Prnewswire·2025-11-05 21:35Core Viewpoint - The merger between Blue Owl Capital Corporation (OBDC) and Blue Owl Capital Corporation II (OBDC II) aims to create a stronger, more efficient business development company (BDC) with enhanced scale and cost efficiencies, positioning OBDC as the second largest publicly traded BDC by total assets [1][2]. Transaction Details - The merger agreement has been unanimously approved by the boards of both companies and is subject to shareholder approvals and customary closing conditions [1][9]. - Shareholders of OBDC II will receive newly issued shares of OBDC based on a predetermined exchange ratio, with no fractional shares issued [3][4]. - The merger is expected to close in the first quarter of 2026, pending necessary approvals [9]. Financial Impact - The pro forma investment portfolio of OBDC is projected to increase by $1.7 billion to approximately $18.9 billion across 239 portfolio companies [6]. - The combined company will maintain 80% of senior secured investments, with only 1.3% of pro forma investments at fair value on non-accrual [6]. - The merger is anticipated to generate approximately $5 million in operational cost savings in the first year, enhancing overall financial performance [6]. Strategic Benefits - The merger simplifies Blue Owl's BDC structure and enhances liquidity for shareholders, potentially attracting a broader investor base [6]. - The transaction is expected to improve the cost of debt and financing terms over time, benefiting shareholders through lower expenses and higher asset yields [6]. Management and Governance - The combined entity will continue to be externally managed by Blue Owl Credit Advisors LLC, with all current OBDC officers and directors retaining their roles [8]. - A new stock repurchase program has been approved, allowing OBDC to repurchase up to $200 million of its common stock over the next 18 months [8].