Blue Owl Capital Corporation Announces Preliminary Fourth Quarter Financial Results and Portfolio Update
Rhea-AI Summary
Blue Owl Capital (NYSE: OBDC) has released preliminary Q4 2024 financial results and announced the completion of its merger with Blue Owl Capital III (OBDE) on January 13, 2025. The combined entity shows strong financial metrics with total assets of $18.3 billion and total net assets of $7.8 billion.
Key Q4 2024 metrics for OBDC include total investment income per share of $1.01, net investment income per share of $0.47, and a return on equity of 12.3%. The pro forma portfolio consists of 236 portfolio companies with a focus on first lien senior secured debt investments (77.9%). The portfolio shows strong diversification across industries, with internet software and services (11.1%), insurance (8.3%), and food and beverage (6.8%) being the top sectors.
The merger is expected to enhance liquidity, achieve lower financing costs, and generate operational efficiencies. The combined entity maintains a healthy portfolio quality with only 0.3% of investments on non-accrual status.
Positive
- Strong return on equity of 12.3% for OBDC in Q4 2024
- Low non-accrual rate of 0.3% in combined portfolio indicating high asset quality
- 90.8% of investments rated internally as 1- and 2-rated in combined portfolio
- Diversified portfolio across 236 companies reducing concentration risk
- Merger expected to generate cost savings and operational efficiencies
Negative
- Net realized/unrealized loss per share of $0.08 in Q4 2024
- Relatively high leverage with net debt-to-equity ratio of 1.20x post-merger
Insights
The Q4 2024 results and merger completion present a compelling financial picture. OBDC's total investment income per share of
The portfolio quality metrics are particularly strong, with
The merger enhances scale economies and should lead to improved financing costs and operational synergies. The combined entity's focus on first-lien senior secured debt (
The portfolio composition reveals sophisticated risk management. The highly diversified exposure across 236 companies with an average position size of
The merged entity's commitment to senior secured lending, combined with minimal exposure to higher-risk investments, creates a defensive positioning. The low non-accrual rate of
"OBDC's and OBDE's standalone fourth quarter performance reflects the consistent strength of our portfolios and positive momentum heading into 2025," commented Craig W. Packer, Chief Executive Officer of OBDC. "The successful closing of the merger subsequent to quarter end further improves our ability to deliver attractive risk-adjusted returns to all shareholders. The increased scale of the combined company positions OBDC to enhance its liquidity profile, achieve lower costs of financing and generate immediate operational efficiencies."
SELECT FINANCIAL RESULTS
For the Three Months Ended December 31, 2024 | ||
($ in millions, except per share amounts) | Actual (unaudited) | Actual (unaudited) |
Total investment income per share | $ 1.01 | $ 1.05 |
Net investment income per share | $ 0.47 | $ 0.43 |
Net realized/unrealized gain/(loss) per share | $ (0.08) | $ (0.08) |
Earnings gain/(loss) per share | $ 0.39 | $ 0.35 |
Return on equity1 | 12.3 % | 11.3 % |
As of December 31, 2024 | |||
($ in millions, except per share amounts) | Actual (unaudited) | Actual (unaudited) | Pro forma |
Cash, cash equivalents and restricted cash | $ 514 | $ 210 | $ 725 |
Total assets | $ 13,852 | $ 4,485 | $ 18,337 |
Total outstanding debt | $ 7,579 | $ 2,503 | $ 10,082 |
Total committed debt | $ 10,271 | $ 3,102 | $ 13,373 |
Total net assets | $ 5,953 | $ 1,839 | $ 7,792 |
Net asset value per share | $ 15.26 | $ 14.91 | $ 15.26 |
Net debt-to-equity | 1.19x | 1.25x | 1.20x |
Funding mix (on a committed basis): | |||
Revolving credit facility | 29.1 % | 22.6 % | 27.6 % |
CLO | 21.5 % | 8.4 % | 18.5 % |
SPV facility | 2.9 % | 42.7 % | 12.2 % |
Unsecured notes | 46.5 % | 26.3 % | 41.8 % |
PORTFOLIO HIGHLIGHTS
As of December 31, 2024 | |||||
At fair value unless otherwise noted ($ in millions) | Actual (unaudited) | Actual (unaudited) | Pro forma | ||
Total investments | $ 13,195 | $ 4,223 | $ 17,417 | ||
Top 15 investments | 32 % | 28 % | 29 % | ||
Top 25 investments | 44 % | 41 % | 40 % | ||
Number of portfolio companies | 227 | 189 | 236 | ||
Average position size | 0.4 % | 0.5 % | 0.4 % | ||
Asset class: | |||||
First lien senior secured debt investments | 75.6 % | 85.2 % | 77.9 % | ||
Second lien senior secured debt investments | 5.4 % | 4.5 % | 5.2 % | ||
Unsecured debt investments | 2.3 % | 1.6 % | 2.1 % | ||
Preferred equity investments | 2.8 % | 3.2 % | 2.9 % | ||
Common equity investments | 11.7 % | 5.4 % | 10.2 % | ||
Joint ventures | 2.2 % | 0.1 % | 1.7 % | ||
Industry diversification: | |||||
Internet software and services | 10.5 % | 12.8 % | 11.1 % | ||
Insurance | 7.6 % | 10.8 % | 8.3 % | ||
Food and beverage | 7.3 % | 5.5 % | 6.8 % | ||
Healthcare providers and services | 6.3 % | 8.4 % | 6.8 % | ||
Healthcare technology | 6.2 % | 7.3 % | 6.5 % | ||
Asset based lending and fund finance | 5.9 % | 1.0 % | 4.7 % | ||
Manufacturing | 5.9 % | 3.3 % | 5.2 % | ||
Business services | 4.7 % | 7.1 % | 5.3 % | ||
Buildings and real estate | 3.9 % | 3.3 % | 3.8 % | ||
Consumer products | 3.6 % | 2.8 % | 3.4 % | ||
Other industries | 38.1 % | 37.7 % | 38.0 % | ||
Non-accruals as a percentage of total investments | 0.4 % | 0.1 % | 0.3 % | ||
Internal 1- and 2-rated investments | 90.3 % | 92.6 % | 90.8 % | ||
1. Annualized Q4 2024 net investment income per share divided by average beginning and ending period net asset value per share. |
DISCLAIMERS
The preliminary financial estimates provided herein have been prepared by, and are the responsibility of, the Company's management. Neither KPMG LLP, the Company's independent registered public accounting firm, nor any other independent accountants, have audited, reviewed, compiled, or performed any procedures with respect to the accompanying preliminary financial data.
These estimates are subject to the completion of the Company's financial closing procedures and are not a comprehensive statement of our financial results as of December 31, 2024. Actual results may differ materially from these estimates as a result of the completion of the period and the Company's financial closing procedures, final adjustments and other developments which may arise between now and the time that the Company's financial results are finalized.
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:
BDC Investor Relations
Michael Mosticchio
credit-ir@blueowl.com
Media Contact:
Prosek Partners
Josh
pro-blueowl@prosek.com
View original content:https://www.prnewswire.com/news-releases/blue-owl-capital-corporation-announces-preliminary-fourth-quarter-financial-results-and-portfolio-update-302352597.html
SOURCE Blue Owl Capital Corporation
FAQ
What were OBDC's key financial results for Q4 2024?
What is the combined asset size of OBDC after merging with OBDE?
What is OBDC's portfolio composition after the merger?
What are the top three industry sectors in OBDC's portfolio?
What is OBDC's non-accrual rate post-merger?
