NEW YORK, Feb. 19, 2025 /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 ...

Financial Performance - For the three months ended December 31, 2024, total investment income per share for OBDC was $1.01, while for OBDE it was $1.05[23] - Net investment income per share for OBDC was $0.47, compared to $0.43 for OBDE[23] - As of December 31, 2024, total assets for the combined company were $18.351 billion, with total outstanding debt of $10.082 billion[25] - The combined company had total net assets of $7.792 billion and a net asset value per share of $15.26[25] - The net debt-to-equity ratio for OBDC was 1.19x, while for OBDE it was 1.25x, resulting in a pro forma ratio of 1.20x[25] - The company reported a non-accrual rate of 0.4% of total investments as of December 31, 2024[27] - The top 15 investments represented 32.0% of total investments for OBDC and 28.0% for OBDE[27] Assets Under Management - As of December 31, 2024, the company managed $135.71 billion in assets under management (AUM)[32] - As of December 31, 2024, the diversified lending strategy had $66.8 billion of assets under management[33] - As of December 31, 2024, the technology lending strategy had $24.5 billion of assets under management[33] - As of December 31, 2024, the first lien lending strategy had $4.5 billion of assets under management[33] - As of December 31, 2024, the opportunistic lending strategy had $2.3 billion of assets under management[33] - As of December 31, 2024, the Blue Owl Credit platform's various strategies had $37.6 billion of assets under management[35] Market Environment - The U.S. middle market consists of approximately 200,000 companies, accounting for one-third of private sector GDP[39] - U.S. middle-market companies are expected to continue requiring access to debt capital for refinancing, growth, and acquisitions[39] - Regulatory and structural factors are limiting traditional financing available to U.S. middle-market companies[39] - The company believes the middle-market lending environment provides opportunities for attractive risk-adjusted returns[38] - The private credit market is expected to continue expanding, with an estimated $2.6 trillion of uninvested capital held by private equity firms as of December 31, 2024, driving deal activity[42] - Middle-market companies have shown higher levels of cash flows available to service their debt due to more conservative capital structures post-global credit crisis[44] Investment Strategy - The company focuses on upper middle-market companies with a history of profitability and a high percentage of recurring revenue, avoiding start-ups without sustainable cash flow[55] - The company employs a defensive investment approach, emphasizing long-term credit performance and principal protection through ongoing monitoring of investments[52] - The company seeks to invest in companies with strong competitive positions, analyzing factors such as product quality and customer loyalty[56] - The investment strategy includes a diversified approach, targeting no more than 20% of the portfolio in any single industry classification[63] - The company aims for exits primarily through strategic acquisitions, initial public offerings, or recapitalizations, rather than relying solely on operating cash flows[59] - The investment strategy targets middle-market companies with EBITDA between $10 million and $250 million and annual revenue of $50 million to $2.5 billion[82] Portfolio Composition - The portfolio composition is expected to be primarily debt or income-producing securities, with a focus on "covenant-lite" loans and a lesser allocation to equity investments[73] - As of December 31, 2024, 51% of the first-lien debt is comprised of unitranche loans, which combine features of first-lien and second-lien debt[76] - The company aims to maintain a loan-to-value ratio of 50% or lower for its investments to preserve capital[82] - The investment objective is to generate current income and, to a lesser extent, capital appreciation through favorable risk-adjusted returns[82] - The company may invest up to 30% of its portfolio in non-qualifying portfolio companies, including those outside the United States[83] Risk Management - The investment process includes ongoing portfolio monitoring and evaluation of financial trends to ensure adherence to business plans[70] - The company utilizes a credit watch list to monitor investments and address financial stress before payment defaults occur[71] - The investment strategy includes negotiating covenants to protect capital and manage risk, including affirmative and negative covenants[80] - The company may engage in opportunistic investments to enhance returns, including high-yield bonds and broadly syndicated loans[73] Financial Commitments and Growth - The company had outstanding commitments to fund unfunded investments totaling $1.44 billion as of December 31, 2024, up from $0.95 billion in 2023, indicating a 51.6% increase[88] - The asset coverage ratio was 178% as of December 31, 2024, down from 183% in 2023, but still above the required 150%[100] - The company’s common equity investments increased from $986.7 million in 2023 to $1.24 billion in 2024, marking a 25.7% increase in value[85] Sector Focus - The healthcare technology sector represented 6.2% of the investment portfolio in 2024, up from 5.0% in 2023, indicating a strategic shift towards this industry[90] - The company’s financial services investments increased to 3.5% in 2024 from 2.2% in 2023, reflecting a growing focus on this sector[90] Regulatory and Compliance - The company is regulated as a Business Development Company (BDC) under the 1940 Act, which imposes specific restrictions on transactions and asset acquisitions[149] - The company is subject to regulatory restrictions under the 1940 Act, which may limit its operational flexibility compared to competitors[113] - The company is required to maintain asset coverage ratios to allow for dividend distributions or share repurchases while senior securities remain outstanding[167] - The company must maintain a bond for protection against larceny and embezzlement as part of its BDC obligations[172] - The company is required to designate a chief compliance officer and implement policies to prevent violations of federal securities laws[173] Taxation and Distribution - The company intends to qualify as a RIC and must distribute at least 90% of its investment company taxable income to avoid federal income tax[182] - The company may face a 4% excise tax on undistributed income unless it meets specific distribution requirements[184] - The company is not permitted to make distributions while debt obligations are outstanding unless asset coverage tests are met[189] Interest Rate and Market Risks - The company is subject to financial market risks, including valuation risk, interest rate risk, currency risk, credit risk, and inflation risk[897] - As of December 31, 2024, 96.4% of the company's debt investments based on fair value were floating rates, with a weighted average floor of 0.8%[901] - The company may realize gains or losses from liquidations of investments to meet distribution requirements, potentially leading to larger capital gain distributions[191] - The company may utilize hedging instruments such as interest rate swaps, futures, options, and forward contracts to mitigate exposure to interest rate fluctuations[904] - Currency investments and borrowings expose the company to foreign exchange rate movements, with potential hedging strategies including forward contracts and cross currency swaps[905] - Persistent inflationary pressures are expected to affect the profit margins of the company's portfolio companies in the near to medium-term[908]

Wall Street analysts expect Blue Owl Capital Corporation (OBDC) to post quarterly earnings of $0.47 per share in its upcoming report, which indicates a year-over-year decline of 7.8%. Revenues are expected to be $395.59 million, down 3.8% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company reveals its earnings, it is ...

Business development company Blue Owl Capital Corporation (OBDC) is set to report fourth-quarter 2024 results on Feb. 19, 2025, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at 46 cents per share and the same for revenues is pinned at $395.59 million. See the Zacks Earnings Calendar to stay ahead of market-making news.The fourth-quarter earnings estimate remained stable over the past 60 days. However, the bottom-line prediction indicates a ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Blue Owl Capital Corporation (OBDC) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be release ...

NEW YORK, Jan. 22, 2025 /PRNewswire/ -- Blue Owl Capital Corporation (NYSE: OBDC) ("OBDC") today announced it will release its financial results for the fourth quarter and fiscal year ended December 31, 2024 on Wednesday, February 19, 2025 after market close. OBDC invites all interested persons to its webcast / conference call on Thursday, February 20, 2025 at 10:00 a.m. Eastern Time to discuss its fourth quarter and fiscal year ended December 31, 2024 financial results. Conference Call Information: The con ...

Creates the second largest publicly traded BDC by total assetsNEW YORK, Jan. 13, 2025 /PRNewswire/ -- Blue Owl Capital Corporation (NYSE: OBDC) today announced the closing of its 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 $18.6 billion of total assets at fair value and investments in 232 portfolio companies, on a pro forma combined basis as of September 3 ...

NEW YORK, Jan. 8, 2025 /PRNewswire/ -- Blue Owl Capital Corporation (NYSE: OBDC) and Blue Owl Capital Corporation III (NYSE: OBDE) today announced that each company obtained shareholder approval of all proposals related to the previously announced merger between the two companies at their respective shareholder meetings held today. Shareholders voted overwhelmingly in favor of the proposed transaction, with over 97% of OBDC votes cast and nearly 100% of OBDE votes cast, respectively, voting in favor of the ...

NEW YORK, Jan. 3, 2025 /PRNewswire/ -- Blue Owl Capital Corporation (NYSE: OBDC) and Blue Owl Capital Corporation III (NYSE: OBDE) today announced that leading independent proxy advisory firms, Institutional Shareholder Services ("ISS") and Glass Lewis & Co. ("Glass Lewis"), have recommended that OBDE shareholders vote "FOR" the pending merger between OBDC and OBDE, and that OBDC shareholders vote "FOR" both proposals associated with the merger at upcoming special meetings on January 8, 2025. In its report ...

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