Blue Owl Capital Corporation Reports Second Quarter Net Investment Income Per Share of $0.48 and NAV Per Share of $15.26
- Record net investment income of $0.48 per share
- 30% increase in total dividends from the same period last year
- Increase in net asset value per share
- Confidence in generating an ROE of over 12% for 2023
- Declaration of third quarter dividend of $0.33 per share
- Completion of stock repurchases totaling $75 million
- Strong portfolio and investing activity
- None.
SECOND QUARTER 2023 HIGHLIGHTS
- Second quarter net investment income ("NII") of
per share, which represents the second consecutive quarter of record NII for the Company$0.48 - In addition, the Board declared a second quarter supplemental dividend of
per share$0.07 - Total dividends for the second quarter were
per share, which represents a$0.40 30% increase from the same period a year ago - Delivered NII ROE1 of
12.6% in the second quarter, up from8.6% the prior year - Net asset value per share increased to
compared to$15.26 as of March 31, 2023$15.15
Craig W. Packer, Chief Executive Officer of Blue Owl Capital Corporation commented, "OBDC achieved record net investment income for the second straight quarter and continues to deliver strong credit performance. Looking ahead, we believe the Company can generate an ROE in excess of
Dividend Declarations
The Company's Board of Directors has declared a third quarter 2023 dividend of
Stock Repurchases
On November 1, 2022, the Board approved the 2022 Repurchase Program under which the Company may repurchase up to
PORTFOLIO AND INVESTING ACTIVITY
For the three months ended June 30, 2023, new investment commitments totaled
For the three months ended June 30, 2023, the principal amount of new investments funded was
For the three months ended March 31, 2023, the principal amount of new investments funded was
As of June 30, 2023 and March 31, 2023, the Company had investments in 187 portfolio companies with an aggregate fair value of
As of June 30, 2023, based on fair value, our portfolio consisted of
As of March 31, 2023, based on fair value, our portfolio consisted of
As of June 30, 2023 and March 31, 2023, approximately
As of June 30, 2023 and March 31, 2023, the weighted average total yield of accruing debt and income-producing securities at fair value (which includes interest income and amortization of fees and discounts) was
As of June 30, 2023, three portfolio companies with an aggregate fair value of
RESULTS OF OPERATIONS FOR THE QUARTER ENDED JUNE 30, 2023
Investment Income
Investment income increased to
Expenses
Total expenses, excluding taxes, increased to
Liquidity and Capital Resources
As of June 30, 2023, we had
CONFERENCE CALL AND WEBCAST INFORMATION
Conference Call Information:
The conference call will be broadcast live on August 10, 2023 at 10:00 a.m. Eastern Time on the Events section of OBDC's website at www.BlueOwlCapitalCorporation.com. Please visit the website to test your connection before the webcast.
Participants are also invited to access the conference call by dialing one of the following numbers:
- Domestic: (877) 737-7048
- International: +1 (201) 689-8523
All callers will need to reference "Blue Owl Capital Corporation" once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected.
Replay Information:
An archived replay will be available for 14 days via a webcast link located on the Events section of OBDC's website, and via the dial-in numbers listed below:
- Domestic: (877) 660-6853
- International: +1 (201) 612-7415
- Conference ID: 13739247
(1) NII ROE is calculated as annualized Q2'23 net investment income divided by average Q2'23 and Q1'23 net asset value. |
FINANCIAL HIGHLIGHTS | ||||||
For the three months ended | ||||||
($ in thousands, except per share amounts) | June 30, 2023 | March 31, 2023 | June 30, 2022 | |||
Investments at Fair Value | $ 12,892,943 | $ 13,157,251 | $ 12,648,126 | |||
Total Assets | $ 13,393,278 | $ 13,679,100 | $ 13,088,383 | |||
Net Asset Value Per Share | $ 15.26 | $ 15.15 | $ 14.48 | |||
Investment Income | $ 394,223 | $ 377,622 | $ 273,286 | |||
Net Investment Income | $ 186,676 | $ 177,859 | $ 125,124 | |||
Net Income | $ 195,562 | $ 201,842 | $ (34,946) | |||
Net Investment Income Per Share | $ 0.48 | $ 0.45 | $ 0.32 | |||
Net Realized and Unrealized Gains (and Losses) | $ 0.02 | $ 0.07 | $ (0.41) | |||
Net Income Per Share | $ 0.50 | $ 0.52 | $ (0.09) | |||
Distributions Declared from Net Investment | $ 0.33 | $ 0.33 | $ 0.31 | |||
Supplemental Distributions Declared from Net | $ 0.07 | $ 0.06 | $ — | |||
Weighted Average Yield of Accruing Debt and | 12.2 % | 12.0 % | 8.9 % | |||
Weighted Average Yield of Accruing Debt and | 12.2 % | 12.0 % | 8.8 % | |||
Percentage of Debt Investment Commitments at | 98.1 % | 98.2 % | 98.8 % |
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Amounts in thousands, except share and per share amounts) | ||||
June 30, 2023 | December 31, 2022 | |||
Assets | ||||
Investments at fair value | ||||
Non-controlled, non-affiliated investments (amortized cost of | $ 11,550,563 | $ 12,010,369 | ||
Non-controlled, affiliated investments (amortized cost of | 19,626 | 6,175 | ||
Controlled, affiliated investments (amortized cost of | 1,322,754 | 993,801 | ||
Total investments at fair value (amortized cost of | 12,892,943 | 13,010,345 | ||
Cash (restricted cash of | 366,208 | 444,278 | ||
Foreign cash (cost of | 1,687 | 809 | ||
Interest receivable | 107,767 | 108,085 | ||
Receivable from a controlled affiliate | 19,302 | 17,709 | ||
Prepaid expenses and other assets | 5,371 | 3,627 | ||
Total Assets | $ 13,393,278 | $ 13,584,853 | ||
Liabilities | ||||
Debt (net of unamortized debt issuance costs of | $ 7,027,176 | $ 7,281,744 | ||
Distribution payable | 128,612 | 129,517 | ||
Management fee payable | 48,023 | 47,583 | ||
Incentive fee payable | 39,598 | 34,462 | ||
Payables to affiliates | 6,494 | 6,351 | ||
Accrued expenses and other liabilities | 194,411 | 202,793 | ||
Total Liabilities | 7,444,314 | 7,702,450 | ||
Commitments and contingencies (Note 7) | ||||
Net Assets | ||||
Common shares | 3,897 | 3,925 | ||
Additional paid-in-capital | 5,936,644 | 5,970,674 | ||
Accumulated undistributed (overdistributed) earnings | 8,423 | (92,196) | ||
Total Net Assets | 5,948,964 | 5,882,403 | ||
Total Liabilities and Net Assets | $ 13,393,278 | $ 13,584,853 | ||
Net Asset Value Per Share | $ 15.26 | 14.99 |
CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share amounts) | ||||||||
For the Three Months | For the Six Months | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Investment Income | ||||||||
Investment income from non-controlled, non-affiliated investments: | ||||||||
Interest income | $ 297,992 | $ 206,103 | $ 586,670 | $ 414,704 | ||||
Payment-in-kind interest income | 44,803 | 26,748 | 87,858 | 49,159 | ||||
Dividend income | 17,607 | 9,685 | 35,440 | 21,413 | ||||
Other income | 7,243 | 5,538 | 10,207 | 9,386 | ||||
Total investment income from non-controlled, non-affiliated investments | 367,645 | 248,074 | 720,175 | 494,662 | ||||
Investment income from non-controlled, affiliated investments: | ||||||||
Dividend income | 177 | — | 177 | — | ||||
Total investment income from non-controlled, affiliated investments: | 177 | — | 177 | — | ||||
Investment income from controlled, affiliated investments: | ||||||||
Interest income | 5,553 | 1,854 | 8,227 | 3,627 | ||||
Dividend income | 20,662 | 23,195 | 42,688 | 38,833 | ||||
Other Income | 186 | 163 | 578 | 325 | ||||
Total investment income from controlled, affiliated investments | 26,401 | 25,212 | 51,493 | 42,785 | ||||
Total Investment Income | 394,223 | 273,286 | 771,845 | 537,447 | ||||
Expenses | ||||||||
Interest expense | 110,017 | 67,347 | 213,972 | 128,726 | ||||
Management fees | 48,024 | 46,873 | 96,116 | 94,286 | ||||
Performance based incentive fees | 39,598 | 26,541 | 77,326 | 52,495 | ||||
Professional fees | 4,131 | 3,406 | 7,804 | 7,235 | ||||
Directors' fees | 257 | 266 | 515 | 556 | ||||
Other general and administrative | 3,140 | 2,143 | 5,811 | 4,276 | ||||
Total Operating Expenses | 205,167 | 146,576 | 401,544 | 287,574 | ||||
Net Investment Income (Loss) Before Taxes | 189,056 | 126,710 | 370,301 | 249,873 | ||||
Income tax expense (benefit), including excise tax expense (benefit) | 2,380 | 1,586 | 5,765 | 2,394 | ||||
Net Investment Income (Loss) After Taxes | $ 186,676 | $ 125,124 | $ 364,536 | $ 247,479 | ||||
Net Realized and Change in Unrealized Gain (Loss) | ||||||||
Net change in unrealized gain (loss): | ||||||||
Non-controlled, non-affiliated investments | $ 3,869 | $ (152,965) | $ 69,292 | $ (222,913) | ||||
Non-controlled, affiliated investments | (4) | — | (5) | — | ||||
Controlled, affiliated investments | 6,127 | (3,636) | 16,381 | (15,394) | ||||
Translation of assets and liabilities in foreign currencies | 1,360 | (3,221) | 2,570 | (3,702) | ||||
Income tax (provision) benefit | (2,415) | — | (2,696) | — | ||||
Total Net Change in Unrealized Gain (Loss) | 8,937 | (159,822) | 85,542 | (242,009) | ||||
Net realized gain (loss): | ||||||||
Non-controlled, non-affiliated investments | 118 | (51) | (52,365) | 4,651 | ||||
Foreign currency transactions | (169) | (197) | (308) | (1,082) | ||||
Total Net Realized Gain (Loss) | (51) | (248) | (52,673) | 3,569 | ||||
Total Net Realized and Change in Unrealized Gain (Loss) | 8,886 | (160,070) | 32,869 | (238,440) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ 195,562 | $ (34,946) | $ 397,405 | $ 9,039 | ||||
Earnings Per Share - Basic and Diluted | $ 0.50 | $ (0.09) | $ 1.02 | $ 0.02 | ||||
Weighted Average Shares Outstanding - Basic and Diluted | 389,930,979 | 394,184,560 | 390,487,912 | 394,246,724 |
PORTFOLIO AND INVESTMENT ACTIVITY | |||
For the Three Months Ended June 30, | |||
($ in thousands) | 2023 | 2022 | |
New investment commitments | |||
Gross originations | $ 182,955 | $ 824,641 | |
Less: Sell downs | — | (221,256) | |
Total new investment commitments | $ 182,955 | $ 603,385 | |
Principal amount of investments funded: | |||
First-lien senior secured debt investments | $ 110,178 | $ 242,916 | |
Second-lien senior secured debt investments | — | 883 | |
Unsecured debt investments | — | 20,462 | |
Preferred equity investments | — | 42,665 | |
Common equity investments | 16,535 | 15,120 | |
Joint ventures(1) | 42,875 | 19,250 | |
Total principal amount of investments funded | $ 169,588 | $ 341,296 | |
Principal amount of investments sold or repaid: | |||
First-lien senior secured debt investments | $ (528,569) | $ (488,251) | |
Second-lien senior secured debt investments | (35,850) | — | |
Unsecured debt investments | — | — | |
Preferred equity investments | (1,589) | — | |
Common equity investments | (195) | — | |
Joint ventures(1) | — | — | |
Total principal amount of investments sold or repaid | $ (566,203) | $ (488,251) | |
Number of new investment commitments in new | 5 | 16 | |
Average new investment commitment amount | $ 23,800 | $ 15,432 | |
Weighted average term for new debt investment | 3.7 | 5.9 | |
Percentage of new debt investment commitments at floating rates | 100.0 % | 100.0 % | |
Percentage of new debt investment commitments at fixed rates | — % | — % | |
Weighted average interest rate of new debt investment commitments(3) | 11.9 % | 9.5 % | |
Weighted average spread over applicable base rate of | 6.6 % | 7.2 % |
(1) | Presented as investment funds and vehicles in previous quarters. |
(2) | Number of new investment commitments represents commitments to a particular portfolio company. |
(3) | For the three months ended June 30, 2023, assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month SOFR, which was |
ABOUT BLUE OWL CAPITAL CORPORATION
Blue Owl Capital Corporation (NYSE: OBDC) is a specialty finance company focused on lending to
Certain information contained herein may constitute "forward-looking statements" that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about OBDC, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond OBDC's control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in OBDC's filings with the SEC. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which OBDC makes them. OBDC does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
INVESTOR CONTACTS
Investor Contact:
Dana Sclafani
212-419-3000
credit-ir@blueowl.com
Media Contact:
Prosek Partners
Josh
pro-blueowl@prosek.com
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SOURCE Blue Owl Capital Corporation
FAQ
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