Chemicals, Plastics and Rubber Senior loan 02/2020 6.3
  
 2,718
 2,718
 Chemicals, Plastics and Rubber Senior loan 02/2020 6.3
  
 2,718
 2,718
Harvey Tool Company, LLC Diversified/Conglomerate Manufacturing Senior loan 03/2020 6.0
  
 2,005
 2,005
 Diversified/Conglomerate Manufacturing Senior loan 03/2020 6.0
  
 2,005
 2,005
Jensen Hughes, Inc. Diversified/Conglomerate Service Senior loan 12/2021 6.2
  
 56
 56
 Diversified/Conglomerate Service Senior loan 12/2021 6.2
  
 56
 56
Jensen Hughes, Inc. Diversified/Conglomerate Service Senior loan 12/2021 6.0
  
 89
 89
 Diversified/Conglomerate Service Senior loan 12/2021 6.0
  
 89
 89
Jensen Hughes, Inc. Diversified/Conglomerate Service Senior loan 12/2021 6.3
 2,014
 2,014
 Diversified/Conglomerate Service Senior loan 12/2021 6.3
 2,014
 2,014
Loar Group Inc. Aerospace and Defense Senior loan 01/2022 5.8
  
 2,000
 2,000
 Aerospace and Defense Senior loan 01/2022 5.8
  
 2,000
 2,000
Mediaocean LLC Diversified/Conglomerate Service Senior loan 08/2022 5.8
 2,025
 2,025
 Diversified/Conglomerate Service Senior loan 08/2022 5.8
 2,025
 2,025
Pasternack Enterprises, Inc. and Fairview Microwave, Inc (3)
 Diversified/Conglomerate Manufacturing Senior loan 05/2022 6.0
  
 1,530
 1,515
 Diversified/Conglomerate Manufacturing Senior loan 05/2022 6.0
  
 1,530
 1,515
Pentec Acquisition Sub, Inc. Healthcare, Education and Childcare Senior loan 05/2018 6.3
  
 438
 438
 Healthcare, Education and Childcare Senior loan 05/2018 6.3
  
 438
 438
PetVet Care Centers LLC Personal, Food and Miscellaneous Services Senior loan 12/2020 5.8
 605
 605
 Personal, Food and Miscellaneous Services Senior loan 12/2020 5.8
 605
 605
PetVet Care Centers LLC Personal, Food and Miscellaneous Services Senior loan 12/2020 5.8
  
 2,911
 2,911
 Personal, Food and Miscellaneous Services Senior loan 12/2020 5.8
  
 2,911
 2,911
PowerPlan Holdings, Inc. (3)
 Utilities Senior loan 02/2022 5.8
 7,521
 7,521
 Utilities Senior loan 02/2022 5.8
 7,521
 7,521
PPT Management, LLC Healthcare, Education and Childcare Senior loan 04/2020 6.0
  
 10
 10
 Healthcare, Education and Childcare Senior loan 04/2020 6.0
  
 10
 10
PPT Management, LLC (3)
 Healthcare, Education and Childcare Senior loan 04/2020 6.0
  
 6,293
 6,293
 Healthcare, Education and Childcare Senior loan 04/2020 6.0
  
 6,293
 6,293
Premise Health Holding Corp. (3)
 Healthcare, Education and Childcare Senior loan 06/2020 5.5
 5,985
 5,985
 Healthcare, Education and Childcare Senior loan 06/2020 5.5
 5,985
 5,985
Pyramid Healthcare, Inc. Healthcare, Education and Childcare Senior loan 08/2019 7.8
  
 90
 90
 Healthcare, Education and Childcare Senior loan 08/2019 7.8
  
 90
 90
Pyramid Healthcare, Inc. (3)
 Healthcare, Education and Childcare Senior loan 08/2019 6.8
 2,012
 2,012
 Healthcare, Education and Childcare Senior loan 08/2019 6.8
 2,012
 2,012
Radiology Partners, Inc. Healthcare, Education and Childcare Senior loan 09/2020 6.5
 465
 460
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 6.5
  
 728
 722
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 6.5
  
 6,438
 6,373
Radiology Partners, Inc. (4)
 Healthcare, Education and Childcare Senior loan 09/2020 N/A
(5) 
 
 (5)
Radiology Partners, Inc. (4)
 Healthcare, Education and Childcare Senior loan 09/2020 N/A
(5) 
 
 (3)
RSC Acquisition, Inc. Insurance Senior loan 11/2020 6.8
 33
 33
RSC Acquisition, Inc. (3)
 Insurance Senior loan 11/2022 6.3
  
 148
 148
RSC Acquisition, Inc. (3)
 Insurance Senior loan 11/2022 6.3
  
 3,209
 3,209
Rubio's Restaurants, Inc Beverage, Food and Tobacco Senior loan 11/2018 6.0
  
 1,693
 1,693


90


GCIC SLF Loan Portfolio as of September 30, 2016 - (continued)
Portfolio Company Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
 Business Description Security Type 
Maturity
Date
 
Current
Interest
Rate(1)
 Principal ($) 
Fair
Value(2)
          (In thousands)          (In thousands)
Radiology Partners, Inc. Healthcare, Education and Childcare Senior loan 09/2020 6.5
% $465
 $460
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 6.5
  
 728
 722
Radiology Partners, Inc. (3)
 Healthcare, Education and Childcare Senior loan 09/2020 6.5
  
 6,438
 6,373
Radiology Partners, Inc. (4)
 Healthcare, Education and Childcare Senior loan 09/2020 N/A
(5) 
 
 (5)
Radiology Partners, Inc. (4)
 Healthcare, Education and Childcare Senior loan 09/2020 N/A
(5) 
 
 (3)
RSC Acquisition, Inc. Insurance Senior loan 11/2020 6.8
 33
 33
RSC Acquisition, Inc. (3)
 Insurance Senior loan 11/2022 6.3
  
 148
 148
RSC Acquisition, Inc. (3)
 Insurance Senior loan 11/2022 6.3
  
 3,209
 3,209
Rubio's Restaurants, Inc Beverage, Food and Tobacco Senior loan 11/2018 6.0
  
 1,693
 1,693
Rug Doctor LLC Personal and Non Durable Consumer Products Senior loan 06/2018 6.3
 2,016
 2,016
 Personal and Non Durable Consumer Products Senior loan 06/2018 6.3
% $2,016
 $2,016
Saldon Holdings, Inc. Diversified/Conglomerate Service Senior loan 09/2021 5.5
 2,186
 2,186
 Diversified/Conglomerate Service Senior loan 09/2021 5.5
 2,186
 2,186
Sarnova HC, LLC Healthcare, Education and Childcare Senior loan 01/2022 5.8
  
 3,334
 3,334
 Healthcare, Education and Childcare Senior loan 01/2022 5.8
  
 3,334
 3,334
SEI, Inc. Electronics Senior loan 07/2021 5.8
  
 5,270
 5,270
 Electronics Senior loan 07/2021 5.8
  
 5,270
 5,270
Self Esteem Brands, LLC Leisure, Amusement, Motion Pictures and Entertainment Senior loan 02/2020 5.0
  
 5,106
 5,106
 Leisure, Amusement, Motion Pictures and Entertainment Senior loan 02/2020 5.0
  
 5,106
 5,106
Severin Acquisition, LLC (3)
 Diversified/Conglomerate Service Senior loan 07/2021 5.9
 7,928
 7,890
 Diversified/Conglomerate Service Senior loan 07/2021 5.9
 7,928
 7,890
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
 455
 445
 Beverage, Food and Tobacco Senior loan 05/2018 6.8
 455
 445
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 456
 447
 Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 456
 447
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 457
 448
 Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 457
 448
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 458
 449
 Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 458
 449
Smashburger Finance LLC Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 5,800
 5,685
 Beverage, Food and Tobacco Senior loan 05/2018 6.8
  
 5,800
 5,685
Smashburger Finance LLC (4)
 Beverage, Food and Tobacco Senior loan 05/2018 N/A
(5) 
 
 (14) Beverage, Food and Tobacco Senior loan 05/2018 N/A
(5) 
 
 (14)
Tate's Bake Shop, Inc. (3)
 Beverage, Food and Tobacco Senior loan 08/2019 6.0
 712
 712
 Beverage, Food and Tobacco Senior loan 08/2019 6.0
 712
 712
Teasdale Quality Foods, Inc. Grocery Senior loan 10/2020 5.3
  
 1,104
 1,100
 Grocery Senior loan 10/2020 5.3
  
 1,104
 1,100
Transaction Data Systems, Inc. Diversified/Conglomerate Service Senior loan 06/2020 5.5
  
 9
 8
 Diversified/Conglomerate Service Senior loan 06/2020 5.5
  
 9
 8
Transaction Data Systems, Inc. Diversified/Conglomerate Service Senior loan 06/2021 6.3
 2,763
 2,763
 Diversified/Conglomerate Service Senior loan 06/2021 6.3
 2,763
 2,763
Worldwide Express Operations, LLC Cargo Transport Senior loan 07/2019 6.0
 100
 100
 Cargo Transport Senior loan 07/2019 6.0
 100
 100
Worldwide Express Operations, LLC (3)
 Cargo Transport Senior loan 07/2019 6.0
  
 5,963
 5,963
 Cargo Transport Senior loan 07/2019 6.0
  
 5,963
 5,963
Young Innovations, Inc. Healthcare, Education and Childcare Senior loan 01/2018 6.8
  
 10
 10
 Healthcare, Education and Childcare Senior loan 01/2018 6.8
  
 10
 10
Young Innovations, Inc. Healthcare, Education and Childcare Senior loan 01/2019 5.3
  
 354
 356
 Healthcare, Education and Childcare Senior loan 01/2019 5.3
  
 354
 356
Zest Holdings, LLC Healthcare, Education and Childcare Senior loan 08/2020 5.8
  
 4,732
 4,732
 Healthcare, Education and Childcare Senior loan 08/2020 5.8
  
 4,732
 4,732
   $146,481
 $146,123
   $146,481
 $146,123
 
(1) 
Represents the weighted average annual current interest rate as of September 30, 2016. All interest rates are payable in cash.
(2) 
Represents the fair value in accordance with ASC Topic 820. The determination of such fair value is not included in our board of directors' valuation process described elsewhere herein.
(3) 
We also hold a portion of the first lien senior secured loan in this portfolio company.
(4) 
The negative fair value is the result of the unfunded commitment being valued below par.
(5) 
The entire commitment was unfunded atas of September 30, 2016. As such, no interest is being earned on this investment.


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As of March 31,June 30, 2017, we have committed to fund $109.4 million of LLC equity interest subscriptions to GCIC SLF. As of March 31,June 30, 2017 and September 30, 2016, $51.3$47.2 million and $12.3 million, respectively, of our LLC equity interest subscriptions to GCIC SLF had been called and contributed, net of return of capital distributions subject to recall. For the three and sixnine months ended March 31,June 30, 2017, we received $1.2 million and $1.7$2.9 million, respectively, in dividend income from the GCIC SLF LLC equity interests. For the three and sixnine months ended March 31,June 30, 2016, we did not earn dividend income from the GCIC SLF LLC equity interests.

As of September 30, 2016, the amortized cost and fair value of the subordinated notes held by us was $34.9 million and $34.9 million, respectively. As of September 30, 2016, the subordinated notes paid a weighted average interest rate of three-month LIBOR plus 8.0%. For the sixnine months ended March 31,June 30, 2017, we earned interest income on the subordinated notes of $0.7 million. The subordinated notes held by us were redeemed on December 30, 2016, and, therefore, no interest income was earned for the three months ended March 31,June 30, 2017. For the three and sixnine months ended March 31,June 30, 2016, we earned interest income on the subordinated notes of $0.7 million and $1.2$1.9 million, respectively.

For the three and sixnine months ended March 31,June 30, 2017, we earned an annualized total return on our weighted average capital invested in GCIC SLF of 9.5%8.2% and 10.0%9.4%, respectively. For the three and sixnine months ended March 31,June 30, 2016, we earned an annualized total return on our weighted average capital invested in GCIC SLF of 9.2%11.3% and 8.1%9.3%, respectively. The annualized total return on weighted average capital invested is calculated by dividing total income earned on our investments in GCIC SLF by the combined daily average of our investments in (1) the principal of the GCIC SLF subordinated notes, if any, and (2) the NAV of the GCIC SLF LLC equity interests.

See below for certain summarized financial information for GCIC SLF as of March 31,June 30, 2017 and September 30, 2016 and for the three and sixnine months ended March 31,June 30, 2017 and 2016:
As of March 31, 2017 As of September 30, 2016As of June 30, 2017 As of September 30, 2016
(In thousands)(In thousands)
Selected Balance Sheet Information:  
   
  
   
Investments, at fair value$157,921
 $146,123
$142,889
 $146,123
Cash and other assets3,319
 3,344
3,194
 3,344
Total assets$161,240
 $149,467
$146,083
 $149,467
Senior credit facility$102,000
 $95,500
$90,450
 $95,500
Unamortized debt issuance costs(984) (1,122)(916) (1,122)
Payable for investments purchased1,229
 
Other liabilities312
 282
328
 282
Total liabilities101,328
 94,660
91,091
 94,660
Subordinated notes and members’ equity59,912
 54,807
54,992
 54,807
Total liabilities and members' equity$161,240
 $149,467
$146,083
 $149,467


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Three months ended March 31, Six months ended March 31,Three months ended June 30, Nine months ended June 30,
2017 2016 2017 20162017 2016 2017 2016
(In thousands) (In thousands)(In thousands) (In thousands)
Selected Statement of Operations Information:  
   
      
   
    
Interest income$2,612
 $1,642
 $5,053
 $2,353
$2,478
 $2,140
 $7,531
 $4,493
Total investment income2,612
 1,642
 5,053
 2,353
2,478
 2,140
 7,531
 4,493
Interest expense903
 1,415
 2,616
 2,249
961
 1,620
 3,577
 3,869
Administrative service fee51
 57
 106
 74
57
 38
 163
 112
Other expenses24
 20
 48
 39
25
 26
 73
 65
Total expenses978
 1,492
 2,770
 2,362
1,043
 1,684
 3,813
 4,046
Net investment income (loss)1,634
 150
 2,283
 (9)1,435
 456
 3,718
 447
Net change in unrealized appreciation (depreciation) on investments and subordinated notes(99) 558
 (37) 669
(205) 171
 (242) 840
Net increase (decrease) in net assets$1,535
 $708
 $2,246
 $660
$1,230
 $627
 $3,476
 $1,287

Prior to their termination, GCIC SLF elected to fair value the subordinated notes issued to us and Aurora under ASC Topic 825 — Financial Instruments, or ASC Topic 825. The subordinated notes were valued by calculating the net present value of the future expected cash flow streams using an appropriate risk-adjusted discount rate model. For each of the three and sixnine months ended March 31,June 30, 2017, GCIC SLF did not recognize unrealized appreciation or depreciation on the subordinated notes. For each of the three and sixnine months ended March 31,June 30, 2016, GCIC SLF recognized $0.4 million in unrealized depreciation on the subordinated notes.

As of March 31,June 30, 2017, GCIC SLF had no subordinated notes outstanding. As of September 30, 2016, GCIC SLF had $39.9 million of aggregate contractual principal amounts of subordinated notes outstanding for which the fair value option was elected with a fair value and carrying value of $39.9 million.

Contractual Obligations and Off-Balance Sheet Arrangements

A summary of our significant contractual payment obligations as of March 31,June 30, 2017 is as follows:
Payments Due by Period (In millions)Payments Due by Period (In millions)
Total 
Less Than
1 Year
 1 – 3 Years 3 – 5 Years 
More Than
5 Years
Total 
Less Than
1 Year
 1 – 3 Years 3 – 5 Years 
More Than
5 Years
GCIC 2016 Debt Securitization$252.5
 $
 $
 $
 $252.5
$252.5
 $
 $
 $
 $252.5
Credit Facility270.2
 
 
 270.2
 
303.4
 
 
 303.4
 
SMBC Revolver49.2
 
 49.2
 
 
75.0
 75.0
 
 
 
Revolver
 
 
 
 

 
 
 
 
Unfunded commitments (1)
54.2
 54.2
 
 
 
127.0
 127.0
 
 
 
Total contractual obligations$626.1
 $54.2
 $49.2
 $270.2
 $252.5
$757.9
 $202.0
 $
 $303.4
 $252.5
 
(1) 
Unfunded commitments represent unfunded commitments to fund investments, excluding our investments in GCIC SLF, as of March 31,June 30, 2017. These amounts may or may not be funded to the borrowing party now or in the future. The unfunded commitments relate to loans with various maturity dates, but we are showing this amount in the less than one year category as this entire amount was eligible for funding to the borrowers as of March 31,June 30, 2017, subject to the terms of each loan’s respective credit agreement.


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We may become a party to financial instruments with off-balance sheet risk in the normal course of our business to meet the financial needs of our portfolio companies. These instruments may include


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commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of March 31,June 30, 2017 and September 30, 2016, we had outstanding commitments to fund investments, excluding our investments in GCIC SLF, totaling $54.2$127.0 million and $42.7 million, respectively. We have commitments of up to $58.0$62.2 million and $62.2 million to GCIC SLF as of March 31,June 30, 2017 and September 30, 2016, respectively, that may be contributed primarily for the purpose of funding new investments approved by the GCIC SLF investment committee.

We have certain contracts under which we have material future commitments. We have entered into the Investment Advisory Agreement with GC Advisors in accordance with the 1940 Act. Under the Investment Advisory Agreement, GC Advisors provides us with investment advisory and management services.

Under the Administration Agreement, the Administrator furnishes us with office facilities and equipment, provides us with clerical, bookkeeping and record keeping services at such facilities and provides us with other administrative services necessary to conduct our day-to-day operations. The Administrator also provides on our behalf managerial assistance to those portfolio companies to which we are required to offer to provide such assistance.

If any of the contractual obligations discussed above is terminated, our costs under any new agreements that we enter into may increase. In addition, we would likely incur significant time and expense in locating alternative parties to provide the services we receive under our Investment Advisory Agreement and our Administration Agreement. Any new investment advisory agreement would also be subject to approval by our stockholders.

Distributions

We intend to make monthly or quarterly distributions to our stockholders as determined by our board of directors. For additional information on distributions, see “Critical Accounting Policies - Income Taxes.”

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of our distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage requirements applicable to us as a business development company under the 1940 Act. If we do not distribute a certain percentage of our income annually, we will suffer adverse U.S. federal income tax consequences, including the possible loss of our ability to be subject to tax as a RIC. We cannot assure stockholders that they will receive any distributions.

To the extent our taxable earnings fall below the total amount of our distributions for any tax year, a portion of those distributions may be deemed a return of capital to our stockholders for U.S. federal income tax purposes. Thus, the source of a distribution to our stockholders may be the original capital invested by the stockholder rather than our income or gains. Stockholders should read any written disclosure accompanying a distribution payment carefully and should not assume that the source of any distribution is our ordinary income or gains.

We have adopted an “opt out” dividend reinvestment plan for our common stockholders. As a result, if we declare a distribution, our stockholders’ cash distributions will be automatically reinvested in additional shares of our common stock unless a stockholder specifically “opts out” of our dividend reinvestment plan. If a stockholder opts out, that stockholder will receive cash distributions. Although distributions paid


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in the form of additional shares of our common stock will generally be subject to U.S. federal, state and local taxes in the same manner as cash distributions, stockholders participating in our dividend


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reinvestment plan will not receive any corresponding cash distributions with which to pay any such applicable taxes.

Related Party Transactions

We have entered into a number of business relationships with affiliated or related parties, including the following:

We entered into the Investment Advisory Agreement with GC Advisors. Each of Mr. Lawrence Golub, our chairman, and Mr. David Golub, our president and chief executive officer, is a manager of GC Advisors, and each of Messrs. Lawrence Golub and David Golub owns an indirect pecuniary interest in GC Advisors.

Golub Capital LLC provides us with the office facilities and administrative services necessary to conduct day-to-day operations pursuant to our Administration Agreement.

We have entered into a license agreement with Golub Capital LLC, pursuant to which Golub Capital LLC has granted us a non-exclusive, royalty-free license to use the name “Golub Capital.”

GC Advisors serves as collateral manager to the GCIC 2016 Issuer under the 2016 GCIC Collateral Management Agreement and receives a fee for providing these services that is offset against the base management fee payable by us under the Investment Advisory Agreement.

Under a staffing agreement, or the Staffing Agreement, Golub Capital LLC has agreed to provide GC Advisors with the resources necessary to fulfill its obligations under the Investment Advisory Agreement. The Staffing Agreement provides that Golub Capital LLC will make available to GC Advisors experienced investment professionals and provide access to the senior investment personnel of Golub Capital LLC for purposes of evaluating, negotiating, structuring, closing and monitoring our investments. The Staffing Agreement also includes a commitment that the members of GC Advisors’
investment committee will serve in such capacity. Services under the Staffing Agreement are provided on a direct cost reimbursement basis.

We have entered into the Revolver with GC Advisors in order to have the ability to borrow funds on a short-term basis.

Immediately prior to our election to be regulated as a business development company, we acquired our initial portfolio of investments by purchasing (1) all of the outstanding equity interests of GCIC Holdings LLC, or GCIC Holdings, and GCIC Funding, from GEMS Fund, L.P., a Delaware limited partnership whose general partner is controlled by GC Advisors, and (2) loans from certain unaffiliated third-party investors. At the time of our acquisition of their respective equity interests, the only assets (other than certain cash and cash equivalents) of GCIC Funding and GCIC Holdings were senior secured and one stop loans to U.S. middle-market companies consistent with our investment objectives and strategies. Each of the loans acquired in our formation transactions had been underwritten by GC Advisors at the time of origination or acquisition using the same criteria and standards as GC Advisors uses in connection with the origination or acquisition of loans for us.

GC Advisors also sponsors or manages, and may in the future sponsor or manage, other investment funds, accounts or investment vehicles (together referred to as “accounts”) that have investment mandates that are


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similar, in whole and in part, with ours. For example, GC Advisors presently serves as the investment adviser to Golub Capital BDC, Inc., a publicly-traded business development company (NASDAQ: GBDC) that focuses on investing primarily in senior secured and one stop loans of U.S. middle-market companies. In addition, our officers and directors serve in similar capacities for Golub Capital BDC, Inc. GC Advisors and its affiliates may determine that an investment is appropriate for us and for one or more of these other accounts. In such event, depending on the availability of such investment and other appropriate factors, and pursuant to GC Advisors’ allocation policy, GC Advisors or its affiliates may determine that we should invest side-by-side with one or more other accounts. We do not intend to make any investments if they are not permitted by applicable law and interpretive positions of the SEC and its staff, or if they are inconsistent with GC Advisors’ allocation procedures.

In addition, we have adopted a formal code of ethics that governs the conduct of our and GC Advisors’ officers, directors and employees. Our officers and directors also remain subject to the duties imposed by both the 1940 Act and the General Corporation Law of the State of Maryland.

Critical Accounting Policies

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies.

Fair Value Measurements

We value investments for which market quotations are readily available at their market quotations. However, a readily available market value is not expected to exist for many of the investments in our portfolio, and we value these portfolio investments at fair value as determined in good faith by our board of directors under our valuation policy and process.

Valuation methods may include comparisons of the portfolio companies to peer companies that are public, determination of the enterprise value of a portfolio company, discounted cash flow analysis and a market interest rate approach. The factors that are taken into account in fair value pricing investments include: available current market data, including relevant and applicable market trading and transaction comparables; applicable market yields and multiples; security covenants; call protection provisions;


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information rights; the nature and realizable value of any collateral; the portfolio company’s ability to make payments, its earnings and discounted cash flows and the markets in which it does business; comparisons of financial ratios of peer companies that are public; comparable merger and acquisition transactions; and the principal market and enterprise values. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we will consider the pricing indicated by the external event to corroborate the private equity valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and may differ materially from values that may ultimately be received or settled.

Our board of directors is ultimately and solely responsible for determining, in good faith, the fair value of investments that are not publicly traded, whose market prices are not readily available on a quarterly basis or any other situation where portfolio investments require a fair value determination.

With respect to investments for which market quotations are not readily available, our board of directors undertakes a multi-step valuation process each quarter, as described below:



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Our quarterly valuation process begins with each portfolio company investment being initially valued by the investment professionals of GC Advisors responsible for credit monitoring.
Preliminary valuation conclusions are then documented and discussed with our senior management and GC Advisors.
The audit committee of our board of directors reviews these preliminary valuations.
At least once annually, the valuation for each portfolio investment is reviewed by an independent valuation firm.
The board of directors discusses valuations and determines the fair value of each investment in our portfolio in good faith.

In connection with each sale of shares of our common stock, we make a determination that we are not selling shares of our common stock at a price below the then-current net asset value per share of common stock at the time at which the sale is made or otherwise in violation of the 1940 Act.  GC Advisors will consider the following factors, among others, in making such determination:

The net asset value of our common stock disclosed in the most recent periodic report filed with the SEC; 
Its assessment of whether any change in the net asset value per share of our common stock has occurred (including through the realization of gains on the sale of portfolio securities) during the period beginning on the date of the most recently disclosed net asset value per share of our common stock and ending two days prior to the date of the sale; and
The magnitude of the difference between the sale price of the shares of common stock and management’s assessment of any change in the net asset value per share of our common stock during the period discussed above.

Determination of fair values involves subjective judgments and estimates. Under current accounting standards, the notes to our consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our consolidated financial statements.

We follow ASC Topic 820 for measuring fair value. Fair value is the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the


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measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the assets or liabilities or market and the assets’ or liabilities’ complexity. Our fair value analysis includes an analysis of the value of any unfunded loan commitments. Assets and liabilities are categorized for disclosure purposes based upon the level of judgment associated with the inputs used to measure their value. The valuation hierarchical levels are based upon the transparency of the inputs to the valuation of the asset or liability as of the measurement date. The three levels are defined as follows:

Level 1: Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2: Inputs include quoted prices for similar assets or liabilities in active markets and inputs that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the assets or liabilities.
Level 3: Inputs include significant unobservable inputs for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of


97


fair value are based upon the best information available and may require significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and we consider factors specific to the asset or liability. We assess the levels of assets and liabilities at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfers. There were no transfers among Level 1, 2 and 3 of the fair value hierarchy for assets and liabilities during the three and sixnine months ended March 31,June 30, 2017 and 2016. The following section describes the valuation techniques used by us to measure different assets and liabilities at fair value and includes the level within the fair value hierarchy in which the assets and liabilities are categorized.

Valuation of Investments

Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by our board of directors, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of our board of directors to assist in the valuation of each portfolio investment without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process. This valuation process is conducted at the end of each fiscal quarter, with approximately 25% (based on the number of portfolio companies) of our valuations of debt and equity investments without readily available market quotations subject to review by an independent valuation firm. As of March 31,June 30, 2017 and September 30, 2016, with the exception of money market funds included in cash and cash equivalents and restricted cash and cash equivalents (Level 1 investments) and investments measured at fair value using the NAV, all investments were valued using Level 3 inputs of the fair value hierarchy.



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When determining fair value of Level 3 debt and equity investments, we may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary method for determining enterprise value uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA. A portfolio company’s EBITDA may include pro-forma adjustments for items such as acquisitions, divestures, or expense reductions. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired, we will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, we use a market interest rate yield analysis to determine fair value.

In addition, for certain debt investments, we may base our valuation on indicative bid and ask prices provided by an independent third party pricing service. Bid prices reflect the highest price that we and others may be willing to pay. Ask prices represent the lowest price that we and others may be willing to


98


accept. We generally use the midpoint of the bid/ask range as our best estimate of fair value of such investment.

Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we may realize significantly less than the value at which such investment had previously been recorded.

Our investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.

Valuation of Other Financial Assets and Liabilities

Fair value of our debt is estimated using Level 3 inputs by discounting remaining payments using comparable market rates or market quotes for similar instruments at the measurement date, if available.

Revenue Recognition:

Our revenue recognition policies are as follows:

Investments and Related Investment Income: Interest income is accrued based upon the outstanding principal amount and contractual interest terms of debt investments. Premiums, discounts, and origination fees are amortized or accreted into interest income over the life of the respective debt investment. For investments with contractual PIK interest, which represents contractual interest accrued and added to the principal balance that generally becomes due at maturity, we do not accrue PIK interest if the portfolio company valuation indicates that the PIK interest is not likely to be collectible. In addition, we may generate revenue in the form of amendment, structuring or due diligence fees, fees for providing managerial assistance, consulting fees and prepayment premiums on loans and record these fees as fee income when received. Loan origination fees, original issues discount and market discount or premium


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are capitalized, and we accrete or amortize such amounts as interest income. We record prepayment premiums on loans as fee income. Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Distributions received from LLC and limited partnership, or LP, investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, we will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

We account for investment transactions on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the cost basis of investment, without regard to unrealized gains or losses previously recognized. We report changes in fair value of investments from the prior period that is measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments in our consolidated statements of operations.


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Non-accrual: Loans may be left on accrual status during the period we are pursuing repayment of the loan. Management reviews all loans that become past due 90 days or more on principal and interest or when there is reasonable doubt that principal or interest will be collected for possible placement on non-accrual status. We generally reverse accrued interest when a loan is placed on non-accrual. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. We restore non-accrual loans to accrual status when past due principal and interest are paid and, in our management’s judgment, are likely to remain current. The total fair value of our non-accrual loans was $0.4 million and less than $0.1 million as of each of March 31,June 30, 2017 and September 30, 2016.2016, respectively.

Income taxes:

We have elected to be treated as a RIC under Subchapter M of the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. In order to be subject to tax as a RIC, we are required to meet certain source of income and asset diversification requirements, as well as timely distribute to our stockholders dividends for U.S. federal income tax purposes of an amount generally at least equal to 90% of investment company taxable income, as defined by the Code and determined without regard to any deduction for dividends paid, for each tax year. We have made and intend to continue to make the requisite distributions to our stockholders, which will generally relieve us from U.S. federal income taxes.

On January 1, 2015, GCIC Equity LLC, or GCIC Equity, elected to be classified as a corporation for U.S. federal income tax purposes. Effective May 2, 2016, GCIC Equity merged with GCIC Holdings, with GCIC Holdings as the surviving LLC. As part of the merger, GCIC Equity elected deemed-sale treatment and the assets of GCIC Equity were treated as sold at fair value for tax purposes. This resulted in U.S. federal income tax expense of $44,000 and state income tax expense of $13,100, each of which was paid in August 2016.

Depending on the level of taxable income earned in a tax year, we may choose to retain taxable income in excess of current year distributions into the next tax year in an amount less than what would trigger payments of U.S. federal income tax under Subchapter M of the Code. We may then be required to incur a


99


4% excise tax on such income. To the extent that we determine that our estimated current year annual taxable income may exceed estimated current year distributions, we accrue excise tax, if any, on estimated excess taxable income as taxable income is earned.

Because federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified within capital accounts in the financial statements to reflect their tax character. For example, permanent differences in classification may result from the treatment of distributions paid from short-term gains as ordinary income dividends for tax purposes. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future.



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Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are subject to financial market risks, including changes in interest rates. Many of the loans in our portfolio have floating interest rates, and we expect that our loans in the future may also have floating interest rates. These loans are usually based on a floating LIBOR and typically have interest rate reset provisions that adjust applicable interest rates under such loans to current market rates on a quarterly basis. The loans that are subject to floating LIBOR are also subject to a minimum base rate, or floor, that we charge on our loans if the current market rates are below the respective floors. As of March 31,June 30, 2017 and September 30, 2016, the weighted average LIBOR floor on the loans subject to floating interest rates was 1.01%1.00% and 1.01%, respectively. In addition, the Credit Facility has a floating interest rate provision based on one-month LIBOR that resets daily, the SMBC Revolver has a floating interest rate provision based on one-month LIBOR that resets monthly, and the Class A and B GCIC 2016 Notes issued as part of the GCIC 2016 Debt Securitization have floating interest rate provisions based on three-month LIBOR that reset quarterly. We expect that other credit facilities into which we enter in the future may have floating interest rate provisions.

Assuming that the interim and unaudited consolidated statement of financial condition as of March 31,June 30, 2017 were to remain constant and that we took no actions to alter our interest rate sensitivity as of such date, the following table shows the annualized impact of hypothetical base rate changes in interest rates.
Change in interest rates 
Increase (decrease) in
interest income
 
Increase (decrease) in
interest expense
 
Net increase
(decrease) in
 investment income
 
Increase (decrease) in
interest income
 
Increase (decrease) in
interest expense
 
Net increase
(decrease) in
 investment income
 (In thousands) (In thousands)
Down 25 basis points $
 $(1,430) $1,430
 $(3,051) $(1,577) $(1,474)
Up 50 basis points 7,042
 2,860
 4,182
 6,191
 3,154
 3,037
Up 100 basis points 12,509
 5,719
 6,790
 12,380
 6,309
 6,071
Up 150 basis points 17,976
 8,579
 9,397
 18,571
 9,463
 9,108
Up 200 basis points 23,444
 11,438
 12,006
 24,762
 12,617
 12,145

Although we believe that this analysis is indicative of our sensitivity to interest rate changes as of March 31,June 30, 2017, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments, including borrowings under the GCIC 2016 Debt Securitization, the Credit Facility, the Revolver, the SMBC Revolver or other borrowings, that could affect net increase in net assets resulting from operations, or net income. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis above.

We may in the future hedge against interest rate fluctuations by using standard hedging instruments such as interest rate swaps, futures, options and forward contracts to the limited extent permitted under the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to the investments in our portfolio with fixed interest rates.



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Item 4: Controls and Procedures.

As of March 31,June 30, 2017 (the end of the period covered by this report), management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Based on that evaluation, our management, including the chief executive officer and chief financial officer, concluded that, at the end of such period, our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in the Company’s periodic reports. There has not been any change in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.



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Part II - Other Information

Item 1: Legal Proceedings.

Golub Capital Investment Corporation, GC Advisors and Golub Capital LLC are not currently subject to any material legal proceedings.

Item 1A: Risk Factors.

None.

Item 2: Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3: Defaults Upon Senior Securities.

None.

Item 4: Mine Safety Disclosures.

None.

Item 5: Other Information.

None.

Item 6: Exhibits.

EXHIBIT INDEX
   
Number Description
   
10.1Third Amendment to Amended and Restated Loan and Servicing Agreement, dated as of May 11, 2017, by and among GCIC Funding LLC, as the borrower; GC Advisors LLC , as the servicer; the Company, as the transferor, the institutional lenders identified on the signature pages thereto, Wells Fargo Bank, N.A., as the swingline lender, collateral agent, account bank, collateral custodian and administrative agent.* 
31.1 Certification of Chief Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.* 
31.2  Certification of Chief Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.* 
32.1  Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* 

_________________
* Filed herewith




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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


 Golub Capital Investment Corporation
   
Dated: May 11,August 9, 2017By/s/ David B. Golub
  David B. Golub
  Chief Executive Officer
  (Principal Executive Officer)
   
Dated: May 11,August 9, 2017By/s/ Ross A. Teune
  Ross A. Teune
  Chief Financial Officer
  (Principal Accounting and Financial Officer)



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