StockNews.AI
OBDC
StockNews.AI
181 days

Blue Owl Capital Corporation Reports Full Year Results and Fourth Quarter Net Investment Income Per Share of $0.47 and Net Asset Value Per Share of $15.26

1. Fourth quarter NII per share was $0.47, outpacing regular dividend by 27%. 2. OBDC declared a supplemental dividend of $0.05 per share this quarter. 3. Closed merger with OBDE, making OBDC second largest BDC with $18 billion assets. 4. New investment commitments reached $7.3 billion in 2024, up significantly from 2023. 5. Portfolio credit quality remained stable, despite a slight drop in NAV.

Earnings
-0.7%Current Return
VS
-0.42%S&P 500
$15.6402/19 05:24 PM EDTEvent Start
$15.5302/20 11:52 PM EDTLatest Updated
35m saved
Insight
Article

FAQ

Why Bullish?

Strong NII and stable dividends are positive signals for investor confidence. Previous announcements of robust financial results often resulted in price upticks.

How important is it?

The merger and strong financials directly enhance OBDC's market position and investor outlook, likely driving stock interest.

Why Short Term?

The immediate impact from dividends and merger benefits will be felt quickly. Past examples show positive price impacts often occur following significant announcements.

Related Companies

OBDEOWL
, /PRNewswire/ -- Blue Owl Capital Corporation (NYSE: OBDC, or the "Company") today announced financial results for its full year and fourth quarter ended December 31, 2024. FOURTH QUARTER 2024 HIGHLIGHTS Fourth quarter net investment income ("NII") per share of $0.47, in-line with the prior quarter and exceeding the regular dividend by 27% Based on OBDC's supplemental dividend framework, the Board of Directors (the "Board") declared a fourth quarter supplemental dividend of $0.05 per share Total dividends for the fourth quarter were $0.42 per share, representing an annualized dividend yield of 11.0% based on fourth quarter net asset value ("NAV") per share NAV per share of $15.26, as compared with $15.28 as of September 30, 2024, driven by unrealized losses from credit marks in the portfolio, partially offset by over-earning of the base dividend New investment commitments for the fourth quarter totaled $1.7 billion, offset by $1.6 billion of sales and repayments, as compared with $1.2 billion of new investment commitments and $1.1 billion of sales and repayments for the three months ended September 30, 2024. The weighted average total yield of debt and income producing investments was 11.1% at fair value Investments on non-accrual decreased to 0.4% of the portfolio at fair value, as compared with 0.6% as of September 30, 2024 "Our fourth quarter results concluded another strong year for OBDC, delivering a 12.4% annualized return on equity, supported by continued strong portfolio performance and robust origination activity," commented Craig W. Packer, Chief Executive Officer. "Our portfolio has demonstrated resilience and stable credit quality over the past year, and we expect to build on our momentum in 2025 by leveraging the benefits of enhanced scale resulting from our completed merger with OBDE." Merger CloseSubsequent to quarter-end, on January 13, 2025, OBDC closed the previously announced merger with Blue Owl Capital Corporation III ("OBDE"), with OBDC as the surviving company. This merger now makes OBDC the second largest externally-managed, publicly traded BDC by total assets with over $18 billion of total assets at fair value, on a pro forma combined basis as of December 31, 2024. At-the-Market ProgramThe Company will enter into an at-the-market ("ATM") program under which it may issue up to $750 million of its common stock. The ATM program was approved by the Board and will be filed in the coming days. Dividend DeclarationsThe Company's Board declared a first quarter 2025 regular dividend of $0.37 per share for stockholders of record as of March 31, 2025, payable on or before April 15, 2025. The Board also declared a fourth quarter 2024 supplemental dividend of $0.05 per share for stockholders of record as of February 28, 2025, payable on or before March 17, 2025. SELECT FINANCIAL HIGHLIGHTS As of and for the three months ended ($ in thousands, except per share amounts) December 31, 2024 September 30, 2024 December 31, 2023 Net investment income per share $                  0.47 $                 0.47 $                 0.51 Net realized and unrealized gains (and losses) per share $                 (0.08) $                (0.13) $                (0.03) Net income per share $                  0.40 $                 0.35 $                 0.48 Base dividend declared from net investment income per share $                  0.37 $                 0.37 $                 0.35 Supplemental dividend declared from net investment income per share $                  0.05 $                 0.05 $                 0.08 Total investments at fair value $       13,194,545 $      13,447,536 $      12,713,348 Total debt outstanding $         7,457,702 $        7,741,075 $        7,077,088 Net assets $         5,952,841 $        5,961,849 $        6,021,393 Net asset value per share $                15.26 $               15.28 $               15.45 Net debt-to-equity 1.19x 1.23x 1.09x PORTFOLIO COMPOSITION As of December 31, 2024, the Company had investments in 227 portfolio companies across 30 industries, with an aggregate portfolio size of $13.2 billion at fair value and an average investment size of $58.1 million at fair value. December 31, 2024 September 30, 2024 ($ in thousands) Fair Value % of Total Fair Value % of Total Portfolio composition: First-lien senior secured debt investments $      9,974,880 75.6 % $    10,200,136 75.9 % Second-lien senior secured debt investments 706,800 5.4 % 731,204 5.4 % Unsecured debt investments 301,956 2.3 % 307,164 2.3 % Preferred equity investments 371,744 2.8 % 389,920 2.9 % Common equity investments 1,543,689 11.7 % 1,422,765 10.6 % Joint ventures 295,476 2.2 % 396,347 2.9 % Total investments $    13,194,545 $    13,447,536 December 31, 2024 September 30, 2024 Number of portfolio companies 227 219 Percentage of debt investments at floating rates 96.4 % 96.3 % Percentage of senior secured debt investments 81.0 % 81.3 % Weighted average spread over base rate of all floating rate debt investments 6.0 % 6.2 % Weighted average total yield of accruing debt and income-producing securities at fair value 11.1 % 11.5 % Weighted average total yield of accruing debt and income-producing securities at cost 11.2 % 11.6 % Percentage of investments on non-accrual of the portfolio at fair value 0.4 % 0.6 % PORTFOLIO AND INVESTMENT ACTIVITY Full Year For the full year ended December 31, 2024, new investment commitments totaled $7.3 billion across 93 new portfolio companies and 68 existing portfolio companies. This compares to $2.2 billion for the full year ended December 31, 2023 across 32 new portfolio companies and 34 existing portfolio companies. For the full year ended December 31, 2024, the principal amount of new investments funded was $5.9 billion. For this period, the Company had $5.1 billion aggregate principal amount in sales and repayments. For the full year ended December 31, 2023, the principal amount of new investments funded was $1.7 billion. For this period, the Company had $2.2 billion aggregate principal amount in sales and repayments. Fourth Quarter For the three months ended December 31, 2024, new investment commitments totaled $1.7 billion across 27 new portfolio companies and 17 existing portfolio companies. This compares to $1.2 billion for the three months ended September 30, 2024 across 23 new portfolio companies and 14 existing portfolio companies. For the three months ended December 31, 2024, the principal amount of new investments funded was $1.6 billion. For this period, the Company had $1.6 billion aggregate principal amount in sales and repayments. For the three months ended September 30, 2024, the principal amount of new investments funded was $1.1 billion. For this period, the Company had $1.1 billion aggregate principal amount in sales and repayments. For the Years Ended December 31, ($ in thousands) 2024 2023 2022 New investment commitments Gross originations $       7,384,171 $       2,165,911 $    1,997,087 Less: Sell downs (53,334) (10,803) (224,665) Total new investment commitments $       7,330,837 $       2,155,108 $    1,772,422 Principal amount of investments funded: First-lien senior secured debt investments $       5,102,264 $       1,523,503 $       788,718 Second-lien senior secured debt investments 30,000 — 6,883 Unsecured debt investments 132,135 — 90,451 Preferred equity investments 3,079 36,377 90,110 Common equity investments 324,269 86,457 131,777 Joint ventures(1) 337,596 34,125 69,125 Total principal amount of investments funded $       5,929,343 $       1,680,462 $    1,177,064 Principal amount of investments sold or repaid: First-lien senior secured debt investments $      (3,577,170) $      (2,069,540) $  (1,116,583) Second-lien senior secured debt investments (1,026,330) (97,713) (29,800) Unsecured debt investments (152,427) (193) (31,427) Preferred equity investments (61,575) (6,952) (22,843) Common equity investments (73,268) (195) (7,350) Joint ventures(1) (191,151) — — Total principal amount of investments sold or repaid $     (5,081,921) $     (2,174,593) $  (1,208,003) Number of new investment commitments in new portfolio companies(2) 93 32 52 Average new investment commitment amount in new portfolio companies $           56,012 $           53,397 $        22,757 Weighted average term for new debt investment commitments (in years) 5.4 5.6 5.6 Percentage of new debt investment commitments at floating rates 98.1 % 96.2 % 95.1 % Percentage of new debt investment commitments at fixed rates 1.9 % 3.8 % 4.9 % Weighted average interest rate of new debt investment commitments(3) 9.7 % 11.7 % 10.4 % Weighted average spread over applicable base rate of new floating rate debt investment commitments 5.3 % 6.3 % 6.9 % ________________ (1) This was disclosed as "Investment funds and vehicles" as of December 31, 2022. (2) Number of new investment commitments represents commitments to a particular portfolio company. (3) For the years ended December 31, 2024, 2023 and 2022, assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month SOFR, which was 4.31%, 5.33% and 4.59% as of December 31, 2024, 2023 and 2022, respectively. For the Three Months Ended ($ in thousands) December 31, 2024 September 30, 2024 New investment commitments Gross originations $              1,695,507 $                1,151,668 Less: Sell downs (15,834) — Total new investment commitments $              1,679,673 $                1,151,668 Principal amount of investments funded: First-lien senior secured debt investments $              1,114,927 $                1,044,951 Second-lien senior secured debt investments 20,000 — Unsecured debt investments — — Preferred equity investments 366 1,097 Common equity investments 215,476 13,318 Joint ventures 271,970 21,437 Total principal amount of investments funded $              1,622,739 $                1,080,803 Principal amount of investments sold or repaid: First-lien senior secured debt investments $            (1,265,281) $              (1,027,432) Second-lien senior secured debt investments (34,500) (65,812) Unsecured debt investments (5,450) — Preferred equity investments (9,521) (21,360) Common equity investments (73,253) (15) Joint ventures (191,151) — Total principal amount of investments sold or repaid $            (1,579,156) $              (1,114,619) Number of new investment commitments in new portfolio companies(1) 27 23 Average new investment commitment amount in new portfolio companies $                    44,561 $                     42,251 Weighted average term for new debt investment commitments (in years) 5.3 4.4 Percentage of new debt investment commitments at floating rates 99.4 % 98.8 % Percentage of new debt investment commitments at fixed rates 0.6 % 1.2 % Weighted average interest rate of new debt investment commitments(2) 9.5 % 9.7 % Weighted average spread over applicable base rate of new floating rate debt investment commitments 5.2 % 5.1 % ________________ (1) Number of new investment commitments represents commitments to a particular portfolio company. (2) For the three months ended December 31, 2024 and September 30, 2024 assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month SOFR, which was 4.31% and 4.59% as of December 31, 2024 and September 30, 2024, respectively. RESULTS OF OPERATIONS FOR THE FULL YEAR AND QUARTER ENDED DECEMBER 31, 2024 Investment IncomeInvestment income increased to $1.60 billion for the year ended December 31, 2024 from $1.58 billion for the year ended December 31, 2023, primarily due to higher dividend income and other income, which was partially offset by a decrease in the yield of our debt investment portfolio. Dividend income increased period-over-period primarily due to an increase in dividends earned from the Company's controlled, affiliated and non-controlled, affiliated equity investments. Other income increased period-over-period primarily due to repayment fees and accelerated amortization of upfront fees from unscheduled paydowns which are non-recurring in nature. The Company expects that investment income will vary based on a variety of factors including the pace of originations and repayments. Investment income decreased to $394.4 million for the three months ended December 31, 2024, from $411.2 million for the three months ended December 31, 2023. ExpensesTotal expenses increased to $844.1 million for the year ended December 31, 2024 from $815.7 million for the year ended December 31, 2023, primarily due to an increase in interest expense and average daily borrowings. As a percentage of total assets, management fees, incentive fees, professional fees, directors' fees and other general and administrative expenses remained relatively consistent period-over-period. Total expenses increased to $209.7 million for the three months ended December 31, 2024 from $207.9 million for the three months ended December 31, 2023. Liquidity and Capital ResourcesAs of December 31, 2024, the Company had $505.7 million in cash and restricted cash, $7.6 billion in total principal value of debt outstanding, including $2.6 billion of undrawn capacity on the Company's credit facilities and $4.8 billion of unsecured notes. The funding mix was composed of 54% secured and 46% unsecured borrowings as of December 31, 2024 on a committed basis. The Company was in compliance with all financial covenants under its credit facilities as of December 31, 2024. The Company has analyzed cash and cash equivalents, availability under its credit facilities, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and believes its liquidity and capital resources are sufficient to take advantage of market opportunities in the current economic climate. CONFERENCE CALL AND WEBCAST INFORMATION Conference Call Information:The conference call will be broadcast live on February 20, 2025 at 10:00 a.m. Eastern Time on the Events section of OBDC's website at www.blueowlcapitalcorporation.com. Please visit the website to test your connection before the webcast. Participants are also invited to access the conference call by dialing one of the following numbers: Domestic: (877) 737-7048 International: +1 (201) 689-8523 All callers will need to reference "Blue Owl Capital Corporation" once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. Replay Information:An archived replay will be available for 14 days via a webcast link located on the Events section of OBDC's website, and via the dial-in numbers listed below: Domestic: (877) 660-6853 International: +1 (201) 612-7415 Conference ID: 13750520 ABOUT BLUE OWL CAPITAL CORPORATION Blue Owl Capital Corporation (NYSE: OBDC) is a specialty finance company focused on lending to U.S. middle-market companies. 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. Certain information contained herein may constitute "forward-looking statements" that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about OBDC, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond OBDC's control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in OBDC's filings with the SEC. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which OBDC makes them. OBDC does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law. INVESTOR CONTACTS Investor Contact:BDC Investor RelationsMichael Mosticchio[email protected] Media Contact:Prosek PartnersJosh Clarkson[email protected] FINANCIAL HIGHLIGHTS For the Three Months Ended ($ in thousands, except per share amounts) December 31, 2024 September 30, 2024 December 31, 2023 Investments at Fair Value $           13,194,545 $        13,447,536 $           12,713,348 Total Assets $           13,865,564 $        14,090,780 $           13,511,396 Net Asset Value Per Share $                    15.26 $                 15.28 $                   15.45 Investment Income $                394,392 $             406,029 $               411,227 Net Investment Income $                184,246 $             184,912 $               199,023 Net Income $                154,885 $             135,358 $               188,970 Net Investment Income Per Share $                      0.47 $                   0.47 $                    0.51 Net Realized and Unrealized Gains (and Losses) Per Share $                     (0.08) $                  (0.13) $                   (0.03) Net Income Per Share $                      0.40 $                   0.35 $                    0.48 Distributions Declared from Net Investment Income Per Share $                      0.37 $                   0.37 $                    0.35 Supplemental Distributions Declared from Net Investment Income Per Share $                      0.05 $                   0.05 $                    0.08 Weighted Average Yield of Accruing Debt and Income Producing Securities at Fair Value 11.1 % 11.5 % 12.4 % Weighted Average Yield of Accruing Debt and Income Producing Securities at Amortized Cost 11.2 % 11.6 % 12.5 % Percentage of Debt Investments at Floating Rates 96.4 % 96.3 % 97.4 % CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Amounts in thousands, except share and per share amounts) December 31, 2024 December 31, 2023 Assets Investments at fair value Non-controlled, non-affiliated investments (amortized cost of $11,511,987 and $11,271,962, respectively) $                11,451,457 $              11,264,956 Non-controlled, affiliated investments (amortized cost of $233,105 and $19,004, respectively) 235,060 19,988 Controlled, affiliated investments (amortized cost of $1,424,298 and $1,341,236, respectively) 1,508,028 1,428,404 Total investments at fair value (amortized cost of $13,169,390 and $12,632,202, respectively) 13,194,545 12,713,348 Cash (restricted cash of $82,387 and $87,067, respectively) 505,692 658,702 Foreign cash (cost of $8,539 and $946, respectively) 8,464 956 Interest receivable 105,881 112,260 Receivable from a controlled affiliate 16,970 22,978 Prepaid expenses and other assets 34,012 3,152 Total Assets $                13,865,564 $              13,511,396 Liabilities Debt (net of unamortized debt issuance costs of $84,363 and $81,492, respectively) $                  7,457,702 $                 7,077,088 Distribution payable 144,381 136,407 Management fee payable 49,058 47,711 Incentive fee payable 39,082 42,217 Payables to affiliates 6,083 3,835 Accrued expenses and other liabilities 216,417 182,745 Total Liabilities 7,912,723 7,490,003 Commitments and contingencies (Note 7) Net Assets Common shares $0.01 par value, 1,000,000,000 shares authorized; 390,217,304 and 389,732,868 shares issued and outstanding, respectively 3,902 3,897 Additional paid-in-capital 5,919,539 5,924,002 Accumulated undistributed (overdistributed) earnings 29,400 93,494 Total Net Assets 5,952,841 6,021,393 Total Liabilities and Net Assets $                13,865,564 $              13,511,396 Net Asset Value Per Share $                         15.26 $                       15.45 CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share amounts) For the Years Ended December 31, 2024 2023 2022 Investment Income Investment income from non-controlled, non-affiliated investments: Interest income $        1,168,652 $        1,209,536 $           931,870 Payment-in-kind ("PIK") interest income 172,852 169,763 113,256 Dividend income 78,482 72,936 52,422 Other income 22,451 14,755 18,514 Total investment income from non-controlled, non-affiliated investments 1,442,437 1,466,990 1,116,062 Investment income from non-controlled, affiliated investments: Interest income 1,038 — — Payment-in-kind ("PIK") interest income 1,128 — — Dividend income 932 252 — Other income 40 — — Total investment income from non-controlled, affiliated investments: 3,138 252 — Investment income from controlled, affiliated investments: Interest income 30,308 20,174 8,206 Payment-in-kind ("PIK") interest income 1,666 1,934 — Dividend income 118,538 91,802 77,047 Other Income 671 942 689 Total investment income from controlled, affiliated investments 151,183 114,852 85,942 Total Investment Income 1,596,758 1,582,094 1,202,004 Expenses Interest expense 464,915 436,306 307,539 Management fees 193,570 191,622 188,755 Performance based incentive fees 157,193 159,857 118,091 Professional fees 13,602 15,532 14,709 Directors' fees 1,280 1,280 1,092 Other general and administrative 13,495 11,127 9,290 Total Operating Expenses 844,055 815,724 639,476 Net Investment Income (Loss) Before Taxes 752,703 766,370 562,528 Income tax expense (benefit) 11,646 12,759 5,810 Net Investment Income (Loss) After Taxes $           741,057 $           753,611 $           556,718 Net Realized and Change in Unrealized Gain (Loss) Net change in unrealized gain (loss): Non-controlled, non-affiliated investments $           (45,932) $             90,497 $         (133,980) Non-controlled, affiliated investments 951 1,033 (49) Controlled, affiliated investments (3,438) 213 45,602 Translation of assets and liabilities in foreign currencies (1,041) 5,808 (2,118) Income tax (provision) benefit (709) (4,605) (3,964) Total Net Change in Unrealized Gain (Loss) (50,169) 92,946 (94,509) Net realized gain (loss): Non-controlled, non-affiliated investments $           (62,453) $           (52,003) $               5,171 Non-controlled, affiliated investments 1,827 — — Controlled affiliated investments (25,771) — — Foreign currency transactions (9,511) (1,242) (1,025) Total Net Realized Gain (Loss) (95,908) (53,245) 4,146 Total Net Realized and Change in Unrealized Gain (Loss) (146,077) 39,701 (90,363) Net Increase (Decrease) in Net Assets Resulting from Operations $           594,980 $           793,312 $           466,355 Earnings Per Share - Basic and Diluted $                 1.53 $                 2.03 $                 1.18 Weighted Average Shares Outstanding - Basic and Diluted 390,068,596 390,104,585 394,006,852 SOURCE Blue Owl Capital Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Related News