Core Insights - Blue Owl Capital Corporation III (OBDE) reported strong financial results for Q2 2024, with net investment income (NII) per share of $0.41, exceeding the regular dividend of $0.35 per share by over 15% [2] - The company declared a third quarter 2024 dividend of $0.35 per share and a series of five special dividends of $0.06 per share, with the second special dividend payable on or before September 13, 2024 [2][3] - OBDE entered into a definitive merger agreement with Blue Owl Capital Corporation (OBDC), with OBDC as the surviving entity, pending shareholder approvals [2][3] Financial Performance - Investment income increased to $123.2 million for Q2 2024, up from $106.2 million in the same period last year, primarily due to higher interest income from an expanded debt investment portfolio [5][13] - Total expenses rose to $72.5 million in Q2 2024 from $36.3 million in the prior year, driven by increased management fees, incentive fees, and interest expenses [6][13] - The company reported a net investment income of $50.4 million for Q2 2024, compared to $69.7 million in Q2 2023 [13] Investment Activity - New investment commitments totaled $1.0 billion across 31 new portfolio companies and 24 existing portfolio companies in Q2 2024, compared to $736.4 million in Q1 2024 [3][14] - The principal amount of new investments funded was $765.7 million, with $338.3 million in sales and repayments during the same period [3][14] - As of June 30, 2024, the company had investments in 207 portfolio companies with an aggregate fair value of $4.3 billion [10][11] Portfolio Composition - The portfolio consisted of 85.0% first lien senior secured debt investments, 5.4% second lien senior secured debt investments, 1.5% unsecured debt investments, 3.6% preferred equity investments, and 4.5% common equity investments as of June 30, 2024 [3][10] - Approximately 90.4% of the portfolio was invested in secured debt, with 97.5% of debt investments at floating rates [3][10] Capital Structure - As of June 30, 2024, the company had $120.3 million in cash, $2.5 billion in total principal value of debt outstanding, and a net debt-to-equity ratio of 1.22x [6][11] - The weighted average interest rate on debt outstanding was 7.1% for Q2 2024 [6][11]
Blue Owl Capital Corporation III Reports Second Quarter Net Investment Income Per Share of $0.41 and Net Asset Value Per Share of $15.56