Financial Data and Key Metrics Changes - Blue Owl Capital Corporation reported a net investment income (NII) of $0.48 per share, an increase of one cent from the previous quarter [6] - The net asset value (NAV) per share at the end of the quarter was $15.36, reflecting a year-over-year increase of $0.10 [18] - The company achieved an annualized return on equity (ROE) of 12.6%, marking the sixth consecutive quarter of double-digit ROE [7][27] - Shareholders received a total dividend of $0.43 for the quarter, which includes a regular dividend of $0.37 and a supplemental dividend of $0.06 [6] Business Line Data and Key Metrics Changes - Total portfolio investments reached $13.3 billion, with outstanding debt of $7.5 billion and total net assets of $6 billion [18] - The company had $3.3 billion in originations, offset by $1.1 billion in repayments, resulting in a leverage ratio of 1.2 times, near the high end of the target range [19] - The average interest coverage across the portfolio remained stable at approximately 1.6 times [21] Market Data and Key Metrics Changes - The public BDC market environment has been solid, with BDC equities trading at a valuation premium to historical averages [7] - The merger with OBDE is expected to add approximately $4.3 billion of investments to OBDC's portfolio, bringing total investments to approximately $17.7 billion [10] Company Strategy and Development Direction - The merger with OBDE is viewed as a strategic opportunity to streamline the BDC platform and enhance scale, providing long-term value to shareholders [4][9] - The combined company aims to improve trading liquidity, diversify the portfolio, and access lower-cost debt financing [12][13] - The company continues to focus on direct lending solutions to U.S. sponsor-backed upper-middle market companies, emphasizing diversification by borrower and sector [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience despite increased competition in the direct lending market and signs of stabilization in spreads [23][24] - The company is well-positioned to take advantage of opportunities arising from market volatility and is focused on maintaining appropriate levels of structural protection in documentation and capital structures [25][26] Other Important Information - The merger is subject to customary closing conditions, including shareholder approval, and is expected to close in the first quarter of 2025 [17] - The company plans to continue declaring and paying regular and supplemental dividends post-merger, maintaining a yield of approximately 9.5% [16] Q&A Session All Questions and Answers Question: Future Deal Commitments and M&A Activity - Management indicated that the mix of new and existing companies in deal commitments is expected to remain balanced, with potential for more new names as M&A activity picks up [29][30] Question: Synergies from the Merger - Management expects operational synergies of about $5 million immediately post-merger, with potential for NII accretion over time [56] Question: Borrowing Cost Impact from the Merger - Management anticipates a tightening of borrowing costs by approximately 10 to 20 basis points due to increased scale and improved access to capital [40][41] Question: Portfolio Strategy Post-Merger - Management confirmed that there will be no change in the core strategy, focusing on high-quality, sponsor-backed upper-middle market lending [49][65] Question: Sourcing Advantages from Blue Owl Platform - The merger is expected to enhance sourcing capabilities, providing more opportunities without changing the existing strategy [52][65]

| --- | --- | |-----------------------------------------------------|-------| | June 30, 2024 | | | Blue Owl | | | Capital Corporation Quarterly Earnings Presentation | | Review of Q2 2024 Earnings Summary Portfolio Update • Net asset value per share of $15.36, down from $15.47 as of 3/31/2024 • Net investment income per share of $0.48, up from $0.47 as of 3/31/2024 • Net income per share of $0.31, down from $0.47 as of 3/31/2024 • Annualized ROE on both net investment income and net income of 12.6%1 and 8. ...

Core Insights - Blue Owl Capital Corporation reported revenue of $396.76 million for the quarter ended June 2024, reflecting a year-over-year increase of 0.6% and a surprise of +2.04% over the Zacks Consensus Estimate of $388.84 million [1] - The company's EPS was $0.48, unchanged from the same quarter last year, with an EPS surprise of +2.13% compared to the consensus estimate of $0.47 [1] Financial Performance Metrics - Investment income from non-controlled, non-affiliated investments showed strong performance with interest income at $287.36 million, exceeding the average estimate of $284.29 million [3] - Other income from non-controlled, non-affiliated investments was reported at $5.99 million, surpassing the average estimate of $4.69 million [3] - Payment-in-kind interest income from non-controlled, non-affiliated investments reached $44.27 million, above the estimated $40.73 million [4] - Dividend income from non-controlled, non-affiliated investments was reported at $16.31 million, which was below the average estimate of $21.33 million [4] - Interest income from controlled, affiliated investments was $7.17 million, slightly below the average estimate of $7.95 million [4] - Other income from controlled, affiliated investments was $0.18 million, marginally below the average estimate of $0.19 million [5] Stock Performance - Over the past month, shares of Blue Owl Capital Corporation have returned -3.7%, compared to a -5.9% change in the Zacks S&P 500 composite [5] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [5]

分组1 - Blue Owl Capital Corporation reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, with a year-over-year comparison showing no change [1] - The company achieved revenues of $396.76 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.04% and showing an increase from $394.22 million a year ago [2] - Over the last four quarters, Blue Owl Capital Corporation has surpassed consensus EPS estimates three times and topped revenue estimates four times [2] 分组2 - The stock has added approximately 0.3% since the beginning of the year, underperforming compared to the S&P 500's gain of 9.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $389.93 million, and for the current fiscal year, it is $1.88 on revenues of $1.57 billion [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 39% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Position - Total assets as of June 30, 2024, amounted to $13,866,620,000, an increase from $13,511,396,000 as of December 31, 2023[9] - Total liabilities increased to $7,872,336,000 from $7,490,003,000, showing a rise in financial obligations[9] - Net assets decreased to $5,994,284,000 from $6,021,393,000, indicating a slight decline in overall net worth[9] - Cash and cash equivalents decreased to $377,914,000 from $658,702,000, indicating a reduction in liquidity[9] - Net asset value per share as of June 30, 2024, was $15.36, down from $15.45 at the end of 2023[9] Investment Performance - Total investments at fair value reached $13,341,982,000, up from $12,713,348,000, reflecting a growth in investment portfolio[9] - Total investment income for Q2 2024 was $396,760, a slight increase from $394,223 in Q2 2023, representing a 0.4% growth[11] - Net investment income after taxes for the six months ended June 30, 2024, was $371,899, compared to $364,536 for the same period in 2023, reflecting a 2.3% increase[11] - The company reported a net increase in net assets resulting from operations of $122,220 for Q2 2024, down from $195,562 in Q2 2023, indicating a decrease of 37.4%[11] - Earnings per share for Q2 2024 were $0.31, compared to $0.50 in Q2 2023, representing a decline of 38%[11] Operating Expenses - Total operating expenses for Q2 2024 were $205,216, slightly up from $205,167 in Q2 2023, showing a marginal increase of 0.02%[11] - Management fee payable increased to $48,005,000 from $47,711,000, indicating higher management costs[9] Economic Outlook - The company anticipates potential impacts from economic downturns and market volatility on future performance[4] Investment Strategy - The company is actively managing its investment portfolio with a focus on senior secured loans, which are generally considered lower risk compared to unsecured loans[32] - Blue Owl Capital Corporation's diversified investment strategy includes a mix of loans across different maturity dates, enhancing its risk management profile[30] - The company is actively pursuing market expansion and strategic acquisitions to enhance its portfolio[60] Sector Investments - Blue Owl Capital's investment portfolio includes a first lien senior secured loan to Spotless Brands, LLC with an amortized cost of $47,171,000 and a fair value of $47,877,000, accounting for 0.8% of net assets[14] - The investment in Rocket BidCo, Inc. (dba Recochem) amounts to $193,567,000, with a fair value of $193,550,000, contributing 3.2% to net assets[18] - The investment in Food and Beverage sector shows an amortized cost of $415,235, with a fair value of $418,016, representing 6.9% of net assets[24] - The total fair value of investments as of June 30, 2024, reflects a diversified portfolio across various sectors, indicating strategic market positioning by Blue Owl Capital Corporation[33][34] Equity Investments - Total non-controlled/nonaffiliated portfolio company equity investments amounted to $648,039,000 with a fair value of $777,751,000, representing 12.9% of net assets[53] - The fair value of equity investments in non-controlled/nonaffiliated portfolio companies reached $821,525, accounting for 13.6% of net assets[89] Unrealized Gains and Losses - The estimated aggregate gross unrealized loss for U.S. federal income tax purposes is $434,600,000, while the estimated aggregate gross unrealized gain is $373,700,000[57] - The company reported a net estimated unrealized loss for U.S. federal income tax purposes of $60,900,000 based on a tax cost basis of $13,400,000,000[57] Recent Investments - The company has made significant investments in new technologies and products, including Alphasense, LLC and Blend Labs, Inc.[60] - The company holds a first lien senior secured loan to Access CIG, LLC with an amortized cost of $58,523,000 and a fair value of $58,760,000, accounting for 1.0% of net assets[65] - Blue Owl's investment in Hercules Borrower, LLC has an amortized cost of $173,628,000 and a fair value of $174,654,000, representing 2.9% of net assets[65] Summary of Financials - Total investments as of June 30, 2024, amount to $13,341,982,000, representing a 221.1% percentage of net assets[56] - The total controlled/affiliated portfolio company investments are valued at $1,604,264,000, which is 26.8% of net assets[56]

Core Viewpoint - The merger between Blue Owl Capital Corporation (OBDC) and Blue Owl Capital Corporation III (OBDE) aims to create the second largest publicly traded Business Development Company (BDC) by total assets, enhancing scale and investment overlap, with a pro forma total asset value of $18.4 billion [1][3]. Group 1: Transaction Overview - The merger agreement has been unanimously approved by the boards of both companies and is subject to shareholder approvals and customary closing conditions [1][14]. - The combined company will have approximately 90% investment overlap, facilitating portfolio consolidation and reducing integration risk [2][3]. Group 2: Financial Implications - The merger is expected to increase OBDC's total investments by about 30%, raising the investment portfolio to approximately $17.7 billion across 256 portfolio companies [3]. - The merger is projected to be accretive to Net Investment Income (NII), with estimated operational savings exceeding $5 million in the first year [6]. Group 3: Market and Structural Benefits - The increased market capitalization may enhance trading liquidity and institutional ownership, while streamlining the organizational structure by eliminating a second diversified publicly traded BDC [4][5]. - The combined company is expected to benefit from a well-balanced capital structure, improving access to long-term, low-cost debt capital [5]. Group 4: Shareholder Considerations - Shareholders of OBDE will receive newly issued shares of OBDC based on a calculated Exchange Ratio, which will be determined prior to closing [8][10]. - The transaction allows for potential NAV per share accretion for OBDC if its shares are trading above NAV at the time of closing [7]. Group 5: Future Steps - The merger is anticipated to close in the first quarter of 2025, pending necessary approvals [14]. - Both companies plan to declare and pay ordinary course quarterly dividends prior to the merger closing [11][12].

Blue Owl Capital Corporation (OBDC) is set to report its second-quarter 2024 results on Aug 7, after the closing bell. The Zacks Consensus Estimate for second-quarter earnings is currently pegged at 47 cents per share, implying a decline of 2.1% from the year-ago reported number. The estimate remained stable over the past month. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at almost $388.8 million, suggesting a 1.4% fall from the year-ago actuals. Image Source: Zacks Investme ...

Blue Owl Capital Corporation (OBDC) , a business development company, is well-poised to grow on the back of strong credit performance, rising net investment income, strategic acquisitions and new investment commitments. Headquartered in New York, Blue Owl Capital has a market cap of $6.1 billion. Zacks Estimate Story: The Zacks Consensus Estimate for OBDC's 2024 earnings is pegged at $1.88 per share, which remained stable over the past week. Blue Owl Capital beat on earnings in three of the last four quarte ...

It has been about a month since the last earnings report for Blue Owl Capital Corporation (OBDC) . Shares have added about 1.4% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Blue Owl Capital Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Blue Owl C ...

Blue Owl Capital Corporation (OBDC) reported first-quarter 2024 earnings per share (EPS) of 47 cents, which missed the Zacks Consensus Estimate by 2.1%. However, the bottom line improved 4.4% year over year.The total investment income of OBDC amounted to $400 million, which increased 5.8% year over year. The top line beat the Zacks Consensus Estimate of $399 million.OBDC’s first-quarter earnings were impacted by higher interest expenses as a result of higher average rates. The ratio of total expenses to ave ...