Blue Owl Capital Corporation III Announces Intention to List on the New York Stock Exchange
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Insights
The announcement by Blue Owl Capital Corporation III regarding its intention to list on the NYSE represents a significant strategic move that has the potential to impact the company's capital structure and investor base. The listing on a major exchange like the NYSE increases the visibility of the company, potentially improving liquidity and access to capital markets. The declaration of regular and special dividends suggests a commitment to shareholder returns, which might attract income-focused investors.
Furthermore, the initiation of a share repurchase program indicates management's confidence in the intrinsic value of the company's stock and could be a positive signal to the market, potentially supporting the stock price. However, the effectiveness of such programs depends on market conditions and the actual execution of buybacks. Investors should monitor the company's subsequent financial performance to evaluate the impact of these strategic decisions on earnings and cash flow.
Blue Owl Capital Corporation III's listing and the accompanying financial moves must be contextualized within the broader market trends of BDCs. BDCs are known for providing investors with high dividend yields and the declared dividends could be seen as a move to align with industry expectations. The special dividends, in particular, might be a strategic tool to generate initial investor interest post-listing.
However, the waiver of transfer restrictions on a significant number of shares could lead to increased volatility around the lock-up expiration dates. Investors often look at these events as potential sell signals, which can exert downward pressure on the stock price. It will be crucial for market participants to assess how these dynamics balance out with the company's operational performance and the broader economic environment affecting upper middle-market lending.
The waiver of transfer restrictions is a legal maneuver that facilitates increased trading of Blue Owl Capital Corporation III's shares post-listing. This waiver is likely aimed at enhancing stock liquidity but must be carefully managed to avoid adverse market reactions. Shareholders and potential investors should be aware of the implications of the staggered release of shares from lock-up periods, as it could lead to incremental increases in the company's free float, potentially affecting stock stability.
It is also essential to consider the legal framework governing the share repurchase program, as such activities are subject to strict securities laws and regulations. The discretionary nature of the program allows the company flexibility in timing and volume of repurchases, which can be an effective tool for capital management. Stakeholders should evaluate how these legal decisions align with the company's overall governance practices and long-term strategic objectives.
The senior management team of Blue Owl Capital Corporation III includes Craig W. Packer, Chief Executive Officer and Director; Logan Nicholson, President; Jonathan Lamm, Chief Financial Officer; and Bryan Cole, Chief Operating Officer.
The Company will hold a conference call on Wednesday, January 17, 2024, at 9:00 a.m. Eastern Time to provide additional details regarding the anticipated listing.
The Company plans to disclose preliminary estimates of fourth quarter 2023 results by January 24, 2024, before market open. OBDE expects to release full financial results for the fourth quarter and fiscal year 2023 on Wednesday, February 21, 2024, after market close, followed by a shareholder letter.
Distributions Declared
The board of directors of the Company (the "Board") declared a first quarter 2024 regular dividend of
In conjunction with the listing, the Board declared five special dividends of
Declaration Date | Record Date | Payment Date | Amount Per Share |
1/12/2024 | 5/31/2024 | 6/14/2024 | |
1/12/2024 | 8/30/2024 | 9/13/2024 | |
1/12/2024 | 11/29/2024 | 12/13/2024 | |
1/12/2024 | 2/28/2025 | 3/14/2025 | |
1/12/2024 | 5/30/2025 | 6/13/2025 |
Share Repurchase Program
In connection with the listing, the Company's Board approved a repurchase program under which up to
The program is expected to be in effect for one year from the listing of the Company's common stock or until the aggregate repurchase amount that has been approved by the Board has been expended. The program does not require the Company to repurchase any specific number of shares.
Waiver of Transfer Restrictions
In connection with the listing, the Board has waived the transfer restrictions contained in the Company's amended and restated articles of incorporation (the "Charter") with respect to 5,870,466 shares of the Company's common stock. The Charter provides for the balance of shares to be released in three equal tranches on the following schedule:
- 180 days after the listing (the "First Lock-Up Period");
- 270 days after the listing (the "Second Lock-Up Period"); and
- 365 days after the listing (the "Third Lock-Up Period").
Upon listing, a pro rata portion of each shareholder's shares of OBDE common stock will be released from each of the First, Second and Third Lock-Up Periods. The released shares will account for approximately
Advisors
BofA Securities, J.P. Morgan, and RBC Capital Markets are serving as lead advisors to the Company in connection with its proposed listing.
CONFERENCE CALL AND WEBCAST INFORMATION
A conference call to discuss additional details of OBDE's listing will be broadcast live on January 17, 2024 at 9:00 a.m. Eastern Time on the Company's website at www.BlueOwlCapitalCorporationIII.com. Please visit the website to test the connection before the webcast.
Participants are also invited to access the conference call by dialing one of the following numbers:
- Domestic: (877) 407-9714
- International: +1 (201) 689-8865
All callers will need to reference "Blue Owl Capital Corporation III" 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 via a webcast link located on OBDE's website for one year, and via the dial-in numbers listed below for 14 days:
- Domestic: (877) 660-6853
- International: +1 (201) 612-7415
- Access Code: 13743246
Additional information including SEC filings and investor presentation can be found at the Company's website, www.BlueOwlCapitalCorporationIII.com.
ABOUT BLUE OWL CAPITAL CORPORATION III
Blue Owl Capital Corporation III (NYSE: OBDE) 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 OBDE, 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 OBDE'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 OBDE'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 OBDE makes them. OBDE 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 III
FAQ
When will OBDE list its shares of common stock on the NYSE?
When will OBDE disclose preliminary estimates of fourth-quarter 2023 results?
When will OBDE release full financial results for the fourth quarter and fiscal year 2023?
What dividends were declared by the board of directors of OBDE?
What is the amount approved for OBDE's share repurchase program?
What transfer restrictions were waived by the board of OBDE?
Who are the lead advisors to OBDE in connection with its proposed listing?
