NEW YORK, Nov. 3, 2021 /PRNewswire/ -- Owl Rock Capital
Corporation (NYSE: ORCC, or the "Company") today reported net
investment income of $130.5 million, or $0.33 per share, and net income of
$142.9 million, or $0.36 per share, for the third
quarter ended September 30,
2021. Reported net asset value per share was $14.95 at September
30, 2021 as compared to $14.90 at June 30,
2021.
"We are very pleased to report strong results this quarter. We
experienced a record level of both originations and repayments and
were able to seamlessly redeploy capital from those repaid
investments into equally attractive new investments," commented
Craig W. Packer, Chief Executive
Officer of Owl Rock Capital Corporation. "We are very proud of
where our portfolio stands today and to achieve the important
milestone of earning our dividend from net investment income this
quarter with continued strong credit performance."
The Company's Board of Directors has declared a fourth quarter
2021 dividend of $0.31 per share for
stockholders of record as of December 31,
2021, payable on or before January
31, 2022.
PORTFOLIO AND INVESTING ACTIVITY
For the three months ended September 30,
2021, new investment commitments totaled $2,794.0 million across 21 new
portfolio companies and 13 existing portfolio companies. This
compares to $1,578.1 million for
the three months ended June 30,
2021 across 16 new portfolio companies and 12 existing
portfolio companies.
For the three months ended September 30,
2021, the principal amount of new investments funded was
$2,292.6 million. For this
period, the Company had $2,094.4 million aggregate principal amount
in exits and repayments.
For the three months ended June 30,
2021, the principal amount of new investments funded was
$1,405.6 million. For this
period, the Company had $742.7 million aggregate principal amount in
exits and repayments.
As of September 30, 2021 and
June 30, 2021, the Company had
investments in 130 and 129 portfolio companies with an
aggregate fair value of $12.1 billion
and $11.9 billion, respectively.
As of September 30, 2021, the average
investment size in each portfolio company was $93.2 million based on fair value.
As of September 30, 2021, based on
fair value, our portfolio consisted of 77.0% first lien senior
secured debt investments, 14.5% second lien senior secured debt
investments, 1.6% unsecured notes, 1.5% preferred equity
investments, 3.5% common equity investments and 1.9% investment
funds and vehicles.
As of June 30, 2021, based on fair
value, our portfolio consisted of 76.2% first lien senior secured
debt investments, 16.5% second lien senior secured debt
investments, 1.6% unsecured notes, 1.5% preferred equity
investments, 2.8% common equity investments and 1.4% investment
funds and vehicles.
As of September 30, 2021 and
June 30, 2021, based on fair value,
approximately 91.5% and 92.7% of the portfolio was invested in
secured debt, respectively. As of September
30, 2021, 99.9% of our debt investments based on fair value
in our portfolio were at floating rates.
As of September 30, 2021 and
June 30, 2021, 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)1 was 7.9% and 8.0%, 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)1
was 7.9% and 8.0%, respectively.
As of September 30, 2021, 2
investments with an aggregate fair value of $44.6 million were on non-accrual status,
representing 0.4% of the total fair value of the portfolio.
________________
(1) For non-stated rate income producing investments, computed
based on (a) the dividend or interest income earned for the
respective trailing twelve months ended on the measurement date,
divided by (b) the ending cost or fair value. In instances
where historical dividend or interest income data is not available
or not representative for the trailing twelve months ended, the
dividend or interest income is annualized. Prior to 9/30/2021,
non-stated rate income producing investments were computed based on
(a) the IRR on the measurement date, divided by (b) the ending cost
or fair value. As of June 30, 2021,
weighted average total yield of accruing debt and income producing
securities at fair value and cost was reported at 8.3% and 8.2%,
respectively.
RESULTS OF OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 2021
Investment Income
Investment income increased
to $269.2 million for the three
months ended September 30,
2021 from $187.1 million
for the three months ended September 30,
2020, primarily due to an increase in our investment
portfolio. Included in interest income is dividend income, which
increased period over period, and other fees such as prepayment
fees and accelerated amortization of upfront fees from unscheduled
paydowns. Period over period, income generated from these other
fees also increased, which is attributed to the increase in
repayment activity.
Expenses
Total expenses increased to
$137.0 million for the three months
ended September 30, 2021 from
$60.8 million, after the effect of
the management and incentive fee waivers, for the three months
ended September 30, 2020, primarily
due to expiration of the management and incentive fee waivers in
October 2020 and an increase in
management fees and interest expense. Management fees increased
period over period due to an increase in assets. The increase in
interest expense was primarily driven by an increase in average
daily borrowings, offset by a decrease in the average interest rate
period over period.
Liquidity and Capital Resources
As of
September 30, 2021, we had
$794.7 million in cash and
restricted cash, $7.0 billion in
total principal value of debt outstanding, and $1.6 billion of undrawn capacity on our
credit facilities. The Company's weighted average interest rate on
debt outstanding was 2.9% and 3.0% for the three months ended
September 30, 2021 and
June 30, 2021, respectively. Ending
debt to equity was 1.06x and 1.00x for the three months ended
September 30, 2021 and
June 30, 2021, respectively.
Conference Call and Webcast Information
Conference Call Information:
The conference
call will be broadcast live on November 4,
2021 at 10:00 a.m. Eastern
Time on the Investor Resources section of ORCC's website at
www.OwlRockCapitalCorporation.com. Please visit the website to test
your connection before the webcast. For a slide presentation that
complements the earnings conference call, please visit the Events
& Presentations page of the Investor Resources section of
ORCC's website.
Participants are also invited to access the conference call by
dialing one of the following numbers:
- Domestic: 1 (888) 440-4182
- International: (646) 960-0653
- Conference ID: 7406736
All callers will need to enter the Conference ID followed by the
# sign and reference "Owl Rock Capital Corporation" once connected
with the operator. All callers are asked to dial in 10-15 minutes
prior to the call so that name and company information can be
collected.
Replay Information:
An archived replay will be
available for 14 days via a webcast link located on the Investor
Resources section of ORCC's website, and via the dial-in numbers
listed below:
- Domestic: 1 (800) 770-2030
- International: (647) 362-9199
- Conference ID: 7406736
FINANCIAL
HIGHLIGHTS
|
|
|
|
For the three
months ended
|
|
($ in thousands
except per share data)
|
|
September 30,
2021
|
|
|
June 30,
2021
|
|
|
September 30,
2020
|
|
Investments at Fair
Value
|
|
$
|
12,110,098
|
|
|
$
|
11,906,872
|
|
|
$
|
9,918,302
|
|
Total
Assets
|
|
$
|
13,075,878
|
|
|
$
|
12,635,426
|
|
|
$
|
10,234,261
|
|
Net Asset Value Per
Share
|
|
$
|
14.95
|
|
|
$
|
14.90
|
|
|
$
|
14.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
Income
|
|
$
|
269,191
|
|
|
$
|
249,015
|
|
|
$
|
187,059
|
|
Net Investment
Income
|
|
$
|
130,499
|
|
|
$
|
119,129
|
|
|
$
|
127,437
|
|
Net Income
|
|
$
|
142,851
|
|
|
$
|
150,180
|
|
|
$
|
216,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income
Per Share
|
|
$
|
0.33
|
|
|
$
|
0.30
|
|
|
$
|
0.33
|
|
Net Realized and
Unrealized Gains (and Losses)
Per Share
|
|
$
|
0.03
|
|
|
$
|
0.08
|
|
|
$
|
0.23
|
|
Net Income Per
Share
|
|
$
|
0.36
|
|
|
$
|
0.38
|
|
|
$
|
0.56
|
|
Distributions
Declared from Net Investment Income Per Share
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Yield of Accruing Debt
and Income Producing Securities at Fair
Value(1)
|
|
|
7.9
|
%
|
|
|
8.0
|
%
|
|
|
8.0
|
%
|
Weighted Average
Yield of Accruing Debt
and Income Producing Securities at Amortized
Cost(1)
|
|
|
7.9
|
%
|
|
|
8.0
|
%
|
|
|
7.9
|
%
|
Percentage of Debt
Investment Commitments at
Floating
Rates
|
|
|
99.9
|
%
|
|
|
99.9
|
%
|
|
|
98.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For non-stated rate
income producing investments, computed based on (a) the dividend or
interest income earned for the respective trailing twelve months
ended on the measurement date, divided by (b) the ending cost or
fair value. In instances where historical dividend or
interest income data is not available or not representative for the
trailing twelve months ended, the dividend or interest income is
annualized. Prior to 9/30/2021, non-stated rate income producing
investments were computed based on (a) the IRR on the measurement
date, divided by (b) the ending cost or fair value. As of June 30,
2021, weighted average total yield of accruing debt and income
producing securities at fair value and cost was reported at 8.3%
and 8.2%, respectively. As of September 30, 2020, weighted average
total yield of accruing debt and income producing securities at
fair value and cost was reported at 8.1% and 8.0%,
respectively.
|
CONSOLIDATED
STATEMENTS OF ASSETS AND LIABILITIES
|
|
($ in
thousands except per share data)
|
|
September 30,
2021
(Unaudited)
|
|
|
December 31,
2020
|
|
Assets
|
|
|
|
|
|
|
|
|
Investments at fair
value
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
(amortized cost of $11,547,197 and $10,653,613,
respectively)
|
|
$
|
11,584,751
|
|
|
$
|
10,569,691
|
|
Controlled, affiliated
investments
(amortized cost of $527,704 and $275,105, respectively)
|
|
|
525,347
|
|
|
|
272,381
|
|
Total investments at
fair value
(amortized cost of $12,074,901 and $10,928,718,
respectively)
|
|
|
12,110,098
|
|
|
|
10,842,072
|
|
Cash (restricted cash
of $14,217 and $8,841, respectively)
|
|
|
779,581
|
|
|
|
347,917
|
|
Foreign cash (cost of
$15,326 and $9,641, respectively)
|
|
|
15,148
|
|
|
|
9,994
|
|
Interest
receivable
|
|
|
62,377
|
|
|
|
57,108
|
|
Receivable for
investments sold
|
|
|
77,426
|
|
|
|
6,316
|
|
Receivable from a
controlled affiliate
|
|
|
4,127
|
|
|
|
2,347
|
|
Prepaid expenses and
other assets
|
|
|
27,121
|
|
|
|
38,603
|
|
Total
Assets
|
|
$
|
13,075,878
|
|
|
$
|
11,304,357
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Debt (net of
unamortized debt issuance costs of $114,874 and $91,085,
respectively)
|
|
$
|
6,934,942
|
|
|
$
|
5,292,722
|
|
Distribution
payable
|
|
|
121,877
|
|
|
|
152,087
|
|
Management fee
payable
|
|
|
45,583
|
|
|
|
35,936
|
|
Incentive fee
payable
|
|
|
27,682
|
|
|
|
19,070
|
|
Payables to
affiliates
|
|
|
5,399
|
|
|
|
6,527
|
|
Accrued expenses and
other liabilities
|
|
|
63,403
|
|
|
|
51,581
|
|
Total
Liabilities
|
|
|
7,198,886
|
|
|
|
5,557,923
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Net
Assets
|
|
|
|
|
|
|
|
|
Common shares $0.01
par value, 500,000,000 shares authorized;
393,152,554 and 389,966,688 shares issued and outstanding,
respectively
|
|
|
3,931
|
|
|
|
3,900
|
|
Additional
paid-in-capital
|
|
|
5,985,429
|
|
|
|
5,940,979
|
|
Total distributable
earnings (losses)
|
|
|
(112,368)
|
|
|
|
(198,445)
|
|
Total Net
Assets
|
|
|
5,876,992
|
|
|
|
5,746,434
|
|
Total Liabilities
and Net Assets
|
|
$
|
13,075,878
|
|
|
$
|
11,304,357
|
|
Net Asset Value Per
Share
|
|
$
|
14.95
|
|
|
$
|
14.74
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
For the Three
Months
Ended September 30,
|
|
|
For the Nine
Months
Ended September 30,
|
|
($ in
thousands except per share data)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Investment
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income
from non-controlled, non-affiliated investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
241,966
|
|
|
$
|
179,597
|
|
|
$
|
686,314
|
|
|
$
|
561,236
|
|
Dividend
Income
|
|
|
10,600
|
|
|
|
2,688
|
|
|
|
19,924
|
|
|
|
3,608
|
|
Other
income
|
|
|
7,942
|
|
|
|
2,507
|
|
|
|
15,559
|
|
|
|
10,473
|
|
Total investment
income from non-controlled, non-affiliated investments
|
|
|
260,508
|
|
|
|
184,792
|
|
|
|
721,797
|
|
|
|
575,317
|
|
Investment income
from controlled, affiliated investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
1,392
|
|
|
|
—
|
|
|
|
4,033
|
|
|
|
—
|
|
Dividend
income
|
|
|
7,128
|
|
|
|
2,267
|
|
|
|
13,469
|
|
|
|
6,716
|
|
Other
Income
|
|
|
163
|
|
|
|
—
|
|
|
|
480
|
|
|
|
—
|
|
Total investment
income from controlled, affiliated investments
|
|
|
8,683
|
|
|
|
2,267
|
|
|
|
17,982
|
|
|
|
6,716
|
|
Total Investment
Income
|
|
|
269,191
|
|
|
|
187,059
|
|
|
|
739,779
|
|
|
|
582,033
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
56,516
|
|
|
|
37,391
|
|
|
|
159,037
|
|
|
|
110,533
|
|
Management
fee
|
|
|
45,586
|
|
|
|
36,460
|
|
|
|
131,703
|
|
|
|
104,852
|
|
Performance based
incentive fees
|
|
|
27,682
|
|
|
|
22,302
|
|
|
|
74,727
|
|
|
|
70,500
|
|
Professional
fees
|
|
|
3,849
|
|
|
|
3,330
|
|
|
|
10,966
|
|
|
|
9,782
|
|
Directors'
fees
|
|
|
239
|
|
|
|
179
|
|
|
|
757
|
|
|
|
633
|
|
Other general and
administrative
|
|
|
3,140
|
|
|
|
1,659
|
|
|
|
7,302
|
|
|
|
5,564
|
|
Total Operating
Expenses
|
|
|
137,012
|
|
|
|
101,321
|
|
|
|
384,492
|
|
|
|
301,864
|
|
Management and
incentive fees waived
|
|
|
—
|
|
|
|
(40,531)
|
|
|
|
—
|
|
|
|
(122,925)
|
|
Net Operating
Expenses
|
|
|
137,012
|
|
|
|
60,790
|
|
|
|
384,492
|
|
|
|
178,939
|
|
Net Investment
Income (Loss) Before Taxes
|
|
|
132,179
|
|
|
|
126,269
|
|
|
|
355,287
|
|
|
|
403,094
|
|
Income tax expense
(benefit), including excise tax expense (benefit)
|
|
|
1,680
|
|
|
|
(1,168)
|
|
|
|
3,004
|
|
|
|
239
|
|
Net Investment
Income (Loss) After Taxes
|
|
$
|
130,499
|
|
|
$
|
127,437
|
|
|
$
|
352,283
|
|
|
$
|
402,855
|
|
Net Realized and
Change in Unrealized Gain (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in
unrealized gain (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
$
|
14,475
|
|
|
$
|
80,619
|
|
|
$
|
133,961
|
|
|
$
|
(196,001)
|
|
Income tax (provision)
benefit
|
|
|
(4,383)
|
|
|
|
—
|
|
|
|
(8,605)
|
|
|
|
—
|
|
Controlled affiliated
investments
|
|
|
985
|
|
|
|
4,615
|
|
|
|
367
|
|
|
|
(3,536)
|
|
Translation of assets
and liabilities in foreign currencies
|
|
|
(796)
|
|
|
|
3,113
|
|
|
|
(3,716)
|
|
|
|
3,237
|
|
Total Net Change
in Unrealized Gain (Loss)
|
|
|
10,281
|
|
|
|
88,347
|
|
|
|
122,007
|
|
|
|
(196,300)
|
|
Net realized gain
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
2,018
|
|
|
|
2,537
|
|
|
|
(24,656)
|
|
|
|
2,885
|
|
Foreign currency
transactions
|
|
|
53
|
|
|
|
(2,274)
|
|
|
|
1,242
|
|
|
|
(2,364)
|
|
Total Net Realized
Gain (Loss)
|
|
|
2,071
|
|
|
|
263
|
|
|
|
(23,414)
|
|
|
|
521
|
|
Total Net Realized
and Change in Unrealized Gain (Loss)
|
|
|
12,352
|
|
|
|
88,610
|
|
|
|
98,593
|
|
|
|
(195,779)
|
|
Net Increase
(Decrease) in Net Assets Resulting from Operations
|
|
$
|
142,851
|
|
|
$
|
216,047
|
|
|
$
|
450,876
|
|
|
$
|
207,076
|
|
Earnings Per Share
- Basic and Diluted
|
|
$
|
0.36
|
|
|
$
|
0.56
|
|
|
$
|
1.15
|
|
|
$
|
0.53
|
|
Weighted Average
Shares Outstanding - Basic and Diluted
|
|
|
392,715,513
|
|
|
|
386,534,213
|
|
|
|
391,893,306
|
|
|
|
388,474,850
|
|
PORTFOLIO AND
INVESTMENT ACTIVITY
|
|
|
|
For the Three
Months Ended September 30,
|
|
($ in
thousands)
|
|
2021
|
|
|
2020(3)
|
|
New investment
commitments
|
|
|
|
|
|
|
|
|
Gross
originations
|
|
$
|
3,257,404
|
|
|
|
957,015
|
|
Less: Sell
downs
|
|
|
(463,419)
|
|
|
|
(113,404)
|
|
Total new investment
commitments
|
|
$
|
2,793,985
|
|
|
$
|
843,611
|
|
Principal amount
of investments funded:
|
|
|
|
|
|
|
|
|
First-lien senior
secured debt investments
|
|
$
|
2,154,036
|
|
|
$
|
483,756
|
|
Second-lien senior
secured debt investments
|
|
|
71,000
|
|
|
|
121,592
|
|
Unsecured debt
investments
|
|
|
—
|
|
|
|
41,463
|
|
Preferred equity
investments
|
|
|
975
|
|
|
|
—
|
|
Common equity
investments
|
|
|
8,820
|
|
|
|
—
|
|
Investment funds and
vehicles
|
|
|
57,750
|
|
|
|
—
|
|
Total principal amount
of investments funded
|
|
$
|
2,292,581
|
|
|
$
|
646,811
|
|
Principal amount
of investments sold or repaid:
|
|
|
|
|
|
|
|
|
First-lien senior
secured debt investments
|
|
$
|
(1,815,765)
|
|
|
$
|
(44,711)
|
|
Second-lien senior
secured debt investments
|
|
|
(278,613)
|
|
|
|
(3,517)
|
|
Unsecured debt
investments
|
|
|
—
|
|
|
|
—
|
|
Preferred Equity
investments
|
|
|
—
|
|
|
|
—
|
|
Common Equity
investments
|
|
|
—
|
|
|
|
—
|
|
Investment funds and
vehicles
|
|
|
—
|
|
|
|
—
|
|
Total principal amount
of investments sold or repaid
|
|
$
|
(2,094,378)
|
|
|
$
|
(48,228)
|
|
Number of new
investment commitments in new
portfolio companies(1)
|
|
|
21
|
|
|
8
|
|
Average new
investment commitment amount
|
|
|
104,913
|
|
|
$
|
90,138
|
|
Weighted average
term for new debt investment
commitments (in years)
|
|
|
5.7
|
|
|
|
6.1
|
|
Percentage of new
debt investment commitments at
floating
rates
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
Percentage of new
debt investment commitments at
fixed
rates
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
Weighted average
interest rate of new debt investment
commitments(2)
|
|
|
7.1
|
%
|
|
|
8.2
|
%
|
Weighted average
spread over LIBOR of new floating
rate debt investment commitments
|
|
|
6.2
|
%
|
|
|
7.2
|
%
|
________________
|
(1)
|
Number of new
investment commitments represents commitments to a particular
portfolio company.
|
(2)
|
Assumes each floating
rate commitment is subject to the greater of the interest rate
floor (if applicable) or 3-month LIBOR, which was 0.13% and 0.23%
as of September 30, 2021 and 2020,
respectively.
|
(3)
|
As of September 30,
2020, preferred equity investments and common equity investments
were reported in aggregate as equity investments.
|
ABOUT OWL ROCK CAPITAL CORPORATION
Owl Rock Capital Corporation (NYSE: ORCC) is a specialty finance
company focused on lending to U.S. middle-market companies. As of
September 30, 2021, ORCC had
investments in 130 portfolio companies with an aggregate fair
value of $12.1 billion. ORCC has
elected to be regulated as a business development company under the
Investment Company Act of 1940, as amended. ORCC is externally
managed by Owl Rock Capital Advisors LLC, an SEC-registered
investment adviser that is an indirect affiliate of Blue Owl
Capital Inc. ("Blue Owl") (NYSE: OWL) and part of Owl Rock, a
division of Blue Owl.
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 ORCC, 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 ORCC'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 ORCC'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 ORCC makes them. ORCC 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
212-651-4705
orccir@blueowl.com
Media Contact:
Prosek Partners
David Wells / Josh Clarkson
pro-blueowl@prosek.com
View original
content:https://www.prnewswire.com/news-releases/owl-rock-capital-corp-reports-third-quarter-net-investment-income-per-share-of-0-33-and-nav-per-share-of-14-95--301415835.html
SOURCE Owl Rock Capital Corporation