Exhibit 99.1

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

NEW YORK — February 21, 2024 — 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.

 

 

(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.

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.

 

 

(3)

This was disclosed as “Investment funds and vehicles” prior to Q2 2023.


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


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.