This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Golub Capital's CEO Discusses Q1 2011 Results - Earnings Call Transcript

Let me shift now and give you some color on the current market environment and what we’re seeing in terms of economic trends. Let me talk first about deal flow. We've seen a very significant increase in deal flow over the last two months March, April and we expect new originations and growth in total investments to be robust in the quarter ended June 30th. Why is that well to be the increase in deal flows the result a couple of things it’s a pickup in middle market M&A activity and it’s also a pickup in opportunistic re-financings and in dividend recaps. To give you a data point on this during the month of April we invested over $32 million in new middle market deals that’s the same pieces are robust December 31, 2010 quarter.

Moving on to a second element deal pricing in the structure. This been a lot written in the media and the press about how in liquid credit markets we’ve seen such strong inflows into high yield bunds in prime refunds that the liquidity it’s what high-yielding broadly-syndicated loan markets toward tighter spreads and higher leverage. I think I recently read that the high yield market average new issue is now between 6.5% and 7% in yield remarkable level. The middle markets been insulated from these trends but it’s not immune, new middle market transactions we’re seeing traditional senior debt pricing now in the 450 to 600 range that’s down about 50 basis points we’re seeing LIBOR flows in the 125 to 150 range and that’s down a little bit maybe 25 basis points. We’re seeing the main pricing in the 12 to 13% range again that’s down about 50 basis points in some cases in some cases up to a point.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs