NEW
YORK, Feb. 21, 2024 /PRNewswire/ -- Blue Owl
Capital Corporation (NYSE: OBDC, or the "Company") today
announced financial results for its full year and fourth quarter
ended December 31, 2023.
HIGHLIGHTS FOR FULL YEAR AND QUARTER ENDED DECEMBER 31,
2023
- Fourth quarter net investment income ("NII") per share of
$0.51, which represents the fourth
consecutive quarter of record NII for the Company
- As a result, Board declared a fourth quarter supplemental
dividend of $0.08 per share
- Total dividends for the fourth quarter were $0.43 per share, which represents an
approximately 11% annualized yield based on fourth quarter net
asset value ("NAV") per share
- Total dividends of $1.59 per
share paid to shareholders in 2023, an increase of approximately
25% from the prior year
- Delivered a total return of greater than 40%1 for
2023
- For the first quarter 2024, increased quarterly dividend by
$0.02 to $0.37 per share, marking the third dividend
increase since the fourth quarter 2022
- NAV per share increased to $15.45
compared to $15.40 as of September 30, 2023
"OBDC achieved record NII for the fourth consecutive quarter and
its highest NAV per share since inception in the fourth quarter,"
commented Craig W. Packer, Chief
Executive Officer. "As a result of our strong earnings, OBDC earned
a record 13.2%2 ROE in the fourth quarter, translating
to an annual ROE of 12.7%."
Dividend Declarations
The Company's Board of
Directors has declared a first quarter 2024 dividend of
$0.37 per share for stockholders of
record as of March 29, 2024, payable
on or before April 15, 2024 and a
fourth quarter 2023 supplemental dividend of $0.08 per share for stockholders of record as of
March 1, 2024, payable on or before
March 15, 2024.
PORTFOLIO AND INVESTING ACTIVITY
Full Year
For the full year ended December 31, 2023, new investment
commitments totaled $2,155.1 million
across 32 new portfolio companies and 34 existing portfolio
companies.
This compares to $1,772.4 million
for the full year ended December 31, 2022 across 52 new
portfolio companies and 23 existing portfolio companies.
For the full year ended December 31, 2023, the principal
amount of new investments funded was $1,680.5 million. For this period, the Company
had $2,174.6 million aggregate
principal amount in sales and repayments.
For the full year ended December 31, 2022, the principal
amount of new investments funded was $1,177.1 million. For this period, the Company
had $1,208.0 million aggregate
principal amount in sales and repayments.
Fourth Quarter
For the three months ended December 31, 2023, new
investment commitments totaled $1,296.9
million across 17 new portfolio companies and 14 existing
portfolio companies.
This compares to $500.2 million
for the three months ended September 30, 2023 across 7 new
portfolio companies and 6 existing portfolio companies, and
$211.2 million for the three months
ended December 31, 2022 across 6 new portfolio companies and 2
existing portfolio companies.
For the three months ended December 31, 2023, the principal
amount of new investments funded was $1,029.9 million. For this period, the Company
had $1,142.6 million aggregate
principal amount in sales and repayments.
For the three months ended September 30, 2023, the
principal amount of new investments funded was $386.6 million. For this period, the Company had
$389.7 million aggregate principal
amount in sales and repayments.
For the three months ended December 31,
2022, the principal amount of new investments funded was
$184.1 million. For this period, the
Company had $115.7 million aggregate
principal amount in sales and repayments.
As of December 31, 2023 and September 30, 2023, the
Company had investments in 193 and 187 portfolio companies with an
aggregate fair value of $12.7 billion
and $12.9 billion, respectively. As
of December 31, 2023, the average investment size in each
portfolio company was $65.9 million
based on fair value.
As of December 31, 2023, based on fair value, our portfolio
consisted of 68.1% first lien senior secured debt investments,
14.0% second lien senior secured debt investments, 2.3% unsecured
debt investments, 2.7% joint ventures3, 3.4% preferred
equity investments, and 9.5% common equity investments.
As of September 30, 2023, based on fair value, our
portfolio consisted of 68.9% first lien senior secured debt
investments, 13.8% second lien senior secured debt investments,
2.1% unsecured debt investments, 2.9% joint ventures3,
3.1% preferred equity investments, and 9.2% common equity
investments.
As of December 31, 2023 and September 30, 2023,
approximately 82.1% and 82.7% of the portfolio was invested in
secured debt, respectively. As of December 31, 2023, 97.4% of
our debt investments based on fair value in our portfolio were at
floating rates.
As of December 31, 2023 and September 30, 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 12.4% and 12.3%,
respectively, and the weighted average total yield of accruing debt
and income-producing securities at amortized cost (which includes
interest income and amortization of fees and discounts) was 12.5%
and 12.4%, respectively.
As of December 31, 2023, 4
portfolio companies with an aggregate fair value of $116.6 million were on non-accrual status,
representing 1.1% of the total fair value of the debt
portfolio.
RESULTS OF OPERATIONS FOR THE FULL YEAR AND QUARTER ENDED
DECEMBER 31, 2023
Investment Income
Investment income increased
to $1.6 billion for the full year
ended December 31, 2023 from $1.2
billion for the full year ended December 31, 2022,
primarily due to an increase in our portfolio's weighted average
yield, partially offset by a decrease in our debt portfolio at par.
Included in investment income is dividend income which increased
from period to period. Also included in investment income are other
fees such as prepayment fees and accelerated amortization of
upfront fees from unscheduled paydowns. Period over period, income
generated from these fees increased due to an increase in repayment
activity for the period. Other income decreased period over period
due to a decrease in incremental fee income, which are fees that
are generally available to us as a result of closing investments
and normally paid at the time of closing. We expect that investment
income will vary based on a variety of factors including the pace
of our originations and repayments.
Investment income increased to $411.2
million for the three months ended December 31, 2023
from $350.5 million for the three
months ended December 31, 2022.
Expenses
Total expenses increased to
$815.7 million for the full year
ended December 31, 2023 from $639.5
million for the full year ended December 31, 2022,
primarily due to an increase in interest expense and incentive
fees. The increase in interest expense was driven by an increase in
average daily borrowings coupled with an increase in the average
interest rate. As a percentage of total assets, professional fees,
directors' fees and other general and administrative expenses
remained relatively consistent period over period.
Total expenses increased to $207.9
million for the three months ended December 31, 2023
from $186.2 million for the three
months ended December 31, 2022.
Liquidity and Capital Resources
As of
December 31, 2023, we had
$659.7 million in cash and restricted
cash, $7.2 billion in total principal
value of debt outstanding, and $1.4
billion of undrawn capacity on our credit facilities. The
Company's weighted average interest rate on debt outstanding was
5.6% and 5.6% for the three months ended December 31, 2023 and September 30, 2023, respectively. Ending net debt
to equity was 1.09x and 1.13x as of December
31, 2023 and September 30,
2023, respectively.
CONFERENCE CALL AND WEBCAST INFORMATION
Conference Call Information:
The conference
call will be broadcast live on February 22,
2024 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: 13743048
|
|
|
|
|
|
|
|
(1)
|
Total return calculated
using LTM dividends paid and stock appreciation divided by net
asset value.
|
(2)
|
NII ROE is calculated
as annualized Q4'23 net investment income divided by average Q4'23
and Q3'23 net asset value.
|
(3)
|
This was disclosed as
"Investment funds and vehicles" prior to Q2 2023.
|
ABOUT BLUE OWL CAPITAL CORPORATION
Blue Owl Capital Corporation (NYSE: OBDC) is a specialty finance
company focused on lending to U.S. middle-market companies. As of
December 31, 2023, OBDC had investments in 193 portfolio
companies with an aggregate fair value of $12.7 billion. OBDC has elected to be regulated
as a business development company under the Investment Company Act
of 1940, as amended. OBDC is externally managed by Blue Owl Credit
Advisors LLC, an SEC-registered investment adviser that is an
indirect affiliate of Blue Owl Capital Inc. ("Blue Owl") (NYSE:
OWL) and is a part of Blue Owl's Credit platform.
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 Clarkson
pro-blueowl@prosek.com
FINANCIAL
HIGHLIGHTS
|
|
|
For the three months
ended
|
($ in thousands, except
per share amounts)
|
December 31,
2023
|
September 30,
2023
|
|
December 31,
2022
|
Investments at Fair
Value
|
$
12,713,348
|
$
12,896,158
|
|
$
13,010,345
|
Total Assets
|
$
13,511,396
|
$
13,461,820
|
|
$
13,584,853
|
Net Asset Value Per
Share
|
$
15.45
|
$
15.40
|
|
$
14.99
|
|
|
|
|
|
Investment
Income
|
$
411,227
|
$
399,022
|
|
$
350,506
|
Net Investment
Income
|
$
199,021
|
$
190,053
|
|
$
162,464
|
Net Income
|
$
188,969
|
$
206,938
|
|
$
191,888
|
|
|
|
|
|
Net Investment Income
Per Share
|
$
0.51
|
$
0.49
|
|
$
0.41
|
Net Realized and
Unrealized Gains (and Losses) Per Share
|
$
(0.03)
|
$
0.04
|
|
$
0.07
|
Net Income Per
Share
|
$
0.48
|
$
0.53
|
|
$
0.49
|
Distributions Declared
from Net Investment Income Per Share
|
$
0.35
|
$
0.33
|
|
$
0.33
|
Supplemental
Distributions Declared from Net Investment Income Per
Share
|
$
0.08
|
$
0.08
|
|
$
0.04
|
Weighted Average Yield
of Accruing Debt and Income Producing Securities at Fair
Value
|
12.4 %
|
12.3 %
|
|
11.5 %
|
Weighted Average Yield
of Accruing Debt and Income Producing Securities at Amortized
Cost
|
12.5 %
|
12.4 %
|
|
11.5 %
|
Percentage of Debt
Investment Commitments at Floating Rates
|
97.4 %
|
97.7 %
|
|
98.3 %
|
CONSOLIDATED
STATEMENTS OF ASSETS AND LIABILITIES
(Amounts in
thousands, except share and per share amounts)
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
|
Investments at fair
value
|
|
|
|
|
Non-controlled,
non-affiliated investments (amortized cost of $11,271,962 and
$12,133,062, respectively)
|
|
$
11,264,956
|
|
$
12,010,369
|
Non-controlled,
affiliated investments (amortized cost of $19,004 and $6,224,
respectively)
|
|
19,988
|
|
6,175
|
Controlled, affiliated
investments (amortized cost of $1,341,236, and $906,846,
respectively)
|
|
1,428,404
|
|
993,801
|
Total investments at
fair value (amortized cost of $12,632,202 and $13,046,132,
respectively)
|
|
12,713,348
|
|
13,010,345
|
Cash (restricted cash
of $87,067 and $96,420, respectively)
|
|
658,702
|
|
444,278
|
Foreign cash (cost of
$946 and $809, respectively)
|
|
956
|
|
809
|
Interest
receivable
|
|
112,260
|
|
108,085
|
Receivable from a
controlled affiliate
|
|
22,978
|
|
17,709
|
Prepaid expenses and
other assets
|
|
3,152
|
|
3,627
|
Total
Assets
|
|
$
13,511,396
|
|
$
13,584,853
|
Liabilities
|
|
|
|
|
Debt (net of
unamortized debt issuance costs of $81,492 and $95,647,
respectively)
|
|
$
7,077,088
|
|
$
7,281,744
|
Distribution
payable
|
|
136,407
|
|
129,517
|
Management fee
payable
|
|
47,711
|
|
47,583
|
Incentive fee
payable
|
|
42,217
|
|
34,462
|
Payables to
affiliates
|
|
3,835
|
|
6,351
|
Accrued expenses and
other liabilities
|
|
182,745
|
|
202,793
|
Total
Liabilities
|
|
7,490,003
|
|
7,702,450
|
Commitments and
contingencies (Note 7)
|
|
|
|
|
Net
Assets
|
|
|
|
|
Common shares $0.01 par
value, 500,000,000 shares authorized; 389,732,868 and
392,476,687
shares issued and
outstanding, respectively
|
|
3,897
|
|
3,925
|
Additional
paid-in-capital
|
|
5,924,002
|
|
5,970,674
|
Accumulated
undistributed (overdistributed) earnings
|
|
93,494
|
|
(92,196)
|
Total Net
Assets
|
|
6,021,393
|
|
5,882,403
|
Total Liabilities
and Net Assets
|
|
$
13,511,396
|
|
$
13,584,853
|
Net Asset Value Per
Share
|
|
$
15.45
|
|
$
14.99
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Amounts in
thousands, except share amounts)
|
|
|
For the Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2021
|
Investment
Income
|
|
|
|
|
|
Investment income from
non-controlled, non-affiliated investments:
|
|
|
|
|
|
Interest
income
|
$ 1,209,536
|
|
$ 931,870
|
|
$ 887,753
|
Payment-in-kind
("PIK") interest income
|
169,763
|
|
113,256
|
|
53,185
|
Dividend
income
|
72,936
|
|
52,422
|
|
28,052
|
Other
income
|
14,755
|
|
18,514
|
|
25,845
|
Total investment income
from non-controlled, non-affiliated investments
|
1,466,990
|
|
1,116,062
|
|
994,835
|
Investment income from
non-controlled, affiliated investments:
|
|
|
|
|
|
Dividend
income
|
252
|
|
—
|
|
—
|
Total investment income
from non-controlled, affiliated investments:
|
252
|
|
—
|
|
—
|
Investment income from
controlled, affiliated investments:
|
|
|
|
|
|
Interest
income
|
20,174
|
|
8,206
|
|
5,531
|
Payment-in-kind
("PIK") interest income
|
1,934
|
|
—
|
|
—
|
Dividend
income
|
91,802
|
|
77,047
|
|
20,394
|
Other
Income
|
942
|
|
689
|
|
643
|
Total investment income
from controlled, affiliated investments
|
114,852
|
|
85,942
|
|
26,568
|
Total Investment
Income
|
1,582,094
|
|
1,202,004
|
|
1,021,403
|
Expenses
|
|
|
|
|
|
Interest
expense
|
436,306
|
|
307,539
|
|
219,132
|
Management
fees
|
191,622
|
|
188,755
|
|
178,472
|
Performance based
incentive fees
|
159,857
|
|
118,091
|
|
103,968
|
Professional
fees
|
15,532
|
|
14,709
|
|
15,071
|
Directors'
fees
|
1,280
|
|
1,092
|
|
1,021
|
Other general and
administrative
|
11,127
|
|
9,290
|
|
9,593
|
Total Operating
Expenses
|
815,724
|
|
639,476
|
|
527,257
|
Net Investment
Income (Loss) Before Taxes
|
766,370
|
|
562,528
|
|
494,146
|
Income tax expense
(benefit)
|
12,759
|
|
5,810
|
|
4,009
|
Net Investment
Income (Loss) After Taxes
|
$ 753,611
|
|
$ 556,718
|
|
$ 490,137
|
Net Realized and
Change in Unrealized Gain (Loss)
|
|
|
|
|
|
Net change in
unrealized gain (loss):
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
$
90,497
|
|
$
(133,980)
|
|
$ 148,300
|
Non-controlled,
affiliated investments
|
1,033
|
|
(49)
|
|
—
|
Controlled, affiliated
investments
|
213
|
|
45,602
|
|
44,081
|
Translation of assets
and liabilities in foreign currencies
|
5,808
|
|
(2,118)
|
|
(3,953)
|
Income tax (provision)
benefit
|
(4,605)
|
|
(3,964)
|
|
(8,604)
|
Total Net Change in
Unrealized Gain (Loss)
|
92,946
|
|
(94,509)
|
|
179,824
|
Net realized gain
(loss):
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
(52,003)
|
|
5,171
|
|
(46,332)
|
Foreign currency
transactions
|
(1,242)
|
|
(1,025)
|
|
1,253
|
Total Net Realized
Gain (Loss)
|
(53,245)
|
|
4,146
|
|
(45,079)
|
Total Net Realized
and Change in Unrealized Gain (Loss)
|
39,701
|
|
(90,363)
|
|
134,745
|
Net Increase
(Decrease) in Net Assets Resulting from Operations
|
$ 793,312
|
|
$ 466,355
|
|
$ 624,882
|
Earnings Per Share
- Basic and Diluted
|
$
2.03
|
|
$
1.18
|
|
$
1.59
|
Weighted Average
Shares Outstanding - Basic and Diluted
|
390,104,585
|
|
394,006,852
|
|
392,297,907
|
PORTFOLIO AND
INVESTMENT ACTIVITY
|
|
|
|
For the Year Ended
December 31,
|
($ in
thousands)
|
|
2023
|
|
2022
|
|
2021
|
New investment
commitments
|
|
|
|
|
|
|
Gross
originations
|
|
$
2,165,911
|
|
$
1,997,087
|
|
$
7,456,901
|
Less: Sell
downs
|
|
(10,803)
|
|
(224,665)
|
|
(632,072)
|
Total new investment
commitments
|
|
$
2,155,108
|
|
$
1,772,422
|
|
$
6,824,829
|
Principal amount of
investments funded:
|
|
|
|
|
|
|
First-lien senior
secured debt investments
|
|
$
1,523,503
|
|
$
788,717
|
|
$
4,369,794
|
Second-lien senior
secured debt investments
|
|
—
|
|
6,883
|
|
846,299
|
Unsecured debt
investments
|
|
—
|
|
90,451
|
|
132,288
|
Preferred equity
investments
|
|
36,377
|
|
90,110
|
|
238,367
|
Common equity
investments
|
|
86,457
|
|
131,777
|
|
113,780
|
Joint
Ventures(4)
|
|
34,125
|
|
69,125
|
|
141,876
|
Total principal amount
of investments funded
|
|
$
1,680,462
|
|
$
1,177,064
|
|
$
5,842,404
|
Principal amount of
investments sold or repaid:
|
|
|
|
|
|
|
First-lien senior
secured debt investments
|
|
$
(2,069,540)
|
|
$
(1,116,583)
|
|
$
(3,343,381)
|
Second-lien senior
secured debt investments
|
|
(97,713)
|
|
(29,800)
|
|
(910,582)
|
Unsecured debt
investments
|
|
(193)
|
|
(31,427)
|
|
—
|
Preferred equity
investments
|
|
(6,952)
|
|
(22,843)
|
|
—
|
Common equity
investments
|
|
(195)
|
|
(7,350)
|
|
(4,827)
|
Joint
Ventures(4)
|
|
—
|
|
—
|
|
—
|
Total principal amount
of investments sold or repaid
|
|
$ (2,174,593)
|
|
$ (1,208,003)
|
|
$ (4,258,790)
|
Number of new
investment commitments in new portfolio
companies(1)
|
|
32
|
|
52
|
|
67
|
Average new
investment commitment amount
|
|
$
53,397
|
|
$
22,757
|
|
$
82,831
|
Weighted average
term for new debt investment commitments (in years)
|
|
5.6
|
|
5.6
|
|
6.3
|
Percentage of new
debt investment commitments at floating rates
|
|
96.2 %
|
|
95.1 %
|
|
98.1 %
|
Percentage of new
debt investment commitments at fixed rates
|
|
3.8 %
|
|
4.9 %
|
|
1.9 %
|
Weighted average
interest rate of new debt investment
commitments(2)(3)
|
|
11.7 %
|
|
10.4 %
|
|
7.3 %
|
Weighted average
spread over applicable base rate of new floating rate debt
investment commitments
|
|
6.3 %
|
|
6.9 %
|
|
6.4 %
|
|
|
|
|
|
|
|
|
(1)
|
Number of new
investment commitments represents commitments to a particular
portfolio company.
|
(2)
|
For the year ended
December 31, 2023 and December 31, 2022, assumes each floating rate
commitment is subject to the greater of the interest rate floor (if
applicable) or 3-month SOFR, which was 5.33% and 4.59% as of
December 31, 2023 and December 31, 2022, respectively.
|
(3)
|
For the year ended
December 31, 2021, assumes each floating rate commitment is subject
to the greater of the interest rate floor (if applicable) or
3-month LIBOR, which was 0.21% as of December 31, 2021.
|
(4)
|
This was disclosed as
"Investment funds and vehicles" as of December 31, 2022 and
2021.
|
View original
content:https://www.prnewswire.com/news-releases/blue-owl-capital-corporation-reports-full-year-results-and-fourth-quarter-net-investment-income-per-share-of-0-51-and-nav-per-share-of-15-45-increases-quarterly-dividend-302068072.html
SOURCE Blue Owl Capital Corporation