Prnewswire·2025-11-05 21:37Core Insights - Blue Owl Capital Corporation (OBDC) reported strong performance in Q3 2025, highlighting solid credit quality and fundamentals in its portfolio, alongside announcing a merger with OBDC II to enhance long-term shareholder value [2][8]. Financial Performance - Q3 2025 net investment income per share was $0.37, down from $0.42 in Q2 2025 and $0.47 in Q3 2024 [7][30]. - Total investment income decreased to $453.1 million in Q3 2025 from $485.8 million in Q2 2025, primarily due to a decline in prepayment-related income and interest income from debt investments [19][30]. - Total expenses decreased to $260.0 million in Q3 2025 from $266.8 million in Q2 2025, mainly due to lower management and incentive fees [20][30]. Dividend and Shareholder Returns - The Board declared a regular dividend of $0.37 per share for Q4 2025, maintaining the same level as the previous quarter, representing an annualized dividend yield of 9.9% [3][8]. - A new repurchase program was approved, allowing for the repurchase of up to $200 million of common stock over the next 18 months [4][30]. Investment Activity - New investment commitments totaled $1.3 billion in Q3 2025, an increase from $1.1 billion in Q2 2025, with sales and repayments amounting to $797 million [13][14]. - The portfolio consisted of 238 companies with a total fair value of $17.1 billion, with first-lien senior secured debt investments making up 74.4% of the portfolio [11][12]. Portfolio Composition - As of September 30, 2025, the portfolio included 97.4% of debt investments at floating rates, with a weighted average yield of accruing debt and income-producing securities at fair value of 10.3% [12][30]. - Investments on non-accrual represented 1.3% of the portfolio at fair value, up from 0.7% in the previous quarter [8][12]. Merger Announcement - OBDC and OBDC II entered into a definitive merger agreement, with OBDC as the surviving entity, pending shareholder approvals [2][8].