Exhibit 99.1

Blue Owl Capital Corporation Reports Second Quarter Net Investment Income Per Share of $0.48 and

NAV Per Share of $15.26

NEW YORK — August 9, 2023 — Blue Owl Capital Corporation (NYSE: OBDC, or the “Company” and formerly known as Owl Rock Capital Corporation) today announced financial results for its second quarter ended June 30, 2023.

SECOND QUARTER 2023 HIGHLIGHTS

 

   

Second quarter net investment income (“NII”) of $0.48 per share, which represents the second consecutive quarter of record NII for the Company

 

   

In addition, the Board declared a second quarter supplemental dividend of $0.07 per share

 

   

Total dividends for the second quarter were $0.40 per share, which represents a 30% increase from the same period a year ago

 

   

Delivered NII ROE1 of 12.6% in the second quarter, up from 8.6% the prior year

 

   

Net asset value per share increased to $15.26 compared to $15.15 as of March 31, 2023

Craig W. Packer, Chief Executive Officer of Blue Owl Capital Corporation commented, “OBDC achieved record net investment income for the second straight quarter and continues to deliver strong credit performance. Looking ahead, we believe the Company can generate an ROE in excess of 12% for 2023 based on our current outlook for rates and credit performance.”

Dividend Declarations

The Company’s Board of Directors has declared a third quarter 2023 dividend of $0.33 per share for stockholders of record as of September 29, 2023, payable on or before October 13, 2023 and a second quarter 2023 supplemental dividend of $0.07 per share for stockholders of record as of August 31, 2023, payable on or before September 15, 2023.

Stock Repurchases

On November 1, 2022, the Board approved the 2022 Repurchase Program under which the Company may repurchase up to $150 million of the Company’s common stock. In addition, in the fourth quarter 2022, certain affiliates and employees of Blue Owl participated in an investment vehicle to purchase up to $25 million of OBDC common stock. As of June 30, 2023, the near-term target of $75 million of OBDC common stock was purchased, of which $50 million was bought by OBDC. The Company purchased 4.1 million shares at an average price of $12.22 per share, which was accretive to net asset value by approximately $0.03 per share.

PORTFOLIO AND INVESTING ACTIVITY

For the three months ended June 30, 2023, new investment commitments totaled $183.0 million across five new portfolio companies and six existing portfolio companies. This compares to $175.1 million for the three months ended March 31, 2023 across three new portfolio companies and eight existing portfolio companies.

For the three months ended June 30, 2023, the principal amount of new investments funded was $169.6 million. For this period, the Company had $566.2 million aggregate principal amount in sales and repayments.

For the three months ended March 31, 2023, the principal amount of new investments funded was $94.3 million. For this period, the Company had $76.1 million aggregate principal amount in sales and repayments.

As of June 30, 2023 and March 31, 2023, the Company had investments in 187 portfolio companies with an aggregate fair value of $12.9 billion and $13.2 billion, respectively. As of June 30, 2023, the average investment size in each portfolio company was $68.9 million based on fair value.

As of June 30, 2023, based on fair value, our portfolio consisted of 69.1% first lien senior secured debt investments, 14.1% second lien senior secured debt investments, 2.1% unsecured debt investments, 2.8% joint ventures2, 3.1% preferred equity investments, and 8.8% common equity investments.


As of March 31, 2023, based on fair value, our portfolio consisted of 70.5% first lien senior secured debt investments, 14.1% second lien senior secured debt investments, 2.0% unsecured debt investments, 2.4% joint ventures2, 3.0% preferred equity investments, and 8.0% common equity investments.

As of June 30, 2023 and March 31, 2023, approximately 83.2% and 84.6% of the portfolio was invested in secured debt, respectively. As of June 30, 2023, 98.1% of our debt investments based on fair value in our portfolio were at floating rates.

 

 

(1)

NII ROE is calculated as annualized Q2’23 net investment income divided by average Q2’23 and Q1’23 net asset value.

(2)

Presented as investment funds and vehicles in previous quarters.


As of June 30, 2023 and March 31, 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 12.2% and 12.0%, 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) was 12.2% and 12.0%, respectively.

As of June 30, 2023, three portfolio companies with an aggregate fair value of $99.0 million were on non-accrual status, representing 0.9% of the total fair value of the debt portfolio.

RESULTS OF OPERATIONS FOR THE QUARTER ENDED JUNE 30, 2023

Investment Income

Investment income increased to $394.2 million for the three months ended June 30, 2023 from $377.6 million for the three months ended March 31, 2023, primarily due to an increase in our portfolio’s weighted average yield from 11.5% as of March 31, 2023 to 11.7% as of June 30, 2023, partially offset by a decrease in our debt portfolio at par from $11.7 billion as of March 31, 2023 to $11.3 billion as of June 30, 2023. Included in investment income is dividend income which decreased slightly to $38.4 million as of June 30, 2023 from $39.8 million as of March 31, 2023. Also included in investment income are other fees such as prepayment fees and accelerated amortization of upfront fees from unscheduled paydowns. Income generated from these fees increased to $4.3 million as of June 30, 2023 from $0.7 million as of March 31, 2023. Other income increased to $7.4 million as of June 30, 2023 from $3.4 million as of March 31, 2023. This is due to an increase in incremental fee income, which are fees that are generally available 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.

Expenses

Total expenses, excluding taxes, increased to $205.2 million for the three months ended June 30, 2023 from $196.4 million for the three months ended March 31, 2023, primarily due to an increase in interest expense and incentive fees. The increase in interest expense was primarily driven by 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.

Liquidity and Capital Resources

As of June 30, 2023, we had $368 million in cash and restricted cash, $7.2 billion in total principal value of debt outstanding, and $1.5 billion of undrawn capacity on our credit facilities. The Company’s weighted average interest rate on debt outstanding was 5.4% and 5.2% for the three months ended June 30, 2023 and March 31, 2023, respectively. Ending net debt to equity was 1.14x and 1.21x as of June 30, 2023 and March 31, 2023, respectively.


CONFERENCE CALL AND WEBCAST INFORMATION

Conference Call Information:

The conference call will be broadcast live on August 10, 2023 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: 13739247


FINANCIAL HIGHLIGHTS

 

     For the three months ended  
($ in thousands, except per share amounts)    June 30, 2023     March 31, 2023     June 30, 2022  

Investments at Fair Value

   $ 12,892,943     $ 13,157,251     $ 12,648,126  

Total Assets

   $ 13,393,278     $ 13,679,100     $ 13,088,383  

Net Asset Value Per Share

   $ 15.26     $ 15.15     $ 14.48  

Investment Income

   $ 394,223     $ 377,622     $ 273,286  

Net Investment Income

   $ 186,676     $ 177,859     $ 125,124  

Net Income

   $ 195,562     $ 201,842     $ (34,946

Net Investment Income Per Share

   $ 0.48     $ 0.45     $ 0.32  

Net Realized and Unrealized Gains (and Losses) Per Share

   $ 0.02     $ 0.07     $ (0.41

Net Income Per Share

   $ 0.50     $ 0.52     $ (0.09

Distributions Declared from Net Investment Income Per Share

   $ 0.33     $ 0.33     $ 0.31  

Supplemental Distributions Declared from Net Investment Income Per Share

   $ 0.07     $ 0.06     $ —    

Weighted Average Yield of Accruing Debt and Income Producing Securities at Fair Value

     12.2     12.0     8.9

Weighted Average Yield of Accruing Debt and Income Producing Securities at Amortized Cost

     12.2     12.0     8.8

Percentage of Debt Investment Commitments at Floating Rates

     98.1     98.2     98.8


CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(Amounts in thousands, except share and per share amounts)

 

     June 30, 2023
(Unaudited)
     December 31, 2022  

Assets

     

Investments at fair value

     

Non-controlled, non-affiliated investments (amortized cost of $11,584,680 and $12,133,062, respectively)

   $ 11,550,563      $ 12,010,369  

Non-controlled, affiliated investments (amortized cost of $19,680 and $6,224, respectively)

     19,626        6,175  

Controlled, affiliated investments (amortized cost of $1,219,611, and $906,846, respectively)

     1,322,754        993,801  
  

 

 

    

 

 

 

Total investments at fair value (amortized cost of $12,823,971 and $13,046,132, respectively)

     12,892,943        13,010,345  

Cash (restricted cash of $92,975 and $96,420, respectively)

     366,208        444,278  

Foreign cash (cost of $1,675 and $809, respectively)

     1,687        809  

Interest receivable

     107,767        108,085  

Receivable from a controlled affiliate

     19,302        17,709  

Prepaid expenses and other assets

     5,371        3,627  
  

 

 

    

 

 

 

Total Assets

   $ 13,393,278      $ 13,584,853  
  

 

 

    

 

 

 

Liabilities

     

Debt (net of unamortized debt issuance costs of $85,969 and $95,647, respectively)

   $ 7,027,176      $ 7,281,744  

Distribution payable

     128,612        129,517  

Management fee payable

     48,023        47,583  

Incentive fee payable

     39,598        34,462  

Payables to affiliates

     6,494        6,351  

Accrued expenses and other liabilities

     194,411        202,793  
  

 

 

    

 

 

 

Total Liabilities

     7,444,314        7,702,450  
  

 

 

    

 

 

 

Commitments and contingencies (Note 7)

     

Net Assets

     

Common shares $0.01 par value, 500,000,000 shares authorized; 389,732,875 and 392,476,687 shares issued and outstanding, respectively

     3,897        3,925  

Additional paid-in-capital

     5,936,644        5,970,674  

Accumulated undistributed (overdistributed) earnings

     8,423        (92,196
  

 

 

    

 

 

 

Total Net Assets

     5,948,964        5,882,403  
  

 

 

    

 

 

 

Total Liabilities and Net Assets

   $ 13,393,278      $ 13,584,853  
  

 

 

    

 

 

 

Net Asset Value Per Share

   $ 15.26        14.99  


CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share and per share amounts)

 

     For the Three Months
Ended June 30,
    For the Six Months
Ended June 30,
 
     2023     2022     2023     2022  

Investment Income

        

Investment income from non-controlled, non-affiliated investments:

        

Interest income

   $ 297,992     $ 206,103     $ 586,670     $ 414,704  

Payment-in-kind interest income

     44,803       26,748       87,858       49,159  

Dividend income

     17,607       9,685       35,440       21,413  

Other income

     7,243       5,538       10,207       9,386  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income from non-controlled, non-affiliated investments

     367,645       248,074       720,175       494,662  
  

 

 

   

 

 

   

 

 

   

 

 

 

Investment income from non-controlled, affiliated investments:

        

Dividend income

     177       —         177       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income from non-controlled, affiliated investments:

     177       —         177       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Investment income from controlled, affiliated investments:

        

Interest income

     5,553       1,854       8,227       3,627  

Dividend income

     20,662       23,195       42,688       38,833  

Other Income

     186       163       578       325  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income from controlled, affiliated investments

     26,401       25,212       51,493       42,785  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Investment Income

     394,223       273,286       771,845       537,447  
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses

        

Interest expense

     110,017       67,347       213,972       128,726  

Management fees

     48,024       46,873       96,116       94,286  

Performance based incentive fees

     39,598       26,541       77,326       52,495  

Professional fees

     4,131       3,406       7,804       7,235  

Directors’ fees

     257       266       515       556  

Other general and administrative

     3,140       2,143       5,811       4,276  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

     205,167       146,576       401,544       287,574  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss) Before Taxes

     189,056       126,710       370,301       249,873  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax expense (benefit), including excise tax expense (benefit)

     2,380       1,586       5,765       2,394  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net Investment Income (Loss) After Taxes

   $ 186,676     $ 125,124     $ 364,536     $ 247,479  
  

 

 

   

 

 

   

 

 

   

 

 

 
Net Realized and Change in Unrealized Gain (Loss)         
Net change in unrealized gain (loss):         

Non-controlled, non-affiliated investments

   $ 3,869     $ (152,965   $ 69,292     $ (222,913

Non-controlled, affiliated investments

     (4     —         (5     —    

Controlled, affiliated investments

     6,127       (3,636     16,381       (15,394

Translation of assets and liabilities in foreign currencies

     1,360       (3,221     2,570       (3,702

Income tax (provision) benefit

     (2,415     —         (2,696     —    
  

 

 

   

 

 

   

 

 

   

 

 

 
Total Net Change in Unrealized Gain (Loss)      8,937       (159,822     85,542       (242,009
  

 

 

   

 

 

   

 

 

   

 

 

 
Net realized gain (loss):         

Non-controlled, non-affiliated investments

     118       (51     (52,365     4,651  

Foreign currency transactions

     (169     (197     (308     (1,082
  

 

 

   

 

 

   

 

 

   

 

 

 
Total Net Realized Gain (Loss)      (51     (248     (52,673     3,569  
  

 

 

   

 

 

   

 

 

   

 

 

 
Total Net Realized and Change in Unrealized Gain (Loss)      8,886       (160,070     32,869       (238,440
  

 

 

   

 

 

   

 

 

   

 

 

 
Net Increase (Decrease) in Net Assets Resulting from Operations    $ 195,562     $ (34,946   $ 397,405     $ 9,039  

Earnings Per Share - Basic and Diluted

   $ 0.50     $ (0.09   $ 1.02     $ 0.02  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted Average Shares Outstanding - Basic and Diluted

     389,930,979       394,184,560       390,487,912       394,246,724  
  

 

 

   

 

 

   

 

 

   

 

 

 


PORTFOLIO AND INVESTMENT ACTIVITY

 

     For the Three Months Ended June 30,  
($ in thousands)            2023                     2022          

New investment commitments

    

Gross originations

   $ 182,955     $ 824,641  

Less: Sell downs

     —         (221,256
  

 

 

   

 

 

 

Total new investment commitments

   $ 182,955     $ 603,385  
  

 

 

   

 

 

 

Principal amount of investments funded:

    

First-lien senior secured debt investments

   $ 110,178     $ 242,916  

Second-lien senior secured debt investments

     —         883  

Unsecured debt investments

     —         20,462  

Preferred equity investments

     —         42,665  

Common equity investments

     16,535       15,120  

Joint ventures(1)

     42,875       19,250  
  

 

 

   

 

 

 

Total principal amount of investments funded

   $ 169,588     $ 341,296  
  

 

 

   

 

 

 

Principal amount of investments sold or repaid:

    

First-lien senior secured debt investments

   $ (528,569   $ (488,251

Second-lien senior secured debt investments

     (35,850     —    

Unsecured debt investments

     —         —    

Preferred equity investments

     (1,589     —    

Common equity investments

     (195     —    

Joint ventures(1)

     —         —    
  

 

 

   

 

 

 

Total principal amount of investments sold or repaid

   $ (566,203   $ (488,251
  

 

 

   

 

 

 

Number of new investment commitments in new portfolio companies(2)

     5       16  

Average new investment commitment amount

   $ 23,800     $ 15,432  

Weighted average term for new debt investment commitments (in years)

     3.7       5.9  

Percentage of new debt investment commitments at floating rates

     100.0     100.0

Percentage of new debt investment commitments at fixed rates

     —       —  

Weighted average interest rate of new debt investment commitments(3)

     11.9     9.5

Weighted average spread over applicable base rate of new floating rate debt investment commitments

     6.6     7.2

 

(1)

Presented as investment funds and vehicles in previous quarters.

(2)

Number of new investment commitments represents commitments to a particular portfolio company.

(3)

For the three months ended June 30, 2023, assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month SOFR, which was 5.27% as of June 30, 2023. For the three months ended June 30, 2022, assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month SOFR, which was 2.12% as of June 30, 2022.


PORTFOLIO AND INVESTMENT ACTIVITY

 

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 June 30, 2023, OBDC had investments in 187 portfolio companies with an aggregate fair value of $12.9 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