T. ROWE PRICE OHA SELECT PRIVATE CREDIT FUND ANNOUNCES SEPTEMBER 30, 2024 FINANCIAL RESULTS AND DECLARED TOTAL DISTRIBUTIONS OF $0.84 PER SHARE IN Q3 2024
T. Rowe Price OHA Select Private Credit Fund (OCREDIT) announced Q3 2024 financial results and declared total distributions of $0.84 per share, including a $0.15 special quarterly distribution. The fund invested in 10 new portfolio companies, achieving net growth of $285.3 million. The portfolio spans 103 companies across 22 sectors with an 11.6% yield. Net investment income was $0.77 per share, with earnings per share at $0.69. The fund's NAV slightly decreased to $27.83 from $27.98. OCREDIT expanded its JPM Credit Facility to $665 million from $475 million and reduced costs on its BNP Credit Facility.
Il T. Rowe Price OHA Select Private Credit Fund (OCREDIT) ha annunciato i risultati finanziari del terzo trimestre del 2024, dichiarando distribuzioni totali di $0.84 per azione, comprese $0.15 di distribuzione speciale trimestrale. Il fondo ha investito in 10 nuove aziende del portafoglio, ottenendo una crescita netta di $285.3 milioni. Il portafoglio comprende 103 aziende in 22 settori con un rendimento dell'11.6%. Il reddito da investimenti netti è stato di $0.77 per azione, con utili per azione pari a $0.69. Il valore netto degli attivi (NAV) del fondo è leggermente diminuito a $27.83 da $27.98. OCREDIT ha ampliato la sua linea di credito JPM a $665 milioni da $475 milioni e ha ridotto i costi della sua linea di credito BNP.
El T. Rowe Price OHA Select Private Credit Fund (OCREDIT) anunció los resultados financieros del tercer trimestre de 2024 y declaró distribuciones totales de $0.84 por acción, incluyendo una distribución especial trimestral de $0.15. El fondo invirtió en 10 nuevas empresas de la cartera, logrando un crecimiento neto de $285.3 millones. La cartera abarca 103 empresas en 22 sectores con un rendimiento del 11.6%. Los ingresos netos por inversiones fueron de $0.77 por acción, con ganancias por acción de $0.69. El valor neto de los activos (NAV) del fondo disminuyó ligeramente a $27.83 desde $27.98. OCREDIT amplió su línea de crédito de JPM a $665 millones desde $475 millones y redujo los costos de su línea de crédito de BNP.
T. Rowe Price OHA Select Private Credit Fund (OCREDIT)는 2024년 3분기 재무 결과를 발표하고 주당 총 배당금을 $0.84로 설정했으며, 여기에는 $0.15의 특별 분기 배당금이 포함됩니다. 이 펀드는 10개의 새로운 포트폴리오 회사에 투자하여 순 성장 $285.3 백만 달러를 달성했습니다. 포트폴리오는 22개 산업에 걸쳐 103개 회사로 구성되어 있으며, 수익률은 11.6%입니다. 순 투자 수익은 주당 $0.77였으며, 주당 수익은 $0.69입니다. 펀드의 순자산 가치(NAV)는 $27.98에서 $27.83으로 약간 감소했습니다. OCREDIT는 JPM 신용 시설을 $475 백만에서 $665 백만으로 확대하고 BNP 신용 시설의 비용을 감소시켰습니다.
Le T. Rowe Price OHA Select Private Credit Fund (OCREDIT) a annoncé les résultats financiers du troisième trimestre 2024 et a déclaré des distributions totales de $0.84 par action, y compris une distribution spéciale de $0.15 par trimestre. Le fonds a investi dans 10 nouvelles entreprises de portefeuille, réalisant une croissance nette de $285.3 millions. Le portefeuille couvre 103 entreprises dans 22 secteurs avec un rendement de 11.6%. Le revenu net d'investissement était de $0.77 par action, avec des bénéfices par action de $0.69. La valeur nette d'inventaire (NAV) du fonds a légèrement diminué de $27.98 à $27.83. OCREDIT a prolongé sa facilité de crédit JPM de $475 millions à $665 millions et réduit les coûts de sa facilité de crédit BNP.
Der T. Rowe Price OHA Select Private Credit Fund (OCREDIT) hat die Finanzergebnisse für das dritte Quartal 2024 bekannt gegeben und eine Gesamtausschüttung von $0.84 pro Aktie erklärt, einschließlich einer Sonderausschüttung von $0.15 pro Quartal. Der Fonds investierte in 10 neue Portfoliounternehmen und erzielte ein Nettowachstum von $285.3 Millionen. Das Portfolio umfasst 103 Unternehmen in 22 Sektoren mit einer Rendite von 11.6%. Der Nettobetriebsertrag betrug $0.77 pro Aktie, mit einem Gewinn pro Aktie von $0.69. Der Nettoinventarwert (NAV) des Fonds sank leicht von $27.98 auf $27.83. OCREDIT hat seine JPM-Kreditfazilität von $475 Millionen auf $665 Millionen ausgeweitet und die Kosten für seine BNP-Kreditfazilität gesenkt.
- Portfolio net growth of $285.3 million in Q3 2024
- Strong portfolio yield of 11.6%
- Stable net investment income of $0.77 per share
- Total quarterly distributions of $0.84 per share, including special distribution
- Credit facility expansion by $190 million
- Reduced borrowing costs on BNP Credit Facility
- No investments on non-accrual status
- NAV per share declined 0.5% from $27.98 to $27.83
- Increased leverage with debt-to-equity ratio rising to 0.79x from 0.74x
Insights
The Q3 2024 results showcase strong financial performance with significant portfolio expansion. Key highlights include
Notable strengths include:
- Stable net investment income of
$0.77 per share - Healthy distribution yield of
9.9% (excluding special distributions) - Strategic debt management with leverage at 0.79x
- Successful facility expansion to
$665 million from$475 million
As borrowers continued to access private credit markets for their financing solutions, OCREDIT was a beneficiary of OHA's robust investment platform, allowing it to invest in 10 new portfolio companies throughout the third quarter, representing portfolio net growth of
Additionally, OCREDIT continues to expand and diversify its borrowing facilities to ensure they are sized appropriately and to ensure appropriate terms and conditions. "Subsequent to quarter-end, in October, OCREDIT continued to demonstrate its access to debt capital by upsizing its JPM Credit Facility to
QUARTERLY HIGHLIGHTS5
- Net investment income per share was
$0.77 11.6% 2; - Earnings per share were
$0.69 14.31% 4; - Net asset value per share as of September 30, 2024 was
$27.83 0.5% from$27.98 - Gross and net investment fundings were
$356.5 million $285.3 million - Ending debt-to-equity was 0.79x, as compared to 0.74x as of June 30, 2024;
- The Company had total net debt outstanding of
$850.5 million 7.8% to7.6% quarter over quarter. Subsequent to quarter end, the Company entered into a Commitment Increase Agreement5 (the "Commitment Increase Agreement") with JPMorgan Chase Bank ("JPM" or the "JPM Credit Facility"). The Commitment Increase Agreement increased total commitments from$475 million $665 million - During the third quarter of 2024, the Company issued 2,294,172 of Class I common shares for proceeds of
$64.2 million $17.3 million $66.7 million - Subsequent to quarter end on October 24, 2024, the Company declared a regular distribution of
$0.20 $0.03 $0.23
DISTRIBUTIONS8
During the third quarter of 2024, the Company declared total distributions of
From October 1, 2024 through November 7, 2024, the Company declared the following distributions:
($ per share) |
October 24, 2024 |
Base Distribution | |
Variable Distribution | |
Total Distribution |
SELECTED FINANCIAL HIGHLIGHTS
($ in thousands, unless otherwise noted) | Q3 2024 | Q2 2024 | |
Net investment income per share | |||
Net investment income | |||
Earnings per share | |||
($ in thousands, unless otherwise noted) | As of September 30, 2024 | As of June 30, 2024 | |
Total fair value of investments | |||
Total assets | |||
Total net assets | |||
Net asset value per share | |||
INVESTMENT ACTIVITY
For the three months ended September 30, 2024, net investment fundings were
($ in millions, unless otherwise noted) | Q3 2024 | Q2 2024 | |
Investment Fundings | |||
Sales and Repayments | |||
Net Investment Activity |
As of September 30, 2024, the Company's investment portfolio had a fair value of
FORWARD-LOOKING STATEMENTS
Certain information contained in this communication constitutes "forward-looking statements" within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology, such as "outlook," "indicator," "believes," "expects," "potential," "continues," "may," "can," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates", "confident," "conviction," "identified" or the negative versions of these words or other comparable words thereof. These may include financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements regarding future performance, statements regarding economic and market trends and statements regarding identified but not yet closed investments. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. OCREDIT believes these factors also include but are not limited to those described under the section entitled "Risk Factors" in its prospectus, and any such updated factors included in its periodic filings with the Securities and Exchange Commission (the "SEC"), which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document (or OCREDIT's prospectus and other filings). Except as otherwise required by federal securities laws, OCREDIT undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
ABOUT T. ROWE PRICE OHA SELECT PRIVATE CREDIT FUND
T. Rowe Price OHA Select Private Credit Fund (the "Company" or "OCREDIT") is a non-diversified, closed-end management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Company also intends to elect to be treated as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "Code"). OHA Private Credit Advisors LLC (the "Adviser") is the investment adviser of the Company. The Adviser is registered as an investment adviser with the
Please visit www.ocreditfund.com for additional information.
ABOUT
Oak Hill Advisors ("OHA") is a leading global credit-focused alternative asset manager with over 30 years of investment experience. OHA works with institutions and individuals and seeks to deliver a consistent track record of risk-adjusted returns with downside focus. The firm manages approximately
With over 410 experienced professionals across six global offices, OHA brings a collaborative approach to offering investors a single platform to meet their diverse credit needs. OHA is the private markets platform of T. Rowe Price Group, Inc. (NASDAQ – GS: TROW). For more information, please visit oakhilladvisors.com.
ABOUT T. ROWE PRICE
Founded in 1937, T. Rowe Price (NASDAQ – GS: TROW) helps individuals and institutions around the world achieve their long-term investment goals. As a large global asset management company known for investment excellence, retirement leadership, and independent proprietary research, the firm is built on a culture of integrity that puts client interests first. Clients rely on the award-winning firm for its retirement expertise and active management of equity, fixed income, alternatives, and multi-asset investment capabilities. T. Rowe Price has
T. Rowe Price OHA Select Private Credit Fund | ||
Consolidated Statements of Assets and Liabilities | ||
(in thousands, except per share amounts) | ||
As of | As of | |
September 30, 2024 | December 31, 2023 | |
ASSETS | (unaudited) | |
Investments at fair value: | ||
Non-controlled/non-affiliated investments (cost of | $ 1,937,619
| $ 1,148,412 |
Cash, cash equivalents and restricted cash | 37,087 | 105,456 |
Interest receivable | 21,392 | 15,498 |
Deferred financing costs | 5,184 | 6,021 |
Deferred offering costs | 520 | 1,705 |
Receivable for investments sold | 33,246 | 9,044 |
Unrealized appreciation on foreign currency contracts | 24 | - |
Total assets | $ 2,035,072 | $ 1,286,136 |
LIABILITIES | ||
Debt (net of unamortized debt issuance costs of | $ 850,528 | $ 558,630 |
Payable for investments purchased | 63,600 | 151 |
Interest and debt fee payable | 16,047 | 4,846 |
Distribution payable | 14,725 | 11,573 |
Management fee payable | 3,254 | - |
Income incentive fee payable | 4,306 | - |
Distribution and/or shareholder servicing fees payable | 17 | - |
Unrealized depreciation on foreign currency forward contracts | - | 1,048 |
Accrued expenses and other liabilities | 3,037 | 5,457 |
Total liabilities | $ 955,514 | $ 581,705 |
Commitments and contingencies (Note 8) | ||
NET ASSETS | ||
Class I shares, | $ 388 | $ 252 |
Additional paid in capital | 1,069,860 | 687,139 |
Distributable earnings (loss) | 9,310 | 17,040 |
Total net assets | $ 1,079,558 | $ 704,431 |
Total liabilities and net assets | $ 2,035,072 | $ 1,286,136 |
Net asset value per share | $ 27.83 | $ 28.00 |
See accompanying notes to consolidated financial statements. | ||
T. Rowe Price OHA Select Private Credit Fund | ||||
Consolidated Statements of Operations | ||||
(in thousands, except per share amounts) | ||||
(unaudited) | ||||
For the Three Months Ended | For the Nine Months Ended | |||
September 30, 2024 | September 30, | September 30, | September 30, | |
Investment income from non-controlled / | ||||
Interest income | $ 53,285 | $ 20,285 | $ 137,033 | $ 24,730 |
Other income | 3,195 | 664 | 9,672 | 796 |
Total investment income | 56,480 | 20,949 | 146,705 | 25,526 |
Expenses: | ||||
Interest and debt fee expense | 16,363 | 7,273 | 41,049 | 8,402 |
Management fees | 3,254 | 962 | 8,299 | 962 |
Income incentive fees | 4,306 | 1,543 | 11,155 | 1,543 |
Distribution and shareholder servicing fees | ||||
Class S | 39 | - | 45 | - |
Professional fees | 888 | 504 | 1,704 | 1,051 |
Board of Trustees fees | 98 | 97 | 292 | 291 |
Administrative service expenses | 359 | 225 | 1,109 | 310 |
Organizational costs | - | - | - | 94 |
Other general & administrative expenses | 1,223 | 396 | 3,705 | 694 |
Amortization of deferred offering costs | 429 | 486 | 2,040 | 486 |
Total expenses before fee waivers and | 26,959 | 11,486 | 69,398 | 13,833 |
Expense support | (78) | (324) | (1,306) | (324) |
Management fees waiver | - | (962) | (2,344) | (962) |
Income incentive fee waiver | - | (1,543) | (3,363) | (1,543) |
Total expenses net of fee waivers and | 26,881 | 8,657 | 62,385 | 11,004 |
Net investment income | 29,599 | 12,292 | 84,320 | 14,522 |
Realized and unrealized gain (loss): | ||||
Realized gain (loss): | ||||
Non-controlled/non-affiliated investments | 285 | 159 | (34) | 181 |
Foreign currency transactions | 172 | (69) | 438 | (69) |
Foreign currency forward contracts | (2,558) | 325 | (2,078) | 325 |
Net realized gain (loss) | (2,101) | 415 | (1,674) | 437 |
Net change in unrealized appreciation (depreciation): | ||||
Non-controlled/non-affiliated investments | (1,272) | 7,251 | (6,532) | 7,960 |
Foreign currency translation | 27 | - | 27 | - |
Foreign currency forward contracts | 30 | 132 | 1,072 | 141 |
Net change in unrealized appreciation (depreciation) | (1,215) | 7,383 | (5,433) | 8,101 |
Net realized and unrealized gain (loss) | (3,316) | 7,798 | (7,107) | 8,538 |
Net increase (decrease) in net assets | $ 26,283 | $ 20,090 | $ 77,213 | $ 23,060 |
See accompanying notes to consolidated financial statements. | ||||
For a more detailed description of OCREDIT's investment guidelines and risk factors, please refer to the prospectus. Consider the investment objectives, risks, and charges and expenses carefully before investing or sending money. For a free prospectus containing this and other information, call 1-855-405-6488 or visit www.ocreditfund.com. Read it carefully.
OCREDIT is a non-exchange traded business development company ("BDC") that expects to invest at least
Neither the Securities and Exchange Commission nor any state securities regulator has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Securities regulators have also not passed upon whether this offering can be sold in compliance with existing or future suitability or Regulation Best Interest standard to any or all purchasers.
As of March 26, 2024, OCREDIT is available in 54 states and territories.
As of March 26, 2024, OCREDIT is not registered for offer or sale outside of
BDCs may charge management fees, incentive fees, as well as other fees associated with servicing loans. These fees will detract from the total return.
OCREDIT may in certain circumstances invest in companies experiencing distress increasing the risk of default or failure. OCREDIT is not listed on an exchange which heightens liquidity risk for an investor. OCREDIT has limited prior operating history and there is no assurance that it will achieve its investment objectives. The Company's public offering is a "blind pool" offering and thus investors will not have the opportunity to evaluate the Company's investments before they are made. Investors should not expect to be able to sell shares regardless of performance and should consider that they may not have access to the money invested for an extended period of time and may be unable to reduce their exposure in a market downturn.
OCREDIT employs leverage, which increases the volatility of OCREDIT's investments and will magnify the potential for loss. Fixed-income securities are subject to credit risk, call risk, and interest rate risk. As interest rates rise, bond prices fall. Investments in high-yield bonds involve greater risk. International investments can be riskier than
OCREDIT is "non-diversified," meaning it may invest a greater portion of its assets in a single company. OCREDIT's share price can be expected to fluctuate more than that of a comparable diversified fund. OCREDIT may invest in derivatives, which may be riskier or more volatile than other types of investments because they are generally more sensitive to changes in market or economic conditions.
Account opening and closing fees may apply depending on the amount invested and the timing of the account closure. There may be costs associated with the investments in the account such as periodic management fees, incentive fees, loads, other expenses or brokerage commissions. Fees for optional services may also apply.
Opinions and estimates offered herein constitute the judgment of Oak Hill Advisors, L.P. as of the date this document is provided to an investor and are subject to change as are statements about market trends. All opinions and estimates are based on assumptions, all of which are difficult to predict and many of which are beyond the control of Oak Hill Advisors, L.P. In preparing this document, Oak Hill Advisors, L.P. has relied upon and assumed, without independent verification, the accuracy and completeness of all information. Oak Hill Advisors, L.P. believes that the information provided herein is reliable; however, it does not warrant its accuracy or completeness. Certain information contained in the press release discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.
Diversification cannot assure a profit or protect against loss in a declining market. Potential investors are urged to consult a tax professional regarding the possible economic, tax, legal, or other consequences of investing in OCREDIT in light of their particular circumstances.
In
© 2024 Oak Hill Advisors. All Rights Reserved. OHA is a trademark of Oak Hill Advisors, L.P. T. ROWE PRICE is a trademark of T. Rowe Price Group, Inc. All other trademarks shown are the property of their respective owners. Use does not imply endorsement, sponsorship, or affiliation of Oak Hill Advisors with any of the trademark owners.
202411-3892273
__________________________________ |
1 Figures represent borrowings that bear interest at a rate of SOFR + a determined amount. SOFR = Secured Overnight Financing Rate. |
2 Computed as (a) the annual stated interest rate or yield plus the annual accretion of discounts or less the annual amortization of premiums, as applicable, on income producing securities, divided by (b) the total relevant investments at amortized cost or fair value, as applicable. |
3 Inception is November 14, 2022. |
4 Annualized total return based on net asset value calculated as the change in net asset value per share during the respective period, assuming distributions that have been declared are reinvested on the effects of the performance of the Company during the period. Past performance is no guarantee of future results. |
5 The Commitment Increase Agreement provides for, among other things, an increase in the total aggregate commitments from lenders under the revolving credit facility governed by the Credit Agreement. |
6 Does not include common shares sold through the Company's distribution reinvestment plan. |
7 Performance and share activity shown is indicative of Class I only, unless otherwise indicated. |
8 Future distribution payments are not guaranteed. |
View original content:SOURCE OHA; T. Rowe Price Group, Inc.
FAQ
What was TROW OHA Select Private Credit Fund's net investment income per share in Q3 2024?
How much did TROW OHA Select Private Credit Fund distribute to shareholders in Q3 2024?
What was TROW OHA Select Private Credit Fund's portfolio yield as of September 30, 2024?
How many new portfolio companies did TROW OHA Select Private Credit Fund invest in during Q3 2024?
