Blue Owl Capital Corporation · NYSE:OBDC
Blue Owl Capital — Owl Rock Capital — Q3 2019 Earnings Presentation
18 slides from Blue Owl Capital's earnings presentation, Sep 30, 2019
Slide 1: Owl Rock Capital Corporation Quarterly Earnings Presentation
OWL ROCK CAPITAL CORPORATION Quarterly Earnings Presentation September 30, 2019
Slide 2: Overview of Owl Rock Capital Corporation
OVERVIEW OF OWL ROCK CAPITAL CORPORATION Listed on the New York Stock Exchange under the symbol “ORCC” $8,270 2nd largest publicly traded BDC Specialty finance company focused on lending to middle market companies $7,241 $6,832 Borrower weighted average revenue and EBITDA of $419MM and $77MM
Slide 3: Key Highlights
KEY HIGHLIGHTS Directly originated upper middle market portfolio Scaled and Target EBITDA: $10 million − $250 million Diversified, Borrower weighted average EBITDA of $77 million with portfolio company leverage of 5.5x1,4 Senior Secured Diversified portfolio of investments in 96 portfolio co
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS (Dollar amounts in thousands, except per share data; per share data is based on weighted average shares outstanding during the period, except as otherwise noted) Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Net investment income per share $0.44 $0.42 $0.41 $0.42 $0.36 Net realized an
Slide 5: Portfolio Highlights – Selected Metrics
PORTFOLIO HIGHLIGHTS – SELECTED METRICS As of and For Three Months Ended (Dollar amounts in thousands) December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 Investments at Fair Value $5,784,069 $6,831,712 $7,240,755 $8,270,254 Number of Portfolio Companies 73 81 90 96 Average Investment
Slide 6: Quarterly Statements of Financial Condition
QUARTERLY STATEMENTS OF FINANCIAL CONDITION (Dollar amounts in thousands, except per share data; per share data is based on weighted average shares outstanding during the period, except as otherwise noted) As of December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 Assets Investments at
Slide 7: Quarterly Operating Results Detail
QUARTERLY OPERATING RESULTS DETAIL (Amounts in thousands) For the Three Months Ended December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 Investment Income: Interest From Investments – Interest Income13 $121,959 $148,736 $162,334 $179,729 Interest From Investments – Other Fees14 $2,064
Slide 8: Net Asset Value per Share Bridge
NET ASSET VALUE PER SHARE BRIDGE ($0.31) $0.36 $15.28 $15.25 ($0.02) $15.22 ($0.03) ($0.05) 6/30/19 Offering and Adjusted Q3'19 Q3'19 Q3'19 Q3'19 9/30/19 NAV per Share Underwriting Costs NAV per Share Net Investment Fixed Dividend Special Dividend Realized & NAV per Share Associated with IPO Income
Slide 9: Portfolio Highlights – Originations
PORTFOLIO HIGHLIGHTS – ORIGINATIONS (Dollar amounts in millions) Originations and Net Funds Growth16 New investment commitments and fundings totaled $1,542.7 and $1,290.1 respectively, for the quarter. The commitments were distributed across 21 investments in 19 portfolio companies, 10 of which we
Slide 10: Portfolio Highlights – Asset Mix
PORTFOLIO HIGHLIGHTS – ASSET MIX New Investment Fundings End of Period Investments (At par value, Dollar amounts in millions) (At fair value, Dollar amounts in millions) 1st Lien 2nd Lien Unsecured Equity Investment funds and vehicles 1st Lien 2nd Lien Unsecured Equity Investment funds and vehicles
Slide 11: Portfolio Highlights – Diversification
PORTFOLIO HIGHLIGHTS – DIVERSIFICATION Borrower Diversification Industry Diversification Top 10 positions Healthcare providers and services 9.4% represent 25% of the Internet software and services 9.2% portfolio at FV Professional services 8.7% Distribution 7.4% Buildings and real estate 6.9% Food a
Slide 12: Portfolio Highlights – Net Interest Margin
PORTFOLIO HIGHLIGHTS – NET INTEREST MARGIN Weighted Average Total Yield of Debt and Income Producing Securities at Fair Value Weighted Average Spread Over LIBOR of All Floating Rate Investments 12 Average Stated Interest Rate on Debt Outstanding 17 3 Month London Interbank Offered Rate (LIBOR) 10.0%
Slide 13: Portfolio Highlights – Portfolio Ratings
PORTFOLIO HIGHLIGHTS – PORTFOLIO RATINGS No investments on non-accrual status as of September 30, 2019 (Dollar amounts in thousands) December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 Internal Performance Investments at % of Total Investments at % of Total Investments at % of Total
Slide 14: Diverse Access to Financing with Well Laddered Maturities
DIVERSE ACCESS TO FINANCING WITH WELL LADDERED MATURITIES Aggregate Principal Amount Principal Committed / Amount Maturity Outstanding Outstanding Interest Rate Date Debt Maturities ($mm) Secured $1,170 million $291 million LIBOR + 200 04/02/24 Revolver * $3,185 SPV Asset $400 million $300 million L
Slide 15: Distribution Information
DISTRIBUTION INFORMATION Estimated Dividend Yield22 10.2% 10.2% 10.2% 10.2% 9.2% 8.7% Fixed Dividend $0.02 $0.04 $0.08 $0.08 $0.08 $0.08 Special Dividend Approved by Board of Directors $0.31 $0.31 $0.31 * $0.31 * $0.31 * $0.31 * Approval by Board of * Directors required23 3Q'19 4Q'
Slide 16: Endnotes
ENDNOTES Note: Figures are as of the quarter-ended 9/30/19 unless otherwise noted 1. Borrower financials are derived from the most recently available portfolio company financial statements, have not been independently verified by Owl Rock, and may reflect a normalized or adjusted amount. Accordingly
Slide 17: Important Information
IMPORTANT INFORMATION The information contained in this presentation should be viewed in conjunction with the Company’s most recently-filed Quarterly Report on Form 10-Q or Form 10-K. The information contained herein may not be used, reproduced or distributed to others, in whole or in part, for any
Slide 18: ORCC Investor Relations
ANY QUESTIONS PLEASE CONTACT: ORCC Investor Relations ORCCIR@owlrock.com (212) 651-4705 www.OwlRockCapitalCorporation.com NYSE: ORCC │ 18