Blue Owl Capital Corporation · NYSE:OBDC
Blue Owl Capital — Q3 2024 Earnings Presentation
23 slides from Blue Owl Capital's earnings presentation, Nov 7, 2024
Slide 1: Quarterly Earnings Presentation
November 6, 2024 Blue Owl Capital Corporation Quarterly Earnings Presentation 1 NYSE: OBDC
Slide 2: Review of Q3 2024
Review of Q3 2024 • Net asset value per share of $15.28, down from $15.36 as of 6/30/2024 • Net investment income per share of $0.47, down from $0.48 as of 6/30/2024 • Net income per share of $0.35, up from $0.31 as of 6/30/2024 • Annualized ROE on net investment income and net income of 12.4% 1 and
Slide 3: Overview of Blue Owl Capital Corporation (NYSE: OBDC)
Overview of Blue Owl Capital Corporation (NYSE: OBDC) Publicly traded specialty financing company focused on lending to upper middle-market companies #3 Public Market Player5 Well-Positioned in Current Environment Annualized Current Credit Ratings Market Cap5 Leverage4 Liquidity3 Dividend Yield2 Pro
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 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Investment Income Per Share $0.49 $0.51 $0.47 $0.48 $0.47 Net Realized a
Slide 5: Portfolio Highlights - Selected Metrics
Portfolio Highlights - Selected Metrics As of and For Three Months Ended September 30, December 31, September 30, (Dollar amounts in thousands) March 31, 2024 June 30, 2024 2023 2023 2024 Investments at Fair Value $12,896,158 $12,713,348 $12,414,384 $13,341,982 $13,447,536 Number of Portfolio Compan
Slide 6: Portfolio Highlights – New Quarterly Portfolio Activity
Portfolio Highlights – New Quarterly Portfolio Activity For Three Months Ended (Dollar amounts in thousands) September 30, December 31, March 31, 2024 June 30, 2024 September 30, 2023 2023 2024 Investment Activity at Par: New Investment Commitments (Net of Sell Downs) $500,184 $1,296,854 $1,202,698
Slide 7: Portfolio Highlights – Asset Mix
Portfolio Highlights – Asset Mix $13.4bn 219 31 $197mm 11.0% Portfolio Portfolio Portfolio Company Portfolio Size20 Portfolio Yield2 Companies Industries EBITDA7 3% Weighted Average Borrower Statistics7: 11% 3% Overall Q2 2024 Q3 2024 2% 5% Revenue $876mm $875mm 81% Senior Secured EBITDA $195mm $19
Slide 8: Portfolio Highlights – Diversification
Portfolio Highlights – Diversification Borrower Diversification Industry Diversification Internet software and services 11.2% Wingspire: 3.9% Associa: 3.7% Insurance 8.3% Senior Loan Fund: 2.8% PCF Insurance Services: 2.6% Food and beverage 7.3% Inovalon: 2.4% Fifth Season: 2.1% Healthcare technolog
Slide 9: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of (Dollar amounts in thousands, except per share data; per share data is September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 based period end shares, except as otherwise noted) Assets Investments at Fair Value $12,896,1
Slide 10: Quarterly Operating Results Detail
Quarterly Operating Results Detail For the Three Months Ended (Dollar and share amounts in thousands) September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Investment Income Interest From Investments – Interest Income17 $392,574 $398,851 $383,443 $380,334 $394,214 Int
Slide 11: Net Asset Value Per Share Bridge
Net Asset Value Per Share Bridge $0.47 ($0.37) $15.36 ($0.06) ($0.13) $15.28 6/30/24 Q2'24 Q3'24 Q3'24 Realized & Change in 9/30/24 NAV per Share Supplemental Dividend Net Investment Regular Unrealized Gain (Loss) NAV per Share (Paid in Q3'24) Income Dividend and Other Past performance is not a guar
Slide 12: Portfolio Highlights - Net Interest Margin
Portfolio Highlights - Net Interest Margin 14.0% 12.3% 12.4% 12.1% 11.9% 12.0% 11.5% 10.0% 8.0% 6.7% 6.7% 6.6% 6.2% 6.3% 5.6% 5.6% 5.8% 5.8% 6.0% 5.6% 4.6% 5.4% 5.3% 5.3% 5.3% 4.0% 2.0% 0.0% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Weighted Average Total Yield of Accruing Debt and Income Producing Securities 1
Slide 13: Portfolio Highlights – Internal Portfolio Ratings
Portfolio Highlights – Internal Portfolio Ratings Non-accrual investments at 09/30/2024 as a percentage of total debt investments at cost and fair value were 2.1% and 0.7% respectively (Dollar amounts in thousands) Internal Performance December 31, 2023 March 31, 2024 June 30, 2024 September 30, 20
Slide 14: Debt Obligations and Maturity Ladder
Debt Obligations and Maturity Ladder Aggregate Principal Amount Principal Committed / Amount Outstanding Outstanding Interest Rate Maturity Date Debt Maturities22 ($mm) Secured Revolver $2,630 million $950 million SOFR + 1882 11/15/2028 $3,430 SPV Asset Facility 2 $300 million $300 million SOFR + 27
Slide 15: Historical Dividend Yield
Historical Dividend Yield Dividends & Dividend Yield Based on NAV per Share27 $0.45 11.2% 12.0% 11.2% 11.0% 10.9% 10.5% 10.7% 10.3% $0.40 9.9% $0.08 $0.05 $0.06 $0.05 $0.07 $0.08 10.0% 9.2% $0.06 9.7% $0.35 8.6% $0.04 9.6% 9.6% 8.3% $0.03 9.1% 8.8% 8.7% 8.7% 8.6% $0.30 8.4% 8.0% $0.25 6.0% $0.20 $0.
Slide 16: Historical Dividends Declared
Historical Dividends Declared Date Payment Dividend Per Date Payment Dividend Per Record Date Dividend Type Record Date Dividend Type Declared Date Share Declared Date Share 2/27/2019 3/31/2019 5/15/2019 Q1'19 Regular Dividend $0.33 8/2/2022 9/30/2022 11/15/2022 Q3’22 Regular Dividend $0.31 6/4/2019
Slide 17: Post-Merger Portfolio Composition - OBDC and OBDE
Post-Merger Portfolio Composition - OBDC and OBDE OBDC OBDE Combined Company Total Investments – Fair Value $13,447,536 $4,249,075 $17,696,611 Number of Portfolio Companies 219 185 232 Asset Type % First Lien 76% 85% 78% % Second Lien 5% 5% 5% % Unsecured 2% 2% 2% % Preferred Equity 3% 3% 3% % Commo
Slide 18: Post-Merger Portfolio Composition - OBDC and OBDE (Cont’d.)
Post-Merger Portfolio Composition - OBDC and OBDE (Cont’d.) OBDC OBDE Combined Company Balance Sheet Total Assets $14,090,780 $4,464,334 $18,555,114 Net Assets $5,961,849 $1,910,745 $7,872,594 Cash $481,315 $151,341 $632,656 Total Debt Outstanding $7,836,556 $2,467,580 $10,304,136 Total Debt Committ
Slide 19: Endnotes
Endnotes Note: Figures are as of the quarter-ended 9/30/2024 unless otherwise noted. Past performance is not a guarantee of future results. 1. Annualized quarterly net investment income or net income divided by average beginning and ending period net asset value. 2. Dividend yield based on annualize
Slide 20: Endnotes (Cont’d.)
Endnotes (Cont’d.) 25. In connection with the note offering, OBDC entered into an interest rate swap to continue to align the interest rates of our liabilities with our investment portfolio, which consists of predominately floating rate loans. As a result of the swap, our effective interest rate on
Slide 21: Important Information
Important Information Past performance is not a guide to future results and is not indicative of expected realized returns. As of September 30, 2024. Pro forma is defined as OBDC and OBDE metrics on a combined basis. The information contained in this presentation should be viewed in conjunction with
Slide 22: Disclosures
Disclosures Forward-Looking Statements Some of the statements in this presentation constitute forward-looking statements because they relate to future events, future performance or financial condition of OBDC or OBDE or the two-step merger (collectively, the “Mergers”) of OBDE with and into OBDC. Th
Slide 23: Disclosures
Disclosures Important Notice; No Offer or Solicitation No representations or warranties, express or implied are given in, or in respect of, this presentation. To the fullest extent permitted by law, in no circumstances will OBDC, OBDE or any of their respective subsidiaries, shareholders, affiliates