Goldman Sachs BDC hits new 1-yr high after announced merger with affiliate

Goldman Sachs BDC

09/12/2019 20:30

** Goldman Sachs BDC Inc  GSBD.N  shares rise 1.9% to $21.28
after business development cos managed by Goldman Sachs Asset
Management (GSAM) announce merger agreement
    ** Under agreement announced early Mon, GSBD will issue
.9939 of a newly issued share for each Goldman Sachs Middle
Market Lending Corp. (MMLC) share outstanding  urn:newsml:reuters.com:*:nBw9XTJBxa
    ** Based on GSBD last sale on Fri, total consideration paid
for MMLC is ~$1 bln, representing an 11% premium to MMLC's NAV
at end-Sept
    ** Transaction will result in approx 5.5% accretion to
GSBD's NAV based on GSBD's and MMLC's NAVs at end-Sept, per
statement
    ** Merger, which will more than double size of GSBD,
expected to occur Q2 2020
    ** In addition, GSBD announces potential incentive fees cut,
and says its board approved special distributions of 15 cents/sh
    ** Avg analyst rating among 5 analysts covering GSBD is
"hold"; median PT $20.50 (Refinitiv data)
    ** With Mon gain, stock up 15.8% YTD

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