1. OBDC reported strong Q4 results, emphasizing portfolio strength. 2. Merger with OBDE enhances liquidity and operational efficiencies. 3. Combined entity increases total investments to $17.4 billion. 4. Net investment income per share for OBDC at $0.47. 5. Gross debt levels for OBDC reflect industry risk management.
The merger and strong performance position OBDC positively, reminiscent of past successful mergers.
The results directly influence investor perception and stock performance projections.
The benefits from increased scale and efficiency are likely to manifest over time.
The Company has elected to provide these results in connection with the closing of the merger with Blue Owl Capital Corporation III ("OBDE") on January 13, 2025.
"OBDC's and OBDE's standalone fourth quarter performance reflects the consistent strength of our portfolios and positive momentum heading into 2025," commented Craig W. Packer, Chief Executive Officer of OBDC. "The successful closing of the merger subsequent to quarter end further improves our ability to deliver attractive risk-adjusted returns to all shareholders. The increased scale of the combined company positions OBDC to enhance its liquidity profile, achieve lower costs of financing and generate immediate operational efficiencies."
For the Three Months Ended December 31, 2024
($ in millions, except per share amounts)
| Actual (unaudited) OBDC | Actual (unaudited) OBDE | |
|---|---|---|
| Total investment income per share | $ 1.01 | $ 1.05 |
| Net investment income per share | $ 0.47 | $ 0.43 |
| Net realized/unrealized gain/(loss) per share | $ (0.08) | $ (0.08) |
| Earnings gain/(loss) per share | $ 0.39 | $ 0.35 |
| Return on equity1 | 12.3 % | 11.3 % |
| Actual (unaudited) OBDC | Actual (unaudited) OBDE | Pro forma (unaudited) OBDC |
|---|---|---|
| Cash, cash equivalents and restricted cash | $ 514 | $ 725 |
| Total assets | $ 13,852 | $ 18,337 |
| Total outstanding debt | $ 7,579 | $ 10,082 |
| Total committed debt | $ 10,271 | $ 13,373 |
| Total net assets | $ 5,953 | $ 7,792 |
| Net asset value per share | $ 15.26 | $ 15.26 |
| Net debt-to-equity | 1.19x | 1.20x |
| Funding Type | OBDC | OBDE | Combined |
|---|---|---|---|
| Revolving credit facility | 29.1 % | 22.6 % | 27.6 % |
| CLO | 21.5 % | 8.4 % | 18.5 % |
| SPV facility | 2.9 % | 42.7 % | 12.2 % |
| Unsecured notes | 46.5 % | 26.3 % | 41.8 % |
| Actual (unaudited) OBDC | Actual (unaudited) OBDE | Pro forma (unaudited) OBDC |
|---|---|---|
| Total investments | $ 13,195 | $ 17,417 |
| Top 15 investments | 32 % | 29 % |
| Top 25 investments | 44 % | 40 % |
| Number of portfolio companies | 227 | 236 |
| Average position size | 0.4 % | 0.4 % |
| First lien senior secured debt investments | 75.6 % | 77.9 % |
| Industry | OBDC | OBDE | Combined |
|---|---|---|---|
| Internet software and services | 10.5 % | 11.1 % | |
| Insurance | 7.6 % | 8.3 % | |
| Food and beverage | 7.3 % | 6.8 % | |
| Healthcare providers and services | 6.3 % | 6.8 % | |
| Healthcare technology | 6.2 % | 6.5 % |
The preliminary financial estimates provided herein have been prepared by, and are the responsibility of, the Company's management. Neither KPMG LLP, the Company's independent registered public accounting firm, nor any other independent accountants, have audited, reviewed, compiled, or performed any procedures with respect to the accompanying preliminary financial data.
These estimates are subject to the completion of the Company's financial closing procedures and are not a comprehensive statement of our financial results as of December 31, 2024. Actual results may differ materially from these estimates as a result of the completion of the period and the Company's financial closing procedures, final adjustments and other developments which may arise between now and the time that the Company's financial results are finalized.
Blue Owl Capital Corporation (NYSE: OBDC) is a specialty finance company focused on lending to U.S. middle-market companies. As of December 31, 2024, on a pro forma combined basis with OBDE, OBDC had investments in 236 portfolio companies with an aggregate fair value of $17.4 billion. OBDC has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. OBDC is externally managed by Blue Owl Credit Advisors LLC, an SEC-registered investment adviser that is an indirect affiliate of Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) and is a part of Blue Owl's Credit platform.
Investor Contact: BDC Investor Relations Michael Mosticchio
Email: [email protected]
Media Contact: Prosek Partners Josh Clarkson
Email: [email protected]
SOURCE Blue Owl Capital Corporation